California owing, as she does, her very existence to the soldiers now seeking this aid, should be just if not liberal in bestowing it, and any proper constitutional bill introduced in the Legislature should, in my opinion, receive favorable consideration at your hands.

YOSEMITE VALLEY.

The report of the Commissioners and Guardian appointed to manage the Yosemite Valley and the Mariposa Big Tree Grove will be found exceedingly interesting. The labor performed during the past year in making accessible to the tourist the beauties and grandeur of this wonderful creation, has been eminently successful. The steady increase of visitors is indicative of the interest manifested by the lovers of the sublime and beautiful. Every effort has been, and is being made, to make the Valley free to visitors, and to prevent the extortion to which, until a very recent date, they were subjected. A continuation of the appropriation is recommended for these purposes, and every facility that can be given the Commission to insure success in their efforts should be willingly acceded. I recommend the report for especial consideration.

CAPITOL COMMISSIONERS.

The Board of Capitol Commissioners deem it unnecessary to render a separate report, but submit in this office for your inspection their books, vouchers, and accounts.

The State Printing Office is in a most excellent condition, and will compare most favorably with the printing establishment of any private institution in the State. It reflects much credit upon the able Superintendent and his assistants, who have so faithfully administered the trust.

The grounds of the Capitol Park have been attentively cared for by the efficient State Gardener, and present a very attractive and beautiful appearance. The plan presented by the State Engineer for the improvement of the East Park of the Capitol Grounds should be carried to completion, and a small appropriation for the purchase of trees, shrubbery, etc., should be made. I would also respectfully recommend that a sufficient sum be appropriated to construct a Freer stone sidewalk around the entire outside of the park; the present wood walk is in a very dilapidated condition, and is constantly requiring repairs.

The Board, on two different occasions, advertised for bids to complete the iron and granite fence around the Capitol, as provided for in the bill passed at the last session of the Legislature. The lowest bid received exceeded the appropriation for this purpose by several thousand dollars, and being unwilling to leave a deficiency to be provided for by the Legislature, they again invited separate proposals for each branch of the mechanical work called for, and the Prison Directors were asked to furnish the granite from the Folsom Prison quarries at a nominal price for the benefit of the State. Several hundred tons have been delivered on the grounds, and the Warden reports that the quarry is now developing a fine body of stone, which will furnish unlimited quantities of the coping, as well as the largest stones required for the entrances to the grounds. A double advantage has thus been gained for the State-the fence is going on to completion at small cost, and the great value of the State quarry has been

demonstrated, as the granite is of the finest quality, and in inexhaustible quantity.

I would also recommend that an appropriation be made to continue the present line of fence around the entire Capitol Park. It has cost, including concrete base, granite coping, and iron fence, and exclusive of the entrance piers, but ten dollars per lineal foot. It is in harmony with our magnificent Capitol, and is as substantial and durable as granite and iron can make it.

At the last session of the Legislature one thousand eight hundred dollars was appropriated for the improvement in the ventilation of the Capitol building. Nearly all of this sum remains unexpended for the reason the Commissioners deemed it inexpedient to make the radical change that had been contemplated in the arrangements of the closets.

RECOVERY OF MONEYS FROM THE UNITED STATES GOVERNMENT.

Information having been received by me that the expenses incurred by this State, and by the citizens of Siskiyou and Modoc Counties, for the suppression of Indian hostilities during the Modoc Indian War of 1872, had never been reimbursed by the General Government, I appointed Captain John Mullan, at Washington City, D. C., to represent said interest, on behalf of this State, before the proper authorities of the United States, for the purpose of securing such reimbursements, and also, for such as were provided for (for California) under the Act of Congress, approved June 22, 1882, authorizing an examination and adjustment of the claims of the States of Kansas, Nevada, California, Oregon, Colorado, Nebraska, and Texas, for repelling invasion and Indian hostilities therein, between April 15, 1861, and June 22, 1882. Since writing the above, I have just been informed by telegraph that success has attended Captain Mullan's efforts, and that the Modoc war bill, reimbursing the State, has passed both houses of Congress.

