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PROCLAMATION BY THE GOVERNOR CONVENING THE LEGISLA-
TURE IN EXTRAORDINARY SESSION.
Now, THEREFORE, I, James N. Gillett, Governor of the State of California, by
1st. An Act to add a new section to the Political Code of the State of California
2d. To amend section ten of the Political Code, sections ten, one hundred and
3d. To approve a proposed amendment to the Charter of the City and County of
4th. To approve a proposed amendment to the Charter of the City and County
5th. To approve a proposed amendment to the Charter of the City and County
6th. To approve a proposed amendment to the Charter of the City and County
7th. To provide for expenses incurred by the Adjutant-General during the
8th. To remove Andrew M. Wilson from the office of Railroad Commissioner,
9th. To amend section five of the Act entitled “An Act to provide for the issuance
10th. To appropriate money for the contingent expenses of the Governor's office.
IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed
J. N. GILLETT,
Governor of the State of California.
Secretary of State.
The following resolutions were offered:
Resolved, That the Senate do now organize and proceed to elect the officers and employés of the Senate for this extra session.
Resolution read and adopted.
Resolved, That Hon. Edward I. Wolfe be and he is hereby elected President pro tem.
AYES-Senators Anderson, Anthony, Bates, Bell, Black, Boynton, Broughton, Caminetti, Carter, Curtin, Greenwell, Hartman, Keane, Kennedy, Leavitt, Lukens, Lynch, Markey, McCartney, McKee, Nelson, Price, Rambo, Reily, Rolley, Rush, Sanford, Savage, Walker, Welch, Willis, Wolfe, and Wright—32.
Whereupon the President declared each person named in the foregoing resolution duly elected.
By Senator McCartney:
Resolved, That the Standing Rules of the thirty-seventh regular session be and the same are hereby adopted as the rules of the Senate at this special session, except that Paragraph VIII be amended to read as follows:
“VIII. The standing committees of the thirty-seventh regular session shall be the standing committees of this extra session.”
AYES-Senators Anderson, Anthony, Bates, Bell, Black, Boynton, Broughton, Cami-
Resolved, That the Secretary of the Senate is hereby directed to notify the Assembly that the Senate is now duly organized and ready to proceed to the business of the State, having elected the following statutory officers:
President pro tem.--Edward I. Wolfe.
Resolved, That a committee of three Senators be appointed by the President of the Senate to notify the Governor of the organization of the Senate, and that the Senate is now ready for business and to receive any communications he may have to make.
Resolution read and adopted.
APPOINTMENT OF COMMITTEE TO WAIT UPON GOVERNOR. In compliance with the above resolution, the President of the Senate appointed Senators Wolfe, Lukens, and Curtin as such committee.
At ten o'clock and twenty-five minutes A. M., on motion of Senator Leavitt, the President declared the Senate at recess until ten o'clock and thirty-five minutes A. M., of this day.
At ten o'clock and thirty-five minutes A. M., the Senate reconvened.
Lieutenant-Governor Warren R. Porter, President of the Senate, in the chair.
REPORT OF COMMITTEE TO WAIT UPON GOVERNOR. MR. PRESIDENT: Your committee of three, appointed to wait upon the Governor, respectfully beg leave to report that they have informed him that the Senate is organized and is ready for business.
MESSAGES FROM THE GOVERNOR.
The following messages from the Governor were received, and, on motion of Senator Leavitt, were read and ordered printed in the Journal:
SACRAMENTO, November 19, 1907. To the Senate and Assembly of the State of California, convened in Special Session :
At the most urgent request of clearing houses, banking institutions, civic bodies, and many prominent business men from all parts of the State, I have called you together for the purpose of enacting certain legislation which is believed to be imperative because of the most unusual financial stringency existing to-day in the State, brought about by conditions existing in the East.
The specific purposes for which you have been called together appear in a proclamation issued by me on Friday, the 15th instant, copies of which will be placed before you.
Several of these purposes I desire herein to call to your special attention, and I ask your careful consideration of them.
