Rensselaer Semi-Weekly Republican, Volume 35, Number 37, Rensselaer, Jasper County, 13 January 1903 — THE GOVERNOR’S MESS AGE [ARTICLE+ILLUSTRATION]

THE GOVERNOR’S MESS AGE

Gentlemen «f th* Senate and Houm of Th* Sixty-third assembly of Indiana confenes at a tira* of universal prosperity. F*ac*, happiness and rontantment more -famrally prevail thap at th* convening of W ether newton *f the general assembly I* th* history tit onr commonwealth, and 1 Join with th* poople of th* state in returning thanks to the Giver of all gifts for the generous bounty He has bestowed upon us all. Capital and later are profitably employed and mutually satisfied; industrial and manufacturing enterprises ar* converting •Ur resource* into products which ar* bong carried Into every avenue of trade and fOmtnarc*; the farm and factory ar* richW productive; railroad construction is opening n*w territory, and applied electrlc|fy Is Connecting onr cities and towns into Cios* neighborhoods. As a result of your deliberations I bespeak a session fruitful of Just and conservative legislation along the lines of the State's needs. Indiana'* foremost position among th* states of the Union has largely resulted from the progressive and oonxeb ftr’Tr ia?? t

jatlve legislation of Its general assemblies. *ou are commissioned directly by the people to enact Jaws for tbelr.government and protection, and I am sure that you will reflect by your actions the will of the people. Party responsibility attaches to the adnlnlstratlon of state affairs, but partisan politics, as a motive, has no place in its management or control. The best politics Is exemplified in fidelity to official duty •nd the protection of the Interests of those Whom we serve. Without any abatement t)f loyalty to our political convictions, let the master motive be one of serving the •rate by giving it our patriotic services, to the end that Indiana may continue to be one of the most progressive and prosperous states of the Union. The financial condition of the commonwealth is one that can justly claim the pride of every good ciflsen. Each individual taxpayer of Indiana is a stockholder 18 the great business affairs that so largely form the responsible duties of stat* administration. Not only in the receipt and disbursement of taxes and fees is there care and jedgment to be exercised, but • paramount obligation of loyalty to the requirements of the statutes must be enforced. Any haphazard, tentative poliey M dealing with the finances of the public In • monstrous wrong, and can but result ta extravagance, waste and official scandal. The fact that tbe money in the state's treasury Is the contribution of the people for the purpose of good government, is. Of itself, sufficient reason why a jealous - guardianship should be associated with Its alsbursemefit, and, as a business proposition, there can be no justification or toleration in not requiring fidelity in accountIhfs, detail in Itemization, and a strict construction of tbe appropriation acts as to the latitude of expenditures. Public fiscal methods should be the exemplar not Only of eclectic principles and practices, but in all that Is so diversely assocthted with careful, conservative and cleanly business management. Other states have separate bureaus with retinues of officers and clerks for insurance, building and loan, banking, lands, railroads and varied departments of governmental oversight, that furnish meagre duties and substantial sal ary lists, but Indiana saves this unnecessary expense by merging under central authority these subordinate divisions, thus not only saving thousands of dollars in •uperflupus expenses, but giving the public much better and more methodical service. The Incidental factors that have given to the taxpayers substantial records of the admirable and purely business financial Status of our beloved state institutions, the " practice of economy, uniform fiscal methods, tbe exclusion of parsimony and waste due to careless disci!pine, the identity of the dollar in accounting from purchase to consumption, and the employment of all surplus revenues to debt reduction instead of permitting the same to needlessly •well the idle balance in the treasury. The tax rate In Indiana is one of the lowest of any of the states of the Union, and when the growing necessities, both as to permanent improvements and yearly maintenance, are taken into account, was •ever as llcht as at present. The state revenue and benevolent institution levies of 14 cents are really all that go into the general fund. The school revenue is redistributed on a statutory basis; the slight specific levy for the state debt can be used only for Its prescribed purpose, and the one and twothtrds cents to the educational Institutions, aggregates the 29 2 3 cents of the state's share of taxes. The average rate tn Indiana is about $1.50 on the *IOO, so it will be seen the burdens of taxation are local. Permit me to suggest that the problem Involved in the solution of high tix levies is associated with township, county and city governments. There never was a greater demand for careful and economical business administration Of local public trusts than at present. The careless and shiftless handling of public re ’ eM P e * inevitably produces extravagance and deficits, and In this age of practical economics there is no room or reqson for prodigality, political pensions or selfish inThe aggregate taxes of tbe state revenue and benevolent institution funds, collected In 19Q2, were *2,018,748.00. The amount of fees paid Into the treasury by the state Officers was *302,035.02. making an aggregate of *2,413,783.52, which, with incldefital minor collections from receipts and earnings of the different institutions of the state,, constituted the general fund. The th * Btnte •’ *l-897,-St mort «««e exemptions U *85,169,260; the amount of detaxes la *2,633,400.51. I especlal•7.direct the attention of the legislature to *’ c ?si ve delinquency. The legislature of 1807 nought to correct this great wrong In Increasing the county treasurer's commission on delinquent collections from • to « per cent, but this .has not proven entirely efficient. That delinquent taxes eaa be collected needs only the scanning . 1 f . rae P t s heeta ,B Counties where ofSClal duty has been perform often F® cause for not A> pay is the fear of political consequence In renomlnafhm or election. If the legislature, in its wisdom, can enact a remedv. It shoald be done X suggest that the law limited tt Marlon county bo applied to tbs whole state, namely, to allow the county treasurer to pay 60 cents as a demand fee for collecting delinquent taxes on personal property, or for collecting de■„n®ffi»e»t poll tax. This Jaw has proven « «n«at efficient means for collecting dellnqaent taxes from those who own no real SsrSE*' the ’la% Tunnfti ‘

