Year: 1875

/


vacancy, and then recommends the repeal Of
the present laws regulating insurance compa
nies, doing business in this State, as follows


INSURANCE DEPos1Ts-In my inaugural
address I ventured to say that, in my judg
ment, good policy dictated the repeal Of the
present laws requiring deposits from insurance
companies not incorporated by this State
Further examination and reflection confirms
me in that opinion. The supposed security tc
policy-holders from requiring such deposits is
fallacious. If company is sound, there is
not the least difficulty in recovering any loss
by process of law and if it is unsound, the
fact of deposit being made in this State
would afford very little protection to our pol
icy-holders in case of disaster to the company
is, moreover, g. serious legal question wheth
er these deposits can be so sequestrated from
the general assets of company as tn prevent
their becoming part of the general fund ap
plicable to the payment of all creditors in case
of the insuficiency of other assets. The gen.
eral effect of requiring such deposits is to ex'
elude the best companies and admit the weak
est, except in cases where the sacrifice of with
drawing from the State overbalances the injury
to the company by scattering its funds in the
manner required


transmit herewith letter addressed to
me officially by an eminent insurance author
ty, in which the whole matter is discussed in
a most clear and conclusive manner. | here
by renew my former recommendations OF q
repeal of the present laws on this subject, in
order to allow free competition in this branch
of business, under such restrictions only as
have regard to the general character and
strength of the several companies.


EXTENSION OF TIME FOR COLLECTION OF
TAxEs.-In connection with the comptroller
generals report, desire to correct misap
prehension now widely prevailing as to the
power of the governor and comptroller-gener'
al in extending the time for the collection of
taxes.


In the tax act of 1868, in section 147, au
thority was given to the State auditor, with
the approval of the governor, to extend the
time for the performance of the duties re-
quired of any officer by that act 1t is more
than doubtful whether this provision ever
gave power to the governor and State auditor
to extend the time for the collection Of taxes
However that may be, that section was re-
pealed by the act of March 8, 1871, (vol. IA
statutes at large, page 1927 No similar pow
er was again conferred On any officer until the
passage of the act of February 6, 1874, (acts
of 1884, page $3.50. The latter act was
expressly limited in its application to the fiscal
year commencing November /, 1873, and its
operations, of course, ceased with that year.


The result is that the only power now pos,
sessed by any executive officer or officers to ex-
tend the time for the collection of taxes is con,
ferred by section 139 of the act of March 10,
1874, (acts 1874, p 77S), which is in the
following words: "That whenever the general
assembly shall fail to make the annual levy
of taxes, or the collection of the same may,
in any way, be delayed, it shall be the duty
of the ptroller-general to notify each
county treasurer that the penalty for non-pay,
ment shall not attach until after the expira,
tion of sixty days from the date of his public
announcement Of his readiness to collect the
said taxes"


Under this section the governor has no
power to act, and the power of the comptrol'
ler-general is limited to cases Of delay in COM
mencing the collection of taxes at the regular
time. call special attention to this state.
ment of the law in order TO relieve myself of
the frequent and urgent applications made to
me for my action in postponing the collection
Of taxes.


If any further legislation on the subject is
needed, it will be the duty of the general as
sembly to provide it.


THE LUNATIc AsYLUM.-The comptroller
generals report covers that of the superlnten-
dent Of the lunatic asylum. This institution
deserves the generous support of the State.
In many respects its present condition is very
satisfactory. The buildings have been great
ly improved, and the domestic economy of the
institution and the professional treatment Of
the patients are believed to be worthy Of high
commendation.


1t is, however, the financial condition of the
institution which will require most serious at
tention. 1t appears that there was a debt
owing by the institution of S55, ,295.55 at the
close of the last fiscal year, October 81, 1874.
This debt results from the excess Of expendi-
lures over receipts for several years past.
From whatever motive expenditures beyond
the means provided for meeting them are
made, the practice is not to be approved. No
public officer, under anything less than very
extraordinary circumstances, can be justified
in assuming to incur obligations for the pub
lie without express authority Of law.


1t is proper to call attention at this point to
the act of March II, 1874, "to regulate the
manner in which public funds shall be dis.
bursed by public officers" This act makes
it felony "for any public officer Estate or
county, to enter into contract for any pnr-
pose whatsoever, in sum in excess of the tax
levied or the amount appropriated for the ac
complshmept of such purpose" Hereafter,
therefore, no expenditures can be made in ex-
cess ofthe appropriation. The amount of tax
for the support of penal, charitable and edu
cational institutions has already been fixed
for the present fiscal year. This levy will not
permit the appropriation of single dollar for
payment of past Indebtedness. By reference
to page - of the comptrollergeneral's report,
the amount to be realized from this levy will
be about s15OO00. BY reference to the act
making appropriations for the last fiscal year
it will be seen that the total appropriations
under the same head were upwards of $780,
900. 1t is clear, therefore, that no appropria-
tons can be made for the present year in ex-
cess of those of last year. l cannot there
FORE consent to recommend an increased ap-
preparation for the lunatic asylum for the
present fiscal year, unless it can be shown
from what source funds can, with certainty, be
obtained to meet such increased appropria-
tions. regret to reach such a conclusion, for
no one can have a stronger sympathy with
this institution than | have, or more ardent
wish to increase its efficiency and extend its
blessings. But we must not, from sympathy
or bcncvolence, repeat the financial mistakes
of the past. 1t is far better for every public