MESSAGE TO THE LEGISLATURE

BY

JOHN PATTERSON

GOVERNOR

STATE OF ALABAMA

TUESDAY, MAY 5, 1959

MONTGOMERY, ALABAMA

Samford University Library

Samford University Library

MESSAGE OF

GOVERNOR JOHN PATTERSON

TO JOINT SESSION OF

THE ALABAMA LEGISLATURE

AT REGULAR SESSION

MAY 5, 1959

Lt. Governor Boutwell, Mr. Speaker, Members of the Joint Ses­sion of the Alabama Legislature:

As directed by the Constitution of the State of Alabama, the Governor is charged with the duty at the commencement of each regular session of the Legislature to communicate to the Legisla­ture by message information of the condition of the State and recommend such measures as he shall deem expedient.

Before discharging this duty, I would like to say that it is an honor and a privilege for me to appear before a joint session of the Legislature again. As Chief Executive of the S tate I wish to extend a warm greeting to you, and I wish to again congratulate you on your elect ion or re-election to the Legislature. Your presence here as a member of this august and historical body is a splendid personal tribute to your ability to be of service to the people of your community and state.

I wish to again express my gratitude to the citizens of our state for the high honor that they have bestowed upon me by electing me to the office of Governor and for the confidence that they have expressed in me and in my program. Throughout my administration my every thought and every action will be moti­vated by a desire to do only that which will best serve all the peo­ple of Alabama. I want nothing personal for myself. I do want us to be able to look back upon this administration in years to come and be able to say that the Patterson administration was the best administration the state ever had, and be able to look back upon our work with pride and satisfact ion.

I wish to again express my deep appreciation to you for the cooperation and assistance that you have given me and my admin­istration since I took office January 20th of this year . I appre­ciate the many pledges of continued coopera tion that I have re­ceived. I wish to commend you for the excellent work that you accomplished during the recent special session and I appreciate your support and passage of the sixty million dollar revenue bond issue for highway construction. As you know, you enacted our road program into law without a dissenting vote and in record

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time. You are deserving of the highest credit for the splendid manner in which you conducted the business of the Legislature during the Special Session. I also wish to express my apprecia­tion to the members of the Interim Committees on Finance and Taxation and Revision of Laws for the splendid work that they have accomplished during the in terim period between adjourn­ment of the special session and up to the beginning of this session. The members of these interim committees assisted by the other members of the Legislature have worked hard to formulate con­structive and progressive legislation which will be presented to you during this session. They are deserving of the highest credit for the service they have rendered to the people of this state. The interim committees have worked closely with me in formulating appropriation bills and other legislation and I am grateful for their cooperation and assistance. Time will show that the fine work of the interim committees will save us untold hours of labor during the regular session and save the taxpayers considerable money.

You and I are faced with serious responsibilities. We must discharge our duty to the people of this state in such a manner that it will benefit the welfare of all our citizens. I pledge to you my wholehearted support and cooperation and I know that by working together during the next four years we will make our state a better place in which to live and bring credit upon our­selves and our people.

I am pleased to report to you that all the departments of the state government are operating smoothly and efficiently with few exceptions. We have instituted on all levels a program of efficiency and economy. We ar e cutting out non-essential pro­grams. We are eliminating waste. We ar e adhering strictly to the competitive bid laws. We are seeing that things purchased by the state are needed and we are seeing that we are getting what we pay for. We are seeing that the property of the state is used in a legal and proper manner so as to bring the greatest benefit to our citizens. I am pleased to report that we are making tre­mendous progress with th is program and I feel certain that we are going to be able to save the taxpayers of this state millions of dollars a year which heretofore has been wasted and thrown away.

The people demand that we put an end to the waste of their tax money and they demand a full dollar's worth for every tax dollar spent. This was one of the main planks of my platform during my race for Governor. This administration is committed to this policy and will carry it out to the letter .

The people expect and demand of the state government cer-

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tain services and the demand for these serv ices increases daily. We must continue to give the people the services they expect and pay for. We must not curtail essential services under the mis­taken guise that it constitutes economy. If we do so, we will de­feat our own purpose. We must improve the efficiency of the state government so as to provide more and better services for our citizens. I do not want an administration that has the repu­tation of being miserly with its funds. I wan t an administration with a reputation of being honest, progressive and efficient, and one that provides the services the people expect. I want the reputation of being a builder. I want to build h igh ways, build schools, pay better old age pensions, bring new industry to Ala­bama, improve the conditions of our hospitals, prisons and other state institutions, and do the other things that a progressive ad­ministration ought to do. You can sum up the goal of my ad­ministration in two words-progress and efficiency.

FINANCE

Our laws prohibit us from spending more than we take in. Our budget must be balanced. I want to assure you that through­out my administration our expenditures will be kept well within our revenues at all times. The budget that I will recommend to you will be balanced. The recommendations that I will make to you will provide adequate educational oppor tunities for our children, increased assistance to our aged citizens, and services which will aid and encourage the growth and prosperity of our state.

