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Gentlemen of the Senate and op he House of Representativkr ; You assernble xindor circumstances of peculiar interest. Youre is the firet Legislatura Co meet within the wltn of this new Capítol. The erectiou and Wimple'tion of this boüding ia not without aignifieance. It marks tho transformatiou which a few years have ivrought in social and political conditton. It bespeak tho growth of population, tho increase of walth, the advancement of acienct ind art froni the time of the rurte cabjn of the pioner to the eompletion of tliin imposing ■tMOtuie, costing, all fnrnished, $1,500,000. As we devoto it to the on for which it was contrncted, let nu hojsa that u lo í-ouncüi otííI delilwratiom to be held here may conduce to the general welfare, and be iustrumont&l in promoting and perpetuating tho blesainga of liberty and poace. In tho biennial period jnst pasnpl general health has prevailed throngliout our borders, the earth haa produced bounüfully, and the liavveets have been abundiint. We fiavo grown in the State within ÜK past year more thaii 28,O00.00Ü bushels of wheat, and other cereals and f mits in proportion. In the same time we have produced 1,885,884 barrels of salt, 1,125,230 tonis of iron ore, and eopper, coal, piaster, and slate ín very iarge amouuts, of which I have not ful! tatisties for the year. The production of ingot eopper in 1877 wás 19,385 tona. FINANCES. The treaatiry presenta a satisfactory condition. The cash on hand Sept. 30,1871), was $1,064,005.80. The receipts f rom all sources for the two years ending Sept. ;), LS78, aggregatu 4,194,790.21. The total expendihires for the samo period amount to ?4, 858,404. Ui. The balance m the treasurv on Sept. 30 last was 8400,340.35. No ptt of thÍB balance belonga to the general fuña, which ha been ovordrawn in the eum of 173,011.11. The bonded debt of the State on Sopt 80, 11876 was Sl.392,149.97. The policy of extinjijuishing this debt as rapidly as poasible has oeen steadily pursued, and I am gratified to inïonn you that, in the two yt&ra ending Sept. 30 last, it has been reduced in the suiu of $433,000, leaving the total amount ef such indebtedness now standing against the State Í '.69,149.07. Of the bonete thus paid $90,000 werc nurehased before matnrity at a premium of $U, 47(5. 80. The sa ving to the State in interest from this purbase, after dedueting the premium paid, will be $10, '.8. 20. It bt'ing impoBsible to obtain more of tho unmatured bonds at a reasonable premium, the reasurer was authorized by the Board of Fund ("ommissioners to purehase $300,000 in i% per oeot United States bonds, and hold -them to be pplied tnward the payment of the debt Tlüs amouut. with the addition of thp balance in tho ninkiog fund, 378,251.44 and the $46,000 in íh canal fnnd, all set apart and applicable to the payment of the bonded debt, when deducted therefrom reduccB the total amount thereof to the eum of $234,898.53. Then if we take into account 111,827.48 of speeific taxes uupaid Sept. 30, 1878, and due on cali, the State bonded debt, less the funds appiicable to its payment will be further redueedtethe snm of $123,071.05. It tnay lie further expected that the receipts of the inking fund within the coming two years will be sufficient to fully pay off the reniainder of the bonded debt Wo have thus abundant provisión for epeedily freeing the State from all liabilities of this character. The constitution ereates t,e sinking fund and declares that the surplus of the specific taxes received, after payment of interest upon tlfe educational funds and. the extinguishment of the public debt shall h. added to and constitute a part of the primary school interent fund. If no chanye is made in this provisión, as soon ai' the bonded debt is ürovided for, the yearly thereafter will -be received from speciflc axes in the sinking fund. In many instances, especially where tlie scliool districts are large and the settlements sparse, the school fund already provided is almost sufticient to maintain the schools. If it is doubled and further increased from year to year, as it will be if this fonstitutional provisión remains, many districts will shortly have more school money thaii they need, a result not likely to be beneficial to the schools or to the public. Therefore, deoming this enlargement of the school fund not desirable, I recommend an amondment to the consti ution carrying this surplns, when ascertained, into the general fund. The indebtedness of the State to the trust funds on the 30th day of September, 1876, was Y3,u.y,.-siij.vj, ana on tne ülttn of September, 1878, $3,334,777.82, an increase in two years of $245,431.11. This indebtednesa is nowc jmposed of the following funda and amounts: Primary-school fund 2,369,114.15 Five per cent. priuiary-Bchool fund. . . . 315,836.18 tJniversity fund 452.317. 5H Normal-echool fund 53,421.32 Asricultural-college fund 180,784.89 Eailroad and othcr deposita ; 8.30:172 Total $3.324,777.82 Wliile it is eheering to kDow that the bonded ïebt of tbo State ia rapidly deereasing, and through the operation of the sinking fund will aoon digappear, it ahould not be forgottcn that the iadebtednesa to the trust fund has been for yeara steadily accumulating. It aho'ild also be remembered that the present condition of the treasury does not warrant any lavish expenditure of the pnblic moneys. i The maintaining of our reeently-etablished state institutiqns, together with the coat of I heatinc;, lichting, and caring for thia new Capítol building, which necessarily will be very "much greater than formerly, will eonsiderably increaae the ordinary expenses of the State Government. These eonaideratious, taken in connection with the fact that many of our municipalities I are carrying a heavy burden of debt c reatod for I local purposes, should lead you to avoid any ! schemos for additional taxation not of absolute neeessifcy. MUNICIPAL INDEBTEDNESS AND ASKESSMENTH. It is a source of regret that we have no means through the State offices, or in any other manner readily acoessible, of ascertaining the total" indebtedness of the counties, cities, towns, villages, and school districte of the State, or the aggregata amount levied each year in such localities for i county, town, school and road taxes ; such i formation would afford full knowledgr! of the ! complete publio debt of the State and its subdivisions, with the whole ainonnt of taxee Í posed therein; it would enable legislators to act ', more understandingly than they can at present 1 in making appropriations and providing tor just i taxation; it would also ad viso the people moro i porfectly of the sourees that draw means from I theui by taxation, and, I approhend, would ! inote greater care and more equaüty in the position of burdens of this kind. I would rospectfully fuggeBt the propriety of providing, by proper enactment, for such information. The aggregate value of all tho real and personal property of the State, as retornad bv the AssesBors in 1870, was as followa: Real estáte $31)8,75.'i,U';5.7. Personal property 60,127 ,!. 4!l Total 374.881,028J!a It i." alieguü, and I have no doubt with trutli, this vuluation does not show much inore than ono-third of the real worth of the property aasessed. 1 have no information of the aggregate amount of the asseasments for 1877 and 1878, but have reason to believe that they are made upon the same basis. A clauae in our State constitution, which seems to me mandatory, declares that all assessment upon property shall be at its cash value. I cali attention to this subject because, through the decisiona of courts in other Stares, recen tly made, Earties representing large property iñtoi-osts ave been enabled to evade payment of thoir taxes in consequence of disregard of similar tatutory provisión by Assessors. STATE INSTITUTIONS. I toke great pleasure in informing yon that, in almoet every instanee, the appropriations of two yeara ago have not boen exceeded. The State institulious havo liyed within their means, and, by prudently adheiing to a determination to use no more monoy than eould be paid with the ordinary appropriations, they have kopt out of debt, and will coino bef oro you with no den - ciencirs in revenue to be made up and provided for. Tho new policy lias not disturbed the working of the iiiHtitutiouH, nor in any wie npaired their usefulnenf, and 1 hope it v prevail in the future. Their manient, taken as a whole, has been good ■nerally tliey are in excellont order. STATE PEI8OH. te prison continúes to be ovorcrowdmmber of convicta therein on the teptember last was 804, being i: establishment has cells toaccomlaily average for