some time generally appreciated by our people, but only of recent years has anything tangible been done that would indicate Statewide interest in the development of the State's only port. I refer to the creation of a State Harbor Board by the Legislature of 1915. Unfortunately our Constitution does not permit financial assistance with regard to development of terminals, so that while the act creating the board gives it broad powers to acquire and hold property, no practical means could be placed at its disposal to bring about that end. The foundation, however, has been laid and we should build upon it, so that in time the labors of this board shall not be confined as at present to certain executive functions local to the harbor of Mobile and the mere regulation of water terminal property.

We have seen the advantage of public ownership of water terminals by the State at the port of New Orleans. Public ownership of such terminals is the ideal condition. Perhaps some years may pass before we can reach that point, for regard must be had for the expense of acquiring needed property, which unfortunately is now privately held. The start has been made; the State should go further and by constitutional amendment lend its credit to the Harbor Board for water terminal development at Mobile and at such other carefully selected points of concentration of freight on our rivers as may seem advisable, and these latter should be increased from time to time to meet the demands of development. The idea I wish to convey is that the State Harbor Board should be truly of State-wide jurisdiction and benefit insofar as our rivers are concerned. It should be given power step by step reasonably to acquire and develop needed terminal sites, so that in the end a compact and useful system would result. The Harbor Board should, while this is in process, give all encouragement to private and municipal development under such conditions that the owner may be protected from State competition that would result practically in confiscation. The regulation of charges of all waterside terminals should be reserved in the Harbor Board, so that no unfair charge should, on the one hand, work hardship upon the public, or an inadequate charge on the other hand, serve the purpose of diverting freight to one point at the expense of another.

As a further means of giving the Harbor Board a State-wide status, I would recommend that the Alabama River be given representation by amending the law so that one or more members from Montgomery county, or some other county touching the Alabama River, should be placed upon the Board.

BLUE SKY LAW

In recent years the people of the State have sustained financial losses through investments in stock and bond issues which

have no real value. These fake schemes not only absorb the money of unsuspecting innocent investors, but they injure the reputation of the State and are detrimental to legitimate enterprises that are based on genuine value.

I suggest that you consider the advisability of enacting a law designed to prevent wild-catting and protect the gullible part of the public from investing in stocks and bonds which have no real foundation of value but which hold out to the unwary investor the hope of impossible returns.

The object of such law is not to remove the ordinary hazard of business, nor to limit the right of the public to engage in speculative enterprises so long as they are fairly conceived and honestly conducted. In authorizing the issuance or sale of securities, the State, as a matter of course, cannot tell whether the project will be successful, but it can reasonably insist that the prospective investor shall be honestly informed of the character of the investment offered and that the money which he invests shall be put to work for him and not find a permanent resting place in the pockets of the promoter and his solicitors. I recommend that you also consider the regulation of real estate dealers in Alabama, selling town lots, oil lands, and other real estate, located in other states.

CONDITIONAL APPROPRIATIONS

Former legislatures have passed many bills carrying appropriations to be available when in the opinion of the Governor the condition of the treasury warrants the expenditure of the money. These are commonly known as appropriations with "strings tied to them." They are a standing embarrassment and menace to the treasury of the State. The danger should be removed by the repeal of all such appropriations, and future expenditures should be made on the merits of the several propositions as viewed in the light of present conditions and circumstances.

CONFEDERATE VETERANS

The remainder of the journey of life of the heroes who wore the gray in the sixties is, in the order of nature, very short. In a few years they shall have passed from the scenes of their activities, leaving behind nothing but the sacred memory of their splendid heroism and noble self-sacrifice. At the call of Alabama they freely gave their health, their property, and their hopes, laying their all upon the altar of their country. When the fortunes of war went against them, they promptly took hold upon and solved the new and perplexing problems that confronted and threatened the life and liberty of the State. Their claims are

superior for service rendered during peace and war. As representatives of a grateful people who remember their services and sacrifices let us make their remaining days as easy, comfortable and peaceful as possible.

EXPENSE ACCOUNT OF STATE EMPLOYEES

I recommend the passage of a law to require all State officers and employees who travel at the expense of the State to file itemized statements of expenses incurred, with vouchers for each item of expenditure attached, and making it unlawful for warrants for such expenses to be issued without such statement and vouchers attached. The sound business policy of such requirements is apparent.

INSURANCE OF PUBLIC BUILDINGS

Insurance on the buildings belonging to the State is now placed by officers in charge of them. This could be better and more cheaply done by the Insurance Commissioner, who is fully informed as to the solvency of insurance companies and their methods of transacting business. All insurance policies should be kept in Montgomery. I advise the enactment of a bill to cover this recommendation. I also recommend that you give consideration to the advisability of the State itself carrying the fire risk on the public buildings of the State and several counties. I am advised that if all the premiums now paid on public buildings should be paid into an indemnity fund, the losses could be fully compensated and a considerable surplus accumulated.

