GOVERNOR FERGUSON'S MESSAGE
* * * *
Oklahoma's Chief Executive Offers Suggestions to the Eighth
Legislative Assembly
when the bill Is acted upon in the
hurry and turmoil thut so often
characterise the cloning hours of
,
Guthrie. Okla., Jan. 10.—Governor
iFerguson's message was read to the
legislature In Joint session aa follows:
Gentleman:
Ton have assembled In the capacity
of lawmakers, representing the only
feature of Territorial Government
which derives Its authority from the
people. Let us all hope that when un-
other legislative assembly convenes In
Oklahoma It will be after her star has
been given a place upon the flrld of
iblue—the "brightest and the best."
The progress of the territory has
been wonderful during the period which
has Intervened since the adjournment
,of the Seventh legislative assembly.
The population Is now at least seven
hundred thousand. The wealth of tin-
territory, if ail property could be as
Ceased at its real cash value, would
each In the aggregate five hundnd
and forty million dollurs. Our
schools are the greatest of all terri-
torial Interests. The people of Oklu
homa are educators.
This assembly will probably be the
of a territorial character. It will be
a marker of history, and may close the
chapter of territorial legislation. We
are ll>lng In the formative days of
a state. Our people have, by theli
achievements, written a magnificent
history. The world has looked upon
Oklahoma and marveled at her accom-
plishments. Her past has been full of
Interest and ber future Is full of
promise.
Statehood.
Self government is one of the things
most highly cherished by every liberty
loving American citizen. The people
of Oklahoma want statehood. The
people of Indian Territory want stute
hood. A bill now pending In the senate
of the Unlt«d States offern what i*
wanted by both terltorles. That bill
should receive favorable action. It
would be proper for this assembly to
pass at once a joint resolution usklng
that statehood be conferred through the
bill now pending in the senate.
Territorial Officers
Ths reports of the various territorial
officials have been printed In com-
pliance with the law and submlttea
for your careful consideration. It Is
earnestly requested that committees be
appointed by the assembly to carefully
check up each of the offices connected
with the territorial government, and
that a report be made on the condition
and business transactions of each de-
partment. As members of this body
you have come direct form the people.
You are their chosen business agents,
and through you they should know how
their affairs are being conducted.
Appropriations.
Oklahoma has made the most won-
derful progress along all lines of pos-
sible development ever witnessed In any
commonwealth In the American re-
public In so short a time. She ha*
grown to magnificent proportions.
Conditions have very materially
changed. Requirements and neces-
sities have changed also.
In dealing with financial matters It
Should not be forgotten that with the
growth of the territory have come In-
creased demands for large appropri-
ations. and It is not correct economy
to withhold any necessary support, and
by so doing curtail In any way the pro-
gress which has so conspicuously
marked our past history. In my Judg-
ment the people who pay the taxes and
upon whom devolve the responsibility
of supporting the various Intereots of
the commonwealth .are willing to meet
all necessary expenditures and will
cheerfully acquiesce In the action of
this honorable body in making the ap-
propriations necessary to meet
reasonable demands. However, with-
out presuming to Instruct, I have the
honor to suggest that in matters per-
taining to appropriations It is always
expedient for us to follow the ancient
admonition to be "as wise as serpents
and as harmless as doves."
Many demands will be made upon
this assembly for appropriations. The
needs are greater than at any time
during the history of the territory,
and the ability to meet them has been
Increased accordingly. The one safe-
guard, however, is to know that every
appropriation asked for is necessary
at this time.
There are seven educational institu-
tions in the territory to be maintained.
They present claims to the territorial
assembly every session for appropri-
ations. It, in my Judgment, is not and
should not be the policy of the territory
through Its legislative assembly to
deny any of these lnstrtutions the sup.
port that they need, but, at the same-
time, precaution should be taken to
prevent any appropriation not actually
needed at this time. Local enthusiasm
and a desire to build up an Institution
which will add to the welfare of
a community, as well as to the gen-
eral welfare, often Inspires efforts that
reach beyond the present financial
power of the territory. Again, ambition
to build quickly and to develop a great
Institution regardless of existing con-
ditions sometimes leads promoters of
appropriations to transcend the ca-
pacity of the territory. We can only
build up our interests as existing con-
ditions will permit. The only consist-
ent way Is to pave the road as wc go
but not in advance of our finunclul
ability to do things. As the common-
wealth advances in population and
wealth, we should make provision to
meet the Increased demands accord
Ingly, but we should never go beyond
present necessity.
These are matters that should bo
submitted to the careful consideration
of this assembly, belie ving thut you will
act In a business-like manner, conform-
ing the general demands to the ability
of the territory to meet them.