It is very important that the finances of this State should reach a normal condition as speedily as possible, and there is every reason to believe that this will be so, if our people are patient and will view the situation philosophically and take no steps to embarrass the banking institutions of this State, that are now using every effort possible to restore confidence and to replace the reserves that for several months have been depleted by reason of the movement of crops and by the action of timid depositors who have withdrawn their money and hoarded it.
The country generally is very prosperous, our State is particularly so, and there is no reason why this prosperity should not continue. Legitimate business never was better. The farmers in every state have been blessed with large crops for a number of years, for which they have received good prices. All the wheels of industry are turning, trying to supply the enormous demands made upon them. All labor is employed at the highest wages ever known and the merchants have been enjoying a large trade. There is no poverty in the land, yet in the midst of plenty, and apparently on a most solid basis, and with more money in the country and a larger per capita than we ever enjoyed before, the nation finds itself in the throes of a money panic.
It is quite evident that there must be some cause for this condition of affairs, and it is found in the extravagant living, wild speculation, the effort to get rich quickly by giving nothing for something, the frenzied finance of the stock and bond manipulators of Wall Street, and the attempt, dishonestly and by misrepresentation, to float all manner of enterprises upon a sea of water. These are the things which have been mostly, if not entirely, responsible for the present financial stringency, and it is only the unparalleled prosperity, distributed among the masses, that saved us from financial ruin.
Our banking laws need to be amended so as to afford better protection to the depositor. The large trust companies and corporations doing an interstate business should be placed under Federal supervision and subject to Federal laws, and if there is no authority for this under the present Constitution, then the Constitution should be amended so as to grant such power.
I suggest that the Legislature appoint a committee to investigate the methods of doing banking business in this State, and to report thereon at the next regular session, together with such recommendations and changes in the law as such committee may deem necessary.
To-day our banks have large balances due them from the East, amounting to millions of dollars, which have accumulated there by reason of the movement of our crops to that market. Most of this money should, in the due course of business, have been paid by this time, but because of the financial conditions existing in New York and other Eastern cities, our bankers are unable to secure the balances due them, payment having been temporarily refused.
This, together with the fact that for several months large sums have been withdrawn from the banks and hoarded, had greatly depleted the cash reserve which the banks usually carry, and with which the business of our State is carried on. The effect is that money can not be secured with which to pay the first installment of taxes without reducing the reserves to such an extent as to seriously imperil our financial, commercial and industrial interests, thereby jeopardizing the business of the State. In fact, many who have depended upon the banks to supply money to pay taxes can not pay their taxes at all. Unless some relief is granted the delinquent list will be large, and many of our citizens will suffer a heavy penalty, and so much money will be taken out of circulation at a time when none can be spared as to threaten the very business prosperity of the people. This relief can come by enacting a law authorizing the Governor, during a great financial stringency, to issue a proclamation extending the payment of taxes for a short period of time. Such a bill will be presented to you for your consideration and I desire you to give it your most earnest attention.
The financial conditions have been such that it was necessary to declare legal holidays in order to protect our business interests. Other states for the same reason have also declared holidays. While it has been necessary and wise to declare them, still the business of the courts has suffered and there has resulted loss and great inconvenience to many of our citizens. It is possible to declare holidays to protect our financial and commercial interests and still leave the courts open to dispatch a large variety of necessary business. Therefore the law should be amended so that during holidays declared by a proclamation issued by the Governor the courts may remain open for the prosecution of all criminal actions and proceedings; to conclude any action pending and on trial; in all suits for injunctions; to quiet title to real property; for partition; condemnation proceedings; forcible entry and detainer or unlawful detainer ; replevin; ejectment; divorce; probating of estates of deceased persons, and many other matters not necessary to mention.
This change of our laws Ideem very necessary, and I trust the Legislature will pass suitable legislation to that end. The law as it now applies to regular and fixed ħolidays should remain as it is, the change being made only in reference to what may be termed special holidays declared by the Governor's proclamation.
