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'"' Tllb bALT LAKL TK1B.UNE, WEDNbSDAV MORNING, JAMiARV 15, 1913. lo fl Governor - Sjwy's Message to the Tenth Legislative Assembly of Utah I I January 11. '10-13. itbro-rTho-law im cxocutlvo the duty ; 5e legislature, by to condition of the itplluncc Willi the i;.7 tfcerefqre,. that nth executive jnea c'n? Utah. L the -revenue of the as Sl.490.906.70, do-ht-mlll levy on.. an f $194.:;G.S50. For asKCrfficd valuation stutc will receive i the levy of -seven Mowing: 1 fler cent :h, etc Tho state tie redemptions on 1012. during the van' 5 ,7,o32.90. mak froni taxation for S12 of $2,9S0.593.92. state receives for 000.7 1, ,,thc .balance, ipportloncd to the lgh "schools and the Rtltu lions. For the ip to November "10, :d as general rove Lher than taxation public lands funds l 6poeia funds) the 5L7t$S,9G8.99.. which l the receipts from l maJcea a total of state for general actual 'expenditure 2, wag 2,337,5S.12, of i5S,3S4.61. Un nd pursuant to leg Micro Is yet to be calendar year 1912. uico df lht capltol ),000' must 'he ro turo yot to be met s of the static Dur ecoraber, after the jar and within the aln money's Were ral revenue of the sources other than the end of the cal II .doubtless develop, if all accounts, that the calendar years teed tho revenues, ilshcd on request of T the heads of de jtitutlons; etc., the ires for calendar rill exceed tho cutl !G.27S.1G, the estl belng to.257.43i;.:S, revenue 1h $2;101, ires from the geH- il yeara 1911-12 ag the cBtlinatnd x endar years 1911-15, rl for 1909-10. T.'ero, ing account of un '.Docemher 1. 1912, ded during Deccm tho estimated ox-' ars 1011-12 will fall xpcndlturcs. statement you will entire tux revenue years 1911-1 tJ (?2, 18 was devoted to nd high schools and lonal institutions a3 The legislature of Iain sums for cdu i addition to the slty. the college., in nt, farmers' and do Ututes. agricultural tho branch normal. H5r tho tcaf and Blind, Jn HL School for Fooble Minded H to certain school districts, together with deficits and ullohs. dp:Taximatcf".-.$48t',f aH-a total of 52.2S2.5SI-1S del. BKratlon f rom a. 'total tax revo tuHo 5S3.9-, and this calculation QK'o'f tho proceeds of a $P00.0CO fcpptpprlatcd. .to the university flBay present this mnttcr to ym permlt mo to sumuarJsJe. Tic rBtatctncnt tjecgo.tes kico'Jie pOHftltures on the calendar baus, fKito exponlitus r schools . made du'rln sihool ,yar Bitatlon Income, bn.JMOO.30S.70 4Mti4lon lcomc, H2.. I,442,lol.o2 Kalesmu 47,,32.90 K1 diitrlct s4jof jKlalion' ''hy4lpjVo ' ot 11 Agrlcura. y oqo oq B insllTuf J .l 30.000.00 IKiuKtrlar sehool..,. . fJ4nIO00.O0 JKrialu ochool dfctfj f 10.000.00 by board of, hi Kl, "....( 1 SSu,725.S0' KKV'cm'uInlug for.- -Hitt; purpoacn i3 .- J jKUlw. less tha.n r.ent of the l lax rcveituo V ng and v.ltn state has imJ; i BJaltt Hl onK, otht-r lb: catlonal, al JlicUartniciiUJ and m Intaamtal f&CH of govcrmn icluding t c asldo of vedQui'iiidK and the Et on stiito bohi ub pro Klhc funds for rfic, n tba 1911 EtffB id ' SSHr of ic have been 'r-U. bringing ml bonded inJc of.ljn.- aUU6 K1 bonds ncco'sB nial inter- hnmtlon turii uat bo act k'.arthls pcasion , MfctMKlsliLturrt of inrlscd tli" Klutc of the ton-i d Irhuc of Kl of. f" Vdo B .iva'iU'. tin pfrt: tt aside Ka&Ul building pv riio board te '0Vals,iaurl - fo S Bi-tbS'C$fi"o0 upprop cover lrl tn' tho rolsBUo P'pocm- -(Mii that thcro. mnicdJotB tor tlls -f irlall(tu HlJ'''?inri' tli'f f o t mr hnv k"1 I Summary of the Governor's Message ., Rcviowj financial condition of the ystato jd.v giver, estimates of ( rovenucs ind expenditures for IDKJ. 34; thinVs -with careful manacc ) mciifc nocfesity for capitol bond ia- sue may rever arise. Declares prcsonfc rcvcniio Rvstoni 5 inadeauatt and . unjust; regrots failure oftpooplc to adopt eonstitu- tional nJiieadinent; commcuds vonort ( of spccIHcommission appointed to S study revejue laws and urges lcj'ia- lation a oiling a remedy. Kcport5 Stall's educational instl- tutioiiB iu tmprecedentedly nratifv S lug eondiion; consolidation of , pcliool distrtta lias resulted in crcat. i Qdvantagcs. Rcvicwa two years' PchJeveincnt; and neods of Univcr S ' sity of TCJttft Agricultural college. School for leaf aid Blind and State ( Industrial siiool. Intermediate ro- formatory1 rcomuiendod. ) Assorts oiico of secretary of slate ) is growinjf norc important - every ( year; revfewi multitndinoua duties s cf secrotary ,aud recommends an. S thorizatlon f or iucreased force. v - Is speciiUy strong in .praise of present attrn9y general, paying nar- ticular attcition to accomplislimenti the Investment, or the publla buildings fund, so that tistcad of converting the securities, as iulliorized and dirtfetod, these funds are still earning Interest for ' our public buildings. ,Jn connection ivlth the handling of the capltol funds. I m pleased to statu that tile 5750.000 appropriated for capltol building purpose has been left In the general fund accnml and checked against by tho capltol ominlssion only- to meet the prellmlnar' pxpenscs of the capltol building. TJie -vreiencc of this large amount 'in the Cneial fund has enabled tho state io cordua its business on a. cash basis and covistnd tho necessity of 'meeting the erepcase of temporary over- ; drafts a. nccesslt- yhlch arose during a ; portion of even' hlendar year since statohdod, prior to 191 L. By reason of this arrangement ChCfSlO.OOO appropriated . In 1911 to cover lntcrt?C)n overdrafts re- 1 mains intact. TIip road and unljcrsltv bonds v.vre noU-ffli'ed until Nbvenber IS and Decem ber 17, 1911, fouran bne-half 'and flvo and one-half months.; respectively, after their authorization; Ind then only be cause the absolute necessity had arisen for the proceeds In hcetlng Obligations already contracted in Promoting tho ob jects for wluch the (bond Issues vere authorlutd. The bond) were sold at par and accrued Interest. i that 59500 of tho 533.G00 appropriated, loincot interest July 1. 