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AFFAIRS OF THE STATE ARE IN GOOD SHAPE. Governor's Message to the General Assembly Makes Fine Showing. A REVIEW OF HIS ADMINISTRATION. State's Finances and Her Public Institutions Are In Excellent Condition. SOME IMPORTANT SUGGESTIONS MADE. Recommends That State Taxes Be Removed From Land and Points Out Difficulty of Taxing; Invisible Property?Better Penitenitary and a Farm Needed?Improved Condition of the Military. Urges Popular Election of Senators. The message of Governor Tyler, which is printed in full below, was read in tbe two houses of the General Assembly upon their organization yesterday. The paper Is an exceptionally able one, and treats of State matters in a manner highly char? acteristic of the popular Executive, who will yield his high station to Governor ?elect Montague on January 1st next After the message was read by the ?clerks of the Senate and the House, it was ordered printed for use of the members. This was ordered in the House on motion of Colonel George C. Cabell, Jr., of Danville, who is regarded as the spokesman in tbat body, of both tiie present and tbe incoming Governor. On the "Senate side, Mr. Mciiwaine mudo the motion. The mcsSi-igc, which treats of all Stale matters in a very interesting: manner, is ! as follows: Commonwealth of Virginia, Governor's Office, Pfcmiber 4, 1901? To the General Assembly of Virginia: You have assembled as the representa- j lives of lhe people of Virginia to enact ?such laws as will best promote the public | good. lit is my pleasure to extend to you a cordial welcome to the Capitol and my duty to submit to you a report of the condition of the various departments of State government. This is a most important epoch in the affairs of the State, and the people ot j Virginia are to be congratulated that their interests have lx?on committed to such capable hands. Under a system of government such as we enjoy, a rep? resentative should peculiarly feel his ob? ligation. He holds his position, not by virtue of his birth or inheritance, but stands with a commission from a free and enlightened people, and should be bound by every consideration of honor and good faith to put forth his best efforts to pro? mote the welfare of the people who have committed their interests into his keep? ing. The best guarantee of securing faithful public servants Is for all the voters to participate in their selection, and the lively interest that has been manifested by our peo;ile is best attested by the Character of men they have sent to reprvsent them in the General ??e sembly. To me this occasion bas a peculiar sig niflcjincc. It is the last It is the last General Assembly that will meet during my admlnistrntion as Governor of the Commonwealth and the last one through "which I will render an official account of my stewardship in the high office which the people of the State committed to my hands on the 1st day of January, 1S9S. I have honestly striven to discharge tbe duties of the office to the best of my abil? ity, and. while no hum." ? being can "lay the flattering unction to his soul" that lie. has not mad-; mistakes. I have been sustained cy a generous and noble peo? ple, whoso kindness to me has ever been far beyond my deserts. 1 confess to keen satisfaction in the ability to report ? most gratifying and healthful improve? ment in the affairs and condition of our people, especially as shown In the various ?departments of State government during my term as Governor. The four years have been filled with rapidly changing and important events in our national affairs, and while the State's participation In these was re? ferred to in my message to the last reg? ular session of the General Assembly, the far-reaching effects of the policies that ha\-e been inaugurated, involving, as they do, the fundamental principles of our government, impose an additional duty on the State law-making bodies to keep constantly before their minds the basic theories of government on which our country has been built, and while keeping pace with the onward march of industrial and commercial development, use their best efforts to bold the ship of our national existence in the safe chan? nel of constitutional government. In our State, affairs issues of the grav? est importance to the peace, welfare and development of our State are. now en? grossing the public mind. Tlie neces? sity for changes in our organic law had long been recognized, and it was in obe? dience to this demand on the part of the people that a convention for amending and revising our present Constitution was called, and met on the 12th of June last, "Mid has been laboring most zealously to give to the people the newest and best Constitution that can be devised. It Is composed of the best and most patriotic of our citizens, and tbe confident hope can be Indulged that the result of their labors will be to give new impetus to the growth and development of our be? loved Commonwealth. As they have not yet completed their labors and as they have under consideration measures to be engrafted in our organic law touching most of the subjects that I should liring to your attention. 1 can only discuss them in a tentative way. basing my reasons on fundamental principles that have al? ways, and will always, have place in our Slate government. Male Finances. The first subject that should demand the attention of the people's represent? atives is the condition ?ind management of their finances by those charged with the collection and disbursement of their money, and close scrutiny into the laws that have been enacted for the collection of taxes from the people, adjusting as far as possible the inequalities that are found to exist?remitting where it is found to lay too heavily and imposing where it Is evident that any citizen or class of cit? izens are not contributing their just pro? portion towards the support of the nec? essary functions of an economically ad? ministered government. 