the legislature the following payments have been made: June 29, 1901, 3 per cent school refunding bonds $ 300,000 Jah. 2, 1902, 3 per cCnt school refunding bonds 317,000 July 26, 1902, 8 per cent school refunding tends .. 1,000,000 Jaa. 5, 1900, 3 per cent school refunding bonds 200,900 Total ...>1,817,000 Of this amount >793,963.34 accrued from the special levy, and the balance, or >l,013,080.66, was derived from the general fund, >635,859.20 of which being the amount of th* war claim for Interest and discounts Th* annual interest charge now la >OS, MB. The unpaid balnnce of the state debt is >2,687,615.12, which is represented as follows: " ■ 3 per cent refunding bonds, 1889 ,>1,113,000 00 3% pfr cent temporary loan, 1895 ... 585,000 00 SH per cent temporary funding loan, 1895 500,000 00 5 per cent Purdue University, 1900 340,000 00 6 per cent Indiana University, 1887 144,000 00 State stock certificates.. 5,615 12

Total >2,687,915 12 Of the above amount >1,113,000 of 3 per cent bonds have the optional clause and are redeemable at the pleasure of the state; the >1,085,000 3H per cents can not be paid until 1910, and are du* 1915; th* >340,000 5 per cent bond, in accordance with the act of congress requiring the stat* to perpetually guarantee this bond and rate of Interest, was, by an act of the legislature of 1901 (pp. 34-35), renewed April 1, 1901, by the governor and state treasurer for 20 years. The 5 per cent bond for >144,000, due to Indiaua University, is also perpetual, so that the principal of these amounts can never be paid. The state stock certificates, >5,615.12, are internal improvement «ertificates. the interest on which has ceased, and although the stat* has published far and wide it* desire to redeem the same, only >I,OOO has been presented in recent years, so that it is fair to presume this remaining amount lost. Thia practically reduces the debt to >2,198,000. I deem it the part of financial wisdom to continue th* debt-paying course and retain the present state debt sinking fund levy. The steadfast purpose of the commonwealth should be to free itself of debt and interest and then maintain this condition. There Is an approximate identity between the. Individual in debt mortgaged by fixed charges of interest, and t&e state, which is but the composite of it* citizenship, with bonds •nd attendant coupons Inexorably sapping tolls from th* treasury. The individual free from financial shackles and the commonwealth independent of bonds and bondholders, combine both abstract and concrete evidence of prosperous conditions, and relative to the state are inviting to investments, business enterprise and substantial citizenship. The claim of the state against the federal government for interest and discounts on Its bond* and obligations, made necessary in the recruiting, equipment and maintenance of the volunteer soldiers of Indiana in the war for the Union, was presented to the treasury department by At-torney-General Taylor nnd the accounting department of the stat*, and the sum of $635,359.20 was paid. This amount was immediately applied in liquidating the state debt, and was included In th* >1,000,000 payment oa July 18, 1902. This claim was an original one on th* part of Indiana, and its collection was mad* possible by congressional action legalising interest and discount* as a proper charge In th* war expense* of the stat*, authorized by the federal government. Its collection was without any fees or costs, the officials of the stat* presenting and prosecuting it to a successful conclusion. In addition to the services of the state authorities in this matter, th* congressional delegation rendered valuable aid in furthering legislation and securing a prompt appropriation for this just, though tardy, reimbursement. I would recommend that the tax levy remain unchanged. With the accruing revenues to the general fund, and the fees from the different bureaus of state government, there will be ample resources to provide for all the legitimate expenses of the commonwealth, make sufficient appropriation for th* maintenance and repair* of our institutions and keep pace with the growth and necessities of the state In continued enlargement and construction that from year to year may be necessary. BANKS