The public papers and addresses of Franklin D. Roosevelt. Volume one, The genesis of the New Deal, 1928-1932: with a special introduction and explanatory notes by President Roosevelt. [Book 1]
Roosevelt, Franklin D. (Franklin Delano), 1882-1945., Rosenman, Samuel Irving, 1896-1973., New York (State). Governor (1929-1932 : Roosevelt), United States. President (1933-1945 : Roosevelt)

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Page  [unnumbered] THE PUBLIC PAPERS AND ADDRESSES OF FRANKLIN D. ROOSEVELT

Page  [unnumbered] Volume One THE GENESIS OF THE NEW DEAL 192 8-1932 Volume Two THE YEAR OF CRISIS 1933 Volume Three THE -ADVANCE OF RECOVERY AND REFORM 1934 Volume Four THE COURT DISAPPROVES 1935 Volume Five THE PEOPLE APPROVE 1936

Page  I Fr I I II II I II r: I b*~e3llr_rrrL*lrrrrCibl~llr THE PUBLIC PAPERS AND ADDRESSES OF FRANKLIN D. ROOSEVELT WITH A SPECIAL INTRODUCTION AND EXPLANATORY N-OTES BY PRESIDENT. ROOSEVELT Volume One THE GENESIS OFTHE NEW DEAL 192 8-193 2 RANDOM HOUSE NEW YORK i -g8

Page  II COPY R IGHT., 1938, BY FRANKLIN DELANO ROOSEVELT A/ Copyright under International Copyright Union All Rights Reserved under Pan-American Copyright Conventions B Y FRANKLIN DELANO ROOSEVELT NOTE: All rights reserved. For permission to reproduce any introduction, note or title in this book, application must be made in writing to Random House, Inc., 20 East 57th Street, New York City, N. Y. MANUFACTURED IN THE UNITED STATES OF AMERICA HADDON CRAFTSMEN, INC.Cs>. CAMDEN, NEW JERSEY

Page  III The material in these volumes has been compiled and collated by SAMUEL I. ROSENMAN Counsel to the Governor during the administration of Franklin D. Roosevelt as Governor of the State of New York 1929-1932

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Page  V ~PA CH B RO0S.

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Page  VII THESE VOLUMES ARE DEDICATED TO THE PEOPLE OF THE UNITED STATES WITH WHOM I SHARE BELIEF IN THE PRINCIPLES AND PROCESSES OF DEMOCRACY

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Page  IX General Introduction IN THIS generation the people of the United States have been facing two major problems, the solution of which seems more and more vital to the continued functioning of what we call the requirements of modern civilization. The first of these, the maintenance of that ideal of government known as the democratic process, is not new, for it goes back in our own history for nearly two centuries. During our existence as a Nation, the United States has found it necessary from time to time to carry on extended political movements for the retention of democratic processes. We must not assume that our democracy in 1789 corresponded to 'the interpretation of the term in 1933. At the time of the first inauguration. of George Washington, voting was, in general, restricted to the owners of a substantial amount of property. The natural result was that those chosen to fill executive and legislative positions came, virtually by common consent,, from the besteducated classes. We must remember that much the greater part of the whole population of the original States was made up of men w~ho had received either no education at all or only what we today would term a smattering of the rudiments of education. Therefore, in the early days the control of government rested in the hands of a definite minority of the male population. As time went on, the proportion of voters to the whole population increased gradually. In our own generation universal suffrage is in effect except in a very few parts of the United States. During this gradual extension of the franchise, the actual control of government, nevertheless, passed from time to time from the hands of the voters themselves to various groups of citizens - groups which were not classes, as classes are known in Europe, but rather aggregations of power concentrated in a very small percentage of the population. In the earliest days such concentration of authority was actively sponsored by men in public life, many of whom had even, been ardent supporters of the American Revolution. In later days important financial and ix

Page  X General Introduction banking interests became so powerful, not only in the economic, but also the political system, that the Jacksonian period came as a logical protest. Still later, the clash of the plantation system, the immigration to the Middle West and the development of early industries resulted in a new emphasis on special managerial interests, using slavery and States' rights as a cloak, to halt the march of democracy and make a civil war inevitable. This was followed by another era of unrestrained expansion, wild-cat speculation, and dishonest government, which in spite of the struggle to end the spoils system, to curb the railroads, and to maintain sound currency, lasted nevertheless into the early years of the present century. That there has been a vast improvement in the processes of government in our own lifetime can be readily proved. History, I think, will give great credit to Theodore Roosevelt and to Woodrow Wilson for the part they played in arousing public opinion to the necessity not only of conducting honest government but, at the same time, transferring its policies and objectives from the control of minority groups often selfish, to the great mass of the citizens themselves in accordance with our more modern concept of the democratic process. In spite of the apparently soulless decade which followed the World War, I have always felt that the surge of the previous twenty years caused by these two great personalities was by no means dead. The idealism of a score of years could not so readily be snuffed out. It is true that during the twenties of this century, control of government was allowed to slip back, in large degree, to the hands of small groups representing big finance and large industry; that most of our citizens were so busy with their occupations and with speculation, that problems of national economics and social betterment were neglected by all but a few; and that politically there was no substantial leadership to counteract a growing popular trend toward thinking in terms of the Mississippi Bubble rather than in terms of permanent security. That decade, therefore, can be said to represent a dormant x

Page  XI General Introduction period for democratic processes - a period, nevertheless, which was probably necessary for the revitalizing of any great movement to restore and maintain democracy. The fulfillment of the idea of the very word "democracy" presupposes a national interest on the part of a large percentage of citizens. But, unfortunately, a catastrophe seems to have been necessary to focus public attention once more on ideals in government and on its proper relationship to citizens. The year 1929 was an ideal time for the beginning of another national movement for the restoration of democratic controla movement old in our American history so far as its objectives are concerned, but new in its application to the greatly changed circumstances and tempo of modern life. The second great problem which faced this generation did not have its roots so deeply embedded in our past as the case of democracy in government. Social justice is essentially a conception of this century. It was not visualized by the men who founded the Nation, and it entered little into the daily life or thought of those who expanded the original thirteen - States to the empire stretching all the way to the Pacific. It is true that prior to 1900o there were sporadic demands here and there to improve by State or local machinery the lot of factory workers and miners, the care of public health and the conditions of prisons. It is true that efforts to organize small groups of workers appeared here and there during the latter part of that period. And it is true that increasing study was being given to social and economic national problems in certain select circles. The new surge of public conscience toward social justice appeared earlier, and progressed more rapidly in Europe than here. Several Nations had actually adopted old-age pensions and other security methods before the World War commenced. That war, by its overthrow of many monarchical Governments, stimulated the demand for further reforms - a demand which made itself felt sometimes by violence, sometimes by the setting up of wholly new and strange methods of government, and sometimes by misapplication of democratic forms to people not ready for them. XT

Page  XII General Introduction We in the United States had been ready before the World War to press for many social reforms. The War interrupted that march of progress as soon as the advance was begun. When peace came, enthusiasm for any basic social betterment was swallowed up in the very understandable demand for "a return to normalcy"' the normalcy of 1910. Let me say with -complete frankness that during the twenties, I in common with most liberals did not at the start visualize the effects of the period, or the drastic changes which were even then necessary for a lasting economy. We knew that many changes in monopolistic practices and in the concentration of the control of wealth in the hands of a few - changes fought for by Theodore Roosevelt and Woodrow Wilson - were long overdue. But we did not understand the real depths of the problem. Almost all economists were then preaching the theory that the greater the production of goods, the greater the wealth and wellbeing of the Nation. That delightfully simple theory of 1928 ignored the fact that in 1928 when production was increasing unemployment was also increasing. It required the depression itself and my experience as Governor during that period to bring home to me the more fundamental, underlying troubles which were facing all civilization. It is true that in the campaign of 1928 I had grasped the fact that the progressive decline in agriculture was a thing of danger; and that, in advocating the election of Alfred E. Smith, I had pointed to his public record on behalf of the groups who received for their labor only an inadequate and unjust share of the national income. The 1 929-1933 period was well fitted to serve as an education in social and economic needs for those who were willing to search out all the underlying causes and not merely symptoms on the surface. During that period there were two clearly defined and opposing classes of thought. Those in charge of the national Government believed that individual and collective private action could restore the prosperity of 1928 and that the restoration of such X11

Page  XIII General Introduction prosperity was the sole objective. This group wholly ignored both problems of modern civilization of which I have spokenthe ideal of the democratic processes and the necessity for social justice. The other group, to which I very definitely belonged, believed that a material recovery could not be established by the same forces which had created the depression and, furthermore, that if those forces were entrusted with the task of recovery, they would wholly ignore the needs of reform. To. us, strong vital government action was therefore a prerequisite in, any program for material recovery. During my four years in Albany this prerequisite became,more and more apparent because of the complete failure of the private groups actually in control of the Federal Government either to solve the economic situation or to care for the growing number of human beings who were definitely in need of assistance. The remedies proposed by these private groups were inadequate. They sought to do a patchwork job on unsound foundations. Most important of all, they clung obstinately to. their opposition to all social reform. In these volumes those who seek inconsistencies will find them. There were inconsistencies of methods, inconsistencies caused by ceaseless efforts to find ways to solve problems for the future as well as for the present. There were inconsistencies born of insufficient knowledge. There were inconsistencies springing from the need of experimentation. But through them all, I trust that there also will be found a consistency and continuity of broad purpose. Consistently I have sought to maintain a comprehensive and efficient functioning of the representative form of democratic government in its modern sense. Consistently I have sought through that form of government to help our people to gain a larger social justice. Washington, D. C. -d/ January 24, 1938 '%r ITI

Page  XIV General Introduction T he work of compilation and arrangement of the material for these volumes has involved not merely many hours of work but also a complete and clear understanding both of national problems and of details of government. I know of no one better equipped for this task by training and experience than my old friend, Samuel I". Rosenman, who served as counsel to the Governor during my term as Governor of the State Of New York. it is for that reason that I asked him to undertake this task., and I am grateful for all that he has done. At the same time I extend his thanks and mine to the members of the Cabinet and heads of other agencies and others who have assisted in the gathering of this material in the various departments of the Government and in the Executive Of/ices in the White House. As these volumes will be principally useful in the future to Government officials and students of history, the contribution of those who have assisted is of great value to permanent accuracy in assaying the period in which we live. F. D. R. XIv

Page  XV Foreword OLUME ONE of this series is a compilation of selected public papers and addresses of Franklin D. Roosevelt as a candidate for the office of Governor of the State of New York, as Governor of the State, as candidate for the Presidency of the United States, and as President-elect. They cover the period from October 8, 1928, to March 3, 1933. The papers selected for the period of the Governorship have been arranged by general subject matter, except the inaugural addresses, the annual messages to the Legislature, and the campaign speeches, each of which refers to several subjects. Obviously only a limited selection of the Governor's public papers for the four years of his Administration in New York and of his speeches during the three political campaigns of 1928, 1930 and 1932 could be crowded into the limits of one volume. Those were chosen which most clearly show his general policies and objectives in so far as they forecast what was to come later in the Presidency. Even these had to be limited by considerations of space. Many omitted papers have been referred to, however, and can be found in full in the appropriate annual volumes of The Public Papers of Governor Franklin D. Roosevelt. Documents of purely local or State interest, dealing with matters unrelated to his later programs as President, have not been included. Volumes Two, Three, Four and Five of this series consist of the public papers and addresses of Franklin D. Roosevelt as President. Each volume covers one of the four calendar years of the first Administration from March 4, 1933, to January 19, 1937 -However, Volume Two covers the year 1933, from Inauguration Day only; and Volume Five, in addition to the year 1936, covers part of January, 1937, i.e., to the date of the second Inauguration. It is expected that a volume similar in content and format to these four volumes will be issued after each year of his second Administration. xv

Page  XVI Forewvord The papers included in Volumes Two, Three, Four and Five consist of messages to the Congress, public addresses of the President, some of the press conferences, a number of the Executive Orders and Proclamations, a selection of the published letters of the President and the more important White House statements. Practically all of the Presidential messages to the Congress have been included; the only exceptions are the formal messages merely transmitting to the Congress reports submitted to the President from time to time by various agencies of the Government. There have been excluded the numerous veto messages on private and local bills of the Congress which do not have national importance or significance. With respect to public addresses, it has been necessary to curtail the number to be printed, in order to meet requirements of space. Practically all of the formal, prepared addresses have been included. Numerous extemporaneous and informal speeches, which have little national importance or which express the same general thoughts as other speeches, have been omitted. This is particularly true of extemporaneous speeches delivered from the rear platform of the President's train during campaigns or during the trips made by him to different parts of the United States. Only a part of the total number of these extemporaneous speeches has been printed, although reference has been made by place and date to most of those which have been omitted. A novel feature in compilations of Presid~en tial public papers is the inclusion in these volumes of several of the press conferences of the President and excerpts from others. Since his inauguration, press conferences have been conducted by President Roosevelt very informally, with unlimited freedom on the p.art of reporters to ask questions. These conferences have all been taken down verbatim by a stenographer. A few of the more important of them have been selected for this publication, not only to show the type of relationship maintained between the President and the press, but also to indicate trends of Administration policy in connection with certain public affairs. Although there were 337 press conferences during the first four years of xCVT

Page  XVII Foreword President Roosevelt's term of office, only 48 have been included in whole or in part in these volumes. They would themselves occupy several additional volumes if all were printed in full. The conferences, so far as they have been included, are accurate stenographic records of what transpired, with minor editing. Only a few of the Executive Orders issued by the President during these four years have been printed. A complete list, however, of all of the Executive Orders is printed at the end of Volume Four. The vast majority of them relate to purely routine administrative matters, such as approval of codes submitted under the National Industrial Recovery Act, exemptions of various individuals from retirement age provisions, etc. Full text of Executive Orders may be obtained by application to the Division of Federal Register, National Archives, Washington, D. C. The Executive Orders have been printed without the formal beginnings and conclusions. Similarly, only important Presidential Proclamations have been included. A complete list of these during the first four years is also printed at the end of Volume Four. The routine Proclamations have been omitted. The complete form of a Proclamation is printed on page 17 of Volume Two. Full texts of all Proclamations for the President's first term are printed in Part II of Volumes 48 and 49 of the United States Statutes at Large. No private letters of the President have been included. On the whole, only published letters which have some national significance have been printed. During the course of each year, the President is requested to, and does, send many letters of greeting to various national organizations and associations assembled throughout the United States, either at a convention or in some public gathering. A limited number of specimen letters of this kind have been included in these volumes. Important White House statements and an occasional Treasury or State Department release have been printed, although technically they are not utterances of the President himself. They do serve, however, to explain Administration policy toward items of legislation and other public affairs. In general, only the xviT

Page  XVIII Foreword speeches and acts of the President himself have been included, except in cases of joint statements by the President and somerepresentative of a foreign Nation, or in a few exchanges of letters in which the entire correspondence has been printed. The appointments by the President to various public offices have not been included; nor have his memoranda accompanying acts of Executive clemency. The various documents included in these volumes have been selected with the object of presenting the more significant written and oral utterances of the Chief Executive during this period -one of the most important in American history. The papers and addresses during the Presidency have been printed in chronological order, rather than by topical arrangement. The separate subjects discussed may be found by reference to the index for each volume. For continuous reading on any one important subject - such as agriculture, monetary system, National Recovery Administration, foreign affairs, or others - reference should be made to the table of subjects, appearing on page xxi of this volume, which covers the documents in all five volumes. The important papers in these volumes are covered by comments and notes written by President Roosevelt. This feature is unique in editions of Presidential papers. The object of the President in preparing and publishing these notes is to present the facts and circumstances surrounding the issuance of the various documents, the reasons and the policy underlying them, the legislative and administrative action taken pursuant to them, or the results accomplished by them. The notes were prepared chiefly during the summer and fall of 1937, and the accomplishments are in most instances detailed down to that period only. It is expected that as the succeeding volumes appear, the results accomplished will also be carried forward chronologically. It has been the desire to present within the limits of these volumes a chronological story, by Presidential utterances and by Presidential notes, of the more important events during these XVIII

Page  XIX Foreword critical four years - years which will have as great effect upon the future history of America as any similar period of time. It is hoped that these books in the years to come will be a source of historical data about this significant period in history. If some of the notes seem to deal with subjects well known to readers of today, it should be remembered that they are written not only for the present, but for those who in the future may seek to interpret the policies of President Roosevelt from his public utterances and acts, and from his comments with respect to them. SAMUEL I. ROSENMAN XIX

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Page  XXI Topical Table NO TE: The documents in. these volumes, except in Volume I, are arranged chronologically. In order to enable the reader to follow any particular subject through this extensive material, the following Topical Table has been prepared, showing the various Item numbers dealing with the respective subject. Where a note is, appended to an Item number, the note is included in the reference to the Item and should be read with the Item. Some subjects fall within more than one of the general classifications enumerated below. For example, the subjects of proper use of land and of resettlement belong to the general topic of Agriculture and also to the topic of National Planning. They have accordingly been listed in both classifications. This practice has also been followed in other instances where documents might be placed in more than one category. By using this table a general view may be had of the treatment during these years of any of the topics listed. The table also shows the continuity along many lines between the documents of the Governorship and the documents of the Presidency. For more detailed itemization of any particular subjects, the reader is referred to, the index at the end of each volume. AGRICULTURE (Including A.A.A., Cotton Crop Adjustment, Crop Adjustment, Crop Insurance, Crop Production Loans, Crop Surpluses, Ever-Normal Granary, Farm Credit Administration, Farm Mortgages, Farm Tenancy, Federal Surplus Relief Corp., Land Use, Resettlement, Seed Loans, Soil Conservation, Subsistence Homesteads, Sugar, Wild Life) VOLUME I Items VOLUME II Items VOLUME III Items VOLUME IV Items VOLUME V Items 1., 3, 13, 14 (page 8 1), 15 (page 9,2), 17 (page 105), Chapter 111, 131 (page 655), 135, 140, 145, 146 (page 829)., 148 (page 853). 18, 20, 22, 22A, 23., 29., 54,9 73., 83., 84, 92, 100, io6, 125., 130., 140., 151, 177., 179 6., 21., 27., 29, 62, 64, 76., 8o., i 16, 124, 124A 18., 33., 50., 51,9 59, 84, 113., 120,9 135, 151., 152, 177., 181, 182, 183 4, 6, 11, 19, 25, 28., 3:2, 39, 56., 131,9 133j, 141, 151., 155,9 156, 158, 182,:218 (See also Drought, Flood and Other Natural Disasters; National Planning) xxi

Page  XXII Topical Table BANKS AND BANKING (Including Aid to Banks by R.F.C., Deposit Liquidation Board, Export-Import Bank) VOLUME I Items 15 (page 87), 18 (page 113), Chapter XXI. VOLUME1II Items 8, 9, 1o, 11, 13, 15, 16, 121, 139, 149, 195 VOLUME III Items 18, 44, 170 BUDGET AND TAXATION (Including Executive Budget, Tax Evasion) VOLUMEI Chapter XIII, Item 144 VOLUME III Items 3, 43, 83 VOLUME IV Items 3, 83, 99, 102, 137 VOLUMEV Items 2, 29, 114, 144, 155, 191, 236 (See also Economies in Government) BUSINESS (Including Business Cooperatives, Collusive Bidding, Credit Facilities, Monopolies, Prices) VOLUME I Item 142 VOLUME II Items 59, 78, 79, 81, 93, 98, 105, 147, 151, 166, 194 VOLUME III Items 19, 18, 37, 39, 44, 50, 93, 119, 163 (page 415) VOLUME IV Items 13, 14, 30, 52, 53, 70, 8o, 121 VOLUME V Items 73, 76, 167, 176, 183, 190, 195, 217, 219 (See also Hours and Wages, Labor and Labor Relations, National Recovery Administration) CIVILIAN CONSERVATION CORPS VOLUME II Items 18, 21, 27, 31, 90, 113 VOLUME III Item i65 VOLUME V Items 45, 50, 95 CONSUMERS VOLUME III Item iI VOLUME IV Item 98 VOLUME V Item 201 COURTS AND CONSTITUTION (Including Administration of Justice) XXII

Page  XXIII Topical Table VOLUME I Items 1, 11, 13, 14 (page 85), 15 (page 88), 18 (page 121), Chapter VIII VOLUME IV Introduction, Items 64, 65, 69, 91 VOLUME V Items 4, 59, 235 (page 639) CRIME AND PRISONS (Including Prison Labor, Probation, Parole) VOLUMEI Items 11, 17 (page ioi), 18 (page 120), Chapter XV, 89 (page 412), 113 (page 550) VOLUME III Items 74, 85, 193, 194 VOLUME IV Item 74 VOLUME V Item 242 DROUGHT, FLOOD AND OTHER NATURAL DISASTERS (Including Earthquakes, Hurricanes) VOLUME II Item 14 VOLUME III Items 8o, 8i, o103, 147 VOLUME IV Items ioo, 118 VOLUME V Items 37, 38, 41, 42, 47, 54, 83, 90, 92, 95, 99, 101O, 103, 104, 105, io6, 107, 110, 111, 112, 113, 116, 117, 118, 120 ECONOMIES IN GOVERNMENT (Including Consolidations of Agencies, Pay of Federal Employees, Soldiers' Bonus, Veterans' Regulations) VOLUME II Items 3, 12, 27, 28, 51, 63, 69, 71, 71A, 131 VOLUME III Items 5, 43, 55, i68, 199, 199A VOLUME IV Items 62, o102 VOLUME V Items 6, 12, 14, 15 (See also Budget and Taxation) ELECTRICITY AND REGULATION OF PUBLIC UTILITIES (Including Electric Home and Farm Authority, Federal Power Commission, Great Dams, Hydro-Electric Power, Rural Electrification, St. Lawrence River Development, T.V.A., Utility Holding Companies) VOLUME I Items 1, 6, 13, 14 (page 82), 15 (page 91), 17 (page o106), 18 (page 122), Chapter IV, Chapter VII, 90, 91, 138, 146 (page 827), 154 VOLUMEII Items 36, io6, ii6, 184 XXIII

Page  XXIV Topical Table VOLUMEIII Items 7, 43, 126, 137, 138, 144, 175, 184, 186 VOLUME IV Items 27, 48 (page 138), 58, 82, 88, 1o6, 11o, 139 VOLUME V Items 34, 123, 132, 245 FOREIGN AFFAIRS (Including Arms and Munitions, Buenos Aires Conference, Foreign Trade, Good-Neighbor Policy, Inter-American Affairs, Inter-American Highway, Montevideo Conference, Neutrality, Peace, Reciprocal Tariffs, Russia, War Debts, World Economic Conference at London) VOLUME I Items VOLUME II Items VOLUME III Items 27, 133 (page 672), 137, 140, 142 (page 785), Chapter XXV Note, 151, 152 37, 43, 43A, 43B, 43C, 43D, 45, 45A, 46, 46A, 49, 52, 53, 56, 57, 58, 6o, 61, 64, 65, 68, 70, 76, 77, 86, 87, 88,, 103, 11, 114, 137, 141, 143, 144, 153, 156, 158, 16o, 162, 168, 169, 172, 18o, 192 1 (page 11), 4, 13, 18, 20, 33, 38, 38A, 48, 59, 84, 88, 95, 96, 98, 1oo, 111, 115, 127, 128, 132, 133, 134, 195 VOLUME IV Items 1 (page 24), 4, 36, 40, 40A, 49, 95, 101, 105, 117, 119, 130, 136, 141, 143, 144, 145, 156, 157, 158, 161, 162, 163, 165, 168, 170, 176 VOLUME V Items 1, 17, 26, 30, 33, 33, A, 35, 75, 86, 93, 97, 135, 140, 151 (page 421), 157, 211, 222, 223, 224, 225, 226, 227, 231, 235, 243 GENERAL OBJECTIVES AND ACCOMPLISHMENTS OF THE NEW DEAL VOLUME I General Introduction, Introduction to Vol. I, Items 1, 12, 13, 87, 128, 129, 130, 131, 133 (page 68o), 139, 141, 147, 150 VOLUMEII Introduction, Items 1, 50, 101, 119, 131, 146, 164, 178, 192 VOLUME III Introduction, Items 1, 97, lo2, 114, 163, 181 VOLUME IV Introduction, Items 1, 48, 70, 115, 140, 141, 173 VOLUME V Introduction, Items 1, 3, 44, 48, 53, 64, 65, 66, 68, 71, 79, 97, 122, 130, 137, 141, 144, 147, 152, 153, 156, 159, 165, 166, 170, 172, 173, 176, 177, 178, 179, 180, 181, 183, 186, 189, 190, 191, 195, 196, 198, 201, 202, 204, 2o6, 207, 2o8, 235 (See also specific subjects for specific accomplishments and objectives in those fields) XXIV

Page  XXV Topical Table HOURS AND WAGES VOLUME I Items 4, 14 (page 83), 15 (page 90), 17 (page 105), 18 (page 123), Chapter VI, 148 (page 852) VOLUME II Item 38 VOLUMEIII Items 91, 164 VOLUME IV Items 19, 80 VOLUME V Items 180, 183, 231 (See also Business, Labor and Labor Relations, National Recovery Administration) HOUSING AND HOME OWNERS (Including Federal Housing Administration, Home Home Owners Loan Corporation) Mortgage Foreclosures, VOLUME I VOLUME II VOLUME III VOLUME IV VOLUME V Chapter X Items 39, 74, 117 (page 332), 171 Items 32, 50, 82, 188, 196, 196A Item 24 Items 56, 177, 199, 244 INSULAR POSSESSIONS (Including Philippine Islands, Puerto Rico, Virgin Islands) VOLUME I VOLUME III VOLUME IV VOLUME V Item 125 Items 28, 34, 94, 129, 130, 131, 135 Items 34, 34A, 39, 63, 126, 164 Item 87 LABOR AND LABOR RELATIONS (Including Collective Bargaining, General Labor Legislation, Labor Disputes, Strikes) VOLUME I Items 4, lo, 14 (page 83), 15 (page 90), 17 (page 104), 18 (page 123), Chapter VI, 88 (page 410) VOLUME II Items 72, 72A, io8, 109, 133, 150, 154, 182 VOLUMEIII Items 26, 45, 46, 51, 61, 66, 92, io6, 109, 113, 118, x18A, 120, 155, 157, 157A, 163 (page 418) VOLUME IV Items 7, 13, 14, 68 (page 231), 69, 77, 9 9, 6 VOLUME V Items 31, 40, 74, 94, 119, 200, 232 (See also Business, Hours and Wages, National Recovery Administration, Transportation) XXV

Page  XXVI Topical Table MONETARY SYSTEM (Including Currency, Devaluation, Foreign Exchange, Gold, Silver, Stabilization) VOLUME II Items 8, 9, 11, 13, 32, 33, 35, 41, 42, 77, 87, 88, 12o, 146 (page 425), 187, 187A VOLUMEIII Items 8, 9, 15, 16, 73, 89, 145, 146 VOLUME IV Item 87 VOLUME V Items 135, 159, 228 NATIONAL PLANNING (Including Grazing Land, Great Plains, Land Use, National and State Parks, National Resources Board, Natural Resources, Population Distribution, Reforestation, Regional Planning, Resettlement, State Planning, Subsistence Homesteads, T.V.A.) VOLUME I Items VOLUME II Items VOLUME III Items VOLUME IV Items VOLUME V Items 3 (page 28), 9, 18 (pages 116, 119), 21, 22, Chapters XVIII, XIX, XX, 135 (page 699) 36, ioo, io6 64, 99, 112, 124, 124A, 139, 141, 184, 186, 187 2, 8, lo, 30, 50, 51, 60, 73, 84, 120, 124, 139, 169 11, 16, 56, 81, 83, 84, 90, 104, 120, 131, i31A, 159 NATIONAL RECOVERY ADMINISTRATION (Including N.I.R.A.) VOLUME II Items 59, 78, 79, 8o, 81, 84, 93, 97, 98, 105, 112, 118, 147, 148, 166, 177, i86, 194 VOLUMEIII Items 11, 37, 39, 42, 93, 104, 156, 159, 163 VOLUME IV Items 13, 14, 17, 35, 48 (page 138), 52, 64, 65, 66, 67, 68, 70, 72, 78, 78A, 78B, 114, 138, 184 VOLUME V Item 46A (See also Business, Hours and Wages, Labor Relations) OIL AND COAL VOLUME II Items 30, 62, 95, 95A VOLUMEIII Item 90 VOLUME IV Items 21, 68, 91, 96, 103 RELIEF (Including C.W.A., Federal Emergency Relief Administration, Federal Surplus XXVI

Page  XXVII Topical Table Relief Corp., National Youth Administration, P.W.A., Public Works Program, Unemployment Relief, Work Relief, W.P.A.) VOLUME I Items VOLUME II Items VOLUME III Items VOLUME IV Items VOLUME V Items 17 (page 103), 18 (page 115), 88, Chapter XVII, 131 (page 653), 143, 148 21, 41, 55, 59, 75, 80, 89, io6, 116, 117, 123, 125, 126, 130, 151, 155, 155A, 161 31, 141 1 (page 21), 31, 37, 45, 48 (page 135), 51, 54, 72, 79, 85, 86, 86A, 89, 92, o00, o9, i116, 150 36, 78, 83, 88, 136, 146, 155, 178, 179, 184, 185, 219, 240 (See also Drought, Flood and Other Natural Disasters) REORGANIZATION OF EXECUTIVE BRANCH OF GOVERNMENT VOLUME V Items 43, 43A, 241, 241A (See also Economies in Government) SECURITIES AND EXCHANGES VOLUME i Items 131 (page 653), 133 (page 682) VOLUME II Items 25, 26, 27, 66 VOLUME III Items 22, 52 SOCIAL SECURITY (Including Child Welfare, Crippled Children, Dependent Children's Aid, Maternal and Child Health, Old-Age Security, Public Health Grants, Unemployment Insurance) VOLUME I Items 5, 14 (page 84), 17 (page 102), 18 (page 121), Chap VOLUME III VOLUME IV VOLUME V Items Items Items ters V, XII, XIV, 89 (page 416), 95, 96, 99, 113 (page 552), 143 (page 791) 49, 117, 179 6, 6A, 6B, 48 (page 134), 107 138, 191, 195, 2oo TRANSPORTATION (Including Aviation, Merchant Marine, Motor Carriers, Railroads, Railroad Retirement Acts, Railway Labor Disputes) VOLUME I Items 18 (page 114), 136, 146 (page 828) VOLUME II Items 72, 72A VOLUME III Items 17, 26, 43, 45, 58, 61, 66, 120o, 122 XXVII

Page  XXVIII Topical Table VOLUME IV Items 12, 22,9 69., 71., 104 VOLUME V Items 31, 40, 232 (For the reader's guidance in using the foregoing Topical Table, the subjects listed below are to be found in the topics which are set down opposite each subject.) A.A.A. Accomplishments Administration of justice Anti-Trust Laws Arms and Munitions Aviation Buenos Aires Conference Child Welfare, Health Coal Commodity Credit Corp. Conservation Cotton Crop Adjustment Crippled Children Crop Adjustment Crop Insurance Crop Surpluses Currency Devaluation of the Dollar Earthquake Electric Home and Farm Authority Farm Credit Administration Farm Mortgages Farm Tenancy Federal Housing Administration Federal Surplus Relief Corp. F.E.R.A. Flood Foreign Exchange Forestation See Agriculture itGeneral Objectives and Accomplishments of the New Deal 49Courts and Constitution 46Business; Consumers; National Recovery Administration isForeign Affairs itTransportation isForeign Affairs itSocial Security 499Oil and Coal isAgriculture itNational Planning stAgriculture isSocial Security isAgriculture 6 9Agriculture isAgriculture stMonetary System itMonetary System itDrought., Flood and Other Natural Disasters isElectricity and Regulation of Public Utilities isAgriculture isAgriculture isAgriculture 496Housing and Home Owners itAgriculture; Relief ccRelief ccDrought, Flood and Other Natural Disasters IfMonetary System asNational Planning xxviII

Page  XXIX Topical Table Gold Good-Neighbor Policy Grazing Great Plains Home Mortgages Home Owners Loan Corp. Hurricanes Inter-American Affairs Inter-American Highway Land Use London Economic Conference Maternal Aid Merchant Marine Minimum Wage Monopolies Motor Carriers National Parks National Resources Board National Resources Committee National Youth Administration Natural Resources Neutrality Old-Age Pensions Pan-American Affairs Parks Parole Petroleum Philippine Islands Power Prices Prisons Probation Public Health Grants Public Works Administration Puerto Rico Pure Foods and Drugs Railroads Reciprocal Tariffs Regional Planning Resettlement See 6, Monetary System Foreign Affairs National Planning National Planning Housing and Home Owners Housing and Home Owners Drought, Flood and Other Natural Disasters Foreign Affairs Foreign Affairs Agriculture; National Planning Foreign Affairs " Social Security " Transportation " Hours and Wages " Business " Transportation " National Planning " National Planning " National Planning " Relief cc National Planning Foreign Affairs Social Security Foreign Affairs National Planning Crime and Prisons Oil and Coal Insular Possessions Electricity and Regulation of Public Utilities Business Crime and Prisons Crime and Prisons Social Security Relief Insular Possessions Agriculture Transportation Foreign Affairs National Planning Agriculture; National Planning XXIX

Page  XXX Topical Table Rural Electrification Ad- See Electricity and Regulation of Public Utilministration ities St. Lawrence River De-" Electricity and Regulation of Public Utilvelopment ities Seed Loan is Agriculture Silver cc Monetary System Soil Conservation "9 Agriculture Soldiers' Bonus 41 Economies in Government Stabilization It Monetary System State Planning 96 National Planning Subsistence Homesteads 9"4 Agriculture; National Planning Sugar is Agriculture Tariffs 99 Foreign Affairs Tax Evasion 494 Budget and Taxation Taxation cc Budget and Taxation T.V.A. it National Planning Unemployment Insurance" Social Security Unemployment Relief Relief Utilities s Electricity and Regulation of Public Utilities Utility Holding Coin- it Electricity and Regulation of Public Utilpanies ities Veterans' Regulations cc Economies in Government Virgin Islands i Insular Possessions War Debts is Foreign Affairs Water Power Electricity and Regulation of Public Utilities Wild Life" Agriculture Work Relief i Relief Works Program is Relief World Economic and Monetary Conference cc Foreign Affairs W.P.A. 69Relief xxx

Page  XXXI Contents,.GENERAL INTRODUCTION page ix FOREWORD xv TOPICAL TABLE xxi INTRODUCTION 3 CHAPTER I. THE FIRST CAMPAIGN FOR THE GOVERNORSHIP. (NO TE) 11I i The Candidate Accepts the Nomination for the Governorship. October i 6, 19,28 13 2 Extemporaneous Campaign Address (Excerpts), Binghamton, N. Y. October 17, 1928 1 3 Extemporaneous Campaign Address (Excerpts), Jamestown, N. Y. October 19, 1928 2 4 Campaign Address (Excerpts), Buffalo., N. Y. October 20, 1928 30 5 Campaign Address (Excerpts), Rochester, N. Y. October 22, 1928 38 6 Campaign Address (Excerpts), Syracuse., N. Y. October 23, 1928 44 7 Campaign Address (Excerpts), Utica, N. Y. October 25, 19,28 51 8 Campaign Address (Excerpts), Troy, N. Y. October 26, 1928 53 9 Campaign Address (Excerpts), Queens., New York City. October.29, 19,28 54 io Extemporaneous Campaign Address (Excerpts), New York City. October 30, 19,28 6o i i Campaign Address (Excerpts), Bronx, N. Y. October 30, 1928 6,2 12 Campaign Address (Excerpts), Yonkers, N. Y. November 1,V 1928 67 xxxi

Page  XXXII Contents CHAPTER II. GOVERNOR ROOSEVELT'S TWO INAUGURAL ADDRESSES AND FOUR ANNUAL MESSAGES TO THE LEGISLATURE OF NEW YORK. (NO TE) page 73 13 The First Inaugural Address as Governor. January i, 1929 75 14 The Annual Message to the Legislature (Excerpts). January 2, 1929 80 15 The Annual Message to the Legislature (Excerpts). January 1, 1930 87 16 The Second Inaugural Address as Governor. January i, 1931 94 17 The Annual Message to the Legislature (Excerpts). January 7, 1931 100oo 18 The Annual Message to the Legislature (Excerpts). January 6, 1932 111 CHAPTER III. AGRICULTURE, FARM RELIEF AND REDUCTION OF RURAL TAXES. (NO TE) 127 19 A Message to the Legislature on Rural Tax Relief (Excerpts). February 25, 1929 131 20. A Message to the Legislature on Rural Schools and School Taxes (Excerpts). March 4, 1929 134 21 Address at an Annual Farm Dinner (Excerpts), Syracuse, N. Y. August 28, 1929 135 22 Address at State College of Agriculture, Cornell University (Excerpts), Ithaca, N. Y. February 14, 1930 140 23 A Message to the Legislature Recommending Experimentation in Improvement of Dirt Roads. March 25, 1930 144 24 Governor's Statement Outlining Accomplishments in Fulfillment of Program for Agriculture, Farm Relief and ReSduction of Rural Taxes. April 24, 1930 145 25 Address at an Annual Farm Dinner (Excerpts), Syracuse, N. Y. September 3, 1930 149 26 A Message to the Legislature on Farm-to-Market Roads (Excerpts). January 20, 1932 151 xxxii

Page  XXXIII Contents 27 Address before the New York State Grange (Excerpts), Albany, N. Y. February 2, 1932 page 155 28 Governor's Statement upon Approving Bills Providing Additional Credit Facilities for Crop Production. March 17, 1932 157 CHAPTER IV. PUBLIC WATER POWER DEVELOPMENT AND CHEAPER ELECTRICITY IN THE HOME AND ON THE FARM. (NO TE) 159 29 A Letter to Senator Robert F. Wagner on Diversion of Water from the Niagara River. February 9, 1929 167 30 The Governor Proposes a Plan for the Development of the Water Power Resources of the St. Lawrence River. March 12., 1929 171 3 1 The Governor Hails the Agreement on a Bill Creating a Commission to Prepare Plan for Development of St. Lawrence Hydro-Electric Power. January 14, 1930 178 32 The Governor Discusses the History of the St. Lawrence. Power Fight. Address before the State Bar Association. January i8, 1930 1 8o 33 The Governor Transmits the Report of the St. Lawrence Power Development Commission. January 19, 1931 186 34 The Bill to Develop St. Lawrence Water Power Is Introduced. Statement by the Governor. March 4, 1931 193 35 Statement by the Governor on the Opposition's Attempt to Kill the St. Lawrence Power Bill. April 2, 1931 197 36 Radio Address Following Passage of the St. Lawrence Power Bill (Excerpts). April 7, 1931 199 37 A Recommendation for Legislation Permitting Municipalities to Build Their Own Power Plants. February 15, 1932 202 38 An Exchange of Telegrams between Governor Roosevelt and President Hoover on Negotiations for Canadian Treaty for Development of St. Lawrence River. July 9, 10, 1932 203 Xxxiii

Page  XXXIV Contents CHAPTER V. OLD-AGE ASSISTANCE. (NO TE) page 2 07 39 The Governor Recommends the Creation of a Commission to Study the Problem of Old-Age Assistance. February 2 8, 19,29 209 40 Address before the New York Women'Is Trade Union League on Old-Age Security (Excerpts). June 8, 1929 211 41 Governor's Statement on the Report of the Commission on Old-Age Assistance (Excerpts). February 24, 1930 21i6 CHAPTER VI. LABOR LEGISLATION. (NO TE) 219 42 A Recommendation for Specific Bills to Improve Social and Labor Conditions. March 22, 1929 221 43 Address before the State Federation of Labor - A TwoYear Report on Labor Legislation. Buffalo, N. Y. August 27, 1930 222 44 The Governor Approves a Bill Regulating Hours of Labor for Women and Minors. April 20, 1931 225 45 The Governor Endorses a Shorter Work* Week as a Means of Relieving Unemployment. August 25, 1932 227 CHAPTER VII. REGULATION OF PUBLIC UTILITIES. (NO TE) 229 46 A Recommendation for the Creation of a Commission to Study Public Utility Regulation. March 25, 1929 233 47 The Creation of a Commission to Study Public Utility Regulation. April 16, 1929 233 48 Recommendation for a Memorial to Congress on the Power of Federal Courts with Respect to Regulation of Public Utility Rates. January 27, 1930 234 49 The Governor Vetoes Bill for a "People's Counsel" for Public Utility Hearings. April 22, 1930 236 5o Radio Address, on Public Utility Regulation. April 23, 1930.238 51 The Governor Approves Two Bills on Public Utility Holding Companies. April 24, 1930 246 Xxxiv

Page  XXXV Contents 52 The Governor Vetoes a Worthless Valuation Bill for Public Utilities. April 24, 1930 page 250 53 The Governor Approves a Batch of Public Utility Regulation Bills. April 25, 1930 253 54 The Governor Vetoes Another Worthless Bill for Contracts between Municipalities and Public Utility Companies. April 25, 1930 256 55 A Message Urging Regulation of Water Companies and Bus Lines. April 1, 1931 259 56 The Governor Again Urges Passage of Adequate Legislation to Regulate Public Utility Companies. April lo, 1931 260 57 The Governor Makes a Final Effort to Obtain Adequate Legislation to Regulate Public Utility Companies. March 2.,1932 262 CHAPTER VIII. TOWARD THE REFORM OF THE ADMINISTRATION OF JUSTICE. (NO TE) 265.58 The Governor Repeats His Recommendation for a Commission to Study the Administration of justice in New York State. March 21, 1929 267 59 The Governor Vetoes Bill Creating a Commission, Exclusively of Lawyers, to Study the Administration of justice. April 5, 1929 268 6o The Governor Approves Bill Creating a Commission of Laymen and Lawyers to Study the Administration of justice. April 23., 1930 270 6i "The Road to judicial Reform" - Address before the Association of the Bar of the City of New York. March 12, 1932 271 CHAPTER IX. MODERNIZATION OF LOCAL GOVERNMENT. (NOTE) 279 62 Address on Reorganization and Consolidation of Function of Local Government and Their Effect on Taxes. Saranac, N. Y. September 11, 1929 281 xxxv

Page  XXXVI Contents 63 The Governor Persists in His Recommendation for Study and Reorganization of Local Government. April 9, 1931 page 286 64 Address at University of Virginia on the Excessive Costs and Taxes in Local Government. Charlottesville, Va. July 6, 1931 288 65 Once Again the Governor Urges a Study of Local Government to Bring about Economy and Efficiency. February 29., 1932 303 CHAPTER X. BETTER HOUSING 307 66 The Governor Approves a New Multiple Dwellings Law. April 18, 1929 309 67 An Address, on Better Housing Conditions (Excerpts), New York City. February 28, 1930 310 68 The Governor Vetoes a Bill Permitting Multiple Occupancy in Tenement Houses. April 4, 1932 313 69 The Governor Approves a Bill Limiting Cellar Occupancy in Tenement Houses. April 4, 1932 314 CHAPTER XI. PROHIBITION AND REPEAL OF THE EIGHTEENTH AMENDMENT. (NO TE) 317 70 The Governor Advocates Repeal of the Eighteenth Amendment. September 9, 1930 319 71 The Governor Approves a Bill Petitioning the Congress to Take Steps toward Repeal of the Eighteenth Amendment. March 31.,1931 322 CHAPTER XII. THE WELFARE OF THE UNDERPRIVILEGED., THE CRIPPLED., AND THE HANDICAPPED. (NO TE) 325 7:2 An Address on Rehabilitation of the Mentally and Physically Handicapped. Chautauqua, N. Y. July 13, 1929 327 73 An Address before the State Charities Aid Association. New York City. January 17., 1930 330 74 Radio Address on a Program of Assistance for the Crippled. February 18, 1931 334 Xxxvi

Page  XXXVII Contents CHAPTER XIII. EXECUTIVE BUDGET FIGHT- SEPARATION OF LEGISLATIVE FROM EXECUTIVE FUNCTIONS. (NOTE) page 339 75 The Governor Asserts the Fundamental Principles of an Executive Budget and Announces His Determination to Defend Them in Court. April 12, 1929 341 76 The Governor Discusses the Significance of the Executive Budget Victory. Address before the City Club, New York City. November 23, 1929 345 CHAPTER XIV. PUBLIC HEALTH 77 An Address on Public Health and the Development of Saratoga Springs as a Health Center (Excerpts). June 25, 1929 351 78 The Governor Transmits to the Legislature a Report of the Special Health Commission. February 19, 1931 356 79 A Recommendation for the Establishment of County Boards of Health in All Counties. April 2, 1931 360 80 Comment by the Governor on a Report of the Special Health Commission. April 6, 1932 363 CHAPTER XV. PRISONS, PRISON LABOR, PAROLE, PROBATION, AND CRIME. (NO TE) 365 81 Address before the Conference of Governors, New London, Conn. July 16, 1929 367 82 Address on Prison and Parole Problems. New York City. January 18, 1930 376 83 Statement on the Appointment of a Committee to Study Prison Labor. March 12, 1930 382 84 The Governor Reports to the Governors' Conference on Progress in the Suppression of Crime. June 30, 1930 384 85 Address on Probation and Parole before the National Probation Association. New York City. March 17, 1931 387 86 Address on the Unsolved Problem of Prison Labor. New York City. April 30, 1931 391 xxxvii

Page  XXXVIII Contents CHAPTER XVI. THE SECOND CAMPAIGN FOR THE GOVERNORSHIP. (NO TE) page 397 87 The Candidate Accepts the Renomination for the Governorship. October 3, 1930 399 88 Campaign Address (Excerpts), Buffalo, N. Y. October 20, 1930 404 89 Campaign Address (Excerpts), Rochester, N. Y. October 21, 1930 412 90 Campaign Address (Excerpts), Syracuse, N. Y. October 2:, 1930 419 91 Campaign Address (Excerpts), Albany, N. Y. October 24, 1930 426 9,2 Campaign Address (Excerpts), New York City. November 1, 1930 432 CHAPTER XVII. UNEMPLOYMENT, UNEMPLOYMENT RELIEF., AND UNEMPLOYMENT INSURANCE. (NO TE) 445 93 A Statement on Unemployment, and the Appointment of a Committee to Suggest a Plan for Stabilization of Industry. March 29, 1930 447 94 The Governor Commends the Report of the Committee on Stabilization of Industry. November 15, 1930 450 95 Address on Unemployment Insurance. New York City. March 6, 1931 453 96 A Recommendation for a Commission to Investigate Unemployment Insurance. March 25, 1931 455 97 New York State Takes the Lead in the Relief of the Unemployed. A Message Recommending Creation of Relief Administration. August 28, 1931 457 98 A Telegram Urging the Passage of the Federal Emergency Relief Bill. February 10, 1932 468 99 A Message to the Legislature Recommending an Unemployment Insurance Law. February 15, 1932 469 100 A Message to the Legislature Urging Continuation of *Relief of Unemployment Distress. March 1o, 1932 470 Xxxviii

Page  XXXIX Contents ioi The Governor Asks for Public Approval of a Bond Issue to Relieve Unemployment. October 29, 1932 ptage 473 CHAPTER XVIII. LAND UTILIZATION AND STATE PLANNING. (NOTE) 475 102 A Proposal for a Survey of Soil and Climatic Conditions. Address at Silver Lake, N. Y. August 15, 1929 477 103 A Message to the Legislature Formulating a Land Policy for the State. January 26, 1931 480 104 Address before the Conference of Governors on Land Utilization and State Planning. French Lick, Ind. June 2, 1931 485 10 Extemporaneous Address on Regional Planning (Excerpts), New York City. December 11, 1931 495 CHAPTER XIX. SUBSISTENCE HOMESTEADS AND BETTER DISTRIBUTION OF POPULATION. (NO TE) 501 io6 Address before the American Country Life Conference on the Better Distribution of Population away from Cities. Ithaca, N. Y. August 19, 1931 503 107 Radio Address Advocating Distribution of Population toward the Source of Food Supply. November 13, 1931 515 CHAPTER XX. REFORESTATION AND CONSERVATION OF NATURAL RESOURCES 519 io8 Radio Address on the Conservation of Natural Resources as a Function of Government. March 31, 1930 521 109 Radio Address Urging Voters to Support the Reforestation Amendment to the Constitution. October 26, 1931 526 CHAPTER XXI. BANKS AND THE PROTECTION OF DEPOSITORS 533 110o A Message to the Legislature for the Protection of Thrift Accounts in Commercial Banks. March 24, 1931 535 i ii A Message to the Legislature Requesting Additional Facilities for Supervision and Examination of Banks. March 23, 1931 538 VxTZV;x

Page  XL Contents CHAPTER XXII. ANNUAL RADIO REPORTS TO THE PEOPLE ON THE SESSIONS OF THE LEGISLATURE. (NO TE) page 539 1 12 A Radio Report to the People on the 192 9 Session of the Legislature (Excerpts). April 3, 1929 541 113 A Radio. Report to the People on the 1930 Session of the Legislature (Excerpts). March 26, 1930 548 114 A Radio Report to the People on the 1931 Session of the Legislature (Excerpts). April 24, 1931 554 CHAPTER XXIII. MISCELLANEOUS 115 A Message to the Legislature Advocating the Initiative and Referendum. March 23, 1929 563 116 Radio Address Urging a Bond Issue for the Construction of State Hospitals and Other Institutions (Excerpts). March 27, 1929 563 117 A Message to the Legislature on Classification of Civil Service Employees. February 1o, 1930 568 i1i8 Radio Address on States' Rights. March 2, 1930 569 119 Radio Address on the Advantages of Outdoor Life. June 24, 1931 575 120 The Governor Hails the Appointment of judge Benjamin N. Cardozo to the United States Supreme Court. February i8, 1932 58o 121 A Memorandum on the Removal of Sheriff Thomas A. Farley of the County of New York. February 24, 1932 58o 122 Address before the Boy Scout Foundation. New York City. April 8, 1932 584 123 A Tribute to George Washington. Address before the Conference of Governors, Richmond, Va. April 27, 1932 587 124 A Thanksgiving Day Proclamation. November i8, 1932 595 125 Radio Greeting to the Christmas Ship for Puerto Rico. December 21, 1932 595 126 A Memorandum on the Hearing of Charges Preferred against James J. Walker, Filed after His Resignation as -WA

Page  XLI Contents Mayor of the City of New York (Excerpts). December 29, 1932 page 598 CHAPTER XXIV. THE FIRST CAMPAIGN FOR THE PRESIDENCY, 193. (NO TE) 621 PART i Before the Nomination at Chicago, July 15 1932 PART ii After the Nomination at Chicago, July 1, 1932 PART ONE 127 The Governor Enters the First Primary Campaign for the Presidential Nomination. January 22, 1932 623 128 The "Forgotten Man" Speech. Radio Address, Albany, N. Y. April 7, 1932 624 129 "A Concert of Action, Based on a Fair and just Concert of Interests." Address at Jefferson Day Dinner, St. Paul, Minn. April 18, 1932 627 130 "The Country Needs, the Country Demands Bold, Persistent Experimentation." Address at Oglethorpe University. May 22, 1932 639 PART TWO 131 "I Pledge You - I Pledge Myself to a New Deal for the American People." The Governor Accepts the Nomination for the Presidency, Chicago, Ill. July 2, 1932 647 -132 The Candidate Discusses the National Democratic Platform. Radio Address, Albany, N. Y. July 30, 1932 659 133 The Failures of the Preceding Administration. Campaign Address at Columbus, Ohio. August 20, 1932 669 134 Campaign Address on Prohibition, Sea Girt, N. J. August 27, 1932 684 135 "A Restored and Rehabilitated Agriculture." Campaign Address on the Farm'Problem at Topeka, Kans. September '14, 1932 693 136 "The Railroad Mesh Is the Warp on Which Our Economic Web Is Largely Fashioned." Campaign Address on Railroads at Salt Lake City, Utah. September 17, 1932 711 yli

Page  XLII Contents 137 Campaign Address on Reciprocal Tariff Negotiations (Excerpts), Seattle, Wash. September 20, 1932 page 723 138 "A National Yardstick to Prevent Extortion against the Public and to Encourage the Wider Use of that Servant of the People - Electric Power." Campaign Address on Public Utilities and Development of Hydro-Electric Power, Portland, Ore. September 21, 1932 727 -139 "New Conditions Impose New Requirements upon Government and Those Who Conduct Government." Campaign Address on Progressive Government at the Commonwealth Club, San Francisco, Calif. September 23, - 1932 742 140 Campaign Address on. Agriculture and Tariffs at Sioux City, Iowa. September 29, 1932 756 141 "The Philosophy of Social justice through Social Action." Campaign Address at Detroit, Mich. October 2, 1932 771 142 Radio Address to the Business and Professional Men's League Throughout the Nation. October 6, 1932 78o 143 Radio Address on Unemployment and Social Welfare. Albany, N. Y. October 13, 193 2 786 144 Campaign Address on the Federal Budget at Pittsburgh, Pa. October 19, 1932 795 15Campaign Address on Farm Mortgages at Springfield, Ill. October 21, 1932 812 146 Campaign Address on the Eight Great Credit Groups of the Nation. St. Louis, Mo. October 21., 1932 819 147 "I Am Waging a War in This Campaign against the 'Four Horsemen' of the Present Republican Leadership - Destruction, Delay, Deceit, Despair." Campaign Address at Baltimore, Md. October 25, 1932 831 148 "We Are through with 'Delay'; We Are through with 'Despair'; We Are Ready, and Waiting for Better Things." Campaign Address on a Program for Unemployment and Long-Range Planning. Boston, Mass. October 31, 1932 842

Page  XLIII Contents 149 Campaign Address before the Republican-for-Roosevelt League on Cooperation between Executive and Legislative Branches in Government (Excerpts), New York City. November 3,,1932 page 856 -150 "I Believe that the Best Interests of the Country Require a Change in Administration." Campaign Address at Madison Square Garden, New York City. November 5, 1932 86o CHAPTER XXV. BETWEEN ELECTION AND INAUGURATION -'NOVEMBER, 1932, TO MARCH 4, 1933. (NO TE), 867 151 An Exchange of Letters between President Hoover and President-Elect Roosevelt. November 1.2, 1932, and November 14, 1932 873 152 A Second Exchange of Letters between President Hoover and President-Elect Roosevelt. December 17, 19329, to December 21, 1932 877 153 Address at the First Inauguration of Governor Herbert H. Lehman of New York. January 2, 1933 -884 154 Informal Extemporaneous Remarks at Sheffield, Ala., on Muscle Shoals Inspection Trip. January 21., 1933 886 15 Informal Extemporaneous Remarks at Montgomery, Ala., on Muscle Shoals Inspection Trip. January 21, 1933 887 156 Informal Extemporaneous Remarks at Miami, Fla., Immediately Preceding Attempted Assassination of the President-Elect. February 15., 1933 889 INDEX 891 xliii

Page  XLIV

Page  1 The Genesis of the New Deal

Page  2

Page  3 Introduction T HE TITLE Of this volume, The Genesis of the Newv Deal, is intended to indicate that many of the objectives and policies of my Administration as President had their origin during my term as Governor of New York. The maintenance of the processes of democ-,racy and the promotion of the ideal of social justice which are referred to in the General Introduction to these volumes are, in the main, the ends which I sought as Governor with the same consistency as I did during my term as President. It must be borne in mind, of course, that the field of activity of State Government is very limited as compared with that of the Federal Government. In relief to agriculture, in protection of labor, in regulation of utilities, in attainment of economic security, in protection of investors and bank depositors - in all these and in all our other efforts to bring about a broader social justice - the extent of the action which can be taken by any State is, of course., circumscribed by the physical boundaries of the State and by the action or lack of action by sister States. There are certain other restraining features which must be taken into consideration by the Legislature and Governor of a State in formulating a program of social legislation. Restrictions cannot be placed upon business and industry and finance in any single State which will place them at an undue disadvantage with competing business and industry and finance in neighboring States. Of course, caution with respect to this feature can at times be carried to unnecessary extremes. In fact, opponents of reform have rushed forward on nearly every occasion to' urge that the slightest departure from laissez-faire would cause business and industry to leave their State and go elsewhere. I have always had considerable doubt that any large number of reputable business men actually have moved their plants out of the State of New York because of the advanced social legislation of that State. But there have been some who have sought to exploit the cheaper labor of other regions and obtain an advan3

Page  4 Introduction tage over their New York competitors in terms of human misery. It is also true that some products made in some other States, under sweat-shop conditions, have come into competition with products made under more enlightened conditions in New York State. This situation has often been exaggerated and has been frequently urged as an argument for blocking action to remove even the most glaring social inequalities. The effects of this type of competition, however, must always be considered in adopting any plan for social reform which is restricted to any individual State. Good results from social legislation in any one State cannot be obtained to the same degree when confined to that State as when it is made nationwide. For example, I am convinced that the Federal legislation which I have been recommending for more than a year, to fix a minimum wage and a maximum number of hours with some degree of uniformity throughout the Nation, will help business, industry and agriculture as much as it will help underpaid workers. It will furnish to many millions of people greater purchasing power with which more products of our factories and our farms may be bought. It will serve directly to stimulate greater production and sales in our factories and on our farms. But if a similar statute were passed for any single State, the increased purchasing power might or might not benefit the business and industry of that particular State to the same degree, for it might well be spent on the products of other States and produce its effects outside the State. The same result follows in many other fields of reform. Where artificial State lines limit the effects of policies which should apply to entire correlated geographical areas or to the whole of one industry, the results can never be the same within the particular State as when action is taken along national lines. It is interesting to note, as I have myself frequently seen, that opponents of reform and social betterment often object with one breath to State legislation on the ground that it drives industry to other States, and, with the next breath, decry efforts to obtain

Page  5 Introduction Federal legislation on the ground that it is interference with purely local matters. Of course, the truth is that these individuals wish no such legisl ation, either by the State Legislatures or bythe Congress. Another major restriction on the benefits of social legislation by State action is the inability to give adequate consideration to interdependence between different economic groups, between different industries, between finance and agriculture, between labor and industry. From the time of my acceptance speech in Chicago, and even before, I have consistently and continuously stressed the importance to our national well-being of this interdependence. When one is at the head of the Government in a single State, it is obviously impossible to correlate policies of that State with the remaining forty-seven States in order to meet the necessities of interdependence in our modern economic life. Furthermore, there are matters which are exclusively of Federal jurisdiction - such as the monetary system, tariffs, foreign trade, interstate commerce -which always have an immediate effect on attempts to meet social and economic problems by State action. These matters cannot constitutionally be handled even partially by any State Government to assist in effectuating a program of reform. It is with these various limitations and restrictions that the title of this first volume of papers and addresses, The Genesis of the New Deal., should be taken. I do not mean to imply by that title that my Administration as Governor of New York was in any sense a counterpart of what came later. The objectives were the same. But for all the reasons I have mentioned, and for many others, it was impossible to use all the various methods to attain those objectives that were available during my term as President. In so far as it was possible to adapt statewide measures to the attainment of a broader social justice, it was done. With these differences between action along State lines and action by the national Government, I trust that this volume of Public Papers and Addresses for the years of my Governorship 5I

Page  6 Introduction may be recognized as the beginnings of the general aims and purposes of the New Deal. I trust that there will be found between this first volume and the remaining volumes a bond of consistency and continuity of objectives, and that occasional variations of method and detail coming from lack of Government precedent, from insufficient available information and from need for experimentation will not obscure the close similarity of broad purposes toward which we were striving. I had thought of these things for many years and had talked of them too. The Governorship was the first opportunity which I had to do something about them in a practical though limited way. In the pages of this volume, is the story of what was done during my Administration as Governor with respect to old-age security, development of electricity from water power, adequate regulation of public utility operating and holding companies, unemployment relief by direct aid and through public works, unemployment insurance, wages and hours of labor, assistance to agriculture, land planning and land use, improvement in the administration of justice, reforestation, aid to the blind, to crippled children, to dependent mothers, and many other steps in progressive government. The growth from this type of State action to the broader front of national action which came with the New Deal was a natural one. The growth and expansion were promised in the Democratic National Platform of 1932. They were promised during the campaign of 1932. They were approved by the election of 1932. They were started on March 4, 1933. It has been noticed by hostile political writers that in some instances recommendations made by me as Governor apparently do not fully square with my later recommendations to the Congress. True enough. But what they fail to call attention to is that while I was Governor, demanding action along State lines, the national Administration in many instances was consistently blocking efforts by the States to curb unsocial activities by progressive State legislation.

Page  7 Introduction It is an interesting fact that during the, past generation certain large corporate interests, especially in the utility field, have sometimes adopted the practice of "playing both ends against the middle." When an Administration favorable to special privilege is in power in Washington these corporations beg for Federal control in order to circumvent those State Governments and public service commissions which are trying to enforce the original conception of a public utility in the public good. When, however., we have a Federal Administration devoted to protection of the consuming public, these same corporations call loudly for State control only. During my term as Governor, for example, some of these companies relied on the sympathy of the national Administration to block every possible effort of mine to obtain adequate control and supervision in the State of New York. When I became President they transferred their efforts and their affections by an appeal to the old slogan of "States' Rights."9, In saying this I am not referring to the Courts but rather to broad Government policies. In Albany I was forced to work for State action because of the attitude of Washington. When I went to Washington I was able, by reversing the national policy, to give aid to States that wished to help themselves along progressive lines. For example, during the famous New York Telephone rate case the public was outraged by its meandering progress through the Federal Courts for seven long years. I protested this procedure in my message to the Legislature on January 27, 1930 (see Item 48). After the new national Administration started in March, 1933, with a Department of justice wholly sympathetic with its aims, it w as clear to me that Federal Courts in the future would never handle similar cases with such undue and unwarranted delay. While I was Governor also, on many occasions I spoke in favor of "Home Rule" in its application to problems of government which could be handled properly by State legislation, and decried the encroachment of the Federal Government into such fields. It ý7

Page  8 Introduction must be remembered that those were the days of Prohibition, when the Federal Government had stepped in to regulate from Washington the personal lives and habits of its citizens. It was that type of unwarranted extension of power into purely State matters that I was opposing. However, an analysis of the occasion and subject in those speeches in which I stressed "States' Rights" shows no inconsistency with my advocacy as President of Federal legislation covering nationally such subjects as cannot be adequately and properly dealt with by forty-eight States separately. In New York, as later in the Nation, I was able to accomplish reform and progress only because the public was ready for them, wanted them, and was willing to help me carry out the people's will. As Governor, it was often necessary for me to appeal for public support over the heads of the Legislature and sometimes over the almost united opposition of the newspapers of the State. In several instances, what was passed by the Legislature was literally forced from the Republican leaders by demand of public opinion which never hesitated to make its views known and which found ways of making them known. The use of the radio by me in those days not only to appeal directly to the people, but also to describe fully the facts about legislation which were not always given by many press reports, was the beginning of similar use of the radio by me as President in what have come to be known as "Fireside Chats." The radio has proved to be a direct contact with the people which was available to only two Presidents before me. It has been invaluable as a means of public approach and will, I know, continue to be so in the years to come. I do not mean to say that I was always successful with proposed legislation. In much of what I tried to do, I failed. But the general direction was right. The impulse of those years has since been continued in the State of New York. And that is the really most important contribution which any Administration can make to history- to provide direction toward broad objectives, to see that the great mass of the people understand the objectives, 8

Page  9 Introduction to make sure that the popular will insists upon them. In that way changes of administration and shifting of leaders cannot succeed in blocking the march of progress. Washington, D. C. February 15, 1938 9

Page  10

Page  11 I The First Campaign for the Governors hip INTRODUCTORY NOTE: THIS CHAPTER contains some of the speeches made by me during my first campaign for the Governorship in 1928. I was nominated by the Democratic State Convention at Rochester on October 3, 1928. I accepted the nomination only after very urgent persuasion by Governor Alfred E. Smith, who was at that time campaigning as the Democratic candidate for the Presidency of the United States. During the Rochester convention I was in Warm Springs, Georgia, continuing my treatment for infantile paralysis, and my doctors had strongly advised me against reentering public life at that time. It was against their advice and largely because of the thought that I could be of service in promoting the cause of liberal and progressive government in the State and, through the election of Governor Smith, in the Nation, that I finally yielded. Before my campaign for the Governorship began I had made several speeches in behalf of the candidacy of Governor Smith for the Presidency. Included among these were speeches at Atlanta,. Ga., September 26, 1928; Manchester, Ga., October 2, 1928; Columbus, Ga., October 5, 1928; Cleveland, Ohio., October 6, 1928; Boston, Mass., October 12, 1928; New York City, October 15., 1928. As will be seen in the speeches in this chapter,, besides discussing various State issues, I actively advocated the election of Governor Smith in practically every speech made. In addition to the speeches included in this chapter I made other speeches in New York during my campaign for the Gov1 1

Page  12 Note: The First Campaign for the Governorship ernorship in 1928, at the following places: Oswego, October 18; Elmira, October 18; Corning, October 19; Hornell, October 19; Wellsville, October 19; Olean, October 19; Salamanca, October 19; Dunkirk, October 2o; Batavia, October 22; Canandaigua, October 23; Seneca Falls, October 23; Oswego, October 24; Watertown, October 24; Boonville, October 25; Rome, October 25; Herkimer, October 26; Schenectady, October 26; Albany, October 27; New York City, October 31, November 2, November 3. They have not been printed here because of lack of space. My opponent in this campaign was Hon. Albert Ottinger. The vote was Roosevelt 2,130,193, Ottinger 2,104,629. 12

Page  13 1 ([ The Candidate Accepts the Nomination for the Governorship. October 16, 1928 (Alfred E. Smith - Progressive government-- Water power - Administration of justice - Farm relief - Improvement in local government.) ACCEPT the nomination for Governor because I am a disciple in a great cause. I have been enlisted as a private in the ranks for many years and I cannot fail to heed a call to more active service in a time when so much is at stake. This cause needs little explaining to the citizens of the State of New York. We have a right to hold our heads high, for we have made a proud record in improving the science and practice of State Government. Where we have led, our sister States now follow. Indeed, the man to whose leadership this progress has been due has been selected by our party to bring to Washington the same constructive genius which he has shown in Albany. I am confident that the people of the United States will ratify this choice. Study of the trend of public will in New York during the past few years makes this fact clear -our State is committed to the principle of progressive government. Under magnificent leadership we have first aroused public interest, and have then obtained public approval for a program of governmental improvement which has few parallels in any similar period of time. It is a program which has caught public imagination, partly because of its own inherent soundness and humanity, but equally because of the clear and honorable personality of its principal exponent, the present four-times Governor of our State. Let it be remembered, however, that the ground won was fought for, inch by inch. An overwhelming majority of voters in our past elections have made it clear that this opposition has not had their consent or approval. We must lay the blame and the responsibility on that group of Republican leaders who have either lacked vision or have sought partisan advantage by injecting politics into public problems which should have received a disinterested cooperation from all leaders regardless of party. I '3

Page  14 Thne Candidate Accepts the Nomination hope that if this little group of leaders is still to remain in power in their own party, the voice of the electorate this fall will make it clear even to them that leaders must move forward and not in circles. For much remains to be accomplished - not for this party or for that party, but for the good of the whole State. Petty partisan opposition such as these leaders have shown slows up the wheels of progress. But, with them or without them, we propose to go through to the goal. We rejoice in the fact that the reorganization and consolidation of the administrative machinery at Albany is a thing done; but we must pay close attention to its actual operation and be prepared to improve it further in the interest of good business and clearly defined responsibility. I want to live to see the day when the business men of the Nation as well as political leaders will look to Albany as a model for business efficiency, which, in line with the most advanced modern thought, takes into consideration the human element as well as mere dollars and cents. In the field of public works we are in the process of catching up with the fulfillment of needs that go back fifty years. We can be very certain that every dollar expended is justified by considerations of humanity and of common sense. In social legislation, in education, in health, in better housing, in the care of the aged, we have gone far, but we must go farther. We are, therefore, face to face with the first great issue of the State campaign: Shall the State of New York carry through, consolidate and make permanent the great reforms which will for all time attach to the name of Alfred E. Smith? My answer is "Yes." Finally, there is the even broader question of the years to come. This State is headed in the right direction. But beyond the need of preserving what we have gained is the equal need of improving our governing methods each year as rapidly as civilization itself expands and improves. Progress means change. A perfect system of 19 18 may be outworn ten years later. The strides of science and invention, the shifting of economic balance, the growing feeling of responsibility toward those who need the

Page  15 Thne Candidate Accepts the Nomination protection of the State, call for ceaseless improvement to keep up to date those personal relationships of the individual to other individuals and to the whole body politic which we call Government. Four examples occur to me. First of all, these ten years have brought about a great change of economic conditions in regard to the use of power. The people own vast water-power resources and by the far-seeing insistence of our Governor were saved at the eleventh hour from the loss of control of a large portion of those resources. The time has come for the definite establishment of the principle as a part of our fundamental law that the physical possession and development of State-owned waterpower sites shall not pass from the hands of the people of the State. I would also speak very briefly of a subject that goes deep to the roots of effective government: the system by which justice is administered. I am confident that the procedure of both civil and criminal law has failed to keep pace with the advancement of business methods and with the needs of a practical age; that this procedure is too costly, too, slow, too complex; and that the present methods are at least in part responsible for disregard of law and for many miscarriages of justice. It is a problem of the greatest magnitude, but that is no reason for failing to start to solve it, no matter how long its completion may take. It should be studied not only by the judiciary and the bar, but we should also bring to the solution of this problem the intelligence of the ablest citizens in other fields of endeavor. We must realize also that the ten years since the War have brought extraordinary difficulties to the millions who live on the farms. While there have been prosperity and growth in the cities, their measure has not extended to the rural communities. This is in part a national problem, but it calls also for immediate and disinterested study in our own State. In the final analysis, the progress of our civilization will be retarded if any large body of citizens falls behind; and I am confident that those who live in the cities of this State will be glad to cooperate in initiating measures

Page  16 Campaign Address, Binghamton, N. Y. for the improvement of existing conditions in the agricultural sections. Last of all, the splendid reorganization of our State Government calls for extension of it to the lower units of county and town government. Nobody with knowledge and honesty pretends that the present system is either economical or productive of the best results. I hope that this coming year the State will give this subject the attention it deserves. The other great issue in this campaign is therefore this: Do we as citizens want to undertake new improvements in our governing methods to keep pace with changing times? I stand for an affirmative answer. I am confident that the people of the State of New York are not content with preserving civilization, but that they have the will to improve it. They are in this fight to win, and I fight with them, not against them. ~IExtemporaneous Campaign Address (Excerpts), Binghamton, N. Y. October 17, 1928 (Alfred E. Smith - Reorganization of Government - Religious bigotry in the national campaign.) Governor Walker, and my friends of Binghamton: I w~s very much moved tonight, and so were my associates on the Democratic State ticket, at the perfectly splendid reception that you good people have given us, and I hope that you will tell your neighbors and friends how very deeply we appreciate it.... This was to have been my first speech of the active campaign. That was the intention on the par t of everybody, until I left Jersey City this morning, when the whole thing was knocked into a cocked hat - first at Middletown, and then at Port Jervis, and then at Callicoon, and then at Hancock, and then Neponsit, and then at Susquehanna. So this is the seventh speech of the campaign. --. I wonder if we people in the State of New York have any con16

Page  17 Campaign Address, Binghamton, N. Y. ception of what a perfectly splendid thing it has been for our State to have Governor Alfred E. Smith nominated for the Presidency. Everywhere that I go, whether it be in the South or in the Middle West or New England, people come up to ask me questions about the reorganization of the Government of the State of New York, about our humane legislation, about our public works, about all the great things of which we are so proud. The State of New York today stands right up on a little pedestal among all the States. They are all looking at us and they all think that. we are fine. And one reason why this Governor of ours is going to carry a great many more than a majority of the forty-eight States in the Union is because people in the other States know that he put our State up on that pedestal. I cannot take up all the subjects tonight, but I do want to talk particularly about the practical reorganization of State Government, of which we are all so proud, and which is bearing fruit in the Legislatures and the administrations of other States of the Union. The record that Governor Smith has made in four years in that regard, should properly be compared to what has been going on in the Federal Government during the same time. I am not so certain whether I told the story of the four bears when I was last in Binghamton in the campaign of 1920. I probably did, because in that national campaign both parties were talking about the need of reorganizing our Federal Government. Down in Washington, back' there in 19 19 and 1920o, the situation was just as bad as it was in the State of New York three years ago. They had, I think, 170 or 1 8o different departments and commissions and bureaus and boards and institutes and all the other things. In the last year of the Wilson Administration, the Wilson Cabinet made a very careful study, looking to a consolidation and reorganization of all of this governmental machinery. I spent many weeks during that campaign going up and down' the United States, clear out to the Coast, down South, up in New England; and almost everywhere I went I used to tell the story about the four bears. There are four different kinds of bears in the United States, and, of course, all these bears come under the I17

Page  18 Campaign Address, Binghamton, N. Y. jurisdiction of one Government department or another. I think it is the brown bear that comes under the jurisdiction of the Department of the Interior, and I think the black bear comes under the Department of Agriculture; and the Alaska bear comes under the Department of Commerce; and jurisdiction over the grizzly bear is held by the Department of War. That has been going on from time immemorial in Washington. Each bear - the care of the bear and everything else about the bear - falls under a different department, depending on the genus. of the bear. And I am told confidentially that sometimes there is a most awful mixup, because sometimes a black bear falls in love with a brown bear, and then nobody knows under what department the puppies belong. Well, it is not a very funny story, but it was used quite effectively in the campaign of 1 920, and during that campaign Senator Harding, the Republican candidate for the Presidency, used my story about the bears. He used the story, and he claimed that if he got into power he would accomplish great things in reorganizing the departments of the Government. Thereafter, he got into power, and we poor Democrats were thrown out into the cold. He put in a Cabinet of the best minds. Perhaps it is best that I do not recall all the names of that Cabinet. Well, one of them was the present Republican candidate for the Presidency, the Secretary of Commerce. I believe that it is perfectly true that President Harding gave to Mr. Hoover the task of drawing up a plan for the consolidation of the 1 Go or 170 departments, bureaus and commissions of the Federal Government. Mr. Hoover drew up a plan, and the chief feature of the plan was the consolidation of nearly all of the Federal Government machinery into Mr. Hoover's own Department of Commerce. The other members of the Cabinet did not seem to like it, and after a number of lengthy discussions the plan disappeared into a pigeon-hole in someone's desk. It stayed there until 1924, and then President Coolidge, running for election, took out the plan, dusted it off, held it up to the audience of the United States, and said "Now, if we are returned to power we will put through this great plan of reorganization and consolidation." i80

Page  19 Campaign Address, Binghamton, N. Y. The people then elected him, whereupon he and Secretary Hoover forgot all about it. The plan again went into a pigeonhole, and there it stayed until last June, four years more. And then, to my joy, because it had gone clean out of my head, when Secretary Hoover made his speech of acceptance in August, he trotted out my story about the four bears. So, my friends, for the third time they are asking you to believe in their promise. There is the same old collection of departments and boards and commissions today that existed on October 17, 1920; only, a few extra ones have been added for good measure. Now Mr. Hoover, hoping to succeed Mr. Coolidge and Mr. Harding, has trotted out the same old promise. Two men have disregarded the promise. Is the third man likely to carry it out, the third who has served as a part of the official family of the other two? 0. There is a particular reason why I wish this campaign could go on for another three months instead of another three weeks. I refer to the reason that you all know. I refer to a reason that is particularly well known around Binghamton. But it is not half so bad here as it is in other States. I have just come from the South; and I have seen circulars down there in the Southern States that any man or woman in this audience would be ashamed to have in his home. I have seen circulars that were so unfit for publication that the people who wrote and printed and paid for them ought not to be put in jail, but ought to be put on the first boat and sent away from the United States. Down in the South and out in the West, I have had people come up to me and talk to me about the Eighteenth Amendment to the Constitution, complaining about us in New York, because., they said, we do not care anything about the Eighteenth Amendment to the Constitution. Then those same people, in the same breath, would say that they would not vote for Alfred E. Smith; and they had never read and did not care to talk about the First Amendment to the Constitution of the United States, the one guaranteeing religious liberty throughout the Nation. And the curious part of it is this: I have noticed in a fairly extensive trip

Page  20 Campaign Address, Binghamton, N. Y. around the country that this un-Americanism, this assault on one of the most fundamental principles on which our country was founded, is most widespread in those sections where there is least education. You go to any State, and you will find that the religious bigotry in this campaign is more glaring in the out-of-the-way farms and hills and valleys and small towns, where there is no contact with the outside world. You do not find it in cities to anything like the same extent. Just after I got down to Georgia, an old friend of mine in a small country town, a farmer, came in to see me, and said, "Mr. Roosevelt, I am worried. A lot of my neighbors, all Democrats - we are all Democrats down here - say that they cannot vote for Governor Smith, and I don't know what the reason is. But there must be some good answer. Will you tell me so that I can go back and talk to them? They tell me, these neighbors of mine, and they show me printed handbills saying that if Governor Smith becomes President of the United States, the Methodist and Baptist marriages over here among our neighbors will all be void and that their children will be illegitimate." Yes, you may laugh; but they were not laughing. They thought it was true; and they were honest, law-abiding citizens. They did not have the education, the contact, to know better. Oh, I could go on and tell you a thousand stories along that same line. It was upstate in New York, over near my section of the Hudson River, that a young Irishman was running for office, a boy who had been born up there in Dutchess County and who was running for office of, I think, Town Assessor. He was going around before election seeing his neighbors, and one evening he was passing a farm, and he went to call on the farmer with a good deal of trepidation to ask the farmer to support him. The farmer said to the young Irishman, "Yes, I will be glad to support you in this election. I have known you, you are a fine young fellow, you are a good influence in the community." This young man said to the farmer, "I greatly appreciate your support. But I know you won't mind my telling you that I am a little surprised, because I 20

Page  21 Campaign Address, Jamestown., N. Y. had understood that you were opposed to Catholics." The farmer, stepping forward, and putting his hand on the young man's shoulder, said, "My boy, you have got it all wrong. I am not opposed to Irish Catholics. What I am opposed to is those Roman Catholics." (Laughter.) I believe that the day will come in this country when education - and., incidentally, we have never had a Governor in the State of New York who has done more for the cause of education than Alfred E. Smith - when education in our own State and in every other State, in the cities and the hamlets and the farms, in the back alleys and up on the mountains, will be so widespread, so clean, so American, that this vile thing that is hanging over our heads in this Presidential election will not be able to survive. It may be years to come, but I believe that this year we in the State of New York have got beyond those days of prejudice and bigotry. I believe that in our State we have come to visualize the right, because I like to think our education is high enough to make that possible. And so you see that I have treated this delicate subject from the point of view of one who cares for the future of the country, from the point of view of one who wants to eradicate ignorance, because ignorance is at the bottom of it all., and let that man whom that cap fits put it on.... 3 ~ Extemporaneous Campaign Address (Excerpts), Jamestown, N. Y. October 19, 1928 (A ifred E. Smith - State 'program for agriculture - Republican neglect of farmers - Land use.) Mr. Chairman., my friends of Chautauqua County: TONIGHT, partly because of the fact that I have been coming through agricultural counties and partly because I know that for many years Chautauqua County has been one of the greatest agricultural counties in the State of New York, I want to talk to 2l11

Page  22 Campaign Address, Jamestown, N. Y. you about a subject that is of vital importance to you who live in the cities, no matter whether they are cities of the size of Jamestown or of Buffalo or of the greatest city of all, with its seven million people. It is a subject that perhaps does not seem very close to us in the cities, but actually it is affecting our daily lives and our pocketbooks, and even more than that, it is going to affect the future of our children. It is a mighty broad subject, and let me sum it up in one or two sentences by way of an explanation. In the early days of this Republic, at the time of the Revolution, 95 percent of the population of the thirteen States lived on farms; only 5 percent, in the cities. Gradually that farm ratio has decreased, very slowly during our first one hundred years; more rapidly during the next twentyfive; and during the past twenty-five years a situation has been brought about that is serious to our future. We think of the agricultural population of this country as the backbone of the Nation, do we not? We were taught that in our school books., and yet today fewer than forty million people out of our one hundred and ten or one hundred and fifteen million live on the farms; and every single day that passes, more and more of them are moving into the cities. I do not quite like the idea that some scientists and professors have, that we are approaching with rapid strides the synthetic age, when all of our food will be produced synthetically instead of being grown in the ground; that when we get up in the morning we shall go to a bottle and take out a pill, labeled "Two poached eggs" (Laughter), and go to another bottle and take out another pill labeled "Corn flakes and cream," and still another pill labeled "One cup of coffee." Of course, that may be in store for future generations of Americans., but I hope it will not happen in your day or mine. Now we are confronted with this present situation, the increasing drift of the rural population into the cities. There are two causes for it, both essentially economic. The first is the attraction of the city. It is mighty slow in these modern times to live on a farm. But we are rapidly overcoming that through the advent of 22 c

Page  23 Campaign Address, Jamestown,, N. Y. the automobile and of good roads, and I do not have to tell you people in this State what has happened to the roads of the State under the administration of Alfred E. Smith. But there is another reason beyond the question of where the young people can have the best time. There is the practical question of how you can best make both ends meet; how you can best feed yourself and your family and put a little money into the savings bank. Every day that goes by - between sunrise this morning and sunri 'se tomorrow morning - one thousand farm families will have left their farms in the United States. That sounds almost incredible, does it not? Not farm population, but farm families. Nearly a thousand abandoned farms every single day in the year! In one part of the country alone, out there in the corn belt, four hundred and forty-four farms are being abandoned from day to day. They are not being abandoned for anything but the good economic reason that the farm families cannot make both ends meet by staying there.... Back in 1920, after the close of the World War, there began the present decline of agriculture. I do not think there is anybody in this audience who will go so far as to say that there has not been a drastic decline in agricultural conditions. I have heard a great deal today about the grape industry in this country, for instance. Back there in 1 920 both the Republicans and Democrats in their platform planks promised some kind of relief to the farmer. They were pretty vague. I do not think either party knew exactly what ought to be done. But the Republicans came into power, with their Republican President and a Republican Congress, and it was assumed that they would try to carry out their pledges.' During the first four years, although the agricultural situation was daily growing worse, nothing was accomplished. Various bills were introduced in Congress, but they did not even pass. In 1924 there came another Presidential campaign. In that campaign both parties again promised some kind of relief. The promises still were fairly vague, although by that time expert agricultural opinion in this country was headed toward a pretty definite program.