UNITED STATES SENATORS

The seventeenth amendment to the Constitution of the United States provides for the election of United States Senators by direct vote of the people of the State. The Legislature should direct and provide the method by which vacancies in the Senate should be filled. The condition of public business at Washington is sometimes such that a vacancy should not be allowed to continue during the time necessary to hold a special election. You should, therefore, provide a method by which vacancies in the Senate can be filled pending an election for that purpose.

ECONOMY AND NOT PARSIMONY

I have recommended for your consideration certain measures that I consider essential to the placing of the affairs of the State on an efficient and economical basis. I earnestly urge you to exercise economy in shaping the State's business but not at the

expense of efficiency. As business men we owe it to ourselves to check waste and extravagance wherever it may be found, but let us not sacrifice efficiency to false economy. The people of Alabama are not niggardly nor parsimonious. They want good government and are willing to pay for it. They can afford to pay whatever is necessary to secure and maintain all wise, progressive activities of government and are perfectly willing to do so provided they are directed along wisely conceived lines and are administered with honesty, economy and efficiency There are just two courses for Alabama to follow. One is the path of false economy and ultra-conservatism that leads inevitably to stagnation and decay. The other is the path of true economy and progress along which lie prosperity and happiness for the people and financial ease and independence for the State. There is no middle path. To follow the first it is but necessary to drift along in the old careless, methodless manner of treating the State's business; to follow the other we must strike out in a new direction, every man being willing to do his part and pay his part toward the placing and keeping of Alabama in the front rank of the progressive states of the Union. We must go forward or backward. There is no standing still.

PLAIN LAWS AND FEWER LAWS

The phraseology of our laws is too often obscure and confusing. Every law should be intelligible to the ordinary lay mind. Much needless litigation in our courts can be avoided by the use of simple language in the construction of legislation.

I caution you against attempting too much legislation. The path of wisdom leads away from excessive legislation in the direction of a prudent and conservative course that would produce better quality and less quantity, which is the true test of legislative merit.

A little law well understood and rigidly enforced will better subserve the public welfare than whole libraries of laws of ambiguous meaning and doubtful necessity.

Not the least valuable service a legislator could render would be the threshing out of the grain from the chaff.

There should be a good and apparent public reason for the passage of every general bill. Legislation which is founded on individual whims and caprice instead of well considered public sentiment should be studiously avoided. Changing conditions of course require changes and modifications in the laws to suit new conditions, and new laws are necessary from time to time, but let us not change the old laws to the confusion of the people, nor encumber the statute books with new laws that are not urgently needed.

LEGISLATIVE PROCEDURE

Fifty days sessions of the Legislature, held four years apart, must necessarily be filled with important matters. You will find it necessary to save every moment of your time if you exercise that painstaking care and scrutiny so essential to the enactment of wise and the avoidance of unwise legislation.

I suggest, as a time saver, that committees of the Senate and House hold joint sessions when practicable. They would not only be a convenience to the members of committees and interested public, but would serve to bring the two bodies into more intimate association and afford opportunities for free interchange of views and opinions that would be most helpful and promotive of a spirit of co-operation. The nearer the members of the two houses get together and the more they confer with each other about the business of the State, the better that business will be conducted. The necessity for two hearings will be obviated with a resultant saving of much time and unnecessary duplication of work. Of course, each committee should reach its own conclusions and report to its own house.

Without the means of obtaining the information so necessary to intelligent discussion of the needs of the many departments of the State and lacking that knowledge of affairs which is derived only from active experience in the executive office, I have found it necessary, as you have observed, to confine this communication to a general rather than specific nature. In my judgment, there should be an interval of several months between the inauguration of the Governor and the meeting of the Legislature. That, however, is a matter which we cannot control at this time. It seems to me that it would be wise for you to take a recess after the most urgent business is transacted, which should require say fifteen legislative days, to reconvene some months later. During the interval a joint committee of the House and Senate and the Budget Commission, if created, working together, should be charged with the preparation of a revenue bill and the Budget Commission should prepare a budget for your consideration at the adjourned session. The business that I deem necessary for transaction at the short session is to make provision for:

Legislation for enforcement of prohibition laws.
Budget Commission.

Board of Control and Economy.

Commission to conduct investigation of educational system. Committee or commission to recommend legislation for improvement of judicial system.

Legislation necessary for the State to get full benefit of Federail aid for vocational education, and for extension work in agriculture and home economics.