General Fund

At the close of this fiscal year, September 30, 1959, there will be a balance in the General Fund of approx im ately $1,500,000.00. The anticipated revenues coming into the General Fund for 1959-60 will be approximately $36,602,500.00, m aking a total amount available in the General Fund for 1959-60 of $38,102,500.00. I will recommend a budget to you calling for appropriations for 1959-60 from the General Fund of $36,602,500.00. If this recommended budget is followed by you, we will have a balanced budget and have a balance in the General Fund at the end of the year of $1.-500,000.00. The anticipated revenues coming into the General Fund for 1960-61 will be approximately $38,964,000.00, and with the balance of $1,500,000.00, which will be in the General Fund on September 30, 1960, makes a total amount available in t he Gener­al Fund for 1960-61 of $40,464,000.00. I will recommend a budget to you calling for appropriations from the General Fund for 1960-61 of $38,964,000.00. If this recommendation is followed by you, we will have a balanced budget and have a balance in the Gen-

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eral Fund at the end of the year of $1,500,000.00. It is absolutely essen tial that a balance of at least one and a half million dollars be maintained in the General Fund at all t imes to meet current obligations of the State. This practice is sound and has con­sistently been followed for many years.

As you know, I have heretofore submitted my recommended appropriations from the General Fund for the next biennium to the Interim Committee on Finance and Taxation which was set up by you to operate during the interim between the recent Special Session and this Regular Session. The Interim Commit­tee conducted extensive hearings on my recommended budget and made several changes in my recommendations by increasing the appropriations to some departments and decreasing them as to others. The appropriation bill reported favorably by the Interim Committee did not change the total amount that I rec­ommended for the next biennium and I concurred with the com­mittee on the changes and agreed to go along with them. The recommendations that I will make to you for appropriations for the next biennium from the General Fund will be identical to those approved by your Interim Committee on Finance and Taxation and I urge you to enact these recommendations into law without amendments.

Special Trust Funds

As you know, cer tain revenues taken in by the state are "ear­marked" to be expended by certain departments for specific purposes. Of course the law requires that these special trust funds be appropriated by the Legislature before they can be expended.

I will submit a budget to you setting forth my recommenda­tions for appropriat ion of these trust funds for the next bien­nium. The budget that I will recommend will be balanced and the amounts recommended well within our anticipated revenues. I heretofore presented these recommendations to the Interim Committee on Finance and Taxation and after numerous hear­ings your committee r eported favor ably my requested appropria­tions covering these trust funds with only one minor change. I agreed to this change and the recommended appropriations I will submit to you pertaining to these trust funds w ill be the identical appropriation for said funds which were approved by your Interim Committee. I urge you to enact these recommenda­tions into law without amendments.

Special Educational Trust Fund

The anticipated r evenues coming into the Special Educational Trust Fund from all taxes now in existence for the year 1959-60

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w ill be approximately $119,938,500.00, and for the year 1960-61 will be $126,463,250.00. I will recommend to you a budget calling for appropriations for education from the Special Educational Tr ust Fund in the amount of $161,938,500.00 for the fiscal year 1959-60 and $168,463,250.00 for the fiscal year 1960-61. My rec­ommendations constitute an increase of $42,000,000.00 more per year than is expected to come in from presently enacted r evenue measures. In order to provide the additional funds necessary to meet my recommendations, I recommend that the Legislature en­act the following measures:

1. A 3% sales tax on the sale of all new and used automobiles and trucks. This measure can be enacted by statute and it is anticipated that such a measure would bring in approximately $17,350,000.00 per year.

2. A 3% gross privilege license tax on all construction con­tracts in excess of $25,000.00. This measure can be enacted by statute and it is anticipated that such a measure would bring in approximately $15,500,000.00 per year.

3. A constitutional amendment increasing the income tax on corporations from 3% to a maximum of 5% and providing that such tax be on the same graduated scale as that of individuals. This measure must be submitted to the people for a vote and if it passes it is anticipated that it would bring in an addit ional $4,-850,000.00 per year.

4. A constitutional amendment lowering the personal income tax exemption from $1,500.00 per single person to $1,000.00 and from $3,000.00 per married couple or head of household to $2,-000.00. This measure must be submitted to the people for a vote and if it passes, it is anticipated that it would bring in an addi­tional $4,650,000.00 per year. In view of the fact that two of the above revenue measures recommended require a vote of t he peo­ple, I will recommend to you two budgets for education. One will be an "absolute" recommendation which will be based on the an­ticipated revenues from presently enacted laws together with anticipated revenues from the afore-recommended revenue meas­ures which can be enacted by statute, and the other will be a "conditional" recommendation which will include all the recom­mendations included in the "absolute" recommendation, plus the anticipated revenues from the afore-recommended constitutional amendments. The "conditional" recommendation is necessary due to the necessity of submitting the two constitutional amend­ments to a vote of the people.