1 am g'-?d to he able to say that the financial affairs of the State show a most gratifying im? provement in the last four years, and are now on a sound and healthful basis. The State debt, which had long been a source of annoyance to our people, and ?with the settlement of which I had ta "ken the deepest interest from the first agitation of the subject to its adjust ?jbaui .?? "iisii. when ? ?was honored by be I ing a member of the commission that finally settk-d and closed this perplexing j question to the satisfaction of the cred ? itors and on a basis that imposed no ad ? ditional hardship on our people, has been ! removed as a. subject for legislative con | sideration. | From the Auditor's report. It will be seen that the total receipts of the State : on the basis of thc present assessments ' amount lo ?3.445.50S.72. while in 1897 the I total income was $2,998.939.89. or an in? crease for the four years of $446,568.83. I During the eight years preceding, or from j 1?89 to 1SS7, the receipts had Increased I $400.251.61. only atout 520,000 more for the j eight years than for the last four. The ? revenue derived from real ostate in 1897 j was $1.203,817.16; in 1901 it was 51.274.143.86, ! or about 6 per cent, increase. The fev i enue derived from personality in 1S97 was | $377,733.72: In 1901 It was $438.283.64. or an i increase of about 16 2-G, per cent. One of I the best evidences of the improved condi? tion of our people is shown by the fact that in 1S97 $33.041.53 was derived from the 5 per cent, penalty on. taxes collected after December 1st, while in ' 1900 the amount is only $19.748.99. The expenses for 1S97 were $2,980,441.79. which, deducted from the income for that year of $2.99S.239.S9. left a surplus of only 51S.498.10. The expenses for 1901 were $3. P24.597.67. which, deducted from tho in? come for that year of $3,445,508.72, leaves a surplus of $420.915.03. The increased revenue was not derived from an increase tax on land, and the increase in expenditures were not for the ordinary running expenses of State government. The expenses of the State ? in 1897, exclusive of appropriations to tne eleemosynary institutions, institutions of ? learning, public schools, interest on the j public debt, r.nd pensions to tho old sol ! diers. amounted to $715.971.11, while in 1901 the expenses for the same purposes were $?4S.47S.~8. or a decrease of $67,492.73. I Thus it will be seen that, while the rev j enues of the State have increased 5146. ! 56S.S3 over 1S97. the expenses, other than i charitable and special appropriations, j have decreased $67.492.73. In 1897 the as I sessment on farm lands and buildings was | $160,942.80S. The assessment on town and city lots and buildings was $145.093.193. In I 1900 the assessment on farm lands and j buildings was $16S.S24.SSS. and thc assess ! ment on town and city lots was 5154.913, i 201. This shows the increase on farm ! lands and buildings to be about eight m ?? ? lions of dollars, derived chiefly from the j increase in the value of sul/urbnn prop | erty not included in city limits. The nine | millions on city lots and buildings is from I the legitimate growth of our cities. In '. some of which it has been marvelous. j it is remarkable how nearly equal is the ! \-alue of the farm lande and buildings ! with the town and city lots and buildings ; ?only about $14.000.000 difference?and ? when it is considered that lots and ? buildings in villages and unincorporated I towns are classed as farm lands and j buildings, the assessments arc about ; equal. ? ? 1 am sure there is cause for rejoicing I that we are able to show such a flatter ? ing condition of our finances. The State has met all current expenses, j including the expenses of the extra ses I sion of the Legislature last winter; has paid the expenses of the Constitutional j Convention, has given $170.000 to the dis i abled Confederate soldiers fan increase of $27.500 over the previous year"), gave an I increase of S21.000 to the public schools. put $435.500 to the credit of the sinking j fund. 56S.O0O to the credit of the literary ? fund and has on hand at this time $705,000. As to Taxation. The proper exercise of the taxing power I of a government has always been the i most difficult of all its functions. Aside j from the many problems connected with a proper adjustment of the laws of a State where the population is composed of citizens who are engaged in a variety of trades and business, great difficulty has always been experienced in having the laws enforced so they will bear on all the citizens even in the manner con? templated by their iramers. Xo more important question can be called to your j consideration than the laying of the taxes I of the Commonwealth. This is the vital I and sensitive question which puts to the ? test your sense of justice, and calls into ? play a wise and equitable provision for j the support of government. It is the question above all others that has caused I the dispensions and wars of the world, j and has been used as an engine of oppres j sion and favoritism wherever the races | of men have been least enlightened. Un ; just taxation is the very embodiment of | tyranny, while just and proportionate tax? ation is the product of the highest Chris? tian civilization. I beg of you to ap? proach this subject uot lightly nor indif? ferently. One fruitful source of inequality is the collection of taxes from what may be called "invisible property." From the very nature of this class of property the collection of the just and- proper tax is largely dependent on the honesty of the I citizen, and where this is not present can j only be effectively reached by the cnact ! ment of such drastic laws that the honest ! citizen rebels against their enforcement. It is true that some men otherwise hon? est and correct seek to justify their eva? sion of this duty to their State on the ground? of the low rate of interest de ? rived from their securities and the high ? rate" of taxes imposed for State and mu? nicipal purposes, and also In some in? stances tveauso it represents some visible | property which has already been taxed. j There is no quesction but that those men ? who belong to the second class men j tioned have grounds for their complaint, ? and it is the duty of the law-making j branch of the government to hear their complaints and grant such relief as can ! be given, and after this has been done the position that they then might take for evasion would be dishonest and untenable. This is especially just, because the hold? ers of lands and otficr visible property have no redress^ even though their prop? erty docs not yield a sufficient income to meet tho taxes levied, and in conse? quence they seek, or are charged with seeking, to evade the taxes imposed on them by resorting to means to ha\*e them assessed below their true value. I jvaa.,?, to make no indivious comparison against the holders of "Invisible"? prop? erty in favor of the owners of the "vis? ible,", for human nature Tb hot changed ? by