be building for the future. If our present financial condition warranted our doing so, I should advocate both a water storage constitutional amendment and an act supplementing it and conditioned upon its adoption by the people. Knowing what I do about the State's finances, I do not believe that we at present should ask for an appropriation or for a bond issue for water storage, and consequently would not advise going beyond the submission of an amendment which if adopted will make it possible for future Legislatures to take the next step forward if conditions warrant. The State has parted with most of its natural resources, for with the timberlands went the water powers, and about all that remains is the opportunity to develop storage reservoirs. Shall charters be granted to private companies to develop water storage? The end to be sought is full utilization of Maine's water resources, for every water horse power developed, whether used for public or private purposes, means that our people and industries thereby become less dependent upon the coal supply. We all want development and if the State does not undertake it, private interests should be allowed to do so, with the State's interests fully safeguarded. In every private storage development hereafter undertaken I would reserve to the State the right to purchase it at any time for a fair price without paying for the franchise or storage rights granted by the State; the purchase price in no event to exceed the cost of the development. A clause partially covering these restrictions already has been placed in certain storage charters, and the State also could charge water storage companies a reasonable annual rental for the privilege of impounding the water and raising the natural water level of the lakes and reservoir basins. In this way private development would be encouraged, the State would derive an income, its rights would be protected, and it would be in a favorable position to acquire valuable rights upon payment of a fair price therefor if conditions later warranted such action. The recent coal strike, and threat of another, have impressed upon the people of Maine the great value of its water resources, and although the State itself owns but few water power locations, much can be accomplished through ownership and control of storage systems. The State always will treat its public utility companies fairly and it has the right to expect these companies to do the same by the people of Maine whom they serve and whose money is invested in them. It is well for home capital to be interested in home enterprises. Companies that invite the public to purchase their shares of stock should sell them at a price consistent with their actual market value, and wise management is needed if the investments of our people are to be conserved. Public utility companies should never enter the field of politics, nor should they seek to control public opinion through direct or indirect ownership of newspapers. The days of such things are passing and the people of Maine have a better understanding of affairs than ever before. The financing of all public utility companies should be open and above board. Those who serve the public and who are entrusted with its savings assume grave responsibilities. Maine Water Power Commission Through my efforts the Maine Water Power Commission was established and valuable work has been done in stream flow measurement, map making and water storage investigation. I believe this work could be properly carried on and that it would not be detrimental to the public interest if the present membership of the commission of ten was reduced to three, or if this work were placed under a separate division of the Public Utility Commission until the Legislature and the people shall have taken the next step forward in a water power program. This change would effect a considerable saving of money without loss of efficiency. Future Legislatures can make provision to meet the situation that will arise if the people adopt the constitutional amendment above referred to. Natural Resources: Forests Although our forests principally are located in the northern and eastern sections of the State, most of our people, realizing that the forests are a great natural resource, desire to have them protected from the ravages of fire. This was apparent when my proclamation prohibiting hunting was issued last October. Citizens from all parts of Maine approved my action and almost without exception hunters, sporting camp owners and guides willingly made a sacrifice for the sake of the forests. It was encouraging to see the helpful spirit that prevailed, and many people with no financial interest in timberlands appreciated what was done to check the fire menace. Fire protection is the foundation of any sound forest policy. Our present system approaches completion and its work is effective. In 1903, 349 forest fires destroyed 269,451 acres of timberland, while in 1921, 362 forest fires destroyed but 68,830 acres. The issuing of the proclamation. referred to established a precedent for the future. Conditions were serious and it was not a time for hesitation. Our laws against starting fires in the woods need attention and heavier penalties should be imposed for their violation. The danger of fires and of hunting fatalities would be reduced if the hunting season were opened a fortnight later than at present. Three-quarters of the area of the State is covered by forests that furnish. raw material for our principal industries, protect the sources of our water powers, stabilize agriculture, harbor our fish and game, and provide places of recreation both for our own people and countless visitors. Our wood using industries represent 431% of the total capital invested in industry within the State, and 34% of the persons employed in all our manufacturing establishments are directly connected with our wood supply. The forests of the northern and eastern sections cover large areas, but in addition to these the farmers' wood and timber lots represent large values, in many cases greater than the value of their owners' tillable land. These wood lots give employment during the slack periods and have saved many a farm from foreclosure. The Forestry District plan meets with general satisfaction. The owners of forests feel they should not be subjected to municipal taxation as they derive no benefits therefrom. The timber areas or "wild lands" are grouped into a "district" and a special tax is levied upon them, the proceeds being used exclusively for the benefit of the lands thus taxed. In this manner they bear most of the burden of their own protection. During the year 1921 $105,968.74 was taken from the State Contingent Fund to help the Forestry District meet unusual fire fighting expenses, and of this $50,000 has not yet been repaid. It will be necessary to increase the District's taxes to meet this obligation. Wild Land Values In 1905 special appropriations were made for cruising timberlands to ascertain their value for taxable purposes. Since then this work has been continued and the Eightieth Legislature appropriated $40,000 for it, with the result that $2,552,434 has been added to the State's taxable property. Based on the 1922 tax rate this produces an annual revenue of $15,314.60, or 38% on the money spent, which will be paid into our Treasury year by year without interruption. One hundred and thirty-three townships remain unexplored by the State assessors, the cost of which will average $360 a township. This method of ascertaining values is fair both to timberland owners and the State and the investment that the State makes produces a generous income. I recommend a liberal appropriation for the next two years. Katahdin In my opinion the State should establish a forest reserve or park in the Katahdin country. This would provide a wonderful recreation center and afford a suitable location for experiments in scientific forestry. Some progress already has been made toward establishing a refuge for wild animal and bird life in this section. In 1919 and 1921 I advocated an appropriation for Katahdin, and if I thought the State could now afford it, should do so again. As I appeal to you to forego matters in which you are interested, I shall not ask an appropriation for the Katahdin project. It, however, would be well to recognize the principle of a State Forest Reservation and a law could be passed so that purchases later can be made when funds are available. This Katahdin region has a rugged grandeur that is symbolic of strength and endurance. It is typical of the sturdy character of Maine's sons and daughters. I believe the people of the State have become interested in Mount Katahdin and this Legislature now can lay the foundations for the future without putting the State to any expense. Natural Resources: Inland Fish and Game In 1922 $186,049.37 was spent by this Department. It has a wide field with unlimited opportunities for expansion. Our inland fish and game constitute an important natural resource that needs to be carefully conserved for our own benefit and that of those who follow us. This Department now receives a considerable portion of its fines, license fees and other collections, a plan that resembles the fee system of former days, long since abolished. The argument that if it is given its income those in charge will be more zealous in collecting it is a damaging one, for an Inland Fish and Game Commissioner should be as watchful of the interests of the whole State as he is of his particular department. All departments should be placed upon the same financial basis, the Legislature making definite appropriations and all income received going into the general fund in our State Treasury. In 1922 this department spent $88,801.78, but at present, except for its work in the lobster fisheries, has done but little to develop the boundless natural resources of our coastal waters. This is unfortunate, for here are great possibilities. The present system is cumbersome, for the Governor appoints three commissioners, who elect a director, who employs the wardens who watch the fishermen. This divides responsibility and makes for inefficiency in the public service. A department properly organized and in the confidence of the fishermen could be of great assistance to them, especially in finding a market for their catches. The life of the fisherman is a lonely one and he is inclined to shun contact with others. He especially needs recognition and encouragement. A single commissioner with vision and with practical experience could stimulate our salt water fishing industry and soon the coasts of Maine would be furnishing an unlimited supply of sea food to the fish markets of New York and New England. Labor Maine has advanced child labor laws which are well enforced. No child under fifteen years of age can be employed for hire while the schools. of the town in which the child resides are in session. In December 1922 there were but 274 children in the entire State under sixteen years of age working for hire, a remarkable record for a population of 768,014 people. During the past twelve months business throughout the State has shown marked improvement. There is little unemployment, and industrial and other workers seem reasonably contented. We are more fortunate than many other states in being remarkably free from what are termed "labor troubles," and in this connection Maine has an enviable record for maintenance of law and order and for the respect that is shown the rights of persons and property. The injured workman today, under the liberal provisions of our Workmen's Compensation Law, is better cared for than ever before. It is estimated that in 1922 5000 employers and 150,000 employees came under the provisions of this act, and that more than $1,000,000 was paid to injured men and women. "Blue Sky" Law The State has a law, ably administered by our Banking Department, requiring the registration of dealers in securities. This is popularly called the "Blue Sky" Law. In former years any promoter with a wildcat stock selling scheme could come to Maine and fleece our citizens of their savings. I suppose in many of our counties there are almost enough beautifully engraved worthless stock certificates of oil, land, gold and silver mining and other companies to paper the walls of this Capitol. Today to a considerable extent our citizens are protected from these frauds and during 1922 new promotions with capital totaling $104,000,000 were refused admission to our State. It should not be understood that the State in any way guarantees securities sold by dealers registered under this law. The Bank Commissioner makes careful inquiry as to the personal and financial standing of the applicant for a license, looks up his past record and satisfies himself that the proposition to be sold is apparently an honest one. Notwithstanding the considerable protection this law affords, investors cannot be too careful, for there are many securities on the market in Maine that are far from being high grade or desirable. The importance of our Banking Department is appreciated when it is realized that it has direct supervision over $279,143,757.82 of the people's money. The Library Our State Library is overcrowded and the last Legislature authorized the Governor to appoint a committee to prepare plans to meet this situation, either by enlarging the Capitol or by erecting a new building. As this was left to the discretion of the Chief Executive, I have taken no action because the condition of the State Treasury did not warrant the necessary |