Democratic Sentinel, Volume 10, Number 50, Rensselaer, Jasper County, 14 January 1887 — Page 6

INDIANA AFFAIRS.

Biennial Message of Governor Isaac P. Gray. The Financial and Industrial Condition of the State. Gentleman of theGenoral Assembly:In obedience to the provisions of tbe Constitu- ! tion of the State, you have assembled to enact j euch laws as in your wisdom tqe wants of the j State demand, and it affords me much pleasure j to welcome the chosen representatives of the j people in this new Capitol, in which you have ; been permitted to meet, prior to its completion, j through the kindness of the contractors. The rooms designed for the use of the Gen- ! eral Assembly and their respective officers and committees, and also bucU rooms as could bo prepared for the use o< the State officers, were tendered to the State free of charge, upon the condition that the State shall indemnify the contractors against any damages, to any part of the building, which shall be occasioned by such occupancy. Their offer was accepted, and you have the honor to be the first General Assembly convened in this magnificent Capitol, and in thus dedicating it to legislative purposes, I trust you will, in the results of your sesion. leave an enviable and honorable record, to which, at all times, you will have just cause to refer with becoming jiride. Public Debt. The indebtedness of the State may be given in a tabular form as follows : FOREIGN DEBT. Five per cent. State stock certificates, issued under the adjustment acts of 1616 and 1847 ; duo and interest stopped Sept. 1, 1870 £14,169.99 Two and one-half per cent. State stock certificates 2,355.18 Three and one-half per cent, registered funding bonds, temporary loan, dated April 1, 1885, payable April 1, 1805, issued under the provisions of an act approved Feb. 21, 1885, and held as follows : German Savings Bank iu the city 9f New York 400,000.00 Dry Dock Savings Institution of the city of New York 100,000.00 Citizens’ Savings Bank of New York City 85,000.00 Three and one-hulf percent. Registered Bonds, Temporary Ixiun, issued under provisions of mi act approved Fob. 21, 1885, dated March 1, 1885, and payable at the pleasure of the State after March 1, 1890, due March 1, 1695, held as follows : Dime Savings Bank of Brooklyn, New York 500,000.00 German Savings Bank in the City of New York - 100,000.00 Three and one-half i>er cent, registered New State House Bonds, temporary loan, dated May 1, 1885, payable May 1, 1895, issued under the provisions of an act approved March 31,1835, held as follows : Bowery Savings Bank of tho City of New York 8100,000.00 Citizens’ Savings Bank of tho City of New York 100,000.00 Total foreign debt .81,701,825.12 DOMESTIC DEBT. School Fund Bond No. 1, issued January 1, 1867, bearing 6 per cent, interest 8709.024.85 School Fund Bond No. 2, issued January 20, 1807, bearing 6 per cent, inuterest 2,658,057.30 School Fund Bond No. 3, issued May 1, 1868, bearing 6 per cent, interest.. 184,234.00 School Fund Bond No. 4, issued January 20, 1871, bearftig 6 per cent, interest 177,700.00 School Fund Bond No. 5, issued May 3, 1873, bearing 0 per cent, interest.. 175,767.07 Fivo jier cent. Bond held by Hurdue University at Lafayette, Ind., due April 1, 1901 340,000.00 State University (Bloomington) Bond, iu custody Treasury of State, dated October 1, 1885, bearing 5 per cent, interest 60,000.00 Total domestic debt 84,304,783.22 Total State debt ,86,006,608.34 AMOUNT OF INTEREST ON FOREIGN DEBT. All of which is paid semi-annually, as follows : Funding bonds, temporary loan (principal 8585.000, interest 3J£ per cont.), payable April 1 and Oct. 1 820,475.00 Temporary loan bonds (principal 8600,000, intorost 3W per cent.) payable Sept. 1 and March 1 21,000.00 New State House bonds, temporary loan (principal 8500,000, interest 36j percent.) payable May 1 and November 1 17,500.00 AMOUNT OF INTEREST ON DOMESTIC DEBT. Interest payable semi-annually, April 30 and October 31. Six school fund bonds, numberod from one to five, inclusive, aggregating 83,904,783.22, at 6 per cent $234,286.C9 Furdue university bonds, 8340,000, at 5 per cent 17,000.00 Indiana university -bond (Bloomington], 860,000, at 5 per cent 3,000.00 Total amount interest 8313,201.99