General Appropriation Bill
Legislative assemblies have estab-
lished a dangerous precedent in re-
lation to the general appropriation
bill. It has been a custom too Ions
observed to allow the so-called genera]
appropriation bill to remain for action
until the closing hours of the session, at
which time it Is formulated and passed
hastily and often without the mature
consideration that Its Importance war-
wants. This custom frequently allows
the intrusion of certain things that
should not be a part of the appropri-
ation bill. Unjust claims against the-
territory, or state, are often attached
to the general appropriation hill and
passed as a part of It. It Is a difficult
task to prevent such work, especially
legislative body.
Every state constitution should con
tain u provision giving executive
power to \eto any unjust feature of an
appropriation bill without extending
the veto to the bill as a whole. It Is
to b,- hoped that this power will be
conferred by the constitution of the
state of Oklahoma.
A general appropriation bill should
contain only such provisions as refer
to necessary expenses In maintaining
the varloua features of the state
government. All private and individual
appropriations should be considered
sepurutely. The legislature can often
save the state many thousands of
dollurs by refusing to allow private
claims to be attachhed to the bill which
provides for the Ugltlmate exp nses ot
government.
H rd Law.
A law was passed by the Seventh
legislative assembly providing certain
restrictions on stock running at lurge.
Under the provisions of the law, all of
Oklahoma lying east of the one hun-
dredth meridian (ail of the territory
except Beaver county) is subject to
herd law regulations, unless the resi-
dent freeholders und legal voters
otherwise direct. Uoon the presen-
tation of a petition signed by 25 free-
holder* und legal voterB in any county
eust of the one hundredth meridian,
the commissioners ure required to di-
vide the county into stock districts,
no district to contain less than forty-
four square miles. and after the
county Is so divided and if one fourth
the legal voters of any district so peti-
tion an election shull be held and the
voters allowed to decide whether or
not free runge shall prevail In the
district, and If by a majority vote the
freeholders decide In favor of free range
the same shall prevail in that dis-
trict, otherwise stock shall be re-
stricted from running at large.
West of the one hundredth meridian
(in Heaver county) the conditions are
practically reversed. Free range pre-
ulls there unless the voters otherwise
decide. The provisions of the law ren-
der it somewhat difficult for the home-
steader to obtain the much needed re-
lief. The law requires that the free-
holders, If they desire to vote on the
proposition us to whether or not stock
shall be restrained from running at
large, shall petition the board of
county commissioners to divide the
county Into stock districts. On the
west side of the one hundredtt.
meridian it requires the nnmes of one-
fourth of ail the legal voters and
residents in tl?e county on a petition,
before the commissioners are re-
quired to divide the county into stock
districts, while east of the one
hundredth meridian It only requires
twenty-five names for the same
purpose. In short, east of the one
hundredth meridian where they mlgh'
want to vote for free range, It only
requires twenty-five petitioners, while
west of the one hundredth meridian,
where they might want to vote for
herd law, It requires one-fourth of all
the voters of the county. This Is
discrimination against the people of
Heaver county. In Its operation the
law is tinged with class legislation.
In other words if the cattleman east
of the one hundredth meridian wants a
district set apart In which to vote free
runge. he is only required to submit n
petition containing twenty-five names,
while if the homesteader west of the
one hundredth meridian (the citizen
In Beaver county) wants to vote for
herd law, he must submit a petition
containing thfe names of one-fourt'.i of
the legal voters of the entire county.
This In a county like Beaver, 167 miles
long and 34 1-2 miles wide, would
render the homest-ader's task a hard
one.
At the time the law was parsed It
:is doubtless believed thut Beaver
county wouid always remuln a graz-
ing country and that herd luw re-
r est i let ion would not be needed. How-
ever, thut county has been filling up
rapidly with the homesteaders. The
government intended thut country
for the homesteader when It was In-
cluded among the lands subject to entry
The people who have gone there believe
that they can build up homes. Their
crops have been destroyed by cattle
that roam fiee and unrestrained over
the country. The people should be
protected. They are entitled to the
aame protection given the homesteaders
In th* other parts of the territory.
I respectfully recommend that the
luws be amended so as to Include
Beaver county and to protect
all of our citizens aune.
Section 2. of Article 1, of the session
luws of 1903 shohuld be extended In its
application to ull of the territory alike,
and Sections 37 and 38 of Article 1
of the Session laws of 1903 should be
amended so as to make Section 2 of said
act operative in all parts of the terri-
tory within sixty days after the pas-
sage and approval of the act repealing
portions of the former law.
Qaurantine Law.
The territory has a good quarantine
law. It should not be repealed, but
should be extended, strengthened and
more ample provisions made for its
enforcement.
The Seventh legislative assembly
passed a bill, which although not all
that might have been desired, would
have met the requirements fairly well.