1911. to December 31, 1912. remains In tho treasury, I Revenue and (Taxation. It is apparent from thS foreKOIng state ment thai the ;most Important matter that will eiigngo" vour' attention during tho present session luilhc rjuestlon of revenue. For lhij suojeol I bespeak your most thoughtful consideration, j Under our sygtciji tte state depends primarily for its revenu, upon a plan of taxation that conthnplitcs a uniform and ecjual rate of aiscfnuent and taxa tion on all property,, In tho state, with certain exemptions. corJJlng to Its valuo 'slinll 'puyU" Inc in proportion 10 the valuo of Ms. Jcr o- its property. In every cxetMitlvoilncsiagc to Uio leg islature sluco statel'od attention lios been called to t.hoJ inadutnuu-y of our laws and the. iaxitym Inclr application in effcctlnz throushcnil tin slate n uni form and equal taxation in proportion no tb-' aluo of individual and corporate holdings. .Speolal stli-ss was laid upon IhlK subject tu-o'yoarJ aSP by the board of equalization In its'iienMal report and tho matter was strousjly urged upoh the leglslaturo as un ohjett rhrthy Its care ful consideration. Th3 IcplBlaturo inves tigated the fcubjoct t(ilVouplily and, con ftHTlng in the recommendations made as affordinc the ncttjssaiy .mcann for .ctiuallr.lug tho tax bun on. passed the re quired resolution for submitting the pro posed amendments iX tho voto of tho people, providing in J"he tncnntlme for tho creation of a comihtesioii on revenue and taxation lo he Ippolntea by the governor, -which 'commission woh charged with the duty of TnvclgaOng tho reve nue and ' luxation system in -nils state and in the various bfalos of tho union, Including thp rVportK o( expert tax com nilsslonci' and rnporliig to tho legisla ture of 1913' with It-4 recommendations for adoption' in llifs stalo. M'hrough a canipaigi of perversion, miiiroprcsenia tron and 5:lf-Iritcrcl on the part of ceitalil Individuals and corporate Interests . jyhp. saw .in Itlio adoption of the amendment a- crrjalnly mat incy would bo)y,oiiglit p Ijcr an pqual bur don of Ibe. Ua.Uon of. .Op etatp, tho pro posals were .lotjl,. and a'irle 0'rt.m the ad vantage .of .poisfr V5)pk .vh cpijvprehcnf Ivo report of tvci.8UiJo.wa.V0 of revenuo and taxation, wblqb. J.. "ioritpu?ly.Mmitr.d be cause of tlic defeat of t,)V) amendments upon the ad9Ptlg5i..of u'hich was based very largely their rcacirfrh and planning you And yourselves very much n tho saino position lo which, .provlous legisla tors have found theinMlvc3, vh., per fects (.ognlr.aut of the fact that incqual ltj;lf not mult InJuHllnA pennratp-s our taxation sytuom: wHhouJ tho pom to do v.'hut Is nnlversalry. rpognlzcd should be done, bc-sleged for roller bv thono who are overtaxed, and Taco to face With the problem of maltinc .a; 41 bill meet a 51. 'JO ncccsottj' wit Iinut 'placing an addi tional burden, on tho IndjrTduuL who pro vided tho dollar,.. . . .x4. . Here is one of the Jrtiquilics of our 'taxation yystrni. in, a nlililiiJl: .JtTieu .uas 1S1500, purchases a lot hjr IU0(, borrows 51500 and erects a ?i!0i$ lK'ine. Comes then the iishobkoi- and c.-'ft tho valuo of houao and lot for ajeHiuriit puriwscB at 50 per cent of Its victual valuo, or iloOO. The (usosiior stew .Insirte ana aa eeefec the household furniture (that la "p.jrchancc being purchaVi-d on tJio in stallment plan) -t 5200. :tind Jones payn at a levy rale varying itofn '-3 to 50 mills, according to hie location ' In tho SLatfj. The man who owns tho uiorlgngo has a II ri 1 lifii mi .lonta's properly for one half ita total value. VildjJr the eoistlt.u tlou Ibo mortgagee's oquftv Jh non-taxable. But Jones lb ase.Wf,l at, Urn actbal cash value of bin equityl nd biiala tho cuUio burden of taxation because Tto fullillM ono of tho higheir.. olvlo ob'isa tlona and lH'na up to a decont etanda.rd of Auiorican citizonbhlp by .Impiwing his holdings. Drown has M3f0; Invests' It In live shares of covporoM? slocjc of thj par vplue of 5100 per circle but celling at 5800. lr every dollar llo pays or tliat oloclc thr coiTioratlorr har at Uaot a dollar in sllt-cdge oecurlty. If the cor poration. boppciiK to b capitalized for $100,000, It has JoOO,O0O In jiaautsl to bring tho market 'price. Thei'.! ,aro certain ftnancial corrmratlonu in which he could Invest which hold amoneft their . assotsi real estate, lot no a.v. for cotnparalh'o purpores. valuefl ut ?90,000. ;ind stockH hnd bdndr, valued at ?i 10.000,. Chances arc vou win flid tho real -stat lifted in tho statement of tho Institution tiha ridicu lously low Uguro nd llf& JJin.OOo In slocks and bondA carried a.t,par and not mm'Jteu.valinA AVheji Urn fetatyniMita of Hiw'Ji.'ornyniUonii :iro tilcui for uJiaoss niivjruno:ios, however, Vou will tind claimed aij'an offHi't to this capital , of SIOO.000 about ?rl'.000 drvlUaudif-tor-rcnl cutnte. after wblcli -a furim'a- reduction nr-about5 pur eetft lu lnadb-by Jhc as 'jiisor. prvnmably to inakrf. Jb(; jjAHrsji meut u;ilfcnvn Ith 'other iPtou','' t rwluctiou b ing nmib-' un A .qnicou Ht!siimp?ioii mat a ' coi rettuii'ii m value-i' 0v beun mmle.- m tufir f '!-,-000) I 1cc for iisaotiMtnonrAurp (' y on-lWCUtJ tho actual val--v;W U oelc A'nd in Ibtf niORiillmn proWnviJrnJ V,vl-' tlcnde and th cormvmv putter Jifl in connection with collection of in heritance taxc3. Gives reports of state treasurer and stato auditor, sayine much bone fit is Hhown'hy reason of reduction in tax levy. Touching stato prisoiu governor says convict work on roads has proved astouiBlLingiy successful: prison farm and. property hcing rapidly improved. Recommends electrocution for caw. Ital crimes instead of hantrinsr or shooting. In connection with Stato Mental hospital affairs, governor calls ospecial attention to superintend ent's recommendation for secreca Uon and sterilization of those un fit for parenthood. Holds state fair to he one of Utah's hest educational institutions and is pleased to noto constant im provement at grounds and iu class of oxhiblts. Devotes much attention to stato irrigation projects and to investment of state mouey in irrigation enter