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I ANNUAL MESSAGE -OF GO?. LUCIMBBAED. DELIVERED TO THE MINNESOTA LEGISLATURE JAN. 4, 1883. Gentlemen of the Senate and House of Representatives: You ujsouiblo vi« tlilo time a^i\i: ciieuni- Btanees favorable for careful and cousid • crate action upon the questions that will command your attention. You bring with you from your several localities the assur ance that the people of the state ar« pros perous, and enjoying that feeling of con tentment that follows well-rewarded indus try. The various material interests of the state have developed and prospered during the past two years to an extent not «x --ceeded by any previous experience tor a like period in her history, and aIL existing conditions are favorable to a continued rapid and healthy growth. Tire -exercise of a wise and careful judgment upon your part in the deliberations of this session, will greatly aid in realizing f«r our state that promise which the future presents be-! fore 08. It is a pleasure, gentlemen, to greet you as the first legislative «sseirbjy 'convened in the new capitol Inulding. Though in a somewhat incomplete state, it wiil doubt less afford jovi eeiScient facilities for the proper prosecution of your duties. The old territorial capitol, coca plated in 1853, whs destroyed by fir© on fee night of March 1. 1881, daring the last days of the session of tbe legislature of that year. It was thought probable immediately after the fire, that ike foundation asd a portion ■of the walls of] the burned bcilding could be utilized far a new structure, and an ap propriation ef $ 7*,G00 was made with the expectation that the expenditure of that sum would substantially restore the old building. It was decided attar a more thorough inspection that at would be un safe to build upon tho ruins of the old capitol. It was then determined by my predecessor to erect aa entirely new structure, and the plans of this building, were adopted by him, and the foundation laid during the summer of 1881. The abandonment of the old .building and the adoption of new placs involved a much greater expenditure than was anticipated or had been provided for. At the extra session of November, 1881, an additional appropriation of $100,000 was made to and furnish" the new building, which bus* it was provided by the terms of the act making the appropriation should "complete the buiMing in all respects." The autumn meothe of 1881 were very un favorable for the prosecution of bailding operations, henoe, no work was done upon the superstructure though it waa largely contracted for, aad a portion of the ma terial for the walls and roof delivered up on the ground. Upon a caref ol examination of the mat ter shortly after say accession to the exec- utive office, I felt much doubt as to the sufficiency of the amount appropriated to -complete the building according to the plans adopted and the terms of the act of the legislature. 5. therefore called upon the architect f«r an estimate of the amount required to complete the building, includ ing what had already been expended. In response thereto he submitted an estimate aggregating $245,000. This was largely in excess of the appro priations made, which were 184,000 includ ing $9,000 made for repairs, etc., for the old capitol, whiok were deemed available for the now building. This exhibit .which showed a deficiency of $61,000 was disap pointing and a surprise to many who be lieved the appropriations were sufficient to complete the building. I was assured by gentlemen familliar with the facts, among whom were members of the legislature to whom the details had been submitted, that the final appropriation for the purpose was understood to be ample to cover the fall estimates of the architect. A further con saltation with the architect disclosed the fact that he had made some months pre vious and submitted to ncy predecessor an •estimate contemplating a oaeaper con struction and a finish of quite a different character and which omitted some essential features of the bailding altogether, notably the tower, fire proofing, etc., which reduced his fig- ures to a point within the appropriations. It appeared, however, that the estimate was made at a time when labor and material were cheaper, that , the earns figures even for the cheaper finisk ■ could not then be duplicated. I made a ' formal call upon the architect for his lower estimate which was furnished, but which in my judgment it was not for the in terest of the state to adopt, as it contem plated a very cheap interior finish of the building, excluding all fire proof features, and in most respects quite out of harmony with the exterior construction, the con tracts for which were already let. The lower estimate was, however, out of the question in any event as it was made upon the basis (as stated by the architect) of price 3 for labor and material below those prevailing or at which it was possible to obtain them. The correspondence and estimates referred to are submitted for your farther information. The appropriations being entirely inad equate for the completion of the bailding, I had determined to prosecute the work so far as to complete the contracts already lot, and add such further expenditure as would eaclose the structure and protect it from the elements, and await future ao tion of the legislature. Upon the an nonncementof this determination upon my part, a tender of $40,000 was made to me by citizens of St. Paul, for the purpose of patting the building in condition to be occupied by the legislature at this session. The tender was made without conditions, ard was accepted without assurances upon my part (which, of course, I could not give) as to the future re-imbnrsement of the persons making it. I was encouraged by this generous action of the citizens of St. Paul to continue the work, and there upon made additional contracts and pur chases of material necessary to prepare the building for your ocoupancy. Though I incurred no obligation to do so in ac cepting this aid, yet I feel it is due the gentlemen whose liberality and public spirit thus cams to the rescue, as well as to