the "character? of. Ithe ^property owned. It-is due to the. Increased-opportunities afforded th? holders'of '"Invisible'."'; prop? erty that a larger number t>f this.class evade their Just taxation; This'Is 'evi? denced by the great discrepancy between the amount of "invisible" property re? turned for taxation as compared with thc amount of, "visible." How to adjust these InequaUties is indeed.a problem, and while this is a subject' that naturally has received the attention of the Constitu? tional Convention, and in cons?quence leaves it open so far as legislative action is concerned, still as they will necessarily leave a large discretion to the Legisla? ture, I deem it not inappropriate to bring this matter to your attention. Land Ass: semente. Another most perplexing question .ever disturbing legislativo bodies is the in? equality of land assessments. This is largely due to the fact that the assess? ment is made for the whole State, by men of each county, who, even though they were perfectly impartial in their "judg? ment, would De more or less influenced by the different views which they take of a desirability of a high assessment and a low tax, or a low assessment and a high tax. To meet this condition, or at least to remove It as a source of justifi? cation for thc holders of "invielbie" prop? erty for failure to return their property. In my opinion it would be best, when the constitutional restrictions are removed, for the Legislature to arrange for suffi? cient revenue to be derived from other sources, an I believe It can be, to meet the expenses of government, and cease to tax real estate for State purposes, and leave this class of property to the coun? ties and cities in which they are situated as the sources from which to derive their revenue. In this way alone I believe can the question of.adjusting the inequalities of s^sessment which now exists in differ? ent portions of the State be remedied. The reasons for the desirability of this change are so manifest that they need hardly be stated. In th?. first place, even though it left the . lands unequally as? sessed in the different counties of the State, as they are now, still it would re? move all grounds of-complaint on this score because the revenues of the State would be in no way affected. There are other reasons of great force that can be urged in favor of this system; among them might be stated that it would cause the real- estate to be assessed at an amount nearer its true? value in all the counties and cities of the State. V?'hi]e on this subject of taxation at? tention is naturally drawn to thafimpos ed on the railroads and other corporations of the" State, for while all good citizens recognize the great public benefits de? rived from thc encouragement and de? velopment of their railroads and other corporations, and no one in the State is more willing than myself to lend them every just assistance to promote their welfare, yet experience has demonstrated that by reason of the great power they have the capacity to exercise in the po? litical affairs of a, country, there is a danger of a constant tendency on their i part to avoid their just proportion of the | l/urdens of government. They enjoy great privileges and possess rights not common to the individual citizen, and in consequence should be required to re? turn to the State a just share of the ex? penses of government, based on the value of their property as well as on the \-alue of the franchise or privileges that have been given them bv the State. In a report which G had the honor to submit to tho Legislature as a "minority report" of the Roani of Public Works, and which is printed in the ?Tournai of the House (session 1S99-1900, Document Xo. 4). and in which I suggested different sys? tems for taxing the railroads, it will be seen that the tot^l assessiramts on rail? roads, other than street-car lines, was S52.?00.5O6, while it appears that these rail? roads were earning 6 per cent, on $107, 506,541. and that several of them were earning IS to 30 per cent, on the amount of their assessment. The total assessment on railroads, as well as the Increase in the value of their properties during the past four years, is shown by the following table: Totai Ass'm't. Taxes Paid. Net inc. Tax. Total Tax (40c. on ?IOO-I 1897 .??S.TSD.O^ 02 $215,156 29 1898 .54,084,823 46 216.3S9 60 1899 . 55.459.454 09 221.S3S 12 1900 .56.582.345 07 226,339 OS 1501 ..?.. 5S,S95,363 SS 235.5S1 GS (on same.) 1897 . J3S4.00S 78 $3,840 06 $218.996 30 189S. 637.140 51 6,37141 222.711 01 1S99 . 1.340.001 3S 13,400 00 235.23S 12 1900 . 2,672,498 34 26,734 98 253,054 61 1901 . 2,901.270 16 29,012 74 264.549 41 It will be seen that while the total in? come of the railroads has increased from $3S4,09S.1S in 1897 to $2,901,276.16 in 1901, or about eight hundred per cent., the total taxes they paid in 1901 is only about 20 per cent, more than they paid in 1S97. It must be borne in mind that the in? come here shown is after they have de? ducted all expenses and interest on all bonds, and that frequently the amount of these bonds on which interest is paid is four or five times the amount per mile the road is assessed for taxation. The real increase on the assessment in the past four years is only a little more than five millions of dollars, which is very small when compared with the enormous increase in the incomes of the roads dur? ing that period. TABLE OF RAILROAD OPERATIONS. 1897 Gross receipts.$20,529,963 4S Cost of operation and repairs.. 15,494,292 65 Receipts less operating ex pensee and repairs. 5.076.04S 55 Interest . 5,804.721 12 Net receipts. 3S4.00S 7S 1901 Gross receipts.$2S.714.517 SO Cost of operation ?and repairs.. 19,779,613 62 Receipts less operating ex expenses and repairs.J_ 9.024,S60 02 Interest . 6,235,01*9 22 Net receipts. 2,901,276 16 Increase. Gross receipts. $S,1S4,554 32 Cost of operation and repairs.. 4.2S5.320 97 Receipts less operating ex? penses and repairs.-3.948,811 47 Interest. 430.2SS 10 Net receipts. 2,517.267 3S This table shows an income for 1897. after deducting operating expenses and repairs, of $5,076,04S,55 on an assessment or $53.789,622.02, or about 10 per cent. In 1901 the income is $9,O24,S60.02 ?