returns of amounts under this head show that this class of pro ri
£$ Yperty escapes its just share of taxation, and it is recommended ,'-,
that the revenue law provide for a special blank for returns
jfel'froni banks and moneyed 'corporations for the use of assessors
and county boards of equalization, in order to arrive at' a just
valuation of these properties.
A banking law should be enacted requiring all institutions
^loaning money or doing a banking business to incorporate, thus
subjecting them to the supervision of the Public Examiner,
vtfitih power to cancel their charters for usury and other viola
lotions of the law.
The Executive again renews a former recommendation that:
a reduction of the legal rate of interest will result in benefit
both to the legitimate banking business and to the general bus
iness interests of the State.
COMMISSION OF ADJUSTMENT BETWEEN NORTH AND
The commission of three members appointed by the Exec
utive from South Dakota, under act of legislature approved
January 15, 1890, to act with a similar committee from North
Dakota, in the final adjustment of the outstanding territorial
indebtedness and claims between the two States, has completed
its labors as shown by three reports of the Joint Commission
duly approved and on file in the office of the State Executive,
bearing date June 4, June 13, and December 10. 1890. respect
ively, and showing itemized claims allowed against the State of
South Dakota as follows, viz:
General claims against the Territory, one-half of which is due
from South Dakota, amounting to S 1G,446.01
Claims allowed against the State of South Dakota, exclusively,
on account of individuals 38,781.14
Claims allowed against the State, exclusively, on account of
public institutions, viz:
Agricultural College S 4,963.35
Spearfish Normal 1,717.78
Madison Normal 12,842.91
School of Mines, 2,859.88
Insane Hospital 14,065.60
Deaf Mute School
State University 6.105.70
Reform School 7.380.84 oO,909.43
Amount due North Dakota from South Dakota as per settle-^
ment of Joint Commission of Constitutional Conventions S 40.500.00
One-half of outstanding Territorial warrants and accrued in
Additional am't. of int. on Warrants assumed by South Dakota 4.806.13
Acting under authority of an act approved March 1. 1890.
SsO.OOO.OO of 4 per cent bonds were issued, dated March 1.1890.
and payable March 1, 1910, and this amount has been applied
in settlement of these claims. In addition to this $1(50.000.00
registered 3£ per cent bonds have been prepared and placed at
par, dated July 1, 1890, and payable July 1. 1910, with rebate
.of interest until January 1, 1891, the date of sale, the proceeds
of which will reduce the balance on settlement claims to about
*28,000.00, for which amount, subject to adjustment by certain
items in final settlement between the two States, additional
bonds will be issued, under the act referred to, at an early date.
The Commission has performed its difficult labor with abil
ity and fidelity, and the embarassing and intricate adjustment
between the States has finally been completed.
AUDITOR OF STATE.
iSiivi The forthcoming report of the Auditor of State for the year
ending November 30, 1890, will show in detail:
1. All warrants issued by him.
The amount of all warrants paid by the State Treasurer
^fand returned to him.
3. A statement of the accounts of the several funds
appropriations, and the unexpended balances of same.
4. Such remaks on the finances of the State as he may
This report, when filed, will be transmitted to you for your
SCHOOL AND PUBLIC LANDS.
The report of the Hon. Commissioner of School and Pub
lic Lands is presented for your information and contains a con
cise statement of the conduct of this department for the past
year, and many valuable suggestions.- The question involved
in the appeal to the Honorable Secretary of the Interior as to
whether the State shall be confined to the land district in which
the lands lost through prior settlement or other cause were
situated in the selection of indemnity lands is an important
one, and has been stated with care and ability, and will doubtless
result in favor of the State.
Sv» The receipts from leased lands during the year were
$25,698.71, of which *1,181.80 were expended for advertising,
and the balance disbursed to Ihe counties as required by the
law. Owing to the discouraging agricultural condition in the
spring the leases were diminished to one year, all expiring March
y\ 1, 1891. Much better rates can be obtained upon granting
longer terms. -V
The selection of indemnity lands will require the expendi
ture of HI, 000 during the year, the land office fees alone
amounting to *800.
In the retirement of the present Commissioner the State
loses a faithful servant whose difficult work in organizing this
department involving the most sacred interests of the State
cannot be over estimated.