The act was submitted for upprovul,
at the adjournment of the the as-
sembly. It was discovered that It
conflicted With certain government
grazing lease contracts then In force,
consequently it could not become a law,
and be effe< tlve. In arranging the pro
visions of the bill the government
contracts had been over looked and no
conditions were tut rposed to mee;
them. After the adjournment of the
legislature. It was discovered thut the
grazing contracts existed but it was too
late to remedy the oversight. These
conditions do not exist at this time,
or at least it is reported that the
existing leases in the reservations
that would be (ffected by the exteurion
of the quarantine line, will expire next
spring, conseqeuntly there Is nothing in
the way at this time to prevent the
desired entension of the lines.
Just as long as animals are allowed
to come Into the territory from the In-
fected region. Just that long will there
be infection unless better safeguards
than the ones now utilized and recom- < m<t>rrtr .£ fcdufell *3 Jwr
meiidtd by the authorities upon thi sub • irork.
Ject can be devised. The "open it
to southern cattle should be gbt-Ushed,
until some remedy is discovered to af-
ford protection through some fcrm of
disinfection. Inspection alone will not
meet the emergency. Let Inspection
be ever so carefully conducted, some
Infected unimuls will probably
pasnrd during the season and ail th«
stock interests of the adjoining
country ruined as a result.
It should not be forgotten that th
Infected cattle are. In a majority of
cases, brought Into the territory by
non-residents, and those who suffer
as a result our own citizens, li
my Judgment it would be safe to ex-
tend the line around the territory em-
bracing the Osage country among tho
other Indian reservations to be added,
provide for additional Inspectors, and
then make an effort to thoroughly dis-
Inf. ct the er. Ire country around which
the line has been extended. As we suc-
ceed In disinfecting the area embraced
within the territorial line, the federal
government will be disposed to pusfc
Its line toward oura as rupidly as con-
ditions will permit.
Game Laws
Th* Seventh legislative assembly
amended the game lawp of the territory
and added some wholesome provisions.
There have been some violations, but.
as a whole the law is u good one and
results are generally satisfactory.
Notwithstanding the merits of the law
it nteds some changes to make It more
effective. The territorial game warden
is allowed such light compensation that
he cannot make the law as effective
is could be done under more favorable
onditions. There should be an appro-
priation mude for necessary expendi-
tures in securing evidence and con-
ducting prosecutions. The appropri-
ation need not be large, but it moat as-
suredly is a necessity. The game
warden often finds It necessary to visit
locality where violations of tne law
are reported, but without a provision
traveling expenses It is almost
Impossible for him to do so unless at a
financial loss to himself. ,
The law should be g.ven power to at-
tach more sever penalties than mere
fines. In some Instances the violate re
of the law has been fined but it failed
to suppress him. it Is believed tha.
some of the violators of the law figure
that they can pay the fines Imposed by
the local courts and then make money
by shipping game. Imprisonment
should be added as one of the penultles
for violating the game laws. The pen-
alty could be imposed in the case of
el) known offenders and this seemb
to be the only remedy.
Good Roads-
A crusade to promote a sentiment In
vor of better public highways has
been inaugurated in a number of the
states and has now reached national
proportions. Almost from time im-
memorial In the history of nations,
the development of good roads has
been one of the principal factors in «x
tending civilization. Well developed
highways in a community not only are
convenience, but they have a tendency
to unite city and rural districts in
more intimate relations und to bring
all social interests more closely to-
gether.
Legislative encouragement to this
very commendable public enterprise
would always be a step In the right di-
rection, and in the interest of the peo-
ple.
World's Fair.
Probably the greatest event of Ilk?
character in the history of nations
was the Louisiana Purchase Exposition
held at St. Louis during the past year.
The highest civilization of the world
was represented in that stupendou*
mingling of races. From many lands
came people to place their products
In competition and to exhibit in one
arena the greatest possibilities of the
twentieth century as well as the de-
velopment and crystalized thought of
the ages.
Okluhonm. the last commonwealth
carved out of the gr*at purchase was a
contestant in this exposition for honors
that were to be conferred. She sought
these honors, as a reward for the pos-
sibilities of her soil, the intelligence,
enterprise und energy of her people as
well as for the splendid advertising, and
prestige to come from abroad.
Results have been very gratifying.
The members of the Oklahoma com-
mission worked onthusiast^cajly to
place the territory before the world In
a proper manner.
The Oklahoma pavllllon was the most
popular resort >n the plaza of states.
Our principal exhibits exceeded all ex-
pectations.
Many medal awards came to Okla-
homa . Prominent among them was
'he gold medal for the best collectlor
of agricultural products. When it is
remembered that Oklahoftia is the in-
fant commonwealth of the American re-
public and just now asking per-
mission to walk alone without parental
assistance, her success at the great fair
will be emphasised, for in that con-
test we were In competition against
the world. This success Is a high com-
mentary upon the enterprising spirit
of the progressive people of Oklahoma
who made it possible.