*? an assess? ment of $5S,S95,363.38, or nearly 16 per cent. In 1S97 the railroads in the State showed an actual loss, after deducting operating expenses, repairs and interest, of $769, 050.29. While in 1901 they showed a clear profit, after deducting operating expenses, repairs and interest, of $2,699.S94.96. or a' gain of $3,46S,?S75.:i, and yet the increase in the total amount of taxes paid by them, including incomes, is only $45.59S.ll. or about 20 per cent, as I have stated. This shows a steady and rapid increase in the value of the railroad properties of the State, and it may be that some plan copld be devised, either now or at some time in the near future, by which the State can raise sufficient revenue from the railroads and other sources to release the tax on real estate for State purposes, or if the present system of taxation is continued and the revenues continue to show the relative increase they have for the past four years, the rate of State taxes ?ani and^hould be. materially re? duced. ' - The Pablic Dibt. The total' debt outstanding is:. _ ?. Century bonds.-,.*?&ffi8 Riddleberger bonds. 6.W.w4 16 Schools and college. 2,466,455 S5 ' ' J26,826,2S0 10 Of which the century, and Riddleberger bonds, or $24 359.S24.35, bear interest at the rate of 3 per cent., and of the 52.466.455.85 held by the schools and colleges $2,383,65o.5o receives interest at the rate of 6. per-cent., and $82,800 interest at the ratei of H per cent. per. annum. To meet tho interest upan this.Urge debt, it will require here? after $861.256.05 annually. The promptness with which this interest has been-met. in the past, the legalizing of investment of fiduciary funds in the State jjecuriUes by act of Assembly, and the confidence in the honor, integrity and future prosperity of the Commonwealth have ? enhanced the value of virginia Stato bonds- until they have reached a par value and are sought after.in all the markets of this country. The market value of th&so bonds four years ago was 69 to 70 cents. Our own people have in? vested largely in these securities, and it is hoped they will eventually absorb the whole debt. Bonds now held by the literary fund, the interest on which is used for the pay? ment of salaries of city and county su? perintendents of schools and expenses of the Department of Public Instruction: Amount to.$1,747,527 28 There are'held by the schools and colleges ..:..... 2,406,455 85 There are held by the com? missioners of tho sinking fund.. 1,111.500 00 $5.325.483 1 If this is deducted from the total amount of the debt it leaves outstanding $21,500,796.07. The Board of Sinking Fund Commis? sioners havo acted prudently and wisely in the discharge of its duties, and during the lnst four years have purchased and now hold Slate bonds to the amount of $1.111,500, part of which were purchased with the dividends from the stock owned by the State in the Richmond, Fredericks? burg and Potomac Railroad and part from such surplus funds in the- treasury as in their judgment might be safely diverted to that end. During the past fiscal year $4"?5.?00 of this amount have been pur? chased. I would recommend that all of the bonds held by the commissioners of the sinking fund be cancelled and permanently re? tired as a part of the State debt, and that the bonds held by the literary, fund and 'he schools and colleges be treated as sep? arate obligations, and appropriations be made to meet th? interest on the same as amounts allowed to educational work. Then, our public debt would be in plain and practical shape, easily understood, and the true amount held bv the public could be seen unmixed with the school af? fairs and the State get full credit for amount given to the cause of education. The General Assembly has on several oc? casions extended the time for the fundintr of the old securities which had not been funded under the act of February 14.'lSS2. of February ?0, 1892. There are still out standlns: of these bonds which have tax receivable coupons attached? <~??*?? coupon bonds. $45 600 00 "Ten-Forty" coupon bonds ...... 26.800 00 $72.400 00 To avoid any nossible future trouble as to these as well .-<S to do justice to the creditors of the State-, ? would recoin-1 -? end that the Oeneral Assembly grant a further extension of the time within which the holders of these bonds may fund them into new securities. The Board of Fisherler. I point with especial gratification to the report of the State Board of Fisheries, ihe results accomplished by this Board demonstrates that the State has at last adopted a plan that is not only the best from a 'financial standpoint, but one that is eminently-'Wisa and just for the man? agement of her great fish and oyster in? terests. As. I said in my last message to the Legislature, "If Virginia can always be fortunate enough to keep the positions on such boards from being the reward of partisan political labors, we can always expect satisfactory results." The last Legislature appropriated $5,000 to difray the expenses of resurveying the oyster-grounds. This work has been com? pleted in York. Warwick and Isle of AVight, and some work has been done in several other counties. Three thousand nine hundred and fifty-two dollars of th*,? amount appropriated was expended up to October 1st. It has been shown that in many in? stances the renters are paying the State taxes on mtich less number of acres than they actually hold, and the gain in the Increased number of acres thus discovered increased number of acres thus discovered will compensate the State for the ex? penses of the survey. It is very evident that the hope of an increase in the income must be from the planting-ground rather than from other sources. The gain last year over 1900 from the planting-ground was' $8.192.22. while the increase from tonging was $1,737.02. and from dredging, fish-nets, etc., there was a small decrease. During the three and a half years of the operation of the law the net revenue? to the State to October 1. 