I heretofore presen ted these recommendations to your Inter im Committee on Finance and Taxation and the committee gave con­siderable study to my proposals along with proposed measures

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advanced by others. The committee gave favorable consideration to my recommendation to increase the appropriation for educa­tion by $42,000,000.00 per year for the next biennium. The com­mittee gave favorable consideration to my recommendation that a 3'c gross privilege license tax be levied on all construction contracts in excess of $25,000.00 but the committee changed my recommendation so as to exempt the first $25,000.00 of all con­struction contracts from payment of the license. This change would result in reducing the anticipated revenues to be derived from the passage of this measure by approximately $700,000.00 per year.

The committee gave favorable consideration to my recom­mendation to increase the income tax on corporations from 3% to 57c , and my recommendation to lower personal income tax exemptions. The Interim Committee reported out favorably my recommendation to place a 3% sales tax on the sale of all new and used automobiles and trucks; however, the Committee in its report recommended that certain alternatives be consid­ered. One alternative consisted of a proposal to increase the cost of the automobile license and registration fees to the cost of such license and fees in 1951. It is estimated that such a measure would bring in approximately $8,000,000.00 more per year. It should be noted that before any funds derived from the increase in the cost of licenses and registration fees for automobiles could be used for educational purposes a constitutional amendment would be required and the measure would have to be submitted to the people for a vote. Another alternative was a proposal to eliminate sales tax exemptions on heavy machinery. It is esti­mated that such a measure would bring in an additional $18,000,-000.00 per year. Another alternative consisted of a proposal to levy a 3% tax on all advertising in newspapers, magazines and on the radio and television. Another alternative consisted of a proposal to increase the tax on liquors and wines.

I respectfully request that you give serious consideration to the recommendations that I have made and also give careful consideration to the alternatives which have been proposed by your Interim Committee. I have not had ample time since re­ceiving the recommended alternatives of the Committee to study them in complete detail. However, I assure you that if you pre­fer to pass revenue measures for education other than those I have recommended, I will give them careful consideration and if they are fair, just, and reasonable, I would not veto them. In my opin­ion the additional $42,000,000.00 per year for education is vitally needed and the Interim Committee agreed with me on that. I strongly urge you to enact into law my recommendations for the raising of the additional $42,000,000.00 per year.

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The proposal has been advanced by some that the state sales tax should be increased from 3% to 4% to meet the needs of education. The Interim Committee considered this but turned it down. I , too, am opposed to increasing the sales tax. The sales tax is too high already. Such an increase would not be in the best interest of the state and such a measure would place an un­reasonable burden on the working man who is already heavily burdened with taxes.

Revenue Bond Issue for School Construction

I recommend the enactment of a law authorizing a revenue bond issue for school construction in the amount of $75,000,000.00 with $25,000,000.00 to go to institutions of higher learning and $50,000,000.00 for elementary and secondary school construction. I recommend that $200,000.00 be allotted to each county in the state out of the $50,000,000.00 for school construction, and that the remainder of the $50,000,000.00 be allotted on a 50-50 match­ing basis, based on a teacher-pupil unit basis. I further recom­mend that local school boards be authorized to pay debt service on prior bond issues out of the $200,000.00 allotted, where such bond issue is not more than three years old. I submitted this recommendation to the Interim Committee on Finance and Taxa­tion and the Committee reported favor ably on it. I will include recommendations for appropriations to finance this revenue bond issue in the budget that I will submit to you. My recommenda­tions for appropriations from the Special Educational Trust Fund heretofore set out will include sufficient funds for the financing of this $75,000,000.00 revenue bond issue for school construction. I recommend that the State Building Commission be authorized to administer the school construction program contemplated by this $75,000,000.00 revenue bond issue.

Homestead Exemption

I recommend that the Constitution be amended so as to in­crease the amount of the homestead exemption for ad valorem taxes from $2,000.00 to $5,000.00. I believe that the homestead exemption is too low and that it would be equitable to increase the homestead exemption at this time so as to give our home owners some propery tax relief. This amendment would cost the state approximately one million dollars per year in ad va­lorem taxes and must be submitted to the people for a vote.

Bills have been drawn to implement the recommendations that I have made to you and the bills will be introduced at this session.

Ad Valorem Property Taxes

As you know, Alabama law specifies that real property be assessed at 60% of the fair and reasonable market value. In many

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instances, we have found assessments much higher than 60%. More often, we have d iscovered assessments at only a small frac­tion of the actual market value. Moreover, there is a widespread variance within and between counties in the assessing of proper­t y. This, of course, results in favoritism toward some and dis­crimination toward others.