the yoar was ■n for the paat two years wero ■ ! oriliuary expenses $200,J a balance for the whole the prisop of 84,708.64. hé ilJKbiiixiinfintH have ''i th? hum of 1881.78. [euenl depreggion in lesneued the mand for conviet 'b5ï, aiul made it impossible to oontrïn". fu lliG work of the prisoners at as furortibie ratos as formerly. But, in acldition to this, a loes of íl4.t5CS2 sulTored by tho priaon in 1875 and 187Ö on a contract for priaon L-ibor iweil in tlic miumfaoture of cigars, mado with ono Charles HollingsTvorth, nppears as a deficit nov, when, in fact, it wae a losa then. In 1875 IlullingsSvorth failetl. His atock of cigars was taken by tho Isspectors in December of that year by vii tue of tho lïen of the State thereon, and not disposed oí uníil after the animal report for 1876 tf&s made, consoquently the statement of tho loss does not appear therein, as the goodw had not been sold or tho amonnt of thp deficiency aecertainod. With thin loss placed whero it shonld be, thf pttaoti accounts would not at any time wiÜiln tho past two years have sliown :i deficit. The aduition to the east wing of tho prison and to tho wagon shop, as Tvoll as the extensión of the engine room tuthorized by the last Legislature ïinvi' been built. Tho etave shop and coopef shop havo likewisc been constructud, but no work has beon done on the proposMi extensión of tBS prBon walL . The Inspector rnprosent the general management and discipline as satisfactory, and the health of ! t!i" convicts good. I invite your attention to the I An embarraseing diffieulty has avisen in the administration of impriaonment wliich demanda vour attcntion. A Toman was convicted In , the Superior Conrt of tbc city of Grand Rápida of the crime of arson, and enntenced to the State prieon for the term of her uatural life. The prison haring 110 suitablo department for , tlie reception of femalo convicta I conferred with the authorities of the Detroit House of Correction with a view of commuting the sentonce to impriaonment in tbat institution this having been the conree proviouely pursued in cases of j i ornen similarly eentenced. To my aurprise i I the management of the establishment declined i to roccive lier, and arrangenients had to be made for her temporary aecommodation in the jail of Jackson county. She has remained there for Beren! months vmder circumstances of ineonvonience not tending to the improvemeut of her moráis nor to socuring that reatraint and labor contemplated bv her sentence. Whpn the transfer of feinaie convicta commenced from the Stilte prison to the Detroit House of Correction, it seems to have been the i nnderstandiug that thereaftor none of this class of convicta were to bo kept in the prison, as no arrangement was provided for koeping thom there. It was evidently contemplated that all , (■f tliem wotüd be sent to the House of ] tion, and suoh haH boon the proceediog nutil the action to whieh I havo referred. If the managers of the Detroit establishment may at their election refuse adinission to female prisoners, then it is clear that some othor provisión must be made for such offendeiu In this conuection I may add that the management claim that the i State ehould pfty board for all the fuñíalo I victs transferred from the .prison, numboring i some thirty-two. I am advised that the I fer of these prisoners was at the solicitation of ■ the authorities of the House of Correction, and ! that tho suggestion of pay for keeping them is j of very recent origin. Tho whole number of convicta in the nrisons ! of the State, Sept 80, 1878, was 1,51!), of whom only 1 154 were females. While this showing ia greatly to the credit of the aex, it mercases rather than lessecs the obligations of the State te see that prisoners of this class are well and humanqly cared for. I submit the matter to you, eo that action may be taken to j dy the difficulty suggested as speedüv as Í ble. STVTE HOUSE OF C0KRE0TION. The State House of Correction was opened for the reception of inmates on the 15th day of August, 1877. The entire building with the ex ception of one wing of oells is complete, and i ! the inelosing wali construeted. The work apI peara to be well dono and the buildings admirably adapted for the purposes contemplated in their ereotion. Tlie total cost of the I tion thus f ar is $256,029.17. The Building! Commiseionera aeem to have discharged their dtities faithfullv and with fldelity to the ! lic interests. The whole number of prisoners np u una mcllKiiug iQo ooit. a.j of September last was 4S4, of whom 131 had been transferred from the State prison I at ítteksou, and .'Í5í roeeived by sentence of ! court. The wnole number of prisoners in the institution on said 80th day of September, 1878, was 2:3:!. The whole expense of maintaining the inetitution from the opening thfireof untii the 30th day of September last was J58.443.52, ! and the ear'nings $5,892.59, leaving an excess of j expenditures of 952,450.93. A considerable portion of the work on the buildings in piogress . of constniction duriug the last year, as well as J a large amount of grading on the prison ; grounds, has been done with the labor of the prisoners. No favorable opportunity for ' tracting the labor of the men has offered until ' recently, when an arrangement was closed to j place 100 to 200 of them on permanent, paying j work from Jan. 1 , 1879. The managers ' aak a special appropriation of $8,184,80 for certain furnisliing purposes deteiled in their report. Thev furtner eolicit the privilege of using $5,000 of tiie appropriations heretofore made for the purpose of purehasing land adjacent to the institution. PAEDONS. The whole number of persons discharged from the prisons of the State by pardon wi hin the last two years was forty-five. The number of commutations for the same period was thrce. j Of the pardoned convic a, two had been j victed of murder, ono of whom was releaaed ] becauae evidence devoloped after the trial j aeemod to estabh'sh innocence, and the other on i the representation of officials that he was insane when the crime was committed, a' d had continued so dtiring the whole term of imprison[ ment In the latter case, although assured that ; I the period of violenco had long passed, and the I insanity assumed a harmless type, I required I his friauds to bind themselves to care for hún during life in such manner as to prevent his doing further hann. The whole number of pardons granted in 18C9 was l(i ; in 1870, 16; in 1871, 26; in 1872, 32; in 1873, 37; in 1874, 30; in i 1875, 33; in 1876, 20; in 1877, 1(1; and in 1878, i 29. From this statement it will be I ceived that the exercise of the pardoniug ; I power has been loss frequent under my admjnistration than formerly, and the differenco will bo the more apparent I when it is remembered that the number of convicts in the prisons within either of the last two years considerably exceeds the number imprisoned in any other year of the series. In thus reducing the exercise of the pardoning power I have boen largely govemed by the con! sideration that the enactment of the Logislature j of 1875, known as the "good time law," places , it within the power of a convict, by diligence ! and good behavior, to himself greatly lessen his term of itopriaonmout. The aliowauce of timo j I under this law for such conduct rauges on a ! gradual scale, inerèasmg from two months for the first year to six mouths for the twei.tieth year. It puts a oonriot'8 release measurably in nis own hands, and is itself a liberal grani of pardon. It has worked well in practice, Btinm lating the convicts to conduct themselves in an obeuent and orderly mauner, and bas thus proved of valuable aid in the discipline of the brisons.; I am further of the conviction that the j too frequent exercise of extcutive clemency tends to defeat the ends of justice, to render j punishment for crime uncertain, and to make ! prisoners reatless and uneasy. I have, therefore, limited it to fewcr cases than formorly, and, beforo granting it, have recjuired a notice of the application to bo pubhshed. The appeals and importunities for pardons are numerous. Four out of every five, on examination, are declined. I have endeavored to confine thoso granted to casos whero the conviction was errqneous, the sentence unusually severo, or the circumatances of such a character that both justice and mercy seemed to require my intoi-position. In most every instance the action has boen taken with the approval of the Judge who imposed the penalty. That ejrors will limes oecur in tlie dotermination f such cases s certain; but they would be fewer if complainants, prosecutors and intluential citizens, j clamorous to get a