I recommend that an appropriation of $100,000 per year be made to create a sinking fund to be used in liquidating this debt. Continuing Annual Appropriations I wish to call attention to the policy of making continuing annual appropriations for the support of numerous public and private institutions. This financial policy has a tendency to keep up the expenditures of these institutions to the amounts made available for them by the appropriations regardless of their actual needs. The system does not contemplate the necessity of the various departments presenting their requirements to each succeeding legislature. In fact it may be reasonably assumed by those interested that the money will continue to be forthcoming without further legislative inquiry. There should be frequent reconsideration of all state appropriations, and they should be governed by the necessities of the case and the ability of the people to pay. The annual appropriations now in force under this system amount to nearly $8,000,000. This large amount suggests the necessity of a complete revision of these appropriations, and a reduction in the amount to conform to a more economical policy. Public policies with reference to the expenditure of money should be controlled by the same considerations as would affect men in private life. There are many things we may wish to have but are compelled to do without until we can better afford to spend the money. It is an unfortunate situation in our government, municipal, state and national, that in the expenditures of public money the financial situation of the taxpayer receives no consideration. It would seem that this is a time when public expenditures of every kind should be reduced to a minimum. With the people's income much reduced high taxes become a burden. There may be many things that they would wish to support liberally, at other times, but which, because of the general depression in business, they would now wish to forego. Water Powers The development and bringing into use of the water powers within the state is a matter which should receive. your careful attention. Most if not all powers of considerable magnitude are located upon navigable streams. As to such streams the public right of navigation is superior to any other, but the state has no proprietary interest in the water powers. They belong to the owners of adjacent banks, and it will be manifestly to the public advantage to have them improved and put to use in operating mills, factories and for other beneficial purposes. In the interest and for the protection of navigation it has long been the policy of the state to permit the erection of dams or other works in navigable streams only upon consent of the state, and this policy should be adhered to. From an early time and until about ten years ago consent of the state was freely given by numerous special acts for the erection of dams and the development of water powers, and a large number were developed, furnishing power to important industries and promoting the growth and prosperity of the communities in which they are located. For nearly ten years there has been no substantial improvement of water power properties because of the unfavorable legislation proposed and enacted during that period. In 1911 a water power bill was passed which declared that water powers belonged to and were the property of the state and contained provisions respecting the development and use of such powers so framed as to carry out that view. This act, being challenged before the supreme court, was held unconstitutional for the reason, among others, that it denied the private ownership of water powers. In 1913 the legislature enacted a new water power law which, while in form recognizing ownership of water powers by riparians, provided in substance that as a condition of granting to water power owners permission or consent of the state to the erection of dams necessary to utilize their property, such owners should agree in advance to surrender it to the state at any time after thirty years without receiving the compensation which the constitution provides that every citizen shall receive when his property is taken for public use. The hopes and predictions of the advocates of this law have not been realized, for not a single application has been made under the act for the development of any important water power. It is believed that its terms are so burdensome as to seriously impede, if not absolutely prevent, future development. Water power is best conserved by making use of it. It cannot be stored up and held for future use like coal. The power that is not used is forever lost. Legislation should be enacted which will encourage such use; but all the rights of the public, as defined by the courts, should be fully protected. Most of the undeveloped water powers in the state, which are the only ones to be affected by future legislation, are located in the unsettled portions of the state. Many of them are in the wilderness where for the present there is no public to be served by them, and where, for years to come, they must be used for private purposes, if used at all. While the latent power of numerous streams in the northern part of the state is being wasted because no one will invest in water power development under existing laws, settlers in that region, for want of a market, are burning the hemlock and other forest woods which might, by the aid of water power, be converted into paper and other products. A great many of our Wisconsin cities, in the central and southern portions of the state, owe their location and existence to water power advantages the use of which the law formerly encouraged. A like development of the northern parts of the state will be greatly hampered if the law, as applied to them, discourages investment. It would seem to be the part of wisdom to promptly enact a water power bill which will encourage owners to develop these powers and use them for the purposes to which they can now be put, making at the same time ample provision safeguarding the rights of the state and providing that when the state or any municipality shall require the powers for any recognized public use they shall be available therefor upon payment of the constitutional compensation. If they can be used to operate paper or pulp mills or other factories it will result in cities and towns springing up, as well as in giving to the settlers in our wild lands a market for their forest products and the produce of their farms. So long as the present system of serving the public with light, heat, power and other utilities by means of private corporations prevails, it would seem desirable to give to such private corporations the right to take over developed or undeveloped water powers with which to generate electrical energy for public use whenever in the opinion of the railway commission the public can be best served by so doing. Ample provision should be made to insure safety in the construction and operation of dams and other hydraulic works. Formerly franchises for the erection of dams and the improvement of streams were granted by special acts, but it seems desirable to pass a general law authorizing the Railroad Commission to investigate each application and grant permits or franchises under such conditions as the legislature shall prescribe. Too Many Laws Permit me to suggest to you that there is no demand in this state at this time for much new legislation. The legislatures that have assembled here in recent years were evidently possessed with the idea that every human ill can be corrected by statute. The last legislature seemed to be particularly active. It remained in session for eight months and passed 778 laws. Laws that are not supported by public sentiment or for which there is no general demand are but poorly observed; and non-observance of the law creates contempt for all law. This legislature can render the people a service by removing from the statute books a large number of laws that are useless because public opinion does not support them. People wish to be helped rather than hampered by government, and government will render them the best service when it confines its activities to those things for which government was created. In the past ten years this state has made a national reputation for so-called progressive legislation. Business men declare that we have been fighting business. The results of the last election clearly indicate that the people have reversed their policy in this respect, and they now demand a government that will encourage rather than hamper the development of industry. EMANUEL L. PHILIPP, Governor. The senate retired and returned to the senate chamber. MESSAGE FROM THE ASSEMBLY By C. E. Shaffer, chief clerk thereof: Mr. President: I am directed to inform you that the assembly has adopted and asks concurrence in Jt. Res. No. 2, A. ASSEMBLY MESSAGE CONSIDERED Jt. Res. No. 2, A. Was concurred in. RECESS Upon motion of Senator Tomkins The senate took a recess until 3:00 o'clock p. m. |