The State Department of Revenue is undertaking an impartial and equitable program of ad valorem tax equalization. We hope to effect this u niform tax program with all property owners shouldering their fair share of taxes and no more. To aid in car­rying ou t our equalization program, we are asking an additional appropriation for the Department of Revenue, and this increase is included in our budget request.

The ad valorem tax, as you know, is a method of distributing the cost of government in proportion to the value of the property protected by the government. Alabama's ad valorem tax is also a boon for local self-government. Our equalization program will result in a substantial increase in revenues to the state, w ith m ore than 90% going directly to the county and municipal gov­ernments to be used locally. This, in my opinion, will go a long way toward solving the long-range problems of school financing. Also, it w ill enable the local communities to participate more and more in projects of local interest. The Alabama Education Commission, after months of exhaustive study, recolTh'llended in its report that a realistic program of property tax equalization be undertaken and that the Department of Revenue be strength­ened for that purpose.

EDUCATION

As you well know, we now have an emergency existing in our school system. The schools are faced with a financial crisis. We desperately need many new school buildings, additional class­rooms and other facilities. We must provide higher pay for our teachers. We must stand up and meet this challenge head-on or see our school system go under. We owe it to our children to face this problem realistically and solve it. I have heretofore set out my recommendations t o you which I think will substan­tia lly solve the educat ional problem in this state. There is no question about the need-everybody recognizes that. Again, I strongly urge you to enact into law the recommendations I have made to you for educa tion. I hereby call upon you and all the citizens of this state who are interested in good schools and in educating their ch ildren, t o stand up with m e now and be count­ed. There are forces at work in this state who for their own self­ish gain and personal motives are working night and day to pre-

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vent us from doing anything for education. Beware of these people.

I recommend the enactment of a law r equiring that all mem­bers of the State Board of Education be elected by a vote of the people. One member of the State Board should be elected from each Congressional District. I further recommend that the State Board of Educat ion be authorized by law to appoint the State Superintendent of Education. Under any law it should be pro­vided that the Governor shall serve as ex-officio chairman of the State Board of Education. I recommend this because I feel that the State Board of Education which is charged with administer­ing the state education system and with setting our educational policies should be closer to the people.

I further recommend the enactment of a law placing our state colleges under the control of Boards of Trustees if they are not now under Boar ds of Trustees, with the exception of the negro colleges. I make this recommendation because I see the need for further decentr alizing contr ol over our colleges due to con tinued attacks by r ace agitators to integrate the schools of the South. This decentralization will make it more difficult for these agita­tors to attack more than one college at a t ime. I feel that the negro colleges should remain under the control of the State Board of Education. You should also consider the advisability of placing the State Trade Schools under separate boards of trus­tees for the same reason. Recent attempts have been made by negroes to gain admission to the white State Trade School at Mobile. The member s of the boards of trustees for the state colleges should be appointed by the Governor for fixed and staggered terms and the Governor should serve as ex-officio chairman of the board in each case.

I want to reiterate my strong stand against the integra tion of the races in the public schools of this state. We all know that our people will not tolerate nor finance an integrated school. We r ealize our duty to pr ovide the best education we possibly can to both the white and negro students. We fully intend to provide each an equal education, but it must be separate. I will use every power available to resist any attempt by the federal gov­ernment or anybody else to force integration upon us, and before we submit to integr ation in any public school of this state, I recommend that we close that school. I am absolutely and un­equivocally opposed to any integration of the races, and before I would submit to it, I would scrap the public education system of this state and go to private schools. As long as the negro citizens of this state will work with us toward having good, equal, and segregated public schools for all of our children, I am willing to put my shoulder to the wheel and do everything within my

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capacity to provide good education for all our children. But, if they turn against us and try to force integration upon us, I am opposed to giving a single penny to the operation of an integrated school. I, therefore, recommend that you enact a law authoriz­ing the Governor to close any public school where federal forces are used to force integration in that school, and further author­izing the Governor to cut off all state funds going to any such school. This law should be supplemental and in addition to the other laws that are presently in existence authorizing the closing of public schools by local school boards. Such a bill will be sub­mitted to you during this session.

I wish to say this to the educators of our state-that you have an obligation to use the tax money that is appropriated to you in such a way as to get the greatest good out of every dollar for our people. You must take a long, hard look at yourself and your opera tions, and strip out any non-essential program that you might have, and eliminate all waste and overlapping. This money that is appropriated to you is hard to come by, and the needs of education are getting so great that the people are find­ing it difficult to finance your needs. Therefor e, if we expect to continue to meet the needs of education, within our capacity to do so, you are going to have to make every dollar count.

