It will be seen by his report that there are twenty-two organized and well armed companies of militia in the state, favorably situated for the protection of the frontier.

Previous to 1875 there were but few militia companies in the state, and none properly prepared for active service. The outbreak of the Indian war last spring, and consequent danger of raids by hostile Indians upon our extensive western and north-western frontier, demonstrated the necessity of a thorough organization of these settlers into military companies for their own protection.

Many of the settlers fled from their homes, some took refuge in the forts, and others left the state. I received constant appeals from them for arms and ammunition, that they might be enabled to protect their homes and families. I applied to the general of the army and the secretary of war for a loan of arms, until these threatening hostilities should subside. But there was no authority for granting this request; however, through the active exertions of these officials, and our delegation in congress, a law was passed under which one thousand stand of arms could be obtained from the nearest government arsenal by each state exposed to raids by the Indians.

The law required the governor of the state or territory receiving arms, to execute a bond to the secretary of war, for their safe return whenever required by the general government, or payment of their value. I therefore executed a bond in the sum of eighteen thousand dollars and received the arms and ammunition.

Instructions were issued to the adjutant general to proceed at once to the frontier and organize independent militia companies as provided by law, equipping them with suitable arms and ammunition, and taking therefor a joint and separate bond from the officers and men, for the safe keeping and return of the same when required, and for the judicious expenditure of ammunition. All of which was promptly and faithfully performed. This gave confidence to the people; they returned to their homes, and new settlers followed them to the frontier.

The expenses incurred for the transportation of the arms and ammunition have been paid from the incidental funds of the governor and secretary of state.

As requested by the secretary of war, I would respectfully ask that my action in executing the bond be ratified by you.

INSURANCE.

By the provisions of an act entitled "An act to provide for the care of the capitol building and other state property," the governor is required to keep insured the public buildings and other property belonging to the state, and liable to destruction or injury by fire.

The legislature, at its last regular session, appropriated $10,740.00 to pay premiums on insurance contracted by my predecessor, he having issued certificates of indebtedness for that amount.

Inadvertently no appropriation was made for the payment of expiring policies. Believing the law to be obligatory, I caused the renewal of those policies that have expired during my term of office, and have issued evidences of indebtedness, subject to the action of the legislature, for $5,482.75, covering the amount of premiums.

It would seem proper that a sufficient appropriation should be made to keep the buildings and property of the state insured in advance, or modify the law on this subject.

The state saves one-third of the amount of the premiums by insuring for three years, and in the renewals made by me I have adopted this course. A tabular statement is submited herewith, exhibiting the aggregate insurance on the public property, in what companies insured, the amount of premium thereon, and the date of insurance and time of expiration.

The total amount of insurance is $247,750.00, and the premiums are $11,152.75. The sum necessary to pay the present outstanding indebtedness, and renew the policies expiring during the next ensuing two years, is $17,406.50.

If it should continue to be the policy of the state to keep its property insured, I would ask that an appropriation for the above amount be made.

CENSUS.

As contemplated by the existing law, the census of the state are taken by the precinct assessors annually, and returned to the county clerks of their respective counties, and by them forwarded to the secretary of state.

The compilation of the census reports by the secretary of state shows the ratio of increase in our poplation from 1855, when the first census was taken, to and including 1876, when the last enumeration was had, to be 5,635 per cent., an increase almost unparalleled.

As appears from the census taken in the spring of 1876, the total number of inhabitants in the state was two hundred and fiftyseven thousand seven hundred and forty-nine.

The expense incurred in taking the census from year to year is quite large. I would recommend the law be made to conform with the constitution, which provides for the enumeration of the inhabitants in the year 1885, and every ten years thereafter.

This, with the census taken by the general government every ten years, would give us the enumeration of our state every five years.

THE SALT SPRINGS.

The supreme court of the United States has affirmed the decision of the supreme court of this state, in the case of J. Sterling Morton against the state of Nebraska, thereby confirming the title of the state to the valuable Saline springs near the city of Lincoln. It will be necessary for you to adjust the expense incurred in defending this suit.

In the year 1871, while the case was pending in the district court, the Hon. George H. Roberts, attorney-general, engaged the professional services of the Bradford Brothers, attorneys and counsellors at law, of Washington, District of Columbia, to assist him,

under a stipulated fee. They were in the case from the beginning until the final adjudication.

They have received nothing for their services, not, even the amounts advanced by them for printing their briefs, and other expenses. It is not for me to say whether this contract made with. these gentlemen is obligatory on the part of the state. They have worked faithfully, and are entitled to such fee as would be reasonable for such services.

When the case was appealed to the supreme court of the United States, my predecessor, acting upon the advice of attorney-general Webster, and in view of the magnitude of the case, and the distinguished counsel employed on the other side, retained in behalf of the state, the Hon. E. R. Hoar, of Massachusetts, who ably argued the case in the supreme court. He was paid $500 as a retainer fee by Governor Furnas. On the termination of the suit, he rendered a bill for $1,530; $30 for printing, and $1,500 for professional services, leaving a balance in his favor of one thousand and thirty dollars.

In justice to these parties employed by the state, I recommend an appropriation be made to pay them for their services.

The title to the Saline springs is now undisputed, and it is generally conceded by those best informed upon the subject, that if properly developed, they would become a source of revenue to the

state.

THE GRASSHOPPERS.

This destructive insect revisited our state in the months of August and September last, contrary to scientific theories with respect to their habits and nature.

Heretofore it was supposed by entomologists that this insect was generated in the dry atmosphere of the table-land of the Rocky Mountains; that they were not adapted to a humid climate, and that they would not descend to the fertile plains except in very dry seasons; but the past season was very wet, vegetation grew rank and luxuriant. Notwithstanding this fact, the voracious.

grasshopper overran a wider territory than ever before. Indeed, we can say, they extended from the British possessions on the north to the Gulf of Mexico on the south, and much farther east into Minnesota, Iowa and Missouri, than in former years. Can it be doubted, with the facts before us, that the grasshopper problem becomes something more than a local question, confined to a few western states and territories?—or that unless this insect is checked in its rapid procreation it will, in a very brief space of time, subject the whole country to devastation? To say that any portion of the country is exempt by nature from their ravages is, in my opinion, unwarranted and disapproved, alike by history and the condition of our climate the past season.

Although our state was not seriously damaged by this last incursion, great quantities of eggs were deposited in our soil, and from these we have reason to be apprehensive for the safety of our coming crops.

For the purpose of gaining information and exchanging views on this subject there was held in Omaha, in the month of October last, a convention of the governors of several western states and territories. Their proceedings have been published, and will be transmitted to your honorable body and circulated among the people.

CENTENNIAL EXHIBITION.

As the time drew near for the opening of the national centennial and international exhibition, a general desire was expressed that Nebraska should not go unrepresented.

The legislature, at its last regular session, failed to make an appropriation for this purpose, believing our financial condition at that time would not warrant the outlay; but with the return of prosperity and an abundant harvest, it was felt that a golden opportunity would be missed should the rich products of our soil be not in some manner displayed at Philadelphia. Besides, it was believed that we would, as a state, be failing in the performance of a patriotic duty in the centennial year of our republic.