prises and municipal "bonds. Calls attention to 'necessity of legislation Of course, if the Institution has surplus and undivided profit accounts (for I re fer to banking conoorns) the proportion 'tfoi tax is greater. But such accounts being subject to taxation are rarely al lowed to accumulate by some institu tions, being wiped out by special and extra dividends, and in such emergencies as arise about assessment time they are Cleared from the boohs bv cross entries that result In the obliteration of the profit Rnd loss account and the corre sponding reduction of tho real estate and slochs and bonds accounts. So tho.we have institutions carrying on their books listed as resources, "real estate",, .and "stocks and bonds" accounts that repre sent but a fraction of the value llxed thereon for assessment purposes, and. 1 may add, wo have mercantile institutions carrying stock Inventories for assessment i purposes that represent but a frac'lVip ; of in, net uat value of the merchandise on hand. While all this Is going on we 1 have other banking institutions that are I fair In carrying capital, surplus and un- : divided prollt accounts, with very little real estate to offset, and such Institu-J tlons are assessed In proportion lo value 1 very close to real estate. From the following figures you will gain an idea, also, of the manner In which individuals escape taxation on money and solvent credits. According to national and stale consolidated bank statements published near tho close of the year 19l'l. and just prior to tho time for levying JM2 assessments thcro were commercial and savings deposits In the national and state banks amounting to J&5.S2I.U9.3I. yet $7.r00,G93 only of money and solvent credits wore returned In the entire state for assessment purposes In 191". What applies lo banks and Individuals who.havo bank deposits. In dodging tax ation, applies equally to other corporate Interests in the stale that follow tho practice with the assistanco of expert tax agenU", with the result that while visible property, including real estate .ind Improvements and visible personal prop erty, fall under a heavy burden of taxa-tkin,- the.Invlslblcr or so-called intangible revenue-producing Investments, escape bearing their Just proportion. The ex press object of one of the constitutional amendments (In line with the moat ad vanced Ideas on taxation of intangible .properly wa3 to securo exemptions for the overburdened taxpayer whose proper ty, Including personal property, is wholly visible, and to so classify intangible, low interest-bearing securities that this prop er! v. which now wholly escapes taxation (although tho law provides for its taxa tion), could be assessed at a. lower rate and thereby become a factor in bearing tin burdens or taxation for the etat. The foot Js, that the only property of Ibis nature wlndi cannot escape taxation t properly In probate, where the entire properly. Including money and Interest bearing securities, is assessed at a uni form rate, in states where the system haa been adopted, practical experience has deinonstia ted that evasion has been l minimized and even at. a low lax rate tho revenues have been increased, while tho niorjl phase of the matter has under gone a decided change for the better. It being no longer necessary for business ethics to differ from ethics governing taxation. Jl Is nifro bosh for people to inform you that the state board of equalization can remedy this condition. While the board has power and docs llx the value for assessment on our public utility cor porations and the not proceeds ot mines; what can tho board do whn It finds a. county asHcssmenl on reul estate varying from 10 lo 70 per cent of actual vnhiuV It has power only to equalize between eountlea and ha.s no power to cqtiullze Individual assent iponts i1lhln the coun ty. It t obvioup. therefore, that an ar bitrary increase in a particular class of property within- tho county will but em phasize the unfairness of the. assessment, idncc the proporty assessed at 70 per cent its actual value, must bo raised along with the property In the tamo ola"s3 as HCRsed at 10 per cent its actual value, and, taking the two figures as sample percentages, if the high one wore raised SO per cent it would bo paying on a 91 per cent, basis of value, while the low one would he paying on tho basis of 13 per cent, and thus the Iniquitous condition would bo exaggerated. The- mifairni'Bti of the cytim falls par ticularly on tho state In its interest In taxation. Tho local aEcsbors are prac tically tho tole arbiters of Individual ob ligations of cltlKfimihlp Insofar as those obligations involve responsibility In pro ducing ruvenu a condition thut should uovcr bo permitted to prevail. Unreasonable participation In (he pro ceeds of the public utilities tax places some, counties in such financial circum stances that local asEcssmenls and levies are. ridiculously low, whilo total lack ot participation by certain other counties necessitates a high percentage of value for assessment purposes nnd a hli;h rate of lovy. Tn the. fir.it Inttanco Jow assts ments reduce the Income to Iho rita.te, even though expenses of local govern ment may be easily met with the roVe tuy. under reduced assessment and levies. In the aecond instance the peo ple are. bctrlng an unjust tax in propor tion to tho valuo of tholr property. Vet Uib county that ;eta tho largo lne.omo from the -nubile utility tax and pays pro portionately small tax to tho slate par ticipates fully In the ciltdrlbntiou of the r.