1901. was $103,272.72. which is an average of $29.COO per year, ?xhile for the four years preceding its en? actment thc average annual net revenue was onl..? $3.686.32. The last year under the old system showed a loss of $1.808.23. The steamer Chesapeake, which was the largest of the oyster police-boats, was sold and a smaller and much more suit? able boat purchased to take its place. All the other boats have been overhauled and made as good as new. The costs of this new boat and of these repairs hnve been borne by the running expense fund. The State now owns three steamers and one schooner, which are run at a third less cost of men and fuel than formerly, '"ithout accident no additional outlay will be required for years, except incidental repairs. I hone the Legislature will observe the recommendations, and as far as possible grant the requests made by this able and efficient Board. educational Institutions. The unusual length this message has al? ready assumed prevents me from devoting as much space, as I desire to show the advancement and improvement in all the public institutions of the State during the past four years. Early in my administration I ?.dopted. as far as possible, the policy of distribut? ing the appointees on the different boards among the various counties and cities, and I have so far been able to carry out my plan that at present only seven or eight counties have failed to receive rec? ognition. This idea has met with favor and has been highly approved by.the dif? ferent managers of the Institutions. . Notwithstanding the appropriations for the maintenance and support of these in? stitutions are but little more than they were four years ago. all show a very sat? isfactory increase in usefulness. There has been a large Increase in the number of students at the educational Institutions, and the different State hospitals show an increase in the number of patients cared for. THE UNIVERSITY OF VIRGINIA: - The University has increased its number of students from 4SS In 1S97 to 682 in 1901. or about 33 per cent. The income from all sources has increased during the same time $29,057.95. The total income for the four years -was $562.146.74. of which only $190.000 was appropriated by the State. The finishing work was put on the new buildings which were erected in place of those destroyed by fire in 1S95. and other buildings have been built and improve? ments made costing $6S,000. about one-half of which was from special bequests. VIRGINIA AGRICULTURAL AND ME? CHANICAL COLLEGE AND POLY? TECHNIC INSTITUTE. The increase in attendance of students has bcfiA o'?..*,. ses i*, v?a ta 450 ia 190L and this will be Increased by 16 or 20, or about 50 per cent, in the aggregate. The General Assembly.' at its last-ses? sion, allowed this Institution to borrow $100,000, which has-been expended In erect? ing a number of needed buildings, euch as dormitories, a science hall..shops, cold storage plant, professors' houses and cot? tages, while larg? additions have been made to the farm, herds and flocks. The graduates from this Institution have rapidly won distinction in scientific and Industrial lines, and are In great demand. The number of students will be greatly increased by additional dormitories. VIRGINIA MILITARY INSTITUTE. While the State has not been as liberal In its appropriations to' this as it has to the last-named institution, the appropria? tion being less by $5,000 in 1901 than It was in 1S97, yet it makes a favorable compari? son in advancement. The number of stu? dents has increased from 205 in 1S97 to 246 in 1901. The demand for graduates has been larger than it has.been able to sup? ply. Although the'appropriations have been limited, valuable improvements have been made, and the advancement is most gratifying. DEAF. DUMB AND BLIND INSTITUTE. The number of pupils enrolled in 1*97 was 170; in 1D0? 210, while quite a number have been denied admittance owing to the lack of room. A n<?w dormitory build? ing, school-rooms and a laundry have been added to. meet the increasing de? mands of this school, which is doing such a noble-work. An appropriation of $15.000 will be asked, and I earnestly recommend its favorable consideration. WILLIAM AND MART COLLEGE. This is the only college in thc State that admits no compromise in the re? demption of the pledge to the State from its graduates, that they will teach two years in th? public schools. This require? ment no doubt tends to reduce the num? ber of students and retards its numerical development. At present there is an en? rollment of 159, an increase of nine over the previous year. The condition of the college has improved very much during the last four years, and many convenient and necessary attachments have been added. Through private donations a handsome gymnasium has been erected and the buildings supplied with a fine water system. STATE FEMALE NORMAL SCHOOL. This is the only school the State main? tains for women. It was established in 1SS4, the object being to educate and train teachers for the public schools. In the past four years the school has made constant and noteworthy progress. The enrollment has increased since 1897 from 250 in the normal department and 100 in the practice school to 306 in tho normal and 103 In the practice, while many wtre turned away owing to lack of room. The Legislature, at its last session, ap? propriated $20.000 to enlarge the dormito? ries and for tho erection of a gymnasium, a laundry and steam plant. Thes?? im? provements have all been made, and I cannot too highly commend the efficient work of this institution. MEDICAL COLLEGE OF VIRGINIA. I regret that want of space forbids my calling attention to this institution as I would likT. I can only give a hurried re? view of its work. In 1897 there were 1S9 students and 41 graduates: in 1901 2it stu? dents and 53 graduates. During the last four years the State has appropriated to 'his institution $1S,000. and for the same time tho college has added property and improvements, which is deeded to the State, to the attioun: of $1S.713.92. During the Spanish-American war the hospital was thrown open for the treatment of the sick and disabled soldiers of the State, and J91 sick and injured men wer?; treated virtually free of charge. The col? lege pursued the same policy during the civil war. Many of the poor of the State are. treated free at tho college hospital. VIRGINIA NORMAL AND COLLEGI J.TE INSTITUTE. This is a State institution, devoted to the training of colored teachers, and is doing most excellent work. It shows a constant increase In tho number of 6t tendants and graduates, the former be? ing from 310 in 1897 to 342 in 1901, while the graduates increased from 30 to 41. Ths Public Schools. The condi<ion of the public schools is most gratifying and encouraging. Dur? ing th=> four years of the present .-.dmin istration the appropriations tor public schools have increased $162,2.35.27. The present enrollment of pupils exceeds that of 1857 by fully 7,000; about 300 new schools have been opened, and the value of school property has increased more than a half million dollars. In many communities school libraries have been established, and everywhere the people are taking more interest In the success of the pub? lic-school system. The improvement in the various hospi? tals for the insane is a source of great pleasure to me, and I am sure will be cne of gratification to you. As ?was shown in reference to our edu? cational institutions, the State has de? rived a large percentage of increase in service with but little, if any. additional expense. The South-western Hospital had in 1S97 361 inmates and in 1901 US, an Hospital had S22 in 1897 and 967 in 1301. 