AND TRUST COMPANIES. The state banks, trust companies and saving* banks are in a flourishing condi•tlon. It is a matter of congratulation that these financial agencies of th* people are In a position of assured strength and under such careful, conservative management that the public has little fear or alarm as to future conditions. The history of banking institutions in Indiana in the past few years has been one singularly fro* from experiment or danger. There has been no failure In any part of the' state banking institutions during the past two years, and no losses have accrued to a single depositor. / There are now 114 state banks. The statement of condition on Oct. 31. 1902, showed that the aggregate capital was >4,884,490, with a surplus of $915,443.78. They had bills receivable amounting to >18,805,185.86 and deposits amounting to $20,547,906.52. This Is the largest volume •nd the most satisfactory condition of business ever known in the banking history of Indiana. The law ought to be strengthened in that the establishment of branch or collateral banks should be permitted. At the present time the law is silent upon this proposition, but there is an Inclination occasionally to do a branch bankihg business as offshoots from a single organization, which, in my judgment, should not be permitted. There are a very large number of private banks In Indiana. The law treats organizations of this character a* copartnerships, and fixes the financial responsibility accordingly. I recommend to the legislature that the law should definitely fix a capital to be fully paid in pash as a basis for private banks, the minimum amount being $25,000, the same as now provided for In the organization of state banks. There has been an increasing number of trust companies organised each yeas since the law was passed. At present there are 37. They are uniformly prosperous and occupy the fiduciary fields In the respective locations. The average rate of interest paid by these companies for savings is generally 3 per cent per year, compounded semi-annually. There is a growiifg tendency on the part of a number of trust companies to do a semi-banking business. Th* statute is not clear in it* limitations. It should b* amended so that they could not invnde the field of commercial banking, but should be restricted to th* Jntent of the law, confln/ng their operations to a trust field and not general or commercial banking. SOLDIERS’ AND SAILORS' MONUMENT. On the 21st day of October. 1901, the board of control of the state soldiers’ and sailors’ monument officially reported to the governor the completion of th* monument, •fter • period of almost 14 years «|nce ground was first broken for the foundation of th* massive shaft. The record* show that th* entire cost of the monument aggregates >598,318.76. Th* monument is a source of pride to every citizen of Indiana. It Is the greatest soldier*’ monument on earth. On the 15th day of May, 1902, this monument was formally dedicated. Th* Mexican war veterans, the Grand Army of th* Republic, th* Spanish-American war veterans, the Indians) national guard and other organized military and civic associations, together with a vast concourse of citizens, participated In the dedication. Th* ceremonies Incident to such dedication w*r* worthy of th* magnificent memorial to Indiana's heroes of all th* war* In which th* soldier* of Indiana have participated. By law th* battle flags carried by th* Indiana soldiery in th* war of the rebellion wer* for the last time taken from their receptacle* in the state house and were carried in the great procession by those who had rallied around them In the awful ■torm of war. From every part of the •tat* patriotic citizen* came to witness th* ceremonies. Not only official* of Indiana, but official* and representatives of other states united In the solemn rite*. Member* of every regiment that left Indiana from 1861 to 1865 to help preserve the union surrounded the tattered flags thmr one*-carried to battle. The few ro matnlng member* of once strong regiment? emphamM th* troth of how great is th havec nf war. Indiana is justly proud of ■6k great monument, which stands a« a feNMKMI tribute to the heroes, living and who aided in saving tUc Ualea.

GOV. WINFIELD T. DURBIN.