Page  24 Campaign Address, Jamestown., N. Y. Again in that year the Republican Party won. They elected a Republican President. They elected a Republican Congress. And during these past four years down in Washington, the whole Nation has been interested in the struggle to obtain farm relief. Now, whether it was the fault of the Republican Party, either of their President or of their national Legislature, that nothing was done is quite immaterial. The Congress passed the first agricultural relief plan over a year ago, and it was vetoed by the Republican President. This past spring they passed another somewhat similar plan, passed it both in the Senate and in the House, and that was also vetoed by the Republican President. The result is that they now come into this third campaign this year pledging once again that they will give some relief to the farmer. If you will read the Republican platform and in connection with it the speeches on farm relief made by President Coolidge, you will find that the Republican attitude at present on farm relief is covered by a general pledge of help in the first place, and secondly by the suggestion that they will work it out in some way through the expansion of the cooperative movement among the farmers, and that they will endeavor in some way to finance the general farm situation. The whole plan is very vague; and when you come down to what the agricultural interests in the wheat and cotton and corn belt States are chiefly interested in, namely, the question of dealing with surplus crops, both the Republican platform and the Republican candidate have been singularly reticent. Nobody knows today what the exact attitude of Mr. Hoover is in that regard. On the other side, the Democrats, both in their platform and through their candidate, have recognized that the crux of the matter,, the meat of the cocoanut, is dealing with this problem of the surplus crops. Governor Smith in his campaign speeches has pledged definitely that if he is elected on November sixth, he will immediately call together the best farm experts that he can find to devise a definite way and means for taking care of this exportable surplus.. 24

Page  25 Campaign Address, Jamestown., N. Y. The Democratic Party has not any record of performance on farm relief for the past eight years, for the very simple fact that nationally we have not been in power. On the other side, the Republican Party has a record of eight years of broken promises and. failure to accomplish anything. This year the Republican Party is again vague, and I think that every person in the land feels that too. The Democratic Party, on the other hand, is pretty specific as to what they intend to do about farm relief. Why have I talked all about this national situation when I am running on a State ticket? For two reasons: In the first place, I am just as much interested in the election of the national Democratic ticket as I am in that of the State Democratic ticket. And in the second place, agriculture in any one State, while it may be a State problem, ties in necessarily in a thousand different ways with agriculture in the other States, in other words, with the whole national problem.. Governor Smith well said in his Rochester speech the other day, "I have been reading the agricultural plank of the Republican State platform, and there comes to me, again and again, this thought - Oh, how the Republican Party loves the farmer in October." And if you will read that Republican platform, you will agree with me and with him that you can reduce the twentyseven long lines that it contains to this simple sentence: "We Republicans love our farmers.".00 Now, on the other side what do the Democrats in their State platform say of this problem of farm relief. The Democratic platform is far more specific, because it first gives specific examples of definite helpfulness to the farmer and his problems under the Administration of Governor Smith, and then goes on to pledge certain new efforts to give further help. That is the important part of it. These pledges are: first, to name a commission of experts to study the problems of distribution and to make definite constructive recommendations; second, to give scientific study and investigation to the whole farm assessment and tax situation in order to obtain a fair adjustment of the farmer's taxes.. 0. I was born and raised on an up-State farm. I am living there 25P

Page  26 Campaign A ddress, Jamestovn., N. Y. today. Therefore I am not boasting, when I state in very simple words that all my life I have had a deep and vital interest in farm problems of all kinds; and I might add that I know by personal experience how difficult it is at the end of each year to make both ends meet on a farm, let alone to make any profit on it. I do know the incontrovertible fact that in every county in this State more and more farms are being abandoned. Today, in coming into Chautauqua County, I noted the unanswerable fact that in vineyard after vineyard thousands and thousands of tons of grapes have been allowed to rot on the vines. As I came along the road today I saw in Steuben and Cattaraugus Counties - leading potato-growing counties of the State - potatoes advertised for sale on the road at sixty-five cents per bushel. Two potato growersDemocratic Committeemen they happened to be - told me that the best they could get for mighty good potatoes alongside car was only thirty-five cents a bushel. Does anyone think that these potato growers are getting rich? At these prices these potato. growers will find it difficult to pay for their fertilizer bills. In this County of Chautauqua alone I understand that 389 farms, totaling over 31i,000 acres., are now being advertised for sale for unpaid taxes for the tax year 1 927. This is an area greater than that of any single town in Chautauqua County, except the township of Chautauqua itself. It seems to me that is pretty significant, and I could go on and give you similar statistics for farms abandoned and for tax sales in every single one of the rural counties of New York State. And yet they say there isn't any farm problem, and they go on and say that it is silly for any Democrat to charge that we have not the most superabundant prosperity all over our land., I cannot help wondering a little how long Republican farmers in up-State counties are going to continue to hope for relief from their Republican leaders and legislators. These leaders and legislators have been going on year after year, talking platitudes, and watching the farm population of their home counties decrease and their agricultural lands revert to uncultivated wastes. It is a simple matter of record that the Republican Party in -26

Page  27 Campaign Address, Jamestown, N. Y. Albany and in Washington has been devoting most of its energies to building up an industrial development in the country. They have failed utterly to give anything to the plight of the rural population but fine words.... And now I am going to make a somewhat unusual statement in a campaign for the Governorship. Most people who are candidates get up and say, "I subscribe to everything that is said in the State platform." Well, I think I can take about everything there is in our State platform. Part of it I might have expressed differently if I had been in Rochester instead of in Georgia at the time. But I am perfectly willing to go along and say, "I will stand on our Democratic State platform." But - and this is the unusual part - I go even further than the Democratic State platform, and I offer an ultimate objective for the State to aim at, even though it may take a long time to attain the whole of that objective. I am satisfied with those two planks in our present platform; I am satisfied that those two pledges are excellent, the pledge for a careful study, and the pledge for investigation of that farm tax situation. Beyond those two pledges, let us ask ourselves just what we are aiming at. What is the goal? Put into plain language, it is just this: I want to see the farmer and his family receive at the end of each year as much for their labor as if they had been working not on a farm, but as skilled workers under the best conditions in any one of our great industries. I want our agricultural population, in other words, to be put on the same level of earning capacity as their fellow Americans who live in the cities. Toward that end the Democratic platform urges that immediate study be made of the farm problem of distribution of farm products, to the end that the unnecessarily high differential between what the farmer receives and what the consumer pays may be materially lowered, giving a better price to the farmer for his products, and a lower cost to the consumer for what he buys. Right there is just one place where the city dweller comes in. You know that the cost of living to you in the cities has gone up, gone up a lot, hasn't it - the cost of food, the cost of feeding the 27

Page  28 Campaign Address, Jamestown., N. Y. children., the cost of feeding everybody in the household. You do not stop to think of some of the reasons why it has gone up; and you do not stop to think, while you are paying such and such a figure for such and such a farm product, how much the poor devil and his family back there on the farm who grew that product for you got for it. You do not bother to consider that the price they got for it was anywhere from, say, 20 to 40 percent of what you are paying for it, that somewhere out of that dollar you are paying for it, somebody along the road got from sixty to eighty cents and the farmer only got the balance - and those are pretty conservative figures. I suppose a complex situation such as we have in our modern life will bring that thing about. But it has been going on for a number of years now, and it is time that we found out two things: How, out of that dollar, the farmer can get more, and how, out of that dollar., you will have to pay a bit less. And then there is that other pledge - a pledge to carry out a scientific investigation of the whole farm tax situation. If you are in business, your taxes fluctuate very largely on the success or the failure of your business; in poor years you pay less taxes., and in good years you pay more taxes; but the poor fellow out on the land -well., he never pays less, and in almost every case that I have ever known in the State of New York he pays just a little bit more, year in and year out, whether he makes more or less. Yes, I go one step further than my platform, for I am convinced that there are many other factors which a careful study will show have a direct bearing on the continued abandonment of farms and the decrease of our rural population. I propose, therefore., that the study of the problem of distribution and the study of the farm tax situation shall be broadened to cover these other factors so that we may have broad recommendations covering the entire economic farm situation. It is obvious that the future of the State depends on the proper use of every acre within the borders of the State. It may be that adequate investigation will show that many of the farms abandoned within the period of depression since 1 920 should not be restored to agriculture, but should be especially used for the 28

Page  29 Campaign Address, Jamestown, N. Y. growing of a future timber supply for the people of this State. At the same time we do not want the present alarming rate of farm abandonment to continue; and we must, therefore, make special efforts to make it possible for those who are now engaged in agriculture on suitable agricultural land, to continue to farm under more profitable conditions. I want this whole situation, this whole problem, studied by the representatives of some of those great bodies who know something about it, not just by Senators and Assemblymen. I want it studied by representatives of the State College of Agriculture, of the State Grange, the Farm Bureau, the Home Bureau, the Dairymen's League., and other farm cooperatives. I want it studied without regard to partisan politics, and it is my hope and belief that the recommendations resulting from this study will be acted on by the legislative branch of our Government without the interference of partisan politics. And I am very certain., too, that the people of our great cities will understand the vital need of this program, for it is obvious that their own prosperity is in large part dependent on the rural population as well..00 My own fight in this campaign, and the Democratic 'Party's fight, is not with the Republican rank and file. Our fight is with the leadership of that Republican Party, a leadership which has been so barren of imagination, so stupid year in and year out that it has contributed year in and year out to Democratic success. I do not want, if I am elected, to have a row with the Republican Legislature. I hope that they will in most instances go along as well with my program as they have been forced to do with Governor Smith's program. And I can tell you quite frankly that I shall have a program. You have heard part of it tonight. In the course of the next ten days the people of this State are going to hear some more programs from me. I believe in programs, because I believe in moving ahead. I am not one of those who are very keen about those periods of standing still that a Nation or a State sometimes has to have. It is just possible that after the War in 1920 it may have been in some respects a good thing for the United States to have

Page  30 Campaign Address, Buffalo, N. Y. had a period of - what shall we call it., politely? - beauty sleep under President Harding and President Coolidge. (Laughter) It may have been a good thing for us to quiet our nerves after the struggle of the Great War. Some of the farmers of this country do not think that that beauty sleep did them much good, and some of us are beginning to realize that we have fallen pretty far behind during that beauty sleep. But be that as it may, the time has come for us to wake up; and I believe that it is better for us when we wake up, instead of stretching and yawning comfortably and putting our head back to doze upon the Hoover pillow, that it is better for us to get up and take a cold Al Smith shower and feel fit for another four years. (Laughter)... 4 (I Campaign Address (Excerpts), Buffalo, N. Y. October 20, 1928 (A lUred E. Smith - Labor legislation - Republican opposition to labor legislation - Religious bigotry in national campaigzn.) IAM VERY grateful to the City of Buffalo for this very splendid meeting. This great gathering tonight has come here not merely to pay tribute to the Democracy of the State of New York; it understands that we have with us, perhaps not in body but at least in spirit, the great leader of the Democracy of the Nation, our next President,, Alfred E. Smith. I had planned to talk about a lot of things, national issues and various others tonight, but when I read that in Buffalo my old and good friend Mr. Ottinger had had the nerve to talk about what the Republican Party has done for labor, I decided that that was my chance. And so tonight I am going to tell you all about it, tell you the facts, go back in my own mind and in your mind into the history of this State. Somewhere in a pigeon-hole in a desk of the Republican leaders of New York State is a large envelope, soiled, worn, bearing a date that goes back twenty-five or thirty years. Printed in large letters on this old envelope are the words, "Promises to 30%1 -

Page  31 Campaign Address, Buffalo, N. Y. labor." Inside the envelope are a series of sheets dated two years apart and representing the best thought of the best minds of the Republican leaders over a succession of years. Each sheet of promises is practically the duplicate of every other sheet in the envelope. But nowhere in that envelope is a single page bearing the title "Promises kept." I ought to know something about it, from personal experience, because I had the good fortune to be a member of the State S enate in that famous year of 19 1 1, when the Democratic Party, aided by an almost solid delegation in the Senate and Assembly from the City of Buffalo, came into control of the State Government for the first time in a generation and started on its way a programnot of promises, but of accomplishments. Now, the set-up in 19 11 was exactly the same as it is in 19 28. The Democratic Administration, the Democratic leaders in the Legislature began at that time a series of practical measures in the interest of the men and women of this State who work with their hands. That session of the Legislature was the godfather of the Workmen's Compensation Law, of the first law limiting the hours for women in industry, of the factory investigating committee, and of a series of important measures strengthening the provisions of existing labor laws and building up the effective strength of the Labor Department. It is worth while to go as far back as 19 11, because we get at that time a definite picture of the attitude of the leaders of the two parties, an attitude that has continued down to the present day. I remember well that the attitude of the Democratic Party at that time was severely criticized by the reactionary element in this State. We were called socialistic and radical, and if the term "Bolshevist" or "Red" had then been in existence, it would undoubtedly have been applied to Assemblyman Alfred E. Smith and Senator Robert F. Wagner, and many others, including myself, because of our ardent support of the whole program. Arrayed against us on the other side was the silent, powerful pressure of the old school of thought, which held the theory that when an employer hired a working man or a working woman,

Page  32 Campaign Address, Buffalo, N. Y. he became the master of the fate of his employee; that when a worker entered the factory door it was nobody's business as to how he worked, how long he worked, or how much he was paid. It is very difficult, seventeen years later, for this generation to understand the attitude of the old conservative element toward employment, back in 19 11. But it is a fact that this attitude was subscribed to, sometimes silently, sometimes openly, but always definitely, by the Republican leaders of this State at that time. During the years 19 11 to 1915, the splendid record of definite accomplishment made by the Democratic Party of this State was fought and blocked and criticized at every turn by the Republican legislative leaders, and I am simply telling you bald facts. The best example of the difference in attitude between the two parties is 'the fact that during the four years of Governor Whitman constructive labor legislation in the State of New York came to an end. The progress was not resumed until Governor Smith went back to Albany as the Chief Executive in 1919 N ow, in the present year of 19 28 it would have been perfectly possible, away back last spring, to forecast with absolute certainty the exa 'ct words which the Republican leaders and the Republican candidates would say during this autumn campaign. First of all, they trot out the old worn envelope, dust it off, and copy into their platform the same old words that have been used every two years for a generation back. Let me read you the labor plank of the Republican platform. It is grand. "The Republican Part~y in this State has done more for labor than any other party. The Labor Law and the Workmen's Compensation Law are conceded by labor to be the best in all the States. Almost every line has been written in these laws by or with the approval of our party."39 Now, how dare they say that? How do grown up and ostensibly sane political leaders perjure themselves that way, for a statement of that kind is so openly and flagrantly dishonorable that it comes pretty close to the borderline of perjury? These same leaders know perfectly well that the Republican Party has constantly fought against almost every progressive measure in the interest of

Page  33 Campaign Address, Buffalo, N. Y. labor, that the State of New York has added to its statute books during the past seventeen years. Is it not dishonorable to talk about the writing of laws by or with the approval of the Republican leaders, when every man or woman who reads the newspapers knows that our present laws were either written by a Democratic Legislature or were forced through a Republican Legislature because the Democratic Governor of this State has been able on occasion after occasion to appeal so strongly to public opinion that it became too dangerous for those Republican leaders to block the wheels of progress any longer? The best proof is to go and get the opinion of any man or woman in this State who has been working in the interest of social betterment and the improvement of conditions of employment during all these years. You will find a definite substantiation of everything I am stating in regard to the relative attitude of the Republican and the Democratic leaders. Let us take a practical example of the principle of limiting the hours of work for women and children in industry. Back in that session in 1911 the Democratic leaders brought forward what was then regarded as a radical, socialistic proposal to limit the hours of women and children to fifty-four hours a week, and that is only seventeen years ago. The record shows that opposition came from the Republican leaders, many of them the same individual men we have today. But after a long fight that proposal became law. When Alfred E. Smith went back to Albany as Governor in 1919, progressive thought had advanced to the point of demanding a further limitation for women and children to a maximum of forty-eight hours a week. During six years that demand for action increased and at last, although the Democratic platform had been for it year after year, at last in 1924, four years ago, the Republican State platform for the first time came out definitely in favor of the forty-eight-hour week. It is almost needless to say that the Democratic platform had it in that year again as it had before. It seemed, therefore, that the fight had been won. Both parties were for it. It seemed that the workers were definitely assured by both parties of the passage of the proposed law; definite assurance 33

Page  34 Campaign Address, Buffalo, N. Y. was given to the voters of this State by Theodore Roosevelt, Jr., who, as I remember it, was a candidate for Governor, and by the Republican leaders, that they would carry out that pledge. Well, what happened? The Republican Legislature, wholly in their control, in the spring of 1925 failed utterly to carry out this plan in spite of the demand for it by every Democratic member, and by the Governor of the State. As a deliberate subterfuge the Republican Legislature passed the so-called Joyner Bill, which was unanimously denounced by labor and was criticized by Governor Smith as a fraud upon the people of the State--another promise gone bad. Well, that brings us nearer home. In order to create further delay the Republican leaders in the spring of 1926 appointed a so-called Industrial Survey Commission and hoped that they would by that action take the minds of the voters off the broken promises of 1924, and in the 1926 platform they merely referred in glowing terms to what this Commission was going to do. The Democrats, on the other hand, again stood squarely by the pledge for the forty-eight-hour week. In 1927 this Republican Commission made a report recommending a half-way measure, and the Legislature enacted not a forty-eight-hour law but a forty-nine-and-one-half-hour law. Because that was obviously the best that he could get from a reactionary and hostile Legislature, the Governor signed this law with the simple statement to the people of this State that it did not carry out the pledges hitherto made by the Republican Party. He signed it on the theory that sometimes it is better to have half a loaf than none at all. That brings us down to date. What is the situation this year? That same old Republican Commission, the smoke-screen commission, is still in existence, and the Republican platform this year pledges - I shall read the wording - "We pledge our party to give full consideration to the recommendations of this commission." What do we Democrats say? Compare the two. Compare the thought behind the two. We say, "We pledge ourselves to com34

Page  35 Campaign Address, Buffalo, N. Y. plete Governor Smith's labor and welfare program, including an eight-hour day and forty-eight-hour week for women and children in industry." That pledge is definite, and the record of the Democratic Party is also definite. We are in the habit, as is shown by the record, of carrying out our pledges. The Republican leaders of this State have not yet formed that habit. That is a pretty good illustration, and I have gone into it a good deal in detail; an illustration of the history of all legislation affecting the working men and the working women that has been going on for the past twenty years. I want to go on with the consideration of what the two parties are offering to the electorate this year. Other than the quotations which I have made from the platform of the Republican Party, that party offers nothing further for social and labor legislation. The Democratic Party in its platform goes on as follows, and it is worth-while for me to give the principle points, because there are very few people, probably not more than one man or woman in a thousand, who ever bothers to read through the whole length of any party platform. I myself had to do it this year because I am a candidate. The Democratic Party goes on very simply and pledges, first, a law prohibiting the granting of temporary injunctions without notice of hearing, and trial'before a jury for any alleged violation of injunctions. Second, we pledge a consideration of the subject of old-age pensions, and I might add right here that this is a subject that may be regarded today as radical, as socialistic, or as my conservative friends would say, "Red," just exactly as workmen's compensation and factory inspection were regarded as radical twenty years ago. But I believe that the time is definitely at hand for the State of New York to give definite study to the great humanitarian question of preventing destitution among the thousands of our citizens who become too old to maintain for themselves the adequate standards of life to which as Americans they are entitled. 35

Page  36 Campaign Address, Buffalo, N. Y. We pledge further the establishment of an advisory minimum wage board on behalf of women and children. Fourth, we pledge the extension of the Workmen's Compensation Act to give the greatest protection to injured workers and the dependents of workers killed in industry and to extend the law to cover all occupational diseases. We pledge, fifth, the further liberalization of the laws relating to the welfare of mothers and children. And, finally, we pledge a declaration by law that the labor of human beings is not a commodity. I received tonight the last bulletin of the New York State Federation of Labor. I want to read two short sentences. The State Federation of Labor says: "An analysis of the Democratic and Republican State platforms as they relate to labor shows positively that the Democratic platform is by far the most favorable to the wage earner. The Democratic platform plainly pledges to support legislation to require hearings in court before an injunction -can be issued against wage earners; to provide for jury trial of persons accused of violating such injunctions, the paramount legislative reform asked for by organized labor. The Republican platform ignores organized labor's request." And then, in a very naive or a very sarcastic way, it continues and says: "The Republican platform is very indefinite on improvements in the labor laws and ignores all of organized labor's proposals stated above, which were presented to the Republican Convention by the committees representing organized labor of the State of New York." I ask tonight the simple question of the people of this State: Are they in favor of continuation of progress in our laws relating to labor and social welfare; and, further, I ask whether on the record they think that this end can be best obtained by reliance on a Republican Governor and a Republican Legislature, or by reliance on a Democratic Governor and a Democratic Legislature?... Now, one final word, the last time that I expect to speak it

Page  37 Campaign Address, Buffalo, N. Y. in thi's campaign. Some misguided people in every section of the land have been violating by written and spoken word the Sixth Amendment to the Constitution of the United States, that great charter which forbids any religious test for the holding of public office. I hope and believe that as Election Day approaches this question will be left out of the decision of the electorate; just as I have talked up and down the land that no vote be given to Mr. Hoover because his opponent happens to be a member of another church of God, so I plead that no vote be given to me because my opponent is a member of a different church of God. I go back in my memory ten years ago - ten years ago this autumn. I go back to the days when I saw Chateau Thierry; I go back to the days when I was following up the advance of the American Army; I go back to a day in particular when several miles behind the actual line of contact between the two armies I passed through wheat fields, wheat fields with the ripened grain uncut; wheat fields in which there were patches, little patches of color,, something in the wheat, and some of those patches wore a dark gray uniform and others of those patches wore an olive drab uniform. As we went through these fields there were American boys carrying stretchers, and on those stretchers were German boys and Austrian boys and American boys being carried to the rear, and somehow in those days people were not asking to what church those German boys or those American boys belonged. Somehow we got into our heads over there and we got into our heads back here that never again would there be any question of a man's religion in the United States of America. And I want to say to you very simply, very solemnly, that if there is any man or woman whose mind can go back ten years; if there is any man or woman who has seen the sights that I have seen, who knows what this country went through; any man or woman who knows what Germany, Poland, France, Austria., England went through - even more than we did - in those years; if any man or woman, after thinking of that, can bear in his heart any motive in this year which will lead him to cast his ballot in 937

Page  38 Campaign Address, Rochester, N. Y. the interest of intolerance and of a violation of the spirit of the Constitution of the United States, then I say solemnly to that man or woman, "May God have mercy on your miserable soul."9 5 (Campaign Address (Excerpts), Rochester, N. Y. October 22, 1928 (Alfred E. Smith -Human functions of Government - Education - Child Welfare - Crippled children - A id to widowed mothers - O ldage assistance - Smith, Wagner and I as "socialists" and "radicals.") My friends: I HAVE been trying to concentrate, so far as possible in these great night meetings, on one topic at a time,, especially because nowadays one talks not just to the audience in front of him, but also to thousands of people scattered all over the State who are listening in by radio. Tonight I want to talk facts about what I call the human function of our State Government. Today, after a long period of education, every citizen recognizes that it is the duty of the State to concern itself with the health, welfare and general education of the people of the State. We have made tremendous strides in these past ten years. Before that,, the State was content to stop with the assistance of a very second-rate kind of education and did practically nothing in the other fields of welfare. First, in the matter of our schools, I want to point out one very simple proof of what has happened since Governor Smith came into office as Chief Executive on the first of January, 1919, because while I am not a statistician, like Mr. Hoover, the use of figures once in a while is very convincing. During the first year of Governor Smith's Administration, the State of New York spent twelve million dollars for education; during the current year of 1928, ten years later, the State of New York has spent eighty-six million dollars in the same cause. During no period in the State's history have such enormous strides I.8

Page  39 Cam paign Address, Rochester, N. Y. been made, and I leave it to the judgment of anybody, of all the voters of this State, as to who is responsible. Was it the gentlemen who called themselves the leaders of the Republican Party? And I want to say right here, at the outset, that my fight, our fight this year, is not against the rank and file of the Republican Party, but against the leaders of that party. Were those leaders responsible for this progress in education, or was it the insistence of Governor Alfred E. Smith? As the Governor himself has said, let anyone who cares to know write to, Dr. Graves, head of the Education Department., and ask him who is most responsible for the splendid progress. Incidentally, Dr. Graves is a Republican., and he is a truthful man. The only time the Republican leaders took any initiative at all was when they thought they could embarrass the Governor a few years ago by passing a bill to increase teachers' salaries, when they knew there was no money. in the treasury with which to pay the increase; and., incidentally, they absolutely declined to furnish the money by an appropriation. While it is true that these magnificent steps for improved education have already been taken, we cannot now stand still, because in many communities of this State school facilities remain still wholly inadequate and out of date. A continuation of State aid is imperative. In many places the minimum requirements are still too low; and it is obviously the duty of the State to see to it that this minimum standard is made higher. So, too, I am convinced that the minimum standards for the teachers of the State must also be raised. We are approaching a new era in which teaching standards will be subjected to increasing scrutiny.... Now, here is a kindred subject that goes hand in hand with education. I conceive it to be of just as much importance to educate the body of the child as it is to educate the mind of the child. During the past ten years, again under the leadership of Governor Smith., the general health of the citizens of this State in the first place., and of the children in particular, has taken tremendous s trides. The death rate has shown a constant decline.

Page  40 Campaign Address, Rochester, N. Y. Ten years ago the death rate of the babies was ninety in every thousand, whereas today it is sixty in every thousand. Again, in this field, we have only just begun the task, for much remains to be done. I may be pardoned if I refer to my own intense interest in the care of crippled children, and, indeed, of cripples of every kind. Infantile paralysis, tuberculosis, occupational an 'd other accidents, and various other causes give an estimate of over one hundred thousand adults and children in this State who are seriously crippled, most of them so seriously that they are unable to live normal or useful lives. First of all, then, from the practical dollars-and-cents point of view, it is obvious that if a large proportion of these cripples can by proper treatment be restored to active and useful citizenship, the money spent on them by the State will come back many times through their increased productiveness., We must not forget that a wheel-chair cripple is not only a dead load on the earning power of the community, but in most cases requires also the attention and care of some able-bodied person as well. Modern medical science has advanced to such a point that in the great majority of cases these cripples can be made to function. It is often a long and costly procedure,. but it is worth-while for the various communities and for the State to spend this time and money, for it will be repaid a thousandfold. Then, too, there is the great humanitarian side of the subject. I have seen thousands of examples of crippled adults and children, who by proper care have been restored to normal life among their families and friends. It is, of course, a fact that the family of the average crippled child in this State cannot afford to pay the heavy cost of obtaining proper private treatment, and we must come to a better realization that this care is as much a part of the duties of the local and State Governments as it is for those Governments to provide the funds for the development of the child's education.... The work so well begun needs to be greatly expanded. There are., for instance, between twenty thousand and thirty thousand 40n

Page  41 T Campaign'Address, Rochester, N. Y. crippled children in this State, it is estimated, who have not yet been located. There are thousands of others in this State who are not receiving adequate treatment. We need more money. We need an expansion of medical service to every out-of-the-way corner in the cities and on the farms. Money and momentum are the remaining needs. I propose to ask for the money and to accelerate the momentum. I suppose that people readily will recognize that I myself furnish a perfectly good example of what can be done by the right kind of care. I dislike to use this personal example, but it happens to fit. Seven years ago in the epidemic in New York, I came down with infantile paralysis, a perfectly normal attack, and I was completely, for the moment, put out of any useful activities. By personal good fortune I was able to get the very best kind of care, and the result of having the right kind of care is that today I am on my feet. And while I shall not vouch for the mental side of it, I am quite certain that from the physical point of view I am quite capable of going to Albany and staying there two years. Unfortunately, the great majority of the people in this State, whether children or grown up, who have become incapacitated, are unable to afford the cost and the time necessary to rehabilitation. It seems to me that it is the clear duty of the State and the local governments to make up what is needed to bring about the splendid definite results that medical science can now provide. And I promise to do all in my power to make available for others that which I myself have been fortunate enough to obtain. Then there is another side of that same broad picture. For the additional care of the little children who have been thrown on the mercy of the community by the death, the insanity, the desertion or the incapacity of their fathers, this State has now adopted the definite policy where we are no longer satisfied with the old-fashioned idea of sticking them away in the dismal recesses of an institution, there to be catalogued, classified, and merely allowed to grow up. We believe that their place is right41

Page  42 Campaign Address, R.och ter, N. Y. fully with their mothers. We believe that the money spent on institutions for those unfortunate children to go to, should instead be given to their mothers, to help bring them up at home. Money used to give these children a mother's love and a mother's rearing can never be wasted. Now, this system of mothers' pensions has been urged by the Democratic Party for many years, and it has gradually been broadened, extended and amplified by the Democratic Administration of Governor Smith. What has been the attitude of the Republican leaders? Let us look at the record. These allowances to widows for the support of their children are made by so-called county boards of child welfare. The money comes from the county treasuries, but some of our counties have been unable to raise enough money for this purpose. Their finances in many cases could not stand the strain. Governor Smith has come forward and said: "Let the great State of New York step in and help." He has urged the Legislature time and again to appropriate money to help the counties in this humane work. Bills were introduced by Democratic Legislatures to contribute State money to these local boards, with which they could function. Those messages and those bills were ignored by the Republican leaders. They turned a deaf ear to these pleas for better childhood, for better motherhood in our State. Why? Simply because it cost money; and the other reason was that they had not thought of it first. When we Democrats were in control of the Senate a few years ago, the Senate passed these bills: Senate Introductory Bill No. 284 of 1923; Senate Introductory Bill No. 84 of 1924. Introduced by Democrats, they were passed by Democrats. But what happened to them? When they got on the other side of the capitol to the Assembly, there was a different story. The Republican leaders were in control there. The bills were strangled to death in committee, and were not even allowed to come out for a vote. That is the record; those are the facts. On that record and on those facts, are you going to trust those Republican leaders to carry on our program of child welfare in this State?.. 42

Page  43 MR Campaign Address, Rochester, N. Y. One of the unsatisfactory conditions still existing in this State is the administration of the Poor Law. I do not know how much you people come in contact with that law, how much you have ever bothered your heads to look into the administration of the Poor Law in the various counties of this State. In some counties they handle it pretty well. But I think one of the most oppressing things that I have to do on occasion in this State is to visit the County Poorhouse. Somehow it just tears my heart to see those old men and women there, more than almost anything that I know. We need a drastic revision of the poor laws, and I propose to recommend it. But beyond a mere revision of that law is the difficult problem of why it is that we have to have so many aged poor who need to be taken care of. I have already said that in accordance with the Democratic platform I propose an immediate study of the broad subject of old-age pensions. If this State can, as I believe it will, pass a proper and adequate old-age pension law, we shall not have to revise the Poor Law of this State. We shall then be in a position, by a simple two-line act., to repeal it forever and ever. The taking up of this subject of old-age pensions at this time is no more radical or socialistic than the initiation of the Workmen's Compensation and the Factory Inspection Laws of seventeen years ago; and I remember well, when I was in the Legislature in that year of 19 1i, following that fine convention in this very hall, that we people who advocated Workmen's Compensation and Factory Inspection and social legislation of that kind., W~re regarded by a great many of the respectable and substantial citizens of this State as radicals and socialists. As I remember, the two Senators from Rochester at that time viewed me as a "Red." If the word "Bolshevist" had been invented then, it would have been applied to people like Assemblyman Alfred E. Smith, Senator Robert F. Wagner and me. Yes, and I suppose that those of us., who, this coming winter, ask for an immediate study of the question of old-age pensions will be written down as Bolshevists. Now, I am opposed to any form of dole. I do not believe that the State has any right merely to hand out money. But I am cer43C

Page  44 Campaign Address, Syracuse, N. Y. tamn that a practical method can be worked out in the State of New York on the principle of mutual contributions..&0 As I was coming over this afternoon from Batavia, I thought of a little verse that was taught me when I was pretty small, and I thought it was a good motto for me in this campaign, a motto that applies to what we are trying to do in this State; a motto that will apply with equal force to what our Governor is going to do in Washington after the fourth of March, next, and it is this: "Look outward and not in; look forward and not back; look upward and not down, and lend a hand."' 6 (ICampaign Address (Excerpts), Syracuse, N. Y. October 23, 1928 (A ifred E. Smith -Public development of the State'Ys wa ter-power resources.) Mr. Chairman, my friends of Syracuse: 0.0 " TONIGHT I am going to talk about a very wet subject, the wet subject of water power. While it may not be quite as soul-stirring a subject as the other wet one (prohibition), in some ways it goes just as deep to the roots of our democracy. This is a history and a sermon on the subject of water power, and I preach from the Old Testament. The text is "Thou shalt not steal."1 It is the history of the development of public thought in this State over a period of twenty years, a gradual forming of public opinion made necessary by the greatest of American discoveries, electricity, and by the growth among a small group of individuals of the very human desire to add to their worldly possessions by getting something for nothing. The story goes back twenty-one years. In 1907 the use of electricity for power purposes or for general illuminating purposes was still in its infancy, and the general public had not yet come to realize the vast expansion which has taken place since then. 44A

Page  45 w A Campaign Address, Syracuse, N. Y. On the other hand, the far-seeing experts and specialists in the electrical field had already begun to lay out a program, a program for the acquisition of water-power sites, realizing that the development of the turbine would soon make the production of electric power by the use of water far cheaper than by the use of coal. It was back in 1907 that the passage by the Legislature of the State of New York of a free, gratis charter created mighty little interest. Very few people knew about it. Yet that Legislature gave away on a silver platter a charter in perpetuity, giving the right to develop the power of the Long Saulte Rapids up on the St. Lawrence River. Most of us knew nothing about it at all, and it was not until some time afterwards that the people came to realize what the Legislature had done. Probably the great majority of the members of that Legislature had considered it merely one of the usual charters for private companies, and nobody charges bad faith on the part of that Legislature. Several years later, however, the Democratic Party came into power for the first time in both the Senate and the Assembly. By that time, in 19 12 and 1913, public opinion had begun to crystallize in this State, and in the face of intense lobbying and bitter opposition, the law was passed repealing the free hand-out of the charter to the Long Saulte Development Company. I shall always be proud of the fact that I was a member of the State Senate at that time, for I believe firmly that our action saved to the people of the State of New York its most valuable water-power asset. Well, what happened? The power interests remained pretty quiet for a while. Nothing happened until Governor Smith became Chief Executive of the State in 1919. He immediately urged the development of the water-power resources of the State, and during two years was, as usual, as in everything else that he recommended, blocked by the Legislature of the State. Evidently the water-power interests feared the possible future return of a Democratic Governor, because two years later, during the term of Governor Nathan L. Miller, whom some of you 45

Page  46 Campaign Address, Syracuse, N. Y. know, I understand, an act was passed creating a body called the Water Power Commission, that consisted of the Speaker of the Assembly, the Majority Leader of the Senate, the Conservation Commissioner, the State Engineer, and the Attorney General. The Legislature gave to this Commission the broadest sort- of power to g~rant licenses to private persons or corporations authorizing the diversion and use for power or other purposes of any of the water resources of the State. I suppose people who were chiefly interested thought they had all the time in the world to go ahead with their well-laid plans. But they reckoned, as they had often reckoned before, without Alfred E. Smith. Because, as we know, he came back into office on January 1, 1923, and fortunately also he has remained as our Chief Executive from that day to this. It is only because of this fact, my friends, that we, you and I, the owners of our water power, have not lost that water power by theft. Governor Smith sought in vain to obtain a repeal of the Water Power Commission Law. The Legislative leaders blocked it, and it is interesting to note the definite appearance at this time of the Speaker of the Assembly, Mr. Machold, the open and avowed champion of the private corporations which were seeking to obtain the water-power sites from the control of the State. With the help of Mr. Machold the water-power interests made the next move and offered an amendment to the Constitution of the State, allowing the use of the waters in the forest reserves. See how clever it was! The amendment did not have to go to the Governor for signature; it went straight to the voters, and they were clever too, because they carefully camouflaged that amendment to make the voters think that it would allow the use of these waters up in the Adirondacks only for municipal canal or stream-flow purposes. But it contained a little joker, just as so many of my friend Machold's little schemes did., a little joker allowing the development of power by lessees under leases not to exceed fifty years. That., of course, would have enabled the construction of water-power plants throughout the Adirondack Park.

Page  47 Campaign Address, Syracuse, N. Y. Governor Smith is not the kind, perhaps, that jokers get by. He dug it out, took prompt issue, labeled the amendment "tthe Adirondack raid"9 and made a personal campaign against its adoption. He made the issue so clear to the people of the State that it is worth while remembering that they sustained his position by defeating the amendment by a vote of 965,000 to 470,9000, a little over two to one. The next step in the history of the attempted theft was the announcement by Governor Smith of the adoption of a definite policy on water power, January, 1924. He brought out two points clearly. First, the people of the State are opposed to the principle of leasing the power sites which they own. Second, that leases for long-term periods, such as fifty years, are in effect perpetual grants..0* He proposed the development of the sites by a water-power authority, on a principle similar to that of the highly successful Port of New York Authority.... Well, needless to say, the Republican Senate and Assembly, under the guidance of my friend, Speaker Machold, failed to carry out the recommendations of the Governor, or to consider what were undoubtedly the wishes of the great majority of the voters of this State. Again they tried to delay action by suggesting further investigation of a subject perfectly clear to. everybody. That same situation continued in practically the same way through 1925 and the greater part of 1926. But in the fall of 19,26- and now we are getting down to modern times, very close to the days of the attempted robbery that I am coming to in a minute - the difference in policy between the leaders of the two parties was made clear in their platforms. The Republican platform said, "We favor the prompt development of the water-power resources of the State by private capital and management, under a system of limited leases." On the other hand, the Democratic platform said, "We pledge ourselves to the enactment of laws which will guarantee the perpetual ownership and control by the people of the State of the State-owned water-power resources.t. 47A

Page  48 Campaign Address, Syracuse, N. Y. Which would you rather have? Which is the standard that the people of this State have so clearly adopted? Now, it is a simple fact, which Mr. Ottinger cannot deny, that the gubernatorial campaign of i1926 was waged in large part on this issue. As all know, Governor Smith was reelected by an enormous majority, and it seemed clear that the people of the State had set the seal of their approval on his policy. As a result of the i1926 election, however, there came that episode in our State history which will be recorded in large letters for all time. Immediately after the votes had been counted in November, the power interests of this State realized that unless prompt action were taken, their chances would be gone, for the plan of reorganization of the State Government, which had been adopted by the people the previous year, was to go into effect the following first of January. Under that plan the old Water Power Commission was to die. The power interests had less than two months to get something done, seven weeks to go. Through the subservient Republican leaders they controlled four out of five members of the Water Power Commission: the Speaker of the Assembly, the Majority Leader of the Senate, the State Engineer, and Albert Ottinger, the Attorney General of the State of New York. In this situation the water-power interests became desperate. They induced the Water Power Commission to consent to grant them a lease on the St. Lawrence River which would have deprived the people of most of their water-power resources forever. The Governor, hearing of the plan of the Commission, promptly protested, calling the attention of the State to the fact that the Commission was about to go out of office, and that after January 1, 1927, the Governor himself was to be given the right to veto such licenses. But in spite of that this Commission had the consummate nerve to reply to the Governor that they intended to go through with the granting of the lease during the final months of their existence. Public opinion was thoroughly aroused in every section of the State. Litigation was threatened. The situation was critical. There, on the one side, was the overwhelming and definitely 48Q

Page  49 Campaign Address, Syracuse, N. Y. proven opposition of the great majority of the citizens, demanding that this steal should not be consummated at the eleventh hour. There, on the other side, stood the Water Power Commission, listening to the pleadings of the power magnates, asking them to act before it was too late. I see a picture of a table: four men, among them the Attorney General of the State, the lawyer elected by the people to defend the interests of the people, the lawyer of the State whom the Governor in this crisis was so unable to trust to work for the interests of the people of the State, that he felt obliged to retain the services of Samuel Untermyer to represent the people. There stood these four men, their pens poised in hand, ready to consummate the final steal. Telegrams poured in, protests from public meetings and editorials in the newspapers of all parties flooded Albany. And in that crisis came the decisive move, the open dare of the Governor of the State of New York, challenging the Water Power Commission to affix their names. For a few moments it looked as if the steal would be consummated. But in the nick of time the face of the Water Power Commission was saved. The power companies themselves lost their nerve. They did not dare to accept the challenge of the Governor and of the people of the State of New York. No; they decided that rather than arouse public opinion any further, they would wait until they could control, at some future date, not only the Attorney General, but also the Governor of the State. They were waiting until the election of the year 1928. Yes, the Water Power Commission put down their pens. Attorney General Ottinger and his colleagues had also lost their nerve. It was a drama that has had a happy ending in the first act; the curtain is about to ring up on the second act... In many ways this matter of power is the outstanding controversial issue before the people of the State in this election.... The record and position of Mr. Ottinger on the whole power question are too well known, too well fixed in history to do other than convince the people of this State that his election as Gov49

Page  50 Campaign Address, Syracuse, N. Y. ernor would mean the abandonment of the policy of Governor Smith., the policy that has received the support of the electorate. It means, further, the immediate handing over of our power resources to development by private corporations. It may sound very plausible to talk about a lease for a fiftyyear period. I state, and I make this statement on a fairly wide reading of history and a certain amount of common sense, that a fifty-year lease of water-power resources to a private corporation is, in effect, a grant in perpetuity. Let that sink in in this State. Does any human being suppose that when one of the great waterpower companies., if it should by any mischance get the legal right to develop the Long Saulte Rapids in the St. Lawrence River, puts in its dams, its power plants, and its transmission lines, at the end of fifty years it would walk out, comfortably and quietly, and turn it over to somebody else? That is not credible. That is asking us plain people to swallow something big. I do not want, any more than Mr. Ottinger or the power interests do, to put the State of New York into the business of distributing power to the ultimate buyer. That is a matter which can now be properly taken care of by private companies, especially because of the fact that it involves the employment of very large forces of men and women in the distribution of power to the ultimate consumer. But this function of the distribution end is a wholly separate function from that of the development of power at its sources. Personally, I am convinced that the people of this State have made up their minds that they want their power sites developed by a Power Authority, and not by private corporations. I shall advocate legislation to carry out that policy, and I will go just one step farther. If, by some misfortune, the Legislature after the first of January should still be under the control of Mr. Machold, Chairman of the Republican State Committee, and should still decline to carry out the policy that I have suggested, I will dare them to submit the question in simple form by referendum to the people of the State of New York. One election, just one day, two weeks from today by the way, 50r

Page  51 Campaign Address, Utica., N. Y. just one day in November stands between the rights of the people of the State on one side, and the loss of their priceless heritage on the other. The rights of the people are assailed in this election. Those who would steal our heritage are within one day of success. I have been placed by my party on duty as policeman to guard that heritage. I ask your support in that difficult and great task, and I ask you to join with me in saying, as our old sailors did back there in the days against the pirates of the Barbary Coast, "Millions for defense, and not one cent for tribute."I 7 (Campaign Address (Excerpts), Utica, N. Ye October 25, 1928 (Prohibition and State Enjorcement.) Senator Brown, my friends of Utica: 00.WHILE I am on the question of State's prisons, I want to make a point that the whole prison question presents a grave problem for today and possibly for the future, because of the undoubted increase in crime during the past few years. I am personally much interested in the crime question, by virtue of the fact that for several years I have been a member of the National Crime Commission, and I am familiar with the reports on this subject from every State in the Union. Any person who is familiar with this situation, not just here in New York., but in the West, the Far West, the South and in New England, must recognize two unfortunate facts that have arisen during these past few years. First, the age of criminals and of delinquents has shown a tremendous drop from previous years. Where ten years ago the average age of people convicted of crime was a little over 2 1, it is today nearer 18. Second, as shown by every record everywhere in the United States, the use of bootleg liquor bears an increasing responsibility for the commission of crime. Whether we live in the country 51I

Page  52 Campaign Address, Utica,, N. Y. or in the city, whether we live in this State or in another State, we know from personal observation of the effect of the present situation on the younger generation.... In every State in this country there are from two to five times more arrests of minors for drunkenness and disorderly conduct than before the misnamed Prohibition Law was put upon the Federal statute books. During the past four years I have spent much time in the State of Georgia, a State which had its own dry law years and years before the Volstead Law went into effect, and I can bear witness here in the State of New York, as I have borne witness publicly in the State of Georgia, that there is more consumption of distilled liquor per capita in Georgia, whether it be in the great cities like Atlanta, or in the rural sections of the State, than there is here in our State of New York. That I believe to be the fact, and I believe that the same fact applies to a great many other States that are today casting aspersions on our record in the State of New York. Now, it is a fact that any legislative change in the present Federal Law is, of course, a matter for the Federal Congress. Many States in the Union have State statutes similar to and based upon the Federal Volstead Law. I know from personal observation in many of these States that the enforcement of Prohibition is in those States actually less effective than it is in the State of New York, where we operate under the Volstead Law alone. It must, therefore, not be forgotten that it is still the duty of every peace officer in this State to make arrests for any violation in this State of the Volstead Law, just as much as any other Federal statute, and no one need question my position in favor of law enforcement. In view of the experience of other States, and in view of my conviction that an overwhelming respectable opinion in this State is opposed to the creation of a new set of machinery to add to the present confusion, graft and ineffectiveness of the Federal Law Enforcement system under the present Government in Washington, there is no practical advantage in enacting another 5;2

Page  53 Campaign Address, Troy, N. Y. Mullen-Gage law as a part of the statutes of the State of New York. That, my friends, is the way I feel about it. That is where I stand, and it is an interesting fact that I have not yet been able to learn what Mr. Ottinger's policy is, or indeed whether he has any policy at all. Certainly his party has no policy. Its platform does not even mention Prohibition. Aren't the people entitled to know before they vote? 8 Campaign Address (Excerpts), Troy, N. Y. October 2 6, 192 8 (Typical day of campaigning by the "sick" candidate.) Mr. Van Santvoord, my friends of Troy: WELL, I am glad to get back to the Hudson River. You know, I have been a little bit amused during the last three weeks. I understand that after the Rochester Convention took the action that it did, there was a good deal of what might be called sob stuff among the Republican editorial writers in the State of New York. They said, "Isn't it too bad that that unfortunate man has had to be drafted for the Governorship? Isn't it too bad that his health won't stand it?" We started off nearly two weeks ago from the City of N ew York, consisting of a caravan - a whole flock of people, candidates., the press, the stenographic force, etc. We started in in Orange County and we went on through Sullivan, Delaware, Broome, Steuben, and so forth, out through the Southern Tier, all the way to Jamestown. One day we covered 190o miles by automobile and made seven speeches. Then we worked our way up to Buffalo and back to Rochester and Syracuse; because we were getting into our stride, we took a little side trip up to Oswego and Watertown, and then we dropped back to Utica. We left Utica this morning, intending to have an easy day of it. We got to Herkimer, where we all made speeches; then we expected 53 -

Page  54 Campaign Address, Queens, N. Y. to come through to Schenectady, but when we got to Fonda, there were forty or fifty automobiles in line blocking the road, and we were literally kidnapped. It threw the whole schedule out. We were told that up in that neck of the woods, Gloversville, where in the past there had been occasionally two Democrats, and sometimes three, that had gone to the polls, there were two thousand people waiting for us on the street, and that all the talk of the owners of the glove factories there could not keep them off the streets. So we changed our plans a little and went up to Gloversville. There they were, all of them going to vote the Democratic ticket. When we came on down, we were kidnapped again. We got to Amsterdam. We expected to go through Amsterdam just as fast as the traffic cops would let us, but there were sixteen hundred people in the theatre in Amsterdam, waiting. They had been waiting there two hours. And then, for good measure, we just dropped into Schenectady and spoke there earlier in the evening, and now here we are in Troy. Too bad about this unfortunate sick man, isn't it?... 9 (1Campaign Address (Excerpts), Queens, New York City, N. Y. October 29, 1928 (State parks program - A lUred E. Smith called a "socialist" by President Hoover.) Mr. Chairman, and friends of Queens: 0""TONIGHT I want to talk to you about something that is particularly appropriate in Queens, because here you are the great artery, the great means of access to the farmers of Long Island. I had started - it was on the tip of my tongue - to say that Queens was the neck of the bottle to Long Island. But I was afraid that the Anti-Saloon League might object. We have heard much in the past about the drift of the rural population to the cities, and it is true. There are more and more abandoned farms up-State in New York than I have even seen in 5,4

Page  55 Campaign Address, Queens, N. Y. my lifetime. There are more and more farms being advertised for tax sales. The farmers cannot make both ends meet, and that is one reason why, as part of my program, a new program for this State, I propose that we should take up seriously this question of retaining our rural population. In that plan I know that I have the support of the people who live in New York City, because it is to their interest as well as that of the farmers that the farms of the State should be maintained. Many reformers and social workers have been worried about the possible effect on future generations that would come from the increased crowding in our cities. Locally, out here, you are not yet crowded, and I hope that the development of this great borough will not be along the lines of crowding. But you know there is an old military axiom that says that for every new weapon of offense that is invented, very quickly there comes along the invention of a weapon of defense, and I am convinced that that is the case with the trend of the past fifteen years of the rural populations coming into the cities. There has been at the same time the invention, you might say, of our modern civilization, that is taking city people out into the country districts. There are two modern factors that belong to this movement. One is the great growth of popular sports that we all know about, and the other is the advent of the automobile, which is making it possible for those of us who live in the cities to get out into the country, whole families at a time.... Of equal importance with the highway program has been the great program of park and parkway development initiated by Governor Smith in 1923. Up to that time, as you probably know, there had been a scattered, uncoordinated series of local efforts to create park facilities in various places throughout the State, all of this without any general policy. With his almost uncanny ability to sense the needs of the average citizenship at the inception of those needs, Governor Smith, as he has shown in dozens of other cases, was the first to call the attention of the people of the State to the need for a definite State policy on parks, for a systematic development of construction and acquisition. He re55

Page  56 Campaign Address, Queens, N. Y. alized then, as all the people have since, that the people who need those parks all throughout the State are not those that have the time and money to own great estates and enjoy outdoor life whenever the spirit moves them, but rather those millions of citizens, the great rank and file of us, and particularly the children, who have no home of their own in the country and who long for a chance to obtain appreciation at first hand of the value of outdoor life. Outside of the Adirondack and Catskill Preserves, practically all of the lands of this State were held in private ownership; and in almost every case, as you know, there were "No Trespass" signs out against the people who did not own the lands. In New York City, especially, the problem was becoming a critical one, because the increased value, and the constantly increasing value of the land within fairly easy distance of New York - the value not only of land but of the sea beaches - was making State control soon an impossibility. Action had to be taken quickly or not at all. It was in April, 1923, that the Governor recommended this definite State Parks Program. He asked the Legislature to authorize $15,000,000 of bonds. At the same time, he recommended the creation of the State Council of Parks to tie in all of these scattered regional parks that had no head and no tail. That bond issue was approved by the people of the State in the fall of 19,94, and in January, 1925, the Governor asked the Legislature to appropriate the money to permit the starting of work on the parks program. What happened?. When he asked them to appropriate the money, the Legislature saw a chance to give him political embarrassment. They had tried before to trip him up, and each time they were the ones that fell.. 0. Right about that time, not so long ago that most of you do not remember it, occurred the famous effort on the part of a number of gentlemen living on Long Island to stop the machinery before it got into working order. Those gentlemen made such a stir in 56

Page  57 Campaign Address, Queens, N. Y. and out of court, that the people in the Legislature were influenced by it and thought that here was the chance to put a spike in the Governor's guns. Now, to understand that battle it is necessary to call attention to the fact that Long Island, as you know,, forms the natural playground for six million men, women and children who live in New York City. The north and south shores of Long Island are readily accessible, and these shores have been held in private ownership practically all the way to Montauk Point. In order to obtain access to the whole of Long Island, the Long Island Park Commission mapped out two great Parkways, one on the North Shore, and one on the South; and the Commission planned the use of beaches and bays and the providing of recreational parks at suitable intervals. What happened? The fight by that small group of Long Island residents was sufficiently effective so that the Governor's program and his request for an appropriation failed, first at the regular session, and then at the special session of the Legislature called in the summer. This opposition was definitely in the face and against the wishes of the expressed opinion of the people as given at the polls. Of course you know, as I know, that it is characteristic of the Governor, when he gets opposition of this kind it just makes him fight the harder. The story of that long legal battle over the taking over of Deer Range Park at Central Islip is a matter fresh in our memories. Who was it headed by, that fight? It was headed by a gentleman named W. Kingsland Macy., now the Republican County Chairman of Suffolk County. He and his associates tried every known form of legal procedure to stop the State from getting Deer Range Park. Every form of social and political pressure was brought to bear on the Governor; and to bring the story down to date, it was not until the Court of Appeals of this State affirmed the appropriation of that land, that the fight seemed won. Even then Mr. Macy and his friends appealed to the Circuit Court of the United States,, and were there again turned down. The successful outcome of the struggle of 1925 and 1926 over 5et7

Page  58 Campaign A ddress, Queens, N. Y. the Taylor Estate, an old unoccupied, overgrown acreage at Central Islip, finally seemed to convince the Legislature of the definite will of the people that the parks program should be carried out, because in the 1926 session, and in 1 927 and 1928, the Legislature made large appropriations out of current revenue and out of permanent improvement bond money, for the purpose of park development and acquisition. The resulting situation is this: we have in this State eleven park regions, into which are divided all of the counties of the State. Each of these park commissions, or authorities in charge of these regions, is carrying out a well-considered, definitely coordinated plan of parks and parkway developments. All of us who live in the City of New York know about the splendid playground up at Palisades Interstate Park. We know the splendid park development system in Westchester. We must not forget, too, that the area of this State is large, and that facilities are also being provided at other strategic points. For instance, the Taconic Commission, of which I happened to have been the Chairman myself, so that I am speaking about it somewhat from personal knowledge, is developing the great triState park up the Harlem Valley, where Massachusetts, Connecticut and New York come together. That will be a splendid camping ground within fairly reasonable distance of the City of New York, only a few hours' run. It was opened last summer and already thousands of people from the City of New York are beginning to use that park.... (Here followed a description in some detail of the park regions and a statement of their development.) As a result of these activities the State now has - it is rather difficult to sense this, for you think in terms of lots in Queens - two million, two hundred and eighteen thousand acres of park lands devoted to the use of the people. That huge acreage is divided into seventy parks and reservations. The regions provide compact geographical units, and some idea of their value to the people of the State can be gleaned from the fact - this is just one 58Q

Page  59 Campaign Address, Queens, N. Y. example - that last year the Bear Mountain Park, from January 1st to November ist, was visited by 4,875,000 people. That is just one park in the State. As many as 35,000 automobiles have used the Bronx River Parkway in one day, and ten thousand bathers have used one little two-by-four park down at Valley Stream, Long Island, almost every Saturday and Sunday this past summer.... ILast Monday night, just a week ago, in New York, somebody got into a panic. Brother Hoover got up in Madison Square Garden, looking for an issue, to stop the swell of the tide for Smith, and he said, "He is a socialist." By that token Smith will be elected. He knows just what to do when he is called a socialist. He has a good answer, and it is a true answer. If his program for the public park system of the State is socialistic, then we are all socialists; and if his program for the reduction of hours of women and children is socialistic, we are all socialists. If his program for public improvements for the hospitals of the State and the prisons of the State is socialistic, we are all socialists. And if his programs for bettering public health in this State and for aid to the educational program of this State are socialistic, we are socialists. Yes, anybody in public life who goes ahead and advocates improvements is called a "radical." The Democratic Party in this State has gone on and advocated improvements; it has put them through; and it has been called "radical" and everything else. The Democratic Party in this State will keep on winning as long as it goes ahead with a program of progress.... 59

Page  60 Campaign Address, Newv York City 10 (Extemporaneous Campaign Address (Excerpts), New York City, N. Y. October 30, 19298 (Labor legislation - Collective bargaining during the navy days of F. D. R. - Fluctuations in employment.) Mr. Chairman, My friends:... * I REMEM BER particularly one of the first things I got into awful hot water about up in my country district - and mind you, I come from an unfortunate district up there on the Hudson River where organized labor had mighty hard sledding, and still has, in the city of Poughkeepsie. It is one of the spots that we can make some headway with, I hope, in the days to come. And one of the first measures that we started in 19 1 1 was the fifty-four-hour law for women and children in industry. In those days a fifty-four-hour law was considered the most radical thing that had ever been talked about. It shows the progress that our civilization is making. That was only fifteen years ago. And you have heard the history from then on down. It all goes to point out one perfectly definite fact in my mind, and that is that in this State the Democratic Party has had a kind of human vision that the other side has lacked. Those three years were very interesting years and I learned a lot. I think that it was those three years spent up there in Albany that made it possible for me to go down to Washington in 1913 with some understanding at least of the problems of the Federal end of things. I remember when I got down there. I had not been there more than about a week when a delegation from the Brooklyn Navy Yard came down and said, "Mr. Roosevelt" they had not started to call me Frank; they did in about another week - "tthere is one thing that we want you to do. You know, you, as Assistant Secretary of the Navy, have charge of all labor matters." I said, "That is fine; I did not know it." "Will you do something to change the present method of working out the wage scale paid 9Go

Page  61 Campaign Address, New York City in the Navy Yard?" I said, "Fine. How is it done?" "Well," they said, "do it yourself." I said, "Why, hasn't it been done by the Assistant Secretary in the past?". "No, it has been done by the officers." And then they went on to tell me how unjustly the wage scales in all of the Navy Yards on both coasts and on the Gulf of Mexico had been arranged each year by a special board of naval officers. After I had been there I think three days longer, I got Joe Daniels to sign an order making it the duty of the Assistant Secretary to fix the wage scale each year. I am very proud of one simple fact, and that is that during the seven and one-half years in Washington, we did not have one single major dispute, no strike, walk-out, or serious trouble in all of the Navy Yards all over the United States. We established, in other words,, a perfectly practical example of the practice of collective bargaining; and it worked, as it always will work, if both sides come to the table in the right spirit. They came in the right spirit and we were not only able to settle wage matters, but we were able to do something else that no Republican Administration - national Administration - in the past has ever thought of doing. As you know, during the previous years, before 1913, in every Navy Yard in the United States there were tremendous fluctuations in employment. The naval officers were thinking only about the needs of the military side of things. The entire Atlantic Fleet would be brought to the Navy Yards for overhauling. We would take on ten or fifteen thousand additional men during a period of a month or six weeks. Then the Fleet came out again, and ten or fifteen thousand men would be laid off. The result was great hardship. The Republicans also in previous years had taken the point of view that the Government did not need to manufacture anything in the Navy Yard, on the theory that with their fancy system of keeping accounts private materials could be bought a great deal more cheaply than they could be manufactured by the Government itself. Well,,we started investigating; and on the investigating com6i 1

Page  62 Campaign Address, Bronx, N. Y. mittee we put mechanics from the yards themselves, as people who knew the most about it. The results were: first, the establishment of a system of costs that proved that over a great many years of work in the Navy Yards the Government made material more cheaply than we could buy it; and, second, an arrangement so that the schedule in employment could be maintained on a fairly even basis throughout each year. That was maintained during seven and a half years, and the result was that employment in the Government service became a true opportunity for permanent service.... 11 i[ Campaign Address (Excerpts), Bronx, N. Y. October 30, 1928 (Administration of justice - Prison reform - Modernization of criminal law procedure.) Mr. Chairman, my friends of the Bronx: TONIGHT I have chosen a somewhat serious subject, but a subject that comes home into the life of every man and woman in this audience. In my speech of acceptance I spoke of four examples of improving our Government methods with the succeeding years, and I have talked about three of them already. Tonight I want to talk about the last of these. It relates to a subject that goes deep to the roots of effective government, the system by which justice is administered. Now, justice comes pretty close home into our lives; although, as somebody said to me the other day, probably only one man or woman out of a thousand is engaged or involved in court procedure, either criminal or civil, in any way. Yet I am perfectly certain that nine hundred and ninety-nine individuals out of a thousand are interested in better justice in this State. We ought to be very proud of this State. We ought to have pride in the contribution that we have made in the past to the 62 r

Page  63 Campaign Address, Bronx, N. Y. system of jurisprudence. It was the New York Code of 1848 that was not only the first of the great codes of civil procedure, but became the model for other States, and it was our criminal code of 1881 that lighted the way for the rest of the Nation. In the organization of our judiciary, especially the high character of our Court of Appeals in Albany, New York has established a happy preeminence, and we have had great help from commissions and bar associations and business organizations in the improving of the administration of justice. But I think that you will agree with me, on thinking over this very vital matter, that these constructive efforts of recent years have not been able to keep pace with the fundamental changes in our social conditions. Population has increased in a manner that previous generations could not have foreseen. The very existence of Bronx County today is the finest living example of how a great community is born in these United States. Population has increased, and the rise of great cities has been out of proportion even to this great increase, and business has been done on broader lines. All of these increased complexities of our social relations have added to the difficulties of assuring fundamental justice to the individual man and woman, the human being, and this plea of mine is merely an expansion, another step in that great program for human rights which Alfred E. Smith has so long championed. We know conditions and we know responsible and thoughtful judges have reported that, in spite of efforts, the burden of litigation grows more rapidly than the facilities of the courts; that justice is often slow and expensive; that the jury system in certain types of cases is unsatisfactory; that perjury is all too common. Great strides have been taken in the penal phases of the criminal law in the past two years. But the unsatisfactory condition still prevails. In other words, the whole problem of crime must remain under scrutiny until it is put on a better basis. I believe that the time has come to use intelligent effort not merely to provide 63

Page  64 Campaign Address, Bronx, N. Y. adequate punishment in these days, but more modern, more American methods to eliminate the cause of crime. Now, what is our complaint, your complaint and mine, the average citizen? Is it not along these lines, that justice is too slow, that it is too expensive, that it allows and encourages too much litigation? I need not expand on the subject of the slowness of justice. You people know here how long, very often, it takes to get into court, and then to get through court. Our record in the matter., in comparison with other Nations, is not as good as it should be. Improvements due to the cooperation of bench and bar have helped our court calendars, and I approve of all of these measures, but in the final analysis there may result from them too much congestion in the lower courts, as we know in the City of New York.... Both of these premises, the slowness and the costliness of getting justice, bring up the need of studying, in addition, the possibility of reducing the volume of litigation. You know, we Americans just love to go to court. It is one of our favorite occupations. Some people would rather be in court than eat. They would rather find a new cause of action than eat their breakfast. And yet it is not a good thing for us. It is not a good thing for the communities. And I believe the time has come in the advance of our civilization when we can make one of the points in our education of the children, in our working out of the procedure of the law, that it should be a matter of pride for us Americans to avoid litigation where we can properly do so. -. We need a fact-finding commission to determine by scientific analysis of the thousands of cases what cases cause the delay and the expense; what kinds of cases take up the time of the courts; what courts areI most crowded; and, finally, what cases ought never to have come to court at all. I recognize that great study has been given to this problem by various committees, voluntary organizations., and by the courts themselves, but the point I would make is that the State needs a coordination of this mass of figures, and the recommendations of an official body representing the State itself. This State Coin64.

Page  65 Campaign Address, Bronx, N. Y. mission should, of course, have on its membership judges and lawyers, but in addition, and I say this as a member of the bar of this city, we should call on the intelligence of laymen and lay women who are not members of the legal profession, so that we can have a cross-section of public opinion representing all classes of endeavor. So much has already been done in the study of judicial procedure, of arbitration, of penology, that a State Commission appointed this coming winter should be able to make a comprehensive report within the year. When that is done, the State needs action. We have been flooded with recommendations for years, but there has been no central body capable of bringing in a report in such form that any action could be taken thereon.... My friends, experience with our Republican leader friends in the Legislature makes it perfectly evident that the people of this State can expect very little from that Legislature if they are left to work out the problem themselves. I will, if elected, take immediate steps to secure the cooperation of the bench, of the bar, and bar associations, and of commercial and industrial and labor organizations, and of such other public and semi-public agencies which have a broad interest in this problem. Here are a few suggestions that will only take me a minute to run over: First., the question of the reduction of the number of jury trials; Second, the elimination of perjury; Third, stricter examination into the ethics of certain members of the bar; Fourth, the elimination of ambulance chasing; Fifth., the elimination of dilatory motions; Sixth, the devising of new methods to handle many thousands of cases., particularly certain kinds of court cases, by administrative tribunals rather than by courts of law. In many ways that last suggestion goes, back to the ancient patriarchal system of the Bible, where., instead of going before a judge duly decked out., you go out and settle your troubles before 65

Page  66 Campaign Address, Bronx, N. Y. a friend, without formality, without the red tape of all of the present judicial procedure. On the criminal side of this question, here are some steps which we must study in these next few years: First, consideration of Governor Smith's sentencing plan, a great step in the right direction, and far in advance of anything we have done yet; Secondly, the complete overhauling of the prison labor system; Third, the classification of prisoners in State prisons; Fourth, reform of the system by which short term prisoners are kept in County jails; Fifth, establishment of statewide detective service to assist District Attorneys in the running down of crime and the preparation of important cases; Sixth, the establishment of a system of minor criminal courts to take over the criminal jurisdiction of justices of the Peace; Seventh, the extension of a State Criminal Identification and Statistic Service; Eighth, further revision of the Penal Code in order to bring the substantive criminal law in harmony with new conditions; Ninth, better provision for the education of local police officers. That does not apply in the City of New York. Tenth, revision of the firearms law. Eleventh, provisions for insanity proceedings in criminal cases to reduce the so-called expert testimony evil. And, Twelfth and last, a better parole law, with adequate parole service. We are hearing much today, with some justification, of many complaints about our legal system. We hear talk of one law for the rich and another law for the poor. Taking it by and large, I am very certain that the people of this State want a reform of their judicial procedure, and I am equally certain that the bench and the bar will cooperate with the other citizens of the State in helping to expedite this reform. Again, I want to repeat that what we need is action, and I propose to do all in my power to see that it is brought about... 66

Page  67 Campaign Address, Yonkers, N. Y. 12 (1ICampaign Address (Excerpts), Yonkers, N. Y. November 1, 1928 ("Is Hoover Human?" - Rugged individualism - Democracy vs. intellectual aristocracy in Government.) Mr. Chairman., and my old friends: YES., I want to say something about the theory of Government. You know, campaign speeches are very different nowadays from what they were when I was young. I go back far enough to remember the Fourth of July orator. There are few of them left, thank God. But I believe that people are interested in the philosophy of politics, in the theory of our Government. More and more the old-fashioned "'pull the eagle's tail to make him scream," or "gtwist the lion's tail to get a howl out of the mob," has gone by. That day is gone, and we have come down with our better education all over this country to a willingness to talk about the philosophy of politics, and about the theory of Government, provided it can be made at all interesting..*0 What leads me to think about this is the fact that this morning I happened to pick up the November number of one of the leading magazines and there on page one was an article with the following caption: "Is Hoover Human?" That title implies something. It implies the suggestion in the minds of a great many citizens that Mr. Hoover is not human. And I went on and I read it, and through seven long pages the author of that article labored, and labored heavily, to prove that the Republican candidate has the human qualities which the title of his own article puts in question. Well, I wonder if any man or woman in the United States, writers for magazines, editors, or just plain citizens like you and me, has ever, in their wildest moments, put this question., "Is Al Smith Human?" That is the best example that I know, of the difference between the two men. In the one case the question can607

Page  68 Campaign Address, Yonkers., N. Y. not be asked. It would be ridiculous on the face of it. In the other, it is a question,. not merely on the front page of that magazine, but in the minds of hundreds of thousands of men and women throughout the United States. I want to go on. In this article there was a quotation, a quotation from a book written by the late Secretary of Commerce, Honorable Herbert Hoover., and, mind you, it is very short. It is worth taking home with you and thinking about. Here is what Mr. Hoover writes, with his own pen, out of his own head, in his own book, a book called American Individualism, and he says: "Acts and deeds leading to progress are born of the individual mind, not out of the mind of the crowd. The crowd only feels, it has no mind of its own which can plan. The crowd is credulous, it destroys, it hates and it dreams, but it never builds. It is one of the most profound of exact psychological truths that man in the mass does not think, but only feels."% I know the gentleman well, and have for many years; and that, in my judgment, is the best insight that you can possibly find into the personality of Herbert Hoover., into his approach to every public and private question. It is characteristic of the man. That question gives the reason why the author of the article asked, "Is Hoover Human?" And it affirms the judgment of tens of thousands of Americans who during the past four months have been viewing him as a possible occupant of the Presidency. Now, Mr. Hoover's theory that the crowd, that is to say, 95 percent of all the voters who call themselves average citizens,, that the crowd is credulous, that it destroys, that it hates., that it dreams, but that it never builds, that it does not think, but only feels - that is in line with the training, the record and the methods of accomplishment of the Republican candidate for the Presidency. It is another way of saying, and I say this as an analyst and not as a candidate, that there exists at the top of our social system in this country a very limited group of highly able, highly educated people, through whom all progress in this land must originate. Furthermore., that this small group, after doing all the thinking 68

Page  69 Campaign Address, Yonkers, N. Y. and all the originating, is fully responsible for all progress in civilization and Government. What is on the other side? It seems to me that the whole life of the man whom we still refer to as "Our Al Smith" is a refutation of this innate theory of his opponent. Governor Smith has given undoubted proof of the definite fact that the mass of humanity does think, that it can make up its own mind on the pros and cons of all public questions; that it often originates, and that there is a very definite relationship between what Mr. Hoover calls the crowd and the continuation of modern progress. As a matter of fact, here in this State of ours we are well aware of those deeper impulses that have led in large part to the great humanitarian achievements and accomplishments in this State during these past few years. I want to cite some very simple examples of the origin of the progress. Take, for instance, the thing that you people in Westchester know all about, the magnificent park-development program..If you look back in your own minds ten or fifteen years, you will remember that there was back from at the time of the War, just before the War and during the War, a very definite urge that started at the bottom among the mass of average citizens, an urge that expressed a need, a, need of finding open spaces for those of us that have to live in the crowded confines of the cities of the State. There is no question that that first expression of this need came from the bottom., and as we remember, it produced some small results in various parts of the State through the undertaking of small parks by local communities, by the gifts of publicspirited citizens. But all of this was just the beginning. As the population grew, especially during these very years -and there came a definite impetus to this demand for somewhere to go into the country, somewhere to go that was not all plastered over with "No Trespass" signs'-- the spirit was communicated from the bottom up to the next step. Who? The elected officials representing the mass of the population. One by one, these elected officials began to respond to the urge 69 -

Page  70 Campaign Address, Yonkers, N. Y. from the electorate, and that, after all, is the whole basis of our system of representative government in the United States. Now, that urge from the bottom, it may have been a dream, as Mr. Hoover would call it; it may have come from people who do not think, as Mr. Hoover says. But the fact remains that it worked on up, first through the elected officials, until it became what we call a body of public opinion, and then it was communicated to a man at the top who knew public opinion when he saw it, a man who, by the grace of God, was the Governor of this State.... And so on that question of parks Governor Smith was the first man to recognize that growth, that swelling of public opinion from the bottom, and he put the definite demand down on paper and presented it to the voters of the State. Well, you know the history of the development of that great park program. You remember how it was blocked for several years by another form of that stupid leadership. You in Westchester particularly remember the famous special session of the Legislature in 1925, which was called with the understanding that the Senator from this district was going to approve of the park program, and that after he got to Albany he turned around and there was no approval. You remember, too, at the same time, the opposition in Long Island to the acquisition of the Southern Parkway along that great Southern Shore of the Island. If you make an analysis, you will find that it was the element in Long Island, consisting of less than 5 percent of the electorate, who thought they knew better as to what was good for Mr. Hoover's crowd than the other 95 percent of the inhabitants who made up that crowd. It worked, after a while, public opinion, coming up from the bottom and not from the top; with leadership at the top, yes, the finest leadership that we have ever had in this State; and finally that public opinion, helped along by the leadership of our Governor, has put the park program on a firm foundation... Take some other examples. Take other examples that refute wholly that Hoover theory of the God-inspired individual at the top who is supposed to do all the thinking and the building for 70

Page  71 Campaign Address, Yonkers., N. Y. everybody else. The whole subject of Prohibition is in point, because it has amply proved that a statute is incapable of good enforcement unless the. majority of the people themselves wish to abide by the statute and wish to aid in its enforcement. And yet, Mr. Hoover's attitude on that subject, and I suppose the attitude of those ideal individuals of his who would do all our thinking for us, is that the present conditions in the United States -all over the United States - constitute merely a "4noble experiment." Governor Smith, on the other hand, recognizes the diametrically opposite point of view; he recognizes that the great majority of the average voters do think, and by that process of thought are convinced of the outrageous conditions that have resulted from the Volstead Law and its present method of administration; furthermore, that a change in these conditions is demanded from. the bottom upward. Governor Smith and I are at one in recognizing this demand from what Mr. Hoover calls the crowd. We recognize it as the thought on the part of that crowd, the thought that demands constructive action. Constructive action means change from the present conditions, and we favor change. Take another example, water power. It is quite safe to say, I think, you know what the issue here is this year. You know that the Democratic Party is standing by exactly the same platform pledges, exactly the same general policy. The State of New York owns today two million undeveloped horsepower, and we believe that those two million horsepower sites ought to be developed by the people of the State of New York who own those sites. But when you come right down to it, taking that same Hoover theory of the crowd, and of the little tin gods on wheels up at the top who have got some kind of heavenly right to rule, it is quite safe to say that if that Hoover type of mind had been given full authority in this Nation during the past generation, not one single lake or river or stream or waterfall capable of developing electrical energy would today remain in the possession of the people of the United States, or of any individual State. There is such a thing as too much engineering.

Page  72 Campaign Address, Yonkers, N. Y. Take as another example the great humanitarian reforms that have been accomplished as a result of the efforts on the part of organized labor. Does Mr. Hoover imagine for a minute that the individual mind of those lucky few who are at the top of the ladder would have favored enactment of our laws limiting the hours of work of women and children in industry? Or our laws for factory inspection, or our law calling for one day of rest in seven, or any of that great program of welfare that has been put through under the guidance of Alfred E. Smith?... In the final analysis the great issue in both the national and State campaigns revolves around that fundamental belief of my friend Mr. Hoover in the incapacity of the mass of average citizens either to think or to build. In the national election the great Governor of the State of New York is the most splendid living example of the opposite fact. And in this State election, too, the same point is raised., for the Republican leadership of this State is based on that same belief that Mr. Hoover holds. I deny, and the Democratic Party denies, that the average man and woman in this State, who make up its electorate., are incapable of thought or of constructive ability. I know that the electorate does think, that it does originate., and that it does build, and it is on that fundamental belief that I base my campaign for the Governorship. It is the same belief which has brought to us the great program of the past few years; the same belief that must carry us forward during the coming years to an even greater progress.'. 0. 72

Page  73 II Governor Roosevelt's Two Inaugural Addresses and Four Annual Messages to the Legislature of New York THIS CHAPTER contains the two Inaugural Addresses and the four Annual Messages to the Legislature made by me during my four years as Governor. As will be seen, they each cover several subjects; and specific reference will be made to them in the chapters dealing with the respective subjects covered. The material in the annual messages which relates exclusively to particular State matters, and which has no relevancy to the Federal policies or objectives of my Administration as President, has been omitted. The full text of these messages can, however, be found in the Public Papers of Governor Franklin D. Roosevelt for the years in question.

Page  74

Page  75 13 4(The First Inaugural Address as Governor. January i, 1929 (A ifred E. Smith - A ims of progressive government - Water Power Administration of justice - Farm relief.) Governor and Mrs. Smith, Mr. Secretary of State, my friends: HIday is notable not so much for the inauguration of a new Governor as that it marks the close of the term of a Governor who has been our Chief Executive for eight years. I am certain that no Governor in the long history of the State has accomplished more than he in definite improvement of the structure of our State Government, in the wise, efficient and honorable administration of its affairs, and finally in his possession of that vibrant understanding heart attuned to the needs and hopes of the men, the women and the children who form the sovereignty known as "the People of the State of New York." To Alfred E. Smith., a public servant of true greatness, I extend on behalf of our citizens our affectionate greetings., our wishes for his good health and happiness and our prayer that God will watch over him and his in the years to come. It is a proud thing to be a citizen of the State of New York, not because of our great population and our natural resources., nor on account of our industries, our trade., or our agricultural development., but because the citizens of this State more than any other State in the Union, have grown to realize the interdependence on each other which modern civilization has created. Under the leadership of the great Governor whose place you have selected me to fill has come a willingness on our part to give as well as to receive, to aid, through the agency of the State, the well-being of the men and women who, by their toil, have made our material prosperity possible. I object to having this spirit of personal civil responsibility to the State and to the individual which has placed New York in the lead as a progressive commonwealth., described as "humanita75

Page  76 The First Inaugural Address as Governor rian." It is far more than that. It is the recognition that our civilization cannot endure unless we, as individuals, realize our personal responsibility to and dependence on the rest of the world. For it is literally true that the "self-supporting" man or woman has become as extinct as the man of the stone age. Without the help of thousands of others, any one of us would die, naked and starved. Consider the bread upon our table, the clothes upon our backs, the luxuries that make life pleasant; how many men worked in sunlit fields, in dark mines, in the fierce heat of molten metal, and among the looms and wheels of countless factories, in order to create them for our use and enjoyment. I am proud that we of this State have grown to realize this dependence, and, what is more important, have also come to know that we, as individuals, in our turn must give our time and our intelligence to help those who have helped us. To secure more of life's pleasures for the farmer; to guard the toilers in the factories and to insure them a fair wage and protection from the dangers of their trades; to compensate them by adequate insurance for injuries received while working for us; to open the doors of knowledge to their children more widely; to aid those who are crippled and ill; to pursue with strict justice, all evil persons who prey upon their fellow men; and at the same time, by intelligent and helpful sympathy, to lead wrongdoers into right paths - all of these great aims of life are more fully realized here than in any other State in the Union. We have but started on the road, and we have far to go; but during the last six years in particular, the people of this State have shown their impatience of those who seek to make such things a football of politics or by blind, unintelligent obstruction, attempt to bar the road to Progress. Most gratifying of all, perhaps, is the practical way in which we have set about to take the first step toward this higher civilization, for, first of all, has been the need to set our machinery of government in order. If we are to reach these aims efficiently without needless waste of time or money we must continue the efforts to simplify and modernize. You cannot build a modern dynamo with the ancient forge and bellows of the medieval blacksmith. 76 -n

Page  77 Thne First Inaugural Address as Governor The modernization of our administrative procedure, not alone that of the State,, but also of those other vital units of counties, of cities., of towns and of villages, must be accomplished; and while in the unit of the State we have almost reached our goal, I want to emphasize that in other units we have a long road to travel. Each one of us must realize the necessity of our personal interest., not only toward our fellow citizens, but in the Government itself. You must watch, as a public duty, what is done and what is not done at Albany. You must understand the issues that arise in the Legislature, and the recommendations made by your Governor., and judge for yourselves if they are right or wrong. If you find them right it is your duty as citizens on next election day to repudiate those who oppose, and to support by your vote those who strive for their accomplishment. I want to call particularly on the public press of this State in whose high standards I have the greatest confidence, to devote more space to the explanation and consideration of such legislation as may come up this year, for no matter how willing the individual citizen may be to support wise and progressive measures., it is only through the press, and I mean not only our great dailies but their smaller sisters in the rural districts, that our electorate can learn and understand what is going on. There are many puzzling problems to be solved. I shall here mention but three. In the brief time that I have been speaking to you, there has run to waste on their paths toward the sea, enough power from our rivers to have turned the wheels of ýa thousand factories, to have lit a million farmers' homes - power which nature has supplied us through the gift of God. It is intolerable that the utilization of this stupendous heritage should be longer delayed by petty squabbles and partisan dispute. Time will not solve the problem; it will be more difficult as time goes on to reach a fair conclusion. It must be solved now. I should like to state clearly the outstanding features of the problem itself. First, it is agreed,, I think, that the water power of the State should belong to all the people. There was, perhaps, some excuse for careless legislative gift of power sites in the days 77J. I I IN I- - - - I.

Page  78 Thne First Inaugural Address as Governor when it was of no seemingly great importance. There can be no such excuse now. The title to this power must vest forever in the people of this State. No commission, no, not the Legislature itself has any right to give, for any consideration whatever, a single potential kilowatt in virtual perpetuity to any person or corporation whatsoever. The Legislature in this matter is but the trustee of the people, and it is its solemn duty to administer such heritage so as most greatly to benefit the whole people. On this point there can be no dispute. It is also the duty of our legislative bodies to see that this power, which belongs to all the people, is transformed into usable electrical energy and distributed to them at the lowest possible cost. It is our power; and no inordinate profits must be allowed to those who act as the people's agents in bringing this power to their homes and workshops. If we keep these two fundamental facts before us, half of the problem disappears. There remains the technical question as to which of several methods will bring this power to our doors with the least expense. Let me here make clear the three divisions of this technical side of the question. First, the construction of the dams, the erection of power houses and the installation of the turbines necessary to convert the force of the falling water into electricity. Second, the construction of many thousands of miles of transmission lines to bring the current so produced to the smaller distributing centers throughout the State; and Third, the final distribution of this power into thousands of homes and factories. How much of this shall be undertaken by the State, how much of this carried out by properly regulated private enterprises, how much of this by some combination of the two, is the practical question that we have before us. And in the consideration of the question I want to warn the people of this State against too hasty assumption that mere regulation by public service commissions is, in itself, a sure guarantee of protection of the interest of the consumer.

