Gillett Favors a New
Tax System
Recommends That the Legislature
Investigate Harbor Conditions
FACRAMENTO, Jan. 9. — In his lnau
frurHl nddrp*s Governor GiUett paid
particular attention to the need of har
bor Improvements at San Francisco. He
advocated a revision of the State reve
nue lan-* anil the enactment of a new
law poverninir the insurance compa
nies operating In the State. He said in
part:
Genflemen of th»» Legislature of the
State of California:
I hove t>een much lmpresseft by the
rerrmonfes 3ust closed. Throuph them.
«nd <n a most solemn and impressive
manner, -ft has been announced that I
have been chosen by the people of thl«
prefit State to preside over itf destinies
tr>r four "'•ears." to jruard Its interests, to
cori"Hestimislv arid to the best of my
nhllltv administer upon Its affairs and
to PTPcute its laws.
the erreat honor which the hieh
offle# of Governor brinrs there also
*"m« grave responsibilities, and appre
ciating this I enter upon the dlsrharg*
<">f Tnv fltities \u25a0with a full realization of
the difficulties which will confront me
!n passinjr upon the Important ques
tion* Trhtt* will arise affecting the In
terest* of our people. In meeting them
T trust I shall not falter In my duty.
finfl thftt 1 may have the -wisdom to
decide .them on the side of the right.
lIRTTSIOX OP ItEVENTE LAWS
Tt Is evident that some of th« evils
existing today by reason of our pres
ent revenue laws can best be remedied
by adopting a system already In use
in several cif the States by separating
fltßt* end local taxation. "This means
thflt the J?tat« shall collect Its revenues
from sources other than a direct levy
on reel and personal property — of in
dividuals, leaving to the counties an*
c!tle« the exclusive right to tnx such
property for local purposes. This plan
Trill sire the owners of real estate
nearly $4,000,000 annually paid for
Rtnte taxes, and abolishes nt once the
necessity for between the
counties. The State, under this system
could derive its revenues, in addition
to those collected from present sources,
by levying a tax upon the srross earn
ings of railroads, street railroads, ex
rre«s companies, ear companies, light,
bent and power eomnanies. telegraph
nnd telephone eomrianies. on the shares
of the rr.pitol stork of hanks and upon
corporate franchises. To brir.gr aboijt
this **»pr»ratlon it Is reccssarv that the
ronstitution he amended, and I advise
thrt a resolution nmendlnff It as sup
bested by the commission be passed.
This w!il then r^fcr the vrhole matter
to pconlf for their consideration
fnd the wisdom of the m A nsure can
then be fully discussed by the press.
HARnon IMPROVEMENTS
The rjuestlon of hprbor improvements
lr> th's Strte tortav is one of consider
»»r>le importance, particularly «»s It af
fects San Francisco. Steps should be
token to pi:t the wat*»r front tv* San
T'rxn'-Jsro. and also of. other ports in
in condition to accoTmo
*ate this fr.rt Ir.crensinsr trnn*. There
Is no repson vi-hv improvements Kho'jl<l
not be commenced at nice and pushed
*n ocrrpletion as raps<?lv as possih'e.
These improvements should he subst.rn
tial and permanent, following a care
fully prepared plan, so that when '\u25a0nm-
Tle?e<J we can boast of one of the finest
hcifta In the -world. Of course, to re
lieve present congested conditions sorr"
(•mpflntrv work must be done, and 't
should be nltcnfled to at once, a art
vise that we submit neain to the p#»o
r>f«» tv>» question oi* votinc more money
f*>r this purpose hr Issuing: bonfls so
rured hv the receipts of th» hnrbor. I
pvt\ !»'!•\u25a0•"» thp* the teonjp of this State
ej* ,«-lUing. to vote *>JI the money ne
crssarr to rmprove this groat liarbcr
*n the. Tnanr-er In which it should be
Improve/I, but they have the right to
exne"t thftt tlie money sh^ll be *>ru
«*"ntl% f experfle'l end the best ri+ult«
ohtPi^ied. and further, that the work
shall progress ranldlv. and not draer
a!f>n? from year to year.