The report of the commission has
he.n presented to you In prloted form.
That report Includes the business
transactions of the commission from
Its organization May, 1. 1901. to De
e mber 2. 1904. At the time the report
was submitted there w°us some un-
finished business which will be sub-
mitted In a supplemental report. Th«j
commission will have a balance, prob-
ably of several thousund dollars to
turn buck into the treasury.
Historioal Society
Okluhomu has made and will con-
tinue to muke interesting und In-
structive history.
The formative period of common-
wealth Is always murked by events that
must be of great Interest In subsequer;
years. Our territory is no exception
to this fact, but on the other hand em-
phasizes the necessity of efforts to col-
lect and preserve Information about our
"early days." our struggles, our re-
reverses. and our achievements, and
by so doing bequeuth to the future and
historical heritage of priceless value.
No other territory in the history of
this government was peopled under
such novel and romantic circumstances
as was Oklahoma. Her boomers and
her sooners, her settlements made "In
a day;" her unprecedented develop-
ments all combine to make her early
unnals a pleasing story.
But have we been sufficiently alert
on the matter of preserving a complete
record of our history as it has trans-
pired? It may be that we have be*n
a little negligent, but if so we should St
once take the necessary precaution t<*
provide in the future for Uilg tom
School Land Department
The tc+tOQ.: JcrwJ office is enc «f '-•*
Important contingents of the terri
torlal government. The volume of
business transacted by that department
Is Immense. There are about seven
thousand six hundred lessees upon th •
school lands In the territory. There are
two interests to guard In leasing these
lands, the Interests of the funds de-
rived for educationaJ purposes and
the Interest of the lessee who makes
the improvements nnd pays the rental.*.
It Is the policy of the department to
transact the affairs of this office along
the lines of justice to ail und in so
doing at times protests have been made
against the action of the board, grow-
ing out of differences In Judgment as
to what value should be attached to the
lands In making appraisements.
large per cent of these landE
were leased several years ago when con-
ditions were very materially different
from what they are today. When the
rentals were raised so as to conform
nearly as possible to existing con-
ditions, protests followed. There were
some Instances doubtless in which the
appraisements were too high on certain
pieces of land. Again there were in-
stances where they were too low. It
all depends upon the Judgment of th_ 
appraisers. In fixing the value on n
tract of land, with the interest of the
territory to guard, the Interest and
equity of the lessee to guard, and an
adjustment to make that will conform
to present conditions in a business-
like manner, an appraiser has to be
as wise ss the "most subtle" and as
harmless as the most gentle.
Protests from lessees have reached
the board from over the territory
claiming that rentals are too high.
Other persons, not lessees, have claimed
that rentals are too low. In meeting
these conditions the board has ex-
ercised Its best Judgment.
In the year 1903 requests were made
for a board of appraisers. It was sug-
gested that a number of citizens unin-
fluenced by any standards that might
have been established by the office,
could pass upon rental propositions
with more care and probably with bet-
ter Ideas of equity than could be done
by representatives of the department
jwlth established opinions, who have
such.a vast amount of official work to
perform. Accordingly five appraisers,
all honorable citiaens, one of whom is
now a member of this assemb'y, were
appolntted. The members of this board
were not applicants for the place, they
did not know the contemplation of
such a board until they were appointed
They were all well versed in lan~
matter. Most of them were farmers
and all of them were perfectly familiar
with land conditions in Oklahoma. One
of th«m was a school land lessee.
They entered upon their duty with but
on* purpose, that was to give an
honorable, conscientious sppraisement.
After a careful examination In the
most minute details of the work, the
new board raised the rentals much
higher than they had ever been placed
by the school land office. The men
who constituted this board had no
Interest in the matter except the in-
terest of the citizen called upon to
discharge an official duty.
The adjustment of the school land
problem Is a matter that requires the
best and most deliberate Judgment of all
the people of the Territory, and this
consideration should be given free
from political influence or bias. But
with that proposition the present de-
partment has nothing specifically to
do. This transaction of the school
land business w-as a duty delegated
by the federal government. These
lands have not yet been trsnsferred to
our territory. They are held subject to
the disposal of the future state. At pres-
ent the department is more or less an
agency with its original powers dele-
gated by the federal government. For
Information relative to the receipts and
disbursements of this department dur-
ing the biennium covered, you are re-
ferred to the printed report of the
secretary.
Penitentiary.
There were three hundred and fifty-
eight Oklahoma prisoners in the
Kansas penitentiary on the 30th of
November, 1904. The number Is con-
stantly changing, some being rdeasea
upon expiration pf sentence, while
others who are being sent from
time to time from the counties of the
territory. . Kansas has for several
years been keeping the Oklahoma
prisoners. The original contract with
that state stipulated that the price
should be thirty-five cents per day for
each prisoner. In the year 1903 the
Kansas authorities notified the terri-
tory that the existing contract could
be no longer maintained, claiming that
the state was entitled to more compen-
sation for keeping our prisoners. On
the 4th of August, 190S, a contract was
entered Into between the territory of
Oklahoma and the state of Kansas.