criminal in prison, were not equallv clamorons in a short tune to get hitn out. KEFOEM SCHOOI.. The üeform School Had within its charge on Sept 30 last 327 boys. This ia au increaseof 65 over hist year, and 85 over 187(5. The superintcudenco of the school sceuis to havo been eareful and judicious, and the management good Tho escapes have teen few, although the removal of bars and bolta make the opportunities many. The boys have been orgamzed into a military compa'ny and furnished by the State with arms and accouterments. lliey diill regularly and well, enjoying it with a keen relisli. The Board of Control estímate the ordinary expenses for the coming two years at $38,150 per year. Thev alno Mt a special appropriation of 127,5X7.51, the items of which will be found in their report. BEPORMATORY FOR OIRLS. The subject of a refomiatory for girls, to be placed exclusivoly under the dïrection and control of women, has eugaged the public atteution. Tho auccess of similar institutions founded in other States has created a convictiou tban onc might be established to good advantage here. That it would bo uneful in sja,ving inatiy girlM who havo started on vicions liourses from Uves of vico and immoralitv I omI not doubt. l II' yon eliftll be batwüed tliat the nmnber of dissolute girls in the State of a criminal tendoncy is, or is likely to be, sufficiont to makc such an institution a necesaity, then stops toward tho undertakisg would seem wise. I doubt, howover, the policy of creatiug seh such ootablishment with tho design Of makiug it partly a refnge for indigcn! or tïnftut girls who íiave no criminal proclivities. Exponeneo shows tliat institutions are not always the bost places for the training of yonng persons. The tendency is to destrpyself-reliiBee andself-help elementa of character nece-eary to sticoess in Iife. Bosides, the mixing of thesp elasstís with the depraTed tind vieidus would serve to corrupt them and ïvsult in more harm than good. It is for you to eonsidor the subject in all its boariugs, and, wiiile carefully avoiding any needless mulUphcatdon of State institutiona, to ïnake such provisión as shall bo found aotually neoeesuy. FISH CULTUUR A largo immber of flah have boen hatched and trauspianted in the dlnVrent Water of the Stato through the agency of the fish-hatching establishmenta tn Detroit and Fokagou. The Comirnssioner:? claim that tbr wuiK lmo pvoved a anccesa The protection of nsh is an Important matter, and earnest exertions shonld be made to secure through Congrees a uniform regulation to prevent tho dostruotion whieh seems likely if pursued to wholly clear many of our waters of tuis clioico artiele of food. STATE PUBLIC SCHOOL. The'Stato Public School is a cbarity peculiar to Michigan. In no other State ia thêre an institution liko it that I am aware of. It aims to S re vent pauperism and crime by romoviug chilren f rom the corruptingand contaminating as8ociations of the poor-house and placing theui whero they may be preparad for good holnes and useful'lives. Tho whole number of children in the school on the 30th day of September last was 313. The cuiTent expenses for 1877 were $30,937.7!), and for 1878, 33,03.04. The per-capita cost for each child during the last year was $81. (1. The school has been run within the appropriations, and apparently in a prudent and caroful mauner. The boird asks an appropriation of $75,000 for current expenses for the erjsuing two years, with an addition of $10,100 for sunury items specifiod in the report It also asks authonty to buy some sixty acres of land for pasturago and other purposes, and suggesta that provisiou be made for the employmont by tho institution of a risiting agent, whose duty it shall be to seek out homeR for the ohildren and otherwise look after thoir interest. The further suggestion is made that quite a number of the children suffer from chronic disease and requirti medical treatment or Burgical aid, and that measures should be ta,ken to have it furniahed at the State Hospital at Ann Arbor. MICHIGAN ASYIATM. During the biennial period juttt passed the Asylnm for the Insane at Kalamazoo has proviciccl treatment for 1,133 patients. The daily average for the same time has been 645. In August last 222 were transferrod to the Eastern Asyium. This transifer relieved the institution f röm the crowded condition under which it had been laboring for a long time previous. The whole number of patiënte on tho lst day of October last was 497. The roceipts from all sourees during the two years have been $303,39463, and the disbursements $298,400.38, loavin the treasury, Sept. 30, $2,245.04. Dr. E. H. Van Deusen, who has faithfnlly devoted many of the best years of his Iife to the management of the asylum, has resigned tlie place of Medical Superintendent, and bas been succeeded by Dr. George R. Palmer, who has served for inany years as an assistant, Some time since an action for falseimprisomnent was brought against the Superintendent ot' tliia asyium by a person who had been taken and ke'pt for a time in the institution by the direction of one of the Superintendonts haviug j charge of the poor in a county of the .Stato. The case involves important questions pertaining to the determinatiou of hinacy, the character of patients entitlod lo bo admitted to the iieylum, and the forms requiBite to warrant thèir detontion. It is now pending in tho Supreme Court, and its decisión may make some revisión of the law in this regard a necessity. EASTERN ASYLUM. pleted. It is substantially binlt, and pleasanüy located noar the city of Pontiac, and has capacity for 400 lunática It was eonstmeted at a cost af $448,401. "n, Mul its arrangements and equipments are such m to furnish the most approvwl means aiul appliances for the treatment of persons afflicted with the terrible disease of insanitv The building reflecte credit upon the Commissioners and the Superintendent who have had its conatruction in charge. I constituted the Commissioners, with the additien of ex-Gov. Baklwin, trustees for the managemont of the asylum, and they selected Dr. Honry M. Hurd, of Kalamazoo, as Medical Superintendent. It was opened for the reception of patients on the lst day of August last, and has received by transfer from Ivalamazoo 222, and from other eources 91 inmates. With its wellarranged conveniences, and its score of skiDed physicians, the institution must aocomplish good results. The Board of Trustees ask an appropriation for 1X79 and 1880 aggregating 85i,:5:!9.42, full details of which may be found in their report. EDU CATIÓN. The Superintendent of Public Instruction has funüshed me with the following SCHOOL STATISTICS: l ikt7. on. No. of children betweenö and 2U yrars oL age.... -iH,444 Í74,9UO So. of children enrolled lu public schools .'57,139 357,845 Percentage of attendance on enrollment .76! .61 Approximate No. not at[ tending auy school 103,347 108,175 WTiole No. of flcliool di6tricts .VU? ,0l No. of gradecl schools... WB ,11(1 SYliole No. of schoolhouses 6,078 6,129 Whole No. of teacherB employed 13,001 13,378 rotal cost of instruction (teachers' wages) $1,894,900.80 $1,774,013.72 lotal cost for all public Bchools 3,179,976.00 J!.98,193.20 INSTITUTE ITEMS. I 77. j Ih787 N'o. oL teachers' institntcs hela. 19J 47 rotal enrollment at teachers' in-; stitutea i 744 2,982 lotal expense for intitntes $l,946.6;ij$5, 460.63 Ymount of county-iustitnte fundí expended 441.! 3,915,03 Aid from State treasnry to iiiKti-i tutes j 1.50Ü.73! 