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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Illinois. General Assembly. Title: Report of the Efficiency and Economy... Place: [Chicago] Date: 1915 MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD 650 116 •'^OrtTGtjw^U} Illinois. General assembly. Efficiency and economy com- mittee. Report... 1915. (Card 2) by vSpurgcon Bell.— A report on charitable and correctional institutions, by J. W. Garner.— A report on educational administration, by J. M. Math- ews.— A report on the administration of labor and mining legislation, l)y W. F. Dodd. — A report on public administration in relation to agriculture and allied interests, by J. W. Garner. — A report on public health adminis- tration, by J. M. Mathews. — A report on supervision of corporations and related business, bv M. II. Robinson.— A report on state administration of public works, parks and buildings, by C. O. Gardner.— A report on the military department of the state of Illinois, by Quincy Wright.— A report on civil service laws, by A. C. Hanford.— A report on the secretary of state and law officers. — A report on economy and efticiency commissions in other states, by A. C. Hanford. — A report on fire insurance rates in Illinois, by M. H. Robinson. — Comparative statement of appropriations. Comp. by T. P. Waters. 1. Ill i n ow — E ?tee uU ve ^^^ detoilincat^ 2. Civil service — Illi- nois. I. Manny, Wal- fW^ t<^«" I- "• Title. ^ Library of Congress \J^ JK5755.A6 1915 15-27298 Copy 2. 660 116 >»•?.'.' I cc.-itKir Illinois. General assembly. Efficiency and economy com- mittee. Report of the Efficiency and economy committee cre- ated nnder the authority of the Forty-eighth General as- Chicago, The Windermere sembly, state of Illinois ... [ presS] 1915. 1051 p. diagrs. (2 fold.) 24'". Dated: December 1, 1914. Walter I. Manny, chairman. The "Report" and the "appendices" are pub. also separately, and-each has also special entry in this catalogue. Appendices: A report on revenue and finance administration, bv J. A. Fairlie.— A report on the accounts of the state of Illinois, bv G. E. Fra- 2er.— A report on accounting administration for correctional institutions, (Continued on next card) 15-27298 €) RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE; ?<, CO A' A^ a^ D" Is "D ^ N CO CJl ^•< OOM o e: ^^^ ^'ly •J' (Jj -p* CJl en 3 Z > o m OQ "^ o O CO N o •v- -Al ''i^ -■^' «**>/ .'V/ ^.. .■v^ a? v^. c? A ■¥■3 ?>:>' *' O O 3 3 > en O 3 3 .^/ > ^Z ^.:^. a^ ^s^:^. o o 3 3 K3 C/1 o f;'='^ErEi;|S|? IS IS CO 00 c> 00 b K3 ro Cn 1.0 mm 1.5 mm 2.0 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdetghiiklmnopgrstuvwxyz 1234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 ^. V '^^-^ ^ %;cr ^o & ^^ ^fd> fp ^f^ % ^A. I^o t^ «"^ K- ^c? ^Sp fp ?a> m O O "o m -0 > C CO I TJ ^ m o m .<^' c>. fe V kfo ^o ¥* fp •— • hO ai o 3 3 3 — Q) cr • ABI bcde CDEFG fghijkl FGH jkIm 3i ^ ^ IJKLM nopqr ftz OPQR uvwxy J^c Nl CO ^— 1 a>x ^-< OOM U3 ^^ O cnx ^-< OOM V£> O ^-v x^<5 Columbta Winibttsiitp intlbeCttpof^tD^atk LIBRARY £>clbooI Of iBut(ineKK ^ht iMontgometp Htbtatp 9amttitamp REPORT OF THE EFFICIENCY AND ECONOMY COMMITTEE CREATED UNDER THE AUTHORITY OF THE FORTY-EIGHTH GENERAL ASSEMBLY STATE OF ILLINOIS SENATORS WALTER I. MANNY,:Chairman W. DUFF PIERCY - . - LOGAN HAY .... CHARLES F. HURBURGH - Mt. Sterling Mount Vernon - Springfield Galesburg REPRESENTATIVES CHARLES F. CLYNE, Secretary - SPEAKER WILLIAM McKINLEY - JOHN M. RAPP .... EDWARD J. SMEJKAL - JOHN A. FAIRLIE, Director 1915 Aurora Chicago Fairfield Chicago Urbana .^ / /yify*-' /I^ 7 W 4- THE WINDiRlUM FRKSS. CHICAGO 191 i^y^^ t ^ CONTENTS. PART I. Page Present Organization of State Government 7 State Offices, Boards and Institutions 8 Creation of the Committee H Methods of Investigation 13 Meetings and Public Hearings 15 Defects of the present arrangements 18-24 Lack of correlation 19 Scattered offices 20 No standards of compensation 20 Overlapping functions 20 Irregularity of reports 21 Ineffective supervision 21 No budget system 22 Imperfect accounts 23 Inadequate advice in legislation 23 Irresponsible government 24 Tendencies towards concentration 24-28 In Illinois ^ 24 In other states 25 Efficiency and Economy Commissions 26 Municipal Administration 27 The United States Government 27 Foreign Countries 28 General Principles and Purposes of the Committee's Plans 28-32 Proposed Departments 28 General Considerations 30 PART II. Finance Administration 33-39 Present Arrangements 33 Inefficient Results 33 In other States and Countries 35 Proposed Finance Commission 35 Local Administration 36 Financial Results 37 Proposed Finance Bill 37 Accounting 38 Contracts, Printing and Supplies 38 Charitable and Correctional Institutions 39-44 Present Management 39 41 Advantages of Central Board ^ In Other States ^ Board of Prison Administration '• Educational Agencies ^ Present Organization _ In Other States and Countries Recommendations aq Z'l Administration of Labor Laws " Existing Authorities . Reorganization in Other States Department of Labor and Mining Results Anticipated -. Proposed Bill ii 57 Agricultural Agencies * -^ Existing Arrangements In Other States and Countries Proposed Organization V? 60 Public Health Administration ' Present Authorities In Other States -^ Recommendations aa fit; Public Works, Parks and Buildings ^' Public Works and Parks ^ Public Buildings and Monuments Recommendations • /v=» Law Officers -q Military Administration Elections -* Civil Service Laws -- Proposed Bills PART III. 74-77 Results to be Expected _ Correlation and Supervision Assistance in Legislation Responsible Government _- Budget and Accounts „ Economy Expected -_ Need for Further Investigation * * Supplemental Statements APPENDICES. Revenue and Finance Administration, by John A. Fairlie 83-184 The Accounts of the State of Illinois, by George E. Frazer, C P. A 185-248 Accounting. Administration for Correctional Institutions, by Spurgeon Bell 249-340 Charitable and Correctional Institutions, by James W. Gamer 341-402 Educational Administration, by John M Mathews 403-486 Labor and Mining Agencies, by W. F. Dodd 487-590 Agricultural Agencies, by James W. Garner 591-642 Public Health Administration, by John M. Mathews 643-696 Supervision of Corporations, by Maurice H. Robinson 697-752 Public Works, Parks and Buildings, by C O. Gardner 753-866 Military Administration, by Quincy Wright 867-906 Civil Service Laws, by A. C Hanford 907-938 Secretary of State and Law Officers 939-970 Efficiency and Economy Commissions in other States, by A. C. Hanford 971-998 Fire Insurance Rates, by Maurice H. Robinson 999-1028 Comparative Statement of Appropriations, compiled by Thomas P. Waters 1029-1051 CHARTS State Executive Organization in Illinois, to face *" Proposed State Executive Organization in Illinois, to face 30 • • EFFICIENCY AND ECONOMY COMMITTEE STATE OF ILLINOIS. PART I. To the Forty-ninth General Assembly. PRESENT ORGANIZATION OF STATE GOVERNMENT. The Constitution of Illinois provides for three main departments of State government — legislative, executive and judicial. The judicial powers are vested in an organized series of courts created by the Con- stitution and by statutes. The legislative power is vested in a General Assembly, consisting of a Senate and a House of Representatives, elected by the people, whose acts are subject to a limited power of veto by the Governor. The executive department consists of a Governor, Lieutenant-Governor, Secretary of State, Auditor of Public Accounts, Treasurer, Superintendent of Public Instruction and Attorney General, provided for by the Constitution and elected by popular vote; and of more than a hundred other State offices, boards and commissions, created by statute, and in most cases appointed by the Governor, by and with the advice and consent of the Senate. The number of State offices, boards and commissions has been rapidly increasing; and every session of the General Assembly sees the origin of new authorities. Less than a fourth of those now in exis- tence were established before 1870; and more than a third of the present number have been created during the last decade. These executive departments, offices and institutions now employ about 6,000 persons and expend annually about $19,000,000. Along with this increase in State authorities has been an equally significant increase in appropriations and expenditures. From 1909 to 1913, 34 new State agencies were created. In the same period the biennial appropriations increased from $19,857,576 to $37,915,417. 8 1809 1812 1818 1827 1839 1847 1849 1851 1854 1857 1865 1867 1869 1871 1872 1874 1875 1877 EFFICIENCY AND ECONOMY COMMITTEE. STATE OFFICES, BOARDS AND INSTITUTIONS^^) (In chronological order of their creation.) Governor Secretary; 1818, Secretary of State Attorney General — 1848; revived 1867 Auditor of Public Accounts Treasurer Lieutenant-Governor State Penitentiary (Alton) — 1857 School for the Deaf <2> Central Hospital for the Insane ^2) School for the Blind <2) State Geologist Superintendent of Public Instruction State Board of Education (Normal University) State Penitentiary (Joliet) Asylum for Feeble Minded Children ^2) Soldiers' Orphans' Home ^2) Charitable Eye and Ear Infirmary <2) Canal Commissioners Illinois Industrial University (University of Illinois) State Entomologist State Reformatory State Board of Equalization Commissioners of the State Library State Board of Public Charities— 1909 Southern Hospital for the Insane ^^^ Northern Hospital for the Insane^^) Southern Illinois Normal University Lincoln Park Commissioners West Chicago Park Commissioners Railroad and Warehouse Commission — 1913 Chief Grain Inspector State Board of Agriculture State Canvassing Board Soldiers' Monument Committee (Mound City)<^) Printer Expert Commissioners of State Contracts Fish Commissioner — 1879 State Board of Health Commission of Claims — 1889 Southern Illinois Penitentiary Eastern Hospital for the Insane <2) Humane Agents State Laboratory of Natural History Natural History Museum Douglas Monument Committee (Chicago) <') (1) Tbis list dots not incladt a considtrablt nnmbar of minor and tamporary boardi and commlailoni crtattd from timt to tlntt REPORT OF THE COMMITTEE. 1879 Commissioners of Labor Adjutant General Board of Fish Commissioners — 1913 1881 State Board of Pharmacy Board of Dental Examiners State Veterinarian 1883 State Mining Board Mine Inspectors 1885 Live Stock Commission State Game Warden— 1899 Soldiers' and Sailors' Home^^) 1887 Industrial Home for the Blind<2) Trustees of the Lincoln Homestead Logan Monument Committee ^^^ 1889 Court of Claims State Historical Library Asylum for Insane Criminals ^^^ Gettysburg Monument Committee^^^ 1893 Superintendent of Insurance Factory Inspector Training School for Girls ^^^ Chickamauga Monument Committee^^) 1895 Illinois Farmers' Institute Eastern Illinois Normal School Northern Illinois Normal School Western Hospital for the Insane General Hospital for the Insane ^^^ Soldiers' Widows' Home ^2) State Board of Arbitration Lincoln Monument Trustees Lovejoy Monument Committee ^^^ 1897 State Board of Pardons State Water Survey Board of Law Examiners Examiners of Architects Shiloh Battlefield Monument Committee <3> 1899 State Food Commissioner State Game Commissioner — 1913 State Architect Free Employment Offices Western Illinois Normal School Board of Veterinary Examiners 1901 St. Charles School for Boys<2) Louisiana Exposition Committee (3> Pan-American Exposition Committee (3> (2) Now under the Board of Administration. (3) Temporary. 10 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. u 1903 Board of Prison Industries Examiners of Certified Public Accountants Voting Machine Commissioners Fort Massac Trustees 1905 Civil Service Commission State Highway Commission — 1913 Internal Improvement Commission — 1911 State Geological Conmiission Commissioners of the Department of Justice. 1907 Board of Examiners of Registered Nurses Food Standard Commission Penitentiary Commission Commission on Uniformity of Legislation Anderson ville Monument Committee <^) George Rogers Clark Monument Committee <^^ 1909 Board of Administration Charities Commission State Fire Marshal Barbers' Examining Board Stallion Registration Board State Art Commission Library Extension Commission Chief Inspector of Private Employment Agencies Perry Centennial Commission <^^ Vicksburg Military Park Committee ^^^ 1910 Mine Rescue Station Commission 1911 Board of Fish Commissioners — 1913 Rivers and Lakes Commission Illinois Park Commission State Inspector of Apiaries Kenesaw Mountain Monument Committee^^^ Edwardsville Historical Monument Committee<3> General Michael Kelly Lawler Monument Committee^^) Panama- Pacific Exposition Commission ^^^ 1913 Public Utilities Commission^ State Highway Commission Game and Fish Conservation Commission Industrial Board « Miners' and Mechanics' Institutes Miners' Examining Board Illinois Centennial Commissions^) Anniversary of Negro Emancipation Committee ^^^ John P. Altgeld Monument Committee S3> Fort Edwards Monument Committee ^^^ Thomas Carlin Monument Committee <3> Legislative Reference Bureau. (4) This took over th« work of the Railroad and Warehouse Commission. (6) This consolidated the work of Fish Commission and Game Commissioner. The organization and functions of these executive officials are for the most part controlled by the General Assembly. It is true that the general powers of the Governor and Lieutenant-Governor are defined in the Constitution; but many specific powers of the Governor, and the scope of his authority over other officers is determined to a large extent by the General Assembly ; and his direct control over the ad- ministration is less than is often supposed. The primary functions of the other elective constitutional officers are suggested by their titles but their powers and duties are for the most part defined by statute ; and under existing laws their authority is in some respects less than is in- dicated by their titles; while in other respects they have powers not directly related to their primary functions. Over the offices, boards and commissions created by statute, the General Assembly has full authority. In practice, in the confusion of legislative sessions, new boards and offices have usually been created with little reference to previously existing authorities, either as to forms of organization or the scope of their powers. Most of them are substantially independent of each other, and are subject to no control, except the nominal supervision of the Governor, through his powers of appointment and removal. The constitutional officers and some of those created by statute are not even subject to this nominal super- vision. As a result of these conditions the executive authorities of the State lack any semblance of systematic organization. At the same time the numerous list of State officials covers a wide, varied and ever in- creasing range of activities ; and are constantly touching the life of the community at more and more points. That these offices, boards and commissions should be efficiently and economically organized and con- ducted is of the highest importance to the State. CREATION OF THE COMMITTEE. In his inaugural address, Governor Dunne recommended "the ap- pointment of a joint committee of both houses of the Legislature to examine into the condition of the public institutions of the State, and to confer with the Board of Administration to ascertain if it is not possible to reduce the expenditures of the same without impairing the efficiency of these institutions." Subsequently, resolutions were introduced in the Forty-eighth General Assembly by Senators Hurburgh, Denvir, Keller, Tossey, and Jones, to provide for an investigation of State offices, boards and insti- tutions ; and a similar resolution had been introduced by Senator Hur- burgh in the previous General Assembly. 12 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. 13 By Senate Joint Resolution No. 22, the Forty-eighth General As- sembly directed an investigation of the State boards, commissions and bureaus, in order to determine whether greater efficiency and economy could be secured by a reorganization and consolidation of administra- tive machinery. This resolution provided as follows : Whereas, The General Assembly of the State of Illinois has from time to time created various commissions, boards and bureaus and other additions to the State Government; and, Whereas, The duties of these various commissions, boards, and bureaus in many cases overlap and conflict, one with another: and, Whereas, The duties of these various commissions, boards and bureaus, etc., can in many instances be more efficiently and more economi- cally performed by combining these various departments and abohshmg those which are an unnecessary drain on the public treasury; and. Whereas, Owing to the marvelous growth of our State in all the departments of its government a thorough reorganization with a view to greater efficiency and greater economy is demanded; now, therefore, be it Resolved, By the Senate of the State of Illinois, the House of J^^P^fj senatives concurring therein. That a joint committee of eight (5) De appointed, composed of four (4) Senators and four (4) Representatives, who shall have full power and authority to investigate all departments ot the State government, including all boards, bureaus and commissions which have been created by the General Assembly, such investigations to be made . with a view of securing a more perfect system of accounting, combining and centralizing the duties of the various departments, abolishing such as are useless and securing for the State of Illinois such reorganization that will promote greater efficiency and greater economy in her various branches ot government ; Resolved, That the Committee shall have whole power and authority to subpoena witnesses and to examine and compel the production of books, papers and documents; Resolved, That the committee shall have full authority to employ expert accountants, attorneys, stenographers and other assistants necessary to carry on their investigations and make their report; Resolved, That the expenses of said committee and employees shall be paid out of any appropriation made therefor by the General Assembly upon voucher properiy drawn upon the Auditor of Public Accounts, prop- erly itemized and signed and approved by the chairman and secretary of the joint committee. The committee shall conduct its investigations and report its findings and make its recommendations, together with such bill or bills that it may deem proper to submit to the Forty-ninth General As- sembly of the State of Illinois. The Forty-eighth General Assembly also, by Item 68 of House Bill 895, appropriated for the expenses of the Committee appointed under Senate Joint Resolution No. 22, the sum of $40,000. The Committee appointed consisted of Senators Walter I. Manny, of Mt. Sterling; W. DuflF Piercy, of Mt. Vernon; Logan Hay, of Springfield; and Charles F. Hurburgh, of Galesburg; and of Repre- sentatives, Speaker William McKinley, of Chicago; Charles F. Clyne, of Aurora; John M. Rapp, of Fairfield, and Edward J. Smejkal of Chicago. The Committee met in Springfield, Illinois, on August 1, 1913, and organized by the election of Walter I. Manny as Chairman, and Charles F. Clyne as Secretary. At a subsequent meeting Speaker William Mc- Kinley was elected as Vice-Chairman. The resolution creating the Committee imposed on it two main du- ties: (1) to secure a more perfect system of accounting; and (2) to propose a general reorganization and consolidation of State offices, boards and commissions. After due consideration the Committee agreed that the plan of administrative reorganization should precede the introduction of a comprehensive system of accounting. The latter is necessarily dependent on the system of organization; and to prepare a complete system of accounting would require a more detailed inves- tigation than was possible with the funds and the time at the disposal of the Committee. The Committee have, therefore, given their main attention to the problem of administrative reorganization and consoli- dation. At the same time a preliminary study has been made of the present accounting methods ; and a general basis for a proposed ac- counting system has been prepared, which has been worked out in detail for the correctional institutions of the State as a concrete illus- tration of the general plan. METHODS OF INVESTIGATION. The members of the Committee, by reason of their service in the Forty-eighth and preceding General Assemblies, and particularly by reason of their service on appropriation committees, were familiar with the lack of systematic organization among the numerous State offices, boards and commissions, and were aware that new authorities had at times been created when the powers and duties of such authori- ties might have been more effectively organized in connection with already existing departments. They were also acquainted with the confusion resulting from this defective organization and with the dif- ficulties of exercising adequate control over appropriations and expen- ditures. The Committee believed, however, that it should have as a basis for its work a more thorough and exact knowledge than was possessed by its members, of the existing State offices, boards and commissions, of the laws under which they operated, and of their internal organization, appropriations and work performed. After making some preliminary study of the situation in Illinois and neighboring states, the Committee employed John A. Fairlie, Professor of Political Science in the Uni- versity of Illinois, as Director of its investigational work. For this investigation, the numerous State offices, boards and com- missions were combined into a number of groups into which they naturally fell, on the basis of their general functions, as follows : 14 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. IS Finance Administration Education (including Libraries and Scientific Surveys) Ciiaritable and Correctional Institutions Public Works and Buildings Agricultural Agencies Labor and Mining Agencies Public Health Control of Corporations and Public Service Business Law Officers State Militia The Committee directed that the offices, boards and commissions as thus grouped be investigated and reported upon with reference to the statutes under which each is organized; its powers, duties and internal organization, as provided by law and as in fact exercised ; its appropriations and expenditures ; its relations with other offices, boards and commissions in law and in fact ; the manner in which its activities are exercised ; and how far its powers and duties as imposed by law or in fact exercised, overlap and duplicate the powers and duties as imposed by law upon or exercised in fact by other offices, boards and commissions ; and also the similar laws and their operation in other states and countries; with recommendations for reorganization and consolidation. In carrying out these investigations expert assistants have been em- ployed, from the staff of the University of Illinois, from other uni- versities and from those with practical experience in similar investiga- tions. Each division of the work has been in direct charge of some one with special knowledge and fitness for the particular problem. In making their investigations, the Director and the other investigators have consulted freely with the State officers, boards and commissions, and with other persons and organizations affected by or interested m the working of such services. The Director and these special investigators have made a series of valuable reports to the Committee, which will be published separately and as appendices to this report. It is believed that these contain the most comprehensive survey ever made of the organization, powers and duties of the executive administration of any State government. These ^ special reports include the following : Revenue and Finance Administration, by John A. Fairlie, Professor of Political Science, University of Illinois. The Accounts of the State of Illinois, by George E. Frazer, C. P. A. and Comptroller of the University of Illinois. Accounting Administration for Correctional Institutions, by Spurgeon Bell, formerly Secretary of the Chicago Commission on City Expenditures. Charitable and Correctional Institutions, by James W. Garner, Professor of Political Science, University of Illinois. Educational Administration by John M Mathews, University of Illinois. Labor and Mining Administration, by W. F. Dodd, Associate Professor of Political Science, University of Illinois. Agricultural Agencies, by James W. Garner, Professor of Political Science, University of Illinois. Public Health Administration, by John M. Mathews, University of Illinois. Supervision of Corporations, by Maurice H. Robinson, Professor of In- dustry and Transportation, University of Illinois. Public Works, Parks and Buildings, by C. O. Gardner, Municipal Reference Bureau, Cincinnati. Military Administration, by Quincy Wright, University of Illinois. Civil Service Laws, by A. C. Hanford, University of Illinois. Valuable assistance in drafting bills has also been given by Elmer M. Liessmann, attorney of Chicago; F. D. Bramhall, of the University of Chicago ; and C. E. Woodward, of Ottawa, formerly in the office of the Attorney General. t MEETINGS AND PUBLIC HEARINGS. Following its first meeting, a month after the adjournment of the General Assembly, the Committee has held numerous sessions, increas- ing in frequency as the reports of investigations were submitted for consideration. Meetings have been held on the average twice each month, frequently at weekly intervals, and the later sessions have often continued for two days at a time. As a result of the discussion of reports and recommendations dur- ing the first half of 1914, a series of tentative plans for the reorganiza- tion of State offices, boards and commissions were provisionally approved by the Committee. On June 18, 1914, a brief preliminary report was issued by the Committee, stating in general terms the exist- ing conditions and the broad outlines of the Committee's plans to com- bine and consolidate the numerous authorities into a limited number of executive departments. Following the publication of this preliminary report a series of pub- lic hearings were held by the Committee, in Chicago and Springfield, for the further consideration of the tentative plans. Notice of these hearings was given in the public press; and special notices were sent to the State officers, and to organizations and individuals known to be interested in the work of particular groups of authorities. i 16 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. 17 l! i' At these public hearings, the following State officials, representa- tives of associations and organizations and others have appeared before the Committee, and discussed the proposed plans for the reorganization of State administration in Illinois: Edward F. Dunne, Governor. Patrick J Lucey, Attorney General. George E. Cole, of the Constitutional Convention League. Charles E. Richards, of the Chicago Association of Commerce and the Chicago Real Estate Board. A. L. Strauss, of the Chicago Real Estate Board. S. M. Singleton, of the Chicago Citizens' Association. Peter White, of the City Club of Chicago. . H. E. Keeler, Director of the Chicago Bureau of Pubhc Efficiency. George C. Sikes, Secretary of the Chicago Bureau of Public Efficiency. Douglas Sutherland, Secretary of the Chicago Civic Federation. Russell Whitman, President of the Chicago Civil Service Reform Associa- R. E.^Blackwood, Secretary of the Illinois and Chicago Civil Service Reform yv QQOdritioris J. H. Burdett, Chairman of the Civil Service Commission. William B. Moulton, member of Civil Service Commission. Ward R. Robinson, Secretary of the Civil Service Commission. F. S. Dickson, Adjutant General. Penal and Reformatory Administration. Archie L. Bowen, Executive Secretary of the Charities Commission. Fred J. Kern, Thomas O'Connor, Frank D. Whipp and James Hylana, members of the Board of Administration. . Albert Gravenhorst, Chairman of the Board of Managers of the Illinois State Reformatory. ,. . o t5 r o William C. Graves, General Superintendent of the Illinois State Ketorma- tory. . x^ . William V. Choisser, Warden of the Southern Illinois Penitentiary. Thomas M. Kilbride, Clerk of the State Board of Pardons. Educational Administration. Francis G. Blair, State Superintendent of Public Instruction. Dr. David Felmley, President of the State Normal University at Normal. Walter P. Morgan, President of the State Normal School at Macomb. A. R. Crook, Curator of the State Natural History Museum. Mrs. Laura M. Evans, member Board of Trustees of the University of Illinois. Professor Stephen A. Forbes, State Entomologist. Dr. Otto L. Schmidt, President of the Illinois State Historical Library Board of Trustees. C. H. Rammelkamp, member of the Illinois State Historical Library Board of Trustees. . Mrs. Jessie Palmer Weber, Secretary of the Illinois State Historical Society and Librarian of the Illinois State Historical Library. J. Stanley Brown, member of the State Board of Education and Principal of the township high school at Joliet. H. E. Legler, Librarian Chicago Public Library. F. W. De Wolf, Director of the State Geological Survey. Edward P. Bartow, Director of the State Water Survey. Paul Hansen, of the State Water Survey. Corporation Administration. James E. Quan, Chairman of the State Public Utilities Commission. Archibald McKinlcy, Attorney for the Insurance Department. Labor and Mining Administration. Judge J. B. Vaughn, Chairman of the Industrial Board. John Bohlander, President of the State Mining Board. Oscar Cartlidge, Mine Rescue Station Manager. Thomas H. Devlin, State Mine Inspector. •J. W. Starks, State Mine Inspector. Lewis McGovem, member of the State Board of Arbitration. Leo J. Winniecki, member of the State Board of Arbitration. John H. Walker, President of the State Federation of Labor. Duncan McDonald, Secretary of the Illinois Mine Workers. J. A. Gulp, of the Brotherhood of Locomotive Engineers. J. O'Connor, of the Switchmen's Union. Agricultural Administration. Ralph Allen and C. C. Pickett, members of the Board of Directors of the Illinois Farmers* Institute. H. E. Young, member of the Board of Directors of the Illinois Farmers* Institute and Editor of the Farmers* Review. H. A. McKeene, Secretary of the Illinois Farmers' Institute. A. N. Kildow, State Inspector of Apiaries. Mr. Stone, of the State Beekeepers' Association. Finance Administration. John K. Segrave, Chief Clerk in the office of the Auditor of Public Accounts. W. E. Baker, Marion Watson and H. F. Nightingale, members of the State Board of Equalization. J. Frank Higgins, Printer Expert. Edmund J. Roche, Department and Institution Auditor in Governor's Office. Public Works Administration. Arthur W. Charles, Chairman of the Rivers and Lakes Commission. Le Roy K. Sherman, member of the Rivers and Lakes Commission. James B. Dibelka, State Architect. James P. Wilson and S. E. Bradt, members of the State Highway Com- mission. • Health Administration. Dr. John A. Robinson, President of the State Board of Health. Dr. C. St. Clair Drake, Secretary of the State Board of Health. Thomas Hogan, Attorney for the State Board of Health. W. Scott Matthews, State Food Commissioner. John B. Newman, Assistant State Food Commissioner. Fred C. Dodds, Secretary of the State Board of Pharmacy. James A. Ahem, President of the Barbers' Examining Board. Thomas Notter, Secretary of the Barbers' Examining Board. Thomas Casey, Treasurer of the Barber's Examining Board. Miss Adelaide M. Walsh, President of the State Board of Nurse Examiners. Dr. Thomas H. Whalen, President of the Chicago Medical Society. Dr. W. M. Honn, of the Legislative Committee of the Illinois Homeopathic Medical Association. Dr. J. V. Fowler, of the Chicago Medical Society. Dr. N. M. Eberhardt, of the Chicago Medical Society. Dr. C. D. Pence, of the Illinois State Medical Society. rJ' KiF' ^^^^^' ^^ *^^ Chicago College of Medicine and Surgery. Dr. Mrs. R. P. Barstow, of the Legislative Committee of the Illinois Homeopathic Medical Association. Dr. H. T. Hazleton, Superintendent of the German- American Hospital. As a result of these conferences additional information v^as secured as to the operation of the present machinery of State government. The tentative plans of the Committee vi^ere further considered in the light of this information and the discussion at these meetings; and some changes have been made in the tentative proposals 18 EFFICIENCY AND ECONOMY COMMITTEE. In its inquiries, investigations and public hearings, the Committee has not found it necessary to exercise its authority to subpoena wit- nesses, or to compel the production of books, papers and documents. It has in the main found the State officers and their agents ready to appear voluntarily, and to discuss the present organization and pro- posed changes, and to furnish information both orally and from their official records and reports. It should be clearly understood that the work of the Committee has not been undertaken with a view to the personal criticism either of particular officials or of present or past administrations. No smgle official or administration can be held responsible for the existing condi- tions as a whole. The fundamental difficulty lies in the defective or- ganization provided by law. So, too, the findings and recommendations of the Committee are made without reference to any personal or poli- tical results; but solely with reference to the inherent defects in the existing machinery and plans for a permanent reorganization of the State administration on a basis of efficiency and economy. DEFECTS OF THE PRESENT ARRANGEMENTS. As a result of its investigations, the Committee finds that a condi- tion of disorganization and confusion exists in the executive depart- ments of the State government which necessarily produces inefficiency and waste in the State services. The chart of State executive organiza- tion in Illinois, submitted herewith, will indicate this situation to some extent. This chart has been reduced to the sim.plest terms possible, in order to convey some definite impression. Any attempt to indicate differences of internal organization and all the inter-relations between different offices would have resulted in an utterly unintelligible diagram. But it is believed that the chart does emphasize the confusing number of separate offices directly related to the Governor; and the lack of any effective system of correlation or supervison. The main points in the indictment may be briefly summarized: There is unnecessary duplication of positions and salaries; not only in the chief officers of each separate bureau or board, but still more in their staffs of clerks and employees. But this is the smallest part of the loss. The work that is undertaken is not well done ; and costs much more for the results obtained than with a more efficient organization. Supplies in many cases are purchased in small quantities for each office or institution, which could be secured at lower prices if purchased in larger quantities on contracts based on competitive bids, as is done by the Board of Administration for the charitable institutions. The ab- sence of definite correlation and cooperation between the most closely s b @-^-_@___S__@__@__^ E— ^-^_@__^ 1 Governor 2 Lieutenant Governor 3 Secretary of State 3a Automobile Department 4 State Treasurer 5 Auditor of Public Accounts 6 Attorney General 6a Inheritance Tax Office 7 Superintendent of Public Instruction 8 Trustees University of Illinois 9 State Board of Equalization 10 State Tax Levy Board 11 State Board of Contracts 12 Printer Expert 13 Court of Qaims 14 State Canvassing Board 15 Voting Machine Commission 16 Civil Service Commission 17 Adjutant General 18 State Library Commission on y^^K^^' Extension Commission 20 Legislative Reference Bureau INDEX 21 Trustees State Historical Library 22 State Water Survey 23 State Geological Commission 24 Natural History Survey 25 State Entomologist 26 State Board of Education ol J^stees Southern Illinois Normal University ^ Trustees Northern Normal School ^ J^stees Eastern Normal School 30 Trustees Western Normal School 31 Corporation Department 32 Banking Department 33 Insurance Department 34 State Firemen's Association 35 State Fire Marshal 36 Public Utilities Commission ^Q 9^^^- J*^spection Department oo Charities Commission 39 Board of Administration a-t Charitable Institutions 40 Commissioners Illinois State Penitentiary 41 Commissioners Illinois Southern Penitentiary 42 43 44 45 46 47 48 49 50 Managers Illmois State Reformatory goard of Prison Industries New Penitentiary Commission State Board of Pardons State Highway Commission Canal Commissioners Rivers and Lakes Commission Game and Fish Conservation Commission llhnois Park Commission 51 State Architect 52 State Art Commission 53-56 Monument Commissions 57 Board of Architects Examiners zo ^J""^*ssioners of Labor An a-PJ?^^ Inspector of Private Employment Agencies OU-07 Superintendents of Free Employment Agencies oo factory Inspector 69 Industrial Board State Board of Health Lodging House Inspector State Food Inspector Food Standard Commission 74 75 76 77 78 79 80 81 70 71 72 73 Board of Pharmacy Board of Dental Examiners Board of Nurse Examiners Board of Barbers* Examiners State Mining Board Miners' Examining Board Mine Rescue Station Commission CK> o^wJ^S? Investigation Commission o2-iJ9 Mme Inspectors 90 State Veterinarian Live Stock Commission Board of Veterinary Examiners Stallion Registration Board State Board of Agriculture Illinois Farmers' Institute Illinois Horticultural Society Illinois State Poultry Association Illinois State Dairymen's Association inn Jll?"*'?^ ^*^*^ i-^v^ S*<>ck Breeders' Association 100 Illinois State Bee Keeper's Association 101 Inspector of Apiaries 102-105 Humane Agents 91 92 93 94 95 96 97 98 99 BEPORT OF THE COMMITTEE. ,9 related offices, necessarily leads to lo« =„A • n: •• only supervision provided\y law L rmos" o tf "*"' "°'"''- '^' boards and comn,issions. b/rdens I gIIo. t!thT'" f "'' necessary detail which nn «m„l. • ^- . , , ^"'O'^ w't" a mass of un- at the same time does „ot afford h 'J '"" "'""''"^'^ '^^"^'^. ^^ for the proper determination of ,. " " *' ^^-^ ^-^ *''' ^^-««es ministrative and iSative po icv T' ""P°''*'"* ''"'^*'°"^ ''^ ^^i" fail to provide the G ne'al As 'L. >.'"?"* ^-^"^^•"^t^ also advice to enable it to DerTorm •? ^.'' ^'^"'"'*' information or propriations or in ^^^:iZ^)^^:^'Zr hT "^ ^'^ are made and published thev :.r. '^^^^^ation. And while reports that the generaf publLt To r^ce^TaSr"' T"^ "^^^""-^ work that is done, and has no satkfr. '^*"^^<^'°7 mformation of the ity, or of discriminating b t^een fo'e Xr" V" 'f^ ^^^P^"^'^''" well and those who perform "Vooh; or n JaT all' ™ ''"''' ""''^ Lack of Correlation. an•sett^t^:ltf'c:3oTrd "^''^'^"^^ --' --^^ — ^-3^ ferent offices and instituTion wh , '°°P"^*«"' '" the work of dif- related functions/ ^heTa"' '." 1""^^' °"* ^''"■'- ^-^ ^'°^ely penitentiaries and relrLto^v f^^^ " '°'' ''" °' *'' ^*"*^ ■ schools. There are haHT^ u i°' ^^'^ °^ '^^ State normal terests; and aLt a score of sTna T f k"""^ "'^"^ ^^"™'»"-' - hoards dealing with m ntg pr Cs aid e' hf ?""' '"'^'"'^'"^ ^°- fices, each substantially ind'ep'end Hf each o^ %!?'r "* ''^- mmistration is distributed be ween a n, mhf / , • ''^ '^"^"'^^ ^^- officials and boards without concentrr. '^."^' ^"<^ ^PP°'"«^« vision of corporations and of hn '•^^Ponsibility. The super- utiHties is ex^rciseHy a sel, of'd-r'T ^"^"P^"-^^ ^^ P^'hc trol of public health is divided between ^^^ "™ents. State con- "eans of coordination. Nor i ^7^"^ °f ' "'* "° '^-«- -n..ng the work of the numeLt:ic:L°atindr^"^ ^°^ ''^^- 'n some cases unrelated funcSns ^r^ ^"^ '^^ "constitution, where The title of the Auditor of pX Acco f'^ "!;^" *^ ^^"^^ °ffi"->- control the auditing of all n„M ^^^"""ts md.cates that he should ■ty in this field is Ltd 'o„teX""l^ 'V^'u '^^*^'- '^' "^'^ - "» banks and building and oan aLo S ' ^^ ^'' ^^P^rvision over f^^om the audit of public accounts r'' " ^""'''°" "J"''^ ^^'^tinct f ould be the chief legal officerfo;alls;at'«;*' ^""'"^^ ^--«' ^«t special counsel an5 attorneyX;; b^^^Sed^ rr^: 20 EFFICIENCY AND ECONOMY COMMITTEE. partments, independent of the Attorney General and not subject to his control ; while this officer has been given supervision over inheritance tax administration, which should be primarily a financial rather than a legal matter. Scattered Offices. The lack of correlation between different State offices is further indicated and emphasized by the physical location of their offices. Thirty State officials and commissions have offices in Chicago, at a cost for rent and other expenses of $72,000 a year. These offices are scat- tered in different buildings, even in the case of departments whose functions are most closely related to each other. The present arrange- ments cause an unnecessary expenditure of funds for offices, reduce the efficiency of the State service in their dealings with each other, and add greatly to the inconvenience of the general public in tran- sacting business with these offices. No Standards of Compensation. Under existing legislation the compensation of State officers lacks any approach to uniformity on the basis of work done. Not only are there boards and officials who receive no salary, others paid on a per diem basis, and still others paid a fixed salary; but within each of these classes there is no attempt to adjust the compensation to the time given to the public service or to the duties performed. The State Food Commissioner and the Chief Inspector of Private Employment Agencies each receive $3,600 a year ; while the more important offices of Secretary of the State Board of Health and Chief Factory Inspector receive only $3,500 and $3,000. The Commissioners of Labor each receive $150 a year; while the members of the Board of Arbitration each receive $1,500 a year, and the members of the State Board of Pardons $3,500 a year. Inspectors in different departments doing a similar type of work receive salaries ranging from $1,200 in one de- • partment to $1,800 in another. The same variations in compensation for similar work exist for subordinate positions, where the salaries are specified in the appropriation acts. Overlapping Functions. Even where there is no direct duplication of work, the present laws frequently give powers to several departments under which each em- ploy agents for purposes which could be more efficiently and economic- ally performed by one agent at the same time. Thus the inspectors of the State Board of Health, the State Food Commissioner and the Chief Factory Inspector may each visit the same place for different purposes, and perhaps give conflicting orders ; while a single thorough inspection for all of these offices would be more effective and less expensive. REPORT OF THE COMMITTEE. 21 Irregularity of Reports. One source of confusion in the operation of the numerous State offices, boards and commissions is the complete absence of uniformity or regularity as to their reports. Most officers are required to report to the Governor; but in several cases reports are made directly to the General Assembly, and in some cases no authority is specified. There seems to be no rule followed in requiring reports to be made annually or biennially or at other intervals. Reports are required to be made by some authority in every month in the year except April ; and cover widely varying periods of time. The separate publication of reports for each minor office and the lack of central control over the printing of such reports adds much to the expense of printing, which now amounts to over $500,000 for the biennium. A large proportion of this could be saved by a more con- centrated organization and control over the official reports. Ineffective Supervison. As a result of the absence of any systematic organization of related services, there is no effective supervision and control over the various State offices, boards and commissions. It is true that the greater num- ber of these are under the nominal supervision of the Governor, through his power of appointment and removal. But the very number of separate offices makes impossible the exercise of any adequate control. To a very large extent each authority is left to determine its own action ; conflict of authority between two or more offices is often pos- sible; and if harmony and cooperation is secured it is by voluntary compromise rather than by the advice or decision of a superior author- ity. Under the present arrangements too many independent authori- ties have power to make expenditures subject to no effective central- ized control or responsibility. This situation necessarily leads to waste and extravagance. At the same time, the number of matters necessarily brought to the attention of the Governor — owing to the absence of intermediate super- vising officers — has burdened him with such a mass of details that he has been unable to exercise adequate supervision over such matters, while_ the very volume of such business brought to his attention takes time from more important questions of general policy. Moreover a number of the important departments and services arc not even under this limited supervision of the Governor. This is true of the officers provided for by the constitution ; and also of a number of boards chosen by election or by other methods, as the State Board of Equalization, the Trustees of the University of Illinois, and the State Board of Agriculture. In the case of the constitutional officers 22 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. 23 this lack of control extends not only to their primary functions, but also to other unrelated powers and duties imposed on them by statute. No Budget System, One of the most serious defects arising from the lack or correla- tion and effective supervision over the subordinate authorities is the ab- sence of any satisfactory budget of estimates as a basis for appropria- tions. The need for improvement in this respect was indicated in the act of the last General Assembly creating the Legislative Reference Bu- reau, which imposed on that bureau the duty of compiling estimates of appropriations. Under the procedure which has hitherto been followed, appropriations have been based in the main upon estimates and re- quests made by the head of each office, bureau or board, most of which officials have not been charged with a sufficient degree of responsibility to make them careful and sparing in their requests. The General As- sembly has been compelled to act upon these requests without sufficient time, means or opportunity for adequate investigation. The result has been that unnecessary appropriations have been made in some cases; while in other cases needed funds for important public services have not been provided. The State Constitution, in Article V, paragraph 7, provides that the Governor at the commencement of each regular session of the General Assembly shall "present estimates of the amount of money required to be raised by taxation for all purposes." So far as your Committee Is aware, no Governor has heretofore ever complied with this important constitutional duty. The failure to do so has undoubtedly been due in the main to the fact that the executive authorities as organized have not afforded the Governor the facilities needed to perform this duty. Tust as the number of minor offices and boards under his nominal sup- ervision prevents any effective control over their action; so too it pre- vents any adequate examination of their requests for appropriations on which the Governor can base his recommendations. The compilation of estimates for appropriations .requested to be prepared by the Legislative Reference Bureau is a step in the right direction; but this can hardly be considered an entirely satisfactory budget system. In the opinion of the Committee, the constitutional provision re- ferred to above contemplates that the Governor shall present to the General Assembly a detailed budget of appropriations recommended by hXm for the ensuing biennium, together with an estimate of the reven- ues of the State from sources other than direct taxation during the biennium, and a statement as to the amount to be met by taxation. The careful preparation of such a budget would be a potent factor in securing economy and efficiency throughout the executive departments. But to make this possible requires not only new methods of preparing and analyzing estimates, but also extensive reorganization and con- solidation of the executive departments, so that the estimates from each group of related services may be based on adequate consideration by competent officials. A new Governor will not be able to present such a budget at the beginning of the regular session of the General As- sembly; but he could do so probably by March L Imperfect Accounts. As a result largely of the absence of a proper budgetary system, the accounts of most of the various State authorities are entirely inade- quate. The accounts kept by the Auditor of Public Accounts cover all that is required by law, and appear to be carefully administered ; but they are limited to records of cash transactions and to keeping dis- bursements within the authorized appropriations. There is no record for the State as a whole or for most of the State offices of estimated revenues or outstanding obligations; and no attempt at preparing a balance sheet of assets and liabilities. Accounts and financial state- ments even for similar institutions and offices (such as the peniten- tiaries) are so radically different that comparison and deductions are impossible. Without an adequate system of accounting along similar lines there can be no effective control over appropriations or expendi- tures. Inadequate Advice on Legislation, With the ftcisting lack of efficient executive organization, both the Governor and the General Assembly fail to receive proper information and advice as to needed legislation. The constitution provides that the Governor shall recommend to the General Assembly such measures as he shall deem expedient. But no machinery has been provided by which the recommendations and proposals for legislation from the numerous list of officers, boards and commissions can be carefully weighed and sifted by officials charged with responsibility over a large field of administration. Conflicting measures are often proposed by different State authorities; and many proposals are presented from outside sources both on subjects within and without the jurisdiction of existing executive officials. As a result there is no harmonious legis- lative policy even formulated ; and the measures enacted not only lack coherence, but at times acts are passed at the same session which con- tain directly contradictory provisions. There is clear need for an executive organization which will make possible a well defined admin- istration program of legislation. W 24 EFFICIENCY AND ECONOMY COMMITTEE. Another result of the present methods of legislation has been the creation of many new and independent authorities, at an increased expense to the State, where in many cases the work might have been more efficiently and economically organized in connection with some existing agency. For example, a Fish Commission was established in 1879, and a separate office of Game Commissioner in 1889. In 1913, these two authorities were consolidated under the Game and Fish Con- servation Commission ; and the appropriations for this body were $50,- 000 less than those made two years before for the two separate authorities. Irresponsible Government. Finally under the present arrangements while the general public is deluged with printed reports, it fails to receive reliable information in digestible form as to the conduct of the State administration, and is unable to locate definite responsibility for negligence or misconduct in public business. Public opinion usually considers the Governor re- sponsible for the conduct of the State government; but with the lack of effective executive control over the subordinate officials this opinion is not fully justified. At the same time, the popular conception of the Governor's responsibility, in the opinion of this Committee, is based on a sound and just principle; and the machinery of State administration should be so organized as to enable this conception to be adequately realized. TENDENCIES TOWARDS CONCENTRATION. In Illinois. During the past few years several laws have been enacted in Illinois which show some realization of the need for a more efficient organiza- tion of State administration and suggest the lines on which a more com- prehensive readjustment may be brought about. Of special significance was the reorganization in the management of the State charitable institutions, which consolidated one of the larg- est and most important branches of State work under the Board of Administration. Under the former methods when each of the seventeen institutions was under a separate board of trustees, the lack of ef- fective organization and supervision resulted in waste and inefficiency in the management of the institutions, and in constant rivalry between the several institutions, while neither the Governor nor the General Assembly had the information or means to exercise adequate control. By the Act of 1909, all of the charitable institutions were organized in a single department under the Board of Administration directly responsible to the Governor. The experience under this system has REPORT OF THE COMMITTEE. 25 clearly demonstrated its greater efficiency and economy in the admin- istration of these institutions. In the first year, there was a saving of $250,000; and even with increasing prices the expenses for the four years under this system show a reduction of $400,000 from the per capita cost for the last year under the former methods. This concen- trated organization has not only enabled the Governor to control their management, but it has also given greater assistance to the General Assembly, both in regard to appropriations and in legislation for these institutions, and still further it has given the general public more definite and reliable information as to the purposes and work of the State charitable institutions. Other illustrations of the tendency towards a more concentrated organization may be seen in the Game and Fish Conservation Com- mission, established in 1913, which has combined two closely related services; and in the Public Utilities Commission of 1913, which has united the functions of the former Railroad and Warehouse Commis- sion with similar powers over other public utilities. The State Aid Road law has also established an administrative organization for con- necting the work of the State Highway Commission with the local highway officials by means of the new county superintendents of high- ways. In Other States. This tendency toward a more efficient and concentrated adminis- trative organization is also to be seen in most of the other states ; and in many states it has already gone much further than in Illinois. More than half of the states have consolidated the management of their charitable or correctional institutions; and in many states both of these classes of institutions have been united urider one control. A number of states have reorganized their educational authorities, con- solidating the management of state institutions. Many states have a more concentrated organization of agricultural authorities than in Illi- nois; and several states (New York, Ohio, and Washington) have in recent years established a comprehensive and consolidated department of agriculture. Several states ( New York, Ohio, Kansas, and Wis- consin) have combined the various labor authorities into a single de- partment. About two-thirds of the states have concentrated their tax administration under the control of a small appointive tax commission. Such reorganization and consolidation has thus far, for the most part, been accomplished in particular branches of state administration ; and has been urged by those interested in each field, apparently without any conscious effort at a general reorganization of state administra- tion. Nevertheless, the tendencies have been more marked in some 26 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. 27 states ; and in those there has perhaps been some interaction and inter- relation between those at work in different fields. New York State, the largest and with the most extensive adminis- trative organization, has perhaps done most in this direction. During the past ten or fifteen years there have been organized in that state comprehensive departments of education, agriculture, labor and health. Ohio has established consolidated departments of agriculture, labor and charitable and correctional institutions, and has gone further than any other state in centralizing tax and finance administration. Wis- consin has consolidated the administration of labor laws, charitable and correctional institutions and state revenues. Many other states have established consolidated departments in one or more fields. Efficiency and Economy Commissions. Within the past two or three years a more definite effort has been undertaken in this and a number of other states to plan and work for a more comprehensive reorganization and consolidation of state ad- ministration ; with a view to greater economy and efficiency. Commis- sions or committees for this purpose were established in Massachu- setts and New Jersey in 1912 ; and in New York, Pennsylvania, Min- nesota, and Iowa in 1913, as well as in Illinois; and the problem has also been attacked in a less official manner in California, and perhaps in other states. With these active efforts, all aimed in the same general direction, the isolated tendencies have begun to develop into a distinct movement for a general reorganization of state administration. The Massachusetts and New Jersey Commissions have each issued several partial reports, proposing the consolidation of several groups of related bureaus. The most important of these has been the plan of the Massachusetts Commission for the reorganization of the adminis- tration of charitable and correctional instituions. The New York Committee, appointed by Governor Sulzer, proposed a consolidation of the prison authorities, and urged the need for reorganizing the man- agement of the charitable institutions in that state. In Iowa and Minnesota much more comprehensive plans have been prepared. The investigators employed by the Iowa Legislative Com- mittee have submitted a report proposing a radical reorganization of state government, including constitutional as well as statutory changes. In general this proposes a small number of executive departments each with a single official at the head. The Minnesota Commission, appointed by Governor Eberhard. has also prepared a general plan of reorganization, limited, however, to those changes which can be made by the legislature. This, like the Iowa plan, is based on a limited number of departments, for most of which there is proposed a single salaried director and an unpaid ad- visory board, but there are some modifications from this general plan A Board of Civil Service and budget system are also included in the general scheme. This plan will be presented to the Minnesota legislature in January 1915, in a single bill for a civil administration code. Municipal Administration. Recent developments in the reorganization of municipal govern- ment in the United States also show a strong movement towards the more systematic and efficient organization of the administrative services This general tendency can be seen in nearly all of the various new forms of government proposed. It can be seen in the city charters and general laws which concentrate authority in the mayor, as in the Cleveland "federal plan" of 1891, the New York law of 1898 for cities of the second class, and in the more recent charters of Cleve- land and St. Louis. In the various types of commission government for cities, the most common feature is the organization of municipal services in a small number of departments (generally five, sometimes Uiree or seven) each under the direction of a single commissioner. 1 he still more recent city manager plan of municipal government pro- vides for the same organization of administrative services under a few department heads responsible to the city manager. The United States Government. The National Administration of the United States Government has been organized from the beginning on a more systematic plan than that of the states. There are now ten executive departments, each dealing with a more or less closely related group of services; and together looking after substantially the whole system of national ad- ministration, which in magnitude, importance and expense far exceeds that of any of the states. The head of each department is appointed by the President, by and with the advice and consent of the Senate and these department heads form collectively an unofficial cabinet of advisers to the President, which meets regularly for consultation on matters of special importance and common interest, and in which there is discussed the larger questions of administrative and legislative policy These departments and their chief officials are as follows • te'^^'^^T^ °^ S*^*« Secretary of State SepartS^en^'^? w'^* ^^^'^'^^ ^^ the Treasury Den^Sm^n! \ ^^I- Secretary of War* ' Postnffl^. n ^^ i"'*'^^ Attorney General ^H^Z^f^^^'l^^l} Postmaster General Department of the Navy Secretary of the Navy Separtmen nl r ' ^"''"^' ^'^'^'^^ ^^ '^^ Inte'rior Department Sf fT""^"" Secretary of Commerce Department of Labor Secretary of Labor I' 28 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. 29 i }' 1 This organization as a whole stands in marked contrast with that of the State administration in Illinois and other states; and there can be no doubt that the greater efficiency of the national administration than that of the states is in large measure due to the more systematic or- ganization, the more definite correlation of related services, and the more effective supervision of the various bureaus and divisions by the department officials. Foreign Countries. Practically all of the civilized governments in the world have like- wise organized their public administration in a limited number of important departments, each under a single official, who has super- vision over the various related services in his department. This general plan is followed in the central government of all of the most important countries, as in France, Germany, Great Britain, Russia, Italy, and Spain. It is followed in the various states in the German Empire, and in the large British self-governing colonies — as in Prussia, Bavaria, Saxony, Canada, Australia, and South Africa; and in the British Do- minions it is also used in the several Australian States and Canadian Provinces. It is also the plan of organization adopted in the less important countries of Europe and in South America — as in Switzer- land, Holland, Belgium, Portugal, Brazil, Argentine, and Chili. For example, in France, the highly centralized administrative sys- tem is organized under the direction of a cabinet of twelve ministers, as follows: Foreign Affairs, Justice, Interior, Finance, Public Instruc- tion and Fine Arts, Public Works, War, Marine, Commerce, Agricul- ture, Colonies, and Labor. Even in Great Britain, where there is a good deal of the same ten- dency as in the American states towards the multiplication of separate authorities, the central administration is under the general control of a cabinet of twenty ministers; and many of the offices commonly sup- posed to be independent are under some supervision by the Treasury or one of the other important departments. GENERAL PRINCIPLES AND PURPOSES OF THE COMMITTEE'S PLANS. Proposed Departments. In order to secure efficiency and economy in the executive organi- zation, the Committee proposes to apply to the State services, so far as can be done under the present State constitution, the general principles followed in the organization of the executive departments of the United States Government. These principles are also followed in the administrative organization of all the important governments in the world, in the recent plans for the reorganization of State and munic- ipal governments in this country, and in large private business enter- prises. To secure this result will involve the reorganization and con- solidation of the more than a hundred separate State offices, boards and commissions into a limited number of executive departments, the chief authority in each department to be appointed by the Governor, with the advice and consent of the Senate, and to be responsible to the Governor for the conduct of the department. The proposed departments and their principal divisions and bu- reaus, with their chief officials, are as follows : Department of Finance, under a State Finance Commission, to consist of a State Comptroller, Tax Commissioner, and Revenue Com- missioner, to be appointed by the Governor and Senate, with the Audi- tor of Public Accounts and State Treasurer ex officio. Each of these officials will be in charge of a particular division, with the finance commission exercising specified powers of supervision over the whole system of finance administration. The Comptroller will be charged with the preparation of a budget, and with supervision over expendi- tures and the installation of accounts of State officers. The Tax Commissioner will deal with the assessment of property for taxation ; and the Revenue Commissioner will administer the inheritance tax, automobile licenses and perhaps other State revenues. The Auditor and Treasurer will in the main continue their present functions, with the Auditor's auditing powers increased. Department of Charities and Corrections, to include the present Board of Administration for charitable institutions, a Board of Prison Administration for the penitentiaries and reformatory, and the Chari- ties Commission with powers of inspection and recommendation over both classes of institutions. Department of Education, to include the State Superintendent of Public Instruction, a single Normal School Board, the board of trus- tees for the University of Illinois, the State Library, a commission on natural resources, and a general board of education with advisory pow- ers to coordinate and harmonize the several educational agencies of the State. Department of Public Works and Buildings, under a Public Works Commission of three members, one to be Commissioner of Highways, one Commissioner of Waterways and one Fish and Game Commis- sioner; with bureaus for each of these services, and also other bureaus under the Superintendent of Buildings and Grounds, the Superintend- ent of State Parks and the State Art Commission. Department of Agriculture, under a Secretary of Agriculture, with bureaus under a Superintendent of the State Fair, a Director of ^^^^Sf^^F^^ 30 EFFICIENCY AND ECONOMY COMMITTEE. Farmers' Institutes, a Live Stock Commissioner (who should have supervision over the State Veterinarian, the board of veterinary exam- iners, the humane agents and the registrar of pedigrees) and the In- spector of Apiaries and Nurseries. ^ Department of Public Health, under a salaried Health Commis- sioner, and an unpaid State Board of Health, with a food inspection bureau under the Food Commissioner (or inspector), with examining and licensing boards for physicians, pharmacists and dentists. Department of Labor and Mining, under a Commissioner of Labor and two deputies, who should act as a board in adopting rules and regulations and in deciding appeals, with bureaus of statistics, employ- ment, inspection and compensation, and a mining division under the State Mining Board. Department of Trade and Commerce, to include bureaus under a Commissioner of Corporations, a Commissioner of Banking, the Insur- ance Superintendent and the Public Utilities Commission — the Chairman of the Public Utilities Commission to act as head of the department. Department of Law, under the Attorney General, with provision for counsel and attorneys for particular departments to be appointed by the Attorney General with the consent of the Governor. Department of Military Affairs, continuing the present organiza- tion of the State militia. The several election boards now provided by law should also be consolidated into a single board of elections ; and this with the Secre- tary of State and Civil Service Commission will be outside of the main executive departments above outlined. The Committee also recommends a revision of the laws relating to state contracts and to official reports, the latter to require reports from all State officers, boards, commissions and departments before the regular session of the General Assembly, and to provide for a sum- mary of these reports with other information relating to the State gov- ernment to be prepared and carefully edited for publication in an of- ficial State Manual or Blue Book. General Considerations. The organization of each of these proposed departments will be discussed more fully in the second part of this report with more specific references to the changes from the present arrangements. It seems advisable, however, to present here some of the general consid- erations underlying the proposed plan as a whole, in order to make clear the main purposes of the Committee. » ^ . 21 / 22 / \ r \ 23 24 r I 2_ ]_ 25 31 / 32 34 /^ \ 33 36. ^3 (.FT 64 11 67 £8 71 1 / 7 \ \ 72 73 74 7« 75 77 B 1. Governor 2. Lieutenant Governor 3. Secretary of State 4. Auditor of Public Accounts 5. State Treasurer 6. Attorney-General 7. Superintendent of Public Instruction 8. Board of Elections 9. Legislative Reference Bureau 10. Civil Service Commission IL Department of Finance (State Finance Commission) 12. State Comptroller 13. Tax Commissioner 14. Revenue Commissioner 15. Superintendent of Printing 21. Department of Trade and Commerce 22. Commissioner of General Corporations 23. Commissioner of Banking 24. Commissioner of Insurance 25. State Fire Marshal 26. Public Utilities Commission INDEX. 27. Grain Inspection Department 31. Department of Labor and Mining 32. Bureau of Statistics 33. Bureau of Employment 34. Bureau of Inspection 35. Bureau of Compensation 36. State Mining Board 41. Department of Health 42. Bureau of Vital Statistics 43. Bureau of Food and Drug Inspection 44. Board of Examiners of Physicians 45. Board of Pharmacy 46. Board of Dental Examiners 51. Department of Military Affairs (Adjutant General) 52. Surgeon General 53. Judge Advocate 61. Department of Agriculture 62. Superintendent of State Fair 63. Director of Farmers' Institute 64. Inspector of Nurseries and Apiaries 65. Live Stock Commissioner 66. 67. 68. 71. 73. 74. 75. 76. 77. 81. 82. a-t 83. u-w 91. 92. 93. 94. 95. 96. State Veterinarian Stallion Registrar Humane Agents Department of Public Works (Board of Public Works) Commissioner of Highways Commissioner of Water Resources Commissioner of Fish and Game Superintendent of State Parks State Art Commission Superintendent of Public Buildings Department of Charities and Correction (State Charities Commission) Board of Administration State Charitable Institutions Board of Prison Administration State Correctional Institutions Dep^tment of Education (State Board of Education) Trustees of University of Illinois Normal School Board State Commission on Natural Resources State Library Historical Commission REPORT OF THE COMMITTEE. 31 % In the first place this comprehensive scheme of reorganization has been formulated in preference to a more limited plan dealing only with some groups of offices and departments, in the belief that the general survey is more likely to take all factors into consideration, while a partial study might lead to proposals for the offices considered which would conflict with the best arrangements for other offices not taken into consideration. In the second place, this general plan has been prepared with refer- ence to the existing authorities and their present powers and duties. There has been no attempt to formulate an ideal scheme of State activi- ties, or to propose extensive changes in the substantive law. In some cases where existing authorities seem to be clearly of no value, their abolition is recommended. But for the most part provision is' made for continuing the present services under what it is believed to be a more effective organization. Nor has a strictly uniform plan of organization been proposed for each department or group of services, such as characterizes the French system of administration. This might be advisable in organizing an entirely new system ; and may be worthy of consideration at some time m the future, with the further development of State administration in Illmois. But some variation in the organization for different purposes seems better suited to existing services and present conditions in this State. At the same time the confusing complexity of the present chaos of organization may be materially simplified; and it is believed that the variations in organization proposed are adapted to the different lines of work. The plans proposed include single officials for some purposes, and boards or commissions for others. The number of boards, however, are much fewer than at present; and the boards proposed will be either composed of salaried members giving full time to the service, or of unpaid members, with a few cases of ex officio membership! Boards whose members are paid small salaries and are expected to give only part of their time to their public duties are not recommended • and It IS proposed that such boards be either abolished or merged with other authorities. Nor does the Committee approve of statutory provisions requiring tne representation of more than one party on administrative boards ana commissions. Such a requirement tends to bring about bi-par- tisan rather than non-partisan appointments; it makes it possible for a governor by the use of patronage to exert influence over the minority party in the General Assembly; and at the same time H reduces the dS/i i'"^ ""^ ^^ ^?_T"°^ ^°^ ^^ ^cts of such boards, without aetinitely fixmg responsibility on the minority members, or their party 32 EFFICIENCY AND ECONOMY COMMITTEE. 4 On some boards, such as the Charities Commission or unpaid educa- tional boards, it is especially desirable that appointments shall be made without reference to party affiliations; but it is believed that this result can be better attained by custom and the force of public opinion than by an express provision in the law. The purpose of the Committee has also been to propose boards only for functions where consultation and consideration of several persons is advisable; and single officials are recommended, in all cases to be in charge of distinctly executive work. When boards are authorized the Chairman should be designated by the Governor or by law. From another point of view, the plans proposed also fall between two possible extremes. While they call for a large number of impor- tant changes, they are not presented merely as a scheme for the distant future. They have been framed with reference to present conditions in this State; and it is believed they are adapted to prompt adoption and execution. At the same time it is recognized that some of the proposals may meet with serious opposition, and it may not be feasible to carry out all the changes at the next session of the General As- sembly. But it is believed that a substantial part of this program should be carried out at once; and the remainder should be put into force at as early a date as practicable. After a more specific discussion of the present authorities and the proposed plans for reorganization for each of the groups of State agencies, there will be considered in Part III the results in the way of greater efficiency and economy to be expected from the general system of organization herein proposed. hi PART II. FINANCE ADMINISTRATION. Present Arrangements, Under the existing laws of Illinois the machinery for the assess- ment and collection of taxes and other State revenues, and for the con- trol over expenditures, is divided between a large number of State and local officials, with no systematic organization or supervision of finance administration as a whole. General property taxes are for the most part assessed, and are entirely collected, by local officials, subject to no effective supervision ; and the assessment and collection of the inheri- tance tax is also largely in the hands of local officers. A considerable number of State officials have powers and duties of some importance in this field — including the Governor, the Auditor of Public Accounts, the State Treasurer, the Secretary of State (as receiver of corporation fees and automobile licenses,) the Attorney General (in supervising the inheritance tax) and the Superintendent of Insurance (as receiver of insurance fees and taxes.) The State Board of Equalization is a cumbersome body of 26 members, elected by congressional districts, with limited powers. There is also an ex officio State Tax Levy Board, and a Court of Claims; while the department and institution auditor acts as the agent of the Governor in approving certain bills before payment. The Legislative Reference Bureau is authorized to compile requests for appropriations from the various State departments and institutions. Inefficient Results. With the present arrangements, the assessment of property for taxation is notoriously inefficient and unequal ; the collection of public revenues is lax and the cost of collection is unequal ; there is no ade- quate machinery for preparing a comprehensive budget of estimated revenues and proposed expenditures as a basis for appropriations ; and there is no satisfactory system of accounting. As to the assessment of property for taxation, the valuations of real estate have lagged far behind the increase in true values, and the aver- age valuation of lands in some counties are double the proportion of true value assessed in other counties, as estimated by the U. S. Census ; the assessment of tangible personal property is largely guesswork and tor some classes of such property is not more than five per cent of reliable estimates of true value; whUc the assessment of intangible 34 EFFICIENCY AND ECONOMY COMMITTEE. property in most parts of the State can fitly be called a farce TV general situation is true hntVi «^ ♦u ^^icu a larce. This and b, ^e State Wd'XlH2Lr:rjL f L^ss^^S Of taxafon and gross inequalities in distributing thXdTnTtlLS" estinitedat'sS)^'"'''"^ ^'^f '*" *" ^°"*<=t«''« l'°<"^« =>'« roughly eUnZt *^' * ^•^^- ^ '*'■«« P»rt Of this could be saved by ehmmatmg unnecessary columns showing in detail the severaf v^.,; ptc: :f retfeS: a^d "J "^^! "i^^ ^^^^ ethTpa;:;t pjcce oi real estate and reducing the fees accordingly the aS^rt'o1rx« ""^'^ tax collectors were adjusted at a time when Tges Xwed var^" ^''7'"^'* '°*"- *''*" ^' P^'^^^' »nd the percent- rffher tT ^ ^ accordmg to an arbitrary classification of counties citector V" Tr°" '° ""^ ^•"°""' °f *-- ^°"«<=t-d by each collector. A readjustment of these commissions should make possible a considerable saving to the State and to the local taxing dUtSs conserv!t-"*r'* °" "^ «=°"«ctions in the hands of collectors may be ther.'^Jc*'!r'''"^"^//''""**^^ °^ ^^''^ ^^^^^^^J a« not collected; and to tL c:f ? %^ ^^^ °^ '^''^y '" '^^^S settlements and payments ^h?rif=. ! Treasury. The cost of the local administration of the lecteH^?-^'' has averaged more than ten per cent of the amount col- Lhn»t ; / ^"^^ *^°""'y ^^^ •''"=*' "^o^t of collection has averaged about twenty per cent; and in some counties the cost of collection has Z.J. """^u ^' *^ ^"^ '^^^'^^'^- The expense of administration of ioLTr ""^K ' ''""'^ ^'" ^*' ^^*" o^«' 15 per cent of the amount thTf^f I " P^"^ °"* **^ ** 8^""^' '«^^^n"« of the State, while the total receipts are paid into the State road fund. nn,<.H^f *"Tf* *'u* carefully analyzed budget of revenues and pro- onltfnnT . " ^" ^''^^'''' ''""" P^«P'''«s proposed expenditures, which should be subjected to close scrutiny by competent and responsible officials charged with authority in the administration of the State finances and S te Govlt. ^^"'^ ^"'""^ ^^* *^ '-'^^^ -ommenl'ti:::^ The present system of public accounts for the State is a record of ^^IT V^*=«°- «««>«- «»<» disbur^ments under ^^^i,;- mtion Items, with a control of disbursement. «, that warrants a« o^ lEPORT OF THE COMMITTSE. 35 issued beyond the amounts appropriated. These records appear to be carefully kept and reported. But the present classification of receipts and disbursements reflects only the legal responsibilities of the auditor and does not adequately show the sources of revenue or purposes of expenditure. There is no adequate audit of State revenues and no effective control over the expenditures of many State offices and insti- tutions. There are no accounts showing accrued revenues or liabili- ies, and no adequate inventory of permanent property; and without these it is impossible to prepare a balance sheet showing the financial condition of the State. Finance Administration in Other States and Countries. Most of the other states have established a more efficient system of tax administration under the control of a tax commissioner or a small appointive tax commission. The first definite proposal for such a tax commission was made by the Illinois Revenue Commission of 1886; and a similar plan was recommended by the Special Tax Commission of 1910, and has been endorsed by Governors Deneen and Dunne. But while all of the larger and more important states and many of the others have now adopted this plan, as yet no effective action in this direction has been taken in the State where the proposal was first made, buch tax commissions have been especially successful in Wisconsin, Michigan, Kansas, and Ohio; while in Kansas, and still more in Ohio, tne local machinery of assessment has been still further centralized. Many other states have also in other respects more effective meth- ods of finance administration than Illinois, by vesting larger powers over the keeping and auditing of accounts, and other revenues and expenditures and providing improved budget methods under the State lax Commission or the State Auditor or Comptroller. In the United States government and in nearly all foreign countries, as well as m many American cities, there is now provided a well organ- ized department of finance, which exercises general supervision and control over the administration of public finances. While there is theTf r ^ "^^"^I^^^ ^" *^^ ^'^temal organization of such departments, they all agree m the general principle of a central finance department. Proposed Finance Commission. tin?nf ^^"'"'"'^.^'''^ Economy Committee recommends the organiza- Stl su.: 'T"'rT ^^'^ ^^P-^ent of Finance, under th'Jge" SIZi^Tt' "r^""'' "^"^"^^ Commission, to consist of a sLe appXS bv tZr ^°™"^^^^^^-,^^' ^^^ a Revenue Commissioner, to be and to ; 1 i^ Governor, with the advice and consent of the Senate and to mclude also the Auditor of Public Accounts and L stte I ^ EFFICIENCY AND ECONOUV COMMITTEE. «;-;« This form of organization is proposed so as to the hands of appointWe f^^^^- Commission shall exercise in the It IS proposed that the r mancc reeulations, forms, main jurisdiction in approving and P--"^ .^'^l^ ^nd reviewing instructions and systems of accour^;^^^^^^^^^^^^ ^^ ^,^ original «s«^»^°*^ ^^^l'" ^ax L^V Board, as well as some of the Court of Claims and the State ^^^fX f ° ' ,i ^f ^hich it is pro- functions of the State Board of Equalization all posed to abolish. . . . . important pow- Each member of the ««"f'^;^3jfcotp^'3er. iiU be chair- ers in charge of a special d.vison Jl^^ ^tate ".o P .^^^ ^f ^ man of the Commission and -'» ''^ ^.^J^^^^^^^^^^ tL Governor, budget of revenues and f T"*^^" . ^extS^res, with the prepa- . with supervision over salaries and 0*f J^P^3^„';„to the business ration and installation of »«°"f ' ^"^J'^^^X c^^^^^ will methods of State offices and institutions. The 1 ax ^^^^ exercise supervision over local a;se^«o«' ""^^'^J X, puWic utilities, ments of railroad property, and ^^X^^X by the Finance Corn- corporations and associations, ^"''?*<=*;°";'J7^f direct control over mission. The Revenue Commissioner ^'" J^'^^^,,;!, Ucenses. to the administration of the inheritance tax and automoD which may be added other State «venues_ treasurer will in the The Auditor of Public Accounts and t^ Stat" |^^ should main continue their present functions. J^e ™o pu ^^^^ be extended over the auditing of all State offic^>«.^"f ^^ g^^^e be authorized to audit the ''"^""^ "^/"^^^^ t^^ds will also be in- Treasurer's control and -^ "f l^^J lidln to Ae State Treasury creased by requiring such funds to ^e ?»'<*'« «• jem. . more fully and more promptly than under the presen y Local Administration. finance administration. The Some changes arc also proposed f]°^^J'^^^^^^^^i and collection Committee believes that a system of ^°«"\*%*;^7,„t .y^tem of town of property taxes will be more '^"f^^^^J .^'^^\ovIt\es. But its assessors and collectors now "^f '^^/j -X, „nder which. any definite proposals present only °P -^^^^jX^ »« county officers, county or any township may t"'^^^^' *J^^^^^ ..cessment and coUec- At the same time it is P~P°*1*° ^"*" ,"„« Commissioner, tion of the inheritance tax ^l^^lJ^'^^^^'lZri. of Uxation. to consist It is also proposed to establish ""«^ Ji"* ^^„y and the county of the chairman of the county board, the county KEPOtT OF THE COMMITTEE. 37 treasurer, to take the place of the county boards of review and to pass on the validity of local tax levies. In Cook County the county board of review as now organized, will act as the county board of taxation. Provision is further made for a county controller, for installing a system of accounts in county offices, and for the regular audit of such accounts by the Auditor of Public Accounts, and for the release from liability of such officers and their bondsmen after such audit. Financial Results. The abolition of the State Board of Equalization and the Court of Claims will offset the salaries of the new officials proposed; but there will be added expenses for experts and clerks if the new system is to be made thoroughly efficient. The saving proposed in the ex- tension of taxes, and the interest on tax collections should amount to more than $500,000 a year, and about half of this amount may be added to the State Treasury. The centralization of inheritance tax adminis- tration should lead to a large reduction in the present cost of admin- istration, which may be roughly estimated at $100,000 a year. But the greatest gains will come from the increased revenues under a more efficient system of revenue administration; and the reduction in ap- propriations and expenditures for the State as a whole under a careful budget and accounting system such as is proposed. Proposed Finance Bill. To carry out these recommendations will require a large number of changes in the revenue law and other laws relating to public finances. It would be difficult, if not impracticable to make all these changes in a single bill, or in a series of bills, dealing only with the administrative machinery. The Committee has, therefore, had prepared a compre- hensive finance bill consolidating and codifying the various laws into a single act. This has the additional advantage of making possible a simplification of these laws by eliminating obsolete and conflicting pro- visions, and by a rearrangement of provisions, which should make the law more intelligible, both to the officials charged with its enforcement and to the general public. For example, the complicated phraseology of the Juul law has been rewritten, so as to make its meaning, as inter- preted by the Supreme Court, more readily understood. It is of course impossible in this revision of the finance laws to make any fundamental changes in the system of taxation, on account of the requirements of the State constitution as to uniformity. But there is proposed a further centralization in the assessment of the property of corporations and associations by the Tax Commissioner, as m Ohio and other states, so as to include the value of the property of foreign corporations and associations which is not covered by the pres- ent State assessment on the capital stock of Illinois corporations. 38 EFFICIENCY AMD ECONOMY COMMITTEl. tFFICIENCy AND ECONOMY COMMITTEE. 99 Accounting. ^ . ,• » In addition to the proposals to establish the administrative «»«chmenr and authority for an adequate system of public accountmg m the State, the Committee has had prepared a special report on the Pf«=s«"t ^*=- counting methods, a general basis for an accountmg ^^t;"?' *"^ * detailed classification of accounts for the penal mst.tut.ons of the State, as an illustration of the general plan. These reports by G^orgtE.. Frazer, Certified Public Accountant, and Spurgeon Bell, formerly Sec- retary of the Chicago Commission on City Expenditures are printed as appendices to the report of the Committee ; and special attentionjs directed to them as examples of what is needed to provide satisfactory public accounts. The general basis for an accounting system ca^^s attention to the requirements which should be met by an adequate accounting system, to be formulated under the direction of the pro- posed finance commission; and the classification of accounts for the penal institutions, which has been based on a comprehensive sunrey of the present accounts and business methods of these institutions, is m such detail as to be available for the use of the P™P°««ade ^ "J Siese appropriations do not appear in the expenses of the several offices for which they were incurred. At the same time, much printing, b.nd- ng,"tationery and fuel is purchased by the several departments, offices and institutions, and paid for out of their ^^P^^^^e appropnaUons. A^ a result the reports of expenditures from appropriations for &e several offices and institutions do not show all their expenses; "or do the re- Dorts of expenditures from the lump appropriations for pnntmg, bind- S, s^tion'ery: and heating and lighting show all the expenses for these purposes. Office furniture and equipment, telephone service and other office supplies and services are now purchased separately by each office or board. For example, there are thirty-five different State offices in the State Capitol, and there are fifteen other State offices in the city of Springfield, each of which makes its own contract for telephone serv- ice. The regular rental for this service amounts to $4,600 a year. A branch telephone exchange for all the State offices in and near the State Capitol would probably be more economical and efficient. Responsibility and control over printing, binding, and stationery supplies should be simplified and centered in a Superintendent of Print- ing, who should actively cooperate with the printing establishment in the State Reformatory. Fuel, light, telephone service and office furniture and equipment for State offices should be concentrated in the Superin- tendent of Buildings. General contracts for all of these services and supplies should be based on competitive bids, and made by the proposed State Comptroller, with the approval of the Governor. Lump approp- riations to cover these contracts may be continued; but the expense incurred for each department or office should also be charged to it, and included in the report of its expenses. There should also be a general revision of the State Contract law, which in many respects is obsolete and inoperative. CHARITABLE AND CORRECTIONAL INSTITUTIONS. Present Management. The State of Illinois now maintains twenty-two charitable and cor- rectional institutions, for the care of defective, delinquent and other dependent classes and for the confinement of convicted criminals ; and several other institutions have been authorized by the General Assem- bly. Until a few years ago each of these institutions was under the control of a separate board of trustees, managers or commissioners, with some supervision in most cases by an unpaid State Board of Public Charities. But by an Act of 1909 all the "charitable institu- tions" were placed under the direct management of a single salaried Board of Administration, and subject to the visitation and inspection of an unpaid State Charities Commission; while the correctional inst- tutions remain under the control of separate boards. These two classes of institutions, which are in many respects similar in their func- tions are thus organized on radically opposing systems of management, Which permit of a direct comparison of the results of the different methods. For the "charitable institutions," which includes some institutions of an educational and reformatory character, there is a single board of management, whose members arc paid to give their full time to the i I I »■ ■ i ! ^j^S.* EOTCIENCY Ain> ECOHOMY COMMlTtEE. I J 40 • *^^,c«rpr for all of these institutions. One member of the Boara oi u^s are regularly pur- business manager for all of the «f *f J'^^^'j^J^ bijs; and a uniform chased for all of the institutions on comp^^* ; ^^, of the system of accounts and P^.^^^ases is mamtamed .^ ^^ B^oard of Administration .s required to b^ ^^^ ^^^^ ^^^^^^ care of the insane, who form the largesx gru y tutions. . . . , , _t-„i;,«,i svstem of administration, there In addition to this highly c^trM^dy^^^^^^^ ^^ ^^^^ are elaborate provisions for **= "^^f "\^3t,^t^^^ Uself ; secondly, by institutions: first, by the Board of Admimstrat .^ ^^^^^ ,he unpaid Charities Commis^oj^^^^^^^^^^ J^ ^^, .„,,, live secretary ; and thirdly oy locai "« t"*'°"- , « „« Ucc than six boards having au- In marked contrast, there are no less ^J^.^^^^^,;^_ There thority over the State ^efo™'^^"'^ ^"^^^^tn^^ »«d a board is a separate board of ^^"'"'^f'^"*'^^*^^^ *^t^^^^^^ their respective of managers for the refonnatonr, m J^^^^* ^^^^ "uectively form a institutions. The members "^ ***^^^^^Sn has charge of the Board of Prison Industries. ^'^'''^ll9?^^Zr insane criminals, construction of a new penUenOary and ^o^^^^^^ ^^.^ ^, Governor There is also a State Board o^/»^J'f ^^^^^ of parole for the two on applications for pardons ^«f f ^ as a boa^d p ^^ ^^ ^^^^^^^ State penitentiaries. .^^--^^^^^\l^ l^^^l, n«de articles by other , tion, to determine prices to be P^^'^ '"^^^ PJ ^ ^^^^ers of these State institutions and offices. Except *e 'ast, the ^ boards receive salaries of v»^-^ -^den, or, nor loes the law a year; but the salaries paid are no ^uffic^n^ . ^^^.^^ require, the members to give their ^f'^^'^^Z correctional institu- Under the present arrangements, each of these CO ^^ ^^ tions is organized independently « *e «th ^^ oTinspection or sup- number of authorities, there '^ «°f ""^J^^^^^^o uniformity in their ervision over the separate ms Utu^^s^ ^f ^Jm Ltration. purchase of internal organization, ^''^"i*^^' "'J^Hnancial statements published, it supplies or accountmg. ^rom *he financia .^ ^ ^^^^ appears that in one institution the t°**' «?*"'' *°others. The prices. Sr proportion of the tota^^ ^P^^ *^,;; it'i^ons vary widely, quality and amount of supplies t°^*^ *[" ^ institutions differs to a The per capiu cost of «n»»tf."r^<=^;" ** ^^ sutt hospitals for the large extent; and is ^'^^'^'^.t^X ^tiad^ate and uncompar- insane. The system » »"=f ""|^ '' t^'J^finiteW either the ordinary able; and it is tmpossAlc to "in'^^^^^fS a profit or a loss, expenses or whether the prison mdustnes yieio a pro KEFOET OF THE COMMITTEE. ^ The State Board of Pardons, which also acts as a board of parole for the State penitentaries, is composed of three members, each of whom receives a salary of $3,500 a year. The Board also appoints a clerk and stenographer. It is required to hold meetings once in three months; and in practice monthly meetings are held. Pardon cases appear to take but a small amount of time; and parole cases (amounting to about 1,500 in 1913) are said to take about two weeks of each month. The Board of Managers of the reformatory acts as a board of parole for that institution. Advantages of Central Board. In favor of the single central board system, the following advan- tages may be urged : ( 1 ) It makes possible uniformity in the organization and adminis- tration of the various institutions. The central board should be a clearing house of statistical and other information relating to the sev- eral institutions and their inmates ; and by the standardization of serv- ices, salaries, accounts, methods and reports, it can secure uniformity and equality between the several institutions, and greater economy and efficiency in their management. (2) It promotes economy by the elimination of duplicate officials and employees, by establishing a more vigorous supervision over financial expenditure, and by centralizing the purchase of supplies in large quantities for all the institutions, so that these may be bought at lower rates. An investigation of the State charitable institutions by a Committee of the General Assembly in 1908, showed startling varia- tions in the prices paid for the same supplies in different institutions, as is pointed out in Professor Garner's report. Under the centralized system of management established by the Act of 1909, there has been a marked saving in the cost of maintenance, even in the face of higher prices, as shown in the following summary : Gross cost of maintenance, based on the number of inmates in 1910, at the per capita cost for 1909— 15,705.98@$194.87 per capita. ..$ 3.060,624.32 uross cost of mamtenance, at per capita cost for 1910 --15,705.98@$175^5 per capita $2,754,043.47 Expenditures of Board of Administration for 1910. .. . 58,400.68 Total for 1910 ..^71777717 2,812,444.15 Savmg in 1910 under per capita cost for 1909 $ 248,180.17 ^''''?Oln*'^*o?/ Vi^?*^"^"5S',J'^^^^,°'' ^^« number of inmates for CrJ. : y '* *"^ ^^^' ^* *^« P^*" capita cost for 1909 $12,534,960.07 ioin''1o?i ?J?i?*^''^"^S\i'^'^^ ^'^ t^« '^"'"ber of inmates for 1910 1911, 1912. and 1913, at the per capita cost for each year, plus the expenditures of the Board of Administration, and in- creases m bills for repairs and improvements $12,116,509.74 Net reduction in four years i 41BA50J33 \4m i PI ll.il II Jl I 42 EFFICIENCY AND ECONOMY COMMITTEE. In the penitentiaries and reformatory the conditions -^"^ ^•;^-f^ 1.H in the charitable institutions still continue. The differences prevaded in the chantame institutions make exact compan- " -~-7 ^STt ; cltar tTattere is no uniformity of standards sons difficult. But it is ciear u. striking differences as as to salaries of P*'-**-^^^"^ ^^tfof fooT^^^^ applies, between the amount, quality »"<^ /"'*' „ '^ ^.rf^d in 1912 from ft, diariubl. ii»«ao«». Th. ■»»»'<'«' ™ ^ ,„^ .„ tiom ar. also ™ptoy«d m pnson "^"'"^' "TriSToark.t; «id duties can keep in ciosc wuv. ,...„. -„^ bring jji to a common tions and it can compare these ^^^^itions a«d bmg ^' ° standard. By relievmg ^e -naging J^^^J ^^^J^lir time to business and financial detaUs, they are leit iree to uc the care and welfare of the inmates. '" ?tTefsTlrked tendency in this country towards the abolition of ^ X STfoTstate institutions, and the substitution of cen- New York, in 1877. consolidated ^e manegement oi^J^^^P ^^^ under a single state superintendent of P"^""!" ^^^^^ „, both of gradually centralized the managemen J^^^"- ^^ ^J^*^ ^.tablished these classes of insftutions Ha^^^^of th Jj « j^''- ^.^^^„^^ ,,,,,„ central boards of cont^l ^ or Jt Jeast^^e cU ^.^^ .^^^^^^^ of these have placed both their chantao e a ^^table institu- board. REPOKT OF THE COMMITTEE. 43 In eighteen states the management of state correctional institutions is under the control of a single authority; and in several others there have been established a central supervising agency with substantial powers. These include nearly all of the most important states. In the states where the central board system of managing charit- able and correctional institutions has been established, this plan is re- garded as a great improvement over the former plan of separate boards for each inftitution, and there seems to be no sentiment in favor of returning to the former methods. In 1902, a Committee of the National Prison Association, after an extended investigation, expressed the con- clusion that all penal and correctional institutions should be placed under the control of a single administrative agency. State Boards of Pardons are provided in about two-thirds of the states. In most cases these are composed of ex officio members, usually including some of the elective state officers ; but in Georgia and California the Prison Board acts as a Board of Pardons. In a few states the Boards of Pardon are composed partly of ex officio members and partly of members specially appointed for this purpose; and in seven states the Boards o( Pardons are composed entirely of specially appointed members, as in Illinois. But in most instances members of such State Boards of Pardons receive only a per diem allowance ; and the only states where they receive any considerable salary are Texas ($2,000 a year) and Illinois ($3,500 a year). As a rule State Boards of Pardons act also as boards of parole ; but there are a good many exceptions where the Prison Board or prison officers act as parole officers. No other state finds it necessary to pay any such amount as does Illinois in connection with pardon and parole cases. Board of Prison Administration. From a consideration of the experience in Illinois with the Board of Administration, which is confirmed by the experience of other states, it seems clear that the management of the State penitentiaries and the reformatory can be made more efficient and economical by being placed under the control of a single responsible authority. Two plans for this have been considered by the Committee. Under one plan, these institutions would be placed under the control of the Board of Admin- istration. Under the other plan, which has been approved and is reconmicnded by the Committee, it is proposed to consolidate the sev- eral penitentiary and reformatory boards into a single Board of Prison Administration, to consist of three members, to be appointed by the Governor, with the advice and ccmsent of the Senate, at annual salaries I 44 EFFICIENCY AND ECONOMY COUmTTEE. Of $5,000 each, who are to be required to give full time to the work of Ae Board This Board is to have similar powers over the pen.ten- ^ri!s and rlformatory as the Board of Admimstrat.on has over SariuMe institutions; and is also to have all the powers of he Boa d r;i;s:rsrn^^rorrs?r?=f ^^^^^ will be fisS supervisor, in charge of the fiscal affairs and accounts of *' 'Sl'slilries for the proposed Board of PHson Adm«n.«t^n wj« 1, iJ. il,>n IhoM now P.M to the mtmtet! of th. promt boanli. 1 Be ™?JLTlS o,pSi»tl.„ "■'M tains .boot ~* 5-..^ «^; ^ a more efficient basis, so as to yield larger financial returns and also to secure better results in the trammg of prisoners. Some changes have also been proposed in the law, as }o^^^gt limits for prisoners sentenced to the reformatory and prov.s.on for a psychologist at each of the correctional institutions. No change is proposed by this plan in the orgamzation and func^ tions of the B^oard li Administration o^'" *-anage^^^^^^^^^ the^ta^ charitable institutions. But it is proposed that t'^ V^T^^^^^^ over sion should have the same powers of inspection and *"Pf "T'^ ^" °'^^. rpenitentiaries and reformatory as it now has over the State char. table institutions. EDUCATIONAL AGENCIES. Present Organisation. . Public education is the most important service performed by public authorities in Illinois, as in the United States gene««y, as mea^^^^^^^ either by the number of persons engaged ?V** "^T J thTceneral oended Nearly one-third of the appropriations made by fte Oenerai Assembly in 1913 was for educational purposes; and more than a third of t^S^ amount of property taxes levied by Stat«-d local author. ties in Illinois is for schools. This ^^!;;^XoT^^ ^^"^IX^^^:! State and local institutions under the control of btate ^"^ *° . . ^public elementary and r^^^^^r.^^^^^^ ^^^s a^^fth a local authorities, but under *^ P-^J^^* .^'^^^^^^^ of riuc^i-S^LZr^L^r fSc insatutions for higher Education are mainly under direct State control. KEPORT OF THE COMMITTEE. 45 There are now no less than fifteen separate State boards and officials in Illinois whose functions are primarily educational. Most of these authorities are legally or substantially independent of each other; and there is no official organ for correlating and coordinating the different phases of educational work in the state into a systematic whole ; while even some of the branches of this general field are divided between several distinct agencies. The Superintendent of Public Instruction is provided for by the State Constitution, and is elected by popular vote for a four year term. He has general supervision over the common and public schools, with advisory and quasi- judicial powers over local authorities, and with some administrative and financial powers to examine teachers, to con- trol the distribution of State school funds, and to serve as an ex officio member on various institutional boards. Each of the five State normal schools is under the control of a sepa- rate board of trustees, whose members are appointed by the Governor with the consent of the Senate, with the Superintendent of Public In- struction serving ex officio on each board. Four of these boards con- sist of SIX members ; while the Board for the State Normal University at Normal has fifteen members. The normal schools have not been well articulated with the rest of the state educational system ; and with a separate board for each institution there has been a greater diversity of methods than is necessary or desirable. Under the present arrange- ments there is no central responsibility for adjusting the requests of these institutions for appropriations ; there is no uniformity in the items of appropriations or the accounts for these schools, so as to permit a comparison of their financial statements. Each institution has its own system of fees, and has its own system of educational standards, which causes difficulty when students transfer from one school to another. The University of Illinois is managed by a board of trustees, con- sisting of nme members elected by popular vote, with three ex officio members. While the University has close relations with the general school system, there is no official organization for adjusting, these rela- nons; and the election of trustees, under present conditions, cannot be considered as a popular selection, but is likely to be determined by the trend of party politics rather than by educational interests. ^.nu'^T ^? """"^ ^'"^ ^'^''^"^' maintained by the State in Springfield, ^ch under the control of a separate authority~the State Library, the S!^^?T.l ^'^"^'^' '^' ^^^*" ^^ Library, the State Museum enZ7' J"""^ Extension Commission and the Legislative Refer- annL?«'^"* ^'^"'^ ^^^^ ^ ^""^ '^^ ^^ twenty-nine persons, and an annual appropnation of $70,000. There are other libraries at the State i 46 EmCIEKCV AND ECONOMY COMMITTEE. a thoroughly qualified and trained '■*'^''"^";... by the State, most of A number of scientific bureaus are ""^'"f "'f jj'^^f the State these having some con-f O" 'n 'aw °r m p^^^^^^^^^ ^^^ University. These mclude the ^8"^"""^^' ? j Natural His- Engineering Experiment Stat.on, the SU^ Laborat^r^ ^^ tory, the State Entomologist, the State Water Survey m logi al Survey, and the State Museum of Natural H«to^- ^ these are primarily engaged in -vest.gat.ona, a d educat.ona^ with reference to the natural resources of the S ate ^J'^ bJ^nches the one hand to the University, and at the ^'^-;i'^«'l'l^^ ^^l^ ;„. of State government and to ^^^Zt':o'orlZ^L: Z no stance, however, there .s a different f^^"^ ° ^ ^ ^ese services, definite policy has been establ.shed as t^t^^^^^^^l^"; agencies, and their relations with each other and ^'t^ f j-^J^^^J^, ,,^p,ex; The local administration of schoo aff'^'-^^'^.f ° ""X and more and its efficiency and economy- ^--^^^^^^^^ ^y concentrated organuat.on. The management .^^ ^^ township treasurers costs more than $200,000 a year , a Cook county, these expenses come to more than^ ^enth of t school fund, and about three-fourths of the ^-^^^'^'Jl^^ Z school funds. A large part of th.s expense ^f^J^J^"^" work would be done more efficiently by a county ^^'^- The small school district is also an ^-^^^^jl^ SSon, for the local management of schools. J^e Educahonai in its report to the Forty-Sixth General Assembly repo^^^^^^ township were established as the umt of ^<='^°«'/;^^^**^*^;' ^^e educa- r =^rth:re^"rtrC StS^mty, harmony, ritt" otaSSon. economy, and efficiency, for separation, disunity, confusion, inefficiency and waste. there seems Surveying the whole field o educa uon^ SnSn of authori- clear need for a reorganization and a greater concen ties. Under the present --^S^^!: ^t^^,:;^^^^ education in its various lines. REPORT OF THE COMMITTEE. 4T In Other States and Countries. Each of the important countries of the world has a central depart- ment of education or public instruction, which exercises supervision over all branches of public education, with bureaus dealing with each subdivision of the general field-as elementary, secondary and higher. Many of the American states have in recent years reorganized their educational system, or important parts of it, in the general direction of a more concentrated system. Most of the states have established a state board of education, which has at least some general powers of supervision, and in some states (as in Massachusetts and Connecticut) exercises considerable advisory mfluence. In several states-such as New York and Indiana-the state boards of education have much larger powers over the general school system; and in some states (as m Oklahoma and Idaho) they also are the managing boards for state educational institutions. In most of the larger states where there are several state normal schools the management of these schools is under the supervision or control of a single authority. Thus. Massachusetts. Connecticut. New Jersey, Michigan and Texas place all the state normal schools under the direct control of the state board of education; and Wisconsin and Min- nesota have each placed its normal schools under the control of a single board. Several states have in recent years placed the management of all the st^e educational institutions under the control of a single board - Idaho "***' ^°^^' ^°"* ^^^°^^' ^°"*^"^' Oklahoma, Kansas and Recent reports on these tendencies in educational reorganization in this country, by President Pritchett. of the Carnegie Foundation for the advancement of teaching, by President Van Hise. of the University of Wisconsin, and by the Virginia Education Commission, of 1912 agree in endorsing the consolidation of the management of educational insti- tutions of the same class, and in urging the need for some method for securing more eflfective correlation and cooperation between difTerem 2,1!"^?,!'°"^' '^'""''- '^^^'' '' '^•'^^'•^"'^^ «f 0P'"i°n as to the finn, • Iv •""'■^ comprehensive consolidation of all classes of educa- Uonal institutions under one board. In some of the smaller states with a few institutions this plan seems to have brought about improved Zd !l°"'' ?"* '" 'Z'^"" '*^'^'' ^"'^ especially where salaries have been dffficuu"'"' "' '""'' educational boards, there have been serious M*' 48 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. 49 Recommendations. . Several considerations seem to make it inadvisable to "fg* ^^ ''"^ ,J:ZtZ^ centralization oy^'^-f::^^:^^:;'^'^. The constitutional provision requmng ^^^P^P^'^J^T^^^tis factory Superintendent of Public Instruction stands m the way "^ ^ *^^'^'^' J, S.d for selecting the -cutive head f or s. a„ orgam.at.on J^^^^ . tical experience also md.cates «^=*'J°T^"" ; „f y boards; and ,sMiM . Sut. Bo=,r.l of M«a..«.., » cons.. «i J' ^O jf P«™ of Public ln.in,.tioo, »nd .Ijht unp.. supervision of the Board of Live Stock Commissioners. aBTORT OF THE COMlf ITTEE. $5 Aboard (of five members) of Registration of Stallions for Public Hire has recently been established, whose members receive a per diem aflowance and it maintains a staff of employees, for which an appro- pnation of $22,460 has been made. The duties of this board are mainly clerical; and could be performed by a single officer with such clerical assistance as may be necessary. By an Act of 1877 provision is made for the appointment of four officers to enforce the law for the prevention of cruelty to animals. ihese officers, known as humane agents, are located at the stock yards L nJT^"""^' ^"'^.^'* ^'- ^"'^ • '^^ ^'^ '^'^^^ an annual sal- aiy of $1,200 a year, with no appropriation for expenses; and they are subject to no supervision by any other authority. An Inspector of Apiaries has charge of the official inspection of bee hives; while the inspection of nurseries, trees and shrubs is in charge of the State Entomologist, whose primary function of scientific investigation IS to some extent hampered by his police functions. The inspection of nurseries and apiaries might well be consolidated under one official. . Sf^f.'^H T'u'°"? T ^'^^ ^^ ^^^ ^""'■^' Assembly to the Illinois IlHnL rr"S"'t ^T"^'. '^' ^"'""'^ Dainrmen's Association, the Khnois State Pouho' Association and the State Beekeepers' Assi^ia- faon. These are substantially voluntary organizations, and they are not under the supervision of any State official, firni^^*" «_P^«gate appropriations in 1913 for the foregoing agricul- the expenditure from other. State Fair revenues, the total payments for ft^e agencies is about $950,000 for the two y4r period T^olvSs of this amount is expended by the State Board of AgricuW whS •s^lai-gely selected not by the State but by voluntary SlTr^a^S ^» Other States and Countries. cuItute'TJ;r'''f ;^ *' '*"''' ^""^^ ""-g^^^^d departments of agri- th sHJes ' "^i'f,* '^r^' «^ related services; and in most^f ThLi!^ V ''^^^ent 's under the direction of a single official ■n olnlTrtSt i^ '?r' '" """^^ °^ ''' -thernttS amnl«L ... ^'' ^"^ ^'"' *est; ''"t the most important ex- a"1n Ne^ YoTr 'T""^"* "J ^^""'"^^ '" '^^ uSLZ statesth.!! ' Pennsylvania and Ohio. In each of these three ' enfo,^^e;t „, fit ?' """'^ °^ ^'^ '"^P^^^'""' ^"^ « Ohio the depSS^S are o "'•T"' T" "^^ "^'^ ^''^'^ -<^ Pennsylvania P rnnents are organized under a single official, with a series of II i Ijl 5( EFFICIBHCY AND ECONOMY COMMITTEE. bureaus each dealing with some division of the work In OWo |here is an agricultural commission of four salaried members (estabhshed , I lSl5f which has power to establish bureaus and to conduct mve^.- cations and hearings. , t^ • • t In the United States National Government, in the Domm.on of Canada and its provinces, in the Commonwealth o A"^«f ^ ^"^ */ several states, and regularly in the governments of Europe there are consoUdated departments of agriculture, each under the direction of a single official, with subordinate bureaus and divisions. Proposed Organisation. The Efficiency and Economy Committee recommends that : m The various State boards and offices discussed in this section of the report be consolidated into a Department of Agriculture, under Ae general direction of a Secretary of Agriculture to be appointed by the Governor with the advice and consent of the Senate , . (2) This' department should be organized with a number of bureaus, each in charge of a single executive officer, as follows : A Superintendent of the State Fair, to have general managemen of the State Fair, assisted by a State Fair Commission (to consist of the SecrS y of Agriculture, the Superintendent of the State Fair and hree other members) in awarding building contracts and in adopting fules aild regulations relating to premiums and the grant of space con- cessions ; , . A Director of Farmers' Institutes, to have charge of arrangements for tt St'te and local farmers' institutes and the publication of pro- ^erngs. to be assisted by an advisory committee of five members ; A Live Stock Commissioner, to have charge of the enforcement o laws for the suppression of contagious diseases among animals-hs aXs In establishing quarantine and rules -'atingjo the trans^^^^^ fion of live stock, and the condemnation of animals or mfected property Jo be subjecMo'the approval of the Secretary of Agriculture or the ^"^TTTe' State Veterinarian and his assistants, the State Biological Labo^to^and the Board of Veterinary Examiners should be under ^e suoer^sion of the Live Stock Commissioner; as should be also the hunine ag^m^ and a registrar of pedigrees, who should take the place of the Stallion Registration Board ; . . ^ t An Inspector of Apiaries and Nurseries should have charge of enfofcL tKws relating to the inspection of bee hives, trees, planU and hrifb. combining the functions of the Inspector of Apiaries with *c inspection and police duties of the State Entomologist ; aSKKt OP THE COMMITTEE. 57 (3) Private associations dealing with agricultural interests which receive State aid should be required to report to the Secretary of Agri- t^his^officer"** *^^''" ''*'^"*'*' ^°' appropriations should come through fr,f^ J""^" in Professor Gamer's report on Agricultural Adminis- tration, the organization above outlined will require an outlay of $29.- 800 a year for official salaries and per diem, as compared with $40,800 a year under the present arrangement, or a saving of $11,000 a year But this reorgamzation should also lead to a larger reduction of salaries and expenses for subordinate positions; and to a further saving by die more efficient management of the services. It will also bring under State control the State Fair and Farmers' Institute, which are larsely supported by State appropriations. PUBLIC HEALTH ADMINISTRATION. Present Authorities. As in other branches of public administration. State control of public health in Illinois is exercised by a number of separate authori- rZ '^^Tl \ "l T^ "'*''"'■• '^^^ P""<='P^' State agencies are : Rn J /l"^'"'^ °^ "^''^' *" S'»*^ ^""-l Commissioner, the State Board of Pharmacy, the State Board of Dental Examiners, the Bar- bers Examming Board, and State Board of Nurse Examiners. bv fZr u °J "^'* '°"'''*' °^ ^^^«« members, appointed $10 mT"""/'*^*' ^*^^'" ^"*^ <=°"^^"t °f *he Senate, who receive iZ'^f^-.^ .'''^" '""^^^^ °" *^ *'°^^d. The Secretary of the board IS Its executive officer; and the board also has an attorney a t^l'n^'": ° •'J^^"^ '^°"'^^' " '^^'^ «^"'t^'7 inspector and ofher ZkaTs "^./ - ..^' '"^^^ ''""^^ examinations and licenses . physicians, midwives, "other practioners" and embalmers It has durtT- '"Pf."''^''" °r' *^ "-egistration of births and deaths. It con- tions in SrT, T 'If'* ^°"''*'°"^= ^"P^"^'^^^ ^"^^^ eondi- tr;onti.f '/ '^ M "'^^"S ^'""^^^ '" Chicago; and takes measures for the control of epidemics when the local authorities fail to act properly The board ,s dq>e„dent to a large extent on local authorities to eSe * ive Ev"e„ tr ' 'T^'^l *^* ^"^ '°^^' °«"^»« -*^ "^^en " Th. r. s^tistics of deaths are very inadequately reported. of lawsrZf^- *^u *^~''.'°"'' '' ^^"^^ ^''^ *« enforcement* o foL ^ ^ ^ '}t P™*'"'=''°". n-anufacture and sale and labelling ^ l^J)' Food Standard Commission adopts standards of quaS al rf JT 'T" ?''**'T- '^' ''^P^^^"* ^t«ff •"'='"d«« 'state «» Of pr«n«e8 where foods are manufactured or sold, the »an^. i ^1 I tt ( 1 * 1 ^ M i H BFFICIEHCT AMD ECONOMY COMMITTEE. tion and analysis of samples, for adulteration and '"Jbranding the prosecution of violations of the food and drugs law. and the license of dealers in commercial food stuffs. The State Board of Pharmacy consists of five members appomted by the Governor, with the advice and consent of the Senate, who r^eive 3» 00 oer day for their services. The Secretary is the executive officer , fnfth^reta small staff of other employees. The board holds «-; inations and issues licenses to pharmacists, and is charged with the enforcement of laws regulating the sale of drugs and chemicals. The State Board of Dental Examiners consists of five members, appointed by the Governor for five year terms. One member is chosen af President and another as Secretary. The SecreU^ryjeceives a salary of $1,200. and the other members receive $10.00 per day tor Aeir services. The board holds examinations and issues licenses to dentists, and may revoke licenses. The State Board of Barbers' Examiners, established in 1909, con- sists of three members, appointed by the Governor for jwo-y^F ter^s. Each member receives a salary of $1,200 a year. The board holds «- SiSations and issues certificates to licensed barbers and may revo^ such certificates for certain causes; and is also a"*or'z^.\J»/i'^P» saniury rules for barber shops, subject to the approval of the State Board of Health, and to inspect such shops. The State Board of Nurse Examiners consists of five registered nurses appointed by the Governor, with the advice and cons«it of the Sc^Te fo? th«e-yL terms. One member is chosen as P->dent and one as secretary-treasurer. The secretary-treasurer receives a salary of $1,400 a year ; and the other members receive travehng expenses and • So ob per day for their services. The board holds examinations and fssues certificates of registration to licensed nurses, and may rev.^ such certificates for certain causes; and is authorized to adopt rules and to outline a course of training for accredited schools for nurses and to inspect such schools. , . \. • Other State agencies exercising some authority m relation to sani- tation and public health include the Rivers and Lak^ ^'""'^r' (o^er streaSi pollution), the State Water Survey (''h.'^h ^^T^ oublic water supplies), the State Factory Inspector and the Live Stock SmSiils'on. Much of the work of public health administration ,s in the hands of local authorities. _ ^ . These separate and independent authorities m th« field have to some extent overlapping and conflicting powers ; while Aere^ is iio means provided for effective coordination and supervision. The State S Kerith seems in the past to have given more attention to the KEPOST OF THE COMMITTEE. 59 In Other States. lished^Xfthlw'* ^' "''''■ '^^* ^^^""'^ •>-« ^- -tab- i«nea in all of the states. In most states there is the same lack of well orraniz^H h.,uuT' *"** Pennsylvania have each a sTnl hSw •'^ ^.^^P^^^nt. «rfder the executive direction of a Sed SI '""''Tk'"' ^'* '" ^^'''"^y ^^^^'A -°""«1. and sub- divided into a series of bureaus or divisions for various branches of Sd*:ticf uTdtr ' "'^•^'^"'^ ^"'^ ""'^^ '^^ also a wdl dl . oped service, under their respective state boards of health. New W ^SlT"! "' ^--^•'"-"^ have been divided into a nu" apL^LTSid \'" "* "' "■^'^'^ ^ *^*"<^ health officer is l'^rt^^:rTorc:r^:^'^'' 1 ''T *^ ^***^ ''*"^* -*-«- have Tn r '*^' health authorities than in Illinois. ment is usuInvT"''' '^' P""''= ''^^'* service of the central govem- BoardHf Fialce i ;?? ^**- • " ' ^T*^'' °* *' ^-' Government and PuMfc H^ia "" '" ** '^'^'^^'^ °^ E^"<=ation ^^commendations, the seU'ra'rZTh atn "'^ *.' '^'"'""^^ *"*• ^°"*""y Committee that Health SpaS^enrTh-' ^ '■"'■^"'"' ^"'^ ^""''"^'^ »»° * State direction oTat^^ar ed Sealth r""-" • ''""" '^ ""'"^^ *e general tive officer- with ,n .? -f c ^"'"'"'^^'"ner. as the responsible execu- be app<^S;d"'g the"Sr' f w^rthfa??'* ^^^^^ '"^''^-' *° Senate, this board to =,^.1 7- ^"'^ ^""^ «'"«^"t ^^ the rules and reSons aid ?7 r*^ '^'' ^'^ ^^^^^ *° ^PP'«^« bureau offidrSs^fj"*^'^:;'*^ "PP""'" '" ^P«='««'' ^^ases from department should be organized with a number of divisions M b «-/^'=\P^°i"^^'°"; *° ^^lo far examinations and to issue «cens-nd ^^^^^^^^^^ the- or - ;.^SoJ^^ as practicable, the clerical and administrative *<>« • such examinations should be handled trough one office and the a^on of the examining boards in revoking licenses should be subject to review bv the State Board of Health. The Board of Barbers' Examiners and the Board of Nurse Ex«n- iners should be abolished; but the Health Department should exercise T^nwprs of sanitary control over barbers. te in n«d ot taportant am»<"!"«>"■ ^'""'",r. Ley to .hoald b. ,cvi«d : *= "^^'Sd J^»S^ B"'^ ::.-r^td ^v^zrs r^*^:. - - - General Assembly as soon as possible. PUBLIC WORKS, PARKS AND BUILDINGS. Under this heading have been grouped the State a«*orities d^ * ing wrhighways, watl --s f^;jf ^TirS'i^e buildings and monuments and StaU Parks^ ^ ^anal Commissioners, Highway Commission, the Illinois ''"^ ^Kh^n Ca ^^^^.^^ ..e Rivers -l^^^Z^Zt.^^-^tL^^'-'^cS.^Z' f„3rorruiS^;sT« Park -— -;;u.Tr. of minor commissions in charge of public ^°— ^^^^^^^ the These authorities are less actively related to each J^^er t authorities in the other groups of State agencies- But the^ toc^ all relate to the construction of pubHc works, and the conservation BEPORT OF THE COMMITTEE. gl ustlt'rSTndr"""'' *"' -terrelations are closer than is usually realized, and this grouping seemed more satisfactory than anv other to carry out the general plans of the Committee. Public Works and Parks. The State Highway Commission, established in 1913. consists of three members appointed by the Governor and Senate. It is the cent.^ organ of highway administration in the State. Formerly road adS ration was thoroughly decentralized, at first in county authoritie™ later in township and road district commissioners. AfterlSoS ihere was an advisory State board. The new commission is on a sala^ basT L l^r !T"'"' P"^'*"^ *° '"^^^''g^t« ""^thods of road const^cdon officers and to prescribe a system of accounts for such offices and to ETf strT^ *!;' 'ir"^' ^°"^*™"=''- -^ maintenance oV system of State aid roads. The commission works very largely through LXheTf '"^'r'" *^ ^""'^ "'^'^-^y En^nee' ; and a"so IS for the S^ y T'"''^^^^^ °' •''^''-^y^' -h« -' -^ 'ocal agents for the State officials, as administrators of county roads and brides and as general advisors for local highway comm£ion"rs. Sute ^per^XioToVrr''^' I" '"P*"*^"* ^*^P '" *e direction of even irSSaZ if "T' '^T^ '' "^^ ^ 1"-«oned whether improved 1^17 ? '"^ '■°"**' ""*^ ^'"«^'"? on the roads to be S amtrit es Tb'/f T'' ''rl "^ ""^^ '" *« hands of the mos nar^T . ""'*"'"' °^ ** ^tate authorities are for the woJk whlhf f;,^"^<^"t'^*> administration or technical engine^ „' TaiiVa b^r thrrmeSr ^ ''--''' '^ ' ^^"^'^ --^'-^-' Lakefcill!!"'' '"l^''*"'^" ^'"^' Commissioners and the Rivers and Michigan dLf I ^.'"'"•"'oners have charge of the Illinois and tainTnfwWkl; T""' °^ ""'" '"'P°'^^"'^« ^"^ is not self sus- sion. estabfohed n lOlff ^^'^^^^^ The Rivers and Lakes Commis- all the rTve^an j^^^^^^^ ^T,v ^""'' '^''"'''''''''' ^"^ ^"P^^^'^'on over exceptionrLd whh ! ',7"' '"''^"'' ''°"^"^'' *° ^*"»« ^Portant and pubKsh iJfo!!*- ""f '^^"^"^°"^ "^^ of specific powers, to collect mation p Sect Torr; T f T " *° '°^^' '''^'"^^^ ^"^ recla- and thi^rsho 1 tn " u''" *'" improvement of public water. encroachmenron LuW . ''' ''°""*"" °' ^*^^'"^' *o prevent •evees. and with auSrhS"' ? ""*"*=' '°°^ P™»-'- HI autnority to hold investigations and hearings and to I ! ¥ ;* A Ml !i i i'. tt EFFICIENCY AND ECONOMY COMMITTEE. issue orders. The powers of this commission are too vague, and should be more clearly defined. In practice, most of the work of original investigation has been performed by the State Water Survey ; while die most important work done by the Rivers and Lakes Commission has been in the exercise of police control to prevent encroachments and pollution of public waters, and in the construction of levees. Jurisdiction over water resources is also exercised by the State Water Survey, and the Fish and Game Conservation a)mmiss.on, and ula smaner extent by the State Board of Health the State GeologK J Survey, the State Laboratory of Natural History and the Public Utilities Commission. More efficient administration can be secured by consolidating the Illinois and Michigan Canal Commissioners and the Rivers and Lakes Commission into one authority with general jurisdiction over water- ways; and by placing the executive administration m charge of a single salaried commissioner. ^,. . j ■ 1011 The Game and Fish Conservation Commission, established in IVU, is a consolidation of the former Fish Commission and Game O)™- sioner ; and, as already noted, the appropriations for *e~mb.ned com- mission were notably less than those made two years before for the two TuZriti^s. The new Commission consists of three -f "-PP^^^^J bv the Governor and Senate. Its principal functions have to do with ?he enfor° ement of the fish and game laws and measures to conserve fish and game. There are sixty deputy wardens appointed, and also tlX^ deputy wardens, with police powers to investigate complaint a^TaTrest violators of the law. A fish hatchery is maintained at Havlna, and fish preserves have been located ^ -^ *« P"-^^^„^* streams; and a State game farm has been established at Auburn near sSeld The nature of these functions does not require a board of fhr™ members; and more efficient administration -uld ).« o^-" placing this service under the control of a smgle executive officer. The Illinois State Park Commission is an unpaid bvard of three members appointed by the Governor, with jurisdiction over Starved SS SkXrt Chartres Park and Shabonna Park. Fort Mas- Park is under the control of a board of trustees, consisting of three State iffi'rs ex officio and representatives of the Daughters o^^^^^^ Revolution. The Rivers and Lakes Commission has also authority to p "ise plans for making reservations for park purposes along the public waters of the State. As yet these provisions for State parks are not of large importance, but more effective results will be secured under the management of a REPORT OF THE COMMITTEE. ^ single paid superintendent, who should have charge of th. ^.' . of existing State parks, and the duty orprSne L^^^^^^ comprehensive system. Prepanng plans for a more Public Buildings and Monuments of such special commissions havTbSncrfatedW 7^ ' ^"'^^ """"^^ monuments. The State Architect, an oreSel^t S™*^'"" **' ^^:t^^1^JZ ~^ ^^ ^d He receives a sala J ofls oS «^v *° f"P^"^«« their construction, of the cost of the wlk f!r Censr' "' "' '' "^*^"*^ '^^ ^ '^' co„st™^^tiont1i';^::C^^^ over building a separate board. But the^ra^.ln it L^ roT^or'" ilnnois have not been ^laticfo^*^ xt • / ^""cuons ot the office m his staff have beLpe^tlZ ^^T'' *^^ ^'''' '''''^''^ ««>r ing preliminary plans aTXi'st '*""'' P''*'^'^'°" ^"^ P^^^r- no inspection of construction ' ^"^ ^^ "^^ "''"« or the chfrl^tlbtSuL: h^^^^^^^ °' Administration the control of the consolidation of ZatLh' '^"""^^"t'^ted under one body. With trol of each class o i^thu'^Toi f/^^?'*^ '" *'^ ^^P^^. the con- which should havf crtrni ° !u ' '" '^^^^ °^ * ^«S'e authority, for the instituti under its r '''""' "^"^ °' '^""'""^^ "^<»S way of new builZgTseems HkelT r"'' /°'"P»'^t-ely little in the these conditions. SofficroS. A .T^'*? '°' ^""^ y'^^"" Under The State Art r • • • Architect is unnecessary. appointed b7LSov~rd"s" T ""^'^ '°^^*^ °' '^ "-"-^^ on plans for publirbulSws and .'' V " "" "*^"'^*"y <=*P»«ty it. Before 1913 Me nr i ul^ °^ "'^ ^'''^ are submitted to has recently been ath. ?'"^ ^^'^ ^'^ ''^'"^'^ *« this body, t Douglas Sutue It str'hi *° ^7^^ ^'^"^ ^^'^ ^ ^in^l- and a art^ected by fte St^te '""'"""'^ °" "" ''"«*"S^ and works of tablishrfrS tti'rZun^r T" ""' •=**»"'"^- •'-« ^ es- other memorialsTd ffeS Zi^niT'""^'^ °^ monuments and sponsible for the ca'«SrSil;?:^^^2r ""^ """"r" "^ dk ^~-UAS4m 1- 11 64 EFFiaENCY AND ECONOMY COMMITTEE. Control over the care of the public buildings of the State is vested in various authorities. The Secretary of State has general authority over buildings not otherwise provided for by law, and appoints a Super- intendent of Buildings and Grounds for the State Capitol, who has charge of a force of janitors, policemen and mechanics. But the State Treasurer also appoints a force of watchmen ; and each office in the State Capitol has its own janitor service, and makes arrangements for its own telephone service. Other state buildings in Springfield are each under the jurisdiction of a separate official— the Governor has control over the executive mansion, the Supreme Court of the supreme court building, and the Adjutant General of the arsenal. For the care and maintenance of public buildings in Springfield, appropriations were made in 1913 amounting to $259,400 for the biennial period. Thirty State offices in Chicago are under even more decen- tralized control. Each officer or board arranges for his own quarters on short leases (for not more than two years) in widely scattered local- ities, at an aggregate expense of $72,000 a year. Efficiency and economy would be subserved by placing the care of all the public buildings in Springfield under the control of a single offi- cial, appointed by the Governor, who should also have power to arrange for a branch telephone system covering at least all of the offices in the State Capitol. There will be a similar advantage in assembhng in a centrally located, modern, fire proof building in Chicago such of- fices as the convenience of the State may require to be mamtamed m that city, such offices to be under the supervision of the Supenn- tendent of Buildings. The committee does not recommend the con- struction of a building in Chicago by the State. Recommendations. In discussing the various authorities in this group, suggestions have been made for substituting single officials in place of some of the numerous boards and commissions, and for consolidating certam authorities, such as the Canal Commissioners and Rivers and Lakes Commission, and the control over the care of public buildings. Atten- tion may also be called to the interrelations of these several authorities, and the advantages of uniting them in some general organization. Several of these authorities are primarily engaged m engineering works of a related character ; and there will be some advantage m plac- ing these engineering services in one department, where active coopera- tion can be more readily secured, and large problems of policy con- sidered in common. In European countries the important engineering works of the government are thus usually brought together m one department, as in France and Prussia. In several instances the authon- REPORT OF THE COMMITTEE. 65 les included in this group now have legal powers or in fact exercise functions which bring them in close contact with each other. Thus the Rivers and Lakes Commission and the Game and Fish Conservation Commission are both concerned with the question of stream pollution: and the Rivers and Lakes Commission also has power to propose plans for park reservations, which relates to the work of the State Park Commission. As already pointed out, for the different fields of service included in this section of the report, the executive administration can be more efficiently carried on under the control of a single official. There are however, some functions where it will be advisable to have a small board-as m proposing or adopting general plans (for waterway unprovement, State roads or State parks), in approving rules and regu- lations, and m conducting hearings or deciding appeals. These matters can. however be better looked after by one board than by a separate board for each particular service. separate The Committee, therefore, recommends that the existing State authorities having jurisdiction over highways, public waters, fish and game conservation. State parks, and building construction and main- tenance be combined into a single executive department of Public Works. Parks and Buildings. It is proposed that this department be placed upder the general supervision of a salaried commission of three members to be appointed by the Governor, with the consent of the Sen- at^this commission to have power to recommend or approve larger aontr' ^^"'.' *° "f P' ^^"^■■"' ™'^^ ^"-l regulations, to hfar appeals m specified cases from the bureau officials, and to arrange for cooperative action between the several bureaus. Wori! r ^"'*?''' ^'T'^^ *^* °"" °^ *^^ ™^'"l'«'-s °f the Public be Com^°'"-'"""°'? w'" "' ^'"'^ ^'^^^^y Commissioner, one shaU misSorri' ° Y^*'T^'' ^""^ °"^ ^''^" ^ F'^h and Game Com- Sns „f .'. ;^ ''''' ''^'" "^ •" ""'''' <^^^^^^ °f °- -' the main bWn. th. / t- '^^Pf "•^"'-the Commissioner of Waterways com- office?s*the''r'"' !"^/^'^''=^« ^h°"W te in charge of the following Art Com^ Supenntendent of State Parks and Monuments, the Staff X^T^Tl' l""^ '^^ Superintendent of Public Buildings. The mfssL" sho?M J *''* ''""'^ '" "'°"^'^^<1 ^''d *e State Art Com! S tL c •'"^r^-f ^'^'°" °-- temporary monument commis- of the maintenT™ '",fc ' °^ ^"''"'^ ^""^'"^^ ^^ould have charge have cZS T".K ^^f *^»'"''d-gs in Springfield, and should alfo control over the rental of State offices in the city of Chicago 66 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. 67 !t \V' STATE SUPERVISION OF CORPORATIONS. Present Conditions. In Illinois there are four State officials who have jurisdiction over different classes of business corporations and over businesses which arc often conducted by corporations. These are the Secretary of State, the Auditor of Public Accounts, the Insurance Superintendent, and the State Public Utilities Commission. The Secretary of State issues charters of incorporation to most classes of corporations ; and exercises some supervision over the great number of ordinary business corporations. The Auditor of Public Accounts issues charters to State banks; and has supervision over State banks and banking institutions, trust companies, title guarantee companies and building and loan associa- tions ; and receives reports from pawner's societies. The Insurance Superintendent charters all insurance companies, except title guarantee companies and assessment life and accident com- panies ; and has control over the organization of the latter class of com- panies. All insurance companies except title guarantee companies are under his supervision. The State Fire Marshal reports to the Insur- ance Superintendent. The State Public Utilities Commission has large powers of super- vision over all public utilities — including the approval of stgck and bond issues, and control over accounts and reports, rates and services. The grain inspection service is supervised by the Public Utilities Commission. Under the present arrangements some classes of corporations are under the supervision of more than one State authority. Public utility corporations, trust companies, title guarantee companies, and assess- ment life and accident insurance companies are all chartered by the Secretary of State ; but are under the supervision of the Public Utilities Commission, the Auditor of Public Accounts or the Insurance Super- intendent. Efficiency and economy would be promoted by having all the control exercised over each class of corporations in the hands of the same authority. In the main the supervision over each main class of companies is under the same authority. But title guarantee companies are out of place under the Auditor of Public Accounts, and should be classed with insurance companies. The incorporation and supervision over all classes of business cor- porations and companies should be conducted to some extent on the same general lines; but with the present series of distinct and inde- pendent offices there is no provision for uniformity of methods or cooperation in performing similar functions. Supervision over impor- tant classes of business corporations has been vested in some of the elec- tive State officers, whose primary functions have no close relation to this work, and the enforcement of these laws is thus distinctly removed from the control of the Governor. Illinois has the foundation for a most efficient system of corporate supervision. The method of granting charters provided by law is unique; it is founded on correct principles ; and in the main is uniform for all kmds of corporations. In the case of State banks, building and loan associations and insurance companies, the system of supervision IS fairly efficient, due in part to the fact that these classes of companies are chartered and supervised by the same authority, and in part to the provision of a force of special examiners. But the control over the incorporation and supervision of general business corporations has not been effectively exercised, primarily because the staff of the Secretary of State has not been adequate for this purpose, but this in turn has been the result of the absence of definite efforts to secure the means to carry out the provisions of the present laws. With more efficient administration, the existing laws for the organization and supervision of business corporations would protect legitimate investors and foster honest projects, and would render unnecessary any so-called "blue skv" legislation. ^ The expense of the examination of banks and building and loan associations is more than the fees collected. The scale of fees should be readjusted so as to cover the cost of inspection. Most of the statutes relating to the organization of corporations are based on acts passed from twenty to forty years ago, with many amend- ments and additions. The result is that in many branches the present law IS confused, uncertain and inconsistent. A consolidation and revi- sion of the statutes relating to the formation of corporations would make the law simpler and more easily understood, and would allow mconsistent and conflicting provisions to be harmonized. In Other States and Countries. In most of the other states in this country, the supervision over business corporations is distributed between a number of separate state officials without definite correlation or organization. In some states. XT '^1°"^'" ''*"''' ^""^ insurance companies is vested in the same omcial. ihere has also been a recent tendency to consolidate the pub- >c regulation of all public utilities under one authority, as has been done n Illinois. In Virginia and North Carolina the public control of cor- porations of all kinds has been more thoroughly concentrated in the •mas ot a single corporation commission in each of these states 68 EFFICIENCY AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. 69 ' «:■' Ml' ' 'IP: I ,1 1.- The British Government has vested the control over nearly all .classes of business corporations and companies under a single depart- ment — the Board of Trade. Proposed Organisation. The Committee recommends that the State supervision over all classes of business corporations and similar businesses be combined and organized into a single department to be known as the Department of Trade and Commerce. This Department should include divisions or bureaus, dealing with general corporations, banks and building and loan associations, insurance, and public utilities. The head of the Department should be the Chairman of the State Public Utilities Com- mission, who should be given specified powers of supervision over the superintendents or commissioners at the head of the several bureaus of general corporations, banks and insurance, so as to secure coopera- tion and such uniformity of methods as may be desirable. Under this plan, the Public Utilities Commission will remain sub- stantially with its present organization and powers; and the grain inspection service will continue in its present relations to this Commis- sion. The Insurance Superintendent and the State Fire Marshal will also remain in the main with their present powers and duties. If, how- ever, the State building law proposed in the 48th General Assembly is passed, the office of State Building Commissioner should be consoli- dated with that of the State Fire Marshal. The bureaus of general corporations and of banks and building and loan associations will be transferred from the Secretary of State and the Auditor of Public Accounts, and each placed under a commis- sioner or superintendent, to be appointed by the Governor, with the advice and consent of the Senate. Each bureau or division should have charge of the incorporation of all corporations subject to its supervision. Thus public utility com- panies should be incorporated by the Public Utilities Commission ; and assessment life and accident insurance companies by the Insurance Superintendent. Provision should also be made for exercising more effectively the supervision now authorized by law in regard to general corporations, as to their incorporation, the issue of capital stock and the filing of annual reports. Along with the administrative reorganization, there- should also be a consolidation and codification of the present laws relating to the incorporation and management of corporations, with such amendment and revision as is needed to harmonize conflicting provisions and to sim- plify and make more intelligible the law as a whole. Most of this can be done by a smgle act. But the provisions relating to banks must be passed as a separate law, and submitted to a referendum vote, to meet the requirements of the State Constitution. The departmental organization here proposed is not highly cen- tralized; but leaves the separate bureaus with a large measure of autonomy and mdependent power. Nor does this organization offer any large reduction in the number of offices and salaries. It does however, provide an official organization for securing active coopera- tion and harmony of methods in dealing with different phases of one general problem. This should lead to greater efficiency and greater economy of administration, and also to greater uniformity in the gen- eral prmciples of legislation on these related business interests. LAW OFFICERS. The Attorney General is ordinarily considered the chief law offi- cer of the State. In fact, the legal services of the State are performed in considerable part by attorneys not connected with the Attorney General's department. The Auditor of Public Accounts has power no longer used, to bring suits in the name of the State, in cases not other- wise provided for. The Insurance Department and the Public Utilities Commission have their own attorneys and counsel, authorized by statute^ The Stat^ Board of Health, the State Food Commissioner, the Chief Factory Inspector, and the Rivers and Lakes Commission have appropriations for attorneys. In other cases attorneys are employed, and paid out of general appropriations. As a result of this situation, there is no central responsibility for he legal services and advice given to all State officials, and the way is eft open for conflicting opinions to different State offices which may lead to unnecessary litigation and expense. Formerly the practice of employing special attorneys by particular State offices and boards was iTn andTr." '.. ^l^^V^^^^^ ^^ opinions by Attorneys General Ham- lin and Stead there has been some decrease in this tendency In the opinion of these former Attorneys General, which is also held'by Attor- SSStTtt V^ r' ^^"^^^ -tt^-eys and counsel, are'in con- General ^^'^^^^^^^^^'^^l provisions relating to the office of Attorney staf/n '"^r"^ ""^ '"'^ 'P''^^^ attorneys, it may be said that some ^^T ItZ Tl '""'T' ^''^ '^'''^^ ^no^ledge of their prob- rAttornTv r i' T'^ '''' ^''^ '^' P^^^^^t 'y^'^-^ of electing questions ^ ,^'T uTu^'^''''"""'^ ^'^^^^ ^'^'^ ^^Po^-t legal ^ stions, If he controlled the legal advice given to the department V 70 EFFICIENCy AND ECONOMY COMMITTEE. REPORT OF THE COMMITTEE. n it \ ii- Further it is urged that in conducting prosecutions, the State depart- ments find it difficult to secure the active assistance of the State's attorneys, and as the Attorney General has no effective control over these officers, a special attorney for the department is said to be needed to secure the efficient enforcement of certain laws. The Committee believes that it is important that there should be uniformity and harmony in the legal services performed for the State; and that this work naturally comes under the supervision of the Attor- ney General. At the same time, there seems to be need for assigning particular attorneys to certain departments ; and there is no adequate control over the State's attorneys. It therefore recommends that all attorneys for particular departments or officers should be appointed by the Attorney General, with the approval of the Governor, and be sub- ject to the supervision of the Attorney General; that the Attorney General be given larger powers of supervision over the State's attorneys in the several counties; that State's attorneys be subject to removal for cause by the Attorney General, with the approval of the Governor ; and that the Attorney General be made removable by the Governor for specified causes. MILITARY ADMINISTRATION. The laws relating to the State Militia and the system of militia organization have been largely modeled upon the United States Militia Laws ; though in a few points there is not entire agreement. The Gov- ernor is Commander-in-Chief of the State Militia. The Adjutant Gen- eral is the active head of the organization, and acts ex officio as chief of staff, inspector general, quartermaster general, commissary general, paymaster general and chief of ordnance. From the reports of the United States inspectors, it appears that this organization is in the main satisfactory, though there is room for improvement in discipline and military knowledge. The strength of the Illinois National Guard has been declining in recent years ; and in pro- portion to population is lower than in most of the other important states. The artillery corps and naval reserve are not necessary for the local uses of the State Militia ; but are maintained as part of the policy of the United States Government to develop the State Militia as a reserve military force for national purposes. The United States Gov- ernment furnishes the special equipment for these branches of the serv- ices ; and under recent arrangements supplies these branches with equip- ment which makes them available for State purposes to the same extent as infantry. ^ No changes are proposed in the organization of the State Militia. ELECTIONS. Under the election and primary election laws, provision is made for several State boards of different membership. There is a board of appeals to decide questions relating to candidates for nomination at primary elections, a board of canvassers for primary elections, and a board of State canvassers for the general elections. These are all ex officio boards, but the officers on each board are not identical There is also provision for the appointment of voting machine commissioners to pass on the suitability of voting machines. These several State election authorities introduce confusion and uncertainty in the working of elections; and the administration would be simplified and would work more smoothly if these several bodies were consolidated. The Committee, therefore, recommends that there be established a State Board of Elections, to consist of the Governor Secretary of State and Attorney General, to exercise the functions of the several election and canvassing boards. The voting machine com- missioners should be abolished. If the recommendations of the Committee are adopted, the elec- tion of members of the State Board of Equalization and Trustees of the University of Illinois will be discontinued; and the ballot shortened to this extent. The clerks of the appellate courts should also be taken from the elective list and be appointed by the judges; and they should receive fixed salaries in place of fees. The number of elections now required causes a wasteful expen- diture from the treasuries of the local communities, and in the time of the voters. Including the primary elections, there are from six to eight separate elections for State and local officials within a year The expense for these elections in Cook County is more than a million dol- ' ars a year; and for the entire state is probably not less than two mil- lion dollars a year. A large amount of this could be saved by holding the various local elections on the same day, which should also be the primary election for nominating candidates for the judicial elections m June. This arrangement would also secure a more general interest and a larger vote at such elections. CIVIL SERVICE LAWS. tern Jnr^u""'^ K^''" ^^"^^ ^^^' ^^^^ '^^ foundations of the merit sys- tem Sn u' r "^"^''^ ^" '^' ^*^'"' ^"^ '^^ P™^ipl^s of this sys- loTalanT?. 5^^""'^""^.^ ^^^ strengthened. A study of the several however .U ^^ZV^''^ ^'^' ^''" '"^^*^^ ^' ^iff^^^^t ^^^'^ shows, mo^or T'^i''' '^^^^ ""^^^^^^ ^° ^^ t^ ^^tablish a more har- mZo w 1 '''^ '^'''"- ^"^ '""''^ ''^' '"^^ ^^^ 1-bor laws and visions ^"'^ '" "'"'"^ '^'P^''^' ^""'^ "^^"^ ^" ^^^'^ ^^tailed pro- I"? I 72 ErFICIENCY AND ECONOMY COMMITTEE. h The specific enumeration of all exemptions in the statute is not entirely satisfactory. Some of the exemptions named in the State law are not justified. There may be other positions which should be exempted ; and in framing bills for the proposed reorganization of the executive services, this committee has not been able to determine, in all cases, what positions should be exempted. More flexibility will be secured by reducing the exemptions specified in the law^ and providing a limited authority to make other exemptions. The bills presented will extend the merit system to a considerable extent, and in some cases also provide that the Governor shall have power to exempt posi- tions of administrative responsibility which it is found impracticable to fill by competitive examination — a more restricted provision than those in the laws of the United States, New York, New Jersey, Con- necticut and Wisconsin. The requirement of a formal investigation in every case of re- moval also seems too rigid ; and it is suggested that a provision author- izing investigations before or after removals at the discretion of the commission, with power to make reinstatements when found advisable, should be sufficient. The authority of the State Civil Service Commission over the classification of positions and salaries and the keeping of efficiency records marks the beginning of central supervision over the efficiency of the state administrative services. A continuous supervision over the efficiency of the state service is needed; and to be ef- fective it should be exercised by a permanent state authority, with larger powers than are now conferred to control salaries and other expenditures. It may be questioned, however, whether the functions of such a permanent efficiency and economy bureau can be most ef- fectively exercised by the Civil Service Commission. This work is more properly a part of the general sytem of financial control which it is proposed to vest in the State Comptroller, who should co- operate with the Civil Service Commission, as this Commission is now required to co-operate with the Board of Administration in the classi- fication of positions and salaries of state employees under that Board. Counties and cities should be given the option, by popular vote, of securing the benefits of the merit system, under the State commission, without requiring the additional machinery and expense of a separate commission for each local district. Existing local civil service com- missions should also be subject to some supervision by the State com- mission, by requiring its approval of local rules and regulations, and perhaps by authorizing the State commission to remove local commis- REPORT OF THE COMMITTEE. ^3 sioners for cause after a hearing. There should also be provided an appeal from mumapal fire and police commissioners to the S civH service commission, in cases of removals. PROPOSED BILLS. As authorized by the Joint Resolution creating the Committee bills tTcar/inrStTh' "'" '^ '"^^""^"^^^ •" ''^ ^--' A^-bl^ to carry mto effect the recommendations of the Committee Th^ genera, n^ethod followed has been to prepare a ingle bT^r elch lte7T'1 '"'^"'"^ departments. These severaf bills are close y n.m? i ! * ^' '""'^ °^ '^^ ^hole reorganization may be In some instances the bills to be presented will include a re-enact s"ve albo^'n '^'r °' "^^ ^'^'^^'"^ ^"^^*-*'- law relaig rthe several boards and bureaus proposed to be combined. This has seemed in S ToT""* °T ^~^'^'°"^ °^ ''^ ^"-- State ConsS:„ he ffaminl of h ^^ "?' °^ '''"''"« ^^'' ^^ich make difficult hLr tL 'ho/T^ ^T"^"^ '''' "^" administrative ma- in/a^'rt;.. f°^'^'^ ^^^ '''^ ^*l ^^^ Summary of State Revenues ,,.1^4 11 FINANCE ADMINISTRATION IN OtHER StATES AND COUNTRIES 146-164 146—154 A. State Finance Administration ....146 The State Treasurer .!..!.. 148 Auditor or Comptroller 149 Public Accounting *. ^^q New York State Comptroller "^^^ Pennsylvania Auditor-General * '^^2 Ohio Auditor of State * ' ^^^ Maryland Comptroller 154-159 B. State Tax Admmistration ;^. ^^ Local Assessments : ... 154 Equalization and Review ^ ..!.... 155 State Assessment * "" ^5^ State Tax Commissions C Finance Administration in theUnited States and Other Countries 160-164 United States Department of the Treasury -^^^ The British Treasury Board ^^^ French Ministry of Finance ''^^ Prussian Ministry of Finance ^^ Bavarian Ministry of Finance c,,„„„p.c 165-179 III. State Contracts. Printing and Supplies 165-1/^ A. State Board of Contracts ^^ Printer Expert .167 Comments ^^^ , ^^ , 173-179 B. Public Printing in other btates . . .173 New York *" ^74 Pennsylvania ^75 Ohio v.. 175 Massachusetts ... 176 Wisconsin I77 Iowa 177 Kansas I77 California 180-183 IV. Rkcommenpations ^ Ig0 State Finance Commission ' .182 Local Administration " ' * ^g2 Results to be expected REVENUE AND FINANCE ADMINISTRATION By John A. Fairlie, University of Illinois. I. REVENUE ADMINISTRATION IN ILLINOIS. A. introduction HISTORICAL NOTE. State revenues in Illinois are received from various sources, and the administration of these revenues is carried on by a number of State officials as well as by a larger number of local officials. A survey of revenue administration, therefore, involves a study not only of the several State authorities, but also of the local officials who are charged with the larger part of the work, and of the relations between such State and local officials. The most important source of State revenue is that from the State tax on general property, which is levied on assessed valuations made mainly by local officials, and collected, along with local taxes, by local collectors. Certain duties in relation to the assessment, levy and collection of such taxes are, however, performed by State officials, including the Auditor of Public Accounts, the State Treasurer and the State Board of Equalization. Other revenue is derived from inheritance taxes, assessed on local appraisals with the supervision of the Attorney General's office, and collected by county treasurers. Still other revenues, such as corpora- tion fees, insurance fees and taxes and license fees, are assessed and collected by various other officials, including the Secretary of State, the Superintendent of Insurance and a large number of examining boards. A brief historical statement will serve to outline the main features in the development of the present revenue laws. The first State Con- stitution (1818) definitely provided for taxes by valuation;^ but in practical operation State and local revenues were for a time levied on different bases. Under the early laws, the State depended mainly on a tax on lands ; county taxes were authorized on town lots and a few specified classes of personal property; and town taxes were levied on the land value of town lots.^ A tax law of 1839 more definitely classified property into real and personal, and provided for listing and assessing property on the same basis for both State and local taxes by the county treasurer. In the second State Constitution (1848) a separate article on revenue made more explicit the requirement for a general property tax on a uniform basis ; specified and thus limited the property which might be exempted; and also authorized certain special taxes. The Acts to provide for township organization decentralized the assessment and /This provision was mote definitely stated than in any previous State Consti- tution. ^R. M. Haig; A. History of the General Property Tax in Illinois, ch. 3, Uni- Tersity of IlUnois Studies in th« SocUl Scienctts, vol. 3, noa, 1-2 (1914). I : J N! k 88 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 89 n '1 * ht collection of taxes in the hands of town officials in counties which adopted the township system. New assessment laws in 1853 and 1855 prescribed in more detail the rules for listing and valuing property for taxation. In the third State Constitution (1870) the article on revenue was amended and extended. The uniform taxation of all property was again required; but special taxation of insurance, telegraph and express business and corporations was authorized, as well as special assess- ments in cities ; while limitations were placed on local indebtedness and the county tax rate. A general revision of the revenue law of 1872 forms the basis of the present system for the assessment and collection of the general property tax. This Act continued the system of local assessment by town and county officers for most property, elaborated the rules for listing and valuing property, and provided for the review and equali- zation of original assessments by the county boards. It also reorgan- ized the State Board of Equalization, established in 1867, and added to its power of equalizing county valuations the further authority to value for taxation railroad property and the capital stock of Illinois corporations. This law was at first energetically administered; but a reaction set in at once, followed by a steady decline for 25 years. A Revenue Commission appointed in 1885 reported a year later in favor of important changes in the tax laws and their administration; but without any significant result. In 1894 the Bureau of Labor Statistics published an extended report on taxation, again urging the amendment of the revenue laws. A few years later, an Act of 1898 made some changes in the local administrative machinery for the assessment of property for taxation. This gave the county treasurer, as supervisor of assessments, larger powers of supervision over town assessors in counties under township organization; it reorganized and increased the powers of county boards of review, and it established an elective board of assessors and board of review for Cook County. It also recognized the practice of undervaluation in assessments, by pro- viding that the "taxable value" should be one-fifth of the "full value" of property. This Act led to some increase in valuations; and was followed in 1901 by the Juul law establishing a complicated plan for limiting the aggregate tax rate. In 1909 the legal basis for the assess- ment of property was changed from one-fifth to one-third of full value; and at the same time the maximum tax rate of the Juul law was correspondingly decreased. A Special Tax Commission, authorized in 1909, reported in 1911 in favor of a constitutional amendment to authorize the classification of personal property, the creation of a permanent tax commission to take the place of the State Board of Equalization, with supervision over the local assessors and tax officials, and the substitution of county for town assessors. But thus far no action has been taken on these recommendations. Among numerous Acts of the General Assembly relating to other sources of revenue, mention may be made of the following: A revis- ion of the insurance laws in 1869 authorized reciprocal taxes on foreign companies; an Act of 1895 established a revised and sliding scale of corporation fees; another Act of 1895 imposed a tax on gifts, legacies and mheritances, amended in 1909 by imposing higher and progressive rates. These laws have provided considerable State revenue from sources other than the general property tax. Many other acts pro- vide for examination, license and inspection fees, which yield little or no net revenue above the cost of administration. In order to secure a general view of the present revenue admin- istration, It seems desirable to consider in turn the main sources of revenue, noting in connection with each the officials employed and their functions. B. ADMINISTRATION OF THE GENERAL PROPERTY TAX. In the administration of the general property tax there are three distinct processes involved: First, there is an official valuation or assessment of the property subject to taxation; second, there is the determination of the rate of taxation, and the calculation and exten- sion of the amount of taxes against each piece of property or each property owner; and third, there is the collection of the taxes. . Each of these processes requires separate consideration, and each involves the action of both State and local officials. /. Assessment of property. Most of the work of assessing property for taxation is performed by local officials ; but the action of the local officials is subject to some supervision by State officials, while some classes of property are directly assessed by the State Board of Equalization. ^ ^ -^ Local assessment. Thfe local assessment of property is performed in part by county and in part by town officers; but the officials involved and their dutks tToS^in'thrSt^f^'^T^^fr '^' ^'^'''^' 'y'''^' ^' 1--1 adminlst a- cn,?n V ^\ T ^" ^" '^""^^^'' ^^^^^i" ^"ties are imposed on the and thert. ' 'i^' 'T'^ treasurers and the county boards of review! Sse nffiHl" ^ '"^ lather county or town assessors. The functions o work ofllfelZ7J"'' ^'f ""'"^ ^^ ^""^"^"^ ^^^ ^^^^^ i- ^hich the wurK 01 assessment is performed. of prooertl Trl "'^ n°°I^' ^"1 "^""'^ "'"•'"'^^d '" '^e assessment clerk ffthl H -^ collection of taxes are procured by the county Clerk at the direction of the county board.^ These include seoarpt^ and duplicate (in Cook County triplicate) assessmen books fofrel! propertvTe Vc7T\ '°l ^^f *r"^^'P- ^''^ *« assessment of rea foZh Ll n^7 ^Q I'■^'' f^^ther required, before April 1 of eveo' lots to be assS- Ini' ^\^ '° ™f ' "? '" ^°°^' ^ "^' "^ '^nds and mental litt ff fo ^ ' ^ ?^^^ ^^^"^ *'^^ ^^""^ 0^"^ prepares a supple- sub dTvded/nHr-^"'^, k'' T P-i^^io^s'y 'isted, or which have been are c^£CLZ^T ''"'" ^'%"^ ^^-^'^P'' description. Such books Y'lea lor by the assessing officers in each county. is ex offi'cTo" ountv*.« "^^ '°T''"P "'S^^'^^'^o^ the county treasurer omcio county assessor. In counties under township organization i:^l 90 EFFICIENCY AND ECONOMY COMMITTEE. with less than 125,000 inhabitants, the county treasurer is supervisor of assessments, and as such it is his duty to assemble the assessors and deputy assessors in the county before April 1 of each year for con- sultation and to give such instructions as shall tend to uniformity in the action of the assessors. In these counties an assessor is elected in each township for a term of two years. In Capital Township, San- gamon County, under an optional law, the county clerk acts as assessor. Deputy assessors may also be appointed with the approval of the county board or board of town auditors. In Cook County, by Act of 1898, there is a county board of five assessors, elected for terms of six years, one or two assessors being elected every second year. This board also appoints deputy assessors ; and in each town outside of Chicago a deputy assessor is elected by the town. Every assessor and supervisor of assessments is required to furnish bond that he will diligently, faithfully and impartially perform the duties enjoined by law. Every assessor, deputy assessor and super- visor of assessments must subscribe to a special oath of office ; and any of these officers who shall refuse or knowingly neglect to perform any duty required by law, or who connives at any evasion of the revenue law, is, upon conviction, subject to fine and imprisonment. Before June 1 of every fourth year, each assessor is required, either himself or by deputy, actually to view and determine as nearly as practicable the value of each tract or lot of land listed for taxation. In each intervening year, the assessor is required to list and assess all real property not on the general assessment, and to add the value of new buildings or other improvements, and to make deductions for any destruction or injury to any tract or lot. Personal property is required to be listed under oath by the owner, on schedules which now specify thirty-six items or classes of such property, including both tangible property and intangible property, such as credits, bonds and stocks, subject to certain deductions from credits. Assessors are to call at the office, place of doing business or residence of each person required to list property, and to require such person to make a sworn statement of his taxable property. Whenever an assessor fails to obtain such a statement of personal property, it is his duty to ascertain the amount and value of such property and assess the same. If any person refuses to make a schedule under oath, the assessor shall list the property of such person according to his best judgment and information, and shall add to the valuation of such list an amount equal to fifty per cent of such valuation. In assessing both real and personal property, the fair cash value shall be set down in one column, to be headed "full value," and one- third part thereof shall be set down in another column, which shall be headed "assessed value." The one-third value of all property so ascer- tained shall be the assessed value for all purposes of taxation, limita- tion of taxation and limitation of indebtedness prescribed in the con- stitution or any statute. On or before June 1, the township assessor shall return the assessment books to the county supervisor of assessments, verified by REVENUE AND FINANCc. 91 affidavit of the assessor. The supervisor of assessments has the same authority as the township assessor to assess, make changes or alter- ations in the assessment of property. In Cook County the board of assessors meets in June of each year for the purpose of revising the original assessments, upon appli- cation of any tax payer, and the board shall finish such revision on or bfore July 1. When the assessment is completed, a full and complete list of the assessment is required to be published every fourth year, on or before July 10, in a newspaper published in the county; and in the inter- venmg years the assessment of personal property and changes in real estate shall be published. But in Cook County, the assessment of real estate is not published until it has been equalized, revised or affirmed by the board of review. No report summarizing the work of the assessors is required ; and none seems to be issued. County review and equalization. The original assessments, as revised by the county supervisor of assessment or the board of assessors in Cook County, are further sub- lect to review and equalization by the county board of review in each county. In counties not under township organization, the county board of review consists of the board of three county commissioners. In counties under township organization of less than 125,000 inhabitants, it consists of the chairman of the board of supervisors and two citi- zens appointed each year by the county judge, one from each of the political parties polling the highest vote at the preceding general elec- tion. In Cook County, a board of review of three members is elected one every second year for a term of three years. On or before the third Monday in June of each year, the county board of review shall meet for the purpose of revising the assessment ot property. Such meeting may be adjourned from day to day, but the final adjournment shall be on or before September 7. County boards of review have the following powers and duties : ^^^..YIIa'I '^1 ^^^^^^ ^" property subject to assessment which has not been assessed by the assessors. com^lp^nrlc ;?" <^omplaint in writing that any property described in such 9^mP oi V 11 "''''"^''*^^.^''.^''^^' *° ^^v^«w the assessment and correct the same as shall appear to be just. ner Jrl'Jl'' nLJ^.'"^''^^'? °'" ''^^^''^ .*^^ ^"^^''^ assessment of either real or ment of 1 1 ^^ ^^^" ?^^^ "P^" *^^ P^^P^^ ^^^is, or equalize the assess- thereof in ^1 ° * personal property by increasing or reducing the amount assessors ^^^nship. on notice to property owners and the board of asses^e^n'T.!^ hear and determine the application of any person who is assessed on property claimed to be exempt from taxation. of re^iVw* T'^'^'^y'^^^^^' ^^^" ""^^^ °^ *^^ ^^tion of county boards arieH til K "" . ?^ County, where there is a special board of sal- deal oT . i^^v "^u^ ^ considerable staflF of assistants, there is a good mentf T^ It?" ^^'''^" ^""^ ""^"^ changes made in individual assess- nts. m other counties the members of the boards of review are 1 V i i 92 EFFICIENCY AND ECONOMY COMMITTEE. changed frequently and have little opportunity to acquire experience or develop a continuous policy; and the work done seems to be dis- tinctly less effective. When the board of review has completed its work, the assess- ment books of personal property and one set of assessment books for real property are delivered to the county clerk, who makes and trans- mits to the Auditor of Public Accounts an abstract of the assessment. Comments and suggestions. Many and frequent complaints of the local assessment of property for taxation have been made by tax payers and private associations; and these complaints have been confirmed by criticisms of the assess- rnent methods and results presented in official reports by State authori- ties, such as the Revenue Commission of 1886, the Bureau of Labor Statistics in 1894, and the Special Tax Commission of 1910. Thus it has been shown that the local valuations of property are often a much smaller proportion of the true value than the one-third recognized and authorized by the present law; and that such under- valuations are by no means made on an equal basis, but show great inequalities in the assessment of different classes of property and the property of different tax payers. While real property is assesed with more approach to equality than other property, a comparison of assessed valuations with the census estimates of true value indicates that such property as a whole is assessed at not more than one- fourth of true value ; while in different counties the ratio of assessed to true value of lands ranges from the one-third provided for by statute in some counties to less than one- sixth in other counties. Town lots are assessed at a relatively higher rate than farm lands. The rapid increase in the value of farm lands since 1900 has not been reflected in the assessed valuations. In 1900, the "full value" of lands and improvements of the local assessors was 88 per cent of the census estimate of the value of farm lands and buildings. By the census estimates for 1910, the value of farm lands in Illinois had doubled. But the "full value" of the assessors at the reassessment in 1911 had increased less than a third over the figures for 1900, and was only 59 per cent of the census values. Nor does this undervaluation approach uniformity in different parts of the State. As shown in the table below, in Kankakee and Coles counties, the "full value" of the assessors in 1911 was only 44 per cent of the census values, and the "assessed value" was thus less than 15 per cent of the census estimates. On the other hand, in Hardin County, the "full value" of the assessors was 93 per cent of the census estimates; while in Alexander County, the "full value" of the assessors for 61,264 acres of improved lands was more than the census esti- mates for 82,896 acres of land in farms. REVENUE AND FINANCE. 93 ASSESSED AND CENSUS VALUES OF LANDS. Lands and Improvements. Census valuation column Assessed Full of farm lands and 2 to 7i»^ ^^iV^ buildings column (^^ (2) (3) 3 {Jlf"^!^, 1900 $309,394,797 $1,546,973,985 $1,765 581550 88 Illmois. 1911 690,828,532 2.072 485 596 3 522 792^70 ^0 Alexander County 1911a.. 1,224,604 ' 3.'^3,812 'ssfim HO Hardm County, 1911 543,939 1,631817 17S7S02 oi Winnebago County. 1911.. 8,271.201 24,813603 30 403 422 8? Coles County, 191 1 6.657 477 19.972 431 44*568 563 U Kankakee County, 1911.... 7.175 888 21,527664 49232 564 M Knox County. 1911...- 8.636.622 25 909;866 S44870^ 48 Cook County. 1911 30.567.618 9i;702;852 85;543;087 . for go sti' ac'r1?s of l.;nS"iJlnr^/'''Tf^^'2^^ acres of improved lands; census value ZetSt^'y^'onlfalila^^^^^ unimproved lands were included, the over Town lots show a greater rate of increase in the assessed values m recent years. The "full value" of $1,504,566 in 1900 had risen to nearly double,-$2,827,884-in 1911; and while the value of lots was about the same as that of lands in 1900, it was one-half larger in 1911 The average full value" of lots has increased from $978 to $1,524. .w l^ is probable that the total value of town lots increased during this decade more than farm lands ; but this increase has been to some extent reflected m the assessed values. It may be roughly estimated that the assessors' ''full value" for town lots is on the Average Tbout fnZ'f?\ /lu^ Z^}^^' compared with 59 per cent for lands; and to the extent of this difference urban real estate now bears a relatively tlyatfJn^'''*^''''' '^ '^''"^'^ ""^ ^^'^ ^''''^^"' ""^ ^^^^^ ^"^ ^^""^^ ASSESSED VALUATION OF TOWN LOTS. Average "Full Number of Assessed "Full Value" „, Lots Value Value" per Lot I r °'^ J900 $1,537,823 $300,913,328 $1 504 566 040 $ 978 nimo.s 1911 ..... 1,854,944 942 628 036 2 827'884 108 1 fzA Cook County, 900. 726.416 192,550863 912 754315 lli^ Cook County, 1911. 778,328 680159 026 l&40477n7R lUn O her Counties, 1900 803,407 118 362465 'i5l 81232! '7I? OtherCounties, 1911 1,076,616 . 262;469;010 987;407,030 9?6 as^e^Zt"""/^ '"'°"f deficiencies and inequalities are obvious in the assessment of personal property. As shown in the fallowing table s teacufJ*'H" U^^°/ personalty assessments in the local assessments Under thfi /TV ^^"^r ?l'no'^"' '" '^^^ '° ^<^-^ P" «nt in 1898. proDort on T^"'^^'^ 'r °^ ^^^^ "^"^ ''^^ ''^^n '°^^ '""^ase in the Dronert^ ^ Of personalty assessments. But while the amount of such nroDor fnn I '""«?^«d more rapidly than real estate, and the relative is a <°m,n °"'*^ "icrease, the assessed valuation of personal property 's a smaller percentage of the local assessments than before 1873 '.' ! » 1 ', i i '; f! 94 EFFICIENCY AND ECONOMY COMMITTEE. LOCAL assessments: real estate AND PERSONAL PROPERTY, 1851-1913. Percent ,„_, ' Real estate Personal property personal l^^l $ «6.512.537 $ 33.335.798 27.8 1^1 238.8S8a^Q «n,720.918 252 J871 364.622.620 112.458.194 23.5 1^73 897,615.193 304,518,340" 25.2 ™1 566.270.710 168.674.777 22.9 JS^l 592.766,180 143,529 274 19 6 1^98 572,373.684 114,215,007 165 3901'» 3,440.233.985 1.005,408,720 22.6 12U" 4,900369,704 1.388.157,522 22.0 J^3« ^^. 5,011,633,002 1,528.881,142 23.2 n. "Full vnlne" nssessments. From the fo]lowin.sf table showing the assessed valuation of tlie separate items of personal property for selected years, some com- parisons and deductions may be made. Before the amended revenue law of 1898, two-thirds of the personalty assessments were on tanji^ible property, and about one-third on intanjjible propertv. Tn recent years the proportion of assessments on tangible personalty has declined to about one-third ; but the proportion assessed under the various items of intangible property has not increased materially. The explanation is a remarkable increase in the amount assessed under the heading: "all other property," from $2,735,914 in 1898 to $156,157,636 in 1913. Most of this is in Cook County; and it appears to be mainly lump assessments made against those who, fail or refuse to file schedules of personal property,— thus including both tangible and intangible property. Of the various items of tangible personalty, comparisons with census estimates for some items indicate that live stock on the average is assessed at about the same ratio to true value as farm lands; but agricultural implements and machinery are assessed at a lower ratio; and manufacturing machinery and implements are at a still lower ratio than agricultural implements. Many items of tangible property show absurdly small totals. The great majority of assessments are on house- hold furniture ; and these assessments constitute much the greater part of the local assessor's work in most years. Yet the total assessment for house and office furniture in 1913 was less than in 1873; and the total "full value" assessment was less than $10 per capita. The retijrns on specified items of enumerated tangible propertv show the rnost whimsical variations in the average values for the same items in diflferent counties and in different towns of the same county ; and the totals for certain items indicate that large amounts of such property are substantially exempted by the assessors.* In the cities personal property schedules appear to be seldom filed ; and personalty assessments are largely guesses by the local assessors. Most glaring of all are the inequalities in the assessment of intangi- ble pers onal property, such as moneys and credits, mortgages, bonds * •tT^I^V®'^^® V'"" value" of pianos In 1911 ranged from $1.'>.50 In Perrv Count v iift^iU^i V? Hardin County; of watches and clocks, from $2.50 In Clinton Cmintv to 91V.0U in Rock Island County; only 4.'51 stpambonts and other water craft were assesBed in the entire State, with a "full value" of $750,000. REVENUE AND FINANCE. 95 and stocks. In rural counties mortgages appear to be somewhat better assessed than in urban counties, in some counties, perhaps one-fourth as completely as real estate. But in the cities, and especially in Chicago, the assessed valuation of moneys, credits and other intangible personalty is a much smaller portion of the total assessment and evi- dently only an insignificant part of such holdings are reached/ ^fl^l^"^ ^^"?iol ""^"^^ ^^ ^^^ Bureau of Labor Statistics for the years 1880 and 1887 indicated that the assessed valuation of credits was only from one-third to one-fourth of a proportionate assessment (on the same basis as real estate) for the amount of taxable mortgages in these years. In Cook County the assessed value of credits for 1880 was about one-half of one per cent, and for 1887 about one-tenth of one per cent, of the outstanding mortgages.^ Since then there has been some increase in the assessed value of credits, especially in Cook County. But this falls far short of brin^in? the assessment of such property to the same basis as real estate • and the attempt to assess credits under the general property tax is but Httle less of a farce than it was in the eighties. The "full value" assessed for moneys other than that of banks and bankers m recent years is only about a tenth of the deposits of State and National banks ; and in Cook County is only about one per cent of such deposits.^ ^ Shares of State and National banks are more fully assessed than other forms of intangible property; and complaints are made of this as imposing an unfair burden on such holdings; and also of inequality in the assessment of the stock of different institutions. These general results of the present methods of assessment are WnfthlcfH^'/'r ""^ 'k' ^'^"'^i ^" '^^ 'y''^"^ ^^ administration, the nepH t ^^^^^^^/^^^ ^^ P^^^^ed out, for the purpose of indicating vkinn nf ^ """"'^ thorough and continuous investigation and super vision of local assessing officers and their methods. for .hnrtL^^^ ^'^T^ ^^"^ ^^^- ^ss^ssing officers are locally elected ortr^^.V'^^- n^ "?;.P^o^^sion even aimed at securing competent or trained officials for this work. Moreover the short period of two appeittr^" which the original assessment must be completed Sia Iv in h' v^ insufficient for the amount of work to be done, o?^llrll I^ ""'^'^'^ ^""^ ^^'^ "'^^^^ ^^ffi^^lt '^ ^ot impossible the of the Hiffl " u' ^ P^^"^^"f t staff of assistants, which might meet some QMhe difficulties due to frequent changes in the elective officials.^ nn r'of/^n' ^,^*^'«^^' «f the General Property Tax in Illinois, ch. 8. 44 men with thf"««^'^*^^! appropriation for the year 1911 provided for a staff of townI^Z%o^!,e?w?th''^th''e'Bor/•o5"?i^^^ the 2Weputy a^sSo?s of 'the country for these boardr^f $390 7^0 w^,? fnr ivfi^i^T' J^^^^^lf of the total appropriation deputy assessors in the counfrv /nwnt w! t^^?, *^"^'"/ the assessment period. The "King about $700. (Proceeding? n? tul rl^^.^"?.'''''^ ^^^-^^ ^^ Jt<» ^2,000 each, aver- In Sni li-roceeuings of the County Commissioners 1910-1911.) 1911-12 aSJsL'iSd s'^'is^^ "l^/?/Y° «^,^P.^^^^'"^^^ f^"^ t*^e assessment of property in sl'ip, coexten^sfirurrh tA. /u""^^^^'*'^ ^^^^ *«^ ^^^ assessment of Capital Town- valuation orpronertv T .« i.^^ ""^ Springfield, where there was a thorough re- from $99 to $l50?ag Jrecnt L S^^ ^4 country towns fanged Town Finance8.V*J 1^ Fak-li?" Town^«^ *?f^- ^^- ^' Martin; Report on , *" J. A. i^airiie. Town and County Government in Illinois, p. 210.) ll I 96 EFFICIENCY AND ECONOMY COMMITTEE. 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"-" o CO 03 (U 3 (O CO 03 03 > o O T3 N CO bo CO C-O ;::: o: •o2 CO C O 03 ■<-• O a 1-1 o CJ ^w ITH C^ •♦-' •rt *^ OJ IJ O O c 03 4= p u o u o 03 -^ ^ CO d 03 O 03 o . o ^ -J « eS <^ >-< > 08 ''MM ■w COO? •* 0)001 0) 0)1-1 •^ C3 ' £a 0) o CiQ « != -S^ *^ ^ ^ OiS*" ^ 0) o 03 01 h E hi •CO- BJ00 • • . • 98 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. ii assessor's "full value." 1901 1911 1913 Horses $ 61,943,355 $105,447,135 $105,597,908 Cattle 59, 138,655 50,296,803 53,072,850 Mules and asses 5,944,155 13,627,284 13,951,050 Sheep 2,297,815 2,361,195 1,469,976 Hogs 16,109,745 16,269,628 17,313,285 Live stock $145,433,725 $188,002,245 $191,405,169 Manufacturing implements and machinery 12,240,265 13,196,145 14,859,607 Agricultural implements and ma- chinery 15,270,420 26,037,237 28,620,526 Material and manufactured articl 13,408,505 24,710,649 28,967,346 Merchandise 11 1,598,585 134,159,157 128,466,789 Grain 37,288,945 33,683,124 37,181,721 Carriages and wagons 17,972,365 18,343,866 24,349,073 Steam engines, including boilers. . 6,489,620 9,559,251 9,603,843 Fire and burglar proof safes 760,555 819,300 729,571 Billiard tables, etc 148,030 355,932 384,4aS Steamboats and other water craft 850,030 747,087 705,090 Property of pawnbrokers 200,350 386,62b 942,369 Property of corporations not enumerated 9,496,060 15,136,671 10,662,042 Bridge property 322,660 445,176 466,281 Property of saloons and eating , houses 930,070 1,546,809 1,611,489 Total tangible productive '. personal property $367,43 0,18 $467,129,274 $478 , 955 ,730 Household and office furniture... 47,313,960 51,334,206 55,443,315 Pianos 5,952,165 11,076,702 12,082,134 Melodious and organs 1,696,490 803,991 618,378 Sewing and knitting machines. . . . 2,593,015 2,364,930 2,224,266 Gold and silver plate and plated ware 550,795 727,794 924,243 Diamonds and jewelry 1,059,910 1,517,925 1,762,803 Watches and clocks 2,649,015 2,141,937 1,908,665 Total tangible non-productive personal property $ 61.815,850 $ 69,967,485 $ 75,063,804 Total tangible personal property. $428.746,030 $537,096,759 $554,019,534 Money of bank, banker, broker and stock jobber $ 21,851.655 $ 38,293,677 $ 48,096.939 Credits of bank, banker, etc 12,062,525 25,127,046 26,781,558 Moneys other than banks, etc.... 81,983,775 106,576.437 105,357,307 Credit other than banks, etc 121,358,225 113,314,336 113,551,674 Bonds and stocks 13,964,840 27,385,551 19,422,168 Shares of companies not of this State 6,882,940 4.485,285 5,845,122 Investments in real estate and im- provements thereon 2,792,315 3,291.441 2,769,357 Shares of State and National banks 257,393,210 158,634,105 183,589,419 Franchises 158,905 346,047 401,868 Annuities and royalties 230,570 84,996 360,753 Patent rights 31,885 46,806 212,535 Total intangible personal prop- _^ erty $ 518,720,845 $ 477,485,727 $ 505,378,700 All other property 57,441,845 373 ,578,036 468 , 472.908 Grand total personal property.$l,005,908,720 ^ 1,388, 160,522 $1,528,871,142 99 An examination Of local conditions should show to what extent these defects are realized or obviated, and how far, if at all, improved methods of assessment have been voluntarily introduced. For exampk it would be of interest to know the number of deputy assessors and their experience, what use is made of tax maps in the assessment of land values, how far a system of unit values is employed, the method for determining the value of corner lots and irregular shaped ^ts the persoTs Lseslld Z'rf ''' T^"^ '' buildings, Ihe totarnuXr'S Even in counties under township organization, a lar^e part of the work connected with the assessment of property s now nerfo^ed officials acting independently of each other. The countv clerk furnishes the assessment books and lists real property and preoares liTstll^^^^^^^ ^-".^>^ treasu'rer'^ctl a^^t'pleS o revTew and tl.. T^ ^ ^f ^' ^-PP^^"'' ^^'^ "^^"^^ers of the board ot review and the board of review revises the local assessments ln\'Z:£.7^^^^^ ^^-^ ^ ^^^^- organTzltioTaTdTome h^^pkn W ^""""^^ supervision of town assessors, while it has also been proposed to establish a county system of assessment in P ace of the township officers. There should be n^rmatio^Sb le as to the work now done by the county officers. For example what own tsTs'sor;'"."H f '" ^' ^'^ ^"^^^^^^^^ ^^ assessSto th coun assessors, and to what extent does he alter or change thl th^wo k'dlTh'^ll' ''"^^'\^' -^^^ '^ ^^^ extent and character o rnnflTcf K . ^V^^ "^^""^^ boards of review, and how far is there cotl^SrT:? rt-ewf" ^^ ''' ^"^^^^^^ ^^ --~ -^ the of in^u'r^ \"o 'cZt'and ^.^ ^^^^^ -"^^^ions can be secured by letters n^^cl! 1 • ^op"ty and town officials. But there is also neerl fr.r While ft wilf'^^'^K ""^ examination of local office td recorfs to other counties * '"'*°'^'' ^°"'^ ^^ °^ """^f' ^^'"^ temaSair'^so asto t^"i'" ^"? ^r?*5?*'°"^ °^ '»«' conditions sys- ation of he revenue iTt. wlir ^'''- '^''^"'*' information as to the oper- adequate powers an^r^^Jes''"''' ' P'"^"^"* ^'''' ^"*°"ty, ^ith ^tate Assessment. relatio„°'to°tL'aLe's"smenT'o7 P°^':' 7''"^ '" ^'^'^ ^"'^orities in 'he State Board of Fr.°.'?''°P^1y ^°' t^'^**'"" ^'^ conferred on Auditor of Pubnri.l^^'"u"°"- ^"* ""^" *e revenue law, the ot Public Accounts has certain powers and duties, in connec- 100 EFFICIENCY AND ECONOMY COMMITTEE. I- :i| tion both with local assessments and the functions of the State Board of Equalization; and these may be noted before examining the reor- ganization and functions of the board. It is the duty of the Auditor to make out and to forward to each county clerk, from time to time, for the use of such clerks and other officers, suitable forms and instructions; and all such instructions are required to be strictly complied with by the officers in the performance of their duties. Schedules as to the capital stock of certain classes of corporations and also as to railroad property are also to be made in conformity to such instructions and forms as may be prescribed by the Auditor of Public Accounts. The Auditor is also required to give his opinion on all questions of doubt as to the true intent and meaning of the revenue law. Little appears to be done under these provisions. Forms and schedules have been sent out at occasional intervals covering the specific provisions of the revenue law ; and copies of the revenue law have been printed and distributed— the latest Auditor's edition appears to have been in '1908. But no instructions have been sent out for many years ; and there is no established practice of securing opinions from the Auditor as to the meaning of the revenue, law. Abstracts of local assessments and schedules from railroads and corporations are forwarded by the county clerks to the Auditor of Public Accounts; and schedules of railroad property are also returned directly to the Auditor, for presentation to the State Board of Equalization. When this board has completed its work, its action is reported and certified by the Auditor to the several county clerks, for use in extension of taxes. The State Board of Equalization. Organization. As first constituted in 1867, the State Board of Equalization con- sisted of the Auditor of Public Accounts and one member from each of the 25 senatorial districts in the State. The first members were appointed by the Governor for a term of two years; and their suc- cessors were to be elected, one from each senatorial district, for a term of four years. The board was required to meet on the first Tues- day in October, and could continue in session for fifteen days, which, was extended to thirty days in 1869. Each member received $8.00 per diem, with an allowance for mileage and stationery. Under this Act, the authority of the board was limited to the equalization of the aggregate valuations of property made by the local assessors in the several counties. In 1872 important changes were made in the constitution and ^wers of this board. The number of members was reduced to one elected from each congressional district. At the time there wer^ seven- teen of these districts; but additions to the number of Illinois repre- sentatives in Congress have gradually increased the size of the State Board of Equalization; and since 1904 it has the same number (26) as in the original board of 1867. Members are elected at the same time as presidential electors and serve for four years. The date of REVENUE AND FINANCE. IQl meeting of the board was advanced in 1872 to the second Tuesday in August, and the limit on the length of their sessions was omitted, while the compensation of the members was reduced to $5.00 per day with mileage and an allowance for stationery. Beginning with the board elected m 1908, each member of the board receives $1,000 per annum with mileage and stationery allowances. The date for the first meeting each year has been changed to the first Tuesday after the tenth dav of August. ^ By the revised revenue law of 1872, the authority of the board was enlarged. In addition to its former power of equalizing local assessments, it was made a board of original assessment to value for taxation the railroad track and rolling stock of railroads and the capital stock of corporations organized under the laws of Illinois. At the first meeting of each board, quadrennially, it organizes by ThfA^nT ^^ i^\;"^^b^^^ ^s .chairman, and appoints a secretary The Auditor of Public Accounts is regularly elected as chairman; aZd the chief deputy of the Auditor is appointed as secretary. The board IS also authorized to select such employees as may be deemed necessary; but the number of employees is limited by the le-isladve appropriation, which in recent years has been $10,000 a year The fol- lowing statement of expenses for the session of 1912 willgive some indication of the extent of the staff and its activities. Salaries of members, each $1,000 * • • • 9.55 1 5 9.22 2 10 10.33 13 5 7.94 • • 5 8.88 10 > • • • 6.73 4 • • 10 5.03 • 1 15 4.15 9 • • 5 Number of Counties Unchanged Personal Year Property Lands Lots 1869 1 2 41 1870 5 4 1 ]lll 10 10 11 1872 13 17 ^. 1873 1 1874 2 1 1875 10 1 1876 4 6 4 1877 I \ I 1878 9 8 9 1879 3 4 7 1880 5 i3 I 1881 2 3 7 1882 16 5 7 1883 12 4 1^ 1884 15 4 y. }|5 23 it ii ^ 13 5 21 \^ 24 8 30 1^90 19 8 20 1891 io - ^, 1892 ::::;::••• 6 lo 29 1893 ••• 5 ^5 29 1894 ^^ I 21 1895 21 IR I7 1896 i\ }g 42 1897 • " 43 leoo 49 38 14 {g^ 39 • 19 42 1900 ;.':::;::::;;;;;•;;; "^8 I ^1 1^2 ^" 26 99 1^3 All 17. 98 1^ All 35 79 1965 ^" 35 77 im: i^l 52 83 1907 "^^ 56 83 ml ^" 92. All 1909 "^^ ^ All 1910 ^" All All " All All All 1911 1912 AH 92 98 1913 ^!! All 101 All 94 95 Number of Counties Highest Average Percentage In- De- Added De- creased creased ducted 38 64 152 55 29 72 129 43 38 63 122 38 40 62 116 41 43 58 141 39 44 53 104 37 42 55 102 26 40 58 74 33 42 59 74 23 42 55 79 23 39 57 79 22 33 65 74 25 33 61 51 42 29 70 49 31 27 68 42 28 33 66 63 36 32 67 45 40 31 68 49 35 17 82 52 35 26 72 48 31 41 55 53 34 28 68 46 31 31 56 63 31 30 64 58 35 29 64 73 2S 20 71 45 27 51 45 28 14 7 93 16 30 43 34 32 28 45 38 24 17 19 51 20 32 20 51 20 31 8 48 18 17 6 47 11 15 4 6 6 4 2 4 5 3 3 10 1 5 1 3 6 9 14 8 106 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 107 ii''>: •f! EQUALIZATION OF LOCAL ASSESSMENTS — STATE OF ILLINOIS — BY STATE BOARD OF EQUALIZATION, 1867-1913. (Compiled from proceedings of the State Board of Equalization.) Total Valuation By Local Net Amounts Net Amounts Equalized Year Assessors Added Deducted Valuation 1867 $ 501,340,350 $ $ $ 504,683,553 1868 471,531,518 471,550,966 1869 488,195,932 489,098,133 1870 480.031,703 480,664,058 j f I j 1871 499,636,900 1872 508,875,848 1873 1,194,687,281 1874 1,105,658,176 1875 1,025,428,289 1876 958,405,803 1877 892,380,972 1878 818,887,409 1879 744,742,846 1880 739,462,515 1881 746,034,852 1882 750,635,758 1883 756,422,291 1884 746,547.501 1885 733.533,951 1886 726,178,132 1887 726,078,638 1888 709,304,506 1889 711,515,026 1890 727,549,707 1891 738,504,791 1892 745,754,172 1893 760,837,855 1894 737,989,016 1895 743,840,153 1896 731,215,488 1897 713,736,999 1898 693,443.706 1899 895,869,090 1900 779,513,078 1901 891,936,529 1902 921,817,117 1903 994,300,650 1904 993,487,940 1905 1.008,138,674 1906 1.033.441,227 1907 1,138.724,046 1908 1.139,292,406 1909 1,944,595,135 1910 1,990,107.626 1911 2,104,161,547 1912 2,122,102,455 1913 2,188,891,903 a. Not including city of Qnlney. 30,145,142 31,614,035 200,900,705 179,678,489 116,510,133 104,834,528 82,862,324 55,768,390 49,303,583 46,198,329 48,610,342 42,746,795 41,582,923 40,985,448 38,914,314 52,915,868 47.536,656 47,489,586 52,607,461 47,136,432 73,218,940 54,936,378 50,464,088 55.070,104 48,257,939 53,568,912 48,422.435 55.668,294 8,775,694 26,584,298 8,595,652 8,246,087 3,678,763 3,889.753 1,730,966 1,328,911 1,248,930 675,997 412,653 '3;68i;694 24,005.631 29,604,035 198,709,881 176,902,864 116,013,544 104,417,062 82,790,951 55,768,109 49,290,919 45,825,725 48,401,048 42,543,628 41,481,025 40,718,234 38,744,382 52,259,180 46,669,790 45,592,168 48,134,943 45,439,662 70,514,548 53.037,836 49,006,144 52,679.093 43.011,519 51,131,488 45,097,200 49.625,360 29,805,561 79,051,273 9,083,635 10,746,500 20,764,441 20;792,754 20.765.300 19,116,476 1,350,578 688,814 3,859,082 199,209 1.150.098 505.676.311 510,886,683 1.196,788.105 1,107.893.344 1,025,924,878 958,823,269 892,452,345 818,987,690 744,755,510 739,835,119 746,244,146 750,838,925 756,524,189 746.814.715 733,703,883 726,834,820 726,945,504 711,201,924 715,987,544 729,246,477 741,209,183 747,652,714 . 762,295,799 740,380,027 749,086,573 733,652,912 717,062,234 699,486,640 874,839,223 727,046,103 891,448.546 919,316,704 977,214,968 976,584,939 989,104,340 1,015,653,662 1,138,622,398 1,139,299,589 1,944,595,135 1,990,107.626 2,100,715,118 2,121,903,246 2,190.822.899 Assessment of railroad property. Before 1873 railroad property in Illinois, except that of the Illi- nois Central Railroad, was assessed by local assessors in much the same way as real estate and personal property owned by individuals. Under the revenue law of 1872, the State Board of Equalization is required to assess the railroad property denominated in the Act as "railroad track" and "rolling stock." Since then the valuations by the State board for railroad track and rolling stock form much the greater part of the assessed valuation of railroad property, although some railroad property is still assessed by local assessors. ^ For purposes of taxation railroad property is classified under five divisions : (1) The right of way, including superstructures of main, side or sec- ond tracks and turnouts, and the stations and improvements of the rail- road company m such right of way, held to be real estate for purposes of taxation, and denominated "railroad track."a (2) Movable property (locomotives and all manner of cars) belonging to the railroad company, held to be personal property for purposes of tax- ation, and denommated "rolling stock." (3) Real estate, including stations and other structures, other than that di^s"ri?t" ''^ ° ^^^^^" ^'^*^^ ^^ ^^"^^ ^"^ ^°*^ '"^ *^^ ^^^^^ ^^""^"^ Tu- (."*) P;f "onal property other than that denominated "rolling stock" 1 his includes tools and material for repairs, office furniture and the like. {i)) Ihe capital stock, or rather the excess value of the capital stock Ut any; over the valuation of the several classes of tangible property. r tt'^^ v^^^*' second and fifth classes are assessed by the State Board of liqualization ; and the third and fourth classes by the local assessors. Every person, company or corporation, owning, constructing or operating a railroad in the State is required to make out and file with the county clerks of the counties in which the railroad may be located a statement showing the property held for right of way, and the length ot all tracks in such county, and in each city, town and village in the county; also the value of improvements located on the right of way and must annually report the value of such property and all additions or changes in such right of way. A schedule with a detailed inventory ot the rolling stock is also required. The county clerks are required to turnish to the Auditor a detailed statement of the "railroad track" ana rolling stock" reported to them by the railroads in other coun- rnu- ■^t''^?"^* property and real estate other than railroad track and rolling stock must be listed and assessed in the local taxing districts. At the same time as the returns to the county clerks, sworn state- P,!Kr ^a"" ^^^^^"^es are also required to be returned to the Auditor of rubhc Accounts, as follows : nf fhl^^^'- ^^ the property denominate4 "railroad track" giving the length portion^n^" 'h^ '^^^^' '!f^"^ }'^'H ^"o^ *"^" °"t^' ^"^ ^^owfng the p?o- portion in each county, and total in the State. in eacWonnt J?!^ 'wi'"^ ^u""^^" ^^"^^1^ J^^ ^^'^^^^ ^^ ^^e main track Thi^A Ju *^^ *°*f^ '" *^f ^^^*^ ^"^ the entire length of the road, iron Vl''^?' ,^h°^^"^ the number of ties in track per mile ,the weights of 1^ or steel per yard, and in main and side tracks ; what joints or chains to what''l^*inrt^^ho?1®" ^ number of Important judicial decisions on questions as Illinois' il#°X^,-3^at^l| noMnchided ln^ra«road track." See Kales and^SSnS! Tl 108 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 109 '. I -I are used in track; the ballasting of road, whether gravel or dirt; the num- ber and quality of buildings or other structures on "railroad track;" the length of time iron in track has been used, and the length of time road has been built. Fourth: A statement or schedule showing the amount of capital stock authorized and the number of shares into which it is divided ; the amount of capital stock paid up; the market value; or if no market value, then actual value of the shares of stock; the amount of indebtedness, except for current expenses for operating the road ; and the total listed valuation of its tangible property in the State. The statements are to be made during the month of April of each year. In case of failure to make returns, the Auditor is required to ascertain the necessary facts and lay them before the State Board of Equalization. Any company or person failing to make the required statements, shall forfeit not less than $1,000 nor more than $10,000 for each offense, to be recovered in any proper form of action. The Auditor is to lay before the State Board of Equalization the statements and schedules required to be returned to him ; and the board shall assess such property. The board is given power, by committee or otherwise to examine persons and papers ; but it does not have power to compel the attendance of witnesses or the production of papers as evidence. The published proceedings of the board give no evidence as to what extent the schedules are received from the rail- road companies or what other data are presented to the board ; but it is known that representatives of the companies appear before the com- mittee on railroad property. Under the rules of the board, the report of this committee should lie over for two days before action; but this rule is regularly suspended and the committee report adopted as soon as presented. As finally determined, the assessed valuation of railroad property shows for each railroad separate valuations .for main track, including right of way, for buildings on right of way, for second track, for side or turnout tracks and for rolling stock. No information is published as to the basis on which the valuations of any of these items or of the total is determined. The assessment valuations as determined by the State Board of Equalization are certified by the Auditor to the county clerks ; and the county clerks in like manner distribute the value so certified by the Auditor to the several towns, districts, villages and cities in their respective counties. The value of "railroad track" is listed and taxed in the various counties in the proportion that the length of the main track in such county or district bears to the whole length of road in the State, except the value of side or second tracks and turnouts and all station houses, depots, machine shops or other buildings, which are taxed in the district in which they are located. The valuations of "rolling stock" are also apportioned on the basis of the mileage of main track in each district. , At the first assessment by the State board in 1873, the valuation of railroad property was more than five times that of the previous year, while other property was increased about half as much. The railroad valuations for this year seem to have been excessive ; and there was a reduction of forty per cent in 1874, followed by further reductions for several years. After 1879 the assessed valuation of railroad prop- ^Qo^oTif'^T '"''•^ ^^m" ^^f^ ""^ ^*^^^ property until 1890; but since 1898 the advance m railroad valuations has been at a lower rate than that of other property. In 1898 the valuation of railroad property '^^'iniP^'' ""^"^ ""^ ^^^ ^^^^^ valuation for the State; in 1912 1913 and 1914 it was was not more than 8 per cent of the total. The per- centage of railroad taxes to earnings has declined from 13 per cent of net earnings m 1890 to 1 per cent in 1911, and from 4.75 of gross earnings in 1890 to less than 3.5 per cent in 191 1.« Moreover, as between the various railroads, the ratio of taxes to earnings shows wide variations While some roads show smaller gross earnings than taxes paid m Illmois, one of. the most important systems pays little Zd' n F'^ Tl ^^ ^"^'^ ^^^"^"^^ ^" t^^^^' ^"^ ^^veral important roads pay only 6 to 7 per cent of net earnings in taxes. While the assessment of railroad property by the State Board* of Equalization is better than the system of local assessments before 1873 the valuations in recent years cannot be considered satisfactory' Further information as to the methods of valuation used by the StaTe wou d ifjT"'^ ^^ovough study of the value of railroad property! would be of service in forming a more conclusive judgment as to the ITUi n^A.^'^'fr^"'' ^^ '^' ^'^'^ ^^^'^ of Equalization.- nnhhV nn V ^ "! ^^' ^l^^^^ ^^^ assessment of the property of other S uch nronVrt ^'"ifr "' '^'''''^'^' '' ^^"^ralized in a st^ate authority «ut such property in Illinois is assessed by local officers exceot for the small amount assessed for the capital stock of corporations? Assesstnent of capital stock. was ^J'atVJ^^. "'"'^""^ ^^ ""^ ^^^2 ^^^ St^te Board of Equalization was required to assess the capital stock of each company or corpora aveToTveff ""t H ^'^ ^^^^ °^ ^^^^ ^''''' La^er "LmendTnts, Stat; hn7T' excepted important classes of corporations from the and mercaltL ""l^^^'^'^ ^^ P-^^^ manufacturing printh^rofftTi^rKi- V ^^' l^^ "^^"^"^ ^"^ '^^^ ^^ ^«^I' «^ for and bre;d?n. nf ^,^^P"bJ,^shlng of newspapers, or for the improving ana breeding of stock. Banks are also excepted. ^ ^ requireTriZtiort^il'^^ assessment by the State board are to the bcal asse -r ^^ ^"^ '''^^' P'^P'''>^' ^^ "^^^^ ^^^ ^"^ deliver forth pardc^lar?^^ ^ ''"'''" ''"''"^'"' ^^ ''' ^^P^^^^ ''^^^' ^^«ing s!r 'a '^^L''^"'^ ^""^ ^^'^*^°" °f *h^ company or association. __^esro'whi!?f ssr-^i sTo^ir^^d"'^^^^^^' ^^^ ^^^ --^- °f incrJ^Xr ^^^^^^ as -vhole^the^ratio^ of ^^^^^^^^^^ taxes to net earnings has ''^"iSi^^^^^^^ tfo "o?i 1 y Si I rr^'^^^^^^^^^ I • *m* mm^m^mims^^ i^Qt .: i«^,K.;tl^■ :f. • «; 110 EFFICIENCY AND ECONOMY COMMITTEE. Third : The amount of capital stock paid up. Fourth: The market vahie, or if no market value, then the actual value of the shares of stock. Fifth: The total amounf of all indebtedness for current expenses, ex- cluding from such expenses the amount paid for purchase or improvement of property. Sixth : The assessed valuation of its tangible property. In case of failure or refusal to make such statement, it is the 'duty of the assessor to make such return or statement from the best information he can obtain. Such statements shall be scheduled by the assessor, and the schedule and statements shall be returned to the county clerk, and forwarded by the clerk to the Auditor, who lays them before the State Board of Equalization. From the beginning many corporations have failed to make the required returns; and many of those made have been defective. The local assessors have also failed to make returns in many of these cases. In 1873, and for some years following, the State board made efforts to secure the required information, but with little or no success. The Attorney General and the Supreme Court have held that under the present law the board has no power to enforce the making of returns.^* The revenue law provides that the capital stock of each company shall be so valued as to ascertain and determine its fair cash value, including the franchise, over and above the assessed value of the tangi- ble property, and authorizes the board to adopt rules and principles for ascertaining this value as to it may seem equitable and just. The rules first adopted and continuing until 1900 provided for determining the value on the basis of the market value of stocks and bonds, less the assessed value of tangible property. In practice the board also equal- ized the value of capital stock with the local assessments. In 1900, new rules were adopted, which were declared invalid; and in 1901, another set of rules were adopted returning to the basis of market value of stocks and bonds, with other information obtained by the board, and definitely providing for equalizing capital stock assessments with the assessment of other property throughout the State. In operation the capital stock assessments have been of little importance. In 1873, the board assessed 207 corporations for an aggregate of $20,730,057 ; but this rapidly declined to 33 corporations for an aggregate of only $1,605,783 in 1877. From 1880 to 1900 the total valuations for capital stock ranged between $2,000,000 and $7,- 000,000, but with some increase in the number of corporations assessed. As the result of a suit begun by the Teachers* Federation of Chicago in 1900, the State board was compelled to make an additional assessment on certain public utility companies in Chicago. Since then the number of corporations assessed and the assessed valuation of capital stock have been increased. But both the number of corpora- tions and the capital stock assessments have fluctuated irregularly. In 1909, the board assessed 1,168 corporations for the maximum iiProceedinss of tke State Board of Equalization, 1874, p. 5. St. L., V. ft T. H- Ry. Co.. V. Gurrell, 88 111., 535 (1878). REVENUE AND FINANCE. Ill assessment of $35,394,441; a year later 2,154 corporations were assessed, but the total amount was only $30,265,148; in 1913, there were 708 corporations assessed for an aggregate of $29,373,194,' little more than one per cent of the total assessed valuation of prop- erty in the State. Most of the corporations are assessed for small amounts— less than $5,000 each— and the great bulk of the capital stock assessments are on a few public utility companies in Chicago. In 1912 only an even dozen corporations were assessed for as much as $100,000. The capital stock valuations and assessments made by the Illinois State Board of Equalization are much below the ''corporate excess" assessments in the smaller State of Massachusetts, and the amount of capital stock reported to the United States Commissioner of Internal Revenue, from corporations with their principal offices in Illinois. It has been held by the Supreme Court that corporations excepted from assessment by the State Board of Equalization are subject to assessment on their capital stock by the local assessoVs.^^ ^^^ ^^^^ corporations are not required to return statements as to their capital stock; and the local assessment of capital stock is even less efficient than by the State board. No provision is made in the revenue law for assessing the capital employed m Illinois by corporations organized under the laws of other states and countries. The failure to make anything like adequate assessments of capital stock IS due m considerable part to defects in the provisions of the revenue law and to the lack of adequate authority on the part of the btate board. But a good deal may also be ascribed to the organi- zation and methods of work of the State board. The large member- ship and occasional meetings of the board are not adapted to the systematic and serious investigation of the problems before it, and it appears evident that the board has for many years ceased to make any ettort to secure information other than that voluntarily submitted. IN or has the board made any serious effort to secure any additional powers to carry out its functions more effectively. Box'S*"?2«'Jn^^^i^?®.^.k,9x**' J- ^"^e^' 236 111.. 149 (1908); People v The National «ox Co., 248 111.. 141 (1911) ; People v. Federal Security Co..' 251 lU.! 561 (19^12). 112 EFFICIENCY AND ECONOMY COMMITTEE. \ EQUALIZED ASSESSED VALUATION OF TAXABLE PROPERTY IN ILLINOIS, 1873-1914. (Compiled from proceedings of the State Board of Equalization.) it:,' M- 'i'l 1873a 1874 1875 1876 1877 Equalized Valuation of Property Assessed By Local Assessors . . .$1,209,574,387 .... 1,107,893,344 .... 1,025,924,878 958,823,269 .... 892,452,345 .... 818,987,690 .... 744,755,510 .... 739,8;J5,119 .... 746,244.146 .... 750.838.925 .... 756,524,189 .... 746,814,715 .... 733,703,883 .... 726,834,820 .... 726,945,504 .... 711,201,924 . . . . 715,987,544 .... 729,246,477 .... 741,208,183 . ... 747,652,714 . . . . 762,295,799 . . . . 740,380,027 . . . . 749,086,573 . . . . 733,652,912 . . . . 717,062,234 . . . . 699,486,640 .... 874,839,223 . ... 727,046,103 . . . . 891,448,546 .... 919,316,704 . ... 977,214,968 976,584,939 .... 989,104,340 .... 1,015,653.662 .... 1,138,622,398 . ... 1,139,299,589 .... 1,944,595,135 . ... 1,990,107,626 .... 2,100,715,118 . ... 2,121,903,246 .... 2,190,822,899 .... 2,214,900,530 Assessed R. R. Track and Rolling Stock $ 59,317,408 43,529,716 32,163,644 28,819,832 37,141,180 36,410.516 37,649,670 44,601,815 51,377,932 56,758,984 59,162,102 60,267,186 60,987,317 62,972,101 66,517,478 68,620,719 71,352,453 72,974.396 74,626,553 77,108,390 79,531,738 79,276,824 79,319,385 78,996,324 78,582.786 76,554,845 75.912,042 77,878,672 83,181,778 85,619.042 88,321,224 t^ 88,947,961 91,748,866 95,131,416 100,203,968 103,425,144 175,683,593 177,217,578 185,045,732 190,035,709 199,045,526 206,353,729 by State Bo Equalization Capital Stock of Railroads $64,611,071 31,314,175 22,649,222 10,106,258 ard oi Capital Stock of Other Cor- porations $21,898,451 11,719,216 4,802,112 3,373,751 1,605,783 1,837,556 2,218,370 2,179,460 2,191,488 2,397,986 2,218,430 2,087,902 3,791,623 3,756,577 4,289,906 5,089,231 4,857,545 6,671,909 6,273,693 6,549.202 5,363,979 4,994,777 4,782,509 4,030,384 4,050,833 2,433,425 2,348,203 b4,808,630 21,497,943 22,705,627 15,166,104 13,032,412 12,942,970 12,662,101 10,608,000 18,683,448 35,394,441 30,265,148 30,563,450 27,734,277 29,373,194 31,178,125 Total Equalized Valuation of Taxable Property $1,355,401,307 1,194,456,451 1.085,539,856 1.001,123,110 931.199,308 857.235 762 1878 1879 1880 • ••• •••• •• 784.623,550 786.616 394 1881 799.813.566 1882 1883 • ••• •••• •• 809,995.895 817.904.721 1884 809.169.803 1885 1886 1887 • ••• ■••• •• • ••• •••• •• 798,482.823 793.563,498 797.752.888 1888 784.911.874 1889 792.197.542 1890 808.892.782 1891 822.109.429 1892 831.310.306 1893 847.191.516 1894 1895 1896 1897 • ••• ••■• •• • ••• •••• •• • ••• •••• •• 6^ .,. . 883.1."" 816,679,620 799,695,853 1898 778.474.910 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 • ••• •••• •• • ••• •••• •• 3,103,562 2,651,062 2,348,683 1,906,680 1,885,381 3,215,978 2,539,940 2,092,306 2,975,281 2,111,684 1,996,062 3,228,894 3,120,333 3,313,415 953,099,468 809,733,405 9^,231,829 1,030,292,435 1,083,050,979 c 1,080,471,992 1,095,681,557 1,126,663,157 1,251,974,306 1,263,500,487 2,158.648.450 2,199,701.976 2,318,333.241 2,343,673,232 2,422.361,952 2,455,745,799 III! a. Including city of Quincy. b. Original aBsessmtiit. c. Corr«cttd figoni. REVENUE AND FINANCE. 113 Proposed tax commission. ■ «;^''\ k'^'* ^°'''"\ °i ^Equalization thus appears clearly to be an inefficient body in each of tlie three divisions of its work— in the equal- ization of local assessments, in the assessment of railroad property and in the assessment of the capital stock of corporations. This has been recognized in earher investigations, and recommendations have been nwde for its abolition and the establishment of a smaller and more efficient body. The Revenue Commission of 1886 proposed the cre- ation of a small i'tate Board of Tax Commissioners." The special lax Commission of 1910 reported as its opinion of the State Board of Equalization that : "The large membership of the board, its elective character, its madequate powers and the short time which is allotted to it to perform Its duties, prevent it and would prevent any similar board from becom- ing a very effective body in the administration of the tax laws." The latter commission recommended the establishment of a per- 's,t?!"R ^^ <^ommiss.on of three members, to take the place of the State Board of Equalization and with larger powers of supervis on over local assessors, and powers of investigation and recommendltton .1 A ■ .J uf- ^'?'* equalization or assessment of property is placed m the hands of a single commissioner or of a small board borne of the smaller states have state boards of equalizatir composed salaH.°d ^'.'° ""^""^^'V b"t '" "°^e than half of the'states there aTe now lire ?s a TZ'?""" "' ''^'' ^°'"^' °^ ^^^^^^°"- 1" Ave states VeiTOont wT^^Z- ■''■ '^°™"?'^^'0""-Massachusetts, Connecticut, veimont West Virginia, and Wyoming. A small board of tav commissioners was established in Indiana in 1891 ; and similar boards Kansas LhaVk^^' 7-^''f^%'l'^ Washington (in 1905), Minnesota, Sr(Vitiol!taHLi;^ '^Ih^i^^r ^"^ °^^^°" ^- ''^^' east ^;^'MLf^j^r=7]^zz^ ^:Lt:^ mmlli::;: n' /h''ntv^t ■" ^'''''°" "^^^ -^ suchTommfssion' n North r^' ^•°'"' P^''°'*' ^^"^^^' ^"'^ Colorado in the central west, ouSwei .n^H ^A^t^"'^'' ■^'^^^' ^"^ ^"^°n^ •« the south and Coast!^' ' '"Washington, Oregon, and California on the Pacific membil-?* ^^^"'^^ of tax commissioners are usually composed of three ofTheTenar wfth ^^1 '^' ^ovemor-in most cases with the consent and Kansas) T^ $ ^nm"'' --ang.ng from $2,500 a year (in Michigan The powers of fh'^ u ^^a' ^"^ ^^* ^'"^- ^^'°- ^"^ Wisconsin), state, -k!^ . ^°^^^^ "^^'■y to some extent in the dilTerent Countries. ^^"""^ ®' **^*« '«»<>'* on Finance Administration in Other States and ! .1 i; 114 EFFICIENCY AND ECONOMY COMMITTEE. assessors, and in some cases decide on appeals from local assessments ; and they have authority to investigate the general system of taxation throughout the state. In the states where these permanent tax commissions have been established there has been a notable improvement in the admmistration of the tax and assessment laws. Assessed valuations have been largely increased, both in the case of local assessments and still more in that of corporate property assessed by the state board; and at the same time the assessments have been made more uniform and equitable. This has been brought about not only by the direct action ot state boards, but also by investigation into local conditions and conferences with local officials. Bills for the creation of a State Tax Commission were intro- duced in the Illinois Legislature in 1911 and 1913; and a bill for tins purpose passed the House of Representatives in the latter year. 1 he need for such a commission and its advantages over the present arrangements in Illinois have been already demonstrated. But this report on the methods of local assessment and of the State Board of Equalization and its committees may serve to make more emphatic the inefficiency and waste of the existing arrangements, and the urgency, of more efficient administrative machinery for taxation. The question may also be raised here as to the advisability of going further than has yet been proposed in the organization of an etf ective control over State revenues and finances. The tax commission as hitherto proposed would deal only with the administration of the general property tax, and in some bills its powers have been limited to the as'oessment of property for taxation under the present laws. The assessment of the capital and other property, not assessed by local assessors, of all classes of public utilities and corporations in Illinois including those organized under the laws of other states and countries as well as those organized under the laws of this State shou d be centralized in such a State authority. Still larger results could be secured by the creation of a revenue commission, with jurisdiction over the whple subject of State revenues from all sources. Still tur- ther a State Finance Commission, with jurisdiction over both revenues and expenditures, and with appropriate bureaus for different phases of its work, would provide a comprehensive organization for the administration of the State finances. These later suggestions go further than any of the states in this country ; but something of the kind is provided in the department of the treasury in the United States government ; and all of the govern- ments of Europe and Latin America have such a comprehensive department of finance. A study of finance admmistration in the national government and in foreign countries, as well as in other states, will be of service in suggesting plans for a general organization for the State of Illinois." "Chanees which have been proposed In the system of taxation have not been discussed fn this report The authority of the Efficiency and Economy Committee does not extend beyond the reorganization of administfatlve machinery ; and for fhis reason. It has not seemed advisable to consider important changes in the sub- 8tantiv« law. REVENUE AND FINANCE. 2. Levy and extension of taxes. 115 Long before the assessment and equalization of property is com- pleted, the various tax levying authorities have taken steps towards determining the amounts to be raised by taxation, under laws author- jzing the levy of taxes and limiting the amount for each class of ^luthorities. At the close of the regular session of the General Assem- bly every second year, an act is passed authorizing the levy of State taxes for amounts named for the current and following year; and in addition there are at times permanent provisions authorizing an annual tax for certain purposes, as the one mill university fund tax authorized in 1911. The proper authorities of towns, townships, districts and incorporated cities, towns and villages are required, on or before the second Tuesday in August of each year, to certify to the county clerk the several amounts which they severally require to be raised by tax- ation. The county boards of the respective counties are required annually, at the September session to determine the amount of all county taxes to be raised for all purposes. It should be noted that the local tax levies are determined some months after the beginning of the year for which the levies are made ; while the application of these levies to the property owners follows the levies, and the collection of taxes does not begin until nearly the end, and in many cases after the end, of the year for which they have been levied. This situation makes it necessary for the various authorities either to carry over balances from the previous year, or to borrow in anticipation of taxes. State tax rates. Following the tax levies comes the process of determining the rates of taxation. On the completion of the assessment and equalization of property (which occurs in December), the Governor, Auditor and Treasurer are required annually to ascertain the rate per cent required to produce the amount of taxes levied by the General Assembly. The Auditor is required to compute and certify to the county clerks the separate rates per cent ,as will produce the amount of State taxes authorizd to be levied for each fund. The method of authorizing the amount of State taxes and of determining the State tax rate is by no means satisfactory. The amounts authorized by the General Assembly are presumably based on th appro- priations, after allowing for revenue expected from other sources than the general property tax. But there appears to be no official report giving the total appropriations and the estimated revenues from oher sources, so as to show the amount necessary to be raised by taxation. Moreover, as the taxes for any year are not received until after nine "^ m\^^ the fiscal year has elapsed, the expenditures for that period would have to be delayed or paid out of temporary loans were not arge balances ordinarily carried over from year to year. In practice the tax rates determined have usually provided for thF^^u ^^^^^ which aggregate more, and at times considerably more, inan the amounts authorized by the General Assembly, but some times i; J ..^y.'. ■■-\'~r^-*.»^^ 116 EFFICIENCY AND ECONOMY COMMITTEE. I!. ! have amounted to less. Such action has been sustained by the Supreme Court on the ground that allowance must be made for commissions and probable losses in collections.^^ This situation makes the determi- nation of the tax rate not merely a m-'nisterial duty of calculating he rate, but a function calling for judgment and discretion. Usually the amounts collected have been more than the amounts authorized ; but for some years the amounts collected have been less than the amounts authorized. From the following table it appears that in the seventies the taxes levied were largely in excess of the amounts authorized, but the amounts collected were usually not much above the amounts author- ized. In recent years, the taxes levied and the collections for the year 1909 exceeded the amount authorized by more than amdbon dollars ; while the levies and collections for 1899, 1900, 1902, 1905, 1906, 1911, and 1912 were less than the amounts authorized. The practice of naming a rate higher than necessary to yield the amount authorized by the General Assembly l«d to the accumulation of considerable balances from which payments could be made in the period before the current year's taxes were paid. But the low rates in 1911 and 1912, while yielding enough revenue, with the former ba - ances to meet the appropriations of 1911, did not leave a sufficient bal- ance to meet the appropriations made in 1913 before the time when the taxes for that year became payable. The procedure in authorizing State taxes and in determining the rate should provide for more definite statements, both in the form of estimates and reports of results. The tax levy bill should be based on statements showing the total appropriations and the revenue esti- mated from each source. The report to the next session of the Gen- eral Assembly should show not only the tax rates determined, but also the amount of taxes levied and the amount collected under this rate ; and should also compare the revenues received with the estimates presented at the previous session. It should also be more clearly recognized that the taxs levied by one General Assembly must be depended on to furnish revenue to meet a large part of one years appropriations to be made by the following General Assembly. "Edwards v. People 88 TIL 340 (1878). In an earlier case, part of the State tax was enjoined, because the State officers liad fixed the rate so as to im-lude certain municiia debts under a statute held to be in conflict ^vith the State Constitution. Ramory v. Hager, 76 111. 432 (1876). In the later case two judges dissented. REVENUE AND FINANCE. STATE TAXES IN ILLINOIS, 1871-1914. (Compiled from reports of Auditor of Public Accounts.) 117 Year Appropriations 1871 $ 1872 1873 1874 1875 .1876 1877 6,562,653 1878 1879 6,584,364 1880 1881 6,605,399 1882 1883 7.342,742 1884 1885 7,776,458 1886 1887 7,940,412 1888 1889 7,396,737 1890 1891 8,757,901 1892 1893 9,032,514 1894 1895 10,055,800 1896 1897 11,178,902 1898 1899 12,499,655 1900 1901 13,273,686 1902 1903 15.467,3i6 1904 1905 15,889,364 1906 1907 26,208,146 1908 ... }^y9 19,857:596 \l\l 29,658,175 }9i3 :".::;:: 37;9i5,457 State Tax Authorized 1.700,000a 3,500,000 2,500,000 2,800,000 2,500,000 3,000.000 2,500,000 2,200,000 2,500,000 3,350,000 2,500,000 2,400,000 2,500,000 3,000,000 2,500,000 3,800,000 3,200,000 2,700,000 2,700,000 2,500,000 2,500,000 2,500,000 2,500,000 4,000,000 4,000,000 4.900,000 4,000,000 4.300,000 4,300,000 4,500,000 4,500,000 5,500,000 5,500,000 6,000,000 6,000,000 6,000,000 6,000,000 6,100,000 6,109,000 9,750,000 9,750,000b 13,600,000b 13,000,000b State Tax Rate Cents • ■ 75 36 24 30 28 36 33 27 36 48 36 32 35 42 35 53 44 38 36 33 31 31 31 52 55 66 56 42 50 50 40 52 55 50 50 50 50 35 30 35 38 70 48 Amount of State Tax Charged $ 4,525,964 3,948,357 5,054,435 3,440,477 3,966,596 3,610,997 4,185,661 3,614,855 2,712,635 • 3,202,289 4,067,060 3,098,013 2,748,111 2,965,449 3,485,083 2,889,479 4,318,959 3,526,608 3,075,600 2,974,920 2,768,887 2,628,317 2,676,101 2,616,900 4,378,186 4,544,229 5,319,433 4,413,495 4,061,840 4,111,622 5,219,122 4,315,147 5.852,493 6,172,998 5,568,310 5,845,058 6.379,029 6,458,081 7,724,912 6,760,560 8,307,578 8,900,000 16,940,000 a- Plus 20 cents school tax and 15 cents canal redemption fund, b. Pius 10 cents University Fund Tax. Amount Paid State Treasurer $4,177,711 3,527,377 3,793,270 2,578,422 2,861,374 2,755,978 2,961,773 2,917,047 2,123,239 2,840,807 3,706,323 2,847,810 2,534,028 2,739,799 3,142.307 2,707,327 4,083,618 3,358,693 2,884,876 2,823,504 2,630,930 2,948,569 2,524,131 2,478.495 4,187,406 4,332,368 5.063,375 4,187,557 3,848,943 3,915,628 4,824,164 3,967,708 5,434,065 5,757,093 5,296,871 5,446,164 6,134.961 6,107,259 7,283,519 6,400,132 7,826,122 8,614,920 ^1 118 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 119 1 1' Local Tax Rates — Juul Law. The determination of local tax rates and the calculation and extension of the taxes on each parcel of real property and each owner of personal property are duties imposed on the county clerks, in the preparation of the collectors' books. The county clerk in each county is to ascertain the rates per cent required to be extended upon the assessed valuation of the taxable property in the respective towns, townships, districts, incorporated cities and villages in his county, as equalized by the State Board of Equalization for the current year,^ to produce the several amounts certified for extension by the taxing authorities in said county. But, under the Juul law, this duty is com- plicjfted by elaborate provisos limiting the aggregate tax rate and requiring the reduction of rates when the total exceeds the maximum. The statutory requirements regulating the tax limit form a most curi- ous and confusing medley. Taxes for certain purposes are excluded from the reduction process ; and taxes for other purposes may not be scaled below certain minimum rates.*^. The result is that while the nominal maximum of all taxes is three per cent of the assessed valuation, the total of the tax rates finally determined is in many places much above this rate. Thus in 1911, the average tax rate for the entire State was 4.12 per cent; and the county average rate was more than four per cent in ten counties, and more than five per cent in three counties, and the total rate in many cities was more than five per cent. The tax limit law appears to have been enacted primarily to limit the aggregate taxes in Cook County. In many of the other counties little or no attention seems to be paid to the provisions for scaling down taxes above the maximum named ; and in these and other cases taxes are calculated and extended on the collectors' books which do not comply with all the requirements of the law. In some cases where this happens, the collection of taxes is restrained by court proceedings on behalf of railroads and other large tax payers; while the great majority of tax payers pay the amounts extended on the collectors' books. • Other difficulties are caused by the unequal operation of the vari- ous limits on different classes of authorities. Some taxing bodies receive ample or even unnecessary amounts, while others are so closely limited that they are unable to meet even the most necessary expenses. Moreover a large levy from one district will at times require the reduc- tion of rates of all the taxing bodies throughout a larger area, at times below the three per cent limit in some parts of the larger district. Various suggestions have been made to secure a more general and stricter compliance with the tax limit law before the taxes are com- I'Tax rates may not be reduced below the following figures: Coolc County. Other Counties. For county purposes 40 cents 45 cents For city or village purposes 110 cents 120 cents School tax for educational purposes 105 cents 150 cents Taxes excluded from the process of reduction include State taxes, village taxes, levee taxes, school building taxes, high scliool taxes, district school taxes, road and bridge taxes, and for three years from lftl3 taxes to meet principal and interest on bonded debt and judgments. There are also other taxes for school buildings, librar- ies, parks and drainage districts. puted and extended. But the most serious trouble is caused by impos- ing a uniform and mechanical schedule of rates throughout the whole State without regard to different local conditions. These difficulties are accentuated by tlie multiplex variety of local taxing authorities in Illinois ; and there should be steps taken to consolidate and reduce the number of such bodies. Whether or not this is done, better results might be hoped for by concentrating the responsibility for the final decision as to the distribution of taxes within each county in one body with some discretionary power. Extension of Taxes. When the tax rate for each of the taxing bodies has been ascer- tained and determined, these rates are extended by the county clerk upon the assessed value of the property subject thereto, as equalized. These extensions are made in books prepared by the county clerk for the use of collectors, with correct lists of taxable property as assessed and equalized. In counties under township organization, these books cor- respond with the organized townships ; in other counties, they are made up by congressional townships, but fractional townships may be added to full townships. Separate books may be made for incorporated cities, towns and villages. Each book is required to be ruled so as to show the original assessed valuation, the valuation as corrected and equalized by the county board of review, and the valuation as equalized or assessed by the State Board of Equalization; and with columns for the extension of the several kinds of taxes and to note any tax sales for the two preceding years. Where real property has been forfeited for taxes, the amount of back taxes, interest, penalties and printers' fees are to be added to the taxes due. The calculation and extension on the collectors' books of the amount of tax for each taxing authority against each piece of real estate and each owner of personal property involves a large amount of unnecessary clerical work. If this was not required the fees for extendmg taxes could be reduced. ^ n ^^^^ collector's book a warrant must be annexed commanding the collector to collect from the persons named the several sums entered opposite their names ; and directing the collector to pay over the several kinds of taxes collected to the respective officers entitled thereto, less the compensation for collection. When the collectors' books are completed, the county clerk is required to make out and forward to the Auditor a certified statement ot the assessment and taxes on blanks, and in conformity to instruc- tions forwarded by the Auditor. ■ • 3' Collection of Taxes. t;, The procedure for collecting taxes, for recovering delinquent laxes and for making settlements between the collectors and taxing authorities are regulated in detail by the revenue law. In counties unuer township organization, a town collector is elected in each town- _^P^cl the county treasurer acts as county collector^^ In counties the cU? o^f''chiSSf•^flnH^^n*'5?J?^^ treasurer is also town collector for the towns In '"r <'ajital Towfshin li?.h^°^^"'®'l County, the county treasurer is town collector collectors of 8nS«^^k«r"'*' J^ coextensive with the city of Springfield. In cities "I special assessments are also provided. i,i 111, ■MM 1, I!' ;l :;■■ 'f- I! 0. 120 EFFICIENCY AND ECONOMY COMMITTEE. not under township organization, the sheriff is district collector and county collector. Each collector must subscribe to the oath of office and execute a bond, to be recorded as a lien against the real estate of such collector. Collectors* bonds must be approved by the county board or by the supervisor and town clerk of the town; and county collectors' bonds must also be approved by the Auditor of Public Accounts. Provision is also made for vacancies in the office of col- lector ; and collectors are authorized to appoint deputies and to revoke any such appointment at their pleasure. On the second day of January following the year in which taxes are levied, the county clerks are required to deliver to the town, dis- trict or county collectors the books for the collection of taxes; and also to furnish the county collector with a certified statement giving the name of each town or district collector, the amount of taxes to be collected and paid over for each purpose in each of the several towns or districts, cities and villages. • Town and district collectors. Every town collector is to call at least once on the person taxed, or at his place of residence or business, if in the town, and demand payment of the taxes charged to him on his property. In counties not under township organization it is the duty of the collector to give notice (by newspaper and posting notices) stating -when and where he will attend in each precinct for the purpose of collecting taxes therein. Whenever any person pays the taxes charged on any property, the collector is required to enter such payment in his book, and give a receipt therefor. In case any person, company or corporation refuses or neglects to pay (personal) taxes imposed on him or them, when demanded, it is the duty of the collector to levy the same, together with the costs and. charges that may accrue by distress or sale of the personal prop- erty of the person, company or corporation who ought to pay the same. At least five days public notice shall be given of the time and place of sale, and such sale shall be by public auction. Provision is made for the collection of taxes from persons who have removed from the town or district. Every thirty days, town and district collectors are required to render an account to the county collector of State and county taxes, and pay over the amounts collected; and similar statements and pay- ments may be required every thirty days by the proper authorities of incorporated towns, cities and villages, road and school districts. Town and district collectors are required to return the tax books and make final settlements on or before March 10, or on a day with- in twenty days thereafter fixed by the county collector. In counties under township organization, each town collector is required to furnish a detailed statement showing the unpaid taxes, also the causes of failure to collect personal taxes verified by affidavit. Such collectors are given credit for the commissions on taxes collected and for unpaid taxes. REVENUE AND FINANCE. 121 County collectors. County collectors have the same powers, and may proceed in the same manner for the collection of any tax on real or personal property, as town or district collectors. On or before April 10, after settlement with the town or district collectors, the county collector is required to make and file with the county clerk a sworn statement showing the total amounts of each kind of tax received by him from the town or district collectors, and the total amount of each collected by himself. The clerk is required to certify to the Auditor and the proper authorities or persons, the amount for which the collector is required to settle with them severally. On or before April 15, the county collector is required to pay over to the State Treasurer the taxes in his hands payable to the State treasury; and within the same time to pay over to the other proper authorities or persons the amounts payable to them. When demanded by the proper persons, the county collector is required to report and pay over, at least once in every ten days, the amount of tax and special assessments collected by him on delinquent property and due to towns, districts, cities, villages, corporations and persons. Un the first of every month, the county collector is required to report to the county clerk the amount of county tax received by him during the preceding month. Notice of judgment proceedings. All taxes on real estate unpaid at the time the town or district collector makes return of his books are deemed delinquent; and all such due and unpaid taxes bear interest after the first day of May at the rate of one per cent per month, until paid or forfeited ; and such taxes, with interest penalties and costs, are a prior and first lien on such real property from and including the first day of April in the year in which the taxes are levied. :.uA ^^ ^"^ ^'"^^ ^^^^^ ^""^^ ^^y ^^ ^P"^ next after delinquent taxes ana special assessments become due, the collector shall publish an for .'.If T""^' PT,? ""^^^'^ ""^ ^^^ intended application for judgment be n^fhr u r^"^^ ^^ielinquent lands and lots. Said advertisement shall which ;1'h ^! -^^^'^ ^H""^ ^^^^^ P'^^^^"^ t^ the term of court at of\TJr^T''^ '' ^l^^^"^' ^""^ ^" applications for judgment and order sLuL f""^^ ^""^ f^^""'^^ assessments on delinquent lands and lots shall be made at the June term of the county court. apDlitVnf f.^""^ '!f^' ^^^°'^ ^^f commencement of ihe term at which "HO a book n?' J^^f^^nt IS to be made, the collector shall transcribe sa e r.H ^J^P^^e^ i""' the purpose, and known as the tax, judgment o s' mainour "^ '^''^'^\-^^/--ord, the list of delinquent lanL ^nd to be recorded. "^""^'^"^^ ^'^"'' ^'^^' ^^^ the information necessaiy collector at ^nv't^ \^'f '^'l '^''? ^^^ ""'^^^ ^^^^^e^' to the counfy to report^' ^Z Tl^^u'^'u ^^' f ^^'* ^^^ '' '' ^^^ ^^ty of the collector asses^^'en^ ZlXtJ^^il ''"'' '"' '""'^ ^" "'^^' ^^^^^ ^^^ ^^^^^ . 7 I I i mM 122 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 123 tj C Court proceedings. The county court is required to examine the list of delinquent lands and lots, and if defense (specifying in writing the particular cause of objection) be offered by any person interested in any of said lands or lots to the entry of judgment against the same, the court shall hear and determine the same in a summary manner, without pleadings, and shall pronounce judgment as the right of the case may be. The court shall give judgment for such taxes and special assessments and penalties as shall appear to be due ; and shall direct the clerk to make out and enter an order for the sale of such real property against, which judgment is given. Appeals from the judgment of the court may be taken during the same term to the supreme court, on executing a bond that the appellant will prosecute his said appeal with effect, and will pay the amount of the tax assessment and cost which may finally be adjudged against the real estate involved in the appeal, and after depositing with the county collector an amount of money equal to the amount of the judgment and costs. Tax sales. If judgment is rendered by any court, at any time, against any lands or lots for any tax or special assessment, the county collector, after publishing the required notice for sale, shall proceed to execute such judgment by the sale of lots and lands against which such judg- ment shall be rendered. On the day specified in the notice, the county collector, in person or by deputy, is required to attend at the court house in his county, and offer for sale each tract of land or town or city lot on the list, on which taxes or special assessments have not been paid. The sale is to be continued from day to day until all the tracts or lots shall be sold or offered for sale. At such sale, the person offering to pay the amount due on each tract or lot for the least per centage thereon as penalty (not less than 25 per cent) shall be the purchaser of such tract or lot. Every tract or lot so offered at public sale, and not sold for want of bidders, shall be forfeited to the State of Illinois. But on certificate that the taxes on forfeited lands equal or exceed the actual value of such lands, they may be offered for sale to the highest bidder. The county clerk, in person or by deputy, is required to attend all sales of real estate for taxes and assist at the same. He is required to examine the list upon which judgment has been rendered and certify to its correctness ; and when a tract or lot is sold it is his duty to enter this on the record with the name of the purchaser; to make out and deliver to the purchaser a certificate of purchase, and to make out and transmit to the Auditor a transcript of the sales for taxeswithin twenty days after such sale. Redemption — tax deeds. Section five (5) of article nine (IX) of the State Constitution pro- vides for a right of redemption from all sales of real estate for taxes for a period of two years, and for notice to the owners or parties interested. The revenue law provides for such redemption on payment of the amount for which the property was sold together with later taxes and the amount of the penalty, the latter being gradually increased from the amount bid to four times that sum during the last six months of the two years in which redemption may be made. After the expiration of two years from the sale of real estate for taxes or special assessment, if it has not been redeemed, the county clerk shall execute and deliver to the purchaser a deed of conveyance for the real estate, on request and on production of the certificate of purchase, and upon compliance with the provisions of the revenue law in regard to notice to the owners or occupants of such property. Such deeds are prima facie evidence of certain facts as to the legality of the sale for taxes. If the holder of the certificate of purchase does not take out the deed and file the same for record within one year after the tinie ^or redemption expires, the certificate or deed shall be null and void. - i Final settlements. On or before the third Monday in June, the county collector is required to make out and file with the county clerk a detailed state- ment of unpaid personal property taxes and of errors in assessment of real estate and errors in footing of tax books. The county clerk is required to certify to the Auditor of Public Accounts and to other authorities the valuation of property and the amount of taxes and special assessment due thereon for which the county collector may be allowed credit. As soon as adjijstment is made with the county board or county clerk, the county clerk is required to make out and deliver to the county collector the statements, certificates and lists appertaining to the settlement of his accounts. The collector is required to deliver the same at the office of the Auditor and make a final settlement of his accounts and pay the amount due to the State treasury on or before the first day of July next after receiving the tax books. Upon the final settlement of any account with the State, the Auditor shall give the collector duplicate certificates; and it is the duty of the collector to file one of said certificates in the office of the county clerk before the first day of August. If any collector neglects or refuses to file such certificate, the county clerk shall give written notice requiring him to appear before the county court at the Septem- ner term to show cause why he has not filed the certificate ; and if the collector does not show that he has paid over the full amount due and made a final settlement with the State and county, or that he has a lawful excuse for failing to do so, his office as collector and treasurer snail be declared vacant by said court. A H-V^^" ^^^ failure of any collector to make settlement with the ^uditor, or to pay money into the State treasury, it is the duty of the en]] ?^ *o sue the collector and his sureties upon the bond of such tak n^' ^^ *° ^"^ ^^^ collector in such form as may be necessary, and aKe all such proceedings, either upon the bond or otherwise, as may oe necessary to protect the interests of the State. )*■ ■ 1 1 I'i ■ : i < i i M ■SBBSe 124 EFFICIENCY AND ECONOMY COMMITTEE. !^t! iiiS d I: Cost and Efficiency of Collection. Tax collectors are allowed commissions at fixed rates per cent, deducted from the amounts collected, on the following scale." In Counties of Class 12 3 .... Per "tint Per cent Per cent Town and distnct collectors 2 2 2 Collectors in cities and incorporated towns, not over. . .2 2 County collectors in counties under township organiza- tion on moneys paid over by town collectors Ij^ 1 f^ County collectors in counties under township organiza- tion on moneys collected by them for cities and villages 1 1 1 County collectors on moneys collected by them 3 2 Ij^ County treasurers on moneys received and moneys paid out 1 1 j4 In counties under township organization, county treasurers are not allowed any additional commission on moneys received from town collectors on which they receive commissions as county collector. Additional fees are allowed in cases of delinquent taxes, which are added to the amount of the taxes. County collectors are also allowed ten cents per mile for each mile of necessary travel in going to and returning from the seat of government in settlement of State taxes. Where the compensation of town and district collectors is insufficient, the town or county board may allow an additional com- pensation or per diem, to be paid out of the county treasury. On the other hand, all excess of commissions and fees for town and district collectors over $1,500 in counties of the first class, and over $3,000 in counties of the second class shall be paid into the town or district treasury; while the town board of auditors may fix the maxi- mum amount at a lesser sum. But in all cases the commissions are deducted from the amounts collected and before payment to the various public authorities. The total commissions range from a minimum or Ij^ per cent on collections by the County Collector in Cook County, to a maximum of 4y2 per cent on collections by town collectors in counties of the first class under township organization. The totals for the several classes of counties are as follows: On Collections by Town or District County Collector Collector Per cent Per cent In counties of Class 1 without township organization 2 3 In counties of Class 1 with township organization 3 3^ In counties of Class 2 without township organization 2 2 In counties of Class 2 with township organization 3 2 In counties of Class 3 (Cook County) 2^ 1% It may be noted that the commissions are higher in the small counties of the first class than in the more populous counties ; but that the total commissions allowed in counties under township organization are more than in counties of the same class not under township organi- zation. The following statement, compiled from the records in the office of the Auditor of Public Accounts, throws some light on the results of the present system of tax collection in the several groups of counties ; ^^urd'B Revised StatutM (1013) eh. 6S. sees. 21, 86, 38. REVENUE AND FINANCE. 125 C/3 o o (4 o t/3 H Z u H < n < exi » H O Q Z < o tn t/j o u Q M H U M •-) O U Q < o 53 n u I !3 I CO s o oj a; cti :3 o'oi2 ^ ^^ o L) U) ^ Ui .SJ . ooooo CM —. CO 00 On Ui H O U o t/i o U C o OiOi— • ooo\o t>^rOO '-^'ocTco t^OOON o o t^POri- COC>t< Onco O •-^ON CM C^l \0 o\ (A n o H ooo\Ti- O Tf rrj roOiO COOn^co CO On -^ m u O u 'o u O ■r" •*-• en "o U ^o 03 O o ■t-> T3 "O (/) a; w 0*0 'o HUL) ooo vdod fOCO to S CO vd^cvT CM'u-J ON'^i- CvjfO vOrC LOfM tOLO 00 1>! IT) t^ CVJ o oCinT nQOn nOOO t>* 00 rOvO ONTf CM o to c .2^ e e o o en C o 2£ 6 o u O O cia 4Ji ooooo t^ OnnQ So odcvi t< t^ c<^ •— < CM ON^co On \o"i-h CM PO \0 On nOqnO OOOOCM r-Hp \0 "^ CO 00^ no" if uo On o lO fO CM vONOi-i CM^t^ vO Ono nO On On f*0 '-;O00t^ PONOvd— i <^Looo -^ CM "^ CO CM CO CM '—no 00 On nOio tv! t^' ro On CM '-J On (Nj LOOCM^^ t^ CM "-H^cvf CO CO "^ On \0 O COOOO coOOOrf ON'i'-H 00 nO nO r-( (\) "^"oToCinT o r- ( tN; T-t ,— I OOONQr-J ON CM 00 CO 00 O »— I CM S '^vOTf-.-H 1— ; p i>. CO ■^lOt^ ro nO On^co CO tNTcM-^^OO '— ' O t^ CM CM »-• »-H "o .y o o .^ c •= -- -"I o§ll S^^^ "^ O On On 00 1-1 Onco ON l-O 00 00 lo CO vo^oo On OOlo C^f vOO 00 CM CM OOO CO On LO •-C rf Cvj CO CM 00 X^ CO nO CO >— I UT) '-'l>^ON cm" LOOON o vd '-J 00 ON^ '-'t^CM OrOr-H ■^ ro u-j COO \0 r-TcM lOvOt^ CM^On On on'cmi< Orft^ CO lO -"^ COOCtJ-"^ CM lOlO >-0 NO On "^co en a cs cn 0^ 3 3 ?5 ^ gc/2c/5 rt a; (u > > y_4 a^H 'I— ( rt O o u O o l-l 4-> o i.) . *J 126 EFFICIENCY AND ECONOMY COMMITTEE. g 5 M H (/> t/1 ^.2ooo xxxxxxxx oooooo oooooooo ro 00 C\ LT) "^ ro '— < -^ \0 O '— ' 00 "-^ 0\ oO'-;o\ppp po^.-;o\ppp a n 8 (0 z Q 8 u O I— t H O u u < 1 H u M o\ CO o I CD «; a> c< . t^ Lo OcoOM-" O fvi O (NJ»-^ cOcoa^ ON OsO J2 S o (J o u CM o CA d •5; CM CO (A o £ o u o (A (3 o CA CA a o (A C o CA • S O (« ^ O "^ O o c S ^o ^ o •^ e c*.-cA ^ = -^ ,0*0 3, — w HUUHUH •-• csi ro -^ in \0 o O O o CA c o CA CA £ o CA 'o t^Ovrsjo\r^.-HfMco T^l— CA C o c o CA Ui (U Ck G O 5 o CA ■*-•.— £ ««"•- O > ^ goo £«- CA qj U X (A c £ •♦J en a u T3 cs CA (A (A o (U c o Ui ii c/T (A CA c« 5 « *- •- S Xi 2i &? « 3 p rt tA tfl ^ ,^ u .oOoNO^H >. >> > a> 4; r > > O V Ct o u ♦>> _ t> w o CSJcO-^iOnO CA J3 a> o re;venue and finance. 127 Collectors* Commissions. Some striking contrasts are shown in the above table between different groups of counties. In counties of the second class and in those of the first class with township organization, from three- fourths to four-fifths of the taxes are collected by the town collectors ; while in Cook County (third class) only about one-half is collected by the town collectors, and in counties of the first class without town- ship organization little more than a fourth of the taxes is collected by the district collector, and nearly three-fourths by the county collector. The last situation is probably explained as a natural result of the commissions allowed. In counties without township organization, the sheriff is both district and county collector. On collections as dis- trict collector he is allowed commissions of two per cent; while on collections as county collector he is allowed three per cent. Under these conditions, it is to the interest of the collector to collect as large a proportion as possible as county collector. On the other, hand in counties under township organization, it is to the interest of the town collectors in most towns to collect as large a porportion of the taxes as possible, and thus receive a larger amount in commissions. But in some towns containing cities of some size, where the town collector's compensation is limited, the town collectors are less active, and they seem to be satisfied when the commissions on their collections amount to their maximum compensation. Thus in 1909, in Rock ford, Evanston, and Joliet, the town collectors collected Dnly from 43 to 53 per cent of the taxes collected ;2o and in Sangamon County in 1912, while in the rural towns nearly three-fourths of the tax collections were by the town collectors, in Capital Township (Springfield), only about 60 per cent of the taxes were collected by the town collector.^^ In Cook County, where the county treasurer is town collector for the towns in the city of Chicago and also county collector, the com- missions allowed on taxes paid to him as town collector amount to 2^ per cent; while on taxes paid him as county collector the com- missions allowed are 1>^ per cent. The increased State tax for the year 1913 will nearly double the amount of commissions allowed on this tax to the local collectors; while their work will not be appreciably increased. The total amount of commissions allowed on State taxes for 1912 were $217,644,14, or 2.38 per cent of the State taxes charged. On the total amount of property taxes levied by all the public authorities in !u 1^^^* ^^^ commissions allowed for collections amount to more than $2,000,000 a year. Some readjustment of the method of compensating tax collectors IS needed. If the system of percentage commissions is to be continued, eff 7^f^ should be revised, to avoid the present incentives to lax ^^wtsj)y the town and district collectors in some parts of the State ; StuS|-ti?reial'sTe^fc^s?^J?"f Jfo'^^r^^^^^^ '^ "^^^«^«' (University of Illinois i- Repor?o?'ii;'J"join'l'regis'lStive^ Committed' ''^ '^""^' ^'"' '"^ '^"^^"^^" ^^""'^' 128 EFFICIENCY AND ECONOMY COMMITTEE. { pf 'ii' i and the compensation allowed should be better adapted to the present scale of taxes levied, and to the different conditions in rural towns and in cities. Other Abatements. The statement of State taxes for 1912 also shows other abatements from th amount of taxes charged, analyzed so as to show the princi- pal classes of such abatements. From this it appears that in addition to the collectors' commissions, a considerably larger amount of the taxes charged were reported as not collected. Nine-tenths of these abatements are reported from Cook County, where the total of com- missions and abatements for several years have amounted to more than eight per cent of the taxes charged. More than four per cent of the taxes charged in 1912 for this county were uncollected on account of real estate forfeited ; and more than two per cent were uncollected on account of insolvencies, removals, etc., on personal property. This means that more than five per cent of the taxes on real estate were not paid; and more than eight per cent of the taxes on personal property were not paid. Several other counties also have a high percentage of abatements. The following statement shows the counties where the total abatements from the taxes charged for 1910, 1911, and 1912 were more than five per cent. It will be noted that several counties appear on the list for each year. From the records in the office of the Auditor of Public Accounts, the abatements in different counties are due to different factors. Thus in 1912, the high proportion of abatements in St. Clair and Marion counties were mainly on account of real estate forfeitures ; those in Pulaski County were largely on account of unpaid taxes on personal property ; and those in Madison, JoDaviess and Saline coun- ties were due to other causes, such as errors in the assessment or injunction proceedings. AMOUNT AND PERCENTAGE OF ABATEMENTS FROM STATE TAX. For the Year ending September 30, 1910. Amount Total Per- ^ounty. Charged Abatements c^ntage St- Clair $ 105,30276 $ 9,194.56 8.73 Massac 8,93478 633.50 7.09 Hardm 2772.39 194.09 7.00 Frankhn 16,723.18 1,150.11 6.87 Sahne 15,252.54 1,048.62 6.87 Marion 22,356.95 1,465.80 6.55 Pil^e 30,313.18 1,948.99 6.42 Pope 5,564.11 336.03 6.03 (jrundy 36,030.55 2,133.86 5.92 Pulaski 7,028.54 371.66 5.28 Randolph 21770.85 1,11571 5.12 Total— 1 1 counties $ 272,049.83 $ 19,592.93 7.20 Total for State (excluding Cook County) 3,875,550.97 141,905.74 3.66 Cook 2,885,009.67 239,434.95 8.29 Total for State $6,760,560.64 $381,340.69 5.64 REVENUE AND FINANCE. f 129 AMOUNT AND PERCENTAGE OF ABATEMENTS FROM STATE TAX. For the Year ending September 30, 1911. rn^^niv Amount Total Per- ,!',^.- Charged Abatements centage ifA^Tr ^ ,?'^02 $ 4,606.81 11.79 ^*- ,V^'^ 125,256.04 1083593 865 Madison ini: i9c i^ iro^^'^^ 2^ ^ i7r.,„Ki:„ 105,125.13 7,822.40 7.43 ™1^'"' 22,791.77 149716 656 ^T" 26,587.47 1733:62 tfz H-'din 111.050.11 6,521.81 5.87 "nn^ J'532.95 206.96 5.85 Pulaski ::::::::::: S?7 ^^??S^ ^-^^ Alevandpr 88,446.57 456.96 5.41 u Y 1 u 21,226.11 112968 531 ^'"^^°'P^ 25786.55 l,323.So III Total— 11 counties $ 530 414 4^ ""^sT^Too 7^ Total for State (excluding Cook* ^"^"'^^^^^ ^^,503.39 7.26 Cook ""^^^ 4,672,879.53 177,629.22 3.80 ^""""^ • 3,634,698.51 1,180,045.69 a32.46 -1^^°" ^*^^^ • $8,307,578.04 $1,357,674.91 1^ n. "Final settlement not made." For the Year ending September 30, 1912 Countv Amount Total Per- t;. P, . Charged Abatements centage JoDaviess ^ 137,014.10 $ 12,151.91 8.86 PuhsS^-.V; ^If'il 2,920.09 6.96 Marion... : ,^'^64.62 592.40 6.38 Madison 27,832.79 1,681.78 6.04 Sahne 1^^,569.87 6.787.96 5.87 21,256.68 1,077.71 5.07 Cook """^^ 5,112,136.44 183,123.10 3.58 ■ 4.025,193.74 340,186.15 8.45 Total for State $9,137,330.18 $523,309.25 572 Delays in Settlements. and 1912''th^P°,? °^ tl^^Auditor of Public Accounts for 1908, 1910, ments ff; r. f}^}.^'^^'^^ «/ State taxes charged and paid shows abate- J ears' i^^'^r ^T'^ °^^''°"' $1-000,000 for the second of the two o'hat countv "■^P°['-"«arIy one-third of the total State tax charged "o been Zl fi^/tw""*' ? "''Vf " f ^'"^ *^* fi"^' settlement had ihe W? *^^* county; and the later reports show receipts bv uiu nave been included in the preceding report, 'ember ao'^thrl^'''" '^f°'^^^^'<' prepared for the period ending on Sep- 'ounty collectors S' 1^%' ^'^ '^^^ ^"""^ "^^ '^' ■•«^«""- '^^ when '!•<= time when .„r^.''^ ^."^ settlements for State taxes; and after ^i'ed?^ appear hTfo?"tr°'' ^"l'"^ '° ""^^^ '"""^ settlement should be to appear before the county court to show cause why he should 130 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 131 vi-. in i:i I not be removed for failure to make settlement. Records in the Audi- tor's office show that the final settlements for Cook County in recent years have not been made before December; and in a few other coun- ties final settlements are delayed, and in some cases small payments of taxes due July 1 are made more than six months after that date. Under the present law, neither the Auditor nor any other State officer has specific authority to take action other than by suit to com- pel the county collectors to make settlements at the prescribed dates. Conclusions. From the foregoing analysis it appears that the cost of tax col- lection in Illinois is unduly high ; and that the present system of compensating collectors is not well adjusted to the varying conditions m different parts of the State. The considerable proportion of taxes uncollected in Cook and some other counties is also evidence of inefficiency either in the assessment or the collection administration ; and shows the need for more effective State supervision of the local officials, if not also of a change in the local organization. Complaints have been made o'f town collectors in counties under township organization, as an unnecessary duplication of officials caus- ing additional expense. Inquiries in connection with a recent study of town and county government in Illinois showed that most county officials were in favor of abolishing the office of town collector, and concentrating the collection of taxes in the hands of the county col- lector. This opinion was strongest in counties under township organ- ization.^^ The town collector may serve the convenience of some tax payers in certain localities ; but making the county collector responsible for the collection of all taxes would not prevent the appointment of deputies or agents in rural districts; and these could often be better adjusted to the convenience of tax payers than under the present arrangement of one collector for each township. In fact rural town collectors sometimes make their headquarters in the county seat ; while at least in the town which includes the county seat there seems to be no occasion whatever for having both a town and county collector, and for the payment of commissions to two officials on a large part of the taxes collected. If the abolition of town collectors throughout the State does not seem advisable, there should be no reasonable objection to an optional law authorizing any county, by popular vote, to designate the county collector ex officio town collector for all the towns in the county, or allowing any town to designate the county collector as its town collector. Need for State Supervision. There is need for further information as to the collection of taxes, by inquiries and examination of records in the offices of the county clerks and county collectors. These should be directed to the follow- ing points : 22John A. Fairlie: pp. 12, 153, 176-178. A Report on Town and County Government in Illinois (1913), / 1 The extent to which the procedure laid down in the revenue law IS followed, and the extent to which the provisions of the law are not carried out. »«» aic 2. The amount and proportion of taxes collected by town dis- trict and county collectors. 3. The cost of collection, noting the differences, where there are to the coKrs •^°'"""^^'°"^ ^"°^^d and the compensation paid 4. The amount of taxes uncollected, noting separately abatements for errors, and on account of injunctions, and the taxes on forfeited real estate and on delinquent personal property f. b ^^^u '" '^^"'^ *° '^'^' °^ '■^^' «^'^t« for taxes and the redemp- tion of such property. 'cucmp Some of this information can probably be obtained by inquiries and reports from county officers. But there should also be'a rSr examination of the records of the county officers, and invesl^Sn T.%*lf''r^ '°"""*'=^- For this purpose the power of the Aud" tor of Public Accounts should be increased. 4. Summary of Property Tax Administration. f.v J''nr'"''""P^' T^^ '" ^^^ administration of the general property Ihe dutS-oTeaTptllL" officer' '" ''' ^"""^'"^ '"'' ^^ '-- °' Assessment of Property. Auditor of Public Accounts- Prepares and transmits forms, blanks and instructions. Receives abstracts of local assessments and schedules of rail- roaa companies and corporations cSks.^'^'''" ""^ ^^^^^ ^""^'"^ ""^ Equalization to the county County Clerks — Prepare assessment books before April 1 Prepare abstract of local assesments. t^ounty Treasurers — Instruct town assessors in counties under township organiza- '^'izltbr"''*^ assessor in counties not under township organ- Assessors — Cou„fytoa°K'R:S- °' P"^"'^' ^P"' ' '° J"- '■ Statetr^ ^^^^^^ -^-*'-- ^TaDhaTito^t ^/^^^'"^nts.and assesses railroad property and capital stock of corporations. t- t- / ■fi'y and Extension of Taxes. |:"coLd'^TuSay7^ 'S^S^ '^^'^^ *° -""^^ ^->^ ^^^-e County boards determine county tax levy at September meet- f! 132 EFFICIENCY AND ECONOMY COMMITTEE. Governor, Auditor and Treasurer determine State tax rate. Auditor of Public Accounts certifies State tax rate to county clerks. County clerks determine local tax rates under Juul law, extend taxes on collectors' books and forward statements to Auditor. Collection of Taxes. County Clerks — Deliver books to collectors, January 2. Certify statements of collections to Auditor and other author- ities. Attend and assist at sales of real estate for taxes. Town and District Collectors — Collect taxes, may distrain personal property for taxes. Render accounts and make payments every thirty days. Make final settlement on or before March 30. County Collectors — File statement of taxes received on or before April 10. Collect delinquent taxes. Report and pay taxes to local authorities every ten days. Give notice of judgment proceedings. Conduct sales of real estate for taxes. Makes statement of delinquent taxes on or before third Mon- day in June. Makes final settlement for State taxes on or before July 1. County Court — Enters judgment for delinquent taxes and orders sales of real estate for taxes. Auditor of Public Accounts. Receives statements of collections and delinquent taxes. Makes final settlements with county collectors. State Treasurer receives funds for the State treasury. The procedure involves the action of ten distinct authorities, in addition to six or more tax levying bodies, and requires repeated trans- fers of books and statements from one officer to another; while the duties of some officials duplicate those of others, so as to make possible conflicting decisions. There are four different State authorities hav- ing to do with the administration of tax matters ; but the supervision of local tax officials and the total powers of all the State authorities are inadequate. Suggested Reorganisation. It may be safely stated that the present assessed valuations of property are inadequate and unequal, that the tax levies are compli- • cated and poorly adjusted, and that the collection of taxes appears to be costly and incomplete. Some reorganization and simplification of the administrative machinery is clearly needed. Town assessors and collectors might well be abolished, and their duties performed more effectively by county officers with appointed deputies. At least an optional law should per- REVENUE AND FINANCE. 133 mit counties which wish to make this change to do so. The number of county officers involved should also be reduced and their functions concentrated State administration of tax matters should also be cen- tralized in the hands of a small commission, with power to supervise local assessing and collecting officers, to make State assessments and to determine the State tax rate. C. ADMINISTRATION OF OTHER STATE REVENUES. Illinois Central Railroad Payments. Under an Act of 1851 providing for the construction of the Illinois Central railroad, this company pays to the State seven per cent of its gross income semi-annually in lieu of taxes and in consideration of its grants, privileges and franchises. These payments are made only on IndT^T^H .c .r' ^^^f^'l"^ "^^^^ ^^^ently built lines are assessed t^LZl f ^^r '?'^T^^ property. The revenue from this source is an important item in the receipts of the State treasuiy, ranging dur- ing the last ten years from $1,000,000 to $1,240,000 a year The Act of 1851 provides that: ofr.Jf.l;A^^ purpose of ascertaining the proceeds, receipts or income thereol .h.irh'/?''*^^r""V^^?." ^^ ^^P^ ^^ ^^^^ comPany' 1 copy tn2nftw^ furnished to the Governor of the State of Illinois the I^ic. ^^'^^ ^/^?:""* '^^" ^^ v^"fi^^ by the affidavits ->£ the treasurer iJjl-^^'^.u''^ *b« company. And for the purpose of verifW and fn re'Go^^^^'r'olThe^?^^^"^ ?r"."*' full power is hereby vested o^ '\ ^^vemor of the State of Illmois, or any other person hv law ex^mrn:'''ui°d/r"ortir/''^°'^^ ^""^ P^'P^^i °f s^id co^oratio". r„d to and other persons! "'' ^^""'' ""^ '"'^^°^''' °* '^'^ '°'"^'"'y- n^n,,^** *° ^^^' '' .^PPea" that the statements submitted by the com- pany were accepted by the Governor, and in many cases aDoroved "nder"thrH''":J°"- .^A ^''^ '•^^"'* °^^" investigXn belu^TnlWS brou 'ht bv Z/^^t °^ ^^^'T*" °^"^^"' ^"=* ^^' ^" accounting was Sunlm»> ^^u^'5 ^P'"'* **>« company. In deciding this suit the Supreme Court held that the Governor had power to adjust settle hvthTr^^^ ^^ ^^^ ^^^" approved or accepted without objection ments Sere'Z T' '*^'f ^. °'" !f "'^"^ ^"°""*^ ^ ^"^ *^* ^^en state requ red Th? . ^"J^^^P^^'^, ^^^ approved, an accounting could be should be iS„H?H"^ 1'° "■"'"'^ °" ? """J*'^"' °^ ''"^^tions Is to what sewn r. ""<^'"'^ed m the gross receipts of the company subject to the Ss;„Te?ne^'"^"i \° *^ ^Jate and as to thf ap^rtionme^t o ^rnings and expenses between the charter and non-charter lines." Corporation and Other Fees, Collected by the Secretary of State. Prod?c?Tonsii"r;wr'' ^"^ °'^% fees imposed on corporations now Before 18% si "^-rT"^' T"^^*"*^ ^^ -^^^ Secretary of State, were retained .tfipK^u^^c^"'' -"corporation fees as were collected Auditor of'^t.tl'^^^''^ Secretary of State, and after 1848 by the __^ of State. The Constitution of 1870, however, provided that Sr.e^^1'«^|,°J IJ"noij V im , c^^^^^^^ R R. Co (Opinion filed October 28. 1910) • "'Governor Varies S.De2«n,Janualy 4. ilu; '""'"'"■*■ ^"^ '^■- Btennlal Messaii il 134 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 135 I all such fees should go to the State Treasury. Before 1893, the fees were small and the revenue unimportant. But by laws of 1893 and 1895, and later amendments a sliding scale of fees is imposed varying with the amount of capital stock ; and the revenue has increased rapid- ly, to $876,000 for the biennial period 1910-12. Various other fees are also paid to the Secretary of State; for notarial, justices and miscellaneous commissions; for anti-trust affidavits; and, since 1907, for licenses for motor vehicles and chauffeurs. The largest revenue is from automobile fees. The following statement shows the fees collected by the Secre- tary of State from October 1, 1910 to September 30, 1912.-^ Domestic corporations $ 732 003 15 Foreign corporations for licenses 99 413^97 Annual reports of corporations * 3l[562!50 Reinstatement of corporations 13'754'20 Total corporation fees $ 876,733.82 Anti-trust affidavits 35 129.40 Notarial commissions 27'l85!35 Miscellaneous commissions i 670.50 Miscellaneous fees • *" . '. 15'734!28 Automobile fees [[[[ 462 37l"52 r> r ^ . . , $1,418,824.87 Kefunded for charters not issued or for over-payments 17,857.19 Net fees collected $1,400,967.68 For the two years ending September 30, 1914, the receipts of the State treasury from the Secretary of State were as follows: General Road Revenue Fund Total J912-13 $ 512.586.42 $ 482.865.59 $ 995.452.01 1913-14 613.246.42 699,534.52 1.312,780.94 Total $1,125,832.84 $1,182,400.11 $2,308,232.95 The expense of administration for automobile licenses (including metal tags and expressage) is a large proportion of the amount col- lected, amounting in 1912 13 to $106,679.66, and in 1913-14 to $107,- 249.71, or more than 20 per cent of the receipts. These expenses are paid out of the general revenue ; while the total revenue from auto- mobile licenses is paid into the road fund. Insurance Fees and Taxes. Under the laws regulating insurance companies, a complicated variety of license fees are imposed on different classes of companies, for filing their charters and annual reports, and in some cases yearly fees for renewals and agents certificates. In addition, the so-called reciprocal clause in the Act of 1869 provides that when the home state of a foreign insurance company charges foreign companies higher rates for licenses or taxes than the State of Illinois, the same rates shall be charged to such company by this State. The revenue from license fees is not a large amount; and for twelve years the reciprocal clause was not enforced. But since 1882, reciprocal taxes «*Report of the Secretary of State 1910-12, p. 8.. have been imposed and have yielded considerable revenue, amounting with license fees to $1,178,695 for the two years from October 1, 1910 to September 30, 1912, and to $1,354,520 for the two years ending September 30, 1914. "^ ^ Up to 1893, insurance fees and taxes were collected by the Auditor of Public Accounts. By Act of that year a separate insurance depart- ment was created, under the direction of the. Insurance Superintendent. The duties of this officer include the collection of taxes and fees from insurance companies, and the payment of the sums collected to the State Treasurer. Inheritance Tax. By Act of 1895, gifts, legacies and inheritances of property taking effect after the death of the owner, were made subject to taxation The tax applies to all property from decedents, residents of the State and to property from non-resident decedents which is within the State' Under the Act of 1895, three classes of heirs or legatees were recog- nized, each subject to a different rate of taxation,— direct or lineal heirs, collateral relatives and others. For each class, transfers of estates of less than fixed amounts were exempted, and for the third class, the tax rate was progressive, increasing with the amount of the estate. Under a revised Act of 1909, the rates of the inheritance tax have been increased in the case of larger estates ; and the rates have been made progressive for transfers to direct and collateral relatives as well as to other heirs or legatees. The rates on transfers to direct heirs are one per cent for transfers of more than $20,000, and two per cent for transfers of more than $100,000. To collateral relatives, the rates are two per cent on transfers of more than $2,000, and four per cent on transfers of more than $20,000. To other heirs and legatees the rates range from three per cent on estates of more than $500 to teii per cent on estates of more than $100,000. By amendments passed in 1913, some of the administrative pro- visions of the law have been altered and strengthened Imnn^A ^^^ ^^^^inistration of the inheritance tax, certain duties are mposed on administrators, executors and trustees of estates ; provis- hrou'^h"'^n' ""' ^^''^^ ^P?.?^'^^ ^"^ ^^" ^^^ collection of the tax uoerfL "^^•J'^'^u'' ^h^^^.the attorney-general has authority to supervise and aid in the execution of the law. s,ih,V.r^ administrator, executor or trustee of any estate or property lectft? ! ^^"^ u 'f'^'^^'*^^ ^^ ^^^"^^ ^he tax therefrom, or to col- reasiTr^r o"^ /vf''"' ^^^ ^^^^^^^ ^' ^^''' ^"^ ^^ P^^ ^^e amount to the treasurer of the proper county. tain wL^Jf""'^^'^ ^" ^^P' 'V'' *^^ ^"^y ^f the county judge to ascer- Z Tf so tn^"^ transfer of property is subject to an inheritance tax, andthVtV. T-'u^"".^ ^"^ ^^^ ^^^"^ ^^ ^^t^tes and other interests evidenrP n^ to which they are liable. For this purpose, he may hear nous h"' ' ^here the facts are complicated and the evidence volumi- shall k1 "^^^ appoint some competent person as appraiser.^^ Notice !^^^ll_De given to persons interested. 2fiT appraisVsTalfcaL*^* *^*'^ ""^^^^ ^^^^^ ^"^^^^^^ *^« ^«"°*y J"^^^ ^^y appoint 1^' 136 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 137 1 1; J I I 1 i ■1 I » !:< 11 ill fff Both the appraiser and the county judge are authorized to sub- poena witnesses and to take the evidence of such witnesses under oath. Persons subpoened who refuse or neglect to appear or testify may be compelled to do so by the circuit court or judge thereof. Appraisers are to make a report of the evidence and of such value. The order of the county judge assessing and fixing an inheritance tax, with the report of the appraiser, if any, shall be filed with the county clerk; and it is the duty of the county clerk within five days to transmit a certified copy of such order to the Attorney-General and to the county treasurer and to give notice to all parties interested. Any person or persons dissatisfied with the appraisement or assessment may appeal therefrom to the county court within sixty days. Appraisers are paid by the county treasurer, from the inheritance tax collected, such compensation as the county judge deems just, not to exceed ten dollars a day. County clerks are allowed fees in inher- itance tax matters, as provided in the Act. When the tax is not paid, the county court is required to issue a summons to the persons interested to appear and show cause why the tax should not be paid. It is also the duty of the Attorney-General to prosecute the collection of any such tax due and unpaid by a bill in chancery or an action in assumpsit. The county judge and county clerk of each county are required, every three months, to make a statement to the county treasurer of property on which such tax is due and unpaid. It is the duty of the county treasurer to make and transmit to the Attorney-General on the first day of January, April, March and October of each year a state- ment of the inheritance tax due and unpaid. The county treasurer is required to collect and pay to the State Treasurer all such taxes ; and to make a report under oath to the Audi- tor of Public Accounts on the first of each year, in such form and stat- ing such particulars as the Auditor prescribes. On taxes collected and not paid to the State treasury on the first day of October and April of each year, he shall pay interest at the rate of ten per cent per annum. The law provides for a commission of two per cent of such taxes paid and accounted for, for his services. The state treasurer is required to furnish each county judge a book to enter the returns made by the appraisers, the cash value of annuities, life estates and terms of years and other property fixed by him, and the tax assessed thereon and the amount of receipts for pay- ments filed with him. By the amendments of 1913, it is made the duty of the Attorney- General to exercise general supervision over the assessment and collec- tion of the inheritance tax, and to institute such suits and proceedings as may be necessary and proper. He is more specifically to be given notices and reports of inheritance tax proceedings; he may initiate such proceedings before the county judge; and he may appeal from the original assessment to the county court. In counties of the third class (Cook County) the Attorney-General is required to designate an assis- tant or assistants Attorney-General, whose special duty it shall be to attend to all inheritance tax matters in such counties. An appropriation was also made for investigating inheritance tax matters m other counties; and a number of attorneys have been appomted for this purpose. • ^}\ ^^"^inistrative arrangements for the assessment and collec- tion of the inheritance tax are more centralized and more effective than in the case of the general property tax. Appraisers are appointed, with a distinct proviso that competent persons shall be selected; while there is definite authority to subpoena witnesses and compel testimony as to the value of property. Further the action of the appraisers and county officials are subject to active supervision by the Attorney-General, who has also authority to insti- tute proceedings on his own motion. It may also be noted, however, that the administration of the inheritance tax calls mto service certain officials who have little or nothing to do with other branches of revenue administration The county judge IS the ocal assessor for this tax; the State Treasurer pre- pares books for the local officials; and the Attorney-General has impor- ant powers. These duties are somewhat similar to those of the countv treasurer as supervisor of assessments, and the Auditor of Public Accounts in property tax administration. The result adds to the com- plexity of revenue administration as a whole. Cost of Administration. The cost of administration of the inheritance tax has been a lar^e fhelnc'r ""^ '^' ?'^^ ^T""' ""' '^^ ^°"^^^^^> ^^d in some count'ls the local expenses have taken more than one-half of the tax collected As shown m the following table, the local expenses for thfyeaSlS mou" Tl0^""if '^"" (^^^ P^^ ^^"^ ^^^^^ t^- -^llected, and for 1910-12 and 1912-14 were more than seven (7) per cent In Cook County, where much the larger part of the tax is collected the cost of 53/"^"T^ V " " ^^"^i^^^-bly less than in the rest of he StaL -9^^ ?2/3"1l3^' ^hSTi/ ^" '^''' .^^^""^"^ P^^^^^^ ^^' Cook Coun y, and cJuft /^ ^""^ ^^<^ P'' '^"^ ^^' ^^'^ «^^^^^ ^o^^ties. In a number of StV L'r9K^^^^^ ''^^ of collection is much higher than these ZlJu!' iu V^^-^^' there were 29 counties and in 1910-12, 26 coun- ted Z i 'T"'"' ^'^'^ "^^^^ ^^^" 20 per cent of tax col lected, the average for these counties being about 30 per cent In 1Q0« o;:Lt^hr^o^^^' ^" ''''-'' ^^ ^^^^^ --^^-^ an'd"nT912-;3 in'S ^ounties, the local expenses were more than 50 per cent- whil^ in expenses in such counties form an appreciable amount siderihl. /'^'°". '° *\'°=al expenses the State now pays out con- Klerable sums for the better enforcement of the inheritance tax kw offi e u^derThrXnn'"" r ^^^'\^ "f ■'"^^ '°' '^e inheritance lax $n3 000wLt!,^ f »!?'^^""^''' ^"^ '" ^^13' ^" appropriation of 000 toThr 4^! T "' ^^'^ P."'P°'^' ^"*^ ^'^° ^" appropriation of $60,- tax. ThL ,1^ Treasurer for expenses in collecting the inheritance Ihese appropriations are more than 60 per cent of the local i ■ 1 \ 1 W^' T1 ,.!'