agency and the civil service provisions of the Constitution should be applied to the appointment and promotion of such employees, as a condition precedent to the further receipt of state aid.

PUBLIC HEALTH

The best methods of preventive medicine and public hygiene should be adopted by the State and the civil divisions thereof. Germ diseases may be classed as preventable diseases, particularly those that are caused by the contamination of the water supply. All sources of public water supply should be examined and analyzed by the State Commissioner of Health as rapidly as possible and at frequent intervals. The private water supply of public resorts should also be subjected to state analysis and the results should be made public. I recommend that the Legislature devise a system of state inspection of domestic water supplies, to be maintained at the cost of the municipalities, corporation and private owners affected thereby.

The growing demands for additional water supplies in the greater cities and for adequate supplies of pure and wholesome water for domestic purposes in other municipalities indicate that in the not distant future the problem of water supply for municipalities will be a most serious one. It seems doubtful whether all centres of population can continue indefinitely to rely upon a natural supply of pure and wholesome water without recourse to artificial methods of purification. The question presents itself whether it is not feasible to develop some plan whereby the municipalities may be insured a water supply at a minimum cost under state supervision through state conservation of the waters of the Adirondacks and other sources. The Legislature of 1904 enacted a law creating a water storage commission which has for its object practically the con

servation of water for power purposes. A State commission, having also for its object the supply of water to the cities might be of great service.

FISH, GAME AND FORESTS

The forests and streams of the State should be made attractive places of resort for the invalid and for those in search of wholesome recreation in the open air. To this end the fish, game and forest laws should be strict and consistent. The preservation of the wilderness and the restocking of the waters of the State with food fish, and the protection of game, should, in my judgment, be encouraged, not only for the benefit of our own people, but for the purpose of attracting to our State the ever-growing army of sportsmen and pleasureseekers.

The policy of the State towards the extension, preservation and control of the Forest Preserve demands careful attention, and I shall at some later date communicate to you by special message my recommendations on that subject, whereby I hope to be able to outline a more comprehensive and consistent treatment than would be proper within the limits of this message.

UNITED STATES DEPOSIT FUND

The Comptroller in his report of 1903 states that, "This 46 trust fund under the State Finance Law is included with the common school and literature funds as a part of the education fund, by Article IV. of that statute, but is managed pursuant to provisions applied to no other fund or class of "investments for public moneys, with results and tendencies "so unsatisfactory that a change of method seems imperative "for the preservation of the fund and for the advantage of

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"the citizens entitled to the benefits contemplated by the

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original acts under which the money was accepted by the "State."

The United States Deposit Fund is distributed in the care of 122 loan commissioners, two in each county. It is loaned on real estate mortgages on improved lands worth double the amount applied for, exclusive of buildings. With the lapse of sixty years the benefits to be derived from distributing loans of small amounts in remote districts have become legendary and the method proves to be antiquated, expensive and inefficient for the purpose. During the past fiscal year the fund suffered a diminution from losses on foreclosure of mortgages, and other causes, of $169,312.73. The law requires that transfers be made from the general fund to maintain the principal of this fund intact. The annual net income from the fund for the year ending September 30, 1900, is stated by the Comptroller to be less than .2 of one per cent. The average net rate of interest on loan commissioners' mortgages since the year 1895 is 2.2 per cent. During the same period the net rate of interest received on municipal bonds held by the Comptroller is 3.75 per cent. At the close of the year 1902 the State owned approximately 18,000 acres of land acquired through foreclosure of loan mortgages, upon which the rents collected for that year were less than one per cent. of the cost of the land to the State. The acreage from this source is constantly increasing, much of it unsalable or only to be disposed of at heavy loss. The tendency appears to be that this trust fund will become an annual charge upon the taxpayers, instead of an aid, unless some remedy is provided. I therefore recommend that the present system of investments be changed and that the fund be held and managed under the supervision of the Comptroller's office in some such man

ner as the common school fund and literature fund now are held and managed.

TENEMENT HOUSE LAW

The Court of Appeals has finally upheld the constitutionality of the only part of the Tenement House Law of 1901 which has been contested in the courts. This measure is one not only of charity, but also of justice; not only for the benefit of the poorest families, but also for the general welfare of the community. For its enactment and enforcement my predecessor is entitled to the highest credit. The law is now definitely established. Large sums of money have been expended under it, and it would seem to be of the utmost importance that no change should be made in it except where the necessity therefore is apparent.

PRESERVATION OF PLACES OF SCENIC AND HISTORIC INTEREST

The preservation of historic objects or picturesque places in the State should be encouraged. The beautiful and wonderful features of natural landscape should be protected from disfigurement, and places and objects identified with the history of the State should be saved from obliteration. It does not seem necessary that the State should expend large sums of money for this purpose, but it should aid by legislation, whereever possible, the protection of natural scenery and encourage the work of those associations which are organized for the purpose of commemorating historic events and marking points of historic interest. Legislation which seeks to promote the improvement of cities and villages by the adornment of their parks and thoroughfares, and which compels the removal of the unsightly and disfiguring from public places, should be enacted.

LOUISIANA PURCHASE EXPOSITION AT ST. LOUIS

New York State participated with success in the great exposition which has just closed at St. Louis. The exhibits of the State received suitable recognition in the awards made by the exposition authorities. The grand total of awards to this State was 559. The supremacy of the State in many of the departments in which exhibits were made was demonstrated. The work of the commissioners was performed with zeal and discrimination and reflects credit upon the State.

I desire to renew the recommendation of my predecessors, that laws, so far as possible, be general in their application and that the unnecessary multiplication of statutes be avoided. The Constitution of the State in terms prohibits many classes of special acts and the spirit of the Constitution and of our institutions demands the application of the principle of equal rights to all and special privileges to none.

I commend to your thorough study the reports of the various departments which are about to be submitted to you. They contain much that is of high value and great interest to the student of governmental affairs. It is impossible in the limits of this message to extract therefrom more than the broadest generalizations. The work of the departments is in a satisfactory condition and the reports of the heads thereof are thorough and exhaustive.

FRANK W. HIGGINS