-mill dltfj-rict ac-Tiool fmut andvthe J-mfll hlsh tfchoo! ruud act aside from the 7$ mlll Ptato lovj. T have alread.T stated that much of the study and research of tho commis sion on rovonue and la:cnllon wan dono with Ihrt expectation that tho propetied amendments would bo accepted and .its preliminary report was based largelron the oxpeetuLkm. The .amendment tailed, however, and the commission cannot nt thin lime place before you for your con sideration thu bills originally Intended lo reconstruct our la.xallou system. Wjj ro nort with suggested legislation yfllj be presented to you. Thu. report Is cbmpre hytiHlvo .and proc into this matter pf tax ation more fullv than any ollic-i' tato document on UiIh subject. It Js mropcr that I should call your attention o the fact; that It la for t Tils commission, pur suant to the provisions of the mw'ly Tvhlci It lvas created, to report nvou IKs finding n! rre..iiimcndntloii'5 relnt, liur in tljf. Unport.mt matter. Tli com ! mejt y)ite; I make i made fiv n 'he Irf-fcd point i.f o"e uho-uux find mumt ; i-iifty Ip ohsr.ve ihe practical opi ration I Ait vbr iaxntioii ami . erniiuu lav: . Afy I Irilerenr Ihlii mn tier In not RclfiaK ' iftcithw e standpoint of u JUubllc M -.- '4. i looking to protecting state's richts in lands on national forests. lias numerous recommendations re spotting tlie building of state ror-ds under supervision of state road commission, declarine tho eood roads movement to be of first importance. Oommeuds activities of state dairv and food department, and details work of state chemist iu analvT.ina food products and wator. Sanitary conditions have been vastly .iui provod. Stato insurauco department de clared to he one of state's most im portant institutions, havimr helped put tho insuranco business on a high plauc. The vital auestions affectlntr water rights are discussed under head of stato engineer. Oo-opcratlon of United States government in oh tatning information on water re sources continues to be invited, and legislature i3 urgod to make appro priation to meet government "half way." Fish and game have prospored. says message, until now there is noted a lareo increase in both bte and little game and in flsh. Estab- official or a, tax-paying resident. My solo desire Is to secure a readjustment of the tax system so that the burden will b equalized. And whatever laws can bo passed should be adopted without re 1 gard to persons or Interests. Education. i What Utah Is doing alon- educational I lines Is fully set forth In the reports of I the stale superintendent of public In struction, the University of Utah, the I Agricultural colleseand tho State School I for the Deaf and Blind. In so far as the state Ik concerned tho district schools, the high schools, the Unlvorslty of Utah, the branch normal school and tfie Agricultural college are j no? established on a fixed and pcrma , nent income bas.'s, the district schools ! receiving S mills,- the high schools one half mill and the higher institutions -S j I per cent of the balance of the state tax I levy, for a lixed maintenance income. I The report of the state superintendent j discloses a remarkable Interest in edu i cation in the state, as reflected in the i expenditure?-for the elementary and high i schools. For the biennial period eiid I ing Juno 30. 1912, the total expendi ! lure was .V7.f97..',.04 0'.'. The per capita expenditure for the last year, based on a school population of lll.SMl, was $::5.S8. I In his renort the state superintendent I advances excellent reasons for the con solidation of school districts, pointing out ; the advantages that have come to those sections of the state where consolidation ! has been effected. ITc calls attention to , the fact that at the close of the last school year. $-U,90G.I0 of the state and i county school funds romaincd on hand j largely in unconsolidated districts. Two I years ago the attention of the legislature I was called to a similar condition where j certain school districts, after meeting all expenses, were hoarding f-chool funds. At the same time certain other sections of the stale were calling upon the legisla ture for special appropriations to insure the operation of their district schools dur ing the- entire-erhool year- In" this con nection, 1 urgo that no appropriation be mude from the general fund of tho state to meet strictly school district expendi tures. Many school buildings have been erect ed and remodeled during fhe past two years, at a cot-t. of Jl,:;7o.;:7.".."0. fn con nection with the erection of school build ings, the commission created lo pass upon plans and specifications has taken an active part, revising plans to tho end that lighting, heating and ventilation be eerefullv safeguarded In all buildings. Tho puggestlun that provision be made where by the commission may extend Iho scope of its activities to include careful In spection of all buildings in course of construction, to see to it that itn recom mendations are carried out. ie an excel lent one. Every ponsiblo precaution should he taken to Insure the best possible school buildings. During the past two years thirty-two high schools have met the required stan dard and are participating in tho slat high school fund provided by the bust legislature. Through the extension of state aid the high school work of the slate has had a decided grov.Mh. The establishment of public libraries has been carried on with excellent re sults! and today the state hnt twenty public libraries built unci established at comparatively slight cost to thu taa. payerH. 'Much headway has been made in tho movomonu looking toward the health of the child. Aside from compli ance with tlie requirements of law relat ing to the construction of school build ings, the provision of the bill rooulrlng examination of school children for defec tive ight have been carried out and Icsif-ons tn sanltatJon, clcanllnes.v and health preservation have beep given. Altogether the report of the stato su perintendent shows a most satisfjuiiory condition of our educational affair; and hit! recommendations for tho continued improvement of our already excellent system am worthy your careful consid eration. University of Utah. At the 1911 session of the legislature, the university was placed on a so-called permanent income basis through tho adoption of a mcasurca giving to the higher educational institutions 2S per cent of the net revenues to tho statu through taxation as a malnlenuncc fund. Hy legislative pVotiston, throo and one half mills of tho general levy are set aside for dlstriot and high school pur poses and In the balance of the stato levy as a higher educational maintenance fund the university, tho college and Ihe branch normal school participate to the extent of 2S per cent, distributed to tho Inutilutlons on the following basis: Uni versity. Gl.