^ 1 Ir ii ^''' '1 i' r 1^ A I 138 EFFICIENCY AND ECONOMY COMMITTEE. expenses for collecting the inheritance tax for the two years 1912-14; and on the basis of the tax collected for that period would increase the total cost of collection from less than 8 to more than 12 per cent of the tax. The present methods for the appraisement and collection of the inheritance tax are in the form of legal proceedings, which involve a good deal of expense, which could be avoided in a large proportion of cases, if the forms of an administrative action were followed, as in other taxes. The United States Inheritance Tax of 1898 was assessed and collected through the internal revenue collectors, at little additional expense. The expense of administering the State inheritance tax could be much reduced, if its enforcement was concentrated in the hands of a State officer, with provisions for judicial proceedings only in con- tested cases. United States Inheritance Tax. Under the Act of Congress providing for the inheritance tax of 1898, it was made the duty of every executor, administrator or trustee of an estate to pay the tax and to render to the collector of internal revenue a sworn statement of the amount of each legacy or share of the estate and the amount of the duty thereon. In cases of failure, neglect or false statements, the collector was required to make out such lists and valuations as in other cases of delinquent taxes and assess the duty ; and he was also required to commence appropriate proceedings before any court of the United States to collect the tax by judgment and sale of the property. Every person in possession of any record or papers concerning such property was required to exhibit them at the request of the collector, under penalty of $500.00. AMOUNT OF INHERITANCE TAX COLLECTED AND LOCAL EXPENSES OF ADMINISTRATION IN ILLINOIS. q^^^ Other 1908-10 Total County Counties Tax on direct inheritances $ 813,41574 $558,607.50 $254,808.24 Tax on collateral inheritances 427,624.99 285,268.39 142,356.60 Total amount of tax collected $1,241,040.73 $843,875.89 $397,164.84 County treasurer's commission $ 24,806.63 16,877.50 7^929.13 Appraiser's fees and expenses 119,741.21 61,382.78 58,358.43 Total local expenses $ 144,547.84 $ 78,260.28 $ 66,287.56 Net amount to State Treasury $1,096,492.89 $765,615.61 $330,877.28 Per cent expenses of administration 11.65 9.27 16.69 1910-12 Tax on direct inheritances $2,933,367.30 $2,248,690.71 $684,676.59 Tax on collateral inheritances 1,034,864.81 851,832.08 183,032.73 Total amount of tax collected $3,968,232.11 $3,100,522.79 $867,709.32 County treasurer's commissions $ 79,546.71 $ 62,010.46 $ 17,536.25 Appraiser's fees and expenses 203,317.34 117,377.84 85,939.50 Total local expenses $ 282,864.05 $ 179,388.30 $103,475.75 Net amount to State Treasury $3,685,368.06 $2,921,134.49 $764,233.57 Per cent expenses of administration... 7.13 5.78 11.79 REVENUE AND FINANCE. 1912-14 Tax on direct inheritances. . . 'and ....■;:::::::::::: ti LaSalle 72 yn DuPage .•;:::: |||o t7"ss»on ■■■■:: 33:22 S^f 32.08 Logan ^1 cY ^"^^-" ':::::.::::: 3027 Total amount of tax col- . lected $ 223.76 159.44 102.27 2,045.55 3,780.14 2,520.31 128.24 722.70 307.42 602.20 16,359.98 1,337.72 11,920.78 4,223.86 21,524.36 6,505.53 Total ex- pense of collection $ 223.76 140.48 75.84 1,183.78 2,074.27 1,212.03 61.56 227.57 119.15 218.20 5,514.48 448.25 3,959.70 1,355.02 6,781.80 1,969.21 Net amount trans- mitted to State Treasurer $ • 18.96 26.43 861.77 1,705.87 1,308.28 66.68 395.13 188.27 384.00 10.845.50 889.47 7,961.08 2,858.84 14.742.56 4,536.32 Total. counties over 30%. 35.41 $ 72,464.26 $ 25,665.10 $ 46,799.16 ^«^san 2999 .^tarshall .... oq^ McHenry ^9.75 Champaign .V.'.*.'.*.'.".;;:: ^ 28^4 ^helby '2755 Henry ^i'^i Sfga';non".'.-.-: f^"^ Woodford ^1^ Jfenard ... rjJJ Fulton 24.34 Wayne l^-^ F'^rian .';:;:::;.: lolo Total, counties 20 to 30%. 2^66 $ 4,369.56 720.23 3,758.67 4,530.37 2,527.72 1,502.29 10,863.39 66.50 852.12 3,006.03 140.26 6,035.98 221.97 $ 1,310.29 214.26 1,080.70 1,288.28 706.54 391.05 2,679.36 16.33 207.42 701.03 30.80 1,237.39 44.43 $ 30,592.27 505.97 2,677.97 3,242.09 1,821.18 1,111.24 8,184.03 50.17 644.70 2,305.00 109.46 4,798.59' 177.54 $ 38,595.09 $ 9,907.88 $ 28,687.21 140 f- liP! EFFICIENCY AND ECONOMY COMMITTEE. LOCAL EXPENSES OF COLLECTING INHERITANCE TAX. 1908-1910. REVENUE AND FtNANCE. 141 Per cent of cost of col- Name of County lection Kane 19.84 Lee 19.81 Adams .• 19.60 Clark 19.32 Moultrie 18.76 Putnam 18.60 Stephenson 18.25 Alexander 17.26 Macon 16.50 DeKalb 16.39 DeWitt 15.28 Iroquois 14.94 Knox 14.42 St. Clair 14.29 Ogle 13.75 Pike 13.63 Warren 13.39 Clinton 13.29 Vermilion 13.19 Peoria 12.67 Henderson 12.11 Tazewell 11.90 Carroll 11.14 Cass 10.91 Rock Island 10.88 Mercer 10.44 Total, counties 10 to 20% 14.48 Lawrence 9.36 Stark 8.95 Montgomery 8.73 McDonough 7.98 Boone 7.80 JeflFerson 7.76 JoDaviess 7.57 Piatt 7.49 Marion 7.24 Madison 7.01 Fayette 6.92 McLean 6.11 Total, counties 6 to 10%. 7.34 Greene 5.55 Whiteside 5.45 Lake 5.44 Macoupin 4.04 Jackson 3.66 Franklin 2.00 Schuyler 2.00 Union 2.00 Total Net amount of Total ex- amount trans- tax col- pense of mitted to State lected collection Treasurer $ 6,828.28 $ 1,354.77 $ 5,473.51 1,936.70 383.63 1,553.07 12,065.02 2,365.53 9,699.49 1,183.81 228.68 955.13 842.40 158.05 684.35 72.32 13.45 58.87 1,511.68 275.92 1,235.76 1,518.71 262.12 1.256.59 13,073.05 2,157.55 10,915.50 5,275.26 864.90 4,410.36 17,351.42 2,651.36 14,700.06 1,964.79 293.49 1,671.30 10,437.97 1.505.04 8,932.93 2,795.14 399.40 2,395.74 5,111.85 703 20 4,408.65 1,142.81 155.76 • 987.05 3,590.94 480.80 3,110.14 3,427.04 455.75 2,971.29 11,485.07 1,513.67 9,971.40 14,417.87 1,827.20 12.590.67 3,048.18 369 06 2,679.12 14,701.62 1,748.97 12.952.65 1,827.92 203.61 1,624.31 190.62 20.80 169.82 15.592.81 1,696.86 13,895.95 4.087.79 427.02 $ $ 3,660.77 $ 155,481.07 $ 22,516.59 $ 40733 132.964.48 $ 4,351.37 3,944.04 2,442.97 218.75 2,224.22 1,633.36 142.67 1,490 6'» 4,352.51 347.48 4,005.03 3,339.50 260.64 3.078.86 2.723.43 211.45 2,511.98 2,042.54 154.70 1,887.84 15,447.31 1,157.88 1,489.43 1,049.29 75.97 973.32 28,662.15 2,01078 26,651.37 1,064.00 73.61 990.39 10,669.82 651.67 10,018.15 $ 77.778.25 $ 5,712.93 $ $ 72,065.32 $ 21,288.12 $ 1,183.33 20,104.79 434.35 23.69 410.66 17,790.37 968.63 16,821.74 1,114.87 45.05 1,069.92 1,205.79 44.11 1,161.68 10.197.04 203.94 9,993.10 228.00 4.56 223.44 587.53 11.75 575.78 Total, counties under 6% 4.70 $ 52,846.17 $ 2,485.06 $ 50,361.11 LOCAL EXPENSES OF COLLECTING INH 1908-1910. Name of County Total Recapitulation. Per cent of amount of Per centages of cost cost of col- tax col- above lection lected y- •••••• 35.41 $ 72,464.26 ^u''''^ ^nZ"" 25.66 38.595.09 Above 10% 14.48 155,481.07 ^bove 6% 7.34 77,778.25 Below 6% 4.70 52.846.17 Cook County 9.27 843,875.89 11:65 $1,241,040.73 1910-1912. Total Per cent of amount of ., , ^ cost of col- taxcol- Wame of County lection lected ^^>J"t 93.59 $ 181.77 ^l^/l, 73.53 1,367.71 ^;".^" 50.80 388.52 }i^'^^ 49.50 2,030.05 ^•^y 44.16 1,153.83 &r:;::;;:::::;:::;:i:l$ iS te" 35.08 5,113.66 S'"^f ^^°" 34.41 1,009.83 . S°"«^^^ 32.68 3632.57 lZ7 ^1-57 668.00 ^^'^' 3J^ 2.875.40 Total, counties over 30% 39.19 $ 24.997.09 Champaign 2948 "$ 3^96279 ^"°.^,. 26.68 9.46890 Zelr ^l-^ 5.m-54 Fulto" l^-^^ 2,824.13 Ford 24.04 2,895.20 Main 23.50 2.661.35 Si 23.41 11.853.07 M^con 22.63 2.578.41 Sheibv 22.52 7.837.51 EdJar 22.46 3.265.93 Jackson*"""- 22.36 7.983.03 St Qair 20.59 9,404.48 ^ , ' 20M^ 9,885.28 Aotal. counties 20 to 30% 23.44 "$~~80:066:55 wt?en }o'«4 $^:58r34 Cass 9.68 2,275.44 Mercer ^^.67 3,175.37 Pike 9.15 7,925.53 McHenrv' JF^ 2.600.43 VermiHo^ ^^-^^ 763.12 DupTgr J7.91 8,219.01 Kankakee llll 2.515.59 Morgan ^726 7,733.27 Grun%" J7.J3 9,613.81 Lee 17.12 15,248.92 sa„.a.o„- •.•;.■;.•; ••:::;;:;},6|| 3I.S ERITANCE TAX. Net amount trans- mitted to State Treasurer $ 46,799.16 28,687.21 132.964.48 72,065.32 50,361.11 • 765,615.61 $144.547.84 $1.096.492.89 Total ex- pense of collection $ 25.665.10 9,907.88 22,516.59 5,712 93 2.485.06 78,260.28 Total ex- pense of colIectioA Net amount trans- mitted to State Treasurer $ 170.13 1,005.75 197.38 1,004.95 509.58 1,185.33 1,278.57 1,793.98 347.50 1,187.39 210.92 906.51 $ 11.64 361.96 191.14 1,025.10 644.25 1,823.22 2.288.63 3.319.68 662.33 2.445.18 457.08 1.968.89 $ 9,797.99 $ 15,199.10 $ $ 1,168.27 2.526.55 1,439.09 716.23 696.21 625.62 2,775.07 583.65 1,765.6? 733.54 1,785.67 28.70 1,936.94 1,991.74 $"l8;772:93" $ 61.293.62 2,794.52 6.942.35 3,872.45 2,107.90 2,198.99 2,035.73 9.078.00 1,994.76 6,071.86 2.532.39 6,197.36 106.23 7,467.54 7,893.54 $ 1,882.78 447.84 624.72 1,517.95 477.05 138.76 1,472.63 434.64 1.334.78 1.647.74 2,610.71 596.85 4,182.46 $ 7,605.76 1,827.60 2.550.65 6,407.58 2,123.38 624.36 6,746.38 2,080.95 6,398.59 7,966.07 12.638.21 2,944.95 20.901.80 142 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 143 LOCAL EXPENSES OF COLLECTING INHERITANCE TAX. 1910-1912. I 'I i \ P V Percent of cost of col- Name of County lection Perr>' 16.60 Will 15.55 Winnebago 15.28 Menard 14,68 Stark 14.43 Alexander 14.26 Montgomerj' 14.06 Madison 13.83 Peoria 13.27 Washington 12.13 McDonough 12.04 Jasper , 11.31 Macoupin 10.76 LaSalle 10.47 Henry 10.4O Bond 10.29 \\ hiteside 10.16 Woodford 10.16 Total, counties 10 to 20% 13.20 Iroquois 9.74 Kane 9.51 Livingston 9.44 Ogle 7.96 Hancock 7.92 Crawford 7,41 Rock Island 6.91 JoDaviess 6.56 Stephenson 6.56 Piatt 6.54 Moultrie 6.46 Lake 6.09 Total, counties 6 to 10% 6.09 Marion '. 5.94 Gallatin 5.93 DeKalb 5.82 Saline 5.47 McLean 4.51 Clinton I.99 Randolph I.99 Total, counties under 6% 5.37 Recapitulation. Per centage of cost above 30% 39.19 Above 20% 23.44 Above 10% 13.20 Above 6% 6.09 Below 6% 5.37 Cook County 5.78 Total Net amount of Total ex- amount trans- tax col- pense of mitted to State lected collection Treasurer 220.49 36.71 183.78 9,983.71 1,553.21 8.430.50 15,110.84 2,310.43 12,800.41 ^yO*i«^.0^ 341.11 1,981.23 3,722.33 537.19 3,185.14 3,070.18 438.08 2,632.10 953.41 134.07 819.34 20,449.74 2,828.57 17,621.17 42,530.18 5.217.23 37,312.95 1.162.95 141.16 1,021.79 1,678.09 202.11 1,475.98 161.00 18.22 142.78 821.63 S.«63 733.00 150,1<^>0.45 15.734.41 134,426.04 7,485.98 778.89 6,708.09 180.82 18.62 162.20 7,513.00 765.37 6,747.63 7,255.94 737.35 6,518.59 $ 372,969.27 $ 49.250.27 $ 323.719.00 $ 5,893.93 $ 574.37 $ 5.319.56 34,961.56 3,324.85 31,636.71 9,971.11 942.01 9,029.10 5,787.69 461.15 5,326.54 464.00 36.78 427.22 2.825.76 209.56 2,616.20 61,432.92 4,249.94 57,182.98 3,766.28 247.26 3,519.02 7.520.01 494.98 7,025.03 23,976.61 1,569.86 22,406.75 6,686.67 432.54 6,254.13 130,965.90 7,977.52 122,988.38 $ 294,252.44 $ 20,520.82 $ 273,731.62 $ 1,935.10 $ 115.06 $ 1,820.04 11,910.18 706.83 11,203.35 46,037.81 2,680.69 43,357.12 6,271.79 343.21 5,928.58 27,988.83 ' 1,262.35 26,726.48 336.54 6.73 329.81 943.72 18.87 924.85 $ 95,423.97 $ 5.133.74 $ 90,290.23 $ 24,997.09 80.066.55 372,969.27 294,252.44 95,423.97 3,100.522.79 $ 9,797.99 18,772.93 49.250 27 20,520.82 5.133.74 179,388.30 $ 15,199.10 61.293.62 323,719.00 273,731.62 90,290.23 2,921,134.49 7.13 $3,968,232.11 $282,864.05 $3,685,368.06 Miscellaneous Revenues. In addition to the general property tax, and the special taxes and fees on inheritances, corporations and insurance companies, there are a large number of minor sources of State revenue collected by various State officials and boards. There is a considerable list of examination, inspection and license fees imposed in connection with the licensing and regulation of certain professions, businesses and occupations. Some appropriations from the United States government are made for the partial support of certain State institutions. The State prisons and penitentiaries receive considerable sums for the products manufactured by prison labor; and the various institutions receive sundry income from sales and rentals and fees for special services. Interest on bal- ances of public funds are paid by a number of officials. Revenues from any one of these sources are not of large impor- tance; and in many cases are offset by the expenses of the offices and institutions. But in the aggregate they form a considerable factor in the financial transactions of the State. Formerly, and even as late as 1911, much of the revenues of this kind were not turned into the State treasury ; and in many cases were not reported to the State Treasurer or Auditor of Public Accounts; but were used by the various officials and institutions to meet expenses not covered by legislative appropri- ations, and accounted for— if at all— only in the separate reports of the various boards and offices. By legislation of 1911, most of these revenues are now reported to the Auditor and turned into the State treasury; and provision was made in 1913 authorizing the Auditor to audit such revenue accounts.'^® No attempt will be made in this survey of revenue administra- tion to analyze these miscellaneous revenues in detail. Their general scope and importance will be indicated in the following table showing tlie receipts of the State treasury of this kind from the different State otticials and boards for the biennial periods ending September 30 1912 and 1914. ' MISCELLANEOUS STATE 'REVENUES. Frnm P • , . 1910-12 1912-14 i^rom Governor, amount received from U. S. govt, for Frni. tTc ^°'^^^^'s and Sailor's Home $280,665.50 $237,710.90 FrZ ^; r ^^^^- ^^l ^"^^l^^^ °^ agriculture 100,000.00 100,000.00 i^rom btate offices, boards, etc., from fees: Auditor of Public Accounts 70.988.61 138,372.53 btate Treasurer ^qq^ ^g K. R. and Whse. Commission .'*.'.'.'.*.".*.*'.' * 4.642.66 2,'766!43 ^laie Urain Inspection • 284 439 07 348 531 34 Superintendent of Public Instruction , '305.00 '755 00 Board of Administration . 167 00 138 15 stT^R^n'^'f "i! ^t""' :."..*.'.::::: 16,25775 34,018:48 Sap n A ""l^u^^^^ 22,858.96 54,910.25 Sta e uTJa "", ^.h^^^^^^y • •••.••. 23,805.38 45,506.20 ftlll ^ A ^^ ^"''^ Examiners 26,475.44 9,804.01 W u A °r P^^""*^.^ Exammers 10,802.41 17,676.00 oiaie tsoard of Veterinary Examiners 1,268.49 3,865.00 vtTsity^^nirmi? ^^h.^^^^"" revenues are collected by the State penitentiaries, state uni- Btate t^eaau^v ol'i'^^''^''' ^I"^ canal commissioners which are not turned over to the ireasury, and do not appear in the reports of the Auditor of Public Iccounti! 144 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 145 Board of Examiners of Architects 17,899.35 19,876.00 Barbers* Examining Board 27,436.03 38,473.42 State Geological Survey '. . . . 178.89 24.09 State Game Commission 305.42 State Fish Commission , 1,151.50 State Entomologist 2,603.74 Stallion Registration Board 24,655.17 Miners Examining Boards. 1,996.01 16,487.62 State Food Commission 512.00 Live Stock Commission 6,933.75 Public Utilities Commission 151,898.63 State Park Commission 6,850.10 From interest on public funds 170,266.99 147,480.68 From miscellaneous collections, state charitable institu- tions 641,431.03 789,415.99 From collections under State game law 305,549.54 293,548.12 From collections under State fish law 14,448.97 19,291.01 From collections under pure food law 25,178.20 34,098.65 From Insurance Supt., fire marshal fund 120,597.19 124,266.50 From sales, etc., Kaskaskia commons fund 21,266.79 76,099.51 From Board of Prison Industry 225,000.00 From sundry items 63,881.70 174,285.94 Total $2,261,371.96 $3,141,864.40 D. GENERAL COMMENTS AND SUGGESTIONS. From the foregoing survey of revenue administration in Illinois, it appears evident that the existing arrangements present a confusing chaos of conflicting authorities, without systematic correlation or coordination. In the administration of the general property tax and the inheritance tax, local officials are relied on to a large extent, v^rith a highly complicated differentiation of functions and with similar duties imposed on different officials. The State administration for each of these sources of revenue is placed largely in the hands of different State officials, and is organized on entirely distinct lines; while the supervision of local officials and the State assessment for the general property tax is clearly inadequate and inefficient. Other State revenues are collected by a large number of State officials, acting under different statutes, and with no provisions for any general policy or uniformity of methods. The State officials who are charged with functions in the admin- istration of the more important State revenues include the Governor, Auditor of Public Accounts, State Treasurer, Secretary of State, Attorney-General, the State Board of Equalization and the Insurance Superintendent ; while a much larger list of other officials, boards and commissions collect various minor revenues. The office of the Auditor of Public Accounts acts to some extent as a clearing house of infor- mation in regard to the revenues collected by most of the other author! ties; but his authority to supervise the accounts and methods of other officials is far from adequate; while his reports in recent years have been little more than tables of detailed statistics, without any analysis, explanation or discussion of the significant facts shown in the data published. On the basis of the preceding analysis of the revenue laws and their administration certain changes may be proposed in the organiza- tion of revenue administration. It should be clear that the recom- mendations previously made by other official authorities for the aboli- tion of the State Board of Equalization and the creation of a small commission with larger powers of inquiry, investigation and super- vision over the administration of the general property tax will improve that important part of the revenue system of the State. Such a com- mission should have jurisdiction not only over the assessment of prop- erty, but also over tax levies and the collection of property taxes. Its authority should be extended to all sources of State revenue, including the inheritance tax and automobile fees. Still further, there should be at least considered the advisability of giving such a body authority over the whole field of State finances, including not only revenues, but also expenditures and the preparation of a budget of proposed appro- priations for presentation to the General Assembly. In the field of local revenue administration, the number of local officials should be reduced, and their duties better co-ordinated. This is of most importance in the local assessment and collection of the general property tax, where town assessors and collectors should be abolished. But there is also need for a county board of taxation, to take the place of the present county boards of review and to pass on the validity of the levy of taxes by local authorities. SUMMARY OF STATE REVENUES. 1910-12 1912-14 General Property Tax, general revenue $11,317,345.57 $15,507,335.44 General Property Tax, special funds 2,985,817.83 9,685,825.90 Illinois Central Railroad 2,409,924.37 2,696,008.89 Inheritance Tax 3,687,029.97 3,146,048.56 United States Government 380,665.50 337,710.90 Secretary of State, fees 1,376,588.22 2,308,234.95 Insurance Superintendent 1,178,695.41 1,354,520.87 State offices, boards etc., fees 518,026.05 930,667.10 Interest on public funds 170,266.99 147,480.68 State charitable institutions 641,431.03 789,415.99 Collections under S^ate game law 305,549.54 293,548.12 Collections under State fish law 14,448.97 19,291.01 Collections under pure food law 25,178.20 34,098.65 Board of Prison Industry 225,000.00 Fire Marshal fund 120,597.19 124,266.50 Kaskakia commons school lands 21,266.79 76,099.51 Sundry items 63,881.70 174,285.94 Total General and Special Funds $25,227,757.09 $37,849,839.01 Registered Bond Fund 1,729,430.70 1,859,631.03 Grand Total $26,957,187.79 $39,709,470.04 p.. , 1 • i M\ |! 1 1,1 ■ 1 r 146 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 147 II. FINANCE ADMINISTRATION IN OTHER STATES AND COUNTIES. A. STATE FINANCE ADMINISTRATION. None of the states have established a comprehensive department of finance, including the various officials dealing with revenues and expenditures, corresponding to the financ^ departments of European countries, or to the department of the treasury in the United States government. In each state there are a number of state and local officials, who until recently have in the main acted independently ; and while a number of states have now provided a more effective system for some parts of the finance administration, in none have all the finance officials been definitely organized into one main division of the government. The oldest state finance official is the State Treasurer, who is found in every state, to receive, care for and disburse public funds. For a time this was the only state officer, the assessment and collection of state taxes being entrusted to local officials. The office of State Comptroller or Auditor was early established in some states; and is now provided in nearly all. Later, mainly since 1860, state boards of equalization have been organized in most states. More recently (since 1890) state tax commissions and commissioners have been created in many states; and in a number of states, supervision over local accounts has been established through the state auditor or comptroller, the state tax commission or by another official known as the state examiner. Jn most of the states there is now a state treasurer, an auditor or comptroller and a state tax commission or commissioner, — the two former usually elected, and the latter appointed. Other officials or boards found in a number of states include state boards of equalization, State assessors and state examiners or accountants. In some states there are still other authorities dealing with financial matters, such as boards of auditors, courts of claims and sinking fund commissions. Thus each state has from three to six or more separate finance officials, largely independent of each other. The State Treasurer. Every state has a State Treasurer. In most cases this officer is elected by popular vote, even in states where some of the older state officers are appointed ; but in Maine, New Hampshire, New Jersey and Maryland, the Treasurer is chosen by the legislature. Thus in every state, the Treasurer is by law independent of the Governor; and in some states this is further marked by his election at a different time or for a shorter term than the Governor (as in Pennsylvania, New Jersey, Maryland, Indiana and Illinois). The Treasurer is by law the receiver and custodian of state revenues, and the disbursing officer for appropriations from state funds. He is placed under heavy bond to secure the state in case of loss. He is usually a member ex officio of various financial boards, such as boards of equalization, sinking funds and land funds ; and less frequently is a member of other ex officio boards. In some states other miscellaneous duties not connected with finances are placed on the Treasurer. Reports of receipts and expenditures are made by the State Treas- urer to the legislature. But these are usually brief summaries, while the more detailed statements are presented by the Auditor or Comp- troller. The Treasurer's office in most states is limited to formal and ministerial functions, controlled by the Auditor or Comptroller. In no state does he have any duties or influence on the appropriations or revenue laws, such as forms the important work of a Finance Minister in other countries. Under the earlier laws, the Treasurer was assumed to have physi- cal possession of the state funds, — and he was personally responsible for them; so that if he deposited any amounts in banks he did so at his own risk. With the increase in the scale of financial transactions and the accumulation of large balances at times, the states have either pro- vided vaults for the custody of state funds, or have authorized deposits in banks. In 1900, nine states kept their funds in state vaults, — Ohio, Indi- ana, Illinois, Alabama, Mississippi, Arkansas, Texas, Nevada and Cal- ifornia, Kansas and Oregon also kept part of the state funds in treas- ury vaults. Under this system balances of from $250,000 to $4,000,000 aggregating from $12,000,000 to $15,000,000 were withdrawn from cir- culation, earning no interest, and were a direct source of expense to the state for the maintenance and protection of the vaults. Since then, Illinois has authorized the deposit of State funds in banks. In 1900, thirty-seven states and territories deposited the greater part of their funds in banks, and two others deposited part of their funds. Under this system balances aggregating $40,000,000 or more were kept free of expense to the state and in most states were a source of income while the money was kept in circulation. Wide differences, however, exist as to the method of selecting banks and taking security for the state funds. In some states, the depositary banks are named by law; more often the banks are selected by a board of state officers ; and in some states the selection is made by the Treasurer alone. The latter method is used in Connecticut, Maine, New Hampshire, New Jersey, North Carolina, South Dakota, Montana, Idaho and Oregon; and is also used in Illinois. Most of these are small states ; and Illinois and New Jersey are the only states using this method which carry large balances. The number of bank depositaries for state funds varied, in 1900, from one in Delaware and Arizona to 150 in New York and 177 in Massachusetts, averaging from 20 to 30 in most states. In the larger number of states special security is required for state funds, — by personal bonds, bonds of surety companies, financial secur- 1 :1 I ' I I ;i| 148 EFFICIENCY AND ECONOMY COMMITTEE. ities as collateral, or a first lien on the assets of the bank. In 1900, thirteen states required no security other than that given to ordinary depositors. About two-thirds of the states using bank depositaries received interest on balances, usually at the rate of from two to three per cent. But thirteen states, with average balances aggregating $7,000,000 received no interest.^^ Auditor or Comptroller. All of the states have made provision for auditing the receipts and payments of the State treasury; and in all the states except three a separate state officer and department has been established for this pur- pose. In Wisconsin and Oregon the Secretary of State acts as Auditor; and in New Hampshire warrants on the treasury are drawn by the Governor, who annually appoints a committee of two or more members of the executive council, to audit the accounts of the state treasurer. In the other states the officer in charge of the auditing department is usually called the Auditor; but the exact title varies to some extent. In Pennsylvania and Michigan, he is the Auditor-General ; in Illinois, Kentucky, and Nebraska, he is the Auditor of Public Accounts; in Ohio and Indiana, he is the Auditor of State ; in a number of states', he IS Comptroller or Comptroller-General — New York, New Jersey, Con- necticut, Maryland, South Carolina, Georgia, Florida, Tennessee, Texas, Nevada and California. Usually where the title of Comp- troller is used the powers of the office are larger than where the title Auditor is employed. This official is elected by popular vote in all of the states except New Jersey and Tennessee, where he is chosen by the legislature. His term in most cases corresponds with that of the State Treasurer; and like that official this is sometimes for a shorter period than the Governor ; but in a few states the Auditor has a longer term than the Treasurer, as in Illinois, Minnesota and Ohio (four years) and Pennsylvania (three years). These factors serve to emphasize the mdependence of the office from the chief executive; but none of the states have placed the position on tl\e basis of judicial tenure, as are the auditing officials in Great Britain and most of the countries of continental Europe. The primary function of the auditing department is to act as a check on the State Treasurer; and in most states it is more important than the Treasurer's office in the administration of state finances. It keeps a record of all moneys paid into or out of the state treasury, examines and adjusts claims and issues warrants or orders on the state treasury, which are the only authority 'to justify disbursements. It operates as a check on all the other branches of the state government to keep^their expenditures within the limits of appropriations. The Auditor's report usually presents a detailed statement of receipts and disbursements. In addition to these duties, other functions have been added to the office in different states. The Auditor is usually a member of 671 (IQ&T^^ ^^ '^^ American Academy of Social and Political Science, VI. 397 (1885), REVENUE AND FINANCE. 149 various financial boards. In a number of states, he receives and com- piles estimates for appropriations. In some states, he has important duties in the assessment and collection of taxes, especially in regard to corporation and inheritance taxes. In New York, Ohio and some other states he has supervision over the accounts of county and munici- pal officials. In some states, the Auditor acts in other capacities not directly connected with the state finances. Thus in Minnesota, he is Land Com- missioner; in Illinois, he has charge of the supervision of State' banks; in Montana and Rhode Island, he acts as Insurance Commissioner ; and in Indiana as Banking and Insurance Commissioner. Public Accounting. The powers of the State Auditor or Comptroller enable him to exercise some control over the accounts of other state offices and insti- tutions, and also over the accounts of local officers relating to state funds. But until recently in most states, this has been limited to accounts dealing with the collection of state revenues and the disburse- ment of state appropriations ; and for these has been confined to cash accounts, and to keeping expenditures within the amounts appropriated. A number of states have now made provisions for introducing more satisfactory accounting methods, both for state officers and institutions and for local officials. In some cases this has been done by increasing the authority of the State Auditor or Comptroller; but in some cases another officer has been created for this purpose. In 1878 the State of Minnesota established the office of State Examiner to examine the accounts of State offices and institutions and county accounts. A year later State supervision of county accounts was begun in Massachusetts. In 1889 the constitutions of the new states of Wyoming and Montana provided for state examiners to examine the accounts of state and county officers. Since then many other states have passed laws for better accounting and auditing in state and local offices. By 1913, about two-thirds of the states had laws for uniform accounting. Eleven of these placed this work under the State Auditor or Comptroller; and in most of these, the scope of the law was limited to state offices and institutions. About one-half of the states have provided for state supervision of county accounts; and some twelve states have made some provision for state supervision of municipal accounts, usually by a state examiner or accountant.^* Ohio has the most comprehensive law, passed in 1902. This establishes a bureau of inspection and supervision of public accounts in the office of the Auditor of State, which has power to prepare and prescribe uniform systems of accounts for all public offices in the state. The law also provides for financial reports and for the inspection and examination of both state and local accounts. New York has authorized the State Comptroller to establish uni- lorm accounts for counties, cities and villages, — except New York City 'ind Buffalo. '"National Municipal Review, Vol. 2, pp. 522-525 (July, 1913). |i 150 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 151 ■|! I** ^ir P' ^^^^^^ ^^^^ ^ comprehensive law are California, Indiana Washington and Wyoming. In West Virginia and Wisconsin the state tax commissioners have power to prepare uniform accounting systems. ^ For purposes of comparison, a more definite statement is given below of the powers and duties of the State Comptroller or Auditor in some of the more important states. General Duties. New York State Comptroller. The State Finance Law provides that the Comptroller shall : 1. Superintend the fiscal concerns of the State; 2. Keep, audit and state all accounts in which the state is inter- ested, and keep accurate and proper books showing their condition at all times; 3. Examine and settle the accounts of all public officers and other persons indeebted to the state, and certify the account or balance there- on due; 4. Examine, audit and liquidate the claims of all persons against the state, if payment thereof out of the treasury is authorized by law; 5. Draw warrants on the treasury for the payment of the moneys directed by law to be paid out of the treasury; 6. Make a report to the legislature at its annual session ; containing a complete statement of the funds of the state, its resources and public expenditures, during the preceding fiscal year, a statement of each object of expenditure, the funds, if any, from which it is to be defrayed, and a statement of all claims against the state presented to him where no provision or an insufficient provision for the payment thereof has been made by law, with the facts relating thereto and his opinion thereon, and suggesting plans for the improvement and man- agement of the public resources, and containing such other information and recommendations relating to the fiscal affairs of the state as in his judgment should be communicated to the legislature; ^ 7. Represent and vote for the state at all meetings and occas- sions when the state is entitled to vote as stockholder in a corporation or joint stock association ; 8. Supervise the administration of all funds paid into any court of record, and prescribe rules and regulations for the care and dis- position thereof. Prison Accounts. ^ The Comptroller has supervision over the accounts of the state prisons and reformatories, which are open to his examination He designates the banks for the deposit of moneys received from the pro- ceeds of prison labor; and such moneys are subject to check and draft only when countersigned by the Comptroller. He has also some super- vision over the care of convicts' deposits and earnings. He issues licenses for the sale of convict made goods. Estimates for Appropriations. Under an Act of 1910, statements of desired appropriations by institutions and boards are submitted to the Comptroller, and tabulated by him in printed form, with comparative data and estimates of income and such comments as he deems necessary. Local Accounts. Every county, other than those in New York City, every city of the second and third classes, and every incorporated village is required annually to make a report of its finanacial condition to the State Comp- troller. The reports are to be in the form prescribed by the Comp- troller, and contain a statement of receipts, revenue accounts due, dis- bursements, indebtedness, costs of ownership and operation and income of public service industries, and further information as may be required by the Comptroller. The Comptroller is also required to have the accounts of the fiscal officers of such municipal corporations inspected and examined. The Comptroller may formulate and pre- scribe a system of keeping accounts, uniform for each class of munici- pal corporation. Taxation. The Comptroller charges each county treasurer with the amount of the state tax levied on his county. If any part of a state tax is unpaid on June 1, the Comptroller shall transmit by mail to the county treasurer a copy of the accounts and a requisition that he must pay the balance within thirty days; and if the tax is not paid in that time, the Comptroller shall unless he is satisfied by due proof that the treasurer has not received such balance, and has used due diligence in collecting the same, forthwith deliver a copy of the account to the Attorney-General, who shall take the necessary proceedings to collect the same. The Comptroller may also direct the board of supervisors to institute proceedings against county treasurers. The Comptroller has supervision over the sale of lands for unpaid taxes. Corporations liable to pay a tax under the corporation tax law are required to make reports to the Comptroller, and if a report is not made or is unsatisfactory, the Comptroller is authorized to make an estimate of dividends and the value of the capital stock, and has power to examine the books and records of any such company, and take testi- mony, either personally or by a commissioner appointed for that pur- pose. The Comptroller shall order and state an amount for the tax due the state and send notice. On application, the Comptroller may revise and readjust such account, subject to review upon certiorari by the Supreme Court. After thirty days from notice of account, the Comptroller may issue a warrant directing the sheriff to levy and sell property of the company, etc. The State Comptroller has general supervisory power over all county treasurers and the chamberlain of New York City in respect to Quties imposed on them by the mortgage tax law, and may make rules and regulations to secure a due accounting for taxes and moneys col- lected from such tax. 152 EFFICIENCY AND ECONOMY COMMITTEE. Ml ■ i:. I: Pennsylvania Auditor-General. General Powers and Duties. r.f f J^^ Auditor-General is required annually to examine the situation of the public treasury and the deposits in the several banks, and the accounts of the state treasurer with the several banks in which public moneys are deposited. He is also authorized to take measures to re- cover moneys due to the commonwealth. AH receipts for payments into the state treasury must be signed by the state treasurer and countersigned by the Auditor-General All accounts between the commonwealth and any person or per- sons shall be examined and adjusted by the Auditor-General, who has power to compel all persons in possession of public moneys to render to him their accounts, and to compel delivery of books and papers Fubhc accounts when examined and adjusted by the Auditor-General are submitted to the state treasurer for his revision and approbation Settlements may be revised by the Auditor-General, state treas- urer and attorney-general. In settling accounts (for hospitals and for expenses of the legis- lature and other departm.ents of the government) he shall have power to inquire m to the correctness and fairness of the prices charged; and It shall be his duty to disallow any excess over fair cash prices '' He has the same control over accounts for public printing and binding as over the accounts of any other officer; and bills for station- ery and supplies must be approved by him. He receives title papers and insurance policies for the state insti- tutions. Taxation. The treasurer and Auditor-General are required to prepare and transmit to the county commissioners instructions in regard to the assessment and collection of taxes. Corporations and persons subject to special state taxes are required to submit reports to the Auditor-General, and the Auditor-General and treasurer are authorized to examine books and papers and to make valuations. Manufacturing and mining companies are required to make annual reports to the Auditor-General. Departmental Organization. f. ^^/loff •''^^^.^ Auditor-General, as provided by the appropria- tions of 1913, include a Deputy Auditor-General, an Assistant Deputy Auditor-General, a Chief Clerk, 13 other clerks, 7 traveling auditors, inere are also three bureaus— on corporations, on collections from pub he officers, and on accounts and expenditures— each under a chief clerk, with a staff of other clerks. Provision is made in all for a force ot 69 persons. Ohio Auditor of State. General Powers and Duties. .r.A 1^11 1""^'^^^ u^ ^^^^ '% ^^'^ ^^'^^ accounting officer of the state, and shall keep in his office full and accurate accounts of all moneys, REVENUE AND FINANCE. 153 bonds, stocks, securities and other property paid into Or out of the state treasury. He shall keep an account of all appropriations made and of warrants drawn and money paid out. No payment into the state treasury shall discharge a liability to the state unless made on the certificate and draft of the Auditor. The Auditor is authorized to draw warrants on the county treasurers for state taxes. If any county treasurer or other collecting officer fails to pay over moneys received and belonging to the state, at the time and manner required by law, the Auditor of State shall immediately inform the attorney-general, who shall forthwith prosecute proper action. On or before December fifteenth of each year, the Auditor shall inake to the governor a report of receipts and disbursements for the year ending November fifteenth, showing balances, warrants drawn and outstanding, unexpended balances, and a careful estimate of all ordinary receipts and disbursements for the year ending November fifteenth, following. This report shall include a statement of the public debt of each county, township, city, village and school district. The Auditor is custodian of public land records. The financial transactions of state institutions are to be inspected and examined by the Auditor of State not less than six times a year. Monthly financial statements are required by law. The Auditor of State prepares and transmits to county auditors forms of returns and instructions as to state finances. Bureau of Inspection and Supervision of Public Offices. By Act of 1902 a bureau of inspection and supervision of public offices has been established in the office of the Auditor of State. This consists of a chief inspector and supervisor, three deputy inspectors and supervisors, one clerk and a force of examiners. This bureau is empowered to prescribe and install a system of accounting for all public offices; annual reports are required from each institution and taxing district ; and each office is to be examined at least once a year. Maryland Comptroller. The Maryland state constitution provides that "The Comptroller shall have the general superintendence of the fiscal affairs of the state; he shall digest and prepare plans for the improvement and management of the revenue, and for the support of the public credit; prepare and report estimates of the revenue and expenditures of the state; superin- tend and enforce the prompt collection of all taxes and revenue; adjust and settle, on terms prescribed by law, with delinquent collectors and receivers of taxes and state revenue; preserve all public accounts; decide on the forms of keeping and stating accounts; grant, under regulations prescribed by law, all warrants for money to be paid out 01 the treasury, in pursuance of appropriations made by law, and countersign all checks drawn by the treasurer upon any bank or banks ; n whicii the moneys of the state may, from time to time, be deposited; rescribe the formalities of the transfer of stock, or other evidence of le state debt, and countersign the same, without which such evidence ^"aii not be valid ; he shall make to the general assembly full reports % 154 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 155 ' II I i' . proceedings, and of the state of the treasury department within ten days after the commencement of each session; and per form such other duties as shall be prescribed by law.^^ B. STATE TAX ADMINISTRATION. Local Assessments. nrnJr/?'^^. one-half^of the states the original local assessment of property for taxation is made by town or township assessors. These aates include all of those north of the Ohio and Potomac river< and cast of the Mississippi except Maryland and Ohio and also Minno- R^ r in r^- T^' ^^'^5 ^^^ ^^"^^^ ^^^^^^' ^"^ North Carolina. But in Indiana, Kansas and North Carolina the township assessors are closely supervised by county officers ; and in Illinois, county officers have some part in making assessments. In the other 17 states the township assessments are subject only to a nominal review or equaliza- tion by a county board or are subject to no county supervision what- ever. But in most of these 21 states (all except Pennsylvania, Illinois, Iowa and South Dakota) there is now a considerable measure of state supervision, through a state tax commission or board of assessors rr^.A u""'^ than half of the states the original local assessments are made by county officials ; and the county system is also used to some extent in several other states. County assessment is the regular method in nearly all of the states west of the Mississippi river and south of the umo and Potomac; and county assessors to supervise town officers have recently been established in Indiana and Kansas, while in Ohio the work of assessment has been more thoroughly centralized in the hands of county assessors appointed by the governor. Most of tlie states with county assessors have not established state tax commissions • but the most effective systems of local assessment appear to be in states which have both county and state administration, as West Vir- ginia and Kansas. Pennsylvania and Illinois are the only states which use the township system of assessment without either countv or state supervision. ^ Equalization and Review. The need for some power of supervision over local assessments has been recognized in the states by provisions for equalizing the aggregate valuations of the local districts, and in many states by pro- visions for a more effective review of local valuations. While original assessments are made by township officers in 21 states, there are only six states where there is a township board of review. All but nine i-tates have some form of county eqaulization or review— the exceptions being in New England, Delaware, Virginia and Georgia. In many states this power is vested in the county board of commis- sioners or supervisors ; but in some states a special body is established for this purpose, as in Illinois. In most states the county authorities have the power to review individual assessments as well as to equalize the aggregate valuations of local districts. All but ten states have provided for some method of state ••Const. 1867, Art. 6. Sec. 2. equalization of local assessments; and the exceptions are nearly all iiji the Southern States, where the original assessments are made by county officers. Until the recent movement for state tax commissions, state boards of equalization were usually composed of some of the elective state officials acting ex-officio ; and their powers were often limited to that of equalizing the aggregate county valuations. Only one other state — Ohio — had had a board of equalization at all similar to that of Illinois ; and this board was abolished and replaced by a permanent tax commission some years ago. State Assessment. Provision is now made in all of the states for the assessment of some classes of property, or for assessing special taxes on such prop- erty, by state officials. There are considerable variations in the kinds of property so assessed and taxed and in the organization of the state authority. But there is hardly a state where state assessment and state taxation Is not more largely used than in Illinois. Railroad property is assessed by state officials in all the states, except in some of those with special taxes on railroads. The property of other classes of public utilities is also assessed by state officers in most states. Usually the different classes of public utilities are specified, as express, telegraph, telephone, and car companies, light, heat and power companies and pipe lines. In Ohio and Oregon all public utili- ties are assessed by state officers ; and in Utah all inter-county public service corporations. In New York the special franchises of public utilities are assessed by the state tax commissioners ; and in Massachu- setts and Maryland there is a state assessment of the "corporate ex- cess" value of capital stock, similar to the capital stock assessments in Illinois, but more efficiently administered. The assessment of capital stock is limited to those corporations organized under the laws of the state ; while the assessment of the property of each public utility as a unit by a state authority is more effective in taxing all public utilities of the same class on the same basis.''** In some states the state assessments of special taxes are made by one of the older state officials, as the auditor-general in Pennsylvania and the comptroller-general in Georgia. In other states, they are made by the state board of equalization, as in Illinois, Missouri and Nebraska. In a few states, as in Maine and New Jersey, there is a distinct state hoard of assessors ; and in some states these assessments are made by the railroad or corporation commission, as in Virginia and North Carolina. Since 1901, however, state assessment and review or equali- zation has been transferred in many states to the new class of perma- nent salaried tax commissioners, as in New York, Michigan, Wisconsin and Indiana. No other state places this function in the hands of a large elective board, as in Illinois ; but in all the states assessments are made either by a single official or by a small board, of not more than five members. /.^ '"John A. Fairlle: A Report on the Taxation and Revenue System of Illinois '•JiU), ch. 10; U. S. Bureau of Corporations, Report on Taxation of Corporations, Pt. „•• PP- 8-16; U. S. Census. Report on the Taxation and Revenne Systems of State and Local Government in 1912. 1'l I !l S 156 EFFICIENCY AND ECONOMY COMMITTEE. State Tax Commissions. tax n^?.1Itc V^^ '^^^'' ^^^^ """"y. established permanent salaried state wi^hl^nn t . ^^"^"^^ssions, with powers of assessment, and usually rssessW nffiH.r''?'' ''\ ^vestlgation and of supervision over loca^ assessmg officials In a few states such officials have been provided for many years; but in most states these authorities represent a new movement, mainly since 1900. In Massachusetts, the treasurer and receiver-general acted as nffl.^Tf"?^''^''""'' ^'""^ ^^^^ '" ^^^^- I^'^he latter year the separate office of tax commissioner was established. Maryland has had a tax conunissioner since 1878, and Vermont since 188^ Indiana created a state tax commission m 1891, and New York in 1896. The latter movement began with the creation of the Wisconsin and Michigan ^^T!^-""'T ^V^^.^l^"^ '^^'^ ^^^^ b^^" ^^Pi^ly ^^"owed by other states in all parts of the country. y ^' r^r-r. ^^''}' ' ^^\ commissions or officials with similar powers are now r^r^ q. 'Ir °V'^' 'l^'^' '^""P^ Pennsylvania, Illinois, Iowa, Dela- ware, South Carolina, Kentucky, Oklahoma, Nebraska and New Mex- ico. In some of states with such officials, they act mainly as assessini; officers for certain state taxes-as in Vermont, or as a state collecting agent, as the state revenue agent in Mississippi. But in most of th? otner states the tax commissions or commissioners have much broader powers over the administration of tax and revenue laws; while in Ohio and Montana, the local assessing officers (by laws of 1913) are now appointed by the state authorities ; and in Wisconsin the administra- tion of the state income tax has been similarly centralized under the state tax commission. A notable improvement in the efficient administration of the tax and assessment laws has resulted from the work of these state tax commissions. This has been more important in states where the com- missions powers have been largest, as in Michigan, Wisconsin, Kan- sas and West Virginia. And the most striking results have been in states where the powers of the state commission have been supple- mented by a more centralized system of local administration, as in Kansas, West Virginia and Ohio. The following tables show the increase in assessed valuations of property in Michigan, Wiconsin, Kansas and West Virginia since the establishment of state tax commissions in these states • REVENUE AND FINANCE. 157 ASSESSED VALUATIONS OF PROPERTY FOR TAXATION IN MICHIGAN, WISCONSIN, KANSAS AND WEST VIRGINIA. Personal Total Real Estate Property \gcliigan, 1899 $ 968,189,087 $ 825,858,711 $142,330,376 J900 1,335,109,918 1,019,968,833 315,141,085 1907 1,654,'371,892 1,290,164,227 364.207,665 Wisconsin, local assessment, 1898.$ 630,721,497 . $ 519,713,082 $111008 415 1899. 648,035,848 528,572,241 119;463;607 1900. 746,022,932 599,540,595 146.482,337 1901. 1,082.641.094 878.911.348 203,729,746 1909. 1,613,427,747 1.314.252,061 299,175,686 State assessment, 1901. 1,436,284,000 1,186,349,139 249.934861 1910. 2,743.180.404 2,108,140,021 635.040,383 Kansas— 1907 1908 g^^^ ^st^te $269,154,500 $1,573,048,790 Personal property 78.834,269 474,191,255 Kailroads and other public utilities 77,272.445 404 320 352 $425,281,214 $2,451,560,397 West Virginia— 1905 1905 ^""^l estate $168,000,000 $476,000,000 Railroads 36.063,848 176,675,980 Other public utilities 9.379,006 29,271.650 Total all property ( 1904) $277,000,000 $875,000,000 I i !' m I '{ 1 1 Jlili i 158 EFFICIENCY AND ECONOMY COMMITTEE. c o Si 9 & I p4 (A (/) C/l (/)(/) CA CA 0) o; a> &> a> u CO (/) (A C/) a> o a a> (A en V (A (A O 4) 4> ^ (A (A CO (A 0> O V V > (A (A CA M > V V 4> V O 6 — , J!. 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CD 3 ■«-> O o u tf-4 X O) bo _ .S-o"^ 6 fr 0> CD 2 4_t C\3 .4_i v^ IQ coHcopQH CD 3 CD CD e o 3 O ■4-> bo c s ^^^^ 0*2 12 §0 ^JS-t" o ^"C ^ ^13 2i^ ' i . I ' \ 160 EFFICIENCY AND ECONOMY COMMITTEE. J 1 I i C. FINANCE ADMINISTRATION IN THE UNITED STATES AND OTHER COUNTRIES. In nearly all the governments of the world, there is organized a aftheT' ' n '"'f '/ "' '^^ ^^^^^ ^^ ^^^^i^^^ i^ - ^-^1- offidal such as the chancellor of the exchequer in Great Britain, the secretary of he treasury in the United States National Government, and the min- nf finnn ? T ^ountnes of continental Europe. Such departments of hnance include tax and revenue administration, also the custody of government moneys (the treasury) and their disbursement. In many countries, however, the auditing of disbursements is in charge of an kroner ?. """S "^^T"^ ^n ^ '^^' department of finance-as the comp- troller general in Great Britain, and the courts of accounts in France and Germany. But m the United States National Government the auditing service is under the direction of the comptroller of the treasury and a staff of auditors, who are classed in the department ot the treasury, though not subject to the effective control of the secretary of the treasury. United States Department of the Treasury. The department of the treasury in the United States National Government includes all branches of financial administration, and also control over coinage and currency and a number of miscellaneous serv- ices not necessarily connected with the finance administration. The head of the department is the secretary of the treasury, appointed b/ . the President and Senate, with general responsibility for the work of he department. I here are also three assistant secretaries of the tieasur>^ one m charge of customs, one in charge of other fiscal and currency bureaus, and one in charge of miscellaneous services. The secretary s office is organized in a number of divisions, dealing with appointments bookkeeping and warrants, customs, loans and currency, Tents^" Prniting and stationery, public moneys and special A large number of bureaus are organized within the department; and the character and scope of the functions of the department can be indicated by grouping these bureaus and their principal officers under the main divisions of its work, as follows: Revenue Services. The Customs Service, under the supervision of an Assistant Sec- retary of the Treasury, and the Chief of the Customs Division. The Internal Revenue Service: The Commissioner of Internal Revenue. The Treasury. The Treasurer of the United States. The Register of the Treasury. Auditing and Accounting Bureaus. The Comptroller of the Treasury. The Auditor for the Treasury Department. The Auditor for the War Department. REVENUE AND FINANCE. 161 The Auditor for the Interior Department. The Auditor for the Navy Department. The Auditor for the Postoffice Department. The Auditor for the State and other departments. Coinage and Currency Bureaus. Comptroller of the Currency. Director of the Mint. Federal Reserve Board. Miscellaneous Bureaus. Revenue Cutter Service, Chief. Life Saving Service, General Superintendent. Secret Service Division, Chief. Supervisory Architect's Office. Bureau of Engraving and Printing, Director. Public Health Service, Surgeon-General. The British Treasury Board, The treasury in the British Government is nominally in charge of a board of commissioners for executing the ancient office of lord high treasurer, commonly known as the treasury board This is composed of the first lord of the treasury, the chancellor of the exchequer and three junior lords. In practice, the chancellor of the exchequer is the responsible finance minister in the department in the cabinet and m the House of Commons. His main work is in connec- tion with the annual budget, both on the side of passing on the esti- mates for appropriations and preparing plans for changes in the reve- ?h^ u.u • -^ °I^^5 members of the board are political officers, hough the junior lords meet at intervals to transact formal business in the name of the board. .P.ri" ^^^'^l^'' ^o the chancellor of the exchequer, there are three secretaries— the financial secretary, the parliamentary secretary and h^ P^f^^^f^^t secretary. The financial secretary is responsible for tne estimates of the revenue departments and the civil service with?i?'^^^tt''T^''^^r "^'^^ ^^^ Treasury are the services connected with the collection of revenue and the expenditure of money. The son^r! !."f ^'^^ charge of the revenue services include the commis- sioners of customs, of mland revenue ,of woods and forests (i. e tlie land revenues) and the postmaster general. " the VlT i^,"?,^^^^""^^^^ treasury; and public funds are paid into r.n.l of England; and receipts and payments are made b) transfers on the accounts of the bank. ^ Sener^l'^whfilri,^' ^u "^l^^fl made through the office of paymaster vo"ed hv P 'r ^' ^.b^^^be/ ^" the offices through which public money be m.H^ Pa/liament was formerly paid. No payments can, however, a ts as !hr^.^'^' '^fV^I-'^ '^' comptroller and auditor-geAeral, who pr atfnnl ^f "^ ""I Parhament to control the disbursement of appro- P t^^^^^^^^^^ independent of any of the governmenf de- the tre, 'ii^ i ^^nchons keep him m constant communication with treasury, hie and the assistant comptroller hold office during ■m\ i 162 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 163 i !l I, good behavior, removable upon an address by both Houses of Parlia- ment. They may not hold any other office at the pleasure of the Crown; and neither may be a member of Parliament. In the larger spending departments, the comptroller and auditor-general has a local staff, whose audit may be said to be concurrent with the outlay. In smaller departments a monthly audit is made. Connected in different ways with the treasury are a number of miscellaneous non-financial offices and services, including the first commissioner of works and pubic buidings, the deputy master of the mint, the parliamentary counsel (who drafts government bills), the civil service commissioners, the London Gazette, the National Gallery and the National Portrait Gallery. The French Ministry of Finance. At the head of the finance department in the French administra- tion is the minister of finance, who is a member of the Cabinet, and like the British chancellor of the exchequer is primarily concerned with financial legislation — revenues, appropriations and loans — rather than with finance administration. The main divisions of the Ministry are as follows: General Inspection of Finances. Legislative services. Director of Personnel and Supplies, Director of Control and Revenue Administration. Director General Movement of Currency. Director General of Public Accounts. Director of Registered Debt. Central Pay Office of the Public Treasury. Central Control of the Treasury (Comptroller). In adjdition to the regular staff of officials and employes, there are a number of councils and committees, as follows : Honory Members of the Administration of Finance. Committee on Examination of Discounts. Consulting Committee on Conflicts. Commission on Verification of Ministerial Accounts. Central Commission on candidates for sale of tobaccos. Superior Commission for classification of employment of lottery receivers. The Court of Accounts is an independent authority which exam- ines the accounts of all administrative officers. It is composed of a first president, several division presidents, master councillors and refer- endars, all appointed by the president of the Republic for Life. There are also a body of auditors, who act as assistants and from whom the higher positions are filled. This court has original jurisdiction over the accounts of the central government and of the larger municipali- ties; and acts as a court of appeal from the councils of prefecture on the accounts of the great number of small communes. This court does not make a current audit of financial transactions ; but makes an annual examination of financial accounts, officials having an oppor- tunity to answer any charges or disallowances made in their accounts. Appeals on questions of law may be taken to the Council of State ; and in cases of fraud, the matter is reported through the minister of finance to the minister of justice for action. Prussian Ministry of Finance. At the head of the department of finance in the Prussian admin- istration is the minister of finance. The department has three main divisions, with each of which are connected various services, as shown in the following analysis of organization: Minister of Finance. Under Secretary. Services : General State Treasury. Royal Maritime Commerce (a banking institution). Prussian Central Co-operative Bank. ^ Superior Administration of the State Debt. Division I. Accounts and Treasury. Services : General Direction of Lotteries. Coinage. Institute for care of widows. Division II. Administration of Direct Taxes. Direction for administration of Direct Taxes in Berlin. Tax Treasury. Division III. Administration of Customs and Excise. Provincial Tax Administration. Chief Revenue Director for Berlin and Brandenburg. Chief Stamp Bureau in Berlin. Stamp and Inheritance Tax Office. Superior Educational Institute for Revenue Officials. Chief Customs Treasury. Office of Receiver General. Service in Connection with Ministries of Agriculture and Public Works : Superior Examining Committee for Surveyors. The Superior Chamber of Accounts is an independent body, which audits the budget accounts, and supervises the Income and outgo of public property and the administration of the public debt. Bavarian Ministry of Finance. fun ^^^ ^i"istry of Finance in Bavaria has charge of the following 1. Administration of the financial resources of the State, Includ- ing land holdings, except those under the Minister of the Interior. ^. Administration of Public Revenues. 3. Preparation of budget and submission of bills to the legislature 4. Administration of State Debt. 5. Supervision and Administration of Expenditures. o. Supervision of the Superior Court of Accounts. /. Financial relations of Bavaria with the Empire. 8 The assessment of circles and affairs of local councils with the Minister of the Interior. iH w\ 164 EFFICIENCY AND ECONOMY COMMITTEE. >; I!' The principal divisions of the ministry and other related offices include : The General Direction of Customs and Indirect Taxes. The General Direction of Mines, SmeUers and Salt Works. The Ministerial Division for Forestry. Central State Treasury. Royal Bank and affiliated banks. Chief Mint Office. Direction of State Debt Administration. Superior Commission of Appeals. Superior Court of Accounts. Cadaster Bureau (Land Records). Ill > ( ' .. . REVENUE AND FINANCE. 165 III. STATE CONTRACTS, PRINTING AND SUPPLIES. A. STATE BOARD OF CONTRACTS. The Board of Commissioners of State Contracts consists of the Secretary of State, Attorney-General, State Treasurer and Auditor of Public Accounts The board is authorized to elect one of its members as chairman ; and to hold stated quarterly meetings, and special meet- ings upon the call of the chairman or any two commissioners; and is required to keep a record of its proceedings. Three members consti- tute a quorum. Meetings for awarding contracts must be held in the presence of the Governor; and the consent of the Governor is required to let contracts, to reject all bids, or to suspend or cancel any contract. It is the duty of the state board of contracts to supervise the let mg of contracts for furnishing fuel, stationery and printing paper fctrbutWnfth*^ ''^'^- ^"^^°' *' '=°Py'"&' P""ting, bindin| a^nd distributing of the laws, journals, reports and all other printing ordered ttin/fnr"h'/' f'"'""^!^- ^^' ^'"'"'^ ■•^g"'^*^^ *e method If Adver- tising for bids for such contracts, the opening of bids and the award of contracts. Advertisements for bids are required to be made bien So Lfi" ,H Tru- "^ J">-'". ^ *^^''y Springfield paper for fuel, at ;„d af W?"l 9,^^'"?? f"-- Pitting and other paper and stationary, and at Springfield, Chicago, Peoria, Quincy and Cairo for copying be acromn?-"? k' ''t^^'T ^".'^ ^"^ °*«'" P"'''''^ documents. Bids must on or bXr."i\''°r^.'^ ^' *? '^^ "^-"^d '" *^ advertisement- awardinf .. * *t ^-"^ ^^°"day m September-the board meets for award ng contracts, ,n the presence of the Governor. No contract may n Inv e-^^ '^ % ''^ *' ^'1"^' Assembly, State officer or employee IvZ f ^^"*'^^ °ffi<=!' or to the wife of any such persons ; nor may s"ons are m.i'"/°"f .^''°'"' '"terested in any such contract. Provi- tract, /nd .?> for letting contracts at other times, for cancelling con- tracts and for settling accounts of contractors. in? ; Jt'iV*^*",*^ '^''''^^^, the state printing into four classes, and bind- mSirS^'n • ; ^"'*, '^T^^' ^°' ^^"^ <^'^^^ ^^^ ^""ns of bids, the "umW ?^f P"'- ^"^r '*y'^ °^ composition or manner of binding. The DrintJ K *'°5'^' of reports of certain officers and departments to be arTlii r"? f"*^ distributed are also provided. Maximum prices tribut n^ I • ^°F"^^ '^'^'' resolutions and journals, for dis- fuel tJ*^^' •'°'!™^'s and documents, and for paper, stationery and and have kTo?a°"^[' °^ ^*^'^ Contracts are authorized to print boards rl-!3. u° ^"l"""" containing reports of institutions and aras required to be made to the Governor or General Assembly. No i i i i j 1 ! I i ' 1 ». 166 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 167 report may exceed 400 pages, unless on a certificate from the Governor to the Secretary of State that the interests of the State require that such report shall contain more than 400 pages. Regular meetings of the state board of contracts are scheduled to be held weekly, at which requisitions for printing are submitted with the Printer Expert's estimates ; and the board grants authority for such orders as it approves. The Printer Expert. The Governor is required to appoint a practical printer, who has had experience in estimating book and job work, and has worked at the trade for six years, to prepare specifications upon which bids for public printing shall be made, to read proof, to measure the work, to estimate the amount of paper required for each job, and to examine the accounts. He receives a salary of $2,500 a year, and is subject to removal at the pleasure of the Governor. The Printer Expert is under the supervision of the Secretary of State in his office; but in measuring and estimating the price of work and examining accounts, he is not subject to the orders of the Secre- tary. Any conflict of opinion between the Secretary and the Printer Expert shall be decided by the Commissioners of State Contract«J. The commissioners are not bound by the action, opinion or measurement of the Printer Expert, but may inquire of and take the evidence of otlier experts upon all matters connected with said printing, but in no case shall they raise the estimates. In the State contract law provision is made for the appointment of a bill proofreader during the session of the General Assembly. Appropriations are made for other proofreaders and employees. The positions provided by statute and appropriations, and the staflF of the office in October, 1913, are shown below: Staff Appropriations Oct., 1913 Per Annum Per Annum Printer Expert $2,500 $2,500 Assistant Printer Expert 1.800 1,800 Two Proofreaders at $1,200 2,400 2,400 Bill Proofreader, $4 per da}'^ Proofreader and Stenographer 900 Copyholder ' 900 Extra Help 3,000 Messenger and Janitor 840 840 Postage and Office Expense 300 300 $9,040 $9,640 The procedure in connection with orders for printing and binding is intricate and complicated. A requisition for printing is made out by the department in triplicate and sent to the Secretary of State. This IS submitted to the Printer Expert, who prepares and sends to the Secretary of State an estimate of the cost. The requisition and esti- mate is submitted to the State Board of Contracts, which authorizes the work; and the Secretary of State issues an order for printing to the Printer Expert. Emergency orders are issued directly by the Secretary of State without action by the State Board of Contracts. On receipt of the order the Printer Expert makes out and sends an order with order for paper, to the Supply Department (for fourth class printing), or directly to the printing contractor (for second class printing) as per forms attached. The Supply Department forwards the order with paper to the contractor. Proofs are sent to the Printer Expert for correction. Orders for binding are issued directly by the Secretary of State to the binding contractor; and the printed sheets -are sent by the printer to the bindery. When the work is completed it is delivered by the printer (in the case of stationery) or by the binder to the Shipping Department This department sends a sample to the Printer Expert with a notation of the number of copies received, and also delivers the work to the department for which it was done. Bills for printing under the general contract come to the Printer Expert for his approval ; but bills for binding, lithographing or non- contract printing do not come to this office. Expenditures for public printing and binding in Illinois have in- creased rapidly especially during the last ten years. As shown in the following table, the total of the items shown in the reports of the Auditor of Public Accounts has risen from $102,207 for the two years ending September 30, 1892, to $171,719 for the two years ending Sep- T\l\o^'^^^-' and to $444,489 for the two years ending September 5U, IVIZ. Ihe increase in the first decade was about seventy per cent • in the second decade almost two hundred per cent— and the total in- crease for the two decades has been three hundred and forty per cent 1 hese totals include the expenditures under the general contracts for printing paper and stationery, public printing and public binding; and also the expenses of the Printer Expert's office, additional expenditures tor printing and stationery shown in the accounts of the separate state othces, and payments for the purchase of Supreme Court reports. Of these several items, the largest increases have been in the expenditures tor printing paper and stationery, and the expenditures outside of the general contracts. Not all of the expenditures for printing and stationery are shown r.rc f ,^^?' ' '^F""'^' ^^^ '^P^^^ ^^ th^ Comptroller of the Uni- versity of Illinois for the two years ending June 30, 1913, shows ex- penditures for publications of $58,092. Probably there are similar expenditures at other institutions and offices. Comments. and T^^i ^^^ '■^^^u'''^ toSi^te contracts for printing, binding, stationery vvhiil.?'"^^''''!^^^ ^ ^'^^^y complicated series of arrangements, in vvnicn duties and responsibilities are distributed between the Governor :^ecretary of State, State Board of Contracts and Printer Expert* While many details are definitely specified in the law, and at the same ime no provision is made for some important matters. As a result inoffi "^ ! ^"^^^^i^y can be held clearly responsible for mistakes or inemcient methods. n;,n.'^^P/^P'*'^^'^"^ ^""^ ^^^^ ^" ^""^P s""^s for printing, binding, Fdper, stationery and heating and lighting; and payments made out fi ,! , I fi 168 EFFICIENCY AND ECONOMY COMMITTEE. of these appropriations are not charged to the appropriations for the several offices and departments. The Secretary of State keeps accounts of printing, binding and stationery for the different offices, which are summarized in the statement below for 1910-12; but these amounts do not appear in the expenses of the several offices. The sum of the l?l^nn^^ reported by the Secretary of State for the several offices was $83,000 less than the amount reported by the Auditor of Public Accounts as expended from the general appropriation for printing, paper and stationery for the same period. At the same time much printing, binding, stationery and fuel is purchased by the several departments, institutions and offices out of their separate appropriations. For example, this is true of all the fuel purchased for the state institutions; and many offices have their office printing done through the printing department at the State Reforma- tory, or by private printers on release from the board of prison indus- tries. The result is that the appropriations for the several offices and institutions do not show all their expenses for such supplies; nor do the general appropriations for printing, binding, stationery and heating and lighting show all the expenses for these purposes. In many respects the details specified in the law hamper the most efficient and economical method of furnishing such supplies; and better results could be secured by giving more discretionary powers to the officials in charge. On the other hand, in the matter of printing, while the method of making contracts and the technical work is care- fully regulated, there is no provision for editorial supervision or any effective control of the bulk of material to be printed. The present Printer Expert is endeavoring to enforce the statu- tory limit of 400 pages for any department report, and to keep down the bulk of reports within this limit, by reducing the amount of waste space in printing. Payment for composition is said to have been made two or more times when the same type has been used for matters duplicated in different orders ; and efforts have been made to prevent this in the present contract. The Printer Expert has met with the Board of Classification to discuss prices to be charged for printing by the State Reformatory. Responsibility and control over printing, binding and other sup- plies should be simplified and more definitely concentrated in a Super- intendent of Printing, who should actively co-operate with the printing establishment in the State Reformatory. Printing bills should also be charged against each department ,and included in the expenses of such department, though a record should also be kept of the total amount expended by all offices for such purposes. The State Board of Contracts should be abolished; and contracts for printing, binding and office supplies should be made by the Super- intendent of Printing and Supplies— subject to the approval of the proposed State Comptroller, and also of the Governor as required by the Constitution. Such contracts should include more nearly than at present all of such supplies for the various state officers and boards. C/5 o o Q w Q < n D o CO ^ Q REVENUE AND FINANCE. a 0) "rt c 4-> ii o H in 1-1 rv] r-t \n in 5^ o\ uS S ^ "-^ fV^ Tj- tx P^ nf '^" G 'Kt m «9- jP o\ fsi in tv ts. »-< o t> ^ 0\ ^ 0\^ NO tx CM 00 in .-H oo" o' Pi be: u be M . •.1 M »4 o a "I j^ •* •* ^ V "^ i, '"•»," 1. "^-.■'■^ "^ ^^*^ ^"^^ ^"^^ *"^ *^^ W> ^-i> c~3 i_D CSfc 4^ O ^ Tl-Csl vo «/-. »4- /— s »*N : /sX .^ • ^ .• ^ • _ • .• ■ ^ ]! ^^ ^. vO coco On O «— • U-) T:f in in S J2 r:! 22 i:> <^ t^ CM '^ in 00 i-H ,-; cocOT-<0000'-H\OcONOco(vjt^fvi CM r-lCM CO-HCMT-HCg .^ tnr-J 52)^00 )in (CO CO iTitn 00^' CO »— I t-i to O PON ^.N. s ^§ § s s i I I I I I s :a « © ^ H ^ A © 4> * I I S P oo=5 fldfO 0*0 169 ii IB r I ^■<\ 170 EFFICIENCY AND ECONOMY COMMITTEE. STATEMENT OF PRINTING, BINDING AND STATIONERY, for the BIENNIAL PERIOD ENDING SEPT. 30, 1912. Printing Binding Stationery Total Paper and General Assembly $ 24,688.67 $ 7,117.72 $ 11,979.28 $ 43.785.67 Judiciary (Supreme Court) .06 06 Governor 1,395.67 96.61 1,663.41 3,155.69 Lieut. Governor 91 68 91 68 Secretary of State 9,144.04 3,179.16 12,391.53 24,714.73 Printer Expert 19.22 10.20 312.25 341.67 Attorney-General 4,785.60 1,040.20 3,782.91 9,608.71 Civil Service Commission 480.14 284.40 1,370.11 2,134.65 Finance Administration. Auditor of Public Accounts... $ 12.326.39 $ 1,182.30 $ 3,325.31 $ 16,834.00 State Treasurer 140.90 266.20 754.18 1,161.28 State Board of Equalization... 1.68 432.15 433.83 $ 12,467.29 $ 1,450.18 $ 4,511.64 $ 18,429.11 Control of Corporations. R. R. and Warehouse Com....$ 5,279.10 $ 3,081.43 $ 2,400.52 $ 10,761.05 Insurance Department 9,851.67 4,464.10 5,414.12 19,729.89 $ 15,130.77 $ 7,545.53 $ 7,814.64 $ 30.490.94 Public Safety. State Board of Health $ 1,716.55 $ 312.45 $ 3,116.81 $ 5,145.81 Dental Examiners 70.54 44.62 115.16 Board of Pharmacy 791.36 62.57 598.88 1,452.81 Food Commissioner 1,358.04 888.37 ,1,023.13 3,269.54 Fire Marshal 27.01 2.50 418.55 448.06 Building Commission 2.45 2.45 $ 3,965.95 $ 1,310.51 $ 5,157.37 $ 10.433.83 Labor and Mining Bureaus. Bureau of Labor $ 7,863.47 $2,486.08 $ 3,407.34 $13,756.89 Free Employment Offices 522.23 522.23 Factory Inspector 2,277.34 143.00 2,420.34 State Mining Board 2,273.95 2,273.95 Mine Examiner 1,155.62 1,155.62 Mine Rescue Station Com 73.41 184.54 64.58 322.53* Board of Arbitration 45.74 23.16 68.90 $ 12,488.17 $ 2,859.36 $ 5,172.93 $ 20,520.46 — — — — .^— • ^—^.^—^^^~ —I Agricultural Interests. State Board of Agriculture.... $ 1,791.82 $ 801.60 $ 792.16 $ 3,385.58 Farmers' Institutes 4,527.81 14,399.56 1,422.84 20,350.21 Live Stock Commission 745.76 596.79 861.69 2,194.24 $ 7,065.39 $15,787.95 $ 3,076.69 $ 25,930.03 REVENUE AND FINANCE. 171 „ ^,. _ , ■ . Printing Binding Stationery Total Public Education. Paper and Supt. Public Instruction $ 4,341.46 $1,284.07 $ 2,026.94 $ 7,652.47 Board of Education 19 ' ^q Educational Commission 72.67 274 40 347 07 State Educational Bldg. Com.. * 322 322 $ 4,414.13 $ 1,558.66 $ 2,030.16 $ 8,002.95 University of Illinois 2,812.45 212.57 3^02102 Sicientific Investigation. Geological Survey 1,783.99 819.40 1,020.99 3,624.38 Libraries and Museums. ' '■ ~ State Library ... irr^^ Historical Library i^^^n i55l? "'-^^ 266.84 Library Extensfo^ 6on;.V.V.:: • '■'^9% ^'^'^ ^V^^ ^,885.39 SSaf'S/'"— ^^ 1^60 ii:8? ;%,1 ^ 737.56 737.56 $ 1,638.97 $ 2,003.38 $ 1,087.36 $ 4,729.71 Charities. ~ — Chester State Hospitai.':: ;; ;;; 5363 ?5S Elgin State Hospital 1 12 7« ^^"^ Jacksonville State Hospiiai \\\\ 10828 li^^ Kankakee State Hospital 125.74 JS?'^ Peoria State Hospital 95 26 n/^t ' Watertown State Hospital....: 80:83 ^o^ Lincoln State School and Col. 8691 f?m Industrial Home for the Blind. 35.84 f?"^ school for the Blind. m«ft ^^'^ School for the Deaf. 86 m ^^ Soldiers' Widows' HomeV;.* .' [ \ 22 06 f^*^ Soldiers' and Sailors' Home. . . 167.88 3^ St. Charles School for Boys. .. 48.61 ^lif? Training School for Girls 57 59 fAl Soldiers' Orphans Home ^7Z2 %f^ IH. Charitable Eye and Ear ^^'^ ^""^'"^^^y 66.90 66.90 $ 7,566.13 $ 1,675.75 $ 4,547.80 $ 13,789.68 Penal and Reformatory. Southern 111. Penitentiary $ 109 15 $ «fi * iA«,r Sl:;: ^p^^^^. ^^ /^^^-^ 38i7 ^ 49.95^ 149 70^ 23^32 ^tate Board of Prison Indus- ^^'^^ ^^^'^^ tries ... 132.74 132.74 $ 147.82 $ 49.95 $ 282.44 $ 480.21 - r ■i ( M ■ I: 172 EFFICIENCY AND ECONOMY COMMITTEE. Printing Binding Stationery Total Public Works, Parks and- Monuments. Paper and State Highway Commission. ..$ 798.81 $ 600.24 $ 1,105.12 $ 2,504.17 Canal Commission 122.81 90.00 212.81 Rivers and Lakes Commission. 321.26 335.64 656.90 Illinois Parks Commission 68.80 17.00 85.80 Lincoln Monument Assn 14.77 14.77 Lincoln Home 8.00 8.00 Internal Improvement Com 270.00 270.00 Fish and Game Commission... 654.67 654.67 $ 1,311.68 $ 1,320.88 $ 1,774.56 $ 4,407.12 Military Administration. Adjutant General $ 3,991.86 $2,077.59 $ 4,450.42 $10,519.87 Miscellaneous 33.25 33.25 Grand Total $115,297.94 $50,400.06 $72,551.42 $238,249.42 On Hand Oct. 1, 1912 6,380.65 6,380.65 $115,297.94 $50,400.06 $ 78,932.07 $245,630.07 Auditor's Report for 1910- 12.. $138,150.04 $61,261.59 $129,520.01 $328,931.64 • REVENUE AND FINANCE. B. PUBLIC PRINTING IN OTHER STATES. 173 In most states control over public printing and binding is distrib- uted, as in Illinois, between several offices and boards. Often there is an ex officio board which makes contracts ;and an officer who looks after the technical work of proof reading and checking up printing bills. The statutes usually contain detailed provisions as to the style of printing, the number of copies and the like. Of the larger states, Pennsylvania appears to have the most efficient organization. The Superintendent of Public Printing, ap- pointed by the Governor and Senate, makes arrangements for con- tracts, and handles printing orders; but contracts must be approved by an ex officio board, and orders for printing considered by the superintendent to be unnecessary or unreasonable may be referred by him to the Governor. In several other states some provision is also made for adminis- trative control over the form or amount of printing. In Ohio the Governor may order the condensation of any report; and in Massa- chusetts, a board of publications defines the form and extent of any printed report. In Iowa and Kansas, the executive council has some control ; and in California the Superintendent of Public Printing may disapprove orders he considers unnecessary, subject to review by the state board of control. In many states there are lump sum appropriations for printing and binding— though more or less printing is done by the various offices and institutions out of their separate appropriations. In Massachu- setts and Wisconsin printing bills are charged against the appropriation for the separate offices ; but in Wisconsin a record is also kept of the total expenditures for printing. California and Kansas maintain state printing plants, which print school books as well as the usual public printing. Court reports are usually not included in the general contract for state printing ; but are printed under separate arrangements. Expenditures for public printing have been increasing; and there IS a wide variation in the amounts paid in the different states. New York shows much the largest expenditures, even in proportion to popu- '^^^^"' ^^^isconsin and California apparently spend more proportion- ately than Illinois ; while Ohio, Pennsylvania and Kansas show rela- tively smaller expenses for printing. /^he Auditor of Ohio in 1913, and the Secretary of the Common- NNealth of Massachusetts in 1914, in their reports, commented on the unnecessary number of separate authorities dealing with public print- ing m these states. ^ f f ^ew York. (^r.^^!^^\? ^^ ^ Printing Board, consisting of the Secretary of State, ^ omptrolier and Attorney-General, which has general control and ronr"?^^"^^'^^^ of all printing done for the state, and makes such ^^nerai and special regulations as it deems advisable. 1- 174 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 175 1^ ^ The Printing Board is authorized to employ the necessary clerk hire, payable from the fund for legislative printing. In 1912, the staff of the printing board consisted of : Salar}- Printing expert $3^500 Proofreader 1 800 Stenographer l[200 Clerk 1^200 Page 360 Total .$8,060 Public printing payable by the state is divided into three parts— the legislative printing, the department printing, and the printing of the session laws. The law contains detailed regulations as to procedure in making contracts, forms and specifications, the manner of printing, and in the case of legislative printing the number of copies to be printed and the time of delivery. Contracts for publishing reports of the court of appeals are made by the reporter, subject to the approval of the chief justice; for ap- pellate division reports, by the supreme court reporter, with the approval of the presiding judges ; and for miscellaneous court reports, by the miscellaneous reporter, secretary of state and comptroller. The expense for public printing in New York State is much the largest of any state; and is much larger in proportion to population than in other states. In 1908, the total expense for legislative and department printing was $723,968; and in 1912, this had increased to $1,072,753. From 75 to 85 per cent of this expenditure is for legisla- tive printing, which amounted to $530,900 in 1908, and $874,400 in 1912. COST OF LEGISLATIVE AND DEPARTMENT PRINTING, 1908-1912. Year ^ Legislative Department Total 1908 $530,900 $186,816 $717,716 1909 672,038 206.712 878,750 1910 582.884 201,173 784,057 1911 620,857 170,592 791.448 1912 874.400 189,981 1,064,381 Pennsylvania. There is a department of public printing and binding, appointed by the Governor with the advice and consent of the senate, for a term of four years. The sahries for this department in 1913 were as follows : Superintendent of public printing and binding $ 3,000.00 Clerk hire 8,12824 Proof readers and copy holders 2,269.34 Total $13,397.58 The superintendent advertises for proposals for public printing and binding and for supplies, pres(?ribes forms for bids and receives the bids; contracts are allotted to the lowest bidder, with the approval of the Governor, auditor-general and state treasurer. The statute contains detailed regulations as to procedure in contracts, and as to size of paper, style of binding, number of copies and the like. The superintendent receives all orders, not otherwise provided tor, for all blanks, blank books and miscellaneous printing and binding needed by the legislature, departments, commissions, etc., and has them executed by the contractors and delivered. If he considers any orders unnecessary or unreasonable, he shall refer them to the governor for approval or disapproval. No public printing, binding or supplies shall be furnished by the contractors unless ordered in writing by the super- intendent. Expenditures for public printing and binding in Pennsylvania are less than a third of those in New York State ; and they compare favor- ably with the expenditures in the other important states. The expen- ditures since 1910 have been about $300,000 a year, less than in 1901, and from 1904 to 1906. Ohio. The secretary of state, auditor of state and attorney-general are ex-officio commissioners of public printing; there is also a Supervisor of Public Printing, appointed by the Governor, with the advice and consent of the senate, for a term of two years, at a salary of $2,000 a year. He must be a practical printer. The supervisor's office has also a chief clerk, a stenographer and a messenger; and there is a state bindery at the state school for the deaf, with a foreman in charge. The auditor-general, in his 1913 report, recommended that the commission- ers of public printing be abolished, and all of its duties be placed upon the supervisor, who is better fitted by training to perform them. The commissioners of public printing make contracts for printing and binding, subject to detailed regulations in the statutes. Contracts tor printing supreme court reports are made by the reporter, with the approval of the supreme court. Specific provisions are made by law as to the number of copies of each report or document, size of type and the I'ke. The Governor may, however, order the condensation of the report of any other than an elective state officer. The Supervisor of Printing exercises about the same functions as the Printer Expert in Illinois. He corrects proof and prepares in- dexes, and he audits the accounts and approves bills for printing and binding. Expenditures for printing, binding, and paper in Ohio vary to a considerable extent from year to year; and have increased in recent years, especially in 1913. From 1900 to 1908, expenditures averaged about $130,000 a year; but rose to $187,615 in 1909; they were $178,- 433 m 1911, $169,495 in 1912, and $255,255 in 1913. Prior to 1913, the expenditures m Ohio had been considerably less than in Illinois. ^Massachusetts. The Secretary of the Commonwealth supervises the state print- "}g; and all publications by the commonwealth shall be printed and distributed under his direction, unless otherwise provided. He pur- chases paper to be used in state printing, and has the custody of all Plates owned by the state. He may employ an expert in printing to examine bills for printing. . f 6 fif •■■.'. 176 I V. REVENUE AND FINANCE. REVENUE AND FINANCE. 177 \i The attorney-general, secretary of the commonwealth, treasurer, receiver-general, auditor and clerks of the senate and house advertise for bids, and make contracts for printing. A state board of publications, consisting of three persons from different branches of the public service appointed by the governor, with the advice and consent of the council, must examine all reports of state officers, boards and commissions (with certain exceptions) and define their form and extent— the number of pages, and whether they shall include maps and illustrations. Appeal may be taken from the decision of this board to the governor and council, whose decision shall be final. In 1914, the board comprised the director of the bureau of statistics, the clerk of the house of representatives and the clerk of the commissioner of public records. Since April, 1903, the cost of printing such reports and documents is charged to and paid from the appropriation of the department from which it is issued. No record appears to be kept of the total cost of state printing and binding. In the 1914 report of the secretary of the commonwealth he ex- presses regret that in practice supervision of state printing is exercised by three heads — the secretary of the commonwealth, the board of pub- lication and the auditor. IVisconsin. There is a state printing board, consisting of the secretary of state, state treasurer and attorney-general. The printing clerk is secretary of the board, and has an assistant. The board lets contracts for printing and paper, and also for su- preme court reports, subject to detailed statutory provisions as to ad- vertising, and form and conditions of the contracts for different classes of printing. The board also directs the manner, form, style, quantity and method of all public printing, not expressly prescribed by law; and can increase or diminish the prescribed number of pages and editions. Printers' copy and requests for printing are received from the several offices; and the secretary of the board issues orders to the state printer (the contractor for the class of work) — except for legislative printing, official newspaper and court reports. Printing is delivered to the superintendent of public printing, who has charge of the distribution, except court reports. The cost of public printing and paper for state institutions is charged against their general appropriations — with some exceptions. Expenditures for printing for the past ten years have ranged from $60,050 in 1905 to $163,351 in 1910, $204,427 in 1912 and $216,326 in 1913. Before 1912 the expenditures averaged about two-thirds those for Ohio ; and for the last two years the Wisconsin expenditures have been as much as those for Ohio or Illinois, which are much larger and wealthier states. Iowa. The Executive Council — which consists of the Governor, secretary of state, audit or and treasurer — among other functions, purchases paper for public printing, and makes contracts for printing and assigns work to the state institution for the deaf and dumb. The secretary of the executive council issues blank forms for printing orders and keeps accounts of printing materials issued to the state printer. The Governor shall cause reports to be printed, after examination and omission of all matter he may deem not of sufficient importance to warrant publication at the State's expense. The prices to be paid for printing and binding and the number of copies of each document to be printed are specified by law; but the executive council shall reduce the number of any report provided the books of the document accountant in the office of the Secretary of State show that a less number will supply all the necessary needs. A state printer and a state binder are elected by the General As- sembly, for terms of two years, who have offices in the state capitol. The work is subject to examination and certification by the secretary of state, who also has charge of the distribution of documents. Kansas. The executive council — consisting of the Governor, secretary of state, auditor, treasurer, attorney-general and superintendent of public instruction — makes contracts and purchases for stationery for the state offices, legislature and supreme court, and may revise estimates of the state printer as to paper and binding materials needed. The printing commission — the secretary of state, attorney-general and state printer — determines what printing is necessary and may re- fuse requisitions for printing, it furnishes specifications for printing and binding; and it has charge of all newspaper publications. The State Printer is elected by popular vote for a term of two years, at a salary of $2,500. He has control of the state printing plant, which does all the public printing and binding, except what the printing commission permits to be done at state institutions where a printing plant is established. California. The Superintendent of Public Printing is appointed by the Gov- ernor, with the advice and consent of the senate, and holds office at the pleasure of the governor. He shall be a competent practical printer. He receives a salary of $5,000. There is also a deputy, at $2,400, a copy editor at $1,800 and a watchman at $1,200. The monthly wages of the printing office in 1911-12 amounted to $13,185. The Superintendent of Public Printing has charge of the state pnnting plant, which does all the printing of the state unless otherwise expressly provided for by law. This includes the printing of school books. Supreme Court reports are published under a contract made hy the reporter, secretary of state and attorney-general ; but if no suit- able contractor is found, the state printer shall print these reports. ^ 3 Nl 178 EFFICIENCY AND ECONOMY COMMITTEE. The Superintendent of State Printing shall decide upon the style and manner of printing all laws and other state documents. He shall receive and promptly execute all orders for printing and binding for the various state offices, with discretionary authority to revise, reduce or decline to execute any order, or part of any order, which in. his judgment is unnecessary or unwarranted by law, and which will tend to unnecessarily consume the appropriation for the state printing office • but If any state officer, board or commission considers his decision un- fair he may refer the matter to the state board of examiners which shall determine the matter. Yearly estimates of the kind, quality and amount of paper needed are submitted by the superintendent to the board of examiners, and with their approval the superintendent advertises for bids, and contract is awarded by the board of examiners to the lowest responsible bidder bince 1911 the powers of the board of examiners are exercised by the state board of control, which consists of three members ap- Ia^ ^>:J-^\^°^^'"°^' to ^old office at his pleasure, at salaries of $4,UUU. Ihis board has control over state institutions and public buildings, invests school funds, may examine books of public offices must approve bills before the controller can draw warrants make recommendations to the legislature as to claims against the state ap- proves contracts for supplies, and may authorize deficiencies in ap- propriations if necessary. Expenditures of the State Printing Office have varied a good deal from year to year; and have been increasing, from $139,886 in 1900 to oo^o^oA?''"'.?^ $377,148 in 1911. In 1911 there was a decrease to ^Z^«,«95, which the superintendent claims was due to increased ef- ficiency. Deducting the expense for school books, the printing expen- diture for California has been larger than in some other states of the same population, and not much less than in the more populous state of Ohio. \i t-H Q t— I PQ Q < O 1-1 H 1-4 06 o M •J < u Q < < < C/3 o < H CO o (A u CO •-I o Z »-t •J ^2 W > X >J Z u 04 06 O REVENUE AND FINANCE. 2 88888 888888 vQ to '^ CO 0\ OOOCM CVJiO -j oTcvf ooTtC gcortl^CMro p »-H eg »-t o i>! ocf ■^co On vOl^cO CO CQ Csj CM CO c4 o) Q rt CO 88 88 8 V) V CO •-( too (Min lOCO NO CO mo 00 «^ d '55 O C ^ O [Nd »-HLO"^ON-^0QLOi-tCVlP^ ON NO O^On CD '^'^^"^ **1 rf Q OT OO" fvf CO CO CO -"^ NO ooooovoONOrqo'-' tn O^ O O O O O cOtJ- On i-t d oJ'Tl IT* ON ■ I ■< W^ *^ m. » C/)CO I>^ 00 »-• f-H i-H "•^ o o oC CM CM o o NO NO oT lO CO Si 00 EC O ^ O ^88888888888888 "•ojcocoO' s! O •— • On »— • ^ fM Trt- LO vTi ' ■CM TfiOvO CM' >00'^"^'-'COmiO >ro*^'— 'OnCOOnio ,^ -«,^_j^,^^^. .OtJ-cOnOcO'^^'^CM Jz Tf ^^^u^ lo NcT'-J'in ocM tCmoo oCio ^rO'-HT-HT-tCMcO'^OOCOOOiOtN.NOto '-'^r-l,-HCNl^»-H.-H^,-4r-l»-4CM n) d CQ CO d d Oh 8S88S8S88888SS §cococot>^Tt^I o "^ '-' '^ lOr^ro^ONOcO'^t^^ONfMT-i vO"j^o<5ooocoi>vCMvo'*> o CO > o o o CO 88888 1^ ^»— • CO On LOioONl>«. COvOf-TOCfCsf CM 00 On o^*^ <«- bo d c« d '-• CM CO "i" lO ' OOOQ di ^; Oi-^CMCO t^oo r" ^^ On On On On On 0^ On On On ON On On On On o •a i'\ 179 e EH m4^ 180 EFFICIENCY AND ECONOMY COMMITTEE. REVENUE AND FINANCE. 181 K i IV. RECOMMENDATIONS. State Finance Commission. ^ In Illinois, as in most States of the Union, the constitutional pro- visions for the election of two officials dealing with state finances—the Auditor of Public Accounts and the State Treasurer— prevent the or- ganization by statute of a thoroughly consolidated department of finance under the control of a single official. But it is possible to provide a more efficient organization than at present, and to secure more definite relations between the several finance officials. u^\^j^^^^^ ^°^ ^"^^ ^" organization it is proposed that there be established a State Finance Commission, to consist of the Auditor of Public Accounts, the State Treasurer and three members, to be ap- pointed by the Governor and Senate. One of the appointed members u\a u ^^^^^ Comptroller and chairman of the commission, one should be Tax Commissioner and one Revenue Commissioner. The Finance Commission should take the place of the State Board of F.qualization, the State Tax Levy Board and the Court of Claims, and should have general supervision over finance administration; while the several members should also have specified powers and duties in par- ticular field. The State Comptroller should receive a salary of $7 500 a year, and the other appointed members $6,000 each. The powers of the Finance Commission should include : (a) As to Revenue Matters: To prescribe forms and to issue rules and instructions for assessors and collectors of State revenues. To hear and determine appeals from county boards of review and from assessments by the Tax Commissioner. To hear complaints and order investigations of the operation of the tax and revenue laws, and in special cases to appoint local assessors and order the reassessment of a taxing district. To equalize the aggregate county valuations of property for taxation. (b) As to Accounts and Expenditures: To prescribe forms for accounts, financial reports and esti- mates of appropriations for the several State offices and depart- authorized by law. To order examinations of the expenditures of State offices, departments and institutions, and to make final settlements of accounts of State officers. To hear and report to the General Assembly on all claims •gainst the State now brought before the Court of Claims. (c) To investigate the revenue and accounting laws of other states and countries, and to recommend changes in such laws in Illinois. The State Comptroller should have general superintendence over all matters to be acted on by the Finance Commission, and supervision over the Tax Commissioner and Revenue Commissioner. He should be charged with the preparation of estimates of revenues and approp- riations to be submitted through the Governor to the General Assembly at each regular session. He should approve general contracts for printing, fuel and supplies, w4th the approval of the Governor; and he should have control over salaries of departmental employees, within the limits of the appropriations. He should also take the place of the department and institution auditor with power: to prepare forms for accounts, financial reports and estimate for State officers and departments and for local collectors of State revenue, subject to the approval of the Finance Com- mission ; to examine the business methods of State offices, departments and institutions, as directed by the Governor or the Finance Com- mission ; to prepare forms of accounts and financial reports for such county and local officials as may be authorized by law. The Tax Commissioner should have power : to prepare forms, rules and instructions for local assessors ; to receive abstracts of assessment, and prepare data for the equali- zation of local asessments bv the Finance Commission ; to make original assessments of railroad property a^id the capital and other property of public utilities and corporations not assessable by local assessors ; to investigate the operation of tax and revenue laws and initiate proceedings for their enforcement. The Revenue Commissioner should collect the inheritance tax and automobile licenses and such other State revenues as may hereafter be assigned. The Auditor of Public Accounts should continue his primary functions as the agent of the Legislature to maintain a current audit and control of all receipts into and payments from the State Treasury, to make settlements with collectors of revenue, and to limit expendi- tures within and for the purposes of the appropriation acts ; he should also have power to audit the accounts of State offices and institutions and of such county and other local officials as may be authorized by law. He should have power to investigate and enforce the collection or State revenues and blank forms for licenses and certificates for which fees are paid should be issued by the auditor to the fee collecting offices, as a means of auditing collections from such sources. He should also receive and submit to the Finance Commission claims re- quiring action by that body. I |(i' J- J- 182 EFFICIENCY AND ECONOMY COMMITTEE. i« if ( c J?^ r ^^]^ Treasurer should continue his functions as custodian of btate funds ; with power to deposit funds in banks. Reports as to the deposit of State funds in banks should be made and published from time to time. The State Board of Contracts should be abolished; and general contracts for printing, binding and stationery should be approved by the State Comptroller. Responsibility for executing such contracts should be concentrated in a Superintendent of Printing. Local Administration. To secure a thoroughly efficient local assessment and collection ot taxes, township assessors and collectors should be abolished and Xl'LJ'TT^ ^""r- ^"^ ?""*y °^'^'^- ^"t as a comprehensive change of this kind is perhaps not possible at once, there should at least be an optiona law, under which any county or township may by popular vote abolish township assessors and collectors, and place their Z''''^ '"l .^ ^^""^^ ^/ ''''""^y ^^^^^^- I" the smaller counties (those of the first class), the county clerk could act as county assessor. In other counties, a county assessor should be appointed by the county .m/k 'i'^f k ^^ the approval of the Finance Commission! and remov- able by that body. County Treasurers should act as collectors. Any ilT^!!IF f " "^ ^['\^^ authorized to abolish its township assessor and collector, in which case the county clerk and treasurer should act —as is now authorized for townships over 50,000 population 1 he commissions paid to collectors of taxes should be revised • and should be graded according to the amount of collections by each collector, instead of at a uniform rate for all collectors in each county Ihe extension of taxes in detail for each taxing authority against each person or piece of real estate should not be required; and with he reduction of this uneccessary clerical work, the fees for extending taxes should be reduced. t^iiumg f. t ""T^^ ^''^'"l ""^ taxation should be organized in each county laHd tf IfT"";*^ ^''^ -^ of review of assessments, and to pass on the count? Thic\l^''J'l''',i°' '^^ '^^f'"'^ *^^^"^ authorities in the rZl^' /.u u""?'"^ '^^y^l ^"""'^'^ ^^ t^^ ^«""ty assessor, county as [ts kgal advtser™^" ''''""^^ ^''^''^' "^'^^ ^^^ '^^^^'' attorney frnuf^r'^LT''^^ ^^"".""l^ u^ authorized to provide for a county con- .rrr^^T'^T, "^u"^"^ ,^^ ""^"^^ ^^^ ^^^ ^"^^^ of couuty officers' iZTrVwVu" 't '^^'^'^ ""^ir^' ^^^^^^ ^"^ '^'''' bondsmen from turther liability after a reasonable period following such audit. Results to be Expected. The most important results to be looked for from a more efficient finance administration are in improved methods of assessment and of revenue collection and in a more thorough control over appropriations by means of a carefully prepared budget. A more efficient system of assessment and a more thorough collection of revenue will bring in larger revenues, and enable a reduction to be made in the tax rates An adequate budget system will make possible a better check on unnece- REVENUE AND FINANCE. 183 sary appropriations, and thus tend to keep down the expenditures as a whole. The amount of the financial gains and savings by these means cannot be stated in exact terms; but even a small percentage on the total amount of the financial transactions of the State will amount to a million dollars or more. As to the direct State expenditures for finance administration, the amounts now paid to the State board of equalization and the court of claims will cover the salaries of the proposed State Finance Com- mission, and provide for a larger force of clerks and assistants than are now used ; though an increase beyond this may be needed to secure the most efficient results. The centralization of the administration of the inheritance tax should lead to a large reduction from the present expenses of collection, which may be roughly estimated at not less than $100,000 a year. A revision of the fees for the extension and collection of property taxes would lead to a large saving; and as the optional provisions for county assessment and collection of taxes are adopted, there will not only be increased efficiency but a direct reduc- tion in the local expenses for these purposes. The following estimate is presented of possible annual savings to the State Treasury which may be expected from the recommendations in this report : Annual Estimated n u . > r^ o ^ Expense Reduction Collectors Commissions on State Taxes $ 300,000 $ 50,000 Other Abatements on State Taxes 500,000 100000 Interest on Tax Collections 250^000 20o!oOO Inheritance Tax expenses 225,000 100,000 Automobile Fees expenses 100 000 50 000 Printing and Binding '.'.'.'.'.'.'.'. 250,'000 50^000 Totals $1,625,000 $550,000 In addition, the various local authorities should save about $1,000,000 in collectors' commissions, other abatements and fees for extending taxes. • ! j i '■' i\, I! A REPORT ON THE ACCOUNTS OF THE STATE OF ILLINOIS BY GEORGE E. FRAZER, C. P. A. Si! 15 ■ 1 1 'I I, ' ' I .11 I.J CONTENTS Page 189-190 r Introduction ' I, The Present Accounts of the State of Illinois 191-221 A. Constitutional Provisions ^^ Jni Historical Note J^J Legislative Control J^^ Financial Administration J^Z Extent of Constitutional Provisions 193 B. Legislative Procedure ^^ loc Appropriation Acts ^"^ C. Statutory Provisions for Auditing and Accounting 197-205 Auditor of Public Accounts J97 State Treasurer •^'^ Accounting and Auditing other than by Auditor and Treasurer . .201 Auditing Powers of Governor • • • -202 Auditing Powers of Secretary of State and State Board of Con- tracts JJI Auditing Powers of the Civil Service Commission 203 Auditing Powers of the Board of Prison Industries 204 Auditing Powers of the State Architect ,205 The Court of Claims 205 D. Accounts and Accounting Procedure in the office of the State Au- ditor 205-215 1. Revenue Procedure and Auditing ^^ orS. Accounting for the Collection of State Taxes 206 Accounting for the Collection of Inheritance Taxes 207 Collection of Revenue other than for Taxes 207 "Receipt Book and Receipt Ledger" 207 Auditing of Receipts 208 Cash Audits - 209 2. Disbursement Procedure and Auditing 209-213 Appropriation Ledgers 210 ' Auditing of Disbursements 211 3. Classification of Receipts and Disbursement Accounts 213 4. Perpetual Inventory 214 5. Reports 215 E. Accounts and Accounting Procedure in the Office of the State Treasurer 216—220 Register of Warrants .^ 216 Accounting for Cash Received 216 Accounting Procedure for Disbursements 217 "Cash Ledger** ^ 217 Local Bond Cash Transactions 217 Monthly Reports of the Treasurer 219 State Depositaries 219 Biennial Report of the Treasurer 220 F. Conclusions 220-221 List of Forms ^ 221 ■ ^ % } I- Schedule 4. Page II. Accounting Needs of the State of Illinois 222-248 Introduction !.*... 222 Auditing Requirements of the State *....*....'.,•*••.*..*.'...'.*.'..'.'.*.'!! .223 The Need for Financial Information ! .' *.*.*.'.*.*.*/.*" 224 Accounting Information Needed by Members of the General AsVembiy. ..224 Schedule 1. Statement of Budget Proposals by Funds 227 Schedule 2. Statement of Estimated Revenues for the General Revenue Fund 228 Schedule 3. Statement of Appropriation Requests from the General Revenue Fund 228 Comparison of Appropriations and Requests 229 Reports Needed by the Governor 233 Reports Needed by the State Tax Board 235 Reports Needed by the State Board of Equalization ...235 Accounts and Reports of the Auditor of Public Accounts 235 Accounting Needs of the State Treasurer 237 Accounting Needs of Revenue Collecting Agencies 237 Accounting Needs of Heads of Departments and Boards in charge of State Institutions 238 Schedule 5. Budget Proposals for the State Normal School. .. .239 Schedule 6 Department of , Free Balances in Allotments 241 Accounting Needs of Institutional and Departmental Executives 242 Accounting Needs of Employes of Departments and Institutions 243 Accounting Needs of the Public 243 A Plan of Accounting for the State 245 Constructive Accounting Work to be Done 24/ INTRODUCTION. The resolution of the Forty-eighth General Assembly creating the Efficiency and Economy Committee, provided that the committee "shall have full power and authority to investigate all departments of the State government, including all boards, bureaus and commissions which have been created by the General Assembly, such investigation to be made with a view of securing a more perfect system of accounting, combining and centralizing the duties of the various departments, abolishing such as are useless and securing for the State of Illinois such reorganization that will promote greater efficiency and greater economy in her various branches of government." After its organization, the committee gave careful consideration to the work possible of performance under this resolution before the meeting of the Forty-ninth General Assembly, especially with regard to the sum appropriated by the General Assembly for its investigation. The committee was of the opinion that its energies and funds could best be expended on the consideration of a plan for the reorganization of the administrative work of the State. It recognized the importance of scientific and adequate accounting, and the desirability of providing a permanent constructive accounting authority to prepare adequate accounts for the use of State officers. But it was believed that any system of accounts could do no more than reflect the organization of the State, and that major results towards efficiency and economy could best be secured by a reorganization and consolidation of the greatly elaborated system of administrative bureaus, offices and departments. The present accounting system of the State is inadequate, and constructive accounting is imperatively needed. This report presents an outline of the present accounting methods, and of the accounting needs of the State. In a separate report, there is presented an illus- tration of an adequate accounting system in the form of a proposed system of accounts for the State penal institutions. The report prepared by George E. Frazer, C. P. A., on the present accounting system of the State was made for the use of the conirnittee, to the end that the present accounting methods might be liad in mind in planning reorganization of various State activities. The report is now published because it gives in brief and readable form a summary of tlie accounting that now obtains for the State. Mr. Frazer has also prepared a brief statement of the accounting needs of the State, which is submitted herewith, with the recommendation that pro- vision be made for a program of constructive accounting work, and especially for a scientific State budget and control over the obligations incurred by departments and institutions that must subsequently be met from State funds. if il'8 ' ♦ ' i 190 EFFICIENCY AND ECONOMY COMMITTEE. i Professor Spurgeon Bell, of the University of Texas, has prepared for the committee a report outHning a comprehensive system of ac- counts for the penal institutions of the State, with special reference to the financial control of penal institutions under the proposed board of prison administration. These reports taken together will serve to acquaint the members of the General Assembly and the citizens of the State with the account- ing needs of the State, and with the results that may be expected if an adequate system of State accounting is provided. The reports do not present a system of accounts for the State, since such a system of accounts as the State needs can be prepared and installed only after a careful and detailed analysis of all of the financial transactions of the State, of the organization of the State, and of the functions of each of the State departments and institutions. Such an accounting and finan- cial study is needed, and provision should be made for it. John A. Fairlie. I . REPORT ON ACCOUNTS. 191 1. THE PRESENT ACCOUNTS OF THE STATE OF ILLINOIS. A. CONSTITUTIONAL PROVISIONS. Historical Note. Article II of the first State Constitution contained two sections relating to appropriations and expenditures, as follows : Sec. 20. No money shall be drawn from the treasury but in consequence of appropriations made by law. Sec. 21. An accurate statement of the receipts and expenditures of the public money shall be attached to and published with the laws, at the rising of each session of the General Assembly. In the second State Constitution, the above provisions were con- tinued and combined in Section 26 of Article III. Another section of the same article added the following: Sec. 22. Bills making appropriations for the pay of members and of- tkers of the General Assembly, and for the salaries of the officers of the government shall not contain any provision on any other subject. The Constitution of 1870 continued the first and third of the fore- going provisions, and further elaborated the requirements and restric- tions relating to appropriations and loans. Legislative Control. Under the Constitution of 1870, the General Assembly is given control over the finances of the State. Section 18 of Article IV provides that each General Assembly shall provide for the ordinary and con- tingent expenses of the various departments of the State by making appropriations for the period ending with the first quarter after the adjournment of the next regular session of the General Assembly. In order that the General Assembly may be provided with informa- tion as a basis for the making of appropriations it is provided, in Sec- tion 21 of Article V, that all public officers and departments shall report to the Governor at least ten days preceding each regular session of" the General Assembly ; and that '*the Governor may at any time require information in writing, under oath, from the officers of the executive department ;" and, in Section 7 of Article V, that the Governor shall present at the commencement of each session of the General Assembly estimates of the amount of money required to be raised by taxation for all purposes.'' Section 10 of Article IX of the Constitution provides: the General Assembly shall provide such revenue as may be needed by levying a tax, by valuation, "on real and personal property, and by levying fees for licenses, franchises, and privileges. ^^ It is provided in Section 18 of Article 4 of the Constitution that the State may, to meet casual deficits or failures in revenue, contract aebts," never to exceed $250,000. The Constitution does not provide 111 [itf If ' !!f 192 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 193 I'm ill how any debt may be contracted, and the matter of arranging for the S?. •^'"."fo°^''r-u* '' '^'^^ ^y '"f^"-^"^^ to the General Assembfy (See rfr ^89 °f. Chapter 120 of the Revised Statutes, empowering the Governor Auditor, and Treasurer, under certain circumstances to negotiate loans to the extent of $250,000.) tircumstanccs, to sl,.l/'n!!tf " '^" ^^^ constitution of Illinois.providcs that the Governor ref.rTi A '■^<=°?^™t"dat.ons to- the General Assembly; and that the fv h. L^!'""'''/ '•'"" '■^•'". '■"^'""^' ^"<1 ^""f*! Public expenditures by the passmg of appropriation laws. Limitations are, however, imposed on the General Assemblv in The govermnent slSl conLf "'"""^ ?"'' ^°' "« '^'^"« °f «he officers o uic government shall contain no provision on any other subject Under Section 19 of Article IV, it is provided that : tion.'^fee^oy'aIlL1"cr?o'anv''n,?h7" r"" °' ""'"""^^ «'™ ^""-Pensa- after service haHeen rende^e'rf ^.r L'" °"i'": '^T' ""^*"' '"■ contractor. Section 20 of A ; - le I V provides that • Financial Administration. colleS rf ^=Ld^rdSr2mtt SSdr^df^Le; fpp^^ pna ions ,s placed by the Constitution in the hands of the Auditor of ■ IV IL '^-"k"*' '"'' '^'.^'^'^ Treasurer. Under Sec° on 17 o VticI IV the disbursement of public funds is dependent on an anoronr ! ation that is passed by the General Assemb^. and on the presenta- lon of a warrant issued by the Auditor of Public Account The he A^K^or wit' "'TP "'I ""''r^ °' ^<^'^°""t« '" th°t it requires he cltZ A Ki'^^'r ^^y' ''^^^' ^^^ adjournment of each session of the General Assembly to "prepare and publish a full statement of al' moneys expended at such session, specifying the amount of each ° em and to whom and for what paid." In Section 7 of Article Tx o the £r d'Se'i - ^t:i s^su^- ■-■^^ ^- S-- p-p- - the l"ul;fo? k^k^SuL^L^d^h^St"; JhlKl^elt'S State Capitol during their term of office, and "keep the public records, books and papers there, and shall perform such duties as may be pre- scribed by law." The Constitution apparently contemplates that all departments and institutions of the State government shall be subject to the auditing powers of the Auditor of Public Accounts ; but it does not concentrate all of the accounting responsibility in his office, and indeed it distinctly provides that the Governor is to account directly to the General Assembly for all funds subject to his order. (Section 7 of Article V.) Extent of Constitutional Provisions, It will be seen that the Constitution of 1870 provides, either directly or by inference, for practically all of the processes of governmental accounting. In the first place, the Constitution itself provides for a complete State budget in that : A All State officers and institutions are required to make reports in the form prescribed by the Governor at least ten days preceding each regular session of the General Assembly, and the Governor may specifically require reports as to financial condition. (Section 21 of Article V.) B At the commencement of each regular session, the Governor is required to present a report to the General Assembly, summarizing the condition of State departments and institutions, and including an estimate of the money required to be raised by taxation for all purposes. (Section 7 of Article V.) C The General Assembly is required to provide necessary revenue by the levying of taxes and fees (Section 1 of Article IX), and to pro- vide for the proper disbursement of public funds by the passage of appropriation laws covering all expenses for the period ending with the first quarter after the next General Assembly. (Section' 18 of Article IV.) D It is specifically provided that contract debts of the State shall never exceed $250,000, except in time of war or invasion (Section 18 of Article IV), and that the State of Illinois shall never be made de- fendant in any court of law or equity. (Section 26 of Article IV.) A careful study of the Constitutional provisions will show that the present Constitution provides complete powers and the necessary machinery for the installation in the State government of a scientific budget system. The Constitution also specifically provides for the enforcement of budget control by the Auditor of Public Accounts, and for the safe keepmg of public funds by the State Treasurer. The General Assembly 's given power to pass laws providing for the necessary financial pro- [^edure in the office of the State Auditor and in the office of the State 1 reasurer. While the Constitution makes necessary the keeping of accurate revenue and appropriation accounts it is silent as to the keeping of accounts showing the detailed cost of each of the activities of the vari- ous State departments. It may, however, be safely assumed that the neads of departments cannot fully comply with the Constitutional re- m 'H^i 194 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 195 i;' i v quirement as to biennial reports to the Governor and that the Governor cannot fully comply with the Constitutional requirement as to the char- acter of his biennial message to the Legislature, unless there is a complete system of cost accounting for each of the State offices and institutions. • The Constitution is silent as to the keeping of such accounts, either in the office of the State Auditor or elsewhere, as will show the assets and liabilities of the State and of its several departments. The Con- stitution does require that the contract debts of the State shall never exceed the sum of $250,000. It is difficult to see how this provision of the Constitution can be enforced unless an account is kept in each of the State departments and institutions of the outstanding contract obligations of that department or institution. To summarize, it may be said that the Constitution authorizes the General Assembly to pass laws requiring the executive officers, or any one of them, to keep : A. Revenue accounts. B. Appropriations accounts. C. Cost accounts. D. Asset and liability accounts. B. LEGISLATIVE PROCEDURE. Up to the present time, there has been little or no preliminary work before the meeting of the General Assembly in compiling and analyzing the estimates and requests for appropriations. Estimates and proposed bills have been prepared beforehand by the various officers, depart- ments and institutions; and a long list of appropriation bills are in- troduced by individual members. Since the creation of the Board of Administration, estimates for the charitable institutions are prepared by this board, and the amounts recommended are included in two bills — one for ordinary expenses and one for special appropriations — each of these bills covering all the charitable institutions. Separate bills are introduced for each of the other public institutions and for some of the other State offices and departments; and a large number of the offices and bureaus submit their requests to the Appropriation Com- mittee, to be included in the, so-called omnibus bill for the ordinary and contingent expenses of the State government. After the session of 1913 had begun, a compilation of appropriation bills was prepared, with comparative figures showing the appropriations made two years before. But this contained no data as to the expendi- tures and unexpended balances ; while the various items showed a wide variation in the form and detail of the proposed appropriations for the different offices, departments and institutions. The Act of 1913 creating a Legislative Reference Bureau requires this bureau to prepare a detailed budget of prop"osed appropriations. It is made the duty of the bureau : Sec. Sd. To cause to be prepared, printed and distributed for the use of the members of the General Assembly, a detailed budget of the appro- priations which the officers of the several departments of the State govern- ment report to it are required for their several departments for the biennium for which appropriations are to be made by the next General Assembly, together with a comparative statement of the appropriations by the preceding General Assembly for the same purpose. Sec. 6. The officers of the several departments of the State govern- ment shall make duplicate reports by the 1st day of November next pre- ceding the convening of the next regular session of the General Assembly of the appropriations which are required for their several departments for the biennium for which appropriations are to be made by such General Assembly. One of said duplicate reports shall be filed with the Governor and the other with the secretary of said Reference Bureau. These provisions form the first step towards the preparation of a preliminary budget of estimates of appropriations. Byt it should be noted- that the proposed budget will be simply a compilation of the estimates of the several departments; that there is no provision re- quiring these estimates to be prepared on a uniform or systematic plan ; and that there is no provision for including a statement of expenditures to compare with the previous and proposed appropriations. There may also be some doubt as to how comprehensive this compilation of estimates will be. Does the phrase "departments of State government" include the State institutions and elective officers, or is it limited to those officers and bureaus whose appropriations are included in the omnibus bill? Each house of the General Assembly provides for a committee to which^ appropriation bills are referred. The membership of these committees is large — the House Committee on Appropriations in the Forty-eighth General Assembly had fortv-four (44) members, and the Senate committee had thirty-seven (37) members. There are also several other committees dealing with financial measures — on claims, continsfent expenses and on revenue. Upon the organization of the Appropriation Committee, sub- committees are appointed bv the chairman to visit, each of the State institutions, and report to the full committee. Joint hearin;^s of the appropriation committees are held, at which the' heads of the various institutions appear to explain and urs^e their requests for appropriations. After these hearines. the committees nass on the various bills, and pre- pare the omnibus bill, making: such changes as are ag-reed to. With the exception of deficiencv and emersfencv apnropriation^;. the appronriation bills are not reported to the house until neariv the close of the session. At this sta.ee. the chairmen of the committee*; are said to have practical control of the appropriations : the committee recommendations are rarely chanpfed in either house. Tf change*! are jnade in one house and not accepted by the other, the bill ?oes to a con- ference committee, whose report is almost invariably accented. After passing both houses, appropriation bills ^o to the Governor, who may disapprove anv of these bills or any item in any of them, within ten days. A considerable number of appropriations are reg-ulariv nisapproved by the Governor, and the ag^gregate appropriations reduced. "Appropriation Acts, The absence of any comprehensive preliminarv estimates and the jiumerous bills introduced are reflected in the appronriation Acts as passed. In the session of 1913 there were 94 separate appropriation \\l\ PiM- ll^'^ *' 11 i I 196 EFFICIENCY AND ECONOMY COMMITTEE. Acts passed, covering 116 pages in the volume of session laws. Some of the^ leading characteristics of these measures may be noted in the following summary: SUMMARY OF APPROPRIATION ACTS— 1913 Ordinary and contingent expenses of the State gov- ernment (omnibus bill) — State school fund $6,000,000.00 Other items (96 paragraphs) 5,863,825.24 $11,863,825.24 Pay of members of 49th General Assembly and sal- aries of State officers, no items 2,600,000.00 Charitable institutions — Ordinary expenses, 6 items $7,904,637.42 Special appropriations, 131 items 2,636,405.47 Reappropriations 615,408.57 11,156,451.46 University of Illinois, 4 items $4,500,000.00 University of Illinois, U. S. grants 100,000.00 XT I t. I „ . ' 4,600.000.00 Normal schools, 33 items U35,500.00 Penal and reformatory institutions — Five bills $1,489,150.00 Reappropriations -. 57,859.44 1 547 009 44 National Guard, 9 bills $1,431,655.12 Reappropriations 318,090.53 w 1, r ' ' A uMi 1.749.745.65 Highway Commission, 4 bills 1,107,500.00 "JJ^ta^ ??„ hills • $35,860,031.79 Other bills 2,055,326.14 Grand total $37,915,357.93 ^ The various Acts offer the most startling contrasts in the extent to which appropriations are itemized. That for'^the pay of members of the General Assembly and the salary of State officers appropriates $2,600,- 000 in one sum. The amounts paid to each person is regulated by the salaries provided in the various statutes; but the appropriation bill does not show the amount for each office, not even the totals for the General Assembly, the executive officers or the judiciary. The appro- priation for ordinary expenses of the charitable institutions ($7,904,- 637.42) is made in six items, three for each year; and the appropria- tion for the state University ($4,500,000) is made in four items, two for each year. On the other hand, the omnibus bill, while including the school grant of $6,000,000 in two items, appropriates about the same sum in 96 paragraphs, most of which are itemized in detail. The special ap- propriations for charitable institutions are specified in 131 items. besides a number of reappropriations of unexpended balances, not specified in the Act. The appropriations for the five normal schools are included in one Act, with 33 items. But the appropriations for the penitentiaries and reformatory are in five separate Acts; those for the Highwav Com- mission are in four Acts; and those for the National Guard are in REPORT ON ACCOUNTS. 197 nine Acts. Several of these bills include provisions for the reappro- priation of unexpended balances of former appropriations, the amounts of which are not specified. Much the larger part of the appropriations are included in 23 Acts ; while 71 other Acts make separate appropriations aggregating about $? 000,000. One appropriation Act for sewer improvements at Ottawa is^for $286.50. The entire list of appropriations covers about 1,500 separate items; but there is the widest variation in the character of the items. While in a number of cases, several million dollars are appropriated as one item; in many other cases, the amounts for salaries and expenses are specified in minute detail. Thus the appropriation for the Grain In- spection Department includes such items as $75 a year for rubber stamps, $50 a year for inspection pans, $50 a year for steel bars, and $75 a year for twine; the appropriation for the State Board of Ex- aminers of Barbers includes an item of $60 a year for the secretary's bond; and the appropriation for awards made by the Court of Claims includes an item of $7.90. This minute specification of minor items serves no useful purpose : while the mass of such details makes more difficult an understanding of the purposes of the appropriations. On the other hand, the large lump sum appropriations practically transfer the real work of appro- priation to the managing boards of the departments or institutions. The appropriations for each office or institution should be made on the same general plan, showing separately the amounts for salaries, for other current expenses, and for land and permanent improvements, with specifications of the more important items under each of these main divisions. C. STATUTORY PROVISIONS FOR AUDITING AND ACCOUNTING. The General Assembly has provided accounting and auditing pro- cedure both in general laws and in provisions in appropriation accounts. Auditor of Public Accounts. In Section 7 of Chapter 15 of the Revised Statutes,* the auditing and accounting procedure to be employed by the Auditor of Public Acounts Is very specifically set forth. The Auditor is required to audit all accounts of public officers who are to be paid out of the State treasury, of the members of the Legislature, and all persons authorized to receive money out of the treasury, by virtue of any appropriation inade or to be made by law particularly autho zing such account." The Auditor is further required, under Section /, to keep the accounts of the State "with any State or Territory, and with the United States, With all public officers, corporations and individuals, having accounts •^ io^^^^ State." This wide sweeping statement of duties was passed m 1845, and has not since been amended. ^^ It !s further specifically provided in Section 8 of Chapter 15 that on ascertaining the amount due any person from the Treasury, the 2)^£itor^ shall grant his warrant on the treasury for the sum due." ^References are to Section numbers in Hurd's Revised Statutes, 1911. 198 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 199 * : i 0' ■ I Sections 9, 10 and 11 provide that a fair record shall be kept of all warrants drawn, by their nninhcrs, that the Anditor shall, in all cases, personally si^ receivable, or moneys receivable from fines, forfeits, sales, or the like. It will be noted that the statutes provide a careful auditincf pro- cedure by the requirement of the exchange of countersigned warrants and countersigned receipts between the offices of the State Auditor Cthe auditing agency of the Stntc) and the office ^>f i^^'^ Stntc Trea^nror rthe cash depositary of the State). No such auditing procedure is provided for the control of acroimts payable, nr accounts roceiv^blr. In order that the exchange of countersigned warrants and receipts may have more auditing effect, it is provided, in Section 21 of Chapter 15 that **no person shall be employed as clerk in the Auditor's office who is, at the same time, employed in any capacity in the Treasurer's oitice. As a means of enforcing the auditing duties of the State Auditor, the statutes provide that the State Auditor shall subscribe to an oath, and shall give a bond in the sum of fifty thousand dollars ($50,000) for the faithful discharge of his duties. The Governor is given the ri<^lit to require an additional bond whenever he shall deem it necessary. (Section 3 of Chapter 15.) This power vested in the Governor should seem to make hiin in a sense responsible for the character of the audit- ing and accounting in the office of the State Auditor, in so far as the proper protection of the credit and funds of the State is concerned. An important statutory provision is found in Section i of Chapter 15, requiring the Auditor "to deliver up all papers, books, records and other property appertaining to his office, whole, safe and unde faced to his successor in office." The chief public protection provided by the statutes is that found in Section 18 of Chapter 15, page 112. "The Auditor shall make out and present to the Governor, at least ten days before each regular session of the General Assembly, a report showing the amount of warrants drawn on the treasury, to whom and for what account they were drawn, and if drawn on the contingent fund, to whom and for what they were issued. He shall also, at the same time, report to the Governor the amount of money received into the treasury, stating, particularly, the source from which the same may be derived, and also a general account of all the business of his office." State Treasurer. The most important duty of the State Treasurer is that specified in Section 7 of Chapter 130: "The State Treasurer shall receive the revenues and all other public moneys of the State, and all moneys authorized by law to be paid to him, and safely keep the same." In Section 22 of Chapter 130, approved March 7, 1908, it is the duty of the State Treasurer to "deposit all moneys received by him on account of the State within five days after receiving same in such banks in the cities of the State as in the opinion of the Treasurer are secure and which shall pay the highest rate of interest to the State for such deposits. The money so deposited shall be placed to the account of the State Treasurer." In addition to taxes, it is provided in Section 11 of Chapter 102 that certain specified officers and departments are to deposit into the State Treasury all revenues that they collect. In Sec- tion 12 of the same chapter, it is provided that all such officers and departments are "to keep in proper books a detailed itemized account of all moneys received and from what source, or sources, received," and are to report such receipts under oath to the Auditor of Public Accounts at the end of each calendar quarter. The departments specified seem to include all State departments and institutions with the exception of the State Board of Agriculture, the State University, and the State Normal Schools. In Section 24 of Chapter 130, it is specifically stated that the State Ireasurer is "personally responsible for the faithful performance of 200 EFFICIENCY AND ECONOMY COMMITTEE. ICl: his duties under the law and for a proper accounting of all moneys paid to him as State Treasurer." It appears, therefore, that it is the duty of the State Treasurer to safely keep the moneys of the State bv depositing them in banks that, in his opinion, are secure He is re- quired to select banks which "pay the highest rate of interest to the btate for such deposits. It does not appear that the State Treasurer need deposit money in a bank offering a higher rate of interest than the depositary he has already selected. It is his first duty to safely keep the funds and his second duty to secure as much interest on them froiii banks as is consistent with the security required. Section 12 of Chapter 130 provides that the State Treasurer ''shall keep regular and fair accounts of all moneys received and paid out bv or^^aid^oiTt^' Pa^t^c"^afly, on what account each amount is received The State Treasurer has no responsibilities as to the auditing of warrants for disbursements. Under Section 11 of Chapter 130 lie is required to countersign any warrant that is presented him 'to be countersigned, and to keep a record of it. Auditing protection is afforded in the requirement of Section 13 of Chapter 130 that warrants shall be cancelled by cutting or perforation and by the requirement of Section 14 of Chapter 130 that the Treasurer shall ''at the close of each month, report to the Auditor the amount of money received and paid out by him durmg the month, stating on what account the same was received and paid; and shall, at the same time, deposit with the Auditor all warrants, properly cancelled, which he may have paid, and take the Auditors receipt for the same." Section 10 of Chapter 130 specifically places auditing responsibility }!P!f $^ Auditor rather than upon the Treasurer, by providing that Ihe Treasurer shall not pay out of the treasury any money, except upon the warrant of the Auditor." The Auditor is likewise made responsible for the auditing of all receipts of the State. Section 8 of Chapter 130 provides that the Treasurer shall be removed from his office if he receives money into the btate Treasury otherwise than upon an order from- the Auditor. Section 9 of Chapter 130 provides that the Treasurer shall issue dupli- cate receipts to persons paying money into the treasury, and that such receipts shall be counter-signed by the State Auditor. Under Section 7 of Chapter 130, the Treasurer is to receive all revenues of the State as well as all moneys. This section provides for the deposit with the Treasurer of bonds and other credits owned by the State As an auditing protection, it is provided in Section 17 of Chapter 130, that "every United States or other bond now in the State treasury, or that may hereafter come into the treasury, shall immediately be indorsed with the words following, viz : 'Property of the State of Illinois, not transferable by the Treasurer, without the consent of the Governor indorsed thereon.' " It will be noted that the statutes provide rather complete auditing protection so far as the receipt and disbursement of money is con- cerned, and so far as the deposit of bonds and other credit papers is concerned. It is to be especially noted that bonds owned by the State REPORT ON ACCOUNTS. 201 and deposited with the Treasurer are transferable only upon the en- dorsement of the Governor. In this case, the Governor is made the auditing officer rather than the Auditor of Public Accounts. As Treasurer, the Treasurer is not required by the statutes to pro- tect the State in the disbursement of public credit. This auditing duty devolves upon a board composed of the Governor, Auditor, and Treas- urer. (Section 389 of Chapter 120.) To insure the fulfillment by the State Treasurer of his duties, he is required to take an oath upon assuming office and to deposit a bond in the penal sum of five hundred thousand dollars, conditioned for the faithful discharge of his duties. This bond is to be approved by the Governor and two justices of the Supreme Court. The Governor may require additional bonds. (Section 1 and 3 of Chapter 130.) The Treasurer is allowed the sum of five thousand dollars from the State treasury as payment on the premiums on the bonds given by him as Treasurer. (Section 23 of Chapter 130.) Under Section 6 of Chapter 130, the Governor is authorized to institute suits under the bond either against the Treasurer or against his sureties, without first ob- taining judgment against the Treasurer. As a protection, it is re- quired that the bond of the Treasurer shall be filed in the office of the Secretary of State. (Section 1 of Chapter 130.) An important protection afforded by the statutes is that found in Section 1 of Chapter 130, requiring the Treasurer "to deliver up all moneys, papers, books, records and other property appertaining to his office, whole, safe, and undefaced to his successor in office." One of the chief protections to the public as to the discharge by the Treasurer of his duties is found in the requirement of a biennial report. "He shall also make out and present to the Governor, at least ten days before each regular session of the General Assembly, a full report of all moneys by him received and paid out, and also a general account of all the business of his office." (Section 15 of Chapter 130.) Auditing and Accounting Other Than By Auditor and Treasurer, Practically all of the statutes quoted heretofore were first passed in 1845 under the Constitution of 1818, the first Constitution of the State. _ These statutes have not since been changed. The Constitutional provisions and the statutes heretofore referred to seem to contemplate that the auditing and accounting responsibilities shall be centered in the office of the State Auditor of Public Accounts. The General Assembly has, however, provided special auditing and accounting agencies for numerous classes of transactions. We have already noted that the Governor is an auditing officer with respect to the bonds of the State Auditor and the State Treasurer, and also with respect to the transfer by endorsement of bonds and other securities owned by the State. Other auditing and accounting duties have been laid by the General Assembly upon the following officers and departments: 1. Governor, exercised through the Institutional and Depart- mental Auditor. 2. Secretary of State and State Board of Contracts. 3. Civil Service Commission. i ! i 1 1' . ■ i >. . 202 EFFICIENCY AND ECONOMY COMMITTEE. 4. Board of Prison Industries, as to the purchase of furniture and other supplies. 5. State Architect, as to building transactions. Auditing Powers of Governor. The auditing powers of the Auditor of Public Accounts have been supplemented in the case of most of the appropriation Acts made for the support of the executive departments by the requirement that the Governor shall approve bills for traveling expenses, pay rolls, and, indeed, all bills submitted to the Auditor as charges against such ap- propriations. (See pages 119 and 120 of the session laws of 1913 for an example of the tenor of such appropriation Act provisions.) To aid the Governor in this particular, the position of Institutional and Departmental Auditor has been created. This Institutional Auditor has no authority as of his own office, but acts for the Governor. The effect of this requirement of appropriation acts that the Governor shall approve individual bills before the Auditor of Public Accounts shall pay them is to place a very considerable auditing power in the hands of the Governor, or rather in the hands of his Institutional Auditor. While, in point of law, the Auditor of Public Accounts still has the final audit, the prestige of the Governor's office is undoubtedly such as to make the approval of the Institutional Auditor in the name of the Governor practically a final audit. Section 8 of Chapter 102 of the Revised Statutes provides that "an account shall be kept by the officers of the Executive department, and of all the public institutions of the State of all money received or disbursed by them severally from all sources and for every service performed, and a semi-annual report thereof be made to the Governor of the State under oath." This semi-annual report must be made in the form prescribed by the Governor. This requirement gives the Governor a very real power in the prescription of accounting systems for executive departments and institutions, inasmuch as he may require a report in such form as to make necessary the keeping of certain prescribed accounts. It may be well to add that this power of the Governor has never been exercised, other than to require institutions to report in detail receipts and disbursements classified only as to ap- propriation Acts. Auditing Powers of Secretary of State and State Board of Contracts. Under Section 5 of Chapter 124 of the Revised Statutes, the Sec- retary of State is given control over the office space in the State Capitol Building, over the furniture in the State House, and is required to furnish office supplies to his own office and to the Governor, Treasurer, Auditor, Superintendent of Public Instruction, and Attorney General. The same provision is applied to other offices by the statutes creating them. It has been customary to appropriate a sum of money to the Secre- tary of State out of which supplies are purchased for the use of the various executive departments. It has been customary to appropriate such sums to the Secretary of State as may be necessary to maintain REPORT ON ACCOUNTS. 203 the State House and to keep it lighted and heated. (See paragraph 8 on page 97 of the session laws of 1913 for example of such an appro- priation.) The actual purchase of stationery and printing is done by the Secretary of State, under contracts awarded by a commission on State contracts, composed of the Attorney General, Secretary of State, State Treasurer, and the Auditor of Public Accounts. (Chapter 127, Re- vised Statutes.) To aid this Commission on Contracts in the handling of State printing, an officer is appointed, known as Printer Expert. (Section 21 of Chapter 127.) The Printer Expert is presumed to enforce the contracts of the Commission on Contracts. The Printer Expert is supervised by the Secretary of State (Section 22 of Chapter 127), and is required to audit all printing bills. (Section 23 of Chap- ter 127.) It will be seen that the Secretary of State has a considerable audit- ing power, using the term in a broad sense, in the service that he is required to perform for other State officers. The Secretary of State through the Printer Expert, has practically final auditing power, in so far as paying of bills for State printing is concerned. To be sure. Section 23 of Chapter 127 provides that a contractor for State printing may carry a bill, disapproved by the Printer Expert, to the Commission on Contracts, and that the Commission on Contracts shall have final power to adjudicate such a disputed bill. In this limited number of cases, the Auditor of Public Accounts has some direct auditing power over printing bills, in so far as he is ex officio a member of the Com- mission on Contracts. For all practical purposes, it mav be said that the Printer Expert is the auditor of State printing bills! The appro- priation made in 1913 for State printing and binding rinchiding paper and the State Blue Book) amounted in all to $347,300. (See Sections i^, 16 and 17 on page 98 of the session laws of 1913.) /ludtting Powers of the Civil Serince Commission. Under Chapter 24a of the Revised Statutes, the Civil Service commission is given very large auditing powers over the emplovment nl T'^?."^' ^i ^^^ ^^^^^- Under Section 11 of Chapter 24a this power ot the Livil Service Commission extends to all persons on the pay roll ot the State excepting elective officers ; officers, boards and commis- sions appointed by the Governor subject to confirmation bv the Senate- omcers and employees of the Legislature ; judges and officers of the court ; employees of the State military service : instructional staflF of tne btate University and Normal Schools ; employees' at the executive o/r^*^ v' attorneys ; building and loan and bank examiners ; officers 1 ^"aritable correctional and penal institutions ; one private secretary or stenographer in the elective offices and offices of the president, dean 01 men and dean of women of the University of Illinois, and in the ZT^ o* the presidents of the Normal schools; all clerks and watch- nf Tir" . , ^^ °^ elective officers ; and students at the University or Illinois and the Normal Schools. While the exemptions to Civil rJnr^* Requirements appear to be numerous in eflFect a very laree per suh w! . employees of the State are in the classified service and hence "oject to the auditing power of the Civil Service Commi; r • '■ i 1 'I ission. : 'I: ;"'i 1 204 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 205 |v '^ I Under Sections 27 to 31 inclusive, of Chapter 24a, it is provided that the State Audifor and the State Treasurer shall pay salaries for the services of any person employed in the classified service of the State only upon certification by the Civil Service Commission that the em- ployees named "have been appointed, or employed, or promoted in pursuance of law and of the rules made in pursuance of this Act." ^ It is interesting to note that under the caption of ''Auditin^^ Officer," Section 27 of Chapter 24a provides that the Governor shall not approve any voucher for any claim of any public officer for the services of any person employed in the classified service of the State in violation of the provisions of this Act." This Section 27 is a frank statem'ent of the auditing powers of the Governor. Auditing Powers of the Board of Prison Industries. Under Sections 75 to 102 of Chapter 108 of the Revised Statutes, the Commissioners of the Illinois State Penitentiary at Joliet, the Commissioners of the Southern Illinois Penitentiary at Chester, and the Board of Managers of the Illinois State Reformatory at Pontiac arc created a Board of Prison Industries. This board is given very sweep- ing powers to manufacture by convict labor in the penitentiaries and reformatories all articles that may be required for State use. State officers and State institutions are required to purchase such articles from the Board of Prison Industries as the Board of Prison Industries may cause to be manufactured and offered for sale. "No articles so manufactured shall be purchased from any other source for the State or public institutions of the State, unless said Board of Prison Indus- tries of Illinois shall certify that the same cannot be furnished. . . . and no claim therefore shall be audited or paid without such certificate." It will be seen that the Auditor of Public Accounts is not author- ized to draw his warrant in payment for supplies purchased from com- mercial vendors, if it shall appear that such supplies are manufactured and sold by the Board of Prison Industries, and if it shall appear that the Board of Prison Industries has not certified that the particular sup- plies, covered by the bill for which the warrant is drawn, cannot be furnished from the prison industries. The President of the Board of Prison Industries of Illinois, the President of the State Board of Administration and the Auditor of Public Accounts of Illinois are created a Board of Classification under Section 90 of Chapter 108, and, a? such, are required to fix the pricc^ for all products furnished to vState departments and institutions by the Board of Prison Industries-. It will be seen that the Board of Prison Industries and, particii larly, the Board of Classification have a very considerable financir'l control over State departments and institutions in that such deoart- ments must buy supplies from the Board of Prison Industries at tlie prices fixed by the Board of Classification. The only share of the Auditor of Public Accounts in this financial control comes in the fact that he is ex officio a member of the Board of Classification, and that, under Section 90 of Chapter 108, he is required to devise and furni^li a proper system of accounts for the transactions of the Board of Prison Industries. Auditing Pozvers of the State Architect. Under Sections 13 to 17 inclusive, of Chapter 10a of the Revised Statutes, the Governor is empowered to appoint a State Architect of Public Buildings and Improvements. All State departments and in- stitutions are required to avail themselves of the services of the State Architect in the preparation of plans for new buildings and in the supervision of the construction of all public buildings and works. For this service, the departments and institutions are required to pay to the State Architect a commission of two and one-half per cent of the cost of the work. Nothing is said in the sections creating the office of State Architect and defining the duties of that officer as to his auditing powers. It is the evident intent of the law, however, that the State Architect shall be responsible for the honesty and efficiency of the plans and the con- struction work on public buildings. While the Auditor of Public Ac- counts remains the financial auditor in connection with the payment of bills on account of the construction of public buildings, it would seem that the State Architect bears the responsibility as to the actual worth of the materials and services represented by such bills. The Court of Claims. All claims disputed by the officers in charge of executive depart- ments and State institutions, or disallowed by the State Auditor may be brought for final adjudication before a Court of Claims created by Sections 331 to 341 inclusive, of Chapter 37 of the Revised Statutes. This Court of Claims consists of three judges appointed by the Gov- ernor. The Auditor of Public Accounts is ex officio clerk of this court. Claims allowed by the Court are reported by the Auditor to the Gov- ernor, and by the Governor to the General Assembly. The General Assembly may or may not make appropriations covering such adjudica- tions. The action of the Court of Claims is final so far as the claimant is concerned. A bill disallowed by the State Auditor may, therefore, be brought before the Court^ of Claims and the Court of Claims by adjudication may bring the bill with their endorsement to the General Assembly \l ^^"P T^"^^. ^^^ fi"^^ auditing power in the State, therefore, rests with the Legislature. For all practical purposes, the Auditor of Public Accounts may be considered as the final auditor. Bills disallowed by mm, because of their illegitimate or iPeeal character, will seldom be revised before a Court of Claims of which the Auditor is ex officio cierk. The legislative intent in creatins^ the Court of Claims seems to nave been the provision of a judicial body for the settlement of ex- traordinary claims, such as claims for personal injuries alleged to have f^een received in the public service of the State. D. ACCOUNTS AND ACCOUNTING PROCEDURE IN THE OFFICE OF THE ' STATE AUDITOR. 1. Revenue Procedure and Auditing'. tioii ( \".^[*°^ o^ P^b^ic Accounts and the State Board of Equaliza- "n, ot which the Auditor is usually chairman, maintain a compre- 1 : ] i 1 i' ; .1 i 1 li 206 EFFICIENCY AND ECONOMY COMMITTEE. I! f hensive procedure in the determination of valuations for the purpose of State taxation. A description of that procedure is not given here. Accounting for the Collection of State Taxes, The county clerk of each county in the State is required to make an annual report of the total valuation of property listed for taxation in his county, and of the taxes charged thereon, including taxes due for previous years. The form of this report is prescribed by the State Auditor. (See form 1.)^ This statement of valuation and taxes is made up by the county clerk from the report of equalized valuation made out by the State Board of Equalization. The report of the State Board of Equalization is based upon the local assessments as corrected by the County Board of Review. The amount due from the county on taxes is computed by the county clerk by applying the State rates fixed by the Board of Equalization to the valuations agreed upon by the State Board of Equalization. The county clerk is notified* of the rate of taxation on account of general State purposes, State school purposes, and the University of Illinois Mill Tax Fund, by a circular letter sent out by the State Auditor. (See form 2.) The valuation and taxes reported by county clerks are entered by the revenue clerk in the office of the State Auditor in a bound book entitled "revenue book by collectors of counties." This book has the following columns: /. Date 2. Item J. Valuation 4. Revenue 5. School 6. University 7. Total The "revenue book" has the same columns on both the debit and credit sides. When taxes have been received by the county treasurer (who is ex officio county collector), they are paid into the county treasury and the county treasurer comes to the office of the State Auditor in person for the purpose of making tax settlement. The county treasurer brings with him a statement of the account of the county collector. (See form 3.) This statement on the debit side gives the same information as to taxes receivable as is contained in the report of the county clerk shown in form 1, and as has been posted in the debit side of the account of the county in the "revenue book." The county collector's statement shows on the credit side the taxes collected and paid into the county treasury. After the information given in form 3 by the county col- lector has been compared with the information given in form 1 by the county clerk, a settlement is made and the revenue clerk in the office of the St^te Auditor makes out an order directing the State Treasurer to receiv6fcthe tax moneys from the county collector. (See form 4.) From this order and from the settlement made as shown on form 3 as to errors on real property, insolvencies and removals on personal prop- 2Forin numbers are those of the writer. REPORT ON ACCOUNTS. 207 erty, collector's commission, and collector's mileage, items are credited by the revenue clerk on the credit side of the account maintained as to each county collector in the ''revenue book." It will be seen that the "revenue book" shows on the debit side the assessed taxes charged to the county collector, and shows on the credit side the manner in which the county collector has met this re- sponsibility, either by handing over cash, or by a statement of errors, insolvencies, taxes in arrears, commissions, and mileage. The "revenue book" is, therefore, of great importance. It will be seen later that it is possible to audit the "revenue book" by comparing postings made to the account with a county collector with the account kept for the county in the "revenue ledger". Accounting for the Collection of Inheritance Taxes. Inheritance taxes are collected by county treasurers and are paid by them mto the State treasury through the office of the State Auditor. The county treasurer is required to turn over the full amount collected to the State Treasurer, less appraiser's fees, fees of county clerks, and such other expenses as may be certified to as reasonable by the county judge. On the 1st Monday of March and of September of each year, the treasurer of each county is required to report under oath the amount of inheritance tax collections. (See form 5.) The money collected must be turned over, however, as soon as it is received by the county treasurer. The duplicate of the .tax receipt issued by the county treas- urer must be counter-signed by the State Treasurer. (See form 6 ) When the county treasurer turns over taxes collected under the inheritance Tax Law, an order is made out by the revenue clerk in the office of the State Auditor directing the State Treasurer to receive tne money. This order is posted by the revenue clerk to a book en- titled account of receipts into the treasury" and from there to a revenue ledger. Collection of Revenue Other Than from Taxes. c;f..^?T^ '' P^'^ ^"^"^ ^^^ ^^^^^ treasury through the office of the ^tate Auditor on account of license fees, receipts from the sale of ?nm. .^".u^^"^^' ^"^ miscellaneous receipts. Such moneys usually come to the office of the State Auditor or to the office of the State rniwr''^'"' accompanied by a voucher of the department making the thl r!?."* . .^ vouchers vary in form according to the nature of the receipts transmitted. The revenue voucher forms used for mis- wf"^^"' P^'P^se^^^e designed by .the departments making the col- on H^f" f^^^f imes consist only of typewritten letters referring Under cf-?^'^,"^ ^""^ ^Y^ character of revenue that the draft covers thP ^fo! "a^ f.^^^ procedure, all such revenue should come directly to of the ^^fo^"^*""'- ^^"^%°f th,^^' however, are mailed to the office order nnn . J'cf "'^4^- ^" '^^^^' '^'^' t^^ State Auditor makes an and crZ>" . .^ 5!^^^ Treasurer directing him to receive such revenue and credit it to the revenue fund of the State. (See form 7 ) Receipt Book'' and ''Receipt Ledger." by tht^AnH-f ^' fl ur^'"!^"^ '"^"^ ^^^ St^t^ t^^^^^^y 0" orders signed «y the Auditor of Public Accounts. These orders are issued in dupli- i^ I ' ' I i. i I I I 208 EFFICIENCY AND ECONOMY COMMITTEE. cate, and from the duplicates the revenue clerk in the office of the State Auditor posts to a book entitled "account of receipts into State treasury." This book has the following columns: 1. Date. 2. Number (of order). 3. From whom. 4. County. 5. Years tax. 6. Ledger page. 7. From what bond fund. 8. Revenue. 9. School. 10. University. 11. Special. 12. Sinking fund. 13. Local bond funds. 14. Total. The entries in the "receipt book" are chronological entries, i. e., entries are made according to the consecutive numbers on receipt orders. The total in the "total" column for any day, week or month should show the receipts into the State treasury for that day, week or month. The total of the columns headed "revenue," **school," and "university" should agree with the total of the credit columns simi- larly headed in the "revenue book by collectors of counties." It will be remembered that the "revenue book by collectors of counties" con- tains an account for the collector of each county. By taking a trial balance of the "revenue," "school" and "university" credits in the accounts in the "revenue book," it should be possible for an expert book- keeper to get the same totals as appear in the "revenue," "school," and "university" columns in the book entitled "account of receipts into State treasury." While this would be a laborious process, it is mentioned here to show the adequacy of the present records from the bookkeeping standpoint. Each order is posted into the book entitled "account of receipts into State treasury." The entries there are posted into "revenue ledgers." All the entries are posted into a cash account and then are posted a second time into accounts with each fund. The total of the postings into fund accounts will equal, of course, the total of the post- ings into the cash account. Auditing of Receipts, The procedure described provides for an audit of receipts derived Equalization. Receipts derived from inheritance taxes are audited so as to strike out any deductions on account of the expenses of the county treasurer as the collector of such inheritance taxes not specifically allowed by the provisions of the Inheritance Tax Law. It must be admitted that the procedure described does not provide in itself an adequate auditing machinery as to the moneys collected by various State departments and institutions on account of licenses, REPORT ON ACCOUNTS. 209 fines, fees, departmental sales, and the like. The Legislature of 1913, however, provided a special appropriation of ten thousand dollars ($10,000) for the State Auditor to enable him to employ professional accountants to audit the original records in the various fee collecting offices of the State. Cash Audits. The Accounts of the State Auditor are periodically reconciled with the accounts of the State Treasurer. This reconciliation affords a rather complete check on the actual cash receipts and disbursements of the State Treasurer. The procedure will be described in connection with the accounting procedure of the office of the State Treasurer. 2, Disbursement Procedure and Auditing. The appropriation laws passed by the General Assembly com- monly provide that the State Auditor shall draw his warrant upon the State Treasurer in the payment of bills incurred by the various execu- tive officers, State departments and State institutions, upon receipt and audit by the State Auditor of vouchers certified to as correct by the executive officers, heads of the State departments, or officers of the State institutions. The first step, then, in the payment of money from the State treasury is taken in the office of the department that has incurred the expense that is to be paid. The officer in charge of the department, or officer of the board of trustees in charge of an institution, prepares a voucher showing the items to be paid in detail and certify to these items as correct. The various State officers, department heads, and institutional officers have devised forms of vouchers that in their opinions are suitable for their several interests. These vouchers are not uniform in size or character, and there appears to be no uniformity in the detail that the vouchers bear. The vouchers used by the Board of Trustees of the University of Illinois, samples of which are submitted herewith, will serve to illustrate the form in which bills commonly come to the attention of the office of the State Auditor. All vouchers are received by the chief warrant clerk or the assistant chief warrant clerk, who audits the vouchers to make certain that they bear the signatures of officers as required in appropriation Acts, and that the itemized accounts upon these present legitimate charges in proper form. It devolves upon these warrant clerks to see that each voucher is charged against a proper appropriation, and that no voucher IS passed against an appropriation in excess of the amount appropriated. The warrant clerks obtain this information by inspection of the appro- priation ledger, or warrant ledger, which will be described later. If all the requirements are complied with, the vouchers are stamped as being filed in the office of the Auditor of Public Accounts as of that date, and the vouchers are then distributed among the warrant clerks, who proceed to draw warrants in payment of the vouchers. ^ If there are a number of vouchers chargeable to the same appro- priation, or to the appropriatiohs made by the General Assembly to the same^^ department or institution, they are compiled on a "list of war- ^nts form. (See form 8.) This form shows the number of the 'i I i!«l« J.L 210 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 211 4 if % I f ■ i -' i .- i 1 '! warrant, to whom issued, the amount of the warrant, and to whom the warrant is to be mailed. At the top of the form the total amount of the vouchers listed is distributed as a charge against one or more appropriations. The vouchers and warrants, together with the lists, are then turned over to one of the warrant clerks, who numbers each voucher and the warrant made out for its payment with the same number. The warrant is then entered in a book known as the ''entry clerk's record book." This book shows a chronological record of warrants issued, the amount of the warrant, and the appropriation against which it is to be charged. The "entry clerk's record book" is later used as a posting medium for the "warrant ledger," the appropria- tion ledger. The warrants and vouchers are then handed to the "journal clerk," who makes a full record of the warrant on a form known as "warrant journal." (See form 9.) This form has the following columns: 1. Ledger page. 2. Date. 3. Number of warrant. 4. To whom issued. 5. For what issued. 6. Appropriation purpose. 7. Appropriation amount. 8. Total. 9. Received, or mailed to. This "warrant journal" is the official posting medium for the appro- priation ledger. Where warrants are handed out over the counter to claimants,, they are required to receipt for the warrant in the column provided for that purpose. Nearly all warrants are mailed, however, and the place to which the warrant is mailed is indicated in the column so headed. The journal clerk makes a comparison of voucher and warrant to make sure that the correct number appears on each. The vouchers are then folded and backed and are filed in the vault consecutively by numbers in document files. This inconvenient method of filing seems to be made necessary by the various sizes of vouchers used by various departments and institutions. After the warrants and vouchers have been compared, the warrants are sent to the State Treasurer to be counter-signed. The State Treasurer countersigns the warrants and registers them. They are then returned by the State Treasurer fo the office of the State Auditor. The journal clerk sorts out such warrants as are to be handled over the counter and places them in a box properly indexed for prompt distribution. The vouchers to be mailed ouf are turned over to the mail clerk, who mails them in envelopes that have been addressed by the warrant clerks at the same time that the warrants were type- written. Appropriation Ledgers, The "warrant journal" and the "entry clerk's record book" give practically the same information and are used in making charges 2. 3. ^ 4. 5 to 17, inclusive. 18. against various funds in the appropriation ledger. In the appropria- tion ledger, an account is kept with each appropriation made by the General Assembly. The appropriation ledger is known as the "warrant ledger" and has the following columns : 1. Date. Number of warrant. To whom issued. For what issued. Appropriation columns. Total. Three appropriation ledgers are maintained. One appropriation ledger contains only the accounts administered by the State Board of Admin- istration. It will be noted that thirteen (13) appropriation columns are provided in the appropriation ledger ("warrant ledger"). These columns make it possible to keep all of the appropriation accounts with one institution or department on one double page, since it seldom occurs that a single department or institution has more than thirteen appropriations. At the beginning of each year, the amounts of appropriations are entered at the head of appropriation columns. Balances are obtained from time to time by subtracting the total of charges made against an appropriation from the amount of the appropriation. Such balances are frequently indicated in red ink. If any balance remains unspent at the end of the first quarter following the adjournment of the next General Assembly after that of the General Assembly making the appropriation, such balances are "lapsed" by red ink entries indicating the expiration of the appropriation period. Auditing of Disbursements. The first auditing officers with respect to disbursements are the officers in charge of executive departments, or of institutions, whose duty it is to certify vouchers to the State Auditor for payment. While this certification may be considered to be an administrative act rather than an audit, there is much evidence to show that the officers in charge of the larger departments and institutions audit bills carefully. These officers, in fact, are the only officers who can certify as to the quantity and quality of the materials received, and the length and qualitv of the services rendered. Bills and pay rolls coming from the executive departments of the State are audited in the office of the (jovemor by the institutional auditor. In several important particulars, the institutional auditor l^ears the same auditing relationshin to such departments a<; that of the-^ Attorney General, as does the fiscal supervisor of the Board of Admin-' J'^tration to that board, and the comptroller of the Board of Trustees of the University to the University. The Auditor of Public Accounts, as an auditor of disbursements, IS concerned primarily with the auditing of bills as charges against appropriations. The Auditor of Public Accounts mav be said to be the auditing officer whose duty it is to enforce the intent of the Legisla- 212 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 213 S 1 mt ture in making an appropriation for a specific purpose. The office of the Auditor of Public Accounts is apparently alive to its responsibilities as to appropriation charges, and the procedure in the office of the Auditor of Public Accounts is adequate to protect the State against misappropriation of funds. The Auditor of Public Accounts has a second important auditing function in the reconciliation that is made between the books of the State Auditor and the books of the State Treasurer. It is the duty of the Auditor to safeguard the State with respect to the methods employed in the payment of moneys. From examination of the pro- cedure employed in the office of the Auditor of Public Accounts, it is evident that a constant audit is exercised over-the methods employed in paying out State money. While the Auditor of Public Accounts is charged by law with the final audit of disbursements in all the various aspects that such a final audit may assume, the practice seems to be for the Auditor to rely upon several agencies in several important auditing respects. It has already been noted that the Auditor relies upon the heads of departments and institutions for the auditing of materials received, both as to quality and quantity. On several occasions, the State Auditor of Public Accounts has employed professional accountants to examine the records of departments and institutions as to the accuracy of such local audits. The Auditor relies upon the Secretary of State, the State Board of Contracts, and the Printer Expert as to the auditing of the purchase and distribution of fuel, stationery, printing and office supplies to the departments housed at Springfield. TJie tenor of present statutes practically makes necessary the reliance of the Auditor upon the Printer Expert as to State printing, and the reliance of the Auditor upon the Secretary of State as to the distribution of office supplies to State departments located at Springfield. The Auditor of Public Accounts relies upon the institutional auditor in the office of the Governor as to the auditing of the pay rolls of executive departments, and upon the Civil Service Commission as to the auditing of the pay rolls of emplovees under the classified civil service. Pay rolls under the classified civil service are sent by depart- ments and institutions directly to the Civil Service Commission and are transmitted by the secretary of the Civil Service Commission to the State Auditor with the following certificate attached: "Springfield "I hereby certify that the persons named in the attached pay roll or voucher of the for the month of containing : names, of which are exempt, have been appomted or promoted to or employed in the positions or places and at the rates of compensation indicated in pursuance of Civil Service Law and the rules made m pursuance thereof as shown by the official roster. ,-. ,rt. Secretary Civil Service Commission, (rorm 10) The entries as to pay rolls made in the "warrant journal" and "warrant ledger" in the office of the Auditor contain no reference to the Civil Service Laws, excepting perhaps in particular cases. The Auditor relies upon the Board of Prison Industries for the enforcement of the statutory provisions requiring State departments and institutions to purchase such supplies as the Board of Prison Industries may manufacture. It is customary for many of the State institutions to obtain "releases" from the Board of Prison Industnes on certain articles manufactured by that Board which the institutions desire to purchase from the open market. The numbers of such "releases" are usually entered on the face of the vouchers made out by the institutions in question to the open market vendor. The entries in the "warrant journal" and "warrant ledger" in the office of the Auditor of Public Accounts contain no reference to the procedure as to, or the number of, such "releases." Apparently the Auditor of Public Accounts relies upon the State Architect for the inspection and supervision of buildings and works under construction. No procedure has been established to indicate in the records of the State Auditor that the State Architect has accepted buildings and works, or parts of the constructions thereon, at the time that payments are made to contractors: The bills of the State Architect for the two and one-half per cent commission allowed to him under State law are handled in the same manner as other vouchers. It will be seen that the office of the State Auditor confines its. audit as to disbursements in the great majority of cases to an audit of the appropriation charge and to an audit of the methods employed in the payment of money. Indirectly, the office of the Auditor exercises a very considerable and beneficial influence towards close scrutinv of vouchers and pay rolls by departmental and institutional officers. This influence is actively exercised from time to time^ and at least once during: each biennium by the employment of professional accountants to examine the records kept in departments and at institutions, and to make suggestions to the State Auditor as to possible improvements in such records. 5. Classification of Receipt and Disbursement Ac-ounts. The revenue accounts in the office of the State Auditor are classi- fied so as to distinguish between receipts from (1) State taxes on real and personal property; (2) State inheritance taxes; (3) collections by departments and institutions on account of fees, sales, etc. Re- ceipts on account of State taxes are further classified as between : a. General revenue fund. b. State school fund. c. University mill tax fund. d. Special (other) funds. A separate account is maintained with each collector. This pro- vides a classification of State taxes by counties. A similar classification '^^ provided for inheritance taxes by counties. Miscellaneous receipts f^n account of fees, sales, and the like, are classified simply by the names of the departments and institutions making the collections. Certain data as to receipts credited to the general revenue fund '!^ abstracted in the form of statistical statements. Such statements iiiay be considered as accounts. An example of such data is the state- M; I 1 I ] 1 ■ 214 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 215 ment filed in the office of the State Auditor as to the condition of the endowment fund of the University of Illinois. Other financial state- ments are prepared for the use of the General Assembly and of vari- ous State officers, and copies of such statements are to be found on file. A typical statement of this character is the "List of Qaims Against the State of Illinois" filed with the Auditor of Public Ac- counts, considered by the Court of Gaims at its session of 1908 and 1909. The disbursement accounts maintained by the Auditor of Public Accounts are classified as to State funds, i. e., the general revenue fund, the State school fund, the University mill tax fund, etc. Dis- bursements are further classified under these funds as to appropri- ation accounts. . It has been noted that the "warrant ledger" is so arranged as to show all of the appropriations made to a department or institution on a single double page. By these means, the dis- bursements on account of any institution are shown in one place in the- appropriation ledger and it may be considered that the Auditor of Public Accounts maintains a classification of disbursements by departments and institutions. This latter classification is quite in- complete as to many of the departments, for the reason that a large number of departments receive supplies, fuel, and other maintenance through appropriations made to the Secretary of State and to the State Board of Contracts. An incomplete system of accounts show- ing the^ distribution of such supplies and maintenance items is main- tained in the office of the Secretary of State, and, if taken in connec- tion with the accounts maintained in the State Auditor's office, can be made to provide a classification of disbursements by departments for the executive departments concerned. 4. Perpetual Inventory. A very interesting law was passed by the General Assembly of 1913, requiring officers in charge of departments and institutions to make inventory reports to the State Auditor of Public Accounts. (See page 6, Session Laws of 1913.) The Auditor of Public Accounts was given an appropriation of $6,500 for extra assistants in enforcing this law. (P. 7, Session Laws, 1913.) This law required every officer, board, commission, de- partment, and institution of the State government, except the Board of Administration, to file with the Auditor of Riblic Accounts, on or before September 1, 1913, "an inventory of all of the property, both real and personal, belonging to the State of Illinois under the charge, care, management, custody or control of said officer, board, commis- sion, department and institution of the State government respectively. "Such inventory shall contain a true and correct legal description of the real estate under the care, custody or control of such officer, board, commission, department and institution, and shall contain a true and correct description of all the buildings and other improvements situated on such real estate, together with a statement as to the value of such real estate and improvements. "Such inventory as to personal property shall contain an item- ized statement of all the personal property under the care, custody, control and management of such officer, board, commission, depart- ment, and institution respectively, together with the value of same." This inventory requirement was very onerous. It is presumed that the State Board of Administration was omitted from the inventory requirement because of the inventory system maintained in the office of that board at Springfield. It is understood that all other agencies of the State made some attempt to comply with the requirement. Their reports were received and placed on file in the office of the State Auditor, but the appropriation made to the Auditor was inadequate to provide him with the necessary assistants needed in the proper compilation of such reports in the form of a complete State inventory. The law of 1913 provided also that all departments and institu- tions should make an inventory report every ten days to the Auditor of Public Accounts, containing a list of * all property of every kind ac- quired, destroyed, or disposed of, since the time of the last report, together with a statement as to the value of the same. It is understood that this requirement has been disregarded for the most part. The office of the Auditor of Public Accounts is not adequately manned to take care of the great mass of detail that such reports would furnish. Moreover, the law is so broad in its requirements as to make its ful- fillment a matter of the greatest practical difficulty. For example, the officers of the University of Illinois have not been able to devise a method under which they could report, once in ten days, the exact amount of supplies consumed in that institution during the ten-day period. It may not be out of place to cite this inventory law as an exam- ple of an accounting requirement plausible in theory, but exceedingly impracticable in operation. 5. Reports. All departments and institutions, including the Auditor of Pub-* lie Accounts, are required to make a biennial report to the Governor, giving a complete statement as to receipts and disbursements. All departments and institutions are required to make a report to the Governor as to receipts and disbursements, at the close of each six months period, on April 1 and October 1, respectively. These reports are received by the institutional auditor in the office of the Governor and placed on file for the information of the Governor. The semi- annual reports of departments and institutions are accompanied by lists giving the name of each person from whom money has been received and the name of the person to whom each disbursement has been made during the six months period. The Auditor of Public Accounts has access to the reports on file in the office of the Governor and they constitute a valuable auditing check for the use of the office of the State Auditor in connection with particular cases of alleged misappropriation or fraud. It is not known to what extent the reports on file in the office of the Governor are used in this particular. ! I : I 216 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 217 I ; 1 ' If The Auditor of Public Accounts makes a report at the close of each fiscal biennium. This report, for the most part, is a transcript of the ledgers maintained in the office of the Auditor, and in addition contains numerous tables originally compiled for the use of the Board of Equalization. A feature of the report worthy of some mention is the detailed manner in which receipts into funds and disbursements from appropriations are described. For example, the first statement in the report is a "statement of receipts and disbursements of the gen- eral revenue fund." The statement of receipts into the general rev- enue fund gives a detailed list of miscellaneous receipts with such ex- planations as "from F. W. DeWolf, Acting Director of Geological Survey, for sale of bulletins,'' and "from John B. Jackson, Anna, net balance due State from ordinary and special funds of Southern Hos- pital for the Insane." In a similar way, in statement number three, a list of disbursements is given, classified under departments by appro- priation acts. The biennial report of ttte office of the Auditor of Public Ac- counts gives an adequate statement of the accounts maintained in that office. E. ACCOUNTS AND ACCOUNTING PROCEDURE IN THE OFFICE OF THE STATE TREASURER. The office of the State Treasurer is concerned with the keeping and handling of cash. It is not an auditing office. Register of Warrants. Warrants must be countersigned by the State Treasurer before they are issued by the State Auditor. At the time that warrants are received in the office of the State Treasurer for countersignature, they are registered consecutively by numbers in a "warrant register." This "warrant register" gives the date and number of the warrant, the name of the payee, and the amount. The "warrant register" main- tained by the State Treasurer is checked periodically with the "war- rant journal" maintained in the office of the State Auditor. Accounting for Cash Received. All cash received into the State treasury is officially received on an order issued by the State Auditor. (See form 4 as an illustration of such an order.) The amount received is posted to a "cash book" having the following columns. 1. Date. 2. Order number. 3. Description. 4. Items amount. 5. Totals amount. Receipts are, of course, posted to the debit side of the "cash book." The office of the State Treasurer makes no audit as to moneys re- ceived excepting to inquire as to the character of commercial paper such as checks and drafts, when presented as a payment into the treasury. Accounting Procedure for Disbursements. The cashier in the office of the State Treasurer maintains a "cash book" in which are listed canceled warrants as they are received. (See form 11.) Canceled warrants usually come to the office of the State Treasurer from banks. It is customary for the cashier to enter war- rants received from a given bank in his "cash book" in a group of entries with the name of the bank written in as a sub-heading. A separate sheet in the cashier's "cash book" is maintained for each day's business. This enables the cashier to trace the total paid war- rants handed to him by any bank on any given date. The cashier also enters in his "cash book" the number and amount of any warrant paid by him over the counter. The warrants paid and canceled on each day are also entered con- secutively by numbers on an adding machine form bearing the heading "warrants paid and canceled." 1. Number. 2. Amount. 3. Number. 4. Amount. 5. Number. 6. Amount. This adding machine form is a very convenient form. It is made to fit into a loose-leaf binder as a permanent record, and from it post- ings are made to the credit side of the "cash book." A separate "war- rants paid and canceled" sheet is used each day for each State fund. The total amount of the "warrants paid and canceled" sheet for each fund is posted each day to the credit side of the "cash book" with the explanation "as per list." "Cash Ledger" The debits and credits in the "cash book" are posted each day to a "cash ledger." This ledger is in the usual ledger form. Accounts are maintained in the ledger with each of the funds of the State. Local Bond Cash Transactions. Under Chapter 113 of the Statutes, the various municipal cor- porations of the State have issued the bonds of such corporations to aid in such local improvements as the building of railroads and other public utilities. These bonds are secured by special taxes, which have been collected into the State treasury and are accounted for under what is known as the "Local Bond Fund." The coupons on these bonds are usually payable semi-annually, and are commonly paid by l)anks throughout the State upon their presentment by bondholders, although such coupons are also honored over the counter of the State 1 reasurer. As the amount of money paid to any one holder of such bonds is usually small, a convenient procedure has grown up in the office of the State Treasurer for the handling of such bond trans- actions directly by the Treasurer, with only periodical review by the State Auditor. 'i 218 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 219 I Coupons paid by banks are mailed by them to the oflfice of the State Treasurer at the same time and in the same way as the banks present State warrants which they have paid. Such coupons paid by banks are entered by the cashier in his "cash book." (See form 11.) The cashier also enters in his "cash book" payments of coupons made by him over the counter. A separate cash book is maintained for bond transactions known as the "daily bond cash book." It has the following columns : 1. Date. 2. Items. 3. Debit. 4. Credit. 5. Balance. In this "daily bond cash book" the bond taxes transmitted by the County Treasurer are debited as received. Daily payments are cred- ited by iterns. After crediting- daily payments by coupon numbers, the coupons paid under each bond issue during the day are placed in small envelopes. The receipts from county treasurers, debited in the "daily bond cash book," are transferred item by item to a similar cash book known as "bond cash book number two." The form of this cash book is the same as that of the "daily bond cash book." The credits to this "bond cash book number two" are the warrants issued periodi- cally by the Auditor. From time to time the Auditor, or his repre- sentative, comes to the office of the Treasurer and draws a warrant covering all bond coupon payments for which he has not drawn a warrant. It is these periodical warrants that are credited in the "bond cash book number two." It will be seen that the procedure in handling the payment of local improvement bond coupons is much the same as that employed in a commercial house for the handling of petty cash items. During the period in which coupon payments are carried on the first bond cash book without the authority of the State Auditor's war- rant, the sum of such payments is carried in the reports of the State Treasurer as an asset item similar to cash for which the State Treas- urer is personally responsible. ^ The State Treasurer is in effect the auditor of the payment of registered local bond coupons, although he is relieved periodically of his responsibility by the drawing of the Auditor's warrant. The State Treasurer has in his vault a file of local improvement bonds indexed by counties, cities and towns. The office of the State Treasurer also maintains a "bond register." A page of this "bond register" is used for each bond issue of each county, city or town. The register gives such information as the name of the municipal corporation issuing the issue, the names and titles of the officers signing the bonds, the place where the bonds are payable, the total amount of the issue, the date of the issue, the due date of the issue, the interest rate, the dates and amounts of the issue disposed of at various times, and the dates and amounts of the issue paid at various times. The State Auditor makes an abstract from this "bond register" and includes a typewritten statement as to each issue with his report to the county officers at the time of tax levying. Monthly Reports of the Treasurer. At the end of each month, the State Treasurer makes a complete report to the State Auditor. (See form 13.) This report shows the amount received in each State fund and to the credit of each local bond fund and the amount paid from each State fund and from each local bond fund. The monthly report is accompanied by a detailed staterhent of receipts into local bond funds during the month (form 14) and of the warrants paid and canceled against State funds (form 15) and against local bond funds (form 16) during the month. The office of the State Auditor audits this monthly report, check- ing the Treasurer's statement as to fund receipts against the duplica- tion of Treasurer's receipts on file in the office of the State Auditor, and against the duplicates of Auditors' orders on file in the office of the State Auditor, and checking the State Treasurer's statement of fund disbursements against the "warrant journal" in the office of the State Auditor. State Depositaries. Under State law, the State Treasurer is required to deposit funds in such banks as he may select. To protect himself In such deposits the State Treasurer requires banks to deposit securities with the bank that is the chief depositary of the State Treasurer. The requirements concernincr such securities are set forth in a printed notice sent by the State Treasurer to each depositary. (See form A.) One of the securities required by the State Treasurer is the adoption of a resolu- tion giving the State Treasurer power over the securities deposited. (See forms B and C.) The State Treasurer maintains a ledger. On a separate sheet for each depositary, the Treasurer makes a record of the securities deposited by that depositary and the return of such securities to the depositary. On another sheet in the same ledger, the State Treasurer makes a record of the money deposited with each depositary and of the transfers of sucli money from the depositary to Chicago banks, throusrh which State warrants are cleared. At the end of each month, the State Treasurer requires his office to rr^ke a report to him shownng on the debit side the amounts depos- ited in the several State depositaries, the amount of coupon payments not as yet relieved bv the w^arrant of the State Auditor, and the amount of cash on hand. On the credit side of this report, is given the cash halance in each of the funds in the State. Supplementary to this bal- ance sheet, a report is made to the Treasurer of the receipts into, and disbursements from depositaries during the month, and receipts into ^nd disbursements from State funds during the month. It will be seen that the Treasurer has for his personal use a double entry trial balance, as between depositaries, coupon pa5mients, and cash, on the one hand, and the balances in State funds, for which he is re- sponsible, on the other hand. I I 220 EFFICIENCY AND ECONOMY COMMITTEE. I h II' I >i I y li Biennial Report of the Treasurer. The Treasurer makes a biennial report showing the receipts into, and the disbursements from the several State funds during the bien- nium. F. CONCLUSIONS. In preceding pages, an attempt has been made to give an outline of the accounting system of the State. The study made in gathering materials for this working outline has been by no means exhaustive or conclusive. It may be valuable, however, to state certain general conclusions formed during the progress of the report. * 1. The present Constitution of the State makes ample provision for the establishment of a scientific budget and appropriation control, of cost accounts, and of asset and liability accounts. 2. The Constitution does not center all of the accounting respon- sibility in the office of the Auditor of Public Accounts, but, by infer- ence, leaves the establishment of accounting responsibility to such laws as may be passed by the General Assembly. 3. The General Assembly has by law made various agencies in the State government responsible for the auditing of various classes of transactions. 4. The office of the Auditor of Public Accounts is the agency through which the tax rate of the State is computed and the tax laws of the State are enforced. 5. The accounting and auditing procedure in the office of the Auditor of Public Accounts is concerned chiefly with the enforcement of appropriation laws to the end that departments may not exceed their appropriations, and to the end that departments may not make charges against appropriations not contemplated by the General Assembly. ^ 6. The present system of appropriation laws is far from being a scientific one. The State Auditor will be greatly aided in his work if appropriations are passed in the form of a classified budget. 7. The State Treasurer is not an auditing officer, but has large responsibilities in the nandling of cash. 8. The present accounting procedure in State offices is confined to cash receipts and cash disbursements, and is both adequate and well enforced as a system of cash bookkeeping. (Some slight duplication of work has been noted. Upon investigation it may be found that this duplication of work is more than oflFset by the extra protection it affords.) 9. No attempt is made to record accounts payable of various departments and institutions in the office of the State Auditor. It would seem that some system showing accounts payable and orders and con- tracts outstanding should be maintained, either by departments and institutions, or by the State Auditor. 10. The present reports of departments and institutions, and of the State Auditor, give a very great deal of detail with regard to names of persons paying moneys into the State treasury, and with regard to names of persons to whom State warrants are made payable. It would 221 seem that some of this detail might be well replaced by accounts giving a more systematic analysis of the purposes for which appropriations are expended by departments and institutions. In this connection, reference is made to the report of the Comptroller of the University of Illinois, for the biennium ending June 30, 1913. 11. The present inventory law is impracticable and should be replaced by a more practical system for the recording of the properties owned by the State. List of Forms. Number Valuation of property listed for taxation 1 Auditor's circular letter giving tax rate 2 County collector's statement of account 3 Auditor's order for Treasurer to receive taxes from county collector 4 County treasurer's report of inheritance tax collections 5 Copy of inheritance tax receipt 6 Auditor's order for Treasurer to receive money 7 List of warrants 8 Warrant journal v9 Pay roll certificate of Civil Service Commission ( See page 37) 10 Cashier's cash book ^ H Warrants paid and cancelled ." 12 Treasurer's monthly report of Local Bond Funds received 13 Treasurer's monthly report to Auditor 14 Treasurer's monthly statement of warrants paid and cancelled 15 Treasurer's monthly statement of Local Bond Fund warrants paid and cancelled 16 Statement of securities required of depositaries A Forms of adoption of resolution giving Treasurer power over securities deposited B-C ^^^P' I li ■ 1 1 1 ■ ■ ■ ' I ^ 1 II. ACCOUNTING NEEDS OF THE STATE OF ILLINOIS. INTRODUCTION. The State of Illinois needs a complete system of accounting. The present accounts of the Auditor of Public Accounts, and of State departments and institutions, are confined to records of cash receipts and disbursements. The present accounts satisfy the requirements of the Illinois statutes as to legal safeguards for the handling of public money. But every business man who has had occasion to refer to Illinois financial reports knows that the present cash accounts do not adequately reflect the important work of the State, and that sucli atcounts cannot be used intelligently in planning the ever increasing: work of the State. The business men of Illinois are accustomed to conduct even small commercial enterprises by constant reference to clear cut balance sheets and carefully classified statements of revenue and expenditure. It is not to be inferred that forms and methods of commercial nccountinq: should be installed in State offices. The accounting of the State of Illinois must be governmental accounting — it must be based on the legal organization of the State. The accounts of the State must he of service in governmental transactions and for governmental purposes. Indeed, governmental accounts cannot be used in many ways that com- mercial accounts are used. The balance sheet of a commercial organiza- tion is frequently used as a credit instrument in the borrowing of money. But the State cannot mortgage its land and buildings and. hence, does not need a balance sheet for borrowing purposes. The State does need a record of its assets for governmental purposes, sucli as the safeguarding of public property and the computation of amount^ needed for the repair and replacement of buildings. While the specific uses of State accounts differ wndely from the specific uses of commercial accounts, the accounting system needed by the State of Illinois and the accounting system needed by any business enterprise agree in two fundamental requirements: 1. The provision of auditing safeguards over the custody and use of money, credit and permanent property. 2. The provisions of records and reports of financial transactions for the information of those who plan and carry out such transactions. The purpose of this report is to point out in some detail the present accounting needs of the State and to suggest a basis for complete accounting. This report is not an attempt to set out a system or accounts as such. The preparation and installation of a complete accounting system for the State will involve a very considerable amount of constructive REPORT ON ACCOUNTS. 223 work of the first order. This report will serve its purpose if it attracts attention to the pressing need for constructive accounting work. The (iiiicral Assembly shcnild creatf an authority charged with the duty of installing and maintaining proper accounts for the business of the State of Illinois, and this authority should engage a permanent staff of competent accountants. It will take time and effort to install proper accounts, to maintain proper accounts, and to revise the accounting system to meet changing conditions. - AUDITING REQUIREMENTS OF THE STATE. The following auditing safeguards should be provided by the accounting and reporting system of the State: 1. The receipt and disbursement of public money Should be safe- guarded to prevent fraud and embezzlement on the part of officers charged with the financial transactions of the State. 2. The records and audits of receipts should make certain, first, that all money collectable has been collected or accounted for', and,' second, that all money collected has been collected under law and by the methods set forth in the law. 3. The records and audits of disbursements should make certain that all public money disbursed has been disbursed under law and by the methods prescribed by law. 4. The records and audits of disbursements should make certain that the State has received full value for each disbursement of public money. 5. The records and reports of outstanding encumbrances on account of contracts, open market orders, and salary obligations, should make certain that the credit of the State is pledged only to the extent provided for in appropriation laws. 6 The records and reports of the permanent assets of the State and the verification of such records and reports by actual inspection should make certain that the property of the State is properly used' safeguarded, and accounted for. ^^ t^ j These accounting requirements are fundamental, and must be squarely and fully met by any accounting system devised for any de- partment or institution of the State government. The Constitution and laws of the State of Illinois adequatelv provide for the fundamental requirements of good governmental accountancy. The Constitution and laws provide that no revenue shall oe collected and that no money shall be spent, excepting under le^is- inn? Tn^T"*- T^^ Constitution specifically provides that appropHa- "ons shall be made from biennium to biennium. In this wav the general Assembly is compelled to set up a financial program for 'each uccessive biennium. The Constitution provides that the Governor "an lay recommendations before the General Assemblv as to the WHv"^i?^ ^ appropriations necessary for the next biennium. In this of^V.. Constitution clearly contemplates the modern budget method for .n A ^"^"^^^ Th? Constitution provides for a State Treasurer and bonded nt^'^^u^'o^'^ Accounts. The Constitution provides that the oonded debt of the State shall be limited to two hundred fifty thou- *'* ¥ i I :"' 1. 224 EFFICIENCY AND ECONOMY COMMITTEE. sand dollars, and the inference is plain that the contractual obligations of the State shall be kept within the appropriations passed by the General Assembly for each biennium. Wrongful use of public property is made a misdemeanor, and the State law provides for inventory reports to the office of the Auditor of Public Accounts. The safeguarding of State money, State credit, and State property is clearly a duty of the officers of the State, irrespective of specific laws and Constitutional provisions. THE NEED FOR FINANCIAL INFORMATION. But a plan of accounting for the State of Illinois must do more than protect public money, and public credit, and public property against embezzlement. In addition to providing protection as to the handling of public money, the financial and accounting system of the State must afford data needed by all of those who have to do with the planning and carrying out of the financial program for each biennium. The account- ing system of the State must afford information for the following officers : 1. The members of the General Assembly. 2. The Governor. 3. The State Tax Board. 4. The State Board of Equalization. 5. The Auditor of Public Accounts. 6. The State Treasurer. 7. The heads of departments and members of boards in charge of institutions. 8. The employees responsible for activities of departments and institutions. The public at large will also make demands upon the accounting system of the State ; first of all, as taxpayers from whose pockets the necessary revenue must come to meet appropriations; and second, as citizens interested in one or more of the various departments and institutions of the State, because of the connection of those depart- ments with their private business and private life. The publication of financial reports in understandable form will in itself increase the interest of citizens in the public welfare service performed by each State department and State institution. ACCOUNTING INFORMATION NEEDED BY MEMBERS OF THE GENERAL ASSEMBLY. To carry out their responsibilities in enacting the financial pro- gram of the State, the members of the General Assembly need, first, information upon which revenue laws and appropriation Acts can be based; second, a record kept up from day to day during the session of the General Assembly as to the effect upon the complete financial program of the State of revenue laws and appropriations as they are passed; and, third, a final budget to be prepared at the conclusion of the session, showing an estimate of revenue and a statement of appropriations under the laws passed. .3 REPORT ON ACCOUNTS. 225 m Each department and institution of the State should be required to report to the Governor, or to some authority designated by the Governor, an estimate of its needs for the next biennium, classified so as to show the estimated cost of each kind of service and material needed for each activity of the department or institution. Each depart- ment and institution acting as a collecting agency should report to the same authority an estimate of the revenue collectable during the next biennium. The basis for this estimate should be existing revenue laws. There should be prepared an estimate of the revenue collectable dur- ing the next biennium from State taxes, if tax rates and tax laws re- main the same as they were during the biennium at the close of which the General Assembly meets. From this information, the Governor, or the budget-making authority designated, should prepare a "proposed budget." This statement of budget proposals should compare requests for appropriations with an estimate of the revenue available for the bien- nium under existing revenue laws and rates. This comparison shotfld be by funds, e. g., the requests for appro- priations from the general revenue fund should be compared with an estimate of the revenue collectable for that fund. The revenue of the State is now segregated into the following funds: 1. The general revenue fund. 2. State school fund. 3. University mill tax fund. 4. State game protection fund. 5. State fish protection fund. 6. State food commission fund. 7. Board of administration fund. 8. Miners' examining fund. 9. School text book fund. Some of these funds are without definite meaning, in that the present policy of the State does not seem to- require the setting aside of money for the exclusive use indicated by the titles of the funds. But some of the specific funds, such as the school fund and the uni- versity mill tax fund, do express established public policy. The bud- get proposals should be classified by funds if for no other reason than that such a classification will test the necessity for each fund. The estimate of revenue for each fund should be classified so as to show the amount of each kind of revenue collectable by each col- lecting agency of the State. Such a classification will bring into re- view biennially the machinery under which each kind of State revenue is collected. Estimates of revenue collectable cannot be scrutinized intelligently without reference to collection agences ; first, because such estimates will originate with collection agencies, and, second, the method of collection has very much to do with the amount of revenue actually collectable under any revenue law. For example, the office of the Attorney General supervises the administration of inheritance taxes. It is to be expected that budget-making authorities will con- sult the office of the Attorney General in fixing an estimate on inherit- ance taxes collectible during a biennium, and it is to be expected fur- I . 226 EFFICIENCY AND ECONOMY COMMITTEE. tt IB \ Ik f ^ i ther that the Legislature will consider the personnel, organization and procedure of the office of the Attorney General in reviewing the esti- mate. The estimate of revenue collectable by each collection agency should be classified as to kind of revenue; since a given agency may turn receipts into the State treasury derived from widely varying classes of revenue. The office of the Secretary of State, for example, collects such widely different revenue as that derived from automobile licenses and that derived from fees for the filing of papers of incor- poration. Appropriation requests from each fund should be classified so as to show the total amount requested by each department and institu- tion. Many of the departments of the State are beneficiaries under general appropriations for salaries and for printing, supplies and the like administered by the State Board of Contracts and the Secretary of State. Appropriation requests should be so classified in the state- ment of budget proposals as to show the amounts requested by each department for its direct use, and so as to show also the amount that each department expects to share in general appropriations. The effect of such a classification will be to fix responsibility for the use of public supplies even although general appropriations are continued as a means of purchasing and other administrative economy. The appropriation requests of each department and institution should be classified first of all, as between requests for land, buildings and permanent equipment, and requests for operation and maintenance expenses. Land, building and equipment requests should be further classified by projects. Operation and maintenance requests should be classified by units of operation so that the Legislature may know how rnuch each department and institution requests for each of its internal divisions, activities or functions. The statement of proposed expendi- ture for each activity should be supported by estimates of the cost of each kind of service and each kind of material needed in carrying on the activity during the bicnnium. For example, the office of the Auditor of Public Accounts should give information along the fol- lowing lines in support of the appropriation requests for the office: 1. From the general revenue fund — A. For permanent equipment. (1) Furniture and fixtures. B. For operation and maintenance. (1) General administration. (a) Salaries and wages. (b) Stationery and postage. (c) Telegraph and telephone. (d) Freight and express. (e) Office supplies. (2) Audit of revenue collections. (a) Salaries and wages. (b) Stationery and postage. (c) Telegraph and telephone. REPORT ON ACCOUNTS. 227 (d) Freight and express. (e) Office supplies. (3) Audit of disbursements under appropriations. (a) Salaries and wages. (b) Stationery and postage. (c) Telegraph and telephone. (d) Freight and express. (e) Office supplies. * (4) State inventory. (5) Examination of banks, trust companies and loan com- panies. (6) Etc. The purpose of the "proposed budget" is to show an estimate of revenue for the next biennium, set over against the appropriation re- quests for the next biennium. In order that these estimates and re- quests may have a definite meaning and connection with the previous financial policy of the State, the estimates of revenues should be com- pared with actual receipts ; and appropriation requests should be com- pared with actual disbursements for the two bienniums preceding the biennium for which the appropriations are asked. Inasmuch as the General Assembly meets during the second year of the biennium next preceding the biennium for which appropriations are asked, it will be necessary to set up an estimate for that year, both as to receipts and as to disbursements. A form for a summary of budget proposals by funds is shown as Schedule 1 ; a form for the comparison of revenue estimates with previous receipts is shown as Schedule 2, and a form for the comparison of appropriation requests with disbursements is shown as Schedule 3. These schedules are introduced to illustrate the comparison essential to budget-making. SCHEDULE 1. Statement of Budget Proposals by Funds, for the Biennium ipi^-ipiy. Estimated Revenue Appropriation Requests ^'""d Amount Fund Amount General Revenue Fund General Revenue Fund *Excess of Requests School Fund School Fund *Excess of Requests University Mill Tax Fund, etc. tra t*J^^- !f^^"*'^^ r>°'"t is that the appropriation requests from each fund shall be izon astea with the estimate of revenue for each fund. The summary may take several forms con- !■ ^ fft' 228 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 229 I' r ^ en ^ W^ 1-1 CO t eg Q u « u CO ^ ex ex s s CO "«^ a; On Q,»— I • ST I m ■*-» CO V) u C rt C3 o 73 c • .-4 4J '-m^ CO'O J! 1 8 I I < CO t^ Q W u ^ Ho H* I C/l u C «^ c H o o^ N %k ^ ropr 914- < •^ cx OQ H C ^ ^ g .H o S>4 •«* • ^-1 1 s ^co 1- H — oq O4 n ^ < ■4-< vo 1) 1 310 a; 0\ P rt ni OT ti -S 5" O rt Q'*-' li CO I 43 OS u o %^ « Si S O I i \ '? ^ 230 EFFICIENCY AND ECONOMY COMMITTEE. The best test that the proposed budget can have lies in the com- parison of the estimate of revenue and appropriation requests with the actual and estimated receipts and disbursements for the two preceding bienniums. An additional comparison of great value is a comparison of the estimate of revenue and appropriation requests with the estimate of revenue and appropriations enacted by the preceding General Assembly. The form of such a comparison is shown in Schedule 4; It may be noted in this connection that the State law now provides for budget data in this form, to be compiled by the Legislative Reference Bureau. The form of the "proposed budget" suggested, provides for a classification of revenue estimates and of appropriations, first of all, under funds, and then, by collecting agencies for revenue and by de- partments and institutions for appropriations. It will be found desirable to set up a summary, so as to show the total estimate for each kind of revenue, no matter to what fund the revenue is to accrue, or by what collecting agency it is to be secured. A similar summary should be made for the proposed appropriations for similar activities under de- partments and institutions. Thus, for example, a summary may be made of the requests for carrying on health and sanitation work, bring- ing together in one schedule the provision made for such work in the requests of different departments and institutions. The General Assembly as a body, and especially individual mem- bers, will be particularly interested in the appropriation requests of a particular department of the State, such as the Illinois National Guard, or of a particular institution, such as the Eastern Illinois State Normal School. In addition to the schedules already discussed, data concerning]: each particular department and institution should be set up in separate schedule form, and these separate schedules should be accompanied by supporting statistics as to the work done by the departments and institu- tions imder each of their activities. The provision for separate budget schedules for each department and institution is of fundamental importance. In order that the Legis- lature may have before it a summary of the appropriation requests of all the departments and institutions it will be necessary for each depart- ment and institution to make its requests under a standard classification. But the requirements of the standard classification need go but little further than the fundamental distinction beween requests for addi- tion to land, buildings and equipment and requests for operation and maintenance. Each department and institution of the State has its own field of work and should be permitted to express its requirements in terms of its own field. This is, of course, the particularly difficult problem of classification that must be solved by the authority engaged in the preparation of the statement of budget proposals for the Legis- lature. The problem is emphasized here because of the tendency of budget making authorities in a few States and cities to impose a hard and fast uniform classification of requests upon widely varying kinds of departments and institutions. In addition to the financial data provided for in the schedules discussed above, a careful digest should be made of the revenue laws REPORT ON ACCOUNTS. 231 and appropriation acts in force during the biennium, at the close of which the General Assembly meets. This digest of revenue laws and appropriation acts should follow the same classification as that given for revenue and appropriations in the "proposed budget.'* Such information as to the present status of the law will enable the General Assembly to consider the estimate of revenue and appropria- tion requests in connection with existing law. Such consideration must be given if the will of the General Assembly as to the estimate of revenue and appropriations is to be fully accomplished by changes in the laws. Further, these laws reflect the present legal accounting classification that the Auditor of Public Accounts, departments and institutions are compelled to keep. If officers and citizens are to think aright on public questions they must have reports based on carefully classified accounts. It must be emphasized that accounting classifica- tion is determined by statutory requirements. The summary of revenue estimates and appropriation requests will place squarely before the General Assembly the problem of financing the needs of the State for the next biennium. Revenue laws and tax rates must be so revised and appropriation requests must be so increased or reduced as to bring revenue estimates and appropriations into balance in the final budget compiled at the close of the legislative session. All of the above information should be compiled by the pffice of the Governor, or by the budget making authority; printed and pub- lished, so that it may be available to members of the General Assembly, and to the public generally, at least one month before the General Assembly meets. The statement of budget allotments will of course contain summaries setting forth the appropriations requests made against each fund of the State. These summaries should be accom- panied with data showing the increase of taxes, fees, licenses, etc., necessary if the total amount of the appropriation requests are granted. The statement of the budget proposals should contain the recom- mendations of the Governor as to each appropriation request. The exact time at which the Governor should present his budget and budget recommendations is. a matter of considerable difficulty, because the term of the Governor commences on the first day of the legislative w-lf k"* Ji ^ budget is prepared in advance of the legislative session it will be difficult for the Governor-elect to make his recommendations ; ana the Governor whose term is expiring may not be disposed to make responsible recommendations which he will be unable to defend netore the General Assembly because of the expiration of his term ine best working plan will doubtless be for the Governor then in office 10 include tentative recommendations in the statement of the budget proposals that is published thirty days before the General Assembly neets. 1 hese tentative recommendations from the then Governor, can to ^yPP/?""^^"^^^ o^ revised by the newly elected Governor in messages ^^ tne General Assembly at or after the beginning of the legislative When the General Assembly meets, or as soon as possible there- i^er, a copy of the "proposed budget" should be handed to each 1 1 i 232 EFFICIENCY AND ECONOMY COMMITTEE. member, together with a message from the Governor, giving executive recommendations as to each estimate of revenue and as to each appro- priation request contained therein. These copies of the ''proposed budget" should be put in such form that members of the finance com- mittees of the General Assembly can enter their own recommendations on the face of the several schedules, and thus make use of the classifica- tion already prepared by the budget making authority. The clerks of the finance committees may very well have as one of their duties the keeping of the recommendations of the finance committees in the same classification as the "proposed budget." The clerk should note further any changes that may be made in revenue laws and appropria- tion acts, and should classify such changes in the same way as the digest of the revenue laws and the appropriation laws are classified in the "proposed budget" report. As the General Assembly passes new revenue laws and new appropriation Acts, the clerks of the finance committees should report the progress of the budget, so that members of the General Assembly can, at any time, find out how far the financial program of the State has been aflfected by the passage of any particular revenue law or appropriation. This will pave the way for the enact- ment as one bill of a complete State budget of revenue estimates and appropriations. Such a desideratum will evolve from the plan herein proposed although it must come gradually, having in mind the force of present legislative traditions. At the end of the legislative session, the Auditor of Public Accounts, cooperating with the Secretary of State (who is the legal custodian of State law) should compile and publish a final budget, containing an estimate of the revenue collectable under the revenue laws passed by the General Assembly, and containing a statement of the appropriations provided by the General Assembly. This final budget should be classified and summarized in the same form as the "proposed budget," so that officers of the State and interested citizens may readily compare the final budget with the "proposed budget." It will be noted that the classification suggested for the "proposed budget" provides that each department and institution shall place before the General Assembly a statement of the appropriation needed for each kind of service, and each kind of materials, to be secured for each activity of the department, or institution. It will be easily seen that data in such classified detail is necessary if the legislature is to thor- oughly consider any particular appropriation request. It by no means follows that the Legislature should enact appropriation laws carrying such detail. In most, if not in all cases, the General Assembly should provide lump appropriations for departments and institutions, distin- guishing simply between appropriations available, on the one hand, for land, buildings, and equipment, and, on the other hand, appropriations available for operation and maintenance expenses. In turn, the heads of departments and governing boards of institutions should set up annual departmental or institutional budgets making allotments from the funds supplied by the General Assembly. These departmental budgets should provide allotments for each particular project under land, buildings and equipment, and for each particular activity of the department or institution under operation and maintenance. REPORT ON ACCOUNTS. REPORTS NEEDED BY THE GOVERNOR. 233 As the Chief Executive of the State, the Governor is constantly consulted by the members of the General Assembly as to the proposed financial program of the State ; and the Governor is directly and con- tinuously concerned with State finances after appropriations are passed by the General Assembly. The Constitution provides that the Gov- ernor shall make a report to the General Assembly setting forth the financial needs of the State. The Governors of Illinois have never complied with the requirements of the Constitution, except indirectly as they chose to advise with the various members of the legislative body. After the Governor has presented the "proposed budget" for the consideration of the General Assembly, and the General Assembly has enacted revenue and appropriation laws, the Governor needs a com- plete report setting forth in accounting form the results to be ex- pected from the legislation. The Governor needs this information, first of all, as a member of the State Tax Levy Board, charged with the responsibility of fixing the tax rate. The Governor needs this in- formation further in checking the legal audit performed by the Auditor of Public Accounts, and in checking upon the legal accounts main- tained in the office of the Auditor. The Governor needs this informa- tion if he is properly to advise the departments and institutions of the State as to revenues available to them for carrying on the work for the next biennium. Finally, the Governor needs such a report at the close of the legislative session, if he is to acquaint the public with the financial situation in the State in a definite and clear-cut way. After the General Assembly has provided a financial program, the Governor needs reports from each of the revenue collecting agencies of the State, showing the manner in which it is proposed to collect revenue; and a report from each of the departments and institutions of the State, showing the manner in which each department and each institution proposes to spend the money made available to it for the next biennium. The Governor should have for his information depart- mental and institutional budgets that will, on the one hand, take into account the revenue available to the department or institution for the biennium, and will, on the other hand, take into account the allot- ments to be made within the department or institution for the various activities of the department or institution for each year of the bien- nium. The form of the departmental or institutional budget is dis- cussed further in considering the accounting needs of departments and institutions. After the Governor has received a report from each revenue col- lecting agency of the State as to the revenue collecting plans for the biennium, the Governor should have access to monthly and quarterly reports showing how the revenue is being collected. Without access to such reports, the Governor will be unable to make an intelligent study of the revenue collection. Similarly, after the Governor has placed before him the internal budget of each department and of each institution, the Governor should also have access to monthly and fiP^ » .- 234 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 235 !i' ( , 1 1 quarterly reports showing the disbursements and outstanding encum- brances under each one of the allotments made for the internal guid- ance of each department and institution. The governor should have access to frequent reports, perhaps monthly reports, showing the kinds of service and materials purchased in carrying out the work of each one of the activities of each depart- ment and institution. Without free access to such cost data, the Gov- ernor cannot be expected to exercise any check upon the efficiency and economy with which departments and institutions are conducted. It will be seen that the Governor needs five classes of reports. First of all, the Governor needs such data as will enable him to make a report to the General Assembly comparing the financial needs of the State with the revenue and expenditure of the State for the last preceding biennium and for the biennium at the close of which the General Assembly meets. Second, the Governor needs a report at the conclusion of the meeting of the General Assembly setting forth in definite form the revenue expected under the revenue laws passed by the General Assembly, and the disbursements possible under the appro- priations passed by the General Assembly. Third, the Governor needs a statement as to the proposed internal budget of each department and institution of the State for the coming biennium, showing how each department and institution expects to spend the money available for its use in carrying out each one of its various activities. Fourth, the Governor should have access to monthly and quarterly statements as to disbursements and outstanding encumbrances under each one of the allotments provided for the carrying on of the work of each depart- ment and institution. And, fifth, the Governor should have cost data available for his use, showing the kinds of service and kinds of mate- rial purchased and ordered by each department and institution in carry- ing out its activities. With these reports at hand, the Governor will be enabled to write his message to the General Assembly ; to stimulate public interest in public business; to answer in a satisfactory way the questions raised by citizens who have been made interested in any one of the activities of any department or institution; and to intervene intelligently in the management of departments and institutions both by the allocating of responsibility and the ready checking of such detail as may become important in its relation to the larger problems of the State. The office of the Governor is now provided with an institutional auditor whose duty it is to check the receipts and disbursements of most of the departments located at Springfield. The duties of this officer arise under appropriation Acts providing that disbursements under such appropriations shall be approved by the Governor. The Institutional Auditor also reviews the semi-annual financial reports as to receipts and disbursements now made to the Governor by the de- partments and institutions of the State. Under the plan of the accounting proposed herein, the Institutional Auditor would be in a position to call for reports from departments and institutions and to review them for the Governor, as well as to make certain that the Governor has prompt access to any one of the reports contemplated by the accounting system of the State. The Insti- tutional Auditor will then be enabled to call for such further special reports as the Governor may need in addition to the regular monthly, quarterly and annual reports. REPORTS NEEDED BY THE STATE TAX BOARD. It is the duty of the State Tax Board (composed of the Governor, the Auditor of Public Accounts, and the State Treasurer) to fix such a rate of taxation as will provide receipts for the various funds of the State, sufficient in amount to care for the appropriations passed by the General Assembly. The State Tax Board meets for work at the close of the legislative session, and must, therefore, know the status of the revenue laws and of appropriation estimates as fixed by the Acts of the Legislature. After the State Tax Board has fixed the various rates of State taxation, a public report should be made showing the bases on which the rates have been fixed. REPORTS NEEDED BY THE STATE BOARD OF EQUALIZATION. The State Board, of Equalization is charged with the duty of equalizing the assessment rolls for the various counties of the State, and with the further duty of assessing the values of railroad property and of the capital stock of corporations. In performing their duties, the members of the Board of Equalization need to have before them' a very considerable amount of financial data having to do with values for assessment purposes. The Board of Equalization should be fur- nished with financial data in classified form. If a staflF of constructive accountants is employed by the State for constructive accounting work such accountants may very well be called upon to assist in properly classifying the data needed by the State Board of Equalization: The needs^ of the State Tax Board and of the State Board of hqiialization will become the needs of the State Tax Commission or ot the btate Finance Commission if such a new body is established. ACCOUNTS AND REPORTS OF THE AUDITOR OF PUBLIC ACCOUNTS. After the General Assembly adjourns, the responsibility for the carrying out of its will, both as to raising revenue and as to the ex- penditure of public money and public credit, devolves upon the Auditor ot Public Accounts. The Auditor of Public Accounts must necessarily Keep such accounts as will enable him to prove that moneys collected nave been collected under law, and such accounts as will enable him to prove that disbursements have been made in accordance with ap- propriation Acts. Any real reform in the accounts maintained by the e.; L ;u ?"* ^^V'^' *^^^^^o^e, originate in the budget-making proc- 'cienJfi! n ^",^^^l^^*"r^- I^ the General Assembly does not enact a sc Pn fi / classified system of taxation and of revenue laws, nor a exne. .V, cf l^^A T^^"^ ^^ appropriation laws, it cannot very well cnLfL r?i Auditor to maintain scientific accounts under the laws niaTnV.- . ''''"'''^; '* '' "f'"*^ P^^^^^^^ t^^t the State Auditor mav under r ^"^'""/^l^ °^ accounts, so that he accounts for public money ""(ler law and also under a scientific classification of receipts and dis- I ; f Mi 'Ae^ .7,, 236 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 237 bursements. It is doubtful whether such an artificial system can long continue under a representative or democratic system of government. It is to be expected that the State Auditor will emphasize the accounts that he is absolutely required to keep, and that he will minimize the keeping of records that will afiford information not necessary for the discharge of legal responsibilities, however necessary and valuable the information may be in the proper interpretation of the financial pro- gram of the State. The State Auditor's records are of vital importance in any con- sideration of the financial system of the State. From the records main- tained by the State Auditor, must be prepared the data as to receipts and disbursements for preceding bienniums necessary for the use of the Legislature. The State Auditor should, therefore, keep revenue accounts so analyzed as to permit of the making of comparisons for budget purposes, as well as to permit of a careful audit as to revenue collectable and outstanding. The Auditor's accounts as to the dis- bursements under appropriations should also afford the analysis of disbursements necessary in setting up the disbursement side of the budget report. » It would be possible for the Auditor to maintain a disbursement account so as to show the disbursements for each of the activities of each department and institution, and also so as to show the disburse- ment for each kind of service and each kind of materials purchased for each such activity. Such an extended analysis of disbursements would, however, greatly hamper the efficiency of the Auditor's office as a collection and disbursement agency. The same information is needed at each of the departments and institutions. The purpose can be served if each department and institution is required to keep proper revenue and disbursement accounts. There should be a constructive accounting authority with power to prescribe standard cost accounts and standard revenue accounts. The Auditor should review monthly and quarterly reports of departments and institutions so as to make certain that proper revenue analysis and cost accounts are being main- tained. The Auditor should also require monthly and quarterly re- ports from departments and institutions as to outstanding encum- brances and free balances of the internal allotments of the departments and institutions. In no other way can the Auditor assure himself that departments and institutions are financing their work in such a way as to insure the sufficiency of the appropriations provided by the Leg- islature for the whole period during which such work must be car- ried on. If the Auditor maintains the accounts so far discussed, and if the Auditor audits the accounting systems prescribed for departments and institutions as to internal allotment balances and as to revenue analysis and cost data, the Auditor will have such a system of accounts as he needs in making a proper check upon the receipts and disbursements of the State Treasurer. The present State Law requires the State Auditor to maintain a perpetual inventory upon all the property of the State, based upon detailed reports submitted every ten days by departments and insti- tutions. The present law is impracticable and should be repealed. The Auditor should require each department and institution to main- tain a perpetual inventory, and to make at least quarterly reports to him of additions to the inventory or disposal of property. The Auditor should maintain control accounts over the perpetual inventories main- tained by departments and institutions, and should audit and review the quarterly and annual reports of departments and institutions so that he may be able to certify that the permanent property of the State is protected by proper inventory and accounting methods. To this end, departments and institutions should follow a prescribed classification of permanent property in maintaining their perpetual inventories. The records so far discussed provide for controlling accounts in the office of the State Auditor with revenue collections and revenue collectable and with disbursements under appropriations and outstand- ing encumbrances against appropriations. The records provide fur- ther for controlling accounts summarizing the perpetual inventories of the permanent property maintained by departments and institu- tions. From this data the State Auditor should set up a consolidated balance sheet for the State showing the total assets and liabilities of the State as at the close of each year. The Auditor should set up such further balance sheets as may be necessary to show surplus of the State invested in permanent property for various classes of use, and the surplus of the State available in cash and stores for the business transactions of the coming year. ACCOUNTING NEEDS OF THE STATE TREASURER. The State Treasurer requires accounts showing his transactions as the custodian of public money. For all auditing purposes accounts showing receipts and disbursements by funds are sufficient since full detail must be kept by the State Auditor. . At the present time, the State Treasurer maintains a ledger show- ing the amounts of public money deposited in the banks selected as depositaries of State funds. This ledger is not an official record. Hven though the State Treasurer is liable on his bond for the entire lh!?''^Au P"^.^;? """"^y ^" ^'^ charge, it seems obvious that there Should be a public record of the depositaries in which State money is u.T'lL^ ^^ There should be daily reconcilements between accounts e.rL?^.i. r'!!^''f i^"o ^^^ accounts showing the cash balances in each of the funds of the State. acts fc"[u^'' ^^T }^l'' c '' *.° ^^ "^^^^ ^^^^ ^^^ treasurer at present i! I n . Tu^ ""^ ^^,^ ^\^^^ '" P^y"^^ ^"^^^^^t on certain public bonds oeJ ""' ^^' u^^'u ""I ^^'^ ^^^^^ Treasurer's office should be fre- be rJ^,V^H 7'f^ ^^ the State Auditor, and the State Treasurer should actiorinlhL^aTtLTar '"'""'' " "'^ ''''''' ''' '''''' '''' ^^^"^- ACCOUNTING NEEDS OF REVENUE COLLECTING AGENCIES. rcDorTI'f '!r"c^ collecting agencies of the State should make monthly on 11 . .^ Auditor showing the amount of each kind of rev- ro ! ^T,^^^^^ ^y them during the month and the amount of revenue collectable outstanding at the close of the month. These monthly re- I |i 238 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 239 * ports of receipts and revenue collectable should be made in schedules entirely separate from any reports that may be made as to disburse- ments, excepting in the case of industries of the semi-commercial nature, such as the industries of the State prison. It should be borne in mind that nearly all of the revenues of the State are only indirectly related to disbursements under appropriations. ACCOUNTING NEEDS OF HEADS OF DEPARTMENTS AND BOARDS IN CHARGE OF STATE INSTITUTIONS. The executive officers of departments and institutions need, first of all, to have in their possession a copy of the budget proposal con- sidered by the General Assembly a«nd a copy of the budget passed by the General Assembly. This information is needed so that department and institution officers may properly allocate their departments and institutions as integral parts of the State financial program. After the General Assembly adjourns, the heads of departments and institutional officers should be furnished by the State Auditor with specific information as to the revenue available for their use during each year of the coming biennium. The State appropriations available for the use of departments and institutions, together with an estimate of the revenue collectable by the department or institution that may be retained under law, constitutes the available income under which the work of the department or institution must be carried on. The officer, or governing board, should build up a budget showing the available income of the department or institution as over against allotments covering the estimated cost of carrying out each one of the activities of the institution. This departmental budget should be approved by the head of the department, or enacted by the board of trustees in charge of the institution, before the beginning of each year of the biennium. The procedure in making the local budget for a department or institution should follow the same lines as the procedure already indi- cated for the State budget. The responsible executives of the depart- ment or institution should first of all compile a statement of budget proposals. Allotment requests should be classified so as to show the amounts requested for each project under additions to land, buildings and permanent equipment, and so as to show the total amount requested for each sub-department or activity under proposed operation and main- tenance expense. The request for each allotment should be supported by detail giving an estimate of the cost of each kind of service and of each kind of material needed in carrying on the work of the activity for which the allotment is requested. The financial data for each project and activity should be detailed in a supplementary^ statement together with data as to the work program proposed under the project or activity for the year. The allotment requests should be summarized as over against an estimate of the revenue available to the department or institution for the year. This estimate of revenue should be classified by sources and kinds. The budget proposals should be compared witli the revenue and disbursements of at least three preceding years. The form of such a statement of budget proposals for a State normal school is shown in schedule 5. The items given are hypothetical and the schedule is shown by way of illustration only. a u V3 O Co o I V. •55 8 ft* vO (3 CX'— < QJIT) o.ti "^ c ^ .-2 'o ^ i! O ^ t— < cvi rri Tf »o li \ o O •J e o o E • a 'o '"^ c t/) CO E 'O E,? E O HH -^ ^ -^ t f J 240 EFFICIENCY AND ECONOMY COMMITTEE. The statement of budget proposals for the year should be accom- panied by a digest of State laws and regulations directly affecting the finances of the department or institution. After consideration, the governing board of the institution or head of the department should adopt a final budget for the year. Allotments in the final budget should be by projects and activities and should not be detailed as to expense items. Expense items and wages of non- technical employees should be left to the discretion of responsible executives. There are, however, important arguments to support the view that the local budget of each department and institution should give the salaries of permanent positions in detail. The final budget of the year should be placed in the hands of the financial officer of the department or institution as the official basis for receipts and disbursements and for accounts. The statement of budget proposals with its auxiliary statements of work programs by activities, the digest of laws and the final budget should be made a matter of systematic record even in the case of small departments and institutions. The larger institutions of the State now have such procedure, although in some cases the allotment requests and work programs, and even the final allotments, are made informally and without sufficient record for systematic administration. The re- quirement of such records in writing before the beginning of each fiscal year insures careful planning and affords an authentic basis for finan- cial administration and accounting. The monthly reports of departments and institutions acting as revenue collection agencies should include schedules showing revenue collected and revenue receivable classified by kinds of revenue. Such a monthly report as to revenue will afford a record of receipts and will afford also a statement of accounts receivable and revenue collectable comparable with the estimate of revenue contained in the departmental or institutional budget and summarized in the State budget. 3 § w u (A REPORT ON ACCOUNTS. « « S ^ : : : : : ; : : : : ^ feiS o pq M o a W)4) O ci boi? II a HrCO O SD « a o 1^ bo s « ^ ^ B J^ to o bo «2 c 2 c r? *« PQ h 9> m -M en O CO u (36 a o a Pi O « a "3 jo 00 ei 4) C3 o .a 00 09 ■*•> a « S CO a o bo ^-« Xi o at -«-> o ei »-i •M d o ij ■*-> ti 3 o 0) Xi ^ 5 d as *» a o •3 e .a 00 B 241 1 1 be §S o o 4-1 c 6 09 O) d "3 ,d 00 ai o .d o a 0) o d ai OAQQA 242 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 243 I Itl I 'I i Those in charge of departments and institutions will need a report at the close of each month showing the disbursements and outstanding encumbrances under each one of the allotments made by them. Such a report may properly be put in the form shown in Schedule 6. The monthly statement of disbursements and encumbrances under allotments will serve, first of all, to acquaint the officers of the depart- ment or institution with the balance in each allotment, against which further open market orders, contracts and salary assignments can be placed. The monthly statement of disbursements and of encumbrances will also be comparable with the statement of allotments contained in the departmental or institutional budget for the year and will be com- parable with the appropriations for the biennium contained in the State budget. ... Recent writers on governmental accounting have been msistent m demanding records of accounts payable. Records of open market orders outstanding, of contracts outstanding, and of salary assignments should be inclusive both of accounts payable and of contractual obliga- tions for goods and services not yet received but for which the credit of the State is pledged in a practical sense. Reports from such records must be constantly studied if administrators are to keep the expenses of a year within the legal appropriations for the period. Accounts should be maintained showing the kind of services and kinds of materials purchased under each of the allotments made for carrying out each activity, and this cost data should be brought together in such form that it may be analyzed by responsible executives and trustees in connection with any of the plans of the department or insti- tution. A perpetual inventory should be maintained of property of the department or institution, and quarterly reports should be made as to additions to permanent property and as to disposal of permanent property. It should be possible to set up an annual balance sheet from the records of revenue collectable and outstanding encumbrances and from the perpetual inventory records maintained by each department or insti- tution. In addition to the general balance sheet, it will be found desir- able to set up a separate balance sheet at the close of each year for any trust fund held by the department or institution. Not less frequently than once a year each department and institu- tion should issue a public report setting forth the receipts under each kind of revenue collected by it and the disbursements for each of its activities, together with a balance sheet giving a summary of the assets and liabilities of the institution with supporting schedules summarizing the perpetual inventory of permanent property. It is advisable that such published reports should contain statistics as to the various kinds of work carried on by the institution, so that the citizens of the State may compare the amounts expended for each class of work with the actual work accomplished. ACCOUNTING NEEDS OF INSTITUTIONAL AND DEPARTMENTAL EXECUTIVES. The responsible executives and subordinate officers and heads of departments need to have before them all of the information which we have discussed as desirable for review by boards of trustees and heads of departments. That is to say, these officers should have a report setting forth the budget passed by the General Assembly, so that they may allocate their activities with those of the State at large. The officers should have an institutional or departmental budget with monthly reports as to disbursements, outstanding encumbrances and available balances in allotments. The officers should have monthly reports giving cost data and statistics showing the kind of service and kind of materials that they themselves are purchasing for their own use. Further, the officers should have at last quarterly reports on the inventory of the property for which they are responsible. The officers mentioned will be responsible for the making out of the reports discussed under preceding headings. They should be pro- vided by the State Auditor with regulations as to accounting methods and prescribed classifications of accounts with definitions. If such accounting systems are maintained at the institutions and departments as will enable the officers to prepare and have before them the reports mentioned, it is obvious that accounts must be kept from day to day showing each one of the different classes of information. These accounts will be frequently referred to by officers, and various abstracts of data may be secured from the accounts of value in solving particular problems of administration. ACCOUNTING NEEDS OF EMPLOYES OF DEPARTMENTS AND INSTITUTIONS. The employees in each one of the sub-departments of a depart- ment or institution should be informed from month to month as to the status of the allotment made for the support of their own activities. More than this, such employees should be provided with cost data not less frequently than once a month, so that they themselves may feel a sense of responsibility for the volume and kinds of services and mater- ials they are using. Such employees will have a direct responsibility in connection with the safeguarding and maintenance of permanent property, and for that reason should have access to the perpetual inventory records of the department or institution with which they are connected wiiiic^^Lcu. ACCOUNTING NEEDS OF THE PUBLIC. The citizens of the State will be concerned, first of all, as tax payers, and for that reason can be expected to welcome and use a published State budget. The citizens should have an opportunity to examine and discuss the proposed revenue collection and the proposed appropriations before the General Assembly goes into session. Citizens should be given an opportunity to talk with members of the General Assembly. Interested citizens will avail themselves of this opportunity whether or not they have before them a complete statement of the financial needs of the entire State and of the particular financial needs of each department and institution of the State. If such a complete statement is before them, citizens can be expected to use far more in- telligence in the pressure that they bring upon their representatives in the General Assembly, and upon the Governor as to financing of par- ticular activities. i i IS • li i ! 244 EFFICIENCY AND E.CONOMY COMMITTEE. I i I j W At the conclusion of the legislative session, the General Assembly should be put squarely on record before the citizens of the State by the publication of a statement setting forth the revenue collection authorized by the General Assembly for the next biennium, and the appropriations enacted, classified in such a way that the citizens rnay understand the work that is to be carried on under the appropriation Acts. This statement may also be used by the State Tax Board in announcing its reasons to the publicT as to the fixing of State tax rates. The citizens of the State have a right to expect that the report of the State Auditor shall show the safeguarding of public money and public credit so far as the report provides a check upon the cash tran- sactions through the State treasury. This much the present report of the State Auditor does. The report of the State Auditor should include a budget summary for the biennium, and should include further an analysis of State revenue by (1) kinds of taxes by years levied; (2) various kinds of fixed licenses and permits; (3) various kinds of receipts of institutions and departments. The report of the State Auditor should set forth disbursement accounts under legislative appro- priations, so analyzed as to show the amounts of public money expended for each department and institution of the State, and so analyzed also as to show the amount of public money spent for each principal function of State government in each one of the State departments and institu- tions and for the State as a whole. The report of the State Auditor should contain a summary of the perpetual inventories^ maintained by departments and institutions, and balance sheets exhibiting the assets and liabilities of the State in summary form. The present form of the State Treasurer's report should be con- tinued for the use of the public, and, in addition thereto, the public should be given information as to the amount of money handled by each bank acting as depository of State funds. The budget reports and the reports of the State Auditor and State Treasurer should furnish the general information desired by the public. Particular classes of the public will be interested in each one of the departments and in each one of the institutions of the State. Each department and each institution should print and publish annually a financial report setting forth the revenue available for the department or institution, classified as to the source of its collection, and the dis- bursements of the department or institution on account of each one of the activities carried on by it. Such annual reports may very well give the budget of the department or institution as passed by the board of trustees or executive head at the beginning of the fiscal year, together with a statement of the budget as at the close of the year reported. Further than this the printed report of each department and institution should summarize the inventory of permanent property of the depart- ment or institution, and should present a balance sheet exhibiting the assets and liabilities of the department or institution at the close of the year. The reports of the departments or instituions.will be made very much more valuable for the use by the public generally, and especially for use by persons particularly interested in the work of a particular de- partment or institution, if the reports combine statistical data as to the activities of the institution with the statements of revenue and expendi- ture. REPORT ON ACCOUNTS. A PLAN OF ACCOUNTING FOR THE STATE.' 245 I t If the accounting needs of each of the various classes of officers and citizens that we have discussed are met, there must be established in the State a definite plan of reporting and accounting. The following system of reports is suggested : 1. Upon the adjournment of the General Assembly, the Auditor of Public Accounts shall prepare and publish schedules setting forth the budget of the State as passed by the General Assembly. This published statement may very well include a record of the action of the State board in the fixing of State tax rates. 2. The Auditor of Public Accounts shall open accounts on his books with each of the sources of revenue set forth in the State budget, and with each of the appropriation Acts at the beginning of the bien- nium, during which the budget is to have effect. 3. The State Treasurer shall open accounts with each of the State funds authorized by law, and with each of the depositaries in which money is deposited. 4. The Auditor of Public Accounts shall notify each revenue collection agency of the revenue to be collected by the agency during each year of the biennium, and shall notify each department and insti- tution of the authorization contained in the budget for its support. 5. Each department and institution of the State shall prepare an internal budget of allotments, definitely assigning a portion of the income at its disposal for the support of each one of the activities that It carries on. These internal budgets shall be formally approved by the board of trustees of each institution, or by the responsible heads of departments, before the beginning of each year of the biennium, and copies of the internal budgets so approved shall be sent to the State Auditor for the information and guidance of the State Auditor and of the Governor. 6. The financial officer of each department and institution shall open accounts with each of the sources of income for the department or institution, and with each of the allotments contained in the internal budget for the department or institution. Under each of such accounts, he shall maintain such an analysis and classification of data as shall be prescribed for his use. 7. Each department and each institution shall open and maintain perpetual inventory accounts, giving complete report of the permanent property held by the department or institution, following such classifica- tion as may be prescribed by the constructive accounting authoritv of the State. ^ 8. The financial officer of each revenue collecting agency shall report to the State Auditor from month to month the revenue collected fi ",^"^'5"d shall fully account for such revenue as having passed into Q A ^^^ ^^^^^ Auditor for transmission to the State Treasurer np f ^}^ ^^^^^ ^^ ^^^^ month, the financial officers of each de- partment and institution shall make a complete report as to the receipts and revenue collectable under each of the sources of revenue of the enClJT^"^ ""' institution and as to the disbursements, outstanding encumbrances and available balance in each of the allotments contained mv 246 EFFICIENCY AND ECONOMY COMMITTEE. REPORT ON ACCOUNTS. 247 UN i ! 'I ■ I'l in the internal budget of the department or institution. Copies of this report shall be furnished to the executive head of each department, or to the members of the board of trustees in charge of each institution, and to the State Auditor. Under the direction of the head of the de- partment, or of the board of trustees, as the case may be, the financial officer shall transmit information as to the disbursements, outstanding encumbrances and free balance in each allotment to such employees of the department or institution as may have occasion to use such in- formation in carrying out the purpose of the allotment. 10. At the close of the quarter, a report similar in scope to the monthly report shall be made by the financial officer of each department and institution, and shall be presented to the State Auditor. The State Auditor shall audit such reports and compare them with his controlling accounts. Whenever possible, such reports shall be made a matter of record in the printed minutes of the governing boards. 11. At the close of each quarter, each department and institution shall make a report to the Auditor of Public Accounts as to the perpetual inventory of permanent property of the department or institution. 12. At the close of each year, each department and institution shall publish a financial report addressed to the Governor of the State, and certified as correct by the Auditor of Public Accounts, giving a detailed analysis of the collection of revenues, and giving detailed analysis of disbursements under allotments, together with a balance sheet and summaries of the permanent property held by the depart- ment or institution. 13. At least sixty days before the beginning of each legislative session, each department and institution of the State shall prepare a statement in detail of its disbursements for the preceding biennium, and an estimate of its disbursements for the present biennium, together with an estimate of its needs for the coming biennium; and shall present this report to the budget-making authorities of the State and to the Governor of the State. 14. The budget-making authorities of the State shall combine the reports transmitted by the departments and the recommendations of the Governor into a statement setting forth the proposed financial program of the State, This report shall be printed and distributed to the mem- bers of the General Assembly and to the public at large at least thirty days before the meeting of the General Assembly. 15. At the close of each biennium, the Auditor of Public Accounts shall prepare and publish a report setting forth a summary of the ac- counts of his office, and showing the revenue collected and money dis- bursed under the budget adopted by the General Assembly for the biennium under review. This report shall include a reconcilement with the accounts of the State Treasurer, and a balance sheet with summaries of the inventories of permanent property of the State. It will be seen that this plan of reporting and accounting pro- vides (1) for a budget for the State; (2) for departmental and insti- tutional budgets under the general provisions contained in the State budget; and (3) for monthly, quarterly and annual reports by depart- ments and institutions following classifications to be prescribed by the constructive accounting authority of the State. This system of report- ing and accounting will periodically furnish the information needed by heads of departments and boards of institutions in making internal budgets for their departments and institutions, and in presenting their needs to the budget-making authorities of the State. The system will periodically furnish the data needed for a complete State budget for consideration by the General Assembly. The plan provides a com- plete report by the Auditor of Public Accounts at the close of the biennium as to the results obtained under the budget for the biennium, and provides also for a complete annual report by each department and institution. It is obvious, of course, that a great deal of constructive account- ing work must be done in providing the proper classification of rev- enue and expenditure, and in providing a proper classification for the perpetual inventories to be maintained by departments and institu- tions. The plan proposed will not increase the volume of accounts as over against the present volume of data made a matter of record at departments and institutions, and in the State offices. The plan provides for systematic reporting of data maintained under uniform classifications to be prescribed, and for the enforcement of the system by audits of the Auditor of Public Accounts. CONSTRUCTIVE ACCOUNTING WORK TO BE DONE. To provide the system of accounting described in this report, a careful study must be made of the present State organization. Charts should be prepared showing the organization of the State by units of organization, and by functions. A careful study must be made of the present laws of the State, and digests should be set up so as to show in outline form the status of the present laws as to revenue collections, disbursements, custody of public money, auditing of transactions, and care of public property, as well as to showing the financial organization of the State. The present financial reports of the State should be carefully analyzed so as to show the kinds of revenue now collected and the nature of present disbursements and present appropriation Acts. A budget classification should be set up for the State and for each department and institution. Classifications of accounts should be prescribed for each department and institution and the accounts named in such prescribed classifications should be carefully defined. The forms of schedules in reports suggested should be prescribed, methods should be provided for the auditing of accounts and reports, and care- ful study should be done in the establishment of accounting procedure, rmally, the installation of such an accounting system as the one asked for in this report demands the training of State employees so that they "lay be able to understand the requirements of the proposed system and make intelligent use of the data that the system affords. It will be seen that the problem of constructive accounting for the State of Illinois is a problem large in scope and difficult in its requirements. Something can be accomplished toward better State accounting by efforts made in the accounting offices of the departments 1 ' : ■ \ 248 EFFICIENCY AND ECONOMY COMMITTEE. i and institutions, since better accounting at any State institution or by any State department in itself tends to improve the accounts kept at other State offices. Something can also be done by recommendations by such bodies as the present Economy and Efficiency Committee, since such recommendations will be studied by those concerned with the administration of departments and institutions and it is to be expected that many of the recommendations will be adopted. The actual installation of the complete system of accounts for the State can best be accomplished, however, by the creation of a constructive accounting agency, either within the office of the State Auditor or under the control of the Governor, as a part of a State Tax Commis- sion or State Finance Commission. A permanent staff of constructive accountants of experience and ability should be employed not only to install a system but to review its operations and to effect changes needed by changing conditions. A REPORT ON i ACCOUNTING ADMINISTRATION FOR CORRECTIONAL INSTITUTIONS f I i 1 ;' II BY SPURGEON BELL It! 1 ' !| r CONTENTS PART I. Financial Information Required in the Administration of the Correc- tional Institutions 255-294 Purposes of a Departmental Classification of Accounts 255 Schedule 1. Department of Illinois Correctional Institutions 257 Appropriation and Allotments 258 Control of Appropriations and Allotments 259 Schedule 2. Appropriation Estimates 260 Schedule 3. Outstanding Liabilities and Available Balances 262 Operation and Maintenance 264 Schedule 4. Maintenance and Operation 265 Property Accounts and Inventory Control 269 Schedule 5. Property— Inventory Control 270 Schedule 6. Inventory Control over Store Accounts 271 Schedule 7. Property' Schedule for Separate Institutions 271 Incomes and Disbursements of the Prison Proper 272 Schedule 8. Cash Receipts and Disbursements of the Prison Proper. .273 Financial Reports of the Prison Proper 274 Schedule 9. Trial Balance, Income Account and Balance Sheet of the Prison Proper 274 Schedule 10. Clothing Room— Clearing Account 278 Reports of Manufacturing Industries 279 Schedule 11. Furniture Industry, Monthly Summary 280 Schedule 12. Manufacturing Industries, Consolidated Annual Report 282 Reports of the Farm and Garden 283 Schedule 13. Operation and Maintenance Expense for Farm and Garden 285 Schedule 14. Comparative Annual Report of the Farm and Garden... 285 Prisoner's Deposits 286 Financial Reporting and Control in the Correctional Institutions Com- pared with that secured under the Proposed Outline 288 Schedule 15. Comparative Appropriations of the Correctional Institu- tions of Illinois. 288 Schedule 16. Comparative Expense Statement of the Correctional In- stitutions 289 Schedule 17. Accounts for Industries 291 Summary 292 PART II. tatutory and Proposed Accounting Requirements or the Correctional Institutions 294-298 Summary of Accounting Requirements of the Bill and General Statutes 296 ;l PART III. Schedule of Defined Accounts for the Departments and Industries of THE Correctional Institutions 298-336 Schedules of Operation and Maintenance Accounts by Departments 298 Departments Supported Mainly by General Revenues 303 Departments Supported Mainly by Earnings 311 Clearing Departments 320 Schedule of Property Accounts by Departments 325 Departments Supported Mainly by General Revenues 328 Departments Supported Mainly by Earnings 331 Clearing Departments 334 PART IV. Exhibits 337-339 Exhibit 1. Form of Exhibits for Food Served in all Kitchens and Dining Rooms 33/ Exhibit 2. Extraordinary Repairs and Property Additions— Confinements and Discipline of Male Prisoners 338 Exhibit 3. A Suggested Form of Memorandum Ledger for Outstanding Or- ders, and Available Balances 339 CHICAGO, ILL., October 1. 1914. Dr. John A. Fairlie, Director of the Efficiency and Economy Com- mittee, Urbana, III. sir: I have the honor to present herewith a report setting forth an Outline of Accounting and Financial Administration for the Cor- rectional Institutions of the State of Illinois. This report consists of four parts as follows : Part I, Financial Information Required in the Administration of the Penal Institutions ; Part II, Statutory and Pro- posed Statutory Accounting Requirements of the Penal Institutions; Part III, Schedule of Defined Accounts for the Departments and Industries of the Penal Institutions ; Part IV, Exhibits. I am indebted to Professor George E. Frazer, C. P. A., Comp- troller of the University of Illinois, for valuable suggestions in regard to the content of the report. Mr. T. P. Waters rendered valuable assistance in the collection of information in regard to the present plan of accounts in the penal institutions. I am also under obligations to the wardens of the two penitentiaries, the superintendent of the Reformatory and their chief clerks for their cooperation in furnishing all needed information in connection with the preparation of this report. Respectfully submitted, Spurgeon Bell.. ^i A REPORT ON ACCOUNTING AND FINANCIAL ADMINISTRATION FOR CORRECTIONAL INSTITUTIONS BY Spurgeon Bell. I ii PART I. FINANCIAL INFORMATION REQUIRED IN THE ADMINISTRATION OF THE CORRECTIONAL INSTITUTIONS. PURPOSES OF A DEPARTMENTAL CLASSIFICATION OF ACCOUNTS. The authorities who need financial information about the correc- tional institutions are; (1) the superintendents and officers in immediate charge of operations; (2) the managing officers who are charged with the immediate responsibility for all operations in the respective institutions; (3) the managing board charged with the responsibility for the supervision of the work of the various insti- tutions; (4) the General Assembly, which appropriates money for their support and makes laws and regulations to be carried out by the executives; (5) the Governor, who has both legislative and executive responsibilities in connection with their administration; and (6) the people of the State who hold the Governor and the General Assembly responsible for their stewardship. It is the function of a set of accounts to furnish information and data, which will supply the needs of these various officers and authorities charged with responsibility. The superintendents or officers in charge desire to know each month the results of operations in their departments. If the depart- ment has expenses and no income the departmental officer in charge should have a classified statement of its expenses placed before him trom time to time. If the department has an income the officer in charge should have a statement of the income and expenses of his department at frequent intervals in order that he may check unneces- sary expenses and enhance the income or service of his department. V^^ u "°^ ^^ sufficient for him to know that the institution as a Whole had shown an increase in expense without adequate improve- ment m the mcome and service unless he also had data about his own department that would indicate his own responsibility for the showing made. For departmental officers, information must be classified under departmental captions and furnished to the officers in charge. 1 , It : 256 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 257 The warden or superintendent must have financial information classified by departments because he could take no action in the im- provement of the service or reduction of the expense without knowing first what departmental officer was responsible for waste, inefficiency, or overdraft of the funds allowed for disbursement. A managing board, which asks the General Assembly for funds to support the penal institutions, and holds the warden or superin- tendent responsible for the results obtained must make its estimates for each institution on the basis of the requirements of the separate departments and must judge of the efficiency of the managing officer by the results secured in the separate departments. The General Assembly must have the costs of operation and main- tenance of the separate departments in order to judge whether the estimated requirements for support are reasonable or excessive. The Governor must also judge of the efficiency of the supervising board by the results shown in the operations of the separate depart- ments. He requires also the same information, which the General Assembly needs, for the consideration of appropriations. The people of the State judge of the efficiency of an institution by the work of the warden or superintendent through the separate departments. Costs of goods or services furnished by the separate departments must be reduced to a per capita basis and compared with similar costs for other institutions before the average citizen can reach a conclusion in regard to the services of the institutions in comparison with operation and maintenance costs. A comparison of the costs of a given department in two institu- tions involves a uniform classification of departments for both. If one institution reports the cost of food purchased for the whole insti- tution under an account while another reports the cost of food for the convict kitchen as a separate total, the data furnished, even if reduced to d. per capita basis, cannot be compared advantageously. If one insti- tution reports the cost of food for convicts and the expense of the convict kitchen as an undivided sum while another reports the cost of food as a distinct item but does not give the other operation costs of the convict kitchen except as combined with sundry outlays, it is impossible to compare the costs of food per capita furnished for prisoners. But if both institutions report the cost of food served for so many meals and report as a separate total the operation and main- tenance costs of the convict kitchen and dining room the average citizen has a basis of comparing the costs. For comparative purposes there must be a uniform classification of departments and also a uni- form classification and definition of the accounts employed in the departments for which comparative data are desired. The word department, as used above, refers to a distinct operating unit furnishing a commodity or service to the officers or inmates of the institution. If the department concerned furnishes the commodity or service to other departments and only indirectly to inmates and officers it is called a clearing department. There may be a number of depart- ments under one officer. The production of a distinct commodity, service or class of commodities is taken as the unit of operation. The ! boiler room is a department because it produces steam. The engine room is a department because it converts the steam into motive power, which is again a service to be sold to departments. Both boiler room and engine room are clearing departments. The classification of departments for the correctional institutions of Illinois is found in Schedule 1 below. Schedule 1. DEPARTMENTS OF ILLINOIS CORRECTIONAL INSTITUTIONS. DEPARTMENTS SUPPORTED MAINLY BY GENERAL REVENUES. I. General Administration. 1. Board of Prison Administration. II. Prison Administration. 2. Warden or Superintendent's Office. 3. Warden House Building. 4. Institution Grounds. 5. Warden or Superintendent's Suite. 5.1. General Accounting Office. 6. Officers* Substistence. 7. Women's Prison — Officers' Building. 8. Women's Prison— Officers' Kitchen and Dining Room. 9. Women's Prison— Confinement and Discipline of Prisoners. 11. Confinement and Discipline of Male Prisoners. 12. Parole of Prisoners. 13. Receiving and Discharging Prisoners. 14. Institution Teams and Vehicles. 15. Institution Automobiles. III. Maintenance of Male Prisoners. Subsistence. Sanitation. Laundry. Barber Work. Miscellaneous Furnishings. Farm and Garden — Prisoners' House. 20.2. Farm and Garden — Prisoners' Subsistence. IV. Maintenance of Female Prisoners. Subsistence. Sanitation. Laundry. Miscellaneous Furnishings. V. Religious and Educational. Religious Instruction. General Education. Trade Schools. VI. Outside State Services. Camps — Camp Dunne. Stone Department. DEPARTMENTS SUPPORTED MAINLY BY EARNINGS. .J . VII. Farm and Garden — Industry. Admmistration. Officers' Subsistance. Automobiles. ii\ Jffachinery, Implements. Vehicles and Harness. Va gower Machinery. ''^- Farm Teams. 16. 17. 18. 19. 20. 20.1. 21. 22. 23. 24. 25. 26. 27. 28 29 30. 31. 32. mv 258 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 259 \' 35. Land and Improvements. 36. Com Crop. 37. Hogs. VIII. Manufacturing Industries. 30. Furniture. 41. Rattan or Reed. 42. Printing. 43. Clothing. CLEARING DEPARTMENTS. IX. Power Plant and Repair. 44. General Administration. 45. Boiler Room. 46. Electric Generation Plant. 47. Steam Air Cpmpresser. 48. Engine Room. 49. Electric Air Compresser. 50. Heating Mains. 51. General Repairs. 52. Store. ]" X. Other Store Rooms. 53. Subsistence Store Room. 53.1. Feed Bam. 54. Fuel Store. XI. Miscellaneous Products and Services. 55. Ice Plant. 56. Laundry. 57. Clothing Room. 58. Convict Kitchen and Dining Room. 59. Blacksmith Shop. 60. Foundry. 61. Barber Shop. 62. Hospital. 63. Officers* Kitchen and Dining Room. . The numbers given the departments are the same as the numbers given them in Part III so that the schedule for any department can be referred to by the use of the departmental numbers above. For the property accounts the last two figures of the department number are the same as the two figures for the department in operation and maintenance, but the figure 1 is prefixed so as to be able to distinguish the name of the property account from that of operation and maintenance for the same department. APPROPRIATIONS AND ALLOTMENTS. Legislative appropriations should have as their basis tv^ro main sets of data : ( 1 ) the estimates of the requirements of the separate insti- tutions for the two years to be covered by the appropriation called for; and (2) the actual expenditures during the preceding two years arranged under the same captions as the estimates. Parallel columns showing this information would form a basis for a discussion of the reasonableness of the estimates made. These estimates should be made by departments or operating units. If a warden or superintendent asks for $250,000 or more a finance committee of the General Assembly should not be satisfied with knowing that this is an increase of so much over the appropriations of the preceding biennium. It should ask for a statement of the expenditures by departments, comparisons with expen- ditures in other years, and an explanation of why the excess is required. In this connection it would also be interesting to set up a comparison between preceding estimates and actual expenditures from appropriations based thereon. The schedule below can be readily modified to furnish the additional information if it is desired. The clearing departments included in the miscellaneous group of departments used in Schedule 2 would require an allotment for inven- tory and outlay for the month. They would not require more than this working capital because their funds are renewed from month to month by charges for goods and services to other departments. For example, the subsistence store charges to the allotment account of convict subsistence the cost of all supplies furnished to the convict kitchen and dining room during the month plus its due portion of the other operating costs, which are prorated on the basis of the costs of materials and supplies furnished. It could prorate the cost of the inventory on the same basis, but the allowance for an inventory or working capital is, perhaps, more satisfactory since it gives to the departments a check on the charges made against their respective allot- ments. After the General Assembly has made appropriations for the penal institutions on the basis of the estimated requirements, the Board of Prison Administration will make its monthly allotments to the respec- tive departments on the basis of monthly estimates in the same form as that of Schedule 2. These monthly estimates should have exhibits attached showing the amounts and qualities of each class of goods and supplies desired. , It will not be necessary for the Board of Prison Administration to keep allotment accounts in the same detail in which they are kept in the various institutions. It can merely credit the total of the departmental lists of vouchers which come from the institutions from time to time to the appropriate allotment accounts, maintaining a con- trolling account in this way over each allotment. CONTROL OF APPROPRIATIONS AND ALLOTMENTS. In the operation of State institutions appropriations and allotments do not necessarily serve to restrict expenditures within the allowed amount. The State officer authorized to purchase supplies for an institution or department incurs a liability when he makes a sup- plv order. The State auditor can prevent the payment of these bills when purchases so made exceed the appropriations, but the bills may he accumulated in large amounts. For example, outstanding bills of over $50,000 have been carried over bv institutions with a total appro- priation of $250,000 to $300,000. When there is no more definite control of appropriations than that secured by the auditor's check on vouchers presented, the Legislature's appropriation may, in effect, be exceeded by 20 per cent or more. These excess purchases may be made without the knowledge that they do exceed the allowed amount unless the warden or superintendent, the purchasing agent, and the supervis- ing board have regular information available in regard to outstanding orders and outstanding bills. ' •Ai^*^*^"^^"* showing outstanding bills, outstanding orders, and ^ Au ^^^^"^^s ^i^^ that shown in Schedule 3 below should be at fif t: ^^^'^^ *^^ warden or superintendent and the supervising board at the beginning of each month. The warden or superintendent should diso have this balance available at all times in connection with approv- ing orders for supplies. ^ m 260 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 261 - to w:3 >22 S £ I 1-1 u o IS M M e a < G O •c T3 a d o CA O 4> •+3 bo, (« " a a •c C ♦^ 3 (0 » O qC QQ O 1^ 4-* wo, <" C - •a Q, 4-» In 3 -^ .. M bob — * ** ^ 2 «H g "^^ r*^ T^ • • •- ? « •2 S2 f5 d d d (-• cQ, CM^ d CTJ o o -, o ^ u |4 Id ben's rt d <«, d o d c d « ^ t d--« a* - _*« d 2i d t-i fl) '2 6 CJ2-S « o «2 d£L d^« ..