ssessment of 1882 shows a decrease below that of 1880 of fifty-five illion one hundred and fifty-eight thousand one hundred and five ollars, and below that of 1881 of eighteen million eight hundred and eventy-nine thousand five hundred and sixty-four dollars. These gures are exclusive of railroad assessments, and are shown for the urpose of calling the attention of the Legislature to the necessity of eeding the recommendations of the Board for some amendments to he Code by which it can more readily enforce its powers. Somehing must be done to check the tendency of Supervisors to reduce ssessments, and of Assessors to undervalue, in the struggle to take vantage of the State.

The Board succinctly states the history of the litigation in which he State is involved in respect to the taxes due by the several raiload companies assessed by the Board. Most certainly, in view of he doubt cast upon the validity of section three thousand six hundred nd sixty-four of the Political Code, that section ought to be renacted so as to place the matter beyond a peradventure. The Board seems to take the position, that as the Supreme Court of this State has decided that the clause of the Constitution which gives life à the Board is self-executing, that a provision of the statute requirng notice to the several railroad companies of the time when the Board would meet and assess their property would be nugatory, and hat a provision of the Constitution is necessary. Without pausing to discuss the necessity of a constitutional amendment, I deem it but an act of wise forethought for the Legislature in reenacting section three thousand six hundred and sixty-four, to provide in such section that the Board shall, between certain days, meet at the Capitol and assess the properties of such railroad companies as the Constitution provides shall be assessed. By this means the companies would at least have statutory notice, and if the Constitution is not amended, the question would be narrowed down before the Courts whether such statutory notice is sufficient. This much is offered in anticipation, either that the decision of the United States Supreme Court, in the case of the County of San Mateo vs. The Southern Pacific Railroad Company, may be delayed beyond the session of this Legislature, or that it may be rendered in favor of the defendant.

In case any amendments of the Constitution are submitted, due weight should be given the views of the Board in respect to enlarging its powers relative to increasing individual assessments and as to the description, in the Constitution, of the property of railroads to be assessed.

STATE PRISONS.

While the State has every reason to be satisfied with the management of its various departments and institutions during the past three years, it is with pride I submit for your attentive consideration the report of the Directors of the State Prisons. I most heartily concur in the language of the report, "that never in the history of our State has the whole management of our prisoners, and the financial condition of the prisons, been so satisfactory."

The labor and time employed and expended in accomplishing so successful a result is hardly to be estimated, and success is due

entirely to the assiduity, industry, and integrity of the gentlemen appointed to discharge the onerous and in many instances thankless duties of Directors.

The promise held out to the people two years ago, of making San Quentin self-supporting, is on the eve of realization, and I believe with the same earnest perseverance on the part of the Board in thể future continuance of their efforts, aided as they have been by the respective Wardens, the next session of the Legislature will see the item "for support of State Prisons" stricken from the General Ap propriation Act.

The daily cost of maintaining a prisoner, which includes subsistence, clothing, and pay of officers, has been reduced from fifty-three and one third cents in 1873, to thirty-two and one half cents in June, 1881, and a still further reduction is confidently looked for.

The success of the jute mill is now assured; not only are its products superior to the usually imported article, but our farmers can congratulate themselves that the "sack monopoly" is effectually destroyed.

The report is replete with valuable suggestions, many of which will require legislative sanction to be operative. I commend it to your thoughtful deliberation and careful discussion.

On March 14, 1881, Sec. 17 of the Act governing the State Prisons, approved April 15, 1880, was amended to read as follows:

SEC. 17. The Directors shall receive no compensation other than ten cents per mile for traveling expenses, and one hundred dollars per month for other expenses incurred while engaged in the performance of official duties.

This amendment passed both branches of the Legislature by an almost unanimous vote. It was the opinion of many able lawyers that it did not conflict with the constitutional article on State Prisons, and under that belief the bill received my approval.

The first claims for service rendered thereunder were presented in the usual form to the State Board of Examiners, who audited and allowed them; they were then transmitted to the Controller for his warrants of payment.

