The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1897-01-14
TO THE LA WMAKERS
GOV. CLoUGH DELIVERS HIS BEN
NAL MESSAGE.
The Chief Executive Reviews the
Condition Of the state md sug-
sests Legislation which, III His
tlpi lion Will He to the Renefit Of
the Comonwenlth-Av oIuminous
Document.

VIC -,SOuADhVCaAAtA-.iA
Document.
ST. Paul, Mimi, Jan. G.-The following is
synopsis of Gov. Cough's message to the legis-
1ature: "5.Es
Gentlemen Of the Senate and House OF
/, Representatives: You have assembled here |
as representatives Of the people in the leg
meet at time when the citizens Of Min-
nesOta, in common with those Of other I
states, have for over three years been syf-
fering from financial depression and indus
trial StagnatiOn. The markets for the pro- |
ducts Of our farms, factories and mines
have been circumscribed and, as a result,
their prices have greatly deprecated.
Auspicious skies, conspiring with the Won
derful fertility of our soil and improving |
methods of agriculture. have, however, re-
duced the farmers suffering and loss to |
minimum. The vast deposits Nof valuable |
siron ores within our borders more cheaply |
mined than are like deposits in any other |
quarter of the globe, have, by their in
creasing output, fostered industrial i
progress In these and in other respects
no state in our nation has been favored !
4 during the past three years to such an ex-
i tent as Minnesota. From 1890 to 1895 our
population increased from 1,301 500 to
-1,5I4619. Our resources have increased
even faster than our population, and the at
stitude Of our people In days of adversely
shas strengthened our credit at home and
abroad. At the present time, in those parts
rOf the state that have adopted wisely d-
vc-sifed system of farming, prosperity pre-
walls and the outlook Is most encouraging
In no section have crop failures, the plague
OF insects, blight. frost and kindred agents.
-eIther with or without the influence of hard
times. brought want or suffering that
calls for any special state aid at the hands
sof your honorable bodies
In obedience to constitutional require
ment l hereby submit for your considera-
~tion suggestions relative to the affairs and
conditions of the state.
STATE FINANCES.
On the 3Oth day of November, 1885, the
state treasury had to the credit of the sew
eral funds the following sums, to-wit:
Revenue fund. ............... $16S, 1877 O4
Soldiers relief fund. ............ 46,677OO
Funding tax fund. ...... 215 1877 G5
Permanent school fund. ......... 5000 70
General school fund. ......... 4S21572
Permanent university fund. $500. 3,S6S53
General university fund. ......... 399O1.13
Internal improvement fund. 5000. 14O1137
internal Improvement land fund. 80 S63. 80
Internal improvement land fund
interest 435731
State institutions fund. 81, 741.74
School text book fund. .... 4754649
Swamp land fund. .............. 7.914.23
Reform school fund ....... SS2G 46
Grain inspection fund. ........... 110,234.9S
Total .............. $3.50, 114.e9
Statements in detail showing the esti-
mated receipts and disbursements Of the
revenue fund for the next two years arc
elsewhere presented. 1t is from this fund
that the ordinary expenses of the state are
paid. The estimated receipts are based
upon q tax levy Of ~ mills, the same as
that for the past two years. The est-
mated receipts from state taxes are 100000
less than two years ago. This reduction
arises from the fact that the equalzed as
sessed value of the real and personal prop
erty, Of the state Is about $75, 600, 900 less
tkan 1t was at that time. t4s3as y
school and University Funds.
MY predecessor, two years ago, called at
tention to the defective constitutional ard
statutory provisions regulating the invest
ment of school and university and other
fuuds under the control of the state He
s recommended that constitutional amend
ment be prepared and submitted to the leo
pie, authorizing the Investment of those
funds in the bonds of the various munich
Patit!es Of our state. Such an amendment
was prepared and was adopted at the last
election. Appropriate legislation is now
4 needed to make the new constitutional pro-
vision effective. F
detective Titles of State to Real Es.
tate of State Institutions
In his report State Treasurer Koerner
calls attention to the facts discovered by
him OF the defective titles of the state
to several valuable pieces Of property upon
which state institutions are located He
recommends the appropriation of money to
SAS"i tbSSS lllicS. Ills recommendation is
most timely one. and l trust will receive
proper consideration at your hands.
Financial distributions.
The public examiner makes a number 6f
a wise recommendations concerning the laws
regulating the man ~ ament of our financial
institutions. call your attention to thp
following: - -
The banking law should be so amended a 5
& 10 require all private banks to Indicate
by their names that they are not incorno-
T1tGO. and also for
hcation of their condition. The Importance
OF THIS recommendation can be seen. from
the TACT that these banks in Minnesota
number POS and have deposits OF over
5000 900. s - I'M :
The laws governing loan and trust COM
panies should be so amended as to limit the
Inability which such companies NAV assume
as indorser or guarantor. The permission
E 70 iss'le debenture bonds should be restrict
ed to the security of such mortgages as the
company may have in excess of those in the
& guaranty fund. g@s
The law regulating national building and,
joan associations should, be SO amended as
20 permit the stock of borrowing members
% have dividends credited to the same to
che extent that would accrue, If computed
at the rate which the member is paving in
Interest, and premiums. This would leave
the earnings of the non-borrowing member
TO be charged with the expense of adminis-
tration, which would not be& negotiable,
when 1t Is considered that the borrowers
pay all profits when the non borrowers re-
ceive. The change is recommended to assist
I IN securing greater economy Of manage
ment, as we'll as a greater equity to the
borrowing or debtor class Of members
The affairs of four of the national build
Ing associations are being wound up through
the courts. Owing to the nature of the
business, SO much delay and expense is met
with in the process as to make the situation
serious one for all conc ,rned It is hoped
that some scheme may be evolved and en-
bodied In law BY your honorable bodies BY
which liquidation Of such concerns nay be
permitted in an equitable manner and also
void the present expense and serious delay
IN fnal settlement. =
Difficulties somewhat similar have devel-
oped in connection with local building and
loan associations in the hands Of receivers.
As with the nationals, / can commend the
subject to your consideration, trusting Sthat
come method may be developed for scouting
Justice to all the many small deposifors
without involving undue expense or delay
Railroad and Warehouse COmmis-
sion.
The railroad and warehouse commission
has submitted report of the work accom-.
plished under Its direction during the past
two years. 1t reneWs a number OF recon-