-t TT ■♦-» w d o* • <-• Ml o rtO •c P4 M • «4 "a p« d to ^ o U O bo i4 4-» Of 4> bo yj^' fe d:S rt ^ rt 4) W;^ ^^ 2 O 4^ 3 CI- 3 d 3 .S-o on o go oi «> 1 aa d o ,d so II c o t3 eg X •mC/J rt C 1^ " E '^ *^ r\ 0J3 oo « «-■ Lu -r" »-i 03 CO u CO 3 CO o ?•« 0) d "» CO (o « > •^tJ d rt d r *« ?? H d 4-» »2 en 0) a; pqtEl 3 3 Uc/) o 8 o • d • o u d >4-» o ^ d •4-» rt 2 ■4-> bo d a d-o d • ^4 d a Q rt •OTJ d < d o ..-1 d d s o v V W) .^4 U (l4 CO > v4 o« 3 CO » > 4-» CO CTJ 4-» rd X CO .1-1 (I) *S*S 3 ^>< X X (U CO V be Ih d o .ao t. a <" d-^ o to •c 1:3 Oh go >»a Ui ^3 a> ;-■ CU O o a P^ X W 13 d d d o a .1-1 4.J c; (O +-> d a „ o,^ d 3 t« S 3-3 ^ <" ^.a d'- .5 •" k •i-t Q) •l-t«lH (^ X o ^« 2^ 08 O" « 0) ti •^« "•1-1 O cj a u o o •rH £S »^ — CO «t-i o 5S ^S 03 O 4J 03 OQ o «i2 ^ Oj si CO.Q •IH «l U ^ OJ rj ••H OZftj A ^ d xo- O 0) ■«> I ; •h I ' ; 262 il 11 c4 (A bi U Z < < M < > Q < t/5 W H (-1 _] I— I P3 < O o < H H O to u ^ bo > O a « •-3 ^ r. ■♦-» to o .S c c c bo c •«-• ^ o OPQ T3 *- ^1 ;2 ^^ 3 bO^ ^•5 EFFICIENCY AND ECONOMY COMMITTEE. ;3 CO (A 0^ 4> U c o |||.S c «^ o 2 5 ^, c S o S 3 <« m ^ CO (/) S '^ -c c ° *« ^'*-> to o to fi O C cS-i3 C"to c bo'^ S c 3iJ "{""to oo 9 o to (« •r" ..^ «-• tl (O (O c 3 (U E 3 gs 3 o u to .2-2^ 2 g.«».rt t?."5 " "H 3 " ** E E o o 8 o (O bolS ^ 4» 3 4, O j3 3 to fco o rt - vi 3 3 E'C*^ 3*0 rt O ftO O 3 4J to 3 rt bfl Q 3 cj t; ?« i 3 to S ^'o 2 > 3 3 3 ^ « *a3 •"« ^^"^ CO 3 O .3 «« h c a> 3>^ 3 O «" S «^ S-«.t: 3' n: .2 o I- CL, 0. o us «- CO O, 4j o o 3.-J: . £* •- E « o.g g^ CO 2j2^ E-o c o ^ c 3 "o ^ ■■ .2 o >;>;g 3 rt>T3-0 • v^ iix 3 3b d P P ^ b: c ctJ o •5, c > c c HH Oil— ( bo Eb 3 00 3 M 3 Ix 4>l P_2^ *»•?:; to *-> o s-S 2 ** a; © t p. o 0) .a 0) h o ed ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 263 VA The estimate of requirements for the succeeding month, which is required to be made at the middle of each month, should show the allotments for the month then current and the incumbrances against each account. In like manner the monthly report of expenditures by each institution should show the allotments made for the month cov- ered by the report and the encumbrances then outstanding against each allotment. This expenditure report should be made and be in the hands of the Fiscal Supervisor of the Board of Prison Administration not later than the tenth of each month succeeding the month for which such report is made. The control of appropriations and allotments also requires a sys- tem of institution transfers which is now lacking at the institutions. The various clearing departments must be able to charge the cost of supplies and services against the allotments of the departments to which they are furnished. This plan of financial administration pro- motes economy in the departments, which are restrained from excessive purchases by the existence of an appropriation and allotment control and a charge against their allotments of the cost of all goods and serv- ices purchased. They are made fully accountable for every expense which their departments incur. In the case of all clearing departments the charge for goods and services furnished to other departments should be based on their cost to the clearing department. In the case of departments or industries supported mainly by earnings a charge by the department equal to current prices for similar goods on the open market has distinct advan- tages in affording a test of the effectiveness of the productive activity of the prisoners and of the managerial capacity of the superintendent or officer in charge of the industry in question. The cost of producing certain commodities and services may not be commonly known but when an industry is allowed credit for the earnings made on the basis of a charge equal to current market prices, the industry justifies or condemns itself financially by the showing of earnings w' ich it makes. In a reformatory an industry operated at a loss may be still justified by its educational value, but the financial outcome is always an impor- tant consideration. If the educational value of two industries is approximately equal the one producing larger earnings is the more advantageous. For the most part, the clearing departments are common to the various penal institutions. The efficiency of these departments is there- lore best tested by a uniform system of accounts which will show com- parative costs for the various institutions. It is not advantageous to transfer these comomdities at any other price than their cost to the clearing department because they are not commonly sold on the open "market. Comparative results and official accountability are best secured by the comparative unit costs shown by the reports of the various penal institutions. %% 264 m§ ^ iiii i EFFICIENCY AND ECONOMY COMMITTEE. OPERATION AND MAINTENANCE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 265 The operation and maintenance accounts serve the purpose ( 1 ) of presenting to the departmental officers a classified statement of the costs of operation and maintenance in their departments, so that they will be able to hold their subordinates and the prisoners responsible for a reasonable performance; (2) of furnishing data to the warden or superintendent so that he will be in a position to require his sub- ordinate officers to show reasonable administrative results; (3) of furnishing information to the Board of Prison Administration or supervising body to serve both as a check on administrative costs and as an indication of the requirements for the future ; (4) of furnishing data to the General Assembly so that it may be informed of the reason- able financial requirements of the penal institutions; (5) of furnishing to the Governor information upon which he may act in preventing wasteful management on the part of those having a more immediate supervision and, through the cooperation of the General Assembly, make reasonable provisions for an appropriate development of the departmental activities of the respective institutions; and (6) of furnishing to the citizens of the State a basis for holding the Governor and the General Assembly responsible for preventing waste and pro- viding for the appropriate development of institutional activities. The officers in immediate charge, the warden or superintendent, and the supervising board, should receive reports of operation and maintenance costs in the form set forth in the Operation and Main- tenance Schedules of Part III. These administrative officers should also require special exhibits showing more detailed costs in connection with any of the departmental accounts where further inquiry seems to be required. The character of these additional exhibits may be judged by reference to Exhibit 1 Part IV, and Schedule 10 of Part I. The character of operation and maintenance data required by the General Assembly and the Governor has already been set forth in Schedule 2 of Part I. Schedule 4 below will serve as a comparative summary of information useful to the General Assembly and all admin- istrative officers and particularly useful to the citizen who wishes to see in comparative form the comparative operating costs of the penal institutions. SCHEDULE 4. MAINTENANCE AND OPERATION. 111. Per So. Per 111. Per , „ . * J . . St. Pen. Inmate 111. Inmate St. Ref. Inmate Board of Prison Admimstra- Cap. Pen. Cap. Cap. tration. Salary and wages of boarda Other salary and wagesa ** * Average number of pris- oners employed^ Other operaton and main- tenance* Prison Administration. War- den's or Supterintendent's Office. Salary of warden or supt Other salary and wages Average number of prisoners employed Other operation and main- tenance Institution Grounds. Salary and wages Average number of prisoners employed Other operation and main- tenance , Prison Administration. War- den's or Supterintendent's Suite. Salary and wages Average number of prisoners P^y^^y^^ • Hfu?, 1* ;•••••. other operation and mam- , tenance .... Prison Administration. Offi- cers' Kitchen and Dining Room; Salary and wages Average number of prisoners Foodc ^ uther operation and main- tenance ^ Prison Administration. War- den's House Building. Average number of prisoners employed Other operation and main- . tenance Prison Administration. Worn- ???,..P risen. Officers' ouilding. Average number of prisoners employed Other operation and main- tenance ... '^^^y^^^^^^^^^ ^' '^^ total operating and main- °umber™'wor'kfnThour''8\^n'?he day.^''''^'''^ *^' °""'*'^' ^^ ^^"' employed by the c- Per capita of officers instead of inmates. N *f i 1 ■ ' ■ fe f 1 I 266 EFFICIENCY AND ECONOMY COMMITTEE. SCHEDULE 4. MAINTENANCE AND OPERATION. Prison Administration. Wom- en's Prison. Officers' Kitchen and Dining Room. Average number of prisoners employed 111. Per So. Per 111. Per St. Pen. Inmate 111. Inmate St. Ref. Inmate Cap. Pen. Cap. Cap. Food^ Other operation and main- tenance Prison Administration. Wom- en's Prison. Confinement and Discipline. Female Prisoners. Salary and wages. Average number of prisoners employed Other operation and main- tenance Prison Administration. Gen- eral Accounting Office. Salary and wages Average number of prisoners employed Other operation and main- tenance Prison Administration. Con- finement and Discipline of Male Prisoners. Salary and wages Average number of prisoners employed Other operation and main- tenance Prison Administration. Parole of Prisoners. Salary and wages Average number of prisoners employed Operation and maintenance.. Prison Administration. Re- ceiving and Discharging Prisoners. Salary and wages Average number of prisoners employed Other operation and main- tenance Prison Administration. Insti- tution Teams and Vehicles. Salary and wages Feedd Average number of prisoners employed Other operation and main- tenance Prison Administration. Insti- tution Automobiles. Salary and wages • • • • • ••••••• ••••• ••••••• • • • • • • • • • c. Per capita of officers instead of inmates. d. Feed per capita of stock instead of per capita of inmates. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. SCHEDULE 4. MAINTENANCE AND OPERATION. 267 Average number of prisoners employed Other operation and main- tenance Maintenance of Male Pris- oners — Subsistence. Average number of prisoners employed Food served Other operation and main- tenance Maintenance of Male Pris- one r s — Laund ry. Average number of prisoners employed Other operation and main- tenance 111. Per St. Pen. Inmate Cap. So. Per 111. Per 111. Inmate St. Ref. Inmate Pen. Cap. Cap. • • • • • Pris- Maintenance of Male oners — Sanitation. Salary and wages Average number of prisoners employed Other operation and main- tenance Maintenance of Male Pris- oners — Barber Shops. Salary and wages Average number of prisoners employed Other operation and main- tenance Maintenance of Male Pris- oners — Miscellaneous Fur- nishings. Clothing ^ Shoes Hats and caps Baths Other furnishings Average number of prisoners employed Other operation and main- tenance Maintenance of Female Pris- oners— Subsistence. Average number of prisoners employed Food served V.V. . Other operation and main- tenance Maintenance of Female * Pris- oners— Sanitation. ^alary and wages Average number of prisoners employed er operation and main- tenance 268 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 269 1 i% lit f SCHEDULE 4. MAINTENANCE AND OPERATION. m 111. Per So. Per 111. Per St. Pen. Inmate 111. Inmate St. Ref. Inmate Maintenance of Female Pris- Cap. Pen. Cap.' Cap. oners — Laundry. Average number of prisoners employed Other operation and main- tenance Maintenance of Female Pris- oners — Miscellaneous Fur- nishings. Clothing , Shoes Hats and caps Baths ,,[[ Average number of prisoners employed Other operation and main- tenance Religious and Educational — Religious Instruction. Salary and wages Average number of prisoners employed Other operation and main- tenance ." Religious and Educational — Trade Schools. Salary and wages Average number of prisoners employed Material for manufacturing * or handicraft Other operation and main- tenance Farm and Garden — Prisoners' House. salary ano wages •.•..•••••* ••••• ••••••• ••••• «•••••• ••••* ••••••• Average number of prisoners employed Other operation and main- tenance Camp Dunne. Average number of prisoners employed Subsistence Other operation and main- tenance "■ S^one Department. Average number of prisoners employed Power — steam and electric Other operation and main- If it is found desirable an "interest burden" item and a "rent burden" item may be added to each department as a statistical item, calling attention to property invest- ment involved. See Part III, pp. 64, 69. PROPERTY ACCOUNTS AND INVENTORY CONTROL. The penal insti-tutions ovvrn durable property wrorth more than $4,000,000. A large portion of this consists of live stock and movable tools, implements and office equipment. The means for requiring ap- propriate accountability for the use and preservation of this property is no less important than the means for auditing the disbursement of funds. The departmental officers are chiefly responsible for the prop- erty charged to their departments. The accounts, therefore, must show the amounts of property of various kinds charged to the separate departments. The amount of property charged to the several departments is also significant as indicating the total investment required by the State in the furnishing of the departmental commodities and services. If the farm and farm property are worth $500,000 it is significant to bear this fact in mind when the earnings of the farm are considered. The educational value of the operations of the farm is also an important factor, but that alone does not serve to justify or condemn a venture. Provided the educational value of two ventures is approximately equal the earnings in comparison with the total investment might become the deciding factor in justifying the existence and maintenance of one of such enterprises instead of the other. The General Assembly, the Governor, and the supervising board are ultimately responsible for investment in these properties and for their use and preservation. These representatives and officers require a classification of property by departments both for the purpose of maintaining responsibility for its preservation and for the purpose of properly directing the development of institutional functions. The classification of departments for property accounts is the same as that for operation and maintenance accounts. The detailed classi- fication of proper accounts is set forth in Part III. These accounts are defined in the introduction to that Part or in connection with the listed accounts. The taking of inventories by departments under the same accounts as those shown in the operation and maintenance schedules and the property schedules represents the means by which property control is maintained. The operation and maintenance accounts under which inventories are taken are those representing outlays for supplies. Schedules 5 and 7 below show the information required for a control over the durable property accounts. Schedule 5 shows the amount of property of each kind for ne several departments which has been worn out, lost or is other- wise unaccounted for. The shortage and loss column for table urmshings would show total breakage, shortage and loss of this dss ot property. An unreasonable loss under the caption should tho^P ^f^"i,^ ^^^^"^^ exhibit comparing the detailed inventories with of tM.i ^"^ Preceding year and showing an analysis of the purchases whirh fl *?^"^shings. These data would reveal the commodities in to dk I occurred and place the supervising officer in a position discover the cause of the unusual loss. Any other of the above i ] J i i 1 1 J i. i : f hi i' \ I i 270 * EFFICIENCY AND ECONOMY COMMITTEE. accounts might be treated in the same way. The property accounts indicate the cost of property which the books show to be charged against the respective departments. The inventory shows the actual cost of such property on hand. The difference or the shortage and loss should then be credited to (or deducted from) the property account in question. The detailed inventory will also show under each property account the detailed number and cost of items of each kind of property owned. The folio references in the schedule refer to the ledger or inventory record where the data used may be found in detail. SCHEDULE 5. PROPERTY — INVENTORY CONTROL. Property Over, Required by Property Short- Folio Property Folio On Hand Folio age Acct. at Cost and Board of Prison Administra- Loss tion : Furniture and fixtures Office equipment Sundry Warden House Building: Building Furniture and fixtures Beds and bedding* Heat, light and water Machinery and equipment Sundry Officers* Kitchen and Dining Room: Furniture and fixtures Kitchen equipment Table furnishings Sundry Schedule 6, below, represents certain sample accounts showing the result of an inventory control of stores. When supplies are charged into a store and credited out, the inventory should equal the balance of the controlling account for the store. In practice errors in keeping the record and in measuring the amount of supplies charged out cause some discrepancy in these items. If this discrepancy is very large, as compared with a reasonable margin of error, detailed analysis should be made showing store charges and credits and locating the commodity or commodities in which the loss occurred. In the case of the coal store or the feed barns no analysis is required. In the case of the subsistence store no analysis would be required if a perpetual inventory record were kept of each commodity. Since this record should be kep Df the more important commodities there would only remain io| analysis the miscellaneous commodities for which the perpetual inven- tory record was kept as a total. The same principle applies to tn material stores of the industries. A perpetual inventory of the pn"- cipal items of material and a controlling account over the inventory as a whole should be maintained. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 271 There are always certain commodities such as stationery and office supplies of the various departments for which no perpetual inventory is kept. The inventory of these supplies should be taken under the account names to which they are charged at the time of their purchase. SCHEDULE 6. INVENTORY CONTROL OVER STORE ACCOUNTS. Folio Store Balance Inventory at Cost Folio Over, Shortage and Loss Coal Supplies Feed Bam Com Oats Power House and Re- pair Store Subsistence Store: Meats Groceries, etc Furniture Industry; Material store Inv. Tot. Adda Sept. Depr. Depr. Pres. Dur. 30th Liab. Liab. Val. Yn « • • • • • • • • SCHEDULE 7. PROPERTY SCHEDULE FOR SEPARATE INSTITUTIONS. Board of Prison Administration: Furniture and fixtures Office equipment Office supplies Inventory — currrent supplies Inventory — current materials Warden's Office : Fuftiiture and fixtures Office equipment Inventory — current supplies Inventory— current materials Warden House Building: Building Furniture and fixtures Bed and bedding Heat, light and water equipment. . Machinery and equipment Inventory— current supplies Inventory— current materials Officers' Kitchen and Dining Room: Building Furniture and fixtures..!'.......*.*. Kitchen equipment [ Aable furnishings Inventory— current supplies ....'..'.' inventory— current materials # • • • • • • • • • 272 EFFICIENCY AND ECONOMY COMMITTEE. « ' •i ■I • !l f 1 1- 1 (I ! ■ 1 ! 1 1 ' r If it is desired to take notice of the depreciated condition in which the properties are found this may be done by setting up in parallel columns opposite each property account (see Schedule 7) a depreciation liability against the property on hand. This can be done for all machinery and durable property at a regular depreciation rate on the original cost. In setting up such a depreciation liability the depreciation account of the appropriate department of the operation and maintenance accounts should be debited with the amount credited to the depreciation liability account. In case a machine or a piece of durable property is consigned to the scrap heap the appropriate prop- erty account should be credited and the depreciation liability account for this class of property debited with the original cost of the prop- erty so scrapped. By this means the present value of the property scheduled under any account will always be the book value of the property less the depreciation liability. Without a treatment similar to this the property accounts of an institution will rapidly get out of date and become of little value in indicating the worth of the perma- nent property on hand. This property schedule for the separate institutions should then be followed by a comparative schedule showing present value with the same headings on the left but with headings at the top as follows: 111. State Inmate So. 111. Inmate 111. State Inmate Pen. Per Cap. Pen. Per Cap. Ref. Per Cap. This schedule would give the property investment per capita by departments in each of the three institutions in parallel columns. INCOME AND DISBURSEMENT OF THE PRISON PROPER. In the case of payments between departments by institution trans- fer of allotments no special credit records of the character of %ales need to be kept since the transfers are fully accounted for in the credits to the department furnishing the commodity or service and the debits to the department which receives it. In the case of sales which bring a pecuniary income to the institution a special sales account should be set up to account for the income to be received on accounts receivable. For the prison proper the incomes from sales are small, but they should be set forth and transmitted to the State Treasurer at the end of the month to tlie credit of the institution, subject to the allotment of the Board of Prison Administration, provided the General Assembly appropriates the miscellaneous incomes as a part of its gen- eral appropriation. Similarly the income received for the board of United States prisoners should be credited to the sales account of the convict kitchen and dining room. The miscellaneous sales at Pontiac are comparatively large because of the output of the trade schools and manual training department. In every annual report of the prison proper the account of income from all sources should be fully set forth. In Schedule 8, below, a form is suggested for setting forth such incomes. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. SCHEDULE 8. CASH RECEIPTS AND PAYMENTS OF THE PRISON PROPER. Annual Statement. 273 Institution Receipts. Board of Inmates: United States prisoners Compensation for Prison Labor: Income for labor in camps Sales Receipts: Food Convict kitchen and dining room Heat, light and water Power Repairs and improvements Officers' k'tchen and dining room Farm live stock Convict clothing Visitors' tickets Sundry Miscellaneous Receipts : Interest on bank balances Rent" Refunds Sundry Total institution receipts of prison proper General Revenue Receipts: Balances end of preceding year Appropriations from general revenue for year Total general revenue receipts of prison proper Grand total receipts of prison proper. . .' Vouchers approved year ending Sept. Total appropriations and balances Total vouchers approved Balances reverting to State Treasurer! 111. S. P. So. 111. P. 111. S. R. Operation and Maintenance. Special. Total appropriations and balances total vouchers *'* Balances reverting to State Treasurer. *. ....,....'. ,.,...[.'. ] * ','.'.',.'. [ ] ', There should then follow this general schedule of receipts and aisbursements a detailed comparative schedule showing the total vouchers approved against the allotments of each allotment account 01 the prison proper for the year. viH '^f ^ ^^^^ proposed by the Efficiency and Economy Committee pro- V aes tor a petty cash account to meet urgent local requirements of en ^^^P^^^^^^ mstitutions. But all payments from this fund will be overed at the end of the month by a voucher for the petty cash fund lavor of the managing officer. This voucher should distribute the so t^^. u ^^^^ ^"^ allotment accounts to which it is chargeable will K ■^^ """^ °^ ^^'^°" Administration and the State Treasurer cJh r J^\}^ properly administer the appropriations. This petty asn tund will be regularly audited by the Auditor of Public Accounts. f 1 274 m . A EFFICIENCY AND ECONOMY COMMITTEE. FINANCIAL REPORTS OF THE PRISON PROPER. At the end of the year a general income account and balance sheet should be constructed for the prison proper. This serves to bring together in a summary all the accounts of the prison proper, testing by means of the trial balance the equality of charges and credits and balancing the accounts in a form showing the financial position of the institution. Such a statement is also useful in connection with the audits of the financial operations of the prison proper. Preparatory to making this report a trial balance is first con- structed in which the balances of all the departmental accounts and of the general accounts are brought down. In connection with closing the accounts into a trial balance and a general balance sheet, capital or liability accounts with the general des- ignation of State of Illinois should be created. These accounts are credited with all appropriations from general revenue and with all sales of the departments of the prison proper. The inventories of current supplies may appear on the debit side of this trial balance made preparatory to closing, provided they have been properly credited to the appropriate operation and maintenance accounts. The con- trolling accounts of the purchase ledger for the prison proper should show the total of credits to accounts payable. The accounts receiv- able and cash on hand are the main additional items to be accounted for. Schedule 9. Trial Balance, Income Account and Balance Sheet for the Prison Proper. Trial Balance. Dr. Cr. Income : State of Illinois — Revenue Appropriations and Balances State of Illinois — Institution Sales : Food Heat, light and water Power Repairs and improvements.... Trade schools: Manual training Blacksmith shop , State of Illinois — Miscellaneous Incomes: Interest on bank balances Refunds Sundry Operation and Maintenance: Board of Prison Administration: Salary and wages Stationery, office supplies and printing. Postal supplies Heat, light and water , Ordinary repairs , Extraordinary repairs , Depreciation and loss , Sundry ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. Dr. Prison Administration. Warden's Office: Salaries and wages ' Stationery, office supplies and printing ' Postal supplies Travelling expenses Depreciation and loss Sundry :•••.•• Prison Administration. Institution Grounds: Salary and wages Food supplies Laundry : Administration and operating costs , Laundry supplies , Prison Administrations Officers' Subsistence: Food served Administrative and operating , Administration and maintenance of store Trade Schools. Manual Training: Stationer>% office supplies and printing Heat, light and water Materials for production Ordinary repairs Extraordinary repairs Depreciation and loss Sundry Prison Administration. Women's Prison: Officers* Building: Heat, light and water Seeds, plants, etc Ordinary repairs Extraordinary repairs Depreciation and loss Sundry Property Accounts: General Administration. Board of Prison Admin stration : Furniture and fixtures Office equipment Sundry * Current Inventories: Stationery and office supplies Postal supplies !.!!!!!! '. ..... Sundry '.!!!!!!!! '.' Prison Administration. Warden or Supterintendent's Office : Furniture and fixtures Office equipment ......... .....'. Kitchen and dining room ...... Current inventories: Stationery and office supplies Postal supplies sundry Prison Administration. Institution Grounds : Land Improvements on land Sundry Prison Administration. ' Officers' * kitchen* and bining' Room : furniture and fixtures Kitchen equipment ....... Table furnishings * * ] Sundry Current inventories ...!..!.!.!..*!!!..!!!! . . . ,,,, Food supplies !..!!..!.. Sundry 275 Cr. 276 EFFICIENCY AND ECONOMY COMMITTEE. i| i ^ ^ Dr. Cr. Trade Schools. Manual Training: Building Furniture and fixtures ' Office equipment Heat, light and water equipment Educational apparatus and equipment • Sundry Current Inventories: Materials on hand Stationery and office supplies Prison Administration. Women's Prison. Officers' Building: Building Furniture and fixtures Heat, light and water equipment Beds and bedding Machinery and equipment — power Sundry Current Accounts: Accounts receivable Balances of allotments accounts'^ Accounts receivable Balance of unallotted funds Accounts payable Trial Balance^ Revenue Statement and Balance Sheet for the Prison Proper. Revenue Statement: Income : • State of Illinois — Revenue Appropriations State of Illinois — Institution Sales Prison Administration — Officer's Subsistence: Sales of meal tickets Trade Schools — Manual Training State of Illinois — Miscellaneous Incomes: Interest on bank balances Refunds Sundry Total revenue and sales Operation and Maintenance: *^ Board of Prison Administration: Salary and wages Stationery, office supplies and printing * . . Postal supplies ........ Heat, light and water. Ordinary repairs ........ Extraordinary repairs !!!!!!!..! Depreciation and loss - Sundry ['.'.'.['.'.'.'.'. '.'.'.'.'.'.'.'. Prison Administration. Warden's Office: Salaries and wages Stationery, office supplies and printing Postal supplies Travelling expenses Depreciation and loss Sundry a. As a matter of bookkeeping this can be properly provided for bv rrPditinc the State of Illinois accounts which receive income or to which the Ceneral AssemMr appropriates and debitiujr Unallotted Funds. When the funds are allotted the allot- ment accounts may be debited and Unallotted Funds account credited. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 277 prison Administration Institution Grounds: Salary and wages Food supplies Laundry : Administration and operating costs , Laundry supplies , Prison Administration. Officers' Subsistence: Food served Administrative and operating , Administration and maintenance of store. Trade Schools. Manual Training Stationery, office supplies and printing Heat, light and water Materials for production Ordinary repairs. Extraordinary repairs Depreciation and loss Sundry Balance transferred to State Treasury Total operation and maintenance plus balances transferred State of Illinois — Balance Balance Sheet. Assets : Accounts receivable Cash on hand and in bank General Administration. Board of Prison Administration: Furniture and fixtures Office equipment Stationery and office supplies (inv.) Postal supplies (inv.) Sundry Prison Administration. Warden or Superintendent's Suite: Furniture and fixtures Dining room and kitchen Office equipment Stationery and office supplies (inv.) , . Postal supplies (inv.) Sundry • • , • • • • « • Prison Administration. Institution Grounds: Land Improvements on land Sundry Prison Administration. Officers' Kitchen and Dining Room: Furniture and fixtures Kitchen equipment '. Table furnishings !!!!!!!!!. '. Food supplies (inv.) '. Sundry Trade Schools. Manual Training: Building _ Furniture and fixtures Office equipment .....*..*.*. Heat, light and water equipment iulucational apparatus and equipment Materials on hand [ Mationery and office supplies (inv.) ..'..*... .' sundry • • , • • 278 EFFICIENCY AND ECONOMY COMMITTEE. r i Li Prison Administration. Women's Prison. Officers' Building: Building Furniture and fixtures Heat, light and water equipment Beds and bedding. Machinery and equipment — power Sundry Total Liabilities : State of Illinois — balance. Accounts payable Total liabilities Schedule 10. Clothing Room. Trading Account. Materials on hand 1st of year Materials purchased during year Miscellaneous furnishings for male prisoners. Clothing Hats and caps Other furnishings Materials on hand end of year Balance gross end of year Clearing Account. Dr. Cr. ••••••• Profit and Loss: Balance gross down Expenses : Salary and wages Stationery and office supplies. Postal supplies Heat, light and water , Power Ordinary repairs Extraordinary repairs Freight, express, cartage Sundry Balance^ (if any) Balance Sheet, September 30, 19 — : Assets: Building Furniture and fixtures Office equipment Heat, light and water quipment.. Machinery and equipment power. Machinery and equipment Other tools and implements Current inventories. Miscellaneous supplies Materials Total a. The value set on the items furnished should he sufficient to make the ^«^<''"*',^ zero. With a uniform price, however, for the institutions there might be a sniau gain or loss for any one of the iwititutions. . A separate operating statement should be constructed for each clearing acco"m. showing the costs and the credits classified according to commodities or service • These clearing account statements should be referred to as exhibits in the regui.-r operation and maintenance anniual report. In connection with the regular aTnent of salaries and to cover the cost of making any improvements which, in their judgment are necessary- to be made dunng such period. The estimate so presented by each man- agmg officer may include a contingent fund not exceeding five per cent of the total amount of the estimate for maintenance, to be used for emergencies, under such restrictions and conditions as the Board of Prison Administration may prescribe The fiscal supervisor shall return to the managing officer of each institution one copy of the said esti- mates as approved by him ; he shall file one copy with the Auditor of Public Accounts, and one copy shall be retained by himself. It shall be the duty of the Auditor to issue warrants on the State Treasurer for the contingent fund of each institution and such fund shall be turned over to the managing officers thereof. Itemized vouchers for all funds, includ- ing payrolls, shall be drawn in triplicate, one copy being held by the managing officer issuing such voucher ,one copy presented to the fiscal supervisor and one copy to the Auditor of Public Accounts, who shall issue a warrant on the State Treasurer for each voucher. Each voucher shall contain a sworn affidavit of the managing officer, or some other bonded otticer designated by the managing officer, certifying that the supplies and materials purchased or improvements or repairs made or special service rendered were fully satisfactory, or conforming to sample as the case may be; that the approving officer was in no way financially interested in the purchase of the work performed, and that he has full knowledge of the value of the purchase or work performed, such affidavit to be made in accordance with forms provided for the Board; provided that payrolls tor temporary employees employed in cases of emergency may be made at any time the services are performed. All such payrolls shall show that each and every person named in the payroll actually performed the services lor the time and at the rate charged in the payrolls. Other sections provide that : Rnnri^^l Treasurer shall act as treasurer of all funds within control of the TZth! ^"'?? Administration, of all appropriations made by the General Assembly for the benefit and use of the penitentiaries and the reformatory. T^.n?} "moneys received by the managing officers therefrom the sale of articles manufactured or produced by the labor of convicts or from any no Lfl^^f' P;^^^^^^^ that the monthly contingent fund shall be placed Tfht Z "^ ^^^ ^""'^ "^^ .""^ ^^'^ P^^^^^ ^""^g which it is to be used, fnnHc "'^"''^S^^S officer of the mstitution who shall be treasurer of such from fh i"'°''/^u ^^"^5*^^ by the managing officer of each institution Xtsoiv.r f ?i /^^ products of convict labor or from any other source stafem..? . ""n ^^ u"'^^""^^ monthly into the State treasury and a detailed s atement of all such receipts shall be made monthly to the fiscal super- visor^ by the managing officer of the institution. Admini^sfriJ!nn"J^f ^l"^ ""^T'^ '^^" ^^ appointed by the Board of Prison onW f^ • *^" ^^"^ ^ ^^"^ ?^ ^'^ y^^^s and may be removed by the Board inca^nable 'nf^'^^'l!'"'^' ""M^'^^ S^ -^"^^ ^" ^^her causes which render them mcapable of discharging their duties Thev and th^ir ap^rw//'"!' ^"^ "?i"°' '^^'^^"^> ^h^" b^ P^^^i^^d wiih'suitably furnished apartments for residence purposes within the institution, and shall be ' ft s 296 EFFICIENCY AND ECONOMY COMMITTEE. h allowed the necessary food supplies for their sustenance. But such sup- plies shall be only such as may be drawn from the general stock purchased for the subsistence of the prisoners, and each warden or superintendent shall make a monthly report to the Board of Prison Administration show- ing the amount and value of such supplies drawn by him during the pre- ceding month. They (the managing officers) shall take charge of all money and other property in the possession of each convict at the time of his admission to the institution, furnish him a receipt therefor and return same to him upon his discharge or deliver it to any other person who has a legal right thereto. They shall furnish each convict at the time of his discharge a suit of clothes, transportation to the place where he was convicted or to any other place equidistant and in addition pay him ten dollars in money. They shall make monthly reports to the Board of Prison Administration showing the number of prisoners admitted to the institution during the preceding month, the number discharged, the numbpr remaining at the time of the report, the pay roll of the institution during the month and sucli other matters of information as they may be required by the Board to furnish They shall also make an annual report The annual report shall also contain full information in regard to any and all industries operated by the institution, including expenditures and receipts The said report shall be incorporated in extenso or in sum- marized form in the report of the Board of Prison Administration. Section 38 provides that The amount of surplus standing on the books of the penitentiary or reformatory to the credit of any prisoner may be drawn by the prisoner duringJiis imprisonment only upon the certified approval of the warden of said penitentiary or superintendent of said reformatory to aid the family of such prisoner, or for books, instruments, and instruction, not supplied by the penitentiary or reformatory to men of his grade; or may, with the approval of said warden or superintendent, be so disbursed with- out the consent of the prisoner So far as could be ascertained all other laws affecting directly the accounting procedure of the penal institutions are repealed by the provisions of the bill with the exception of an act requiring an inven- tory of State property which was approved June 23, 1913. This act was made -to apply to all State institutions excepting those under the supervision of the Board of Administration and the Charities Com- mission. This law requires a perpetual inventory of all property and supplies. • The law passed in 1913 creating the Legislative Reference Bureau made certain accounting requirements of the State departments and institutions. These requirements are found in paragraph 6 of the law as follows: The officers of the several departments of the State government shall make duplicate reports by the first day of November next preceding the convening of the next regular session of the General Assembly of the appropriations which are required for their several departments for the biennium for which appropriations are to be made by the next General Assembly. One of the said duplicate reports shall be filed with the Gov- ernor, and the other with the secretary of said reference bureau. SUMMARY OF ACCOUNTING REQUIREMENTS OF THE BILL AND GENERAL STATUTES. (1) An annual inventory of permanent property. (2) Annual report containing: a. Salaries and names of all employees of the Board and the respec- tive institutions. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. b. Per capita cost of maintenance of each institution. c. The total expenditures on account of the institution. 297 d. A statement of all moneys paid into the treasury from each insti- tution. e. The receipts from every source. f. Amount of supplies furnished the institution and the amount used. g. Reports on industries showing: (1) Amount and value of materials purchased. (2) Amount used in carrying on the industries. (3) Balance of materials on hand. (4) Value of articles produced or manufactured during the year. (5) Amount sold and receipts therefrom and the manner of dis- position of all comm.odities produced or manufactured. (3) All appropriation requests to be itemized. (4) Managing officers must make to the Board periodical reports estimating amount of supplies required for: , a. General maintenance. b. Machinery. c. Other articles and supplies used in the operation of prison indus- tries. (5) The above report and all vouchers to be made in triplicate, one fo rthe managing officer, one for the Fiscal Supervisor, and one for the Auditor of Public Accounts. (6) State Treasurer to act as treasurer for all funds except petty cash. (7) Managing officers must make a monthly report showing the amount and value of supplies drawn by them during the month. (8) The managing officers have charge of funds of prisoners. (9) In addition to the requirements of the bill proposing the Board of Prison Administration, there is a State law which practically requires a perpetual inventory of the property and supplies of the penal mstitutions. (10) There is also a State law requiring all departments of the btate government to file estimates of appropriations required for the succecdmg biennium on or before the first Monday of November prc- ccdmg a session of the General Assembly. I 298 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 299 PART III. SCHEDULES OF DEFINED ACCOUNTS FOR THE DEPARTMENTS AND INDUSTRIES OF THE CORRECTIONAL INSTITUTIONS SCHEDULES OF OPERATION AND MAINTENANCE ACCOUNTS BY DEPARTMENTS. • Many of the accounts appearing in the operation and maintenance schedules below occur as departmental accounts in a large number of departments. Their definitions below will serve as definitions for the same accounts in various departments. A. Salary and wages. Charge to these accounts the salary and wages of all employees whose time is devoted to the work of the respective departments concerned. B. Stationery, office supplies and printing. .These accounts should in each case be debited with the cost of all stationery, office supplies and printing purchased for the respective departments. The accounts should be credited at the time of taking the regular inven- tory with the stationery and office supplies then on hand. C. Postal supplies. The postal supplies accounts should be debited with the cost of all postal supplies purchased for the respective de- departments and credited with the postal supplies on hand at the time the regular inventory is taken. D. Heat, light and water. This account should be charged with the cost of heat, light and water used by the various departments. There should be no credits to this account except refunds or com- pensation for errors in charges. Any local power plant furnishing these services should be credited with the cost of the services so furnished, as indicated by the operation and maintenance accounts of the department. E. Fuel. The fuel used by the power plants is usually kept in stores. A log sheet for the boiler in question should show the amount of fuel devoted to boiler use each day. The cost of this fuel should be charged to the boiler account in question and credited to the fuel store. In the operation of the industries and departments the boiler room is one of the clearing accounts and makes a sufficient charge for steam to cover the boiler room costs including the cost of fuel used. When fuel is used by departments in furnishing steam or heat direct it is charged as fuel to such departments. F. Steam. These accounts appear as a cost of operation in the engine room and in the kitchen securing steam from the boiler room. The boiler room should charge for this steam on the basis of the cost of its production as shown by the boiler room operation and main- tenance accounts. The boiler room, as a clearing account, would take credit for the amount so charged. While steam meters may be used for some of the main pipes leading out of the boiler room it will probably be necessary to make engineering estimates of amounts used in some cases. Under the account of heat, light and water, the chief item will be steam furnished from the power plants for heating pur- poses. It may be necessary to charge this steam to the industries and other departments partly on the basis of the floor space heated. At any rate competent engineers agree that it is possible to reach a fair approximation to the amounts of steam used in various connections. The particular experiments required to make these approximations depend partly on the local situations. G. Electrical power. In case this is purchased the amounts used by the various departments and industries can be readily determined by the use of meters and the charge for its use should be made on this basis. Operation and maintenance of transmission mains or regular stations equipped with motors should also be charged to the various departments on the basis of the amounts of electricity used. Where there is a regular station equipped with motors as in the case of the stone department its maintenance and operation should be charged to the stone department as administrative costs to be added as a power cost to the outlay for the power purchased. The charges for electric light should be made on the basis of electric light meters used for the various industries and departments. H. Materials for production. In the case of the clothing room the cost of cloth and trimmings will be a charge to materials of produc- tion. The term, supplies, as distinct from materials usually refers to commodities used up in production and not constituting the essential parts of the finished products. Coal and fuel are supplies and not raw materials. The trade schools and the manual training department, which may be classed as a trade school for purposes of accounting, use materials in their handicraft work. The various industries and departments have materials on hand when the inventories are taken preparatory to closing the books. The cost of these materials should be credited to the material account. I. Food supplies. Charge to these accounts the cost of all food turmshed to the various kitchens. The accounts should be credited with the cost of all food on hand at the time of taking an inventory, ine food charged out to the various departments will be credited to tne subsistence store. J. Administrative and operating costs. In the schedules supple- mentary to the general schedules of the departments it is convenient group all of the operation and maintenance costs other than one principal Item such as food or medical supplies under one total, which niay be designated as administrative and operating costs for the de- partment. The administrative and operating costs of the subsistence ^lore must be distributed on the basis of sales to the departments. chr» \^^f^ f^^ ^*^^ ^^ock. If the farm superintendent, or officer ^"arged with supervising the feeding of live stock, would make speci- I 300 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 301 i^ m ft -,:" fication feed rations for live stock of every kind a daily report show- ing numbers of animals fed would also carry the total of feed of each kind to be credited to the feed bams. Since this kind of supervision represents the approved method, it was presumed to be the plan for which accounts should be prepared. It will be necessary therefore to charge each bam with the feed supplies stored there under separate accounts for each kind of feed. These feed accounts of the feed barn should then be credited with the amount of feed of the several kinds taken out as shown by the daily feed report. The adminis- trative and operating costs of the barn would be charged to the main- tenance of the various kinds of stock on the basis of the valup of feed charged to that kind of stock. L. Clothing. (Material.) This account is charged with the cost of material going into the garments. The administrative costs are distributed on the basis of the hours of prison labor sho^yn in the specification cost of each kind of garment. This specification labor, if checked by the efficiency sheets of the laborers, will serve as a satis- factory basis of distribution. M. Cash for discharged prisoners. Charge to this account the cash paid to discharged prisoners as required by statute. N. Gasoline, oil and waste. Charge to these accounts the cost of all gasoline, oil, waste purchased for the respective departments, credit- ing them with these supplies on hand at the time of taking the inven- tory. O. Tobacco. Charge to this account the cost of all tobacco furnished to the prisoners. The store room or tobacco shop can readily handle these supplies and take credit for all supplies fumished. P. Medical supplies for prisoners. Charge to this account the cost of all medical supplies purchased by the hospital and credit it with supplies on hand at the time of taking an inventory. Q. Barber supplies. Charge to this account the cost of all barber supplies. Credit the account with the cost of supplies on hand at the time of taking a regular inventory. < R. Hats and caps. Charge to these accounts the cost of all materials used in making hats and caps as shown by the material charged to these accounts by the clothing rooms, plus administration costs, or the purchase price of these commodities if they are not manu- factured locally. S. Shoes for prisoners. Charge to this account the cost of shoes sold to the institution by the shoe industry. They should be sold by the shoe industry at the regular price for such commodities. T. Laundry supplies. In order to properly distribute these sup- plies to the various departments some regular list price for pieces or every description must be adopted as a basis for the distribution of the total charge of laundry supplies purchased by the respective laun- dries. Every order for laundry w^ork should then bear a charge by the laundry. At the end of the month or at the time of closing the accounts the actual cost of supplies used may be charged against the respective departments in proportion to these operating charges made to the departments when the work was done. The laundries them- selves, which are clearing accounts, will charge to laundry supplies the cost of these supplies purchased and credit the account with the sup- plies on hand at the time of closing. U. Ammunition. Charge to these accounts the cost of all ammu- nition bought for the respective departments and credit them with ammunition on hand at the time of taking an inventory. V. Travelling expenses. This should be charged to the depart- ments whose employees incur the expense. In case one departmental officer travels for another department the travelling account of the department incurring the expense may be credited and the other department charged. This plan is important in giving a managing board appropriate control over the outlays in this connection. W. Seed, plants, etc. Charge to these accounts the cost of seed plants, cuttings, etc., used on the lawns and in greenhouses, or in the gardens or officers' buildings. X. Ordinary repairs. Charge to these accounts the cost of all ordinary repairs on the property listed under the respective depart- mental property accounts. Ordinary repairs are those recurring in amounts approximately equal from year to year. Y. Extraordinary repairs. Charge to these accounts the cost of all extraordinary repairs made on the property of the respective de- partments. These repairs are those annual repairs which do not recur in approximately equal amounts from year to year. ZL Over, shortage and loss. In connection with the inventory of the kinds of property listed in the various departments there will be amounts missing, if the preceding inventory and purchases for the year are taken into consideration. This difference between total prop- erty ot a given department as shown by the property account and the inventoiy should be credited to the property account as a loss and debited to over, shortage and loss. This amount under tools and imple- ments would be expected to be comparatively large. Table furnish- ings, breakages and condemned linen would also be credited to the aepartments concerned at the inventory period or when the property pronert™^ l"" this way the inventory will serve to correct the KLo ti VT-"^ ^^^^ the departments responsible for property shoufd hi T•7^^' ^''^""^ ^' "^^ ^''^^^ ^" ^^'^ schedules below but siiould be inserted wherever there is occasion for it to a Lnl'/rT'*''''"^ T"^ ['''■ ^^^ ^"^^^^" equipment is also subject denreS ^^P^f^^^f l^^^ ^^^m wear and tear and obsolescence. This as scraf Kv ""^.T'^' ^^^'" ^i'°""t ^^ before the property is condemned var oufDrn^nPrH ^"^ "^ f ^^P^^^^^^ion liability account against these schl7A P^P^^^y accounts in connecton with drawing up the propertv Kcci^tinn . 1 T ^'''''^"^' '^^^"J? ^^'^ ^^ ^^^^^^^ to the respective to the scran Ti .f '''°""''- ^^ ^^^ ^"'^^^" P^^P^^^^ ''' consigned with if! ^^.r t^ Property account concerned should be credited count shonM TVk-! tP-^"^"'^"" ^'""^'^''y Wosite this property ac ment';",^,^, ^t'fj^"^ " 'T^^' ^"^^"^t- The cost^f replace- accoun^ T \u' ' "^^^.^"^^ ^^ ^^'^ respective departmental property "unts. In this way the inventory at cost, less the respective de- k IH 302 EFFICIENCY AND ECONOMY COMMITTEE. t 1 il preciation liability accounts will always equal the present value of the property. Unless some such plan is employed the property accounts will soon get out of date and the operatng costs will be improperly stated IZ. Sundry. Charge to these accounts the unclassified expenses of the various departments. AZ. Overtime for prison labor. Charge to these accounts any amounts paid to prisoners for work performed. The account is used only in the industries because at the present time it does not occur else- where. But it may be set down as an account in any department where the expense is incurred. HZ. Hours of prison labor. This information may be kept by departments without making it a financial account. There are reasons which might be assigned for setting the amount of prison labor down as both an income and an expense at fifty to seventy-five cents per day. But at any rate it should be kept by departments as statistics. It is put down with the financial accounts in order that it may be properly defined for the departments. In addition to the statistical item of hours of prison labor, record may be kept for each department of industry of the "rent burden" and "interest burden'* occasioned by the State investment involved. ZR. Rent burden. This term refers, in this report to an estimated rental on buildings and building space. It is not included in the financial schedules but it is of significance as a statistical item and calls attention to the saving involved in the furnishing of buildings and building sites instead of incurring an outlay for their rental. So far as possible the rate should correspond closely to what would be the market rate for such accommodations. ZP. Interest burden. This term refers to an estimated interest on the investment in machinery and other assets not included in the items of buildings and building sites. The reason for separating the "interest burden" and "rent burden" into two items is that there is often an alternative of renting space, while still making investment in machinery and other assets. The interest-burden rate should be ap- proximately equal to what the state would have to pay for the use of funds or approximately equal to the current rate of interest on long- term state bonds. As a statistical item the "interest burden" serves the same purpose as the "rent burden" discussed above. It is not included in the financial accounts of this report but may be added to the statistical tables. Wherever used both the "interest burden," and the "rent burden," terms should be accompanied by a note calling at- tention to the fact that they do not represent outlays of money during the period under consideration but are used for the purpose of calling attention to the significance of the property investment involved. In order to make the accounting schedules more complete the account of board of officers could be appropriately created in con- nection with the departments and industries. In case this account is used, it should be charged with the cost of the board of the officers oi the respective departments in which it occurs. At the same time the officers' kitchen and dining room would be credited with the amount ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 303 so charged. The accounts appearing in the schedules, as they now stand, under the caption of officers' subsistence would disappear except as statistics in the annual report if the officers' kitchen and dining room account were cleared by means of the charges to the respective departments. The departments are numbered consecutively. If it is desired to insert a department number without changing the numbers of other departments, decimal units may be used. For example a departmental account between 29 and 30 might be called 29.1. The letters used in connection witli the departmental numbers refer to the definitions of accounts precedmg the schedules. The letters Nl, N2, etc always refer to new accounts not defined in the introduction. Numbers alone or numbers precedmg letters always refer to department numbers. Divisions of any of the regular accounts defined in the introduction are indicated by repeating the letter for each division added For example a second administrative and operating under a given depart- ment would be designated by JJ instead of J. ^ DEPARTMENTS SUPPORTED MAINLY BY GENERAL REVENUES. Board of Prison Administration, i. Salary and wages. Stationery, office supplies and printing Postal supplies. Heat, light and water. Ordinary repairs. Extraordinary repairs. Depreciation and loss. ISZ. Sundry. IHZ. Hours of prison labor. (Statistics.) Prison Administration-Warden or Superintendent's Office, 2, Prison Administration, i. 2A. Salaries and wages. 5^1 B. Stationery, office supplies and printing. ^^. Postal supplies. 2y. Travelling expenses. 2Z. Depreciation and loss. 2oZ. Sundry. 2HZ. Hours of prison labor. (Statistics.) Prison Administration— Warden House Building, 3. 3A. Salary and wages. Heat, light and water. Seed, plants, etc. Ordinary repairs. Extraordinary repairs. ^^ Depreciation and loss. ohZ. Sundry. 3H2. Hours of prison labor. (Statistics.) lA. IB. IC. ID. IX. lY. IZ. 3D. 3W. 3X. 3Y. 3Z. L i j 304 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS/ 305 i 1 I \ Prison Administration — Institution Grounds, 4. 4A. Salary and wages. 4W. Seeds and plants. 4D. Heat, light and water. 4SZ. Sundry. 4HZ. Hours of prison labor. (Statistics.) Prison Administration — Warden or Superintendent's Suite, 5. 5A. Salary and wages. 51. Food supplies. See Exhibit 1. 5J. Laundry, administrative and operating costs. Charge to this account the fair proportion of the balance of accounts under department 56 after crediting the account with laundry supplies. See account T. 5T. Laundry supplies. 5F. Steam furnished for kitchen. 5E. Fuel for kitchen. 5X. Ordinary repairs. 5Y. Extraordinary repairs. 5Z. Depreciation and loss. 5SZ. Sundry. 5HZ. Hours of prison labor. (Statistics.) Prison Administration — General Accounting Office, §.i 5.1A. Salary and wages. 5.1 B. Stationery, ofticc supplies and printing. 5.1c. Postal supplies. 5. IX. Ordinary repairs. 5.1Y. Extraordinary repairs. 5.1 Z. Depreciation and loss. 5.1SZ. Sundry. 5.1HZ. Hours of prison labor. (Statistics.) Prison Administration — Officers* Subsistence* 6. See Department 63. 6L Food served. 6T. Administrative and operating. See also 5J. 6JJ. Administration and maintenance of store. See also ST. and 16JJ. Prison Administration — Women's Prison — Officers* Building, 7. 7D. Heat, light and water. Charge to this account the cost of heat, light and water furnished to the officers' buildings of the women's prison with the exception of the cost of the steam furnished the officers' kitchen for cooking pur- poses. The steam for cooking purposes is furnished during the sum- mer by the power house of the men's prison. The rate of consumption of steam for cooking purposes may be assumed to be the same during the winter months as it is in summer. The boiler room of the women's prison furnishes heat during the winter months. The entire cost 01 the operation of this boiler room should be charged to the account 7T. 7W. 7X. 7Y. 7Z. 8A. 8B. 8E. 8F. 81. 8J. 8T. 8X. 8Z. 0^' light, heat and water. The account should then be credited with the heat used for cooking purposes in the officers' building, the bal- ance of the account being the cost of heat, light and water for the building. The amount of light and water consumed should be determined by meters. ^ 8J. Laundry, administrative and operating. (See also 5J.) Laundry supplies. Seed, plants, etc. Ordinary repairs. * Extraordinary repairs. Depreciation and loss. 7SZ. Sundry. 7HZ. Hours of prison labor. (Statistics.) Prison Administration—Women's Prison— Officers' Kitchen and Dining Room, 8. Salary and wages. Stationery, office supplies and printing. Fuel. Steam furnished for kitchen. Food supplies. (See also Account 63L) Laundry, administrative and operating. (See also 5J.) Laundry supplies. Ordinary repairs. Depreciation and loss. 8SZ. Sundry. 8HZ. Hours of prison labor. Prison Administration— Women's Prison— Confinement and Discipline Prisoners, p. Salary and wages. Stationery, office supplies and printing. Postal supplies. Heat, light and water. Ordinary repairs. Extraordinary repairs. Depreciation and loss. 9SZ. Sundry. 9HZ. Hours of prison labor. (Statistics.) Prison Administration— Confinement and Discipline of Male Prisoners, 11. Salary and wages. Stationery, office supplies and printing. Postal supplies. Heat, light and water. Fuel. Ammunition. Ordinary repairs. Extraordinary repairs. • Depreciation and loss. HSZ. Sundry., HHZ.* Hours of prison labor.. (Statistics.) 9A. 9B. 9C. 9D. 9X. 9Y. 9Z. 11 A. IIB. lie. IID. HE. IIU. IIX. IIY. IIZ. 306 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 307 I \ ^ Prison Administration — Parole of Prisoners, 12. 12 A. Salary and wages. 12B. Stationery, office supplies and printing. 12c. Postal supplies. 12V. Travelling expenses. 12X. Ordinary expenses. 12Y. Extraordinary repairs. , 12Z. Depreciation and loss. 12SZ. Sundry. 12HZ. Hours of prison labor. (Statistics.) Prison Administration — Receiving and Discharging Prisoners, ij. 13A. Salary and wages. 13B. Stationery, office supplies and printing. 13C. Postal supplies. 13J. Administrative and operating — clothing room. See also 5. 13L. Discharge clothing. 13M. Cash allowance. 13SZ. Sundry. 13HZ. Hours of prison labor. (Statistics.) Prison Administration — Institution Teams and Vehicles, 14. 14A. Salary and wages. • 14K. Feed. 14NI. Care of teams. Charge to this account the cost of all Slacksmithing and all veterinary supplies and services. 14K. (Drdinary repairs. 14Y. Extraordinary repairs. 14SZ. Sundry. 14Z. Depreciation and loss. MHZ. Hours of prison labor. (Statistics.) Prison Administration — Institution Automobiles, 15. 15 A. Salary and wages. 15NI. Gasoline, oil and waste. Charge to this account the cost of all gasoline, oil and waste pur- chased for use in the operation and maintenance of automobiles, for the institution work. 15X. Ordinary repairs. 15Y. Extraordinary repairs. 15Z. Depreciation and loss. 15SZ. Sundry. 15HZ. Hours of prison labor. (Statistics.) Maintenance of Male Prisoners — Subsistence, 16. See Department 58. 16T. Food served. 16J. Administrative and operating. See also 5J. 16JJ. Administration and maintenance of store. See also 5J. The cost of the operation of the prison storG room should be dis- tributed on the basis of the total amount charged from the store to the respective accounts. The total amount charged from the store to the convict kitchen and dining room divided by the total charge from the store to all departments will give the fraction of the cost of operation of the store which should be charged to the operation of the convict kitchen and dining room. At the same time the clearing account of prison store operation should be credited with the amount so charged. 16TZ. Tobacco. 16SZ. Hours of prison labor. (Statistics.) Maintenance of Male Prisoners — Sanitation, ij. 17F. Cost of medical supplies furnished prisoners. 17J. Administration and operating hospital. See also 5J. 17HZ. Hours of prison labor. (Statistics.) Charge this account with the total number of hours of prison labor devoted to the operation and maintenance of the institution hospital. See also department 62. Maintenance of Male Prisoners— Laundry, 18. • 18J. Laundry, administration and operating. See also 5J. 18T. Laundry supplies. 18HZ. Hours of prison labor. (Statistics.) Maintenance of Male Prisoners — Barber Work, 19. . 19G. Cost of barber supplies. 19J. Administraticii and operating barber shop. See also 5J. 19HZ. Hours of prison labor. (Statistics.) Maintenance of Male Prisoners — Miscellaneous Furnishings, 20. 20J. Administrative and operating — clothing. See also 51. 20L. Clothing. (Material.) 20Z. Shoes for prisoners. 20NL Shoe repairs. Charge to this account the cost of all shoe repairs. The repair shop or clothing room should be credited for the amount so charged. 20L Hats and caps. (Material.) 20JJ. Administrative and operating — hats and caps. 20HZ. Hours of prison labor. (Statistics.) 20NL Baths. Charge to this account the cost of all supplies furnished for male prisoners' bathing facilities. Farms and Garden — Prisoners' House, 20.1 20.1 A. Salary and wages. 20. IB. Stationery, office supplies and printing. 20.1c. Heat, light and water. Farm and Garden — Prisoners' House, 20.1. 20. IL. Fuel. 20. IX Ordinary repairs. 20. lY Extraordinary repairs. ^U.IZ Depreciation and loss. 20.1SZ Sundry. . 308 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 309 'i I y Farm and Garden — Prisoners' Subsistence, 20.2. 20.21. Food supplies. 20.2L. Fuel. Charge to this account the cost of all fuel used in cooking for the farm and garden prison house. At the same time the stock of fuel for the farm prison house should be credited. 20.2X. Ordinary repairs. Charge to this account all ordinary repairs on the furniture, fix- tures and equipment of the convict kitchen and dining room of the farm prison house. 20.2Z. Depreciation and loss. 20.2Y. Extraordinary repairs. Charge to this account all extraordinary repairs on the furniture, fixtures and equipment of the convict kitchen and dining room of the farm prison house. 20.2SZ. Sundry. Maintenance of Female Prisoners — Subsistence, 21, 211. Food supplies. Charge to this account the cost of all food furnished the regular convict kitchen from the store room and other sources. At the same time the store room should be credited for the food so furnished. See also Account 631. 21J. Administration and operating — convict kitchen and dining room. See also Account 5J. 21JT. Administration and operating — store. The cost of the operation of the prison store room should be dis- tributed on the basis of the total amount charged from the store to the respective accounts. The total amount charged from the store to the convict kitchen and dining room divided by the total charge from the store to all departments will give the fraction of the cost of operation of the store which should be charged to the operation of the convict k'tchen and dining room. At the same time the clearing account of prison store operation should be credited with the amount so charged. 21. Hours of prison labor. (Statistics.) Charge to the account the total number of hours of prison labor employed in the convict kitchen and dining room, at the same time crediting the clearing account with the same number. Charge this account also with the same fraction of the total number of hours of prison labor employed in the administration of the store that was used in determining the proportion of the total cost of store admin- istration chargeable under the subsistence department. Maintenance of Female Prisoners — Sanitation, 22. 22F. Medical supplies furnished prisoners. Charge to this account the cost of all medical supplies furnished the convicts. The hospital account, which is made a clearing account, should be credited with the supplies so charged. 22J. Administration and operating — hospital. See also 5J. 22HZ. Hours of prison labor. (Statistics.) See also 21HS. 24R. 24J. 24JJ. 24S. Maintenance of Female Prisoners — Laundry, 2j. 23T. Laundry supplies. Charge to this account the cost of all laundry supplies used in the operation of the prison laundry. 23J. Administration and operating — laundry. See also Account 23HS. Hours of prison labor. (Statistics.) Maintenance of Female Prisoners — Miscellaneous Furnishings, 24 24L. Clothing. Hats, caps, etc. Administration and operating — clothing. Hats and caps. Administration and operating. See also 51. Shoes. 24NI. Baths. Charge to this account the cost of all supplies furnished for bath- ing facilities for women prisoners. 24HS. Hours of prison labor. (Statistics.) Charge to this account the hours of prison labor devoted to the production or purchase of all commodities classed under furnishings. Religious and Educationals — Religious Instruction, 25. 25A. Salary and wages. Stationery, office supplies and printing. Postal supplies. Heat, light and water. Ordinary repairs. Extraordinary repairs. Depreciation and loss. 25HZ. Hours of prison labor. (Statistics.) Religious and Educational — General Education, 26. 26 A. Salary and wages. Stationery, office supplies and printing. Heat, light and water. Fuel. Ordinary repairs. Extraordinary repairs. Depreciation and loss. 26SZ. Sundry. 26HZ. Hours of prison labor. (Statistics.) Charge to this account the total number of hours of prison labor t^T^M J° general education or to the operation and maintenance of tne buildmg and equipment devoted to general education. The power and repair plant should be credited with all labor furnished in connec- tion with the repair and maintenance of the building and equipment used for general educational purposes. Religious and Educational — Trade Schools, 27. • ^^^ accounts scheduled under the caption of "Trade Schools" are tended for use in recording the operations of each trade school 25B. 25C. 25D. 25X. 25Y. 25Z. 26B. 26D. 26L. 26X. 26Y. 26Z. il, " I il i^ I! I IH r t \ IW 310 EFFICIENCY AND ECONOMY COMMITTEE. which may be conducted in any of the institutions. In case any de- partment of an institution produces commodities for sale to merchants on the open market, or to state institutions, the department should be classed as an industry in the application of the accounts which are scheduled in this report. In case a specific set of accounts is sug- gested for some department which may be classed as a trade school this set of accounts should be employed instead of the one suggested under this caption. Manual training departments require the same accounts as the trade schools. 27A. Stationery, office supplies and printing. 27D. Heat, light and water. 27R. Materials for production. 27X. Ordinary repairs. 27Y. Extraordinary repairs. 27Z. Depreciation and loss. 27SZ. Sundry. 27HZ. Hours of prison labor (Statistics). Charge to this account the number of hours of prison labor de- voted to the production of articles and commodities made in the trade schools, or to the maintenance and operation of the school. 28HZ. Hours of prison labor (Statistics). Charge to this account the number of hours of prison labor de- voted to the maintenance and operation of the farm prison house. Do not charge to this account the number of hours of prison labor em- ployed in connection with the maintenance and operation of the kitchen and dining room of the farm prison house. Camps — Camp Dunne, 28. 28A. Salary and wages. 281. Food supplies. 28V. Travelling expenses. 28Z. Depreciation and loss. 28HZ. Sundry. Stone Department, 2p. 29A. Salary and wages. 29B. Stationery, office supplies and printing. 29C. Postal supplies. 29D. Heat, light and water. 29K. Ordinary repairs. 29Y. Extraordinary repairs. 29NI. Freight, express and cartage. Charge to this account the cost of all freight, express and cartage paid on material or supplies received or shipped hy the Stone Depart- ment. Credit this account with the reimbursements of money so ex- pended and for all freight, express and cartage chargeable to installa- tion or property accounts. 29G. Electric power. 29N2. Compressed air power. Charge to this account the cost of compressed air power used in the stone department, as shown by the clearing account entitled "Com- pressed Air Plant." Credit the compressed air account with t.ic amount so charged. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 311 29N3. Steam power. Charge to this account the cost of operating the steam power plant as shown by the clearing account of the steam power plant of the stone department. Credit the clearing account of the steam power plant with the amount so charged. 29Z. Depreciation and loss. 29SZ. Sundry. 29HZ. Hours of prison labor (statistics). In the stone department work is done by groups of men and tasks are set for groups rather than for the individual. The unit of per- formance is the breaking, loading and delivering a yard of stone to the crusher. Tasks are set in the terms of this unit. It has been the practice in one of the penitentiaries to allow any squad of prisoners to quit for the day when it had finished the task assigned and this plan seems to have secured good results. It is not clear why the prisoners in the stone department should not be allowed to earn overtime by overtime work just as in the case of the industries. In case this is done the foreman of the stone de- partment should report the performance of each squad of men, indi- cating the convict numbers of the men constituting the squad. The overtime should be stated in terms of fractions of the regular task set. DEPARTMENTS SUPPORTED MAINLY BY EARNINGS. Farm and Garden — Administration, 50. 30A. Salary and wages. Charge to this account the salaries and wages of the farm super- intendent and all other employees who are hired in connection with the administration of the farm and garden. Do not charge to this account the salaries of guards for farm prisoners. 30B. Stationery, office supplies and printing. 30D. Heat, light and water. Charge to this account the cost of heat, light and water furnished to the superintendent's house. , In case the superintendent is not furnished with a home and sub- sistence some of the accounts scheduled under this department will not be required. In case the farm prisoners are maintained in the institu- tion proper other of the accounts scheduled under this department will not be required. 30L. Fuel. Charge to this account the cost of fuel used in the maintenance of the farm superintendent's home. In case the house is heated with luel the item of heat may be deducted from account 30D. 301. Food supplies. See Exhibit No. 1. 30X. Ordinary repairs. 30Y. Extraordinary repairs. 30Z. Depreciation and loss. 30SZ. Sundry. 30HZ. Hours of prison labor. (Statistics.) Ai. 312 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 313 I Farm and Garden — Officers' Subsistence, ji. 311. Food supplies. In so far as the menu of officers is the same as that of the prison- ers, the officers should be charged with a per capita cost equal to that of the prisoners. They should be charged in addition with all addi- tional food supplies furnished the prison house kitchen and dining room for officers' consumption. After a careful preparation of the menus both for prisoners and officers and a further careful examina- tion of the average portions required for prisoners and officers, it will be possible to properly apportion the charges for food between prison- ers and officers. 31J. Administrative and operating. See 6N2. The subsistence of guards should be credited to accounts 311. and 31 J. respectively and the board of such officers charged to account 61. and 6J. Farm and Garden — Automobile, ^2. 32N. Gasoline, oil and waste. 32X Ordinary repairs. 32Y. Extraordinary repairs. 32Z. Depreciation and loss. 32SZ. Sundry. 32HZ. Hours of prison labor (Statistics). Farm and Garden — Machinery, Implements, Vehicles and Harness, jj. 33X. Ordinary repairs. 33Y. Extraordinary repairs. 33Z. Depreciation and loss. 33SZ. Sundry. 33HZ. Hours of prison labor. (Statistics.) Farm and Garden — Power Machinery, jj.j. 33. IN. Gasoline and oil. 33.1X. Ordinary repairs. 33. lY. Extraordinary repairs. 33. IZ. Depreciation and loss. 33.1 SZ. Sundry. 33.1 HZ. Hours of prison labor. (Statistics.) Farm and Garden — Farm Teams, 34. 34A. Salary and wages. 34K. Feed. 34X. Ordinary repairs. 34Y. Extraordinary repairs. 34Z. Sundry. 34SZ. Depreciation and loss. 34HZ. Hours of prison labor. (Statistics.) Farm and Garden — Land and Improvements, 55. 35X. Ordinary repairs. 36Z. Depreciation and loss. 35Y. Extraordinary repairs. 35Z. Depreciation and loss. 35HZ. Hours of prison labor (Statistics). Farm and Garden — Corn Crop, j6. 36A. Salary and wages — hours of paid labor. 36W. Seed, plants, etc. 36NI. Fertilizer. Charge to this account the cost of all fertilizer used in enriching land planted m corn. In case land is fertilized less often than once a year it should be charged over the period of years elapsing between the several periods when the fertilizer is used, being charged to the re- spective crops planted in the fertilized soil. All fertilizer not charged agamst the crop m the year in which it was purchased should be car- ried m the mventory of property accounts as a deferred expense, the fertilizer account being credited with the amount charged to the ac- count of fertilizer deferred expense. 36N2. Horse hours. Charge to this account the number of hours of horse labor devoted to the cultivation and harvesting of the corn crop. At the end of the year the total cost of the maintenance of farm teams should be distributed between the various crops on the basis of the hours of horse labor devoted to the respective crops. At that time the hours of horse labor can be given their appropriate cost as an item of outlay incurred in the production of corn. In the monthly reports this cost may be approximated leaving the final adjustment to the end of the year » Farm and Garden — Corn Crop, j6. 36X. Ordinary repairs. 36Y. Extraordinary repairs. 36Z. Depreciation and loss. 36SZ. Sundry. 36HZ. Hours of prison labor (Statistics). The schedule of cost accounts provided for the corn crop (Ac- counting Department No. 36) will serve also as cost accounts for the production of other crops which are raised on the farm and garden. Farm and Garden — Hogs, j/. H^V Salary and wages — hours of paid labor. 37NI. Cost of hogs. 5,r. ^^^^l^ ^?M^^^ account the cost of all farm hogs purchased. This account should be credited with the value of hogs on hand at the end ui me year when the inventory is taken. The inventory showing live stock on hand should be debited with the value of hogs thus credited to this account. 37K. Feed of hogs. 3/X. Ordinary repairs. ^/Y. Extraordinary repairs. 37N2. Freight and cartage. bv ihf\^^^ ^^ ^^'^f ^^^^""t the freight and cartage on all hogs supplied y me store or otherwise transported to and from the farm hog yard. '^{^> Depreciation and loss. nectinn ^""^.t ^? ^^'^ account all depreciation and loss incurred in con- of hmrc T ^ production and sale of hogs. All charges for the loss live hntc 1^"^.^.'^^?^^^ ^^^"^^ ^^ credited to t|;ie perpetual inventory of ^e ^ogs kept in the general accountant's office. : 4 li 314 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 315 m i i ! y (I 37SZ. Sundry. 37HZ. Hours of prison labor (Statistics). A similar operation and maintenance account should be kept for dairy cows, for poultry, and for any other type of live stock produced on the prison farm. The schedule of accounts indicated above under hogs would not furnish all the data required in the case of the poultry and dairy. In the case of the dairy the production record of each dairy cow should be kept and tests should be made showing butter fat for each cow. In the case of the poultry barn, statistics would be required concern- ing each breed of poultry covering egg production, death rate, etc. Special breeds of hogs could be treated in the same way. The feeding record for the special breeds together with their respective weights at the time of slaughter would furnish valuable data indicating what breed of hogs could be fed to the greatest advantage. Manufacturing Industries — Furniture, 40. 40A. Salary and wages. 40B. Stationery, office supplies and printing. 40C. Postal supplies. 40D. Heat, light and water. Charge to this account the cost of heat, light and water furnished to the plant in the furniture industry. The heat for the furniture industry in the Illinois State Penitentiary is furnished from a boiler in the furniture plant. The cost of operation of the boiler plant as shown in the clearing account should be charged to the production of steam for heat and to the production of steam for power. In case it is not feasible to determine the amount of steam used for the produc- tion of heat, as separate from the amount of steam used for the pro- dution of power, the amounts may be approximated by the estimates and experiments of the chief engineer. The fraction of the total amount of steam used for heating purposes would be the fraction of the cost of operation of the boiler which should be charged to the heat, light and water account of the furniture industry. The boiler room should at the same time be credited with the amounts so charged. 40FG. Power.a Charge to this account the cost of power furnished for the opera- tion of the machinery and equipment of the furniture industry. The cost of this power in the case of the furniture industry of the Illinois State Penitentiary is the balance of the cost of the maintenance and operation of the boiler room after the proper charge for heat has been made, with the addition of the cost of the maintenance and operation of the engine room of the furniture industry. In case any electric power were used the cost of such power, as determined by a meter, should be charged to the power account. For the cost of all power furnished from the steam engine room the account should be charged and the engine room credited. 40H. Materials for production. 40NI. Freight, express and cartage. a. The FG. refers both to steam and electric power accounts as defined in the introduction to this schedule. Charge to this account the cost of freight, express and cartage incurred in connection with the operation and maintenance of the furniture industry. The account should be credited with freight and express later reimbursed, or with any freight, express or cartage which may be charged to the installation of machinery, or to permanent im- provements of the furniture industry. 40X. Ordinary repairs. 40Y. Extraordinary repairs. 40Z. Depreciation and loss. 40SZ. Sundry. 40AZ. Overtime for prison labor. 40HZ. Hours of prison labor (Statistics). Certain additional accounts should be kept in the furniture indus- try for the purpose of promoting efificiency and giving to the superin- tendent the information v/hich he needs for the purpose of controlling the operations of the industry. ^ The larger portion of the work done by prisoners in the furniture industry can be reduced to piece work operations. Wherever this is possible a task should be set as a reasonable performance for a pris- oner to accomplish in a day. The report should give prisoners credit for all accomplished in excess of the reasonable day's work in terms of a fraction of the reasonable task. In this way the prisoner may earn overtime which will be made the basis of pay allowed from the profits of the industries. In some lines of work, such as the distribution of stock, the work of a runner, and other similar tasks, it is not so easy to provide for overtime work. It is not difficult, however, to have an industry's fore- man determine whether such prisoners are performing theii work etticiently, and the degree of proficiency should be indicated each day in the record of such prisoners so that a fair allowance for overtime may be given them. A regular stock account should be kept for the store room of the tiirniture shop. A specification cost should be made for every chair mimber or furniture piece which is manufactured in the furniture industry. These specification costs will show in detail the costs of material required for the manufacture of the furniture pieces in ques- tion These Items also furnish the detail costs in which stock should oe Charged from the store to be used in the manufacture of furniture. ^n lumber and raw material thus taken from the store room should oe credited to the store and charged to unfinished stock of the kind aesignated When any furniture is finished, unfinished stock should oe credited with the specification costs of material for the stock so inrnished, and finished stock should be debited with the specification ^cost of such finished goods. In this way a perpetual inventory will qfn u -^t *^i^? ^^^ materials on haijd, unfinished stock and finished ^tock. I he finished stock inventory should be kept under chair num- oer or list number so that a detailed record will be kept of the output "i the furniture shop classified according to the kind or list number or turniture produced. Once each month an inventory should be laKen of the finished stock under the classification used in recording "tput. The output of unfinished stock should be taken imder the i > ) : w 316 EFFICIENCY AND ECONOMY COMMITTEE. I ^::M 41B. 41 C 41 D. 41 G. 41H. classification provided in setting up piece tasks for the prisoners. The inventory so taken will indicate the actual amount of material used in the production of the finished product and the unfinished pieces found m the unfinished stock. The actual amount of material used should then be compared with the specification amount of material required for the unfinished and finished stock on hand. In periods when practically the whole force of prison labor em- ployed in the furniture industry is engaged in the production of one specific kind of output it will be feasible to keep a job cost of the furniture produced and the material may be definitely charged to this particular job. At the completion of this job lot it will then be pos- sible to compare the actual with the specified cost of the production of this lot. Manufacturing Industries — Rattan or Reed, 41. 41A. Salary and wages. Stationery, office supplies and printing. Postal supplies. Heat, light and water. Power. Materials for production. 41 NI. Freight, express and cartage. Charge to this account the cost of all freight, express and cartage paid on material or supplies received or shipped by the rattan or reed industry. Credit the account with the reimbursements of money so expended and for all freight and cartage chargeable to installation or property accounts. 41 X. Ordinary repairs. 41 Y. Extraordinary repairs. 41 Z. Depreciation and loss. 41 SZ. Sundry. 41 AZ. Overtime for prison labor. 41HZ. Hours of prison labor (Statistics). The same type of subsidiary accounts suggested for the furniture industry will also serve for the rattan or reed industry. See under Department account No. 40. Manufacturing Industries — Printing, 42. 42A. Salary and wages. 42B. Stationery, office supplies and office printing. Charge to this account the cost of all stationery and office supplies used in the office operations of the printing Industry, crediting the ac- count with any stationery and office supplies on hand at the time a regular inventory is taken. All office supplies and unused stationery so credited should be debited to an inventory account of the same name. 42C. Postal supplies. 42D. Heat, light and water. 42X. Ordinary repairs. 42Y. Extraordinary repairs. 42N2. Spoiled work. Charge to this account the cost of all spoiled work of the printing industry. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 317 42Z. Depreciation and loss. .42SZ. Sundiy. 42AZ. Overtime for prison labor. 42HZ. Hours of prison labor (Statistics). While these general costs are kept they must be supplemented by the job cost of each job of work done by the industry. In that way the various items of expense classified above will be distributed over the total number of jobs of work done. The supervision payroll should be distributed on the basis of the hours of prison labor devoted to the respective jobs. The hours of prison labor should be classified under the headings of hours spent in stock handling and shipping, hand composition, machine composition, job presses, cylinder presses and bindery. It will be necessary not only to keep a record of the time spent by prisoners in the completion of a job, but it will also be necessary to keep a record of the time each machine used by the laborer is in use. This data will serve as basis of charges of power to the job in question.* It will be necessary to add a percentage of the direct calculated cost of each job, in order to cover the general expense which cannot be distributed directly to the jobs. n. In order to charire machine time to .iobs properly it is necessary to construct a innrlunp r:it^ for each machine. The calculation of this rate raises accountini; ques- tions, which have been purposely avoided in the preparation of the report Every machine should carry its proportionate share of taxes, insurance, repairs, and depre- ril !!h;n r^f "f expenses actually and necessarily incurred in the operation of powpr? ^^^^ ®^ interest and rent? Or, of light, heat, and The argument against the inclusion of interest and rent would be that there is no appreciable outlay of this character. It may be further urged that the State dops ot consider the alternative of renting buildings for penal "and correctional insti- tntions since ordinary buildings are not constructed for such purposes. In the course r>^l?^e^,^^^a^^I;JtTt^e^ahre^rt^e ^'"^^ ^"^ '^'^^^^' ^"^ -^' char/entirn^Sf intejivsstirsrafp^^^t 'o^^ ^^Jsirr^'s^^^^i^frj^^^^^^ ^ Ml rtopartments and industries for which schedules have been prepared One of t^ mportant functions of cost data is to enable responsible executives to compare thl SS-n*"^ departments in different institutions and to compare thrcosts of the^^^ ?s n S Trf rr?riS^ "r F^o<^»^^? in different institutions'^^'f expe^siJe machin^er; iq. Pnont ofWhJ"ul'n7.'''' department in one institution as compared with the he low Jhi ni '^"ther its costs exclusive of interest and rent might be reduced much ^nuinmenf ifL?! ^Y industry or department in the institiition having infeHor of S^nH^J'i*"*.^''^''^ and rent were included as costs in both cases the unit cost hffh or hiX^fioS ^,^n'^^t"^rt or industry with superior equipment migh? be as •'nnJpmenJ ^ TJe^ouest^on'^l.^^ ^^tuV^^ department or industry with the inferio? oosf dnfo «<» A. .Q"^^tion is: Shall the accounting plan have no indication in its imlust?fp«?^ \Y significance of the amount of money invested in Its departments and nienA'n nian? «ni"*^''^^J ''^ ^^'^^ "T t^r>etir^ in the accounts, will not largllnvJ^t "'^ no "iu^'stTflU if i'^?pri«rL'?ST ^"^ ^•;J"««fi«d by lower costs when in'fact th?v indicatini in f^^ interest on the investment were considered? Shall there be no to i^Jc'us avanlbYe'?imds?^* ''''''' "^""'^ ^" ''" "^^^^ profitable direction for [he Sta"te mav"n ot^bI\^iff'^^f3'^*,^^'"®.t!\^*^®""* ^^^"^'^ ^^ taken of interest and rent. While it statistrcal?nhSff''i"*^lV'lf P^^ T^'*^ ^" t^^ financial accounts, it should appear in Of nccornt/n'g \^^,;^, i^f p?o'/isi"5n' for^nrofils^ %-''''-?''i ^" 'K r-«t-Pe?c?n?aT PlaS may be spt nn «= i^ a provision for profits. Similarly, an interest and rent return ^>*^fore it is justified Tt^ff the financial data^, the?e shouM be a ''stbnateVof ni^Ho'^^l'T'"^ 'l" charges In the compilation which were not made as jues of outlays to be incurred in the productive process. The final cTedit to Cf. Cole— Cost Accounting for Institutions, p. 103. t 'i, it Pi Hi k H U w 61 # li l{ , k. ■ 1 t \ 318 EFFICIENCY AND ECONOMY COMMITTEE. The accounting procedure here suggested is sufficient to indicate the character of an appropriate accountancy for the printing industr>'. The details can readily be worked out in the preparation of specific forms suitable to the needs of the locality in question. There is a number of well known systems of accounts for job printmg work recommended by unions and clubs of printers and the principles used in these systems can be applied in determining the exact forms to be drafted for the local situation. " • u j It may be urged that hours of prison labor spent on a job do not serve as a fair basis for the distribution of the supervision payroll on account of the loafing of prisoners. The reply to this is that a system of management which does not tend to eliminate this loafing m a re- formatory is just as much of a failure as a system of management in private business which does not eliminate it. With appropriate ad- justments of the bonus for overtime or task work and a further ap- propriate adjustment of inmate s to the work to be done, giving to cost of finished stock o.in then be readily divided into ontlay cost and cost in ten^^^ of Investment burden. The outlay cost is always a s»7"»t'^;Y* "t Th?s distiifoUon be lost siL'lit of in attempts to load the costs with required returns. This distinction is espeSlv important in State accounting, which must furnish data upon which "^^X'hi'^nrV^^'es^^f u:rprinting industry each machine ^^-«^,Vd 'Yf ^h^e^foll'v! 5? in "irance ' e^he't. ^and (7)'light. ^n ^dition to these itenis of Axed^/^ there must be added the following operating costs: d /<^I>«i»-f ' ""^ (2) P^^^/f^- "^j*^^;; and litrht couhl be dispensed with for certain machines when "«t in operation these items would become operating costs When a power '""I^VJ^V-V ,f "^^^''^^^VonJumP^ it takes into consideration, in determin ng the rate the peak o^'^ ^^^ the ^«"«""iP tion of power. These two items should also be taken into <'on^i^ higher ^or J machine subject to occasional use on account of the increase in the peak load \\hici. ""■Vhe";;?a\'rrshou?d''brestimated as an annual charge ba.sed upon an estimated nun.ber of hours of use of the machine. The repair charge can then be applied as a '''''''Now'i?rus''applv the rates above together with other burden costs in figuring job ?o^ts. It would seem a simple matterSo charge the ^^edjate plus the opera^^ rate against the job in pro{)ortion to the number of hours the machine an as ^^f*^}^'^ ns completion. This wJuUl not cover, l;o^7ever, the fixed rate. ^^;h^h accrues d^^^^^^^ the time the machine is idle. It is not difflcu t to provide f«^,;"«t"b"ting idle m^^ costs at the end of a period such as the month or the year, but this does n«t s m as a basis for a charge to be made for a job at the t me of its ^^^n^PJet^n Cert^'nl^ no machine should be purchased unless an estimate can be "^"^^^^^ o^. the aAer.ij amount of time per year such machine will be used. For the Purpose of the Print'"? plant, therefore, the idle time should be estimated for each "^ac^iine This e.t m te would give a ratio of idle time to used time and a per cent which m»st be jf^^f ^'^.^ hour of use in order to cover idle time. The actual and estimated i^}^Jj^^ r^'^i then be compared each month and at the end of the year the cost of vork uou may be adjusted to correspond to actual costs. fnfnrmntorv This plan contemplates charging idle time for machines used at the I.eforniaior atrainst the jobs done on the machines. If the job cost should exceed the mar k( price of such work outside of the Iteformatory the loss, which the Reformatorj' rnu^ incur. Is cither an educational expense or a Reformatory loss arising from a mi» taken investment in machinery. . ^ x, i. *i l..,^^^^r.^ ^f Ttnchine The application of the principles above set forth to the <'aJculation of macn" rates for the printing machines of the Reformatory requires a nipre «leUiled si, than could be made in this report on the accounts of the institutions. The comi tation of such rates and the designing of forms were postponed to the time wne» reorganization of the accounts should be undertaken. ^. ^ , *^ fhp loh. The material used on a given job should be made a direct charge Jo .tne J The cost of supervision should be distributed to the jobs on the basis of the 'i^'. of prison labor devoted to their completion. Other miscellaneous burden costs i .^. also be distributed in the same way unless their nature clearly Indicates that i ^ are incurred more nearly in proportion to the machine hours ^^/^.^'oted to tne i in which case the latter may be made the basis of their distribution ^ Any oven ^^ payment to prisoners should be charged to the jobs on the basis of the numm ^^ hours of prison labor devoted thereto. If the superintendent found it i/lf^^" ' ^on estimate the time to be required for each job. thereby setting a task for "»*, '. .elv labor, the actual overtime earned on the job in question would be appropn.i . charged to it. ACCOUNTS FOR CORRIXTIONAL INSTITUTIONS. 319 each the task for which he is most fitted, shop loafing can be largely eliminated. No man ought to be permitted to loaf in a shop. If loaf- ing' must be done some place other than the shop should be provided for it. Manufacturing Industries — Clothing, 4^. 43A. Salary and wages. 43B. . Stationery, office supplies and printing. 43C. Postal supplies. 43D. Heat, light and water. 43X. Ordinary repairs. 43Y, Extraordinary repairs. 43G. Power. 43H. Materials for manufacture. 43NI. Freight, express and cartage. Charge to this account the cost of all freight, express and cartage oaid on material or supplies received or shipped by the clothing indus- try. Credit the account with the reimbursements of money so ex- pended and for all freight, express and cartage chargeable to installa- tion or property accounts. 43Z. Depreciation and loss. 43SZ. Sundry. 43HZ. Hours of prison labor (Statistics). The clothing industry, should also be operated on the job cost plan. Every type of garment made should have an estimated or specification cost. This cost shows in detail the materials going into the finished garment. At any time the clothing industry, or the clothing room may receive an order to make a certain number of garments, the fore- man, or superintendent, by the use of the specification costs should estimate the amount of material required for the job. The cutter should be charged by the store room with the material furnished him, and credited with the material returned after the cutting has been done for the order number in question. The amount of, goods or cloth used in cutting should be charged to the job, likewise the trim- mings of all kinds should be charged to the job. When the job is completed the actual amount of material used should be compared with the specification amount estimated to be required. In this way It will be possible to hold the prisoners responsible for wasted ma- terials and spoiled stock. There should also be set up for the clothing industry, or the clothing room, a reasonable task as the amount which each prisoner should perform in a day. The prisoner should be credited with over- time in his efficiency record, as provided in the case of the furniture mdustry. This plan can be worked out in detail to meet the needs of tne locality for each prison. . The industries discussed above are the main industries now ear- ned on at the prisons in Illinois. While there are other industries of ^.^^^onsequences not provided for, the accounting plans indicated will be sufficient to show the type of manufacturing accounts for such tner manufactures as may be in operation, or may be later introduced. ii^^^P 320 EFFICIENCY AND ECONOMY COMMITTEE. CLEARING DEPARTMENTS. I ' Power Plant and Repair — General Administration, 44. 44A. Salary and wages. 44B. Stationery, office supplies and printing. 44C. Postal supplies. 44X. Ordinary repairs. 44Y. Extraordinary repairs. 44Z. Depreciation and loss. 44SZ. Sundry. 44HZ. Hours of prison labor (Statistics). Power Plant and Repair — Boiler Room, 4^. 45L. Fuel. 45N. Water. Charge to this account the cost of water used in the boiler room as may be indicated by the water meter used. 45X. Ordinary repairs. 45Y. Extraordinary repairs. 45Z. Depreciation and loss. 45HZ. Hours of prison labor (Statistics). 45 SZ. Sundry. Power Plant and Repair — Electric Generation Plant, 46. 46A. Salary and wages. 46T. Oil and engine room supplies. 46F. Steam. 46X. Ordinary repairs. 46Y. Extraordinary repairs. 46Z. Depreciation and loss. 46SZ. Sundry. 46HZ. Hours of prison labor (Statistics). Power Plant and Repair — Steam Air Compressor, 47. 47G. Steam. 47X. Ordinary repairs. 47Y. Extraordinary repairs. 47Z. Depreciation and loss. 47HZ. Hours of prison labor (Statistics). Power Plant and Repair — Engine Room, 48. 48G. Steam. 48X. Ordinary repairs. 48Y. Extraordinary repairs. 48Z. Depreciation and loss. 48SZ. Sundry. 48HZ. Hours of prison labor (Statistics). It will be necessary to design a log sheet for the boiler and engine rooms of all the separate boiler and steam engine rooms that may be operated in the institutions. This log sheet should be so designed as to yield the cost information called for in the accounts of the boiler room and engine room and the different plants scheduled under power house and repair. It should also add such additional information as ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 321 an expert engineer may require to enable him to keep constant check oil the efficiency of the respective plants under his control. If an electric air compressor were used exclusively for the operation or pumping machinery to supply water the cost of operation of this pump- ing machinery should be scheduled under the same department as the cost of operation of the air compressor in question, the operation of both of the machinery units being costs of supplying water. The accounting schedules above will also serve to indicate the character of the power plant accounts which should be kept in the furniture industry and stone department. 49G. Electric power. 49X. Ordinary repairs. 49Y. Extraordinary repairs. 49Z. Depreciation and loss. Power Plant and Repair — Electric Air Compressor, 4p. 49SZ. Sundry. 49HZ. Hours of prison labor (Statistics). Fozver Plant and Repair — Heating Mains, ^0. SOX. Ordinary repairs. SOY. Extraordinary repairs. 50Z. Depreciation and loss. SOHZ. Hours of prison labor (Statistics). The same set of accounts will also apply to the electric distributive systems required in furnishing electricity to the various buildings. The cost of the maintenance and repair of electrical and heating equipment of the various buildings is properly chargeable to the maintenance of those buildings. Power House and Repair — General Repairs, 51, SINI. Material — ordinary repairs. Charge to this account all material used in ordinary repairs made on the property of the various departments of the institution. This account should be credited and the departmental account of ordinary repairs charged as each ordinary repair job is finished for the various departments of the institutions. 51N3. Hours of prison labor — ordinary repairs (Statistics). Charge to this account the number of hours of prison labor de- voted to ordinary repairs for the various departments of the institu- tion. This account should be credited and the departmental account of hours of prison labor debited as each repair job is completed. S1N2. Material — extraordinary repairs. Charge to this account all material used in extraordinary repairs made on the property of the various departments of the institution, this account should be credited and the departmental account of extra- ordinary repairs charged as each ordinary repair job is finished for the various departments of the institution. 51N4. Hours of prison labor— extraordinary repairs (Statistics). .1 ^^^^ to this account the number of hours of prison labor de- oted to extraordinary repairs for the various departments of the in- "tutions. This account should be credited and the departmental ac- count of hours of prison labor debited as each repair job is completed. ir * * ^^Jkii il IIV 322 EFFICIENCY AND ECONOMY COMMITTEE. I; ,'\ Power Plant and Repair — Store, ^2. 52A. Salary and wages. 52B. Stationery, office supplies and printing. 52C. Postal supplies. 52D. Heat, light and water equipment. 52Q. Materials — repair and engineering. 52W. Ordinary repairs. 52X. Extraordinary repairs. 52Y. Depreciation and loss. 52SZ. Sundry. 52HZ. Hours of prison labor (Statistics). Subsistence Store Room, 5j. 53A. Salary and wages. In one institution the prison steward buys the supplies for the store room and has complete supervision of its operation, and his salary- will be properly chargeable to this account! In another institution a store room clerk is employed to take charge of all store room property and his salary will be properly chargeable to this account. 53B. Stationery, office supplies and printing. 53C. Postal supplies. 53NI. General supplies. Charge to this account the cost of all supplies received in the store room. This account should be credited with the cost of supplies furnished to the various departments of the institution. At the end of each month the entire balance cost of the mainten- ance and operation of this department, after crediting the department with supplies furnished and on hand, should be distributed to the var- ious departments of the institutions on the basis of the cost of supplies which these departments purchase from the store room and the store should be credited with the amount thus charged to the various other departments. 53NI. Cold storage. Charge to this account the cost of the maintenance of refrigera- tion in cold storage rooms. In case this service is furnished by an ice or refrigeration plant, operation and maintenance clearing account should be credit for the charge. See department 55. 53X. Ordinary repairs. 53Y. Extraordinary repairs. 53Z. Depreciation and loss. 53SZ. Sundry. 53HZ. Hours of prison labor (Statistics). Farm and Garden — Feed Barn, 4^.1. 43.1 A. Salary and wages. 43.1 NI. Feed — corn. Charge to this account all corn gathered from the farm and placed in the store at the current price for corn at that time. Credit this account with corn removed from the barn for sale or feed. Corn purchased and placed in store should be charged to the store at cost. 43.1N2. Feed— oats. See Account 43.NI. 43. IX. Ordinary repairs. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 323 43. lY. Extraordinary repairs. 43. IZ. Depreciation and loss. 43.1NZ. Hours of prison labor (Statistics). Fuel Store, 54. 54Q. Materials — coal. 54NI. Freight, cartage and express. See account ^IXI 54X. Ordinary repairs. 54Y. Extraordinary repairs. 54Z. Depreciation and loss. 54HZ. Hours of prison labor (Statistics). Ice Plant, 55. 55A. Salary and wages. 55B. Stationery, office supplies and printing. 55C. Postal supplies. 55D. Water and light. 55G. Power. 55H. Materials for production. 55X. Ordinary repairs. 55Y. Extraordinary repairs. 55Z. Depreciation and loss. 55SZ. Sundry. .55HZ. Hours of prison labor. (Statistics.) Laundry, 56. 56B. Stationery, office supplies and printing. 56D. Heat, light and water. 56G. Power. (Electric and steam.) 56T. Laundry supplies. 56X. Ordinary repairs. 56Y. Extraordinary repairs. 56Z. Depreciation and loss. 56SZ. Sundry. 56Z. Hours of prison labor. (Statistics.) Charge to this account the number of hours of prison labor devoted to the laundry. There are likewise laundry accounts for the women's prison and warden or superintendent's suites. The classification of accounts will be the same as that for the prison laundry. Clothing Room, 57. The clothing room should be treated as a clearing account in case clothing is made exclusively for the inmates and •officers of the insti- tution. The plan of accounts would be the same, however, as that for the clothing industry discussed under the caption of Manufacturing Industries— Clothing. See Account No. 43. Convict Kitchen and Dining Room, 58. The scheduled accounts of operation and maintenance for this department is the same as that for the officers' kitchen and dining room found under Department No. 63. 324 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 325 ■ m i i Blacksmith Shop, ^p. 59A. Salary and wages. 59B. Stationery, office supplies and printing. 59E. Fuel. 59H. Material for production. 59X. Ordinary repairs. 59Y. Extraordinary repairs. 59Z. Depreciation and loss. 59SZ. Sundry. 59HZ. Hours of prison labor. (Statistics.) Foundry, 60. 60A. Salary and wages. 60B. Stationery, office supplies and printing. 60D. Heat, light and water. 60E. Fuel. 60H. Materials for production. 60X. Ordinary repairs. 60Y. Extraordinary repairs. 60Z. Depreciation and loss. 60SZ. Sundry. 60HZ. Hours of prison labor. (Statistics.) In connection with the operation of the foundry, a job cost record should be kept of all work done, the material used being charged to the job in question. It will be necessary to add to the job cost as indicated by the charge of direct labor and material used, an additional percentage charge required to cover the expense of the maintenance and operation of the foundry as shown by the accounts scheduled above under this department. It is also feasible in connection with much of the work done by the foundry to determine a reasonable task to be performed by individual prisoners, or groups of prisoners, who may be employed in connection with the work of the foundry plant. While the foundry plant at one of the prisons is now scheduled as an industry under the supervision of the Board of Prison Indus- tries, this situation is a heritage from the time when the output of the foundry was disposed of in part in the open market. At the present time the foundry receives no income from the sale of its output either on the open market or to State institutions. Consequently it is appro- oriate that it should be scheduled as a clearing account just as the clothing room is treated in case its output is used exclusively in the institution. The material used by the foundry is furnished largely from the store controlled by the pov;er plant and repair department. This store account should be Credited for all materials so furnished. Barber Shop, 61. 61 A. Salary and wages. 61 B. Stationery, office supplies and printing. 61 D. Heat, light and water. 61 NI. Barber supplies. Charge to this account all soap, toilet water, hair tonic, washes, etc., required for the operation of the barber shop. 61 X. Ordinary repairs. 61 Y. Extraordinary repairs. 61 Z. Depreciation and loss. 61 SZ. Sundry. 61 HZ. Hours of prison labor (Statistics.) Hospital, 62. 62 A. Salary and wages. 62B. Stationery, office supplies and printing. 62C. Postal supplies. 62D. Heat, light and water. 62H. Materials — medical supplies. 62X. Ordinary repairs. 62Y. Extraordinary repairs. 62Z. Depreciation and loss. 62SZ. Sundry. 62HZ. Hours of prison labor. (Statistics.) Prison Administration — Officers' Kitchen and Dining Room, 63. 63A. Salary and wages. 63B. Stationery, office supplies and printing. 63F. Steam furnished for kitchen. 63E. Fuel. 631. Food supplies. Credit 631. with the cost of food served to prisoners in the convict kitchen connected with the officers' kitchen and dining room, debiting Account 211. with the amount so credited. In case the same bill of fare is used for the prisoners as that for the officers, the per capita charge for food should be the same as that for the officers' dining room. In case the daily menu of the convicts of the officers' kitchen differs from that of the officers, the indication of this difference will furnish the basis for crediting the officers' regular kitchen and dining room with a fair cost of food for the prisoners. 63X. Ordinary repairs. 63Y. Extraordinary repairs. 63Z. Depreciation and loss. 63SZ. Sundry. 63HZ. Hours of prison labor. (Statistics.) SCHEDULE OF PROPERTY ACCOUNTS BY DEPARTMENTS. In order to abbreviate the definitions of the property accounts in the various departments a brief general discussion of the accounts appeanng under the various captions is made as an introduction to the schedule. The departmental property accounts are given a number equal in each case to 100 plus the number of the operation and maintenance lor the same department. For example, the operation and main- tenance number for the office of the chief clerk or general accountant s :).l and the corresponding number for the department property accounts is 105.1. The letters refer to the account definitions in the S.'^'. 326 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS 327 introduction. Accounts in any department not defined in this intro- duction are given the number of the department with Nl, N2, etc., added. Any division of an account is indicated by repeating the letter designating the account in the introduction. The second division of furniture and fixtures being cc. instead of c. a — Land. No definite plot of land is connected with the respective build- ings of the institution grounds, so that it becomes necessary, in case of the land used for institution buildings, to schedule a general land account. The account is debited with the original cost of the land upon which the buildings are located. h — Buildings. These accounts as appearing in the various departments of the institution always refer to the cost of a building in which an industry or department is operated. In the case of the offices of the warden house this item of the property account is omitted since it is included in the property accounts of the warden house. If it were found desirable to distribute the cost of the warden house as a property charge to the various departments some arbitrary basis might be taken for such a distribution. Similarly the cost of operation of the warden house might have been distributed -to the various departments located therein. c — Furniture and fixtures. The furniture and fixtures of the various departments refer mainly to office furniture, dining room furniture, book-cases, etc. The fixtures refer to feed boxes, sinks, tanks, rails, shelves and all fixtures added from time to time and not included in the original cost of the building. The account is credited with depreciation and loss. Any furniture removed from one department to another should be credited to the department from which it is taken and debited to the depart- ment to which it is moved. If such removals are taken due account of the furniture and fixtures of the preceding inventory plus the pur- chases during a given year should represent the inventory at the end of the year. Any shortage should be debited to the account of over, shortage and loss and credited to the property account. d — Office equipment. The term, office equipment, refers to typewriters and various ap- pliances of a similar nature used for the purpose of increasing or im- provng the effectiveness of office work. The depreciation and loss account for this equipment should be treated in the same way as the similar account for furniture and fixtures. See account c. The account should be debited with all additions of office equipment and credited with any equipment which may be scrapped or removed from one office to some other department. e — Heat, light and water equipment. This account should be debited with the cost of heat, light and water equipment of the various buildings and all additions thereto. Do not charge to this account the cost of mains and distributive equip- ment connecting the power plant with the various buildings. The account is credited with depreciation and loss, as indicated in account Z, Chapter 1, Part III. / — Machinery and equipment. This account found under the various departments refers to the durable machinery and equipment of the department other than the office equipment noted above. The account should be debited with the cost of all machinery purchased for the use of the department in question, with the cost of installing this machinery purchased for the use of the department and with the cost of freight and cartage there- on. It should be credited with the original cost of all machinery and equipment consigned to the scrap heap, and should be debited with the cost of new equipment purchased, either as an addition or a re- placement. g — Tools and implements. This account should be debited with the cost of tools and imple- ments transferred from one department to some other department, which should be debited with the amount so credited. The depart- mental tools and implements found in the inventory at the first of the new year or period plus the purchases during the period should be the inventory on hand at the end of the period in question, when a new inventory is taken, if no depreciation and loss took place. The cost of the tools not so found in taking the new inventory should be credited to the account and charged to over shortage and loss of tools and implements for the year. h — Beds and bedding. Charge to this account the cost of all beds and bedding including bed-springs, bedsteads, mattresses, blankets, pillows, quilts, sheeting, etc. The account should be credited with all bedding condemned, lost or consigned to the scrap heap during thd year, over, shortage and loss being debited with the amount credited. . i — Kitchen equipment. The term kitchen equipment as employed in this report refers to ranges, boilers, kettles, pans, and all of the appliances which in the regular industries may be classed under the caption of machinery and equipment. In addition to ordinary depreciation in the department there will be losses, as found by comparing the new inventory with the preceding inventory and the purchases during the year, which should be credited to the account and charged to over, shortage and loss. J—Tahle furnishings. Charge to this account the cost of all crockery, glassware, dishes, cutlery, table linen and other miscellaneous items of table furnishings used in the dining rooms of the various departments in which the account is fou^d. In addition to the ordinary depreciation of these turnishings the account should be credited with all table linens con- demned, or all table furnishings condemned, and with all breakage 1 ; i . i 328 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 329 |l '^ ! 1* 1 1 I I) I and loss, which may be found by comparing the new inventory with the preceding inventory plus purchases made during the period between inventories. k — Live stock. The respective live stock accounts should be charged with the cost of teams, dairy cows, and such live stock as may be properly regarded as a permanent investment of the operating department. In the case of hogs and chickens which are raised and disposed of largely within the year produced, the outlays should be charged to the oper- ation and maintenance account and no regular property account would appear except in connection with the regular inventories when the inventories of live stock on hand would be debited at the same time the profit and loss accounts were credited. 2 — Sundry. Charge to this account the unclassified expense of the various departments in which the account appears. DEPARTMENTS SOPPORTED MAINLY BY GENERAL REJ'ENUES. General Administration — Board of Prison Administration, loi. 101c. Furniture and fixtures. lOld. Office equipment. 101 z. Sundry. Prison Administration — Warden's Office, 102. 102c. Furniture and fixtures. 102d. Office equipment. 102z. Sundry. Prison Administration — Warden House Building, 10^. 103b. Buildings. 103c. Furniture and fixtures. Charge to this account the cost of all furniture an.! fixtures, except that charged to the property accounts of the warden office or the general accountant's office, the kitchen and dining room of the warden suite and such other offices as may be given departmental accounts with departmental furniture, fixtures, etc. 103h. Beds and bedding. 103e. Heat, light and water equipment. 103f. Machinery and equipment — power. 103z. Sundry. Prison Administration — Institution Grounds, 104. 104a. Land. Charge to this account the cost of the land upon which the prison industries and buildings of the institution proper are located. 104nl. Improvements. Charge to this account the cost of fences, platforms and mis- cellaneous improvements on the institution grounds. 104z. Sundry. Prison Administration — Warden or Superintendent's Suite, 105. 105c. Furniture and fixtures of the dining room and kitchen. 105i. Kitchen equipment. 105j. Table furnishings. 105z. Sundry. Prison Administration — General Accountant's Office, 105.1. 105.1c. Furniture and fixtures. 105.1d. Office equipment. 105. Iz. Sundry. Prison Administration— Officers' Subsistence, 106. See Department No. 163. Prison Ad ministration-r-W omen's Prison— Officers' Building, 107. 107b. Building. ' • ' 107c. Furniture and fixtures. 107e. Heat, light and water equipment. This account should not include the power house equipment of the women's prison which is included in the property clearing accounts. . -^ ^ -^ *> 107h. Beds and bedding. 107f. Machinery and equipment — power. Charge to this account the power equipment of the women's prison with the exception of the power equipment of the endne and boiler rooms of the power plant. 107SZ. Sundry. Prison Administration— Women's Prison— Officers' Kitchen and Din- ing Room, 108. 108c. Furniture and fixtures. 108i. Kitchen equipment. lOSj. Table furnishings. lOSz. Sundry. Prison Administration— Women's Prison— Confinement and Disci- pline, I op. 109b. Building, cell houses and cells. 109c. Furniture and fixtures— office. 109cc. Furniture and fixtures— cell houses. 109e. Heat, light and water equipment. 109h. Beds and bedding. 109z. Sundry. Prison Administration— Confinement and Discipine of Male Prisoners, ^ * * • 11 lb. Building, cell houses and cells. lUc. Furniture and fixtures— cell houses, nice. Furniture and fixtures — offices, lllh. Beds and bedding. J lie. Heat, light and water equipment. 11 iz. Sundry. ■I 330 EFFICIENCY AND ECONOMY COMMITTEE. ! \ 1 ^ IN 1 •^'•vajL^ Prison Administration — Parole Prisoners, ii2. 112c. Furniture and fixtures. 112d. Office equipment. 112z. Sundry. Prison Administration — Receiving and Discharging Prisoners, ii^. 113c. Furniture and fixtures. 113d. Office equipment. 113z. Sundry. Prison Administration — Institution Teams and Vehicles, 114. 114b. Buildings. 114k. Teams. 114z. Sundry. IHnl.Vehicles. Charge to this account the cost of all vehicles purchased for the use of the administrative officers of .the institutions. The account should be credited with the cost of vehicles purchased for the use of administrative officers of the institution. The account should be credited with the cost of vehicles that are consigned to the scrap heap. 114nl. Harness. Charge to this account the cost of all harness purchased for insti- tution teams. Credit the account with condemned harness and harness consigned to the scrap heap. Prison Administration — Institution Automobiles. 115. 115b. Buildings — garages. , • llSnl. Automobiles. Charge to this account the c6st of all automobiles purchased for the use of the administrative officers of the institution proper. Do not charge to this account the cost of farm automobiles. Credit this account with the autbmobiles consigned to the scrap heap. 115z. Sundry. Maintenance of Male Prisoners — Subsistence, 116. Property accounts under department 158. Maintenance of Male Prisoners — Sanitation, 11 j. Property accounts under department No. 162. Maintenance of Male Prisoners — Laundry, 118. Property accounts under department No. 156. Maintenance of Male Prisoners — Barber Work, up Property accounts under department No. 161. Maintenance of Male Prisoners — Miscellaneous Furnishings, ^20. Property accounts under department No. 143. Maintenance of Female Prisoners — Subsistence, J2i. Property accounts under department No. 158. Maintenance of Female Prisoners — Sanitation, 122. Property accounts under department No. 162. Maintenance of Female Prisoners — Laundry, 12^. Property accounts under department No. 156. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS 331 Maintenance of Female Prisoners — Miscellaneous Furnishings, 124. Property accounts under department No. 157. Religious and Educational — Religious Instructions, 125. 125b. Building. 125c. Furniture and fixtures. 125d. Office equipment. 125c. Heat, light and water equioment. 125z. Sundry. Religious and Educational — General Education, 126. 126b. Building. 126c. Furniture and fixtures. , 126d. Office equipment. 126e. Heat, light and power. 126nl. Educational apparatus and equipment. Charge to this account the cost of all laboratory equipment, maps, and illustrative material used for educational purposes. The account should be credited with depreciation and loss of scrapped equipment at the time of taking the regular inventory and with any apparatus and equipment removed from the building during the year 126z. Sundry. Religious and Educational — Trade Schools. 127. 127b. Buildings. 127c. Furniture and fixtures. 127d. Office equipment. 127e. Heat, light and water equipment. 127nl. Educational apparatus and equipment. See account ^c, 126nl. 127z. Sundry. Farm and Garden — Prisoners' House, 128. 128b. Building. 128c. Furniture and fixtures. 128e. Heat, light and water equipment. 128h. Beds and bedding. Parm and Garden— Prisoners' House, Subsistence, i3Q. For form of property statement see department 106. DEPARTMENTS SUPPORTED MAINLY BY EARNINGS. Parm and Garden — Administration, ijo. 130b. Buildings. Charge to this account the cost of buildings on premises of the superintendent, or of any other farm officer employed to supervise larming operations and assigned to a farm building owned by die institution. See Account B. ^ j 130c. Furniture and fixtures. 130e. Heat, light and water. 130i. Kitchen equipment. 130j. Table furnishings. 130z. Sundry. i 5 u W i \l ^ I 332 EFFICIENCY AND ECONOMY COMMITTEE. Farm and Garden — Officers' Subsistence, i^i. Property accounts under department No. 129. Farm and Garden — Automobiles, 1^2. Of the same form as property accounts under prison idmin:s- tration. Farm and Garden — Machinery, Implements, Vehicles and Harness, ^33- 133a. Land. 133b. Buildings. Charge to this account the cost of buildings used in housing farm implements, vehicles and harness. 133f. Machinery and equipment. 133g. Tools and implements. 133nl. Harness. Charge to this account the cost of all harness purchased for the use of farm teams. Credit the account with d^reciation and loss on harness. 133n2. Vehicles. Charge to this account the cost of all wagons, buggies and other vehicles purchased for the use of the farm and garden. Credit the account with depreciation and loss on farm wagons, buggies,and other vehicles, consigned to the scrap heap. 133z. Sundry. Farm and Garden — Power Machinery, 133.1. 133.1b. Buildings. 133.1 f. Machinery and equipment — power. 133.1z. Sundry. Farm and Garden — Farm Teams, 134. 134a. Land. 134b. Buildings. Charge to this account the cost of buildings used as stables for farm teams. 134nl. Farm teams. Charge to this account the cost of farm teams, crediting the account with depreciation and loss of farm teams. 133z. Sundry. Farm and Garden — Land and Improvements, 135. 135a. Land. Charge to this account the cost of all land devoted to farm and garden purposes. 135nl. Land improvements. Charge to this account the cost of roads, drainage, equipment, fences and other miscellaneous improvements on the farm and garden. 135z. Sundry. Farm and Garden — Corn Crop, 136. 136a. Land. Charge to this account all land planted in corn for the year. Credit the clearing account of Land No. 135a with the amount so ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 333 charged to the corn crop. In taking the inventory of the year this account should be closed into the general farm and garden land account, No. 135. Charge this account with a fraction of the total investment in the property listed under departmental accounts Nos. 133, 133.1, and 134. This fraction should be the ratio of the number of horse hours devoted to the cultivation of corn to the total number of horse hours devoted to the cultivation of farm corn crops. The account should be closed out at the end of the year into the accounts here referred to by numbers. Farm and Garden — Hogs, jJ/. 137a. Land. 137b. Buildings — hog barns. 137c. Furniture and fixtures— hog barns and yard. See account c. 137z. Sundry. At the end of the year the inventory of hogs on hand should be closed out into the current inventory of stock on hand under the department of farm and garden hogs. Camps — Camp Dunne, 138. 138f. Machinery and equipment — kitchen. 138nl. Automobiles. 138z. Sundry. Stone Department, 13Q. . The property accounts of the stone industry are the same as those tor the furniture mdustry, except that in addition to one steam power plant there is an electric station with several motors and a compressed air plant to be closed out in the power equipment account at the end of the year in the case of the stone department. Manufacturing Industries — Furniture, 140 140b. Buildings. 140c. Furniture and fixtures. 140d. Office equipment. 140e. Heat, light and water equipment. 140f. Machinery and equipment — power. « ;ii u ^^^ ^"^ ^^ ^^^ ^^^^ ^^^ P^w^^ P^a^t of the furniture industry ^m be closed out into the general property accounts of the furniture inaustiy, the account of power equipment being debited with the total property of the power plant. 140ff. Machinery and equipment— industry proper. 140g. Tools and implements. 140z. Sundry. he n ^^ ^^^ ^^^ ^^ ^^^ ^^^^ ^^^^" ^^^ inventories are taken there will storl? '"^j"tory account of raw materials on hand, one for unfinished tor^ and one for finished stock on hand. There will also be inven- surmlfi'''''''"u^ under the furniture industry for stationery and office uppues on hand and one for postal supplies on hand. Manufacturing Industries— Rattan and Reed, 141. samp Property accounts of the rattan and reed industry will be the PovvL^^ ^ ^^^ °^ *^^ furniture industry, with the exception that no ^ ^^er House accounts will be found for rattan and reed. i^^ yA EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 335 I M \i 'H I I I i ill '^ Manufacturing Industries — Printing, 142.^ 142b. Building. 142c. Furniture and fixtures — office. 142e. Heat, light and water equipment. 142f. Machinery and equipment — power. 142ff. Machinery and equipment — printing machines. 142fff. Machinery and equipment — hand presses. 142ffff. Machinery and equipment — punching and perforating machines 142fffff. Machinery and equipment — sundry. 142g. Tools and implements. 142z. Sundry. Manufacturing Industries — Clothing, 14^. The schedule of property accounts for the clothing industry is the same .is that for the furniture industry. CLEARING DEPARTMENTS. Faryn and Garden — Feed Barn, 143.1. 143a. Land. 143.ib. Building. 1-I3.'c. Furniture and fixtures. 143. Iz. Sundry. Power Plant and Repair — General, 144. 144b. Building. 144c. Furniture and fixtures. M^d. Office equipment. 144z. Sundn.'. Pozver Plant and fiep'tir — Boiler Room, 145. 145f. Machinery and equipment. 145g. Tools and 'mplements. 145z. Sundry Power Plant and Repair — Electric Generation Plant. 146. 146b. Building. 146f. Machinery and equipment, including electric mains. 146g. Tools and implements. 146z. Sundry. 146c. Furniture and fixtures. Power Plant and Repair — Steam Air Compressor, 14'j. 147f. Machinery and equipment — steam air compressor. 147z. Sundry. Power Plant and Repair — Engine Room, 148. 148f. Machinery and equipment. 148g. Tools and implements 148z. Sundry. Power Plant and Repair — Electric Air Compressor, 14Q. 149f. Machinery and equipment. 149z. Sundry. a. See also Note, Maintenance and Operation Accounts, 42HZ, p. 69. Power Plant and Repair — Heating Mains, i^o. iSOnl. Heating mains. Charge to this account the cost of all heating mains connecting the boiler plant with the various buildings, industries and departments of the mstitution. The account should be credited with depreciation and loss of replaced mains. 150z. Sundry. Power House and Repair — Repair, Workshop, 151. 151g. Tools and implements. 151z. Sundry. Subsistence Store Room, 1^2. 152b. Building. 152c. Furniture and fixtures. 152f. Machinery and equipment. 152z. Sundry. Power Plant and Repair — Store, 153. 153b. Building. 153c. Furniture and fixtures — store room. 153cc. Office equipment. 153z. Sundry. Fuel Store, 154. 154b. Buildmgs. 154g. Tools and implements. 154z. Sundry. Ice Plant, 155. 155b. Building. 155c. Furniture and fixtures. 155f. Machinery and equipment. 155g. Tools and implements. 155z. Sundry. Laundry, 1^6. 156c. Furniture and fixtures. 156f. Machinery and equipment. 156z. Sundry. ^ Clothing Room, i^'j. tli. J^^ Property accounts of the clothing room will be the same as tne prq)erty accounts of the clothing industry referred to in account Convict Kitchen and Dining Room, 158. No Tnr ^^!'?^"^|' ^^^ the same as those scheduled under Department for tl!^ ' ''''• I^^ exception that an account of building is required lor the convict kitchen and dinirg room. cquirea Blacksmith Shop, ifj^. 159b. Building' |59f. Machiner)^ and equipment. 159g. Tools and implements. f< 336 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 337 Foundry, i6o. 160b. Building. 160c. Furniture and fixtures. 160c. Heat, light and water equipment. 160g. Tools and implements. Barber Shop, i6i. 161c. Furniture and fixtures. 161g. Tools and implements, • 161z. Sundry. Hospital, 162. 162b. Building. 162c. Furniture and fixtures — office. 162e. Heat, light and water equipment. 162g. Tools and implements. 162h. Beds and bedding. 162z. Sundry. Prison Administration — Officers* Kitchen and Dining Room, i6j. 163c. Furniture and fixtures. 163i. Kitchen equipment. 163j. Table furrishings. 163z. Sundn^ PART IV. EXHIBITS. EXHIBIT 1. FORM OF EXHIBITS FOR FOOD SERVED IN ALL KITCHENS AND DINING ROOMS. This exhibit should be employed in connection with subsistence accounts of all departments. So. 111. Per Ill.S. Per 111. S. Per Pen. Capita Pen. Capita Ref. Capita Butter .. Butterine Beans . . Frcad and crackers. Cereals, rice, etc Cheese Corn meal E:4gs ". Floi r Fruits (dry) Fruits (fresh) Meats — Beef (fresh) Beef (com or dry) Fork (fresh) Pork (salt) Sausage Sundry Macaroni Milk Molasses Spices, seasoning, etc Sugar Tea, coffee, cocoa ! . Vegetables- Cabbage Onions Tomatoes '.......... Green vegetables ...... . Other sundry vegetables...". Yeast Sundries . 338 EFFICIENCY AND ECONOMY COMMITTEE. ACCOUNTS FOR CORRECTIONAL INSTITUTIONS. 339 I I \ H & n K u (A ••• V) ^5 Wo? <:2 • • • • • • • • • • • • • • • • • • • • • • • • • • » • • • • • • • • (u d • in • 3 CO • = T : • • • . • • • • • • • • • • • • • • a CO :S : p. Ul Vi V o CO 6 u CO rrt I rt CO O co^.S^ O *- ^-« Ti T3 01 be •- S ^ i>^ r" 3 C ;S ti ^ 5-2 t*^ S^ *5 c: rt'-^ 3 «Ji 3 3 P 3 w ^^ 3 a • • • « • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . . ^ -« O rj ^ o a t- ? «^ *'"3 * a^ 2 »< o ^ a . »-< _^ »^ .^^ M C ^ Oi 03 a> c « !S 3 J' ^ S ^ »-l — < fl -?Cf5 »-rH 2 t3 • o m f»j.p« 03 2St^^o ^t^ i: *^ ? >>o! a: t- O (T S -S .© '' So a^ « -w 3 t, J; " ai C a* a u,2 w a KXIIIBIT 3. A SUGGESTED FORM OF MEMORANDUM LEDGER FOR OUT- STANDING ORDERS AND AVAILABLE BALANCES. On the left or debit side of the account. 1. Date of order. 2. Order number. 3. Order estimate. 4. Amount of invoice. On the right or credit side of the account. 5. Order number. 6. Order estimate. 7. Voucher number. 8. Amount vouchered. Then on the extreme right or elsewhere on the ledger page there should be the following information: 9. Date. 10. Outstanding orders. 11. Outstanding invoices or bills. As orders are made, they should be entered in columns (1), (2), and (3). When the invoice covering an order is received entries should be made in columns (4), (5), and (6). When vouchers are made out, entries should be made in columns (7) and (8). The total of column (3) less the total of column (6) will equal the amount of outstanding orders for which bills have not been received. The total of column (4) less the total of column (8) will be the balance of outstanding bills against any account. A requirement that all invoices refer to the institution order number will facilitate the keep- ing of this record. The procedure above outlined requires that all orders arise within the institutions. While the Fiscal Supervisor makes all contracts and awards, the routine of purchasing under arrangements made would be done in the institutions. No purchases on any account in excess of the amount allotted for the month should be made except in cases of emergency unless such excess is first approved by the Board of Prison Administration. ' - H Hi t^ £ ,• * n A REPORT I = 'I ON CHARITABLE and CORRECTIONAL INSTITUTIONS BY JAMES W. GARNER PROFESSOR OF POLITICAL SCIENCE UNIVERSITY OF ILLINOIS I \ t i^< r« J CONTENTS. Page [ Charitable and Penal Administration in Illinois 345-371 A. General Observations 345 B. Charitable Institutions 346 1. Organization and Administration before 1910 347 The State Board of Public Charities 348 2. Present Organization 351 The Board of Administration 351 Fiscal Supervisor 353 The Charities Commission .354 Boards of Visitors 355 Appropriations 356 C. Penal and Reformatory Institutions 357 1. Separate Boards 357 2. The Board of Prison Industries 359 3. Board of Classification 359 4. The Penitentiary Commission 359 5. The State Board of Pardons 360 D. Comparison of the Charitable and Penal Systems .362 Advantages of the Central Board System 363 Criticism of the Central Board System 371 II. Charitable and Penal Administration in Other States and Countries. Countries. • 372-395 A. In Other States 372 1. Central Boards of Control 372 2. State Boards of Charity 381 3. Boards of Pardon and Parole 382 4. Opinions on the Central Board System 383 Success in Other States 383 Expert Opinion in Favor of Centralized Control of Penal Institutions 386 Criticism of Centralized Administration 388 B. In Foreign Countries 391 1. In England — Poor Relief 391 Care of the Insane 391 Penal Institutions 392 2. In France — Charity Administration 393 Prison Administration 394 3. In Germany — Charitable Institutions 395 Penal Institutions 395 • ^suggestions and Recommendations. 396-402 A. Charitable Institutions 395 ^' Penal and Reformatory Institutions 397 Comparative Expense 40I IV a. r A REPORT ON CHARITABLE and CORRECTIONAL INSTITUTIONS By Professor James W. Garner, University of Illinois. I. CHARITABLE AND PENAL ADMINISTRATION IN ILLINOIS. A. GENERAL OBSERVATIONS. For the care and maintenance of the defective, delinquent and other dependent classes and for the confinement of convicted criminals, the State of Illinois maintains twenty-five institutions, counting three that have been authorized but which have not yet been established, namely, the Alton State Hospital, the Epileptic Colony, and the Surgical Insti- tute for Crippled Children. Administratively speaking, they fall into two classes: First, the twenty-two charitable institutions which are under the control and management of a central body known as the Board of Administration and which are subject to the visitation and inspection of the State Cliarities Commission ; second, the two State penitentiaries at Joliet and Menard and the State reformatory at Pontiac, each of which is under the control and management of a separate board. There is also another board which has charge of the construction of a new penitentiary, a t^oard of prison industries, a board of classification, and a board of pardons. None of the seven last named boards are under the juris- diction of the Board of Administration or the Charities Commission. The following table contains a list of the charitable, penal and ^tormatory institutions of the State, with the date of their establish- ment, the place of location, the value of their property (1910-1912) e number of their employees, and the per capita cost of maintenance! 346 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 347 w\ II I STATISTICS RELATING TO ILLINOIS STATE CHARITABLE AND CORRECTIONAL INSTITUTIONS CHARITABI-K INSTITUTIONS Date Established. C o © 2 Number of Buildings. o © ca Value of Property. No. of Employees 1911-12 No. of Inmates, 1911-12. Per Capita Cost of Main- tenance, 1911-12 Hospital, Elgin State 1869 1877 1847 1869 1895 . 1895 1889 1912 1865 1839 1849 1887 1885 1895 1865 1871 1893 1901 Elgin 29 61 32 22 47 43 11 42 34 22 17 2 56 3 20 1 22 47 510 840 343 449 593 576 17 234 529 158 40 7a 222 15 96 4a 240 921 $ 1.247.603 1,914,833 1,237.527 1,300,465 1.020.010 1,283.942 125,388 1,519,128 1,009,937 432.243 361,244 110.171 871.328 67,075 281.916 290.747 499.991 753.921 277 450 240 222 180 294 29 306 185 124 67 14 73 22 52 50 84 70 1.475 2.653 1.599 1.572 1.401 2.034 220 674 1,357 398 190 100 1.417 71 271 169 448 522 S140 00 Kankakee .. " Jacksonville " Anna Kankakee .. Jacksonville Anna 13S.71 130.12 142 03 " Watertown.. " Peoria Watertown. Peoria 121.73 139 .59 " Chester Chicago Lincoln State School and Colony Menard Dunning Lincoln Jacksonville Jacksonville Chicago Quincy. 188.90 170.32 149 OS School for Deaf 297.41 School for Blind Industrial Home for the Blind Soldiers' and Sailors' Home 308.25 295.46 151 98 Soldier's Widows' Home Soldier's Orphans' Home Charitable Eye and Ear Infirmary Training School for Girls St. Charles School for Boys Wilmington Normal Chicago Geneva St. Charles Kankakee .. 360.25 248.08 279.03 208.91 237.03 PsycoDathic Institute Alton St. Hospital.... 1911 1913 1911 Alton Epileptic Colony. Surgical Institute Totals. Cliaritable Institutions 511 5.783 $14,327,472 2.751 16..')78 $1.';6.87 CORRECTIONAL INSTITUTIONS Illinois State Pen'ry South. 111. Pen'ry 1857 1877 1867 Joliet . .. $ 1.887.279 1.602.401 1.022.661 116 109 107 191 1.376 1.185 681 0-12 $ 175.20 Menard . 197.10 Illinois State Reformatory Totals, Correctional Institutions Pontiac 255.50 $ 4,512.341 332 3,242 $208.05 Grand Total $18,839,813 3.083 19,820 a — City Lots. From the standpoint of the classes of dependents for the care and maintenance of whom these institutions have been established, the charitable institutions may be grouped into four divisions: (a) those for mental defectives, including the criminal insane and feeble minded children; (b) those for physical defectives, such as the blind, the deaf, the dumb, crippled children, and those afflicted with diseases of the eye or ear; (c) those for honorably discharged soldiers and sailors and their dependent orphans and widows; and (d) those for delinquent boys and girls. The law denominates as "charitable" all the institu- tions created for the care of these several classes of persons, although strictly speaking some of them, like the training schools for delinquent children and the asylum for insane criminals, are not in reality chant- able institutions, and they were not so designated by law prior to 1909. The Act of June 15, 1909, however, includes them in the category of "charitable" institutions and subjects them to the inspection and inves- tigation of the State Charities Commission, along with the other more strictly charitable institutions. It will be seen from the accompanying statistical tables that the total number of inmates in all these institutions is about 20,000, that tliey embrace an aggregate of more than 500 buildings, and that the total valuation of their property is about $19,000,000. The total legis- lative appropriations for 1913-15, amount to $12,775,993. B. CHARITABLE INSTITUTIONS. 1. Organisation and Administration Before 1910. The first State charitable institution to be established in Illinois was the asylum for the education of the deaf and dumb, which was located at Jacksonville in 1839. It was placed under the control of a board of directors appointed by the Governor, the immediate man- agement being vested in the hands of a superintendent chosen by the board. In 1847 a hospital for the insane was established, and it, too, was located at Jacksonville. It was placed under the control of a board of trustees appointed by the Governor for a term of three years. The board was empowered to choose a superintendent for a term of two years and to remove him for unfaithfulness or incompetency. The in- mates of the asylum were required to pay the cost of their maintenance wherever possible ; in case they were unable, the expense was borne by the counties from which they came. In 1851 the expense of main- taining insane paupers was transferred from the counties to the State, thus making the asylum more definitely a State institution. The num- ber of persons received from each county was based upon the popu- lation of the county. The third of the State charitable institutions to be established was the institution for the blind, also located at Jackson- ville (1849). It was placed under the control of a board of five trustees appointed by the Governor for a term of four years. In 1851 the term was reduced to two years. By an act of 1853 the government of the three institutions was somewhat modified with a view to uniformity. The number of mem- bers of the boards of trustees of the asylum for the insane and the institution for the deaf and dumb was fixed at six and their terms of service at four years. The size and term of the board of trustees of the institution for the education of the blind was unaffected by the act. None of the trustees had received any compensation for their serv- ices or an allowance for their expenses. The Act of 1853, however, provided that henceforth their travelling and personal expenses in- curred in the performance of their official duties should be paid out Or the funds of the institution. Accounts of each institution were required to be kept and reported so as to show the kind, quality and cost of every article purchased for the institution and the name of the person of whom bought. The law contained other provisions which indicated a centralizing tendency and a desire to secure greater uni- lormity in the organization and management of the institutions. II i H 348 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 349 In 1865 provision was made for two other institutions. These were the Soldiers' Orphans' Home, located at Normal, and the school for the mstruction and training of idiots and feeble minded children located at Lmcoln, and now known as the Lincoln State School and Colony. The former was placed under the control of a board of nine trustees appomted by the Governor for a term of two years; the latter was placed under the control of the directors of the asylum for the T 1 oro^ ^""^^' ^° ^^^ ^^ ^^^^ expenditures of its funds were concerned In 1869 two additional hospitals for the insane were created, one bein^ located at Elgm, the other at Anna. Like the other charitable insti- tutions each was put under the control of a board of trustees. At the time of the adoption of the present constitution, therefore seven State charitable institutions had been established, each under the cwitrol of a separate board of trustees of varying size and terms of ottice. There was no correlation among the different institutions and but little uniformity of policy. Each purchased its own supplies and managed its own affairs without respect to the others. The boards of trustees were required to make reports to the Legislature and the in- stitutions were biennially visited by committees of the Legislature, but further than this there was no machinery of inspection, no unifying agency, no legally recognized body of experts with the power to inves- tigate the conditions of the institutions and recommend legislative or administrative measures for their improvement. The State Board of Public Charities. Some degree of central supervision over these institutions was provided by the creation, in 1869, of the Board of State Commissioners of Public Chanties, popularly known -as the State Board of Charities. The board was composed of five members appointed by the Gov- ernor, with the consent of the Senate, for a term of five years. Tiie members received no compensation other than an allowance for their expenses and for any necessary outlay incurred in making investiga- tions. They were authorized to employ a salaried secretary. It was made their duty, or that of some one of their number, to visit all the charitable and correctional institutions, except prisons receiving State u ^^-^A^ ^ ^^^^ ^"^ ^° ascertain whether the funds appropriated for their aid had been economically and judiciously expended, whether the laws had been complied with and whether the institution had "accom- plished Its purpose." They were required to report the results of their investigations to the Governor annually and to make any special investigations which he might direct them to make. They were also required to visit at least once a year and examine into the condition of each county and city alms house and other places where the insnne were confined and to report thereon in writing to the Legislature. They were empowered to appoint a board of auxiliary visitors in each county, consisting of three persons, to visit all county alms houses, jails and other places (other than State institutions or licensed private insti- tutions for the care of the insane), in which any person of unsound mind was confined. «.rp«Vp^'^lif''?»?;7^'if A^tJ^ ^^"^^ correctional Institutions: the Penitentiary at JoHet. Tfn^^i i ?r^'l. *°^ V^^, Reformatory at Pontiac, created In 1867. The Southern Illinois Penitentiary at Menard was not established until 1877. The trustees and directors of each institution were required to make a full and detailed biennial report to the board concerning their financial and other transactions, which report, if found correct by the board of charities, was to be delivered by them to the Governor. The creation of the State Board of Charities was an important step in a slow movement toward a more centralized system of administra- tion for the charitable institutions, a movement which finally resulted in the creation of the Board of Administration in 1909. The Act of 1869 also made certain changes in the administrative organization of the charitable institutions. The number of trustees on the governing boards of most of the institutions w^as reduced to three, a measure designed to secure a more effective responsibility and efficiency of management; and the Governor was given power to remove any trustee or director whenever in his judgment the best interests of the institution required, the only limitation being that he was required to communicate to the General Assembly the reasons for his action. The first State Board of Charities was organized in April, 1869. It divided the State into five districts and assigned one member of the board to each district. During the first year of its existence 43 alms houses and 60 jails were inspected. One of its first acts was to take a census of idiots and insane persons, and, upon its recommendation, the Legislature, in 1872, gave it full authority to collect and tabulate statistical and other information regarding the number of persons in the State who were receiving charitable relief and the methods by which this relief was distributed. Upon the urgent recommendation of the State Board of Charities the Legislature in 1875 enacted an important law "to regulate the State charitable institutions (then eight in number) and the State reform school (at Pontiac) and to improve their organization and increase their efficiency." The act provided that each institution should be under the control of a board of three trustees appointed by the Gov- ernor for a term of six years, no county to be represented by more than one trustee on any board ; the Governor was given the power to remove any trustee for good cause ; the superintendents of the insane asylums and the institution for the feeble minded were required to be educated and competent physicians;" the principal executive officer of each institution was to be a superintendent appointed by the board ot trustees and he was to be the financial agent of the trustees; each institution was to have a treasurer whose books and papers were to be open to the inspection of the trustees at all times; the trustees were to receive no compensation other than their actual expenses and they were required to hold meetings at the institution at least once every three months; they were required to purchase supplies wherever they could o'>tain the best quality at the lowest price, and in so far as practicable n iarge rather than in small quantities ; each institution was required to eep a record of the number of officers, employees, and inmates pres- y each day; also records of the amount of stores and supplies re. *-i\eci and issued; and finally the board of trustees of each institution I, I 350 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 351 i If, ! M 1^ j ll! n was required to make biennial reports to the State Board of Charities concerning the administration of the institution during the two preced- ing years. From time to time new institutions were established, as shown below : 1871— Charitable Eye and I^ar Infirmary, Chicago.^ 1877 — Eastern Hospital for the Insane, Kankakee. 1885 — Soldiers' and Sailors' Home, Quincy. 1887 — Industrial Home for the Blind, Chicago. 1889 — Asylum for Insane Criminals, Chester. 1893 — Home for Juvenile Female Offenders, Geneva.^ 1895 — Western Hospital for the Insane, Watertown. General Hospital for the Insane, South Bartonville. Soldiers' Widows' Home, Wilmington. 1901 — St. Charles School for Boys, St. Charles. The Act of 1875 was the organic law for the government of all the charitable institutions until 1910, although it was amended in unimportant particulars in 1887, 1905 and 1907. The State Board of Charities commended the law as one of the best on the statute books; but it complained that its own powers were insufticient, its functions including merely the power to investigate and recommend. In its report for the year 1900 (p. 42) the Board thus described the situation: "These fifteen charitable institutions have forty-nine trustees and there are five members of the board of commissioners of public charities, making in all fifty-four persons who are charged with the duty of seeing that these institutions are properly managed under the law. In addition they have fifteen local treasurers. AH of the institutions are under the supervision of this board. Our duties, how- ever, are merely advisory, we having no real executive or controlling power. Under the law we are required to visit each of them at least twice a year to see that the moneys appropriated for their support are economically and judiciously expended, to see whether their purposes are accomplished and whether the laws in relation to them are complied with. It also requires us to inquire and examine into their methods of government and management, the conduct of their trustees, officers and employees, the condition of the property and into all matters pertaining to their usefulness and management. In addition to this the law re- quires us to approve their accounts. Notwithstanding all these require- ments this board as constituted has no such executive power to enforce any of its recommendations as should be lodged in a central governing body." As stated in the above quotation each institution had its own treasurer and each purchased its own supplies, the result being a wide variation of prices and sometimes of quality as between the different institutions. ' ^ , . The trustees being unpaid gave only a small portion of their time to the performance of their duties, which tended to become merely 2. Founded as a private Institution in 1858; aided by State appropriations be- ginning in 1867, and organized as a State institution in 1871. 3. Name clianged to tlie State Training School for Girls, in 1901. perfunctory. Attendance upon the meetings (ordinarily there was one meeting a quarter) was irregular; and instances were not wanting in which the control over a particular institution was in fact exercised for a considerable period of time by a single trustee. The natural result of such a system was want of uniformity of policy, loss of efficiency and unnecessary financial waste. As time passed the dissatis- faction with the system increased. The State Board of Charities, the State Conference of Charities and Corrections and other interested organizations inaugurated a campaign for a reorganization of the exist- ing system. This movement was supported by the press and by public sentiment generally and a radical reorganization was advocated by sev- eral legislative committees of investigation. The State Civil Service law of 1905 was enacted to eliminate political influences in the management of these institutions, and at the same time centralized the selection of subordinate employees, by pro- viding for their appointment on the basis of competitive examinations under the State Civil Service Commission. Finally by an Act approved June 15, 1909, the former system of administration for these institu- tions was abolished, and the present centralized system was established. 2. Present Organisation. With a view to standardizing the administration of the charitable institutions, increasing the efificiency of their management and securing greater economy of their expenditures, the Act of 1909 abolished the separate boards of trustees and managers and created a single central authority called the Board of Administration, in whose hands were con- centrated the management and control of all the charitable institutions, though not the penal and reformatory institutions. The latter were left untouched by the act of 1909 and are still under the management of separate boards. The treasurers of the several institutions were like- wise abolished and the funds of each were required to be transferred to the State Treasurer, who was declared to be henceforth the custodian of the funds of all institutions subject to the control of the Board of Administration, with the exception of the monthly salary and contingent funds which were to be left in the hands of the superintendent or other managing officers. The act directed that all moneys collected by the institutional heads from the sale of products or from other sources should be transmitted to the State Treasurer each month, together with a detailed statement to the fiscal supervisor. In addition the Act of 1909 abolished the State Board of Charities and created in its place a Charities Commission to be described here- after. It also conferred a legal status on the State Conference of Charities and Corrections by permitting various bodies to pay the ex- penses of delegates to attend its sessions. The Board of Administration, created by the Act of 1909, is composed of five members appointed by the Governor, with the consent or the Senate, and removable by him for incompetency, neglect of duty or malfeasance in office. Not more than three members of the board "lay belong to the same political party ; one member must be qualified ^y experience to advise the board regarding the care and treatment of li \ 352 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 353 the insane, the feeble minded and epileptics ; one member must be designated by the Governor as president of the board ; the other three members must be reputable citizens. The board is required to elect one of its members as fiscal supervisor and one as secretary ; and it is empowered to employ such other officers, agents and employes as it may deem necessary for the efficient conduct of its business. The term of the members of the Board of Administration is fixed at six years and the salary of each member at $6,000 per year plus an allowance for the necessary travelling expenses incurred while in the discharge of their duties. Each member is required to devote his entire time to the duties of his office. The principal powers and duties of the Board of Administration may be grouped in the following divisions : 1. To exercise executive and administrative supervision over all State charitable institutions, succeeding to all the property, rights, powers and duties of the former boards of trustees, managers or commissioners, and with power to accept and hold grants, gifts and bequests; To appoint and remove the superintendents or managing officers of the State charitable institutions, and (subject to the civil service laws) all other employees of the several institutions as well as its own employ- ees, and with the approval of the civil service commission to determine the salaries of all institutional employees (except the superintendent and managing officers), which shall be as nearly uniform as practicable for like services; To regulate the admission of inmates into the State hospitals, and to cause the removal to the State hospitals of all insane persons confined in the county almshouses, and of feeble minded women and children from such houses to the Lincoln school and colony; To cause one of its members to visit each institution under its con- trol at least once each quarter, and in addition as often as may be deemed necessary, and to make an inspection of every part thereof, in- cluding an examination of the records, stores, and methods of admin- istration ; To make contracts for the purchase of material and supplies for all institutions subject to its control. 2. To inspect and investigate county jails, city prisons, houses of correction, workhouses, and all places in which persons convicted or suspected of crime are confined, to ascertain their sanitary condition and how the insane are treated ; no county, city or village may erect, add to or remodel a jail, almshouse (or similar institution) without submitting plans and specifications to the board for criticism and suggestions. 3. To exercise supervision over private charities, by inspecting, on complaint of at least two reputable citizens, any charitable association which appeals to the public for aid or is supported by trust funds; by licensing and inspecting all institutions or houses in which persons are detained for care or treatment for mental or nervous diseases ; by licens- ing (and revoking licenses), and supervising home finding associations and orphanages, and examining and reporting to the Secretary of State upon the merits of all associations for the care of dependent or delinquent children which seek incorporation ; by the visitation of children who have been placed in family homes; and by the visitation and instruction of the adult blind, 4. The board is to report to the Governor each year its acts, proceedings and conclusions, which report must contain a complete financial statement of the several institutions, and state whether the moneys appropriated tor their aid have been economically and judiciously expended, whether tre laws have been complied with, and such other information and recom- mendations as it may deem proper. From this summary it will be seen that the powers of the Board of Administration are extensive and varied. They include the powers of visitation, inspection and investigation over both State and local institutions and over those which are private as well as those which are public; in some cases it includes the power of licensing and of revokmg licenses for certain reasons. Over the twenty-two State institutions under its jurisdiction its power of control is practically absolute. The Fiscal Supervisor is elected by the board from among its members. He is charged, under the supervision of the board, with examining into the condition of all property belonging to the charit- able institutions, with inquiring into the methods of bookkeeping, store- keeping and all financial and business operations generally of the sev- eral institutions, and with receiving, examining and presenting with this opinion to the board all plans and specifications for the construc- tion of new buildings. He is empowered to require of the managing officers of the institutions the presentation of estimates of their needs, which estimates he is required to tabulate and present to the board with his recommendation. It is then the duty of the board, with the approval of the Governor, to present the needs of the institutions to the Legislature. At least once a year the fiscal supervisor is required to call the managing officers of the several institutions to a joint meeting with a committee of the board for the purpose of classifying the supplies and estimating the requirements of each institution so as to provide for their most practical and economical purchase. This body is know^n as the Board of Joint Estimate whose duty it is to provide for the purchase of supplies in large quantities on contracts for periods not exceeding fifteen months. The law declares that the purchase of all supplies shall be on the basis of competitive bidding after an advertisement of proposals in one or more newspapers in each of the seven largest cities of the State. The managing officer of each institution is required to present to the fiscal supervisor a detailed monthly estimate of needed supplies, materials, salaries, etc., which estimates may be altered by the fiscal supervisor for reasons which he is required to give in writing. Upon the filing by him of a copy of the estimates with the State auditor. It IS made the duty of the latter official to draw warrents on the State Treasurer for the amounts. The salary and contingent funds for each institution are placed in the hands of the managing officer. An Act of 1911 provides for a supervising engineer to be appointed by the Board of Administration, to advise the board and the General Assembly in matters relating to the construction, repair and economical management of the State institutions, and to prepare plans and speci- hcations. ^ r t- ^ An Act of 1913 creates the office of State Deportation Agent and ^" assistant, to be appointed by the Board of Administration, to arrange for the deportation of alien inmates in the State hospitals and ^tlier charitable institutions. ' \ 354 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 355 I The .staff of the Board of Administration in October, 1913, and salaries and appropriations in 1913 were as follows: Per Year. Five members of Board of Administration at $6,000 $30,000 Supervising engineer 4.0()0 State Agent, Home Visitation 2,000 Deportation Agent 3,600 Assistant Deportation Agent 2,400 Total statutory positions $42,000 Chief clerk '. .$2,500 Statistician 2,100 Bookkeeper 1,800 Storekeeper and assistant bookkeeper 1,800 Two reimbursing clerks at $1,500 3,000 Two male clerks at $1,800 3,600 Two male clerks and stenographers at $1,200 2,400 One female stenographer 1,200 Two female stenographers at $1,000 2,000 Filing clerk 1,200 Messenger 900 Two assistant Home visitors at $1,200 2,400 One assistant Home visitor 1,000 One stenographer 1,000 One superintendent adult blind 1,400 Seven instructors adult blind 3,500 31,800 Total salaries (36 positions) $73,800 Annual appropriations for expenses — Office and traveling expenses $14,000 Office and traveling expenses Home Visitors 5,000 Clerk hire and tabulating 1,750 Total administrative expenses 20,750 Total salaries and expenses $94,550 The Charities Commission. This takes the place of the old board of charities, and is com- posed of five persons, not more than three of whom may belong to the same political party. They are appointed by the Governor, with the consent of the Senate, for a term of five years; and the law contains no provision in regard to the right of the Governor to remove them for cause or otherwise. They receive no compensation other than an allowance for necessary travelling expenses incurred in the perform- ance of their duties. The commission is authorized to employ an executive secretary at a salary of $3,600 per year, and such other officers, agents and employees as it may deem necessary. The pov. ers of the commission are merely visitorial, investigational and recom- mendatory in character ; but they extend to both State and local, public and private institutions. They include the investigation of all State charitable institutions, especially the State hospitals, and certain local institutions, such as county jails and alms houses, with particular reference to their condition and management ; and the commission may at its discretion inquire into the equipment, management and policies of all other institutions subject to the supervision and inspection of the Board of Administration, such as orphanages, lying-in hospitals, home- finding associations and the like. It also has supervision over the local boards of visitors to charitable institutions, to be described later. Tiie commission is required to collect and publish criminal statistics and to make an annual report to the Governor, which report shall con- tain such suggestions and recommendations as it deems necessary and pertinent. The inspectional duties of the commission are for the m.ost part carried out by the executive secretary\ He also edits the Institutional Quarterly, a publication dealing with the conditions and progress of the charitable institutions, conducts investigations of accidents, pre- pares reports, arranges the program of the annual meeting of the State Conference of Charities and Corrections, and, in general, watches over the execution of the laws' relating to the charitable institutions. The staff of the charities commission and annual salaries and appropriations in 1913 -were as follows: Five members, no salary but expenses paid : Per Year. Executive secretary $ 3,600 Assistant secretary and stenographer 1,200 Stenographer 900 Inspector of institutions 1,200 Messenger and janitor 800 Total salaries $ 7,700 Office and traveling expenses $5,000 Expenses of auxiliary visitors 1,500 Expenses conference of charity 750 Purchase of books for library 500 7,750 Total salaries and appropriations $15,450 Boards of Visitors. The Act of 1909 further provides for a Board of Visitors for each of the several institutions under the control of the Board of Administration. Each board of visitors consists of three members appointed by the Governor, with the consent of the Senate, for a term ot six years. They receive no compensation for their services, but the law authorizes an allowance for the payment of their expenses. It is made their duty to visit and inspect the institution for which they are appointed at least once each quarter in the case of institutions having the whole State for a district, and at least once a month in the case of institutions whose districts are fractional parts of the State. They are required to make a written report to the charities commission within ten days after such inspection, which report shall state in detail the condition of the institution and of its inmates, and shall include such other matters pertaining to the management and affairs thereof as It may deem proper. It is further made the duty of each board to n^a^e an annual report to the charities commission in regard to the results of its visits and inspections. So far, this provision of the law has remained practically a dead ^tter, since only one or two such boards have in fact been appointed Since the enactment of the law. i " ? » i ^h \ II I \ 356 i:k;ic:ii:ncy and economy committee. Appropriations. The appropriations made in 1913 for the administration and sup- port of State charities for two years, including salaries paid out of the general salary appropriations, are shown below : Board of Administration : Salaries $147,600.00 Expenses 41,500.00 $ 189,100.00 Charities Commission : $ 30,900.00 Salaries $ 15,400.00 Expenses 15,500.00 Charitable Institutions : Ordinary operating expenses $7,123,337.42 Ordinary repairs and improvements ' 716,900.00 Ordinary care of grounds 64,400.00 Total ordinary expenses $7,904,637.42 Special appropriations 3,441,814.04 $11,346,451.46 Special Appropriations: Cherry mine sufferers $43,025.18 Secretary' Cherry mine relief committee 600.00 Relief of William Baker 10,000.00 Aid of B. C. B. Jorgcnsen 6,540.00 Aid of Henry Pryor 2,000.00 $ 62,165.18 Grand total $11,628,616.64 ESTIMATES FOR ORDINARY EXPENSES AND SPECIAL APPROPRIATIONS FOR STATE CHARITABLE INSTITUTIONS, 1913-1915. Estimates for Ordinary Institutions. Expenses. Elgin State Hospital $ 606,771.32 Kankakee State Hospital 1,090,659.00 Kankakee Psychopathic Institute 34,600.00 Jacksonville State Hospital 580,586.10 Anna State Hospital 599,354.00 Watertown State Hospital 477,896.20 Peoria State Hospital 890,101.30 Chester State Hospital 96,324.00 Chicago State Hospital 1,081,240.00 Lincoln State School and Colonv 506,722 00 The Illinois School for the Deaf 271,007.00 Illinois School for the Blind 144,726.80 Illinois Industrial Home for Blind 64,488.00 Illinois Soldiers* and Sailors Home 482,180.40 Soldiers' Widows' Home of Illinois 97,165.00 Illinois Soldiers' Orphans' Home. . 170,192.30 Illinois Charitable Eye and Ear In- firmary 110,004.00 State Training School for Girls 225,860.00 St. Charles School for Boys 374,760.00 Alton State Hospital State Colony for Epileptics The The The The The The Special Appro- priations. $ 151,500.00 289,898.90 * 2 i, '190.66 200,674.27 217,300.00 165,700.00 500.00 830,966.21 102,000.00 2.000.00 12,700.00 135,750.00 15,780.00 1,000.00 22,300.00 65,935.47 206,500.00 500,119.19 500,000.00 Totals. $ 758,271.32 *tl,38O,557.90 34,600.00 601,776.10 ♦800,028.27 ♦695,196.20 1,055,801.30 96,824.00 ♦1,912,20621 608,722.00 273,007.00 157,426.80 200,238.00 487,960.40 98,165.00 192,492.30 110,004.00 291,79547 581.2()0.00 ♦500,119.19 500,000.00 Totals $7,904,637.42 $3,441,814.04 $11,3^^6,451.46 ♦Includes re-appropriations as follows : ^ Kankakee State Hospital $ 23,348.90 Anna State Hospital 145,2742/ Watertown State Hospital 75,000.00 Chicago State Hospital 76,666.21 Alton State Hospital 295,119.19 fKankakee (emergency) 15,0')0.00 CHARITABLE AND CORRECTIONAL INSTITUTIONS. C. PENAL AND REFORMATORY INSTITUTIONS. 357 1. Separate Boards. The first State Penitentiary was authorized in 1827, and was established at Alton. The site and buildings were sold by the State when the new penitentiary at Joliet was provided. The Illinois State Penitentiary at Joliet was authorized in 1857. The Southern Illinois Penitentiary at Chester was created by Act of 1877. The General Assembly in 1867 provided for a State Reform School, which was located at Pontiac, and this institution was reorganized in 1891, and its name changed to the Illinois State Reformatory. The bill to establish the Board of Administration, as originally drafted and reported, included the two penitentiaries and the reform- atory among the institutions placed under its control ; but they were stricken out during the discussion on the bill. As finally passed, the bill did not apply to these three institutions; the system under which they are managed and controlled remained as before. Instead of being subject to the administration of a common board, as are the charitable institutions, each remains under the control of a separate board appointed by the Governor, with the consent of the Senate. In the case of the penitentiaries, there is a board of commissioners for each institution, composed of three members appointed for a term of six years; in the case of the reformatory, there is a board of man- agers composed of five members appointed for a term of ten years, not more than three of whom shall belong to the same political party. The Governor is empowered to remove the penitentiary commissioners at his discretion ; he m-Jy remove the members of the board of managers of the reformatory for misconduct, incompetency or neglect of duty and after opportunity shall have been given for a hearing upon written charges. The penitentiary commissioners are each required to furnish a bond for the sum of $25,000, which may be increased by the Governor and Auditor in certain contingencies; the members of the board of managers of the reformatory are each required to furnish "bonds to the amount of $5,000. The compensation of m.embers of these boards IS fixed by law; for the penitentiary commissioners it is $1,500 per annum; for the members of the reformatory board it is $1,200 per annum. They are not required to give their whole time to their official duties. The powers and duties of the three boards are in general the same. They have full control, management and supervision of their respective mstitutions. They may appoint the chief officers thereof, such as wardens, superintendents, chaplains, physicians, etc., and may remove them; m the case of the penitentiary, at their discretion; in the case of the reformatory, only after an opportunity has been given the caused to be heard upon written charges. They mav make and enforce scipimary regulations, examine accounts and expenditures, and exer- se general supervision over the financial and business affairs of the institution. to fl'^^r ^'^^^^ ^^ managers of the reformatory are required to certify tne Lrovernor, with their approval or disapproval, the accounts of 358 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 35*9 1 \ the institution; to provide a thorough system of training for every inmate in the "common branches of an English education'* and in such trades and handicrafts as will enable him, upon his release, to earn his support ; and to this end they are required to establish schools in the reformatory; they are empowered to transfer incorrigible inmates to the penitentiary"* ; to establish rules and regulations for the release of prisoners on parole ; and it is made their duty to adopt such methods as shall prevent prisoners from returning to criminal habits. Finally, they are required to report biennially to the Legislature, through the Governor, concerning the condition of the reformatory, which report shall contain such recommendations as the board may deem fit, together with a detailed statement of all moneys expended. The penitentiary commissioners are required to meet at the peni- tentiary at least once a month, to keep minutes of their meetings and proceedings, make regulations concerning the quality and quantity of food for prisoners, and the number of hours of labor required of them per day, and to enter into contracts for the purchase of provisions, clothing, medicine, forage, fuel, and other supplies for any period not exceeding one year. They are required to make an annual inventory and appraisement of all property of the institution, and to report to the Governor biennially concerning the condition of their respective institutions, particularly with respect to all moneys received and ex- pended, and of all contracts entered into. Unlike the board of man- agers of the reformatory, they do not have the power to release prisoners on parole, that power being conferred upon the Board of Pardons. It will be observed that while the administrative organizations of the two penitentiaries are identical, the laws which apply to one apply- ing at the same time to the other, there are some differences between their organization and that of the reformatory. These differences relate principally to the organization, size, name, term and compensa- tion of the two classes of boards. The reformatory board is larger in size, the salaries of its members are smaller, and it is bipartisan in organization ; its members have terms almost twice as long as those of the penitentiary commissioners, and they may be removed by the Gov- ernor only for cause and after a hearing upon written charges, whereas he may remove the penitentiary commissioners at his discretion and without a hearing; the bond required of the penitentiary commissioners is five times as large as that required of members of the reformatory board ; the wardens of the penitentiary may be removed by the com- missioners at their discretion, whereas the superintendent of the re- formatory can only be removed for cause and after a hearing; the Governor is required to visit the penitentiaries twice a year and examine into their condition, but no such duty is imposed upon hirn in respect to the reformatory; and, finally, the board of managers of tne reformatory is required to report to the Legislature, whereas the penitentiary commissioners report to the Governor. ■ — -— — — — ■■ — f flP 4. Hold unconstitntionnl In the case of People v. iMallary, 195 111. •'''^2;.?"rinrv Kroiind thnt the transferring of Inmates from the reformatory to the ]?**""' 'n ai» Involves the exercise of Judicial power, which the Legislature cannot confer ui" administrative body. In general, the law defines the duties of the penitentiary commis- sioners with much more detail than those of the board of managers of llie reformatory. Whether, in view of the very similar character of the reformatory and the penitentiaries, the more important of these differences in tlie organization by which they are controlled and man- aged are justified, is a question which is worthy of consideration. 2. Board of Prison Industries. In addition to the above mentioned powers and duties, the members of the three boards of control collectively constitute the Board of Prison Industries of Illinois, although they receive no extra compensa- tion on account of this additional duty. This board, created by an Act approved May 11, 1903 (amended by an Act of May 18, 1905, and by an Act of June 16, 1909) was charged with putting into effect the laws relating to prison industries. It was made their duty to establish a system of prison industry in each institution, mainly for the manufac- ture of supplies for the State and its institutions; to attend to the disposition and distribution of the products of convict labor; to see that no such products should be sold in the open market, except where the demands of the State, its institutions and school and road districts for such products shall not be sufficient to furnish employment to all the prisoners. In the latter case the Board of Prison Industries may em- ploy not more than 40 per cent of the convicts in the manufacture of products for sale in the open market, except that under the direction of the Governor the board may employ not more than 40 per cent of said prisoners for the improvement of the channels of the Okaw, Cache, Little Wabash, Big Muddy, Saline and Sangamon rivers. This board is also required to furnish crushed rock and other manufactured road material produced by convicts to the State Highway Commission. The aggregate value of products manufactured during the year 1912 was $577,943, of which $290,601 represented the output of the penitentiary at Joliet, $216,601 that of the penitentiary at Chester, and $70,437 that of the reformatory at Pontiac. In January, 1905, the board established a central ofBce in Springfield and appointed a sales manager to takfl charge of it. 3. Board of Classification. The president of the board of prison industries, the president of the State Board of Public Charities (Board of Administration) and the Auditor of Public Accounts constitute a board of classification which IS authorized to fix and determine the schedule of prices of all labor performed and of all articles manufactured and furnished to the State or the institutions thereof. 4. Penitentiary Commission. In addition to the three boards for the management of the existing correctional institutions, there was created, by Act of 1907, another commission known as the penitentiary commission. This commission consists of three members, appointed by the Governor, no definite term ^ing named. This commission is authorized to acquire land for a t , 360 EFFICIENCY AND ECONOMY COMMITTEE. I ( new penitentiary and hospital for the insane criminals, to prepare plans and specifications for all necessary buildings, and to control the con- struction of said buildings. 5. State Board of Pardons. Another State board whose functions relate to the inmates of cor- rectional institutions is the State Board of Pardons, established in 1897. This board consists of three members, appointed by the Governor, by and with the advice and consent of the Senate, for terms of three years, one member retiring each year. Not more than two members may belong to the same political party. The Governor may remove any member for misconduct, incompetency or neglect of duty. The State Board of Pardons gives hearings on applications for pardons, reprieves and commutations addressed to the Governor, and makes a report upon each case to the Governor. The reports and recommendations of the board are advisory only, to aid the Governor in exercising his constitutional power of pardon. Regular meetings of the board are required by law to be held on the second Tuesday of January, April, July and October of each year. Special meetings may be called by the Governor or the chairman of the board. In practice, monthly meetings are held at Joliet and Menard. By Act of 1899, the Board of Pardons was given power to establish rules and regulations under which prisoners in the penitentiaries might be allowed on parole outside the penitentiary buildings, and also to grant parole leave to such prisoners. The board of managers of the State reformatory has similar powers in regard to prisoners in that institution. Thus the work of the Board of Pardons embraces two separate and distinct functions : that of examining applications for executive clemency, and that of passing upon cases of prisoners who desire to be released on parole or to have their sentences definitely fixed. The parole work occupies the attention of the board about two weeks of every month. The original act creating the Board of Pardons fixed their salaries at $2,000 per year and an allowance of 5 cents per mile to cover their traveling expenses. The Act of 1899 relating to parole provided that the members should receive $1,500 for each year for services performed in pursuance thereof, making their total salary $3,500 per year, plus traveling expenses. A clerk is appointed by the board, at an annual salary of $2,000, whose duty it is to receive, file and safely keep all papers and docu- ments and a record of the proceedings and recommendations of the board. The board also employs a stenographer at a salary of $1,200 per annum. The total expenses for the two years 1910-12 were $31,923.27. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 361 The following table shows the number of parole cases acted upon by the Board of Pardons during the year 1913 at the Joliet and Chester penitentiaries : PAROLE cases: STATE BOARD OF PARDONS, 1913. Month. Joliet. Cases on docket. Ordered paroled. Sentences fixed or otherwise handled. Totals. January .. February March . . . April .... May June July August . . September October . , November December 76 65 59 67 65 44 67 70 83 74 84 7S Chester. Cases on docket. 25 25 36 23 29 22 26 31 41 41 43 31 Totals 832 51 40 23 44 36 22 41 39 42 23 41 47 Ordered paroled. Sentences fixed or otherwise handled. 76 65 59 67 65 44 67 70 83 74 84 7S Totals. 21 128 72 27 74 82 21 64 99 63 43 50 373 459 21 41 48 27 33 35 21 17 66 34 23 23 832 ^7 24 41 47 47 33 29 20 27 21 128 72 27 74 82 21 64 99 63 43 50 744 389 355 744 The followmg table shows the number of final discharges under the parole law ordered by the board of pardons during the year 1913 at the two penitentiaries and the reformatory: FINAL DISCHARGES UNDER THE PAROLE LAW, 1913. Months Jamiary . , . , February March , April ......*! May June July ;;;; August September .. . October November . . '. December Totals. .. ^l^ following table is a summary of all cases handled by the me board of pardons under the parole law (not including pardon ca^es) for the year 1913; ^ ;. ! I 362 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 363 m ' •■ 1 I y ALL CASES : STATE BOARD OF PARDONS, 1913. Joliet. Chester. Pontiac. Totals. Paroled 373 459 223 300 389 355 231 225 • • • • • • 242 • • • 762 Sentences fixed or other- wise handled 814 Final discharges 696 Specials, estimated 525 Total number of cases handled, 2,797. D. COMPARISON OF THE CHARITABLE AND PENAL SYSTEMS OF ADMINIS- TRATION. Although the two classes of institutions (charitable and penal)* are in many respects similar, and in any strictly scientific or logical scheme of administrative organization would be subject to the same system of management and control, they have in fact very different organizations based upon opposite principles of government. The management and control of the charitable institutions, and these, as has been said, include some that are in a sense not strictly charitable, but in a sense correctional, reformatory and educational, are concentrated in a single central body which gives all its time to the service with which it is charged; while the management and control of the penal and reformatory institutions proper are divided between different boards, one for each institution, the members of which are paid small salaries and are not required to devote their entire time to the discharge of their official duties. Furthermore, while the law requires that one member of the Board of Administration of the char- itable institutions shall be a trained specialist in the care and treatment of those committed to the institutions under its management, there is no such requirement in respect to the boards of control of the penal and reformatory institutions, and in fact these boards are generally composed of persons who have no special qualifications, either from experience or training, for penological administration. For the charitable institutions there is a single central treasurer (the State Treasurer), whereas each of the penal and reformatory institutions has its own local treasurer (the warden or superintendent). In the fiscal supervisor the charitable institutions have a financial and business manager, and provision is made for estimating the aggregate amount of the necessary supplies for all the institutions, and these are required to be purchased, as far as practicable, in large quantities upon the basis of competitive bids. They are then allotted to the various institutions on the basis of monthly estimates. In the case of the penal and reformatory institutions, there is no common business or financial agent, no joint purchase of supplies — in fact, the law scarcely deals with the subject of financial management, the purchase of supplies and the like, except to declare that the wardens of the penitentiaries shall attend to the fiscal concerns under the direction of the commissioners, and shall act under their direction in making contracts for the purchase of supplies. The law relating to the reformatory deals still less with these matters It is, therefore, left to each institution to adopt such busniess and financial methods as it may see fit. Consequently there IS no uniformity of accounting, of keeping institution records or of purchasing supplies. For the charitable institutions an elaborate system of visitation inspection and investigation has been provided, with a view to insuring efficient and economical management and the keeping of the institutions up a high standard of efficiency. This inspectional machinery is triple in character. ^ 1. The Board of Administration itself is required by the law to visit and inspect the institutions under its control, it being made the duty of one member to visit each institution at least four times a year and as many other times as the board may deem necessary. 2. \\ ith a view to securing the benefit of criticism and suggestion by those who are not active administrative officers-the need of which IS important since the Board of Administration is primarily an adm in- TrZZ' ^^^A'^^ ^^^ ^' ^^^P^^^^ t^ emphasize considerationHf economy and business management to the neglect of the proper care and treatment of the inmates of the institutions-the law created the tSn^the'r. V " ^"^/^^^^^^ it ^^Pecially with the duty ofLl- TZhtlvntfh^'u^^ ^^ ^" '^' institutions under esulN of tc^ 'J ^ .^^'^' ^^^ °^ reporting to the Governor the tTons as t ^,vr^''^^''''"'' ^''^ '^^> recommendations and sugges- tions as It might deem necessary and pertinent. institttio^'"bv^; ^^nV'fr '^ "^f^- ^^' '^^ inspection of each charitable ^e ca P nf c .^ } ^^'^ ""^ ^''^^^''' ^t ^^^^t ^^^^ times a year in a e of thnl T'"^'^' institutions, and at least once a month in the case of those whose districts are fractional parts of the State visifnH Ji '" }^-^ ''^'^. ""^ the penal and reformatory institutions no V s tonal and inspection machinery has been provided other than tha^ ^s'it an'/' "^ T"T^" J^^ ^^^^itles Commission has i^o power to visit and inspect either the penitentiaries or the reformatorv ^nd visit'o^aTrn the '"" "t'l ''I ^^^^^ i^^P-tion by loca7bo7rds o' tl . .^ ' • • the case with the charitable institutions Thus where^l IdtXf tL'Tt^Kt and policies of the board wS manage andinve StLn nf r^ institutions are subject to the inspection of the pen t?n fa^^^^ T'^^^ separate and independent bodies, those of no' ru^S^burtl^^^^^ '^^^'^ ''' ^"^^'^^^ '^ ^^^ -^P-tion Advantages of the Central Board System, ^^ges^ar^daimed?' '^"^^' ''"''"^ ^""'^ '^'''"^ '^' ^^"^^^"^ ^^van- istraLoJof^l^faH^u^^nTi^t^^ ^^ the organization and admin- the cemr^l boar^ ^-- ^- ^ "''""^^ be secured. Under such a system relating to the condkion nf ' ' "}'^"'f ^^V^^ of statistical inform'ktion Parole.\ccidents deaths etc ^^'^1^/"^^'''^^^' ^^^arges, releases on unifor.it? of r^c^^ran^re^^^^^^^^^^^^^^ t i :; L J r •I 364 EFFICIENCY AND ECONOMY COMMITTEE. DIAGRAM I. CO CD >= o to C3 CO cc 3= io § MO. 9WO// u/oou/ "7 i3 cc o x: CO 9U9sur 9C/PTU^ 9UO^U 2 9upeur 9UV>S 99lfOI/UpJ/ SUV'S UT ^/^/7 9UP fuj S'^^^ CHARITABLE AND CORRECTIONAL INSTITUTIONS. 365 DIAGRAM II. CO I car CO era i/-^ /oayog ^9Uat^ CO 55: tyoou/y >- CO CD ex 9///AUOtjf}pp 9^//AUOS>f:>Pp •9f/fAUO^JOQ V3 9//fAU0S)f0op bl. fi 355 EFFICIENCY AND ECONOMY COMMITTEE. and prices, uniformity of standards of diet-quality and quantity of food and other supplies-may be secured as between the various institutions. Justice requires that there should be equality of treatment as between the different institutions, which it is difficult to secure where each institution is treated as a separate unit and is under the management and control of a separate board. There is always a possibility that some of them will ge more than they really need, while others will get less. The central board system also affords the means of eliminatmg rivalry among local boards for appropriations. In some states where the separate board system pre- vails there is a tendency to regard the State mstitutions as local, and a strong local pressure is brought to bear upon the Legislature for large appropriations, because the larger they are the more money will be avail- able for expenditures in the community interested. Instances are alleged in which local boards with stronger political influences have been able to obtain from the Legislature larger appropriations than the actual needs of the institution required, while others suffered from inadequate appropria- tions. ISee letter from C. C. Aspinwall, Secretary State Board of Control of the State of Washington in the special report of the Illinois State Board of Charities to Governor Deneen, 1908, p. 57.] 2 The central board system conduces to economy through the elim- ination of duplicate local institutional officials, such as commissioners, treasurers, bookkeepers, etc. ; it makes possible a more rigorous super- vision of financial expenditures and through the centralization of the pur- chase of supplies for all the institutions, it is possible to purchase in larger quantities and at lower rates. These supplies may then be distributed among the institutions from time to time on the basis of their actual needs. It is the experience in other states where the separate board s^'stem pre- vails, and it was true in this State under the former system of admmistcr- ing the charitable institutions, that there is a wide variation as between the different institutions in respect to the prices paid for supplies and a varia- tion in the quality as well. Sometimes the supplies for each institution arc purchased from 'local dealers (in obedience to the pressure of local de- mand) at retail prices as they are needed, sometimes without weighing, measuring or testing. A committee of the Illinois Legislature in 1908 criticised the boards of two of the State institutions for purchasing most of their supplies from local dealers in small (juantities instead of by contract at wholesale prices. The secretary of the New York Commission in Lunacy recently testified that the prices paid for coffee by the different institutions, before tlic system of joint purchase was introduced, ranged from 16 cents a pouna for coffee that was two-thirds chicor>', to 22 cents a pound, whereas now good coffee is purchased for all the institutions at 10 cents a pound. When the hospitals bought carbon paper, pens, tooth brushes, typewriter ribbons etc., separately, he says, the prices paid varied from $6.00 to $9.UU per dozen in the case of ribbons, whereas they are now purchased m large lois and furnished to the institutions at $4.25 per dozen. Pens which formerly cost $1.50 per box now cost $1.00, and a better quality oi jnvphesis nov^ obtained. (See report Illinois State Board of Chanties, 1908, pp.207-Z08J In Illinois the same conditions prevailed in respect to the purchase ot sup- plies for the charitable institutions when each was governed by a separate board. It was found in 1908 that the average prices paid for coal at the seventeen charitable institutions varied from $1.24 a ton at the Soutnern Hospital for the Insane at Anna to $4.20 a ton at the Eye and nar Infirmary at Chicago. (See Diagram I.) A committee of the Legislature in 1908 reported that at several of the institutions there were no scales lo the weighing of coal or other methods for determining whether the J^^yj;, tion was receiving the amount for which it paid. Where it was weignea, and checked, as at Kankakee, there was found a marked difference i>c tween the institution weights and those of the contractors. Likewisc^tn prices paid for flour ranged from $1.95 per 100 pounds at Anna to $^./^ ' CHARITABLE AND CORRECTIONAL INSTITUTIONS. 367 'cL^^T,t29% ^9^ L^S. }fr^ ^"^"^^^ ''^'^ ^^-' ^' These inequalities have been eliminated since the introduction of the sys em of joint purchase for all the institutions and by means of purchases Z}r^'^^ rr'^'u^^'"'^^'-^'''^^' ^^^ ^^^"^^d- For example, coal is now purchased for all the mstitutions upon contract, the award being given to the lowest bidder after an advertisement of proposals. Samplls are re- quired o be submitted by the contractor and these are analyzed at the Sta e University, and the price paid is determined on the basis of these analyses, whereas formerly the institutions paid for coal regardless of dirt and cleanings from the mines. If the coal delivered shols a heat-pro fnd'?i'^^^'''^ in excess of the standard, the contractor is paid accordinghr and z;,c^ versa. (Institution Quarterly, March, 1913, p. 156 ) So in regfrd to the purchase of other supplies. The board specifies a uniform qulnty for articles used by all the institutions and the quality specified is quite different from that required before 1910. For example, beef mus we"gh not less than 5/5 pounds to the carcas.s, and a uniform weight is rea^irfd ■ "l thV in:tUut^:r ' h' '^"^. ^^^ ^^^^^ ^^ «- ' i^ nTw^urchale'd'Sr n ished The .r^^' T^'''^ • ^""'"^^'^y "^^^y different grades were fur- nished. 1 he same is true in respect to tea, coffee, sugar and potatoes Formerly an inferior grade of butterine was purchased by mLrof the . The abolition of the separate boards of trustees of the chantrihl--* TTTl! To' Stll rT "'n^°^ ^' ^^^^^^^^ '^ ^ Se cenlarlofrrmf^^^^ resoect ti ..l.rjf^ ' uniformity among the various institutions in respect to salaries wages, number of employees, accounting prices of supplies and materials, and, in general, to standardize the se^^ices diets quality of food and supplies, methods of keeping records etc Ar^on^ the penal and reformatory institutions, however, differences Vrespec^toio^^^ of these matters still exist and will continue to exist so long as the insti utions are managed by separate boards. Some of these dffferencesmlv be noted. First, m respect to salaries: The compen at?on of the neni^ s'$'l2'(S)T:''^"^''V.' ^M^ P^^ ^.'^'' *h-t °f ^he reWa oiy manag^^ s l\'m^ n ^''''' J^^ '^^u"^ °^ i^'^ ^^^d^" °f the penitential at JoHet is $j),000 per year that at Chester $4,000 per year and that of tSe suoerin a'sflTrv'of $2%m^ ^t'^'. S^ ^^^^^y warden at Joliet re^eWe^ a salary of $2,200 per year; that of Chester $1,500. The physician at the hfrece'i:e"'$iTo^ TheJ" ^'f ' ''\' '''''' '^^^^ Sout\^S^Teni"emi^^ le receives :t>l,500. Ihere are five parole agents at Joliet while at Che«;ter with about the same number of prisoners, there are only two ' threi^'insXttn^. llT'"' ''^"'' ^^ expenditure, the differences among the inree institutions are in some instances very great. Thus for the fi«:ral y]l\^^^^^^S September 30, 1912, the disbursements for sa aries at the $55 977' lw\''T'^' ^''^ ^^- ^^^^^S^ ^^ 1'088 inmates, amounted to $77'l26 Tl ' T ^^ ^°"f^^"' ^^^h °^1>^ 690 inmates amounted o Chei.; irn^ n"mt>er of employees at the Joliet penitentiary was 116 • a? cloth n. if'.u''^ ?• ^^^'^.^^ \^^' The disbursemems for bedding and $3?4 a" Chester and t2^^'',?v'"l-' "•? ^TTu°^ ••^""'^^ amounted "? were $225 In^ll'^^SeltiveT''' '" °"°"'"^ ^'" *^ '""°"°" 368 EFFICIENCY AND ECONOMY COMMITTEE. With regard to the amount and quality of food consumed, there are striking differences among the institutions. Thus, during the year ending September 30, 1911, the number of pounds of cotfee purchased at Chester was 11,235, whereas at Joliet, with nearly 30 per cent more prisoners, the amount was 6,282. During the year 1912 Chester purchased 20,874 pounds of sugar, Joliet 11,663 pounds; on the other hand, Joliet purchased 8,9()9 bushels of potatoes and Chester but 4,475 ; Joliet consumed 10,079 pounds of rice and Chester 4,414 pounds. The expenditure for meats amounted to $31,346 at Joliet and $25,941 at Pontiac, with about half the number of inmates. At Chester the prisoners were fed on hutter costing 33 cents per pound ; at Joliet on "butter" costing 12 cents per pound (evidently butter- ine), and at Pontiac on "butter" costing 13 cents per pound. Chester used 14,058 pounds of lard and Joliet only 120 pounds, buttenne apparently being used instead. At Chester the price paid for beef ranged from 11 to W/i cents per pound; at Pontiac 11 cents, and at Joliet 9.7 cents. It is evident, therefore, that there is no standard of subsistence, no uniformity in respect to rations in the several institutions. In one, meat constitutes a much larger proportion of the ration than in the others; in one, syrup is served the prisoners much more extensively than in others; . in one, a much higher grade of meat is served than in the others; and in some the prisoners are fed on butterine, while in others they are served butter. Whether such varying standards of diet involving, as they do, unequal treatment of the inmates of the several institutions, should be permitted, is a question which deserves consideration. They do not exist in the charitable institutions, and have not existed since these institutions came under the control of the Board of Administration. It naturally fol- lows from these facts that the per capita cost of subsistence in the several institutions varies more or less widely. At Joliet, the per capita total expenditures for the year ending September 30, 1912, amounted to $179.84; at Chester, $201.26, and at Pontiac $255.35. The estimated per capita net cost of maintenance per day is 48 cents at Joliet, 54 cents at Chester (this includes an estimated charge for food supplies from the prison farm), and 70 cents at Pontiac. The lowest of these figures (that for the Joliet peni- tentiary) is considerably higher than the per capita cost in the insane hospitals (with about the same number of inmates) under the Board of Administration, which ranged in 1910-12 from $130.12 at the Jacksonville hospital to $170.32 at the Chicago hospital, and averaged about $140.00. The average per capita cost in the correctional institutions for 1911-12 was $208.00. If the penitentiaries and reformatories were maintained at the same per capita cost as the insane hospitals, there would be a saving of more than $200,000 a year. So far as can be ascertained, there has been a marked saving in the cost of maintaining the seventeen charitable institutions since they were placed under the control of the Board of Administration. On account ot the increased cost of foodstuffs and other supplies during recent years, however, the reduction in the per capita cost of supplies has naturally not been considerable. During the past two years, for example, the price ot beef in some instances has increased 40 per cent, and there has been a marked advance in the price of many other articles. From the following statement, prepared for the Oicicncy and Economy Committee by Ho^- F. D. Whipp, fiscal supervisor, in March, 1914, it appears that there nas been a reduction in the ordinary operating expenses of the institutions during the four vears since the creation of the board of $418,45033. CHARITABLE- AND CORRECTIONAL INSTITUTIONS. 369 Statement No. 1. — showing gross cost of maintaining the INMATES of the ILLINOIS CHARITABLE INSTITUTIONS < FOR THE YEARS 1909, 1910, 1911, 1912 and 1913, based on the ordinary oper- ating PER CAPITA COSTS, SHOWING EXPENDITURES OF THE BOARD OF ADMINISTRATION AND MAKING ALLOWANCES FOR THE CHANGE IN THE BASIS OF APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY. Cost on Gross cost of maintaining inmates based on 1S,70d.98, Current Per Total on tlie average number present during the calendar Capita, Plus 1909 year 1910: Additional Per Capita. Items. 15,705.98, at $194.87 gross per capita, cost 1909 $ 3,060.624.32 15,705.98, at $175.35 gross per capita, cost 1910 $ 2,754,043.47 Expenditures of Board of Administration, 1910.... 58,400.68 Gross cost of maintaining inmates based on 15,860.40, the average number present during the calendar year 1911: 15,860.40, at $194.87 gross per capita, 1909 3,090,716.14 15,860.40, at $172.22 gross per capita, 1911 2,731,401.41 Expenditures of Board of Administration, 1911.... 67,145.70 Increase in bills incurred for repairs, improvements and grounds six months (basis of appropriation changed) 57,242.31 Gross cost of maintaining inmates based on 15,956.50, the average number present during the calendar year 1912 : 15,956.50, at $194.87 gross per capita, 1909 3,109,443.15 *15,956.50, at $181.81 gross per capita, 1912 2,901,129.35 Expenditures Board of Administration, 1912 69,940.77 Increase in bills incurred for repairs, improvements and grounds, 1912 over 1909 185,073.90 Gross cost of maintaining inmates based on 16,801.85, the average number present during the calendar year 1913: 16,801.85, at $194.87 gross per capita, 1909 3,274,176.46 *16,801.85, at $182.82 gross per capita, 1913 3,071,754.48 Expenditures of Board of Administration, 1913 75,714.43 Increase in bills incurred for repairs, improvements and grounds, 1913 over 1909 144,663.24 Net reduction four years 418,450.33 $12,534,960.07 $12,534,960.07 . ^ comparison of prices paid by the Board of Administration for standard articles like flour, sugar, tea, coffee, butter, etc., with those paid by the separate oards before 1910 is difficult because of the advance in prices and because, under ee^ ^^n^^"* system of purchasing supplies a uniform quality is specified and h nenilly a superior quality is purchased. As has been said, many of the institu- ons formerly purchased an inferior grade of butterine, whereas the Board of ^aministration specifies that butterine furnished shall contain at least 20 per cent It ^^\u ^^^^'"^^y butter, with not over 10 per cent moisture and 3 per cent salt, price .^^f" ^^^"^ the following table, prepared by the fiscal supervisor, that the and K ^ ■ ^^ ^^^^ ^^ *^^^ Kankakee hospital for beef, ham, coffee, tea, potatoes • u Dutterine were perceptibly higher than in 1909, and that only on bacon, flour and^sugarjias there been a reduction. *E)unning excluded. !H 370 EFFICIENCY AND ECONOMY COMMITTEE. AVERAGE COST OF SUNDRY FOOD SUPPLIES AT THE KANKAKEE STATE HOSPITAL. Quarter ending Quarter ending Dec. 31, 1909. Dec. 31, 1913. Fresh beef carcass $ 5 qq Fore quarters 9 75 Hind quarters ^ 12.00 Bacon $1 7. 75 16.72 Ham 12.93 15.45 Flour 4.98 3.79 Coffee 13 177^ Tea 20y2 .23^ Sugar 5.03 4.33 Potatoes 43 691^ Butterine n^ .15^ After this comparison of results under the central board and separate board systems in Illinois, we may now return to the general discussion of the merits and demerits of the two systems. 3. Finally, it is claimed that the single board system conduces to greater efficiency in the administration of the institutions, as a result of the centralization of power and responsibility. The doings of a single board may be more easily followed, as public opinion is focused upon its policies, than is possible where there are twenty or more boards. Unlike the separate boards which formerly controlled the charitable institutions and which now control the penal and reformatory institutions, the Board of Administration gives its whole time to the atfairs of the institutions under its jurisdiction; it is permanently in session and, through an exten- sive system of reports required of the institutions (daily in respect to certain matters), it is enabled to keep in close touch with what is happen- ing in them and with the manner in which they are managed by the head officials. It is, therefore, able to compare results of each with those of the others and to enforce upon all the highest standard attained in any one. By reason of its close touch with all the institutions, it is in a poshion to recommend legislation for improving the conditions of all and for meeting their needs upon the basis of equal and uniform treatment. Being always in existence, such a board can develop systematic business methods and will acquire a familiarity with its duties such as local boards which meet only occasionally for the perfunctory performance of their duties and which, therefore, have no permanent organization, can never attain. By relieving the managing heads of the institutions from a mass of business and financial details, which consume their time and for which they are often unfitted, they are left free to devote their time to affairs which relate more immediately to the care and welfare of the inmates. The separate board system in effect requires them to be not only experts in charity administration, penology and the care of the insane, but business and financial managers as well— a very difficult combination and one which is probably not often found. It is the testimony of the Board of Administration that there has been a marked increase in the efficiency of the institutions since the institution of central control in the place of local management. (See its report in 1910, ch. 2.) Governor Deneen declared, in his message of January 8, 1913, that "the general result has been a great increase of efficiency, accom- panied by greater economy and uniformity of service, placing all institu- tions upon a level with the best similar institutions in this country or in Europe." CHARITABLE AND CORRECTIONAL INSTITUTIONS. 371 Criticism of the Central Board System. Some objections have been urged against the system of adminis- tering a large number of institution by a single central board, even though they are similar in character and logically fall within the same category. 1. In the first place, it is sometimes claimed that such a board tends to emphasize the business side of the administration to the neglect of interests of the inmates of the institutions. It is apt to attach greater importance to considerations of economy and to. purely adminisrative effi- ciency than to those affecting the immediate welfare of the persons for fvhose care the institutions have been created. It is a common complaint among specialists and experts in the field of charitable and penological administration that the members of administrative boards take little inter- est in the activities of organizations and movements for the advancement of the penological and philanthropic sciences. They are, therefore, non- progressive and little affected by the progress of enlightened sentiment concerning the best methods of dealing with the difficult problems of charity and penal administration. 2. In the second place, it is sometimes claimed that the single hoard system tends to develop expensive machinery and to become both autocra- tic in its powers and bureaucratic in its methods. 3. In the third place, it is contended by some that each institution, however much it may resemble others in its character and purpose, has its own peculiar problems and needs and its own individuality, and can, therefore, be more wisely managed by a local board than is possible where it is thrown into a class with perhaps a score of other institutions and governed by a central body which has no respect' for local peculiarities and conditions. Conditions in the various institutions, it is said, are often widely different and do not lend themselves to the same treatment. Where there is a large number of institutions widely scattered throughout the state it is difficult for a single board sitting at the center to become familiar with the problems and conditions of them all. 4. Finally, it is contended that the local board system affords a means of enlisting the services of a large number of competent and public- spirited citizens who are not politicians by trade and whose interest in the welfare of the unfortunate classes committed to their care is a sufficient guarantee that they will devote their best efforts to the performance of the responsible duties of their offices. Where the central board system prevails, membership on the board tends to become a political prize and appointments are more apt to be given as rewards for political service than IS the case where appointments to membership on local boards carry a small salary, if any at all. It is, therefore, said to be better to have a separate unpaid or nominally paid board for each institution (with possible provision for joint purchase of supplies), and over them all a central board of charities or similar authority, with the power of visitation. mspection and recommendation. w^ CHARITABLE AND CORRECTIONAL INSTITUTIONS. 373 I \ II. CHARITABLE AND PENAL ADMINISTRATION IN OTHER STATES AND COUNTRIES. A. IN OTHER STATES. I. Central Boards of Control. In the majority of states the charitable and penal institutions are under the management and control of separate boards, one for each mstitution. There is, however, a marked tendency toward the abolition oi local boards and the substitution of a single central board for the control of all the institutions, or for the control of those of each class. This movement began about forty years ago, although it was not until recently that its progress became marked. The indications now are tiiat this movement will continue and that the central board system is destined to become the general method of institutional administra- tion throughout the United States. Kansas (1873) was the first state to vest the management of its several state charitable institutions in the hands of a central board; and recently it has adopted the same system for the management of Its penal institutions. New York, as early as 1877, consolidated the management of the state prisons and the hospitals for the insane crim- mals m a smgle authority— the state superintendent of prisons— in 1889 partial control of the other insane hospitals was entrusted to a com- mission in lunacy, and in 1902 this control was made more complete. In the latter year the office of fiscal supervisor was also created, and given an extensive control over the financial and business affairs of the charitable institutions. Wisconsin, in 1881, created a single central board of control for the management of its charitable and penal insti- tutions. Arizona followed its example in 1895, Iowa in 1898 \A'ash- ington m 1900, Minnesota in 1901, West Virginia in 1909, Ohio and North Dakota in 1911, Rhode Island in 1912, and Nebraska and New Hampshire in 1913. Arkansas and Kentuckv, in 1905, each created a single board for the control of its charitable institutions, and Illinois did likewise in 1909. In 1911, California created a central board with powers of inspection, supervision and a limited control over all the charitable, penal and other institutions of tlie state. In 1913, Vermont passed a law providing for the centralization in a single authoritv of the purchase of supplies for the various institutions of the state. Plans for a more centralized system of administration of charitable and correctional institutions have also been proposed in Massachusetts and New York. The various types of central control may be classified as follows: ^irst, that under which all (or nearly all) the state charitable institu- tions are subject to the full management and control of a single board, while the penal and reformatory institutions are under the irianagement of a separate and distinct board. Second, that under which the man- a^rement of the penal and reformatory institutions, but not the char- itable institutions, is vested in a single central board. Third, that under which only the financial operations (such as the letting of contracts, the purchase of supplies, etc.) of the charitable and penal institutions are managed and controlled by a central authority. Fourth, a mixed system under which certain classes of institutions are subject to the control of a central board, while others are managed by separate boards or which are subject to the control of a single central authority only in respect to certain matters. Fifth, finally, there is the system under which the management and control of all the charitable, penal and reformatory institutions (and in some states even the higher educa- tional institutions, for certain purposes) is vested in a single central board, there being no separate board of managers for any institution. The states falling in the first group, that is, those in which the char- itable institutions (or certain of them) are under the management and control of a single state board, the penal institutions being placed under the control of another central board and under local boards are Ala- bama, Arkansas, Kentucky, Kansas and Virginia. This is also the class to which Illinois belongs. In Alabama the hospitals for the insane are under the management of a single board ; but the other charitable institutions and also the penitentiary are each under the management of separate boards. In Arkansas the schools for the blind, the deaf and the dumb, together with the asylum for the insane, were all placed under the management and control of a single board of trustees in 1905, and in 1911 the Confederate Soldiers' Home was added to the list. The board consists of seven members, each of whom receives compensa- tion at the rate of $5 per day, plus traveling expenses. In Kentucky the three insane asylums and the asylum- for the feeble-minded are under the management of a board entitled the board of control for the charitable institutions (created by an Act of 1908). The board consists of four members, appointed by the governor for a term of four years. Two members must be taken from the majority political party in the state. The salary of each member is $2,500 per year, plus an allowance for their traveling expenses. The board has full and complete management and control" of the several institutions mentioned. In Kansas all the state charitable institutions, including the hos- pitals, schools for the deaf, the blind and the feeble-minded, the orphans' homes, etc., are under the "management, government and control" of a central board created in 1905, and consisting of three members appointed by the governor for a term of four years. Each member receives a salary of $2,500 per year. At present there are seven (7) institutions under the control of the board, and two others )\'in soon be completed. The total number of inmates in the institutions •s a.^out 5,000. The board has also the power of visitation, inspection ^^^ supervision over private asylums, children's aid societies and all iMi 374 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECiIONAL INSTITUTIONS. 375 r m \ 1 J I If: V 1 1 !■ • lilt' ■ i charitable and all semi-charitable institutions receiving state aid. The penal and reformatory institutions were excluded from the control of the board, and were left under the management of separate boards until 1913, when the Legislature placed them under the management of the state board of corrections. At the same time the industrial schools for boys and girls, which had formerly been under the board of control, were placed with the penitentiaries under the state board of corrections. No institution of Kansas at the present time is under the management of a separate board. In Virginia each of the hospitals for the insane is under the man- agement of a separate board ; but the several boards together constitute a central board of control for the appointment of superintendents, the oversight of expenditures and certain other matters for all the hospitals. The states belonging to the second group — those in which the penal institutions are put in a separate class from the charitable insti- tutions and are under the management of a single central board, are California, Kansas, Kentucky, Tennessee and Texas. In each of tliese states there is a board of prison commissioners which is charged with the management of the several state prisons and reformatories. In 1911 the legislature of California created a state board of control, with power to examine the books of the state prisons, reforma- tories, state hospitals and other institutions, commissions, bureaus and offices. It is required to visit at least once each year every public institution maintained wholly or in part by the state, and to ascertain the conditions prevailing therein and its needs ; to visit public buildings in course of constructon and to ascertain whether the provisions of the law and the contracts relating thereto are being complied with; to exercise equal supervision over all the state institutions in respect to their financial and business policies ; to institute court proceedings to conserve the rights and interests of the state ; all contracts entered into by state officers, boards and commissions must be submitted for its approval; reports of all supplies purchased by the state or any institution thereof must be made to it ; no supplies may be purchased in the open market without its approval ; it performs the duties of a court of claims and its approval is necessary before any claim against the state may be paid ; it is charged with investing school funds ; bond sales by cities, counties and other local authorities must be notified to it ; it is empowered to sell or exchange property belonging to the state ; it is required to establish a system of uniform accounting and of keeping records in all institutions and offices; and it performs all duties formerly exercised by the various state boards of examiners. With all its varied powers it is not, however, a board of control in the sense that it is charged with the actual management of the institutions; it is rather an inspectional and supervisory authority. The board consists of three members appointed by the governor and they are required to give all their time to the discharge of their duties. Each member receives a salary of $4,000 per year. In the Third Group belongs Rhode Island, which has a board of control and supply composed of five (,5) persons, appointed for a term of five years (salary $3,000 per year for the chairman and secretary, $2,000 for the other members) w^ith control over purchases and sup- plies. It makes all contracts for the state charitable and penal insti- tutions ; it oversees the construction and equipment of buildings, and is charged with establishing a uniform system* of accounting among the various institutions subject to its control. In 1914 the Governor recom- mended that the entire administrative and financial management of the institutions be placed under the board. In this group might also be placed the state of Vermont, which in 1913 created the office of pur- chasing agent for the various institutions (except for the soldiers' home). In the Fourth Group are New York and Massachusetts, where there is a combination of the local and central board systems. The institutions of New York are divided into three classes : First, the charitable institutions ; second, the hospitals for the insane ; and third, the state prisons. 1. In New York each of the nineteen charitable institutions is in charge of a board of local managers appointed by the governor, and there is a state board of charities with powers of visitation and super- vision over the several charitable institutions (now twenty- four in num- ber) and with power to inspect, supervise and license certain private institutions. The board is composed of twelve members, appointed by the governor, and they receive a salary of ten dollars a day for attend- ance at the meetings, provided that the total allowance for each member shall not exceed five hundred dollars ($500.00) per year. The financial and business affairs of the charitable institutions, including the approval of estimates for' supplies, are in the hands of an officer called the Fiscal Supervisor. He is appointed by the governor for a term of five years and receives a salary of six thousand dollars a year. 2. Each of the state hospitals for the insane (with fourteen in number, 6,000 employees and over 32,000 patients) is under the control of a board of managers appointed by the governor, but there is also a commission in lunacy, which has power to appoint and discharge superintendents subject to the approval of the local boards of managers. The two hospitals for the criminal insane are under the jurisdiction of the superintendent of state prisons. The commission also visits and inspects the insane hopital, formulates policies regarding their manage- ment, and controls their business and financial operations. 3. The state prison^ and the two state hospitals for insane crim- inals, mcluding the state farm for women — eight institutions altogether, with a total population of about 6,000, are under the control of a state supermtendent of prisons, who has power to appoint and remove wardens and has control of the financial and business operations of ne several institutions under his jurisdiction. The reformatories are under separate boards of managers. ^^^^•^^ also a commission of prisons of seven members, with two ^7 ^^^^"^P^ction and advice; a board of parole of three members, new . °"^ are appointed by the governor, and the commission on w prisons, consisting of five members. SUDP '"^^^^^ ^^^^^ ^^ ^ board of classification, consisting of the fiscal pervisor of state charities, the state commission of prisons, the state ( . i i< iJ^ 376 EFFICIENCY AND ECONOMY COMMITTEE. \r I V > I I t superintendent of prisons, and the lunacy commission — in all, twelve members. This New York system has been criticized for its cumbersomeness and expensiveness. The machinery of administration seems needlessly complicated, and those who have studied its workings are of the opinion that it does not work smoothly and expeditiously. A committee of inquiry appointed by Governor Sulzer in 1913 recommended that all of the boards and offices having to do with penal institutions be abolished except the state superintendent of prisons and the commission of prisons, the latter, however, to consist of three members instead of seven and to be given all the powers now exercised by the bodies proposed to be abolished. This committee also urged that the state charitable institutions ought, in some way, to be con- solidated. The Massachusetts system is also mixed and complicated. 1. There is a local board of managers for each institution. 2. There is a state board of insanity having supervisory, visitorial and directorial power over the institutions for the insane. 3. There is a state board of charities with essentially the same powers over the charitable institutions. 4. There is a board of prison commissioners with complete control over the four reformatories and state prisons, but not the state farm, except as to its industries, and general supervision and inspection of jails and houses of correction. The board consists oi five members, two of whom must be women. They are appointed by the governor for for a term of five years. The chairman receives a salary of $4,000 per year in addition to traveling expenses. The other members receive only their necessary expenses. The number of inmates of the state prisons, reformatories and prison hospitals is about 3,000 and the county jails and houses of correction contain about the same number. The Massachusetts Economy and Efficiency Commission in 1914 recommended a radical reorganization of the machinery of control for the charitable, penal and reformatory institutions. It proposed two alternative schemes for the consideration of the legislature and accom- panied its proposals with drafts of bills for carrj^ing out its recom- mendations. The first of the two plans proposed to vest in a single board of five commissioners, paid $1,000 a year each, general super- vision and direction of all the state hospitals, asylums, colonies, sana- toria, industrial schools for delinquent boys and girls, the school for the feeble-minded, the state prisons and reformatories, and the state farm — altogether twenty-nine institutions, with a population of over 20,000 inmates. This commission should be charged with the promo- tion of general policies and plans in regard to the management of the institutions and with the general oversight of their administration. The proposed plan contemplates that the active administration of the institutions shall be vested in a director appointed for an indefinite term by the commission, to whom he is to be held responsible. He is to have authority to appoint executive secretaries (one for each of the three groups of institutions), superintendents and other subordinate CHARITABLE AND CORRECTIONAL INSTITUTIONS. 377 officers, to see that all inmates are properly cared for, to organize a central purchasing agency for all the institutions, to install a uniform system of accounting, etc. Provision is also to be made for the appointment of a business agent, one of whose duties is to purchase suppHes for the institution, and for an unpaid board of three visitors for each institution. The second plan proposed by the Economy and Efficiency Com- mission vests the supervision and administration of the institutions in a board of five commissioners, to be chosen with particular reference to the nature of the several problems involved, the members of the board to give all their time to the discharge of the duties of their offices. The first of the proposed plans is preferred by the Economy and Efficiency Commission as the one which best provides the means for determining the responsibility necessary for the successful administra- tion of the institutions, although it admitted that each plan has certain advantages over the other. Of one thing the commission was con- vmced, namely, that under the present system of divided authority (the total number of trustees and commissioners who are concerned with the administration of the institutions is 136) economy and efficiency in the management of the institutions is impossible and that the remedy lies in the abolition of a large number of the existing separate boards and commissions and the substitution of a central authority having full power and responsibility. The commission found that there appeared to be no standard in the various institutions for determining the number of employees to do the work required, the amount of the salaries paid and the official titles which they bore. In one hospital there was one employee to 3 38 patients ; in another, one to 5.75 patients, while in the asylums the ratio ranged from 1 to 4.20 to 1 to 5.45. Salaries of superintendents ranged trom $2,500 to $5,000 per year among the different institutions, and so with the salaries of subordinate officers and employees. ^ regard to Iinancial methods including the purchase of supplies, the commission lound the same lack of uniformity and want of system; and it ex- fn^n . f .^^^^viction that under the present method it was impossible .nTl ^^^ ^^^''*' ""^ ^^^ institutions from the accounting standpoint so that an accurate record could be presented of the actual expenditures lor any particular purpose. One of the most important advantages to DC aerived from the proposed reorganization, said the Commission, m ght come through the installation of uniform and proper accounting methods, so that the state might have an accurate record of its per- mnr^L'''-''^'^"'^''^' ^ ^^^^^^ knowledge of its maintenance and cost, a rmnr. K^""-^ management of its purchases through a central agent and dep^rtmeit''"^'' handling of finances by the state treasurer's the ciV^^i"^*^ group th^t is to say the group of states in which all and mo ' P^^^i ^"^ reformatory institutions are under the control Ari7^nf ^^""^"^ ■?!. ^ ^'""^^^ ^^"^'^^ ^^^^^ ^^^ to be found the states of South ^.^T^.^T"^'''^^' .^^'"^ Hampshire, North Dakota, Ohio, If to tK ^ ^' Washington, West Virginia, Wisconsin and Wyoming! not i.nH?^ T ^^^ ^^^^^ ^^^^^^ ^^ ^^^^^^ the penal institutions, though "naer the management of the same authority as the charitable !i iiti 378 CHARITABLE AND CORRECTIONAL INSTITUTIONS. 379 EFFICIENCY AND ECONOMY COMMITTEE. li- =) I? ■■< If: \ institutions, yet are under the control of a single board of superin- tendence (California, Kansas, Kentucky, Massachusetts, New York Rhode Island and Tennessee), we have eighteen states at the present time in which the penal institutions (where there are more than one in a single state) are under centralized control. In Arizona all the charitable, penal and reformatory institutions are under the management and control of a board consisting of the governor, the auditor and one citizen appointed by the governor for a term of two years. In Iowa all the state hospitals, prisons, reformatories, soldiers' homes, schools for the deaf, industrial schools for boys and girls, etc. — fifteen altogether, with a total population of about 9,000 inmates- are under the management, government and control of a bi-partisan boaM of three persons appointed by the governor, with the consent of two-thirds of the senate, for a term of six years (salary $3,000 a year). This board has also power to investigate the state university, the normal school and the college of agriculture, and the power to inspect and regulate county and private institutions in which the insane are kept and homes for friendless children. In general, it has the same powers over all the charitable, penal and reformatory institutions that the Illinois Board of Administration has over the charif^ble institutions. Minnesota, since 1901, has had a state board of control consisting of three persons appointed by the governor for a term of six years (salary $3,500 each), charged with the management of all the char- itable, penal and reformatory institutions, including training schools, the industrial school for girls and the tuberculosis sanitarium — sixteen altogether, with a total population of about 6,500 inmates. It also has a certain authority over the educational institutions in respect to the erection of new buildings, the purchase of fuel and the placing of insur- ance. Thejboard has charge of the financial and business affairs of all the charitable and penal institutions, selects superintendents, fixes the salaries of employees, prescribes the system of accounting and investigates local prisons, jails, hospitals and asylums. The members of the board are required to give their whole time to the discharge of their official duties. At the time this central board of control was created the state board of charities was abolished, but the need for some inspectional machinery, independent of the board whose work is to be inspected, led shortly afterwards (1907) to the creation of a state board of visitors, which is little more than the old board of char- ities under a different name. The board is bi-partisan in composition and is composed of six persons appointed by the governor for a term of six years. Its members receive no compensation other than traveling expenses. It is charged with the visitation and investigation of all charitable and correctional institutions. In New Hampshire there is a board of control (created in 1913) consisting of the governor, the secretary of the state board of charities, the purchasing agent, and two other persons appointed by the governor. The purchasing agent is appointed by the governor and receives a salary of $3,000 per annum. He has power to make contracts and to purchase all supplies for the eleemosynary institutions and for the various departments of the. state government. The board of control acts with him in the matter of constructing and repairiftg buildings. In North Dakota there is a board of control of state institutions (created in 1911) with "full power to manage, control and govern" the state hospitals for the insane, the state penitentiary, the asylums for the blind, the deaf and dumb and the feeble-minded, the state reform school and such other charitable and penal institutions as may be created in the future. The board is vested with all powers formerly exercised by the separate board of trustees which were abolished by the Act of 1911. It is required to inspect at least once every six months all institutions subject to its jurisdiction and to visit the hos- pitals for the insane once each month ; to prescribe a uniform system of records and accounts for the several institutions to prepare plans and specifications for new buildings and improvements ; to appoint superintendents, wardens, and other institution officials and to fix their salaries ; to make a biennial report to the legislature and to recommend the enactment of such legislation as in its judgment is necessary or conducive to the improvement of the institutions. The board consists of three members, appointed by the governor for a term of two years, not more than two of whom shall be taken from the same political party. Each member receives an annual salary of $3,000. In Ohio, all the charitable, penal and reformatory institutions, nineteen (19) in number, with an aggregate number of inmates of over 20,000, are under the management and control of a board com- posed of four persons, not more than two of whom shall belong to the same political party. They are appointed by the governor, with the consent of the senate, for a term of four years, and they may be removed by the governor for cause after a hearing. They receive a salary of $5,000 per year and necessary traveling expenses. There is also a secretary who receives a salary of $3,000 per year, and a fiscal supervisor who receives a salary of $4,000 per year. The board suc- ceeded to all the rights and powers of the several boards by which the institutions were formerly managed. It appoints the superintendents or other chief officers of the several Institutions, determines the num- ber and salary of employees, prescribes methods of accounting, pur- chases supplies for all the institutions (it is required to purchase by contract from the lowest bidder), visits and inspects the institutions and acts as a board of parole for the release of prisoners from the peni- tentiary and reformatory, and for the release of boys and girls from the industrial schools. The managing head of each institution is required to present to the board monthly estimates of needed supplies. These are reviewed by the fiscal supervisor, who then lays them before the board for Its approval. The state treasurer is the custodian of all lunds under the jurisdiction of the board, except that each institution IS allowed to keep on hand a small contingent fund. In South Dakota, the management and control of the peniten- "ary, the insane hospital, the deaf and dumb school and the rfcform composed of five members, salary $3.00 per day, the total not to exceed 380 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 381 $300.00 per year. The board is required to visit the institutions subject to its jurisdiction and it has charge of the financial management, the purchase of su{)plies, etc. Wisconsin, since 1891, has had a board of control for the char- itable, penal and reformatory institutions — eleven (11) in number having a total population of about 6,600 inmates — with power to "main- tain, govern, supervise and direct" the same. It is composed of five persons appointed by the governor (salary $2,000 per year and ex- penses) and they are required to give their entire time to their official duties. They appoint superintendents and managers, purchase supplies visit and inspect institutions and act as a board of parole and probation' In addition to their control over the regular state institutions, they are auhonzed to "investigate and supervise" all charitable and correctional institutions aided in any way by the state, and all industrial schools and all county insane asylums, poor houses, jails, city prisons and houses of correction. They make annual visits to every county jail, quarterly visits to the county insane asylums and semi-annual visits to the sol- diers home. They grant licenses for the erection of county asylums and approve plans for the same, as well as for jails, poor houses, and houses of correction. They also have the power to audit the accounts of county insane asylums. Washington, since 1901, has had a state board of control of the charitable and penal institutions, with full power to manage and govern the same. It is required to purchase supplies for the twelve institutions— nearly 4,000 inmates— under its control, as well as for the tive (5) state quarries and the state capitol, and whenever practicable to purchase the same by contract. The board consists of three per- sons, appointed by the governor for a term of six years (salary $3 000 per year and expenses). With the warden, it acts as a prison board for twelve (12) in number, with about 5,000 inmates, are under the "man- agement, direction, control and government" of a board of control school are m the hands of the state board of charities and corrections, terminating sentences and releasing prisoners in pursuance of the inde- terminate sentence law. Jn West Virginia the charitable, penal and reformatory institutions, consisting of three persons, each of whom receives a salary of $5,000 per year The board also has control of the financial and business affairs of the twelve (12) higher educational institutions and the appro- priations made for various boards, commissions, schools and associa- tions are expended at the discretion and upon the approval of the board The purchase of supplies for all the institutions, including the educational institutions, is made by the board. Jn Wyoming the charitable, penal and reformatory institutions, except the poor farm, are under the management of a board consisting ot the governor, secretary of state, the state treasurer, the auditor and the superintendent of education. The board appoints officers, fixes salaries and makes rules regarding the purchase of supplies and the care of the mmates. Michigan is the only state that, having once tried the central board of control system, abolished it and returned to' the separate board system. In 1891 the legislature abolished the separate boards of man- aj^ers of the several institutions and established two central boards, one for the management of the prisons and the reformatories, the other for the charitable institutions. In 1893 the legislature abolished the two central boards and re-established the local boards. Of these several methods, the single board system is, of course, the simplest and, on the whole, seems to be the one best adapted for securing economical business management and efficiency generally. But the doings of a board with such large powers over so many widely separated institutions should be subject to the inspection and criticism of an independent body of experts or disinterested public-spirited citizens, as is the case in Illinois and Minnesota. In the states where this system is in force there is general satisfaction with the results and the indications are that it will be introduced into other states in the near future. 2.' State Boards of Charities. In several of the states whose institutions are under the adminis- trative control of a central board, there is, in addition, a state board of charities, a state board of charities and corrections, or a state char- ities commission charged with the duty of visiting and inspecting the institutions and of making recommendations for their improvement. This Is true of Illinois, Ohio and Minnesota; and it is also true of Massachusetts (state board of visitors) and New York, where there is a mixed system of central and local control. Likewise in a majority of the other states (that is to say, those which do not have a central board of administrative control, the charitable and sometimes the cor- rectional institutions are subject to the supervision and inspection of a state board of charities or similar body with a diflFerent name. The members of these boards are generally unpaid and they give only a small portion of their time to the discharge of their duties. They have few or no powers of administrative control over the institutions, their functions being mainly visltorlal and advisory ; in short, they are super- visory bodies and not boards of control. The following states, In addition to those mentioned in the preceding paragraph, now have such boards: California (a paid board which has supervisory power and a limited power of control), Colorado, Connecticut, Indiana, Louisiana, Maryland, Michigan, Missouri, Montana, Nebraska, North Carolina, Pennsylvania, Rhode Island, Tennessee, and Virginia. The District of Columbia also has a board of charities with similar powers. In the tollowing states there is no state board of charities or state board of control: Alabama, Delaware, Florida, Georgia, Idaho, Maine. Mis- sissippi, Nevada, New Mexico, Oregon, South Carolina, Texas, Utah and Vermont (except for the insane). In Oklahoma there is a com- niissioner of charities and corrections, and in New Tersey a commis- ^P^;^ ?/ charities, who have the power to visit and inspect all state cnaritable and penal institutions and all other institutions that receive mc aid. In addition to this power, the Oklahoma commissioner is authorized to inspect private hospitals, homes, orphanages, etc., and a'so county municipal institutions. ii^ I ' I!' 1 ' ^ 382 EFFICIENCY AND ECONOMY COMMITTEE. .(1 €• I 3. Boards of Pardofl or Parole. State boards of pardon are now found in about two-thirds of the states. From the point of view of their constitution, they may be grouped into three classes: 1. Ex officio boards, that is, boards composed wholly of members who are at the same time state offi' ers. 2. Non ex officio boards, that is to say, boards composed of mem- bers who do not hold other state ofFces. 3. Mixed boards, or those composed partly of ex officio members and partly of members appointed from private life. In the first group are to be found the pardon boards of Alabama, California, Georgia, Massachusetts, Maine, Minnesota, Montana, Nevada, Oklahoma, Pennsylvania and Wyoming. In Tennessee the governor is authorized to refer to the prison commissioners for inves- tigation and report applications for pardon ; and in Vermont the gov- ernor may request not more than three judges of the supreme court to sit with him and to advise him in the exercise of his pardoning power. Pardon boards in this group are usually composed of three or more state officers, among whom the attorney general and secretary of state are nearly always included. Occasionally, however, the auditor, the lieutenant governor, and in one state (Oklahoma) the superin- tendent of public instruction and the president of the state board of agriculture are members. Not infrequently the chief justice of the supreme court is a member, and occasionally all the supreme court judges are added. In Georgia the prison commission serves as a board of pardons ; and in California the board of prison directors are required to report to the governor the names of all prisoners who, in their judgment, ought to be pardoned. In Wyoming the state board of chari- ties serves as a board of pardons. In Maine and Massachusetts the executive council advises the governor in respect to the granting of pardons. In Missouri there is a pardon attorney who examines appli- cations for pardons and makes reports to the governor. In the United Slates government, applications for pardon are examined and reported on by a pardon attorney in the Department of Justice. The states which have "mixed'* boards are Colorado, Connecticut and North Dakota. In Colorado the board is composed of the governor and three persons appointed by him ; in Connecticut it is composed of the governor, one judge of the supreme court, and four other persons appointed by him ; in North Dakota, of the attorney general, the chief justice and two other persons appointed by the governor. The states which have pardon boards composed wholly of non ex officio members are: Illinois, Indiana, Kansas, Michigan, Ohio, South Carolma and Texas. The Illinois board is composed of three mem- bers, each of whom receives a salary of $3,500 a year. The Indiana board is composed of three members, each of whom receives a salary of $300 per year and in addition an allowance for traveling expenses. The Kansas board is composed of three members with salaries of $5 CHARITABLE AND CORRECTIONAL INSTITUTIONS. 38c per day and their expenses ; that of Michigan, four members at $5 pei dav and their expenses ; that of Ohio, four members at $10 per day for time actually employed, the total amount not to exceed $75 pei year; that of South Carolina, three members at $4 per day, the total noi to exceed $80 per year; and that of Texas two members at $2,000 per year. The functions of the boards of this class are advisory in character ; that is to say, their powers are limited to the investigation of applications for pardons and the making of recommendations to the governor, in whom the actual pardoning power belongs. Some of the boards composed of ex officio members, however, especially when the governor is a member, have the full power to grant pardons and not merely the power to recommend. Generally, where pardon boards exist, they have the same powers in respect to parole that they have in respect to pardons, but there are a good many exceptions. In Illinois the board of pardons is charged with mvestigating applications for release on parole from the two penitentiaries and with making recommendations thereon; but the power to release on parole from the reformatory belongs to the board of managers thereof. In some states, like Kansas, Kentucky, Cali- fornia and Georgia, the board of commissioners or managers of the penitentiary serves as the board of parole. Several states have sepa- rate state boards of parole. This is true of New York, Indiana, low^a and Minnesota. In Indiana it consists of the warden of each peni- tentiary, the board of directors thereof, the chaplain and the physician. That of New York consists of the state superintendent of prisons and two other persons appointed by the governor, who receive salaries of $3,600 per year and their expenses. That of Iowa is composed of three members appointed by the governor, each of whom receives a salary of $10 per day for the time actually employed, the total amount not to exceed $1,000 per year and their expenses. That of Minnesota is composed of the senior members of the state board of control, the warden of the state prison at Stillwater, the superintendent of the state reformatory and one non-official member, who receives a salary of $10 per day. In several states where there is a central board of control of all charitable and penal institutions (as in Ohio, Wisconsin and Washington), this board serves as the board of parole. The United States parole board consists of the superintendent of prisons in the Department of Justice, together with the wardens and physicians of the several penitentiaries. 4. OPINIONS ON THE CENTRAL BOARD SYSTEM. Success in Other States. In the states where the central board system of managing the charitable and penal institutions prevails, the system, so far as can be ascertained, is regarded as a great improvement over the old system under which each institution was managed by a separate board, and there seems to be no sentiment in favor of reverting to the old system. flj 384 EFFICIENCY AND ECONOMY COMMITTEE. I > The secretary of the Arizona board of control, in a letter dated January 28, 1914, says: There is no desire in the state to return to the old system of a separate board for each institution. The board of control plan is so old in this state, dating back to 1895, that I have no information as to how it works as compared with the arrangement which preceded it. However, we find a great saving can be made by having a purchasing department for all state mstitutions and departments, and are inclined to believe that increased efficiency results from a central authority, and that experience gained in one institution can be used to advantage in the management of another In other words, it provides a board of experts on institutional manage- ment and also is an advantage in that it is able to adjust differences, and arrange for cooperation among the institutions. The chairman of the lov^a board of control, in a letter of January 31, 1914, says: ^ We are confident that the managing of state institutions by a central- ized body, such as our board, is preferable and more economical than under the old trustee system. Under the old plan there was more or less politics in the selection of trustees, while the law creating our board of control made it non-partisan. The board of control of Iowa is required to come in close contact with the inmates of the various institutions and with the prisoners in the reformatories and the penitentiaries. In this way we become students of character and it aids materially in knowing how to manage and control the wards of the state and, I think, enables us to take our place in the front rank of the progress that has been made in handling derelicts and dependents on the state. In a letter to a committee of the Illinois Legislature in 1908, the same gentleman said: We are in the office, when not visiting state institutions, every morning at 8 a. m., remaining until 5 p. m., and we have practically abandoned all our own private interests, with the result that all criticism in regard to the board of control has long since ceased, and I doubt if there is a single person in the State of Iowa who would advocate going back to the old trustee system. Instead of purchasing for each institution as formerly, under the trustee system, we make all our purchases for the fifteen institutions under our control at one tinie. We have a list of manufacturers and dealers in all the supplies acquired by our state institutions, and schedules with speci- fications are printed every quarter (of late semi-annually) and samples are submitted. All purchases for all of the institutions are made by us in ?H/\ °"\<^^ JP the capitol in Des Moines, and when making awards no bidder is allowed to be present. We examine the samples and note the prices, and in all our purchases goods are delivered f. o. b the city nearest to where the institution is located, so that we have nothing what- ever to do with freight rates or claims for damages if any article is injured in transit, the shipper being responsible for the safe delivery of the goods. In purchasing articles as tea, coffee, canned fruit, etc., we have samples submitted, and when goods are delivered each institution send? us a sample of the article as received, and it is compared in our office whh the sample on which the award was made. If the article is not equal to the sample on which the award was made, the shipper is notified that the goods are subject to his order, as they will not be accepted. We have no friends in the business, and it is a cold-blooded business transaction from beginning to end, with careful attention to the most minute details and securing of the best that can be had at the least possible price. When the goods are received, the institution makes a voucher and this IS forwarded to the shipper for execution, and after being certified to by the chief executive officer of the institution that the articles have been CHARITABLE AND CORRECTIONAL INSTITUTIONS. 385 received in good order, the voucher is forwarded to us and, when approved, an abstract is made and furnished the Auditor of the State, who makes his warrant on the State Treasurer, who sends check direct to the party furnishing the goods. 4 We handle no money whatever, and no money is handled at the insti- tution except that provided for in the payroll and a small amount for contingent, not exceeding $250, which is left in the hands of the superin- tendent to provide against any emergency whereby loss to the property of the state might be sustained. Due reports of all expenditures from this fund are made to our office every month and we also require a weekly statement of the disbursements of all articles at the state institutions, whether it is a paper of pins, a carload of flour, a carload of sugar, or a ton of coffee, our books being an exact duplicate of the books of the dis- bursing officers at the state institution. In an address before the National Conference of Charities and Corrections in 1902, the president of the Iov\^a board of control stated further that ''When each institution had a separate board, the members met once a month ox once a quarter to look after the affairs of the institution, taking their ow^n business v^ith them, and, of course, hurried home as soon as possible, the real management devolving upon the executive officers of the institution. Now there are three men in session every v\^orking day of the year from 8 o'clock until 5, and again in the evening, devoting their entire time to the interests of those entrusted to their care." Under this system, he adds, there was a saving of $175,000 during the first year and this notwithstanding the fact that the inmates of the institution received better care and a higher qualiy of food and clothing. A member of the West Virginia board of control, in a letter of February 9, 1914, writes: Before 1909 each public institution of the state was under the manage- ment and control of a board of directors or of regents. The state board of control has full control and management of all the state institutions except the educational institutions, and of these it has control of the business management, while the state board of regents has control of the educational side. We find the change most beneficial. There have been very large reductions made in the cost of maintaining these institutions, while their efficiency has been increased. There is no desire whatever to return to the old system of separate boards for each institution. A member of the board of control of the state of Washington, in a letter of February 2, 1914, says : The state board of control, composed of three members, has entire charge of all reformatory institutions in the state, also insane hospitals, soldiers' home, school for the deaf, school for the blind, institution for the feeble-minded, and the state penitentiary. We feel that it is a general conclusion in this state tl^at one central board is far superior to having individual boards for each of the institutions, and that it has been satis- lactorily established that there has been an improvement in the efficiency with which the institutions are managed since this change took place, some fourteen years ago. 29. The Secretary of the Wisconsin board of control writes January 1914: ,gQ The centralized board system has been in operation in this state since 18«1, more than thirty years. All of the state, charitable, reformatory and penal institutions are managed by the centralized board system in Wiscon- sm, and all those institutions have been managed by a central board since i 386 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 387 t I 1 I \ 1881. I assume that the reason why your penal institutions were not put under the management of the Board of Administration of Illinois was that it was thought by the Legislature that there would be too many institutions for .one board to manage. I am of the opinion that your reformatory- and penal institutions should also be managed by your State Board of Administration, but I think that the next best thing to do would be to create one board for the management of those institutions. The difficulty is that when institutions are managed by different boards of trustees or commissioners, there is a lack of uniformity in business methods and in accounting methods, and there is also a lack of uniformity in the policies which govern the institu- tions. I am a great believer in centralized power and centralized authority. If a board is to be created in your State to manage the reformatory and penal institutions, I believe that a centralized department should be created in the capitol and that the members of the board should be obliged to devote all their time to the management of the institutions. It may be argued that there will not be sufficient work for the members of the insti- tutions, but I believe that if efficiency is to be produced and better methods to be employed, that it will require the time of a board of at least three members. A centralized board ought not only to take care of the present needs of the institutions, but should also formulate policies for the future and things should be planned ahead. It would be difficult to show what reduction has been made in the cost of maintenance in Wisconsin by the state board of control. You under- stand that any comparison of cost in the last five or six years as compared with any previous period would not mean anything because the cost of the different supplies has so materially advanced. We know to a certainty that the institutions under the control of this board are much more efficiently managed and that they are producing better results than when they were managed by the boards of trustees. There is no sentiment in Wisconsin to abolish the present board and go back to the old system. In fact I have never heard that advocated by anybody since I have been in this department and I have been here for more than eighteen years. "Under the old system," says another witness, "each institution [in Wisconsin] was the prey of local business men; there was little or no competition in the purchase of supplies ; there was a popular idea that the institution existed for the benefit of the locality. Under the present system the per capita cost of maintenance has been steadily reduced in spite of the increased price of supplies and the expense of improvements made through the use of a surplus acquired by economy." Expert Opinion in Favor of Centralized Control of Penal Institutions. In 1902 a committee of the National Prison Association, consisting of Professor Charles R. Henderson, Dr. F. H. Wines, Professor Francis Wayland and Eugene Smith, Esq., made an investigation ot the methods of supervision and control of penal institutions in the United States and Europe. Among the questions considered was whether all the penal and reformatory institutions of a state should be placed under a single board of commissioners with powers of direction and control. The committee sent out a questionnaire to a number of penologists and officials of penal institutions, and of those who replied twenty-eight expressed an opinion in favor of a central board ot control and ten were opposed. After an elaborate examination of the systems of penal administration in this country and Europe, the com- mittee expressed the conclusion that all penal and correctional institu- tions should be placed under the control of a single administrative agency, which might be either a commissioner or a board of commis- sioners, or there might be a division of authority between the two. Central administrative control, said the committee, is the only method by which the people of the commonwealth can be assured of a unified system of equitable execution of penalties and it is the best way of securing a uniform system of purchases of supplies and a uniform and reliable system of records and accounts. As a permanent agency, it would accumulate information within the state and be able to learn the lesson of experience throughout the world. This is the system in the most enlightened countries of Europe, where the administration of the penal institutions has attained a high degree of efficiency. This recommendation is in line with present-day tendencies and it represents the views of a' majority of penologists and administrative officials who have had practical experiences in the management of penal institutions. The state superintendent of prisons in New York, in a letter of January 29, 1914, to the Illinois Committee on Efficiency and Economy, says : "The four large prisons for men, the state prison for women and the two state hospitals for the criminal insane are under the jurisdiction of the superintendent of state prisons. They have alwavs been under one central authority and I do not see how they could be otherwise operated without great loss to the state." Dr. William A. White, superintendent of the Government Hospital for the Insane, Washington, D. C, writes in reply to a request for his opinion in regard to the advisability of consolidating the management of the penal and reformatory institutions of Illinois in the hands of a single board: As to the general proposition of the advisability of placing the penal and reformatory institutions under the same board of control as head of the charities system of the State, on general principles it would seem to me a perfectly proper arrangement. I am a great believer in concentrating and centralizing both authority and responsibility. I can see objections, however, to such an arrangement, as from the present way 6f looking at things, these separate classes of institutions are doing separate kinds of work. However, from the broader humanistic standpoint they are all dealing with the inefficients in the community who have to be cared for, and If it Is realized that so-called crime Is as much a result of the inef- ficiency of the Individual to measure up to the social standards as so- called insanity, and that the so-called criminal should be treated by the State with the object of returning him to good citizenship, just as the so-called Insane person is treated by the institution with a similar end m view, then it would seem eminently proper and a step forward to group them all together under a single board of control. If that were to be done, however, I should want to feel that the moving principle back of the whole arrangement was one of progress making for higher ideals which were essentially humanistic and that the control would be In the •f ?} ^^oad-minded, generously disposed men. If this can't be done It would perhaps be better to have the penal institutions separatelv con- oucted from either the charitable on the one hand or the hosplta'ls for the msane on the other. In any event such a board would of course be a representative one, the representatives of each var>'Ing interest being present to look after their separate needs. Of course I do not know from your letter what vour problem is Apparently your committee has been created to cure certain existing, or presumed to exist, evils and no intelligent advice can be given as to how I ti.*. h\ 388 EFFICIENCY AND ECONOMY COMMITTEE. to proceed with the cure, unless the diagnosis has first been made. I therefore feel at a loss to make any suggestions to you because I do not know what you are trying to do. From the standpoint purely of economic administration the consideration of building and the furnishing, of supplies I should think it would be an eminently proper thing to group all the boards and have a central purchasing committee who would look after the supplying of all of the public institutions of the State from a central point. This could be made to have undoubted economic advantages al- though naturally it would have its great dangers because the board would have in their control large sums of money with all the consequent pos- sibilities of trouble that might ensue. Warden James B. .Smith, of the Southern Illinois penitentiary at Chester, in a letter of April 4, 1908, addressed to Hon. J. W. Hill, chairman of a Legislative Committee appointed to investigate condi- tions in the State institutions, advocated the placing of the peniten- tiaries under the control of a single board. He said : I believe that the State should have a board of control and then the warden and superintendent should give their whole time, or as much as possible to look- ing after and making a study of every man who is confined in the institution of which they are the head. In regard to the board of control I will say that I am familiar with the systems used in the various states and am more favorably impressed with that adopted by the state of Ohio than any other. Criticism of the System of Centralised Administration. A comprehensive and careful investigation has recently been made by Mr. H. C. Wright for the state charities aid association of New York of the fiscal methods of institutional administration in the states of Iowa, Indiana and New York. In Iowa all the fifteen charitable, penal and reformatory institutions are under the management of a central board, which purchases supplies and controls the finances of the institutions. In Indiana each separate institution is under the control of a board of managers, which purchases the supplies for its own institution and controls the financial administration of the institu- tion without being subject to the control of any central authority. The Indiana and Iowa systems are, therefore, directly opposite in vW^^^u^' -^P ^^^ ^^^^ ^^^ institutions are divided into three classes: (1) The prisons and hospitals for insane criminals are under the control of the state superintendent of prisons; (2) the other insane hospitals, which are under the control of a state commission in lunacy, and (3) the charitable institutions, whose fiscal operations are subject to the control of the state fiscal supervisor. The managing officer of each institution is required to prepare estimates of the supplies needed by his institution and to transmit these to the central officer or author- ity (the state superintendent of prisons in the case of prisons ; the fiscal supervisor in the case of the charitable institutions), who has power to grant or refuse the supplies asked for, or to decrease or increase the amount of the estimated price. Nothing can be purchased by an institution except upon approval of the estimate by the supervising authority. In practice, the superintendent of prisons seldom refuses the estimates or alters the estimated prices. The fiscal supervisor, how- ever, frequently reduces the prices in the estimates of the charitable institutions. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 389 Mr. Wright calls attention to the advantages of the estimate system and the common purchase of supplies for all thejnstitutions ; but at the same time he points out several disadvantages, one of which is to make the superintending office merely an administrative agent of the central department. The kind and quality of the supplies he uses are deter- mined at Albany. He is told how and where he may purchase them ; and he may be told, and in some cases is, just how he shall dress the inmates. He is told how many teachers he may have in the school The fiscal supervisor controls absolutely the finances of the charitable institutions and practically dictates every feature of their management. Even the medical department, we are told, which falls more directly under the supervision of the state board of charities, is practically control ed by the fiscal supervisor, since he can dictate the number of medical officers which the institution may have. He is, in short the sole arbiter of the management of the charitable institutions. This dictation from Albany, says Mr. Wright, of minute details tends to destroy initiative on the part of the superintendents and to make them indiflFerent as to the results that they may attain. In the various institutions visited, there was an atmosphere of discouragement and a tendency to throw the responsibility of everything upon the con- trolling officials at Albany. ^ ^ f The requirement that no articles may be purchased by the super- intendents or wardens except upon estimates approved by the proper authority often handicaps the managing officials and interferes with the ?ood administration of the institutions. On one occasion, for example the superintendent of one of the institutions wrote to the fiscal super- visor asking for the privilege of purchasing, in advance of estimating tiierefor, three lengths of stove pipe to replace a rusted-out one. The nscal supervisor gave him permission to purchase the said stove pipe, Diit cautioned him against oversight of this kind in the future On for . h' .?r'''/'?"i ^^/ ^^^f\ supervisor refused to approve an estimate lor a bottle of ink desired by one of the institutions on the ground that the estimate did not specify the size of the bottle. • ,, ^^^^^ [" general the estimate system tends to prevent extravagance in the purchase of supplies, it does not permit superintendents to take w " uu ""^ ^ J^"^ ^^^^^ market. Thus local farmers often oflFer pota- .?H li ?^f ' ^'■'l'^' ^""^ ^^^^^ ^^*^^^^s ^f this character at rates con- IZ u 1 T *^^ ""^^^^^ P"^^' ^t ^^^^h they could be purchased rrom wholesale market men. An example was aflForded by the follow- ing case : nmcrMT^-^^r^^ institutions desired to purchase a stack of hay from a mif.innT/ ir^""^^"*/* "^^^ necessary for the superintendent to set per- ?ran ?nc. /rf"" ^he fiscal supervisor at Albany. As there was a delay in Rranting the permission, the superintendent took the liberty of purchasing v^L^U.' t''"'t^"f ^^5^ his action would be approved. In fact, however, it 7nrJ.T^!i''''''^\u'''^ severely criticised and it was only after considerable correspondence that the fiscal supervisor would permit payment for the that nn/^^!u^ X? t^^, ;^l"t purchase of supplies, Mr. Wright declares under the New York system butter has cost more than when pur- I 390 EFFICIENCY AND ECONOMY COMMITTEE. ! \ I chased by separate institutions ; that ninety (90) per cent of the butter was below contract specifications ; that the same was true of the beef supply and other articles. Mr. Wright criticizes the methods of the fiscal supervisor, who, he says, has so administered his office as to lessen the attention and strength which the superintendents would otherwise be able to give to the care of the inmates. The necessity of almost daily argument on the part of the superintendents with the fiscal supervisor's office by means of correspondence, telephone and telegraph, to secure small arti- cles of daily need has left little time to be devoted to the larger needs of the institutions. His policy seems to have been to appear to save by reducing the prices permitted for any and all articles wherever possible, regardless of the insignificance of the article or the amount of the reduction. The result has been that what in a great many cases appears to be a saving was an actual loss, due to the substitution of an inferior article or due to the necessity of paying an amount of freight or express. The New York estimate system, he says, is very expensive, amounting to about $30,000 a year in the fiscal supervisor's depart- ment and $19,000 a year in the lunacy commission. In fact, the cost of operating the supervising offices in New York is out of all proportion to the expense of maintaining the institutions. Thus the cost of oper- ating the offices of the superintendent of prisons, the lunacy commis- sion, the boards of managers, the fiscal supervisor, the board of char- ities and the state architect amounts to $238,488 per year, whereas in Indiana the cost of supervision amounts to only $30,000 and in Iowa $37,510. Mr. Wright defends the Indiana system, where each institution is under the management of a separate board. He finds that the insti- tutions there are economically administered and the welfare of the inmates carefully looked after. Supplies are purchased as cheaply under the Indiana system as under the New York or Iowa system. But he admits that conditions in Indiana are somewhat exceptional, due to the fact that the state has had for many years men with very unusual qualifications upon its institutional boards. In conclusion, he makes the following suggestions : (a) An institution with an inmate population of 400 or over can ordinarily secure as low prices as can a central body with power to con- tract for larger quantities. (b) Superintendents and stewards and boards of managers exercise as discriminating and reliable judgment in the selecting and contracting for supplies as is now exercised by central bodies. (c) Institutions, whether operating independently without central control, or up to the present time with central control, do not meet as efficiently as seems desirable, some of the larger problems of institutional management which require expert knowledge. (d) In those institutions which seem to do the best work and seem to care for the inmates most satisfactorily, the superintendent is given. under the general direction of the board of managers, a large degree oi liberty with a corresponding responsibility. CHARITABLE AND CORRECTIONAL INSTITUTIONS. IN FOREIGN COUNTRIES. 391 1. In England. Poor Relief. In England the management of the charitable and penal insti- tutions, as well as the control of the poor relief generally, is more unified and centralized than in the United States. Control and super- vision of poor relief is centered in the local government board, whose president is a member of parliament and of the cabinet. The staff of the board includes a permanent secretary, a parliamentary secretary and a corps of inspectors. Its powers include the organization of poor law authorities, the issuing of orders and regulations, supervision of the administration of poor relief by the local authorities, the collection of the poor law information, the hearing of appeals from the local poor law authorities in respect to complaints against guardians, and the determination of disputes between poor law unions. The supervision of poor law administration by the local authorities is carried out through a system of rigid inspection by agents of the local government board, who make regular visits to the work houses, asylums, homes and other institutions for poor relief, and who attend, meetings of the local poor law authorities. A strict control of the financial operations of the local poor law authorities is exercised through the examinations of the auditors, of whom there is one for each of the fifty districts. The local poor law authorities are required to keep their accounts according to a uniform system prescribed by the Local Government Board. The administration of poor relief through private agencies is like- wise subject to the supervision of the state. The organization through which this supervision is exercised is the charities commission created by an act of parliament in 1853. It consists of four members appointed by the Crown, and its jurisdiction embraces all privately endowed charities, with a few exceptions. It is empowered to examine the accounts of private institutions and to compel their officers to make reports to it; to remove and appoint trustees of such institutions; to order changes in the administration of a particular charity, and to take measures looking toward the safe custody and investment of their funds. Care of the Insane. The administration of the asylums for the insane has been defi- nitely centralized by a recent Act of Parliament (3 and 4, Geo. V., ch. 38, 1913). Prior to the enactment of this law the asylums were admin- istered by county councils committees, subject to some supervision by commissioners in lunacy, who are aided by local visiting committees. The act of 1913 substitutes a central board of control composed of fifteen commissioners appointed by the Crown, of whom not more than twelve are salaried, and of whom four must be barristers at law and iour practitioners of medicine. At least one of the paid commissioners must be a woman. The staff of the board includes a secretary and a number of inspectors. In general, the powers of the board of control a 392 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 393 :l *ii I embrace the functions of supervision, protection and control over de> fectives; supervision of the administration of the local authorities in so far as they are charged with duties in relation to defectives; super- vision and inspection of homes and institutions for the care of defec- tives; and the establishment and maintenance of institutions for dan- gerous and violent defectives. The commissioners in lunacy, the Lord Chancellor, the judges or masters in lunacy, and the local authorities retain certain powers in relation to defectives which were not trans- ferred to the board of control by the Act of 1913. Penal Institutions. Prior to 1898 the prison administration of England, although very definitely centralized, was nevertheless divided between two authorities, those in charge of the convict prisons and those in charge of the ordi- nary prisons. Both sets of authorities, however, were under the control of the Secretary of State for Home Affairs, which gave the system a unified and centralized character. By an Act of 1898, both bodies were consolidated and their powers vested in the Prison Commission. This commission is composed of not more than five members, appointed by the Crown upon the advice of the Secretary of State for Home Affairs. It is vested with the superintendence of prisons, appoints subordinate officers, makes contracts, releases offenders upon probation from the Borstal institutions, and performs such other acts as are necessary for the maintenance of the inmates of prisons subject to their control. The commission is required to visit and inspect all prisons within its jurisdiction, not only in respect to the welfare of the pris- oners, the state of the buildings, etc., but with reference to their finan- cial operations, earnings of prisoners, expenses and other like matters. In the discharge of these duties the commission is aided by a staff of inspectors and auditors, who make reports to the commission and keep It mformed in regard to the condition of the several prisons. The financial supervision of the prisons is exercised by two officials of the commission, who bear the title of store accountants. In addition to the mspections made by the prison commission, the law provides for mspections by visiting committees of justices of the peace, one annually appomted for each prison. They are charged with hearing complaints troni prisoners and they make reports to the Secretary of State con- cernmg abuses which they find, and in regard to other matters which, in their opinion, need attention. Finally, any justice of the peace having jurisdiction in the locality in which a prison is situated or in the community where the offense for which a prisoner is confined was comrnitted, may enter in the visitors' book any observation which he sees fit to make in respect to the condition of the prison or any abuses therein, and it is made the duty of the jailor to call the attention of the visiting committee at the time of their next visit to such entry. The Borstal institutions — reformatories in which offenders be- tween the ages of 16 and 21 years and also incorrigible adults not guilty of any particular crime are confined— are subject to the same adminis- tration as the other prisons and reformatories. The administration of certain other institutions of a reformatory and industrial character, for the confinement of offenders under 16 years of age, is less central- ized, although they are under the supervision of the Secretary of State for Home Affairs, who exercises his powers through inspectors. 