The question was then raised as to the constitutionality of the section, and the Board of Directors, on their own motion, requested the Attorney-General to take such action as might be deemed necessary to bring to a final judicial determination this vexed and annoying question.

This was done. Trial was had in the Superior Court of Sacramento County, and judgment was rendered in favor of the Directors; an appeal was taken to the Supreme Court, who reversed the judgment of the Court below and ordered a new trial. The Directors then appeared in Court, and upon payment to the Attorney-General, each for himself, the sums of money received in compensation for services as such Directors, the case was dismissed.

The Directors then presented to the Board of Examiners their claims for traveling and other expenses to which they were justly and lawfully entitled, under the provisions of Sec. 4, Article X, of the Constitution, incurred from January, 1880, to November, 1882. The Board again passed upon the claims and transmitted them to the Controller. That officer, by the advice of the Attorney-General, declines to issue warrants thereon, assigning as a reason that the

Legislature has not declared how such items should be audited as expressed in the constitutional article above cited.

These gentlemen have performed their duties ably, honestly, and zealously; they receive no compensation. The loss of time in the discharge of these duties, together with expenses which must unavoidably follow them, and for which there can be no remuneration, should cause your honorable body to immediately pass an Act by which they can receive actual expenses, and thus end the trouble and annoyance which these Directors have been compelled to undergo.

In connection with the affairs of the State Prisons, I would call your attention to the very heavy and onerous expenses attending the transportation of prisoners; this is a constantly increasing burden and demands examination, and if practicable, establishing of a less 1 expensive system. It appears to me, with the exception of a few of the counties situated at the extreme boundaries of the State, that the matter of sending prisoners to each of the prisons could be accomplished by the Sheriffs notifying the Wardens, who should detail a guard to convey them to their proper destination; this of itself would be a saving of several thousand dollars. Another source of expense could be remedied by compelling Judges to order prisoners transported to the prisons nearest the county seat. The Board of Examiners issued circulars to that effect to all of the Superior Judges, but apparently without effect.

PARDONING POWER.

Among the many responsibilities with which the Executive is held accountable, there is none weightier or of greater import than the exercise of the pardoning power. I approach this subject with diffidence, inasmuch as it is impossible to convey an impression of the solemn character of the duties which this power imposes. To be appreciated they must be experienced. In using this power I have in every instance been actuated by a sense of justice to both State and criminal. While my list of pardons and commutations may appear large, I feel satisfied they will, in every instance, be approved. None have ever returned who have been released; many I know are endeavoring manfully to struggle to regain character and assume honorable positions in life. I have been especially solicitous in behalf of the young confined in our prisons, and in many instances have procured permanent employment, and comfortable homes for several.

JUVENILE REFORMATION.

In a former message I alluded to the necessity of a State Reform School, or House of Refuge, where the criminal young of this State could be placed under such reformatory influences as would tend to their future moral correction, and fit them to become honorable and useful citizens. "To strike at the root of crime we must protect the children."

At a heavy expense we support our Penitentiaries, Jails, Houses of Correction, etc. These confine, and for a limited period lock up crime, but they do not reform criminals. What we desire is a public institution for the redemption of juvenile wrongdoers, conducted on the home or family plan, to which all convicted offenders under a certain age might be sent, to be classified according to disposition, character,

and the nature of the crime for which they have been convicted. N arbitrary rule should be established in classification, for that would strike at the fundamental idea of the enterprise, which should be the individualization of the pupil. Let him learn to acquire self-respect regularity of habits, start in his mind correct views of life, its possi bilities for himself, and let him comprehend and appreciate the utility as well as the nobility of labor. When the process has fairly begun and the disposition is in keeping with the teachings imparted, then send him out to acquire the "particular fitness" for a life pursuit amid the surroundings of actual life, subject, however, to the protection and surveillance of the administrative officers of the institution, under such regulations as may best conduce to his effectual reform ation.

Such an institution to be successful must not be political in its character. It should have at its head a man by nature and special education and experience peculiarly adapted to carry out its aims and intentions-the starting aright of young lives.

