used in connection therewith, should be met by fees and charges collected for services performed, which fees and charges should be fixed at no higher rate than is necessary to nieet such expenses.

The inauguration of such a system, it is believed, would insure an efficient administration in this important department, relieve the tax payers of the State from present burdens and subserve the interests of the commerce of the port.

HARBOR MASTERS.

In my last annual message the attention of the Legislature was called to the fact that the fees then collected by the harbor masters at the port of New York had been declared by the Supreme Court of the United States to be illegal, and that such fees were, notwithstanding, still collected under the guise of voluntary payments made for the services of those officers. It was also suggested that such services might be intrusted to the Department of Docks in connection with its other work, and thus the commerce of the port be relieved from any charge for the same. This suggestion was not adopted, but a law was passed allowing the Governor to appoint, by and with the advice and consent of the Senate, a captain of the port and eleven harbor masters, and abolishing those offices as they previously existed. The captain of the port, under the new law, was to receive a salary of $3,500, besides certain expenses, and the harbor masters were to receive a salary of $2,500 each, to be paid from the State treasury.

It was claimed that the office of harbor master was necessary, and that the Department of Docks should not be invested with their duties. Though the argument in its favor did not appear conclusive, and though the payment of the expenses of these officials by the State seemed very objectionable, the bill was approved because it seemed to be the only attainable method to relieve the State from complicity in the blackmailing and extortionate methods of the prevailing system.

An effort to execute this law failed through the refusal of the Senate to act upon the nominations made to the offices which were created. I am now entirely satisfied that the Department of Docks can well perform the duties heretofore devolved upon harbor masters without expense to the State, and with little, if any, additional cost to the city of New York.

It appears from statements made to me that this service has been assumed by this department and substantially performed under its direction during the past season.

I recommend the repeal of the law remaining unexecuted, being chapter 357 of the Laws of 1883, and all other laws by which the office of harbor master was created or is in manner recognized, and the transfer of the duties heretofore performed by harbor masters to the Department of Docks.

PILOTAGE.

The fees allowed to pilots should undoubtedly be reduced. The

law under which they are now collected was passed in 1865, and permitted a very large addition to previous rates on account of the great increase in living expenses. It was then distinctly understood that such increase should be allowed for only three years, and the law so provided. The operation of the statute has been extended from time to time until all limitation has disappeared. Repeated efforts have been made to have the fees reduced by law, but they still remain a danger which cannot longer be concealed, to the supremacy of the port and the prosperity of the State. Representations made to me by both the commercial interests affected and the pilots, leave in my mind not a shadow of doubt that it is the duty of the Legislature, in the interests of the State, to regulate these fees so that they will cease to be, as now, higher than at other ports in this and foreign countries. The suggestion is made by the pilots that the extortion is mitigated because the high rates are paid by foreign instead of domestic ship owners. This idea is in direct antagonism to the considerations involved in the creation and maintenance of the commerce of a State, and betrays an entire misconception of the important interests with which the occupation of a pilot is related, and upon which its existence depends. When it is found that the number of pilots remain about the same as when the fees were enlarged; that the tonnage entering the port has increased immensely; that steamships have been largely substituted for sailing vessels and consequently the services of the pilots are more quickly and easily performed; that the reason of the increase in fees, originally intended as temporary, has failed, and that the commerce of the port needs relief, sufficient reasons are apparent for a modification of the present law on this subject.

THE RAILROAD COMMISSION.

The law passed in 1882 creating a Board of Railroad Commissioners was made operative during the last year, and the board was organized on the 1st day of February, 1883.

Since that time they have done a vast amount of work of a character which demonstrates the need and usefulness of such a department, and with results which are creditable to the zeal, fidelity and intelligence of the Commissioners.

The operations of the Board will not be here specifically detailed, more than to touch upon some facts deemed of general interest contained in the report of the Commissioners, which will soon be laid before the Legislature.

During the eight months between the organization of the Board and the 30th day of September, 1883, seventy-five complaints were preferred, all of which were fully investigated. Some of these involved a thorough examination into the financial affairs and history of large railroad corporations, while others had reference to the comfort and safety of passengers and citizens as related to the operations of the roads. Many recommendations have been made to the railroad companies, calculated to protect the people in life and limb, most of which have been cheerfully adopted.

Of the six thousand five hundred miles of railroad in the State, all have been inspected by some members of the Board, or by a competent engineer employed for that purpose. When defects have been discovered, the company operating the road has been at once called on to remedy the same. The companies have generally evinced a desire to co-operate in every effort to secure the safety of travel.

Much attention has been given to the investigation of accidents on railroad, their causes and the means to prevent their recurrence. Every accident occurring in any part of the State has been reported promptly to the Board.

The following is the record of those killed or injured in the operation of the railroads in this State, for the eight months ending September 30, 1883:

Killed. Injured.