12 per cent, increase. Thc Eastern Hospital had 525 in 1897 and 557 in 1901, an increase of 5 per cent. The Central Hospital had in 1897 1.072 and in 1301 1.195, or about 11 per cent, increase. Tho reports of the superintendents of the various hospitals show that there is not a single insane person in the jails of thc State who is kept thero from a lack of room, and with the possible exception of some who may be waiting, the legal steps necessary for their commitment, the jails are clear. The Auditor's report shows that we paid $26,013.91 in 189!) for support of lunatics in jails and in care of individuals. ?\ll the hospitals have made improve mente in their property, notably the South-western and the Central. The for? mer has added a new wing to its build? ings costing $12.'?00, and Central has made an addition to its dormitory costimi $25, 000, while the other institutions have made Improvements to their buildings. In my opinion, it would be the part of economy for the State to establish sep? arate places for the care of the idiotic and the hopelessly insane patients, thus leaving more room in the wards of cur asylums for the treatment of those whoso cure can be effected. "ihe EpiKptics. It is not necessary to present extended reasons for the establishment of separate institutions for the dependent epileptics, most of whom are now being cored for in our State hospitals for the insane. While there is sufficient room now to care for all the insane, we must expect a con? stantly-increasing demand for more space, as the per cent, of insanity Is con? stantly on the increase. A building to accommodate dependent and helpless epileptics ^ouid be erected and operated at far less cost than- buildings to accom? modate the same number of insane. It seems to me, therefore, that the State should arrange for the erection of such a building or buildings and thus provide room for the treatment of those whose minds become affected and why should be treated with all the promptness possi? ble. Thfse people should be kept tu hemselves. It is an admitted fact that epileptics should neither be placed in poor-houses or hospitals for the insane. If it should not be deemed advisable to have a separate establishment elected for the epileptics, sufficient space might bo apportioned In one of the prisent white institutions of the State ard all the epil?ptica from the other institutions transferred to this one point. A plan of this kind has been in operation at the Central Hospital, at Petersburg for the colored, where the female epileptics have been kept separate . from the other in? mates, and recently the efficient Board of Managers of that institution have ar? ranged to separate the male epileptics, and practically all'will be cared for sep? arateli". This system has proven .benefi? ciario both classes of patients, and is In every way p est satisfactory. Some States h?ve established colonies of this kind, and have farms where not r???H^ ? ?f* but inc?rable patienta are received. Many such patients are cap ?jee?.?erfprmlag. s?me kind of manual labor, and could.and would contribute to their own support. Th? counties could arrange to.have many or their Incurable patients transferred to this institution by th? payment of such proportion of the ex? penses as would be found just. A report was mado to the Legislature at tho session of 1S97-'5S by a. committee appointed at the session of 1??5-'95, and much valuable information can be got? ten from the report, to which I respect? fully call your attention. A bill was also presented on this subject to the last ses? sion of the General Assembly, and passe?! the Senate with only four negative votes. I would also respectfully recommend that the number of mcrrbers of the boards \ bo mado five Instead of nine. I am or the opinion? that this would be a good policy tn regard to tho boards of educa? tional institutions as well as th? h spitals Penitentiary Matter. Your attention is invited to the report of the Superintendent and Board of Di? rectors of the penitentiary, wherein the fiscal affairs of the institution are shown to D in a most satisfactory condition, and it gives me pleasure to commend the work of this faithful and efficient Board. 1 Notwithstanding the continued dullness in the shoe trade, thus lessening the re- I celpts from that source for the last two j years, and the increase in the cost of all ! supplies necessary for the maintenance of the institution, it will be seen that th?* ' ' net earnings for the last year amounted ! to $43.063.71; which is an increase over the I year ending Oct. 1. IS 6. of $12.957.07. the ! first year of my administration. As is ! welt known, the chief revenue is derived j from hire of convicts to the Davis Boot and Shoe Company. This company has been fair and liberal in its dealing with the 3:ate and has been Jast in its demands upon tho convicts. "The sanitary arrangements at the insti? tution demand improvement, and if the penitentiary is to remain where it la at present located additional cell-room is imperative. I had the honor to recom? mend to the extra session of the Legisla? ture, which met in January last, the ap? pointment of a committee to take into consideration th? whole question of en? larging the penitentiary or the propriety of removing it elsewhere. I presume the Legislature will have valuable sugges? tions from this committee, and a com? mittee of the Constitutional Convention has also had this matter under considera? tion. The more I investigate, the question the more I am convinced that it would he best for the State to sell the present site of the penitentiary and buy a large tract of land on which to erect buildings. If from any cause the convicts could not be kept at work In the shops here and were forced to remain in idleness the con? dition of affairs would be appalling. If the penitentiary' was located on a farm of proper size and the convicts should be thrown out of work in the prison they could be at once put to profitable and healthful employment of the farm. In addi? tion to this, even if the contract system is continued there