That contract stipulated that the terri-
tory should pay forty cents a dav
for esch prisoner. The contract ex-
pires on the 24th day of January, 1905.
Oklahoma Is prohlbltted by congres-
sional restrictions from erecting any
public buildings, consequently, cannot
erect a penitentiary. What mav b*
accomplished with the state of Kansa*
relative to the renewal of the contract
Is not known nt this time. There has
been a change of administration in
that state, and what wiH he the policy
of the new administration concerning
the contract with Oklahomu is *ot
know. If the contract cannot be
newed, the territory is powerless to
act. The prisoners cannot be removed
at this time as there is no place to lake
then, and the territory is prohibited
by Oangress from making the necessary
pry*4i*on In the way of buildings. It
Is be hoped, however, that the con-
tract with Kansas can be extended
tmf&some other provision can be made
for earing for the prisoners of the terri-
tory.
Care of Insane
On the 31st day of May, 1901, a con-
tract was entered into by the governor
of the territory and the Oklahoma San-
itarium company, the contract to re-
main in force for a period of four
years from the 15Ch day of June, 1901.
and terminating on the 16th day of
June, 1905, provided, however, that In
the event it^at the territory should ar-
range for an, asylum, and be prepared
to tako the matter under Its direct
supervision, the contract wift. the San-
Karium company should t^jn'nate,
(therwise it should reniu.'n in force
until June, 1905.
The Seventh legislatlvv trembly
enacted a law locating the in
the military reservation u* FVf*
this reservation having been tendered
to the territory by the floderd? gevero-
ment for the purposes of an tnsnne
ftsylum. The ai t of the Seventh
Cfij&bjy, bowovGf, contained a provision
cc ti- It ir.eeM m* ft* m
force until a rallwny, steam or electric,
should be built to Fort sup-
plj. N« ra.'iway has yet
been built, consequntly the contract en-
tered Into with the Oklahoma Sani-
tarium company is still In force.
The existing contract provides that
the territory shaJI pay the sum of two
hundred dollars per annum for each
patient, for board, lodging, medical
treatment, and all the attention ac-
corded a patient In an institution of this
character.
The territory does not control the
sanitarium management, nnd has noth-
ing to do with its business transactions.
The only authority that the territory
can exeicise is that of a contractor.
The company contracted with the terri-
tory to perform certain things. The ter-
ritory can only require that those
things be done, and beyond the fulfill-
ment of the contract has no jurisdiction
over the business afTalrs of the lnstltu<
tlon
On the fifteenth of D'eember, 1904
there were confined In tne asylum four
hundred and thlrty-fo'ir patients. Pa-
tients are going to an 1 from the asylum
almost all of 'the tin e. It Is worthy to
note, however, tha'. the number is con-
stantly increasing, notwithstanding the
chunges.
Under the law. tne joard of visitation
can release patients from the asylum,
and they can also be released by the
physician In charge. These patients
are sent to the institution by a hority
of the boards of Insanity In the various
counties. In some instances, In fact
in many instances, the persons pro-
nounced Insane by these boards are not
Insane, but are often poor people who
should be maintained at tho expense of
local taxation and not at the expense
of the territory. Again, Inebriates und
cocaine victims are frequently pro-
nounced Insane by the county boards
and sent to the asylum to be cared
for by the territory. These persons are
from time to time released by the phy-
sician at the sanitarium, or by the
board of visitation, and returned to the
counties from which they were sent,
only to be arraigned by the local In-
sanity board and returned to the asy-
lum. While these persons frequently
are not reully Insane, yet they are
legally Insane, having be n so pro-
nounced by a legally constituted board.
It Is respectfully recommended that the
law governing the powers of the county
insanity boards be amended and thai
a restriction be placed upon the lib-
erties too ofteh assumd by said boards
In sending persons who are not Insane
to tho asylum to be cared for at terri-
torial expense.
Auditor's Department
The report of the auditor Indicates a
large increase In the volume of busi-
ness? in the territory.
During the past biennium the treasur-
er received 11,900,156.23 and disbursed
$1,878,721.76. The major portion of the
amount disbursed has been for schools.
It did not come from taxation alone,
but from different sources. It came
from taxation, leasing of school lands.
Interest on deposits of territorial money
and from the federal government.
The sum of J920.141.50 was disbursed
to the colleges. Of this amount the
sum of $228,570.87 came from rentals
on college school lands, the federal
government and other sources.