the dignity of the state, that I should recommend that the amount thus tendered and expended be returned to them. The estimates of the architect for the work already done and authorized are largely exceeded by the actual cost of the same; and to meet this exces3 aad to pro- vide the dome to the tower, stone steps to the several entrances and prepare and en close th« grounds an additional sum will also be required. I have called upon the architect to prepare final estimates cover ing the entire completion of the structure which will Boon be submitted and which* will probably show that about $120,000 will be uecessry to meet the full and final cost of the building, including the $40,000 received from the source referred to. I' therefore recommend that an appropria-. tion «ef the sum named bo made. It will require an addititional stun to furnish the! rooms ocoupied by the several depart ments, a careful estimate of which will be submitted at an early day, mid for which; as appropriation shorl: 1 be n:esi» !• I have given the work cf construction ' cpon this building much personal atten tion. I have been careful that -every item of expenditure should be «s carefully and economically made -m possible. I believe the *tato <ha 3 received value: . for •every dollar expended, notwithstanding rauch of the work has been done at son** disadvantage. To put the building in condition to bo oc cupied by your body, necessitated the em ployment of labor with Jess economy, to some extent, than might have bean done had more time been till*.wed. The first brick was laid upon the&emndatioc on the 4thday of last April, hemoe the construc tion of this almost completed structure has covered a period of but mine months time. It is in all essential respects a lire proof building. It will fur pish ample accom modation for all departments of the state government for a generation to come. It will cost when completed in *11 respects, about $300)000; and I state with confi dence, my belief, that contracts could not foe .made to day to do plicate this structure for the money it wiil have cost when com pleted. In this connection it is proper that I should refer to th>3 generous offer made by the city of St. Paul of their market house for the use ef the stats pending the construction of the new CLpitol. Before the illumination caused by the burning of the old capitol had begun to fade, the city of St. Paul through its authorities tendered to Gov.^Pillsburj the use of the market house for the legislature and state officers.; and nearly at the hour foe its usual meet ing., on the following dap, the legislature was engaged in the. routsae of its regular order in the new-quartere thus provided. Tha -state has occupied ti\e building since that time, a period of twenty-two months. It has been no inconsiderable sacrifice upon -the part of the city and her citizens ; to be deprived of the facilities and con- ; veniences this building was : designed to ' afford them. Its use- has been of very great., public benefit. I submit that it would be but just for the state-to compensate the city in reasonable amount for the use she has made of the building, that it does not comport with the dignity of the state to remain in money values the beneficiary of any citizens or municipalities.: This sug gestion is wholly my own, no intimation ; having ever reached me that compensation was desired or would be accepted. FINANCES. The following -statement made by the auditor's department exhibits the financial operations of the state treasury during the past two years: JIECSIPTS. 1880. 1881. Cash balance November SO, 1880 _ $264,151 99 Conk balance November 80,1831 $557,744 27 State taxes 504,666 80 402,600 08 Taxes from railroad,in- ;<" surance and tolegr&ph companies 362,294 75 509,883 43 . Fees ef insurance ccm panies 6,534 00 6,355 00 Payments by comities for seed grain loans, 1877-8 35,860 13 18,405 93 Board of U. 8. cob- Ticts.....: 753 75 494 25 County indebtedness to reform school 9,845 00 21,391 18 Ixtereet on state de posits 12,53165 8,417 23 U. 8. 5 per cent, on sales, of public lands. 8,115 93 .49,56148 Sales of grass on -■ '". •' '•■ school lands 746 28 1,293 11 Sale of pine timber on state lands 26,682 47 89,174 68 Principal received at ■ ■„.... ■■■■•. . sales of school lands.. ,€7,025 46 20,718 65 Principal receded on " ■ ' former sales school - ' lands 184,774 07 210,803 21 Interest raid on con tracts school lands.. 171,587 16 167,157 46 Principal receded at \ .sales of Int. Imp. lands 21,85100 8,810 74 Principal received for- \; >- mer sales Int. Imp. lands 9,440 58 23,387 89 Interest paid on con tracts Int.lmp. lands 30,147 27 82,832 78 Principal received sales ; - of Ag. Col. & Un. lands... 6,589 68 464 35 Principal received for | mer sales Ag. Col. & Un. lands 10,703 18 12,027 50 Interest paid on con . tracts Ag, Col. dsUn. lands 20,213 83 20^26 50l Interest paid on pine I etumpago accounts.. 438 58 2,883 178 Interest paid Col. & I lands 20,213 8* 20,326 50| Interest paid on pine I stum page accounts.. 438 58 2,833 I'm Interest paid on perma- I nent school fund bonds 103,698 33 81,225 101 Interest paid on perma- I nent university fund I b0nd5....... , 9,355 00- 9,475 00l Interest paid on Inter- I sal Imp. land fund I bonds 9,500 00 4,010 OOi Redemption of Minn. I bonds 1873-8 100,100 00 104,000 Oo] Redemption of U. S. I bends 6s gold 10,000 00 I Redemption of Mo. 69, 21,000 GOfl Payment by counties . I for school text books 13,547 92 12,066 Ssfl Insurance on state li- I brary 10,200 00 ■ Sole of U. 5.4.4 per cent. ■ I Sale of U. ..'. .§839,00>J 395,617 ■ bonds $589,00->» 395,617 69 Sale of U. S. 6 per cent. ■ bonds $212,100 272,192 Col Sale of Mo. 6 per cent. H ' bonds..;,.. #123,000 '- ..-"'"X 135.594 f.a| Miscellaneous..... 3,350 24 2,09S on Totals .... $1,979,558 06 $3,201,416 iM DISBURSEMENTS. :' - - ' j-. I 1881. 1882. M Legislative expenses, I • regular session .$ 73,206 03 $ 18 Col Legislative expenses, H extra session 46,182 35 .....'. I Senate .'court of mi- H "peachment..•............../.,. 25,567 65fl Executive - 63,545 74 59,980 IB Judicial.. ;*. .•."...-.-.;. 