Sturgis advertiser. (Sturgis, Dakota [S.D.]) 1887-1???, 1891-01-22
MEILETTES less 4 tSE.
GOVERNORS ADVICE TO THE
SECOND GENERAL ASSEMBLY.


The Need Of Reducing the Cost of Aainte-
nance OF State Institutions Dealt with at
Length The Public school sy stem Con-
troll Of Corporations- Other subjects.
After the senate had adjourned 1t met
with the house and the message of Gov.
Arthur G. Mellette was presented BY
him. The governor was In his best form
and spoke with force and precision, the
follosving being summary of the adj
dress:
Tho state Finances.
The first and most important subject for
your consideration Is the public finances.
The states financial condition could
scarcely be more embarrassing, and her
revenue system could scarcely be worse.
No greater service could be rendered the
state by this body than the adoption Of a
systematic, comprehensive and efficient
code OF revenue laws, and rigidly restrict
ing current expenditures by adequate PEN
alties to the revenues thus produced.
& Without such legislation financial disaster
is sure to overtake the state to the
irreparable injury OF her credit, her
institutions and her business interests
Members from counties containing public
institutions and who may consider them-
selves agents to procure large appropri-
&blUHS III ZIG lnlGTGSJOI BHelF constituencies
rather than in the interest of the state,
should consider whether they would not
prefer warrant for ST. worth 100 cents, to
a warrant for SO, worth 100 cents, in the
market, remembering that the latter con :
dition means final ram TO the state and her
institutions. T..ere is only one safe policy
for the state or the individual, and that is
TO live within her income. 1t is bad
enough for an individual to mortgage HIS
farm for the entire value of his improve
ments, and he surely cannot after that af-
ford to borrow for the maintenance Of his
household. The state having built her pub
lie Institutions entirely on borrowed cap
ita1, must at least maintain them out of the
current revenues.
There are now outstanding against the
state about SAC, 900 in warrants Endorsed by
the treasurer, "Not paid for want of funds, =
end thence bearing per cent. interest,
which are already subject to a heavy dis
count in the market, and but for prompt
measures on your part to prevent it their
amount will rapidly increase and their
value decline correspondingly. This condi-
ton exists after final resort to borrowing an
additional 100000 during the past year
and increasing the public Indebtedness to
the maximum limit under the constitution.
1t Is impossible longer to dodge the issue; it
is now retrenchment or Disaster
The governor then gives q statement
of the receipts and disbursements of the
state from November g. 1889, to November
30. 1890, the receipts showing a total of
$500,542.70. He then said:
sit Is apparent at glance that the re-
ceipts in the future will fall far short of
this.
.sThe first item of $50. 29O.07 received from
the territorial treasurer is lost to the future
revenue.
SIT is known that the receipts from coun-
ties were produced under the territorial
AZ
limits the annual state tax to mills on
the dollar. This condition in the future
will reduce the revenue from this source
33h per cent, or SIT, 108.87. Again, the
railroad tax was produced under the terri
torial law, which placed 334 per cent of
the entire amount collected In the general
fund Of the state, while under the constitu-
valuation of the railroads can be paid into
the state treasury. Estimating the as
sessed valuation of railroads within the
state for the next two years at 10000, 000,
which Is at the rate of over 1000 per mile
Of road and equipments, and is perhaps as
high a valuation as can be expected, being
more than double the tax procured by 3
per cent. tax on their gross earnings under
the late territorial statute, 2-mill tax
will produce $40, 900 to the state revenue
from this source, being further reduction
In the above receipts on account of rail-
EOdub lEOLH buG dLuOuub 5noWh III thO bdDIG
OF 81, TS6.05.
This statement, showing receipt of $780,
600 from issue of bonds, by which the pub
lie debt was increased TO the limit allowed
by the constitution, must be deducted from
future revenues, as must also the bond
premiums, the two making the further re-
duction of S119, 612. so. These amounts
aggregate $20S, 1924 and show an unavoid
able reduction in the future receipts over
last years to that extent. Deducting from
this the amount of railroad taxes paid to
counties as shown in the disbursement
statement. of SCI, 80, will leave a def
cheney for the current year OF 1921, IA. 1t
is found upon examination that the dis
bursement statement combines extraordi-
nary expenditures, such as payments for
furniture, and joint commission claims Of
about So, 900, winch will reduce the deficit
for the current year to about SITS, eo0
The same result, practically, is reached
by different and more exact method. On
examining the future sources of revenue
from another standpoint, mill tax on
the states assessment of $4,000, 000, IL all
collected, will produce $3.50, 200, to which
may be added $4,000, fees from the auditor
of State Insurance department, and $4,000
fees from the secretary of state, making
&243,000."
The governor gave u list of specific APP
propriations made by the first state legisla-
ture, aggregating SAT-, 014.24, and other APP
propriations amounting to S26, S75.H. In
addition to these he gave O list aggregating
$26, 433. 40 of such items as the agricultural
society expense, board of health salaries,
transportation of convicts and insane,
bounty to fire departments, etc., (which he
said chad been paid out of the general
fund during the year by the treasurer upon
warrants drawn by the auditor without any
special act of appropriation by the legisla-
ture, under color of authority from the ter
ritorial statutes After deducting the
cost OF furniture for the state legislature
and decreasing the cost of the legislature,
he said:
s'This deduction leaves $415, 452.76 as the
present annual state expenditure AS we
have before seen there is but $243, 900 to
meet this amount, hence it is necessary for
the legislature to make O retrenchment of
2.452. T6 per annum, In order to bring the
disbursements within the receipts, the
same, practically, as before shown.
II. 10 this end it is suggested, that all
Offices that can be dispensed with, without
detriment to the public service, be abol-
ished and Others consolidated, and SAL
aries diminished until the expense of adj
ministration is reduced to the minimum,
regard being had only to the public needs,
not the welfare of individuals.
''2. Provide In tho general appropriation
bill definite sums for the per diem, mileage
and contingent expenses OF each state Of
fcer and state agent, and of each depart
ment and public institution. including its
supervision and management, thus bringing
under control these now uncertain amounts
embraced in class 81 and fixing maximum
beyond which no responsibility can attach
TO the state, and supplement this enactment
by provision in terms nullifying all terrific
rial statutes SO far as they can possibly be
construed as appropriately public revenues,
or authorizing any state officer, or agent, or
board to incur any indebtedness or expend
any money on behalf of the state except as