-lo' per cent: Agricultural col lege. 2S.31 per cent: branch normal school. 7.'.T. per cut. At the time the maintenance bill was before tho legisla ture it was. urged that even though the percentage allowed would mean In the beginning .a sacrifice It. the institutions In their rcapcctlvo maintenance funds, It would have the merit ot establishing a fixed and dependable revenue and per mit tho Institutions to grow with the stato through a given pcrccntag of Us income In 1912 tho tax levy for tate purposes was reduced one-half mill, which re sulted in the higher Inutilutlons falling short of the Incomo estimated. For tho school ycuiK 1911-1912 and lOR'-IOlo, baaed on its total participation In tax revenue, tho university Js compolled to .operate 6h 'a" maintenance fund but slightly in" 'r,x"cea of tho maintenance fund pr'dvfded"for tho provlouu biennial period. On 'the. other .hand, the agri cultural "eo'les'c. through Us percentage of participation In the tax ruvenue for higher lnstltutlone- makes a substantial gain in maintenance revenue during , the school years 1911-1912 and 1912-191:! over tho previous biennial period. The brand" normal cchool, under tho plan of dlstrl-I button and tho contingencies which have I arltfcn, tlndu Itself with u maintenance fund for tho present blcnnln! period aboiit equal to tho appropriation for the previ ous hlcnnlal period. i The regents of the university urge in thefr report the substitution of the ex luting income law by a bill providing or fc lted and permanent Income or iilni (rtitlw of one mlH foniUie university and uue-tenth of -a niUl -for ihe branch nor mal school for maintcsaiico 'purples. In this huggentlbn I1 cannot concuri. It u obvious that as thu tolaraiee3ml"fyltiA ttIon of tho ttt3,Jtt""5 jejw 3nf lishment of elk parks and preserves ' for big gamo is given hearty ap- proval. ( i Agricultural commissloucr haa r bcon commendably active, csneclallv S j , In that which relates to suppression ) . ; of fruit diseases and posts and in (j providing better marketing arrange- S mcntc. S I Sufficient appropriation is re-om- mended for National Guard, which 5 is declared to be in splendid shape. ) Satisfactory progress has been made on tho new capltoL and lctris- laturc of 1015 will undoubtedly be housed in new quarters, . ? Utah should bo creditably rcuro- ? souted at both San Francisco and ( San Diego expositions in 1015. Prcs- S cut legislature is urged to make, an- ) propriatlons. This subject is Riveu marked mention for reason that-. I thousands of exposition visitors will ) pass through "Utah. Pensions by stato to Indian war ) veterans is uroed in order to hasten ) proper recognition by. government "Secapitulatlon shows state institu- I tions own proportv of a v?lue of (! ?3,560,275.-10. S I be correspondingly reduced, and if a dellnltc portion of the state's revenue, specified in mills. Is set aside as a main tenance fund for the higher Institutions, these Institutions will continue to par ticipate at the specified figure, regard less or the fact that the state's partici pation will be reduced, and instead of growing with the state they will shortly be growing in revenue far beyond tho the present maintenance law continue in force, there are two means by which additional funds could be given these Institutions, both reached by slight amendments. One. an amendment ex tending to them participation in all tax sale redemptions The oilier, making the, participation In yearly state revenue available for expenditure during fiscal in stead of school years. Through such ar rangement, the 1912 recnuett would ap Ply to U'12 expenditures, and so on. u bile such arrangement would neces sitate a readjustment In the periods for expenditure. U would result in an in crease for annual expenditures equal to tho amount of unexpended balances as of January l, lyu. To explain: Such balances wore intended to maintain the Institutions to "June SO, 1911. after which Ihcy were to operate under the fixed in come basis, operating July 1, 19Ili to June :i0. 1912. on the tax rcvenucn or 1911. and so on. The amendment would result in reducing the period under which they are to operate on the pres ent Axed Incomo by six months. It is an arrangement, however, against which strong objections can bo urged espe cially that It upsets the present plan of school income and expenditures during school years, and would doubtless cause inconvenience since tho tax revenues for a calendar year arc often remitted to the state during the following year. H has been my observation In tho past that the legislators of Utah havc been liberal in their provision for the educa tional institutions, and should tho liw be repealed I have no fear that the -university. 1 hc college and the normal nchool will onjoy the support of this and futuro legislatures Just as far as the income of the state will permit. The president and. the board of re gents of the university report excellent progress during the past two years. An Increased number of students has been In attendance while standards have been raised. The president's report reviews the work of the various departments in detail. In July ot 1912 ground was broken for the main building for the universltv campus authorized by the, legislature of 1911 and tho building Is now well under way of cons-traction. It will bo flrc-i proof and substantial and will be ready for occupancy next September. For buildings the unUorslty la asking an appropriation at your hands of 5271, ;oo, .13 follows: j Normal building with cqulpme.nt.G,000 Auditorium as purt of main build ing 7.".000 Gymnasium for young women ::0,000 Completion of young men's gym nasium 22.100 Heating plant CVH'O Custodian's bouse 3.30') Dormitory for women students.... 