1 .Sir.00 It will be perceived that we pay most liberalIv for educatiou, and vet with oür great mmiincence we fail to bring all our children under tin advautage of instruction, eveu in tho lower branches of learning. A largo number att-nd school for only a brief ]eriod, whilo not a few are growing up without any Hchooling at all. TIk; i'iid Bonght to be attained is the instruction of eyery child of the Stato in the elemeutary Btudies, and succesH will not be compl! to until this ia an accomplishcd result. Whilê our system of teaching is in the main excellent, thonghtful obsei-vers declare tbat it is wanting in thoroTighness. Childreu are pushed too rápidly, and, as a consequence, acquirements are often superficial. Moro of our national and Ptato history, it seems to me, might be taught tö advantage. Tlie latter abounds in romantic and instructivo events that eyery citizen of Michigan should be famüiur with. The early explörations of the volatile French traders, as they skirted the great laken in their light canoea; the zeal of Marquette and the Jesuit fathers in their efforts to convert the Indiana; the career of Pontiac and of Tecumseh, thoso greatest of sa vage chieftains; tlie struggle between France and England for the control of our territory; the war of 1812, with the svtrrender of Huil; the massacre at the river Raisin, and tho Bucoessfal (ampaigns of Gen. Harrison, as well aa the btrugglca and triumphs of our later pioneers, furuish frequent instanoes of marked endurance, bravery and patriotism, worthy of study and remembrance. INSTTrUTION FOR THE DEAF AND UT Ml!. The inetitation for edueating the deaf and dumb and the blind contaiDed on the .'Oth day of September last pupils, of whom - - were blind and tho rernainder mutefl. I am gratified to inform you that, whüe the general tone and condition of the institution has improved, ita financial ahowing indicates that its resources havo been carufully hnsbanded. It comes before you with no delinquency, .bilt for the ftrst time in itH history with an overolus, to be covered back foto TO fireasury. Tilo Trustees seek an appropriation of $81,980 for i'urrent expenses for tlie two years to OOBje, #8,800 for eertain DBOtaaanr repairs and improvcmonts, the total of which ia noueas than the amount appropriated two years ago. I think the sraii dosired is not above the wants of the inntiration and should lm granted. The Trustees likewiso reconnnend an appropriation of $10,000 for coustructing on tho premíeos a separate building for the ubü of the blind. MICinoAN UNIVEKSITY. The üniversity ia the oldest and foreraost educational institution in Michigan. It haa history long and iutimately identilied with tl-.o sa of .the State. Nor a few of its professors have been eminent as authors and scholars. it jjfv earolled and duoated a great numbor of mon of iufluence and mark. It has been progressive Jn its tondcncics, and juatly bolds high rank throughout the l&ud. Like all educationat Institutlons, It haB had its strugglos and ite trials, btit atill it haa boen to tw a eource of growth, laïgoly drawing to our midst persons of culture and wealth. We rejoieo in its achievooieiits, and have a deep interest in all that concerns itn welfare. While its endowrnent is conaidorablo., it is ndt suftltiient to carry on ita worlt without aid.from the Legislatura. í trust, therofdre, that it may receivo appropriations, not lavish, but adequate to its actual neods. AGIilCULTURAL COLLEOE. Tlie Agricultural Collego grows in favor. It has become more thoroughly idontified with the farniing interests of the State, and stands on a botter footing than over bifore. Th whole ïmmber of studonts in atteudance during the lasl year was 239, and the gradu'ates, thirty-three. The managers aak an appropriation for curreut exfecsea of $0,271.88 for oach of the two yravn 879 and 1880, and a special appropriation of $15,9S.;)2 for each of the Baid twojp!!. buildings, improvéinenta and extraordmary ex-, n ruit ativU'iiifnt or w lileli will be found in their report. ïhcy further sulicit au appropriauon of tlSSOO for the construction of a new hall, with a view to the adniisaiou of feniales and tho co-education of the sexos at the college, the reasons for whloh will be found duly assigned. STATE NORMAL SCHOOL. The State Normal School continuos its uaeful work of training teachers for tho common schools. Tho wholo number of students in attendance In 1877 Was 64; and in 187K, XIN. The number gvaduated in botii years, 1S4. The estimated eurrent expenses for the payment of eight professors and four teachers, with janitor. for each of the years 1879 and 1880, is $18,795. and for incidental expenses, $5,905. The interest on tho ondowment fund is estimated at $4,200, and tho receipts from tuttion and for diplomas at $1,800, leaviug an appropriation of $18,300 for oach of said years necessary to meet the running expenses oí the school. Tho amount asked is about the same au has lieretofore been allowed. The last Legislature appropriated $30,000 for the eonstruction of an additional building. This bas been put up at a cost, ineluding architect' chargos and building supervisión, of Í327lltkBO. In additlonto this, steam-hertting apparatua has heen purchased to the amount of $3,990, tho old building remodeled, and a tower partly bnllt in eonnection therewith at a cost of $7,241.89, making a total expenditure of $43,347.18. Of ;this snm, 30,000 was paid by tho appropriatióu, $2,105.50 by contributions of citizeim of Ypsilanti toward the eonstruction of the tower, and the remainder, $11,241.38, from savings in the cnrrent-expense fund of the school aecumulated during the last fif teen years, lcaviug no deficiency to bc made up by appropriation from the Legislature. The board ask a special appropriation of $15,550 to bo expended in f urnishing the tower, providing steamheating apparatus for the old building, grading grounda, purchsing new furnitnre, and various other items which will be laid before you for your consideration and scrutiny. EAIlJiOABS. We have forty corporations owning or operating railroads. They represent a railroad mileage of 5,907 miles, of wliich 8,888 milos are now entirely within tne territoríal limits of this State. This line of railway luis been constructed almost wholly in the last forty years. At the eloso of the year 1888 wc had, of completod ro;ul, 63 miles; in 184S we had 320 miles; in 1858 we had 71)3 milos; in 1868 we had 1,124 miles ; while now we have ae statod 3,539 milos. There was eonatructed ici the first five years of the last decade, from 1808 to 1874, 2,128 miles, or nearly two-tüirds of oui' entire railroad mile' age. During tho past five years there have been built and put in oporation only 287 tnttea. oï wlüch 44 were built in 1877, and 84 in 1878. The companies that reported officially for the year 1877 ahow an aggregate liabüiry of funeïed and unfunded debt of "$107,271,421. (2, with an aggregate capital stock of $145,527,661.76, or a total of stock and debt of $312,799.083.41. Ihave no accurate data from which to [ determine the precise amonnt of this capital i sumed that it would bear its relative proportion to the whole, it would then bo about $187,000,000. This immense amount of capital engaged in the transportation of passengei's and i chandise gi-eatly to the wealth of the Btate i and to tho corivenience of its cilizens, and ia entitlod to your fostering care and protectiqn. It has been invested under rights and ! ileges granted by your predecessors and should not be unjustly or unnecessarily interfercd with. But in the exercise of your control it is alike ; your duty to see that the interests of the public are protected and that such capital is restrained I from any abuse of - its franchises or infringement on the rights öt others. The stoekholder and the bondholder, the producer and the shipper, are equally ontitled toyour protootion. We have no cause of complaiut in regard to the cost of transporting passengere or freight. Local ratea have been as iow if not lower than in our I neighboring States. But as oné of the States I over whose lines of railroad the immense productions of the West are tranaported to the seaboard, in the obtainiDg of which üiere bas been and atill continúes to be very activo competirion by railroad compauios, thèro is danger that thi-ough freight majr be carried at a loss, and that snch loss will be added to the local ratea and thus increase the burdens of our own producors. I recommend this subject for your thoughtful consideration, trusting if you take action thoreon it will only be aftor mature conaideration and with careful regard for the rights of all. The railroad corporations in the State have been organized as common carriors with a viow of providing equal facilities to all, without discrimination in favor of any. This right can ouly be maiotained by the eorporations themsclves, and their agents and servante, at all times avoiding the business of purchasing articles for transportation over thoir own roads, and refraimng from giving to any individual special privileges over others either in the form of reduced ratos or rebate, I suggest ■whether it is not desirable tq prohibit by law any agent or servant of a railroad company from buying or selling auy articles of merenandiae aa a business in competition with others to be trausported over its road, and alaó to provide against diaci imination in favor of individúala. During the last few years there bas been a difflculty in qnf orcing the law in regard to fencing upon railroads operated by receivers or losBees. Our laws evidently never i plated that individuals would be permitted to opérate railroads in this State, and therefore imposed no ponalties upon sueh persons, while they do upon corpora tions. In many cases remedy by penalty is inadequate to reaeh the object desired, corporations or persons