Reports from the several counties in the State show a total of over $97,000,000 collected locally during the past year, or 41 per cent of all general taxes, for school purposes. This makes Illinois' annual school bill a little over $111,500,000 out of a total of $235,467,435, the amount collected for all general taxes throughout the State.

While these amounts are exceedingly large, no one will deny that the money devoted to educational purposes is well spent. Nevertheless, the increased cost of schools and education to the State, and locally, is one of the main causes of the larger tax bills with which our citizens are presented from year to year.

The report of the Educational Commisison authorized at the last session of the General Assembly which will be submitted to you, will, I am informed, point the way to further aid through a more equitable distribution of State school funds, and a better organization of the local units for both support and control.

Very properly and justly every Illinoisan is proud of our educational institutions, the common schools, State normal schools, and the university, and great care should be exercised to avoid action which will in any wise impair their usefulness.

MILITARY AND NAVAL DEPARTMENT.

The progress of the National Guard during the past biennium has been a period of substantial development.

Two years ago, the organized strength was approximately 3,000, with no regiment completely federalized. Today, we have a force of over 7,000 men, with four regiments of infantry, two regiments of artillery, two battallions of artillery, one squadron of cavalry, one engineer company, one signal company and one tank company, which are in a high state of efficiency-the organization of which is identical with that of the regular army, and each has received federal recognition at the hands of the War Department.

In 1921 and 1922 each of these organizations attended a camp of intensive training of fifteen days each, carrying out a course of instruction prescribed by the War Department and under the supervision of officers of the regular army, and their reports to the War Department as to the efficiency of the guard have been very satisfactory and compliment them on the progress they have made.

In addition to the fifteen days of intensive training given each year, a large portion of the National Guard was called out during the year 1922 to preserve law and order, and protect the life and property of the citizens of this State at Bloomington, Clinton and Joliet.

ILLINOIS COMMERCE COMMISSION.

Accomplishments by the Illinois Commerce Commission created by the Fifty-second General Assembly to succeed the Public Utilities Commission have demonstrated that wisdom of the legislature in making that change.

The law creating the Illinois Commerce Commission to succeed the Public Utilities Commission, became effective July 1, 1921.

This body has held a large number of rate hearings in Chicago, Springfield and at other points in the State. In fact, its records show that during the fiscal year ended June 30, 1922, the commission held no fewer than 1,329 separate hearings, and issued a total of 1,340 orders of various kinds. These figures do not include the hearing and adjustment of informal complaints, which run into the hundreds, nor do they include a total of 2,529 orders approving leases which came before the commision.

A very considerable number of direct rate decreases have been ordered within the course of the year. Notable among these is the so-called five-cent fare case of Chicago. Upon complaint of the city and its mayor, the members of this commission, when acting as members of the Public Utilities Commission, began the consideration of the application for a reduction of the fares of the surface lines of Chicago.

After exhaustive hearings the commission, on November 23rd, 1921, entered an order directing the surface lines to put in effect forthwith a fare of five cents for adults and three cents for children. This order was based upon the evidence submitted to the commission and had it been accepted in good faith, compliance therewith would I believe have been to the very great advantage of the utility itself, as well as to the people of Chicago. However, the utility concerned went to the federal court and secured an order restraining the commission from putting the five-cent fare order into operation. Thereupon the commission proceeded to take further testimony and on July 6, 1922, entered an order directing the surface lines to put into effect, upon a fixed date, a six-cent fare for adults and half fare for children. Again the utility appealed to the federal court and secured a temporary restraining order. After argument before three judges sitting en banc, two of these judges joined in enjoining the commission from making this rate operative; but directed the Surface Lines company to put in effect a cash fare of seven cents for adults with an alternative of selling to all who desired to purchase them, tickets at the rate of three for twenty cents—a rate, in effect, of six and two-thirds cents per passenger. The third judge declined to join in this decision and expressed himself in favor of letting the six-cent fare order become effective.

Although in this effort in behalf of the people the commission failed to get the full measure of relief it believed should have been secured, nevertheless it reduced the cost of transportation to those who patronize the Surface Lines of Chicago (in the aggregate) between $7,500,000 and $10,000,000 per year.