There exists a state of emergency in our education system and for that r eason I believe that we should give serious considera­tion to calling a special session of the Legislature to consider only the needs of education. I , therefore, recommend that you take prompt and immediate action in this regular session to pass the general appropriation bill for the next biennium. I strongly r ecommend that you enact the general appropriation bill as rec­ommended to you by your Interim Committee on Finance and Taxation without any amendments. After the general appropria­tion bill is enacted into law and you feel that we need a special session for education, if you will then recess this Regular Session, I will promptly issue a proclamation calling you into Special Session to consider matters pertaining to education only. It is necessary that the general appropriation bill be passed before a special session is called as it is imperative that w e know what the appropriations to the various state departments will be for the next two years so that we can lay out our programs and formulate our plans.

REAPP ORTIONMENT

As all of us know the Alabama Constitution requires the Legislature to reapportion its member ship on a population basis every ten years. It is to the dismay of a majority of our people that the Legislature has thus far been remiss in this duty. In

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my campaign for Governor, I strongly advocated a fair reap­portionment of the Legislature. My promise to work for this principle was hopefully received by our citizens.

The subcommittee on reapportionment of the Legislative Interim Committee on Revision of Laws reported to and obtained the approval of the whole committee of a bill calling for the necessary constitutional amendments to effect a proper reappor­tionment of the Legislature.

The dictates of good government, a decent respect for the principles of the democratic process, and the fond hopes of our people for half a century-compells me to earnestly solicit the enactment of this measure.

HIGHWAYS

The financial condition of the Highway Department is ex­cellent. There are sufficient revenues from present taxes coming into the Highway Department to finance our entire road program during my administration and leave the next administration that follows me in excellent financial condition. Our budget in the Highway Department provides adequate funds for maintenance, for 100% state construction and secondary road programs, for farm-to-market roads, and federal-state matching projects, in­cluding the interstate system. You au thorized the issuance of $60,000,000.00 of Highway Revenue Bonds at t he r ecent Special Session for federal matching purposes. On April 14th, we sold the first $20,000,000.00 of Highway Revenue Bonds at an interest rate of 3.40% which is an excellent rate and shows the soundness of our decision, and reflects the confidence that the public has in our administration. The last Highway Revenue Bond issue of comparable size which was issued during the last administra­tion was sold at an interest rate of 3.63%.

I want to assure you that we are going to issue these revenue bonds only as needed, always bearing in mind what is to the best interest of our citizens. I want to fur ther assure you that we now have and will continue to have throughout my adminis­tration an honest , efficient and economical administration of your Highway Department. The money available will be spent wisely and in the interest of all the people. We are eliminating waste and overlapping in the department and we are buying strictly ac­cording to the competitive bid laws. I guarantee to you that we will get a full dollars worth of roads for every dollar spent. I wish to further guarantee that every county, municipality and community in this stat~ will have a good r oad pr ogram during the next four years and will get their fair share of the road money available. The road program during the next four years will

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be the largest and most progressive that this state has ever seen. More than one half billion dollars will go into highways and roads during my administration. We are assured of a splendid program without any increase in taxes on our citizens and the next administration will be in good shape and will be able to carry on our program without any let-up or interruption. I am grateful to you for enacting our $60,000,000.00 highway bond issue into law and I know that you ar e going to be proud that you had a part in this fine road program.

PUBLIC ASSISTANCE

We have a splendid public assistance program in operation in this state. Our Department of Pensions and Security is op­erating smoothly and efficiently. Even though much progress has been made in this field, much r emains to be done. The bene­fits now paid to our aged citizens, blind, dependent children, or­phans and physically handicapped persons are w oefully inade­quate. It is our duty to adequately provide for these people. One of the leading planks in my platform for Governor was a pledge to increase the old age pensions to an average of $75.00 per month and substant ially increase the payments to the other recipients of public assistance. Our aged citizens who qualify for public assistance helped in their younger days to make this state what it is and we cannot turn our backs on them now.

I will recommend to you in my budget request that you ap­propriate $6,921,255.89 from the General Fund for the Department of Pensions and Security for the year 1959-60 and $8,912,520.07 for the year 1960-61. My recommendation provides for an in­crease of $2,386,255.89 for 1959-60 and $4,377,520.07 for 1960-61 over the amount appropriated by the Legislature for the De­partment of Pensions and Security for the year 1958-59. This increase is fair and reasonable an d will make it possible for us to substantially increase benefits to our aged citizens and other recipients of public assistance. I urge you to adopt my recom­mendations for this department and I especially urge you not to reduce the appropriations to the Depar tment of P ensions and Security below what I have requested. If you do so, it will make it extremely difficult for me to comply with the wishes of the people in this regard.

It should be borne in mind that the major portion of funds ex­pended by the state for public assistance will be federal funds. During the fiscal year 1958-59 we expect to pay out approximate­ly $71,000,000.00 for public assistance th rough the Department of Pensions and Security, of which $54,000,000.00 comes from the federal government and $17,000,000.00 from the state.