Page  79 Thne First Inaugural Address as Governor The questionable taking of jurisdiction by Federal courts, the gradual erection of a body of court made law, the astuteness of our legal brethren, the possible temporary capitulation of our public servants and even of a dormant public opinion itself, may, in the future, as in the past, nullify the rights of the public. 1, as your Governor, will insist, and I trust with the support of the whole people, that there be no alienation of our possession of and title to our power sites, and that whatever method of distribution be adopted, there be no possible legal thwarting of the protection of the people themselves from excessive profits on the part of anybody. On another matter I tread perhaps a new path. The phrase, 44rich man's justice," has become too common nowadays. So complicated has our whole legal machinery become through our attempt to mend antiquated substructures by constant patching of the legal procedure and the courts that justice is our most expensive commodity. That rich criminals too often escape punishment is a general belief of our people. The difficulty with which our citizens maintain their civil rights before the courts has not been made a matter of such public notice but is equally serious. It is my hope that within the next two years we shall have begun to simplify and to cheapen justice for the people. Lastly, I want to refer to the difficult situation to which in recent years a largyepart of the rural population of our State has come. With few exceptions it has not shared in the prosperity of the urban centers. It is not enough to dismiss this problem with the generality that it is the result of changing economic conditions. It is time to take practical steps to relieve our farm population of unequal tax burdens, to install economies in the methods of local government, to devise sounder marketing to stabilize what has been too much a speculative industry, and finally to encourage the use of each acre of our State for the purpose to which. it is by nature most suited. I am certain that the cities will cooperate to this end, and that, more and more, we as citizens shall become State-minded. May I, as your newly elected Governor, appeal for your help, 79f

Page  80 Thne Annual Message to the Legislature, 1929 for your advice, and, when you feel it is needed, for your criticism? No man may be a successful Governor without the full assistance of the people of his own commonwealth. Were I as wise as Solomon, all that I might propose or decide would be mere wasted effort, unless I have your constant support. On many of the great State questions that confront us, the platforms and the public pledges of candidates of both parties are substantially agreed. We have passed through a struggle against old-time political ideas., against antiquated conservatism, against ignorance of modern conditions, marked by serious disagreements between the Legislative and the Executive branches of the Government. As I read the declarations of both parties in asking the support of the people at the polls, I can see little reason for further controversies of this kind. There is a period in our history known in all our school books as the "Era of Good Feeling." It is my hope that we stand on the threshold of another such era in this State. For my part, I pledge that the business of the State will not be allowed to become involved in partisan politics and that I shall not attempt to claim unfair advantage for my party or for myself, for the accomplishing of those things on which we are all agreed. You have honored me greatly by selecting me as your Chief Executive. It is my hope that I shall not fail you in this critical period of our history. I wish that you may have a continuance of good government and the happiest of New Years. 14 (IThe Annual Message to the Legislature (Excerpts). January 2., 1929 To the Legislature: I COME before the Legislature, not only in accordance with the Constitution to communicate the condition of the State, but also to express the hope and belief that neither you nor I are entering upon our offices with partisan purpose. From the day of our elec8o OW

Page  81 Thne Annual Message to the Legislature, 1929 tion we become individually and jointly the representatives of all the people of the State. We are charged with the duty of carrying on the existing functions of the Government, of initiating changes in present laws, made necessary by changing times, and of undertaking also new projects which an advancing civilization makes desirable. The past six years have been an unparalleled era in our State. We have pointed the way of progress to our sister States and we must not allow this progress to flag during the coming year. Most of our problems are not political: they can be solved by the same kind of cooperation on your part which I as the Executive of the State hereby offer to you. A few are matters of an honest difference of opinion; most of these also can, I hope, find practical solution by frank discussion and honest effort to obtain results.... (Here followed a statement on State finances.) AGRICULTURE I want the agricultural problems studied without regard to partisan politics and it is my hope that through appointing an agricultural commission composed of members of the Legislature, master farmers, representatives of the Col* lege of Agriculture, the Grange, the Farm Bureau, the Home Bureau, the Dairymen's League and other farm cooperatives, the Legislature from their recommendations will be able to act favorably and constructively on this most important subject. It may be that adequate investigation will show that many of the farms abandoned within the period of agricultural depression since i 920 should not be restored to agriculture but should be devoted to growing a future timber supply for the people of the State. Also we do not want the present alarming rate of farm abandonment to continue: we must therefore make special efforts to make it possible for those who are now engaged in agriculture on suitable agricultural land, to continue under more favorable and more profitable conditions. I hope that this agricultural commission will make a special

Page  82 Thne Annual Message to the Legislature, 1929 study and investigation of the whole farm assessment and tax situation in order to obtain a fairer adjustment of the farmers' taxes. The ultimate goal is that the farmer and his family shall be put on the same level of earning capacity as his fellow American who lives in the city. The problem of distribution of farm products should also be studied to the end that the unnecessarily high differential between what the farmer receives and what the consumer pays may be materially lowered, giving a better price to the farmer for his products and a lower cost to the consumer for what he buys. WATER POWER On the subject of the development of water power sites, owned in part or in whole by the people of the State, I am convinced of two facts: First, that there is a definite demand for the undertaking of their development -not several years hence but this year; second, that the title and constant control of the power generated at the sources shall remain definitely in the people and shall not be alienated by long term leases. This is one of those questions on which I hope we can reach an agreement. The development of our statewide park and parkway system has, I think, ceased to be a matter of political controversy and will, I am confident, go forward with your assistance.... (Here followed statements on grade crossings, public works, canals, aviation, and four-year term for Governor.) COUNTY AND TOWN GOVERNMENTS Ican see no object in being anything but frank with you in regard to the business efficiency of our system of town and county governments. In recent years our system of State Government has been brought to a high level of efficiency. Why should any of us pretend any longer that our county and town governments do not require the same kind of overhauling which we have given to the affairs of the State? Even the school children know that we maintain many useless offices in our towns, that many functions now exercised by town officials should be assumed by county manage82^

Page  83 The Annual Message to the Legislature, 1929 ment, that there is an almost complete lack of budgeting, that there is an equal lack of proper auditing, and, in the final analysis, that the average taxpayer does not know why or where his tax money is being spent. It would be a fine thing if you and I, laying politics and partisanship aside, could take definite steps at this session of the Legislature toward this reform, which everybody knows is so vitally necessary. I am confident that the public will support an honest effort on our part, for I am not enough of a cynic to believe that the public is indifferent to wasteful or outworn governing methods. LABOR When I consider the extraordinary progress which has been made in labor and social legislation, I am reminded of the fact that eighteen years ago, when I was a member of the Legislature, any person advocating a large part of the laws which have been enacted in the succeeding years would have been called a dangerous radical. That is the universal history of social progress. While much has been accomplished so far, we cannot stand still, and I recommend to you the following program which I believe to be in accordance with the needs of the day: 1. A real eight-hour day and forty-eight-hour week for women and children in industry. 2. The establishment for them of an advisory minimum or fair wage board. 3. The extension of workmen's compensation to give its benefits to all occupational diseases. 4. The prohibiting of the granting of temporary injunctions in industrial disputes without notice of hearing; and provision for trial before a jury of any alleged violations of injunctions. 5. The immediate study by a commission of experts of the subject of old-age security against want. 6. The continuation of such provisions of the emergency rent laws as are necessary. 83 1-3~ 1 CI

Page  84 Thne Annual Message to the Legislature, 1929 7. Further elimination of unhealthy living conditions in the congested areas. 8. Declaration by law that the labor of a human being is not a commodity or an article of commerce. HEALTH While we have made and are making splendid progress in caring for the general health of our citizens, there are two specific matters in which we can lay the foundations for great public benefit. CRIPPLES The first of these is the care of adults and children who, through accident or disease, are so crippled in body that they are unable to lead useful and happy lives. It is estimated that at least 50,000 men., women and children in the State of New York are thus seriously handicapped, and many of them require constant attendance on the part of some able-bodied person. As a matter of good business, it would pay the State to help in restoring these cripples to useful citizenship, and the great majority of them can., with the aid of modern medical science, be so restored. Most of them are, however, not today receiving adequate care or treatment for the very good reason that such treatment costs more time and money than the average family can afford. But there is an added reason. I conceive it to be the duty of the State to give the same care to removing the physical handicaps of its citizens as it now gives to their mental development. Universal education of the mind is, after all, a modern conception. We have reached the time now when we must recognize the same obligation of the State to restore to useful activity those children and adults who have the misfortune to be crippled. I shall submit to you a carefully worked out program to initiate this much-needed care. SARATOGA SPRINGS The State has during recent years acquired one of the greatest gifts of nature in the whole world - the mineral springs at Sara8 4 -ow

Page  85 Thne Annual Message to the Legislature, r929 toga. I am not satisfied that the program for their development in the past has taken sufficient account of the great benefits to mankind that can be derived from them as medicinal and therapeutic agents. We in this country are far behind Europe in the internal and external use of natural mineral springs for health purposes. The springs at Saratoga should be developed primarily for health purposes, under far more careful medical supervision than we have hitherto attempted. The physical development of the State properties at Saratoga must proceed, and I ask you to authorize the appointment of a temporary commission of scientific and medical experts, in order that a careful plan may be worked out under their advice. EDUCATION The principal mandatory increase in the coming budget will be the additional sum, running probably to nine million dollars, required for the extension of the better education of our citizens. The people of the State are unanimous in support of our liberal policy. Under the present methods of apportioning State funds to rural school districts, the poorer districts in many instances fail to receive their fair share. The method of apportionment should be simplified and made to conform more closely to the relative wealth of the districts. JUDICIAL REFORM While I am confident that the citizens of the State demand legislation aimed to diminish crime and approve the policy of prison reform, still there are many thinking people who believe that we have not yet gone to the root of our troubles. By a long series of piecemeal enactments, covering many years, we have built up a highly complicated system of judicial procedure, both criminal and -civil., which does not conform to the ideals of modern efficiency or simplicity. A growing body of our citizens complain of the complexities, of the delays, and of the costliness of private and of public litigation. I do not for a moment believe either that the 85--

Page  86 Thne Annual Message to the Legislature, 1929 situation can be greatly improved by minor amendments to the existing system, nor do I believe that a drastic reform can be accomplished in one or two years. It is time, however, that a deeper study of the whole subject should be made by a body of citizens representing the bench, the bar and laymen. After conferring with you, I hope that I can recommend the definite initiation of this at a later time in the session.... (Here followed statements on "ambulance chasing.," modernization of inheritance laws, election law changes, initiative and referendum of Constitutional amendments, soldiers in veterans' hospitals, state census.) In my inaugural address to my fellow citizens I have already pledged myself to seek no mere personal or partisan advantage in the performance of my duties as Governor. I feel sure that the legislators of both parties will join me in this pledge. He best serves his party who best serves his State. Let us all at this session rid ourselves forever of that blighting dread of following in the rear guard of another's triumphal procession along the road to better government which has too often in the past prevented any progress whatsoever. It is of small moment who first points out that road. The important thing is, having once seen the proper course, that -we should turn toward it, fight for its adoption and march shoulder to shoulder with the others toward the goal. In conclusion may I urge you all, individually, to come to me with problems, with suggestions, with honest differences of opinion as often and as freely as I hope you will let me come to you. The verdict on our relations that I most desire from you is that I have at least been fair and reasonable and friendly. Let a common desire to serve our State unite us in a common friendship. 86

Page  87 Th# nua-esget"h7Lgsaur,13 '5 nITe Annual Message to the Legislature,13 (Excerpts). January 1, 1930 To the Legislature: WE ARE entering a new year with a clean slate, and I offer to you, a new Legislature, my own hearty cooperation in carrying on our mutual tasks. You will find me ready at all times to talk over the problems of the State with you individually or collectively; as I said last year, most of our work is not partisan in its nature and should be considered and debated solely from the viewpoint of the State's welfare. A crying need for wise and immediate legislative action on these important matters has been made manifest by events of the past year: 1. Through indifference and lack of knowledge of actual conditions on the part of our citizens, through false economy by previous legislatures and through our failure to apply to the whole problem of the convicted criminal the results of enlightened and modern research, we have allowed our prisons to become breeding places of new crimes. 2.The meshes of our banking laws have been woven so loosely as to permit the escape of those meanest of all criminals who squander the funds of hundreds of small depositors in reckless speculation for private gain. The entire Banking Law is in need of revision and the Banking Department needs immediately far more adequate inspection facilities. 3. Our antiquated Public Service Commission Law has proved itself unable to cope with the enormous growth and huge consolidations of public utility corporations and it has become evident that new methods of regulation, supervision and administration must be devised. 4. Selfish, and indifferent people should no longer be favored by exemption from the burden we now impose on the generous and charitable in providing for the care of those un807

Page  88 Thne Annual Message to the Legislature, 1930 able to support themselves in their old age. This is a common duty of all citizens and should be borne, under a wise and systematic plan, by all taxpayers alike. During the past year commissions or conferences of able and qualified public-minded citizens and legislators have studied what should be done on these matters. The determinations which result from their labors are too important to be condensed in the restricted limits of this message. At a very early date I shall call their conclusions, together with specific recommendations, to your attention by separate special messages. JUDICIAL REFORM Many, probably a great majority, of our citizens continue to be dissatisfied with the existing administration of justice. They object to the costliness, the delays and the complexities of civil actions and to the inequalities and slowness of criminal procedure. They ask that we go to the roots of the disease and cease our sporadic efforts merely to prune off occasional dead branches. Because the great majority of parties to court actions are not lawyers, it seems fitting that laymen should have a large part in any comprehensive study and revision of the methods by which their actions at law should be handled. I asked the last Legislature for a mixed commission of laymen and lawyers. Instead, a bill was passed creating a body composed wholly of lawyers, most of them members of the Legislature. I vetoed that bill; and now renew my recommendation of last year. In advance of any general reorganization of the methods of doing justice, there are, of course, certain obvious things which may be accomplished at once. I desire at this time to call your attention to two such matters. The first is a general strengthening of the statutes regarding perjury. The second is the proposal to permit the prosecution in criminal cases to impeach its own witnesses when it finds itself the victim of deliberately perjured testimony. I am aware that this recommendation is not approved by 88R

Page  89 The Annual Message to the Legislature, 1930 all members of the bar, but I think it nevertheless deserves serious consideration at the hands of the Legislature. MODERNIZING LOCAL GOVERNMENT The taxpayers of the State are coming to realize that if the taxes on their farms and houses are being carelessly or extravagantly expended it is the direct fault, not of the State but of their local government agencies. National, State and city governmental machinery has been generally improved in efficiency and economy of operation but town and county government has not been modernized and therefore presents extraordinary instances of waste and inefficiency. Several other States have already begun to modernize local government, using as a basis the principle of home rule, and making the establishment of new forms to meet new needs permissive rather than mandatory. It is my thought that the same principle could well be adopted by New York. Several years ago a legislative committee reported in favor of many drastic changes. No action followed. The necessity is today even greater. It is time to consider and act on these particularly important questions: 1. A limitation of the debt-incurring powers of counties and of towns, to prevent unpleasant and unsound conditions such as have already arisen in a number of cases. 2. A rearrangement of the number and duties of town officers. 3. Possible new forms of county government. 4. The right to consolidate various town and county operations to avoid duplication. 5. The right of two or more counties to unite in the exercise of certain functions without loss of county individuality. All of these changes in the Constitution or in statute can well be placed upon a permissive basis. I am a firm believer in home rule and recognize the right of the citizens of a county to determine their own form of local government. However, under our present laws no county can modernize 89 I I, _ _

Page  90 The Annual Message to the Legislature, 1930 its machinery, although it may greatly desire so to do, without the aid of the State Legislature in removing the existing legal barriers thrown across the road to economic reform.... (Here followed statements on a State crime investigating bureau, State Police, and parks.) SARATOGA SPRINGS At my suggestion a commission was appointed last spring to consider the development and best use of the Saratoga Springs for health purposes. An excellent and comprehensive report will shortly be presented. It appears clear that an immediate start in this humanitarian work can be made. I emphasize that definite control of the waters by the best attainable scientific and medical experts is the only way to bring about the best therapeutic results. We can provide health facilities for our own citizens and at the same time set up a model which will be of enormous future value to the proper development of other mineral springs in different sections of the United States. LABOR Labor legislation must keep step with changing developments in industrial life and with forward steps in social welfare. I recommend to you the following program: i. The inclusion within the coverage of the Workmen's Compensation Law of all diseases arising from occupational tasks - in other words, making last year's law a real law. 2.A genuine eight-hour day and forty-eight-hour week for women in industry, not the present counterfeit which masquerades under this title. 3. The establishment for women and children of an advisory minimum or fair wage board. 4. A raising of the limit for compensation to twenty-five dollars per week so as to include all types of disabilities. The present distinction between partial and total disabilities is arbitrary and without reason. 90f I'll -

Page  91 Thne Annual Message to the Legislature, 193 0 5. Regulation by the State of fee-charging employment agencies. 6. Declaration in the form of a statute, that the labor of human beings is not a commodity or an article of commerce. 7. Prohibition against the granting of temporary injunctions, without notice of hearing, in industrial disputes, with provision for trial before a jury of any violation of injunctions when granted. 8. Last year I signed the new multiple dwelling bill because it offered a definite step in advance. It still has certain defects which should be remedied. We should look to improved legislation over a period of years in order to abolish dark rooms and provide a fair minimum of sanitary provisions in all tenement houses. ELECTRICITY Last year after much study I made to the Legislature a definite proposal for the long delayed development of the State-owned water power of the St. Lawrence River. This was deliberately pigeonholed. I now renew my recommendation of last year. It was based on a simple declaration of principle - that the ownership, development and operation of the St. Lawrence power resources remain forever in the actual possession of the people of the State or of an agency created by them, and that the electricity so generated be sold to distributors by contract upon a basis to insure a fair and reasonable rate to the consumer, especially the household user. At the same time I thought it advisable that the State agency should at least provide the financing of, and retain the fee to, any system of State-wide transmission of electricity made necessary by the new power development. As a mere matter of saving in interest rates alone this would reduce the cost of electricity many millions of dollars each year, for the consumer of course pays the interest and dividend charges on the project. Let us stop once and for all the silly talk that the electricity available by developing the St. Lawrence is not needed or not

Page  92 The Annual Message to the Legislature, 1930o usable in a practical way. We know that private companies are only too eager to proceed if the State were to abandon its rights. Let us establish the policy, and ask the proposed trustees to submit to the next Legislature a practical plan based on that policy. If they find a plan and it commends itself to the Legislature, let them proceed full steam ahead. It is becoming more and more clear that the families of this State, whether they live in the cities, in the villages or on the farms, have been paying too much for their electricity, and are therefore not in a position to use to a proper degree the many labor-saving devices of modern invention. Furthermore, rates between different localities show much too great variance, and rural installations are in many cases prohibitive. Whether mere regulation of electric utilities in the future can be made more successful than it has proved in the past remains a serious question. In the meantime the development of the great State-owned natural resources offers a definite method of relief... (Here followed statements on grade crossings and a proposed State business bureau.) AGRICULTURE The year 1929 was marked by the most important practical assistance to the agriculture of this State in this generation. Over a month before I actually assumed the duties of Governor, a committee of agricultural leaders met at my request to report on what steps should be taken. These gentlemen were, in January, formed into the Agricultural Advisory Commission and immediately they made important recommendations which I transmitted to the Legislature. I am happy to say that all of the principal objectives were translated into law. The chief aim of this legislation has been to relieve the rural counties of the State from a highly unequal tax burden. Besides these tax savings, the previous Legislature, on my recommendation, appropriated over three million dollars under a new law for the assistance of small schools throughout the State. 92 molwomo ýII

Page  93 Thne Annual Message to the Legislature, 1930 The Governor's Agricultural Advisory Commission continues to meet and will make further recommendations. For instance., I hope that this Legislature will again pass a measure to relieve the counties of their share of building bridges on State highways; such a measure was passed last year but an accompanying appropriation to carry it into effect was unfortunately overlooked. We need further rural tax reduction through elimination of superfluous local officials, through closer State supervision of town and county expenditures and through better business methods in local government administration. We need to encourage the farmers of the State to establish real business selling organizations - in other words., greater cooperation among the farm peoýple for the promotion of their own interests. We need to increase the electrification of the farms by standardization of installation charges and reduction of rural electricity rates. We need to emphasize the responsibility of school trustees and school boards in handling the State aid. We need further development of the reforestation of lands not primarily suited to agriculture. Finally, we need a broad survey of all of the phases of agricultural production in this State, from a completion of the study of soils to the marketing of the products. To devote to agriculture the same interest and intelligence that is now being given to industry will mean new recruits for farming, better living conditions, and the breaking down of artificial and unnecessary barriers between the rural and the urban communities of the State.... (Here followed statements on highways, four-year term for Governor, State census, election law changes, and State finances.) In concluding my message last year I said that it is of small importance who first points out the road to progress, and expressed the hope that all measures affecting the welfare of the State would be discussed frankly and fully between us, with no consideration on either side of partisan advantage. Possibly that idea was too novel to be carried out as fully as I suggested. There was, however, one conspicuous example of the advantage of this method 93

Page  94 The Second Inaugural Address as Governor when it was honestly tried out, which I hope will serve as an incentive to other experiments along this line during this session. I refer to the recommendations transmitted by me to you from the Agricultural Advisory Commission. Although these suggestions came primarily from a commission appointed by your Governor, they were considered and adopted in great part by a practically unanimous vote of the Legislature, and while the actual bills which passed were those introduced by members of the majority, I can assure you that your Governor signed them cheerfully and promptly, as the record shows. That is the way I hope all proposed legislation will be considered this year. In particular do I hope that these four subjects be treated in this spirit of friendly cooperation: the reform of the administration of justice; the permissive reorganization of town and county government; legislation relating to social welfare including the prison and hospital program, and the providing of cheaper electricity in our homes. I express the same wish with which I concluded my message last January- that a common desire to serve our State unite us in a common friendship. 16 (The Second Inaugural Address as Governor. January 1, 1931 (Improvement of local government - Interest in government.) To ALL of you who are here today and to all the people of the State of New York I extend New Year's Greetings. May 1931 be a year of happiness, a year of greater well-being, a year in which all of us may dedicate ourselves more unselfishly and more truly to the good of our commonwealth and of our fellow men. Twenty years ago today I first entered into public service, and on this anniversary it is not unnatural that I should think of the progress of government during that period. On January i, 1911, the people of New York were experiencing for the first time in 94

Page  95 Thne Second Inaugural Address as Governor many decades a sustained public interest in their State Government,, an interest first stimulated by the fine insistence of Governor Hughes and later translated into action at several legislative sessions. At that time were laid the foundations for the continuing general attention of our citizens toward State Government which has followed through all these years. With this awakening of interest followed logically the studies of the structure and functioning of the State Government itself which culminated in the Constitutional Convention of 1915, and eventually resulted in the reorganization of the departments and the creation of the present businesslike budget system under the leadership of Governor Smith. As a summing up of this quarter century I think that we can well say that we have made great strides in modernizing the Government of the State and in vastly increasing both its honesty and its efficiency; in bringing this Government into a sound and responsible relationship to the social needs and the welfare of the citizens themselves; and at the same time in avoiding the pitfalls of paternalism. This noteworthy and continuing improvement in the theory and practice of State Government has come in part from progressive leadership, but most of all from a genuine public interest backed up by the willingness of thousands of citizens to give practical and unselfish service. Therefore while properly we recognize the many tasks, the many new problems which lie ahead, still I think we can take genuine pride and satisfaction in the structure and functioning of that instrumentality of our sovereignty known as the Government of the State of New York. But this gratifying modernization and perfecting of our State Government serve at the same time to accentuate by contrast our lack of progress in improving local government. Not long ago I received a letter from an eminent editor, telling me tearfully that all local government had broken down, and begging me as Governor - note the unconscious willingness to accept a Tsar or absolute dictator in the Governor's chair in Albany - to usurp and assume the functions of the officials duly elected by the commumi

Page  96 Thne Second Inaugural Address as Governor ties themselves. He ended with the suggestion that if I did not do so,, the alternative would be to call out the militia and establish martial law. I cite this as an illustration of the present dangerous tendency to forget a fundamental of American democracy which rests on the right of a locality to manage its local affairs - the tendency to encourage concentration of power at the top of a governmental structure alien to our system and more closely akin to a dictatorship or the central committee of a communistic regime. Now my friend was right about one thing. Local government as a whole is open to severe criticism, and this applies to the cities, to the towns, to the counties, and to the multiplicity of other local agencies. During this century the problem of local government has been complicated by three new factors - the unparalleled growth of city populations, the birth of a new type of community known as the suburban area, and, piled on top of these, a wholly new series of human physical needs such as highways, pavements, water., sewers,, lighting, bridges, tunnels, schools, which affect every inhabited area of the State. We have shifted and shuffled our population by the millions, we have made more physical changes in twenty-five years than in the previous two hundred and fifty, and we have expected the old machinery of local government without any redesigning to carry the new load. The only real wonder is that the inefficiency is not worse, and that public honesty is probably on a higher general plane among the rank and file than it was a generation ago. But why are our local governments archaic in design, unsuited for the purpose for which they are established, unsatisfactory in their functioning, and profligate in the spending of the taxpayers' contributions? The answer is not hard to find. It is because the individual citizen is indifferent to his local government problems. The stress of business competition in this hectic twentieth century of ours, the even more feverish pursuit of pleasure to compensate for our strenuous business days - these so occupy the time and thought of our average taxpayer as to leave no inclination either to study or assist in the conduct of the community in 96A

Page  97 Thne Second Inaugural Address as Governor which he lives. We do, not trust our personal business affairs to strangers; we do not take our pleasures vicariously; but when it comes to running our local communities we gladly let John Doe do it. We do not even take the trouble to inquire what manner of person John Doe may be when he is nominated by a political party for a responsible local office. We do not know enough about the machinery of our local government to find out after he is elected whether he has been an efficient official or not. We know neither what his job is nor how he has performed it. We grumble at the taxes, but have not the slightest idea what could be done to lower them, because we do not know for what they are spent. We are occasionally aroused into driving out the grafter and the crook but we allow complacently a hundred times the amount of their peculations to be frittered away for needless and costly duplication of governmental functions under a system designed originally for the simple needs of our Colonial forefathers. We are far* more familiar with the structure of our national Government at Washington and of our State Government at Albany than we are with the Government of our own town, village, city, or county. Our criticism is seldom valuable because we have no clear idea of what is wrong and not the faintest real conception of any practical remedy. It would be appalling to compute the millions of dollars which our local taxpayers needlessly pay as the price of their indifference. Our State Government has been reformed because of the ability of great leaders to awaken public interest in the affairs of State. Our local communities, alas, only in rare instances., have aroused themselves to an interest in local government extending down to the average citizen. Too often reform associations, preachers, editors, committees of eminent citizens have, with the best intentions, come forward for a few months only to right an emergency evil, or else they have represented one angle only in a many-sided problem, or else they have had an ulterior motive of mere partisanship. It is impossible to get better government locally if only 5 percent of the electorate participate in civic affairs two months of the year while 9ý7

Page  98 Thne Second Inaugural Address as Governor the other 95 percent remain uninterested all twelve months of the year. Let us get this picture clearly before us. We have three main divisions of Government: First, the Federal, operating, at least in theory, in the national field and in accordance with strictly limited powers of control ceded to it by the sovereign States; second, the State, moving only in the statewide field and careful not to confuse State with local functions; third, the several divisions of local government., authorized to be sure by the State, but based on the centuries-old conception of the town meeting. When States become indifferent to their duties, the natural tendency is for the national Government to grasp for more power. In like manner if community government becomes slipshod and lax, the way of opportunism is to carry the problem to Albany and get the local legislators to introduce a bill. Some of us for many years have striven against the multiplicity of local laws passed each year by complacent Legislatures. During the past two years I have the record of having vetoed more bills of this character than any previous Governor. Back of the immediate reason in the individual case has been the fundamental thought that the elimination of piecemeal legislation might to some degree make people think along broader lines and come back another year with a well-thought-out comprehensive plan to cover the subject as a whole. This is, of course, in direct line with what is commonly called the home rule principle. The principle is right. We have started to apply it. But at the same time its success must depend on local interest on the part of the 95 percent of the citizens as well as of the 5 percent if we are not to slip back into the system of a generation ago when even the number of dog catchers in a community was made the subject of State legislation. How often do people stop to realize the relative influence which the three great branches of Government play in their daily lives? What daily contact has the average man or woman with the activities, the machinery or the administration of the Government in Washington? What personal touch has the average man 98I

Page  99 Thne Second Inaugural Address as Governor or woman with the Government in Albany except when traveling over a State highway or visiting a State park? If you own a piece of real estate, whether it be a business property or a home or a farm, do you ever stop to' realize that when you pay the taxes on it not one cent goes to Albany or to Washington? Much has been said of the mounting burden of taxation; yet lack of thought leads most of us to forget that by far the greater part of the increase has been caused during this generation by mounting local expenditures. And this is further emphasized by the fact that over half of all the tax money collected by the State of New York is spent not by the State, but is returned by the State to the counties and communities for local expenditure. It is my ardent hope that in the twenty years to come the people of New York will be able to accomplish as much for the cause of improved local government along American lines as we have accomplished for our State Government in the past twenty years. This can come only through leadership and through a greater dedication on the part of the individual, giving more generously of his time and thought and personal service. First, we need to plan, to go to the root of the problem in order that specific remedies may be offered. When this is done I am very certain that the Legislature and the administration of this State will lend their aid and sympathy to the granting of the necessary authority. I have spent two happy years in Albany and today I look forward to 193 1 and i1932 as giving me, because of the experience which I have had, a greater opportunity for usefulness to the people of the State. The older I grow the more insistent I am that the average of the citizenship of the State will respond to the presentation of problems of government if the fundamentals of the issues are presented to them clearly and honorably. I am convinced, too, that the electorate has a sense of proportion and, given the facts, will of its own accord recognize them in the order of their importance. That is why on this New Year's Day I have taken occasion to speak somewhat at length on government. One part at least of 99

Page  100 The Annual Message to the Legislature, 1931 our Government we can be proud of- the State is functioning well. Another part, the one which enters more closely than any other into our daily affairs, needs our attention, our interest and our earnest efforts to improve. The vitality of our American institutions has been amply proven in the past. We have met difficulties before this and have solved them in accordance with the basic theories of a representative Democracy. Let us not at this time pursue the easy road of centralization of authority lest some day we discover too late that our liberties have disappeared. Let us pause in our pursuit of materialism and pleasure, and devote greater efforts to retain these liberties within the communities in which we dwell. That is the New Year's message from the Governor of your State who pledges himself anew to devote the best that is in him to the whole-hearted service of the men and women and children of the State of New York. 17 (The Annual Message to the Legislature (Excerpts). January 7, 1931 To the Legislature: I REPORT to you, a new Legislature, in accordance with the Constitution. I cannot truthfully inform you that all is well with the condition of the citizens of the State for, during the past year, in common with the rest of the Nation, many of them and many of our industries have experienced a decline in prosperity which often has brought about suffering and hardship. It is greatly to be hoped that those are right who call this a period of readjustment and that the near future will bring relief. It is not calm waters but the stress of angry seas in time of storm that tests the soundness of the construction of any ship: the Ship of State is no exception. I conceive it to be not only the duty of a State to promote the prosperity of its citizens, but to aid them in every possible way during dark days when prosperity has been succeeded by adversity. 100 II

Page  101 Thne Annual Message to the Legislature, 193 1 Therefore it gives me satisfaction to be able to report to you not only that the finances of the State are in good condition, that the orderly conduct of State activities is proceeding according to law, but also that the State has taken the lead in the solution of many pressing emergency problems arising from economic causes. We have done and are doing all within our power to relieve the emergency and to build against the future. I am confident that in this I shall have your whole-hearted cooperation. CRIME AND ITS PUNISHMENT As a result of the passage of much needed legislation recommended by me a year ago., the State has at last developed a definite prison policy which we are now engaged in carrying out. The adequate housing of the prisoners of the State is proceeding along sound lines and you will find the -report of the Prison Investigation Commission outlines a building program which, when completed in 1935, will furnish modern housing facilities and at the same time give opportunity for the much needed classification, segregation, instruction and vocational training of the many different types of individuals who, because of infringements of law, come into the custody of the State. Better food and clothing have been provided, the corps of prison guards has been strengthened, and a new parole system is now functioning. I ask specifically that the recommendations of the Prison Investigation Commission be carried out, including the erection of a new type of prison. I ask also revision of the existing laws relating to all sentences. This will include also revision of the laws relating to commutation and compensation and clarification and systemization of the varying degrees of executive clemency. At the same time I ask for an extension and improvement of the probation system. Probation is not to be confused with parole. Parole gives provisional release before expiration of sentence to prisoners already in prison; probation, on the other hand, keeps the individual out of prison altogether so long as good behavior continues. 101

Page  102 Thne Annual Message to the Legislature, 1931I All of these steps aim at two great objectives - the prevention of a repetition of crime on the part of the individual and the building up of the individual into a useful law-abiding citizen. I renew my recommendation of last year for a State Crime Investigating Bureau to facilitate the task of local police authorities in the apprehension of criminals. It is also important that the alarming increase in perjury be checked; justice must rest upon truth. HOSPITALS The overwhelming approval given by the voters of the State in the recent election to the bond issue for erection of hospitals, prisons and other buildings for the care of the wards of the State assures, with the cooperation of the Legislature, the completion of the definite building program outlined by me last year whereby by the year 193 there will be adequate provision for all patients. It is especially gratifying to note the strides being made by medical science in mental hygiene. The percentage of cures is slowly but constantly rising, and at the same time we are making progress in the prevention of mental disorders. HEALTH Last spring I constituted a special committee of citizens and experts, headed by President Farrand of Cornell University, to study a new health program for the State. This is the first time a comprehensive survey has been made since the splendid program sponsored by the late Dr. Biggs. The report of this committee will be transmitted to your Honorable Bodies at an early date and will, I am certain, mark a very definite advance in the general subject of public health for adults and children. OLD-AGE SECURITY In 192 9 I recommended to the Legislature a commission to report on Old-Age Security against Want. The report of this commission resulted in the passage of the Old-Age Security bill by the last Legislature, and actual payments under the new law went 102

Page  103 Thne Annual Message to the Legislature, 1931r into effect on January first this year. I have many times stated that I am not satisfied with the provisions of this law. Its present form, although objectionable as providing for a gratuity, may be justified only as a means intended to replace to a large extent the existing methods of poor-house and poor-farm relief. Any great enlargement of the theory of this law would, however, smack of the practices of a dole. Our American aged do not want charity, but rather old age comforts to which they are rightfully entitled by their own thrift and foresight in the form of insurance. It is, therefore, my judgment that the next step to be taken should be based on the theory of insurance by a system of contributions commencing at an early age. In this way all men and women will, on arriving at a period when work is no longer practicable, be assured not merely of a roof overhead and enough food to keep body and soul together, but also enough income to maintain life during the balance of their days in accordance with the American standard of living. The commission which reported last year gathered ample data along these lines on which legislation may be based. I trust that your Honorable Bodies will give this great subject immediate practical consideration. UNEMPLOYMENT You~r Honorable Bodies are well aware of the present abnormal situation in regard to unemployment not only in this State but in the Nation. The State is doing and will do what it can in the way of immediate emergency relief. Public works are being speeded to the utmost; all available funds are being used to provide employment; wherever the State can find a place for a man to work it has provided a job. Our course has been founded on truthful and accurate statistics. Those charged with the duty of collecting these figures for the State have realized the futility and folly of attempting to gloss over or conceal the real situation. In the long run the truth hurts nobody. Because the information regarding the unemployment situation given by the State Department of Labor during the past year has been accurate, it has been 103r%

Page  104 Thne Annual Message to the Legislature, 193 1 possible for the administration to take far-reaching steps both to mitigate and relieve the emergency, and also to plan for the future. Since last spring the Governor's Commission on Stabilization of Industry has accomplished much to prevent the lay-off of workers, to find new employment both through public and private employment agencies, and to coordinate and stimulate local employment efforts. It has worked in close cooperation with local relief agencies. Careful surveys of every part of the State have been made, and individual localities have been greatly aided in establishing comprehensive plans for relief. This commission has been acting under my appointment but without any appropriation. I ask that it be created an official State commission to function for the coming year, and that it be given adequate funds to carry on this emergency work. The above relates to the immediate present. The great future problems of unemployment call for close study. I have invited the Governors of Massachusetts, Rhode Island, Connecticut, New Jersey, Pennsylvania and Ohio to meet with me in Albany on January twenty-third to discuss the problem in its broader aspects. It is my thought that the industrial States of the northeastern part of the Nation can well cooperate in seeking a joint study of facts and existing or proposed methods of relief both here and abroad so that State legislation in the future may be made more nearly uniform. I have a definite program to submit to this conference. Thereafter I shall communicate to you such recommendations as may be adopted at the conference which in my opinion will tend to promote a -farsighted policy of prevention and relief, a policy carried out as uniformly as possible by neighboring States in which somewhat similar conditions exist. LABOR Although this State has taken the lead in labor legislation, there are still certain requirements which are necessary in order to keep step with the newest developments in industrial life and the 104

Page  105 Thne Annual Message to the Legislature, 193 1 newest conceptions of social welfare. I recommend to you the following program: i. The inclusion within the coverage of the Workmen's Compensation Law of all diseases arising from occupational tasks. 2.A genuine eight-hour day and forty-eight-hour week for women in industry. 3. The establishment for women and children of an advisory minimum or fair wage board. 4. Strict regulation by the State of fee-charging employment agencies. 5. The raising of the limit for compensation in all classes of disabilities to twenty-five dollars per week. 6. Declaration in the form of a statute, that the labor of human beings is n ot a commodity or an article of commerce. 7. Establishment in the Labor Department of a special means for the enforcement of the provisions of the Labor Law relating to the eight-hour work day, the prevailing rate of wages, and preference to citizens of New York State on public works. Many of these recommendations have been made by my predecessor and myself for a number of years. I think the time has definitely arrived for recognition by the Legislature of these fair demands by the laboring men and women of the State.... (Here followed statements on a proposed business bureau of information, expediting public works, State highways, bridges and barge canal.) AGRICULTURE The past two years have placed the State of New York in the lead in remedial legislation for -the farmers and rural dwellers. The Governor's Agricultural Advisory Commission, which has been of such inestimable help, will continue, and will make further recommendations to bring into a more sound and equitable relationship the country and the city communities. In other words, we have progressed to the point where we can visualize 105r

Page  106 Thne Annual Message to the Legislature, 193 1 and formulate a practical, definite and far-reaching land policy for the State. Long range planning for the character of the use of land itself has become almost a prerequisite to the building of arteries of transportation, the development of markets, the diversification of crops, flood control, reforestation and the many other needs that fall under the general head of agriculture, conservation and the even broader head of social economics. In a special message I shall later outline this definite land policy, the adoption of which I believe would be of permanent value to every individual and every community. WATER POWER AND PUBLIC UTILITY REGULATION After generations of discussion of the development of the water power resources of the State, the Legislature last year created a Commission for a comprehensive study of a method of development by a public authority. This Commission will transmit its report to your Honorable Bodies within a very short time, and I trust that action will be taken at this session providing for water power development by a public agency for the purpose of producing cheaper electricity for the people of the State. Intimately bound up with the question of water power is that of effective public utility regulation. They both stand out as pressing problems in our industrial and our home life. Two years ago I urged upon the Legislature the need of a fundamental change in our law concerning public utility corporations. The Legislature set up a Commission to study the subject. Both the majority and minority reports of that Commission disclose the ineffectiveness of our present supervision over these corporations; though it is generally conceded that the Public Service Commission is now functioning more effectively insofar as authorized by our present statutes. Regulation of monopolies for centuries under common law principles and under the theory of the original Public Service Commission Law, was based on the underlying principle that these utility companies should furnish fair service at reasonable rates. That purpose in many cases has been thwarted. In some cases rates are too high; profits are beyond any 14o6

Page  107 Thne Annual Message to the Legislature., r93I reasonable return on investment; service is not always satisfactory. The plain truth is that effective regulation as contemplated originally has not been realized. Unfortunately the Legislature last year rejected not only the conclusions of the minority but also the recommendations of the majority of the Commission. Nothing was done. The consumers, and especially the household consumers, continue, of course, to be the losers from this inaction. The problem is not confined to the State alone. It is nationwide. As a result of a long course of judicial decisions and of newly invented methods of financing, the householders and business men of the Nation, in a great many cases, must now pay exorbitant rates, measured not in terms of reasonableness for legitimate investors but rather in terms of speculative profit. We can., of course, have no objection to a reasonable return for the real investor in stocks of utility companies; indeed we should actually do everything possible to safeguard such reasonable return for him. The difficulty is rather with those who seek unreasonably to inflate profits and promote speculative trading by so pyramiding capital structures in holding companies and otherwise that profits are made on stock which is not always represented by actual investment. I remain of the opinion that the proposals of the minority of the Commission last year which were rejected by the last Legislature will go far to meet the immediate problem effectively. The housewives of many parts of the State look to us for relief from rates so high as to deprive them of the advantages of modern science to release them from household drudgery. This ever-growing public demand for more effective regulation should be met promptly. It would be a fine thing if you and I, serving a common master - the people of the State of New Yorkwould unite in this common purpose of bringing into the homes and stores and factories of our State, these modern utilities at a cost reasonably consistent with a fair return to the legitimate investment in these corporations.. 107t

Page  108 The Annual Message to the Legislature, 1931 (Here followed statements on reapportionment, election law changes, four-year term for Governor, State census.) LOCAL GOVERNMENT In the interest of economy and efficiency I again urge upon you the necessity of a complete reorganization and modernization of local government. The machinery of village, town and county government, originally created many generations ago to meet the needs of those days, is now obsolete. I ask you to authorize a commission to be appointed by the Governor to study and report advisable fundamental changes. In the meantime I recommend that a constitutional amendment be adopted permitting the Legislature to provide modern forms of government for any county, subject to referendum within that county. This, of course, does not contemplate the consolidation of counties in any sense; but rather an elimination of present overlapping functions of town and county offices so that local government may be administered more efficiently and economically. During the past several months there has been much public discussion of the advisability of a general investigation into the conduct of the various departments of the local New York City Government and judicial officers therein. Once more it is necessary to clarify the use of well-defined governmental functions. There are three independent and separate branches of the Government. In so far as possible interference by one of these three branches with another should be avoided. The Governor as the head of the executive branch is authorized by statute, under the so-called Moreland Act, to investigate any executive department of the State Government, thus casting upon him the burden of keeping his own executive house in order. Added to this, the Governor may on specific charges remove a few carefully limited and specifically designated municipal and county officials and no others. Finally, where evidence of crime is submitted in substantiated form to the Governor, accompanied by proof that the local machinery of prosecution has failed properly to function therein, he 108

Page  109 The Annual Message to the Legislature, 1931 is empowered and it is his duty to invoke the State agency of the Attorney General'9s office. In the case of the second separate branch of Government - the judiciary - a sound public policy should place the burden of supervision over the various courts and their justices upon the judicial branch itself. This principle has been recognized for many years. Under it the Appellate Divisions for many years have been charged with the duty of supervising the conduct of members of the Bar. More recently they were given authority over some inferior Civil and Criminal Courts. The wisdom of this provision is being well demonstrated by the investigation now in progress in the first department. The other Appellate Divisions are similarly under a duty to initiate proceedings whenever in their opinion they become advisable or necessary. I believe that constitutional and statutory provision should immediately be made to extend the supervisory power and functions of the several Appellate Divisions to cover other courts, such as county courts,. special sessions courts, general sessions courts, city courts and other lower courts, together with the power to remove judges thereof. To the Appellate Divisions should be given the duty of seeing that the conduct of such courts and of their justices is in accordance with the laws of this State and ethical practices. The conduct of the Supreme Court and the Appellate Divisions and of the justices thereof should likewise be subject to regulation by the judiciary itself, in this instance, I believe, by the Court of Appeals, leaving the power of removal of the judges of the higher courts in the Legislature where it now resides. In this way the primary responsibility of maintaining order in the judicial house of the Government would be placed squarely upon the shoulders of the judiciary itself. Finally we come to the duty of the legislative branch of the Government. No one questions the right of the Legislature to investigate any matter of importance to the welfare of the State. It alone can proceed to investigate the conduct of the New York City Government generally, as I told the Legislature of 1930 in no uncertain terms. The responsibility of determining what ac I PRO

Page  110 Thne Annual Message to the Legislature, 193 tion shall be taken by you and what justification there is therefor rests exclusively and squarely with you. It is'not alone your right but your duty to conduct such an investigation if you determine that such course falls within your obligation to maintain the welfare of the State. Two often-forgotten principles must surround the initiation and the conduct of any investigation if permanent good is to result. First, it must as a matter not only of fact but also of public opinion spring from a desire to promote the general welfare and not the political ambitions of any person or party. Second, it must be so conducted that all persons, unless or until formally charged with crime, shall be shielded from suspicion and innuendo through publicity, lest the mere fact of their appearance in the investigation destroy their reputation or impair their standing among their neighbors. These two principles carry out the highest theory of good government as well as the American spirit of fair play. Recent flagrant violations of these principles, impairing the value of the investigations themselves, have impressed upon the public mind the need for their future observance..*0 It seems particularly appropriate that in times of stress such as we are now witnessing, the Governor should again offer to the Legislature his willingness and desire to cooperate for the good of the State. I do so in the hope that this new Legislature will accept this in the spirit in which it is meant. Recriminations and the seeking of mere political advantage bring no rewards either to the State or to the party. It is my firm belief that we can work together for the bettering of our Government and the promotion of the happiness and well-being of the people of New York. 110 - Wý

Page  111 PTheAna MsaetteLgsatr,13 i8 n{Te Annual Message to the Legislature,13 (Excerpts). January 6, 1932 Members of the Legislature: ICOME before you at a time of domestic crisis which calls for the complete laying aside of partisanship and for a unity of leadership and action as complete as if we were engaged in war. Not since the dark days of the sixties have the people of this State and of this Nation faced problems as grave, situations as difficult, suffering as severe. The economics of America, and indeed of the whole world, are out of joint; only the most skillful and concerted care will mend them. That is why I come before you as the Governor of all the citizens of the State to ask you to cooperate and counsel with me, not in your capacities as representatives of individual assembly or senatorial districts but rather as a great legislative body acting and speaking for all parts of the State, united in seeking not local advantages but rather the most courageous and hopeful solution of our common problems. We face the necessity of employing new measures of value for the good reason that many old values have disappeared; new comparisons of property and of man's remuneration for his work, for the good reason that many of the old proportions have been proven false. It would be useless as well as ungracious to' place the blame for our present situation on individuals, or groups., or on any specific acts. What we can do is to learn from the recent years in a spirit of humility and of generosity what to avoid in the process of rebuilding our economic and social structure upon a surer foundation. In the many groups of human beings known as Nations the structure of Government has been so inelastic that reconstruction has been possible only by revolution. We are fortunate that our fathers provided systems, both State and Federal, which permit peaceful change by intelligent and representative leadership to meet changing conditions of human society. III

Page  112 Thne Annual Message to the Legislature, 1932 Let us face the facts. In the field of private endeavor we have retained in large degree, perhaps, the personal liberty of the individual; but we have lost in recent years the economic liberty of the individual. This has been swallowed up in the specialization of industry, of agriculture and of distribution, and has meant that the cog can move only if the whole machine is in perfect gear. We thus see on one hand an overproduction of food and clothing and close by many millions of men and women who lack the medium of exchange - money - with which to ward off starvation and nakedness. We know now from bitter experience that the theory that a Nation could lift itself up by its own bootstraps was not sound; that the cheering thought that the larger the number of people engaged in manufacturing commodities the more these commodities would be used, could be carried too far; that just because a piece of paper was labeled a share of stock or a. bond did not of necessity give it value; that an increasing concentration of wealth and of the power that wealth controls did not guarantee an intelligent or a fair use of that wealth or power. We know that many of those who ran after false gods are heartily sorry for their sins of omission and commission; that many of the leaders of American thought in Government and in business appreciate the errors of their teaching. That is well; and nothing is to be gained by making them the scapegoats. Nevertheless, more than two years have gone by and these leaders have as yet shown us few plans for the reconstruction of a better ordered civilization in which the economic freedom of the individual will be restored. Business and industry have been toiling and are toiling to salvage the old structure. They need more than just to be let alone. The public asks that they be given a new leadership which will help them and at the same time give definite recognition to a new balance based on the right of every individual to make a living out of life. It is true that in any State of this Union of States the complete solving of those economic problems which are national in scope is an impossibility without leadership and a plan and action by '110

Page  113 The Annual Message to the Legislature, 1932 our national Government. Perhaps that will come, but in the meantime we in this State have a very positive duty to do what we can to help ourselves. For example, the larger problems of the national financial system, and therefore of banking, are to a greater degree Federal than State, yet we in New York can and ought to start to apply here the lessons learned during 1930 and 1931. Thoroughly unsound, even if wholly legal, banking practices have been growing for a generation. Many banks became mere, bond-selling houses. Many bankers forgot that it was of doubtful ethics to sell their own securities to their depositors and to trust funds for which they themselves were trustees. Many billions in securities were sold to the public at prices unjustified even by the expectation that we had reached an immutable millennium, a permanent Utopia. Consolidations, mergers, holding companies, investment trusts were touted in every corner of the land, a pyramiding unequaled since the days of the Mississippi Bubble. Today we recognize the unsoundness and the danger. The bubble has burst with all its rainbow glory. The public has burned its fingers in the flame of wild speculation and has learned now to fear the fire. While it still fears the fire is the time for us to act. This action must come from the Legislature of the State, now as in the past. The people through their representatives have at all times found it necessary to place curbs and regulations and supervision on those who handle other people's money. BANKING First, we need new laws to give to the Superintendent of Banks and his department the benefit of assistance and advice in meeting a situation which is abnormal and without precedent. The inflexible provisions of our banking law do not permit adequate handling of emergencies. An advisory council could provide, under proper restrictions, flexibility with safety. With this I am confident that we can give additional protection to the deposits of millions of our people who are depending on their savings 113

Page  114 The Annual Message to the Legislature, 1932 and to the wheels of industry which require banking facilities to meet their payrolls. Second, unsound practices of the past must be eliminated by law from now on. The ethics of banking need restatement; savings must be managed as savings and not confused with commercial or checking deposits. Third, there must be revision of the laws relating to the sale of securities to the public. It is time to differentiate between prospects and true values, or at least to tell an unskilled public the whole truth about the contents of what in the past has been a package too often sold only because of the bright colors on its wrapper. Fourth, we must by law maintain the principle that banks are a definite benefit to the individual community. That is why a concentration of all banking resources and all banking control in one spot or in a few hands is contrary to a sound public policy. We want strong and stable banks, and at the same time each community must be enabled to keep control of its own money within its own borders. MOTOR TRUCKS I come now to another problem of the moment over which unfortunately the State can have little control. For many generations the greatest of common carriers, the railroads, have formed the backbone of that form of wealth which seeks stable investment. Banks, insurance companies, charities, hospitals, churches, trust funds, all, rightly or wrongly, have placed confidence in the permanence of the underlying mortgages of the railroad. Many people of late have seen the serious effects of a nationwide depression on railroad traffic. The railroads are heavy sufferers, in addition, from a new competition by great trucks and buses on highways built by the State. In view of the fact that the taxes paid by the railroads have helped and are helping to build these highways and that the trucks and buses now use them almost taxfree, a better equalization of taxes is called for in all fairness. I shall ask in my budget message for a tax on heavy motor ve114 I II I I

Page  115 Thne Annual Message to the Legislature, 1932 hidles commensurate with their use of the costly highways of the State. Summing up, therefore, the present situation in so far as the State can give assistance to credit, to bank deposits, and to the strengthening of the general financial structure,, it is incumbent on us to do everything in our power to protect the present and to rebuild for the future along far sounder lines. UNEMPLOYMENT The actual present conditions of life which face at least over two millions of the citizens of our State compel a reiteration of the principle to which we are committed - that the people of the State of New York cannot allow any individuals within her borders to go unfed, unclothed, or unsheltered. From that fundamental springs all of the work of relief now in progress in the State. I report to you regretfully that the conditions of unemployment are as yet no better than those we faced during the recent special session of the Legislature. On the other hand, I report to you gladly that the measures which we adopted at that time for unemployment and distress relief are, with few exceptions, going forward in the right spirit and with measurable success. To the Temporary Emergency Relief Administration goes great credit for the businesslike and, at the same time, humane progress which under their leadership has been made in every county. To the great majority of local government units and to the hundreds of thousands of individual citizens who are giving money and services., must also go credit for coming forward unselfishly in this emergency. It is as yet too early to determine whether further relief on the part of the State will be a necessity. We all hope that the worst is past. Much can still be done by individual citizens through community effort. Examples such as already given by the city of Rochester can well be followed by other communities. In other words, Government and citizenry have combined to 115 r

Page  116 Thne Annual Message to the Legislature, 1932 meet the emergency. That does not mean that we can think only in terms of this winter. We must look ahead. POPULATION DISTRIBUTION A study of the past decade gives us at least one clue to the difficulties of today. It is a simple fact that by far the greater part of the present suffering, of the present inability on the part of hundreds of thousands to obtain any work and, therefore, to obtain food, clothing and lodging, lies in the larger communities of the State. A few of the smaller cities, because of low per capita wealth., need special assistance. But the fact remains that in the smaller cities and in the villages and the country districts, even though the shoe pinches in many households, the actual suffering and destitution are far less severe than in the big cities. In other words, we seem to have established that the distribution of population during recent years has got out of balance, and that there is a definite overpopulation of the larger communities in the sense that there are too many people in them to maintain a decent living for all. Great problems of distribution of the necessities of life are involved but we have sufficient studies to know that an immediate gain can occur if as many people as possible can return closer to the sources of agricultural food supply. This is not a mere "back to the farm"y movement. It is based on the fact that the pendulum has swung too far in the direction of the cities and that a readjustment must take place to restore the economic and the sociological balance. I am a great believer in the larger aspects of regional planning and, in my judgment, the time has come for this State to adopt a far-reaching policy of land utilization and of population distribution. Let me illustrate from two extremes. At one end of the scale we are actually solving the problem of the unprofitable farming operation conducted on land unsuited to agriculture. This land, representing perhaps twenty percent of the area of the State, will be gradually returned to its most profitable use - MENNOW

Page  117 Thne Annual Message to the Legislature,.1932 forestry, hunting or recreation. At the other extreme lie the industries in great metropolitan centers where land values, taxes and living costs are so high as to make the cost of production too high to compete with areas where the overhead is far lower. In between these two extremes lie tens of thousands of square miles and thousands of communities where agriculture may be made profitable enough to sustain life on a reasonable basis and where industries may with proper relationship to agriculture itself thrive more soundly than in the metropolitan areas. From many of the larger centers of population I receive appeals from families who, springing from an agricultural background, have tried the ups and downs of city life and who are now ready to exchange its uncertainties for the comparative assurance of a livelihood given by the smaller community. We cannot tell until we try to find out, how many urban families in this State would be glad to return to the smaller communities even with the full understanding that in so doing they would in all probability never become millionaires. To that end I ask that you confer with me, in order that I may lay befo 're you the studies made on this subject by an unofficial committee appointed by the Governor, and in order that we may try to work out a definite plan to restore a more normal population balance between the great cities and the rest of the State. From a consideration of the distribution of population it is a logical step to the problem of excessive local taxation and its cause - excessive cost of local government. LOCAL TAXES From every corner of the State arise justified complaints of the taxes on real property, whether the property consist of stores, of city homes or of farms. We hear few complaints in regard to State taxes because the State taxes are not on real estate, but are on intangibles such as stock exchange sales, incomes, gasoline sales, etc. After three long years during which I have tried in every part of the State to make people understand that real estate taxes have absolutely nothing to do with the State Government,.1 -17

Page  118 The Annual Message to the Legislature, 1932 the public is at last coming to realize that the increase in real estate taxes is due wholly to the increase in the cost of local and not State Government. These taxes on real estate are too high. I make that categorical assertion. By the same token I make the categorical assertion that the cost of Government is too high. The answer to the problem of excessive real estate taxation is reduction in the cost of local government. The answer does not lie in having the State Government collect general taxes and distribute these general taxes in the form of cash to the local communities for their local expenditures. That is unsound. Local government has in most communities been guilty of great waste and duplication, of unnecessary improvements, and of thoroughly unbusinesslike practices. For three successive years I have begged the Legislature of this State to appoint a commission to study the simplification of local government, but for three successive years the Legislature has done nothing. I have given up trying to persuade the Legislature to do this. I am having a complete study made by experts in the field, on my own initiative. I expect shortly to lay before your Honorable Bodies, facts, figures, and recommendations in regard to local government, as a result of this study, which will make clear the difficulties of the past and the present and will point out remedies sufficiently definite to give to this Legislature at least a point of beginning for definite reform. It is very satisfactory to me to know that the overwhelming majority of counties, cities, villages, improvement districts, and towns, within this State, are not only wholly solvent but are in the happy position of having mortgages on the future far below any statutory or even safe debt limit. There are, however, a few isolated instances of communities which have borrowed money beyond a reasonable limit, and I shall shortly send you a message asking for legislation to prevent a recurrence of this practice. It is safe to say that these exceptions to the general rule are so few as to be almost negligible, but I am so proud of the economic soundness of Government in this State that I seek a condition where 118 owl

Page  119 Thne Annual Message to the Legislature, 1932 every unit of local government will be financially above reproach.. (Here followed a statement on State finances.) STATE LAND POLICY AND REFORESTATION Distinct progress is being made by the State in carrying out its State land survey. It has completed two years of work and has made a soil survey of the entire county of Tompkins and parts of the counties of Steuben, Orleans, Rensselaer, Broome, Monroe, Genesee, Nassau, Suffolk, Cayuga and St. Lawrence. The Legislature during the past two years has provided the necessary funds for this work, and I shall again recommend to your Honorable Bodies a further appropriation to carry it on. The survey has already been directed into channels which will provide the basis for future State planning dependent for complete efficacy upon accurate knowledge of land conditions. This survey is already formulating plans for future public service and public utility development and road construction for some of those regions which it has determined to be so adapted to agriculture as to justify the conclusion that they will continue to be used for farming. When the study is entirely completed, accurate data will be at hand to indicate definitely which lands of the State can profitably be continued in cultivation, which lands of the State should be devoted to reforestation, and which lands of the State should be used for industrial purposes. I look forward to the time when this information will provide the basis for planning future State and local developments dependent upon the proper and economic settling of population - for example, the location and kind of roads to be built through the rural areas of the State., the establishment of additional school facilities, the laying out and planning of electric and telephone services. This will provide the highest maximum efficiency in planning farm-to-market roads, rural electrification and telephones, and scientific allocation of school facilities, as well as a more scientifically coordinated system of assessment of rural lands. I119

Page  120 Thne Annual Message to the Legislature, 1932 As a part of this land utilization program, the people of the State have adopted the so-called reforestation amendment providing for annual appropriations of money for the purchase and reforestation of over one million acres of land better suited for forestry than for agriculture. This amendment was overwhelmingly approved by the people last fall, and provision is being made in my budget to carry out the mandate of the electorate along these lines. The reforestation program should be carried out in conjunction with the land survey, so that as little time as possible will be consumed in translating into proper State action the scientific information and data which will be furnished to us. The expenditure of money will almost immediately bring economic returns in prevention of waste. PRISONS The State is making good progress in carrying out the new and comprehensive prison policy. With current appropriations and those to be made by this Legislature and the next, we shall be in a position by the date set - 1935 - to eliminate the antiquated and unsanitary housing of prisoners which was such a disgrace to our modern society. The new Attica prison is already in partial use., the new medium security prison at Wallkill is under contract, and I am asking this year for the starting of two additional institutions - one to take care of mentally defective prisoners and the other to house the younger type of delinquents. Equally important has been the progress in the classification, segregation and paroling of prisoners, but the more we give intelligent administration to this problem, the more we find a definite need for changes in the present law dealing with first offenders and the length of their sentences. I incline more and more to the enactment of an indeterminate sentence law, the foundation of which will be the individual case rather than the application of definite terms and rules laid down by the Legislature and the courts. While the establishment of the Parole Board has given a more substantial justice, we must definitely follow this up with an extension of the system of probation and with 120A

Page  121 The Annual Message to the Legislature, 1932 adequate provision for indeterminate sentences. The Commission to Investigate Prison Administration and Construction will shortly make definite recommendations along these lines to your Honorable Bodies. ADMINISTRATION OF JUSTICE At last the State seems to be making progress toward the day when we can drastically improve our present administration of justice. After a long delay, which was wholly unnecessary, the Legislature last year provided for a commission, and this commission is at work with effective diligence. It has recognized that any important improvement in the administration of justice must come not through piecemeal tinkering with rules of procedure, but through a genuinely fundamental rearrangement of the structure of the administration of justice itself. This commission plans to submit a preliminary report this year and a year hence will ask for definite remedial measures. It seeks to bring the administration of justice into harmony with modern conditions, to simplify procedure, to cut the cost to the litigant, to eliminate useless functionaries, and even unnecessary courts, to the end that justice may be easier to obtain, quicker to obtain, and cheaper to obtain. Its task covers both the criminal and the civil law, and I trust that an enlightened public opinion, not only of the Bench and Bar but especially of the great body of lay citizens, will encourage and support recommendations which, to those who are wedded to ancient precedents, may seem radical. OLD-AGE PENSION In January, 1929, I suggested an immediate study of the problem of the security of elderly people against want, and in 1930 a special legislative committee made a report and recommendations thereon. I had hoped that their recommendations would include a plan by which a contributory system would be set up in addition to taking care of our present old people. It was my thought that in this way the financial burden on localities and on the State would, while at first heavy, be greatly reduced over a period 121 ~, n __~ __,,~,; ~ 1111 1190"1"1" -

Page  122 Thne Annual Message to the Legislature, 1932 of years through the coming into operation of an annuity fund built up in large part by contributions made during the working years of the individual citizens. I regretted the omission of any recommendation along these lines and today we have what is in effect a straight old age pension system without contributions. Many complaints have come to me from localities regarding the operation of this system and calling attention to the increasing amounts which have to be raised through county budgets. I have requested of the department of social welfare a survey and checkup, in order to give assurance against excessive payments and especially to prevent the giving of aid to aged persons whose near relatives can and should take care of them without placing the burden on the county or on the State. It is of the utmost importance to prevent abuses of what was intended to be a great step toward the relief of those who, through no fault of their own, had come upon difficult times in their later years. I suggest, furthermore, that your Honorable Bodies give immediate study to the establishment of a contributory system in order in future years to relieve the increasing burden upon the county and State treasuries. You already have the necessary data. By so doing we shall not in any -way lessen the assistance given to the thousands of worthy cases; rather we shall encourage thrift and foresight among the younger citizens of the State.... (Here followed statements on reapportionment and redistricting.) WATER POWER The Power Authority, created last year, has made definite progress in the performance of the duties imposed upon it by law, not only in working out the respective rights and interests of the four parties principally concerned, namely, United States, Canada, Province of Ontario, and the State of New York, but also in a further study of the economic and engineering problems and in negotiation of contracts for power distribution. In conjunction with the mandate placed upon it by Section 5 of Chapter 77 2 of the Laws of 193 1, directing it to provide a rea1220

Page  123 Thne Annual Message to the Legislature, 1932 sonable share of the power to be generated on the St. Lawrence for the use of municipalities and other political subdivisions of the State now or hereafter authorized by law to engage in the distribution of electricity, I desire to recommend to your Honorable Bodies the adoption of a statute similar to the one which was proposed by me last year, but which failed of adoption, authorizing municipalities of the State to form public utility districts, with the consent of their voters, for the purpose, of generating, distributing and selling electricity. LABOR There still remain several reforms which I have urged in previous messages and which seem to me to be the very minimum which the laboring classes of our State are entitled to insist upon. These include: i. Extension of the workmen's compensation law to cover all occupational diseases. 2.The State regulation of fee-charging employment agencies. 3. The declaration by law that the labor of human beings is not a commodity. 4. The establishment for women and children of an advisory minimum fair wage board. I believe that if possible the laws relative to State contracts on all public work should be amended so as to insure, in so far as, is possible, the actual payment of legitimately earned wages to employees where contracts are defaulted..I believe also that the law passed in 1930 abolishing ex-parte injunctions in labor disputes should be extended to include the guaranteeing of a jury trial for persons accused of violating such injunctions.. 0 (Here followed a statement on election law changes.) In times of stress and emergency like these we should avoid two evil extremes. At one end is the school of thought which believes that American industry and American business can pull them123R W- I Im

Page  124 Thne Annual Message to the Legislature, 1932 selves out of the slough unaided by Government. Its optimism forbids what it calls governmental interference. Its confidence in the success of individual action rejects efforts on the part of the State and Nation to lead back to better times. Too many national leaders in business, finance and politics adhered to this view - and for too long a time. Fortunately, though tardily, their views have changed. Even if such a return, without the aid of united community effort, which we call the -State, were possible, it would have cost too much in human suffering and misery. At the other extreme is the pessimism which looks upon the future with fear. It despairs not only of American business and industry but dares despair even of American Government and American character. To these timid souls the threat of a different social idea can always present itself as perpetually imminent. Where shall we ourselves be? We should not seek in any way to destroy or tear down, except in order to replace unsound materials with new. The American system of economics and Government is everlasting. Rather should we seek to eliminate those methods which have proved mistaken, and to apply to business and to Government, principles in which the rights of the average citizen are given a higher spiritual value. The times and the present needs call for a leadership which insists on the permanence of our fundamental institutions and at the same time demands that by governmental and community effort our business and industry be nourished and encouraged back to a basis made more sound and more firm by the lessons of the experience through which we are passing. Let us not seek merely to restore. Let us restore and at the same time remodel. To those millions who now starve we owe a duty as sacred as to those thousands who died in France - to see to it that this shall not come again. This is the duty of all of us -leaders in business, finance, agriculture, labor and government. The mistakes of the past among men and among Nations, the effects of which now beset us, call for leadership broad enough to understand the problems not only of our Nation but of their I124 mmmmr

Page  125 Thne Annual Message to the Legislature, 1932 relationship to other Nations, the problems not of New York alone but of all the other forty-seven States, the problems not of the cities alone but of the small communities and rural districts as well - a leadership practical, sound, courageous and alert. Let us, you and 1, dedicate ourselves here and now to a fulfillment of this objective. Let us by our example-show to the people of the State our complete confidence in the future of our commonwealth and our Nation. We know that the tragedies of the present will help in the rebuilding on a sounder basis for the days to come. 125............

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Page  127 III Agriculture, Farm Relief and Reduction of Rural Taxes INTRODUCTORY NOTE: DURING the campaign of 1928 I had stated in general my plans for the relief of agriculture in the State of New York (see particularly Item 3). In my Acceptance Speech for the first nomination for the Governorship (see Item i, this volume), in my first Inaugural Address (see Item 13, this volume), and in my first Annual Message to the Legislature (see Item 14, this volume) I also discussed the many aspects of this subject. Even before I was inaugurated as Governor, I appointed an Agricultural Advisory Commission to formulate a program for the relief of farmers in the State of New York. In most respects a farm relief program for an individual State must perforce be a limited one, for an adequate farm program must disregard State boundaries and deal in national terms. Not only is there the factor of competition from the farms of other States, but the whole agricultural problem is so tied in with the activities of every group of the Nation's population and of every section of the country, and is so closely bound up with such Federal matters as the tariff, the currency, and foreign trade, that treatment by any one State alone must necessarily be inadequate. In New York State the major local problem of farmers and rural dwellers generally was the burden of taxation which had been placed upon them over the years. The first recommendations, therefore, of the Agricultural Advisory Commission had to do with reduction in the rural tax burden for highways, bridges and schools. Other local agricultural matters, however, such as farm-tomarket roads, farm management, soil research and soil surveys, cooperative marketing, agricultural research, testing of herds, 127

Page  128 Note: Agriculture, Farm Relief, Rural Taxes specific crop diseases, were also the subjects of legislative and administrative attention. This appears from the documents in this chapter and also from the portions of my Annual Messages for 1930, 1931, and 1932, dealing with these subjects (see Items 15, 17, and 18 of this volume) on pages 92, 105, and 1 19. The Agricultural Advisory Commission, on November 16, 1929, also took up with representatives of some of the larger power companies in the State the question of extension of electric service to the rural areas. The Commission was seeking to bring about a more uniform rate for rural service, and to devise a standardized plan, under which the farmer would not be called upon to pay for any part of the line construction. On January 30., 1930, the Agricultural Advisory Commission reported some progress in its negotiations with the utility companies for extension of rural electricity. No real accomplishments in rural electrification were made, however, until after the establishment of the Rural Electrification Administration on May 11., 1935, during my first term as President (see Item 58 of Vol. IV). On April 28, 1930, I approved a bill to provide for a Rural Electrification Division in the Public Service Commission, indicating my hope that some day the benefits of electricity would be extended to the farm areas (see page 307 of the Public Papers of Governor Franklin D. Roosevelt., 1930). That hope was not realized, however, until the Federal program of rural electrification was developed. In the broader aspects of the agricultural problem the questions of soil utilization and submarginal land were also taken up in a practical way (see Chapter XVIII of this volume). During the campaign of 1932 for the Presidency., I discussed the problems of agriculture from the national viewpoint, referring incidentally to some of the things done in New York State (see Items 131, 135, 140 and 145 of this volume). In addition to the speeches and messages which are printed in this chapter with respect to this subject, I also delivered the following addresses and messages which could not be included here for lack of space, but which may be found in full in the volumes of my Public Papers as Governor for the years in question: Ad128 ýM

Page  129 Note: Agriculture, Farm Relief, Rural Taxes dress before Legislative Committees on Taxation and on Agriculture, Albany, N. Y., January 16, 1929, Public Papers of Governor Franklin D. Roosevelt (1929), page 683; Address at State Press Association, Syracuse, N. Y., February 1, 1929, Public Papers (1929), page 685; Radio Address, Albany, N. Y., March 7, 1929, Public Papers (1929), page 688; Approval memoranda, April o1, 1929, Public Papers (1929), page 274; Statement on farm relief laws, April o, 1929, Public Papers (1929), page 520; Address at State Fair, Syracuse, N. Y., August 29, 1929, Public Papers (1929), page 733; Address at Howe Caverns, N. Y., August 21, 1930, Public Papers (1930), page 750; Address at State Fair, Syracuse, N. Y., September 4, 1930, Public Papers (1930), page 756; Radio Address, Albany, N. Y., January 31, 1931, Public Papers (1931), page 701. 129

Page  130 mommisomw

Page  131 19 ({A Message to the Legislature on Rural Tax Relief (Excerpts). February 25, 19299 To the Legislature: O N JANUARY 28, 19299, I transmitted to your Honorable Bodies the first constitutional State budget and in that document I stated that by a supplemental message I would suggest changes in taxation. These changes are in my judgment made necessary b *ecause of certain inequalities in the tax burden under existing laws. For some time it has been increasingly evident that the laws covering the methods of paying for county highways in the State highway system bear very unequally and unjustly on the great majority of counties. This is because, regardless of property values, and regardless of density of population, the local contribution to building cost is fixed at a flat thirty-five percent rate. The result is that whereas in some counties the tax burden for this cost of completing the State system is less than one dollar per thousand dollars of equalized valuation, in other counties it is over forty dollars per thousand dollars of such valuation. The counties principally discriminated against are those whose lack of economic prosperity forms a matter of grave concern to all citizens whether they be residents of city or of rural communities. We have reached a point in modern civilization where we realize that a carefully planned highway system for the whole State is of direct benefit to the whole State and is no longer a matter of mere local interest. We understand the value of such a system for pleasure and recreational purposes and we have come,also to know the value of concrete roads for the purpose of the direct distribution of milk, vegetables, farm products, raw materials, and manufactured articles. The large cities of the State are more and more dependent on the statewide highway system. It is obvious that unless we impose a higher burden directly on the wealthier counties the only way to relieve the present inI131

Page  132 A Message on Rural Tax Relief equality is for the State to take over a greater share of the cost of highway building and maintenance. It seems to me that it is time to recognize the principle that the burden should be based primarily on the true value of the taxable property per mile of highway. Accordingly, the proposed legislation which accompanies the supplemental budget proposes three measures of relief, as follows: 1. Equalization of contributions to highway building by counties, by a requirement of not to exceed one-fourth of one percent per one thousand dollars of equalized value per mile of highway, nor in any event more than the existing requirement of thirty-five percent of the highway cost. This proposal is made to apply also to bridge construction. The additional cost to the State next year under this plan would be four million dollars. No county would be called on for a greater contribution than under the present law and most counties would receive a substantial reduction. 2. It is suggested that towns and incorporated villages be relieved from the present requirement of contribution for maintenance of State and county highways. This would add six hundred thousand dollars to the obligation of the State. 3. The present State and county system will not adequately be rounded out without the construction of additional lateral roads and these roads should be built under a careful plan of State supervision. It is time for the State Government to cease making any further contributions from the State treasury to counties or other local governments unless the principle is firmly established that the State shall have the right and duty to approve and give general supervision to the actual expenditure within the localities. It is in the case of highways an extension by the State of the wise provision in the Federal law which gives to the United States Government the duty to designate the highway, approve the plans and check the expenditures in all Federal aid highway 132 IF'

Page  133 A Message on Rural Tax Relief projects. The proposed system of lateral roads should be planned with the utmost care so that it will become a component part of the existing system. Additional aid by the State to help the counties to carry this proposed system forward would cost four million two hundred thousand dollars the coming year. The above three proposals involve the expenditure of $8,8oo,ooo and the executive budget heretofore transmitted to you shows an estimated surplus of only $5,714,816.30. A sound business policy requires an estimated surplus of at least that amount and this is in line with the previous policy of the State. An additional tax is., therefore., necessary if the highway tax burden is to be equalized as I have proposed. With the advent of new forms of necessary governmental expenditure brought about by changes of modern civilization, new forms of revenue have also been devised. I believe that public opinion and political opinion is substantially agreed that a gasoline tax is the best solution of the problem. It is a tax already levied in 46 states ranging from a minimum of two cents to a maximum of five cents. It costs little to collect. Further it is a tax levied against the users of highways 'in proportion to benefits received; and in pursuance of a sound tax policy it should be used solely for road building and maintenance. In the last analysis the gasoline tax costs the automobile owner little. It is an investment by him in good roads. His automobile lasts longer, the cost of operation is less, the tires will travel many more miles and the repair bills on his automobile will be very considerably smaller..0* The justification of this tax being a charge against motorists according to benefits received, it necessarily follows that those using gasoline for industrial purposes, farm tractors and other machinery, airplanes and motor boats, etc., should be rebated in full for all taxes paid on gasoline so used. This is provided in the proposed bill. I am recommending that the proposed gasoline tax go into

Page  134 On Rural Schools and School Taxes effect June 1," 1929, and I do this because the tax receipts accruing during June will not be physically received by the State treasury until July. This gives to the budget figures an apparent SUM Of $2,ooo,ooo over and above the $22,000,000 estimated for the fiscal year, but I believe it is good business practice to have actual cash coming into the treasury before actual expenditures start to go out.... 2 0 ( A Message to the Legislature on Rural Schools and School Taxes (Excerpts). March 4, 1929 To the Legislature: I AM convinced, after an exhaustive study of the rural situation, that it is necessary to relieve the rural school districts by decreasing the tax burden now borne by rural taxpayers, principally farmers, through increased State aid to such rural districts.... The constitutional mandate that the State shall "provide for the maintenance and support of a system. of free common schools wherein all the children of this state may be educated" fixes responsibility on the State and implies that equality of educational opportunity shall be afforded the boys and girls of the State, wherever they may reside. That condition does not exist at the present time. Many school districts are too poor to maintain a school of an acceptable standard unless the tax is made prohibitive. It has been proposed, and the bills are now pending before the Legislature, to extend the equalization quota., which under the present law stops with the five-teacher school, to the schools employing four, three and two teachers, respectively, thus giving to such additional schools all of the benefits of the equalization quota. It is estimated that this will cost the state approximately $1,000,1000. With respect to one-teacher, one-room school districts, it has 134A

Page  135 At an Annual Farm Dinner been proposed that the State shall give to the one-teacher schools $1,500 each, less the amount of a tax of $4.00 per thousand of actual valuation. This would cost the State approximately $3,250,000, which, together with the other appropriations, would deplete the balance of the budget to such an extent as to render it unsafe and inadvisable for the present year to give the full proposed State aid to such schools. Moreover, there are hundreds of school districts now spending less than $1,2oo per year in maintaining the schools. Some are spending less than $1,ooo. I question the advisability of suddenly saying to each such district: "Hereafter you may maintain a $1,500 school with a tax rate no higher than $4.00 per thousand, based on the full value of your taxable property." The purpose of this plan is twofold. It is designed to equalize the school tax burden and thereby grant a large measure of tax relief to poor rural districts. It is also intended to raise the standard of education in rural schools. The standard cannot be raised overnight. To do that will require time. The mere dumping of more money into a school district will not in and of itself raise the standard of education in that district.... The substantial benefits to the rural communities in case these proposals are carried out should result advantageously to the State at large and will tend very materially to equalize the school tax load, relieve the burdens now existing in the rural communities, assure to the children in such districts equality of educational opportunity and thereby carry out the evident purpose of the Constitution... 21 (Address at an Annual Farm Dinner (Excerpts), Syracuse, N. Y. August 28, 1929 (Future of farming in State of New York - Land use - Interdependence of farmer and city dweller.) I WILL not recite to you the steps which, at the suggestion of the Governor's Agricultural Advisory Commission, have already been I35 III I im ul r l ---

Page  136 At an Annual Farm Dinner taken to relieve farmers of some of the unjust tax burdens, or other steps which might be called emergencies to equalize the burdens more satisfactorily. The ultimate goal is, socially and economically, briefly stated. It is to arrive at the day when the average farmer in this State will be assured of as good living conditions and as much earning power in the average year as the skilled mechanic or small business man in the cities of the State. I want tonight to discuss an economic trend which I believe to be on the way and which is sound, both from the point of view of geography and the point of view of economics. It is perfectly true that this is one great Nation in which we live, yet we are apt to look at some of the economic features of our life too little from the regional viewpoint. Let me cite an example of what I mean. The six million people in the City of New York are the daily users of hundreds of thousands of quarts of milk and cream. Modern medical science requires that that milk and cream be pure and free from dangerous bacteria from the moment of their production to the momlent of their consumption by the man, woman or child in the city. That requires inspection by the city health authorities of the source of supply, i.e., the individual farms where the milk and cream are produced. Two years ago the Health Commissioner of New York City adopted the very wise and practical business policy of confining the area to which his inspectors could go to points within a reasonable distance of New York City, eliminating thereby costly and time-consuming visits to scattered individual farms through a dozen States of the Middle West. Thus was created what is known as the "New York Milk-shed." It includes the whole of the State of New York and a few nearby points in New Jersey, northern Pennsylvania and Vermont. The New York City inspectors thus have only a homogeneous, easilyreached district to cover and the cost of this governmental function has been put on a practical business basis. At the same time every effort is being made by the Dairymen's League and other cooperating agencies to bring the milk and 136

Page  137 At an Annual Farm Dinner cream production of this area up to the needs of New York City, and to keep the production up to the necessary maximum from year to year. This is sound economics for two reasons. It means that the elimination of western milk and cream will prevent extreme fluctuations in the cost of milk and cream to the individual user in New York City; it also means that farmers engaged in the production of milk will be assured of a definite market year in and year out. By the same token, it is good economics for the western farmer, for if the same practice is established in the cities of the Middle West, the western farmer, through proper cooperation, will build up the same kind of stabilized market in the cities of his own vicinity as exists in New York today. In addition to all of this, the consumer, both in the West and in the East, is assured of fresher and safer milk and the railroads can make great operating savings in having definite shipping schedules instead of fluctuating hit-or-miss methods that existed in transportation up to the time this splendid step was taken. What I am driving at is this. If the cities of New England, the city of Philadelphia, the city of Baltimore and other centers of the East could carry out the same method of the encouragement and maintenance of a local and nearby milk-shed, the dairy industry throughout the eastern states in a very few years could automatically be stabilized. Now, if this principle can be successfully applied to milk and cream, and I am glad to say other cities and states are following our lead, why in the name of common sense can it not be applied to other agricultural products which are locally used? If we can have a successful milk-shed, why should we not have a successful vegetable-shed? I do not of course refer to the out-of-season vegetables which have necessarily a nationwide distribution. For instance, in the Spring of the year thousands of carloads of vegetables come to northern and western cities from the South several weeks before those same vegetables can ripen in the North. I refer, i37 I I i-- - - - -

Page  138 At an Annual Farm Dinner of course, to the seasons in which vegetables come to maturity in our own individual localities. What., for instance, is the economic use in the spectacle in huge dump scows being towed down New York Harbor and out to sea for the purpose of throwing overboard dozens of carloads of cabbages which have come to the New York City market from the eastern and middle western States and in many cases the far western states, all arriving the same day and in such quantities that they could only be consumed, if the six million people in New York all decided to eat corned beef and cabbage three meals a day for a week. The growers of those unfortunate cabbages blame the commission merchants when they get no return and are out of pocket for the shipping charges, but the fault lies not with the commission merchants but with the lack of planning by the communities and the growers as a whole. The manufacturer of shoes or the producer of automobiles does not send a train-load lot of shoes or automobiles to the New York market or any other large city on consignment in the fond hope that he can sell them in forty-eight hours. Why should vegetable growers and vegetable dealers and the vegetable consuming public lay down another and different rule? The next practical step for us to take is to devise means by which, for example, the vegetable supply of the cities of New York State will be placed on a statewide basis. This can be arrived at only by cooperation between the city-dwelling public on the one side and the vegetable-growing farmers on the other. Permit me to offer another example. The same proposition applies to fruit. Nobody would expect us in the East to limit in any way the shipping of early peaches or grapes from the further South before our own fruit is ripe. Nevertheless, when our own fruit is ripe it is an economic waste for us to be bringing in fruit, of no better grade or quality, from other sections of the country. We all know the story of the Oregon apple. We must take off our hats to the energy and salesmanship of our friends in Oregon and Washington who have created a demand in our New York State cities for apples which have to be transported three thou-.138

Page  139 At an Annual Farm Dinner sand miles. The story of the success of the western apple is well known in every eastern city in spite of the knowledge that we can., if we want to, raise equally fine and perhaps better tasting apples in our own orchards. One trouble is, of course, that too many thousands of farmers in the East continue to flood the local markets with inferior, under-sized, badly packed apples, with the result that the average retail merchant prefers to handle the product from the Pacific Coast, because the buying public wants something that looks good as well as tastes- good. If we could build up the same cooperative interest among the apple growers of the State of New York as we have succeeded in building up among the dairy farmers, we would soon be able to establish an apple-shed for the cities of our State. In all of this work of regional planning for the production and consumption of agricultural products, we need the same cooperation from business men as they are now giving to city and suburban planning. We need their study in conjunction with farmers of the physical and material needs of marketing. We need their interest in the building up of common-sense pride in the use of our own products. Over in New England the organization known as the New England Conference has already accomplished great things in teaching the average citizen to prefer to use the products of New England rather than to buy articles which are no better but which happen to be made in totally different sections of the country. I am confident that the theory of regional planning for theý more local use of all future situations is economically sound. It will result, in the long run, in a more stabilized price, in the prevention of overproduction, in the more permanent employment of labor, in the saving of transportation, duplication and waste, and in a better understanding between the city and farm populations. I look for the day when, throughout the length and breadth of the United States, zones will be established for the production and consumption of whatever the soil within that zone is best, 139

Page  140 At Cornell University fitted to raise and whatever the local demands of consumption require. Let us not forget that the prosperity of the country, both State and national, is dependent as much on the prosperity of the agricultural population as on the prosperity of the city dweller. If the farming population does not have sufficient producing power to buy new shoes, new clothes, new automobiles, the manufacturing centers must suffer. It is time for us, who are in business or in governmental positions, to regard this task as our own and to realize that the farm problem is not confined to wheat, corn and cotton. Much can still be done to equalize the burden of taxation, to meet the waste which undoubtedly exists in local government and to reduce other economic burdens such as the inequality of the tariff in its relation to the farmer. But in the final analysis, we need, more than anything else, a definite determination on the part of the business men, of the city dwellers and of the agricultural population to join hands in creating a permanent basis of production, transportation, sale and consumption in which the natural economic laws will take precedence. 22 ({Address at State College of Agriculture, Cornell University (Excerpts), Ithaca, N. Y. February 14, 1930 (Betterment of agricultural conditions - Proper land use - Rural education - Rural health.) I THINK we are all agreed that the year 1929 will go down in history as affording the greatest amount of substantial progress for the agricultural interests of the State in modern times. Because of a more general and whole-hearted cooperation on the part of all of the interests affected and because of definite governmental aid of all kinds through the State Administration and the Legislature, marked advance has been made along economic and social lines for the bettering of agricultural conditions. 140

Page  141 A t Cornell University This broad attitude of intelligent interest in agriculture continues and further important steps are being taken this year to round out what we may well call a full program. The time has come, however, to pause for a moment and ask ourselves the definite question: What is the objective of all of this interest and cooperation? Are we passing these new laws and spending all of this new money merely to correct existing conditions? In other words., is this a mere correctional policy or does it go much further? If it does go further, what is it aiming at? To answer this question it is necessary to give a very brief survey of the fundamental reasons for the relative decline- of agricultural prosperity in our State during the past decade. The first reason is the economic one. We have come to realize that many thousands of acres in this State have been cultivated at a loss., acres which are not under modern conditions suitable for agriculture. Second, we have used many thousands of acres of soil for growing crops unsuited to the particular soil. Third, we have allowed thoroughly antiquated marketing processes to continue without intelligent change to meet the economic growth of the cities. For instance, we have built up a marvelous system of State Highways, without providing either the feeders to those roads at one end or the market facilities at the other end. Finally, we have only just begun to reorganize the tax burden so as to eliminate its inequalities. The other reason for the past and present troubles is the social one. Modern civilization has brought wholly new methods of living. We must admit very definitely that one of the principal causes for the trek of thousands of people, especially the young people, from the farm to the city has been that the farms have been cut off from the amusements and interests which the urban communities provide. Modern inventions, such as the radio, telephone, and the automobile, are helping to correct a lop-sided situation, but we must take a more intelligent interest in the whole problem of making farm life more socially interesting as well as more financially profitable. That this can be done is evidenced by the actual cases of a growing group of individual fainI AI

Page  142 At Cornell University ilies who are worthy to be listed as master farmers. In the same category of social needs comes the development of educational facilities in the rural communities. Much has been done, yet we still have a long way to go to make all rural education come up to the standards which have been already set. Another definite problem of the future relates to the health of the rural communities. We are all distressed by the growing difficulty of obtaining adequate medical service and care. In many communities the actual cost of medical care is almost prohibitive and in many the medical facilities are themselves almost lacking. In the same way we are facing the problem of the country church. The old days of the local Dominie who could live with his family on a salary of $500 a year and where the general maintenance cost perhaps another $500 a year, have gone by. We are confronted definitely in most communities with a multiplicity of church buildings, a multiplicity of different sects and the unfortunate injection of the high cost of living into our religion. These are the outstanding economic and social causes of agricultural decline. And there is what might be called the supplementary reason that during these past years the urban and suburban communities have offered a better chance for industrial employment than ever before, and also a better chance to obtain social advantages.... There is necessarily a limit to the continuance of the migration from the country to the city, and I look in fact for a swing of the pendulum in the other direction. Things all point that way. Industrially the United States has made not only the greatest strides in history in this generation, but perhaps has come to the period when industrial expansion will slow up. In other words, many economists are seriously questioning whether we have not for the time being reached the saturation point of industrial production calling for a period of digestion for a number of years to come. No matter how anxious we may be to prevent any panic of thought over the unemployment situation at this time, we must nevertheless recognize the fact that there are more 142

Page  143 A t Cornell University people in the cities of the United States who are walking the streets looking for jobs than at any time within many years. The effect of this condition, for it is a condition and not a theory, is that there will be less opportunity for young people to go from the farm to the city in the next few years and find work awaiting them. By the same token many people from the cities will give more serious attention than in the past to the possibility of moving to the country. How happy is the family today located on a farm in New York State and able to say every day as they get up in the morning and as they go to bed at night., "We at least have no fear of starvation. We at least have no fear of losing our job. We may not be getting very rich, but at least we are able to go on with our lives without suffering and without drastic change."11 This great objective, that I have been speaking about,, aims at the great fundamental of making country life in every way as desirable as city life, an objective which will from the economic side make possible the earning of an adequate compensation and on the social side the enjoyment of all of the necessary advantages which exist today in the cities. All sorts of factors are involved: better roads, better markets, better schools, better health facilities, better churches, lower rates for electricity, lower rates for telephones. Let us keep the objective definitely before us as we work year after year on the individual problems leading to that objective. Perhaps great betterment can be obtained through the development of the idea of regional planning - a planning, for example, for every city in the State on the same principle which has already been applied to the milk supply for New York City. As an example of how the administration in Albany is seeking to develop better facilities throughout the whole State, I have just sent a letter to the Mayors and Health Officers of all the principal upstate cities asking them to come to Albany on March 11ith, for a conference looking toward the establishment of regional milksheds for the further elimination of the bootleg milk and cream which come into our State from. far distant points. 143O

Page  144 Improvement of Dirt Roads 2 3 4(A Message to the Legislature Recommending Experimentation in Improvement of Dirt Roads. March 25, 1930 To the Legislature: MANY people of the State feel that the methods of improving dirt roads have received but little study. In the case of the wider and more heavily traveled State roads much scientific progress has been made during the past twenty years, so that we are now able to build concrete roads whose life will be for a generation or more. In the case of dirt farm roads, however, because of the enormous mileage involved., the cost of concrete, even one strip wide, laid under standard State specifications with a solid sub-base of rock is practically prohibitive for the greater part of the mileage. It is possible that experimentation with other types of construction may furnish us with data which will be very helpful in solving the serious dirt road problem. It has been suggested by the Superintendent of Public Works that the Legislature authorize the expenditure by his department of $100oo,000 from the funds for maintenance already allocated in order that experiments may be made. It is further suggested that one of these experiments be made in each of the ten highway districts of the State., and each experimental strip in each district may again be subdivided into several different types of construction for purposes of comparison. I., therefore, submit this suggestion for your consideration in the belief that we may be able greatly to profit thereby in the years to come. No additional appropriation is involved. 144

Page  145 Agriculture, Farm Relief and Reduction of Rural Taxes 24 ([ Governor')s Statement, Outlining Accomplishments in Fulfillment of Program for Agriculture, Farm Relief and Reduction of Rural Taxes. April 24, 1930 BEFORE I assumed the office of Governor, I organized in November, 1928, the Agricultural Advisory Commission for the specific purpose of a cooperative study of the outstanding needs of the rural population of New York State. This Commission, nonpartisan in every aspect, has now completed its work so far as the two legislative sessions of the present administration are concerned, and I consider it advisable to draw the attention of the people of the State, particularly those toward whose requirements the work of the Commission was directed, to the accomplishments which have followed the CommissionsI s work. The first recommendations of the Commission were made available to the public on November 24, 1928, by Henry Morgenthau, Jr., the Commission's chairman. I feel that the most graphic means of presenting the results of its efforts in cooperation with the Legislature,, is to state, chronologically and in sequence., the recommendations made before I assumed office, together with the final result that has followed each individual recommendation. This record stands as follows: i. That the counties be relieved of their 35 percent contribution to the State for the construction of new highways. RESULT: This was accomplished in 1 929. 2. That the State assume the cost of removing snow from the State highways. RESULT: In 1930 the Legislature passed a bill authorizing the State to aid the counties for snow removal from State and county highways and requiring that such snow removal be accomplished at the joint expense of the State and county. This bill is now a law by my signature. 145

Page  146 Agriculture, Farm Relief and Reduction of Rural Taxes 3. That the State assume the cost of elimination of grade crossings. RESULT: In 1929 the counties' share of the cost of eliminating grade crossings was reduced from 10 percent to one percent. 4. That a readjustment be made for the distribution of moneys for so-called dirt roads under section i 01. RESULT: In 1930 the Legislature passed the Pratt Dirt Road Bill which will give the rural counties approximately double the amount of State money which they received heretofore. This bill is now a law by my signature. 5. That a gasoline tax measure be passed. RESULT: In 1929 a gasoline tax of two cents was put on the statute books of the State. Owners of farm tractors and stationary engines are refunded the tax paid for gasoline used. Twenty percent of the moneys received from the gasoline tax is given to the counties for construction of county highways. 6. That a study be made of the cost of local units of government. RESULT:- In spite of repeated requests and recommendations by me to the Legislature for a complete study of all phases of local government, it has refused to do anything. 7. That the State assume the minimum salary for rural school teachers. RESULT: In 1929 a rural school bill was passed equalizing the method of raising rural school taxes. This piece of legislation has meant more in the way of tax relief to the districts that needed it most than perhaps any other single piece of legislation. I feel that if the foregoing represented the whole work of the Commission., its members might well be proud of their achievements. It does not, however, represent the entire work of the Commission. In the Legislature just ended, an additional group 146

Page  147 Agriculture, Farm Relief and Reduction of Rural Taxes of the Commission's recommendations was passed and., by my signature, these measures also have been made law. These include the following: At the January 30, 1930, meeting of the Commission, the following recommendation wa's adopted: 1. That Governor Roosevelt be requested by the Commission to call as soon as possible a conference of Mayors and health officers of the cities of the State to give consideration to the establishment of such regulations governing the production and sale of milk and cream as will insure consumers the maximum health protection and will enable such cities to take advantage of nearby sources of supply. RESULT: The conference was held and as a result I have just signed an act entitled: "An act to amend the public health law in relation to the sanitary control and inspection of milk and cream., and making an appropriation for such purposes." (This appropriation is for $90,000.) At the January 30, 1930, meeting of my Commission, they recommended and adopted the following resolution: a. That in view of the serious emergency confronting the peach industry by the widespread injury of oriental peach moth and of the apple industry particularly in exports, from apple maggots and spray residue, we recommend that the budget item of "Investigation of moths and insects, services and expenses., $13,000" be increased to $25,000. RESULT: I have just signed, and it has become a law., an act entitled: "An act making an appropriation for investigation of certain moths and insects by the New York State Agricultural Experimental Station at Geneva." (This appropriation is for $37,000.) b. That in view of the depressed condition of the potato industry in New York and of new insects and diseases which have appeared, we recommend that additional work in research be 147 f

Page  148 Agriculture, Farm Relief and Reduction of Rural Taxes carried out by the College at Ithaca and the Geneva Experimental Station, and that special work on the control of insects or diseases affecting potatoes on Long Island be done by the College of Agriculture at Ithaca. RESULT: I have just signed an act making an appropriation for research, extension work and investigation by the New York State College of Agriculture at Cornell University, carrying a total appropriation Of $43,710. c. At the same meeting the Commission recommended and adopted a resolution which stated: "We recognize the fact that the economic aspects of agriculture are now of predominating significance, and despite the handicaps of grossly inadequate physical facilities, the Department of Agricultural Economics at the State College of Agriculture has been and is making outstanding contributions to the present day needs of agriculture, which it cannot continue without immediately improved physical facilities." RESULT: I have just signed an act entitled: "An act authorizing the construction of a building at Cornell University for agricultural economics, marketing and farm management, and making an appropriation therefor." (This bill carries an appropriation of $i oo,ooo.) d. At a meeting on February 2 1, 1929, the Commission approved the bills now before the Legislature which would provide additional State support for the county farm and home bureaus and junior extension work in the State. These bills failed of passage in the 19.29 Legislature. RESULT: I have just signed an act by the 1930 Legislature, and it is now a law, entitled: "An act to amend the county law, in relation to the State contributions toward the support of county farm and home bureaus, and junior extension work, and making an appropriation therefor." (This bill carries an appropriation Of $40,500.) 148A

Page  149 At an Annual Farm Dinner e. At a meeting of the Agricultural Commission at Ithaca on August 2, 1929, the Commission recommended and adopted the following resolution: That the State take immediate steps to survey the agricultural resources of New York in order to make plans for the most profitable use of each kind of land. RESULT: I have just signed, and it is now a law, an act entitled: "An act making an appropriation for a survey of agricultural resources of the State by the New York State College of Agriculture at Cornell University." (This bill carries an appropriation of $20,000.) I submit to the people of the State this record of accomplishment by my Agricultural Advisory Commission with a feeling of deep personal satisfaction in their work, and I wish to extend to the individual men and women who served on the Commission my congratulations and thanks for having performed such worthy, devoted and constructive public service. 25 (Address at an Annual Farm Dinner (Excerpts), Syracuse, N. Y. September 3, 1930 (Farm relief program for the future.) AT THIS dinner the men who represent every known interest in agriculture in the State of New York, I want to express my own gratitude and that of the agricultural population of the State for the splendid teamwork and cooperation which you have given during the past year and a half to the best farm relief program of any State in the Union. What is even more important is that the greater part of this is no longer a program, but has been translated into actual fact and actual law.... As I see the next logical steps for us to take we must: 1. Strike out boldly to reduce the present exorbitant spread between what the farmer receives for his produce and what the 149

Page  150 At an Annual Farm Dinner consumer pays for that same produce. Let me give some concrete examples of what this spread amounts to at the present time. These figures were taken on August 20, 1930, and are approximately correct. The wholesale price in New York City for heavy, live fowls is from 20 to 23 cents, and the retail price is from 35r to 36 cents. This represents a spread of 65 percent between the wholesale and retail prices. The wholesale price of legs of country dressed veal is 16 to 17 cents a pound; the retail price is 3 2 to 33 cents a pound, or a spread Of 97 percent. The spread between the wholesale price of potatoes and the retail price is 47 percent. The spread between the wholesale and retail price of eggs is 41 percent. Now, it is interesting to note that in all of these cases, the spread between the wholesale price and the retail price in 1930 averages nearly double what it was in August, 1929. That is something for us to think about; it requires the best thought of all of us, city dwellers and farmers alike. But one thing is very certain, and that is that the farmers of the State of New York are neither profiteering nor getting rich on what they are receiving at this timeI or for a generation past, for their produce. Therefore, while we have done much and are doing still more through our highway systems, to bring farm produce to the urban markets, the next two definite steps are the working out of better terminal facilities in the cities and a wholly new system of city markets. These two essentials are the key of modern food distribution and it is time to put them both on an up-to-date business basis. 2. Hand in hand with city markets and terminal facilities goes one subject which relates more directly to the farmer himself, and that is the bettering of the existing grading of all kinds of farm produce. Why fool ourselves when we know definitely that in many lines of fruit and produce, other States are sending to market a more uniform and higher quality pack than we ourselves are doing? In regard to the existing milk situation in the State, there is also need for the definite truth to be known by every family that buys milk. I take it that no dairyman and no consumer objects to 150