The amount of warrants issued (not
Including the old tax levy unlveslty
warrants) was 1817,501.82 for the year
ending November 30, 1903.
The amount of warrants issued not
including the university warrants for
year ending November 30, 1904, was
5882.077.31.
The amount of warrants redeemed in-
cluding Interest, for year ending
November 30. 1903 was $854,044.36.
Amount of warrants redeemed for
year ending November 30. 1904 Including
Interest, was $1,024,677.40.
Total amount of warrants Issued for
year of 1903-1904 $1,699,579.13.
Total amount of warrants redeemed
for years 1903-1904. $1,878,721.76.
The running expensss of the territory
amounted to .003 1-3 per cent of th'.'
taxable property in 1901; .002 1-8 in
1902, .003 1-4 In 1903, and .002 13-20
in 1904.
For a detailed statement of the busi-
ness affairs of the territory you are
respectfully referred to the printed
copy of the auditor's report which has
been placed before you.
Territorial Treasurer.
The report of the treasurer shows
the sum of $669,809.62 to the credit
of the territory on November SO,
1904. This amount Includes the sum
of $224,053.21 on deposit In the Capi-
tol National Bank at the time of its
failure in April last. Recently the
comptroller authorized a dividend of
20 per cent The territory received us
a result of this dividend, $48,810.61.
The territory was insured In the
American Bonding Company of Balti-
more in the sum of $2&u,000. In th?
United States Fidelity and Guarantv
Company In the sum of $25,000. These
companies refused to meet their obli-
gations to the territory and suit has
been commenced ugalnst them to re-
cover the insurance.
During the past biennium the only
bonded Indebtedness of the territory
has been canceled The amount of
bonds redeemed was $48,000. Interest
on bonds, $5,407.20. Total. $53,407.20.
There still remains on hand in the
bond Interest fund $7,289.03.
As the territory now nas no bond-
ed Indebtedness, ho bond Interest fund
Is needed, and I respectfully recom-
mend that a law be enacted authorizing
the transfer of the balance In the bond
Interest fund, as well as amounts that
may accrue to that fund In the future
from taxes now assessed but unpaid,
to the general revenue fund.
The taxes accumulating from the
session laws fund could also be very
advantageously transferred to either
the general revenue or the library
fund.
The amount of delinquent taxes due
to the territory from the various coun-
ties is $312,223.31.
This delinquency extends from 1901-
4902 to 1903.
Territorial Depositories
The problem of t;rrltorlal deposito-
ries is a hard one to solve. Viewed
from any standpoint. It Is difficult to
reach a conclusion as to what 1b best.
In 1901 the legislature enacted a de-
pository luw. That law provides that
the treasurer Bhall make a contract
(the contract to receive the approval of
the governor) with a bank or banks in
the territory. The law provides alao
that governmental bonds, wurety bonds
territorial general fund warrants nnd
municipal bonds should be required
as security.
Shortly after the approval o; .he de-
pository act, in April, 1901, a contract
was made with the Capitol National
Bank designating it as the sole deposi-
tory of the territory for one year from
the first day of May, 1901.
At the beginning of the present ter-
ritorial administration whien was oi.
the 10th of December. 1901, there was
deposited In the Capitol National Bank
tra rvtm t?
funds.
About this time (latter pavt ot 1WI)
there were additional cms deposited
in this bank amounting in all to $676.-
969.75. This was money for which the
territorial administration was responsi-
ble, although it was not territorial
money. It came into the custody of
the school land office from applicants
for school land In the counties which
had been opened for settlement dur-
ing the summer of 1901 Each bidder
for school land was required to de-
posit the amount of his bid and as
there were frequently numerous appli-
cants for the same tract of land the
deposits were enormous. of the
$678,120.46 which had besn deposited
during the copetltlve bidding in the
fall of 1901 the sum of 1476,313.22
was returned to unsuccessful blder.v
and the balance passed to the eredlt
of the funds to which the land be-
longed. The amount of money, includ-
ing territorial money and money bid
on school land which was deposited in
the Capitol National Bank during the
latter part of 1901 was enormous, prob-
able at one time between eight and
nine hundred thousand dollars. Afte*
the $476313.22 had been returned to
the unsuccessful bidders and the bal-
ance had passed Into the custody of
territorial treasurer, It increased the
territorial deposits until on the 30th
day of April, 1902, there was In the de-
pository the sum of $602,895.47. The
Capitol National Bank contained all
this money, having been designated as
ihe territorial depository in April, 1901.
At the expiration of the original de-
pository contract It was not deemed
best to ke:p such large amounts In
one bank, consequently additional con-
tracts were made with other ba..,k?  
depositories, the Capitol National Bank
being continued us one of the depos-
itories.