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Taking into consideration the amount of money that I will request from the General Fund, the expected increase in "ear­marked" funds for public assistance, and recent favorable federal legislation, I feel confident that we are going to have one of the finest, most progressive public assistance programs during the next four years that this state has ever had.

LAW ENFORCEMENT

We have good law enforcement in the State of Alabama and it shall continue. I want to assure you that throughout my ad­ministration the laws of this state will be enforced in every com­munity, equally, fairly and impartially. There is no room in this state for the forces of organized vice and crime to operate and they will be stamped out promptly wherever they attempt to operate. The full weight of the State of Alabama will be brought to bear upon anyone attempting to engage in illegal activities in this state.

I am pleased with the operation of the Department of Public Safety. I think that our highway patrol is doing a splendid job and I am asking for substantial increases in appropriations from the General Fund to the Department of Public Safety so that we can increase the number of highway patrolmen and give our patrolmen needed salary raises. Everything will be done to further improve the morale and efficiency of the Department and we will push to the utmost a realistic program of traffic safety so that we can reduce the number of deaths and personal injuries on our highways.

Our Alcoholic Beverage Control Board is operating smoothly and efficiently and we will carry out in that Department a strong program of enforcement of our liquor laws.

During the time that I was Attorney General I experienced considerable difficulty in enforcing the state laws pertaining to foreign corporations doing business in the state which was main­ly due to difficulty in conducting investigations into their ac­tivities. I recommend the enactment of a law authorizing the Attorney General of the State to inspect and photostat the rec­ords of any corporation, foreign or domestic, doing business in this state. I have prepared such a bill and it will be submitted to you for your consideration. The Attorney General needs this authority in order to better carry out his duties.

We have experienced difficulty in requiring the attendance of out of state witnesses in criminal proceedings in this state. I recommend that you enact into law the Uniform Act to Secure Attendance of Witnesses From Within or Without a State in

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Criminal Proceedings which will materially assist our law en­forcement agencies in carrying out their duties. I have prepared such a bill and it will be presented to you for your consideration.

To further aid our law enforcement agencies, I recommend the enactmen t of the Uniform Act on Fresh Pursuit. This law will aid our law enforcement officers as well as law enforcement officers of other st ates in apprehending criminals who flee across state lines. I have pr epared such a bill and it will be submitted to you for your consideration.

DOCKS, HARBORS, AND INLAND WATERWAYS

I am pleased to report to you that the State Docks Department is again operating in the "black". In the month of March of this year the State Docks made a net profit of $87,324.44. The same month a year ago under the prior administration, the Sta te Docks Department showed a loss of $91,274.34. Thus far this year the department has made a net profit of $365,793.51, while last year during the same period, the Depar tment lost $5,679.42. There is no question bu t the port of Mobile is a money m aking business and if properly m anaged will pay its own way. We have put the State Docks Departm en t back on its feet and I assure you that it w ill remain that way throughout my adminis­tration.

During my administration we will continue to further expand and develop our state docks, harbors and inland waterways. It is my aim to construct inland dock facilities wherever possible and to complete those facilities now under construction. The> completion of these docks and further expansion and develop­ment of our facilities is essential to the continued growth and prosperity of our state.

Upon assuming office January 20th, 1959, we inherited a debt from the last administration in the State Docks Depar tment of approximately $1,800,000.00 for work performed and materials furnished for wh ich paym ent has not been made. There are no funds available to pay this deb t at the present time. As fa r as we can determine, at present, it is a legal obligation of the state. There are three u nfinished piers at the State Docks in Mobile which are deteriorating and will continue to deteriorate at an ever increasing rate if not completed. They must be completed as soon as possible. If completed they will be a distinct asset to the state and will eventually pay for themselves by enabling the port to handle mor e sh ipping. The inland docks facilities which were placed under construction during the last adminis­tration at Decatur, Huntsville and Florence are not complete and no funds exist at the present time to complete them. As you

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know, a constitutional amendment was passed in 1957 author iz­ing the sale of $10,000,000.00 in general obligation bonds for in­land docks development. By enabling act the Legislature au­thorized the sale of $3,000,000.00 of those bonds. The entire $3,000,000.00 was spent by the last administration, leaving no funds available at the present time for inland docks develop­ment.

It is not possible at this time for the State Docks Department to issue additional revenue bonds due to the statutory limitation of 4% interest placed on the sale of such bonds. In order to per­mit the issuance of additional revenue bonds for the completion of the piers and other development at the State Docks in Mobile I recommend that you amend the law by removing the 4% in­terest limitation on the issuance of revenue bonds by the State Docks Department. I further recommend that you pass an en­abling act authorizing the sale of an additional $3,500,000.00 of general obligation bonds to allow us to complete the inland dock facilities now under construction and to further develop our in­land waterways.