2. In France. Charity Administration. In France the administration of poor relief is divided among the communes, the departments and the state. But whether the adminis- tration is local or central, the state exercises supervision over all insti- tutions of public assistance and over their activities along certain lines. There are nine institutions, most of them asylums, which are under the direct and immediate control of the state. They are under the control of the minister of the interior, through whom also the state exercises supervision over local charitable institutions and activities. Two bureaus in the ministry are charged with these duties, namely, the "direction" of assistance and public health, and the service of general inspection, to which should be added the superior council of public assistance. The latter is an advisory board composed of ex officio members within the ministry and of non-official members having special qualifications with regard to the problems of poor relief. It holds meetings for the purpose of discussing policies, criticising pro- posed measures and for advising the administration. Every department into which France is divided (87 in number) is required to maintain a public asylum for the care of the insane or to enter into arrangements with a private asylum for the maintenance of its insane. Private asylums can be established only by authority of the government and they are subject to the supervision and inspection of the government. Although supported mainly by local taxation, the departmental asylums are under the control of the state. They are managed by directors appointed by the minister of the interior, the other officers being chosen by the prefect, who is himself an appointee of the minister of the interior and an agent of the central government. Communal hospitals and alms houses are managed by an adminis- trative commission in each commune, a portion of the members of which are appointed by the prefect of the department. Associations for private relief may now (since 1904) be organized without govern- mental authorization, except where they desire to receive gifts and legacies. They are still required, however, to make a ''declaration of existence" to the government. They are subject to inspection by the state authorities and their methods of administration are subject to alteration by th£ state. In general, it may be said that poor relief in France, whether administered by public or private agency, is under the control and supervision of the central government. !^ ^ I V) 394 EFFICIENCY AND ECONOMY COMMITTEE. Prison Administration, Until very recently the administration of all penal institutions was in the hands of the minister of the interior of the central government. In 1911, however, after long agitation, it was transferred to the min- istry of justice. The prisons are divided into three classes, (1) the departmental, or short sentence prisons, including houses of correc- tional justice and houses of detention; (2) the central houses of detention and correctional justice; (3) the colonies for juvenile delin- quents. The minister of justice stands at the* head of the service for the administration of the prisons. Within the ministry is a department or "direction" of penal administration, and it is subdivided into three bureaus : (1) A bureau having charge of the execution of sentences; (2) A bureau which has charge of general matters, statistics, etc. ; and, (3) A bureau having charge of establishments for juvenile offend- ers, parole, etc. The inspection of prisons, however, remains with the authorities (in the ministry of the interior), which have charge of the inspection of the charitable institutions. Reports of the inspectional authorities are made to the minister of justice. In harmony with the well-estab- lished principle of French administration of associating a consultative council with each important administrative authority, there is a superior council of prisons created for the purpose of giving advice to the administrative authorities and for criticising proposed policies and measures. It is composed of thirty-six members, of whom twenty-four are ex officio members and twelve are non-official persons who are chosen because of their special knowledge of penological matters. It holds two meetings a year for the purpose of considering matters relating to the construction and repair of prisons, rules for the internal administration of prisons, the distribution of subventions, classifications of penal institutions, etc. ' In addition to the superior council of prisons, there are a number of committees and commissions created for the purpose of consultation in respect to various special and more or less technical matters relating to the administration of the prisons. Local prisons, detentions, reformatories and similar institutions, although locally administered, are under a more or less strict central control and supervision. Private institutions, which are partly educa- tional, partly industrial and partly reformatory in character, are under the general supervision of the state, which also appoints the director by which they are actually managed. Both public and private reforma- tories and penal colonies are under the surveillance and inspection of a council composed of various official and non-official members, one of whom is appointed by the prefect. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 395 3. In Germany, Poor relief in Germany is regulated by imperial laws which apply to all the states of the empire with the exception of Bavaria. For the purpose of local administration there are two sets of authorities: the local poor unions and the general poor unions, the greatest part of the relief being administered by the former. Unlike the English and French systems the administrative control of the state over poor relief is not very strict. Disputes between local poor unions are, however, settled by the judicial authorities and disputes between unions of dif- ferent states are determined by the "deputation of home affairs," with the right of appeal to the Imperial Home Office. Charitable Institutions. The administration of charitable and reformatory institutions is, in Prussia, a part of the administration of poor relief. They include such institutions as workhouses, and asylums for the insane, for epilep- tics, for the blind, and for the feeble minded, all of which are under the supervision and control of the state. As a rule this control is actually exercised by the provincial and communal diets through super- intendents chosen by the diets. Regulations adopted by the local assemblies for the government of charitable and reformatory institu- tions, however, require the approval of the minister of the interior. It is by this means that the state is enabled to exercise an effective control over the institutions. In the other German states all such institutions are supported directly by the state and are therefore under the more immediate con- trol of the state. Penal Institutions. In Prussia the penal institutions are divided into three classes: (1) penitentiaries; (2) ordinary prisons; and (3) fortress prisons. Those of the first two classes are under the administration of the civil authorities ; the fortress prisons are under the administration of the military authorities. Of those which are civilly administered, the peni- tentiaries and certain of the larger ordinary prisons, the sentences of whose inmates exceed three months, are under the ministry of the interior; the others are under the ministry of justice. The official who exercises direct authority over the prisons of each province is the ober prlisidetit, an appointee of the king and the representative of the central government in the province. His acts require the approval of the minister, who appoints the chief administrative officials and issues re.e^ulations for the government of the prisons. The management of the prison is in the hands of a director or superintendent who is advised by a board though its advice is not binding upon him. Outside of Prussia the prisons are usually under the ministry of Justice and there is a rigid system of inspection of all prisons. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 397 i: III III. SUGGESTIONS AND RECOMMENDATIONS. A. THE CHARITABLE INSTITUTIONS. At present the charitable and penal institutions of Illinois are ad- ministered according to two different systems, based upon opposite principles of administrative organization, although fundamentally the two classes of institutions are very similar, and no substantial reason exists why they should not be managed and controlled by the same sort of administrative machinery. A dual system of organization and ad- ministration for a group of institutions which, for administrative pur- poses, belong in the same class is anomalous. If reason and experience have shown, as they seem to have, that the charitable institutions can be more efficiently and economically administered by a single central board than by a series of separate boards, one for each institution, it is difficult to see why a similar system should not be adopted for the management and control of the penal and reformatory institutions. The results of five years experience with the system of centralized control of the char- itable institutions have undoubtedly demonstrated that it is both more efficient and economical than the old system of control by separate un- paid boards which gave only a small portion of their time to the dis- charge of their official duties. Apparently the new system has worked out satisfactorily in practice and there is no desire to return to the old system in force before 1910. The present system is certainly in harmony with the best tendencies of modern administrative organiza- tion and it represents the ideal toward which charily experts have been striving for some years. Finally, the adoption of this system of cen- tralized control by so many states during the last few years indicates that it is destined to become in the near future the prevailing system of institutional administration in this country. Under these circumstances it does not appear that any important changes in the present law for the management and control of the charitable institutions are desirable. The system of administration by a single board for all the charitable institutions should be retained sub- stantially as it is.^ However, at least one minor change in the Act of 1909 is advisable, and there is another suggestion which perhaps de- serves some consideration. 5. If the Board of Administration were not already established and the <'jin^'"\^;''|]p institutions were now under separate boards, as before 1910, the question shouKJ '» considered whether the board form of orj,'anization is the best method of oentraiiz^" control. Much might be said in favor of a single director as the executive «««''"' all the charitable and correctional institutions, with deputies or subordinate i'''^ Charities Commission, liut in view of tlie recent establishment of the I^o"''';^ " Administration and the decided improvement it makes on the former system, it se* advisable not to propose radical changes in this field, when reorganization is so nun more necessary in other directions. First of all it is worth considering whether the inspectional ma- chinery which the Act of 1909 provides for the charitable institutions is not more elaborate than considerations of efficiency require. As the law now stands three different authorities or sets of authorities are required to inspect the charitable institutions: (1) the Board of Administration itself; (2) the Charities Commission and (3) local boards of visitors, one for each institution. The provision of the Act of 1909 authorizing the appointment of local boards of visitors to inspect the charitable institutions should be repealed. In practice the provision has until now been a dead letter, since with a single exception no local board of visitors has been appointed for any institution. The value of the service performed by such boards if they were appointed, would be very questionable. In all probability they would be composed of persons who would have no special qualifications, and unless they were given an opportunity to visit other institutions for the purpose of comparing the conditions and standards prevailing in them, their judg- ment of the standards of efficiency in the particular institution which they are commissioned to visit would be of doubtful value. The Chari- ties Commission with its inspectors, who are or should be experts in the field of charity administration, is the proper authority for inspecting the charitable institutions, for pointing out unsatisfactory conditions and recommending legislative and administrative measures for their improvement. A change which the Board of Administration favors is the with- drawal of the training school for girls at Geneva and the St. Charles school for boys from the jurisdiction of the Board of Administration and the placing of both institutions under the department of public instruction. The argument in favor of the proposed change is that both institutions are largely educational in purpose and that therefore they do not properly fall within the class of charitable institutions. But they are primarily correctional rather than educational institutions and do not properly constitute a part of the educational system of the State. In the other states where central boards of control for the state institutions have been established all such institutions as industrial and trammg schools for delinquent boys and girls are under the jurisdiction of such boards rather than under the educational authorities. B. THE PENAL AND. REFORMATORY INSTITUTIONS. Turning to the penal and reformatory institutions, each of which IS under the management and control of a separate board, the system ^\ould be improved by either of the following changes : They might be placed under the existing Board of Administration diong with the charitable institutions, as is the case in the states of Sn f?"?; /°^^' Minnesota, New Hampshire, North Dakota, Ohio, Th KMi r ^^' Washington, West Virginia, Wisconsin and Wyoming. ne bill of 1909 as originally introduced so provided, and in this form was favorably reported by the Senate committee to which it was unT u ^^^ inclusion of the penitentiaries and the reformatory "^er the Board of Administration was urged by the State Conference ill LI 398 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 399 I I „ i I of Charities and Corrections and was advocated by many charity and penological experts in and out of the State; but the provision was stricken from the bill on the floor of the Senate, chiefly on the ground that owing to the large number of institutions in the State the placing of them all under the management of a single board would impose upon it a task so large that it would be difficult if not impossible for the board to give proper attention to all the institutions. Since the board has now effected a permanent organization, devel- oped the necessary administrative machinery, and its staff has acquired more or less familiarity with the problems connected with the adminis- tration of the institutions, the objection has less force than it had in 1909. Members of the board have declared that the addition of another member to the board or a slight increase in its clerical staff would pro- vide it with the necessary machinery for managing the other three institutions. - Undoubtedly the board could purchase supplies for twenty-two institutions as easily as it can purchase for nineteen, and there are other services which could be performed with equal ease and efficiency for both classes of institutions as for the one class. Nevertheless, it is obvious that the more the number of institutions under the juris- diction of the board is multiplied the less care and attention will it be able to give to each particular institution. The addition of the two penitentiaries and the reformatory to the institutions under the con- trol of the board will bring under its jurisdiction and control more than 300 additional employees and more than 3,000 inmates, to say nothing of the increased business and financial operations, due to the operation of extensive industries by these institutions. Other states, it is true, have consolidated the management of all their charitable and correctional institutions in the hands of a single board and with good results. But no one of these states has so large a number of institutions as has Illinois. If we add to the number of institutions already under the management of the board, the three institutions that have been provided for but which have not yet been constructed, and the penal and reformatory institutions we shall have a total of twenty- five, with an aggregate population of more than 20,000 inmates. In view of these facts the wiser plan would appear to be to create a separate commission, composed of three members, for the manage- ment and control of these three institutions. This was the solution proposed in Senator Manny's bill in 1*909 and it is the plan that has been adopted in a number of states where there is more than one such institution. Among these states are California, Kansas, Kentucky, Tennessee, and Texas. Whichever of these two plans is adopted, whether the mana^^e- ment of both groups of institutions shall be centralized in a sind^ board or whether each group shall be under the control of a separate board, upon one point there can be little difference of opinion, namely the desirability of abolishing the existing separate boards by which each of the penal and reformatory institutions is managed and the con- solidation of the administration in a single authority. It may be said that the duties of such a commission would not be sufficiently numerous and important to occupy their entire time; but even if this be admitted, the objection has little weight since the aggregate salaries of the three proposed commissioners would be less tlian the amount now being paid in the form of salaries to the existing commissioners. There is little doubt that such a commis- sion would find its time fully occupied. In case the separate boards were abolished provision would have to be made for devolving the duties of the board of prison industries upon some other authority. This authority would naturally be the new board of prison commis- . sioners. The duties of the board of prison industries in several other states are performed by the central board which has control of the penal institutions. Thus in California they are performed by the state board of prison directors, and in Minnesota, Ohio, and Wisconsin (states which hav(i a central board of control for all charitable and penal institutions, they are performed by the board of administration. Further the board of pardons should be abolished and its duties as well as the duti es in respect to parole now performed by the board of managers of the reformatory devolved upon the proposed board of prison administration. The members of the present board of par- dons receive a salary of $3,500 per year and the total cost of main- taining the board and its clerical staff amounts to about $18,000 per annum. The actual work involved in the investigation of applica- tions for pardons and for releases in parole does not seem sufficiently large to justify the employment of a salaried board on full time In most states which have boards of pardons such boards are wholly or largely ex officio, that is, they are composed of certain state officers who receive no extra compensation for their services. In but six states (Indiana, Kansas, Michigan, South Carolina, and Texas) besides Illinois, do we find salaried pardon boards composed of persons who are not at the same time holders of other state offices; and in but few of them does the salary attached to the office exceed several hundred dollars a year (in Indiana, $300 a year; in Kansas and Michigan, $5 fv, ^^in '^' "°^ ""^""^ ^^^"^ ^^^ P^^ y^^""' South Carolina, not more man $«0 per year; Texas, two members at $2,000 per year). . In California, Georgia and Kentuc4cy the board of prison commis- sioners serves as the board of pardons, while in Ohio, Wisconsin and Washington the board of control of state institutions performs the amies in relation to parole (but not in respect to pardons). With out three institutions under their control, the proposed board of prison imn""'!?'?"^!"^ "^^"^^ ^^""^ ^^P^^ ^'"^^ to perform all the duties now ^18 mn ^ ^"^ ^"^ ^^^ ^^^""^ °^ pardons, and thus an economy of ^l«,000 per annum would be effected. ^ It is worth considering whether in case a separate board for ne management of the penitentiaries and the reformatory is created visor .f.r^ ^^ desirable to extend the authority of the fiscal super- the t. la charitable institutions over the penal institutions, so that undlr,^''^ charitable and penal institutions of the state, although ^er two separate boards for purposes of administration, would never- 400 EFFICIENCY AND ECONOMY COMMITTEE. CHARITABLE AND CORRECTIONAL INSTITUTIONS. 401 I \ * theless be subject to the fiscal supervision of a single authority. This would be a means of securing uniformity of financial and business operations in respect to both classes of institutions which in our judg- ment is very much to be desired. Whether the penal and reformatory institutions are managed and controlled by a single board or by separate boards, as they now are, they should be subjected to the visitorial, inspectional and investigative jurisdiction of the State Charities Commission. The Hay, Manny and McKenzie bills, of 1909, all provided for the inspection of these insti- tutions by a board of charities and corrections. As has been said, the charitable institutions are subject to the inspection of three different bodies; but the penal and reformatory institutions are subject to no supervision or inspection other than that of their own local boards. That is, each board of managers and it alone, has power to inspect its own work. This is an anomalous situation. These boards have under their care more than 3,000 prisoners and they control the expenditure and disposition of more than two million dollars annually, yet their methods of dealing with prisoners and their financial oper- ations are not subject to the inspection or supervision of any authority. Before 1909 the reformatory was subject to inspection by the State Board of Charities, but this power was not given to the present chari- ties commission. Finally, there are two provisions in the act creating the reform- atory that need to be altered in the interest of more effective discipline and punishment. The first of these provisions is section 12 which authorizes the courts to sentence to the reformatory offenders between 16 and 21 years of age who have not been previously sentenced to the penitentiary. The supreme court has held, in the case of Hender- son vs. the People, 165 111., p. 607, that this section did not apply to a person under 21 years of age who had been previously sentenced to the reformatory. A reformatory, said the court, must be dis- tinguished from a penitentiary; that a sentence to the penitentiary implies infamous punishment and involves consequences to a convict of a much more serious character. It matters not, therefore, how many times an offender under 21 years of age may have been previ- ously sentenced to the reformatory he cannot be resentenced to the penitentiary. The result of this decision is to compel the reformatory to receive criminals who may have already served one or more terms in the reformatory; and whose presence therein is dangerous to the welfare of the institution, and who ought properly to be confined in the penitentiary. The difficulty occasioned by the supreme court decision can be removed by inserting the words "or reformatory" after the word "penitentiary" in the fourth line of said section and by insert- ing the same words after the word "prison" in the eleventh line. In this form the section would be similar to the corresponding provision in the Minnesota law in respect to the reformatory. The other provision which needs amendment is section 15 author- izing the board of managers of the reformatory to transfer to the penitentiary incorrigible prisoners whose presence in the reformatory is deemed to be detrimental to the best interests of the institution aftd of its inmates. The supreme court, in the case of the People vs. Mallary, 195 111., p. 582, held this provision to be unconstitutional on the ground that it conferred judicial power on the board of managers. Such an act by the board of managers said the court is not merely a determination of the conditions of circumstances under which the prisoner may be committed to the penitentiary but it is the exercise of judicial power which the Legislature can not confer upon such a body. Nevertheless the court suggested that legislation might be feo framed as to make the order of transfer from the reformatory to the penitentiary a mere determination of the conditions on which the prisoner could lawfully be transferred from the one institution to the other, but section fifteen (15) as it now stands can not be so constrtied. •lihxtoJinaH .III insriinocJ gisnoiagirnmoD £. ..... .J . ^ The objection raised by the court migl^t ,bfiTi^fli9Ye4,;by ^iffti^n^i^g section 1 5 to read as follows : > - J v'l « k ..a oj :>iijlj i Whenever in the judgment of the board of managers or the proposed board of prison commissioners, any inmates of the reformatory between the ages of 16 and 21 years persistently violates the rules of the institution in regard to the discipline and good conduct of the prisoners or otherwise becomes incorrigible, so that his presence therein is detrimental to the best interests of the institution and its inmates, the board of managers may file a petition before the circuit court in the district in which the reformatory is located stating the causes upon which the application is based and asking that an order be issued for the transfer of the said offender to one of the penitentiaries. After notice^ has been duly served upon the §aid offender and after a hearing at which he shall have the right to be represented by counsel the court may, if satisfied of the truth of the charges alleged in the petition issue an order for the transfer of such person to the penitentiary. Whenever, in the judgment of the board of commissioners of the penitentiary to which he has been transferred his return to the reformatory would not be detrimental to tHe best interests of the reformatory the board may in its discretion re-transfer him to the reformatory. , , . , . .,. r » • ■' '1 r XJL^r,3-i!c 8 A .oorn^z tnoiorrta aiom odi bnr> anoilrit rp, ;'ia '^ffTfr^ .'^flt 1r, f'Of.fff'iftrc,rrL *n3w viotr.fmoLTU bnfi 33i*y;;lu^ti inis m substance is the procedure m New Yorlc for transierrmg incorrigibles from the reformatories to the penitentiary. Or,. the offender might be sentenced in alternative either tp the penitentjary or the reformatory, it being understood that ii^ would as a n^atter. of course be committed to the reformatory, leaving the board 6 f managers (or the board of prison commissioners in case such a board is created) to transfer him to the penitentiary upon the happening of certain con- ditions specified in the law. Comparative Expense. At present the aggregate salaries of the fourteen members of these Doards is $25,000 per year, not including expenses and salaries for clerical assistance which amounts to about $5,000 per year, mak- i"^?^^ total cost for salaries and clerical help for the three boards w,000 per year. This sum would provide a salary of $5,000 for ^ch of three proposed commissioners and leave a balance of $15,000 year for clerical and other expenses. With this salary the com- Ki H ^^MkS n A02 EFFICIENCY AND ECONOMY COMMITTEE. missioners could be required to give their whole time to the dis- charge of their official duties instead of a small portion as is now done by the members of the existing boards. In addition to securing uniformity in the administration of the several institutions the efficiency of the control exercised by such a board would undoubtedly be vastly increased ; and the cost of maintaining the institutions should be largely reduced. Below is given a summary of the salaries for administrative officers under the present and proposed organization of correctional institutions : Present Organisation. Per Year 3 Commissioners Illinois State Penitentiary @ $1,500 $4,500 3 Commissioners Southern 111. Penitentiary® 1,500 4,500 5 Managers Illinois State Reformatory @ 1,200 6,000 3 Members State Board of Pardons @ 3,500 10^500 1 Clerk to Board of Pardons @ 2,000 2,000 Total .$27,500 Proposed Organization. 3 Members Board of Prison Administration @ $5,000 $15,000 1 Pardon Clerk @ 2,000 2,000 Total $17,000 Reduction under proposed organization $10,500 There should also be a further direct saving in clerical and office expenses, by concentrating the purchase of supplies and business man- agement of the institutions in one office. But the direct saving in salaries and office expenses will be a small part of the total economy of the proposed organization. The most important results should appear in the reduced cost of maintenance and operation of the insti- tutions and the more efficient service. As already noted, if the pen- itentiaries and reformatory were maintained at the same per capita cost as in the institutions under the State Board of Administration there would be a saving in ordinary expenses of more than $200,000 a year. An equal or greater saving should also be possible in the opera- tion of the prison industries. A REPORT ON EDUCATIONAL ADMINISTRATION BY JOHN M. MATHEWS ASSOCIATE IN POLITICAL SCIENCE UNIVERSITY OF ILLINOIS u U !l T^OHlH>I A no MOITAHTar/ilMaA JAVlOITA.DUaH RV/HHTAM M MHOT 8I0MIJJI '50 iVim) iM.l'.;-.;ypii'.T^.^«?;'J .1 .411 Comments and Suggestions ^ifiV . .s;4'.y.C- A' J 412 •n. 1 r T^j • m^o^J/M v*iol"=^iH Imninv ^,7 A State Board of Education ^rfiiM' t>.->h\;tr:! H 'jm^ ' 117^^ The County Superintendent * .....^ .et-s^fati* JijI. j,^i>>- • • .418 Election, Qualifications, Term and Salary. . j.»*)i.Hw.i-;* J. .>!*>i. • • -418 Powers and Duties ; . .u.*i«irfw*i /isil. ©.v^Jsk:<>}ir>«i. . . .418 Relations to other Authorities. .i«>(4i^Ji:ijfiiii-4.. i>tv;.€*»T.i,f«i3..Tt<>t<>» • -419 Comments and Suggestions ..^r>2•^3rfto•prrTwflr.■!?;?fmrIthA••rr^rr^d• •'^^^ Local School Officers and Units «.«..««...., t f . • o«sf>ifxv5 • • .422 Comments and Suggestions , ,,-.^_^^ nr.'^-to^^f -n/;* ?.rnf ; 1 ^ t •;irj'>:j" -^^ Management of Local School Funds ,^.j^^.p .^^j-^ • • -424 Special Educational Institutions .'?5b.**Xn^I .QWi^> . . .427 University of Illinois Q-a^^^, k-ibpXii U . . .427 -Tiu;^f^ The Normal Schools ..._ i^Ae/iCiroMrncM "^ •• •^Mr,'jV-|r?vr,^4v,x-r r.nnfl-M-v^*'*** Too ...... t.-c.iorofaotri'i oj .,- D. Summary of Recommendations ^^.^«j,^;i •'if?tcrY/*3ii?j*> • • -^^^ II. EDUCATIONAL ADMINISTRATION IN OTHER STATES AND COUNTRIES. j.*!. .1^1^7433-455 ojV.v:-.)'. :pf»trif jv, A. Educational Organization in Europer-'?. rviOo. m.?/^.'>*->r<(^.{»3f*x>]€K)Ti • ••433 ''^' France ♦ »v) .wi$iJ*>Mo>?'J^'S*?iV* • • -400 Germany ;. J44Wi.w'*wi'.ii . kvifii.-; . ivVi;.-. fi(»iti;ixkiKsc»0 • ^>?>s©f>o5r.'^> • • '434 B. State Educational Administration ;.,..'. ^Pl'l^r^t: ^ . . .436 State Superintendents .V ; . '.Vi'^r.T?. % . . .436 State Board of Education -|,,|5jy,(.^^.*<>,^ •,-,,.» . .4o/ Plan for State Educational Organization.... .%.|. a,,.f,^^^^^f . . .438 Managing Boards for State Universities v. * . . J^yj;?)*? • • -439 C. Central Boards of Control for State Educational Institutions .i>3A>JI. ..441 • South Dakota Regents of Education tai^urit 441 Minnesota Financial Control , .^, .,.,.,..,... .442 Central and Local Boards in Georgia. ..:;::!:!VvV5:!7;'£f,^^:.^^^i^/. .442 Florida Board of Control 7 .'^rfl^r.'.'^.lv'.T.':^'. 1. ..443 West Virginia Dual Control 443 Iowa State Board of Education 444 Montana Board of Education 445 Mississippi Central Board 447 Oklahoma State Board of Education 447 Kansas State Board of Administration 447 Idaho State Board of Education 448 Oregon Board of Higher Curricula. . ^ 449 Types of Central Boards 450 County Normal Schools . . . State Normal Schools Comments and Suggestions State Board of Education . . . I ! .1 I i i itii *)!' n If 11 Si Page D. Central Normal School Boards Azn New York .'.*.*.*.'.*.*.*.*.'.'." 45? Pennsylvania .'.*.*.*.* 451 Massachusetts !!!!!!!!!* 45] Connecticut ^ .!.!.. 452 New Jersey ...!!... 45? Maryland !....!. 452 Michigan acj Wisconsin ^m Minnesota 453 ^ ^"^^^^s .-..:: :....::::;:::::453 E. General Comments 453 Reports of Educational Commissions [ "453 President Van Rise's Conclusions 'aS4 Suggestions as to Educational Reorganization in Illinois .....455 III. STATE LIBRARY ADMINISTRATION 456-464 A. Library Administration in Illinois 455 The State Library * * * 455 Natural History Museum .*.*.*.'.*.'.' .456 State Historical Library [ * * 457 Law Libraries .457 Library Extension Commission !!!458 Legislative .Reference Bureau .• * .453 Staff, Salaries and Annual Appropriations .458 B. Library Administration in other States 459 Summary ' 4^ C. Suggestions for Reorganization in Illinois 463 State Library 453 State Librarian 454 Historical Research .!!.!..... .464 IV. SCIENTIFIC SURVEYS 465477 Agricultural Experiment Station ......'.*.'.*.'..*.. 465 Engineering Experiment Station 466 State Laboratory of Natural History 467 State Entomologist 467 State Water Survey .469 State Geological Survey 470 Mining Services 471 Geological Surveys in other States ,/...,........ .472 State Conservation Commissions 473 Proposed Organization of United States Educational and Scientific Agencies 474 Comments and Suggestions .'. . . ', . . . . . .476 V. EXAMINING BOARDS 478-489 Board of Law Examiners 478 Board of Examiners of Architects 479 Board of Examiners in Accountancy 481 Comments 482 VI. SUMMARY OF RECOMMENDATIONS 484-485 Financial Summary 485 I I. EDUCATIONAL ADMINISTRATION IN ILLINOIS. A. INTRODUCTION — HISTORICAL NOTE. Public education in Illinois is carried on by the State and by the local units of government, the county, municipality, the township and the school district. The instrumentalities established for this purpose include a system of elementary schools, and higher grades of schools, together with normal schools and the State University. A study of public school administration in Illinois involves a consideration of the organization of the authorities and agencies. State and local, which are charged with carrying on such administration, together with the rela- tions existing between them, of the methods adopted in carrying out certain important educational processes, and of the organization and interrelations of special educational institutions. It is scarcely pos- sible to avoid giving considerable attention to local educational agencies, both on account of the large share of control and management over schools left to the localities, and also on account of the importance of the relations existing between the local and central educational authori- ties. A brief historical note will serve to indicate in main outline the origin and development of present conditions. No specific mention of education was made in the Constitution of 1818; but the constitu- tional convention of tiiat year accepted the proposition of Congress with respect to setting aside certain lands and the proceeds from the sale of certain public lands for school purposes. The first general school law in the State was enacted January 15, 1825. The main feature of this act was the provision that there should be free schools in every county in the State, to be supported partly by local taxes and partly by State aid. The county commission- ers were authorized to divide the counties into districts, containing not less than fifteen (15) families each. Three district trustees were to be elected by the voters of each district at the annual meeting, and to these trustees were intrusted the important powers of examining and employing teachers, holding and leasing school property, and exercis- ing general management and control over the schools. This was an ambitious and somewhat too elaborate system for the needs of a State so undeveloped and sparsely settled as Illinois then was, and very little use seems to have been made of the act. It is said to have caused clamorous opposition, and by an act of February 17, 1827, its force ^as greatly weakened, if not entirely nullified, through the provision making the suppgrt of schools in each district optional with the voters o| the district, and forbidding the taxation of anyone for the support of schools without first obtaining his consent in writing. The incorporation of townships and the election of township trustees of schools were provided for by an act of March 4, 1837. 408 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 409 I These trustees were to manage the schools and to make reports to the county school commissioner as to the state of the township school funds, and also as to the number of schools kept, the number of scholars taught, and the length of the school term. For the first time a requirement was made in the law for the certification of the qualifica- tions of teachers by the township trustees before they could leeallv he paid out of the school funds. s r oe A general revision of the school laW Wks effected by an act of February 26, 1841, which repealed all former acts, but retained their mam features. It embodied a system of combined district and town- ship administration through the provision for the election of three school directors in each district as well as for the election of trustees pf each school and of township trustees of schools. „ (. Prior to 1845 the. only form of supervision over the local schools exercised by higher officials was the rather loose and ill-defined super- visory power vested in the hands of township and county officers. Fur- ther than the county, administrative supervision did not extend, and little pr^no State control was exercised over the schools except by gen- eral legislation and through the weak and indirect control produced by the policy of State aid. By an act of February 26, 1845, however, the Secretary of State was made ex officio State Superintendent of Com- mon Schools, while, at the same time, the county school commissioners were made ex officio county superintendents of schools. Nine years later, by an act of February 18, 1854, the office of State Superintendent of Public Instruction was created. ,.. ,_. . , l.jj.'^^^ constitution of 1848 contained fittfe reference to education, ffi^'Onry specific provisions being those which authorized the exemption of school property from taxation, and provided that the corporate authorities of school districts might be vested with power to assess and collect taxes. These provisions, however, merely recognized existing conditions, and confirmed powers which were already being exercised. , ^>''^'The school system of Illinois as^Wd it¥'f)Wketir^Hape^m main 6ttfline by the general act of February 15, 1855, which was enacted largely upon the recommendation of the first State superintendent. Nmian W. Edwards. This act retained the State Superintendent, and the previously established township and district school boards ; changed the county school commissioners to county superintendents; forbade the employment of teachers without legal certificates of qualification ; and provided for a state tax of two mills on the dollar, to be added annually to a six pet cent income from the school funds, and for local taxation to such amount as would enable the schools to be maintained for? a six month term. The act also authorized district directors to issue bonds for the erection of school buildings. Thus in 1855 was completed in main outline the foundation of the present school system of the state. Sufficient financial support was at last provided by this act so that the school "rate*' might be abolished and a system of really free schools established throughout the State. Changes made since the enactment of the law of 1855 have not gone to the root of the structure. qni?ln the Constitution of 1870 the State for the first, time placed in ififiWgahic lawa mandate fof the establishment and tnaintenance of a system of free public schools. That instrument contained a special article dealing with education, providing, among other things, that upon the General Assembly should rest the duty of providing "a thor- ough and efficient system of free schools whereby all the children of the State may receive a good common school education." Since the Constitution of 1870, there have been three general re- visions of the school law of the State, in 1872, 1889 and 1909, the last being made as a result of the recommendations of the State Educa- tional Commission, created in 1907. The principal recommendations made by that Commission, after extensive and thorough investigations in this and other states, were as follows : 1. A recodification of the existing school law. 2. The creation of County Boards of Education. 3. The creation of a State Board of Education. 4. A plan for the certification of teachers. 5. Making the township the unit of school organization. 6. A plan for the improvement of teachers institutes. 7. A minimum salary law for teachers. 8. Increased salaries for county superintendents. Only the first, fourth and eighth of these recommendations have been carried into effect by the General Assembly. Owing to the ob- scurity and ambiguity into which the general school law had fallen, due to numerous amendments made since 1889, the most crying need was for a recodification of the various provisions into a comprehensive and systematic statement. This was finally effected by the general revision of June 12, 1909. On the same day an act was passed in- creasing the salaries of county superintendents, and, on June 28, 1913, was enacted a comprehensive plan for the certification of teachers. B. ORGANIZATION OF SCHOOL AGENCIES. General Observations. A principle which is now well recognized is that free public educa- tion is a matter of such vital importance to the general welfare and interests of the State as a whole that it cannot be safely left to the mere voluntary action of the localities, but the State itself must see to it that the children of the State receive a good common school educa- tion, either by direct action or through supervision by the State of the educational agencies and facilities supplied by the localities. In re- gaM to these two methods of dealing with the subject, the State has |n the main adopted the former method, or direct action, for the carry- ing on of higher and professional education, while leaving to the locali- ties the direct management of elementary and secondary schools. Although this separation seems necessary on account of administrative and historical reasons, nevertheless the well-being of higher education cannot be disassociated from the management of elementary schools, l^jie connection between higher and lower education is such that any wide-spread inefficiency in the lower grades will affect adversely the carrying on of higher education in State institutions, and disseminate an injurious influence throughout the whole system. Both, therefore, iiom the standpoint of the interest which the State has in the carrying i • .. i ■ 1 J 410 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. • 411 11 I III '•' on of higher education, as well as from that of its direct interest in the efficient management of elementary education, the State cannot safely allow the lower grades of education to be managed by the locali- ties without higher administrative supervision. To effect this purpose county supervision alone is not sufficient, and the State has therefore established a central administrative authority or agency, with super- visory power over the State school system. The Superintendent of Public Instruction. As has already been pointed out, the Secretary of State was in 1845 made ex officio Superintendent of Public Instruction. He was empowered to advise the county superintendents, to recommend text- books, maps, charts and apparatus, to endeavor to systematize the means of supporting the common schools, and was required to make biennial report? to the Governor. This power of recommending text- books et cetera was repealed in 1857. The Secretary of State, on account of his numerous duties, was unable, with the best of intentions, to devote adequate attention to the schools, and the separate office of Superintendent of Public Instruction was therefore created in 1854, with powers similar to those previously vested in the Secretary of State. Election, Qualifications, Terms and Salary. ^ The office of Superintendent of Public Instruction has from the beginning been filled by popular election, and at first the term was only two years, but, by the Constitution of 1870, this was lengthened to four years, and it was provided that the election for Superintendent of Public Instruction should come midway between the elections for the Governor and principal officers of the executive department. He re- ceives a salary of $7,500, but no qualifications are required of him, ex- cept of a bond of $25,000. Powers and Duties. The functions of the State Superintendent may be classified into the following groups: (a) Supervisory. — He is empowered to supervise all of the com- mon and public schools, to make rules and regulations for carrying into effect the provisions of the school law, to visit, examine and require reports from such charitable institutions of the State as are educational in character, to designate the particular statistics which school officers are required to report to the county superintendent, to authorize county superintendents to procure necessary assistance to conduct teachers' institutes, and to require reports from county superintendents, town- ship trustees and authorities of townships, cities or districts maintain- ing schools under special charters. (b) Advisory and Judicial. — He may advise county superinten- dents as to the manner of conducting schools, constructing and furnish- ing school houses and examining and procuring competent teachers. He is the legal adviser of school officers, and it is his duty, upon request of any school officer, to give his opinion in writing upon any question arising under the school laws of the State, and he is empowered to hear and determine all controversies arising under the school laws, coming to him by appeal from county superintendents. (c) Administrative and Financial. — He is empowered to exam- ine teachers, grant and revoke certificates and recognizes those from other states. He serves as ex officio member of the boards of trustees of the State normal schools and of the State University. He may re- quire the Auditor of Public Accounts to withhold from the county superintendent the amount due his county from the State school fund, or the said county superintendent for his compensation until the county superintendent shall have presented to the State superintendent such information relating to the schools in his county as the State superin- tendent may require. He may also require the county superintendent and local school officers to withhold from any township, district or officer any part of the common school, township or other school fund until such officer shall have made all reports required of him by law. Relations to other Public Agencies. The State superintendent is required to transmit biennially to the Governor a report containing various statistics regarding the schools, including the number and condition of schools in each county, the number of male and female teachers and of pupils in attendarice, the number of persons under 21 years of age and the number of illiterates in each county ; the conditions of the State and township school funds, the amounts raised by taxation and annually expended for schools ; the number, kind and condition of school houses; the number of townships and parts of townships in each county ; the amount and cost of books and apparatus purchased for the use of schools, and the number of district libraries. This report is transmitted to the General Assembly at each regular session. The State Superintendent has supervisory power over the Auditor of Public Accounts in the distribution of school funds. Appeals may be carried to the courts from the decision of the State superintendent. The relations of the State superintendent to the local school authorities have been indicated in connection with the description of his powers and duties,_and are principally supervisory in nature, such as the requirement of reports upon penalty of the with- holding of State school funds. Staff of Agents and Employes. In order to carry out its duties, powers and functions, the State Department of Education is supplied with the following staff of of- ficers and employes : State Superintendent $ 7,500 Supervisor of High Schools 4,000 Three Assistants @ $2,800 8,400 Clerk 2,000 Two statistical clerks @ $2,000 4,000 Two stenographers @ $1,200 2,400 One stenographer 900 Messenger and Clerk 1,100 Janitor 600 Total Salaries $30,900 412 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 413 ■ ir Office Expenses 5 OOO Work of Education Commission * l,'ooo Conducting Examinations l^'soo Total Salaries and Expenses, per annum $39,400 Comments and Suggestions. With regard to the method of selecting the Superintendent of Public Instruction, inasmuch as it would require a constitutional amendment to change the present method of election by popular vote, it may not be within the province of the Efficiency and Economy Com- mittee to make recommendations with regard to the matter. Never- theless, it may be worth while to mention the matter briefly. The practice of other states discloses four different methods adopted for selecting the state superintendent, namely: (a) appointment by the legislature; (b) appointment by the state board of education; (c) appointment by the Governor, and (d) election by the people. The first method of appointment by the legislature seems to have made little appeal in other states, as it is found in only one or two of them. Inasmuch as there is no real State board of education in Illinois, the second method is not feasible under present conditions. We may therefore consider the relative merits of appointment by the Governor and election by the people. , The large majority of states still continue the method of election by popular vote, but in those states in which appointment by the Governor has been adopted, it has proved fairly satisfactory. Of the two methods, political consideration would prob- ably enter into the selection of this officer to a less extent through ap- pointment by the Governor. The provision of the Constitution of 1870 that the State superintendent should be elected midway between gen- eral elections for other State officers indicated a recognition on the part of the framers of that instrument of the desirability of keeping him as far as possible out of politics, and was an effort on their part to effect that object. To some extent it has undoubtedly done so; yet, under present conditions, it is impossible for the best man for the position in respect to ability, experience and attainments to secure the position if he happens to belong to the opposite political party to that in power. It is of course true that such a man would not always be secured even by the method of appointment by the Governor, but it is probable that he would be more often secured by this method. Appointment by the Governor would also have the advantage of making it possible to bring to the position a man from outside the State, if a better man could be secured in this way. At the time, for ex- ample, that the present state superintendent of New Jersey was ap- pointed to his position by the Governor of that state he was holding a similar position in Indiana. Residence in the state is of course a quali- fication of value which ought to be considered, because, other things being equal, a resident is more familiar with the conditions with which he will have to deal. But there may be other qualifications, such as executive ability and professional attainments, which are of more im- portance and which outweigh the disadvantage of non-residence. Un- der the system of popular election, even though residence is not pre- scribed as a legal qualification, a non-resident, no matter what his at- tainments, would seldom if ever stand any chance of securing the posi- tion. Yet, it would certainly seem that there should be no tariff wall around the State to prevent the importation of professional ability in the management of schools. Cities have frequently resorted to the practice of securing men from the outside to place at the head of their school system, and, as a result, some of the best educators in the country are now occupying positions as city superintendents of schools in cities to which they came from elsewhere. It would seem that simi- lar advantages would result from the adoption of a similar practice by the states. Under the present circumstances, however," It is not feasible to make the State superintendent appointive by the Governor through a single amendment to the Constitution, and such a change, if it comes, would have to wait upon a general revision of the Constitution. In the event of such a general revision, the question of making the Super- intendent of Public Instruction appointive by the Governor would naturally be involved in the broader question of introducing a short ballot for the State by making all or nearly all of the chief executive officers or heads of departments appointive by the Governor. At all events, whether the State Superintendent of Public Instruc- tion is made appointive by the Governor or remains elective by popular vote as at present, it would seem both desirable and feasible to pre- scribe for him certain qualifications of a professional character. In many states which have made no such provision, qualifications of a professional character are as a matter of fact observed in practice, but there seem to be advantages in expressly confirming this principle by leg^islative enactment, and half a dozen or more states have done so. The qualifications so prescribed may be classified as definite and indefinite. The latter class is illustrated by the requirement in Tennes- see that the superintendent must be a "person of literary and scientific attainments." The purpose of such a provision, on account of its indefinite character, is liable to be defeated. The better provisions would seem to be those of a definite character, such as are found in Wisconsin and Montana. In Wisconsin it is declared that "no person shall be eligible to the office of state superintendent of public instruc- tion who shall not have taught or supervised teaching in the State of Wisconsin, for a period of not less than five years, and who shall not hold the highest grade of certificate which the state superintendent IS by law empowered to issue." In Montana it is provided that the superintendent of public instruction "shall have attained the age of ^0 years and shall have resided within the state two years next preced- ing his election, and be the holder of a state certificate of the highest grade, issued in some state, or a graduate of some reputable university, college or normal school." The principle of requiring professional n^ialifications is more important than the exact details of the require- nients, but, in order to make the matter more definite, it may be recom- i^ended that the following qualifications should be prescribed for the ^tate superintendent of Illinois, viz: that he shall be a holder of the i I i ! Li 414 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 415 highest state certificate issued in Illinois or of a certificate of equal grade issued in another state, and shall have had at least five years experience in teaching or supervising teaching. There would seem to be need for an increase of the powers of the State superintendent and a strengthening of the powers v/hich he already possesses. The office is now largely advisory and clerical in character. If the efficiency of the school system is to be increased one of the most essential means to that end is an increase in the power of control vested in the central department of education. If the desid- eratum laid down in the Constitution that the children of the State shall receive a good common school education is to be realized and if uuu^ ^^^^ "P^" ^^^ General Assembly by the Constitution that there shall be provided a thorough and efficient system of free schools is to be performed, then the local autonomy and freedom from control of the local school officials in managing schools must not be allowed to extend to such a degree as to defeat the will of the State as thus solemnly expressed in its organic law. At the present time the State superintendent has neither direct nor express supervisory power over many important educational processes and matters connected with the operation of the schools, and such matters are therefore left to the practically unregulated control of local school officials. Among such matters may be mentioned the arrangement and sanitation of school buildings, the fixation of teachers' salaries, the enforcement of the attendance of school children, the selection of text-books and determi- nation of the course of study, and the appointment of the conductors of teachers' institutes. There are other needed processes, such as the medical inspection of school children, which are scarcely done at all, because of the inertia of the localities and the lack of power of the central authorities. That some improvement can be brought about in the conduct of such matters by the localities by means of recommendations, advice, publicity and the dissemination of information cannot be denied, and much has undoubtedly been accomplished in Illinois in this direction. Where local officials are well intentioned but ignorant, the dissemina- tion of information as to improved methods has often proved eflFective in bringing about improved conditions. It results, therefore, that, as regards some of these matters, as, for example, the imposition of a State course of study, the investment of the State superintendent with actual power of legal control would merely have the effect of enabling him to confirm conditions that already exist over most parts of the State. As regards other conditions, however, w^hich cry out for remedy, the State superintendent is reduced to the impotence of vainly issuing circulars and letters to local school officials, in which he humbly begs to call their attention to the vital need of safeguarding the health of school children by the improved sanitation of school buildings or the installation of improved kinds of desks and other furniture. If the adnionitions of the State superintendent are not observed, he can do nothing further. The question may well be raised whether the tax- payers have not the right to protest against the spending by the State of large sums of money on public education, unless the State goes further and sees to it that the proceeds of the taxes are expended in the one best adapted to conditions, such a measure seems too drastic. the most efficient manner possible under the circumstances, so that the educational facilities extended to each school child shall be the best and most improved that can be supplied under present conditions. It would not, of course, be feasible or desirable, with regard to most mat- ters, for direct management of educational processes to be taken out of the hands of the local officials and centralized in the State depart- ment. But a greater amount of central supervision and control over many such processes seems both feasible and desirable. At present the State superintendent is empowered to enforce his control over some matters by withholding certain funds from recalcitrant local officials. This method of enforcement is open to objection, however, on the ground that, if exercised, it would have the effect, in many cases, of bringing hardships upon those who are in no way to blame for the delinquencies of the school officials,- namely the teachers and school children, whose interests it should be the primary aim to preserve and promote. A less objectionable and more effective means of enabling the State superintendent to enforce his rules, regulations and decisions would be to vest him with the power to suspend or even to remove such local officials as may disobey such rules and decisions or be guilty of flagrant neglect of their official duties. Nevertheless, however, desir- able theoretically such a method of enforcement may be, it is doubtful whether centralized control to such an extent would be tolerated in the present state of public opinion in Illinois. Until public opinion shall become educated up to a greater reali- zation of the desirability of central control, it is probable that the State superintendent will have to continue to depend, for effecting improvement in many matters, upon recommendations, publicity and widespread dissemination of information. In may, however, not be premature to extend his legal authority in certain specific directions, to be noted later. Meanwhile, it may be worth while to point out that improvement in the management of the local schools and a greater degree of central control could probably be brought about by a closer relation and more effective co-operation between the State superintendent and the county superintendents, and also by greater contact and association of the county superintendents with each other. The supervision of- the county superintendent over the schools in his county will tend to become more efficient if he is given or required to take more opportunities of com- ing in contact with and imbibing ideas from others occupying similar positions and from the State superintendent. In North Carolina an annual conference between the State superintendent and the county superintendents is held, which every county superintendent is required by law to attend unless providentially hindered, his expenses being paid out of the county school fund. The state is divided into five dis- tricts of twenty counties each, and there is also an annual conference in each district attended by the State superintendent and the county superintendents of that district. Each county superintendent, then, has the opportunity of attending a conference with the State superintendent ^t least twice a year. Some such scheme might with advantage be adopted in Illinois, though, if it can be brought about by voluntary action, no special legislation need be enacted. I ri l^li !? i I 416 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 417 i: r The development in the organization of the central office of the State department of education has as yet proceeded but a short dis- tance. There are, it will be noticed, three assistant superintendents but the only official in the central office whose functions have become definitely and expressly specialized is the supervisor of high schools though, m the case of the assistant superintendents and the statistical clerks, tendencies toward specialization can be seen. Under present conditions this tendency toward specialization has probably progressed as far as practicable, but il the amount of means placed at the disposal of the department should be increased, new lines of educational activ- ity could be entered upon, new avenues of control over local school matters could be developed, and the exercise of existing functions could be strengthened. As has been indicated, the regular appropriations for the expenses of the State department of education amount to less than $40,000 annually, while those for the office of the Attorney- General, excluding large appropriations for expenses in special cases • amount to about $63,000 annually, and those of the Insurance Super- imendent amount to about $73,000 annually. It would seem that both efficiency and economy would be enhanced by increasing the approp- riation for the expenses of the office of the Superintendent of Public Instruction in order to enable that official to strengthen his forces and expand his work. While it may be desirable to increase the present State appropriation of $3,000,000 for schools, it is believed that a larger return in increased efficiency of school management and super- vision would result from a given increase in the appropriations for the central department than from a proportional increase in the ap- p^priation for schools. Such increased appropriation for the central office, together with security of tenure for his appointees, would en- able the State superintendent to build up an expert staff with special- ized functions. The organization of the office should bear a rather close relation to the number and extent of the functions to be per- formed. The work should be divided according to some logical scheme of classification, and each division of work placed in separate bureaus with one assistant superintendent assigned to each department or to a group of related bureaus according as the amount of work may demand or the number of available officials may allow. Care should be taken to keep separate, as far as practicable, the work of the office which is of a strictly educational nature from that which is more of a business character. A purely tentative plan of organization may be suggested as follows : Bureau of Law Bureau of Statistics Bureau of Finance Bureau of Buildings Bureau of Health Bureau of School Attendance Bureau of Text-books and Course of Study Bureau of High Schools Bureau of Rural Schools A State Board of Education. Illinois is one of the few states in the Union which has no State board of education. The body which bears the name of the State board of education is really only a board of trustees for one of the State normal schools. The State educational system, which involves the expenditure of about $40,000,000 annually and the employment of over thirty thousand teachers, is of such magnitude that its proper management demands the best care of the State. Although there should be a single executive officer at the head of this system, never- theless many problems come before the single executive head which he could be assisted in solving through the advice and counsel of a State board of education. Such a board, if properly constituted, would add dignity and strength to the management of the school affairs of the State. The state boards in such states as Massachusetts, New York, Indiana, and California have worked well, and the tendency is to in- crease the number of state boards of education and to enlarge the powers of those already existing. Iowa and Kansas have recently established state boards with control over the educational institutions of those states. Kansas has abolished the separate boards of trustees of the state university, state normal school and agricultural college, and given the state board direct supervision over these institutions. The various state boards of education may be classified as follows : those which have supervision only over the common-school system proper, those which have supervision only over special or advanced institutions, such as normal schools and agricultural colleges, and those which have supervision over both the common-school system and the advanced or special institutions. The Illinois Educational Commis- sion proposed, in 1908, the creation of a State board of education, con- sisting of the State superintendent as ex officio chairman, and repre- sentatives of each of the following school interests, to be selected by the Governor, with the approval of the Senate : The University of Illinois, the State Normal Schools, the non-State colleges and universi- ties, the city superintendency, the county superintendency, the public high schools, the non-State high schools, the State elementary schools, the non-State elementary schools, and two eminent citizens of the State not directly engaged in educational work. They were to serve for an eight-year term and receive no compensation except for expenses. Ac- cording to the plan of the Commission this board was to have general supervisory power only over the public school system, and would therefore be placed in the first of the classes above mentioned. The composition of the proposed board has many merits, though it might be criticized on the ground that a board of eleven members in addition to the State superintendent is apt to be unwieldy, and that there is too great a preponderance of educators on the board. It would probably he better to reduce the size of the board by eliminating the repre- sentatives of the non-State high schools and elementary schools, thus increasing the relative weight of the non-educators on the board. In pase such a board should be established in Illinois, the effectiveness of Its cooperation with and support of the State superintendent would doubtless be increased by giving it the power to appoint that officer. - i t 1 \\ X . 418 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 419 This, however, as has been pointed out, would necessitate an amend- ment to the Constitution. The further question remains as to whether the powers of the proposed board should not be broadened so as to give it some supervision or advisory functions over the special or advanced institutions of the State, such as the State norrnal schools and the educational work of the charitable institutions. This question will be again referred to in connection with the discussion of the normal schools. The County Superintendent. The county superintendent of schools in Illinois was originally merely a county land officer, and only gradually were educational func- tions assumed by him, and these pertained at first rather to the busi- ness and financial side of school management than to the purely educa- tional side. By the Act of 1841, however, the office of county school commissioner was made elective, and by the Act of 1845 the county school commissioner was made ex officio county superintendent of schools, with power to visit and inspect schools and to examine and certificate teachers. He was required to make an annual report to the Secretary of State. Later his title was changed officially to county superintendent of schools, and by an Act of 1865 he was required to visit every school in his county at least once a year. This requirement was practically abolished, however, in 1872 by the provision that it should depend upon direction by the county board, but in 1885 was restored. The Constitution of 1870 provided that "there may be a county superintendent of schools, whose qualifications, powers, duties, compensation and time and manner of election and term of office shall be prescribed by law." Election, qualifications, term and salary. In pursuance of this constitutional provision the General Assembly has provided that the county superintendent shall be elected quad- rennially by the qualified voters of each county, and before entering upon his duties, shall execute a bond of $12,000. By Act of June 12, 1909, the salaries of county superintendents are regulated by the popu- lation of each county according to the census of 1900, varying from $1,250 to $2,750 in counties of less than 100,000 population, and $7,500 in counties above 100,000. The salary is paid from the state school fund, and may be increased by the county board out of the funds in the county treasury. Powers and Duties. The principal powers and duties of the county superintendent may be classified as follows: (a) Professional and Supervisory: — To remove school directors for neglect of duty ; to decide controversies arising under the school law ; to visit each public school in his county at least once a year ; to direct and advise school officers and teachers in their work, and hold teacher institutes ; to hold examinations, and issue, renew and revoKC teachers certificates; to require reports from township trustees; and employ assistants, with the approval of the county board. (b) Administrative and Financial: — To direct in what manner township treasurers shall keep their books and accounts, and to exam- ine such books and accounts at least once a year ; to sell township fund lands, issue certificates of purchase and report to the county board and Auditor of Public Accounts; to apportion the State school fund to townships and pay over the share due to each township treasurer; to bring suit against the county collector for failure to pay the amount due upon the Auditor's warrant ; to investigate and determine all mat- ters pertaining to changes in the boundaries of school districts ; and to give notice of the election of trustees and of district elections in case of failure by the township or district officials. Relations to other Authorities. The county superintendent acts in general under the advice of the State superintendent, and reports to him annually such information relating to the schools in his county as the latter may require, under penalty of having withheld from him the amount due his county from the State school fund. He also reports to the Auditor of Public Ac- counts regarding the sale of towriship fund lands. The county superintendent entertains important relations with the county board. He is required to report annually to the board con- cerning his acts as superintendent, with lists of schools visited and dates of visitation; also concerning the amount of school funds dis- tributed to each township treasurer, and balance on hand; the condi- tion of the institute fund and of any other fund in his care; and the sales of common-school lands. The county board audits the bills and accounts of the county superintendent, examines and approves or re- jects his report, and authorizes him to employ needed assistants, and fixes their compensation, to be paid out of the county treasury. The board also approves the superintendent's bond, fills vacancies in the superintendency, and may even remove the superintendent from office in case of his failure to make the required reports, or "for any palp- able violation of law or omission of duty." With regard to the local school officers within the county, the township trustees of schools are required to prepare or have prepared by the township treasurer or district boards of directors and forward to the county superintendent an annual report exhibiting the condition of the schools in the several townships, under penalty of forfeiting their share of the distributive school fund for the following year. Dis- trict boards of directors are required to report to the county superin- tendents promptly the names of all teachers employed. In case of the failure of the township trustees to report to the county superintendent the information required, the latter may gather such information through persons of his own appointment. The county superintendent examines and approves or disapproves the bonds of the township treasurers, and may "remove any school director from office for wilful failure to perform his official duties." if • ^1 420 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 421 Comments and Suggestions. It will be observed that the county superintendent entertains im- portant relations, both with the higher state officers and with the local school officers within his county, and therefore occupies an influential position in the State school system. Some consideration, therefore, should be given to the possibility of increasing^the educational efficiency of this officer. The fact that the county superintendent was originally a county land agent may account in part for the absence of any educational qualifications required of him. Although the assistants whom he may be authorized to appoint must be "versed in the principles and methods of education, familiar with public-school work, and competent to visit schools," he himself may have no educational attainments or exper- ience whatever, so far as the law is concerned. And this is true in spite of the fact that the Constitution expressly enjoins upon the Gen- eral Assembly the duty of prescribing the qualifications of the county superintendent. In pursuance of this mandate that body has done nothing further than to provide that he shall execute a bond. The execution of a bond, however, does not in the least pertain to the primary and most important functions of the office, which are essen- tially educational in character, and it is probably not this sort of quali- fication which is contemplated by the constitution. It is possible under the present law for county superintendents to be chosen who are in- ferior in scholarship and educational experience to many of the teach- ers whom it will be their duty to advise and supervise in educational work. It would seem to be clear, therefore, that definite educational qualifications should be prescribed for the county superintendent, and such a requirement would not be legally incompatible with the elective character of the office. This principle of requiring professional quali- fications for this officer has been established in many of the most im- portant states, including Wisconsin, Michigan, Kansas, Nebraska, Iowa and Indiana. It is suggested that such qualifications should extend at least as far as the requirement that the county superintendent shall be a holder of a teachers' certificate of the highest grade which Ire is com- petent to issue, and shall have had at least two years experience teach- ing in the public schools. It may be questioned whether the present method of selecting the county superintendent by popular vote secures the best results. It has the practical effect of making residence in the county a necessary qualification for the office, and it may be doubted whether this is wise in all cases. Moreover, popular election has the effect of injecting political considerations into the choice, and disqualifies all, no matter what their educational attainments may be, who do not belong to the dominant political party. The county superintendent should be an expert in educational matters, but popular election is not a method calculated to secure such a person. While popular election is the method still obtaining in the majority of states, a number have adopted the method of appointment, either by a central state officer, or by a county board of education, or a board composed of local school officers. In Pennsylvania, for example, he is appointed by the school directors of each county, and, in Indiana, by the township trustees of each county. The method of election by a board composed of the local school officials was recommended by some of the early State superintendents in Illinois, but the number of such local school officials is so large that such a board would be cumbersome. No county board of education exists in Illinois ; but it is a question worthy of consideration whether such a board should not be established, with authority to appoint the county superintendent, and possibly other functions, such as examining and licensing teachers, issuing rules and regulations for governing the schools in the county, and consolidating schools. Until and unless such a board is created, however, the county board of supervisors or board of county commissioners might be entrusted with the function of appointing the county superintendents. This should not be done, how- ever, unless provision be made so as to insure the selection of a com- petent person by the county board. In order to effect this purpose it is suggested that the county superintendent be appointed by the county board from among the persons having the qualifications already pro- posed, subject to the subsequent ratification of the State Superintend- ent of Public Instruction. If it is deemed best not to make the ap- pointment of the county superintendent by the county board subject to the ratification of the State superintendent, then the power of remov- ing the county superintendent for cause should be transferred from the county board to the State superintendent. The compensation of the county superintendent, as pointed out, ranges between certain amounts, depending upon the population of the county. Since the amount of the salary is thus definitely fixed, there exists no incentive to a more efficient management of the schools through the prospect of a larger salary to be gained thereby. More- over, total population is not a very accurate measure of the amount of work and responsibility which devolves upon the county superin- tendent. A better measure of responsibility would be the- number of schools in the county, provided city schools are not counted at full value, on account of the smaller amount of supervision needed over them by the county superintendent. If the total attendance at schools were made the basis, it would be an incentive to the county superin- tendent to extend educational facilities to as large a proportion of the community as possible. The question is therefore suggested for con- sideration whether the salary of the county superintendent should not be fixed upon the combined basis of number of schools in the county and aggregate school attendance. Jhe powers and duties of the county superintendent, as has been noted, fall broadly into two classes, educational and non or quasi-edu- cational. It would seem desirable that he be relieved of some of the atter class of functions in order that he may devote his time and atten- lon more largely to his strictly educational duties. As long as he is weighted down with clerical duties and financial cares, the efficiency 0/ Jus supervision over the schools and of his promotion of the educa- wV.^ u ^"^^^^s^s of the county is likely to be diminished. A question wnich should be considered, therefore, is the desirability of transfer- 422 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 423 It 'li 11- ring from the county superintendent such functions as giving notice of school elections and apportionment of school funds to other county officers, such as the county clerk or county treasurer. Local School Officers and Units. The local units of school administration in Illinois below the county are townships, school districts and cities. In each township three trustees of schools are elected by the voters of the township, and the trustees so elected choose the township treasurer. The functions of the trustees are mainly financial and those pertaining to the division of the township into districts. A township containing less than two hundred persons under twenty-one years of age may be consolidated with an adjoining township. The township trustees may divide a dis- trict into two or more districts, when petitioned by a majority of the voters of the district, and may consolidate two or more districts into one district, when petitioned by a majority of the voters of each dis- trict. A township or district containing a population of 2,000 or more may by majority vote establish a high school, under the control of a high school board. The district is the primary and fundamental unit of local school administration. In districts having a population of less than one thousand, a district board of three directors is elected by the voters of the district. The only qualifications required of those officers is that they shall be of legal age, be residents of the district, and able to read and write the English language. Among the more important powers and duties of the district board are to provide for the revenue neces- sary to maintain schools in their district through the levy of an annual tax upon the taxable property of the district, not to exceed one and one-half per cent for educational and one and one-half for building purposes, to adopt and enforce all necessary rules and regulations for the government of the district schools, to visit and inspect the schools, to appoint and dismiss teachers for cause, and fix the amount of their salaries, to establish and keep in operation at least six months a suf- ficient number of free schools, and to direct what branches of study shall be taught, what text books and apparatus shall be used, and to enforce uniformity of text books in the schools, and not to permit books to be changed oftener than once in four years. In districts having a population of between one thousand and one hundred thousand, a board of education is elected, consisting of from seven to fifteen members.^ Such board has the same powers as the school directors and also certain additional powers. In cities of over one hundred thousand the board of education consists of twenty-one members appointed by the may or with the consent of the common council, and has large powers of control over the public schools of the city, iJn some cities by special acts passed before 1870 city school boards are appo'"*^ by the mayor. Comments and Suggestions. The principal defect which has shown itself in the local adminis- tration of schools is in connection with the district system. This sys- tem was established in this state when Illinois was in the infancy of its growth, and is a type of school organization adapted only to primitive conditions and sparsely settled regions. There may be a few parts of the state in which the district system is still that best suited to condi- tions, but in much the larger portion of the state, such a primitive type of organization has been outgrown. Whatever advantages attach to the district system, and there are some, are greatly counterbalanced by its defects. It necessitates many elections and the creation of a vast army of local school officials, estimated in Illinois to number about 45,000. This is an average of several hundred to a county, and it is doubtful whether that many competent men can be found in the aver- age county. The large powers of control over the schools granted to each district board of directors makes each district largely independent of other districts and also of the higher control. The very consider- able degree of local autonomy vested in school directors regarding many matters, such as fixing the salaries of teachers, often operates practically to defeat the will of the state, as expressed in the Constitu- tion. The district system, moreover, is excessively costly in compari- son with the results obtained, because of the large proportionate cost of administration as compared with the township system, and it fre- quently results in inequalities among the different districts, both in the rates of taxation for school purposes and also in the character of the educational facilities provided under it. The Educational Commission of 1908 thoroughly investigated the district system, and recommended most emphatically that it be abol- ished, and that the township system be established in place of it, on the ground that this would open "the way to increased economy and efficiency in the educational work of the State." Among the advan- tages claimed for the township system are that it is less expensive, it reduces the number of school officials, it tends to the discontinuance of schools that have become too small to be operated efficiently, it pre- vents the unnecessary duplication of school facilities, and equalizes the burden of taxation. There are several hundred schools in Illinois having an average attendance of less than ten, and there seems to be no question that most if not all of these schools should either be abolished or consoli- dated with neighboring schools. The establishment of the township system will tend toward the consolidation of schools where such con- solidation is needed, but this will not be the necessary effect in all cases. It "does not mean the consolidation of schools but the unifica- tion of school management." The township would become the unit of taxation and administration regardless of whether the schools are consolidated or not. The Educational Commission favored the immediate abolition of the district system by statute, but, inasmuch as the district system has "cen long established and m^y still be in some few parts of the state •M lii! f 1 1 i 1 424 EFFICIENCY AND ECONOMY COMMITTEE. .3S'. EDUCATIONAL ADMINISTRATION^/^^^ 425 But the establishment of the township system should certainly be made explicitly permissive by local option. It is suggested therefore, that each county be authorized, on petition of a certain percentage of the voters of the county, to hold an election at which the people of each township may decide by majority vote whether they wish to abolish the school districts and establish the township as the unit of school organi- zation. Management of Local School Funds. The township school funds are now managed in large part by the township treasurer, and, in order to arrive at a conclusion regarding the question of the proper management of such funds it is necessary to bear in mind the position and legal functions of that officer. The township treasurer is elected biennially by the township board of trustees, and must be a resident of the township, but must not be a trustee or school director. He serves ex officio as clerk of the school trustees and keeps a record of their proceedings. He receives a compensation for his services, the amount of which is fixed, prior to his election, by the board of trustees and is paid out of the distributive fund. He is required to keep a separate account for each district in the township, and to make an annual report to the county superinten- dent showing the exact condition of the township funds. The township treasurer is required by law to keep the principal of the township fund loaned at interest. The rate of interest on such loans must be not less than four per cent and not more than seven per cent per annum, and no loan shall be made for less than one year nor more than five years. Such loans must be secured by mortgage on unencumbered real estate situated m the state, and worth at least fifty per cent more than the amount loaned, or else the fund must be invested in state, municipal, school or other bonds. According to the report of the Superintendent of Public Instruction for 1910-'12, the total compensation of all the township treasurers in the state for the fiscal year ending June 30, 1912, amounted to $175,- 096.57, an average of over $100 for each township treasurer, and an average expense for each county of $1,716. In Champaign County, where there are 33 townships, the total compensation of town- ship treasurers for the year mentioned was $3,610, or an average of $109 per treasurer. For the year ending June 30, 1913, the total compensation of township treasurers in Champaign County was $3,- 655, or an average of more than $110 per treasurer, the specific amounts varying from $50 to $300. . According to the report for the fiscal year ending June 30, 1910, the amount of the township funds invested in notes, bonds and real estate was $18,444,370. There was in addition to this a sum of $698,098 which also belonged to the principal of the township funds, but which remained uninvested in the form of cash on hand, although, under the law, it could be used for no other purpose than investment in bonds or real estate mortgages. On June 30, 1912, the principal of the township funds was $19,193,685. More than two-thirds of the township school funds are in the city of Chicago. Outside of Cook County, the aggregate principal of the township school funds on^une 30, 1912, was $5,594,602— an average of about $55,000 for each county, and less than $4,000 for each township. The above tacts with regard to the compensation of the township treasurers and the condition of the township funds throw some light on the degree of economy that might be attained through the concen- tration of the management of the township funds in the hands of the county treasurer. The transfer of tlie management of the school funds to this officer would not necessarily result in the abolition of the township treasurers. But their other duties as clerks to the township trustees, and the duties of the township trustees would be of such slight importance that these offices might well be abolished; and the duty of establishing or conspli4ating school., districts ,placed,qn the county superintendent-... ■ r — .r . .. • The result of this arrangement would be that the whole of the money now paid the township treasurers would be available as compensation for the county officer, to whom the management of the funds was transferred. But the whole of this amount would not be needed for this purpose. For example, in Champaign County, where the total annual compensation of township treasurers is $3,655, a salary of $2,000 would be ample to employ a deputy treasurer to give his whole time to these duties. This would result in a saving of over $1,600 a year in Champaign County alone. In smaller counties the additional work could probably be done by the county treasurer. ior ai small additional compensation. r,r(t fn/nt 1<^^-^^-*ni }o irri'^o^T-nofT ff':'fo:f^} There would, however, not only be a saving in money but also a gain in efficiency through such an arrangement. At present, the town-- ship treasurers are, of course, mainly engaged in other business and regard the duties of their office merely as a side issue. Indeed it ^J"f^/iently happens that the treasurers do not perform the duties at all, but appoint deputies to perform the actual work. The election of a treasurer often involves a contest between dififerent banks to become depositaries of school funds, and the deputy appointed by the treasurer u^'l^u^^^^ ^^ ^P^ ^° ^^ ^ ^^^^^ ^^ ^^^ successful bank. The reports Which the township treasurer^, are, under the law, required to submit annually on the 30th of June to the county superintendent are, in many cases, not promptly submitted ; and when, by dint of much exertion on the part of the county superintendent, they have been submitted, they are by no means in all cases models of neatness, fullness, or accuracy n the county superintendent, instead of having to deal with as many aitterent officers as .there are townships in the county, had to deal only with a smgle responsible officer, reports could be made and accounts Kept in more satisfactory form, and the conditions described, if not entirely remedied, would be greatly improved, -i. ^ . ^ . ..^ ,c,jii.^n> srh ^^ f^^ "^* appear that the transfer of fhe'rfiiriagemetit of the harH u- "" ^^ ^^^ county treasurer would result in any additional laraship to the teachers in the county. They would receive their war- ams by mail from the county treasurer of school money, and such warrants would doubtless continue to be cashed -byr local banks, of ^ven Dy merchants, as at present. .ooiwiil^^B i^'m ul > i;.,: . : i I ■f 426 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 427 The chief financial saving through the proposed arrangement would be not through the saving in the compensation of the township treasurers, but through the more efficient and economical handling of the school funds. It is well known in private business that a man with a large sum of money to invest can invest it to better advantage, with better security, and at a higher rate of interest than can a man with only one-twentieth as much money to invest. The same principle holds in the investment of school funds. The advantage to be derived from concentrating in the hands of the county treasurer the investment of the township funds of the county would be two-fold. In the first place, the money could be invested with better security or at a higher rate of interest. For example, the amount of the permanent town- ship fund in Champaign County, either invested or subject to invest- ment, amounted, at the last report, to about $196,000 or an average of less than $6,000 for each township. One man with the former amount can undoubtedly invest it to better advantage than 33 men with $6,000 each. Moreover, the single officer with the larger amount at his disposal would also have or acquire greater expertness in making such investments. In the second place, the concentration of the township funds in the hands of the county treasurer would result in leaving a smaller proportion of the whole fund uninvested at any one time. As already pointed out, of the total township fund in the state in 1910 amounting to $19,142,468, there was a sum of $698,098 which remained un- invested in the form of cash on hand. The loss to the state as a whole through non-receipt of interest from the amount thus remaining unin- vested would,, at the lowest legal rate, viz., four per cent amount to $28,000 annually. Not all of this money could be saved by the pro- posed centralization of management, but much of it doubtless could. An examination of the reports of the township treasurers of Cham- paign County to the county superintendent show numerous amounts, varying from one dollar up to several hundred dollars remaining unin- vested in the hands of the separate township treasurers. Inasmuch as the law prohibits the investment of this money at less than four per cent or in other than certain forms of securities, it is practically impossible to invest this money at all. If, however, these various small sums were placed in the hands of the county treasurer they would altogether amount to a sufficiently large sum to make it possible to invest it readily in accordance with the provisions of the law. In addition to the management of the township fund by the county treasurer, the district school money should also be centralized in the same office. In the larger counties this would probably necessitate adding to the county treasurer's office a deputy treasurer who should be given special charge of the school money, both of the townships and districts, and of the accounts maintained with each district in the county. He should be required to make a detailed report annually to the county superintendent as to the condition of the school money, and to execute a bond proportioned to the amount of money likely to be under his charge. In many counties, however, the additional <^"JJ5.^ could probably be performed by the county treasurer with some addi- tional clerical assistance. As an illustration of the smaller expense of administration in handling school funds in large amounts, the expense in Cook County may be compared with the rest of the state. In Cook County, while two-thirds of the township school funds and nearly half of the total expenditures for school purposes in the state are in the single school district of Chicago, the salaries of school treasurers are only about seven per cent of the total amount paid township school treasurers in the state. The school treasurers salaries in Cook County are less than one-tenth of one per cent of the principal of the township funds in that county, and a smaller proportion of the annual receipts and expenses for school purposes. In the rest of the state, the township treasurers salaries amount to more than three per cent of the principal of the township funds, and to more than half of one per cent of the annual receipts and expenses for school purposes. In a number of counties the township treasurers salaries are more than the income of the town- ship school funds. SPECIAL EDUCATIONAL INSTITUTIONS. University of Illinois. The State University is subject to the management and control of a board of trustees, composed of the Governor, the President of the State Board of Agriculture, and the Superintendent of Public Instruc- tion ex officio, and nine other trustees, of whom three are elected every two years, to serve for a six year term. The elective trustees are voted for by the voters of the state at the biennial general elections upon the same ballots with the state officers to be chosen at such elec- tions. The board of trustees appoints an executive committee of three out of their own number to manage and control the University and its affairs while the board is not in session. The board organizes itself into standing committees, each having supervision over some phase of the university affairs. The officers of the board, other than the presi- dent, are not necessarily members of the board. The board is required by law to make a biennial report to the Governor, and the Governor may make appointments to fill any vacancies which may occur on the board. Without in the least suggesting that the selection of the University trustees by popular vote has not secured many able men and women on the board it may still be questioned whether this is the best possible method of selection. If the selection were really made by the people as a whole, it would undoubtedly tend to increase the public interest and pride m the State University ; and, since the trustees do not need JO De experts, this method of selection would serve tolerably well. But tney are m reality not chosen by the whole people, but by those who select the candidates of the party which turns out to have the plurality 01 votes m the election. The popular election of the trustees tends to engthen the state ballot where it should be shortened, and contains a possibility, at least, of injecting political considerations where they Should not be allowed to enter. ^ tn^f ^^^'l^^ ^" *^^ method of selecting the members of the board of cont- A ^^^ ^^^^^ University should be considered. Even if ntmued as a body chosen by popular election, the time and m EFFICIENCY AND ECONOMY COMMlTrEE. ^^wdi^mMe-mmws^RMm?''^"'^ ! I ^ I ll li I I manner of election should be cTiariged. In Michigan the regents of the State University and the trustees of the state agricultural college are elected at the biennial April election for judges of the Supreme Court. The trustees of the University of Illinois might be elected at the time of the township and city elections in April; and provision made for non-partisan nominations for those positions. " In most of the states the board of trustees or managing board for tW state university is appointed by the Governor, usually with the consent of the senate ; and the adoption of this method should also be taken into consideration. , ^ , 3flJ \o Icqi-jiu- The Normal Schools.^^oi' IcrmnK '^dl >0 f>q '^no irt i . ^igrn o) lint: .ei^.'if-^ • ^,^-^,in carrymg out the constitutional mandate laid upon the General Assembly to "provide a thorough and efficient system pi free schools," it is desirable that provision should be made by the state not only for establishing schools and employing teachers, but also for establishing training schools where would-be-teachers may become proficient in the performance of their professional duties. With this object in view, the legislature has from time to time provided for the establishment of state normal scliools by special Acts, and also, by an Act of 1869, has authorized counties to exercise ^t|}^opt}qn,of,e^layi^ljipg ppifn^y normal schools. ., J. '.v»..; u:....w lo ,e30l?uit • ' ' ns ,ohrtlo x • County Normal Sdnools.^ol if;n y.lc .. i^u-. . ' '^"^'^."'^'^ ^"'''';By an Act of March'lS, 1869, provision was ma'd'e !or the establishment of county normal schools, through the action either of the county board of supervisors in counties under township organiza- tion, or by vote of the people in counties not under township organiza- tion. The Act was merely permissive, in character and little use ap- pears to have been made of it. Under it county normal schools were organized in Peoria, Bureau and Cook counties. The first two did not long exist; and in 1896 the Cook county school became the Chicago Normal School. No tangible connection or inter-relation appears to have existed between the county normal schools and the State Normal Schools. T '^flt >o r?ort'jol3v ?K[nqo<] vl <; * ^1'^^ There are now five State Normal Schools, the first of which was organized under an Act of February 18, 1857, and is said to be the oldest normal school in the Mississippi valley. In the Act, this school was called a "normal university," and the board of trustees having charge of it was called "The Board of Education of the State of Illinois," both of which appellations are somewhat misleading, in^ Southern Illinois Normal University was organized under an Act ot March 9, 1869, and subsequently by Acts of May 22, 1895, provision was made for the Northern and the Eastern Illinois Normal Schools. The last of the five, the Western Illinois Normal was established under an Act of April 24, 1899. . -'^'^^^ '^ ^-^^^n*;^' r :; :, ^^ Each of the five normal schools is under the control of a separate board of trustees, all of whom, with the exception of the Superintenci- ent of Public Instruction, who serves ex officio, are appointed by tn Governor, by and with^' the advice and consent of the Senate! l^ach board consists of six members, including the Superintendent of Public. Instruction, who serve for a period of four years, with the exception, of that of the Normal University, at Normal, which consists of four- teen members, serving for a six year term. The Acts providing for the establishment of the schools laid down in a general way the section of the state in which they were to be located, but the exact locations were determined by considerations of the greatest amount of private aid in lands and money to^ be secured through gifts of citizens in dif- ferent localities. - r . , Each board organizes by electing^a president and secretary' from- its own body, and by appointing a treasurer, who must not be a mem- ber of the board. Each board is required under the law to make to the Governor biennially a report of their actions and proceedings to- gether with a statement of their accounts, to be by him laid before the General Assembly. These boards are separate corporations, acting independently of each other, the only tangible connecting link between them being found in the fact that the Superintendent of Public In-j struction is ex officio a member of eachiV ^'l^'^'-'"' ^^*t'^^.'^'^ ''•"\ In general, the boards of trustees of the state normal schools are authorized to make all regulations necessary for the management of the respective institutions. More specifically they are empowered to appoint the instructional staff of their respective institutions, together with such other officers as may be required and also to fix their salaries and prescribe their duties. Such appointees may also be removed by the board, but only for proper cause, after having given ten days notice of the charges, and reasonable opportunity for defense. The boards are furthermore authorized to prescribe the text-books, apparatus, and furniture to be used in the schools. To such persons as have satis- factorily completed the course of studies, the boards are empowered to issue diplomas, on the recommendation of the faculty. .;^'^ ., y^ ^ The normal schools are for the most part dependent upon ftgisla-" tive appropriations for funds. The two older schools, located at Normal and Carbondale, also receive the interest derived from what are known as the College and Seminary funds. This interest, which amounts to about $13,000 annually, is divided equally between tnem, and is applied to defraying current expenses. The schools also receive varying Amounts from students fees, and the Southern ^ormal^ derives a small income from a farm which it owns, Ane principal items of current expense are salaries of the instruc- tional force, the wages of laborers, and the purchase of miscellaneous "Pplies. In the pUjTchase pf supplies each institution acts as a separate agency. '^^' (for/*7oi> o.^ vkjb 3 rfl^orini .tMUf. - ^ ov^^^txiaLy., Cni'i, * J -, -'T^f^ft> 9f'^ ^o >liow DJ! :roiJrAiifii7^q?. 3mo< ^fx^n] omments and Suggestions. .oM 9sit£m-vt,e/.. bn oJ hn'ii binov/ art- ^? ^^"^^^1 the State Normal Schools have not been very well ^rncuiated with the rest of the educational system of the State. This by th c ^" "° ^^^^^ measure to the lack of recognition given staffs ^^^^ *^ *^^ ^^^^ ^^ graduates of these institutions. Most withn ^'"^"^ ^^- ^^^^^^^s ^^ State Normal Schools teaching certificates out examination. For many years Illinois has not done so, with ! t li 430 EFFICIENCY AND ECONOMY COMMITTEE. the result that graduates of the normal schools of this State have found greater recognition in neighboring states than in Illinois. Pro- tests against this anomalous situation were frequently made without avail by presidents of the State normal schools, and, in 1908 the Edu- cational Commission recommended that "second grade county certifi- cates be issued without examination, with the approval of the county superintendent, to graduates of recognized normal schools," in order that "at least that much of a premium should be placed upon special preparation for teaching." These protests and arguments finally bore fruit in 1913 when the Forty-eighth General Assembly passed an Act providing that county superintendents may grant second and third grade elementary school certificates to graduates of recognized normal schools without examination. For the issuance of higher grade certifi- cates, however, examinations are still required of such graduates. It will be noticed that, while the issuance of diplomas by the boards. is dependent upon the recommendation of the faculty, no such condition rests^upon the board in the appointment of teachers, or in prescribing the text-books, apparatus, etc., to be used. It is doubt- less true that this division of authority between the board and the faculty as laid down in the law is modified in practice to the extent that the president of the school is consulted by the board in the appoint- ment of teachers and in the selection of text-books, etc. These func- tions are as much educational in character as the issuance of diplomas, and should therefore be subject to the control of the educational authorities of the institution. The personnel of the Board of Trustees of the normal schools has sometimes included professional educators, but generally speaking they are not primarily engaged in education as a profession, and are therefore better qualified to exercise general suprvision over the strictly educational functions of the institutions, rather than direct choice and control. It may be questioned whether the system of having a separate board of trustees for each normal school is the best possible arrangement. There seems to be no good reason for the existence of five separate boards when one board would serve the purpose with increased effic- iency and a less expenditure of effort. Other things being equal, a single board of control charged with the responsibility of governing all these schools would do so in an abler manner, and more econom- ically and efficiently than separate boards. A single board of control would not destroy the individuality of the schools ; nor extinguish any healthy rivalry which now exists among them, for such individuality and rivalry are largely created by the presidents and faculties of the different schools, who would still, for the most part at least, remain separate. A single board would, indeed, be able to develop more effec- tively some specialization in the work of the different schools, and it would tend to unify and systematize those parts of the management and administration of the schools, such as the purchase of supplies, where uniform methods or single control are effective. A single boara would also make possible the adoption of standard credit units, whicn would facilitate transfers of students from one school to another. Single boards of control over all the normal schools in the State have been established in a number of states, including Massachusetts, EDUCATIONAL ADMINISTRATION. 431 New Jersey, Maryland, Michigan, Minnesota, Kansas, Colorado, Cali- fornia and others. In most cases these boards also have some jurisdic- tion over other educational institutions and the State system of elemen- tary and secondary schools as well. As already indicated, such a unifi- cation of the educational system of the State tends to give dignity and strength to the State's management of its educational interests, and this is an advantage which such a State as Illinois, with its large edu- cational interests, should not longer remain without. ' It is therefore recommended that the control and management of the five normal schools be placed in the hands of a single board. Such a board for the normal schools should consist of not more than nine members, appointed by the Governor for overlapping terms. A State Board of Education. As previously suggested, a State Board of Education should be provided to exercise general supervision over the public school system of the State, and also over the State educational institutions. Such a board should be composed partly of educators and partly of persons engaged in other occupations; and it should be composed partly of ex officio members who have gained prominent positions in the educa- tional life of the State and partly of persons appointed by the political department of the State government. The State Superintendent of Public Instruction should be the executive officer of the board; and, if the State constitution can be amended, he should be appointed by the board. A State Board of Education such as is here proposed should not undertake the active supervision of the public school system or the direct management of the State educational institutions. It should rather form an advisory council for considering the broad questions of educational policy, and the interrelations between the different educa- tional agencies in the State. D. SUMMARY OF RECOMMENDATIONS. 1. That the following qualifications be prescribed for the State Superintendent of Public Instruction, viz., that he shall be a holder of the highest State certificate issued in Illinois, or of a certificate of equal grade issued in another state, and shall have had at least five years experience in teaching or supervising teaching. 2. That the appropriations for the expenses of the office of the Superintendent of Public Instruction be increased so as to make possi- ble a more highly specialized organization of the office. 3. That no one shall be eligible to hold the office of county super- intendent unless he shall be the holder of a teacher's certificate of the "iSliest grade which such officer is competent to issue. ^'^^^^ the county superintendent of schools be appointed quad- rennially by the county board from among the persons having the qualifications suggested, subject to the subsequent ratification of the •^tate Superintendent of Public Instruction; or if the appointment by \\ii 432 EFFICIENCY AND ECONOMY COMMITTEE. . 1 f^l the county board is not subject to the ratification of the State Super- intendent, the power of removing the county superintendent for cause shall be vested in the State Superintendent. »ii"oiJ/^:)jjirj lorbo li' jiiMiiSv That each county be authorized, on petition of a certain per- icentage of the voters of the county, to hold an election at which the people of each township may decide, by majority vote, whether they wish to abolish the school districts and establish the township as the unit of school organization. ioi Jou bkUK^nic ^dctr^Ur In!jfit6. That the five State normal schools be placed under the control or a single unpaid board. odOfi i£irrio/i 7. The board of trustees of the State University should be appointed ; or if it is continued as an elective body, the time and man- ner of election should be changed, so as to reduce the influence of party politics. . i\Wj4i^A A'** V>\\ 8. That there be establishedf a State Board of Education, which shall exercise general supervision over the public school system of the State and act as coordinating agency for all educational authorities. ii'jii iniiK/ili^JLii)^ l>ii;j'.f. :jii rtClOHTjq iO '{iJ"Ji>q bn£ 210lfi:>Iibi> ': ' ifiq lj:jc^iHiiUJ -j^ -uiiju;: r . /.'J TO vltTi. J 3^1 li. -J J o ^d bluoiU ji jiixj ;2ii • tidoo laxiJo su i .iic^oq JnDnimoiq banifig j.muu oilw ^i^dmorn ijjnioqqi; cjMoai^q io ^flT /' ^ "S f>tfi3 'jrf h^xfkH' I » . - -.rf ''^T''' f fnf*; rt:!>r'n'") '\1i.. hnn Hf n ] i'Jll L'U^- -id J '■- r t o ^i*' j vu'.tjc; jilduq odi lo noi^- • ' iti/jxiani knoilBoiib^ ^)i;i /ii'jG odj ^-Ai-V' ...\ bnr, ,^('>iloq fsn' 'onrt- fx\y.^uur\')7{^ -lo YjrAi/MU2 .0 kIt (_)fiilii fi'iqy ro<]ii (jfljoiir. fir b-^n- ; Mo >no on hiu /)r;?.;^r ot Jfi'ifoqrrio 'jdi ^nivjjd pjio^iiyq 3ffl ^noinjj !■ tiflj io iioltinfiilBi jn9upo;;;;^I;^ anoiiiy ^(d Jnaffijnloqqs i>dl 'ti lo ; noil'^uTJanf DilduS io Jii'jbriotniioqf/^i :Tn*jqMfi blf.od YlflUO'J '^ill yd )ii II. EDUCATIONAL ADMINISTRATION IN OTHER STATES AND COUNTRIES.^ A. EDUCATIONAL ORGANIZATION IN EUROPE. In each of the European governments there is a central depart- ment of Public Instruction, with large powers of supervision over elementary, secondary and higher education. Such departments are under the general direction of one of the Ministers; they are sub- divided into bureaus for each of the main branches of its work; and they act to a large extent through officials and boards established for geographical districts. The elementary and secondary schools are thus under a much greater degree of central control than* in the United States. The universities are also under the general supervision of the central department of public instruction; but each of these institutions has a considerable measure of local autonomy, vested in bodies repre- senting the faculties, such as the Senates in Prussia and the Uni- versity Councils in France. France. The head of the educational system in France is the Minister of Public Instruction, who is assisted by three directors, one for each of the three branches of education, primary, secondary and higher. There is also a fourth director of accounts. Each director is at the head of several bureaus with special functions; and there are staffs of assistants and inspectors. For educational purposes France is divided into seventeen dis- tricts, called academies. For each of these educational divisions there IS a chief educational official, the rector, — except in the Academy of ^Prepared by John A. Fairlie. REFERENCES ON EDUCATIONAL ORGANIZATIONS AND CENTRAL BOARDS OF CONTROL. ^"5.^^[?nroe, editor; Cyclopedia of Education, Vol. V. Articles on State Boards of Education, State Educational Organization, Superin- tendent of Schools, and Universities, American State. Keport of the U. S. Commissioner of Education, 1912. Tii„P' '^'t.*^^ Higher Education, by Kendrick C. Babcock, chief of the Division of nigher Education. ransactions and Proceedings of the National Association of State Universities. rm.f: y^" ^^^^' Central Boards of Control, Vol. 9, p. 62 (1911). Frank Strong: sn« X7 , ^^^^^ ^^ Higher Educational Institutions with special reference to Kan- of 'c.; r- ? (1911). p. 105. A. A. Murphree: Practical Politics in the Management Onnf ^^1 xF^^^^^s^ies, Vol. 10 (1912), p. 208. Discussion on Central Boards of Arth ' -^^ (1912), p. 225. til'hfS^l^^' '^^^ organization and administration of a State's Institutions by Re) l^ducation. 1912, 1914. ^'Eli\,nil<*^^®,^°*^®'^s**^y o^ Oklahoma, by Dr. K. C. Babcock, Inspector of Higher Npvvo T ?5* Institutions for the United States Bureau of Education, in University Renol; *^^"®^- Feb. 1. 1913. 4nnu , p Virginia Education Commission, 1912. Advfln«£°^'^.*^'.*^® President and Treasurer of the Carnegie Institution for the Auvancemeut of Teaching. Nos. 3, 4, 6, 7, 8. uj 434 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 435 if ' j <«i k t Paris, where the Minister has the title of rector, and a vice-rector is provided. The power of the rectors covers the three branches of educ- ation, but is limited so far as primary education is concerned, which is in charge of the inspector of the academy. In each academy there is also an academic counsel and a university council for the university in sixteen of the seventeen academies. The university council is composed of the rector, president, deans, directors and two professors of the faculty elected by their colleagues. This body decides disputes and questions of discipline, may pass stat- utes on the coordination of courses (recommended by the separate faculties), on dispensation from fees and on vacations; it may delib- erate on the establishment of courses and scientific degrees; and it may give advice on questions submitted by the Minister on the budget of the faculties, the creation of new chairs, on regulations, library and buildings. Professors in the universities are appointed by the Min- ister of Public Instruction. They must hold the doctorate in their respective faculties. In each department there is a departmental council, including the prefect, members of the council general of the department, teachers and inspectors. This is one of the most important organizations in the administration of French elementary education. It determines the number, nature and location of primary schools, the number of teachers, and supervises the curriculum. It has some control over the discipline of teachers, subject to an appeal to the Superior Council of Public Instruction. There is a normal school for boys and one for girls in most of the departments, each of which has at its head a director assisted by a bursar and an administrative council. Graduates of the normal schools are appointed as temporary teachers by the inspector of the academy, and after two years, on passing an examination, they receive permanent appointments by the prefect on the recommendation of the inspector of the academy. Secondary education is furnished by lycees and colleges. Each lycee has a head master (proviseur), assisted by a censeur, in charge of discipline, and a bursar, — all appointed by the Minister. There is also an administrative council, consisting of men of prominence, alumni, local authorities, the rector, the prefect, the mayor, and a pro- fessor of the lycee. Germany. The supreme direction of the internal organization of public edu- cation in Germany is in the hands of the state authorities. The high- est authorities in Prussia and Bavaria are Ministers of Public Worship and Education; in Baden the department of justice is in charge oi the same Minister as education; in Hesse, education falls under the Minister of the Interior. At the head of the Prussian system is the Minister, with an under- secretary. The ministry is divided into three departments: (1) ecclesi- astical affairs, (2) higher education and girls schools, and (3) elemen- tary schools, each with a director. There are also attached to the office from 30 to 35 special concillors and from 10 to 15 assistants, who are jurists or administrative ofHcials. In each province there is a Provincial School Board, which con- trols the inspection of higher schools (which is said to be lax) and has some supervision over local school administration. The intermediate authority for elementary education is a depart- ment of the district governmQnt (Re gierung) with district inspectors, under whom are local inspectors. The business administration of elementary schools is largely con- trolled by local authorities, but the appointment of every teacher must be confirmed by the state. All of the existing universities in Germany are state institutions, and they are generally maintained by the state. Universities in Prussia are subject to the Ministry of Public Wor- ship and Instruction, which appoints a representative, curator or chancellor, for each university, with charge of the external affairs. The internal administration is in the hands of the universities themselves through the Rector and Senate. The Senate consists either of several regular professors, or of annually changing commit- tees of this body. The rector who presides over the Senate is elected annually from the ranks of the regular professors, subject to approval by the state. Professors are civil servants with certain privileges. They are appointed by the government on the responsibility of the Ministry, as a rule respecting the suggestions of the faculty. Each university is organized in four faculties, which elect a dean, and are responsible for instruction in their field, suggest names for vacant chairs and for distributing courses to instructors, and for pro- motions. They also arrange the schedule of lectures, determine on the admission of private docents and are responsible for the conferment of academic degrees. f . '■ o 436 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. t w I i B. STATE EDUCATIONAL ADMINISTRATION.* In each state of the American Union the control of educational matters is divided between the state government and local authorities. The manner of this division varies greatly. At one extreme there are a few of the older states in which the control is vested almost exclus- ively in the local authorities, the state superintendent being restricted almost entirely to advisory functions. At the other extreme are sev- eral states in which the local authorities are little more than agents of the State department of education, the State authorities examining teachers for certification, prescribing the curriculum, and having extensive powers of appointment and removal over the local authori- ties themselves. Practically all of the states have a department of education with an executive head, known usually as the state superintendent of pub- lic instruction ; and most of the states have also a state board of edu- cation. The varying powers, relative importance and relations to each other of these two authorities show the absence of any general policy; but some tendencies towards a definite system may be noted in the recent reorganization in a few states. State Superintendent. A State Superintendent of Public Instruction, or an officer of the same character under another title, is found in each of the American states except Delaware, where the State Auditor issues blanks and col- lects statistics. In most states this officer is elected by popular vote; but in seven states he is appointed by the Governor and Senate, and in four states he is appointed by the State Board of Education. The term of office varies from one to six years, — in eighteen states it is two years and in twenty-one states four years. The salary is usually about $3,000 a year; but there are instances of salaries of $5,000, $7,500 and $10,000. In a few states such as New York and New Jersey, the com- missioner of education is at the head of a well organized state school department, with large powers. In a few other states as Massachusetts and Connecticut, the Secretary of the State Board of Education has little legal authority, but exercises much influence. In most states, the state superintendent has relatively little power and not much influence. He usually has nominal supervision over the public school system; he directs teachers examinations and issues teachers' certificates; he has charge of the distribution of state school funds and sometimes can withhold state grants; in many states he has quasi judicial powcis to hear and decide appeals from local school officers. The office is one of great potential power and usefulness; but the political basis of selection has usually prevented it from being occupied by educational leaders. •Sixth Annual Report, Carnegie Foundation (1911), p. 54; Cyclopedia of Kiuca- tlon: Articles on State Board of Education, State Educational Organization, ana Superintendents of Schools. State Boards of Education, All but eight states have state boards of education, or boards under other names which exercise some of the usual functions of state boards of education. The first body of this kind was the board of regents established in New York state in 1784. NOrth Carolina created an ex officio state educational board in 1825 ; Missouri established a state board of education in 1835; Massachusetts in 1837; Kentucky in 1838 and Connecticut in 1839. The earlier type of state board of education was usually composed of state officers, ex officio, created primarily to look after school funds and school lands. Such boards exist to day in some of the southern and western states. Most boards of education have some ex officio members. In about half the states the Governor is a member, and several states add other elective state officers. In several states the presidents of state educa- tional institutions or other professional educators are members. In most cases there are also other members, usually appointed by the Gov- ernor and Senate, in some cases by the state superintendent, and in Michigan elected by popular vote. These boards have from three to twelve members, boards of six or seven members being the most common. Sometimes each congress- ional district or each county has one member. The usual term is three to six years; but in New Jersey it is eight years and in New York eleven years. In some states where the state board of education is composed entirely of state officials ex officio, its powers and duties are very small. In other states, as in Massachusetts and Connecticut, the state boards have considerable power, and exercise considerable influence by the character of their reports. In several states, as New York, New Jer- sey, Indiana and Louisiana, the state boards of education have still larger powers. Frequently such boards have charge of state school funds ; in several i)tates they elect a secretary or commissioner, who acts as State Superintend ent ; and in some states, they annoint county superintendents and county boards of education and select text-books. In several states, they control the state normal schools; and in some states they act as boards of control for all the state educational insti- tutions. A number of states have one or more boards exercising functions which in other states are given to a single board of education, — e. g., state text-book commissions, examination boards, high school boards, and school land boards. . .J-^^ greatest concentration of authority in one board is probably in Oklahoma, where the State Board of Education has charge of the "management of nineteen state educational institutions, and also has Rencral supervision over the public school system of the state. In Aaabo the State Board of Education, established in 1913, has general supervision, government and control of all state educational insti- tutions and of the public schools. h 4 ' M jW4 ■ ■< 438 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 439 Plan of State Educational Organisation. The following plan for state educational organization is proposed by E. P. Cubberley, head of the Department of Education, Leland Stanford University, in a Cyclopedia of Education : — (1) There should be a state board of education .appointed by the Gov- ernor for reasonably long terms. A board of seven or nine is both small and large enough, and terms should be arranged that but one appointment is made each year. There is perhaps something to gain if appointments are submitted to the Senate for approval. (2) The members of the board should be paid all necessary travelling expenses in attending meetings, but little or no salary. (3) One of the chief functions of this state board should be to select the state superintendent or commissioner of education. There should be no residence or political restrictions, and the salary should be large enough to command the best men available. (4) The board should also appoint its own secretary and business manager. (5) On the recommendation of the superintendent or commissioner of education, the board should appoint for definite terms assistant super- intendents or commissioners and special agents or inspectors. (6) The state board of education should be primarily a body for the appropriation of funds and for the creation or approval of educational policies,^the execution of policies determined upon being intrusted to the executive officers. (7) Through its executive officers, the board should have general supervision and inspection of all forms of public education in the state, including the educational departments of all state charitable and reform- atory institutions, and the right of inspection of all forms of extra state educational effort. (8) Through its executive officers, the board should provide for the classification and standardization of all schools and colleges in the state, with power to take action to promote the organization or efficiency of the ^ educational system. To this end its powers and duties should include: the regulation of conditions of admission to the normal schools and their courses of study; the certification of teachers; the accrediting of normal schools and colleges within and without the state ; and the interstate recog- nition of diplomas and certificates; the setting of standards, possibly in cooperation with the state board of health, for school buildings, sanitar}' appliances ,and health supervision ; the general enforcement of the school laws of the state; the enforcement of the use of uniform blanks for all records and reports by both state and non-state schools ; the apportionment of all school funds and the making of specific appropriations for special purposes within the limits prescribed by law ; and the making of an annual report to the Governor, and to suggest needed legislation. (9) The state educational office in any of the more important states should include at least the following divisions, with division heads : 1. Business and financial affairs. 2. Administrative and statistical division. 3. Secondary and higher education. 4. Elementary education. 5. Rural education. 6. Vocational education. 7. Education and training of teachers. 8. Examination division. 9. Legal division. 10. Educational extension. 11. School and public libraries. 12. Health and development. 7., • 13. Attendance and child conservation. Managing Boards of State Universities. The management and control of state universities is usually vested in a board of regents or trustees, composed of persons appointed by the Governor and Senate, with the addition — in many states — of certain ex officio members. This method of selection is used for thirty-three institutions. In ten states the managing board for the state university has also control of other state educational institutions, — low^a, Kansas, Okla- homa, South Dakota, Montana, Idaho, West Virginia, Georgia, Florida and Mississippi. In all the other states, the university is in charge of a board separate from those controlling other institutions. In five states, the university trustees or regents are elected by pop- ular vote,— Michigan, Illinois, Nebraska, Colorado and Nevada. In two states— North and South Carolina,— the university trustees are selected by the legislature; and in Vermont nine of the twenty trustees are selected in this way. In three institutions, trustees are selected partly by cooptation, — Alabama (subject to confirmation by the Senate), Indiana (five of eight) and Vermont (nine of twenty). Three members of the Indi- ana State University Board are elected by the alumni. In seventeen institutions there are no ex oflficio members. In the other cases, the number of such members range from one to seven; and in all cases they form a small part of the total number. The number of members on such University boards range from five to eighty-three. In thirty-four states the numbers range from five to twelve ; in eleven states from thirteen to twenty-seven ; and North Carolina has the largest number, eight-three.* The terms range from three years to life. The shortest term is three years, for the Indiana University board. In eleven states the term is f oiir years ; in twenty states it is six years ; in eight states from seven to sixteen years; and in two cases members are appointed for In most states the members of these boards receive no compen- sation but are allowed expenses. In some states they receive a per aiem allowance, and in a few states where one board has charge of a number of institutions, they receive salaries ranging from $1 000 a year in South Dakota and West Virginia to $3,500 in Kansas. * 5 members 6 members 7 members 8 members 9 members 11 members 12 members in 6 states In 3 states in 6 states in 3 states in 4 states il^ 4 states in 3 states 440 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 441 MANAGING BOARDS OF STATE UNIVERSITIES. i» 'ii VIh Number of Members State Iowa . Kansas Oklahoma . . . South Dakota. Montana Idaho Florida Georgia Mississippi .... West Virginia.. Arizona Arkansas California . . . . Kentucky Louisiana Maine Minnesota Missouri New Mexico... North Dakota. Ohio St. Univ.. Ohio Univ Miami Oregon Purdue Tennessee . . . . Texas Utah Virginia Washington . . . Wisconsin • • • • Wyoming Name of Board State Board of Education State Board of Admin- istration State Board of Education Regents of Education... State Board of Education Board of Education Board of Control of State Educational In- stitutions Board of Trustees Board of Trustees State Board bf Regents. State Board of Control. Board of Regents Board of Trustees Board of Regents Board of Trustees Board of Supervisors... Board of Trustees Board of Regents Board of Curators Board of Regents Board of Trustees Board of Trustees Board of Trustees Board of Trustees Board of Regents Board of Trustees Board of Trustees Board of Regents Board of Regents Rector and Visitors, Etc. Board of Regents Regents of the Uni- versity Board of Trustees 7 1 5 11 3 5 8 5 25 10 5 6 7 23 18 15 8 12 9 7 5 7 21 27 14 9 16 8 13 11 7 15 11 N. Carolina. ...Board of Trustees 83 S. Carolina. . , . Board of Trustees 11 Illinois Board of Trustees 12 Michigan Board of Regents 8 Nebraska Board of Regents 6 Colorado Board of Regents 7 Nevada Board of Regents 5 Alabama Board of Trustees 12 Indiana Board of Trustees 8 f 20 Vermont Board of Trustees. . . . j 2 1 7 3 3 4 2 2 3 4 2 2 2 3 4 3 1 S^ How Chosen 13 « O 3 • o g- y E rt H Wii " 9 9 6 Governor and Senate 3 3 4 Governor and Senate 6 5 8 5 5 8 17 2 8 1 4 6 Governor and Senate 6 Governor and Senate 4 Governor and Senate 6 Governor and Senate 4 Governor 8 Governor and Senate 6 Governor and Senate 4 Governor and Senate 4 6 16 15 12 8 8 9 5 5 7 19 27 11 9 12 .8 2 11 9 7 13 9 80 7 9 8 6 6 5 4 Governor 6 Governor 16 Governor 6 Governor 4 Governor 6 Governor 6 Governor 6 Governor 4 Governor 4 Governor 7 Governor Life Governor 9 Governor 12 Governor 6 Governor 12 Governor Governor 4 Governor 4 Governor 6 Governor and Senate and Senate and Senate and Senate and Senate and Senate and Senate and Senati and Senate and Senate and Senate and Senate and Senate and Senate and Senate and Senate and Senate and Senate and Council and Senate 6 Governor and Senate 6 Governor and Senate 4 Legislature 6 Legislature 6 Elected 8 Elected 6 Elected 6 Elected 4 Elected 2 10 12 Co-opted 8 3 5 by St. 3 by Alumni 2 9 6 ^Legislature 9 Life J Co-opted C. CENTRAL BOARDS OF CONTROL FOR STATE EDUCATIONAL INSTITUTIONS. In establishing institutions for higher education many states have following the policy of providing a number of institutions, distributed in different parts of the state, and each independent in its organization and management. Thus, apart from state normal schools, nine states maintain three or more state supported and state controlled educational institutions, and twelve states have two such institutions, — a state uni- versity and an agricultural and mechanical college. In seven states ai)propriations are made to privately endowed institutions. On the other hand, in seventeen states, the state university comprises all the higher educational work, except that done in the normal schools ; and in nine states there is a state agricultural and mechanical college but no state university. It is the general agreement of wise and progressive leaders of edu- cation in the states at the present time that there is a distinct advan- tage in combining in one institution the colleges of liberal arts and sci- ences and all the professional schools, including colleges of engineer- ing and agriculture, thus forming a single university for a given state. The distribution and subdivision of the work of higher education has led in most cases to waste, unnecessary duplication, undesirable com- petition for students and appropriations, insufficient financial support, confusion as to the standards which each institution should maintain, the preponderance of local opinion, and consequent inadequacy of educational requirements. The waste due to duplication of faculty, equipment and buildings, is, however, sometimes over-estimated. There is no loss of economy or of efficiency in carrying on in different places the work of the first two years of a liberal arts course or of courses preliminary to tech- nological work, provided that the faculty and equipment are fully utilized. It is when specialized and technological work is begun, when the services of high salaried men and enormously expensive equipment are required that the waste and inefficiency of plant inevitably appears. The need for re-adjustment is very real; and recent changes in a number of states show the growing opinion that waste, overlapping and unwholesome competition should cease. In states where two or more institutions have been firmly established, the possibility of physi- cal consolidation is often too remote for practical consideration. But in some states, as in Michigan and Indiana — the existing institutions have voluntarily worked out a basis of cooperation and division of labor ; in others efforts at organized cooperation are under way ; while in several states administrative consolidation of several institutions under a central board of control has been established. South Dakota Regents of Education. The first distinct attempt at centralization in the control of state educational institutions of different types was in South Dakota. Under jaws of 1896 and 1903, a board of regents of education, consisting of nve members, appointed by the Governor and Senate, for terms of six years, was placed in control of the state university, the state college of agriculture and mechanic arts, the school of mines and three normal ^ H^ ills: H 442 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 443 II, % ) I li schools. The members of this board receive $1,000 each per annum. To exclude local influence, it is also provided that none of the counties in which the state institutions are located can be represented upon leg- islative appropriation committees. Little seems to have been accomplished in the way of readjust- ment and delimitation of functions among the six institutions; and some difficulties appear to have developed.^ Minnesota Financial Control. In Minnesota the state university, which includes the agricultural college, is in charge of a board of regents, consisting of four ex officio members and eight members appointed by the Governor and Senate for terms of six years. A separate board of nine members has juris- diction over all the normal schools of the state. In 1901 a state board of control was established, primarily to manage the charitable and penal institutions ; but the law also gave this board financial control over the educational institutions, without abol- ishing the educational boards. For two years the board of control did not attempt to supervise the university ; and in 1903 an unsuccess- ful attempt was made to release it from the dual control. After two years in which the regents of the university were subject to the finan- cial supervision of the board of control, the law was amended in 1905, so as to restore the full power of the regents over the management of the university, except in placing insurance, the purchase of fuel and the erection of buildings. Central and Local Boards in Georgia. In Georgia the general control of the higher educational insti- tutions rests with the trustees of the University of Georgia; while the immediate government of the institutions situated elsewhere than at Athens is in charge of separate boards or commissions. The university trustees consist of eight ex officio members and seventeen members appointed by the Governor with the con- sent of the Senate. One member is appointed from each congressional district and four from the state at large and two at Athens. Their terms of office are for eight years, four trustees being appointed every two years. The compensation is four dollars per diem and ex- penses. The ex officio members are the Governor, George Foster Peabody, and the chairmen or presidents of the local boards for the school of technology, the normal and industrial college, the industrial college for colored youths, the North Georgia agricultural college, the state normal school and the college of agriculture. The university proper and college of agriculture are at Athens; each of the other six institutions (which are made branches of the university) are located in different places, as are also the agricultural experiment station and the medical college. The size of the various separate boards, the terms of office and mode of appointment differ. In each there is an executive committee, sometimes composed of local trustees and sometimes of non-residnts. '?eport of U. S. Commissioner of Education 1912, p. 88: C. R. Van Hise, Central Boards of Control. The chancellor of the University has stated that "the method of trovernment involves many difficulties, and that the cooperation be- tween the different boards has resulted merely in making the relations between the general board and the separate boards more intimate. Florida Board of Control. Prior to 1905 there were six institutions for higher education in Florida, supported at least in part by the state. All of these colleges were of low grade. In 1905 a board of control was created, consisting of five members, appointed by the Governor for terms of four years. Members must be from different sections of the state, and no appoint- ment from any county in which any of the institutions are located. The members serve without compensation except expenses. This board has control of all the state institutions for higher edu- cation, comprising — after reorganization: — The State University, The Agricultural and Mechanical College for Negroes, The Florida State College for Women, The Normal Colored School, and The Institution for the Blind, Deaf and Dumb. Under the law creating the board of control, it is also provided that it "shall act in conjunction with, but at all times under and sub- ject to the control and supervision of the State Board of Education." The latter board consists of the Governor, the Secretary of State, the Attorney-General, the State Treasurer, and the State Superintendent of Public Instruction; and has jurisdiction over the general educa- tional interests of the state. Following the establishment of this central board of control, several of the weak and low grade colleges were abolished and the State University was enlarged and strengthened. The State Board of Education, however, refused to confirm the re-election of the presi- dent of the university; and on his resignation a new president was selected. The Florida board has seemed to work more effectively and har- moniously than the boards in any other state having such central boards. The president of the State University reports that under no circumstances would the institutions "go back to independent boards and their scrambles at each meeting of the legislature for support for their respective institutions." He states further that the new law has "unified our higher educational scheme. It has resulted in more per- fect and better understood relation between the high schools and the colleges, and our entire educational system has been quickened and stimulated." He recognizes, however, the possibility of trouble aris- ing from friction between the two boards.® IVest Virginia Dual Control. In 1909, WesT Virginia reorganized the management of its edu- cational, charitable and penal institutions. A state board of regents, including the state superintendent of public instruction and four mem- *Report of U. S. Commissioner of Education, 1912, p. 89. I 444 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 445 Mr «] 11. '^ I \ bers appointed by the Governor, for terms of four years (not more than three from one political party) has control in educational matters •of the state university, including the agricultural college, two branch preparatory schools, six normal schools and two colored institutes Each of the members of this board receives $1,000 a year and expenses. At the same time a board of control of three members, appointed by the Governor and Senate, at salaries of $5,000 a year which has full control of the charitable and penal institutions, also has "control of the financial and business affairs" of the educational institutions The two boards meet together on request of the board of control. This dual system seems to have operated harmoniously ; and the State superintendent has said that "there has been a great saving to the state; while the institutions are in a more prosperous condition than they ever were before."^ Iowa State Board of Education. Before 1909, each of the state educational institutions in Iowa was managed by a separate board,— a board of regents for the state uni- versity, a board of trustees for the state college of agriculture and mechanic arts, and a board of trustees for the state teachers college. Under this system, the overlapping and duplication of work in the higher educational institutions was perhaps larger than in any other state. By Act of 1909, these separate boards were abolished, and there was established a State Board of Education to have charge of the three institutions named and also of the college for the blind, which had been under the management of the Board of Control of charitable institutions. The Board of Education is composed of nine members appointed by the Governor, with the consent of two-thirds of the Senate in executive session after reference to a committee. After the first appointments, members will serve for terms of six years; and one- third will retire every second year. Any member may be removed (during a session of the General Assembly) or suspended (when the General Assembly is not in session) for malfeasance in office, or for any cause that renders him ineligible to appointment, or incapable or unfit to discharge the duties of the office. Each member of the board is allowed seven dollars a day, not exceeding 60 days in any year, for each day engaged in official duties, and mileage. This board has power to elect a president from their number, a president and treasurer for each institution, and teachers, officers and employes; to make rules and regulations for the government of said schools; to manage and control their property, and to direct the expenditures of appropriations and other moneys. A finance committee of three members must be appointed by the board of education from outside of its membership. Members of the finance committee are required to devote their entire time to the work of the institutions, and each receives a salary of $3,500 a year and necessary traveling expenses. *C. R. Van Hise, Central Boards of Control. In addition to the finance committee, the board has two standing committees, — a faculty committee, and a building and business com- mittee, each composed of five members. The board also appoints an inspector of secondary schools, who has two assistants, to visit and inspect high school, recommending those to be placed on the accredited list, and prepares bulletins relating to secondary education. The board has no jurisdiction or supervision over elementary edu- cation. The Secretary of the Board of Education states that it has pro- moted the general welfare of the various colleges, erecting many new buildings and strengthening several departments, especially the college of medicine at Iowa City. At the same time, he states that the Board has experienced some difficulty in preventing unnecessary duplications in the work of the several institutions. In October 1912, the Iowa State Board of Education announced a plan for important readjustments in the functions of the different institutions, so as to eliminate duplication. This led to vigorous oppo- sition, not only in the institutions but also at the session of the General Assembly In 1913. Some of the changes proposed were In the direc- tion of a better co-ordination of educational work ; but part of the plan seems to have been dictated by political rather than educational con- siderations. In view of probable legislative action the board of edu- cation rescinded their action. It can hardly be said that this experiment In Iowa has been wholly or permanently successful. Opinion in the state as to the new system has been sharply divided. Montana Board of Education: In 1909, all the higher educational Institutions In Montana were placed under the general control and supervision of a state board of education. This board consists of eleven members, — the Governor, State Superintendent and Attorney-General, ex officio, and eight mem- bers appointed by the Governor, with the advice and consent of the Senate, for terms of four years. There is no compensation for serv- ices, but traveling expenses are allowed. Regular meetings are to be ^eld semi-annually. This board was given jurisdiction over the state university, the college of agriculture, the school of mines, the state normal college. and also over the state orphans' home, the school for the deaf and blind and the state reform school, including the ordinary powers of trustees with reference to appointments of the instructional force and the control of educational policies; but limited by local executive boards at each institution. Each executive board consists of the president of the institution and two other members appointed by the Governor, with the consent 0^ the State Board of Education, for terms of four years. At least two members must reside in the county where the institution is located; and in fact all these boards are strictly local. I "-1 Hr I i ^ti 446 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 447 ■ A c. i^l executive boards have subordinate powers conferred and defined by the State Board of Education. The appointed members receive $5 per day, not to exceed $125 in one year, and expenses. In financial matters both the local executive boards and the State Board of Education have been subject to the state board of examiners Ihe latter board consists of the Governor, Secretary of State and Attorney-General, and has general control of state finances, lettin? all contracts, approving all bonds and auditing claims on money granted by the state ; but it may confer upon the local executive boards financial powers for current expenses, and may not limit the power of the execu- tive boards to make contracts and expenditures for a single purpose not to exceed «p^^u. In discussing this complex system, President Pritchett of the Car- negie Institution for the advancement of teaching has noted that the Governor and Attorney-General can in large measure control the affairs of all these institutions. These two officials form a majority of the state board of examiners, and are also members of the State Board of Education. On the State Board of Education the Governor is expected to appoint one representative of each educational town When the two elective officials sit with the local representatives "the opportunities, at least, for political exchanges of favors are obvious." A board of trustees chosen partly on political and local grounds "deal- ing with institutions of diverse types is clearly impossible from the standpoint of eflFective institutional administration." In June 1912, the State Board of Education, after holding inquir- ies m the president's absence and after an executive session abruptly dismissed the president of the state university. On this action, Presi- dent Pritchett comments: "Whatever may have been the grounds for a sudden dismissal of the president, the method by which it was carried out was one calculated to discredit both the board and the state."« By an Act of 1913 the State University, at Missoula; the College of Agriculture and Mechanic Arts, at Boymen ; the School of Miners, at Butte, and the Normal School, at Dillon, were constituted as the University of Montana, under the control and supervision of the State Board of Education. The State Board appoints a Chancellor of the University, and a president and faculty for each institution ; and is to prevent unncessary duplication and to make recommendations to the legislature as to the needs of each institution. The executive boards at each institution are continued. Under the authority to prevent duplication of courses, the State Board has discontinued the engineering work at the University, at Missoula, transferring this to the College of Agriculture. President Pritchett of the Carnegie Foundation considers that this arrangemr nt for the concentration of engineering work is regrettable, for its effect both on engineering and agricultural education.® ■Seventh Annual Report of the President and Treasurer of the Carnegie Instltii- "^°..ii9''.*9® advancement of teaching, pp. 148-149. •Eighth Annual Report, pp. 68-69. Mississippi Central Board. In 1910 there was created in Mississippi a board of trustees, of eicrht members appointed by the Governor, which superseded the separate boards for the agricultural and mechanical college, the indus- trial institute and college, and the Alcorn agricultural college. Two trustees were to be from each supreme court district, one from the state at large for terms of six years, and one for the State University from DeSoto County for a term of four years. One trustee should be a farmer, one a lawyer, and one a builder, architect or factory man. The compensation was five dollars a day and expenses. In 1912 this board was abolished, and a new board created in its place. • Oklahoma State Board of Education. In 1911, a State Board of Education was established in Oklahoma, consisting of the Superintendent of Public Instruction and six members appointed by the Governor and Senate for terms of six years. The State Superintendent, who is president of the board, has a salary of $2,500 a year; the other members receive six dollars a day for actual service. This board has supervision over the common school system, and acts as a text book commission ; and in addition has control of the State University, two university preparatory schools, the school of mines, the industrial institute and college for girls, six normal colleges, the agricultural and normal university for negroes, four schools for defectives (blind, deaf and feeble minded), the state school for orphan children, the colored orphanage and the reform school — 19 institutions. The agricultural and mechanical college, however, is not under the board of education; but under the constitution remains in charge of the state board of agriculture. Almost immediately after its organization the board of education made sweeping changes in the institutions under its control. New heads were appointed to six institutions ; and a large proportion of the members of their faculties were removed or transferred.^^ On account of a disagreement between the board and the Governor, in regard to text books and appointments, three members were removed ; and, as the Senate refused to confirm the new appointees, a deadlock lasted for some months. It seems clear that the board of education was not out of politics. On the other hand, the new president of the state uni- versity accepted the position with definite pledges on the part of the hoard not to interfere with the management." f(ansas State Board of Administration. In 1911 the legislature of Kansas passed a bill to establish a single board of control in place of separate boards over the state university, the state agricultural college and the state normal schools. This board was to consist of three members, to be paid salaries of $2,500 each, ^nd was to elect an educational expert to act as secretary at the same salary. Jijjeport of U. S. Commissioner of Education, 1912, pp. 91-92. Of P.I. P.?^^ ^^ K- C. Babcock, Inspector of Higher Education for the U. S. Bureau i^uucation, in the University News Letter, Feb. 1, 1913. !l||i I i 448 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 449 Before acting on this bill Governor Stubbs asked the advice bv telegraph, of a large number of university administrators; and on their advice he disapproved the bill. Before taking this action, however lie made arrangements for the voluntary co-operation of the three existing boards, which agreed to meet together with the Governor and the State Supenntendent of Public Instruction, as a commission on higher education. Committees on efficiency, co-ordination of work and business management were appointed. l'hi^ experiment did not result in any important improvements- and at the legislative session of 1913 an act was passed similar to the bill of two years before. This has established a State Board of Admin- istration of three members, appointed by the Governor and Senate for terms of four years, to govern the state university, the agricultural college, the state normal schools and the schools for the deaf and the blind Not more than one member may be an alumnus of any one of the educational institutions, and not more than one member may be ^T^ cn?^ ^"^ congressional district. Each member receives a salarv ot i^6,bi)0 a year. The board elects its own president, and elects as secretary an experienced educator. The former boards of regents for each institution are abolished; and the state board of administration has lull power to elect an executive head and a treasurer for each institution and to appoint the instructional force, officers and employes and hx their compensation, to make rules and regulations for the administration of the schools, to manage thier property, and to direct expenditures. r- tr j> President Pritchett, of the Carnegie Foundation, has said : "It is too early at this time to attempt any intelligent criticism of the work of this board. " Idaho State Board of Education. By Act of 1913 there was created a State Board of Education and lioard of Regents of the University of Idaho, for the general super- vision, government and control of all state educational institutions and also of the public schools of the state. This consists of the State superintendent and five members appointed by the Governor, for five year terms, one member to be appointed each year.^^ jj^^ Governor may remove any member guilty of gross immorality, malfeasance in ^^n^u^ incompetency; but no removal for personal or political reasons shall be valid without the consent of at least two-thirds of the mem- j^J^txi Senate. The members are to receive necessary expenses and $100 a year. ^ This Board appoints a Commissioner of Education, who shall be chosen for merit and special fitness, and who may be dismissed for cause by a two-thirds vote of the State Board of Regents. It has power to make rules and regulations, shall determine policies, and constitu tes a final court of appeal in all educational controversies. iaSlf ''«^ Annual Report, p. 72. tion to oonJ?«f Constitution of Idaho formerly provided for a State Board of Eduon- Attornev.Ge*^t«? n^ Superintendent of Public Instruction. Secretary of State and provldld that "?L J?Z^K^ amendment submitted by the legislature in 1911, it was by law " membership, powers and duties (of the Board) shall be prescribe*! Acting through its executive officers, it shall : Exercise supervision and inspection over all departments of public edu- cation supported in whole or in part by the state, enforce the school laws, study educational conditions and approve and recommend changes in the laws. Prepare a financial budget for all state educational institutions; super- vise, direct and control expenditures and plans for improvements and build- ings. Classify, standarize and define the limits of all instruction in the State Educational Institutions, prevent wasteful duplication, prescribe the minimum course of study for the public schools and regulate the adoption of text books. Supervise, govern and direct the work of the state summer normal schools and teachers' institutes. Supervise, govern and control the certification of teachers in accordance with law. Supervise, govern and direct the State Library Commission. In co-operation with other departments shall see that the rules relating to schools, health, compulsory education and child labor are enforced. In co-operation with the State Board of Health shall standardize sani- tary appliances and school buildings, furniture and supplies; and provide for an efficient system of health supervision in all public schools. Adopt a system of standardized reports for all state institutions and public schools. The State institutions included in this system are the University of Idaho, two State Normal Schools, an Academy, Industrial Training School and School for the Deaf. President Pritchett, of the Carnegie Foundation, makes the fol- lowing comment on this law :^* "This is a fairly close approximation to the European Ministry of Education Much can be said in favor of the Idaho plan The especial difficulty which will confront the new plan is the difficulty of personnel. Present and prospective American college presidents are so little accustomed to think of their office as subordinate to any other executive, that accommodation to the superior authority of the Commissioner of Educaion will not be altogether easy On the other hand the Commission of Education will need to be mindful that his office is concerned with large problems of government and not with the details of administration in any institution." Oregon Board of Higher Curricula. As a means of avoiding and eliminating unncessary duplication of work in the higher educational institutions of the state, the Oregon legislature provided in 1909 *for a "board of higher curricula," con- sisting of five members, appointed by the Governor, the term of one member expiring each year. The members receive no salaries, but are paid actual expenses. Its powers are thus defined: The exclusive purpose and object of the board of higher curricula shall be to determine what courses of study or departments, if any, shall be duplicated in the higher institutions of Oregon ; to determine and define the courses of study in departments to be offered and conducted in each insti- tution. ^*Eighth Annual Report, p. 70. )j»> H 450 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 451 In April, 1910, the board issued certain orders limiting certain departments of mstruction to the state university and others to the agri- cultural college, while allowing some departments to continue in both institutions." Types of Central Boards. The central boards of control of educational institutions estab- lished in this country exhibit the usual variety in American political institutions,— no two states having precisely the same organization. Nevertheless the several central boards may be roughly grouped in three classes, as follows : 1. States with a single board for all classes of state educational insti- tutions, controlling both educational and financial administration,— South Dakota, Iowa Mississippi, Oklahoma, Kansas and Idaho. In South Dakota and Kansas the members of these boards receive moderate salaries ; in the other states ,they receive a per diem allowance while in Iowa there is also a hnance committee, whose members receive a salary. 2. States with a central educational board, subject, however to the siipervision and control of another state board, usually in financial matters Ihis system is established in Florida, West Virginia and Montana (where there a so are local executive boards for each institution), and also existed lor a short time in Minnesota. 3. States with a central board of control, and also local boards for each institution. Georgia has this arrangement, and Montana unites this with the financial control of the state board of examiners. The dual or triple system management seems likely to lead to serious friction between the different boards. Yet it is in states with the dual system— Florida and West Virginia— that the most favorable reports are received. At tlie same time many difficulties are reported from Georgia; the system in Minnesota was abandoned after a few years; and the situation in Montana— with three sets of authorities- seems to be worst of all. Of the five states, with a single central board, for educational insti- tutions of different grades and types that of Iowa has been most active in attempting to re-organize the work of the state institutions; but has met with serious opposition. None of the other central boards in this group seem to have made any marked improvement in educational con- ditions, while in Mississippi and Oklahoma political factors seem to have been at work. In several of these states the state institutions for higher education have been united with institutions for the defective class. President Pritchett, of the Carnegie Foundation, considers this plan of doubtful wisdom.^® D. CENTRAL NORMAL SCHOOL BOARDS. In most of the more important states where a number of state normal schools have been established, steps have been taken to place the several schools under a common management. In Massachusetts, Connecticut, New Jersey, Maryland and Texas, the state normal schools are under the direct control of the State Board of Education; J-SfP.?/.-* ^} ^' ^' Commissioner of Education, 1012, p. 87. I'Blghth Annual Report, p. 73. . y. o.. in Michigan an elected State Board of Education is primarily a board of trustees for the state normal schools; in Wisconsin and Minnesota all of the normal schools are under the control of a single board of regents or directors. In states where all the state educational insti- tutions have been placed under one board, this board has control over the normal schools, — as in South Dakota, Montana, Iowa, Kansas, Oklahoma, West Virginia, and Florida. In New York, while local boards- are continued for each normal school, these are appointed by and are under the supervision of the Commissioner of Education ; and in Pennsylvania the State Superintendent of Public Instruction ap- points trustees on the part of the state as members of the local normal school boards. Separate local boards for each school without central supervision are still found in Illinois, Missouri and California. New York. Each of the twelve state normal schools in New York is under the control of a local board of managers appointed by the State Commis- sioner of Ediication. These local boards have immediate supervision and management of the schools subject to the general supervision of the Commissioner of Education. More specifically they have charge of the buildings and property, and with the approval of the commissioner have power to prescribe the course of instruction and make all neces- s.'/ry rules for the management of the school. The Commissioner of Education determines the number of teachers for each school and their wages, and the employment of teachers is subject to his approval. If any local board neglects its duties, the Commissioner of Education is authorized to act in its place. The state normal college at Albany is under the supervision, man- agement and government of the Commissioner of Education and the regents of the university. Pennsylvania. The thirteen normal schools in Pennsylvania were originally estab- lished as private institutions; and each has been managed by a local board of eighteen trustees, nine appointed by the contributors or stock- holders, and nine by the State Superintendent of Public Instruction. The state superintendent is also a member of the state board of normal school examiners, and may prepare questions for the examinations. Under the revised school law of 1911, the newly established State Board of Education is authorized to purchase any of the normal schools; and any schools so acquired for the state are to be managed by a board of nine trustees, appointed and removable by the State Board of Education ; and the latter board is authorized to prescribe rules and regulations for the management and control of any such normal school. ^Massachusetts. . The general management of the ten state normal schools is vested jn the Board of Education, and all money appropriated for their main- tenance is expended under its direction. The Board of Education con- \m 1 i 452 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 453 ^m f^lf' h ■;;. sists of the Governor and Lieutenant Governor and eight other per- sons, one appointed each year by the Governor and council for a term of eight years. Connecticut. The State Board of Education has charge of the state normal schools, expending the funds for their support, appointing and remov- ing teachers and making rules for their management. New Jersey. The State Board of Education has the control and care of the buildings and grounds owned and used by the State normal schools and of the funds for their support ; appoints and removes principals, teachers and other employes and fixes their salaries; purchases and furnishes text books, apparatus and supplies; prescribes courses of study; makes rules for their management and grants diplomas. This board consists of two members from each congressional district, appointed by the Governor, for terms of five years. Maryland. The State Board of Education has control of the State Normal School. This board consists of four members appointed by the Gov- ernor with the consent of the Senate, for terms of two years, and the principal of the State Normal School, who acts as Secretary of the Board. The members of the Board receive no salary, but are paid their expenses and have an appropriation for clerks. Michigan. In Michigan, the State Normal College and three State normal schools are under the control of the State Board of Education. This board is provided for in the State Constitution, and consists of three members, one elected in April of every second year for a term of six years ; and of the Superintendent of Public Instruction, who is Secre- tary of the Board. A president and treasurer are elected by the board from its own members. The State Board of Education is a body corporate; and has con- trol of all property belonging to the State normal schools, and power to receive and expend all moneys appropriated for such institutions; to select principals and instructors and fix their salaries ; to provide and regulate courses of studies, and to grant diplomas and teachers' cer- tificates. In a few matters, this board has some powers in regard to the general educational system. The board makes a biennial report to the legislature on the work and needs of the normal schools and such other matters as may be of interest. Wisconsin. The eight State normal schools of Wisconsin are under the con- trol of an unpaid board of regents of eleven members, — the State Superintendent of Public Instruction ex officio and ten others appointed by the Governor for terms of five years. The board elects a president and vice-president from its own number, and appoints a secretary and a treasurer. Provision is also made for boards of visitors of three members to be appointed by the State Superintendent to examine each of the State normal schools. Minnesota. The management of the five State normal schools of Minnesota is vested in an unpaid board of eight directors, appointed by the Gov- ernor with the consent of the Senate, for terms of four years, with the State Superintendent. One director shall be resident in each county in which a normal school is located and no two shall be residents of the same county. This board has the management and control of the State normal schools, and of all their property; appoints a president of each school, professor, and teachers and fixes their salaries; and prescribes and regulates the conditions of admission and courses of Instruction, con- fers diplomas and adopts rules and regulations. Under the Act of 1901, the State Board of Control had the finan- cial management of the State normal schools; but by Act of 1905 the full power of the State Normal School Board was restored, except as to the erection of new buildings, the purchase of fuel and the plac- ing of insurance on buildings, which remain under the authority of the board of control. The Act of 1905 provides that the State Normal School Board shall elect from its own members a purchasing agent, to superintend the making of aV purchases for said schools. Texas. The State Board of Education has the direct management and control of three state normal schools, and has general direction over a fourth school, for which it appoints a local board to perform such services as the state board may prescribe. Another normal school for colored teachers is under the control of the board of directors of the agricultural and mechanical college. E. GENERAL COMMENTS. Reports of Educational Commissions. Investigations relating especially to the problem of better economy, supervision and correlation of state-supported educational institutions have recently been made or are now in progress In several states, through official commissions or by voluntary action. Some of the recommendations resulting from these Investigations relate to plans for consolidation and co-ordination of institutions. An Education Commission established in Virginia in 1910, made a detailed survey of the situation in that state, and also secured reports cased on personal investigations by a representative of the Carnegie A;oundatIon for the Advancement of Teaching and by the specialist In nie^her education in the United States Bureau of Education. The final report of this commission In 1912 Included a large number of recom- "^endations, of which the following should be noted : I I 454 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 455 i That all institutions for education chartered by the state shall be under the supervision of the State Board of Education, which board shall see that their operations are conformed to their charters and that they properly carry out the purposes of said charters. Said institutions shaU report annually to said board and shall be reported by it in the list of educational institutions of the State. Economy and efficiency of administration and consideration for practi- cal business methods in State educational practice, clearly point to the wis- dom of placing the management of the normal schools— a set of homoge- neous institutions— in the hands of one common board, to be designated Ihe Normal School Board," which shall have authority to direct the affairs of them all, to prescribe their functions, fix and enforce clearly defined standards of admission as well as of work, unify their efforts apportion their funds, and in short perform lor the whole system of norma! schoo s the duties that each separate board now performs for the particular school to which it is attached. u Jh^ P.'^esidents of the normal schools should be required to meet with the board in an advisory capacity, but should not be members. They should however, form a normal executive council and constitute a committee on courses of study. , ^ That a permanent education commission be created by the legislature with power to co-operate with the presidents and boards of visitors, of the several state institutions of learning in the State and with others in author- ity, in carrying out whatever recommendations this General Assembly may adopt or any other matters which may be referred to it by the legislature. This commission should also continue the study of the educational system of the state for the purpose of making further recommendations to the next General Assembly looking toward a more complete co-operation and co-ordination of work. The permanent commission should be appointed by the Governor, and Its membership should be made up of the president of the State University, who should be ex officio chairman, the State Superintendent of Public Instruction, a member of the State Board of Education, nominated by the board, a member of the House of Delegates, a member of the State Senate and two other members who should be men of recognized ability and leadership in educational work in the state." A temporary education commission was created by the legislature of North Dakota in 1911 to study the educational system and to pre- sent a report which might — form the basis for the unifying and systematizing of the educational sys- tem of the state and thereby provide for the removal of unnecessary dupli- cation of courses in the institutions of this state, as well as to suggest such legislation as will tend to prevent any unseemly competition among the institutions for appropriations. The report of this commission, presented in December 1912, fav- ored one board for the normal schools, but separate boards for the university and agricultural college, the co-ordination of secondary and special schools under a common board and the development of the principle of the mill tax." President Van Hise's Conclusions. In concluding an extended discussion of central boards of control, before the National Association oTF State Universities in 1911, Presi- dent C. R. Van Hise, of the University of Wisconsin, said :^® "Report of the Virginia Education Commission, 1912, pp. 7-10. "Report of the U. S. Commissioner of PMucation, 1912, p. 95. 1011 ^^^?vo^,^®.° ^°^ Proceedings of the National Association of State Universities. IV 11, pp. 100-104. 1. In those states where there are two or more higher educational insti- tutions aside from the normal schools, these should be consolidated, if this be practicable. 2. Where consolidation is not practicable, each of the important edu- cational institutions or groups of institutions of the same kind should have its own governing board. In this matter, the experience of hun- dreds of years of all the educational institutions of the first rank should not be disregarded. 3. Where the higher institutions of a state overlap, in order to retain independent governing boards it will be necessary^ to have a sharp delimi- tation of scopes, which reduces overlapping to a minimum, and cooperation in financial requests to the legislature. These may be accomplished through a commission composed of representatives of each of the institutional boards and having full authority in the respects mentioned, but leaving the government of each institution to its independent board. 4. In the case of overlapping institutions, if cooperation be not suc- cessful, central boards are inevitable. Of the types of existing central boards that of Iowa is probably the best, in that it holds to the established principle of a non-paid board of moderate size for the government of edu- cational institutions and thus in a measure at least retains the advantages of independent governing boards. Suggestions as to Educational Reorganisation in Illinois. From this study of central boards and other educational authori- ties in the United States, the following observations may be made on present conditions in Illinois: 1. The University of Illinois, including the colleges of liberal arts and sciences, agriculture, engineering, lav^r and medicine, is nov^r a more completely consolidated institution under a single management than in any of the states v^here central boards of control for all State educa- tional institutions have been introduced. 2. On the other hand, v^ith separate boards of trustees for each of the five normal schools, the management of these institutions is much less consolidated than in other states, such as Massachusetts, Michi- gan, Wisconsin and Minnesota, v^here all the normal schools are under the control of a. single board. 3. Illinois is one of a few states which has no state board of edu- cation, with powers of supervision and advice over the local school authorities or other educational agencies. Under these conditions, the following recommendations are sub- mitted : , 1. That there be established an unpaid State Board of Education, with powers of supervision and advice as to all educational agencies in the state, but with no powers of management or control of insti- tutions. Such a board would stand in a similar relation to education as does the Charities Commission in relation to public charities in this state. 2. That the state normal schools be placed under the management ot a single unpaid board, to be appointed by t he Governor and Senate. , 1 V*^^^^ ^^^ advisability of proposing changes in the organization 01 the board of trustees of the University of Illinois be considered. I I EDUCATIONAL ADMINISTRATION. 457 various III. STATE LIBRARY ADMINISTRATION. A. LIBRARY ADMINISTRATION IN ILLINOIS. The library facilities maintained by the State of Illinois at the present time are chiefly as follows : " - . No. of c, , T -t. Location volumes State Library Springfield 57000 Sae Historical Library Sprin|field fsm i f^ La^ Library Springfield •;: I5C State Museum Library Springfield 4'^^ Library Extension Division Springfield ...'..*;;;; .* .* .' .' .' .* 2;000 Total in Springfield "TTTm^ State University Library Urbana! .*: l! i: l! [i '.i '. ! ! ! .' i i .* .* ; ' 2{o'000 There should also be mentioned the small library connected directly with the Legislative Reference Bureau at Springfield; the state fn c/?':i"'''\^'^P^ '" 'T'^^^ ^^^^'' ^"^ th^ special libraries attached to state departments and commissions, such as the library in the office fnrtTr 1''^?''''a^'''^TI?^ T"^*^^ Instruction, and the library of the former Railroad and Warehouse Commission, the catalogue of which fills a volume of 188 pages. In addition, there are small libraries mamtained in connection with the state normal schools, with varic state penal and charitable institutions, and with the appellate courts. State Library. By an act of 1839 an appropriation of $5,000 was made for a law rnnr?''"^.^"^''"' ^'^'^"^ l""' ^^'^ "^^ ^^ ^^'^ Legislature and Supreme t^ourt. The Governor and judges of the Supreme Court were placed in charge. By act of 1843 the law books were separated from the rniscellaneous collection. The latter was placed under the control of the Secretary of State; while the law books remained in the custody of the clerk of the Supreme Court. An Act of 1867 placed the State library under the control of a board of commissioners, consisting of the Governor, Secretary of State and Superintendent of Public Instruction ex officio. This library IS now managed under an Act of 1872 continuing the ex officio board ot commissioners. c. . ^vu ^^^^^^^n^. of State is, under the law, made librarian of the A :u7' ^"^ ^'''^" ^^^ custody of the books, maps, charts, papers and other things deposited in the library. Natural History Museum. By an Act of May 25, 1877, was established the "Illinois State Historical Library and Natural History Museum." This institution was also placed under the control of a board of trustees, consisting of the same officials as the board of library commissioners — the Governor, Secretary of State and Superintendent of Public Instruction, with power to make rules and regulations for its management and to appoint a curator. This officer was to fill the dual position of curator of the Natural History Museum and librarian of the State Historical Library. But his functions as curator were evidently considered primary and more important, because the only qualifications required of him were that he should be a person ot competent scientific attainments, and should possess a practical knowledge of the science of geology. All the books and documents in the State library relating to the history of the State were to be placed in separate rooms in the State house under the charge of the curator. State Historical Library. Apparently the union of the Natural History Museum and the State Historical Library under one management was not considered satisfactory, for, by an Act of May 25, 1889, the State Historical Library was placed under the control and management of a board of three trustees appointed by the Governor with the consent of the Sen- ate for a term of two years. These trustees were required to be per- sons "well versed in the history of the State, and qualified by habit and disposition to discharge the duties of their office." To this board of trustees was given the power to purchase books and documents relating to the history of the State, to appoint a librarian having the requisite qualifications, and to make rules and regulations for the man- agement of the library. The Act of 1889 is in effect an amendment of the Act of 1877, but contains no specific reference to the earlier act. The question of the constitutionality of the later act might therefore be raised. By a further Act of May 16, 1903, the State Historical Society was made a department of the State Historical Library, and the trus- tees of the library were authorized to pay out of the library appropri- ation the expenses of the society in examining records, and collecting data relating to the history of the State. One of the most important functions of the State Historical Library is the collection of manuscripts and documents relating to the history of the State and the Northwest Territory, and the editing and publication of such documents. This work is rather that of a historical commission than of a library, in the usual sense. In practice, this work is carried on in close connection with the department of history in the State University. Law Libraries. Beginning in 1849 appropriations were made for the purchase of books for law libraries for the Supreme Court in each of the three ^rand divisions in which the court held sessions. When these divis- ions were consolidated in 1903, the judges of the Supreme Court were authorized to appoint a librarian for the Supreme Court Library, to prescribe his duties and to fix his compensation. This library is now housed in the Supreme Court building. 458 EFFICIENCY AND ECONOMY COMMITTEE. Small appropriations have also been made for law libraries in the tirst, second and fourth appellate court districts. Library Extension Commission. By an Act of June 14, 1909, the Commissioners of the State Li- brary, 1. e., the Governor, Secretary of State, and Superintendent of .u i I '''^^??J ^""^ authorized to appoint two persons, who, together with the State Librarian (Secretary of State) shall constitute a board to be known as the Library Extension Commission, of which the State Librarian is ex officio chairman. The appointive members of the com- mission serve for two year terms, which expire in rotation. The com- missioners of the State Library are empowered to give advice and counsel to the Library Extension Commission and to exercise a gen- eral control over it. The function of the Library Extension Commis- sion is to give advice and information to the librarian or trustees of any existing public library, or to any person or community interested in starting a new public library, concerning the organization and adminis- tration of such library. To this end the commission is authorized to appoint an organizer, whose business it is to visit and advise the various public libraries of the State, and to assist in promoting and starting new libraries. The Library Extension Commission is also authorized to operate traveling libraries, by loaning them to any library 'vl A vu '''' ^""/"^ organization or community, not having an estab- hshed library, under proper conditions and regulations. Legislative Reference Bureau. .r...^J ^'!, ""' i"""^ ^^' }^^h ^^^ Legislative Reference Bureau was created, under the control of a board consisting of the Governor and InH ?^H^3^?"^" of the House and Senate Committees on appropriations andjudiciag. The Governor is ex officio chairman of the board. The executive officer of the bureau is a secretary, who together with other necessary officers and employees, is appointed by the board, which also fixes their compensation. It is the business of the bureau to collect books, documents and other material which may aid the members of the General Assembly in the performance of their official duties, and to prepare indices of bills introduced in the General Assembly. The bureau is also authorized to assist members in the drafting of bills, and to prepare a detailed budget of proposed appropriations for the use of members of the General Assembly. Inasmuch as the bureau may need a larger body of books, documents, etc., than it has on its own shelves, the board of commissioners of the State Library are empowered to co-operate vvith the bureau through the loan of books, documents or other printed matter. $ 2,000 $ 900 1,000 EDUCATIONAL ADMINISTRATION. STAFF, SALARIES AND ANNUAL APPROPRIATIONS FOR STATE LIBRARIES • Appr. Appr. for Salaries for Books Other Exp. State Library $ 3 Commissioners 6 Assistant Librarians — $900 to $1,300 each. 6,400 1 Janitor '. . . 900 Natural History Museum 1 Curator 3,000 1 Assistant 1,200 1 Janitor and other help 1,600 Library Extension Commission ; 3 Commissioners 1 Ortranizer . . 1,200 1 Assistant Librarian 900 1 Stenographer and other help 870 State Historical Library 3 Trustees 1 Librarian 2,000 1 Assistant Librarian 1,300 1 Stenographer 900 1 Janitor 900 Supreme Court Library 1 Librarian 2,400 1 Assistant Librarian 1,200 Legislative Reference Bureau 1 Secretary 3,000 459 Total $10,200 13,000 5,000 Totals, Libraries in Springfield $27,770 9 Commissioners and Trustees 15 Librarians, Curator, and Assistants 2 Stenographers 3 Janitors Library State Charities Commission Library R. R. and Whse. Commission State Normal University, 1 Lbr., 2 Asst.$ 2,760 Northern 111. Normal School Southern Normal University 1 Librarian 900 Eastern Normal School Western 111. Normal School Librarian and Assistant 2,460 Illinois School for the Blind 1 Library Assistant 400 Illinois School for the Deaf 1 Librarv Assistant 900 Kankakee State Hospital.' 1 Librarian 480 Illinois Soldiers' and Sailors* Home 1 Librarian 240 Illinois State Reformatory 1 Librarian 780 Appellate Courts .' 1 Librarian, First Division 800 1 Librarian, Second Division 600 1 Librarian, Fourth Division 600 $ 500 500 'V,666 1,000 1,000 1,666 Totals, Libraries not in Springfield. $10,920 14 Librarians and Assistants 1,500 600 800 $ 8,500 1,500 1,450 8,300 4,420 ! . f*\ ll fl 7,000 25,100 9,500 8,600 12*566 $21,000 $20,350 $69,120 $19,420 m^ 460 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 461 I '4; i u u From the above statement it appears that the total amount annually appropriated for State libraries in Springfteld is about $70,000; and the total amount for all State libraries other than that of the university IS about $90,000. Some saving could perhaps be effected in salaries and m the purchase of books through a consolidation of the various library boards and a more centralized administration. But the prin- cipal advantage of such a reorganization would lie in the greater etticiency in the management of the several libraries. To furnish an adequate State library and an efficient staff would require larger appro- priations than have been made in the past. B. LIBRARY ADMINISTRATION IN OTHER STATES. Some light may be thrown upon the problem of library organiza- tion in Illinois by noting some of the characteristic features in the organization of library facilities in other states. But most of the states have given relatively little attention to the development or organi- zation of the state library ; and it should also be remembered that con- ditions in the several states vary so widely that a system of adminis- tration which secures economy and efficiency in one state will not always secure the same results in another state. Nevertheless, the methods provided in a number of states with state libraries of some importance will be pertinent to this report. The New York State Library has been the largest and most impor- tant state library in the United States; and the system of administra- tion also illustrates the greatest degree of centraUzation. It is organized as a division of the Department of Education, under the general control ot the board of regents. This board has charge of all books, pamphlets, records, archives, and other property appropriate to a general library. It appoints a Library Director, who has direct charge of the state ibrary and superintends the State's library activities, including the legislative reference bureau, library extension work, and a- library school. The law libraries are, however, separately administered under the control of the courts. The State Museum is also under the depart- ment of education, but is in charge of a separate director. The State Historian is an independent official, appointed by the Governor. In Indiana, the state board of education is the state library board, and selects the state librarian, who serves until his successor is elected. The legislative reference bureau was for a time a division of t^e state library ; but is now separately administered. In Massachusetts, Ohio and California, the state libraries are under tb- control of library boards appointed- by the Governor, with the advi_e and consent of the Council in Massachusetts and of tlie Senate in Ohio. The Massachusetts and Ohio boards consist of three members; that of California has five members, appointed for four year terms. ^ ^ In Massachusetts the State Librarian is appointed by the Governor and Council, and holds office during their pleasure. In Ohio, the board of hbraiy commissioners appoints and removes the state librarian, with the consent of the Governor. The California board of library trustees appoints a librarian for a term of four years, unless sooner removed by a unanimous vot^ ^f the board. He receives a salary of $3,600 a year. The librarian is vested with power to appoint the assistant librarian and other em- ployees in the library. He acts as secretary of the library board, pur- chases books for the librar}'', indexes the statutes of each session of the legislature and also the journals and resolutions of the House and Senate, and compiles pamphlet laws of the State on special topics. The legislative reference library is a branch of the state library. The annual appropriation for the support of the State Library is $95,000, which is not itemized. There is also a separate Supreme Court Library, under the control of justices of the Supreme Court, who appoint a librarian and superintend its management. Texas has a Library and Historical Commission, established in 1909. This consists of five members, three appointed by the Governor and Senate for terms of two years, with the superintendent and head of the school of history of the state university. This commission was crefited to control and administer the state library, to collect material relating to the history of Texas and adjoining states, to preserve and publish archives and to encourage historical research. It also gives advice to proposed public libraries and conducts library institutes. The State Librarian is elected by the commission to serve at Its will. He Is secretary of the commission ; and has charge of the state library, documents, archives, and other materials. An assistant librarian has charge of the legislative reference section. In Mississippi, the state library Is under the control of the Gov- ernor, judges of the Supreme Court and attorney-general. The state librarian Is chosen by the legislature for a term of four years. There Is also a department of archives and history, with a board of nine trustees, who serve for terms of nine years, vacancies being filled by the board, subject to confirmation by the Senate, while If any selection bv the board Is rejected, the senate has the power of election. The Director Is elected by the board of trustees. Besides appropriations to the state library and the department of archives and history a small appropriation is made to the Mississippi Historical Society. Many state libraries are under the control of ex officio boards. Tn Pennsylvania the board consists of the Governor, Secretary of the Commonwealth, and Attorney-General; while the Governor appoints the Librarian, who is required to be "a person of known literary and bibliographical attainments." The library and museum now ^occupy the former state house near the new capltol ; and includes a legislative reference bureau. The New Jersey board of library commissioners consists of the Governor, Chancellor, Chief Justice, Secretary of State, Treasurer, Comptroller, and Attorney-General. This board appoints the librarian for a term of five years. The library has charge of traveling libraries. The Wisconsin State Library is in charge of an ex officio board of trustees composed of the justices of the Supreme Court and the Attorney-General, who appoint the librarian. The State Library, however, is In reality merely the State Law Library. The Free Library Commission Is composed of the President of the University, the State Superintendent of Public Instruction, and the Secretary of the State Historical Society, ex officio, together with two persons m \\h f . 462 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 463 ■ft' appointed by the Governor for five year terms. The commission oper- ates a department of traveling libraries and gives advice to all free libraries and to communities desiring to establish them. The com- mission also maintains at the state capitol a legislative reference room and a small working library for the use of the legislature and the several state departments, and, during sessions of the legislature, co- operates with the Secretary of the State Historical Society with a view to a joint arrangement for meeting the needs of the legislature in the matter of general books of reference. The State Historical Society IS authorized to collect books and other material illustrative of the history of the State, and maintains the most important and extensive historical library in the Middle West, which is housed with the state university library in a special building built by the State on the university grounds. In Iowa, the state library and a separate historical department were consolidated in 1900, under a board consisting of the Goveftior Judges of the Supreme Court, Secretary of State, and Superintendent of Public Instruction. There is also a state library commission, which consists of the State Librarian, Superintendent of Public Instruction, the President of the State University, and four other members appointed by the Governor. Appropriations are also made to the State Historical Society. The Minnesota and Missouri State Libraries are under the super- vision of the judges of the Supreme Court. These appoint the state librarian in Missouri ; but this officer is appointed by the Governor in Minnesota, for a term of two years. In these states there are also state library commissions, consisting of ex officio and appointed mem- bers in charge of library extension work. In Minnesota, the mem- bers are the president of the state university, superintendent of public instruction, secretary of the state historical society, and two others appomted by the Governor. In Missouri, the members are the State Superintendent of Schools, the president of the state university and three others appointed by the Governor. In Kansas, the judges of the Supreme Court are directors of the State Library and appoint the state librarian, the staff of the legis- lative reference bureau, and members of the traveling libraries com- mission (consisting of the State Librarian, the President of the State Social Federation of Clubs and three others). In Nebraska, the Supreme Court appoints a librarian of the law and miscellaneous library. The Public Library Commission which prornotes the formation of libraries consists of the State Librarian, the Superintendent of Public Instruction, the Chancellor and Librar- ian of the State University and one person appointed by the Governor for a term of five years. The legislative reference bureau is affiliated with the state university, and the director is appointed by the board of regents. Summary. The foregoing statements illustrate the variety in methods of library organization and administration in states located in different sections of the country. New York and Indiana have organized their state libraries as a branch of the educational system. Massachusetts, Ohio, Texas, and California have provided appointive library boards. In these states the state library includes all or the most important library services; but in New York and California the law libraries, and in Indiana the legislative reference work are under separate man- agement. Most of the other states place the state library under the con- trol of ex officio boards ; but in many cases there are separate author- ities for different phases of library work, such as, law libraries, library extension, legislative reference bureaus, and archives. C. SUGGESTIONS FOR REORGANIZATION IN ILLINOIS. The public libraries of Illinois naturally group themselves around two nuclei, first, the State University Library, at Urbana ; and second, the State libraries located at Springfield. The first, on account of its size, importance, special character, and location, stands in a class by itself. The question of reorganization, therefore, applies primarily to the libraries at Springfield. These libraries have grown up in piecemeal fashion, without a general plan. Being subject to diverse control, they do not always act in the greatest harmony or co-operation with each other and friction is sometimes likely to develop between the officers in charge of the separate libraries, and the service afforded to those who make use of the libraries is apt to be less comprehensive and efficient. Where there are several libraries under separate control, it results that books must in many cases be duplicated, or else there must be constant borrowing back and forth between distinct institu- tions, with the attendant difficulties and liklihood of friction. State Library, The requisite measure of co-operation between the various library interests can be secured only by greater coordination and unification of control. To this end the separate boards and commissions over the State libraries at Springfield should be abolished, and so far as practicable these libraries should be united into a single State Library, of which the present separate libraries should be divisions. Such a consolidated State Library should also have charge of the archives of the State. The Legislative Committee of the State Library Association has suggested the creation of a State Library Commission, to be composed of the Secretary of State and the Superintendent of Public Instruction ex officio, and five members appointed by the Gov- ernor, for five year terms, arranged so that the term of one appointive member would expire yearly. If the State Law Library should be included under the control of such a commission, one of the justices of the Supreme Court or the Clerk of the Supreme Court should be made an ex officio member of the proposed board in place of one of the appointive members. The example of other states, the special character of the State Law Library and its close relation to the work of the Supreme Court seem to point in the direction of keeping this library separate from the control of the general library board. If this were done, it would not necessarily be objectionable from the standpoint of efficient management. \r fW' 464 EFFICIENCY AND ECONOMY COMMITTEE. m- Some question may also be raised as to whether the Legislative Reference Bureau should be placed under the control of the sug- gested commission. Its functions of bill drafting and drawing up a budget might be separated from its purely legislative reference work. If this is done' the latter vvork would properly fall under the control of the general State library. The extensive library facilities at the State University, and the frequent need of such facilities by the Legislative Reference Bureau would seem to point to the need of 3 closer connection between the University and the Bureau. There would also seem to be some advantages in a closer official correlation between the State University and the work of the State Historical Library and Society. State Librarian. The creation of a single State Library will be a distinct step in advance in the solution of some now unsettled questions of library administration. But, perhaps, an even more important matter is the question of the selection of a competent State librarian. It seems clear that the State librarian should not be an ex officio elective ofhcer, who is chosen primarily for the performance of other duties, and who is only incidentally State librarian. Such an elective official IS not likely to be a person versed in library matters, and abreast of the most modern methods of library administration. The State librar- ian should be appointed, and should not have a' definite term of office, unless it is understood that he will ordinarily be reappointed upon tlie expiration of such term. He should receive a salary sufficiently large to make it possible to secure the services of a well trained and experienced librarian. He should have power to appoint other librar- ians and employees engaged in library work. He should be empowered to purchase books, superintend the library extension work, and oper- ation of traveling libraries, and to give advice and information with regard to the proper administration of the libraries located in various State charitable and correctional institutions. A single executive head over the library facilities of the State means economy of administration, unity of policy, and more efficient and comprehensive services. Such an arrangement tends to prevent danger of confusion resulting from overlapping of work, and con- duces to the co-ordinate development of the various branches of library work. Indeed, it may be suggested that apart from the selection of a qualified State Librarian there is comparatively little need for a Library Commission ; and this commission may be dispensed with by authorizing the State Board of Education, proposed in another section of this report, to select the State Librarian. Historical Research. Provision should also be made for continuing the research and publication work of the present State Historical Library; and for this purpose the trustees of the Historical Library should be continued as a Historical Commission. IV. SCIENTIFIC SURVEYS.2° A number of State scientific bureaus are maintained in connection with the University of Illinois, which should be noted in this survey of State administration. These include the Agricultural Experiment Station, the Engineering Experiment Station, the State Laboratory of Natural History, the State Entomologist, the State Water Survey, the State Geological Survey and the co-operative investigation of Illinois Coal Problems and Mine Rescue Station. The relations of these sev- eral bureaus to the University on the one hand and to the State gov- ernment on the other differ to a large extent; and no definite policy seems to have been developed to determine the status of such services. The Agricultural and Engineering Experiment Stations have been established by the Board of Trustees of the State University as a development of the research work of the institution ; and are supported out of the regular University funds. The other bureaus have been specifically authorized by Acts of the General Assembly under different laws, which provide different methods for their management and support. Agricultural Experiment Station. By Act of 1887, the Congress of the United States appropriated $15,000 to each state to establish, in connection with the agricultural colleges founded under the Act of 1862, agricultural experiment sta- tions "to aid in acquiring and diffusing among the people of the United States useful and practical information on subjects connected with agriculture, and to promote scientific investigation and experiment respecting the principles and applications of agricultural science." Under this provision the Agricultural Experiment Station for Illinois was founded in 1888, and placed under the control of the Trustees of the University. The Dean of the College of Agriculture is Director of the Station; and his staff is composed partly of members of the University Faculty, organized in departments of agronomy, animal husbandry, dairy husbandry, horticulture and botany. The United States grants have been increased to $30,000 a year; ^nd to these have been added larger State appropriations. Up to 1913 the State appropriations were made for specific investigations in six sections ; and for each section the station has been assisted by an advis- ory committee appointed by the agricultural association specially inter- ested in the particular work. Special mention should be made of the physical and chemical survey of Illinois soils, which has been under way since 1910. '"Prepared by John A. FalrlU. 466 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 467 I The fol owing financial statement, compiled from the Report of the Comptroller of the University for the biennium 1911-1913 show the sources of income and expenditures on account of the Agricultura Experiment Station for these years: v^miurai Appropriation Amount 1911-1912 Current Appropriations Agric. Exp. -Station $33,664 State Appropriations Crop Experiments 17,605 Dairy Investigation 15,*000 Floriculture 8,000 Horticulture 15,000 Soil Investigation .* 65,000 Soil Maps 25,000 Sou Examination 877 Stock Investigation 25,000 Total 171,482 U. S. Appropriations Adams Fund 15,301 Hatch Fund .' 15,318 Total 30,620 Grand Total $235,767 1912-1913 Current Appropriations Agric. Exp. Station 45,243 State Appropriations Crop Experiments 18,796 Dairy Investigation 15^000 Floriculture 8,000 Horticulture 15,000 Soil Investigation 72,318 Soil Maps 41,222 Stock Investigation 25^000 Total 195.337 U. S. Appropriations Adams Fund 16,140 Hatch Fund *. 15,218 Total 31,359 Grand Total $271,940 Disbursements, Maintenance and Capital Operation $3,313 $16,227 405 13,403 30 14,970 1,108 6,891 1,089 13,910 4,852 52,829 142 8,634 438 439 5,615 19,384 13,681 130,463 Total Balance $19,541 $14,123 13,809 3.796 15,000 ... 8,000 .... ■ 15,000 .... ■ 57,681 7,318 8,777 16,222 877 25,000 144,144 27,337 262 1,439 14,724 13,837 14,987 15,276 1.701 28,561 30,263 557 422 14,442 14,796 15,000 15,218 314 42 356 $18,696 $175,253 $193,949 $41,8i; 6,741 30,089 36,830 8,412 2,014 14,263 16,278 2.517 514 14,485 15,000 217 7,782 8,000 1,462 13,537 15,000 9,719 62,599 72,318 89 11,399 11,488 29,734 6,933 18,066 25,000 20.951 142,134 163.085 32.252 1,140 979 29,238 30,218 1.140 $28,672 $201,462 $230,134 $41,805 Totals include cents, which are omitted in this table. Engineering Experiment Station. The Engineering Experiment Station was established in 1903, by the Board of Trustees of the University of Illinois. The Director of the Station is the Dean of the College of Engineering in the Uni- versity ; and he with the staff consisting of the heads of departments Ttbe College of Engineering determine the character of investigations which are carried on by a group of special investigators and research ^^^^"^The purposes of the station are the stimulation and elevation of endneeiing education, and the study of problems of special impor- tance to professional engineers and to the manufacturmg, railway, mining and industrial interests of the State and the country. To aid m determining on investigations of a practical nature and their adaptation to present needs, conferences are held with committees representing the States industrial activities. , ,. , ^ ^, a- Up to 1913, sixty bulletins have been published. The expendi- tures of the station are paid from University funds, and for the year 1911-12 were as follows: SaiaHes $22,039.83 g^^^"" 13,566.47 Expenses ' Operation and Maintenance ^^4 2487? Equipment 107*40 Library ^"^'^ Total -$39,962.45 State Laboratory of Natural History and State Entomologist. The State Laboratory of Natural History originated in the museum of the State Natural History Society, established in 1862 at the State Normal University, at Normal. In 1871, this museuni was transferred to the State Board of Education (the governing body of the State Normal University), for the use and benefit of the State; and in 1877 the title was changed by law to the State Laboratory of Natural History. In 1867 the office of State Entomologist was established, the Governor being authorised to appoint, by and with the consent of the Senate, some competent scientific person as State Entomologist, for a term of two years, and until his successor should be appointed. No appropriations seem to have been made for equipment or expenses of the office, other than the salary of the officer. S. A. Forbes, who had been made curator of the Natural History Museum in 1872, and director of the State laboratory in 1877, was appointed State Entomologist in 1882, with the purpose of merging the two services, and with the result of providing the State Entomologist with some funds and facilities for his work. By Act of 1885, the Laboratory of Natural History was trans- ferred to the Illinois Industrial University (now the University of Illinois) ; the trustees of the University being placed in charge, and authorized to appoint a director, who might also be State Entomolo- f:ist. This change was made at the time Mr. Forbes accepted an appointment as Professor of Zoology and Entomology at the Uni- versity; and enabled the university work in natural history and ento- mology to be combined with the State laboratory and State entomolo- gist's office. This arrangement was advantageous both to the univer- I I 468 EFFICIENCY AND ECONOMY COMMITTEE. 4 I 'I' sity and to the State bureaus, and also reduced the cost of supervision- and has continued to the present time. But it should be noted that' there are no provisions in the law to require or ensure a continuance 01 this arrangement. ^ It is the duty of the director of the State laboratory of natural history to conduct a natural history survey of the State, giving prefe? ence o subjects of educational and economic importance; and to pre sent a series of systematic reports covering the entire field of the zoology and cryptogamic botany of Illinois. The laboratory is especially charged with the supply of natural history specimens to the State mu seum, State educational institutions and the public schools. Material of all classes has been collected in all parts of the State- held observations and experiments have been conducted extendin; The principal problem upon which the work of the survev has been concentrated, in recent years, is that of the effect of the pollution of the natural waters of the State upon aquatic biology. . Under the Act of 1867, the State Entomologist is required "to nvestigate the entomology of Illinois, and particularly to study the hi Scu Iturists" o7'the"^St r " V""' P?''-^'' °f the horticultu^rists and agriculturists of the State. Annual reports were at first required - but since 1875 the reports are directed to be made biennially. By Act of 1899, it is made the duty of the State EntomnlncrJct annua ly to inspect all nurseries in lUinoU and from time to toe^to ^I^LT' r'"^' °''^''"^' ^^"'' P'^"t^ti°" or othe" property n the State and any nursery stock shipped into the State supposed to eas^s Stifi^cat"^'™"' '"f^*' °' '"'^<^'^^ '•y contagious7ant di daneerouf n...,? f '?1*° °^"^'' °^ nurseries found free from Sbeolared nn P'^"' .^'^^^^^ ' ^"^ * ^"P^ °^ S"<^h "rtificate State A^lt^l t'i* K^"^^.^^ °^ """^^ «t°<^k shipped within the office^ is reZv/d /. ,?r °^ 'nspection from a State or government and tranJnort,Hn ^ ' *'^-"' ^'"^^ °' P'^"*^ ^^ipped into the State; and transportation companies are required to report to the State nuTr^'TLrZ ^"Jr^"'^ without'such certifi'cate. wJL any the StYte Fntol? •^'' P'^P"-? '' ^°""*^ '" ^^ '"^«ted or infected, the btate Entomologist must notify the owner or person in charge to diseas"''andtV° r^rM'^ '^''^'^ °^ *^ d^"g"°"« insects or plant State Fnf^^^r ? A° ^^''"'■'= °.'" "^S'^*^* t° '^° SO, it is the duty of tlie Under an Act of 1907, the scope of the investigations bv the State ?a"te°"ll'?nst';r' ■?''" ''^*^"^^^- - ^^ '"^'^ ^ct, it isCSuty to invesd- fams veSlV"^"r°"' to agriculture and horticulture, to truck tenT'of Sn ^"^"'^ '^^'^^ i'^^' '^^ P'-^ducts of milU, the con- reauired to [nwrt-''/"^/-" '''^^' ^^'"^'''^ P^^P^rty. He is also ShL^VZ f^l^ ^" -'"'^^*' '" *^ State dangerous to public inh^riouf tn n^n"'' ^T'™'"*' ^°' '^^ "^«t «"d control of insects injurious to persons and property. The results of investigations are m EDUCATIONAL ADMINISTRATION. 469 published primarily as bulletins of the Agricultural Experiment Sta- tion and also in the biennial report, and by lectures and demonstra- t'ons. The duties of the State Entomologist include on the one hand scientific and economic investigations and on the other hand inspection and police powers for the suppression of dangerous insects and plant diseases. The investigation and publication work is essentially that of an experiment station, and is so provided for in most states, while in Illinois it is a differentiated and specialized part of the natural his- tory survey of the State. The association of the two is helpful in many ways to both; and it would be difficult to disentangle and sep- arp'^e their lines of operation, which have been interwoven for thirty years. On the other hand the inspection and police services of the Entomologist's office are essentially different form any other part of its duty.; they are not normal to an experiment station or a university ; and to some extent hamper and limit the full effectiveness of the scien- tific studies. It may also be questioned if the work of scientific investi- gation and law enforcement can best be managed by one person. Appropriations in 1913 for the State Entomologist and the Natural History Survey were as follows: Per annum Two years Salary of State Entomologist $ 2,000 $ 4,000 General Expenses 16,000 32,000 Treatment of San Jose Scale 5,000 10,000 Destruction of Cinch Bugs 5,000 5,000 Expenses Natural History Survey 8,000 16,000 Publishing Bulletins and Report 2,000 4,000 Total $71,000 State Water Survey. By Act of 1897, the board of trustees of the University of Illinois were authorized and directed to establish a chemical and biological survey of the waters of the State. In 1911 additional authority was granted to the Water Survey to employ field agents to inspect water supplies, water sheds, etc., and to make, free of charge, sanitary exam- inations of Vv-ater for citizens of the St^te. The purpose of the Survey is to collect facts and data concerning the water supplies of the State, to make such chemical and biological examination and analyses as shall serve to demonstrate their sanitary condition, to determine standards of purity of drinking waters, to inspect water sheds and to make any investigations that will show best now to obtain and conserve an adequate supply of pure water for domestic and manufacturing purposes in every part of the State. The Survey is organized as a division of the department of chem- istry in the University, with special laboratories in the chemistry build- ing, and the engineering section in Engineering Hall. The Director pf the Survey is also Professor of Chemistry in the University, giv- ing courses in water chemistry and water supplies. Several other niembers of the university faculties are connected with the survey as consiilting experts in chemistry, engineering and bacteriology. In aaaition the survey has a staff of engineers, inspectors, and assistant chemists and bacteriologists. 470 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 471 ft \ In 1911 the general assembly appropriated $30,000 for the water survey. Additional amounts were appropriated by the university from the university funds. The following statement shows the amounts of appropriations and disbursements for the two years ending June 30, Disbursements Amount ,Q,, ,^ of Appropri- Maintenance and ^^^^■^^ ation Capital Operation Total ^^*^^ Syryey $ 7,908.96 $ 721.57 $ 6,091.24 $ 6,812.81 Water Station 6,451.80 6,451.80 645180 Water Investigation 15.000.00 665.75 10,554.88 11.209'63 Balance $1,096.14 3,7m7 '^Q^^^^ $29,360.76 $7,837.12 $16,645.12 $24,474.24 H886.51 1912-13 Water Survey $ 8,596.14 $ 3.75 Water Station 2,000.00 1,243.36 Water Investigation 15,000.00 664 75 $ 5,674.01 $ 5,677.76 $2,918.38 756.64 2,000.00 10,554.88 11,209.63 3,790.37 '^Q^^^s $29,386.51 $2,554.54 $22,969.83 $23,524.37 $3,862.14 in The staff and appropriations provided by the general assembly 1913 were as follows: ^''^^.<^^or ^2,000 Engineer ^ ^'^qq Assistant Engineer ...* I'soO Chemist and Bacteriologist .......,........!. .......... . I'SOO Other Assistants !'.."..*!'..*!!.*.*,*.*.' 3*000 Clerks, Steitbgraphers and other employes 1 500 Total Salaries .$13,000 Traveling Expenses '*.'.*.'.*.''*.'.*.'.*.*.'.*.'.* 4;000 Umce Expenses ^\^qq Total, per annum j21 500 In addition to the above $7,500 a year is allowed from the uni- versity funds. State Geological Survey. An Act of 1851 provided for the appointment of a geologist and for making a geological and mineralogical survey of the State. This survey was carried on until 1872, and the results were published in eight general reports and three volumes on the economic eeoloey of the State. By Act of 1905, the present geological survey was established at the University of Illinois, under the direction of a State Geological Commission, composed of the Governor (who is ex officio chairman), the President of the University and one other competent person appointed by the Governor for a term of four years. This commission appoints a director, who with the approval of the commission appoints assistants and employes. The primary purpose of the survey is the study and exploration of the mineral resources of the State. It is charged with making a complete topographical and geological survey; and with making sur- veys and studies of lands subject to overflow with a view to their reclamation. The topographical surveys are carried on in cooperation with the United States Geological Survey ; the reclamation surveys are conducted in co-operation with the Rivers and Lakes Commission, the United States Geological Survey and the United States Department of Agriculture; and the State Geological Survey also cooperates with the United States Bureau of Mines and the University College of Engineering in the mine rescue station and the investigation of coal problems. Laboratory work is done in connection with the depart- mental laboratories of the University. Besides the regular corps, temporary assistants are employed dur- ing the summer; and field parties are organized for the investigation of oil, clay, coal, stone, artesian water, cement materials and road materials, and for general scientific studies. The regular staff of the survey includes the director, consulting chemists, geologists and ceramist, an assistant State geologist, two geologists, three assistant geologists, a chemist and a geographer in charge of topographical surveys. The director of the geological survey and the regular staff give their whole time to the work of the survey. But some of the con- sulting experts and temporary assistants are in the service of the State University or other institutions during the academic year. Twenty-five bulletins and a large number of map» have been published. These include topographic maps, detailed geological maps, preliminary reports on mineral resources (coal, petroleum and gas, clay and shale, underground water, cement materials, building stone, road materials, lead, zinc, silica, flourspar, etc.), educational bulletins, maps of overflowed lands and reports on co-operative coal mining investigation. Appropriations for the survey in 1913 were as follows: Per annum Two years For Expenses and Employes $25,000 $50,000 For Maps and Reports 5,000 10,000 For Study of Coal Mining Industry 4,500 9,000 For Survey of Overflowed Land 7,500 Total ...$76,500 Mining Services. A co-operative investigation of coal mining problems has been established by agreement between the State Geological Survey, the University department of mining engineering and the United States Bureau of Mines. This investigation includes the study of existing conditions and constructive plans to enable coal to be produced more safely, more cheaply and with less waste. A Mine Rescue Station is maintained at the University by the United States Bureau of Mines in co-operation with the State Geologi- cal Survey and the University department of mining engineering. The station gives demonstrations and trains men in the use of apparatus for rescue work in mines, as an aid in fighting mine fires and in open- ing mines which have been sealed on account of fires. i»i^' m .-V}: m- m^ 472 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 473 I By Act of 1911, provision was made for the establishment of Miners and Mechanics' Institutes, the administration of which is vested in the trustees of the University of Illinois. The purpose o these institutes is declared to be to prevent accidents in mines and industria plants and to promote the technical efficiency of workers Ihe work may be carried on by means of bulletins, lectures, classes n? «KlS ^"^*^"^t^^" ^' in other ways. In 1913, an appropriation ot it)15,UUU a year was made for these institutes. Geological Surveys in Other States.^^ Of the scientific bureaus not conducted directly by the State Uni- versity in Illinois, geological surveys are the most common and most important in other states; and an examination of the methods of organizmg such surveys will serve to .illustrate the different plans of organizing such scientific services as a whole. Three main forms of organization for State geological surveys may be noted: Two-thirds of the active surveys (22 of 33) are under the general direction of a board or commission ; in four states the State Geologist is appointed by the Governor and in one state is elected- in five states, the geological survey is organized under the direct control of the state university; while in one state the geological survey con- stitutes the science division of the department of education. In praAical operation these forms shade into each other to some extent In more than half of the states with separate boards, the presi- .W t .• '^^^^ university and often the heads of other educafional institutions are ex officio members of the board; and in more than half of these states the headquarters of the geological survey is located at A /^^^^u^'^^^^'f ^y* "'^^^J" t^^ direction of the professor of geology. And in Ohio, where the State Geologist is appointed by the governor, the present incumbent is also professor of geology at the state university. ^y t>j On the other hand in three states, where there is a geological com- mission, the Governor appoir.is the Statt' Geologist or Mineralogist. Thus in about one-half of the states with active surveys, the pec- logical survey is actually conducted in close connection with the state university department of geology. In nearly all the states, where the most active and important work is being done, the geological survey is under the general direction of a commission and is not merged in the university. In some of these cases, as in Illinois, the President of the state university is a member ot the commission, and the headquarters of the survey is at the uni- versity; but the survey is distinctly separated from the university department. In states where the geological surveys are under the direct control of the university or are most closely identified with it; and also in states where the State Geologist is appointed by the Gov- ernor, without a supervising board, the activity of the survey and the value of their work is distinctly less. Bulletiil'^ J^fl9lf)^.^'^^irk* nf 7hFI.„*l' ^^^ .United States. U. S. Geological Surrey. Press. Jan/S. 1914. ' ®^'® Geological Surveys, in Mining and Scientific In most States with a geological commission, the governor is eX officio a member and usually chairman; and there are also other ex officio members, such as the presidents of state universities and other educational institutions, and in some cases the State Superintendent of Public Instruction and other elective state officers. In several states — California, Maine, Missouri, New Jersey, and Pennsylvania — most or all of the members are appointed by the Governor. The Geological Survey in New York is organized as the Science Division of the Department of Education. The executive officer is the State Geologist and Paleontologist, who is appointed by the Commis- sioner of Education and board of regents. The permanent force includes seven geologic assistants and six clerical assistants. From five to twelve temporary geologic assistants are appointed from time to time, usually college professors and occasionaly advanced students. State Conservation Commissions. Within a few years a number of states have established commis- sions or boards for the investigation, conservation and development of their natural resources. The work of these commissions resembles to some degree that of the scientific bureaus noted in this report; and they serve as illustrations of attempts to organize such work on broader and more comprehensive lines. Michigan in / 1909 established a Public Domain Commission, con- sisting of the Auditor General, the Commissioner of the Land Office, the Secretary of State, and three other members appointed by the Gov- ernor, one each nominated by and from the Regents of the State Uni- versity, the state board of agriculture (the board for the state agri- cultural college) and the board of control of the state college of mines. The commission appoints a secretary and a commissioner of immigra- tion. It is charged with problems relating to reforestation and the disposition of cut over lands. Minnesota has a State Forestry Board, consisting of the Director of the Forestry School and the Dean of the College of Agriculture of the state university and seven other members appointed by the gov- ernor for terms of four years, — two of the seven on the recommen- dation of the university and one each on the recommendation of the state agricultural society, the state horticultural society and the fish and game commission. This board appoints the State Forester. In Rhode Island a survey of the national resources of the state was organized in 1909 and the following year was placed under the general supervision of a State Conservation Commission. This commission, consists of five members — the Commissioner of Industrial Statistics, the Director of the State Agricultural Experiment Station, the Secretary of the State Board of Agriculture, the Commissioner of Forestry and the Secretary of the Metropolitan Park Commission. This survey of natural resources, embraces an examination of the geo- 'os:ical formation of the state, a soil survey with an examination of jvaste lands and water supplies, and a report on the fishing industry. Ihe Superintendent of the Survey is head of the department of geol- ogy of Brown University. 3, I M 474 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 475 Conservation Commissions were established in 1911 in Wisconsin Kansas and California, and in 1913 in Nebraska. The Wisconsin Commission consists of seven members, appointed by the governor for overlapping terms of six years, to serve without compensation Its duties are to consider the natural resources of the state with reference to their conservation, and to report recommendations as to measure*; for this purpose. The Kansas commission consists of not more than three mem bers from each Congressional district, appointed in the first place bv the Governor and removable for cause— vacancies to be filled by the commission. Its duty is to exploit the resources of Kansas, to collect information, to hold meetings, and to distribute papers and reports No expense from the State Treasury is authorized except for printing papers and reports. i' "^ The California commission is appointed by the Governor to serve without salary. The number of members is not named in the Act It IS to investigate and gather data as to forestry, water, water power" electricity and other power, mines and mining, reclamation and irri- gation and for revising the laws on these subjects. It is authorized 191 1^ ^^^^^^ assistance, and received an appropriation of $100,000 The Nebraska Conservation and Public Welfare Commission con- sists of the Governor, Chancellor of the State University, Director of the Conservation and Soil Survey, Secretary of the State Board of Agriculture, and Director of the Legislative Reference Bureau It has advisory powers in relation to state surveys, and economic and social statistics; and has supervision of a survey of natural resources water power road building, and an information bureau on state resources, industries, and development. Proposed Organization of United States Educational and Scientific Agencies. In an article published in "Science" for February 13, 1914, Elmer E Brown, former United States Commissioner of Education, and now Chancellor of New York University, presented a plan for the reor- ganization of the educational and scientific agencies of the United btates Government. This plan attempts to deal with a problem some- what similar to that for the organization of scientific agencies in Illi- nois and their-relation to educational institutions. The main features of this plan are presented below :" ^ There is one side of our whole national life and national government which IS neither economic nor political but scientific, and must be scientifically dis- cerned. Ihe problem of a national university is the problem of the organization ot this scientific side. In some few of the states it has been measurably recog- nized and organized in state universities. In our federal system it has been recognized fragmentanly, and as'a result various special commissions and scien- tihc bureaus have come into existence. What is lacking is a unitary organiza- tion. And that unitary organization is requisite in order that every piece of scientific work done for the government may have back of it the whole force "•Science. Vol. 35, pp. 244-246 (Feb. 13, 1914.) of established scientific methods, standards, and processes, of scientific atmos- phere and the ethics ^of science, which is realized only where many scientific departments work together long and continuously. A special tariff commission or any other sudden and temporary scientific commission is a makeshift at the best. It will be found at length that what is needed, in place of these, is a continuous and many-sided study of wages, indus- trial conditions, and cost of production the world over, carried on under con- ditions favorable to scientific progress, and in close connection with countless other inquiries with which these are interwoven. We shall find indeed, that a scientific branch of government, complete in itself, with its own traditions and its own methods, is as essential to the health of a modem nation as is a judicial branch, complete and sufficient in itself, and with its own judicial forms and procedure. It is necessary that this scientific side of our federal life be made a national entity, and given a fair opportunity of acquiring impressiveness and influence suited to its nature; and that is an opportunity of becoming a really commanding force in our national affairs in proportion to the service it is capable of rendering. In concrete terms, this would involve a separation of those existing offices of the government which are chiefly investigational in their character from those which are chiefly administrative; the grouping together of those of the former class, under some convenient working system; and the organization of new divisions, somewhat similar in character to the scientific bureaus already in existence, in order to deal with new needs as these shall become apparent and urgent. The process may very likely be a slow one ; but it is a building for the centuries, and the movement toward a comprehensible end is the principal thing at the present time. Among the offices and institutions to be brought together in this unique university would naturally be the Library of Congress the permanent organiza- tion of the Census Office, the Geological Survey, the Bureau of Standards, the Naval Observatory, and possibly the more strictly scientific offices of the Depart- ment of Agriculture. The Bureau of Education should be included, so far as its typical activities are concerned, provision being made elsewhere for the dis- charge of its administrative functions. It does not appear that the special form of organization of the Smithsonian Institution would prevent it from being made a member of this central group, in which its membership, with that of the National Museum, would be of the utmost importance. If not incor- porated in the new organization, it should at least be related to it through some close affiliation. A very fair beginning might be rriade with such a group. It should be reasonably clear that a university so constituted at the outset would be different from any that the world has hitherto seen. It would indeed be an institution of national dimensions, as well as of national functions. It is not to be supposed that the mere putting together on paper of these great government offices would make such a national university as is here pro- posed. The federal legislation which should bring them into one interlocking group would be but the bare beginning. The adjustment of their mutual rela- tionships, the rounding out of the organization by the addition of needed depart- ments and activities, the settlement of the relations of the university to other branches of the federal government and to educational systems and institutions throughout the country — all of these things will call for imagination and fore- sight and administrative ability of the highest order. Under the authority and with the support of the Congress of the United States the offices and governing boards of the new institution will have the responsibility of shaping a real organ of enlightenment, which shall not only be for all of the sciences and for all of the people, but shall be an effective working instrument as a whole and in its several divisions The investigation of a network of problems of labor, the costs of produc- tion, customs duties, commercial relations and the regulation of corporations, Will be one of the earliest undertakings which a national university may be expected to place upon a scientific basis. Its studies in this field will of necessity extend over decades and even generations. But within a few years there should ^^ assembled and made available for use a greater body of digested information 476 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 477 I V on these subjects than any Congress or administration in this country or anv fe^ isfaTion* ^^ '"^"^stry abroad has ever had, on which tb base its industrial To amass information, however, is not of itself scientific. What is to be chieflv ?,?u- !^A .^^ ^u"""" ^"S^ researches, in which closely related sciences shall be ^« -T.i • ^°^^*her and upon the largest scale, there shall emerge new and devdo m "^ theories, embodied in new and well grounded principles of social Comments and Suggestions. The connections between the scientific surveys and the state uni- versity appear to have developed beca*ise of the mutual cooperation thus made possible ; and the advantages of such co-operation is con- hrmed by the practice of other states, and should not be disturbed in any plan of reorganization. At the same time the diversity in the organization of the scientific bureaus and their official relations to the university shows the absence of any clearly defined policy ; and a better coordination should make possible more active cooperation and more effective results. Under ,the present arrangements, the experiment stations are organized within the university, in direct relations with the agricultural and engineering colleges ; the water survey and laboratory of natural history are ui:der the genenl charge of the board of trustees of the university, but receive separate appropriations outside of the university bill ; the geological survey is under a board on which the president of !.r! "ffi""^?/^^ ' 1 ^ T^""^? ""^ ^"* ^^^^^^^^ separate appropriations and is not officially related to the regular university organization; while the btate Entomologist is subject to appointment and removal by the gov- ernor, and receives separate appropriations, but has no official relations Ind harmonCur personal and practical relations are close XT . ^7^4'.^°^ S. A. Forbes, State Entomologist and Director of the xvjatural History laboratory, proposes a readjustment by or under f.nI'r?.T'"^ ""^ V^^^^a '"T^ "'^^"" ""^^'^ ^^e University Trustees Lr^?ce wh,Vlf H y^K^ ^"^5"^' ^"^u^ '*?*" inspection and law enforcement Ti^sL;. TTnHpr i ^1 "r^l' ^T^.^' H^"^^' ^^rt^^"^y "^t the University N^ur.? TTiUn^%^^^ ^% '^°:; "^ K P^"^^^ *^^ Geological Survey, the wTer%.^Tl^u ^r"^^^ ^^5^il^'"?. *^^ S^^*^ Entomologist's office), the others rr; ^' ^^"^V"t ^l^J^ Conservation Service, and possibly some t^nnfnf ]l.% !^ T''''"^' '^^"'"^ ^^ P'^^^^ th^ inspection and police func- rn^«?- • Entoniologist's office, those of the Game and Fish Conservation Commission, of the State Veterinarian, and possibly of the Live Stock Commission, etc-thus separating this kind of service wholly from that of investigation and general instruction. . The survey departments should be brought together at the University l"cf o\rTi^*^ '*u*^ survey building, and the police departments should be established at the State Capitol, in close relation to the office of the Attorney-General of the State. There should be a director of the Geological Survey of the Natural History Survey, of the Water Survey, etc., as now, since no one man could DC expected, as a rule, to be a competent expert manager of more than one ot these interests ; and in immediate responsible relation to each of these, tnere should be a special committee of the board of tommissioners or of the University Trustees, as might be finally decided. The report of the Committee on Scope and Method of the Minne- sota Committee on Administrative reorganization, appointed by the Governor in 1913, contains the following general recommendation: Each sub-committee to have in mind a possible line of cleavage in any sub-head of its group between the scientific, investigational or research functions and the strictly police or governmental functions ; and where any such line can be distinctly drawn, to consider carefully, the turning over of the scientific, investigational and research work to the university. There seems to be room for improvement in the administrative organization of the State scientific services, by placing them under the same general supervision. This may be done either by placing them under the University board of trustees, as is now the case with the Water Survey and the Natural History Laboratory, or by establishing a commission on natural resources in place of and similar to the pres- ent State Geological Commission. If placed directly under the author- ity of the university board, the work of the surveys may be sub- ordinated to the teaching work of the university; while if a separate commission entirely independent of the university is provided, the advantages of close relations with the university may not be fully secured. It is therefore recommended that there be created a State Com- mission on Natural Resources to replace the present geological com- mission and to have supervision over the Geological Survey, the Water Survey, the Natural History Laboratory, and the Natural History Museum, at Springfield, and such other scientific surveys as may here- after be organized. This commission might be composed of the Gov- ernor, the president of the university, and three other unpaid members, to be appointed by the Governor, with the advice and consent of the -Senate. The Commission on Natural Resources should appoint the curator of the Natural History Museum, and directors of the geological sur- vey, water survey and natural history survey, the last named to carry on the scientific functions of the State Entomologist, which ofifice should be abolished. The police functions of the State Entomologist should be transferred to the proposed Inspector of Apiaries and Nurseries in the department of agriculture. EDUCATIONAL ADMINISTRATION. 479 I 4 I 1 V. EXAMINING BOARDS." A considerable number of examining and licensing boards have been established for various professions and trades. These are com- posed of from three to seven members each, paid on a per diem basis. They prepare and conduct examinations of applicants for licenses and issue licenses to the successful candidates; and they usually have power to revoke licenses for certain causes, and sometimes have other powers of supervision over those engaged in the respective professions or trades. Such boards have a two fold function: On the one hand they administer laws establishing educational and other standards for entrance on the several professions and trades; and as such may be considered as educational authorities. On the other hand, their author- ity to revoke licenses and to supervise those in active practice is in the nature of police control, such as is not usually exercised by educational agencies. These two functions are differently emphasized in the sev- eral boards. One group of these boards have to do with physicians, the related professions of pharmacy, dentistry, and nursing, and with business affecting the public health, such as barbers and embalmers. In these the police power is of more importance than in the other examining boards for lawyers, accountants and architects, which are more dis- tinctly educational authorities. Following this distinction, the boards in the first group are con- sidered in the report on Health Agencies ; and in this report are con- sidered the Board of Law Examiners, the Board of Examiners of Architects, and the Board of Examiners in Accountancy. Board of Law Examiners. Admission to the practice of law in Illinois is regulated by Rule 39, adopted by the Supreme Court at the October Term, 1897. A board of examiners is provided, consisting of five members, which holds examinations annually at Chicago, Ottawa, Springfield and Mt. Vernon. Candidates at these examinations are required to have a preliminary general education, equal to a high school graduate, and a three years' course of legal study. For admission in Illinois upon licenses issued by other states, the requirements for admission in the state where the license has been issued should be equal to- those in Illinois, or the holder must have practiced under such license in courts of record for a period of five years. ''•Prepared by John A. Fairli*. Board of Examiners of Architects. The Board of Examiners of Architects was created by act of the legislature, June 3, 1897. It consists of five members, appointed by the Governor with the consent of the Senate, who serve for four years, with overlapping terms. One of the members of the Board must be a member of the faculty of the University of Illinois. The others must be residents of the state and must have engaged in the practice of the architectural profession , for a period of at least ten years. The Board is authorized to elect one of its own members as president, and another as secretary and treasurer. The secretary is entitled to a salary fixed by the Board, but the other members are compensated at the rate of $10 per day and expenses for time actually spent in the performance of their official duties. The powers and duties of the Board of Examiners relate to : 1. Adoption of rules and regulations. 2. Conducting examinations and issuing licenses. 3. Revocation of licenses. 4. Annual reports to auditor. The Board adopts its own rules and regulations governing its own proceedings. It is also authorized to adopt rules and regulations set- ting forth the conditions under which examinations for licenses to practice the profession of architecture may be held. When such regu- lations are made or altered in any way, a copy must be filed with the Secretary of State and two or more publications made in at least one architectural journal and one daily newspaper in the State. The Board issued licenses to architects in practice at the time the law went into effect ; and it conducts examinations and issues licenses as architects to successful applicants. Examinations must be held at least twice a year, at which anyone may appear provided he is 21 years of age and pays a fee of $15 to the Secretary of the Board. They may be conducted directly by the Board or by a committee of two members thereof. The examinations must bear' particularly on such subjects as the construction of buildings, strength of materials and the practical application of such knowledge; they should also be designed to show knowledge of the laws of sanitation as applied to buildings and building construction. If the examination is passed satisfactorily the Secretary of the Board issues on payment of a fee of $25, a license to practice architecture in the State. Renewal of licenses must be made annually, the fee for renewal being $5, which is increased to $10 if renewal is not made during the time prescribed by law. The law defines an architect as "any person engaged in the plan- ning or supervision of the erection, enlargement or alteration of build- in?[s for others and to be constructed by other persons than himself." According to the seventh biennial report of the Board, published in 1911, regular meetings are held once a month. Two class examina- tions are held each year, in April and October, at the University of Illinois; and candidates claiming to have been practicing architects are examined at the board meetings. The results of these examina- tions for two biennial periods were as follows: 1 480 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 481 p • . • , 1907-08 1909-10 r'^I'^'^Ia h^f n"- -J "'• P^^sed 66 157, passed 77 Examined before Board 20, passed 12 27! passed 17 rT°*^'*,; '^^> P^"^'' 78 184, passed 94 ynA • ** /° December 1910, a total of 1,131 licenses had been issued 706 m class A and 425 in class B. Of these 377 had been revoked' leaving 754 in force. ' Licenses may be revoked by the Board for gross incompetence or neghgence in the construction of buildings or dishonest practices Persons so charged are entitled to twenty days notice and a hearing' vn.! 'Tl^^T ° / ''^"'^ *^^" ^^ accomplished only by the unanimous vote of the Board. On cancellation of the license, the clerk of the was re^rdld"'* """"^ '° ^^^ "^^"^ °^ ^^'^'^ "^"""'^ *° "^^'"^^ ^^ ''*^^"'« A new license may be obtained after six months upon payment of a fee of five dollars and upon the submission of evidence showing proper reasons for reinstatement. . * t.,. 1?"""!?^ ^^ ^"^ ^^^° ^°"' ''""^^<1 architects were tried before the Board and in two instances licenses were revoked. According to r^fn^yir *^ ^""u i ^"""'" '^ '^"^^^'^ because of incompetency! remstatement may be had only after the individual has passed an examination in the subject in which he was found incompetent If revocation is due to recklessness in construction, the next regular class thatToIr ""'* ^n P'^^^ ^"^ acceptable evidence presented to show that proper care will be taken in the future. If dishonest practices are to fut!Jr^ "J'-^ocation, evidences, recommendations and guarantees as the Board ^°" *"""* Presented that are satisfactory to Board*"^ '^* ^'^^ "°* provide for judicial review of the actions of the The Board is required each year to submit to the auditor of the ™h-* ^^^ containing a statement of the proceedings during the preceding year and a financial resume of receipts and expenditures for the same period. Under the original act, the expenses of the Board were paid from the income received from examinations, license and renewal fees; and It was provided that no salary or other expenses should be paid from the State treasury. Smce July 1, 1911, the fees collected have been paid into the State treasury, and the expenses of the board are paid out of btate appropriations. ^ ^n loi^^'P^' '"l^'ii^o^.v^t^r^^ treasury for the period ending September ^oii^li "^T ^l^>?^-55; and payments for the same period were :?V,106.61. Appropriations in 1913 were as follows; 17^.. «^- J- J ... Per Annum ^or per diem and expenses of members $2 000 For salary of Secretary and Treasurer 1 800 For salary of Stenographer '.'. 900 Total salaries * 4 70O For office rent ..........*.*.*.*.*.'.*. .** * nOO For other expenses *.*.*.*.*.*. 900 Per Annum Total for one year '. $ 6,700 Total for two years 13,400 Deficiency 1912-13 500 Grand total $13,900 Receipts into the State treasury for the two years ending Septem- ber 30, 1914, were $19,876; and disbursements for the same period were $15,412.34. Board of Examiners in Accountancy. By Act of 1903, the University of Illinois is charged with the examination of applicants and the issue of certificates as certified pub- lic accountants. The University appoints a board of three examiners, two of whom must be accountants in active practice in the State, and the third may be an attorney skilled in commercial law. Their terms are three years, and they receive $10 a day for time spent and their traveling expenses. A university committee of three members is also appointed, which serves without compensation and has charge of pre- liminary arrangements connected with the examinations. The board of examiners passes upon applications for accounting certificates under the waiver clause of the law, whereby certificates can be conferred upon accountants with five years experience prior to the passage of the Act. The board also prepares examination ques- tions (which include theory of accounts, commercial law, auditing and practical accounting), conducts the examinations, examines the papers and certifies the results to the university committee. On receipt of this certification, the successful candidates are recommended to the president of the university who issues their certificates. The uni- versity may revoke any certificate for unprofessional misconduct or other sufficient cause, on notice and after a hearing. A fee of $25.00 is collected from each applicant, and from the fees received the university pays all expenses incident to the exami- nation. No report is required by law; but reports are made to the university, and the following statement shows the financial operations for the two years ending June 30, 1913.2* P^. Two Years uishursements. 1911-12 1912-13 1911-13 Printing, Postage and Office Expenses $187.70 $486.25 $ 673.95 Conducting Examinations 412.54 326.16 738.70 General Supplies 49.55 49.55 Equipment 36.75 36.75 Incidentals 56.70 ..'.... 56.70 Totals $656.94 $898.71 $1,555.65 ^<^<^^ipts $553.96 $714.12 $1,268.08 It may be noticed that the disbursements for these two years have been larger than the receipts. **From the report of the Comptroller of the University of Illinois. 482 EFFICIENCY AND ECONOMY COMMITTEE. EDUCATIONAL ADMINISTRATION. 483 Regulation of public accountants began in Scotland, by the incor- poration in 1854 of the Society of Accountants in Edinburgh. There are now two other incorporated associations of accountants in Scot- land, and only members of these three societies, who are admitted on examinations following apprenticeship, may announce himself as a chartered accountant.^* In England accountants are also regulated by several chartered societies, the first of which was incorporated in 1880. The same method is followed in some of the Canadian Provinces (Ontario and Saskatchewan) and in other British colonies, — Newfoundland and South Africa. In New Zealand there is a board of accountancy exam- iners, established in 1908. Accountant societies are also chartered in France, as in Scotland and England, with strict admission examinations. In Germany accountants are sworn before a court of competent jurisdiction or other competent authority. In the United States, New York first regulated the practice of accountancy in 1896; and about one-half of the states now provide examinations for certified public accountants. In most of the states with a system of regulation, there is a board of three members appomted by the Governor. In Maryland and Washington, appoint- ments are made from a list of names submitted by the state association of public accountants. In Nebraska, the Auditor of Public Accounts IS a member of the board. In Illinois and Montana, the accountancy examiners are appointed by the Trustees of the State University, who issue and revoke licenses. In New York, the accountancy board is appointed by the board of regents, and forms a branch of the depart- ment of education. In Massachusetts, accountancy examinations are under the supervision of the bank commissioner. The arrangements for the examination and certification of public accountants in Illinois form a distinct exception to the methods fol- lowed for other professions. Placing this function in the hands of the university makes the certificate more in the nature of a degree; and something may be said for applying this principle to all the pro- fessional examinations and licenses issued by the State. On the other hand the provision for revoking certificates is a police power not normal to the university functions ; and it is not advisable as a general rule to place powers of this class on educational authorities. Comments. The creation of separate and independent examining and licensing boards for a considerable number of professions and trades is an illus- tration of the general tendency towards the useless multiplication of public authorities subject to no eflfective supervision. Such boards are apt to consider themselves as autonomous bodies, representing the pro- fession or trade, but without definite responsibility to the State govern- ment from which their powers are derived. There is a steady pressure on the General Assembly to establish additional boards of this kind; and defi nite action should be taken to place all of such boards under "Laura Scott: Certified Public Accountants, Wisconsin Legislative Reference Department, Comparative Legislation Bulletin, No. 22 (1910). the control of some responsible State authority. This may be done by organizing such examining and licensing boards as a division in the proposed Department of Education, as is now done in the State of New York. Or, each of such boards may be placed in a State depart- ment dealing with matters related to the profession or trade. In another report, it is suggested that the examination and licensing of physicians, nurses, pharmacists and dentists be placed under the super- vision of the proposed Health Depatment. Following this plan, the board of law examiners may remain under the supervision of the Supreme Court. There is, however, no State authority especially appropriate to have supervision over the examiners of architects and accountants; and, it is, therefore, suggested that these be organized as primarily educational agencies under the supervision of the Uni- versity of Illinois or the prop6sed State Board of Education. m^ EDUCATIONAL ADMINISTRATION. 485 I I I ■a a VI. SUMMARY OF RECOMMENDATIONS. Several factors make it inadvisable, at least under present con- ditions, to urge the consolidation of all the educational agencies in Illinois into a single highly centralized department. The management of a number of State institutions of different types and the supervision of local schools cannot well be cared for by one authority. At best this result can best be reached by a gradual development than by a radical change. Moreover under the constitutional provisions requir- ing the election of the State Superintendent of Public Instruction, no satisfactory provision can be made to ensure the selection of the best qualified official for the head of a such a department. At the same time it is possible to introduce some measure of simplification by providing for the consolidation of educational author- ities whose functions are most closely related, and for a more effective correllation and coordination between the different authorities For these purposes the following summary of recommendations is pre- sented : ^ ..«c-^;'^?!i,''''Sf'''''o''^ ^'^ ""P^^^ ^^^*^ ^°^^^ of education, to consist of the State Supermtendent of Public Instruction, the Presi- dent of the University of Illinois, a respresentative of the Normal Schools and two others to be appointed by the Governor with the advice and consent of the Senate. This board should have advisory powers over the local school systems, and all other educational agen- cies in the State. ^ 2. The consolidation of the five boards of trustees of the State normal schools into a single board of control to consist of the State buperintendent of Public Instruction and of eight otPer members to be appointed by the Governor and Senate, for terms of eight years, the term of two members to expire every second year 3. The union of the State library, the libraiy extension com- mission, and the State historical library into a State library, in charge of a State ibrarian— the trustees of the State historical library to con- tinue as a historical commission. 4. The union of the natural history museum. State geological sur- vey, the State water survey, the State laboratory of natural history and the State Entomologist's office under a Commission on Natural Re- sources, to consist of the Governor, the President of the State Uni- versity, and three other members to be appointed by the Governor and ( Tir* ^^^ reorganization of the board of trustees of the University ot Illinois— to consist of the State Superintendent of Public Instruction and eight members appointed by the Governor and Senate for terms ot eight years, two members to be appointed every second year. 6. Changes in local school administration: (a) by permitting townships to adopt the township unit. (b) by consolidating the several township school authorities. (c) by transferring the management of local school funds to the county treasurers under the supervision of the county superintendents, except in Chicago. (d) by providing educational qualifications for county superin- tendents, and authorizing counties to establish county boards of edu- cation. FINANCIAL SUMMARY. WARRANTS DRAWN ON THE STATE TREASURY FROM OCTOBER 1, 1912 TO SEPTEMBER 30, 1914. Superintendent of Public Instruction $ 15,000.00 Office of Supt. of Public Instruction 56,391.48 $ 71,391.48 State School Fund $ 4,608,537.50 Interest on State School Fund 113,874.62 Salary of County Superintendents 388,855.83 Kaskaskia Commons' School Funds 79,492.67 5,190,760.62 State Normal University $ 388,850.18 Southern Illinois Normal Univ 254,257.95 Eastern Illinois State Normal School 251,076.53 Northern Illinois State Normal School 198,435.83 Western Illinois State Normal School 219,296.51 1,301,917.00 University of Illinois 4,084,088.69 State Library $ 79,492.67 Library Extension Commission 5,392.95 Illinois Historical Library 46,179.53 Legislative Reference Bureau 11,176.46 142,241.61 State Entomologist $ 69,926.62 State Geological Survey 66,656.03 State Water Survey 24,565.54 Museum of Natural History 15,700.00 176,848.19 Board of Examiners of Architects 15,412.34 Educational Building Commission 930.35 Total $10,983,590.28 1 I i A REPORT ON THE ADMINISTRATION OF LABOR and MINING LEGISLATION BY W. F. DODD ASSOCIATE PROFESSOR OF POLITICAL SCIENCE UNIVERSITY OF ILLINOIS It > I; ma i' 41 CONTENTS Page I. Introduction T ; 491-492 II. Department of Factory Inspection 493-516 Historical Note 493 Powers of the Department .493 Organization 494 List of Principal Laws 495 Powers and Dutie's Under Particular Statutes .496 Act to Regulate the Manufacture of Clothing, 1893 496 Act to Compel Use of Blowers on Metal Polishing Machines, 1897. . . .497 Child Labor Law 498 Butterine and Ice Cream Inspection Act 505 Act for the Protection of Employees Engaged in Structural Work ..506 Health, Safety and Comfort of Employees 507 Hours of Labor of Women 508 Protection from Occupational Diseases 509 Other Acts Enforcible by the Factory Inspector's Office 511 Relation of Department of State Factory Inspection to Other State Offices 511 Relation of the Department of Factory Inspection to Local Authorities .512 General Survey of Organization and Work 513 III. Commissioners of Labor and Bureau of Labor Statistics 517-521 Historical Note 517 Accident Reports 518 Mines and Mining 518 Private Employment Agencies 519 Free Employment Offices 519 Workmen's Compensation Act 519 Reports of the Bureau of Labor Statistics 519 Present Position of Bureau 520 IV. Private Employment Agencies 522-528 Organization of the Enforcing Authority 522 Duties of the Enforcing Authority 522 Finances 535 Reports 525 V. Free Employment Offices 529-533 VI. Industrial Board 534-536 \ n. State Board of Arbitration 537-540 Arbitration 537 Conciliation and Investigation 533 Activities of the State Board of Arbitration !.!.*!.'*."..'.*.* .539 ^ni. Mining Authorities ' 541-553 State Mining Board and Mine Inspectors 541 Miners' Examining Board .546 Mme Fire Fighting and Rescue Stations 547 Miners' and Mechanics' Institutes ...S48 Mining Investigation Commission .........!... ^549 Suggestions Regarding the Administration of Mining Legislation. .!.!.* ^550 H1 Page IX. Accident Reporting 554-562 Industrial Board 554 Public Utilities Commission 556 State Mine Inspectors 556 Department of Factory Inspection 557 Bureau of Laber Statistics 558 Character of Reports 558 Purposes of Accident Reporting 559 The Employer Under the Present Situation 561 Suggestions 561 X. General Summary and Recommendations 563-573 Recent Development in Other States 563 Present Situation in Illinois 567 Recommendations 569 Legislative Methods of Carrying the Above Recommendations into Effect 571 XI. Summary of Recent Legislation in Other States 574-590 Wisconsin Industrial Commission 574 Industrial Commission of Ohio 577 New York Department of Labor 578 Pennsylvania Department of Labor 581 Massachusetts 582 California 584 Oregon Wei fare Commission 588 Kansas Department of Labor and Industry 589' A REPORT ON LABOR AND MINING ADMINISTRATION. BY W. F. DoDD, University of Illinois. I. INTRODUCTION. The field of labor legislation is one in which primary emphasis must be placed upon efficiency rather than upon economy. With the expenditure of funds now appropriated to the various labor bureaus in Illinois a much more effective administration can be had, but in order to enforce the present body of labor legislation in an effective manner it is probable that more money will have to be spent than at present. One of the essential difficulties in the present situation is that there are not enough inspectors to enforce adequately the various safety regulations, even if the inspection service were effi- ciently organized. However, a centralized organization, with the do- ing away of present conflicting and overlapping jurisdictions, should accomplish a great deal, even without an increase of appropriations. There are now a number of official bodies vested with power to administer the labor laws of Illinois, and the powers of these bodies arc often overlapping. The first labor body created was the Bureau of Labor Statistics, established in 1879, under the supervision of a Board of Commissioners of Labor. This Bureau had primarily the functions of collecting and publishing information, but from 1883 to 1907, it also had supervision over the mine inspection service. As new needs have been felt new bodies have been constituted to meet them. In 1893 the Factory Inspector's Office was created; in 1895 a State Board of Arbitration was constituted. Beginning in 1899 control was established over private employment agencies, and from 1903 to 1909 this control was exercised directly by the Com- missioners of Labor. Since 1909 the direct supervision is exercised by a chief inspector of private employment agencies, but a power to grant and revoke licenses is vested in the Commissioners of Labor. Begimiing in 1899, free employment offices have been established in a number of cities; these offices are substantially independent, but report to the Commissioners of Labor. The administration of the first workmen's compensation law (1911) ^as vested in the Bureau of Labor Statistics, but for the administra- tion of the act of 1913, a new body, the Industrial Board, was created. With respect to mining there has been a similar multiplication of 9-dministrative bodies, and we now have not only the State Mining l^oard, but also a Miners' Examining Board, a Mine Rescue Com- mission and a temporary Mining Investigation Commission. i ! in r m 492 EFFICIENCY AND ECONOMY COMMITTEE. ■11 I i Each field of labor legislation and the organization for its adminis- tration, must now be taken up somewhat in detail, and the subjects arc discussed in the following order: (1) Department of Factory Inspection; (2) Commissioners of Labor and Bureau of Labor Sta- tistics (together with free and private employment agencies) ; (3) Industrial Board; (4) State Board of Arbitration; (5) Mining au- thorities. To the important subject of accident reporting it has been thought desirable to devote a separate section of the report. After a general review of the present administrative organization for the en- forcement of labor legislation, there is presented a general summar>' together with a recommended plan of reorganization. Before this report was completed, an independent investigation of the administration of labor laws in Illinois was made by Mr. E. H. Downey and Mr. Carl Hookstadt, for the United States Commission on Industrial Relations. Assistance has been received from the re- sults of this investigation. In connection with child labor, assistance has been received from the Children's Bureau of the United States. Acknowledgement is made to Professor F. S. Deibler, of North- western University, for assistance in connection with Section XI of this report; this part of the report was prepared by Mr. J. E. Miller, of the University of Illinois. II. DEPARTMENT OF FACTORY INSPECTION. Historical Note. The offices of State Factory Inspector, Assistant State Factory Inspector and deputy State factory inspector were first created by the act to regulate .the manufacture of clothing, wearing apparel, etc. and to provide for inspection thereof, approved June 17, 1893 and in force July 1, 1893. The department, as first authorized, was to be composed of -a factory inspector at a salary of $1,500, an assistant at $1,000, and ten deputy inspectors, five of whom were to be women, at a salary of $750 per annum. All offices thus created were to be filled by appointment of the Governor, the chief inspector to hold office for a term of four years and the assistant and deputy inspectors to' hold office during good behavior. Under the act of 1893, as amended in 1903, inspectors were empowered to visit and inspect at all reasonable hours and as often as practicable, the workshops, fac- tories and manufacturing establishments in this state, where the manu- facture of goods was carried on and to perform such other duties as should thereafter be prescribed by law. A duty was imposed upon the chief inspector to report in writing to the Governor, on the 15th day of December annually, the result of inspections and investigations, together with such other information and recommendations as might be deemed proper. It was also the duty of the department to make special investigations into alleged abuses in any workshop whenever the Governor should direct, and to report the results of such investi- gation to the Governor. The general duty to enforce the provisions of the act and to prosecute all violations of the same w^as also imposed "Pon the department. The inspector was required by the amendment of 1903 to divide the State into fifteen inspection districts and to assign a deputy inspector to each district, such deputy to have charge ot actual inspection therein. Reassignments could be made and depu- ties changed from one district to another when the chief inspector, in nis discretion, was of the opinion that the good of the service required Jt, and he might also re-divide the State when he deemed such a re- aivision advisable. Powers of the Department. Under the acts of 1893 and 1903 the powers of the state factory nspcctor were to "inspect workshops, factories, and manufac- car"^H^^ ^" ^^^^ ^^^^^ where the manufacture of goods is tion'^ T'' ^^ prosecute all violations, and to make report of inspec- an . . r ?i ^^^ general work of the office to the Governor. Under state f^ -' ^^ ^"^cnded in 1911, it is made the duty of the chief c tactory mspector (1) to exercise general supervision over the t 494 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 495 ill ii department of factory inspection; (2) to secure the enforcement of all laws now in force or hereafter enacted, relating to the inspection of factories, mercantile establishments, mills, workshops, and com- mercial institutions in the state; (3) to perform such other duties as arc now or may hereafter be prescribed by law to be performed by the factory inspector; (4) to visit and inspect, or to have his deputies visit and inspect at all reasonable hours as often as practicable, the factories, mercantile establishments, mills, workshops, and commercial institutions in this State, where goods, wares and merchandise are manufactured, stored, purchased, or sold at wholesale or retail; (5) to report to the Governor on the thirtieth day of June of each year the result of his inspections and investigations with such other infor- mation and recommendations as he may deem proper; (6) to make special investigations into conditions of labor or into any alleged abuses in connection therewith, when called upon by the Governor to do so; (7) to prosecute all violations of law relating to inspection of fac- tories, etc.; (8) by written order filed with the Governor, to divide the state into inspection districts and to assign to each district a deputy inspector, due regard being had to the number of establish- ments and the amount of work required to be performed in each district. By a like order filed with the Governor he may re-divide the state into inspection districts when conditions are changed or in his discretion the good of the service requires. He may change a deputy from one district to another. Organiiation. Under the act of 1907 the composition of the Department of Factory Inspection was as follows : Name Salary Chief State Factory Inspector, ^^'?S2 Assistant Chief Factory Inspector 1.500 25 Deputy State Factory Inspectors 1.200 Attorney for the Department 1.500 The department as constituted in 1913 under the act of 1907 as amended in 1911 and under the appropriation act of 1913 was as follows : Name Salary Chief State Factory Inspector ^^'ocn Assistant Chief Factory Inspector oiv\ 30 Deputy State Factory Inspectors, each 1.200 One Physician 1.500 One Chemist 1.500 One Chief Clerk 1.200 One Stenographer 1.200 Two Stenographers ,each 1.000 One Stenographer ^ Two Female Investigators, each 1.000 Two Clerks, each 900 One Messenger 900 Telephone Operator oOO Attorney •• 1»500 An editor is employed out of the general appropriation for tJic State department of factory inspection. Under the act of 1911 (approved June 5) it was provided that the Governor should appoint the chief State factory inspector, the assist- ant chief State factory inspector, thirty deputy factory inspectors, a physician, and an attorney. The State civil service amendment act (approved June 10, 1911) exempted from its terms officers appointed by the Governor, subject to confirmation by the Senate, and the State civil service commission assumed that the factory inspection officers came under civil service, in view of the fact that confirmation by the Senate was not specified. The present attorney general has, however, ruled that these positions are exempt because confirmation by the Senate is implied and only the clerical force of the department of factory inspection is now under the civil service law. List of Principal Laws. The following laws came within the jurisdiction of this department during the period from 1893 to 1907: 1. The act to regulate the manufacture of clothing, wearing ap- parel, etc.; and to provide for inspection thereof, 1893. 2. The act to regulate the employment of children, approved June 9, 1897, in force July 1, 1897. 3. The act to compel the use of blowers on metal polishing ma- chines, approved June 11, 1897, in force July I, 1897. 4. The more complete child labor law of 1903, approved May 15, in force July 1st. From 1897 to 1899 the fire escape act (of 1897) was under the jurisdiction of the factory inspector's office. Before 1907 the reports of the state factory inspector (in addition to the general show- ing of statistical information and results obtained in the enforcement of the above laws) contain numerous recommendations for the en- largement of the office and for the. extension of its powers and duties. In many cases actual drafts of proposed measures were inserted in the reports, thus calling the specific attention of the legislature to the needs of the department. In 1902, a draft of a more complete child labor law was submitted in the annual report, it being practically the act as finally enacted by the legislature in 1903. In 1903-04 were pro- posed (1) a bill to provide for the health, safety, and comfort of employees in manufacturing establishments, mercantile industries, mills,, factories, and workshops, (2) a bill to provide for the sanitation of all food producing establishments, and (3) a bill further to regulate the manufacture of clothing. In 1906 the same three proposals were again the subject of comment and along therewith were submitted more complete drafts of the measures suggested. In 1906, the enact- n^ent of the following laws was urged by the factory inspector : ( 1 ) (?