Ševeral proposed amendments to the charter of the City and County of San Francisco, which were ratified by the qualified electors of said city at a recent election held therein, will be submitted to you for your approval. One of such amendments is of particular importance to the city, and relates to the issuance and sale of bonds for municipal improvements, and in view of the great need of such improvements in San Francisco, it is very important that this amendment should be approved by the Legislature.
Among these improvements of which San Francisco is urgently in need are: an auxiliary water system for fire protection and for sanitary and flushing purposes ; construction and repair of its sewer system; the construction of a city and county hospital; the repaving of accepted streets; the reconstruction of school houses destroyed by fire and earthquake; the construction of a new City Hall, Hall of Justice, and other public buildings. The estimated cost of these improvements amounts to about $28,000,000, and the money to build the same must be raised by a bond issue. The necessity for making these improvements alone is sufficient to warrant the calling of an extra session of the Legislature, and I apprehend that there will be no doubt in your minds about approving this amendment as well as several others which will be submitted to you.
At the last general State election A. M. Wilson of San Francisco was elected to the office of Railroad Commissioner from the Second District. Mr. Wilson has, on several occasions, confessed to having received bribes while a public officer, and today an indictment stands against him for committing the very crime for which he stands confessed. The Constitution provides that the Legislature may, by a twothirds vote, remove a Railroad Commissioner for dereliction of duty, or corruption, or incompetency. In the proclamation convening this special session, your attention has been called to Mr. Wilson. He is charged therein with corruption and incompetency, and you are requested to investigate the charges. The procedure is left to you, and I have performed my duty by calling your attention to the matter and requesting an investigation at your hands. I feel confident that if you find the charges to be true you will have no hesitancy in pronouncing a proper verdict.
I trust that you will take up as speedily as possible the several matters set forth in the proclamation calling this special session, and act upon the same.
It is very
desirable that the session should not continue longer than is necessary and that every effort be made to keep down expenses to the minimum.
J. N. GILLETT,
Governor of California. Also:
EXECUTIVE DEPARTMENT, STATE OF CALIFORNIA,
SACRAMENTO, November 19, 1907. To the Senate and Assembly of the State of California : I have just received the following:
“November 18, 1907. " To the Hon. JAMES N. GILLETT, Governor of California:
“SIR: I hereby tender my resignation as a Railroad Commissioner for the Second District.
"ANDREW M. Wilson." I immediately accepted the resignation, and have so advised Mr. Wilson. In my judgment, further proceedings 'looking to the removal of Mr. Wilson from office, are unnecessary.
J. N. GILLETT, Governor.
At ten o'clock and fifty-five minutes A. M., on motion of Senator Leavitt, the President declared the Senate at recess until two o'clock and thirty minutes P. M., of this day.
At two o'clock and thirty minutes P. M., the Senate reconvened.
Lieutenant-Governor Warren R. Porter, President of the Senate, in the chair.
APPOINTMENTS BY THE PRESIDENT OF THE SENATE.
The President announced that, by the authority vested in him, he had appointed the following as Porters and Pages:
Porters—George W. Mercer, W. Gamble, C. T. Needham, and M. Levy.
APPOINTMENTS BY THE SECRETARY OF THE SENATE.
To the Officers and Members of the Senate of the State of California:
I have the honor to inform you that I have this day appointed J. W. Kavanagh and F. Cox to the positions of Assistant Secretaries, and respectfully ask the consent of the Senate thereto.
LEWIS A. HILBORN,
Secretary of the Senate. On motion of Senator Leavitt, the Senate consented to the above appointments by the Secretary of the Senate.
APPOINTMENT BY SERGEANT-AT-ARMS OF THE SENATE.
1o the Officers and Members of the Senate of the State of California:
I have the honor to inform you that I have appointed H. P. Travers, Bookkeeper to the Sergeant-at-Arms, and respectfully ask the consent of the Senate thereto.
J. LOUIS MARTIN,
Sergeant-at-Arms. On motion of Senator Leavitt, the Senate consented to the above appointment by the Sergeant-at-Arms.