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PROCLAMATION BY THE GOVERNOR CONVENING THE LEGISLA-
TURE IN EXTRAORDINARY SESSION.

STATE OF CALIFORNIA,

EXECUTIVE DEPARTMENT.

WHEREAS, An extraordinary occasion having arisen, and now existing, requiring
the Legislature of the State of California to convene;

Now, THEREFORE, I, James N. Gillett, Governor of the State of California, by
virtue of the power and authority in me vested by section nine, article five, of the
Constitution of the State of California, do hereby convene the Legislature to meet
and assemble in extraordinary session at Sacramento, California, on Tuesday, the
nineteenth day of November, Anno Domini one thousand nine hundred and seven,
at ten o'clock A. M. of that day, for the purpose of enacting laws and taking legisla-
tive action upon the following subjects, to wit:

1st. An Act to add a new section to the Political Code of the State of California
relating to the postponing of the collection of payment of taxes, the postponing of
delinquency for non-payment of same, the postponing of penalties, forfeitures, or
fines for non-payment of the same, the postponing of entry of penalty for such
delinquency, the postponing of time of preparing delinquent lists for unpaid taxes,
and the duties of all persons and public officers in connection therewith in the event
of general financial stringency.

2d. To amend section ten of the Political Code, sections ten, one hundred and
thirty-four, and one hundred and thirty-five of the Code of Civil Procedure, and
section seven of the Civil Code, in reference to legal holidays, by providing for special
holidays which may, by proclamation, be called by the Governor, and declaring what
judicial acts may be performed by the courts during the continuance thereof.

3d. To approve a proposed amendment to the Charter of the City and County of
San Francisco, State of California, ratified by a majority of the qualified electors
thereof, at a general election held in said city on Tuesday, November fifth, nineteen
hundred and seven, amending Sections 10 and 12 of Article XII and Section 29 of
Article XVI of said Charter, relating to bond issues, et cetera.

4th. To approve a proposed amendment to the Charter of the City and County
of San Francisco, State of California, ratified by a majority of the qualified electors
thereof, at a general election held in said city on Tuesday, November fifth, nineteen
hundred and seven, amending Section 2 of Chapter III of Article IV, relating to
the custody by the treasurer of public funds, and authorizing their deposits in certain
banks upon certain terms and conditions.

5th. To approve a proposed amendment to the Charter of the City and County
of San Francisco, State of California, ratified by a majority of the qualified electors
thereof, at a general election held in said city on Tuesday, November fifth, nineteen
hundred and seven, amending Chapters 7, 8, 4, and 3 of Article IX thereof, relative
to the composition of the personnel of the companies of the Fire Department and
the salaries and vacations of the members thereof.

6th. To approve a proposed amendment to the Charter of the City and County
of San Francisco, State of California, ratified by a majority of the qualified electors
of said city, at a general election held therein on Tuesday, November fifth, nineteen
hundred and seven, amending Section 1 of Chapter V of Article VIII and Section
1 of Chapter VI of Article VIII, relative to salaries of members of the Police
Department.

7th. To provide for expenses incurred by the Adjutant-General during the
months of May, June, and July, nineteen hundred and seven, arising and growing
out of the labor troubles and strikes in the City of San Francisco, and to pay mem-
bers of the National Guard for services rendered at that time.

8th. To remove Andrew M. Wilson from the office of Railroad Commissioner,
on the ground of corruption and incompetency on the part of the said Wilson.

9th. To amend section five of the Act entitled "An Act to provide for the issuance
and sale of State bonds to create a fund for the acquisition by the Board of State
Harbor Commissioners of a necessary area for a tidal basin for wharves, piers,
harbors, and appurtenances in the City and County of San Francisco; to create a
sinking fund for the payment of said bonds; and defining the duties of State officers
in relation thereto; making an appropriation of one thousand dollars for the expense
of printing said bonds; and providing for the submission of this Act to a vote of
the people," approved March 21, 1907, relating to the redemption of such bonds
and creating a sinking fund for such purpose, and adding a new section to said
Act relating to the publication of said Act, and providing for the payment of the
cost of publication of the same.

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
hereunto the Great Seal of the State of California, at my office in the State Capitol,
at Sacramento, this fifteenth day of November, in the year of our Lord the one
thousand nine hundred and seventh, and of the admission of the State of California
the fifty-seventh.

[SEAL.]
ATTEST:

C. F. CURRY,

Secretary of State.

J. N. GILLETT,
Governor of the State of California.

RESOLUTIONS.

The following resolutions were offered:

By Senator Leavitt:

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.
By Senator Willis:

Resolved, That Hon. Edward I. Wolfe be and he is hereby elected President pro tem. of the Senate. That Lewis A. Hilborn be and he is hereby elected Secretary of the Senate. That J. Louis Martin be and he is hereby elected Sergeant-atArms of the Senate. That G. Ray Horton be and he is hereby elected Minute Clerk of the Senate. That Rev. C. H. Darling be and he is hereby elected Chaplain of the Senate.

Resolution read.

The question being on the adoption of the resolution.

The roll was called, and the resolution adopted by the following vote: 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.

NOES-None.

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."

Resolution read.

The question being on the adoption of the resolution.

The roll was called, and the resolution adopted by the following vote:

AYES-Senators Anderson, Anthony, Bates, Bell, Black, Boynton, Broughton, Caminetti, 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.

NOES-None.

By Senator Wright:

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.

Secretary of the Senate-Lewis A. Hilborn.

Sergeant-at-Arms-J. Louis Martin.

Minute Clerk-G. Ray Horton,
Chaplain-C. H. Darling.

Resolution read and adopted.

By Senator 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.

RECESS.

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.

RECONVENED.

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. WOLFE, Chairman.

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:

GOVERNOR'S MESSAGE.

EXECUTIVE DEPARTMENT, STATE OF CALIFORNIA,
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 I deem very necessary, and I trust the Legislature will pass suitable legislation to that end. The law as it now applies to regular and fixed holidays 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.

Several 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.

Also:

J. N. GILLETT, Governor of California.

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. "Yours respectfully,

"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.

RECESS.

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.

RECONVENED.

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.
Pages--J. Diggs, Wallace Strait, Miller McBride, and Carlton Pierson.

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,

On motion of Senator Leavitt, the Senate appointments by the Secretary of the Senate.

Secretary of the Senate. consented to the above

APPOINTMENT BY SERGEANT-AT-ARMS 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 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.

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