\ ^&^ ^^ provide for the health, safety, and comfort of employees.. U) An act to provide for the sanitation of food-producing establish- ments. (3) An act to protect persons engaged in construction, repair- ing, alteration, removal of buildings, bridges, and viaducts. (4) A new sweat-shop law. (5) An act to regulate the manufacture, hand- ing and storage of high explosives. (6) An act to provide for low ater alarms on steam boilers. (7) An act to empower the factory spector to secure information from various businesses. (8) An act provide for better fire inspection. (9) An act to protect the public 496 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 497 :, w >{; '■ from fires in theaters. (10) An act prescribing the manner of con- struction of theaters, etc. (11) An act to regulate the construction and maintenances of tenements, lodging and boarding houses. (12) An act to provide for the complete reorganization of the department, of factory inspection. (13) An act calling for the appointment of a commission to investigate occupational diseases. Acting upon the recommendations of the State factory inspector, the Legislature in 1907 passed an act which effected a reorganization of the department, enlarged its powers and increased the general scope of its activity. At the same session of the legislature the com- mission for the study of occupational diseases and the commission to investigate the needs for further providing for the health, comfort and safety of employes were created. The acts providing for the pro- tection of employees engaged in structural work, and relating to butter- ine and ice cream factories were passed, and their enforcement vested in the department of factory inspection. In his report for 1908, the chief inspector calls attention to his proposed building inspection lav/, comments upon the work of the commission on occupational diseases and upon the work done by his department in securing the appointment of the industrial commission. In a very general way the above summary shows the work of the department of state factory inspection along the line of recommenda- tion, both as regards an extension of the powers of the State to authorize inspections and to enforce regulations for the general pro- tection of the laboring classes and of the public, and as regards the general equipment and maintenance of the administrative machinery necessary for the proper enforcement of labor laws. Under the sec- tions dealing in detail with each of the laws en forcible by the factory inspection department will be found short statements dealing with the further contents of the reports. Following is a list of the principal laws, the enforcement of which is committed to the department of factory inspection : Act to regulate manufacture of clothing 1893 Act to provide for use of blowers on metal polishing machines. . . . 1897 Child labor law 1897 Child labor law 1903 Act providing for inspection of butterine and ice cream factories. 1907 Act providing for protection of laborers engaged in structural work 1907 Act to provide for health, safety, and comfort of employees 1909 Act limiting the hours of labor for women 1909 and amendment thereto of 1911 Act providing for protection from occupational diseases ':1911 Act providing for wash rooms in certain employments 1913 POWERS AND DUTIES UNDER PARTICULAR STATUTES. Act to regulate the manufacture of clothing, i8gs- This act pro- vides that if the State factory inspector or city boards of health Tma evidence of infectious or contagious diseases present in any workshop or in goods manufactured here or transported to this State, or if the inspector or boards shall find said shops in an unheal thful condition, etc., the inspector or boards shall issue such order or orders as the public health shall require. Any person occupying or controlling a workshop is required to notify the city board of health within fifteen days after work begins in such shop, of its location, the nature of work, and the number of persons employed therein. City boards of health are empowered to condemn and destroy goods made under unheal thful conditions, or unfit for use, when such conditions are found by the board of health itself or reported to it by the factory inspector. The first report of the State factory inspector in 1893 gives an account of inspections made under this act as does likewise the report of 1895. The report for 1912-13 (in manuscript) contains a chapter devoted to this act. The division of power between the factory inspector's office and local boards of health makes difficulty in the enforcement of this act. Upon inspection, goods are found which may be condemned under the law, but such goods are usually removed by their owners before action is taken by the local boards of health, and no penalty is im- posed for such removal. The garment workers' law is also defective in that it enumerates twelve types of shops (or of work) subject to its terms, but does not cover the whole subject of work done under sweat-shop or other undesirable conditions. For example, the factory inspector's office calls attention to the fact that it does not cover work on neckwear, gloves, caps, mittens, garters, and gaiters. For this reason it has been necessary, in order to make inspections of home work, to construe home work as being done in workshops coming under the health, safety, and comfort act of 1909, and inspect under the authority granted by that act. , Act to compel use of blowers on metal polishing machines, i8^2 In general this act lays down specific requirements concerning the use of emery wheels, but from its provisions are exempted grinding machines upon which water is used at the point of grinding contact, and small shops employing not more than one man. It contains pro- visions as to the manner in which each wheel is to be fitted into hoods, provision concerning blowers and suction pipes, their construction, at- tachment, etc. Concurrently with the sheriff, constables, and prose- cuting attorneys, the state factory inspector is charged with the duty (upon his receiving notice in writing signed by any person having knowledge of such facts, accompanied by the sum of one dollar, that any factory or workshop is not provided with such appliances as re- quired by the act) to visit and inspect such place, and if violations of the law are found it is his duty to prosecute therefor. The reports of the department dealing with the administration of the above act show the name of the firm, its location, number of men employed, number of wheels used, number of wheels unprotected, number of wheels exempt, date of inspection, actual orders issued w^th the time given and date expired, name of the inspector and brief remarks con- cerning the general condition of the establishment inspected. In 1909, 1/2 inspections were made in Chicago and 227 in establishments out- side of Chicago. For the year 1911-12, 235 inspections were made m >>:.,.. 498 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 499 illlj ?r 1 1'. 1 ■1. 1 1 r t f i 1 \ \ 1 in Chicago, and 25 outside of Chicago. For the year 1912-13, 71 inspections were made in Chicago and 39 outside. With reference to the success of the department in the enforcement of this act, the state factory inspector, in his report for 1909, said: "It is seldom now that our inspectors find a shop where metal polishing is done on an extensive scale that there is not a strict compliance with the letter and spirit of -the law." It will be noticed that the act confers concurrent powers upon state's attorneys, sheriffs and constables to enforce the act. No statement is made in the reports concerning the relation with local authorities nor do the tables of statistics showing the general results of inspections, contain any information submitted by these local authorities. The report for 1909 shows that 227 in- spections of metal polishing trades were made outside the city of Chicago in that year. The number of cities is not shown. Among the cities for which the report contains no reference to inspections arc East St. Louis, Peoria, Aurora, Cairo and Bloomington. The chief State factory inspector says that no use has been made of the provision of law with reference to complaints in writing ac- companied by the sum of one dollar. Inspections are made just as if an initial duty to make them were imposed by the terms of the Uw. Child Labor Law. There are three separate statutes dealing with the subject of child labor. In 1893, in the act to regulate the manu- facture of clothing and wearing apparel is contained a section which provides that no child under fourteen (14) years of age shall be em- ployed in any manufacturing establishment, factory or workshop with- in the state ; that a register be kept by any person who employs chil- dren between the ages of fourteen (14) and sixteen (16) in which is to be recorded the name, birthplace, and place of residence of every such child; that an afifidavit as to age, date and place of birth made by parent or guardian of every child between fourteen and sixteen (or by the child if there is no parent or guardian) shall be required before it shall be lawful for such child to work. The register and certificates were open to inspection, upon demand, by the in- spector or his assistants. The section further provides that the factory inspector may demand a certificate of physical fitness from a regular physician in the case of children who appear to him physically unable to perform the labor at which they may be engaged, and may pro- hibit the employment of any minor unable to furnish such a certi- ficate. This act also provides that in every room where children under sixteen (16) are employed shall be kept a list of their names, ages and places of residence. This act applied only to children employed in manufacturing establishments, factories, and workshops. In 1897 in the "act to regulate the employment of children" it is provided that no child under fourteen (14) shall be allowed to work for wages in gainful occupation in any mercantile institution, store, office, laundry, manufacturing establishment, factory, or workshop. Registers and affidavits of parents or guardians (or of child without parent or guardian) are required as in the previous act; the list of persons under sixteen (16) is likewise required to be posted. It »s further provided, and this section is entirely new, that sixty (60) hours per week and ten (10) hours per day shall be the maximum number of hours during which such persons may be legally employed. A prohibition is also placed upon the employment of a child under sixteen (16) years of age in any extra-hazardous employment whereby its life or limb, or its health is likely to be injured, or its morals may be depraved. An amendment of 1901 further provided that all establishments subject to factory inspection where girls and women are employed shall be provided with suitable seats for the use of the girls and women, and that they shall be permitted to use such seats when not necessarily engaged in their active duties. The state factory inspector, in each of the above acts, is charged with the enforcement of its provisions, and an amendment of 1901 imposed penalties for any obstruction of factory inspectors in the performance of their duties under the act of 1897. With these stat- utes in force, the legislature in 1903, went into the subject of child labor again and enacted a law much more complete in its provisions, for the most part covering the* same ground as did the previous acts. This act expressly repeals the defective child labor act of 1891, but repeals only such parts of other acts as are in conflict with the en- actment of 1903. The duties of the department of factory inspection thereunder are as follows: 1. Duty to visit all mercantile institutions, offices, laundries, manu- facturing establishments, bowling alleys, theaters, concert halls and places of amusement, factories, or workshops, and all other places where minors are or may be employed in this State and ascertain whether any minors are employed contrary to the provisions of the act. 2. The inspectors may require that age and school certificates, and all lists of minors employed in such factories, workshops, mercantile institutions, and other places where minors are employed, as provided for in this act, shall be produced for their inspection on demand. 3. It is made the special duty of the State Factory Inspector to en- force the provisions of this act and to prosecute all violations of the law, and it is made his duty, and that of his assistants and deputies to visit and inspect at all reasonable times and as often as possible all places covered by the act. By the last section referred to it is made the special duty of the inspector to enforce the provisions of this act. In general these pro- visions are as follows: 1. Section one provides that no child under fourteen (14) shall be permitted to work at any gainful occupation in any theater, concert hall or place of amusement where intoxicating liquors are sold, or in any mercantile institution, store, office, hotel, laundry, manufacturing establishment, bowling alley, passenger or freight elevator, factory or vi'orkshop, or as a messenger or driver therefor in this state. 2. That no child under fourteen (14) shall be employed at any work for wages during any portion of any month when the public any one day. This last provision repeals the similar one in the act of and no child shall be allowed to work more than eight (8) hours in schools are in session, nor employed before 7 A. M. or after 6 P. M. f ti 500 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 1897 winch specifies that the (10) hours shall be the maximum per day. Ihis provision with respect to children under fourteen (H") is supplemented by Section 10 of the act which forbids labor by children under sixteen (16) more than forty-eight hours in one week or eight («) hours a day, or before seven in the morning or after seven in the evening. Notices of such hours are to be furnished by the State Fac- l7ed ^^^*''°'' *"'' ^^^^ ^°^^^'^ '" ^''^"^ ■"""'^ '^^^''^ '"'""'■^ ^""^ ^n'- 3. Section two provides that every person who employs minors ^stl?'=h ' f^"' °c ^°^'*""" (^4) ^"<^ ^i''*"" (16) in the enumerated establishments in Section one (with the exception that no particular designation is made of places where intoxicating liquor is sold) shall keep a register in which shall be recorded the name, age, and place o residence of every such child employed, and shall require of the child the production of an age and school certificate, stating his age, grade rjf °. ' u^\ ^^ ^^" '^""^ ^"^ ^"t« '^^'bly simple sentences; such the inspectSr '"'■'^'^*"' ^° ^^ P'^^^^ on file and to be accessible to •^Section three provides that "wall lists" shall be kept posted in every MfiT J. ""^ ?'"°''l^^'.^^^" ^^^ ^g^« °f fourteen (14) and sixteen (16) are working, showing name, age, and place of residence. fir^lc V'^""-."' ^^i Y''^ *^ requirements of age and school certi- feouirJl?tf'*'°;' of the certificate at end of employment, and with requirements as to schooling. sch^l p^fi"* ^°\^a ^^^ .and school certificate must present a school attendance certificate signed by the teacher, certifying to the chnd ' nn'f ^f '"''""'^' ."""^ ^^^ ("P°" tH« school record) of the an a^e .nd c"t, ? P-^f ^ntation of this school attendance certificate, ksu/d lf.°? "^V*^^^*^ (entitling the child to work) is ordinarii; issued as a matter of course. temifnt^nf Tu°°\ ^^rtificates are to be approved only by the superin- wh^rTth^- '''°°'' "^ ^y ^ P^^^°" authorized by him in writing, or hmrd K^? " "° .S"P«"ntendent, by a person authorized by the school th^t'Ji superintendents or principals of parochial schools have thori^ t?v ^n^" "' superintendents of schools. No person has au- nW 1 ft, PP r <^«rt.ficates for a child who is to enter his own em- F ,tL/ T «"!P'°y °f a concern with which he is connected. Those ^d^S to issue age and school certificates are also authorized to itn^^TfT^u -^^ " *''^ i'"*^ °^ ^^^ school authorities to make provision for the issuance of such certificates. Ucf Tu I ^^^ ^°'' *^ .^^^ ^"^ school certificate is furnished by the wfti, f. ""•?'' ,«r'fi"l« °f birth or baptism, register of birth Th, I^.T" 71'^^ ''^"^' P' ^y '■^^°^'ls of public or parochial schools. ihe oath of the parent is taken in absence of above proof, the oath ;lwf , ^-l *^' •'"''*"''•= °'' ^°""ty court, and the court ma, issue an age certificate. ^..^/^^"'^^w °i*o ^^^ ^""l ^"^""^ certificate is required to be filled out and sent to the State Factory Inspector's office. The employment certificate is issued in the name of, and belongs to, the child. The certificate is produced to and kept on file by the employer, and is sur- 501 rendered to the child when he leaves the employment. If not claimed by the child within thirty days it is to be returned to the issuing school authority. In case a child cannot read and write legibly, the employer is re- quired to keep a list of such children under sixteen (16) who are not attending night school, for production, on demand by the inspector. In case of children between fourteen (14) and sixteen (16) who can- not read and write simple sentences, there must be a certificate that he or she is regularly attending a public or parochial evening school, and the age and school certificate continues in force just so long as the regular attendance of such child is certified weekly by the teacher or principal of an evening school. The age and school certificate must itself contain a statement of school attendance where the child is illiterate, but contains no provision which makes it necessary that the issuing authority pass in each case upon the question of literacy. Perhaps m most cases the question is not raised when application is made for a certificate. The school certificate is prima facie evidence of the literacy or illiteracy of the child. Where there is no evening school or when no evening schools are in session, no age and school certificate may be approved for a child under sixteen (16) who cannot read at sight and write legibly simple sentences. The child labor act, therefore, expresslv forbids the issu- ance of age and school certificates to illiterate children under sixteen where and when there are no evening schools and unless the children are in attendance upon such schools, but this prohibition is later quali- hed by a proviso that there shall be no employment of such children between the ages of fourteen and sixteen "while a public evening school IS maintained in the town or city in which such minor resides, unless such minor is a regular attendant at such evening school." The act (section 11) forbids the employment of children under sixteen (16) (1) in certain designated occupations (those regarded as hazardous), and closes with a general prohibition of their employ- ment in any other place considered dangerous to their life or limb, or where their health may be injured or morals depraved, thus leaving to the state factory inspector some authority to determine, in the first instance, at any rate, what places come within the terms of the pro- hibition; (2) of children under sixteen (16) in theaters, concert halls, or places of amusement, where intoxicating liquors are sold, and the emp oyment of females under sixteen (16) in any capacity where such employment compels them to remain standing constantly. The act of 1903 provides that upon written complaint to the school Doard or local school authorities that a minor (whose name shall be Riyen in the complaint), is employed contrary to the provisions of mis act It shall be the duty of school authorities to report the same 10 the State Factory Inspector. The foregoing are the principal provisions of the child labor law, ^ith the enforcement of which the department of state factory in- spection is charged. The act of 1897 is, therefore, practically dis- placed by the act of 1903. Likewise the sections of the act of 1893, aeahng with child labor, are also superseded by the last act, except i I 502 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 503 the provision in the act of 1893 conferring authority upon the state factory inspector to require a certificate of physical fitness from a physician in case of children who miy appear to him physically un- able to perform the labor at which they may be engaged. The factory inspector's office, however, did not even know of this provision, and has proceeded on the assumption that the act of 1903 replaces all previous legislation. \ Section 28 of the coal mining act of 1911 forbids labor in mines by any boy under the age of sixteen years, or by any woman or girl whatever. A certificate of age is required, but there is no provision that this certificate shall be open to inspection by the state mine in- spectors, to whom the enforcement of the mining act is committed. Of great importance in connection with the enforcement of the child labor laws are the provisions of the school law with respect to compulsory education. These provisions may be found in sections 274 and 275 of the revised school act of 1909. Every person havine control of any child between the ages of seven and sixteen is required to cause such child to attend some public or private school for the entire time during which the school attended is in session, which shall not be less than six months of actual teaching; several exceptions are made, of which the most important is that as to children between 14 and 16 who are necessarily and lawfully employed during the hours when school is in session. Truant officers are required to be appointed for the enforcement of compulsory school attendance. It may be noted that the public school law makes an exception in favor of children "necessarily and lawfully employed." The word "necessarily" may perhaps be interpreted to excuse from school at- tendance only those children between fourteen and sixteen whose earnings are necessary to the support of themselves and their families. Such an interpretation is, however, not at all clear, and the issuance of age and school certificates can hardly be refused on this ground. If it is intended to confer a discretion as to this matter upon those administering the child labor laws, the intention should be made clear by the language of the statute. As a matter of policy it would be desirable to limit child labor to cases «of economic necessity. On the other hand an official discretion in this matter is very likely not to be used, and if used, may be employed arbitrarily. On the whole it is better to raise the limitations for all children rather than to forbid labor of certain children because of pecuniary considerations. It may be well to mention in this connection, the provisions of an act of 1877, now printed in the Criminal Code, sees. 42a to 42e, deal- ing with the subject of child labor. Section 42a makes it unlawful for any person having the care, custody, or control of any child under the age of fourteen (14) to exhibit, use or employ him in any manner in any exhibition or vocation injurious to the health or dangerous to the life or limb of such child. Section 42b makes it unlawful for any person to employ or exhibit or have in custody any child for the pur- poses prohibited in Section 42a. Section 42d makes it unlawful fo^ any person having the care or custody of any such child wilfujly to cause or permit the life of such child to be endangered, or will- fully to cause or permit such child to be placed in such a situation that its life or health may be injured. General penalties are provided for violations of the act. This legislation was amended in 1895 (Criminal Code, Sees. 492-497) so as to forbid certain other specific exhibitions of children under fourteen (14). Prohibitions in general terms of practices injurious to health or dangerous to life or limb are also included in the act of 1895. These acts are not enforcible by the state factory inspector's office. The reports of the chief state factory inspector show that much attention has been given to the enforcement of the child labor acts, but the reports to 1909 do not give a clear notion of just what has been done, confining themselves mainly to elaborate lists of firms whose establishments were inspected. With the increased duties placed upon the factory inspector to inspect under other laws, the amount of attention devoted to the child labor laws has apparently de- creased. For many of the smaller comimunities the number of in- spections reported under the child labor law seems to be much greater than the number of establishments in which child labor may have been employed. This statement holds for statistics published in the report of the department for December 16, 1910-June 30, 1912, and is further borne out by the statistics in the report (in manuscript) for 1912-13. This suggests a possible doubt as to the value of statements indicating a large total of inspections. In Chicago the issuance of age and school certificates is handled by the public school authorities in co-operation with the factory in- spector, and two clerks from the factory inspector's office devote their time to work connected with the issuance of such certificates. With some of the more important religious denominations in Chicago, co- operative relations have also been established in the issuance of such certificates. But outside of Chicago not a great deal of attention seems to have been paid to relations with the schools. Several defects in present legislation may be pointed out: (1) It is easy for a child to obtain an age and school certificate by transferring from a public school to a parochial school, or vice versa, and stating his age as over 14 to the school to which he trans- fers. It is difficult to discover the deceit in such a case. (2) Children between 14 and 16 unable to read and write simple sentences must attend night school while holding certificates enabling them to work. This provision should relate to all children unable to read and write simple sentences in English, but even the present pro- vision is largely unenforced. It would also be desirable to have some test in arithmetic. Perhaps a definite standard of education may be obtained by requiring completion of the fifth grade or its equivalent Each employer should be required to keep on file a separate list of all Illiterate children in his employ. A system of vocational education is essential to supplement the child labor laws. (3) The relations between the schools and the factory inspector should be much closer, especially in view of the fact that visits of inspectors are infrequent outside of Chicago. Instead of being limited \ \ 504 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 505 I i ft i ■fir expressly as to the manner of reporting violations of the child labor law to the factory inspector, the school authorities should be them- fnn^f^ f "^powered and required to prosecute in case of violations com- ing to their attention Some power of inspection should also be vested in the school authorities. vesica ^'^\ ^^9^ factory inspection department has suggested that all school certificates should be issued through its office and that cen - ficates when surrendered should be returned thereto. For Chicago this may be desirable, but if duplicates of the age and school cerfi- hcates for the entire state were sent to the Factory Inspector's office nrnh ifT 'f "^"''^"^ ^^ \^'^ *,^^ ^'"^^ "^^"^^^^ ^o handle them would probably be too great, although, if the state were divided into several large inspection districts, it might be feasable to handle these duplicates at the offices of such mspection districts. But the factory inspection department has not now, and is not likely to have in the near future a sufficient number of inspectors to issue age and school certificates throughout the whole state. In each city or community a record o age and school certificates issued should, however, be kept in some one place and to this place should be sent a report of all certificates whether issued by public or parochial schools.^ Uniform records of these matters should also be required of all schools. .nJL'^r^'^.^^f ^^ ^9^^'^^^^ f«^ both the school and factory inspection authori les to know just where each child is employed. This mav be accomplished by requiring certificates to be issued for work with a particular employer. When the child leaves employment, the employer may be required to return the certificate to the issuing authority The rer ffir^ti "15 t ^^}^ P^^^t^^" co,"ld then be required to obtain a new ot records already on file in the issuing office. An effective enforcement of a child labor law also makes it neces- sary that a record be kept of all cases in which age and school certi- ticates were refused. (5) A desirable change in the law, recommended by the factory mspector s office, is that the age limit for work by girls be in all cases raised to sixteen years. ci,i^M J^^ f atutory provision regarding physical fitness of children shpuld be enforced and should be supplemented by legislation requir- ing a medical certificate of physical fitness in every case as a condi- tion precedent to a child's employment. For legislation of this char- noT^f V ^'^""^ ^Tn^?,^"^ ^^"^ ^^^^^^ Investigation Commission lu \Ju r PP; f^9-3ol. Requirements regarding physical fitness should be enforced by medical inspections of the department of fac- tory inspection, either upon complaint or upon the initiative of the aepartment. It will be necessary to have the school authorities pro- vide for a physical examination of children at the time when age and school certificates are issued. ,, ('') ^^^hasj)een urged that the law should be so amended that the affidavit of parents and the school record should not be accepted as proof of age, m the absence of more satisfactory evidence. This can hardly be done, especially in view of the absence of official records of birth, etc., in this country. If the law is altogether to forbid labor by children between fourteen and sixteen in a large number of cases it should do so directly, not indirectly. It is, of course, desirable, and in time it may be possible to forbid labor before the age of six- teen. To refuse to accept oaths of parents and school records in the absence of other records, would forbid labor between fourteen and sixteen for large elements in the state. Statements of parents and school records should not be accepted without verification. Children under fourteen can to a great extent be prevented from working (even with the present methods of proof of age) if a physical examination is in each case required for a certificate, with the enforcement of a standard in such examination such as can only be met by a normal child of fourteen. This test might well be supplemented by a stricter educational test. (8) The Illinois Act of 1903 (sec. 1) forbids employment of children under fourteen at gainful occupations in certain enumerated establishments. The enumeration seems rather complete but may not include everything. The act continues by prohibiting employment of children under fourteen for wages or other compensation during any portion of any month when the public schools are in session, and by regulating the hours of labor of children under fourteen. The act itself, therefore, expressly recognizes the legality of some gainful labor by children under fourteen w^hen the public schools are not in session. Yet the law does not require age and school certificates, reg- isters, etc., for children under fourteen employed during vacation. This may make some difficulty in the enforcement of the child labor act when the schools are not in session. Butterine and ice cream inspection act. The object of the butterine and ice cream inspection law enacted in 1907 is to make it compulsory upon all manufacturers of butterine and ice cream to maintain their establishments in a thoroughly healthful and sanitary condition. To this end the act lays down specific regulations as to drainage, plumb- ing, ventilation, foundations and construction. Penalties are provided in the act for any violation of its provisions and it is expressly made the duty of state factory inspectors to cause an inspection of all such manufacturies ; to order alterations to be made, and to order a general compliance with the specific rules of the act, that the building may he put in a condition conducive to proper and healthful sanitation, the factory inspector may require the whitewashing of walls at regu- lar mtervals, and may also require that the woodwork be painted, u IS made the duty of the factory inspector to issue a certificate to such manufacturies as are found to have complied with all the pro- visions of the act. The report of the factory inspection department for 1911-12 in- dicated 46 inspections under this law, none of which were in Chicago. A here were no inspections in Springfield, Aurora, Champaign and numerous other cities. Such inspections as were made were probably incidental and more or less haphazard. The function here undertaken / Fl^^ ^"^ belonging to local boards of health. The powers con- erred by this act should be transferred as soon as possible to the i ' ■ 1 i 1 1 1 506 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 507 I State food commissioner, who now has autliority to inspect and actually inspects establishments of the same character. The factory inspection office has enough to do within its own proper field, and at present there is a duplication of function. The chief state factory inspector agrees that the duties under this law should be transferred. Act for the protection of employees engaged in structural work. This act passed in 1907, provides in general for the protection and safety of persons engaged in the construction, alteration, repairing, or removal of buildings, bridges, viaducts and other structures. As in the case with other acts the enforcement of which is committed to the departnient. of factory inspection, the act lays down specific re- quirements in detail and directly imposes the primary obligation upon the manufacturer or other person covered by the act. It is the duty of the state factory inspector to make inspections and to say whether or not the specific requirements of the act have been complied with. 1 he act for protection in structural work contains provisions relating to the construction of scaffolds, hoists, cranes, safety rails, etc.; how joists are to be supported, the weight to be borne, floors to be con- structed and machines elevated, etc. It is the duty of all contractors and owners when constructing build- ings or bridges to know the provisions of this act and to comply therewith. From the wording of this statute, it is not made the ex- press duty of the state factory inspector to make inspections of all buildings, bridges, etc., but the act provides that whenever it shall come to the notice of the state factory inspector that any buildings, etc., in process of construction, are unsafe or liable to prove dangerous to the life or limb of any person, it shall become his duty immediately to cause an inspection to be made. If, after examination, it is found that the provisions of the act have not been complied with, it is the duty of the inspector to notify the person responsible and to require him to alter or reconstruct such parts of the building as may be necessary to avoid danger. If a building inder construction is more than five stories high, no material used is to be hoisted over the street unless the street is barricaded. ^ The chief officer of the city, town or village and the state factory inspector are charged with the enforcement of the act. In all cities of the state where a local building commissioner is provided for by law, he IS charged with enforcement of the provisions of this act, and in case of his failure, neglect or refusal so to do, the state factory inpector shall, pursuant to the terms of this act, enforce the provisions thereof. The reports of the state factory inspector dealing with this act do not show that the local authorities thus designated have actually participated in the enforcement of the act. If they have, and their reports have been sent to the state inspector, no tables are shown which would separate the work done by them and the work done by the state department. Nor is any statement made in the reports tend- ing to show any relation between the factory inspection department and local authorities in the enforcement of this act. At present there are no relations in the enforcement of this act between the factory inspector's office and the local authorities. Any person injured has a right of action for damages occasioned by a wilful failure or refusal to comply with the provisions of this act. Tables of the factory inspector's report for 1909 show the number of inspections made, the location of each structure, the name of the owner and contracting architect, and the nature of the work going on. One table shows the kind of materials used in each building inspected, the orders issued, and states whether or not violations were found. In still another table the names of the same structures are again re- peated, with the following data : Size of the building or bridge, num- not the condition of the structure was approved by the inspector, and remarks. Under the head of remarks the table shows whether or not the condition of the structure was approved by the inspector, and if not the table shows the specific defects in the manner of construc- tion noted by the inspector, and the time when he made the inspection. The number of prosecutions and violations are also shown. It may be noted that practically all of the reports dealing with the adminis- tration of this measure had to do with inspections made in Chicago and Cook County. In the report of 1909, only three inspections are noted as having been made outside of the city of Chicago; one at Chicago Heights, one in Argo and one at Milwaukee and Addison Avenues. The report covering the period from December 16, 1910 to June 30, 1912 shows twelve inspections outside of Cook County, of which one was at Springfield and two at Decatur; the other nine Inspections noted as outside of Cook County were not so. The report of 1912-1913 (in manuscript) shows that no inspections under this law were made outside of Chicago. As administered this law is very little more than a supplement to the building ordinances of Chicago, and would lead in that city to duplicate inspections for practically the sa-Tjc purposes. The law should be more generally enforced or the duties under it transferred from the department of factory inspec- tion. Health, Safety and Comfort of Employees. This act, adopted in 1909, but in effect Jan. 1, 1910, provides in general for the health, safety and comfort of employes in all factories, mercantile establish- ments, mills and workshops in this state. It goes into great detail in providing for the maintenance of safe conditions in these establish- ments. Provisions are found on the following subjects: All power driven machinery and numerous other dangerous appliances, to be located so as not to be dangerous to employes, and to be properly enclosed, fenced or otherwise protected; all dangerous places in or about mercantile establishments, factories, mills or workshops to be properly enclosed, fenced or otherwise guarded ; no machine may be used where it is known to be dangerously defective and no repairs arc to be made when the machine is in motion. The act provides when safeguards may be removed; that certain means be provided for disconnecting power; for disengaging devices; power controlling devices; devices where machines arc arranged in groups; additional safeguards and safety devices on hoisting ways; and has provisions dealing with tampering with machines, and with traversing carriages. 508 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 509 To secure proper healthful conditions in such places the act pro- vides that employes are not to take food into certain factories. (This matter is now more fully covered by section 7 of the occupational diseases act of 1911.) Seats for female employees must be provided to be used when such employes are not necessarily engaged in their active duties. There are provisions requiring the temperature to be equable; provisions relating to ventilation and the amount of air space necessary, provisions requiring that noxious fumes and gases be removed (now more fully covered by section 8 of occupational diseases act), that all refuse be properly disposed of, that adequate means of escape in case of fire be made, provisions dealing with the proper construction of doors, stairways, floors, passageways, water closets, washing facilities, dressing rooms and lights. It is specifically provided that the requirements of this act shall not repeal the act of 1897 relating to plumbing or any local ordinances requiring standards equal or superior to those ^ of this act. It is the duty in the first instance of every person or corporation to which the act applies to carry out all its provisions, and to make all the changes and additions necessary therefor. To insure the en- forcement of the act it is expressly made the duty of the state factory inspection department to enforce all its provisions and to prosecute all violations of the same. It is the duty of the state factory inspector or his assistants to visit and inspect at all reasonable times all factories, mercantile establishments, mills and workshops to which the act applies. Obstructing an inspector is punishable by fine. It is also the duty of inspectors to give proper notice to the person owning or managing such establishment of any violation of the. act. Power is conferred upon the department to order unsafe conditions in factories to be remedied ; and when such order is not carried out, it is then the duty of the state factory inspector to prosecute. When changes comply- ing with the laws have been made the same shall not be disturbed for twelve months as to location of machines or as to ventilation. With the idea of providing for the dissemination of general knowl- edge of this act, it is made the duty of the chief inspector to keep on hand copies of its provisions and to supply requests for the same inso- far as it is necessary to carry out this purpose. In order that the workmen may be informed of the provisions of the act, it is also made the duty of the state factory inspector to prepare a notice cover- ing the salient features thereof and to have the same posted in a conspicuous place in every office and work room of every establish- ment covered by its provisions. While charged primarily with the enforcement of the act, the state factory inspector is under certain conditions authorized to accept a report of inspections conducted by city authorities who act under city ordinances, in lieu of inspections required by this act. To this extent is the department of state factory inspection related to the local authorities. No close relations have been established between the factory inspection department and local authorities and no reports of inspections have been made by the local authorities. Hours of Labor of Women. An act of 1893 limiting the hours of labor of females in any factory or workshop to eight hours a day was declared unconstitutional in Ritchie v. People, 155 111., 98. The statute enacted in 1909 forbade the employment of females more than ten hours per day in mechanical establishments, factories or laundries, but as amended in 1911 it applies to the following establishments: Me- chanical or mercantile establishments, factories, laundries, hotels, restaurants, telegraph and telephone offices, places of amusement, ex- press, transportation or public utility companies, common carriers, public institutions, incorporated or unincorporated. The act, as amended in 1911, also provides that all employers shall keep a time book showing for each day the hours during which each and every female is employed. The department of factory inspection is expressly charged with the enforcement of the act. The state fac- tory inspector is not expressly charged with the duty of making in- spections, but practically all of the establishments covered by this act, are included in other acts by authority of which the factory inspector is required to make inspections. However, the absence of express authority to inspect and of penalties for obstructing inspection has made some trouble. The chief factory inspector also calls attention to the fact that the only penalty imposed for the violation of the act is that of a fine, without an alternative of imprisonment. It would also be desirable to make clearer the criminal liability for a false time record, and to provide a penalty for such falsification equal to that imposed for violating the provision with respect to hours of labor. Protection from Occupational Diseases. The broad requirement of this act, adopted in 1911, is to compel all employers of labor to adopt and provide reasonable and approved devices, means and methods for the prevention of industrial diseases. In addition to this general re- quirement, the act designates certain processes which are deemed essentially dangerous. With reference to these specifically designated industries the act goes farther and lays down certain prohibitions and more detailed requirements. For example, it is provided that clothing shall be provided for employees while at work, that suitable provision shall be made for employes to take their meals, for dressing rooms and lavatories, for certain devices necessary for carrying off poisonous fumes, for cleaning of flues and scrubbing of floors. All receptacles are to be covered, refuse removed, etc. Such is the nature of the substantive provisions of the act. The act is directed to the individual employers themselves. They are required, under penalty, to conform to the specific rules laid down |n the statute. To secure the enforcement of the act, however, it IS provided, with reference to those industries expressly designated, that every such employer therein, shall himself cause all employees in i^is establishment who come in contact with poisonous agencies or injurious processes to be examined by a competent physician once each nionth for the purpose of ascertaining whether any employe is afflicted l^ith any industrial disease due to the character of the work in which le may be engaged. After such examination the physician is required IJ^ make a report of each exami-nation made, in which he must show ]^' name, address, sex and age of each employee, the name of his em- ployer, the nature of the disease found, if any, the probable extent 510 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 511 and duration thereof and the last place of employment. This report is then to be sent to the state board of health, and the board of health is required to transmit a copy to the department of factory inspec- tion. The act imposes upon the department of factory inspection the duty of inspecting all places covered by its provisions. It is the duty of the state factory inspector to determine whether there is any violation, and if so, then to order the employer to install any approved device, means or method which in his judgment is reasonably necessary to protect the health of the employees therein. Furthermore, and more generally, if the factory inspector finds any industrial disease or if such disease is called to his attention by the state board of health then if, in the opinion of the inspector, such disease is caused by a failure on the part of the employer to adopt reasonable appliances, means and methods which are known to be reasonably adequate and sufficient to prevent the contraction or continuance of any such disease or illness, it is his duty to order the employer to install adequate and approved appliances, means and methods. The information regarding unhealthful conditions is therefore de- rived through two separate channels: (1) from the copies of physi- cians' reports made to the state board of health and furnished by this body to the department of factory inspection; (2) from personal inspection of the factory inspector. It rests with the factory inspector to determine, in each case, whether or not the existence of the disease is due to failure on the part of the employer to provide appliances, means and methods which are supposed to prevent such disease. It is then his duty to order the changes which in his judgment are reason- ably necessary to protect the health of employees. Additional requirements are made of the factory inspector such as the duty of preparing notices of the salient feature* of the act and of furnishing such to employers, and the duty to see that such notices are kept posted by employers. The act penalizes obstruction of in- spectors and also provides for prosecution of violations by the state department of factory inspection. There is provision also for a right of action by the employee for injury or death in case of "wilful viola- tion of the act" or "wailful failure to comply with any of its provisions." The acting secretary of the state board of health and the chief state factory inspector both agree that no advantage is derived from having reports under the occupational diseases act go first to the board of health. This arrangement occasions delay and should be changed so that physicians' reports may go directly to the factory inspector's office. The state factory inspector's office is of the opinion that no penalty Is provided by the occupational diseases act for false- reports by phy- sicians, but this is apparently not the case. The difficulty is that a physician is required to report disease if found and a penalty for false reporting, no matter how specific, could not effectively require con- scientious reporting. The difficulty discovered in the enforcement of the act is that of perfunctory reporting. Physicians under contract make examinations of workmen which are of too casual a nature to disclose the presence of an occupational disease, and report that no such disease was found. There may have been no false reporting, the specific terms of the act have probably been complied w4th, yet the purpose of the act is defeated. Something may be accomplished by inspections and examinations, upon complaiyt or otherwise, by the medical officers of the factory inspection department. Other Acts enforcible by the Factory Inspector s Office. The wash room act of 1913 (Laws, 1913, p. 359) is committed for enforcement to mine inspectors, factory inspectors and other inspectors. The factory inspector's duties are purely statutory, and he, there- fore has no authority to enforce legislation not expressly committed to his office.^ The duty of enforcing certain legislation is not committed to the department of factory inspection, e. g., the act of 1913 regard- ing semi-monthly payments of wages by corporations (Laws, 1913, p. 358) ; the act of 1913 for the protection of chauffeurs of automo- biles or auto-trucks (Laws, 1913, p. 334) ; the act of 1913 regarding mason's examining boards in cities of over 15,000 (Laws, 1913, p. 356) ; the child labor provisions of the criminal code; the specific pro- visions in the mining law regarding labor by women and children. The provisions of the mining act are enforcible by mine inspectors, but the other laws here enumerated are enforcible only by criminal penalties. Relation of Department of Factory Inspection to other State Offices. The department of factory inspection is directly responsible only to the chief executive. The chief inspector, his assistant and deputies are appointed by the Governor. The annual report of the chief in- pector is made to the Governor. The Governor may require special investigations into the conditions of labor in the state to be made by the department. The chief inspector's duties are ex- pressly provided for and it is his duty to see to it that all the pro- visions of the acts discussed above have been complied with. If the provisions of these acts are not observed, then the resultant duty is imposed upon him of prosecuting all violations and issuing all orders necessary to compel an observance of the law. But in the performance of all these duties he owes no duty to the other state departments. There is some connection, however, between the department of factory inspection and the state board of health, in the enforcement of the act dealing with occupational. diseases. Primarily the enforce- inent of this act is committed to the state factory inspector. Inspec- tions must be made by him, the necessary orders issued, and violations prosecuted. But monthly medical examinations are required as to em- ployees in certain enumerated industries, and the reports of such ex- aminations are first transmitted to the state board of health. The act then provides that a copy of such report is to be sent to the de- partment of factory inspection. Section twelve makes it the duty of ^ne state factory inspector, when notified of the existence of any in- dustrial disease by the state board of health, to order a compliance With this act. With this exception, the functions of this department are performed independently of other authorities having to do with the enforcement of labor legislation. (1) Beport of Attorney General, 1912, p. 1067. ' j» 512 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 513 If It * Relation of the Department of Factory Inspection to Local Authorities. For the most part also the department of factory inspection con- ducts Its work independently of, and without reliance upon assist- ance from local authorities. Its functions fall naturally under three general heads, (l)that of making inspections, (2) issuing orders to compel the observance of the requirements specifically set out in the separate statutes, and (3) prosecutions for violation. Upon the thirty deputy mspectors, in the first instance, falls the duty of performing these three functions, under the guidance and supervision, of course, of the chief state factory inspector and his assistant. In several cases, however, powers with respect to labor legislation are exercised by local authorities. Under the child labor law the superintendents of schools, and in the absence of a superintendent, then the school board, are re- quired to approve age and school certificates of children between the ages of 14 and 16. Under the act to regulate the manufacture of cloth^ ing the powers granted to the state factory inspector are also granted to city boards of health. In the enforcement of the act they exercise concurrent power, with the single exception that city boards of health are authorized, in certain instances, summarily to destroy clothing found by them to be infected with contagious diseases. In like manner, under the act requiring the use of blowers on metal polishing wheels, all sheriflfs, constables and states' attorneys may ex- ercise the same power as does the state factory inspector. Under the act providing for the protection of employees engaged in structural work local authorities in cities, towns and villages, charged with the en- forcement of the building laws, are granted the same power as is con- ferred upon the state factory inspector. In the last two cases, very little direct relation between the two authorities exists. Under the act providing for the health, safety and comfort of em- ployees, the relation under the law between the department and local authorities is more direct. The provision is as follows : Whenever any inspection is required to be made bv the ordinances of any city, town or village of a standard equal to that of this act and the inspection required by such ordinances has been made, then and in every such case such inspection shall be accepted by the chief state tactory inspector as a compliance in that respect with the provisions ot this act ; and it shall be the duty of the person for whom such inspec- tion has been made to furnish the chief state factory inspector with a copy of the report of the inspection made under such ordinances. The effect of this provision seems to be, therefore, to relieve the state factory inspector from his obligation to make inspections of establishments which have already been inspected by local authorities. Nothing is said as to the general character or nature of the report which is to be sent to the factory inspection department, nor as to who shall determine whether or not the inspection conducted by the local authority is equal to that required by the statute. As a matter of fact this provision for the accep^-nce of local inspections is entirely dis- regarded in practice, although with respect to workshops there has in the past been some acceptance of sanitary inspections made by tiic Chicago department of health. ^ Much more effective service might be rendered and some duplica- tion of work avoided by a close co-operation of the factory inspection department w4th the city governments in the larger cities. This is especially true with reference to Chicago. Under the bureau of sani- tation of the Chicago department of health there is an inspection of workshops which duplicates to a large extent that required of the state department of factory inspection under the garment workers' act (1893) and the health, safety and comfort act (1909). Under the Chicago department of buildings there is an inspection which dupli- cates that required by the structural workers' act (1907). Under the fire prevention bureau of the Chicago fire department there is an in- spection of buildings which in part duplicates that required for the enforcement of the health, safety and comfort act (Sees. 14, 15). The enforcement of the fire escape act of 1899 is expressly vested in local authorities. It may be of value to provide, as is done in New York, that municipal ordinances in the field of labor may also be enforced by the state, labor department. The further step may also well be taken of permitting local authorities, under authorization from the state labor department, to exercise the powers of state inspectors. General survey of organisation and work. Reference has been made to the fact that, under the law, the factory inspector is required to divide the state into inspection districts, and to assign inspectors to such districts. According to the present chief factory inspector there never has been any such districting, afthough for Chicago there is an informal districting by wards in the absence of special assignments to inspectors. Ordinarily no inspector is assigned to inspect territory in his own senatorial district. The State factory inpector says that on an average, ten inspectors are at work in the territory outside of the metropolitan district of Chicago, although in February, 1914, there were only seven. During about four months of each year, when the large Chicago establish- ments are being inspected, all inspectors are called to the Chicago office. The inspection force is organized on the line of specialized function rather than by geographical divisions. There are inspectors who have specialized on machinery, child labor, structural work, ventilation, etc. Three types of inspection work are committed to the department, (1) one highly technical, requiring a good knowledge of machinery, (2) another requiring medical or chemical knowledge, and (3) a third requiring not so much technical knowledge as general ability, to this class belonging inspection under the child labor and women's labor acts.^ Some degree of specialization of function is necessary therefore, in order to accomplish the best results, but all types of in- spection are perhaps in most cases made by the same inspector, es- pecially for the smaller establishments. The reports of the factory inspection department have occasionally . nnnted a specimen of a report of an inspection. Such specimens, cov- ering in detail every point which may possibly give rise to danger ?r violation of the law, are misleading. With the present force of Tkr^u^^^^ it is out of the question to inspect frequently all of the es- tablishments of the State, and many are probably not inspected at all. ^'^pections when made must necessarily be more or less casual, ex- ept as respects the more dangerous machinery and the more dangerous *-^..! 514 EFFICIENCY AND ECONOMY COMMITTEE. processes. Where improper conditions are found a reinspection is made in order to discover whether the orders of the department have been carried out. Perhaps it may be v^orth while here to call attention to the fact that legislation since 1907 has at least trebled the work placed upon the department of factory inspection, while during the same period the number of deputy inspectors has been increased from 25 to 30. It has been impossible to enforce effectively all labor legislation for the whole state, and the tendency to some extent at least has been to devote attention primarily to Chicago. Under the structural worker's law, for example, no inspections were made outside of Chicago in 1912-13. This is an exceptional case. Most of the legislation enforced by the department of factory in- spection places a positive duty upon the employer, and makes him liable in damages to a workman injured through non-compliance with the law, but this burden is not sufficient to compel compliance. (Per- haps if all legislation permited recovery of treble damages in such cases, this would be a deterrent, but such a plan is objectionable. The workmen's compensation law imposes no greater burden upon employers under it where a workman is injured because of the em- ployer's non-compliance with statutory safety requirements.) In many, if not most cases, the employer will wait until action is taken by the inspector. This is especially apt to be true where, as under the oc- cupational diseases act, a general duty is imposed upon industries other than those enumerated as especially dangerous to health, with a duty upon the inspector in certain cases to require devices "which are known to be reasonably adequate and sufficient." (Sec. 12 of act.) In a recent number of the American Labor Legislation Review^ it was said that "An army of the most skilled factory inspectors would be totally unable to enforce every provision of the factory laws. More- over, few inspectors, even with previous technical training, would be able intelligently to pass upon proper provisions for safety, comfort and health in a succession of establishments including processes and danger points so varied as those to be found in the manufacture of steel and silk, carpets and chemicals, shirt waists and shovels, or in the construction of skyscrapers and subways." In terms the laws of Illinois may be satisfactory, but the terms of the law alone amount to little. In order effectively to enforce safe- guards in industry it is necessary : (1) To have an effective reporting of accidents and occupational diseases, so that the danger points of industry may be easily detected. (2) To penalize in some way the occurrence of preventible acci- dents. This may be done by imposing a heavy liability upon the em- ployer in favor of the injured party, or (in states which have adopted an industrial insurance plan of workmen's compensation) by varying the rates of insurance in accordance with the number of accidents in any particular establishment. (3) To make a greater use, if possible, of inspections upon com- plaint. Some inspections are now made upon complaints (which are (2)" Dec«mb«r, 1013, p. 44. LABOR AND MINING. 515 usually anonymous) coming to the office, but the number of such inspections is relatively small. (4) To have a closer co-operation of the factory inspection depart- ment with local authorities, and with other state inspection services. For example, the enforcement of the wash room act of 1913 is com- mitted to mine inspectors and to factory inspectors; and one of the 1913 amendments to the coal mining act provides that mine inspectors "shall hold a certificate from any national or state commission or bureau or other recognized agency." With respect to local co-opera- tion much may be done in Chicago with respect to workshop and building inspection, where there is at present a good deal of duplica- tion. (5) To have a scheme of safety rules for each employment worked out by co-operation between employers and employees. Statutory rules are difficult of quick adjustment to the shifting needs of industry, and cannot be carefully adapted to the conditions of each field of employ- ment. Moreover, the education of employers and employees is the most essential step in the enforcement of safety requirements, and this edu- cation can best be accomplished by a co-operative working out of safety rules by those actually engaged in the industry itself. However, a larger force of inspectors is also necessary if the factory laws are to be effectively enforced, and there must be some assur- ance that the inspectors are competent and receive adequate salaries. A salary of $1,200 is inadequate, and appointment by the Governor is not a satisfactory means of obtaining competent inspectors. If higher salaries for inspectors are provided, there should be some grad- ing of salaries so that promotion in the service may come as a result of efficient work. The reports of the department should indicate the actual work done during each year. The report for 1909 is a bulky volume made up of tables of inspections, which are almost, if not wholly, valueless. Steps have already been taken by the Chief of the Department of Factory Inspection and the Printer Expert to remedy this condition, and the report for 1912-13 (in manuscript) represents a distinct advance. The 1912-13 report does not show, however, for many of the laws, how widely inspections were distributed. A statement of the number of inspections made in Chicago and Cook County and of the number made outside of Cook County does not indicate much as to the en- forcement of factory laws throughout the state at large. (Under some of the laws the distribution of inspections throughout the state is ?iven.) The report for December 16, 1910-June 30, 1912, is a distinct improvement over that for 1909, but the value of a report is, to a '^J"?^ extent diminished by the delay in issuing it. Until the spring of 1914 the latest report of the department of factory inspection in Pnnt was that of 1909. A periodical bulletin has recently been started by the department, and through it infonnation regarding factory in- spection work should be kept fairly well up to date. •In order to enforce the various labor laws committed to it the de- ^Vk?-^"^ of factory inspection should have a complete list of all establishments subject to its inspection, but it has no such list. Nor, apparently, has any careful survey of the state ever been made so as 516 EFFICIENCY AND ECONOMY COMMITTEE. to determine the distribution of various industries subject to inspec- tion. Under the occupational diseases act this is especially necessary if all industries (both those specifically enumerated in the law itself and those generally covered) are in fact brought under the regulations of the act. The garment workers' act of 1893 required persons oc- cupying or controlling a workshop to notify the local boards of health. This statutory provision is still in force but has probably never been complied with. The Chicago ordinances (Chicago Code, 1911, p. 506) require an annual license of workshops, and this requirement, if fully enforced, should result in the obtaining of a complete record of such establishments in Chicago. In New York recent legislation requires the registration of 'factories, and such legislation should be enacted in Illinois. Prosecutions for the violation of factory laws are handled for Chi- cago by the attorney of the factory inspector's office, and outside Chicago prosecutions are managed by the inspectors alone or by the inspectors with the assistance of the state's attorney. The act of 1907, as amended in 1911 (R. S. 1913, Ch. 48, Sec. 77) provides that "it shall be the duty of the state's attorney of the proper county, upon the request of the chief factory inspector or his deputies, to prosecute any violation of the law which it is made the duty of the factory inspector to enforce. And it shall be the duty of the attorney for such department to prosecute, when requested by the chief state factor)' mspector, any infractions or violations of law which are now or mav be hereafter made the duty of the factory inspector to enforce." The salary of the attorney of the department is not high enough to obtain the full time of a competent man. Most violations of the labor statutes are handled by the department without prosecution, and as to several of the laws such a proceeding is expressly provided for. If, upon inspection, a violation of the law is found, instructions are given and compliance therewith required to be had within a given time. Reinspection is later had (although often- times not very promptly) to see if the instructions have been complied with: As to such matters as safeguarding machinery the number of prosecutions is relatively small. So long as the department of factory inspection has its office in Chicago, where there is sufficient work to take the time of all inspect- ors, the rest of the state will necessarily be*somewhat neglected. This results in part from the fact that there is more work than the present force can do, but in part also because the chief inspector has disre- garded the statutory order to divide the state into inspection districts. Some degree of specialization of function among the various deputy inspectors is necessary, but the division of the state outside of Chi- cago into several large inspection districts would probably lead to a better distribution of attention as between Chicago and other parts of the state. For the work under the occupational diseases act and for child labor inspections (if the physical fitness provision is to be enforced) tlie medical side of the factory inspection service should be very much streng thened. (Vd^mT ^^^"'"^"^^y Report, N«w York Factory Investigating Commission, I III. COMMISSIONERS OF LABOR AND BUREAU OF LABOR STATISTICS. Historical Note. The bureau of labor statistics was created by an act of 1879. The board of commissioners of labor, five in number, were appointed by the Governor by and with the advice and consent of the Senate, for a term of two years. Of this number three were required to be manual laborers, the remaining members to be manufacturers or em- ployers of labor in some productive industry. They were to meet an- nually at the State Capitol on the first Monday in September, when they were to organize themselves by electing a president from them- selves and appointing a secretary, who was to hold office for a term of two years or until his successor was appointed, the secretary to have no voice in the deliberations of the board nor to be selected from the Commission. No change has been made in the organization of the body since 1879. The compensation of the commissioners as fixed by the act of 1879 was $5.00 per day for thirty days of each annual session. The secre- tary received $1,200 per year. In 1903 an amendment was passed which increased the salary of the secretary to $2,500 per annum. The board of commissioners of labor was established to control the work of a bureau of labor statistics, and subsequent statutes oftentimes use the terms "commissioners of labor" and "bureau of labor statistics" interchangeably. The permanent work of the bureau of labor sta- tistics is done by the secretary of the board of commissioners of labor. As expressed by the act of 1879, the duties of the board were "to collect, assort, syetematize, and present in biennial report to the Gen- eral Assembly, statistical details relating to all departments of labor in the state, especially in its relation to the commercial, industrial, social, educational, and sanitary conditions of the laboring classes, and to the permanent prosperity of the mechanical, manufacturing, and productive industries of the state." In 1908 the following amendment was added : "It shall be the duty of every employer of labor in this state to aflford to the state com- niissioners of labor or their representative every facility for procuring statistics of wages and conditions of their employees for the purpose of compiling and publishing statistics of labor and of social and in- ustrial conditions within the State as required by law. Any person who shall hinder or obstruct the investigation of the agents of the commissioners or shall neglect or refuse for a period of ten days to ' 518 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 519 I !V'I I, %i I furnish the information called for by the schedules of the commis- sioners as provided above, shall be adjudged guilty of a misdemeanor and be subjected to a fine of $100." In 1909 a new act was passed repealing the act of 1879 and its amendments of 1903 and 1908, but this act in effect only added one clause which imposed new duties upon the board of labor commis- sioners. Before the act of 1909 the duty of the board was "to collect, assort, systematize statistical details in relation to all depart- ments of labor in the state, especially in its relation to the commercial, industrial, social, educational, and sanitary conditions of the laboring classes, and to the permanent prosperity" of the State. That is, the board was concerned primarily with labor conditions. The act ot 1909 extended the duties of the board to include commercial and manufacturing conditions as well. The provision added in 1909 (though in form the entire statute was re-enacted) imposed the duty upon the board to collect, assort, systematize, and present in biennial report to the General Assembly statistical details of the manufacturing and productive industries of the state, "setting forth such details as the local character of the industry, capital, total output, number of people employed and such other details as will give a total presenta- tion of the industrial and commercial condition and progress of the state; provided, that in no case shall statistics thus published be so arranged as to reveal the affairs of any single industrial or commercial concern." Ill addition to the duties thus imposed upon the board by the general act, it has also been concerned with the enforcement of some other acts on the subject of labor. Accident Reports. An act of 1907 requires every employer of laborers to report to the state bureau of labor statistics every serious injury entailing a loss of 30 or more days' time. It is the duty of the State bureau of labor statistics under this act to cause such reports to be made and to pub- lish, at least once each year on or before January 1st, the general re- sults. The subject of accident reports is fully discussed elsewhere in this report. Mines and Mining. • An amendment of 1883 to the coal mining act provided for the appointment of mine inspectors upon the report of a board of ex- aminers selected by the bureau of labor statistics, and also provided for the removal of such inspectors under certaia conditions by the bureau. Annual reports to the bureau were required from inspectors, and the duty of making reports was extended by later amendments. In 1899 the coal mining act was revised and a state mining board created to be appointed by the commissioners of labor. Mine inspec- tion districts were created, whose boundaries might be changed by the commissioners of labor, and under certain conditions mine in- spectors were removable by the commissioners of labor. Each inspect- or was required to submit an annual report to the bureau of labor statistics, and this bureau was required to compile, summarize and publish such reports under the title of the "Annual Coal Report. (This series was begun under the bureau, in 1883.) Supplies were furnished to the inspectors by the Secretary of State upon requisi- tion of the secretary of the bureau of labor statistics. A specific duty was further imposed upon every coal operator to afford facilities to the commissioners of labor for procuring statistics of the wages and conditions of their employes, and penalties were imposed for failing to report to. or obstructing investigations by the commissioners. By an amendment of 1907 the appointment of the State mining board was vested in the Governor, with the advice and consent of the Senate. A complete revision of the mining law was made in 1911, and all the powers and duties before this time vested in the bureau of labor statistics or commissioners of labor under the mining laws were trans- ferred to the state mining board. The reports to the bureau of labor statistics required before 1911 from inspectors and from coal operat- ors now go to the State mining board, and the Annual Coal Report is published by that body. Private Employment Agencies. The enforcement of the act relating to private employment agencies is committed to the State board of commissioners of labor and a special officer known as the chief inspector of private employment agencies. Their duties in respect thereto are fully discussed elsewhere in this report. Free Employment Offices. The bureau of labor statistics is also interested in the enforcement of the act relative to free employment offices. A superintendent, assis- tant superintendent, and one clerk for each of the individual offices are recommended by the commissioners of labor to the Governor who appoints with the consent of the Senate. Weekly reports, and the annual report of the superintendents, must be sent to the bureau of labor statistics. The duties of the superintendents of free employ- ment offices are specified in the act, but the act also provides that the secretary of the bureau of labor statistics may require each superin- tendent to perform other duties in the collection of additional statis- tical and sociological data. Workmen's Compensation Act. Under the act now in force, passed in 1913, an independent body known as the industrial board is created, which has complete charge 01 the administrative features of the act. But, under the act of 1911, relatmg to compensation for accidental injuries, these functions in general were performed by the bureau of labor statistics. Reports of accidents, notices of election not to accept the provisions of the act, rj ^^Ports of all arbitration boards were to be sent to the bureau. Urider the present act, however, the bureau of labor statistics has no duties to perform. Reports of the Bureau of Labor Statistics. to t?^n^^ <^reating the bureau requires a biennial report to be made tne General Assembly, consisting of statistical details relative to all apartments of labor in the State, and by the amendment of 1909, said 520 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 521 report is to include statistical details of manufacturing industries of the State. Under the accident reporting statute of 1907 an annual report of accidents is required to be published. ^ The biennial reports of the bureau deal with a great variety of sub- jects all of which are related in some way to the general condition of the laboring classes. No particular method is specified in the act whereby the bureau is to acquire the information upon which its re- ports are to be based, nor are there any restrictions as to contents of the report, other than the general one, that they shall deal with all the departments of labor in the State. The bureau within these limits is left to act upon its own discretion and in its own way. At first no authority was vested in the bureau to require employers of labor and others to divulge information which was sought. In their report for 1882, the board of labor commissioners called attention to this lack of authority to require the submission of facts relating to labor, but not until 1908 was an amendment added which makes it the duty of employers of labor to afford to the commissioners every facil- ^^^ r §1 nn"^'"^ statistics and makes it a misdemeanor punishable by tine of $100 to hinder or obstruct the obtaining of information or to retuse or neglect to furnish the information called for by the schedule sent out by the commissioners. Nevertheless, during the period from 1879 to 1908 the reports of the T ^fo^n^^""^ ^^^^^ "P^" information gained from primary sources, m l«/y letters were sent out to all the members of the General As- sembly and to all county and city clerks requesting them to send in to the bureau the names and addresses of a few residents of their re- spective townships who were working for wages and also the names ot a few employers of labor. Twelve thousand names of workmen were sent in and to each individual workman so named the bureau sent a circular containing a variety of questions relating to wages, hours ot work, family conditions, cost of living, manner of living, and gen- eral changes desired by the workmen. Four thousand replies were sent in and based upon these and upon the replies received from manu- tacturing concerns, the first report was issued. The biennial reports of the bureau of labor statistics as a series have been of distinct value, although the earlier work of the bureau was perhaps of more value than that done recently. The bureau regarded itse f as a general statistical bureau. Its reports of 1894 and 1896 dealt with taxation, the report of- 1908 with public and private owner- ship of municipal utilities, and that of 1900 in part with kindergartens and manual training. These reports, while not always prepared with suthcient care, represented investigations which should properly have been undertaken by some State officer, and were of value. Present Position of Bureau. From 1879 to 1893 the bureau of labor statistics (with the board of commissioners of labor) was the central labor office for Illinois. But Its relative importance has gradually declined. Factory inspection began in 1893, and an independent office was created to perform this function. In 1895 an independent board of arbitration was established. When free employment offices were established 1899 they were each made almost completely independent of the bureau. Private em- ployment agencies were from 1903 to 1909 under the control of the bureau, but in 1909 a chief inspector of private employment agencies was provided to administer in detail the legislation relating to such agencies, although the control of the commissioners of labor remained. The mining legislation, which had been under the control of the com- missioners of labor since 1879, was withdrawn by acts of 1907 and 1911. The administration of the workmen's compensation act of 1911 was committed to the bureau, but this authority was withdrawn in 1Q13. With each new departure in labor legislation the tendency has been to create a new and independent administrative organ. The bureau of labor statistics has at present substantially the following functions: (1) Supervision over private employment agencies, although the de- tailed work is performed by another office. (2) A slight control over the free employment offices, and the duty of publishing the reports of these offices. (3) The duties of preparing and publishing a biennial report, and of publishing an annual report of accidents. Its duties are, therefore, at present primarily informational and with respect to the most important matter, that of accident reports, its usefulness is badly crippled by the present confusion of legislation as to accident reporting. The biennial report of 1908 was united with a report on industrial accidents. The 1910 biennial report appeared in 1913, and the first part of it is devoted to statistics of manufactures in Illinois, giving in somewhat different order material published by the United States Census Bureau. The secretary of the bureau of labor statistics in a letter of January 8, 1914, says : "There has been no information collected for a 1912 biennial report for this bureau, and when I took charge of this department last August and found this circumstance I decided that at this late date a 1912 biennial report would be of no value by the time information was collected and a report printed, so the next biennial report of this office will be for 1914, information for which will soon be collected." The last report on industrial accidents, that for the year ending December 31, 1912, is about as prompt as any of the state reports. The annual report of free employment offices for 1913 is in print. The bureau has also recently prepared a bulletin containing the labor legislation enacted by the General Assembly in 1913, and has issued a compilation of labor legislation in force in Illinois. LABOR AND MINING. 523 I IV. PRIVATE EMPLOYMENT AGENCIES. The act of 1899, creating free employment offices in certain cities, . also provided for the licensing of private employment agencies by the Secretary of State. The machinery provided for the enforcement of this provision was unsatisfactory and a uniform license fee of $200 per annum imposed upon all such agencies was excessive ; moreover no regulations were prescribed as to the conduct of business by such agencies. The act of 1903, dealing primarily with free employment offices, has several sections applicable to private employment agencies, and transferred the licensing authority to the commissioners of labor. Somewhat detailed regulations were provided for the conduct of such agencies, and the enforcement of these regulations was committed to the state board of labor commissioners and their secretary. The pro- visions of 1903 were superseded by an act of 1909 which is devoted entirely to private employment agencies. This act regulates such agencies in great detail, and commits the enforcement of its terms to the commissioners of labor, and to a new officer designated as chief inspector of private employment agencies. Section 7 of the act of 1909 defines a private employment agency as being "any person, firm or corporation, who for hire, or with a view to profit, shall undertake to secure employment or help, or through the medium of card, circular, pamphlet, or any medium whatsoever, as through the display of a sign or bulletin, offer to secure employment or help, or give information as to where employment or help may be secured.'* Charitable institutions are expressly exempted from control. The act forbids the opening, keeping or carrying on of any employ- ment agency in the State of Illinois unless a license therefor shall be procured from the state board of labor commissioners. A violation of this provision is made a misdemeanor punishable by a fine of not less than $50 and not more than $200, or on failure to pay such fine, by imprisonment for a period not exceeding six months, or both, at the discretion of the court. The act provides that licenses shall be issued by the board of labor commissioners and fixes an annual fee therefor of $50 in cities of 50,000 population and over, and of $25 in all cities containing less than 50,000 population. A person desiring a license must file with the board of labor commis- sioners an application therefor. Such application must be accom- panied by the affidavits of two persons who have known the applicant, or the chief officer thereof, if a corporation, for two years, stating that the applicant is a person of good moral character. The board of labor cornmissioners is to post each such application, on the date of filing, in its office or in the office of the chief inspector of private em- ployment agencies, where it must be kept until it is acted upon. The board of labor commissioners cannot act on the application until after the expiration of one week from the date of filing the -application, but they must act upon it within thirty days from the time of application. But before the board may grant any license notice of such application shall be published on three distinct days by them in some daily news- paper -of general circulation throughout the county within which the applicant desires to locate such agency. The applicant is required to file with his application a bond for the penal sum of $500, with one or more sureties, to be approved by the commissioners, of labor, on condi- tion that the obliger will conform to and not violate any of the terms of the act. Any person injured by the misconduct of the licensed person is given the right to sue on the bond, and claims of this char- acter are made assignable. If these conditions are complied with the license is issued. Each license must contain: (1) Name of person licensed. (2) City, street and number of the house in which the licensed person is authorized to carry on business. (3) Number and date of the license. In the matter of location of the office the licensed person is under the restriction that no agency shall be located on premises where in- toxicating liquors are sold, excepting cafes and restaurants in office buildings. The license is not valid to protect any place other than the one desig- nated therein, but if a change of location is desired and the licensed person obtains the consent of the board of labor commissioners, or the chief inspector of private employment agencies, and in addition secures the written consent of the sureties on the bond, the license will then cover the new location. The act contains detailed regulations : as to the registers for applica- tions for help and for employment, which are to be kept open during office hours for inspection by the officers vested with the enforcement of the act ; as to the employes or solicitors of such agencies ; as to the registration and other fees ; as to receipts for fees and return thereof m case employment is not obtained within a certain time or does not extend beyond a certain time ; as to sending applicants to places where no employment actually exists; as to safeguards in sending applicants outside of the city in which the agency is located; and as to numerous other matters. Each receipt of an agency is required to have printed on its back the name and address of the State board of labor commissioners and of the chief inspector of private employment agencies. The agencies are also required Jo have the more important provisions of the act posted in tneir offices. The agencies are specifically forbidden to send female n^'P to any place known to be of questionable character, or to aid in ^f ?o^^i?^ employment for any child in violation of the child labor acts 0^ 1897 and 1903. For sending females to questionable places and for certain other th "^^cn ^^^ penalty (under section 6 of the act) is a fine of not less nan $50 and not more than $200 or imprisonment in the county jail r house of correction for a period of not more than one year, or both lif 524 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 525 at the discretion of the court. For the violation of the other pro- visions there is a possible fine of $25 or imprisonment for 30 days. In addition th^ license may be revoked for any illegal conduct. Organisation of the Enforcing Authority. Enforcement of the act is committed to the State board of labor commissioners and an officer to be known as the chief inspector of private employment agencies. The chief inspector is first * recom- mended by the State board of labor commissioners and appointed by the Governor, at a salary of $3,600 per year for a term of office ex- tending through the period of the incumbency of the Governor appoint- ing him, or until his successor is appointed. By the terms of the act deputy inspectors may be appointed by the chief inspector with the approval of the Governor, one inspector for every fifty licensed agencies or major fraction thereof, at a salary of $1,500 per annum. By an amendment of 1911 one woman investigator of domestic agencies was added. The deputy inspectors and the woman investigator are now appointed under the terms of the civil service amendment act of 1911. The chief inspector of private employment agencies Is required to furnish bond payable to the State of Illinois in the sum of $5,000. Each inspector is required to make at least bi-monthly visits to every agency over which he has jurisdiction. Such inspectors are charged in the same manner as the chief inspector and board of labor commis- sioners, to see that all the provisions of the act are complied with, and they shall have no other occupation or business. Duties of the Enforcing Authority. Under the act the eniforcing authorities perform in the main, three functions : (a) granting of licenses, (b) compelling an observance of the specific provisions of the act (by inspections and prosecutions), and (c) revocation of licenses. (a) Granting of Licenses. The provisions of the statute govern- ing issuance of licenses have already been noted. The granting of licenses is committed exclusively to the State board of labor commis- sioners. The general requirements before a license may be issued are: That the applicant tender the required fee, submit affidavits of two persons who have known him for two years, which shall state that the applicant is of good moral character, and submit a bond in a penal sum of $500. But even if these provisions are complied with the board is not bound as a matter of course to issue the license. The act expressly provides that the State board of labor commissioners may refuse to issue a license for any good cause shown, within the meaning and pur- pose of this act. However, if a license is refused, the determination is subject to review on a writ of certiorari. (b) Compelling observance of the provisions of the act. The state board of labor commissioners and the chief inspector of private employment agencies (and under his direction the inspectors) arc en- trusted with the enforcement of the act. For the most part the act lays down specific requirements and prohibitions upon persons licensed to conduct private employment agencies. The act expressly provides that the 'Violation of any provision of this act except as provided in Section 1 and 6 shall be punishable by a fine not to exceed $25 and any city magistrate, judge of a municipal court, police justice, justice of the peace, or any inferior magistrate having original jurisdiction in crim- inal cases shall have power to impose said fine, and in default of pay- ment thereof to commit to the county jail or house of correction the persons so offending for a period of not exceeding 30 days." The State board of labor commissioners or the chief inspector of private employment agencies or any of the inspectors created by this act, may institute criminal proceedings for its enforcement before any court of competent jurisdiction, and the State board of labor commis- sioners is given authority to employ legal advice or services whenever in its opinion such advice or services are necessary. Further to ensure the enforcement of the provisions of the act, the chief inspector of private employment agencies and all inspectors created by this act are given full power to execute and serve all war- rants and process of law issued by any justice of the peace or police magistrate, or by any court having competent jurisdiction un-der the law relating to employment agencies, in the same manner as any con- stable or police officer, and they may arrest on view and without war- rant any unlicensed person detected by them actually violating any of the provisions of the act and may take such persons so offending before any court having jurisdiction of the offense, and make proper com- plaint before such court, which shall proceed with the case in the man- ner and form provided by law. (c) Power to revoke licenses. The State board of labor commis- sioners is given power to revoke any license for good cause shown within the meaning and purpose of this act, and when it is shown to the satisfaction of the board of commissioners of labor that any person IS guilty of any immoral, fraudulent or illegal conduct in connection with said business, it is then the duty of the board to revoke the license of such person. But before any license may be revoked notice of the charge must be presented and reasonable opportunity given the licensed person to defend himself in the manner and form as provided in this ^ct. Such proceedings are begun by filing a complaint against the hcensed person with the State board of labor commissioners or with the chief inspector of private employment agencies. This complaint may De made orally or in writing. A concise statement of the facts constituting the complaint is then Written out and served (personally) upon the licensed ^erson, and ^otice of the place of hearing must be given. A hearing may be had etore the state board of labor commissioners, or before the chief Th^^r^^^ o^ private employment agencies if the board so designates. e licensed person is entitled to at least one day before the hearing, we I 7^^^^^"^ "^^^^^ thereof, but the hearing must be had within one ^ ek from the filing of the complaint. The determination must be lice ^^S^t days from the time the matter is finally submitted. If the nse IS thereupon revoked, the determination is subject to review on writ of certiorari. 526 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 527 \( 1 H A calendar must be kept by the state board of labor commissioners of the complaints they are to hear and by the chief inspector of those he is to hear, and must be posted in a conspicuous place in its or his office for at least one day before the date of such hearing. The chief inspector of private employment agencies is given con- current power with the State board of labor commissioners with re- spect to the hearing of complaints against licensed persons, provided he is designated by the board to hold such hearings, but cannot him- self revoke the license. The State board of labor commissioners, which issued the license, is the only body granted power to revoke. \\ hen the board has issued an order revoking a license, the order does not become effective until seven days after such revocation has been of- ficially announced. Such revocation is good cause for refusing to issue another license to the same person or his representative, or to any person with whom he is associated. Finances. • The act of 1909 contemplated that the office of chief inspector of private employment agencies should be self-supporting. Salaries and general expenses were to be paid from the license fees and fines col- lected under the provisions of the act. The following items were to be paid from this fund : Salary of chief inspector, $3,600 per annum, payable monthly, upon voucher therefor filed with the Auditor of Public Accounts, and ap- proved by the Governor; necessary printing, stationery and postage, office furniture, rent of rooms, salaries of assistants, such as clerks and stenographers, as the office required ; any expense incurred in ob- taining legal advice; salaries of inspectors $1,500 per annum, such salary to be audited and paid on certificates of the chief inspector of private employment agencies. Should the fund prove insufficient, the board of labor commissioners was given power to suspend any number, or all of such inspectors until the fund was again replenished. The State board of labor commissioners, at the end of each fiscal year, was required to make an account of said license fee fund and pay into the State treasury whatever balance remained after having made the necessary disbursements. But by legislation of 1911, all fees are required to be paid into the State Treasury, quarterly, and no money is expended except upon the warrant of the auditor of public accounts, based upon appropriations made by the general assembly. In the act relating to private employment agencies there is no prO' vision requiring reports of the work of supervision. The work, how- ' ever, is under the control of the State board of commissioners of labor, and this board is required to collect, assort, systematize and present in biennial report to the General Assemblv statistical details relating to all departments of labor in the State. Reports. The act relating to free employment offices requires an annual r^' port to be made to the bureau of labor statistics by each, superintenden of a free employment office, not later than December 1, concerning t work of bis office for the year ending October 1. The reports from all free employment offices are systematized, rearranged and published annually by the bureau of labor statistics. The report for 1909 of the bureau of labor statistics of the Illinois free employment offices con- tains also a report of the chief inspector of private employment agencies for the years ending August 31, 1909 and August 31, 1910; a similar report for the period Sept. 1, 1910— June 30, 1911, is contained in the free employment offices reports for 1911 ; and for 1912 and 1913 the reports appear in the 1912 and 1913 reports of the free employ- ment offices. Before 1911 the chief inspector, of private employment agencies re- ported to the bureau of labor statistics concerning the work of his office for the year ending August 31. Legislation of this year required all fees and fines collected by him and the commissioners of labor to be paid over to the State Treasury on or before the second Wednesday of January, April, July and October of each year. Referring to this amendment in his report to the Bureau of Labor Statistics in 1910, the Chief Inspector of Private Employment Offices says : "This change having made it necessary for the General Assembly to make appropriations for the maintenance of our office and creating a new channel through which the license fees reach the State Treasury, I therefore, submit to you another report on the supervision of the private employment agencies in Illinois for a period of ten months from September 1, 1910 to June 30, 1911." The reports of the chief mspector for 1912 and 1913 published in reports of the bureau of labor statistics on free employment offices, cover the regular fiscal year, July 1 to June 30, although some of the information presented by the sec- retary of the board of commissioners of labor covers the years ending August 31. ^. & The law for the inspection of private employment agencies is en- torced primarily in Chicago, and has little operation with respect to other parts of the State, except so far as other places may be easily reached from Chicago. As stated in the 1912 report and as stated for ine present time by the chief inspector personally this is due to the small appropriation. Personal inspections are not made outside of ^"icago, and the problem there is probably sufficient to keep all the th/cf ^""^ u^' ^"^ smaller cities, especiallv in the southern part of eZ u .^ ^^^ probably a number of agencies of which no record dennf-" . ^"^ ^^^^ ^^^""^ ^^^^ ^" th^s office a chief inspector, five funHc .1 ^"^, tl^ree other employees. Because of the smallness of nas, the public notice by advertisement of the applications for license, SDe'T ^'^^"l '" ^^^^' ^"^ ^^^^^^ ^^s little opportunity to employ council ?T,- ^""""^ "^^ '^'''''''^ ^^^'^ y^^"" 1^^^ b^^" "^a^e of special officers ^^^^^"^^ IS ordinarily placed upon the regular prosecuting an . ^^^"f^ ^as already been made to the fact that the law requires "spection of each agency once every two months. If the whole 528 EFFICIENCY AND ECONOMY COMMITTEE. }} I ^ \ field of employment agencies is covered an inspection of this frequency probably cannot be had; for some types of agencies it may be unneces- sary, while as to other agencies an even more frequent inspection is desirable. This requirement has not been observed. With reference to the revocation of licenses it has already been sug- gested that the commissioners of labor may themselves hold hearings or may authorize the chief inspector to do so. The commissioners have not ordinarily (if in any cases) authorized the chief inspector to hold hearings, and this makes difficulty in that the hearing must be held within one week after the filing of the complaint. It is difficult to get the commissioners together to hold a hearing inasmuch as their compensation is nominal. Proceedings to forfeit licenses may there- fore fail on this account. Of course, the commissioners must act in revoking the license, and such action is under present law required to be taken witliin eight days after the matter is finally submitted. It would be well for the commissioners to employ the chief inspector to a greater extent for the taking of testimony, and the law should be amended so as to permit a longer time between the filing and the heap- ing of complaints. The present method of appointing the chief inspector is one which IS not conducive to the best resuhs. In offices of this character poH- tical mfluence should not count, but some impartial method should be employed to test efficiency for the duties to be performed. A difficulty in the enforcement of the act arises from the fact that charitable institutions are not included. In many cases agencies ac- tually charging fees and doing a general business as employment agencies masquerade as charitable institutions in order to escape the operation of the law. V. FREE EMPLOYMENT OFFICES. By an act approved April 11, 1899, free employment offices were created, one in each city of not less than 50,000 population, and three in each city containing a population of one million or over. A super- intendent, assistant superintendent, and clerk for each of these offices were to be appointed by the Governor, with the advice and consent of the Senate upon the recommendation of the State board of commission- ers of labor. The duties of the superintendent were definitely pre- scribed, and he was required to make an annual report to the State bureau of labor statistics. Whenever the commissioners of labor were of the opinion that a superintendent was not duly diligent and ener- getic in the performance of his duties, they were authorized, after a hearing, to recommend his removal to the Governor. The Governor \yas authorized to remove the superintendents upon such recommenda- tion, or to remove at any time for cause any superintendent, assistant superintendent, or clerk. Under this act three free employment offices were established in Chicago in 1899, and after the census of 1900, one in Peoria in 1901. The act of 1899 was superseded by an act of 1903, which repeats in large part the provisions of the eariier act, but does not contain pro- visions regarding the removal of superintendents. An amendment of lyl3 to the act of 1903 creates free employment agencies, "one in two or more contiguous cities or towns having an aggregate or combined population of not less than 50,000 population." Under the act of 1903, as amended, there are three free employment offices in Chicago (1899)' non^^Tf^^,^.^" ^^^"^ (^^^^)' E^st St. Louis (1907), Springfield (1909), Rockford, and Rock Island (1913). The purpose of these offices is, as stated in the act, to receive appli- cations of persons seeking employment and to receive applications of in ?v?"\^^^ ^"^ *° employ labor. Each free employment office is placed n tne charge of a superintendent, who is aided by an assistant super- niendent and a clerk, all of whom are to devote their entire time to •e auties of their respective offices. The Governor is given power appoint, upon the recommendation of the commissioners of labor e superintendent, assistant superintendent, and clerk, by and with ne advice and consent of the Senate. The act provides that in each The ^1 r ^^^^s^^"* superintendent or the clerk shall be a woman sunerinf'^^'' *L'f ^'"P^""^^"^^^t is fixed at $1,500 per year, assistant aDDrnn • "^^''^ ^^'2^^ P^^ y^^^' ^"^ ^f the clerk $1,000 per year. By the nffi ^ " ^^*^ additional assistants have been provided for all of these nffi' ^''''^P* ^^^^ ""^ ^^^^ ^^^^^^- The additional employees of South^^^^ ^i^ '"J ^^^ classified civil service. At present the Chicago " ^ide office has seven employees, and each of the other Chicago 530 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. S3] l» ' Offices Six; the East St. Louis, Peoria. Springfield and Rockford offi«s have five employees each ; and the Rock Island office the three em ployees provided by the Statutes of 1899 and 1903. r.Zt^-^'li '^'^ •{ devolving upon a superintendent is the selection of an office in the city where the free employment office is to be opened Th location of the office is agreed upon between the superintendent Tn I the secretaiy of the bureau of labor statistics. ntencient and tr^fh^ ^"u^"^ 1"'? °\ ^r^ employment offices is to supply laborers employment. That is, it is the duty of the offices to bring empb and emp oyee together. Their duty is not confined to unsklled labo - ers for the language of the statute is sufficiently broad to cover anv kind of employment whether skilled, unskilled, or even professions A person may apply for any kind of help or an; kind of work • "^^u- 1"^! «^.P'"essly provides that the superintendent shall keen a bonl in which he ,s to keep the names of all applicants for employment 2 help, and section 8 of the act defines "Applicant for employment'' f?.?hl"' ^'''°" '•'"'"'"^ ""'"'^ °^ ^"y '^^"^"' character, and "applicant tor help as meaning any person or persons seeking help in any legiti- mate enterprise, "and nothing in this act shall be%onstrued to 1 W the meaning of the term work to manual occupation, but it shall in- clude professional services and all other legitimate service." attemT5^to'fiffr!"''"f"/ '' '"'.'1"''"^ '° ''« something more than fn aSd, tvl -I^"""'^' ^°' T'^' ^""^ '^^'P ^^'"■'^'^ ™m« *" the office. An where labo L^Tf ''n T"". ''™ *° '^"^ ""* "'"^^^^ ^^^-"'^ '« nng the co-operation of the said employers ^Lr^u' f ' ^""^ *^ superintendent is authorized to advertise in hll ^^T"'.° * "^^'P^Pf^' °' other media for such situations as lie CO on??i^ % ? '^"' ^"^ ^^ "^y ^''vertise in a general way for the co-operat on of large contractors and employers, in such trade journals or special publications as reach such employers, whether such trade nLT/lt- ^°T'''' "/ Pihlished in this state or not. The following Xce/whL' T °^ f u'^i' ^d^'ertising for information concerning however r^r^^*.*"^^ ^^ ^^'^ ^"^ ^^^'^ '^'^°'-c'-s are wanted, does not. ^J^Z i'f u^t ** superintendent from pursuing other melhoecretary of State upon requisition made by the superintendents. nn:!! r. 532 EFFICIENCY AND ECONOMY COMMITTEE. In his annual report to the bureau of labor statistics, which must be made not later than December 1, of each year, each superintendent must report "concerning the work of his office for the year .endina October 1st of the same year, together with a statement of the expenses of the same, including the charge of an interpreter when necessary " The annual reports are required to be published by the bureau of labor statistics, and under the act of 1903, were to be published with the Coal Report of that bureau. The publication of the Coal Report was m 1911 transferred to the state mining board. Even before this the bureau of labor statistics issued the annual report of free employment agencies m separate form, as well as in combination with the Coil Report. The annual reports issued by the bureau of labor statistics mve consolidated statistics for all of the offices, as well as the separate reports for each free employment office, but these reports indicate httle as to the efficiency of the offices. The total number of applications for employment in 1912 was 73,356, and in the same period 69,883 posi- tions were secured by the six offices then in existence. But far the greater number of applications for employment go to private emplov- ment agencies, in Chicago especially. The free employment offices do only a small amount of the busi- ness, and their small number, of course, accounts in part for this. In 1912 two hundred and eighty-four licenses were issued to private em- ployment agencies, and reports from 113 of these showed 404153 positions secured. The creation of free employment offices has 'not appreciably reduced the demand for the services of private agencies (although statistics are not available and the proportionate demand for positions has of course increased). It would be difficult to determine to what extent, if any, the existence of the free offices has caused the rendering of better service by private agencies. As far as organization is concerned, it would seem that a more effective scheme may be devised. The free employment offices are now subject to the commissioners of labor and the secretary of the bureau of labor statistics in the following matters: (1) The super- intendent, assistant superintendent, and clerk of each office are ap- pointed by the Governor, with the advice and consent of the Senate, upon the recommendation of the commissioners of labor. (2) The original location of each office is determined by agreement between /^N ^HP^""^^"^ent and the secretary of the bureau of labor statistics. (;5) Reports must be made by each office to the bureau of labor sta- tistics, and published by that bureau. (4) The bureau of labor statis- tics may require the free employment offices to collect and furnish to it certain statistical and other information. Aside from these requirements, each office is independent, not only of every other office, but also from any central control. Such a situation should not exist, and a co-ordination of the work of the several offices would probably result in more efficient service. The superintendent of one of the Chicago offices has suggested that the superintendents in that city should meet to discuss ways and means of increasing the efficiency of these offices ; and the superin- LABOR AND MINING. 533 tendent of the Springfield office has suggested the advisability of co- operation in order to prevent the congestion of the labor market in certain localities. Some central official organization would correlate the work of the various offices. Under the present organization there has been little if any effective co-operation among the several offices. There has been no systematic effort through the free employment offices to cope with the unemployment problem as a whole. The Chicago Unemployment Commission, appointed by Mayor Harrison, has published a report dealing with this whole problem. A resolution adopted by this Commission reads as follows: "1. We recommend the establishment of a labor exchange so organized as to assure: (a) adequate funds to make it efficient in the highest possible degree; (b) a mode of appointment of the salaried directors which will protect it against becoming the spoils of political factions and parties ; and (c) a board or council of responsible citizens, representing employer^ employees and the general public, to direct the general policy and watch over the efficiency of the administration, this board or council having the power to employ and discharge all em- ployees subject to proper regulations of the civil service commission. "2. We recommend that the Governor and legislature be re- quested at the next session of the legislature to amend the present law relating to free state employment bureaus so as to secure a central state labor exchange, based on the principles just stated." Professor Ernst Freund has drafted a bill embodying these ideas. The bill drafted by Professor Freund and another bill introduced in 1913 to centralize control over the present agencies, are published in the report of the Chicago Commission. (Report of the Mayor's Commission on Unemployment, pp. 8-12). The text of a proposed bill may also be found in the third report of the New York Commission to inquire into the question of employers' liability and other matters. (1911). The General Assembly at its 1913 session (Laws, 1913, p. 627^ authorized the appointment of a state commission to investigate the subject of unemployment in Illinois, but made no appropriation for the expenses of such a commission. LABOR AND MINING. 535 II \ VI. INDUSTRIAL BOARD. The first workmen's compensation act was passed in 1911 and was made applicable only to certain designated employments' Its administrative features were relatively simple, and authority was vested m the bureau of labor statistics to handle the administrative work Elections by employer or employee not to come within the act were hied with the bureau ; in case matters between employer and emplovee were submitted for arbitration the third arbitrator was selected bv. court of competent jurisdiction, and a copy of the award was filed with the bureau ; employers under the act were required to send to the bureau reports of accidents for which compensation had been paid fhnt If^^QnT'"^'^'''^^^^ ^'^^"''' ^^ ^^'^ ^^^ ^^ ^91^ (which replaced mat ot 1911) are much more complete, and the administration of this ThVlnTT-'I'f '^^ 'P'^'"^ ^^^y ^"^^" ^' the industrial board. Ihe industrial board consists of three members appointed by the w^Z"""'' . f """"^ ^''^' ^'^^ ^"^^^'^" ''^"^ ^^"s^"t of the Senate, one of tb. n^f """"i "" ^/P;es^"tative of the employing class operating under e act, and one of whom must be a representative chosen f rom amon^ tje7f^Z^'' operating under this act, and one of whom shall be a representative citizen not identified with either the employing or em- rZ'i'rriT'^ ''^^^'^^"" ^^ designated by the Governor as chairman. 1 he term of the members of this board is fixed at six years, except that when first constituted one member serves for two years, one for four years and one for six years. Not more than two members of the ^Zij^^^ i''^T^ ^V]^''''''^ P^^^t^^^^ P^^ty- The salary of each member is fixed at $4 000 per year. The board is given power to appoint a secretary and to employ such assistants and clerical help as may be necessary. ^ f. K ^^""/'"i^^ ?[ election to be bound or not to be bound by the act are to be filed with the industrial board. An agreement or award under tne act, providing for compensation in installments, may at any time within eighteen months be reviewed by the industrial board, upon application of either the employer or the employee. Where an employer and employee, who have come under the law, are unable to agree, a committee of arbitration is constituted, composed of a member or agent of the board, as chairman, and representatives of the two parties. An arbitration award is subject to review by the industrial board, and questions of law involved in the decision of the •f\- "{f.y ^^^^v'^^ed by the Supreme Court if application be made within thirty days after the board^s decision. r.n^"^ T^'H^ copy of the decision upon arbitration proceedings when rendered is filed with the circuit court of the county in which the accident occurred, whereupon such court renders judgment. But judg- ment cannot be entered until fifteen days' notice of the time and place of the application for the entry of judgment shall be served upon the employer by filing such notice with the industrial board. The board is given power to make rules and orders for carrying out its duties, which rules and orders are to be deemed prima facie reasonable and valid. The board or any member thereof has power to administer oaths, issue subpoenas, and examine witnesses, and to examine and inspect such books, papers, and records, places or premises as may relate to questions in dispute. Section twenty-three of the act provides that no employee, personal representative or beneficiary shall have power to waive any provision of this act in regard to amount of compensation except after approval of the industrial board. An employer against whom liability may exist for compensation may be relieved therefrom by purchasing an annuity or by depositing, in a depository approved by the board, the commuted value of the? unpaid compensation. Upon petition a lump sum compensation may be awarded by the board instead of periodical payments. By section twenty-six every employer who elects to provide and pay the compensation provided for by this act shall within ten days of the receipt of a written demand by the industrial board (1) file with the board a sworn statement showing his financial ability to pay com- pensation normally required to be paid, (2) or furnish security or (3) insure to a reasonable amount his normal liability to pay such com- pensation or (4) make some other provisions for securing payment of compensation. The sworn statement of financial ability, or security, or amount of insurance, or other provision is subject to the approval of the board. Section thirty provides that every employer within the provisions of the act shall send to the industrial board a report of all accidental injuries for which compensation has been paid. Section twenty makes it the duty of the industrial board to report in writing to the Governor on the thirtieth of June annually the details and results of its admin- istration of the act. The industrial board has been in existence for so short a time that little can be said as to its manner of conducting business. Reference IS made later in this report to the fact that in accident reporting great difficulty has been occasioned by the creation of a board independent of the other labor ofiices. The administration of a compensation scheme should be closely allied with the work of accident prevention, and at present there is no relation whatever in Illinois. From the stand- point of accident prevention, it would be well to have a compensation law whose burden would fall more heavily upon the careless than upon the careful employer. From the nature of the compensation board's work there appears to be no reason why the administrative details can- 536 EFFICIENCY AND ECONOMY COMMITTEE. not be handled by a chief of bureau, and the discretionary functions by a board which should perform all discretionary duties for a con sohdated department of labor. With respect to one matter there has been criticism of the opera tion of the compensation law. Some employers who have had experi- ence under it complam that the arbitration boards have been partial to workmen and that the decisions of these boards are almost uniform v sustained by the industrial board. ^^urmiy > \ I VII. STATE BOARD OF ARBITRATION.. The state board of arbitration was created by an act approved August 2, 1895, and consists of three members, appointed by the Gov- ernor, with the advice and consent of the Senate. The members are appointed for three years, and the terms are §o arranged that one member retires each year. Not more than two of them may belong to the same political party. One and only one of them shall be an employer of labor; and one and only one an employee, who shall be selected from some labor organization. The members of the board each receive a salary of $1,500 per annum. The board was authorized by the act of 1895, as amended in 1903, to select and remove a secre- tary, who is required to be a stenographer, and who, under the amend- ment of 1903, receives $2,500 per annum. The secretary, however, now comes under the terms of the state civil service act of 1911. Under the act of 1895, as amended in 1899 and 1901, the board may (1) upon application made by an employer or by employees, act as a board of arbitration or (2) on its own initiative, it may attempt to effect an amicable settlement of labor disputes, or, if a controversy is one in which the general public is likely to suffer injury or inconven- ience, the board may, in absence of application by either party, investi- gate the facts and make public its findings and recommendations. Arbitration. Upon application of an employer or a majority of his employees in the department of business in which a controversy exists, the board is required to undertake a settlement by arbitration, provided the controversy does not involve questions which may be the subject of an action at law or a bill in equity. The application must contain a concise statement of the grievance complained of, and an agreement to continue in business or at work without strike or lockout until the decision of the board, provided a decision is made within three weeks after the filing of the application. The act of 1895 pro- vided that such application could be made only in case the employer involved employed not less than twenty-five men, but in 1899 an amend- nient permitted the union of employers or employees to make the number twenty-five, even though that number was not employed by the same employer, provided the employers were engaged in the same Reneral line of business and the controversy involved a common dif- ference between such employers and employees. . Upon the receipt of such an application the board is required to ^^^j^ public notice of the time and place of hearings thereon, but such public notice may be dispensed with should both parties to the con- troversy join in the application and request in writing that public notice mi. m iaHira| I ^ < j I 538 EFFICIENCY AND ECONOMY COMMITTEE. be not given. The board is required to visit the locality of the disoute and make a careful investigation of the controversy, hearing all ner sons interested who may come before them, and advising the parties what ought to be done to adjust the dispute. Under the act of 1895 the board was given authority to summon witnesses and administer oaths, and to compel the production of certain papers, but not until l«yy was It really empowered to compel testimony by means of an application to the County or Circuit Court, and to require the produc- tion of all relevant books and papers. ±' ul c»K ^h^}?^""^ '^ required to make a written decision of a controversy The^J'-'^ '' I' "?-^^'' ^"^ '^' ^^^^^^^" i^ ^P^^^ to public inspect 0/ The decision is binding upon the parties who joined in the application wrkW^'orr^' 1i ""'^^ '''^'' ^^''y ^^' g^^^" the other ^notici writing of his or their intention not to be bound by the same at the expiration of sixty days therefrom." An amendment^of IsCrovided ^r^i.^fLUr-'' T'^";^"-^ ^y % ^^^^"^^ to abide by a decision might con en^n/ h ^''''l' ""' ^^^'^ ^^"rt to have the violator punished for Twf ^ ' " '"""^ punishment was not to extend to imprisonment l^r^^A^^T^^ ^^^X T^y ^^^^^ h^th parties to the controversy have Sme'lid ''• ^^^^^^^^^ the board has power only to advise or come?tTiff ^rf /""'''''T'^'^'- T^" h^^^^ ^^ ^^q^i^^d when there ^r^r. ! ^"^,w^^^§^e a threatened strike or lockout involving an SLTon .r' ^''' '^"" twenty-live persons, to put itself into com munication as soon as possible with the employer or employees, "and or^JnH.^^ ""f ^"''^" '^ "'^^^ ^" amicable settlement betw^een\hem, state board." ^^^ ^"^ '"^""^^ ^^' "^^""' ^" ^^^Ptite to th^ c^.J^'J^-^^ ^•'^'?^ ??'^^'' "^^^ conferred upon the board in certain cases to investigate labor controversies as to which efforts at both concihation and arbitration had failed. This provision of law is of sufficient importance to be quoted in full : "Whenever there shall exist hnorH .i?"* ^ ?"^ wherein, in the judgment of the majority of said board, the general public shall appear likely to suffer injury or incon- venience with respect to food, fuel, or light, or the means of com- munication or transportation, or in any other respect, and neither party o such strike or lockout shall consent to submit the matter or matters ?u;^ JT''^ ^"^ ^^A '^""^^ h^^"^ ^^ arbitration in conformity with this act, then the said board, after first having made due effort to effect a settlement thereof by conciliatory means, and such effort having tailed may proceed of its own motion to make an investigation of all ^cts bearing upon such strike or lockout, and make public its findings, with such recommendations to the parties involved as in its judgment will contribute to a fair and equitable settlement of the differences which constitute the cause of the strike or lockout; and in the prosecu- tion of such inquiry the board shall have the power to issue subpoenas and compel the attendance and testimony of witnesses as in other cases. LABOR AND MINING. 539 To 1910 no use had been made of the powers conferred by the amendment of 1901, and the same statement is probably true for the period since 1910. Activities of the Board of Arbitration. The law goes as far as it well may in requiring the board to use its best efforts in securing a peaceful settlement of every labor dispute which arises in the state, whether the board is called upon or not by the parties to such dispute. Under the act as originally passed diflfi- ciilty was experienced in gaining information of the existence of strikes. Partially to remedy this an amendment was added in 1899, making it the duty of the mayor of every city, the president of the council of every incorporated town or village, and the chief executive officer of every labor organization, whenever a strike or lockout involving more than twenty-five employees is threatened, immediately to communicate this fact to the state board of arbitration. The annual reports of the board do not present any formal sta- tistics of cases handled, and it is difficult to determine to what extent the efforts of the board have met with success. The reports do show a greater use of its powers of conciliation than of those of arbitration. In the report of 1901 is reprinted the testimony of J. McCan Davis, then secretary of the board, before the United States Industrial Com- mission. This testimony indicated that in the four years from 1895 to 1898, 43 cases were acted upon bv the board, of which seven were arbitrations on the joint petition of the parties, thirty-three were cases of mediation : twentv-two of the cases were satisfactorily settled. In more than half of all the cases presented, action was initiated by the board. In recent years the board seems not to have been as active as m the beeinninsf. The policv of the board, as stated in its 1910 report (the latest report in print') is to allow the disputants to settle between them- selves, wherever that appeared possible, as it believes that better results are obtainable in that wav, while at the same time it has stood by ready to intervene at the opportune moment. An examination of its reports shows that the board has in the main "stood by" and looked on. The 1910 report shows consideration by it of five labor controversies, of which one was settled bv the arbitration of the board. In three cases offoTs, bv the board resulted in no action, and in the fourth the board united with boards from other states in an unsuccessful effort to bring about a settlement. The reoorts of the board are devoted in the main to statements reeardinfy labor controversies settled without its assist- ance, and 5:ive no satis factorv account of all labor disputes in the state fli^ringf the year. There is no indication as to whether strikes and loclv-outs were actually renorted to the board by municipal officers and labor orq^anizations, as required by statute. The Board of Arbitration was established after the great railwav strike of 1894. in response to a nonular demand that something should b(* done. Durin? a g^ood part of the time since its creation, the board has been quiescent, and has done little good or harm in the field marked ii I 540 EFFICIENCY AND ECONOMY COMMITTEE. iQin i^ the law All the activities of the board indicated in its 1910 report could not have required more than a few weeks' work uZ the part of the members and the secretary. Since 1910 the board has issued no prmted report, and for a good part of the time within recen iriol '^r k'^'^A^"' ""' ^^.^" ^^"^P^^^^- ^'S^^-^S with March 15, 1914, the board has transmitted written monthly reports to the Governor but an exammation of these reports coverin/the period from The duties of this board could well be transferred to some other bodv The arbitration la^y should at the same time be so amended as to pro vide for the creation of special boards to arbitrate particular labor ^h7T"'Jl """"^ '^''' ^ ^P^^^^"y ^'^^'^^ board would prove mor effective that a permanent board of arbitration. There should alsTbe an express provision for the rendering of aid to employers and ei5 ployees who desire to enter into arbitration agreements. VIII. MINING AUTHORITIES State Mining Board and Mine Inspectors. With the exception of a few minor statutes the first general law providing for the health and safety of persons employed in mines in Illinois was passed in 1872. By this act, which applied to mines in which more than ten men were employed, county surveyors were constituted ex-ofhcio inspectors of mines. The general subjects of ventilation, escapement shafts, bore holes, signalling, hoisting, explo- sions, and accidents were covered, and the several inspectors were charged with the duty of making inspections, enforcing the act, and reporting the general results of their inspections annually to the Gov- ernor. An amendment of 1877, in addition to minor changes, repealed the provision of the act of 1872 which made county surveyors ex-officio inspectors of mines, and vested the administration of the act in county mine inspectors to be appointed by the several county boards. No reporting was expressly required by the amendment. A general revision of the mining act followed in 1879 which enlarged its scope, but left the administrative features practically the same. Mine inspectors were required to make annual reports to the Governor. Amendments of 1883 further perfected the system of mine inspec- tion by requiring that additional safeguards be taken in mines and by introducing important changes in the administration of the act. The minimum age at whch children were allowed to work in mines was changed from 12 years to 14 years. The act was made to apply to all mines. The appointment of a board of examiners by the commissioners of labor was authorized, the board to consist of two practical coal miners, two coal operators, and one mining engineer. The state was divided into five inspection districts. The Governor, upon the recom- mendation of the board of examiners, was empowered to appoint five inspectors who were to devote their whole time to the inspection of mines and the enforcement of the act. The policy of inspection of mines by county inspectors was abandoned, but county boards were authorized to appoint assistant inspectors. Qualifications for inspectors were greatly increased. A knowledge of mine engineering was required and ten years' practical experience in mining. Annual reports of mspectors instead of going to the Governor were to be sent to the bureau of labor statistics. The term of office of inspectors was fixed at one year and the salary at $1,800. The commissioners of labor were given power to remove inspectors for cause. An amendment of 1885 increased the term of office of inspectors irom one to five years. Further amendments were made at almost every biennial session of the General Assembly ; and in 1899 a complete m 542 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 543 '■i *t' i A ;< >i i yiyi?^T """"^g legislation was effected. Under the legislation of 1899, the subordination to the bureau of labor statistics continued and the board of examiners was styled the state mining board. The powers ?onn ^^^^^ mining board, however, were considerably enlarged in 1899 and by an amendment of 1907 it was provided that this board should be appointed by the Governor, with the advice and consent of the Senate. In 1911 a complete revision of the mining act occurred of 1913"^ IS an analysis of the mining act of 1911 with its amendments The enforcement of the act is committed to the state mining board and under it to twelve state mine inspectors. The act imposes specific duties upon all mine operators, with penalties for violation, requiring that every mme manager, hoisting engineer and mine examiner shafl possess a certificate of competency from the state mining board The nature of the examinations, in order to obtain these certificates, is laid down in the act, and the board is authorized upon notice and hearing to cancel such certificates. The employment of any mine manager mine examiner, or horsting engineer who does not possess a certificate is torbidden. Inspections of every mine in the state are required to be made at certain intervals by state mine inspectors, who must be duly certified as competent by the state mining board, and the state mining board is made the general administrative authority through which the object of the act is to be carried out. The act goes into great detail in laying down specific requirements as to conditions which must be maintained in mines. These require- ments deal with the sinking of shafts, hoisting equipment, places of egress, stairways and cages, passageways, gates, light, signals, gauges, safety valves, boilers, obstructions, buildings on surface, oils and ex- plosives engine boiler-houses, speed of cages, safety lamps, ventila- tion refuge places, hauling roads, cars, voltage, wires, dead holes, shots, tools, tamping, etc. General penalties are provided for violations. ^ The Governor, by and with the advice and consent of the Senate. IS given power to appoint the state mining board. It is composed of tive members t^yo of whom must be practicing coal miners, one a practicing coal mine hoisting engineer, and two coal operators. One of the coal operators is to be elected president and one of the coal miners secretary. Their term of office is for two years at a salary of $n.00 per day for a term of not more than one hundred days in any one year. Ihe board is given power to appoint a chief clerk, at a salary of $2,000 per year and thqy may employ such other persons as may be necessary for the proper discharge of their duties. The chief clerk comes under the state civil service law. The board is given power to prescribe standing and other rules tor the control and direction of its officers and employes and of the state mine inspectors. It is also the duty of the board to collect statis- tical details relating to coal mining in the state and to publish such intormation yearly as a report to be known as the Annual Coal Report. iJetore 1911 the Annual Coal Report was prepared by the bureau of labor statistics. ^ The state is divided into twelve inspection districts by the state mining board. The board is required, by examinations, to make formal inquiry into and to pass upon the practical^ technological and personal fit- ness of men seeking appointment as state mine inspectors, mine mana- gers, hoisting engineers and mine examiners. Before an applicant is permitted to take any examination, he is required to register his name with the state mining board, and tile with it an affidavit as to all matters of fact establishing his right to take such examination, and a certificate of good character and temperate habits signed by at least ten residents of the community in which he resides. Persons applying to the state mining board as candidates for appointment as state inspectors of mines must produce evidence satis- factory to the board that they are citizens of the state, at least thirty years of age, that they have had a practical mining experience of ten years, and that they are men of good repute and temperate habits, rhey must pass an examination as to their practical and technical knowledge of mine surveying and mining machinery and appliances, of the proper development and operation of coal mines, of ventilation of mines, of the nature and properties of mine gases, of first aid to injured, of mine rescue methods and appliances, of the geology of the coal measures in this state, and of the laws of this state relating t6 coal mines. From those who pass said examination, the Governor appoints twelve state inspectors, to serve for a period of two years unless sooner removed by the state mining board for cause. Any inspec- tor in actual service who has passed one examination under this act may be reappointed without further certification but may not be so reap- pointed more than three times. The salary of inspectors is fixed at eighteen hundred dollars per annum, and they are allowed all neces- sary traveling expenses. A bond of five thousand dollars is required of each inspector. No one is eligible for such a position if he has any pecuniary interest in any coal mine in Illinois. For a while the state mine inspectors were under the civil service law (as amended in 1911), but under a ruling of the present Attorney- General they are exempt. Since this ruling the entire personnel of the state mine inspecting force has changed. Each state mine inspector, if in his judgment the work in his district requires the services of an assistant, is given authority to call upon county boards to appoint some person as such assistant, (to be paid out of the county treasury at a rate of not less than $3.C0 per day). Each assistant thus appointed must be the holder of a certificate of competency as a mine manager. Each state inspector is permitted to authorize (in writing) the county inspector to assume and discharge all the duties and exercise all the powers of the state inspector. The bond of the state mine inspector may be held for the faithful performance of duty by such assistant inspectors. Each state inspector is to devote his entire time to the duties of his office, and his duties consist chiefly in making personal inspec- tions of all mines in his district. Under the act of 1911, the state inspectors were required to make personal examination at least once in every six months of each mine in their district, in which marsh gas had been detected in quantities which the state mining board m^ « II I) \ m 544 EFFICIENCY AND ECONOMY COMMITTEE. thought dangerous. The state mining board, however, could require state inspectors personally to examine any or all other mines in their respective districts and the state mining board could assign inspectors to examine mines which had not been classified as generating marsh gas in dangerous quantities. The act also required that every mine in the state should be examined at least once in every six months. Some changes were made in these requirements by amendments of 1913. The act of 1911 contemplated chiefly the personal inspection by the state inspector of mines in which gas was being generated. The amendment of 1913 strikes out this limitation and expressly requires state inspec- tors to make personal examinations at least once in every six months or oftener if necessary of every mine in their districts in which ten or more men are employed. The provision allowing the state mining board to require state inspectors personally to examine any or all other mmes in their respective districts remain the same.' It is the duty of the state mine inspectors to see to it that the re- quirements of the act are in all cases complied with and that every necessary precaution be taken to insure the health and safety of work- men. After an examination has been conducted a notice is to be posted by the state inspector in some conspicuous place at the top of the mine, which notice shall contain a plain statement showing what, in the inspector's judgment, is necessary for the better protection of the Hves and health of persons employed in such mine. In case any violation is discovered, it is the duty of the state inspector to enforce the penalties provided therefor. In addition to the regular inspection the state inspector must make a personal investigation as to the nature and cause of all serious accidents which occur in mines within his jurisdiction. Each inspector is ex-officio a sealer of weights and measures with power (and upon request, with the duty) to inspect scales used at mines. Upon operators paying by weight for mining is imposed the duty of providing accurate scales. Each state inspector is required to render to the state mining board a written report of each mine inspected, the form of the report to be fixed by the board itself. In addition to this report each inspector is required, within sixty days after June 30th, to prepare and forward to the state mining board a formal report of his acts during the year in the discharge of his duties, together with any recommendations which he may have. Each inspector is required to collect and tabulate upon blanks furnished by the state mining board all desired statistics of mines and mifting. Upon a petition signed by not less than three coal operators or ten coal miners setting forth that any state inspector of mines neglects his duties, or that he is incompetent, or that he is guilty of malfeasance in office, or guilty of any act tending to the unlawful injury of miners or operators of mines, it is the duty of the state mining board to issue a citation to the said inspector to appear before it within a period of fif teen days on a day fixed for hearing, when the board shall investi- "Numerous other changes were introduced into the act by revision of 1913, dealing with conditions which should be maintained in mines. No other change of importance affecting the admipistration of the act was made by this revision. LABOR AND MINING. 545 gate the allegations of the petition and if the board shall find that the inspector is neglectful of his duty or that he is guilty of malfeasance in office or guilty of any act tending to the injury of miners or operators of mines, the board shall declare the office of said inspector vacant, and a properly qualified person shall be duly appointed to fill the vacancy. The state mining board has power to direct the state mine in- spectors in the discharge of their duties, and "shall have power and shall in person and through the state mine inspectors see that all the provisions of the state mining law are enforced." But each inspector is left practically independent as to the enforcement of the law within his district, subject to the requirement that he report to the board, and subject also to the possibility that the board may order him to make specific inspections. No chief inspector has ever been provided, and there has been little co-ordination of the inspection work in the several districts. The act also imposes specific duties upon all mine operators and upon all mine managers, mine examiners and hoisting engineers. In addition to the requirement that all mine managers, mine examiners, and hoisting engineers shall hold certificates of competency from the state mining board, specific duties and restrictions are placed upon each. Each operator is required to furnish annually to the state mine inspector of his district, on blanks furnished by him, statistics of wages and conditions of employees, said report to be in the hands of the state board within thirty days after June 30th. A penalty of one hundred dollars is fixed for violation of this provision. Each operator must keep accurate maps of mines, survey maps, maps of seams, etc., and must make an annual survey, and furnish a copy of all survey maps to the state inspector. All illuminating oil and other illuminants used in coal mines are required to conform to specifications prescribed by the state mining board. When any loss of life or personal injury occurs m or about a mine the operator must report such fact without delay to the state mine inspector. An act of 1910, amended in 1911 and 1913, deals with the subject ot hre fighting equipment in coal mines, and imposes the obligation upon all persons operating coal mines to observe certain specified precautions tor the prevention and controlling of fires and prevention of loss of lite from fires in coal mines. The act contains provisions relating to water supply, pipe and hose connections, automatic sprinklers, fire extinguishers, water pipes, underground stables, telephones, passage- ways, etc. Penalties are provided for violations. The act makes it the T^I u ^"^ ^^^^^ "^"^^ inspector or any county inspector, if he shall nnd that any provision of the act has been violated, to file a sworn complaint before any court of competent jurisdiction, asking that ^ne violator be bound over to the next grand jury, and the staters ^uorney is required to prosecute. Each county mine inspector is re- quired to report at least once each month to the state mine inspector, lating the mines he has examined, the violations discovered, and com- P aints filed. If state mine inspectors or county mine inspectors neglect retuse to file such complaints any person may file a complaint against 546 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 547 V such inspector charging nonfeasance in office, and the state's attorney is required to prosecute. If convicted said inspector is disquahfied from holding such office, and is not entitled to receive another certificate of competency v^ithin three months from date of conviction. It is also provided that when any mine manager or any miner has been convicted of violating the provision of the act, the state mining board or the min- ers' examining board, as the case may be, shall cancel and revoke his certificate of competency and such person shall not be entitled to receive another certificate for three months. Further to promote the safety of persons and property in coal mines, an act of 1913 relating to explosives provides that all permis- sible explosives for use in blasting coal in the State of Illinois shall con- form to certain specifications which have been fixed by the United States Bureau of Mines. State mine inspectors, county mine inspectors and accredited representatives of coal operators or coal miners are given authority to sample permissible explosives, or to have the same sent to the United States Bureau of Mines for that purpose. All explosives must be kept in magazines constructed in accordance with plans that are approved by the state mine inspector. General penalties are provided for violations. An act of 1911 relating to blasting powder contains specifications for black blasting powder which may be used in coal mines, provides rules for stamping kegs, defines offenses and fixes penalties. It is further provided that state mine inspectors and deputy mine inspectors shall have authority to sample black blasting powder used for blast- ing purposes in coal mines in tliis state or kept for sale for such a' purpose. Inspectors may have such powder tested by the state mining board. An act relating to oil or gas wells adopted in 1905, amended in 1911, has to do generally with the sinking, filling and operating of gas and oil wells, and provides penalties. It is made the duty of any person having custody or control of any well drilled for gas or oil and of the owner of the land in which such well is drilled, when the drill hole penetrates a coal seam, to file in the office of the recorder of th^ county and in the office of the state mining board a statement and map, giving the location and depth of every well so drilled. The shot firers act of 1907, as amended in 1913, requires all mine owners to furnish shot firers for mines, specifies the duty of shot firers and lays down rules for firing of shots and fixes penalties for violation. The enforcement of the act is committed to the state's attorney, and no duties under it are imposed upon the state mining board. Miners' Examining Board. In 1897 an act was passed requiring every pei*son desiring to work by himself in a coal mine to present evidence to the mine manager of the mine at which he was employed that he had worked at least two years with, or as, a practical miner. In 1908 an act was passed (amended in 1909) providing for the creation of a miners' examining board in each county in which coal mining was carried on. These boards, composed of three members each, were appointed by the rniintv judges, and were authorized to issue certificates after examma- tion to those desiring to work as miners. In 1913 the county boards were abolished and a single state board having the same general powers and duties was created. The state miners' examining board consists of three persons, appointed by the Governor, by and with the advice and consent of the Senate, for a term of three years, each with a salary of $1,500 per year. Each examiner must have at least five years practical and contmuous experience as a coal miner, and must have been actually engaged in coal mining as a miner in this state continuously for twelve months next preceding his appointment. The Governor may remove any member for neglect of duty, incompetency or malfeasance m office. The duty of the board is to hold an examination, one in each calendar month in at least twelve places located most conveniently with reference to the districts in which coal is mined, for all persons in such districts who wish to engage in mining. The exammation is to be of a practical nature so as to determine the competency and quali- fication of the applicant to engage in the business of mining. Each applicant is charged a fee of $2.00, this fee to be paid "by the board to the State Treasurer, once each month, together with a report showing where and from whom each fee was collected. The board is empowered to grant certificates of competency, upon the applicant's producing evidence of having had not less than two years practical experience as a miner or with a miner and upon his passing the required examination. This act provides that no person shall licreafter be employed as a miner in any coal mine unless he holds a certificate from the Miners' examining board. The act provides,_how- ever, that a certificated miner may have one person without a certificate working with him as an apprentice. It is made the duty of the board to report all complaints and all violations to the state's attorney of the proper county,^ such officer being under obligation to prosecute all persons so oflFending. The board has no official connection with the state mining board. It makes an annual report on the first day of March, to the Governor, of examinations held by it and work done by it during the preceding year, together with such recommendations as it may deem advisable. Mine Fire Fighting and Rescue Stations. For the purpose of providing prompt and efficient means of fight- ing:: niine fires and of saving lives and property jeopardized by fires, explosions or other accidents, the general assembly in 1910 authorized the establishment of three rescue stations to serve the northern, the cen- tral and the southern coal fields of the state. The rescue stations thus established were to J)e under the direction and management of a special commission appointed by the Governor. The commission consists of seven members including two coal mine operators, two coal miners, one state mine inspector, one representative of the department of mining at the University of Illinois, and one representative of the Federal 548 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 549 W ^ It \ Bureau of Mines. For service rendered they receive compensation at the rate of ten dollars per day, not to exceed twenty-five days during any one year. The commission was empowered to appoint as manager of the three stations a man experienced in mining and mine engineering and the manager by and with the advice and consent of the commission was authorized to appoint for each station a superintendent and an assistant, each to serve for two years. These officers now come under the civil service amendment act of 1911. The manager receives $250 per month, the superintendents $125 per month and the assistants, who under the act of 1910 received $75 per month, by amendment of 1913, receive a salary of $100 per month. But apparently the increased salary is not being paid. Only one extra assistant and one porter could be employed for each rescue car, until by amendment of 1913 two extra assistants were allowed. The act makes it the duty of the manager, subject to the approval of the commission, to supervise the work at each station, and to file, at the end of each quarter a complete report of. all operations and expenditures. He must provide that some representative be on duty at each station at all hours of the day and night. Whenever the manager or the superintendent is notified of any accident or explosion requiring his services, it is his duty to go im- mediately and superintend the rescue work, co-operating with the management of the mine and (an amendment of 1913 adds) with the state mine inspector. The commission is required to prepare a biennial report showing the work performed. An amendment of 1913 provides that the com- mission shall be given suitable rooms in the state house. Miners' and Mechanics' Institutes. To prevent accidents in mines and other industrial plants and to conserve the resources of the state by the education and training of all classes of workers in and about mines and other industrial plants of the state, legislation of 1911 provided for the establishment and maintenance of a form of educational betterment work known as the Illinois miners and mechanics institutes. The purpose of these institutes is to promote the technical efficiency of all persons working in and about mines and other industrial plants of the state and to assist them better to overcome the difficulties of mining and other industrial em- ployments. For the accomplishment of this purpose any and all means may be employed such as the sending of bulletins, travelling libraries, lectures, correspondence work, etc. The administration of the Illinois rniners' and mechanics' institutes is vested in the trustees of the Univer- sity of Illinois. The methods proposed for carrying out the work of the Illinois miners' and mechanics' institutes include oflFering (1) a two years course of systematic instruction at mining centers, (2) unit courses in single subjects at mining towns, (3) a short course at the University, (4) co-operation with other mining authorities and with schools and libraries, and (5) various special activities.^' A short course was offered at the University in the spring of 1914; and courses have been organized in a number of mining towns. Mining Investigation Commission. The General Assembly in 1909 created a mining investigation commission which was to report to the Governor and to the General Assembly at its next regular session, and was to go out of existence when this report was made. The sum of $25,000 was appropriated for the use of this commission. An act of 1911, almost identical with that of 1909, established a commission which was to report to the Governor and to the General Assembly at its next regular session, and which was then to go out of existence. An appropriation of $10,000 was made for the use of the commission. In 1913 a practically identical act was again passed, with the provision that the commission should terminate upon the adjournment of the Forty-ninth General Assembly (i. e., 1915), and an appropriation of $10,000 was made.' The mining investigation commission established by these laws, consists of three coal mine owners and three coal miners, together with three other persons not identified with the interests of either mine owners or miners, and not in political life, all of whom are appointed by the Governor. The commission having been authorized, with a Hmited existence, by three successve acts, new appointments have been necessary under each of the acts. The Commission elects a chairman and secretary from among their number, one of whom must be a mine owner and the other a coal mfner. Meetings may be held at such times and places as the Commission may fix, but called meetings must be held upon the request of three members, and such called meetings are held either in Springfield or Chicago. Members of the Commission who are mine owners or coal miners receive no compensation for their services, but are re- imbursed for actual expenses. The other members receive $10 a day for services rendered and are also reimbursed for actual expenses. The Commission is authorized to appoint a stenographer or clerk and other necessary employees. Disbursements of the money appropri- ated are made on the order of the Commission, signed by its chair- man, attested by its secretary, and approved by the Governor. The State board of contracts is directed to provide necessary printing. Testimony taken by the Commission is required to be reported in full and may be published by the Commission. The Commission is empowered to investigate "the methods and conditions of mining coal in the State of Illinois with special reference to the safety of human lives and property and the conservation of the coal deposits." By order of the Commission one or more of its mem- bers may be authorized to take testimony. The commissioners have power to issue subpoenas, and to apply to the circuit courts to compel the presence of witnesses and the production of evidence. The Com- mission is required to submit to the Governor and to the General ■niinois Miners* and Mechanics' Institutes, Bulletins 1 and 2. 'lU. Laws, 1909, p. 55; 111. Laws, 1911, p. 65; 111. Laws, 1913, p. 43. I i ;.( .j.- 55u EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 551 Assembly at its next regular session, so far as they have unanimously agreed, a proposed revision of coal mining laws of the state, together with such other recommendations as they should think proper. Where unanimous agreements could not be had, separate reports may be sub- mitted embodying the recommendations of any one or more members of the Commission. The revision of the mining laws in 1911 was proposed by the first mining investigation commission, and substantially all the mining legislaton *of the 47th and 48th General Assemblies resulted either directly or indirectly through the activities of the investigation com- missions. The Commission has served as a valuable agency for ob- taining agreements between operators and miners upon proposed legis- lation. Its expenses have not been heavy, and its continuance may be desirable so long as the subject of mining is one actively before the General Assembly. Suggestions Regarding the Administration of Mining Legislation. There are now four boards in Illinois having to do with the mining laws : the State mining board ; the miners' examining board ; the com- mission in control of the mine rescue stations ; and the mining investig- ation commission. The mining investigaton commission is a temporary body, but such a commission will, by the end of the 49th General Assembly, have remained in existence for about six years. A more effective organization is possible and it is recommended that one commission be vested with the general powers now exercised by the existing four. It may, however, be desirable that the mining investigation commission remain in existence, but if this is done the Commission should be organized upon a permanent basis. The mine rescue work is similar to the work now performed by the State mining board, and the rescue commission can now be abolished without any danger to the work of the rescue stations. The State mining board now examines and issues certificates to mine managers, mine examiners and hoisting engineers, and there is no reason why it should not have supervision over the issuance of certificates of competency to miners. It is desirable that the actual conduct of the examination of miners should remain in the hands of a committee of miners, but supervision of the examinations, some control over the questions to be asked, and the administrative details with • respect to the examinations should be in the hands of the state mining board. The appointment of the miners' examining board should also be vested in the State mining board. A larger power should be conferred upon this board with respect to the enforcement of the act providing for fire fighting equipment and the acts relating to explosives ; and the enforcement of the shot firers' act should be committed to the board. To this board should also be given power to make rules and regulations (after hearing and with judicial review) supplementing the present mining laws. The individual inspectors now exercise some discretion (not conferred by law)^ as to specific safeguards in mines: and an authority in the State mining board to make rules of general application would prove more satisfactory than the present practice. The mining investigation commission in its 1913 report approved the plan of commiting to the mining board a general power to make rules and regulation for the subject of mining (such rules to replace the rigid statutory require- ments), but thought the time not a favorable one for the introduction of the plan. In view of the fact that both miners and operators have adjusted themselves to the provisions of the present mining laws, it has been thought best to recommend now that the State mining board be granted power to make supplementary rules only. The functions of the state mining board will be primarily advisory rather than administrative, and a permanent salaried board is unneces- sary. The present State mining board, the mining investigation com- mission, and the mine rescue commission are on a per diem, and this plan should be continued for the state mining board, but with the per diem increased from $5 to $10. The executive supervision of the work of the State mining board should be in charge of a secretary, and the central control over state mine inspectors should be very materially increased. The secretary should be a member of the board, and should be a competent person affiliated neither with employers nor employes. The board may then be composed of seven members ; of the six, exclusive of the secretary, five may perhaps well be appointed as is now provided by law for the state mining board, two miners, two operators, one hoisting engineer, although there is no reason why hoisting engineers should be preferred to mine managers and mine examiners. The sixth member should be a competent person affiliated neither with miners nor operators. For the appointment of miners and operators provision should be made that the miners' and operators' organizations may make recommenda- tions to the Governor from which the Governor may make appoint- ments. With respect to county mine inspectors, the present situation is somewhat chaotic. The county inspectors are appointed by county boards and paid from county funds ; county inspectors must hold certificates as mine managers and are appointed (at least the statute provides that in the first instance the office shall be created) upon the written request of the State inspector. The State inspector may authorize a county inspector to exercise all the inspection functions in his county, during the absence therefrom of the State inspector. Bond of the state inspector may be held for the faithful performance of duty by the county inspector. Otherwise there is no official subordina- tion of county inspectors to the state inspectors or to the state mining board, and the State mining board actually has no record of the counties which have appointed inspectors. Reports received from the State inspectors for the various dis- tricts indicate that all the more important coal producing counties have provided for inspectors who are to give full time, or substantially full time, to mine inspection work; in a number of other counties inspectors have been appointed, but with per diem payment, limited either as to total annual amounts or as to the number of days. The State law provides that the compensation of county inspectors shall not be less ,A._ ^--iif 1*^ [I 552 EFFICIENCY AND ECONOMY COMMITTEE. that $3 a day. Altogether thirty-six counties have made some pro- vision for county inspectors, and it may be roughtly estimated that the expense to the counties in this connection is about $25,000. County inspectors are primarily responsible to the county boards from which they receive their appointments and salaries. The county inspectors are usually appointed for one year, although occasionally appointments are made for longer terms. The county inspectors do some independent inspecting, but in most counties they make inspections with the State inspector, one taking certain passages in the mine and the other inspect- ing a different part of the mine. The present situation with respect to county inspectors is unsatis- factory, because of the lack of definite responsibility, varying salaries and varying terms of office. For the correction of this situation two alternatives present themselves: (a) county inspectors may be con- tinued, but under a much greater degree of subordination to the state service than at present; or (b) the scheme of county inspectors may be abolished, this rendering necessary an increase in the state inspection force and an increase of state expense although not an increase of total expense for mine inspection. The second plan is thought to be the more desirable one. The mining investigation commission in its 1911 report said, "an important change and one which the commission has agreed should be made, for the purpose of securing a compact organization in the mine inspection service, directed by one board, available for use anywhere in the state and thereby providing greater efficiency, is the substitution of deputy inspectors appointed by the Governor and subject to the control of the state mining board, in place of the present county mine inspectors ap- pointed by the various county boards at their pleasure." (p. 4.) The essential part of this recommendation, that as to replacing county inspectors by an increased state inspection force, is worth adopting. If the state inspection force is increased (at least twenty inspectors will be necessary), there should be a grading of salary so that a person appointed at one salary may be promoted for efficient work. Power should also be given the state mining board to assign inspectors and transfer them from one district to another. With respect to state mining services the essential recommenda- tions for reorganization may be summarized as follows: (1) Establishment of a state mining board, which should unite the functions now exercised by the state mining board, mine rescue commission, miners' examining board, and possibly the mining investi- gation commission. (2) The grant to this board of power to make rules supplement- ing the present mining laws. (3) The appointment of a secretary, who shall have executive charge of the work of the state mining board and direct supervision over the several inspectors. (4) The abolition of the office of county mine inspector, and the increase of the state inspectional force. The work of the state mining board will, in large part be some- what different from the work handled by other branches of the proposed LABOR AND MINING. 553 department of labor. For this reason the mining board and its secre- tary should not be strictly subordinated to the department of labor, but their reports should be transmitted through that department, and reports of mine accidents should go from the state mining board to the bureau of statistics of the department of labor. With respect to workmen's compensation, matters relating to mines as well as to other forms of employment should be handled through the com- pensation bureau of the proposed department of labor. The scheme here proposed will cost perhaps a little less than that now in existence, but the cost to the state treasury will be greater be- cause of the proposed transfer of expense now borne by counties in connection with the appointment of county mine inspectors. m LABOR AND MINING. 555 ,1 An employer under the workmen's compensation act is exempt from making such reports and the factory inspector's office does not know what factories are exempt and what are not (although it would be possible to get from the industrial board a list of those coming under the compensation law). The factory inspector's office therefore not only does not get all the accident reports which it should have as a basis for its work, but also it does not get all the reports to which it is entitled under the law, for it is clearly entitled to get reports of kll accidents occurring in factories, mercantile establishments, mills, or workshops which result in a loss of fifteen days' time or more, if such establishments are not under the compensation act. The fact that some employers who previously reported accidents to this office need not do so now makes it easy for an employer to escape accident reporting altogether. In truth the factory inspector's office seems to have been under the impression that the compensation act of 1911 relieved the employer 560 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 561 ii h \ from the necessity of making any accident reports to it, and such a state- ment IS made m the report of that office (in manuscript) for 1912-13 mi^f/^'"'^ time the report of the chief state factory inspector for lyi^-U urges the desirabihty of having all accident reports come directly or indirectly to the factory inspector's office. At present this ottice gets some accident reports, but cannot be sure what proportion of accidents is reported, and for Chicago relies upon reports obtained from the police bureau. For the rest of the state the factory inspector's office rehes upon more or less haphazard information as to accidents Under the present laws the reports of accidents in mines are almost if not equally as confused as those of accidents in factories, etc. Another difficulty under which the chief state factory inspector's office would labor, even if it were trying systematically to get all acci- dent reports to which it is entitled, is that the health, safety and com- fort act of 1909 requires reports of accidents in factories, mercantile establishments mills, or workshops to go to the factory inspector's ottice, while other employers of labor are under the act of 1907 required to report accidents to the state bureau of labor statistics. In many cases It would not be clear which of these offices should receive reports from an employer of labor (who is not under the compensation act of 1913) and the result would probably be that such an employer would escape making accident reports to any state office. Under present law in Illinois no one office can make a list of all establishments required to report accidents, and systematically enforce the duty of accident reporting imposed upon employers. ^V fv ^, ^.^^ ^^^°"^ purpose of accident reporting, that of provid- ing and publishing statistical information, the bureau of labor statistics Hnn ? . m?i"' ^7'^^'* ^^'^ ^^^ °^ ^^^^ ^"^ th^ workmen's compensa- tion act of 1911 accident reports went to this bureau, except those of accidents occurring in factories, mercantile establishments, mills or rir^h^'^ 7 f^o^^^^r^"" ^^l^ "^^^"^ ^^^^^ ^^^tory inspector's office under the act of 1909. Now (under the act of 1913) accidents occur- ring m cases where the establishment is under the compensation act of 1«Q0 ^'^ '?5'^''^im /^'^ industrial board. Under the mining act of 1899, repealed in 1911, certain reports from mine inspectors went also \uut^ ^1-T ""^ labor statistics. In its 1912 report the bureau of im7 fi'^^^'^^^s compiled the reports received by it under the act of lyu/, the reports received by it as the organ administering the com- pensation act of 1911, and in addition obtained the reports made to the state factory mspector under the act of 1909. Now, however, if satistactory accident reports are to be published, the bureau of labor statistics must make sure of getting not only the accident reports coming to itself but also those coming to the chief factory inspector's ottice, to the industrial board, and to the state mining board (although all reports reaching the latter should also be in the hands of the bureau of labor statistics or of the industrial board). There is no power in the bureau of labor statistics to require the delivery to it of accident reports made to other offices, nor need the reports to the several offices be uniform. It will be a matter of surprise should the statistical reports of accidents published by the bureau of labor statistics prove at all complete or satisfactory, in the present state of the law. (3) For the purpose of enforcing the compensation act, the act of 1911 provided for accident reports to the bureau of labor statistics and the act of 1913 for reports to the industrial board. Reference has already been made to the difficulties occasioned by the act of 1913, with respect to accident reports to other offices. In addition, attention should be called to the fact that the compensation acts of 1911 and 1913 each required, except in case of death, the reporting only of "acci- dents for which compensation has been paid" under the acts, whereas those administering a compensation scheme are even more interested in accidents for which compensation may be due, but has not yet been paid. Compensation, under the act, is not necessarily paid at once but may be delayed for a period of some length. The Employer Under the Present Situation. From the standpoint of the employer the present situation is a troublesome one. If under the compensation act his position is not difficult (as that law is interpreted by the Attorney General), although a public utility under the compensation law is required to report its accidents both to the industrial board and to the public utility commission. If not under the compensation law the employer must decide whether under the law as it now stands he is to report to the chief state factory inspector's office or the bureau of labor statistics ; and it may not always be clear whether his business is or is not a factory, mercantile establishment, mill or workshop. If this point is difficult to decide the employer is apt to wait until one office or the other reminds him of his failure to report, in many cases perhaps thinking rightly that his failure will not be detected. Such a failure to define clearly the jurisdictions of the two offices probably results in incomplete accident reports from employers. Even if the point just discussed were clear, the employer's diffi- culties are not at an end. If a public utility, not under the compensation act, reports of accidents must go both to the public utilities commission and to the bureau of labor statistics. If a mine, and not under the compensation act, reports of accidents must go to the bureau of labor statistics and to the state mine inspector. Moreover, where reports to two state officers are required, the content of the reports is different and the employer is put to much unnecessary annoyance. Suggestions. If there is to be a consolidated department of labor, it will probably be best to have all reports of accidents to workmen (except those with respect to miners), go directly to the bureau of statistics; from this bureau copies could at once be forwarded to the other bureaus. Such a plan, however, would not work satisfactorily unless the central offices of all bureaus were in the same building. 562 EFFICIENCY AND ECONOMY COMMITTEE. I i Another function of a bureau of statistics may properly be that of prepann| and keeping up to date an industrial directory of the state. A definite knowledge as to what establishments are doin^ busi ness in the state is necessary, not only that full statistics may be ob- tained, but also in order that an efficient inspection of factories may be It is undesirable to have the forms for accident reporting fixed bv law. Power to determine forms for all industries except mines should be vested m the industrial commission (formed as indicated on p 84) For mmes the form should first be determined by the state mining board subject to review by the industrial commission. The forms should be so devised that an employer need make but one report for each accident. ^ ^ I f: I \ X. GENERAL SUMMARY AND RECOMMENDATIONS Recent Developments in Other States. The tendencies of labor legislation in other states have been toward (1) centralization of administration in the hands of one bureau or department, (2) a greater degree of flexibility in the labor legislation itself, and (3) a closer co-operation between employer and employee in the enforcement of labor laws. ( 1 ) Effective administration cannot be expected from a series of independent offices, with conflicting powers. Wisconsin in 1911 estab- lished an industrial commission and placed the administration of all labor legislation in the hands of this commission. Ohio in 1913 adopted a similar plan. New York and Pennsylvania have to a large extent centralized the administration of labor legislation.^® (2) The policy in this country until recently has been to enact statutes which attempt to cover in detail every contingency that may arise in connection with the guarding of machinery, etc. It is impossible to cover all such details in a statute, and to change statutory provisions quickly so as to adjust them to changing industrial conditions. The situation is much the same as that which prevailed some years ago with reference to the fixing of railroad rates. Legislatures have now realized that it is impossible to regulate rates in detail by statute, and have committed this task to permanent commissions, laying down in the statute the general principles under which the commission should act. The New York State Factory Investigating Commission said in its report" in 1913 : "The labor law is framed on what we believe to be a mistaken theory, that the requirements for the protection of the health and safety of workers should all be expressed within the four corners of the statute itself. The attempt to carry out this theory has led to the enactment of provisions so specific and rigid in their require- ments as to make their enforcement in many cases, unjust or even impossible. They fail to take into account the varying conditions in different industries. In some instances where the impossibility of setting a rigid standard for all cases was manifest, the provisions of the law were made so vague and indefinite that their meaning or application could not be determined at all, or had to depend upon the exercise of an administrative discretion, a one-man discretion, so arbitrary in character and so calculated to work injustice, that it was either not exercised at all, or when exercised, became a natural subject of distrust on the part of the courts. We believe that the only way "See Report on the Reorganization of Labor Departments in other states, appended to tnis report. "Second Report, 1. p. 30. 564 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 565 1 > of obtaining a labor law which can be enforced, is to abandon the theory underlying the labor law as it now stands ; namely, that it is possible in any statute to provide specifically the measures to be taken for the protection of the lives, health, and safety of workers in each industry and under all conditions. We are of opinion that the legisla- ture should make broad and general requirements for safety and sanitation, setting forth where practicable minimum requirements, and delegating to some responsible authority the power to make special rules and regulations to carry the provisions of the statute into effect in the different industries and under varying conditions. These rules and regulation should be collected in an industrial code that could be enlarged or changed with comparative ease from time to time as occasion might require. Such a principle is approved by all those who have given time or study to this important subject" In 1913 the New York legislature put this recommendation into effect ; and the New York example was immediately copied by Pennsyl- vania. Massachusetts and California in 1913 adopted a similar prin- ciple. Wisconsin, through her industrial commission law in 1911 (largely copied by Ohio in 1913) set the standard for legislation of this type. Rules for industry were to be made by the industrial com- mission after a hearing and were to be reviewable on appeal to the courts under certain conditions. There is no arbitrary power and every legitimate interest is properly safeguarded. Several plans of organization are possible, if the labor bureaus are to be consolidated, and if a wide power to make rules and regulations is vested in the consolidated department. Upon this subject the follow- ing quotation from the report of the New York commission is of interest : "To give one man, namely the Commissioner of Labor, the power to make rules and regulations, would be entirely out of the question. Ihis power is too great to entrust safely to any one individual. Two other methods were suggested: (1) to create a commission at the head of the Department of Labor in place of the present single com- missioner with power to make rules and regulations and to enforce them and (2) to create a board within the Department of Labor to make rules and regulations, and to leave the Commissioner of Labor at the head of the department as at present, with full power to enforce the provisions of the statute and the rules and regulations adopted by the hoard and with full responsibility for their enforcement." The Commission has carefully considered the advantages and disadvantages of each plan. We have found that there are advantages and disadvantages in each, but after careful study we have decided that the second alternative is the one likely to produce better results in the state. ^ In reaching that conclusion we were guided by the fol- lowing principles : 1. Responsibility for enforcement of law must be definitely located. 2. Administrative work can best be done by one man. . ; Q"f J^'o"s involving discretion and requiring deliberation are best decided by a body of men." "The plan we propose has the deliberative advantages of com- mission government, and the administrative advantages of a single head. The formation of a board to make, with due deliberation, regu- lations that shall carry into effect the intent and purposes of the law, will secure for the department all the benefits of a commission; and the retention at the head of the department, of a single commissioner to enforce the law and the regulations adopted thereunder, will prevent any shifting of responsibility." "The question has arisen, whether this board shall be merely ad- visory and its conclusions subject to veto by the Commissioner of Labor. We believe, however, that such veto power would not produce crood results. Nevertheless, the Commissioner of Labor should not be placed in a subordinate capacity, but should be chairman of this board and thus have an important voice in framing the rules and regulations upon which the successful administration of his department so largely depends." There are four possible plans of organization: (1) The Wis- consin plan, where the executive administration, as well as the framing of rules, is placed in the hands of a commission of three members. This plan is open to the objection that it scatters administrative responsibility for the work of the department. (2) The plan of creating a board by associating with the head of the department of labor several advisory members who do not give their whole time to the work of the board. Advisory boards, performing only occasional services, have not in gen- eral proven satisfactory. (3) The plan of creating a board by associating the chiefs of the several labor bureaus with the head of the labor department. This plan has advantages, but is open to the objection that it confers independent advisory and discretionary func- tions upon officers who are administratively subordinate to the head of the labor department. (4) The plan of associating . with the head of the department, two deputies, who should be free from administra- tive duties but devote their whole time to the work of the department, the three to act as a board for matters requiring, discretionary action. It may be objected to this plan that it proposes the appointment of two important officers who would have very little to do. Yet these deputies would have enough to do if they (a) acted as part of a board in compensation cases, in passing upon matters affecting private em- ployment agencies, and in arbitration matters (b) conducted investiga- tions and hearings upon matters affecting labor ; and acted in obtaining co-operation by employers and employees in drawing up rules applicable to particular industries (c) acted as a part of the board in adopting rules and regulations. A more serious objection is the one that friction niay result from having two officers exercising independent powers by the side of the head of the department of labor ; yet the possibility of friction is hardly as great as under the Wisconsin plan. For Illinois the choice seems to lie between the third and fourth plans suggested above, with some advantage in favor of the fourth plan. The present chief factory inspector is opposed to any plan which would vest in him a large discretion as to what rules should be observed, and such a discretion clearly should not in any case be vested in one 566 i 1 t ■( i i m ' -f.. EFFICIENCY AND ECONOMY COMMITTEE. individual. Yet at present a wide discretion is vested in the factorv inspector s office under the health, safety and comfort act and under the occupational diseases act, and the discretion here is almost neces sarily m fact the personal discretion of the individual inspector whn inspects a particular factory. ° Much of the Illinois legislation is either too rigid or too indefinite Where rigid and detailed standards are set they are often inapplicable to particular factories (or mines) and the inspector does not attemot to enforce them. Where no definite standard is fixed the inspector either does not impose one (this being perhaps the more frequent case) or he exercises an uncontrolled discretion, in first instance in doing, so ; of course the standard which he may fix in such a case is subject to review by the courts, but judicial training devolops no especial competence to pass upon the proper safeguarding of machinery Ihe health, safety and comfort act provides that dangerous places where practicable" shall be enclosed (Sec. 1), that poisonous ium^ or gases and dusts injurious to health "shall be removed, so far as practicable (Sec. 12) , and that in factories, etc., "sufficient and reason- able means of escape in case of fire shall be provided" (Sec 14) The occupational diseases act provides that the department of factory in- spection shall require the "installation of adequate and approved appliances" (Sec. 12). If under these provisions action is tfken by the department in setting a standard for a particular factory, such actionis reviewable only through a court proceeding. Greater efficiency from the standpoint of the factory department and a more adequate sateguarding of the rights of the employer will be obtained by vesting in a commission (acting under proper safeguards) power to fix general standards for each industry. Under this plan the powers of individual inspectors to fix different standards for factories in substantially the same condition would largely disappear. fn dl """"^T to;i«"^ro^ more eflFectively power granted to a commission to make rules the General Assembly in conferring such power may properly (1) fix in important matters certain maximum or minimum r fl^. ' V'T'^'?? ^^^ authority of the commission; (2) require that rules made by the commission be submitted at the next succeeding session of the General Assembly. Rules thought improper by the General Assembly could then be repealed. t- t^ j r.n. [V ^A Tu^"" (amiliar with labor administration in Illinois has recently said that the mining legislation is effective only so far as it IS enforced by agreements between employers and employees. This statement may not be altogether true, yet it is true that the enforce- ment of safeguards m industry mqst depend primarily upon the em- ployer and employee rather than upon state inspection. An inspection torce, no matter how large, cannot enforce in detail all requirements now imposed by labor legislation in Illinois. Under the Wisconsin In- dustrial Conimission law, an eflFective administration has been made possible by the fact that committees of employers and employees have been appointed for each industry to work out safety rules for that industry. The frammg of such rules has been in itself an education regarding the need for the rules framed. But such co-operation be- LABOR AND MINING. 567 tween employer and employee cannot be obtained without some degree of centralization in the enforcement oi labor laws, and some flexibility in the rules to be framed. In one or two cases factory inspectors in Illinois have already made successful efforts to work out, in co-opera- tion with employers, standards for particular industries, but little can be expected in this field without a reorganization of the officers administering the labor laws. Present Situation in Illinois. According to the census of 1910 there were in 1909, 18,026 manu- facturing establishments in Illinois employing 465,764 wage earners. Of these, 9,656 establishments, employing 293,977 wage earners, were in Chicago. There were in the same year 470 bituminous coal mines, employing 74,445 wage earners. For the enforcement of the health, safety and other labor laws with respect to these and other employ- ments there are thirty state factory inspectors (and a chief inspector) and twelve state mining inspectors. The factory inspectors operate mainly in Cook County and the mine inspectors entirely outside of that county. For the enforcement of safety appliances on railroads, safety inspectors (two at present) are provided under the public utilities commission,^^ who largely duplicate work done under federal law. Under the food inspection act of 1911, state food inspectors are required to enforce sanitary conditions for employees in the manufac- ture of foodstuffs. In earlier parts of this report reference has been made to the powers of the board of health under the occupational diseases act ; and the powers of local school, health, building, and other authorities under other acts relating to conditions in factories or other work. The following statement shows the various authorities for the administration of labor legislation, the number of persons employed, and the salaries and appropriations for the two years 1913-15 : Number Employed Bureau of Labor Statistics (and Commis- sioners of Labor) 12 Inspector of Private Employment Agencies . 10 Free Employment Offices (8) 42 Factory Inspection Department 46 Industrial Board 8 Board of Arbitration 4 State Mining Board and Mine Inspectors . . 23 Miners' Examining Board 3 Mine Rescue Commission 14 Mining Investigation Commission Miners' and Mechanics' Institutes Total 162 "Illinois Laws, 1913, p. 508. Salaries and Appropriations 1913-15 $ 28.655 30,740 108,670 164,820 79,600 14,000 103,800 16,200 95,700 10,000 30,000 $682,185 568 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 569 I The only revenue producing offices are the miners* examining board and the office of the chief inspector of private employment agencies Ihe mmers' exammmg board has just been established as a state board' i^co%P^^ 1912-13 the revenue from private employment agencies was »pl5,o25. Several of these offices (the three. first listed above) are sub- ordmated to a small extent to the commissioners of labor, but other wise each is independent in its own sphere. Moreover, the free em ployment offices are entirely independent of each other. As to accident reporting to the various offices, the situation is especially confused and accident reports in this state are incomplete and of little value The state miners' examining board, created in 1913, examines miners, while the state mining board examines mine officers. There is no satisfactory reason for two entirely independent boards. The board of arbitration has little to do, and its powers may well be bestowed upon some other board. Discretionary functions, which should properly be hand ed by a board, are exercised by the commissioners of labor (especially with reference to the revocation of licenses of private em- ployment agencies), by the board of arbitration, and by the industrial board (in hearing contests regarding compensation). All of these discretionary functions may easily and more efficiently be exercised by one board. Under present legislation, moreover, there has been no adjustment of salaries to the work done. Factory inspectors receive $1,200 in- spectors of private employment agencies $1,500, and state mine in- spectors $1,800. The character of work does not justify these differences, and here there must be some leveling up, if efficient in- spectors are to be obtained. The chief inspector of private employment agencies receives $3,600, while the chief of the factory inspection department, a much more important officer, receives $3 000 The commissioners of labor receive $150 a year, for which they are called upon to do more than the members of the board of arbitration who • receive $1,500 a year. The secretary of the board of arbitration re- ceives the same salary ($2,500) as the secretary of the commissioners of labor (the executive officer of the bureau of labor statistics), yet one office has apparently had few duties while the other requires continuous service. An even more serious situation exists with reference to the appoint- ment of officers administering labor legislation. The civil service law exempts from its terms officers appointed by the Governor, subject to confirmation by the Senate. The Attorney General has ruled ap- parently that this exempts all officers who were by law to be appointed by the Governor. The superintendent, assistant superintendent and a clerk of each free employment office are appointed by the Governor with the advice and consent of the Senate, and are clearly exempt from civil service, as are also members of the board of arbitration, state mining board, miners' examining board, industrial board and commissioners of labor. Under the terms of the law, the mine rescue commission is appointed by the Governor alone. The chief inspector of private employment agencies, the chief factory inspector, the factory inspectors and several other officers of the factory inspection depart- ment, and state mine inspectors, were by law made appointive by the Governor, and are exempt from civil service under the Attorney General's ruling. For mine inspectors the state mining board conducts an examination and appointments are for a two-year term. The clerical forces are appointed under the civil service law, as are also deputy inspectors of private employment agencies, and the secretaries of the board of arbitration and the bureau of labor statistics. How- ever, there is for the body of technical positions no guaranty of technical efficiency or permanence of tenure. The annual reports of the various offices do not cover the same period. Reports for the year ending June 30 are now made by the chief state factory inspector, by the inspector of private employment agencies, by the state mining board, and reports for the same period are to be made by the industrial board. Reports of the free employ- ment offices are made for the year ending September 30, the report of the bureau of labor statistics on accidents is made for the year ending December 31, and the report of the miners' examining board is to be made on the first day of March, so that the results shown by these reports are not comparable with those of the other offices. Under present legislation in Illinois it is natural that no systematic effort should have been made to view the labor problem as a whole and to co-ordinate the activities of all the state offices. A number of the less important laws are not committed to any one of the present offices for enforcement. The best single piece of individual investiga- tion of a labor problem in this state was done, not by a permanent office, but by the special commission on occupational diseases. Recommendations. (1) That all labor bureaus and offices be consolidated into a Department of Labor and Mining which should have the following bureaus or divisions : (a) Bureau of Statistics. (b) Bureau of Inspection, to cover the work now under- taken by the factory inspection department. (c) Bureau of employment, to operate public employment offices and to inspect private employment agencies. (d) Bureau Of Workmen's Compensation. (e) Bureau of Arbitration and Mediation. (f) Division of Mining. Much may be said for the plan of organizing an industrial com- mission and giving it full power to create bureaus and appoint its subordinates. From a practical standpoint, however, it will probably he necessary to provide by statute for bureaus to perform functions now performed by existing bureaus and offices. It would be desirable to give the commission power to create new bureaus, and transfer functions and officers from one bureau to another. The commission should also have some power to determine the salaries of its sub- ordinates, and the number of employees to be used in several bureaus. •^-^.d- 570 EFFICIENCY AND ECONOMY COMMITTEE. hi !'!; 1 I; ^"?\°^a^^^^ administrative detail now in the statutes should be omitted. This is especially true with respect to free employment offices and the inspection of private employment agencies. (2) That the department of labor be under a commissioner as an administrative head ; that each bureau be under a single chief of bureau. The division of mining should have a secretary, as executive otticer, and a State mining board to exercise the powers of the several minmg boards. For an outline of suggestions with respect to mining see pp. 64-6/. ^' *u ^^\ P^* *^° deputies to the commissioner of labor be provided they with the commissioner to act as an industrial commission for the tunctions which more properly require board action. The deputies should also have power individually to hold hearings and investigations upon matters affecting labor or any of the laws committed to the de- partment of labor for enforcement. (4) To the commissioner and deputies as a board should be granted wide power to niake regulations governing conditions of labor such regulations to be made after hearing, and subject to court review as m Wisconsin. This would be no more open to constitutional ob- jection than is the delegation of rate-making power to the public utilities commission. If such power is conferred, there should in any dl't^tTf""! ^ ^'^''']^ !^^^' i^^'' ^^ ^ provision that the present detailed statutory regulations shall remain in force until the subjects in each particular case have been covered by regulations issued under the authority of the new department of labor. hn ^Pu ^!? P^'"'''" inspecting factories, etc., under one law should have full authority to enforce all labor laws. The penalties imposed under the several laws should be more uniform than at present. If carried out, these recommendations would permit an adjust- ment so far as concerns the present situation with respect to accident reporting, and would make necessary some co-ordinated management of public employment offices. In addition it would make it possible to work out an effective administration of labor legislation as a whole. It should be suggested, however, that much of the advantage of a consolidation of labor offices will be lost unless arrangements are ThI LT' aT ""-^"^^ ^.^', ^^^ ^''"'^"- ^^^^^^^^- of related bureaus. 1 he scattered location of the present offices is such as to make co- operation difficult, were such co-operation sought. The offices of the tactory inspection department, industrial board, and chief inspector Jf^ZZTu .^:?P^^y^e"t agencies are in Chicago, and each is in a different building. The secretary of the state board of arbitration also has an office in Chicago. The mining boards and the bureau of labor statistics (with what supervision exists over free employment offices) are in Springfield. For a consolidated department all of the central offices should be in one building; and if particular bureaus require offices in other parts of the state, all of such branch offices in any one city should be in the same building. This statement, however, should ^^LrA -"11 ^"^Ploy"?e"t offices, where it is desirable to have several offices in the same city. LABOR AND MINING. 571 (6) The enforcement provisions of some of the laws should be made more effective, as, for example, by so amending the hours of labor law for women as to penalize the obstructing of an inspector. (7) Attention has been called in a number of places throughout this report to defects in the substance of legislation. So, for example, with respect to child labor laws, a medical certificate should be required of children where there is no evidence of age except the parent's statement, children between the ages of 14 and 16 should be required to read and write in English before being given certificates entitling them to work, and a duty" should be imposed upon inspectors to require medical certificates of children between 14 and 16 who appear to be physically unable to work. Inasmuch, however, as the work of this committee is that of dealing with administrative organization and methods, it would hardly be wise to attempt a thoroughgoing revision of the substance of labor laws. If the plan here recommended is adopted, the expense of the new organization will probably be equally as great as that under the present •organization. Of the general labor boards whose abolition is recom- mended, the members of the board of arbitration receive $4,500, the members of the industrial board, $12,000 ; and the commissioners of labor $750. The commissioner of labor and his deputies (under the plan recommended) should receive rather large salaries, and a chief of the compensation bureau must replace the present industrial board. The salaries for new offices would therefore, probably equal those of the abolished positions. Substantially the same statement will hold as to the recommenda- tions with respect to a reorganization of mining services. It is recom- mended that the mine rescue commission be aboHshed, but this is a per diem commission the payment of whose members does not consti- tute a heavy expense. It has been recommended also that the miners' examining board be abolished as an independent board, but an equal cost must be incurred by the establishment of a subordinate board to conduct examinations of miners. With respect to the reorganization of mining services it has already been suggested that an increased expense to the state treasury (but not an increased total expense) will he incurred by the abolition of county mine inspectors and the increase in the number of state mine inspectors. This statement regarding relative expense leaves entirely out of account any changes which may result from a proposed equalization of salaries throughout the whole state service. Legislative Methods of Carrying the Above Recommendations into Effect. The present labor legislation of Illinois is scattered through a number of acts, and each office or bureau is vested with certain powers by the act creating it. To centralize the administration of labor laws, will, therefore, require the changing of provisions now found in at least eight separate acts. If the substance of legislation * IS not to be materially changed the problem here is to create a new organization and to carry over to this new organization all powers now vested in a number of independent offices by different laws. 572 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 573 > ' if'..' The constitution provides that '*no law shall be revised or amended by reference to its title only, but the law revised or the section amended •shall be mserted at length in the new act"; and also that "no act here- after passed shall embrace more than one subject and that shall be expressed in the title." A single act, providing for a new organization and carrymg over to the new organization the substance of present legislation as embodied in a number of acts, would pretty clearly be unconstitutional because not complete in itself. ^^ It may be possible to embody the new organization in one act, and then in the same act, by separate sections, to amend each of the present acts in its enforcement provision, setting out in full the section of each such act as amended. But this would be opposed to the spirit of the constitution, by amending a number of separate acts in terms by one amending act, and would probably be defeated on the ground that more than one subject is embraced in an act which amends a number of previous laws, even though these laws relate generally to the same subject.^* The choice of procedure, then, lies between (1) a series of specific bills, one creating the new organization, and one for the amendment of each specific act whose enforcement provisions are being changed, or (2) a complete re-enactment or revision of the labor laws of the state. The first plan presents a difficulty in that it submits the pro- posed changes piecemeal to the General Assembly. The second plan IS essential if many changes are to be made in the substance of the present legislation, and a re-enactment will be the most feasible method of making the administrative changes even though few changes of substance are contemplated. The report as prepared deals primarily with labor legislation which IS now committed to some administrative authority for enforce- ment or which should be so committed. There are a number of other laws relating to labor which have, therefore, not been discussed. Of laws of this character printed in the recent compilation issued by the bureau of labor statistics, the following may be mentioned : apprentices (p. 9) ; boycotting and blacklisting (p. 37) ; legal day in absence of contract (p. 49) ; permitting women to engage in any lawful occupa- tion (p. 50); garnishment (pp. 82, 90); mechanics' liens (p. 121); payment of wages (pp. 174, 257-260, 263, 264) ; wage loan corpora- tions (p. 260). /' fi p The question presents itself as to whether the redraft should in- clude merely the laws enforcible through administrative machinery, or should include all labor laws of the state, whether enforced bv the administrative organization or merely by judicial proceedings. The redraft is being made primarily in connection with a proposed administrative reorganization, and for this purpose it is unnecessary to include laws not to be enforced by the administrative authorities. On the other hand it is desirable to have all the labor legislation con- solidated into one act, so that any one may find all the law upon this subject easily. Moreover, the legislation not enforcible bv administra- — ^ "People ex rel Cant y Crossley, 261 111. 78; Brooks v. Hatch, 261 111. 179. "See Kennedy v. LeMoyne, 188 111. 255. live authority is relatively small in bulk as compared with that so enforcible. For these reasons it seems desirable to place all labor legislation in one bill. If all labor legislation is to go into one bill the question presents itself as to what shall be excluded and what included. Wage loan corporations bear a close relation to the subject of labor yet this relation seems hardly close enough to justify the inclusion of legisla- tion relating to this subject. The subject of apprentices bears an even closer relation, but raises problems involving the substance of legisla- tion in such a manner that its inclusion would hardly be desirable. The apprentice and wage loan corporation acts are sufficiently distinct to be left to themselves. The same statement is true of garnishment and mechanics' liens. If these laws are excluded from a redraft, the other laws enumerated above (and other similar laws found in the statutes) may well be included. LABOR AND MINING. 575 ^1 liif I :\ XL SUMMARY OF RECENT LEGISLATION IN OTHER STATES A summary is here presented of some of the more important recent legislations of other states. Wisconsin and Ohio on the one side and New York and Pennsylvania on the other, present two types of organization for consolidated labor departments. In both types the two objects are sought: (1) of uniting labor services under one con- trol; (2) of permitting flexibility in the regulations to be applied to labor conditions. ^^ In the other states here discussed these two objects have not been accomplished. Massachusetts, California and Oregon have sought to provide flexibility as to rules to be administered, but without consolidating their various labor services. Kansas has concentrated the administrative organization, but without introducing any flexibility in the body of rules to be administered by that organization. 1 he Wisconsin law has been longest in operation, and has to a very arge extent accomplished the three-fold purpose: (1) of co-ordinating the administration of all labor laws ; (2) of providing a flexible body of rules better adapted to meet the needs of the state; and (3) of obtain- ing co-operation between employers and employees. Nothing appears in the Wisconsin law which requires the commission to work out rules and regulations in co-operation with employers and employees in the various industries, but such co-operation has been obtained, and is expressly authorized in the Wisconsin law by a provision authorizing the commission to appoint advisers who shall without compensation assist the industrial commission in the execution of its duties." The Wisconsin Industrial Commission. In 1911 the legislature of Wisconsin adopted a law creatin^r an industrial conmussion and consolidating in its hands the functions^ for- mer y exercised by the bureau of factory inspection, the board of arbitration and conciliation and the state liability board of awards. 1 he latter board had been established in the same year by the work- men s compensation law. Numerous other departments and bureaus concerned with the administration of the labor laws were abolished and tlieir powers vested in the newly created commission. The commission is composed of three members, appointed by the governor for a term of six years. The commission may appoint and remove deputies, clerks and other assistants and may assien its emp oyees to their duties and fix their compensation. The number of employees shall not exceed "the number now employed in the bureau ot industrial and labor statistics except on certificate of the governor hied with the secretary of state, that such additional employee is neces- sary to the work of the commission." The commission has the furtlicr power of appointing advisors who shall assist the commission in carrying out its investigations, and give advice and make recommenda- tions to the commission when called upon to do so. The commission may appoint any deputy a special prosecutor in any case arising under die labor laws or the rules of the commission. Before defining the powers of the commission the act provides certain general rules of conduct for employers. Every employer is directed to furnish a safe employment, to provide a safe place of employment for employees therein and frequenters thereof, and to adopt such safety devices as may be reasonably adequate to protect the safety and welfare of his employees. No employer shall permit an employee to enter a place that is not safe and no employee shall remove, damage or destroy any safety device or prevent its use by any other person. Every employer or owner is directed to so construct, repair and maintain places of. employment or public buildings as to render the same safe. Finally every employer is required to furnish informa- tion to the commission and to answer, to the best of his ability, *'any question that may be propounded by the commission." The general power of the commission is stated in the following terms: *'The industrial commission is vested with power and juris- diction to have such supervision of every employment and of every place of employment and public building in this state as may be neces- sary to enforce and administer all laws and all lawful orders of the commission requiring such employment, place of employment or public building to be safe, and requiring the protection of the life, health, safety and welfare of every employee in every such employment or place of employment and every frequenter of such place of employment and the safety of the public or tenants in any such public building." It is the duty of the commission *'to administer and enforce so far as not otherwise provided for in the statutes the laws relating to child labor, laundries, stores, employment of females, licensed occu- pations, school attendance, bakeries, employment offices, intelligence offices and bureaus, manufactures of cigars, sweatshops, corn shredders, wood sawing machines, fire escapes and means of egress from build- ings, scafifolds, hoists, ladders and other matters relating to the erection, alteration, repair or painting of buildings and structures, and all other laws protecting the life, health, safety, and welfare of employes in employments and places of employment and frequenters of places of employment." As suggested above the duty to provide safe employment is im- posed in general terms upon the employer. Power is then vested in the commission to work out the rules applicable to different circum- stances and conditions. The commission is expressly authorized : "To investigate, ascertain, declare and prescribe what safety devices, safe- guards or other means or methods of protection are best adapted to render the employes of every employment and place of employment and frequenters of every place of employment safe, and to protect their welfare as required by law or lawful orders, and to establish and main- tain museums of safety and hygiene in which shall be exhibited safety aevices, safeguards and other means and methods for the protection Qt hfe, health, safety and welfare of employes." 576 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 577 "To ascertain and fix such reasonable standards and to prescribe modify and enforce such reasonable orders for the adoption of safety devices, safeguards and other means or methods of protection to be as nearly uniform as possible, as may be necessary to carry out all laws and lawful orders relative to the protection of the life, health and safety and welfare of employes in employments and places of employment or frequenters of places of employment." "To ascertain, fix and order such reasonable standards, rules or regulations for the construction, repair and maintenance of places of employment and public buildings, as shall render them safe." "To investigate, ascertain and determine such reasonable classifica- tions of persons, employments, places of employment and public build- ings, as shall be necessary to carry out the purposes of this law." The term "safety" is broadly defined in the act as "such freedom from danger to the life, health, safety or welfare . . . as the nature of the employment . . . will reasonably permit." Upon its own motion or upon petition the commission may investi- gate any employment, place of employment or public building, and "after such hearing enter such order as may be necessary to render such employment, place of employment or public building safe." All orders so issued are prima facie reasonable and lawful and shall be in force until altered by the commission or set aside by the courts. The commission is empowered to make rules to govern its proceedings and "to regulate the mode and manner of all investigations and hearings." The order-making power of the commission does not interfere with the power of any city or village to make regulations of the same char- acter save where such local regulations are in conflict with the rules of the commission. If any employer or other person interested wishes to raise the question of the reasonableness of any order of the commission he may do so by petition to the commission. This petition shall set forth in full detail the reasons why such order is unreasonable and any objection not raised in the petition shall be deemed to be waived. The commission may grant or refuse a hearing upon the petition. If the commission refuses a hearing, or if upon hearing it sustains its former determina- tion the petitioner may proceed in court against the commission. Any person aflfected by any local order may also petition for a hearing on the ground that the order in question is unreasonable and in conflict with the orders of the commission. Upon receipt of the petition the commission shall hold a hearing in the city or village where the ques- tion has arisen and may after such hearing modify its own order or substitute for the local order appealed from such order as shall be reasonable. After a petition for hearing has been denied or after an unfavor- able decision by the commission on such hearing "any employer, owner or other person in interest being dissatisfied with any order of the com- mission may commence an action in the Circuit Court of Dane County against the commission as defendant to vacate and set aside such order on the ground that the order is unlawful, or that any such order is unreasonable." If it appears on trial of such action that the issues raised have not come before the commission the court shall transmit to the commission a full statement of such issues and stay proceedings for fifteen days awaiting further decision of the commission. The commission shall report its determination of the issues presented to the court, which shall then proceed with the action. Acting under the powers here outlined the commission has exer- cised its rule-making authority somewhat as follows: It established an advisory committee on safety and sanitation which was composed of representatives from the State Federation of Labor, the Milwaukee Merchants' and Manufacturers' Association, Milwaukee Health De- partment, Wisconsin Manufacturers* Association, Employers' Mutual Liability Company, and the Industrial Commission. Sub-committees were organized composed of manufacturers, technical experts, repre- sentatives of labor and of the commission, on the subjects of elevators, boilers, electricity, sanitation, safety exhibit, and bakeries. The committees thus constituted proceeded to make their investi- gations, to draw up tentative rules and to submit them to the commis- sion for public hearings. After the hearings the rules were referred back to the committee for further inspection, and finally, when completed, they were issued by the commission as "general orders" applying to the entire state, and published in the official paper and the bulletins of the commission. The violators of such orders cannot contest the reasonableness of the orders when prosecuted, but the legality of the orders can be tested only in a proceeding against the com- mission as provided in the act. The commission is directed to do all in its power to promote vol- untary arbitration of labor disputes. It shall appoint one deputy who shall be known as "chief mediator," appoint temporary boards of mediation, make rules for the procedure of such boards and fix the compensation of members. Furthermore the commission is charged with the establishment of free employment bureaus and with the investi- gation of unemployment. An amendment to the act, passed in 1913, empowers the commission to oversee private employment offices, to issue licenses for the maintenance of such offices, to inspect the books, con- tracts and registers of such offices, and to revoke the license of any office for cause. Finally, the board is directed to collect statistics and make reports concerning the work under its jurisdiction. The Industrial Cominission of Ohio. In 1913 the Ohio legislature created an industrial commission and centralized in its hands the functions formerly exercised by the state liability board of awards, the state board of arbitration and conciliation, the board of boiler rules, the commissioner of labor, the chief inspector of mines, the chief inspector of workshops and factories, and the chief exarniner of steam engines. The Ohio act is modelled after the Wis- consin industrial commission law, many sections of which are copied verbatim. The Ohio commission is composed of three members, appointed by the governor for a term of six years at a salary of $5,000 a year. Each member of the commission is forbidden to hold any position of trust or profit that will interfere with the performance of his duties as 578 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 579 commissioner and is required before he enters upon the duties of his office to declare upon oath that he holds no office under the committee of a political party. Neither the employing class nor the labeling class shall be represented in the commission by more than one member each, and not more than two commissioners shall be of the same political party. The commission elects its own chairman. The commission is required to be in session during all business hours, and all sessions are open to the public. At such sessions all voting shall be by roll call and the vote of each commissioner shall be recorded. The act forbids an employer "to permit employees to go or be in any employment or place of employment which is not safe" and re- quires him **to adopt and use methods and processes, follow and obey orders, and prescribe hours of labor reasonably adequate to render such employment and place of employment safe," and to do "every other thing reasonably necessary to protect the health, safety, and welfare of such employees and frequenters." The clauses of the Ohio act which specify in detail the jurisdiction of the commission are more inclusive than those of the Wisconsin act. The Ohio commission is directed to enforce all laws relating to manu- facturing establishments, mines, "buildings used for the betterment of the people of the state," building operations, hours of labor, means of egress from buildings, explosives, employment of women and min- ors, child labor and school attendance. The parts italicized indicate additions to the Wisconsin act. Several places of employment such as cigar factories, bakeries, telegraph offices and launderies are specifically enumerated in the act. In Ohio the commission also has the power to fix hours of labor reasonable and adequate to the protection of the life, health, safety and welfare of employees. It is also empowered to license, after examination, persons to act as steam engineers and oper- ators of steam boilers. Aside from these provisions the powers of the commission in Ohio are the same as those of the commission in Wisconsin. In the matter of rehearings the Ohio law follows the Wisconsin act. In the case of court review, however, it is provided that the su- preme court of the state shall have original jurisdiction in all actions brought to set aside a rule or order of the commission. The New York Department of Labor, The re-organization of the department of labor in New York came as the result of the report of the "Factory Investigating Commission" which was created to investigate the conditions under which manu- factures were carried on in cities of the first and second class in the state. This commission recommended a" plan whereby the rule-making power, in matters of labor control, should be vested in a board and should remain separate from the power of enforcement, which should be exercised by the commissioner of labor. The act of 1913 places at the head of the re-organized department a commissioner of labor appointed for a term of four years by the governor, with the advice and consent of the senate. This officer re- ceives a salary of $8,000 a year. Serving under the commissioner are first and second deputy commissioners appointed by him and holding their offices during his pleasure. In case of absence or disability of the commissioner the first deputy exercises all the powers of the commis- sioner save that of appointment, the commissioner also has power to aoooint all officers, clerks, and other employees save as otherwise pro- vided in the statute. Special provision is made for the appointment, by the commissioner, of an attorney who shall act as counsel for the department. Under the act bureaus of inspection, mediation and arbitration, statistics and information and industries and immigration are erected. Such other bureaus may be established by the commissioner as that officer deems necessary. ' The general power of administering oaths, taking affidavits and issuing orders in accordance with the act, subject to the approval of the commissioner, vests in every administrative officer of the commission, and their, rights of interrogation and investigation are not to be hindered or obstructed by any person. The law provides for an industrial board to be composed of four associate members, appointed by the governor, with the commissioner of labor as ex-officio chairman. Associate members are appointed tor four years and receive annual salaries of $3,000. The board may ap- point and remove its own clerical staflf and may call upon the counsel of the department of labor to give necessary legal advice. The industrial board holds regular meetings once each month and all such other meetings "as the needs of public service may require." All meetings are to be open to the public. The board has the power to investigate all matters "touching the enforcement and effect of the provisions of this chapter and the rules and regulations made by the board thereunder," to require the attend- ance of witnesses and the production of books, to administer oaths and take affidavits. It is entrusted with power to make rules for the carrying into effect of this act, applying the provisions of the act to specific conditions. More specifically the board has power to make rules and regulations for the construction, equipment and maintenance of places of employment, for the arrangement and guarding of machin- ery, for the methods and operations by which trades and occupations are conducted and for the conduct of employes and other persons about factory buildings and mercantile establishments. These regulations of the commission are to be adopted and enforced in the light of the intent of the law that all "places to which this chapter is applicable shall be so constructed as to provide reasonable and adequate protection for the lives, health and safety of all persons employed therein." The act provides that : "The rules and regulations adopted by the board pursuant to the provisions of this chapter shall have the force and effect of law and shall be enforced in the same manner as the provisions of this chapter. Such rules and regulations may apply in whole or in part to particular kinds of factories or workshops, or to particular machines, apparatus or articles; or to particular processes, industries, trades or occupa- iH i^ 580 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 581 tions; and they may be limited in their application to factories or workshops to be established, or to machines, apparatus or other arti- cles to be installed or provided in the future." In a number of places throughout the New York law there are further specific grants of power to the board to make regulations re- garding elevators, the construction of factory buildings, the guarding of machinery, and regarding especially dangerous occupations. The New York law is detailed and the power of the board is almost entirely that of making supplementary rules or rules for matters not already covered by statute. With regard to elevators for example the statute is somewhat detailed, and then provides that the industrial board "shall have power to make rules and regulations not inconsistent with the provisions of this chapter" regarding elevators. The rule-making power of the New York industrial board is more limited than that of the Wisconsin industrial commission. There is no provision in the New York statute as to the manner of testing the legality of rules made by the industrial board. The bureau of inspection which is created by the law is divided into four "divisions," factory inspection, homework inspection, mer- cantile inspection and industrial hygiene. Each of these divisions is under the direct control of a division chief. The first deputy commis- sioner is the inspector general for the state and is in charge of the work of the first three divisions subject to the directions of the com- missioner. The division of industrial hygiene is under the direct control of the commissioner. Should it appear that new divisions are necessary the commissioner is empowered to create them. Under the chief of the division of factory inspection there are seven grades of inspectors each with special duties to perform. Many of these inspectors are required to possess special qualifications. The inspectors are charged with the visitation of all factories in the inspec- tion divisions to which they are assigned and are empowered to enforce the provisions of the act in all such factories. They are also charged with the enforcement, jointly with municipal authorities, of all munici- pal ordinances regulating labor, if such ordinances are not in conflict with the provisions of the act. The mercantile inspectors may be divided into three grades and are required to perform the same duties of visitation and enforcement in mercantile establishments as the factory inspectors in their field. The bureau of statistics and information is directed by a chief statistician, under the supervision of the commissioner of labor. The bureau has five divisions : general labor statistics, industrial directory, industrial accidents and diseases, special investigation, and printing and publication. The division of industrial directory is requred to prepare annually a directory of all the cities and villages with a popula- tion of over 1,000, which shall contain information concerning the hours, wages and conditions of labor and whatever intelligence regard- ing the opportunities for labor or industry in such city or village as may be obtainable. The other divisions of the bureau have the func- tions which are indicated by the name of the division in each case. The Pennsylvania Department of Labor. In 1913 Pennsylvania created a Department of Labor and Industry The new department is modeled after the New York Department of Labor The Governor, with the consent of the Senate, appoints a commissioner of labor and industry, who is the adm^mstrative head of the department and who is charged with the responsibility of executing the labor laws of the state. He is authorized to appoint and remove at pleasure all officers, clerks, and other officers of the depart- ment, except as provided in the act. He is a member of the industrial board and serves in the capacity of chairman of that body. He is also in immediate charge of the division of industrial hygiene— a division of the bureau of inspection. The department is divided into three bureaus, but this number may be increased by the commissioner with the consent of the Governor. The bureaus established by the act are: the bureau of inspection, the bureau of statistics arid information and the bureau of arbitration. At the head of the bureau of inspection is a chief inspector, ap- pointed by the commissioner. This officer may in the absence of the commissioner exercise all the powers of that officer save that of appoint- ment. He has full charge, subject to the supervision of the commis- sioner, of all inspections made in accordance with the provisions of the act. The bureau of statistics and information is in charge of a chief, appointed by and working under the direction of the commissioner. The act provides in considerable detail what the fields of investigation shall be. Particular emphasis is placed upon the duty of the bureau to investigate the welfare of aliens, to gather information concerning the labor supply furnished by aliens, to ascertain for what employments they are best fitted, and to place them in communication with employ- ments requiring labor. The bureau of mediation and arbitration is in charge of a chief appointed in the same manner as indicated above. In case of a strike the chief shall oflfer mediation. If this is rejected he is to use his best efforts to bring about voluntary arbitration of the questions in- volved. Under the act, in cases of voluntary arbitration the employer selects one member of the arbitration board, the employee another, and the two choose a third. In case the two fail to select the third member within five days the chief of the bureau becomes a member and shall act as chairman. The Pennsylvania law, like that of New York, provides for the establishment of an industrial board. This board is to consist of the commissioner and four associate members, appointed by the Governor with the consent of the senate, "one of whom shall be an employer, one a wage earner, and one a woman." The associate members receive a per diem. The board may appoint a secretary who shall be paid a salary fixed by the board. The industrial board is vested with the power of investigating, either as a board or as individuals, "all matters touching the enforce- ment of laws, the enforcement of which is entrusted to the department, flpi 'Hi i 582 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 583 and the rules and regulations of the industrial board in connection therewith." Its power to make rules and regulations is conferred in the . following language: *'A11 rooms, buildings, and places in this commonwealth where labor is employed, or shall hereafter be employed, shall be so con- structed, equipped, and arranged, operated and conducted, in all re- spects, as to provide reasonable and adequate protection for the life, health, safety, and morals of all persons employed therein. For the carrying into effect of this provision, and the provisions of all the laws of this commonwealth, the enforcement of which is now or shall hereafter be entrusted to or imposed upon the commissioner or depart- ment of labor and industry, the industrial board shall have power to make, alter, amend and repeal general rules and regulations necessary for applying such provisions to specific conditions, and to prescribe means, methods, and practices to carry into effect and enforce such provisions." The rules and regulations made by the board are to be printed in the newspapers and in the bulletins of the department. Any person interested may appeal to the commission for a hearing upon any order or regulation. The petition shall set out in full the rea- sons why the rule or regulation in question is unreasonable. The board may either grant the petition and set a time and place for a hearing or, if "it believes the issues raised in such petition have been heretofore ade- quately considered" merely confirm its previous determination. The act makes no provisions for judicial review of the final determinations of the board. The Pennsylvania law provides that the attorney general may appoint and may remove an attorney who shall act as counsel for the department. The commissioner may employ additional counsellors to be designated by the attorney general. In this particular the Pennsyl- vania law differs from other laws examined. Massachusetts. By an act of 1907, amended in 1909, Massachusetts provided for the appomtment of a board of boiler rules, with power **to formulate rules for the construction, installation and inspection of steam boilers." This board was required to hold hearings at certain stated times, and to hold additional hearings after notice should it deem it advisable to change rules which were already in force. It was further provided that "the rules so formulated shall be submitted to the governor for his approval." ^In 1913 a board of elevator regulations was created with powers similar to those exercised by the board of boiler rules. By legislation of 1910 the state board of health was authorized "to determine whether or not any particular trade, process of manufacture or occupation or any particular method of carrying on such trade, proc- ess of manufacture or occupation, is sufficiently injurious to the health of minors under eighteen years of age employed therein to justify their exclusion therefrom, and every decision so rendered shall be conclu- sive evidence of the facts involved therein, except as the same may later be revoked or modified by a stibsequent decision of the board." 'For operations under this law, see American Labor Legislation Review, ^1 / \J» An act of 1912, creating the board of labor and industries, vested in that board a power '*to make rules not inconsistent with existing law" for carrying out the provisions of the act. An act of 1913 vested in this board also the power previously exercised by the state board of health with respect to minors in dangerous employments. By the industrial compensation act of 1911 a Massachusetts* Employees' Insurance Association was provided for, and this associa- tion was authorized to make and enforce reasonable rules and regula- tions for the prevention of injuries on the premises of the subscribers." Appeal from such rules and regulations might be taken to the indus- trial accident board, and that body was granted power "to affirm, amend or annul the rule or regulation." The most important step in the direction of granting a rule making power was taken in 1913, by an act concerning the itivestigation and prevention of occupational diseases and the prevention of accidents in factories. This act provides that the state board of labor and indi;s- tries and the industrial accident board, sitting jointly, shall have power to investigate employments and places of employment in the state and ''determine what safety devices or other reasonable means or require- ments for the prevention of accidents and for the prevention of indus- trial or occupational diseases shall be adopted or followed in any or all employments or places of employment; and shall make reasonable rules, regulations or orders for the prevention of accidents and the prevention of industrial or occupational diseases." Such rules may apply to both the employer and the employee. The joint board may appoint committees of employers and employees in any industry to rec- ommend rules which are calculated to make the employees in that indus- try safe. No rule or recommendation shall be adopted until a hearing has been held thereon. The joint board is empowered to make the rules for such hearing and to serve notice upon parties in interest. The statute provides that any rule or regulation of the Massa- chusetts employees' insurance association, approved by the industrial * accident commission, shall not prevail if it conflicts with any of the rules of the joint board. The act also requires the joint board to make arrangements to prevent the duplication of effort between the two bodies that compose it. The power of administering the labor laws of Massachusetts is distributed among various boards, bureaus and departments. This has resulted in a duplication of effort and an overlapping of authority, and has operated to defeat in part the operation of the labor laws. An attempt to remedy these faults by the creation of a board of labor and industries in 1912 met with little success. The new board, so far as consolidation of function is concerned, increased, rather than lessened, the confusion. The following is a brief summary of the existing departments in Massachusetts charged with the execution of the labor laws: The board of conciliation and arbitration is empowered to arbitrate labor disputes on application of either party. Parties to such disputes may, ho\yever, select other arbitrators if they so desire. The bureau of sta- tistics is charged with direction of free employment offices, as well as the collection and publication of statistics. The minimum wage board 584 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 585 t ft m ) Si may recommend a minimum wage for women or minors in any occupa- tion, but its power of enforcement is limited to the publication of the names of employers who do not adopt the minimum wage recommended by the board. The industrial accident board (composed of five mem- bers) is charged with administration of the workmen's compensation law and has power to review the rules of the board of directors of the Massachusetts employees' insurance association. The board of health is charged with a number of laws regarding industrial health condi- tions. The board of labor and industries (also composed of five mem- bers) is charged with the inspection of factories, the enforcement of various laws relating to the employment of women and children, the inspections of buildings used for industrial purposes, and the investiga- tion of complaints concerning labor conditions. Some of the former powers of the state board of health as well as those of the inspection department of the district police were vested in the board. Express provision was made, however, for the retention of the powers of build- ing inspection and boiler inspection by the district police. California. In 1913 California adopted an act creating an "industrial welfare commission." This act provides for a board of three persons appointed by the governor for a term of four years at a salary of $5,000 a year. The act divides into two parts, the first dealing with workmen's com- pensation and with the administration of the "state compensation insurance fund," the second dealing with the regulation of conditions of labor in the state. The administration of both parts of the act is in the hands of the commission. All other labor matters are outside the scope of the commission's authority. Full power is given the commission to appoint an attorney, a sec- retary and necessary assistants, a manager of the state compensation insurance fund, a superintendtent of the department of safety, and whatever other assistants, experts, statisticians, referees and other officers it may consider necessary to carry out the duties and exercise the powers vested in it. All the officers and employees of the Com- mission "shall receive such compensation for their services as may be fixed by the Commission, shall hold their offices during the pleasure of the board and shall perform such duties as may be imposed on them by law or by the Commission." The Commission has power to appor- tion the money at its command among its several departments as their needs may demand. In its capacity as administrator of the compensation law the Com- mission is vested with authority to hear and determine all cases, and with all the other powers necessary for the carrying into effect of its decisions and awards. The board may grant rehearings upon applica- tion in proper form and in all cases its final determination of the ques- tions presented is subject to court review. Under the safety provisions of the act the Commission is vested with full power and jurisdiction- over every employment and place oi employment in the state, and is charged with the administration of all laws rendering such employments or places of employment safe for the employees therein. To carry out this duty the Commission is empow- ered, after hearing upon its own motion or upon complaint, to fix rea- sonable standards of safety and to enforce their adoption, to prescribe such safety devices as are adapted to render employes in every employ- ment safe, to fix the standards of construction and repair, and to require the performance of any other act necessary to the safeguarding of the employees in any employment. Furthermore, the Commission has the power, after hearing to order the installation of such repairs or improvements as it may consider necessary in any place of employment. All orders of the Commission "in conformity with law are prime facie lawful and all its rules and regulations, decisions, orders or awards are conclusively presumed to be reasonable till set aside by the commission upon rehearing or by the courts upon review." The Commission is given power to establish museums of safety and hygiene, and to cause bulletins to be printed and lectures to be delivered dealing with prevention of accidents, occupational diseases, and related subjects. It may appoint advisers who shall aid in fixing standards of safety. Fines levied for failure to comply with orders of the Commission shall be paid into an "accident prevention fund." In the matter of hearings the commission shall have full power to prescribe rules of procedure, to provide for the appearance of minors and incompetents, and to appoint guardians ad litem. The commission is further empowered to appoint referees either for the complete trial of all issues, whether of fact or of law, or "for the ascertaining of a particular fact necessary to the commission to determine any proceed- ing before it." Tlie findings of the referee in such instances shall be filed with the commission within twenty days and the commission may then "adopt, modify or set aside the same or any part thereof." The grant of power to the Commission closes with the general pro- vision that "The commission is hereby vested with full power, author- ity and jurisdiction to do all things, whether herein specifically desig- nated or in addition thereto, which are necessary or convenient in the exercise of any power or authority or jurisdiction conferred upon it by this act." Any party aggrieved by any rule, regulation, order, or decision of the commission may apply to it for a rehearing. The application must set forth in full detail the grounds upon which the rehearing is sought and the applicant is "deemed to have waived all objections, irregulari- ties or illegalities concerning the matter upon which such rehearing is sought other than those set forth in the application for such rehearing." The application must be filed within twenty days after decision upon the hearing has been rendered and must be based on one or more of the following grounds: "(1) That the Commission acted without or in excess of its authority; (2) that the order or decision was procured by fraud; (3) that the order, rule, regulation is imreasonable." This motion for rehearing is a condition precedent to review by the courts. The filing of an application automatically works a ten days' suspension of the order in question, and this time may be extended by the commission if it sees fit. Within thirty days after the rehearing has been denied, or if granted within thirty days after the rendering of ^ decision upon rehearing, "any person affected thereby may apply to iil 586 EFFICIENCY AND ECONOMY COMMITTEE. LABOR AND MINING. 587 f «: the supreme court or to the district court of appeal of the appellate division in which such person resides for a writ of certiorari or review for the purpose of having the lawfulness of the order, decision, rule or regulation on rehearing examined into and determined." Review by the court is limited to the investigation of the power of the commission, fraud, the reasonableness of the order, rule or regula- tion in question, and, if findings of fact are made, whether such findings support the decision or award reviewed. The pendency of a writ of review does not of itself suspend the order of the commission, but the court has discretionary power "to suspend or stay the order, rule or regulation in whole or in part." The California legislature, in 1913, also passed an act creating an industrial welfare commission." This commission is composed of five persons, one of whom is a woman, appointed by the governor, for a term of four years. The members receive no salary but are allowed ten dollars a day and expenses when in attendance at commission ses- sions. The board is empowered to choose its own employes, who are under its direction and hold office at its pleasure. It is the duty of the Commission to investigate the wages paid, the hours of employment, and the health, safety and comfort of all women and minors in the various trades, occupations and industries, "whose compensation for labor is measured by time, piece or otherwise." To assist the Commission in such investigations all employers are directed to furnish information, to permit investigation of books and inspection of plants and to keep a register of all women and minors employed. Under the act a minor is defined as a person of either sex under the age of eighteen years. If, after the investigation of a particular industry, it is the opinion of the commission that the hours or conditions of lacbor are unsatisfac- tory or that the "wages paid to women and minors are insufficient to supply the cost of proper living," the Commission may call an equal number of the employers and of the employes in the occupation under discussion to pass upon the questions involved. This conference is known as the "wage board." The number, composition and procedure of the board is fixed by the commission, one member of which acts as chairman. The board, if so directed by the commission, shall report: (1) an estimate of the adequate minimum wage, (2) the maximum hours of labor, and (3) the conditions of labor in the industry under investigation, consistent with the, health, safety and comfort of the women and minors employed. The commission is empowered to use the record of the proceedings of the wage board as evidence in a hear- ing before it, and after such hearing may accept or reject the recom- mendations of the board. The Commission has the power to fix the time and place of any hearing. Notice of such hearing is made by publication in one news- paper m San Francisco, Los Angeles and Sacramento and by filing a notice with the recorder of each county in the state. After the hearing, the Commission has the power to fix the mini- mum wage, the maximum hours and the standard conditions necessary to "the health and welfare of the women and minors employed in any occupation, trade or industry in the state." Any such decision or order of the Commission becomes effective after sixty days. Notice of the decisions or orders of the Commission is given in the same manner as is notice of the hearing, with the added requirement that a copy be sent to the commissioner of labor. The orders are under the continu- ing control of the commission and may be altered or rescinded by it at any time Any party aggrieved by a decision or order of the Commission may begin an action in the superior court of the city and county of San Francisco, or in the superior courts in and for the counties of Los Angeles or Sacramento. A complaint setting forth the grounds on which court review is sought is served, together with the summons, upon the Commission. The Commission shal then return to court a record of all the testimony taken at the hearing, together with a certi- fied copy of its findings and determinations. Upon review the court shall affirm or set aside the order or decision of the Commission, but the "same shall be set aside only on the following grounds : ( 1 ) That the Commission acted without or in excess of its authority ; (2) that the determination of the Commission was procured by fraud." The Com- mission or any other party in interest in the suit may appeal from the decision of the superior court. The California industrial accident commission law is notable because of the power of internal organization and control which it places in the hands of the commission. In matters of appointment, com- pensation of employees, and duration of their service the commission has been given free rein. This flexibility of the law is best illustrated by the discretion allowed the commission to appropriate the funds put at the disposal of one of its departments to the use of another if it appears necessary. Another feature of the California plan that should not be overlooked is that it concentrates the administration of work- men's compensation and the regulation of the conditions of labor in a single board. This union of the compensation and the safety provisions, how- ever, marks the limit of consolidation accomplished by the California law. There is no complete centralization of labor control in the hands of the commission. In addition to the industrial welfare board, which in reality shares the field of the industrial accident commission, there is a board of arbitration and conciliation, a public employment bureau, and a bureau of labor statistics. The latter is under the direction of a. commissioner of labor whose duties overlap those of the commissions at some points. This officer is charged with overseeing private employ- ment bureaus, with supervision over the payment of wages of seasonal labor, and with certain powers of inspection. He is also entrusted with the enforcement of labor regulations made directly by the legislature. The want of a combined power of regulation and enforcement in a smgle body, together with the absence of a centralization of the various labor services, menaces the eflFectiveness of the whole California system. Another danger in the California laws lies in the wide power of mandatory order and regulation residing in the commissions, coupled ^ith a limited scope for court review. This is most apparent in the $^ 588 EFFICIENCY AND ECONOMY COMMITTEE. I^ABOR AND MINING. 589 fill case of the welfare commission. Here notice of hearing is given by newspaper publication, and court review goes to the method by which the determination is reached rather than to the subject matter of such determination. The Oregon Welfare Commission. The Oregon welfare commission law, which was adopted in 1913, follows closely the provisions of the California act creating a similar commission. The Oregon commission consists of three persons, appointed by the governor, for a term of three years. The governor is directed, in selecting the commission to choose one commissioner who shall represent the employing class and one who shall represent the employed ckss ; the third commissioner shall be a representative of the public and shall be /'fair and impartial between the employers and the employees." The commission shall elect its chairman and select its sec- retary each year. "All expenses and expenditures of the commission are to be audited and paid as other state expenses are audited and paid." The commission is charged with making rules and regulations for the control of the employment of women and minors in the state, and is authorized to ascertain and declare standard hours of labor, standard conditions of labor and standards of mininumi wages for "all women and minors in any occupation within the state." It is vested with pow- ers of investigation similar to those of the California welfare commis- sion. After investigation, if conditions in any industry are found to be unsatisfactory, the commission may call a "conference" similar to the California "wage board." The Oregon law provides, however, that the conference shall be composed of "not more than three representa- tives of the employers and of an equal number of the employees in said occupation, and of not more than three disinterested persons represent- ing the public, and of one or more commissioners." The commission appoints one of the members of the conference to serve as chairman. The conference may be directed to report upon the same questions as the California "wage board," and the recommendations may be approved or disapproved in whole or in part by the commission. The conference, in addition to the minimum wage for time work, may report on the minimum piece rate for work of that character. Following the adoption of the report of the conference the com- mission shall set a time and place for a hearing and give notice of such hearing "by publication in not less than two newspapers of general circulation published in Multnomah county." After the hearing the commission may issue its decision in rules, regulations or orders as in California. The commission is empowered to make different rules or orders for the same occupation in different sections of the state if such a difference is justified by conditions existing in various localities. The commission is directed, as far as possible, to mail a copy of its orders to "all employers in the occupation affected thereby." In the matter of appeal from the decisions of the commission Ore- gon has allowed a wider judicial review than exists under the Califor- nia law. "All qustions of fact arising under the foregoing provisions of this act shall, except as otherwise herein provided, be determined by said commission, and there shall be no appeal from the decision of said commission on any such question of fact : but there shall be a right of appeal from said commission to the circuit court of the state of Ore- gon for Multnomah County from any ruling or holding on a question of law included in or embodied in any decision or order of said commis- sion, and, on the same question of law, from the said circuit court to the supreme court of the state of Oregon. In all such appeals the attorney general shall appear for and represent said commission." Kansas Department of Labor and Industry. Previous to 1913 the enforcement of labor laws and the regulation of the conditions of labor in Kansas were entrusted to the State Soci- ety of Labor and to the State Association of Miners, each composed of local labor groups. The elected secretaries of these organizations served respectively as ex-ofificio commissioner of labor and as ex-officio state mine inspector. There was also a free employment bureau, the director of which was appointed by the governor. The functions exercised by these three departments were consol- idated in 1913 by the creation of a Department of Labor and Industry. A commissioner of labor and industry was placed at the head of the department with the combined functions of state factory inspector, state mine inspector and director of free employment. For this ofifice and for the principal subordinate positions in the department there are age, residence and experience qualifications. The commissioner of labor and industry is charged with the appointment of an assistant commissioner, who shall be experienced in mining affairs ; two deputy state factory inspectors, one of whom shall have had practical experience in building, the other a woman experi- enced in matters pertaining to female labor ; a free employment bureau clerk ; and such other assistants, agents and office help as he may con- sider necessary. The salaries of all appointees are fixed by statute, but all employees are under the direction of the commissioner and "hold their ofBces during his pleasure." The duties of the commissioner are: (1) to make statistical reports of labor and trade conditions, (2) enforce the laws regulating the employment of women and minors, (3) enforce all laws made for the promotion of health and safety of laborers. He is invested with the usual powers of interrogation, investigation, inspection and of examining witnesses. When the commissioner finds that the precau- tions for safeguarding employees in any employment are unsatisfactory he shall notify, in writing, the owner, proprietor, or agent of such workshop or factory to make, within thirty days, the alterations or addi- tions to him deemed necessary for the safety and protection of the employees." In his capacity as state mine inspector he may order changes neces- sary to the safety of the laborers to be made immediately, and in case of imrninent danger he may order the suspension of mining operations until his demands have been complied with. Failure to obey his instruc- tions is punishable by fine "levied by any court of competent jurisdic- tion." I. J 590 EFFICIENCY AND ECONOMY COMMITTEE. Interest in the Kansas plan centers in the concentration of adminis- trative authority in the hands of the commissioner. The statute, how- ever, fixes the definite Hmits of his powers and duties and beyond these he cannot go. He has no discretionary power to add offices other than those provided for in the act, nor to reorganize the department with- out the express authorization of the legislature. He has no power to make regulations, and must enforce the specific terms of the law as laid down in the statute. A REPORT ON PUBLIC ADMINISTRATION IN RELATION TO AGRICULTURE AND ALLIED INTERESTS BY JAMES W. GARNER PROFESSOR OF POLITICAL SCIENCE UNIVERSITY OF ILLINOIS 1 1 t 1 Mi: f :i ^^■■'-■•tftei. ^3 ;,[,; mil * 1 • i •'j CONTENTS. Page I. AGRICULTURAL BOARDS AND COMMISSIONS IN ILLINOIS 595-608 Introductory Note 595 • A State Agencies 596 Illinois State Board of Agriculture. 596 Illinois State Farmers' Institute 600 Board of Live Stock Commissioners 602 State Veterinarian 603 Board of Veterinarian Examiners 603 State Biological Laboratory 604 Humane Agents 605 Stallion Registration Board 605 State Inspector of Apiaries 606 Board of Inspectors of Commission Merchants 606 I B. Associations receiving State Aid 607 Illinois State Horticultural Society 607 Illinois Dairymen's Association 608 Milk Producers* Association 608 Illinois State Poultry Association 608 State Bee Keepers* Association ^ 608 n. AGRICULTURAL ADMINISTRATION IN OTHER STATES AND COUNTIES 609-635 A. State Administration of Agricultural Interests 609 Tabular Statement 609 Summary 623 B. Governmental Organization for Agriculture in Foreign Countries 625 Canada 625 Australia 627 France 628 Prussia ' 629 Austria 630 Hungary g^.,. 631 Ireland 634 An Ideal Department of Agriculture. 634 « ni. CONCLUSIONS AND RECOMMENDATIONS 636-641 General Summary 636 Recommendations 639 Outline of Proposed Organization 640 > - li ^ i^'ifi &e ' ^i A REPORT ON PUBLIC ADMINISTRATION IN RELATION TO AGRICULTURE AND ALLIED INTERESTS By Professor James W. Garner, University of Illinois. I. AGRICULTURAL BOARDS AND COMMISSIONS IN ILLINOIS. Introductory Note. For the conservation and promotion of agriculture and related interests, the State of Illinois maintains and supports an even more numerous and complex variety of organs than in other fields of public administration. Besides a number of State offices, boards and com- missions organized according to various methods, some of which are controlled by private associations, there are several private associations which receive some financial support from the State, and some of the most important services are furnished through the State University and State bureaus connected with the University. The latter group of services will be considered in connection with the University, as part of the educational agencies of the State. In this section of the survey will be noted the other State bureaus and private associations receiving State aid which have to do with agricultural, horticultural, live stock and similar interests. A brief chronological outline of the development of these agen- cies may serve to explain, in part, the present complexity and especially the important part played by private associations in this field. The first step towards the present arrangements appears to have been the incorporation in 1853 of the Illinois Agricultural Society which re- ceived an appropriation of $1,000, and under whose auspices the first State fair was held in Springfield in the same year. In 1856 the Illinois State Horticultural Society was organized. The first State officer dealing distinctly with agricultural interests was the State Entomologist, established in 1867 ; whose office is now established in Urbana, and whose work is largely educational in char- acter. In 1872 a department of agriculture was established, and placed in charge of a State board of agriculture, which took the place of agri- cultural society in control of the State fair. The influence of the earlier organization may be seen in the existing provisions for electing the members of this State Board of Agriculture by delegates from county agricultural societies. The increasing importance of the live stock interests found expres- sion in the organization of the Dairymen's Association in 1874, and in the creation of the so-called humane agents in 1877 (to inspect cattle at the stock yards), the State Veterinarian in 1881, the Live Stock Commission in 1885 and the Board of Veterinary Examiners in 1889. 596 EFFICIENCY AND ECONOMY COMMITTEE AGRICULTURAL AGENCIES. 597 |i m More recently there have been organized a Milk Producer's Insti- tute, a Beekeeper's Association (in 1891) and a State Poultry Asso- ciation (in 1896), all of which have received State aid. In 1895, the Illinois Farmers' Institute was established. In 1909, a Stallion Regis- tration Board was created, and a biological laboratory was established ; and in 1911 a State inspector of apiaries was provided. The following is a list of State offices, boards and commissions, and private associations receiving State aid, which have to do with agriculture and related interests, with the salaries and amounts appro- priated in 1913, for the two years ending 1915: SUMMARY OF SALARIES AND APPROPRIATIONS FOR AGRICULTURAL AGENCIES, 1913-15. • • Emergency and State Agencies— Total. Salaries. Expenses. Deficiency. State Board of Agriculture $159,000 $ 21,400 $ 52,600 $85,000 Illinois Farmers' Institute 52,800 ^or^r, a^ r^r^ Live Stock Commission 80,280 State Veterinarian 25,000 Biological Laboratory 91,800 Board of Veterinary Examiners 1,600 Humane Agents 9,600 Stallion Registration Board 22,460 Inspector of Apiaries 4,000 Total $446,540 Societies Receiving State Aid — State Horticultural Society 10,000 Illinois State Dairymen's Assn 5,000 Live Stock Breeders* Association.. 3,000 Illinois State Poultry Association. . 2,000 State Beekeepers* Association 2,000 Total State Associations $22,000 County Fairs and Agric. Societies. . 170,000 Total $192,000 9,800 43.000 70,280 10,000 18,000 7,000 12,800 72,000 7,000 1,000 600 9,600 12,560 9,900 4,000 • • • • • • $159,440 $195,100 10,000 $92,000 • • • • • • 5,000 3,000 • • • • • • 2.000 • * • • • • 2,000 $ 22,000 •«•••• 170,000 $192,000 • • • • • • Grand total $638,540 $159,440 $387,100 $92,000 In addition to the State appropriations, the State Board of Agri- culture has other revenues, mainly from the State Fair, amounting to more than $150,000 a year, which are used for State fair expenses. The total expenditures from this group of agencies are therefore, about $940,000 for two years. A. STATE AGENCIES. Illinois State Board of Agriculture. The State Board of Agriculture consists of a president, one vice- president from each congressional district, and of the last ex-president of the said board — in all twenty-seven members. They are elected on the fair grounds at Springfield at the time of the State fair, by delegates chosen by the several county agricultural societies where such soci- eties exist, the number of delegates from each county ranging from one to three according to the number of societies in the county. In counties where there are no such societies the delegates may be ap- pointed by the board of supervisors or the board of county com- missioners. The term of members of the Board of Agriculture is two years and vacancies may be filled by the board itself. The board is em- powered to elect a secretary who shall not be a member of the board and to fix his compensation and he shall serve during the term for which the members of the board appointing him are elected. The board is also empowered to appoint a treasurer, to fix his compensation and to prescribe his duties. He holds office for the term of the board by whom he is appointed, unless he is sooner removed. He is required by law to keep an itemized account of all moneys received and paid out by him and to make an annual report to the State Board, which report shall be embodied in the report of the board to the Governor. The State Board of Agriculture is required to keep an office at Springfield for the transaction of business. It is declared to be a body corporate with the usual powers of such a body and is in addition authorized to hold State fairs and fat stock shows at such times and places as the board may determine. It has control of all the affairs of the "department" of agriculture and of all State fairs and fat stock shows and may make such by-laws and regulations for the man- agement of its business and that of the said fairs and shows as it may see fit. All money appropriated by the State to the "department" of agriculture shall be paid to the Board of Agriculture and may be ex- pended by the board in its discretion for the advancement of the best interests of agriculture, horticulture, manufacturers and the domestic arts. All appropriations made by the board for the benefit of county fairs and agricultural societies shall be divided between such societies and faii;s as shall have given satisfactory evidence of having held an annual fair and made a report thereon to the State Board of* Agri- culture. The amount of the grant to each society or fair is determined upon the basis of the amount of premiums offered by it during the year, the total allowance for aiiy fair being limited to $2,500. A sworn statement must be made by the president and secretary of each fair before the fifteenth of November each year, of the actual amount of cash premiums paid by such fair in order that it may receive an appropriation from the State treasury and the statement must be accompanied by an itemized list of all premiums paid. All moneys appropriated for the benefit of any such fair or sociiety are paid to its treasurer. The State Board of Agriculture is required to hold an annual meeting in January of each year and to make a report of its acts to the Governor, which report shall contain a detailed statement of the attendance, receipts, premiums and expenses of all fairs or fat stock shows held during the year. In addition to the powers and duties of the board in connection vi'ith the holding of the State fair and the apportionment of funds among local societies and fairs it has some control over the sale of commercial fertilizers. By an Act of 1885 all persons oflFering for sale 'i 598 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 599 i : in the State any commercial fertilizer, the price of which exceeds five dollars per ton, are required to file in the office of the board a duplicate certificate stating the weight, name of the manufacturer, the place where manufactured and the results of a chemical analysis of every such package offered for sale, the original certificate being required to be affixed to the said package. At the same time a sealed glass jar filled with the fertilizer so offered for sale must be deposited with the Secretary of the Board. A license fee of $20 per year is required to be paid to the Treasurer of the Board by every manufacturer, im- porter or agent of every such commercial fertilizer company. All analyses of commercial fertilizers sold within the State shall be made under the direction of the State Board of Agriculture. The Secretary of the State Board of Agriculture is required to compile and publish certain statistical information in regard to the number of acres of land devoted to the raising of various farm crops and the amount produced per acre. He is also required by Act of 1872 to receive reports from the town commissioners of Canada thistles and transmit the same to the Governor; and by Act of 1909, he is required to keep a list of all stallions offered for public use, together with a description and pedigree of the same. The appropriations for the State Board of Agriculture in 1913 were as follows: Per Annum. One secretary ^ 3 500 One chief clerk 2 000 One receiying and shipping clerk 1,200 One stenographer 1*200 One statistical clerk * ' 1200 One filing clerk [[[[ i'qoo One janitor 600 Total salaries ' $10,700 i^or traveling expenses $ 2,000 For office expenses, postage, etc : 1^200 For collection and publication of statistics 600 Exhibits at State Fair 5^000 Maintenance and repairs, State fair grounds . . . . ! . 12,500 Total for ordinary expenses $ 21,300 Total, salaries and ordinary expenses 32,000 Total, salaries and ordinary expenses for two years $ 64 000 For notes for completion of buildings, etc 85 000 For covered walks 10 000 Total for State Fair «i59 OOO For County Fairs, $85,000 per annum ..'!!.*!.*!'..*.*!.".!.**.! ! 170.000 Grand Total .^ $329,000 In addition to the State appropriations the State Board of Agri- culture receives a large revenue from admissions, concessions, fees and other receipts from the State Fair; and has also some revenue from fertilizer licenses and other minor sources. These additional revenues, which ordinarily are much larger than the State appropriations, are not paid into the State treasury ; but are expended by the State Board of Agriculture at its discretion. The annual report of the board shows in detail the receipts from various sources and expenditures; and also presents a trial balance and a summary of receipts and expendi- tures for the operation of the State Fair. The statement below has been prepared from the annual reports for 1912 and 1913: FINANCIAL STATEMENT, STATE BOARD OF AGRICULTURE, 1912-1913 RECEIPTS. State Appro- priations, 1913. 1913. 891.65 $ 10,700.00 3,200.00 600.00 17,500.00 State Appropriations — 1912. Salaries $ 7,200.00 Office and traveling expenses 3,200.00 Crop statistics 600.00 State Fair (premiums and maintenance of grounds) 15,000.00 State Fair buildings 62,021.01 Cc^vering walks Outstanding notes 11,227.21 a 137,979.00 10,000.00 85,000.00 Totals $88,020.01 State Fair Receipts — $150,098.85 $127,000.00 1912. 1913. Admissions $ 88,415.75 $ 87,582.25 Permits and privileges 20,539.50 20,361.99 Other State Fair receipts 39,506.03 43,579.42 Totals $148,46128 Other Income — Live stock certificates $ 28.00 Fertilizer licenses 2,140.00 Bills payable 85,000.00 Miscellaneous , 365.91 $151,523.66 $ 22.00 2,340.00 11,000.00 123.22 Totals $ 87,533.91 $ 13,485.22 Total receipts $324,015.20 Balance January 1 3,590.78 $315,107.73 27,423.67 Grand Totals $327,605.98 $342,531.40 EXPENDITURES. State Fair premiums $ 62,836.60 $75,906.37 Other State fair expenses 85,439.68 86,427.78 Total State fair expenses : $148,276.28 $162,334.15 ^tate fair buildings 98,264.70 116,237.56 Other expenditures 53,641.33 42,967.13 Total expenditures $300,182.31 $321,538.84 iialance December 31 27,423.67 20,992.56 Grand Totals $327,605.98 $342,531.40 a From 1911 appropriations. M 600 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 601 m "t». V « ,1 Salaries and Personal Expenses. Office salaries $14,714.96 $12.10S.J3 Treasurer s payrolls 22,218.67 19,933.60 Total salaries and payrolls $36,933.63 $32,041.93 Members' expenses $ 2,688.20 $ 2,88362 ^^^,^^&^- 3,224.40 1,181.46 S°H^'\^^ 3,723.40 3,007.09 Members restaurant 770.66 893 00 Livery and automobile hire 938^55 665.75 Total Personal Expenses $11,345.21 $ 8,630.92 Illinois State Farmers' Institute. The Illinois State Farmers' Institute, declared by law to be a public corporation, was created to "assist and encourage useful edu- cation among the farmers and for developing the agricultural re- sources of the State." It is composed of three delegates from each county in the State, elected annually by the members of the farmers' institute of the county. Its affairs are managed by a board of direc- tors, consisting of the State Superintendent of Public Instruction, the Dean of the College of Agriculture in the State University, the Presi- dent of the State Horticultural Society and the President of the State Dairymen's Association and one member from each congressional dis- trict selected by the delegates therefrom and elected at the annual meeting of the Institute one-half each year for a two years' term, making a total of twenty-nine members. The board of directors is authorized to elect its own officers and the law fixes the salary of the secretary at $2,000 per year. The board of directors has control of the expenditures of all moneys appropriated by the State for the support of the work of the Institute, which moneys are required to be expended in such manner as in judgment of the board will best promote among farmers "interest in useful education" and develop the agricultural resources of the State. It is required to make an annual report to the Governor, 50,000 copies of which shall be printed and bound in cloth. The Institute is required to hold an annual meeting of not less than three days dur- ation for the purpose of developing greater interest in tfte cultivation of crops, the breeding of domestic animals, dairy husbandry, horti- culture, farm drainage, improved highways and general farm man- agement. This meeting is held in the month of February. An appro- priation of $75.00 is made for a county institute to be held in each county of the State every year. The staff and appropriations for the Farmers' Institute made in 1913 were as follows : Per Annum. For Two YearJ. Secretary of the Board $ 2,000 Two Stenographers at $1,000 .'.*.'.* 2^000 One Messenger and Janitor '900 Total Salaries $ 4,900 $ 9,800 Expenses of Board of Directors 5,000 Expenses forjudges, Instructors, Speakers, etc 6,000 Otiice Expenses 3,000 County Institutes, estimated 7,500 43,000 Total $26,400 $52,800 The report of the Secretary of State shows the following expendi- tures for printing, binding and stationery for the Farmers' Institute for the two years 1910-12, in addition to the payments from appropn- ations : For Printing $ 4,527.81 For Binding 14,399.50 Far Stationery 1,482.90 Total $20,410.21 The amount paid for binding is more than four times that of any other State office, and about one- fourth of the total amount paid for all State binding. Under the arrangements for electing the directors of the Farmers' Institute, three delegates from Cook County select nine directors from the congressional districts in that county. From the report of the convention of delegates at the annual meet- ing in 1913, the committee on credentials reported a total of 148 delegates entitled to seats in the convention. This was less than half of the total number of delegates authorized. It does not appear how many of these delegates were present. The annual report of the Farmers' Institute contains the papers and addresses at the annual meeting and at sectional meetings (in 1913, one at Paris and one at Cairo), with a number of miscellaneous papers and a variety of illustrations. The auditor's report is a numerical list of vouchers, with no attempt at classification, and not even totalled. A statistical summary of reports of county institutes for 1912-13, shows the following totals : Number of days 389 Number of sessions 960 Attendancie 197,787 State payments $6,709.81 County board appropriations $8,105.00 Total Cost $26,416.34 No institutes were reported from eight counties. The number of days of such meetings in each county ranged from two to fifteen; the number of sessions from five to thirty-six ; and the reported atten- dance from twenty to 20,000. The higher figures for attendance appear to be determined by multiplying the estimated number at one time by the number of sessions; and thus the totals are more than the number of persons present at the meeting. From the financial statements, nearly a fourth of the reported cost of the coutity institutes was paid from the State appropriations, and tlf^ c^ ^ *^*^^^ ^^°^ county appropriations. In thirty-three counties, the State appropriation was more than a half of the total cost reported ; and m fourteen counties the State grant was practically the total cost reported. Contributions are, however, said to be made which are not reported ; but there is no way of determining the amount of these. I# 602 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 603 Board of Live Stock Commissioners. The Board of Live Stock Commissioners consists of three per- sons, not more than two of whom shall belong to the same political party, appointed by the Governor for a term of three years. The mem- bers of the board receive $10 per day for each day necessarily em- ployed in the discharge of their duties, in addition to their traveling expenses and mcidental expenses. According to the auditor's report for 1910-12, the per diem of the three commissioners aggregated $19,310, and the expenses of the commissioners and secretary amounted to $7,156.27 for the two years. The law makes it the duty of the board to cause to be investigated any and all communicable diseases among domestic animals intended for human food, to employ proper means to prevent the spread of such diseases, to provide for the extirpation thereof and where any such diseases are found to be of a dangerously contagious character to order all animals infected with them, as well as the premises where such diseases prevail, to be quarantined, and, under certain conditions to order infected animals to be slaughtered and infected barns and stables to be destroyed. All claims against the State on account of animals ordered to be slaughtered must be made to the board under such rules and regulations as it may prescribe. The amount of the indemnity is determined by the board and payment is made upon endorsement by the Governor. According to the report of the Com- mission for 1912, the number of cattle inspected in the stock yards of Chicago, East St. Louis and Peoria was^ 27,776 of which 13,676 were held for slaughter, and of these 2,672 were condemned after a post mortem examination. During the same year 360,000 hogs were treated with cholera serum. In addition to the inspectional and quarantine powers of the board it is authorized to recommend to the Governor the institution by proclamation of the quarantine of municipalities and other political districts. It is also required to advise the Governor to proclaim a quarantine against other states or foreign countries when in its judg- ment such action is advisable. By Act of 1889 it is empowered to make rules and regulations, subject to the approval of the Governor, in regard to the transportation of Texas cattle into the State, especially as regards the cleansing and disinfection of railroad cars in which they are imported. The board is empowered to call upon sheriflFs and deputies, constables, police officers, mayors and town marshals for assistance in the enforcement of the law in regard to the spread and extirpation of communicable diseases among live stock. The board is required to cooperate with the officers of the United States for the suppression of contagious and infectious diseases among do- mestic animals. The Act of 1889 also imposes upon the board the duty of issuing licenses to qualified practitioners of veterinary medi- cine and surgery and dentistry and of appointing a board of veterinary examiners to conduct examinations of applicants seeking a license to practice such profession. In 1909 the State biological laboratory wis established, and placed under the direction of the board of Live Stock Commissioners. From time to time the board publishes bulletins on such subjects as diseases of sheep, hog cholera and other swine diseases, tuber- culosis in cattle, etc. In addition to its main office in Springfield, the Live Stock Com- mission has offices at the Union Stock Yards in Chicago, the National Stock Yards in East St. Louis and the Union Stock Yards in Peoria. The State Veterinarian is the chief executive officer of the Live Stock Commission in the performance of its inspectional and quaran- tine functions. He is appointed by the Governor and acts under the direction of the board of Live Stock Commissioners. His office is at the Union Stock Yards in Chicago. He receives a salary of $10 per day for each day actually employed, in addition to his necessary traveling and incidental expenses. There was in 1913 also eighty-two assistant veterinarians (appointed by the State Veterinarian with the consent of the board) stationed in various parts of the State. The law fixes their compensation at $8 per day for time actually emi- ployed plus their necessary expenses. The State Veterinarian and his assistants are charged with conducting investigations, under the direc- tion of the board, concerning the existence of communicable diseases among animals and w^ith advising the board in regard 'to such matters as quarantine, the slaughter of diseased animals, the destruction of infected barns and stables, etc. He is a member of the Stallion Regis- tration Board. , FoFthe biennial period from October U 1910, to September 30, 1912, the per diem and expenses of the State Veterinarian and assis- tants amounted to $24,431. Board of Veterinary Examiners. By Act of April 24, 1889, it was made unlawful for any person to practice veterinary medicine and surgery, including veterinary dentistry, without a license from the State Board of Live Stock Com- missioners. The same Act authorized the said board to appoint a board of veterinary examiners, consisting of three competent veterinary surgeons who shall hold office at the pleasure of the Board of Live Stock Commissioners. It is made the duty of the said board of vet- erinary examiners to meet at such times and places as may be ordered by the Board* of Live Stock Commissioners for the purpose of exam- ining diplomas and credentials and conducting examinations of appli- cants for license to practice veterinary medicine and surgery. It is required to certify to the Board of Live Stock Commissioners the names of the applicants entitled to receive a license under the terms of the above Act and it is made the duty of the said board to issue at its next meeting a license to all such persons so certified, subject to certain exceptions specified in the law. The license fee for graduates of recognized veterinary colleges and for other persons who have been in the practice of veterinary medicine and surgery in the State for three consecutive years prior to April 24, 1899, is fixed at five dollars; the fee for other persons is twenty dollars. Each member of the board of examiners is entitled to receive a fee of five dollars per day and the necessary traveling and incidental expenses incurred while 604 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 605 |»" * j actually engaged in the discharge of his duties under the direction of the State Board of Live Stock Commissioners. The legislative ap- propriations in 1913 for the board of examiners were $500 per annum for their per diem and $300 per annum for their traveling and incidental expenses. State Biological Laboratory. , By Act of June 30, 1909, provision was made for the establishment of a State biological laboratory for the production and manufacture of biological products to be distributed free to live stock producers in Illinois. The location of the laboratory and the direction and control of the institution was vested in the State Board of Live Stock Commissioners. It is located at Springfield and consists of a two story building with research and serum laboratories, and with pens capable of holding 1,500 hogs. The appropriations for the laboratory in 1913 amounted to $91,800, most of which was for buildings and the purchase of hogs for serum. The staff of the Board of Live Stock Commissioners and related bureaus and salaries and appropriations in 1913 were as follows: Salaries Expenses Totals. Per Live Stock Commissioners. Annum. Members @ $10 per diem, est Secretary $2,000 Assistant Secretary 1,500 Stenographer 1,200 Messenger 840 Chief Inspector, U. S. Yards 2,000 Seven State Agents, U. S. Yards Clerk 1,800 Chief Inspector, Nat. Stock Yards. . . 