Page  151 On Farm-to-Market Roads activities of Government authorities which aim to locate and stop profiteering in food of any kind, but it is also axiomatic that any activities of Government officials which force farmers to sell their products below the cost of production, and especially those which lessen public confidence in milk as a food, are wrong and do irreparable damage. If it is a fact that severe drought and other adverse conditions to our dairy farmers justify a rise in the price of milk to them, in order to enable them to make both ends meet, it is wrong for public authorities to try the case in the newspapers first and investigate afterwards. It is to the best interests of the farmer and of the consumer that the New York milk-shed be maintained and encouraged. It is wholly right, however, that every effort be made to prevent retailers of milk from using a very small and absolutely essential emergency increase in the price to the farmer as an excuse for making an additional or an unconscionable profit for themselves. 2 6 (1A Message to the Legislature on Farm-toMarket Roads (Excerpts). January 20, 1932 To the Legislature: I PROPOSE to your Honorable Bodies a concrete plan which has the twofold purpose of bringing our agricultural products more quickly and more cheaply to the centers of consumption and at the same time of lending encouragement to many who now constitute the surplus of population in the cities to return to small communities or farms under conditions more favorable than in the past. This constitutes a step in State planning for the immediate future which can be put into operation this year without exceeding the appropriations recommended in the budget. I ask the diversion of a small part of the highway construction fund for the immediate construction of farm-to-market roads. Let me first summarize the highway situation in our State: 151

Page  152 On Farm-to-Market Roads The system of main roads is a source of justifiable pride to our citizens. The miles of wide, smooth highways and parkways over which motorists and trucks now roll with ease and safety provide rapid and convenient communication for long distance transportation and for recreational purposes. The construction and maintenance of these highways through the more popular and populous sections of the State is expensive. The rights of way, the permanence of the construction, and the maintenance for heavy traffic cost much; but our highways are worth what we have spent on them. We must continue to build them. State money invested in these highways is well spent and brings adequate return. There are now approximately twelve thousand miles of these State highways. This is, however, only a small fraction of the total length of all the other roads in the State which have been opened by counties and by towns during many generations and which comprise the secondary and tertiary system of highways. There are eighty-two thousand miles of these less expensive roads., and of these, twelve thousand miles have been already im proved by counties and towns. But this leaves about seventy thousand miles of so-called dirt roads which the farmers of our State must use in order to haul their supplies and get their products to market. Most of these dirt roads have served a most important function, not only to the farmer himself, but to the entire State. The facility with which the farmer transports his products from his farm either to railroad centers or to main arteries of truck transportation, is among the most important factors determining the cost of those products to the consumers in the cities and larger villages. It is obvious that vegetables, fruit or grain which can be trucked from the remote farm over dry hard roads to the market at all times of the year, can be sold more cheaply than if they have to be dragged through miles of mud or become marooned because of impassable roads. The improvement of these roads has been primarily a function of counties and towns. Counties and towns are carrying on this work in different parts of the State with varying intensity and I152

Page  153 On Farm-to-Market Roads varying efficiency. In some of the localities good work has been done; in many others, the work has been so wastefully done that there is very little to show for the money that is being spent year in and year out. Several years ago I requested that the Legislature allocate one hundred thousand dollars out of the highway funds, to be used by the Department of Public Works in experimental construction of rural market roads. With this money, experiments have been carried on by the department with plain gravel roads, field stone base roads, and combinations of these with various kinds of surface treatment. Careful cost accounts for each type have been kept and their respective degrees of endurance have been the subject of constant observations. As a result, the Department of Public Works now has adequate information as to the most economical basis for the construction of rural farm-to-market roads. In other words., the experiment has fully justified itself. I believe that as the next logical step the State should proceed, at its own expense and through its own Department of Public Works, to the construction of demonstration farm-to-market roads in each county of the State. In this way, not only would many miles of improved roads be made available to the farmers of the State., but the State would furnish a practical example to follow in place of the present haphazard road-building methods in many of the rural towns and counties, as well as a powerful influence toward introducing a new spirit of emulation in good rural road building in every section.... In order to conform to the new State policy of planning ahead, we must carefully guard against building any of these demonstration roads into territory which the State land utilization survey holds to be unfit for agricultural purposes. It would be folly to build one of these new roads to give an outlet to farms which will soon be abandoned for farming purposes. Therefore, I recommend that the location of the mileage to be improved be selected upon the suggestion of, or with the approval of, the State College of Agriculture at Cornell, which, in conjunction with the land survey now being conducted by it, and with 153,

Page  154 On Farm-to-Market Roads its sources of economic information, could select those stretches of roads which would best serve the purposes of demonstration and greatest usefulness. I further recommend that the number of miles to be built in any one county be based on the ratio of the total mileage in that county to the total mileage of rural roads within the State. I am advised that the cost of experimental roads of this type has ranged from three thousand six hundred and forty dollars per mile to eight thousand five hundred and eighty-two dollars per mile, and that a highly satisfactory type of rural road can be built not to exceed five thousand five hundred dollars per mile. This would provide a gravel or stone road in most cases with surface treatment applied after use for a year. It is my thought that the highway department of the State should be charged with the continued maintenance of these demonstration roads. At this average cost we should be able to provide the farmers of the State with an average of ten miles to the county or a total of six hundred and thirty-six miles. This program cannot possibly be construed as signifying an intention to take over from the counties and the towns the construction of rural roads. An average of ten miles to the county is practically nothing when compared with the thirteen hundred miles' average of rural roads in each county of the State. I therefore recommend to your Honorable Bodies that these initial steps be taken in the interest of helping the farmers of the State get their products to the markets of the State as quickly and as economically as possible, of encouraging people in the cities to return to the farms and small communities and of persuading city industries to consider locating in villages and towns. By adopting this program your Honorable Bodies will accomplish three objectives. First, you will initiate the first practical step toward taking out of the mud the New York State farmer who lives on a dirt road. Second, you will give to local taxpayers an opportunity to compare construction and maintenance costs,, and create in most communities a demand for better conducted town highway departments. Third, you will encourage 154

Page  155 Before the New York State Grange the return to small communities and farms of many hundreds of families who, under present economic conditions, regret that they ever moved to the cities, and the relocating of many small industries now operating in costly city surroundings. I regard this last as one of the most important factors in meeting the condition of unemployment in the great centers of population. No single panacea, in one year or in five years, will start all the wheels of all the factories turning again. Rather, we must seek out many basic reasons for our present situation, one of which is the present wholly unsound distribution of our population. Many steps to correct this unbalanced condition must be planned for and adopted. This step toward making the small communities and agricultural areas accessible to and from the larger centers is wise, far-sighted and wholly justified. 27 [ Address before the New York State Grange (Excerpts), Albany, N. Y. February 2, 1932 (Revival of world trade - Reciprocal trade agreements.) Worthy Master and Members of the New York State Grange: S.. I WISH to speak tonight about a more general problem, to discuss particularly means by which the products of American industry and of American farms can find a better outlet than they have now. The question of markets is today our most vital question. Without adequate markets industry is stifled and when industry is stifled the demand for farm products and the prices of farm products sink to levels that mean privation, hunger and dispossession. Without such markets an era of low prices and an army of unemployed will long be with us. There are two outlets for our products: the first, an increase of home consumption, and the second, the sale of more of our industrial and agricultural products to other Nations throughout the world. You, in the State of New York, whether you live on the farm 155

Page  156 Before the Newv York State Grange or work in the factory, are personally and deeply interested in the problem, not only of finding home markets, but of finding foreign markets. Volumes of technical phrases have been written and uttered, but it all comes down to this plain truth: The Nations of Europe, South America and the Far East are not buying our products of factory and farm for the very good reason that they have not the means to do the buying. International cash is gold or its equivalent, and they have not got the gold. For ten years, between 1920 and 1 930, we Americans helped these other Nations to buy our goods by lending them our own money to do the buying. We have stopped doing that now for good and obvious reasons. There was and is only one other way by which other Nations can buy our goods and that is by using the old-fashioned method of bartering or exchanging their goods for ours. Unfortunately, that is an impossibility for them because our Government, in its wisdom, put up a tariff fence so high that they could not use this old-fashioned method of exchange of goods. Furthermore, when our Smoot-Hawley Tariff Law went into effect three years ago, over the protest of thousands of our own business men and farmers, the foreign Nations, by way of retaliation, raised high tariff fences of their own. By way of parenthesis., I might add that our own tariff fence increased the cost to the farmer of manufactured articles used by him on his farm and in his household, while at the same time it did not prevent foreign competition with him in many lines of agricultural products. It is a simple fact that the farmers of America have been buying in a protected market and selling in a market open to the competition of the whole world. It is time for this Nation to use a little horse sense about the objective we seek and the results of our present tariff law. It is time for us to sit down with other Nations and say to them: "This tariff fence business, on our part and on yours, is preventing world trade. Let us see if we can work out reciprocal methods by which we can start the actual interchange of goods. We do.156r

Page  157 Credit Facilities for Crop Production not ask you to buy our goods for cash because we know you do not have the cash., but we do suggest that it would be good for us and for you if we could send to you each year a large volume of American products in exchange for your products. We recognize the fact that we can probably use many of your articles and at the same time we can start our own wheels of industry going in manufacturing the things you need and want - all with adequate safeguards for the American standards of labor."9 I have good reason to believe that many Nations which, like us., are suffering from stoppage of industry, will meet us half way and put all the cards on the table for the purpose of breaking an actual deadlock which has paralyzed world trade and thrown millions here and abroad out of useful work. Let me at the same time make it clear that a trade conference with the other Nations of the world does not and should not., by any stretch of the imagination, involve the United States in any participation in political controversies in Europe or elsewhere. Nor does it involve the renewal in any way of the problem of twelve years ago of American participation as a member of the League of Nations..00 28 4f Governor's Statement upon Approving Bills Providing Additional Credit Facilities for Crop Production. March 17, 1932 IT is a great satisfaction to me to be able to give my approval to this group of four bills whose purpose is to relieve. the pressing need of farmers in this State for additional credit facilities to finance their crop production activities. The four bills are the result of recommendations made to me by the Governor's Agricultural Advisory Commission on January twentieth of this year following a study of the acute credit situation resulting from the closing of many banks and 15r J7

Page  158 Credit Facilities for Crop Production a consequent lack of funds to meet seasonal needs. On that same date I addressed a message to the Legislature urging the early passage of legislation along the lines embodied in these bills. Of the four bills one will permit banks to purchase stock in agricultural credit corporations to discount farmers' notes and rediscount them with the Federal Intermediate Credit Bank; the second will permit the formation of agricultural credit corporations for the same purpose under the general corporation law; the third will permit the formation of cooperative credit corporations for the same purpose, and the fourth will permit existing cooperative organizations of producers to form similar credit corporations to accomplish the same end. I believe the enactment of this legislation will help very materially to remedy a situation that threatened to paralyze the farming industry in some sections of the State and to ruin many individual farmers. 158

Page  159 IV Public Water Power Development and Cheaper Electricity in the Home and on the. Farm INTRODUCTORY NOTE: THE SUBJECT of water power development was discussed by me in my 1928 Acceptance Speech and in various speeches during my first campaign for the Governorship (see Items 1 and 6 of this volume). It was also discussed in detail in my first Inaugural Address, and in my first Annual Message to the Legislature (see Items 13 and 14 of this volume, on pages 7 7 and 8 2). The speeches and messages contained in this chapter treat the question of the development of water power in greater detail. The subject matter of this chapter must be considered contemporaneously and in conjunction with the subject matter of Chapter VII, "Regulation of Utilities." The purposes of proper public power development and proper public utility regulation are the same; namely, to restore to the people effective control by them over modern electrical services which have become essentials in modern standards of living and to make certain an ample supply of these services at a reasonable price. During my four years as Governor, a definite pattern of policy was formulated with respect to power development and utility regulation which may be summarized as follows: i. Development of major water power resources by agencies of government as the inalienable possession of the people. 2. Marketing of the power from such public developments, if possible, through private agencies under contracts assuring the lowest possible electric rates based on actual cost of service. 3. Cost of service to include a fair return on money actually and prudently invested in plant and working capital, the fair re159

Page  160 Note: Water Power and Electricityý turn to be determined in terms of actual bond interest, plus actual dividends on preferred stock, plus from 6 percent to 8 percent on the remaining equity in the property. 4. Availability of public transmission and distribution as an alternative if the companies refused to make contracts on these terms. 5. Provision for municipal operation of electrical utilities as a means of reducing rates, if authorized by a referendum vote of the citizens. 6. Strengthening of regulation by restoring the original conception of the Public Service Commission as an administrative representative of the people rather than as a judicial body holding the balance between the public and the powerful monopolistic utility corporations. 7. Determination of rate bases on the basis of actual and proper cost in order to eliminate involved valuation proceedings which had served the companies as a means of thwarting effective regulation. 8. Regulation and supervision of holding companies. 9. Extension of rural electrification to every farm, through the elimination of differentials in rates and line construction charges tending to make the service more expensive in the country than in the city, on the principle of equal pay for equal service throughout the State. The development of this pattern will be seen from the papers in this chapter and in Chapter VII dealing with the regulation of utilities. My attempts in 19 29 to enact legislation for the public development of the water power of the State were unsuccessful (see Item 3o of this volume). In my Annual Message of January 1, 1930 (see Item 15 of this volume on page 9 1), I renewed my proposal. Finally, on January 13, 1 930, the deadlock was broken, and an agreement was reached with the Republican majority in the Legislature upon a bill providing for a commission to make a 1I 6n

Page  161 Note: Water Power and Electricity survey and to bring in by January 15, 193 1, the most practicable plan of development. This bill is described in my statement of January 14, 1930 (see Item 31 of this volume). The history of the conflict between those who believed that the development of water-generated electricity should be undertaken by private capital and those who believed in public development, as well as an outline of the bill itself, were given in my speech of January 18, 1930 (see Item 32 of this volume). The bill was finally passed, and was signed by me on March 29, 1930. On August 13, 1930, I appointed the members of the St. Lawrence Power Development Commission - Robert M. Haig, Chairman, Julius Henry Cohen, Frederick M. Davenport, Thomas F. Conway and Samuel L. Fuller. On August 30, 1930, they met with me at the site of the St. Lawrence project, and organized for work. On December 4, 1930, the Commission conferred in Washington with President Hoover, with representatives of the State Department, and with officials of the Federal Power Commission. On December 20, the Commission conferred with the Hydro-Electric Power Commission of Ontario. The discussion with President Hoover included the problem of cooperation between the Federal authorities and the New York agencies. At this conference the opinion was expressed by President Hoover that answers to specific questions could not be given until the problem had been developed further through negotiations between the United States and Canada. During my campaign for reelection in 1930, I kept the St. Lawrence development continually in the foreground as a major campaign issue (see, for example, Items 87 and 90 of this volume), pointing out that the St. Lawrence Power Development Commission was about to bring in a plan, and that the crucial test would have to be met in Albany in 193 1, to determine finally whether or not a plan for public development in the interest of the people, rather than private development for private interest, would prevail. I pointed out that even if a plan of public development were certain to be adopted in 193 1, it would still be dan6 1

Page  162 Note: Water Power and Electricity gerous to leave the carrying out of the plan to the party which had always opposed public development. The St. Lawrence Power Development Commission rendered its report on January 15, 1931, finding the project feasible from an engineering and financial point of view. In my special message to the Legislature, dated January 19, 1931 (see Item 33, this volume), I discussed and summarized the majority and minority reports of the Commission. I pointed out the extent to which they embodied the objectives for which I had been contending, particularly that in distribution of the power, first consideration should be given to securing the lowest possible rates for small users, and that something more effective than Public Service Commission regulation must be depended upon to assure such low rates. On March 2, 1931, a bill drafted by the majority of the Commission was introduced, the important principles of which were outlined in statements by me dated the same day and printed as Item 34 in this volume. After the bill had been passed by the Assembly, it was announced by the Republican leader of the Senate, Senator John Knight, that the bill would be amended so as to include the names of the power authority which was proposed to be set up by the statute, instead of leaving the appointments to the Governor. This led to the statement by me of April 2, 1931, printed as Item 35 of this volume, charging that this unacceptable amendment was deliberately proposed in order to kill the bill and postpone action for another year. The next day I announced my intention of appealing directly to the people by radio. During the next four days so many messages, telegrams and letters poured in upon the members of the Senate in support of the program of public development, that Senator Knight was forced to abandon his attempt to amend the bill, and it was passed on April 7, 1931, without amendment. I made the scheduled radio address (see Item 36 of this volume) April 7, 1931, but used the occasion to point out the 162

Page  163 Note: Water Power and Electricity force which public opinion may exert upon legislation, as exemplified by the events of those four days. On April 297, 1931, 1 signed the bill as Chapter 772 of the Laws of New York, 19 31.The bill created the Power Authority of the State of New York to improve the St. Lawrence River for commerce, navigation and hydro-electric purposes, under the definite policy declared in the law that the St. Lawrence River within the State's boundaries was a natural resource of the State, and that the bed and waters of the river and the power and power sites should always remain inalienable to the people of the State. It directed the Power Authority to develop power primarily in the interest of domestic and rural consumers, to make available such power at reasonable cost to municipalities authorized to engage in the distribution of electric current,, to negotiate contracts for the transmission of power in order to obtain the lowest possible rates for domestic and rural use, and, in the event of its inability to obtain such a contract, to report that fact to the Legislature, together with plans for the transmission of the power in some other way, including the actual building of transmission lines. The proposed contract was to include terms which would enable the initial rate to consumers to- be fixed in the contract and to be adjusted from time to time on the basis of true cost data. On May 6, 1931, the five trustees were appointed as follows: Frank P. Walsh, Chairman, Delos M. Cosgrove, Morris L. Cooke, James C. Bonbright, Fred J. Freestone. Mr. Leland Olds became Executive Secretary. The Power Authority immediately began technical studies covering in general the cost of transmitting and distributing St. Lawrence current, rural electrification with special reference to low-cost current, the coordination of St. Lawrence power with other sources of power throughout the State, and means of attracting industry to Northern New York to utilize the power at high-load factors. Between June, 193 1, and October, 193 1, the Power Authority, 1 63

Page  164 Note: Water Power and Electricity with such support as I could give it as Governor, made every effort to secure from the Federal Government recognition of the interests of the State of New York in the proposed treaty negotiations with Canada for the development of the St. Lawrence which were, according to reports and rumor, about to begin. It was anticipated early in 1929 that soon after President Hoover' s inauguration, negotiations between the United States and Canada for a St. Lawrence treaty would be resumed. Nothing was initiated, however, until 1 930, when the two Governments exchanged brief notes. Actual negotiations were not undertaken until November, 1930. A letter from me to President Hoover, dated June ii1, 193 1, suggesting the appointment of Delos M, Cosgrove, one of the members of the New York State Power Authority, as a member of the Treaty Commission, in order to represent the State of New York in the proposed treaty negotiations, received only formal acknowledgment by the President's secretary. A letter from the Power Authority to President Hoover, dated July 25, 1931, requesting a conference at which the respective rights and interests of the Federal Government and the State of New York might be considered, received a reply from the President that "an international agreement must be entered into between the United States and Canada before any steps can be taken in the matter you discuss." This attitude toward the efforts of New York to establish a cooperative arrangement under which the State's power project would go forward harmoniously with the Federal navigation undertaking was consistently maintained by the Federal Administration until the treaty with Canada was actually signed on July 18, 19329. The Power Authority repeatedly urged that the interests of the State of New York be recognized in connection with the negotiation of the treaty, in order to avoid conflict and confusion. The Power Authority pointed out that the Canadian Government had announced its intention of consulting the interested provinces of Canada in order to reach an understanding regarding the respective rights of the Dominion and the inter-164

Page  165 Note: Water Power and Electricity ested provinces prior to signing the treaty. Finally, the Secretary of State arranged for a conference at the Department of State with the Power Authority, at which the Power Authority presented several views in a memorandum. The Secretary of State, on November 3, 1931, made formal reply recognizing the desirability of cooperation between the representatives of the Federal Government and of the New York Power Authority; and stating his readiness to confer with the trustees and place them in contact with the technical agents of the Federal Government. He stated, however., that whatever the rights of the State of New York may be in respect to electric power must in the end depend upon the authority and permission of the Federal Government. On December 8., 193 1, a series of conferences between representatives of the State Department and the Power Authority commenced, which extended until June, 1932, when it became apparent to the Power Authority that the Federal Administration had no intention of arriving at any definitive understanding with New York State prior to the signing of the treaty. After many conferences with the State Department, and upon learning that a treaty between the United States and Canada was about to be signed without any arrangement between the Federal Administration and the State of New York., the trustees reported to me on July 8, 1932, on the status of the negotiations. Thereupon, the following day, July 9, 1932, I sent a telegram to President Hoover, printed in Item 38 of this volume, requesting a conference with him in order to reach an agreement with special reference to the respective shares of the cost of the entire project to be borne by the State and the Federal Government in order to make possible early submission of the treaty to the Senate. On July ioth President Hoover replied by telegram rejecting this proposal. This telegram is also included in Item 38 of this volume. This exchange of telegrams brought to a conclusion twelve months of effort on the part of my Administration as Governor to establish a basis of cooperation with the Federal Administration. 165m

Page  166 Note: Water Power and Electricity On July i8, 1932, a little over a week after the exchange of telegrams between President Hoover and myself, the St. Lawrence Treaty was signed. Meanwhile the Power Authority in an interim report to me, dated December 31, 1931, pointed out the difficulty it faced in trying to negotiate the contract for the disposition of St. Lawrence power, in view of the fact that there was one huge corporation in upper New York State which occupied a monopolistic advantage in bidding for distribution of the electricity. The Power Authority therefore recommended the enactment of bills permitting municipalities, with the consent of their citizens, to engage in the distribution of electricity. In a special message to the Legislature, dated February 15, 19320 (see Item 37 of this volume), I recommended the enactment of such legislation as a means of reducing electric rates as well as a means of providing distribution for St. Lawrence power and enabling the State more quickly to obtain all of the benefits of the development. See also my Annual Messages to the Legislature of 1931 and 1932 (Items 17 and 18 of this volume, pages io6, 122), for further discussion of water power development and cheap electricity. In addition to the documents printed in this chapter on the subject of development of water power, see also the following: Message to Legislature, March 26, 1929, Public Papers (1929), page 171; Statement on signing Development Commission Bill, March 29, 1930, Public Papers (1930), page 438. During my campaign for the Presidency in 1932, and particularly in my campaign addresses at Portland, Oregon, September 21 (see Item 1 38 of this volume), at Los Angeles, September 24, and at Milwaukee, September 29, I referred to the significance of the St. Lawrence project and stressed particularly the importance of having these great power developments - these 'yardsticks' as a means of insuring consumers, particularly small domestic and rural consumers, against excessive rates. For a statement of further developments in connection with the St. Lawrence Treaty, the reader is referred to Item 7 Of Vol. III

Page  167 29 9 (A Letter to Senator Robert F. Wagner on Diversion of Water from the Niagara River. February 9, 19299 Dear Senator Wagner: 3HAVE delayed answering your letter of February 2nd for several days because it brings up a matter very vital to the interests of the people of the State of New York. You ask me three specific questions in regard to the attitude of this State concerning the convention signed at Ottawa between representatives of the United States and the Government of Canada in relation to the diversion of water in the Niagara River above Niagara Falls. This convention is intended primarily to preserve the scenic beauty of Niagara Falls by preventing rapid erosion of the center of the crest of the Falls through erection of weirs or other structures in the bed of the river above the Falls on both the New York side and the Ontario side, thus diverting sufficient water to the wings of the Falls. This convention is the result of careful study made by the International Niagara Board. This Board worked out a plan under which an offer of the Hydro-Electric Power Commission of Ontario and the Niagara Falls Power Company, a private corporation of New York State, was recommended for acceptance. Under this offer the Ontario Commission and the New York private corporation agreed to build the necessary weirs and structures in the bed of the river and asked in return the use, for a period of seven years, during the six winter months of each year, of i o,ooo cubic feet per second of water on each side of the river. It is estimated that this 10o,000 cubic feet per second on the American side would enable the Niagara Falls Power Company to develop between 8o,ooo and 100, 1000 horse power. First of all I want to call your attention to the important fact that quite aside from the merits of this proposal the State of New York was in no way invited to participate in the discussions attending this proposal; to the second important fact that the pro

Page  168 Diversion of Water from the Niagara River posed weirs and structures would have to be erected on the bed of the Niagara River owned by the State of New York; and to the third important fact that use of the 10,000 cubic feet per second proposed to be withdrawn depends on the consent of the State of New York to that withdrawal and to the satisfying of the State of New York that if it is withdrawn the people of the State are to receive an adequate rental for this water. In regard to the three categorical questions you ask me, I beg to advise you as follows: (i) In pursuance of its long-standing policy, the State of New York requires that its consent is prerequisite before any disposition can be made of the additional 10o,ooo cubic feet per second of water made available for power development by the convention. (2o) In pursuance of the same policy of long standing the State of New York requires a charge for the use of such additional water, said charge or rental being determined in pursuance of the statutes of the State. (3) In your other question you ask whether the State accepts the proposal to have the work of preserving the Falls undertaken at private expense, and at the same time making available for private utilization by the Niagara Falls Power Company of the additional water to be diverted under the convention for a temporary period. A careful reading of the proposed convention discloses the fact that the letter of the Secretary of State transmitting the convention refers to a protocol to be agreed to between the United States and Canada. The protocol itself is appended to the convention and the protocol refers to the recommendations of the International Niagara Board. In other words, the three documents must be read together, and it becomes at once clear that the Treaty itself is essentially an agreement to carry out a specific plan heretofore adopted. If the State of New York offers no objection to the ratification of the Treaty by the Senate of the United States, the State may by inference be bound to the acceptance of the 168

Page  169 Diversion of Water from the Niagara River plan worked out between the International Niagara Board on the one side and the Ontario Power Commission and the Niagara Falls Power Company on the other. My easiest course, as Governor, would have been to ask you and your colleague in the United States Senate to oppose the ratification of the Treaty as strongly as possible on the ground that the Treaty ties the hands of the State of New York as to the methods by which the beautification and diversion can be arrived at, and forces the State to accept the offer of the Niagara Falls Power Company. I think that I can speak for the whole State in telling you that we want to cooperate with the Federal Government and the Congress of the United States in every way possible to aid in the preservation of the scenic beauty of Niagara Falls and the Niagara River. That is why instead of direct opposition to the ratification of the Treaty, I have tried, in a spirit of cooperation, to enter into a plan by which the scenic beauty of the Falls can be preserved and at the same time all of the rights of the people of the State of New York in and to their property and governmental powers can be equally retained. After a number of conferences, I am glad to say that I have been able to obtain from the Niagara Falls Power Company a written stipulation duly executed by it, which stipulation fully preserves the property rights and governmental authority of this State. I might note the following facts in regard to the Niagara Falls Power Company: i. It is the only private company now in a position immediately and economically to utilize the proposed experimental diversion of the additional 1o,ooo cubic feet per second of water. 2. The Niagara Falls Power Company has for a number of years been paying a rental to the State of New York for the water which it is now using. 3. The Niagara Falls Power Company has paid this rental to the State under protest. 169

Page  170 Diversion of Water from the Niagara River The stipulation signed by the Niagara Falls Power Company states that if it is allowed to use for seven years the additional water obtained from this experimental diversion, it will i. Withdraw all objections to the payment of the rental now being charged by the State for existing water, ~.Agree to pay such equitable rental for the additional experimental supply as may be determined by the State under the Water Power Act, and 3. Recognize the necessity of obtaining a license from the State for the use of this experimental water. This is a complete recognition of the right and sovereignty of the State of New York to license and rent all water now being used by the company and all water to be used under the provisions of the convention and protocol. It is, of course, clear that the proposed treaty with Canada is a temporary measure only, running for the diversion period of only seven years, and that the State of New York is in no way restricted as to its full control of this water after the seven-year period has run. The stipulation received by the State of New York clears up the matters long in dispute between it and the private company and makes it perfectly clear that the State has the full sovereignty and control over the water on the American side of the Niagara River for all time. I am very happy that the State by this stipulation obtains all that it has in the past claimed from the Niagara Falls Power Company as its rights at this particular site and that the State can contribute in a constructive way to the beautification of the Falls which is the primary object of this convention. It is obvious that though the factor of scenic beauty exists in this particular case it should not be considered in any way as modifying the policy of this State at other power sites in regard to the development of water power under direct State control and possession. The State reserves every right to make a different arrangement 170

Page  171 Water Power Resources of the St. Lawrence at the termination of the seven-year period should the diversion be made permanent or be increased. I hope that I have made my position clear in this matter. Sincerely yours, Hon. Robert F. Wagner, United States Senate, Washington, D. C. NO TE: The proposed Convention jected by the United States Senate and Protocol was subsequently re- Committee on Foreign Relations. 3 0 ({The Governor Proposes a Plan for the Development of the Water Power Resources of the St. Lawrence River. March 12, 1929 To the Legislature: F OR a generation the need for power for industrial and domestic purposes has been steadily increasing, and during this period the ownership by the people of the State of New York of a vast potential source of energy in their portion of the waters of the St. Lawrence River has received increasing public attention. In the past the actual necessity for the development of this potential energy has not been wholly clear but in more recent times the great preponderance of informed opinion recognizes the immediate need for action. The State owns or controls other much smaller water-power rights but it seems to me best at this time to focus recommendations and public attention on the development of the St. Lawrence River. In making use of this potential energy on the St. Lawrence owned by the people of the State, the objective of the problem is essentially this: I. The physical transforming of falling water into electrical current.

Page  172 Water Power Resources of the St. Lawrence 2. The transmission and distribution of this current from the plant where it is developed to the industries and homes of the people of the State. As this St. Lawrence power source is the property of the people of the State, we can, I think, all agree to the principle that the actual energy therefrom should be, for all time, under the immediate control of the people of the State and should be transmitted and distributed to the people of the State at the lowest practical cost. Let me briefly develop these underlying principles. In the manner of the actual development of the St. Lawrence power, it is not enough that the ultimate title vest in the State. I hope there will be no difficulty in securing agreement that not only title but physical possession of the development should at all times be in direct representatives of the people. At least of equal importance is the problem of transmission and distribution to the ultimate consumer. A mere development of power at a low production cost is insufficient unless, at the same time, we make certain that it is finally distributed to the ultimate consumer at a fair price, under which no individual or corporation., involved in the business of transmitting or distributing., will make more than a reasonable profit. Right there we are confronted with a double difficulty. First arises the question of who should do the transmitting and distributing of the power actually generated by representatives of the people of the State. I follow, I think, the opinion of my distinguished predecessor in saying that because of the complications involved, the actual operation of a transmission or a distribution system in this field of activity should, if possible with safety to the people, be undertaken by private enterprise, and that the State should undertake it only if private enterprise proves that it cannot., or will not., successfully carry out the task. In regard to the second point involving the actual rates to be charged to consumers., we are confronted with what many believe to be ineffectiveness of the present rate-regulating powers of the 1P729

Page  173 Water Power Resources of the St. Lawrence Public Service Commission. When this Commission was first created, about twenty-five years ago, the basic purpose was to provide fair rates based on fair return to private capital. It was recognized then that private capital entering the public utility field would be distinguished from private capital entering wholly private fields of industry, in that the profit to a public utility company would be limited, and sums earned over and above a fair return., would be passed back to the consumer in the form of lower rates. Since that time a series of court decisions, especially in the Federal Courts, has to a large extent nullified the protection originally intended for the consumer. Originally it was intended that fair earnings should be limited to the actual cash capital invested, but today it is notorious that because of court rulings involving replacement value, "going value," so-called good-will, return on capital, and allowances for surplus, there have been made legally possible investment returns as high as fifty percent or even one hundred percent annually on the original investment. That is why in trying to treat this whole problem of development., transmission and distribution of St. Lawrence power as a complete picture in the interests of the people of the State, I have sought a method by which we could avoid the rate-regulating power of the Public Service Commission, tied up as it is at the present time by Federal Court rulings. I have, therefore, after consultation with many experts on the subject, come to the conclusion that the representatives or trustees who develop the power can enter into contracts with transmitting and distributing companies, under which a fair price to the consumer will be guaranteed, this price to make allowances only for a fair return to the companies on the actual capital invested in the transmitting and distributing of this particular power energy. It is a method which is frankly based on the theory of contract rather than the theory of regulation. To meet this problem the Federal Power Commission has made special rules for setting up capital investment, limited wholly to actual cash, less property deduction for obsolescence, depreciation '73R

Page  174 Water Power Resources of the St. Lawrence and the like. But in the Federal Government these rules are valuable in practice only in case the Government wishes to recapture a plant built under license from the Board. There is, however, no reason why the State of New York should not apply the principle of such rules for the purpose of making contracts for the transmission and distribution of its power. Those who have thoughtfully considered the matter see but one way to protect the consumer and to prevent the exploitation of our water power again: that is, by applying the principle of making the right to have power from the power station depend absolutely on a fixed maximum return on actual investment, with books kept in accordance with rules fixed and agreed upon in advance. This is one of the methods proposed in the House of Representatives for dealing with the Boulder Dam project. It is neither Republican nor Democratic in principle. It is just a sound business method used in the public interest. I want to reiterate that the St. Lawrence problem involves not only the actual development of the site or sites, but must be thought through to the legitimate end of guaranteeing to the consumer, after the power has been transmitted and is ready for distribution, a final price based only on a fair return on actual investment. Now, as to machinery. I have spent many hours and many days in a study of the mechanics of the problem. I am very certain that we have today in existence sufficient data and facts to justify the elimination of any further study as to mere physical feasibility. I have gone over volumes of carefully gathered information, including a comprehensive physical survey of the suggested site or sites on the St. Lawrence River made by the Frontier Power Company. Everything points to the practicability of building a dam. Furthermore, it is my judgment that no insuperable difficulty lies in the relationship between the State of New York on the one side and the United States Government or the Canadian Government on the other side. To appoint a mere commission to make inquiries would get us nowhere, unless we create a body with authority to make, subject to the approval of 174.I I

Page  175 Water Power Resources of the St. Lawrence the Legislature, definite agreements on the basis of a definite, carefully worked out plan. In the same way a mere investigating body could get nowhere with conversations with the representatives of private capital in regard to transmission and distribution of power, whereas a body clothed with authority to negotiate with transmitters, distributors,, and bankers, on the basis of a comprehensive and definite plan, stands an excellent chance of accomplishing results. I propose, therefore, the creation of a body of five representative citizens, regardless of political considerations, to be known as the Trustees of the Water Power Resources on the St. Lawrence River. It is my thought that these trustees should be composed of men in whom there is great public confidence, such as former Governor Charles Evans Hughes, and former Governor Alfred E. Smith. In its inception these trustees would constitute a planning and negotiating commission, and would be charged with the duty of reporting a definite plan and a specific contract for the approval of the Legislature, on January 15, 1930. Before such a plan could go into effect it would require legislative approval. If and when approved, by the Legislature, the trustees would automatically be charged with the duty of carrying the plan into effect. These trustees would examine into the engineering phases of the problem and bring in figures as to the practicability and the cost, and would, of course, secure the aid of the best impartial experts available. They would confer with the various Federal authorities, with the International joint Commission, and through proper constitutional channels with the Government of Canada and its provinces for the purpose of advising the Legislature what definite steps should be taken by treaty, Federal legislation, or otherwise, to secure complete cooperation. They would confer with representatives of existing or prospective distributors of electric power for the purpose of arranging by contract for the sale of St. Lawrence power to the ultimate consumer after allowing a fair and reasonable return on actual capital investment.

Page  176 Water Power Resources of the St. Lawrence In other words., I propose that the Trustees should bring in a complete plan for the development of the State's water power resources on the St. Lawrence and that this plan should conform to a definite statement of two basic principles which I believe to be the policy desired by a great majority of our citizens. These two basic principles are: i. The natural water power sites on the St. Lawrence now owned by the people of the State or hereafter to be recovered, shall remain forever inalienable to the people, and any dams or plants necessary to generate power shall be built, financed, owned, operated, and occupied by the trustees, as the duly constituted instrumentality of the State. 2. Power developed therefrom shall be transmitted and distributed, if possible, through the employment of private capital so as to secure adequate distribution throughout the State. This distribution, however., shall secure the lowest rates to consumers compatible with a fair and reasonable return on actual cash investment. The rates, in other words, shall be based on actual cash outlay - that is to say, operating expenses, capital outlay representing money actually spent in plant investment, and working capital - with reasonable allowance for obsolescence and depreciation., and a return on the investment not exceeding the interest actually paid on borrowed money and dividend rates not in excess of current rates on preferred stock, and not to exceed 8 percent on all other cash capital. In other words, the power generated by the agency of the State, called the Trustees, shall be sold only on a contract basis which will take into definite consideration all the steps between the sale at the power house and the ultimate sale to the home owner or industrial establishment. I want to see something done. I want it done in accordance with sound public policy. I want hydro-electric power developed on the St. Lawrence, but I want the consumers to get the benefit of it when it is developed. They must not be left for their sole pro1 76A

Page  177 Water Power Resources of the St. Lawrence tection to existing methods of rate-making by the Public Service Commission. Are the business men of this State willing to transmit and distribute this latent water power on a fair return on their investment? If they are satisfied, here is their opportunity. If not, then the State may have to go into the transmission business itself. It cannot on the one hand let this power go to waste,, nor on the other be required to yield to anyone who would aim to exploit the State's resources for inordinate profit. We shall soon know whether or not such a contract can be made. If the Trustees can make it and it commends itself to the people of the State, then the Legislature and I will approve it and we can go ahead. But, if no such contract can be made we shall know the reasons why and protect ourselves accordingly. I want to be in accord with sound business principles. I believe there are enough good business men in this State who see this problem as clearly as I do and will be glad to join with the State in this endeavor. I want to give to business this big opportunity to participate in a public service. If these proposals become law we shall have the opportunity of ascertaining whether or not business and finance will accept this way of developing the State's resources for its industries, its commerce, and its homes. On the one hand is the policy of public ownership and control of our power sites, dams, and power plants, with private operation of transmission lines and distributing systems, allowing a fair return on actual cash capital investment. On the other side is one of two courses - either exploitation by private interests or else public ownership and operation not only of the site, the dam,, and the power, but of the transmission lines and distribution systems as well. Instead of asking an individual member of the Senate or the Assembly to introduce definite legislation in accordance with this message, I am appending hereto a suggested Act carrying out the principles and the plan which I am advocating. I shall,, of course, be glad to confer with any of the members or committees of your Honorable Bodies in regard to what I conceive to be a matter of 1 7 7

Page  178 St. Lawrence Hydro-Electric Power the utmost importance to this State. I hope you will agree with me that this problem which has been so much discussed is now ripe for some form of definite action and that it is great enough to take it wholly away from the field of partisan politics. 31 (f The Governor Hails the Agreement on a Bill Creating a Commission to Prepare Plan for Development of St. Lawrence Hydro-Electric Power. January 14, 1930 1 HOPE and believe that yesterday will go down into the history of our State as a red letter day. The Water Power bill introduced in the Legislature, while requiring certain changes to clarify it, is of such outstanding importance that every man, woman and child in the State who uses electricity has cause to rejoice. The bill ends a controversy over a great principle which began more than twenty years ago and has been acutely argued during each one of the past ten years. The bill introduced last night is of far greater importance than merely the removal of this great subject from the field of temporary politics., for it represents a definite approval of what the majority of people in this State have been striving for regardless of party lines - a sincere effort on the part of the State to develop, through a State agency, the great electric power of the St. Lawrence River. On the one side a powerful group has insisted that the Stateowned water power to be developed by private corporations or leased to them for generations, relying for protection of the public consumers wholly on Public Service Commission regulation. On the other side what is, I believe, an overwhelming public sentiment has insisted that the State retain constant control of its great electric power resources, develop them, and sell the electricity by contract in such a way that the consuming public will be assured of cheap lighting and power..278"

Page  179 St. Lawrence Hydro-Electric Power The issue has been beclouded and befogged from time to time by efforts to magnify mere details and take away public interest by the cry of "politics,." and the seeking of partisan advantage. In spite of this, the big principle has remained the same and a deadlock has existed between what have been clearly and definitely two schools of thought. Now at last the deadlock is broken. Last night's bill is a definite recognition of the principle for which my school of thought has striven so long. I had asked for practical legislation on broad lines as follows: i. The creation of a Board of Trustees to bring in a plan. This is given by the bill with the change of the word "Trustees" to "Commissioners.",2. These Trustees (or Commissioners) to bring in a plan for development of the St. Lawrence by a State agency. This is directed by the bill. 3. The sale of electricity for consumers' use by the contract method. This is directed by the bill. 4. A report on this plan to the Legislature for approval or rejection. This is directed by the bill. 5. If accepted by the Legislature,, the creation of permanent Trustees to carry out the plan. This is completely set up by the bill. I am feeling very happy that the great principles involved are recognized by this proposed legislation and if it is passed by the Legislature I shall, of course, do everything in my power to further the practical working out of a plan based on the principles. Let me repeat that the furtherance of the fundamental principles involved marks the greatest step forward which has been taken by any State in the Union in the solution of the much controverted power problem. It will mark a wholly new phase of the task of providing electricity to the homes of the people at low rates.

Page  180 Thne St. Lawrence Power Fight 3:2 The Governor Discusses the History of the St. Lawrence Power Fight. Address before the State Bar Association. January i8, 1930 1 WANT to outline to you tonight a subject which, on its face, is not confined to the interest of the legal profession. You, however, with the other citizens of the State, have read of the proposal made a few days ago by legislative leaders which makes possible the termination of a ten-year deadlock on the subject of the development of State-owned water power. That the future of the great public utility known as electricity must be of some interest to the legal profession may be illustrated by an experience I had last year in seeking to find an appointee to the Public Service Commission from a certain district in this State. In evolving a list of names of approximately fifty lawyers of real standing in their profession in this district, I came, on investigation., to the discovery that every one of these gentlemen was in some shape, manner or form the legal representative of some utility company or some utility interest. I do not mention this as being derogatory to the fitness of lawyers as a whole to represent the public interests in this particular field, but merely as an illustration of the fact that the legal profession is very much concerned with the general problems of the development of utilities. It is interesting, also, that during the past five days I have discussed with at least one hundred people the new proposal for the development of the St. Lawrence power and only one of these individuals had even read the proposed law. All of the other ninety-nine had based their opinions either on the statements of political leaders or on the accounts which they had read in the public press. May I, therefore, present to you as a "brief" a short account of just what has happened in the past and just what is proposed for the future.

Page  181 Thne St. Lawrence Power Fight 1. THE HISTORY OF THE ST. LAWRENCE DEVELOPMENT More than twenty years ago., certain far-seeing gentlemen applied to the Legislature for a State franchise to develop the water power on the St. Lawrence River in what is known as the "International Section"ý at the Long Sault Rapids. That these gentlemen asked for a legislative charter was proof conclusive that the State has a very definite interest in the property. This charter was granted by the Legislature, but a few years later, with the growing knowledge of what the Legislature had given away without compensation to the State, another Legislature repealed the charter and every right that it conferred. For a number of years there was no open effort on the part of private companies or of the State to develop the latent water power of the St. Lawrence. Gradually, however, an issue was joined between two schools of economic and social thought, the one holding that the development of electricity should be undertaken wholly by private capital, the other holding that this great natural resource was of such tremendous importance to the future population of the State that its constant control should never pass from the hands of the State. The next step was the passage of a water power act by which certain State officials were given the right to lease the State power properties, and very soon an application was made by the Frontier Power Company for a lease of the St. Lawrence rights for a term of fifty years. This in itself seemed to be in the nature of a compromise offer by those who had hitherto been willing to have the State actually sell its rights. This school was willing to admit that the ultimate fee of the title should remain in the State., but at the same time insisted that the fee could be leased for long periods of time extending into the dim, distant future. As you all know, the effort to obtain this long-term lease was blocked by my predecessor not only on the technical ground that the lease actually proposed was illegal, but on the broader ground that it was contrary to a sound public policy. For a number of years the two schools of thought remained at i9i

Page  182 The St. Lawrence Power Fight complete loggerheads. One, represented by the Republican Party and Republican platforms, was willing to grant leases for all of the State's rights and properties for long periods, though admitting that the nominal ownership should rest in the State. The other school of thought, represented by the Democratic Party and its platforms, asked for the actual physical development of the electrical energy on the St. Lawrence through a State agency and the retaining of the physical manufacture of electricity, and possibly its transmission, in the hands of the State agency at all times. This was the situation when I took office a year ago. 2. THE PRESENT SITUATION The next step, and the one which has brought the question finally to a head, was the definite proposal of a law which I submitted in March to the Legislature of 1929. The principles of this plan can best be explained by comparing its purpose with the bill introduced last Monday in the Legislature of 1930. By so doing we can arrive at a wholly fair estimate of what the new legislative offer actually is. 3. THE BILL ITSELF 1. The title of the new bill is in itself important, for it is called, "An Act to declare the policy of the State in respect to its water power resources, and to provide for the appointment by the Governor of a commission." Please note that the title itself sets up a policy. 2. Section 1 of the bill is in very definite terms the enunciation of the policy called for by the title to the Act, and because it uses the identical language, word for word, with the language of my bill of 1929, I hope that every citizen of this State will read it. It is as follows: "The natural water power sites in, upon or adjacent to the St. Lawrence River, owned or controlled by the people, or which may hereafter be recovered by them or come within their ownership and control, shall remain inalienable to, and ownership and control shall remain always vested in the people." 182

Page  183 The St. Lawrence Power Fight It is a simple fact that this key clause has been incorporated in identical language, without the changing of a letter or a syllable, taken directly from my bill of last year. In this fact lies the justification for the simple, unequivocal statement that this new bill of 1930 is a complete conversion to my policy on the part of the legislative leaders, and is an acceptance of the principle for which I have fought so long. 3. The new bill in Section 2 directs the Governor to appoint five commissioners to bring in a plan or plans. It calls these five gentlemen "commissioners" instead of "trustees" as I had suggested, and removes the requirement of the consent of the Senate to their appointment. 4. The third section of the new bill covers the scope of the inquiry and is in purpose and language substantially similar to the corresponding part of last year's bill. This section has the addition of a new sentence which states that in the event that the commissioners determine that the development by the State, through a State agency, is not feasible or practicable, they shall determine whether an alternative for development or distribution of power would be more beneficial, and shall report such an alternative plan. It is, of course, obvious to any reasonable person that I could have no objection to this sentence, for, as a matter of fact, there was nothing to have prevented the commissioners, suggested under my plan last year, from stating perfectly frankly that they could not bring in a feasible State agency plan, or from suggesting an alternative plan or plans. 5. The fourth section of the new bill relates to a technical superseding of prior provisions of law and is identical in language with last year's bill. 6. The fifth section of the new bill is identical with my bill of last year, except that it appropriates $200,000 instead of $100,000. 7. The next four sections of the new bill are of the utmost importance because they bear directly on the declaration of policy in the first section of the bill. These last four sections constitute a tentative setting up of an instrumentality of the State, a body 183

Page  184 Thne St. Lawrence Power Fight corporate and politic to be known as the "Trustees of the Water Power Resources on the St. Lawrence River." In my bill the language set up this State agency immediately, but my bill provided, of course, that any actual work of electrical development by this State agency should be dependent upon ratification by the following Legislature of any plan proposed. In other words, I set up the agency but made it impossible for it to start any construction work until the Legislature had given its approval. The new bill merely puts this in different language, saying: "If a development by a State Authority is recommended in a plan which is approved by the Legislature, it shall be a corporate municipal instrumentality of the State known as the Trustees of the Water Power Resources on the St. Lawrence River." From thereon, the new bill is identical in principle and practically identical in language with the bill of last year, conferring upon the proposed Trustees of the Water Power Resources the essential duty, rights and legal authority to carry on their work of actual engineering, construction, financing and sale of power. It is true that the new bill omits a number of sections of last year's bill which were intended to clarify and simplify the work of the proposed commissioners and make their task more simple. Most of the provisions which have been omitted relate to details, but I call your attention at this time to the omission of one declaration of purpose which I believe to be of importance and which I see no reason to leave out in any statement of policy. I refer to the following paragraph of last year's bill which has been omitted this year. It reads as follows: "The development of the said power sites and the generation, transmission and distribution of power therefrom shall be made in such manner and on such terms as to assure fair and impartial treatment of all 'consumers at the lowest rates compatible with a fair and reasonable return on the actual cost thereof." Let the people of this State read and re-read that paragraph. I hope they will. Let them ask the simple question: Does that 1 84

Page  185 Thne St. Lawrence Power Fight paragraph state fairly and clearly the purpose of the development of the State's electrical resources? Why it was omitted I do not know. I am certain that the people of this State will agree with me that this paragraph should be put back into the present bill, for it carries with it a simple truth, a simple expectation, and a clear direction to the commissioners that the power must be developed primarily for the good of the consumers and at fair and impartial rates. It will be difficult for any person to defend the omission of this simple statement from any bill. I shall be interested in knowing what valid reason can possibly be advanced for the omission of this important principle. Such is the summary of the language and the principles of the new bill which opens a new era for the industries and the homes of the people of the State of New York. Let me briefly. recapitulate: First, the bill accepts, word for word, the same paragraph of State policy which I asked for last year. Second, the bill creates a body of five citizens whose primary duty shall be to bring in a workable plan based on that policy. Third, the bill sets up a permanent State agency which will begin to function in the actual work of the development of electrical power just as soon as a succeeding Legislature has approved of the plan submitted. This does not differ in any essential of basic principle from what so many citizens of the State have demanded in the past. The important duty of every citizen of the State - lawyers, business men, the press, the agricultural interests, and the average "man in the street" - is from now on to work whole-heartedly for the carrying out of the proposed policy and the plan which, I am confident, will result therefrom. This is not the time for us to pay heed to carping objections as to detail; to monkey wrenches which some people may try to throw into the machinery; to the magnifying of difficulties which can be surmounted if we have the will to surmount them. I am confident that the great majority of citizens of the State want to see something done and that they believe that it is practicable to work out a State agency method of. development of our great natural electrical 185 r

Page  186 Thne St. Lawrence Power Development Commission resources in such a way that the control of these resources will never pass from the ownership of the State itself. 33 4( The Governor Transmits the Report of the St. Lawrence Power Development Commission. January 19., 1931 To the Legislature: IN ORDER to clarify and simplify the questions involved in the voluminous and necessarily technical reports of the St. Lawrence Power Commission, I have studied and summarized the problems and the recommendations. Here is the background: On March 12, 19 29, I sent a special message to the Legislature in which I laid down these general principles: "In making use of this potential energy on the St. Lawrence, owned by the people of the State, the objective of the problem is essentially this: i. The physical transforming of falling water into electrical current. 2. The transmission and distribution of this current from the plant where it is developed to the industries and homes of the people of the State."ý The first objective was seriously opposed by many people who insisted for varying motives that the physical building of a dam was fraught with danger; that the cost would be prohibitive; and that generation by steam had become as cheap as by water power. The Commission unanimously finds: a. The dam can be built with one hundred percent of safety., actual construction being on dry land by the method of diverting the river first on one side of an island and then on the other side. -185Z

Page  187 Thne St. Lawrence Power Development Commission b. The cost would be about $70,000.,000 less than any previous estimate. c. The cost of generation per horse power would be $io.oo, as against a $25.00 cost for steam power. This is an outstanding vindication for those of us who have supported the project against insidious propaganda for private development. It should foreclose for all time to come further discussion of public development of the St. Lawrence site. Next is the question, "Who shall get the power?" In 1929 and 1930, I consistently held that the power should be developed for the primary benefit of the consumer at the lowest possible rate compatible with a fair return on the investment; and furthermore, I have stressed the fact that the home user is the one to be given first consideration, because today the small home owners and storekeepers are carrying a relatively far greater burden than the industrial user. That is the primary objective of transmission and distribution, and both the majority and minority reports point out that the entire policy of development should be to provide the maximum benefits for domestic consumers, farmers and small users of power. This coincides with my views expressed not only in my message to the Legislature, but a great many times thereafter. I emphasized the fact that my interest in water power development was primarily to get it into the homes of the women of the State and into the small shops and stores, and that only secondarily was it to be used for the huge manufacturing industries. The majority report says in this connection: "All effort should be made to secure the maximum possible reduction in rates to domestic and to small commercial users. In other words, we believe that the principle of 'selling on a commercial basis' should be applied to industrial consumers of power, and that the resulting profits on this business should be applied to the reduction of rates of other consumers.... Not being in a position to protect themselves by an exercise of their bargaining power, they require the protection of their Government in the enjoyment of service at the lowest possible rates. -. and since the transmission and distribution costs of the industrial power supplied near 187

Page  188 Thne St. Lawrence Power Development Commission the site will be very small, a profit may be expected on this part of the business - a profit which should be applied to the reduction of rates to the small customers... it must always be borne in mind that as a practical matter, the large consumer of power is able to protect himself much more effectively than the small consumer. For example, he can usually install his own generating plant. Indeed, this possibility has actually resulted in the establishment of comparatively low rates to large industrial users. It is the small consumer who is unable to cope with the situation. It is he who stands in great need of help from the State. In the judgment of the Commissioners the accent should be put upon his needs." Thus, the entire commission, both the majority and the minority, as well as I myself, is interested chiefly not so much in the disposition of this power to industries which might locate near the St. Lawrence River, but in its cheap sale and transmission to household consumers. Of course, by reason of the fact that the flow of the river is practically constant, the power will be generated during the entire day all the year round at a nearly constant load. Only large industrial plants can use peak power twenty-four hours a day, and it is therefore practicable and feasible to encourage certain types of industry to locate near the site of the power house for the use of this constant load. Next comes the matter of the price which consumers away from the site itself, principally the small consumers, will have to pay for electricity. Hitherto we have relied wholly on Public Service Commission regulation of rates. We all know the long story of how court' decisions, valuation, rate bases, complicated accountings, newly invented methods of finance, and unsatisfactory leadership in the Public Service Commission itself have made impossible the fulfillment of the original purposes of regulation. Something new had to be done. I said to the Legislature in 1929: "That is why in trying to treat this whole problem of development., transmission and distribution of St. Lawrence power as a complete picture in the interests of the people of the State, I have sought a method by which we could avoid the rate regulating powers of the Public Service Commission, tied up as it is at the present time by Federal Court rulings. I have, I88R

Page  189 The St. Lawrence Power Development Commission therefore, after consultation with many experts on the subject, come to the conclusion that the representatives or trustees who develop the power can enter into contracts with transmitting and distribution companies, under which contracts a fair price to the consumer will be guaranteed, this price to make allowances only for a fair return to the companies on the actual capital invested in the transmitting and distributing of this particular power energy. It is a method which is frankly based on theory of contract rather than the theory of regulation." The majority and the minority of the commission both agree with that statement made by me, - that the rates should not be subject to the control of the Public Service Commission, but should be fixed by contract based on a definite method of accounting and valuation, which would insure fair rates for all time to come. The majority of the commission states it this way: "There can be no question but that the existence of litigation in rate cases is a waste which should be avoided by the utility companies as well as by the State. If it is found practicable through a process of negotiation to establish a system of rate control by contract which will adequately safeguard the consumer, a great step forward will have been taken." The minority of the commission says the same thing in another way in recommendation "F": "That the trustees seek to negotiate with the utility companies a contract for the transmission and distribution of the power, which contract by its terms should bind the utility companies to transmit and distribute to consumers all of the power generated at rates or prices to consumers to be fixed in the contract, on the basis of charges, the lowest consistent with a fair return to the power authority on the investment." The next question is, how to transmit the power, i.e., the question of the main transmission lines to carry the power to points of distribution. I foresaw, of course, as everyone does, the possibility that existing private companies might refuse to treat with the State on fair terms for the transmission of this electricity under a 189

Page  190 Thne St. Lawrence Power Development Commission contractual relationship fixing their rates and profits. It was for that reason that I viewed with such alarm the merger of the three largest holding companies of power corporations into the Niagara Hudson Power Company. The creation of this superutility deprived the State of its right to bargain with several companies and compelled it to bargain with this company alone. I want everybody to reread the following clear statement in my 1929 message, for it is just as true now as it was then: "Are the business men of this State willing to transmit and distribute this latent water power on a fair return on their investment? If they are satisfied, here is their opportunity. If not, then the State itself may have to go into the transmission business. It cannot on the one hand let this power go to waste,. nor on the other be required to yield to anyone who would aim to exploit the State's resources for inordinate profit. "We shall soon know whether or not such a contract can be made. If the trustees can make it and it commends itself to the people of the State, then the Legislature and I will approve it- and we can go ahead. But, if no such contract can be made, we shall know the reasons why and protect ourselves accordingly. I want to be in accord with sound business principles. I believe there are enough good business men in this State who see this problem as clearly as I do and will be glad to join with the State in this endeavor. I want to give to business this big opportunity to participate in a public service. "If these proposals become law, we shall have the opportunity of ascertaining whether or not business and finance will accept this way of developing the State's resources for its industries, its commerce, and its homes. On the one hand is the policy of public ownership and control of our power sites, dams, and power plants, with private operation of transmission lines and distributing systems, allowing a fair return on actual cash capital.investment. On the other side is one of two courses - either exploitation by private interests or else public ownership and operation not only of the site, the dam, and the power, but of the transmission lines and distribution systems as well." What does the commission say? The chief divergence between the majority and minority reports is as follows: Both favor a contract with a private utility company by which in effect such company can collect only for the actual cost of services rendered plus a reasonable profit. That is the objective of the proposed contract form of delivering the power. 190n I

Page  191 The St. Lawrence Power Development Commission The minority, however, recommends that if such a contract for transmission cannot be made on a fair basis with an existing utility company, the Authority should try to get some other private company, existing or to be organized, to carry the power; and that it is wholly possible to interest private investment in such a company, because the earnings would in effect be based on a firm contract with the Power Authority. As an alternative to this, if such private transmission cannot be contracted for, the minority report recommends that the Power Authority itself build transmission lines in order to bring the cheap power into the homes and shops of small consumers. In this connection, both the majority and minority of the commission fully realize that municipalities or lighting districts could purchase this cheap power for distribution to their citizens if, because of existing poor service or exorbitant rates, it became necessary. The majority says: "Your commission is aware that a considerable number of municipal distributing systems are already in existence in New York State, and that they are charging rates which compare very favorably with the rates charged by private companies operating under similar conditions. These municipal systems should be given full opportunity to purchase a reasonable share of the St. Lawrence River power at such prices as may be necessary to cover the cost of generation and of transmission. Moreover, any municipal or other political subdivision of the State that chooses, in the future, to engage in the distribution of electric current, should be given the opportunity to purchase St. Lawrence power on conditions at least as favorable as those which are offered to private distributing systems. In the event that all of the water power shall be sold to private transmission and distribution companies at the generating station, this sale should not be made except under a contractual agreement whereby these companies will transmit a reasonable share of the power to municipal plants at prices representing no more than a fair spread to cover the cost of transmission." These two alternatives which the Power Authority would have 191

Page  192 Thne St. Lawrence Power Development Commission in determining the method of transmitting electricity, are of course the only bargaining club in its possession in its negotiations with the present utility monopoly. If it did not have these alternatives, the State would be at the complete mercy of the Niagara Hudson Power Company. I believe that these alternatives form the very foundation of the plan which will have its ultimate attainment only when the homes of the State get cheap electricity. I believe that these two alternatives provide the whip hand - the trump card - with which the State can treat with the power trust, and I believe that they should be emphasized to the utmost. The majority of the commission does not lose sight of this alternative. In fact, it points out in its report, though not in so specific a manner, the efficacy of these alternatives as a bargaining weapon. The majority report states: "Can satisfactory arrangements be made between the power authority and privately owned transmission and distribution companies.. 0. We hope that it will be feasible to make an. acceptable contract. A genuine effort should be made to secure such a contract before consideration is given to a plan for State transmission and distribution.... In the event of the inability of the trustees to make such a contract, they shall have such authority as is necessary to make other disposition of the power." Of course, the phrase "to make other disposition of the power" would necessarily include the two alternatives about which I have spoken, and it must be clear to anyone reading the report that the majority of the commission is desirous of retaining in the hands of the Power Authority these bargaining weapons with which the State should enter into negrotiations with the power companies. The minority report stresses the importance of being specific and clear about the two alternatives, putting them in plain language into the law creating the Power Authority. I desire to repeat, however, that both reports should be a source of gratification to those of us who have been interested in cheaper electricity in the homes. They show, first, that the 1n9

Page  193 Bill to Develop St. Lawrence Water Power power can be developed cheaply; second, that the rates at which it is to be sold to the ultimate consumers should be fixed by contract in the interest of the consumer; third, that if the contract is impossible to obtain, alternative methods should be pursued which would ultimately place this power in the homes of our citizens at low rates; fourth, that the authorities of the United States and Canada have so far evidenced an attitude of friendly cooperation; fifth,, that the time is ripe for the creation by the Legislature of a power authority with legislative sanction to proceed to carry to completion its negotiations, as well as such further necessary studies as need be made of the building of transmission lines by the State, or the possibility of the creation of a new corporation to undertake to contract with the State, for the transmission of this cheap electricity. I trust your Honorable Bodies will study and act on these most vital reports. 34 [ The Bill to Develop St. Lawrence Water Power Is Introduced. Statement by the Governor. March 4, 1931 I BELIEVE that the submission of this bill should be hailed by proponents of public, governmental water-power development as a remarkable step toward the attainment of their ultimate goal. If you had told the most ardent and enthusiastic three years ago that such a bill would be possible today, they would have laughed at you. And yet, here we are with a definite, concrete proposal, submitted after a careful survey by a commission authorized by the Legislature and equipped with expert legal and engineering assistance, which embodies every sound principle and policy which reasonable progressive opinion advocates. The bill is in principle acceptable to me. There are a number of amendments which I should like to see made, and on which I propose to invite the legislative leaders into conference. I sin'Q93

Page  194 Bill to Develop St. Lawrence Water Power cerely hope that this bill will pass, with the amendments I have in mind. The bill conforms with the principles which I laid down in my messages of March 12, 1929 and January 19, 1931 to the Legislature on this subject, in practically all of its fundamentals: 1. It definitely establishes the policy and principle of constant, inalienable public ownership and control for all time to come. 2. It sets up a public agency, to be appointed by the Governor with the advice and consent of the Senate, to build the necessary dam and power houses by the issuance of bonds. 3. It declares that the primary purpose for the development of this electricity is the benefit of the people of the State as a whole, and particularly the domestic and rural consumers of the State so that the homes and farms of the State may receive cheap electricity; and that only the secondary purpose is the furnishing of cheaper electricity to factories and industrial establishments. 4. The people of the State can be fully and adequately protected from every angle in the sale of this power, right down to and including the time when it actually comes into their homes and farms, for the following reasons: A. The rates to be charged for electricity shall be definitely fixed by a contract or contracts. In this way, all of the troubles which now exist in fixing rates of utilities will be avoided, in that all the judge-made law concerning good will, reproduction cost, going value, franchise value, etc., etc., will be avoided. Rates will be based only on actual costs, under accounting methods which will avoid all of the present ingenious methods of devious financing used by some of our utility companies. The Public Service Commission will not be able to grant any increase in rates under any circumstances. B. The Power Authority is given power to enter into one or more contracts with any corporation or corporations, whether now existing or to be formed in the future, for the transmission 194

Page  195 Bill to Develop St. Lawrence Water Power of this electricity from the power house to the various localities in the State, and with any corporation, old or new, for its distribution into the individual homes and farms. Under the very terms of the bill, the details of these contracts are so laid out that the rates to be paid by the people, as before stated, will be fixed on an actual cost basis at the lowest possible figure. There is absolutely no limit as to which company or how many companies the Power Authority can contract with. Under the provisions of the bill, it can contract with one existing utility company or with several; if it wishes it can contract with any other kind of corporation, one or more; if it wishes it can contract with a new corporation or corporations to be organized for the purpose; and if it wishes it can be instrumental in forming a new corporation for the purpose of making a contract or contracts. C. Any contract or contracts which it desires to enter into shall be subjected to public inspection and public hearings beforehand, after due public notice. The contract or contracts will be subject to the approval of the Governor, who will be given sufficient time and a sufficient appropriation to enable him to enter into an extended investigation of the contract and all that it means for the people of the State, and to permit him to entertain any objections made by various municipalities or groups of consumers, and so protect in every way the interests of the people. D. In the event that the Power Authority decides that it cannot make a contract or contracts which are advantageous to the people of the State, or in the event that the Governor disapproves of the proposed contracts on the ground that they are not advantageous to the State, the Power Authority is then directed to get up a plan whereby the State can build its own transmission lines and distributing systems so as to do the whole job itself. Before, however, actually building the lines, the plan will have to be approved by the Legislature and the Governor. E. Every municipality or municipal lighting district that has its own distribution system, or every municipality or municipal lighting district which establishes one, is to have a preference in "I95

Page  196 Bill to Develop St. Lawrence Water Power the purchase of this electricity from the Power Authority for distribution among its citizens. Therefore, the bill provides the two bargaining clubs which I have always insisted were necessary for the full protection of the people. The fact that these bargaining clubs clearly appear in this bill, proposed by the majority of the commission, shows plainly that the commission at all times, as I set forth in my message of January 19, 1931 to the Legislature, had in mind the necessity of these alternate methods in dealing with any existing utility company or companies which might refuse to enter into a contract which the Governor ultimately would deem advisable for the best interest of the people of the State. These alternatives are, of course, as above set forth: (1) The power to disregard any existing utility company or companies in making contracts for the transmission or distribution of the power; and (2) the definitely stated proposal for the State to enter into a plan of transmission by itself through its own transmission lines and distributing systems, built and maintained by itself. I hope that I may be pardoned the expression of considerable pride and gratification that the Legislature and I have been able, during my short tenure in the Executive Chamber at Albany, to arrive thus far toward fulfilling what I know to be the universal desire in this State to develop the tremendous electrical energy in the St. Lawrence River by a State agency with the sole consideration in mind of providing cheap electricity to the people of the State. I hope that the principle enunciated in this bill will be the forerunner of similar legislation for the development of other water power in this State, as well as in other States. I consider it an outstanding triumph in the battle of the people for the retention for themselves of the benefits of their natural water power resources instead of turning them over to private corporations for selfish exploitation. The safeguards in this bill, whereby every proposed contract is wholly open not only to public inspection but also to approval by the Governor after careful investigation could only be circumvented in the future by a combination of complete lack of public interest plus a set of faithless public 19n6.IF

Page  197 A ttempt to Kill the St. Lawrence Power Bill officials. There is no doubt in my mind that if contracts that are honestly in the public interest and that provide really re~asonable rates for electricity cannot be made, then the Legislature and the 4 Governor will take the next economically sound step for publicly owned transmission lines and some new form of public or quasipublic distribution. 3 5 (1 Statement by the Governor on the Opposition's Attempt to Kill the St. Lawrence Power Bill. April 2, 1931 WORD has just come to me that the St. Lawrence Power Development Bill., introduced by Mr. Cornaire, and passed by the Assembly in substantially the same form as it was prepared by the St. Lawrence Commission, has been suddenly and unexpectedly amended in the Senate in a way which I cannot accept. The amendment deliberately strikes out the power of the Governor to appoint the members of the Power Authority. Instead, it substitutes therefor five individuals by name. On Monday, March 23, in a conference with the leaders of the Legislature, I specifically and in very, definite terms told the President Pro Temn of the Senate and the Speaker of the Assembly that I could not accept any amendment taking the appointive power away from the Governor and gave my reasons thereforreasons which were apparently acceptable to the Assembly, as no change of this character was made by that body. In view of this clear understanding by the President Pro Tem of the Senate I am forced to the conclusion that this amendment is deliberately made for the purpose of making certain my veto of the bill, and thereby creating an excuse for postponing any action for another year. It is in line with the long policy of obstruction, objection and refusal even to consider any legislation which looked to conserving for the people their rights in this water power which has marked the attitude of the Republican leaders in the Legislature for many years past - a policy which public opinion forced them In197

Page  198 A ttempt to Kill the St. Lawrence Power Bill to abandon last year and which this year has made it impossible for them-'to delay in any legitimate way the final step toward the creation of the Power Authority. I have conceded much in order to get action on power development and each concession has been followed by the raising of some new objection. Last year, after a continued campaign of opposition and delay, the Republican leaders finally consented to my appointment of a commission of five men to study and report plans for developing power on the St. Lawrence. This bill not only provided that these five men should be appointed by the Governor, but further specifically and definitely provided that, in the event of a favorable report on a plan by this commission, the proposed Power Authority itself should "consist of five trustees... to be named by the Governor by and with the advice and consent of the Senate." This winter the report of the Investigating Commission itself provided that the Power Authority should consist of five trustees to be appointed by the Governor by and with the advice and consent of the Senate. The bill as introduced in the Assembly by a Republican legislator provided that the Power Authority should be appointed by the Governor in exactly the same way. And finally, the bill as passed by the Assembly, provided exactly the same thing. And now for the first time on no revealed recommendation and without any responsible authority to back it up, the Senate has arbitrarily struck this provision from the bill and has amended it by actually naming five individuals. The action of the Senate is in direct contravention of the law Of 1930, is directly opposed to the report of the commissioners and is directly opposed to the action of the Assembly which accepted the appointing power of the Governor. Furthermore, I want to make it perfectly plain that this great project for the power development of the St. Lawrence falls very distinctly and definitely within the Executive power. A principle is involved, which I hoped was settled forever in this State by the Constitutional Convention, that Executive responsibility must be armed with Executive authority. The Governor is an 198

Page  199 Radio Address on St. Lawrence Power Bill important and integral part of the whole plan. No contract can be awarded without his approval; no project, no financing can even be started until the Governor has approved.- In addition, the Governor must at all times be in close touch and sympathy with the trustees, not only in facilitating their work in connection with the drawing up of proposed contracts, but also in assisting them in their relations with the Federal Government, the Canadian Government and the Government of the Province of Ontario. I am convinced that this action is dictated by forces which have prevented the development of water power on the St. Lawrence for the last generation. I am convinced that Republican leaders in and outside the Legislature have realized that this movement toward the public development of water power is from their viewpoint dangerously near to achievement. They knew that I would refuse to accept an amendment to the bill taking out the power of appointment and naming the individuals, even if it necessitated a veto. The conclusion is irresistible that this action was taken purely to hamstring, hinder and stop the power development. I must decline to divest either the present Governor or any future Governor of his Executive authority and responsibility toward this great project. I am confident that sober second thought will persuade the Legislature to restore the bill to the original form of the law of 1930, to the original form of the report of the Commission and to the original form in which it passed the Assembly. 3 6 Radio Address Following Passage of the St. Lawrence Power Bill (Excerpts). April 7, 1931 I WANT to talk to you very briefly tonight about the influence of public opinion on great questions of State policy, and I shall use as an illustration an episode that has occurred in Albany during the past ten days.

Page  200 Radio Address on St. Lawrence Power Bill Since last Thursday when I decided to make a frank appeal to the people of our State to help me save the St. Lawrence water power project, the crisis itself seems to have been averted. This afternoon I am happy to say that the State Senate has refused to pass the restrictive amendment proposed by Senator Knight, and there now seems no good reason why the Power Authority bill should not become law within a very short time. I feel very strongly that this result is due in large part to the wave of protest which swept over the State from north to south and from east to west immediately following the announcement by the Republican Senate leaders last Thursday that they had amended the power bill in a way which they knew definitely would of necessity compel its veto by the Governor. The great majority of the newspapers of the State, regardless of party, understood not only that the attempt to deprive the Governor of the power of appointing the Trustees for the St. Lawrence development was merely another of a long series of political tricks, but also that it was contrary to the law passed last year, contrary to the recommendation of the Investigating Commission and contrary to the bill as it passed the Assembly a week ago. Will you let me for a few minutes describe very briefly the existing situation in regard to the St. Lawrence Power Development?... (Here followed a statement of the history of the project, which is covered in the preceding papers in this chapter.) With the passage of this bill and its signature by me, the State of New York enters into the definite first phase for the development of the St. Lawrence through a governmental agency. Three tasks will confront the new trustees: first, to complete and perfect the engineering plans; second, to try to make contracts for transmission and distribution with existing or new private companies; third, to negotiate with the Federal Government and with the Canadian authorities. On this latter point, I can only say that I hope that there will be no political or administrative obstruction in Washington; and the State of New 200

Page  201 Radio Address on St. Lawrence Power Bill York must very properly make its plans so as to interfere in no possible way with the present or future navigation of the St. Lawrence River. The State of New York has no desire selfishly to block either our Federal Government or the Canadian Governments in any development of the St. Lawrence on which they may mutually agree. There is, therefore, no real reason for obstruction in Washington. The bill further distinctly provides that if the power Trustees are unable to bring about a contract or contracts satisfactory to them and to the Governor, with private companies, for transmission and distribution, then the Trustees must report to the Legislature some other plan, if practicable, for either transmission or distribution, or both, which may involve the erection of transmission lines by the Authority itself. To my mind the other great keynote which is struck by the present bill is the solemn declaration of principle that the primary purpose of this St. Lawrence Development is not merely for big industrial purposes but is essentially for the providing of cheaper electricity and better facilities for distribution of electricity to the householders and small users as broadly as possible through the State. From the very beginning I have held to a consistent course and a consistent objective. I have fought all along for development of this power by an agency of the State itself and not by any private corporation. Furthermore, I have fought from the very beginning for the use and distribution of this power for the great purposes of bringing more and cheaper electricity into the homes of the State, into the small shops and small industries, into the farms and into the flats. I am grateful for the fact that there has been such a splendid response from every corner of the State to this policy, for without that response it is clear that it would not have had a chance of going through the Legislature. The influence of a handful of political leaders is strong and so is the influence of private corporations when they see an opportunity to get something for nothing; but stronger than all of these put together is the influence of Mr. and Mrs. Aver201

Page  202 Municipal Power Plants age Voter. It may take a good many years to translate this influence of the people of the State into terms of law, but public opinion, when it understands a policy and supports it, is bound to win in the long run. 3 7 ( A Recommendation for Legislation Permitting Municipalities to Build Their Own Power Plants. February 15, 1932 To the Legislature: THE intermediate report of the Power Authority points out the necessity of early adoption of legislation which will permit municipalities to buy the cheap electrical power to be developed from the St. Lawrence. In connection with this,, one or more municipalities should also be enabled by law to combine into a utility district for this purpose. It is equally important that municipalities, acting either for themselves or in conjunction with other municipalities or parts thereof, should have the right, on the approval of a majority of the voters in the region affected, to manufacture., transmit and distribute electrical energy. Last year there were introduced in the Legislature two bills to carry out this purpose. They were not passed. Nor, indeed, were they given any adequate consideration. I am causing legislation to this end again to be introduced and trust that your Honorable Bodies will adopt it so as to permit municipalities to help reduce rates for electricity for their inhabitants. A number of municipalities in the State now have this right; and it is common knowledge that the rates for electrical energy are much cheaper in those localities than elsewhere. There can be no valid objection to this legislation, except from those utility corporations which seek to maintain as exorbitant rates as possible. If there are details of the proposed legislation which do not meet with the views of your Honorable Bodies, 202%

Page  203 INegotiations for Canadian Treaty I shall be glad to confer with you relative to amendments, providing only they do not change the general principle of the program. I believe that it is particularly important that this policy be written now into the statute law of our State in order more adequately and more quickly to obtain all of the benefits of the development of the St. Lawrence water power toward which the Power Authority has made marked progress. 3 8 1 An Exchange of Telegrams between Governor Roosevelt and President Hoover on Negotiations for Canadian Treaty for Development of St. Lawrence River. July 9, 10,11932 Hyde Park, July 9, 1932.THE Power Authority of the State of New York has officially reported. to me the status of its negotiations with the State Department in the matter of effecting an agreement between the Federal Administration and the State of New York in connection with the development of the St. Lawrence River for navigation and power. According to this report, after many protracted conferences between the State Department and the New York State Power Authority over a period of many months, the Secretary of State has referred the issues to you for final determination. The question, failure to agree upon which has prevented complete accord, is the proportion of the cost to be borne by the State of New York. I am sure that you agree with me that prompt and speedy settlement of this only question remaining unsettled is a matter of vital necessity. It is a vital necessity for the simple fact that this great project involves two objectives of equal importance and cannot in public justice accomplish one without the other. I am deeply interested in the immediate construction of the 20

Page  204 Negotiations for Canadian Treaty deep waterway as well as in the development of abundant and cheap power. The State of New York not only owns this potential power, but seeks, through a State agency, to make it available to millions of people at reasonable cost. That is why the determination of the share of the total cost of construction to be paid for by this State is a present factor which should not be relegated to later negotiations between US. Four sovereignties are involved: The Dominion of Canada and the Province of Ontario, the United States and the State of New York. In Canada, the Premier of Canada and the Premier of Ontario have directly conducted negotiations on this very subject. In international matters affecting the joint rights and interests of the United States Government and one or more of its sovereign States,, an understanding should be reached between the Federal and State Governments as a condition precedent to the conclusion of negotiations with a foreign Nation. In view of this, therefore, it is my belief that, through a personal conference between us, this could be promptly solved. With such an agreement between the Federal Administration and the State of New York, it would be my hope that it would be possible to submit a treaty to the Senate for immediate and, I hope, favorable action as soon as signed. May I respectfully point out that such action would hasten greatly the initiation of this vast project -one which means cheap transportation by deep waterway for the agricultural and other products of the West; cheap electricity from the Stateowned and controlled resource, to be developed for the primary interest of homes, farms and industries; and, of immediate importance, employment for thousands of workers. If, by thus cutting red tape and eliminating formalities, we could work together to secure early and final action on this great public work, it would be greatly to the public interest. It has already been too long delayed. 204n

Page  205 Negotiations for Canadian Treaty I hold myself subject to your call and am ready to go to Washington on forty-eight hours' notice at your convenience. FRANKLIN D. ROOSEVELT The President, The White House, Washington, D. C. Washington, July 1o, 1932-. I am in receipt of your telegram of July 9. I am glad to assure you that the negotiations between the United States and the Dominion of Canada in respect to the Great Lakes waterway are making progress and that it will not be necessary to interrupt your cruise by a visit to Washington. These negotiations, as you know, involving a score of intricate problems, have been under way for nearly three years and have now reached a hopeful aspect. While under our Constitution international treaties fall within the sole jurisdiction of the Federal Government, nevertheless representatives appointed by you and leaders in other States primarily concerned have been consulted during the course of the negotiations. I am in hopes an agreement can be reached between the two Governments, but it has not yet been concluded, and I shall be glad to have you advised when this occurs. The question of the disposal of the by-product of power which will result from the works which border the State of New York like all domestic questions of this character affecting the two countries, is reserved by the proposed treaty for purely domestic action by each country. This disposal is not the subject of international agreement. If a treaty is concluded and is ratified by the Senate, then the domestic questions which may arise must be settled through the action of both the Senate and the House of Representatives in accordance with Federal and State law and in accord with the interests of all the States of the Union. You will realize that neither you nor I have authority to enter 205

Page  206 Negotiations for Canadian Treaty upon agreements in respect to these domestic questions, but if the treaty is consummated and ratified, I shall be glad to consult with you and other Governors. I have no doubt that we can make such recommendations to the Congress as will be helpful to them in solving the particular domestic problems relating to each State. Having ardently 'advocated for over ten years the great work of completing this shipway from Duluth and Chicago to the sea, I am glad to know that it will meet with your support. HERBERT HOOVER Honorable Franklin D. Roosevelt, Governor of New York, Albany, N. Y. 206

Page  207 V Old-Age Assistance IN MY various campaign speeches in 192 8 (see, for example, Item 5, this volume) I had discussed the question of assistance to the needy aged persons of the State. In my first Annual Message to the Legislature (Item 14, page 83, this volume) I recommended the creation of a commission to study the subject. As a result of this and further recommendations to the Legislature (see Item 39 of this volume), a commission was set up to investigate and determine the most practical and efficient method of providing security against old-age want. The commission made its report to the Legislature of 1930, and a bill was passed which I signed on April 10, 1930. In addition to the Items in this chapter, see also in this volume Item 89, page 416; Item 17, page 1o2; Item i8, page 121.

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Page  209 3 9 ({The Governor Recommends the Creation of a Commission to Study the Problem of OldAge Assistance. February 28, 1929 To the Legislature: T _HE majority party in your Honorable Bodies has stricken out from the appropriation bill which I submitted to you pursuant to the Constitution, an item to defray the expenses of a proposed commission to study the question of security against old-age poverty and want in this State. I cannot believe that it was your intention summarily to dismiss in this manner all consideration of the pressing needs of our numerous aged poor. For that reason, there is being introduced for your consideration a bill creating such a commission, and I urge upon you its immediate adoption. New social conditions bring new ideas of social responsibility. The problem of how to take care of the aged poor outside of State institutions is now occupying the attention of other States of the Union as well as of foreign countries. We can no longer be satisfied with the old method of putting them away in dismal institutions with the accompanying loss of self-respect, personality, and interest in life..This State abandoned some time ago the principle of institutional care for poor children, and adopted the method of helping them in their own homes. Similar provision should be made for old age. Poverty in old age should not be regarded either as a disgrace or necessarily as a result of lack of thrift or energy. Usually it is a mere by-product of modern industrial life. An alarmingly increasing number of aged persons are becoming dependent on outside help for bare maintenance. While improved medical science has increased man's span of life., the rapid pace of modern industry has proportionately increased the number of years during which he is an unsought employee. While the worker of today on the average may look forward to a longer life than did his grandfather, he must necessarily count on a shorter period of industrial 209nr

Page  210 Thne Problem of Old-Age Assistance availability. No greater tragedy exists in modern civilization than the aged, worn-out worker who after a life of ceaseless effort and useful productivity must look forward for his declining years to a poorhouse. A modern social consciousness demands a more humane and efficient arrangement. Some of our States and some foreign countries have dealt with the problem by adopting a straight pension system, where the Government distributes a certain periodic stipend to aged persons fulfilling the requirements as to residence, citizenship, etc. I am informed that such a system has been adopted in Montana, Kentucky, Wisconsin, Alaska and Nevada, and in Australia, Denmark, the Irish Free State, New Zealand, Norway and Uruguay. Objections have been made to this method on the ground that it savors too much of a straight governmental dole, and that it is likely to sap a man'Is self-reliance and discourage thrift. On the other hand, a number of countries have adopted a system in which workers really insure themselves with the aid of the State against old-age want. They contribute certain fixed weekly amounts into a capital fund, during their more youthful years of industrial productivity. These contributions are equally matched by the Government itself; so that the worker and his Government are equally sharing the burden of insuring against the needs of old age. Provision is made under such plans, for temporary, cessation of such contribution by the worker during enforced unemployment. In general this scheme of old-age insurance is followed out in England, Belgium, France, Argentina, Austria, Chile, Czechoslovakia, Germany, Greece, Iceland, Italy, Poland, Portugal, Rumania, Spain, Sweden, Switzerland and Jugoslavia. There is no reason why our State, which is one of the foremost centers of industry in the world, should not now investigate the plans of these various jurisdictions as well as other proposed methods, and, indeed, the entire question of security against oldage want, to determine what, if anything, should be done by it to meet this rapidly growing problem within our own borders. It must be borne in mind that although the adoption of any plan of old-age pensions or old-age insurance will be expensive, 210n

Page  211 Address on Old-Age Security the present method by which the State's aged poor are being taken care of in institutions is also expensive. Four or five years ago, the United States Department of Labor through the Bureau of Labor Statistics made a study of the poor-farms and almshouses through-.out the Nation, with a view to ascertaining the expense of maintaining them and the value of the capital invested, including the land, buildings and equipment. In the State of New York, the investigation covered 61 institutions housing 9,203 inmates. The report shows that the capital value of these institutions was $16,321,338 or $1.,773.49 per inmate, and that the annual maintenance cost was $2,753,327 or $299.19 per inmate. In other words there were then invested almost $ i,8oo of public moneys for each inmate of our poorhouses in this State, and almost six dollars per week was being spent by the public to maintain each person. This present high cost should be carefully' considered in deciding upon the advisability of making a change in our policies of providing for the dependent aged. I look forward hopefully to the day when our poorhouses will be used, if at all, only for the helpless incurables of the State who by virtue of physical or mental handicaps are unable to provide for themselves. Apart from the apparent justice of making some provision for our aged poor outside of institutions, a wise public policy dictates the necessity of an early formulation of a definite intelligent policy along these lines. The sooner this problem is met scientifically, the more economical will be its operation. 40 j Address before the New York Women's Trade Union League on Old-Age Security (Excerpts). June 8, 1929 I FEEL that it is a great honor and a very high compliment for the New York Women's Trade Union League to celebrate its 011

Page  212 Address on Old-Age Security Twenty-fifth Anniversary at the home of the Governor of their State. To have earned the confidence, to have deserved the friendship of an organization such as yours, are achievements of which I am very proud. I am prouder still that this friendship and mutual understanding between us dates back to my first entrance into public life, when, as a new Senator in the legislative halls,, I found myself fighting shoulder to shoulder with your body for better working conditions, for fairer treatment of labor in this State. I remember well our bitter struggle and eventual triumph for a shorter working day, and as I look back I think we can both feel that much real progress has bceen made and that even greater progress will be made in the near future. One thing I think has been triumphantly demonstrated during the last twenty-five years, and that is that organizations of workers, wisely led, temperate in their demands and conciliatory in their attitude, make not for industrial strife, but for industrial peace. The whole tendency of our modern civilization has been toward cooperation. Employers and employees alike have learned that in union there is strength, that a coordination of individual effort means an elimination of waste, a bettering of living conditions, and is, in fact, the father of prosperity. There were many mistakes made in the early days on both sides. There was a period when every combination of industry was designated as a trust, and the word "trust" was considered an opprobrious term. And there was a time when organized labor was too prone to strike first and negotiate afterward. That period is rapidly passing. Capital is realizing that without the friendly and intelligent cooperation of labor it cannot exist, and labor has learned that without the aid of capital it cannot earn its daily bread. Indeed, so successful has this new principle of arbitration, calm discussion, and willingness to look fairly at the arguments on the other side proved in our industrial affairs that it has led to a general demand for its adoption between Nations as the surest guarantee for the peace of the world. There has been also a growing realization on the part of our r%12r

Page  213 Address on Old-Age Security people that the State itself is under obligations to those who labor, that the citizen who contributes by his toil to the wealth and prosperity of the commonwealth is entitled to certain benefits in return, which only the commonwealth can give. This principle, so far as it affects the healing of the sick, the amelioration of the sad lot of the insane, the care of the orphan and the education of the child., has been, I am proud to say, more clearly recognized, more firmly established in the State of New York than in any other political division of our country. It is my feeling, and the feeling I think of a majority of our citizens., that the time has now come to take a further step, that we should forever banish the black shadow of old-age want. For those who may no longer earn their daily bread, because of some swiftfalling accident or slow incurable disease, we have provided, and we are providing, hospitals, sanitaria, and institutions where., so far as is humanly possible, they may be restored to useful life or, if that is not possible, receive care and comforts. But how about those whose bodies are not stricken by sudden disaster, who work hard and faithfully through long years., until time lays its heavy hand upon them? Is there no obligation on the part of the State to look after these? It is through no fault of theirs that they cannot continue to add to our prosperity or to labor for the good of the whole State. And yet, what answer have we made, except the creation of that gloomy institution which haunts the thought of every aged worker, like some horrible nightmare, the poorhouse? I do not believe it necessary, nor do those who have studied the matter long and thoughtfully, believe that it is an economic necessity that we herd our aged workers, dependent on their toil for their daily bread, in institutions of this character. It is not even an economic solution of the problem. It is the most wasteful and extravagant system that we could possibly devise. It belongs to that past barbaric age when we chained our insane to the walls of our madhouses. By a proper system of old-age pensions, this dark blot on our modern civilization can be eliminated. I want New York to take the leadership in this movement as it has in other humane efforts. 913

Page  214 Address on Old-Age Security The Legislature last year accepted my very strong recommendation for the appointment of a commission to study and report as to how this could best be done, and I am sure that commission will consist of citizens in thorough sympathy with the object and holding broad and comprehensive views, as well as practical experience in the handling of the financial problems involved.... They will, I confidently trust, have a very definite and practical plan to present at next year's session, and I beg of the Women's Trade Union League something more than a mere lukewarm support in the effort to be made to enact their recommendations into law, if they meet with your approval. You, of all organized bodies, should feel a deep responsibility, a duty that is incumbent upon each one of you, personally, to see that this step forward is not blocked by stubborn stupidity, by incomprehensible refusal even to discuss it or to argue it fairly in our legislative halls. Make it clear that this particular thing will not be allowed to sink silently into that slimy morass called "politics" as has been the fate of so much labor legislation in the past. If by your own industry, if by your own thrift and diligence, you have provided an oldage pension of your own, do not, I beg of you, forget those less fortunate, to whom each birthday means a drawing near of a penniless old age, too horrible to contemplate calmly. There is one other thing that I would like to urge upon you, and that is a better understanding and a closer cooperation between you who, as workers, are organized, and those who work quite as laboriously, quite as tirelessly, with hours that know no legal limitation and for wages which are often pitifully inadequate. I am speaking now of those who toil in the fields, as well as those who toil in the shops. There should be the deepest sympathy, the greatest willingness to work together, between the farmhand and the shophand. Too often have there been mutual distrust and mutual misunderstanding. They cannot live without the products of your industry, and you would starve without the products of their toil. By reason of the nature of their occupation they may not organize as you have organized. The only capital on which they can make demands is the capital which they, them214

Page  215 Address on Old-Age Security selves, possess, but this is no reason why they are not as truly workers as yourselves. I hope for a better understanding of their problems on your part and for a more sympathetic interest in your problem on their part than has existed in the past. We are all citizens of the same State and the State is created to help its citizens, to make life a more pleasant thing for all of us, to provide its protection and to prevent the unscrupulous and the powerful from oppressing the weak and the helpless. I beg of you to take the lead in promoting this better understanding, this closer relationship, between our city and our rural life to the end that both city and country alike may work intelligently, harmoniously and sympathetically to solve the problems of government which still lie before us. It is, I think, obvious to all that the problem. of the needy aged cannot be solved by the mere building of vast State institutions in which to place them during their declining years. Modern thought is getting away from institutions. It is a curious fact that in all this talk about the breakdown of family life, the tendency is more and more to take care of the individual in the home. For that reason I believe that all will agree that,, whatever the details of the plans which will be worked out by the new commission, it is clear that they will not advocate taking our aged poor away from their homes and placing them in hospitals and other public institutions. In the final analysis, good economics as well as a decent sense of humanity dictates that if 'the State is to aid them in their declining years that aid should be given to them under conditions where they may maintain their independent lives and hold up their heads as citizens of America. 215

Page  216 The Commission on Old-Age Assistance 41 ~ Governor's Statement on the Report of the Commission on Old-Age Assistance (Excerpts). February 24, 1930 WITHIN the next few weeks the people of the State are going to hear much in regard to the subject of a new law to provide against want in old age. For many years other countries - in fact, almost all other civilized countries - have had some form of governmental system to take care of people who become dependent in their old age. Two or three States in our own country have started systems. Because I have felt for many years that New York should do something to fill this great need, I asked the Legislature in my first annual message over a year ago for the appointment of a commission to study and report. This commission, composed principally of members of the Legislature and of three appointees of the Governor, started its work last summer and has just made its report and recommendations and has caused to be introduced into the Legislature a bill by the chairman of the commission, Senator Mastick. This whole question is, of course, a large one and because of its magnitude and because of our lack of experience in this form of social legislation in this country, it is perhaps too much to expect that the Mastick Commission would have brought in a comprehensive plan. Nevertheless, thousands of people will be disappointed in the recommendations of the- commission. Frankly, I share in this disappointment and letters have begun to pour in, many of them objecting to the proposed machinery for old-age relief and many of them objecting to the fact that the commission has not gone to the real root of the needs. The law proposed by the Mastick Commission does set up a form of machinery for old-age relief, this machinery being based primarily on an extension of the existing welfare or poor laws which are now administered primarily by local officials in the various cities and counties of the State. Right here a grave quese.i61

Page  217 Thne Commission on Old-Age Assistance tion is raised: Should the administration of a comprehensive law for the relief of the aged poor be left to the discretion of local officials or should a state wide system of administration be provided? The difficulty with the principle of purely local administration is that we know from practical experience that it will in all probability be administered fairly, justly and economically in some counties, and extravagantly and, perhaps, unjustly in other counties. In any event local administration undoubtedly does open the door for politics to enter into practical relief. The amount of the relief is left wholly uncertain and may range from $5.00 to $50.00 a month - further evidence that the bill should be regarded as a wholly incomplete plan. Finally, and of great importance, the Mastick Commission has accomplished nothing toward the setting up of a State-controlled method calculated to encourage savings on the part of individual workers. I think I. am right in saying that those who have given the deepest study to this whole subject and thoroughly understand legislation of this kind as set up in other countries, believe that a mere dole or pension for the aged poor is wrong in principle and bad in practice. The most successful systems are based on what might be called a series of classes by which a person who has done nothing in his or her earlier life to save against old age is entitled only to old age care according to a minimum standard. Opportunity is offered, however, under these systems for wage earners to enter other classifications, contributing as the years go by toward increased incomes during their later years. In other words, a definite premium should be placed on savings, giving to the workers an incentive to save based on the prospect of not only food and shelter but on comfort and higher living standards than the bare minimum. All of this has been omitted by the Mastick Commission, yet it is a fundamental of the principle of old-age security against want unless we are to accept merely a dole system.