INSURANCE

I want to speak to you briefly about the insurance industry. As I see it, the problem is to maintain stability and public confi­dence in our insurance industry without unduly hampering the birth and growth of new companies or detering new investments in existing companies. I want the insurance business to grow with Alabama. Careful administrative supervision and enforce­ment of the law is the key to this. Our Insurance Department is doing a splendid job and will continue to do so. We are studying the present laws relating to insurance as well as the proposed new Insurance Code. We are examining our insurance laws with a view to seeing that they insure competent and experienced management, strong capital structure, sound investment policies, and responsible and qualified agents. We are making every effort to insure that the interests of policy holders, creditors, and shareholders are fully protected. I shall recommend measures to you during this session which will be designed to achieve these ends.

LABOR

I am a strong believer in and supporter of organized labor. I believe that we have good labor-management relations in the State of Alabama. Our Department of Labor is working con­tinuously to insure harmonious relations between the employers and employees. I will oppose the enactment of any law which is designed to injure or harass labor in any way, and I will not

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allow any law presently in existence to be used in such a manner as to injure organized labor. My administration is dedicated to serving the working man of the State of Alabama.

PROBATION AND PAROLE

I have recommended substantial increases in the appropria­tions from the General Fund to the Pardon and Parole Board for the next biennium. I strongly recommend that you adopt these recommendations. Our Pardon and Parole System is an integral part of our law enforcement program. We do not have a sufficient number of probation and parole supervisors working in the field. The case load handled by each supervisor at the present time is far greater than the case load of supervisors in most states in the nation, and due to this heavy case load the supervisor does not have sufficient time to do any real effective work in helping to rehabilitate the probationer or parolee. The increased appro­priation will enable the Pardon and Parole Board to employ addi­tional supervisors to work with the prisoners who are paroled or placed on probation to help them regain their position in society and become useful citizens. By taking this action we will make it possible to place many qualified and deserving prisoners on parole and probation, thus helping the prisoner, reducing the prison population, and reducing the cost to the taxpayer.

REGULATION OF SMALL LOANS

One of the most serious problems in our state is the flagrant violation by loan sharks of our usury laws. They prey upon the working man and his family. Their actions seriously injure the economy of the state. I have waged war against the loan sharks for four years as Attorney General. I have tried to enforce the usury laws through the courts, but have bogged down in endless litigation. We must do something to protect the borrowers and the answer does not lie in litigation. The answer to the problem lies in the Legislature and I hereby recommend that you enact at this session a law properly regulating the lending of money in Alabama. Any small loan law to be effective must have a clear and reasonable rate section, must prohibit all charges not spe­cifically allowed in the Act, must provide a criminal penalty for violation thereof, and it should provide that the lender forfeits all principal and interest if the law is violated, and further, the lender should be required to pay a reasonable attorney's fee to the borrower if the borrower is forced to defend himself against a usurious contract. A subcommittee of the Interim Committee on Revision of Laws headed by the Honorable Bob Gilchrist of Morgan County studied this matter at great length and submitted

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a proposed small loan regulatory law to the Committee and said proposal was adopted. This committee should be commended for its splendid work in drafting this small loan measure. It is a good law and I heartily recommend it to you. Let's not go home from this Legislature again until we do something about this small loan problem. It is absolutely imperative that we adopt at this session of the Legislature a good small loan law to protect the borrowers of money in this state. Hundreds of thousands of working people of this state who have been victimized by the loan sharks are looking to me and you to do something to help them. Now is our chance. Let's do our duty.

DEPARTMENT OF INDUSTRIAL RELATIONS

The Department of Industrial Relations with upwards of 1,000 employees is operating efficiently and is carrying for ward a good program in administering our compensation laws and in other aspects of Industrial Relations. However, to strengthen the effec­tiveness of the Industrial Relations Department, and to better serve the thousands of people over Alabama who look to this department for compensation benefits and other matters, certain laws governing Industrial Relations need to be changed. These changes are long past due and some of them are necessary in order to prevent the imposition on Alabama of Federal rules and Fed­eral standards, particularly in the unemployment compensation field. We need to increase the maximum weekly benefit amount of our compensation to unemployed per sons. We need to give our people a more realistic duration per iod for drawing their unemployment benefits. We need to shorten the waiting period between the time a person loses his job and the time he gets his first unemployment check. Changes in the Workmen's Compen­sation Law to better provide for injured employees also need to be made, as well as alterations in the Child Labor Law to better protect our young people. Bills embodying m y recommendations in all of these areas of Industrial Relations ar e being prepared for submission to you. I urge you to give them your best consider­ation so that your Department of Industrial Relations can more effectively do its job for the people of Alabama.