1,500 State Agent, Nat. Stock Yards 1,200 State Agent, Peoria. 1,200 Traveling and incidental expenses of Commissioners and Secretary 3,000 OflSce Expenses 2,000 Totals State Veterinarian and Assistants, per diem, est Expenses, estimated Animals, slaughtered, estimated Totals Biological Laboratory. Bacteriologist and Assistant Purchase of hogs for laboratory work. Purchase of hogs, emergency , Buildings and equipment Two Two Years. Years. $20,000 4,000 9 • 3,000 2,400 1,680 4,000 • 23,800 3,600 3,000 2,400 2,400 $ 6,000 4,000 $70,280 $10,000 $80,280 18,000 5.000 • 2,000 $18,000 $ 7,000 $25,000 12,800 60,000 7,000 12,000 Totals $12,800 Board of Veterinary Examiners. Per diem and expenses 1,000 $79,000 91,800 600 1,600 Grand Totals $102,080 $96,600 $198,680 Humane Agents. By Act of July 1, 1877, it was made the duty of the Governor to appoint an officer for the town of Lake (in Cook County) two for East St. Louis and one for the city of Peoria, for a term of two years, whose duty it is to cause the enforcement of the law for the prevention of cruelty to animals. It is further made their duty to see that all stock in the stock yards of their respective counties, or at any brewery, distillery, factory or other place where stock are confined, are properly fed and cared for. The salaries of these officers are paid out of the State treasury and shall not exceed $1,200 per annum for each person. No appropriations are made for office or other expenses. Stallion Registration Board. An Act of June 10, 1909, requires every person offering any stallion for public service to cause the name, description and pedigree of such stallion to be enrolled and verified in the office of the Secre- tary of the State Board of Agriculture. To carry out the provision of the Act, a Stallion Registration Board was created consisting of five members, to-wit: the Secretary of the State Board of Agriculture, who is ex officio the secretary of the Stallion Registration Board, the State Veterinarian, the president and the secretary of the Illinois Horse Breeders' Association and the president of the Illinois Farmers' Institute. It is made the duty of the board to verify and register pedigrees, to pass upon certificates of veterinary examination, to issue the license certificates required by the Act and to make and keep records of all stallions enrolled in the State. A fee of $2 is required to be paid to the board for the examination and enrollment of each pedigree and for the issuance of the certificate and a fee of $1 for each annual renewal. The salary of the members of the board is fixed at $5 per day for each day actually employed, together with their traveling expenses. The salary of the secretary is fixed by the board at $1,600 per annum; but the General Assembly in 1913 appropriated only $100 per year. From the date of the organization of the board until November 1, 1912, 9,677 licenses were granted to keepers of stallions and a con- siderable number of owners were convicted for failure to secure licenses as required by law. License fees amount to about $18,000 a year, which is turned into the State treasury quarterly. The staff of the Illinois Stallion Registration Board and the appropriations made in 1913 for its work and maintenance were as ^o^lows: Per Annum. Three Members of the Board (per diem) $ 500 One Secretary 100 One Chief Clerk 1,200 One Assistant Field Superintendent 1,500 One Stenographer 1,000 One Janitor 180 Clerk Hire 1,000 Veterinary Services 800 Total Salaries and Personal Services $ 6,280 .^^•mJ.^ m 606 EFFICIENCY AND ECONOMY COMMITTEE. Expenses of Board Members and Superintendents 1,800 Printing and Stationery 2,000 Miscellaneous '400 Total $10,480 For two years , . . .^20,900 Postage 1^500 Total for two years $22,460 State Inspector of Apiaries. By an Act of June 7, 1911, the Governor was authorized to appoint a State Inspector of Apiaries, to serve for a term of two years, to be paid four dollars per day while actually engaged in the performance of his duties. It is made his duty to inspect, or cause to be inspected by an assistant, any apiary which he may have reason to believe is infected by a foul brood or other contagious disease, and for this pur- pose he or his assistants are authorized to enter upon any farm or premises or building used for the purpose of propagating or nurturing bees. All bee hives in which foul brood or contagious diseases are found to exist are declared by the law to be a nuisance and it is made the duty of the inspector of apiaries to notify the owner of such bee hive and to direct him how to treat the same. If after such notice the owner refuses or neglects to abate the said nuisance the inspector of apiaries may cause it to be abated at the expense of the owner. The owner who may consider himself aggrieved may appeal from the order of the inspector to the County Court. The inspector is required to make an annual report to the Governor and to the Illinois Bee Keepers' Association stating the number of apiaries visited, the number treated and the number destroyed. The per diem and expenses of the Inspector of Apiaries to Sep- tember 30, 1912 amounted to $1,702.97. In 1913 an appropriation of $2,000 a year was made for salary of inspector and assistants. Board of Inspectors of Commission Merchants. An Act of 1899 provided for a board of inspectors to enforce regulations imposed on commission merchants and to issue licenses to such merchants. The board was to consist of one member from each of the following associations: The State Horticultural Society, the State Dairymen's Association, the State Retail Dealers' Asso- ciation, the Chicago Butter and Egg Board 'and the Chicago Branch of the National League of Commission Merchants. This board was organized and $3,075 had been paid in for licenses, when the provisions of the Act for a board of inspectors were declared invalid by the Supreme Court, on the ground that the appointment of the members by private corporations constituted a special franchise in violation of Section 22 of Article IV of the State Constitution.^ The license fees which had been collected were repaid by an appropriation by the General Assembly. 1. Lasher v. the People, 183 111., 226 (Dec. 1809). B. AGRICULTURAL AGENCIES ASSOCIATIONS RECEIVING STATE AID. 607 In addition to the boards and offices definitely established as organs of the State government and which exercise certain public powers, there are a number of voluntary associations or societies organ- ized for the advancement of agriculture and allied interests, which have been recognized and aided in various ways as public corporations by the State and are utilized for the promotion of public interests. They are not governmental agencies in a strict sense (with public authority) ; but they have been granted certain electoral and other functions ; they receive some appropriations from the State, to be expended for the pro- motion of their respective interests ; and they are required to make reports to the Governor or some other official. This group of associations include the following: 1 — The State Horticultural Society. 2 — The Illinois Dairymen's Association. 3 — The Illinois State Poultry Association. A — The Illinois State Bee Keepers' Association. 5 — The Live Stock Breeders' Association. 6 — The Illinois Horse Breeders' Association. 7 — County Fairs and Agricultural Societies. All of these associations are recognized by the statutes for certain purposes; and all of them but one received appropriations from the Legislature in 1913 for the promotion of the particular interest for which they were organized. With the exception of the State Horti- cultural Society each is incorporated under general laws and each has its own organization and its meetings and activities are not regulated by law. The Horticultural Society, however, occupies a different legal position. It was chartered by the State and its organization and activi- ties are especially regulated by law. , The Illinois State Horticultural Society. The Illinois State Horticultural Society was organized in 1856; and reorganized in 1874. It is declared by law to be a public corpora- tion, embracing three district horticultural societies known as the Horticultural Society of Northern Illinois, the Horticultural Society of Central Illinois and the Horticultural Society of Southern Illinois. Membership of these societies consists of such persons as are sufficient- ly interested in horticulture to pay the membership fee. The affairs of the society are vested by law in an executive board consisting of the president, and secretary of the society and the president and one vice-president of each of the three district horticultural societies. It has the custody and expenditure of all funds that may be appropriated by the legislature for the support of the society, the said funds to be expended in such manner as in the judgment of the board will best promote the interests of horticulture and aboriculture in the State. The board is required to meet at Springfield biennially on the first Monday in January and to make a report to the Governor of all funds received from the State and other sources, which report shall specify the objects for which its funds were expended. It is further required 608 EFFICIENCY AND ECONOMY COMMITTEE. It- L 4 ,1 1 i to publish annually a report of the transactions of the society togetl.er with such other papers as it may deem of value to horticulture and arboriculture. The volume of proceedings for 1911 made a book of 427 pages. The appropriation from the State treasury in 1913 for the use of the society was $5,000. Illinois Dairymen's Association. This society was organized in 1874 and incorporated in 1883. Its officers are not appointed or controlled in any way by the State* but it is governed by a board of directors, which elect a president and vice-president from their number. The association represents the dairy interests of the entire State; and its work is educational, encour- agmg the breeding of the best cattle and the use of improved methods. For some years, the General Assembly has made an appropriation for expenses incurred in printing and distributing the annual reports of the association. Two thousand five hundred dollars per annum was appropriated in 1913. Milk Producers' Institute. This organization was incorporated under the laws of Illinois, to hold an institute each year for the discussion of problems connected with the production and distribution of milk. While the membership ^/^u-^^ ^^^^^^^ ^^ ^^y locality, it was of most importance to the city of Chicago and the milk producing districts adjacent to that city. For a few years a small appropriation was made to this organization ; but this was not renewed in 1913. Illinois State Poultry Association. This association was incorporated in 1896, to gather and dissemi- nate information relating to the poultry interests and to foster the growth of the poultry industry of the State. Annual shows of poultry are held at different points in the State. In 1897, an Act of the General Assembly defined the powers and duties of the association, and granted an appropriation of $1,000 per annum. This appropriation has been renewed every two years.' State Bee Keepers' Association. The Illinois State Bee Keepers' Association was organized in 1891, to encourage the bee keeping industry in this State. Annual nieetings are held, and reports of these meetings are published and distributed. 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'M 3 o.^ "^ d S c c: xts X . OS tt'S o £dM x-»-> - M 53 X M-l 4J §:£« i2 £«" :2 5 o 3 4* (^ X T* X 09 *-d 5« 4> ■4.J 03 d^o d oir* d d ii o d»H |4 4> d u 4) O O o In 4> d o 00 n E £ o u 4) t4 QQ lA d bo <«5 d 4) 03 U ad 4>-*J O bo o o 2 I ■«-> CO ! d o bo d •M ,d X 03 d o « O •d »4 03 O n 4) •4-> 03 «2 O d w 03 OQ •s . ***^ " k! o o • 3 ** O t^ *C X X d 4< S 4) g<0 r cu o 3 X ^>.fa'-^i5 2 4) 4) S^E ■4^ -M .3 O « a) 00 d K d 00 b4 5gS d t-d^ o 03 d o be < 4) •4-> C3 ■tJ OQ -So ^ S o d 03 O 4>. EC X .SE 0! O Sx'gS M- 1* 3 == oiczj o a iSd be 03 o X « o XJ3 o d — t-> g« 4> . . ^ X X £ ttbc I 9 o o O o ,£3 ■iJ AGRICULTURAL AGENCIES 623 Summary. From the data in the foregoing statement, it will be seen that in twenty-two states there are organized agricultural departments, in which are united a considerable number of services. In this class are New York, Pennsylvania, Ohio, Maine, New Hampshire, North Dakota, Montana, Idaho, Washington and nearly all of the Southern states.^ In most of these states, the department is under the direction and control of a single salaried official, usually styled the Commissioner of Agriculture. In many of the Southern states, and in North Dakota, the commissioner is an elective state officer, in some cases provided for in the state constitution. In the other states this officer is appointed by the Governor. Some of these states with well organized departments of agriculture, have, in addition to the chief executive, a board of agriculture, usually small in number and appointed by the Governor. Such boards are provided in Pennsylvania, New Hamp- shire, Virginia, North Carolina, Kentucky, Alabama and Louisiana. In Ohio there is a comprehensive department of agriculture under the control of an agricultural commission of four members, three appointed by the Governor and one by the trustees of Ohio State University, at salaries of $5,000, with extensive powers. In Oklahoma, there is a state board of agriculture of eleven members, the president of which is an elective official. In the larger number of states, agricultural interests are looked after, as in Illinois, by a number of different authorities, organized in different ways and with different relations to the state government. Most of these states have a state board of agriculture, which is usually a large body ( from ten to more than forty members , whiph is neither selected by nor responsible to the Governor or other state officers. In a few states, (Delaware, West Virginia, South Dakota and Oregon), there are small boards of agriculture (with from three to seven members) appointed by the Governor, with limited powers. There are no State Boards of Agriculture in Wyoming, Utah, Nevada, New Mexico or Arizona. But in all of the states of this group there are other officials and boards exercising functions relating to agri- cultural affairs, such as live stock, dairy, fish and game and forestry boards or commissioners. The state boards of agriculture are usually Hmited to the management of the state fair, the collection of statistics, the publication of bulletins and crop reports, and sometimes super- vision of farmers* institutes, the inspection of commercial fertilizers and some similar matters. In general their functions are more of an educational character than governmental, since they are rarely charged with the enforcement of legislation relating to agriculture and other related industries. The chief advantages claimed for the board system are that it affords a means of securing the collaboration of a number of persons who are actively engaged in the pursuits of agriculture and whose 2. In most of these states the department title and functions include more than j°rj^.ultural interests. In Alabama it Is a department of agriculture and industries; Jr J^^^ssissippi, a department of agriculture and commerce ; and in Arkansas a depart- m 5ii**' n^ines, manufactures and agriculture. In Iowa there is a so-called "depart- t^u^ ,.0' agriculture under a state board of agriculture, organized as in Illinoift and with limited powtri. .««* «i| AGRICULTURAL AGENCIES 625 624 EFFICIENCY AND ECONOMY COMMITTEE. : i # § liki tk Hill: }t^ R * i combined experience and knowledge may therefore be presumed to be much greater than that of a single commissioner. The chief disadvan- tage, however, is that owing to the large size of most state boards of agriculture they are cumbersome and unwieldy and therefore not well adapted for efficient administration. Where there are twenty (20) or thirty (30) members residing in different parts of the state they can be assembled only at rare intervals and then at more or less incon- venience and expense. Finally, boards as administrative bodies lack responsibility, since it is obviously difficult to fix definitely and effec- tively responsibility for their acts upon any member. It should be said, however, that the difference between the single commissioner system and the board system is sometimes more appar- ent than real. In all the states which have a state board of agriculture, the president or the secretary — usually the secretary — is generally a paid official who maintains an office in the state capitol and devotes most of his time to the discharge of his official duties. In most states he performs various duties which in those states having departments of agriculture are performed by the commissioner. His office, there- fore, is often not very unlike a department and is in fact so designated by law in several states (of which Illinois is one) where there are state boards of agriculture. But in such cases the secretary of the state board of agriculture is subject to the control and supervision of the board, whereas a commissioner of agriculture is directly re- sponsible for the conduct of his office. It is not to be understood that there are no other authorities in these states which have departments of agriculture. In a majority of states the control of the live stock interests is under a separate board or commissioner, entirely independent of the commissioner of agriculture or the state board of agriculture, as the case may be. So with regard to the protection of game and fish, the control of the dairy industries, food inspection, the forestry service, etc. In most states the board of agriculture, or the department of agriculture, is there- fore but one of a group of independent and co-ordinate authorities among which is distributed the administration of a number of related services. In many States the number of such boards or commissions has been multiplied to such an extent as to cause much unnecessary con- fusion, overlapping and duplication. In Utah and Washington, for example, practically each service relating to agriculture and other kindred industries has been placed under a separate board or com- mission, and to a somewhat less degree this is the situation in Illinois and many other states. " It is the opinion of students of administrative organization that the board system has been much overdone in most of the states, and that considerations of economy, efficiency and responsibility require that the further multiplication of boards for administrative purposes should be checked. In recent years there have been signs of a reaction against this tendency. New York, Pennsylvania, Ohio, Washington, and to a less extent Florida and Georgia have gone farthest in the direttion of consolidating in a single department the y<^rious agricul- tural services, which are more or less related in character, with a view introducing simplicity, securing greater economy and efficiency and ivoidine unnecessary overlapping and duplication In 19U such con- solidated departments were established in Ohio, New Hampshire and Washington. ' . ..••*• The New York system represents the type of organization most in harmony with modern principles of administrative organization, and the one toward which the most progressive States are gradually tending. The Commissioner of Agriculture in that State has been vested with laree powers and in the department of which he i^ the head have been consolidated a large group of important services organized into ten bureaus, such as the supervision of dair>^ing and cheese making, the administration of the laws relating to the live stock industry includ- ing the control of contagious diseases among domestic animals the bee keeping industry, the enforcement of pure food laws and laws relating to the sale of certain articles like paris green, turpentine, lin- seed oil, etc., the laws for the protection of trees, shrubs and plants against disease and pests, the laws governing the inspection and sale of commercial fertilizers and food stuffs, the inspection and condem- nation of meat, and other services which in most states are under the administration of separate boards or offices. So too, in Pennsylvania, the department of agriculture is charged with the promotion of agriculture, horticulture, forestry, live stock and poultry interests, the analysis of fertilizers, the protection of forests, the enforcement of laws relating to diseases of animals, the prevention of fraud in the sale of foods, and supervision over the Live Stock Sanitary Board, the State Veterinarian, the Economic Zoologist and the Dairy and Food Commissioner. Even more comprehensive are the powers of the recently estab- Hshed Agricultural Commission of Ohio. These include the powers formerly exercised by the Secretary and State Board of Agriculture, the Board of Live Stock Commissioners, the Board of Control of the State experiment station, the State Dairy and Food Commissioner, the Fish and Game Commissioner, the State Board of Veterinary Examiners, and some powers of the State Board of Pharmacy. The commission has authority to establish bureaus, and also has power to conduct investigations, inspections and hearings and to make rules and regulations relating thereto. The consolidated department of agriculture under a single official, with subordinate bureaus and divisions, is the system of organization by which the government of the United States administers the acts of Congress for the promotion of agriculture. This also is the usual method of administration for agricultural as for other interests in Canada and the other countries in America and Europe. B. GOVERNMENTAL ORGANIZATION FOR AGRICULTURE IN FOREIGN Canada. countries. The prevailing system of organization in Canada, both for the Dominion Government and the Provincial Government, is that of a department at the head of which is the Minister of Agriculture. The ..^' %i',: S »i.r 626 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 627 (' t I '.I I) r< board system so common in the American states is almost unknown in Canada. Nearly all the interests affecting agriculture and the re- lated industries, besides certain others which have no relation to agri- culture are grouped together in one department and are subject to the control and supervision of a minister who is generally a menil)er of the cabinet and responsible to the legislature. He is charged with the administration of all the laws relating to the various interests that are placed in his department and he has a large power of issuing regulations in regard to such matters as quarantine, cold storage, trans- portation, inspection of the cutting of timber, etc. The Dominion department of agriculture has jurisdiction of many matters that in the American States are under the control of separate boards, commissions or offices. Such as the dairy industry, cold stor- age, inspection of fruits and seed, the live stock industry, including control of contagious diseases, chemical analysis of fertilizers and other commodities, farm experiments, inspection of trees, shrubs and plants, the poultry industry and even such matters as patents, copyrights, trade marks, designs, public health and quarantine and the census and sta- tistics. For purposes of administration the department is subdivided into branches and divisions. The following outline of the organization of the department will serve to give some idea of the scope of the activities which are embraced within the department: 1. The Dairy and Cold Storage Commissioners Branch — (a) The division of markets extension. (b) The cold storage division. (c) The fruit division. 2. The Seed Commissioners Branch. 3. The Live Stock Branch. 4. The Experimental Farms Branch — (a) The agricultural and live stock division. (b) The horticultural division. (c) The chemistry division. (d) The entomologist and botanical division. . (e) The cereal division. (f) The poultry division. (g) The division of branch farms. 5. The Health of Animals Branch. 6. The Archives Branch. 7. Patents and Inventions. 8. Copyrights, Trade Marks, Industrial Designs and Timber Works. 9. Census and Statistics. The organization of the provincial departments of agriculture is similar to that of the Dominion Government. In Nova Scotia the Secretary of Agriculture has control of the agricultural college, the entomologist service, drainage surveying, the poultry industry, the dairy industry, supervision of agricultural socie- ties, the registration of stallions and the registration of swine. The Ontario department has control of the college of agricultiire, the veterinary college, the enforcement of the laws for the protection of the beekeepers^ industry against the ravages of foul brood the eradica- ton of plant diseases and pests, inspection of milk and cheese the uperv si^on of all private associations receiving aid from the proynaal reasury, promotion of colonization and immigration control of con- Sous diseases among live stock and the inspection of factories. The department's sub-divided into branches and divisions. The organiza- Hon and activities of the departments of agriculture m the other prov- bces are substantially the same as those of the department sketched ^^""""in Saskatchewan the department of agriculture is divided into seven branches at the head of each of which is a chief who is under the direction of, and responsible to, the Minister of Agriculture The department embraces a wide variety of activities «^any ^^ 7^^^, ^^^ the United States are under the management of separate boards. 1 ney include, for example, such matters as the collection of statistics, the ^ recording of brands, the enforcement of the weeds and game laws, the inspection of factories, the arbitration of labor disputes, the mspection of live stock, the enforcement of the stray animals act, the registra- tion of stallions, the administration of the horse breeders act, the chemical and bacteriological laboratory, etc. The Alberta department of agriculture has control of the adniinis- tration of the dairy laws, the noxious weeds act, the game and fish protection, the poultry industry, the recording of birds, the public health service, the office of sanitary engineer and the bacteriological laboratory. Australia. The same general method of organization of state agriculture which prevails in Canada is found in Australia. The commonwealth as well as each of the individual States has a department of agriculture at the head of which is a minister who occupies a seat in the cabinet and is responsible to the pariiament. There, as in Canada, the minister has large powers in the administration of the laws relating to agriculture and in issuing regulations of various kinds. Instead of providing a separate board for the management of each service an extensive group of related services are brought together in one department and placed under the control and supervision of a single responsible official. The Commonwealth department of agriculture has jurisdiction over the following matters ; Agriculture, forestry, the live stock indus- try, including the control of contagious diseases among domestic ani- mals, water conservation and irrigation, farm demonstration and experimentation, viticulture and nuresries, the agricultural college and farm schools, dairying, plant diseases and pests, adulteration of food and wine, analysis of commercial fetrilizers, the exportation of fruit, inspection of sheep and wool, etc. Among the several States which compose the Commonwealth the same general method of organi- zation and administration is found. In Victoria the department of agriculture has control of such matters as the agricultural colleges, and schools, the veterinary school, the experimental farms, orchards and vineyards, milk and dairy^ super- vision, the exportation of butter, the diseases of live stock, soil investi- • > 628 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 629 4 i I ? ■ I I ; gation, chemical analysis of commercial fertilizers, pure food and wine inspection, the inspection of sheep and swine, the administration of the poisons act, the adulteration of leather act, the eradication of plant diseases and pests, fish and game protection, registration of stallions, inspection of fruit and tobacco, quarantine and supervision of agri- cultural societies. In New South Wales, Queensland, South Australia and Western Australia the departments of agriculture are similarly organized and their activities embrace the same wide variety of service. On the whole it is believed that the methods of state organization for agriculture in Canada and Australia afford instructive lessons for the American states and that their methods might be followed to some extent by us. Instead of a multiplicity of boards with their inevitable overlapping, duplication and want of responsibility the Canadians and Australians have adopted the simpler method grouping together in one department under a single responsible authority all the various serv- ices which relate directly or indirectly to the conservation and pro- motion of agriculture in the broadest sense of the term. By this means services of a related character are administered by a common authority so that harmony and co-ordination are secured, conflict and duplication avoided and a more effective responsibility and consequently greater economy and efficiency are obtained. * On the continent of Europe the prevailing form of organization is that of a department at the head of which is a Minister of Agri- culture who is responsible to the parliament. As in Canada and Aus- tralia he has large powers and the department embraces a large group of services which in the American states is under the management of separate and independent boards. France. In France the ministry of agriculture is sub-divided into "direc- tions" or divisions at the head of which is a director-general ; and the "directions" are sub-divided into bureaus. Among the services which fall within the ministry of agriculture are the following: Control of the agricultural colleges and schools and agricultural instruction gen- erally, the control of waters and forests, protection of fish and game, fish culture, hydraulic service, irrigation canals, registration of stal- lions, encouragement of horse breeding, control of contagious diseases among live stock, agricultural credit and co-operation and mutual insurance and relief in cases of drought and other calamities. The ministry also has control of the national agricultural exhibitions and the distribution of subventions to the local societies. It also bestows prizes, medals and decorations upon successful agriculturists, horse breeders, gardeners, etc. One of the characteristic features of French administration is the use made of councils and commissions composed of technical experts, for purposes of advice and consultation. There is a large number of these for the ministry of agriculture, the most important of which is the superior council of agriculture. In addition there are councils for agricultural instruction, for waters and forests, for fisheries, for the registration of stallions, etc., so that each adminis- trative chief has associated with him a council for advice and consul- t;ition In some cases the minister, the director-general or other admm- ktrati've officer is required by law- to consult one of the councils before tiking action, and in all cases he is at liberty to seek their advice although generally speaking the ultimate responsibility is up'on him and he is not therefore bound to act in accordance with the advice which the council may give. The chief merit of this arrangement is that it nuts at the disposition of the minister the benefit of the best technical and expert opinion without at the same time dividing the responsibility. Prussia. State care and control of the agricultural and allied interests in Prussia is centered in the ministry of agriculture, domains and forests. The ministry is sub-divided into three divisions : a division which has charge, of agricultural and breeding matters including veterinary prac- tice credit and co-operation, instruction, irrigation, colonization, fish- eries cultivation of marsh lands, agricultural police and game protec- tion;' a division for the administration of the public domain; and a division for the administration of State forests. Connected with the ministry are various commissions, institutions and services, such as the royal agricultural commission (a body com- posed partly of members elected by the Chambers of Agriculture and partly of members appointed by the Minister of Agriculture, and which acts as a permanent advisory council to him in all matters relating to agriculture and forestry), the breeding and veterinary stations, the higher schools of agriculture, the horticultural institutes, the agricul- tural credit institutes, the Central Moor Commission, the Chambers of Agriculture, land boards and others. In every province is a chamber of agriculture, a quasi public corporation created by law, its chief function being the promotion of the agricultural and forestry interests within the province. They study measures for improving existing conditions and assist the adminis- trative authorities by communications and reports ; they also lend their assistance in matters of agricultural credit and co-operation and sup- ply the banks and markets with price quotations. They have the power to levy taxes and they have their own budget and treasury. Members of the Chambers are elected for a term of six years, one half the members retiring every three years. The sittings of the Chambers are public, and a record of their proceedings must be com- municated to the Minister of Agriculture. All their acts are subject to the surveillance of the Minister. For the determination of various disputes arising in connection with the ownership or use of land there are provincial land boards from whose decisions appeal may be taken to the Superior Court of Agriculture, which sits at Berlin, under the joint direction of the Ministers of Agriculture and Justice. This court is composed partly of trained judges and partly of agricultural experts. For the study of methods of improving marsh lands and' the reclamation of sandy soils and for advising the Minister in matters relating to such lands there is a Central Moor Commission which was created in 1875. Likewise, there is a technical committee for vet- ^nSi 630 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 631 erinary matters composed mainly of teachers and practitioners of vet- erinary science created in 1875, to advise the Minister in matters relating to veterinary practice and diseases of animals. Austria. The Austrian Minister of Agriculture has a double field of activity. On the one hand he is the chief administrative authority for all matters pertaining to agriculture, and on the other hand, he is the chief administrative authority for the forests, domains and mines of the state. The Ministry in its present form was established in 1868 and since that date has had numerous functions added to its sphere of activity. These functions may be classified as follows : 1. The administration of legislative acts regarding the policing of forests, hunting and fishing ; acts relative to local regulation, breed- ing matters, mining, reclamation of soil and its improvement, coloniza- tion, hydraulics (these last tvi^o in connection v^ith the Ministry of Interior), questions of assessment and taxation, (in connection with Ministry of Finance) and finally matters of expropriation. 2. The Minister is the court of final resort in matters relating to water regulation and forestry law except when they concern the Min- ister of Interior. It is also an administrative court for violation of game and hunting laws, also in all maters of expropriation and re- distribution. The latter matter is handled by a special ministerial commission for agrarian operations. 3. The application of endowment funds. Agricultural statistics. 4. Breeding of horses. The administration of state breeding sta- tions. Bounties for breeders and state prizes for horse racing. 5. Administration of State instruction in agriculture, mining and forestry. In certain matters, however, the Minister of Education must be consulted. 6. The administration of agricultural credit and co-operative associations, as well as the workmen's insurance and ordinary agri- cultural associations. This is done in concert with the Minister of Interior and the Minister of Finance when new establishments or asso- ciations are to be formed. 7. Administration of mining laws and regulations. The Min- istry is an administrative court of appeals from the decisions of local authorities. Personnel of mine authorities, and finally mine associations are also under its control. 8. The administration of State forests and domains as well as religious and educational funds. The Ministry also administers all realty belonging to the state and the increment arising therefrom. It regulates all questions such as easements and all legal disputes regard- ing the land. It also makes decisions in regard to buying and selling. It has control over all schools of forestry. It is important to note that the administration of mines includes not only a general control over all technical and economic matters, but also over educational and religious matters in the mining regions. The Ministry is divided into two sections, one in charge of agri- cultural interests, the other administering the domains and forests and mines. The Chief Bureau has the general management of the department, the personnel of the Ministry and services and matters of budget. The accounts of the Ministry are taken care of by four different divis- ions of accounts. A Central Commission for Horse Breeding advises the Ministry in such matters which also acts as a council of administration for the state studs. It is composed of five or seven members appointed by the Minister for definite terms and meets under his chairmanship. The Ministerial Commission for Agrarian Operations is composed of the Minister or his assistant, the referees of the Ministry, three or four members of the rank of judge appointed by the Minister of Jus- tice, and a representative of the Minister of Interior. The chairman may summon agricultural experts, farmers or other experts to sit at the meetings. The commission is in correspondence with all authorities and keeps in touch with local conditions through the agricultural coun- cils in the crown lands. There are also local authorities of the first instance and inter- mediate authorities. In some of the crown lands there are Agricultural Councils, who act as intermediaries between the Ministry and the local agricultural associations. These may be called upon by the Ministry to give reports and advice on matters pertaining to agriculture. The Forestry Inspectors are the administrative authorities of forestry law. Hungary. In general the functions of the Hungarian Ministry of agriculture cover all matters of agriculture and forestry. These functions include control over breeding matters, the veterinary service, milk inspection, state domains, river regulations, general water policing, farm labor, forestry, agriculture, horticulture, wine growing and wineries, hunting and fisheries, statistics, education, state spas and finally control of property. The services of the Department are as follows: Breeding service and inspection. Veterinary service. Instruction (local schools and academies. Itinerant instructors.) Agricultural Senate. Experiment Stations. Institute of wool testing. Forestry (schools, authorities and experiment station.) Royal River Engineers. District Agricultural Engineers. Royal Hydraulic Survey. Societies for water supply, regulation and drainage. Senate for Hydraulics. Royal Phylloxera Commission. Expert Wine Testing Commission. Senate of Appeal in matters of falsification of agricultural prod- ucts. Agricultural Referees in Administrative Courts. • . Commission of Loans for Replanting Vineyards. Reserve fund for laborers and insurance. I¥ \ i &■ ■ # 632 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 633 mn Education in horticulture and viniculture. Foreign Commissioners. Royal Institutes of Geology, Entomology, Ornithology, Meteor- ology and Terrestrial Magnetism, and Royal Agricultural Museum. Administration of State Domains and Spas. 1. Agricultural Policing. The central organ of rural regulation are the Agricultural Inspectors. They are named by the Minister and have cognizance over all administrative matters and are expected to report to the Minister. The Chief Inspector is a member of the admin- istrative council and is the expert referee on agricultural questions. Besides the inspectors, the Minister appoints honorary Reporters in each district who are expected to report to him on the state of agricul- ture in their respective districts. 2. Agricultural Credit is a matter of private enterprise m Hun- gary, and although largely encouraged by the state, there is no direct control as in Prussia. The Hungarian Central Co-operative Credit Society is the central organ and is composed of a union of three independent organizations. 3. Viniculture. The devastation of the Phylloxera has given rise to special state activity in regard to the cultivation of grapes and wine making. The state has provided for certain Bergemeinde, which are given the right to make regulations on all matters relating to viniculture. These Gemeinden are composed of a number of wine growers own- ing a certain amount of land. Besides its regulatory functions, the Gemeinde is supposed to watch over the interests of viniculture and to take measures against destructive insects, etc., and to act generally as a sort of wine police. The Gemeinden are empowered to levy taxes for the purposes of their functional activity. From decisions of these bodies there is an appeal to the administrative authorities of the first instance 4. Soil Improvement. The District Engineers are the officers of the Department of Agriculture in matters relating to the improvement of soils. These engineers are expected to furnish to the land owners plans for improving their lands to assist in the execution of such plans and to make reports. In addition to the corps of engineers, the State has control over the instituti6ns which furnish loans for the purposes of soil improve- ment. The State also has established model farms in many diflferent localities to aid the farmers in improving their farms. 5. Labor. A unique feature of the Hungarian agricultural de- partment is the fact that the control of farm labor is in the hands of the Minister. Stringent regulations are made in order to enforce con- tractual obligations. The employer or employee who attempts to vio- late his contract is liable to fine and sometimes imprisonment. A very determined attempt has been made to have all contracts for labor in the form of a written instrument. ^ The State has taken great interest in the spiritual and intellectual welfare of the laborers. It provides them with libraries, lectures, cheap literature, pamhplets popularly written on all manner of sub- jects and newspapers in all the dialects of the country. Laborers who have proven their worth are given on recommendation of the local agricultural association, a diploma or an additional premium by the £try. After forty years of service, laborers are awarded a medal. In the Ministry proper there is a division of employment This was established in 1899. As local agent, in every, mumcipality and commune there is a local employment office. Insurance for agricultural laborers is also an activity of the De- oartment of Agriculture. The fund was first established in 190U. Any person may be insured who is a farm laborer or domestic between ^e ages 14-35. There are two classes of insurance for which varying fees are paid. ' r j ir The State also gives pecuniary aid in the building of dwelling houses by laborers. The arbitral tribunal in all matters involving farm labor is the Landrat for Agricultural Labor. 6 Breeding Service. Here again the service is divided into a central and a local one. The municipalities are empowered to establish certain breeding districts to regulate the number of stallions, bullocks, etc., in each district. This is done only with the consent of the Minister. The local organ of administration for each district is the Special Dis- trict Commission. The Royal Breeding stations are directly under the authority of the Minister. He exercises his function in part through the Central Horse Breeding Commission. This body is made up of bureau officials members of agricultural associations, six private breeders appointed by the Minister, members of the Hungarian Jockey Club, the directors, veterinarians and accountants of the local breeding stations, and finally the heads of the State Breeding Stations. Besides the large amount of autonomy which the State has given the municipalities it has further encouraged the breeding of both horses and cattle by free service of all bullocks and stallions and by making money advances to purchasers. It also established premiums and in many cases has commuted taxes. 7. Veterinary Service. The state took general control of the vet- erinary service in 1900. Only those veterinaries are permitted to prac- tice who have received a diploma from the Budapest Academy. The Minister appoints a veterinary practitioner for each municipality or commune. The veterinary inspectors are the general overseers of all matters connected with veterinary service and epizootics. The General Veterinary Council is an organ of both Minister of Agriculture and the Minister of Interior. 8. Forestry. At the head of the forestry system is the Minister of Agriculture. The local authority is the Administrative Council of each municipality, more particularly the sub-committee for matters of forestry. The intermediate authority is the Royal Forestry Inspection Service, which has general oversight over all matters connected with the service and is also technical member of the separate administrative councils. The country is divided into twenty forestry districts. The actual work of forestry is in the hands of the foresters a graded service, who rank as public officers. The officers of this service receive their education in tlie Royal Academy of Forestry. till 634 EFFICIENCY AND ECONOMY COMMITTEE. i!l^ Ireland. State aid to agriculture in Ireland has been liberal, and a very efficient organization of the various agricultural services has been devel- oped. As a result of an elaborate report by a recess committee of parliament, under the Chairmanship of Sir Horace Plunkett in 1895-96, an act was passed in 1899 establishing a department of agriculture, within which was brought together the various services that had form- erly been under the control of separate and independent authorities. At the head of the department is the chief secretary for Ireland who bears the title of president, and there is a vice-president appointed by one of the principal secretaries to the Crown in immediate charge of the department. The services embraced within the department re- late to epizootics, the destruction of injurious insects, feed stuffs, fertilizers, the collection of statistics, the publication of reports, the administration of the grants for science and art in Ireland and for technical instruction, the fishery interests and various other matters. The law permits the Lord Lieutenant, with the consent of the treasury to transfer to the department other duties which may relate to agri- cultural matters. There are three important boards connected with the department, namely, the council of agriculture, the agricultural board and the board of technical education. The council of agriculture is an advisory body to the department of agriculture and meets at least once a year to con- sider matters of interest relating to the department; the agricultural board advises the department upon all questions especially submitted to its consideration ; and the board of technical instruction advises the de- partment on questions relating to technical instruction. The members of all three boards hold office for a term of three years and are eligible to re-appointment. The department is required to make an annual report to the Lord Lieutenant and a report to the treasury as often as the latter may direct, the former being transmitted to Parliament. An Ideal Department of Agriculture. M. Tisserand, a distinguished member of the French Council of State, director of agriculture in France and one of the leading author- ities in Europe on agriculture, some years ago prepared a plan for a model department of agriculture, at the request of the Rt. Hon. Horace Plunkett, then Chairman of a Committee of the English Parliament which was engaged in considerng a proposal for the creation of a department of agriculture for Ireland. After dwelling upon the neces- sity for organized state aid in the interest of agriculture and the allied industries, M. Tisserand proceeded to lay down the fundamental princi- pals which should underly the organization of a department of agricul- ture. First of all, he said the department should not antagonize private or collective initiative, but should rather awaken and develop it wher- ever possible. It ought to assist the weak, stimulate the indiflferent, and encourage those who are beset by difficulties ; but it should avoid all measures which would tend to destroy the spirit of self reliance ana li V AGRICULTURAL AGENCIES 635 'm Jnaeoendent enterprise among the agricultural classes In the second frfit should encourage by special inducements such as pnzes sub- E or grants, the organization of farmers into societies, consultative c ?ambers^co-operative\ssociations, institutions for mutual assistance and the like; and should assist them in every possible way. Thirdly ft should be an educational clearing house for the collection and dis emination of information concerning new and improved me Aods of ^Sture and what crops are adopted to particular soils, how pro- duction may be increased, how crops may be protected against parasites. injurious insects, etc. Again the department of agriculture should in addition to the maintenance of state schools of agriculture encourage the establish- ment of private agricultural schools ; it should maintam and conduct model demonstration farms in as many communities as possible; and it should endeavor to attract into the agricultural service the most emi- nent scientists in chemistry, physics, physiology entomology, etc., so that the industry may profit from their studies and investigations. Turning to the organization of the department of agriculture, M. Tisserand suggested that it should embrace the following services : L Agriculture. 2. Commerce and Industry. 3. Rural Highways, lines of communication, agricultural tram- ways, light railways, mines and quarries. 4. Forests, waterways and public lands. 5. General Accounts. The first of the above mentioned services should be sub-divided into bureaus of agricultural education, aids to agriculture and legis- lation, agricultural hydraulics (irrigation, drainage, reclamation, land improvement loans, pisciculture and agriculture), veterinary police ad- ministration and statistics. Likewise the division of commerce and industry should be sub-divided into bureaus of commerce, industry, and industrial commercial education and the other services should be sim- ilarly sub-divided according to the nature of their activities. While the tenure of the head of the department will ordinarily depend upon the vicissitudes of politics the chiefs of the divisions and bureaus ought to be professional experts and the tenure of their offices permanent. In order to insure responsibility and co-ordination of services, the head of the department should be vested with a certain control over all subordinates. It is most important says M. Tisserand that the head of the department, minister, commissioner, whatever his title may be, should have beside him superior councils or consultative bodies— ver- itable "parliaments" of agriculture, commerce and industry— upon whom he may call for advice in regard to important questions affecting the department. There ought, moreover, to exist, side by side with these greater consultative bodies, advisory committees for each branch of agriculture and industry, composed of the most distinguished scien- tists and specialists and whom the head of the department may consult from time to time upon the various questions of a technical character which arise in his department. AGRICULTURAL AGENCIES 637 '£ III. CONCLUSIONS AND RECOMMENDATIONS. General Summary. In studying the organization in Illinois for the conservation and promotion of the agricultural, live stock and other related indus- tries, one cannot fail to be struck by the fact that the number of boards, commissions and offices created for this purpose is unnecessarily large. For nearly every interest, however, unimportant and, however, closely related it may be in its nature to some other interest, a separate board has been created, each having its own staff of officials and employees, its own separate offices and its own administrative machinery. Each is independent of the others ; there is an almost entire absence of any attempt to correlate groups of services that in their nature are closely related; and there is no authority to which any one is in any real or effective sense responsible. The system lacks unity; it is complex and top heavy with cumbersome and unwieldy boards, which are ill fitted for the exercise of administrative functions, and it is wasteful in its results. The State Board of Agriculture is so large that it has more of the character of an assembly than a board, — twenty-seven members divided into seventeen committees. Its members are chosen by the dele- gates of unofficial bodies, which may or may not have any real exis- tence; it holds two or three meetings a year, which are more or less irregularly attended; and it has only one important function, namely, the making of arrangements for the annual state fair. The annual expense of assembling this body is more than enough to pay the salary of a permanent Commissioner all of whose time could be devoted to the duties of his office. It maintains an office staff whose annual salaries amount to $12,000, to which should be added $8,000 for the traveling and other expenses of the members of the board and $1,200 for postage and office expenses, making a total of $21,200 for the maintenance of the board and its staff. The^ only important duty of the board is the management of the State fair, which involves the erection of buildings, the allotment of space to exhibitors and the offering of premiums for exhibits. One other duty is imposed upon the board, namely, the apportionment among local fairs of sums appropriated for their aid by the State Legislature ; but as the law prescribes that the distribution of these grants shall be^ made upon the basis of the amount of premiums offered by each fair, the task of apportionment is a simple clerical matter that requires neither deliberation nor discretion. The other duties nominally under the control of the board are in fact imposed by law upon the secretary of the board, and the board as such has little or nothing to do with them. These are : The issuing of licenses for the sale of commercial fertilizers and the collection of fees therefor (it is to be noted that the secretary is not required to make an analysis himself of fertilizers but merely to receive certificates of analysis made elsewhere), the publication of crop statistics, receiving reports from town commissioners of Canada thistles, and keeping lists of stallions offered for public hire — all of which are duties mainly of a clerical character and of no great consequence. Aside from the holding of the State fair, therefore, the duties of the State Board of Agriculture are few and of a comparatively minor importance. This is evident from a reading of its annual reports. It Is only in a very limited sense a board of agriculture ; it is rather a State fair commission, and if its name were changed to that it would more accurately indicate its real functions. The holding of the farmers institutes is likewise under the super- vision of a large.and unwieldly board of twenty-nine members, for the payment of whose expenses the General Assembly in 1913 appropriated $5^000 per annum. Like the board of agriculture, it too has a staff of employees for the payment of whose salaries and for office expenses the General Assembly of 1913 appropriated $7,900 per annum. Other expenses for state and county institutes and for printing and binding leports amount to $28,000 a year, or a total of $36,000 a year. The principal duties of the board are to arrange for an annual meeting of the institute, to publish the papers and addresses delivered before it, to arrange for the holding of county institutes and to select speakers therefor. On the face of it, there seems to be no reason why a superintendent of institutes, or some official with a different title, could not perform these duties without the necessity of employing a board of twenty-nine members and other cumbersome machinery. To insure a wise expenditure of the funds appropriated by the Legislature for the expenses of county institutes and to guard against the possible abuses of entrusting the expenditures of these funds to a single official (they aggregated only $13,500 for the year 1913), the law might pre- scribe more definitely the purposes for which such moneys are to be expended, instead of leaving it entirely to the judgment of the super- intendent of institutes, or it might fix the basis of apportionment among the county institutes, as is now done in the case of appropriations for county fairs, or it might require the apportionment to be made with the co-operation of a small advisory board representing those interested in the institute work. In either case the danger of arbitrary action on the part of the officer bavins: control of the expenditure of funds appropriated for the county institutes would be removed. It may be remarked in this connection that it has not been found necessary to provide any such cumbersome machinery for the administration of the ejlucational affairs of the state, although in many respects they are similar to those relating to agriculture and allied interests. 638 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 639 For the control and eradication of contagious diseases among live stock, including the making of quarantine regulations, the inspection and condemnation of diseased animals, the veterinary service and tlie publication of bulletins relating to diseases of live stock, a third board has been created, the per diem and expenses of its members amounting to $13,000 per annum. It has a staff of employees for the payment of whose salaries the last Legislature appropriated $25,140 per annum, which with the appropriations for the expenses of commissioners and for office expenses made a total of $40,000 per annum. Many of the duties imposed upon the board are discharged by the state veterinarian and his assistants. The others could be performed by a single com- missioner as well as by three, though it might be wise to provide for an approval of the secretary of agriculture in such matters as the framing of regulations for establishing quarantine and governing the transportation of live stock, the slaughtering of diseased animals and the destruction of infected barns and stables. With such safeguards the live stock board could be abolished, and in its place the office of live stock commissioner created and placed in the department of agri- culture, as is the case in a number of other American states, in Aus- tralia, Canada and in most of the countries of Europe.* A fifth board is maintained for the registration of stallions for public hire, the members of which are paid $5.00 per day for each day actually employed, together with their necessary traveling expenses. Like the other boards described above, it maintains a regular staff of employees, the number of which seems out of all proportion to the amount and importance of the duties which it performs. The appro- priations made by the Legislature in 1913 for the payment of the sal- aries and other expenses of the board and its staff aggregated $22,460, a sum which is far in excess of the cost of registering stallions in some of the other states where there is no such board, and in Canada, Australia and the countries of Europe where the duties are centralized in the department of argriculture. The duties of the board are mainly clerical, consisting as they do of verifying pedigrees and enrolling the names of stallions and their owners. It seems unnecessary to employ a board to perform such duties. In a number of other states such duties are performed by the commissioner of agriculture or some other official, like the state vet- erinarian or the secretary of the board of agriculture. It is therefore, recommended that the stallion registration board be abolished and its duties imposed upon the secretary of agriculture to be actually per- formed by the live stock commissioner or a registrar of stallion pedi- grees. It is something of a relief to find that a board has not been reo^arded as necessary for the inspection of bee hives, but that a single official has been found sufficient to perform those duties. The work of inspecting bee hives should, however, be consolidated with the work of inspecting nurseries, trees and shrubs. The two classes of duties are similar; and there is no reason why the same persons who are charged with nursery inspection cannot at the same time conduct the inspection of apiaries. It is recommended therefore, that the mspec- tional work of the state entomologist's office be consolidated with the work of apiary inspection and entrusted to an inspector of apiaries and nurseries, whose office shall be in the department of agriculture. Summarising, we find that the State now maintains five boards for the promotion and protection of the interests of agriculture and animal husbandry, each with an independent organization, subject to no com- mon superior and each with a more or less elaborate and expensive clerical staff. The aggregate cost of maintaining these five boards with their staffs of employees amounts to nearly $125,000 per year (this amount includes only the cost of salaries, traveling and office expenses ^that is the office personnel and not the expenses of field agents such as inspectors and the like). There seems to be little doubt that all or nearly all of these services, closely related as they are m their nature, might be consolidated in a single department, each under the management of a single official and these officials to be under the supervision of, and made responsible to, the secretary of agriculture. This is the method of organization for the United States Department of Agriculture, and is followed also in many American states and in most foreign countries. Recommendations. The following recommendations are offered for consideration: 1. That the State Board of Agriculture, the Board of Directors of the Farmers' Institute (but not the Institute itself), the Board of Live Stock Commissioners, and the Stallion Registration Board be abolished. 2. That a department of agriculture be created, at the head of which shall be a secretary of agriculture to be appointed by the Gov- ernor, with the advice and consent of the Senate. 3. That the services now performed by the above mentioned boards, also those performed by the State veterinarian, the biological laboratory, the board of veterinary examiners, the State inspector of apiaries, and those of the State entomologist office which have to do with the inspection of trees, plants and shrubs be transferred to the said department and placed under the supervision of the Secretary of Agriculture. 4. That the following offices be created in the department of agriculture the incumbents of which shall be appointed by the Gov- ernor, or the secretary of agriculture, each of whom shall be subject within certain limits, to the supervision and direction of the secretary of agriculture and who shall be required to report to him : (a) A Superintendent of the State Fair who shall arrange for the holding of the fair subject to the provision that the award of con- tracts for the erection of buildings, and rules and regulations determin- ing the amount of premiums* to be offered for exhibits and the granting of space concessions shall be made by a board consisting of the super- int^endent of the State fair, the secretary of agriculture and not more than three other members appointed by the Governor with the consent of the Senate. 640 EFFICIENCY AND ECONOMY COMMITTEE. AGRICULTURAL AGENCIES 641 II (b) A Superintendent of Farmers' Institutes who shall be charged with making arrangements for the annual meeting of the State Farmers' Institute, the publication of its proceedings, the arrange- ments for local institutes, the selection of speakers, instructor, etc. An advisory board or committee should be provided to co-operate with the superintendent of the Farmers* Institute. (c) A Live Stock Commissioner who shall be charged with the enforcement of the laws enacted for the promotion of the live stock interests and for the eradication and control of contagious dis- eases among animals. The power of establishing quarantine, of fram- ing regulations in regard to the transportation of live stock, the con- demnation of diseased animals and the destruction of infected barns and stables shall be subject to the approval of the Secretary of Agriculture or in some cases of the Governor. The board of veterinary examiners, the state veterinarian and the biological laboratory should be under the Live Stock Bureau ; the regis- tration of stallions should be carried on in the office of the Live Stock Commissioner by a registrar of stallion pedigrees; and the humane agents should be under the supervision of the Live Stock Commissioner. (d) An Inspector of Apiaries and Nurseries who shall be charged with the enforcement of the laws relating to the inspection of bee hives, trees, plants and shrubs. (e) Finally, all private associations dealing with agricultural and related interests receiving State aid should be subject to the supervision of the Secretary of Agriculture, their requests for appropriations should be approved by him and incorporated in his biennial budget of esti- mates ; and they should be required to report to him in regard to the purposes for which all appropriations made for their use have been expended. OUTLINE OF PROPOSED ORGANIZATION. Department of Agriculture. Head of the Department : The Secretary of* Agriculture. Bureau and Offices : 1. The Superintendent of the State Fair. State Fair Commission. 2. The Superintendent of Farmers' Institutes. Advisory Committee. 3. The Live Stock Commissioner. (a) The State Veterinarian. (b) The Registrar of Stallion Pedigrees. (c) The Humane Agents. (d) The Director of the State Biological Laboratory. (e) The Board of Veterinary Examiners. 4. The Inspection of Apiaries and Nurseries. The following comparative statement of the expense for salaries per diem and personal expenses of the present list of agricultural authorities and for salaries of the proposed department of agriculture shows that there will be a direct reduction in administrative expenses under the plan presented : PRESENT AUTHORITIES. Per Annum. Board of Agriculture (Expenses of Members) $ 8,000 Secretary 3,500 Board of Directors of Farmers* Institutes (Expenses).. 5,000 Secretary 2,000 Live Stock Commission (Per diem and Expenses) 12,500 State Veterinarian (Per diem) 3,0(X) Stallion Registration Board 6,000 Humane Agents 4,800 Inspector of Apiaries 2,000 Total $46,800 PROPOSED DEPARTMENT. Secretary of Agriculture $ 5,000 Superintendent of State Fair 3,500 Superintendent of Farmers' Institute 2,500 Advisory Boards (Expenses) 2,000 Live Stock Commissioner 4,000 State Veterinarian 3,000 Stallion Registrar 2,500 Humane Agents 4,800 Inspector of Apiaries and Nurseries 2,500 Total $29,800 Reduction $17,000 Of much more importance than the direct saving in administrative salaries, is the increased efficiency and economy to be secured through a better organization. With competent officials giving full time to their public duties, much more efficient results could be secured at a con- siderable reduction in the expense now incurred. mt A REPORT ON PUBLIC HEALTH ADMINISTRATION BY JOHN M. MATHEWS ASSOCIATE IN POLITICAL SCIENCE UNIVERSITY OF ILLINOIS W"^' < ^KJrMl'i 4 :; CONTENTS Page I. PUBLIC HEALTH ADMINISTRATION IN ILLINOIS 647-659 1. State Board of Health 642 Organization 647 Relations to other State Agencies 64S Relations to Local Authorities 649 Powers and Duties 649 Examining and Licensing 649 CoJIection and Dissemination of Information 650 Vital Statistics 650 Investigations .651 Publications 652 Measures for the Prevention or Eradication of Disease 652 Methods of Enforcement*. 652 Financial Summary 654 2. State Food Commissioner. \ . . .654 Introduction 654 State Food Commissioner and Food Standard Commission 655 Powers and Duties 656 General Provisions 656 Rules and Regulations 657 Licenses 657 Inspections 657 Analyses 658 Hearings — Prosecutions 658 Educational Work , 659 Reports and Publications 659 Relations to Other Officials 659 Food Commissioners in other States 659 Recommendations 660 3. State Board of Pharmacy 660 Organization .* 660 Powers and Duties 661 Examining and Licensing 662 Enforcement of certain Acts 662 4. State Board of Dental Examiners 663 Organization 663 Powers and Duties , 663 II. Ill Page 5. State Barbers Examining Board - ^ Organization ^ Powers and Duties Examinations Enforcing Sanitary Rules. ^ Revoking Certificates ^ 6 State Board of Nurse Examiners ^^ ^ . ^. oo5 Organization ^- Powers and Duties ^ 000 Operations ^^ Finances ^^ Registration of Nurses in other States ^ Complaints and Suggestions 7. Summary and Recommendations Financial Summary ^ Recommendations STATE PUBLIC HEALTH ADMINISTRATION ' Historical ^^j Organization of State Health Authorities • ^^^ State Boards of Health t The Executive Officer Other Officers and Employees Divisions and Bureaus , -. ,. o/o Powers and Duties „ Methods of Classification Information and Research Examining and Licensing Functions Prevention of Disease Relations between State and Local Authorities ^ State Health Administration in New York and Wisconsin... ^^ New York .qq ,,^. . 060 Wisconsin REORCANIZATION AND COORDINATIOX OF HEALTH AGEN :iES ^^^ AQO Plan Submitted by the State Board of Health ^W it • A REPORT ON PUBLIC HEALTH ADMINISTRATION By John M. Mathews, University of Illinois. I. PUBLIC HEALTH ADMINISTRATION IN ILLINOIS. Economy in public health administration in Illinois can probably be brought about in part by a reorganization and combination of vari- ous boards and by the adoption of more efficient methods, but, in order that the health of the people of Illinois shall be adequately safeguarded, additional expenditures will probably be necessary. If, through such increased appropriations, the percentage of deaths per 1,000 inhabitants in the State can be reduced by only a few points, the result will be the saving of thousands of Hves annually to the State, and the productive value to the State of the lives thus saved can scarcely be estimated. It may, therefore, in the long run, be more economical to make larger appropriations than at present for the administration of public health. The immediate object in improving the public health service of the State, therefore, should be efficiency rather than economy. The principal agencies provided for carrying on public health administration in Illinois are the following: 1. State Board of Health 2. State Food Commissioner and Food Standard Commission. 3. State Board of Pharmacy 4.. State Board of Dental Examiners 5. Barbers' Examining Board 6. State Board of Nurse Examiners Some functions related to public health are performed by the State department of Factory Inspection, the State Water Survey and the Rivers and Lakes Commission, which are considered in other reports. In addition to these State agencies, much of the work of pubHc health administration is in the hands of local agencies, such as county and municipal boards of health, and boards of trustees of sanitary, water, and drainage districts. 1. THE STATE BOARD OF HEALTH. Organization. This board was created by an Act of May 28, 1877, and consists of seven persons, appointed by the Governor, by and with the advice and consent of the Senate. They hold office for seven years, and the terms are so arranged that one expires annually. Thus a Governor, during a single term, ordinarily appoints barely a majority of the board. It is not required by law that the members of the board shall be physicians or sanitarians, or that they shall have any special quali- hcations. Meetings of the board are required to be held at least twice a year. A president of the board is chosen from among its members. :l* i 543 EFFICIENCY AND ECONOMY COMMITTEE. The board also elects a secretary, who acts as the executive officer of the board and is charged with such duties as may be prescribed by die board. No special qualifications are required of the secretary, and he may or may not be a member of the board. The members of the board receive a compensation of ten dollars per day for each day actually spent in attending to the busmess of the board. The salary of the secretary is fixed by the board The other principal officers serving under the board are the registrar of vita statistics, attorney, bacteriologist, chief sanitary inspector and chief inspector of lodging houses. The present staff of employes under the board, with their annual salaries, are as follows : $3,600 Secretary ^ j gQQ Bacteriologist j'^qq Registrar of vital statistics ^'g^^ Chief sanitary inspector 2'5oo Attorney • o'qGO Chief inspector of lodging houses ^'^ Chief clerk .*;:;;.*;;;;; uoo Clerk 2 000 Two clerks at $1,000 J'^ Stenographer and clerk 'g^ Janitor and messenger j qqq Stenographer •••••••;• '11^ ..'.'.'.'.'.V.'. 2700 Three stenographers at $900 ^ ^ Clerk '".'.'.'. l',500 ^\^'l ;'::::::;!!!!!i!'ii*..... 1.080 Clerk : 900 Messenger qqq Law clerk ;*.''*', / V/oAA fiOflO Five (5) assistant inspectors of lodging houses at $1,^00 o,uw Stenographer and clerk • * * * •' Total salaries ^^^'^^^ Relation to Other State Agencies, The State Board of Health is required by law to make a report to the Governor by January 1 of each year, outlining its activities dur- ing the previous year. With regard to other State boards having to do with the public health, the State Board of Health is. empowered to approve the rules providing for the sanitary regulation of barber shops adopted by the Barbers' Examining Board. The State Boara of Health may submit to the State Food Commissioner samples 01 food or drink for analysis, and receive special reports thereon from him. The State Board of Health has relations with the State Department of Factory Inspection in connection with the matter of occupational diseases. Under the Occupational Disease Act of May 26, Ui^* monthly physical examinations are to be made by licensed physicians of employees in certain occupations, and reports of the results of sue examination are to be sent by the physicians to the State ^oanl Health upon blanks furnished by the board for that purpose. A copy of the reports thus received is to be transmitted by the secretary o. m State Board of Health to the State Department of Factory Inspection. PUBLIC HEALTH ADMINISTRATION. Relations to Local Authorities. 649 Whenever local boards of health or local authorities fail to enforce efficient measures for the suppression of contagious diseases, the State }3oard of Health may take such measures a§ seem necessary, and the expenses so incurred shall be paid by the city or village for which the services are rendered. When local authorities have established quar- antine, the State board may modify or relax it, and, on the other hand, where the local authorities fail to establish quarantine, the State board may do so. The State board is dependent on the State's attorneys to prosecute persons who violate the rules and regulations of the State board, in the absence of special appropriation to employ private attor- neys for the purpose. The State board issues to the county clerks prescribed forms for reporting vital statistics. Powers and Duties. The work of the State Board of Health may be classified under the following heads: Examining and Licensing function. Collection and dissemination of information. Measures for the prevention or eradication of disease. Examining and Licensing: For the purpose of regulating the practice of medicine, three early Acts were passed in quick succession. An Act of 1817 provided for the incorporation of medical societies for this purpose. By an Act of 1819, the State was divided into four districts, and all practicing physi- cians in each district were constituted bodies corporate with power to examine all applicants for licenses. Persons producing diplomas from any "respectable university" in the United States were not subject to examination. Any person, however, had the right to practice medicine, but, unless he held a medical license from the medical society in his district, he was barred from suing for fees for professional services. This Act was superseded by the Act of 1820, according to which the State was divided into five districts and the practicing physicians in each district were authorized to meet and elect a censor. The five censors thus elected constituted the State Examining Board. Under the Act of 1877 creating the State Board of Health, that body was given power to license practitioners of medicine and surgery. But those who had been practicing for ten years, and holders of diplomas from medical schools were entitled to licenses from the board without examination. Others could procure a license only by passing an examination given by the board. Licenses were subject to revoca- tion by the board for unprofessional or dishonorable conduct. ^ By various amendments passed since the original Act and its revision of 1899, the State Board of Health has been given wider powers over the admission to the practice of medicine and surgery, and the powers of the board have been extended to include the admission to practice of persons who treat diseases by methods other than those of medicine and surgery. w Js m 650 EFFICIENCY AND ECONOMY COMMITTEE. By an amendment of 1907 the board is empowered to establish standards of preliminary education deemed requisite to admission to a medical college in good standing and to require satisfactory proof of the enforcement of this standard by medical colleges. Every applicant for a license must produce* satisfactory proof to the board that he is a graduate of a medical college in good standing, as may be determined by the board, and must pass before the board an examination in those subjects a knowledge of which is commonly required of candidates for the degree of doctor of medicine by reputable medical colleges in the United States. The board may confer licenses without examination, however, upon physicians licensed in other States in which the requirements of medical registration are deemed by the board to have been practically equivalent to those in force in Illinois, and upon physicians who have graduated from medical colleges in good standing and have passed examination before the United States Army or Navy, or the United States Public Health and Marine Hospital service. All licenses granted by the board must be recorded by the holder in the office of the county clerk in the county in which he resides or practices within three months from the date of .the license. Under the Act of 1899, the State Board of Health is empowered to refuse to issue licenses to persons guilty of criminal practice or who advertise under names other than their own or for other unprofessional or dishonorable conduct, and may revoke licenses for like causes. But before a license can be refused or revoked, the applicant or holder Is entitled to a hearing before the board. This Act, however, has been construed by the Supreme Court as having no retroactive eflfect upon licenses issued before its passage, with the result that the power of the board to revoke licenses is limited to those physicians who were licensed subsequent to July 1, 1899. Bills to remedy this defect have been introduced in the Forty-fifth, Forty-sixth and Forty-seventh General Assemblies, but failed to become laws in spite of the recommendation of Governor Deneen that such a bill be passed. (See his biennial message of 1911, p. 19.) The State Board of Health holds examinations for the licensure of physicians, mid-wives, "other practitioners," and embalmers. The examinations are conducted by the secretary of the board. The mem- bers of the board who prepare questions and rate answers do not, as a rule, attend the examinations. Collection and Dissemination of Information: Vital Statistics — An Act of 1843 provided for a voluntary mode of registration of births and deaths with the county clerk, but this method of collecting vital and mortuary statistics was naturally far from effective. Under the Act of 1877, creating the State Board of Health, that body is given general supervision of the State system of registration of births and deaths. The clerical services and safe-keeping of the bureau ot vital statistics are provided by the Secretary of State. By Act of May 6, 1903, it is made the duty of every physician and midwife who attends the birth of a child, to make, within thirty days PUBLIC HEALTH ADMINISTRATION. 651 thereafter, a report of the occurrence, with such other information as may be required by the State Board of Health, in writing, to the county clerk of the county in which the birth takes place. In cities of 50,000 population, such reports may be made to the city commissioner of health, who delivers them to the county clerk, who in turn delivers all reports to the State Board of Health. Likewise, reports .of deaths are required to be made by physicians, midwives, and coroners to the State Board of Health, unless such deaths occur in the corporate limits of a city where permits must be secured before the body may be removed or buried. In such cases reports are made to the permit issuing officer, who later forwards them to the State Board of Health. In order to secure uniformity in the information obtained, it is required that all such reports of births and deaths shall be made in strict accordance with forms prescribed by the State Board of Health. Blank reports in the prescribed form are to be printed by the county clerk and distributed free to physicians, midwives and coroners. Previous to 1903, no compensation was paid to persons making the required reports of births and deaths, and, partly in consequence of this omission, the law was a dead letter. Under the law of 1903, however, a fee of twenty-five cents is allowed for each report of a birth or death ; and such fees, together with the cost of printing blank reports, con- stitute a charge upon the counties. Many counties fail to make appro- priation for such expenses, and in many localities the reports are frag- mentary and lacking in accuracy. The object of collecting vital statistics has been described as being "to give warning of the undue increase of disease or death that is presumed to be due to preventable cause, and also to indicate the locali- ties in which sanitary effort is most desirable and most likely to be of use." This object cannot be attained without full and accurate statis- tics running continuously over a considerable period of time, and such statistics cannot be even approximately obtained when the collection is dependent in certain essential particulars upon the voluntary action of counties. Reports of deaths are fairly complete from cities and villages requiring the issuance of burial permits, but deaths in other parts of the State and births nearly everywhere are very inadequately reported. There would seem to be a need for a new birth and death Act, preferably one meeting the requirements of the United States Census Bureau. ^ Investigations — In addition to collecting vital and mortuary statis- tics the State Board of Health also conducts investigafions into health conditions in various parts of the State in order to discover the causes of communicable diseases and to collect the necessary information as a ■^^'i^is for taking measures for the suppression of epidemics. The board "maintains at Springfield a laboratory for the diagnosis of diseases and or the examination of specimens of various substances involved in the netection of disease. By special arrangement, the State Water Survey ^1 tirbana takes care of the examination of the sources of water sup- P ics and the study of the proper disposition of sewage. It makes jeniical analyses of samples of drinking water sent to it for that Purpose. The State Board of Health distributes diphtheria antitoxin 652 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATION. 653 f 'Vi' free of charge to those who may be in need of it, and unable to pay therefor. The board is empowered to appoint one or more agents in each county for the sale or distribution of the antitoxm. Publications— Tht State Board of Health issues a number of pub- lications. From time to time official registers of physicians and mid- wives are prepared andissued, together with lists of medical institutions represented in the official register of physicians, a schedule of require- ments for medical schools in good standing, list of certificates revoked, etc The board has also issued a number of special bulletms from time to time giving information of a popular character concerning the proper precautions to be taken against certain diseases. In 1913 the board issued a model health ordinance for adoption by cities and villages. In 1903 the board began the issuance of monthly bulletms m which topics of general health interest were discussed. They were soon dis- continued, but the series was again taken up in 1906, but none has been issued since November, 1912. The monthly bulletin for December of each year contains the annual report of the board to the Governor. Measures for the Prevention or Eradication of Disease: Under this head would be included such matters as the establish- ment and maintenance of quarantine, the abatement of nuisances the control of epidemics in cities, villages, and townships when local authori- ties fail to take proper steps, the issuance of rules and regulations for carrying into effect the provisions of various Acts for the protection of the public health, and the supervision of sanitary conditions in lodging houses and hotels in cities of 100,000 population and over. Among the rules and regulations issued by the board may be men- tioned those dealing with the embalming and transportation of dead bodies and with the draining, construction and plumbmg of hotels and lodging houses. By Act of 1899, amended in 1901, the State Board of Health is given supervision over lodging houses in Chicago, and the duty was imposed upon it to have such housps inspected so as to see that t.ie provisions of the Act are complied with. The Act deals with ventila- tion, size of rooms in which persons are to be allowed to sleep, arrange- ment of beds, etc. The proprietor or manager of every such lodging house is required to file annually with the county clerk a statement of various pertinent facts concerning the house upon blanks furnished to the county clerk for that purpose by the State Board of Health. ^ An Act of Jfine 25, 1913, giVes the State Board of Health authority to make rules and regulations concerning the drainage, construction ami plumbing of all lodging houses, having as many as ten rooms for tlie accommodation of guests, not only in Chicago, but in all cities, villages and incorporated towns in the State. Methods of Enforcement. To a large extent the State Board of Health is dependent upon local authorities and boards for the enforcement of its rules and rega.a- tions. It is made the duty of all local boards of health, health authori- ties and police officers, sheriffs, constables and all other officers ana employees of the State or of any county, village, city or township, to enforce the rules and regulations that may be adopted by the board. Moi-e specifically it is provided that persons guilty of violating any rule or regulation of the board shall be liable to a fine not exceeding $200 for each offense and to imprisonment in the county jail not exceeding six months, or both. At the instance of the board or its executive officer, it is made the duty of the State's attorney in each county to prosecute all persons in the county refusing to obey the rules and regulations of the board. In the Act of 1905 for the regulation of the embalming and dis- posal of dead bodies, it is not only made the duty of the State's attor- neys to see that the provisions of the Act are enforced in their respective counties, but it is also made the duty of all sheriffs, deputy sheriffs, con- stables, and police officers to inform against and prosecute all persons whom there is reasonable cause to believe are guilty of the violation of any of the provisions of the Act. The very considerable dependence which the State Board of Health must place upon local officers, and particularly upon the State's attor- neys, for the enforcement of its rules and regulations is undoubtedly a handicap of a serious character upon their efficient enforcement. There is much complaint by the State board regarding the inactivity of State's attorneys, and it is well known that it is sometimes difficult to get State's attorneys to bring prosecutions against persons who have local political influence. Formerly the board was able to employ •special attorneys to prosecute violators of the medical practice Act out of the proceeds of the fines collected from such violators, but under existing law all moneys received from fees, charges, fines, and penalties are to be paid into the State Treasury and cannot be used for the employment of special attorneys in the counties. The board has an attorney, but his time is occupied in prosecuting offenders in Chicago, and, in the counties, whenever the State's attorneys fail to bring suit against viola- tors of the law reported to him the board is powerless to act. The prosecution of quacks in Chicago, as well as in the rest of the State, is also seriously interfered with by the defect in the law, mentioned above, whereby the State board is unable to revoke the licenses of per- sons who received their licenses prior to 1899. The inactivity of the State's attorneys in cooperating with the State Board of Health by prosecuting violations of the Medical Practice Act causes the board to rely principally upon its special attorney to prosecute such violations. The employment of special attorneys by Mate boards, however, tends to split up' the legal business of the State '" ^^ich a way as to cause conflict or friction between attorneys of afferent boards. A solution of this difficulty might be worked out by having the Attorney-General assign an attorney to the State Board of ^alth. Such an attorney would be attached to the Attorney-General's omce and subject to central supervision^ though under the immediate fiirection of the State Board of Health. It is probable that the State's fl! A^^ ^'ould co-operate more readily with an attorney attached to ne Attorney-General's office than with a special attorney under the ^tate Board of Health. ^*. lii iiji 654 EFFICIENCY AND ECONOMY COMMITTEE. The decisions of the board, in revoking or refusing to grant licenses in refusing to recognize medical colleges as being in good standnig and in other instances, are subject to judicial review, and a number of cases have arisen in the courts by way of appeal from the decisions of the State Board of Health. Financial Summary, The State Board of Health receives from the Legislature annual appropriations and pays out by way of salaries of employees the sum of $37 720 Other expenses are met from appropriations as follows : ^ , . ' , _, ^37,720 Salaries of employees ^ r rjr,r, ^ Farm and dairy investigations ^ ^'VJ^ Office and traveling expenses ^'^g^ Laboratory expenses 8 000 Epidemic fund 6 000 Emergency contingent fund -jq nm Purchase and distribution of antitoxm • ^(vv\ Purchase and distribution of antitoxin (emergency) /,wu Treatment of rabies in indigent i^qm Expenses of State Board exammations • ^^'^^ Expenses State Board examinations (emergency) ^-^ Distribution of typhoid vaccine ^'^ Prevention of blindness in chddren ^-^jJJ Expenses of lodging house mspectors • ^'^^ 99^9 Total annual appropriations • • ' ^^^^^^^ The State board collects fees varying in amount from^ $1 to $1U for various services performed, such as admission to examination and issuance of licenses. Under the Act of 1901 it was provided that the per diem of members of the board should be paid out of such fees, and not out of the State Treasury, but by Act of 1911, as already noted all such fees must be paid into the State Treasury, and it is therefore provided that the compensation of members of the board may be paid out of the State Treasury, upon appropriation being made theretor. The board is required to make an annual report on September JU, show- ing all items of receipts from all sources and disbursements for all purposes. Receipts and disbursements from October 1, 1912, to September 30, 1914, were as follows : Receipts. October 1. 1912, to September 30, 1913 ? 25,l«/.^3 Receipts, October 1. 1913, to September 30, 1914 7>^JU.^ ^ , , . , $ 54,909.55 Total receipts 216,212.54 Disbursements . 2. STATE FOOD COMMISSIONER. Introduction. As early as the Revised Laws of 1827, the Criminal Code of Illi- nois contained a provision that : If any person or persons shall knowingly sell any flesh of ^f^y^fj'^^j.^k animal, or other unwholesome provisions, or any pernicious o^ jidulteratea a, - or liquors, every person so offending shall be fined not exceedmg one hunar dollars, or imprisoned not exceeding three months. PUBLIC HEALTH ADMINISTRATION. 655 This section of the Criminal Law was re-enacted in the Revised Statutes of 1845, and from time to time additional and more specific legislation has been enacted regulating and prohibiting the sale of adul- terated and dangerous foods and drugs, as follows: 1869— To prohibit making and selling poisonous candies; and to prohibit the supply and use of diluted, adulterated or stripped milk for the manufac- ture of cheese. 1871 — To regulate the sale of abortifacient drugs. 1874-1877— Sections 7, 8, 9 and 10 of the Criminal Law to prevent fraud in the coloring of grain. 1879— To regulate the sale of milk; and to prevent fraud in the manufacture and sale of butter and cheese. 1881— To prevent the adulteration of butter and cheese. To prevent the adulteration of food, drink and medicine. 1883 — To prevent the adulteration of vinegar. 1885— To regulate the sale of canned or preserved food. 1887— To regulate the sale of veal; and to regulate the manufacture and sale of substitutes for butter. 1889— To prevent fraud in the sale of lard; and to fix the standard of analysis for milk. 1897— To regulate the manufacture and sale of substitutes for butter ; and to fix the standard of analysis for milk. 1889— To prevent the adulteration of vinegar; and the State Food Commis- sioner's Act. 1901— To prevent fraud in the branding and sale of process and renovated butter. 1905— To regulate the sale of commercial food stuffs. 1907 — Revised Food and Drugs Act. 1911— Sanitary regulation of food supplies; and amendments to Food and Drugs Act and Stock Food Law. Until the Act of 1899, these laws were classified as part of the criminal code, and enforced through local officials. State's attorneys and boards of health. The Act of 1899 was of much broader scope, and also established the office of State Food Commissioner for its en- forcement; but was not a revision of all the laws on the subject of pure food. The Food and Drugs Act of 1907 is a general revision of the laws pertaining to foods and food products, which were brought into harmony with the United States Foods and Drugs Act. But some provisions of the earlier laws not incorporated in the Act of 1907 appear to be still in force: the Act of 1897 to regulate the manufacture and sale of substitutes for butter is specifically exempted in the clause repealing inconsistent legislation ; and the stock food law and sanitary regulation law are separate Acts. The pharmacy law is also a separate Act enforced by the Board of Pharmacy. Under the Weights and Measures Act (revised in 1913) the Secretary of State is ex-officio otate Sealer of Weights and Measures. State Food Commissioner and Food Standard Commission. The present law provides for a State Food Commissioner, to be ^?^m^^^ ^y ^^^ Governor, for a term of four years, at a salary of ^^,600 per annum. This officer is charged with the enforcement of ^li laws regarding the production, manufacture, sale, and labeling of lood, and with the prosecution of any one violating any of such laws. A Food Standard Commission is also provided for the purpose of determining and adopting standards of quality, purity or strength for lood products. This consists of three members, one of whom shall be ! t i m 656 EFFICIENCY AND ECONOMY COMMITTEE. r the State Food Commissioner, or his representative, one shall be a representative of the Illinois food manufacturing industries, and one shall be an expert chemist. The two members other than the Food Commissioner or his representative, each receive $15 per day, for not more than thirty days in any one year, and necessary expenses. The Act of 1907 further provides for the following staff— to be appointed by the commissioner, with the advice and consent of the Governor — 1 Assistant commipsioner $3,000 1 State analyst ^,500 1 Attorney I'jOO 1 Chief clerk 1.800 1 Assistant clerk J'^OO 3 Stenographers at $1,000 , Vl*?m';;i'SX 12 Inspectors at, each ^i,^i\JU to l,»UU To be appointed by the Commissioner: 1 Bacteriologist • • • • •• • • • 1»^ 7 Analytical chemists, each $1,200 to 1,800 1 Janitor • • '20 The General Assembly in 1913 made the following appropriations for the Food Commissioner: Per annum. Salaries of six stock food inspectors $ 7,200 Salaries of two chemists 2,400 Expenses of Food Commission • ^.UOU Expenses of analysts lo'nm Expenses of inspectors icm Expenses of laboratory ■^'^ For rent ^'"^ For postage ^-^ Expenses of State food mspectors ^-^ Expenses of chemists ■^''^ Expenses of attorney gvi Expenses, Food Standard Commission l'^^ Office expenses ^'^^ Total $53,900 The above salaries and appropriations amount, to over $100,000 per year. The expenses of the office for the two years ending September 30, 1912, amounted to $164,098.38; and for the two years ending Sep- tember 30, 1914, were $163,469.45. Some revenue is received from licenses and fines, the receipts paid into the State Treasury for the two years ending September 30, 1914, amounting to $34,610.65. Powers and Duties. General Proznsions: The food and drugs Act makes it unlawful to manufacture for sale within the State of Illinois any article of food or drink which is adulterated or misbranded ; defines the terms "adulterated" and ' mis- branded" ; and provides for the condemnation and confiscation of adul- terated of misbranded foods or drink. It also contains specific provi- sions in regard to branding vinegar, labeling extracts and baking pow- der, adulterated liquors, unclean or unwholesome milk, the sale of pre^ servatives, lard substitutes, and process butter. Other Acts regulate PUBLIC HEALTH ADMINISTRATION. 657 the sale of commercial food stuffs, and require premises used for the manufacture, sale or distribution of foods to be adequately lighted, drained and ventilated and kept in a sanitary condition. Standards of purity and strength are specified in the law for certain articles, such as milk, pepper, extracts, olive oil and vinegars. All articles not defined in the Act must conform to the definition and analyti- cal requirements adopted and promulgated from time to time by the Food Standard Commission. Rules and Regidations: The State Food Commissioner shall make rules and regulations for carrying out the provisions of the food and drugs Act, and for analyzing and reporting the results thereof of articles submitted by the State Board of Health, or furnished under any law of the United States relative to adulterated, misbranded or deleterious foods, etc. Licenses: , By an amendment of 1911 no person may operate a milk or cream testing apparatus to determine the percentage of butter fat in milk or cream without first securing a license from the food commissioner, on application and passing a satisfactory examination that he is competent and qualified to properly use such tester. Licenses are issued for two years; and a fee of one dollar must be paid. The food commissioner has authority for just cause to revoke any such license. During the year 1911, the department issued 205 licenses to manu- facturers, jobbers or dealers in concentrated commercial feeding stuffs. For these^ the amount received by the State Treasurer in fees was $11,212.50. Receipts from such licenses for the two years ending Sep- tember 30, 1914, amounted to $33,938.65. Inspections: The State Food Commissioner and authorized inspectors are re- quired to examine the raw materials used in the manufacture of food products; and are authorized and required to examine and inspect all premises where food is manufactured, transported, stored or sold ; and to report any violations of the law or conditions detrimental to the health of the employees or the quality of the food. • In the printed reports of the food commissioner for 1911 and 1912, examinations and inspections are reported to have been made in several hundred places throughout the State. No data is shown as to the time spent in each place or the number of premises inspected. The reports describe more fully certain special investigations made on complaint. At the time covered by these reports, the inspectors were not assigned to permanent districts; but different inspectors visited some of the same places at different times. The State has now been divided into eleven inspection districts. Tvvo inspectors are in Chicago; and there is one for each of the other districts, with headquarters at Chicago, Rockford, Champaign, Peoria, Galesburg, Jacksonville, Springfield, East St. Louis, Centralia and Mt. Carmel. Inspectors are required to spend eight hours a day ; but there seems to be no method for checking their activity, except by the reports '-1^ 1. i ' 658 ." •. EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATION. 659 submitted. A sanitary inspection report is made for each establishment visited; a list of places inspected each day is reported, and a general report on conditions in a city or town is made when the inspection has been completed. About one-tenth of the time of inspectors is estimated to be spent on investigating complaints. No inspection of stock yards or wholesale houses is made by the food inspectors. Analyses: When the food commissioner or his agents have grounds for sus- picion that any article of food is adulterated or misbranded, he may seize such article, and shall forthwith cause a sample to be examined and analyzed. Samples taken by the agents of the food commissioner must be taken to the State analyst, or other competent person appointed for the purpose of making examinations and analyses. The State Board of Health may submit to the State Food Com- rnissioner or any of his assistants samples of food or drink for examina- tion or analysis and receives special reports showing the results of such examination or analyses. The food commissioner is also required to make analyses and examinations for the State charitable institutions of foods, drugs and such other supplies as the laboratory is equipped and prepared to examine and analyze. It is unlawful for the State analyst or any assistant State analyst to furnish to any person, firm or corporation, any certificate as to the purity or excellence of any article manufactured or sold by them to be used as food or in the preparation of food. A summary of the analysis work of the department for the years 1911 and 1912 is shown below: 1911 1912 Samples taken 3^673 6,500 Number found to be adulterated or misbranded 1,123 2,091 Suits filed 239 236 In the latter part of 1913 and early months of 1914 most of the inspectors were engaged in sanitary inspections, and less attention was being given to taking samples for analysis. Hearings — Prosecutions: When it appears from examination or analysis that the provisions of the food and drug Act have been violated, the food commissioner is required to send notices of such fact, with a copy of the findings, to the party from whom the sample was obtained, and to the manufac- turer, packer or other dealer, if any, whose name appears on the label. Such party or parties shall be given an opportunity to be. heard, under rules and regulations, the date, hour and place of hearing to be named in the notices. The hearing shall be private, and parties interested may appear in person or by attorney. If, after such hearing, the commissioner believes that the Act has been violated, he shall cause the party or parties whom he believes to be guilty, to be prosecuted forthwith under the provisions of the Act. No action or prosecution shall be instituted for a violation of the pro- visions of the Act, unless commenced within six months after taking the sample. Hearings are usually held by the commissioner or the assistant commissioner ; and in most cases the proceedings are informal. Many violations of the law are of a minor and technical character, and in such cases and also in other cases of first instance, prosecutions are not begun if the parties agree to comply with the law in the future. The department attorney prepares the papers- for prosecuting cases, and sends them to the State's attorney of the proper county. If neces- sary the department attorney attends court when the case is tried. The Attorney-General is sometimes asked for a legal opinion as to the rights of the department. Educational Methods: The food commissioner's department is giving attention to a cam- paign of public education on the importance of pure foods and drinks. In this it is working in co-operation with women's clubs, traveling men's associations and other private organizations. Bulletins are issued and distributed ; and a moving picture show is furnished, for example, to illustrate the dangers from dirty drains. Reports and Publications: The food commissioner is required to make annual reports to the Governor of his work and proceedings, and to report in detail the num- ber of inspectors, with their salary, expenses and disbursements; and he may from time to time issue bulletins of information. In the annual report for 1911 there are reports from the food com- missioner, assistant commissioner, state analyst, attorney and the sev- eral inspectors, with tables in regard to samples analyzed, a statement of Supreme Court decisions, copies of bulletins issued since July 1, 1907, instructions to inspectors, tentative food standards, and copies of the Food and Drug Act as amended to 1911, the Oleomargarine and Stock Food Law and the United States Food and Drug Act of 1906. Relations to Other Officials. The sanitary inspections by the State food inspectors should be closely related to the work of the State Board of Health, and it also involves an inspection of establishments which are subject to the visits of the State factory inspectors. No arrangement for systematic co- operation between these departments appears to have been made; though occasionally an inquiry or report is sent from one of these offices to another. The State Board of Health does not seem to have sent any samples to the food commissioner for analyses. Analyses of foods and other supplies for the State charitable institutions have been made. Some effort is made by the food inspectors to secure the assistance and co-operation of local health officials — especially in the enforcement of the orders of the food inspectors. The department has also prepared a model milk ordinance which is recommended for adoption by cities and villages. Food Commissioners in Other States. In most states a food and dairy commission is charged with the administration of the laws to prevent the adulteration and misbranding \ 660 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATION. 661 of foods ; and in about half of the States this officer is at the head of an independent bureau or department. In sixteen States, however, such laws are enforced through the health authorities — Massachusetts, Vermont, New Hampshire, New Jersey, Delaware, Maryland, South Carolina, Tennessee, Louisiana, Indiana, Kansas, Oklahoma, Colorado, Montana^ Idaho and California — also in the territories of Hawaii and Porto Rico. In Maryland, the State food and drug commissioner is in charge of the division of food and drugs in the State department of health ; and analyses are made by the bureau of chemistry in the same department ; but the sanitation of dairies is in charge of the State live stock sanitary board. In Louisiana, the food and dairy commissioner is appointed by the State board of health. The enforcement of the pure food laws is in the hands of a divi- sion or bureau of the department of agriculture in a number of states, including New York, Pennsylvania, Ohio, Virginia, North Car- olina, Georgia, and Washington; in North Dakota the department of agriculture administers the dairy laws; and in several other states the department of agriculture has supervision over the sale of commercial fertilizers. Recommendations. In his biennial message to the General Assembly on January 1, 1913, Governor Deneen recommended the passage of a law regulating the cold storage of food products ; and revision of the State Pharmacy Law, transferring to the food commissioner the administration of the law regulating the sale of drugs, with power to inspect drug stores; and also the amendilient of the law relating to commercial fertilizers so as to place its enforcement in the hands of the food commissioner. The inspection service under the State Food Commissioner should also be authorized to inspect and test weights and measures ; and the State Food Commissioner should be made State Sealer of Weights and Measures. The State Food Commissioner's department should probably be combined with other health authorities in a department of health, and the inspection work of the food inspectors should be consolidated with that of the State Board of Health. The fact, however, that a consid- erable portion of the work of the State Food Commissioner does not relate prirnarily to the matter of pqblic health indicates the feasibility of combining this officer with some other department, such as the Department of Agriculture, as is done in a number of other states and in the United States government. 3. STATE BOARD OF PHARMACY. Organization. This board was established in 1881, ancf consists of five members appointed by the Governor with the advice and consent of the Senate for five year terms, so arranged that the term of one member expires annually on the thirty-first of December. The members so appointed shall be competent registered pharmacists in the State and shall have had ten year's practical experience in the dispensing of physicians' nrescriptions. The Illinois Pharmaceutical Association is authorized to report annually directly to the Governor, recommendmg the names of at least three persons whom the association deems best quahhed to fill any vacancies which may occur in the board. The board elects a president from among its own members, and also a secretary, who shall not be a member of the board. The members of the board receive no salaries, but receive a per diem of eight dollars for each day actually engaged in the busmess of the board. The members of the board are also entitled to traveling and other expenses incurred in the performance of official duties. The secretary receives a salary fixed at $3,000 per annum. The other employees of the board are a bookkeeper, an inspector, a clerk, a sten- ographer, and janitor. The expenses of the board for salaries and other items are as follows : Secretary $ 3,000 Bookkeeper }'°JJj Inspector J»oJJx Clerk 1»200 Stenographer i»^ Janitor . gjj Per diem of members J^W Expenses of members 9 nm Office expenses ^'crS Rent and Light, Chicago office ^»^^ Total expenses $20,300 The board receives fees charged for admission to examination, for issuance and renewal of certificates and from fines collected. Prior to July 1, 1911, the board paid its expenses from fees received; but by Act of that year all moneys received by the board from whatever source must be paid into the State Treasury, and the board, therefore, is now supported out of appropriations made by the General Assembly. For the two years ending July 1, 1913, those fees and fines •amounted to $46,048. For the two years ending September 30, 1914, the receipts paid to the State Treasury from the State Board of Pharmacy were $45,506.20. The disbursements for the same period were $38,513.20. The board is required to make an annual report to the Governor and to the Illinois Pharmaceutical Association. This report shall con- tain a statement of all moneys received and disbursed, and the names of all persons to whom certificates as pharmacists were granted during the time covered by the report. The board is required to hold meetings at least twice a year, and shall give pubhc notice of the time and place of such meeting. Three members of the board constitute a quorum. Poiuers and Duties. The functions of the State Board of Pharmacy may be classified as follows: Examining and licensing function. Enforcement of the Acts against the sale and use of certain drugs and chemicals. 'm 662 EFFICIENCY AND ECONOMY COMMITTEE. '8! I Examining and Licensing: No person, not a registered pharmacist, may compound medicines for sale or directly conduct a pharmacy. The board is required to hold examinations for the admission of applicants to registration as licensed pharmacists. The board issues, to persons passing satisfactory exam- inations, four grades of certificates — namely, apprentice, assistant pharmacist, registered pharmacist and local registered pharmacist. In taking an examination the applicants' attendance at a reputable school or college of pharmacy may receive credit in lieu of the required service under the supervision of a registered pharmacist. The board is em- powered to make rules to establish a uniform and reasonable stand- ard of educational requirements to be observed by schools and colleges of pharmacy, and the board may determine the reputability of such schools and colleges by reference to their compliance with such rules. All certificates of registration as licensed pharmacists issued by the board expire on the thirty-first of December following the date of issuance. It then becomes necessary for pharmacists who wish to con- tinue in the profession to secure a renewal of their certificates, which may be done upon payment to the board of a renewal fee. The board may refuse registration or renewal of certificates to, or may suspend the certificates of, registered pharmacists who are proved to be not of good moral character or so addicted to the use of stimulants as to render them unsafe to handle or sell drugs. Enforcement of Certain Acts: Acts have been passed requiring that all drugs sold at retail shall bear a label distinctly indicating the name of the article sold. Any person failing to comply with this requirement is liable to a fine. By an Act of 1907 the adulteration of any drug or chemical sold or oflfered for §ale is prohibited, and the State Board of Pharmacy is empowered to employ a chemical expert to examine into any such claimed adulteration or substitution, and report to the board upon the result of his examination. If the report justify such action, the board shall cause the offender to be prosecuted. By an Act of 1908, it is unlawful for any person to sell or give away cocaine or substances with similar properties, under penalty of fine and imprisonment. If the person so offending shall have a license as a physician, dentist, or ])harmacist, such license shall be revoked, where the sale or gift was to a person addicted to the habitual use of cocaine or similar substances. Prosecutions of persons suspected of being guilty of violation of any of the above Acts are entrusted to the State's attorneys of the counties where the offense is committed. The same objection to this method of enforcement is pertinent here as in the case of the State Board of Health. That the enforcement by the State's attorneys of the law against the sale of cocaine is not satisfactory is indicated by the request of the State Board of Pharmacy of a special appropriation to enable it to enforce the law more efficiently. PUBLIC HEALTH ADMINISTRATION. 4. STATE BOARD OF DENTAL EXAMINERS. 663 Organisation. This board was established in 1881. At present it consists of five members, appointed by the Governor for five year terms. They must be legally licensed dentists, residents of the State for five years or more and must not be in any way connected with a dental college or dental department of any institution of learning. The board chooses one of its members president and one secretary. It must hold at least one meeting annually. A majority of the members constitute a quorum. Each member of the board receives a per diem of ten dollars for each day actually engaged in the duties of the office, except the secretary, who receives a salary fixed by the board. At present he receives a salary of $1,200 and there is a stenographer employed at a salary of $900. The per diem and expenses of members and^office expenses bring the total annual appropriations of the board to $7,025. The dis- bursements for 1912-14 were $13,588.62. The receipts from the board to the State Treasury, from license, examination and other fees for the two years ending September 30, 1914, were $17,457.20. The board makes an annual report to the Governor for the year ending Decem- ^^^ ^^' P Givers and Duties. The board holds examinations to test the qualifications of persons desiring to obtain licenses as dentists. Application for a Hcense must be made to the board in writing, with proof that the applicant is of good moral character, that he is a dentist in good standing in another State, or that he is a graduate of a reputable dental or medical school. In order to determine which are reputable dental schools, the board is empowered to establish a uniform and reasonable standard of educa- tional requirements to be observed by dental schools coming within the reputable class. Licenses granted by the board must be registered with the county clerks of the counties in which the licensee desires to practice. Failure to register the license within ninety days works its forfeiture, but it may be renewed upon the payment of a fee. The board keeps a list of the legal practitioners of dentistry in the State, and for the purpose of revising such list, all licensed dentists are required to secure annually from the secretary of the board a certificate of registration and pay a fee therefor. ^ The board may refuse to issue a license, or may revoke a license already issued to individuals guilty of dishonorable or unprofessional conduct. Before taking this action, the board must give the person so charged written notice of the charges and accord him a hearing not less than twenty days after the notice. Any person who shall practice dentistry without a license is subject to prosecution, and, upon convic- tion, to the payment of a fine. Any manager or association operating dental parlors must, upon demand of the secretary of the board furnish him with a sworn statement showing the names of all persons prac- ticing or assisting in such parlors, under penalty of fine upon convic- tion of failure to do so. \ Iff 664 » ''ii< l:|l; EFFICIENCY AND ECONOMY COMMITTEE. 5. STATE BARBERS EXAMINING BOARD. PUBLIC HEALTH ADMINISTRATION. 665 Organization, This board was established in 1909 and consists of three members appointed by the Governor for two year terms. They must be prac- tical barbers, who have been for at least five years prior to their appoint- ment, engaged in the occupation of barber in the State. The board elects a president, secretary and treasurer from its own membership. Each member receives a salary of $1,200 yearly, and the board employs a stenographer and a clerk at $1,000 each. The annual expenses for salaries are thus $5,600. The total disbursements for the two years ending September 30, 1914, were $25,579.07. The receipts paid into the State Treasury for this period were $38,423.42. The board files with the Governor on July 1 of each year an itemized state- ment of its receipts and expenditures for the year. Examinations: Powers and Duties, The board is required to hold examinations four times a year in different parts of the State of applicants for certificates of registration as licensed barbers. The applicant must have studied and practiced as an apprentice for three years under a licensed barber or in a properly conducted barber school. All students or apprentices must apply to the board to have their names registered in a book kept by the board for that purpose. Those who successfully pass the examination given by the board are granted certificates of registration, which must be annually renewed on payment of a small fee. Certificates may be revoked by the board for failure to apply for a renewal as required, but only after a hearing by the board. Enforcing Sanitary Rules: The board is authorized to adopt reasonable rules for the sanitary regulation of barber shops, subject to the approval of the State Board of Health, and may enter any barber shop during business hours for the purpose of inspecting such shops and seeing that they are kept in sanitary condition. If any shop be found in an unsanitary condition, or if any barber working therein be charged with imparting any com- municable disease, the board shall immediately notify the health officer, and such shop shall be quarantined, and the barber so charged shall not practice his occupation until such quarantine shall be removed by the health officers. Revoking Certificates: The board may revoke the certificate of registration of any barber for conviction of crime, habitual drunkenness, gross incompetency, failure to comply with the sanitary rules duly issued by the board, or for having imparted any communicable disease. But before any cer- tificate can be revoked the holder must be given notice in writing of the charges against him and a public hearing before the board at a date not less than five days after the service of notice. The board may regrant a certificate after ninety days subsequent to the revoca- fion, upon receiving satisfactory proof that the disqualification has ceased to exist. Persons guilty of practicing as a barber without a cer- tificate or of wilfully employing a barber without a certificate are guilty of misdemeanors, and subject, upon conviction, to fine and imprisonment. The board was formerly allowed six deputy inspectors whose busi- ness it was to visit barber shops and inspect sanitary conditions. No appropriation for these inspectors was, however, made in 1913. 6. STATE BOARD OF NURSE EXAMINERS. Organisation. An Act of 1907 provided for the registration of nurses and estab- lished the Illinois State Board of Examiners of Registered Nurses. In 1913 a new law was passed repealing the former Act and changing the name of the board to the Illinois State Board of Nurse Examiners. The board consists of five registered nurses appointed by the Governor, with the advice and consent of the Senate, for three year terms. They must be residents of the State, actively engaged in nursing, graduates of at least five years standing from a reputable training school, have served for two years in a general hospital, and be registered as nurses under the State law. The board elects from its number a president, secretary and treasurer. The members receive $10 per diem and traveling expenses for actual service. The secretary-treasurer receives a salary, fixed by the board at $1,400 per annum. A stenographer is employed at $900 a year. The total annual appropriation for salaries, office, traveling and other expenses amounts to $5,130. Until December 13, 1913, the office of this board was in Chicago. Since that date the office has been in the State capitol at Springfield. Powers and Duties. Provision is made in the law for the registration of nurses, (a) under a temporary waiver clause, (&) by regular e?^amination, {c) by restoration of revoked licenses, and (rf) by reciprocal arrangements with other States. The board holds examinations at least twice a year for certificates of registration as licensed nurses. Certificates must be registered with the county clerk within ninety days from date of issuance; and failure to have a certificate registered works a revocation. Applicants must have been graduated from a training school for nurses connected with a hospital in good standing, with a three years' course accredited by the board ; or have been graduated from a training school with a two years' course, who have taken a year's additional- training in a reputable hospital. Under the law, the board is authorized to adopt rules, to outline and establish a course of training for accredited schools for nurses, and to inspect accredited schools. \ 666 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATION. 667 9'. i Any person practicing as a registered nurse without a certificate from the board is guilty of a misdemeanor.^ Any certificate granted may be revoked by unanimous vote of the board for gross incompetency or recklessness in the discharge of duty, or for dishonest practices. But before any certificate can be revoked, the holder is entitled to a thirty days' notice of the charges against her, and a hearing before the board. Any person whose certificate as a nurse shall be revoked or to whom a renewal of such certificate shall be denied, or any training school for nurses whose application to be placed upon the list of accredited training schools for nurses shall be denied or whose name is stricken from such list, by ruling of the board, may file a petition in the circuit court of the county praying for a reversal of such ruling. The burden of proof in such proceedings rests with the petitioner. The decision of the court is final, but does not bar a new application to the board for renewal of the revoked certificate, or for reinstatement or the list of accredited schools. Operations. The number of nurses registered under the Acts of 1907 and 1913 is shown below. ' UnderAct r. , 0^1907 Under Waiver Clause 3,094 By regular examination 342 Restored By reciprocity 13 Under Act of 1913a 167 457 4 Total 3,261 799 4 13 Total 3,449 628 4,077 Approximate number of Training Schools for Nurses 97 Number on accredited list July 10, 1914 70 Number not accredited 27 Applications pending * 9 Number schools inspected 32 a. To July 1, 1914. Finances, A fee of $10 is collected from each applicant for a registered nurse's certificate. Since July 1, 1911, these fees have been paid into the State Treasury, and the expenses of the board are paid from appro- priations made by the General Assembly. Below is a summary of the iiiiaiicial operations from July 1 , 1911, to July 1, 1914: Receipts paid into Appropria- Expend- State Treasury tions itures July 1, 1911 $24,276.86 July 1, 1911, to June 30, 1912 918.88 $5,020.00 $3,12470 July 1, 1912, to June 30, 1913 2,540.00 5,020.00 4,271.39 July 1, 1913, to June 30, 1914 7,220.01 5,130.00 4,313 54 Registration of Nurses in Other States. Thirty-nine States have laws governing the registration of nurses. Eight of these have mandatory laws — Virginia, Indiana, Iowa, Okla- 1 This does not prevent other persons from acting as "practical nurses," if they do act claim to be a "registered nurse." homa Texas, Colorado, Wyoming and Montana. Reciprocal arrange- n ents' have been made between Illinois and Indiana, Mmnesota and (liter September 1, 1914) Wisconsin, whose laws impose standards equal to or higher than in Illinois. The Illinois board considers the laws of the following States as not imposing standards equal to or hio-her than those of this State : New York, New Jersey, Michigan, Kentucky Missouri, Nebraska, Kansas, Oklahoma, Texas, Colorado, Wyoming, and Montana. Two years' training is required in the above States. There are no laws for the registration of nurses in Ohio, Maine, South Carolina, Mississippi, North Dakota, South Dakota, Utah, New Mexico and Nevada. Complaints and Suggestions. Complaints have been made to the Efficiency and Economy Com- mittee, both in regard to the substantive provisions of the nurses' law and to the administrative arrangements. It has been urged^ that the requirement of a three years' course of training is too .restrictive, as tending to limit the number of available registered nurses and to enable them to maintain unduly high rates for their services, and as hamper- ing hospitals which maintain only a two years' course. Objection has also been made to placing the administration of this law in an inde- pendent board of nurses; and it is stated that this permits a nurse on this board to exercise an official power of supervision over the management of a hospital in which she occupies a subordinate posi- tion. It has been urged that the administration of such a law should be placed directly under the State Board of Health. While it is not considered to be within the province of the Effi- ciency and Economy Committee to recommend important changes in the substantive law. it may be noted that the three year course of train- ing required in Illinois is more than in most other States, and only four States are recognized by the Illinois board as having similar requirements which justify a reciprocal arrangement in recognizing certificates of registration from such States. At the same time, four- fifths of the nurses registered in Illinois have been licensed under the waiver clauses, without complying with the requirements now imposed. On the other hand, the number of nurses registered on examination during the past year indicates that the restrictions are not so severe as to prevent a considerable addition to the supply of registered nurses.^ The purpose of the law has been to raise the standards of train- ing for nurses. Whether the standard established unduly restricts the ^npply under present conditions is a problem which concerns others tlian the nurses now registered. Without passing judgment on the merits of the complaints against the present law, it can fairly be said that the independent status of the Board of Nurse Examiners prevents the General Assembly from receiving competent and unbiased recom- mendations on such matters. Other considerations strengthen the '^pinion that the present independent position of this board is unsatis- factory. It seems clear that this work should be organized — either as a sub-division of the department of health, or as part of a general examination and licensing system. \ 668 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATION. 669 7. SUMMARY AND RECOMMENDATIONS. Financial Summary, The receipts paid into the State Treasury and the disbursements from the several State health agencies, included in this report, for the two years ending September 30, 1914, were as follows : Receipts Disbursements State Board of Health $54,909.55 $216^12.54 State Food Commissioners 34,610.65 163,469.45 State Board of Pharmacy 45,506.20 38,513.20 State Board of Dental Examiners 17,457.20 13,588.62 State Barbers' Examining Board 38,423.42 25,579.07 State Board of Nurse Examiners 8,804.01 9,423.96 Total $199,711.03 $466,786.84 Recommendations, (1) There seems to be a useless multiplication of boards having to do with health matters, and some scheme should be adopted of com- bining these independent and co-ordinate bodies into a single executive department. It is suggested that this reorganization should take some- what the following form: All the functions now performed by the various State health agencies should be concentrated in the hands of a State Health Department. To this department should be entrusted all police powers now exercised by State health agencies, including power of inspection of food, drugs, milk, water supplies, and of all public places liable to breed disease, together with the collection and dissemination of information on public health matters and, in general, taking measures for the protection of the public health. (2) There should be a State Board of Health, composed of five or seven members, appointed by the Governor, for overlapping terms. At least four of the members should be reputable physicians of at least ten years' active practice ; but it is also advisable to have on the board an expert sanitarian and a man of business experience. (3) There should be an expert sanitarian as the executive officer of the department, who should be paid a salary of not less than $5,000 a year. He should not be required to be a resident of the State, in order that the best man in the country available for this position may be secured. (4) The system of inspection of lodging houses in Chicago by the State should be abandoned, and this matter turned over to the city health commissioner. (5) The State Board of Health should be given larger powers of supervision over local health authorities for the sake of uniformity and efficiency. Where no local health authority is provided or where the local health authority is lax in the enforcement of sanitary regula- tions, the State board should be authorized to exercise the powers of health officers in that locality, the expense so incurred by the State board being a charge upon the locality. (6) The State Health Department should be organized into two main divisions, viz: a division of Public Health and a division oi ]"^^ ^^^^f^ «oards of Health and the Proposed Federal Department of Health. Dy M. IN. Maker. ( nnference for Hood City Government, 1910, page 446 Protecting Public Health in Pennsylvania, by S. G. Dixon. Annals of the American Academy of Political and .Social Science. XXXVII, 339, 1911. The Organization of the Pennsylvania State Department of Health, Bulletin of the Pennsylvania State Department of Health, August, 1911. Public Health Admini.stration in Maryland, by Carroll Fox. U. S. Public Health Service Reports, January 30, 1914. e ^J'le/^egal Side of the Administration of the Health Laws, by H. B. Shaw. Bulletin of the Vermont State Board of Health. Vol. XI, No. 4, 1911, page 35. Report of the Sulzer Special Public Health Commission to the (N. Y.) Legislature, rebruary 19, 1913. * Annual and Biennial Reports of the Several State Boards of Health. State Public Health Statutes and Regulations. Message of Governor Fielder transmitting to the (N. J.) Legislature the Second Report ot the Commission upon the Reorganization and Consolidation of the DiflFerent Departments oi the State Government, page 19. Such early attempts at the establishment of quarantine, however, were evidently ineffective, as numerous epidemics of various communi- cable diseases periodically visited the principal seaports and spread into the interior. Some of these epidemics doubtless originated as well from conditions in the cities favorable to the propagation of diseases, and others were increased in virulence thereby. The growth of the leading cities on the Atlantic coast in size and density of population increased both the danger of disease and the importance of public health measures. The need of special machinery for combatting disease in the seacoast cities was apparent, this machin- ery was at first for the i;iost part purely local in character, and all over the country, the establishment of local health authorities has, as a general rule, preceded the organization of State health authorities. Local health authorities were organized in Baltimore and Philadelphia in 1793 and 1794, respectively, and before the end of the eighteenth century New York City and Boston were similarly supplied. Among the States, Massachusetts led the way by making provision, as early as 1787, for a State-wide system of town boards of health, followed by Connecticut in 1805. To such an extent was health admin- istration considered a purely local function, that it was not until after the middle of the nineteenth century that a State administrative body was established. The first State Board of Health was established in Louisiana in 1865. This board was at first, however, merely a body for the enforcement of quarantine regulations at the port of New Orleans. Already, in 1849, a commission had been appointed in Massachu- setts to report to the Legislature a plan for a sanitary survey of the State. Among other important and far-sighted recommendations of this commission was one for the creation of a State' Board of Health, charged with the duty of enforcing the public health laws of the State. The recommendations of the commission finally bore fruit in 1869 when the first State body was established in Massachusetts having functions similar to modern boards of health. The movement towards the establishment of State boards of health has been general and continuous, so that, at the present time, such boards are found in all the States and in the more important insular possessions. In California, Delaware, Florida, Louisiana, Oklahoma and Washington, the legislature is required by the State Constitution to establish a State board of health and in Texas that body is author- ized to do so. The Constitution of Oklahoma requires the establish- ment not only of a State board of health, but also of a board of den- tistry, board of pharmacy and a pure food commission. In the other States the authority for the establishment of State boards of health rests upon legislative enactment, without specific constitutional author- ization. ORGANIZATION OF STATE HEALTH AUTHORITIES. The principal central authority entrusted in each State with the administration of the public health laws is that known usually as the State Board of Health, but occasionally as the State Board of Health and Vital Statistics, or the State Board of Health and Medical Ex- ^iil > 672 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATIO'N. 673 aininers. In addition to this board, there are also in many States other central boards charged, net with general supervision over matter., relating to the jmblic health, but with a certain special function or functions more or less closely connected therewith. One class of these special central boards have direct supervision over some particular matter connected with the public health, such as pollution of water supplies, sewage disposal, and food and drug inspection. Their func- tions tend to approach in character those performed by bodies having primarily to do with public safety or public works. In Illinois, ior example, there is a State Water Survey and a State Food Commis- sioner and Food Standard Commission, which are not under the control of the State Board of Flealth, but to which are assigned special functions relating more or less closely to the public health. The second class of these special central boards is that composed of bodies charged with the functions of examining candidates fur entrance into particular professions. Among such boards may be men- tioned those entrusted with the examination and admission of qualified persons to practice as physicians, dentists, pharmacists, nurses, barbers, midwives, embalmcrs, opticians, chiropodists and osteopaths. It should be noted, however, that in a number of States the function of examin- ing and licensing some of these practitioners is in the hands of the State Board of Health. Occasionally we find that these special central boards are subject to a measure of control by the State Board of Health, as, for example, the regulations of the State Board of Barber Examiners in Illinois must be approved by the State Board of Health before going into efifect. As a general rule, however, these boards are entirely separate and independent bodies. Working in conjunction with the State Board of Health we find also an executive* officer, variously known as the State Health Commis- sioner, Superintendent of Health, or Secretary of the State Board of Health. He may or may not be a member of the board. If a member, which is usually the case, he is apt to be either secretary or the presid- ing officer of the board, though this is not always true. His power varies from almost absolute control over the public health activities of the State to that of a mere clerical officer, exercising almost no dis- cretionary authority. State Boards of Health. The number of members of the State boards of health varies from one in Oklahoma* to thirteen in Mississippi. The average number is about seven. In the large majority of States, they are appointed by the Governor, usually with the consent of the Senate. In a number of States, however, a portion of the members serve on the board by virtue of incumbency in other offices, such as tke Governor himself, the Attorney-General and the State Veterinarian. With respect to some or all of those members who do not serve upon the board cx-offlcio, most of the States require qualifications of various kinds. The most frequent requirement is that the board shall 4 A'lthough the Constitution of Oklahoma required the creation of a State "board" of health, the legislature provided for the estal)lishment of a State department of health in charge of one commissioner. be composed in part or wholly of physicians. In about fifteen States 'in attemi)t to secure local representation is made by requiring the oeoo-raphical apportionment of^he members among districts, counties, or sections of the State. In about a dozen States it is either customary or required by law that an engineer shall be appointed on the board. A more recent tendency is toward the requirement that the mem- bership of the board shall include one or more sanitarians. The increased attention being given to means of preventing disease is an assistance in accelerating this tendency. The New York Act of 1913 're(|nires, for example, that the public health council shall consist, besides the cominissioner of health, of six members, "of whom at least three shall be physicians who shall have had training or experience in sani- tary science, and one shall be a sanitary engineer." The terms of the members of State boards of health vary from two to seven years, the average being about four years. The members, other than the executive officer, are not expected to devote their whole time to the work, and are not usually, therefore, paid a salary. How- ever, they are generally allowed a per diem and expenses for actual work. The principal facts connected with the organization of State boards of health in the various States may be seen from the foUow- nig table Date State • • Est. Alabama 1875 Arizona 1903 Arkansas 1881 California 1870 Colorado 1893 Connecticut 1878 Delaware 1879 Florida 1889 Georgia 1903 Idaho 1907 Illinois 1877 Indiana 1881 Iowa 1880 Kansas 1885 Kentucky 1878 Louisiana 1855 Maine 1885 Maryland 1874 Massachusetts 1869 Michigan 1873 Minnesoto 1872 Mississippi 1877 Missouri 1883 Montana 1901 Nebraska 1891 Nevada 1893 New Hampshire 1881 STATE BOARDS OF HEALTH Otialifi. cations (S No. of How for some Members Chosen Members) New Jersey New Mexico New York North Carolina North Dakota 1877 1903 1880 1877 1885 3 6 7 9 7 7 3 13 5 7 5 10 10 8 7 7 7 7 7 9 13 7 7 7 3 6 6 7 7 9 3 Yes Yes(S) Yes(S) Yes Ex. Off. & Gov. Gov. & Sen. Gov. & Sen. Gov. & Sen. Gov. & Sen. Gov. & Sen. Gov. & Sen. Gov. & Sen. Ex. Off. & Gov. Gov. & Sen. By Ex. Off. Board Yes(S) Ex. Off. & Gov. Yes(S) Gov. & Sen. Gov. & Sen. Gov. & Sen. Governor Ex. Off. & Gov. Gov. & Com. Gov. & Sen. Gov. & Sen. Yes(S) Yes Yes(S) Yes(S) Yes(S) Yes Yes Yes(S) Gov. & Sen. Ex. Off. & Gov. Ex. Off. & Gov. Gov. & Sen. Ex. Off. & Gov. Gov. & Sen. Gov. & Sen. Governor Ex. Off. & Gov. Yes Yes(S) Yes(S) Yes Yes(S) Yes(S) Yes Yes Yes(S) Yes(S) Minimum No. of Meetings Terms Annually 2 2 4 6 6 2 4 6 4 7 4 7 3 6 7 6 4 7 6 3 4 4 4 4 4 4 6 4 6 6 2 2 4 4 2 4 2 1 2 1 2 4 2 4 2 4 4 4 12 4 4 2 2 2 4 4 4 2 1 2 \ I 674 EFFICIENCY AND ECONOMY COMMITTEE. Qualifi. Minimum cations (S No nf Date No. of How for some IVlept inct, Est. Members Chosen Members) Terms } Annually 1886 8 Exoff. & Gov. 7 1 1890 1 Gov. & Sen. 4 A 1903 7 Gov. & Sen. Yes 4 1 1885 7 Gov. & Sen. Yes(S) 4 A 1878 7 Gov. & Sen. Yes(S) 6 4 1878 9 Yes(S) 7 1 1895 5 Gov. & Sen. Yes 5 2 1877 4 Exoff. & Gov. Yes(S) 6 4 1909 7 Gov. & Sen. Yes 2 4 1898 7 Gov. & Sen. Yes(S) 7 4 1886 3 Gov. & Com. 6 K2 2 1872 12 Gov. & Sen. Yes 4 1891 6 Exoff. & Gov. 5 2 1881 10 Gov. & Sen. Yes 4 1876 7 Gov. & Sen. 7 2 1901 3 Gov. & Sen. Yes(S) 4 2 State Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming The Execntk'c Officer: The executive officer, who is usually the Secretary of the State Board of Health, is, in the majority of the States, appointed by the board itself. In others he is appointed by the Governor, with the con- sent of the Senate. He serves for a definite term in about half the States. This varies from one to six years. In the others, he serves for an indefinite term, which may be duringr jrood behavior, or during- the pleasure of the board. The salaries received by the executive officer vary from $200 per annum in Wyoming to $10,000 per annum in Pennsylvania. In the States where small salaries are paid he, of course, is not expected to devote his entire time to his official duties. In only three States. however, California, Indiana and North Carolina, is he required hv law to give all his time to the duties of his office, and in New York he is forbidden to engage in any occupation which would conflict with the performance of his official duties. In all but nine States, qualifications of some sort are required of the executive officer. In many States, the executive officer is himself a mernber of the State Board of Health, in which case he is, of course, subject to the same requirements of qualifications which rest upon the other members of the board, but usually additional qualifications are required of him. The most frequent qualification found is that he shall^ be a physician. In a nimiber of States this qualification is ampli- fied into the requirement that he shall be an experienced physician. The States which are furthest advanced in public health matters, however, are not content merely with the requirement that the executive officer shall be versed in medical science. The New York law, for example, provides that he shall be "a physician, a graduate of an incor- porated medical college, of at least ten years' experience in the actual practice of his profession, and of skill and experience in public health duties and sanitary science." Some of the principal facts connected with the position of the executive officer in the several States may be presented in tabular form as follows : State Alabama Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota^ Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico North Carolina New York North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming PUBLIC HEALTH ADMINISTRATION. 675 STATE HEALTH OFFICERS How Chosen Board Governor Board Board Board Board Board Board Board Board Board Board Board Board Board Governor Board Board Board Gov. & Sen. Board Board Board Board Governor Governor Board Gov. & Sen. Board Gov. & Sen. Governor Board Governor Board Gov. & Sen. Board Gov. & Board Board Board Governor Board Board Governor Board Board Board Governor Term Salary 5 $5,000 2 $2,000 2 Indefinite $3,600 2 $1 500 Good Behavior $3^000 Pleasure of Board 4 $3,000 6 $2,000 Good Behavior $1,800 Indefinite $3,600 4 $3,000 Indefinite ^ $3,000 Good Behavior $2,500 4 $1,200 4 $5,000 Good Behavior Good Behavior $2,500 Pleasure of Board $5,000 6 $2,500 Pleasure of Board $4,000 Indefinite $500 Indefinite $2,400 4 $3,000 1 $1,800 4 $1,500 Pleasure of Board $2,500 6 $2,500 Indefinite per day $5.00 6 4 2 Indefinite 4 Good Behavior 4 Pleasure of Board Pleasure of Board Indefinite 5 2 Pleasure of Board Pleasure of Board 4 5 4 Pleasure of Board 4 $3,000 $8,000 $1,200 $3,500 $1,800 $4,000 $10,000 $2,700 $2,500 $5.00a $3,500 $2,500 $2,750 $3,500 $3,600 $500 $200 Qualifications Physician Physician Sanitarian Physician Physician Phy. and Sanitarian Physician Exp. Physician None Exp. Phy. & Sanit'n. Physician None None Physician None Phy. and Sanitarian None Physician None Phy. and Sanitarian Physician Physician Physician Exp. Physician Exp. Physician Exp. Phy. & Sanit*n. Physician None None Exp. Physician Physician Phy. and Sanitarian Exp. Physician Physician Exp. Physician Physician Physician Sanitarian Exp. Phy. & Sanit'n. Physician None Physician The question of the relation between the executive officer and the State Board of Health, and the amount and kind of power entrusted to each, is an important one. In general the working and action of the State Department of Health is apt to be less efficient in proportion to the extent to which the executive officer is subject to the control of the board in the performance of executive duties. The executive officer IS more in touch with public health matters than the board, and has less difficulty in making up his mind in the face of an emergency as to what action should be taken, and is therefore able to take action more o Per day. \¥ m mm \ I I i - *■ 676 EFFICIENCY AND ECONOMY COMMITTEE. promptly than the hoard would, or than he himself would if subject to the control of the board. For these reasons the executive officer should be entrusted with entire control of executive matters connected with public health administration by the State department, subject only to the possibility of removal from office by the board for good and suffi- cient cause. On the other hand, in the drawings: up of sanitary re.s^ulations and the adoption of s^eneral rules, which is in reality a legislative function, the participation, if not control of the board, is desirable. In such matters several heads are generally better than one. Even in such matters, however, it might be better to confine the board to advice and counsel, leaving the final decision to the executive officer. The moral support and aid through advice and encouragement which an able and progressive but not meddlesome or overbearing board may give to the executive officer cannot wisely be dispensed with. But the actual management and direction of public health administration in the State should be largely in the hands of the executive officer. Actual conditions in the various States do not correspond, however, exactly to what may seem to be theoretically desirable. In many States the board is possessed of powers which it is not as well qualified to er^ercise as the executive officer ; and in most States the board under- takes to exercise too great a supervisory power over the executive officer. The tendency, however, in the more advanced States, is undoubtedly in the direction of the increase of the power and influence of the executive oflficer. In Oklahoma, as has been noted, the so-called State Board of Health consists in reality 'merely of a single commissioner. In New York, also, the board was so far eclipsed by the executive officer that, from 1901 to 1913, the former was dispensed with entirely. It is true, a public health council has now been established in that State, but itf5 duties are confined mainly to advice and the enactment of a sanitary code for the State. It is expressly forbidden to perform any "executive, adrninistrative, or appointive duties." In Pennsylvania, also, in 1903, legislation was passed which had the eflFect of centralizing authority in the hands of the executive officer. A board was retained, but it is almost wholly advisory in character. In this connection, it should be mentioned further that in those States where the executive officer is also a member of the board and where the other members of the board are wholly or partly ex officio in character, the tendencv in such States is to centralize power in the hands of the executive officer. Other Oncers and Employees: Below the executive officer there are a number of other officials employed at the central office of the State Department of Health. In addition to the necessary clerical force and office assistants, many States employ also a number of experts to attend to special phases of public health work. ^ Among such experts are sanitary engineers to supervise the construction of public works designed to promote the public health, chemists to analyze samples of water, food and drugs, and bacteriolo- PUBLIC HEALTH ADMINISTRATION. 677 gists for work in hygienic laboratories. Provision is also made in a number of States, including Illinois, Maryland, Louisiana and Califor- nia for the employment of special attorneys, whose business it is to furnish the State board advice as to legal matters, file complaints with the State's attorneys, and assist in prosecuting offenders against the public health laws! In the majority of States, however, no special attorneys are employed, but the Attorney-General is depended upon to perform these functions, and in those States where special attorneys are employed, the appropriations are sometimes insufficient to secure an adequate amount of legal services. The executive officisr and the other employees attached to the central office do not constitute the whole personnel of the State depart- ment of health. The department must further be^ supplied with antennae which reach into every corner of the State in order that it may adequately safeguard the health of the people of the whole State. With the object of maintaining an efficient field force in all parts of the State, a number of the more advanced States have been divided into sanitary districts, with a State inspector in charge of State public health work in each district. In New York the Commissioner of Health is required to divide the whole State, except cities of the first class, into twenty or rnore sanitary districts, and to appoint for each district a sanitary supervisor, who must be a physician. In Pennsylvania the State health commis- sioner divides the State into ten districts and appoints a health officer for each district at an annual salary of $2,500. Massachusetts is divided into a number of health districts which may be, in the discretion, of the State Board of Health, as high as fifteen. In each district the State board appoints, with the consent of the Governor and Council, a State inspector of health, who must be "a practical and discreet person, learned in the science of medicine and hygiene." Though appointed for five year terms, the State inspectors are liable to removal from office at any time by the State board. The inspectors perform impor- tant functions in enforcing public health laws regarding the abatement of nuisances, the sanitation of tenement houses, etc., and in acting as intermediaries between the State Board of Health and the local health authorities. From 1907 to 1912 the Massachusetts inspectors also performed important functions in safeguarding the health of employees in indus- trial establishments ; but, by an Act of 1912, these functions were trans- ferred to the newly created State Boara ot Labor and Industries. In New York the State health commissioner is authorized to employ public health nurses and assign them from time to time to the sanitary dis- tricts to aid in the control of communicable diseases. Many other States also have a number of inspectors in the field, assigned to special work in any part of the State where they may be needed. Usually, however, appropriations are insufficient to maintain an adequate field force. Divisions and Bureaus: The tendency is towards a more elaborate interior organization oi the State department of health. Recent advances in preventive medi- \ 678 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATION. 679 h cine are opening up new lines of public health work. This fact, com- bined with increased appropriations, greater general interest in public health matters and the growing need for greater State control over such matters, has led to an extension of the work of the State depart- ment into new fieUls, and the resulting necessity of organizing the work into divisions and bureaus. The recent New York law creates in the State department the following divisions: 1. Division of Administration 2. Division of Sanitary Engineering 3. Division of Laboratories and Research 4. Division of Communicable Diseases 5. Division of Vital Statistics 6. Division of Publicity and Education 7. Division of Child Hygiene 8. Division of Public Health Nursing 9. Division of Tuberculosis Each division is under the managenient of a director appointed by the State commissioner. The commissioner may also create other divi- sions from time to time. Similarly, the Pennsylvania State department is organized into a bureau of vital statistics, and divisions of sanitary engineering, labora- tories, biological products, tuberculosis sanitoria and dispensaries. In addition, there are divisions for the distribution of supplies, and for purchasing, auditing and accounting. Each of these divisions is in charge of a chief, and some of them are still further subdivided. Like- wise, in Maryland, there are the following bureaus : conununicable dis- eases, vital statistics, sanitary engineering, bacteriology, and chemistry, and a division of food and drugs. POWERS 'and DUTIES. Methods of Classification: The powers and duties of State boards of health may be classified in different ways, according to several different standards of classifica- tion. In the first place, they may be classified as indirect or supervisory and direct. Until the middle of the nineteenth century, public health administration was largely decentralized. All measures connected with public health administration were carried out by local authorities, either general or special, and at present many important powers and duties of this character are still in the hands of the local authorities. The gradual increase in the powers of the State boards has been brought about in part by the supervision of the State boards over the per- formance by local authorities of the duties imposed upon them. Thus with regard to the abatement of nuisances of a local character, the local authorities are usually competent to act, subject to the supervision of the State board. Indirect administration by the State board may, however, develop into direct, as where, if the local authority fails to act or performs its duties in a negligent manner, the State board \y^^y step in and carry out directly measures for the promotion of the piihhc health. On the other hand, where the function is one which local authorities are not competent to perform, the State board may act directly in the first place, without waiting for local action. Another classification of the powers and duties of State boards of health may be made in accordance with the method or character of the action taken into legislative, judicial and executive or administra- tive Of these three classes of powers, the first and second are more eenerally lodged in the board itself, while the third is usually placed hi the hands of the executive officer of the board. The legislative power consists in the adoption of sanitary regulations. Such regula- tions must not, of course, be in conflict with the Constitution or stat- utes. Even where there is no conflict, the exercise of this power by administrative bodies has sometimes been declared unconstitutional by the courts on the grounds that it is a delegation of legislative power and violates the principle of separation of powers. These decisions, however, have not seemingly checked the practice of legislatures to confer such powers upon boards of health. In some States practically all public health regulations are issued by the boards, but there is apparently a tendency toward the embodiment in statutes of most of the regulations issued by the boards. The power of issuing regula- tions, where it exists, may be either special or general, that is, they may relate to certain special matters, such as quarantine or the pro- tection of water supplies, or they may relate to the general protection of the public health. The public health council of New York State, for example, is empowered, ''by the affirmative vote of a majority of its members to establish and from time to time amend a sanitary code." This code ''may deal with any matter affecting the security of life or health or the preservation and improvement of public health in the State of New York." Powers somewhat analogous to those exercised by the regular courts also sometimes devolve upon State boards. The determination as to whether particular conditions constitute a prohibited menace to the public health, or the interpretation of a given provision of the sanitary code are matters which may come for settlement either before the State board or its executive officer. In arriving at a decision in such matters the board may issue warrants of arrest, summon wit- nesses, take testimony under oath, and perform other judicial func- tions. The New York Act provides that the "actions, proceedings and authority of the State health department in enforcing the provisions of the public health law and sanitary code, applying them to specific cases, shall at all times be regarded as in their nature judicial, and shall be treated as prima fade just and legal." The bulk of the powers of State departments of health are, how- ever, of an executive or administrative character. They may be called the residuary powers, including all powers that cannot be classed as either legislative or judicial. They embrace most of the important special measures taken for the promotion of the public health, such as the establishment of quarantine, the abatement of nuisances and the inspection of public buildings and other places liable to breed disease. A third method of classifying the powers and duties of State health departments may be made in accordance with the nature of the \ 680 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINIFTRATION. 681 power exercised or the character of the objects affected by such exer- cise rather than with the method of its exercise. From this standpoint the powers and duties of the State health authorities may be classed as relating to: (1) the collection and dissemination of information on public health matters, (2) the examination and licensing of certain classes of practitioners, and (3) taking measures directly for the pre- vention or eradication of disease. Imformation and Research: The collection and dissemination of information was originally the primary and almost sole function for which State boards of health were established. In order that the information given out might be as authentic and accurate as possible it was necessary that vital statistics should be collected and that various works of investigation and research should be carried on. The object of collecting vital statistics has been described as being "to give warning of the undue increase of disease or death that is presumed to be due to preventable cause, and also to indicate the localities in which sanitary effort is most desirable and most likely to be of use." This object cannot be attained without full and accurate statistics, uniform with respect to different localities and running con- tinuously over a considerable period of time. In order that such statis- tics may be even approximately obtained, the efforts of local authorities have proved almost invariably ineffective, and State action is therefore necessary. In some respects even national control seems preferable. In view of the ineft'ectiveness of local action, practically all the States have established some degree of central control. This has taken two main forms. The earlier and more usual form has been the collection of such statistics through the co-operation of State with local officials. The executive officer of the State board is usually designated State Registrar of Vital Statistics, though sometimes a special State officer is appointed for that purpose, while the local health officers are ex officio local registrars of vital statistics. Physicians, midwives, and under- takers are required to report cases to the local registrars, who transmit them to the State registrar. In order to secure unifomity, the forms upon which reports are to be made are usually prescribed by the State board. Local registrars who neglect properly to perform their duties are sometimes, as in Maryland, subject to removal by the State Regis- trar. The second form of control by the State over the collection of vital statistics is more centralized. In this form, which may be found in Pennsylvania, the services of locally selected officers are dispensed with, and the so-called local registrars are appointed by the central authority. Centralized control has undoubtedly had the effect of increas- ing the fullness, accuracy and uniformity of the vital statistics collected, but the tendency has not yet gone far enough, so that as yet many States are not included in the registration area of the United States Census Bureau. Another important class of information collected is that regarding the causes of diseases and the means of their prevention. For this purpose, various States have established chemical and bacteriological laboratories. The work of the Massachusetts State Board along these lines has been especially noteworthy. Laboratories are also established for the preparation for free distribution of diphtheria antitoxin, small- pox and anti-typhoid vaccine and other prophylactic agents. Since the successful application of sanitary measures depends in large degree upon the cooperation of the mass of the people, the educa- tion of the people in health matters should be one of the essential objects of the activity of State boards of health. The importance of this was recognized in New York, as has been seen, through the creation in the State department of health of a special division of publicity and educa- tion. In only a few States are the appropriations sufficiently large to enable the State department of health to reach the people in an ade- quate manner. In most States, however, the amount of money spent on publications might be used to better advantage than at present. ^ In addition to the annual or biennial reports to the Governor or legisla- ture, many State departments of health also issue bulletins at stated intervals, which are distributed among local health officers, physicians, and others who may apply for them. Too frequently they are composed for the most part of undigested statistics, which even health officers cannot find very serviceable. They fail utterly in even reaching the general public. Some of the more advanced States, however, have begun to issue bulletins of a popular character and have endeavored to distribute them among the people as widely as the funds at their dis- posal may permit. The difficulty is that the very people who are most in need of the information contained in such bulletins are the hardest to reach and the least likely to avail themselves voluntarily of these ' means of education. In order to meet this difficulty, beginnings have been made in some States towards educating school children in public health matters by definite instruction and placing suitable literature in their hands. Older persons as well are being reached by public health exhibits and widespread newspaper campaigns. ExamiAincr and Licensing Functions: The second division of powers and duties of State boards of health is that connected with the examination and licensing of various classes of practitioners. Among such practitioners whose work has more or less to do with the public health are physicians, osteopaths, dentists, optometrists, pharmacists, nurses, embalmers, barbers, midwives, and plumbers. In some States the examination and licensing of these practitioners are entrusted entirely to special State examining boards which are usually quite separate and distinct from the State P>oard of Health. These special boards are in New York appointed by the State Board of Regents, but in other States are usually appointed by the Governor and Senate. The State Board of Health is in a number of States charged with the examination and admission of persons to some professions. In Illinois, for example, the State Board of Health examines and licenses physicians, midwives, and embalmers, while the last named class of practitioners are examined by the State Board of Wealth in Wisconsin, Michigan, Minnesota and a few other States. In about a dozen States, the State Board of Health is authorized to \ I' I v.. 682 EFFICIENCY AND ECONOMY COMMITTEE. examine and license persons desiring to practice medicine, while in a number of States the State Board of Health has similar authority with respect to one or two others of the classes of practitioners mentioned. The functions of examining and licensing frequently involve the exercise of other powers, such as that of setting up standards of in- struction and reputability for schools and colleges which undertake to prepare persons for entrance into the professions. Furthermore, the power to examine and license sometimes carries with it the function of regulating the practice of the profession in question. Regulations issued for this purpose by special State boards, such as the Barbers Examining Board, are occasionally subject to approval by the State Board of Health. Licenses to practice, granted either by the State Board of Health or by the special examining boards, are usually liable to be revoked for cause by the granting authority, subject to an appeal to the courts from the decision of the board. It would seem that the functions of examining and licensing are not sufficiently closely related to the ordinary work of the State Board of Health to include them within its active functions. The exercise of these functions with respect to professions closely related to the public health might be better placed in the hands of a single examining board ; or, as is now the practice in some States, the examinations might be conducted by a special board or boards, while the licenses are issued by the State Health Commissioner.^ The multiplication of independent boards for each class of practitioners or trade should be discouraged. Prevention of Disease : The third division of powers and duties of State departments of health is that of taking measures directly for the prevention or eradi- cation of disease, especially in epidemic form, and, in general, for the promotion of the public health. In as far as these objects are secured, the effect is brought about through the control of communicable dis- eases. With respect to any particular State or community, such dis- eases may arise in two ways : either through introduction frdm other States or communities, or through the existence of unsanitary condi- tions within the State or community. Hence, in order to control com- municable diseases, action must be taken both to prevent their intro- duction from outside and to eradicate disease breeding conditions within. To secure the first of these objects the most usual measure is the establishment of quarantine. This was earliest developed, of course, in the seaboard States, but in some of these States, the control of mari- time quarantine has now been taken over by the United States Gov- ernment. The power of establishing quarantine was at first freely exercised by local units within a State against each other, but the abuses which arose from this practice have brought about an increasing de- gree of State control, either through direct administration by State officers or through effective State supervision over local quarantine authorities. The second method of controlling communicable diseases, viz.. through the suppression of unsanitary conditions within the State has 5 This plan is similar to that recommended by the Minnesota Commission on Efficiency and Economy. PUBLIC HEALTH ADMINISTRATION. 683 now become the more important of the two and now requires the greater part of the energy of State health departments. Among the measures taken with this object in view are many which have already been mentioned and also a number of others such as the abatement of nuisances, the inspection of food, drugs, milk and water supplies, and supervision of sanitary conditipns in hotels, tenements, lodging houses, slaughter houses and other places liable to breed disease. Here, also, many of these measures were formerly left for the most part to be attended to, if at all, by the local authorities, but an increasing degree of State control is manifest. Some of these functions, such as the control of milk and water supplies, are of such a character that local authorities do not have sufficient jurisdiction to exercise them ade- quately, and in such cases, the tendency towards State control is even more evident. Some of these matters are attended to, not by the State Board of Health, but by some special State agency, such as the Illinois State Water Survey and the Iowa State Board of Dairy Commis- sioners. In some States the State Board of Health is authorized to inspect factories, but in most States this function is placed in the hands of a special State officer or department. The division of authority hetween the State Board of Health and such special agencies is not always clearly defined, and conflicts sometimes arise between them, as well as between the State and local authorities. For the performance of these important functions, numerous inspectors are of course nec- essary, but in most States the funds at the disposal of the State health authorities are not sufficient to maintain a sufficient force of inspectors in the field. RELATIONS BETWEEN STATE AND LOCAL AUTHORITIES. Previous to the middle of the nineteenth century, public health administration was considered a matter for the most part properly left to the control of the local authorities. So long as this system proved fairlv satisfactorv there was no considerable demand for State action, except, perhaps, in the matter of maritime quarantine. The growth of population in congested centers, however, combined with the ineffi- ciency of local authorities in meeting the needs of new conditions seemed to call for some form of centralized control. This was espe- cially true during the outbreak of epidemics, which occasionally brought about some form of State control. State action under these circum- s^tances was, however, naturally spasmodic in character. When the nanger became less apparent, the laxness of local autonomy ensued, ^iradually, however, the realization of the need for continuous control of public health regulations by the authority best qualified to exercise J'^ch control in an efficient manner has led to various forms of State interference. Legislative interference in matters of local concern has pftcn been very extensive, but State administrative supervision is tend- 'n.q" gradually to displace direct legislative interference. - ^The first form of central administrative control was based on Willis idea of the centralization of information. Research and investi- sational work of a scientific character, when conducted on a consider- able scale, can usually be better carried on by the central authorities ? li^ ■'■ \ 684 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATION. 685 II P. than by the local units of government. When thus carried on, the results of such work can also be made available more economically to scattered health officers in the localities! We find, therefore, that the first State boards of health were originally established primarily for the purpose of collecting the best available information on health matters and of acting as a center for the distribution to the localities of advice based upon such information. For example, the Massachusetts and New York State Boards of Health, when first established were, with regard to local authorities, pu'rely advisory bodies. Bringing pressure to bear upon local bodies by means of publicly given advice is, in fact, even yet an important function and in some cases the most important function of many State boards with regard to the local bodies. In most instances, the advice thus given is not directly enforceable, and undoubtedly often ignored by the local authorities, but it nevertheless has considerable influence. The information and advice issued consist in giving instructions to local health officers as to their duties, distribut- ing compilations of public health laws, and recommending model sani- tary ordinances and regulations for adoption by local bodies. In addition to the diffusion of information and advice by the State authorities other ways in which the State and local authorities come into relation with each other may be summarized as follows : Reports by local officers. State aid to local bodies. Division of State into districts and appointment by State authority of district inspectors of local health matters. Appointment of local health officers. Removal of local health officers. Approval by State authorities necessary to^ validate local action or reversal of local action by State authorities. Assumption of local health administration by State authorities upon failure of local authorities to act. Issuance by State authorities of rules and regulations controlling local authorities. . Decision by State authorities of questions of disputed jurisdiction between local authorities. Requirement for the holding of State-wide conferences by local health officers. Examples of these various relations may be briefly indicated.® In addition to the reports of vital statistics, which, as has been shown, must be sent by the local health officers to the State Registrar of Vital Statistics, it is also required in a number of States that the State Board of Health be notified immediately of the appointment, name and address of local health officers. In the large majority of States, periodical or special reports regarding local health conditions are also required to be made by the local health authorities to the State Board of Health. The method very much in vogue in England of granting financial aid by the State to local units of government in return for a measure of central control has not yet developed to any considerable extent m this country. In Minnesota State aid has been granted to at least one locality by the State Board of Health, in return for the privilege ot nominating its health officer. 6 Kerr and Moll ; Organization, Powers and Duties of Health Authorities, page 48. The recent development in some of the more advanced States, such as Massachusetts, New York and Pennsylvania, of dividing the State into sanitary districts and appointing State health inspectors in such districts has naturally had the effect of strengthening the central control over local health authorities. The State inspectors are paid sufficiently large salaries so that they can afford to devote their whole time to public health work, which is not the case with most local health officers. The local unit of health administration is usually too small to enable it financially to employ an expert, full time health officer, and the State sanitary inspectors therefore are valuable in supplement- ing the efforts of the local officers and in exercising an efficient super- vision over them. A more radical step than the appointment of State inspectors for sanitary districts is the appointment by central authority of the local health officers themselves. In Vermont, the State Board appoints all of the local health officers. In Florida, where there is little purely local sanitary organization, local health matters are attended to by centrally appointed agents. In a number of States, a majority of the members of local boards of health are subject to appointment by the State board. A qualified control over local appointments is sometimes found. In New Jersey, the State Board of Health establishes qualifications of eligibility and conditions for appointment of health officers by local boards. In more than a dozen States the State board may appoint local health officers upon the failure of the proper authorities to do so. The power of removal of local health officers is vested in the State board in more than a dozen States. The power is usually hedged about, however, with limitations. Some cause of removal must gener- ally be specified, and, in some cases, the power of the State board is Hniited to the filing of charges against local officers, A power tanta- mount to that of removal is found in Alabama, where the State Medical Association may revoke for cause the charter of a county medical society (which acts as a county board of health). The regulations adopted by local boards and officers must, in a number of States, including Connecticut ( Washington and Ohio in the case of villages), be approved by the State board before going into eftect. In general any regulations made by local boards, even where not subject expHcitly to approval by the State board must not conflict with those of the State Board. In some States, the approval of the State board is necessary to validate the action of the local authorities with regard to special matters, such as the adoption of methods of sewage disposal. We find also that in a few States, the power of the State board extends beyond the auxiliary function of approving regula- tions of the local authorities, and includes the power of modifying or reversing such regulations. The power of the State Board of Health ^o prescribe uniform blanks for reporting vital statistics is another form of local action subject to central approval, the only difference being that indication as to what the central authority will approve is in this case made before local action takes place. The demand in many localities for home rule even in public health 'Hatters is often strong enough to prevent the assumption by the State h\ \ 686 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC HEALTH ADMINISTRATION. 687 ^'i ■ IV , ! m of direct coercive authority over the local authorities. But the lack of central control frequently leads to such laxness on the part of the local authorities as to constitute a serious menace to the maintenance of the public health. In such instances the demands for home rule on the one hand and for State control on the other are, in many States, harmonized by allowing the local authorities to act unmolested so long as they perform their duties in an efficient manner, but providing for the assumption of such duties by State authorities in case the local bodies fail to perform them or perform them in an inefficient manner. In more than a dozen States, if local health officers are not appointed or neglect to perform their duties when appointed, the State board may proceed to exercise the necessary functions. The New York law, for example, provides that ''if any local board of health shall fail to appoint a health officer, the State Commissioner of Health may, in such municipality, exercise the powers of a health officer thereof." In Illinois, whenever local boards of health or local authorities fail to enforce efficient measures for the suppression of contagious dis- eases, the State Board of Health may take such measures as seem necessary, and when local health authorities have established quaran- tine, the State Board may modify or relax it, and, on the other hand, where the local authorities fail to establish quarantine, the State Board may do so. In Illinois, and several other States, the State Board may enforce its own rules in the localities when the local boards fail to do so. When the State Board of Health finds occasion, through the lax- ness of local authorities, to take charge of public health administration in the localities, it is generally provided that the expenses incurred by the State board in so doing shall be a charge upon the locality. A peculiar provision is found in Maryland, where it is provided that if the State Board of Health has reason to doubt the accuracy of the reports of any local registrar, it may take over the work of the local registrar for a period of three months. If, at the expiration of that time, the * registration exceed by ten per cent the registration by the local registrar during corresponding months, then the expenses incurred become a charge upon the locality ; otherwise they are borne by the State. In these various ways public health administration in the localities has been brought under the administrative supervision of State authori- ties. The increase of central supervision has generally resulted in increased efficiency of public health administration, and has redounded to the advantage both of the localities and of the State as a whole. In Massachusetts, ''while the powers of the State Board have been enormously increased, it has not been at the expense of the importance of the local boards. The work of the State Board has resulted in increased local activity ; separate boards of health have been established where none previously existed, and inactive boards have become more efficient."^ In New York there were "in 1880 less than fifty local boards of health in the entire State and they were inactive and ineffi- cient. Within two years, as a result of the work of the State Board of Health a thousand local boards had been organized."^ 7 R. H. Whitten, Public Administration in Massachusetts, page 73. 8 J. A. Fairlie, The Centralization of Administration in New York State, page 141- STATE HEALTH ADMINISTRATION IN NEW YORK AND WISCONSIN. ^Vw York: The administration of public health in New York was reorganized as a result of the report of Governor Sulzer's commission on the sub- ject, appointed early in 1913, and a new comprehensive law on the subject was enacted as a result of the report of the commission, which went into effect on January 1, 1914. A public health council is created, consisting of the commissioner of health and six members appointed by the Governor, of whom at least three shall be physicians and one a sanitary expert. The council has no executive, administrative, or appointive powers but may enact and from time to time amend a sanitary code to apply to the whole State, with the exception of New York City. The Department of Health is divided in ten divisions or bureaus, each in charge of a director. These bureaus are : (1) administration, (2) sanitary engineer- ing, (3) laboratories and research, (4) communicable diseases, (5) vital statistics, (6) publicity and education, (7) child hygiene, (8) public health mirsing, and (9) tuberculosis. The Commissioner of Health is charged with the enforcement of the public health law and the sanitary code, and exercises general super- vision over local health authorities. He is further authorized to divide the State from time to time into twenty or more sanitary districts, and to appoint for each district a sanitary inspector or supervisor, who must be a physician. These sanitary supervisors are charged with the duties of conducting annual sanitary surveys of their districts, organiz- ing district conferences of health officers, adjusting questions of juris- diction arising between local health officers, studying causes of excessive mortality from any disease, promoting the registration of births and deaths, and enforcing the sanitary code. The Commissioner of Health is given authority to employ public health nurses and to assign them from time to time to sanitary districts to assist the district supervisors and local health officers in the control of communicable diseases. He is also directed to submit to city authori- ties recommendations for the establishment of hospitals for contagious diseases, and to inspect all such hospitals. If any town board or village board of trustees fails to appoint a health officer, the State Commis- sioner of Health may exercise the powers of a health officer in that locality, the expense incurred by the commissioner being a charge upon the locality. The commissioner is further given power to investigate the enforcement of the tenement house law in all cities of the State. The Tuberculosis Registration Law passed permits the reporting of cases of tuberculosis by telephone or in person, as well as in writing, and the form for the report is simplified so as to, make the reporting of such cases easier. Any physician may now report to the local health officer the name and address of any person coming under his observa- tions who appears to be suffering from tuberculosis. The health officer 's required to take such steps in the handling of such cases as are required by the sanitary code. 'tim \ ii 688 EFFICIENCY AND ECONOMY COMMITTEE. Wisconsin: The State agencies entrusted with the administration of public health in Wisconsin are as follows: State Board of Health Committee of Examiners of Nurses State Board of Pharmacy State Dairy and Food Commission State Board of Dental Examiners State Board of Medical Examiners State Board of Barbers Examiners State Tuberculosis Sanatorium The State Board of Health consists of seven members, appointed for seven year terms by the Governor with the consent of the Senate. The board elects a secretary, either from their own number or other- wise, and fixes his salary. The secretary is the executive officer of the board, and supervises the collection and study of vital statistics. The board also appoints a State sanitary inspector, who acts under the direction of the board in investigating nuisances, etc. The board is charged generally with the protection of the public health and, more specifically, has charge of the matters of sewage disposal and water supply contamination, and publishes information and issues and enforces rules to prevent blindness of infants. The State Board of Health also licenses embalmers, and holds examinations of applicants for eni- balmers' licenses. The board has the power to establish quarantine and take precautions against the spread of communicable diseases. The Committee of Examiners of Nurses is composed of five graduate nurses, who are appointed by the State Board of Health to serve for three year terms. They must be engaged in the active work of nursing and must be graduates of three years' standing from a reputable training school. The committee holds examinations of appli- cants for registration as nurses, but all written questions for the examination of nurses must be approved by the executive committee of the State Board of Health and the license to practice nursing is issued by the secretary of the State Board of Health and countersigned by president and secretary of the Committee of Nurse examiners. The State Board of Health may revoke the license of any nurse guilty oi unprofessional or dishonorable conduct, but only after written notice of the charges and a hearing. The State Board of Pharmacy is composed of five members, serv- ing for five year terms. The members must be resident pharmacists, actively engaged in the practice of pharmacy at the time of their appointment. The Wisconsin Pharmaceutical Association annually elects three pharmacists, whose election shall be certified to the Gov- ernor by the president and secretary of the association, from which number or from the persons previously so elected and certified the Governor shall fill any Vacancy in the Board of Pharmacy, whether occurring by the expiration of a term or otherwise. The State Board of Pharmacy examines applicants for certificates as registered pharmacists and grants certificates to persons fulfilling PUBLIC HEALTH ADMINISTRATION. 689 the requirements. It also prosecutes persons guilty of violation of the pure drugs Act, and institutes actions for the violation of the law regulating the sale of poisons. It is also the duty of the district attor- ney of the county where any such violation may occur to prosecute persons guilty thereof upon receiving notice from the board or from any other source. The State Dairy and Food Commissioner is appointed by the Governor, with the consent of the Senate, for a two year term. The commissioner, with the advice and consent of the Governor, appoints a secretary, an assistant chemist, a cheese factory inspector, dairy and food inspector, and a creamery, dairy and food commissioner, who assist in the enforcement of the dairy and food law. The State Board of Dental Examiners is composed of five prac- ticing dentists at least three of whom shall be members of the Wis- consfn State Dental Society. They are appointed by the Governor for five year terms and may be selected by the Governor from among such persons as may be recommended to him therefor by the Wisconsin State Dental Society. No person is eligible to appointment on the board who is connected with or interested in any dental college or dental department of any institution of learning. The board examines and licenses persons to practice dentistry in the State. The State Board of Medical Examiners consists of eight members appointed by the Governor. Such -appointments shall be made from separate lists presented to him every second year, one list of ten names presented by the Wisconsin State Medical Society, one list of ten names presented by the State Homeopathic Medical Society, one list of ten names presented by the State Eclectic Medical Society, and one list of five names presented by the Wisconsin State Osteopathic Associa- tion. Three members of the board shall be allopathic, two homeo- pathic, two eclectic and one osteopathic. No person connected with or interested in any medical school or college is eligible to membership on the board. The board is empowered to establish standards of admis- sion to the medical profession, to grant licenses to practice and to 696 EFFICIENCY AND ECONOMY COMMITTEE. can be carried out without difficulty and would be quite acceptable to the Board. * Under existing conditions, public health administration in Illinois has lagged twenty years behind the times. With such an organization as that outlined in the accompanying plan, all of the constantly increas- ing sanitary and public health problems of the State can be successfully met by a single department. The plan is sufficiently elastic that it may be readily adjusted to meet the requirements of many years to come. Several essential factors have been kept constantly in mind in the preparation of this plan. Increased efficiency has been the chief aim, and it is believed that this may be attained with a like increase in economy of operation. A studied effort has been made to develop the plan with as little change in the existing laws as possible, and with the minimum of disturbance of the various State departments now in active operation. \ I i A REPORT ' !'■ ON SUPERVISION OF CORPORATIONS AND RELATED BUSINESS iiHu^NIWi ui BY MAURICE H. ROBINSON, PH. D. PROFESSOR OF INDUSTRY AND TRANSPORTATION UNIVERSITY OF ILLINOIS N'iH I! r ii ■'• •• r I Ik ■ ! ■■■'! i'l CONTENTS Page INTRODUCTION 701-703 I. SUPERVISION BY THE SECRETARY OF STATE 704-716 Historical Summary 704 Supervision under the Present Law 705 The Certification of Domestic Corporations 705 The Admission of Foreign Corporations 709 Supervision of Corporations after Incorporation 711 Annual Reports 711 Anti-trust Affidavits . 713 Interrogatories 714 Financial Summary 715 II. INSURANCE DEPARTMENT 717-727 From 1885 to 1893 .717 Supplementary Legislation T^ Supervision by Insurance Superintendent 719 New Companies 720 Companies from other jurisdictions 720 Annual Reports 721 Examinations 721 Publications 721 Official Staff ; 723 Financial Summary 723 State Fire Marshal 725 Financial Statement 726 Proposed Building Commissioner 726 III. SUPERVISION BY THE AUDITOR OF PUBLIC ACCOUNTS 728-734 The Regulation of Banks 728 Incorporation 728 Examinations 729 Trust Companies 730 Examinations and Reports 731 Pawners* Societies and Wage Loan Corporations 731 Building and Loan Associations 731 Incorporation 732 Annual Report 732 Examinations 732 Custodian 732 Foreign Building and Loan Associations 733 Title Guarantee Companies 733 Financial Summary 733 I > I i, i i !.! \ IV. STATE PUBLIC UTILITIES COMMISSION 735-744 Introduction -^„ Constitution of 1870 .....[[,., 73c Railroad and Warehouse Commission y^r Local Utilities before 1913 7-? Public Utilities Law of 1913 *.'.*. yZ Public Utilities Defined .*•.....'.'.*.*.*.*.'.*.' .*.\\\'.\\\\** 737 Incorporation, franchises and licenses .'.*.'!!!!!!!!! 737 Reports and Accounts 730 Capitalization and Intercorporate Relations .*.*!.'.'.' !!!.*738 Control over rates and service ' " 739 Methods of Procedure 730 Appeals and Penalties [ y^ Staff and Organization y^ Grain inspection 7^2 V. CORPORATION COMMISSIONS IN OTHER STATES 745-745 Virginia Corporation Commission 745 North Carolina Corporation Commission '.!.!*.!*.!*.*.'.*. .746 VI. SUMMARY AND RECOMMENDATIONS 747-752 Recommendations 747 it^ •i^ il STATE SUPERVISION OF CORPORATIONS By Professor Maurice H. Robinson, University of Illinois. INTRODUCTION. Business corporations and businesses often conducted by corpora- tions are under the jurisdiction of four separate State officials, namely, the Secretary of State, the Auditor of Public Accounts, the Insurance Superintendent, and the State Public Utilities Commission. The Secretary of State has general supervision over the incor- poration of all corporations not otherwise provided for. His authority is contained in the general law and a series of supplementary laws relating to special classes of corporations. (a) Corporations under the general law : The general law provides for the incorporation of two classes based upon whether the corporations formed are for pecuniary profit or not. (1) Corporations for pecuniary profit: Under this law all corporations that issue stock and divide profits in the form of dividends are included except banking, insurance, real estate brokerage, the operation of railroads and the business of loan- ing money. In this class are included horse and dummy railroads and organizations for the purchase and sale of real estate for burial pur- poses only, title guarantee companies and trust companies. The gen- eral provision is that they must be formed for some lawful purpose. (2) Corporations not for pecuniary profit: Under this section of the Act are included all societies, associa- tions and corporations formed for any lawful purpose where the object is not to make a pecuniary profit to be divided among the members. Corporations under this section of the Act issue no capital stock and are exempted from making annual or other .reports to State officers. (b) Corporations under separate Acts: ( 1 ) Cemetery associations : Any six or more persons may organ- ize as a cemetery association by filing with the Secretary of State a certificate of organization. Such organizations are required to make a financial report to the county court once in every three years. (2) Co-operative associations are formed in the same general way as corporations for pecuniary profit. No individual may subscribe to more than one share and no one except subscribers may work for the association. No annual or other reports are required. (3) Educational institutions and free public libraries are incor- porated by filing a statement with the Secretary of State. If the statement is found satisfactory a certificate of incorporation is issued which must be recorded in the usual way. Such corporations are > 702 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 703 ^i'''f required to make annual reports to the Governor, showing their assets and investments in detail. Changes in the organization of such cor- porations are made by filing a statement of the changes desired when the proper certificate is issued authorizing the same. Private educa- tional institutions, whether incorporated or unincorporated, make reports to the Superintendent of Public Instruction. (4) Pawners' societies and wage loan corporations are incor- porated by the Secretary of State under the general law. Such corporations report annually to the Auditor of Public Accounts. (5) Railroads are incorporated by the Secretary of State on the filmg of a statement of articles of association containing the details of the organization, including name, purpose, officers, location, capital stock, etc. If the organization is found to be in accordance with the law a certificate of incorporation is issued which is filed with the county recorder. Railroad corporations report annually to the Auditor of Public Accounts, and also to the Public Utilities Commission. The Auditor of Public Accounts has general supervision over banks and banking institutions, trust companies, title guarantee com- panies and building and loan associations; and receives reports from pawners' societies. He also receives reports from corporations and railroads for purposes of assessment. (a) Banks receive their charter from the Auditor of Public Accounts directly. The procedure follows that of the general corpor- ation law. They are required to make quarterly reports to the Auditor and are subject to periodic examinations. (b) Building and loan associations: The procedure is similar to that provided for general corporations. The authority for soliciting subscriptions must first be obtained and when the organization is com- plete a report is submitted and the certificate of complete organization issued. Foreign building and loan associations are required to obtain a license from the Auditor. They are required to make annual reports to the Auditor and are subject to periodic examinations. (c) Trust companies are incorporated by the Secretary of Stat but report regularly to the Auditor under the same general rules which apply to banking corporations. (d) Pawners' societies and wage loan corporations are incor- porated by the Secretary of State but make their reports to the Auditor of Public Accounts annually. All insurance companies, except assessment life and accident and title guarantee companies, are chartered by the Insurance Superin- tendent. Corporations for furnishing life or accident insurance on the assessment plan must submit their plan of organization, first to the Insurance Superintendent; if he approves of the plan he forwards it to the Secretary of State who then issues a certificate of incorporation. The same process is followed in making changes in the corporation. All insurance companies, except title guarantee com- panies, are supervised by the Insurance Superintendent. The State Public Utilities Commission established by an Act of 1913 is authorized and required to approve all issues of capital stock, bonds and other securities issued by public utility companies. A cor- poration desiring to operate a public utility obtains its charter from the Secretary of State, but must secure the approval of the Public Utilities Commission before issuing securities. Annual reports in the form prescribed by the Public Utilities Commission are made directly to the said commission. The work of the Public Utilities Commission in supervising the particular class of corporations under their juris- diction will be described in detail in another section of the report. The Attorney General as the legal branch of the State govern- ment may be called upon by the various State officers to give his opin- ion upon points of law involved in the incorporation and supervision of various classes of corporations. In the case of insurance corpora- tions, however, it is held that as a result of Paragraph 5 of Section 3 of the Insurance Act that the Attorney General has no direct super- vision over the legal work of the insurance department. Accordingly a direct appropriation is made to the insurance department and the insurance department has a legal department of its own. The Board of Administration has jurisdiction over the licensing, incorporation and supervision of associations for dependent, defec- tive and delinquent children. / • I p hi ;! ii )i I. SUPERVISION BY THE SECRETARY OF STATE. Historical Summary. Before the Constitution of 1848 was adopted corporations were formed by special Act of the Legislature. The Constitution of 1848, Article X, provides that corporations not possessing banking powers or privileges may be formed under general laws except in cases where in the judgment of the Assembly the objects of the corporation can- not be formed except by a special Act. The constitution also provides that the General Assembly shall encourage internal improvements by passing liberal general laws for the incorporation of companies for such purposes. The first general corporations Act in Illinois was passed in 1849.^ This Act followed the general method in vogue in other states at that time. It provided that any three or more persons desiring to form a corporation for manufacturing, agricultural, mining or mechanical purposes must file a certificate duly acknowledged in the office of the county clerk and a duplicate in the office of the Secretary of State. The certificate must contain the usual details in regard to the name of the business, amount of capital stock, term, shares, names of direc- tors and the location where its principal business was to be carried on. When the certificate was filed the persons signing the certificate and other subscribers became a body corporate with all the usual rights and privileges Immediately after filing the certificate the trustees were authorized to call in subscriptions to the capital stock. Payments for capital stock were required to be made in money, and no loan on the capital stock certificates was permitted without thereby making the directors personally liable for the debts of the corporation to the extent of such loans; and when the total amount of subscriptions was paid in, the president and a majority of the trustees were required to file with the county clerk a statement to that eflfect. Corporations under the Act of 1849 were not required to report to the Secretary of State. Instead it was provided that "each company shall annually within twenty (20) days from the first of April make a report which shall be published in a newspaper published nearest the place where the business of said company is carried on which shall state the amount of the capital stock and the proportion actually paid and the amount of existing debts." This report was required to be signed by the president and a majority of the trustees, verified under oath of the president and secretary and filed in the office of the clerk of the county. For failure to conform to this requirement the trustees were jointly and separately liable for all its debts then existing or contracted before such report was made. 'Session Lafra, 1849, p. 87. SUPERVISION OF CORPORATIONS. 705 Several additional acts supplementary to the general corporation act were passed during the period from 1849 to 1872, when the pres- ent corporation act was enacted. The important acts are as follows : An Act to authorize the formation of corporate companies, for the pur- pose of mining and transportation by a general law ; passed June 22, 1852. An Act to authorize the formation of corporations for the purpose of manufacturing, mining, mechanical or chemical businesses; passed February 18, 1857. Amendments to the above acts were passed in 1857, 1865, and 1867. The first amendment related to the collection of unpaid subscriptions and the other amendments extended the acts to permit the formation of corpora- tions for the making of beet sugar and the mining and refining of oils. In all of the additional acts and the amendments thereto the same general method of incorporation and supervision established in 1849 was maintained without any important change. Superznsion Under the Present Law. Notwithstanding the fact that the Constitution of 1848 provided that corporations must be formed under the general law, except where the purposes desired could not be obtained under such an act, the Legislature still continued to graiit special charters to corporations in considerable numbers and in connection with the legislative grant- ing of charters charges of corruption became so pronounced and so frequent and in some cases the charges were so substantially sustained that the Constitution of 1870, Article XI, provided as follows: "No corporation shall be created by special laws or its charter ex- tended, changed or amended, except for charitable, educational, penal or reformatory purposes which are to be and remain under the patronage and control of the State, but the General Assembly shall provide by general laws for the organization of all corporations here- after to be created." The Constitution also provided that all existing corporations were to cease their existence if not in operation within ten (10) days from the date that the Constitution should go into effect. It also provided for the establishment of the cumulative voting system and that no street railway company might be given authority tu operate a railway without the consent of the town wherein it was operated. Imrnediately after the adoption of the present Constitution the corporation law of the State was revised and the present method of certification and control of corporations was enacted into law. As previously stated the general office for the certification of corporations IS that of the Secretary of State. For purposes of administration there IS established in the Secretary of State's office a department of cor- porations and the department of corporations is divided into two divis- ions : The certification of domestic corporations ; Licensing of foreign corporations, the supervision of the anti- trust law through affidavits and the securing and filing of annual reports. The Certification of Domestic Corporations. Domestic corporations are divided into two classes, those for pecuniary profit and those not for pecuniary profit. The great majority I 706 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 707 ■V'i of all our corporations are included in the first class. Consequently the chief attention will be given to the work of the Secretary of State's office in their supervision. Whenever any group of persons desire to form a corporation under the general law a statement is made to the Secretary of State on a blank which is furnished by that office for the purpose of facili- tating conformity to the law. The statement must be made by at least three persons and not more than seven, stating that they desire to form a corporation unde rthe Act concerning corporations approved April 18, 1872, and all acts amendatory. The statement must include the following information: The name of the corporation; The object for which it is formed; The capital stock; The number of shares ; The location of the principal office in Illinois ; The duration of the corporation. This application is signed and acknowledged before some officer in the manner provided for the acknowledgement of deeds and then submitted to the Secretary of State. Upon its receipt it is sent to the department for the certification of domestic corporations and there examined to see whether it conforms to the law. In the exam- ination the important points are the following: Are the fees correct ? Is the corporation formed for a lawful object? If the object stated is not lawful then the application will be returned with a statement calling attention to the fact. The statement then may be revised, returned and the process of examination continued. Is the name available? In this connection attention should be called to the fact that corporations may go out of business without sending the proper information to the Secretary of State's office and thus a name which might have been available for a new corporation may not be approved by the department although the original has long been out of business. If the statement is found to be in conformity with the law the Secretary of State issues a license to the subscribers authorizing them to solicit subscriptions to the capital stock. When the subscriptions have been secured to the entire amount of the capital stock authorized a meeting of the subscribers is held ; directors are elected and the sub- scriptions are called in to the extent of at least fifty per cent. After this the commissioners make out a report containing : The subscription list. The record of the meeting. A list of the officers and a statement showing to what extent the stock has been collected and how the stock was paid for. The report is examined by the department of corporations in the Secretary of State's office and if found to be in conformity to the law a certificate is issued. The certificate must be filed in the county recorder's office and operations begun within two years or the license issued by the Secretary of State is deemed to be revoked and all pro- ceedings in connection therewith are void. It will be noticed that the Act of 1872 provided an entirely new method of procedure in the formation of corporations under the State law. Persons desiring to form such organizations must first obtain permission from the Secretary of State before they could solicit subscriptions to the capital stock. The object of this provision, which at the present time is in force in only one other state, namely. South Carolina, is to safe-guard the investor by supervising the work of the incorporators during the period of promotion. The Secretary of State is required under the law to examine the statement submitted to see : Whether it is for a lawful purpose. Whether the name is distinctive. In this connection he has authority to propound interrogatories to ascertain the true object. Although he is not specifically authorized to refuse a license to promoters who are desirous of soliciting sub- scriptions for a corporation with a lawful purpose on the face, but whose real object is a fraudulent one, the law is sufficiently broad to give the Secretary of State wide discretionar}^ powers. Under the laws of the State monopolies are prohibited; hence the Secretary of State would be exceeding his powers if he should knowingly approve of a project in the corporate form whose purpose was to form a monop- oly in the manufacture of a single line of goods. Corporations are not authorized to own shares of stock in other corporations. Consequently any project of this sort would be refused a license by the Secretary of State. Corporations for the purpose of the purchase and sale of real estate are not authorized under the Illinois law; hence the Secretary of State would refuse a license to a corporation organized for such a purpose. The provision of the law requiring a license to solicit subscrip- tions in order to safe-guard the investor is supplemented by further provisions relating to the issuance of the capital stock. After the promoters receive the license they proceed to solicit subscriptions to the capital stock to the entire amount authorized by law. When the entire amount is subscribed they call a meeting of the subscribers, organize and elect directors, and collect at least one-half of the sub- scriptions and send in a report to the Secretary of State as above outlined. The Secretary of State then makes an examination of the report to determine whether the commissioners have conformed to the law. Under the Act of 1849, capital stock must be paid for in mone^. Under the Act of 1872, capital stock may be paid for either in cash or property. If the latter method is followed the property must be appraised by the commissioners and the fair cash value of the same given in the report. The purpose of this provision of the law is evidently to secure full value for stock ; that is to prevent stock watering by the distribution of stock for overvalued property. The authority of the Secretary of State to refuse a license to corpora- tions that have issued stock for overvalued property seems never to nave been tested by the courts. It is evident from an examination of the law that the Secretary of State is not only authorized to refuse cliarters to such corporations but, moreover, he is under obligations even to refuse to issue certificates to such corporations. Nevertheless no attempts seem to have been made in the past either to prevent stock watering under the Illinois law or to test the authority of the Secre- I 708 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 709 tary of State in this particular. In other words no attempt is made to go beyond the returns and if the record is in conformity with the law on its face the certificate is issued as a matter of course. The corporation law of Illinois in the points above stated is almost unique in this country. With only slight modifications it would rank with those in England and Germany in the protection of legitimate investors. The enforcement of the law in this respect would of course add considerable to the expense. It would require a force of experts who would necessarily make direct examinations as in the case of the examinations of banks and insurance companies. The results, how- ever, of such an administration of the law in the development of sound investment and increased business prosperity would undoubted- ly more than justify the additional expense. While the law relating to the formation and certification of cor- porations is admirably adapted to protect legitimate investors, there are ways of escape for the shrewd corporation official which practically annul the evident purpose of the law. It will be noticed that the pro- visions above cited apply only to original incorporations. There are no similar safeguards for the increase of capital stock. Con- sequently any group of incorporators desirous of evading the spirit of the law will provide in the first instance for a corporation with a nominal capital of say $2,500, all of which is subscribed and one-half paid in cash. The certificate is then obtained. The corporation then applies for authority to increase the capital stock to any amount, say $10,000,000. A meeting of the stockholders is called with proper notice, the project submitted to a vote and if two-thirds of all the stock authorized votes in favor, a certificate verified by the aflFadavit of the president and secretary under the corporate seal is filed with the Secretary of State, a copy in the office of the county recorder and notice of same is published in local newspapers. The changes then are in legal eflfect. The Secretary of State apparently has no super- visory powers over the issuance of the capital stock after the corpora- tion has once been formed. The corporation now has $10,000,000 fully paid capital stock of which $9,997,500 is authorized under the amended charter and may be issued by authority of the stockholders and directors for any property necessary to the business or for services at any price. The only provision in the law which might in any way interfere is that limiting the amount of indebtedness to the amount of capital stock — capital stock in this sense meaning corporate assets — ,but even in this case the Secretary of State has no authority to interfere. Since the law provides an easy legal escape from the provisions re- lating to formation by incorporating for a small amount and after- wards increasing the capital stock, the strict enforcement of the Act during the period of promotion would have the effect of forcing cor- porations desiring to issue inflated capital stock to provide for a minimum capitalization and later take advantage of the liberal laws for the increase of the capital stock. The law should be amended by throwing the same safeguards around an increase in capital stock that are provided for original issues. Corporations not for pecuniary profit are authorized by the Secre- tary of State ; but apparently the law does not intend that he shall exercise supervisory functions over their formation except to see that they conform to the general law. As no reports are required there is no record of the organizations of this kind that are actually in existence except the record published in the annual report of the Secretary of State at the time of their authorization. The Admission of Foreign Corporations. Until 1897 there were no administrative regulations governing the admission and operation of foreign corporations in the State except an Act of 1875 authorizing foreign corporations to invest and loan money in Illinois provided it was so authorized by its charter.^ If any such corporation should acquire real estate as a result of such loans it must offer the same at auction annually and sell whenever the price realized was equal to the claim held by the said corporation. Administrative control of foreign corporations dates from May 26, 1897, when the first Act governing foreign corporations in Illinois was passed. The Act of 1897 required foreign corporations to obtain a license from the Secretary of State as a prerequisite to doing busi- ness in Illinois. Corporations desiring to do business in the State were required to file an application with the Secretary of State stating : The kind of business ; The amount of capital stock; What other states the corporation operates in ; The proportion of capital stock represented in Illinois by its property located in this State and its business transacted herein; Amount paid on its capital stock; The property and assets and the value thereof that will be employed in Illinois ; The disposition of capital stock subscribed and not paid for; Names and residences of all its stock holders; The names of officers and directors ; Principal office in Illinois; Nanie of its attorney in fact who will accept services for the corporation in all suits brought against the corporation in this State. The Secretary of State is authorized to prescribe the form of the application and propound such interrogatories in regard to the character of the business, etc., as he deems necessary. This application together with a certified copy of the corporate charter and the answers to the interrogatories, if any, is filed in the of- fice of the Secretary of State. The Secretary of State then examines the papers and if acceptable he issues a certified copy of all the papers as a certificate of authority to do business in this State. Foreign corporations thus admitted may not, however, exercise any powers not given to domestic corporations. As a license fee such corporations are required to pay to the Secretary of State for the use of the State such fees as are exacted of domestic corporations, upon the proportion of stock represented in Alhnois. 'Hurd's Revised Statutes, 1913. p. 585 \ M i ' 10 EFFICIENCY AND ECONOMY COMMITTEE. This Act governing the admission of foreign corporations into the State of Illinois has a double purpose: To secure a record of all foreign corporations doing business in the State and the name of the proper officer to serve process upon in case of violation of the State law. To collect from all foreign corporations the same franchise fees as are assessed upon domestic corporations. In. neither of these two Acts is the regulation of foreign cor- porations entirely satisfactory. There seems to be no adequate method of determining whether all foreign corporations actually doing busi- ness in the State tile applications and secure licenses as provided by law ; and of those corporations that do apply, the process of determin- ing the amount of capital stock upon which the franchise tax is to be paid is untrustworthy and inefficient. The law is partly at fault for this difficulty. It states that the fee shall be paid upon the proportion of capital stock represented by the corporation's property and business in the State. It is of course evi- dent that a foreign corporation may have a small investment and a ' large business or a large investment and a small business in the State, depending partly upon the meaning given to the word "business" and partly upon the meaning given to the nature of the particular business actually carried on. The word "business" may mean either the value of goods manufactured or it may mean the total gross sales or the net revenue or some variation of either one of these items. The prop- erty invested in this State is small with relation to the sales where office space is rented or leased and sales are made on commission or where goods are bought outright and the period of turn-over is short. The Secretary of State has attempted to solve this problem of determining the proportion of stock represented in the State by a method that aims to combine the two criteria, namely business and property, by the following method : The sum of the property plus the business in Illinois is used as a nifmerator and the sum of the same items in all states is used as a denominator. The reduction of this fraction to a per cent gives the proportion of the capital stock represented in this State. Thus, a company incorporated under the New Jersey law with $250,000 capital stock invests $5,000 in Illinois and does a business of $75,000, pre- sumably in gross sales from its Illinois business. Its entire property- is valued at $10,000 and its total business at $150,000, presumably again gross sales. Thtn $5,000 plus $75,000 divided by $10,000 plus $150,000 equals one-half or fifty per cent. Fifty per cent of $250,000 equals $125,000, the amount upon which the fee must be paid. It is evident from an examination of this method that it must lead, in many cases, to gross absurdities and in a number of cases it is not a fair criterion of the amount of capital stock upon which a foreign corporation should pay a franchise tax for the privilege of doing business within this State. SUPERVISION OF CORPORATIONS. SUPERVISION OF CORPORATIONS AFTER INCORPORATION. 711 After incorporation, State supervision over corporations chartered under the general law, where the supervision is under the Secretary of State, is effected by means of annual reports, anti-trust affidavits and interrogatories. Annual Reports. The general law governing annual reports was passed in 1901. It provides that "every incorporated company other than railroad, bank- ing, building and loan and insurance companies, religious corporations and corporations not organized for pecuniary profit existing by virtue of any general or special law or hereafter organized by virtue of any law of this State shall annually report to the Secretary of State between the first day of February and the first day of March on the following points : The location of its principal office; The names of its officers ; The expiration of their terms of office ; The kind of business engaged in, if any; Whether it is pursuing an active business under its charter. Similar reports are required of foreign corporations admitted to do business in this State (under section 3 of the Act concerning foreign corporations). The Secretary of State in conformity to the statutes sends to each corporation liable under the Act on or before January 15 in each year a blank form properly arranged for collecting the required information. This blank is accompanied by a notice calling attention to the statute and giving the necessary information in regard to the penalties for non-compliance. Where for any reason the records of the Secretary of State do not disclose the street and number of the corporations located in the larger cities, or their address at all, without reference to location, notice of such report may be given by advertising in certain newspapers specified in the law. The reports received in answer to the above inquiry are filed and preserved in the office indefinitely. On or after July 1, annually, a certified list of those corporations that have complied with the law is arranged in printed form and sent to each recorder of deeds in the several counties of the State, and to a certain extent are distributed to interested parties upon request. This list of certified corporations shows the four following groups all alphabetically arranged : All Illinois corporations that have complied with the requirements of the law and at the time of publication are in good and regular standing. All Illinois corporations that have failed to file their annual report at the proper time and whose charters have been cancelled as of March 31 of the current year. All foreign corporations which have authority to transact business in the State and have filed an annual report for the current year. All foreign corporations previously authorized to transact business in the State that have failed to file an annual report and whose authority to do business has therefore been cancelled. . The annual report of all corporations, whether domestic or for- ^^gn, has a two- fold purpose. '1 ^■ 11 I 712 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 713 r I*' To furnish a list of those corporations that are actually engaged in active business under their respective charters and To facilitate the taxation of corporations by providing informa- tion to the tax officers as to their existence and location. The object of this provision of the corporation Act has been nullified to a large extent by certain decisions of the Supreme Court. The Act provided that ^Failure to make the annual report and pay the fee for the filing of the same should be prima facie evidence that the corporations fail- ing to do so were out of business and should work a forfeiture of their respective charters. In Spreyne vs. Garfield Lodge (117 111. App. 253), the Court held that the failure of a corporation to file an annual report did not of itself work^a forfeiture of its charter but was simply prima facie evidence of non-user, which might be the basis of a suit to forfeit the charter. Later in People vs. Rose (207 111. p. 352, 69 N. E. 762), the court held, explaining its position more fully, as fol- lows : "The thing that works forfeiture of the corporation is the fact of non-user which can be finally determined by a court of competent jurisdiction — Bruflfet vs. Great Western Railway Company (25 111. 353), Baker vs. Administrator of Backus (32 111. 79), Board of Edu- cation vs. Bakewell (122 111. 339, 1 N. E. 378), and the cancellation which the Secretary of State is required to enter upon the records of his office would in such proceedings make a prima facie case for the people. If the corporation is in fact engaged in active business and fails to make the report it is not by reason of that failure deprived of its charter but may in a suit brought against it show the fact and thereby defeat the proceedings " The effect of the Act is simply to make a failure to report as required prima facie evidence and the clause providing that failure to report and pay the fee there- for shall be prima facie evidence that said corporation is out of busi- ness and shall work a forfeiture of the charter of such corporation was merely intended to be a statement of the effect of a condition, namely, non-user, of which condition the failure is made prima facie evidence. This statute did not authorize the Secretary of State to declare absolute forfeiture of charters of defaulting corporations but merely established a rule of evidence and is a lawful exercise of legis- lative powers. As a result of this" ruling of the Supreme Court cor- porations regularly chartered under the Act still continue in active business for years. The law provides that such corporations may be re-instated at any time within one year from their default on payment of a fee of $20 and filing a statement showing: (1) That they are still engaged in active business under their charter, and (2) the facts called for in section 2 of the Act. In the case of the People vs. Rose, already referred to, the courts in discussing the status of corporations failing to report at the required date held that while every corporation thus situated had the right of re-instatement within one year it was in that case not necessary to discuss their rights to be re-instated after the period named in the law had lapsed. As a matter of fact the Secretary of State re-instates corporations no matter how long a period has elapsed since the corporation ren- dered its annual report, on payment of all past due fees and the penalty of twenty dollars .required in the Act. This practice is justified by the department of state on the ground that since the failure to report does not work a forfeiture of the char- ter, as held by the Supreme Court, but is merely prima facie evidence of non-user, it is proper to re-instate after presenting satisfactory evi- dence of being active under their charter. Anti-trust Affidavits: By an Act of June 11, 1891, corporations operating in Illinois, whether domestic or foreign, are prohibited from entering into, or becoming a part of, any trust, pool, combination, fed- eration, etc., with any other corporation or any person or associa- tion of persons for the purpose of fixing prices, limiting production, etc. In the cases arising under this act the courts have held uni- formly that "Any corporation doing business in Illinois is amenable to the terms of the Act of 1891 wherever it was organized and whether or not it has been authorized to do business in Illinois." (Chicago, W. and V. Coal Company vs. People, 214 Illinois.'* 421, 73 N. E. 770, affirming 114 111. App. 76.) "Citizens of Illinois can not evade the laws of Illinois passed against trusts and combines and defeat the public policy of the state by going into a foreign state and chartering a corporation to do business in this State in violation of its laws. Where these foreign companies come into the State to do business they must conform to the laws and public policy of this State." (Harding vs. American Glucose Company, 182 111. 551, 55 N. E. 577.) While in general the enforcement of the anti-trust Act of Illinois is entrusted to the Attorney-General and the State's attorneys in the several jurisdictions the Legislature seems to have acted upon the supposition that the Secretary of State might be of assistance in gath- ering information on this subject; and to this end it is made the duty of the Secretary of State: (1) to send out a letter of inquiry annually on or before the first day of September, addressed to the president, sec- retary, or treasurer of every incorporated company doing business in the state, for the purpose of ascertaining whether such corporations are conforming to the anti-trust law. With this letter of inquiry is a blank form in the form of an affidavit which the proper officer is e:x- pected to fill out under oath stating that the said corporation is not at the given date and has not been since the passage of the Act a member 01 any pool, trust or combine as specified in the Act; (2) to send out a similar inquiry at any time to any particular corporation upon specific evidence that such corporation has entered into any trust or combination in violation of the Act. Wherever any corporation fails to answer the inquiry within 30 days from date when same was mailed, ih ^^^^^^^^y ^^ State is required to certify the said corporation to the Attorney-General who shall then direct the State's Attorney in the county wherein said corporation is located who shall proceed against the said corporation to recover a fine of fifty dollars per day imposed by the Act; or the Attorney-General may proceed in any <^ourt of law or chancery to forfeit the charter of any Illinois cor- > rSiW' 14 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 715 poration or revoke the right to do business in the State of any foreign corporation. For filing the affidavit the Secretary of State is author- ized to impose a fee of one dollar and the law provides a special fund of Six thousand Dollars per annum to assist in its enforcement. As a part of the machinery of the State government for regulating corporations, the anti-trust affidavit is as near an absolute failure as it is possible to find. Indeed it is regarded by the department of state as a source of revenue pure and simple rather than a regulative meas- ure. It is probable that the fee of one dollar pays a little more than the cost of collecting the same. The amount, however, is too small to be of any significance in the tax scheme. This part of the law should be repealed. If, however, it is to be retained it should be, as suggested by members of the department, consolidated with and made a part of the annual report of corporations, thus saving both the cor- porations and the State the unnecessary expense of two returns each year. ' Interrogatories: The use of the interrogatory letter is authorized for both domestic corporations and foreign corporations. In the case of domestic corporations the Secretary of State may propound such interrogatories as he shall deem necessary to ascertain the true objects for which the said corporation is seeking a charter. The Secretary of State makes use of his authority in this particular whenever the object is not clearly stated or where it is evident that the true object is not clearly disclosed in the statement made by the applicant ; and since the courts have generally held that the articles of incorporation them- selves are the criterion by which to ascertain the purpose for which any corporation is formed, the powers of the Secretary of State in this particular is of great practical value. In the case of foreign corporations interrogatories may be used at any time in the discretion of the Secretary of State. He is authorized by section 5 of the Act concerning foreign corporations to pro- pound such interrogatories as he may think best in order to ascertain: (1) the character of the business which the said corporation is trans- acting; (2) the location of the business; (3) the names and residence of its officers and directors; (4) the amount of capital paid in and what disposition has been made of the capital stock subscribed for not paid in. If such interrogatories are not answered within ten days of the receipt thereof the Secretary of State may revoke the charter of the said corporation by filing with the charter of the corporation a cer- tificate of revocation and publishing a notice in a newspaper of a general circulation. If the interrogatories when answered disclose any violation of the law the Secretary of State is required to notify the Attorney-General of the fact. The principal object of the interrogatory letter seems to be to secure information as to the proportion of the property and business which the foreign corporation has in the State of Illinois in order that the fee may be properly assessed. Financial Summary. Revenue. The revenue from the corporation department con- nected with the Secretary of State's office may be found in the report of that officer. For the two years October 1, 1910 to September 30, 1912 the revenue collected and turned over to the State treasury was as follows : Domestic corporations $732,003.15 Foreign corporations 99,413.97 Annual reports of corporations 31,562.50 Reinstatements of corporations 13,754.20 Anti-trust affidavits 35,129.40 Total $911,863.22 , Refund — charters not granted and overpayments 17,857.19 Receipts less refunds $894,006.03 The revenue from annual reports and anti-trust affidavits is not shown separately for domestic and foreign corporations; hence it is impossible to determine the relative proportion paid by each class. Re- funds are made to corporations authorized to solicit subscriptions wherever the project fails and it is shown satisfactorily to the Secre- tary of State that there was a reasonable excuse for the failure. There is no authorization for this practice under the law and its legality has never been passed upon by the courts. For the two years from October 1, 1912 to September 30, 1914, the receipts paid into the general revenue fund of the State treasury from the Secretary of State were as follows: • 1912-13 $512,586.42 1913-14 613,246.42 Total $1,125,832.84 Expenditures. It is impossible to ascertain definitely the annual expense connected with the supervision of corporations by the Secre- tary of* State. The appropriation contains certain items for services distinctly connected with the office for each of the two years beginning July 1, 1913, as follows: Salary Chief Corporation Clerk $2,400 Salary Corporation Clerk 1,800 Salary Corporation Clerk l^SOO Salary Corporation Clerk l^OO Salary Anti-trust Clerk 2,100 Salary Anti-trust Clerk 1^200 Salary Anti-trust Clerk 1800 Two (2) Anti-trust Clerks @ $1,100 2^200 ^alary Stenographer 1 200 Salary Stenographers, 2 @ $840.00 ', 1,'680 ^xpenses Corporation Department 1,500 Expenses Foreign Corporation Department I'oOO In addition to the above the law provides for an annual appropria- tion of six thousand dollars ($6,000) for the enforcement of the anti- IQiV ^^t for the two years ending June, 1913. The appropriations in tyil for the corporation department were as follows: Domestic Corporation Department $ 5,000 *^niorcing Foreign Corporations Act 10[000 ISit 1) • 716 EFFICIENCY AND ECONOMY COMMITTEE. The expense of printing and binding the list of corporations, the report of the Secretary of State so far as it relates to corporations, and for stationery and supplies is included under the general contract and not being shown separately the total amount is impossible even to approximate. , From the above summary it would appear that the total expense incurred by the Secretary of State's office is somewhat over $25,000 a year. It is impossible to tell how much more than this. m II. THE INSURANCE DEPARTMENT. State control over insurance in Illinois dates from 1855 and may be divided into two periods: (1) the period 1855-1893; supervision under the Auditor of Public Accounts; (2) the period 1893 — date; supervision by the Insurance Superintendent. FROM 1855 TO 1893. The first insurance law passed February 14, 1855, applied only to foreign insurance companies. In brief it provided that before under- taking risks or transacting the business of insurance in the State a certificate of authority must be obtained from the Auditor of State as the Auditor of Public Accounts was then designated. The process of obtaining the certificate was as follows: Any agent of a foreign insurance company desiring to write insurance was required to file a statement with the Auditor of State showing: the name and location of company; its capital stock; its assets in some detail ; its liabilities and losses; the greatest amount permitted to be insured in any locality; the greatest amount actually placed in any one block; the Act under which it was incorporated. It was also provided that the company for which the agent was applying must by written document consent to the service of process upon the agent of the company instead of upon the company itself. In order to be eligible to a certificate a company incorporated in an- other state must have a capital of at least one hundred thousand dollars ($100,000) invested in certain specified classes of securities and where the company was incorporated under a foreign government the investments must be located within the United States. After the certificate was granted a copy thereof together with a copy of the statement filed with the Auditor of State, must be published in some newspaper of general circulation in the cities of Chicago, Peoria and Springfield and a copy also filed in the office of the clerk of the court in the county in which the agent desired to write insurance. The cer- tificate was good for one year only and might be renewed by showing that the capital, securities and investments were secure. In addition to the above requireiYients the Act of 1855 attempted to protect policy holders in foreign insurance companies who sustained losses by requiring that the agents retain all moneys in their respective orhces pending the adjustment of claims. The first general Act cover- ^^?: the great fields of fire, marine, inland navigation and life insurance was enacted in March, 1869. Bills for the above purpose were intro- duced early in the session and seem to have been given serious atten- \ 718 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 719 1 »t tion by the committees in tlie Legislature. As a result of their de- liberations two acts were passed. (1) An Act to incorporate and govern lire, marine and inland navigation insurance companies doing business in the State of Illinois. This Act was approved and in force March 11, 1^69. (2) An Act to organize and regulate the business of life insurance was approved March 25, 1869 and was in force July 1, 1869. The Act relating to fire, marine and inland navigation provided that any thirteen or more persons desiring to form an insurance company must file with the Auditor of Public Accounts a declaration and publish the same in a local newspaper. After filing the declara- tion the company might, if a stock company, open subscription books or, if a mutual company, receive propositions for underwriting risks and after securing the capital stock or the requisite number of applica- tions, but before beginning business, however, a copy of the proposed charter and a statement showing the exact financial condition must be submitted for approval. The charter was first submitted to the At- torney-General who passed upon its legality of form. If he approved the company was then examined by the Auditor or by his representa- tives and if the report was satisfactory a certificate was issued entitling the company to enter the insurance business. As a necessary condition to continuing in business each company thus certified must first submit an annual statement showing in detail its assets and liabilities and its receipts and disbursements in such form as may be prescribed by the Auditor ; and, second, must submit to such occasional examination as the Auditor might prescribe. Foreign com- panies were required to have the same qualifications and to submit the same statements as domestic insurance companies. The Auditor was authorized to issue certificates to those properly qualified to do busi- ness under the law. The fees as provided in the Act of 1869 were as follows : Filing declaration $30,00 Filing annual statement 10.00 Furnishing certificates to agents of foreign companies. 2.00 Furnishing certificates to agents of local companies 50 The official seal 1.00 The requirements of the Act of 1869 relating to life insurance companies were in their general principles similar to those regulating property insurance. The same procedure was provided for the forma- tion of companies. The examinations were of the same general nature except in one particular, namely, in the case of life insurance com- panies the Auditor was required to make a valuation of policies provided such policies were not valued by other states. The Auditor was allowed certain fees for the examination and the certificate, ana he was required to publish an annual report. As a result of this legislation the annual reports of life insurance companies in Illinois date from 1869. Supplementary legislation. Supplementary laws extending the scope of the business of insur- ance and of the work of the Auditor of Public Accounts in regulating companies have been as follows : Act of May 19, 1872; foreign fire insurance companies must deposit Two Hundred Thousand Dollars ($200,000) with the insurance depart- ment unless a similar amount is deposited in some other one of the United States. Act of May 24, 1874; authorizes the formation of township fire insur- ance* companies ; formation and regulation similar to general fire insurance companies. Act of June 2, 1877; county fire insurance companies may be author- ized l»y the Auditor to engage in writing insurance against fire and lightning. Act of June 4, 1879 ; foreign companies to have licenses upon condition that they agree not to remove cases to United States courts when the transaction arose in this State. Act of July 1, 1879; foreign property insurance companies must com- ply with the general insurance law. Act of May 31, 1881 ; contiguous townships may join together to form insurance companies; not more than twelve (12) townships in all. Act of June 18, 1883; fire insurance companies must have a deposit of two hundred thousand dollars ($200,000) in some states and an agent in this State upon whom process can be served ; agent must have a certifi- cate of authority from the Auditor, Act of July 16, 1887; farmers county mutual live stock insurance com- panies authorized ; regulation similar to general insurance companies. Act of June 4, 1889; county mutual wind storm insurance companies authorized. Act of June 7, 1889; accident insurance companies authorized; forma- tion and regulation similar to general life insurance companies. Act of June 16, 1889; insurance companres may be formed to furnish indemnity to widows, etc. Act of June 22, 1891 ; companies other than mutual and stock companies already authorized must have a surplus of two hundred thousand dollars ($200,000) in order to do business in Illinois. SUPERVISION BY THE INSURANCE SUPERINTENDENT. By an Act of the T_.egislature of June 20, 1893, a separate and dis- tinct department of the State administration was created entitled the Insurance Department of the State of Illinois. This department was placed under the control of an ofificer called the Insurance Super- intendent. To this new office was intrusted the execution of all laws relating to insurance and insurance companies organized and doing business in the State. The Insurance Superintendent is appointed by the Governor by and with the advice and consent of the Senate and holds office for four years. The appointee is required to be "a person experienced in the matter of insurance." The salary is fixed in the Act at five thousand dollars per annum. The superintendent is authorized to api>oint an actuary and such assistants as may be necessary for the conduct of the business. The Insurance Superintendent succeeded to all the powers over insurance formerly exercised by the Auditor of Public Accounts and Attorney-General. He was authorized to have an official seal and to amx the same to documents and papers examined by his department. Ihe duties of the Insurance Superintendent were those formerly placed upon the Auditor of Public Accounts so far as insurance business in the State was concerned. In general the duties of the Insurance Super- intendent are as follows : I ■ t 720 EFFICIENCY AND ECONOMY COMMITTEE. Neiv Companies. The Insurance Superintendent is authorized to supervise the for- mation of new companies and to examine (a) the legality of their corporate organization; (b) the financial responsibility of the individ- ual companies. The law at present provides for the formation of insurance companies in each of the following fields : Fire, marine and inland navigation. Life insurance. Accident and health insurance. Fraternal beneficiary societies. Casualty, health, employers liability, credit, burglary, steam boilers, plate glass and other lawful risks. Wind, cyclone and tornado. Surety. Live stock. The process of formation is generally the same for all varieties of insurance. Persons desiring to form a company must first file a dec- laration in the office of the Superintendent of Insurance signed by all the corporators stating the purpose and accompanying the declaration with a copy of the charter, the terms of which are to a certain extent prescribed by law. After the charter has been filed and the title of the company approved by the Superintendent of Insurance the cor- porators may proceed to solicit subscriptions to the capital stock, or if a mutual company, propositions for insurance. When the prescribed amount of capital stock has been subscribed or the required amount of business secured the charter and proof of publication must be exam- ined and if approved, the same shall be certified by the Superintendent. The Superintendent then must make an examination of the company to ascertain whether the required amount of capital has been paid or the required amount of business secured. When satisfied that all the requirements of the law have been complied with the charter is cer- tified and the same when filed in the office of the county clerk is the authority of the company for the writing of insurance. Admission of Companies from other Jurisdictions. The State insurance law has always favored the admission of foreign companies for the purpose of writing insurance in this State. Indeed the Honorable Fred W. Potter, ex-superintendent of insur- ance, in his annual report for 1913, part I, p. 17, congratulates the people of the State upon the favorable record of our Legislature in this respect. As early as 1855 when the first Act was passed regu- lating the admission of foreign insurance companies to do business in this State, no conditions were imposed that would work any hardship upon any legitimate insurance company. At that time the fees required were merely nominal. At the present time the law requires that in order to be admitted to the State the following conditions must be complied with : There must be a resident attorney upon whom process may be served. Securities to the same amount and character as required of State companies must be deposited with the State Insurance Superintendent or proof furnished that a like amount is deposited with the proper officer m some other state of the federal union. Foreign companies must have available cash assets at least equal to that required of domestic corporations. SUPERVISION OF CORPORATIONS. 721 Annual Reports. All companies doing an insurance bu-siness in this State whether domestic or foreign are required to make an annual report to the Insurance Superintendent in such form as he may prescribe and to deposit the same in the office of the Insurance Superintendent some time during the month of January. The form as prescribed at the present time demands satisfactory information both as to the char- acter of the assets and of the liabilities and also of the sources of income and the specific disbursements. In general the schedule of questions in use at the present time contain approximately thirty specific inquiries which must be answered in detail and without quali- fication. By an amendment of 1903 the Insurance Superintendent may add to the specific inquiries made by law. Examinations. The most difficult and the most important duty of the Insurance Superintendent after the chartering of domestic companies is that of making examinations of insurance companies doing business in the State whenever he deems it expedient to do so. For this purpose the Insurance Superintendent is authorized to appoint examiners when- ever he finds it impracticable to make examinations himself. In such examinations the Superintendent is authorized to inspect books and records and documents, to examine under oath the officers and agents. If after such examination he finds the assets are not sufficient to justify the continuance of the company he may direct that any deficiency in assets be made good within a designated time or he may apply to the circuit court for an order requiring such company to show cause why the business of the company should not be discontinued. If the case warrants, the court may decree a dissolution of the company or provision may be made for an assessment upon the stockholders of a stock company or the members of a mutual company. In the case of foreign companies the Insurance Superintendent is authorized to revoke the certificate granted its agents and to see that no further business is written in the State. Publications. By Section 9 of the Act of 1893 creating the department of insurance the superintendent is required to report annually not later than May first to the Governor concerning the affairs of the office. In this report the superintendent is required to include tabulated statements and a synopsis of the annual statements of the insurance companies doing business in the State and such other matters as in his opinion may be for the benefit of the public. In accordance with the above provisions the Superintendent of Insurance publishes an- nually three volumes — part 1, fire; part 2, life; part 3, casualty, surety and fraternal associations. For the year 1913 these reports show that the department exercised supervision over the following companies : Fire, marine, etc 1 Illinois joint stock fire insurance companies 7 JJlinois mutual fire insurance companies 13 Other states joint stock fire and marine insurance companies. , 138 I ^22 EFFICIENCY AND ECONOMY COMMITTEE. Foreign government fire and marine insurance companies 66 Other states mutual fire insurance companies 28 '^ot^l 153 Local mutual companies : — ' District mutual fire insurance companies 12 County mutual fire insurance companies *. ! . ! .63 Township mutual fire insurance companies {43 District mutual wind-storm and lightning insurance companies.*.!'.!*.]. 8 County mutual wind-storm and lightning insurance companies 4 '^otal 7^ Grand Total "43^ In addition to the above there were operating in the State 21 inter insurers, and 8 Lloyds. Lifer—Legal reserve companies: — Illinois companies 2I Other states* companies ........!..!!!!!!!!! 55 Foreign government companies 4 Total 80 Casualty, assessment and fratemals:— Casualty : — Illinois casualty companies 13 Other states' casualty companies !!...!!!!!!!!!!!! 67 Foreign government casualty companies !!.!!!!!.!!!!!!!!!!!!!! 9 Total g9 Assessment life: — Illinois assessment companies 13 Other states assessment companies .*.!.'!.*.*.*.*.'.*.*!!! ! ! !!!!!!! 7 Total 20 Assessment accident: — Illinois assessment accident companies 10 Other states* assessment accident companies ! ! ! 5 Total 7I5 Fraternal : — Illinois fraternal insurance companies 68 Other states* fraternal insurance companies !.!!!!!!! 74 Foreign government fraternal insurance companies ! 1 Total J43 Grand Total 267 The above may be summarized as follows: Companies doing a general fire and marine insurance 252 Companies doing a local fire windstorm and cyclone insurance 230 Lloyds and inter-insurers 29 Legal reserve life insurance companies 80 Casualty, surety, plate glass, etc .'..,. 89 SUPERVISION OF CORPORATIONS. 723 20 Assessment life insurance companies ^ Assessment accident insurance companies ^^ Fraternal societies J Grand Total ;^ In addition to the above it should be remembered that the depart- ment of insurance exercises supervision over companies winding up their affairs, either when insolvent or for any other cause. Official Staff. The official staff of the Insurance Superintendent consists of twenty-five persons classified as follows: Insurance Superintendent ^ Actuary • r Examiners * -.^ Clerks 2 Stenographers . Bookkeeper - Messenger ' - Janitor • ^ 25 All of the appointees of the Insurance Superintendent are at the present time in the classified Civil Service. Financial Summary. The insurance department collects fees and taxes as prescribed in the various Acts, on domestic and foreign insurance companies, the amount for 1912 being shown below: Fees. Annual statements $ no'onocn Agents licenses I'mcm Charters ^^A'm Assessment companies and f raternals 9^ m Township companies and district mutuals f 1 aoo Miscellaneous fees 7 q^« «1 Special agents — surplus lines o ^S 1 1 Examinations iTom Inter-insurerers anfl Lloyds l/y.UU Total $145,716.66 Taxes. Insurance companies ^?5'92i§5 Fire Marshal 59,887.80 Total $484,919.68 Grand Total $630,636.34 The Auditor's report of November 1, 1912, shows that for the biennium 1910-12, the Insurance Superintendent turned over to the State treasury from fees collected the sum of $1,178,695.41 and that in addition to this there was the sum of $3,972.12 from the same officer under an Act of June 9, 1911, relating to the payment of public money of the State into the State treasury. I 724 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 725 The Auditor's report for the two years ending September 30, 1914, shows the following receipts of the State treasury from the Insurance Superintendent : 1912-1913 $ 735,918.05 1913-1914 618.602.82 Total $1,354,520.87 The authorized expenditures of the department, under the appro- priations for the two years from July 1, 1913, to June 30, 1915, are as follows: Salary Insurance Superintendent $ 5,000 Actuary and Assistant 6,400 Chief Clerk and Assistant 5,400 Cashier and Bookkeeper 2,200 Securities Clerk 2,200 Five Valuation Clerks @ $1,500 7,500 Abstract Clerk 2,200 Policy Examiner and Stenographer 1,500 Three Certificate Clerks 3,900 Index Clerk 1,500 Chief Examiner 3,500 Two Assistant Examiners 5,000 Two Stenographers 2,400 Messenger and Janitor 1,700 Extra Clerk Hire , 1,000 Total Salaries $51,400 Office Expenses $ 8,000 Examination and Investigation 10,000 Prosecution of Violations 3,000 Legal Services 4,000 Printing Reports 2,000 Attending National Convention 125 27,125 Total Per Annum $ 78,525 For Two Years $157,050 For Office Equipment 1,450 Grand Total, 1913-15 $158,500 Appropriations, 1911-13 , 154,450 Expenditures as shown by the reports of the Auditor of Public Accounts for the two last biennial periods have been as follows : October 1, 1910, to September 30, 1912: Salaries $1 19,852.26 Expenses 23,187.95 Total $143,040.21 October 1, 1912, to September 30, 1914 154,735.17 The report of the Insurance Superintendent is published in three parts : Part I — Fire, Marine, etc. Part II — Life legal reserve. Part III — Casualty, surety, steam boiler, plate glass and fraternal and assessment sureties. Each volume contains, first a general summary of the work of the department with reference to the branch of insurance therein con- tained; second, a series of general tables and the reports of the financial condition of each of the separate companies. The three vol- umes at the present time embrace approximately 2,500 pages. The law requires that an edition of at least one thousand be published. In addition to the regular report, the legislature has authorized the publication of a fourth volume containing the report of the farmers' mutual companies authorized under the State law. For printing and distributing the latter a special appropriation is made. In the case of the regular report, the expense is included in the general contract and some details may be learned from the report of the Secretary of State, especially that portion devoted to the work of the State Printer Expert. From these sources w^e summarize as follows : Publication Expenditures. 1910-12. Printing and distributing farmers* mutual ins. companies reports $ 2,112.33 Printing fire reports 2,215.68 Printing life reports 1,721.10 Printing casualty, etc 2,132.80 Binding reports 4,464.10 Printing insurance laws 339.69 $12,985.70 It is probable that the above is not complete, as it is apparent that only the more important items were separately listed, the remainder being included in the general printing bill. STATE FIRE MARSHAL. By an Act of June 15, 1909, the office of State Fire Marshal has been created. This officer is appointed by the Governor, with the advice and consent of the Senate, for a term of four years. In most respects the office is independent of any other; but in some matters it is associated with the Insurance Department. The bond of the State Fire Marshal must be approved by the Insuran(;e Superintendent ; and he reyorts annually to the Insurance Superintendent, who pub- lishes such parts as he deems desirable. The report of the Fire Mar- shal regularly appears as an appendix to the Report on Fire Insurance. The State Fire Marshal is authorized to appoint one chief assis- tant, a first and second deputy fire marshal, and also additional depu- ties and office assistants. He may also appoint as inspectors persons skilled in the business of fire insurance and in the inspection of build- ings, who have the powxrs of other deputies, but serve without com- pensation. Under the Act of 1909; the State Fire Marshal receives a salary of $3,000 a year, the assistant fire marshal $1,800 and the first and second deputies $1,500 each. The appropriation Act of 1913 provides for the following staff and salaries: Chief deputy $ 2,000 •Six deputies (g) $1,500 9,000 Eighteen deputies @ $1,200 21,600 Four stenographers 4,500 I /26 EFFICIENCY AND ECONOMY COMMITTEE. Statistician .~ 1,000 Stenographer fees 3,000 Janitor 180 Total salaries $ 41,280 Traveling expenses $24,000 Office rent and expense 6,000 30,000 Total per annum $ 71,280 For two years 142,560 The work of the State Fire Marshal is two fold: (1) To investigate the causes of fires, and especially those of suspic- ious origin. (2) To inspect dangerous buildings on complaint. In this work the State Fire Marshal co-operates with local author- ities — the chiefs of fire departments, the mayors of cities and villages where no fire departments exist, and the township clerks. The local officers are required to make investigations and to report to the State Fire Marshal within one week; and local officers who do not receive compensation are paid fifty cents for each fire reported and fifteen cents per mile for travel to the place of the fire. When the State Fire Marshal considers further investigation necessary, he has power to summon witnesses and take testimony under oath ; and where there is evidence of crime he is required to have prosecutions instituted. On examination of buildings on complaint, the State Fire Marshal, his deputies or the local authorities, may order buildings or other con- ditions which endanger other buildings or property to be removed or remedied. Appeals may be taken from orders given by any subordi- nate officer to the State Fire Marshal. Financial Statement. The work of the State Fire Marshal is supported by a tax on the gross receipts of insurance companies operating in the State to be paid into a special fund. The law provides that the tax may not exceed one-fourth of one per cent of the gross receipts, and whenever there shall be an accumulation from previous years that the rate of assessment on the gross receipts shall be correspondingly lessened. For the two years ending September 30, 1914, the receipts and expen- ditures were as follows: 1912-13 1913-14 Receipts $61,275.46 $62,991.04 Expenditures 54,480.49 76,029.96 Proposed Building Commissioner. A Commission appointed under an Act of 1911, to revise and codify the building laws of the State of Illinois, reported in 1913 a tentative draft of administrative provisions and certain other portions of a proposed building code. This measure proposed the creation of a State Department of Buildings, under a State Building Commis- sioner, to be appointed by the Governor, to enforce the law relating to the construction, alteration, repair and safety of buildings. SUPERVISION OF CORPORATIONS. 727 If a State building code is enacted, with machinery for State supervision of building construction, it should be combined with the present State Fire Marshal's office. Such an office should also actively co-operate with the factory inspection service, and with the inspection of hotels and lodging houses. I SUPERVISION OF CORPORATIONS. 729 III. SUPERVISION BY THE AUDITOR OF PUBLIC ACCOUNTS. The Auditor of Public Accounts has two functions as an admin- istrative officer: first, as the State auditor in charge of the accounting system for the entire State administration; second, the regulation of State banks, trust companies, building and loan associations, pawners' societies, wage loan corporations, and title guarantee companies. For the years 1910 to 1912 the work of the Auditor's office in the second capacity may be summarized as follows: 136 banks were organized. 3 converted into national banks. 8 consolidated with other State banks. 8 charters expired. On October 1, 1912, 607 banks were subjected to regulation by the auditor's office. Ten calls were made upon banks for statements under the provision of section 7 of the Bank Act. During the biennium, 1910-12, seventeen banking associations, one institution organized under the general corporation act, and two for- eign corporations were authorized to conduct the business of trust companies under the law. One banking association and one foreign corporation have surrendered certificates during the same period. Two consolidations affecting three banking associations, one affecting two general corporations, one affecting two foreign trust companies were formed. Two pawners' societies were in operation and regularly examined. There are only two title guarantee companies operating under the Illinois law. Both of these companies have been regularly examined. THE REGULATION OF BANKS. Banking in Illinois may be conducted in either one of three ways : first, the national bank system ; second, under the State banking system; third, as private bankers. The first of the three classes is subjected to examination by the United States government; the second by the Auditor of Public Accounts; the third class operates entirely free from public regulation. Incorporation. The general banking law dates from June 16, 1887. It was then provided that banks may be formed "for the purpose of discount and deposit, buying and selling exchange, and doing a general banking busi- ness excepting the issue of bills to circulate as money and such banks or banking associations shall have the power to loan money on per- sonal and real estate security and to accept and execute trusts. The process of forming State banks is similar to that prescribed for general business corporations. When any number of persons desire to form a banking corpora- tion they are required to render a statement under seal and properly acknowledged showing the place of business, the amount of capital, the time for which the corporation is formed and the name under which they propose to operate. This statement is presented to the Audi- tor who, if he finds the application in proper form, will issue a permit to open books for the purpose of securing subscriptions to the capital stock. When the capital stock is fully subscribed, a meeting of the subscribers is called for the purpose of organizing and electing direc- tors. The directors then organize, appoint the officers and employes, make the by-laws, and take an oath of office such as the auditor shall prescribe. They may then open books and furnish the Auditor with a list of stockholders and such records as the auditor may require. When the directors have organized, the capital stock is fully paid in and a record of the same laid before the Auditor, he is then author- ized to make a thorough examination into the affairs of the banking corporation. If after such examination is made, he is satisfied that the banking company has the full amount of capital authorized in proper funds, he shall then collect from the banking association the expense of making the said examination and then shall give them a certificate under seal, authorizing them to commence business under the la^y. The said certificate and the permit issued in accordance therewith shall then be recorded in the office of the recorder of deeds in the county where the bank is organized. Upon the recording of said certificate and permit the bank is fully organized and may pro- ceed to do business. The Auditor is not only the supervisor of the financial operations of the bank but he is authorized to withhold the certificate provided he is not satisfied as to the personal character and standing of the officers or directors elected to manage the business, or if he has reason to believe that the bank is organized for any purpose other than that contemplated by the Act. Examinations, The Act authorizes two distinct kinds of examinations : (1) An examination which is' in the form of a report to the Auditor upon a blank form prescribed by the Auditor's office and sent out to each bank. Such reports must be called for at least once every three months. It is the practice of the Auditor's office to make such calls simultaneously with the calls issued from the Treasury Depart- ment at Washington upon the National banks. Such reports must be returned to the Auditor within five days after the call is received. A he report received is published at the expense of the bank making Jt in some newspaper published as near as possible to the location of the bank. These reports are also published by the Auditor in pamphlets and distributed to the banks and other interested parties. (2) In addition to the stated examination as above described, the auditor is authorized to make an examination of the affairs of every oank established under the provision of the Act at least once in each \ 730 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 731 year. For this examination the Auditor is authorized to appoint suit- able deputies who make a personal examination of the bank and report to the Auditor upon a blank prepared in the Auditor's office. For the purpose of the personal examination of the bank the Auditor's office employs a number of bank examiners, and in addition to the office at Springfield a second office is maintained in Chicago. The expense of the examination is provided for in the law as follows: each examiner receives ten dollars a day for his services and the necessary mileage. This is charged against the bank and is paid at the time of the examination. The examiners are, however, paid a salary and at the present time the receipts from the examination are not sufficient to provide the entire cost of examination. Consequently, as a result, the State is at some expense on account of the bank examinations. The banking law provides fairly strict regulations as to the finan- cial policy of each bank and is especially stringent in its provisions as to the impairment of the capital of the bank. As it is the duty of the Auditor to see that the banking law is strictly followed by each bank organized under the Act, it is of the utmost importance that the exam- inations be in the hands of competent men and the examinations thoroughly and carefully made. As there are at the present time almost 700 banks which must be examined annually and only ten examiners assigned to field work, it is evident that each examiner must make something like seventy examinations annually; or, one examina- tion in approximately four days. It is questionable whether the exam- inations can be as thorough as they ought to be with the present force of examiners. It should be mentioned in this connection that four of the ten examiners are assigned to the district outside of Chicago, and that of the seven hundred banks over six hundred are in the country districts. This would mean that every country bank examiner must examine 150 banks, or one every two days. TRUST COMPANIES. X The work of the trust company may be carried on in this State by three different kinds of companies: (1) corporations under the general law; (2) banks; and (3) foreign banks having trust powers and licensed by the State. The general law governing the operation of trust companies in Illinois was passed in 1887. This Act provided that any corporation organized under the general law for the purpose of accepting and executing trusts or any corporation that might be authorized by law to accept risks must, before accepting a trust, file a statement with the Auditor of Public Accounts. If the Auditor finds that the company is lawfully organized for the work in accordance with the provisions of the Act, he shall issue a license authorizing the corporation to do busi- ness as provided in the law. Such corporations must make deposit with the Auditor of Public Accounts of the following amounts : namely, companies operating in cities of 100,000 or more must deposit $200,000 and companies operating in cities of less than 100,000 must deposit $50,000. Such deposits are held in trust by the Auditor of Public Accounts for the creditors of the company. Bonds of the United States, municipal bonds, or mortgages on improved or productive real estate in the State are the particular kinds of security that may be accepted. Foreign corporations are subjected to the same require- ments as domestic and must submit a statement and receive a license before undertaking trusts. Examinations and Reports. Every trust company authorized by the Auditor of Public Accounts is required to make an elaborate report to the Auditor in regard to its assets and liabilities ; and in addition the Auditor is re- quired to make an examination of such companies similar to that pro- vided for banking corporations. For this purpose the Auditor ap- points examiners, and the expense of the examination is paid by the trust company examined. These examinations are to be made annually and abstracts of the annual reports, in form prescribed by the auditor, are published in two newspapers — one located in the city of Springfield and the other in the county seat of the county where the respective trust company is located. The Auditor may make such other examinations as he deems proper by sending the proper blank to the trust company and requiring that it shall be filled in accordance with directions thereon. If the Auditor finds any violation of the law or any irregularity in the conduct df the business, he must make an order directing the discontinuance of such illegal or unsafe practice; and if the particular corporation refuses or neglects to comply with the Auditor's directions, he is directed to communicate the facts to the Attorney General who will thereupon institute such proceedings as the case may require. The Auditor also has authority to revoke the certificate where satisfactory evidence is presented that any annual statement or other report required by the act is false. If it is afterwards proven to the satisfaction of the Auditor that the corporation is then strictly com- plying with the law in all particulars, he may set aside the revocation and permit the trust company to continue business. Certain fees are required in connection with the reports which partially pay for the supervision of these corporations. PAWNERS* SOCIETIES AND WAGE LOAN CORPORATIONS. Pawners' societies and wage loan corporations are formed under the general law and make an annual report to the Auditor of Public Accounts on each year's work for the fiscal period ending September 30. The Auditor of Public Accounts has the same power of examina- tion over pawners' societies and wage loan corporations as over trust companies. BUILDING AND LOAN ASSOCIATIONS. Building and Loan Associations are regulated under the law of j^79 which has been amended several times in various particulars. '15^^ are now 591 of these associations operating under the law of 1879 in the State of Illinois of which 219 are in Chicago and 372 I I 732 EFFICIENCY AND ECONOMY COMMITTEE, outside. The reports of the building and loan associations are pub- lished by the auditor in a special report in which the building and loan associations are alphabetically arranged. Incorporation. Building and loan associations are incorporated in the same gen- eral way as corporations under the general law. Any number of per- sons, not less than five, make a statement, sealed and acknowledged, to the Auditor of Public Accounts. This statement contains the name of the association, the capital stock, location and duration of the cor- poration, etc. The Auditor then issues permission to the commissioners to open books for receiving subscriptions. When 100 shares have been subscribed, the commissioners call a meeting, elect directors, adopt a constitution and by-laws, and make a full report to the Auditor of Public Accounts, including a copy of all transactions up to the date of filing the report. The Auditor submits the by-laws to the Attorney-General and if he approves them, the Auditor issues a complete certificate which is recorded in the office of the county recorder. The company is then fully organized. The law provides that it shall be unlawful for any company, asso- ciation, corporation, or co-partnership assuming to be a company or corporation to transact business in this State for the purpose of receiv- ing money in installments or for supplying money to build homes, excepting under the provisions of this Act. The officers are required to give bonds in appropriate amounts which are filed with the Auditor of Public Accounts. The Act pre- scribes fairly definitely in regard to shares, capital, statements, with- drawals, meetings, duties of directors and so on. Annual Report. Every building and loan association is required to make an annual report to the Auditor containing a detailed statement of its receipts and expenditures within sixty days after the end of its fiscal year. Examinations. Examinations are prescribed as in the case of banks, and a force of examiners employed in the Auditor's office make the examinations. Custodian. The law provides that if the assets of any building and loan asso- ciation are impaired and knowledge of the fact comes to the Auditor through reports or examinations, he shall appoint a custodian, call a meeting of the shareholders, and make a report to them. The custodian shall then take charge of the entire affairs and make a report to the shareholders. If it shall be found practical to reorgan- ize, the Auditor shall prepare plans for the same and turn the company over to the new organization. In case he is unable to reorganize, vol- untary liquidation may be authorized by the Auditor, or he may report to the Attorney General who will then apply to the circuit court for authority to wind up its affairs. SUPERVISION OF CORPORATIONS. 