operating the roada bein" entirely irresponsible. I would suggest whether it would not be well to amond the law in this regard so as to make it a eondition precedent to tho contimied operation of a road that the fences through improved and cultivatod lands should be constructed within a given time, and thqreafter maintained, and that ] all persons operating raiiroada should be made liable to the same penalty. The office of Oommissionor of Eailroads was establiöhed for the purposo, among other things, of arriving at an authentic report of the transactione of railroad corporations, with a view to legislation in regard to their righta and the intoresta and protection of the public. Tbis systein has also been adopted in mauy of our sister Stiltes, and is, without doubt, of very great value in euforcing tho laws against such corporations. The returns from tho companies to tho office by the Commisaiouer of ltailroade, and the subjecfjs on which such returns shall be made, are quite spocifically deflued in outlaw. But, as quite a number of raili'oads form parts of contiuuous linea in other States, it has been thought desirable to adopt a uniform system of returns f rom the railroad companies for each of such States; and, as the authonticity and value of such returns must depend upoñ the system of book keeping adopted by the several companies, it has alao been thought desirable to prescribe a uniform system of book-keoring for railroad eompanies. A meeting for consultation on this subject was held at Columbtis, ühio, on the 12th of November last, at which ten States were repréaented, and a committee was appointod to recommend a syatein of accounts and returns, and to report at an adjourned meeting to be held in June next I cali your atténtion to this aetion for the purpose of sugg that our law in this regard mav bc ao far mqdified as to authorize the Commiasioner i:( Kailroads to carry out the action of thia coovention. In accordanee with the direcHon of the Legislaturo of 1877, procoodings have been taken, and are now pending, to test the claim of the State against the Lake Shore and Michigan Southern ltailway Company for the amount of certain apocific 'taxes claimed to be due and unpaid. MACKINAO AND MARQUETTE KATLWAY. The Legislara re of Í 875, impresaed with the importance of more intimately connecting by ïiiilway commuuication tbc Upper Poninsula of the State with the Lower, reservod from aalc 1,326,965 acres of land to bo giveu to any company who might poooeod and construct, within a specified timo, a continuous line of railroad from the Straits of Mackiuac tqthe city of Marquet.te. TTjia vahjahlu land graut was deemed sufficiont BtlCötfrftgefflBnt to BOCUÍo tho cr)y completion of the pruposed railroad, nd would, witliout dgubt, have acoopl8h(t(l thi result had not the financial criéis practically suspended railroad building throughont tho Country. Atvarious timea responaible parties Beemëd about tö take huid of the enterpriso and push it, but by reason of tho ooimnorcial deprcaaion failert to do sd. ín May, 1870, the Boárd df Control dntorod into a oontrtct with the Marcjuctto, Sault Sto. Marie and Itatíkina Railrdad Company for tho eonstruction of thie rOad, hut po impedíate stops wero taken to build it. On the 14th day of May, 1877, the Legislatura furthor continuod thegrant and extended tho timo for tho oompletion oí tho road until December 31, 187Í). Last winter the company with which the contract was made claimed to have perfected au arrangement for securing means for the immodiate contrtruction of the road. lts agent, Dr. W. W. Laman, gave Most positivo tsanrauce that money had been negotiatt 1, and thaf, with the opening of uavigation, work would commeneo at various pointa on the lino, and be ntnd rapidly until the railröad was in f uil [..iiation. Tho board afforded evory facnnv ,uv-i„ , Kiwer to aid in the onterprise, and appointed nn. .'olm J. Bagloy and Hiram 1). Crqsby trustees to receive and disburse tho avails of any f'iledgen or sccurities made upon the railröad and anda to obtain means for tho building thereof. The prospect for the conatruction of the road soomed hopefnl, but aiuco, notwithatanding ropeated assuranoes have boen given that the work would bo immediately eommeneed, not a blow has been struck, and the board being now satisfiêd that the partios concerned have not the fonda requisite to build it, and that there Is no reaaonabte probability of thcir boing ablfl tö obtain moneys for that purpoae, have taken atopa j to declare the contract forfeited, and to placo I the land graut ao that it may be available to any other partioa who may contract to build tho road, The construction of thia rallroad is an nrgent j neceasity, demanded not onlv to facilítate trade Í with the rich miniug regions of the Upper Península, but to secure to our peoplo a fair ahare of the cqmmerco of that immense grainproduciDg aection, penetrated for hundreda of miles by the Northern I'aciflc Kailroad. It ia well ttndefstood thftt ttiia great line of railröad is yot to bé built eastward from Duluth j to the bonndary of Michigan, on the aouth i shore of Lake Superior. Now, with a short I extensión of the line projeeted f rom Mftckinac to Marquette, we shall be ablo to tap it and to j divert a largo portion of its travel and trade ; to thia State, and tlms open tho way for direct I intercourae with the vast extent of country it ia built to traverse. Communication between the Upper and I Lower Peninaula is now carried on for threefourths of the year by a circuitoua route i throngh three other States, diverting the traffle of an important aection of thia State elsewhere, and making it tributary to other interest. The construction of the Maeküiac and Marquette railröad would, in a great measure, reatore to ua thia trade, and bring the two penínsulas into nearer and moro intímate relations. But. important as the demand is for thia road. it is apparont that withholding the landa froni market in certain localities is retarding aettlement and preventing the devolopment of ; the country. Portions of the grant are heavily timberod and other parta of it are said to be valuable for agricultural and mineral purposos, and public interests aoem to require that i in some aectiona they ahould not bo kept from sale and aettlement, while at tho same timo there ia no reaaonable prospect that the purpose of the grant will bo aeeompliahed. I believe it wise policy to devote the lands sacrodly to the object contemplated, ano I would not vort them to other purposes. If, however, it ahall bo found necesaary to open aDy of tliem to sale, I recommend that it bc upon condltion that thuy he sold f or cash and that the pi'ooeeds be paid" into the treaaury and eet apart as a fuud to be applied in aid of the enterprise for which they were appropriated. 8A.VINGS BANKS. I renew the recommondation repeatedly made by my immediate predecessor for some further provisions similar to those in the National Jïilllliii'tf lJa Lop ilio moro oarofiil cvumination j ■ml Horutiny of the savinga banks of the State, i These banka hold large amounts of money, aud, so far aa I know, they have been pradently managed. But they are the offspring of the Legislature, and, in creating them, it fails in its dnty if it neglocts to guard the rights of depoaiïors, many of whom are laborera and ] perdona of moderate meana. llie rates of interest have been steadily decreasing for aome time past. An abundance of money can now be obtained on good aeenrity at 7 and 8 per cent. Eoal property in tho State j hat no uncertain value, and,tho probabilities are l that hereafter money will never command aa high ratea of interest aa it has heretofore. Aa I a result of this state of circumatances there aeema to be a demand for tho repeal of tbc provi?ion authorizing contracto to be made at ratea as high as 10 per cent With this accomplished, the uniform rato throughout the State wfluld be 7 per cent. : I.IBEABY. g The bound and unbound books on the shelves of the library number about 40,000 volumes. Of theae, some 5,000 have been obtained within i tho past two years through purchase, exenange or donation. The law department eontains.