State Finances. The reports of the Auditor of State for the fiscal years ending Oct. 31, 1885, and Oct. 31, 1886, will give you in detail the financial transactions of the State Government for thoso two years. For the past ten years the tax lovy for State purposes has been fixed by law at 12 cents on the SIOO, and at the time such levy was fixed it was only deemed to be sufficient to meet the usual and ordinary expenses of the . State and its institutions. In that period the State has largely developed in her material, financial and commercial resources, and the cost of the maintenance of her institutions has also increased on account of the increased number of inmates. New offices have been created, and new duties have been added to the old offices, which have likewise largely aided in increasing the current and ordinary expenses of the State. In addition to such expenses, there have been, from time to time, as each General Assembly convened, appropriated from the general fund, from which all the expenses of the State Government and her institutions are paid, large sums for unusual or extraordinary expenses. The State has in part been enabled to pay the large amount of extraordinary appropriations by anticipating the revenue of each ensuing year in the way of advances by several County Treasurers, as provided by law. The amount of advances has increased from year to year, os the pressure upon the Treasury lor funds has grown, until such advances for the fiscal year ending October 31,1836, amounted to the sum of 3440,804.65. The State Government has, during said years, been carefully and economically administered, without the loss of a single dollar to its revenues by defalcation or official neglect of duty. In the construction of the new State House 3200,000 has been appropriated and paid from the general fund. The construction of the Female Department of the Indiana Hospital for Insane, at Indianapolis, begun in May, 1875, and completed June 2, 1884, was wholly paid for by appropriations out of the General Fund at a cost of 8722,000, of which sum $522,009 has been paid since April 1, 1877. Also the construction of the three additional Hospitals for Insane has been entirely provided for out of the General F und, The amount now authorized by appiopriutions to be drawn from the General Fund on account of these institutions is 81,161,800,, of which amount there had been paid at the close of the last fiscal year the ■urn of $747,255.73, The appropriations from the general fund for extraordinary expenses from the Ist day of November, 1883, until the Ist day of November, 1886, as taken from the report of the Auditor of State, amount to $1,208,852.02, and show the continual sapping of the revenues, which were only intended to pay the current expenses of administering the State government. The amount expended for like purposes from January 1, W 77, to November 1, 1883, was perhaps as large. In the foregoing amount there has been no attempt to include many small specific appropriations or the increase in current expenses of our groat and growing State, occasioned by the le-

gftimate expansion of our public institutions, the creation of new offices, and the enlargement of the duties of older offices. In 1885. the General Assembly, by an act approved Februaiy 21, 1885, authorized the Governor, Auditor and 'Treasurer to make a temporary loan of 8609?WO.OO, redeemable at the pleasure of tbe State after five years and payable in ten years, at a rate of intenst net exceeding four per cent, per annum. It was also provided in the aame act, that whenever it was ascertained that the temporary loan indebtedness of the State, or any part, could be funded at a lower rate of interest, and that such officers could negotiate and secure the funding of such temporary loan at such lower rate, they were authorized to fund such indebtedness at such lower rate for a period not less than five years, nor more than ten years. There was outstanding at the iiine a temporary loan of indebtedness of 8 85,000, issued April 1. 1879, payable April, 1, 1883. and redeemable at tbe pleasure of the State after April 1, 181!, bearing Interest at the rate of 5 per cent, per annum. It was ascertained that such indebtedness could be funded at' a lower rate of interest. Bids were invited through public advertisement upon each of said loans, and tbe loans were awarded to Mr. Walter Stanton, of New York City, as the lowest and best bidder. The bonds of the State, dated April 1, 1885, were issued, denominated “registered bend, temporary loan” for 8600,000. bearing 3% per cent, interest, payable semi-annually, upon which loan the State received a premium of \% per cent., amounting to 88,2.50, and the sum of 8608,250 was paid into the State treasury to the credit of the general fund. Similar bonds denominated “registered funding bond, temporary loan,” for $585,000, were issued payable in ten years from April 1, 1885, bearing interest at 3b, per cent, per annum, and with the proceeds of said bonds tho State redeemed and canceled said outstanding temporary loan bonds of 8585,000 issued April. bearing 5 per cent, interest. A premium on the new bonds of 1% per cent., amounting to 810,965.75, was received and paid into the State treasury to the credit of the general fund. The premium received upon the 8600,000 was much smaller than received upon the 8585.000 funding loan, because the law required the former to be redeemable at the pleasure of the Stats after five years while the latter was payable in ten years, capitalists regarding it a very desirable investment. Tho General Assembly, by an act approved March 31, 1885, authorized the Governor, Auditor, and Treasurer to mako a temporary loan of #500,003 by issuing and selling tho bonds of the State, redeemable iu not less than five nor more than ten years, bearing interest at a rate not exceeding four per cent, per annum, payable semi-annually, to meet tho appropriations for the new State HouseAccording to public notice of the sale of said bonds, said loan was awarded to the lowest and best bidder, and in pursuance of such bids the bonds of the State were issued, denominated “Kegistered New State House Bond, Temporary Loan,” dated May 1, 1885, payable in ten years, bearing threo and one-half per cent, interest per annum, payable semi-annually, upon which loan the State received a premium of one and one-half per cont, amounting to 87,500, and the sum of 8507,500 was deposited in the State Treasury to the credit of the New State House Fund, as the law directed. The credit of the State has so improved th at said loans were negotiated at a rate of interest, with the premiums received, that will make said loans average about 3 1 4 per cent., and the refunding of said temporary loan of April 1, 1879, will make an annual saving of 88,775 in interest. Undor provisions of “An act to provide a fund for the permanent endowment of the Indiana University and for the investment of the same,” unproved "March 3, 1883, a sum exceeding 860,000 of said permanent endowment fund had been paid into tho State Treasury, and, the State needing a loan to meet a casual deficit in tho revenue and to nay the interest on the public debt, the sum of 860,000 was, in pursuance of section 6 of ssid act, transferred from said fund to the credit of the genoral fund. As provided in said act, a non-negotiablo bond of the State for said amount was made and issued by the Governor and treasurer, attested by the Secretary of State with the State seal, to the trustees of said university, dated October 1, 1885, payable in fifty years at the option of the State, bearing five per cent, interest, to be jiaid semi-annually, on the first days of May and November, in each year, until said bond is paid. Tho total amount borrowed for the benefit of the general fund was 8660,0U0, and, deducting such amount from the amount of the said extraordinary expenses, 81,208,852.02, will show that during said years 1883, 1884, 1885, and 1886, the sum of 8548,852.02 has been paid from the revenues of the State, over and above the ordinary expenses. It will be apparent to you that the State can not engago in the construction of expensive and elaborate improvements without increasing the tax levy for Stato purposes, or borrowing the necessary moneys to meet tbe additional cost of such improvements. Considering the excellent credit of the State, I have no hesitation in recommending the borrowing of the necessary funds in preference to increasing the rate of taxation.

The net receipts to tho general fund from all sources, exclusive of 5257,‘.136.75 advanced by counties and $679,215.75 received on loans, for the fiscal year ending October 31, 1885, were $1,424,249.10, while tho expenditures from tho same fund, exclusive of advances returned to counties during such year, pursuant to appropriations, were $2,083,085.61. The net receipts to the same fund, exclusive of advances by counties, for the fiscal year ending Oct 31, 1886, were $1,421,3 0.81, while the expenditures from the same fund, exclusive of advances returned by counties, during such year, pursuant to appropriations, were $1,619,537,78, The expenditures of the last year are not equal to those of the former year, because the revenues of the State have not been sufficient to meet the appropriations. The State is paying annually about one-fifth of its entire revenue as interest on its domestic debt, which consists of non-negotiubie school bonds of $3,904,783.22. issued in 1867 and 1868, bearing 6 per cent, interest; a non-negotiablo Purdue University bond of 8340,000, issued in 1881, bearing 5 per cent, interest, and a non-ne-gotiable State University bond of $60,000, bearing 5 per cent, interest; and I earnestly recommend a reduction in the interest on the $3,904,783.22 school bonds to 3 or 3V> per cent., as I believe the revenues to the School Fund would still continue to be sufficient. If, however, it should be deemed preferable, inasmuch as the State can borrow money at a much lower rate of interest, a loan could be authorized to pay oil tho entire non-negotiable school bonds, and after the payment thereof provido that the money shall be distributed to the counties in the manner heretofore provided by law, and that all school funds be loaned in the manner now directed at the rate of interest not exceeding 6 per cent, per annum. Either method, I believe, would meet with popular approval. If a funding loan for such purpose were negotiated at a rate of interest not exceeding 3 per cent., which I believe to be possible, it would result in an annual saving of interest of $117,143.50, besides providing a large amount to be loaned to the people of the State at a fair rate of interest. It is evident that the revenues are barely sufficient to meet the current expenses of the State Government, and with a decreased appraisement of nearly $54,000,000 of the property in the State subject to taxation, shows conclusively that the money necessary to complete and equip the new public buildings must be raised either by increased taxation or the negotiation of a temporary loan. In order to provido for the wants of the State and the completion and equipment of the public bqildings now in process of construction, a sufficient loan should be authorized, running twenty years, redeemable at the pleasure of the State after fifteen years, at a rate of interest not exceeding throe;and a half per cent, per annum. As a means of creating a sinking fund for the final extinguishment of the State debt, I would recommend that, the present tax of two cents, levied for State House purposes, be continued permanently, and the proceeds used in pay in y off or purchasing the State's bonds for cancel’ lation and destruction, thus liquidating the State’s indebtedness caused by the construcltion of the new public buildings, without increasing tho present rate of taxation. With the signs of increased prosperity I trust, that wo may reasonably anticipate some in-’ crease in.tho value of the personal property of the State, and that the current receipts will be ample to discharge all current expenses, after providing for the present contingencies. \- > .

Public Buildings.

NEW STATE HOUSE. The construction of the new State House, ip accordance with the provisions of an act of the General Assembly, approved March 14, 1877, is

fast approaching completion, and will, doubtless, be ready for acceptance and ftecupancy during the present year. The Board of State House Commissioners, in their report, will submit to you a full statement of their financial transactions and detailed estimates of tbe expenditures to complete the House and to provide tbe same with furniture, for both of which purposes additional appropriations will be necessary. Y'our attention is also called to needed legislation to provide for the care and custody of the new State House alter its completion and acceptance by the State. ADDITIONAL HOSPITALS FOR THE INSANE. The law authorizing the construction of three additional Hospitals for Insane was passed in lsß l. Tho law required that two commissioners should l»e appointed from each of the two leading political parties to superintend tbeirconstruction. My predecessor appointed as such commissioners Gen. Wm. Grose, Hon. DeForest Skinner, Col. Joseph K. Gray and Hon. John C. llpbinson. location of tbe several hospitals was fixed, one each at Evansville, Richmond and Lo.'ansport; the plans and specifications adopted, and the contracts for their construction let, and the buildings commenced before the commencement of my official term. The board as constituted by my predecessor was continued by myself, and so remained until October 2-5, 1885, when Gen. William Grose resigned, and has since been elected a member of the present General Assembly. The Hon. Eugene H. Bundy yras appointed to fill the vacancy. ' Inquiry made last September through the State Board of He ilth, s'n >wed tho nninber of insane persons confined in the jails and poorhouses of the State to be about 1,100, and it is reported that some are locked in cells, some wear ball and chain, and others are chained to the floor. I need not urge the necessity of an early completion of the hospitals in order that these poor unfortnnates may have proper care and medical treatment. The total amount appropriated for the construction of the three Hospitals is $1,163,890, and the Board asks an additional appropriation of 8107,000 to complete and equip the institutions. Of the allowances made to the contractors thero has been paid 8747,255.73, leaving a balance of tbo appropriations for said Hospitals unexpended of $419,556.05, which amount was unexpended because the receipts to the General Fund were not sufficient to pay allowances against the same and meet tho largo expenditures for tho maintenance of the State government and the public institutions. The Medical Engineer estimates the annual cost of maintenance for each of the three hospitals for the fiscal year ending October 31, 1887, at 830,000; for the fiscal year ending October 31, 1888, to about 870,003, and for the fiscal year ending October 31, 1889, 870,000. The board presents with their report such bills as they deem necessary for the organization and government of eacn institution when completed, the basis of which is a board of four trustees for each hospital, the two leading political parties to be equally represented on each board. The commissioners also recommend tho purchase of ten acres additional to the present grounds of the Northern Hospital, for the purpose of adding to its symmetry and procuring better access to the grounds. The board having purchased to the limit authorized by law, must have somo additional authority to purchase the land. 1 commend the matter to your investigation ana consideration.

State Institutions. STATE UNIVERSITY. Indiana University is taking rank with the very best educational institutions in the West; the number of students is steadily Increasing each year, and the work done in the University is equal to that done in many of the more pretentious universities. The library has been largely increased by well-selected volumes. The museum is very extensive. The laboratories now afford unsurpassed facilities for practical work. The faculty is composed of men of high character and finished education. I commend the University to your favorable consideration, TIIE STATE NORMAL SCHOOL. The success of the school has demonstrated its usefulness as a factor in developing professional teachers, and in promoting the cause of education. During the seventeen years of Its existence the average attendance has increased from 47 to 433 students. During the last two years 84 per cent, of the students havo come from the homes of farmers and mechanics, and eighty-seven counties of the State have been represented. PUBLIC SCHOOLS. The excellent report of the Superintendent of Public Instruction contains the evidence of the increased prosperity and efficiency of our common school system. The common school fund has been increasing at the rate of about $60,000 per year for several years past, and now amounts to $9,458,085.71. INSTITUTION FOR THE DEAF AND DUMB. Tho report of this institution for the year 1886 shows the value of the real estate Is $459,009; personal property, $44,890; total, $503,890,97; value of products of farm and garden, $3,618.65; oarningn of tho Institution, $62.81; value of clothing furnished pupils and returned to State treasury for collection, $963.93; appropriation for maintenance, $55,000; expended from maintenance fund, $52,069.98; appropriated for repairs, $3,000; expended from repair fund, sl,313.45; special fund, $726.27; expended from special fund, $195.35 ; number of pupils in attendance, 316; per.capita cost, $161.52. The Superintendent’s report shows that the health of the pupils during the year has been good, and that a marked improvement has been made in educational methods. INSTITUTION FOR THE EDUCATION OF THE BLIND. The Trustees in their report estinjate the value of the real estate at $3 >6,238; the personal property at $17,760.66; totai valuation, $373,998.66. They report expended for current support, $23,892; for repairs, $1,993.67; total expenditure, $2 ',838.67. The institution furnishes the pupils tuition, board and washing only. Tho Superintendent’s report shows that the school session commences on the second Wednesday in September, annually, and continues forty consecutive weeks, at the expiration of which all the pupils are required to be removed from the institution. The whole number of pupils enrolled during the session of 1885 was 126. The total number enrolled during the session of 1886 was 130, 60 males and 7J females. The average monthly attendance was 93. The cost per capita for maintenance was $197.45 for forty weeks. INDIANA INSANE HOSPITAL. The Trutees, in their report ending October 31.1886, estimate the value of the real estate at $1,430,150.00 ; value of personal proDerty, $221,050.05. Total, $1,651,210.95. There was appropriated for the fiscal vear ending October 31. 1885, for maintenance, clothing and repairs, $289,000. There was appropriated for the fiscal year 1886, for maintenance, clothing, repairs and improvements, $354,500. That portion of which was designated for specific repairs was authorized to be expended between the first days of April, 1835, and 1886, making the total for the two fiscal years, $634,500.00. There was expended in the fiscal year ending October 31, 1885, $319,087.90, and in the fiscal year ending October 31, 1886. $298,958.60, showing that tho entire appropriations of the two years of $634,500 were all expended except*the sum of $16,453.50. The average number of patients during the year 1885 wus 1,422 ; the average number of patients for the year 188 > was 1,512. The pet capita expense in 1885, based upon the expenditure for maintenance, was $173.43; the per capita expense for the year 1886, based on the expenditure for maintenance, was $160.03. Taking the total disbursements for each year, less the expenditure for clothing, the per capita expense for 1885 would be $216.08, and for 1886 would be $lB '.19. The Superintendent’s report shows the number of officers and employes to be upward of 30J, or one salaried person for every four and onehalf patients, and the amount of compensation paid to them to be about $7,000 per month. The annual expense of maintaining the Institution consumes about one-fourth of the entire revenue of the State. I earnestly recommend that the law governing the Institution be so amended that patients who have estates sufficient to support ‘hem should be compelled to pay for their maintenance. SOLDIERS’ ORPHANS’ HOME AND INSTITUTION FOR FEEBLE-MINDED CHILDREN. The last General Assembly amended the law for the government of the Soldiers’Orphans’ Home and the Institution for Feeble-Minded Children, which provided that the Governor should appoint three Trustees, one of Jwhom, at least, should be a woman, and the male members of the Board should be honorably discharged Union soldiers, and at least one member should be an adherent of one of each of the two political parties casting the largest number of votes at the last general election. In pursuance of said amendment, I appointed as a board for the management of said Institution the Hon. Ben L. Smith, of Kush County;

Captain James H. Harris, of Hamilton Connty, both honorably discharged Union soldiers, and Mrs. Sarah E. Pittman, of Monroe Coantr. whose husband is also an honorably discharged Union soldier. They still constitute said Board. The Trustees had succeeded, by judicious management of the Institution, in paying off a large portion of its indebtedness, and were congratulating themselves upon being able to make repairs and beautify the grounds during the coming year Without increasing tbe expense of tbeir management, when, on the 21st day of July, 1886, a disastrous fire destroyed the main building of the Institution, but providentially no lives were lost. The building was insured for 825,000, 820,00 Jof which has been paid, and t5,000 is now in litigation. The grounds consist of fifty-seven acres, which are valued by the Trustees at 84,500; the walls and foundation of the building at $17,000; boiler-house, boiler and engine, 84,500; laundry, bakery, school-house, nurserv, barn and other buildings, $2,500 total valuation, $28,500. The Trustees have been moved to prompt action to rebuild, in order that a homeliiay again be provided at as early a date as possible for tbe inmates, and I commend their action to your favorable consideration. I recommend that the Feeble minded Institution be separated from that of the Soldiers’ Orphans’ Home, and suggest that the feeble minded inmates be removed to one of the now hospitals now in course of construction. STATE PRISON SOUTH. The report of the Directors for the State Prison South shows that the income of the prison has not been quite sufficient to meet the current expenses. The total disbursements, including officers’ salaries and $4,307.61, expended for repairs for the fiscal year ending October 31, 1886, were $82,255.45; receipts and earnings, 879,590.12, showing excess of disbursements over receipts, 82,665.33. The Warden’s report shows that the daily average number of convicts during the year was 573, and the number remaining in prison Oct. 31, 1886, was 525. The number received since the establishment of the prison, in 1822, was 8,743, and discharged up to Oct. 31, 1886, 8,218. STATE PRISON NORTH. The reports of the State Prison North for the last two fiscal years show the prison to have been self-sustaining. For the fiscal year ending Oct. 31, 1885, the receipts and earnings were $105,221.67. Total disburse, neats. including repairs, officers’ salaries and $26,657.25 expended for improvements, were $99,662.15. The excess of receipts over all expenditures was $37,559.52 The monthly average number of prisoners was 702; number of deaths, 8, and number of prisoners October 31, 1883, 703. For the fiscal year ending October 31, 1836, the receipts and earnings were $111,4:30.10. Total disbursements, including repairs, addition to library, and officers' salaries, were $96,712.37, The receipts over expenditures, $14,717.73, showing an increase of receipts over preyious year of $8,208.43, and a decrease in expenditures of 82,950.15, and an increase in net earnings over previous year of $11,158.58. The monthly average number of prisoners was 701; died during the year, 13; number in prison October 31, 1886, 697 ; received since its establishment in 1860 until October 31, 1886, 5,427, and discharged, 4,277. The sanitary the prison during the last two fiscal years has been excellent, aud the health of the prisoners has been good.

REFORMATORY FOR WOMEN AND GIRLS. The report of this institution for tho year 18S6 Bhows that there were in the Penal Department 54, and in the Reformatory Department 129. Average number for the year, 181. The expenditure for maintenance and repairs was $30,000. The net earnings of the institution for the year, including amount received for boarding one United States prisoner, were $758.81, leaving as the net cost of the institution for the year $29,241.19. Per capita cost, based on entire expenditure, $161.65. Earnings, per capita, per arjnum, $4.19. Aggregate salaries paid officers and employes, $8,258.40. The managers recommend the building of a hospital and chapel. INDIANA REFORM SCHOOL FOR BOYS. This institution, formerly named •* The House of Refuge,” was established in 1868. There have been admitted to its guardianship since its opening, January 1,1869, 2,439 boys. There were, at the close of the present year, 516 in the institution, an increase of 76 over the preceding year. There were admitted during the last year 203, and released 216. Tho Institution has been remarkably free from disease, not a single death having occurred during the last year. This fact speaks highly for the sanitary condition of the Institution, its discipline, and the care and attention given the inmates. The appropriation last year for the maintenance of the institution was $60,000. The Trustees ask an additional appropriation of $5,009, on account of needed improvements, and also recommend that legislative provision be made for the appointment of a “visitor” to visit the boys out on ticket-of-leave, for the purpose of ascertaining the character of their homes, the influences that surround them and their general conduct, that the management of the institution may have reliable information in relation to the same, and also to procure suitable homes for homeless boys, whose conduct in the institution entitles them to ticket-of-leave. PRISON REFORM. The Constitution of the State provides that “the penal code shall be founded on the principles of reformation and not of vindictive justice; that cruel and unusual punishments shall not be inflicted; that all penalties shall be proportioned to the nature of the offense," yet our penal system and penal code, and especially the manner in which the latter is administered, could hardly be further from a compliance with those wise and humane provisions of our Constitution. Nearly every day our courts are sentencing to the penitentiary young men under 21 years of ago, in many instances their first offense, and in many cases the offense a technical one, and hundreds are sent to the penitentiary by courts and juries, thereby blasting their characters forever, merely for the purpose of saving the county from the expense of a jail sentence, which would have been sufficient punishment for the crime committed, and not only increasing the number of the criminal class, but inflicting a punishment in violation of the above provisions of our Constitution, which says: “All punishment shall be proportioned to the nature of the offense.” Two-thirds of the prisoners in our State prisons are under 30 years of age. To expect to reform this class of prisoners by their forced association with hardened and confirmed criminals, murderers, thieves and counterfeiters would be to reason that evil associations do not contaminate or corrupt. Those who have had experience in ttie management of prisons, and also those who have given careful attention to the impress made upon the character of the young and comparatively innocent convict, by the aggregate prison system, testify to its hurtful influence, and the almost impossibility of effecting reformation under such a system.

Miscellaneous.

PUBLIC PRINTING, BINDING, AND STATIONERY. The report ot the Secretary of State is accompanied by an elaborate and valuable report from the Clerk of the Bureau Of Public Printing, Binding and Stationery, showing in detail the printing and binding done and the stationery furnished on account of each public office, and authorized by law to be charged to the Public Printing Fund, and also on account of each public institution, and authorized by law to be charged to the appropriation for such institution. The present bureau was established by an act of the General Assembly, approved March 13, 1875, and all the public printing, binding, and stationery for the use of the several offices, and the expense of which was chargeable to the public printing fund, was to be executed through such bureau. The act has proved of great benefit to the State, and has reduced the cost of public printing. In 1885 the General Assembly, by an act approved April 13, 1835, largely increased the duties of the bureau, and required that all the printing, binding, and stationery for the use of any office, or any public institution, should be executed through such bureau. Under the law every office and institution has been supplied at a uniform price, which has been secured through competition, after due public advertisement. In making the appropriation for publio printing, binding and stationery, I would commend to your consideration the propriety of appropriating a specific amount for each officer or department named, for the reason that the present law appropriates a fixed sum without limiting the amount that any officer may order. STATR BOARD OF HEALTH. The report of the board contains much interesting information.and gives a detailed account of their-expenditures. The amount appropriated was $5,000, all of which was expended, except the sum of 56 cents. The board states that as the people becoine more familiar with the Operations of tbe various health organizations, and the objects to be attained, the more popular the law be. omes, and the more readily the rules and regulations of the board are observed.

STATE LIBRARY. The State Library waa organized in 1841, and at the close of the last fiscal year contained 23,441 volumes. Dr-i ig the period of its existence it has been under the management of eighteen Librarians, holding an average tenure of years each. In so short a period a Librarian is barely able to become familiar w.th tbe duties of the position, and is compelled to retire when he has become competent to discharge intelligently its duties It is evident that what the Librarian says in her report is true—that these frequent changes seriously detract from the usefulness of the Library, and will continue to do so until the Legislature makes different provision for its management. The net pro it of the State Fair of 1883 was *7,924.29, and of 1886. $8,64 3.5). The Board has reduced its debt ofiCO.OiO, bearing 10 per cent, interest, to $35,009, bearing 6 per cent, interest. The Board asks an appropriation by the General Assembly sufficient to pay the interest on it* debt lor the coming two years, and authority tc have not less than B,OCO copies of its annual reports prime i. STATE GEOLOGIST. The Stat 9 Geologist has submitted to me a report of his labors an 1 discoveries for the two years ending Oct. 31, 1889. The report is quite voluminous, and I refer you to a careful perusal of its contents. INDIANA LEGION. The report of the Adjutant-General shows the military force of the State to consist of three regiments of infantry and one regiment of artillery. The first regiment of infantry consists of eleven companies, aggregating 571 men; the second regiment of twelve companies, aggregating 60) men; and the third regiment of eleven companies, aggregating 55 1 men; making the strength of infantry force 1,737 men. The first regiment of urtillery is composed of nine batteries, aggregating 17 guns and 250 men, making the military force of the State, mustered into service, 2,020 men of all arms. I recommend a reasonable appropriation for the support of the Legion, and that the nnmbei of troops bo limited by law, so that the State mav have, though it be small in n tuber 3,13 well-trained and disciplined military force. Indiana furnished 208,367 soldiers for tho Union army during the late war. Many of the muster-in and muster-out rolls ip the Adjutant General's office are worn out by constant use, and many of them have become partially unintelligible, and if it is the desire of the State to preserve her military records, provision should be made for that purpose. MINES AND MIIfING. The report of the Mine Inspector shows that the number of mines operated in the State is 208; the total amount of capital invested in mining, $1,9/5,030; the number of miners, 6,403; the number of fatal accidents among miners during the year, 7; the number of non-fatal acoidents, 9; total number of accidents, 16, which was 16 less than last year; but the inspector is of the opinion that all the accidents that occur in mining are not reported to him, and recommends an amendment to the law requiring owners and operators to report accidents to the Inspector. The output of coal the last year was 3,000,003 tons, being 25,000 more than was reported last year.