COMMISSIONER OF IRRIGATION.
^Tierlport of this officer is presented for your considera-
-iv.iv- and so fully discusses the interests involved that the Ex
ecutive feels relieved from the duty. Yourselves and your
1constituents have given much attention to this subject during
#vthe'past year and this legislature will fail in its. duty if it does
rllf npt enact a law to foster and encourage and make possible ir
ligation in districts where it is needed. The past year has
^demonstrated by rrfany practical experiments the availability
of the artesian basin underlying one third of the State for both i.
^manufacturing power and inundation purposes.
Several hundred wells are now in active operation and the
Ifsupply is not in the least affected and seems to be practically
^exhaustible. No such conditions exist anywhere in the $
Ifcnbwn world for the production of wealth. A soil unsurpassed
fertility and unequaled in depth, over an inexhaustible water
|$sin being as near the surface as is compatible with safety,
$Wiere it discharges under pressure of 100 pounds to the square
iiicft producing at once, moisture unlimited and under perfect
iqftntrol for the soil, and unmeasured and unequaled power fqr
l^nufacturing, in the most healthful and favored climate in jg
world, affords possibilities for development in the im-
Mediate future which only needs to be understood by the busi
i^ss world to be realized and the fabled Utopia to become at
lifa fixed human habitation.
j|p||| Tooi great care cannot' be
exercised in granting fran-
«iuses to corporations which will deprive the settlers in this
relation to it
justllg guarded against.
^Che report of this officer is before me and is here
ilitgubmitted to you for your information. This report con-
tions of the State, as well as recommendations relating to
and county finances and banking.
Your especial attention is called to the recommendations
therein concerning the necessity of amending the law so as to
require a proper system of book-keeping and accounting be
tween the State auditor and treasurer in order that they may
be a mutual check upon each other as is intended by the crea
tion of the two offices, and to the passage of a banking law
whereby all banks may be brought under proper, supervision,
and other valuable suggestions, all of which meet my approval.
I also heartily endorse his recommendations regarding the
establishing by law pf a fiscal year ending June 30, and requir
ing all reports to the Executive and legislature to be made to
include all expenditures up to that date in order that the entire
appropriations made for a year for all purposes may be fully
settled and accounted for in one report after the close of the
fiscal year and prior to the meeting of the legislature, and
thereby relieve the Executive from the embarassment it now
labors under in furnishing the legislature with the information
to which it is entitled.
Separate reports of examinations of State and county
offices, banks and institutions, are also on file in this office and
subject to the inspection of proper committees. From these
reports it is apparent that during the past year this office has
done effective work and that the State and counties have been
amply repaid for the expenses of the same.
No state officer has more faithfully, effectively and labor
iously discharged his intricate and difficult duties than the
Public Examiner and much as the reduction of expenses is de
sired. his services cannot be dispensed with except at a cost to
the counties and State of many tiroes his salary and expenses.
The report of the commissioner of immigration herewith
submitted shows in detail the expenditure of the meagre appropri
ation for this office. Creditable exhibits of the state's resources
were made under the supervision of this department at the
Sioux City corn palace, and since throughout the principal
cyties and towns of the eastern states and Canada.
The following shows the estimates of this office of the
principal agricultural ijroducts for the year 1890:
Wheat. 17,006,600 bushels.
Corn. 17.492.242 bushels.
Oats. 17.202..r90 bushels.
Rye, 291.880 bushels.
Barley. 2,314.970 bushels.
•Buckwheat. 19.764 bushels.
Flax. 2.757.275 bushels.
Potatoes. 1.479.535 bushels.
The general average yield per acre as shown in bushels is
contains valuable information relative to the beet sugar
industry. An analysis of six varieties of sugar beets grown on
the college farm by the chemist of the agriculture college,
showing an average yield of fifteen per cent. When we re
member that in Germany the great centre of the beet sugar indus
try the yield is but twelve per cent, and couple this with the
fact that all roots, and especially the beet, grow most luxuri
antly in South Dakota it shows that this industry here presents
most inviting opportunities for the investment of capital. The
United States consumes more sugar than flour and produces
but one'tenth of the amount consumed. These facts taken in
connection with the government bounty paid the producer
makes a condition that capital will hasten to take advan
It is regretted that the financial straits of the state have
not permitted of greater liberality towards this office, and it is
a doubtful question of economy whether the state should not
use extraordinary exertions in setting forth the inducements
her wonderful resources offer to rich and poor alike in times
when capital is seeking safe investment and labor a just re
The same remarks apply to the wool industry, both to its
productiou and manufacture.