The commission also cited the Chicago elevated lines to appear and defend the fares they were then charging, namely ten cents for single cash fares and eight and three-quarters cents where four tickets were purchased at one time. After various hearings and conferences a schedule of rates was put into effect whereby a rate of ten cents for a single cash fare was continued but the rate was reduced to eight and one-third cents for those who purchased three tickets at one time, and for experimental purposes a weekly pass costing the purchaser one dollar and twenty-five cents was authorized, under which constant users of elevated railway service reduce their fares as low as five cents per ride if the pass is used to its full extent.

While this plan has not been in operation long enough fully to test its advantages to the public, it has nevertheless been estimated that under it the patrons of the elevated lines in Chicago may secure savings which would aggregate several million dollars in the course of a year.

Another important reduction of rates was accomplished in the case of the Peoples Gas Light & Coke Company, a case begun by the commission upon its own motion. After various hearings and conferences in this case the commission established, and the company accepted, a net rate of one dollar per thousand for gas in Chicago to the ordinary consumer, which means an estimated saving on gas to such consumers of $3,500,000 per year or more over previous rates.

One of the most important hearings the commission has yet undertaken was that in relation to the rates and charges of the Illinois Bell Telephone Company, which was begun upon the commission's own motion and has not yet been concluded. The purpose of this hearing is to bring about a readjustment and reduction of rates not only in Chicago but throughout the State.

In addition to these larger cases-and they are larger only in the sense of the amount of property involved and the great number of persons affected, by them--the commission has given relief to many other communities.

The construction of permanent roads has encouraged a large number of persons and corporations to undertake the operation of motor bus and motor truck lines for the transportation of persons and property. The authority of the commission to deal with these companies is not adequate for the protection of the public, therefore, it is recommended that the sections of the Illinois Commerce Commission Act dealing with this particular question be carefully and fully revised.

The revision of that part of the Illinois Commerce Commission Act which relates to the suspension of rates of public utility concerns is also recommended.

The commission early took hold of the grade crossing menace and constructive results have been achieved. There are approximately 9,000 grade crossings outside of city limits in Illinois, which are under the jurisdiction of the commission. Of these 3,700 are designated as extra hazardous and signs marking them as such have been erected.

A general hearing attended by state-wide highway commissioners and railroad officials has been held. As a result of such hearing a general order will be issued by the commission guarding these crossings as fully as the authority of the commission will permit.

I suggest revision of the law to give greater authority and increased powers to the commission along this line, in the exercise of their jurisdiction over grade crossings.

I desire, at this time, to urge upon the General Assembly renewal of my recommendation made in my Inaugural Message and on subsequent occasions, that a well considered plan of peoples' ownership and operation of street car lines at five-cent fare be enacted. This will provide, primarily, that the people of the city or community affected be afforded an opportunity to decide by their vote whether or not they desire to adopt a system of local transportation whereby they may be empowered to own and operate their street-car lines and establish the rates of fare.

DEPARTMENT OF LABOR.

The Department of Labor has three main functions:

First, the placement of workers in industry without cost to them and the supervision of employment agencies requiring a fee.

Second, the inspection of all workshops, factories and other institutions coming within the scope of the laws affecting the health, safety and comfort of the worker.

Third, in affiliation with the Industrial Commission of Illinois, the enforcement of the Workmen's Compensation Act.

Besides these specific functions there are general requirements placed upon the department having to do with the welfare of labor.

The various free employment offices have in total secured work for 239,078 workers without expense to the individuals.

Careful inspections have been made of practically all industries coming within the scope of the various laws administered by the department. total of 263,611 inspections have been made during the past two years.

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There has been a substantial increase in the number of cases heard by the Industrial Commission during the past two years, and the awards made by this commission totaled approximately $10,000,000.

The general offices of the Department of Labor have been extended successfully toward maintaining cordial relations between employer and employee.

EXECUTIVE EXPENDITURES.

For a statement of receipts and expenditures from funds subject to my order, your attention is directed to the biennial report of the Auditor of Public Accounts. Vouchers for all such expenditures are on file in the Auditor's Office.