Massachusetts, Ohio, and Indiana have been successful beyond their most sanguine expectations in their systems of juvenile reformation. The Children's Aid Society of New York has worked wonders in this direction. The practical benefits which have been already developed in the success attending the Boys and Girls Aid Society of San Francisco is itself an evidence of what the State could do in this behalf. If you do not desire to try this work on a large scale, why not, through State aid and a Board appointed under its supervision, make this Society a nucleus for future and more enlarged work?

There is no subject which will be presented for your consideration of greater import than this-none demanding greater attention—view it in any aspect-morally, politically, socially, or financially. Establish a system of this character, and it will show results which will gladden the hearts of all good people-a steady and marked diminution of juvenile criminality, and the rampant "hoodlumism" which is the peculiar curse of this State, and which is giving us a criminal population of unprecedented magnitude, threatening the greatest danger to the well-being of society and the material prosperity of the State.

STATE BOARD OF HEALTH.

The report of this Board will acknowledge its usefulness and efficiency. Its sanitary and scientific investigations evince a thorough understanding of the subjects treated therein. The suggestions presented for legislative consideration are based on judgments practically obtained by years of experience and observation and merit your earnest attention.

I particularly recommend the enactment of a law regulating inland quarantine. The present statutes on quarantine are of a maritime character only. Our railroad system, extending now from New York on the one hand and New Orleans on the other, places within the reach of foreign immigrants an easy and rapid manner of communication between the States. If we can protect our seaports against the introduction of infectious and contagious diseases, why cannot the same power be exercised in protecting and guarding our inland cities and towns from these dreaded scourges?

The necessity of prompt action on this subject will be better

appreciated by directing your attention to pages fifty-three to sixtyone, and also to the article on "Railroad Inspection" of this report.

STATE HARBOR COMMISSIONERS.

The report of the Board of State Harbor Commissioners, herewith submitted, covers a period of two years, viz.: from July 1, 1880, to June 30, 1882, and gives a very intelligent view of the management of the State's great commercial trust by the Board.

The report shows that the monthly income for dockage and tolls have been thirty-six thousand four hundred and thirty-five dollars and thirteen cents, an increase per month, as shown by last report, of seven hundred and ninety-four dollars and fifty cents. Total income for the two years from said sources, eight hundred and sixteen thousand nine hundred and thirteen dollars and seventythree cents; cost of collecting the same, fourteen and eighty-five one hundredths per cent, two per cent less than reported two years ago, but still very excessive.

A remedy for this outlay was proposed by the Commission, and they prepared a bill which was introduced at the last session by Senator Traylor; it, however, failed to become a law. I respectfully but urgently recommend the passage of the bill referred to or one of similar import.

SEAWALL.

According to the report there is now built four thousand five hundred and sixty-one feet of seawall, at a cost of one hundred and ninety-six dollars and fifteen cents per lineal foot-eight hundred and ninety-four thousand six hundred and seventy-one dollars and fifty-six cents. During the process of building the seawall referred to, various reports reflecting on the official management of the work became current, so that I deemed it my duty to appoint an expert to investigate the same.

I appointed Mr. Lauren E. Crane, a gentleman of marked ability and experience. He submitted his report January 14, 1881. It was a very clear and elaborate exhibit. It entirely exonerated the Commissioners who had directed the construction of the various sections of the seawall, of any wrongdoing, but at the same time contained such facts and figures as seemed, in my judgment, to call for further investigation by professional and competent engineers. In pursuance of such conviction of duty, I appointed, September 1, 1881, Mr. Wm. Ham. Hall, State Engineer, Calvin Brown, Esq., Civil Engineer of the Mare Island Navy Yard, and Mr. Frank Soule, Jr., Professor of Engineering at the State University, to constitute a Board for the purpose of such examination. The Board, so constituted, on the twentieth of January, 1882, submitted a very able and exhaustive report, and to it, as well as to the report of the expert, you are most respectfully referred. If the suggestions and recommendations made by the Board of Engineers and expert are adopted by the Commission in the letting of future contracts for the construction of the seawall, the investigation will have resulted in great benefit to the State.

In further consideration of the harbor front of San Francisco, you will notice that by building the seawall on the contour adopted by the Commissioners, numerous blocks of land are reclaimed from the