There is no climate better suited both to the growth and
health of the animal and the quality of the fiber. While the
grades constantly deteriorate in a southern climate and must
continually be supported by importation of animals, here the
grade of wool from a given herd will constantly improve, thus be
ing the natural home of the fibrous coated animal and where its
finest and most abundant coat is needed and produced. Foot
diseases, so great an obstacle in the sheep industry are here
almost unknown on account of the dry and thoroughly drained
soil, while entire absence of rain in the winter and freezing
months secures immunity from colds, the other great destroyer
of the animal, and artesian power offers special inducement to
the manufacture of the fiber. These facts, coupled again with
the increased protection of woolen products point out a certain
and abundant prosperity through this channel to our farmers
and to the State.
These rare opportunities here afforded can scarcely be ex
aggerated for the employment of capital in an intelligent man
ner. and the state should use all available means to place them
before the world. It is suggested that possibly the desired re
sults could be obtained and the ends of economy subserved by
attaching the duties of this office to the Commissioner of Labor
This state is also specially prolific of the flax plant, the
growth and manufacture of which offers untold possibilities,
increased largely through the protection offered the industry
tinder recent legislation by congress,
THE WORLD'S FAIR.
In connection with this subject should be considered the
World's Columbian Exposition to be held in Chicago in 1892 and
1893. This interests not only the States of the Union but the
nations of the world.
The northwest will occupy no mean place in this grand ex
hibit and South Dakota cannot afford to lose so grand an op
portunity for the display of her mineral and agricultural re
sources to the people of the earth. And such legislation and
appropriations are urged as will represent the State's mineral
and agricultural. resources and for the erection of a suitable
building for the headquarters of her citizens and the manage
ment of the exhibit.
It will unquestionably be the most magnificent industrial
exhibit that ever was witnessed upon eax*th, and its like will
not occur again for a century. Coming as it does to our very
door, bringing hither the brightest representatives from all the
r" nations of the earth, our new state with her matchless re-.
sources cannot afford to deny herself its benefits. -y
HP1SINSPECTOR OF MINES.
This officer was appointed pursuant to an act of the' first'
legislature and entered upon the discharge of his official duties
on the 17th of June, 1890, and his report herewith submitted
shows a conscientious discharge of duty and presents an intel-"
ligent exhibit of the. rich and wonderful mining resources
of the State, together with much valuable and instruc-:
their development and the protection..
of the health and lives of the laborers through whose brawn
and intelligence this great interest is being developed.
The report shows nine deaths to miners thus far from ac
cident during his official term with a faithful record of the cir
cumstances and causes of the same, and intelligent effort for
the avoidance of similar catastrophes in the future.
This wonderful Black Hills mining district embraces nearly
100,000 square miles or 64,000,000 acres of lands, practically a
solid mining camp, yielding every mineral known to science and
most of the precious metals in paying quantities, notably gold,
silver and tin. In the Homestake mines which are thu most
highly developed more than a thousand men have be4n employed
for years in an area of a few acres with scarcely any visible di
minution of the supply.
The tin industry is yet in its !r. fancy but its magnitude is
evidenced by the fact that a quarter million dollars have al
ready been expended by one company in developing mines for
the working of which they are now erecting the largest, plant
in the world.
More than 30.000 mining claims have been located and 500
opened sufficiently to prove them capable of profitable opera
For several years experts have been investigating the clay
and chalk stone deposits on the Missouri river from Yankton
to Pierre and after thorough tests a plant has been put in at
Yankton at a cost of $250,000 for the manufacture of cement.