30,000 Electric plant 9,000 The following appropriations arc re quested for improvements at the Slate Normal school: For making small lake 51,000! ttoof repairs G00 j Smokestack extension , Uo0 F.xfru boiler tor healing plant 500 Barn '. 1.000 Total 'G.yoO Agricultural College. Increased attendance and the exten sion of courses of btudy at the agricul tural coll ego during ihe past two years aro taing accommodations of this insti tution to the limit. The registration at tho college at iho present time is 13S0. representing an Increased registration of j 6G;: over that of live ycara ago. The number of students of college grado has Increased In tlvc yeari more ihuu three fold, there now being 116 students of this grade. In his report the president states that Ihey are working toward a gradual elimi nation of high school work at the col lege, it being planned to dispense with the first .year's work during tho coming school ycur. With Iho IncrcaKcd num ber of high schools In the stale the elimi nation of high tjdiool work should be ef fected promptly. Faculty scholarships havo been ad vanced during the past two ycar3 and special courses have been provided lo accommodate! thoao desirous of spending one or two years In preparation for their chosen 1116 work". Tho agricultural engi neering Vourse has been establlbbed pur suant to the act of 1911 and the ex tension dlvlblon of the college reorganized, with headquarters at Logan. Thousands of persons' "(ire' annually av.iillgn them selves of the advantages of, tnlo depart ment. The gnnnasfum ' has "b'ecn com pleted nnd tho power plant Is practi cally Installed. For the ennulng biennial period the board of trustees submits the following estimates: Chemistry building 65,000 Dairy building and r;qulpmoiif.v. , 20,000 Roof mechanical arts building.... 9,000 Shed for farm machinery -'.TiOO Heating plant v 2,'i,000 Total '. -.jmSOO State School for the Deaf and Blind. One hundred and thirty-nine, punjls are now enjoying the advantages. afforded by tho stato in its school for the dWif nud U;e blind- Tho educational workl at the school bus, been maintained on u high standard and marked, advancement igr evidenced ill ftpeoeh and lip-reading. In reading and general culture, inimujie. and physical education, In lunguajJo rind tbo une of English. ' During the past two years two l"7vii CHpca have been installed, ropnifcn the annex building . llnlahcd, a. 'gmnhouae constructed, and the ucraije of Jtho in 5tyu!on :.tner!a0 by the purtiiaso of ln. ereoj)aslure land. JhBiaco"Tttlfndu.nce iieccs.itnk- ad dltlpml actommpdatlpns forswMUa u.t ,tltltllli?;a:ndvi,'' board. uMt,tn,,i crf ctlari ipNjWhpor bul Jaiwand-afcpcl. 3llbwltla. rholrcaUtnfcfe. .of k-- ''jV' Sv meats for the biennial period July 1. 191!, Lo June CO, 191T,; General maintenance s 90.000 rtcnev.als and improvements G.000 Libraries G00 Burn :inl livestock 6.000 Cottage hoHpital and furnishings 7.000 bchppl building and chapel 75,000 Total jis 1,600 State Industrial School. Tour Slate Induntnal school at Ogdcn has been under the tupervbjlon of a splendid board of control, and the direct management of competent oftlcinls. all of whom have taken a deep Interest In the wclfaro or the w ay ward boys and girls who have found their way into thp insti tution. In exercising restraint and sub jecting l'ie inmates of this Institution to strict discipline, It has been the aim to remove as fur o.s possible every sug gestion of enforced cominemcnt and make thctlustitiillon a homo and a school. A systematic, thorough lnvefctlgation of the home, conditions surrounding thoso com mitted baa been carried on- bv the su perintendent through his parole ofilcers and the Information thus acquired is In corporated In a vers splendid paper by Ihe superintendent in the biennial report of the. institution. The girls' building has been completed, so that almost- complete separation of boys and girls haa been accomplished at the Institution. The board of examiners expended a portion of the funds set aside for the acquisition of land for stato in stitutions for lands and water rlghtn to be used In connection with this Institu tion. Aside from acquiring, through this purchase, an excellent water supply, val uable farming and fruit lands .havo been secured, which will be utilized). In sup plying products for the school And fur nishing employment to the. boy?. It Is gratifying to repdri a decreaso in the per capita cost of ritilnlenanco at this institution during the past two year?. I invite your atlentlou to the report of the slate parole agent soiling forth In detail the results accomplished by the industrial school, as rctlectcd in the be havior of those who Iiavc left the Insti tution. The needs of, the industrial school for the next two academic years arc set forth by the board of trustees as fol lows: General maintenance S SO.000 Instruction C'.OOc Stato parole agent and assUtant.. 5,000 Equipment, Improvements and re pairs '. 20,000 library r,00 Building 60.000 Sewer improvements, etc 3,000 Total $190,300 Secretary of State. In his biennial report for the years 1911-12, the secretary of stale renews his recommendation that the present' maxi mum corporation license tax be fixed at $250. and urges that provision be made for a more severe penalty for failure of foreign corporations to comply with tho laws of the state relating to such cor porations. Two years ago. as cx-offlcio bank com missioner, the secretary of state secured the enactment of a. new banking act. The bill passed Incorporated all bis recom mendations except three. Tho secretary of state strongly urges the repei.l of the present Loan, Trust und Guaranty Act and the enactment of a special law for tho organization and regulation of trust companies; a suggestion thai 1 heartily approve. The duties of the secretary of state arc many and exacting. In the Interests ot economy the legislature has from time tn time seen fit to impose upon his depart ment much work