The Yale expositor., 1909-01-15
THE GOVERNOR
TO THE LAW MAKERS
THE GOVERNOR EXPLAINS SOME
THINGS TO THE LAW
MAKERS.
URGES NEW PRIMARY LAW
The Glazier Matter Touched On and
Various Matters That Should Re-
ceiVe Conside ratlon.

The governor delivered his third
annual message to the legislature on
Wednesday, a brief sketch of which
follows:
He says the conditions which
brought the treasury balance below
the necessities of the state as the
year was closing arose from a custom
followed for thirteen years in the
auditor generals Office Of reporting to
the superintendent of public instruc-
ton the amount remaining in the pri-
mary school interest fund on Novem
Der 1st OF each year.
"The balance in the state treasury
Is always at its lowest ebb at the
close of the calendar year before
previous to the payment Of state
taxes by the counties of the state.
With the exception of two years only
a nominal amount of primary school
interest money has been included in
these balances.
when the legislative committees
came to make up the general budget
In 1907, they called for information as
to the balance in the state treasury
at the close of the year 1906, and
were informed that IT was approx
mately $2,300.000.00
mo member of the committee and
no one connected with either the leg
islature or the executive Office had
any reason to suspect that more than
a nominal amount OF primary school
money, as shown by the average Of
less than $43,000.00 for the previous
thirteen years, was included in this
balance. They rightly supposed that
as in previous years, the primary
school interest money had been appor.
toned and distributed to the counties
as required by law. The members Of
the committees could properly as
sumo that they were dealing with a
general fund balance and they pro-
ceeded as was entirely business-like
in view of such understanding, TO take
this large balance into account in pre-
pairing the general budget Had they
been appraised Of the fact that one mil
lion two hundred and twenty-five
thousand four hundred and eighty-six
dollars and fifty cents, or over one
half of the balance, belonged to the
primary school interest fund they
would, without doubt, have added
that amount to the total to be raised
by tax for the general purposes of
the state government. In November,
1907, the auditor general withheld ST..
7,494.00 from the November appor.
tionments, an even greater sum than
was withheld the previous year, while
in November last practically every
dollar in the primary school interest
fund was apportioned as it should
have been under the law in each and
every year.
at is my firm belief that every fair
minded person will concede that the
legislature of 1907 acted in the ut
most good faith in levying tax for
the general purposes of the state gov
eminent, having no reason to suspect
that the balance on hand at the close
OF 1906 was not available for general
fund purposes, as in previous years"
State Treasurer.
The matter Of the resignation Of
State Treasurer Glazier is taken up
with particulars that led up to the re-
tirement of that official. The governor
says:
1.-The state has thus far been paid
by the receiver OF the Chelsea Saw
ings bank two dividends aggregating
$276,625.11. To secure the deposit of
state money made by the state treas
bonds to the amount of 5000, 900 Upon
the bank becoming insolvent and its
neglect to repay the state funds de
posted with it, demand was made
upon the surety companies for pay.
ment to the amount of their several
bonds. The American Surety company
of New York Immediately responded
by paying the amount for which II
was obligated, with interest. The
other surety companies refusing to
pay, suits were instituted by the at.
torney general In the circuit court for
the county of Ingham against the
United States Fidelity and Guaranty
company, the Bankers Surety com
pany, the Title, Guaranty and Surety
CO. Dany and the Federal Surety com
pany to enforce the payment of their
obligations. To the declaration filed
by the state the surety companies in
terposed a demurrer which was
argued December II last, but which is
still undecided. The amount involved
in these FIVE cases is $150000
"In addition to this there Is the liza
bility of the surety on the bond OF
Frank p. Glazier, state treasurer in
the sum of s150,000
"The balance due the state from the
Chelsea Savings bank is 1855, 962 6S.
at Is gratifying to note that the
trainers OF the new constitution
sought to safeguard the funds Of the
state by providing that no deposit oil
state funds should be made in ex
cess OF fifty per cent OF the capita
and surplus OF the depository"
State institutions.
Tn legisiating for the needs OF
these institutions and in the consid
GRAFTON of all other propositions which
involve the expenditure of public
money, earnestly urge you TO exer
else the greatest possible economy
consistent with a proper regard fol
the actual needs OF the several OBJ
jects and the duty of the state with
reference thereto"
Regulation Of Private Banks.
During the legislative session o.
1905 and again in 1907 | urged the