Ail indications are that this is the begining of an industry that
will straightway profitably employ millions of dollars and
thousands of men within the State. The product is superior to
the Portland cement, the best known to commerce, and a recent
test witnessed by the Executive shows a tensile strength of 1126
pounds per square inch by a sample one year old and its virtue
increases with age. A similar plant is to be erected at Mitchell
in the spring, upon a large tract of land where the clay and lime
deposit of the finest quality are found located together. A
manufactory is also in contemplation at Chamberlain and
thousands of acres of lands along the Missouri have been se
cured for similar purposes.
The report of this officer has not been furnished, but his
duties have been faithfully and efficiently discharged to the ex
tent that contagious diseases among animals have been largely
obliterated and the labors of the office correspondingly reduced
so that a similar reduction of the emoluments of the office can
be properly made.1
The report of this officer is presented for your information
and shows a most industrious and faithful discharge of his offi
cial duties. His numerous opinions touching many obscure
statutes involving the expenditure of public money will greatly
assist your labors in the comprehension and prevention of pub
THE BOARD OF AGRICULTURE.
The Board cf Agriculture has furnished no report to the
Executive who is. therefore, unable to advise you concerning
the public money entrusted to its care. It is however doubtless
THE BOARD OF HEALTH.
The report of the State Board of Health is herewith sub
mitted. which shows the absence of epidemics and a happy con
dition of health throughout the State during the past year, which
can scarcely be excelled in any known country. It contains
reports from many county boards and is a complete epitome of
the subject embraced. The people of South Dakota fail to
comprehend the blessing vouchsafed them in the health
restoring and health invigorating qualities of the climate of
Under act creating this office it was filled by appointment
June 11. 1890. and its duties arc being discharged in a satis
factory manner without charge to the State, the expense being
made by a small fee paid by the importer.
REPORT OF STATE EXECUTIVE COMMITTEE ON DONATIONS
RECEIVED AND DISBURSEMENTS MADE.
The committee's itemized account showing the entire re
ceipts and disbursements, is herewith presented. It is grati
fying to report that the entire amount expended was for the
purchase of supplies, the expense of collecting and distributing
being borne by the committee, and that 10 per cent of the en
tire sum collected was returned to the donors.
The South Dakota National Guards, notwithstanding the ab
sence of funds for its proper support, still maintains its efficient
organization in a manner highly creditable to the patriotism and
devotion of officers and men. The second regiment, under the
energetic and enthusiastic administration of its colonel, the
Hon. M. W. Sheafe, comprises twelve companies, numbering
480 men. with a full convenient of efficient officers, the whole
well equipped with guns, ammunition, and camp equipage. Dur
ing the present threatened Indian troubles the companies have
spent much time in drilling and are fully inspired with the zeal
of their profession, and in case of opportunity will shed luster
upon themselves and the State.
The department has a complete equipment for a battery of
guns, and several applications for an organization, but it is
withheld for lack of funds.
For a detailed synopsis of this department reference is had
to the reports of the Adjutant-Generals for the years 1889 and
Under the militia law, as it now stands, the appropriation
is insufficient to meet the payments allotted by law to the com
panies, and must, if continued result in a misunderstanding
and dissatisfaction which will be detrimental to the organiza
tion. It is one of the multitude of laws standing upon our
statutes granting moneys without an appropriation to pay and
without funds if there was an appropriation. A definite sum
should "be appropriated for this department and paid in full un
der the law, which should be modified so as to bring expenses
within the appropriation. ...
The Indian problem invites your attention. Since the
opening of the vast tract of ceded lands west of the Missouri
river in February last there has been a growing discontent
among the Indians resulting from vexation at liaviug to leave
their lands. This discontent has been steadily mirtured by
.vicious leaders through the agency of the ''ghost dance,"
adroitly substituted in the guise of a religious frenzy for the
war dance which is ordinarily used to incite savages to war
fare and which had been forbidden among the Indians by th«
government. Growing insubordination during the year culmi
nated in the collection and organization of bodies of defiant
', ,Indians on the outskirts of the agencies west of the river who
were speedily brought to the frenzy which always precedes an
[^uprising. From more than ordinary insolence :and theft
everywhere, in many places, notably on the upper Cheyenne,
White and Bad rivers, they became open and defiant in their
depredations, pillaging and robbing the settlers and conveying
their plunder to a general rendezvous in the Bad Lands be
tween the forks of the upper .White river. The prompt action
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