In addition to the foregoing, I also received information that many of the States intended to petition the General Government for the return of moneys paid by some of them in part, and by others in whole, of the sums assessed to the several States under the Act of Congress, approved August 5, 1861, to pay the interest on the public debt, and for other purposes. The amount assessed to this State, under said Act, was two hundred and fifty-four thousand five hundred and thirty-eight dollars and sixty-six cents, which sum has been paid; but a few of the States have paid their assessments in full, others but a portion, and some of them not anything. Equity would demand that all or none should comply with the law.

Deeming the subject of considerable importance, and that the interests of the State required an agent to act in her behalf, with others employed in obtaining an equitable adjustment of these claims, I also authorized Captain Mullan to represent the State before the proper authorities at Washington, and would recommend that these appointments be ratified and confirmed by you, and that you provide for his compensation, to be paid out of the sums he may recover for the State, contingent, however, upon his success, it having been expressly understood that such compensation should be left entirely to your judgment and discretion.

Under an appointment from Surveyor-General Wm. Minis, subject to legislative ratification, Captain Mullan, during the last four

years, has endeavored to secure for California five per cent of the net proceeds of the sales of the public lands in this State, and has already made considerable progress in the same; and it is to be hoped before another Congress shall have adjourned that California may be placed upon an equal footing with all the other public land States in regard to this grant.

I invite your favorable attention to the report of Surveyor-General Shanklin touching this subject, and to the recommendations by him made in regard thereto.

RAILROAD COMMISSION.

For the results showing the utility of the Railroad Commission, I must refer you to the report of the Commissioners, which will be presented to you at an early date, it being at present in the hands of the printer. It came to me too late to review its workings. It is a voluminous document, and doubtless contains all the information on the subject which the Constitution intended they should investigate, with such suggestions and recommendations as their experience and study would deem necessary for your consideration.

CALIFORNIA FISH COMMISSION.

It is with great pleasure that I am able to report a rapid and permanent growth in our fish industry. Those directly engaged in the business of fishing and canning are at least beginning to appreciate the benefits of our laws and restrictions, passed through the intervention of the Fish Commission, permitting the fish to proceed to their natural spawning grounds unmolested.

A much larger appropriation is needed to properly carry on this industry. With an additional appropriation of $5,000 per annum, small hatcheries could be established on several of our minor streams, and thus artificially stock our waters with myriads of fish, at a nominal expense, which would result not in twelve or fifteen canneries in our State, but a hundred or more. With the present annual appropriation of $5,000, the Commission is barely able to hatch, at San Leandro and on the McCloud River, sufficient fish to keep up the annual catch on the Sacramento, and supply the requests of our sister States.

Further and more stringent laws are necessary to prevent the wholesale destruction of young fish by Chinese and other fishmen in our bays. There should be heavier penalties for violation of each of the now existing restrictions.

The Hon. B. B. Redding, the promoter of this Commission, and who devoted many years in bringing it to the high standard it now enjoys, was suddenly taken from us by the hand of death. He was a man of remarkable ability; self-taught, he was self-reliant; honorable in his dealings with his fellow man, he possessed the courage to maintain and defend what he believed to be right and just; his fidelity was never doubted, his generosity never vainly invoked; the purity of his life and the integrity of his principles are well worthy of imitation. In honor to his memory, and as a tribute of respect and gratitude for the valuable services rendered by him, in various capacities, to the State, I appointed on this Commission his son, Joseph D. Redding, whose tastes in this direction are in keeping with those of his esteemed father.

Of the amount allowed as appropriation for the Special Contingent Fund of this office for the thirty-first fiscal year, there remains unexpended the sum of one thousand four hundred and eighty dollars.