tliat ulUmatoly would be conducted under independent depart ments. By Irtuos of. hiB office, hc is ex offlclo a member of porno of the most active and Important state boards, among thorn the board of examiners, the board of loan commissioners, the. urmory board, tho board of regents of the Uni versity or Utah, tile board of trustees ot the Agricultural college, the state library board and the capitol commission. Until four years ;igo the insurance, business of the state was under liSs supervision. An Insuranco department was created by statute in 1909 and the work connected 1 therewith involving as It did much de tail was established under a distinct de partment. Today the secretary of slate is ex offlclo bank commissioner, am in addi tion to tho manifold and growing duties of his office ho Is supervising an cyer Inoreaslng number of banks within the fctatn. Under tho lav." provision is made for but ono bank commissioner and the one private and and seventy-eight cor porate stato banks receive tho supervision of the commissioner through tho exami nations and reports made by this exam iner. Ono examination per year Is all that to possible under present arrange ments. Such a condition should no longer 1. exist. Other states have established banking bureaus long slnco and In my opinion the people of Utah are entitled lo that protection which would bo thrown about thlr deooslts by the creation of a bureau of sufficient extent to guarantee .-(t least gcml-annual bank examinations; Under tho prcsont arrangement a. bank could eually bo wrecked and the funds of depositors lost, through bad loans and poor management, during the long inter val between stao examinations. J thcro- ' fore, urge most strongly Iho creation of a s-iato banking bureau Trlth provision for 'a Mate bank commissioner and at least two- examiners I concur In tho recom mendation of the accretary of stale that the board of examiners bo made a board of aopeal on decision of the bank com missioner in refusing to grant charters to stale banks. The tbtaTrorcIptji of the ccretary's of fice tor" the past two years w.-m 52.'J. 179.99. "Toff hundred forty-si?: eornors Mons Were orghnr7d "umjcr the laws of Iho slate vjiir(ijg' IJaC period. 'Attorney General. While iho report of tno ht'torhey gen eral will glvo you an Idco. as to the vol ume, of bigui business transacted for the state by Ills department, it will afford but meager Information regarding the board duties which by law arc Imposed upon the -attorney general, and which, with tho growth, of the stnte, are 'de manding more and more of hi lime from year .to- year. 'Phcbn board duties easily consume on:half of- htst " time' and thoy arc of such a nature that they cannot bo delegated. - - . The state's legal department requires nnd fully deserves considcral'Gn at your hands and I urge favorable notion on tho attorney goncraYs request for an appro priation of at least $11,000 for deputies tor th" ensuing blennluni. which amount will enable him to secure an additional assistant, whose service can bo devoted almoM entirely to the handling of eaees that arise under the administration of our vurioua dtuto board". The record established-by your present attorney general in-tho ma Her of tho col lection of Inheritance taxes Is a phe nomenal one. His collection of large in heritance taxes on several foreign as- tat ps, without Involving the state in liti gation. cvdrnees rare tact. By his ac coinpliahments irr' iho matter of these collections he has established tho state In such portion that thoco tuxes are mat by foreign' estates without question of the right or tho state to collect under; the law The comment of the attorney general on our present inheritance tux law aiW various suggested flanges herc ln Is- worthy your Merlons consideration. I believe that net. one in Jthe stale is better Informed on tho jp.-lev lnherl tanco Isrwa in vogue in thAj Un"; State?! than the prenent attorney cnfral and. no otta lajThotter Itiforinell aa b tho prac tical: operatfou'of 'our laV 'l I Invite, your nUeulioA to fjyt-reeoW-mendAtioit of -tbo attony-tfi?ral, . that HuMfvlelorj" -I of i-jctlorff' UdawCotuplIisd T,:twa of Utah, tfo repcamM ,aM. bis fur, Ufiiggctton for amrvhiMO. Intbc present tlnimum ponawcy oon year for the ccn-icS"ou of-jfeTanaln:eny. Through hlJ KfUclal conWrcetila Will lb", board ot pawOWaj uxM- of tm-- tecs of th(: 5uruPia' hDnl, tho attorney gcncrlf nnrtJojm Alwfowhly convinced of tho neocasMv Mr ftn es tablishment otKau.lntcrmfdfaM reforniu .toa' or penal uuiUutlon lltwten the in dustrtaUichool, JJd iho Hirjrbion, nd pxesonpi fi15riJBfJnJ why il H the rtate .should provldcaiwh an. insM tutlon. Yqv will note thatvu. similar rec-cn-.inci'.datlqn is made by tho supcrlu- IH tendent of the State Industrial gchooi. State Treasurer. The report of the state treasurer shows the following receipts und dishursemontr IH by the slate. December 1, 1910, to No- IH vombor SO, 1912-' Balance- on hand NovcipHer so, luio..:..: ..'.....'...'.';;: 02,7119. 1;; Receipts 'for '? 1911.. Wfrl.KI.pl " Receipts for -&r 1W2 .. s.c5ygoif j-i.T.isstt.;.- Gran.l total V&, 31,511.97-. 1C Disbursements for 1911 ...... KMijiLH' ' Disbursements , a f"H for 1912 2$;7l83Sitn;--fG.6S0t.e" "A jH Balance on hund November 50. 