69,796 86 J9 < "502 4?H Support of insane hos- - * ' :-i. •::-'. ■ •■ : .■; ; • H pitals, prison,': re^'-ior;} ;..'V f . ■ ■ form school, deaf, : H dumb, blind and ire- . ._ H beciles, and | normal :.Jvl '•'^H 9 5ch0015....:...-..:; GOO, 465 47 " : 312,418 008 Support of university. , 47,000 00 l ' 43,881 4IH Public buildings.:./. 174,617 24 331,983 5H Public printing and ;*" ' '..•-, ■''-■ • -.■ , , , stationery -. r. r.~':.-. 83,989 79 .* 33,208 3<H Printing laws in news- ■ - ■ 1/ ]^M paper 5......;....;. 82,044 60 1,305 40M Interest on state debt, - . ; ■ loans '78 and '78... 19,485 55 11,706 isH Interest on state debt, H R. B. Ad'g state ' ■ bonds. .......... 88,135 451 Apportioned school , : ■ funds 259,414 96 259,697 6» Purchase of bonds for S H invested funds, in- 1 eluding premiums, H etc. 79,872 65 1,596,005 GoH Agricultural and hor- ■ ticultural societies. 5.06 91 4,152 78H Historical society.... 8,963 83 8,391 OsH State board of health, ■ equalization, immi-' trntion, farmers' board of trude . 9,069 77 6,851 5« Training schools and H institutes... 2,765 09 3,235 00l Fish commissioners... 3,700 00 4,500 OoH Selling state lands... 5,697 86 3,291 Ojl •MS SETPAUL DAILY GLOBfe, tfJfIDAY MORNING, JANUARY 5 1883. School textbooks... 18,617 81 11,420 23 Redemption of state bond of "78 and '78. 100,000 00 104.C00 00 Miscelktoeoua 80,147 18 .71,429 25 -, $1,421,812 79 $3,058,817 21 Balances In treas ury Nov. 80.... $557,744 27 $148,098 58 To the credit of the following fands: Nov. 30,1881. Not. 80,1882.; State institution* $82,746 87 §20,246 91' Intorost... 6,230 58 6,818 If Sulking 16,050 79 582 91 Seed grain sinking. 6,394 91! . 800 €5 Permanent school 317,09198 104,172 54 Graeral school. 80,015 06 18,657 27 Permanent university. 46,232 17 16,063 11 General university... 81,701 91 12,459 98 internal improvement 4,865 49 10,653 88 Internal improvement 1and5........ 93.539 71 65,910 82 School textbook.... 1,317 05 1,863 82 Forestry 25,G56 10 Swampland 2,013 68 Totals .3636,088 63 ?|85,90S 94 Deduct revenue fund, overdraft .... 78,342 36, 142,810 36 Cr.Bh in treasury $557,744 27 $143,098 58 | This statement, in its general aspect, though indicating a healthy condition of the treasury—there being an apparent credit balance of $143,098.53 at the end of tho last fiscal year—is misleading in some of its details. While there is the amount in the treasury as stated, the revenue fund, from which must be paid all legislative, ex ecutive, judicial and other general ex penses, is overdrawn to the amount of $142,810.36/ This overdraft is cai»ied largely by the trust funds of the state, which otherwise would have a considerable available-surplus for "permanent invest ment. The limit to which such overdraft is allowed 'by law is $050,000. \ It therefore appears that there is practically no money in tbe treasury available to pay the expen ses of your body or other departments of the state government. It is true "you tan authorize a still further overdraft, but this manner of relieving the revenue fund is not in accord with suck principles of finance as should govern the management of the treasury. As a temporary expedient to meet an -exigency that could not be fore seen, it k perhaps permissible, but as a practice, it is wrong, The large overdraft new is caused by several extraordinary ex penditures, such as the extra -session of 1881, the 1 Cox impeachment trial, rebuild ing the capitol, interest on the railroad ad justment bond?, etc., for which no account was taken in the tax levy of the past year. While the legislature of 1881 made appro priations for all these accounts, it did not make provision to increase therevenne to meet them. The actual receipts from taaos and other i sources that provide the revenue f nnd,have ; exeeded the estimated receipts the past two years, $34£,6&0.06, but the actual' expendi- j tures have exceeded the estimates, $76-1,- ; 814.-46, during the same time, as appears in detail in the following statement: Estimated and actual, receipts --and disburse ments, in 1881 and I£B2, for expenses of the •stato.government and support «"f etate institu tions: —KECEIPTS- Estimated. Actual. State taxes $398,000 $411,518 51 Railroad . and telegraph companies 290,080 330,625 50 Transfer from Imbecile Asylum land 7441 Miscellaneous sources.. 55,000 70,643 08 Balance in treasury, . Nov.. 30, 1889 188,000 188,927 01 i $881,000 $951,788 51 DISBURSEMENTS. Laeg-isL'ituro, regular session $100)600 $73,206 03 Leetilature, extra ses sion 46,132 85 Executive 55,000 63,545 74 Judicial 50,000 69,796 36 Printing 25,000 83,289 79 Miscellaneous and over- 56,600 143,664 38 Support of institutions.. 280,000 300,465 47 Buildings and repairs... 100,000 174,616 24 Interest on state bonds.. 13.000 19,485 55 Totals $679,C00 8924,052 91 Surplus $202,000 $26,835 60 Transfer to ssnking sand. 116.201 01 Surplus available for 1882 10,634 59 ■yK 1882—receipts. : ■:-' State tax $150,000 $311,205 16 Railroad companies 235,009 470,556 66 Miscellaneous 63,000 107,719 85 Surplus 202,000 10,684 59 Overdiaft lees balances. 118,745 28 ■ Totals ......V.... $740,000 $1,015,861 55 DISBUBBEMENXS. Impeachment court;... 1. $28,585 65 Executive $55,000 59,980 19 Judicial ........ 50,000 79,502 47 Printing... 15,000 ' 33,208 ?.4 Miscellaneous 56.000 70,095 80 Support of institutions. 314,000 312,413 00 Interest on state bonds 7,000 11,706 15 Interest on state bonds, R. R. adjustment 88,086 45 Building, state .... 331,983 50 Totals .$497,000 $1,015,861 55 .. This statement shows the actual dis bursements the past year, for which ap propriations were mada in 1881, to hare exceeded the estimated disbursement more than 100 per cent. The estimated receipts and disburse ments for 1883 and 1884 are ac follows: REVENUE FUND. RECEIPTS— 1888. State taxes $315,000 00 Insurance co.s taxes . and fees..., 47,500 00 I: Counties for inmates of Reform school ...... 16,600 00 Prison rent and labor.. 10,000 00 Interest on deposits.. 10,000 00 U. S. convicts and mis cellaneous 1,509 00 $400,000 00 EXPENDITURES—IBB3. Overdraft N0v.50,1882.5142,810 35 Univ. bldgs. grounds and furniture on books 82,000 00 Capitol repairs and fur nishing on b00k?... 5,714 53 Prison wolle, etc., on books 10,390 93 Executive estimate. . . 