üie largost and best collection of law books in tho State, having tho American reporta complete and (he English nearly ao. Tlie Uürarian auggeate an appropriation of $5 000 for the next j two yf-.irs for the purchaso of booka. I think the appropriation shonld be what larger than heretoforej and that proviaion j ahould bo made for additional help, aa the preaent location will neceeaitate it I would also euggeat the propriety of having the Librarian keep an account of lost ör damaged books, as well aa having an invontory taken j yearly. INSUEANCE. The business f insurance, eonnected aa it ia i with nearly all our commercial and financial ! tranHactions,has beoome ene of great importancc. Th6 number of companies now authorized to ; traneact business in Michigan is 195. Of these 50 are incorporated undertho laweof this State, ; viz. : One lit'e insurance company, with aaeeta ' amounting to over $900,000, and riaka in forcé to theamount f 11,(541,000; two atock fire compauies, with au aggregate of $22,000, (XX) at riak ; and 47 farmera' mutual fire companiea, embracing about 57,000 membors and risks in force to the amount of $107,000,000. The atock fire companies of other States ; (102) and foreign Governments (15) now thorized number 117, and during the year ! 1877 wrote risks here to tho amount of over ! $l.fl,000,000. 'rom the year 1S70 to 1877, both inclusivo, the aggregate of buaineas done in this State by stock fire insurance conpaniea is as foüowH : Riste wri Men $1,21(1261 ,865.00 Pn minina recelved 13 071,744.00 Lossea incurred 9,847,689.00 liuring the aame period these companiea have paid into the State treaaury about 500,000 in taxea. In the year 1870 there were 56 life inaurance companies of other Htates doing business in this State. Thia number baa been roduced to 28. No considerable losa han fallen upon our people by reanon of the failure of lif inauranco companiea, except in the case of the Continental of New York. The nnmber of lift! j nsurance policiea now m force upon the live óf eitizena of this State is about 22,000, repreaenting insuranco to the amoxint of $42,000,000. During the eight years last past, covering the perioa of theexistenc of the Insurance Bureau, a largo number of botli life and fire insuranco companies have boen sent out of the State, or refused admittancu on account of inability to comply fully with our lawn. The aubsequont failure of many of theso concerna haa demonstratod that the Stato standard of aolvency cannot bo too rigidly maintained. During the pabt two years no failure has occurrcd among companies a-uthorizod in this State. They have auffered aomewhat in depreaaion of buainesa and in ahrinkage of values, I in coinmon with all other iinancial inatitutions, but there appeara no good reaaon for doul'ting their ability to fulfill contracta. Tho laws relaring to lifo, fire aud marine inHurance are believed to be adequate for tho protection of the people and the companiea, and noed no radical changes. It might be well to enact a law to more effectually punish insurance by uuauthoiized agents and companies. At the laat aession of the Legialaturo an act was l)a.el intending to regúlate the business of plate-gl&ss insuranco byplacing such ctinpanies imdcr tho sume requirements aa lifo companiea. Tho act ia quito indefinite and of doubtful constitutionality, and I recommend its repeal and the passage öf a more ripecific law regulatiiif; this kind of iuaurance. FIKES. Kindrod to the subject of insnrance is the groat dostruction of property annually by tiro. Some idea of this may be obtained from the fact that the fire insurance companies alone have paid out over $10,000,000 for losaos hl Michigan within the last eight years. According to tho most reliable data accessible, there were, during the year 1877, in thia country and Ganad, 10,468 firea, or oiie in nearly every flfty miuutea. The value of propertv destooyod by theeo fires amounted to nearly $ÏOO,000,iOO. Of that ram f48,000,000 wan paid' by inaurance companiea, and the remaiuder of the. Joes waa suatained By pi-overty-owirrs. 'Vw entire snra, however, was a total lonri to the wealtb of the coiiuiry. TUo tjtate of Michigan sutfored Josees by flre in 1877 of over $3.000,000, aböut onehalf of which foll upon the Insurance dompaniea. The balance, #1,500,000, may fairly bc considerod ae the net loss to tliis State each yoar butiro. Ma,ny of theso fire may ba attributed iudirectly to thp ontii'e absence or m n-enforceinent of building laws, and direetly to defectivo constnictlon. After all probable innocent causea are eliminatcd, the criminal records affirnl tliítt árson 13 not an infrequont agent in tho burniug of pröperty. Tilia clase of firen may besot to hide crime, gratify revengo, or to for'ce a Bale to insurance companies of overiiiHurcd property. This subject te an importent ono in view of the desirabili'y of saymg the wcalth of the State and suppressing crime. Within the last cight years. it appears from the reporta of the eevoral prosecnhng attorneys to the Attorney Genel'ltl, that tbe mimber of pesreons procecded againatin this State for various offonsea waa 47,824. Of these 313 Were charged wlth tbe crime of arson, butonly fortytwo were convicted and punished. It would acom that the laws are ampie for the punishment or tiuM crilüe, and H is uot apparent that thre ís any lack of zoal nn the part of prosecuting officers whon proper cómpialnra n made. I auggest whethcr the requirement of some examination and report by competent local officers into the canse of the flre, extent of tho loss, and amonnt of iusurance, wonld not furnish valnable Information, and. at the same time, tend to constitute a protection against such calamities. CHARITABLE AND HEALTH BOARDK. The Board for the Supervisión of Charitable InHtitniiniiH hos steadily puraued ita work, and I ref er you to its report for many excellent suggeations in regard to oursystcmof charitiesand orreotion. The reporta of the Board of Health havo attracted attention and contain valuable information in regard to the prevention of disease. It is to bo regretted that great delay oecurs in the preparatloa and publication of tho vital statistica. It would scem tluit they loso much of thoir value whcu brought out years after they are taken. THE RAILBOAD STRIKE AND TBE MILITARY. In July, 1877, a Spirit of violeñeo and disordor was inanifeHtal in some sections of the country which rosulted in sorious disturbanee, with the destructiön of many Uves and mlllioua of dollars' wnrth of property. Cotnblnations woro formeel, railroad depots, ivarehouses and shops Beized, freigtat and paaaenger trains eompelled to Btop running, and a large pa rt of thecarrying businoaa of the country for the timo being suspended. Having reliablo information that a similar danger was threatening the peace and good ordor of this State, I deemed it my duty to take prompt and energetic measurea to meet such emergency ahould it arise. I accordingly ordercd out the whole military forco of the State to be encamped whore they might rapidly bo made available in caae of need. To this cali the troops promptly responded, and the three rogimontH were quickly in the field ready for active duty. On the Lfith day of Julv a portion of the hands in the employ of the Michigan Central Kailroad Company at the eitv of Jackson atruck. and, compelliDg others to abandon work and join with them, proceeded to stop all trains running over such railway to or from said city. Dn being advised" of thia action the ofllcers of the railway immediately appealod to me demanding the protection of the State against thia imlawful and violent interfereuee with the company's property. Öeeming it my duty to use the military power only as a laat resort in aid of the civil authorities whon their efforts to restore . order had proved powerless, I at once placed mvself in communication with Hon. James O'Donnell, Mayor of the city, requesting him to keep me advised of the situation, and assuring him that I would direct the military to promptly and finnly support tho local authorities in maiutainiiig peace and the supremaey of the laws. I further issuert a proctaniation enjoining all persons to refrain from improperly and violentfy molesting or intorfering with the property of o"thers, and requiring local executive qfficere to be active and vigilaat in their respective localities for the maintenance of the public peace. I waa gnitlflecl in a short time to be assured by the Mayor of Jackson that the civil authoriües, aided by the citizens of the place, were doing all in their power to quiet the diaturbance and provide for the passage of trains, with a fair prospect that such result would be speedily at ained without reeort to the uso of military forco. I was subsequently adviaed that the parties engaged in the unlawf ui pro - ceedmgshad wholly relinquished their desigiis, and would no longer hinder the Corporation from the regular uso of its railway. The trouble waa ended fortunately without the destrnction of a clollar'a worth of property or the loss of life. In view of the excited atate of feeling that then prevailed among railroad operatives all over tho country consequent