In concluding, I wish to express my deep appreciation and gratitude to those State officers, heads of administrative departments and divisions, and employees who have co-operated with me in the outstanding achievements

of the past two years. Only with their sympathetic and loyal assistance could I have hoped to accomplish the results of which we may all be justly proud.

Respectfully submitted,

LEN SMALL.

On motion of Mr. Dahlberg, 15,000 copies of Governor Small's biennial message were ordered printed, 10,000 copies for the use of the House and 5,000 copies for the use of the Senate.

At the hour of 3:45, Mr. Dahlberg moved that the joint assembly do now rise.

And the motion prevailed.

At the hour of 4:00 o'clock p. m., the Senate returned to the Senate Chamber and resumed the consideration of business.

By unanimous consent, Mr. D'envir offered the following resolution, which was laid over under the rules:

SENATE RESOLUTION No. 13.

Resolved, That this Senate hereby expresses its indignation at the arbitrary and unjustifiable action of the State Canvassing Board in defeating the will of the voters in the First Senatorial District of Illinois by depriving Norman H. Macpherson of his election as Senator of this State and giving the certificate of election to Adolph Marks whom the majority of the citizens in that district refused to elect.

Resolved, further, That this Senate do now select a committee and instruct it to proceed at once to Chicago and recount said ballots and report to this Senate forthwith the votes actual cast for said Marks and said Macpherson.

A message from the House by Mr. McCann, Clerk:

Mr. President-I am directed to inform the Senate that the House of Representatives has adopted the following joint resolution, in the adoption of which I am instructed to ask the concurrence of the Senate, to-wit:

HOUSE JOINT RESOLUTION No. 2.

Resolved, by the House of Representatives, the Senate concurring herein, That the two Houses meet in joint session in the Hall of the House of Representatives on Thursday, the 4th day of January, A. D. 1923, at the hour of 10:30 o'clock a. m., for the purpose of canvassing the returns of the election for State officers, held on the 7th day of November, A. D. 1922, as required by the Constitution of this State.

On motion of Mr. Barr, by unanimous consent, the Senate concurred with the House of Representatives in the adoption of the foregoing resolution.

At 1:10 o'clock p. m., on motion of Mr. Barr, the Senate adjourned.

THURSDAY, JANUARY 4, 1923, 10:00 O'CLOCK A. M.

Senate met pursuant to adjournment.

Hon. Richard J. Barr, President pro tempore of the Senate, presiding.

Prayer by the Chaplain.

The President pro tempore of the Senate announced that he had examined the Journal of Wednesday, January 3, 1923, and found not corrections to make, and unless some Senator had corrections to offer. the Journal would stand approved. No corrections being offered the Journal was ordered to stand approved.

At 10:30 o'clock a. m., the President pro tempore of the Senate announced that the House was ready to receive the Senate in joint session, as provided by House Joint Resolution No. 2, adopted on yesterday The Senate, preceded by the President pro tempore and other officers, proceeded to the House of Representatives.

JOINT SESSION, 10:30 O'CLOCK A. M.

The hour having arrived, the time heretofore fixed by joint resolution adopted by the House of Representatives and the Senate, at which the returns of the election of State officers should be canvassed and published in the presence of the two Houses.

The Senate, preceded by its President pro tempore and Secretary, appeared in the Hall of the House of Representatives, and by direction of the Speaker, took the. seats assigned them.

The two Houses being convened in joint session, the President pro tempore of the Senate announced that a quorum of the Senate was present.

The Speaker of the House of Representatives announced that a quorum of the House was present.

A majority of each House of the General Assembly being present the Speaker of the House, pursuant to section four (4) of Article five (5) of the Constitution, proceeded to open the returns of the election held on the Tuesday next after the first Monday of November, the same being the seventh day of November, A. D. 1922, for State Treasurer and Superintendent of Public Instruction, and to publish the same.

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The returns having been duly opened and published in the presence of a majority of the members of each House of the General Assembly. the Speaker announced the result of the canvass of the votes cast at the election aforesaid, as follows: