Rensselaer Republican, Volume 19, Number 19, Rensselaer, Jasper County, 13 January 1887 — Page 2

INDIANA AFFAIRS.

Biennial Message of Governor Isaac P. Gray. The Financial and Industrial Condi* •- tion of the State. Gentleman of the General Assembly: In obedience to the provisions of tue Constitution of the State, you have assembled to enact such laws as in your wisdom tqe wants of the State demand, and it affords me much pleasure to welcome the chosen representatives of the people in this new Capitol, in which you have been permitted to meet, prior to its completion, through the kindness of the contractors. The room* designed for the use of the General Atuembly and their respective officers and eommitteee. and also such rooms as could be prepared for the use of the State officers, were tender*! to the State free of charge, upon the condition that the State shall indemnify the contractors against any damages, to «ny part of the building, which shall be occasioned by such occupancv. Their offer «M 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 scsion. leave an enviable and honorable record, to. which, nt all times, you will have just cause to refer with becoming pride. , »

Public Debt. The indebtedness of the State may be given in a tabular form as f< hows ■ FOREIGN DEBT. Five per cent. State stock certificates, issued undertho adjustment acts of 1846 and 1847; dne and- interest stepped Sept. 1, 1873' $14,<69.99 Two and one-half per cent. State stock certificates A 2,350.13 Three and one-half per cent, registered funding bonds, loan, dated April 1, 1885, payable April 1, 1895, issued under the provisions of an act approved Feb. 21, 1885, and held ns so lows German Savings Bank in the city of New York 400,000.03 Drv Dock Savings Institution of the ' cityof-New York 100,000.00 Citizens’ Savings Bank of New York City.... 85,000.00 Three and one-half per cent. Registered Bonds, Temporary Ixiau, issued under provisions of an act approved Feb. 21, 18S5, dated March 1.1835, and payable attho pleasure of the State after March 1. 1830, duo March 1, 1895, held as follows: Dime Savings Bank of Brooklyn, New Y0rk...... j 00,000.00 German Savings Bank in the City of New York. 100,000.00 Three and one-half per 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 31,1885. held as follow s : Bowery Savings Hank of the City of New York 8400,000.00 Citizens'Savings Bank of the City of New York 100,000.00 Total foreign debtyv.-yrrrTTvvv..Bl,7oy&.l2 IWMESTTV debt. School Fund Bond No. 1, issued January 1. 1867, bearing 6 per cent, interest 5709,(124.85 School Fund Bond No, 2, issued, January 20, 1867, bearing 6 per cent, intere5t2,658,057.30 School Fund Bond No, 3, issued May 1, 1868, bearing 6 per cent interest.. 184,234.00 School bund Bond No. 4, issued Januarv 20,1871, bearing 6 per emt interest 177,700.00 School Fund Bond No. 5, issued May . X isa, bearing 6 per cent, interest, , 175,767.07 Five per cent. Bond held by Furduo University at Lafayette, Ind., due April 1, 1901 340,000.00 State University. (Bloomington) Bond, in custody Treasury of State, dated October 1, 1885, bearing 5 per cent, in Merest. ........ ...60,000.00 Total domestic debt .$4,304,783.22 Total State debt.,56,006,608.34 AMOUNT OF INTEREST ON FOREIGN DEBT. All of which is paid semi-annually, as follows : Funding bonds, temporary loan (principal 8585,000. interest 35$ per cent,), payable April 1 and Oct, 1. .820,475.00 Temporary loan bonds (principal-S6OO,- * ojß. interest 38, per cent.) payable Sept 1 and March 1 21,000.00 New State House bonds, temporary , loan (principal 3500,000, interest 3 percent; payable Mayl and November 1...... 17,500.03 AMOUNT OF INTEREST DN DOMESTIC DEBT. Interest payable semi-annually, April 30 and October 31. Six school fund bonds, numbered from one to five, inclusive, aggregating $3,904,7X1.22. at 6 per cent5234,286.(9 Purdue university bonds, 8340,003, at 5 per cent 17,030.00 Indiana university bond (Bloomington], $60,000, at 5 par cent 3,000.00 Total amount intere5t.5313,261,99

State Finances. r~ The reports of the Auditor of Stat > for the fiscal years ending Oct. 31, 1385, and Oct. 31, 1886, will give you in detail the financial transactions of the" State Government for those two years. For the past ten years the tax levy for State purposes -has -l>ee»-ftxed-by4aw at- lieents en the tltM. and at the time such levy was ft ed it was only deemed to he sufficient to meet the usual anil ordinary expenses of the State and its institutions. In that period the State has largely developed in her material, financial and commercial rosources, and.the costof the maintenattco cipher institutions has also increased on account of the increased .number of inmates, New offices have been create.!, 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, therehave been, from time to time, as each General Assembly convened, appropriated from the general fund, from which all the expense? 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 w ay of advances by several County Treasurers, as provided bylaw. The amount of advances has increased from year to year, as the pressure upon the Treasury for funds has grown, until such advances for the fiscal year ending October 31,1886, amounted to the sum of 8440,804.65. ■ ■ 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 8200,000 has been appropriated and paid from the general fund. The construction of the Female Department of the Indiana Hospital for Insane, at Indian- - apolis. begun in May. 1875. and completed June 2. 1884. was wholly paid for by appropriations cut of the General Fund at a cost Of 3723,000. of which sum $522,001 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 Fund. The amount now authorized by appropriations to be drawn from the General Fund on account of these institutions is 81.163,800, of which amount there had € been paid at the close of the last fiscal year the gum of 8747,255.73.

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 $1,203,852.0.’, and show the continual sapping of the revenues, which were only intended to pay the current expenses of administering the Slate government. ■ — The amount expended for like purposes from January L 1877, to November 1, 1883, was perhaps as large. In the faregoing amount there has teen no attempt to include many small specific appropriations or the increase incurrent expenses of our great and growing State, occasioned by the legitimate 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 February 21, 1885, authorized the Governor, Auditor and Treasurer to make a temporary loan of $609,000.00,. redeemable at the pleasure of the State after five years and payable in ten years, at a rate of interest not exceeding four per cent, per annum. It was also provided in ttwaine act, that whenever it was ness 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, tiny ware authorized to fund such indebtedness at such lower rate for a period not less than five years, n« more than ten years. There wm outstanding at the time a tem-

porary loon of indebtedness of * 83,000, issued April 1, NB .payable April, 1, 1883. and redenmnnnFSi pleariirvftrtho State after Avril "1. 1841. b -aring interest at the rate of 5 per cent per annum. It was sMnrtatned that such indebtedness could be funded at a lower rate of interest! Blds were invited through public .advertisement upon each of said loans, and the loans were awarded to Mr. Walt) r Stanton, of New York City, as the lowest and best bidder. The bonds of the State, dated April 1, 1885, were issued, denominated 'registered bond, temporary loan "for 8600,000. bearing 3tg per cent, interest, pavable semi-annuallv, upon which loan the State received a premium of 1% per cent, amounting to *8,250, and the sum of *668.250 was paid into the State treasury to the credit of the general fund. Similar bonds denominated 'registered funding bond, temporary loan," for *565,000, ware issued payable in ton years from April 1, 1885, bear ng interest at 3S percent. per annum, and with the proceeds at said bonds the State redoi med and canceled said outstanding temporary loan bonds of 858.5,000 issued April 1,j1879, bearing 5 per cent, interest A premium on the new bonds of IK per cent, amounting to 810,965.73, was received and paid into the State treasury to the credit of the general fund. . ’' Tne premium received upon the $600,000 was much smaller than received upon the 8585,000 funding loan, because the law required the former to be redeemable st the pleasure of the Stat ■ after five years while the latter was payable in ten years, capitalists regarding it a very desirable investment. The General Assembly, bv an act approved March 31, 1885, authorized the Governor, Auditor, and Treasurer to make a temporary loan of $500,003 by issuing and selling the bonds of the State, redeemable in not jess than five nor more than ten years, bearing interest at a rate not exceeding four per cent, per annum, payable somi-krinually, to meet the appropriations for the new state House. According to public not! - o of the sale of said bonds, said loan was awarded to the lowestand best b(dd< r, and in pursuance of such bids the bonds of the State wore issued, .denominated “Registered New State House Bond. Temporary Loan," dated May I,’lßS>, payable in ten years, bearing three arid on> half, per cent, interest per annum, payable s< mi annually, upon which loan the State received a premium of inean.l one-half per cent, amounting to $7, .00. and the sum of ;5)7,500 ,wae 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 that said loans were negotiated at a rate ot interest, with the premiums received, that will make said loans average about 3J6 per cent., and the refunding of said temporary loan of April 1, 1879. will moke an annual saving of 88,775 in inter e-t. Under provisions of "An act to provide a fund for the permanent endowment of the Indiana University and for the investment of the same," approved March 3, 1883, a sum exceeding 560,000 of said permanent endowment fund had been paid into the State Treasury, and, the State needing a loan to meet a casual deficit in the revenue and to pay the interest on the public debt, the sum of *60,090 Was, in pursuance of section 6 of said act, transferred from said fund to the credit of the general fund. As provided iu said act, a non-negotiable 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 paid semi-annually, on the first days of May and November, in each year, until said bond is paid. The total amount borrowed for the benefit of the general fund was 5660,000, and, deducting such icmount from the amount of the said extraordinary expenses, $1,208,852.02; will show that during said years 1883, 1884, 1885, and 1886, the sum of $548,852.02 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 engage in the construction of expensive and elaborate improvements without increasing the tax levy for State purjioses, or borrowing the necessary moneys to meet the uddiiionol cost of such improvcm-. nts. Considering the' excellent credit of the State, I havo no hesitation in recommending the 'borrowing Of the necessary funds in preference to increasing the rate of taxation. The net receipts to the general fund from all sources, exclusive of 8257,936,75 advanced by counties .and 8679,215.75 received on loans, for the fiscal year ending October 31, 1885, were $1,424,249.10, while the expenditures from the same fund, exclusive of advances returned to counties during such year, pursuant to appropriations, were 52,'83,085.61. The net receipts to the same fund, exclusive of advances by counties, for the fiscal year ending Oct'S!, 1.a86, 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 81,619,537.48, 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 ta meet the appropriations. The state is paying annually about one-fifth of its entirereveniio as interest on its domestic debt. which consists of non-negotiable school bonds of 53,904,783.22, issued in 1867 and 1868, bearing 6 per cent, interest; a non-riegotiable Purdue Universitj’ bond of $340,000, issued in IXBI. be ring 5 per cent, interest, and a nou-ne-gotiable State University bond of 860,000, bearing 5 per ceut. interest; and I earnestly recommend a reduction in the interest on the $3,904,783.22 school bonds to 3 or 3u, per cent., as I believe the revpuuJs to the School Fund would st'll continue to bo sufficient. If, however, it should be deemed preferable, inasmuch as the State cun borrow money at a much lower rate of interest, a loan could be authorized to pay oil the entire non-negotiable school bonds, rind after the payment thereof provide 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 eent., which I believe to be possible, it would result in an annual saving of interest of 5117,143.53, 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 df tt'temporarv loan. In order to provide for the wants of the State aud the completion and equipment of the public buildings 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 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 paying off or purchasing the State s bonds for cancellation and. destruction, thus liquidating the. State’s indebtedness caused by the construction of the new public buildings, without increasing the present rate of taxation. With the signs of increased prosperity I trust that we may reasonably anticipate some increase in the’ 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. But I assure you that this can not be done without your assistance in zealously protecting the treasury from doubtful claims and extravagant appropriations. Public Buildings. NEW STATE HOUSE. The construction of the new State House, in accordance with the provisions of an act of the General Assembly, approved March 14, 1877, is fast approaching completion, and will, doubtless, be reaily for acceptance and occupancy 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 the expenditures to complete the House and to provide the same with furniture, for both of which purposes additional appropriations will be necessary. Your attention is also called to' needed .legislation to provide for the care and custody of the new State House after its completion and acceptance by the State. ADimOXU, HOSPITALS FOR THE INSANE. The law authorizing the construction of three additional Hospitals for Insane was passed in 1381. Tbs law required that two commissioners should be appointed from each ot the two leading political parties to superintend their construction. My predecessor appointed as such commissioners Gen. Wm. Grose, Hon. De Forest Skinner, CoL Joseph B. Gray and Hon. John C. Robinson. The location of the several hospitals was fixed, one each st Evansville. Richmond and Logansport; the plans aud specifications adopted, and. the contracts for their construction let, and the buildings commenced before the commencement of my official term. The board aa constituted by my predecessor was continued by myself, and so remained until October 25, 1885, when Gen. William Grose resigned, and has since been elected a member of the present General Assembly. The Hon.

Eugene H. Bundy wm appointed to fill the vacancy. ! Inquiry made Inst September through the I State Board of He dth, sh wed the nnmb'er of insulin persons confined in the jails and poorhonses of the State to -bo about 1,190, and it le re|x>rteil that some are locked in cells, some wear ball and chain, and others are chains 1 to the floor. I need not urge the necessity of an early completion of the hospitals in order that those poor unfortunates may have proper care and medical treatment. . • ~i The total amount appropriated for the construction of the three. Hospitals is *1,163,8)0, and the Board asks an additional appropriation of $107,000 to complete and equip ths institutions. Of the allowances male to the contractors there has been paid $747,255.73, leaving a balance of the appropriations for said Hospitals unexpended ot 5419.556.05, which amount was unexpended because the receipts to the General Fund were not sufficient to pav allowances against the same, and me<-t the large oxpenI ditures 'for the maintenance of the State government and the public insttrutions. The Medical Engineer estimates the annual cost of maintenance for each of the three hospitals for the fiscal year ending October 31, 1887, at 830,030; for the fiscal year ending October 31, 1888. to about $70,003, and for the fiscal year ending Oct >bor 31,1883. *70,033. Tho board presents with their report such bills as they deem necessary for the organization and government ot each institution when completed, the basis of which is a board of four trustees for each hospital, tho 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, f r tho purpose of adding to its symmetry and procuring bettor access to the grounds. The board having purchased to the limit authorized bv law, must have some additional authority to purchase the land. I commend the matter to your Investigation and consideration. State Institutions, STATE UNIVEIISITY. Indiana University is taking rank with tho very best educational institutions in the West; the number of students is steadily increasing each year, and the work done in tho University is equal to that d me iu many of the more pretentious universities. ’ Tho library has been largely increased by well-selected volumes. Tho museum is very extensive. The laboratories now afford unsurpassed facilities for practical work. Tho faculty is composed of mon of high character and finished education. I commend tho University to your favorable consideration. THE STATE NORMAE SCHOOE. The success of tho school has demonstrated its usefulness as a factor in developing professional teachers, and in promoting the cause of education. Duririglhe seventeen years of its existence the average attendance has increased from 47 to 433 students. During the last two years 81 per cent, of the students have come from the homes of fanners and mechanics,. and eightv-seven counties of the State have been represented. PUBLIC SCHOOLS. The excellent report of tho Superintendent of Public Instruction contains the evidence of the increased prosperity and efficiency of opr common school system." Tho common school fund has been increasing at the rate of about 860,00<) per year for several years past, and now amounts to 89,458,081.71. INSTITUTION FOB THE DEAF AND DUMB. The report of this institution for the year 1886 shows tho value of the real estate is $459,000; personal property, $44,833; total, $503,810,97; value of products of farm and garden, $3,618.65; earnings of the institution, $62.81; value of clothing furnished pupils and returned to State treasury for collection, 5‘363.93; appropriation for maintenance, 8-55,000; expended from maintenance fund, $52,069.98; appropriated for repairs, 83,000; expended from repair fund, sl,338.45; special fund, $726.27; expended from special fund, $195.35; number of pupils in attendance, 316 ; per capita cost, $151.52. Tho Superintendent's report shows that the health of the pupils during the year has been good, aud that a marked improvement has been made in educational methods. INSTITUTION FOll THE EDUCATION OF THE BLIND. The Trustees in their report estimate the value of the-real estate at $3)6,238; the personal property nt 817,760.66; total valuation, $373, >198.66. They report expended for currant support, $23,832; for repairs, $1,996.67 ; total expenditure, 82 ',838.67. The institution furnishes the pupils tuition, board and xvashing only. The Superintendent s report shows that the school session commences on the second Wednesday in September, annually, and continues forty consecutive weeks, at the expintion of which all the pupils are required to be removed from the institution. The whole number of pupils enrolled during the session pf 1885 was 126. The total number enrolled during the session of 1886 waS.l3O, 60 males and 70 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 property. $221,060.95. Total, $1,651,210,95. " I < There was appropriated for the fiscal year ending October 31, 1885, for maintenance, clothing and repairs, 8283,000. 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 too 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, 8319,087.90, and in the fiscal year ending October 31, 1886, 8298.958.60, showing that the entire appropriations of the two years of $634,5u0 were all expended sum of $16,453.50. The average number of patients during the year 1885 was 1,422 ; the average number of patients for the year 188) was 1,542. The per 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 $160.02. Taking the total aisbursenients for each year, less the expenditure for clothing, the per capita expense . for 1885 would be $216.08, and for 1886 Would be $lB i. 19.

The Superintendent’s report shows the nunipor of officers and employes"Eol>e upward of 3d ), 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 Stated 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 FOB feeble-minded children. The last General Assembly amended the law for the government ©tithe Soldiers'Orphans’ Home and the Institution for Feeble-Mindea Children, which provided that the Governor should appoint three Trustees, one at least, should be a woman, aud 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 Humber of votes at the last general election. j In pursuance of said amendment, I appointed as a board for the management of said Institution the Hon. Ben L. Smith, of Rush County ; Captain James H. Harris, of Hamilton County, both honorably discharged Union soldiers, and Mrs. Sarah E. Pittman, of Monroe County, 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 moke repairs and beautify the grounds during the coming year without increasing the expense of their management, when, on the 21st dayof July, 1886, a disastrous fire destroyed the main building of the Institution, but providentially no lives were lost. The Jbuilding was insured for 825,000, $20,000 of which has been paid, and $5,090 is now in litigation. The grounds consist of fiftv-seven acres, which are valued by the Trustees at 84,500; the walls and foundation of the building at 517,000; boiler-house, boiler and engine, $4,500; laundry, bakery, school-house, nursery, barn and other buildings, 82.500—total valuation, 328,500. The Trustees have been moved to prompt action to rebuild, in order that a home may again be provided at as early a date as possible for the inmates, and I commend their" action to vour 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 .construetiQn. STATE PBISON SOUTH. The report of the Directors for the State Priseu 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 84,307.61, expended for repairs for the fiscal year ending October 31, 1886, were $82,255.45; receipts and earnings, $79,590.12, showing excess of disbursements over receipts, $2,665.33. 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. ■ Up ".I’,". BTATB PB4SOX 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 disbursements, including repairs,

officers’ salaries, and *26,637.25 expended for I improvements, were 15. The excess of I receipts over all expenditures was J 37 559.52 ' Tno monthly averageinumber of prisoners was ' I 702; number of deaths. 8, aud number of pris- ♦ i oners October 31, 1885, 703. Fur the fiscal year ending October 31, 1886, the I receipts and earnings were *111,430.10. Total i disbursements, including repairs, addition to ■ library, and officers' salaries, were 196,712.37. The receipts over expenditures, *14,717.73, I showing an increase of receipts over previous year ot *8,2Q*,43, and a decreasein expenditures of $2,950.15, 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: I 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 ounditlou Jot the prison during the last two fiscal years has been excellent, and tho health ot the prisoners has been good. , REFORMATORT POa’ wOMeN AND GIRLS. The report of this institution for the year 1886 shows that there were in the Penal Department 54, and in the Reformatory Department 129. Average number tor the year, 181. The expenditure for maintenance au l repairs was $30,000. The net earnings of the institution for the year, including amount received for boarding one United Htates 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, sl6L:>s. Earnings, per capita, per annum, 84.19. 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. ' win established in 1868. There have been adsnllted to its guarUiauship since its openiu/, lanuary 1, 1863, 2,439 boys. Therewere, aX the close of the present year, 516 in the institutl m, an increase of 76 over the preceding year. There were admitted during tho last yOar 203, and released zl i. The Institution has been remarkably' free from disease, not a single death having occurred during the last year. This fact speaks liigtily for the sanitary condition of the Institution, its discipline, and the care,and attention given the inmates. The appropriation Inst year for the mamtenance of the institution was UcO.ocO. The Trustees ask an additional appropriation of 85,003, on account qf needed improvements, and also recommend that legislative provision be made for the.appointment of a “visitor” to visit the boys out on ticket-of-leUve, 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 iu 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. A 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 bo 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 comp iance 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 age, in many instances their first offense, and in many cases the offense a technical one, aud 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 aro under 33 years of age. To expect to reform this class of prisoners by their forced association with hardened and confirmed criminals, murderers, thieves aud counterfeiters would be to reason that evil associations do not contaminate or corrupt. Those who have had experience in the management of prisons, and also those who have given careful attention to the impress made upon the character of rhe young af>a comparatively innocent convict, by the aggregate prison system, testify to its hurtful influence, and tho almost impossibility of effecting reformation under such a system. ■

... Miscellaneous. PUBLIC PBINTING, BINDING, AND STATIONERY. The report of 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, aud 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 public 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. STATE BOARD OF HEALTH. The report of the board ebntains much interesting information,and give? a detailed account of their expenditures. The amount appropriated was $'.,000, all of which was expended, except the sum of 56 cents. The board states that as the people become more familiar with the operations of the various health organizations, and the objects to be attained, the more popular the law be oni'is, and the more readily the rules and regulations of the board are observed. state Library. The State Library was organized in 1841, and at the close of the last fiscal year contained 23,444 volumes. During the period of its existence it has been under the management of eighteen Librarians, holding an average tenure of 2% years each. In so short a period a Librarian is barely able to become familiar with the 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 profit of the State Fair of 1885 was 87,924.20, and of 1886, $8,645.59. The Board has reduced its debt of 860,010, bearing 10 per cent, interest, to $35,000, bearing 6 per cent, interest. The Board asks an appropriation.by the General Assembly sufficient to pay the interest on its debt for the coming two years, and authority to have not less than 8,000 copies of its annual reports printed. STATE GEOLOGIST. The State Geologist has submitted to me a report of his labors and discoveries for the two years ending Oct. 31, 1886. 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 forge of the State to consist of three regiments of infantry And ono regiment of artillery. The first regiment of infantry consists of eleven companies, aggregating 571 men; the second regiment of twelve companies, aggregating 609 men; and the third regiment of eleven companies, aggregating 557 men; making the strength of infantry force 1,737 men. The first regiment of artillery 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 number of troops be limited bylaw, so that the State may have, though it be small in numbers, a well-trained and disciplined military force. Indiana furnished 208,367 soldiers for the Union army dwring the late war. Many of the muster-in and muster-out rolls in 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 preserveher, military records, pro-, vision should be made for that purpose. MINES AND MIXING. 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, *1,975,000; the nunjber of miners, 6,406; the number of fatal accidents among miners during the year. 7; the number of non-fatal accidents, 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 In--BlThe,output of coal the last year was 3,000,003 tons, being 25,000 more than was reported last

PLBUBO-PNRUMONIA. In my inaugural address, I called attention to the alarming spread of pleurwpneumonta among the cattle in New York, Onio, 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 fromlhe 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 introduct.on into Indiana imminent, and censing 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 tho proclamation, and while there was no law for the enforcement otthe regulations required by the proclamation, yet, generally, it was cheerfully complied wt i iiy cattle stoppers, and I have no doubt sa o : the cattle growers of Indiana from great loss, .vhich would have occurred by the introduction of the disease. On October 11, 1886,1 issued another proclamation calling attention to my former proclamation, and warning shippers of cattle that tue some must be complied with. . GETTYSBURG MONUMENTS. Two years ago I recomluquded an appropriation for the purpose of erecting tablets to mark the positions occupied by the Indiana regiments on the battlo-fleld of Gettysburg, which was, perhaps, the greatest battle fought by the Army of the Potomac during the war, and which shed so much luster and ienown upon the Union arms. Tho Indiana regiments that participated in thst great aud decisive event were the Seventh. Fourteenth, Nineteenth, Twentieth, and Twenty-seventh, and two comnanies of the First and six companies of tho Third Cavalyy. The General Assembly appropriated iSJO for each regiment for the erection of tablets, and the act provided “that the Governor, Lieutenant Governor, Adjutant General of State, aud five members from each regiment, to be designated by the Governor, be a committee to expend said appropriation and-place the tablets in position, iu connection with the Gettysburg Battlefield Memorial Association, organ.zed under the laws of Pennsylvania." In pursuance to the provisions of said act, I appointed a committee from tho survivors of each regiment. Said committees located the sites occupied by said regiments, purchased and erected tablets thereon, and on the 26th day of October, 1885, the monuments were dedicated and presented t□ the Gettysburg Battle3e!d|Menioiial 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 the brave and gallant six regiments of Indiana won imperishable renown. The committee report that the battlefield and monuments are cared for by tho Battlefield Association, aud that many of the States of the Union have made appropriations to the Association for that purpose, and recommend that Ind ana make au appropriation to said Association for the same pwrposo. WORLD’S INDUSTRIAL AND COTTON CENTENNIAL I XPOSITtON. The last General Assembly passed an act appropriating $3,90', or so much thereof as might bo necessary, for the purpose of maintaining and preserving tho exhibits of the State of Indiana at the World’s Industrial and Cotton Centennial Exposition, then being held at tho city of New Orleans. 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 be should file vouchers for all sums by him expended. As required by said act, the Commissioner, General James R. Carnahan, filed his report, with tue 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 of $5'3.31 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 anti population, shows conclusively that a very large class of propertv 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 t ixat on of various kinds of personal property, including money, promissory notes, stocks, mortgages, and the" propertyof 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 co il iqine and other »yn..icates with the railroad companies, are subjects that should receive your careful i-onsideration. All these combinations of capital and corporate power are organized for the purpose of forcing up the prices of commodities and tho necessities of life, and of controlling tire wages of labor, to the serious detriment of the people and oppression of tho laboring masses. To such an extent has becoine the desire to rapidly accumulate wealth, that, were it possible, dhe very air we breathe and the water we drink would bo 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 ns full protection at the hands of the law as capital or any other inter,, st. and inasmuch as their capital comprises nothing but honest toil, the enactment of such laws as will protect their just rights against the combination of capital and corporate power, secure to thern the prompt and full payment of their wages, and give relief from competition with convict contract labor, should receive your consideration. TOWNSHIP TRUSTEES. The recent fraudulent transactions of township trustees and their exposure during thesummer of 1885 are well known to each of you. Such fraudulent transactions seem to have been confined exclusively to the township trustees of Indiana, and raise tho question whether our present township system does not explain why Indiana was made the field for such fraudulent operations. The duties of township trustee, township treasurer, and township clerk being combined in one officer, and thereby placing the entire management of township business in his hands without any check upon the transaction? of his business, the accomplishment of fraud is made more easy and less liable to detection. The fact that such fraudulent transactions did not occur in those States that have adhered to the old system of three trustees, a treasurer and a clerk will bo • accepted as a better system than the combining of th dr duties in a single-officer. Under out laws, the Common Council of our cities, with a single exception, appoints three School Trustees for the management of the city schools, and for stronger reasons it would seem that the management of the schools iu the townships outside of the cities, as well as the management of other township business, is sufficient to authorize the election ot three Township Trustees, a Treasurer, and a Clerk. I would recommend a return to that system. DEFALCATION OF PUBLIC, OFFICERS, The frequent defalcations of persons in positions of public trust demand your earnest consideration, to the end that more stringent measures may be devised for the pto action of public funds, and I recommend the enactment of a 1 law requiring the official bonds of all State and County Treasurers to be signed byatitast fifty freehold sureties, whose aggregate worth, over and above all their indebtedness and exemptions allowed by law, is double the amount of such bond, and that the severest penalties be attached to the crime of embezzlement. CONCLUSION. It is my sincere wish that your proceedings may be harmonious; that time will not be unnecessarily consumed at the public expense, and that the Divine Ruler of all things may inspire you with wisdom to perform yoitr duties to the”acceptability of the people of the State;

Saving and Spending.

Tbe curiosities of Gotham are numerous, but none excel the scenes that transpire in some of the great deposit vaults. Any fine day dozens of old, gray-haired men can be seen sitting down with their heavy boxes beside them caressing stocks and bonds, tangible evidences of wealth, and squinting with keen cat-eyes at the coupons, to find something collectable on them. Their daughters are out on Broadway and carry dogs; and their sons are off* yachting, or tossing the last bit of gossip at the clubs.. is always good to know, if only in’ passing, a charming human being; it refreshes one like flowers and -woods and dear brooks. The conscience has to do, not with fitness or expediency, or advantage, but with right and wrong.

OCEAN DISASTERS.