T sincerely tru"t that d^rlncr tb« nert
four years the Harbor Commissioners
•wIP fr've to these matters their clos«*=*
Rftention. and this ndmin«s*ration will
expect them to do so. "Within the last
few months the merchants and ship
pers of Ran Francisco have given con
siderable prominence to the conditions
existiner alone: the water front of that
ritv. and have made ma^v snepestinn*
for their betterment. The State will
onot) be caJled upon to expend « larre
sum of money in extending the sea
wall «nd in constructing: **">cks «nd
\u25a0•vharves to nccommodate the rap'dly
I*icreaslnfi: commerce coming to thftt
port. H<»for» this -u'ork commence*,
\u25a0while th»» T^p'^lpture 1s 1n session. I
nm of the opinion that some --*\nd
\u25a0would come from .an Invostieatlon Into
the severnl harbors of the State under
State control, and I would therefore
recommend, that a joint committee of
the Sennte pnd. Assembly he appoirtt.
*»d to ma\<* inquiries into the prevall
'nir conditions at these several har
bors. • - • • - \u25a0
' irsruAxcß' laws
The *>ff«»pt of the r<»cent '•onflarrft
tior 1n San Francisco has had upon In
surance companies, tlie efforts made by
Fome to rvade -the Da>-ment of their
liabilltiesoti technical frrounds, and the
loss, delay • a.r>d lnconvrnle.nce suffered
hv the insured, have demonstrated that
there should be some amendments made
to our Insurance laws. There should
be a standard form of policy, provid
lne ajrainst the loss by fi»-». exnlosinn.
collapse, or earthquake. The contract
of insurance should be mad*' cl^ar and
certain, as to its term*, and this in of
<he most importance. There should also
lie. enacted a deposit law under which
companies of forejpm countries will not
be permitted to do business in this
St*te unless they have on deposit in
this or »ome -other State n minimum
sum. and In addition thereto the full
reserves required, of domestic compa
nies as to all policies Issued upon prop
erty situated in the United States
where a reserve Is . required. All In
sur«nce companies should he required.
to furnish to the insured, upon Cemand..
the necessary blanks to make out his
\u25a0proof of loss. This question is a most
important one. and very Intricate in
Its detPils. But after all it resolves
Itself .into- what-' icdnstltutcs a fair
RKTeement bettrjpen. the Insurer Rnd In
jured, anfl "wrnvt 1s necessary to pro
tect the interests of the contracting
parties.- When this has been solved
your work will have been finished.
O*rrTAl. AM) LAHOn
Our -lji-w*™«hTn:ld "be iust end reason
nble ond- should not ,-h lnne prof crt the
Individual in his property and personal
• rights. -mrf. should I equally • protect all
corporal* "tri crests. The /ri*rht to la
bor, t©' ftccumtnate property ahd con
duct a business' are most 'sarrefl rights,
vouchsafed to all by our constitution,
nnd no man or -corroration 1n the en
loyment of nny of these rights should
be unlawfully or wrongfully interfered
with by ettTier orR-anlzed capital or or
iranized Ixbor. These rlßhts of the cltl
ssen should at nil times be Jealously
guarded by our laws and those Invading
them punished, and no law should be
r-nacted tchlch would pive to organised
<-a,pital or orsaniz^d labor any rights
superior to or infring;lner upon the
ritrhts enjoyed by all the people in
common. -
The pure fond bill enacted by the last
session of Onj^ress has made It necos
jtarv that tner* should be so»ne changes
lrvour laws. This bill applies to inter
state commerce only, and does no* af
fect articles of food prenEr^d nnd drug*
snd medicines compounded ir..the States
«nd interded to be sold and. used
therein. . California, because of its fruit
inter'wts Rr»d w-ine industries, (should be
the first to stafid for a stronsr pure food
Jaw. The bj-andlnp of cottonseed • oil
e.% pure California olive oil injures our
olive industry; the misbranding of our
wines affects our wine producers and
the placing of labels upon inferior
Eastern fruit and representing it to
be California fruit Is a gross injustice
to those ensrafred in carmine and pre
serving California fruits. Such prac
tice is a fraud upon the community
l «nd should be stopped. *nd every ef
, fort should be put forth to etop it
The jrcnerel Government will take ac
tive Bteps to do «o. and It \m our duty
to assist when and wherever w« can.
In conclusion th« Governor called at
tention to the fact that th« expense*
of tfce State srovcrnxent were increa»-
Ing out of proportion to the Increase
in population and wealth and urged
economy upon the Legislature and that
it ask of every -measure that was to
be presented the juestlon: ir It ne
cessary?
The Governor's utterances on tM di
rect primary question are contained In
another column.
Growth in* Sales is the JSvldeEc©
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|ii -I I J I 1905 \u25a0 .\u25a0. . . 1,403,788 Barreb
k C ffis y^gt\ This Exceeds that of All Other BOTTLED BEERS.
\ vQU£u£ffld£%/^^^ w e :ti&*^standard of quality, fine flavor and exquisite
%(# (V) taste have won for Budweiser its great popularity.
'( \^(^^^^^/ &i& i< jff/r' nji co«rt. the s^ Anheuser-Busch Brewing Ass's
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THE SAN FRANCISCO CALXV THURSDAY, JANUARY 10, 1907..
SHERIFF WARS ON
HOBO CLANS
M-*-l INEZ. Jan. 9.— An edict has
gone forth from the offlc© of Sheriff
Veale that the hobo fraternity .which
has Trade Martinez a rendezvous during
their transcoanty travels for several
years will no longer. «be allowed to
tarry within the. limits of the town,
and the deputy sheriffs of this city
have be«n Instructed to wage war on
them. The County Jail has. been ac
cordingl',' , taxed to its'' capacity In
ca. ir; " for the * wanderers and the
doughty Sheriff Is. contemplating a
rock, pile 6lmilar to the one of 1899
and 1900. Several petty crimes have
been committed in this city during the
p- few weeks and it 'is to put an end
THIS CITY IS HEAVY
BUYER OF STEEL
CLEVELAND;^, Ohio, * Jan. 9.— The
Iron Trade Review; tomorrow will-say:
San Francisco, ls at^ last appearing as
an Important ! buyer. " Orders" aggregat
ing about 7000 r tonsi for new buildings
have been < placed : since * January 1 and
contracts, for; several other structures
in that city are pending. . , .
The December sales of , the Ameri
can Bridge.. Company iwere ;the-heav
iest of -the past; year,' with the
tion of October, and the'sales forrthe
year aggregated 660.000 ' tons. :? Orders
for steel for a number of . skyscrapers
In New, York have been >placed.« • '?
to these depredations. that Sheriff -Veale
determined upon" the* present course. ;
REFINING CONCERN
GAINING WEALTH
SPECIAL DISPATCH TO THE CALL.
T BOSTON, Jan. 9. — The American
Smelting and Refining Company, for
the fiscal year 'ending. April 30 next,
will, show earnings far in excess of
the preceding year, owing X.o \u25a0 the
greatly, increased .output at' higher
prices.,* The company refined over
$50,000,000 worth of gold' last , year,
and', will handle considerably, more this
year. Profits also will be shown from
the sale^of United Lead : stock,- which
did not appear last year; >\u25a0" also" from
the United States Zinc Company and
the use of the Huntlngton and Haber
lein patents. The showing on the own
ership of 50- per cent of the American
VICEROY STRIKES
AT BOYCOTT
HONGKONG, Jan. B.— The second
and subsequent meetings of anti-
American , boycqtters . were broken up
by the action of the Viceroy of Can
ton; who ordered the arrest of the
leaders.
The police have' been instructed to
destroy all placards bearing on the
proposed boycott and\ the local news
papers have been -prohibited from al
luding to the subject.
Smelters securities stock will be bet
ter than 2% per c6nt on the Ameri
can Securities common. Last year's
surplus of $10,482,000 will be greatly
increased this year.
RECOVER BODY OF
HICKS' COMRADE
SPECIAL DISPATCH TO THE CALL.
BAKERSFIELD.Jan. 9. — The recov
ery of the first of the bodies .of tha
miners buried in the cave-In of ths
Edison Electric Company shaft on De
cember 1. when Lindsay B. Hicks was
entombed for almost sixteen days, -was
made last night after laboring day and
night for more than two weeks. It
has been identified as the remains oS
H. Parrlsh and was brought to the lo
cal undertaking establishment this af
ternoon. The inquest is not to be held
until the remaining four bodies shall
have been recovered. Due to the pre
caution with which progress must ba
made this may not be for weeks. •\u25a0 :V
3