Page  218 Thne Commission on Old-Age Assistance All in all, therefore, the Mastick report is a distinct disappointment to many people in this State. It may be argued that it is a mere stop-gap, a small beginning toward a comprehensive plan. Perhaps in this light it may be best for the State to accept the Mastick bill with the distinct understanding that it has many grave objections both in the relief to be afforded and especially in the manner in which that relief is to be administered. In any event, I am glad to see something come out of my recommendation of a year ago and we can only hope that this will be the forerunner of a proper system of security against old-age want in the years to come. 218

Page  219 vi Labor Legislation THE ATTITUDE Of the Democratic Administrations in the State of New York on labor and social legislation, and the difference between it and that of the Republican leadership, were discussed in detail by me in the gubernatorial campaigns of 1928 and 1930 (see Items 4, 5, 9, 10, 1,9, 87 and 88 of this volume). The papers and speeches in this chapter, as well as parts of the Annual Messages (see Item 14, page 83; Item 15, page 9o; Item 17, page 1o4; Item i8, pages 115, 123 of this volume), deal with the general subject of this type of legislation. See also the Items in Chapter XVII of this volume, on unemployment. It seems unnecessary to point out that my 1929-1933 principles and policies., with respect to those who are generally and popularly included within the term "labor," have been continued in large part since my inauguration as President.

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Page  221 42 ([A Recommendation for Specific Bills to Improve Social and Labor Conditions. March 22, 1929 To the Legislature: N THESE closing days of the Session I desire to urge favorable action by you upon several bills now pending before your Honorable Bodies, proposed in the interests of improving social and labor conditions. This legislation has been before you for consideration for a number of years, and, while it has received at all times the support of the minority members of your houses, it has not been able to obtain the approval of the leaders of the majority party. I refer particularly to the bill providing for the establishment of a fair wage board to determine fair wages for women and minors in certain industries, Senate Print Number 883, Assembly Print Number 1542; the bill providing for the inclusion within the benefits of the workmen's compensation law all occupational diseases, Senate Print Number 4, Assembly Print Number 52; the bill providing that preliminary injunctions in industrial disputes shall be issued only after a hearing, Senate Print Number 966, Assembly Print Number 708; the bill providing that the labor of a human being shall not be deemed a commodity, Senate Print Number 66, Assembly Print Number 4; and the bill providing for a straight forty-eighthour week for women and children in industry, Senate Print Number 57, Assembly Print Number 149. I consider the foregoing statutory amendments which are requested by the workers of the State to be a minimum of what we should do to promote the welfare and comfort of our laboring classes. Modern social conditions have progressed to a point where such demands can no longer be regarded other than as matters of an absolute right. 221 ~Ir*inr

Page  222 A Report on Labor Legislation 4 3 ({Address before the State Federation of Labor -A Two-Year Report on Labor Legislation. Buffalo, N. Y. August 27, 1930 (Report on Labor Legislation, 1929-1930.) I APPEAR before the State Federation of Labor not to talk politics but rather to make a report on legislation in this State during the past two years and on administrative action on labor problems. Here is the record. i. I have for two years asked the Legislature for an honest law guaranteeing an eight-hour day and a forty-eight-hour week for women and children in industry. A part of this was given when the Legislature this year passed a law which helps to secure a half holiday a week for women working in factories and mercantile establishments. 2.The Legislature has wholly failed to establish an advisory minimum or fair-wage board on behalf of women and children. 13. 1 asked for a law extending workmen's compensation to all occupational diseases. The Legislative leaders in 1929 passed a bill adding a small number of diseases to the list and in 1930 added three more diseases to the compensation list. I suppose we should be thankful for these crumbs, but it would have saved time and trouble all around to pass one complete statute to carry out my recommendations. 4. In 1929 I asked for a law prohibiting the granting of temporary injunctions without notice of hearing in industrial dispute, with provision for trial before a jury of any violation of injunctions, when granted. The Legislature did nothing. I renewed the recommendation this year, and I am glad to say that the force of public opinion and the constant hammering of President Sullivan and other officials of the Federation of Labor at last compelled the Legislative leaders to pass a bill carrying out this recommendation. 5. As usual the Legislature has failed to declare by law that the 922

Page  223 A Report on Labor Legislation labor of a human being is not a commodity or an article of commerce. 6. You all know the strong fight I started the day I was inaugurated to get some form of old-age security against want. We finally persuaded the Legislature to authorize the appointment of a commission to report a plan and on this commission I took the greatest of pleasure in naming our devoted friend, the late James M. Lynch of Syracuse. During his final illness I talked with him on the telephone and I think that it is right that you should know just what he told me about the Old-Age Pension plan which the majority members of the commission were about to bring in. He said: "I don't like this plan. It has three grave defects'. First, it smacks too much of being merely a dole or a handout. Second, it sets an arbitrary age of seventy before anyone can get relief, and we all know that in these strenuous times many people are too old to work when they are sixty or sixty-five. Third, the plan of almost entirely local administration raises the definite danger that the whole system may be run by politics." Jim Lynch was one hundred percent right, but he and I had to accept the bill as the best that we could get this year. I want your backing and whether I am a public official or a private citizen, I will devote my time and energy to obtaining an honest, nonpolitical law to provide full security for every citizen who, through no fault of his own, needs help in his later years. Most of the civilized countries of the world have undertaken a Government-supervised program to alleviate the distress of fluctuating unemployment. You and I are very keenly aware of two very definite facts. The first is that reckless and deceptive promises that this country would never again have a widespread condition of unemployment have not only not been fulfilled but broadly speaking the unemployment situation in the United States is today more serious than at any time since 1893.- Second, we are fully aware that the tendency of the present industrial system makes it increasingly. difficult for any man or woman., past forty years old, to find a new job. 223

Page  224 A Report on Labor Legislation To meet the first fact the State of New York is now engaged in a definite effort to level, in so far as possible, the peaks and valleys of employment. Already we have obtained the cooperation of several hundred large employers of labor. I am very certain that organized labor agrees with me that it is far better for all of us to have steady employment year in and year out, rather than to have periods where there is a demand for more labor than exists, followed by periods when a large percentage of workers are either entirely out of a job or are receiving pay for only one or two days' work a week. The feasts and plenty of yesterday will never dispel the famine and need of today. This effort of the State is, I am glad to say, receiving the hearty cooperation of the more far-sighted employers, and I am confident that further study and further effort along this line will bring real results in the future. On the second point of men and women who find it increasingly difficult to get new work, after they pass the forty-year mark, we have a definite illustration of why unemployment insurance and old age security are very similar problems and ought to be considered hand in hand with each other. I hope that the next administration and the next Legislature will take up a practical., definite study of Unemployment Insuranc e, avoiding, of course., any form of dole and basing their investigations on a sound insurance basis under which the employees, the employer and the State itself will all be premium payers. I have said that the feasts of yesterday do not satisfy our hunger today, but it is wholly possible to set some portion of yesterday's feast aside in cold storage,,.as it were, to satisfy tomorrow's hunger. It is, of course, worthy of note that one of the largest corporations within the State of New York has, recently, of its own free will set up a plan which, in effect, is unemployment insurance. Let me clear your minds of any doubt as to my attitude toward prison labor, in view of certain grotesque misrepresentations of my position which were yesterday set forth to you. No one more clearly realizes the evil of competition of prison labor with free labor than I. The best proof of how seriously I regard this matter is that I have added to the State-created Prison Commission a 9224

Page  225 Hours of Labor for Women and Minors Governor's Sub-Committee to consider how we may keep our prisoners employed without competing with the labor of our free workmen. I did this because I felt that otherwise this question, which for years has troubled all penologists, might be ignored or scantily considered as it has been in the past. On this committee I have already named a man and a woman representing organized labor in the State of New York., your President, John Sullivan, and Miss Rose Schneiderman of the Women's Trade Union League, and I have asked President Green to nominate to me a representative of the American Federation of Labor as an additional member. It is almost unnecessary for me to add that I am wholly and irrevocably opposed to letting one State dump its prison-made goods on the free markets of another State.... 4 4 (1The Governor Approves a Bill Regulating Hours of Labor for Women and Minors. April 20, 1931 MEMORANDUM filed with Assembly bill, Int. No. io86,, Pr. No.,2803, entitled: "AN ACT to amend the labor law, in relation to the hours of labor of women and minors." APPROVED. THIs bill establishes for the first time a basic schedule of hours which will give to those working under it a really enforced protective measure. The only departure from this schedule- for which the bill provides is six additional hours, twice a year., for the sole purpose of taking inventory. A certain amount of flexibility is introduced into the working day and week by providing for ten additional hours during the year, which the employer may use as he needs them, in addition to the regular scheduled daily and weekly hours. But equivalent time off must be given for any time thus used so that no really additional working time is imposed by this provision. An alternative schedule to the six-day, forty-eight-hour week is 225K

Page  226 Hours of Labor for Women and Minors provided for which offers the advantage of a regular, steady halfholiday each week in return for a strictly limited amount of overtime. This principle of the weekly half-holiday is a recent development of the movement for the shorter work week -one which the working women themselves prize highly and for whose inclusion in the present bill they vigorously strove. It is my definite conviction that a desirable social policy, already largely a custom in industry, is thus given the sanction of law and encouraged to develop, while at the same time the underlying principle of a limitation based on the eight-hour day is preserved. The bill contains a- clause requiring that no overtime employment shall be permitted until at least four hours after a copy of the notice shall have been delivered to the Commissioner. We believe, and our legal advisers agree, that this is a great step forward in enforcement. Heretofore, the provisions of the law have been such as to make it impossible to require the records (or notices) necessary for effective enforcement. The new amendment puts the burden of delivering this notice on the employer. I believe that in this wise we shall get a check by means of which we can greatly diminish the illegal use of overtime. The bill is an agreed measure, the fruit of long negotiations between the merchants and the women's organizations favoring hours regulation, and is believed by all of them to embody sound and fair provisions and to represent a forward step. I have been much impressed by the advantages implicit in such a negotiated measure both for the future improvement of conditions in this industry and as an example for other industries to follow. A large number of mercantile establishments have written me asking me to approve this measure. For all of the above reasons, I am approving the bill. 226

Page  227 A Shorter Work Week 45 (The Governor Endorses a Shorter Work Week as a Means of Relieving Unemployment. August 25, 1932 Dear Mr. Sullivan: I AM glad that the State Federation is endorsing the movement for shorter hours or a shorter week as a means of relieving unemployment. I believe that at this time this is a factor in any relief program. It means the making of additional jobs by fewer hours of work per man. This can be done through agreements between industrial workers and employers to put into effect immediately either a short work day or a short work week, whichever is best adapted to the particular industry. Additional workers could thus be taken on proportionately to the shortening of the working hours. Room could be made for at least 1o or 15 percent more people in most of the plants which are at present in operation. The beneficial and wholesome effect of this method of relief would be very great. I believe it is essential that definite steps be taken at once. I am addressing this message to my friends of the New York State Federation of Labor in order that it may be communicated to all the groups and trades represented in your body. I am also making this message public with an expression of the hope that it will be read and accepted and adopted by the hundreds of employers throughout this State. A concerted effort in recognition of their mutual interests by employers and employees alike will, I am confident, bring practical and necessary results. Mr. John Sullivan, President, State Federation of Labor, in Convention at Hotel Martin, Utica, N. Y. 227..

Page  228

Page  229 vii Regulation of Public Uti~lities INTRODUCTORY NO TE: Asi STATED in my note to Chapter IV on water power development, the subject matter of this chapter is closely bound to the other. The objectives of a proper public power development policy and the objectives of an adequate regulation and supervision of public utilities are the same. In my Inaugural Address of 1929, in discussing the development of the water power resources of the State (see Item 13 of this volume), I pointed out that regulation by public service commissions is not always a sure guarantee of protection of the interest of the consumers. In my message of March 25, 1929, I recommended the creation by the Legislature of a public utility survey commission to study the question of public utility regulation and the reasons for its breakdown in recent years, and to make recommendations as to a proper and adequate system of regulation (see Item 46 of this volume). Pursuant to that recommendation the Legislature created such a commission and I approved the legislation on April 16, 1929 (see Item 47 of this volume). This Commission on Revision of the Public Service Commissions Law consisted of nine members, six of whom were members of the Legislature and only three of whom were appointed by me. On June 29, 1929, having in mind the problem of transmitting the hydro-electric power to be developed on the St. Lawrence River (see Chapter IV, this volume), and realizing that the State would have to deal with the Niagara-Hudson Power Corporation, which was about to be formed by a contemplated merger of three great power systems covering most of the State of New York, I requested the then Republican Attorney General, Hamilton Ward, to investigate the proposed merger to determine whether it was a violation of the anti-monopoly laws of New York State. The Attorney General replied on July 12, 1929, 229

Page  230 Note: Regulation of Public Utilities in a long discursive report which avoided stating any conclusion. I asked him again on July 26, 1929, for a definite opinion; and his reply on July 29th expressed the opinion that the proposed merger did not constitute a violation of any State law. (See The Public Papers of Governor Franklin D. Roosevelt, 1929, pages 560-581.) It is interesting to note that my misgivings about this merger which would create a practical monopoly in certain parts of the State, so far as negotiations with the Power Authority were concerned with respect to transmission of St. Lawrence current, were later fully justified. As appears in the note to Chapter IV of this volume, the Power Authority subsequently reported to me its difficulties in dealing with the Niagara-Hudson Power Corporation; and as a result, on February 15, 1932, I requested the Legislature to enact legislation to permit the municipalities to build and operate their own plants for the purchase and distribution of St. Lawrence power (see Item 37, this volume). The commission appointed in the previous year to investigate the ineffectiveness of public utility regulation made its report in February, 193o. The report was almost unanimous in acknowledging the breakdown of such regulation, and in pointing out that complicated and outworn valuation procedure was in large measure responsible for the failure. There was, however, no unanimity in the matter of recommendations. The legislative representatives on the commission submitted a majority report, and my three appointees submitted a minority report. The more important conclusions in the minority report were as follows: 1. The public service commissions law was designed primarily as a means of protecting the interest of the public in good service and reasonable rates. 2. Conclusive evidence showed that these objects of public service commission regulation had not been attained. 3. The commission's acceptance of a judicial rather than an administrative point of view had been an element in this failure. 230

Page  231 N~ote: Regulation of Public Utilities 4. The prime responsibility for the ineffectiveness of regulation rested squarely with the prevailing legal system of rate-making on the basis of valuation of property, subject to review both as to law and as to facts by the Federal Courts. 5. The public service commission, the evidence showed, felt obliged to sanction rates which could not possibly be justified economically. In fear of court reversal the commission had, in large part, been compelled to surrender to the utility companies the right to charge whatever rates the conditions of their business and the monopoly character of their enterprise could support. 6. The reproduction cost theory was the latest device of the companies for undermining regulation along the old overcapitalization lines. Over-valuation is the modern form of over-capitalization. 7. The electric rate situation in New York State afforded concrete evidence of the extent to which the consumer had been practically abandoned to the charges of the corporations. 8. Three holding companies, which dominated the State, had played an important part in the breakdown of effective regulation, introducing problems of over-capitalization and inter-company transactions over which the law gave the State no effective control. 9. Municipal competition, whenever attempted, revealed a measure of success in attaining what regulation had failed to provide for the consumer. The minority report recommended: 1.--Establishment of the prudent investment principle as the public policy of the State for purposes of rate control. 2. Revision of the uniform system of accounts so as to make possible the fixing of rates on the basis of actual and proper costs. 3- Publicity for all facts necessary to give the public a clear insight into the justice of rates and profits. 4. Authorization of municipalities to build their own electric plants and distribution systems, and to acquire private systems by agreement or condemnation.

Page  232 Note: Regulation of Public Utilities 5. Authorization of municipalities to join in creating power districts for joint ownership and operation of such systems. Thirty-four bills were introduced to carry out the majority and minority reports. The four bills based on the minority report were defeated; twenty-six of the majority bills after considerable modification were passed. My action on the bills which were passed is set forth in Items 49, 51, 52, 53 and 54 of this volume. In the memoranda on approving or vetoing these bills I also endeavored to lay down a simple program for dealing effectively with the weaknesses of present-day utility regulation which had been exposed by the commission. Important parts of this program as indicated in these items are: (1) a change in the conception of a public service commission as a quasi-judicial body; (2) a new principle of valuation for rate-making on a prudent investment basis; (3) a new treatment of holding companies; (4) insistence upon an accurate uniform system of accounting; (5) provision for municipal ownership and operation of utilities as yardsticks for reasonable rates. In 1931 and 1932 I continued my efforts to obtain an adequate system of regulation of public utilities in the interest of the consuming public (see Items 17 on page 106, 56 and 57 of this volume). During the 1932 campaign for the Presidency, I discussed the problem in my speech at Portland, Oregon, September 21 (see Item 138, this volume). In addition to the documents included in this chapter, reference is made to the following items not printed in these volumes: Communication to the Chairman of the Public Service Commission with respect to proposed increase of telephone rates. January 27, 1930. Public Papers (1930) page 487; Memorandum re bill in relation to jurisdiction of public service commission over small telephone companies. April 25, 1930. Public Papers (1930) page 298; Message re supervision over bus companies and water companies. April 1o, 1931. Public Papers (1931) page 165. 232

Page  233 46 (A Recommendation for the Creation of a Commission to Study Public Utility Regulation. March 25, 1929 To the Legislature: HOPE that before your Honorable Bodies adjourn you will authorize the creation of a non-partisan commission to make a thorough study of the whole subject of the public utility field. This study should be so comprehensive as to include not merely regulation, past, present and future, by the Public Service Commission, but also other methods of supervision such as the application of the principle of contract approval by a public body as distinguished from straight rate regulation. 47 (The Creation of a Commission to Study Public Utility Regulation. April 16, 1929 Memorandum filed with Senate Bill, Int. No. 986, Printed No. 187o, entitled: "AN ACT to create a temporary commission to make a thorough survey, examination and study of the public service commission law, in relation to the operation and the effect thereof and to propose remedial or other legislation in relation thereto, and making an appropriation for the expense of such commission." APPROVED. WHILE I was hopeful that the Legislature would create a smaller commission for the purposes of making this survey, I am approving this bill in order to have the investigation started. I am convinced that the present public service commissions law is in need of great amendment and I hope that this survey will be instrumental in recommending legislation to provide for a more efficient and just supervision and regulation of public service corporations and allied companies. Further, the whole principle of guaranteeing to the people a fair rate for the use of services provided by private corporations ought to be restudied. The theory of twenty years ago that the return to public service corporations should not exceed a fair profit on the money actually invested is 233

Page  234 Federal Courts and Public Utility Rates constantly and flagrantly violated. Some method must be found to return to the original principle. There is an overwhelming demand for practical, definite and immediate action. For the above reasons, the bill is approved. 4 8 (fRecommendation for a Memorial to Congress on the Power of Federal Courts with Respect to Regulation of Public Utility Rates. January 27, 1930 To the Legislature: THE recent decision of the Federal court in the southern district of New York, permitting the New York Telephone Company drastically to raise its telephone rates, brings to the fore in a striking way the whole question of interference by the United States courts with the regulatory powers of our Public Service Commission. Time and again we have seen utility companies rush into the Federal courts to obtain injunctions against State commissions. Although State courts are open to them, they have refused to accept State tribunals, but instead have sought the aid of Federal judges. I consider such action to be contrary to, sound theories of government and an improper encroachment upon State home rule. The control of local rates is a matter of purely State concern. The acts of State boards and commissions should be subject in the first instance to an orderly appeal by a telephone or other utility company to the United States Supreme Court after the State Court of Appeals has passed upon the question. But the system of two concurrent original jurisdictions from which the public utility may at will choose its forum is contrary to our sense of orderly administration of justice, as well as our concept of local self-rule and self-government. The people of our State are more and more resentful of the

Page  235 Federal Courts and Public Utility Rates assumption and retention of jurisdiction by Federal judges. We have had many examples in electricity, gas, telephone and subway cases. It means that hearings and trials which rightfully should be held before our Public Service Commission or before State courts are, by a scratch of the pen, transferred to a special master appointed by the Federal court. The State regulatory body, set up by our law to inquire into matters of valuation, depreciation, operating expenses and other factors entering into rate-making, is laughed at by the utility seeking refuge with a special master, who is unequipped by experience and training, as well as by staff and assistants, to pursue that searching inquiry into the claims of the company which the consuming public is entitled to demand. The special master becomes the rate-maker; the Public Service Commission becomes- a mere legal fantasy. This power of the Federal court must be abrogated. Only the Congress can- give the remedy. Legislation has been introduced in the Congress to carry out this purpose and the bill is now before the judiciary Committee of the Senate. I recommend to your Honorable Bodies that you memorialize the Congress to pass this legislation. I believe that an enlightened public opinion earnestly asks some action by the Congress in the interest of the consumers of gas, electric light and transportation, telephone and other public utility service. Your Honorable Bodies can properly inform the Congress of the United States of the ever-growing demands of our residents for relief and for the prevention in the future of practices which are inconsistent with the American form of government. 235

Page  236 Veto of Bill for a ""People's Counsel"" 4 9 (TThe Governor Vetoes Bill for a "People's Counsel" for Public Utility Hearings. April 22~,1930 Memorandum filed with Senate bill, Int. No. 1429, Pr. No. 1659, entitled: "AN AcT to amend the public service commissions law, in relation to creating the office of people's counsel." NOT APPROVED. THis bill provides that the Attorney-General shall appoint in his department an attorney, to be known as "People's Counsel," to be charged with the special duty of representing the public before the Public Service Commission at public utility hearings. The entire purpose of this bill is based upon a fundamentally false conception of the proper function of a public service commission. Public service commissions were originally adopted, in this and other States, for the purpose of carrying out certain duties in connection with utility companies theretofore performed by the various legislatures. These duties, in essence, are to see that public utility companies furnish to the consuming public adequate service at fair and reasonable rates., and to protect legitimate investors in utility securities. The Public Service Commission has taken these legislative functions over. It is not, and never has been, merely a court. It is rather intended to represent the public interest in connection with various industries of a semi-public character subjected to its jurisdiction. The very nature of the businesses under their control renders inoperative the ordinary controlling force of competition; therefore, the State has provided this machinery to protect the public from the evils which would inevitably follow from the granting of monopolistic privileges. Many people think that the Public Service Commission of New York State in recent years has not measured up aggressively to these standards; that this is proved by statistics showing a decrease, in the number of instances in which the Commission has initiated rate cases since 1923.- In a great many cases it is alleged that consumer complaints have not aggressively been followed up. -23f6

Page  237 Veto of Bill for a ""People's Counsel" This decline in effectiveness is shown very clearly by the minority report of the Commission on Revision of the Public Service Coinmissions Laws at pages 68 to 74. I believe, however., that recent changes in personnel, and additional appropriations for the Commission may be expected to correct this tendency. The testimony before the revision commission shows that whatever sentiment was developed in favor of a "People's Counsel"t was due entirely to the recent letting down of commission activities in connection with these functions. The duty and function of the Public Service Commission can never remain in doubt. It can never be transferred to an individual as a counsel..0* Indeed., the entire testimony before the revision commission tends to emphasize the unmistakable fact that the function which this bill aims to transfer to the Attorney General's office is really the function of the Commission itself. The bill would divide this responsibility for protecting the public. It would in effect reduce the Public Service Commission to the role of a mere utility court in which the people would have to fight their unequal battle against the huge resources of public utility corporations. The functions of the "People's' Counsel" provided for in this bill should be exercised by the Commission through its own counsel., assistant counsel, or any other employees whom it wishes to designate therefor. I hope that the present Public Service Commission will more and more undertake on its own initiative to institute rate and service proceedings. It should not rely on the complainant's, but on its own efforts, to establish proper protection for the public. The idea of a "People's Counsel" as intended by this bill is antagonistic to such an attitude on the part of the Commission. Without the help of engineers and accountants a lawyer can accomplish little because the questions involved are almost always non-legal. The bill provides that the proposed "People's Counsel"t shall have the assistance and cooperation of the staff of the Public Service Commission. This is destructive of efficiency and respon-ý sibility, for no staff can work simultaneously for two masters. The bill is disapproved.

Page  238 Address on Public Utility Regulation 50 ~ Radio Address on Public Utility Regulation. April 23, 1930 'WHEN history is written the Legislature of 1930 will always be remembered as having taken one great step and opened the door toward another great step. The first was the passage of the law authorizing me to appoint a commission to use every effort to bring in a plan for the development of our electrical resources on the St. Lawrence under a State agency, rather than by a private corporation. I have spoken several times before of the details of and reasons for this important State policy. I refer to it tonight only because it has a somewhat close bearing on the general subject of cheaper electric light in our homes and I hope that you will bear the fact of the St. Lawrence policy in mind when you discuss the even broader subject of the State's general policy toward what is known as public utilities. Let us go back about fifteen months. Early in 1929, there was general agitation in many parts of the State over what was considered by many to be the failure of the Public Service Commission to function as it had been intended to function when it was first established under the administration of Governor Hughes in 1907. At that time, twenty-three years ago, Governor Hughes, fortified by his experience in the astounding revelations of the insurance investigation, obtained from the Legislature the warrant to create a Public Service Commission which was intended to supervise the activities of utility companies of various kinds. UP to 1907, the Legislature itself had from year to year sought to supervise utilities by stating maximum rates, an unsatisfactory system which resulted in log-rolling, lobbying, and actual bribery in the legislative halls. Governor Hughes and everybody else in 1907 recognized without question that there i's a very great distinction between wholly private industrial companies dealing in commodities like steel or shoes or clothing or groceries or flour or automobiles or farm implements or running department _38

Page  239 Address on Public Utility Regulation stores, and on the other side, semi-public corporations dealing in services to the public such as gas, electricity, street cars and the like. In other words, services which might and probably would result in monopolies. There was no question that the State had the absolute right not merely to regulate these public utilities and to supervise their methods of carrying on business, but also to give or deny to them the right to get charters except upon terms laid down by the State. The Public Service Commission, therefore, was created in the days of Governor Hughes to act not as a court as between the public on one side and the utility companies on the other but to act definitely and directly for the public, as the representative of the public and of the Legislature, its sole function being to supervise the utilities themselves under definite rules. That is a very clear statement of the common law principle which goes back hundreds of years in the civilization from which we spring. Keep that distinction in mind when I speak of the next events. Gradually from 1907 on there has come about a forgetfulness of the Public Service Commission's primary function. Gradually the commission had come to consider itself more and more as a court and many of the public had come to think of a utility company as very similar to any corporation engaged in private business as distinguished from public service. As a result of the agitation early in 1929 a commission was appointed consisting of six members of the Legislature, and three people appointed by me. This commission held extensive hearings last autumn and until March 1 this year. The six legislative members brought in last month a series of over thirty bills. Let me tell you first what these bills sought to do. All but ten of them may be dismissed with the simple statement that they are of distinctly minor importance, chiefly minor changes in language and in the Public Service Commission procedure. Of the other ten bills which were of some importance, one gave authority for the first time to the Public Service Commission over holding companies; one bill proposes a new method of appeal to the Appellate Division by companies which are not satisfied with the Public 239

Page  240 Address on Public Utility Regulation Service Commission rate-making; one bill creates a Bureau of Valuation and Research; and another seeks to set up a People's.Counsel in the office of the Attorney-General. The bill to create a so-called People's Counsel, I vetoed yesterday on two very simple grounds. The first is that the Public Service Commission itself should act as the People's Counsel and should be given all the legal, engineering, and accounting assistance possible to this end; and the second, that there would be a division of responsibility if both the Attorney-General's Office and the Public Service Commission were charged with the protection of the people's rights in utility matters. All of these five bills passed both houses of the Legislature., but two others extending regulation got lost between the Senate and Assembly during the rush of the final night session and did not pass the lower house. These were the bills to provide for regulation of private water companies and of the practice of sub-metering electric light to tenants of large buildings. I wish that the public and I could some day learn the true story of where and how these bills got lost. I think it would make interesting reading. It is greatly to be regretted that the Public, Service Commission was not given authority over private water companies, because though few people realize it, a very definite drive is now being made by promoters and others to buy up private water companies and even the municipally-owned water companies in many parts of the State in order to create new holding companies and permit them through their financing arrangements to be turned into gold mines for the promoters, even though they are not always gold mines for those who buy the stock. Now we encounter the meat in the cocoanut; and here is where my friends in the Legislature made what I honestly and sincerely believe to have been a very grave error of judgment and a very grave failure to understand the overwhelming public demand for laying down a clear and well-defined State Policy about utility companies and their rates. I refer to two bills introduced by the Legislative members of C%40r

Page  241 Address on Public Utility Regulation the investigating committee, the valuation bill and the contract bill. The first, when introduced, proposed a definite valuation by the Public Service Commission of all of the utility companies of the State over a period of years, but did not set up in any way any policy or clear-cut definition of how the valuation was to be made. The purpose of valuation is, of course, to find out how high or low the rates charged to consumers should be in order to give the utility company a fair profit. I objected to the bill from the beginning, because it failed to set up any distinct standard for the valuation. In'the closing days of the session, the bill after protest by the utility companies was amended by the legislative leaders by making the so-called valuations wholly discretionary, thereby pulling out the few remaining teeth in the bill and making it, in my judgment, absolutely valueless and ineffective. The other bill, also weakened in the closing days of the session, is equally a mere gesture by the Legislature, and I do not think it is worth the paper it is wri 0tten on or the cost of having it printed. It represented originally a half-hearted attempt to provide for voluntary contracts between the Public Service Commission and the utility companies by which a company might come to some kind of agreement on valuation, this to hold good for ten years. It was perfectly -clear at the hearings that the utility companies would not enter into any such contracts, unless they could get what they thought were wholly satisfactory rates and there was nothing to compel them to make the contract. It was, indeed, stated that they had no intention of making any contracts with the Public Service Commission whatsoever. This bill in the closing hours of the Legislature was practically strangled and the new bill substituted, providing that municipalities may, if they can - and let me stress the words "if they can" - make ten-year rate contracts with the utilities doing business within the municipality. There is nothing new in this provision. It has been tried out in the past with street railroads and has proved practically useless. This bill is also a mere gesture and means less than nothing at all. The above is a simple statement of the way the mountain la241A

Page  242 Address on Public Utility Regulation bored and brought forth a mouse., and this in spite of the fact that nearly one hundred thousand dollars has been spent trying to provide some really useful legislation. Nevertheless I feel that the money and the time have not been wholly wasted, because more and more people are taking a greater interest in the whole subject of public utilities and the greater the discussion., the more the public will realize that the time is at hand for this State, and most of our sister States, to take definite and positive action. The three minority members of the investigating commission, in the hearings and in their recommendations, went to what is really the root of the public utility problem. They pointed out the simple truth that the major problem of restoring proper supervision of utilities centers around the question of valuation for rate-making purposes. The question is whether the great utility companies are under present methods rendering regulation ineffective by insisting they are entitled to profits rated on inflated valuation of their properties and by starting long drawn-out controversies in the courts when they do not like the rates granted by the commission. The minority report signed by Commissioners Walsh, Bonbright, and Adie is a model of clarity and will for many years be used as a kind of text book throughout the United States. They say that the only way to get anywhere so as to assure reasonable rates for electric light, telephone and similar service is to set up by statute a definite declaration on the part of the people of the State who grant the charters under which these companies operate., making it clear just what elements can be used to set up the rate base, these elements being composed essentially of the actual cost of the necessary properties, namely, the actual cash put into the utilities by investors. Such a rate base becomes fixed and on this rate base and no other, a reasonable rate Of return should be allowed to the utility. Take a simple example. Suppose a new electric light and power company is organized to serve a given territory and that the cost of developing the power, transmitting it, and distributing it to 24 A

Page  243 Address on Public Utility Regulation the homes and industries of the region is one million dollars. Under the definite plan proposed by the minority report this million dollars would be raised, let us say, by bonds which would be entitled to the actual rate of interest on the bonds, say 5 percent, in part by preferred stock which would be entitled to the actual rate of interest, say 6 percent, and in part by common stock which would be entitled to, say, 7 percent or 8 percent. This would mean that the rate would have to be high enough to pay this interest on these dividends, say an average of 6 percent or the total of sixty thousand dollars profit to the company in the first year. The Public Service Commission would also allow an annual sum to retire the bonds, so that the net result, if the bonds ran, say for thirty years and amounted to one-half the financing, the capital of the utility company at the end of thirty years would be only one-half a million dollars because the bonds would be retired. In other words, at the end of thirty years the public in paying for this electric light and power would only have to pay enough to give about thirty-five thousand dollars of profit to the stockholders of the utility company. Now let us see what is done by some utility companies operating under the present laws, or rather lack of laws. The same company in the same territory capitalized for one million dollars gets the same part of this capital through the issue Of 5 percent bonds, through 6 percent preferred stock, and by 7 percent or 8 percent common stock, but it demands at once that it be allowed a 7 percent or 8 percent return on the whole million dollars. This means that it is getting 12 percent., 14 percent or i6 percent on the common stock, and this common stock is usually held by the v insiders in the company. Next under existing laws, the company fails to retire a portion of the bonds each year so that at the end of thirty years, the life of the bonds, they are refunded by issuing new bonds and running them another thirty years. Thus, the public has to continue to pay for all time on the original capital structure. In this example, the public would be paying at the end of thirty years from sev

Page  244 Address on Public Utility Regulation enty to eighty instead of thirty-five thousand dollars under the bond retirement principle. But, this is by no means all. In many cases in the United States, through the mysteries of so-called accounting, companies have been allowed to set up each year very large depreciation reserves and instead of having these depreciation reserves deducted from the original cost of the plant, the depreciation reserves have been actually added to the capital structure. Bear in mind that this depreciation reserve is paid for out of the monthly bills which are sent to you., the consumers. This method may mean very easily that at the end of thirty years a depreciation reserve may amount to one-half the original investment cost so that you are paying a profit on one and one-half million dollars instead of a million dollars. But still this does not tell the whole story. Under the lack of a plainly-stated policy by the State Governments as to what the rate base shall be, the Supreme Court has gradually allowed large additional amounts to the rate base, based on what it would cost to reproduce the plant anew after many years have elapsed. This means that if a dam or power house actually cost only one-half million dollars when erected twenty years ago, it would now cost,twice that amount to reproduce. The utility company could add one-half million dollars to this rate base, a straight out and out gift of that amount to the utility company stockholders. Suppose then, that in the case of our million dollar utility company, onehalf million dollars were added by this wholly illogical depreciation reserve addition, and another one-half million dollars were added by the reproduction of plant theory, even though the old plant continued to be operated, we would have a rate-base -of two million dollars instead of a rate base of one-half million dollars under the proposed investment theory. Put it another way. On two million dollars the users of electricity in our homes would have to pay 7 percent or 8 percent or one hundred and forty thousand dollars to one hundred and sixty thousand dollars a year of profit to the company instead of thirty-five thousand dollars a year under the proposed new set-up. 0%44

Page  245 Address on Public Utility Regulation It is perfectly evident that the difference between thirty-five thousand dollars and one hundred and forty thousand to one hundred and sixty thousand dollars means not only much higher electric light bills to the consumers but also profits to the original common stock investors which would be not 7 percent or 8 percent on their investments, but anywhere from 25 percent to 50 percent. That is why I am insisting that this State should return to the original theory of granting a reasonable return and only a reasonable return to the owners of utility companies.... The straight question for you and for me to ask is whether we are going to return to the three-hundred-year-old distinction between a company engaged in wholly private business and a company engaged in a monopoly of a service which must be used by all of our citizens, rich and poor alike, a monopoly which exists by the grace of you and me through the charters which we, as the people, have granted. There are two methods of restoring reasonable rates for electricity and telephones in this State, and I say advisedly that I consider the rates charged to householders for these commodities are today too high. Unless we act definitely and promptly they are going even higher. One of these methods is to allow and restore competition either by encouraging new companies to enter the field or by setting up at least as a yardstick more municipallyoperated companies, especially in the electrical field. I think it is an established fact that those municipalities in the United States which have their own municipally-owned companies providing the light and power for their citizens give just as good service and much lower rates than in almost any of the privately-owned companies. The yardstick of municipal operation is the question of success. Almost all of the municipallyowned companies are successful today, and the yardstick which they have furnished us proves that the rates of most of the privately-owned electric companies are too high. The other method which can well go hand in hand with the first is to give to the Public Service Commission a definite rule for 245

Page  246 Two Bills on Public Utility Holding Companies valuation and to make it obligatory on the Public Service Commission to fix rates in accordance with this definitely set standard and no other. Let me say that this is not and should not be a matter of politics. If it becomes such, it will not be through my action. Nevertheless it is an issue, and I hope that the two major parties will not line up on different sides of it. It is an issue between two schools of thought, between those who would return to the fundamental that a public utility is the creature of the State., that it must give service and that it can and should earn a reasonable return on the investment which it has made and no more. The other school of thought would have us believe that a public utility company is essentially a private business operated for service perhaps, but operated in such a way that through swollen valuations past, present and future it can make the public pay rates on two- and five- and tenfold the amount of money which was actually invested. 51 4( The Governor Approves Two Bills on Public Utility Holding Companies. April 94, 1930 Memorandum filed with following bills: Senate bill, Int. No. 1394, Pr. No. 2295, entitled: "AN ACT to amend the public service commission law, in relation to holding companies and the transactions between affiliated interests and public utility companies." Senate bill, Int. No. 1427, Pr. No. 1657, entitled: "AN ACT to amend the public service commission law, in relation to the disclosure of identity of the persons owning substantial interests in the voting capital stock of corporations under the jurisdiction of the commission." APPROVED. IN APPROVING these feeble bills, offered by the Legislature as its only solution to the pressing problem of dealing with the great holding companies which dominate the public utilities, I wish to emphasize my belief that they are entirely inadequate. I am approving them only as temporary expedients. If the State's right ^246

Page  247 Two Bills on Public Utility Holding Companies to regulate these essential industries is to be preserved intact, the Legislature must face squarely the necessity of extending real control over these super-utilities. The alleged control offered by these bills, when all the complicated provisions for its exercise are squeezed out, reaches only to certain contracts between utilities and affiliated interests. The bill in its original form provided that such contracts must be approved by the public service commission before they become effective. It is interesting to note that after the public utilities had strenuously objected to even this ineffective bill this provision as to contracts was further emasculated to provide that the contract need only be filed with the commission. It does -provide that later the Public Service Commission may disprove the contract but nothing is said about the result of any such disapproval. A real bill would have contained not only an express condition that the contracts be specifically approved, but would have given the commission plenary power to insist upon terms'and conditions most favorable to consumers of public service. In any event, as a factor in the inflation of consumers' bills these contracts are far less important than the excessive capitalization of the holding companies. This is what i 's so largely responsible for the tremendous pressure for higher valuation of the operating properties. This, the bill does not even attempt to meet. When the State first undertook to regulate the utilities it was dealing almost entirely with local operating properties. Today the situation has entirely changed. The State is dealing with great holding companies and many of the problems of protecting the small investor and the consumer now involve the operations of these mammoth corporations. The report of the counsel to the revision commission shows that in 1928 such holding companies controlled about 98.5 percent of all the electrical energy sold in New York State to consumers other than electrical companies. This means that consumers in New York State are -buying practically all their electricity from just three companies, the Niagara Hudson Power Corporation which controls 54.6 percent, the 247d

Page  248 Two Bills on Public Utility Holding Companies Consolidated Gas Company which controls 34.8 percent, and the Associated Gas and Electric Company which controls 7.6 percent. Such figures reveal the magnitude of the problem which the bills before me entirely fail to meet. The people of New York State cannot afford to have the actual control of their public services pass to a few companies which are beyond the reach of the public service law. The present crisis in utility regulation is due to a great extent to the failure to control holding companies. Without power over these, regulatory statutes are without teeth.... Regulation of the security issues of holding companies is the most important feature of control over them. This is not even touched upon in the legislation before me. Such regulation would mean protection to small investors as well as to consumers. The report of the counsel to the revision commission indicates that there can be no effective regulation of the securities of operating companies unless such control is exercised over the securities of holding companies. The report points out that such control "has been largely nullified by the ease with which operating company stocks could be placed in the ownership of holding companies and the securities of such holding companies sold to the public on a speculative basis." (Page 141.-) The speculative interests, which have been magnified in the utility industry by holding company operators, are diametrically opposed to the interests of both legitimate investors and consumers. It is bound to mean insecurity and increases in the cost of capital. It must, therefore, result in pressure for higher rates.. - The report of the counsel offers one suggestion which I believe should at least have been considered. It is that the provisions of the Public Service Commissions Law, now applicable to the issue of securities and acquisition of stock of operating utility companies, shall be equally applicable to the issue of securities and acquisitions of stock of every corporation which owns 50 percent or more of the voting stock of a utility corporation under the jurisdiction of the commission, and which may be found by the commission, after a hearing, to be actually dominating such operating r%48

Page  249 Two Bills on Public Utility Holding Companies company to such an extent as to be considered by the commission as engaged in public utility operation. The suggestion was thrown overboard. The critical nature of the problem is recognized in the majority report of the revision commission which says: "The domination of operating companies by holding companies may in some instances be so complete that the holding company is actually engaged in public utility operation, in which case it should be subject to regulation as a public utility corporation..9. The interests both of consumers and investors may be abused by the adoption of unsound financial practices by holding companies. We recognize and desire to emphasize particularly these dangers." (Page 297.) The majority., however, merely recommend that at some future time, after the completion of the Federal Trade Commission's investigation, further consideration be given to the problem. I believe that this attitude represents a surrender to the demands of the public utility interests. I believe that the evidence before the revision commission was sufficient to warrant immediate action. I hope that in the near future a free and untrammeled Legislature will deal with the critical problem of holding company domination with more courage and concern for the interests of the consumer. A constructive handling of the problem would certainly subject holding company financing to commission control, for it is increasingly through holding companies that the public participates in the financing of the utility industry. Protection of small investors requires such control and it appears to be the only way to prevent continued capitalization of the expectation of high rates. But I believe that the program must go even further to assert the Public Service Commission's full jurisdiction over any holding company which it determines., after hearings, is dominating operating companies so completely as to be actually engaged in public utility operation. It is with the hope that the near future will, see legislation 249 r

Page  250 A Worthless Valuation Bill along this line that I approve these measures which seem so hopelessly inadequate in the face of the magnitude of the problem. The bills are approved. 52,9 The Governor Vetoes a Worthless Valuation Bill for Public Utilities. April 24, 1930 Memorandum filed with Senate bill, Int. No. 1433, Pr. No. 2501, entitled: "AN ACT to amend the public service commission law, in relation to a state-wide valuation, by the public service commission, of public utility properties." Nor APPROVED. THis 'Valuation bill, as it is now before me,, is the fourth reprint of the bill as originally introduced. Its successive transformations have been drastic and in its final form it is an entirely different bill from that originally submitted. The introducer himself refused to vote for this bill on the ground that it was nothing like the bill for which he was responsible. I am disapproving the bill because it tends simply to perpetuate the present valuation muddle which all agree renders effective regulation impossible. I am disapproving it because it is distinctly contrary to the proper principles of valuation and, if actually and literally carried out, it would in all probability produce higher rates than those which now burden consumers of public utility services. The majority and minority of the revision commission agreed on the fact that revival of effective utility regulation depends upon a solution of the valuation problem.... The report of the counsel to the commission asserts that rate determination has been largely a matter of guesswork, and indicates that upon proper solution of the problem of valuation depends in large measure the future of public utility regulation. It indicates also the utter hopelessness of trying to secure proper regulation if there is insistence upon guesses at valuation according to lines laid down by the courts. The minority of the commission strikes the same note when it

Page  251 A Worthless Valuation Bill states that the greatest single weakness of the present system,, not only in New York State but in the entire country, lies in "the hopeless difficulties inherent in the use of a physical valuation of property as the basis of rate control." The minority points out that the court decisions in determining value have made regulation under existing law completely impossible. The plan suggested by the minority of the commission and proposed through bills introduced in the Legislature., provides the simplest approach to this major problem. It attempts to meet it by providing for a complete valuation of all utility properties in the State according to doctrines heretofore laid down by the courts only as a definite starting point. Thereafter all additions to the rate base would be on the basis of actual cost and no more. This would provide a definite and ascertainable rate base always available in the bookkeeping entries of the companies. It would guard against all future inflations. The majority of the commission recognized the advantages of this plan in terms of simplicity and definiteness but expressed the belief that it would be declared unconstitutional. Without seeking a test on this point, the Legislature brushed this plan aside without even discussing it and took up the original print of the valuation bill which is now before me. This bill originally provided that the Public Service Commission should make a valuation of all the utilities in the State in accordance with the court decisions. So far it followed the minority recommendations. But its fatal weakness was that it prov ided that this tremendously expensive process should be repeated from time to time and that regulation should never get permanently away from the unjust and impracticable present value basis. The evidence before the commission shows that no one has a clear-cut conception of the meaning of fair value, that no one can account satisfactorily for inconsistencies in its application in recent cases,, and that no definite standard exists with respect to such factors as depreciation, "going value," and the "treproduc

Page  252 A Worthless Valuation Bill tion" theory. It is inevitable that such indefiniteness in the very fundamental of rate control should produce constant controversy and litigation. The present value theory also offers a great inducement to companies to retain in service plant and equipment which have become obsolescent and inadequate. It promotes public utility speculation because of its indefiniteness..0* The recent New York Telephone Company case is a perfect example of the complete futility of regulation based upon so uncertain, so vague, and so flexible a standard of valuation. It has meant more than ten years of controversy. Even before the latest development it had produced about 63,000 pages of testimony and 4,300 exhibits. It has cost the company well over $5,000,,000, which has, of course., been passed on to telephone users in higher rates. The attempt to guess at the fair value of the company's property in 1926 resulted in six different conclusions, ranging all the way from $367,000,000 up to $615,000,000. The telephone company itself produced two different guesses, about $ ioo,ooo,ooo apart. The bill as originally introduced would have deliberately perpetuated these absurdities. The bill in its final form offers no way of escaping them. The present breakdown of regulation cannot be corrected without laws which make possible the fixing of a definite rate base determinable by definite rules of policy and of accounting rather than by guesswork. The only solution is to get on an actual cost basis. As I have already noted, the proposals submitted by me to the Legislature would have provided for a natural transition to such an actual cost basis. While additions to the original valuation would be on a cost basis, the initial valuation itself would be gradually worked out of the rate base through depreciation and retirement. In the end certainty and fairness would be substituted for the present absurdity.. o. In contrast, the bill which I have before me does nothing to remove the evils of the present system. It practically gives statutory sanction to all that is unjust, unworkable and absurd in the present situation.

Page  253 Twenty Public Utility Regulation Bills This bill is a complete acknowledgment of failure to meet the outstanding problem of regulation. It was passed during the last hours of the session in a form that was not even printed, so that few of the legislators voting on it really knew its contents. It tends to perpetuate a system of regulation which does not regulate. It is not based on any recommendation of the revision commission and can find no substantiation in the evidence submitted before the commission. The bill is disapproved. 53 (The Governor Approves a Batch of Public Utility Regulation Bills. April 25, 1930 THE twenty bills dealing with the provision of the Public Service Commission Law, which I am approving with this memorandum, reveal clearly the failure of the Legislature to attack the main issues presented by the existing lack of effective supervision. They bulk large in point of quantity in the utility legislation passed in the session. But as I review them I wonder whether meticulous attention to the correction of typographical and verbal inaccuracies in the law did not distract the attention of those who wrote them from the crisis in the State's control of its huge utilities. Many of these bills are too unimportant to require mention. But three groups of four bills each warrant a brief word because they reveal how bills which carry a significant title may be enacted in a form which really represents no material gain to consumers. The first group (Senate bills, Pr. Nos. 2290, 2296, 2298 and 2328) aims to close up certain gaps in the commission's control over the acquisition of stock in the operating companies under its jurisdiction and to give legislative sanction to the commission's practice of not consenting to such acquisitions unless they are shown to be in the public interest. These bills add little to the broad authority already exercisable by the commission in this 253

Page  254 Twenty Public Utility Regulation Bills field and, in view of the recent consolidation of the utility industry under holding companies, look very much like locking the gate after the horse has been stolen. The second group (Senate Pr. Nos. 2297, 2299, 2300 and 20301) makes certain minor changes in the commission's control over the financing operations of utilities. But two of the most important recommendations of the majority, which were embodied in the original bills, were deleted in the present bills in response to protests by the utilities. One of these provisions, which was omitted in the final draft of these bills, would have meant a real extension in the commission's authority. It provided that a utility company must secure commission approval for all short-term loans in excess Of 5 percent of the value of its outstanding securities. According to evidence gathered by the revision commission, these short term loans now afford the corporations a method of evading the commission's control over new construction financed by regular security issues. These short term loans, in the leading holding company groups, are very extensive and should be brought under more effective control. The third group (Senate Pr. Nos. 2302, 2303, 2304 and 2307) places the burden of proof on a corporation to justify the account in which an item is entered, if questioned by the commission at a hearing. This provision was weakened by changes before it was finally passed by the Legislature and adds little to the broad authority of the commission. The majority bills do not touch the really important extension of accounting control which would make mandatory a uniform system of accounts designed to present a clear-cut cost picture for all classifications of the various services. Such an accounting system would serve as a basis for intelligent rate control. Under the present system the small consumer is paying more than his share of the profits. In concluding this brief comment on the large assortment of unimportant bills, I wish to remark on the fact that the failure of this whole legislative program is due to the false foundation on C%5 4

Page  255 Twenty Public Utility Regulation Bills which it rests. The majority and minority split was really fundamental. The majority program, embodied in these bills, rests on the theory that the utility company lions can be charmed into lying down with the consumer lambs. The minority says that without State authority capable of curbing the carnivorous impulses of the lions, the lions are more likely to lie down only with the lambs inside. In other words, the majority hopes that utility companies, which have treated regulation in the past as an unwarranted invasion of their rights, will alter this attitude and agree to accept a more elaborate and harassing invasion of those so-called rights. The minority, on the other hand, recognizes that effective regulation has always meant coercion, an exercise of the authority of the State. Consequently, it proposed legislation which would curb the impulses to evasion and force the utility companies to live within the regulatory system. The weight of evidence gathered by the revision commission shows the absurdity of putting any faith in the willingness of big utility corporations to give up gains. In fact, the attitude of the utility representatives at the Senate committee hearing showed beyond contradiction that they regard themselves as entirely private enterprises, that they are ready to oppose any attempt to assert the public interest. The majority legislative program before me, in these bills, is ineffective. It is complicated. Its weakness lies in the attempt to get around the issue without -meeting it squarely. The effectiveness of the minority program, on the other hand, is obvious from the utility opposition it has aroused. It can be summed up in three points: 1. Assertion of the State's determination that the return to which owners of privately owned utilities are entitled shall be the original cost of the property used and useful in the public service, as shown by their books. 2.Establishment of a uniform system of accounting which will

Page  256 Another Worthless Bill make available accurate unit cost analysis of all classes of service, such as any modern corporation in competitive industry would insist upon. 3. Provision for municipal ownership and operation of public services on a referendum vote of their citizens expressing their desire to undertake such enterprises. This provides the keen spur of competition so necess~ary to induce the privately owned utilities to accept effective regulation. I believe that legislation along these lines would make it possible to reduce rather than increase the complexity of the regulatory machinery. I believe that it would eventually relieve the people of a considerable proportion of the burden of expense incidental to regulation and would permanently lift from the backs of consumers the burden of protracted rate controversies. I believe that it would provide the shortest possible road to reasonable rates readily ascertainable. I am approving this large assortment of relatively unimportant utility bills in the belief that they may prove of some temporary advantage pending the adoption by a far-sighted Legislature of a truly effective program along the lines which I have indicated. 54 (I The Governor Vetoes Another Worthless Bill for Contracts between Municipalities and Public Utility Companies. April 25,193 Memorandum filed with Senate Bill, Int. No. 1599, Pr. No. 2502, entitled: "AN ACT to amend the public service commission law, in relation to contracts between municipalities and public utility companies." NOT APPROVED. Y ESTERDAY I vetoed Senate Bill, Int. No. 1433, Pr. No. 2501, entitled, "An act to amend the public service commission law, in relation to a statewide valuation, by the public service commission, of public utility properties," on the ground that it was an 256

Page  257 Another Worthless Bill ineffective and useless piece of legislation which did not improve regulation of utilities in any way. I pointed out that it would tend to perpetuate all of the features of regulation which have caused the present breakdown. Today I am disapproving the contract bill on the same grounds. It represents a poor little last-minute effort to deal with the major problem confronting the State in this field of regulation. Nothing indicates more clearly the utter futility of the bills passed by the Legislature than this ridiculous bill, which provides merely for optional contracts between municipalities and the utility companies which serve them. Such contracts may be made, with the approval of the commission, providing that for ten years rates shall be adjusted in accordance with the excess of revenues over and above all necessary costs, including depreciation and return on the value of the property. The bill is the third reprint of the bill as originally introduced. It is so completely different from the original draft that even the introducer of the bill refused to vote for it, stating that he could not recognize it as his own. The original bill provided that any public utility could enter into a contract with the Public Service Commission fixing for a period of ten years the basis of rate adjustment. Such contracts were to be purely voluntary, with the utilities able to enter them or not according to the dictates of self interest. In spite of this obvious bias in their favor, the utilities opposed the bill before the committees of the Senate and Assembly, and' it was thereupon amended so as practically to emasculate it. When it was found that, even in this emasculated form, the bill could not obtain sufficient votes to pass the Legislature, it was finally exchanged for the useless piece of paper now before me. It was passed in this form without even being printed. This bill, more than any other, shows the complete bankruptcy of the entire program of the majority of the revision commission for meeting the existing crisis in public utility regulation. In its original form it left it completely to the willingness of the utilities r%57J

Page  258 Another Worthless Bill to enter into the contract or not as they choose. In its final form it makes no pretense at lifting the process of rate-making out of the hopeless mess of controversy and litigation into which the reproduction cost and fair value theories have plunged it. It offers the consumer of electric current and the user of telephones no protection which they do not already enjoy under the present law.... It is foolish to think that any utility companies will enter into such a contract if it tends to deprive them of the benefits which they believe they derive from judicially determined reasonable returns on the so-called fair value of their properties. The evidence adduced before the revision commission must convince us of the unmistakable intent on the part of the utilities to fight on this issue to the last ditch. The dominant leadership in the public utility field represents too much the speculative rather than the investment interest in these enterprises. Any contract which definitely curtailed speculative possibilities in the interest of the security of the non-speculative investor would not even be given consideration..00 Needless to say no wide-awake and honest municipal administration will enter into a contract which gives the utility the best end of it. The prospect and indeed the certainty are that there will be no contracts. The bill in reality leaves the present condition untouched. It is not based on any recommendations from either the majority or minority members of the commission. It finds no support in the testimony before the commission. It was never considered by the legislative committees or by the members of the Legislature. It is a complete evasion of the issue. It does nothing to meet the problem. The bill suggested by the minority would have met the situation by compelling public utility companies to accept a carefully worked out transition to the actual investment basis on which the rate base would always be definitely ascertainable by accounting methods. But the majority party refused even to pass the bills submitted by the majority of the commission. The leaders in turn ^258

Page  259 Regulation of Water Companies and Bus Lines refused to permit the Legislature to adjourn without passing some kind of bill. So, to break the deadlock, the bill now before me, ineffective and meaningless as it is, was passed to allow the Legislature to adjourn with the hollow claim that something had been done. No other purpose can be served by the bill, and it is disapproved. 55 ([A Message Urging Regulation of Water Companies and Bus Lines. April 1, 1931 To the Legislature: AT THIS time I desire to call your attention to two bills which have been introduced by a member of the majority in the Legislature. They seek to bring within the control of the Public Service Commission water companies and bus lines. These are the only two remaining important classes of public utilities which have not yet been placed under the supervision of the commission. I believe that the continued omission of these utilities has been highly prejudicial to the public service and that the defect in the law should be remedied at once. I am advised that the more responsible bus companies in general are not opposed to State regulation, and are ready to accept and cooperate with legislation which places them under the same kind of public supervision which applies to their natural competitors- street railways, interurban lines, and railroads. On the other hand, many water companies have been and still are actively opposing all efforts made at State regulation. In spite of many years of effort, these companies have been successful in blocking all attempts to subject them to supervision in behalf of the public of the State. No sufficient reason can be advanced for depriving the consumers of water of the same protection as is accorded to the consumers of gas, electricity and telephone service. 259

Page  260 To Regulate Public Utility Companies In about three-quarters of the States of the Union, water companies are under the control of the public service commissions of the States, and the remaining one-quarter of the States have done very little in any direction toward public regulation of utilities. The fact is, surprising as it may be, that New York is practically the only large progressive and important State which does not publicly regulate the water companies of the State. Irrespective of the completeness or adequacy of our present system of regulation and control of all utilities, there is no justification for continuing to permit water companies to remain without the control of our regulatory body. I hope that your Honorable Bodies at this session will correct these unexplainable omissions in our system of public utility regulation. 56 The Governor Again Urges Passage of Adequate Legislation to Regulate Public Utility Companies. April 1o, 1931 To the Legislature: No ONE who has given the subject any thought believes that public utility companies in this State are now subject to that degree of control and supervision which was contemplated when our Public Service Commission Law was enacted in 1907. It is common knowledge, not only among utility lawyers but among the consumers of public utility services, that a long line of judicial decisions and court-made laws has to a great extent nullified the original purpose of the statute. So strong had public opinion become, indeed, that in 1929 the Legislature finally yielded to it, and appointed a commission to investigate the subject and to make recommendations for tightening the control of the Public Service Commission over the rates and services of these companies.

Page  261 To Regulate Public Utility Companies This legislative commission was organized, held its hearings, and made its report. Its investigation showed how completely the original theory of public utility regulation had broken down. That investigation has already cost the taxpayers of the State an appropriation Of $63,500. To date no material popular benefit has come from it. Last year the majority members of the Investigating Commission and the minority members, appointed by me to the Investigating Commission, submitted legislation to carry out their own theories of what ought to be done by the State in the interest of consumers. The legislation suggested by the majority members was ineffective when introduced; but after introduction it was thoroughly emasculated at the demand of the utility companies, with the result that what was left was so utterly ineffectual and inconsequential that it would have been a fraud upon the people for me to have approved the bills, giving the impression that something had been done for them. The plain fact is that nothing was done. I have been waiting-for some signs of action by your Honorable Bodies on this problem this year. Bills have been introduced this year by the minority leaders in the Legislature (Assembly Prints 2278-2286 inclusive, Senate Prints 1733-1741 inclusive) in a constructive effort to make public regulation effective, to simplify and definitize rate making, and to establish a system whereby fair and reasonable rates might be fixed without years of investigation, hearings and law suits.... I am convinced that the householders, small storekeepers, and farmers of the State are paying more for their utility services than they should under any legitimate allowance of profit for the utility companies. Large manufacturers and industrial users can, of course, protect themselves from extortionate demands. It is the smaller users of electricity - the women in the homes, the men in the small shops and stores, the farmers of the State - who have only too long been subject to rates for electricity and other services which have been all out of line with what they should normally and reasonably be expected to pay. 26 1

Page  262 To Regulate Public Utility Companies In the few hours that remain of the present session a great deal can be done by you for the protection of these people, who demand it. 57 # The Governor Makes a Final Effort to Obtain Adequate Legislation to Regulate Public Utility Companies. March 2, 1932 To the Legislature: I DESIRE to call your attention to the fact that the large amount of public money which was spent in 1929 and in 1930 by the legislative Commission on Revision of Public Service Commissions Law, has as yet produced no legislative action for the benefit of the people of the State. That commission was organized and created for the purpose of making recommendations to bring about a more adequate supervision and control of the large public utility corporations under jurisdiction of the Public Service Commission. The public of the State had come to realize that the degree of control and supervision which was hoped for in 1907 when the Public Service Commission Law was first enacted had become impossible of attainment because of a long line of judicial decisions and judge-made law which to a great extent has nullified the original purpose of the statute. The report of this legislative commission amply demonstrated the great extent to which public utility regulation had disintegrated. The recommendations for legislation made by that commission have been, however, completely ignored. Even the recommendations of the majority members of the commission which were wholly inadequate, were so 'completely emasculated through the lobbying activities of the utility companies of the State in the legislation which was passed, that I was compelled to veto the bills so as to prevent an actual fraud being perpetrated on the public by giving to the public the impression that something substantial had been done for them.... r%62e

Page  263 To Regulate Public Utility Companies I have asked the Legislature for several years to act. Bills to accomplish something effective have been introduced by the minority leaders in the Legislature after waiting in vain this session for' your Honorable Bodies to take action. If your Honorable Bodies are sincere in a desire to save money for the taxpayers of the State without at the same time throwing thousands of people out of work, this is a way to accomplish a saving that will be felt in practically every home in the State.,263

Page  264

Page  265 viii Toward the Reform of the Administration ofiustice IN MY SPEECH of acceptance on October 9, 1928 (see Item i, this volume), I pointed out that the administration of justice had become too costly, too slow and too complex, and that a study of the problem should be made not only by members of the Bar, but by laymen. I repeated that suggestion during my campaign of 19 28 (see Item 1 1, this volume), in my first Inaugural Address in 192 9, and in my Annual Message of 1929 (see Items 13 and 14, page 85, of this volume). The recommendation was again made by me on March 2 1, 192 9, in a special message to the Legislature (see Item 58, this volume). The Legislature created a commission but provided that it should be composed exclusively of lawyers. For the reasons expressed by me in my message of April 5, 1929 (see Item 59 of this volume), I vetoed this legislation. The following year, in my Annual Message (see Item 15, page 88, of this volume), I renewed my recommendation for a commission composed particularly of laymen. A bill carrying it out was passed and approved by me on April 23, 1930 (see Item 6o of this volume). Some of the results of this commission are set forth in my speech to the Bar Association of the City of New York on March 12, 1932 (see Item 6i of this volume). Since 1932 much has been done.. See also Item 18, page 1 21 of this volume. It will be noted that the problem of delayed justice in the State of New York was not caused by a scarcity of judges, whereas delays in the Federal Courts in 1937 were due in many districts and circuits, in large part, to an insufficient number of judges.

Page  266

Page  267 58 ( The Governor Repeats His Recommendation for a Commission to Study the Administration of Justice in New York State. March 21, 1929 To the Legislature: HAVE already addressed your Honorable Bodies in regard to the broad necessity for the improving of our whole system of the administration of justice. Many of our citizens feel, with some right, that substantial justice is difficult to secure because of the costliness, the delays and the lack of simple business efficiency. I recommend the authorization of the appointment of a temporary commission broad enough in scope to cover the whole field of study and more specifically: 1. To make a study of the business of the courts and how it can be simplified and expedited. This covers, among other things, the advisability of setting up new courts or re-arranging the system of old courts, especially the lower courts in large centers of population. 2. To examine into the advisability of creating a permanent commission or judicial council, or some other agency which would make a continued study of court decisions and the existing state of the law and recommend, from time to time, removal of anachronisms in the law and obsolete and burdensome requirements. In regard to the personnel of the proposed temporary commission, I can only say that I feel very strongly that laymen should constitute a large proportion of the membership; and that its personnel should be removed wholly from the field of partisan politics. 267

Page  268 A Commission Exclusively oJ Lawyers 59 4 The Governor Vetoes a Bill Creating a Commission, Exclusively of Lawyers, to Study the Administration of justice. April 5, 1929 Memorandum filed with Senate Bill, Int. No. 1492, Pr. No. 1782, entitled: "AN ACT to create a commission to investigate and collect facts relating to the present administration of justice in the courts of the State and report thereon., and making an appropriation therefor."9 NOT APPROVED. IN MY annual message I called attention to the necessity for a scientific study to be made by representatives of the bench, the bar and laymen, of our entire system of judicial procedure, with a view to a fundamental reform thereof. On March 2 1, 1929, in a special message to the Legislature, I again'recommended the creation of such a commission for such purposes. In that special message I strongly urged that the personnel of the commission be composed of a large percentage of laymen. The function of such a commission should be to examine not merely the superficial defects of the present administration of justice but rather the very frame-work and foundations of the system, which is universally regarded as archaic, expensive and inefficient. With that end in view., the commission should be composed of a large percentage of business men and other laymen, whose interest would be centered on this broad survey. While I favor lawyers serving on commissions, I think that this particular commission should be made up from all walks of life and, in large part, of laymen who can use their non-professional experience to good advantage. Bills in conformity with these suggestions were introduced in the Legislature. They were completely disregarded. Instead, this present piece of legislation was rushed through, which specifically provides that every member of this commission must be a lawyer or a legislator. The personnel of such a commission in all probability would be interested only in strictly legal and technical phases of judicial administration rather than broad general ques268,

Page  269 A Commission Exclusively of Lawyers tions of policy and fundamentals. No substantial benefit could possibly result from such a survey. I believe that the approval of this bill would be a wanton waste of sixty thousand dollars of public moneys appropriated by it. In its present form, this legislation would be a fraud upon the public, who demand something very different. Even the casual observer must see that this is not a sincere and honest attempt to improve the fundamentals of our judicial procedure and administration. In the study of the broad question of bringing our system of justice to the standards of business efficiency and to the meeting of modern conditions of life, it is essential to bring to bear the experience of lay as well as technical legal experts. The aim of the commission is to remedy conditions more important to the layman than to the lawyer. Although I am myself a lawyer, I feel that a study of this kind should have the active participation of laymen. This is not to be an investigation of the legal profession or of legal practices or of technical procedure; but rather of the underlying theories of civil and criminal judicial administration. While the bar should have a part in this study, it should not have an exclusive part. I regret that another year must go by before we can make another attempt, and in the meantime the responsibility for delay rests squarely on a handful of gentlemen who fail to respond to the popular will. For these reasons, I disapprove this measure. 269

Page  270 A Commission of Laymen and Lawyers 6 o (IThe Governor Approves a Bill Creating a Commission of Laymen and Lawyers to Study the Administration of justice. April 23, 1930 Memorandum filed with Senate Bill, Int. No. 162o, Pr. No. 1928, entitled: "AN ACT to create a commission to investigate and collect facts relating to the present administration of justice in the State and report thereon, and making an appropriation therefor." APPROVED. IAM glad to approve this bill creating a commission to investigate and collect facts relating to the present administration of justice in this State. This commission was suggested by me in my speech of acceptance made immediately after my nomination for the office of Governor in the fall of 19 28. I pointed out at that time, and have pointed out many times that the proper function of such a commission was not merely the remedying of minor procedural matters, but rather a fundamental revision and speeding up of the business of our courts. It was apparent to me that such a commission should have a large proportion of laymen on it for such purposes. Last year the Legislature, disregarding my recommendation, passed a bill providing for a commission which would have been composed wholly of lawyers. I promptly vetoed it. I am glad that this year the Legislature has seen fit to pass this bill in which laymen will undoubtedly play a most important part. I feel confident that it will go a long way toward making justice in this State cheaper and speedier. 270

Page  271 "TheRod4ofudcil-efrm 6i ~~f "Th e Road to Judicial Reform" - d rs before the Association of the Bar of the City of New York. March 12,91932 WHAT IS THE PROBLEM? IT IS unnecessary to take time in establishing the fact that the administration of justice is generally unpopular with the people of this country. Growing complaint with the law'9s injustices, delays and costs has to a great extent characterized every generation. The present one is no exception. At the present time, however, and in such a city as this, the problem rises in significance beyond the stage of mere dissatisfaction. It becomes a public problem of major 'importance. Speedy and efficient justice in a vast community like this is a public necessity, to be ranked with health, sanitation and police protection. I need not tell you that it has not yet been adequately provided. Moreover, in a time of economic distress such as this, the multiplication of legal actions involving debts increases. The necessity for relief is accentuated. It is impossible and unnecessary to consider here the extent to which this situation is caused by technical difficulty. It may be taken for granted that much of it is due to the fact that the rules of the legal game are such that in the absence of very strong administrative control they will be used, not for a direct search for the truth, but to permit such legal maneuvers as will further the interests of those who do not want the truth to be found. The jury trial, for example, established in order to provide the means for trustworthy decisions on matters of fact, is used all too frequently for purposes of delay. Absurd motions likewise enter the picture. In the long run the actual issue comes to be laid over with a whole network of unessential matters of strategy. So long as years of delay are assured by the condition of the calendars of the courts, this delay itself will be used to threaten those who have rightful claims. Such delays constitute actual denials of justice. On the other hand, those defendants who have 217 1

Page  272 "Thne Road to Judicial Rejorm" legitimate defenses are threatened with long and irritating legal processes. It is a common thing among courts where reform has been attempted that the very fact that justice is made more expeditious means the quick settlement of -many cases that should never have been in the courts at all. Thousands of cases find their way into the courts for the simple reason that to put them there, with the delay involved, is to set up a means to force an unjust settlement. Long delay is caused by non-meritorious cases, and non-meritorious cases are put into the courts because of long delay. The whole thing is a vicious circle. The only way to attack the problem is by rigorous application of judicial efficiency. In the face of this congestion the remedy commonly proposed is to add new judges or new courts, but it will readily be seen that if the problem is what I have stated it to be, such a so-called remedy merely aggravates the complaint. There are, of course, legitimate demands for additional judicial man-power in sections of the State where the population has grown rapidly. But it is easy to see that to apply this remedy in all cases is toI add to the ravages of the disease, to contribute to the confusion and, what is profoundly important at this time, to burden still further an already seriously embarrassed taxpayer. With taxes mounting in all of the subdivisions of Government, the time has come for a veritable searching of heart with regard to the cost of public service, and new demands should be most carefully scrutinized in the light of this problem of dollars and cents. Moreover, the cost to the litigant is very serious. This cost applies not only to the cost imposed by the governmental authorities, but professional fees as well. An English lawyer, in a very discriminating statement concerning the administration of justice in his own country, recently said justice in no country in the world is so expensive to obtain as England, except for the United States of America. Writers and lawyers in Continental countries comment severely on this feature of Anglo-American Government. In Germany, according to this authority, Mr. Claude Mullins (In Quest of Justice), an ordinary civil action for fifty pounds can be brought for total fees on both sides of not 272-M

Page  273 "Thne Road to Judicial Reform" more than eighteen pounds. On the other hand, in England and the United States the cost of litigation is still deeply embedded in the mysterious recesses of lawyers' accounts; but we may be certain that it is much, much higher. justice, then, is not only delayed, but it is excessively costly. Stripped of frills, the problem comes down to a question of administration. Some of the realism that goes into matters less clouded by theory and tradition needs to be applied to the administration of justice. There are, of course, important considerations of policy that distinguish the administration of justice from the administration of some of the more prosaic activities of life. But it is not too much to say that the fact that the law is a learned profession and that its exponents are men trained in theoretical wisdom and are quick to distinguish fine shades of meaning has permitted them to invest their business with an almost mystical attribute that forbids the laying of the hard hands of common sense on the things that they are doing. Yet, when you consider the vast portion of cases that come to our courts, the adjustment of these problems comes down pretty much to a consideration of the same items of everyday life that we have in other activities. It would seem to me that there is to be little of the sacrosanct in the problem of determining whether John Doe did actually sell a bill of defective goods to Richard Doe. The core of the matter, after all, is earthly fact,. and no manner of theorizing and of invocation of precedent is going to solve the essential issue. WHAT IS THE ROAD TO REFORM? If the experience of England is any guide to what we m -ay expect in the direction of reform, our progress out of the present unsatisfactory condition will be slow and, I fear, painful. In the first place, we must divest ourselves of the hope of easy reform, participated in by a few people. The day of the great law-giver is past. A modern, diversified and almost incoherent society requires that reform be the resultant of many diversified efforts. Cooperation among the innumerable interests of such a State as 0273

Page  274 "Thne Road to Judicial Reform" ours is necessary and such cooperation means vastly detailed and patient planning and labor. The history of law reform in this State has shown this. While many marked improvements have taken place in the past thirty years in connection with the administration of justice, it has been notable that altogether too many well-planned attempts at improvement have failed. If we are to succeed now it must be by widespread cooperation and unflinching labor. One of the difficulties has been the fact that attempts to reform have concerned themselves largely with the higher courts of the State. These courts, as the result of consistent efforts on the part of reformers and largely because of the generally splendid personnel of judges who have served in them, have been a credit to New York and to the Nation. It is a matter of pride for the citizens of New York to consider how widely throughout the various States our Court of Appeals has been placed not only in the front rank, but preeminent among the courts of last resort. While these courts go far to encourage optimism, it is nevertheless true that our lower courts have been and are vastly in need of reconstructive improvement. The great delay occasioned in some of our city tribunals, the unsatisfactory nature of justice as it is administered by justices of the peace throughout the State and the unsatisfactory condition in the administration of criminal justice, all point to the necessity for serious consideration of those courts that provide the means of justice to the poor and unfortunate. In the quest for reform there is no doubt as to the willingness of leaders of the bar to assist not only individually as lawyers,. but through the various associations throughout the State. Vast en-. ergy and sums of money have been spent in order to justify the expectation of those who believe that lawyers ought to be in the forefront of reform in this field. But in spite of this professional cooperation and assistance, I have felt from the beginning that reform cannot ultimately succeed unless it is participated in and supported by the lay public. Consequently, in the creation of a Commission on the Admin274 -

Page  275 "The Road to Judicial Reform" istration of Justice for this State, which, after repeated requests, I succeeded in bringing into existence through the Legislature, last winter, I insisted that there be lay membership. England found in the long struggle for legal reform in the Nineteenth Century that laymen were indispensable. Kenneth Dayton, Chairman of the Committee on Law Reform of the Association of the Bar, says of the part that laymen played in law reform in England: "The lesson of the early battlers has not been lost upon the English public. Increasingly, the examination into the administration of justice and its improvement has been delegated to laymen. The first commission appointed in 1850 consisted of seven attorneys, but on petition of Parliament two business men were added to the commission. The proportion of laymen upon subsequent commissions has constantly increased. A Parliamentary committee appointed in 1909 contained but one lawyer out of ten members. The 1913 commission was made up of one judge, two lawyers and eight laymen. Of this commission it was said, 'even this meager representation of the legal profession was objected to by the commission as discrediting its report.'" We should not forget the direct interest in the administration of justice that laymen have; in the last analysis they suffer most from the slow-moving courts. Moreover, laymen have no vested interests, except in unusual instances, in the administration of justice. They are not lawyers with the fear of antagonizing the judiciary, nor are they judges who hesitate to reconstruct the conditions under which they work. Moreover, the intelligent layman is able to cut through cobwebs that in some way frustrate the efforts of the lawyers. It is now clear to all thoughtful observers that reform in the administration of justice means an attack much more fundamental than the mere alteration of rules of procedure. It is more a problem of government than of law. It is concerned with questions of administrative policy and with social welfare rather than mere procedure. This involves a broad search for the experience of other States and most certainly of other countries. It means that we should, 275

Page  276 "Thne Road to Judicial Reform" wherever possible, adopt the experience of other States. For example, there has developed throughout the country a system for the management of the calendar, which originated, as I understand, in Cleveland and details of which are familiar to many members of the bar here. Largely through the leadership of one of your own members., Mr. Harry D. Nims, the Federal courts in New York have adopted a modification of this system, and now, as I understand it, the Supreme Court of the First Department is in like manner expediting its business and at the same time saving money for litigants and taxpayers. Other useful experiments are abroad in the land which New York should not be long in examining. It is a very gratifying thing that our State Commission on the Administration of justice is keenly aware of the necessity for a consideration of such experience, has made itself familiar with a number of these ideas and is planning a further search for the benefits of further experience in other places. To the end that reform of this type may be provided with official State leadership we have at last created a Commission on the Administration of justice, which has set to work this past year. As is indicated in its preliminary report, it has carried on its work with a number of sound general policies. This Commission, broadly representative in interest and viewpoint, has diligently applied itself to its task. It has selected its field of investigation with discrimination; but it has brought within its purview far more than a mere tinkering with procedure. It has initiated the study of a number of significant subjects, it has called conferences of judges, held public hearings, and in a tactful but effective manner has opened the way to a genuine appraisal and reconsideration of our judicial system. It wisely proceeded with a decorous abstention from publicity. The trouble with some types of reform is that they celebrate before the event. They are, as Chesterton drily remarks, rejoicing in the memory of tomorrow afternoon. The Commission has sought, through cooperation with the courts, and in many other ways, a reasonable program of improvement. It will, in the year to come, seek to move toward the - I-6A

Page  277 "Th e Road to Judicial Rejorm" achievement of this program. Its main results, it may be assumed, will be indirect, the courts themselves., through common thought on the subjects at issue, achieving the beneficial result sought for by all of us. Because while some legislation and perhaps even a number of constitutional changes are desirable, the most important improvements can be achieved without new laws. To this end the Commission has sought and, it reports, secured the interest and cooperation of judges and lawyers throughout the State. A few weeks ago, for example, at the request of Senator Walter Westall, Chairman of the Commission, the four Presiding justices of the Appellate Divisions of the State, and other judges, met with the Commission to consider matters of common interest. This meeting of minds, which, as I understand, will be continued, cannot help but have a beneficial effect upon the administration of Justice throughout the State. Administrative readjustments of the greatest value can come by the use of customary powers or, what is more noteworthy, by the potent influence of suggestion and example. A thoughtful judge of this city, Bernard Shientag, commenting upon the need for judicial statistics, says that "6the absence of such statistics has, more than anything else, checked the progress of the law." One of the activities this Commission contemplated for the coming year is the creation throughout the State of a system by which there will be for the first time in the history of New York, adequate statewide statistics concerning all of the courts. It is planned that this work should be carried on and if and when a permanent -judicial council is created, the present temporary Commission will divest itself of this function and transfer it to such a permanent body. The value of such information, systematically gathered and intelligently presented, is of extraordinary importance. It will give officials themselves a picture of the state of litigation in the courts which will permit us to know what work the courts are doing., how much of it there is, and how long it takes to dispose of cases. It will, I hope, be a-permanent and accurate guide to the Legislature in the creation of C%77 ý

Page  278 "Thne Road to Judicial Reform" new courts and new judges. It will give us the assurance that we shall not be permitted to enact legislation adding to the expense of the courts, without accurate scientific means of knowing the extent of the need and whether it is immediately necessary. What I have said of law reform may in many respects be applied with singular appropriateness to much of public life today. The principle of fewer new laws has, it is true, been widely advocated. But it has too often been the cry of a touchy conservatism, a wish to escape the regulatory arm of the Government. The general wisdom of the demand for fewer laws is undeniable. But its necessary correlative principle is to use with intelligence and energy the powers that we have. Administration, informed, energetic, and economical,, is the deep need of Government today. The public, particularly in these moments of deep stress, deserves of its servants an example of unselfish application to duty. Let us remember that every member of the bar has something of the character of a public servant and that he owes it to his profession and to the public to encourage and to give his efforts for important and even drastic improvements in the administration of justice. 278

Page  279 Ix Modernization of Local Government INTRODUCTORY NOTE: PEOPLE who speak of the large percentage of national income which goes to the payment of taxes very often overlook the fact that a great proportion of such taxes is paid to what is known as local government - town, village and county. For example, in most States practically all of the tax on real estate goes to local government rather than to State Government. Of course, the Federal Government does not levy any tax at all on real estate. A great deal of the taxes paid for local government could be avoided if the inefficiencies, anachronisms and overlappings in local government were eliminated. In the papers in this chapter, in my acceptance speech of the first nomination for the Governorship (see Item i, this volume), in my Annual Messages to the Legislature and in my second Inaugural Address (see Item 14, page 82; Item 15, page 89; Item i6, page 95; Item 17, page io8; Item 18, page 117), and in other messages and speeches which have not been included, I pointed out the need for improvement of local government in the interest of efficiency and economy, not only in the State of New York, but throughout the United States. Repeatedly I urged the Legislature to take definite steps toward reform along these lines. The need today becomes greater each year as the functions of Government increase. The American form of local government has come down practically unchanged from the days when rural communities were sparsely settled and when communication and transportation between communities were slow and cumbersome. The telephone, telegraph, steam engine and automobile have rendered 279

Page  280 Note: Modernization of Local Government wholly inadequate and obsolete the machinery of local government which has persisted through the years. Of course, little can be done to remedy defects in local government by the Federal Administration in Washington, except perhaps to call attention to the need for reform (see Item 140, this volume, page 759). In my own State of New York, action has been begun for reform in local government, and it is to be hoped that the other local communities throughout the United States., for the sake of efficiency as well as for the sake of economy., will take similar steps. 280

Page  281 6 2 (IAddress on Reorganization and Consolida tion of Function of Local Government and Their Effect on Taxes. Saranac, N.- Y. September ii1, 1929 ~~1TTHY Must the American people be inconsisti~f ent? In our business life and in our social iAI contacts we are little controlled by the methods and practices employed by our foreVY fathers. The farmer of today does not plant, cultivate, harvest and market as did his grandfather. Methods of manufacture and of distribution and of merchandising are entirely unlike those of a century ago. We have made great changes. in the budgeting and administration of the Federal and State Governments. Nevertheless, in almost every State in the Union we seem content, in the main, to accept and continue to use the local machinery of government which was first devised generations or even centuries ago. In the State of New York, for example, I am utterly unable to understand why we remain wedded to the local system of government devised two hundred and fifty years ago by His Royal Highness, the Duke of York. It has been well said that, while in the larger units of American Government, at Washington and at the State capitals, undoubted savings in administrative efficiency can still be made, yet the waste there is a mere drop in the bucket in comparison with the extravagance, the loss, the duplication - yes, the stupid-- ity and, in some cases, the dishonesty -which exist in so many sections in the conduct of local government. For Americans to be proud of their business efficiency, of their economic progress and of all the improvements which have come to them during the past generation is highly inconsistent with the attitude of the average citizen who, without objection, allows local government to continue in its time-worn groove of inefficiency. I do not think that I am overstepping the bounds of truth, and I am fairly familiar with conditions in many States, when I 281