PLEURO-PNEUMONIA. In my inaugural address, I called attention to the alarming spread of pleuro-pneumonia among, the cattle in New York, Ohio, Illinois, Kentucky and other States, and that our own State was threatened with an invasion of said disease, and recommending legislation to protect the cattle interests of Indiana from the same No action, however, was taken in relation to the matter by the last General Assembly. The disease continued to increase to such an alarming extent in neighboring States as to make its introduction into Indiana imminent, and causing great anxiety and alarm among the cattle-growers of the State. Believing it proper to do everything possible to prevent its introduction into this State, I issued a proclamation on the 10th day of November, 1885, prohibiting the importation of cattle into this State except under the regulations provided for in the proclamation, and while there was no law for the enforcement of the regulations required by the proclamation, yet, generally, it was cheerfully complied with by cattle shippers, and I have no doubt saved the cattle growers of Indiana from great loss, which would have occurred by the introduction of the disease. On October 11, 1836, I issued another proclamation calling attention to my former proclamation, and warning shippers of cattle that the same must be complied with. GETTYSBURG MONUMENTS. Two years ago I recommended an appropriation for the purpose of erecting tablets to mark tbe positions occupied by the Indiana regiments on the battle-field of Gettysburg, which was, perhaps, the greatest battle fought by tho Army of the Potomac during the war, and which shed so much luster and renown upon the Union arms. The Indiana regiments that participated in that great and decisive event were the Seventh, Fourteenth, Nineteenth, Twentieth, and Twenty-seventh, and two companies of the First and six companies of the Third Cavalry. Tho General Assembly appropriated *SOO for each regiment for the erection of tablets, and the act provided “that the Governor, Lieutenant Governor, Adjutant General of State, and five members from each regiment, to be designated by the Governor, be a committee to expend said appropriation and place the tablets in position, in connection with the Gettysburg Battlefield Memorial Association, organized under the laws of Pennsylvania.” In pursuance to the provisions of said act, I appointed a committee from the survivors of each regiment. Said committees located the sites occupied by said regiments, purchased and erected tablets thereon, and on the 28th day of October, 1885, the monuments were dedicated and presented to the Gettysburg BattlefleldJMemorial Association, with appropriate ceremonies, and the committee say in their report that these monuments are a credit to our State and conspicuously mark the several places where in that great battle tho brave and gallant six regiments of Indiana won imperishable renown. The committee report that the battlefield and monuments are cared for by the Battlefield Association, and that many of the States of the Union have made appropriations to tho Association for that purpose, and recommend that Indiana make an appropriation to said Association for the same purpose. WORLD’S INDUSTRIAL AND COTTON CENTENNIAL EXPOSITION. The last General Assembly passed an act appropriating $3,90.i, or so much thereof as might be necessary, for the purpose of maintaining and preserving the exhibits of the State of Indiana at the World’s Industrial and Cotton Centennial Exposition, then being held at the city of New Or eans. The act provided that the Commissioner for Indiana to said Exposition should, within thirty days after the close thereof, make a full, true and complete report to the Governor of his receipts and expenditures as such Commissioner, and that with said report he should file vouchers for all sums by him expended. As required by said act, the Commissioner, General James K. Carnahan, filed his report, with the proper vouchers, showing his receipts and expenditures as such Commissioner, which report shows an expenditure by the Commissioner of $3,959.34, being an expenditure ol $59.34 in excess of tne appropriation. TAXATION. The decrease of nearly $54,000,000 in the last appraisement of property, notwithstanding tne State is constantly increasing in wealth and population, shows conclusively that a very large claas of property is escaping taxation, and a law should be enacted providing for a system of the most rigid examination in order to prevent the escape from taxation of various kinds of personal property, including money, promissory notes, stocks, mortgages, and the property of telephone, sleeping-car, parlor-car, and trust companies. LABORING CLASSES. The aggregation of individual wealth in various combinations of power, the combination of manufacturing monopolies, and the organization of coal mine and other syndicates with the railroad companies, are subjects that should receive your careful consideration. All these combinations of capital and corporate power are organized for the purpose of forcing up the prices of commodities and the necessities of life, and of controlling the wages of labor, to the serious detriment of the people and oppression of the laboring masses. To such an extent has become the desire to rapidly accumulate wealth, that, were itpossible, the very air we breathe and thd" water we drink would be controlled and doled out to the people at such prices as monopolists might see proper to fix. The laboring classes constitute a large portion of our population ; they comprise, in a great measure, the honest, intelligent, thinking citizens, who seek good government, and are entitled to as full protection at the hands of the law as capital or any other interest, and inasmuch as their capital comprises nothing but honest toil, the enact-