733 Foreign Building and Loan Associations. Foreign building and loan associations are subject to the act. In order to undertake the work of a building and loan association with- in this State, a foreign building and loan association must apply for a certificate from the Auditor of Public Accounts, make a deposit of $100,000 in bonds and stocks, approved by the Auditor, and file a copy of their charter and by-laws together with a statement of their financial resources as required of domestic building and loan associa- tions. If the Auditor finds the report satisfactory and all the provisions of the law complied with, he issues a certificate permitting such build- ing and loan associations to operate in this State. He may cancel the said certificate whenever he finds that the foreign building and loan association is not operating in conformity with the law. The fee for the certificate of authority is fifty dollars and the annual renewal thereof is twenty-five. TITLE GUARANTEE COMPANIES. The title guarantee company act was passed in 1901. It author- ized the formation of companies to conduct the business of guarantee- ing titles to real estate. The title guarantee company while in fact an insurance company is not placed under the jurisdiction of the insur- ance superintendent. Such companies are incorporated under the general corporation act, but are subject to the supervisory control of the Auditor of Public Accounts. They are required to maintain deposits with the Auditor of $25,000 of securities, except in cities of 3,000 or more where $50,000 of securities are required. Title guaran- tee companies are regularly examined by the Auditor and are required to submit annually reports of their condition. If as a result of exam- ination it is found that the capital of any such corporation is impaired, to the extent of twenty-five per cent or for other reason is found to be in unsafe condition, it is the duty of the Auditor to cancel the author- ity to continue business in the State. FINANCIAL SUMMARY. The following statement shows the amounts appropriated in 1913 for the staff and expenses of the banking and building and loan depart- ments : ' Banking Department. Chief clerk $ 5,000 Clerk '. 1,500 Two stenographers @ $1,200 2,400 Clerk and messenger 900 Two bank examiners, Chicago, @ $5,000 10,000 Two assistant bank examiners, Chicago, @ $3,600 7,200 Two assistant bank examiners @ $2,500 5,000 Four bank examiners @ $4,000 16,000 Two stenographers, Chicago, @ $1,200 2,400 Extra clerk hire and examiners 5,000 Total salaries $ 55,400 traveling expenses, bank examiners 7,500 I 734 EFFICIENCY AND ECONOMY COMMITTEE. Building and Loan Department. Assistant chief clerk ^ 3^000 Two clerks ...!....!.. 4750 Five examiners \\\ i I'soo Total salaries t 19 250 Traveling expenses, B. and L. examiners 4*000 Rent, Chicago office 1*500 Total per annum ...$ 87,650 For two years $175 ^qq Furniture, carpets, etc., Chicago office ...V....] ...... ...... l|oOO Grand total ...$176,300 The statement below shows the expenditures and receipts for each department for 1912-13: Expenditures and Receipts, igi2-ij. Banking Building and _ , _ . Department Loan Department Jota Receipts $95,505.48 $26,336.67 Total Disbursements 104,282.65 39,126.90 Deficit $ 8,777.17 $12,790.53 It will be noticed that both the banking and building and loan departments show a small deficit, which is relatively larger for the building and loan department. The fees provided for the examiners are ten dollars a day and traveling expenses while actually engaged in making examinations. The salaries and expenses of the examiners are on the average somewhat in excess of the amount of fees prescribed by law. As a necessary result there is an annual deficit. While it is not necessarily essential that these departments should be self-supporting, it may be proper to suggest that the fees charged for the examinations might be increased sufficiently to overcome the deficit and thus put the burden upon the banks and building and loan associations rather than upon the general taxpayers. W'^^ IV. THE PUBLIC UTILITIES COMMISSION. Introduction. State action in relation to what are now known as public utilities, l)egan in Illinois with plans for a canal connecting the Chicago and Illinois Rivers. After much discussion, construction was begun in 1836, and the canal was completed and opened for navigation in 1848. Soon after work was begun on the canal, plans for an extensive system of internal improvements were undertaken, including a series of State railroads ; but only a few miles of road were built before this elaborate plan was abandoned ; at a considerable loss to the State, and the rail- road built was sold. In 1851 the Illinois Central Railroad was chartered, and received large tracts of land granted by Congress to the State to aid in the construction of such a road. Other roads were rapidly built, aided in many cases by funds raised by counties and municipalities, which incurred large debts for these purposes. Until after the close of the civil war, both State and local authorities were active in encouraging the construction of railroads; and there was no attempt at public regulation. Constitution of 1870. Public opinion in regard to railroads changed rapidly in the few years before 1870. Complaints of railroad charges and the demand for public regulation were among the important factors leading to the constitutional convention of 1869-70 ; and the revised constitution con- tained a number of provisions relating to railroads and warehouses. The consolidation of competing roads was prohibited, the issue of stocks and bonds was restricted and the general assembly was required to establish reasonable maximum rates and to pass laws to correct abuses and prevent unjust discrimination and extortion. Other pro- visions provided for the regulation of public warehouses. Limitations on the indebtedness of local districts restricted closely further public aid for railroad building; while at the same time provisions were adopted to require the payment of debts already incurred. Railroad and Warehouse Commission. Following the adoption of the Constitution of 1870, a railroad and warehouse, commission was established in 1871, with important powers of supervision and regulation of railroads and public ware- houses. This was one of the leading measures in the movement of this time for public regulation of railroads ; and the litigation on its con- stitutionality resulted in a judicial decision — in the case of Munn vs. Illinois— upholding the power of the State to regulate business affected With a public interest. ■w I ik ii% 736 EFFICIENCY AND ECONOMY COMMITTEE. A general act for the incorporation of railroads was passed in 1872 ; and from time to time additional legislation was enacted amend- ing and supplementing the legislation of 1871 and 1872, of which the following acts may be noted : 1873 To prevent extortion and unjust discrimination. 1874 in relation to fencing and operating railroads 1877 To compel railroad companies to build and maintain passenger and freight depots. 1877 Investing conductors with police powers. 1877 In regard to interlocking signals at grade crossings and bridges. 1891 For the protection of grade crossings. 1905 To provide for the inspection of safety appliances. 1907 Establishing passenger rates. 1909 To regulate the size and construction of caboose cars. 1909 To require switch connections. 1911 To punish any person drinking intoxicating liquors in railroad cars. Of much more importance than the foregoing were the amend- ments passed in 1911 to the railroad and warehouse commission act of 1871. These amendments granted to the commission much greater authority over rates and services of railroads, and extended its juris- diction to include other common carriers. Another act of this year provided for the regulation of express companies. The additional powers granted by this legislation resembled those recently granted to railroad and public service commissions in other states, and those granted to the inter-state commerce commission by acts of Congress of 1906 and 1910. Local Utilities before 1^13. Before 1870 there were few local public utility services in Illi- nois. But an act of the general assembly of 1865 granting privileges to street railway companies in Chicago led to a provision in the con- stitution of 1870 requiring the consent of the local authorities for street railway grants. By statute, the term of street railway grants has been limited to twenty years, and frontage consents must be secured. Municipal water works have been authorized ; and the power of cities and villages to light the streets has been held to authorize a municipal plant for that purpose ; an act of 1903 authorizes municipal street railroads; but thus far none have been established. More recently, the city of Chicago received power to regulate gas, electric light and telephone rates. PUBLIC UTILITIES LAW OF 1913. The Public Utilities Law of 1913, which went into effect January 1, 1914, repealed the railroad and warehouse commisson law and the act relating to express companies, and established a new State Public Utilities Commisson with jurisdiction and general supervision over all classes of public utility companies. This commission consists of five members, appointed by the governor, with the advice and consent of the Senate, to serve — after the first appointment — for six years, one or two members retiring at a time. Not more than three members of the commission may be affiliated with the same political party. Tiie chairman is designated by the governor. SUPERVISION OF CORPORATIONS. 737 The commission appoints a secretary and a counsel to hold office at its pleasure. Other officers and accountants, engineers, experts and other employees are appointed by the commission with the approval of the governor. Such appointments, except attorneys, chief engineer, chief accountant, one private secretary to each commissioner, tem- porary experts and positions exempted by the civil service commis- sion, are made subject to the civil service law. Each commissioner receives an annual salary of $10,000; the secretary $5,000, and the counsel $6,000. The compensation of other officers, agents and employees are fixed by the commission subject to the approval of the governor. The general assembly of 1913 appropriated $60,000 a year for the expenses of the commission ; and in addition the unexpended portion of the appropriation of $40,360 a year for salaries and expenses of the railroad and warehouse commission is available for the public utilities commission. These amounts, with the salaries of officers named in the law, which are payable out of the general appropriation for the salaries of State officers, makes a total of about $260,000 for the 18 months from January 1, 1914, to July 1, 1915. Public Utilities Defined. • ^ The term "public utility" is defined in the act to include: . Ever\' corporation, company, association, joint stock company or asso- ciation, firm, partnership, or individual, their lessees, trustees, or receivers appointed by any court whatsoever (except, however, such public utilities as are or may hereafter be owned or operated by any municipality) that now or hereafter: (a) may own, control, operate or manage, within the State, directly or indirectly for public use, any plant, equipment or prop- erty used or to be used for or in connection with the transportation of persons or property, or the transmission of telegraph or telephone messages between points within this State ; or for the production, storage, transmis- sion, sale, delivery or furnishing of heat, cold, light, power, electricity or water; or for the conveyance of oil or gas by pipe line; or for the storage or warehousing of goods; or for the conduct of the business of a whar- finger; or that: (b) may own or control any franchise, license, permit or right to engage in any such business. Incorporation, Franchises and Licenses. No change is made by the public utility law in the provisions for incorporating public utility companies; and such companies continue to be incorporated by the Secretary of State. Foreign public utility corporations authorized to do business in Illinois also continue to be licensed by the Secretary of State; but it is provided by the public utility law that : No franchise, license, permit or right to own, operate, man- age or control any public utility, except common carriers engaged in inter-state commerce shall be hereafter granted or transferred to any granter or transferee other than a corporation duly incor- porated under the laws of this State. As enacted the public utility law contains no definite provision as to the granting of special franchises or licenses to public utilities for the use of public streets and highways. One article of the bill for this law, dealing with municipal powers, continued the former powers ^i cities and villages and provided for a large power of municipal mvi i If I 738 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 739 ' u '■ regulation over local utilities. The omission of this article leaves some question as to the effect of the law on the former powers of cities and villages. But under the constitution the grant of local street railway rights cannot be given without the consent of the local authorities- and It seems probable that the earlier laws requiring the consent of municipal authorities and in some cases of property owners are still in force. At the same time the public utilities commission has some control over the beginning of new public utility services. No public utility company may begin the construction of any new plant or equipment which IS not in substitution of an existing plant or equipment or an addition or extension thereto, until it obtains from the commission a certificate of public convenience and necessity. The public utility com- mission also succeeds to the power of the railroad and warehouse com- mission (under the warehouse law) to issue licenses to public ware- houses ; and it is also specifically authorized by the public utility law to hear and determine applications for the cancellation of warehouse licenses. Reports and Accounts. The commission has power to establish a uniform system of accounts for public utilities (or a uniform system for each class of public utilities), and to provide for the forms of accounts to be kept by public utilities. It may provide for the examination and audit of all accounts; and the officers and employees of the commission have authority to inspect and examine the books, accounts, papers and memoranda kept by such public utilities. Each public utility is required to furnish to the commission annual reports, in the form and with such information as the commission may prescribe; and the commission may also require monthly and other periodical and special reports. Capitalzation and Intercorporate Relations. The power of public utilities to issue stocks, bonds, notes or other evidences of indebtedness is declared to be a special privilege, subject to supervision and control by the State. The purposes for which stocks, bonds, notes and other indebtedness may be issued are defined ; and such issues (except notes for not more than twelve months) must first be authorized by order of the commission, made after a hearing and such additional inquiry and examination as the commission may deem of assistance. When deemed necessary, the commission shall make an adequate physical valuation of the property of the commis- sion before issuing its order; and the commission has power to ascer- tain the value of the property of every public utility in the State, and to make revaluations from time to time. The capitalization of a merger or consolidation is also subject to the approval of the commission. Operating contracts between public utilities and purchases, leases, mortgages, and mergers as to their franchises, licenses, plant or other property must also receive the consent and approval of the commis- sion granted on petition, and, if deemed necessary after a hearing. In its order the commission may attach such conditions as it deems proper. Control over Rates and Service. All rates or other charges and all rules and regulations by public utilities must be just and reasonable; and adequate, efficient, just and reasonable service and facilities must be provided and maintained. No preference may be granted to any person or corporation in rates, serv- ices or facilities; and no unreasonable differences may be made as between localities or classes of service. Schedules of rates and classifications must be filed with the com- mission by every public utility ; and such schedules must be published and posted. Unless otherwise ordered by the commission, no change in rates, classifications, rules or contracts may be made without thirty days notice; and no increase in rates may be made except upon find- ing by the commission that such increase is justified. Any schedule or rate may be suspended pending a hearing by the commission. The commission has power to determine just, reasonable or sufficient rates, classifications, rules, or contracts, when it finds after a hearing had upon its own motion or upon complaint any of these to be unjust, unreasonable, discriminatory or preferential. The com- mission may also, after a hearing, order the establishment of through routes by two or more common carriers, and may fix joint rates for all classes of public utilities ; and it has power to fix reasonable rates, rules and regulations regarding demurrage, storage, switching and other charges incident to the transportation of property. It may also investigate inter-state rates, and may apply to the Inter-state Com- merce Commission for relief from excessive, discriminatory or illegal rates. After a hearing, the commission may order any public utility to make reasonable additions, extensions or improvements to its plant, equipment, or facilities, and may require reasonable, safe, adequate or sufficient rules, practices, services and methods. More specifically It may require side track connections, track connections, telegraph and telephone connections and the joint use of property or equipment. The commission has power to determine for each kind of pub- lic utility suitable standard commercial units of service, product or commodity, to provide reasonable regulations for examining, measur- mg and testing such service, product or commodity, and to examine and test the service, product or commodity of any public utility. Public utilities are required to report accidents to the commission, which is required to investigate accidents and the commission has power after a hearing, to establish standards of equipment and to order the use of appropriate safety appliances. It also has power after a hearing to abolish grade crossings; and no new grade crossings may De constructed without the permission of the commission. Methods of Procedure. As a basis for its work, information as to public utilities is received by the commission by periodical and special reports and by I 740 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 741 ^■i^ schedules of rates and regulations filed with it as prescribed by law. Problems calling for special action are called to its attention by peti- tions or applications for certificates of convenience and necessity and for approval of stock and bond issues, by reports of accidents and by complaints. In addition to the data secured by these means, the commission is given extensive powers to make inspections and examinations and to hold investigations, inquiries and hearings. These may be carried on by the commission, or by any of the commissioners, or by an authorized officer or agent of the commission ; all of whom have power to administer oaths, issue subpoenas, and compel the attendance of witnesses and the production of books, accounts and documents. Formal hearings are required before orders and decisions may be made on certain matters ; and for such hearings notice of the time and place must be served on the public utility, any complainant, and such other interested parties as the commission deems necessary. Pro- vision is also made for a rehearing in any case, and for modifications of the order or decision of the commission. Appeals and Penalties. Appeals from rules or decisions of the commission may be taken to the circuit court of Sangamon County to determine its reasonable- ^ ness or lawfulness; and from the circuit court appeals may be taken ' directly to the Supreme Court by either party to the action. The conditions under which such appeals may be taken are regulated by the act, as to time, notice to the commission, the admission of new evidence and the suspension of the order of the commission pending judicial proceedings. The finding of the commission as to questions of fact shall be held to be prima facie true, and "a rule, regulation, order or decision of the commission- shall not be set aside unless it clearly appears that the finding of the commission was against the manifest weight of the evidence'* or that it was without the jurisdic- tion of the commission. The commission is authorized to commence mandamus or injunc- tion proceedings to enforce obedience to the law or to the orders, rules or requirements of the commission. Specific penalties are provided in the act for the violation of many of its provisions ; and general penalties are authorized for viola- tions or failure to comply with any other provision of the act or the orders, rules and requirements of the commission. Such penalties are authorized against public utilities or any corporations, their ofificers, agents or employees and other persons. Such penalties include fines and, in the case of individuals, imprisonment. It is also provided that stocks and bonds issued or inter-corporate agreements made without the approval of the commission shall be void. Staff and Organisation. The staff of the Public Utilities Commission in August, 1914, was as follows: 5 Members of the Commission @ $10,000 $50,000 Chief counsel 6,000 Secretary 5,000 Chief engineer 6,000 Chief accountant 5,000 First assistant counsel 4,000 Two assistant counsels @ $3,000 6,000 Consulting engineer 3,600 Assistant chief engineer 3,000 Electrical engineer 2,700 Three private secretaries @ $2,400 7,200 Auditor 2,400 Telephone expert 2,500 Two assistant engineers 3,200 Two safety appliance inspectors 3,500 Chief of service department 2,400 Rate clerk 1,800 Clerk 1,560 Assistant auditor 1,500 Assistant accountant 1,200 Investigator 1,500 Clerk service department 1,200 Four reporters @ $1,200 4,800 Three stenographers @ $1,200 3,600 Ten stenographers @ $900 9,000 Two stenographers 1,780 Four file clerks 3,940 Statistical clerk 1,200 Two janitors and messengers 1,800 Information clerk 780 Copyist , 900 Mail and phone clerk 720 The office of the Chief Accountant and Statistician is divided into four divisions, namely: Accounting department. Statistical department. Rate and tariff department for transportation companies. Rate and tariff department for other public utilities. The Engineering Department is organized in the following divis- ions: General office. Railroad department. Gas department. Electrical department. Telephone department. Service department. Up to August 11, 1914, there had been 801 formal cases placed on the docket of the commission, and 319 cases had been handled informally. Receipts and disbursements from the State treasury from Jan- uary 1, to September 30, 1914, on account of the Public Utilities Com- mission were as follows : Disbursements: State officers salaries $ 44,545.37 Other salaries and expenses 86,232.26 p . Total $130,777.63 ^^^^ms 151,898.63 m > 742 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 743 1 "I GRAIN INSPECTION.- Article 13 of the State Constitution of 1870, besides defining and regulating public warehouses, also provides that "the general assembly shall pass laws for the inspection of grain." By an act of 1871 a grain inspection and registration service was provided in connection with the railroad and warehouse commission, which was authorized to adopt rules and fix charges for inspection. This act has been amended and supplemented by later acts, in 1873, 1883, 1897, and 1907. Under the public utility law, the public utility commission suc- ceeds to the powers and duties of the railroad and warehouse com- mission ; but in other respects the laws relating to grain warehouses and the inspection of grain remain in force. Under these laws the public utility commission issues and may cancel licenses to public warehouses and has power to make all proper rules and regulations and charges, and to establish grades for the inspection of grain; to appoint a warehouse registrar and assistants, and to prescribe their duties and compensation and exercise general supervision over them; and to appoint a committee on appeals of three persons each year, to hear and decide appeals from the chief grain inspector or any deputy. The warehouse law fixes maximum rates for storage and handling of grain, and provides for the examination and test of grain and scales. It also regulates the rights and liabilities of warehousemen, and the issue and transfer of warehouse receipts. The Chief Inspector of Grain is appointed by the Governor, with the advice and consent of the Senate, for a term of two years. This officer is charged with the general supervision of the inspection of grain under the advice and immediate direction of the railroad and warehouse commission, with authority to appoint deputy inspectors, upon the approval of the commissioners, and with supervision over all deputy inspectors. The office of the chief inspector of grain is in Chicago, where the principal work of the department is done. The staff at this office, as provided in the appropriation of 1913, is more than 100 persons, mcluding 21 supervising and deputy inspectors, 25 samplers, 23 helpers, 25 clerks and stenographers. Other offices are maintained at East St. Louis, Joliet, Kankakee, and Decatur. The appropriation of 1913 provides for 11 persons in the East St. Louis office; 2 at Decatur, and 1 each at Joliet and Kankakee. ^ The annual report of the grain inspection department deals almost entirely with the work of the Chicago office. Even for this, the text of the report is contained in a few pages, giving summary statements of inspections and finances, for which detailed tables are appended as exhibits. In recent years, a brief report from the deputy chief inspec- tor at East St Louis, with statistical tables, is printed as an exhibit to the Chief Inspector's report. No reports are presented from the other branch offices ; and these offices are not even mentioned, except in one report, for the year 1910. Up to 1911 the expenses of the grain inspection department were paid from the fees and charges for inspection and weighing. Under act of 1911, the collections are paid into the State Treasury and sal- aries and expenses are paid out under appropriation by the General Assembly. Under the former system the collections usually exceeded the expenses; but in some years the expenses were larger than the collections for the same year, the difference being paid out of the accumulated balance. The following statements show the financial operations of the department for selected years: COLLECTIONS AND DISBURSEMENTS OF GRAIN INSPECTION DEPARTMENT. Chicago. Year ending October 31 Collections Disbursements Balance 1871 $ 19,760.24 ' $ 12,020.71 $ 7,739.53 1881 89,074.35 97,779.48 12,917.38 1891 112,505.92 118,176.89 55,621.85 1901 121,060.23 141,130.65 56,381.16 • Surplus or Deficit 1910 152,369.08 170,591.12 -18,222.04 8 months ending June 30, 1911 124,617.17 118,614.27 6,072.90 12 months ending June 30, 1912 176,679.99 157,815.87 18,864.12 East St Louis. 12 months 1910 •....$ 26,388.07 $ 22,835.23 $17,289.84 8 months 1911 8,681.81 12,116.83 13,854.82 12 months 1912 13,990.66 17,133.77 auditor's REPORT.. Receipts Warrants issued July 1, 1911, to Sept. 30, 1912: Chicago $256,565.59 $197,593.44 East St. Louis 27,873.48 21,368.47 October 1, 1912, to Sept. 30, 1914 348,531.34 391,840.18 Appropriations for the grain inspection department in 1911 and 1913 are shown below: 1913 1911 Chicago Office. Per annum Total Total Inspectors $45,750 $ 91,000 $ 86,500 Clerks and Stenographers 38,230 76,460 77,600 Registrar, Cashier, and Auditor 6,750 13,500 11,000 Messengers, etc 5,160 10,320 10,320 Samplers and Helpers 54,840 109,680 99,900 Appeals Committee 3,600 7,200 7,200 Rent and Light 9,000 18,000 18,821 Other Expenses 38,417 27,500 Total $364?577 $338,841 East St. Louis. Inspectors $10,200 $20,400 $20,400 Registrar and Clerks 3,300 6,600 6,600 Helpers 3,240 6,480 5,610 Rents 1,000 Office Expenses 1,200 2,400 2,200 Total $35,880 $35,810 I 744 EFFICIENCY AND ECONOMY COMMITTEE. I) I; Decatur. Inspector and Helper $ 2,520 Joliet. Deputy Inspector 900 Kankakee. Deputy Inspector 1^200 Total Grain Inspection Department $ 5,040 1,800 2,400 $409,697 $374,651 I «i ! - V. CORPORATION COMMISSIONS IN OTHER STATES. Most of the states have provided for the administrative control of corporations by means of a number of separate offices and bureaus, as in Illinois. The registration of new corporations is usually under the Secretary of State. Every state has a banking and msurance office. In most of the larger states, there are separate bank and insurance commissioners; but in a number of the states the functions of one or the other of these offices are attached to one of the older classes of elected state officers, — as the auditor, secretary of state, or state treasurer. Nearly all of the states have also established one or more boards for the control of railroads and often of other public utilities. Massa- chusetts had for a time three commissions for different classes of public utilities, — railroads, lighting plants, and telephone and telegraph companies. New York State has two public utility commissions, one for New York City and the other for the remainder of the state. But some twenty states now give a large power of regulation and control over all or most classes of public utilities to a single commission,— as the Railroad Commission of Wisconsin; the Public Utility Commis- sion of Illinois, and the Corporation Commission of Oklahoma. In Virginia and North Carolina, the public control of corporations of all kinds has been more thoroughly concentrated in the hands of a single corporation commission in each of these states. Virginia Corporation Commission.^ The Virginia Corporation Commission was created by the State Constitution of 1902. It consists of three members appointed by the Governor, subject to confirmation by the general assembly in joint ses- sion, for terms of six years, one member retiring every second year. The constitution provides that this commission is the department of government for the creation, visitation, supervision, regulation, and control of corporations chartered by or doing business in the state. Ine constitution further provides, in considerable detail, for the authority of the commission over transportation and transmission com- panies, including the power to prescribe rates ; and for the adminis- trative procedure before the commission and for judicial review of its aecisions. By the constitution and statutes, the commission is also made a board of tax assessors for certain classes of transportation and transmission companies. It is further provided by the Constitution of 1902 that banking and other bureaus may be established within the department of the state corporation commission. In 1906 a bureau of insurance was ff^abhshed under the supervision and control of the corporation com- l-199^ao:2)f" ^^"^ Review, vol. 38; 481 (1904). John Hopkins Univ. Studies, vol. 80; I 746 EFFICIENCY AND ECONOMY COMMITTEE. mission; but the commissioner of insurance is elected by the general assembly for a term of four years. This bureau issues licenses and certificates of authority to insurance, guaranty, trust and insurance companies; it receives reports and has power to make examinations. It also receives reports of fires, and makes investigations into the causes of fires. Since 1907 the corporation commission has received financial statements from state banking institutions. In 1910 the commission was given power to appoint a bank examiner and assistants, who make at least an annual inspection of state banking institutions, and of national banks which are state depositaries. North Carolina Corporation Commission. This commission is constituted as a court of record of three com- missioners, elected for six years, one at each biennial election. It selects its own chairman and appoints a clerk and other assistants. The commission has general supervision over transportation, telegraph and telephone companies, all public and private banks, all loan and trust companies, and all building and loan associations. It has power to prescribe rates of transportation and transmission companies and appoints bank examiners. Under other acts, the Corporation Commission is also created a board of State Tax Commissioners and a State Board of Equaliza- tion, with general supervision of the system of taxation throughout the state, and also assesses corporations for taxation. VI. SUMMARY AND RECOMMENDATIONS. The following table summarizes the present laws as to the charter- ing, admission and supervision of corporations in Illinois : Class of Corporation Chartered by Supervision by General Corporations Secretary of State Secretary of State Banks and Building and Loan Associations Trust Companies Railroads Gas, Elec. Light, etc. Corporations not for Profit Cooperative Associations Educational Institutions Free Public Libraries Cemetery Associations Foreign General Corporations*Secretary of State Pawner's Societies Secretary of State Wage Loan Corporations Secretary of State Title Guarantee Companies Secretary of State Insurance Companies — ex- cept Assessment Life and Accident Insurance Companies — As- sessment Life and Acci- dent Auditor of Pub. Accts. Pub. Utilities Comn. Pub. Utilities Comn. Auditor of Pub. Accts. Auditor of Pub. Accts. Secretary of State Secretary of State Secretary of State Secretary of State Secretary of State Secretary of State Secretary of State Secretary of State Insurance Supt. Governor Governor County Court Secretary of State Auditor of Pub. Accts. Auditor of Pub. Accts. Auditor of Pub. Accts. Insurance Supt. Secretary of State Insurance Supt. •Admitted by. RECOMMENDATIONS. f fi!* ^^^ granting of charters and the supervision of corporations, ot the same class after formation should be entrusted to the same authority. tn • ^^ ?, "tatter of economy, it is obvious that all the records relating: II ^"^^^Y^^^"^^ corporations and to particular classes of corporations bnouid be housed in the same quarters, saving space and facilitating of Ti, ' *^°^^ wishing to consult the same. Moreover, division I authority necessitates two groups of experts, those who look up and .^^""P^^^l^ons and corporation law at the time of incorporation. lu tnose who are entrusted with the work of supervision after incor- \Z T^' /^js evident that the work of supervision would become the n .^" 1 '"^ *^^ ^^"^^ °^ ^^°^^ ^^° ^^^ become familiar with Danprc i^^ ^^^^ ^^ corporation through passing on the original in ., •". ' furthermore, it is still more evident that those enraged of ^^ZV^'^'S are the best judges of the desirability and propriety granting authority to solicit stock subscriptions to a new group > 748 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 749 of promoters. For instance, the Insurance Superintendent is in a better position effectively to administer the law relating to the forma- tion of new insurance companies than any other branch of the State government, because of the experience gained in the work of super- vision. In other words, experience in supervision is almost, if not quite, necessary in order to properly determine whether a new propo- sition is in reality, as well as in form, promoted to fulfill a lawful object. The adoption of this principle would necessitate a revision of the corporation law by transferring the control of incorporation from the Secretary of State's office to the office having supervision in the following cases : Trust Companies — from Secretary of State to Auditor. Railroads and Public Utilities — from Secretary of State to Pub- lic Utilities Commission. Title Guarantee Companies — from Secretary of State to Insur- ance Superintendent. Pawner's Societies and Wage Loan Corporations — from Secretary of State to Auditor. Participation in Certificate of Assessment Life and Accident— from Secretary of State to Insurance Superintendent. On the other hand, the supervision of educational institutions, free public libraries and cemetery associations, now chartered by the Secretary of State and supervised by the governor. and the county courts, should be transferred from the latter authorities to the Secre- tary of State. 2. All varieties of a general class of corporations should be entrusted to the same authority. This principle of effective supervision is generally observed— and where not observed is evidently the result of an accident. The supervision of title guarantee companies should evidently be under the Insurance Superintendent, not under the auditor, thus bringing all forms of insurance under that office. 3. The law relating to the formation of corporations, including special classes as well as the general corporation should be revised and codified. The law relating to corporations is the result of a series of laws passed about the time of the adoption of the present Constitution in 1870. Thus the basis of the Insurance law dates from 1869 — the general corporation law from 1872 — the banking law from 1885; but in addition to the general act in each case there are a considerable number of amendments and additions that have been passed from time to time as occasion has demanded. Some of these are In harmony with the general law ; some are not. Revision would not only furnish the opportunity of eliminating inconsistencies, but would make the law simpler and, therefore, more easily understood by those who are con- ducting business under its terms. It has already been noticed that in forming an Illinois corpora- tion the promoters are required generally to submit their proposition to an official examination before soliciting subscriptions to the capital stock. To this general rule there are some exceptions, the most no- ticeable being the case of railroads. In the revision the process of formation should be made uniform for all corporations except those that are not incorporated for profit. 4. The granting of charters and the supervision of corporations should be centralized and entrusted to some one general authority or department. Illinois has at the present time the foundation for a most efficient system of corporate supervision. The method of grant- ing charters Is not only quite unique, but is founded upon correct principles. Moreover, It Is, with few exceptions, uniform for all kinds of corporations. In the case of banks, building and loan associations, and insurance companies, the supervision over the incorporation is at the present time fairly efficient. This results from the fact that : (1) The charter granting authorities: viz, the Auditor of Public Accounts and the Insurance Superintendent are responsible for effec- tive supervision after incorporation and (2) each office is equipped With traveling examiners who are In a position to make more than a formal investigation into the character of the proposition which it is proposed to incorporate. The work of the Secretary of State is in this particular, far from efficient. This is due to two conditions— (1 ) the office is not and never has been properly manned to secure effective supervision, and (2) it has been held as a general principle that any body of individuals ought to be allowed to incorporate for any lawful purpose at any time. This theory is the outgrowth of the unfortunate conditions attending the granting of charters by special legislation. Under that system it was assumed that it was incumbent upon the incorporators to show cause why they should be granted a charter, and in too many cases there were charges of fraud and cor- ruption ; as a result constitutional provisions against the granting of special charters were adopted in 1848 and 1870. A second result was the development of the theory that any group of men, whether respon- sible or irresponsible, might apply for a charter under the general incorporation act and be granted the same without question. In me case of corporations formed under the general law this practice still prevails. In the case of banks, insurance compan- ies, railways and other public utility corporations it is generally recognized that the State through its proper officers has not only me right, but also is under a duty of protecting both the legiti- mate investors and consumers of the products against fraudulent pro- motions or uneconomic propositions. Gradually it is coming to be recognized that the State has an indirect, if not a direct. Interest in the jormation of general corporations. This theory is recognized in the ^iiinois law in the provision that any group of men desiring to form a corporation must first obtain permission from the proper authority fnrm ^^'^r^^^'"^ 1^^ ^^^^^ '^ authorized to see that each new project is ormed for a lawful purpose. He Is, however, not in a favorable position under the present organization of the office to see that the 1 int ot the law is complied with in all cases. It, of course, would uu largely to the expense of supervision, but the fees received even sunlr?-^-'*^^^?* ^""^ ^""^ ^"^^^y sufficient to provide for an effective Pervision during the period of incorporation. The results of the I 750 EFFICIENCY AND ECONOMY COMMITTEE. SUPERVISION OF CORPORATIONS. 751 adoption of such a policy would be: (1) The elimination of most fraudulent promotions before the solicitation of subscriptions to the capital stock began — (2) The restriction of the investment of cor- porate funds to those fields of business enterprise where there is an opportunity for legitimate industry — (3) The establishment of con- fidence in the general corporate enterprises, such as exists in the case of national or state banks. It is hardly necessary to call attention to the enormous waste of capital as a result of fraudulent promotions. The Postmaster Gen- eral of the United States in his annual report for 1911 estimates the annual loss at over $77,000,000. Illinois is in a position to become a leader in a movement to pre- vent a part of this annual waste of capital, by proper supervision of the period of promotion. It is generally recognized that it is a proper function of the State to prevent the duplication of public utility propositions in communi- ties already supplied. While it is not likely that the State will feel called upon to take similar precautions in general business activ- ity, it is clearly in conformity with the spirit of our corporation act to see to it that only propositions projected for legitimate business activities be authorized to solicit subscriptions from the citizens of the State. And in this connection it would be well to write into the general corporation act the clause of the banking act that requires an estab- lished character on the part of the promoter as a prerequisite to the solicitation of funds. Such supervision as would be required to ensure that the promoters be men of established character and the project be at least reasonable in its purpose would mean a large annual saving to the legitimate capital resources of the State. It is patent to every careful observer that the development of our resources through corporations is hampered and delayed by a feeling on the part of the average man that any investment in corporate stock is like throwing good money into the sea. And in this feeling he is to a certain extent justified. The legal safeguards surrounding the investment in corporate securities are amply sufficient to protect him, when they are enforced. But the fact is that the so-called safeguards are safeguards in form only; the best that the defrauded stockholder can do is to assist the State in placing the corporate criminal in penal confinement for a time. That, however, does not restore the wasted capital. To repeat, the State of Illinois has in her corporate law a unique opportunity to extend her administrative machinery so that the legiti- mate investor would be protected and the honest projects would be fostered and developed. Attention at this point may properly be called to the "Blue Sky" legislation of many of our neighboring states. Such legislation ought to be unnecessary and would be unnecessary if proper supervision of the issuance of securities was provided by each state. The justification of state supervision of the issuance of corporate securities is found in the favors granted the corporate stockholders. They are given limited liability and in return for this special favor are expected to issue full paid stock and fu^^ paid only. In too many cases the stock is issued as fully paid when it represents nothing but water. Even worthless securities are foisted upon the public and in turn the public demands blue sky legislation and state approval of the securities offered for sale. However, as in many similar cases, the proper place to begin to reform is at home, by seeing to it that all securities issued by domestic corporations are what they purport to be, viz. : the representatives of real assets, dollar for dollar. After incorporation sufficient supervision should be main- tained to see that the law relating to the declaration of dividends out of surplus profit only, is observed. Such supervision would render blue sky legislation entirely unnecessary. (5) The general department should be organized into divisions, each of which should have supervision under the general direction of the department, of a particular branch of the work. These divis- ions might very well preserve to a certain extent the present organi- zations, with the exception that the general control would be com- bined in one department. As a tentative plan the following may be suggested : (a) General Corporations. (1) Incorporation of domestic corporations. (2) Admission of foreign corporations. (3) Annual reports. (b) Banking, Trust Companies, Building and Loan Associations, etc. (1) Incorporation of domestic corporations. (2) Admission of foreign corporations. (3) Annual reports. (4) Examinations. (c) Insurance. (1) Incorporation of domestic corporations. (2) Admission of foreign corporations. (3) Reports. (4) Examinations. (5) State Fire Marshal investigation. (d) Public Utilities. (1) Incorporation of public utilities companies. (2) Admission of foreign companies. (3) Reports. (4) Examinations. (5) Rates. (6) Service. (7) Securities. It is possible that an organization by functions might prove of advantage ; such an organization is outlined below : (a) Incorporation. (1) General corporations. (2) Banks and trust companies, etc. (3) Insurance companies. (4) Public utilities companies. (b) Admission of Foreign Corporations. (Arranged by classes.) (c) Reports and Examinations. (By classes.) (d) Securities. (1) Supervision of issues. / £2) Deposits— as regulated by law. (e) Rates and Services. (1) Public Utilities. (2) Insurance Companies. 752 EFFICIENCY AND ECONOMY COMMITTEE. (6) The following alternative plans are suggested ' for consider- ation in organizing the proposed department : (a) A Corporation Commission of five members, taking the place of the Public Utilities Commission, to exercise all the powers of the Public Utilities Commission, and in addition to have supervision over the commissioners of general corporations, banks and insurance. The supervisory powers should include power to approve and prescribe forms for accounts and reports, to approve and issue general regula- tions, to review or decide appeals from decisions of the division super- intendents, and to order specific investigations. (b) A Corporation Commission of five members, one to be chairman, one commissioner of general corporations, one banking com- missioner, one insurance commissioner, and one public utilities com- missioner, the Commission as a body to exercise supervisory powers over the individual commissioners. Two or more deputy public util- ity commissioners to conduct investigations and hearings, and to act with the public utility commissioner as a board in making orders and decisions. (c) A Corporation Commission of three members, one to be chairman, one banking and insurance commissioner and one public utilities commissioner, to exercise supervisory powers as in (b). The public utility commissioner to have three deputies, to conduct investi- gations and hearings, — orders and decisions to be made by the chair- man of the central commission, the public utilities commissoner and deputies acting as a board. The chairman to have direct charge of the division of general corporations. (d) A Secretary of Corporations as head of the department, and to act as chairman of (1) the corporation commission, to include the commissioners of general corporations, banks and insurance, and (2) the public utilities commission, to include two or four members in addition to the secretary. (e) The Chairman of the Public Utilities Commission to be designated as head of the department, with specified powers of super- vision over commissioners of general corporations, banks and insur- ance, leaving the public utilities commission with its present organiza- tion and powers. 1^1 > A REPORT ON STATE ADMINISTRATION OF PUBLIC WORKS. PARKS AND BUILDINGS ffil BY C. O. GARDNER I i Ir 1l s I i . CONTENTS Introduction , 757 I. HIGHWAYS 757-772 A. Historical Introduction 757 Local Administration 757 State Administration 760 B. The State Highway Commission '. . . 761-766 1. Organization 761 2. Functions 761 Assistance to Local Officials 761 Investigation and Experimentation 762 Control over State Highway Officials 763 State Aid Roads 763 3. Engineering Staff 765 C. County Superintendent of Highways 766-768 1. Organization 766 2. Functions 767 State Aid Roads 767 County Roads and Bridges 767 Local Roads and Bridges 767 D. Local Highway Administration 768-770 1. Highway Commissioners 769 2. Clerk of Highway Commissioners 769 3. Treasurer 769 E. Methods of Financing Highway Administration 769 F. Summary and Conclusions 770 TI. WATER RESOURCES 773-799 A. General Remarks 773-774 B. Illinois and Michigan Canal Commissioners 774-783 •1. Introduction 774 2. Organization 774 3. Powers, Duties and Methods of Procedure J75 4. Finances '. '' ' 5. Summary and Conclusions 781 C. Rivers and Lakes Commission 783-796 1. Introduction 783 . Historical Summary 783 Local Authorities 784 Drainage Officials 784 Municipal Authorities 784 Park Boards 785 Internal Improvement Commission 785 Submerged and Shore Lands Investigation 786 2. Organization 786 3. Powers and Duties 786 Collections and Publication of Information 787 Supervision of Local Improvements 788 Preparation of Plans for Improvement 788 Prevention of Pollution of Streams 788 Assistance and Advice in Reclamation Projects 788 Prevention of Encroachments 789 Hearings and Opinions , 789 Levee Construction 790 4. Work and Procedure 790 5. Finances 792 6. Relations to other Officials 793 7. Summary and Conclusions 795 Comments and Suggestions 796 ^- General Summary 797 MM iiiiii pi| I I ■I ni. FISH AND GAME CONSERVATION COMMISSION 799-808 1. Introduction ^qq Fish Legislation .,......,, 700 Game Legislation oa? 2. Present Organization ',','/, on} 3. Powers and Duties *.*'[ gni Enforcement of Fish and Game Laws!!.! 802 Conservation of Fish and Game !!!!!!!!!! 802 Reports to Governor 803 Wardens and Deputies !!!!!!!!!!!!!!!!!! 803 4. Administration ! ! oa^ Aministration of Fish and Game Laws!!!!!!!!!!!!!! 804 Fish Rescue and Distribution ! ! * " * 804 Fish Preserves : on* Fish Hatching !.!!!!!!!! 804 State Game Farm [ onr 5. Relation to other State Functions !!!!!!!!!!! ! ! 805 6. Comments oq^ IV. STATE CONTROL OF NATURAL RESOURCES 808-836 Early Local Administration 808 Scientific Investigation of Natural Resources!!!!!!!!! 809 State Control of Fish, Game and Forests ' 809 State Control of Water Supply and Drainage !!!! 810 Character of State Authorities 812 ITP^^'L: •••••• 812 1 abular Statements 814 Purposes of State Control of Water and* Natural*!!!!!!!!!! 814 State Control Arranged by States and Agencies 816 State and National Control Arranged by States and Pur- poses of Control 819 State and National Control Arranged by State and National Agencies and Purposes of Control 820 V STATE PARKS 836-839 A. Development of Parks 836 1. Local Authorities !!!!!! 836 2. State Parks !!!!!!!!!!!!!!!!!!!! 836 B. Illinois Park Commission !!!!!!!!!! 837 C. Fort Massac Park Trustees !!!!!!!!!*!!!!!!!! 838 D. Comments !!!!!!!!!!!!!!!!!! 838 VI. PUBLIC BUILDINGS AND MONUMENTS 839-863 A. Construction of Public Buildings 839-847 • 1. Construction by Special Commissions ! ! ! ! 839 2. State Architect ! 840 Organization !.!!!!!!!!!!!!!!!!! 840 Powers and Duties !!!!!!!!!!!!!!!!!!! 841 Administration ! ! ! 841 3. Public Architects in U. S. and in other States !!•!!!!!!!!!! 843 4. State Art Commission !!!! 847 B. Control of Public Buildings ....*. 847-856 1. Public Buildings in Springfield *.*.'.*. 847 2. State Offices in Chicago ! 849 3. Control of Public Buildings in other States!!!!!!!!!!!! 854 C. Public Monuments and Memorials 856-859 Lincoln Monument \\\\ ' \ 856 Lincoln Homestead !!!!!!!!!. 856 Miscellaneous Monuments and Memorials! !!!!!!!*!!!!!!!! 857 D. Summary and Suggestions 859-863 1. Architect's Office '.*.!*.!*.!!!!!!!!!! 860 2. Art Commission !!!!!! 861 3. Control of Public Buildings . . ! ! ! ! !!!!!!!!!!! 861 4. Monuments and Memorials !!!!!!!!!!!!!!!!!!!! 862 VII. GENERAL SUMMARY AND RECOMMENDATIONS 863-865 A REPORT ON STATE ADMINISTRATION OF PUBLIC WORKS, PARKS AND BUILDINGS By C. O. Gardner. INTRODUCTION. In this report it is proposed to examine the several State officers and boards w^hose functions relate to the construction of public w^orks and the conservation and care of public property and resources. This will include the authorities dealing vi^ith highv^ays, water resources, fish and game conservation, public buildings and monuments, and State parks. At first sight, this may seem a somewhat heterogeneous group of officials, some of whom have little relation to the others; and it may be admitted that the active relations at the present time are less important than in the other groups investigated for the Efficiency and Economy Committee. But the haphazard and irregular development of State administration prevents any more satisfactory grouping to carry out the general purpose of the Committee for a comprehensive scheme of reorganization into a limited number of important depart- ments. Examination will perhaps show that the interrelations and sim- ilarity of functions are closer than is usually realized; and they are at least more important than is found, for example, among the various bureaus of the United States Department of the Interior. I. HIGHWAYS. A. HISTORICAL INTRODUCTION. Local Administration. The administration of highways in Illinois has been regarded, from the beginning, almost exclusively as a local function. The con- stitution of 1818 provided for tiie election of three commissioners within each county who were given general jurisdiction over the affairs of the county, including the highways. Under an Act of 1819 the county commissioners' court was vested with authority in all cases with respect to the public roads, canals, turnpikes and toll bridges; and thereafter from time to time their powers were increased. They appointed the road supervisors within the county, let contracts for the construction of roads and bridges, granted licenses to individuals and corporations authorizing the construction of toll bridges and turn- pikes, levied road taxes, fixed prices of labor on the roads and the use of teams and performed various other supervisory functions. The commissioners also located new roads and altered or vacated old ones Oil petition of a certain number of the voters within the district. State roads were created and changed by the State legislature but the duty of maintaining them fell upon the county.' Thus the county was the unit m the highway service. I «|nj3i 'I 758 EFFICIENCY AND ECONOMY COMMITTEE. Actual administration of the highways, however, was vested in smaller units within the county, subject to control by the county author- ities. Under the Act of 1819 the commissioners of the county were authorized to appoint within each township a suitable number of road supervisors. By an Act of 1825 the county commissioners were required annually to divide the county into road districts and to appoint one supervisor for each district. The compensation provided for the supervisors varied from time to time. The supervisor had general charge of the upkeep of roads and bridges and the erection and care of sign posts. It was his duty to muster the able-bodied men within his district for labor service on tlie roads. He hired additional labor when necessary, acted as overseer of road laborers, and purchased wood, gravel and other materials neces- sary for improvement of the roads. Under an Act of 1825 the super- visor was made the collector of the road tax within his district, and was authorized to pay out money for labor and materials. In 1849, how- ever, the function of collecting the road taxes was transferred to the county collector. The only form of financial control exercised over the supervisors was found in an Act of 1831 which required an annual account (not necessarily written) to be submitted to the county com- missioners showing receipts and expenditures for the year, if tliere was a balance at the end of the year it was paid over to the county commissioners. At irregular intervals appropriations were made directly by the Sta*- for the construction of particular roads and bridges, but there was little attempt to furnish systematic aid for this purpose. The Gene-al Assembly frequently authorized private individuals or corpora- tions to construct bridges or turnpikes and charge tolls for their use. Road ':onstruction and improvement was commonly financed by levy- ing a labor poll tax. A property tax for road purposes was first authorized in 1825, but the taxable was privileged to substitute dav labor m place of cash payment if he so desired. Taxable realty owned by residents of the county was assessed by the county commissioners at a rate not exceeding $1.50 per $100 valuation. Later personal oropertv was also made subject to assessment for road purposes. In 1827 ihe general property tax for road purposes was abandoned, but was aj^ain authorized in 1831, with a limitation of one day's labor Cequiva^ent to fifty cents) for each $100 of property. Four years later (^835) in a comprehensive road law, the maximum rate was again changed, as it has been from time to time since ; and the general property tax has continued to be used as an increasingly important means for financing road construction and repair. Under the constitution adopted in 1848 some important changes were made in the organization and administration of the highways. The former powers of the county commissioners were transferred to a county court, composed of a county judge and two justices of the peace elected for four years. This court thus assumed the jurisdic- tion over the roads formerly exercised by the county commissioners. However, for counties that elected to organize under the township form of government a still more decentralized system was provided by an act of 1849. .Public roads then existing were declared to be public PUBLIC WORKS, PARKS AND BUILDINGS. 759 highways of the town in which they were situated, and authority over the same was vested in a board of highway commissioners, consisting of three persons elected annually at the town meetings. In 1861 the tenure of office was increased to three years and one com- missioner elected each year. The commissioners were given general supervisory control over the construction of roads and bridges, issued directions concerning the alteration and regulation of the highways, and were generally responsible for their upkeep. They had, however, no power over State roads. They were required to render an annual written account to the board of town auditors (consisting of the super- visor, clerk and justice) showing the total assessment of labor for the year, the amount of labor performed, sums received from fines and commutations and a statement of the necessary improvements and the probable expense of the same beyond what might be anticipated from labor and the regular road taxes. The commissioners, furthermore, had the authority to lay out new roads and alter or vacate existing roads on petition of twelve voters of the community interested. When alterations were proposed the commission conducted a personal examination, gave hearings and rendered a decision. Rewards for damages were subject to appeal from the commissioners to the board of supervisors of the county. The highway commissioners thus acted in a broad way as the local legislative authority on roads. They divided the towns into con- venient districts for administrative purposes and assigned laborers to each of the districts. The actual administrative officers within the towns were known as overseers of highways, one of whom was chosen at the regular town meeting for each road district in the township. The overseers executed the orders of the highway commissioners, acted as foremen of the road gangs and were generally responsible for the work of construction and maintenance of the highways. In 1859 the principle of decentralization, which formed such a conspicuous part of the legislation described above, was carried a step further by an Act vesting in the board of county supervisors entire control over the State roads in their respective counties with power to re-locate or vacate at their discretion. In counties without the township system similar powers were vested in the county courts. The system above described applied only to those counties that adopted the township form of government. In other counties previous laws remained in force with local supervisors for the road districts appointed by the county courts. In 1872 an Act of the General Assem- bly provided for elective highway commissioners to supersede the appointed district supervisors in such counties, thus making the organ- ization of the highway service practically uniform throughout the State.^ This law was repealed in 1873;^ but the principle of locally elected highway commissioners for counties without township govern- nient was embodied in a later Act passed in 1887, which remained in lorce until 1913. The county boards of such counties were authorized t>y the law of 1887 to divide the county into districts approximating ^Session Laws, 1871, p. 680. The Act also provided for the substitution of a single commission for the commission of three in counties with township government. 'By an act of April 18, 1873. \ 760 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 761 the congressional township in size. In each of these districts three highway commissioners were to be elected to serve three years with terms so arranged that one commissioner was elected annually.^ To summarize briefly, control over the highways was first vested in the county commissioners' court. From 1819 to 1849 the county commissioners retained jurisdiction, appointing supervisors within the road districts to take direct charge of administration. In 1849 much of the authority of the county commissioners was transferred to three elective highway commissioners within each township in all cases of counties that adopted the township system of government; while in 1887 practically the same system of organization was applied to all counties by provision for the election of three highway commis- sioners within each road district of the counties without township government. State Administration. In 1903 a first step was taken in the direction of a more definite central control by the State. In that year a Good Roads Commission was created to investigate problems of road construction and road drainage and to determine the best method of making an equitable distribution of costs.* The commission consisted of three persons, one an engineer, one a former highway commissioner and one a busi- ness man of attainments,— all to be appointed by the Governor. It was superseded two years later by a State Highway Commission of three members appointed by the Governor and Senate with a two years' tenure.^ This commission was given control over the local dis- tribution of road materials prepared in the State penitentiaries, but its powers related principally to investigations and experimentation. A State highway engineer was selected to take* charge of the experi- mental work and prepare bulletins of advice for local officials con- cerning proper methods of construction and maintenance of earth and improved roads. During the following eight years (1905-1913) the highway commission thus created rendered valuable service to local officials in many ways. A large number of experimental roads were con- structed in a number of counties, and much was done in advising and assisting local officials and in arousing public appreciation of the necessity for road improvements. However, the commission was lim- ited as to its authority and the urgent need for the establishment of a comprehensive road system for the State led it to recommend some radical changes in the organization of the road system.^ The Forty-seventh General Assembly (1911) appointed a special joint committee to investigate the question of revising the roads, high- ways and bridge laws, in connection with the general subject of county and tow nship organization. This committee, after an exhaustive •«*„tT^^ ^^^ ^J ^^^ ^?^ supplemented by legislation In 1901, providing for a ^Ki^ «. ** 4 ®*{®'"lt' system of appointive supervisors by any county without town- county fnl9?2 through a popular vote. Act of May 10. IWl. Session Laws. 1901. *Laws, 1903, p. 305. •Laws, 1905, p. 74. •Fourth Report of 111. Highway Com.. 1910-1911-1912, p. XV. Study, reported to the following legislature (1913) with recommen- dations and conclusions and a draft of a proposed highway law. In substance the report recommended that a system of State roads be established, improved and maintained under the direction of a State highway commission appointed by the Governor. It further provided for the creation of a new office of county superintendent of highways and the substitution of an elective township highway engineer for the local highway commission.^ The proposed bill accompanying the report was, with some modification, enacted into law during the 1913 session and forms the basis for highway administration at the present time. B. THE STATE HIGHWAY COMMISSION. /. Organisation. Under the new law, the State Highway Commission is the central organ of highway administration. It consists of three members appointed by the Governor and Senate. They must devote their entire time to their official duties during their term of office, which is for six years, one retiring every two years. The Governor designates one member as president. Not more than two members of the Commis- sion may be of the same political faith. The president receives a salary of $5,000 and the other Commissioners each receive $3,500 and neces- sary traveling expenses.® The Commissioners spend about four days per week in the per- formance of their duties. About half of this time is occupied with board sessions, held every week, at which contracts are signed, bids are opened and improvements for State aid roads approved, etc. Each Commissioner signs every contract and all blue prints of plans drawn by the engineer. In most cases signing is merely perfunctory although the work of the engineers is sometimes modified by the Com- mission. The other half of the time of the Commissioners is largely spent in visiting county boards, explaining the road laws and giving advice and suggestions to the local authorities. Only in connection with these visits is any attempt made to apportion the work of the Commission among its members. 2. Functions. The functions of the State Highway Commission, as prescribed by law relate to the following general subjects: (a) Assistance to local highway officials, (b) Investigations and collection of statistics, (c) Control over State highway officials, (d) Supervision of State aid roads and bridges. , These functions are in mosl cases actually performed by the engineering staff or county superintendents, subject to approval by tbe Commission. j ft- j Assistance to Local Officials. With the exception of its power to prescribe a system of accounts J^^^tate Highway Commssiion is given no direct authority over the aod'Town^l?^ i?^ Joint Legislative Committee of tlie 47th Gen. Assembly on County 8pno^ *P Organization, etc.. Vol. 1, p. 84. «oaas and Bridges Act, approved June 29, 1913, Section 3. » 762 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 763 m local road officials. It is, however, required to advise and aid them in various ways in the construction of local roads and bridges, in estima- ting grades and preparing drainage systems. When requested by local officials the commission must have prepared plans, specifications, esti- mates of cost, etc., for the improvement of the highways and the construction and maintenance of bridges.® The most effective service rendered in the way of assisting local highway commissioners is performed through the county superinten- dent of highways, and is described more definitely in connection with the duties of that official. The commission also publishes a monthly periodical devoted to Illinois highways which contains much valuable information designed to be of assistance to local officials, while mem- bers of the engineering staff are frequently called to various localities to consult with commissioners and address public meetings.^® Investigation and Experimentation. The State Highway Commission is authorized to conduct general investigations to determine the best methods for the construction and maintenance of roads for various sections of the State, and collect statistics and general information relating to highways." This con- stitutes the bulk of the work carried on by the former highway com- mission under the law of 1905 and the experimental work begun then has been carried on without interruption by the present commission. About fifty miles of experimental concrete and macadam roads have been constructed under the present law in Sangamon, La Salle. Madison and McLean counties for the purpose of experimentation ;^- and undertakings started prior to the passage of the present law have been completed. About thirty-five miles of roadway in various sections of the State were, by June 1, in process of construction. Prison labor is sometimes used in the construction of experimental roads, and the necessary wagons, scrapers, rollers, etc., are furnished by the commission. The work is usually placed in direct charge of a roller operator. After construction annual investigations are made to determine the condition of the roads and a record is kept of all data valuable for purposes of determining the merits of the various kinds of materials used.^* The commission also continues to supervise the distribution and use of penitentiary stone on the local roads. A conference was held in the Governor's office on January 8, 1914 to discuss the general ques; tion of prison service in connection with the highways. It was here decided to employ prison labor wherever desired by the local com- munities for the improvement of local roads with crushed stone from the penitentiary. The only necessary expense for the local community under this scheme will be that of paying transportation charges on the penitentiary stone, machinery, tools, etc., furnished by the State, and the expenses of engineers from the State Highway Department while engaged in supervising the work. According to the report of the State •Roads and Bridges Law, Sec. 3D. i»Illlnois Highways, Vol. I, April, 1914, p. 4. "Road Law, Sec. 3D. ^•Illinois Highways, April, 1914, p. 4. ^"Report of Engineer in 111. Highways, June, 1014, pp. 50-51. Engineer at the close of May, 1914, arrangements had been completed for the construction, during the summer, of thirteen miles of macadam at Beecher and five miles at Carbondale with prison labor.^* Control Over State Highway Officials. So far as control through appointment and removal is concerned, the State Highway Commission's power is very limited. The State Highway Engineer and his assistant are appointed and removed directly by the Governor, while all the other members of the official staff are in the classified civil service. However, certain regulative powers are vested in the Commission which give that body considerable authority over the administrative staff. In the first place it is authorized to prescribe rules and regu- lations fixing the duties of all the State highway officials, including the county superintendents. By July, 1914, two bulletins had been issued by the Commission, — one containing general suggestions for the guidance of the county superintendents, and the other more specific rules and regulations relating to the duties of the same officials. Additional bulletins will be issued containing rules to apply to all other State highway officials. The Commission has also auditing control under a provision of the law which requires it to prescribe a system of auditing and account- ing for all highway officials, subject to the condition that the system as prescribed shall be as nearly uniform as practicable. By virtue of this authority the Commission has issued some general orders to the county superintendents relating to the keeping of letter filing systems, indices to approved contracts, etc., which will be described later. Blank forms have also been prepared by the State Highway Commis- sion for the keeping of local road and bridge accounts by the town- ship and district officials. State Aid Roads. State aid roads are defined by the Act of 1913 as all roads and hridges constructed, repaired, or improved at the joint expense of the State and any county or count* es within the State. The State Com- mission is given final control over all matters relating to the estab- lishment, improvement and maintenance of such roads. With respect to the establishment of the State aid roads, the county board has initiatory authority. It specifies the highways within the county that are to be so designated but the total mileage of such must not exceed 15, 20, or 25 percent of the total road mileage of the county, — the exact percentage depending upon the class to which the county belongs. The total county road mileage is determined by the State Highway Commission and not the county authorities. The procedure followed in establishing State aid roads Is as fol- lows : The county board designates on a map the highways it desires Jp class as State aid roads and forwards the map so marked to the ^tate Highway Commission. That body, after examination, may approve the selection of the roads as shown on the map, or may, if necessary, change the proposed routes in order to have them connect ""Illinois Highways," June, 1914, pp. 49-50. |,i » 764 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 765 ill with those of adjoining counties. After having been duly established the State aid roads do not immediately pass under the jurisdiction of the State Highway Commission, but remain subject to the supervision of the local highway commissioners until they are actually improved at the joint expense of the county and State." The State Commission not only controls the establishment of State aid roads but has final control over the question of improving them. Here again the county board takes the initiative by deciding upon the sections to be improved. A record of their action is trans- mitted to the State Highway Commission which makes an investiga- gation of the roads under consideration and approves or disapproves. If its action is favorable, plans and estimates of the costs are prepared by the State Highway Engineer and endorsed by the Commission which then issues a final order authorizing the construction. This completes the commission's part in the procedure ; but before work is actually begun the county board must also approve of the plans and officially authorize the improvement. The State Commission's consent is necessary for any changes in plans that may later be proposed. All contracts for the construction and improvement of State aid roads are let by the State Highway Commission. The Commission must be sure there are sufficient funds at its disposal to defray the State's share of the cost before it may enter into a contract. When improvements are contemplated the State Highway Engineer draws up the plans and the Commission advertises for proposals on the basis of these plans but others may be received and considered. The adver- tisements must be published at least once a week for two consecutive weeks in a newspaper of the county interested and in others at the discretion of the Commission. The final award of the contract goes to the lowest responsible bidder unless the Commission sees fit to reject all proposals and re-advertise. If none of the second set is acceptable, the State may itself proceed with the construction. Finally the State Highway Commission has authority to accept or reject the improvement on a State aid road. After completion of the improvement and after inspection thereof and a report thereon by the State Highway Engineer the Commission takes official action and communicates its decision to the contractor and to the County Clerk. Payment for work under contract may not be made by the auditor except when authorized by the Commission. The State Highway Commission is also required to keep State aid roads in repair. Although the Commission is thus responsible for maintenance, it, of course, discharges its duty directly through the Engineer and his subordinates. The preliminary work of establishing the State aid roads is now nearing completion. By April, 1914, maps designating the roads had been received and approved from ninety-two of the one hundred and t\yo counties of the State and two of the remaining ten were preparing the maps. With but few exceptions maps were approved as they were submitted by the county board. Moreover forty-eight I'Once fixed, routes designated as State aid roads may not be changed within three years, but If the county board has not designated the total mileage aUotted to the county, the State Commission may add roads sufficient to make the required total. counties had submitted to the Commission resolutions designating the sections of State roads upon which improvement was desired during the coming two years.^^ For a time ^the actual work of construction was threatened w ith interference by litigation involving the constitutionality of the road law but the decision of the Supreme Court of the State, rendered June 14, 1914, sustained the Act.^^ By the first of June all the necessary surveying, etc., had been completed for approximately fifty miles of roads in eighteen counties, and the Commission was ^eady to proceed with construction. Surveys had been made of a toUi of one hundred and thirty miles of roads. By the end of 1914 State aid routes in ninety-four counties had been agreed upon between the county board and the State Commis- sion, and contracts had been awarded on sections of roads in forty- eight counties having a total length of 91.27 miles. J. Engineering Staff. The law provides for a Chief State Highway Engineer, an Assis- tant State Highway Engineer and such other officers and employes as may be deemed necessary by the State Commission. The Chief Engineer and his assistant are appointed by the Governor for six (6) year terms, and are removable by the Governor for incompetency, neglect of duty or malfeasance in office. The rest of the members of the staflF are subject to the classified civil service. The central offices of the engineering staflF are situated in Springfield with the Chief State Highway Engineer in charge. With him there is the Assistant State Highway Engineer, a road engineer, a bridge engineer, and two assist- ant engineers. In addition to the central office, there is a branch office in each of seven divisions of the State and a division engineer placed in charge. At present the division engineers are in the Springfield office but ultimately their offices are to be located at Aurora, Paris, Rock Island, Peoria, Springfield, East St. Louis and Marion. The division i«Follo\ving is a list of the counties with the number of miles in each to be improved, as published in Illinois Highways, April, 1914, page 4. Sangamon 7 Peoria 3 Saline ly^ Vermilion ] 4 C'oles ii/j Trawford 4% Bond 1^ Livingston 3 Franklin ly, -Madison 4" Monroe 1 <'linton ly^ Iroquois ' 6 U^'Kalk 3% Marshall 1% Lake 3 Kane * 5 j!&je ...:::::::::::::::::.3 Ss^:. :::::::::::::::::::::::::::::: 1^ Adams o Scott .'.'.'.'.*.'.*.*.'.'.'.'.'.'.*.**.".'*.'.' 1 Stephenson 2 LaSalle ' ' 7 ^Voodf ord '.........'..'.'.'.'.'.'.'.'.'.'. 2 Clark 1 DuPage 3 Henry 3 Grundy 3*^ Kendall 3 Pike 1^ Pulaski 1 Schuyler 1 Tazewell 2^, White .V 3 Whiteside 2% Boone 1 Champaign 5 Clay 1 Clinton 1 Edgar 3 Lee 2V. McHenry 3 Rock Island 114 Stark 1 Warren 2%^ St. Clair 3 Cook 21 Total Mileage 141i^ "Decision printed in Illinois Highways, June, 1915, pp. 66-68. \^ ^M h a 766 EFFICIENCY AND ECONOMY COMMITTEE. h'W- liB't' engineer has supervision over State aid construction and maintenance within his district. The county superintendent has direct charge within the county. Following is a list of the officials and employes provided for in the biennial appropriation for 1913-15 together with the salaries: State Engineer $4,000 Koad Engineer 2,520 Bridge Engineer 2^400 Assistant Engineers (3) each 2,000 Assistant Engineers (2) each 1^800 Assistant Engineers (3) each l',500 Assistant Engineer l|680 Stenographers (2) each l[oOO Stenographers (2) each 'pOO Office Assistants (2) each 600 Messenger goo The Chief State Highway Engineer is the administrative and tech- nical expert of the State Highway Commission. His duties are pre- scribed by the rules and regulations of the Commission. Subject to the approval of that body he has a large degree of supervisory author- ity over the construction and maintenance of State aid roads. In con- nection with the improvement of such roads, it is his duty to draw up plans and specifications and estimates of costs and transmit his figures in the form of a report to the Commission for approval. When author- ized by the Commission he takes charge of the maintenance and repair of the State roads and bridges and employs the necessary labor. He acts as chief of the county highway superintendents, and may direct them to visit and inspect the highways and bridges in the various towns or districts of the county. No general regulations have as yet been issued by the Highway Commission covering the specific duties of the Chief Engineer or his subordinates. C. COUNTY SUPERINTENDENT OF HIGHWAYS. /. Organisation. For each county of the State there is selected a county superin- tendent of Highways, who serves for six years. His salary is fixed by the county board and is payable out of the general funds of the county. The county board may also remove him. The method of appointment provided is as follows : The county board of each county nominates from three to five persons, residents of the county. The persons so nominated are subjected to an examination prescribed by the State Highway Commission and those found eligible for the office are certified back to the respective county boards who then make the appointment from the certified list. If no one is found eligible from the first list submitted by any county, the county board sub- mits, for examination, a second list of from three to five names. If none of these qualify under the State examination, then the county board is authorized to appoint a non-resident of the county who has successfully passed the examination prescribed by the State Commis- sion. The law providing for the creation of the office of county super- intendent has been in operation less than a year. Most of this time has PUBLIC WORKS, PARKS AND BUILDINGS. 767 been occupied m effectmg the necessary organization. Examinations for positions of county superintendents were held by the State High- way Commission in October, November and December of 1913 and January and March, 1914. A total of 395 candidates appeared of which 159 were placed on the eligible list. On June 1, ninety-six counties had selected county superintendents, and by December, all but three of the 102 counties had made appointments. State Aid Roads. 2. Functions. The county superintendent may be regarded as both a State official and a local official. As a State official he acts as the local representative of the State Highway Commission. As such he takes charge of the maintenance and repair of all State aid roads subject to supervision by the State Highway Engineer. He receives orders from the Com- mission or the Engineer and his actions are subject to supervision by them in all matters pertaining to State aid roads. In general he serves as the connecting link between State authorities and local authorities. County Roads and Bridges. By county roads and bridges, as here used, is meant those roads and bridges that are constructed and maintained at the expense, either wholly or in part, of the county. All work of this nature is under the supervision ot the county superintendent. Should the county board decide to build a bridge within the county and pay the entire cost it IS the duty of the county highway superintendent to prepare plans and specifications for the structure and submit the same for the approval oi the State Highway Engineer. He also prepares the plans and speci- hcations and supervises the construction and maintenance of roads and bridges constructed at the joint expense of the county and a town or road district therein. He must inspect all such improvements after tlieir completion and his properly certified acceptance of the work is necessary before payment is made on the contract. All plans for bridges submitted by the county superintendent for tiie approval of the State Highway Commission must be accompanied by an exact description of its location, showing the road it is on the stream it spans and the name of the bridge, if it has a local name! :5pecihc directions are issued by the Commission relating to the struc- ture of such bridge, materials used for substructure and superstructure and the bridge designs.^** Local Roads and Bridges. Most of the functions of the county superintendent that deal with oca highways are purely advisory. He is required to advise ana direct the local commissioners as to the best methods of repair, maintenance and improvement of roads and bridges ; but no method is provided for emorcing his directions should the commissioners see fit to disregard tnem. it is for this reason that the superintendent is instructed in ^^^^_regulations of the State Highway Commission, to approach 'the ill i' 1 ti m [l \ 768 EFFICIENCY AND ECONOMY COMMITTEE. local problem in the spirit of cooperation with the highway commis- sioners rather than one of dictation. Hence one of the first duties of the county superintendent is made that of arranging meetings with the commissioners of each township or district in order to discuss the best methods of improvement, this to be followed by a joint meet- ing of all highway commissioners of the county. The law requires the county superintendent to inspect, at least annually, and at other times on the direction of the State Highway Commission or the State Engineer, all roads and bridges in each town- ship or district in his county. The inspection trip is to be made in each town or district in company with the commissioner thereof. The object of these inspections is not only to acquaint the county super- intendent with local conditions but also to enable him to suggest proper methods of improvement of road conditions. In connection with the work of inspection should be mentioned that of preparing maps of the county drawn to a scale of three inches to the mile and of sufficient size to accommodate a township on each sheet. Blueprints of these maps are prepared in the State office at Springfield and are furnished to each local highway commissioner and town clerk of the county. These maps enable the State officials to know all details of the local roads and keep in close touch with the work of construction and improvement. This is very important in assisting in determining proper materials for local communities. In one respect the county superintendent possesses a legal power which gives him important possibilities of control over local roads and bridges. His approval must be had of all contracts entered into by the local highway commissioners for the construction or main- tenance of any road or bridge the cost of which is in excess of $200. He must also approve of purchases of machinery or other appliances used in road construction where the cost exceeds $200. These two requirements provide for fairly effective control over financial transac- tions of any importance. The law requires the county superintendent to make all such con- tracts approved by him matters of record. He must record the date of the contract, the date of approval, name of town, name of con- tractor, materials or work for which tlie contract was made, the price and other matters of importance. All such information must be kept in. a special volume and indexed. The law also authorizes the county superintendent of highways to- hear and decide appeals from the preliminary and final orders of tlie local commissioners of highways relating to the laying out, alteration or vacation of local roads. D. LOCAL HIGHWAY ADMINISTRATION. Only brief mention need be made of local administration. For purposes of local organization the law recognizes two distinct types of counties. In those counties organized under the township form of government the township is made the unit for highway purposes. I" those counties not so organized the county board is required to create road districts approximating in size the congressional township. The PUBLIC WORKS, PARKS AND BUILDINGS. 769 district boundaries, once fixed, can be changed by the county only on petition of at least twenty voters of the road district affected and after due public notice. However, the organization provided for the township and that for the road district in counties without township government are similar and the two may be described together. Highway Commissioners. Within each township or road district there is elected by popular vote a board of highway commissioners, consisting of three mem- bers, one being elected each year for a term of three years. Under township organization the election take place at the annual town meet- ing on the first Tuesday in April ; in road districts at a regular annual election on the same date. The salary of the commissioners is fixed at two dollars per day for time necessarily employed in the discharge of their official duties. In place of the board of three commissioners any township or road district may elect to choose a single commis- sioner. This may be done by a petition signed by twenty-five legal voters of the town or district addressed to the town or district clerk and asking for a referendum on the question of adopting the single commissioner system in lieu of the board system. About one hundred townships have adopted the single commissioner plan. The functions of the highway commissioners may be summarized briefly. They are authorized to determine poll and general taxes for road purposes and the payment of damages ; to submit questions of issuance of loans to a popular vote; and to supervise expenditures I hey are given jurisdiction over the establishment of local roads powers of direction over their construction and maintenance and per- torm miscellaneous services of lesser importance. Clerk of Highzvay Commissioners. Under the township system the town clerk serves ex-officio as Clerk of the board of highway commissioners, while for each road district a district clerk is elected for a term of three years The compensation of the clerk is fixed at $3 per day for time actually employed in attending the meetings of the commission or in attending to Ins clerical duties. He is required to attend the sessions of the commission and keep a record of the proceedings. He acts as cus- todian of all records, books, and papers of his town or road district. / reasurer. In counties under township organization the town supervisor is ex otticio treasurer of the road and bridge fund. In other counties tne district clerk, chosen as above, acts as treasurer for his district ^le is paid on the commission basis, being entitled to two percent on ail amounts paid out by him up to and including $2,000 and one per- ^tnt on all amounts above that sum, not including balances paid his successor or amounts paid in liquidation of debts. The above is exclusive of any compensation to which he may be entitled because other duties periormed in some other official capacity. E. METHODS OF FINANCING HIGHWAY ADMINISTRATION. of ii^^^c^ ^^^ ^^^^^ ^^^ constructed and maintained at the joint expense ine btate and county, each contributing one-half of the total cost. > 770 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 771 W^' i:' i^l .'I Payments for the Staters share are made from appropriation by the legislature to the road and bridge fund. The revenues from auto- mobile licenses and similar fees as well as the general tax receipts are utilized for road purposes. For the biennium 1913-15 a total of $1,- 100,000 was appropriated for road construction and maintenance, $800,000 of which is from money available from license fees and $300,- 000 from general taxes. This sum is allotted to the various counties in proportion to the amount of road and bridge tax levied in the county as shown by the published reports of the Auditor of Public Accounts for the preceding year. Under a special provision Cook county received twenty-five percent of the amount collected within the county. After the allotment is made by the State for each county it is the duty of the county to take the necessary steps to raise an amount equal to the State allotment. If it neglects to do so within six months it forfeits its allotment which is then apportioned among the other counties. The county's share of the cost of State aid roads may be provided by appropriation from available funds, by the assessment of a tax, by voting a special tax, or by issuing bonds. If the road is a county line road the county boards of the tvio counties affected fix the pro- portionate share of one-half of the total cost which shall be borne by each. Bonds may be issued in the same manner as provided for the issuance of county bonds for other purposes. The county board causes the question of their issuance to be submitted to the voters of the county. County boards are authorized to construct and maintain hard roads at the entire expense of the county in which case the money may be raised either by the vote of a special tax or by bond issues. The problem of financing local construction and maintenance devolves upon the township or road district. A poll tax is authorized but may be dispensed with. A general property tax levy up to sixty-one cents on each $100 valuation is authorized; an additional levy up to twenty cents on each $100 valuation may be made; and by popular vote, bonds may be issued for bridges or a special tax may be levied for hard roads. F. SUMMARY AND CONCLUSIONS. Only within the last ten years has the State taken any definite steps to treat the problem of road-making as a State problem. A small beginning in this direction in 1903 culminated in 1913, in the passage of the Tice Road Law, which provides for the establishment of a comprehensive system of roads at the joint expense of the county and State. To administer these roads there was created a State High- way Commission, appointed by the Governor, and a State Highway Engineer and assistant who act as the administrative officers of the Commission. Each county has a county superintendent of highways who serves as a local agent for the State officials, as administrator of county roads and bridges, and as general adviser for local highway commissioners. During the period in which the law has been in operation (Janu- ary, 1915) the State machinery provided for has been organized and 99 of the 102 county superintendents have been chosen. Construction and repair of experimental roads has continued. State aid roads have been established in 94 counties, and 48 of these counties have designated the sections of State roads they desire to have improved. The State engineers have proceeded to examine the roads so selected, have com- pleted 130 miles of surveying and have drawn up and completed plans and contracts have been made for about 90 miles of these roads. The new road law has not been in operation a sufficient length of time to warrant any conclusions as to results. It represents a long step m the direction of effective central supervision and control the need of which has long since been demonstrated. The State Commis- sion has recently prepared a map showing the highways that have been established as State aid roads. A study of this map reveals some routes that extend with some degree of continuity through the State or connecting important points within the State. There are how- r'^n/!^J''^^ mdications of the fact that the system was designed by 94 different authorities (8 counties had not established State aid roads). The system resembles not so much a State system as a group of local systems more or less effectively connected. Such a result was inevitable and perhaps unavoidable. The situation is even less satisfactory when the question of improving the State aid roads is considered. The county authorities determine the sections to be improved. The biennial allotment to each county, in most instances, is sufficient to construct only a fev\^ miles of roads and these few miles may be distributed to various sections of the county Many years must elapse before all State aid roads can t)e improyed. In the meantime millions of dollars will be expended in constructing disconnected stretches of roads scattered everywhere and leading now^here. Improvement should be confined at first to important roads that form through routes and to this end, the State Highway Commissioners should have power not only to alter the location of :5tate aid roads as fixed by the county boards, but likewise to designate what routes shall be improved first. f^ 7^'^^'^ ^^^ ^^ ^^^^ question whether the organization provided to administer the State aid roads is best adapted to that end. After a care ul summary of the work to be performed by the central authori- ties there seems to be little justification for a board or commission in m;fi^; charge. The only important functions to be performed that might make a board necessary or desirable relate to the establishment itlf /^? '''^' ^^^ apportionment of highway funds among local- anrf H^r r l.^'"^"^^ ?.^ ^"1^^ and regulations governing the powers and duties of the subordinate officers of the department. With respect St.?/ ^^.t^blishment of State aid roads there is little to be done by the conn..? -/t!^'^^ J'^^T'^ ^^^^"^ ^^^* ^^^ ^°^^s selected by the counties merevn^f T^ '''\'^' J^e duty of apportioning sLte money Is dutW Pr/""^tory, while the rules and regulations relate largely to the neeriL l^^ •''''""•^ superintendents and consist principally of engi- eering technique m road and bridge construction and maintenance > 772 EFFICIENCY AND ECONOMY COMMITTEE. So far those that have been issued were prepared by the State engi- neer and merely approved by the Commission. The departmental duties relate almost exclusively to administration in a field requiring expert engineering skill. It would seem, therefore, that greater efficiency might be obtained if direct administration of the highways were placed in the hands of a single commissioner chosen on the basis of his technical knowledge, with the approval of some higher authority for certain actions of most importance. II. WATER RESOURCES. A. GENERAL REMARKS. Jurisdiction over the waters and waterways of the United States is vested m the several states, subject only to national authority over navigable streams in the interest of interstate commerce and over the waters on public lands and international boundaries. In Illinois it would seem that the rights of the public with respect to the water resources was not until recently very fully recognized either in the aws or in the decision of 1\c courts.^« Primary interest seems to have been centered upon the protection of private property rights along fQ?9'!tf "t^^"^' c^ '^'^^'^' '^^^^' *^^" safeguarding public interests in IMZ the State Supreme Court held, in Middleton v. Pritchard ^o that the streams of Illinois were non-navigable in law and that the riparian rights of private owners extended to the middle of the chan- nel. Ihis rule, however, was not applied to lakes and ponds. There are some indications, however, of a recognition of public interests m the waterways even in the earliest legislation. In 1819 condemnation of private property was authorized for the construction of a dam for a grist mill. The public character of the grist mill was made the justification for such action. Legislation of this sort was very common during the 30's and 40's. But more recently the courts have held that the extension of the right of eminent domain for dams tor other purposes is unconstttutional.^i In 1889 the use of water tor domestic purposes was given precedence over its use for purelv private enterprises." As a recognition of the public's interest in the use of waters for navigation the State early embarked on a broad program of stream improvements at the expense of the public. Most ot these projects were dropped within a few years. At present, the State's authority over water resources is lodged in two important commissions,— the Illinois and Michigan Canal Com- missioners and the Rivers and Lakes Commission. Besides these how- ever there are many other offices that perform functions directly related to the subject, among them being the Fish and Game Commis- sion, the State Board of Health, State Water Survey, Natural History i^aboratory, Public Utilities Commission and State Geological Survey Arte relative importance of the functions performed by each of these ^^oie^vill be explained in the following pages. ^^3, Scammon (4, 111.), 509. ^^Gaylord v. Sanitary District, 214 111. 576 (1903). Elgin V. Elgin Hydraulic Co., 85 HI. App. 182. > 774 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 775 i m ■•iB'4 B.' ILLINOIS AND MICHIGAN CANAL COMMISSIONERS. Introduction. The Illinois and Michigan Canal is an artificial waterway 96 miles lon^ connecting the Chicago and the Illinois Rivers. The total cost of construction, including interest on loans, aggregated more than $13,393,000. The section of the canal extending from the Chicago River to Joliet has been abandoned but connections are made near the latter place with the Chicago Sanitary Canal, thereby still affording a through waterway for traffic. The canal, therefore, is only a por- tion of the present waterway which consists of a stretch of 32 miles from Chicago to Joliet (or thereabouts) via the Sanitary Canal; thence 63 miles from Joliet to LaSalle along the Illinois and Michigan Canal, where it enters the Illinois; and finally along the Illinois River from LaSalle to Grafton at the mouth of the Illinois, a distance of 223 miles. Proposals to construct a waterway leading from the Lakes to the Mississippi basin began soon after the earliest explorations of the French ; and were renewed from time to time during the territorial period of Illinois. In 1808 the Illinois waterway project was urged in Gallatin's famous report on .Means of Communication ; and from 1818 to 1825 it was repeatedly advocated as a desirable extension of the Erie Canal to the Gulf. In 1822 the U. S. Government granted a right of way through the public lands of a ninety foot strip on either side of a proposed canal. Five years later (1827) an additional grant was made to the State of alternate sections of land on either side of the right of way. This grant was made subject to the condition that the canal, when completed "shall be and forever remain a public high- wav for the purposes of the government of the United States, free from any toll or other charge, whatever, for any property of the United States, or persons in their service, passing through the same." These grants were followed by supplemental legislation in 1833, 1842, and 1854. In all 480,000 acres were granted by the federal govern- ment most of which was sold to pay expenses of construction of the canal. The total receipts from these sales have been about $6,000,000. At present there remains in the posses«^ion of the canal authorities some lots in Chicago and Lockport valued at about $168,000. Aided by these grants, the .State of Illinois took definite action in 1829 when it authorized construction although actual work was not begun until 1836. The canal was finally completed and ready for traffic by 1848. Organisation. Under an Act of 1829 canal administration was first vested in a commission of three appointed by the Governor and Senate, and to serve for two years. Two years later under an amendment to the original act, it was provided that one of their number should be designated by the Governor as superintending commissioner, who was to devote his entire time to canal affairs. In 1833 the office of canal commissioners was abolished; but was recreated, practically J" its original form, in 1836, and in the following year was made appointive by the legislature instead of by the Governor. In 1843 the organization was again changed by the abolition of the office of com- missioners, and the establishment in its stead of a Board of Trustees of three members, one appointed by the Governor and two selected by the subscribers to the $1,600,000 canal loan authorized in the same year. This Board continued to manage the canal until 1871 when jurisdiction was transferred to the canal commissioners created in 1867 to construct the Illinois and Mississippi Canal. As at present organized under an act of 1874, jurisdiction is vested in a board of canal commissioners consisting of three per- sons appointed by the Governor and Senate for terms of two years. The Commissioners must give bond to the extent of $2,500 and receive as compensation $5 per day for each day actually employed in the duties of the office. The commissioners elect annually one of their number as president, one as secretary and one as treasurer. Two of the three commissioners constitute a quorum for the transaction of business. Quarterly meetings are required and others may be held at the request of any of the members. Following is a list of officers and agents employed by the canal commissioners in 1913, together with salaries: General Superintendent $2,500 per annum Assistant Superintendent 1,500 " " Chief Clerk , . * 1*800 " " Ass't Clerk and Stenographer .' I'bOO " Attorney j 500 " " Assistant Treasurer '350 " " Collector of Tolls [ 1,080 " " Collector of Tolls (2) each $900. . . . . '. . . . . , . '. 1,800 " Locktender ' 35 per mo. Locktenders (6) each $35 per month during navigation. $25 per month during winter months. Locktenders (3) each $50 per month during navigation. $25 per month in winter. Locktenders (1) each $50 per month during navigation $35 per month in winter. Locktenders (2) each $40 per month during navigation. Powers, duties and methods of procedure. The jurisdiction of the canal commissioners extends over the canal proper; lands and other property along the route of the canal; over the Henry and Copperas Creek dams and locks in the Illinois Kiver; and also over a set of locks and dams on the Little Wabash f two Ov O -^ O t^ 00 0\ lO t>» CK t>. »-' 0\ »-< T^oo"-H" t>. tx o\ t^(vlOQ»-jOPOOmTfoOt>»rO«*5 00 .-Tt^ croCoror CO u H t/) H < H C/3 tf) rt .2* f^ ^ u *-> 7i <-* ?» tJfl o H •a c - (U (U 3 O «- > o •J5 :2 :S^ On '-* Q 0\ qoo'fvi'tC \OfOO "^ 4^ :S .OO--" •OS'S < < c/) o •-^ •-] .2 'u o c t- o .2 c«J2 o 'S •^ po O r^ r^ r>H 00 1>. oCfvf O'o" On O '"^ ro <«^ CM in 00 -^ o t^ ^ ro lO 3'^'^LOO^r»^tr)rooOr^®QCvj»-«ro ^O ?M 00 O PO ^^O O Os^vO O PO eg 00 _^ '. -« ..-. u^ vO ^C o ^C rC »-<" o Tf q" c^" oT oT o oT vo f-T «-<" vo' N _i<5^_«_O0\O\O\00O00t^r^Ov000v0iOU^0N CM eg r> rf CO ps op ^s -* "^ o\ e CO voo"^'-^'— '•— < PO PO O lO o o On 1— • PO ^P ^ (M 0\ PO cq ,-1 rvunrqO'0'*oomr»ON ss u-> O •-• S >C t^ CM ^ Q ^— ^'"ww' --^ '^i^ N^w >^ V >* %^^ \- rf >^^ V ^ ' — • \^\ ^\ ^—* v^^ •■* * \^ ^^ ^^ '—• "^ ^^ a'^ ^\ ' — ■ ^~~* ^^ •- • ^^ rl^c_^0\oCloo'^^>^poO'^oCf^fu^ln^C^Cvpf*^^ •""• ^mvOso-'rO'— .t^ONOioino»OTj-Ln^'^POPOPOPO'^ Ot^X 0\ O^-^LO On^ 1-HOOO POfvi N rt tx lO vO^in PO S fO 00 Ov •— < 'r-^'ir^sOrri^aaT ^••Zrri-°°-^-°i>^..'^.Oi.^ t^ 00 00 1^ ^ootNiovo^iocvjfvj cq po cvf rH^cvT ls/i£?CiO\'r « V -« -^ ^, ^^- . w lO \0 t^ vO «0 CO PO CO CO fO tC i2 j:a dv ^ o5 oo ;=^ s '^ t. ^> 00 vq vd -^ vo »o ^ 00 Jo ^ J^'SR 15 S^f^* cvj r^ CM Tt . ^^^vOtI-pOpooO— (iot>*\O00O\ bo oS-3 ^OSOfM(M(M^"2Q^'^CMfMCM^LnOCqCM"^^ ^ Cfl S *I>00t^t^tO'^-^Tj-^P0P0P0P0«O«OP0P0P0CVJ«-"O ^ O C '~' •— < »"' t-H t-H »-H r—4 »-H t— I i— I t— I t— I »-H 1— • 1— • »— « r—t r—t «-H ?— « »— « CM to 00 t^ ^ ^ CO 00 00 vO o O o IJj '•^ VJ >" "' t7\ "-^ fO 5- O»-»OQO\O^CMPO'^»OOr:^002j I^t^000Q0Q000Q0Q0Q0Q0Q00a^O\O\O\pNO\^2;K:,S OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO^^ ^oSSiS.® \ 780 EFFICIENCY AND ECONOMY COMMITTEE. The improvements on the Little Wabash River at New Haven resulted in a small surplus for the first years of operation ; but in 1874 a deficit of $362.73 was created. The Wabash locks and dams have long since been abandoned although the canal commissioners still have jurisdiction over them. • It will be noted from the foregoing table that, although the amount of tonnage carried over the canal has largely increased since 1908 there has been only a very slight increase in tolls since that date. This may be explained by the fact that most of the extra tonnage carried consists of United States Government property upon which no tolls may be levied. The connection now made with the Chicago Sanitary Canal, at Joliet, provides a through waterway capable of transporting barges measuring 103 by 17 by 4.5 ft. The bridge clear- ance is now 11.6 feet above the water line. The amount of toll receipts reached its highest point in 1865 when it aggregated over $300,000. Since then there has been a com- paratively gradual decline until in 1913 only $2,712.10 was collected. Toll receipts, however, no longer represent the principal source of revenue. Below is given a table of canal receipts (exclusive of State appropriation) for the year 1913: Another important source of revenue in the past has been from the proceeds of sales of canal lands. About 480,000 acres of land was granted by the United States Government. Most of this has been divided into lots and plats and sokl from time to time and in some years the receipts from this source have aggregated large sums. Fol- lowing is a table showing proceeds from canal lands sales :^^ 1830—10,850 acres $ 14,204.87 135 acres in Chicago and Ottawa 4,594.00 1836— Sales in Chicago and Ottawa 544,074.97 1836-42-40—295 acres 302,248.40 189 Lots 77,793.00 Stone and Timber 9,659.00 1842— Due Canal fund a/c sales 207,682.53 Total $1,160,256.77 1845— Total receipts from sales $1,152,064.79 1845-71— Bv Board of Trustees 4,706,482.68 1871-1908— By Canal Commissioners 121,942.83 Total $5,980,490.30 Canal receipts (exclusive of State appropriation) for the year 1913 were as follows: — Tolls on Canal $ 2,710.10 Leases on 90 ft. strip and lots 5,781.20 Water power rentals 14,150.00 Water pipe, sprinkling privileges and miscellaneous receipts 5,240.17 Ice leases 901.50 Total receipts $28,782.97 "Report on Taxation and Revenue System of Illinois, p. 120. PUBLIC WORKS, PARKS AND BUILDINGS. 781 Disbursements for the same period were as follows • Mamtenance and repairs at any time to give way to unusual pressure. The canal commissioners have realized the serious situation and have started a movement to finance extensive alterations and improve- ments in order, once more, to make the canal revenue a productive undertaking. In a special report to the Governor, issued in 1912, it was estimated that $1,000,000 was needed to rehabilitate the canal property. This included replacement of the old stone locks by new concrete structures large enough to pass eight hundred or one thousand ton barges, replacement of the present wooden aqueducts by steel and concrete and the installation of 'modern machinery to operate the locks. The increased traffic that would result from such facilities would, it is said, produce a revenue of $200,000 annually which would soon repay the State for the original outlay and at the same time benefit commerce immeasurably by affording a means of cheap transportation. Under date of September 25, 1914, a board of engineers appointed by Governor Dunne submitted a report in favor of plans for a waterway of eight feet minimum depth between Lockport and Utica and available for immediate construction. The report contained three projects, estimated to cost from $1,682,000 to $3,075,000; and recom- mended the last, which involves using the canal from Joliet to Dres- dan, and the Illinois River for 45 miles to LaSalle. Under the laws as they exist at present time, there is no official relationship established between the canal commissioners and the Rivers and Lakes Commission, from whose jurisdiction the canal and its properties are completely exempted. In some respects, however, their problems are very closely connected. Both are vitally intrested in commercial waterways and the jurisdiction over the subject ends with one of these bodies where it begins with the other. The canal was constructed and has been operated for the purpose of affording a through waterway from the Lakes basin to the Mississippi basin. Such a waterway is at present maintained but it is subject to various juris- dictions — that of the canal commissioners extending over all a rela- tively small portion of the whole distance. The future solution of the deep waterway project concerning which the Rivers and Lakes Commission has considerable jurisdiction is inseparably bound up with the future disposition of the Illinois and Michigan Canal. The administration of the Illinois and Michigan Canal is largely an engineering problem and yet there is no engineer attached to the office in any way. This may perhaps help to explain why, although thousands of dollars are annually expended on canal maintenance and repairs, the general condition of the canal is constantly deteriorating. There should be a general superintendent for the canal who should be given direct charge of its administration. He should be an engineer by training, and should have authority to select his own staff reqiiiT-ed to carry on the business of the canal. PUBLIC WORKS, PARKS AND BUILDINGS. 783 In the second place, neither present conditions of operation nor future prospects warrant a continuance of the plans of independent management of the Canal. The plan has not, either from the point of view of efficiency or of economy, proved to be entirely satisfactory in the past; the extent of business carried on does not justify the existence of an entirely separate and independent department at the present time; while problems of the Canal's future argue still more potently for consolidation with other waterway authorities. C. RIVERS AND LAKES COMMISSION. /. Introduction. Historical Summary. Ambitious undertakings for the improvement of water courses were rather common during the first twenty years after the admission of Illinois as a State. Large sums were appropriated for the improve- ment of the Wabash and Kaskaskia Rivers in 1832^* and later in this decade, when the State was engaging in all sorts of speculative enter- prises, a systematic scheme of internal improvements was undertaken on a large scale. In 1837 a Board of Commissioners of Public Works was created to promote and maintain a general system of internal improvements and one of the duties of the Board was that of survey- ing rivers designated from time to time by the General Assembly and constructing and maintaining improvements thereon to aid navigation." The Board, however, was abolished in 1840 and the State abandoned the policy of furnishing direct State aid to internal improvements. Henceforth river improvements were undertaken by local units, special commissioners appointed by the General Assembly or by specially incorporated associations.-*^ In 1843 the counties along the Mississippi and Wabash rivers were given jurisdiction over these streams for purposes of improvement.^^ Problems of drainage and reclamation were dealt with in much the same way— i. e., by the local units or by corporations created for this particular purpose. One of the earliest of the latter was the Wa- bash River Levee Company organized in 1847 to construct and main- am levees along that river.^« In 1850 Congress granted the state title to large tracts of swamp lands within its boundaries. Two years later the General Assembly turned over these lands to the counties in wiiich they were situated in order that proper steps might be taken for meir reclamation. For the purpose of preserving and maintaining the Pitches thus constructed, the county boards were authorized in 1883, torm special drainage districts and appoint a drainage commissioner ^^Jakej:harge of each. This law is still in force. -^Message of Gov. Reynolds, House Journal, 1833, p. 11. Little \Vn\?o^oi-^^'^' ^OO'OOO was appropriated for the Wabash, Rock, Kaskaskia and "ein isQ^^*' "''^''^ ^^''"^- ^""^ *^^^- 27. 1837. Session Laws, 1837, p. 123 ff. the Big Verminnn"^Vi!i"'^^^l^'*'', ^^^ aPPointed by the General Assembly to improve n l«4lf anf SiithpV J ilr^P^v^^^^^^ Navigat on Co., was created by legislative act ^n 1B49 «n2 ?« liki *" ^^^- Various companies were organized along the Rock river "Aof i5 *" 1^1 a company was created to improve the Illinois river. 28o^J ^^^^^ ^' 1843. Session Laws, p. 109. ^^2, mXf,^l^^,^??^^^A'^'^''f'\,^^''^c,.^^ Commissioners, authorized in 1853 Winnfy.?'®*^??"!^ Association, 1852; American Bottoin Board of ImprovementB ' Winnebago Drainage Co., 1855; Sewage Commissioners of Chicago? 1866. ' •J: t I i i. ;( r ! I 784 EFFICIENCY AND ECONOMY COMMITTEE. Local Authorities. The extent of decentralization in control over the water resources of the State existing at present may be shown by referring to the various local officials that have jurisdiction over some phases of the subject. ^ Drainage Officials. In 1908 there were at least 782 local drainage districts, each gov- erned by authorities independent of each other and of State control •» Excepting a few of the large ones, most of these districts are organ- ized under general laws of 1879 and 1885. Under the act of 1879 districts may be created for agricultural, sanitary or mining purposes and governed by a commission of three appointed by the county court. The act of 1885 provides for various methods of creating and controlling districts for agricultural or sanitary purposes. In coun- ties with township government the town highway commissioners are made drainage commissioners with authority to organize drainage dis- tricts after which control is vested in three elective commissioners In other districts known as special districts, including two or more townships, or situated in counties without township government, the commissioners are either elected or are appointed by the county court, depending on the size of the district. The Chicago Sanitary District is by far the most important of the drainage districts. In many respects its powers have far more than local signihcance. It was organized under an act of 1889 and IS governed by a board of nine trustees elected by the voters of the district. The trustees are given very extensive taxing and police powers. A canal has been constructed at a total cost of more than $50,000,000 from the Chicago river to Lockport on the Des Plaines which has a minimum depth of twenty-two feet and width of one hundred and sixty feet. The canal was designed as an outlet for the sewage of Chicago, but is almost equally important as a com- mercial waterway. Considerable revenue is obtained from water power developed along the canal and sold to municipalities for lighting purposes. The state reserves the right to demand a part of the profits resulting from waiter power development, and a biennial report to the Governor and General Assembly is required. Another local improvement of large importance is that of the East Side Levee and Sanitary District, embracing East St. Louis and surrounding territory. Municipal Authorities. Under the cities and villages act of 1872 municipalities are given power to construct and maintain sewage systems, drains and cess- pools, regulate the channel of water courses and landings and abate nuisances by draining ponds and preventing pollution of water courses and water supplies. For the purpose of preventing the pollution of the water supply the jurisdiction of the city is extended ten miles beyond the city limits. Cities may own and operate their own water works, in which case they are not subject to the jurisdiction of the State Public Utilities Commission. Control of water supply is, in fact, alm ost exclusively in the hands of local officials. ''Report of Rlvorg and LakM CommUilon. PUBLIC WORKS, PARKS AND BUILDINGS. 785 Cities also exercise considerable authority over their water fronts They may reclaim and acquire complete title to submerged shore lands under the public waters bordering on or within the city. By special vote the cit^ may repair levees and levy a special tax for such a pur- pose not to exceed $1 per $100 valuation. Park Boards. Park boards may alter the boundaries of their parks by including adiacent submerged lands provided no interference with navigation results, In 1903 the South Park Commissioners of Chicago were ex- pressly granted rights to the submerged lands along the lake front of Chicago. Internal Improvement Commission. Somewhat recently a movement was begun for the adoption of a more energetic waterway policy on the part of the State. In 1905 it lound expression in the creation of the Internal Improvement Com- mission consisting of three persons appointed by the Governor to collect data relating to deep waterway and reclamation projects. At tirst only $7,000 was appropriated for expenses ; but in 1907 the Com- mission was continued and an additional expenditure of $30,000 author- ized In 1907 the Commission submitted a report recommending the construction of a deep waterway from Lake Michigan to the Missis- sippi river. Soon after, a constitutional amendment was proposed for the authorization of a bond issue of $20,000,000 to connect the Uucago Drainage Canal at Lockport with the Illinois river The amendment was submitted and carried at the general election of 1908 1 lie internal improvement commission then prepared a bill to carr\^ out tlie substance of the amendment. It was introduced in the General Assembly of 1909 but failed of passage. lonQ^^^''^^^ ^^^^^ ^^^ adoption of the constitutional amendment of i^U«, an event occured which hastened further legislation affecting the waterways. The Economy Light, Heat and Power Co., a private corporation, began the construction of a dam across the Des Plaines river near its junction with the Kankakee, in order thereby, to utilize tne water power which would result from the construction of the pro- posed deep waterway along the Des Plaines. The Company claimed ne right to construct such a dam under a contract entered into with ne Lanal Commissioners, whereby they had leased the property for twenty years with the privilege of indefinite renewals. A tem- porary injunction was issued and in the trial which followed the State ^upreme Court sustained the main contentions of the Company The case was then carried to the United States Supreme Court which has recen ly upheld the decision of the State Court. Meanwhile another case has been started in the United States Courts and now awaits ^^tion^y the Supreme Court. UW18, iws-lQia— The Internal Improvement Commission of IlUnois. ^^vv^y m- \ 786 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 787 h ■ t ♦ M, Submerged and Shore Lands Investigation. One of the results of the agitation over the Economy Light, Heat and Power Co., case was the creation of a special joint committee of the General Assembly of 1909 to study the conditions of submerged and shore lands and alleged rights of ownership thereto by individuals and corporations. This committee, after an extensive investigation, submitted, in 1911, an exhaustive report^^ in which emphasis was placed on the urgent necessity for immediate action on the part of the state to prevent further encroachments on the shore lines. The Com- mittee recommended the appointment of a commission of three or five persons to be vested with authority over the rivers and lakes of the State. The result was the creation of the present Rivers and Lakes Commission. ^ . . 2. Organ%zat%on. The Rivers and Lakes Commission consists of three members appointed by the Governor and Senate and removable by the Governor for cause. An attempt is made to obtain a body of men who are familiar with the technical phases of the problems involved in their work. For this purpose it is provided that one member must be a lawyer, one an engineer and the third person one who is in- timately acquainted with the lakes and rivers of the State. Not more than two members may have the same political affiliations. One member of the Commission is appointed each year and serves for three years with a salary of $3,500 per annum. The Chairman is designated by the Governor and receives an additional $1,500 per annum. As at present organized the office staff of the commission consists of a Secretary, junior engineer, hydraulic aide, two stenographers and some extra help. Headquarters are located in Chicago. S. Powers and Duties. The powers of the Commission have been enlarged by an amend- ing Act of 1913 and are at present very extensive in scope. It is given, in general terms, "jurisdiction and supervision over all the rivers and lakes of the State of Illinois, wherein the State of Illinois or the people of the State of Illinois have any rights or interests."^^ In another section it is vested with full and complete jurisdiction "over every public body of water in the State of Illinois subject to only the paramount authority of the Government of the United States with reference to the navigation of such stream or streams, and the laws of the State." Nevertheless, important exceptions are made in the law which tend seriously to abridge the sweeping jurisdiction granted to the Commission in the above terms, while there is some question as to what extent its authority supersedes that previously granted to various other organs of the State and local governments. The definite exceptions noted are as follows: 1. The Rivers and Lakes Commission has no jurisdiction over park boards vested, by an Act of 1903, with authority to enlarge their properties by extensions over lands and the beds of adjoining waters. X "Report of the Submerged and Shore Lands Legislative Investigating Committee *** the Governor and 47th General Assembly, 1911. Three Volumes. «*Hurd. Revised Statutes (1913), p. 146, par. 51. 2. 3. 4. The Commission has no jurisdiction over harbors, piers and other structures erected by park or municipal authorities along navigable The Commission has no authority over the Chicago Sanitary Dis- tricts. •' The Commission has no jurisdiction over the Illinois and Michigan Canal or its properties. In brief, the Illinois and Michigan Canal, the Chicago Sanitary District and park and municipal improvements along Lake Michigan arc excluded from the jurisdiction of the Rivers and Lakes Commis- sion. The only semblance of authority over them is found in the amending Act of 1913 which requires the city or park authorities to tile with the Commission all plans of improvements along the lake front after their completion. The specific powers vested in the Commission may be outlined as follows : Prevention of pollution of streams. Regulation and prevention of encroachments on water lines Receive complaints, give hearings and issue orders relating to pollution and encroachments. Preparation of plans for public reservations, etc. Supervision over local improvements. Collection and publication of information. Assistance in local drainage and reclamation projects Construction of levees. Collection and Publication of Information . The Commission is required to collect and disseminate a vast amount of data relating to the navigability of streams, their availability tor water power and for the propagation of fish, and general infor- mation with regard to the natural resources of the State waters and he conservation of these resources. In the first place it is authorized to have prepared accurate maps of all counties of the State showing navigable and non-navigable rivers and streams and the shore lines of nrJ^ A u^ ^""f.^? ^^"'^^ surveys to be made and maps and charts St™ . 'I'-^ ^'^^ and low water marks, river gauges, etc., along ^Pn! 1 • r ^'^ '" determining their navigability, collect statistics and general information relating to deep waterways and publish and dis- i.T.t .*'*7^^^? ^^ !he subject. A detailed study of the streams nn.?c f^^"^ "^'^^ ^ ""'^"^ ^^ determining their availability for pur- poses of water power and all such information must be reported to the resnUc"^f Vi ^V"^t^".s are to be issued from time to time containing the results of the investigations of the Commission. Co-operation with the ea nn T?u "'''" 't^H"" ^equi^ed to aid in the cultivation and propa- gation of fish suitable for cheap meat. ^ diffic!fhv^-'' ^^f °^¥"ala^t the Commission frequently had considerable the f..t ." J"-. "'"^ information required under the law because of data frnr^ •^^- -^^'t '^'^^''''^ ^"^ ""^^"^ ^^ enforcing its requests for was m.r .'" ''''^"/'V'''T^/^^^^"' ^^^ ^^^^^ authorities. An attempt PasseTin \q^T^I u '' "^^^^'^ K^"" amendment to the original Act, a^ent tl.^ ul' .'^^'<''^ ^^^^ ^^'^ Commission or its duly authorized build nln/fl "" T'' ?">^ ^^"^' ^'^^'''' ^^'^ St^te and enter any '^amg or factory when the power used is of hydraulic generation " \ 788 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 789 Furthermore, in making investigations, the commissioners may issue subpoenas for the attendance of witnesses, may administer oaths, and any refusal to obey an order of the Commission subjects the offencier to a fine of from $100 to $1,000. Assistance and Advice in Drainage and Reclamation Project. It is made the duty of the Commission to aid in every way possible local drainage and reclamation projects. They are, however, given no direct authority ov.er such matters beyond the influence which they may exert over the local officials and the aid they may furnish by col- lecting facts and placing their knowledge at the disposal of the local- ities. Indirectly, however, the Commission may exercise consideral)le control over the local authorities. The Commission is required' to furnish at cost, data in its possession, showing survey elevations, con- tours, cost of construction of levees, and, in general, give aid and advice to local drainage officials when they request such information. Moreover, the power of the Commission over the pollution of streams may, in case of sanitary districts, make it practically impossible for the district to proceed without the approval of the Commission. Supervision of Local Improvements. The approval of the Commission is especially required for all pro- posed structures of any sort in any of the waters of the state. Plans and specifications of such proposed improvements must be filed with the Comrnission and its written consent must be obtained before any such projects are carried out. .Structures erected illegally may be abated by the Commission or may be permitted to stand subject to such rules, regulations and restrictions as the Commission may see fit to impose. No authority is given the Commission to dispose of any lands or submerged property belonging to the State. Preparation of Plans for Improvement of Public Waters. For the purpose of encouraging the use of the public waters of the State for purposes of pleasure and recreation, the Commission is authorized to draw up plans looking to a general scheme for beautify- ing the waters of the State and enhancing their attractiveness as pleas- ure resorts. The Commission is also required to draw plans for the reservation of tracts of land along the waterways to be reserved for pleasure, recreation or sports. Reports of their work along this line are required to be presented to the Governor, with proposed bills. Prevention of Pollution of Streams. The law of 1911 as it originally stood made it the duty of the Commission to see that the streams and rivers are not polluted or de- filed, but a proviso withdrew from its jurisdiction all cases affecting the rights of drainage or sanitary canals or districts. By the amend- ment of 1913 these exceptions were removed to some extent leaving only the exceptions noted above. Specifically the authority of the Commission is to see that the rivers and streams are "not polluted or defiled by the deposit or addition of any injurious substances and that the same are not aflfected injuriously by the discharging therein of any foul or injurious substance, so that fish or other aquatic life is de- stroyed. And if, upon investigation the Commission shall find that any such streams and lakes are so, polluted and defiled, or are aflfected injuriously by the discharging therein of any foul or injurious sub- stances, so that fish or other aquatic life is destroyed, it shall be the duty of the said Commission to enter an order commanding the abate- ment of such nuisance within such time as may be fixed by the Com- mission." It would seem from the foregoing that the jurisdiction of the Com- mission over the subject of pollution relates only to the eflfect of such pollution on aquatic life and has no direct bearing upon the question of public health as affected by the pollution of streams. The Commission may, after investigation and hearing, as explained later, order the abatement of a nuisance found to exist as above It may, and often does, also suggest methods by which the abatement may be effected, but it cannot force the persons or authorities respons- ible for pollution to accept its recommended solution. In practice however, it has much the same result inasmuch as the Commission has final power to reject a method proposed as not in fact abating the nuisance complained of. ^ The result, therefore, is that the Commis- sion s approval of proposed plans for sewage disposal, etc., is fre- quently sought in advance. It is the duty of all police officers of the State to enforce the orders of the Commission. Prevention of Encroachments. This power is granted in general terms but some specific authority IS vested in the Commission to supplement the general grant It is required to examine the shore lines of Lake Michigan and the Chicago Kiver at least four times per year, to see that no unlawful encroach- ments are made upon the public waters. It has authority to inquire into encroachments or invasions on every stream, river, lake or other l^ody of water in which the State has an interest, with exceptions al- ready noted. Plans of all proposed improvements or structures of any sort in any of the public waters must be filed with the Commission and approved by it before construction, but when such improvements nave been made the Commission may permit them to remain subject to regulation by the Commission. The term ''public waters" as here used is defined as being "all open public streams and lakes capable of neing navigated by water craft for commercial uses and purposes together with all bayous, sloughs, backwaters and submerged lands that are open to the main channel or body of water and directly accessible 'n their natural state by such water craft." Hearings and Opinions. stro ^" ^^^7 ^^ ^^^^^^ ^^^^ Commission in preventing the pollution of authT'^ A ^"^^o^chments on the public waters, the Commission is realr^^'f ./'' ""^f ^^ complaints from individuals or corporations with rer^lnf / ""lawful use or abuse of the waters of the State. Upon suedK .u ^"r^ complaints a hearing may be granted and an order is- afiWf^^ the Commission defining the rights and interests of the parties ^ected and prescribing their duties. Sheriffs, marshals and the re-u- ^ 790 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 791 m lar police officers of the State are required to enforce the lawful orders of the Commission. In conducting hearings, witnesses may be sub- poenaed and compelled to attend and produce books and records. Appeal may be taken from the decisions of the Commission to the Circuit Court of Sangamon County, thence directly to the Supreme Court of the State. Levee Construction. In 1913 appropriations were made to the Rivers and Lakes Com- rnission for improving and constructing levees in and around certain cities on the Ohio, Mississippi and Illinois rivers, as follows : City of Cairo $250,000 City of Mound City 50,000 City of Shawneetown 39,000 Village of Naples 3,000 Totals $342,000 4. Procedure and Work of the Commission. The Rivers and Lakes Commission was duly organized in August, 1911, with an original appropriation of $15,000 with which to carry on its work. Soon after, plans were effected for co-operation with various state and national bodies among them being the United States and State Geological Surveys, the State Water Survey, the State Fish Commission and many others. The preliminary work of the Com- mission was almost exclusively limited to the collection of data, such as the preparation and collection of maps and atlases of the counties of the State, river profiles, facts about undeveloped water power, precipi- tation and corporation records, inventories of water power plants and drainage districts, tables of drainage areas, etc. By October, 1914, the Commission had published for general distribution fifteen bulletins related to various subjects connected with the waterways of the State. In addition to the biennial report to the Governor four supplementar}' reports have been made as follows: A Report of the Surface Water Supply of Illinois. A Report of the Prevention of Overflow of Little Wabash and Skillet Fork with maps. A Report of the Plans for the Reclamation of the Land in the Kaskaskia Valley with maps. A Report on the Water Resources of Illinois, with Appendix on Water Power and Drainage Districts. At the close of 1913 ten complaints had been received from vari- ous sources and hearings given. Five of the ten related to encroach- ments, and in three of the five no definite results were obtained either because of the inadequacy of the Commission's powers or for some other reason. In the two other cases of encroachments suits were ordered begun in the courts. Four cases related to the pollution of streams and here again the weakness of the Commission's powers were shown. In three of the four nothing was accomplished by the Com- mission — one was referred to the Chicago Sanitary District, which had jurisdiction, another was dropped for lack of authority and the third was brought to no definite conclusion. Finally, one case related to the obstruction of the navigability of the Illinois River. Here the Secretary of War was informed of the facts and the obstruction was ultimately removed. It should be noted, however, that results given above for 1913 were obtained before the recent amendments to the original law were enacted. These amendments have greatly strengthened the Commis- sion's powers by vesting police power in the Commission as well as authority to compel the attendance of witnesses and the production of evidence at hearings. The work of the Rivers and Lakes Commission relating to en- croachments along the water fronts and to pollution constitutes a very important part of its duties and bids fair to increase in importance. Encroachments are discovered usually by actual inspection of the Com- mission or its agents, or by complaints being registered by individuals interested. When information of this sort reaches the Commission an investigation is made. The investigation is almost invariably a matter involving a survey of the shore lines, which is by nature an engineering proposition. Sometimes the legal aspects of the question are also important, to determine the claims of individuals or corpora- tions concerned. When the facts are before the Commission it reaches a conclusion and if it finds that an encroachment exists contrary to law it communicates with the offenders and orders the removal of the obstruction. Unless a protest is raised no hearing is given but should the offender so desire, a hearing may be demanded. Only in the more important cases, however, are hearings necessary. Questions concerning the pollution of streams and rivers consti- tute almost half of the work of the Commission. Here perhaps even more complicated problems arise than in the case of encroachments. As noted above a strict construction of the powers of the Commission might lead to the conclusion that its jurisdiction over pollution extends only to a determination of the effect of such pollution upon aquatic life. In practice, however, the Commission has not confined itself to this limited phase of the question. For instance, on Febuary 5, 1912, the village of Plainfield was ordered to abate a nuisance arising from the discharge of raw sewage into the Du Page river, on the ground that such created a "public nuisance." On June 5, of the same year, complaints were heard against the city of Elgin on the ground that ler discharge of raw sewage into the Fox River "constitutes a menace the health and lives of the people residing adjacent to said stream; that it further operates to depreciate the value of lands adjacent to said river," and "constitutes a menace to the lives and health of per- sons all oyer the State for the reason that ice is cut and sold for human consurnption in large quantities from said polluted stream.^^s xhe 'commission found that these charges were well founded and recom- mended measures to remedy the situation. Complaints concerning pollution of streams come from various ources. Private individuals frequently submit complaints. The vardens of the Fish and Game Commission are also instructed to take _^^^^all instances of pollution and report to the Commission. Such 33See Annual Report of Rivers & Lakes Commission, 1911, pp. 21-2». > i» ^^^ EFFICIENCY AND ECONOMY COMMITTEE. reports are forwarded to the Rivers and Lakes Commission for action Fmally, the Rivers and Lakes Commission, or their agents, may dis cover instances of such cases and proceed without a formal complaint" When information of any particular instance of alleged pollution reaches the Commission it refers the matter to the State Water Survey located at the State University in Urbana. This bureau proceeds ?o make an mvestigation, to determine whether the pollution complained of actually constitutes a nuisance, such as to warrant abatement by the Commission. Pacts are assembled and recommendations sul gested, based upon the facts, and the whole forwarded to the Rivers and Lakes Commission. The latter almost invariably accepts the recommendations of the Water Survey and proceeds accordindy Here, as in the case of encroachments, hearings are had only when the importance of the case seems to demand such, or when satisfactory ad] ustment cannot be made otherwise. "^ Most cases of pollution of streams arise because of poor or inade- quate sewage facilities provided by cities and towns along the rivers Hence the tunction of the Commission in so far as they relate to such cases are constantly bringing it into direct contact with these local omcials. Ihe question arises as to the extent to which the Commis- sion m^ go by virtue of its authority over pollution in controlling the local ofhcials. In cases that have arisen, the Commission has not, in fact attempted to dictate to local authorities concerning the manner in which they may proceed to comply with an order to abate a nuisance but has sometimes suggested measures which would meet with its approval. Its authority finally to determine whether remedial action results in abatement amounts ultimately to authority to supervise to a large extent, local methods of sewage disposal. This again neces- sitates engineering skill almost exclusively. In the case of Plainfield t^nnf^ h"" ^r''''^' ^^'^ ^^"^^^. ^"^l^orities agreed, on the recommenda- t ons of the Commission, to mstall twin settling basins to remove the sludge from the sewage before its discharge into the river. Later when the village delayed in taking measures, the Commission ordered an abatement of the nuisance in accordance with the agreement. In Saniu^^ Distrf "' ^^^mmission recommended the organization of a 5. Finances. As noted above an original appropriation of $15,000 was made to the Commission. Following are the expenditures of the Commission trom date of its organization August 8, 1911 to December 31, 1912. inclusive: ' Office Salaries ^ o 01 c nn Expenses of Commissioners... '«0Q4^ Traveling Expenses *.!*.."..".!*.!*.*!! 54211 Rent, Telephone and Light ......./.. 1 559 19 Public Hearings, Supplies -KyfOAc, Slip's '^°''' ...:::::::::::::::: nS ^^^P^ 898.96 _ "^^'^[^ .$27,693.08 J^ov the biennium of 1913-1915, provision was made for an office statt consisting of a secretary, a junior engineer, hydraulic aide, two PUBLIC WORKS, PARKS AND BUILDINGS. 793 Stenographers and some extra help. A total of $30,200 per year was authorized for operating expenses, while $342,000 was appropriated to the Commission for the purposes of repairing levees at Cairo, Mound City, Shawncetown and Naples. Following are the total appropria- tions for the biennium: 1913-14 1914-15 Salaries of Office Staff (with extra help) $ 9,600.00 $ 9,600.00 Traveling Expenses 2,000.00 2,000.00 Surveys and Stream Gauging 12,000.00 12,000.00 Maps, Supplies, etc 3,000.00 3,000.00 Rent 1,800.00 1,800.00 Prosecutions 1,800.00 1,800.00 Repair of Levees 342,000.00 Deficiency 4,000.00 ..... Total $376,200.00 $30,200.00 Total for biennium $406,400. 6. Relations to Other Officials. State Fish and Game Commission. The care and management of the State streams vitally affects fish life and thus brings the Fish and Game Commission in close touch with the Rivers and Lakes Commission. The former reports cases of pollution of streams and encroachments discovered by wardens, that threaten aquatic life, and depends upon the Rivers and Lakes Commis- sion to give relief. The latter is required to co-operate with the Fish and Game Commission in the propagation of fish. State Water Survey. Both the Rivers and Lakes Commission and the State Water Sur- vey are authorized by law to collect data and make investigations re- latmg to streams. Both do so, but in the past and at the present time co-operation has been effected in order to avoid duplication. State Board of Health. There is no direct legal relationship established between these two bodies. Both, however, are given legal jurisdiction over the abate- ment of nuisances as regards the pollution of streams. In actual ad- ministration most of the authority over the subject is exercised by the Kivers and Lakes Commission. In fact complaints of pollution com- mg up to the Board of Health have been referred by that body to the Kivers and Lakes Commission. Thus although here again exists the possibility of a conflict of authorities, or at least double jurisdiction, m practice such is avoided by amicable and purely informal working relations between the departments. The Board of Health has also made several investigations relating water supplies and water resources Among these may be noted tne following: 1. Report on the Water Supplies of Illinois and the pollution of its streams (1889). 2. Advance notes of Sanitary Investigations of the Illinois River and Its Tributaries (1900). I m ill k 794 EFFICIENCY AND ECONOMY COMMITTEE. 3. Report of Sanitary Investigations of the Illinois, Mississippi and Missouri rivers (1904). State Laboratory of Natural History. The Laboratory of Natural History is organized for the purpose of making scientific investigations. It has for many years interested itself in special studies of stream pollution and its effect upon aquatic life. The Laboratory has co-operated v^ith the Rivers and Lakes Com- mission by furnishing valuable data on this subject. It is now co- operating with the Rivers and Lakes Commission in conducting a special investigation of Illinois river problems. Illinois and Michigan Canal Commissioners. The Canal Commissioners and Rivers and Lakes Commissioners are not legally or actually associated in any way. Geological Survey. The Geological Survey has published several bulletins relating to water supplies. It has from time to time co-operated with state of- ficials in making surveys relating to public waters and has recently been engaged in a survey of lands subject to overflow. Public Utilities Commission. j Through its authority to regulate rates and service of public utili- ties, the Public Utilities Commission of the States has some jurisdiction over water resources. Included among utilities over which it has su- pervision are privately owned water works, wharfage or dock corpora- tions, and corporations engaged in water transportation. Through its authority over water front utilities it may exercise extensive regulative powers over shore lines. As an illustration of its connection with the Rivers and Lakes Commission a recent case may be noted. The Utili- ties Commission while investigating complaints as to water service rendered by a private concern in Harrisburg discovered that the source of most of the trouble lay in the pollution of the source of water sup- ply caused by the discharge of raw sewage into the river. The question • of pollution was immediately referred to the Rivers and Lakes Com- mission for settlement. Drainage and Sanitary Authorities. With the exception of the Chicago Sanitary District, local drainage authorities are loosely connected to the Rivers and Lakes Commission, by the requirement that plans and specifications for works which they undertake must be filed with the Commission. In practice many local drainage officials call upon the Commission for advice and suggestions; and in this way the Commission has sometimes been influential in shaping the local plans. Municipal Authorities. Municipal officials are required to file with and obtain the approval of the Rivers and Lakes Commission for all projected improvements along the shores of streams or other bodies of water. The Commis- sion through its powers concerning pollution, also exercises consider- able control over the installation of local sewage systems. PUBLIC WORKS, PARKS AND BUILDINGS. 795 3. Co-operative Movements, In order to overcome somewhat the obvious disadvantages of poor organization the various departments and commissions have from time to time entered into co-operative undertakings of different sorts. One of the best illustrations of such co-operation may be seen in a recent action taken at a joint meeting in the Governor's office at which were representatives of the State Laboratory of Natural History, Riv- ers and Lakes Commission, Fish and Game Commission and the -Soil Survey Bureau. The meeting was called at the suggestion of the Director of the Natural History Laboratory in order to discuss the different aspects of problems connected with the Illinois river. The result of the conference was a decision to employ competent engineers to make an exhaustive study of the river, keeping in mind problems of navigation and transportation, the fishing industry, reclamation and overflow. Engineers have accordingly been engaged: 1. To assemble existing: data and study the flow of the Illinois river and Its principal tributaries from all the available data obtainable, relating to the maximum flows, the yearly seasonal and short time variations, the magnitude of these variations and their duration, and draw such conclusions as may be practicable as to the flow likely to prevail in the future taking into consideration the flow of the Chicago Drainage Canal present and probably future. 2. To assemble existing data on gauge heights, and so far as possible, correlate gauge heights and flow at salient points upon the river. To ascertain from existing maps and records gauge readings the area of overflow of the river for each foot in rise of the level of the low water of 1901. To estimate the existing storage, its diminution by land reclamation past and probable future, and the effect upon flood heights by reason of land reclamation and the channel restrictions incident thereto. To study existing fisheries, their value, the tendency of increase and decrease, the cause, the effect of land reclamation on fisheries, and the effect of the sewage of Chicago and other municipalities. To ascertain the extent of land reclamation by diking within the valley of the river and forecast as accurately as possible the extent to which diking operations will be continued in the future, if present policies are pursued and the effect upon agriculture upon said districts re- sulting from the exclusion of flood waters. To estimate as closely as practicable the effects of the removing of existing dams in the Illinois river upon floods, fisheries, agriculture, reclamation and navigation. After assembling the above, to outline the most favorable plans for harmonizing the various interests affected to the end that the largest return may be secured from the sum of all, estimating costs as far as practicable from existing data. At the conclusion of the study the engineers are to embody the results^ in a written report to be submitted to the Rivers and Lakes <-ommission. /. Summary and Conclusions. K Jk^ Rivers and Lakes Commission was first organized in 1911 with Droad but vague powers but with no police authority with which to en- force them. Under these conditions, the Commission confined itself '^rgely, but not exclusively, to the collection of data relating to the water resources of the State. After the strengthening of the powers of ^^^ ^^mmission in 1913, it has been engaged in supervising the waters nci shore Imes through its authority over encroachments on the water 5. 6. 7. 8. ; I 796 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 797 n fronts and pollution of the waters of streams. Under appropriations of 1913 the Commission is now also engaged in the construction of State levees. The main functions of the Rivers and Lakes Commission relate to: . 1. Investigation, 2. Regulation, 3. Construction. Its legal authority to investigate problems relating to waters and water resources, the Commission shares with the State Board of Health, State Water Survey, the Laboratory of Natural History and Geological Survey. In practice most of the Commission's work of investigation is now performed by the State Water Survey. The Com- mission's regulatory authority relates to encroachments and the pollu- tion of streams. With respect to the former the Commission is the only State body with jurisdiction, save, possibly, the Public Utilities Commission, but its authority is curtailed by exceptions in favor of independent action by some local city and park officials. Its regulatory authority over pollution it shares, in law but not in fact, with the State Board of Health. The authority of the Commission to construct levees is not granted specifically but may easily be implied from the broad general powers conferred upon the Commission. Comments and Suggestions, The powers of the Rivers and Lakes Commission as at present defined by law are too vague and indefinite, and are susceptible to varying interpretations that are likely to lead to conflicts of jurisdiction with other State authorities. It is desirable that the Commission should have broad powers but the extent to which they affect those of other State and local officials should not be open to question. At present the Rivers and Lakes Commission could absorb important functions of the Fish and Game Commission, State Water Survey, some of the State Board of Health and several other bodies without seriously straining its powers. The Commission's power over encroachments should extend to all waters of the State whether artificial or natural. Local drainage authorities should be required to file plans and specifications of improvements and receive the approval of the Commission of such plans before undertaking construction work affecting drainage. Control over the pollution of streams should be vested in the same authorities that control the question of water supply. Pollution of streams almost invariably affects sewage disposal and problems of sewage disposal and water supply are very frequently so closely related that one cannot be settled adequately without consideration of the other. Many cogent reasons may be advanced in favor of placing both under the jurisdiction of the State Board of Health. However, in view of the fact, that at present the question of pollution is being suc- cessfully administered by the water authorities, it is suggested that they retain jurisdiction in this field and assume the additional function of supervising water supplies. If this is done the waterway officials should be given definite authority to approve or reject all plans for construction or alteration of local water works systems as well as sewage disposal systems. Inasmuch as the important functions in the administration of waterways are of an engineering nature, it is suggested that a single commissioner be placed in charge and given supervision over the con- struction and maintenance of levees and other public works pertaining to waterways that rnight be planned in the future, as well as super- vision over local drainage improvements, sewage disposal systems and water works systems. In hearing and deciding complaints as to pol- lution of streams or encroachments he might constitute one member of a board on which would also be represented the Fish and Game authorities and a third person. The remaining functions of the pres- ent Rivers and Lakes Commission could be very properly performed under the supervision of a single Commissioner. D. GENERAL SUMMARY. There are at least eight State offices, boards and commissions performing functions related in some way to the water resources of the State. Three of these— Rivers and Lakes Commission, Illinois and Michigan Canal Commissioners and State Water Survey are inter- ested exclusively in water resources. The Fish and Game Commission IS largely concerned. The other four have only a secondary inter- est ni the subject. They are the Public Utilities Commission, the State Geological Survey, the State Board of Health and the State Laboratory of Natural History. Following is a statement intended to indicate the general char- acter of the functions relating to water resource^performed by each of these State offices : I^i\ ers and Lakes Commission — Collection of data, investigation, etc. Control and improvement of Navigation. Water Power. Water Pollution. Control of Water Fronts, etc. Conservation of aquatic life. Reclamation and Drainage. Public Utilities Commission- Control and improvement of Navigation. Control of Water Fronts, etc. Water Supply (Control of water works). «oard of Health- Collection of data, investigation, etc. Water Pollution. Water Supply (control of water works), ^ish and Game Conservation Commission. Collection of data, investigation, etc. Conservation of aquatic life, '"'nois and Michigan Canal Commission- Control and Improvement of Navigation. ^ Water Power, ^tate Water Survey— Collection of data, investigation, etc. » A-ahoratory of Natural History— Collection of data, investigation, etc. Ecological Survey- Collection of data, investigation, etc. I 798 EFFICIENCY AND ECONOMY COMMITTEE. The Rivers and Lakes Commission overshadows all the other departments m the scope of its powers. It exercises in some way jurisdiction over each function mentioned save only that of water supply Six of the eight State offices have authority to collect statis- tics and make investigations; three have direct authority over river improvements for navigation purposes; and two are concerned with each ot the following: Water pollution, water supply, water power encroachments on water fronts and conservation of fish life Thu« with respect to most of the functions relating to water resources there IS a possibility of duplication of work due to the fact that there arc two or more sources of authority over one subject. Administration of the waters and waterways is decentralized Ihere are eight State offices with varying degrees of authority. In addition there are numerous local authorities in most cases independent ot State control. The question of water supply control is almost exclusively a local one while drainage and reclamation projects are in the hands of local autonomous districts. Of the four important water departments of the State system- three— Rivers and Lakes, Illinois and Michigan Canal, and Fish and Oame are organized as commissions, appointed by the Governor, and independent of each other. The fourth, the State Water Survey has powers of investigation only and is under the State University. It does not seem desirable under present conditions, to attempt to consolidate all the activities of the State relating to water resources mto one department. On the other hand there is manifest need for greater concentration of authority than exists, in order not only to center responsibility for the performance of administrative duties but to make possible the formulation of a State waterway program that will take into consideration all factors involved. The administration ot the Illinois and Michigan Canal should not be completely separated from and independent of all other waterway authorities. There is also need of more effective State control over drainage and reclama- tion projects. The use of the waters for purposes of domestic con- sumption and for general municipal purposes is not subject to State regulation. It would seem desirable to have some State supervision over local water plants. There should, furthermore, be some definite legal connection established between the waterways authorities and hsh and game authorities, particularly because of the close association between problems of fish conservation and waterway programs. To summarize, it is suggested: 1. That the functions now performed by the Illinois and Michigan Canal Commissioners and the Rivers and Lakes Commission be consolidated into one authority having general jurisdiction over waterways. That this authority should be one person rather than a Commission. Ihat the State Waterway authorities should be given more definite legal control over local drainage plans and local water plants. That provision should be made for a more effective organization and definition of the relations between the various authorities having power over water resources. 2. 3. III. FISH AND GAME CONSERVATION COMMISSION. 1, INTRODUCTION. Fish Legislation. No attempt was at first made by the State to control or regulate in any manner the taking of fish from the waters of the State. In 1857 the sale or reception of fresh water fish in the Chicago markets was forbidden except after inspection by persons appointed by the city council. In 1861, an attempt was made to control the taking of fish from the streams and lakes. In that year fishing with a net was prohibited in a certain arm of the Illinois River in LaSalle county, while in Rock Island county fishing was made illegal during the periods between June 1 and August 1 ; and from December 1 to the first of the following April. The latter Act was repealed by the next General Assembly. During the 60's some sort of restrictive fish legis- lation was enacted at nearly every session of the legislature, but all of the Acts were local in that they applied only to. certain rivers or streams and most frequently only to certain stretches of a river. These laws either forbade fishing with nets or established a closed season (usually the spawning season) during which no fishing was permitted. Special legislation for the protection of game and fish was definitely prohibited by the Constitution of 1870. The first general law alfecting the entire State was enacted in 1872. This Act forbade the placing of dams, seines, nets, drags or other obstructions across any of the streams, rivers, lakes, ponds or other water courses, that would interfere with the natural passage of fish up and down such a water course. Seines with less than ly^ inch meshes were forbidden. The justice of the peace was authorized to enforce the provisions on com- plaint from any source, and impose fines of from $10 to $50 for infractions of the law. This Act was amended in 1879 by permitting dams and other obstructions but making it the duty of the owners of such to install suitable fishways. The size of the mesh of the seine allowed by law was also changed in 1879 to 2 inches, and has so remained up to the present time, although fish commissioners have frequently recommended reversion to the 1}^ inch mesh in order to encourage destruction of the gar. By the latter part of the 70*s it was coming to be realized that the State should do more to conserve the fish industry and protect the nsh in the public streams. With spasmodic regulation afifecting only hrnited sections the waters were fast approaching depletion. The situ- ation led to the enactment of a law (May 13, 1879) which for the first time provided for a permanent State organization to deal with the I > 800 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 801 fish question. The Governor, with the approval of the Senate, was authorized to appoint a Board of Fish Commissioners to consist of three persons, one being chosen each year for a three year term. They were to receive no compensation, but $300 was allowed per year for travelmg expenses for the board. The duties of the board were at first confined ot measures to mcrease the fish supply rather than preventive measures to protect the existmg supply. It was authorized to establish fish hatcheries and breedmg establishments, employ a "practical and competent" fish cul- turist to act as superintendent and have general charge of such estab- lishments subject to direction by the board. The board was also authorized to take all measures within their means to propagate and increase native food fishes and to introduce new varieties. The work of the board consisted at first largely in catching native fish along the sloughs, holes and lakes of the Mississippi and Illinois rivers and distributing the catch over the State to stock other streams or private waters. A fisli hatchery was established at Havana, on the Illinois river, and about 1896 a receiving and distributing pond was established at Urbana. The latter was used as a general storage place for fish, particularly bass and croppie, and as a general distributing center for the eastern section of the State. In general the enforcement of the laws relating to fishing was left ^o the local officials. Any person might lodge a complaint before a justice and if a conviction of violation of the law resulted the informant was entitled to one-half the fine imposed. The other half went to the local school fund. In parti«^ular the constables were sup- posed to act as informants. In 1897 steps were taken to insure a more rigid enforcement of the laws. On request of the Board of Fish Com- missioners the Governor of the State was authorized to appoint fish wardens to enforce the fish laws. They were removable by the Gov- ernor and received the same compensation as that allowed the con- stables. They were vested with authority to serve processes, arrest offenders and prosecute violators of the law. In 1903, the number of such wardens was fixed at five and they were given a salary of $900 per annum, in lieu of a percent of the fines imposed as form- erly. Two years later the Governor was authorized to appoint one or more deputy wardens in each county of the State to assist the wardens m the enforcement of the laws. The deputies, however, instead of being granted a fixed salary were paid on the same basis as were constables, viz.— one-half of all fines imposed as a result of their action. In 1911 still further changes were made, particularly in local organization, for enforcement of the fish laws. The State was divided into nine districts and one warden, with a salary of $900 per annum, was allotted to each. The Governor also appointed five deputy fish wardens for each district, whose compensation was fixed at $2 per day and expenses not to exceed $35 per month. The State board was retained with powers and duties similar to those previously exercised. Game Legislation. The history of the game laws of the State resembles closely that relating to fish. No restrictive legislation with regard to game is to he found prior to 1855 when an act was passed declaring it unlawful to kill, trap, buy or sell deer, fawn, wild turkey, grouse, prairie chicken or quail in certain seasons of the year, under penalty of from $5 to $50. Although the law was couched in general terms it applied to less than half the State, since 57 of the then existing 100 counties were specifically exempted. Ten years later in a revision of the game laws, forty-eight counties were exempted and from time to time thereafter tlie number of such was reduced. For nearly a half century after 1855, numerous law^s were passed relating to game but most of them merely added to the list of wild animals or game fowl to be protected. In 1873 many species of wild birds were included in the list. The laws established a closed season for certain groups of birds or animals but, with a few exceptions, did not prohibit entirely. In response to a movement throughout the State for the con- servation of w^ild animals and birds and for a more effective enforce- ment of existing game laws a law was passed in 1897 providing for the appointment of a State Game Commissioner, a game warden for each congressional district and one or more deputies for each county. The Game Commissioner was appointed by the Governor and held office during the tenure of the appointing authority. His duty w^as to enforce all the statutes relating to game and birds, bring action against offenders against the law, prosecute violators and recover fines and penalties, and superintend the issuance of hunting licenses. His sal- ary was $2,500 per annum, and he was required to render an annual report to the Governor. Under an act of 1903, which modified to some extent the law ot 1897, the State Game Commissioner was authorized to appoint w^th tlie approval of the Governor, ten game wardens (the number was increased to 16 in 1907) the appointments to be based "upon efficient service only and without regard to political influence." The Com- missioner was likewise authorized to appoint deputy game wardens irom each county of the State w^ho were placed directly under his supervision and control. The compensation allowed the wardens was y^O per annum while the deputies were entitled to one-half of all ines imposed as a result of action hrought by them, and a per diem 10 he fixed by the Came Commissioner, but not to exceed $2 per day. 2. PRESENT ORGANIZATION. In 1913 the fish and game laws were completely revised, and all ^iie functions of the State relating to the protection and conservation a fh 1^"^^ ^"^ ^'^^ ^^^^^ ^^'^^^ vested in a single authority, know n as the Fish and Game Conservation Commission. The Commission onsists of three persons, appointed by the Governor and Senate, one JJi. \vhom is designated by the Governor as the President of the Com- i^sion. For local administration of the laws the State is divided 10 six districts and one fish and game warden is appointed by the I 802 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 803 Commission for each district. The Commission also appomts ten deputy wardens for each district who serve continuously and, in addition, special or temporary deputy wardens not to exceed sixty in all. Other officers, employes and agents may be engaged by the Com- mission at its discretion. Besides the regular corps of officials named above all constables of the State are made ex officio special deputy wardens to serve as such without compensation other than one-halt of all tines recovered in cases in which they have filed complaints. The compensation of the fish and game officials and staff as pro- vided in the last appropriation ordinance of 1913 is as follows: Commissioner, President $5,000. per annum Commissioners (2) each i cm « «« Wardens (6) each i om «' Deputy Wardens (60) each l.fOU. Extra Deputy Wardens (60) each (1913 only) 100. per month for 2 mo. Stenographers (2) each , ^- P?^ ''".?""' Chief Clerk 1.800. ^^ ^^ Clerk 1.200. ^^ ^^ Messenger "^^• Other expenses authorized by the appropriation act of 1913 are for the following services : Traveling expenses $30,000. per annum Office expense, printing, etc } c'mn' " " Fish propagation and protection lonnn '« " Maintenance of State Game Farm 7 cm •« Purchase of launches c'nm* " " Maintenance of launches '^^' o^-yrA '^nn The total appropriation for the biennium aggregates $361,/ UU. 3. POWERS AND DUTIES. Broadly speaking the powers and duties of the new fish and game commission are much the same as those previously vested in the I'lsh Commission and the Game Commissioner. The new body is required to secure the enforcement of the fish and game laws, take measures to conserve the fish and game of the State, and report annually to the Governor as to progress made. Enforcement of Fish and Game Laws. The members of the Commission are made responsible for the proper enforcement of the game and fish laws and for that reason are clothed with direct authority personally to make arrests, etc. The president of the Commission is the executive chief and acts as general supervisor and administrator over the staff of wardens and deputies. The Commission appoints the wardens and deputies, requires them to report regularly and issues orders to them from time to time. Conservation of Fish and Game. The duties with reference to conservation form the most impor- tant part of the work of the Commission. In the first place, it is required to select suitable locations and establish fish hatcheries and breeding places for the purpose of increasing the number of native food fishes and introducing new varieties that give promise of flour- ishing in Illinois waters. Such hatcheries are to be under the manage- ment of a fish culturist selected by the Commission and under its direct authority. To aid in the work of investigation and conservation the commissioners or their agents are fully empowered to catch fish at any time or from any place they may see fit for the purpose of destroying objectionable fish or for purposes of propagation or distribution. The Commission is also authorized to set aside fish preserves in waters within the jurisdiction of the State. When such are estab- lished notice of their location in each county, in which the preserve is located, must be published at least once in a newspaper. Conspicuous notice must also be posted at the outlet of the preserves and at high- way crossings. Such preserves are closed for fishing purposes except with hand and line or rod and line. Reports to Governor. The Commission is required to submit annual reports to the Gov- ernor of the State setting forth the accomplishments of the year and recommendations of desirable alterations in the laws. Wardens and Deputies. In the enforcement of the laws the deputies are clothed with full police powers. It is their duty to detect violations of the laws and cause the arrest and punishment of offenders. If they have reason to suspect an individual or corporation of the possession of game, fowl or bird contrary to law it is their duty to make an affidavit of tlie fact before the justice of the peace who issues a search warrant and orders the seizure by the constable of all such found. No State officials are held liable for damages incurred by wrongful seizure. The wardens or their deputies may themselves seize on sight without pro- cess all fish or game of illegal kinds found in the illegal possession of a person with a license. They may, moreover, seize all nets and other devices for catching or killing fish that do not conform to the require- ments of the law. When complaints are made as to infractions of the law, the war- dens or deputies must investigate such complaints and if they appear to be well founded cause proceedings to be instituted against the offenders. In administering their duties the wardens and deputies are vested with full power to execute warrants, etc., as any justice 01 the peace or constable. They may arrest on sight and without warrant and arraign before a court any person actually detected in violating the law. 4. ADMINISTRATION. Under the Act of 1913 the machinery for the enforcement of the tish and game laws, although modified somewhat, remains substantially as It had previously existed under independent managements. One commission now has charge of both fish and game. The headquarters Or the commission are located in Springfield where regular meetings are held on the second Wednesday of each month, and at other times ch A ^^^^ °^ ^^^ president. At these meetings new lands are pur- nased, hatcheries or ponds are established, fish preserves located and sports from wardens received and discussed. » 804 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 805 Most of the work which devolves upon the commissioners is per- formed outside the regular sessions. For administrative purposes the State is divided into three divisions — northern, central and southern — and one commissioner is assigned to each and has the charge of the wardens, fish preserves, hatcheries and other establishments therein. The main functions of the Commission relate to : Administration of fish and game laws. Fish rescue and distribution, Fish preserves. Fish hatching, , State game farm. Administration of Fish and Game Laws. Here the work of the Commission is purely administrative in character. It appoints 'wardens and deputies, issues directions as to proper methods of procedure in general and in particular cases and supervises them in the enforcement of the laws. It also sub-divides the districts and assigns a deputy warden to each sub-division. Fish Rescue and Distribution. This work continues to be an important function of the fish and game officials as it was that of the fish commissioners. For purposes of distribution, fish are obtained from the low grounds along the Illinois and Mississippi Rivers. During flood seasons the fish find their way into the shallow waters of the low lands that furnish admirable feeding and spawning grounds. With the return of the streams to their normal levels many thousands of them are left stranded. The Commission collects these and distributes them through various sec- tions of the State or returns them to the bed of the river. In a recent report it is stated that 650,000 fish have been rescued in the immediate vicinity of Galena alone. Fish Preserves. Several places along the principal fish streams have been desig- nated as fish preserves and reserved, according to law, for fishing with rod and line only. These include the Rock river and its tributaries, Quincy Bay, Calumet, and other streams and waters, aggregating a total of about 1,000 miles. Fish Hatching. To give artificial aid in the conservation of fish life, a hatchery was established at Havana on the Illinois River some years ago. Tt however, was allowed to deteriorate and had been practically aban- doned until the new Commission caused' it to be rehabilitated. It is now used particularly for the propagation of commercial varieties of fish, such as the carp and buflfalo, that are in demand in the markets as cheap food fish and that thrive in the muddy streams of central and southern Illinois. During the last year 10,000,000 pike-perch eg.e^s were hatched and distributed from the Havana hatchery. Buffalo spawn has also been obtained and hatched to some extent and the Commission has recently decided to enlarge the Havana hatchery to turn out 50,000,000 buffalo fry a year. The hatchery is under the supervision of the warden of the district in which it is located. In addition to the Havana hatchery, fish ponds have been estab- lished at Spring Grove, McHenry county, in the northern section of the State. The property of the Commission at this place covers forty acres, twenty-five of which was just recently (spring of ^14) pur- chased for bass ponds. When completed there will be seven or eight ponds in the plant with a capacity of about 10,000,000 bass fry per year. It is estimated, that the present ponds will produce at least 3,000,000 fry during the present year. The Spring Grove ponds are being utilized for the propagation of black bass and other game fish that thrive particularly well in the lakes and streams of northern Illi- nois. A hatchery is also to be constructed at Spring Grove with a capacity of 50,000,000 fry and to be used principally for pike-perch. The Spring Grove ponds, and hatchery when completed, is to be under the direct supervision of a fish culturist selected by the Commission. State Game Farm. Fo? the preservation and propagation of various forms* of wild fowl, birds, etc., indigejious to Illinois or capable of thriving therein, a State farm has been established at Auburn, a suburb of Springfield. At present the farm consists of 199 acres and is in charge of a deputy warden assigned to the work by the Commission. 5. RELATION TO OTHER STATE FUNCTIONS. The work of this Commission is very intimately associated with some of the other State departments, particularly with reference to the care of fish. The pollution of streams, a subject under the jurisdiction of the Rivers and Lakes Commission and of the State Board of Health, vitally affects fish propagation in that it seriously interferes with the liatchmg of eggs and often destroys the young fish. In the 1909 report of the fish commissioners it is declared that more fish were being de- stroyed, both in maturity and in embryo, by refuse from manufacturer^ and other establishments along the streams than by all other methods used by the fishermen and anglers. An investigation was made of the effect of the opening of the Chicago Sanitary Canal upon aquatic life in the Illinois river. The conclusion reached was that the result was temporarily unfavorable to the interests of the fish commissioners ^" i u ^* ^^^^ced the total catch by increasing the size of the current and thus permitting the fish to seek refuge in deep water. Fish seem to have been driven away from the upper stretches of the river and to have concentrated in the regions lower down. According to figures lurnished by one of the commissioners there was a loss in the catch ot fish for 1908 over the preceding year of 2»7 per cent from La Salle to Mossville (upper Illinois), while there was a gain of 70 per cent trom Mossville to Meredosia (middle Illinois) and another loss of 37 per cent from Meredosia to Grafton, the latter at the mouth of the Illinois. hv ^^^ .^^^^* °^ sewage upon the fish supply is further illustrated "y conditions along the Chicago lake front. When the. sewage of the .! ■i rl"#n** 806 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 807 11 city was dumped into the lake the large numbers of bass and other white fish almost disappeared. Since, however, the sewage has been diverted into the Illinois there has been a remarkable mcrease m the number of these varieties of fish found in that vicinity. The question of fish propagation and pollution of streams are, therefore, very closely associated. As a part of their function of caring for the fisfi the wardens are instructed by the Fish and Game Com- mission to report all cases of pollution they may find. Such data is then forwarded to the Rivers and Lakes Commission for action. Drainage and levee districts also directly aflfect the work of the fish conservation. In the statement above concerning conditions along the Illinois river it will be noted that there appears a loss in the lower stretches of the river. This is attributed largely to the construction of levees and drainage dams along this section, which prevent the fish from getting out into the shallow waters that serve as natural feeding or breeding grounds. It is claimed by some that the conse- quent loss in fish more than counterbalances the gain in farm values of the land reclaimed by the levees. To summarize, the following State departments, offices and com- missions have some definite relation to the work of the Fish and Game Commission : 1. Rivers and Lakes Commission. Pollution of Streams. Levee Construction by State. 2. Board of Health. Nuisances and Related to Stream Pollution. 3. State Water Survey. Special Investigations to determine effect of pollution on aquatic life. 4. State Natural History Laboratory. Scientific investigations relating to aquatic and biological life. 5. Local Drainage Officials. Control of stream flow by levees and ditches. 6. COMMENTS. The principal functions performed by the Fish and Game Com- missioners concern the enforcement of the fish and game laws and measures to conserve fish and game. The latter consist principally i" establishing and maintaining fish hatcheries, fish preserves and super- intending the State game farm. The nature of these duties does not justify the existence of a commission as the administrative head of the department. At least equal efficiency could be obtained by substituting a single commissioner who could be held more directly responsible and whose control over the administrative machinery could be made more eflFective .than if authority were diffused. The services performed by this department are very closely asso- ciated with those of several other State offices, particularly the Rivers and Lakes Commission, and it would seem advisable to establish a definite organic relationship of some sort with them. In practice co- operation has been relied upon to attain the ends desired. Such co- operation should be facilitated by the establishment of definite legal connections. PUBLIC WORKS, PARKS AND BUILDINGS. 809 1» •• IV. STATE CONTROL OF NATURAL RESOURCES.^* Public regulation of natural resources has only in recent years become of importance in the United States. Early laws were usually administered by local authorities or through the courts. Preceded by some investigational surveys, direct control through State offices began after 1860; and since 1900 there has been a distinct tendency towards greater state control, and to a more centralized administration. Early Local Administration. Early laws for the protection of fish and game were enforced by local authorities and by judicial proceedings. Boards of County Com- missioners were often authorized to appoint game wardens, who also had authority over fish and forests. In New England, towns often had game wardens and foresters. Boards of County Commissioners also usually had some power oyer the use of sources of water supply. City or town authorities had similar powers to construct and operate water supply systems ; the pollution of water supply was made a misdemeanor; and the maintenance of any source of pollution, a nuisance subject to abatement by injunction or other court proceedings. Laws were early- passed in most states for the formation of local drainage associations or districts ;^^ and in the Western states for local irrigation projects. A general characteristic of all such laws was the failure to provide for any uniformity of administration, either through comprehensive investigations, uniformity of local organization or control by a central State organ. Often there was a confusion of overlapping local dis- tricts; there was no power for the execution of adequate plans; and in many cases property was not protected from unwise or dishonest projects. With the increase of population in numbers and density the im- portance of these problems was better realized; while constitutional 34 Data compiled and analyzed by Quincy Wright, A. M. BIBLIOGRAPHY. The State Administrative Organization was taken directly from the State Laws am Statutes. The Reports of the Pennsylvania Water Supply Commission were «^^j"'r ;"' The National Administrative organization was taken from J. A. Fairlie, National Admini- tration in the United States, N. Y. 1905; American Statesman's Year Book, N. «:,/^t5; and Congressional Directory, Washington, 1914. On Geological Surveys, Frank v>.^ Wolf, Work of the State Geological Surveys in Mining and Scientific Press, vol. ^°' Number 1, p. 35, San Francisco. Jan. 3, 1914, and C. W. Hayes, the State Geological bur veys of the U. S Geological Survey Publications, Bulletin 465, Washington, 1911, >\ci consulted. The latter contains an excellent historical account, as well as discussion ot i powers and work, and reprint of the laws governing all State Geological Surveys. Forestry Conservation an article in the Review of Reviews, Vol. 50, p. 46, July, ^^ ' was read. , ^ . i.^ 35 In Indiana special acts were passed from 1799 to 1852 and a general state la in the latter year. In New York, the revised statutes of 1852 contain general prov as to drainage. In California, drainage laws were passed as early as 1867. isions provisions against special legislation (beginning about 1850) have re- duced the volume of special acts, while general laws have in turn been followed by the development of State administration. Scientific Investigation of Natural Resources, The earliest State action in regard to natural resources was in pro- viding for Geological Surveys with powers to investigate geological formations, minerals, coal, oil, water supply and other natural resources of the State. North Carolina formed the first such survey in 1823, South Carolina followed in 1824, and most of the southern and eastern States made similar provisions during the next two decades. The west- ern and middle western states followed with similar organizations in the fifties, sixties and seventies. Many of the surveys were temporary ; and some of the states have had as many as three or four surveys, each lasting for a period of five to ten years. Only four states, Idaho, New Mexico, Montana and Utah have never had surveys'. Thirty-eight states, at present, have such authorities. Aside from the work, of Geological Surveys, Boards of Agricul- ture, Experiment Stations and State Universities have frequently car- ried on similar work, and occasionally special surveys have been in- stituted. Following the discussion of conservation problems at the meeting of State Governors in the White House in 1908, a number of States have established conservation commissions for a more comprehensive survey of natural resources. Ten States have such bodies. Utah and Oregon provided for a conservation commission in 1909. Louisiana, Maryland and Rhode Island created conservation commissions in 1910 ; New York, Wisconsin, Kansas and California in 1911; and Nebraska in 1913. The functions of most of these bodies are investigatory and supervisory over other investigatory State bodies, for the purpose of correlating their work. The Conservation Department of New York has, however, larger powers of supervision and control. State Control of Fish, Game and Forests. In 1866, Vermont provided for a State Fish and Game Commis- sioner, and New Hampshire followed in 1869. Other States have fol- lowed, though in the majority of cases the control of fish and the con- trol of game was at first assigned to distinct authorities, — very often a fish commission being created, while game protection was left to local authorities. In the decade between 1890 and 1910, however, the two authorities have been concentrated in most cases ; and now thirty-four States have a fish and game commission or similar body. Forestry control by central State authority was scarcely begun until the decade following 1820, although a number of States gave incidental powers over forestry conservation to their Boards of Agri- culture or Land Office. Maine provided for a State Forestry Com- missioner in 1891 ; and New Hampshire made a similar provision in |o93. Other States have followed and now twenty-five States have lorestry commissions or similar bodies with general jurisdiction over the care of forests and the prevention of fires. Most of these States nave set aside forest reserves, which are under the immediate care of 810 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 811 m the Forestry Commission ; and many of them, especially m the Appa- lachian and Rocky Mountain regions, have given consent to the acqui- sition of land by the National Government for forestry reserves. Three tendencies toward centralization of administrative control may be noted: (1) The concentration of forestry, fish and game under one department, usually called a forestry, fish and game com- mission. Ten States, of which West Virginia and Colorado are typical, have done this. (2) The extension of the functions of the depart- ment or board of agriculture to embrace forestry, fish, game, and often other matters such as drainage and irrigation. In fifteen States, the authority of the Board of Agriculture extends over forests; and in Virginia, West Virginia, Georgia, Tennessee, North Carolina and Ohio it extends also over fish and game. In Ohio the department con- trol is most effective ; an Act of 1913 created a Department of Agri- culture to supersede eight previously distinct boards and commissions, and gave it effective control over fish, game, and forests. (3) The establishment of a conservation department or commission. In most of the ten States with such commissions, their powers are simply those of investigation and recommendation. But in Michigan, the Domain Commission has control over State lands and the man- agement of State forest reserves. The New York Conservation Com- mission has much more extensive authority. It supersedes all previous departments interested in conservation; and establishes control of fish, game, minerals, forests, water, drainage, •and reclamation under one centralized department, with adequate powers to enforce the law. State Control of Water Supply and Drainage, During the first half of the nineteenth century there was an active period of State construction of canals and river improvements; and a number of States still maintain such waterways, — as in New York, Ohio and Illinois. But these are now of little importance, except m New York, where a new and enlarged system of cginals is in process of construction. State control over water problems next developed in connection with the State Boards of Health. The first of these was established by Massachusetts in 1869; and other States soon followed. In the earlier laws there was no specific mention of control over water supply ; but under the general power to take measures for the public health and to abate nuisances. State Boards of Health came to exercise sonie power to prevent water pollution. More recently (mainly since 1900), ' authority over water pollution has been definitely conferred on State Boards of Health ; and in thirty-six States such power is now^ granted to some extent. In many cases, however, the power is given incident- ally, and there is no effective provision for securing its enforcement. The Ohio law of 1910 is the most effective ; and this has been followed in Wisconsin and Indiana. Parallel with this development of the powers of State Boards of Health has been the creation of new State authorities for the control of water supply, irrigation and drainage, — different aspects being em- phasized in the several States. New Jersey, in 1882, created a water storage commission, in 1899 a sewage and drainage commission ; and in 1907 a water supply commission, with extensive powers not only of regulation and supervision, but also for the construction and operation of water works. New York and Pennsylvania created water supply commissions in 1905, and California in 1913. Minnesota, Florida and Texas have established special authorities for the control of drainage and reclamation works. Illinois in 1911 created a Rivers and Lakes Commission with an extended scope of authority over public waters. Most of the far western States have provided for a State Engi- neer, or State Irrigation Board, with control over water supply for irrigation, water power and domestic consumption, and in some States over drainage works. The development since 1907 of State control over public utilities, by railroad or public service commissions, has included the regulation by such commissions of the rates, service and facilities of urban water supplies. An Act of Wisconsin, in 1911, to extend further the con- trol of the Railroad Commission over water power companies has been held to be unconstitutional. Functions in relation to some aspects of water and drainage prob- lems have also been conferred on other State authorities. Thus some power in drainage matters have been conferred on the geological survey in North Carolina and Illinois, the State Land Board in Oregon, the Department of Agriculture in Washington, and the Engineering Schools of the State Universities in Wisconsin and Kansas. To a large extent this recent development of State control has been distributed among a number of authorities, and has often been accompanied by the creation of new boards and commissions. Some effort towards a better co-ordination and concentration of effort is to be seen within the last few years. The New York and Pennsylvania water supply commissions represent an attempt to combine a large part of the State control over water problems in one department. New York has gone even further in the Conservation Department, created m 1911, which included the water supply commission as one division with other divisions for drainage and reclamation, and for fish, game and forestry conservation. Conservation commissions in other States provide an investigational and advisory body as a means of co-ordinat- ing the work of various agencies in special fields. The need for a more effective organization is also indicated by the steps which have been taken to secure better co-ordination between the several branches of the United States Government which have to ao with water problems. National control in these matters is now exercised to some degree by no less than twenty bureaus or offices in hve executive departments and several detached services. At a meeting held in Chicago on June 17, 1914, of those interested, plans were dis- cussed for reorganizing these services so as to secure greater co- ordination. 812 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 813 Vl Character of State Authorities. The scope, methods and purposes of State activity in relation to natural resources varies widely between the different States, and in the same State between the various objects of State action. The first stage is naturally that of securing information, by collecting existing data, and by more and more intensive investigations, and scientific experiments. This leads easily to the work of education, — of the gen- eral public, of trained experts, and of public officials by means of advice and recommendations. Another stage is reached, when the State authority is given more definite police powers of supervision over local authorities, and. of regu- lation and control over individuals and corporations and their property. Such supervision and regulation is usually for purposes of conservation and protection ; but may be extended to include active efforts for the promotion and improvement of the public resources and the general welfare. A further stage is reached when the State establishes and main- tains public works and institutions either for the conservation of re- sources or the active promotion of the public welfare. In the tabular statements which follow are given a further analysis of the various purposes of State control, and a brief indication of the agencies and purposes of control in each State and in the United States Government. The agencies most commonly found are geological sur- veys, fish, game and forestry commissions and State Boards of Health. The scope of State action is most highly developed in respect to fish, game and forestry conservation, in which most of the States exercise investigational, supervisory and regulative powers ; while many also maintain fish hatcheries and some States have game and forest reserves. In regard to water and drainage, most of the States now exercise both investigational and some supervisory powers, and many also have direct State regulation of private activities ; but constructive State works for these purposes are limited to a few States. New York and New Jersey have both State water supply and navigation works; Florida, Minnesota, Louisiana and Texas have State reclamation works; and Utah and Oregon have State water supply, water power and irrigation works. Summary. The general tendency in State action towards natural resources is towards a greater exercise of authority by the State governments, with some steps towards a greater concentration of authority. Most of the States maintain geological surveys, and many of the States have other investigational and scientific agencies. In some States much of this work of scientific investigation is connected with the State Universities. In recent years there was some tendency to concentrate and coordinate the investigation of most or all matters relating to the natural resources of the State under a conservation com- mission. With respect to more active regulation, local authorities still exercise much authority, especially in matters of water supply and drainage ; but they now do so in most of the States, under supervision by some State administrative organ. In addition to supervising local authorities, the States are also exercising direct control over individuals and corporations, and are engaging more actively in constructive enter- prises in these fields, as is exhibited by the number of States maintain- ing fish hatcheries, and game and forestry reserves ; while some States are actively engaged in the improvement of waterways, the distribution of water supply, and irrigation, drainage and reclamation works. The latest tendency is also toward the concentration and centraliza- tion of authority in a smaller number of boards and commissions. This has resulted in a number of different classifications of the powers exer- cised by any one department. Sanitation, rate regulation, agriculture, irrigation, or conservation may, any one of theni, loom up as the most important to a State according to its peculiar conditions. To Ohio, Indiana, and Massachusetts, sanitation has appeared most important; and matters of water supply and drainage are placed under the State Board of Health. With the concentrated populations of New York, New Jersey and Pennsylvania, the equal distribution and conservation of water has seemed important, and special commissions have been created with wide power over these matters; while in New York con- servation as the dominant note is carried a step farther by including all questions of water and natural resources under a single department. In the western State, irrigation and engineering problems have been most important ; hence matters of water supply and drainage are usually centered about an officer whose primary function is in these fields. The conservation of fish, game and forests is also important in these States ; and there is very often a concentration of these three matters under one head, often under the advice and assistance of an investigatory conservation commission. The Department of Agricul- ture has been made a center of concentration in a number of States. States as far apart as Ohio, Georgia, and Washington have concen- trated a large number of authorities relating to conservation and drain- age under this head. 814 EFFICIENCY AND ECONOMY COMMITTEE. PURPOSES OF STATE CONTROL OF NATURAL RESOURCES. I. Scientific Investigation of Natural Resources. 1. Exploration and Examination. a. Geological Formations, Paleontology, Minerals, ores, clays, building stones. b. Fuels, coal, oil, natural gas. c. Water, artesian and surface. d. Soils. e. Natural History, fish, fauna, flora. f. Geography, topography, gauging of streams. g. Meterological Phenomena, weather conditions, climate, etc. 2. Educative Work. a. Publications, bulletins, maps, charts, reports. b. Museums, collection of specimens. c. Lectures. II. Conservation of Natural Resources. 1. Fish. a. Protection of fish habitats, river and lake conservation, prevention of pollution of streams. b. Protection of fish, enforcing fish laws, stocking rivers with fish, construction and maintenance of fish hatcheries. c. Investigation of fish habitats and means of propagation. 2. Game. a. Protection of habitats, forest conservation, game preserves. b. Protection of game and birds, enforcing game laws, breeding and propagating of birds and animals, issuing hunting licenses. c. Investigation of habits of birds and animals, museums, popular edu- cation, bulletins. 3. Forests. a. Maintenance of Forest Reserves, replanting of trees. b. Protection from fires, patrols, etc. c. Protection of timber, enforcing forest laws, etc. d. Investigation of trees and forests, proper forestry methods, timber cutting, replanting, etc. 4. Minerals. a. Investigation and discovery of mineral resources. b. Assay of minerals and ores. c. Enforcement of mining laws, determination of mining claims. 5. Water. a. Protection of head water forests. b. Prevention of pollution of streams. III. Providing Water Supply. 1. Irrigation. a. Organization of Irrigation Districts. b. Construction of irrigation works, canals, ditches, etc. c. Regulation of distribution of water, determining water rights. d. Investigation of irrigation possibilities. 2. Water Power. a. Construction or regulation of dams, reservoirs, etc. b. Regulation of distribution of water, determining water rights. c. Investigation of water power possibilities. d. Conservation of water resources, water shed protection. e. Regulation of water power companies. 3. Water for Public Consumption, a. Conservation of water resources, protection of water sheds. b. Prevention of pollution of streams, inspection of sources. c. Construction and maintenance of water supply plants. d. Regulation of water companies. c. Organization of local districts for water distribution. PUBLIC WORKS, PARKS AND BUILDINGS. IV. Drainage. 1. Sewage Disposal. a. Organization of sewage districts. b. Construction and maintenance of sewage systems. c. Sanitary regulations, prevention of pollution of streams d. Investigation of means of sewage disposal. 2. Land Reclamation. a. Investigations of reclamation possibilities. b. Construction of works for drainage of overflowed lands. 3. Agricultural Drainage. a. Organization of drainage districts b. Construction of means of drainage, canals, ditches, etc. c. Investigations of drainage possibilities, surveys, etc. V. Promoting Navigation. 1. Waterways. a. River and Harbor Improvement. b. Canal construction. c. Deep waterways. d. Prevention of obstructions, regulation of bridges, etc Transportation. a. Inspection and regulation of vessels. b. Regulation of navigation companies. c. Enforcement of navigation laws. 3. Commerce. a. Regulation of water commerce. VI. Prevention of Floods. a. Issuing flood warning, gauging streams. b. Inspection and regulation of dams, reservoirs. c. Protection of water sheds, forest conservation. d. Construction of levees. 815 2. U. 816 EFFICIENCY AND ECONOMY COMMITTEE. •11 STATE AGENCIES OF CONTROL OVER NATURAL RESOURCES States Geological Survey (T) Conservation Commission (2) Fish and Game Commission (3) Forestry- Commission (4) Board of Agriculture (5) State Land Office (6) State Board of Health (7) Public Utilities Commission (8) State Engineer (9) Water Supply Commission (10) Canal, River & Harbor Boards (11) Special Authorities (1-) Maine i • • • • isrc ire isrc isrc isrc X ir isrc isrc isrc isrc i . . . . • ir is isr isr isr is isr isr isr i New Hamoshire. . . Vermont . . . . i • • • • ir isrc . . . . X Massachusetts .... r . . . . ire ire X Connecticut . . . i i i i is isrc • • • • Rhode Island . . ir r • ir ire isrc X New York r is isrc X New Jersey Delaware isrc isrc X X X isr X X X isr isr isrc isrc isrc isrc isrc X Pennsylvania Maryland Virc'inia . i • 1 • 1 i is i i i i i i i • 1 ir • 1 • 1 i • • • • * 1 .* • isr • • • • isr isr r r .... isr ire X i i • ir • 1 ire West Virginia North Carolina. . • • • • is is is is is is r r r X South Carolina X Georgia . Florida src Alabama Mississippi Tennessee . • • • • isr isrc isrc i ir isr • • • • is is isr isr is isr isr isr is X Kentucky Ohio X Indiana ■ • • ■ i isr isrc isrc isr isr ire • ir isrc Illinois r ire X Michigan Wisconsin . . ■ isrc r isrc ire isr • 1 r X Minnesota isrc Iowa . . . ■ 1 i • • 1 • ■ • • ■ • • ■ Missouri Arkansas . . . r Louisiana is isrc isr isr isrc isrc s isrc isrc isrc X isrc isrc isrc isr isrc isrc isrc X • ir ■ • • ■ is isrc isr isr i isr isr isr Texas i re Oklahoma • i • 1 i • 1 • 1 • • • ■ • 1 is is isr r • • • * Kansas isc X Nebraska South Dakota North Dakota isr isr isrc i . . . . is is isr is is is r • • • * Montana • • • • isc Idaho isr isr isr isr ^ Wvominc i i i • • • • r src ic . . . ■ Colorado ■ • • • • ■ • • isrc i , , Utah • • • * Arizona • 1 , , New Mexico isr isr • 1 isr • • • Nevada ire isrc isr • 1 • • ■ * California i i i • 1 • 1 • ■ • • is • ir i • • * * Oregon • • • • • 1 ire X Washington is r • • • ■ 38 10 35 24 19 10 36 13 18 7 M PUBLIC WORKS, PARKS AnD BUILDINGS. NOTES TO TABLES ON PP. 64, (>7, 68-83. 817 i — Investigatory, power of making surveys, examinations, etc., and issuing reports and recommendations. s— Supervisory, power of supervising local public authorities, either by appointment and removal or by issumg orders and directions which must be obeyed; also includes power of co-operating with local public authorities. r— Regulative, power of regulating private action, enforcing laws, issuing of manda- tory rules and orders which may be enforced against private individuals or corporations. c--Constructive, power of expending money for improvements or any constructive work for public benefit, as dredging of rivers, construction of dams and power sites, own- ership and maintenance of forest reserves, game preserves, and fish hatcheries, construction, ownership and operation of waterworks, and canals, etc. NOTES TO TABLE ON P. 64. 1. The work of the Geological Surveys is usually investigatory and embraces minerals, soils, coal, oil, gas, etc. It extends to drainage investigation in New Jersey, North Caro- hna, lennessee, Illinois; to water supply investigations in New Jersey, Pennsylvania, Virginia, North Carolina, South Carolina, Florida, Alabama, Mississippi, Tennessee, Ken- tucky, WisconsiiL Iowa, Missouri, Oklahoma, and Washington; to fish and game in Con- necticut, North Carolina, Alabama, Michigan, Wisconsin, Minnesota, Iowa, North Dakota, and to forests in Connecticut, West Virginia, North Carolina, Florida, Alabama, Mississippi, Tennessee, Michigan, Wisconsin, Minnesota, Iowa, North Dakota, and California. 2. The Conservation Department in New York embraces the functions of fish and game commissions, forestry commissions, water supply commissions, state drainage board and river improvement board. In the other states it is largely an investigatory commission. .... 3- ?" Vermont, Massachusetts, West Virginia, Florida, Alabama, Tennessee, Michigan, Wisconsin, iexas, and Colorado the Fish and Game Commission also exercises supervision over forestry. In New York, Fish and Game control is under the Conservation Depart- ment; and in Ohio, Georgia, Virginia, and North Carolina, it is under the Department of Agriculture which exercises control in addition to the Fish and Game Commission in lennessee and West Virginia. Separate authorities control Fish and Game in Rhode Island, Pennsylvania, North Carolina, South Carolina, Wyoming, Maryland, and Wash- ington; while Virginia and Georgia have Fish Commissions alone. These nine states are marked x. Mississippi and Arkansas alone have no state control of Fish and Game; in Arkansas the Railroad Commission regulates the placing of fishways over dams. 4. The land office controls state forests in Maine, New York, Michigan, Wisconsin, lexas, Montana, Wyoming, Colorado, Utah, New Mexico, and Oregon; the Fish and Game Department m Vermont, Massachusetts, West Virginia, Florida, Alabama, Tennessee, Michi- gan, Wisconsin, Texas and Colorado, has also control of forestry, while in Vermont, Massachusetts, Rhode Island, Pennsylvania, Virginia, West Virginia, North Carolina, South Lar(^ma, Georgia. Tennessee, Kentucky, Ohio, Wisconsin, South Dakota, and Colorado, tne department of Agriculture exercises some control over forestry. 11 ^r ?^* Board or Department of Agriculture has supervision of forestry interests in all of the states listed except Texas, Nevada, Utah, and Washington. It has control of Hah and game m Virginia, West Virginia, Georgia, Tennessee, North Carolina, and Ohio; ot irrigation m North Carolina, Texas, Nevada. Utah; and of reclamation and drainage m ±'ennsylvania, North Carolina, Texas, and Washington. Practically all of the states nave a Board or Department of ^Agriculture, but it is only listed where it has specific authority over some of the matters considered in this report. 6. The land offices have regulative powers, usually on state lands, in connection with conserving natural resources, as follows: Maine, navigation, forests; New York, forests, minerals; Mtchtgan, forests; Wisconsin, water power, forests, minerals; Texas, forests; «(0«raHa irrigation, water power, forests; Wyoming, irrigation, water power, forests, min- erals; Colorado, forests; Utah, irrigation, water supply, water power, minerals; Oregon, reclamation, forests. *■ > . » * ... ^* -A. State Board of Health exists in all of the states except Arizona and New Mexico ai^^ il°V«r to abate nuisances in all cases. Only those states are listed which specifically give their Board power over the pollution of water. Virginia and Texas specifically give ^wer to inspect sewage disposal for general sanitation. In many cases no effective provi- sion IS made for its enforcement. ov^ ^* f-T^*^ includes public service commissions and railroad commissions exercising power r^Z^ utilities and corporation commissions. The power extends to public water supply companies in Massachusetts, Pennsylvania, South Carolina, and Washington, and to water power companies in Arkansas, and to both in the other states listed. T . \. The functions of State Engineers are usually in connection with Water Supply and Yolb A^'- similar officer exercises other functions in other states, as follows: New Arl-l' ^*"a>n?8e, navigation; Florida and Minnesota, drainage; Louisiana, flood prevention, arainage; Texas, drainage; Kansas, drainage; California, drainage. nou"^"^® ^^°^ ^^^ ^*^*^ Drainage Boards the following state bodies exercise investigatory Boar^^ or supervision over drainage: Vermont, Board of Agriculture; New Jersey, State uara of Health, State Geological Survey, Governor; New York, Conservation Department, nln^Il"*^"^®"* o^ Public Works. State Engineer and Surveyor, Governor; Pennsylvania. SouthT^^ ,- Agriculture; North Carolina, Department of Agriculture, Geological Survey; StaV^ r^K°"f^'^K Governor through appointment of officers of local districts; Tennessee, Waf. '-•eological Survey; Illinois, River and Lakes Commission, Geological Survey, State Tarl, c*7*yU Wisconsin, Agricultural College; Louisiana, Board of State Engineers; ♦ »*w, btatc RccUoiation Engmcer, Coromiswoner of Agriculture; Kansas, Engineering 818 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 819 ( I School of State University and Agricultural School^ Board of Irrigation Survey and Ex- periment; Nebraska, State Board of Irrigation, Highways and Drainage; South Dakota State Engineer; California, Department of Engineering, Governor; Oregon, State Land Board, State Engineer; Washington, Department of Agriculture. List includes sutes where head authority is drainage or irrigation board. 10. Includes the Water Storage Commission of Maine; and metropolitan water and sewerage board of Massachusetts. The Conservation Department has absorbed the Water Supply Commission of New York. 11. Includes Massachusetts, Board of Harbor and Land Commissioners; New Jersey Department of Inland Waterways; Pennsylvania, Board of Commissioners of Navigation- Illinois, Rivers and Lakes Commission and Canal Commissioners; California, Examining Commission of Rivers and Harbors. 12. Special authorities not included are: Vermont, State Ornithologist; Massachusetts State Ornithologist; Rhode Island, Commissioner of Dams and Reservoirs, Commissioners of Shell Fisheries, Commissioner of Birds, Metropolitan Park Commissioners; New York Commissioner of State Reserve at Niagara; New Jersey, Commission to consider pollution of streams; Pennsylvania, State Ornithologist; North Carolina, Audobon Society; South Caroltna, Audobon Society; Tennessee, Assayer; Ohio. Flood Relief Commission; Illinois Stote Water Survey; Wisconsin, Board of Control, State Park Board; Kansas, Board of Irrigation Control and Experiment; Oregon, State Biologist. These states are marked "x." . NOTES TO TABLE ON P. 67. 1. Fish includes the protection and propagation of fresh and salt water fish, oysters, crabs and lobsters. 2. Game includes the protection and propagation of all animals and birds. 3. Forests include the protection of trees, the care and management of parks and forest reserves, protection from fires. 4. Minerals include coal, oil, ores, clay, building stones, natural gas, geologic forma- doDS, fossils. 5. Water for Public Use refers to the distribution of water for ordinary domestic purposes, the conservation of supply, the prevention of pollution and the regulation of water supply companies. ^ 6. Water pjower includes the construction of improvements for water power, the regula tion of water rights and distribution and the regulation of water power companies. . .7. Irrigation refers to the organization of irrigation districts, the regulation of water rights and distribution of water. 8. Sewage Disposal includes the inspection and sanitary regulation of sewage systems, and sewage disposal plants. ' 9. Agricultural Drainage refers to drainage by tiling or ditching, the organization of districts for such work and their regulation. 10. Land Reclamation refers to drainage of swamps, or water-logged land, but not to reclamation of and or desert lands by irrigation, which is considered under irrigation. 11. Flood Prevention embraces levee work, dam inspection, etc., but not protection of watersheds, which is considered under forest conservation. 12. Navigation includes river and harbor improvements, dredging, removal of obstruc tions, but not transportation laws or water commerce. STATE AND NATIONAL CONTROL BY STATES AND PURPOSES. State Fish, Game, For- ests and Minerals Water Supply Drainage - 1-H 0) a O o J U Vi 1— 1 o r-t C O ♦ .-1 a B 1—1 1— t a o +-> ■f O w S o A^ O Maine isrc ire isrc isrc iscr iscr iscr isrc isrc isrc isrc isr isr isr ir ire isr isr isrc isrc isrc isrc isr isrc isrc isrc isrc ir • 1 isr ir • 1 isr isr ir isrc isrc isrc iscr • ir isrc isrc isrc isrc isrc i isr isrc i i isr isr i isrc isrc isr isrc isrc isrc ire isr i i • 1 • 1 ir i is isr isr isrc is isr isrc isrc i r i • 1 • • • • is i • 1 New Hampshire. . . V^ermont ■ • • • isr ire is isr isr isr • 1 Massachusetts .... ire Connecticut Rhode Island ir isrc ir isr • ir isrc isrc ir New York New Jersey Delaware isr is isr is ir isrc Pennsylvania Maryland • ir • 1 i • 1 i i i • 1 i • 1 • 1 ir • 1 ir i ir ir • 1 i i isr isr isr • 1 is isr isr is • ir is i is is isr isr ir isr isr isr is • 1 i is isr ir • 1 • • • • • • • • isr isr isr is is s s ire r ir Virginia West Virginia North Carolina. . . . ir ir isr s isr s South Carolina. . . . Georgia ir .... is ir Florida src • • • • src Alabama i • 1 • 1 i Mississippi Tennessee isr isrc isr isr isrc i^rc isrc ire ire ire r isrc isr isrc isrc isrc isrc isrc isrc isrc isrc isrc isrc isrc isr isrc isrc isrc isrc isr isrc isr isr isr isrc isr • ir ir • ir .... is • • • a i Kentucky 1 Ohio isr • ir Indiana Illinois Michigan • ir • * ■ • i isr isr • • • • • 1 ire ire Wisconsin • ir .... ir isrc Minnesota Iowa i Missouri • • • • Arkansas ir Louisiana isrc isr isrc isr isrc isr isr isr isr isr isr isrc isr isr isrc isrc isr isr isr ire isc is i isr isrc isrc re isrc ic isr isrc isrc isrc isrc isrc Texas i isr i isr isr isr i isr isr isr isrc isr is isr Oklahoma • 1 i is i i i ir i • 1 i ir isr isr isr isr isr isr isr isr isr isrc isr r isr isr isr • ir isr isr isr isrc Kansas is isr isr is isr isr Nebraska South Dakota North Dakota.... i • • • • Montana isr is is is Idaho Wyoming • • • • Colorado . . Utah Arizona New Mexico Nevada isr Isr ir isrc isr isr isr • ir isrc • 1 isrc isr • ir isr • 1 • • • • California .... Oregon ire isrc isr i • ir i • • • • is is isrc • 1 • • • • Washington is • 1 • • • • . Total 47 44 42 41 45 35 18 27 16 16 11 8 United States ^^vemment .... isrc isrc isrc isrc isr isr isrc • 1 ic ire ic 820 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 821 R CO o 0^ Pk Q < >— t O o < W o »; o pc{ o o :?: o o w < » d •C o ca IS* a w o CO • 1-1 s s 6 M O 6 g o O t C/2CO 0)00 tA (A !S CA .a C/3 a ^ OS rt III- o o Wi CO 5 asm C/3C/3O S S = S C c Vi 2 S .-T* cu CA O t-i o CA o CA I .a CO 00 l-H c/3 _ v- <— ' • «•« CO lU w «o 6 i2-a i1 O O CO 1—1 05 d o • »1 CO CO e e o U li •«i a a> a 13 d °0 w oo'C r- to O X ti o CO ti d o •«i CO CO O 2^ o d <0 to'^W rt CO d CO s P goo o •55 CO CO ti o ti CO OS fli CD CO ti •-> o'^ §8^ 43 d„ '^ CO 00 C?5 C CO ^ O ^_, d a>VM o g-n o vh rtffi WOT ■si coti^UHH^M .con -c^ -H 'rt on CD '.1 , -ii ^ -.1 d < c d 03 >» ^ TJ ^ ^ • CO n) ^ ««-( •»i HHTJ .s d »v4 1 nn 1 2 'Ti d U3 4-> etf c; 2 1) 0) 4^> s •.1 ^d "^ 4.' i^-'^ +J rt TJ ti 0) -♦-> tJ 2 rt ^ t ti . d ^ bA >>, rt (i> d -M S^ iS ^ V3 ti (1> (D ^; -^ -*-> I1 <4-l rt (U (I) d E 03 §0 ■M 0) x: d (1) -*-> d' lowi abli 4-> CO Vt-I OJ **-! -4^ C) ctf -o^ 0) Oj ^TJ H (U ,d CA • ti CO \ ' ■ w 822 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 823 IN- CO w tn O 0^ Q < CO O w o < CO W O C^ o CO < o ►J o 8 i • d •5: o ;2: ^ (xo C •r-i Q c o t- c ^J2 o ^ •,-4 (A CO '^ (xo T3 G D O u 1 u Publi Use -.§ .^ u> .^ (A ..H .S3 t/3 w o 6 O C/3 J I CO I c/3 e E o U >3 to CO •V4 W 05 3 CO W3 O 03 0) si 300 c o •55 73 e 6 a c o ■4-» > o 73 c o 4^ Oi 73 ^ V|_| C oJ o o i2 5 »-i 73 »H •»^ 73 52 w 52 73 52 w o no 73 V4 w u CO 7} O li 73 rt \-k O oi co^ ^"3 •**> O rt ^ 12 y C o 73 73 • 1-4 e 6 o U "a a CO +J 05 Oj »— t 73 73 73 73 .13- y CO 6 o U 73 y '^ Oi d - y o o •rH TJ 73 o ^ n 73 ;-> 03 C Vh y 00 1-H O y o y ft. C y a. CO CO t-) 73 ^ y 73 00 y 03 00 y "^ ooio o C^SS •rH S O con y 73 ^a 2 01 73 y t-i 73 O Oico Ui 73 o o 05 c o 73 »Ofr:.52 t-H O g III 3 OS y Qi to QS& §^ "to to .52 ^ 1-2 ^e ao au 03 ^ »-H y 05 ■►^ c 03 o 05 a a 03 ^^ O, 73; y cr to 73 3 ^CO CO 1-H 05 o coU 03 a oJ U ti y > ••-I Pi o • I-< o 73 CO «> .2 »y UjTDCO ^ 03 O y ou: y 73 CO 1-H OJ .2 .53 y to 73 y ui o Ui 03 O ^ 03 O -♦-> •a CO 73 a 1-H y r-H G05 y o o 'O 7J •h-S o EWs* IH, • ' : i 824 EPFICIENCV AKD ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 825 CO O o 2: o < CO o p< o CO W .J H < o o p< H O U w i a 1 Navi- gation u * i < 1 Flood Pre- vention Land Recla- mation Agri- cultural Drain- age Sewage Dis- posal i .s .53 1 Irri- gation Water Power ■ Ih—^ 'r^ Water for Pubhc Use Ih • Wi'« : .^ .00 Fish, Game, Forests and Minerals Min- erals ••H • V4 •»« • r^ .V4 • »< O .S3 •iH •»^ s a O Ih • • tH •»H Ih •IH • »H Ih ••I W •tH to "* a CO State Department of Health, 1910. 08741 . oc X 'J X c > cti »C e o 8 w 1: 1 c/: C c c £ 1 c/: 1 c a PC ! c/: • Virginia State Board of Health. 1871 Department of Agriculture and Immigration, 1887, (1876) • Commission of Fisheries, 1908, ri8991 i t CO 1 8 a>oc co ■ i rH c J3c/: O §>« CO • •H c CoC |i s- Department of Agriculture, 1911, a«9i) ** S 3 ccoo O "" ^ I" ,^C0(JQ<:« .. a> Si *■* fl rt SW3 go O few 826 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 827 SHi w CO O Q CO H <: z o o :?: o u w < CO a OJ 1^ t-4 o >> :z, ex w a 5 >^ ^ CO rt ^ W U P^ U> O CO g t3 CO (U Wi CO o .52 •d , o bO-t-> J? C?^ oa •6-S bc t4 tH u o •|-§ (0 o 4} O CO I S B CO CO .23 CO o (O CO co.^ CO 00 CO 1^ CO C a 6 o O CO »o O gooffi :3 «^Ooco u (O ^5 CO -t-> bo Q W bgS ••-• CO CO 52 * ..OS '2 ^00 0,1-1 g ^ a e § -~ CO Ph +j •*j '4-3 CO 8 a .2 CO CO ••H a a o .9 O tH .is .a CO 00 1 O 00^ -'?o CO .a X o 1-1 ^§ rt ..H fi CO "ss ^^ S O COPQ S •H a o a 00-^ CO OS — t O z w o <: >^ n CO W O ^ O CO W Pi •J < < o o o o CO a Q a a CO ii -♦-> •C o X! (A «^ o aj < SO ™ Si ^ ctJ o a. c-3 .ta 73 +-> t/J 0) o 6 O PL4 I I CO "^CO 2 Co g^ • t^ 'iH Ih .a o i-l .a .59 Wl ••H .§ i I B SO ■l&d Ih -t^ O > PQ a o .59 o .U .§ GO .59 »e Ih .a .H'^ .§- o ea -M -tJ 05 COCO osgScc 2i N-SSoO G 00^^ o _r a>i-H.53 ^^ ;^ coP^Oco to ;3 . d £0 -'Ti '^ 3 "^ CA o Ih r/j O l-i rij O Vh CA to CO t/3 ••-• O Ih tn Hi '^ I 00 x: +-> ^ o Wfe-S.J3 o o Ot) o <4 B 6 o CO s o «H -O Ih Qpq O - O 0) .52 CO W<4H fH to eg CO 5j rt CO Ih 0) o c •fH C w ■♦J CO Ih CO Ih CO Ih CO O «H Ih •«-• •13 o Ih CO Ih CO 73 Ih O Ih o s > o «o CO •1H s g O o Ih CO o I flTf^ «H Ih o •»H Ih o Ih C o >.h to eg eg to Ih to Ih to CO .rt Ih CO -M +J 05 coco o Ih O :pq 0) CO 00 QO +j (u rt ctf oj ^r +-> -(J +j O CO CO CO Ih (O Ih CO 00 Ih C« O «o to §co cij {^ 830 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 831 5{ i*' 03 C Q Navi- gation • •M f— ■ 'S • .2 ! c/5 .52 .52 W 2 .^ _w to • Ih • CO . 'iH ^Q a • C/2 u 'a a it 04 •f* • < • a : .ss : \m RCES BY AGE ^ "* .S : •»^ w .12 •V4 "< cfl 13 ■ •iH O W 73 C o ••^ • pn ••^ "* U) .iH . < en .1-1 tn o •tH "-• to "H O e 01 o CA • •^< 1: ll .52 -J o ^ : .53 . •V4 •i^ 1 o w < C/2 1 03 73 • c • oJ • ^ : ^ : s • CO ; c ; o . •tH +-> 05 • 6fi • PQ c 2 • C/2 b« • 'S< : lis i •• 3 CO o 1 0) . ■H : 1; S • o : cn -^^ CO 1— 1 +-> o c o 1 e e o U ft • »— 1 o • •tl ••^ o 0^ o • • »■< • S : S : ^ ; a • o • l\ (U . cfl . C . O • ^^ ^O o3 '-I CO 1 b« . K : § ■ °Q 03 C O oJ 111 -SCO 8 : Is SI *^ •§1 CO ; 1 ■ c . 03 ■ § ; S : CJ 1 o : 13 • a : •J : iS : CO • t ': . o|gg I"' Co 1 ! 1-H • ll <1> c ••-) C W 4-> CO t CO o c CIS i o to to ••-' W.Jh W ••-" to.t5 to ••-' to.*3 to to to e s o U c CO Ci 01 OS 00 o ■*-> to • •-I 01 CO w 2 01 c a o •t-i o c 01 05 to t-i a> o to to O u S rt 5 u 01 -<« o «3pq (^ 2» 03 .y .3 «:> Ih to u to .§ to ""^ o c O O •a u a o pq to •tH -2 3.^ 3 03 O PQ »-< 03 T3 •h rt) O 03 05 O OS u O Ih to Ih to C 0) Ih OS to CO S - o 5r. U C5 o 05 1-H 03 to Ih , o CO CO • th C OS O S 03 O 0) ^.i:-.i2 coOO 03 CO^ 53 S •** 05 OCO :^ e o o ocj 1-H •-j o3 o O (u m O) .tj 4-> '-I 05 oJ .1^ .!-> COCO Oi y CO 1-H OS o to to i—t to ► '^ to bs '-' ..° c^ •in 4J CO c3 CO y 3 w.i: to .53 to.i3 y Ih to s o o n3 c OS 1-3 a o •IH 03 bO • •H Ih Sh to to to y Ih to c y 73 Ih 03 y e 03 O o OS Ih 03 O PQ y taco OS <+H cx) o ypq c ^< .2§ CO o3 Ih r; y rrt a> « bfi CO C 'iH w y y 4-> +J OS 03 o OS o OS OS y 73 u 03 O PQ y 03 COCOCO CO Hi Ml't 832 EFFICIENCY AND ECONOMY COMMITTEE. CO en O Oh Cii Oh Q <: W o w o < pq w (^ O 03 H Z O O H ;?: o o » PUBLIC WORKS, PARKS AND BUILDINGS. 833 ^ O txo 'O , g '2 rt O a "a a 03 It 73 a w ■*-> Si w ^ S3 aT.S O CO bfl v^ fe.i: ^^£ CO' 1^ (U Ui di u O 6 o OS 00 O H M (A r^03 n W A .59 OS VM 00 o a; C fli C I' O3 03 CO ^ C/3 SI* •■^ HH «+-( .W o 03 03CJ i^ 8g-^ b« c 6 52 .52 CO u CO CO It CO "3, n 03 00 g "J ■♦J <^ VM O O pq« 0) lu 3 03 '^^ iliS •§03 C/3 00 CO ii CO u in CO y CO 0) l-l o g o C CO VM V4 (X) o 8 D 00 _ 4.J fh •«-> >^ 0^ 4j .5 to •".52 .^ CO o CO CO 0) 0) rt s rtgo 03 0303Q CO s B o §^ CO ^ 5 25 ,■3*^03 CO s s o u 1— t "^ ► o 05 o 00 s o O c: o •fH > oS to C ID o u CO to CO CO w.a o CO' OS to ^^ C O «^^' "i <:« CO rt iS 03 C O 0) to 03t3 J2 a o ■t-t to .52 c §i| OS Of™ - e s O c c a; "» ^ cu to to OS to CO CO CO CO CO CO •g03(3HplH o •»» Co ctJ eo3 CD s 2o bog CO Ql '^ CO It (O o Ih to y t-l CO o to to 8 c O CM) s 6 o O CO It O 4-> ••-" i03{iH tt •c biO < OS is--* 1— I to ~ -^ s It 'O o &0-C G ^ u, W 3*^ rt 3 rt 03W CO o It CO e O CO 00 ooo 00 1-H Is •S'H +-> +j 01 c3 03Cfc s c to 00 CO St CD 88 f^ '•-• CO ■ It to bs22 It o OS 00 g o oi-r to OS.S cj.to s 03 pq T3 oJ O PQ.5 to 00 •§22 S o O to It O ^ XI bfl It SW C 0) s c« a It o It o QO ^j 834 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 835 I 'i k w W o Pi cm O < CO w I— ( O w o <: >^ pq CO W O oj; o CO W <: < o o (4 H 2: o o i CO C • .-» s Q c o .<=H bO 'S • 2 "a a CO l-l a • • J^ »^ c i> Ag culti Dra 05 tu CS rn C3 CO *^ •C-2 I— ( oJ biO •'^•'-•.53 u u (V to 0) i-i O E O CO O i-H CO 05 0i '-• 1— I 1-H O C to.y •rj to CO o t^ S s e . *^ . I 00 o u CO c "* ^ ^ SooPQ »o o u £Jh CO 3 «-. 10 CO CO s ^.8 ^^ >*^ i/7 s^ -gcoOco o o tL.'ii a U cd O c« ^cocoCQ ^fe C w. rt - a> eti o C 6 rt CTJ j^ WPQJhJ 52 "H 0) 01 -1 -^-' "^— T— c^ ct c^ c3 CO 73 l-l OS o (U CO t-i o c o to CO 't-l e e o CO W CO CO CO CO Q CJ CO CO Ui +J COCO to l-< o 0;r3 S o Ih ?*• rjo I'COcj^g ^ 52 a)X3 If-; CO O CO CO IH o.i2 12 .8 O U.52 o CO o CO 8 ^ to t-i CO s^C 03 ■*.* ^^ .-H 8 '-H 03 ^ o3 d a 0) 03 o CD C to > 5 a; tjCO o l-l l-l »-l »-l f ) ,-4 s -^ CO C >,.T-I ^8^Sco- biO O 0) CO t, Vi o Wi CO >^ > CO §'^^ CO O J3 (U CO "^ crt CO 'TJ «^-l vi_( ■S» O 5 -( r5 C3 O l-l Cti '?' n! •g^PQoQ^OPQpq .00 OS 3 j3 4-> o3 o3 CO ^ per cent of the cost of the work involved and is subject to audit by the departmental officials for whom the service was rendered. At present, therefore, the compensation allowed the architect is $5,000 per year,' plus a commission of 2>^ per cent of the cost of construction. Powers and Duties. The powers and duties of the State Architect are set forth very briefly in the laws. On request of any board, commission or office of the State government, it is his duty to prepare plans, specifications and models for the erection of proposed public buildings and improvements. This mcludes additions, alterations and repairs to public buildings al- ready erected, and the construction and perfection of all systems of sewage, drainage and plumbing, as well as improvements of all grounds upon which buildings are erected. The Governor's approval must be obtained for all such drawings and plans. In addition to preparing plans and specifications the State Archi- tect IS required to supervise construction. He must inspect materials used in construction, and if such are not according to the standard called for under the specifications, he must report the fact to the office or board letting the contract. The Architect has full power to define the true meaning and intent of any of the drawings, plans and specifica- tions and, if his interpretation is not observed, may stop the process of construction and order the removal of defective material. Admimstration. The office of the State Architect is located in Chicago. He em- ploys his own assistants and pays them from the 2>^ per cent com- mission allowed him. His office staif is therefore his own staff; but all plans, specifications, and drawings made for the State are the prop- erty of the State and not of the Architect. He is not required to submit reports to any State official, but his expense account for the construc- tion of any particular building is subject to audit by the board or the institution interested. 101^^^^*^^"^^ ^^ ^" estimate of receipts and expenditures for the year ^^H, prepared by the State Architect and based on receipts and dis- bursements from January 1, to June 1, 1914: Receipts 1. Appropriations for possible buildings, $2,050,000, 2J^% of which is $51,250.00 2. Salary of Architect 5,000.00 ToUl receipts ', $56,350.00 H 842 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 843 mm^ Disbursements 1. Office force (per month) $ 2,520.00 2. Traveling expenses (per month) 30.00 3. Office materials (per month) 250.00 4. Rent, phone, light, postage, water, etc ' 350.00 Total per month $ 3,150.00 Total per year 37,812.00 Deficit from 1913 $ 3,852.54 Total disbursements 41,664.54 Excess of receipts over disbursements $14,685.46 It should be observed that no allowance is made in the above esti- mate for failure to use the total amount appropriated, or for changes decided on after plans have been drawn by the Architect. The latter always necessitates a redrawing of the plans which involves additional expense for the architect's office. Under the present system the Archi- tect is not called upon to prepare preliminary sketches of proposed buildings. The institution desiring a structure makes a rough estimate of the amount it desires to spend (consultation with the Architect is sometimes had) and asks the General Assembly for that sum. In the case of new institutions, appropriations for various purposes are usually lumped, which leaves the amount to be spent for construction of a particular building somewhat flexible. The Architect can then proceed to prepare plans, and bids can be received and contract let on the plans. But in the case of appropriations for an old institution, the sum appropriated represents the maximum expenditure for the construction of each building. It sometimes happens that the lowest bids received on the Architect's plans exceed this maximum, which necessitates a re- drawing of plans on a less elaborate scale, and involves still more ex- pense for the Architect's office. Hence the figures given in the estimate should not be taken as representing with accuracy an estimated net profit for the year. It has been estimated that the net profits of the Architect will average $7,000 or $8,000 per year. On the basis of $2,050,000 of construction per year, it would undoubtedly be more than this. At any rate, it seems clear that the profits accruing to the Architect are larger than the $5,000 salary attached to the office and all above $5,000 must be obtained from the 2j/2 per cent commission allowed for expenses of the office for drawing plans and supervision. Under the present arrangements, the State Architect neither pre- pares preliminary plans nor does he inspect the work of the construc- tion. It is contended that the two and one-half per cent allowed the Architect is not sufficient to warrant pay for more than drawing of tlie plans. Whatever inspection there is, thus devolves upon the officials of the institution interested. According to the schedule of the American Institute of Architects Architects are entitled for professional services to a minimum charge of six per cent, based on the total cost of the work complete. Professional services include conferences, preparation of preliminary studies, work- ing drawings, specifications, large scale and full size detailed drawings and general directions and supervision of work. The proportionate charge for particular parts of their work is as follows : Preliminary studies 2 General drawings 2 Specifications 1 , Scale and full size details 2 General Supervision 3 Thus .3 of 6 per cent or 1.8 per cent is allowable for supervision of construction, and .2 of 6 per cent or 1.2 per cent for preliminary plans. In other words 3 per cent or half the cost of the services of an Archi- tect, relates to drawing preliminary plans and supervising construction, neither of which functions are performed by the State Architect of Illinois. The remaining 3 per cent represents the proportion that would be allowed by the American Institute of Architects for work similar to that performed by the State Architect. Were the office of State Architect abolished, the State could hardly hope to obtain the services of the best of Architects for much less than the commission authorized by the institute. But under a system of competitive bidding for each individual piece of construction, as would be necessary without a State Architect, the drawing of preliminary plans could not be dispensed with. Therefore, a fair charge to the State for architectural services would be about 4.3 per cent of the total cost of construction. This probably represents a minimum expense that might be expected under a system of competitive bidding for services similar to those now performed by the State Architect. Other factors, such as payment for preliminary plans prepared by unsuccessful com- petitors would probably swell the total expense to at least 5 per cent. In New York, where architectural services are obtained by competition the schedule of charges of the American Institute of Architects (6%) is allowed. ^ ^ ^ If the estimated total appropriation of $2,050,000 be taken as representing the total cost of building construction for a year it will be seen that the State is now obtaining the services of the State Architect lor about 2.7 per cent of the cost of building construction." 3. Public Architect in the United States and Other States. There is a Supervising Architect in the United States Department 01 the Treasury. But only a few of the more important States have created a special office of State Architect. Of thirty-seven States, in- cluding all those of importance,38 only four (exclusive of Illinois) have provided such an office, while one other has an official whose primary auties relate to architectural work. These States are New York Iowa :^;[ebraska, Kansas, and California. 'llda^ "°"""*^^°" °" ^2,050,000 ^5,250 5,000 I>eIataS'*'MSlir«'3^ vi^*^' r^^ 1,"°^ examined : Mississippi, Tennessee, West vfrllnia^ ware, Maryland, Vermont, Idaho. Arizona, Nevada, North Dakota, and South ciroHna'. hi "*-..: 844 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 845 ■ti. United States Supervising Architect. The Supervising Architect in the United States Department of the Treasury has charge of the following matters, subject to the direction and approval of the Secretary of the Treasury : The selection of sites for public buildings ; securing necessary State jurisdiction ; the prepara- tion of estimates, drawings, etc., for approval by the cabinet officers, as required by law, preliminary to the erection of court houses, custom houses, post offices, marine hospitals, etc., securing competitive designs and completing arrangements under the Treasury Act; arranging all details incident to the Government entering into contracts for con- struction, etc. He is also charged with the duty of keeping in repair all buildings under the control of the Treasury Department ; keeping in a proper state of efficiency and capacity all heating apparatus and hoisting systems in those buildings, supplying, to public buildings in the control of the Treasury Departments outside the District of Columbia, furniture and fixtures and repairing and replacing the same. He also controls the supply of vaults, safes, etc., the assistant custodian and janitor forces, and the supply of fuel, lights and water for said buildings. Nezv York. By Act of 1914 the office of State Architect has been re-organized as the Department of Architecture. The State Architect is head of the department, and is appointed by the Governor, with the advice and consent of the Senate for a term of three years, at an annual salary of $10,000. He may appoint three deputies, a secretary, an assistant secretary, two confidential assistants, and such architectural and engi- neering experts, draftsmen and other employes as may be necessary. The State Architect shall prepare drawings and specifications and supervise the construction of all new buildings erected at the expense of the State, — with certain exceptions, for State buildings in Albany, the New York State Building at the Panama-Pacific Exposition, and buildings under the control of the armory commission. He also pre- pares drawings and specifications for additions, alterations and improve- ments, except when the work is done by an institution or its inmates. He prepares forms of contracts to be approved by the Attorney-Gen- eral ; contracts must be approved by the State Comptroller ; and bills for payment must be certified by the State Architect. Whenever plans and specifications for State buildings are prepared by architects other than the State Architect, they must be approved by the State Architect. An Act of 1910 authorizes the State Architect with the approval of the Governor, to obtain plans, etc., for public buildings by competi- tion. Not less than five competitors shall be invited by the Governor; and awards are to be made by a board consisting of the State Archi- tect, one appointed by the Governor as a representative of the appointed board or commission under whose jurisdiction the building is to be erected, and one architect selected by the State Architect from a list of six or more chosen by the invited competitors. In 1900, there were 27 persons in the State Architect's office, and the expenses of the office were $55,657. In 1912, the office force had increased to 73 and the expense to $131,225. In July, 1914, there were 91 persons in the department, and the expenses for the preceding three years averaged $137,500. The estimated cost of buildings for which plans were prepared during these three years, was $7,195,593. Thus the expense of the State Architect's office were somewhat less than six per cent of the estimated cost of buildings. EMPLOYES, SALARIES AND OTHER EXPENSES OF THE OFFICE, 1900-1912. Year 1900. 1901. 1902. 1903. 1904. 1905. 1906. 1907. 1908., 1909., 1910. , 1911.. 1912.. Number of Employees 37 37 40 38 42 41 51 51 51 62 66 63 73 NEW YORK STATE architect's Expenses Other Than Total Salaries Expenses $11,822.41 $ 55,657.53 9,199.32 53,540.07 6,970.40 52,348.46 6,881.09 51,804.07 8,533.58 56,549.57 6,284.67 56,462.60 6,628.72 59,265.07 7,268.34 66,734.48 15,091.88 89,933.15 13,134.52 99,933.94 19,345.40 112,878.12 21,282.04 125,653.87 24,082.11 131,225.99 Salaries $ 43,835.12 44,340.75 45,378.06 44,992.98 48,015.99 50,177.93 52,636.35 59,466.14 . 74,841.27 86,799.42 93,532.72 104,371.83 107,143.88 California. In California, all new construction or repair of State buildings in- volving more than $1,000 is under the control of the Department of Engineering with a State engineer in charge. Within this department there is established the office of State Architect. The Architect is appointed by the Governor and receives a salary of $4,800 per year. He prepares plans, specifications and estimates of all proposed struc- tures and submits them for approval to an advisory board. This board consists of the Governor, State Engineer, General Superintendent of Mate Hospitals, Chairman of the Board of Harbor Commissioners and three other persons appointed by the Governor and serving at his pleasure. The Architect not only draws the plans, etc., but also super- vises construction either personally or through a deputy. After com- pletion he inspects the structure and certifies its condition to the State i^ngineer. The Engineering Department has no jurisdiction over improve- ments on the water front at San Francisco. All such are under the supervision of the State Harbor Commissioners. Following is, a summary table of expenditures of the State Archi- troH . ^^^^^^"^^' compiled from the annual reports of the State Comp- ^tate Architect- Appropriation $4,000 A .^disbursements 4,000 •Architectural Design- Appropriation Disbursements Architectural Draughtsmen- Appropriation Disbursements . . ". * Tnlol appropriations $4,000 otai disbursements 4,000 1909 $4,000 4,224 400 $4,000 $4,627 1910 $4,800 4,800 2,400 2,400 6,000 5,627 $13,200 $13,027 1911 $4,800 4,133 2,400 2,400 6,000 6,000 $13,200 $12,533 1912 $4,800 520 2,400 2,400 6,000 5,973 $13,200 8,893 846 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 847 Iowa. In Iowa, control over the construction of State buildings costing more than $1,000 is vested in a Board of Control of State Institutions, consisting of three members appointed by the Governor for six years. The Board is authorized to employ an architect to prepare plans, etc., and perform the usual functions, including supervision of construction. His salary is fixed by the Board. In cases of sufficient magnitude the Board may obtain the services of a consulting architect or procure plans from some other architect. In 1912, $8,000 was appropriated for the Architect's office, $6,000 of which was the salary of the Architect. Kansas. Kansas provided by statute ni 1905 for a State Architect, to be appointed by the Governor for a term of two years. His salary is fixed at $2,500 per year with necessary traveling expenses, based on the rates of three cents per mile. He is required to prepare drawings, plans, specifications, estimates and models for the erection and com- pletion of all buildings constructed at the expense of the State. He must personally supervise construction, inspect all materials and per- form other customary services of an Architect. His office is under the Board of Public Works, which consists of three appointees of the Gov- ernor. The following table shows expenses of the Architect's office for 1913 and appropriations for 1914 and 1915: , ,. 1913 1914 1915 State Architect $2,500 $2,500 $2,500 Draftsman 1^800 Draftsman l',200 1,266 VioO Stenographer 900 900 900 Extra draftsman and materials 601 700 700 Traveling and incidental expenses 871 900 900 Total $7,872 $6,200 $6,200 Nebraska. « A statute of 1911 made the Governor of the State, inspector and supervisor of the construction and repair of State buildings. The Gov- ernor is authorized to appoint a deputy inspector at a salary of $2,000 who serves practically as a State Architect. Control over the erection of new buildings, and repairs and improvements is vested in a Board of Control, consisting of three members appointed by the Governor. All improvements involving an expenditure of more than $1,000 must be constructed under estimates furnished by the Deputy Inspector and Supervisor, who is also charged with the duty of personal inspection and supervision of the construction. The deputy thus furnishes esti- mates and supervises construction and in these respects performs the same service as the State Architect in other States. Summary. Apparently the only States of the Union that employ a State Archi- tect are New York, Illinois, California, Kansas and Iowa, while Ne- 89 In New Jersey, the Commissioner of Charities and Corrections is authorized by la* to appoint, subject to approval by the Governor, an assistant who shall be an Architect. braska has an official called the deputy inspector who performs sim- ilar services.^® In all these States the Architect is appointed by th^ Governor, except in Iowa where he is chosen by the Board of Control of Public Institutions. The salary of the Architect ranges from $10,000 per year in New York to $2,500 in Kansas and $2,000 for the Deputy Inspector in Nebraska. In all cases (omitting Illinois) the compensa- tion of the Architect is fixed and his office staff provided for by law. In New York, special provision is made for obtaining outside archi- tectural services when the Architect and the Governor deem it desirable. 4. State Art Commission. In 1909 there was created a State Art Commission, consisting of two painters, two sculptors, two architects and two other persons not engaged in any of the above pursuits. The Governor serves as ex officio member and appoints, with the consent of the Senate, the other members, who serve for four-year terms. The commission acts in an advisory capacity only. It approves or disapproves of the artistic qual- ities of all plans, specifications and designs of works of art or public buildings that may be submitted to it on the request of the Governor. It possesses no final authority to accept or reject such plans but merely to pass upon their artistic merits. Moreover, there is no legal necessity for submitting designs of proposed structures to the commission at all. It seems that little use has been made of the Art Commission up to the present time. The General Assembly of 1913, however, appropriated to the Commission the sums of $10,000 and $1,000 to be used in the preparation of plans for Lincoln and Douglas Monuments. B. CONTROL OF PUBLIC BUILDINGS. 1 Public Buildings in Springfield. The public buildings in Springfield consist of the Capitol, Execu- Uve Mansion, Arsenal, Supreme Court Building, and Power House. The Lincoln Home and Lincoln Monument, in charge of special boards, are discussed as monuments and memorials. Control over public buildings is vested in various authorities. The J^ecretary of State has charge of the maintenance and up-keep of all nouses, lots, grounds and appurtenances" of buildings that are not specifically given over to some other authority by law. As a matter ?i fact, control over the maintenance of most of the buildings is vested m some one else. The Adjutant-General has charge of the care of the arsenal; the Supreme Court controls the maintenance of the supreme court buildmg; and the Governor has control of the maintenance of tne executive mansion. This leaves only the state house and power nouse under the jurisdiction of the Secretary of State. Specifically the Secretary of State is responsible: :,nA }c ^°^ *^^ proper up-keep of the Capitol, surrounding grounds ana the power house. SuT^rL ^n ^"""S^^t"?.^ ^^^^ ^"^ ^'^^^ ^^ ^^« State House, Arsenal and ^«preme Court Buildmg. 848 EFFICIENCY AND ECONOMY COMMITTEE. PUBLIC WORKS, PARKS AND BUILDINGS. 849 3. For care and replacement of furniture in the halls, corridors, basement, Senate and House Chambers and Committee Rooms. (Each office has charge of its own furniture.) 4. For cleaning service in the State House and Power House (with exceptions noted later). 5. For preservation of the Capitol and guarding it against fire (in connection with the Treasurer). To perform these functions, the Secretary of State appoints a Superintendent of Public Buildings and Grounds at a salary of $2,500 per year. The Superintendent, subject to the approval of the Secretary, appoints an assistant and the necessary corps of engineers, firemen, car- penters, janitors and other employees. He takes personal charge of movable furniture under the jurisdiction of the Secretary of State. He also inspects coal delivered under contract to see that it is of the proper grade and properly weighed. Following is a list of employees and salaries authorized by appro- priation of 1913 under the office of the Secretary of State: Superintendent of buildings and grounds $ 2,500 Assistant superintendent of buildings and grounds 1,800 Carpenters (2 at $1,000 each) 2,000 Policemen (6 at $800 each) 4.800 Elevator (6 at $800 each) 3,600 Janitors (11 at $800 each) 8,^ Flagman ^ Engineer l»ow Assistant engineers (2 at $1,320 each) 2,640 Firemen (9 at $900 each) 8,100 Weigher }.000 Electrician J'^OO Assistant electrician (3 at $1,200 each) 3,600 Helper 900 Total $43,940 In 1913, a total of $31,500 was appropriated for general im- provements, repairs and maintenance of the Capitol, in addition to appropriations for salaries. The assistant superintendent of public buildings and grounds acts practically as head janitor. The eleven janitors under him perform cleaning services only for the halls and lavatories of the State House and for the power house. The State Treasurer employs nine watchmen at a salary of $900 each. They are independent of control by the Secretary of State. Each office in the Capitol buildings employs its own janitor or arranges for its own janitor service. There are at least fourteen such offices paying an aggregate of $9,540 a year for janitors, the individual salaries ranging from $180 to $900. This sum, together with the ex- penditures under the Secretary of State's offices, amounts to more than $20,000 per year spent for janitor's salaries for the Capitol alone- Moreover, such does not represent the total amount so spent. Several offices in the State House are not here included for the reason that their expenses for cleaning services are lumped with other office ex- penses and thus cannot be ascertained. The Adjutant-General has general control of the maintenance of the State Arsenal. An annual appropriation of $3,220 is made to his office for this purpose. The maintenance service of the Supreme Court Building is con- trolled by the members of the State Supreme Court, with the exception of the janitor in the Attorney-Generars office. There is a head janitor and five regular janitors (including the office of the Attorney-General) with individual salaries ranging from $800 to $1,000 per annum. $5,700 is appropriated annually for an engineer, matron, two elevator conductors and two watchmen. For the care and maintenance of the Executive Mansion and grounds an appropriation of $15,000 a year was made in 1913; and an additional appropriation of $16,000 for repairs and improvements. Following is a summary of appropriations for the maintenance of public buildings in Springfield for the biennium 1913-1915:*® Total Capitol building— 1913-4 1914-5 Biennium Salaries for janitors, watchmen, carpenters, engineers, etc $61,580 $61,580 $123,160 General maintenance and improvements... 31,200 1,000 32,200 Arsenal building 2,500 2,500 5,000 Executive mansion 31,000 15,000 46,000 Supreme Court building 11,020 11,020 22,040 Heating and lighting 18,000 13,000 31,000 Total $155,300 $104,100 $259,400 2. State Offices in Chicago, Thirty State offices, boards and commissions have offices in the city of Chicago. This does not include institutions, such as the Chi- cago State Hospital for the Insane, the Charitable Eye and Ear In- firmary, the Industrial Home for the Blind, or the Colleges of Medicine and Dentistry and the School of Pharmacy of the University of Illinois, nor the Lincoln or West Park Boards. These thirty offices are in some cases branch offices of departments which have their main head- quarters at Springfield ; in other cases they are the main offices of the State offices, boards or commissions. Most of these offices are scattered in various places in the central business district, in or near the so-called loop district, from 180 North Dearborn Street to 738 South Wabash Avenue, which are more than a mile from each other. In a few casts several offices are in the same building: the State Treasurer, the banking department of the Auditor of Public Accounts and the Inheritance Tax office of the Attorney- General are in the Otis Building, at 10 South La Salle Street ; the Fire Marshal, the Rivers and Lakes Commission, the Chief Factory In- spector and the Civil Service Commission are in the Transportation Building at 608 South Dearborn Street. But in many cases each office IS in a separate building; and the offices which are grouped together ^re not those which have the closest relations to each other. :«--/°'^^^* « CCO(N05(M005COOOCOtOO(N(N -^ j^"l>. "^,"^^• 0_^t^ to CO^OO (N > >,-^ ^ PQ pq m _ o o _, W3 O) (/3 ^Ctf .i4 Ji*:^ ^t^iOtOO ocor^r^oo 1-H t>. »— I »— I »— I c o 0) w o O O 03 u \^^ e o rtCQ .i«i OW O O in £ o cj Q d o Si a 0) (/5 tO"^ C/2 C O u a . r>- o* d cow 0) > .. m i/i 'S oj rt CO CO rt CO OS OT CO CO .d -SCO W) dt-r- 03 03' ^^ C^ CO CO(N,, tooo W 0) C 03 X! a X 0) O) COCO S Si OO d o OT to CO oi" to d 03 C co< 03 ;:;KhJco c c o X. a . CJ N »-' CO d w 3 a ^< 'S "5 « :;! id ^ c ^ ^o ^ s 0) o 2 .ti ® c « ^ C: X '-' M . '^% s< "" ID +j ^1 c ^ / c a y •0 c c ir. m u O O td +-> c a V •c y . o .S " o 00 c o y o 5 ^ c O o q2 -5 «^ c d o O o o < o ►—I w o CO W o o w < h CO d OT •-• (U C O r? is «^ a oj«4-j T-l OT < ^ o o o o o V(-l <4-| Vf-( V4_| <4-| ■«-» .|J .fJ -M .t-3 a a a a a a> gj OJ (U (U o o o o o X X > o o o >H >^ >H >H >H >^ ^ 4^ "^^ 5fi d o a+» J3 O OT in O t a o d W) X! o 5 a ^ oj --^ w D >> 00 4J d OT r "^ b« d 03 PQ oj OT rH 00 CO 1— I 0:1 OS 00 00 000 00 co3 c/2 :§ q 05 „ o •-J^J o3 • d CO o OT ^ X! <^ S CO O (U O) (1) S CJ >> o OO-t^Tj^ .d T-HCOr-tCO O q d o .d y B J* _ OT OT O OT o 0) 0) o (u ^ ^ ^ C"* ^ > 'Hi) d 03 CO C35 CO CO o OS 4) . > 2x: •^ 10 Soy 0) CO ^ CD CO 1—1 Oi Oj • u S J^co •T-t d O di o X! coO^ XJ o u < OS 4-> CO • «-i oS a to • .-« OT OT OT U o3 *COl^05(NO'-'XO:'*C00500CO(N oO'-t IO1-H1— I to r-li— (1— ( t— ( 1-1 toco (N iC o to o to o co"-*" CO tOOO o to O to o to o 00'-' coo o 1— I f— I o O CO t>- OS^O^CO CO CO CO OS o ei •c a o Vi a a < •♦J Xi be O' O' 0(N O'* 0000 0000 . OO,^ O(M(NOi-iOC0. ^(M CO ^CO t^ i-H CO to CO CO ^ 1-H Ttl o o d ^— >CO (-1 aM-4 d Ui 5 X 03 O ^ c3 w biO 3 g V, -1-^ a; d 3 C ^, o d d ^Ca; o •w a o o O X '^ to o 00 o o »o 0000 o CO CO 00. '^ ^^o 00 00 dd to OS o CD CO o o d CO • CO CO 00 00 TfHCO co^^co (N o o '^" o of 8 OTt^oosoo-^oocoooto coo coooo cOOOi-iOOOOOCOOOO '-10 '-'OOO SOcO(M(M'-iO'^COCOt^tO»0(MOtOO (N'-HrfOSCOtOOSCO'-HCOiMCOCOtOCMI^ t>. »-i CO ^ 1— ( ifH cpecial Commissions— 1. Penitentiary Build'g Commissioners 2. Perry Victory Centennial Commis- sioners 1913-14 1914-15 Total $ 507,500 5Q,000 376,000 193,100 56,700 4,000 5,000 11,000 $ 800,000 • ••••• 30,200 151,600 ' 3,566 5.000 $1,307,500 50,000 406,200 344,700 64,200 10.000 11,000 43,900 4,600 2,450 3,750 43.900 3,100 2.450 3,250 87,800 7,700 4,000 7,000 31,000 15.000 46,000 2,500 2.500 5,000 7,700 7.700 15,400 117,860 •••••• 117,860 50,000 50,000 rv :■ ■> ^^ EFFICIENCY AND ECONOMY COMMITTEE. 3. Panama-Pacific Commissioner. 300,000 .... joonnn 4. Memorial Commissions (two). • 20818 2fi'^S 5. Monument Commissions (four) 33 100 '.'.'.'.' fifl 6. Education BIdg. Commission.. loioOO .....'. i^ '^°'*'' • $1,830,978 $1,068,200 "^Z^ATi r.. u^^^w^^ °^ ^^^ important commissions have a very recent orinn fj.n rtn^f r''"""^ re-organized. The office of the Illinois and Mifh- igan Canal Commiss|oners dates back to 1870 and the State Architect's office was established m 1899. On the other hand, the Highway Com Tn ' P^rlV''^ -'"^ Game Commission, Rivers and Lakes Comml w^hin fh. 1 ?T""°" ^"'^ State Art Commission have been created Ztllt ' **''"" ^%^"- ^^^ °''J«t of most of the recent legislation 1 .t° obtain a more effective centralization of administration than had existed before. Control of State Highways has been concentrated in a State commission ; fish and game laws are now enforced by a single cornmission whereas two independent authorities had existed ; the ad- ministration of state parks had been placed largely in the hands of a Sn°rT„rfT'r' *''" organization of the%i^ers and Takes com' mission represents the same tendency. itv ; Jllff !f ' ^°."',^^^'"' "eed for more complete concentration of author- ty in the administration of some of these function^. Control over the water resources of the state in the interests of na. Nation commerce water power development, sanitation, water supply control drainage wifhouTirnr ""T '''°"'^ ^ l''''^ '" some single state autho g without exceptions being made that would seriously limit its powers abolistd'anV^? " '"°'f- ""^ ^''^'^''' ^^"^^ Con.mLioners shou7d be nr^rtir^lf *■ ^""<=t'ons assumed by the waterway officials. The practice of creating special commissions with authority over the erec- tion of specified buildings should be abandoned. Perhaps the greatet bundin°i «"tf l>.-"o„ of authority lies in the maintenance ofJuW m merous offl^^l'"^^ '''^- P' P'"''"* ^'^^'''^ "^ ^^^'ing control in cal se^y/. i? . -^^ no advantages and renders efficient and economi- cal service almost impossible. rh^ ^^1^^%^' ^^^'^ '^ ""."^ ^°' 'ome sort of coordination between wnv= f f government that are established to administer the high- ways waterways, fish and game laws and public buildings. At pres- fhoniV' P""'f^"y no, working relationship legally established al- dSf '.! '/"'' '" P'^?"" ^' « "^^'"^^ of necessity. There is a r™i= ,4 ru''°°?^''^^"'^ ^^"■°" '" *e administration of water frfn^I !f ^"^ ,'^ ^"ij^'"? conservation for the problems involved frequently interlace There is less need for connecting these functions w th highways, parks and public buildings. Logically, however, they a^l form a group that is fairly homogeneous and with future develop- ment their interests are likely to be'come more directly associated. Most of the duties to be performed by the groups of officials under consideration relate to the construction or maintenance of public works or public property of some kind. The nature of these duties demands concentration of authority to produce the most effective results. On the other hand, there remain some large problems, particularly, in highway and waterway administration, the proper solution of which • PUBLIC WORKS, PARKS AND BUILDINGS. 865 requires consideration from several points of view. It seems, there- fore, that there is some necessity for a board or commission with wide jurisdiction but whose primary functions would relate first, to the settle- ment of questions involving more than one bureau, and secondly to planning a comprehensive system for future development. Supervision over the work of any one service should not extend to administrative routine. It is therefore recommended: 1. That the functions of the state relating to highways, water resources, fish and game conservation, parks and public build- ings be grouped into a single executive department ; 2. That this department be placed under the general supervision of a board of three persons appointed by the Governor ; 3. That there be created within the department divisions or bu^ reaus dealing with highways, water resources, fish and game conservation, public parks and monuments and buildings; 4. That each of the bureaus be placed in charge of a single execu- tive head; That the bureau chiefs be given authority to appoint all subor- dinate officials and employes of the bureaus who should, with a few exceptions, be placed in the classified civil service. 5. A REPORT ON THE MILITARY DEPARTMENT OF THE STATE OF ILLINOIS BY QUINCY WRIGHT, A. M. ■'" ' 'r| 1 II. i«:|. CONTENTS THE ILLINOIS STATE MILITIA 871-888 1. History of Legislation ...\... ...... 871 State Legislation ...........,....'. 871 United States Laws .....'.......'.'. 873 2. The Military Forces !.!!.!!.!!.*.! 873 Organized and Unorganized Militia .*.'!.*.*!.*.'!..*!.'.*! .* .* '. '. '. '. ' 873 The Illinois National Guard 373 Enlistment by years, 1901-1912 .* '. . .* *. ...... 874 Relative Militia Strength of States, 19i2 ...!..!...* 874 The Illinois Naval Reserve 575 Enlistment by years, 1902-1912 .... . .' .' .' .* .' .* .* [ ' .' ' ..***** S76 Relative Strength of States, 1912 876 Personnel ' " ' ' g7^ Enlisted Men 876 Officers 877 The Retired List 878 Pay and Allowances 878 Equipment, drills, armories, etc 878 Mobs, Riots and Disturbances 879 3. The Commander-in-Chief !..!.!!! 880 4. The Staff Departments 880 Adjutant General's Department 880 Inspector General's Department 881 Quartermaster General's Department 882 Subsistence Department 882 Ordnance Department 882 Pay Department 882 Corps of Engineers ". 882 Signal Corps .....!..!!.!!...,,! 882 Judge Advocate's Department 882 Militarj'^ Offences 882 Courts Martial 883 Medical Department 884 Medical Corps . : ......." 884 Hospital Corps *..*.*'..'.'.'.*! 884 Medical Reserve Corps 884 5. Finances .*....* saa Military Appropriations and Expenditures 885 Analysis of Military Appropriations, 1909, 1911, 1913 886 Analysis of Military Expenditures, 1910-12 886 o. Comments goy THE UNITED STATES GOVERNMENT ANT THE STATE MILITIA . '. . . 889-906 1 National Legislation ' ggg Constitutional Provisions 889 Congressional Legislation 890 Congressional Appropriations 891 The Dick Law and Subsequent Legislation 892 ivift^^ ^^^ °^ *^^ Militia by the National Government ........ '. 897 1789-1814 * Q07 1814-1864 S; 1864-1914 ...'..'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'. m 3. Constitutional and Legal Conclusions pQl The Jurisdiction of the U. S. Government over the Militia'. '.*.*.'.* 901 ihe Jurisdiction of the State Government over the Militia 901 Cases in which the Militia may be called out ' ' * * 902 Cases in which the Militia may not be called out ' .* 903 The Discretionary Power of the President oos The Leadership of the Militia one General Conclusion g^ li- m I I. THE ILLINOIS STATE MILITIA. I. HISTORY OF LEGISLATION. State Legislation. r Il'^.^^ll"?'' ^'o^fitution of 1818 provided for the establishment of a Mate Militia with the Governor as Commander-in-Chief, to con- sist of all free, able bodied men— negroes, mulattoes and Indians excepted— between the ages of eighteen and forty-five, and resident in the state. Persons with conscientious scruples might be exempted irom service in time of peace on paying an equivalent in money. Company, battalion and regimental officers— staff officers excepted— were to be elected by their respective company, battalion or regiment. Brigadier and Major Generals were to be elected by the officers of their respective brigades and divisions. All officers were to receive cominissions from the Governor to be held during good behavior or until the attainment of the age of sixty years. Members of the militia were exempted from arrest during actual service except for treason, felony or breach of the peace. In accordance with these constitutional provisions, an elaborate military organization was provided for in a statute of 1819 entitled ''an act for organizing the militia of the state." This provided that the commandmg officer of each company enroll all eligible male citizens ; and that such persons be required, to provide themselves with musket, bay- onet, knapsack, blanket, canteen etc. within six months of enrollment. ihe militia was organized into two divisions of 'two brigades each each brigade to consist of several regiments, each one of which comprised one county. The whole military organization was under the control ot the Governor as commander-in-chief, assisted by two aides-de-camp and an adjutant general. The division officers were a major general division inspector, quartermaster general and two aides-de-camp. The r>rigades were under the control of a brigadier general, brigade in- s^ctor, quartermaster general and one aide-de-camp. The regimental omcers were a colonel, lieutenant-colonel, major, surgeon, adjutant quartermaster, paymaster, sergeant major, quartermaster sergeant, arum major and fife major. The battalion was commanded by a "eutenant colonel and the company by a captain with one lieutenant one ensign, four sergeants, four corporals, a drummer and a fifer. In each regiment there was to be one company of artillery and one of wairy. Provision was made for drill at regular intervals, for calling ^nio service, for conduct while under orders, etc. The act was very elaborate and apparently had the intention of putting all able bodied under ^ more or less formal military organization. nnf iTu ^^^^^^} t>?tem as outlined in the law of 1819 was continued until the act of 1877, which virtually installed the present military code. art f ;^^^/5' however, some changes made from time to time, as in an ot i«^6 for "the organization and government of the militia of the ^11 872 EFFICIENCY AND ECONOMY COMMITTEE. 'state," and an act of 1833 with the same title, which provided for five divisions of two to four brigades each and fourteen brigades in all. An Act of 1837, entitled "an act encouraging volunteer companies," introduced a somewhat novel feature in that it recommended and pro- vided for the creation of volunteer companies with a more formal organization and more regular drill than in the regular militia, thus forecasting the later division of the militia into a volunteer organized militia and the unorganized mil'tia. At the outbreak of the civil war a special session of the legisla- ture was called, which passed the act of 1861 "to organize six regi- ments of volunteers from the state of Illinois and to provide for the election of regimental officers and of a brigadier general" and also "an act to prepare the state of Illinois to protect its own territory and to repel invasion and to render efficient and prompt assistance to the United States if demanded." In 1865 .was passed "an Act to provide for the appointment and to designate rank, fix pay, and prescribe duty of the adjutant general of Illinois." The Constitution of 1848 had repeated verbatim the sections of the Constitution of 1818 relating to the militia. The Constitution of 1870 repeated its main features, but provided specifically that the or- ganization, equipment and discipline of the militia should conform so far as possible to that of the United States Army. It omitted the pro- vision requiring the election of officers, thus permitting more central- ized control through appointed officers. An Act was passed in 1874 "to revise the law in relation to the state militia ;" and in 1877 "the military code of Illinois" was enacted, which put the militia on practically its present basis. The active militia were organized on the basis of voluntary enlistment for a term of five years under the title "The Illinois National Guard." The Gov- ernor acted as commander-in-chief, with a staff composed of an ad- jutant general, a commissary general and a quartermaster general The (lovernor was to appoint division and brigade officers, to serve during good behavior ; and company and regimental officers were to be elective. An examining board composed of six or more officers ap- pointed by division commanders was provided, with the function of examining commissioned officers below the rank of brigadier general. In 1893 the organization of the Illinois Naval Reserve was pro- vided for in "an Act to establish a naval militia." The act of 1877 was revised in 1897 by "an Act to revise the military and naval code of Illinois;" and further alterations were made in 1903 in "an Act to establish a military and naval code for the State of Illinois." The most recent act is that of 1909, "an Act to establish a military and naval code of the State of Illinois and to repeal all acts in conflict herewith." Under Authority of Section 3, Art. 2, of this code, which gives the commander in chief authority to reorganize the militia under certain limitations, the governor issued an executive order on Dec. 22, 1913, which took effect Jan. 1, 1914, reorganizing the militia to conform to the organization provided" by Section 3 of the national militia act as amended in 1910, and as required by the War Depart- ment of the United States, in a circular of Aug. 1, 1913, of all states MILITARY ADMINISTRATION. 873 desiring to participate in the national militia appropriation. Umtea states Laws. Since 1792 the United States Congress has legislated on the sub- ject of the mihtia. In 1903 a more thorough system of national regu- lation of the State Mihtia was undertaken through the passage of the so-called Dick Militia Act. This provided for the regulation of the mihtia through the division of militia affairs in the United States Department of War. It also required an annual inspection of the mihtia, at least five days encampment and twenty- four days drill i/Sifnm / ^^^^ ^''^Jl'^^^^^'^ ^^^ ^^"^^^ militia appropriation to $3,000,000 (raised to $4,-ection arose in San Francisco, caused by merely on knowledge of the fact, yet, unless there was such presTe necessity he should not act until a proper leeal reauest w/c ^,il xu^ m^d 'ZZ't^T'^'^''^ '° ^^"^^ thf^ir^S^ouXt slm- Sature could noPr"""'' 'T'^'H '""^''^''^ "« ■"^^son why the c?n£„- r/i s^tiLTrbefn ^oLjliet S ^^°"'^ ^^'^ -^" *^ act JMid|.^^^^^^^^^^ cuting the laws. Further legislation Tin T ilv 1«^1\ ^ -j j r the b"rder states^reff.l^ ^^ ^' ^'•'" ""^"y.^^ses the Governors of volunteers showed ?w^f ' requ.s.t.ons, whereas future calls for th,. IT • Showed that there were many persons willing to enlist for larsYr" TT '" '^T. ''^'^'- The Civil War was fo^ught by regS- oTno?ip;tnce."- ""'''' '*'^" "''''' '' ^"" ^^ ^eiiliffa wll^e I864-IQI4. State?.? J''".,^'''", ^" ^^"^ '"''"'^ '^^^^ n°t been used by the United in^emretaton3^'ofl''' ^f/^^f Assistant Attorney-General Boyd's Spa^sh War T .. P^t""? °^.*^' ^.'''""'""' """'^ regiments in the authoritv wJ; • ! threatened Fenian invasion of Canada in 1866. _^nty was given to call out the militia but it was not necessary ;:« Wheaton, 29. "28 Op. 228. 636. ;J-"?- 900 EFFICIENCY AND ECONOMY COMMITTEE. In the reconstruction riots, the Ku KIux disturbances, and the railroad strikes of 1877 and 1894, the regular army was used in preference to the militia. The President had been given power in an act of 1807 to use the army wherever the militia might be used. With the greater develop- ment of a standing army after the Civil War, it has proved a much more efficient police force than the militia and the use of the militia by the federal government to aid in executing the lawS, and to suppress insurrections has ceased. After the Civil War the states began to change their idea of the mihtia ; and in spite of the fact that the obsolete act of Congress of 1792 remained law, organized bodies, known as the National Guard composed of select volunteers, who really drilled and cultivated a knowledge of warfare. With the development of a military feeling the National Guard came to look upon itself as a reserve force of the army, and this spirit has been cultivated by increased assistance and encouragement from the United States government. The states have made more and more use of their militias as an internal police force. F. T. Wilson in his book, Federal Aid in Domestic Disturb- ances, estimates that the states used their militia no less than 500 times in the twenty-five years from 1878 to 1903. As has already been mentioned, with the outbreak of the Spanish War, the militia were looked upon as a reserve force for the army; and the volunteer act of 1898 permitted National Guard bodies to vol- unteer as such and retain their own officers. While the opinions of Assistant Attorney-General Boyd indicate that in his view these volun- teer militia bodies remained militia of the states, called in to the service of the United States, the more generally accepted view is that they were to be regarded simply as volunteers." Following the War, eflPorts were made to make it possible, through legislation, for the militia to cpme under the supervision of the United States and be ready to serve as a second line of national defense, retaining their status as militia with their own officers and organiza- tion. The Dick Act of 1903 was directed toward this purpose, but does not appear to have accomplished it. The amendment of 1908, however, did provide for making the militia liable to federal service even in foreign war without losing their status as militia. The act was declared unconstitutional, so far as it attempted this object, by Attorney-General Wickersham in 1912, and the policy has now been revived of leaving the militia, as such, a militia of the states, subject to call by the United States only in the three cases mentioned in the constitution (which under present conditions means that they are not likely to be called out at all by the United States government,) and entirely distinct from volunteers, who in combination with the regular army are looked upon as the force of national defense. By the act of 1914 specific authority has, however, been given for the use of the naval militia in foreign war. «2See Report on the Organieatlon of the Land Forces of the U. S., by the General Staff, 1912, p. 55. MILITARY ADMINISTRATION. 3. CONSTITUTIONAL AND LEGAL CONCLUSIONS. 901 The Jurisdiction of the United States Government Over the Militia. The United States Government exercises final jurisdiction in or- ganizing, arming and disciplining the militia, and the states are bound by acts of Congress on these points. The general principle of federal supremacy in the powers granted by the constitution is sufficient to bear out this point. The opinion of the Supreme Court in Houston vs. Moore^^ is also authority for this view. Whiting in "War Powers under the Constitution"^* offers the statement that state legislation cannot constitutionally provide for enrollment in the militia of persons other than those enumerated in the United States law. The same opinion was expressed in a bulletin of the division of militia aifairs of 1910 ;2^ an4 the opinion of the South Carolina Supreme Court in State vs. Lewis in 1837,^^ related somewhat to this point, when it said that in a call of the militia by the President, only those need to respond who were included in the militia as organized under the act of Congress. The recent order of the War department directing a reorganization of the State militias participating in the United States appropriations is another exempli- fication of this principle. The United States Government has jurisdiction to govern the militia in the service of the United States, reserving the appointment of officers and the actual training to the states. It also has the power of calling them out in the cases described. Jurisdiction of the States Over the Militia. The states may exercse a concurrent jurisdiction over the arming, organizing and disciplining of the militia legislating where the U. S. government has not acted or so as not to conflict with U. S. laws. Justice Story's dissent in the case of Houston vs. Moore" is op- posed to this view; but the prevailing opinion in that case and the practice before and since is authority for the statement. The early United States statutes on the subject expressly left to the states the power of organizing their militia, simply giving directory rules which the state might follow if "convenient." Houston vs. Moore also appears to be authority for the view that the states exercise a concurrent jurisdiction in "governing such part of the militia as may be employed in the service of the United States." It is clear by the constitution that th^ states have jurisdiction to appoint officers of the militia and to train the militia according to the oiscipline prescribed by Congress, even when the militia are called into the service of the United States. In general, the states have power to employ the militia as they see tit, and exercise complete jurisdiction over them, subject only to the ^^^ghts^specifically given to the National government in the constitution. »»5 Wheaton, 1. »6w*^,- He refers to 18 Am. Law Rep.. 167 and 22 Law Rep., 477. "3 Hill 3(S Report of the Adjutant General of Illinois. 1911-12. p. 170. "5 Wheaton, 1. p. 902 EFFICIENCY AND ECONOMY COMMITTEE. I' i\ Cases in Which the Militia May be Called Forth. The militia may be called forth by the President, to suppress do- mestic violence and to repel invasion or imminent danger thereof Under the suppression of domestic violence there are two distinct cases. 1 To execute the laws of the Union and suppress combina- tions wtthtn the territory of the United States. This power is pro- vided for in Section 4, of the Dick Act as amended in 1908 and in the Revised Statutes.^* Under it the militia were called out in the Whiskey Rebellion, 1794; Fries Insurrection, 1799; the Burr Con- spiracy, 1806; the Embargo Troubles, 1808; the Patriot's War 1837- the lowa-Missouri boundary dispute, 1839, and the Civil War, 1861 ' It has not been employed since the Civil War, the regular troops having proved more efficient to suppress rebellion against the national government, and unless an extraordinary exigency should arise, it does not appear probable that they will be used again. 2. To suppress insurrections against the government of any coo^* ^}^^ P°^^^ ^^ provided for in the Revised Statutes, section iT 1 ' ^^" °"^^ ^^ exercised by the President upon application of the legislature or the executive of a state when the legislature cannot be convened. It has been employed on but two occasions in the his- tory of the country, the Nat Turner Rebellion of 1831, and the Dorr Rebellion of 1842. Upon the occasion of the Vigilance Committee troubles m San Francisco in 1856, the aid of the President was asked under the law by the Governor, but was refused on the ground that the legislature should have made the request. Great reluctance has always been shown to exercise this power, as there is danger of un- warranted federal interference in the internal affairs of a state. In the two cases cited regular troops were used in addition to the militia and on all occasions since have been used exclusively. With the increased efficiency of the National Guards it is probable that states will be better able in the future to settle their own insurrections, with- out calling for national aid; and if the latter is called for, it'seems probable that regular troops will be sent instead of calling out the militia. Under the power to repel invasion or imminent danger thereof, there are also two cases, at least as expressed in the early statutes: 1, Foreign Nations; and 2, Indian Tribes. The phrase giving the power expressly in case of invasion of Indian tribes was omitted in the Dick Act of 1903, although it was under this power that the mihtia were summoned in the Seminole War of 1818, the Black Hawk War of 1832, and the second Seminole War of 1836. An Indian up- rising, now, would partake more of the nature of domestic violence, and in such an event undoubtedly the regular troops would be sum- moned. The power to repel invasion of foreign nations is conferred by Section 4 of the Dick Act of 1903 as amended in 1908. It was employed in the threatened French War of 1799, the Louisiana Fron- tier Dispute with Spain in 1806, the War of 1812, the Sabine Affair of 1836, when War with Mexico was threatened, and the Mexican War o f 1846. The War of 1812 alone is important; as in the other •"Sections 6298, 5299. MILITARY ADMINISTRATION. 903 cases either there was no active service or other troops were relied on principally. The precedents of the War of 1812, the Seminole War of 1818 and the Mexican War of 1846, as well as the opinion of Attorney-General Wickersham in 1912, appear to be authority for the view that militia may be used even outside of the country if necessary to "repel invasion." In case of a foreign invasion it is probable that the regular army would be relied upon first, and then, following the precedents of the Mexican War, the Civil War and the Spanish War of 1898, National Volunteers would be called for. It, therefore, appears improbable that the militia will be called out for this purpose in the future. The idea of embodying the militia as a national force capable of being used for general military purposes is discussed elsewhere. It is sufficient to note here that the attempt to exercise such a power is probably unconstitutional, and is considered by many authorities, notably Major General Upton, as unwise.^^ * Cases in which the Militia May Not he Called Forth. The militia cannot be called into the service of the United States for use in foreign war, unless it be to repel an actual invasion. This is a question which is still open to dispute and there is much legal opinion which takes the opposite view. A direct judicial settle- ment of the question seems to be prevented by the fact that the courts would regard any "calling out" of the militia by the President as valid. This question is taken up later. The meaning of "an invasion" and of "repelling" are capable of varied interpretations. Any foreign war might be regarded as an "invasion" such as to justify a calling out of the militia. It would seem, however, that an "invasion" should be interpreted rather as re- ferring to an immediate military operation threatening the frontiers of the country, in which case a foreign war in distant territory, whether offensive or defensive could not be regarded as an "invasion." But admitting the existence of "an invasion," what acts are in- cluded in "repelling" it? Attorney General Wickersham indicated a belief that the phrase could permit of pursuing the invader outside of the country. He says:*® If the militia were called into the service of the General government to repel an invasion, it would not be necessary to discontinue their use at the boundar>' line, but they might, (within certain limits; at least) pur- s"^ and capture the invading force, even beyond that line . . . This may well be held to be within the meaning of the term "to repel invasion " Pomeroy, however, thinks that while the militia could be "called out" before the invader had crossed the frontier it could only be em- ployed within the territory. He says :*^ Insurrection and invasion must be internal. We do not repel an in- vasion by attacking the invading nation upon its own soil. Still, there can be no question that' the militia may be called out before the invaders have set foot upon our territory. It is a fair construction of language to say that one means of "repelling" an invasion is to have a force ready to ___receive the threatened invaders when they shall arrive. 6'>nrpI!il^''^o^^*2"' 1^^ ¥J}k^^^^ ^®l*^y S^ ^^^ U"*t«<^ States, Senate Document, 494, Of thi^?T"^;' ^°1 Session, 1912 See also, Report on Organization of the Land Forces Of the United States, by the General Staff, 1912, and articles by J. M. Palmer Infan- ^4*^0^''?.^^' IV 33^' L- «• Naptzger, Infantry Journal. 11; 453. ''a^er. A"an ^ Op. 324. **Pomeroy, Constitutional Law, p. 387. Ml 904 EFFICIENCY AND ECONOMY COMMITTEE. MILITARY ADMINISTRATION. 