are many times when the shops could be worked to mutual ad? vantage, as at different times the number of convicts required in the shops and on the farm varies. . The present peniten? tiary property could be sold to advantage, and new, clean, uninfested modern build? ings erected. Cay a Great Farm. I therefore earnestly recommend the purchase of a farm of not ?ess than four thousand acres in the vicinity of Rich? mond, and the erection on it of new and suitable buildings. This farm might be made, as the present one has been to ? some extent, a model one for -he advan- I tage of the surrounding section. If it is j not deemed best to buy a farm of this ? kind and make the changes suggested, ? ? would recommend to you. as I have to I former Legislatures, the purchase of land j in'the vicinity of the present farm. The amount paid in rents for land that has ? leased for several years amounts~to much j more than the interest on the amount for which the lands could be bought; besides, there is no timber on the present farm, which is a great disadvantage. The high water and rainy weather in? jured the corn and destroyed a large area which had been planted, and totally destroyed a field of wheat that would have yielded about 1.200 bushels, and yet despite these drawliacks the farm only lacked about $100 of being self-suuporting A pumping outfit has been put in at the farm at my suggestion, and great benefit has been derived from the abundant water supply thus afforded. It contributes to the health and comfort of the prisoners and gives additional security to the build? ings. Conditional Pardons. The conditional pardon sy-tem. which I had the honor to recommend to the Legislature of 1S07-'D3, continues to worst satisfwactorily. It is estimated that the cost, direct and indirect, of the crimina, population of the United States per an? num amounts to something like S2.S00 per capita. Hence earnest efforts are be? ing made in all the States to devise some means to reform the criminal classes. Un? der this conditional pardon law a prison? er is given the privilege of applying te> the Board ot Pardons, ^ho in turn make their recommendations to the Governor, when the convict has served half his term and kept the prison rules for the previous tw years (if he shall have served that long?. As an additional safeguard, the practice is for the judge and Commonwealth's at? torney of the county in which the pris? oner was convicted to be consulted. It deemed meritorious, the prisoner is turn? ed out on the condition that h* shall not again violate the penal laws of tho State. A large percentage, perhaps three-fourths. of the prisoners have hail no moral train? ing, and under this law they are made to realize, for the first time, that good be? havior brings its reward, and a curb is thus put on their passions and they learn to control themselves. The result is that they make better prisoners, and when turned out on condition that they behave themselves, they make better citi? zens. Under the recommendation of the Board I granted conditional pardons to 343 pris? oners during tho past four years up to October 1. 1901; a few more will be addod to this list during my term and I hav.? released something like a fourth of this number from the penitentiary and jails on similar conditions, which I imposed of my own motion. Out of this who'.c number only three prisoners thus released have returned to the penitentiary, and oniy one reported as arrested who was re? leased from the jaiis. The percentage of those returned to the penitentiary f?" second and th:rrt terms who serve ou', their full time has been from S .to 10 per cent. It can readily be seen that if we have reformed by this system only 8 per cent, on the 400 that have been re? leased, or 32 prisoners, and these estimat? ed to be an expanse to the State of $2.500 each, we have made a saving of $80/00. to say nothing of the moral influence exerted. The success of th" conditional pardon svstem has been largely due to tho careful and efficient manner in whreh the law has been administered by the present Board and too much cannot be said in commendation of their work. Reform scboo t. The Laurel Reformatory for white boys and the Negro Reformatory for colored are both doing splendid wok in giving th? boys committed to their care the benefit of the moral training which they have not received, and upon whom such an evil influence would have been es<.rttd If thty had been Imprisoned in the penitentiary and jails with hardened criminals. It has been my policy to release from the penitentiary the boys who had been committed there on condition that they serve .the saine'time, in the reformatory schools.. and in many cases it has been of great benefit. The'Lanrel Reformatory was established' in 1S90. There have been discharged from It during the past year 72 boys, and I'M are now kept there.' The-Negro Reformatory S.hool was e#? tabjlahed September, '.?St*??. There hav? been committed to It since It was organ? ized 133 boys and one 'girt. The State'* quota (100) Is now in the school, and three me/re.are ?awaiting- vacancies. Ther? have been discharged from the school? either because o?. expiration of sentenc* or because they were deemed sufficientlr reformed. IS boys. I am of the opinion that it would gre.-ttTy aid in reforming the boys committed to these schools If ' the s"-*sten. of Indeter? minate sentence was adopted. I*, ?is ha? been said, the criminal population cost? $2,500 a year per capita. It Is certainly im? portant when the State undertake? te reform th?. youthful criminals that It b? done as thoroughly as possible? ?and the Board and managers are the proper one? to Judge; of such matters. I respectfully renew the recommenda? tions I have made on several previous oc? casions in regard to the necessity for re? pairs to the Capitol, and urge upon th? Legislature the importance? of having th? repairs made as eartv as possible? To lose this h'stoTlc building and the almost priceless statue of **Va.?-h!r-ston which it contains, would be an irreparable lose to the State. Oreeoe-rvilie Lyachin-;. The order of our Statt? has been gn?J. and it is a gratifying f.act that the pre? valence of th.at menace to civilization? mob law?has been not-tbly less. With th? exception of one or two localities the peo? ple of the State have been law-abiding and peaceful. One case, which from th* public notice it received and from th<? flagrant manner In which the law val violated by the mob. perhitps deserve? mention. On March 23. 