At the time of the expiration of the
contract with the Capitol National
Bank as sole depository many banks
over the territory b:came applicants
to become depositories. The treasurer
was confronted by a perplexing propo-
sition. There were two features of
the situation to consider.- If many
banks were made depositories, while
the amount in each would be less, the
liability of failure wourd be increased.
Upon the other hand If a limited num-
ber of banks were made depositories,
while the liability of a failure might
be lessened the amount in case of fail-
ure and loss would be greater. Tho
treasurer has been increasing th num-
ber of depositories. There are now
seven of them. The deposits are all
secured. It is believed that the se-
curities held by the territorial treas-
urer would bring more upon ihc marke i
than the amounts of any loss that could
possible result from the failure of th>
depositories.
The legislator'who , un devis,- an nh-
solutly safe depository law and ways
and means to comply with It would be a
public benefactor, not only to the ten i
tors', but to the states as well, wner:
this matter is still an unsolved prob
lem. At best It Is un experiment at-
tended by dangers. If surety bends
are taken and a loss occurs, the cc^n-
panies almost Invariably resist pay-
ment of the amount of the liability is
large.
If territorial warrants or the mu-
nicipal securities are taken, there is
always some dunger of the loss of the
securities. .
Bank Commissioner.
The appropriations mad for this de-
partment during the past biennnium
amounted to $5,800.00. The fees col-
lected and turned into the territorial
treasurer amounted to $4,535.00. The
department has been almost se f-sus-
talning during the period reported, the
appropriations only exceeding the
fees by $1,265.00. The law requires cer-
tain duties of the commissioner but does
not make a sufficient expense ap-
propriation for him to successfully
perform them.
The assistant bank examiner does
not devote all of his time to examina-
tions, as he is required to do office
work, but he could assist very mate-
rially in the examinations if traveling
expenses were provided.
The banking department of Oklaho-
ma is a very important one. It is con-
stantly Increasing in magnitude.
There were two hundred and flfty-
five territorial banks In operutlon on
the first of December. 1904. During the
past biennium there have been twe
hundred and eighty-one examinations
and it should not be forgotten thut this
was done with an expense allowance
for office rent, light and traveling ex-
pense of only six hundred dollars
($600.00) per annum. It is insufflcien.
If a bank closes its doors and there
has not been n recent examination the
department is censured. How u de-
partment with six hundred dollars in-
cidental expense ccount per annum
can examine 255 banks even once dur-
ing the year Is a " ard problem to solve.
It can not he done by one man. Two
men working the entlie time could
scarcely meet all requirements. The
banking Interests of the territory nr.
constantly increasing and if proper ser-
vice is rendered proper facilities for
promoting the work should be pro-
vided. The provisions which applied
when there were only fifty territo-
rial banks will not apply when ther.-
are two hundred and fifty-five and the
number constantly Increasing.
This is a matter which is submitted
for your most cureful consideration. It
deals with conditions in which the
masses of the people are vitally inter-
ested. Oklahoma is being filled with
banks. Almost every little villige has
a bank. The larger towns have many
of thein. These banks In the iiggre-
gat? have enormous deposits. A larg.
amount to this money belongs to the
farmers, the merchants, and Industrln'
classes generally. If thf. banking de-
partment protects these Interests (as
far as it can protect them) provision*
should be tyade for more frequent
examinations.
National Guard
Oklahoma maintulns a regiment of
Nutional Guard. During the two years
past marked Improvements have been
made In this organisation. The arma-
ment and equipment furnished by the
war department during the past bien-
nium assisted very materially In rais-
ing the stundard higher than it has
ever been before In the history of the
regiment.
It is the purpose of those who have
control of the guurd to spare no ef-
forts to make It compare favorably
with any of the organizations of like
character throughout the country. The
war department hus been liberal in fur-
nishing armament nnd equipment, but
the territory is required to make pro-
vision for general and incidental ex-
penses. A body of drilled troops in
every stnte and territory Is the policy
of the government, and to that end it
is working. By e very llbecal allot-
ment of arirj and e^^^'vuits the war
department Is building up o-faiiUzAtlon*
of citizen soldiers all ov r the country
which relieve the necessity of a great
standing army 'n the event of war th.*
government could call into action u
vast urmy of fairly well drilled citizens
in a very short time. But, in nddltior
to that feature of the situation, the
guard is a formidable police force in
case of Insurrection or any kind of
disturbance thnt might menace the wel-
fare of the commonwealth. It Is no*
the purpose of this department to be
extravagant, but it Is greatly to be
desired that sufficient provision be
made to enable the officers to maintali.
creditable armories and take care of
the property In a suitable manner.
Oil Inspection.
The Seventh legislative assembly
made some radical chang h govern-
ing the inspection of oils. The Invv
as it now stands provides for a stated
salary for the Inspector with an allow-
ance for contingent expenses; it also
provides for certain tee::-for deputy
Inspectors, and that the excess after
paying the deputies shall be turned
Into the treasury of the territory.