905 I While realizing that the legal opinion is divided on the question and that it is far from being definitely settled, the writer believes that racticT ^''^''^''^^ ^^^"^^ '^ justified by the weight of opinion and Authority for the contrary view, that the militia may be used in foreign war may be found in the use of the militia in the Mexican war of 1846, which could scarcely be considered "an invasion," al- though the authority to use the militia was justified on the ground that it was. Ihe mihtia on this occasion, however, saw no service, and national volunteers and regulars were relied upon in the prosecution of the war. The use of the militia in the war of 1812 could more clearly be justified on the ground of invasion, as could its use in the Indian wars of 1818, 1832, and 1836. As has been noted the militia used in the Spanish war of 1898 have been generally regarded as volunteers and so do not form a case in point here. The best authority tor the use of the militia in foreign war is the opinion of Tud^e Advo- cate General Davis in 1908,« that the declaration of war is law for r inno''"*'''".''^ '^^'''^ ^^^ "^'^'^'^ "^^^ ^^ called out; and the statute of 1908 was based on this opinion, specifically giving authority to use the militia within or without the territory of the United States'* A similar use of the naval militia is authorized by the act of February, Opposed to the judge advocate's opinion is the doctrine of the non-extraterritorial character of the United States Law, as expounded in the opinion of Attorney General Wickersham in 1912,*^ in which the law of 1908 was declared unconstitutional so far as it contem- plated the use of the militia in foreign war other than "invasion." Ihe expressed opinion of such authorities on constitutional law as Daniel Webster,^* J. N. Pomeroy," Von Holtz,^« Ordronaux,*^ and the opinion of the Supreme Court of Pennsylvania in the case of Kneedler vs. Lane,*« also indicate that the militia cannot be used out- side of the country, at least in foreign, offensive war. As a corollary to this statement, it seems that the militia as such cannot be compelled to enlist in the service of the U. S., or to transfer their services, or in any way be obliged to serve in foreign offensive war. If the militia cannot be used as such in foreign war they can- not be compelled to serve by a simple change of name or similar sub- terfuge. According to the theory of the militia they are a state body, to which the state has a right except in the cases specifically provided by the constitution. If the United States government seeks to put an additional burden upon the militia such as compelling them to trans- fer to the United States army in case of war, it is depriving the states of this right to their militia. It is true that under the power to raise armies the government may resort to conscription as a measure "necessary and proper" for that purpose ; but it seems doubtful whether the militia as such may "^%p!*3fr^^***°^^ Record, 60th Congress., 1st Session, 1908. Vol. 42. p. 6943. "Quoted Ordronaux, Constitutional Legislation, p. 503. ^''Constitutional Law, p. 387. . h . <«Constitutional Law, p. 170. ^'Constitutional Legislation, p. 501. "45 Pa. St.. 238. 276. be drafted into the service of the United States, since Congress is specifically limited by the constitution in its treatment of them. Furthermore, the question of officers would oppose a dilemma to any such arrangement. If the militia are serving as such the gov- ernors must appoint officers, but if they are made a part of the United States army the President or certain specified national officials must appoint officers. The militia cannot (Assistant Attorney-General Boyd to the contrary) be both at the same time. The power to raise armies is one thing, and the power to call out the militia is another. The, mihtia as such cannot, according to the limitations imposed by the constitution be included in a system of raising armies. As a further extension of this principle, it is doubtful whether the organized militia can voluntarily place itself under obligations in- volving military service in foreign offensive war under the U. S. gov- ernment superior to the rights of the states. This is the point raised by the proposed militia pay bill of 1912. If the militia are a state body to which the state has a complete right of use except under the hmitations named in the constitution, it seems questionable whether as a body they may, voluntarily, obligate themselves to the United States government. Such an action would in fact deprive the states of a portion of the service of the militia guaranteed them by the con- stitution. While it may be said that such an act is justified because the states have given their consent, it would seem that this would not prevent a state legally withdrawing its consent on any occasion. In such a case the national government would find its military arm paralyzed as happened in the case of the New England States in 1812. The minority report of the House Committee on the Pepper Militia Pay Bill mdicated this point." The Discretionary Power of the President. . The propriety of calling out the militia on any particular occasion IS entirely at the discretion of the President. This point was decided by the Supreme Court of the United States in the cases of Martin vs? Mott, and Luther vs. Borden. This power places a distinct limitation upon the applicability of the constitutional principles laid down in the preceding discussion of the cases in which the militia cannot be called out. If the President as a political officer calls out the militia for a use not warranted by the constitution, the courts have said they will not inquire into his action. The constitutional limitations upon the use of the militia are thus made simply directory upon the President, ine courts cannot apply or enforce them. This makes it impossible for the courts to pass upon the question or what constitutes invasion, insurrection, or obstruction of the laws lor the President having acted, the court will presume that his discre- tion was honestly exercised and that he observed the constitutional limitations and will not inquire back of his call for the militia. The Leadership of the Militia. The President may lead the mititia in person when called into the ^frvice of the United States or appoint officers to lead them. Section "82nd Congreii, 2nd Sesilon, 1912, Houm Report 1U7, Part 2, 906 EFFICIENCY aND ECONOMY COMMITTEE. Two of Article Two of the constitution clearly makes the President "commander-in-chief of the militia of the several states when called into the actual service of the United States." The Massachusetts justices in 1812'"'0 affirmed that this power could only be exercised by the President in person but the opinion of Secretary Monroe" in answer to the Massachusetts objection and of Attorney-General Butler in 1835^2 as well as the practice on all occasions upon which the militia have been used by the United States government would seem to indi- cate that the President may appoint officers above those of the highest rank in the state militia. Just what officers the President may appoint and where the right of the Governor to appoint officers, as provided in Section 8, Article 1, of the constitution, ceases has not been definitely determined. General Conclusion. The general conclusion reached is that the use of the militia as such by the United States government is no longer important. For all of the cases for which it may be called out under the constitution the regular army is likely to prove sufficient, and if so is better. The militia as such have not been used by the United States government since the Civil War. The use of the militia as a second line of national defense has not proved successful in the past, is of doubtful constitutionality, and is regarded as inexpedient by many military authorities.^^ The position intended for the militia under the constitution ap- pears to be that of a strictly state institution, the final force backing the executive power of the state, to be called out by the United States government only on occasions of extraordinary necessity. The militia as an organized National Guard has become more efficient, and is a very important adjunct of the police force of the states. The states are making increasing use of their militia to preserve order within '. State service. Four persons appointed by the Governor for four year term, at $2000 per year. State service. Law may be adopted by any county, city or local division. Three commissioners appointed by Governor for six year term, at $10 per diem, not to exceed $1000 per year. State service. Local law in Milwaukee. Three members appointed by Governor for six year term. President $4000, other members $3000 per year. State service. Optional law for cities. Three members for six year term. President $4000, other members $25(X) per year. This Commission has jurisdiction over County as well as the State service, and supervision over municipal commissions. Three commissioners appointed by Governor for six year term, no salary. Law may be adopted by any city. Three commissioners appointed by Governor for four year term, at $3000 per year. State service. Local commissions in some cities. State service divided into unclassified and classified. Commission has power to classify positions as exempt or non-competitive. In cities provision for a labor class. Commission to prepare rules covering classifications, examinations, promotions. Non-competitive examina- tions not prohibited. Commission classifies positions in accordance with duties. Unclassified and classified service. Commission may classify positions as exempt, competitive, non-compet- itive, non-competitive or labor; but must give hearing on making exemptions. State service divided into unclassified and classified. Commission classifies positions as exempt, competitive, non-competitive, labor and legislative employes. State service divided by law into unclassified and classified service. Commission has power to prescribe titles, maximum and minimum pay, and methods to determine efficiency of classified service ; no power to classify positions as exempt or non-competitive. Ohio. Colorado. California. EXEMPTIONS : New York: Massachusetts: Connecticut: New Jersey: Wisconsin. Illinois: CIVIL SERVICE LAWS. 927 State service divided into unclassified and classified. Commission may by unanimous resolution exempt positions from classified service. No provision for non-competitive examinations. Commission to make rules for classification of offices, and for appoint- ments, promotions, transfers, removals, etc., and for keeping a record of efficiency of employes. Unclassified and classified service. Commission may provide for non-competitive examinations and suspend rules in particular cases. All rules to be approved by the Governor. Unclassified and classified service. Commission to classify positions with regard to duties, and grade all positions with regard to salaries. No provision for non-competitive examinations. Deputies of principal elective officers; one secretary for each officer or Board, except Civil Service Com- mission ; two clerks in each court ; other positions which the Commission classifies as exempt, or non- competitive. Judicial officers; officers elected by people or City Council ; heads of principal departments ; employes of the Treasury ; savings bank board ; teachers ; secre- taries of Mayor, police and fire commissioners shall be exempt. Commission determines what positions shall be classified. The Commission may, if it desires, exempt deputies of principal elective officers, one secretary or clerk in each board ; one private secretary or stenographer of each judge or principal officer; all officers who must be physicians and any other positions which the Commission shall find impracticable to fill by test. Elected officers, officers appointed by Governor; of- ficers *and employes of the Legislature ; heads of de- partments; attorneys; persons in the military service; teachers in schools and state institutions; County superintendents ; first assistant of principal officers ; one private secretary or stenographer to each prin- cipal officer; all officers who must be physicians and any other positions which the Commission exempts because filling by examination has been found imprac- ticable, after a hearing. One deputy of each of the officers and the Chief Clerk of any Board or Commission; one stenographer to each officer, board or Commission; employees of the Supreme Court; any other positions which the Com- mission may find impracticable to fill by examina- tion, after a hearing. Elective officers; persons appointed by the Governor; employes of General Assembly; Judges and officers appointed judges; clerks of court; persons in the military service; instructors of scientific staff and students assisting at the University of Illinois and Normal schools. Special Attorneys; building and loan and bank examiners; assistants to the Attorney General; superintendents, wardens and chaplains of State institutions; secretary or stenographer in each elective office, and a few other places; clerks and watchmen in the elective offices. 928 EFFICIENCY AND ECONOMY COMMITTEE. CIVIL SERVICE LAWS. 929 Ohio: Colorado: California: PRKSENT EMPLOYES : New York: Massachusetts: Connecticut: New Jersey: Wisconsin: Illinois: Ohio: Colorado: California: EXAMINATIONS : New York: Massachusetts: All officers elected by popular vote ; heads of depart- ments appointed by Governor; all officers of the Gen- eral Assembly, persons in military service ; faculty and library stati in public schools, universities and librar- ies supported wholly or in part at public expense- two secretaries, assistants, clerks for each elective of- ficer, board or Commission, except Civil Service Com- mission; Deputes authorized by law to act for their principles. Commission has some discretion in deter- mining whether a position shall be classified, and may suspend rules in particular cases. Judges; Boards appointed by the Governor; Gover- nor's private secretary; elective officers; one deputy for each elective officer; teachers; private assistants of Attorney General ; employes of the Legislature. Employees of the Legislature and one assistant for each person employed ; appointees of the Governor and one confidential assistant, first deputy of each elective officer, assistants to the Attorney General and special attorneys; wardens, superintendents and parole of- ficers for State institutions ; persons employed by the General Assembly, Universities and Normal schools; the State Librarian and two assistants; employees of the State Railroad Commission; superintendents and heads of departments. By unanimous vote commis- sion may exempt positions from the classified service. No provision No provisidn. Employes in the service more than six months before the Act took effect were covered in. Employes in the service less than six months required to take non- competitive test as a condition of remaining. All present employes covered in without examination. Persons employed covered in without examination. Covered in without original examination. Not covered in but are required to take examination within twelve months as a condition of continuing in the service. No provision. No provision. The Commission to specify qualifications. Appoint- ments to persons shall so far as practicable be made from residents of the judicial district including the locality of the appointment. Where there is no list of persons eligible for appointment, the appointing officer may nominate a person for non-competitive examination who may be appointed after such non- competitive examination but such appointment shall not continue for a longer period than two months. No provision except that examinations shall be prac- tical and that no corrupt practices shall be used. Connecticut: New Jersey: Wisconsin: Illinois: Advertise in the practical. usual way. Examinations to be Ohio : Colorado: California: APPOINTMENT : New York: Massachusetts: Connecticut: New Jersey: Wisconsin: Illinois: Ohio: Colorado : California: PROMOTIONS : New York: Massachusetts: Commission to specify by rule recommendations as to rating, age, sex, health, etc. Examinations to be practical. Open only to residents of New Jersey. Examinations to be practical and open to citizens of Wisconsin. Open to citizens of Illinois, except for technical posi- tions which may be opened to non-residents. Com- mission to prescribe rules as to rating, age, sex, health, habits, moral character and qualifications to perform duties. Same as in Illinois. Examinations shall be- impartial and practical in char- acter. Qualifications, etc., to be fixed by rule. Examinations shall be practical in character. Appli- cants for trade positions may be rated solely on ex- perience and physical condition. Certify the three highest on list. Certify the three highest on list. A "limited" number shall be certified of whom one shall be selected. A candidate certified three times without being selected may be stricken from the list. Highest three shall be certified and a person certified three times and not appointed shall be stricken from the list. Certify three at head of list. After certification three times without being appointed the name may be dropped from the list. Temporary appointments may be made for a period not longer than two months when there is urgent need. Certify the one highest. Make temporary appoint- ment if no eligible list exists. Temporary appoint- ments for thirty day periods also permitted. Certify three highest on list. A person certified more than three times to the same appointing officer may be omitted from future certification to such officer. Temporary appointments may be made as under the Illinois law. Certify the one highest on the list. Certify the three highest persons. Vacancies shall be filled so far as possible by promo- tion from a position in a lower grade in the same department. Promotion on basis of merit in examinations, and seniority of service. 930 EFFICIENCY AND ECONOMY COMMITTEE. Ili ! Connecticut: New Jersey: IVisconsin: Illinois: Ohio: Colorado: California: REMOVALS : New York: Massachusetts. Connecticut: New Jersey: Wisconsin: Illinois: Ohio: Colorado: California: Rules shall provide for promotions on a basis of merit, seniority and special tests. Vacancies to be filled by promotion from positions in lower grades in same department. Promotion as far as possible from positions in lower grades in the same department, based on merit and seniority to be affected by Commission. Commission to fix lines of promotion ; examinations to be promotional only or open to general public as deemed advisable. Same as in Illinois service. Not specified by law. Vacancies to be filled as far as possible by promotion of persons in the same department where vacancy exists. Department head has right to remove. Veterans of the Civil War shall not be removed ex- cept after a hearing before the State Board of Arbi- tration where he shall have right to be present with counsel. Appointing officer has right of removal without hold- ing a hearing. Person removed may file an answer to the reasons given for the discharge. A written statement of reasons for removal shall be filed. No hearing provided for. Appointing officer can remove, but must furnish reasons for removal to the subordinate, who may make a reply thereto. Suspension §hall not be for more than fifteen days. Provides a period of three months in which discharge may be made without the filing of charges. After that time charges are necessary and a hearing must be held. No charges necessary in case of laborer or of persons having custody of public money for safe keeping, for which another person has given bond. Department head to furnish the subordinate dis- charged, laid off or suspended with a copy of the order of discharge and his reasons for same, giving the subordinate a reasonable time to file an explana- tion. Department heads can remove, but must furnish the person discharged with a written statement of his reason and allow a reasonable time for the filing of an answer. The Department head must furnish the employee with a written statement setting forth cause for removal, allowing suitable time for filing of an answer of the employee with the commission. The appointing of- ficer shall then hold a public hearing, and if charges are preferred to the Commission it shall hold a hear- ing. The judgment of removal by the appointing power shall be final. INVESTIGATIONS I New York: Massachusetts: New Jersey: Connecticut: IVisconsin: Illinois: Ohio: Colorado: California: CIVIL SERVICE LAWS. 931 No provision. No provision. Commission shall investigate all matters touching on the enforcement of the Act and rules. No provision. Make investigations concerning all matters pertaining to enforcement of the Act and rules. Commission shall investigate efficiency of officers and employes and report to department heads findings and recommendations relating to same. In case recom- mendations are not put into effect within' a reason- able time, a report shall be transmitted to the Gov- ernor. Commission shall investigate the duties imposed by law and prescribe the manner of performing duties, and cost thereof and shall require reports concerning employes; a report by the Commission to a depart- ment head or failure of an employe to maintain a satisfactory efficiency record, shall be sufficient ground for dismissal. No provision. Manner of conducting investigations and procuring attorneys or witnesses fixed by the Act. •fi«*^i> CIVIL SERVICE LAWS. 933 I III. COMMENTS AND SUGGESTIONS. The Civil Service laws of Illinois compare favorably with similar laws to be found in other parts of the country. Experience in the ad- ministration of the present laws, however, brings to light from time to time, possibilities of change and improvement. Economy and ef- ficiency in the administration of the state government cannot be secured without trained and competent men in the Civil Service; and the gradually increasing extent of the functions performed by the state government render it continually more important that the merit sys- tem of securing public servants should be extended into all branches of the. public service where it is feasible. Selection of the Commission. In the United States government and in all of the nine states now having Civil Service Commissions, the law provides that the members of the Commission shall be appointed by the Governor. Practically no restrictions are placed upon the Governor's choice, through quali- fications required of the Commissioners, except that it is usually pro- vided that not more than two of the three members of the Commi^ion shall belong to the same political party. The requirement that not more than two-thirds of the Commission shall belong to the same political party seems to have been adopted in Civil Service laws, as in other cases, with a view to eliminating so far as practicable, political considerations in the selection of the Com- mission. In practice, however, such a provision has the opposite ten- dency, since it carries with it the implication that the members of the Commission shall all bear a party label, although not more than two- thirds shall bear the same label. The result of this provision is to make the apparent intention of the law to be that the Commission shall be party men, and, with some exceptions, this condition is produced in practice. Bi-partisan combinations in favor of a lax administration of the law are rendered possible. At the same time, the bi-partisan character of the Commission prevents the concentration of definite responsibility for such lax administration upon the party in power. Such provisions in regard to party appointments on Civil Service Commissions are still upheld by those who recognize that in other fields they do not serve the purpose for which they were intended. The general tendency at the present time in public administration is towards placing definite responsibility in the hands of the chief execu- tive for the- higher appointments, and at the same time removing other positions from all political influence. The question may fairly be raised whether the appointment of Civil Service Commissioners should not be placed definitely in one or the other of these classes, or whether such positions have peculiar characteristics which justify an excep- tional treatment. And it should be recognized that the present meth- ods of appointing these officers doe^ not definitely fix responsibility nor does it ensure the elimination of political influences, but rather tends towards a divided partisan control. A proposed plan for the selection of Civil Service Commissioners on a non-political basis is contained in the draft of a model Civil Serv- ice law prepared by a committee of the National Assembly of Civil Service Commissioners. This draft provides that Civil Service Com- missioners shall in the first place be appointed by the Governor, but any vacancy in the Commission shall be filled by competitive examina- tion, held by a board of special examiners composed of (a) a person who has been for at least two years a member, secretary or chief ex- aminer of a federal, state, county or municipal Civil Service Commis- sion; (b) a person who has for at least two years been engaged in selecting trained employees for positions involving professional or technical skill; and (c) a person who has been for at least two years a judge of a court of record within the state. Under this plan the members of the Commission should serve not for a fixed term, but during good behavior or until retirement at a given age. Trials for removal of a Commissioner for* cause should be conducted before a board constituted in a manner similar to that of the appointing board.^2 This plan is urged on the ground that the Civil Service Commis- sion is not a part of the administration which is engaged in carrying out the special policies of such administration and should, therefore, be so far as possible free from political control. The Commission, it is said should not be subject to the control of those against whose in- terests it may sometimes be its duty to enforce the law ; but should be an independent body of employment experts removed as far as possible from all political control. In considering this proposal, attention should be called to the fact that it is the work of the National Assembly of Civil Service Com- missioners; and is open to the objection that it represents the views of a class of public officers, with a natural tendency to emphasize and strengthen their own positions. An attempt was made to prepare a model Civil Service law by the joint action of this organization and the National Civil Service Reform League, which has taken the lead m the general movement in this country for Civil Service laws based on the merit system. But after several meetings of Committees of both associations, the bill as prepared is the work of one Committee, for which the League and its Committee have assumed no respons- ibility. Two points of criticism may be made against the proposal itself. In the first place it is based on the same confusion between political and party control which is evident in the existing laws. While it may well be urged that a Civil Service Commission ought, if possible, to be a non-partisan body, it may be seriously questioned whether it should fnrn^^^r **^^^ connection may be mentioned the suggestion of Mr. Robert Catherwood, Ipp/Ih^k ** "member of the Cook County Commission, that the Commissioners be se- Inlu "•^' ^'O'^P^^titive examination conducted by a Board appointed by tlie Chief -usuce of the State Supreme Court and the President of the State University. 934 EFFICIENCY AND ECONOMY COMMITTEE. CIVIL SERVICE LAWS. 935 be removed from all political control, in the better sense of the word political. If the ultimate control of appointments to the public service were entirely removed from popular control, there would be good g:rounds for the charge often made against the present Civil Service laws, that this would lead to a permanent bureaucracy, which could easily acquire control over the properly political organs of govern- ment. In the second place, the plan proposed definitely has in mind that Civil Service Commissioners should be technically trained employment experts. This is a decided change from the ideas of the early leaders m the Civil Service reform movement. The purpose in most, if not all, Civil Service laws has been that the Civil Service Commis- sioners should be public spirited citizens with a large knowledge of affairs, who could formulate a proper system of rules and regulations for the selection of public officers and employes; but that the tech- nical work of preparing suitable examinations and passing on the quali- fication of applicants should be carried on by technically qualified ex- aminers, under the direction of the Commission. The proposed plan points towards a Commission whose members shall themselves be com- petent examiners. If these criticisms are sound, it should be frankly recognized that Civil Service Commissions should be subject to political control ; and that the selection should be made by the chief executive." It is not altogether clear whether that power and responsibility should be com- plete and unrestricted; or whether in view of the patronage system which has prevailed in this country, it may be advisable to continue for a time the limitation on party appointments. But it should be recog- nized that this limitation does not ensure non-partisan appointments, but rather tends towards bi-partisan Commissions. Exemptions from the Competitive Service. The Illinois Civil Service Commission has no power to cover into the classified service any positions now exempt, nor to make any ex- emptions from the positions in the classified service, as the exempt classes are specified in the law. This may relieve the Commission from some troubles and responsibility ; but it would seem that a greater degree of discretion might well be authorized, both to grant exemp- tions and to cover into the classified service certain positions now exempt. Either of these actions might be made to require a unani- mous vote of the Commission after a hearing. At the time of the passage of the law of 1911, the Illinois Civil Service Reform Association recommended that the unclassified service be restricted to elective officers, persons appointed by the Governor subject to confirmation by the Senate, judges and their appointees, court clerks, notaries public, teachers and administrative officers in state educational institutions and servants at the executive mansion. The exemption in the law as to appointments made by the Governor with the consent of the Senate is now construed to exempt a number i^The local administration of civil service laws may, however, be effectively man- aged by an officer chosen by competitive examination, who should act under tbo supervision of the general rules and regulations of the State commission. of appointments which are by law to be made by the Governor without an express requirement of Senate action. Under this construction, mine inspectors and state factory inspectors are exempt. There is no good reason why such officers should be exempted. The exemption of bank and building and loan examiners and of clerks and watchmen under the elective state officers seems to have been due to political considerations, and it is difficult to see why they should be excepted. The experience of Wisconsin in placing legis- lative employes under the merit system indicates that this might also be done with advantage in Illinois. Such a change would have the effect of relieving the members of the General Assembly from much disagreeable importunity, and afford them more time for their regular duties. On the other hand, it is difficult and sometimes impossible to fill some positions now included in the competitive, classified service by the methods of the Civil Service Commission. With the growth of the State service this difficulty will increase. Moreover the specifica- tion of exempt positions is more properly an administrative than a legislative function; and if exemptions are determined in the statutes, they are likely to be made in many cases from considerations of poli- tical patronage. A discretionary authority to authorize exemptions or non-competitive examinations, either for specified classes of posi- tons or for particular places, would introduce a useful flexibility in the system, such as is provided in the civil service laws of the United States and in most other states. Number of names to be certified. The Illinois Civil Service laws differ from the earlier laws of the United States and other states in limiting the certification and appoint- ment to the single name which stands first on the appropriate eligible list; while most other laws provide for the certification of the three names first on the eligible list from which the appointment may be made. The Illinois provision deprives the appointing officer of any discretion, and practically places the appointing power in the hands of the Civil Service Commission. In operation, too, this provision at times causes delay in filling vacancies — as if the first person certified declines the appointment, it is necessary to ask for another certifica- tion — and this procedure may have to be repeated several times. The certification of three names would seem to be sufficient limitation to ensure the selection of candidates technically qualified ; and at the same time to give the appointing officer a reasonable discretion in consider- ing questions of adaptability to a particular position which it is difficult to test by a general system of examination. Removals and Discipline. It may also be questioned whether the requirement of a formal investigation to authorize any removal from the classified service is not unduly restrictive. This provision protects the officer or employe rather than the public service, and may be said to give a special and unnecessary privilege to those in the classified service. It is probable tl^at in operation the investigations of the Civil Service Commission 936 EFFICIENCY AND ECONOMY COMMITTEE. CIVIL SERVICE LAWS. 937 have not prevented the removal of any person against whom proper complaint has been made. But the provision is likely to encourage lax and inefficient service which falls short of the point where formal charges can be sustained. A provision requiring removals to be re- ported to the Civil Service Commission and authorizing that body to investigate any cases which it deemed necessary, with a power to rein- state after investigation, where conditions warrant such action, should be sufficient to prevent removals without proper cause. All of the Civil Service laws in the United States are defective in failing to provide for a system of discipline over subordinates in the public service for minor shortcomings which are not sufficient to jus- tify removal. With a proper system of discipline the efficiency of the public service could be much improved. Miscellaneous. Some provision should probably be made to obviate the abuses which have grown up in connection with the probationary period of three months for new appointees, and also in connection with the privilege of making temporary thirty day appointments. Some consideration should also be given to the question of a re- tirement fund for superannuated employes. Any existing funds for pensioning public employes should be consolidated and some plan should be evolved, preferably a contributory plan, along the lines recommended by the United States Commission which has investigated this subject. Civil Service laws proceed upon the basic idea that for entry into the public service merit and fitness can be tested by examination ; but to accomplish this end the preparation of examination questions and the grading of papers must be entrusted to expert examiners, who are specialists in their particular fields, and not to a few general examiners in the office of the Commission. The Illinois Civil Service Commission, and the Commissions in other states, have secured the cooperation of such specialists in examining applicants for a few of the more impor- tant positions, but there is need for a further extension of the use of expert examiners. Written examinations are not in all cases suf- ficient to test the practical knowledge of candidates and should be supplemented by oral tests, and by a paper upon some special topic ' which will test the ability of the applicant to apply his knowledge, and by weighing the experience of the several applicants. After a person has once entered the state employ it is possible to test efficiency in a more definite manner. Much good may also result from the duty imposed upon the State Civil Service Commission "to investigate the efficiency of all officers and employes and of all groups of officers and employes in the classi- fied service." Relation of State to Local Commissions. The fact that the Illinois Civil Service laws have grown up in piece-meal fashion doubtless accounts in part for the lack of coordina- tion between them. A State Commission and several local commis- sions have been established tmder these laws. The relations between these commissions, however, have not been defined, and the commis- sions are entirely separate and distinct. There would seem to be no adequate reason why the laws should not be revised so as to bring about the consolidation of the various Commissions in Cook County — county, city and park — into one commission having powers similar in a general way to those now exercised by the separate Commissions. A simple consolidation of local commissions would not, however, entirely remedy the faults of the present system. Some degree of supervision should be exercised over the local commissions by the state commission, for the sake of uniformity and efficiency of administra- tion. Some provisions of the New York law might point the way to the character of supervision which should be exercised over the local by the state commission. The rules adopted by the local commissions might be subject to the approval of the State commission. The ap- pointment of members of local commissions might be made subject to the approval of the state commission; and the former might be sub- ject to removal on charges and after a hearing by the central body. The strong sentiment in Illinois in favor of home rule would oppose any attempt at placing the local administration of Civil Service laws entirely in the control of the State Commission as in Massachu- setts. But there should be no serious objection to the adoption of the New Jersey provision, whereby any city may by popular vote adopt the state law, as an alternative to the adoption of the law providing for local commissions.^* A similar plan might well be adopted with respect to counties. The creation of separate local commissions for each of the cities or counties in the state will lead to an unnecessary multiplication of machinery and additional expense, which can be avoided by coming under the jurisdiction of the State Commission. At the same time the larger cities which can more easily maintain a local commission may well continue under the present system. For Cook County there is now a Civil Service law. The other larger counties might well be given the opportunity either to adopt an op- tional law administered by themselves or to come under the State Commission. . Under an Optional Act of 1903, a number of cities have adopted Civil Service rules for their police and fire departments, and have ap- pointed boards of police and fire commissioners. As enacted, the po- lice and fire commissioners' act provided that from the orders of the city boards created thereby, appeals might be taken to the circuit court by any interested person. This provision for appeal was declared unconstitutional in the case of City of Aurora v. Schoeberlein, (230, 111., 496, 1907) ; and since that time there has been no supervision over these local boards. Some supervision over these bodies should be conferred upon the State Civil Service Commission. ^*In the 45th General Assembly a bill was introduced by Senator Logan Hay to permit cities to adopt the law in force in Chicago, to be enforced through the State M>mmi8gioii. See Second Annual Report of the Illinois Civil Service Commission, p. Et . »■ 938 EFFICIENCY AND ECONOMY COMMITTEE. The supervision of local commissions and direct administration by the State Commission will not only lead to greater harmony in the operation of the Civil Service laws, but will also reduce the in- fluence of local factors opposed to the vigorous enforcement of the merit system, and thus lead to greater economy and efficiency in the local services. A REPORT ON THE SECRETARY OF STATE AND LAW OFFICERS _ii J I. II. CONTENTS THE SECRETARY OF STATE 943-952 Keeper of Records 943 Custodian of Buildings and Grounds 943 Furniture and Supplies 944 Elections 944 Supervision of Corporations 945 Automobile Department 945 Miscellaneous Functions 946 Ex-Officio Boards and Offices 947 Appropriations, 1913 947 Ex-Officio Boards 950 Election Boards 950 Comments and Suggestions 951 LAW OFFICERS 953-970 The Attorney General 953 Auditor of Public Accounts 955 Attorneys in other State Offices 956 Counsel to State Public Utilities Commission 956 Attorney for the Insurance Department 956 Attorney to the Factory Inspection Department 956 Attorney to the Food Commissioner 956 Aitotney to the State Board of Health 957 Opinion of the Attorney General on Special Attorneys 957 Supervision of Local Attorneys 960 The United States Department of Justice 968 Comments and Suggestions 969 Commissioners of Uniform Laws 970 ira I. THE SECRETARY OF STATE The Secretary of State is provided for by the State Constitution as one of the officers of the executive department, elected at the same time as the Governor, for a term of four years. By statute he is required to give bonds for $100,000, to be approved by the Governor and two justices of the Supreme Court, for the faithful discharge of the duties of his office. He receives a salary of $7,500 a year. Constitutional provisions deal v^ith some of the powers and duties of the Secretary of State: The election returns for officers of the executive department must be transmitted to the Secretary of State, directed to the Speaker of the House of Representatives. The Secre- tary of State is required to call the House of Representatives to order at the opening of each new assembly, and preside over it until a temporary presiding officer has been chosen and has taken his seat. The Great Seal of the State shall be kept by the Secretary of State and used by him officially as directed by law. But most of the functions performed by the Secretary of State are authorized by the statute, — some in the Act dealing with the Secretary of State and others in many other Acts. These cover a wide variety of different matters, while in many affairs the functions of the Secretary of State are closely related to those of other officers and boards. The various services as performed by the Secretary of State may be classified as follows : Keeper of Records. All public acts, laws, and resolutions passed by the General Assembly must be deposited in the office of the Secretary of State; who is charged with the safe keeping of the office and of all laws, acts, resolutions, bonds, papers, and records deposited therein. At the close of each session of the General Assembly the Secretary of the Senate and Clerk of the House of Representatives must deliver to the Secretary of State all books, bills, documents, and papers and the Secretary of State is required to preserve them in his office. It is the duty of the Secretary of State to keep a fair register of all the official acts of the Governor and to furnish a certified copy when required to either house of the General Assembly; to counter- sign and affix the seal of the State to all commissions required by law to be issued by the Governor and to keep a register of such com- missions; to make and keep proper indexes to the executive records and all public Acts, resolutions, papers, and documents in his office; and to give certified copies of any law. Act, resolution, or record in his office to any person on paying the lawful fees. Custodian of Buildings and Grounds, It is his duty to take charge of and preserve from waste and keep m repair the houses, lots, grounds, and appurtenances in the city of 944 EFFICIENCY AND ECONOMY COMMITTEE. SECRETARY OF STATE. 945 Springfield and belonging to or occupied by the State, the care of which is not otherwise provided for by law. The Secretary of State and State Treasurer are authorized and required to employ watchmen to guard and preserve from fire the public buildings in the city of Springfield. A Superintendent of Buildings and Grounds and a force of jani- tors, policemen, and other employees in tlie State Capitol are provided for in the appropriations for the Secretary of State. In addition there are nine watchmen provided for in the appropriations for the State Treasurer; eleven janitors are provided for in the appropriations for the several bureaus having offices in the State Capitol; and a separate force of janitors for the Supreme Court building is provided for in the appropriation for the Supreme Court and the Attorney General. Furniture and Supplies. It is his duty to take charge of the furniture of the two houses of the General Assembly, and to take charge of and keep in repair and replenish the furniture of the State House, except as otherwise provided. He is also required to receive and take charge of all fuel, stationery and printing paper furnished for the use of the State; to furnish fuel and stationery from the stores in his possession to the General Assembly and to the several State officers ; to furnish printing paper for public printing to the public printer, to supervise the printing and distribution of the laws, journals, reports and public documents; to examine and approve bills for printing; and to keep an accurate account of fuel, stationery and printing furnished to the State, and to the officers, general assembly or contractors. These duties in regard to fuel, stationery and printing are closely related to the work of the State Board of Contracts, of which the Secretary of State is a member, and of the Printer Expert. Appropriations are made to the Secretary of State for four ship- ping clerks, two supply clerks and two messengers in the Supply Department. Elections. Under the primary election and election laws many duties are imposed on the Secretary of State. He receives primary petitions from primary candidates for State offices and applications for with- drawal, and certifies the names of primary candidates to the county clerks ; he serves on the State primary canvassing board, issues certifi- cates of nomination to successful candidates for State offices, publishes a certified statement of primary election results, and receives notice of primary election contests for State offices. He receives nominating petitions for State offices and requests for withdrawal ; he serves on the board to hear objections to nominating petitions; and he certifies to the county clerks all nominations for State offices, publishes pro- posed constitutional amendments, submits questions of public policy petitioned for by ten per cent of the voters, and prepares and certi- fies to the county clerks' statements as to proposed constitutional amendments and questions of public policy. Abstracts of votes for State officers, members of Congress, mem- bers of the General Assembly, constitutional amendments and ques- tions of public policy are sent to the Secretary of State who serves on the State Canvassing Board, and decides by lot in case of a tie vote for certain offices. He also receives notices and depositions relating to contests for seats in the General Assembly, and sends them to the proper house. He is a member of the board of voting machine commissioners. After an election on a proposition to unite two or more counties, certified copies of the vote are sent to the Secretary of State; and if a majority of the vote is in favor thereof, the Secretary notifies the Governor, who issues a proclamation announcing and declaring the result. Supervision of Corporations. Under the laws for the organization and regulation of corporations, the Secretary of State is charged with, supervising the organization of most classes of corporations, and the admission of foreign cor- porations ; and he has a limited superviiion over general corporations not subject to any other State officer or board. The control over the organization and admission of corporations includes, in addition to general corporations, also title guarantee companies, trust companies, farmers' societies, railways, educational and religious corporations, cemetery associations and cooperative associations. The character and extent of this supervision over corporations is discussed in another section of this report. In connection with the issue of corporation charters and certifificates, annual reports, and anti-trust affidavits, the Secretary of State receives a large amount in fees, — $1,125,832 for the two years ending September 30th, 1914. Automobile Department. An Act to regulate the speed of automobiles was passed by the General Assembly in 1903. This was replaced in 1907 by an Act for the registration of motor vehicles and for regulating their use and speed. In 1911, another Act relating to motor vehicles was passed, repealing the Act of 1907. Under the present law, every owner of a motor vehicle is required to register with the Secretary of State and to pay a regis- tration fee for each calendar year ranging from $2.00 for each motor bicycle to $10.00 for each motor vehicle of more than 50 horse power. The Secretary of State issues and supplies each owner paying the fee a certificate of registration, a seal with the registration number and number plates to be attached to the vehicle. The Secretary of State is required to keep a record of the motor vehicles registered, and at the end of each month, but December, to print and mail to the county clerk a complete list of all vehicles registered with the names of the owners. The Secretary of State also has charge of the examination and licensing of chauffeurs to operate motor vehicles. Applications are made to the Secretary of State, accompanied by a fee of $5.00; and 946 EFFICIENCY AND ECONOMY COMMITTEE. SECRETARY OF STATE. 947 % the Secretary of State appoints, examines, holds examinations and issues licenses and metal badges to those who pass. Licenses are renewed annually on payment of a fee of $3.00; and no person may operate a motor vehicle on a public highway without a license. All moneys received from these registration and license fees, less certain expenses, are required to be set apart as a special Road Fund in the State Treasury ; and these now form an important source of revenue. The expenses collected with the collection of these fees appear to be paid out of the general revenue fund; and these amount to a large proportion of the revenue. The receipts and expenses for the last two biennial periods are shown below : Receipts into State Treasury. Expenses. October 1, 1910 to September 30, 1912 $ 401,162.22 $ 95,494.31 October 1, 1912 to September 30, 1914 1,182,400.11 213,929.37 The clerical force connected with the automobile department is not large; but the expenses for supplies and transportation charges come to a considerable amount. Most of the appropriations made for these purposes in 1911 had been exhausted by September 30 ,1912, and emergency and deficiency appropriations were made in 1913 for $104,- 703.83, in addition to appropriations of $215,000 for the two succeed- ing hscal years. The expense for administering these automobile fees is thus about twenty per cent of the amount collected. In most of the American states the registration of motor vehicles and licensing of chauffeurs is placed in charge of the Secretary of State, as in New York, Ohio, Indiana, Michigan, Missouri, Oregon and Connecticut. In New Jersey there is a department of Motor Vehicle Registration and Regulation in connection with the department of state; and the Assistant Secretary' of State is ex officio Commis- sioner of Motor Vehicles. A few states have placed this work in other hands. In Massa- chusetts, Pennsylvania and California it is in charge of the State Highway authorities. In California applications and fees are sent to the State Treasurer, who notifies the department of engineering. In Maryland there is a commissioner of motor vehicles appointed by the Governor. Miscellaneous Functions. Under the Weights and Measures Act (revised in 1913), the Secretary of State is ex officio State sealer of Weights and Measures and has the care and custody of the authorized public standards of weights and measures. He is required to try and prove by such stan- dards any weights and measures belonging to any county, city or other municipal corporation sent to him by the county or municipal sealer of weights and measures; and to execute and deliver certificates that such weights and measures are accurate. By an Act of 1911 to regulate and prevent frauds in sales by itinerant venders, such venders are required to deposit $500 with the Secretary of State and to pay $25.00 as a fee for a State license for one year to be issued by the Secretary of State. The deposit is to be held for 60 days after the expiration or cancellation of the license, subject to attachment on behalf of creditors. The Secretary of State also records trade-marks; and he issues instructions and forms to commissioners of deeds, and certificates of magistry to notary publics. Ex Officio Boards and Offices. The Secretary of State is ex officio a member of the following boards : Board of Commissioners of State Contracts, Primary Canvassing Board, Board to hear objections to nominating petitions. State Canvassing Board, Board of Voting Machine Commissioners, Board of Commissioners of. the State Library, — also State Librarian, Board of Trustees of the National History Museum, Board of Trustees of the Lincoln Homestead, Board of Trustees of Fort Massac. APPROPRIATIONS FOR THE SECRETARY OF STATE, 1913-15. No. of Salaries Expenses Totals Empl. per annum per annum Two Years Secretary of State $ 7,500.00 $ $ 15,000.00 General Expenses. Chief Clerk and Assistant 2 $ 6,600.00 $ 13,200.00 Executive Clerks 2 3,300.00 6,600.00 Index Clerks 4 6,100.00 12,200.00 Clerks 3 2,700.00 5,400.00 Private Secretary 1 2,100.00 4,200.00 Stenographers 11 18,480.00 24,960.00 Bookkeeper 1 2,000.00 4,000.00 Porters and Messengers 3 2,700.00 5,400.00 Extra Clerk Hire 1,500.00 3,000.00 Office 5.000.00 10,000.00 Postage (emergency) 3,000.00 Incidentals 5,000.00 10,000.00 Blue Book 2,000.00 27 $45,480.00 $10,000.00 $103,960.00 Buildings and Grounds. Superintendent and Assistant 2 $4,300.00 $ $ 8,600.00 Carpenters 2 2,000.00 4,000.00 Policemen 6 4,800.00 9,600.00 Elevator Conductors 4 3,600.00 7,200.00 Janitors 11 8,800.00 17,600.00 Flagman 1 800.00 1,600.00 Engineers 3 4,440.00 8,880.00 Firemen 9 8,100.00 16,200.00 Weigher 1 1,000.00 2,000.00 Electricians 4 5,200.00 10,400.00 Helper 1 900.00 1,800.00 Heating and Lighting 13,000.00 26,000.00 Emergency 5,000.00 Repairing State House 1,000.00 2,000.00 Flags 200.00 Elevators and Toilets 30,000.00 44 $43,940.00 $14,000.00 $151,080.00 948 EFFICIENCY AND ECONOMY COMMITTEE. Supply Department. * ♦ Supply Clerks 2 $ 3,900.00 Messengers 2 1,800.00 ^... ' 4 $5,700.00 b hipping Department. Shipping Clerks 4 $ 6,720.00 No. of Salaries Expenses Empl. per annum per annum Corporation Department. Clerks 4 $ 7,200.00 $ Anti-Trust Clerks 5 7,300.00 Expenses 1,500.00 Foreign Corp. Investigators (emergency) — * 9 $14,500.00 $ 1,500.00 Automobile Department. Clerks 4 $4,640.00 $ Investigators 3 3,6(X).00 Extra Clerk Hire 2,500.00 Clerks (emergency) Numbers and Tags 75,000.00 Traveling Expense 1,800.00 Freight and Parcel Post 20,000.00 Freight and Parcel Post (emrgcy) Deficiency and Exp. (emergency) 7 $10,740.00 $96,800.00 Chicago Office. Deputy 1 $2,250.00 $ Examiner 1 1,500.00 Stenographer and Clerk 1 1,000.00 Rent 1,200.00 Light and Telephone 200.00 Typewriter and Adding Machine. 3 $ 4,750.00 $ 1,400.00 No. of Salaries Expenses Empl. per annum per annum State Library. Librarian 6 $ 6,400.00 $ Janitor 1 900.00 For Purchase of Books and Ex- penses 2,000.00 Postage 200.00 Tools, etc 200.00 Shelving and Furniture 7 $ 7,300.00 $ 2,400.00 Library Extension Commission. Organizer 1 $1,200.00 $ Asst. Librarian 1 900.00 Stenographer 1 720.00 Extra Help 150.00 Traveling Expenses 600.00 Expenses of Commissions 3 $ 2,970.00 $ 600.00 $ 7,800.00 3,600.00 $ 11,400.00 $ 13,240.00 Totals Two Years $ 14,400.00 14,600.00 3,000.00 1,000.00 $ 33,000.00 $ 9,280.00 7,200.00 5,000.00 2,500.00 150,000.00 3,600.00 40,000.00 15,000.00 87.203.83 $319,783.83 $ 4,500.00 3,000.00 2,000.00 2»400.00 400.00 1,000.00 $ 13,300.00 Totals Two Years $ 12,800.00 1,800.00 4,000.00 400.00 400.00 1,000.00 $ 20,400.00 $ 2,400.00 1,800.00 1,440.00 300.00 1,200.00 1.700.00 $ 8,840.00 SECRETARY OF STATE. 949 Museum of Natural History. ^""■f^""/"; 1 $3,000.00 $ $6,000.00 .\sst. Curator i i^200.00 ^ 2400.00 •Ji'"^ r : e ^ I'OOO-^ 2,000.00 Catalogers, Carpenters, Stenog- ^^^P^^" 600.00 1,200.00 (jeneral Expense 2 000 00 Books and Specimens ..'.':;.. i^qOO.OO 2,'oOO.OO Purchase and Repair of Cases. .. . 500.00 lioOO.OO 3 $ 5,800.00 $ 1,500.00 $ 16,600.00 Lincoln Home. ^"^todian 1 $1,500.00 $ $ 3,000.00 Improvements and Repairs 300.OO 600.00 Heating and Lighting 350.00 700.OO Incidental Expenses 300.OO 600.00 1 $ 1,500.00 $ 950.00 $ 4,900.00 Vort Massac Trustees. Custodian i $ 600.00 $ $ 1,200.00 Care and Improvement 2,500.00 5,000.00 Extension of Retaining Walls 1,500.00 1 $ 600.00 $ 2,500.00 $ 7,700.00 Total Number Salaries Appropriation of per annum Two Years Employes Summary. The Secretary of State $ 7,500.00 $ 15,000.00 General Expenses 39,480.00 103,960.00 27 Building and Grounds 43,940.00 151,080.00 44 Supply Department 5,700.00 11,400.00 4 Shipping Department 6,720.00 13,240.00 4 Corporation Department 14,500.00 33,000.00 9 Automobile Department 10,740.00 319,783.83 7 Chicago Office 4,750.00 13,300.00 3 $133,330.00 $660,763.83 98 ^State Library $ 7,300.00 $ 20,400.00 7 Library Extension Commission 2,970.00 8,840.00 3 Museum of Natural History 5,800.00 16,600.00 3 • Lincoln Home 1,500.00 4,900.00 1 Fort Massac Trustees 600.00 7,700.00 1 $ 18,170.00 $ 58,440.00 16 Emergency Appropriations, igis. General Expenses— Postage $ 3,000.00 Buildings and Grounds — Heating and Lighting 5,000.00 Corporation Department — Investigators 1,000.00 Automobile Department— Clerks 2,500.00 Automobile Department — Freight and Par- cel Post 15,000.00 Automobile Department — Deficiency and Expenses 87,203.83 $113,703.83 950 EFFICIENCY AND ECONOMY COMMITTEE. EX OFFICIO BOARDS. SECRETARY OF STATE. 951 X X X X X X X X Gov. Lieut. Gov. Secy. Auditor Treas- Atty. Supt. Pres. of urer Gen. Pub. St. State instr. Board Commissioners of State ^^' Contracts State Canvassing Board. Primary Canvassing _Board XXX Board on Objections to * Nominations x x x x Commissioners of State Library x x x Trustees National His- tory Museum x x x Trustees Lincoln Home- stead X X X X X Trustees Lincoln Monu- ^ment x * x x Fort Massac Trustees... x x x Commissioners of the Department of Justice. x x x x x x ELECTION BOARDS. The board of voting machine commissioners, established in 1903, consists of the Secretary of State and two persons who must be mechanical experts and not members of the same political party, appointed by the Governor for a term of four years, but removable at his pleasure. The board examines and reports on the accuracy, efficiency, capacity and safety of voting machines ; and voting machines not approved by this board cannot be used at any election. Each of the mechanical experts is entitled to $100 for his compensation and expenses in making such examination and report, to be paid by the persons or corporation applying for such examination. The State Primary Canvassing Board consists of the Governor, Secretary of State and State Treasurer. This board canvasses the returns of primary elections for State officers and decides tie votes by lot; it makes proclamation of the results of primary elections for State offices and files certificates of nominations in the office of the Secretary of State. Objections as to certificates of nomination and as to nomination papers in the case of State officers are considered by the Secretary of State, the Auditor and the Attorney General; and a decision of a majority of these officers is final. What is commonly known as the State Canvassing Board, con- sists of the Secretary of State, Auditor, Treasurer and Attorney* General, or any two of them in the presence of the Governor. This body canvasses the vote for United States Senators and members of Congress, Judges and Clerk of the Supreme Court, Judges of the Circuit Court, Senators and Representatives to the General Assembly, members of the State Board of Equalization and trustees of the University of Illinois. It is difficult to explain on any rational bases the existence of these several boards for election purposes. The statutes and admin- istrative machinery would be simplified by placing the several func- tions in the hands of one State board of elections, to pass on voting machines and objections to nominations, and to canvass the returns for both primary and final elections. This board should include the Governor, Secretary of State and Attorney General. Provision could be made for appointing mechanical experts to report on voting machines to the State board of elections. COMMENTS AND SUGGESTIONS. The powers and duties of the Secretary of State in Illinois form a heterogenous group of functions not closely related to each other. Many of these matters have no necessary connection with the office of Secretary of State, and instances may be found in other states where most of his functions, except that of keeper of certain official records, is given to some other officer or board. In Illinois the powers of the Secretary of State, in some matters partially under his control, are limited by the authority of other officers and boards, such as the commissioners of contracts and the printer expert. Some of the functions of the Secretary of State are closely re- lated to those of other independent officers and boards; and have been considered in other reports prepared for the Efficiency and Economy Committee. In a general re-organization of the state service such positions might well be transferred from the Secretary of State and associated with other authorities dealing with the same general sub- ject. Thus the supervision over corporations could be combined with the supervision over banks, insurance companies and public utilities, in a Department of Trade and Commerce as proposed in another part of this survey. So too, the registration of motor vehicles and licensing of chauffeurs and the collection of fees is largely a revenue matter and might well be organized in the proposed department of Finance. The functions of the Printer Expert should be increased, so that he could exercise full control over public printing and binding in addi- tion to the present technical duties. This work should further be com- bined with that of a purchasing agent for stationery and office sup- plies ; and the title of the office changed to that of Superintendent of Printing. The printing and supplies for each office should also be charged to such office ; though a record should also be kept of the total amount expended by all offices for such purposes. The State Board of Contracts should be abolished ; and contracts for printing, binding and office supplies should be made by the Super- intendent of Printing, subject to the approval of the proposed State Comptroller, and also of the Governor as required by the Constitution. Such contracts should include more nearly than at present all of such supplies for the various State officers and boards. The Superintendent of Buildings and Grounds should be appointed by the Governor; he should have supervision over all state buildings and grounds in Springfield, including the Capitol, Supreme Court Building, the Armory, the Executive Mansion, and the Lincoln Home and Lincoln Monument. The several election boards should be consolidated into one elec- mi 952 EFFICIENCY AND ECONOMY COMMITTEE. 1 II 1 ! I tion board, consisting of the Governor, Secretary of State and Attor- ney-General. If the Secretary of State were made, as he should be, an officer appointed by the Governor, the loss of some of his present functions could be offset by the transfer to his department of other services and by givmg this department more complete control over some matters, over which it has now only a partial control. Thus the Secretary of State, in addition to his primar}^ function as Keeper of Records, could continue his duties in relation to elections; and the Superintendent of Buildmgs and Grounds, the Superintendent of Printing, and the Civil Service Commission could appropriately be attached to this depart- ment. While this would not make a coherent department of closely related functions, it would make a department of some importance, uniting a number of services not easily assignable to other departments! This plan, however, involves an amendment of the state constitu- tion as to the method of selecting the Secretary of State. Under the existing provisions, the concentration of responsibility can best be secured by placing the Superintendent of Buildings under the proposed department of Public Works, and by making the Superintendent of Printing directly responsible to the Governor. It may be noted that the investigators for the Committee on Re- trenchment and Reform of the Iowa General Assembly have recom- mended in their plan for reorganizing the state administration that the duties of the Secretary of State as Keeper of the Seal and records be combined with those of the Attorney-General, in one department. II. LAW OFFICERS. THE ATTORNEY-GENERAL. Statutes of the Territory of Illinois prescribed duties for the Attorney for the Territory, but did not create the office of Attorney- General. An Act of the first General Assembly of the State, in 1819, provided for the duties of the Attorney-General ; to be elected by the General Assembly for a term of two years. From time to time other Acts were passed relating to this office. The Constitution of 1848 made elective the previously existing state officers, except the Attorney-General, for whom no provision was made, and the office was discontinued. By Act of 1867, the office of Attorney-General was again created, to be filled first by appoint- ment by the Governor, for a term of two years, and afterwards to be elected by popular vote. The Constitution of 1870 names the Attorney-General as one of the officers of the executive department, to be elected by popular vote for a term of four years. Vacancies are filled by the appointment of the Governor. Before entering on the duties of his office, the Attorney-General is commissioned by the Governor, takes an oath or affirmation, and must execute a bond of $10,000 for the faithful discharge of the duties of the office. He receives a salary of $10,000 a year. The duties of the Attorney-General are defined by statute. His general duties are provided in an Act of 1874 in regard to the Attorney- General and State's Attorneys ; while other specific powers and duties are provided in various laws. His principal functions may be classi- fied under two main divisions — as attorney for the State and State Officers in proceedings before the courts; and as legal advisor to the Governor, other State Officers and the General Assembly. Attorney for the State and State Officers. In the first capacity, it is his duty: To appear for and represent the People of the State before the Supreme Court, in all cases in which the State or the People of the State are interested. To institute and prosecute all actions and proceedings in favor or for the use of the State which may be necessary in the execution of the duties of any State officer. To defend all actions and proceedings against any State officer in his official capacity, in any of the courts of this State or of the United States. To consult with and advise the several State's Attorneys in matters relating to the duties of their office; and when in his judgment the interest of the People of the State requires it, he shall attend the trial of any person accused of crime and assist in the prosecution. To enforce the proper applicaton of funds appropriated to the public mstitutions of the State, prosecute breaches of trust in the administration of such funds, and, when necessaiy, prosecute corporations for failure or refusal to make the reports required by law. 954 EFFICIENCY AND ECONOMY COMMITTEE. Legal Advisor. As legal advisor, it is his duty : To consult with and advise the Governor and other State officers, and give, when requested, written opinions upon all legal or constitutional ques- tions relating to the duties of such officers respectively. To prepare, when necessary, proper drafts for contracts and other writings relating to subjects in which the State is interested. To give written opinions, when requested by either branch of the General Assembly, or any committee thereof, upon constitutional or legal questions. Other General Duties. It is also the duty of the Attorney-General : To keep in proper books a register of all cases prosecuted or defended by him, in behalf of the State or its officers, and of all proceedings had in relation thereto, and to deliver the same to his successor in office. To keep in his office a book in which he shall record all official opinions given by him during his term of office, which book shall be by him delivered to his successor in office. To pay into the State Treasury all moneys received by him for the use of the State. To attend to and perform any other duty which may from time to time be required of him by law. Specific Duties. A number of statutes provide specifically for action by the Attorney- General for their enforcement ; though in some cases these provisions add little or nothing to his duties as prescribed in general. Quo Warranto Proceedings. It is the duty of the Attorney-General to file any information in the nature of a quo warranto against any person holding office illegally and against any corporation holding or exercising any franchise or license in violation to law. Against Corporations. More specifically it is the duty of the Attorney-General to institute proceedings for the dissolution of corporations which have ceased to act, and for the dissolution of insolvent homestead loan associations, to bring actions against foreign corporations for violations of the law, and to proceed against violations of the anti-trust Act. Other Laws. The Attorney- General is authorized to institute prosecutions for vio- lations of the civil service laws and the law regulating the sale of fer- tilizers. Court of Claims. It is his duty to represent the State in cases before the court of claims. Inheritance Tax. Under the amendment of 1913 to the Inheritance Tax Law, it is made the duty of the Attorney-General to exercise general supervision over the assessment and collection of the inheritance tax, with the authority to apply to the county court for the appointment of appraisers and to appeal from any appraisement or assessment. Provision is also made in the appropriation Act for an Assistant Attorney-General and other assistants and clerks in the inheritance tax office in Cook County, and for assistant investigators and expenses in collecting inheritance tax outside of Cook County. LAW OFFICERS. 955 The following statement gives the expenses of the Attorney-Gen- eral s office, as shown by the warrants drawn for the two years 1910-12 and the appropriations made in 1911 and 1913. Warrants Appropri- Appropri- Drawn ations ations ^ , 1910-12 1911 1913 Attorney-General $ 20,833.34 $ 20,000.00 $ 20,000.00 Chief Assistant ) , ^ i c o(v\ (v\ Other Assistants \\ 45,375.00 48,000.00 53;555:55 Brief Maker, Stenographers and Clerks 28,415.00 32,000.00 42,200.00 Total Salaries $94,623.34 $100,000.00 $130,200.00 Office Expenses $ 11,391.71 $ 14,000.00 $ 16,000.00 I C Suits 8,953.85 73,464.47 136,615.20a U.S. Courts.. 21,120.76 48,000.00 35,000.00 Submerged Land Iny. . 8,007.59 25,000.00 38,548.01b Economy Light and Power Company ^Suit •••••••v---; 9,008.12 40,000.00 1 ax on Idaho Lands 4 513 25 Attorneys and Expenses 30,000.00 $183,105.37 $304,977.72 $356,363.21 Inheritance Tax Office. Assistant Income Tax Attorneys $ 7,800.00 $ 9,600.00 $33,000.00 Clerks and Stenographers 11,550.00 15,600.00 . 20,40000 Rent and Expenses 6,958.59 10,300.00 10,290.00 Special Investigation 6,719.22 12,000.00 16,000.00 Furniture 1,078.97 1,600.00 3,000.00 , ^ . ^ . . $ 34,106.78 $ 49,100.00 $ 82,690.00 Inheritance Tax Investigation Outside of Cook County $20,000.00 . Courts — Expenses, Disbarment Proceed- ceedinigs 4,000.00 'Totals $217,212.15 $354,077.72 $463,053.21 a|36,615.20 re-appropriated. b|ll,048.11 re-appropriated. Auditor of Public Accounts. Section 15 of the Act in relation to the Auditor of Public Accounts provides that : "The Auditor shall be deemed the proper officer to institute all suits, motions and other proceedings in law and equity, m which the State is plaintiff except in cases otherwise provided by law." This provision has come down from the Revised Statutes of 1845 ; and is perhaps a survival of the period when the office of At- torney-General was discontinued. This provision now seems to be practically a dead letter, so far as any active exercise of the power by the Auditor is concerned. For many years an appropriation of $500 a year has been regularly made to the Auditor "for costs and expenses of state suits;" but for twenty years this appropriation has usually lapsed. The appropriation made in 1893 was nearly all expended; but smce then the only payments have been as follows : Warrant Drav^^n Unexpended 1898-1900 $56.08 $944.00 1902-1904 2.00 99800 1906-1908 58.04 941.96 -'■'^ys - 956 EFFICIENCY AND ECONOMY COMMITTEE. ATTORNEYS IN OTHER STATE OFFICES. i' I I While the Attorney-General is the official legal advisor to all state officers, and is charged with a general responsibiilty for the enforce- ment of all state laws, in a number of instances provision has been made in the laws or appropriations for certain state offices for attor- neys or legal services not connected with the Attorney- General's office. Thus there is a Counsel to the Public Utilities Commission, and there are attorneys for the Insurance Department, the Factory Inspection Department and the State Food Commissioner. Counsel to State Public Utilities Commission. The Public Utilities Law provides that the commission shall ap- point as counsel to the commission an attorney at law of the State of Illinois, who shall hold office at the pleasure of the commission. The counsel to .the commission has power, subject to the approval of the commission, to appoint and at pleasure remove attorneys at law to assist him in the performance of his duties. Attorney for the Insurance Department. The Act creating the Insurance Department provides that the In- surance Superintendent shall have all the powers and may perform all the duties in regard to the business of insurance formerly attached to the office of Auditor of Public Accounts and the Attorney- General. He is to exercise the same control over insurance companies, and may institute and prosecute in his name all suits and all things formerly required to be done by the Auditor of Public Accounts or Attorney- General ; and the said Auditor of Public Accounts and Attorney-Gen- eral are relieved from any duty in relation thereto. Another section of the bill provides that the Insurance Superin- tendent, whenever he deems it necessary, may call upon the Attorney- General of the State for legal counsel and such assistance as may be required to enforce the provisions of the law. Under this section, the Attorney-General might be called on to act as legal advisor for the department ; but in practice the Insurance Superintendent has not asked his assistance. An appropriation of $4,000 a year is made to the Insurance Department for legal services; and this is used to pay the salary of an attorney appointed for the department. Attorney to the Factory Inspection Department. Under the Act of 1907 for the department of factory inspection, the Governor is required to appoint an Attorney for said department, at a salary of $1,500 per annum. It is the duty of the Attorney for such department to prosecute, when requested by the Chief Fac- tory Inspector, any infractions or violations of law which is now or may be hereafter made the duty of the Factory Inspector to enforce. In practice the Attorney handles prosecutions in Chicago ; and outside of that city prosecutions are managed by the inspectors, either alone or with the assistance of the State's Attorneys. Attorney to the Food Commissioner. The Food and Drugs Act provides for an Attorney to be appointed by the Food Commissioner, with the advice and consent of the Gov- LAW OFFICERS. 957 ernor, at a salary of $1,800 per annum and expenses incurred in the discharge of his official duties. Attorney to the State Board of Health. The appropriation bill for the State Board of Health makes an appropriation of $2,500 per annum for services of Attorney, and $900 for a law clerk. The State Civil Service Law provides that prosecutions for viola- tions of the Act may be instituted by the Attorney-General, by a State's Attorney or by the commission acting through special counsel. SALARIES AND APPROPRIATIONS FOR ATTORNEYS AND LEGAL SERVICES. Auditor of Public Accounts, State Suits $ 500 Public Utilities Commission 19,000 Insurance Department ..*.!...!!!!!!!!.!!!!!!!! 7^000 Factory Inspection Department *..'...*.'...*..'.*.*! .* .* .' .* .* !!!.*!! ! .* l^SOO Food Commissioner 2*300 State Board of Health ..WW ........ ...\\... ..,...'..'. . 2,500 Rivers and Lakes Commission .'...* l^SOO $34,600 OPINIONS OF ATTORNEY-GENERAL ON SPECIAL ATTORNEYS. In 1901 Attorney-General Hamlin rendered to the Auditor of Public Accounts an opinion on the practice of employing special at- torneys by the separate state departments and offices. This practice was at that time more common than at present. In this opinion it was pointed out that it is the duty of the Attorney-General— both at com- mon law and by statute — to represent the several departments of the State in all matters where the State or the People are interested ; and as no necessity exists for the employment of special attorneys by the several departments, unless there is some statutory provision authoriz- ing such employment the power does not exist. Special consideration was given to the situation in respect to the canal commissioners, the railroad and warehouse commissioners and the insurance superin- tendent; and it was held that in the latter case there was statutory authority authorizing the employment of special attorneys, though the constitutionality of this provision was doubtful.^ Following this opinion, the practice of employing special attorneys without statutory authority was largely discontinued. In his report for 1907-08, Attorney-General Stead referred to the opinion of At- torney-General Hamlin, in which he concurred ; and called attention to the statutory provisions for special attorneys for the State Food Com- missioner and Chief Factory Inspector. These provisions he considered of doubtful constitutionality, and it was urged that such provision must "result in conflict and disorder in the practice of the State's legal business."^ These opinions are endorsed by Attorney-General P. J. Lucey, in the following letter to the Efficiency and Economy Committee : ]^R«port of th* Attorn«7-G«n«ral, 1901-12, pp. 7, 891,404. 'Report of the Attorney-General, 1907-08, p. ix. li 958 EFFICIENCY AND ECONOMY COMMITTEE. LAW OFFICERS. 959 October 6th, 1914. To the Efficiency and Economy Committee, State of Illinois. Gentlemen : As requested by you, I herewith submit in writing some recom- mendations relative to the right of the various State boards, commis- sions and departments to employ or be provided with special counsel, and therein of the right of the Attorney-General's office to represent the State boards, commissions and departments as contemplated by the constitutional provisions creating the Attorney-General's department. In this connection I would refer to an opinion of my predecessor, Honorable H. J. Hamlin, as reported in his opinions for 1901-1902, on page 7 thereof, and referred to again with approval, by Mr. Hamlin, in his report for 1903-1904, on page 10 thereof, to which opinions the Committee is respectfully referred. In the first opinion herein referred to by General Hamlin he sum- marizes the matter as follows, and I cannot express it any better than by quoting his language : In my opinion the Constitution of this State contemplates that the office of Attorney General shall be as broad in its jurisdiction and that the duties belonging to that office shall be as extensive as those belonging to the Attorney General in England at common law. This view was expressed in the opinion rendered to the Auditor of Public Accounts. It is certainly contemplated by the Constitution and the organization and form of government prevailing in the State of Illinois, that the Attorney General shall be the chief law officer of the State, and there is no necessity whatever for the appointment of special attorneys to represent any board, department or trustees of any institution. The practice of appointing special attorneys is not only exceedingly extravagant and expensive, but results in conflict and disorder in the administration of the State's legal business. I would, therefore, recommend that the legislature pass such laws as shall be necessary to dispose of all special attorneys and which will result in placing the business of the State in the hands of the duly elected law officers thereof, where, under the constitution it belongs. Attorney General Stead, in an opinion reported in his opinion for year 1908, on page ix, quoted with approval the previous opinion of General Hamlin and reaffirmed the opinion of General Hamlin that the State boards and commissions were without authority to hire special counsel, and in the last report of General Stead, viz. : report for 1912, on the first page thereof, he expresses his opinion of such special counsel as follows: It will, in my judgment, be an unwise provision, should the legislature, m the creation of additional boards and commissions, or in extending the powers of present boards and commissions, make provision whereby an attorney for such boards and commissions is created an officer of the State Government. Moreover, in view of the expressions of the Supreme Court in passing upon the validity of the civil service act, it may be doubted if the legislature has any power to create an attorney for any of the departments, institutions, or officers of the State Government. I concur in the opinions of my predecessors and believe that At- torney-General Stead's opinion last above quoted is good law, and that the practices which have been followed for many years and acquiesced in by the last Legislature, of creating special counsel for boards and commissions, such as the Public Utilities Commission, and permitting special counsel to other State boards and commissions, such as the Pure Food Commission, the Grain Inspector's office, etc., is wholly without warrant of law. If this practice should be carried to all the State boards and commissions, it would dispense with the duties of the Attorney General's department, a constitutional officer, and as sug- gested in the foregoing by Attorney General Stead, I am of the opinion that the Legislature is without authority to so act. At different times and for special purposes special counsel is re- quired, but such special counsel should only be attached to the Attorney General's department and retained by him and the Attorney General made responsible therefor. At the present moment the attorney for the Insurance Superin- tendent has started one hundred and ten or one hundred and twenty suits in the Circuit Court of Sangamon County, against certain insur- ance companies, not for violation of provisions of the insurance statute, but for violations of the common law, and the Insurance Sup- erintendent, through his special counsel, not the counsel of the Insur- ance Department, but counsel retained by himself, is proceeding to litigate public policy questions which he is wholly without authority, under the statute creating his department, to litigate. I cite this simply as an illustration of the extent to which the different boards and de- partments may go in what they think their rightful province. The total cost of the special counsel retained through the State by the special boards and commissions, I have not had time to ascertain. The Auditor's office will furnish that information to the Committee should it desire to have it in detail. The appropriations for this department are shown in the so-called Omnibus Bill as passed by the last Legisla- ture. This department stands ready to take charge of the legal business required by the State of Illinois, and I will recommend that no ap- propriation be made for special counsel for any board, commission or department in the future. Inheritance Tax Attorneys. The last Legislature saw fit to ap- propriate to this department the sum of $10,000 for collecting the inheritance tax outside of Cook County, and to the Treasurer's depart- ment the sum of $25,000 for like services. Through the co-operation of the State Treasurer, Hon. William Ryan, Jr., these funds were consolidated and the State divided into sixteen districts on the basis of population and the amount of business reasonably to be expected from each division, and attorneys were regularly placed in charge of each district. They average in number of counties from fourteen counties, in charge of Mr. Parish of Carmi, Illinois, to four counties in charge of Mr. Mooney of Joliet, Illinois, which latter counties are the counties of McHenry, Kane, DuPage and Will. This system has worked very satisfactorily and in my opinion has more than justified the expenditure of that money. It has resulted in a regularity in handling inheritance tax matters throughout the State and has promoted the efficiency as well as economy in the conduct of inheritance tax cases. Formerly there was no check on the fees which might be allowed appraisers, or the expense accounts which they niight turn in, but under this system we require the attorney to be present and investigate the services of the appraiser and have been 960 EFFICIENCY AND ECONOMY COMMITTEE. LAW OFFICERS. 961 obliged more than once to threaten an appeal to the court against the charges made or attempted to be made by the appraisers, and in one instance such an appeal was taken, resulting in a settlement on more satisfactory, or I might even say decent terms. On my recommenda- tion, the Legislature passed an act limiting the fees of appraisers to a sum not to exceed fifteen per cent of the tax in any event, thus pre- venting the absorption of a moderate tax as has more than once been the experience in the past. Inasmuch as the services performed by these attorneys are strictly legal services, I am of the opinion that the system should be con- tinued and really might be added to, rather than reduced, and I am satisfied that it is money well invested for the State. The figures for the inheritance tax collected in the past two years and in the preceding years may be had from the Auditor's office and the report of the State Treasurer. I discussed with the Committee when I spoke to them last week, the question of enlarging the authority of the Attorney General rela- tive to the State's attorneys in the State of Illinois. I still think that there is no reason why the law department of the State, namely the Attorney General's department, should not exercise a directory in- fluence over the actions af the State's attorneys throughout the State. The State's attorney is an officer mentioned in the Constitution and his election provided for, but that will not prevent the Legislature from giving the Attorney General supervisory power over the State's attorneys by vesting in him the power of removal for incompetency, misdemeanor, neglect, etc., and further giving to the Attorney General the right of directing the State's attorneys in the conduct of the busi- ness of their office. Should this plan be followed, as I believe it ultimately will, by the Legislature, it will simplify the matter of minor prosecutions now conducted by the several State boards and commis- sions and would give to the Attorney General the right to instruct and order the State's attorney of any county to handle any matter that might be pending in his county. No hardship would thereby be en- tailed upon the State's attorneys as under the present system they are all on salary and not dependent upon fees and commissions for their compensation. I believe this statute would be a desirable one and have the further effect of centralizing authority and fixing respon- sibility. Much might be said in furtherance of the foregoing recom- mendation but I think there is sufficient for the Committee to consider at the present time. Very respectfully, P. J. LUCEY, Attorney General SUPERVISION OF LOCAL ATTORNEYS. November 23, 1914. Efficiency and Economy Committee, State of Illinois. Gentlemen : Inquiry has been made as to the methods adopted by the various states in unifying and supervising the work of the State's Attorneys, and I hereto attach some memoranda taken from the statutes and de- cisions of the various states in regard to this subject and in regard to the power of the Attorney General of the State. I desire to call attention to the manner in which this is achieved in Iowa, and I herewith send you a pamphlet prepared by the Attorney General of Iowa in 1911, entitled "Statutes of Iowa affecting the gen- eral enforcement of the Criminal Laws of the State." The General Assembly of the State of Iowa passed an act in 1909 entitled "Duties of County Attorney." The act consists of two sections— the second section being divided into twelve paragraphs, of which the first, second and eleventh are as follows : 1. To diligently enforce or cause to be enforced in his county, all of the laws of the state, actions for a violation of which may be com- menced or prosecuted in the name of the State of Iowa, or by him as county attorney, except such laws, the enforcement of which is exclusively enjoined upon others by statute. 2. To appear for the state and county in all cases and proceedings in the courts of his county, to which the state or county is a party, and m the supreme court in all cases in which the county is a party. 11. To make reports relating to the duties and the administration of his office to the governor or the attorney general whenever called upon by the governor or the attorney general so to do. At the same time, the General Assembly passed an act entitled, "Removal from Office," consisting of ten sections, the first section of which provides that any county attorney, supervisor, etc., may be re- moved from office by the district court or judge upon charges filed for the causes enumerated, among which are, wilful or habitual neglect or refusal to perform the duties of his office, and also, wilful miscon- duct or maladministration in office. The act further provides that the complaint may be filed on the relation of any five qualified electors of the county or by the county attorney or by the Attorney General, and shall be filed by the Attorney General when directed so to do by the Governor. ALABAMA. The Attorney General must attend, on the part of the state, to all criminal cases in Supreme Court and to all civil cases to which state is a party in same court. Article 5, sec. 635, Code of Alabama. It is the duty of all circuit and county solicitors of city and crim- inal courts to certify to the Attorney General the character, number of cases disposed of, number of convictions, number of acquittals, number of nolle prosequies entered, etc. Criminal Code of Alabama, 7785. Penalty is provided for failure to report, 7786. District attorney is a constitutional officer. ARIZONA. Attorney General must attend the Supreme Court in all cases to which State or State officer, in official capacity, if a party. He must exercise supervisory powers over the county attorneys in all matters pertaining to the duties of their offices, and require re- ports from them as to the condition of public business in their charge. Chapter 1, paragraph 107, State of Arizona. Ki ;, 962 EFFICIENCY AND ECONOMY COMMITTEE. LAW OFFICERS. 963 ill {ill ARKANSAS. If prosecuting attorney prays an appeal the Attorney General on inspecting the same, may file transcript in office of Qerk of Supreme Court. Sec. 2617 of Arkansas Stat. CALIFORNIA. Duty of Attorney General to assist district attorneys in counties when required so to do by public service or by Governor. Article VIII, paragraph 470, clause 7. Exercises supervisory powers over district attorneys in all matters relative to their offices and requires reports of them. Article VIII, paragraph 470, clause 5. COLORADO. Attorney General appears for State in all civil and criminal cases before Supreme Court. CONNECTICUT. Attorney General has general supervisory power over all matters in which State is interested, except those matters over which the prose- cuting attorneys have direction. DELAWARE. Attorney General — No state's attorney. FLORIDA. Attorney General exercises a general superintendence and direc- tion over State's Attorneys as to the manner of discharging their re- spective duties. Chapter 2, Article III, Section 93, Florida Stat. GEORGIA. Duty of Attorney General to represent state in Supreme Court and in all civil and criminal cases in any court when required by the governor. IDAHO. Attorney General exercises supervisory powers over prosecuting attorneys in all matters pertaining to their offices. Chapter 8, sec. 142. Prosecuting attorney is constitutional officer. Sec. 18, article 5, Constitution. INDIANA. Attorney General required to attend to all cases in Supreme Court to which state is a party. Art. 12, section 9269. IOWA. Attorney General must represent state in Supreme Court. Chapter 3, paragraph 208. Section 13 of article 5 of the constitution of Iowa provides: TL'r'isgl .'n/iv?^'^ °^ '^'^ ''r^'K '^^"' ^t the general election in the h. /r^LiX. ^?^,,^^^^ two years thereafter, elect a county attorney who shall be a resident of the county for which he is elected and shall hold office for two years and until his successor shall have been elected and qualified Ihe act of the general assembly of the State of Iowa providing for the removal of county attorneys, among other officers, upon com- plamt filed m the district court by the State's attorney, was held con- stitutional in the case of State v. Henderson, 145 la., 657. However, the question of the right of the attorney general to remove a county attorney in the manner provided in the act was not passed upon by the court. r tr J KANSAS. Attorney General shall consult with and advise county attorneys in matters pertaining to their duties. Art. 7, paragraph 3908. KENTUCKY. Attorney General to appear for State in all cases except where commonwealth attorney is required to appear. Paragraph 4766A1. bounty attorney must assist commonwealth attorney. Paragraph LOUISIANA. Duty of Attorney General to consult and advise district attorneys, bee. 131, Revised Statutes. Duty to appoint district attorneys in certain* cases. Act No. 123, 1906. District attorneys are constitutional officers. Constitution, art. MAINE. Attorney General must attend all trials of persons indicated for treason or murder and give instructions to county attorney when ab- sent. Sec. 60, ch. 79. County attorney must act with Attorney General in all cases. Ch. ol, section 17. MARYLAND. Attorney General has no authority over State's Attorneys. MASSACHUSETTS. Attorney General has no authority over district attorneys. MICHIGAN. Prosecuting attorney is constitutional officer. Article VIII, Sec. 3. Must assist Attorney General in Supreme Court, Sec. 1161, An- notated Statutes. Must report to Attorney General. The Governor may remove all county officers for incompetence or misconduct, based on charges in writing and an opportunity of beine heard. Compiled Laws 1897. Sec. 1159. 964 EFFICIENCY AND ECONOMY COMMITTEE. LAW OFFICERS. 965 1 li . i MINNESOTA. Upon request of county attorney. Attorney General must appear in district court in such criminal cases as he may deem proper. Sec. 100. MISSISSIPPI. District attorney is constitutional officer. Sec. 174. Const. At- torney General must advise and assist. Sec. 189, 190. Code of Mis- sissippi. MONTANA. Attorney General exercises supervisory powers over county at- torneys, Art. VIII. Sec. 193. County attorneys are constitutional officers. Sec. 19, Const. NEBRASKA. Attorney General may require assistance of coimty attorney. Sec. 1187 and 5538. NEW JERSEY. No relation between Attorney General and Prosecutor of Pleas. NEW YORK. District Attorney exercises only such powers and duties as are required of him by Attorney General in cases attended by Attorney General. Art. 9, Sec. 62. The Governor may remove any district attorney, within the term for which he shall have been elected ; giving such officer a copy of the charges against him and an opportunity of being heard in his defense. Art. 10, Sec. 1. NORTH CAROLINA. No relations. NORTH DAKOTA. Duty of Attorney General to consult and advise State's Attorneys. OHIO. Attorney General required to advise prosecuting attorneys. Sec. 343, Code. OREGON. No relation between Attorney General and either district or prose- cuting attorney. PENNSYLVANIA. Attorney General appointed by Governor. Page 370. Sec. 1. RHODE ISLAND. Attorney General and prosecuting attorney have no relations. SOUTH DAKOTA. Attorney General advises State's Attorneys and consults with them. Sec. 98, Political Code, N. D. SOUTH CAROLINA. Attorney General consults and advises solicitors. TENNESSEE. Has District Attorney General and Attorney General and Re- porter. TEXAS. Attorney General advises county and district attorneys and directs them to sue in certain cases. Art. 4414, 4415. UTAH. Attorney General exercises supervision over county attorneys and requires reports of them. Sec. 438. County attorney is constitutional officer. Constitution, Art. 8, Sec. 10. VERMONT. Attorney General has same powers in State as State's Attorneys have in counties. Sec. 305. Public Statutes. No relations. VIRGINIA. WASHINGTON. Attorney General assists prosecuting attorney. Sec. 8988, Wash- ington Code. WEST VIRGINIA. Attorney General and prosecuting attorney are separate officers. WISCONSIN. Attorney General consults with and advises district attorneys. The Governor may remove from office any district attorney, giving to such officer a copy of the charges against him and an opportunity of being heard in his defense. Statutes (1913) Sec. 968. WYOMING. Attorney General is legal advisor of prosecuting attorneys. JUDICIAL DECISIONS. In the case of People v. Miner, 2 Lane (N. Y.), 396, the court discusses at some length the common law powers of the attorney gen- eral and holds that the office of attorney general is a common law office and that the attorney general possesses all the powers he had under the common law unless the same have been expressly abolished by statutory enactment. IC 966 EFFICIENCY AND ECONOMY COMMITTEE. LAW OFFICERS. 'i i In the case of State v. Robinson, 101 Minn. 277, at page 288, the court says: The office of attorney general has existed from an early period, both in England and in this country', and he is vested by the common law with a great variety of duties in the administration of the government. The duties are so numerous and varied that it has not been the policy of the legislatures of the states of this country to attempt specifically to enumerate them. Where the question has come up for consideration, it is generally held that the office is clothed, in addition to the duties expressly defined by statute, with all the power pertaining thereto at the common law. State V. Village of Kent, 96 Minn. 255, 104 N, W. 948, I. L. R. A. (N. S.) 826; 4 Cyc. 1028; Hunt v. Chicago, 20 111. App. 282; Parker v. May, 5 Cush. 336- People V. Miller, 2 Lans. 396; People v. Tweed, 13 Abb. Pr. 25. From this it follows that, as the chief law officer of the State, he may, in the absence of some express legislative restriction to the contrary, exercise all such power and authority as public interests may from time to time require. He may institute, conduct, and maintain all such suits and pro- ceedings as he deems necessary for the enforcement of the laws of the state, the preservation of order, and the protection of public rights. ILLINOIS. Clause 22 of Article VI of the Constitution of 1870 provides : At the election for members of the General Assembly in the year of our Lord, 1872, and ever>' four years thereafter, there shall be elected a State's Attorney in and for each county in lieu of the State's Attorneys now provided by law, whose term of office shall be four years. Instances in which the several State's Attorneys are now subject to direction of the Attorney General are as follows : The last clause of par. 376 ch. 120, H. R. S. 1913, the same being section 11 of the Illinois transfer tax law, makes it the duty of the Attorney General to institute proceedings for the collection of inheri- tance taxes and it is also made the duty of the several State's Attorneys to render assistance when requested to do so. Clause 8 par. 5, ch. 14, H. R. S. 1913, requires the Attorney Gen- eral to prosecute corporations for failure or refusal to make reports required by law. Par. 269h requires the State's Attorney to give notice to corporations before any suit for the collection of the penalty for failure to report to the Secretary of State is instituted. Clause 8, par. 7, ch. 14, H. R. S., requires the State's Attorneys to assist the Attorney General whenever it may be necessary. The supervisory powers of the Attorney General over State's Attorneys can be increased by requiring the latter to act under the direction of the Attorney General. It has been suggested that this power of supervision be made more effective by authorizing the At- torney-General to remove any State's attorney for incompetency or misfeasance or malfeasance in office. In support of this proposed reference is made to the provisions of law for the removal of county treasurers and sheriffs, which have been upheld by the Supreme Court, in the cases of Donahue v. County of Will (100 111., 94) and People V. Nellis (249 111., 12). John T. Donahue was elected county treasurer of Will County, qualified and was commissioned as such. It was later resolved, by the county board of Will County that Donahue "ought to be and is hereby removed from his said office." This resolution was based upon the provisions of par. 15, ch. 36, Kurd's Revised Statutes, which provide: 967 If any county treasurer shall neglect or refuse to render an account, or make settlement at any tiime when required by law, or by the county board, or refuse to answer any question propounded to him by the county board or is a defaulter and is in arrears with the county, or is guilty of any other misconduct in his office, the county board may remove him from office, and may appoint some suitable person to perform the duties of treasurer until his successor is elected, or appointed and qualified; or if by reason of the death or resignation of the county treasurer, or other cause, the said office shall become vacant, then the county board may appoint some suitable person to perform the duties of treasurer until a county treasurer is elected or appointed and qualified. The person so appointed shall give bond and security as required by law of the county treasurer. It was urged on behalf of Donahue that the paragraph above quoted was unconstitutional and void. The Court held that there was no provision of the Constitution which either prohibits the county board from the exercise of the power of removal in such cases or provides for the removal of such officers for nonfeasanse, misfeasance or malfeasance. The court further held the provisions of Section 15, Art. 5, which provide that, the Governor, and all civil officers of the State, shall be liable to impeach- ment for any misdemeanor in office. did not apply for the reason that by the provisions of Section 8, Ar- ticle 10 of the Constitution, the county treasurer is a county officer. The Court also held, in the Donahue case that the second section of the Bill of Rights did not apply for the reason that a person could not have title to or property in a governmental office. In the case of People v. Nellis (249 111., 12), the Governor, under the authority vested in him by paragraph 256x, chapter 38, Kurd's Re- vised Statutes, 1913, removed the sheriff of Alexander County from office, and the Court held that : The constitution of this State is ordinarily held to be a limitation upon the power of the legislature and not a grant of power to that body, and there being found in the constitution no limitation upon the power of the legislature to provide for the removal of a county officer in case of misfeasance or malfeasance in office, there is nothing in the constitution to prevent the legislature from providing by statute that the Governor shall, in a case like the one at bar, have the right to remove a sherifif from office, and declare his office vacant. The Court followed the precedent established in the Donahue case. In both of the cases above referred to considerable importance attaches as to whether the officer sought to be removed was a county officer. In the case of Butzow ex rel v. Kern, decided at the October, 1914, term of the Supreme Court of this State, the court held that the State's Attorney was a county officer but that he did not belong to that class of county officers whose compensation was fixed by the county board. On the other hand, it should be noted, that while county treas- urers and sheriffs are provided for in Article 10 of the Constitution, relating to counties, state's attorneys are provided for in Article 6, on 968 EFFICIENCY AND ECONOMY COMMITTEE. SECRETARY OF STATE. %9 I*." the judicial department. Section 30 of Article 6, after providing for the removal of judges, adds: All other officers in this article mentioned shall be removed from office on prosecution and final conviction for misdemeanor in office. UNITED STATES DEPARTMENT OF JUSTICE. In the organization of the United States Department of Justice, provision is made for a number of Assistant Attorneys-General and Solicitors for several of the Executive departments and certain bu- reaus, who exercise their functions under the supervision and control of the Attorney-General. This arrangement provides separate of- ficials for the departments and bureaus and at the same time organizes most of the legal services of the national government in one depart- ment. A brief analysis of the organization of the United States Department of Justice will be of service in considering a possible re- organization of the legal services of the State. The Attorney-General is the head of the Department of Justice and chief law officer of the national government. He is appointed by the President, with the advice and consent of the Senate, and is a member of the President's unofficial cabinet. He has similar duties to the Attorneys-General of the States as legal advisor and attorney in the courts for the government and its officers but is not required to give legal opinions to Congress. He has moreover a general superin- tendence over the United States attorneys and marshals in all the judicial districts of the United States, and also over the Superintendent of Prisons and applications for pardons. The Assistant Attorneys- General, Solicitors and special counsel connected with the department of justice include all the legal staff connected with the national admin- istration except the Judge Advocate General in the departments of War and the Navy. Other officials in the department of Justice include : The Solicitor General. The Assistant to the Attorney-General. Five Assistant Attorneys-General assigned to general duties, and to the defense of suits in the Court of Claims and Indian depredation claims. Assistant Attorney-General for the Interior Department. Assistant Attorney-General for the Post Office Department. Assistant Attorney-General for Customs Division. Assistant Attorney-General for Public Lands Division. Solicitor for the Department of State. Solicitor of the Treasury. Solicitor of Internal Revenue. Solicitor of the Department of Commerce. Solicitor of the Department of Labor. Attorney in charge of Pardons. Attorney in charge of Titles. Superintendent of Prisons and Prisoners. Chief Examiner (of offices and records of U. S. courts). The officials provided for separate departments and bureaus indi- cates that some advantage is recognized in having separate officials for branches of the public service which need a considerable amount of legal services. These officials too have their offices in connection with the department or bureau for which they act. At the same time, in most cases these officials are appointed by the President and Senate, an arrangement which permits both the Attorney-General and the de- partment or bureau concerned to be consulted in making appointments. The provision by which these special officials are classed as in the department of Justice and made subject to the supervision and con- trol of the Attorney-General furnishes a means for securing greater harmony and co-operation in the legal advice given to the several departments and bureaus. This arrangement is more complicated than if the special attor- neys-general and solicitors were subordinated entirely either to the Attorney-General or to the heads of the several departments and bu- reaus. But this complication is one which arises out of the dual char- acter of their duties — on the one hand to the department of bureau directly concerned, and on ,the other to the general law office of the government. The existing organization recognizes this dual char- acter, and furnishes means for closer inter-relations than would be possible if either the principle of departmental autonomy or of unity of legal services were applied to the exclusion of the other. The Judge Advocate General of the Army and Navy are not officially related to the department of Justice. This is probably due to their duties as the heads of the system of military and naval discip- linary courts, whose methods of procedure differ widely from those of the regular judicial courts. At the same time, these officials are also the advisors of their departments as to their legal rights and obli- gations in matters governed by the decisions of the regular courts of law. In such matters the fact that these officials are independent of the Attorney-General might lead to conflicting legal opinions to dif- ferent departments of the government. COMMENTS AND SUGGESTIONS. The present arrangements for the law officers of the State do not provide la coherent and efficient organization. The most serious dif- ficulty is the election of the Attorney-General, who is thus independent of the Governor and whose powers seriously limit the effective autho- ity of the Governor as the chief executive of the State. ^ The lack of coherence is increased by the provisions for counsel and attorneys for certain boards and officials. A satisfactory organization of the State's law officers should fol- low the general principles of the United States department of Justice. The Attorney-General should be appointed by the Governor, with the advice and consent of the Senate. Attorneys for boards and officers, where needed, should be appointed by the Governor, with the under- standing — and perhaps express provision — that the Attorney- General and head of the particular office should both be consulted; and such attorneys should be under the general supervision of the Attorney- General. This plan of organization cannot be carried out without a change in the State Constitution as to the method of selecting the Attorney- General. In the meantime, it may be provided that attorneys for par- ticular offices and boards shall be appointed by the Attorney-General 970 EFFICIENCY AND ECONOMY COMMITTEE. • pi with the approval of the Governor. Such attorneys should also be required to report to the Attorney-General, who should be authorized to give legal opinions in cases of conflict in their opinions. The consolidation and reorganization of departments and bureaus recommended by the Efficiency and Economy Committee should also make possible some reduction in the number of such attorneys for particular offices and more efficient legal advice to such offices. Thus a single attorney for a department of health and food inspection paid a reasonable salary, should be better than the present arrangement of separate attorneys for the State Board of Health and the State Food Commissioner. An attorney for the proposed reorganized depart- ment of Labor could replace the attorney for the Factory Inspection service. More definite powers of supervision over the State's Attorneys should also be vested in the Attorney-General. The supervision over the administration of the Inheritance Tax by the Attorney- General is not a normal function of this office; and belongs more appropriately to the offices having to do with financial matters. This supervision should be transferred either to the Auditor of Public Accounts or to the proposed Revenue Commissioner. COMMISSIONERS OF UNIFORM LAWS. An Act of 1907 created a "Commission for the Uniformity of Legislation in the United States," consisting of five persons to be appointed by the Governor for the term of four years and until their successors are appointed. It is the duty of the commission to examine the subjects of marriage and divorce, commercial paper, insolvency, form of notarial certificates, discount and distribution of property, acknowledgement of deeds, execution and probation of wills, and all other subjects on which uniformity is desirable with the laws of other states, to represent the state of Illinois in meetings of like conmiission- ers from other states to consider and draft uniform laws for the ap- proval and adoption by the several states, and to recommend such other course of action as shall best accomplish the purpose of the Act. The commissioners are to report to the Governor at least thirty days before the convening of the biennial session of the legislature; and the Governor is to submit such report to the General Assembly, with his recommendations. This commission has met with similar commissions from other states ; and drafts of proposed uniform laws have been prepared and submitted to the several states; and several such laws have been adopted in a number of states. The members of the Illinois Commission receive no salaries; and no appropriation has been made for their expenses or for any share of the joint expenses of the conferences on uniform laws. A REPORT ON ECONOMY AND EFFICIENCY COMMISSIONS IN OTHER STATES BY A. C. HANFORD, A. M. CONTENTS Introduction 07c THE MASSACHUSETTS COMMISSION OF ECONOMY AND EFFICIENCY 975-981 Report on State Institutions 977 Report on Executive Organization 979 Other Plans for Reorganization 930 THE NEW JERSEY ECONOMY AND EFFICIENCY COMMISSION 981-985 The Department of Heahh 932 The Department of Taxation 933 The Department of Shell Fisheries * 933 The Department of Conservation and Development 984 The Department of Commerce and Navigation 934 The Department of Prison Control *. 934 THE NEW YORK COMMITTEE OF INQUIRY AND DEPARTMENT OF EFFICIENCY AND ECONOMY 985-988 Committee of Inquiry 9or Commissioner of Efficiency and Economy 937 THE PENNSYLVANIA ECONOMY AND EFFICIENCY COMMISSION 988-990 THE MINNESOTA ECONOMY AND EFFICIENCY COMMISSION 990-993 THE IOWA COMMITTEE ON RETRENCHMENT AND REFORM 993-997 Report of Efficiency Engineers 993 Report of the Committee 994 REFERENCES ggg h'fl (f. ECONOMY AND EFFICIENCY COMMISSIONS IN OTHER STATES INTRODUCTION. fh. ILT^^' '*^'" "V*"^ American Union, the executive branch of the state government has m the main developed in much the same way as m Ilhno.s; and there has been the same lack of effidem organization and consequent lack of economy. In recent years how- rm^rJXtro'""-^'"''^^^"^ ■" ' ""»''- of stat'es towards n! IJ\ A °''Sa"f ation, by the consolidation and co-ordination of related services under one general control. Isolated steps in tWs direction first appeared m certain states with reference to some par- orrectfZlP- "{■fT"''- Thus the management of the charitable and correctional institutions was centralized under a single board of con- and lowa'T d e'fi >" ^ f ^^^^' """^ '^'^^ '" Wisconsin, MinnesoU fratd7o;n.^f . '' tendency towards a more correlated and concen- trated form of organization gradually developed in regard to a number of important groups of state services, including chlritable anHor- 7nZm.rZT''V^^-?'"' ^"r'y ^S"'^^*"-' agencies labor ha e been nl ^^ministration. As a result, in a few states there I \, ■ \.°''^^^r^^,'^ '^''^'■^' important executive departments — notab y in New York, Pennsylvania, Ohio and Wisconsin Within the past few years more comprehensive plans for the reor- ganization of state administration have been undertaken in a number ot states. Commissions to make investigations and to prepare definite plans were organized in Massachusetts and New Jersey in 1912 and llTr^N °'-^°'r'o^'°"^ /°'' *^ ^^''"^ purposes werJautioriz;d"n n niilif A ^"■^' ^^T^^^^"'^' I.°wa and South Dakota as well as n Ilhnois. A review of the organization and work of these bodies m other states is presented herewith. Plans for similar investigadons tns oT"l9l''?^°'1 ■; ' "aTk" °' l^'^' '^"""S the legislative ses- California ^ ^ ^"^ Alabama, Nebraska, Colorado? Idaho and THE MASSACHUSETTS COMMISSION ON ECONOMY AND EFFICIENCY viHpH°L** '*^''^' ""'^^'' consideration, Massachusetts alone has pro- reJard to n„fl1''"^"'"V?'"'"'''r J° '"^^^tigate and give advice in tS Tn 10, /^rf '*T' ^"** .*f "ntralization of state adminis- ine a Corn^ii! ' t'^V'^g'^'^t"'-^ °f that state passed an act establish- ber, Commission on Economy and Efficiency to consist of three mem- rn?r o ^"'^■to'- and two other persons appointed by the Wer"!'- \^" amendment of 1914, however, the Auditor is no 'onger an ex-officio member, and the Commission is made up of three coZ"! -^PP?!"'"^ ^^ '^' '^'^^ "^"'="*'^^ ^°' three year terms, one n^J^TTu ^r^ '^°''" ^.'''. y^^'- One of the members is desig- a alarv^' f%?nm ""' ^' '''"T?" °J the Commission and receives $4 500 h ^^^''' commissioners receive ■ 976 EFFICIENCY AND ECONOMY COMMITTEE. The functions of the Commission are to make investigations and give advice: (1) in the matter of appropriations, and (2) in regard to legislation looking toward a more efficient organiza- tion of the various departments, and boards which have to do with the expenditure of public funds. The law makes it the duty of every officer in charge of a department which receives an annual appropri- ation from the state, to submit a report to the state auditor, showing the appropriation of the department for the current year, the esti- mated amounts required for the ensuing year, and the reasons for any increases, as well as a list of the departmental expenditures for the current year and the two preceding annual periods. Upon receipt of these items from the auditor, it is made the statutory duty of the Economy and Efficiency Commission to analyze them carefully and to report to the legislature annually, and at other times in its discretion, whatever recommendations it may have as to the appropriations requested, or as to the methods of raising money for the same. The Commission not only performs such advisory functions in the matter of appropriations, but upon request from either house of the legis- lature, the ways and means committee of either branch, or from the Governor or the Governor's Council, it is required to make special examinations in regard to the financial management of any department or institution, and in its own discretion may make such investigations, and report its findings to the legislature and to the Governor. The second important function of the Massachusetts Commission on Economy and Efficiency, and the one which is of most importance from the standpoint of the reorganization of state government, is its statutory duty to inquire into the laws regarding the financial trans- actions of the state and to devise means for producing greater economy and efficiency in state administration by any changes in the laws, by the reorganization or the consolidation of departments and institutions; by the adoption of different methods of administration, through the establishment of a central purciiasing agency, or the budget system of making appropriations ; or by any other appropriate plan. In order that it may effectively exercise its investigatory functions, the com- mission is given power to require the attendance of witnesses and the production of evidence ; its members may administer oaths and take testimony; disobedience to, or failure to comply with, the orders of the commission is made punishable by fine and imprisonment; and obedience to its demands may be compelled upon petition to the courts. The Economy and Efficiency Commission was appointed by the Governor of Massachusetts in November, 1912, and immediately began a general study of the various state departments, commissions and institutions, by sending out questionnaires and making personal investi- gations. A large number of special examinations were also made in regard to" requests for salary increases from the various state officials and employes; the demands for larger appropriations and new build- ings by the state normal schools and agricultural college were analyzed; and legislation was recommended looking toward a closer supervision by the state board of education over the expenditure of appropriations in the several educational institutions. As the result of the disclosure IN OTHER STATES. 977 of certain irregularities in the Middlesex County prison, the commis- sion made a survey of the methods of administration employed in county institutions, and recommended the enactment of legislation which would do away with the existing division of responsibility between the prisons committee and controller of county accounts in regard to the examination of the financial records of houses of correc- tion. ac 1^^ f^'y^'^'A'^f''. ?^ ^^^ ^^^^^ l^^s ?^ the state, in particular, was found to be divided between two boards,-the state board of labor industries and the industrial accidents board,-with a resultant dupli- cation of functions and an overlapping of powers in the enforcement of statutory regulations for the protection of workmen. The Com- mission on Economy and Efficiency recommended that the board of labor industries be abolished and that its duties be transferred to the industrial accidents board. It was also found that the administration of the fisheries and game department by a commission of three, resulted not only in a division of responsibility and an unreasonable delay in the transaction of important business, but that there was more or less rivalry between the various parts of the state for representation on the board and for a share in its benefits. It was, therefore, suggested that the com- mission on fisheries and game be abolished and that its functions and powers be delegated to a single commissioner. Report on State Institutions. A ^"F.^bruary 1914 the Massachusetts Commission on Economy and Efficiency submitted to the Governor a preliminary report on the reorganization of the various boards and commissions having super- vision and control of state institutions,-the first of its proposed recom- mendations of a comprehensive character looking toward the consoli- dation of departments and bureaus performing inter-related functions. fnnnHfi.?'.?"''^^'^'^^^''''' ""^ ^""^'ting conditions, the commission found that the immediate control of each of the thirty-two charitable and penal institutions of the state was vested in a separate board of trustees that the general supervision of all of the institutions was scattered among three boards,— the prisons commission, the state board of insanity and the state board of charity,-and that the consequence was a conflict of authority and a lack of coordination in the manage- ment of one of the most important phases of state administration. To remedy these conditions, the commission on Economy and Efficiency recommended the reorganization and combination of the various penal and charitable commissions so as to centralize the administrative work tor all institutions in the hands of a single state organization. Two dra"ft. nTvn'T'^^J^'^ recommendations into effect, together, with '^'u a ^ ^^"^^' ^^^^ presented to the legislature wnrV^f .u ^ ?V^^ P^^"/ i^l reorganizing the penal and charitable vpJ .1. i .^ '^^l^' provided for an appointive board with power to vest the duties of administration in a single director. At the head of tne system was proposed a commission on public institutions, to con- sist of five members appointed by the Governor for a term of five years at an annual salary of $1,000 each, who should devote as much 978 EFFICIENCY AND ECONOMY COMMITTEE. IN OTHER STATES. 979 ™ ™ w /"u^'^' ""'^^^ ^^ necessary, and who should be directly; responsible to the Governor for the supervision of the department The functions of this board would be to select the director of the department and to confirm the appointments of the latter; to give the larger problems of the department proper consideration ; to provide means for the separation of the medical administration from the busi- renin-rtHT''^'^''T' i^""^ ^^ '"^ ^^^^ ^^^ ^^^^^^or carries out the required plans and policies. While the commission on public institutions should be directlv rjrnl nf / ^^^^ ^^"^!"istration of the department, the detailed man- agement of Its affairs is to be vested in a director appointed by the t?rT^ rr i"^'' ' '^' -^PP'^^l^ °^ '^^ Governor) for an indefinite h^ '^ u liT^'"'' ^"^^'"^ ""^^' ^^^ supervision of the departmental board, shou d have control of the penal and charitable institutions mcluding all matters of administration, operation and maintenance with the limitation that general policies should not be adopted by him until approved by the Commission on public institutions ; he should have power to appoint the executive secretaries, the business agent of the department and the superintendents of institutions, subject to the approval of the commission; and in general should have complete responsibdity to the commission on public institutions, to the Gov- ernor and to the legislature for the proper administration of the entire department and of the several institutions. firct M ^''f ^"It ^", ^^'^ ^J"^'^^ supervision of the department, the first Massachusetts plan made provision for four executive secretaries to be appointed by the director subject to the confirmation of the com- J^!rH T"""""^ ^"^ be secretary for the insane, another for hospitals, a t Lc -^l P^^^^"^a^d correctional institutions, and the fourth for chari- ties. These officials should have complete authority in their respective divisions; they should consult with the superintendents of the several institutions ; and should be responsible to the director for the care of the inmates in their charge. Provision was also made for the emplov- ment of a busness agent by the director of the department, who should have power to appoint a purchasing agent and other necessary assis- tants with the approval of the director, and whose duty should be to establish improved methods of purchasing and storing equipment of keeping accounts, and of constructing buildings. In addition to the commission on public institutions, the director of the department, and the executive secretaries, the Commission on Economy and Efficiency recommended that the Governor appoint an unpaid board of visitors for each institution, which should give advice m regard to medical and correctional features of administration, hear complaints from inmates, and report its findings to the commission on public institutions and to the Governor, and which should have a right of appeal to the Governor and Council in support of all charges of mismanagement. ^ ^ An alternative plan recommended by the Massachusetts Commis- sion on Economy and Efficiency was to vest the entire administrative control of the penal and charitable institutions in the hands of a central board, to consist of experts in the several fields of penal and charitable work. The powers and duties delegated to the director under the first plan would be conferred upon the central board, and fwM'^''!? P^^^.^"^,^^^^ '"^^ ^ ^^vision of the work would be made, that the duties of the executive secretaries provided for in the first system of reorganization would be taken over by the various members of the departmental board. Of the two plans submitted, the Commission on Economy and Efficiency favored the adoption of the first, and prepared a complete bill for the enactment of its principles into law. The adoption of e'ther system, it was suggested, would establish a centralized oversight of the penal and charitable work of the state, and by eliminating the present conflict of authority, duplication of services and the wrong classification of patients, make possible a more economical and efficient method of caring for the delinquent and dependent wards of the state. ^ ^^^^^^^^^"^"lendations of the Commission in regard to the penal and chantable work of the state were referred to a joint committee of the state legislature in April 1914, and during the summer of that year an act was passed providing for the reorganization of the former board ot insanity and of the board of trustees of the several insane hospitals, and centralizing the control of these institutions in the hands of a newly created Board of Insanity of three members. By this legislation the control of the thirteen institutions for the care of the insane and teeble-minded is now coordinated to a large extent under the new state Board of Insanity, although in a few instances there yet remains a slight division of authority between the central board and the local boards of trustees, and provision has not been made for a proper separation of policy-making functions from purely executive work Un the other hand it should be noted, that while the legislature has not adopted the comprehensive program of reorganizing the entire penal and charitable administration as proposed by the Commission on Economy and Efficiency, the new legislation does vest considerable authority and responsibility over the state insane hospitals in the hands of a central board, and provides a more effective method of dealing with insanity and feeble-mindedness than was possible under the old plan of divided and decentralized control by some eighty-nine unpaid Report on Executive Organization. In November, 1914, the Massachusetts Commission on Economy and Efficiency submitted to the Governor a comprehensive report of XJZ pages on The Functions, Organization and Administration of the iJepartments in the Executive Branch of the State Government "^ m this report, the Commission has collected information regarding the work performed by each state department, board, commission and institution; the powers and duties of the various officials and employes, their compensation and the system of organization within each department or board. The first chapters are taken up with a description of the most important features of the functions and organ- lAnnual Report of the Commission on Economy and Efficiencv 1914 • n 19 1«? M 980 EFFICIENCY AND ECONOMY COMMITTEE. & oVtt tteSve™" "^t^"' "^Ti" ' ^i-"' «^ the executive location of state inltinft!^' ^' • '^''°'^' ^"^^ ^ -"^p showing the of the reir is devoted to'k'de^.TH"."'' "'■'^•■•^'^"^ ^^^^ '^^S" P^^t'o" or.a„i.atfon o'f ttSral departenK "'P'"^" °' ^''^ ^^''^'''" -<> the SmSTw°th*theTnr "V ^'^ '° P'-°^'frclud™^^ "°f '''' '''' P^ the salaries of state offirink L^ i *" -^P^*^'^' ""^Ports as to (1) the reor^ani7;»t nn n? ?r t • ^ described below and include: 'Ren'or''/of?hf M"'^"f' ^^^2. Chapter. 719. on '^Tf'kVtolto^^^^^^^ NOV. 25. 1914. Executive Branch of the*'sta?e G?ve^mett " Si ^^^^^^^ ^^ ^^^ Departments in the »Annu,I Report of the Coznmission™o'n°Vo"n"oxnVand Efficiency 1914 IN OTHER STATES. 981 rate office forces and make the adjutant general the head of the ad- ministrative as well as of the military branches of the department. At the present time there are some ten Normal Schools in Mas- sachusetts, and the number of these institutions, together with the fact that they are located in different parts of the state, has given rise to certain peculiar administrative problems which are not found else- where. For several years these schools were conducted merely under the direction of the State Board of Education but for a much longer period of time they have been maintained under the direct control of that Board. At first each institution was managed by a subcommittee of the Board of Education acting in conjunction with the principal, but this system of control resulted in marked differences in both the acad- emic and financial administration, so that in 1909 the management of the Normal Schools was centralized more directly in the hands of the chief executive of the state Board of Education. The Commission on Economy and Efficiency found, however, that this change in the standard of control had not as yet removed all of the defects of the old system, and recommended on the academic side that, (1) there should be greater uniformity of instruction in the fundamental branches throughout the normal school system, and (2) that the dupli- cation of special courses offered in certain schools should be removed; and on the administrative side the Commission urged, (1) that a uni- form and centralized system of accounting should be adopted for all of the Normal Schools, and (2) that the business administration of all of the institutions be centralized exclusively in the hands of the business agent of the Board of Education. Under the existing plan of organization there is in the state of Massachusetts a Department of Animal Industry, whose duty it is to make inspections of live stock and barns in order to stamp out con- tagious diseases among animals. Also the State Board of Health and the local health boards inspect animals and barns with reference to the health of dairy cattle and the sanitation of buildings, while the Dairy Bureau of the Board of Agriculture has certain police powers relating to the enforcement of the state dairy laws. The result is naturally a duplication of effort on the part of the two state depart- ments of health and animal industry and the local boards of health; and the commission on Economy and Efficiency recommended that the duties of the Department of Animal Industry should be transferred cither to the Board of Health or to the Board of Agriculture and that wiiichever department should take over these functions should also l>e given broader powers over the local authorities. THE NEW JERSEY ECONOMY AND EFFICIENCY COMMISSION. The New Jersey Legislature in 1912 provided by joint resolution for the appointment of a "Commission to consider the best means for consolidating state agencies." This committee, which subsequently adopted the name of the New Jersey Economy and Efficiency Com- mission, consists of two members of the Senate, two members of the lower House, and three other persons appointed by the Governor. In the words of the joint resolution, the purpose of the Commission is to study the most suitable means for consolidating the various state 982 EFFICIENCY AND ECONOMY COMMITTEE. departments whose duties are closely related, to broaden the powers cenf«?brrH"V\'"^I^ ^'"'r" °' *^ state'administration in^o one «:S Sct^tetgi^ll^e. '-''"' ''' -— "d--- on this Early in the year 1913, the New Jersey Economy and Efficiencv lorn?'"""/"*""'""^ " ^^P"-"' '° the legislature con^tabfng the fo?^ hn^TJP'"'^' recommendations: (1) the consolidation of the state thelptatrfhen Tt *'' ''°"' °^ equalization; (2) the abolition o renfrff K I ^^^ commissions, and their consolidation under a deolrfmernn °K ^^T ^'^ ^'^'"^'- (3) the combination of he department of labor, the bureau of labor statistics, and the employees roli^of r^r''"" ' ^"^l '1' consolidation of the offices o7 comp union n/ It ^^^'"'^ ^""^ l^^ department of accounts; and (5) the S Commissr^*"^"' °' '"'^"'^ ^^^^^^^^ -"* *^ ^ew^L*; the Economv^and '^^"^.^'S^tion of the auditing agencies of the state, tne jiconomy and Efficiency Commission found that the work was divided between the comptroller of the treasury, whose duTyk wa of a«o™nTs wh'ol'f T''' ^" ''''' — ts!^ and the dep'artm'm accm^n^rni . u functions were to establish a uniform system of accounting to make a semi-annual audit of the accounts of all depart "f"t':t:l7counr^r' *° ^^f * ^"^ ^^"^^ ^^e finanil traLSs ot state and county officers. The result was very naturally a conflict of powers and a duplication of services, and to Remedy these defec s the Commission urged that the department of accounts be combined To the^r^V-T !"^ ^"^u"- 'r*'^ '^S'^'^ture passed a law pSng for the consolidation of these two departments (the only one of thf approS^fJ.'r ZT"''"''f *° ^' f'l^P'^'l)' ^"d also ^provldeJ an EfficTencv ronf^i. ^ continuance of the work of the Economy and i-mciency Commission during the ensuing session. In submitting its report to the legislature during the 1914 session hensf;ri7fo'r' ^""j"''- Commfssion proposel I more comP- is!raron& f°^^/econstructing certain branches of the state admin- rec™nded thf P^^f "'ed at the previous session. The Commission recommended the creation of six new departments,— each to be formed which\rth?n""'"t°r"' consolidation' of boards and commssons which at the present time are performing functions of a similar nature of fh?nronn^^'5^'"' °aT '"""'"u ^°"°"'"g' '^ ^ ^rief statemen of the proposed consolidations together with a reference to the existine organization and methods. cxibung The Department of Health. hv . lin^llT '"'.4^k"!'"u'"?*'°" .°^ N^^ Jersey is at present directed th.f tU\ y^' ''"• ^^^ Commission of Economy and Efficiency finds rol I^ department is weak in its internal organization and in its con- trol over local health matters. To remedy these conditions, the Com- mission recomnriended: (a) that the Governor appoint an expert in sanitation and hygiene as commissioner of health for a term of five years, at an annual salary of $6,000, to have direct charge of the administration of the health law and of the rules and regulations IN OTHER STATES. 983 established by the board of health, as well as the management of all details, and (b) that the state board of health be reorganized to consist of seven members including the commissioner of health as the pre- siding officer, and six other persons appointed by the Governor, all to serve for terms of six years each without compensation, and whose duty it will be to enact health ordinances and give advice to the commissioner. The Economy and Efficiency Commission further recommended that the health department, as reconstituted, be given power to act in all cases where the local authorities fail to perform their duties after due notice, and that the state board of health be empowered to enact a uniform health code for the entire state. The Department of Taxation. Under present conditions, the administration of the New Jersey taxing system is divided between the state board of assessors of four members, whose duty it is to assess and ascertain the amount of taxes due from railroad and canal companies and to compute the franchise tax upon public utilities, and the state board of equalization, consisting of a president and four assistants, with power to equalize, review and enforce taxes. The Economy and Efficiency Commission has also discovered that in appraising and valuing the property of public serv- ice corporations, the engineering force of the board of public utilities is performing much the same functions as are required of the engineer- ing staff in the office of the state board of assessors. The Economy and Efficiency Commission, therefore, recommended that the state board of assessors and the board of equalization be consolidated into a new bi-partisan commission of five members appointed by the Governor at an annual salary of $3,500 each (one commissioner being chosen each year), and that the engineering staff of the board of assessors be transferred to the board of public utility commissioners, with the right of the department of taxation to inspect all of the books and records in the possession of the other. These changes, it was estimated by the Economy and Efficiency Commission, would result in a net yearly saving of over $40,000 as compared with a total present cost of $70,580, or a decrease of over one-half in the expense of tax administration. The Department of Shell Fisheries. At present, the oyster industry in New Jersey is controlled by five independent boards and bureaus with some seventeen salaried commissioners, superintendents and secretaries in charge. The Economy and Efficiency Commission recommended that these separate bureaus and commissions be abolished and that in their place a depart- ment of shell fisheries should be established to consist of: (1) a com- missioner appointed by the Governor for a term of three years at an annual salary of $2,500, to have direct charge of the administrative work, and (2) an unpaid board of six citizens actually engaged in the shell fish industry, to be appointed by the Governor for a period of three years each, one member being chosen each year. The function of the departmental board should be to enact such rules as are deemed necessary, to give advice to the commissioner, and to determine the general policy of the department. To prevent a possible 984 EFFICIENCY AND ECONOMY COMMITTEE. IN OTHER STATES. 985 1 abuse Of power and to secure responsibility, it was proposed that the Governor be given power to remove the chief commissioner of the depar ment after a hearing, upon charges signed by a ma orfty of the founded' ' Providing he finds such charges to be well The Department on Conservation and Development. . Under the existing organization, the State of New Tersev has six important commissions engaged in conservation and developmental works, namely: the state water supply commission, the St Park Reserva ion Commission, the state riparian commiss on, theTeo oS survey, two park commissions, and the state architect's bureau The l^oT^s' hT^hnr u'T""""^ r^ Efficiency urged that these bureaus and hoards be abo ished, and that a new department of conservation and clotheH wft? ^^^^^^.^ board, appointed in the same manner and of Sh^n F 1^''''''' 'u'^'^l' 'P '^""'^ P^^^^^^^ f«^ i^ the Department of Shell Fishenes-the chief commissioner to be appointed by the Governor for a period of five years at an annual salary of $6,0CK) The Department of Commerce and Navigation. Z2.t\ln oi^he^'^.U "'''f' '^ ^"""'l^ P^^" P^^P^^^^ ^^' the reorgani- zation of the other departments, the Economy and Efficiency Com- T^V:::t^Tc'^ Tr^ ^'^- ^.^^^^^^r ^^ ^"^-^ waterways the JNew Jersey Ship Canal Commission of five members, the commission to investigate port conditions, the six commissioners of piloT^ and the inspectors of power vessels be consolidated to form a de^tmeni appointed by the Governor for five years at a salary of $3,000 and an unpaid board of six members to direct and give advice The Department of Prison Control. fr. J\l Economy and Efficiency Commission of New Jersey also J?ff^r. ^' l^"' '^"''^\ ^^, '^'' ''^'^ P^i^«" ^^^ scattered ar^o/g five work Tnd'e^^^^^^^ the keeper; the supervisor who looks afte^r the .^v Lr^K employment of prisoners; a board of prison inspectors of ernmenTnT';.''^'^-^^^^ '^"^^^^ ^"^^^ ^"^ regulations for the gov- D3e tL Pr;^^^' \Pnson labor commission and the board of parole The result of such a system has been a conflict of authority t" E^o'ntmv /nTr^"'"^'^- /'' ^.^e betterment of these condS a^ement TtL f ^^'}''''y Commission recommended that the man- ^orsw th II T P'^^".^' t^^^s^^^^cd to an unpaid board of direc- tors with power to guide, direct and legislate in regard to the same and proposed that the warden, who is a constitutionaToffi er, be Tde the chief executive of the prison, with authority to enforc^ thelaw and he rules made by the departmental board; to have direct cLrJI of all administrative details ; and to appoint all subordinates and employes subject to the right of the board^to fix salaHes ' The above review of the recommendations of the New Tersey Economy and Efficiency Commission shows that the same iS plan IS proposed for the reorganization of all of the divTsrons^of the administration, except the department of taxation. Each is to be fornied by the grouping together of two or more bureaus and com- missions which are now performing related functions largely inde- pendent of one another, and with the exception of the department of taxation, each is to be governed by a single commissioner in direct charge of the administration and by an advisory board to direct and guide. The chief commissioner of each department is to be an expert appointed by the Governor for a term of from three to five years, and at such salary as will attract persons of recognized ability; he is to ^have control of the executive work of his particular department, including the power to appoint all subordinates subject to the approval of the departmental board in some cases, and is charged with the enforcement of the provisions of the law and of the rules enacted by the advisory board. In order to make the chief commissioners properly responsible, the Governor is given authority to remove them after a hearing and upon charges signed by a majority of the departmental board. For each of the departments there is also an unpaid board, appointed by the Governor, which acts much as a board of directors in working out the general problems of administration, in the determination of policies, and in giving advice to the commissioner in charge. The advisory boards are to be bi-partisan, and their members are chosen for overlapping terms. The organization of the department of taxation is somewhat different from that proposed for the other divisions, as the Commission of Economy and Efficiency recommends its direct management by a commission of five members instead of by a single commissioner. The proposed plan of the New Jersey Economy and Efficiency Conimission, if adopted, will effect no legal changes other than in ad- ministration, and the laws will remain the same so far as defining the powers and duties of the various state officials. The number of public officers and employes, however, will be materially decreased as a result of the proposed consolidation of the twenty-five or more existing com- missions ; work of a similar character, instead of being scattered, will be brought together under one head ; and it is estimated that an annual saving of $146,811 will be made possible, as compared with a total present cost of $897,674, for the performance of the same functions by a larger number of authorities. THE NEW YORK COMMITTEE OF INQUIRY AND DEPARTMENT OF EFFICIENCY AND ECONOMY. Committee of Inquiry. Early in the year 1913, Governor Sulzer, of Nev/ York, in the exercise of his general executive authority appointed three citizens as a Committee of Inquiry to make an investigation into the expenditures of the ^tate. On March 21 of the same year, the Committee sub- mitted a report to the Governor, analyzing the appropriations of the state for the current year as well as the estimates for the ensuing year, and suggesting the reduction of certain estimates. The Committee also recommended a number of legislative measures for the establish- ment of a group of new central financial agencies, for the consolidation of certain related bureaus, and for the organization of a permanent Commission on Economy and Efficiency. 'H 986 EFFICIENCY AND ECONOMY COMMITTEE. IN OTHER STATES. 987 i- A ^!Lf" ^"v^stigation as to the financial administration of the various departinents and commissions, information was secured as to the"r K?I' ^?^'°P"^'^°"^ ^^' '^^ '"^^^"^ y^^'> '^^ ^"^ounts requested for the ensuing year, and a statement of any increases or decreases in n1-' m* its finH- ''^' ^T ^'^ ^^"^^"^^ P^^^^"^^^ ^ report contain ing. (1) Its findmgs and recommendations in regard to each seoarate department, with particular attention to the demands for increased appropriations and, (2) a revision of the estimates for whicrappr^ pnations were requested. Also a new appropriation and suppTbTll for the entire state was prepared, setting forth the items recommended by the Committee of Inquiry and involving a net reduction of %772 000 as compared with the actual appropriations of the preceding year Tnnn^^^'"''^!' ^^^ ^''""^7 ^''"''^^^" ^^ ^^^ ^^^ York Committee of Inquiry was to examine the expenditures of the different departments an analysis was also made of the financial methods employed by the various state agencies, in order to devise means for securing economy Ti^^^rr- "\'^' P^^^[' ^^^^^^^- ^' ^ ^^^"1^ «f this gen^eral 3 n!c! .?! !f '"'f 'f '^"' *^^ Committee found that the so-called bus^ ness methods of the state were anything but efficient, and that there was immediate need for a complete change in the exisiting sys em of makmg appropriations and m the administrative machinery for con- rolling and safeguarding the expenditure of such appropriations a f^er hey have been made. With this end in view, the Commh ee of Inquiry recommended: (1) that the fiscal year be altered so as to correspond more closely to the legislative session; (2) that^enera^ are made (3) that all unexpended balances lapse at the close of each year; (4) that it should be unlawful for departmental officers to incur ihn M ?.'" f '' ^^ appropriations, and that under no circumstances shou d they be empowered to make such expenditures; and (5 "ha supply bills should be discontinued. ^^ fn c J^^ Committee of Inquiry was also of the opinion that in order to secure the economical and efficient expenditure of money, it would menT.'wT \'^^^^u^'' ^""'T'^^ reorganization of certain depart- ^rLf r^'^^f-. T^'' ^^'^ ^^""^ '^ ^^ especially true in the control of the penal mstitutions and of the conservation work of the state I he conservation department has been organized under the control of r^Z^^^'^uT^"^' "^^l '"/T" ^ '^^^^y ^^ $^0'00^ each; the com- tTn r>i •^^'k^''' "^'^^1^^ ^^^^ ^^'^^ divisions, each division in turn with various bureaus, thus making necessary a large number of assistants and involving a payroll of $77,300 exclusive of the salaries Cnr^n^tw ""7 ""^ Subordinate employes. In the opinion of the Committee of Inquiry, the conservation department had too great an overhead charge and it was estimated that a saving of at least $45,000 per year could be effected by placing the work in charge of a sinde commissioner, with one deputy for each important division, and a general secretary and advisory counsel for the entire department. i-ncfi^I"-^ Committee also found that the administration of the penal mstitutions was divided between five different authorities,~the state supermtendent of prisons; the commission of prisons, consisting of seven persons, and provided for in the state constitution; the board of parole; the board of classification, of twelve members; and the conimission on new prisons. Each of these officers has certain official duties connected with the state prisons, and the committee recom- mended, that all of them, except the state superintendent of prisons and the prisons commission should be abolished, and that their respective powers and duties should be delegated to the prisons commission, which should be reduced from seven to three members. The need for reorganization and consolidation of other services was also pointed out; but the above mentioned plans were the only ones for which definite proposals were made, and for which the Com- mittee submitted complete drafts of bills. The various recommen- dations made by the Committee of Inquiry to the Governor were trans- mitted to the legislature; but nothing definite has been accomplished in the way of constructive legislation for carrying the same into effect. An Act of the legislature, however, provided for continuing the work of the Committee of Inquiry by a Commissioner of Economy and Efficiency ; and Governor Glynn appointed one of the members of the original committee to this office. The Commissioner of Economy and Efficiency has devoted his en- tire attention to the matter of state appropriations and expenditures, and on March 16, 1914, submitted a complete budget report to the Gov- ernor, setting forth his recommendations in regard to the financial needs of the state for the fiscal year beginning October 1, 1914. The items of appropriation recommended in this report, were determined after a careful examination of the requests for appropriations as filed by the various departmental officers, and every item was presented in comparison with the amounts appropriated the previous year, thus bringing into relief each new position in the state service, every increase in salary, and every proposed addition to miscellaneous expense. With this data as a basis, the Commissioner of Economy and Efficiency prepared a completely segregated form of appropriation bill or budget, presenting all positions under their proper departmental titles, and subdividing every large item of miscellaneous expense into smaller units so as to prevent the concealment of unnecessary positions and expense accounts under the heading of office expense and other deceptive titles. Nearly every estimate submitted by the heads of departments was revised and materially decreased, and the amounts recommended by the Commissioner of Economy and Efficiency were set forth in itemized form and in parallel columns along side of the appropriation requests submitted by the departmental heads in the usual unitemized form, while the whole report was supplemented by explanatory notes from the departments concerned and from the Com- missioner of Economy and Efficiency. The total amount of appropriations recommended by the Com- missioner of Economy and Efficiency amounted to $33,854,680 as compared with a total of $39,773,371 requested by the departmental heads, or a reduction of about one-seventh. Although most of the data contained in the budgetary report was available at the time of the passage of the annual appropriation bill on March 21, 1914, the recom- MMk^ 988 EFFICIENCY AND ECONOMY COMMITTEE. m • f mendations of the Commissioner of Economy and Efficiency were passed over by the ways and means committee/and the assembTy com- mittee prepared the annual appropriation measure in theTustomaTv manner and form. The report has been published, however a^d is of much value m presenting a careful and intelligent analysis of the financa needs of the state, and in showing the necessity for a more systematic method of making appropriations so as to secure greater efficiency and economy m the financial administration of the state of Fffln"i^n' A°l J^""^''^ •^' ^^^^' ^^^ New York State Department of Efficiency and Economy, in cooperation with the New York Bureau of Municipal Research, has published a detailed survey (of 768 pages) of the organization and functions of the Government of the Statfof u u ,1°'-'^' P'-eP^ed for the use of the Constitutional Conven don to be held m Aat state in 1915. This like the MassachuseTts Report on THE PENNSYLVANIA ECONOMY AND EFFICIENCY COMMISSION.' efficiencHf 't^r.^'J^^''^"'^- ^-^'^ *?°^ "^ *^^ "^^^^^^ ^^ increasing the emciency of the state administration and of bringing about a greater ^L^ . ^ ^ ^ provided by joint resolution that the Governor should X!e o"f iT^r 'J:^ ^t^""^^ Commission of three members at Cn^r^- ' l'^^ ^^^^- ^* ^^^ "^^^^ the power and duty of the Commission to investigate the number, the character of the duties and IscerTa^whatVT '' '" ^'"'"^ ^" ^^^ ^"^^^^^ ^' ^^^ state and to ascertain what changes were necessary to secure greater economy and mt^n? "An'' ""'^ 'V''' Y'.T ^-P-^tmentf, bureaus an7com ?.!! K^ , appropriation of $25,000 was made by the general to $m 000^ '^'^ ^«^^' ^^' '^'^ ^-vernor cut the fmount to $10,000, because of insufficient state revenues. The joint resolu- lon creating the Commission of Economy and Efficiency provided that Lff^J "^^Kt ''P^'' °^ '^' ^"^^^^^ "^t ^^'^' than November 1914 and that upon the presentation of such a report its work should cease! m accordance with the above-mentioned legislation, the Pennsvl- vania Economy and Efficiency Commission entered upon its work of investigation, and in December, 1914, submitted to the^overnor a re- ^nrlhL ^^^^^^"^^"dations, together with an appendix which sets tVTcffi Tu' n""^'^^ .^""^ compensation of every person employed by ^^.l^^'Jf' ^f ^"^i^s^on did not attempt to propose a comprehen- t on ^"^^^^t'^^^^^ted plan of reorganizing the entire state administra- I Hnnl! M- ^^^",^°"^by the Economy and Efficiency Commission in Illinois, Minnesota, and Iowa, but its work has been more in the nature of a preliminary survey. Special inquiry was made: (1) as to the <^T^^'n\ f ^1^ regulating the various departments and commis- !^"f' ^ii^lu ^^^ "^"]^^* compensation and duties of all persons employed by the state, and whether or not their positions were created by statute or were temporary appointments made by appropriation; ^"^ (^) ^" regard to the duplication of services or the conflict of au- IN OTHER STATES. 989 1914. •Report of the Pennsylvania Economy and Efficiency Commission. December 24. thority in the administrative branches of the state government. In case a department or commission was found to be performing its functions with a fair degree of efficiency, the Economy and Efficiency Cornmission usually offered suggestions for making the work more effective, and, wherever necessary, recommended that increased ap- propriations be provided, while in other instances it proposed the aboli- tion or reorganization of certain departments, offices and commissions. Following is a review of the more important recommendations which the Pennsylvania Commission made for improving the administrative work of the state. (1) The Governor; The Commission recommended that the gover- nor be relieved of the routine work of auditing and approving certain expenditures — a function which has greatly interfered with his general executive duties and which properly belongs to the fiscal officers of the state. (2) Department of Justice: The Economy and Efficiency Commis- sion found that the attorney general had performed his duties in an effi- cient manner, but it disapproved of teh practice of employing individual counsel and attorneys by certain departments, as being unnecessary and expensive. The Commission, therefore, proposed that all of the legal forces of the state should be centralized in a newly created department of justice, similar to the department of justice in the United States gov- ernment. This department should be under the control of the attorney general and should include also a solicitor general and a staff of assistant attorneys general. (3) Auditor General's Department: Under the existing organiza- tion, the auditing of public accounts in Pennsylvania is performed by the Auditor General and the State Treasurer, and these same officers have also been investec^ with the authority to assess and collect taxes. By this arrangement, the Treasurer and Auditor General are placed in the anom- alous position of assessing and collecting the state taxes, disbursing them, and then auditing the assessments and disbursements which they have themselves authorized. In order to relieve the confusion of duties which should be kept separate, the Commission recommended that a state tax commission of three persons should be created which should take over the functions of assessing and collecting state taxes, and indicated that the auditing of all accounts should be centralized in the hands of the Auditor General alone, although its recommendations on this latter point were not altogether clear. (4) Conservation Department: At present the conservation work of the state is divided between three different authorities: — (a) the for- estry department; (b) the department of fisheries; and (3) the depart- ment of game commisshaners. In order to eliminate the duplication of services and to provide greater efficiency, the Economy and Efficiency Commission recommended that a department of conservation be estab- lished under the direction of a single commissioner at $7,500 per year, and that the existing departments of forestry, fisheries and game be made sub- divisions of the department of conservation, with a director in charge of each division. The Commission further recommended that an advisory commission should be created, to be composed of one recognized forester, one expert fish culturist, and one recognized game protectionist to act in an advisory capacity to the conservation commission. (5) Public Buildings and Grounds: The Economy and Efficiency Commission also found that the present system of purchasing supplies by the commissioners of public grounds and buildings and by the separate state departments, and the erection of buildings by numerous temporary boards, resulted in extravagance and a lack of uniformity. Consequently it recommended that a new board of public property should be created which should supervise the planning and erection of all state institutions and which should also purchase supplies for all of the state departments. :il 990 EFFICIENCY AND ECONOMY COMMITTEE. IN OTHER STATES. 991 In order to prevent the abuse of these rather large powers the CommU sion proposed that all contracts entered into by%he board of prp^Av tt°"sttc' frrasurer"'" ™'"^''' ^' "'" ^°^'™°^' '"^ ^"'^''°' GenemTanJ -inni^V ^^'' ^■'""^'V ""i ^'""''^ "f Examiners: The Economy and Effi- uency Commission has also urged that all appointments to subordinaVe fsterTLT^ff/r"'^'"^/" "■"••""'» 'If^""- '^hich should be admll- istered by a state board of examiners. The state board of examiner, should not only administer the provisions of the civil se^ice law Tut h uch t fL'f ' T'f "'^^""^"°"? °f "-^ miscellaneous examinng board such as the board for the examinat on of accountant the state dental board, the state board of undertakers, etc., which at the present time are performing their duties independently of one another. In addition to the above-mentioned recommendations for the re- organization Of certain existing state departments and commissions and for the creation of several new services, the Pennsylvania Eco- ^v^U^.f K ir"^- Commission urged the adoption of a uniform 7Zr^ bookkeepmg and accounting, and pointed out numerous spechc improvements which might be introduced in the various branches of the administration. In a number of instances the Com- mission recommended that increased appropriations should be made for the carrying on of important functions such as are performed bv the department of health and the geological survey, which are at pres- ent greatly hampered by the lack of sufficient funds. Perhaps^one fh, H ""f .""y^l ^"1 interesting suggestions of the Commission was that the legis ature should provide for a bureau of publicity which o w fat' h'"'"' *' ''"'1 r^ ^''P *^ ?"•"'<= ^n'inually infoL^d as to wliat the commonwealth was accomplishing Appended to the formal report of the Commission, is a detailed summary setting forth the names, duties and compensation of Tper sons employed by the state. These names are classified according to departments, and are accompanied by complete references to Those statutes which relate to the various departments and positions. THE MINNESOTA ECONOMY AND EFFICIENCY COMMISSION. In October, 1913, the Governor of Minnesota on his own initiative appointed an Economy and Efficiency Commission of thirty members representing all parts of the state and every important polidc^ and he a'tf L°'"' ° ^'r- '%T''"^^' P'^"^- ^^-^ the reorganization of the state administration. The commissioners have served without compensation, and have paid their individual expenses, while the other funds necessary tor carrying on the work have been derived from private subscriptions The Commission did not confine its efforts t^ tj/°.'^^"''T°" °^°"'y ^ ^^^ important departments, but pro- Cthe'^nre^aTe^dmt- taZi^""'^'"-^^' ^'^ ^' -^-'-'^ if ., ^1/ ^".'"^'"^ principle, the commission adopted a resolution that It would not recommend any changes in state functions, but would restrict itself to the methods of performing existing functions, wkh ilt'l^l'f ^^^™^^^^"^ \Pl^" for carrying on the state adminis- tration as It now IS, or may be in the future, with the highest degree stder?d'l3Vh ?l.^'"?''^ ?^ "^^ ^^'"^^^^ ^'^'''' should be fon- 3idered, and that the plan of reorganization should be from the top down. In November of 1913 the membership of the Commission was divided into subcommittees, a staff was appointed, and Professor E. p. Durand, former director of the United States Census, was placed in charge of the investigation, as chief statistician. In its preliminary report submitted to the Governor, the Minne- sota Economy and Efficiency Commission has presented an outline of the plan which it proposes to follow in providing for the reorgani- zation of the state administration, — the three main features of the plan being: (1) the reorganization of the executive service; (2) the estab- lishment of the merit system in the civil service; and (3) the adoption of a budget system for appropriating money. As the result of its preliminary investigation, the commission found a state of affairs much the same as has been discovered in other states where similar surveys have been made, namely, — the impossibility of fixing responsibility; a lack of coordination between agencies performing related functions ; and the employment of a large number of unnecessary officials. The Economy and Efficiency Com- mission has proposed to remedy these conditions by grouping similar agencies under a few great executive departments, thus providing for a single state administration in place of control by some sixty inde- pendent departments. In order to prevent a possible abuse of the extensive power lodged in the hands of the Governor and the heads of departments by this proposed plan, the Economy and Efficiency Com- mission recommends the establishment of a civil servrce commission and the appointment of all employes except the heads of departments according to the merit system. The commission further recommends the establishment of a budget system which will make possible the con- sideration of state expenditures as a whole, and which will substitute a study of relative needs for guess work in the appropriation of money. Following is an outline of the proposed reorganization of the state executive department as recommended by the commission: — The Economy and Efficiency Commission finds that the greatest defect in the general organization of the state executive department is the multiplicity of independent branches; the diversity in forms of organization ; and the predominance of the board system. At pres- ent there are about seventy-five independent agencies in charge of the administrative work of the state, the majority of which are boards largely independent of one another, and over which the Governor has very little control. In order to centralize the entire state administra- tion, the commission proposes a plan which is a novel one from the standpoint of state government, but which is in general similar to the organization of the national administration. The main feature of this plan is the grouping of the various state services, at present largely independent of one another, under six great departments. At the head of the entire system is the Governor, while the legal department under the Attorney General, the recording office in charge of the Secretary of State, the Civil Service Commission, the account- ing department in charge of the State Auditor, and the Tax Commis- sion will constitute what is known as the "general administration." This is not a department strictly speaking, but rather a group of offices 992 EFFICIENCY AND ECONOMY COMMITTEE. whose work, such as the legal affairs of the state, the keeping of records, and the auditing of accounts, is related to all of the depart- ments. Such an arrangement will not only serve to centralize the auditing of accounts and the equalization of taxes, but will also relieve the elective state officers of membership on executive boards and free them from the burden of miscellaneous duties. The other functions of government will be distributed among one of the following divis- ions: (1) the department of finance; (2) the department of public domain; (3) the department of public welfare; (4) the department of education; (5) tlie department of commerce and labor, and (6) tiie department of agriculture. ^^ Each of the departments so established, with the exception of the finance department and the department of education, will be in Charge of a director, to be appointed by the Governor, and who shall serve during the pleasure of the latter, while the departments in turn are to be sub-divided into bureaus, each of which will be under ttie control of a commissioner to be appointed after a competitive or non-competitive examination. The finance department, however, will be in charge of the state treasurer, while for the department of edu- cation the commission proposes two boards, the board of regents for u lu^^ university and a new board of education to have control of all other educational work,— with power to select the president of the university and the director of education respectively. With these two exceptions the general plan of organization is the same in all depart- ments It is mtended that the directors shall be laymen and not ^r^Fr .1 f .1 u^ ""^^ ,^.^^"^^ ^^^^ ^^^ Governor, but provision is made that the bureau chiefs shall be persons of expert ability, thus combming practical technical service with popular control. The directors as heads of their respective departments will be responsible to the Governor and to the people for the administration of the same and will constitute a Governor's cabinet similar to the cabinet of the President of the United States. In this manner the whole adminis- tration is expected to become a unit. Although the Economy and Efficiency Commission has recom- mended the placing of all executive functions in the hands of the various departmental directors, it recognizes the need of certain boards tor advisory, sub-legislative and quasi-judicial functions, and has pro- posed such a board for each department. In some of the departments, existing boards and commissions may be made use of, while for each ot the other divisions the commission recommends that a board of trom five to nine members be appointed by the Governor. Some of these boards, such as the board of railroad commissioners in the depart- ment of commerce and labor, and the advisory board for the depart- ment of public welfare, will possess sub-legislative power to make rules .and regulations in regard to the rights and duties of public service corporations and in regard to health matters, and all the boards will have advisory functions and powers, will make suggestions to the director upon request, and may offer recommendations in their own discretion. IN OTHER STATES. 993 omn^l^fl!ff'1? f Economy and Efficiency Commission is of the Z7dV^Ll\l^^^^ ?^ TV^ P^^'^ ^^ reorganization will unify Irnmen^ in wh ? ^"^ "lake the Governor the true head of the gov- anv^neffic^n^v n "^^^"''7 ^\'^^^ ^" P^^P^^^^ ^eld responsible for l7steT^l\.7 "^^^^^"duct throughout the state. It is further sug- fl^officJ of rnv '''"'' ^" responsibility and power will tend to make nrnh.Ki ^overnor one of greater importance and dignity, with the Tncum^^^^^^ "' """'' '"'"'^^" ^"^ ^' P^^^ '^ the selec^tion of its . In November, 1914, the Minnesota Economy and Efficiency Com- TvZVs^dmt''^ '"'^ "P-°^^ V" ^^^^^"^^ E^-h-t in the f^orm of a proposed bill for reorganizing the civil administration of the state St'svrtem ^r "r^ '^^ ^'^^^^^^ ^^^'^^ -' appointi't and a budget system of making appropriations. The report contains several charts showing the present and proposed plans of administratfvror ganization, and the draft of the bill is accompanied by a i^S^ber of analytica and explanatory notes which will provide the leSure •commSn^'"' """'" "''" '' '"""'^^^ ^'^ reLmmendationf of thl THE IOWA COMMITTEE ON RETRENCHMENT AND REFORM. 19n^"ti'''^?T "l"^'^ ^" ^'^ ""^ th^ ^^""^'^^ Assembly of March 17, an hnri..H fl ^^^I^^^tee on Retrenchment and Reform" was authorized to employ "expert accountants and efficiency engineers" and to institute such changes in the administration of public affairs fffZ. nf T"" w '^' '^'^'"'^ ^"^ economical administration of the Parker L^V '" '^' l-T""^ departments."^ The firm of Quail, ex/r^Jn. f ^/^"^P^"/' ^hich was appointed by the Committee to ho^T 'T '^"^''"^ ^"""^ expenditures of the various state offices, boards and commissions, presented a report on the Department of Agriculture on March 25, 1913, and a preliminary report on the heat- ing plant at the State Capitol in May of the same year, while the final igll^l findings was submitted under the date of December 21, Report of Efficiency Engineers. In this report, the efficiency engineers not only recommended the aacoDtion of more efficient methods and greater economy in the work ot the various state offices and departments, but also presented a plan tor reorganizing the executive branch of the state government which it was suggested would bring about the concentration of authority and tiie location of responsibility and also introduce the short ballot the merit system of appointments, a scientific budget and general busi- ness ethciency. cultural departments prior to the enactment of the law of March 17 1913 ^ ^" Fno-i?'^^ following account of the final report of Quail Parker and rn Trffi«»« Kngineers, was obtained from a monograph in the ADDliwi Hi«?nr,, « ' •^®*^i®??5' 994 EFFICIENCY AND ECONOMY COMMITTEE. The proposed plan recommends in the first place the consolidation of the offices of the State Treasurer and State Auditor by the creation of a new Department of Finance, which, under the direction of the above named officials, would control the entire accounting of the state government, and make possible the adoption of a scientific method of budget control, an efficient accounting system and an independent audit of public funds. In the second place, it is proposed that the offices of the Secretary of State and Attorney-General be combined to con- stitute a new Legal Department, with supervision over all matters of legal record and justice, the Secretary of State to "have charge of the executive and legislative records, and the Motor Vehicle Bureau; while the Attorney-General will conduct his branch on similar lines to those at present existing." As necessary features of the general administration, the efficiency and economy engineers employed by the Iowa committee, also recommend the establishment of : ( 1 ) the office of State Purchasing Agent; (2) the position of Chief Accountant; and (3) a Civil Service Commission to administer the merit system, through which are to be filled all administrative positions except the constitutional officers and the heads of departments. The Finance Department and Legal Department, as described above, are to be formed by the consolidation or redistribution of the functions of the general administrative offices, w^ile the other execu- tive functions and activities of the state government are to be grouped under one of the following seven departments: 1. Department of Agriculture 2. Department of Commerce and Industries 3. Department of Public Works 4. Department of Public Safety 5. Department of Public Health 6. Department of Education 7. Department of Charities and Correction It is proposed that the Governor shall act as Director of the Department of Public Safety; and each of the other departments is to be under the immediate control and supervision of a Director-Gen- eral, to be appointed by the Governor with the consent of the Senate. The plan of reorganization as proposed by the Efficiency Engineers provides not only for the unification of the general admin- istrative functions under the control of the four elective officers of the state and the distribution of the other functions of government among seven departments, but the present Executive Council (com- posed of the elective executive officers) is to be displaced by a new Council consisting of the Directors-General of the various departments with the Governor as its Chairman, thus making the chief executive the real head of the state administration. None of these reforms, it is pointed out, necessitates the amendment of the state constitution, but are in the main such as it is possible to secure tli rough ordinary legislation. Report of the Committee. On November 12, 1914, the Committee on Retrencl]ment and Reform published a preliminary report regarding its own recommenda- IN OTHER STATES. 995 tions for reorganizing the state administration, which differs somewhat from the plan proposed by the efficiency engineers, as well as from the several plans proposed by similar committees in other states.^ The members of the Committee on Retrenchment and Reform do not recommend the creation of new departments under the Secretary of State, the State Treasurer and Auditor, as do the efficiency engineers, but propose to relieve the above mentioned officials of their miscellan- eous executive functions and thus restore them to the status originally contemplated at the time the constitution was adopted, with the pur- pose ultimately of abolishing these offices by constitutional amendment and transferring their remaining functions to the three great depart- ments to be described later. Such a policy, the Committee suggests, would not only "concenrate authority in the«Governor as the appointing power," and eliminate "the division of authority now prevailing, but would shorten a badly encumbered ballot, thus making for simplified government.^° The plan contemplates the creation of three great divisions of administration by the grouping together of related departments and offices, namely: I. The Department of Social Progress, to include and have super- vision over the following existing departments: Superintendent of Public Instruction Educational Board of Examiners State Library Geological Survey Historical Department Historical Society of Iowa Academy of Science Public Archives Library Commissions Board of Control Board of Parole. Board of Education II. The Department of Industries, to include and have supervision over the following existing departments: Department of Agriculture Weather and Crop Bureau State Veterinary Surgeon Commission of Animal Health Horticultural Society Inspector of Bees State Entomologist Dairy Association State and County Fairs Railroad Commission Commerce Counsel Commissioners of Insurance •Preliminary Report of the Iowa Committee on Retrenchment and Reform, pub- lished In the Des Moines Register and Leader, Nor. 16, 1914. "Ibid. 996 EFFICIENCY AND ECONOMY COMMITTEE. IN OTHER STATES. 997 Industrial Commissioner Bureau of Labor Statistics Banking Bank Examiner County Examiner City Examiner Public Accountant III. Department of Public Safety, to include and have supervis- ion over the following existing departments: Attorney General Adjutant General State Militia Fish and Game Warden State Highway Commission Custodian of Public Buildings and Property Capitol Extension Land Office Fire Marshal Board of Health Board of Medical Examiners Board of Law Examiners Board of Dental Examiners Commission of Pharmacy Dairy and Food Commission All examiners of this division Oil Inspectors Mine Inspectors Board of Voting Machine Commissioners At the head of each of the above divisions would be a chief officer, appointed by the Governor, to have general supervision over the several departments placed under him. The Committee does not at this time set forth any detailed system for the appointment or control of the various departmental officers under the three great divisions, but suggests that there would be a direct line of responsibil- ity, the subordinate officials being immediately answerable to the head of one of the three great divisions, who is in turn responsible to the Governor. ^'Instead of each department being left to pursue its own course wholly or substantially independent of all other departments, all would be welded together in coordinate activity, minor department heads under the great department leader, the three department leaders laboring together and all in cooperation with the Governor as supreme head, becoming in fact the cabinet of the Governor and responsive to his policies."" Thus it is evident that the plan of administrative reorganization, as recommended by the Iowa Committee on Retrenchment and Reform, presents several features which differentiate it from proposals of a similar nature in other states. The most important features are : (1) the grouping of the state activities into three great divisions, iiPreliminary Report of the Iowa Committee on Retrenchment and Reform, pub- lished in the Des Moines Register and Leadtr, Nov. 16, 1914. whereas in Illinois and Minnesota it is proposed to consolidate the existing functions under six or more departments; and (2) the pro- posal that ultimately the offices of the Secretary of State, State Treasurer and Auditor shall be abolished by constitutional amendment, and their respective duties and functions transferred to one of the three proposed divisions. The basic principle of the Iowa plan of reorganization is, therefore, the complete centralization of adminis- trative control in the hands of the Governor. In addition to recommending a general unification and consolida- tion of the state administration, the Committee on Retrenchment and Reform makes a number of general suggestions for increasing economy and efficiency in carrying on the public business of the state. In the first place, it is recommended that all appointments should be made on the basis of ability, that the political activity of public employes should be curtailed, that public employees should work approximately the same number of days and hours per day as are demanded in other business enterprises, and that the time clock, universally adopted in large industrial establishments, should be installed by the state. In the second place, the Committee recommends that the Governor should make up a budget showing the needs of the state, and place the same in the hands of the legislature immediately upon convening. In the third place, the suggestion is made that the duties of the purchasing agent, now employed by the board of control, should be extended to include the purchase of all state supplies, and that the excessive expense of published reports be reduced by eliminating unnecessary duplications. Although the preliminary report of the Committee on Retrench- ment and Reform is directed primarily towards outlining a plan of administrative reorganization, it also contains several general recom- mendations for increasing the economy and efficiency of legislation, namely: (1) the adoption of some method whereby the status of any bill introduced may be ascertained at any time, thus preventing the loss or neglect of bills; (2) a reduction of the number of legislative clerks, doorkeepers, janitors, etc; (3) a reduction in the size of Committees; and (4) the prohibition by rule, of the dictation of correspondence, ^etc, to the members' clerks in open session as disconcerting and destructive of business efficiency. .,tf ^98 EFFICIENCY AND ECONOMY COMMITTEE. is* " REFERENCES. Massachusetts. Report of the Commission on Economy and Efficiency, December 31, 1912. Annual Report of the Commission on Economy and Efficiency for the year ending December 31, 1913. Report of the Commission on Economy and Efficiency on the Reorganiza- tion of Boa.ds and Commissions having supervision and control of State Insti- tutions, submitted February 7, 1914. Report of the Commission on Economy and Efficiency, on Functions, Organization and Administration of the Departments in the Executive Branch of the State Government, November, 1914. Annual Report of the Commission on Economy and Efficiency, 1914. Rhode Island. State Commissions on Economy and Efficiency, compiled by Chester C. Waters, Ph. D. Legislative Reference Bulletin No. 7, Rhode Island State Library. New Jersey. Message of the Governor transmitting Report of the Commission to con- sider the best means to consolidate State Agencies, February 8, 1913. Message of the Governor transmitting to the Legislature the Second Report of the Commission upon the Reorganization and Consolidation of different Departments of the State Government whose functions are interrelated, Feb- ruary 16, 1914. Third Report of the Economy and Efficiency Commission, 1915. New York. Report of the Committee on Inquiry to Governor Sulzer, transmitted to the New York Legislature, March 24, 1913. State Budget Report by the New York Department of Efficiency and Econ- omy transmitted to the Governor, March 16, 1914. Government of the State of New York, a Survey of its Organization and Functions. Prepared for the Constitutional Commission by the New York State Department of Efficiency and Economy and New York Bureau of Munici- pal Research, January 1, 1915. Pennsylvania. Report of the Economy and Efficiency Commission of the Commonwealth of Pennsylvania, 1915. Minnesota. Preliminary Report of the Economy and Efficiency Commission, 1914. Final Report of the Economy and Efficiency Commission. Iowa. Senate Journal, — April 4, 1913, pp. 1646 ff. Reorganization of State Government in Iowa, by F. E. Horack, Iowa Applied History Series, Vol. II, No. 2. Report of the Committee on Retrenchment and Reform, Des Moines Reg- ister and Leader, November 16, 1914. A REPORT ON FIRE INSURANCE RATES IN ILLINOIS BY MAURICE H. ROBINSON, Ph. D. PROFESSOR OF INDUSTRY AND TRANSPORTATION UNIVERSITY OF ILLINOIS PREPARED FOR THE EFFICIENCY AND ECONOMY COMMITTEE CREATED UNDER THE AUTHORITY OF THE FORTY-EIGHTH GENERAL ASSEMBLY STATE OF ILLINOIS ft''' f J; CONTENTS Introduction iqq^ Historical Development 1005 Methods of Conducting the Fire Insurance Business 1007 The Mutual Plan 1007 The Stock Company Plan 1007 State Insurance 1008 How Rate Are Made 1008 Competitive Rates 1008 Schedule Rating 1009 Co-operative Agencies 4 1010 State Regulation of Insurance 1011 In Illinois 1011 In Other States 1012 Anti-discrimination 1013 Rates to Be Filed 1013 Hearing Complaints 1013 Rate-making Associations Authorised 1013 State Fire Insurance Rate-making 1014 Rates in Illinois 1015 Building Construction and Fire Protection 1017 The Moral Hazard 1017 Co-insurance 1024 Summary and Conclusions 1026 i; m I) I: J INTRODUCTION During the investigation by the Efficiency and Economy Com- mittee of the admmistration of the laws for the supervision of cor- porations and business under public regulation, and while considering plans for the organization of the several State offices and commissions dealing with these several matters into a single executive department there arose the question of the powers that the Commissioner should be clothed with over insurance companies and the further question as to whether the present State laws were adequate. In this general dis- cussion many questions arose, among them the question of fire in- surance rates. Properly to arrive at a just conclusion, the Committee determined to have prepared a general survey of the fire insurance business, including the matter of fire insurance rates. The Committee did not have funds sufficient to make any extended investigation of insurance companies ; and it was therefore, suggested that the reports of the various State commissions and commissioners of insurance be used in the preparation of the paper. In accord with this suggestion, the Committee requested Professor Maurice H. Robinson to prepare a short history of fire insurance and also a brief report on fire insur- ance rates. The study made in accordance with this request and the suggestions of the Committee is herewith presented. Therefore, this study of Professor Robinson's is not an exhaustive original investigation of the subject. As the Committee had sug- gested, he has used the data set forth in the reports made by special commissions and State Insurance Commissioners in other states. While this report was prepared some months previous to the report of the present Insurance Superintendent of this State, and was founded on the reports as suggested, it is in full accord with the special findings of Superintendent Potts that fire insurance rates in this State are inequitable and excessive ; that fire insurance rates are controlled by a combination of insurance companies; and that such rates should in some way be regulated and controlled by the State. On the question of how to deal with insurance companies in the matter of rates there is ample room for a just difference of opinion. It should be noted, however, that the recommendations in the report herewith appended are in direct agreement with the recommendations of the Special Com- mittee of State Insurance Commissioners appointed by the Insurance Commissioners of the United States in their annual convention, of which Committee Insurance Commissioner Ekern of Wisconsin was a member. As a result of its investigations, the Committee decided to limit Its recommendations to changes in administrative organization under existing laws and not to propose changes in the substantive law. This determination was reached, not only because of the question as to its authority in the latter class of matters, but also because the plans for administrative reorganization involved as much as could be carefully 1004 EFFICIENCY AND ECONOMY COMMITTEE considered in time for the Committee to report to the Forty-ninth Gen- eral Assembly. The recommendations in this paper were not in all respects concurred in by all the members of the Committee. However, they do meet with the approval of some of the members. This report is printed and submitted for the valuable information it contains on the subject of fire insurance and fire insurance rates. Walter I. Manny. ;i j i 4 A REPORT ON FIRE INSURANCE RATES IN ILLINOIS. BY PROFESSOR MAURICE H. ROBINSON, UNIVERSITY OF ILLINOIS. HISTORICAL DEVELOPMENT. Fire Insurance as an important factor in business affairs dates ??u t ^f^^^^ ^'^ '^ London, in 1666, when over eighty-five per cent of the buildings in that city were destroyed. The next year, one Nicholas Barbon opened an office for the purpose of insuring buildings against hre. This venture was so successful that in 1680 the business was enlarged and a partnership formed under the name of "The Fire umce. In 1681 an attempt was made to establish a department of the city government for the purpose of underwriting risks by the city. Ihis project was abandoned after two years experience. The business steadily grew in importance, and in 1681, the first of the mutual companies was formed and began operations under the name of "The J^riendly i^ociety," an organization which lasted for one hundred years. Ihus It will be noticed that within a period of fifteen years, 1666-1681 all the important methods of carrying on fire insurance, viz.-stock' state and mutual were operated in London side by side as a direct result of the greatest conflagration, relatively speaking, which history records. Iv)r the first one hundred years after the great fire, the growth of fire insurance was slow. Beginning about 1800, the busi- ness ot insuring buildings against the ravages of fire began to develop more rapidly and during the last seventy-five years the growth has been both extensive and intensive, until at the present time every civ- ilized country has a fairly well developed fire insurance system cover- ing a large proportion of the fire risks. It is not possible, to determine the exact amount of insurance in force in the United States at the present time. This results from two conditions: (1) Only a part of the insurance actually carried is reported to the various state insurance departments,^ and (2) there IS no organization that makes it a business to collect and publish all the insurance actually in force in the several states. It is, however, possible to reach an approximation that is fairly accurate Each state published the total amount of the insurance car- ried by the several companies authorized to operate within its iurisdic- InH ' ir .u ^^ '^'''■^ important companies operate in the larger states and while there are many small companies operating locally, the total bulk of such insurance is relatively small. Taking the companies reporting to the State of New York, it is found that on DeceSTl 912 such companies had a total of $51,202,402,351 of fire insurance Tn^T^' Au'^ """'^ ^^ ^"^"^^^ insurance carried by unauthorized companies and by companies operating in other states^ but not in New of mI ^I'^l'^^y ^^^"^^ that the companies operating in the State TTn> Tcy"! ""f '^ seventy-five per cent, of the total carried in the United States, then the total amount covered by insurance would be approxi^mately seventy billion dollars ($70,000,000,000). From these ^Report of the Commissioner of Insurance. Wis 1914 n i*? 'N. Y. Insurance Report, 1913., pt. 1, p.lky.' ' ^' ^■ m 1006 EFFICIENCY AND ECONOMY COMMITTEE. approximations it would seem that the risks subject to destruction by fire are fairly well covered by fire insurance.^ The reason for the rapid growth of fire insurance during the last seventy-five years is not difficult of explanation. The property of each individual owner is subject to destruction by fire at any time. For the whole United States the annual fire loss has averaged about $225,000,000 for the past ten years, and in one of these years, viz., 1906, the total loss by fire was ov^r $500,000,000. This annual loss must be borne by someone. Formerly it was borne by the owner. Now most property owners prefer to pay an annual fire insurance tax and be relieved from the risk of a partial or total loss. Fire insurance IS, m fact, a great cooperative institution, all those insured contrib- utmg to a common fund, and all the insured who suffer fire losses drawing out an amount equal in general to their individual losses. The annual contribution of each is small in comparison to the individual's mcome from which it is drawn. A fire loss when it comes is liable to represent a substantial portion of the savings of a lifetime. The sum of all the contributions is nearly double the actual losses, but so much more serious is a total or nearly total loss to any individual when considered from the standpoint of his economic well-being than a series of comparatively small ones, that society could well afford to pay even more than it does now rather than dispense with the pro- tection afforded by fire insurance. It follows from this that fire insurance rates might be raised con- siderably above their present level and still the individual members of society would find it to their advantage to carry insurance. Why then do not insurance companies raise their rates? There is some competition between the standard fire insurance companies. More important, however, is the competition of the mutual companies, including town and county mutuals, factory mutu- als, the Lloyds and during the past five years the inter-insurers. The town and county mutuals are, however, not fitted by nature to undertake risks subject to the conflagration hazard. Therefore, their competition is substantially limited to country districts and the smaller towns. The factory mutuals, the Lloyds and the inter-insurers are, on the contrary, admirably fitted to undertake such risks. Con- flagrations are unlikely to occur in several cities at the same time. The factory mutuals, the Lloyds and the inter-insurers make it their policy to scatter their risks and so avoid to a large extent the con- flagration hazard. Moreover, by a well-organized system of inspec- tion, the factory mutuals and to a somewhat smaller extent, the inter- insurers, have so encouraged and perfected the art of fire prevention, that their burning ratio has been phenomenally low as compared with risks insured in the usual way. As a result, fairly active competition has been maintained in many lines of commercial risks, including fac- tories, stores, warehouses and the like. Such insurance has not, how- ever, been developed to any extent among property owners of other classes in the congested districts. In such cases, competition is gen- erally ineffective and the rates are likely to be somewhat above the average. *See U. S. Geological Survey, Bui. 418, for other •stlmatos. FIRE INSURANCE RATES METHODS OF CONDUCTING THE FIRE INSURANCE BUSINESS. 1007 There are three methods of carrying on the business of fire insurance : The Mutual Plan The Stock Company Plan State Insurance The Mutual Plan In the mutual plan of carrying on insurance, a group of risks are associated under an agreement, whereby each individual member agrees to bear such a portion of any loss that may come to any of the risks associated as the insured value of his property bears to the total insured value of all risks insured. Generally speaking, each insured deposits a certain stipulated premium and guarantees by a note or other evidence of his responsibility that he will bear any additional assessments that may be made by the proper authorities on account of additional losses. The premium deposited is, however, usually larger than is necessary to pay the prorated share of the losses and expenses, and any surplus is held as a reserve and finally, or at intervals, dis- tributed according to the plan adopted at the beginning among the insured. In mutual insurance the rates charged are not important. The important features are : The actual fire losses; The expenses of conducting its business ; The distribution of the burdens— that is, the share that each member finally bears. The Stock Company Plan Notwithstanding the advantages of the mutual plan, a very large proportion of all fire insurance is conducted by stock companies or by individual insurers and partnerships for profit : The reasons for this condition are as follows : 1. The conflagration hazard is directly connected with the building of wooden structures closely adjoining one another as in the modern city. Under these circumstances it is inevitable that fires should spread. Occasionally where the conditions are favorable, con- flagrations result. Such was the case in Chicago in 1871 ; in Boston in 1872; in Baltimore in 1904 and in San Francisco in 1906. Unless the mutual companies are so large as to be unwieldy from the administra- tive point of view, or the risks so scattered as to make the expense of doing business prohibitory, the losses to the individual policy holder are liable to be so heavy in case of conflagrations as to make the insur- ance a burden rather than a help. On this account mutual companies generally have confined their activities to the country districts, or to villages and have left the congested city to the stock companies. ' 2. The object of a rnutual company is to save money to the IJf^.r^^. ^y reducing the cost of insurance to the actual expenses. While It IS quite impossible with the information at hand at the pres- ent time to make a comparison of any value, it is often stated that the I 1008 EFFICIENCY AND ECONOMY COMMITTEE. fire insurance business is not particularly profitable.* Certainly more insurance companies have failed during the past fifty years than have made financial successes. The mutual rate is gen- erally low— due to the following reasons: (1) Much of the work con- nected with the administration is not paid for at its commercial value ; and (2) the mutuality of the insurance tends to reduce the actual fire loss, where the insured are closely associated. This is best illustrated by the experience of the factory mutuals where the fire loss has been reduced by a careful inspection and the dissemination of information to a fourth and in some cases to an eighth of the former rate. 3. The difficulties connected with establishing and maintaining efficient administration of mutual companies has proved a marked obstacle to their development. This obstacle is growing less each year but is still of great importance. 4. In some states mutual companies are encouraged by appro- priate legislation ; in others, the state occupies a neutral position ; in still others, the state government has seemed to discourage the forma- tion of mutual companies, and to favor the stock plan. Historically speakmg, Illinois seems to have adopted the policy of neutrality. It seems to the writer that the state ought to change its policy in this respect and adopt that of encouraging the formation and operation of mutual companies in all fields of insurance. State Insurance As stated in the historical introduction, State Insurance was tried in London as early as 1681, but was soon abandoned. State Insur- ance has, however, been fully developed in several of the leading European countries, especially in Germany, where the government has played a leadmg part in undertaking industrial activities as well as in regulating those owned and operated by private individuals. It is m New Zealand, however, that State Insurance has been promoted with the greatest vigor. There it has been used as a means of regu- lating the rates of the stock insurance companies rather than of secur- ing a revenue to the government. As this report was undertaken for the purpose of comparing fire insurance rates in Illinois with those in other states, where the conditions are somewhat similar, it would be inconsistent with its purpose to enter upon a discussion of the relative merits of the three plans of carrying on the business of fire insurance." HOW RATES ARE MADE Competitive Rates In the earlier history of fire insurance, rates were made by indi- vidual fire insurance underwriters, entirely independent of the others in the same line. Under such conditions the rates were sharply com- petitive and for the larger risks there was active bidding. Sometimes the premiums were less than the average cost of the fire losses and still the rates were maintained on the same general level. The reason for this is evident when one considers the circumstances : (1) Any rate above the direct costs of placing the business— wriHnI?^*.vni'M«i^*';?/'iii>" "'® *^^t"^ 5^ -^""^ ^' 1^1^' shows that the losses and under- FIRE INSURANCE RATES 1009 that is, agents^ commissions, etc.— is likely to give a clear profit as the chances are strongly in favor of escaping without any fire, or fire losses, during the period of insurance. (2) The agents who place the insurance are primarily interested in writing insurance for the sake of obtaining commissions, conse- quently their influence is in favor of lowering the rate in special cases where the business would otherwise go to some other agent. (3) Until recent years, there was no statistical information avail- able upon which to make a rate based upon the average fire loss. As a result of the above conditions, rates tended to be high for the small owners, or for those unable to obtain mutual insurance, and low for the large owners and those able to form or take advantage of mutual companies already in existence. Competitive fire insurance rate making thus led to discrimina- tions between risks of essentially the same general character, depen- dent upon whether the owners were able to make use of competition or not. Thus some rates were excessive and others too low. Such a condition was good neither for the companies nor the policy holders Two general movements were inaugurated to correct the evils one started by the policy holders, the other by the companies. We 'shall discuss the plan inaugurated by the companies first. Schedule Rating Schedule rating is an attempt to measure class hazards and to base the general rate on the class hazard. In addition, there is a further attempt by a system of credits and demerits to fix the rate on each individual risk according as it is better or worse than the class to which it belongs. The first attempts to work out a system of schedule rating dated . -JJ!.., ^ ^^r?^ ^*"^^ following the Civil war. One of these originated in Philadelphia, another in St. Louis. Neither of these systems how- ever, was much used. Each proved to be so much more equitable to all parties that a general movement was inaugurated under the general direction of Mr. F. C. Moore, to prepare a schedule that might be used by all the companies. A committee was appointed representing the leading fire insurance companies and as a result of their work the Mercantile Schedule was formulated and adopted. Since about 1890 It has been in general use in eastern states and includes some of the •leading cities in the eastern central states. (1) The Mercantile Schedule: This schedule is based upon two central ideas : ( 1 ) A standard city and a standard building, and (2) a system of charges and credits for deviations from the estab- lished standard.^ The base rate for a standard building in a standard city was fixed at twenty-five cents. To obtain the key-rate for a stand- ard building in any other city, additions were made on account of deficiencies as to water works, fire departments, building laws, narrow streets. To the key-rate for any city, charges are added to find the rate for individual buildings on account of deficiencies from the speci- fications of a standard building. FirelSsuTance.^*""^'"^"^"'''' ^°^ Co-operation in Fire Insurance. Tale Readings iu ^Moore, Fir« Insuranct and How to Build; The Mercantile Schedul*. 1010 EFFICIENCY AND ECONOMY COMMITTEE. FIRE INSURANCE RATES 1011 (2) The Analytical Schedule: Soon after the Mercantile Schedule was formulated, Mr. A. F. Dean of Chicago began working on a schedule constructed on different lines. In the first place, the Dean or Analytical Schedule^ classifies cities into six classes— depen- dent upon water protection, fire departments, etc. ; and in the second place, the deductions and additions are on a percentage basis rather than a fixed amount. By dividing cities into classes, the work of rating mdividual risks is somewhat simplified; by making the charges on account of individual defects or excellences, a percentage of the origi- nal base rate, the principle of relativity is adopted, viz., that a defective flue m an mflammable home is a greater hazard than an equally defec- tive flue in a fire proof building— that is, each added defect makes the original defect worse. The principle of schedule rating is a sound and equitable one. Rate-making thus becomes scientific in character and as the experience of the various companies becomes wider and as their records become more complete and extensive the schedule rates become more and more equitable,— as between different classes of risks and different individ- uals insured. It is evident, however, that schedule rating in itself gives no protection against a high level of rates. Cooperative Agencies With the general adoption of schedule rating it became desirable for the companies to cooperate for the purpose of making the basic schedules, and having entered into such cooperation it was of course natural to observe the rates thus made. For the United States there are two important rating associations, the Western Union and the Western Insurance Bureau. The Western Union was formed soon after the Dean Schedule was formulated and embraces the states of the northern portion of the Mississippi Valley, west of Pennsylvania, north of Alabama and east of Colorado, Wyoming and north to the Canada line. The member- ship IS made up of officers and agents of stock companies and it has jurisdiction over rates and commissions for all those who are members of the Union. Its administration is entrusted to a committee but the important rules and regulations are made by the Union in the regular way— a nine-tenths vote being necessary to establish new regulations or modify old ones. All members must observe the tariff of rates established by the Union. The actual work of making individual rates is performed by local boards and inspection bureaus. For Illinois, the Illinois Inspection Bureau -^operating under the supervision of the Western Actuarial Bureau and subject to the control of the Western Union has charge of the Dean Schedule and keeps it up to date. A rating book is pub- ished for each of the cities and villages, and the agents representing the companies belonging to the Union are required to observe the rates as published. The Western Insurance Bureau: Until about four years ago there were a considerable number of companies that for various rea- sons^d not belong to the Union. Such companies, called "Non- cago.%. ^^"^ PJ^"o8ophy and Method of Operation of the Analytic System. Chi- Board Companies,'' generally followed closely the Dean Schedule of rates, but in many cases were paying their agents a higher rate of commission. In June, 1910, a large portion of the non-board com- panies organized the Western Insurance Bureau and established a uniform rate of commission, varying from fifteen to twenty-five per cent., except in certain preferred risks where the commission is as high as forty per cent. In April, 1912, the Union and Bureau entered into a combination for the purpose of establishing a uniform rate of commission for both organizations. While there is no agreement to that effect, the result of this combination has been to secure the adoption of a uniform rate of premiums for writing insurance by both organizations. At the present time competitive rate-making between stock fire insurance companies in fire insurance is, generally speaking, a thing of the past. Whatever competition exists is between the mutuals, the Lloyds the inter-insurers and the companies comprising the Unions, bince the mutuals are by their nature, and to a certain extent by law, prevented from entering into competition in centers of population where there is danger of conflagrations, a considerable part ofthe fire insurance business is not subject to competitive conditions. STATE REGULATION OF INSURANCE While the companies have been establishing cooperative agencies for the purpose of making and enforcing non-competitive rates the several states have been creating State Departments of Insurance and authorizing such departments to supervise the activities of the com- panies and more and more to regulate and control the rates promul- gated by the rate-making associations. In Illinois Til- ^-^1 ^^^^^ ^^^ ""^^^ "^h'lch the insurance business is conducted in Illinois has two principal objects: to prevent insolvent insurance com- panies, associations, etc., from undertaking risks, and to secure a revenue from the insurance business. The law covers these two objects in a satisfactory way. The Insurance Superintendent is given ample power and is provided with an office force sufficiently large to enforce the law fairiy well. The Insurance Superintendent is, however, not directly authorized to exer- cise any supervision over either rates or rate-making associations. • ^J^^^^^O" should, however, be called to two clauses, one of which gives the Superintendent power to classify risks and the other to secure and publish information as to the actual rates in force Section 21 (paragraphs 37, 38, 40) of Chapter II of the Insurance Laws (Edition of 1911) provides: r;,t,'nn Vf 'fL^^-*!?^ "^"^^ °^ l^^ Insurance Superintendent to establish a classifi- delril /i^ ' into any number of classes, not less than four, according to the tfrdZi ^'^'"^ °^ '"'^ ?'t'' ^I"^ ^^'^ Insurance Superintendent shall require re^uire^hv'Hw^' ^ ^^'' ^U^' aforementioned statement (the annual statement emhi^r.^ ^« "^l *°i ^'""^ the number of policies in force covering property each^Lss. ^""^ '^' aggregate amount at risk upon property in The Insurance Superintendent is hereby authorized and empowered to address any mquines to any msurance company or the secretary thereof, vl i t: 1012 EFFICIENCY AND ECONOMY COMMITTEE. FIRE INSURANCE RATES 1013 I- tra::Sns;"a^d^fs3 bT rfcf°Jh °*^^ n,atter connected with its reply in writing to such inquires ^ '^' '°™P'"^ '° addressed to promptly M^ companies a true exhibit of their condition in respect to thVseveral toin^, hereinbefore mentioned. ■ ^ several points It shall be the duty of the Insurance Superintendent to cause the informa- tion contained in the statenients required by this section to be ari^ngedT a tabular form and printed in his biennial report. ctirangea m a It will be noticed that the Insurance Superintendent is to establish a classification of risks into any number of classes, not less than four according to the degree of hazard; he is further authorized to inquire into the doings of all insurance companies ; he may change or modify the form adopted by the legislature whenever in his judgment such changes would better secure the desired information, and finally he is required to publish such information in his annual report. In view of the above provisions of the law it is evident that the Insurance buperintendent is not only empowered, but it is made his duty to secure full publicity of fire insurance rates, by establishing classes of risks and securing information in regard to the number of policies in each and the aggregate amount at risk upon property in each class, mat such information would prove of the very greatest value hardlv needs argument. It has all the merits of proper publicity. Its chief value would lie in its discouragement of discriminations in rates against certain classes of property. It is possible that such information would have little effect upon the general schedule of rates. It would how- ever, facilitate a comparison of rates in Illinois with rates on similar classes of risks in other states, and thus tend toward an equalization of rates in general. In Other States Up to the present time sixteen states have enacted legislation providing for a greater or less supervision of fire insurance rates. These states in the order m which the legislation was enacted are as lollows : New Hampshire 1899 Kentucky loo Montana 1903 Arkansas 101^ South Carolina 1904 New Jersey*.*.'.*.";.*.* 1912 ^^^^^T^ 1907 North Carolina ...::;;:;:*: 1913 Kansas ..y-.. 1909 New York 193 Louisiana (Repealed 1912).... 1910 Texas ign Massachusetts 1911 Washington .'.'.V.V.V.V.V '. 193 Missouri (Repealed 1913) 1911 West Virginia ............. V.V 1913 In the fourteen states where state regulation of rates is now in force the po;yer of the State through the courts or Department of Insurance varies very greatly. Some merely prohibit discriminations ; some require all rates and schedules to be filed and made public rec- ords; some authorize certain authorities to hear complaints; some authorize the insurance department to change rates on complaint after an investigation ; and one provides that the rates and schedules shall be made by a state commission. A nti-Dis crimination Montana in 1903 enacted an anti-discrimination law, which pro- vides: (Chapter 112, Laws of 1903) — "No insurance company organ- ized under the laws of this state, or doing business in this state shall make or permit any discrimination or distinction in favor of individ- uals between insurants or property of the same class in the amounts of premiums or rates charged for policies or in the dividends or other benefits payable thereon." Agents violating this provision are made guilty of a misdemeanor. Companies and officers are liable to a fine of not exceeding $500 for each violation, to be recovered by an action in the name of the state. Further, the State Auditor is required to revoke the license for one year of any company found guilty of disobeying the law. Oklahoma has a similar provision in the anti-trust law, and the State Insurance Commissioner has ruled that the section applies to fire insurance corporations. • Rates To Be Filed Eight states, viz., Kansas, Kentucky, Arkansas, New Jersey, New York, North Carolina, Washington and West Virginia, require rates and schedules to be filed and, generally speaking, to be open to public inspection. Hearing Complaints Massachusetts and New Hampshire provide that any person or company aggrieved by any rating of any insurance company may file a complaint with the insurance commissioner. In Massachusetts the complaint is heard by a board composed of the Insurance Commis- sioner or a special deputy appointed by the commissioner and two citi- zens appointed by the Governor, sitting as a board of appeal for fire insurance rates. After due hearing the board is authorized to make a finding "as to whether the rate is excessive, unfair or discriminatory, and shall make a recommendation." The finding and recommendation in each case is a public record, open to inspection, but is not obligatory upon the companies. In New Hampshire the commissioner is author- ized to conduct the hearing and if the rates appear to him to be exces- sive, he may fix a reasonable rate, which must be adhered to by the companies. Refusal to insure property at the rate fixed by the com- missioner after a hearing is punishable by a fine of $200 for each offense. Rate-Making Associations Authorized The latest development in state legislation concerning fire insur- ance is connected with the authorization and regulation of rate-making associations. This movement seems to have originated in Missouri in 1911. Under the Missouri Act the companies operating in that state formed the Missouri Actuarial Bureau and employed a force of expert raters and the necessary clerical help, under the general direction of Mr. H. M. Hess, one of the leading authorities on the Dean Schedule. Before the work of this Bureau was completed, the legislature of 1913 passed additional legislation making it illegal for any company to use any rates prepared by any rating association. While the former % 1014 EFFICIENCY AND ECONOMY COMMITTEE. I legislation was thus negatived and the work of the Actuarial Bureau rendered useless for the time, the idea was adopted in New Jersey, New York, North CaroHna and Washington and seems likely to spread over a wide territory in the immediate future. The New York legislation is the most comprehensive and there- fore Its principal features will be described as an illustration of this type of regulation. The New York Act provides that every corpora- tion, association, bureau or person that maintains a bureau or offices tor suggesting, approving or making rates to be issued by more than one underwriter for insurance on property or risks in the state must : U; tile with the Superintendent of Insurance a copy of the articles of agreement, etc., and such other information in regard to its organiza- tion as may be required by the Superintendent; and (2) submit to exammations by the Superintendent of Insurance as often as he deems expedient, and in any case at least once in every three years. The Super- intendent is required to make public the results of such examinations in his annual reports and to report to t^e legislature on the methods of operation of such organizations. The records of such organizations are rnade public records and the companies or bureaus are required to turnish the Superintendent any schedule of rates or other information that he may demand. Such bureaus may not discriminate between members nor may they make rates conditioned upon the whole or any part being placed at such rates or with subscribers to the ratine organization. ° ' ,u . '[^^\^^&^slation is the most important step in the right direction that has been taken in recent years in the supervision of insurance rates. Ihe making of scientific rates cannot be undertaken by indi- vidual companies on account of the enormous expense. It must, there- tore, be done either by the companies through cooperating rating bureaus or by the states. From the scientific point of view the rate! should be made by experts and the expense should be borne by the companies that are profiting by the business. Cooperation in making insurance rates, however, prevents competition between the companies and, therefore, such rates naturally become monopolistic in their char- acter. Consequently such rates should be under the supervision of some public authority. This condition has been recognized in the New York legislation and the proper supervision of such rates pro- vided for in the law. ^ State Fire Insurance Rate-Making On the sixth of September, 1910, the State of Texas enacted the hrst general State Fire Insurance Rating law within the limits. of the United States Under this act a general schedule of rates based upon the Mercantile System was promulgated. In 1913 the Act of 1910 was repealed, and a new act along the same general lines, but giving the state board more complete control, was substituted in its place. The Act of 1913 provides: (1) For a State Insurance Commission composed of the Com- missioner of Insurance and Banking and two commissioners to be appointed by the Governor by and with the advice and consent of the Senate; FIRE INSURANCE RATES 1015 (2) The State Insurance Commission shall exclusively fix and promulgate maximum rates of fire insurance premiums to be charged and collected in the State. Companies writing insurance in the state are not permitted to charge rates higher than the rates promulgated in the schedule, nor to charge less in any case unless they make such lesser rate applicable to all risks of the same class situated in the same community. Under the authority of this act and its predecessor, the State Insurance Commission was created and organized in Texas in 1910 and promulgated its first schedule of rates on July 15, 1911. This Texas Basic Schedule, in accordance with the principles of the Mer- cantile Schedule: Defines a standard city and provides by a system of charges and credits for deviations therefrom. The application of the charges and credits gives the key-rate for a town ; Makes a classification of buildings based upon the character of the con- struction and defines a standard building in each class, with a series of charges and credits for deviation from the standard ; Provides an occupancy table for various commodities ; Makes specifications of charges and credits for various kinds of expo- sure; and Describes a large number of special hazards with the appropriate rates for the same. The Board schedules are contained in a book of 354 pages and are supplemented from time to time with amendments. Changes in any of the foregoing provisions are modified by order of the com- mission. RATES IN ILLINOIS In a paper read before the National Convention of Insurance Commissioners, held at Burlington, Vermont, in July, 1913, the Hon. F. W. Potter, then Insurance Superintendent of Illinois, stated® that he had called upon the stock fire insurance companies doing business in the State of Illinois, Kansas and Texas, for a statement of their fire premiums, fire losses and expenses for a five-year period ending December 31, 1912. During this period there was no supervision exercised over rates in Illinois. In Texas the State Rating Board had been in exist- ence for about two years ; and in Kansas, the State Insurance Super- intendent had been exercising authority over rates for a period of four years. The results of this inquiry, according to Mr. Potter, showed that ninety-seven companies doing business in Texas had suffered an under- writing loss of $3,435,745 and of approximately $500,000 in the State of Kansas. Mr. Potter planned, he stated, to communicate the results to the State Legislature, with a recommendation that the state law be amended in such a way as to clothe the State Superintendent of Insur- ance "with sufficient discretion to refuse a license to companies desir- ing to do business in Illinois, and admitted to these unprofitable states, where by the terms of the law or its necessary effect, the rate-making function is taken away from the insurance companies." 'Proceedings National Convention of Insurance Commissioners, 1913, p. 57. 1016 EFFICIENCY AND ECONOMY COMMITTEE. FIRE INSURANCE RATES 1017 i , Instead of carrying out his original intention, Mr. Potter ore- sented the matter to the National Convention of Insurance Commis- sioners chiefly on the ground that it was a matter concerning all the ::5tate Insurance Departments and ought, therefore, to be first dis- cussed by that body. The paper of Mr. Potter was extensively dis- cussed, but no action was then taken. Later a Committee on Rates was appointed and the Honorable Herman L. Ekern, Commissioner of Insurance of Wisconsin, was made Chairman. This Committee has been carrying on an investigation, but has not yet published its report ^^ Mr. Potter very properly contends that no State should, by act of legislation attempt to get its fire insurance at less than its share of the total cost for the country as a whole, and that where a state persists m so doing it may become desirable for the other states to take concerted action to remedy the situation. His first proposal, that of excluding companies doing business in a losing state from transacting business in a profitable state, has so many disadvantages that it cannot be seriously considered until other methods have been tried. The tendency at the present time is to per- mit companies to join together for purposes of making scientific sched- ules and specific rates and give the insurance department the power to prevent discrimmations between individual risks within the same class If after such regulation has been in operation for a period sufficient to give It a thorough test, rates as a whole are unduly high, then it may .become both wise and necessary to clothe the state departments with the power to raise or lower general schedules as in Kentucky and The statement of Mr. Potter was intended to prove that the busi- ness of insuring property risks is more profitable in some states than in others m certain years. The tables published by the various insur- ance departments show, however, that while certain companies con- duct business at a loss in certain states during certain years, the com- bined business IS usually fairly profitable, especially for the larger and better established companies. 8 ^ To find whether the insurance is unduly profitable it becomes necessary to compare the net savings with the capital invested and at a risk. The New York Report" made an investigation of the actual earnings on capital for — Class 1. The six largest U. S. companies The six medium U. S. companies The six smallest U. S. companies Six new companies. Six foreign companies. Class 2. Class 3. Class 4. Class 5. The results were as follows: Per cent. Class 1—20 years Average rate of earnings 10.1 Class 2 — 20 years _ 55 N' ^"^Spn?^K*12"?o1f**I\^®""®^ ?' *^® Insurance Commissioners held at Ashevllle Class 3 — ^20 years 4.5 Class 4 — Company 1 28.5 Company 2 — 2.3 Company 3 5.1 Company 4 — 2.6 Company 5 8.7 Company 6 — 1.6 Class 5 — Company 1 9.3 Company 2 — 4.7 Company 3 6.7 Company 4 5.1 Company 5 — 1.1 Company 6 — 14.8 ( — indicates a loss.) Attention may be called at this point to the expense ratio. The New York Report shows^^ that for every dollar received in premium 38^ cents is paid out for expenses, and that of this amount 21.5 cents is paid to agents in the form of commissions. While it is not within the scope of this report to investigate the proper expense ratio for an insurance company, it may be pointed out that the fire insurance busi- ness as conducted at the present time does not necessitate an extensive system of salesmen and solicitors as is the case with life insurance; nevertheless the ratio of expense to premiums is much higher in the case of life insurance business. The question of especial interest to the citizens of this State is: Are the rates relatively higher in Illinois than in the United States as a whole or in other states similarly situated and with approxi- mately the same hazards? This question is not easy of solution with the information available under present conditions. A comparison of rates — that is, the pr.emium paid per $100 worth of property insured — is obviously of little or no value in this connection. It is well known that fire insurance rates in European countries are exceedingly low \yhen compared with those in force in the United States. This condi- tion is due chiefly to the comparatively small fire loss in European countries. This small fire loss again is due chiefly to two causes : Building Construction and Fire Protection Frame construction is almost unknown in European cities.^^ In the United States it is the rule, except in restricted areas in certain of the cities. Fire protection in many of the cities in the United States is comparable with that afforded in Europe. But in other cities the protection afforded is entirely inadequate considering the risks involved ; as a result, the conflagration hazard, as well as the annual fire loss, is small in European cities and relatively large in the United States. The Moral Hazard The moral hazard is the title given to all classes of hazards that arise out of circumstances which make it possible for persons to profit from the burning of insured property. For example, wherever there I'Page 91. ^•U. S. Geological Survey, Bui. 418, pp. 16-21. 1018 EFFICIENCY AND ECONOMY COMMITTEE. is an opportunity to recover from the insurance companies compensa- Imer^es'^^Fnr.V '^' ^^'"1°^ *^ P'""?"'^ ''"^^^^ moral ha^rf emerges. For this reason the valued policy is universally opposed bv morarha^a^r^For ?h-''"''"« *° ^''t '^ ^^^'^^^^ and^iSfecessa^ moral hazard. For this reason also the coinsurance principle with the usual eighty per cent, clause is generally favored. In this connec- hT coSan^'f ''''\ ''^ -'-d policy i unknown L Europe? and the coinsurance principle is practically a universal one On thk knoJn^Zl' '^'" ^T^i]^' ^^'^.^' ^^ ^^^^^ importance. It is well known that every building situated within a few hundred fee from a burning building is under considerable risk from the so iSL:E"f.^h"^H- '^^ ^^P^^^^^ hazard VrrJJh he nXZw ^.1^^ bmlding and contents, the distance from the bum- ectiin IZnln^'^'^if ^!!^ ^"^^^^'^ ^^ *^^ ^i"^' ^^^ the fire pro- tection afforded by the fire department. It is of course true that the exposure hazard is independent of the original causeTt^e fire The ZtvoTve'a' >"'"' '" '"" '"^^^^"^ ''' ^^^ -^^ -^ t^: insurance l^^v Hrnnc 1 7. 'a ^"^ ^""^"T^ Conflagration. The man who care- n £ case of Ife A^ IT^'}' ^"" i? ^ ^."; ^^ ^"^^^^^^^ "^^^^"^^ ^s 1911 when 14^ l'^ ^"J^fT ''^ ^^^ Y^^^ ^'^ the 24th of Ma^ch, lyil, when 143 working girls lost their lives, is equally as daneerous and ought to be legally responsible. The European\ountries have rec ognized this danger and have attempted by appropriate legisladon to TtV\^ ^.^"^'"^^ ^"'^"^ therefrom This result is pL Lllv acco^ phshed by laws making every individual responsible for Toss of h7e or property caused by his own gross carelessness and ne^ect As a result of the less inflammable buildings, more adequate firfprotection and the reduction of the moral hazards by appropriate lelisktion the fire loss in European countries is relatively small Ld the Ttes for' fire insurance correspondingly low. ^ The following table, compiled by the Geological Survey and the Bureau of Manufactures, shows the fire loss pe? capita for cities of the same size in the United States and Europe.^* Population. TI <: i? . Over 300.000 $2^ ^'*''^t- 100,000-300,000 7m $5 50,000-100,000 247 Al 30,000- 50,000 328 HI 10,000- 30,000 237 'I? Under- 10,000 ......'.:;; 347 ^^ is as^follows'? '''''' ""^ approximately the 'same"size; 'the comparison 1. Paris (1904) Loss per capita. Loss per capita. 2 ^fprT^ •VVnn.V 47.... Chicago (1907) . . ™-^'""*i:Tj 2. St. Petersburg (1904) 1.42. .. .Philadelphia (1907) 145 Sheffield, Eng. (1904) 5. Frankfort. Ger. (1904) 6. Bremen, Ger. (1904) ... 7. Toulon, France (1904) ...'.*;.*.* "Fbll'p?*^!***^**^*^ Survey. Bui. 418, p. 24. .18 Cleveland (1907) .'."..'!*.*" 112 .31 Cincinnati (1907) . q*70 .38. ...St. Paul (1907) 256 .55.... Atlanta (1907) '/.'.'.'.'.'/.[ 2.15 FIRE INSURANCE RATES 1019 The National Board of Fire Underwriters gathered statistics for 1910, relating to a considerable number of cities, with the following results : Cities. Population. Loss per capita. United States 297 29,996,720 $2.39 England n 2,335.847 .44 France 8 4,392,529 .92 Germany 13 5,616,822 .99 Ireland 2 657,680 .45 Norway 1 244,000 25 The average annual loss by fire in the United States for the past ten years has been approximately $225,000,000,^^ or about $2.50 per capita. The average annual loss in the European countries during the same period is stated by Mr. Roger W. Babson" to be less than fifty cents per capita, or approximately one-fifth that of the United States. No comparison of rates prevailing in United States with those prevailing in European countries is of practical importance unless taken in connection with fire losses. A comparison of rates to be of value must then take cognizance of conditions, and compare states and cities similarly situated with respect to the fire hazard, or failing that, to make corrections for the risk involved. While the conditions vary in the several states, it may prove of value to make some comparisons, carefully noting in connection with the rates, the relative hazards as shown by the annual fire losses. For this purpose the following states have been selected: Illinois, Iowa, Massachusetts, Michigan, New Jersey, New York, Texas and Wisconsin. To show rates and losses in an area chiefly urban composed largely of slow-burning or fire-proof construction, and protected by a well-equipped and efficient fire depart- ment, the District of Columbia is included. Table I shows for the selected states and the District of Columbia : 1. The total insurance written (a) for each of the years from 1909 to 1913, (b) for the five year period 1909-1913, and (c) for a period of approximately forty years — that is, from the first year for which the statistics were gathered to the year 1913 inclusive. 2. The total premiums received for the corresponding periods; and — 3. The total losses on account of fire for the same period. From this data the following rates have been calculated : (a) The average premium rate in dollars per hundred dollars insured ; (b) The average burning rate in cents per one hundred dollars insured. (c) The ratio of losses to premiums, expressed as a percentage. "Ibid p. 13; "N. T. Times, Mar. 24, 1912. 1020 EFFICIENCY AND ECONOMY COMMITTEE. TABLE I Ratio of ^*' Risks Pr*ml,,«,c T ». ^ ^-OS* Loss tO 1909 02a692,811 $120,527.239 $ 60.223.423 $120 "i^ ^ ^^^-^^ $46,398.382.602 $547.704,869 $264,034,929 $U5 ■:57 lil IOWA d 1^::: * ^i' $8,927 $2,501/ $1.83 51 28.8 1911 fSi 7,464 3,186 1.38 51 42.6 1913 ... 6S2S 7m? ^'IIS "'^ ^ 57.9 °^'^-^ 7.012 4,327 1.07 65 61.7 ^^^^^ $ 2,746.5 $ 36.431 $7^ $121 62 IT '*^°-"-- $"'2071 $ 175.266 $HiT $IS ^ li:i M ASSACH USETTS g S :::::::: 'if 'il| »|.| 'S ii Ul ''^^^ H534 9,191 .98 62 63.4 Z'"^" ^-^^^ 68.135 1^1 ~i illil ^^2-13* 39.065 397,960 206,351 T^ sT" lli MICHIGAN! 19^ MrIL ^ l^^. H'2'8 $117 59 58.7 ^^2.2^ j8.203* 4,404 .93 50 50.7 llii ,?J^.7 8:649 5,231 1.04 58 61.3 ^^^ ^'^"2.8/ 9.236* 4,998 1.12 54 53.0 ^'" l'320-8/- 9,245i 5,037 1.01 54 60.3 ^^-^^ ''•870.2 53702 "^m UO 5s7 IT '^='°-" ",863. 196. iM~ lii ^ir; In Cents per $100 at risk ^Insurance Age, October, 1914 «In Millions of Dollars In all tables except Illinois /In Thousands of Dollars in all tablet ^t^^Lviir- ^Insurance by States, 1914 ^''''^^^ Hlmois. ABoston fire not lnclnd«d. Year Risks 1909 $ 1,046 1910 1,114 1911 1,189 1912 1.263 1913 1.274 • 5,886 1876-13 21,140 1909 $ 5,369 1910 5,682 1911 5,554 1911 5,835 1913 7,099 29,539 1873-13 152,627 1909 $ 598 1910 643 1911 669 1912 653 1913 770 1909-13 3,333 1865-13 10,380 1912 $ 800 1913 876 1912-13 1,676 1909 $ 70S 1910 545 1911 566 1912 713 1913 814 1909-13 3,343 1869-13 14,190 FIRE INSURANCE RATES $ 53,500 184,000 24,830 90,000 $ .91 $ .88 227,750 1,102,000 115,500 567,750 $ .77 $ .72 TEXAS $ 45,750 159,250 32,250 99,500 TEXAS $ 9,840 10,000 19,840 $ $ 8,450 5,200 13,650 $1.37 $1.53 $1,23 1.15 1.18 35,750 187.500 15,333 93,000 1.07 1.32 iReport Insurance Commissioner, 1910-1914 .;Gro8s Amount at risk *Net Premiums /Gross Premiums wStatistics from Insurance Age, Oct. 1914, unless otherwise noted. ^Average of yearly average burning ratio '>Texas Ins. Board — Combined Classification totals. 1021 Ratio of Loss Losses to Premiums Losses Rate Ratio Premiums NEW JERSEY m 10,000 $ 3,500 $ .95 zz 35. 10,000 4,750 .99 42 46.5 10,700 4,330 .90 37 41.5 11,300 6,250 .89 49 56.2 11,500 6,000 .90 41 51.6 42 42 35.7 31 96 % 105 60 81 46 65 46.2 52.1 NEW YORK • $ 43,500 $19,750 $ .80 2,7 45.5 45,500 21,000 .80 Z7 46. 44,000 25,750 .79 46 58.3 46,750 26,000 .80 44 55.6 48,000 23,000 .67 32 48.2 50.8 51.5 8,750 $ 6,500 $1.44 110 7^2 8.750 6.000 1.36 92 67.9 8,750 6,000 1.32 89 68.5 9,500 8,250 1.47 120 85.8 10.000 5,500 1.30 7Z 55.7 70 62.5 85.9 52.0 68.8 WISCONSIN 7,000 $ 3,000 $ .98 41 41.1 6,750 3,750 1.23 66 55.8 6,750 3,333 1.20 60 50.7 7,250 2,750 1.02 37 38.2 8,000 2,500 .98 30 33.1 43 49.6 1022 EFFICIENCY AND ECONOMY COMMITTEE. DISTRICT OF COLUMBIA ' 1909 $ 133 $ 670 $ 200 $.50 IS 31 1910 138 670 250 .48 18 37 1911 135 650 440 .47 32 67 1912 130 630 390 .48 30 62 1913 142 710 290 .49 20 41 1909-13 678 3,330 1,580 $^49 23 47~ 1883-13 ' 2,553 15,000 5,890 $~59 23 '^T In order to show more clearly the fire insurance rate situation in Illinois, three tables have been prepared from the information con- tained jn Table I. These tables are : Table II, which shows the bum- rate for each of the geographical areas, and the relative position occu- pied by Illinois in the group. Table III, which shows the premium rate m each area, and Table IV, which shows the profits to the com- panies derived from the insurance written in each of the areas. TABLE II CENTS BURNED PER $ioo INSURED 1 r»- * ^ 1^^^^ ^« 1909-1913 Period Approx. 40 yrs. 1. DistCol. 20 1. Dist.Col. 23.2 1. Dist. Col. 23 %- }y'^^??sin 30 2. New York 35.7 2. New York 31 3. New York 32 3. New Jersey 42 3. New Jersey 42 c vl-T:'^"^^ i^ '^- Wisconsin 46 4. Massachusetts S3 5. Michigan 54 5. Massachusetts 54.8 5. Illinois 57 6. Massachusetts 62 6. Michigan 55 6. Michigan 64 7. Illinois 62.9 7. Illinois 60 7. Wisconsin 65 I- ip^wa 65 8. Iowa 62 8. Iowa 66 9 Texas 7Z 9. Texas 96 9. Texas 96 The United States, 1890-1907.^ 63 TABLE III CENTS PAID PER $100 INSURED ^^^^ 1909-1913 Period Approx. 40 yrs. I' M '*• ^\ 1? I' P^^t. Col. 49 1. Dist. Col. 59 2. New York 67 2. New York 77 2. New York ^ 3. New Jersey 90 3. New Jersey 91 3. New Jersey ^ sfensr"' 08 i- ^,^^^^^^\^setts 98.7 4. Massachusetts 101 1' T*;.^sc?"sin 98 5. Wisconsin 107 5. Illinois im 6. Michigan 101 6. Michigan 110 6 Michigan 123 STexaT V4s Wi"'"'"' ii^. 7. Wisconsin 132 «. lexas 130 8. Iowa 133 8 Texas l'?'? 9. Iowa 174 ^9. Texas ^ 137 9.- Iowa {56 The United States, 1890-1907, a ni TABLE IV. CENTS SAVED PER $100 RECEIVED ion ,,^/^^ .«-., ^ y^2ir Period 1 wr • ..^ 1909-1913 (Approx) 2 Di's't'col" ^'^ \ New Jersey 53.8 1. Dist.Col ^^ 63.1 i \:r ^r\ 5^ 2. Iowa 53.2 2 Iowa ';6 2 3. New York 51.8 3. Wisconsin 53 t UUnois ,18 tm^nolr''' ^1 ^•f?^?^^- 52.6 4.Wi:c"nsin loA 6 Texas ^1 a m ^''^^ 1 52i ^- ^^^ York 48.5 7 MkhLn 1^7 7 Ji-T-^^''^ f?'2 6. Massachusetts 48.2 8 Iowa f?(\ «m'^'^?" 15. 7. Michigan 48.1 I- Massachusetts 11 I ^e^^T'"^^"^ 3"^-' I K^^^^^ 3^7^! The United States 1890-1907.^ 43.2 H«ss, H. M. Philosophy and Method of Operation of the Analytic SyBtem. p. 15. FIRE INSURANCE RATES 1023 From an examination of Tables II, III and IV it will be noted: 1. For the forty-live years during which the insurance statistics have been gathered in the state, 57 cents worth of property has been burned and paid for by the insurance companies for every $100 insured. That for the last five years 60 cents worth has been burned and paid for; and that for 1913 the burning ratio was 62.9 cents per $100. This showing is better than the average for the United States, 1890-1907, but compares unfavorably with the fire loss in the District of Columbia, New York, New Jersey and Massachusetts, for the total period, and with District of Columbia, New York, New Jer- sey, Wisconsin, Michigan and Massachusetts for the past five years. From these tables it would seem that the fire loss in the state is unnecessarily high and steps should be taken to ascertain the causes and apply the proper remedy or remedies. 2. The average rate paid for insurance for the 45-year period is $1.15 per $100 insured. It will be noticed that Illinois occupies a middle position in the selected group, and the same relative position in rates that it does in the fire loss. While, however, the fire loss is on the average a little below that of the United States, the average rate is somewhat. higher. In the face of a steadily increasing fire loss, it is of course unlikely that the premium rate will fall by voluntary action of the companies writing the insurance. While other states have been gradually reducing their fire loss, or burning ratio, and as a result their average premium rate, Illinois shows an increasing burning rate, and a stationary premium rate. For the last five years and for the year 1913, in both burning ratio and premium rate, Illinois has dropped to seventh place, only Iowa and Texas showing a more unfavorable condition. " 3. Table IV shows the proportion of the premiums received which have been retained by the companies. It may be desirable to note in this connection that out of the premiums received the insurance companies pay — first, the fire losses, and, second, the expenses of carry- ing on the business. Whatever is left after paying the fire losses and expenses goes to the proprietors of stock companies in the form of increased surplus and dividends, and to policy holders of mutual com- panies as surplus or in return premiums, often erroneously called divi- dends. For the whole United States, during the period 1887-1907, for every dollar paid into the insurance companies, 56 cents was burned and 44 cents was retained by the companies. The 44 cents was used to pay expenses, accumulated a "safety fund" and the remainder was paid out in dividends. According to the report of the Joint Committee of the Senate and Assembly of the State of New York,^^ published in 1911, the 44 cents was divided up as follows: "Page 91. ,!,! 11 fi 1024 EFFICIENCY AND ECONOMY COMMITTEE. Salaries, rent and general administration 7.5 cents Commissions to agents 21 " Taxes 25 " Special agents — salaries and expense . . . 3 5 " Inspections— local boards *.'*.* 1*5 " Printing — postage 2.00 " Total expense 33.5 *' Total burning 55 q " 94 5 " Net underwriting profit 5,5 " This net profit is, it should be observed, a net saving ouT^every dollar received m premiums. To find the rate of profit on the capital invested it is necessary to compare the total net annual savings with the capital invested. ^ on./'"'* ^^^ forty-five year period the rates enforced by the fire insur- ance companies in Illinois, uncontrolled by the State, show a saving TTn> i Q.P.'''"^""''; '''T''^'^ considerably above the average for the United States for the shorter period 1890-1907. And in only two of the selected areas viz.. District of Columbia and Iowa, have the insur- rTcdvedTrfl r" '"^^"^ ^ }^'^'' proportion of the premiums received. I^or the five-year period, as well as for the year 1913 Illinois occupies the middle position, four areas being more profitable to the insurance companies and four less so. In general, the State of Illinois mniernnf? ^"^ '"^ ^f^^'T ^ ^^'^^^^^rMe field for insurance com- panies not because of a decrease in the premium rate, but owing to a steady and persistent increase in the fire losses. This is a serious situation and merits the attention of all property owners, fire insur- ance companies, the state legislature and the state official, especially the Department of Insurance and the State Fire Marshal's office.^« COINSURANCE Coinsurance is best defined by a quotation from the old French clause relating to that feature of insurance. It states that • . If at the time of the fire the value of the objects covered bv the ooHcv "s h?v?i'?emlineH T" '"" -'"^^^ of the insurance! the a'ssur'ed is^onsidere^ iSSIiilPlssis method of compiling thi results in IS 1^ ^^^^^^ ^"^ especially in the Owini,' to the laS of nifnrm t.oJh«i^? ^^^^® ^^Ji *^® summaries generally presented, the vkriVons £t are Sfte^fo^n 'f^^^^ to say nothing of has little conlidence in the tible^ !<^ f.Tr^nn^L-ffi^^"'^ ^1 '^^ ^^^'^ S*^*^' ^^^ writer positions of the several states in « mnlf i^^il^' ' ^^^^^P^ as showing tendencies and cited to illustrated The state of Vh"^^^^^ f^.l^l?^ example may be amount at risk written ea?hyeLFi?thryeaJs 1010^012^^?^'^"^.!.^^'''^*"^ *^® °f' only are reported. For the years IW) nn/ Toil ?i2' «?J^' ^^^^' ^^^ ^F^^^ amounts parative purposes. securing statistics that would be of value for com- FIRE INSURANCE RATES 1025 The European countries generally have written insurance from the earliest times under the coinsurance principle. The practice in the United States, on the contrary generally follows the opposite practice, and in some of the states coinsurance is prohibited by law. The effect of coinsurance is to make the owner a coinsurer with the insurance company, wherever the property is only partially insured. When, how- ever, the property is fully covered, the entire risk is undertaken by the company whether the loss is partial or complete. Thus, suppose A insures his property worth $10,000 for $5,000 and the policy contains the coinsurance clause. If the loss is total A recovers $5,000, the face of the policy. If, however, the loss is only $500 the company is responsible for that proportion of the actual loss denoted by the relation of the face of the policy to the value of the property. In this case the company is responsible for one-half the loss, or $250. If the policy does not contain the coinsurance clause the company is responsible for the total loss up to $5,000. The coinsurance clause IS, therefore, of importance only where the loss is partial; but most losses are partial. The New York Report has an interesting com- pilation bearing upon this subject. For a certain class of buildings, for every $100 worth of property insured, On the average, out of every 100 fires — 82 average $2 loss, or a total of $164 6 (( 14 « (( (( tt tt 84 3 it 25 (( <( t( tt tt 75 2 *i 35 (( (( ti tt tt 70 *i 45 (( (( tt tt tt 45 tt 55 (( tt tt tt tt 55 €t 65 (( tt tt tt tt 65 *t 75 (( tt tt tt tt 75 ti 85 (( it tt tt tt 85 2 tt 99 (( tt tt tt tt 198 100 A total of $916 If all these houses had been insured for their full value — $100 each — the loss to the companies would have been $916, or 9.16 per cent, of the face value of all the policies Issued. If, on the other hand, each one had been insured for $10 the total amount at risk would have been 10 times $100, or $1,000, and the losses to the insur- ance companies would have been : 82 losses at $2 equals $164 18 " " 10 " 180 $344 or 34.4 per cent, of the amount at risk. That is, without coinsurance the rate should be a degressive one, increasing as the amount carried on any property decreases. The rate of degression, worked out on the basis of actual experience, is, accord- ing to the New York investigation, as follows :^^ ^"Report of Joint Committee, Feb. 1, 1911, p. 85. 1026 EFFICIENCY AND ECONOMY COMMITTEE. FIRE INSURANCE RATES 1027 i' ' »;!■ 1 Insurance 10% of value Rate 34% 20" « 24" 30" «< 20" 40" « 17" 50" « 15" 60" M 13" 70" ti 12" 80" tt 11" 90" M 10" 100" (( 9" In other words, in order to get an equitable adjustment of the burdens of the cost of insurance, the rate should be based upon the two following principles : 1. It should vary with the hazards of each building insured; 2. It should also vary with the amount of insurance carried, unless the coinsurance principle is adopted. In Illinois as a general principle the coinsurance clause is not in use, neither is there any provision for a degressive rate varying with the amount of insurance carried. The result is to favor the wealthy man and the larger corporations. Both of the latter can afford to take a certain share of the risk themselves. The poor man and the smaller business cannot afford to take such risks. Consequently the first two classes insure less fully and are in most cases — that is, in 82 out of every hundred — amply protected, and, carrying less insurance, their expense on account of fire protection is smaller. The last two classes ought to, and probably do, carry fuller protection and, paying the average rate, their expense for protection against the fire hazard is necessarily heavier. The coinsurance system ought to be provided for by legislation, but since there seems to be an unwarranted prejudice against this equitable principle, the companies should be .required to make their rates degressive, increasing as the face of the policy decreases, the rate of degression to be determined on the basis of actual experience of the state in regard to partial and total losses. It may be noted in connection with coinsurance that it is the normal method in European countries and it is probable that this condition partially accounts for the greater attention to fire protection, the lower burning ratio and the reduced cost of insurance. SUMMARY AND CONCLUSIONS Fire insurance and insurance covering property risks generally is a business that requires cooperative action for rate-making purposes on the part of the companies undertaking to carry the various hazards and properly to protect the property owners. Otherwise the rates are unstable and discriminatory, and changes in rates and discriminations are likely to handicap unduly the small property owner and favor those who are better able to protect themselves. Moreover cooperation in rate-making is a very great economy, since one "book of estimates," as the rate schedules are often called, may be used by all the companies. Indeed it is practically impossible for the small companies to undertake to enter the business of writing insurance where they are obliged to prepare their own rate books. But rate-making by cooperative action permits and encourages monopolis- tic rates. This is especially true of commercial districts, where mutual companies generally find it undesirable to operate. On this account cooperative agencies should be recognized by law and required to operate under the supervision of the State Insurance Superintendent. The primary object of schedule rating is to adjust the premium to the risk. Where this is scientifically done there is no discrimination in rates. Each property owner pays the average rate for his class of property risks. The law, therefore, should assist the cooperative rating agencies by prohibiting discriminations and authorizing the Insurance Superintendent to make investigations and order changes wherever it is found that discriminations actually exist. Whether the State Insur- ance Superintendent should be given the power to raise or lower rate schedules as a whole is as yet a controverted question. The Kansas law, enacted in 1909, has recently been sustained by the Supreme Court,^^ and such power may, therefore, be legally granted. It may, therefore, be concluded : First: The average rate paid for fire insurance in the State of Illinois is higher than in the United States as a whole and higher than in some states even where the fire loss has been relatively greater. Second : The burning rate in Illinois, while higher than it ought to be, has been lower than in the United States as a whole and lower than in some of the states where building construction is of the same general character. Third: Rates have been made in Illinois for many years by cooperative associations without any supervision by the Insurance Department. Fourth: Rate-making by cooperative associations of companies writing insurance in a given state is not only desirable, but necessary for the economical making of rates ; and such rate-making is essential for equity as between individual risks or between similar classes of risks, unless the rate-making function is delegated to the Department of Insurance, as in Texas. Fifth: Rate-making by the state through the Department of Insurance is as yet in the experimental stage. If the state should make •rates for insurance companies it ought also to make rates for railroad corporations and all forms of public utilities. Regulation of rates rather than the making of rates seems to be the wiser course at the present time. Sixth: Rate-making associations are controlled by insurance companies. They should be required to report to the State Insurance Department and should be subject to regular examinations as insur- ance companies are. Seventh: Such associations by whatever name called should be prohibited from making discriminatory rates: (a) discriminating between risks of the same character in the State of Illinois; 22German Alliance Insurance Co. vs. Ike Lewis, as Superintendent of Insurance for State of Kansas, April 20. 1014. 1028 EFFICIENCY AND ECONOMY COMMITTEE. (b) discriminating between classes of the same general character in the State of Illinois ; or (c) discriminating against Illinois risks, where compared with risks of the same general character in other states. Eighth: The State Department of Insurance should be clothed with sufficient power by an amendment to the insurance law to enforce effectively the above recommendations. Ninth : Since the department would be clothed with considerable discretionary power, it would probably be wise to put the general super- vision of rates under a commission, whose chairman should be the chief executive officer, or the Insurance Department should be united with the other regulating departments for purposes of control, retain- ing the Insurance Superintendent as executive officer. Tenth: Coinsurance should be permitted by law; and where policies are written without coinsurance the rates should be adjusted as explained in the section on coinsurance, so that persons protecting their property most fully would be required to pay the lowest rate, the rate progressing as the amount of the insurance carried grows less. In order to prevent the emergence of the moral hazard, as the amount at risk approaches the value of the property insured, the rate ought to be degressive until approximately eighty per cent, of the value of the property is covered, and after that point is reached the rate should become a fixed one, or increase in some geometric ratio as the face of the policy approaches the value of the property. COMPARATIVE STATEMENT OF APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY, STATE OF ILLINOIS COMPILED BY THOMAS P. WATERS :> It :[■■((- / ■m COMPARATIVE STATEMENT OF APPROPRIATION'S, 1909, 1911 AND 1913 (From Auditors' Appropriation Statements.) RECAPITULATION. • General Assembly and State 1909 1911 1913 Officers $2,200,000.00 $2,400,000.00 $2,600,000.00 Legislative 189,800.00 187,400.00 302,069.10 Judiciary 136,531.64 135,230.00 167,553.72 The Governor 161,400.00 210,100.00 167,275.90 Civil Service Commission 20,760.00 38,600.00 73,308.00 Lieutenant Governor 6,800.00 6,800.00 6,800.00 Secretary of State 356,120.00 403,537.30 667,163.83 Attorney General (Including Inheritance Tax Office) 232,040.00 290,613.25 483.103.21 State Board of Contracts 284,000.00 276,000.00 498,680.00 Finance Administration 248,000.00 333,500.00 457,700.00 Military Administration 904,942.00 1,272,475.83 1,784,495.65 Control of Corporations 152,950.00 545.670.00 759,417.60 Public Health and Safety 215,500.00 548.330.00 599.039.25 Labor and Mining Bureaus 185,980.00 275,764.45 348,685.00 Agricultural Interests 325,480.00 669,760.00 604,940.00 Public Education 5,659,880.49 9,369,872.12 12.416,41424 Charities 6,145,315.00 9,669.258.65 11.537,876.64 Penal and Reformatory 2,113,900.00 2,074.560.00 1,719,809.64 Public Works, Parks and Monu- ments 291,850.00 918,653.15 2,666,317.90 Special Appropriations 41,746.71 32,050.74 51,036.25 Total $19,872,995.84 $29,658,175.49 437.911.757.93 ill J oThis total (1913) is ^,700 less than the total shown in the Appropriation Statement. ,"t- ■t ;, •tfo ■ 1032 ' EFFICIENCY AND ECONOMY COMMITTEE 1909 1911 GENERAL ASSEMBLY AND STATE OFFICERS $2,200,000.00 $2,400,000.00 General Assembly and Legislative Committees. Copying Laws and Journals $ 300.00 $ 300.00 Express and Postage 4,000.00 4,000.00 Committee Expenses 22,500.00 84,100.00 Employes 130,000.00 80,000.00 Jncidental Expenses 33.000.00 19,000.00 X . , ,. ^ , „ $189,800.00 $187,400.00 Legislative Reference Bureau JUDICIARY. Supreme Court. Salaries $30,291.64 $32,400 00 Incidental Expenses 25,000.00 20,000.00 Purchase of Books 10,000,00 10,000.00 Costs-Case People vs. Economy Light and Power Co $65,291.64 $62,400.00 Sumpreme Court Reporter. , ^alary .. $1,440.00 $1,440.00 Expenses, Printing, etc 2,400.00 2,400.00 $3,840.00 $3,840.00 Appellate Courts— First District. Salaries $7,600.00 $7,600.00 f^^t 21,000.00 21,000.00 Incidental Expenses 4,000.00 4,00000 Purchase of Law Books 2,000.00 2,000 00 Repairing Books 500.00 Furniture and Carpets 750.00 750 00 Filing Cases 225.00 225.00 $36,075.00 $35,575.00 Second District Salaries $6,000.00 $6,000.00 Incidental Expenses 5,975.00 5,900.00 Purchase of Law Books 1,200.00 1,200.00 Repairing Books 600.00 800.00 Repairs and Improvements 1,400.00 $13,775.00 $15,300.00 . Third District. " Salaries $4,800.00 $4,800.00 Incidental Expenses 2,000.00 2,415.00 $6,800.00 $7,215.00 1913 $2,600,000.00 $ 300.00 4,000.00 161,619.10 85,000.00 26,1:0.00 $277,069.10 25,000.00 $36,720.00 20,000.00 10,000.00 3,350.00 $70,070.00 $1,440.00 2,400.00 $3,840.00 $13,600.00 34,385.00 8,000.00 3,000.00 750.00 $59,735.00 $ 6,000.00 5,000.00 1,200.00 1,000.00 1,380.00 $14,580.00 K800.00 2,000.00 $6,800.00 APPROPRIATIONS Fourth District 1909 * Salaries $6,000.00 Incidental Expenses 3,500.00 Purchase and Rebinding Law _ Books 1,250.00 Repairs and Improvements THE GOVERNOR. Executive Office. Salaries $34,400.00 Incidental Office Expenses 12,000.00 Expense, Audit Qerk 3,000.00 Recarpeting Contingent Fund. Unforseen Expense Examination of Books, etc., I. C. Cost and Expense, Appeal People vs. E. Lt. & Power Co. $10,000.00 80,000.00 Executive Mansion. Care and Maintenance Repairs and Improvements $18,000.00 4,000.00 Lieutenant Governor $6,800.00 Secretary of State. Office. Salaries $222,120.00 Office Expense 10,000.00 Expense, Corporation Dept 7,000.00 Expense, Foreign Corp. Dept... 10,000.00 Numbers, Tags, etc., for Auto- mobiles Office Supplies Postage, Freight, etc Traveling Expenses, Investiga- tors Deficiency — Aut. Dept Rent, Light, etc. (Chicago) 1911 $ 6,000.00 3,000.00 1,900.00 $10,750.00 $10,900.00 Total— Judiciary $136,531.64 $135,230.00 $34,400.00 16,000.00 3,000.00 3,000.00 $49,400.00 $56,400.00 $10,000.00 62,600.00 40,000.00 $36,000.00 5,100.00 $22,000.00 $41,100.00 Total Governor $161,400.00 $210,100.00 Civil Service Commission. Salaries $ 7,760.00 Expenses 13,000.00 $16,600.00 22,000.00 $20,760.00 $38,600.00 $6,800.00 $230,720.00 10,000.00 5,000.00 10,000.00 91,000.00 1033 1913 $ 6,000.00 3,000.00 1,600.00 1,928.72 $12,528.72 $167,553.72 $34,400.00 16,000.00 3,000.00 3,000.00 $56,400.00 $10,000.00 49,875.90 5,000.00 $90,000.00 $112,600.00 $64,875.90 $30,000.00 16,000.00 $46,000.00 $167,275.90 $32,780.00 40,600.00 $73,380.00 $6,800.00 $262,360.00 10,000.00 • 3,000.00 150,000.00 1,000.00 58,000.00 3,600.00 87,203.83 2,800.00 $249,120.00 $346,720.00 $577,963.83 1034 EFFICIENCY AND ECONOMY COMMITTEE Heating and Lighting, Fuel and Repairs Operating Light Plant. 1909 1911 1913 $21,000.00 $18,000.00 $29,000.00 5,000.00 3,000.00 2,000.00 Incidental Expenses. Secretary- of State Repairing State House , Purchase of Flags Printing Blue Book Senate and House Chambers. Filing Cases, etc Elevators and Toilets Supreme Court Reports (Pur- chase of) Total, Secretary of State Attorney-General. Office Salaries $63,440.00 Office Expenses Legal 'Service Special Counsel. I. C. Case.... Exp. Case, People vs. 111. Steel Co Legal Service — War Claim Taxes — Idaho Lands Suits in U. S. Courts Exp., Submerged Lands 10,000.00 70,000.00 55,000.00 3,000.00 12,400.00 5,000.00 Inheritance Tax Office. Salaries $ 9,600.00 Rent and Expenses 3,6000.00 Special Investigation Office Expense Cost and Exp., Disbarment Pro $26,000.00 $21,000.00 Total, Attorney-General $232,040.00 State Board of Contracts. Printing Paper and Stationery. $ 92,000.00 Public Printing 120,000.00 Extra Help, account of Printing 7,000.00 Binding 65,000.00 Salary of Secretary of Board Printer Expert Office Expenses and Postage 10,617.30 $53,700.00 $25,817.30 $27,300.00 $10,000.00 $80,000.00 14,000.00 "7o,m.66 4,513.25 48,000.00 25,000.00 $25,200.00 8,900.00 12,000.00 3,000.00 $120,000.00 100,000.00 6,000.00 50,000.00 $31,000.00 $17,000.00 $10,000.00 $10,000.00 5,000.00 3,000.00 2,000.00 200.00 200.00 200.00 2,000.00 2,000.00 2,000.00 29.500.00 . • •••••■•■•••a • 30,000.00 $44,200.00 $14,000.00 $356,120.00 $403,537.30 $667,163.83 $110,200.00 16,000.00 "i36,'6i5!26 70,000.00 38,548.01 $218,840.00 $241,513.25 $371,363.21 $ 73,400.00 13,340.00 16,000.00 5,000.00 4,000.00 $13,200.00 $49,100.00 $111,740.00 $290,613.25 $483,103.21 $205,000.00 210,000.00 ''7o,m.bo 600.00 12,480.00 600.00 Total State Board of Contracts. .$284,000.00 $276,000.00 $498,680.00 APPROPRIATIONS FINANCE ADMINISTRATION. 1909 1911 Auditor of Public Accounts. Salaries $ 48,600.00 $163,500.00 Office Expense 9,000.00 9,000.00 Expense, etc., Registered Bond 30,000.00 4,000.00 Office Furniture 4,400.00 Traveling Expenses 23,000.00 Exp. Acct. Examination of De- partments 5,000.00 Rent and Furniture (Chicago) Cost of State Suits 1,000.00 1,000.00 $93,000.00 $205,500.00 State Treasurer. Salaries $ 48,000.00 $ 64,500.00 Office Expense 5,000.00 8,000.00 Expense, Collecting Inheritance Tax 25,000.00 25,000.00 Expense, Premiums Employe's Bonds 2,000.00 2,000.00 Furniture 2,000.00 500.00 Expense, Handling Collateral Expense Account, Registered Bonds 8,000.00 Expense, Collecting Interest On Public Funds 30,000.00 8,000.00 $120,000.00 $108,000.00 State Board of Equalization. Salaries and Expenses $20,000.00 $20,000.00 Commissioners — Tax Revision, Expenses, Reports, etc $15,000.00 Total, Finance Administration. . $248,000.00 $333,500.00 MILITARY ADMINISTRATION. Adjutant General. Salaries $20,280.00 $20,880.00 Office Expense 3,000.00 3,000.00 $23,280.00 $23,880.00 National Guard. Ordinary Expenses $700,544.00 $ 779,834.00 Uniforms 81,495.00 11,534.30 Emergency Fund 50,000.00 50,000.00 Expenses, U. S. S. Nashville.. 7,673.00 Armories and Improvements... 41,950.00 402,212.53 Expenses, Torpedo Boat 5,015.00 $881,662.00 $1,248,595.83 Total, Military Administration $904,942.00 $1,272,475.83 1035 1913 $215,300.00 16,500.00 4,000.00 1,700.00 23,000.00 20,000.00 4,000.00 1,000.00 $285,500.00 $ 65,200.00 8,000.00 60,000.00 2,000.00 2,000.00 7,000.00 8,000.00 $152,200.00 $20,000.00 $457,700.00 $20,880.00 3,400.00 $24,280.00 $ 779,834.00 12,000.00 50,000.00 ""9i8,'38i!65 $1,760,215.65 $1,784,495.65 1036 EFFICIENCY AND ECONOMY COMMITTEE It. I- CONTROL OF CORPORATIONS. Public Utilities Commission. 1909 1911 1913 Expenses, etc R. R. and Whse. Commissioners. Salaries $20,400.00 Office Expenses 8,000.00 Schedules 2,000.00 Maps 4,000.00 Investigation of Rates Expense of Suits 12,000.00 Fees of Experts Expense of Commissioners Printing Grain Inspection Dept. (Chicago). Salaries Rent and Light Office Expense Miscellaneous Expense Grain Inspection Dept. (E. St. Louis). Salaries Rent and Light Office Expenses Grain Inspection Dept. (Joliet). Salary Grain Inspection Dept. (Kankakee). Salary Grain Inspection Dept. (Decatur). Salary Insurance Department. Salaries Office Expense Prosecutions and Legal Services Expense, Commissioners. (At- tending National Convention) For Uncollected Examinations. . Printing Per Diem of Examiners For Examinations and Investi- gations $ 61,400.00 13,900.00 20,000.00 250.00 2,000.00 2,000.00 7.000.00 $43,400.00 $45,120.00 6,000.00 11,000.00 4,000.00 2,000.00 4,000.00 4,000.00 4,000.00 3,000.00 2,000.00 3.600.00 5.000.00 . 8,000.00 9,000.00 4,000.00 3,000.00 $46,400.00 $80,400.00 $280,220.00 16,000.00 10,000.00 $32,400.00 1,000.00 1,200.00 $34,600.00 $ 72,200.00 14,000.00 14,000.00 250.00 2,000.00 2,000.00 10.000.00 10,000.00 $106,550.00 $124,450.00 $80,720.00 $312,917.60 18,000.00 14,150.00 20,010.00 $306,220.00 $365,077.60 $33,480.00 "*2,*466!66 $35,880.00 $1,800.00 $2,400.00 $5,040.00 $ 92,800.00 17,450.00 14,000.00 250.00 ***'4,666!66 20,000.00 $148,500.00 Total, Control of Corporations.. $152,950.00 $545,670.00 $759,417.60 APPROPRIATIONS PUBLIC HEALTH AND SAFETY. 1909 1911 State Board of Health. Salaries $29,000.00 $29,000.00 Expenses, Various 93,500.00 142,500.00 $122,500.00 $171,500.00 Lodging House Inspectors. Salaries and Expenses $30,000.00 $50,200.00 Dental Examiners. Salaries $ 7,200.00 Expenses 4,500.00 $11,700.00 Board of Pharmacy. Salaries $20,560.00 Expenses 11,000.00 $31,560.00 Barbers' Examiners. Salaries $25,600.00 Expenses 8,650.00 $34,250.00 Examiners of Registered Nurses. Salaries $6,200.00 Expenses 3,840.00 $10,040.00 Food Commissioners. Expenses, Rent, etc $62,000.00 $110,400.00 Fire Marshal. Salaries $54,400.00 Expenses 54,700.00 $109,100.00 Illinois State Firemen's Assn. Printing, Expenses, etc $1,000.00 $1,500.00 Examiners of Architects. Salaries $6,300.00 Per Diem and Expenses of Members 5,600.00 Expenses :.. . 5,880.00 Examination Fees Withdrawn 300.00 $18,080.00 Total, Public Health and Safety $215,500,00 $548,330.00 1037 1913 $ 58,140.00 182,39425 $240,53425 $20,815.00 $ 8,200.00 5,850.00 $14,050.00 $22,400.00 11,000.00 $33,400.00 $11,200.00 8,420.00 $19,620.00 $ 6,600.00 3,660.00 $10,260.00 $100,600.00 $ 83,860.00 60,000.00 $143,860.00 $2,000.00 $ 5.400.00 4,000.00 4,380.00 120.00 $13,900.00 $599,03925 ill * 1038 EFFICIENCY AND ECONOMY COMMITTEE 1909 LABOR AND MINING BUREAUS. Commissioners of Labor Statistics. Clerk Hire and Expenses $22,000.00 Inspection of Private Employment Agencies. Clerk Hire and Expenses Free Employment Offices. """ Chicago (North Side). Salaries Kent and Expenses $4,600.00 4,500.00 $9,100.00 Chicago (South Side). Salaries $ 6,040.00 4,600.00 Rent and Expenses Chicago (West Side) ^^"« • $4,600.00 Kent and Expenses 3,6(X).00 $8,200.00 East St. Louis. " Salaries $2,640.00 Kent and Expenses 3,2(X).(X) $5,840.00 Peoria. Salary . $1,440.00 Kent and Expenses 3,000.00 $4,440.00 Springfield. ~~ S^Jf,^ ;-u: $1,440.00 Kent and Expenses 2,000.00 Furniture 320.00 $3,760.00 Rockford. Salary Rent and Expenses Furniture 1911 $18,000.00 $7,840.00 $4,800.00 4.500.00 $9,300.00 $ 6,240.00 4.600.00 $10,640.00 $10,840.00 $4,800.00 3,600.00 $8,400.00 $2,640.00 3,600.00 $6,240.00 $1,440.00 3.600.00 $5,040.00 $1,440.00 2,000.00 $3,440.00 Total, Free Employment Offices $41,980.00 $43,260.00 State Board of Arbitration. ^^P^s" $10,000.00 $10,000.00 1913 $22,155.00 $8,540.00 $5,000.00 4,500.00 $9,500.00 $ 6,440.00 4.600.00 $11,040.00 $5,000.00 3,600.00 $8,600.00 $2,640.00 3,600.00 $6,240.00 $2,160.00 2,850.00 $5,010.00 $2,640.00 2.000.00 $4,640.00 $2,240.00 2.000.00 200.00 $4,440.00 $49,470.00 APPROPRIATIONS 1909 Factory Inspectors. Salaries $14,000.00 Office Expense Inspectors' Expenses Rent and Light 10,000.00 20,000.00 4,000.00 Employers' Liability Commission. Expenses Occupational Diseases Commission. Clerk Hire and Expenses $15,000.00 State Mining Board. Salaries and Expenses $12,(XX).00 Mine Inspectors' Expenses 12,000.00 Miners' Examining Board. Salaries and Expenses . Mine Rescue Station Commission. Clerks, Equipment and Expense Mining Investigation Commission $25,000.00 Industrial Board. Salaries Expenses Total, Labor and Mining Bureaus $185,980.00 AGRICULTURAL INTERESTS. State Board of Agriculture. Salaries $16,040.00 Expenses 27,600.00 Aid of County Fairs 100,000.00 Buildings and Improvements Outstanding Notes Farmers' Institutes. Salaries Office Expenses Expenses — Speakers and Judges Expenses of Members Expenses of County Institutes. . Inspectors of Apiaries. Salaries 1911 $16,400.00 20,000.00 28,000.00 5,000.00 $48,000.00 $69,400.00 $1,264.45 $26,000.00 30.000.00 $24,000.00 $56,000.00 $60,000.00 $10,000.00 $ 14,400.00 37.600.00 120,000.00 215,000.00 $143,640.00 $387,000.00 $42,000.00 $55,000.00 $3,000.00 1039 1913 $24,320.00 10,000.00 32,000.00 10,000.00 $76,320.00 $25,400.00 24,000.00 $49,400.00 $7,200.00 $70,000.00 $10,000.00 $15,600.00 4aooo.oo $55,600.00 $275,764.45 $348,685.00 $ 21,400.00 42,600.00 170,000.00 10,000.00 85.000.00 $329,000.00 $10,000.00 $15,000.00 $ 5,800.00 2,000.00 3.000.00 6,000.00 6,000.00 12,000.00 12,000.00 10,000.00 10,000.00 10,000.00 14,000.00 15,000.00 15,000.00 $48,800.00 $4,000.00 h 1040 EFFICIENCY AND ECONOMY COMMITTEE State Horticultural Society. 1909 1911 Advancing Growth and Devel- opment $10,000.00 $10,000.00 State Dairyman's Association. Printing, Expenses, etc $5,000.00 $5,000.00 Ilinois Poultry Association. Printing, Expenses, etc $2,000.00 $2,000.00 State Bee Keepers' Association. Printing, Expenses, etc $2,000.00 $2,000.00 Milk Producers' Institute. Expenses, etc $1,000.00 $1,000.00 Live Stock Breeders' Association. Printing, Expenses, etc $ 1,000.00 $1,000.00 Commissioners to Investigate Tuberculin Test. Expenses $10,000.00 Live Stock Commissioners. Salaries $45,840.00 $50,200.00 Expense ... 11,000.00 12,000.00 rcr Diem and Expense of State Veterinarian 7,000.00 1,000.00 Damages for Animals Slaugh- tered 27,000.00 25,000.00 Total, Live Stock Commis- sioners $90,840.00 $88,200.00 Biological Laboratory. Salaries $ 8.000.00 $12,000.00 Purchase of Land 4,000.00 Equipment of Laboratory 6,000.00 23,666.66 Purchase of Hogs for Labora- tory 45,000.00 $108,840.00 $168,200.00 Veterinary Examiners. Per Diem and Expenses $2,100.00 Stallion Registration Board. Salaries and Expenses $33,460.00 Total, Agricultural Interests... $325,480.00 $669,760.00 PUBLIC EDUCATION. State School Fund. Salaries $ 380,800.00 $ 380,800.00 Expenses . 1,619,200.00 3,619,200.00 Interest on State School Funds 114,000.00 114,000.00 $2,114,000.00 $4,114,000.00 1913 $10,000.00 $5,000.00 $2,000.00 $2,000.00 $3,000.00 $50,280.00 10.000.00 25,000.00 $85,280.00 $ 12,800.00 "*i2,'666.'66 67,000.00 $177,080.00 $1,600.00 $22,460.00 $604,940.00 $ 380,800.00 5,619,200.00 114,000.00 $6,114,000.00 APPROPRIATIONS 1909 Superintendent of Public Instruction. Salaries $19,000.00 Office and Traveling Expenses 9,000.00 Completing Work, Educational Commission 5,000.00 Expense, Certifying Law Expense, Conducting Examin- ations Normal Schools. State Normal University. Ordinary Expenses Repairs and Improvements. Interest on College Fund . . . Training School Building... $166,000.00 29,500.00 12,987.12 Eastern Normal. Ordinary Expenses $122,000.00 Repairs and Improvements. . 12,500.00 Model School Building Northern Normal. Ordinary Expenses $162,000.00 Repairs and Improvements... For Training School Building Water Rents Equipment of New Building. Women's Dormitory 19,31225 75,000.00 1,500.00 Western Normal. Ordinary Expenses Repairs and Improvements. . Women's Building $120,000.00 11,000.00 Southern Normal. Ordinary Expenses $110,000.00 Interest on College Fund 12,987.12 Repairs and Improvements. . 7,114.00 Women's Building ! Heating Plant 1911 $28,800.00 9,000.00 5,000.00 3,500.00 $33,000.00 $46,300.00 $217,200.00 4,600.00 12,987.12 125,000.00 $146,000.00 8,500.00 75,000.00 $162,000.00 22,200.00 6,000.00 $130,000.00 10,500.00 75,000.00 $137,612.88 12,987.12 18,985.00 75,000.00 1041 1913 $46,800.00 12,000.00 1,000.00 3,600.00 $63,400.00 $260,000.00 87,000.00 12,987.12 $208,487.12 $359,787.12 $359,987.12 $160,000.00 5,000.00 20,000.00 $134,500.00 $229,500.00 $185,000.00 $180,000.00 12,500.00 125,000.00 $257,812.25 $190,200.00 $317,500.00 $140,000.00 8,500.00 10,000.00 $131,000.00 $215,500.00 $158,500.00 $160,000.00 12,987.12 17,500.00 *'* 56,666.66 $130,101.12 $244,585.00 $240,487.12 Total, Normal Schools $861,900.49 $1,239,572.12 $1,261,47424 I. 1042 EFFICIENCY AND ECONOMY COMMITTEE University of Illinois. 1909 1911 Maintenance, Equipment and PurcES^ o?Sf a^nd'T/ec- ^^'^^'^^^"^ $2,279,500.00 ImeTesrln^^Enfcent^und-- 'el'K ^''.'^'^^ Miners' and Mechanics^ InstUuie ^^'^'^ ^^'^"^ U. b. Gov. Appropriation SO.OOO.'OO * ' * m'm.QO 1913 $3,200,000.00 1,300,000.00 65,000.00 30,000.00 100,000.00 Scientific Investigation, State Geological Survey. Wey?''"^ ^""^ Expenses. . . . $50,000.00 Maps and Reports .* .' .* .' .* ;::::* [oOO 00 Study of Coal Mining. ...:::. ^'^'^ $2,448,500.00 $3,699,300.00 $4,695,000.00 $ 50,000.00 7,500.00 5,000.00 9,000.00 $50,000.00 7,500.00 10,000.00 9,000.00 State Entomologist. Expenses . . . $62,500.00 $71,500.00 $76,500.00 Laboratory Natural History. ^^P""^'^^ $16,000.00 Water Survey. Salaries Expenses $46,000.00 $54,000.00 $51,000.00 $16,000.00 $16,000.00 $10,000.00 %Asm'm $26,000.00 17,000.00 $10,000.00 Total, Scientific Investigation. .. .$134,500.00 Libraries and Museum. State Library. Salaries Purchase of Books .*..*.'* Expense, Extension Com- $45,000.00 $43,000.00 $216,500.00 $186,500.00 $10,400.00 4,000.00 mission -y /w. ^^ Furniture .. 3,000.00 $12,800.00 4,000.00 3,600.00 $14,600.00 4,800.00 8.840.00 1,000.00 Historical Library. Salaries Expense, Purchase of Books, $17,400.00 $20,400.00 $29,240.00 etc. $ 9,680.00 $ 6,200.00 $ 6,200.00 20,000.00 ^""'^"S 8.000.00 27,500.00 8,000.00 32,000.00 8,000.00 Natural History Museum. Salaries Expenses ...'.!. Books, etc. $37,680.00 $41,700.00 $46,200.00 $10,200.00 1,200.00 1,500.00 $12,000.00 1,600.00 3,500.00 $ 5,600.00 2.000.00 3,000.00 Total, Libraries and Museum. . .^^^'^•QQ $17.100.00 $10,600.00 ^^'^^•QQ $79,200.00 li^H^ APPROPRIATIONS Education Building Commission. Expenses 1909 1911 $5,000.00 1043 1913 $10,000.00 Total, Public Education $5,659,880.49 $9,369,872.12 $12,416,414.24 CHARITIES. Charities Commission. Salaries $27,200.00 Expenses 5,000.00 $ 9,800.00 15,500.00 $32,200.00 $25,300.00 Board of Administration. Salaries $32,800.00 Expenses 28,000.00 Repairs and Improvements Site and Plans for New Hos- pital Instruction of Adult Blind^ Relief Funds $ 48,260.00 6,988,148.00 674,700.00 500,000.00 10,000.00 8.000.00 Home Visitors. Salaries Expenses $11,000.00 $ 6,600.00 14,000.00 $11,000.00 $20,600.00 Anna State Hospital. Ordinary Expenses Repairs and Improvements.... Buildings and Other Capital Improvements Machinery and Live Stock.... Improvment of Grounds $475,000.00 40,500.00 20,000.00 4,500.00 4,000.00 $ 5,000.00 238,200.00 Chester State Hospital. Ordinary Expenses Repairs and Improvements. ... Miscellaneous, Equipment, etc., Chicago State Hospital. Buildings Improvements Machinery Repairs $80,000.00 4.000.00 2.400.00 $86,400.00 $4,000.00 $4,000.00 $110,000.00 "''i,"m66 Alton State Hospital. Buildings, Other Improvements and Supervision Purchase of Site, Plans (Re- appropriation) $ 8,200.00 15,500.00 $23,700.00 $ 51,360.00 7,151,337.42 781,300.00 10,000.00 61,565.18 $60,800.00 $8,229,108.00 $8,055,562.60 $ 6,800.00 10,000.00 $16,800.00 $133,392.35 62,881.92 2,000.00 2,400.00 $544,000.00 $243,200.00 $200,674.27 $500.00 $500.00 $755,66621 60,300.00 15,000.00 $111,000.00 $830,966.21 $205,000.00 295.119.19 $500,119.19 'l/ ■ -''y- f: 1044 EFFICIENCY AND ECONOMY COMMITTEE CHARITIES— (Cont.) Elgin State Hospital. Ordinary Expenses Buildings .*..*.*.* Repairs and Improvements!!!! i-ive Stock Farm Implements ...!!!!!"" Miscellaneous Equipment ! 1909 $425,000.00 56,000.00 57,000.00 2,000.00 2,500.00 5,500.00 1911 1913 $95,000.00 29,000.00 4,000.00 $151,500.00 3,800.00 Jacksonville State Hospital. Ordinary Expenses Repairs and Improvements.'!.'! Live Stock and Improvements, furniture and Equipment.... isuildmg and Land . . . $548,000.00 $131,800.00 $151,500.00 $450,000.00 60,000.00 1,500.00 3,000.00 55,000.00 $15,500.00 1,566.66 44,500.00 $13,450.00 7.740.00 Kankakee Stat*' '-^ospital. Svl'^St'^ck^'!^""!" ^ 800,000.00 ^ufuY^ ^"^ improv'e'men'ts!!!! ""97,666.66 ^uildmgs 70 om Equipment, Furniture, etc. 7 00000 Psycopathic Institute ; ! ! ! 28;500.00 $569,500.00 $61,500.00 $21,190.00 $7,350.00 6,600.00 33,000.00 10,700.00 $4,500.00 43,050.00 242,348.90 • • ••• •••• •••• • •• •••• • Peoria State Hospital. Ordinary Expenses Repairs and Improvements $1,002,500.00 $57,650.00 $289,898.90 Buildings . . $480,000.00 30,000.00 iieadnrPi;;; 71,000.00 Land .:^ 20,000.00 Equipment Live Stock ....!!!!!!!!!!;!!:! 5M66 $ 20,000.00 31,100.00 90.752.68 50,000.00 12,666.66 8,000.00 $ 22,200.00 71,000.00 42,500.00 17,000.00 11,500.00 1,500.00 IVatertown State Hospital. $606,000.00 $211,852.68 $165,700.00 Ordinary Expenses $350 qoO 00 Repairs and Improvements ...!.* 30,'000.00 Budding's-';!::;;:;:;: ^'^-^ Heating Plant ^^"^P"^^"t !!!!!!!!!! 2;666:66 $ 9,500.00 7s,6oo.66 $ 22,800.00 22,000.00 154,500.00 18,000.00 Lincoln State School and Colony^ L'o^r^J/^r'"' $400,000.00 Bn Hd Wc ^"^P'-ovements .... 35.500.00 HSpiani'! ^^'5^00 i^s^\ ••••••••••' 3:506:66 $389, moo $84,500.00 $217,300.00 $ 9,000.00 50,000.00 23,000.00 5,800.00 1.200.00 $ 13,500.00 78,000.00 16:566:66 $462^00.00 $89,000.00 $102,000.00 CHARITIES — (Cont.) Industrial Home for the Blind. Ordinary Expenses Repairs and Improvements. . Buildings Equipment Working Capital APPROPRIATIONS 1909 School for the Blind. Ordinary Expenses Repairs and Improvements. .. Buildings Library Heating System , Equipment and Miscellaneous, School for the Deaf. Ordinary Expenses , Repairs and Improvements. Machinery Library and Equipment... Soldiers' Widoivs' Home. Ordinary Expenses Repairs and Improvements, Buildings Fire Protection , Soldiers' and Sailors' Home. Ordinary Expenses Repairs and Improvements. Buildings and Land Fire Protection Equipment, etc Soldiers' Orphans' Home. Ordinary Expenses Repairs and Improvements... Buildings Librarj^ Equipment, etc $50,000.00 5,000.00 15,000.00 $105,000.00 19,000.00 2,000.00 1,500.00 1,000.00 $128,500.00 $250,000.00 30,000.00 4,000.00 1,500.00 $285,500.00 $45,000.00 5,500.00 500.00 $400,000.00 40,000.00 26,000.00 14,900.00 $135,000.00 18,615.00 2,800.00 Charitable Eye and Ear Infirmary. Ordinary Expenses $100,000.00 Repairs and Improvements 11,000.00 Librar>' and Miscellaneous 7,000.00 $118,000.00 1911 $ 7,852.97 "25:566:66 $1,000.00 "i,666:66 $2,600.00 $4,000.00 $4,000.00 $23,950.00 $51,000.00 $23,950.00 $25,200.00 15,100.00 3,100.00 1,400.00 $480,900.00 $44,800.00 $ 2,895.00 10,350.00 $156,415.00 $13,245.00 $3,500.00 1,200.00 $4,700.00 1045 1913 $ 2,250.00 10,000.00 3,500.00 120,000.00 $70,000.00 $33,352.97 $135,750.00 $ 1,200.00 6,500.00 1.600.00 '"3:466:66 $12,700.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00* $15,780.00 $15,780.00 $19,800.00 2,500.00 $22,300.00 1046 EFFICIENCY AND ECONOMY COMMITTEE CHARITIES— (Cont.) 1909 1911 St. Charles School for Boys. Ordinary Expenses $185,000.00 Repairs and Improvements.... 12,000.00 $18,500.00 Live Stock and Implements.... 2,000.00 3,000.00 Buildings 55,000.00 38,300.00 l^umishing. Equipment and Mis- cellaneous 25,100.00 36,800.00 $279,100.00 $96,600.00 Training School for Girls. Ordinary Expenses $190,000.00 Repairs and Improvements.... 16,000.00 $ 15,0(J6.66 Buildings . 29,000.00 75,000.00 i^urnishing, Equipment and Mis- cellaneous 29,000.00 11,500.00 $264,000.00 $101,500.00 Surgical Institution for Children. ' S"''"!'"? $60,000.00 ^""^»^h»"g 15,000.00 $75,000.00 State Colony for Epileptics. ~ Purchase of Site, Drawings, Plans and Preliminary Con- struction of Buildings Total, Charities $6,145,315.00 $9,669,258.65 PENAL AND REFORMATORY. ' — Illinois State Penitentiary. Ordinary Expenses $530,000.00 $530,000.00 Parole Expenses- 20.000.00 20,000.00 Repairs and Improvements. .. . 12,500.00 50,00000 Dynanios, Motors and Other Equipment $562,500.00 $600,000.00 Illinois Southern Penitentiary. ~ — Ordinary Expenses $360,000.00 $390,000.00 Parole Expenses . . 10,000.00 10,000.00 Library and Chapel 700.00 700.00 Building Repairs, Furnishing, Equipment, ^*^ 24,000.00 70,000.00 $394,700.00 $470,700.00 Illinois State Reformatory. ' ' — Ordinary Expenses $400,000.00 $360,000.00 Parole Expenses 20,000.00 20,000.00 Repairs and Improvements.... 18,500.00 20,500 00 School, Library, Lectures, etc.. . 19,300.00 18,900 00 Machmer)% Equipment and Mis- cellaneous 3,500.00 2,000.00 $461,300.00 $421,400.00 1913 $ 6,500.00 "i86,566'66 13.500.00 $206,500.00 $22,250.00 24,000.00 19,685.47 $65,935.47 $500,000.00 $11,537,876.64 $530,000.00 20,000.00 25,000.00 25,000.00 $600,000.00 $400,000.00 10,000.00 700.00 6,000.00 11,000.00 $427,700.00 $340,000.00 20,000.00 11,650.00 18,900.00 10,900.00 $401,450.00 APPROPRIATIONS PENAL AND REFORMATORY — (Cont.). 1909 1911 Commissioners — Penitentiary Building. Locating Site and Construction of Building $500,000.00 $400,000.00 Conveying Convicts, etc. Expense, Conveying to Peni- tentiary $ 40,000.00 $ 40,000.00 Expense, Conveying to Reform- atory 30,000.00 20,000.00 Expense, Conveying to St. Charles School for Boys 14,000.00 30,000.00 Expense, Conveying to Training School for Girls 14,000.00 16,000.00 Expense, Transferring to and from Asylum for Insane Criminals 2,000.00 2,000.00 * Expense, Transferring to and From General Hospital for In- sane 2,000.00 $102,000.00 $108,000.00 Fugitives and Rewards. Expenses $57,000.00 $42,000.00 State Board of Pardons. , Salary $2,400.00 $5,460.00 Expenses 2,000.00 3,000.00 $4,400.00 $8,460.00 State Board of Prison Industries. Salaries $19,200.00 Expenses $32,000.00 4,800.00 $32,000.00 $24,000.00 Total, Penal and Reformatory. . $2,113,900.00 $2,074,560.00 PUBLIC WORKS, PARKS AND MONUMENTS. State Highway Commission. Salaries Building and Maintaining State Aid Roads $130,000.00 $200,000.00 Experimental Road Work, Plans, etc $130,000.00 $200,000.00 Canal Commissioners. Improvements and Expenses... $35,000.00 $57,500.00 Internal Improvement Commission. Removing Dams and Obstruc- tions in Little Wabash River $30,000.00 1047 1913 $117,859.64 $ 40,000.00 20,000.00 30,000.00 16,000.00 2,000.00 $108,000.00 $52,000.00 $2,400.00 2,000.00 $4,400.00 $5,400.00 3,000.00 $8,400.00 $1,719,809.64 $ 61,000.00 1,107,500.00 "{39,666.66 $1,307,500.00 $50,000.00 1048 EFFICIENCY AND ECONOMY COMMITTEE PUBLIC WORKS, PARKS AND MONUMENTS— (Cont). Rivei's and Lakes Commission. 1909 Salaries Repairing Levees ...* Expenses 1911 $30,000.00 Committee on Public Lands. Clerks and Expenses $15,000.00 Game and Fish Conservation Commission 1^^^"^* $8,000.00 $152,760.00 ^^P^'^ses 50,000.00 199.400.00 Emergency 66 759.54 Illinois Park Commission. Salaries Purchase of Land Expenses (Improvement, etc.). $1,000.00 Trustees— Lincoln Home. Salary $2 000 00 Improvements and Repairs 600 00 Expenses 550.00 $3,150.00 Trustees — Lincoln Monument. Salaiy $2,000.00 Repairs Fuel and Care of Grounds....*. 3,56666 Fort Massac Trustees. Salary Care and Improvements Building Pavilion and Walls Commissioners — Monuments. Indian Creek Monument Vicksburg Park Monument Gen. Lawler Monument Madison Co. Anniversary Monu- ment Shabbona Park Monument Kenesaw Mt. Monument Perry Centennial Altgeld Monument Carlin Monument $5,500.00 $1,200.00 5.000.00 3,000.00 $1,000.00 2,000.00 $150,000.00 1,000.00 $1,000.00 $151,000.00 $3,000.00 1,033.61 550.00 $4,583.61 $2,400.00 250.00 3,500.00 $6,150.00 $ 1.200.00 5,000.00 5,000.00 $9,200.00 $11,200.00 $ 5,000.00 5,000.00 1,000.00 20,000.00 I $3,000.00 $31,000.00 1913 $ 19.200.00 342,000.00 45,200.00 $30,000.00 $406,400.00 $205,200.00 156,500.00 $58,000.00 $418,919.54 $361,700.00 $ 1.200.00 45,000.00 14,000.00 $60,200.00 $3,000.00 600.00 1,300.00 $4,900.00 $3,000.00 500.00 3.500.00 $7,000.00 $1,280.00 5,000.00 1,500.00 $7,700.00 $19,617.90 50,000.00 25,000.00 5,000.00 $99,617.90 State Art Commissioners. APPROPRIATIONS 1909 1911 1049 1913 *~.j%.y\,t.L9^, j^iiiv^uiu oiaiuie Expense, Douglas Monument $10,000.00 1.000.00 • $11,000.00 Commissioners— Fort Chartres. Rebuilding Walls $4,000.00 Commissioners— Fort Edwards. Expenses $2,500.00 Grand Army of the Republic. Expenses $2 000 00 $2,000.00 $2,000.00 1,800.00 $3,800.00 $2,000.00 $4,000.00 2,200.00 Grand Army Hall and Memorial Association. Salaries Expenses ] ]1. ..i. [*[' [ $6,200.00 Illinois- Anders onville Commission. Expenses $600.00 Panama-Pacific Exposition Commission. Expenses $2,500.00 $300,000.00 Centennial Commission. Expenses $10,000.00 , Negro Emancipation Anniversary. Expenses $ 25.000.00 $2,500.00 $918,653.15 $335,000.00 Total, Public Works, Parks ^ and Monuments $291,850.00 $2,666,317.90 1050 EFFICIENCY AND ECONOMY COMMITTEE APPROPRIATIONS 1051 S5 s J2 5^ 3 0\ vO >0 ID vO ro S8 if:? VO CO O VO CM S VO VO VO VO 0\ VO 8S 00 VO (Xf CM O 0\ VO o 00 r— I lO VO VO 8 VO 00" VO '^ •k VO ON T-H oT VO CO VO 00 CM CM ON t< On CM^ 1-H lO CO fO" CO S « O 04 «o i§ O ^ CO ^ VO NO i CM VO ^ ;^ VO o J^' it ^- O VO o. 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