65.000 00 Judicial estimate...... 84,00!) 00 Capitol building den- I ciency.. 120,000 00 ■ I Capitol furnishing.... 25,C00 00 I Court of Impeachment I deficiency 14,.00 00 ■ '. I Legislative" expenses.. 89,000 00 I Printing.. .'..'......•... 85,000 00 I Printing laws in news- • ■ - . . •' ' H papers....... . 20,000 00 ■ ■'; I Miscellaneous......... 85,000 0) $763,915 43 1 Estimated excess of expenditures..s369,9lo 501 til' ;.irs«r. ;;;f.j' BECEIPTS—IBB4. .. I State taxes ........ $32' ,000 00 ' I Insurance Co's taxes . .. • , 1 I and fees :.....' 50,000 I Countios' inmates .of '. 17,010 00 : • I Prison rent and labor I 15.0C0 00 -'- ■ \ '' I Interest on deposits.. 10^000 P0 -' • I Miscellaneous.......^' 2,000 00 $414,009 CO ; EXPE>TW*T7BES—IBB4. : •■■ ," I Executive..; V..1.;.. $67,500 00 ■ i..' . ■ Judicial:..•'.■.■..■..:.;.■■■■ 84,000 00 ' .: I ■ Printing ..:..;...;..v ,i; 15,000 00 . ■ Miscellaneous -80,000 00 $246,500 CoH . 5urp1u5..^.............;... $167,500 00l STATE INTSITUTIONS FUND. I , ; RECEIPTS— IBB3. > ■ Railroad companies' :■-','..;; ■ ! taxes. $500,000 00 ■ Telegraph companies' H taxes 5.P00 00 ■ • — ■ ~- $505,000 00 ■ EXPENDITURES. H Support of First In- • - H sane hospital .$131,625 00 H Support of Second In- H sane hospital...... 62,400 00 i ■ Support of Deaf, ;«; ; : ■ Dumb, Blind and ■ Imbecile Institute.. 50,000 00 H Support of prison 60,000 00 - H Support of Reform ■ .';v>> i";' school.and deficien- H cy.... 42,50115 ■ Support of Normal H Ech0015........... 38,000 00 ■ Lupport of Historical 50ciety............ 4,000 00 Interest on Minnesota 4&'B/B. adjust ment bonds ' 59,760 00 — $448,266 05 "Surplus 966,723 95 RECEIPTS—IBB4. Brulroud companies' fixes 6550,00 00 I Telegraph .compa nies' taxe5....... 5,000 00 6555,000 00 ■ EXPENDITURES. Support of First In sane hospital $141,375 CO Support of Second Insane hospital.. 72,500 00 .*■' '. Support of Deaf, Dumb, Blind and imbecile ;nstitnto 60,000 00 Support of prison.. 65,000 00 Support of Reform 5ch001........... 35,000 00 ""> Support of Normal schools 88,000 00 Support of Histori- v ' cal society....... 4,000 00 ♦Interest,, on Minn. 4K R. R. adjust " ment bonds:....'. 84,580 00 ■•■•'• •^.. :si. •r T4! V- tSBQ,VS 00 Surplus .....,/ 44,245 00 ♦Interest on these bonds not included "in these estimates will be paid from fu nda $>rovi.led by chap. 71, gen. laws, ex sees. 18?jl. From the above showing there appears an estimated deficiency in the revenue fund including the present overdraft of $ 368, --■915.88 in 1883 and an estimated surplus of $167,500 of the same fund in 1884- The present and prospective deficiency in the revenue fond should engage your early at tention. A further overdraft except for momentary relief ought not to be consid ered; an increase in the tax levy would bring no relief until another year. The only resource-left is a temporary loan. An issue of bonds at a low rate of interest to such an -amount within the 'constitutional limit as may -Beam to bo required after a thorough, examination, redeemable at the pleasure of the state after one year from their issue, corld be taken by the trust : funds ■*?hich have carried this overdraft for ; so long a time. The entire issue could • probably be redeemed wi&in three years from tne surplus revenue without increas- : ing tbe tax levy to any considerable extent, The auditor in the above estimates of re ceipts and disbursements has not included any part of the amounts asked for by the state institutions for additional buildings, enlargements or repairs. The increase in the permanent trust funds of the state daring tho biennial peci«dJju3t closed have -been as follows; 1881. 18!:2. Permacent school ! f ue«3 8-100,262 54 1536,885 $3 ! Permanent University fund .. 83,274 25 • 68,303 87 Internal Improvement bad fond 183,350 91 20G,951 59 ■ $822,837 70 . $791,620 89 j The present standing of these funds is clefciiy shown by tho following statement: PEEMANENT SCHOOL FUND. $299,000 U. S. 6 per cent, cur rency $305,41905 $25,000 Minn.' 7 per cent, 1 cur rency, loan of 1673 25,000 00 $6LOCO Mica. 6 per cent, cur rency, loan of 1878 61,000 $1,038,000 Minn. 4>£ /per cent. railroad adlustment 1,033,000 00 $668,000 Missouri 6 per cent, cur rency 875,416 92 Land contracts bearing 7 per ' cent..' :. 2,898,769 49 Cash. 104,172 54 Unpaid drafts 69,557 23 $5,372,826 28 rERJIAXEXT TISIVER3ITY FUND. ': $241,000 Minn. 4% per cent, rail road adjustment $241,000 00 Land contracts bearing 7 per cent 354,374 62: Unpaid drafts....: 3,937 83 Cash. i 16,003 11 Experimental farm 8,500 00 Fruit farm 1,309 10 1625,124 66 INTERNAL IMPEOrEMEN T LAND FUND. $322,000 Minn. 4% per cent rail- ■ t road adjustment $822,000 00 Land -contracts bearing 7 per cent. 703,518 80 Unpaid drafts 19,647 66 Cast-.... : .....v.. 65,910 32 ■ $1,111,076 78 H Of the 3.000,000 acres which it is estimat- Hea will eventually inure to the state for ■tho uee of schools there have been sold H7Ji0,801.23 acres. There are unsold 601,- M 638.47 acres appraised at $3,310,020, and Habout 1,600.000 acres cot yet appraised, Msituated mostly in the northern part of the Hstate. The constitution now devotee to Hthe common school fund one-half the Hproceeds of the sale of swamp lands of the ■state. The selections approved as swamp Hor overflowed lands in the snrveys np to HISBO amounted to 4,000,000 acres. In the Huneurveyed area there shonld be, perhaps. ■2,1)00,000 acres. The state land oommis- Hsioner com pntes the total of all state land Hgrants at 3,400,000 aores, bat according to Hthe claims of the grantees the amount is ■5,000,600. It is believed the state will ■eventually realize an amount equal to five ■dollars an acre for all the school lands vet ■unsold, which 7will swell the permanent ■school fund to over $16,000,000, and it is ■not unlikely that the swamp land reversion ■may raise that magnificent sum to $18,000, --■OOO, or even $20,000,000. I Of the 169,353.32 acres covered by the ■University and Agricultural college grants Bthere have been sold 97,007.32 acres leaving 872,34(J acres yet to be disposed of. The?e