The amount allowed for the thirty-second fiscal year was all expended and a balance of five hundred dollars left over in the thirty-third fiscal year.

The examination into the managment of the State Prison at San Quentin, the investigation of certain charges of fraud in the construction of the seawall by the Board of Harbor Commissioners demanded my notice, and no other methods of compensation being available the expenses were paid from such fund. Among the claims presented for services performed in the latter inquiry, was one from Calvin Brown, Esq., a civil engineer of repute, whom I engaged to aid our State Engineer in his scientific investigations. This claim is for "thirty-two days' services in investigating Seawall and Harbor of San Francisco, nine hundred and sixty dollars." I paid Mr. Brown three hundred dollars and informed him I would transmit his claim for further adjustment to your honorable body. I must here acknowledge the efficient services rendered in this investigation by Professor Frank Soule, of the State University, who generously placed his time at my disposal, and for which he has never asked any remuneration.

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At the session of 1880, a resolution was passed authorizing the Governor to cause to be prepared for the information of the ensuing Legislature a statement of the unpaid indebtedness of the several Swamp Land Districts organized by the State Board of Swamp Land Commissioners. In accordance therewith, I appointed Messrs. Dun-1 can Beaumont and Edward Twitchell, both gentlemen well known for their eminent fitness for such examination. An Act was introduced at the last session for payment of their services, but press of other business prevented its passage. I, therefore, paid the same from this fund; I also paid certain expenses attending the recovery of moneys due this State by the General Government.

CIVIL SERVICE REFORM.

The people are recognizing the truth that the affairs of the Government should be conducted on business principles. That offices are intended for a purpose other than for rewards for party services or individual ambition. Congress, impelled by this public opinion, has just demonstrated that the wishes of the people should meet with some consideration from their hands, and the passage of an Act regulating the civil service of the country is the fruit of their demands.

It may, and probably will be said, that officials retiring from office can well afford to be generous in expressions of sympathy for themselves, and ask in return why they have not practiced in office that which they condemn on leaving it.

While I may not have carried out this desire in every instance where my appointing power was exercised, I certainly have inaugurated the system to an extent that should convince any unprejudiced or partisan individual of my convictions as to its true policy.

In the appointment of our State and District Boards of Agriculture and of the Viticultural Commission, I have endeavored to equally divide them among both of the great political parties, and in the State Board this rule has been further carried out by the election of a Secretary whose political faith was adverse to the party in power. The State Board of Health and of the Insane Asylums have all been represented by members of opposite political opinions. The offices of State Engineer (the most lucrative office in the State) and that of his Secretary, for which there were many applicants, were left untouched, for the reason that I believed the interests of the State would suffer by a change, and that the work begun by the present efficient Engineer should be completed by him. In the selection of the Commissioners under the Drainage Act, and Commissioners to manage the Yosemite Valley, I was influenced by like motives, and appointed a Board selected for their qualifications from among the different political parties, and this action has been carried out in every public institution where the appointing power was vested in me.

CONCLUSION.

With this communication ends my official term, and that power which three years ago was given into my keeping by the people of the State, I transmit to my successor, one of its most eminent and worthy citizens; one who, in times of peril and danger served his country faithfully and well. His summons to the highest civil position within the people's gift is a due appreciation of his past services in their behalf, and a recognition that Republics are not ungrateful. That his elevation to this exalted position will be fraught with every good to the State is the earnest belief of every good citizen.

I acknowledge with a thankfulness that language is inadequate to express the courtesy, fidelity, integrity, and zeal, which has characterized every department of the State Government, and every institution under its control or supervision. To them I am indebted for any success attending my administration; our associations have been most pleasant, and our relations most amicable.

To the people of the State of California, for the honors conferred upon me, for their kindly manifestations at all times and under all circumstances freely extended me, I here avow my most grateful thanks. Large hearted, liberal minded, firm in their friendship, constant in their affections, I ask no greater honor than to be known and numbered among them as a fellow-citizen.

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