INDUSTRIAL DEVELOPMENT

It is essential to the prosperity of our people t hat we work hand in hand toward a balanced economy through the industrial development of our State. To this end, I promise an honest ad­ministration which will serve more than anything else to attract new industry to Alabama. Every effort will be made during the next four years to encourage new industry and business to

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come to Alabama and to encourage further expansion of local industry. In addition, I will ask the Legislature to enact several measures which are designed to streamline our industrial develop­ment program.

AGRICULTURE

In spite of our industrial progress, Alabama remains basically an agricultural state. I want to work closely with the Legislature in support of all measures which will provide a healthy climate in which our farmers can thrive and prosper.

I want to assure the farmers of this state that I will work night and day during my administration in their interest. Everything possible will be done to provide a market for the products that they raise and a fair and reasonable price for the things they sell so as to enable them to have a good life for themselves and their families.

CIVIL DEFENSE

In the perilous times in which we live, a strong civil defense progr am is imperative. It is only good common sense that we be prepared in case of disaster . If we don't have an effective civil defense program when we need it, then it will be too late. Our State Civil Defense Department is doing an excellent job in formulating a state-wide plan of Civil Defense for our protection. We ar e working closely with the federal government, which bears the brunt of the expense, in working out our civil defense pro­gram. We want to prepare ourselves now, while there is time, for any emer gency which may endanger our lives and well-being.

TOURISTS

Alabama, as you know, is a scenic state. We have picturesque mountains and valleys, rivers and lakes, and even the Gulf and snow-white beaches-colorful scenes which would delight any sightseer. More tourists ar e coming to Alabama every year, making the tourist industry all the more important. The tourist income for Alabama last year was some $120,000,000.00, and we are doing our best to increase this figure. Tourists in our state mean dollars in our pockets. Alabama has what it takes to attract tourists in ever increasing numbers, and we want to encourage more and more people to visit in our state.

ATOMIC ENERGY

The day is r apidly approaching when atomic energy will be converted to peace-time industrial uses. With the great benefits

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to our economy from this source of power will come many prob­lems as well. The thir teen southern states under the auspices of the Southern Governor's Conference have prepared an interstate compact providing for the development and regulation of atomic energy.

I recommend that you ratify this compact providing the Legis­lative framework in our state for the Atomic Age to come.

MILITARY

One of the first problems facing me as Commander in Chief of the Alabama National Guard was the reorganization of the Army part of the National Guard along Pentamic lines. This reorganization will enable the Guard in Alabama to conform to the same troop structure as the Regular Army, which completed its reorganization in the fall of 1958. This reorganization is now underway and our 14,000 Army Guardsmen will t rain this summer at their annual encampments under these new organizations. I am fully aware that this reorganization has not been done with­out a certain amount of upheaval and changes, which are always difficult, but I am pleased to report that we have a better Guard, a more modern Guard, and one better prepared to perform its mission.

CONCLUSION

Again, I pledge to you my wholehearted support and coopera­tion in all of your undertakings. We face at this time the greatest challenge and opportunity for service that has ever confronted any citizens of our state. We all know the problems that face us in Alabama. We have the skill, the intelligence and determina­tion to solve them. We must solve them in the interest of all of our people. We must always remember that we represent every individual citizen, and that the action that we take here affects the lives of ever y person in the state. We must not be motivated by the selfish aims and desir es of any particular region or group or interest- we must be motivated only by the desire to do that which will bring the greatest good to all Alabamians, no matter where they live or what they do.

Time does not permit me to r eport to you in detail on all the State Departments and state programs; however, I would like to say that every state department is exerting every effort to carr y out its duties in accordance with the law and to the best interests of the citizens of the state. Our departments are working together and cooperating with each other so as to enable us to have the best possible over-all state administration.

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I want to assure you that I am motivated by only one desire and that is to serve the people of my state to the best of m y ability. The members of my cabinet and staff feel the same as I. They too stand ready to work with you in every way possible. I want nothing personal for myself. All I want is to have an honest and efficient administration, and to be able to contribute toward building a greater Alabama. We should remember that we ar e writing four years in the h istory books of Alabama and we want it to be a good four years marked by outstanding progress. I want us to move ahead and accomplish great things and I want us to be able to look back in years to come and be able to say that the Patterson administration was an outstanding one.

I am certain that some of us will from time to time have honest differences of opinion, but I am equally certain that there will be no difference in our desire to do the best possible job for the state and its citizens.

Gentlemen, the time has come when we must put aside our personal ambitions and rise to the occasion as statesmen and dis­charge our duties and responsibilities to the people of Alabama without fear or favor. I have presented the problems that we face to you to the best of my ability. I have made recommenda­tions to you which I think will solve these problems and I urge you to adopt my recommendations. I am ready to work with you in solving these problems. I am willing to meet the problems now. The burden upon us is great and I am willing to share that burden with you. None of us can afford to avoid the duty that is ours and I , for one, do not want to or intend to.

It is my sincere prayer that our efforts be guided by Almighty God throughout our deliber ations.

Thank you.

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