Page  282 Local Government assert that not one percent of the towns and counties of the United States but could save great sums for the taxpayers, if they were reorganized along modern business lines. It should be clearly understood, of course, that while this problem is nationwide in its scope, yet its solution cannot be considered from the national standpoint but must be studied, first., from the State standpoint and, second, from the point of view of the dwellers in the counties and towns themselves. While the generalization in regard to the need of reorganization applies to all States, the details vary in each State and, indeed, even in the local units themselves. That is why I take, merely as an example before this National Tax Conference, the situation which exists today in the State of New York. The lessons from New York may not apply in detail to the other States, but they do apply in principle. Under the Duke of York's laws the county and the town were recognized as the two units of local government. With practically no exceptions the organization of our counties and towns remains the same today as two hundred and fifty years ago. We now have all the town offices, for example, which existed under the first State Constitution of 1777, with several more added. It is well to remember in dealing with this broad problem that the conditions of life have undergone a revolutionary change. These conditions have changed all of our relations in business, but they have not called for corresponding changes in our agencies of government. In the old days people of a community lived very much within that community with few, if any, outside contacts. Today modern transportation and modern communication have given to many things, which were originally of local concern and, therefore, functions of local government, a far broader aspect. I recognize to the full the sentiment and home pride which cling jealously to county and town lines, especially in those parts of the country which have a long-standing historical background. As a matter of practical effort, therefore, revolutionary changes in local geographical units would seem to be out of the question 282

Page  283 Local Government for immediate relief. We do not put through great reforms all at one time. We must seek what can be practically accomplished even though the process may be piecemeal. The two main aspects of this problem are: First, what can be accomplished toward the consolidation and reorganization of local units of government and, second, if we leave local units of government as they now exist, how we can relieve them of functions which are not purely local?... In this connection, it is worth while noting that a differentiation must be made between counties which are mainly agricultural and other counties which are almost wholly suburban. For instance, in Nassau County, on Long Island, the greater part of the area of the county lies within the limit of incorporated villages. Yet in addition to the officials of these villages there exist complete sets of town officers who have jurisdiction over the fringes of land outside the incorporated villages. This brings up the serious question as to the necessity for town government in the suburban counties. Why have many complete sets of officials whose jurisdiction and duties overlap? It is time for the recognition of the new phenomenon of the widely growing suburban areas which are constantly increasing in size, in wealth, and at the same time in the demands for all kinds of public improvements, sewers, lighting, water supply, concrete roads, special policing and the like. Why should they be governed under a system devised for a sparsely settled agricultural community? It is this lack of study and reorganization of the suburban areas which has led to the terrible abuses of the last few years. In Monroe County in this State a suburban town has recently given the example of advertising for bids for a system of sidewalks which had been actually laid and completed two years before by a contractor who was in league with a real estate developer and the town officials. In another town in the same county various so-called improvements have, in the past few years, been put in with such a lavish hand that the per capita debt of the inhabitants of that town is over $1,ooo apiece. By the same token this system 283

Page  284 Local Government has so grown without restriction or planning that, after the last session of the New York Legislature, I was compelled to veto many local bills, especially those affecting towns and villages in Westchester County, on the general ground that these bills were establishing new officials, boards and commissions, without regard to uniformity, or were enabling officials, boards and commissions to spend the taxpayers' dollars in the millions without any approval on the part of the taxpayers themselves and without recourse. The other side of the picture relates to the relief of local units of government through functions which are no longer purely local, even though the geography of the local units may remain the same. Let me cite some examples. During the early history of the country, roads, for instance, were used almost exclusively by the people living within a given community, and it was proper that they should be required to maintain these roads. Now, however, almost no road is a local road and this function of government, originally a purely local town function, has now become one of county and State concern. I know of no business reason, and can think of none, why the town as a unit of administration of highway expenditure should longer exist. I shall propose to the next Legislature that the citizens of any county in this State may in their discretion substitute a county highway organization for the present large number of town highway organ izations., one in each town, which now exist. If an enabling act of this kind is passed, and if the counties of this State shall avail themselves of the act, it will result in the substitution of fifty-seven county highway organizations in the place of the nine hundred and thirty-three existing town highway departments. Were this purely a business proposition, the decision would be immediately and promptly made. It would result in building more and better town highways for the same amount of money. More than that, it would result in the opening up of vast areas of the State of New York which today, because they are off a concrete State road, have shown no increase in value and have shown steadily decreasing populations. n28 4

Page  285 Local Government Another example: Except for the fact that larger health districts are permissible, the town is still the unit for health administration in rural communities. With modern means of transportation no good reason exists in most cases for that form of admin istration. Disease germs are no respecters of political boundary lines. They will flit from one town to another without the slightest thrill when they pass over town lines. There is no doubt that administrative health units larger than the town are imperative in these modern times. Still another example: Every two years in this State we elect in each town a collector of taxes - over 930 of them in all. In the old days when a horse and buggy furnished the most rapid means of communication, a town collector's existence was justified. The town collector today is paid by the fee system and there is a definite premium for his own pocketbook if he lets a collection of taxes slide and later gets a higher fee for the delay. It would be right, of course, in some towns to provide, as a matter of convenience, some central point and some one individual -say the town clerk -who might receive the payment of bills voluntarily brought in. But, in the main, the principal tax collecting agency might well be the office of the county treasurer. I shall ask the next Legislature for enabling legislation which would allow the citizens of a county, if they so wished it, to place the duty of collecting taxes in the office of the county treasurer, providing at the same time for the sending out of uniform tax bills, with definite notation thereon telling each taxpayer what his money was going to be used for; how much was to go to the State; how much to the county; how much for roads; how much for schools and other purposes. It has been estimated that the consolidation of 'tax collecting under a county official would save the taxpayers of this State over half a million dollars a year by the elimination of unnecessary existing town officials. Finally, it is right that we should give serious consideration to the office of justice of the Peace. These town officials are in most cases paid by fees. Their duties are threefold, to hold and commit violators of the law, to try minor violations of the law, sitting as 285 t

Page  286 Reorganization of Local Government magistrates., and to hear and try small civil actions happening within their town. In most cases justices of the Peace have had no legal training, and, while many of them are conscientious in the exercise of their functions, the great majority of the justice of the Peace courts in this State give unsatisfactory and, in many cases, costly justice. Simplified and less costly justice for the average citizen is a crying need of the whole Nation. One of the first steps will be to reorganize the whole system of justices' Courts, retaining possibly some individual in every township, who shall have the jurisdiction of a committing magistrate but placing the trial of both criminal and civil cases in the hands of qualified and trained judges. By this means we shall gain much, both for a larger measure of justice and for the saving of the taxpayer s pocketbooks..00 I consider this subject of local government one of the major outstanding problems confronting the people of the State of New York. I consider that it is the major outstanding problem in almost every other State. I hope that next year New York will have the courage, the common sense., and the will, through its Legislature, to start this definite reform. I want to see this State save millions in taxes for the benefit of the present generation, but even more I want to see our generation reorganize and improve an outworn system for the sake of those sons and daughters who will come after us. 6 3 (~The Governor Persists in His Recommendation for Study and Reorganization of Local Government. April 9, 1931 To the Legislature: LOCAL county, town, village and district government in this State during the year 1929 Cost the taxpayers $ 192, 116,594.66. This does not include the cost of city governments. This huge total remains in spite of the fact that, as a result 28 6

Page  287 Reorganization of Local Government of the recommendations of the Agricultural Advisory Commission, which I appointed in 1928, the State has passed measures of rural tax relief which have reduced the cost of local government by $24.,000,000 annually. There is no doubt in the minds of those who have studied, even superficially, the system of local government in New York State that it is both extravagant and inefficient. It is important to'bear in mind that for the last several years every penny of real estate tax which is paid in this State goes into the cost of local government; not a cent of it goes into the State treasury. Our form of local government has for the main part come down to us from a period of two hundred years ago with few, if any, fundamental changes. It is now so out of line with modern conditions that in addition to being extremely expensive, it is inconceivably inefficient. The taxpayers are not only paying an exorbitant sum for their form of government, but they are not even getting their money's worth. Millions of dollars can be saved annually by abolishing useless offices, by eliminating the pernicious fee system and by allowing local communities to create consolidations of districts and scattered functions. We can retain home rule and at the same time apply modern business methods. For several years I have requested the Legislature merely to study this question with a view to reorganizing the whole system. There can be no justification for the steadfast refusal to investigate it. Once again I urge that your Honorable Bodies do not adjourn this year without creating a commission to study this problem, so that the taxpayers of the State, and particularly those residing in every part of the State outside of cities, may be relieved of the terrific burden of governmental expense which they now carry. 287

Page  288 Costs and Taxes in Local Government 64 ~ Address at University of Virginia on the Excessive Costs and Taxes in Local Government. Charlottesville, Va. July 6, 1931 THE cost of Government in this country, particularly that of local government, is causing considerable concern. We are told that the aggregate expenditure of Federal, State and local government is approximately twelve or thirteen billion dollars yearly. Of this sum the Federal Government spends approximately one-third, State Governments about 13~ percent., leaving considerably more than one-half as the cost of local government. Notwithstanding the influence of the war on Federal governmental expenditures these ratios have existed, with slight variations., since 1890. It is manifest that inasmuch as the cost of local government constitutes the major portion of our aggregate tax bill, we must, if we hope for lower taxes or less rapid increases in taxes, analyze local government and see if its workings may not be simplified and made less expensive for the taxpayers. The form of local county and town government as we know it in most of our States dates back to the Duke of York's laws, enacted about 1 670. The design was to meet conditions as they existed at the time and was continued by American States after the Revolutionary War. It is astonishing how few changes have been made in the form since the formation of our Nation. We may assume that at the time of its adoption it was suited to the conditions of that period. You will recall that no steamboats, railroads., telephones, telegraphs, motor vehicles or good roads were in existence. Means of transportation and communication were meager. The swiftest methods of travel or of communication were the saddle horse, the stage coach and the canal. Sometimes we refer to that age as the "horse and buggy age." Perhaps it would be more accurate to describe it as the "tox-cart age." We had no urban centers - only a few overgrown villages. Our population was almost exclusively rural. In those days at least eight out of every ten workers obtained a living by tilling the 288

Page  289 Costs and Taxes in Local Government soil. The people lived in small territorial groups and led local community lives. They subsisted almost entirely on the things which they produced or which were produced by others in their locality. A town form of government was the natural form. It suited the conditions of the time. Moreover, the need for governmental service was not extensive. Trails met the need of the limited inter-community travel where expensive motor routes are now necessary. Little attention was given to public health. There might be a village pump, but otherwise each citizen took care of his own water supply, and drainage and garbage disposal were family concerns. At first police and fire protection were not considered municipal functions. Every community made provision for its own poor. An education in the three R's was deemed sufficient for the average child. But conditions have changed. We have witnessed a most remarkable growth in population and an astonishing transformation in social and economic conditions. Factory production and a high degree of specialization even in our agriculture have kept step with improved methods of transportation and communication, with the result that community living on the old pattern has vanished. Instead of producing for our own families and neighbors to consume, we are putting our thought and labor on products that go to distant cities and States and even to foreign lands. We clothe ourselves in the fabrics of distant factories, we build our homes of materials transported perhaps thousands of miles and our food is collected from the four corners of our own continent and from all the other continents and the seas of all the world. Our population, too, has become in part transient. We follow the call of industry, of ambition or of whim from community to community and from State to State. It is not only in the newer regions of America that the old resident may find himself in the minority. The personnel and even the character of the population in any village in one of our older States may change within a few years. Every village and every city and every community is made up of rapidly shifting groups whose members are units in a &189&_

Page  290 Costs and Taxes in Local Government national economic and social scheme rather than fixed residents of any community. The untraveled person has become comparatively a rarity. Things which originally were of local or community concern are now of much wider interest. This applies, as you will readily agree, to such things as roads, schools, public health, the care of the socially dependent and virtually every activity of local government. Yet we have continued to use the machine designed under radically different conditions as the major instrument through which to sell governmental service in this age of bewildering movement. Let us inspect the machinery of local government as it exists today. In this country of ours we have, it is said, 500,000 units of government. They range from the Federal Government down to the smallest school or special district. Take my own State as an instance. We have, first, sixty-two counties and sixty cities, but this is a mere beginning. We go on from these larger wheels of the machine to find 932 towns, and according to the last count, 525 villages, 9,600 school districts and 2,365 fire, water, lighting, sewer and sidewalk districts, a grand total of 13,544 separate, independent governmental units. Carrying the analysis a step further let me cite an example: a small, densely populated suburban county adjacent to New York City where we have three towns and two cities. Again, that is only a start. To these we must add forty villages, forty-four school districts and one hundred and fifty-six special districts in order to understand how complicated the local governmental problem in that county really is - a total of 246 governmental units in one county. The expenditures of local government have increased at an astonishing rate. In 1890 local government in the entire Nation cost $487,000,000. In 1927, the last year for which complete figures are available, the government of lesser units within States cost $6,454,000,000. It increased from a per capita of $7.73 in 1890 to $54.41 in 1927. Just that you may see what has happened in a small unit such as a county, let me say that in the suburban county to which I have referred, all local taxes in 1900 amounted 290

Page  291 Costs and Taxes in Local Government to $337,000 and in 1929, in round figures, $22,000,000. In that space of time the valuation of taxable property increased thirtyfive times, but the taxes increased sixty-five times, while population multiplied only five and one-half times. In another case, that of a rural, agricultural county, local taxes amounted to $158,000 in 1900 and to $1,150,000 in 1929. In this case taxes were multiplied seven times, tax valuations slightly more than two times, while the population of the county actually decreased 5 percent. In the suburban county per capita local taxes in 1900 were six dollars and in the rural county four dollars and thirty cents. But by 1929 per capita taxes were ninety dollars in the suburban county and fifty-two dollars in the rural community. These figures demonstrate, first, the very rapid growth in the cost of rural government; second, that such growth was very much more rapid than the increase in either taxable wealth or population; and, third, it presents sharply the question whether we are obtaining our money's worth through this method of buying governmental service. These conditions have presented in my State - and I think similar problems are present in every State - the question of how to finance local government. In the main, local government must depend for its revenue upon a general property tax. To a very great extent that tax has degenerated into a tax on real estate only, and as local expenditures have increased the tax on real estate has mounted. In the two counties to which I have referred the tax rates ranged in the suburban county in 1900o from fourteen to seventeen dollars per thousand and in the rural county from seven to twenty-one dollars per thousand. In 1929 the suburban county rates ranged from twenty-four to forty-six dollars, while the rates in the rural county were from twenty-five to fiftyfour dollars. The increase in taxes on farm real estate indicates in a striking way the increases in taxation that have occurred and. the added burden which this places upon agriculture. Here are some illustrations from New York State. On a selected group of good farms, taxes just doubled in the

Page  292 Costs and Taxes in Local Government period from 1914 to 1923. During the same period the general price level increased only 27 percent. In another case on three farms in an average agricultural county of the State where records are available for lo00 years, the increases in taxes from 18295 to 1925 were as follows: Farm No. i, from $2.48 to $101.44 Farm N o. 2, from $2.33 to $140.36 Farm NO. 3, from $2.38 to $115.20 These are typical of increases on several other farms where records are available. This is perhaps the most graphic method of showing the increase on farm property. On the same group of farms mentioned above, it required three bushels of wheat on the average to pay the taxes on one farm in 1825. In 1925, it required 104 bushels of wheat. In-' other words, the tax burden per farm on the average of six farms increased in i oo years from three bushels of wheat to 1 04 bushels of wheat. On these same six farms it required at the going rates for labor six days of labor to pay for the taxes per farm in 1 825, and 37 days of labor per farm in 1925. Taxes bear more heavily upon the poor farms than upon the good farms. In one township where approximately 40 percent of the farms were abandoned, the taxes averaged 3.4 percent of the real value of the farms. On six farms in that township the taxes were over 10 percent of what the farmer considered to be the market value of his farm. Many other figures could be cited from our available farm cost data to indicate similar changes that have taken place in farm taxes. Accompanying these increases in local rates has been an increasing demand for relief of the burden on real estate. A study was made in New York of the trend in the tax burden on real property, covering a period from 1915 to 1927. That study disclosed that in the wealthy, growing counties of the State the true burden on realty increased 161/2 percent in those twelve years, while in the rural, agricultural counties the increase in the burden was 43 percent. This established to our satisfaction that some2921r r

Page  293 Costs and Taxes in Local Government thing must be done to equalize the burden of taxation as between different counties and communities. Various remedies were suggested, which grouped themselves as follows: i. To abolish the direct State tax on real estate and personal property;,2. To share with localities State-collected taxes; 3. To grant State aid; and 4. To reorganize local governments., or at least transfer from local government to larger units of administration some of the functions now performed locally. In New York we have invoked all of these methods except that of reorganizing or simplifying local government. That has been advocated by my distinguished predecessors in office and by me. As yet nothing has been accomplished in that direction. The Legislature for various reasons has almost wholly neglected or refused to act on any of the proposals either to simplify local government or to make a comprehensive study of local government, looking toward improvements. For instance, based upon the report of a commission of eminent health authorities, I urged the enactment of a law this year which would establish the county as the unit for health administration, thereby reducing from more than one thousand to about one hundred the number of health administrative units. I believed the service would be improved, the public health better protected, more efficient use of the tax dollar obtained and discrimination against the rural population as compared with the urban population eliminated. That proposal was allowed to die in the Legislature. In another case I proposed to eliminate from the fee system for handling State aid for public education an expenditure of more than $300,000 now being made under the present system in the form of a fee of i percent paid to town supervisors for acting as intermediaries in the transfer of funds, and again the Legislature failed to approve. One of the remedies proposed was to abolish the direct State tax on real and personal property. That we accomplished in New York during the first year of my first term. In that respect we fol2931

Page  294 Costs and Taxes in Local Government lowed Virginia's course established by your distinguished Governor Byrd. A second remedy that we have embraced in New York is that of sharing with the localities certain taxes collected by the State. During the last completed fiscal year the State returned to the various units of local government more than eightyfive million dollars as their share of taxes collected by the State. While I am on this point, let me say that this remedy is not without its dangers. I incline strongly to the view that it should be adopted only when some form of guaranty is exacted that the funds so distributed will be efficiently and economically used. Too frequently, I fear, do the local officials view revenue obtained in this way as "easy money" and spend it accordingly. I am convinced that it is not always used to reduce the general property tax. I am opposing the further development of this program in New York unless more adequate and complete guaranties are required of the sub-divisions that the funds will be distributed so as actually to reduce the local tax burden or to provide on an efficient basis for services really needed. Still another remedy that New York has applied to the excessive local tax load is that of granting State aid to local government for specified projects and services. This year the State is appropriating one hundred million dollars for the aid of public schools, more than three million dollars for county highways and something more than four million dollars for town highways. More than one-third of the New York State budget consists of items of this form of aid to localities. This method of relieving the local tax burden is subject to the same dangers as that of sharing taxes with the sub-divisions of the State; it is apt to lead to extravagance and to result in the inefficient use of money. As I see the situation under the present distribution of functions, State aid is essential in New York and probably the same conditions obtain in other American States. Too frequently, however, State aid is granted and the money turned over to the localities without requiring that its expenditure shall be subject to State supervision, without exacting any guaranties that the aid so granted will be economically used or 294

Page  295 Costs and Taxes in Local Government applied to reduce the local tax load. In this regard I think our New York system is lax, and I venture to believe that may be truthfully said of similar aid granted in other States. Finally we come to the remedy of lightening the local tax burden by transferring from local government to the State Government, or at least to a larger division of government, some functions of local government, that is to say, transferring the responsibility or the obligation to pay for certain improvements or governmental services. This method of local tax relief is rather extensively used in New York. After my election in 19298, I appointed a commission known as the Agricultural Advisory Commission. The purpose put before its distinguished members was to devise methods of assisting and promoting the interests of the rural population of the State, and of agriculture as an industry in the State and to see if and to what extent justice might be done by way of equalizing taxes as between the rural and the urban communities. The first reform the commission recommended was that the State assume the entire cost of completing and maintaining the State highway system. Under the then existing law the counties were required to contribute thirty-five percent of the cost of such highways and to pay approximately $6oo,ooo annually for their maintenance. It worked out this way: one of the wealthiest counties could pay its share of the cost of completing the State highway system by levying one tax of thirty-seven cents per thousand dollars of taxable valuation, while in a poor rural county a tax of forty-six dollars per thousand would have to be levied. The recommendation of the commission was adopted. Thereby the State relieved the counties of an aggregate expenditure of fifty-four million dollars for construction, and an annual charge of six hundred thousand dollars for maintenance. The next recommendation of the commission was based -on the town highway or "dirt road" situation. The State had been granting State aid to the towns, but under a plan which permitted the wealthiest town in the State to obtain out of the State treasury fifteen hundred dollars for each mile of town highway, while the 295_%

Page  296 Costs and Taxes in Local Government most that any one of six or seven hundred poor towns succeeded in obtaining was twenty-five dollars per mile. Tax rates for the maintenance of town highways ranged from a dollar or two to as high as sixteen or eighteen dollars per thousand of taxable valuation. The high taxes were invariably found in the poor rural towns. To remedy this condition a law was enacted which provided in substance that no town need have a tax rate higher than three dollars per thousand and that the State would give to a town as State aid the difference between the proceeds of a three-mill levy and a sum needed to create a fund equal to one hundred dollars for each mile of town highway. You will readily see that this tended greatly to relieve excessive local taxation and also to equalize the burden of supporting the town highway system. The commission then turned to rural schools. It found that school tax rates varied from one dollar to more than twenty dollars per thousand. As in the case of highway taxes, the very high rates were found to obtain in the rural, agricultural communities. The principal of equalization was invoked here with the result that rural schools in our State can now be supported adequately with a tax rate no higher than four dollars per thousand, the State contributing the difference between the proceeds of such a tax and a sum sufficient to maintain the schools. Attention was then given to bridges in the State highway system. The State had required the counties to pay thirty-five percent of the cost of all bridges in the State system. The commission proposed, and a law was enacted, pursuant to which the State assumed the entire cost of building bridges and of maintaining them when constructed. This automatically relieved the counties from an expenditure of $34,750,000, and to that extent eased local taxes. In addition to these things the State relieved the counties of twenty million dollars for grade-crossing eliminations, and engaged to pay one-half of the cost for snow removal. I have mentioned these things that you may know of the effort we have made in New York to take from the sub-divisions of the ^296r

Page  297 Costs and Taxes in Local Government State the burden of excessive local taxation, and I think you will agree with me that we have gone a long way. You will readily realize, however., that in our efforts thus far we have merely shifted from local government to the State Government expenditures for these purposes. It is true that in some instances the State is certainly doing these things better and more economically than the localities would have done them, and in that way genuine economy has resulted. It is also true that through these measures we have gone far toward equalizing the tax load in New York State; but the fact remains that we are still supporting a complicated machine of local government which seems to me and to many others unreasonably expensive, wasteful and inefficient. In our effort thus far we have succeeded in reducing somewhat in the aggregate the cost of this elaborate machine., Is it not time that we should analyze this form of local government and see how far it is suited to the conditions of today? Think of it in this light if you will: No citizen of New York can live under less than four governments: Federal, State, county and city. If one lives in a town outside of a village, he is under five layers of government: Federal, State., county, town and school. If he lives in an incorporated village, another layer is added. If he lives in a town outside of the village, he may be in a fire, water, lighting, sewer and sidewalk district, in which case there are ten layers of government. A citizen so situated has just too much gov.ernmental machinery to watch. It is too complicated for him to understand. He may not sense or realize that ten sets of officials are appropriating public funds, levying taxes and issuing bonds. His attention is not usually centered on local government, for seldom, if ever, does he know what sums are being appropriated, what taxes are being levied or what bonds issued. Means for gaining information concerning these things are altogether inadequate. I question whether there is any real need for so many overlapping units of government. I incline strongly to the view that much can and will be accomplished by reorganizing and simplifying the machinery of local government. -297 -

Page  298 Costs and Taxes in Local Government Recently a comprehensive study of this problem was made in the State of North Carolina. The conclusion reached in the report of that survey is that a radical reorganization of local government is needed. It is intimated that county government is obsolete and that the county as a unit of administration may well be eliminated. It is conceded that it will take time to secure majority support for that proposal, and in the meantime it is urged that counties be consolidated and a greatly simplified form of county government be set up to replace present cumbersome forms and many officials. The report of a similar study in New Jersey reaches substantially the same conclusion. I am quite convinced that the excessive cost of local government can most effectively be reduced by simplifying the local governmental organization and structure and by reallocating the responsibility for performing various services, according to a logical analysis rather than by accident or tradition. I think we need to consider each service and decide what administrative unit and what size unit can most effectively and economically perform that service. The smaller units of rural government are so unequal in wealth that some are unable to maintain satisfactory roads and schools even with excessively high tax rates, while others with very low rates are able to spend generously and even extravagantly. All overlapping of local jurisdictions should be abolished. I incline to agree with those who hold that one or at most two layers of local government subordinate to the sovereignty of the State are adequate and that we ought seriously to undertake the radical reorganization and reallocation of functions necessary to accomplish the elimination of all others. There remains to be mentioned another remedy for the excessive cost of local government- the controlling of local expenditures by State or district authority. It is familiarly referred to as the "Indiana plan." In that State ten or more taxpayers in a tax district may appeal to the State tax commission from the local budget or from a proposed bond issue. After hearing, the State tax commission may reduce the proposed appropriation or the amount for which bonds may be issued, or eliminate the item altogether. 298

Page  299 Costs and Taxes in Local Government Much can be said in favor of this method of controlling local expenditures. It has passed beyond the experimental stage in Indiana, and the information before me indicates it is supported by public sentiment. Colorado and New Mexico have modified forms of the Indiana plan. Ohio, Oklahoma and Oregon have adopted the idea, but the control is exercised through district boards. This general method of controlling the excessive cost of local government is worthy of consideration by the authorities of every State. If you will permit me to be conservatively prophetic, I foresee in all of the States of the Union in coming years a progressively strengthening movement for reform of the local governmental scheme. It has already, I believe, been much too long delayed and this fact has cost us many an unnecessary dollar in taxation, and on the other hand has deprived us of improvements and services in the way of better protection of our lives and property and of better facilities for orderly, happy living that we might have had with the same expenditure. We all of us recognize, I think, that much of the increase in the aggregate of governmental expense has been inevitable and necessary. Our limited glimpse today of the functions of local government has been sufficient to show that government has been quite properly called upon to assume an increasing number of responsibilities that once belonged to the individual and the family. In the same way the larger units of government have been properly and logically forced to assume functions that once belonged to the lesser units. The demands of a different sort of civilization and a different sort of national economy have forced us to redistribute the burdens which the public service imposes. Roads, for instance, are no longer merely local facilities. They are avenues of communication and channels of necessary commerce between all communities of a State and between a State and its neighbors, close and distant. So we have been compelled to build. them on a greater scale and to find new ways of meeting and distributing the cost as far as possible upon those who are benefited. We face the question of education and we find a mandate from 299

Page  300 Costs and Taxes in Local Government the State as sovereign that the children of all shall be given opportunities to learn. In fact it is more than a State mandate, for the American system of education is in fulfillment of a national purpose intimately associated with the great experiment in democracy we are still carrying on after the lapse of three centuries since our forefathers came here to undertake it and to pass its responsibilities on to us along with the inspired ideal which created them. The State's responsibility for education cannot be escaped by passing it on in one case to a city of teeming millions and in another to a dozen farmers scattered over miles of countryside. It is not solely on an altruistic basis that we consider the educational needs of the farm boy and girl as well as those of the tenement children in the city. The character and training of our fellow foot-loose Americans of the future are a matter of concern to us and to our descendants. They will have their part in making up the civilization in which we shall live a generation hence. We are beginning to recognize, too, that the public health is more than a local responsibility. Disease knows nothing about town lines, nor do bacilli undertake to inquire about local jurisdictions. Their carriers are on the public highways and riding in the railroad trains. If we care nothing about the fact that a farmer's children are dying of infection or malnutrition - and that can happen in the country, too - we can still give some thought to the weaklings and the sufferers whom we may have to support in some day not far off. Crime ceased to be a local matter and the criminal adopted a statewide or national range, if not a broader citizenship, long before we thought it necessary to do anything about it. But that is a question too far-reaching to discuss here further than to say that, along with the general administration of justice and of penology and along with the care of the defective and the insane, the problem of crime has long since transcended the scope of petty jurisdictions. State sovereignty alone can cope with it, and that must be reinforced by better and more adequate and less antiquated means of cooperation between the States. As to all these matters, I expect to see an increased measure of asu pino u cin n ep niIa- _rr-- --- ___..L0.10,a--ities by - the. St -Ate, -troug

Page  301 Costs and Taxes in Local Government one means or another. We have seen how the effort to equalize the tax burden has made the State the holder of the purse strings as to a large proportion of local expenditures. This creates a responsibility for wise expenditure that can hardly be avoided by the State, in justice to those who have been taxed on a statewide basis to replenish the State's treasury. This responsibility, it seems to me, is fairly certain to result in much closer and more authoritative supervision of all local expenditures. This will mean inevitably a closer integration of local authority with statewide authority, based on the fact that as to many functions some competent State authority with expert staffs and statewide information will possess both an advisory and a veto power over the use of funds for local expenditure. It seems entirely logical that local authority must consolidate,. eliminating many of the local government layers, in order to retain any appropriate measure of home rule over local affairs. Certainly the time has come to give serious consideration to the consolidation of a great many local jurisdictions of one kind and another. I should like the privilege of stating as forcibly as I can one general conclusion that has long been in my mind. That is, that too many of us have been lazy-minded in this matter of government. We like to talk in large terms about the comparative advantages and defects of democracy and autocracy; we like to admire patriotically the work of our forefathers in devising our forms of government or to criticise them as too slavish imitators, but we are terrifically dilatory in following our forefathers' example by seeking to plan and devise for our own immediate needs and for the future; particularly, we hate the details of government. We talk about Russia's five-year plan and the excellence or iniquity of Mussolini's system, 'in preference to giving consideration to the question whether a town supervisor is. good for anything or inquiring what a village health officer does to earn his pay., This may be because it is easier to form a judgment on matters that are more remote. I hate to think that it is because we prefer to have someone else form our judgments, for us. This suggets-tome-tat tosewhohod pblioficM shul

Page  302 Costs and Taxes in Local Government not be content merely to take the duties of their jobs as they find them and to carry them out according to precedent. Those who have had experience in operating the machine should be able to tell of its defects. I once heard of a public official who recommended that his job be abolished as useless. It would be a heartening and refreshing thing if there were a lot more like him. We heard a great deal during the late war about the challenge to democracy and I think it was a good thing for our complacency to learn that democracy was being challenged. But I think, too, that democracy is being challenged today just as forcibly if not as clamorously. The challenge is heard right here among us from all who complain about the inefficiency, the stupidity and the expense of Government. It may be read in the statistics of crime and seen in the ugliness of many of our communities. It is expressed in all the newspaper account's of official graft and blundering. It is written on our tax rolls and even in the patriotic-seeming text books that our children study in their schools. It looms large on election day when voters see before them long lists of names of men and women of whom they have never heard to be voted upon as candidates for salaried offices of whose duties and functions the voter has but the haziest impression. The men who addressed themselves to the task of laying the framework of our national Government after freedom had been won., wrote down in enduring words that their aim was to form ita more perfect union." In writing that ideal into the preamble of the Constitution of the United States, I think they set a task for us as well as for themselves. They were forming a new Government, suited, as they believed, to the conditions of their day, but they were wise enough to look into the future and to recognize that the conditions of life and the demands upon Government were bound to change as they had been changing through ages past, and so the plan of government that they prepared was made, not rigid, but flexible - adapted to change and to progress. We cannot call ourselves either wise or patriotic if we seek to escape the responsibility of remolding Government to make it more serviceable to all the people and more responsive to modern

Page  303 Economy and Efficiency in Local Government 6 5 (i Once Again the Governor Urges a Study of Local Government to Bring About Economy and Efficiency. February 29, 1932 To the Legislature: I INVITE your attention to a matter vital to the objects of economy and efficiency in Government. I have on other occasions pleaded with you to take some steps looking toward reform in the structure of local government in the State, but you have seen fit to delay action. I am returning to the subject now because I think the present condition of our affairs is such that any of you who think at all seriously about the burdens which Government imposes on the taxpayer and the urgent need for the maximum of service at the minimum of expenditure must realize that you owe a duty to the people of the State beyond the mere routine of legislation. I am asking you now most respectfully but insistently to lay aside partisan considerations and consider how we may find means to stop an appalling waste of public funds. I ask you to do more than merely to make a showing of economy by deferring to the future necessary expenditures. I ask you to consider a means of cutting away for all future time needless drains upon the public purse which I am advised by competent authorities run into scores of millions annually. We have a system of local government in this State whose general form and structure can be traced back beyond the birth of our Nation back to conditions in rural England before ever a colony existed on North American soil. To assert that this structure of Government fits the conditions under which we live today is to utter the most ridiculous of absurdities. It is no more fit for its purpose than an ox-cart would be fit for the task of supplying modern transportation between New York and Chicago. I am not alone in this belief. It is not a discovery of mine. It has been said over and over again by every authority on political science and every open-minded investigator of public affairs over a period of many years. 303

Page  304 Economy and Efficiency in Local Government Nor is it a condition unique in the State of New York. Other States have been the heirs of the same traditions of customs and government and they, like us, are hampered and harassed in the conduct of their affairs of government and their affairs of ordinary business by the same or similar archaic, expensive and wasteful forms of local organization. Their people are waking to an understanding of the situation. All over the land there is a demand for change and for reform. And other States are taking action. Some have appointed commissions and experts to study their problems, but others have gone beyond that stage and are putting sweeping changes into operation. Why should the greatest State in the Union lag behind? Are our people so rich and so well able to bear perfectly useless burdens of taxation that we should wait to be the laughing-stock of the people of every progressive commonwealth and an object of derision to every schoolboy who studies the elements of government? Do you imagine that any set of men can go on indefinitely fooling the people of the State into the belief that they are getting their money's worth in what they spend for local government? Do you imagine that it is possible to explain satisfactorily the fact that local taxation goes on piling up no matter how much of the burden of supplying necessary services to the localities is assumed by the State and financed by other means of taxation? I do not believe it can be done much longer. The people are beginning to realize that they are burdened with a host of useless officials and an intricate mass of local machinery of Government that cannot function efficiently in this present age and cannot properly supply the services that they have a right to expect of Government. And it is through this machinery of Government that 80 percent of the taxes, exclusive of Federal taxes, raised in the State, is being expended. Everywhere in this State in these difficult times the demand is being made for an explanation of high taxes. I have said that local officials have not been doing their full duty to the taxpayer in 304

Page  305 Economy and Efficiency in Local Government making savings that could have been made; and I stand by that assertion. But there is this to be said on behalf of all local officials: that while they might do better than they are doing - much better, in fact, for in many communities the conditions are scandalous - they cannot in fact do well; they cannot govern efficiently, for they have to work with a machinery of Government in which efficiency is not possible. You do not need to take my word for this. Nor do you need to rely exclusively on your own powers of observation. There is testimony by dispassionate and able observers. Two months ago I decided to seek expert help in presenting this subject in convincing light to you and to the people of the State who have imposed responsibility upon you. I asked the Institute of Public Administration to make a cursory study of the adequacy of the forms of local government in the State and to suggest what general lines of reorganization ought to be attempted. I wish that every one of you might see and might read carefully this report. I hope that your Honorable Bodies will order it to be printed. Obviously I cannot quote extensively from it here, but I shall cite a few significant paragraphs.... The authors of this report suggested a remedy. They went so far as to outline a general scheme of reorganization. I shall not present that plan to you at this time and I do not wish to be understood as endorsing the specific proposals there suggested. It provides only a starting point for discussion. I am asking instead your cooperation in devising a plan to remedy evils that must be as apparent to you as they are to me and to the authors of this report. In concrete terms, what I am asking is that you create a commission to study this whole matter of reorganization of local government which is so manifestly necessary and urgent so that a definite, well-considered plan on which we may agree may be brought to the stage of action. The expense of such a commission would be trivial in proportion to the actual financial benefits which a sound scheme of reorganization would inevitably bring about. It is the expense of whittling a plug to drive into a hole through which our resources are leaking away. f%05

Page  306 Economy and Efficiency in Local Government It seems plain to me that this ought not to be merely a legislative commission. We have had legislative commissions on this subject in the past and they have spent large sums of money and have brought in nothing worth while. I suggest and ask that you create a commission of practical experts, of business men, of Students of government, of men and women with real vision and with a determination to accomplish something practical and drastic - not mere tinkering. And it should go without saying that I hope you will see fit to create a commission which will act without any regard at all to partisan politics. If you recognize your duty to do this thing I think you should recognize your greater duty to do it on that basis. Obviously any such sweeping reform implies an amendment or a series of amendments to the State Constitution. It ought to be possible to lay these amendments before the next session of the Legislature. Such a series of amendments would no doubt authorize consolidation of many existing units of Government, possibly the elimination of towns altogether or at least a consolidation of their functions, and certainly the elimination of many offices that are useless. But I am not advocating any preconceived plan. I am urging instead that you in whom rests the power to propose amendments to our form of Government take the necessary steps to procure a plan that can be put into effect. Neither am I asking you to enforce any such fundamental change upon the people of the State. I think any amendment proposed should take into consideration the sound principle of home rule. I think the new form or alternative forms of local government to be embodied in the amendment or amendments should be made optional with counties or communities through referendum. If the plan is soundly conceived it will justify itself. I most earnestly urge that you create such a commission before this session of the Legislature is adjourned. It will be a simple decision to make, a simple act to perform, but a pledge of a sincere desire to bring about economy and efficiency in Government. 306

Page  307 x Better Housing

Page  308

Page  309 66 ([ The Governor Approves a New Multiple Dwellings Law. April 18, 1929 Memorandum filed with Senate Bill, Int. No. 459, Printed No. 1876., entitled: "AN ACT in relation to multiple dwellings, constituting chapter sixtyone-a of the consolidated laws." APPROVED. T4 His bill is the result of long and careful study of a situation involving many conflicting interests in the greatest city in the world. It seeks to improve living conditions affecting hundreds of thousands of our citizens. It is not a perfect bill. Nevertheless, though the effort has been unsuccessfully made many times before'to obtain agreement on such legislation, this bill meets with the approval of a substantial majority of civic, business, welfare and charity organizations, owners, builders, architects and tenants. Some organizations seeking very properly improvement in the so-called old law tenements are wholly dissatisfied because of the failure -of this measure to give adequate relief. So am I. That., however, is not a valid reason for disapproving the bill if it gives other needed relief; and I am convinced that it does. In old law tenements fire retarding requirements are increased, and yard toilets are forbidden. In new law tenements various improvements are called for, such as more stairways and larger courts and yards; and the distinction between the so-called apartment hotel and the legitimate apartment house is done away with. Tall buildings and towers are not forbidden; they must hereafter be built on a larger base area, thus preventing the streets from becoming mere canyons. On the whole, therefore, the merits of the bill outweigh the objections, and the average citizen will be benefited. One other point remains, a legal objection involving wide diversity 'of opinion. 'Members of the bar in whose ability and 309

Page  310 Address on Better Housing Conditions sincerity I have the highest confidence have appeared before me on both sides of the question. It is unnecessary to go into the details here. I can say truthfully that the only way to determine this matter is to obtain the opinion of the courts. That would without doubt be asked in the case of any new law affecting so vitally such important property rights. I am approving the bill in confidence that if its constitutionality is upheld it will go far to improve living conditions for large numbers of people, and that further legislation will be sought to give relief where this bill is inadequate. 6 7 (JAn Address on Better Housing Conditions (Excerpts). New York City. February 2 8, 193 0 THE marvelous skyline of New York City with its human beehives reaching ever higher and higher until the very clouds hide its towers from the street below., seems always to impress the visitor as the visible symbol of wealth and power. To me, however,, these vast structures have always seemed monuments of a thought finer and worthier than mere material prosperity. To me they represent the triumph of courage and vision,, the two qualities which have made civilization possible and, above all else, have raised men beyond the level of the brutes.... It is because I appreciate this courage, this determination, this vision which the men of New York have shown, that I make bold tonight to appeal to you to help in something which is still needed to make New York truly the city better as well as the city 310

Page  311 Address on Better Housing Conditions beautiful. You have just cause for pride in what you have achieved -the tall., slim buildings standing white and clear against the sky -but too often around their feet cluster the squalid tenements that house the very poor -buildings that should have been destroyed years ago, full of dark rooms where the sunlight never enters, stifling in the hot summer days, no fit habitation for any man, far less for the thousands of children that swarm up and down their creaking stairways. As you have envisioned and dared to create what we have not inaptly called the "9skyscraper," is it too much to ask you to cast your eyes lower and picture to your minds a city of apartment homes where light and air and sunshine are enjoyed by everyone? If you should make this a dream come true, you will have achieved that which will bring you far more than satisfied pride, an accomplishment which will bring you the most gratifying of all feelings, the consciousness that you have done much to 'Make life a happier thing, a pleasanter thing for thousands of your fellow men. Is this not a worth-while thing that I am asking of you? This is an old problem and many worthy souls, touched with compassion for the poor, have tried to solve it, but there lie tremendous difficulties in the path. It is easy to be philanthropic at the expense of others. But even if it were possible, it would not be fair and just to expect a few to bear the heavy financial burden which would fall upon those who convert their present properties to the far more expensive and less remunerative type of buildings. There are those who say there is no answer, that this city and all great cities must hide in dark alleyways and dingy street buildings that disgrace our modern civilization; where disease follows poverty and crime follows both. I confess I see no clear way, but I vision just outside these walls convincing evidence of what your courage, your vision, your resourcefulness have done, and I believe you will take this up as a body, in mutual conference, and apply your most practical knowledge to this matter of the housing of our poor., that you will find the way; and I believe that if you n311I

Page  312 Address on Better Housing Conditions find the way your courage and persistence will see that it is done. We recognize, of course, that close cooperation among all of the varied interests is necessary to the solution of a big problem in a big way; that mere action by one civic body can perhaps lead the way but cannot carry through a broad plan without the help of all of the other civic bodies. If New York City were a tenth of its present size, it would be a simple matter to bring the two or three civic bodies together on a common ground. We who know New York, and the magnitude of its geographical problems, its zoning and residential and business problems, understand that we must deal with the representatives of six or seven million people instead of with the representatives of six or seven hundred thousand people. Nevertheless, the city is notable for the public spirit of its leading business and professional men and women. Furthermore, I am confident that there exist a real sympathy and a great desire to help on the part of those in authority in the city government, and that the officials of the city and the boroughs will be glad to work with the civic organizations toward a common end. Cast your thoughts back fifty years. The slums of New York were even then a by-word throughout America. Countless books were written describing the horrible conditions of life among the poor in those days. It is a fact that the proportion of residents of this city who in those days lived under slum conditions was extremely large. These fifty years have shown a marvelous change for the better. The proportion of those who are compelled to live under uncivilizing and inhuman conditions has declined steadily, year by year. Nevertheless there are still many focal points, many whole districts scattered throughout the city where men and women and children are still herded together in a way which is not right according to the standard of 1930. We have a definite goal- the elimination of these conditions altogether - the seeking within our own lifetime of the day when we can say to the world: New York is a city without slums; New 312

Page  313 Against Multiple Occupancy in Tenements York is a city where every one of its 10,000,000o people can have living conditions which guarantee to them air and light and sanitation; New York is the first American city to get rid of the stigma of the slum. You who may be interested in the problems of transportation and its sister, trade., are of necessity in a position where you can help to a very great degree in the working out of the plans to bring an approach to this goal - the dwelling places of the inhabitants of our city linked up with the places where our people pursue their daily tasks. There is, indeed, a trinity of problems; the dwelling places, the working places., and transportation,, the connecting link between the two. It is for this that I appeal to you to do your very necessary part in this undertaking which is bound in the next few years to demand the attention of the public of the city and of the State. 6 8 (fThe Governor Vetoes a Bill Permitting Multiple Occupancy in Tenement Houses. April 4, 1932 Memorandum filed with Senate Bill, Introductory NO. 551, Printed No. 17,11, entitled: "AN ACT to amend the multiple dwelling law, in relation to letting of rooms within apartments in tenement houses." NOT APPROVED. THIS bill is a distinct step backward in proper tenement-house regulation. It proposes to legalize what is now illegal, to wit, the occupancy of a single apartment in a tenement house by more than one family.

Page  314 Cellar Occupancy in Tenement Houses Under this bill, any number of families could crowd into a single apartment without alteration of or increase in the number of stairs or public halls or the addition of the necessary sanitary, cooking or other ordinary housekeeping conveniences. Certain minor safeguards are proposed, which as a practical matter would be. ineffective and likely to be evaded. The bill is being urged on the plea that the present law is not being enforced. I do not believe that that argument is a sound one. The practical effect of the bill would be to make permanent and legal what in effect amounts to lodging-house conditions in buildings primarily designed for family occupancy. 69 (1IThe Governor Approves a Bill Limiting Cellar Occupancy in Tenement Houses. April 4, 193,9 Memorandum filed with Senate Bill, introductory No. 1526, Printed No. 2o82, entitled: "AN ACT to amend the multiple dwelling law in relation to cellar and basement rooms in tenement houses." APPROVED. THIS bill permits certain cellar occupancy for janitors only up to April 1, 1933, without the payment of rent. This is a temporary and final moratorium and I am firmly convinced that when this moratorium is up, this kind of cellar occupancy should be permanently discontinued. The time for making these basement rooms conform to the new standards is already past. I serve notice on any landlords who have not yet acted in accordance with the purpose of the law that 3 1 4

Page  315 Cellar Occupancy in Tenement Houses I will do all in my power to prevent any further extension beyond April 1, 1933. They should act now and not be in the position of law-violators next year. 315

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Page  317 XI Prohibition and Repeal of the Eighteenth Amendment IN ADDITION to the documents printed in this chapter the reader is referred to my campaign speeches during the campaign of 1928 in which I stated my opposition to the enactment of a new State enforcement statute (see, for example, Item 7 of this volume), and to my speeches in the campaign of 1930, in which I definitely advocated the repeal of the Eighteenth Amendment (Items 87 and 89 of this volume). See also Items 81, 131 on page 653, and Item 134 of this volume.

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Page  319 7 0 ({The Governor Advocates Repeal of the Eighteenth Amendment. September 9, 1930 Dear Bob: IWANT to tell you how very happy I am that you are slated to be the temporary chairman of the Democratic State Convention, and further to tell you of some of the matters which I think should be stressed at the Convention. On the matter of the serious unemployment situation, I regret to say that my trips to practically every part of the State this summer confirm the fear that the depression exists not only in a few of the larger cities, but extends to all of the smaller cities and even to the villages and rural districts. You know this situation so thoroughly through your excellent work in the Senate, that I shall not attempt to point out to you the primary causes of this depression, or that it is nationwide as well as statewide. I shall, however, send you data showing the very important practical steps which have been taken by the State Government to improve conditions in our State and also my suggestions for an immediate study of the broad subject of unemployment relief by a contributory system and not dole methods. I shall also send you a brief outline showing the very important steps which have been taken during the past two years for social welfare, notably the prison and hospital programs, the organization of the parole system, etc.,, etc. You are also familiar with the great strides which have been taken this year in relation to the development of State-owned water power and a closer control over public utilities in general, both with the purpose of securing for the consumer more equitable rates. The very notable achievements in farm relief and in the development of a permanent farm policy are described in my various messages to the Legislature, and I hope that you will read them. The farm population has been relieved of paying approximately thirty million dollars a year of highway tax, real estate tax and school burdens, and we are definitely working out a State program for dirt road improvement.

Page  320 Repeal of the Eighteenth Amendment Advocated Old age security against want is provided for by the first measure along this line ever adopted by the State. It goes into effect on January first next, and applications are now actually being received. These are only a few of the high points, and it is worth while to note that all this progress has been made only after determined opposition by the Republican legislative leaders. Finally, but of very great importance, is the subject of prohibition, which is of great moment in every part of the State. I am convinced that this is true not only in the large cities but also in the smaller communities and in the agricultural districts. It is my belief that in the State of New York an overwhelming public opinion is opposed to the Eighteenth Amendment. The crux of the matter is that the Eighteenth Amendment has not furthered the cause of a greater temperance in our population, but on the contrary (quoting from language used in a resolution adopted by the American Legion) it has "fostered excessive drinking of strong intoxicants" and has "led to corruption and hypocrisy.,"P has brought about "disregard for law and order" and has "flooded the country with untaxed and illicit liquor." I personally share this opinion. Literally dozens of schemes have been proposed by well-meaning citizens seeking means and methods of improving the existing situation while at the same time leaving the Eighteenth Amendment in full force and effect. The language of the Eighteenth Amendment is so direct and so clear that it seems to me the time has come when these people should no longer try to beat about the bush. It is not merely a matter of the Volstead Act or the Jones Act or any other piece of mere legislation, Federal or State, under the Eighteenth Amendment. It is the Amendment itself. The force and effect of the Eighteenth Amendment can be eliminated, of course, only by a new constitutional amendment. This would supersede and abrogate the Eighteenth Amendment and substitute therefor a new constitutional provision. That is clear. The fundamental of a new amendment must be the restoration

Page  321 Repeal of the Eighteenth Amendment Advocated of real control over intoxicants to the several States. The sale of intoxicants through State agencies should be made lawful in any State of the Union where the people of that State desire it, and conversely the people of any State should have the right to. prohibit the sale of intoxicants, if they so wish, within their own borders. This recognizes the undoubted fact that in a Nation of such wide extent and with such diversity of social conditions public opinion and practical administration in regard to methods of seeking a greater temperance differ very greatly in different parts of the country, and even in different parts of the same State. There is no doubt that in many States the actual sale of in'toxicants would continue to be prohibited at least by statute whereas in many other States a reasonable sale of intoxicants through State agencies would in the opinion of the great majority of citizens of these States do much to bring about less intoxication, less corruption and bribery, and more regard and respect for law and order. This latter applies definitely to the State of New York. It is therefore clear to me that it must remain not only the right but the duty of the Federal Government to protect States which continue to prohibit the sale of intoxicants. Furthermore, I am positive in saying that there must be some definite assurance that by no possibility at any time or in any place shall the old saloon come back. Therefore, the control of any sale of any intoxicants should be wholly in the hands of the States or of State agencies. Finally, there should be definite recognition of the extension of home rule to, the lower subdivisions of government, in other words, a recognition of the right of cities, villages or towns by popular vote to prohibit the sale of intoxicants within their own borders, even though intoxicants may be sold in other parts of the State through State agencies. So widespread in this State is the resentment against the results of the Eighteenth Amendment, that the time has come to stop talking and to seek action. Very sincerely yours, Hon. Robert F. Wagner New Yok Cit XTZNIA~r Ve%*17 Ol321

Page  322 Steps Toward Repeal of the Eighteenth Amendment 71 4(The Governor Approves a Bill Petitioning the Congress to Take Steps toward Repeal of the Eighteenth Amendment. March 31, 1931 Memorandum filed with Assembly Bill, Int. NO. 4, Pr. NO. 4, entitled: "AN ACT on the application of the legislature of the State of New York petitioning the Congress of the United States of America to call a national Constitutional Convention to repeal Article Eighteen of the Constitution of the United States." APPROVED. UPTO the present time five joint resolutions and ten different bills have been introduced in the Legislature, all of them calling for some method of changing the Eighteenth Amendment of the Constitution of the United States. Of these resolutions and bills a number have already been passed, of which this is one. I am informed that several others will without doubt be passed by the Legislature between now and final adjournment. As several members of the Legislature have stated the situation to me, "a majority in both houses will vote aye on any and all legislation which is labeled 'wet' regardless of what the resolution or bill contains."9 The truth of this remark is fairly well demonstrated by the willingness of the Legislature to support every suggestion that looks to a change in the Eighteenth Amendment. What is really significant of this frame of mind in the Legislature is not the remedies proposed or the fact that there is no unanimity of opinion as to method, but the demonstration given by the majority in the Legislature that they believe an overwhelming sentiment exists in this State which asks for immediate action to change the Eighteenth Amendment. I believe that this sentiment does exist throughout this State and that the greater part of this sentiment is based on two righteous and sane objectives: first., to eliminate the fundamental source of the greater part of modern organized crime; and, second, to promote a greater temperance. To this policy, as I have repeatedly stated, I subscribe. In the case of this particular bill it is necessary to call public 322 t

Page  323 Steps Toward Repeal of the Eighteenth Amendment attention to the fact that the Legislature is asking of Congress an impossibility. It says: "The Legislature... applies to the Congress... to call a National Constitutional Convention to repeal Article Eighteen... and no other article of the Constitution." Anyone familiar with the Constitution of the United States knows that no authority is given to the Congress to call a convention to repeal one article and no other. It is, of course, within the power of a convention when called to confine its recommendations to one article, but it is also clearly within its power to propose such other amendments to or changes in the Constitution as it may see fit. Article V of the Federal Constitution clearly confers upon the Legislatures the right of applying to the Congress for the calling of a Constitutional Convention. For the Governor to veto this bill would be equivalent to his denying to the Legislature their constitutional right to make such application. I do not feel that I am warranted in denying this right to the Legislature by my veto power, even though the present bill is faulty in its language. I am therefore signing the bill in spite of its defect, in order to cooperate with the Legislature in asserting this right which they have under Article V, and above all in order to transmit to the seat of the Federal Government the prevailing sentiment in my State that something be done at once with the Eighteenth Amendment. The bill will be transmitted in accordance with its directions to the Senate, to the House of Representatives and to the Secretary of State of the United States. 323

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Page  325 XII The Welfare of the Underprivileged, the Crippled, and the Handicapped IN ADDITION to the documents printed in this chapter the reader is referred for material on the same general subject to Items 5 and 12 of this volume.

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Page  327 72 ([An Address on Rehabilitation of the Mentally and Physically Handicapped. Chautauqua, N. Y. July 13, 1929 T THE end of a week's trip across the State of New York inspecting State hospitals and schools, it is natural that my thoughts have run to the tremendous strides made by mankind in health and in education during the past generation. Take some comparisons. It is less than fifty years ago in this State, and an even shorter time in some other States, that the care of the insane was definitely recognized as a responsibility of the State itself. Many older people can remember the day when mentally deranged members of families were kept at home in seclusion, or else locked up in some local institution which treated the unfortunate victim as a prisoner and not as a patient. Today, because of an awakened public responsibility and because of great strides in medical science, mental derangement is treated in modern, well-equipped, State-conducted institutions as an illness from which a growing number of patients may and do recover. It is a fact that the percentage of cures is increasing year by year. Take then the class of cases which falls under the head of mental deficiency, and not insanity. It is only a few years ago that the backward child, the boy or girl who did not seem "normal," was classed as an imbecile or an idiot and practically laid to one side by the family in the community. Today the State recognizes the obligation of turning the backward child into a useful citizen, able to take his or her part in life, and modern science proves that this end can be accomplished in the great majority of cases. Take next the boys and girls who are broadly classed as juvenile delinquents. A generation ago these children were given either sharp physical punishment in their own localities and turned adrift, usually to repeat their petty crime and misdemeanors, or else were thrown into a common jail and forced to associate with hardened criminals. Today, Government recog327

Page  328 Rehabilitation of the Crippled nizes its responsibility to the juvenile offender, and the fact that i n the large majority of cases these boys and girls can be made lawabiding, hard-working citizens. Again the records show that the millions of dollars expended by the State in this great cause are well invested, and that potential criminals are, in large numbers, being turned into law-abiding citizens. Medical science and a new public conscience are also obtaining magnificent results in the field of physical, as opposed to mental, disabilities. At one of the institutes for the deaf the other day I spoke of the deaf and dumb. The superintendent corrected me immediately, saying: "There are very few deaf and dumb people in the world. They are deaf and, as a consequence, have not been able to speak, but they are not dumb." The instruction of these deaf people is working wonders. Girls and boys are being taught to read lips and to make themselves understood sufficiently to make their own way in the world. It is an interesting fact that there is ready employment for all graduates of our deaf schools. Next we come to the problems of the cripples. A generation ago the crippled had no chance. Today, through the fine strides of modern medical science, the great majority of crippled children are enabled, even though the process may take years, to get about and, in many cases, find complete or practically complete cures. In other words, that large part of humanity which used to be pushed to one side or discarded is now salvaged and enabled to play its own part in the life of the community. This sketch of the development of a generation brings one naturally to the question, What can be done to take further steps in the generation to come? The answer is a simple one. Further progress must of necessity depend on a deeper understanding on the part of every man and woman in the United States. Knowledge of the splendid results already accomplished is not widespread. You can go into thousands of farming districts in this State and you can go into thousands of closely populated wards in our great cities and find ignorance not only of what has been accomplished __O

Page  329 Rehabilitation of the Crippled but of how to go about utilizing the facilities which we already have. There are literally hundreds of thousands of cases of boys and girls in the United States hidden away on the farm or in the city tenements, boys and girls who are mentally deficient or crippled or deaf or blind. Their parents would give anything in the world to have their mental or physical deficiencies cured, but their parents do not know how to go about it. In other words., education as to simple facts is of -vital importance in every State of the Union, and this education is necessary not only for the dwellers on the remote farms and in the crowded tenements, but it is equally necessary for millions of people who now consider themselves well educated. I wonder, for example, just how many members of the legislatures in the forty-eight States, just how many members of the Congress of the United States know what is being done by their own State Governments or by the Federal Government in taking care of the mentally or physically crippled. I wonder how many of them have taken steps in their own home districts to bring forward those who need care and are now not getting that care. I wonder how many so-called leading citizens in any town in the United States know what facilities are offered by State and private institutions, or know what great possibilities for cure exist today with the development of modern medical science. In other words., the progress which will be made in the coming generation will depend not only on the development and extension of governmental activities and of medical discoveries, but just as important, on the education of the already so-called educated people in this development. Through their efforts thousands of children will receive benefits of modern science which they would otherwise not receive. This is a problem that demands a crusade. The progress of the past fifty years has been great, but we have marched only a short way. The extension of the work must go on until every child in the United States can be assured of the best that science, Government assistance and private aid can give. It is a task that appeals to our humanity, but it is a task that

Page  330 Address before the State Charities Aid Association appeals also to our future economic success. Every citizen, man., woman or child, who is unable to take his or her part in the normal life of modern civilization is a drag on our economic life. Good humanity and good economics demand that the work must go on. 73 (An Address before the State Charities Aid Association. New York City. January 17, 1930 THE most striking and important. difference between the civilization of today and the civilization of yesterday is the universal recognition that the first duty of a State, and by that I mean a Government, is to promote the welfare of the citizens of that State. It is no longer sufficient to protect them from invasion, from lawless and criminal acts, from injustice and persecution, but the State must protect them, so far as lies in its power, from disease, from ignorance, from physical injury, and from old-age want. It is difficult for us who live in the present day to realize what a tremendous change this is from the time, comparatively recent in the world's history, when the State was the instrument of despots for their own aggrandizement and the great body of its citizens were mere serfs, chattels., or cannon fodder at the service of their overlords. We speak lightly of this being the era of Democracy without realizing what a tremendous change has been brought about, or how it has revolutionized the everyday existence of every one of us. In this building up of, a theory of government "by the people, for the people"9 our country has been the leader of the civilized nations of the world, and I think I can proudly add that our State has been the leader in our country. Nor do I think it an exaggeration to attribute our progressive position very largely to intelligent, tireless and systematic efforts, for almost sixty years, of the State Charities Aid Association. For while there has been a constantly growing understanding of this real and most important 330If

Page  331 Address before the State Charities Aid Association function of government, legislation, as is always the case, has followed with lagging and hesitant footsteps. It is, easy to say that the State must look after the welfare of its citizens, but to translate that into terms of law and to create additional agencies of government to make such laws effective is not an easy matter, and can be expedited only by the rousing of public attention and the wise direction of public interest on the part of unselfish organizations such as yours. But while we have made commendable progress toward translating indefinite ideals into definite ideas and again converting these ideas into actual statutes, we have still a long road to travel. I want particularly to stress my belief that the time has now arrived to elevate our State Department of Public Welfare to the position of importance and independence which it deserves in our State machinery. It has been the Cinderella of our Government household. It has been entrusted, haphazardly, with all sorts of odds and ends of things - the household tasks, as it were, of our State establishment - which involve hard work and little glory. Under our new State Constitution it obtained its first real recognition as a separate and individual function of our Government, but I believe it should be given far more important duties and far more support and dignity than have yet been accorded it. And I want to ask your powerful aid, not only for myself but for those Governors who will succeed me and who, I feel sure, will be equally impressed with the importance of its work in eventually., by carefully considered and not too hasty legislation., raising the Department of Public Welfare more nearly to a level with its proud sister, the Department of Education. This must be done step by step, for as yet we are but laying foundations, and an error in a foundation will eventually bring about the downfall of however perfect a structure is erected on it. Let me mention briefly some of these matters in which your society has been particularly effective in the past and to which the State must give increasing aid, through our Department of Public Welfare, in the future. First of all, take your work in connection with neglected or de

Page  332 Address before the State Charities Aid Association pendent children. You are holding a twentieth anniversary conference of the County Children's Agents representing County Children's Committees of your society. I wonder if the public realizes that forty counties of our State have profited by their intelligent assistance, and on behalf of the State let me gratefully acknowledge the cooperation they have shown with our County Commissioners of Public Welfare, judges of our Children's Courts, and our Board of Child Welfare administering mothers'9 allowance. There are only four counties where such committees do not exist, and I hope you will soon be able to show a perfect score. The policy of preventing the breaking up of homes and of keeping children under home influence through State assistance, as opposed to the old way of providing institutions for their care after home life had been destroyed, has done more, and will do more, for the good of the people of this State than I think any of us realize. To your society I look, as well, for unceasing and loyal assistance in my efforts to secure at least a measure of comfort for those who find old age has overtaken them and who have been unable to lay aside, generally without fault of their own, material provision against that time. As you know, there is a commission working out some practical means of systematically aiding aged and dependent citizens, and I feel sure that their recommendations will be carefully studied by all your members, and, if they are found wise and worthy, will receive your vigorous and wholehearted support.. Then there is another very important matter, and that is our public health. It is becoming increasingly apparent that illness is a thing which can be prevented as well as cured. There is much sound common sense in the traditional Chinese method of paying the doctor for the days you are well instead of for the days that you are sick. Here your society has been and can be particularly helpful because there are limits beyond which., under our theory of home rule, the State cannot go. Much must be done by the counties themselves, and I hope that a centralized system of 332ed1

Page  333 Address before the State Charities Aid Association county health units will become a recognized and necessary part of every county government. I have left to the last the most pressing and important matter of all -what we now call "mental hygiene." Under that head comes the entire tremendous problem of the insane and the mentally defective, a problem already heavy which, I am sorry to say, is increasing under the stress of our swiftly moving modern civilization. Here, as in the case of our criminals, society too long has been content to concern itself with self-protection. It was not so very long ago that the imprisonment of the criminal and the virtual imprisonment of the insane were considered -in much the same light. We have progressed a little more rapidly from that unenlightened viewpoint in the case of the mentally diseased than in the case of the criminal, because here there is obviously no confusing question of moral delinquency involved. We now realize that we must endeavor to cure instead of merely to incarcerate in both instances. But even in the matter of the mentally diseased or defective our facilities for cure are still woefully inadequate. No small part of the large expenditure required by the State this year is made necessary by our past neglect to enlarge these facilities as they must be enlarged from year to year. The further step, which is something that must be undertaken in each case., is the prevention of both insanity and crime. This has just begun. Money spent for prevention represents many times that amount saved by the State in the future. As a State we have done practically nothing toward the prevention of crime and insanity. It is something I hope we will seriously take up immediately.... 333

Page  334 Assistance for the Crippled 74 (Radio Address on a Program of Assistance for the Crippled. February 18, 1931 My Friends: I BELIEVE it was announced that I was going to talk today on why it pays to do things for crippled children and, I might add to that, other kinds of cripples - grown-up cripples as well. I want to talk, of course, about the big human side of relieving distress and helping people to get on their feet, but at the same time I think there is another phase of the broad question of looking after cripples to which some people have never given much thought - the financial side. For instance, I am told that there are somewhere between three and four hundred thousand cripples in this country today - I mean cripples who are pretty thoroughly put out of business, who cannot get around, who cannot perform any useful task- people, in other words, most of them children, who have to be looked after by other people. Think of it, three or four hundred thousand people out of our total population. This is a tremendous percentage. Now let us figure for a minute in simple terms. Suppose for the sake of argument that three hundred thousand people are out of useful work when they grow to be older and that each one of them, if he could work, could produce one thousand dollars' worth of new products every year. In other words, if the productive value were one thousand dollars a year apiece, three hundred thousand of them would mean three hundred million dollars added to the annual productive capacity of the United States. That is worth thinking about from the purely money end of things. If we could restore every cripple in this country to some kind of useful occupation it would do much to help the general wealth and well-being of the United States. People know well that restoring one of us cripples - because as some of you know, I walk around with a cane and with the aid of somebody's arm myself - to useful occupation costs money. Being crippled is not like many other diseases, contagious and 334

Page  335 Assistance for the Crippled otherwise, where the cure can be made in a comparatively short time; not like the medical operation where one goes to the hospital and at the end of a few weeks goes out made over again and ready to resume life. People who are crippled take a long time to be put back on their feet - sometimes years, as we all know. Take it from that angle. Suppose for the sake of argument it costs one thousand dollars a year for a crippled child to be put back on his feet and that it takes five years to do it. The cost to the community - because it has to be community effort in most cases, for most families cannot afford it - is five thousand dollars to put that one individual back on his feet. Remember that most of the cripples can in some shape, manner or form be brought back to useful life. Suppose they are brought back so that at the time they are 20 or 21i they have before them the expectation of a long and useful life, perhaps at least 40 years more. During those 40 years each one of them ought to be able to earn one thousand dollars a year. There is forty thousand dollars added to the country's wealth, at a cost of only five thousand dollars. So the net saving or profit to the State or country as a whole is thirty-five thousand dollars. That shows it pays from the money point of view., if from no other. At the present time in the United States, they tell me, there are about thirty thousand new cases every year of people who become crippled for one reason or another. The first thing we are tryi Ing to do everywhere is to cut down that number of new cases; and I have a letter from my old friend Daddy Allen, whom a great many people all over the United States know as the man who started the International Society for Crippled Children which has branches in every civilized country of the world. He tells me that work is going on in every State in this Union to prevent people from getting crippled, and he hopes that as a result, within a short time, instead of having thirty thousand cases, we shall be able to cut it down to 20,000. It would be a tremendous saving if by preventive measures we can keep ten thousand children every year from becoming crippled. Of course, modern medical science is trying to prevent diseases 335

Page  336 Assistance Jor the Crippled and troubles of all kinds just as much as it is trying to make cures. This calls for better understanding on the part of the people, for better education on the part especially of the parents, for better conditions surrounding the birth of children, better care in the home, and, equally important, prevention of many unnecessary accidents of all kinds - automobile accidents, train accidents, and so on. So the first step is to work for the prevention of crippling. This covers the great advances that have been made in preventing industrial accidents - unnecessary injuries that come to people who are at work not only in factories, but also in the field, in nearly every State of the Union. The United States now is working hard and spending much money to prevent these industrial accidents. They are far too common, but much has been accomplished and more will be accomplished in the years to come. Now for the second step - the work of finding cripples all over the United States. We in the State of New York have had surveys made not only in the cities, but also in the country districts and even out to the remote farms that are not reached by R.F.D. carriers. We have had surveys made and have found literally thousands of children and grown-ups who were crippled and had no medical care of the right kind. There are probably today not only hidden away in the big cities, but also in the agricultural and mountainous parts of the United States, other thousands and thousands of crippled children who have never had any proper care., who have never been to a doctor, who have never been to a hospital or been looked over to see whether they could be brought back to useful life. That second step of finding the cripples is gradually being carried out. Then the third step - the matter of diagnosing what the trouble is. This step is primarily for the doctors; and yet it is true that our good doctors - even the general practitioners - cannot in many cases consider themselves experienced in what is really orthopedic work. In other words, the average practitioner has to go to a specialist when it comes to treating certain types of patients. All over the United States we are establishing, more and 336r

Page  337 Assistance for the Crippled more., clinics run by cities, schools, counties or the State, clinics that are within reasonable travel distance of every home, clinics to which the crippled children can be taken. After they have become crippled or after the people in search of them have found them they are taken to the clinic and the case is diagnosed. Great strides have been made in the past few years in providing facilities for the operations that are essential in some cases. But the medical profession is also realizing that many operations can be avoided through a system of plaster casts,, massage exercise and other forms of treatment. The main point is to get the case properly diagnosed by the right kind of doctor in the first instance. Then comes the treatment. The next medical step, which up to this time has not been developed far in this country, is "after care." After the cause of the trouble is known and the first remedies for it have been applied and the child is able to go home, the treatment must not stop; the parents must be taught what to do. Visiting nurses go in occasionally to see how the child is getting on, and furthermore we are developing new methods by which "after care" is being given in schools for crippled children. We do not want to take the children away from their education, of course, and many schools are putting in special facilities for crippled children where along with their education they can be given the right kind of medical treatment. The point to remember is that the overwhelming majority of children who become crippled can with proper treatment be restored to a useful., active life in the community. It seems to me from somewhat wide experience not only of my own, but of other people, the average cripple in this country has about the finest natural disposition of anyone in the community. There is something that comes to crippled children that gives to them happier, better dispositions. They are seldom cross, they are seldom fretful; we nearly always find them ready to cooperate; we find that they turn out well as scholars and that they are ready to assist in every way in the treatment provided for them.... I want to repeat that we owe to every crippled child in the United States a chance to come back, not merely from the big., 337 ý

Page  338 Assistance for the Crippled broad point of view of humanity. I want to emphasize again that by restoring all of these tens of thousands of children to useful, normal lives, we shall be doing a fine thing, carrying out a great objective for the Nation. I know that we shall have your cooperation. From you who are crippled and you who are absolutely normal we shall have help in furthering this great purpose; we must search out the cripples from every nook and corner of the land; we must do through education everything possible to prevent crippling; we must provide the right medical care; we must spread "after care" to the homes throughout the land. I am glad to have had this opportunity to say these few words today. We are enlisted in a great cause, one of the greatest causes of humanity that exists in America today. 338

Page  339 XIII Executive Budget Fight Separation of Legislative from Executive Functions INTRODUC TORY NOTE: THE DISPUTE with the Republican Legislative leaders over the executive budget in New York involved the question as to whether or not the Legislature through its leaders could interfere with the executive function of spending moneys which the Legislature had appropriated for administrative purposes. The story of the contest in the Legislature and in the courts is told in the documents included in this chapter. They are of additional interest because a similar question arose in 1937, in connection with a Federal appropriation for the New York City World's Fair in which the Congress sought to retain control of the expenditure of the funds appropriated. I vetoed that bill in 1937 for substantially the same principles as controlled the executive budget fight in the State of New York. See also Item 194, VOL. II. Although the Legislative branch of the Federal or State Governments should have complete discretion as to the amount and purposes of appropriations, subject only to veto power, it should not be permitted to interfere with the functions of the Executive in expending the funds appropriated so long as the purposes of the expenditure are those provided by the Legislative branch, and the disbursements are audited by the Comptroller. This successful fight in Albany in 1929 was of the highest importance to the maintenance of our forms of government, State and Federal. It will do much to maintain that balance and independence between the two branches - Legislative and Execu339

Page  340 Note: Executive Budget Fight tive -which are so necessary to successful functioning of representative government. The issue - whether it be in a State capital or in the national capital- is this: The Legislature appropriates under specific laws and the Executive makes the expenditures; shall the Legislature, after the enactment of the law, have any form of control over the expenditure through an agent or agents authorized to make their own interpretations of the law? The answer is obviously no. If the language of the law is not legally clear, it is incumbent on the Executive, through what is known as pre-audit, to pass on the proposed expenditure; and in the event of doubt, to obtain the opinion of the Attorney General who is the principal law officer of the State or Federal Government. The Legislature of a State or the Congress of the United States is fully entitled to conduct accountings or post-audits just as is done each year by corporations through the hiring of outside accountants. There is thus a clear line of demarcation - a line which follows the obvious need to keep separate the Legislative and Executive functions of our system of government. The courts definitely recognize this separation. It is a matter of principle, and the principle must be supported by all who believe in our constitutional methods. 340

Page  341 7 5 ( The Governor Asserts the Fundamental Principles of an Executive Budget, and Announces His Determination to Defend Them in Court. April 12, 1929 I.HAVE given most careful consideration to the steps which, as Governor of the State, I should take to settle the grave doubts which I am advised exist as to the constitutionality of the attempts of the Legislature to supervise and control.through two members the spending of appropriations previously made for the support of the State Government. The question at issue is one of far-reaching importance, and involves fundamental principles of our American political institutions which I believe to be vital. It is not a controversy over particular items in an appropriation bill but involves a principle intimately bound up with the new budget system since its inception. The object of all the agitation, discussion and disinterested service on the part of leading citizens which led up to the reorganization of the State Government and the adoption of the Executive Budget by constitutional amendments cannot be lightly brushed aside. The object clearly was to simplify our administrative machinery, to make the Governor a really responsible executive and to define and fix for all time the separate and distinct functions of the executive and the Legislature. A movement in the same direction has spread all over the country and to the National Government at Washington itself. Since 1910o in every part of the country, in every newspaper, in every political platform, and in the program of every civic organization, there has been growing demand for consolidation of departments under a responsible executive, the establishment of an Executive Budget, and fixed responsibility of administration by the executive head after appropriations are made. Surely the tendency everywhere has been away from the confusing of legislative and executive functions, toward the real separation of powers and the centralization of duty and responsibility in the executive. 341 '

Page  342 Principles of an Executive Budget This subject was threshed out in the Constitutional Convention of 1915. Administrative consolidation and the Executive Budget were advocated by Elihu Root, its President, who in a memorable speech from the floor insisted that these reforms were vital and the most important of all subjects before the Convention. The program of the Constitutional Convention to create responsible State government was taken up by civic agencies and leaders in the community. After over ten years of discussion, government reorganization was finally written into the Constitut,ion of this State by the people by an impressive majority. The Hughes Commission was appointed to work out the details of consolidation, and they recommended that the Executive Budget be written into the Constitution and stated that government -reorganization would be weak and ineffective without it.... The people of the State adopted the Executive Budget amendment in the fall of 1927. The first constitutional Executive Budget was submitted by me on January 98th of this year, and the question now confronting me is whether I shall for the sake of expediency approve a practice now attempted to be introduced and extended which I believe to be fundamentally unsound and which I am advised would be violative of the State Constitution. Visible, open, responsible budget making was the objective sought by the people in amending the Constitution. The Constitution provides not only that the budget shall originate with the Governor on recommendation of department heads and after hearings and that it shall contain a complete picture of the State's financial condition and proposed expenditures, but also that the budget shall be altered by the Legislature only by striking out or reducing items or by adding items in a separate place distinct from the rest of the budget and each referring to a single object or purpose. The budget was to become law without the Governor's signature, except as to new items which were to be subject to the Governor's veto in whole or in part in th 'e usual way. The Legislature deliberately violated the spirit and letter of the Constitution. They cut out whole sections of the Executive Budget without indicating by brackets or in any other way what

Page  343 Principles of an Executive Budget had been deleted. They then added new items here and there throughout the budget, not in a distinct and separate place, and this was done in such a way that no one who did not compare hundreds of pages of each bill could figure out what had been done. They not only cut out and reduced items in this way, but they then restored the same items with different phraseology and conditions so as to produce in effect a totally different result. If this practice is followed to its logical coriclusion, all that any subsequent Legislature need do is to cut out all of the Governor's budget the minute it reaches them and start an entirely new one of their own, or by altering the controlling language change completely the intent and purpose of every item in the Governor's budget, and set up a control of every administrative agency by a committee controlled by two of their members as officers. What is the good of amending the Constitution to consolidate the executive branch of the Government and to fix the duty and responsibility of budget making in the Governor, and what is the use of writing the executive budget into our fundamental law if the very first Legislature can nullify the reforms adopted by the people themselves? The question before the people of this State in connection with this year's budget appropriations is whether administration is to be in the hands of the Governor elected by all the people to be the head of the executive branch, or whether it is to be shared between the Governor and the Legislature in such a way that all responsibility will be lost. The present legislative leaders take the view that they should have a definite part in administering the Government all the year round and supervising and controlling the expenditure of appropriations. They contend that if furniture is to be bought for the State offices, they shall decide exactly what chairs, desks and coat hangers each department shall have,, how they shall be bought and what shall be paid for them. These leaders believe that when a sum of money is appropriated for construction or repair work, other than by contract, they shall decide how many carpenters, mechanics or engineers shall be employed, when they shall be employed and at what salary. 3 43n

Page  344 Principles of an Executive Budget Every man and woman in this State with practical experience must know what this means. On this theory, if twenty-five thousand dollars should be appropriated for necessary construction or repair work at a public institution or on a public improvement, if the work is to be done with the forces of the institution or department, as it must be in many cases, and otherwise than by contract, the department head must first have the separate approvals of the Governor and of each of the Legislative Finance Chairmen. This applies to plumbing, sewage,, water supply, road work and other construction and repairs. It is impossible to segregate or detail all of these items in advance. It would be improvident in the extreme to attempt to provide in advance exactly what work can be done by contract and what should be done directly by department heads. No one can foretell what the low bid will be in the case of contracts and exactly how much money will be left. It is very difficult at best and impossible in some cases to tell in advance -just what forces will be needed to complete the work and when they will be needed. Nothing could be more uneconomical than to force our administrators in all cases to figure out all these things in advance. No sane business man would think of doing it. If two members of the Legislature must be followed around the State and consulted before every bit of construction work can progress., we shall never be able to carry out with reasonable dispatch and economy the great program which we have undertaken nor shall we be able to administer our public improvements when they are completed. The constitutional amendment reorganizing the State government provided that no new departments should be created. It reduced the number of elective officers, leaving only the Attorney General and Comptroller, besides the Governor and Lieutenant Governor. The Attorney General is a law officer and the Comptroller is really an auditor, and neither are administrative officers. The amendment was intended to do away with the service of legislators on boards and commissions such as the land board. The deliberate purpose of this amendment was to centralize executive responsibility. If two legislators can be set up to share this respon344

Page  345 T he Executive Budget Victory sibility with the Governor, the whole intent and purpose of reorganization will be frittered away. I note that the legislative leaders before acting on the second budget bill sought the advice of the Attorney General who informed them that their procedure was proper and Constitutional. The executive as well as the legislative branch of the State government has a vital interest in the proper solution of this problem, and I have therefore as Governor sought not only the advice of my official counsel but also the independent advice of eminent counsel. Mr. William D. Guthrie's high reputation as a Constitutional lawyer is national, and he has agreed to present the administrative viewpoint in this matter. The joint opinion of Mr. Guthrie and Mr. Edward G. Griffin, Counsel to the Governor, has been published. I am accepting the second budget except the items objected to by them and with such other disapproval as to new minor items as seem to me to be required. Mr. Guthrie and my official counsel are prepared to consult with the Attorney General, or with any special counsel who may be designated by the Attorney General or by the Legislature, so as to facilitate a prompt disposition in the courts of any question which may arise as the result of my objections to the second budget bill. I stand firmly upon the principles laid down by them in their opinion. I believe them to be sound and statesmanlike, and I am convinced that the court will sustain their views. 7 6 ( The Governor Discusses the Significance of the Executive Budget Victory. Address before the City Club, New York City. November 23, 1929 THIS is the first opportunity which has come to me to speak publicly of the very important decision of- the Court of Appeals last Tuesday in the so-called State Budget case. I realize fully that the average citizen became confused during the last winter's session, 345A

Page  346 The Executive Budget Victory as to the fundamental reason for the controversy between the Legislature and myself. Therefore, it is right to set forth the fundamentals in the simplest kind of language without going into the maneuvers and detailed happenings of last February and March. First of all, let me make it clear that there was nothing of a personal nature in the controversy. The origin of the famous lawsuit was as follows: Starting with the Constitutional Convention of 1915 a large body of public opinion in this State, without regard to party, sought a reorganization of the State Government in order greatly to reduce the number of different departments -118 of them - and in order to create a responsible financial Budget System. As you know, the departments were duly organized and are now eighteen in number. This was followed by the adoption of the amendment to the Constitution, providing for the Executive Budget. The purpose of this budget was to center financial responsibility for making estimates in the Governor, to center administrative duties in the executive departments and to limit the functions of the Legislature to making appropriations and other strictly legislative duties. During the reorganization period and before the Executive Budget went into effect last January first, a purely stop-gap arrangement was made by compromise between Governor Smith and the Legislature, by which during the reorganization, certain duties of segregating appropriations after they had been made were conferred on the Governor and two of the legislative committee chairmen. It was certainly Governor Smith's thought and that of the public, as well as my own, that when the Executive Budget went into effect the control of executive or administrative functions should vest wholly in the executive or administrative departments. On February first last, I therefore proposed this to the Legislature. The Legislature insisted on coupling the two legislative chairmen with the Governor. I was very certain, after taking careful legal advice, that this was not only contrary to the intention of the people of this State but was also contrary to the 346

Page  347 Thne Executive Budget Victory general scheme of American Federal and State Governments whereby legislators have constantly been denied the privilege of exercising administrative duties. Let me make it perfectly clear that this was the crux of my refusal to abide by the desire of the Legislature. At no time did I insist that the Governor himself should have the sole power of segregation, but spoke constantly of the executive or administrative power as a whole, including of course the department heads who are responsible to the Governor. It is an interesting fact that some of the editors of our leading newspapers have been so misinformed that they have, since the Budget decision, said editorially that I had sought powers for the Governor. They fail to catch the difference between the word Executive spelled with a capital E and the same word spelled with a small e. The decision of the Court of Appeals sustains my contention in every particular. Let that be understood once and for all. That statement is not open to challenge, for the decision definitely upholds my one and only contention, viz.: that members of the Legislature can appropriate moneys but cannot carry on administrative or executive duties in the expenditure of the appropriations. This is a -constitutional question, and the decision is so farreaching that this particular case will be regarded for generations to come as one of the pivots on which the Government of this State and of other States rests. At the same time some editors have, I hope through lack of information, stated that the Court of Appeals had ruled that neither the Legislators nor the Governor could segregate appropriations in administering them. This is contrary to the clear language of the decision. The decision says that legislators are constitutionally barred from taking part in segregation. The decision further says that in regard to the particular appropriation bill of 19 29 the heads of departments and not the Governor shall do the segregating, but the decision clearly allows the Governor the right to segregate if any future Legislature grants that power. In the final analysis it makes little difference whether the Governor or the heads of departments carry out the actual signing of 347A L

Page  348 Thne Executive Budget Victory segregation papers, for all the heads of departments are appointees of the Governor and their acts are, therefore, those of the Governor. The above seems to be a clear statement of a much misunderstood case, and I want to go on record as saying that much of the misunderstanding is due to politicians and their servants who have deliberately sought to becloud and befog the big basic question. The Court of Appeals upholds in its decision the sacred time-honored American principle of the separation of the judicial, legislative and executive departments of Government. Every school child has been taught that this is the fundamental division of our governmental powers. Many attempts have been made in the past to break this clear division down. The highest court of the State of New York sustains this sacred American principle and from now on I trust that instead of constant bickerings and efforts to throw monkey-wrenches into the machinery, we shall have better cooperation and a clearer understanding of the governmental powers in Albany. I am wholly willing to go along with this idea of better understanding and it will not be my fault, if the coming session of the Legislature does not prove to be harmonious and productive of useful ' legislation and businesslike action. 348

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Page  351 77 ({An Address 'on Public Health and the Development of Saratoga Springs as a Health Center (Excerpts). June 25., 1929 tjHEN I Was a boy, not far from where we lived ~lsfftthere was an unfortunate girl, one who lived iAI eventy summers., who had been a mental defective practically from birth. She was put in VY the attic, fed and more or less secluded up there for seventy years. Her family and the community regarded it perfectly proper, because she was feebleminded, that she be segregated and kept in the attic and not even allowed to go outdoors. There she was kept all her life and lived to be a little old woman. Not so far away also there was another child, who lived to be an old, old man. He had been a cripple from birth. He, too, had been practically segregated from the community, and no one knew anything about it, except the immediate neighbors. There he was, day after day and year after year, until finally old age took him. That was not so very long ago. You and I could go on enumerating contrasts with the present age. How has this change come about, and to what is it going to lead? In the first place we have applied common sense. The State has taken care of the mentally deficient, and today in spite of the limited equipment it is carrying out a great work on the whole. A number of years ago the general thought came into the minds of modern civilization that there was a definite duty on the part of the State to do something more, so that the State of New York and almost every State in the Union, not all, have undertaken a general supervision of the health of the communities. Fifty years ago, the matter of health was individual; it was nobody's concern, except that of the family, whether a person was healthy or not, and gradually we have built up a new doctrine - the belief that the State has a positive right, not just an obligation, to see that the health of its individuals is brought up to a higher level. Is it supposed that fifty years from now the citizens of the State will be in the same condition as previously?. 351

Page  352 Saratoga Springs as a Health Center The State is going to insist, fifty years from now, on good health, insist on it as a right of what is known as the sovereignty of the people. The old idea of the right of an individual to be sick or of a community to have epidemics no longer exists. That right has been turned around and transferred to the State. I mean by "State" the general governing agencies, and they undoubtedly have the right to insist on good health. If we in this State were a little more awake in our interest in local government, the task would be easy. As you know I have been doing a great deal of talking during the past four or five months about local government. The larger percentage of the taxpayers' money is spent by the village, township, county or city, and only a very small part of what the people pay goes to the State Government in Albany, and yet, while there is some interest in local matters, there is not half enough. We are much more apt as citizens to look at the fact that the State is spending two hundred and fifty million dollars a year as a governing agency, and overlook entirely the fact that the communities, towns and counties of the State are spending ten times that amount - something like two and a half billion dollars. Most of you are interested in the local end of things, and I recognize the difficulty of your task, and also how hard it is for a Governor to go around the State and get public opinion in favor of a broad public health program. It is easier for us to go to the Legislature and get appropriations for a general, state-wide program. We get the support of the newspapers and civic organizations. In the State Government we are able to work up an active interest in the usual public health program, but what can we spend compared with the local agencies? In the final analysis, public health must depend upon the locality. Today, in county after county the average amount spent for health improvements is under 50 cents per capita, while those same counties without any hesitation spend four, five or six dollars per capita for improvements to highways. This is just one example. I do not want the highway work to stop, but the proportion is out of line, if we figure it on the population and the future 352

Page  353 Saratoga Springs as a Health Center generations. How are we going to increase that rate? By favorable opinion, of course; and that is necessary, if we are going to progress. Iam afraid that local health improvement is not of very vital interest to the supervisors of the average town, the town clerk, the assessors or the road commissioners. There are not many jobs to be given out in the administration of health work. It is not very showy. Health officials cannot get much credit out of improvement to a road that goes to pieces, or for getting some special funds from the board of supervisors of a county. You will not get the good results you think you should out of the average local politician unless you can build a backfire under him. That is your job, a very definite task, and it depends in large part upon the way that you carry out that task that the health work in the average county of the State will progress. I know something about the counties, their local conditions, and the public interest. Some of the widely scattered rural counties are doing better health work than those containing large civic communities. It comes down to the interest aroused among the people themselves, and I am very certain that the work is progressing, although not as fast as it should. We must bring home more and more to the average citizen the fact that health has become a part of Government, that it is no longer a question of charity. In going through reports, I occasionally find that this or that project will be paid for by private subscription. Why depend upon the rich residen ts to, pay the salary of a local nurse, for instance? This should be a community obligation and privilege, because the success of this work throughout the State is going to depend largely on the citizens who will be living in the State fifty years from now. Let us consider the question of health census. In spite of the efforts of the State Department of Health and some county organizations, there are still thousands of undisclosed, undiscovered, and untreated cripples in the State of New York. In the faroff Commonwealth of Australia public health goes hand in hand with census, and every year through a continuing census work, in a353