upon a reduction of wages, and of the fearful outbreaks that had taken placo elsewhere, the situation was oue of unusual gravity, and the dauger imminent. A single ill-judged movo tnigtat havo resulted in most fearful conseqnences. That we oscaped a groat diaaster is in my juctgment largely duo to the excellent course puraued by tho authoritiea and citizens of Jackson, to the prudent measures taken by the railroad officials to prevent a collision with the stokers, as well as to the near presence of the military giviug assurance that the full power of the State would be employed, if necessary, to prevent Tiolence and mamtain order. It is alao creditablc to the workingmen who engaged in tho strike that they spoedily took couusol of wisdom and abandoued thoir inconsiderate and unlawful proceedings. The military ment my thanlts for the alacrity with which they responded to my cali as well as for their excellent bearing and gqod couduct while on duty. Experience in tuis emergency demonstratea that we must rely chiefly iipon our State military to suppresa riits ör tumults arising in our midet. Tue policy of the General Government seems to be to discourage the employment of Federal troops in such cases until it is apparent that the State alone is unablo to overeóme the disturbance. In tho outbreak referred to, if we had been without a State force, and had been obliged to wait until a formal application could have been made on the President and responded to by Federal troops, the strike wonkl undoubtedly havo assumed much greater proportions. The United States mail, of which there was a large quantity on delayed traius, would have been longer detained; while the criminal and vicioua, who seem to have made such disturbanees an occasion for pillage and plunder, would have had greater opportunities to enable them to do damase. While not prepared to advise an increase of the military force, I do recommend the adoption of meaaures to add to its efficiency. A step in this direction has already been taken by the Military Board in exchanging the rlrearms horetofore used for the latest pattern of Sharp's breecfi-loading ïifles, with which all of the regimeuts are now equipped. This should be Bupplomented by the purchaae of haveraacks, blankots and overcoats to be stored with the Quartermaster General, and fumished to the troops, from time to time, for uso when required by the demands of the service. Companies should be obliged to have enrolled the maximum uuniber of able-bodied men, as thero are ahvaya some who cannot do duty at cali; they should have offleers of experience, hola regular meetings for drill, and be subject to frecment and careful iuspoction. ■Vith well-organized regiments of this charafter, dupportod by the superior Gatling gun recently procurad of the General Government on the amount standing to the credit of this State payablo in arms, we may utilize our State military so that we shall havo an efficiënt force always at command to assist tho civil authqritios in suppressing outbreaks and niaiutaining oï'der. The expense for the transportation, subsistenco and services of the troops thus called out dnring tho strike amounted in th aggregate to í:i'i,ai!Uw. The money in the military fund, owing to tho diversion of much of it by the LogWature in other directions, waa found wholly inadequate to meet these (Iemands ; consoquently a considerable portion of the expense incurred', includiug the payment of ofticers and men, had to be deferrod. Through the courtesy of the Auditor General and State rréasnrer, tho Military Board were ponnitted to realize an advanoe on tho appropriation, with whiüh they woroonablod to payotï the troops aud discharge auch of thoir indobtedness as could not wtil Be delayed. The whole nrm of the expense now outetanefmg and topaid is $1,75:3.42. Sjor pome timo past it seems to have been the pqlicy of the Legialature to trcucli UDon the military fuud auil apply portions of it to qb-. jeots other than tho legitímate expenso of maintalnlng a military force for active duty. A portion of the fund is now devoted to supporting, at Harper's Hospital and ia tho asylmn at Kalamazoo, inörm and insano soldiers enlito(l in the Union army in thia State during tho War of the Itebellion ; whilo anotlua portion ia resriNcd, umter a recontact of legislation, to pay claims of uon -coinuiissioiied officerg and musicians of the Fifth, Sixth and Scventh Kegimciits of Michigan Infanti-y for SerVicpB at the Camp of Instnictiim ut Fort Wayne in ifcKil. If wr are to maintuin an efficiënt military f oivo it i plain tbiit the funds approuriatcd tor tlio iiirpoae must not le divérted to otlacr ciiannels. Tl-c eübjectof chaiigtug tlio íaw so tlmt tho mean of sugli fnud shall not be as largely absorbed, for purposes not eontemplated by the original appropriation, is respectftllly euggested for your favorable consideration. DEPABTMENT CLERKS. I deem it ray duty to cali your attentien to the ntter want of uuifoVinity ín the syatem regulating tho employmont of clerks in the Heyeral departmcnts of {lie State Government TliO law i applicable to sorne of tlie State offices limit the mimber of clerks tliat may be employed thereln, ín othors the assent of tho Exccutívo or Homo board ia requisito to an increase of clerical forcé, while in ethers the chief of tho bnreau arts wholly lipón íüs own discretion and employs as n'iauy as he seos fit to. Tlie pcmition is a desirable one to many persona and is eagerly Bóuglrt 'iherestüt is that a great presemre is brought to bear in behalf of applicants upon the head of a dopartment havlng the matter wholly in bis own hands, which tends constantly to an enlargement of the forcé. The number of clerks ia the Auditor Genoral's ofiico ftt times during the yoar past has ranged aa high as ninety. I have tho beet of reason to believe that a smaller sorvico thoroughly systematized wottld have accomplished the same resulta. I recommend that provisión be made by law specifying the mimber of clerks iipl'.yod liy the head of each department, and provitTiiií; that the limit shall not be exceedod Bave ivith the consent and approval of the Board of Auditor?. EOXDS OF KTATE OFKÏCERS, Tho monevs and moneyed seeurities on deposit with tiie State Treasurer average daily more than a half a million of dollars in amount. Tho law próvidos that he shall give bond in the snm of $150,(100. It will be perceived that tliis limit is entirolv insufficient to cover even onethird of the whóle amount of moneys at any one time in his hands. I, therefore, recommend that the secnrity be increased. At certam seasons of the year a largo amotint of f nnds are paid into the offices of the Auditor General and the Commiseioner of the State Land Office. Sometimes this money comes in more rapidly than recelpts an be made to cover it into the treasury ; consequently quite largo sums remain for a brief period witk tliese oflicers. In view of dús fact I suggest for your considoration wheihor it i not advisable' to rcquirn from these officials bonds for tho faitb ful performance of their dnties, and for the payment of such moneys into tho treasury. STATE TAX LANDS. Tlie amount of this class of lands, L e. on which redemption bas expired and tho State acquired a title, remaining unsold at the close f tho sale in October, 1878, was 13,289,586.83; the imount tinsold at the close of the sale in 1877 was $1,8513,243.44, showing an increase of 48S,3S&89. The Bales during the year 1878, at the Auditor General's and oonnty Treasnrers' ofiicers, taken together, amonnted to $98,421, showing an increase of sales in Í 878 as compared with 1877 of $46,723.:. It will be seen that the State has acqnired a largo amount of lands of this character, and that they are constantly incroasing. Similar accumulations have occurred in former yeara and methods of relief have been devised by the Legislature. It is very important to the mterests of the State that some provisión be made for the dinposition of these lands. The number of acres of land held by the State September 30, 1878, was 2,737,0158.21. There has been sold during the two years past 302,200.81 acres. There has been collected in cash and not on account of trespasses on public lands, $8,854. 