Bare largely agricultural lands and are val- Bued at an avernge of $6 dollars per acre. ■The permanent University fnnd is there- Bfore expected to tinally realize, from this Bsource the sum of §1,059,200.66. ■ Tho Internal Improvement Lard Fund Bwill probably reach fuliy $3,000,000 when Bths remainder of the land belonging there to is disposed of. There have been sold 157,095.78 acre? and 311,259.46 additional acres have been appraised at $1,649,656.64, leaving 3^,331.27 acres yet to be appraised. The proposition submitted at the last general election providing "for the appli cation of the moneys of the Internal Im provement Land Fund to the payment of I the principal and interest of the Minne sota State Railroad Adjustment Bonds," having been approved by the people, as shown by the canvas of the votes recently made, there is now provided a sinking fund sufficient to redeem, when due. much the larger portion of the indebtedness re sulting from the adjustment of the "Min nesota State Railroad Bond?," and the in come therefrom, when the lands are all sold, will also provide for the payment of a corresponding proportion of interest ac cruing upon such indebtedness. Under the terms of the act approved Nov. 4. 1881, "providing for the adjust ment of certain alleged claims against the state," there have been redeemed 2.232 of the Minnesota state railrond bonds of the denomination of $1,000 each, and other claims adjusted to the amount as allowed of $53,088.66. The adjustment of these bonds and claims, according to the terms of the act, has required the issue of $4, 253,000 of the 4^ per cent, bonds, and there are claims to the amount of $4,250.84 lyet to be provided for by a further issue to that amount. I The original issue of Minnesota state railroad bonds was $2,275,000. The state acquired possession of $15,000 of these bonds some years ago. Thefe have been redeemed as above stated $2,232,000, which leaves but $28,000 now outstanding. The recognized indebtedness of the state is now represented by the following obli gations: Loan of 1878 for building pur poses, 7t? $25,000 00 Lean of 187 6 for seed grain distri bution, 6s 61,000 00 Bailroad adjustment bonds, 4><fl.. 4,253,000 00 Bailroad adjustment, Claims 4,250 84 $1,343,250 84 The loan of 1873 is redeemable the present .yea** and that of 1876 will be re deemed with receipts from counties for loans made in 1877 and 1878 for the pur chase find distribution of seed grain. The taxable property within the state has iacwased from $258,055,543 in 1880, to $811,200,841 in 1882. Taxes for the past two years were levied as follows: 1881. 1882. 'State tax $379,689 25 $841,686 94 •Seed grain taxes (in dividual) 56,616 59 12,000 18 General school, ow> mill 270,757 84 310,116 87 Special 5ch001......... 1,190,086 86 I^B ',361 . S County revenue 875,640 82 1,009,465 48 County interest. 99,88146 H 0,741 88 Countvpoor 140,116 77 153,64107 County (special pu: --po«?s 91,039 78 164,102 05 City taxss 807,393 76 1,135,261 27 Township taxes 297,018 78 303,785 06 Delinquent road 146,420 64 166,266 60 Interest on town bonds 72,624 62 120,799 79 Speciul city'aid town 271,505 40 526,122 44 Total tases for all purposes $4,698,771 57 $5,725,359 41 Average rate for all purposes... 17 8-10-mills 18 4-10 mills A change in the fiscal year is suggested by the state auditor and other officers. A habit that has grown up in some of our institu tions of receiving and disbursing money in December as of Noveoaber,leads to a delay of their reports for two or three weeks, which might be avoided. But I think it desirable now that the legislature meeta only biennially, that the fall reports of the state institutions and office's should be furnished in print for the deliberate con sideration of the members elect, much earlier than can possibly be under the ex isting law. v^'iv The dates for making official reports •should be similarly advanced. The law should be amended so that such reports a3 are required to be made and printed for the use of the legislature, except tliiat of the commissioner of statistics, need be made only biennially and on the years previous to regular sessions. I recom mend also that the regular annual appro priations be hereafter made for fiscal, in stead of calender years, your own provis ion in that regard to close with the fiscal year ending in 188".. STATE INSTITUTIONS. The various charitable, reformatory am penal institutions of the state present i satisfactory record as regards their man agement and the results accomplished. Ac unmistakable evidence of the rapid in crease of our population, is the fact tha nearly ail these institutions have already reached the limit of their capacity, and are asking at your hands appropriations foi additions and enlargement. STATE PBISON. . fJJ: The inspectors of the state prison sub mit a voluminous report, which exhibit! in much detail the affairs of this institu tion. The management of the prison is highly commended and th< record of its inmates as to conduc and condition is represented as verj satisfactory. The total population at thu time is 279, an increase of 25 during th( past two years. The current expenses fo 1881 were $49,964.56 and for 1881 $54,972.65. The earnings were $26,277.04 and $30, 952.78 for 1881 and 1882 respectively,mos of which was credited to apply on purchas< of machinery under the award of 1881 The warden estimates the expenses foi 1883 to be $60,000 and for 1884 $65,000 . and the earnings $33,000 and $35,000 fo the same time. There has been expended during th< past year $36,912.55 in construction of ad ditional wall, for which an appropriatior of $40,000 was made in 1881, also liabili ties incurred for paving streets within th« enclosure, $3,700, painting roof, $560, am premium for insurance $900, for whiel I there was no appropriation, and which if I presented in the form of a deficiency. The I inspectors recommend a further appropriation ■ation of $25,000 to complete the wall, am I $30,000 for the construction of 100 addi I tional cells. There are but twenty vacan I cells in the prison, most of which will soot I be occupied. The additional cell room I 'should