Page  354 Saratoga Springs as a Health Center connection with registration for voting as I understand it, a system by which a tabulation is made of the electorate, a report is made on the health of the electorate, and through the electorate a report is made on the health of their families. Perhaps we shall eventually have some such system in this State, through the aid of which every man, woman, and child will have a health record on file with some Government agency.... The State of New York is undertaking an experiment here at Saratoga. When I was a boy I went a number of different summers with my father to some of the German and Austrian health resorts. In those days they were called spas. Before Saratoga became famous for other things I believe it was known as a spa, as we now know the word from the crossword puzzles. The difference between the use of mineral waters, both externally and internally, in this country and on the other side, is that we Americans have treated the subject as part of our vacation. In the old days, fifty and a hundred years ago, there were a great many springs scattered throughout up-state New York, and people would go there from all over the United States for two reasons: first, to drink the waters without any medical advice and probably their mental attitude while drinking them helped physically; and second, to have a mighty good time and to meet people from this and other States. They came for a vacation period, coupled with which was the idea that they were drinking waters that might benefit them. I am sorry to say that this is the spirit in which the development of Saratoga Springs has taken place. We have not approached anywhere in this country, except in Hot Springs, Arkansas, the serious use of mineral waters for health in a manner to be compared with the use of these waters in Europe. Some years ago nobody could go to Nauheim to drink the waters and take the baths, unless sent there by a reputable physician. When the people arrived they could not drink or bathe until after complete examination by a physician of long experience, who had served an apprenticeship with an older doctor. If you were accepted by the physician and told that the Nauheim treatment would do you good, you 354W

Page  355 Saratoga Springs as a Health Center were given a card which would permit you to drink the waters, take the baths and the massages. You were there, however, for cure. Once approved by the doctor, you were given the course of treatment, and if you did not live up to the requirements, ''out you would go.'' That is different from anything in this country.. 0 In order to put the whole thing on a scientific and disciplinary basis we have appointed a commission, and I am very confident, first, that this commission will lay down a definite report that Saratoga can be developed for the good of humanity, and second, that they will submit plans for development in such a way that this particular spot in our State will point the way to all the United States. In this there are two thoughts: The conviction about the great good that Saratoga can do for many human ills of the people of the State, and the belief that it will point the way so that other States and other mineral springs can be developed along scientific and medical lines. From the Adirondacks to Georgia there are very wonderful springs on both sides of the range, and both in the West and Middle West there are springs going down through the Ozark Mountains and borders of Oklahoma and Texas, and then there are those of the Rockies extending down to Montana and Arizona, and those of the Allegheny Mountains. They are of every known size, form and heat; and I am very hopeful that, while the medical profession of the United States has lagged far behind European doctors with regard to the use of mineral waters, they will recognize the great natural gift we have at our own doors and take advantage of it. I am therefore looking forward to a very splendid development at Saratoga that will help this State and our sister States.... 355

Page  356 Report of the Special Health Commission 78 (The Governor Transmits to the Legislature a Report of the Special Health Commission. February 19, 1931 To the Legislature: THE success or failure of any Government in the final analysis must be measured by the well-being of its citizens. Nothing can be more important to a State than its public health; the State's paramount concern should be the health of its people. We in New York can justifiably boast of our accomplishments in public health. The progress which we have made in the last fifteen years is nothing short of phenomenal. For example, in 19131 the death rate in this State from all communicable diseases was 419 per I oo.,ooo population; in 1930 it was only 196; in 1900o the expected span of human life was 47 years; by 1930 it had increased to 57 years. Tuberculosis mortality has declined more than one-half since 1913; typhoid fever, once quite common, is now a rare disease. Diphtheria has declined about two-thirds since 1913; and infant mortality has, in the same period, been reduced by a half. Much that is enviable in the present status of our health work may be traced, I beli~eve,, to the legislation passed in 1913 upon recommendation of a State health commission of which the late Dr. Hermann M. Biggs was chairman. The work of that commission brought about an entire reorganization of the State Department of Health and fundamental changes in its relation to local health authorities. Since 1913 there have been piece-meal amendments to the Public Health Law as new questions arose relative to details of its administration. The rapid strides in medical science, however, and the experience we have gained in public health administration since then, convinced me last year that it was again time to make a comprehensive survey of the entire subject of public health as a governmental function - State and local. For these reasons, on May 1, 1930, I appointed an informal and unofficial commission of fourteen members under the chairmanship n356r

Page  357 Report of the Special Health Commission of President Farrand of Cornell University, charged with the duty of making such a survey. The membership of that commission is indeed a distinguished one. A mere statement of the names is sufficient to inspire the utmost confidence in and reliance upon their recommendations. Even the preliminary report which the commission has recently sent me, and which I am transmitting herewith to your Honorable Bodies, opens the way for a new health program during the coming years which, if well executed, should bring to New York State far greater advances along every line of health protection than have been achieved during the recent years of which we are justly proud. The commission makes recommendations for legislation further to improve the public health and administration of the health and sanitation laws of the State. These recommendations are intended to bring the provisions of our Public Health Law up to date and to align our entire attitude on the question of public health more closely with the outstanding achievements and accurate knowledge of modern medical science. The commission in its report points out the important pressing needs to which public health authorities should devote their attention and itemizes its major recommendations along these lines. I desire to call your attention to these recommendations with the earnest request that you proceed at once to translate them into legislation at the earliest possible moment. The expert technical knowledge, the administrative experience in public health and the sound judgment of these commission members, who have so generously given of their wisdom and skill to the public service, should be utilized by us without delay. An outstanding feature is the recommendation of the Commission that county boards of health should be organized in all counties to provide for our rural areas more effective control of tuberculosis, venereal and other communicable diseases, the protection of maternity and infancy, the safeguarding of public milk and water supplies, more effective public health nursing service and other elements of a modem health program. Originally local public health duties were imposed on the 357

Page  358 Report of the Special Health Commission cities, towns and villages of the State. As a result there are now in this State as many as 1,099 different local health jurisdictions. This system, originally created to meet the conditions of 1850, cannot possibly be adequate for the needs of 193 1. Few, if any, of these small units can afford the services which modern public health demands. The same considerations which prove how obsolete are a great many of our forms of local government likewise prove the present inadequacy of this original arrangement for public health protection. As time has passed new public health duties have become imperative and it has become clear that the small local units could not perform them. Some of them, therefore, such as the maintenance of a county tuberculosis hospital, of a public health laboratory, of a public health nursing service, and others, have been imposed upon county authorities. But it has been on a hit-or-miss plan with no one county authority clearly charged with the duty of developing a balanced and efficient health program. The result has been confusion of responsibility,, lack of coordination, waste of effort, and excessive costs for the services rendered. Practically every scientific organization interested in public health has endorsed the idea of establishing boards of health on a county basis with full time personnel. The Commission, therefore, presents as its most vital recommendation, and I urge upon you, the enactment of legislation substituting the county as the unit of local health administration in place of the town and village. It also recommends that cities be made a part of county health districts only when the city requests that it be included, and that villages of more than 5,ooo inhabitants be permitted, if they desire, to retain their local boards of health. I call your attention to the itemized list of advantages of a county health unit as compa red with the town and village units set forth on pages i16 and 17 of the accompanying preliminary report. The Commission has not been academic or theoretical in its recommendations. It points out that our statutes have imposed certain health duties upon units which were so small in population and in wealth as to preclude the possibility of efficient performance by them of these duties. It, therefore, recommends that 358

Page  359 Report of the Special Health Commission in counties having a population of less than 30o,ooo000 people the State Department of Health be empowered, on request of the county board of health, to delegate a member of its staff, without cost, to act as county health commissioner for one or more of such counties. For like reasons the Commission recommends that the program of tuberculosis hospitalization be rounded out by making hospital provision available to these counties through the establishment by the State of three district State sanatoria of moderate size, the cost of maintenance of which will be charged to the counties from which the patients come; and in admission to which the smaller counties without tuberculosis hospitals of their own would be given special consideration. This seems to be an instance in which further direct participation by the State is the only practicable plan for meeting an important need. The various other recommendations of the Commission relate to cancer, the venereal diseases, public health nursing, crippled children, maternity, infant and child hygiene, industrial hygiene, public water supplies, stream pollution and public health personnel, all set forth in detail in the accompanying report. I have given them all careful consideration and cannot refrain from congratulating the State upon the serious scientific study which has been given to the whole program by these experts and upon the opportunity which is presented for us to make these strides toward the goal of improved public health. I need not point out to you how closely bound is the prosperity of the State with its public health. It has been estimated that the average saving from the reduction in tuberculosis alone during the past twenty years, resulting now in 1,ooo fewer deaths annually, amounts to a per capita of $5 for every man, woman and child in this State each year, or an amazing total of $6o,000ooo,ooo000 per year. Nothing can, of course, have so determining an influence upon the prosperity of the State as the continuous earning power of its citizens, unimpaired by preventable diseases or uninterrupted by premature death. Nor need I point out to you the great humanitarian value of protecting our people from the vast 359

Page  360 Establishment of County Boards of Health amount of what is so often needless disease and suffering and premature and preventable death. There can be no reasonable differences of opinion as to the paramount importance of this kind of legislation. I know that you will cooperate with the members of the Commission who have so clearly pointed out the way. These public health experts have sent to me their prescription for their patient, the State of New York. You and I can, and should., join hands in filling this prescription in the form of legislation. 7 [ A Recommendation for the Establishment of County Boards of Health in All Counties. April 2, 1931 To the Legislature: ON THE 1 9th day of February, 193 1, 1 transmitted to your Honorable Bodies a copy of the report of the special unofficial commission appointed by me to investigate and report remedial measures for the improvement of the public health. I pointed out then., and reiterate now, that nothing can be more important or more worthy of consideration than this subject. Legislation has been introduced to carry out the report of this commission. I am informed that your Honorable Bodies are willing to pass this legislation with the exception of one feature - the establishment of county boards of health in all counties. The report of the Governor's special health commission, which I transmitted to your Honorable Bodies on February i 9th., points out that this is the most important item in the entire health program. The primary responsibility for health protection should be a local one. This responsibility under laws passed more than a half century ago has been imposed on the cities, towns and villages of the State, resulting in the creation of 1,036 local health units, excluding the county and city units. It has been long recognized that these over-numerous and, in many cases, unscientific 360n

Page  361 Establishment of County Boards of Health and untrained local health organizations have been inadequate; and as a result, in recent years, permissive laws have been passed which enable counties to create boards of health and conduct health services which obviously are possible only on a county basis. Unfortunately only four counties so far have availed themselves of this statute. The report points out that "The present system of town and village boards of health. d. results in a confusion of responsibility, lack of coordination, waste of effort, and excessive costs for the services rendered. The imperative need, therefore, is to seek out the most effective governmental units, and impose upon them the needed powers and full responsibilities. The county is the only available unit for this purpose..*. The commission feels that this is the most vital matter it has had to consider and urges that legislation be enacted substituting-the county as the unit of local health administration in place of the town and village." On pages 1 6 and 17 of its report the commission points out the advantages of a county health unit, as follows: i. The unit of population is sufficiently large to permit the employment of trained personnel.,2. One responsible board will be substituted for the many town and village boards of health, the county nursing committee, county milk inspection committee, county clinic committees, and boards of managers of county laboratories. 3. A plan of continuing health service can be developed for the whole county and all of the health personnel can be mobilized to meet emergency conditions in any part of the county. 4. Duplication and overlapping ofI effort which now exist will be prevented, and better health protection can be furnished for present expenditures. 5. The relative needs for various types of health service in the county can be determined and available public funds allotted in proportion to these needs. 6. School nursing activities now lacking in many rural schools

Page  362 Establishment of County Boards of Health can be furnished by nurses employed by the county board of health. 7. If school medical inspection is made a function of county boards of health, this important activity, can be conducted more effectively on a county-wide basis with trained personnel than under the present system. 8. Through the permissive provision under which tuberculosis control activities may be administered by the county board of health, this activity can be directly coordinated with other health services. This is particularly desirable in the smaller counties. 9. -Under the permission granted to cities to join the rest of the county for purposes of health administration, further coordination of health work on a county-wide basis is made possible. Such a union is desirable for cities of less than.50,000 population. 10. New and much-needed health activities can be undertaken which are not now carried out and are not possible under the present system. i i. Vitally important maternity and infant hygiene measures can be organized and efficiently conducted. 12. Treatment facilities for the control of the venereal diseases can be provided. 13. The sanitary quality of milk can be assured through a county-wide inspection service. 14. The sanitary quality of water supplies can be supervised through a county sanitary engineer. 15. Modern epidemiological methods can be applied for control of the communicable diseases in place of the present ineffective system. Toxin-antitoxin, smallpox vaccination and other activities can be conducted by personnel provided for these and other services., 16. Less intimate State supervision and fewer direct services from the Health Department will be required because of the better local organization. 362

Page  363 Report of the Special Health Commission The legislation introduced carries out the recommendations of the commission along these lines and provides that in counties having a population of less than 30,000, the State Department of Health may, on request of the county board of health, delegate a member of its own staff, without cost, to act as county health commissioner for one'or more of such counties. It also permits cities and villages of more than 5,000 inhabitants to retain their own local board of health. Under the present provisions of the Public Health Law, the State will share the cost of this local county health program with the county equally. This bill is mandatory in its direction that counties form these health units; but it is merely the substitution of one mandatory unit for many other smaller mandatory units. No county purpose and no State purpose is more important than this. The people of each county are entitled to the best in the way of health protection that the county and the State together can afford. Selfish local patronage should not be permitted to stand in the way. The opposition of local office holders whose little jobs may be jeopardized should not prevail. I sincerely urge upon your Honorable Bodies the enactment of this legislation at this session. 8o ({ Comment by the Governor on a Report of the Special Health Commission. April 6, 1932 THE report is both an, inspiration and an indictment. Other than the indifference of local governments, there is no reason for tuberculosis to be twice as prevalent in some communities as in others; for deaths and illnesses from diphtheria to continue to occur when some municipalities have been able to stamp it out entirely; for twice as many babies to die each year in some counties and cities as in the communities where a modern health program is in force; for certain death rates to be higher in rural communities, with no organized health services, than in urban communities where health service is available; and for those citizens

Page  364 Report of the Special Health Commission of lower economic rank to suffer a higher death rate from practically all causes. It is apparent from the exhaustive studies made by the Health Commission over a period of nearly two years that our present town and village system of local health administration is as wasteful of lives as of money. The significance of this report does not lie in its recommendations for needed legislation- important as they are- but in its specific plans for community action covering every phase of public health. It is a report made not only to the Governor, but to the people of the State, and is available for those interested in any aspect of public health. The recommendations of the Commission constitute a broadly conceived, long-range plan for health work in the State which is practical and easy to follow. If well executed it should go far to eliminate our present wastes, inefficiencies and duplications of health effort. It should lighten our heavy economic burden in caring for the unfit and save many lives now needlessly lost. On April 22 I am calling a conference in Albany with health leaders of the State at which the next steps necessary for carrying out the new health program will be arranged. The expert technical knowledge, the administrative experience in public health and the sound judgment of the members of the Commission, which have found expression in this report, will, I hope, be translated promptly into law and transmitted by practice into the lives of the people. What I want to make clear to the people of this State is that here is a report which gives us a definite better-health program to work on for a good many years to come. Its effectiveness will be measured by the interest that people take in it in every community. That is why I hope that it will be read and discussed in every county and town in the whole State. 364

Page  365 xv Prisons, Prison Labor, Parole, Probation, and Crime IN ADDITION to the documents in this chapter, the reader is referred for further material on the same subjects to the following Items in this volume:I 11, 17 on page i oi, 18 on page 120, 89.

Page  366

Page  367 8 [Address before the Conference of Gover nors., New London, Conn. July 16, 1929 (suppression of crime - Enforcement of justice - Reform of criminal procedure.) N O CONSTITUTIONAL sovereign right vested in the forty-eight States which make up our great Nation has been more zealously defended or clearly established than the right of each State to control the police powers and the administration of justice within its borders. What constitutes a crime is a matter which each State determines for itself. What machinery of justice shall be employed to enforce its laws is also a matter for State determination. Only those matters which are violations of such Congressional laws as are based on specific grants of authority by the Constitution to the Federal Government are recognized, not as usurping the State's individual authority, but as necessary measures which the agreement of federation between the different States requires us to acquiesce in, if we are to keep faith one with another. Our Nation has been a successful experiment in democratic Government, because the individual States have waived in only a few instances their sovereign rights and have permitted the national Government, through its own machinery and its own courts, to enforce within their borders certain particular laws which the States themselves, as represented in Congress assembled, have agreed upon as being proper national legislation. But there is a tendency, and to my mind a dangerous tendency, on the part of our national Government, to encroach, on one excuse or another, more and more upon State supremacy. The elastic theory of interstate commerce., for instance, has been stretched almost to the breaking point to cover certain regulatory powers desired by Washington. But in many cases this has been due to a failure of the States, themselves, by common agreement, to pass legislation necessary to meet certain conditions. We are now faced with new and alarming problems in criminal activity. I am very certain that the public is aroused to the neces367

Page  368 Address, Newv London, Conn. sity of suppressing the outrageous and open lawlessness shown by the murders committed daily in the public streets of our great cities, of private feuds between gunmen which flourish with less punishment than in the darkest days of Sicily. At this constantly growing disregard of the life* and safety of others and crimes against property, the public has grown alarmed and demands action. And let me here voice to the Governors of my sister States my conviction that if our States do not themselves, by cooperation and earnest, intelligent legislation, remedy the existing condition of affairs, we shall find the heavy hand of Washington laid on us by Federal legislation, and the people of our own commonwealths will raise no voice in protest, because their own State Governments have been inefficient, stupid or negligent. If we wish to retain our control over the criminal laws and police powers, we must accept the responsibility for their enforcement; we must clean out the antiquated machinery of justice; we.must meet new kinds of crime with new kinds of laws; and we must do this, not in this State or that State, but in every State, if anything is to be really done about this crime problem. We who have assembled for this conference have no small moral share in this responsibility. It is the Governor of each State who has the duty, and the right as well, of calling to the attention of his State Legislature the need for legislative action, not merely by a few perfunctory words in an annual message dealing with many subjects, but persistently, forcibly, and repeatedly, whenever the Legislature fails to take action. There is no doubt that the citizens of every State will support their Governor in a demand for proper measures to reduce crime, and, while the Governor's personal appeal does not always fall upon sympathetic ears, when it is backed by public opinion, irrespective of political beliefs, it will in the end be heeded by the most recalcitrant or slow-moving legislative bodies. I have spoken of the obligatio 'n that falls on us, as Governors, to urge upon our State Legislatures the need of passing proper and helpful legislation. It may be well asked how may the propriety or hepnfulness onf legrislation of this character be ascertained? And

Page  369 Address, New London, Conn. here we come at the start to the first great stumbling block in the fight against crime. Three years ago, when the National Crime Commission, of whose executive committee I happen to be a member, first undertook the investigation as to what practical and immediate steps could be taken to reduce crime, they discovered that, while it is possible to determine with reasonable accuracy how many cases of mumps there had been in the United States during the previous year, no one could tell in even the most inaccurate way how many murders there had been in this same period. We talk about a crime wave. Let me assure you gentlemen, on the word of the National Crime Commission, which has been studying this matter for three years, that no one can today state with any authoritative statistics to back him, whether there is or is not a crime wave in the United States. A certain new and reckless disregard of human life is apparent in some of our large cities, and the records of the courts and State prisons show that a new and most alarming change has taken place in the characters of our criminals, and that the old and hardened "yegg man" has practically disappeared from our police courts and has been replaced by mere lads whose ages range between 16 and 24, who rob and murder with almost a certainty of escape from detection, youngsters who, if detected, are able to defeat justice through clever lawyers with a certainty of safety that is bringing into their ranks new recruits every hour of the day, tempted by the glittering prospect of easy money without real risk. But as to whether or not there is a total increase in the number of crimes committed we have no knowledge whatever. We have no knowledge, in fact, on any subject based on statistics as to criminal acts. Guesses we have from a few cities out of our total population of a hundred odd million people, painstaking research in particular subjects by a few efficient State crime commissions, but of the condition of our country as a whole we may not speak with any certainty, because there are no statistics collected or available. This was the startling discovery our own commission made three years ago. You will find it emphasized in a letter which I 369

Page  370 Address, New London, Conn. shall read from the chairman of President Hoover's new Federal commission which is just beginning its labors. Until we get more certain knowledge of the amount and character of crime, all our efforts will be mere experiments undertaken in hope, rather than in any confidence based on knowledge. I want to urge on every Governor present that he take up, as one of the most important matters for the consideration of legislators, the compilation and publication, as a matter of law, of the few vitally necessary criminal statistics to enable us to attack this problem of crime in a businesslike and scientific way. There are States, and their number I am glad to say is growing, which have already recognized this necessity, my own State being among them, but they are in a pitiful minority as compared with the States where there is no attempt at the collection of statistics of this kind. Let us stop guessing about crime and require a few facts. Do not think that this is a matter which can be turned over to the Government at Washington. Do not think it can be lightly dismissed by saying that it is "something for the census bureau to do." The evasion of State sovereignty has not yet reached the point, thank God, when the Federal Government can issue orders to State officials as to what they shall and shall not do in keeping records, or anything else, and it would be a disgrace on every State that had failed to take this matter up if public opinion should necessitate such meddling with our State machinery as the compiling of crime statistics by orders from Washington would bring about. And unless the Federal Government assumes mandatory authority over our officials, these statistics cannot be collected by Washington. That has been proved by the praiseworthy attempt of the census bureau to collect and publish statistics obtained from our State prisons. They are probably the best national statistics relating to crime in existence, but the director of the census will tell you, as he told our commission, that too often the wardens of our great penitentiaries have replied to his request for information so negligently as to make the figures matters of deep suspicion or, indeed, in some instances, in spite of repeated correspondence, have made no reply at all. 37~

Page  371 Address, Newv London, Conn. Of all the statistics needed, perhaps the most urgent and the simplest to procure is the record of the numbers and kinds of crimes of violence that have been actually committed, not punished, but committed. Our la rge cities furnish more or less accurate statistics of arrests and of trials, of convictions, and of imprisonments, but of the crimes committed, where no one is arrested, where no grand jury brings in an indictment, where no court has a record of any kind (we are speaking of the country as a whole), we are profoundly ignorant. I have spoken at length on this matter of statistics, because as a whole statistics are a dry subject, and it is difficult to interest the public in the necessity of their collection, but I wish to assure this conference that no intelligent body of citizens in these United States, from the President's commission down, has attempted to study and understand this matter of crime and of this new entrance of the young criminal into, the problem, but has found itself baffled and disheartened by the lack of obtainable information. Now as to remedies themselves. There are many causes of crime. Each section of the country, each State within that section, and each city within that State, have peculiar conditions and problems in this connection. Should we, evading our responsibility, cowardly ask the national Government to pass laws which should be enforced throughout the entire country, to provide a system of justice and a criminal code for the entire United States? If the national Government should accept that responsibility, it would find it impossible to draft any national laws which would be equally effective in Maine- and California, in Texas and Ohio. Each State must study its own crime conditions, must gather its own statistics and work out its own salvation. By that I do not mean that there should not be the closest possible uniformity in our crime legislation and our criminal codes. All legislation, for instance, against the gun toter has been seriously impaired, because it is not uniform in every State. There are certain fundamental principles, certain uniform treatment of certain crimes, which are absolutely necessary, if we do not want to see our crim

Page  372 Address, Newv London, Conn. inals traveling from one State to another in order to take advantage of varying statutes. I wish this conference would establish a permanent committee on coordination in the enforcing of justice and the reform of criminal procedure which would consider the various suggestions made by our State and national crime commissions, by our various bodies devoted to penal reform and by the bar associations throughout the country, and that such a committee of Governors would recommend for the consideration of all the Governors such proposed legislation as it deem worthy, with the request that it be laid before the Legislatures of the different States. And I wish even more devoutly that it would prove practical to effect some kind of coordination between the chairmen of the respective State legislative committees to whom such legislation would be referred, so that they might know what other States were doing and might agree among themselves as to what was to be reported out, with their favorable recommendation, at the next session of their legislative bodies. The National Crime Commission has found a spirit of conservatism, speaking in general terms, among many of the bar associations, which should be the first to act. This spirit has been noticed to an even greater extent in the average legislative body. I think I am not exaggerating when I say that, if all the recommendations of properly qualified bodies for legislation simplifying and expediting justice, had been passed by the Legislatures of the different States assembled in session last year, we would have made a tremendous stride toward reducing crime in this country. It is our duty as Governors, as I have already said, continually to remind our Legislatures of the seriousness of this problem and., if necessary, to ask the people of our commonwealths to support us in our demand for action. Speaking for my own State, we have found the establishment of a State Crime Commission an invaluable help in meeting this question, and I think the same experience has followed the establishment of such commissions in California and other States. The creation of a proper bureau of identification, such as has been

Page  373 Address, Newv London, Conn. done in Indiana, is another wise step. I have recommended in my own State an investigation as to the possibility of bringing our police methods on a par with those in England, France and Germany, by applying modern science to police protection. In such States as still retain the county jail I hope the system of Statesupervised penal institutions will be substituted in the interests of permanent reform of our criminal classes. One of the helpful recommendations of the crime commission in my own State, which has been enacted into law this year, was the establishment in one of our great penitentiaries of a psychiatric clinic to study our prisoners by modern methods, to find out why they became criminals and what course would seem best adapted to bring about their reform. I do not wish to take up, in opening this discussion, particular things or particular remedies. My own commission has made a number of suggestions, the State commissions of many States have added and improved upon them, and many of those present have doubtless carefully thought out valuable suggestions of their own, but I want again to urge some kind of closer cooperation between the States and the necessity of ceaseless presentation of the matter to our State Legislatures, as being two fundamental things that rest on us as Governors to carry on. When I started to prepare this opening address I asked the chairman of the President's commission if he had any requests to make of the Governors here assembled for their aid in the tremendous task which they have undertaken. He wrote me in reply a letter so clearly setting out their views that I am going to read it without comment or amplification of any kind of my own in closing. This is what Mr. Wickersham has written. Letter of George W. Wickersham Dear Governor Roosevelt: President Hoover in his inaugural address emphasized the need of an urgent respect for law and the improved treatment of crime and criminals. In his address to the commission on its organization, he said: "A Nation does not fail from its growth and wealth 373e

Page  374 Address, Newv London, Conn. or power, but no Nation can for long survive failure of its citizens to respect and obey the laws which they, themselves, make, nor can it survive decadence of the moral and spiritual contracts that are the basis of respect for law, nor from neglect to organize itself. To defeat crime and the corruption that flows from it, he expressed the hope that his commission shall secure an accurate determination of effect and cause, following them with constructive, courageous, conclusions which will bring public understanding and command public support of its conclusions. In a previous statement to the press the President stated that the purpose of the commission was to examine and critically consider the entire Federal machinery of justice, a reconstruction of its function, simplification of its procedure, the provision of additional special tribunals, and better selection of juries, the moral, effective organization of our agency of investigation and prosecutions. It will also naturally include consideration of the enforcement of the Eighteenth Amendment.. From these statements you will understand what a broad scope we have and what a heavy duty is laid upon us. Every intelligent person must be aware that the general attitude of the American people toward the law has fallen far short of what it should be. It is not only shown in the open disrespect for the Volstead Law, but in the general attitude of "beating the law," so long as one can get by with it. The first thing our commission did was to endeavor to secure actual, reliable statistics of the existing amount of crime, the increase or decrease of crime during the past decade, the actual delays of the enforcement of justice, and the amount of congestion of the criminal courts. There are no reliable statistics furnishing this information. The New York Crime Commission, whose admirable reports have been most helpful to us, came upon the same lack, and upon their recommendations the Legislature last year passed an Act to supply this want so far as our State is concerned. I think if the Governors' Conference would recommend like action by all the States it would be helpful.

Page  375 A ddress., Newv London-, Conn. Our Commission is studying the subject, and will, I think, recommend a uniform State law on the subject, with a voluntary administration act in the meantime. Another subject we are inquiring into is the cost of extra-legal protection against crime by the police, armored cars, burglary, robbery, and theft insurance, etc., and a survey of conditions in Boston, nearly completed, indicated that crime in that city actually has diminished during the past decade. The fact that that city has a larger police force in proportion to its population than any other city may have much to do with the favorable condition mentioned, but the challenging fact is in the great number of criminal prosecutions which never come to trial, the number of cases settled by pleas of guilty to a lesser offense than that charged, the great delay in bringing cases to trial, the greater delays in hearing appeals and the abuse of excessive bail on appeal. justice to be effective should be speedy. It is freely charged that much of the delay is the result' of political influence with the police, the prosecutors and even the courts. These are difficult matters to investigate. But if every arrest had to be immediately reported from a central registration office and every step thereafter taken concerning the defendant recorded in the same way, it would be much more difficult for an improper influence to thwart the due administration of justice. Of course, one of the most serious subjects we must deal with is the enforcement of the Eighteenth Amendment. That measure has written into the Constitution of the United States a prohibition of the importation, manufacture, transportation and sale of intoxicating liquors for beverage purposes. The Amendment confers upon the States concurrent jurisdiction with the national Government for the enforcement of this measure. Thus far the Federal Government alone has borne the brunt of enforcement. It seems to me that the Governors' Conference might well consider approaching the Federal Government on some feasible proposal to share this burden. If'the national Government were to attend to preventing importation, manufacture and shipment in interstate commerce of intoxicants, the State undertaking the in375- _

Page  376 On Prison and Parole Problems ternal police regulations to prevent sale, saloons, speakeasies, and so forth, national and State laws might be modified so as to become reasonably enforcible and one great source of demoralizing and pecuniarily profitable crime removed. Every State executive has sworn to support and defend the Constitution of the United States. The Eighteenth Amendment is a part of the Constitution, just as much as any other part of it. Surely, it is pertinent to their Conference to suggest and consider how they may best carry out their solemn undertaking. My dear Governor, I beg you to excuse this long letter in my own hand. I have no stenographer with me, but I feel that your letter calls for the most helpful reply I can give, and I hope that what I have written may suggest to you something of value in the preparation of your address. Faithfully yours, G. W. WICKERSHAM 82 (Address on Prison and Parole Problems. New York City. January 18, 1930 HELL appears to have been the ideal design for a prison in the minds of our forefathers. The narrow cubicles of sweating stone, the little shaft of light that crept between the heavy iron bars, the lack of ventilation, sanitation, of everything which makes life endurable, all to be suffered in sullen silence under the watchful eyes of brutal guards - surely no better form of eternal punishment could be devised to torture lost souls in the hereafter. In spite of all our remodeling, of all our tinkering and patchwork improving, we have still, in what we boastfully call this "enlightened age," prisons whose physical characteristics have lost little of their ancient horrors so far as their construction goes. Now we are beginning to realize the perfectly obvious fact, to which we have deliberately shut our eyes for so many years, that the men we send to prison with few exceptions will be returned again to live among us, to be, perhaps, our neighbors, to 376

Page  377 On Prison and Parole Problems live as we live, and to have the same rights as we have. We at last understand that not philanthropy but mere common sense, and our own self-protection require that these men should be released, chastened and reformed if possible, but at least not rendered more vicious, more degraded, than when they were sentenced. But while, for some years, we have acknowledged grudgingly the truth of this matter and have made spasmodic and sporadic efforts to better conditions, and while, in so far as treatment and personnel are concerned, we have revolutionized entirely prison government and prison discipline, it has required the recent spectacular uprising of small groups of desperate men to make us finally demand that new prisons, better prisons, and prisons that shall not be places of cruel and unusual punishment must be erected immediately, no matter what they cost. Our old prisons, such as Auburn, which is the conspicuous example of what a prison should not be, were bad enough when filled only to their normal capacity, but when we attempt, as we are doing at present, to crowd 6500 men into accommodations none too ample for 4500, we obviously are giving the lie to all our vaunted progress in social welfare. The truth of the matter is that the extraordinary and seemingly callous indifference which has created this condition has resulted from the fact that very few people have thought seriously about the "dprison question" at all. Our whole treatment of the criminal has been based not upon any logical theory of crime and punishment, but upon waves of transitory interest created by the events of the day. Having no definite ideas upon the subject, we have swayed first one way and then the other as the result of some outstanding event. First the misery, the discomforts, the inhumanities, the grim hopelessness of prison life will be brought to our attention by some impassioned leader in reform and a wave of sympathy for the convicted will sweep over us. We then demand all manner of hastily considered changes in our whole prison system, based entirely upon our sympathy of the moment for the convicted felon. Immediately, before even this wave of sympathy has

Page  378 On Prison and Parole Problems had a chance permanently to affect our treatment of the criminal., some series of cold-blooded and inhuman crimes, or., as during the past year, the spectacle of a handful of hardened and hopeless men rising in rebellion against authority, arouses a demand for retaliation and vengeance and we lengthen sentences, increase convictions, and demand stern, unyielding and unsympathetic discipline. This is just as fatal to all real enlightened progress in solving this great problem as that worthy but misdirected sympathy which leads us to consider only the physical comfort of the prisoners, without regard to what is needed to effect a real reformation. But I think at last we have realized that the time has come to give this matter the same thoughtful study, the same intelligence, the same definite and sustained effort along a carefully planned path toward a clearly understood goal that we have applied to other social problems. We must, in fact, go about this business of prison reform in the same way that we have reformed completely our business methods. I have pointed out in a special message to the Legislature the five main problems and what we must do by legislation to meet them: First is the need for new and proper buildings. I have spoken already of the 2000 men sleeping in all kinds of temporary makeshift instead of proper accommodations, and this surplus population is increasing largely because, under our present system of penal treatment, a very great percentage of those whom we release come back again for some new crime. I have outlined a program of building -and building proper prisons is something which may not be done in a few short months - which will give us in i1935 reasonably modern accommodations for 9,006 prisoners.I hope, by other improvements in our whole scheme of treatment of convicted men, by that time we shall have so reduced the number of those who return as to make these accommodations sufficient, with only moderate increases, for years to come. Unless., however, we appropriate the money needed this year and the succeeding four years as well, until the five-year construction pro378 -

Page  379 On Prison and Parole Problems gram is completed, we shall not be able to reach the goal that we have set. It is not something that may be postponed, if we would end the present intolerable and shameful conditions. The next thing which is necessary is to work out a plan for the segregation and classification of prisoners. It is obvious that when we place a foolish lad, led into his first crime, in the company of old and hardened offenders, we are making ourselves morally responsible, if he comes out from his comparatively short sentence as hardened and as irredeemable as his associates. It is not pleasant to think of the moral guilt that lies upon us all for this terrible and just accusation, not of making men's bodies uncomfortable, but of destroying their souls. Now, if we are going to put an end to this - and put an end to it we must - we must know clearly what we intend to do so that we can design our new construction accordingly, for the type of building, the kind of discipline, and even the size and capacity of a prison depend entirely upon the exact use to which we intend to put it. But granting that these two important things have been worked out, granting that we have proper accommodations and proper classification and segregation, granting that our prisoners have been decently housed and separated so as to avoid making professional criminals out of amateurs, what are we going to give them to do? An idle prisoner becomes a bitter prisoner in an amazingly short time. Work is the only sure preventive of brooding, and this work must be something more than mere routine exercise. It must be interesting, it must be real work that actually achieves something, for it is the feeling of achievement that gives work its power to bring about forgetfulness of the unpleasant. In no particular have we been more backward than in solving what we know as the "prison labor" problem. It is complex and involves the working out of a plan which shall be acceptable to manufacturers, to our free labor, and to those who are experts as to what will most assist the prisoner to become a useful citizen. If our State Crime Commission in its forthcoming report is not prepared to lay out a definite plan for proper labor for all prisoners, 379

Page  380 On Prison and Parole Problems it is my intention immediately to appoint a special commission. This commission will consist of representatives of our manufacturers., our labor organizations and our expert penologists. They are to sit around a table and work out a scheme of prison labor which will be recommended by all three groups. It is also my hope., in consideration of the constantly increasing number of youthful prisoners - boys who have been led into crime from sheer idleness or lack of knowledge of how to earn a living more usefully - that a real trade school education, in as many varied lines as we can find adaptable for this purpose, be given them. I do not know of any one thing which will make these youths useful citizens when they pass out of the prison gates so much4 as an education in a good trade, under competent supervisors in the use of modern tools and machinery which will make them really skilled workmen and tremendously shorten that most critical period when they must immediately earn a living or return to criminal ways. The next important thing which we m 'ust do, one which is of peculiar importance in view of the necessarily overcrowded conditions which will continue until our building program is completed, is vastly to improve our whole system of parole. We cannot extend the theory of parole under our present plan. It is illogical and wrong to have the work of the Parole Commission undertaken, as at present, by a Board consisting of the wardens of the different prisons and the Commissioner of Correction. It is a man's job in itself, to say nothing of the impropriety of giving the parole power virtually to those in charge of the daily life of the prisoners. We have laid far too many other important duties on these men to expect them to be able to give full attention to working out a scientific extension of the parole theory. I look to the creation of a real Parole Commission consisting of well-paid experts who have, in addition, a real interest in the work. I am asking for the placing of far more authority in such a Commission than the Parole Board now enjoys. just what changes in our laws are needed for this and just what the functions and duties of this Commission should be are matters to be 38

Page  381 On Prison and Parole Problems determined by those 'Who have made a lifelong study of the problem. I shall announce on Monday the appointment of a voluntary committee of six persons, known not only in our State but throughout the country as being peculiarly qualified to speak with authority in this matter, and I have been promised their immediate attention to this question as a public service, to the end that within the next two weeks I may frame a definite working plan based on their years of study which I can submit to the Legislature. It is my hope to create a body so responsible and so competent as to make it possible to use them as an advisory board in the matter of the hundreds of applications for pardon and commutations of sentence which now lie so heavily on every Governor's shoulders. It is impossible for the Governor to know or for the Governor to investigate all of the many circumstances of which he should be informed in determining these questions of pardon and commutation. It is not legal authority that is needed in this case, but efficient machinery to conduct the preliminary research needed to assure a right determination. We are at present convicting our criminals under what have come to be known as the "Baumes Laws" which mathematically increase the length of sentence for each new offense until the fourth conviction carries with it a sentence for life. I do not at this time recommend specific changes in these laws. Their effects, their merits, and their faults require expert study from actual observation of conditions since their adoption. But it is my hope, if I can secure the establishment of this real Parole Commission, that after practical experience during the next recess of the Legislature they will be in a position to make recommendations in this matter both to the State Crime Commission and to our Legislature based on actual conditions rather than upon a theory of what would be improvement. I have tried to explain as briefly as I can our present prison problem and what we propose to do about it. This is certainly one thing in which politics never should be allowed to enter, and on which all parties should reach a common agreement for the 381

Page  382 Study of Prison Labor common good. I feel confident that although my political party is not the party to which the members of this club belong; I shall receive in this great effort to improve our prisons and our present methods the hearty support of every member. 8 3 ({Statement on the Appointment of a Committee to Study Prison Labor. March 12, 1930 A NY efficient and effective program for the development of the State's penal institutions along the best modern lines of thought and practice must consist of far more than a mere financial schedule, or a catalogue of structures to be erected or improved in the future. Owing to our failure for many, many years in the past to keep abreast of the times, and to provide each year the comparatively moderate expenditure so to do, we are faced with the necessity of completely remodeling not only our structures but our system in regard to prisons and prisoners. The first step is, of course, the securing of assurance of sufficient funds to erect certain definite new buildings to meet the growing needs of the State. It is my understanding that the Legislature is in accord with me in this matter and that we may be reasonably assured that this part of the program can be carried through. Having decided, however, on a prison in the abstract, the next question is: What class of prisoners shall be sent there? It is, I think., universally recognized that the old practice of committing the hardened and practically hopeless offenders to the same institutions as the youth who has committed his first crime results too often in making a professional criminal of the youth upon his release. The character of these prisons, their very integral structure depend, of course, upon the class of prisoners they are designed to accommodate. Thus a five-year program for the gradual proper segregation and distribution of prisoners, to go hand in hand with the new buildings or improvements in old buildings as they are physically completed, is equally essential. There remains, however, another question which is even more 38R2

Page  383 Study of Prison Labor important and more difficult to answer. Having segregated our prisoners as far as practicable, how are we to keep them occupied during the term of their incarceration? An idle prisoner becomes a brooder and only too often eventually a plotter; yet for various very practical reasons we are more backward in this matter of proper prison labor than in any other part of the work ahead. It is perfectly true that we have had shops of a sort in our prisons, but the finding of employment for every prisoner which will not only keep his mind healthily occupied, but will send him out of the prison better equipped to earn an honest living than he was when he entered, still stares us in the face. Various solutions have been suggested, but there are three elements which must be considered and reconciled before the prison labor problem is really solved. None of the plans so far has satisfied all of the requirements. It would be easy to establish industries in our prisons in which every prisoner might be employed, and even to make them profitable to the State, but this can only be done at the expense of those who labor outside the prison walls and, because they have been good citizens, certainly deserve the State's protection from unfair competition from those who have proved themselves bad citizens in relation to law observance. Not only must the right of labor to be protected be considered, but in addition those who manufacture goods which could be easily and more cheaply manufactured in our penal institutions also deserve protection from the competition of goods manufactured within prison walls. The necessity of providing work which shall be also educational demands industries of some kind in all our prisons for every prisoner. Justice to the manufacturers and the workmen of the State demands that these manufacturies do not conflict with similar goods manufactured outside. A possible solution may lie in the establishment of trade schools rather than in factories to turn out finished articles; or it may be necessary to reach a compromise between the three conflicting interests by which mutual concessions are made in the interest of the rehabilitation of the offender which will not fall too heavily on any one group. 383

Page  384 Progress in the Suppression of Crime In my judgment, the right answer can only be found by a meeting of those understanding the needs of the prisoner, of those representing the State's workers, and of those representing the manufacturing interests of our Commonwealth. I have accordingly determined to appoint a committee consisting of two outstanding experts in prison problems, two representatives of labor, and two representatives of our manufacturing interests to sit around a table together and work this thing out. It cannot be done with the speed with which the admirable report on probation was accomplished. This is a matter of breaking new ground rather than expertly summarizing definite conclusions which have been reached by penal experts after years of study. I intend to ask this committee, whose names will be announced in a few days, to work through the coming summer in the expectation that they may have a definite recommendation for next year's Legislature..00 84 ( The Governor Reports to the Governors' Conference on Progress in the Suppression of Crime. June 30, 1930 AT THE last session of the Governors' Conference, I was requested to act as an informal committee of one for the purpose of making a report at the next session in regard to progress made by the different State Governments in the war against crime, and particularly as to the necessity of securing by definite legislation fuller and more accurate statistics regarding the character and amount of crime, in order that the whole subject could be considered with more intelligence and with a far better knowledge of actual conditions than are now possessed. You will hear a special report on the advisability of creating a permanent secretariat for the Conference, which would act as a clearing house of information and generally assist in the coordinating of the activities in our different States along many lines. ^384

Page  385 Progress in the Suppression of Crime, The necessity for a universal and central system of reporting of crimes committed, whether in the rural districts or in the great cities, and the publication of statistics in regard thereto, are' so obvious as to need no further comment from me. In revising its entire Criminal Code, the State of Louisiana adopted an excellent provision in this respect which requires all sheriffs and peace officers to report not only the crimes on which arrests are made but all crimes which have been committed in their territory. By making every peace officer., as part of his regular duties, responsible for the report of crimes committed, whether the perpetrator thereof is known or not, and by requiring the proper department of the State machinery to collect, classify and publish at frequent intervals such reports, it will be possible to get a very clear idea of the actual amount of crime in this country without adding any expense for an elaborate statistical bureau. In case a permanent secretariat is created in accordance with the suggestion made to the Executive Committee, it seems to me to be obvious that a most important function for it to assume would be the duty of preparing a model statute requiring only the most simple statistics, and the forwarding of them to the Governors of the several States in the hope that it will be submitted with a favorable recommendation to the Legislatures. I have collected considerable material on the subject which I shall turn over to any committee or permanent secretariat which may be created as a result of the action of this session. Should it be decided that such action is not wise, I ask the National Crime Commission, of which I am a member of the Executive Committee, to draw up such a statute and to send it to the Governors during the next few months. It cannot be said that much progress has been made during the year in attacking crime through legislation. This is largely due to the fact that only nine State Legislatures were in session. Next year the Legislature of practically every State will meet and I hope we shall see a coordinated and real effort made to take legislative action. I would like to call the attention of all of the Governors to the 385

Page  386 Progress in the Suppression of Crime final report made by the Association sponsored by the American Bar Association which has been working for so many years on the Criminal Code. Many suggestions for the improvement of our criminal codes are embodied in that report. These are worth the serious consideration of every Governor. A previous report covering the same subject, prepared by the late Governor Hadley and made by the National Crime Commission, also contains much valuable material and I shall be glad to forward a copy thereof to any Governor who would like to study it., There has been an increasing tendency to meet the problem of our overcrowded prisons by seeking to eliminate causes of crime and to reduce the number of prisoners in every way possible. It is generally recognized that unless a prisoner is sentenced for life, he will eventually return to "the community, and if our whole theory of prisons and penal treatment is not based so far as possible on the reform of the prisoner while he is in the custody of the State, we shall continue to take in new prisoners at one gate and release hardened criminals through another, and our total criminal population will increase by leaps and bounds in consequence. There is, of course, a class of offenders from whom society must be protected, men who will always be criminals and who are beyond any efforts at reclamation, but there are many, many cases where a more intelligent treatment of our prisoners will save the State many millions of dollars in providing for their reincarceration at a later date. There are also many cases of first offenders who undoubtedly can be made useful citizens by placing them on probation and suspended sentence, without herding them with notorious and hardened criminals no matter how short their terms. There are other cases where a penal sentence is necessary to inflict a sufficiently severe lesson but where scientific observation by trained men will reveal a real willingness to reform and to stay reformed which would make it advisable and wise to release the prisoners on parole at a comparatively early date. These two great matters, parole and probation, are now receiv386 r

Page  387 Probation and Parole ing consideration in almost every State. I am glad to say that in our own State I think we have made a most noteworthy progress in matters of parole. We have established, on the advice of men who have made the subject a study all their lives, a Parole Commission of three men drawing twelve thousand dollars a year each, who under the law are not allowed to engage in any other business and who have the complete control of the probation system in their hands. This has been made an independent department free from all connection with the heads of the prisons or the Department of Correction. Under this new Parole body a special staff of trained and competent parole officers is created and it is hoped that we can now make a practical demonstration to our sister States of the advantages of competent officials working with complete freedom along modern lines. I hope next year we shall take the next step and consider seriously the matter of probation which at present is rather left to chance or the individual idiosyncrasies of the different judges. The tendency of criminals to organize in what might be described as the interstate traffic in crime has increased tremendously during the past two or three years. I feel that we must meet it by a combined effort, working in close cooperation with the Governors and the Legislatures of all the States in order that we may have such uniformity in our criminal procedure and punishments as will leave no place of refuge for the organized gangster in this country. 8 5 [ Address on Probation and Parole before the National Probation Association. New York City. March 17, 1931 TO NO other institutions of learning in the world do so many postgraduates return for advanced instruction as to those "Colleges of crime"9 which a still unenlightened civilization has erected for a quite different purpose - our penal institutions, State and "387J.

Page  388 Probation and Parole national. Prison statistics show that from 50 percent to 6o percent of those once sent to jail become habitual offenders and eventually return to jail again. When we consider that this 50 percent represents only those persons who have been caught in the act and have been -successfully prosecuted, and that we must add those who have escaped detection or have slipped through the many loopholes in our creaking and antiquated machinery of justice and prosecution, we are forced to admit that, as a protection to society, the whole prison system has been miserably inadequate and ineffective. We are only beginning to realize that the overwhelming majority of our convicted criminals return to society in a short time and become again our neighbors and active members of our community. We have assumed that the horrors of prison life and the stigma which society brands upon every prisoner, were forcing him through sheer terror into the path of virtue on his release. That is not true. We must always have prisons. There are always those who are criminal by instinct, who must be kept from society and from injuring others because their minds are incapable of reformation, their wills too weak to keep them from lives of crime. These must be rearrested and rearrested and rearrested and rearrested. Our police records are full of criminal biographies of those who have spent, since they reached adolescence, far more time in jail than out of it. For such our prisons must be maintained. But we are finding from practical experience that the permanent reformation of the first-offender is possible in far more instances than we realize. In the State of Massachusetts 8o percent of those who have been placed on probation instead of being sent to jail have made good. In our own State we have placed 250,000 offenders on probation-in the last 24 years. We are now placing more than 295,000 yearly, as our courts and our judges have become convinced of the value of the probation system in reducing crime. We have, unfortunately, no figures showing how many of these were permanently reformed, but they have contributed in that time over twenty-three million dollars in fines, restitutions and support of dependents; and I have no doubt that 388

Page  389 Probation and Parole the percentage of permanent reformations closely approximates that of our sister State. There are three ways of dealing with the first-offender: We can send him to jail and keep him there until the expiration of his sentence; we can parole him before that sentence expires; or we can put him on probation after he is sentenced without his going to jail at all. For the information of my radio audience let me make clear the difference between probation and parole which are often confused in the public mind. When a convicted prisoner at the time of his sentence is released from custody but kept under the observation of a court officer without going to prison to serve any part of his sentence, he is said to be placed on probation. If he is actually sent to prison, however, but later found worthy of being released, again under the observation and technically in the custody of a special officer, he is said to be placed on parole. In both cases his past record is looked into before action is taken and a failure to report to the proper officer, or a new offense against the law, sends him to prison to serve out his sentence with added penalties. If the criminal's past history gives good reason to believe that he is not of the naturally criminal type, that he is capable of real reform and of becoming a useful citizen, there is no doubt that that probation, viewed from the selfish standpoint of protection to society alone, is the most efficient method that we have. And yet it is the least understood, the least developed, the least appreciated of all our efforts to rid society of the criminal; I am very glad not only to express my appreciation of the work which your association has done in the education of the public, but, in addressing many thousands of people over the radio at the same time, to do what I can to awaken a greater public interest in probation throughout our country generally. By segregation, by removing the first-offender from the demoralizing society of the habitual criminal, by a study of the criminal himself, treating him as an individual rather than in the mass, we can do much to reduce that staggering percentage of second-of389

Page  390 Probation and Parole fenders. I am proud that this State., largely through the splendid recommendations of our legislative prison commission, has now embarked upon a ten-year program aimed to make our prisons, so far as they can be made, no longer what I have called "Colleges of crime," but true institutions of reform. By shortening the terms of those who show after their incarceration hopeful symptoms of a real repentence, we can add a still greater number of good citizens to our communities. And here I am again proud to report that our State last year has taken the lead in the development of a powerful, efficient and properly financed Commission of Parole. By investigation of the past history of first-offenders or of those who, in the opinion of the judge who tries the case, have been the victims, somewhat, of circumstances and who are not hopelessly criminal in their tendencies, and by the placing of such as are found worthy upon probation, I believe we shall empty our prisons still further. While for some years we have had in this State a certain State supervision and support., it is my feeling that this State can go much further than it has. I am recommending to our Legislature this year that this be made a subject of expert study and that next year we inaugurate a real system of State probation as advanced and effective as our new parole system is already showing itself to be. Economically, probation is to the financial advantage of the State. Statistics show that it costs, roughly, $i18 a year to supervise each person released on probation. Under more watchful scrutiny and closer observation it may perhaps eventually cost as much as $295 for each person. Against that set the $350 to $500 a year it costs the State to keep a man in jail. It is my hope that in New York at least, and eventually in all our States, we shall be continually decreasing the number of our prison guards and wardens and increasing the number of our parole and probation officers. Probation officers, however, must be properly trained and competent persons. In this we have been lamentably weak. I am confident if the Legislature agrees to the investigation I have requested, that we shall find a practical way to secure really quali

Page  391 Thne Unsolved Problem of Prison Labor fled probation officers, just as we are now insisting on really qualified parole officers. It is the State's affair and this whole matter of probation should be made the State's business and put under wide State control. I urge those interested in this problem of increasing crime, in this universal crowding of our jails and continual necessity of building more and more prisons, to support not only in this State, but in all States, the efforts of those who without attracting anywhere near as much attention as they should, have done so much to secure the establishment of probation in one form or another in twenty-one of our forty-eight States. 8 6 ( Address on the Unsolved Problem of Prison Labor. New York City. April 30, 1931 THERE are certain honors which are bestowed, almost automatically, upon the Governor of a State, more in recognition of the position which he occupies than for any particular merit of his own. I feel, however, that your Committee, which for more than twenty years has been striving so intelligently and valiantly to solve one of the greatest problems in our treatment of convicted wrongdoers, has not awarded the medal which signifies their appreciation on account of my position but in recognition of the fact that I also have been working personally to the same end. I feel, in consequence, more than usual gratification and appreciation on this occasion because there is nothing so heartening to one holding public office, as the realization that what he is doing and trying to do is understood and appreciated and approved by bodies such as yours. I have spoken of this problem of prison labor as one of our great penal questions. I think I might almost refer to it as our greatest unsolved problem. Along all other roads toward the proper treatment of the criminal, we have advanced far., and I think perhaps this State of New York, during the past two years, has advanced a little further than any other commonwealth. A 39_%11

Page  392 Thne Unsolved Problem of Prison Labor prison to us no longer is regarded as an impregnable Bastille into which we can throw, without any consideration, convicted criminals of all grades from the petty thief to the hardened mankiller for certain arbitrary and specified sentences, determined by the judges, without any further sense of responsibility than seeing that they do not escape and are not allowed to return to society until the last hour ofl their sentence is over. We have realized for some years past that the criminal is after all a human being and as such is entitled to certain ordinary decencies of civilization - light, air, clean surroundings and a certain amount of exercise and even recreation. We have, however, only fairly recently realized the further great truth, that the average criminal is not only a human being but in nearly all ways very much like ourselves; that up to the time of his conviction he was as much entitled to all the rights of our civilization as we are; and what is more important, that sooner or later, except for those who receive death or life-imprisonment sentences, he will return again to live among us, to become either a useful member of society or a deadly menace to ourselves and our neighbors. With the realization of this fact has come the further understanding that it will be in most cases our blame if he continues in a criminal career and our credit if he quits his evil life. We are proceeding in consequence along new lines. We are separating the hopeless and hardened criminals from the men who yielded to temptation in a moment of weakness. We are studying each convicted person as an individual. We are trying to make his time of incarceration a period of rehabilitation as well, to find out what is good in him and to develop it, to find what is bad in him and eradicate it so far as is possible. We are trying, too, to remove him from the hardening surroundings of prison life and place him on parole, subject always to return. We are even going a step further and whenever possible we place him on probation after he has been convicted, without imposing on him a prison sentence at all. By these methods we hope to solve this terrible problem of our overcrowded prisons, so large a proportion of whose population

Page  393 Thne Unsolved Problem of Prison Labor consists of those who having once committed a crime have entered our penal institutions and become so debased that on their release they know no other course, they have no other object but to commit new crimes and to return within the prison walls again, again and again. But all our new methods, based on this new attitude toward convicted men, succeed or fail in proportion to the extent of our ability to make the term of imprisonment a period during which he will not learn new ways of crime from his fellow inmates, but will acquire knowledge and experience and if possible even a definite trade, which will enable him to return to an honest life and to resist the terrible temptations of need and poverty on his release. Obviously, it will do no good to arrange for a prisoner's parole when he shows evidence of reformation unless we so mold his life in prison as to lead him to desire to reform. There never was a truer adage than that which warns us that "Satan always something finds for idle hands to do." The most demoralizing thing of prison life is, after all, its horrible monotony - the idleness, the lack of anything of interest, the lack of even those small responsibilities which make the busy man almost always a contented man. Only a few have brains so fashioned as to enable them to live in quiet contemplation of nothing in particular. It is self evident that we must have occupation for our prisoners. We do not need to argue that this occupation must be something creative in its nature. To build up a pile of bricks and then tear it down the next day will become after a few days as monotonous as doing nothing at all. This seems obvious and yet it is one of the last things in penal science which we have come to realize. True, convict labor is not new but convict labor as a means of reformation of the convicts, instead of a mere punishment or an economic machine to turn out manufactured goods at impossible prices wherein the State pays the overhead, is a new idea. Over one hundred years ago in the first prison establishment in the City of New York and also the first prison of this kind in the State, there was developed a method of prison administration which, you will probably be surprised to know, included proper

Page  394 Thne Unsolved Problem of Prison Labor classification of the prisoners. In addition to this classification there were also established prison industries which were to bring pecuniary returns to the prisoners who received the wages of their industry. The eyes of the whole world were centered on that enterprise and had it succeeded, all that we are trying to do now would have been done many years ago. Perhaps, had we not entered into the machine age, it would have been successful, but with the coming of machines in manufacturing, human greed was allowed to enter, and the exploitation of prisoners for private contractors began. To the horrors of prison life was added slavery as well. The cruelties that ensued, that inevitably must ensue in any plan of using prisoners for the profit of private manufacturers, wrecked the whole scheme. In the end the exploitation of convict-made goods aroused those who are obliged to depend on free labor in the making of their products. There were riots and bloodshed in the streets of New York City in the '30s during the long struggle to end this intolerable practice. Nor was it really abolished until the '8os when private exploitation came to an end as a result of the campaign led by the Workmen's Council.... Since then we have had the State use a system whereby the industry of the prisoners is confined to the making of articles used by the State. We have had various experiments but we have been able to provide work only for a portion of our prison population. It is a difficult problem to keep so many men employed, to keep them employed not only as a prevention of idleness but also as a help in their struggle for existence after their release from prison, to prevent what they make from competing with the labor of the free men who have done no wrong., to prevent their exploitation either to the advantage or disadvantage of private manufacturers. All this is a problem of no small magnitude. In this State I have asked your representatives to meet with representatives of labor and with representatives of the manufacturers., to sit around a common table and arrive at a real solution of the matter. It is a vital part of the effort to coordinate our whole scheme and theory of prisons and punishment. While they are not yet ready

Page  395 Thne Unsolved Problem of Prison Labor to report a final plan, I want to congratulate them for having achieved the hardest part of the work that lay before them. They have brought together, I think, for the first time these four elements, labor, capital, industry, and the science of penology, viewing these questions from four entirely different standpoints; and they are working out the problem in the friendliest spirit with full cooperation. Other States are watching what we are doing here. If this committee succeeds, even approximately, in solving the first step toward a correct solution of this problem of prison labor, it will have blazed a path which all our sister States will follow, and I shall feel that it far more than myself rightly should deserve the medal of your association. 395

Page  396

Page  397 XVI The Second Campaign for the Governorship IN ADDITION tO the campaign speeches in 1930, which are printed in this chapter, I made the following other speeches: Address at Democratic State Convention, Syracuse, N. Y. September 30, 1930, Public Papers (1930), page 754; Radio Address, Albany, N. Y. October 9, 1930, Public Papers (1930), page 762; Radio Address, Albany, N. Y. October 13, 1930, Public Papers (1930), page 764; Radio Address, Albany, N. Y. October 16, 1930, Public Papers (1930), page 769; Address, Binghamton, N. Y. October i8, 1930, Public Papers (1930), page 774; Address, Utica, N. Y. October 23, 1930, Public Papers (1930), page 795; Address, Bronx, New York City. October 27, 1930, Public Papers (1930), page 8o6; Address, New York City. October 28, 1930, Public Papers (1930), page 811; Address, Yonkers, N. Y. October 28, 1930; Address, Jamaica, L. I. October 29, 1930, Public Papers (1930), page 817; Address, Staten Island, New York City. October 30, 1930, Public Papers (1930), page 822; Address, Brooklyn, N. Y. October 31, 1930, Public Papers (1930), page 826. My opponent in this campaign was Hon. Charles H. Tuttle, who had been United States Attorney for the Southern District of New York. The results of the election were Roosevelt 1,770,342, Tuttle 1,045,341.

Page  398

Page  399 8 7 ({The Candidate Accepts the Renomination for the Governorship, New York City. October 3, 1930 (Continuation and maintenance of program of the first term - Social legislation - Water power - Administration of justice - Farm relief - Improvement of local government - Prohibition.) T 7wo years ago I accepted the nomination for Governor, because I wanted to be a disciple in a great cause -a cause that needed little explaining to the citizens of the State of New York. I am here once more to accept the nomination for Governor for the simple reason that I still march forward in that cause. My theme then was that progressive Government, by its very terms, must be a living and a growing thing, that the battle for it is never ending and that if we let up for one single moment or one single year, not merely do we stand still but we fall back in the march of civilization. During the four administrations of my great predecessor the ground of progress had to be fought for inch by inch, and the same fact holds true of these two years past. Every known kind of wall and boulder has been thrown across our path, sometimes the obstruction of mere inertia, sometimes the opposition of those who for personal, selfish reasons have feared the effect of new things upon their own personal interests. But most often the barrier has been, day in and day out, now in the open, now under cover, the opposition of a Republican leadership which seems to be based primarily on the high-minded, idealistic purpose of discrediting, through me, any and every proposal of the Party which I represent, regardless of merit or reason. Let me make it perfectly clear that in my judgment this Republican leadership does not represent the great rank and file of the men and women of this State who call themselves Republicans. Let me make it perfectly clear that I am confident that they, in large numbers, will recognize this autumn, as they have recog399% e

Page  400 Renomination Jor the Governorship Accepted nized before, that Government at Albany must be and shall be progressive, and that they are still as out of step with the leadership of their own Party as they have been in the past. Now let us look for a moment at the facts. Two years ago in my speech of acceptance I stressed five great objectives: i. A program of social legislation to make New York the leader among her sister States. This has been adopted and our task now is to see that that leadership shall be maintained in the days to come. 2. 1 advocated a definite program for the development of the vast water power resources of the State under constant governmental control and possession. The capitulation of the Republican leaders in response to public pressure is still fresh in our minds. One of the great issues this autumn is whether this great policy shall be maintained and carried through or whether the State will revert, either openly or by hidden means, to private ownership. 3.- I spoke also of the vital need of a comprehensive study by laymen and lawyers of the whole system of the administration of justice. Here again it took two years before the Republican leaders capitulated, but now at last we are about to take action. Whether the result of this study proves to be more than a mere report of a committee depends on the future drive and leadership in Albany. 4. I spoke also of the great problems that faced our agricultural communities. Once more we have a definite record of definite results, following an agricultural program initiated by me, a program for which I received the splendid cooperation of all of the agricultural interests of the State, regardless of party, a program which the Republican leaders were compelled to adopt when they came to the sudden realization of the fact that for a generation they had been in control of the Legislature and during that whole period had never once gone to the root of the farm problem. Today agriculture in the State of New York is beginning to get on its feet, and the simple question is whether the existing program shall be further extended and amplified during 400%I

Page  401 Renomination for the Governorship Accepted the next two years or whether we shall go back to the period of inaction and drift. 5. Last of all, I recommended the reorganization of the lower units of county and town government, applying the same principles which had already been so successfully worked out in the reorganization of the State Government. That this should be done under the permissive principle of Home Rule, I have made wholly clear at all times. This great reform has remained pigeonholed in the desks of the Republican legislative leaders at Albany. It is the one outstanding recommendation of mine which has been thwarted at every turn. The selfish, partisan reasons behind the inaction of these leaders are apparent to everyone; still I am confident that the force of public opinion behind a driving leadership, based on the principles of good government, rather than on the dictates of partisan advantage, will bring inevitable results. There are, of course, other matters which the voters of the State will scan this autumn. Some of them relate to the individual candidates, now that they have been named by all parties. For instance, three days ago I asked my distinguished opponent whether or not he would sign a State enforcement act, a question based on a widespread belief that some agreement of this kind was made to secure the support of Assemblyman Jenks and other dry leaders who have fought for this measure for so many years. It required over two days of painful meditation before a reply to this very simple question could be prepared, and it is noteworthy that the answer was not forthcoming until my friend had hastened over to Philadelphia and consulted with the President himself. His answer bears earmarks of the President's policy of being wet and dry at the same time. It is characteristic of the way the question was dodged in the national campaign by calling the Eighteenth Amendment a "noble experiment."p For the benefit of the wet members of his party, my opponent starts out by declaring that he has "no hesitancy" - there is a touch of humor, remembering the forty-eight hours, in that "4no hesitancy " phrase - "in declaring that the National Law forms a part of the State Law anyhow and that the urgent thing is to 401%

Page  402 Renomination for the Governorship Accepted proceed with enforcement rather than to defer to the possible passage of some particular bill." This is a long and lawyer-like way of saying "Yes" and at the same time "No." But the shadow of Assemblyman Jenks falling across his page at this particular point, and remembering his confidential conversations with that gentleman, he hastens to add that the nuisance law already affords a State enforcement possibility and that if "experience demonstrates that this law should be strengthened in order to fulfill its purpose more effectively, I would favor such strengthening." Just what does this mean? Does it mean a State enforcement act in some spots and not in others? It must be clear to everybody what it means. No wonder Mr. Jenks approved of his candidacy. His recent statement only advocates what Mr. Jenks and the drys have tried to do for the past two years, to pass the State enforcement act, and failing that, to pass an enabling act that would give us a Volstead law county by county. Listen to what he says: "I believe that legislation extending to counties or other political subdivisions full power within their own borders to use their local courts and police in the enforcement of prohibition should be immediately enacted." And then he goes on to say: "I would not approve a state-wide measure following the provisions of the Volstead Act." I asked him, "Will you, or will you not approve a State enforcement act?" And he said, "I will not approve a state-wide enforcement act." Who is hedging now? Oh yes, "wet to the wets and dry to the drys." It is the same old story of Republican hypocrisy. I noticed that my distinguished opponent is troubled and solicitous over what someone has told him. He thinks that there appears to be a discrepancy between my general views as to party planks and the party platform itself. I use the term "what someone has told him" advisedly, because it is evident that he himself cannot possibly have read the platform. The platform says the Democratic Party pledges itself to the repeal of the Eighteenth Amend402

Page  403 Renomination for the Governorship Accepted ment and to such measures as will definitely and effectively banish the saloon. I stand definitely on that platform. I note, too, that he has discovered the existence of the nuisance law - this marvelous weapon which has lain idle and which the drys can feel sure he will strengthen and make effective, if he is elected Governor. In a speech last night, and in articles printed in' one of our great papers and to which no denial has been made as yet, a certain Major Campbell flatly claims that his efforts as Prohibition Director to invoke the nuisance law in the City of New York were blocked by Mr. Tuttle whenever called to his attention. And as long as I am speaking of my distinguished opponent, let me say that I am afraid he has been so long a prosecuting officer, who looks at everything with the viewpoint of securing a conviction in any way possible, that his sense of abstract justice has been somewhat blunted and that he thinks in terms of convictions rather than in terms of judicial determination. This is rather amusingly illustrated by his proclamation that I had given the special Grand jury a "wooden hatchet"l with which to do its work. Permit me to inform him that I did not give the Grand jury a hatchet of any kind, wooden or otherwise. Their weapons are the scales of justice and the sword of justice, to protect the innocent as well as to punish the guilty. During the next two weeks, as you know, it will be necessary for me to spend nearly the whole of my time, under the Constitution and the law, in the preparation of the Executive Budget. During this time I can give little thought to the campaign or to, myself as your candidate. During these two years I have believed that a personal, first-hand knowledge of the needs and conditions of every part of the State would fit me best for the task of Chief Executive. It is for this reason that I have visited every part of the State and have sought all possible information. I read that my distinguished opponent has announced that he is going to proceed up-State and, as he was quoted in the press, "get down among the people." I know the people will be properly flattered at his condescension, his descent from the high heights he occupiesI and 4 03

Page  404 Campaign Address, Buffalo, N. Y. I hope, at the same time, he will inform himself on those great matters of State policy about which he has as yet said nothing, those vital questions affecting the welfare and the prosperity of all our fellow citizens, men and women, rich and poor. These are the real issues of this campaign. He will find his visit among the people most illuminating and informative. We now enter formally into the campaign. Never has a Party gone before the public with a finer record of platform pledges fulfilled. What we have done in the past two years will, I am certain, convince the great majority of our voters that what we promise to do in the next two years, if we are retained in power, is not empty words but solemn pledges which will be fulfilled in the future as our pledges have been fulfilled in the past. Lack of leadership at Washington has brought our country face to face with serious questions of unemployment and financial depression. Each State must meet this situation as best it can, and I am sure that at this critical period the sober judgment of the electorate of the Empire State will lead them to vote for -that Party which for many years past has so wisely guided the policy and so greatly increased the prosperity of this greatest of all Commonwealths of the Union. 8 8 (1Campaign Address (Excerpts), Buffalo, N. Y. October 20, 1930 (Depression and unemployment - "No political party has patent rights on prosperity" - Public works and employment - Rural tax reliefLabor legislation.) IN DISCUSSING governmental problems, if they are of current interestI it is essential and it is right to give the history of those problems, because the record going back over the past two years has a very direct bearing on the way in which we must approach and seek to solve the problems of the present. That is why I have been glancing over the files which I had 404%

Page  405 Campaign Address, Buffalo, N. Y. collected during the 192 8 campaign. I find in them a number of quotations made during that campaign which I want at this time to set forth merely for the purpose of the record, and for no other reason. You will recall that I was running for election as Governor of the State of New York against Mr. Albert Ottinger. You, will also recall that at that time Mr. Herbert Hoover was running for election as President of the United States. I want to read to you some extracts from speeches during the campaign and from the Republican platform of that year: "The history of our party demonstrates that... through the wisdom of Republican policies, and the capacity of the Republican Administration., the foundations of the high American standard Of wage and living have been laid, and the greatness and prosperity of the country firmly established. No better guarantee of prosperity and contentment among our people at home.00 can be given than the pledge to maintain and continue the Coolidge policies...... That is taken from the Republican platform of 19,98. "The people... know that the very happiness of their homes, and the comfort of the average man and woman is bound up in the outcome of every Presidential election because prosperity is the key to happiness, and the Republican Party and the Republican protective principles have, more than any other element, created our present-day prosperity, and they will insure that prosperity for the future...0." That is an extract from a speech of Albert Ottinger., running for Governor of the State of New York on October 9, 19 28. "We in America today are nearer to the financial triumph over poverty than ever before in the history of any land. The poor man is vanishing from among us. Under these impulses, and the Republican protective system., our industrial output has increased as never before, and our wages have grown steadily in buying power. Our workers, with their average weekly wages, can today buy two and even three times more bread and butter than any wage earner in Europe. At one time we demanded for our workers a full dinner pail. We have now gone far beyond that concep

Page  406 Campaign Address, Buffalo, N. Y. tion. Today we demand a larger comfort and greater participation in life and leisure. - -.-." These are extracts from campaign speeches made by Herbert Hoover in the fall of 1 9,o8. "The way to buttress our prosperity, to give every employer and employee, producer and consumer a feeling of greater security as he looks forward to the next four years with all their uncertainties, to secure the most earnest effort under competent leadership to deal with all the economic difficulties that confront us,, is to continue the policies of the Republican Administration under the Presidency of Herbert Hoover...." That is an extract from a speech by Mr. Charles E. Hughes delivered at St. Joseph, Mo., October 23., 1928,, in behalf of the election of Herbert Hoover. Those extracts read strangely tonight. Then came October,, 192o9. Again for the record I want to state what I believe to be the simple facts. It has been well said by many national leaders in both parties that during the final period of inflation and stock market plunging not one single step was taken by the responsible officials of the national Administration to put on the brakes, or to suggest even that the situation was economically false and unsound. Thousands of citizens in every part of the United States gained the feeling that the national Government was actually lending encouragement and that all was well with the country. A sound public opinion recognizes today,, I am very certain,, that if Washington had had the courage to apply the brakes the heights to which the orgy rose would not have been so high, and as a result, even if a slowing up of industry had come., the fall from the heights would not have been so appallingly great. The other matter of record which today receives censure from many of the most conservative and sound financial and industrial leaders, is the fact that after the crash of last autumn the Republican Administration began and continued to hand out from Washington false information concerning the seriousness of the situation. The President himself very properly called conferences of the leaders of industry from various parts of the country and

Page  407 Campaign Address, Buffalo, N. Y. asked them to do everything possible to maintain production, but he was wrong in saying in December, "I am convinced that through these measures we have reestablished confidence; industrial unemployment and suffering which would otherwise have occurred have been prevented." The extent of the rapidly growing condition of unemployment was concealed. One optimistic bulletin after another appeared. It was a desperate and futile attempt to restore prosperity by means of proclamations from Washington. Month after month as conditions became worse, the messages of good cheer became more and more optimistic. As working me n were discharged in thousands, they read statements made by the Federal Administration, that "Things were getting better." Although the times called for quick and decisive action by the Federal Government, nothing happened but words. That was the time, if ever, when Government projects should have been accelerated. That was the time., if ever, when public works should have been pushed so as to provide employment. That was the time., if ever, that increased appropriations for Federal aid, roads, river and harbor improvements., veterans' hospitals, military post construction, and public buildings should have been speeded up. Instead of that, as was pointed out by the Senator from' this State, Robert F. Wagner., on September 29, 1930, the total appropriations for the current fiscal year for those purposes were $25,000,000 less than the amount of similar appropriations for the last fiscal year. This same Republican Administration in Washington refused to permit the House of Representatives to enact into law the bills introduced by the Democratic Senator from this State which would have helped the situation and which would have prepared the country against its increase or recurrence. I need not dwell on the situation today. I need not comment upon the business depression and the cruel condition of unemployment which are upon us. I have quoted from these various speeches of Republican can

Page  408 Campaign Address, Buffalo, N. Y. didates of two years ago and I have summed up fairly, I think, the two great reasons for blaming the Republican national Administration. But let me make it definite and clear.that I do so simply to sum up the record and not for the purpose of obtaining partisan advantage in this campaign. The one great purpose of setting forth the record as I have is only, and let me stress that word only, to give definite proof of what the Democratic Party has always maintained - that no political party has any monopoly on prosperity. Apparently even the Republican leaders in 1930 have at last come to realize it. How well do I recall the campaign speeches of two years ago. How well do I recall the repeated appeals for votes on the strength of prosperity at Washington. Speech after speech was devoted to the subject of Republican prosperity and to the necessity of voting under the eagle in order to continue that prosperity. State campaigns have been waged for the last six years by the Republican Party almost exclusively on the question of national prosperity. This year there seems to be a dead silence so far as the Republican Federal Administration is concerned. Whereas formerly the name of Herbert Hoover or Calvin Coolidge appeared at least five times in the speech of every Republican candidate for office, today we look in vain for mention of the names. Indeed, this attitude of silence, so far as Federal questions of prosperity are concerned, has led some of the Kepublican candidates even to criticize my party and me for calling it to the public attention. This must seem strange indeed to those of us who remember the campaign speeches of recent years.. And so I have spoken of unemployment and depression in this State and shall continue to do so, not for the purpose of belaboring the Republican national Administration, but for the purpose of proving for all time, that the Democratic Party was right in its claim that no political party has exclusive patent rights on prosperity. It is my thought, of course, and in this I am perhaps partisan, that the election of Democratic Congressmen from this State this autumn will do much toward helping the Congress of the United 408

Page  409 Campaign Address, Buffalo, N. Y. States to build a more sane, a more sound and economic structure for the Nation than has been done in the past. As to the existing situation in our own State, as Buffalo's greatest citizen, Grover Cleveland, would have said, "that is a condition and not a theory." We should face this situation honestly and bravely. There is no need for abject pessimism. The strength of this country, the wealth of its natural possessions and resources, the industry, energy and patriotism of its people, are, in the last analysis, the ultimate guarantee of a return to better times. I have no doubt that capital and labor alike can, and ultimately will, put their shoulder to the wheel to pull our industry out of the deep mud. As a State Government, New York must, of course, and will, of course, do its share and more. It can do it, and has done it, by extending the construction of its public works so as to provide employment for its citizens. The total amount of money available during this calendar year amounts to $55,000,000. Already, $33,000,000 have been put to work. The balance of $22,ooo,ooo will be put to work as follows: $9,000,000 this month, $7,000,000 next month, and $6,ooo,ooo in December. In this way we carry on a uniform plan of work--a total amount more than $20o,ooo,ooo greater than ever before in the history of the State. When the Legislature meets in January it will give us, I am confident, another large sum to continue the work. That the record of this State in progress on its public works is ahead of that of any other State is not open to contradiction... I also wish to point out to you the great savings which have been brought about in your local county and town taxes as a result of the program of rural tax relief which was initiated by me. You will recall that immediately after my election two years ago I appointed an Agricultural Advisory Commission consisting of various professors in agriculture, leaders of various farm and agricultural societies, publishers of farm publications, rural tax experts and practical farmers and dairymen. This commission 409

Page  410 Campaign Address, Buffalo, N. Y. met and made recommendations to me which I transmitted to the Legislature as soon as I got to Albany. The commission pointed out at the outset that the most crying need of the rural dwellers was relief from their ever-mounting taxes for local purposes. I want to point out to you that while these taxes have been called rural taxes, they bear down upon dwellers in the cities and in the villages as well. For example, right here in Buffalo, the residents of this city pay a great deal in taxes which go into the County Treasury. In addition to paying city taxes, each and every one of you also pays a county tax. Wherever, t herefore, a county is saved expenditures and taxation, that saving helps not only the farmer, but every man, woman and child in the county, including those in the city of Buffalo.... I need not point out to you who initiated and started these reforms. It is true, of course, that both Republicans and Democrats in the Legislature voted for them. But although the Republican Party has been in control of the Legislature absolutely for twenty years, nothing was done to relieve the counties of the State from this staggering burden of taxation until I became Governor, and until I pointed out the way. This plan of rural tax relief has saved the counties of all the State over $24,000,000 each year. Here in Erie County, the amount which has been saved, $1,400,000., should come off your local tax bills. If it has not, I believe you should make inquiry to ascertain where this tax money is going. Returning once more to the subject of labor and employment, I am confident that the working men and women of this State have a full realization of the fact that the Democratic Party has been the sponsor of 99 percent of all the progressive labor legislation which is now on our statute books. Labor has come to depend on the Democracy for its progress. It was in this very city that I received from the President of the American Federation of Labor that hearty commendation for my efforts in behalf of the working classes of the State. It is with considerable pride that I read from that letter, setting forth the attitude of the American Federation of Labor toward

Page  411 Campaign Address, Buffalo, N. Y. what my Administration has done for labor at Albany. President Green writes to me: "Your leadership as Governor of the State of New York stands out in a most striking way and the work you are able to do must be classified as a most rare accomplishment. You deserve the support of labor, and of all classes of people who seek to perpetuate our free institutions and who are engaged in preserving our principle of free government through the advancement of the highest and best interests of the masses of the people. I express the earnest hope that all the working people and their friends in the State of New York may give to you their undivided support in your political and social reform policies so that you may be permitted to give to the people the benefit of your service." I consider that not so much a tribute to what I have been able to do for labor, but rather to the policies of social progress and high-minded legislation which have characterized your party and my party, the Democratic Party of the State of New York, in its continued and untiring efforts to help the physical, mental and moral condition of the average man., woman and child in our State. In line with this, I regret very much that although, with the help of public opinion, I was able to persuade the Legislature to adopt far-reaching reforms for labor, I was unable to get them to go along with me in my recommendations for further State legislation to regulate private employment agencies. Too often have the laboring classes of the State been deceived and defrauded by private employment agencies. The State of New York., as well as many cities in the State, is doing what it can to help labor through public employment agencies. I believe that the protection of the strong arm of the State should be afforded to the laboring classes so that fraudulent or dishonest employment agencies will no longer be able to continue their unlawful practices on the honest working people of the State. I have given you a simple and a true recital of the record. I have spoken of what has occurred in the past. I have given you a background by which you may judge the future. 411 i

Page  412 Campaign Address, Rochester, N. Y. Now, however, it is time for us to put our shoulders to the wheel and work for that future. As I have said before, we can all do our share. It is not a matter of party. It is a matter of good citizenship and good Americanism. Relief for unemployment, relief for suffering and privation cannot be brought about by Republican remedies alone. Equally certain is it that it cannot be brought about by Democratic remedies alone. Let us apply united American remedies. This is not the time to inject party politics or campaign propaganda into the situation in any shape, manner or form. This is not the time for curtailment, for reduction in wages, or for cessation of business activity. On the contrary, this is the time for courage and action. Let us here and now, regardless of party, pledge ourselves individually and collectively to carry on, to face the future with that high courage and desire for concerted action which have always characterized the American people in every difficult hour. The path of our duty is clear. You and I know that as good Americans, we will manfully and bravely follow that path. 89 ([ Campaign Address (Excerpts), Rochester, N. Y. October 21, 1930 (Prisons and parole - Hospitals - Public works by bond issue - "Poor houses" - O ld-age assistance - Prohibition.) WHEN the present history of the State of New York is written a generation hence, the years 1929 and 1930 will be marked with a double star because these two years have seen, in my judgment, a notable change in popular understanding in relation to two great problems of modern humanity. Most of us know that nearly 100 years ago, an Englishman by the name of Charles Dickens did more than any other individual to revolutionize the whole prison system of England. Through

Page  413 Campaign Address, Rochester, N. Y. his writings he gave people to understand that for the first time their unfortunate brethren who, for one reason or another., were committed to jail, were still human beings; that jail conditions throughout England were horrible beyond belief; and that these jail conditions had not changed for the better in any material respect since the Dark Ages of a thousand years before. In the days of Charles Dickens, most of Europe, and we here in the United States also, began to replace the dungeons and filth and starvation and nakedness and immorality of the older prisons with new structures which., in 1830 and 1840, were considered models of their kind. During that period nearly a hundred years ago, the State of New York erected the great prison structures at Sing Sing, Auburn, and Dannemora. And, with the exception of the newer prison at Great Meadow, we have carried on, during this whole time, with these cell blocks of now very ancient vintage. Is it any wonder that these structures are out of date? It is a fact that for many years, the handful of people who are really interested in prison reform and in bettering the conditions of prisons and prisoners have been demanding new buildings and a new system throughout the State. The difficulty has been, frankly, that the public itself has taken little or no interest, and the result has been that for the past twenty years, we have had only piecemeal reform. During the past few years, however, startling events all over the United States have brought the whole prison problem to the front. First came the crime wave itself, and with it, a new type of prisoner. Then came a series of riots in the prisons of many different States and in Federal prisons as well. This was followed by a publicity for the whole subject which is at last bearing good fruit. A year ago last summer I held a conference with t 'he legislative leaders, and we entered into a gentleman's agreement for a building program to cost $30,000,000 - $ io~ooo,ooo a year for three years - which program will completely rebuild our antiquated structures, give decent living conditions, good sanitation, plenty of exercise, new forms of labor and instruction, and finally,

Page  414 Campaign Address, Rochester, N. Y. though by no means the least important, a system of parole which is aimed to give the best possible chance to every individual prisoner to rehabilitate himself as a law-abiding, respected member of the community in which he lives in the shortest possible time.... The second part of this great program relates not to prisons, but to the hospitals of the State. And here it is not because of any particular lack of public interest, but because of an increase in the wards of the State beyond any previous estimate, that we have been facing an emergency during these two years. Very soon after we took office, Lieutenant-Governor Lehman and I began a systematic inspection of the hospitals of the State. We found the condition of overcrowding to be more than serious. It was disgraceful to our State and a distinct handicap in caring for the patients along modern medical and scientific lines.... In practically every State Hospital and State School the actual sleeping quarters of the patients have been so overcrowded that the beds are literally touching each other, and many of the patients have been forced to sleep out in the corridors. It is impossible to give the individual attention and care to each patient that should be given.... The point I want to drive home tonight is that, both in the hospital and the prison programs, I have laid down a perfectly definite and comprehensive plan pointing to the year 1935. In the case of the prisons, this means the appropriation of $20,000,000 more, $0o,ooo,ooo next year, and $10,000,000 the year after, thus giving us completed prisons by 1935, capable of housing under modern conditions every one of the 9,500 prisoners which the State is estimating to have in that year. In the case of the hospitals we must provide 6,000 more beds by next year and 6,000 in 1932; and when these buildings are completed by 1935, they will house under proper conditions all of the hospital wards which the State will have on that date, and also relieve the overcrowding in the present institutions. The total program for hospitals and prisons will cost about $70,000,000 and it will be impossible to pay for this out of cur414

Page  415 Campaign Address, Rochester, N. Y. rent revenues,, unless the State raises that amount by new taxation. We are all, I think, opposed to that, and this is the primary reason for the bond issue which will be submitted to the voters of the State on November 4th, this year. This $50,000,000 bond issue is to be used at the rate of not more than $20,000,000 a year toward the program of hospitals and prisons. Here again, partisan politics play absolutely no part. Furthermore, common sense dictates that the cost of the greater part of these splendid new buildings should be spread over a period of years. The buildings themselves are of the most modern permanent fire-proof type of construction; and it is reasonable to assume that they will be useful to the State for at least 100o years to come. To spread this cost over a period of 25 years is in accordance with sound business principles, and at the same time lifts that much burden from the backs of the taxpayers this year and the following two years. It must be clearly understood that if the bond issue does not go through, some next tax will have to be imposed.... We, in this State, have established a new system of parole for prisoners. This system is in charge of a Parole Board of experts recently created at my suggestion by the Legislature. The purpose of the creation of this new Parole Board was not in any sense to make parole more easy or parole supervision more lenient. It was rather to make it more scientific and more effective. It was to give to the case of each prisoner the best that modern thought and modern social science could provide so that his individual case can be studied with a view toward rehabilitating him to good citizenship. This new Parole Board is now functioning. I believe tha 't under its careful and scientific supervision we shall find that there will be an increase in the proportion of those who, on leaving prison, go straight and become good citizens. Do not forget that out of every i oo men who are sent to prison, 929 of them come out again. Are you not interested in what they are when they return to live as our neighbors? Let us, by providing accommodations which meet the essen415W

Page  416 Campaign Address, Rochester, N. Y. tials, at least, of decency, help build for better social conditions in the generations to come. Along with the dilapidated and antiquated prisons and hospitals which we have inherited from past generations, there is an institution which you and I both want to see eliminated as far as possible. This institution can never be made to conform with our modern social consciousness, no matter how much money we put,in it or how much we improve its physical plan. I mean the "tpoor house." An alarmingly increasing number of aged persons are becoming dependent on outside help for bare maintenance. No greater tragedy exists in modern civilization than the aged worker, who, after a life of ceaseless effort and useful productivity., must look forward for his declining years to a Itpoor house." It is, to my mind, no longer proper to provide for our aged destitute citizens in a "poor house," where that can be avoided. Nothing is so horrible a nightmare to workers of our State as the fear of that gloomy institution. This State, for some time past has abandoned the policy of taking care of orphans in orphan asylums. We have substituted for this archaic system a new one of Child Welfare and Widows' Pensions, whereby the State and locality contribute to the maintenance of children in their own homes, although the breadwinner of the family may have been taken away. Money has been given to the mothers of fatherless children so that they may maintain their children at home instead of sending them to an institution. Mind you, it is not only a more humane and merciful solution of the problem, but in the long run will be even more economical, since the child can be maintained at home for even less than the cost of decent, modern orphan asylums. The same arrangement, of course, should be made for our aged poor. They should not be taken away from their homes and placed in hospitals and public institutions. If the State and localities want to aid these people in their declining years, it should not be done in a "Poor house," but should be done under conditions 4 16r

Page  417 Campaign Address, Rochester, N. Y. where they may maintain in their own homes, their independent lives and hold up their heads as citizens of America..00 We, in this State, have at last made a start in our sacred duty of taking care of our dependent aged. It is to my mind, only a start. I hope to see the time come when this relief of old-age assistance will not in any way even resemble a dole system. I look forward to the time when every young man and young woman entering industrial or agricultural or business activity will begin to insure himself or herself against the privations of old age. The premiums which that young man or young girl will pay should be supplemented by premiums to be paid by the employers of the State, as well as by the State itself. In that way, when the young man or young girl has grown to old and dependent age, he or she will have built up an insurance fund which will maintain them in comfort in their years of reduced activity. In this way, their assistance will be a result of their own efforts and foresightedness. They will be receiving not charity, but the natural proil ts of their years of labor and insurance. I hope to have the opportunity of continuing my efforts to obtain this kind of old-age insurance which our most progressive thought demands. Connected with this question of our institutions, and the inmates thereof, is another question of extreme social importance. It is because of my deep interest in modern social problems such as proper housing facilities for the wards of the State and for effective means of combating crime in general that I have considered so earnestly the whole question of temperance. It is bound up, of course, with crime, with insanity, and only too often, with poverty. It is increasingly apparent that intoxication has no place in this new mechanized civilization of ours! In our industry, in our recreation, on our highways, in our very sports, a drunken man is more than an objectionable companion; he is a peril to the rest of us. The hand that controls the machinery of our factories, that holds the steering wheels of our automobiles, the brain that de-.4.17A

Page  418 Campaign Address, Rochester, N. Y. cides the course of our huge financial organizations, should alike be free from the effects of drugs or alcohol. To those interested in social progress the question of temperance and the reduction of intoxication has always been a most serious and difficult problem. I believe that the solution which was attempted by the American people after the war, the solution by legislative and constitutional fiat, has been a complete and tragic failure. It has been a failure for two major reasons. In the first place, it has attempted to legislate into being a condition that cannot be attained by legislation but only by the slow and orderly process of education, and, second, because it has attempted to encroach upon fields which should belong exclusively to the respective States of the Union. I need not point out to you the general encouragement to lawlessness and to a widespread disrespect of law itself which has resulted from this attempt. I need not point out to you that it has been a prolific source of corruption., hypocrisy, crime, and disorder. The situation has become impossible and intolerable. I, for one, believe that it is time to retrace our steps, for we find that we have wandered far from the firm road toward eventual temperance into a hopeless morass of crime and law defiance. We must start afresh. And the first step of that start should be as quickly as possible - the repeal of the Eighteenth Amendment. It is becoming obvious that each sovereign State in the Union should be given the right to determine for itself whether alcoholic beverages should be made, manufactured, sold or transported within its borders. Following the repeal of the Eighteenth Amendment., New York State must and will take such regulatory measures as will promote temperance definitely and effectively banish the saloon and recognize the principle of home rule in all localities. I stand flatly upon my party's platform; and I assure you that all of the Democratic candidates are united in this position. There is no diversity or doubt among us. We stand together. We do not 418

Page  419 Campaign Address, Syracuse, N. Y. attempt, one of us, to appeal to one portion of the State's population, while another appeals to a different portion. We believe that the people of this State as a whole are interested in temperance, that they want temperance by constitutional and orderly means. While we have the greatest respect for those in our State who still believe that temperance can be best served by the continuance of Federal constitutional and legislative enactment, we disagree with them as to method. We believe that the whole question should be left to the determination of the respective States themselves. And so we regard this question as a part of that larger program of social reform and progress. We believe indeed that a solution of it will help solve the State's problem with respect to its institutions and with respect to the needs of its citizens..00 90 (fCampaign Address (Excerpts), Syracuse., N. Y. October 22, 1930 (Cheap electricity in the home and on the Jarm.) I WANT to talk to you tonight on a subject which I deem of paramount importance to the State., but on which the Republican Party this fall cannot point to its record with great pride. It has been a matter of controversy for many years in this State. It has been discussed at length in practically every gubernatorial election in the last ten years in this State. It has been referred to in this campaign as one of the dominant issues. Apparently, however, so far as possible, the strategy of the Republican campaign seems to be to talk as little as possible about the subject. I refer to the question of the development of the water power resources of the State by a public agency for the public benefit. I am trying in this campaign to bring this subject as close to the homes of the voters as I can. I am trying to point out to our citizens how the development of electricity by the State will directly affect and benefit them in their daily lives.

Page  420 Campaign Address, Syracuse, N. Y. While it is true that industry, and particularly manufacturers, have for years enjoyed the benefits and advantages of electricity, it is equally true that the average small consumer in his home is just beginning to realize how important it is for him to obtain not just electricity, but cheap electricity in his home. It was clearly brought out before the Commission on Revision of the Public Service Commission Law why the power companies were willing to sell cheap electricity to big industrial consumers. It was because a large manufacturing corporat Iion could produce its own power very cheaply, and the utility companies were compelled to sell electricity at low rates in order to prevent these large corporations from setting up their own plants and producing their own electric power. In other words, the competitive principle protects the corporations against exorbitant rates, whereas the private home owner is compelled to buy from a monopoly because he could not under any circumstance produce his own electricity. We all know that the great magic of electricity was originally used for lighting purposes only. It then spread to the factory for industrial uses. Now, however, the time has come when electricity should be carried right into our very homes so as to lighten the drudgery of housekeeping. You and I know that scores of electrically operated household appliances have been invented. Of course, the housewives of the State cannot enjoy these new inventions as long as the rates for current continue to run as high as they now do. We can observe at close hand the benefits of cheap electricity in the home. Across the St. Lawrence River is the Province of Ontario, Canada. There electricity is developed from water power, by what is known as the Hydro-Electric Commission of Ontario, through a league of municipalities where service is rendered to each class of consumer on a strictly cost of service basis. It has been estimated by experts that for an average family of four people occupying six rooms, and about 1,000 square feet of space, it would require about 285 kilowatt hours to run a completely electrified household. This means the use of electricity for light, cooking, refrigeration, ironing, toasting, vacuum clean

Page  421 Campaign Address, Syracuse, N. Y. ing, radio operation, washing machine, fans, waffle irons, chafing dish and other kitchen appliances. I need not dwell at length on the reduction in household labor which such electrical appliances could bring about. In Toronto and other large cities of Canada, it would surprise you to know that all of these appliances can be operated for as little as $3.40 per month. I mean that a woman could have all the benefits of these household labor-saving devices for a month, at the rate of $3.40. I am sure that that is a sharp contrast to what you people in Syracuse, in New York, in any city, or in any country district, would pay for the same thing. As a matter of fact, you in Syracuse would pay almost three times as much; and, at that, you in Syracuse enjoy a rate which is at least cheaper than most other cities of the State. In New York City, for example, the housewife, for the same appliances, would pay almost six times as much per month, or $19.95. Down in Westchester, which pays almost the highest electricity rates of this State -Mt. Vernon or White Plains, for example -the rate would be almost eight times as much, or $25.63. Close by here, in Auburn, and in Rochester, the rate would be $13.40. In other words, whereas a woman in Ontario, Canada, in a city of the size of Syracuse can enjoy a completely electrified household for about $3.40 per month, here in Syracuse you could only get your lights, electric refrigeration and perhaps a toaster. The idea of cooking by electricity at the rates now prevailing in our State is out of the question, except for rich people. In New York City an amount of $3.40 a month would perhaps buy electric lights and maybe an electric iron and a toaster. In New Rochelle, down in Westchester, you would be lucky to get your lights alone for this amount; and in Geneva, it would all be consumed in paying merely for electric lights. Now of course there are several reasons why there should be such wide difference in rates between the cities in Ontario and the cities in New York State. A kilowatt of electricity is the same whether it is used in Canada or in New York. It takes the same number of kilowatts to cook a beef stew in Toronto as it does in Syracuse. There are several reasons why there should be the 421

Page  422 Campaign Address, Syracuse, N. Y. wide difference in cost for these kilowatt hours. Some of these reasons such as our failure in the past to regulate effectively the public utility companies of the State, and more particularly, the electric light and power companies, and the absence in this State of the effective threat of competition by municipalities, I shall discuss in later speeches during this campaign. It is unquestionably true that the breakdown in regulation has done much to keep our electrical rates high and that we have been far behind other Governments in permitting our municipalities to go into the business of selling their citizens electricity whenever their citizens wish to do so, and whenever they find that they are being charged unreasonable and exorbitant rates by their local utility companies; but I wish to concentrate on what is by far the most important and fundamental reason. In Canada, this League of Municipalities develops electricity from their own water power. They develop it for the benefit of their own citizens. They sell it to their citizens at as near cost as possible. While, for decades, we have been permitting the millions of horsepower lying in the flow of the St. Lawrence River to go idly by on their way to the ocean., the Canadian municipalities have been taking advantage of their natural water power resources so as to convert them into cheap electricity. Here in New York we have not been so wise. We have given franchises to private corporations to develop electricity from both water power and coal. After the electricity has been developed by these private corporations, they, of course, naturally want to sell it for as great a profit as they possibly can. They naturally are not interested in the consumer. They are interested only in their own profit. In Canada, electricity is more cheaply developed and is sold only with a view toward benefiting the consumer. In New York., we have electricity developed in a more expensive manner, and sold primarily with a view toward benefiting the private corporation.. 0 I had long given the subject much consideration and had come definitely to the conclusion that that policy had been uneconomic and unsound; but as I stood on the banks of the St.

Page  423 Campaign Address, Syracuse, N. Y. Lawrence and Niagara Rivers and saw this rich possession which should rightfully belong to the people of our State, going into the power houses of private corporations, I formed a firm resolve that so long as I was Governor, and so long as it was at all possible for a State agency to develop these resources., no more would be given or leased to private corporations.... When I first came to Albany we were no nearer a solution than ever before. The Republican leaders were still for private development. They had for years been engaged in an attempt to deceive the people of the State by such phrases as inalienable rights of the people in the fee of their water power resources. They used these high-sounding expressions and at the same time recommended that the development be by means of leases for long terms.... In my speech of acceptance, as the Democratic candidate for Governor, I stated that the time, had come for the definite establishment of the principle as a part of our fundamental law, that the physical possession and development of our State-owned water power sites shall not pass from the hands of the people of the State. In my very first annual message to the Legislature, I asked them to take up the question of the development of our water power resources so that the title and constant control of the power generated at the sources shall remain vested in the people and shall not be alienated by long-term leases. I asked the Republican leaders of the Legislature to introduce these bills themselves, so that it could be made a non-partisan measure. They refused to do it. I then asked the Democratic leaders to introduce it., and they not only introduced it., but made motions to discharge the Republican committees from consideration of the bills., so that each individual legislator might have an opportunity to express himself on the matter. The Republican leaders would not even permit the bills to get out of the committee and they were smothered. During the last days of the 19,9 session, I again urged the Legislature to pass this legislation,, and again they refused. In the meantime, public opinion had become more and more

Page  424 Campaign Address, Syracuse, N. Y. aroused. It was becoming more and more felt. Finally, the next year, 1930, after I had again requested the Legislature to take steps toward this development and when they could no longer withstand the force of public opinion, they introduced and passed a bill providing for a commission to be appointed by me to set up a plan whereby the water power resources of the State on the St. Lawrence River could be developed by a State agency for the benefit of the consumers themselves so as to provide the cheapest rates and best service for the people of the State. That commission has been appointed by me and is now at work formulating a plan by which I hope the people will ultimately obtain the real advantages in cheap electricity which their natural resources contain.... But still the surrender was only a half-hearted one. I was indeed surprised to read this in the 1930 platform of twe Republican Party: "We promise a speedy solution of the problem of development of water power resources of the State which shall be based on sound and economic principles rather than on political expediency." Those words have a familiar air. I used to read words like those in the Republican platform which had definitely declared for the policy of private leases. Frankly, I do not like that language. I much prefer, and I am sure the voters of the State will much prefer, the language of the Democratic platform, which says on this subject, "Electric energy should be developed by the State from its water power resources in order to insure low-priced electricity." Now in this campaign, let us face the obvious facts. You -and I know who the leaders of the Republican Party are. You and I know that these leaders or at least a great many of them are definitely and publicly aligned with the great electric utility companies of the State. They are officers and they are large stockholders in electric and power companies which, in combination, have almost a monopoly of electricity and power in this State. Do they want the State to develop this water power or would they like to have their own companies do it? Are they interested in providing cheap electricity for you or are they interested in providing large profit for themselves? You and I know that these leaders of the 424%

Page  425 Campaign Address, Syracuse, N. Y. Republican Party,, so closely tied up with the great electric utility companies of the State, are the ones who dictate to the Party, not only their policies, but also, in many cases, their candidates. You must remember that when this commission which I appointed brings in its reportý, the work is only half done. I know that that commission will do its full duty. L, myself, personally, went up to the St. Lawrence River with them and personally inspected the sites on which we all hope the State will soon erect its huge power structures. But when that work is done by the commission, before anything further can be done, the Legislature of the State of New York and the Governor must approve. I cannot believe and I am sure that the voters of the State will not believe that a Republican Legislature and a Republican Governor will look so kindly upon this plan of public development against which they have for so many years and through so many administrations fought and protested. I cannot believe, especially in view of the language of the Republican platform this year, that they will not do all in their power to hamper and prevent and delay any form of public development for the benefit of the people. It would be only common sense on the part of the people to entrust the development of that plan and the carrying out of those policies to the party which., for so many years, has struggled and fought for its initiation. You can, each one of you, do your share on election day toward the realization of that theory of development which has so long actuated and formed intelligent public opinion in the State. Some Republican statesmen and party leaders are still renewing the old objection that this plan is putting the State into business. Nothing could be further from the truth.. 0. Once the power is developed, and is ready for sale, then the State is in a position to dictate the price at which it can be delivered to the ultimate consumer. We have no desire to infringe upon the legitimate reasonable profits of any investor in public utility stocks. He is entitled to a fair return on his investment.

Page  426 Campaign Address, Albany, N. Y. That is the whole story, and let us once and for all stop talking about whether the State should be put into business or not. The important duty of every citizen of the State - lawyers, business men, the press, the agricultural interests, and the average "icman in the street" - is from now on to work whole-heartedly for the carrying out of the proposed policy and the plan which, I am confident., will result therefrom. I am confident that the great majority of citizens of the State want to see something done and believe that we must work out a State agency method of development of our great natural electrical resources in such a way that the control of these resources will never pass from the actual possession of the State itself. 9 1 (IICampaign Address (Excerpts), Albany, N. Y. October 24, 1930 (Regulation of utilities.) THERE is another great social reform which the present Democratic- Administration in Albany is attempting to accomplish, and which is now in the midst of the same hindering and hamstringing on the part of the Republican legislative leaders. I refer to the proper regulation of public utility companies. These companies, as you know, furnish us electric light, gas light, transportation and telephone service. Their activities must,, therefore, necessarily be bound up with the intimate lives of every one of us, the home lives of our families. Every time we push an electric button which turns on our electric light, every time we lift up the telephone receiver, every time we get on the street car, every time we light our gas stove to boil some water or cook a meal, we are dealing with a public utility company. Far back in 1907 during the Governorship of Charles E. Hughes, it became apparent that some form of protection must A4Of

Page  427 Campaign Address, Albany, N. Y. be given to the people who use these various services. This protection was deemed to be necessary in order to protect us from exorbitant rates and to compel the companies to give us decent service, and it was directly in line with principle dating back hundreds of years, that Government has the right and the duty to supervise and regulate these public utility services. Since that time, however, two important things have been happening which have forcibly brought to the public mind the necessity of reform. The first is that in recent years the Public Service Commission itself has not been performing its original role of a militant protector of public rights. It is contenting itself with acting merely as an occasional judge between the utility companies on the one side and the consumer on the other. That is not the role that I want to see it fill. It should rather be an ever-watchful protector against exorbitant rates and improper service. It should, more than that, ever be on the lookout so that it, itself, can initiate proceedings to reduce rates if they are too high, or to compel fair service. The reason for this gradual letting down in the functions of the Public Service Commission has been that the Legislature, instead of allowing the Public Service Commission to function as a commission of five men, had so written the law that it was completely under the dominance of whoever happened to be chairman of the commission. Under the leadership of that chairman, the legitimate functions of the Public Service Commission were completely obscured. It was not until the chairman offered me his resignation because of his inability and unwillingness to go along with my ideas of proper public utility regulation that I was able to obtain for the leadership of that commission a man who, by training and instinct, was sympathetic with the proper functioning of this regulatory body. You all recall the famous New York Telephone case of last winter. You all recall how after ten years of battle in the courts, and after taking 63,000 pages' of testimony, and after examining 4,300 exhibits, the Telephone Company was given permission by the Federal Courts to raise its rates in New York City. You all 4a27 &

Page  428 Campaign Address, Albany, N. Y. recall that immediately upon learning of this, I suggested that the Public Service Commission take immediate steps to protect the people's interest in the matter of telephone rates. You all recall that the chairman of the Public Service Commission at that time resented what he termed my interference in the judicial processes of the Public Service Commission, but still I sent the letter, and still I insisted that the Public Service Commission go through with it. Shortly thereafter this chairman resigned and I appointed the present chairman, Mr. Maltbie. Already, in the few months since his appointment., there has been an enormous improvement in the activity of the Public Service Commission. Complaints are being immediately investigated and proceedings are being vigorously followed up looking toward cheaper rates for all kinds of public utility services. Take two practical examples under Chairman Maltbie's leadership.: the rates asked by the Telephone Company were drastically reduced this spring, and only yesterday a further reduction was ordered by the Public Service Commission in the long-distance telephone rates. More and more people of the State are receiving the proper kind of attention from the Public Service Commission. I know that under the present leadership the commission will measure up aggressively to the standards originally expected of it. But there is a deeper reason for the breakdown in this regulation of public utilities. Ever since the Public Service Commissions were initiated in this State and in other States, there has grown up a body of court-made law. This is not statute law, mind you, which is passed by any Legislature, but law built up by court decisions in the rate cases. The most important of these decisions are centered around the question of value. This matter is, of course, an extremely technical and complicated one. For that reason I suggested very soon after my arrival at Albany that the Legislature appoint a non-partisan commission to investigate the whole subject, and to revise the Public Service Commission Law so that legislation could be enacted to prevent

Page  429 Campaign Address, Albany, N. Y. this court-made law from continuing to force upon our people exorbitant rates for their daily needs. I had hoped that the Legislature would authorize the appointment of a really nonpartisan commission, consisting of a small group of experts to work the thing out along scientific and technical lines. That was too much to expect. The Legislature refused. Instead, it followed its usual policy by creating a commission of nine men, of whom they were to appoint six, and I was to name three. Of course, the result was there were six good Republican legislators, and three appointees by me, a Democrat, a Republican and an Independent. There was the difference in the point of view. The Republican Legislature put on six Republican politicians who knew as much about utilities as my granddaughter does. My point of view was a little different. I declined to take the political faith of my appointees into consideration at all. What I sought and what I got was three experts in public utility and social service problems. Now this commission brought in a report, a very interesting report, and one which will form the basis for legislation for many years to come, not only in this State, but in other States as well. The report was divided into two parts. One was a majority report signed by the six Republican leaders of the Legislature, and the other was the minority report signed by my three appointees. I need hardly point out that the counsel to the commission was a very good Republican in good Republican standing. The report of the minority of the Commission, my appointees, went to the very root and essence of the problem. They pointed out that the source of all the difficulty of rate-fixing was this question of value, and they proceeded to point out the remedies to meet the situation. The. Republican, or majority report, while admitting that the basis of the trouble was this question of valuation, was afraid to go to the real root of the difficulty in order to meet the question. Instead, they recommended some very nice innocuous measures, which would have permitted the utility companies, if they wanted to, to submit themselves to various valuation proceedings in order 429

Page  430 Campaign Address, Albany, N. Y. to fix their value. Mind you, they did not say that the utility companies would have to do it, but that they could do it, if they wanted to, for a period of ten years. The minority proposal, however, said that the public utilities of the State would have to submit themselves to a complete revaluation of their property so as to fix the value and that from then on, their values would have to depend upon the real investment by the utility company and not upon any subsequent fictitious value. It is needless to say that the legislation proposed by the minority received scant attention from the Republican majority, and no consideration at all. Instead, the Republican Party introduced a series of bills carrying out the Republican report. Most of these bills were unimportant and really merited very little attention. I signed them, pointing out that while they did no good, they did no harm. When it came to the real questions, however, which went to the meat of the matter, the bills passed by the Republican leaders were nothing more than a joke. When they were first introduced, as weak and as ineffective as they were, they immediately aroused the opposition of all the utility companies. They came flocking to Albany. Legislative representatives of gas companies, electric companies, and the telephone companies began swarming through the corridors of the capitol, and into the committee rooms of the Legislature. This would never do. These vast utility combinations, which for years had furnished the sinews of Republican political campaigns in the form of campaign contributions, were going to be subjected to a little regulation, even though it would be absolutely ineffective adequately to protect the rights of the people. Public hearing after public hearing was held, and I am sure that there were many private hearings held about which the public heard nothing. Pretty soon, amendments began to be introduced, and more amendments and more amendments, and before you knew it, these bills had been so amended that the introducer of two of them refused to vote for them himself on the ground

Page  431 Campaign Address, Albany, N. Y. that they had been so often amended that he did not recognize his own bills. It is an open secret, for example., that the valuation bill and the so-called contract bill had struck a snag in the Senate so severe that although they had been amended and amended to meet the wishes of the utility companies, they still were not going to pass because one utility company in the Western part of the State was opposed to them, and every member of the Assembly from that county had been told to vote against them. It became a source of considerable amusement that Senator Knight., the czar of the Senate, who had backed these bills, could not even get them passed. He -could not muster the necessary votes in the Senate and he absolutely refused to let the Senate adjourn unless it would do something about them. Finally, on the last day, the bills were further emasculated and amended so as to meet the wishes of this utility company, and were rushed through the Legislature in typewritten form so that not one of the Republicans in the Senate who voted for them., except Senator Knight himself., knew what was in the bills. These two bills were passed, not with any intention of their becoming law, because the leaders knew that I could not and would not sign them. These bills were not passed on any recommendation either from the majority or minority members of the commission. They did nothing to meet the problem. They were absolutely meaningless. They tended to perpetuate a system of regulation which did not regulate; and they were nothing more or less than a cheap and inexcusable fraud on the public. I do not feel discouraged at the failure of the last Legislature to adopt these measures of regulation.... Of course., your cooperation and assistance are needed. They are needed not only next year; they are needed now. You and I know that the election of a Republican Governor and a Republican Legislature means the end of efforts at regulation of public utilities. We know who the leaders of the Republican Party are. We know their attitude on the public utility question. We know 4391

Page  432 Campaign Address,, New York City how little they will be interested in fair rates for the consumer., and how much they will be interested in large profits for their utility companies. The Republican campaigners so far have said very little indeed about regulation of utilities. They have tried to keep it in the background as far as possible, but I have an everlasting confidence in the ultimate force of public opinion. I have everlasting confidence that the people of the State can and will see to it that their rights are ultimately protected, and that this great social question of utility regulation will ultimately be solved in the interest of the people themselves. 9 2 ( Campaign Address (Excerpts), New York City. November 1, 1930 (National Republican interference in State campaign - Corruption in Newv York City.) F OR two weeks as candidate for reelection to the Governorship of New York, I have discussed fully, without hate or passion, but with truth and frankness, the issues., the many great issues of this State campaign. I have told the voters throughout the State the history of the Government of the State during these past two years, a history of which all voters., regardless of party., have a right to be proud. Further, I have set forth fully the needs of the State for the two years to come, the proposals of my associates and myself for the continuation of orderly and progressive government based on honesty, on efficient administration, on humanity and on law. Our campaign, as the people of this State know, has not been founded on falsification of the record, and it has not been founded on slander or on promises which cannot be fulfilled. It has., on the other hand, been based on issues which affect the daily lives of the individual men, women and children in every home of the State, on issues where the State Government comes into direct contact with their work and their play, with their living conditions, with their health and their happiness. 43^2

Page  433 Campaign Address, New York City As opposed to this, there stands out a definite and undeniable fact which as the campaign has gone on is being realized more and more by every voter in the State. That fact is that the candidates of the Republican Party have refused to discuss these issues. They have maintained a complete silence on all those many questions which affect all of the people of this State. They have failed even to set forth a constructive program of any kind for the governing of the State during the next two years. Their campaign, on the -other hand, has been based, first, last and all the time, on a falsification of the record and on attacks instigated not by any desire for good government or for progressive legislation or administration, but solely on ambition for office. To those who believe that candidates should frankly discuss real issues and honestly reveal their views on the fundamental questions of the day, this action of the Republicans has been the most discouraging that we have ever known. But there was a reason for this so far as Republican leadership was concerned. Before this campaign started, obviously it was necessary for the Republican leaders to find an issue on which to conduct it. Unquestionably they examined carefully the whole range of public subjects to find such an issue. First, there was water power - the insistent and overwhelming demand that the State should develop the St. Lawrence for the benefit of the consumers at the lowest possible cost. But that was an impossible issue for the Republicans, because year after year they had consistently stood for the virtual gift of this water power to private corporate interests well known to be in close association with the Republican leadership itself. Then there was labor legislation. They could not use that because year after year they had blocked or weakened every important measure for the protection of the working people of the State, and further because organized labor itself had declared in no uncertain terms in favor of the reelection of the Democratic candidates. Then there was the necessity for new prisons and new prison 43

Page  434 Campaign Address, New York City methods. They could not use that because the record of the Republican Legislature for fifty years past - a record of neglect and indifference toward prison reform- would make that issue impossible. Then there was Prohibition. They could not use that because they themselves were split wide apart in the very leadership of their party on that question. Then there was social welfare. They could not use that for the very obvious reason that it was the Democratic Party and its leaders who for a generation past had initiated every great social reform in this State from workmen's compensation and the fortyeight-hour law down to old-age pensions and the building up of the new parole system, and the securing of new buildings and equipment for the unfortunate wards of the State. Then there were farm relief and rural tax relief. They could not touch those because all of the great measures for the relief of the agricultural communities, which have become law during these past two years, were first initiated and first pushed by the Governor of the State himself. Then there were the economic conditions under which the people of the State now find themselves. They could not touch that because that came too close home to the Federal Administration in Washington. Then there were the parks and parkways - that great program initiated by Governor Smith covering the State like a network. They could not touch that because they had blocked this program on every possible occasion, and furthermore because they remembered that their own leaders on Long Island sought to keep the hundreds of thousands of men, women and children in this city from enjoying the great gifts which nature had bestowed on the shores of Long Island. There were other issues. But when the Republican leaders examined them and realized their record on those issues they knew that their only hope was to distract the attention of the people of this State from these real issues. They, therefore, decided to adopt, and have steadfastly adhered 434

Page  435 Campaign Address, New York City to a policy of misrepresenting and distorting a local situation in the City of New York and from the start of the campaign they have refused absolutely to; talk about any of the State issues whatsoever. And pursuing misrepresentation, without any sense of justice or propriety, the Republican leaders have made every effort to convince the people of this State and the people of this country that our judiciary is corrupt and judges are unworthy to hold their high offices. No more reprehensible or cowardly act has ever been perpetrated in a campaign in this country than this deliberate attempt to bring dishonor on all - every one - of the members of our judiciary and their families and to break down the confidence of the public in this bulwark of our civilization. I say each and every member of the judiciary from the highest court to the lowest, because the Republican campaign without question has been aimed at making unthinking people believe that all judges should be brought publicly and with a blare of trumpets before a grand jury and subjected to the public task of proving they are honest. The history of the judiciary in this State needs no defense. Men of unquestioned standing, integrity and ability, many of them at a personal financial sacrifice to themselves and their families, have devoted and are devoting their lives to the great cause of justice. I refuse to believe, and further than that I deny, that our judiciary under the leadership and guidance of such men as Chief judge Cardozo and Presiding judges Dowling and Lazansky is saturated with corruption. But., after continuing this campa 'ign of calumny against the judiciary, coupled with utter silence on actual State issues for two whole weeks, the Republican leaders began to realize that the people of the City and the State were beginning to resent this hypocrisy as an insult to their intelligence, and that unless volume and tone could be added to their position they were utterly and hopelessly lost. The whole structure built on a false' foundation was bound to crumble unless artificial support for it could be found. So the Republican leaders in their desperation turned to Washington. What happened? The people of this State have been witnessing

Page  436 Campaign Address, New York City a spectacle so novel that its significance has not yet been fully grasped. The Republican national Administration at Washington, suddenly solicitous for our welfare, presumed to send into this State campaign officers of the Cabinet itself to instruct us how to manage our State affairs. These gentlemen have been here and they have instructed us and lectured us on how we should handle our local affairs in this great State. Who are they? First of all came the Secretary of War himself; then came the Secretary of State., the chief of the President's Cabinet, and tonight you are receiving further instruction from the Treasury Department in the person of its Under Secretary. I make no personal attack on these three eminent gentlemen. I know them well. They are men of the finest character and I do not dispute their personal fitness to hold the great offices they do., but I do say that they have been misled. I do say that they have shocked the conscience of the fair-minded and thoughtful people of this State by lending the prestige of their great national offices to such a campaign as this and they have even been cajoled into making a personal attack on me. These same gentlemen and the Republican Administration in Washington sponsoring it and the Republican National Committee financing it, and the New York State leaders and candidates themselves, have persistently cried from the housetops that national issues have no place in this campaign. This is an amazing assertion in view of the fact that for at least the last five State campaigns the Republican candidates for Governor have consistently talked about nothing else but national issues, chiefly the then socalled national prosperity. We in this State in every city and on every farm know the high impropriety of interference by the Federal Government in the purely local affairs of any State and we are fully conscious of the effective manner in which the people of this great State will at the polls show their resentment against such conduct. Before we look into the soundness of the instructions given to the people of this State by these representatives at Washington we have a right to demand that they show their credentials. Of these 436 r

Page  437 Campaign Address., Newv York City three estimable gentlemen, one comes from that great State of Oklahoma which we all respect. He has never lived in New York St ate; he knows nothing of the problems of New York State; he knows nothing of the situation in New York City; he knows. nothing of the requirements and necessities of the twelve million people of this State. Whatever information he has, has been given to him obviously by the members of his own party. It can hardly be said that he has been impartially informed on our affairs. And yet he comes to us presumably only by virtue of his great office. Well may the people of New York State resent this, as would the people of Oklahoma if the tables were turned. The other two gentlemen of this triumvirate, the Secretary of State and the Under Secretary of the Treasury, are both citizens of this State. The credentials that they present to the people of the State as authorizing them to give instructions are the same in both cases. Both of them have run. for Governor in campaigns based largely upon the same kind of tactics as are being employed in this campaign. Both of them were defeated at the polls by the people of this State. The people did not believe in them or in their issues then, and they will not believe in them or in their issues now. The people of this State who repudiated them are the best judges of whether or not any man is fit to be Governor. And now having examined the credentials of these gentlemen from Washington who have been telling us how to run our affairs of State., let us examine into the soundness of the instructions which they have given us. The substance of their instructions to us is this: That the only issue in this campaign is judges in New York City, and nothing else counts. They tell the i 2,ooo,ooo people in this State, whether they are so-called it'wets"~ or ''drys,'' who are sincerely interested in the important question of prohibition., and who are seeking a sound solution of the tremendous problem raised by it and who are endeavoring to rid themselves of the' crime, violence and corruption bred by it., that that does not count. But I specifically call the attention of the people to the all-important fact that these

Page  438 Campaign Address, New York City instructors woefully failed to tell the people of this State where they themselves stand on the prohibition issue. Do they believe in Mr. Hoover's position, or do they stand upon the straddle of the Republican Party in this State? Why is it that they do not dare answer? They tell the 12,ooo000,000ooo people of this State interested in the speedy and proper development of its great water power resources to provide cheap electricity for the homes of the State and in keeping them from the hands of private corporations, that that does not count. They tell the 12,000,000ooo people of this State who are anxious to protect its aged dependent citizens against the wants and miseries of old age, so that the State may help them to spend their last years in comfort, that that does not count. They tell the 12,ooo000,000ooo people of this State interested in its problems of taxation, and desiring that its entire system be revised in order more equitably to distribute its burdens, that that does not count. They tell the 12,ooo000,000ooo people of this State who look forward to a scientific study of the prisons of this State to provide a comprehensive plan and policy for prison construction as well as for the proper treatment, punishment, reformation, segregation and labor of prisoners, that that does not count. They tell the 12,ooo000,000ooo people of this State who have seen a complete revision of our parole system and the establishment of a modern enlightened system of parole to take care of the 92 percent of the prisoners of our State who return to private life that that does not count. They tell the 12,ooo000,000ooo people of this State who are anxious to enlarge and modernize our State hospitals and secure new buildings and equipment for the unfortunate wards of the State that that does not count. They tell the 12,ooo,ooo people of this State who are anxious to protect its milk and cream supply and to prevent the importation of impure milk and cream from without the State, that that does not count. 438

Page  439 Campaign Address, New York City They tell the millions of men, women and children of this State who labor for their daily bread that all of the important problems of adequate labor and social legislation, such as the abolition of ex parte injunctions in strikes, preference on employment in State and local public works for New York citizens, an eight-hour day and prevailing rate of wage on grade-crossing eliminations, advisory minimum wage boards, elimination of unhealthy living conditions in congested areas, the establishment of the principle that the labor of a human being is not a commodity, adequate appropriations to enforce the labor law and the workmen's compensation law, the increasing of compensation to victims of industrial accidents and their dependents, dispatch in the disposal and payment of compensation claims., the extension of workmen's compensation to include occupational diseases, the adequate regulation by the State of fee-charging employment agencies., the prevention of importation of prison-made goods from other States, that all of these matters affecting the daily lives of every laboring man, woman and child in this State do not count. They tell the 1 2,ooo,ooo people of this State who have enjoyed the vast system of parks and parkways inaugurated by Governor Smith and pushed and forwarded in every way by me, who look forward to the completion of the program so that still greater areas through the State from Montauk Point to Niagara may be made available for their health, recreation and enjoyment, that this does not count. They tell the millions of farmers and other residents of rural communities in this State who are beginning to reap the benefits of that vast program initiated by me of constructive farm and rural tax relief., resulting in better roads, better schools and lower taxes for the rural population of the State and more adequate funds for agricultural surveys and experiment - that those things do not count. And on this question at least, everyone who knows of the complete failure of the Republican Administration in Washington to carry out any form of adequate farm relief, admits they certainly speak with authority. Having examined the credentials of these Cabinet officers and 439 e

Page  440 Campaign Address., Newv York City the nature of their instructions to us., let us see whether they are qualified by success in Washington to instruct the voters in New York. They and their party, this present national Administration; came before this State two years ago soliciting the votes of its people on representations, promises and prophesies. They represented themselves as the creators of the prosperity of the country. They were the originators of sound business; they were its protectors. Under them prosperity had always prevailed and only under them could prosperity continue. Poverty was on its way to be abolished. There is no need for me to demonstrate to you how false were those representations, those promises and those prophecies. There is no need for me to point out to you what has been unfortunately experienced by almost every man., woman and child in the Nation. I say to these gentlemen: We shall be grateful if you will return to your posts in Washington, and bend your efforts and spend your time solving the problems which the whole Nation is bearing under your Administration. Rest assured that we of the Empire State can and will take care of ourselves and our problems. And so, with whatever comfort they can find in this Federal support, and persisting in their original intention., the Republican leaders have to this very last day of the campaign refused to talk about the real issues. Instead they have talked only of judges in New York City. Tonight, therefore., I shall depart from discussing those real issues of the campaign, in order again to repeat to the people of the State my record in this local situation and make that record and my policy clear. During the last session of the Legislature, Republican leaders having in mind the coming campaign, and realizing that they would have no issue in it, considered the proposition of trying to manufacture publicity by an investigation of New York City. They looked it over and it did not seem to be a very happy thought, so they fell back on one of their most ancient practices of "passing the buck" to the Governor, and trying to put the Governor "in a hole." They went so far as to pass a bill directing me 440 1 -

Page  441 Campaign Address, New York City' to institute an investigation in New York City; and although I asked them, they refused or were unable to give me any grounds or reasons for such an investigation. I sent the bill right back to them and told them that if they wanted such an investigation in New York City, they were free to go ahead and make one without even submitting the question to me. I pointed out to them that the Legislature not only had full power but was the only one charged with the duty of making any such investigation. They refused to do it. They did not have the courage to do it. Some months later, my attention was called to evidence which had been presented to a Grand jury of the County of New York, alleging that a magistrate in the City of New York, had paid a district leader for his appointment. The Grand jury had failed to indict those who were said to be implicated. Immediately within twenty-four hours I demanded a copy of the minutes. I read them. I deemed that it was appropriate that there should be further investigation. I could have suggested or directed the submission of the matter to another Grand jury by the District Attorney. I elected, however, for the purpose of removing the matter from all possible criticism, to supersede the District Attorney and place it in the hands of the Republican Attorney General with a Republican judge. I did this within twenty-four hours of receiving the minutes. I foresaw the possibility that in a gubernatorial campaign which was soon to start, a Republican Attorney General who was indeed himself a leading candidate, might use this instrumentality in order to mislead the public. I foresaw that possibility but I did not hesitate to discharge my duty. I never have and I never will, so long as there is any duty to perform. The power of that Grand jury which I called, is absolutely unlimited to investigate any crime in the County of New York. The Court of Appeals has said so, and these gentlemen from Washington know so. Regardless of all misrepresentations to the contrary, I have never refused to enlarge the powers of the Grand jury because the Governor of the State has no power either to enlarge those powers or curtail them. But I wish again to point out what Republican candidates and Republican campaign orators and a 441

Page  442 Campaign Address, New York City small portion of the New York press have sought to obscure, that I, a Democratic Governor on the eve of a campaign for reelection, sent into a Democratic county, a Republican Attorney General and a Republican judge with an extraordinary Grand Jury. That investigation was ordered and directed by me. The next step related to specific abuses in the magistrates courts and in their procedure. I immediately called upon the Appellate Division of the Supreme Court to make a searching investigation of them all. The Appellate Division is the body charged by law with that duty and in accordance with that law I called upon it to perform it. That investigation has been put in the hands of Judge Seabury, a former Judge of the Court of Appeals. I defy anyone even to intimate that that investigation will not be honest, thorough and searching; and I challenge the untruthful assertion made by these gentlemen from Washington that such an investigation is futile. Let them have no doubt that if the Appellate Division discovers corruption in the magistrates courts the Appellate Division will have it punished, no matter where they find it. Later on, I learned that a Judge had refused to waive immunity before the Ward Grand Jury. In order that I might perform my duty properly I immediately requested that the evidence in this case be sent to me so that the matter could be presented to the Senate of this State if the situation warranted action. Only the Senate of the State could act. I cannot remove a judge or compel him to resign, and the Republican leaders despite their hypocrisy know it. The public knows that the Attorney General advised against my receiving that evidence, and I was denied access to it. Without such evidence I can go no further. Whenever I was in a position to exercise my powers as Governor of this State properly and whenever I believed that those powers should be exercised, I had no hesitation in performing the duties of my office. If there exists evidence before the Ward Grand Jury to warrant my exercising any of the powers of my office, I hear about it only through the newspapers. It has never been presented to me. It may be that there exists such evidence as the special Attorney General 442

Page  443 Campaign Address, New York City informed the press a few days ago, but if it does exist I have no knowledge of it. No word has come to the Governor about it. That latest statement from the Republican Attorney General is only further proof of what the people of this State have long suspected but now know--that the Attorney General is using his office in every way possible in attempting to pervert the function of the Grand Jury itself, solely for the political benefit of Republican candidates. The Republican candidates and a small section of the local press have sought a definite political object - to make the people of this city believe: (1) That the greater part of the 220 judges in this city are corrupt; (2) that as a result the judiciary as a whole is no longer worthy of the confidence of the people; (3) that neither I nor the Democratic Party in city or State would lift a finger to restore confidence in the courts and punish the guilty. I, as a citizen of the State and as Governor, resent this campaign, as every person in this State who knows me, and who believes in honest and decent government, resents it. I, and the members of my Administration, do not yield place to any Republican candidate or editor in abhorrence of a corrupt judiciary. We do not yield place to anyone in indignation against any holder of public office who is recreant to his trust. We do not yield place to anyone in the sincere and honest desire to punish those judges who have or who may prostitute their positions. If there are corrupt judges still sitting in our courts they shall be removed. They shall be removed by constitutional means, not by inquisition; not by trial in the press, but by trial as provided by law. If there is corruption in our courts I will use every rightful power of the office of Governor to drive it out, and I will do this regardless of whether it affects or may affect any Democratic or any Republican organization in any one of the five counties of New York City, or in any one of the fifty-seven other counties of the State. That is clear. That is unequivocal. That is simple honesty. That is justice. That is American. That is right. Now we have come to the close of the campaign. I ask the elec443

Page  444 Campaign Address, New York City torate of the State of New York for their support. I ask this as a rebuke to those Republican national and State leaders who, substituting false charges and deliberate misrepresentation, have had the cowardice to ignore the great problems and issues before the whole State. I ask this as an expression of confidence in my Administration, as an expression of confidence in the record of these past two years, and of the need, during the next two years, for a continuance of forward-looking, human and honest administration of the affairs of our State. I ask this of the dwellers in this great metropolis, of the people of the other great cities, of the men and women in the villages and on the farms. I ask this of the voters of all parties. I ask it in the name of good government. Cheerfully and confidently I abide the result. 444

Page  445 XVII Unemployment, Unemployment Relief, and Unemployment Insurance INTRODUCTORY NOTE: AFTER THE crash of 1929, and indeed for some time before that, the State of New York in common with the other States faced the problem of a growing number of unemployed. The Federal Government had adopted the policy of doing very little for the relief of distress among the unemployed either by providing food and shelter, or by furnishing work. Accordingly, the State was compelled to attempt to do the task with such assistance as it could obtain from local government which was already overburdened by taxes and by debt. The documents included in this chapter show in detail what was done by the State of New York during my Administration to meet the problem. As early as May, 1930, we began to formulate plans for local relief of distress (Public Papers, 1930., page 537) and in November, 1930, we took steps to institute and stimulate public works with a view toward providing employment during the winter of 1930 (Public Papers, 1930, page 672) See also Items 70, 88, 17 on page 103, i8 on page 115. In 1931 and again in 1 932 I recommended to the Legislature that steps be taken to institute a system of unemployment insurance (see Items 96 and 99 of this volume). As the distress among the unemployed increased, and as the burden on local charity and local government became greater than they could carry, and as the Federal Government continued to refuse to assume any responsibility at all for any relief program, I determined to take the "bull by the horns" and embark 445

Page  446 Note: Unemployment upon a State program of relief. I decided to do all I could to carry out what I conceived to be the responsibility of Government: that no one within its jurisdiction, willing but unable to find work, should go without the necessities of life. Accordingly, during an extraordinary session of the State Legislature, on August 28, 1931 (see Item 97 of this volume), I recommended the creation of a Temporary Emergency Relief Administration and a system of State-financed unemployment relief. The sum of $20,000,000 was appropriated for this purpose. This was the first practical recognition by any State in the United States of a definite responsibility toward the relief of unemployment distress. The other efforts of my Administration to meet the problem are set forth in the papers in this chapter. In addition, reference is made to the following, not included for lack of space: Address before welfare workers, October 29, 193 1. Public Papers, 193 1, page 776; Statement on relief, January 1., 1932; Statement on report of Interstate Commission on Unemployment, February 15, 1932 (see Item 99, this volume); Message to Legislature re relief, March 1, 1932; Radio Address, Albany, New York. March 16, 1932; Address, Catholic Charities Luncheon, New York City, April 9, 1932. During the i1932 campaign for the Presidency, the question was discussed by me in my speeches printed as Items 13 1, on page 653, 143, and 148 of this volume. 446

Page  447 9 3 (A Statement on Unemployment, and the Appointment of a Committee to Suggest a Plan for Stabilization of Industry. March 29, 1930 IRECENTLY addressed a communication to Chambers of Commerce and labor leaders all over the State with reference to unemployment conditions. Responses have been received from over 2oo Chambers of Commerce and over 50 labor bodies..*. In general the greatest source of hope for the future is reported to be that some kind of public works is either about to be undertaken or now under way. Roads, highways,. water works, grade crossing eliminations, school buildings, post office buildings, city buildings, prison and jail buildings, park developments are all mentioned as affording relief from local situations which would otherwise be even more difficult. Many letters urge a larger and speedier program of public works, both local and State..00 There is, of course, likely to be some easing of the unemployment situation with the coming of spring - the opening of more public works, the development of agriculture, etc. This will not be sufficient to restore the normal employment so necessary for stable business. Moreover, if we do not make plans now the slump of the autumn and winter of 1930-31 will be more distressing than ever., coming after this year's crisis with its call on savings, reserves, etc. I am convinced that concerted action of all elements in the community can do much to remedy existing unemployment and prevent further depression. Action must be taken with full knowledge of the actual facts, but without hysteria or exaggeration. Political stress must play no part in a program which to be sound must be both scientific and dispassionate. We appear to have an accumulation of unemployment due to three contributing factors: (1) seasonal fluctuations which have become chronic in some industries; (2) technological unemployment or the displacement of men by labor-saving machinery and methods; this has been greatly accelerated in recent years in New York State and since it is indirectly correlated with cheap mass 44 17

Page  448 A Statement on Unemployment, 1930 production we must expect its continuance; (3) the depression due to the business cycle which is an economic phenomenon recurring with some regularity throughout the Nation as well as in this State.... The situation is serious and the time has come for us to face this unpleasant fact as dispassionately and constructively as a scientist faces a test tube of deadly germs, intending first to understand the nature, the cause and the effect, and finally the method of overcoming and the technique of preventing its ravages. Although serious, local unemployment conditions are spotty, some cities are almost normal, others very bad, still others merely dull. Unemployment is a problem for the entire community. It is a major social tragedy for the individual who is denied the opportunity to work and earn, but it does not stop there, and if not soon corrected will have a long-time depressive effect on business and trade in the State. The prosperity of New York State depends upon the prosperity and the spending ability of its own and the Nation's wage earners. As the leading industrial State, it is of first importance to maintain and develop the wage-earner market. A few years ago this would have seemed a wholly impossible task. Today, experiments by industrialists and analysis by economists have established a number of successful methods. Some of these methods are in practice today in industries in New York State, and some are followed in cities as a result of planning by Chambers of Commerce and leading citizens. All of these offer suggestions which can well be studied by others. Two classes of action are indicated: first, for the relief of the emergency locally; second, for the prevention of future crises. With respect to the present emergency I strongly urge upon mayors, boards of supervisors and public officials in every community in this State the immediate adoption of the following program: i. The collection locally by responsible agents of complete 448

Page  449 A Statement on Unemployment,, 193 0 local figures on the number of unemployed in each city and town; the Department of Labor is prepared to suggest forms and methods for such enumeration.,2. The cooperative organization and supervision of public and private philanthropic activities for the giving of such unemployment relief as is locally needed under joint control. 3. The active stimulation of small-job campaigns in every city and town in the State of New York, so that the modicum of unemployment relief can be furnished locally. 4. The establishment of local free employment clearing houses under public auspices in every city and town linked up with the State public employment service, where possible. 5. The starting up of local public works immediately. Road building,. sanitation systems, water works, building and building repair are many instances in the control of local officials, and the boards of supervisors should make every effort to begin work on these items promptly. In addition, the local Chambers of Commerce should appoint committees and plan concretely local means for stimulating trade and industry, at the same time discussing ways and means for the future stabilization of industry in the local communities. Chambers of Commerce must recognize that the prosperity of each town in this State is dependent upon having all of the people in the town at work steadily and thus able with their purchases to keep trade alive. With regard to efforts to prevent or at least to minimize future unemployment crises, much of the planning must necessarily be done by the industrialists of the State.... I count on the industrialists. of this State to strive to overcome recurring unemployment in their industries with the same good will as they have overcome so many other adverse conditions, such as industrial accidents, industrial diseases, child labor, long hours, etc. Effort against unemployment made in the same educational and helpful terms as the campaign against industrial accidents cannot help producing results. In order that such efforts may 449&

Page  450 Committee on Stabilization of Industry Commended be organized and sustained until results are produced, I am appointing a special committee of business men and labor representatives, and asking this committee to lay before the employers and the workers of this State every worth-while and significant practice for the stabilization of employment which has come within their range of knowledge and to work out with the business men of the State such practical methods as can be devised for the future control of unemployment. I wish to stress the fact that in appointing this Committee I am looking forward to a long-time program for industrial stabilization and prevention of unemployment. We do not expect miracles. We do expect to assist the employers of this State in a gradual progress toward stabilization based on authentic American business experience and arising out of and adapted to their own local industrial problem, and on such methods as their goodwill and sound business judgment may develop. Surely, both for humanitarian and business reasons, their effort, difficult but urgently necessary, is one in which the Governor of the State may confidently expect the whole-hearted cooperation of the business community. 94 ({ The Governor Commends the Report of the Committee on Stabilization of Industry. November 15, 1930 ON THURSDAY evening I received a very important report on the possibilities of stabilizing industry for the purpose of prevention of unemployment. This was made by the committee which I appointed in March of this year. This report is very significant and represents an extremely fine piece of work by an efficient body working under considerable pressure in order to make practical suggestions available to the industrialists of this State at a time when the need for an industrial stabilization program is so pressing. I am much gratified that this committee, which has worked 4510A`

Page  451 Committee on Stabilization of Industry Commended hard and earnestly and has carried its own expenses, should have been able to produce something so useful. Its recommendations in this report are definitely those looking toward the long pull for the prevention of future unemployment crises. It was our hope when this committee was appointed that the depression would be short-lived and that we should be spared the emergency of this present winter. Therefore, it was asked to concentrate on the study of preventive measures. Fortunately, the State of New York is much better organized to meet the emergency situation due to the fact that we began a year ago to stimulate organization and public responsibility to meet the situation. In the course of its conferences with different communities and different industries throughout the State it has acquired a very real knowledge of the unemployment situation in different parts of the State. Among its activities has been the successful promotion of local committees in various communities formed for the purpose of dealing with the problems of relief, emergency employment, and stabilization in those communities. The Department of Labor has also been definitely promoting such a program for over a year and as a result there is in every large industrial city in the State, with the exception of one, a local emergency committee. In a number of the smaller communities such committees have also been established through the help and recommendation of the stabilization committee. Because of the success of this activity, and because the present emergency demonstrates the need for a continuing stimulation of local communities to meet their unemployment problem, and also for some central coordinating agency representing the entire State, I am reappointing the stabilization committee, asking it to organize on a more permanent basis and to continue its activities, concentrating for the next few months upon helping communities to devise ways to meet their own problem of unemployment relief and acting as a clearing house and advisory body on all the many plans and schemes which are submitted to State officials having this end in view.

Page  452 Committee on Stabilization of Industry Commended At the beginning of the legislative session I shall request the Legislature to make this committee an official commission and to provide for its expenses, which up until this time have been borne by the individual members of the committee. In. expanding the duties of this committee I am also asking it immediately to make a plan for the establishment of loan funds on a sound and suitable basis, the loan funds to be under local management and direction and used for the purpose of sustaining those whose incomes are greatly reduced or entirely depleted by the unemployment situation. I am convinced that such loan funds can be very successfully and democratically administered if they are set up on a sound basis with the participation of the banking and business interests. In effect this committee will act for the State of New York as an EMERGENCY COMMISSION, to act as the coordinating party for the entire State throughout this winter and until the emergency is abated. The work of the committee will fall under three general heads: a. To coordinate and encourage the additional employment of men and women out of work; b. To encourage the establishment of loan funds for the unemployed; c. To coordinate and prevent duplication in all local public and private housing, clothing and feeding efforts, checking up at the same time in all of the smaller communities of the State so as to initiate relief work for those who need it but who live away from the larger centers of community. efforts. In expanding the duties for this stabilization committee I have acceded to its request for additional membership and especially for membership of persons expert in certain phases of relief work. I am therefore adding to the membership of the committee.... 452

Page  453 A ddress on Unemployment Insurance 9 5 (1Address on Unemployment Insurance. New York City. March 6, 1931 AS MANY of you know I was for years active in the surety branch of the great field of insurance. I am. told that suretyship. is one of the oldest of all forms of business, for on an ancient tile found in the ruins of Babylon is a record of the pledging of property by the Grand-Vizier of a Babylonian King for the due performance of a royal contract by one of the King'Is henchmen. Insurance as a whole is indeed historic - reaching back through hundreds of centuries to, meet a very natural human need for protection against all kinds of unforeseen or unknown contingencies. Life insurance is perhaps one of the younger sisters and yet life insurance today throughout the world has., in its volume of busi-.ness and in the protection which it affords, become the leader of the whole field. What impresses me most is that insurance as a whole is a constantly changing and a constantly growing force in our individual lives and in our business lives. As the world becomes more and more civilized and stabilized we are able to give protection against more and more forms of potential dangers or losses. That is why I have at all times been so ready to go along with new forms of insurance to meet new needs. In other words, I have been a consistent opponent of the school which takes the position that because a new form of risk has never been written before it should not be undertaken in the future. In the various demands which are made by worthy citizens for the protection of business and individuals against new risks, one essential basis for all insurance is often forgotten. I refer to the fundamental principle that insurance must, if it is to survive, be based on human experience. If that fundamental is always kept in mind the stability and the permanence of insurance will be assured and its operations will grow. I take it that from the very first days of life insurance, for in

Page  454 A ddress on Unemployment Insurance stance, the expectation of human life was based on some sort of actuarial tables, no matter how crude these tables may have been in the beginning. As time went on the information concerning human longevity became more accurate and as modern science improved the tables became a true record of the facts. By the same token underwriting, as you gentlemen caill it, has progressed with modern science, recognizing, for instance, as each year goes by that the expectancy of life in this country has appreciably increased. With this recognition has come a lowering of the cost to the individual who seeks to be insured. It is this reduction of the problem of risk to a business basis which has given the public as a whole the confidence which they now have in properly managed insurance. And this confidence has been further strengthened by the thought that mere private gain is no longer the goal of those who conduct the business. In line with the thought that the conduct of the insurance business is keeping up with changing conditions, I want to stress one further point. During our own lifetime, we have seen many new forms of insurance, many improvements, many new coverages., and many new methods for the distribution of participating profits and the payment of losses. In our own lifetime we have seen, for instance, the rise of workmen's compensation to an accepted place in the insurance world. Today we are giving serious thought to still another form of insurable risk - that of providing some form of reserve for individual men and women to be used by them for their maintenance and support in times of involuntary unemployment. Here again, as was the case a quarter of a century ago when workmen's compensation was being considered, there is much unthinking opposition on the principal ground that the proposal is something new. It is not a sound argument to make that a new thing may prove unsound just because it is new. I take it that in studying what is somewhat loosely referred to as unemployment insurance, the insurance world itself will maintain not only an open mind but will also apply the same fundamental principles of experience and potential risk which it has

Page  455 A Commission on Unemployment Insurance applied to the existing forms of insurance. It is of the utmost importance that unemployment insurance, like the other forms, be based on sound actuarial tables. This is the fundamental which will prevent a mere dole or gift on the part of either private agencies or Governments themselves. The other factors entering into unemployment insurance are more methods of administration than matters of fundamentals. Whether we shall have group insurance or general insurance, whether the employer or the employee shall both contribute or only one, what part the State will play in the picture, all of these can, I am very certain, be worked out in the days to come. I use this example of unemployment insurance for two reasons: First, because I am certain in my own mind that what is now an experiment affecting about one hundred thousand workers in this country will become the universal practice throughout the country during the coming generation; and second, because, I am sure, that the splendid body of men and women who are engaged in this great business of insurance, and who are so successfully solving its problems new and old, will take on this new necessity just as they have taken on other necessities in the past. In so doing you will, I am sure, apply the sound principles of experience and good business which have made life insurance so successful and so necessary to all of us. 96 (A Recommendation for a Commission to Investigate Unemployment Insurance. March 25,1931 To the Legislature: IT WOULD be in the public interest if your Honorable Bodies would, before adjournment, enact legislation affecting two important phases of the unemployment problem. The first relates to the present emergency. I sincerely recommend the passage of legislation, which is being introduced in both houses, making an 455

Page  456 A Commission on Unemployment Insurance official commission of the unofficial Committee on Stabilization which I appointed in April, 1930. This committee was created for the purpose of making surveys to obtain accurate data relative to unemployment; stabilization of employment; cooperative organization and supervision of public and private philanthropic activities; active stimulation of small-job campaigns in every ci aty and town in the State; establishment of local free employment clearing houses linked up with the State public employment service; and the encouragement of local public works. This committee has been a volunteer unofficial one and I believe that its work should be continued under State auspices in an official manner., It has rendered a fine and useful service. The second need relates to the broad problem of providing in the future against the results of some new period of economic depression. The serious unemployment situation which has stunned the Nation for the past year and a half has brought to our attention in a most vivid fashion the need for some sort of relief to protect those men and women who are willing to work but who through no fault of their own cannot find employment., This form of relief should not, of course, take the shape of a dole in any respect. The dole method of relief for unemployment is not only repugnant to all sound principles of social economics, but is contrary to every principle of American citizenship and of sound government. American labor seeks no charity, but only a chance to work for its living. The relief which the workers of the State should be able to anticipate, when engulfed in a period of industrial depression, should be one of insurance, to which they themselves have in a large part contributed. Each industry itself should likewise bear a part of the premium for this insurance, and the State, in the interest of its own citizens, and to prevent a recurrence of the widespread hardship of these days, should at the least supervise its operations. Any Nation worthy of the name should aim in normal industrial periods to offer employment to every able-bodied citizen willing to work. An enlightened Government should look further ahead. It should help its citizens insure themselves during good 456 f

Page  457 Relief of the Unemployed times against the evil days of hard times to come. The worker, the industry and the State should all assist in making this insurance possible. The successful experience of several large industrial concerns has shown the wisdom and feasibility of some form of unemployment relief. I strongly recommend that your Honorable Bodies create a commission to investigate this whole subject and report to the Legislature of 1932 a plan for accomplishing some kind of scientific unemployment insurance. As to the nature of the commission, I would suggest that. it be a small commission of experts, to be appointed by the Governor, with two or three members to be appointed by and from the Legislature. I mean no disrespect when I state my belief that a large legislative committee is not the proper way to investigate this kind of subject, which will necessarily entail minute technical and expert consideration of various economic, financial and actuarial problems and material. Bills have been introduced creating a commission which I think has the most advisable form, namely, two legislators and four laymen -one to represent labor, one to represent employers, and the others to represent the general public. I hope that your Honorable Bodies will enact these two recommendations into law. 9 7 I New York State Takes the Lead in the Relief of the Unemployed. A Message Recommending Creation of Relief Adminis Itration. August 28, 1931 To the Legislature (in Extraordinary Session): WHAT is the State? It is the duly constituted representative of an organized society of human beings, created by them for their mutual protection and well-being. "The State" or "The Government" is but the machinery through which such mutual aid and 457 &

Page  458 Relief of the Unemployed protection are achieved. The cave man fought for existence unaided or even opposed by his fellow man, but today the humblest citizen of our State stands protected by all the power and strength of his Government. Our Government is not the master but the creature of the people. The duty of the State toward the citizens is the duty of the servant to its master. The people have created it; the people, by common consent, permit its continual existence. One of these duties of the State is that of caring for those of its citizens who find themselves the victims of such adverse circumstance as makes them unable to obtain even the necessities for mere existence without the aid of others. That responsibility is recognized by every civilized Nation. For example, from the earliest days of our own country the consciousness of the proper relationship between the State and the citizen resulted in the establishment of those often crude and unscientific but wholly necessary institutions known as the county poor houses. In many messages to your Honorable Bodies I have pointed out that this earlier exemplification of the State's responsibility has been sustained and enlarged from year to year as we have grown to a better understanding of government functions. I have mentioned specifically the general agreement of today, that upon the State falls the duty of protecting and sustaining those of its citizens who, through no fault of their own, find themselves in their old age unable to maintain life. But the same rule applies to other conditions. In broad terms I assert that modern society, acting through its Government, owes the definite obligation to prevent the starvation or the dire want of any of its fellow men and women who try to maintain themselves but cannot. 'While it is true that we have hitherto principally considered those who through accident or old age were permanently incapacitated, the same responsibility of the State undoubtedly applies when widespread economic conditions render large numbers of men and women incapable of supporting either themselves or their families because of circumstances beyond their

Page  459 Relief of the Unemployed control which make it impossible for them to find remunerative labor. To these unfortunate citizens aid must be extended by Government, not as a matter of charity, but as a matter of social duty. It is true beyond question that aid must be and will be given in large measure through the agencies of private contributions; and in normal times these contributions should be regarded as sufficient to meet normal conditions. However, even here the appeal is not alone on the basis of charity, but is laid on the foundation of the civic duty of all good citizens. I would not be appearing before you today if these were normal times. When, however, a condition arises which calls for measures of relief over and beyond the ability of private and local assistance to meet - even with the usual aid added by the State - it is time for the State itself to do its additional share. As my constitutional duty to communicate to your Honorable Bodies the condition of the State, I report to you what is a matter of common knowledge - that the economic depression of the last two years has created social conditions resulting in great physical suffering 'on the part of many hundreds of thousands of men, women and children. Unless conditions immediately and greatly change, this will, we fear, be aggravated by cold and hunger during the coming winter. The many reports which I have received from municipal officials, from'the Governor's Commission on the Stabilization of Employment, from the State Department of Social Welfare, and from many private organizations for relief and charity, agree that the number of our citizens who, this coming winter, will be in need will, so far as it is possible to estimate, be nearly, if not quite, twice as many as during the winter of 193o-1931. There are many causes. Many individuals and families, because of prolonged unemployment, have exhausted their savings and their credit. Many who were at work last winter and were enabled to take care of their relatives and friends are now themselves out of work. In the same way, many employers who, up to recently, with fine public spirit have continued to use their re459

Page  460 Relief of the Unemployed sources to prevent the laying-off of workers, are finding that they can no longer do so. Last winter, distress was to a great extent alleviated along three distinct lines: first, through the recommendations of the Commission on the Stabilization of Employment which pointed out the method of staggering employment in order to provide work for more people, and was largely instrumental in bringing about the coordination of relief work of the various municipalities and private agencies throughout the State; second, by the authorization and construction of large additions to public works on the part of the State and the political subdivisions thereof; third, by a generous response by private individuals in the form of contributions for relief. We could proceed in accordance with the same program and policy used last winter were it not for two facts which, according to the best information obtainable, seem incontrovertible. The first is that the amount of relief needed will of necessity be vastly greater this coming winter; secondly, the resources hitherto used will not be adequate to meet the additional needs. There is no escaping the simple conclusion that very large additional funds must be looked for this winter to supplement the lines of assistance given last year. I am confident that every county, every city and every town will continue its program of public works and add to it wherever possible. Nevertheless, there are many communities in the State which, because they have approached or are approaching their constitutional debt limit or for other equally good reasons, will find themselves unable greatly to add to employment on public works. It is worth while remembering, too, that where these public works are not paid for out of current receipts from taxes, the issuing of notes or bonds by municipalities calls for their subsequent payment out of taxes derived almost wholly from real estate - a form of property which today already bears a heavy load. It is therefore probably correct to estimate that the total of public works giving direct employment to labor will not 460"

Page  461 Relief of the Unemployed and cannot be greatly increased during the coming year in the average of the municipalities of the State. We now come to the source of relief provided by private charity. Even though the generous contributions in previous years of those who appreciate their civic responsibility in this matter should equal the previous sum, it will still fall short of the total needed. Let me make it clear that no individual who can afford it has the right to give one dollar less to private relief work than he has given in the past. The net result of this survey is that we must recognize these facts; that the local subdivisions of government can in most cases not greatly increase their direct employment of labor and that private charity will prove inadequate to meet the added burden of the next few months. By a process of elimination, if by nothing else, the responsibility also rests upon the State. It is idle for us to speculate upon actions which may be taken by the Federal Government, just as it is idle for the purpose for which we are here gathered to speculate about the causes of national depression. It is true that times may get better; it is true that the Federal Government may take action to eradicate some of the basic causes of our present troubles; it is true that the Federal Government may come forward with a definite construction program on a truly large scale; it is true that the Federal Government may adopt a wellthought-out concrete policy which will start the wheels of industry moving and give to the farmer at least the cost of making his crop. The State of New York cannot wait for that. I face and you face and thirteen million people face the problem of providing immediate relief. To supplement and in no way to cut down the existing sources of relief, the State must itself make available at once a large sum of public moneys to provide work for its residents this winter where useful public work can be found; and where such work cannot be found, to provide them with food against starvation and with clothing and shelter against suffering. To wait until the regular session of the next Legislature would mean that half of 461

Page  462 Relief of the Unemployed the winter would be gone before the necessary legislation was passed and the work or organization set up. This answers the suggestion of waiting until it has been definitely established that local endeavor and private charity have failed to meet the needs of the various communities. It is only by using the next two months for the gathering of the necessary facts, the setting up of the machinery, and the collection of the money, that the needs of the winter months can, beyond a doubt., be met. With my deepest sincerity I believe that the State has an immediate duty and that further delay is impossible and wrong. No Government is infallible; no Government can guarantee that every case of suffering or distress will be taken care of by it or by its agents. All that Government can do is to act with reasonable foresight and so far as its resources allow, to plan for the fullest measure of relief. At best there will be many individual cases of suffering, but the State should take such reasonable steps as lie within its power to make the number of cases of suffering as small as possible. To carry out with the greatest possible effectiveness the high duty which is the State's, I recommend the following program to care for the relief of distress and the alleviation of unemployment: i. I suggest that the administration of unemployment and distress relief within the State be placed in the hands of a temporary emergency commission of three persons to be appointed by the Governor to serve without pay. This commission', to be known as the ''Temporary Emergency Relief Administration," should be empowered to recommend to the Governor the appointment of local subsidiary commissions of three or more men and women in such cities and counties as it deems advisable. The sum of twenty million dollars, which I am reliably informed is the estimated amount required to meet the needs of the coming year, should be appropriated, and should be apportioned by this commission among the various counties and cities of the State. The distribution should be based in amount on several factors, such as: (1) The number of people and families 462%

Page  463 Relief of the Unemployed unemployed in the locality, requiring assistance; and (2) the amount of local effort and initiative as shown by the money raised in the municipality by public and private means, consistent with the financial ability of the municipality and its people. Based on the theory that the distribution. of relief of the poor is essentially a local function, I believe that the State in supplementing the amounts locally raised should seek so far as possible to encourage local initiative by matching local effort; so that the larger the amount raised locally, the larger the contribution by the State. The actual disbursement of this money should be in the hands of the local welfare officer of the municipality, subject, however., to the approval of the local Temporary Emergency Relief Commission, if one be appointed. The local commission should act in an advisory capacity to the local welfare officer as well as to the State Administration. Such a local commission can do a great deal, not only by coordinating local private relief, but also by inducing people to have as much work done in and about their houses, businesses and farms as is possible in order to provide many additional odd jobs. Much of the strain of the present situation could be relieved if everybody were to engage in an individual, personal, job-furnishing campaign, doing now the work which they might ordinarily postpone for a year or so. The local commission could accomplish much by stimulating this kind of activity. I also contemplate organizing committees throughout the State to encourage this kind of endeavor. It should be provided by statute that the money be expended as follows: If any form of employment can be found for the public use, prevailing rates of wages should be paid for such work; if, however, 'it is impossible to locate or provide work of this kind, then the local welfare officer may purchase and give to the unemployed within his jurisdiction necessary food, clothing, fuel and shelter for them and their families. Certain definite restrictions should be embodied within this statute, viz.: i.- That under no circumstances shall any actual money be 463

Page  464 Relief of the Unemployed paid in the form of a dole or in any other form by the local welfare officer to any unemployed or his family. 2. That this relief should be restricted to persons who have resided in New York State for at least two years prior to the enactment of the statute. 3. That no employment or relief be undertaken except in accordance with rules and regulations laid down by the Temporary Emergency Relief Administration. The administration should be given the widest latitude and discretion in the apportionment of this money and in its distribution. It should be permitted to retain out of the twenty million dollars a million dollars or more within its discretion to be expended by the State on such work as the State itself may do in the winter months, such as the grading of State lands, construction and maintenance of roads and parkways in such sections of the State as this is possible. I have so far considered only the proper organization and the prompt distribution of work and supplies where they will be' of the greatest assistance. There is another requirement for a scientific and proper system of relief which experience has shown us has not been hitherto properly recognized or organized. Experience has shown that many of the most deserving cases not only refuse to apply for relief until actual starvation has set in, but allow the future health of their children to become permanently undermined by undernourishment rather than seek community help. Any proper relief system must have a thoroughly organized, enthusiastic and tireless department of invest igat ion., constantly seeking out those individuals or families who will not of their own accord come forward. This work must be undertaken by those who are enthusiastic and are sympathetic as well. I would suggest that this phase of our relief work be laid as a primary duty upon the women of our State; and I shall work in close cooperation with the proposed emergency relief administration to assist in the organization of women as individuals and as groups to carry out this purpose. 464

Page  465 Relief of the Unemployed 2. The necessary money for this unemployment and distress relief should be raised by a tax on personal incomes. It seems logical that those of our residents who are fortunate enough to have taxable incomes should bear the burden of supplementing the local governmental and private philanthropic work of assistance. I believe that this tax should fall proportionately on all incomes, over and above existing exemptions. If each person paying an income tax were required to pay merely half again as much, I am informed by the State Tax Commission, the necessary twenty million dollars will be raised. I have had prepared a computation of what these increases will amount to. You will observe that the burden placed upon the man with a small income is slight indeed; the single man with an income Of $3,000, for example, will pay an additional tax of only $2.50; the married man with a family earning $io,ooo a year will pay an additional tax of only $26. The following table shows for typical cases the amount of additional tax for individuals having incomes of certain sizes according to family responsibilities: Married persons Single and heads of families Net income persons (two children or other dependents) $2,500................... $o.oo..................... $o.oo 3.,000....................2.50..............................0.00 4,000.....................7.50............................0.00 5,9000.................. 12.50.............................. 1.00 10,Y000.0.................37.50.......................... oo 26.00 30,%000..................125.00....................o.........102.00 50,1000.................. 425.00 o.......................402.00 100,1000......... 0..... s..1,ý162-50............................1,128.00 There were approximately 300,000 personal income tax payers this year. By spreading this burden among those people, few of them will feel it to an appreciable extent and the whole body of our income-making machinery will be sustaining its fair share of the burden. It is clear to me that it is the duty of those who have benefited by our industrial and economic system to come to the front in such a grave emergency and assist in relieving those

Page  466 Relief of the Unemployed who under the same industrial and economic order are the losers and sufferers. I believe their contribution should be in proportion to the benefits they receive and the prosperity they enjoy. There are two alternative ways in which this tax could be levied. First, it could be imposed upon the 1930 incomes. The advantage of this method is that the exact amount of this tax is known because of the fact that the tax returns are now actually on file. The objection to it is that people having already paid' their 1930 income tax will feel reluctant to pay a further tax additional thereto. Second., the tax can be levied next April on the 1931 incomes and the money can be provided immediately by the Comptroller through the issuance and sale of short term certificates. This method would obviate the objections of those who have already paid their income tax for 1930, but interposes another fairly important objection that the exact total of the tax is unknown and is therefore speculative. In this connection, I desire to inform you that the present estimate of the Tax Commission, made, however, more than seven months before the receipt of the actual returns next April, is that the amount of the net personal returns for the year 193 1 will be about the same as for the year 1930. 3. Legislation should be enacted giving to the various cities and counties of the State authority to borrow money and expend it for the employment of their residents on public works. You will recall that Chapter 284 of the Laws of 1931 extended this authority to the City of New York. I am informed that it has been used in that city with great benefit in the amelioration of the unemployment situation; and I commend it to your consideration for enactment for such other municipalities as may desire to have this power. I believe that municipal obligations to be issued for this purpose should be for no greater period than three years. 4. I recommend that for all future contracts on public works by the State or in a municipality thereof, to be let between October 1, 1931, and June 30, 1932, there be inserted a clause providing for a five-day week for all labor, exclusive of supervisory force, under rules and regulations to be established by the 466

Page  467 Relief of the Unemployed Department of Labor. In this way the benefits of employment on public works may be spread somewhat more thinly, but certainly more widely. 5. One of the by-products of the economic depression has been the recent application for the State bonus by a great many World War veterans--a bonus to which they were entitled by legislation passed in 924 after approval by the people. These veterans, not needing the money originally voted to them by the State at that time, failed to make claim therefor. Now the exigencies of the present situation force them to seek assistance where they can find it. This is no new bonus but is the bonus already voted for and approved, but not paid out merely because of failure to make claim therefor. I am informed by the Adjutant-General that these tardy claims will total about $548,00ooo more than the present fund contains. I therefore suggest that there be allocated out of the twenty million dollar fund hereinabove provided the sum of $548,000 to be turned over to the Adjutant-General for this purpose. This program is the result of many months of study and reflection on my part. I am convinced that the time for platitudes as to the necessities of the situation has passed. The time for immediate action is at hand and I trust that your Honorable Bodies will act. Therefore, in compliance with Article IV, Section 4, of the Constitution, I recommend for your consideration the following: I. The creation of a temporary State agency to carry on the expenditure this winter'of State moneys on public State work for the employment of residents of the State. II. Authorizing such agency to apportion State moneys among the counties and cities of the State to be disbursed by them this winter for employment on local work useful to the public, and for giving necessary food, clothing, shelter and warmth to residents of the State where useful public work cannot be found for them. III. The appropriation of money out of current revenues to be immediately available for the relief of distress and the ameli467

Page  468 Federal Emergency Relief oration of unemployment, and the laying of a tax on personal incomes to provide the necessary moneys. IV. Authorizing cities and counties in the State for the period of one year to borrow money for a term not exceeding three years, to be used by them for the employment of local residents on local public works. V. Legislation providing for a five-day week in all future contracts for labor on State and municipal public work other than supervisory labor. VI. Providing State money to pay soldiers' bonuses due to World War veterans under the provisions of Chapter 19 of the Laws of 1924 but which have not yet been paid because of delay in filing applications therefor. 98 ([A Telegram Urging the Passage of the Federal Emergency Relief Bill. February lo, 1932 I am glad you are working for the unemployment relief bill. It is an important factor in the present emergency. It will equalize the burden throughout the Nation. Although it should not be regarded as a permanent Government policy, nevertheless it is justified as carrying out the definite obligation of Government to prevent starvation and distress in this present crisis. Plans for large public works are possible if the works themselves are carefully planned and economically necessary, but they do not relieve distress at this moment. That is why I hope the Emergency Relief Bill will pass. Hon. Robert F. Wagner, United States Senate, Washington, D. C. 468

Page  469 An Unemployment Insurance Law 9 9 (fA Message to the Legislature Recommending an Unemployment Insurance Law. February 15, 193,9 To the Legislature: IN JANUARY, 1931-, I called a conference of the Governors of the seven industrial States of the Northeast -Ohio, Pennsylvania, New Jersey, Massachusetts, Connecticut, Rhode Island and New York -to discuss and consider various proposals in connection with the current period of unemployment. Among the things a ccomplished was the appointment of a committee on unemployment insurance to consist of one representative of each of the States. This commission has filed its report with the Governors of the respective States involved and I am forwarding to your Honorable Bodies a copy of this report. The report offers the following general suggestions for putting an industrial insurance plan into effect: 1. The payment by each employer of a contribution amounting to q percent on his payroll; and its reduction t~o 1 percent when the accumulated reserve per employee shall have exceeded $50. 2.The maximum rate of benefit to be $10 a week, or 50 percent of an employee's wage (whichever is lower); and the maximum period of benefit to be 10o weeks of any 1 2 months. 3. The payments by each employer to constitute the employment reserve of his firm and not to be added to the common pool. 4. The creation of an Unemployment Administration of three members, representing labor, industry and the public. 5. The State to take prompt steps to extend its public employment service, because no system of unemployment insurance can accomplish its purpose without a properly or469n

Page  470 Continuation of Relief of Unemployment Distress ganized and efficiently operated system of employment exchanges. 6. The Unemployment Commission to encourage cooperative action between firms and industries, because the most effective measures for achieving greater stabilization cannot be accomplished by a single firm. I recommend the immediate, careful consideration of this report by your Honorable Bodies. I am having prepared legislation to carry out the recommendations made. It is needless for me to point out to you the hardships and misery which have been occasioned to millions of innocent families during the past two years. The plan suggested cannot, of course, in any way prevent a recurrence of all of the conditions through which we have gone. One definite thing that it can do, however, is to alleviate in some small measure the extreme suffering which economic crises always occasion. The plan suggested is not a radical one. It has received the careful and prolonged study of experts. It certainly should be given a trial at the earliest possible moment. ioo ({A Message to the Legislature Urging Continuation of Relief of Unemployment Distress. March 1o, 19329 To the Legislature: O N MARCH 1, 1932, I sent to your Honorable Bodies a message pointing out the'urgent necessity for continuing the life and work of the Temporary Emergency Relief Administration in order to continue to alleviate in part the distress caused by current unemployment. Prior to sending that message, and subsequent thereto, I have been in frequent conference with the majority and minority leaders of your Honorable Bodies. I believe that we are all in substantial accord as to the imperative need for continuing this work and providing the necessary funds 470- e

Page  471 Continuation of Relief of Unemployment Distress therefor. It is indeed inconceivable that the State of New York fail to make provision to reduce in so far as possible the suffering of its people from cold and hunger this year and next. The relief furnished last winter should be repeated during the coming winter wherever necessary. It is estimated that the cost would be about $5,000,000 UP to November 1', 193.2; $15,000,000 additional to February 1, 1933; $15,000,000 additional to January 1, 1934. I believe that we were all of one mind at our conferences that in normal times the only proper way to provide funds for this purpose would be by a tax of some kind. This form of expenditure clearly comes under the head of current expenses and should be borne from current funds. We cannot., however, blink the fact that the people of our State are already heavily burdened by taxation. The burden is now made even heavier by the present business depression which, of course, reduces ability to pay. It is further expected that additional burdens of taxation will be laid by the Federal Government to make up the huge deficit in the Federal Treasury. Unfortunately, the best economic thought of the country is unable to predict with any certainty any early return to normal conditions which would warrant the hope that by next year the condition. of business would make more easy the levy of additional taxes needed for these purposes. In such extraordinary times, I believe that extraordinary measures, otherwise not to be considered, are justified. It has been suggested in our conferences that the sum of five million dollars be appropriated from current revenues without a new tax, so as to carry the work of the Temporary Emergency Relief Administration up to next election day, and that on election day a referendum be submitted to the people for a bond issue to meet the balance of the requirements up to January 1, 1934. I approve of that suggestion. I am fully aware of the fact that this would be a departure from the pay-as-you-go policy; I am also aware of the fact, however, that conditions which now face us, in their gravity akin to war conditions, warrant this deviation from that principle. 471a

Page  472 Continuation of Relief of Unemployment Distress May I point out to you that there are two forms which this bond issue might take? First, a bond issue might be submitted to take care of the permanent concrete road construction for the next fiscal year. There is, of course, nothing new or startling about this suggestion. Until about twenty years ago it was the policy of the State to build all of its permanent roads by the pro 'ceeds of bond issues. To a certain extent this policy was justified by the fact that the ordinary life of that kind of highway is about twenty years and by the theory that the entire burden of the cost thereof should not be borne in any one year. If the necessary funds for the State's construction of concrete highways in 1933-1934 were furnished by a bond issue, this would relieve the-current revenues of the State of a sufficient sum of money to pay for unemployment relief out of these current revenues. In that way, without providing any additional tax, relief money could be provided out of current revenues which would be made available by virtue of the fact that the necessary highway money had come from the proceeds of the bond issue. Two facts would be understood by the. voters: (1) It would be financially sound to bond highway construction, especially as a temporary method; (2) they would by voting for this bond issue release enough money from existing tax revenues to avoid imposing new taxes for unemployment relief. The second form would be to submit to the people at the next election a proposal for a bond issue to take care directly of unemployment relief up to January 1, 1934. If the people approve this proposal, the necessary money for the coming winter and part of the succeeding winter would be made available from this issue and the burden of taking care of distress relief would thus be spread over a period of years. While in theory this issuing of highway bonds is preferable because it funds a public improvement which lasts many years, and the funding of unemployment relief does not do this, nevertheless from the practical rather than the theoretical standpoint either method brings a substantially equal amount of cash into the treasury, and on this ground either may be justified. It should be borne in mind that even if the.47P"

Page  473 A Bond Issue to Relieve Unemployment, 1932 proposition be approved on a referendum, the money need not all be appropriated next year unless the Legislature deems it necessary. Only so much as conditions then make necessary would be spent. I repeat I am willing to approve either of these methods of funding this expense over a long term, only because of the abnormal and extraordinary situation which faces us. It should not be deemed a precedent for any further deviation from the payas-you-go policy. I believe that the legislative and executive branches of the Government are in strict accord on the soundness of the pay-as-you-go principle in State finance for anything other than permanent improvements. It has been the foundation of the credit of our State, which is the strongest in the world, and we should adhere to it under all ordinary conditions. The present crisis, however, cannot be met, except with great hardship, in any way other than as above indicated; and I recommend it to your Honorable Bodies for approval. loI ([The Governor Asks for Public Approval of a Bond Issue to Relieve Unemployment. October 29,1932 I URGE the voters of the State of New York to give overwhelming approval to Proposition No. 1 on the ballot, authorizing a thirtymillion-dollar bond issue to take care of unemployment relief from November 15th on. This will avoid a special session of the Legislature, and new taxes for relief purposes. Most important of all, it will prevent hunger and suffering on the part of hundreds of thousands of our citizens. 473

Page  474

Page  475 XVIII Land Utilization and State Planning THE DOCUMENTS in this chapter show the policy begun during my Administration as Governor, and actively continued by me as President, looking to the proper utilization of the land of the State and Nation. Any comprehensive program for the benefit of that part of our -population which lives by agriculture must necessarily include, particularly in its long-range features, provision for the use of each piece of land for the purposes for which nature has made it best fitted. See also, on this subject, Items 3, iS on page 119., 211 22, 131 on page 654 of this volume.

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Page  477 102 ([ A Proposal for a Survey of Soil and Climatic Conditions. Address at Silver Lake, N. Y. August 15, 1929 IT is appropriate in the center of one of the important agricultural areas of the State to lay down a part of the agricultural program for the coming year. People will remember that on the initiation of the Governor's Agricultural Advisory Commission an important program of farm tax relief was put through at the last session of the Legislature. This was in the nature of an emergency program, the result of which could be made of immediate benefit to the farmers of the State. The relief from highway taxes, the reduction in grade crossing elimination contributions by the localities., and the increased State aid for small rural schools will save the agricultural taxpayers many millions of dollars every year from now on. The same Agricultural Advisory Commission has again been in session, taking up this time one of the important steps for the all-time improvement of agricultural production. It is a fact not generally realized that the State does not know what its agricultural possibilities are. In other words, no complete survey has been made for the purpose of making definite plans for the more profitable use of each kind of land. There are dozens of d ifferent kinds of land in the State, and it is not stretching the point to say that a very large percentage of agricultural lands is now used for the production of the wrong kind of crop. The commission proposes, therefore, that the first step must be to complete the soil survey of the State. For many years past cooperative work has been going on between the State and the Federal Government but it has resulted in the survey of less than half of the counties of the State. At the present rate of procedure it would require thirty years to finish the soil survey. It is therefore the first step in the program that this soil survey shall be speeded up so as to cover the whole State within the next few years. This will result in knowledge of the kind of soils in every 4 7 17

Page  478 A Survey of Soil and Climatic Conditions county and every neighborhood and every farm, and will save millions of dollars during the lifetime of the coming generation. For example, it is said that more than half of the orchards of Western New York are planted on the wrong kind of soil. If a knowledge of these soils had been available, millions of dollars would have been saved by the fruit growers of that part of the State. With increasing specialization in crop growing it is essential to know what soil is best adapted to each crop. With this soil survey there should go hand in hand a complete survey of the climatic conditions of the State and it is a fact little recognized that one county may have conditions of climate very different from an adjoining county, so different in fact that the effect on the same crop will be marked. This climatic survey applies not only to general crops but especially to orchards and vegetables. Most people know of the great success of our State in growing fruits of all kinds, but it is less well known that in the last census year the vegetables produced on the farms of New York represented one-fourth of the total value of all farm crops and that the State led all other States. The third step in the survey is to take an inventory of all of the forest resources of the State. While it is true that the State is consuming far more timber each year than it is growing, it is also true that thousands of owners of wood lots are unable to obtain a dependable market for their forest crops. In other words, we are losing at both ends; we are not growing enough timber, and at the same time not getting what we should for the timber which we have. There have been much talk and some legislation on reforesting the waste lands of the State, but we have little detailed knowledge of where that land is, what its boundaries are, and what kind of trees should be planted on it for the best returns. For the above reasons the Governor's Agricultural Advisory Commission feels very strongly that the next important step in the advancement of agriculture in our State is to make a com478

Page  479 A Survey of Soil and Climatic Conditions plete survey. This cannot be done in one year, but the work can properly be started at the next session of the Legislature. For the first three years the total cost of the various projects will come to about $i io,ooo a year. These projects fall into the following classes: i.Completion of the soil survey, including preparation of detailed maps.:2. Assembling and preparing complete weather data. 3. Classification of land for agriculture, forest, recreation or residential purposes. 4. Survey of the present uses and best adaptations of land, including orchards, vegetables, forests, pastures. 5. Studying the cost of producing milk under the various existing systems of dairying. I have long been interested in the general subject of city and of regional planning. The present proposed survey of the whole State is merely an intelligent broadening of the planning which heretofore has been localized. It is a study for a statewide plan which will include the use of every acre in the whole State. So far as I know this is the first time in the United States that the city or regional plan idea has been extended to take in a whole State. It will, therefore., be of great interest to everyone who realizes the importance of looking ahead and of using our resources to the best advantage. I am particularly happy that the Governor's Agricultural Advisory Commission has looked at this big subject in such a broadminded way. The survey which they propose and which I heartily endorse is necessary before we spend millions of dollars which might otherwise be wasted. It is a good businesslike proposition and will in the long run save the agricultural population and also the city dwelling population many millions of dollars through the more economical production of food crops and the increase of our forest resources. I am confident that there will be virtually unanimous support for this excellent program from all parts of the State. 479 e

Page  480 A Land Policy for the State 103 ({A Message to the Legislature Formulating a Land Policy for the State. January 26, 1931 To the Legislature: IN MY Annual Message of January 7, 1931 to your Honorable Bodies, I pointed out that we in this State have in our program of remedial legislation for our farmers and rural dwellers progressed to the point where we should formulate a definite farreaching land policy for the State. In a literal sense, the adoption of such a land policy affects not merely the rural population of the State., but in an equal degree the entire population of the State. It involves the food supply of all our citizens, their water supply, timber supply, and indeed practically all of their market commodities. What do we mean by this land policy? Fundamentally, we mean that every acre of rural land in the State should be used only for that purpose for which it is best fitted and out of which the greatest economic return can be derived. New York has about thirty million acres of land, of which twenty-seven million acres are rural and non-industrial. Of these about five million acres are in mountains, forests, swamps., and other lands that have never been cultivated. That leaves about twenty-two million acres which were once in farms. Of this acreage four millions have been abandoned or are no longer used for farm purposes. As a result, about eighteen million acres are now devoted to farming. I propose that the State proceed to find out as soon as possible for what these eighteen million acres are best suited. It seems almost unnecessary to say that land which is suitable for the raising of crops on a profitable basis should not be left idle or devoted to forest purposes; and that, conversely, land which can be used only for tree planting should not be cultivated year after year in a futile effort to raise profitable crops thereon. And yet, it is unquestionably true., that thousands of farmers., year after year, are spending labor and money in various parts of the State 48 0.

Page  481 A Land Policy for the State trying to get agricultural products out of land which will never be able to yield a profit in crops, but which should be devoted only to reforestation