As a number of the persons who were neither passengers nor employees were killed or injured at crossings, an inquiry instituted by the Board, in relation to railroad crossings, developed the following facts:

Number of public traveled highways and streets crossed by grade by railroads in the State

6, 881

Number of such crossings in cities and villages

1, 825

Number of crossings where the view of approaching trains is obstructed from those traveling the highway, when within

one hundred and fifty feet of the crossing on either side.. 1,576 Number of gates at highway crossings, including thirty six on the Long Island Railroad.

53

Number of flagmen employed

Number within that time killed or injured at crossings protected by gates or flagmen.

Number of persons killed or injured at crossings during the last five years...

650

264

119

The question of freight rates on railroads has been considered by the Board, in connection with a bill referred to them by the last Senate involving that subject, and a report will as soon as possible be submitted, which it is hoped will aid just and wise legislation regarding this question.

A number of laws and amendments to existing statutes will in due time be presented by the Board for the consideration of the Legislature. As these will be the result of intelligent reflection and inquiry, and will have relation to important interests, I trust they will receive careful attention.

The action of the Board in requiring the filing of quarterly reports by the railroad companies, exhibiting their financial condition, is a most important step in advance, and should be abundantly sustained. It would, in my opinion, be a most valuable protection to the people if other large corporations were obliged to report to some department their transactions and financial condition.

The State creates these corporations upon the theory that some proper thing of benefit can be better done by them than by private enterprise, and that the aggregation of the funds of many individuals may be thus profitably employed. They are launched upon the public with the seal of the State, in some sense, upon them. They are permitted to represent the advantages they possess and the wealth sure to follow from admission to membership. In one hand is held a charter from the State, and in the other is proffered their stock.

It is a fact, singular though well established, that people will pay their money for stock in a corporation engaged in enterprises in which they would refuse to invest if in private hands.

It is a grave question whether the formation of these artificial bodies ought not to be checked or better regulated and in some way supervised.

At any rate they should always be kept well in hand, and the funds of its citizens should be protected by the State which has invited their investment. While the stockholders are the owners of the corporate property, notoriously they are oftentimes completely in the power of the directors and inanagers, who acquire a majority of the stock, and by this means perpetuate their control, using the corporate property and franchises for their benefit and profit, regardless of the interests and rights of the minority of stockholders. Immense salaries are paid to officers; transactions are consummated by which the directors make money, while the rank and file among the stockholders lose it; the honest investor waits for dividends and the directors grow rich. It is suspected, too, that large sums are spent under various disguises in efforts to influence legislation.

It is not consistent to claim that the citizen must protect himself, by refusing to purchase stock. The law constantly recognizes the fact that people should be defended from false representations and from their own folly and cupidity. It punishes obtaining goods by false pretenses, gambling and lotteries.

It is a hollow mockery to direct the owner of a small amount of stock in one of these institutions, to the courts. Under existing statutes, the law's delay, perplexity and uncertainty leads but to despair.

The State should either refuse to allow these corporations to exist under its authority and patronage, or acknowledging their paternity and its responsibility, should provide a simple, easy way for its people whose money is invested, and the public generally, to discover how the funds of these institutions are spent, and how their affairs are conducted. It should at the same time provide a way by which

the squandering or misuse of corporate funds would be made good to the parties injured thereby.

This might well be accomplished by requiring corporations to frequently file reports made out with the utmost detail, and which would not allow lobby expenses to be hidden under the pretext of legal services and counsel fees, accompanied by vouchers and sworn to by the officers making them, showing particularly the debts, liabilities, expenditures and property of the corporation. Let this report be delivered to some appropriate departinent or officer, who shall audit and examine the same; provide that a false oath to such account shall be perjury, and make the directors liable to refund to the injured stockholders any expenditure which shall be determined improper by the auditing authority.

Such requirements might not be favorable to stock speculation, but they would protect the innocent investors; they might make the management of corporations more troublesome, but this ought not to be considered when the protection of the people is the matter in hand. It would prevent corporate efforts to influence legislation; the honestly conducted and strong corporations would have nothing to fear; the badly-managed and weak ought to be exposed.

THE CIVIL SERVICE.

During the year the provisions of the act passed by the last Legislature to regulate and improve the civil service of the State have been put into operation. Fortunately a commission was secured whose members were in hearty sympathy with the principles of the law and who possessed much practical knowledge of the needs of the public service. The commission itself was also fortunate in obtaining the services of Silas W. Burt as chief examiner, whose experience in public affairs and familiarity with the best methods of regulating the civil service enabled him to render invaluable assistance to the commission and the State. The preliminary classification and the framing of rules, contemplated by the act governing the appointments to place, having been completed and received my approval, the system will become operative in respect to all State officers and in all State institutions on the fourth day of the present month. This work, owing to the diversity of the State service and the number and variety of positions affected by the law, has been a task attended with many difficulties. Although some slight revision may be necessary, on the whole I am confident the scheme will be found practical and effective, without being too rigorous or burdensome.

In addition the commission has co-operated with the mayors of cities who, under the law, have exclusive control of the municipal service, and in several cities, notably. New York and Brooklyn, a thorough system of civil service has been prepared and promulgated as nearly in harmony with the State system as the charters and statutes relating to municipal matters will permit.

New York then leads in the inauguration of a comprehensive