be provided, and I therefore ap I prove the recommendation of the inspect I ors in this respect. The completion of the I wall would add greatly to the security ol I the prison, which as the population \ in I creases, becomes more of a necessity. The Ii expenditure might be made to cover a I period of two or more years, and thereby I relieve the treasury to that extent. A com I; mittee of your body by personal examina I tion can best decide as to the urgency of I; this matter. . I The prison enclosure will afford ample I room for 500 or 600 cells, about double the II present capacity. It will doubtless prove I economy .. to the state to concentrate the II population of this class in one institution, II where the cost of management will but I slightly increase with . its growth, «ntil its ■ full capacity is reached. > According to the li inspector's estimate the prison can be I made to meet all requirements for ten I years to come, by increasing its cell ca- I parity to the limit allowed by the enclos- I ure, and / without any . increase of shop I room or machinery the labor of the con- I victs can be fully employed. Some of the I gravest objections to the location of the II prison are now overcome, though at large I cost to the state. It would seem to be the I part of wisdom now to make complete as II possible the present institution,' when it is I confidently believed it will be placed on a I self-sustaining basis. ; *f; . BKFOB3H ECHOOIi. , j The report of the board of managers of The report of the board of managers of the Reform school shows a gratifying record for the past two years. The com mitments to this institution since its es tablishment in 1868 have been 573; of this number 225 have been in connection with I it during the past two years, and 123; are inmates at the present time. I ask your careful consideration of the reasons urged by ' the managers for a change in the j law regulating commi: ments, • especially that feature which provides. - for the mainte nance by each county of the youth they respectively send to the institution. The reasons that may have existed in the early history of the school for this discrimina tion in the maintenance of its inmates, have lost much of their force' by the gener al development of all portions of the state. Without repeating here the argument most forcibly presented by the report for the change referred to, I concur with the man agers in their conclusions that the useful ness and efficiency of the school would be greatly augmented by placing it upon the same footing in this respect as the other state institutions." The engine house con nected with the'manufactory of the school with its contents and attachments, was de stroyed by fire last July. . The property has been restored in a much improved form, at a cost of .$5,731.79. The expendi tures, current fond, were for 1881 $30, --101.64, and ' for 1882 $31,550.81. Appro priations are asked as follows: , Current expenses, 1883 $85,000 00 Current expenses, 188-1.. 85,'n 0 00 Deficiency for 1882. caused principally . by destruction of engine house, etc. 7.501 05 Repairs and improvements, 1883-4 .. 4,000 00 Insurance ....:............ 2,000 00 INSTITUTES FOB THE DEAF, DUMB AND THE BUND, AND SCHOOL FOB IDIOTS AMD IMBE CILES. The directors of the Institute for the Deaf, Dumb and the Blind, and the School for Idiots and Imbeciles, report "that the general schools under their care have, daring the past two years, given exception al satisfaction." In May, 1881, there was organized a sep arate department for the edncation of the blind, which was placed in the charge of Prof. J. J. Dow, as superintendent, who has been oonnected with the institute as teacher of the blind- since 1875. This change in the system of its management has proven advantageous to the institute in many respects. The deaf and dumb de partment continues in charge of Prof. J. L. Noyes, who has established "an enduring record of great efficiency in his work, during the many years he has labored in behalf of this institution. The Imbecile school occupied their new building last February, and has since pros ecuted its proper work more successfully,! under the superintendence of Dr. George H. Knight. There is ample room in the building occupied by the deaf aud dumb for the requirements of this class for sev eral years to come, but the schools for the blind and imbecile are already overcrowd ed. The directors ask an appropriation of $60,000 to erect and furnish additional space for these two departments. The statement which appears in the report,that there are now in the state eighty-four blind persons under twenty-five years of age who have never attended school, aud fifty-nine applicants for admission to the Imbecile school now waiting who cannot be accommodated, is, of itself, an argu ment in favor of increasing the capacity of these schools, that does not need to be enlarged upon. I therefore recommend a sufficient appropriation for the purpose stated. There are now 125 puDils in the deaf ■ and dumb department; thirty-four in the Wind and forty-one in the imbecile. There are 233 uneducated deaf mutes in the state who have not yet received the advan tages offered by this school. The disbursements of the board for cur rent expenses were §44,278.98 in 1881 and $*9,807.23 in 1882. Appropriations are asked of $50,000 for 1883 and $60,000 for 1884 for the same account. The directors conclude their report with the significant statement that, "Adhering to what we regard as the strictest economy compatible with success, we follow the un broken tradition of the past and report an unexpended balance in the treasury." HOSPITAL FOB THE INSANE. That portion of the First Hospital for the Insane at St. Peter, destroyed by fire in 1880, has been restored, and is now in use. The east wing of the Second Hos pital at Rochester, the construction of which was provided for in 1881, will be ready for occupancy in part by February 1 prox_, and wholly completed early the present year. The capacity of the perma nent buildings at St. Peter is sufficient for the proper care of 550 patients, and those at Rochester for 350, a total