The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-01-11

s266. 400, O32 s3. The total deposit increase
in Minnesota's financial institutions, not
including private banka and building and
loan associations, is approximately sixty
millions of dollars, or 40 per cent: this be-
ing without doubt the greatest deposit
growth in both volume and percentage for
any equal period in the states financial
history. The examination of banks sub
iect to inspection by the public examiner
has developed the fact that the demand
upon our banks for commercial loans is
der favorable financial conditions, such as
the state is enjoying at the present time,
the banks have considerable amount of
surplus funds. Under our present bank
ing laws state bank is not permitted to
make a loan in excess Of Is per cent of
it's capital stock and surplus. First mort
Iy satisfactory class of investments, and
probably no better or safe class of loans
can be made by banks operating in farm
ing communities. Under the circumstances
I would concur with the recommendation
Of the public examiner that our banking
laws be so amended as to permit of the
making of first mortgage loans on i'm
proved farms located within our state
equal to Is per cent of the capital stock
and surplus of the bank, all such loans
to be limited to and not exceed so per
cent of the cash value thereof: provided
that no bank shall invest in that class
of loans in the aggregate more than so
per cent Of its deposits.
PERMANENT SCHOOL FUND.
I desire to call your attention to one
peculiarly in the law relating to the in
The law now provides that loans to
school districts for the erection of school
buildings shall be at rate of per cent
per annum, and at the same time pro
the construction of ditcnes for drainage
at 3 per cent per annum 1t is not fair
that the institutions for which this fund
is created should suffer by this discrimina-
tion 1t is hardly fair to provide high
er rate of investment for the schools of
the state than for other purposes. We
should not discriminate against the edu-
and either the rate of interest in one case
should be raised, or in the other lowered
STATE UNIVERSITY.
No one institution within our state is
of so much Importance as our state uni
phenomenal, and with the aid and en-
enlargement which should come to it
from the legislature it's future possibili-
ties are unlimited Requests for financial
are not as large as during other periods,
and are submitted to you with the sug-
gestion that they receive. careful con-
sideration. 1t is a recognized fact that
this institution has been handicapped
somewhat by reason of financial policies
which have hitherto made it impossible
to pay adequate salaries Dy winch men or
recognized ability could be employed and
retained in the institution. and from time
to time we suffer the loss of some of our
best teachers by reason of the inability
them. Certainly Minnesota can afford to
pay reasonable compensation for this
class of service, and to provide means by
which we ,. can compete with any ed9ca-
for talent which would permanently en-
dow our university.
Since the last session of the legislature
the state university has fallen heir to a
bequest, providing for a memorial hos
pital in conjunction with the medical
school, This bequest has not yet been
secured because it's acceptance would in
volve a new policy and the board Of re-
gents decided that this could not properly
be done without legislative sanction and
sarily be conditioned upon the legislature
making provision for the future mainten-
ance Of the proposed hospital. Your at
tention will be officially called to this
should know that the bequest, while urged
for this specific purpose, will still be
available for the use of erecting a me-
mora Sp a IF ehsr sa Of
money which can be used to splendid
advantage at the university, I trust that
the question will receive from you that
consideration to which it is entitled.
I am pleased to be able to convey to
the legislature the information that during
the past biennial period all settlements by
the timber board of the state for timber
strict accordance with the law. Irregular
settlements of preceding periods have
likewise been considered, and number
of cases were placed in the hands Of the
attorney general with strict instructions
to begin immediate and continuous prose-
cution of the cases with a view to the
collection of all moneys to which the
state is entitled under the law. The at
torney general, in his prosecution of these
cases, has secured from the supreme court
an opinion sustaining the validity of the
present timber trespass law, and it re-
quires no amendment SO far as it relates
to punishment of offenders under the law.
1t has, however, some features which
should be changed. The timber board
ity in settling controversies and making
adjustments by which the necessity of
some law suits might be dispensed with.
A change should certainly be made in
re-scale of state timber Under the pres
ent statute provision is made for re-
scale upon a demand by the state au-
ditor, and in such case he is required to
serve notice upon the surveyor general,
giving description of the tract upon
which re-scale is demanded. The sur
veyor general thereupon appoints one Of
estimator, appointed by the auditor for this
purpose the two to make a re-Scale Of the
timber embraced in the permit, and make
a report of the same for record with the
auditor. 1t is provided that in case both
the deputy and the estimator agree upon
the scale, the same shall be final and
binding upon the state and the purchaser;
and If it shall appear by the state re-
scale that the first scale was practically
correct, the state shall pay the surveyor
general the sum of IS for each day spent
by his deputy in making such re-scale, in
addition to all necessary expenses in
Cured by him in travelling to and from
the land and that in case of a material
difference in the two scales, the surveyor
general shall not be entitled to compen-
sation for such re-scale.
PRIMARY ELECTION LAW.
1t is hardly necessary to call your at
tention to the need Of some very i'm
ton law. Much opposition to the law as
it now stands exists, and there is preju-
dice against primary election at all be-
cause of the possibilities of abuse under
our present system. 1t is urged, and
not without some degree Of reason, that
the present primary election system cul-
tivates perjury, fraud, deceit, misrepre-
sentation. and total disregard for our
entire election system. Citizens called
upon to declare their political affiliations
feel that election judges trespass upon
the constitutional rights Of the citizen and
ignore to some extent the very purposes
for which the law was created. Candi-
dates for office, recognizing the posi-
bility of victory through the assistance of
political parties other than the one with