1G-00. the Sheriff of Greene?, ville county made requisition on me toe military aid to assist him In protecting two prisoners in his custody from a mob that was threatening to lynch them. Tn conformity with his request, and in obe? dience to law. I sent Company ? of th"? Richmond Blues, to Emporia, "the country seat, at the earliest possible moment, and the soldiers responded with eommend.ah!? promptness to the call. On my order. Major Sol Cutehins took command. Tha soldiers arrived in time to prevent the lynching; and thf-turh the people were considerably excited had the situation well in hand, so much so that at 10:40 G. M that night the services of the soldiers were deemed no longer needed by the sheriff, who Issued an order for them to return to Richmond. This order was signed by the sheriff, as required by law, ?and as an additional precaution was ap nroved by the Judge of the connty. Though the train was in reading???? to re? move the soldiers, they were kept at Em? poria as a purely precautlontry measure, with tho intention of withdraw i :i?r th??m at daylight. During the night there were evidences that the mob, which was I thought had dispersed, was ajcaln gath i ering, and the sheriff summoned the sol , dlors to his assistance. revoking the or I der for their discharge, and also askinsr for additional troops, wheh I at once | proceeded to put in readiness; in fact, hid ? them on the train and started to th* scene of the trouble. After consultation with the Judge and other prominent citizens of the com? munity, the sheriff decided that the sol? diers were a menace to the situation, ?and th.at their presence but excited the people, and that he could best protect the pris? oners with civil guards. Accordingly at 11:10 P. M. Mnjor Cutchfns wired me that twenty-five deputies had been sworn In. and the troops were relieved from duty. Everything wns apparently quiet at th'* hour. At 7:3<i on the momin??- of th? 24th he wired me: "We will soon he d!??" char?r??d: without protection the prisoner will be lynched to-night. Shall I obey sheriffs order and leave?" She iff Respons ble. In view of the statement by trie sheriff. whi??h was concurred In by the judge and ?approved at a meeting of the most promi? nent citizens of thc town, that the pres? ence of tho troops acted to excite th? mob, and that they could best be con? trolled by civil guards. I felt at first soir.fi doubt as to what course of action I should or could under the law pursue. After investigation of the. laws sovern ' Ing tlie militia In such caaes, and having ? in view one of the cardinal principles of our Bill of Rights?v!?-.. that th?-? military | -?hould bo held In strict subordination t? I the civil authorities?an?l havin-? no re? | son to doubt that, the sheriff was com? j peter.t to dlscharg?? the duties of hie of? fice, and that being more familiar with | the people of Grcenesville county than I Major Cutchinj?. his opinion as to how they could be best managed was entitle?! to equal If not superior weight. I wired ? Major Cutehins as fo'lows: "The sole j responsibility is on the sheriiT. If he 1 orders you to withdraw you can do noth ! tng but obey. We have done everything poss?:b!e to uphold law ar.d prevent moti violence and are still prepared to render any aid necessary." While this nplnlon wns more or less ? hurried one. suls'quent Investigation ha? confirm?! jny belief th.at this was th only course I had the authority to pur? sue. An examination of the Journal of the Senate of l?*J5-'0*5. page ll?"-. will ?kow th.at my predecessor was confront???! with almost the identical condition of affair??, and as the T^Ki-'nttire rn,? then In session made It tha sub!?cct of a' special message to them, requesting that the authority of tho Governor in such coses be extended I and made plain. He said in part: "As the law stands now, the sheriff of ? any countv or M.avor of a city only can ! ca?! into sei-vice the military in case* <?f I brea~hes of the peac?\ tumults, riots or resistances of law, or imminent danger thereof. The Executive has no such power. "Wns it intended by the law-mak? ers to subordinate the power of the Gov? ernor to the wil!. caprice or neglect of duty of the sheriff? Suppos there Is a riot, or imminent danger thereof, and ! the sheriff or mayor is in .?vrnp.-irhy with ? the rioters, .-sr is Intimidated bv them or j crtotured by th-m. and *-<--*!l not or cannot i call for h-nope: or scepose h's judgment : is at fault, or h?? ?s incredulous ?and re ? fuse?? to rect-1-.nise the fact that there. | Is flange- must th- Govern/*?- char-red to : take enre that the law-? Ne faithfully ex? ecuted, stand with h'.s hands tied and j dumb?" Too Often Called. Yet in the face oi this strong presenta : tion of the f.octs that might arise under ! the existing '.aw. a.-.d In support of the ! amendment which he suggested to the ! section of the Code relative to this mat I ter. which would give to Che Governor ' p-rsver to act ir.depcndntly of the sherifT. j the Senate refused, by a voce of 20 to 4. ! t?i cha.a?e the iaw, thus* showing that In | the op.nion of that body the dangers that I are to be anticipated from granting th* ; Executive too free use of the militarv were paramount to any t.iat might come I from the failure of the stteriffe or mayors to f-dthiti-Iy ar.d honestly discharge their duty, and though the facts In that im? mediate case were present and urgent. I they adhered to previous enactments on I this subject. I am cor-etrained to say that In my ! opinion this d??cision of th??i Senate was ? wise in view of all the circumstances. ! While In common with every good citizen j of the State I felt the reproach that was ! brought upar, the State by the action of | the mob In lynching these two men 'm ; mediately after the withdrawal of the ; troop??, still I would not be willing to de : part from that principle of government , which has rectved the sanction of so ; many wise and patriotic founders cif our ! republic and the violation of which they j made one of th? indictments against I King George III., "that he affecta to make ; the civil authorities subordinate to the ; military." It would unqu?-etiOnably fee j putting in the Governor's hands power that might be'atnised. and as it Is the ! !nstru?-tion of history that all d?M?-p?-"t.?? ? have arisen to oppress the people throagh ; the use of military, it Is well that every | safeguard be kept around this branch, a? [ the growth of power? through this m-ian*