of 900. There are now connected with the two hospitals 872 patients—636 at St. Peter, and 236 at Rochester—a large number attached to the former institution still occupying the tem porary buildings that have been in use for several years. The problem of providing for the future wants of this class of unfortunates, is one that will engage your serious attention. and any possible solution of it must involve expenditures to a large amount. For many years past there has been an annual average increase of about seventy in the insane population of the state. The in crease in the future, the same conditions prevailing, must be somewhat larger. Provision already made is barely sufficient for another year, hence it is imperative that measures should be inaugurated at this session of the legislature, to add to the capacity of the state to care for these people. With a view of determining the practi cability of relieving the hospitals of the care of any inmates of whose insanity there was reason to doubt, or incurablea who might be cared for elsewhere, I requested the commissioners appointed under tte law for the inspection of hos pitals, to visit them last August for a thorough examination in this respect. Their report was adverse to any discharges being made. Subsequently I held a con ference with the trustees and superintend ents of the hospitals and the members of the commission, at which the subject of the care of these people and their future requirements was thoroughly discussed. As a result of this conference and of other investigation personally made, I am im proved with the belief that the provision I the state must make for some years to I come can be most economically effected I by the construction of another wing to the I hospital at Rochester corresponding to the fl one now approaching completion, and the I erection of additional wards to either hos-1 pital. from time to time as more room I is demanded. These wards can be added fl at leRK than one-third the cost per capita, I according to capacity, than the present I elaborate structures hare involved; and the I maintenance of the additional patients I thus provided for will call for a much less I proportional expenditure than would be I required in another hospital established in I a new location. I The trustees in their report give expres- I leion to this judgment by the recommenda- I tion of the addition to the hospital at St. I Peter, of a ward to accommodate fifty pa- I tiente, for which they ask aa appropria- I tion of $25,000 to be expended the present I year, and also the erection of another wing I to the institution at Rochester, estimated I to cost with furniture, $83,000, to be com- I menced in 1884. These estimates of the II trustees, as also those for the purchase of I additional land at each hospital for the [I purpose of providing employment for the I patients. I recommend to your favorable II consideration. H The officers of the two hospitals submit II full information relative to their manage- I ment during the biennial period just I closed, from which it appears that cure I and efficiency still characterize the conduct I of the affairs of theae institutions. H The trustees report expenditures for the I past two years as follows: fl lnt Hospital. 2d Hospital fl B-oiMingaiidfßniishing.£l33,723.lß 8128,982.28 I Current expenses, 1831.. 103,438.24 35.834.2tf I Current expenses, 188<!. 113,100.77 46,3G.'i.61 fl The estimated current expenses for the next I two rears are: Ist Hospital. 2d Hospital. I 1883 $181,625.00 $62,400.00 I 1834 141,875.00 72,800.00 fl Further appropriations are asked: fl Ist Hospital. 2d Hospital. I For additional heating H and repairs $18,000 00 I For detached ward... 25,000 00 fl For purchase of land, outhoosee, water supply 8,400 00 $10,000 00 fl For lighting and re- pairs 21,000 00 I For new wing with furniture 83.000 00 I The average weekly coat of maintenance I per capita was $3.76 and $3.82 for 1881 I and 1882 respectively at St. Peter, and I $4 and $4.13 at Rochester. ■ The cash value of farm products are I given at $27,984.56 at St. Peter and $9,- I 712.50 at Rochester for the two years. H In August last I designated a number of I citizens of the state distinguished for their I acquaintance with, and interest heretofore I manifested in the subject of public chari- I ties and reforms, to represent the state at I the ''National Conference of Charities and I Corrections." held in Madison, Wisconsin. I They discharged the trust with which they I were delegated with great credit to them- fl selves and the state. I invite your atten- fl tion to their report which will be submit- fl ted to you. H Amorig those best informed in regard to fl the charitable and correctional institutions fl of the several states, the opinion apparent- fl Hly prevails that there £%bttld be in every state a board of state oMrlties, by which general information and . thorough inspec tion can be had of all charitable and cor rectional work. These boards have been established in nine states, the most noted for their excellent charitable and penal in stitutions, and others are now considering I the question- of adopting this system. These boards, acquainting themselves with the institutions of their several state?, and their necessities, become the medium at I communicating to the legislature whatever H relates to their management and their pos- I sible improvement. The local boards of H trustees of the various institutions are not superseded; with them rest the same re sponsibilities and duties as before, out la Hthe discharge thereof they are aided Ly I s-ch advisory supervision. The system in. I various states differs in some particular., being advisory in some and administrative Bin others. -The weight of opinion now in clines to favor making these hoards, .advi sory rather than executive, and thai, their purpose should be to keep the public and the legislature fully advised of the condi- I tion and needs of the institutions subject H to their supervision. | These boards are found to bo most most H effective when they serve without compen- H sation, their expenses simply being met by I