95, at an expense of $3,3C3.o'2. BONDS OF CEETAIN LOCALITIES. It has been brought to my knowlcdge that m some instances localities issuing bonds have failed to keep a record of the same and tiat confusión has resulted thereby. In some States all local bonds are required to be registered with a designatod State officor before they are delivered. This procecding is said to givethem bettcr standing and to thus facilitóte their sale. FEES OF OFFICEIiS. It is complained that orüeers who are compensated wbolly or partly by fses are, in many mstances, paid exorbitant rates, and that frequently their charges are excessive and above tb ( Mniit presoribed by luw. It is also alleged that criminal proceedings for trivial offenses are sometimes instituted and carried ou even to imprisonment more to enable oflicers to obtain fees than to subserve the ends of justioe. While every official should have a fair allowance for his services, it is neither just nor procer that extravagant perquisites should be"gin to ihqse whoso empioyment is rnerely clerical, requiring neither extrordinary skill, learning, or ability. The subject is worthy of your careful inquiry. ANTTETAM NATIONAL CEMETEKY. The State of Maryland now holds the title the Antietam National Ccmetery, as Trustee the Hoveral States which contnbuted toward ita establishment. The Board of Trustees have incurred indebtednesB, and by act of Congress of March 2, 1877, the Secretary of War isauthorized to pay the same when tho legal title to the Íroperty shall be transferred to and vested ín he United States. This State is one of the partios in interest, and, as provisión is made by the General Government for the proper care of all its cemeteries, I recommend that you assont to the transfer, and will heroafter submit a bilí for that purposo, prepared by the War Department BT. MABY'8 FALLS SHTP CANAL. The 23d day of June last marks a quarter of a century since gro.und was broken for the construction of the St. Mary's Falls ship canal. The tonnage passing through it has increased from 10Ü.2ÍXÍ tous in 1&", to 1,439,215 tona in 18"7, and 1,687.186 tons in IS19. lv gross yearly revenues during the same me havo multiplied by ten, being $44,351.43 in 1877, and $40,437 ' in 1878. More than 5,000 vesscls, many of them of large tonnage, have passod its locks in the two seasons referred to, making an average passage of one boat every two hours and ton minutes during the time of nayigation. The General Government is uow building additional locks for the purpose of enlarging and inereaaiug the eapjcity of the canal, and sneh progress is being made that the work promises to be fully completed within the next two years. The Legislature of 1809, by joint resolution, authorized tlie Board of Control to transfer the canal to the United States on the payment of all outstauding indebtedness incurred by the State in the construction or management tnereof. The indebtedness of the canal, which the State treasury is pledged to pay, is $4(i,000, and the amount standing to its credit on the books of the Treasurer is $74,533.12. The canal debt is thus fully provided for, and will bo extinguished as rapidly as it falls due, and before, ïf the bonds can be purchased. lts finanoial condition, thereforo, í.m such that It may be at any timo transforred to tho United States. A number of necessary repairs and excellent improvements have been mado by the present Superintendent, John Spaldiug', and an additional now set of gatea have been pureliased and placed by direction of tlie board. Further noeded repairs are now being mado, and the probabilities are that, owiug tí) decayed sills and dmnaged piers, the expenditure for this purpose will somewliat increase during the next two years. On coming into office I found the clerk of the canal had absconded charged with the embezzlementof $1,114 77 of the canal fnnds. Sinee then he has been arrested, tried and acquitted. I f urther found the accounts in an unsatisf actory condition, and tho Superintendent, from his own showing, a defanltor to the amount of $877.31, to recover whieh sum, proceedings are now pending agaiust him and lus bail. This conditiou of affairs led the Legislature to relieve tho Huperinterdent of the canal from the control and management of its flnances, and to créate for that purpose an offleer küown as Collector of Tolls. The change has proved a desirable one, as the dutios of the Superintendent in the immediate supervisión of the canal demand bis whole attention, whilo tho accounts in the respective offices prove a check upon eaoh other. In connection with his annual report for 1877, the Collector, William Chandler, bas prepared and published au interesting and valuable history of the canal. Tlio projection and construction of this canal is eminently due to the sagacity and exertions of the early settlors of Michigan. They know that the extensivo coast of Lake Rnpenor possessed mineral and other treasures of great valué, and, with almost prophetic visión, they BSemed to realize tho importantie of tho immense commerce and trade which bas since been dsveloped in this región. Through dofeats, delays and discoaragements they steadily persevered in nrgiug the entBrpnse until they ivero effective in seeuring it.-i oommencement and complotion. It would most fittingly crown their achievement if tliis important channel, opening complete water communication betonen tin: gieateat of inland lakes and the ooean, wero made forever free to tlie buwfe of all vessels navigating these waters. If this were accomplished, and reciprocal fa cilities aflordod us by the Dominion of Canada for tnmsportation through tho Weiland canal, the enture passage fvom the great lake to tho ocian wonld be imtninmieled by tolls, and the commarciiü and social relations of prosperous communities, spoaking the same lauguago and baring intorests in conimon, improved and Btrengihened TilE 1.1CENSE LAW. The whole amount of taxes assessed throughout the State nnder the Liquor Tax law for the yoar 1877 was $420,100.18. 01 this amount 887,838.88 vu colK'cted and $;i2,82i.2ü reDAftina uncoilected. üonipletíí return have not yet bían ipi the Auditor General for the past year, and conscqueiitly I am not able to present the showing thercfor. It will be neen that quite a large percentage of the tax ia nirpaid and lost. This is In some respecta dne to officors neglecting to promptly presa collection, as ivell as to the fact that some parties have been enabled to escape pavmunt through the local courts by reason of some technical defecte in tho assessments. If ttdg law is to rerhain it should be ao amended as to provide that payment of the tax Bhall bn a oondition precedent to the right to sell at all, with il penalty impoeed for any sale in violation of suci provisión. It is unequal and unjunt, among the partios telling, to permit óne to escapo a tax that the ottaer ii obligod to pay. I am adviaed that the law has had the effect to somewhat reduco the number of placo wbero Uquor is sold. BXECUT1VE MANSION. My experience as Execntive of the State satis fles me that tho Govornor onght to reside at the capital. Hifl presence upon many occasions would facilítate business. Notv that the Stato offices, civil and military, are removed hore, the neccrMity is greator than ever. "With tho small salary affixod to the office the Govrrnor slioulrt not be expected to come herc and provide lumself with a home. Tho Htato should fnrniKli a residence comportiiif; with tlie charaoter of the Capítol, in which the'Executive should live during his term of office. I rocommfind that the block of lots upou wiich the oUl ('apitoi stands be subdivided, and with the buildings thfireon be sold by the CommixHioncr of tho Land Office, npon terms to be flxed by the öovornor, tato Trcasurer and himsolf, aiid that a portion of the proceods mdicicnt for tbc porpoae be appöed to the erection of weidence for the Govümor. I bespeak this not for myself but for my Biiccessors. CONCLUSIÓN. In eonchiding this communication, let mo say tho responsibihties reatinp upon you are of no liL'ht character. For a limited time, tinhject only to Che reetrictione of the Federal and Htatt' constitutions, with you resta tbc ole power of legislattng for the people of tJüa oommonwealtb, The righte of peraon and property, the most important interesta affectmg socifty, a well as tho honor and welfare of the State, are ma Ki-eat measure committed to you. mu!1 die State has had a remarkable growth, and 1 strong in population and productions, it is yet but in tho early periods of iti devélöpment We have foresta untouchcd, mines unilisturbed, aad thousands upiHi thousande of acres waiting only for tho tiller to transform them iuto harvest-ljearinB fields. If your legislation shall contribute to foster and further unfold theso intereats; if it shall promote morality, cherish virtue, encourage education, check dieorganizing tendencies, and maintain the bleesings of peace and unión, you vdll have accomplished the work dolegateu to yon in a mauner worthy of the gratituoe of cori8tituents. Chas. M. Ckoswell.


Old News
Michigan Argus