1''12 ; "..el.fidU-Ol.lO State 'Auditor. A vcrj- comprehensive refport of t.ir handling of. stale fundi is submitted bv the stale auditor. Much of Mho infor nuitlon incarj?orolvd. ,1c. .hli. -report ha been -n?cd tjy inc. In. toe. tUsrnsainn of the llnanclal copdltlon. of. thu atatn. Ho cal IH attention to the decrease. In -estimated revenues frorq. general taxation during the year 1912 ocifsloncd bv the1- rednt tion of the tax levy. .one-half uiSJI, hut points lo the fact that the reduction has been greatly appreciated by tho tax- IH payers of the state. .' That you may un dcratand Urn nvd bcncllt that came t the people through this reduction. I beg lo call your attention to the fact that during the past ten ycara tho avcrogi annual Iiicreaie In total aKHcssr-d a m t!o:i has exceeded 5S.000.000. while the, increase for 1912 over 1911 was leas than 50.000.000. So that even though tho etaU did not enjoy the returns from tho nor mal Increased assessed valuation, It was able to reduce tho Uix levy one-half mill. I invite your .special attention to jl the auditor's Htatement regarding tie operation or the present bounty law. T, is apparent that new legislation is re quired to properly handle this matter. In another part of my message, I have "H referred to this subject. .The legislation of 1911 providing for the re-recordlng of marks and brands Yin entailed a vast amount of work in the auditor's office and iu connection with this matter the auditor recommendK cor- jl tain amendments which should be udoplcd. H The following deficits- have been au tnorlzed during the yearn 1911 und 1912 by the stato board of examiners and wll' be properly certUlcd 10 tJio legislature: Stato livestock Inspector ;.?l0,00n Stato board of education 000 State auditor 2.S30 JH Unlvorslty of Utah (toilet build- ing) Capltol grounds (maintenance).... COP State engineer (Irrigation contin- gent . 10,00(1 AgrlcuUnral college (power plant). 20.000 Jl 1 Stale board of land commission- crs , 1. 7.500 Attorney general , 73' Mil cage and per diem district court stenographers 2,30 H : Bureau . of immigration, labor, and statistics a -t"o Stale coal mine Inspector. -i'..' Total , 1U0,SD jl The Incrcascl volume .of business trans actel in the auditor's' office maki j. Imperative that additional appropriation." be made for the -employment ot- -a. InrgT ! clerical force. State Prison. Complete Information regarding u,e management of the stato prison during fll the past two years may be found In the ""fl report of tho state board of correction? . The employment of ennvicta on state roads has -been carried on without Iti" ' terference with discipline or ronl'no a' . jH ; the prison, -ind it is tho opinion of prhop officials tlua tha general moral and physical condition of thi- convicts hon . been greatly Improved through work on jH tho highways. During the past two ycara many im- Jprovetncnts have been , madn. about fLe "prison ro7cnatIon, including' the con Htriictlon and equipment of a modern -dairy barn and the planting of fruit JH ) trees the labor incident to the improve ments being performed almost wholly by I the prisoners. The board of correction." : has acquired additional wator for the tn stitutlon, but a supply sufficient lo take care of the entire at r cage It not ye' owned by the stale. In view of tho fac Ibal additional water wlJI permit of more extended cultivation of the prison farm affording employment for Inmates and an increased farm production for prison use I strongly urge an appropriation for the purchase of water. JH That the death penalty be arimlnlrtcrcd by electrocution is a recommendation or M the board of corrections In svhlcb I con cur, and 1 urge upon you .the adoption ' of an amuuduienl to the present law to jH accomplish capital punishment by clci trocuifon. The daily per capita maintenance co. of prhonuris during ihe years 1911-1912 wa.i T.3& cents. IH Estimated needs for the years 191"- IH "Mntntenaucc ... ..?IC1.S) ' Graliiillca 1.30r Armory, lmprovomeuts and re- pain; r. .. Hono IH l-e plant 1,Jur Women's ward v 12,0fjf ("""""" Milk houte . T. , l.'.on Fruit trees CJO Extending water pipe line...'. 15,0"" Convict labor on rtalc roads (in- 1 eluded In estimate of road com- "H mtostonl 9,C Additional walftr supply .j.OC) M Total ... ?217,5 Is- State Mental Hospital. 'Our Institution at Provo. where. ar jH housed the unfortunates of the .state, bar, been conducted during ihe past two lean- with iucreased efficiency. AUcrntfons and Jfl nrldltlons hoA'e burn made rlUlin and H wllhout tho buildings of tJie Stato Men- H tal boMpltal (.largely by the labor of pa- H tlciitu). calculated to add to the heait1 JH comfort and-mfotr of the Inmate, whll'y' H the Institution grounds have been oy H tended by tho acqulbltlou of addition' H laud that will add materially to the Jl and farm products, affording Jieythfut jH outdoor employment for many patient An SO.OOO.gallon cement reservoir ha IH been constn;i:l?d and Is rcud for thr """"""H Impounding of watcra rooy'nz the wa tcr supply of the Institution may bo er H tablisbcd. A new dairy byfn is in conrr "HHHIH of construction. H There has --be on at s&s institution aq earnest effort on UioParl.of tho super """""""" Intoudcnt to brlngtJie mcdlc:il cpen-1- H slon 10 tne -"'cry lygbcst ataudard of eXa- Jl elency possible vndcr tho means at com- SH mund. Bv vlfe study of all admltUd H ca-JOF, and cU6sifl cation of patients, the necessity foO restraint has bnnti nunl- jH mized andtoday the Inntltttlon Is con H ducted Wth' practically no physical o H drug restraint. I invito your attention to tho .Miper iiueideni's comment on Tho Fo-called "nin'-hour law Cor woman" enacted h' H thij'last scsFlou of tho leglslaturo and l"r H effect of that law lu r.c application to H 'thl? -institution. I favor an Hmendmcnt jH to tho law making special exception in i-l its. application to tbo State Mental hoa- H pltal for tho r canons set forth by iho. su- H perlnteudcni! In bl:i report. H The hotTltai ban been conducted dur- H ing- thu past two yearf at a dally per IH capita expense or HS ontu, ' Tho department for caro 'of ,the fcoMc EH uulndrd and uun-Inninc epileptics hivi JH ic-cu maintained at tho hospital with rf- 'M suit that arc cucoumglng and wcrrant tho continuation of the name, - ' jH Tour attention s dircctod to- t'nat-'Ppr- rr"H tlon of the report of the supcrlntendfint LkM of the. fe'tate Mutal hospital dealing with 1 irtato s"grogatlou and rtcrtlliatlon, of th.0 unlit fur parenthood. Tho rccon- mendution? rn .timely.- Our aide 1a;i "H taken m1v(! iii-oii ground in UtgirUitlon ubJertK of t'.l4 nuitirf.- Iu oilier Kta iH tho aystem i)rge! hi IMh mport baK hern H adopted nnd 'lie reau'ta jre proving en tirelj' yatlsfjcto" Tligro 's sq gppd lH "rnn"l - - if."Crf tB