During the time that the new law
has been in operation the sum of $13,-
067.83 has been collected. The fees
paid to deputies have amounted to
$3,122.32. The balance, $9,046.ii has
been paid into the treasury.
The present law works quits differ-
ently from the one that preceded !'•
The former law was defective and dif-
ficult to enforce, but it Is b'lleved thut
the present law with a slight modifi-
cation will meet the requirements, and
be of Increased value to ihe territory.
The law is self-sustaining and in ad-
dition to that, the territory derives
considerable revenue from It. That It
has been a protection to the public
during the past biennium !« made evi-
dent from the fact that very tt'.*' com-
plaints have been urg&£ ag&lnft. O.m
workings.
I respectfully recommend ',/ju
fees of the deputy Inspectors be in-
creased sufficiently to compensate
them for giving th ir time to the work.
The deputies have not been receiving
the compensation under the law to
which they are really w'Jtied for the
services rendered. obj'tct cf 'he
law Is not only to pt-otect i f:* cc,r.*\ m-
er in the quality of the oil, but pro-
t ct against dangerous oiis beh.f plaObi
upon the market.
Doard of Agriouiture.
An act passed by the Sixth
tive assembly provided for the organ-
ization of a board of agriculture Un-
der authority of this act, on the 18th
of December, 1902, the board was or-
ganized, by electing officers and com-
plying with the other requirements
ot the law. The Seventh legislative
assembly made an appropriation of
one thousand dollars per annum for the
salary of the secretary of the board,
and eighteen hundred dollars for Inci-
dental expenses of the office, the ap-
propriation for incidental expenses to
be expended under the supervision of
the board. The office was opened on
the second day of April, 1903. Al-
though many difficulties huve been
encountered the board has accom-
plished much good for the agricultural
■•is well as general Interests of the ter-
ritory. Oklahoma is an agricultural
country.
Th? general agricultural Interests of
the territory are of gr at imHortf^e^
and it is to be hoped thai tits
of agriculture can be advanced and be-
come a department in the government
of the territory or state. With a de-
mand for udvanced ideas along agri-
cultural lines and new problems con-
fronting us every year, it is Imp ra-
tive that we prepare to meet the rapid-
ly changing conditions and "keep
abreast of the times."
The report of the secretary of the
board tallB attention to various feat-
ures (ft the work. It Is recommende-4
that provision be made to extend the
the utility of this w ork, bell, v lag thai
Oklahoma's future progiess will bs
closely associated with her agricul-
tural possibilities, and development
along that line.
Live Stock Sanitai/ Commission.
The live stock interests are of vifol
importance to the wealth and devel-
opment of Oklahoma. It has for sev-
eral years been apparent to stock rai*.
er8 as well as to all others conversavit
with conditions, that the quality of
stock should be improved, because '«>*
a constant decrease In grazing facili-
ties which renders the old time "b^s;
herd" an impossibility from thl? time
on.
The sanitary commission has rnan>
important duties to perform. It h's to
deal with cattle Inspections, glanders,
and other diseases among horses, and,
in fact! the general conditions effect-
ing the live stock interests of the ter-
ritory. In the event that this assem-
bly should extend the quarantine lin
around the territory it will be neces-
sary to Increase the field force of the
commission to at least seven inspec-
tors.
If ih lines are extended as suggested
it will be necessary to a restricted dis-
trict above tthe line and allow
cattle to be moved out of it
upon Inspection or any other reg-
ulations that may from time to time
be provided. There are portions of the
t«'-**ritory which should be quarantined
afe last southern cuttle,, but which are
no* 'nfccted and will continue so un-
til sot: "• ,ffectlve work is done in erad-
icating he Infection. It s necessary
to flist t"*event Infection from the out-
side by s^ict quarantine against south-
ern cattlr. then som- energetic sanl-
tury wo it Inside the Ilr.es and the? de-
sired restt ♦ con be reached. We van
never make Oklahoma tree from In-
fection, however, as long as southern
or diseased cattle are permitted to
cross our line with inspection as the
only safeguard. It may be that the
federal authorities have discovered a
remedy, but If so, It has not yet heen
sufficiently test d to insure it as a
protection.
The Attorney Generai.
The office of the attorney generai has
the period Intervening since the ad-
been overcrowded with woik during
amount of legal work directly pertain-
ing to the territory, but in my opinion
upon law propositions have been ren-
dered In response to requests from
county officials from other officials and
other citizens.
In addition to rendering opinions the
attorney general has been called upon
to iisslst in prosecuting violations of
the law in several of the counties, es-
pecially In cases In which the county
attorney has been disqualified or failed
to prosecute.
Again the attorney general has ap-
peared In cns" s of th  sir> *"rr.e court
in Washington In which the territory
has been interest*.