The Ship Elizabeth Founders in a Storm Off the Coast of Virginia. Not Ono of Her Grew of Twentv-five Men Left to Tel] tho Stoiy of the Wreck. ,\ (Norfolk (Va.) dispatch.] One of the most disastrous shipwrecks which ever occurred on the Virginia coast happened Sataiday morning, near the Little island Life-saving Station, fourteen miles south of Cane Henry. N<A less than twenty, and possibly more, lives were lost, among them five life-stivmg men, who, in the discharge of their duly, were drowned. The morning was bitterly cold, and a blinding- snowstorm prevailed, with the wind blowing a gale from the northeast During a lull in the storm, the life-saving patrol from Little Island Life-saving Station sighted a large ship stranded on the bar about 900 yards from the shore. When he saw the vessel he was going to meet t ie patrol from Dam Neck station, and exchange checks showing that both patrolnn n had been to the end of their beat. The Dam Neck patrol was only a few yards distant when the vessel was sighted, and both fired rockets to notify the crew of the stranded ship that she bad been seen. They hurried back to their respective stations and g-iyo the alarm. In a little while the crews with life boats and apparatus were abreast of the ureck, and the boom of a mortar announced that a line had been shot out to the ill-fated vessel. This was unsuccessful, and a second was fired with like result. After firing six unsuccessful shots, the lifesaving men determined to brave the furious sea arid the death which seemed certain to await their venture. The word of command being given by Captain Belanza, of LifeSaving Station No. 4, known as Little Island, six of the most expert boatmen manned each boat. At his command the men gave way with a will and in a moment both boats were breasting the furious waves. They reached the ship in safety, and four of the ship’s crew were taken in a life-boat and ten in a ship’s boat, which was launched for tho purpose. The boats were, headed for shore and not a word was spoken, for each man realized the awful peril which surrounded them. With a steady pull the two boats were making good headway for shore when a wave of great power struck both boats, capsizing them instantly and pitching their twentytwo occupants into the boiling sea. Then began a desperate struggle for life, and with many of the men it was a prolonged one. The horrified life-savers on tho beach were poweiless to assist their diowning comrades or the unfortunate strangers. The drowning men were carried southward by the seas, and some of them were washed ashore. As they came within reach they were picked up, and endeavors were made to revive them, and in two instances with success, although one of the two is badly injured. The vessel is 'the German ship Elizabeth, Captain Halberstadt, from Hamburg to Baltimore, and not one of her (few survives her wreck.

SECRETARY LAMAR.

His Marriag* to Mrs. Holt, of Macon, Ga. Hon. L. Q. C. Lamar, Secretary of tho Inferior, was married a few days ago at Macon, Ga., to Ms. Holt, of that city. The bride is a daughter of* J Ames Dean, who was a large planter and prominent politician of Georgia. He was a man of wealth and lived in princely style, just out of Macon, with elegant and hospitable surroundings.’ Miss Hennie Dean grew to young womanhood with wit, wealth, and beauty. There were many suitors for.her hand, but the most prominent were young Holt and Lamar, the for-

mer eager for business success and the management of great industrial enterprises, and the latter with a student’s taste and an ambition for glory and position, but eafih equally energetic in his efforts to secure the hand and heart of the lovely and accomplished Miss Dean. The sturdy efforts of Mr. Holt secured the favor of the parents and gained the love of the maid, and they were united in marriage. Their lives were happy and prosperous. Mr. Holt became very rich, and was a General in the Confederate army. A few years ago he died, and Mr. Lamar renewed his love assault, finally being victorious. The theory of Dr. Wilson of Meriden, that the burning of kerosene oil has something to do with diphtheria, is interesting.. There were seventy-one deaths from diphtheria in a town of Meriden in one year, and by personal investigation Dr. Wilson found that in every case the family used kerosene lamps. There were many other cases in Meriden that year, the spread of the disease being from contagion. But not in a single case where gas or candles were used was there a death from that disease.— New Haven Journal. A thick skull is not usually considered a desirable kind to have. Nevertheless such a skull proved of priceless value, a few days ago, to a young man who, by a mis-step, was plunged through a hatchway a distance of twelve feet, striking on his head, but receiving no permanent injury. His thick skull proved a blessing in disguise. If we take death and eternity into our reckoning,- our avarice, whether ambitious or more sordidly rapacious, receives at last much the same reward; for however great must be our conquests, and numerous our habitations, death levels them, and eternity retains us among their ruins. "Mt lovey-dovey,” he said, “I positively cannot give you a diamond for an engagement ring." “Why, my own popsy-wopsy ?” “Because,” he wickedly replied, “everybody will say I’m stony-hearted.*-.-.,—J r ' _ xs'-'--’.. -l——... ■ -