the state. Such a board, if selected with I proper care, being wholly non-political ■ and composed of men of acknowledged ■ ability and information, who would ren ■ der this service from their interest in pub ■ lie reformatory and penal institutions ■ would, from study of the charitable sys ■ terns and institutions elsewhere, soon be- - I come an authority as to what is best and ■ most necessary for their own state. They ■ would inform themselves aa to the condi- I tion and management. of county alms. I houses, jails, reformatories, etc., and be- I come not only fit to inspect, criticise and ■ supervise the management of such institu ■ tions, but competent to advise as to what H may be necessary in securing their effi ■ ciency. H, EDUCATION. Hi The continued development of the edu- H cational interests of the stale hp.s been II commensurate with its growth in other re HI spects. The report of the superintendent I of public instruction is replete with valua- H ble suggestions looking to the perfection I of our system of education which is al- I ready the pride of every citizen. Though I the superintendent's criticism of some I features of the management of our com- H mon schools under existing laws and I practices, woald indicate there is yet room H ior improvement in directions suggested, I yet the facts established by the statistical I exhibits and other information furnished by H his report, are an assurance that oar system I is gradually but surely attaining that de ■ gree of perfection which was the hope of I its founders, and which will prove the I crowning glory of the commonwealth. H There has been an increase in the enroll- I ment in our public schools during the past ■ two years of 22,638, the total being 196,238- I in 1882 at against 173,600 in 1880. "There I have been erected 567 school buildings at I a cost of $759,022. The total number of I school houses now in use is given at 4,260, ■ valued at $3,947,857. There has been se- - ■ cured $3,766,665.79 and expended 3,844- H 866.49 on account of our public schools I during the past two years. The magnifi- I cent permanent school fund of the state. ■ which it is estimated will amount to $18,. ■ 000,000 when the lands are all sold, will ■ constitute an endowment that will place I our system of popular education upon a I most enduring basis. The various recom- I mendations of the superintendent will com - mand your attention and need not be re capitulated here. I especially concur, however, in the recommendation that the position of county superintendent be made no longer a political office. The three Normal schools are now dem onstrating their value and efficiency as an adjunct of our educational system. The state is realizing upon its investment in these institutions in a manner that prom- ises ample returns for all their cost and care. The influence of the well-trained teachers supplied by these schools is ap parent in the improved methods of instruc tion in our common schools and in the more elevated standard of the profession that has prevailed the past few years. The enrollment of these schools has been as follows: . Winona:../..;.... l&l. 1882. Winona 455. 439 llankato 237 335 ISt. Cloud 257 254 T0ta1.. ... 939 1028 The current expense account show dis bursements to have been; 1331. 1882. At Winona 815,878 91 $17,007 98 At Mankato 14,9J4 20 14,0.51 47 At St. Cloud 15,071 14,442 38 Total 345,350 6J $46,08183- The report of the normal board account* for $6,950 expended for permanent im provements the past year and recommends alterations and enlargements of the build ings at Mankato and St. Cloud, the neces sity for which is represented to be most urgent. The schools have graduated 129 teachers the past two years and 879 since their es tablisment. , Under the act for the encouragement of higher education, aid has bsen extended the last year to thirty-eight schools through out the state. The commission constitut ing the "High School Board," have sought, by much effort to encourage and enlarge the work designed for these schools to ac complish, and they feel much gratification at the result already attained. It id ex pected that these school? in time will con tribute liberally from the students they may gradaate, to swell the classes of the university. The report of the board, of regents will acquaint you with the affairs of the univer sity. The regents express satisfaction with the work the university is doing and the progress it has made during the past two years in establishing .tself upon a basis of recognized rank and usefulness. Additions have been made to the campus of the university, and the grounds greatly improved by the enlarged limits to which they have thus been extended. Plans have been adopted for the erection of the new buildings long in contemplation and for I which appropriations were made in 1881. It is the design of the board that the build ings for the gymnasium, museum, library,, observatory and department of engineer ing shall be pushed to completion as rap idly as practicable. Under the authority of the act of 1881. th» v regents have made an advantageous, arrangement, by which the experimental farm purchased some years ago is being: disposed of and the proceeds invested in another farm in a much more desirable lo cation | for the purpose. The operation, will show a handsome balance after the new farm is fully paid . for and equipped. PUBLIC IXUIISEB. The report of the public examiner con* tains many suggestions and recommenda tions which should receive your considera tion. __' - ■-'••'.'"'.'r\vvo.i: ■ From his examination of the state insti tution it has been made to upbear thai much carelessness and neglect has pre vailed in the past, relative to the offioinl bonds of the treasurers or disbursing offi cers of some of the institutions and their boards of ■ contra]. This state of things, induced somewhat by defects ia the law. might have resulted in much public loss but for our good fortune in having these positions filled by men of integrity and re- t sponsibility. The defects referred to should be remedied without delay, and the provisions of the statuto upon the snbject. i