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year, and for the ensuing two fiscal years, $3,299,408.

In making this statement I only comply with the law. This office
has no data from which to determine the amount of money needed,
in order that our public schools shall be maintaii^ed; consequently I
cannot express an opinion as to the necessity for providing this
amount.

For general information, I will state that the Legislature directed
that there should be raised for the State School Fund, during the
thirty-fourth fiscal year, by an ad valorem tax on property, $1,300,000,
which, for 216,330 census children, the number reported to this office
by the Superintendent of Public Instruction for that year, would net
$6 00.9 per child. At $7 per census child — the amount required by
law to be raised — the above amount would have been $1,514,310. There
was apportioned to that fund, in addition, from proceeds of poll ta!x,
interest on bonds held in trust, and interest upon unpaid school land
purchases, $484,340 51, netting $2 23.8 to each child, and making Si



total of S8 24 per child, aggregating for the whole number of census
children $1,782,559 20.

The number of census children for the thirty-fifth fiscal year was
222,846. The amount directed to be raised by taxation for the 8tate
School Fund for that year was §1,300,000, or $5 83.8 per child. The
receipts to this fund during the year, from the proceeds of poll tax,
interest upon bonds, and interest upon unpaid school land purchases,
were SJ41,679 01— equal to SI 98 for each child— making a total
amount, for the whole number of children, of $7 81.9, and aggrega-
ting $1,742,482 87.

INTEREST AND SINKING FUND.

The amount of money necessary to pay the interest that will become
due upon State bonds, and for the redemption of bonds falling due
during the thirty-seventh and thirty-eighth fiscal years, is $700,000.
Included in this amount is the sum of $500,000 for the redemption of
$250,000 State Capitol Bonds of 1870, falling due Julv 1, 1885, and
$250,000 for the redemption of State Capitol Bonds of 1872, falling due
July 1, 1887. All the interest required to be paid by the State upon
Central Pacific Railroad Bonds has been paid.

STATE MINING BUREAU.

The receipts into the fund for the support of this institution have
steadilv decreased each year. For the thirtv-second fiscal vear thev
were $11,781 85; for the thirty-third fiscal year, $10,715 95; for the
thirty-fourth fiscal year, $6,514 70; and for the thirty- fifth fiscal year,
$4,009 25. The main decrease during the last two fiscal years can be
traced to the fact that no special efforts have been made to enforce the
collection of the ten cent tax upon certificates of stock corporations,
from which this fund is derived. In the City and County of San
Francisco it is made the duty of the License Collector to collect this
tax. Prior to July, 1883, a deputy of that office was detailed for that
purpose, but, since that date, as liearn, the Board of Supervisors have
failed to furnish the License Collector a deputy to perform this duty.
No doubt, a large amount of this tax remains unpaid, which would
be paid if an effort was made to collect it. I, therefore, recommencl
that the law be so amended as to place the collection in the hands of
the State Mineralogist.

FISCAL YEAR PAYMENTS OF TAXES.

Much complaint exists because of the fact that there is no money
in the State Treasury to pay demands arising during the first half of
each fiscal year. This comes from the fact that the taxes levied in
the early part of the year do not reach the State Treasury until about
the middle of the following January, and until that time all demands
accruing from and after July first, must remain unpaid, except what
may be paid from the small amounts reaching the treasury from
sources other than the January settlements of County Treasurers,
together with such small balances as may have been carried forward
from the previous fiscal year. As an illustration, the Controller's
warrants, drawn upon the General Fund, from July 1, 1883, to Jan-
uary 1, 1884, amounted to $908,334 45; amount of 'money received
during same period, $192,732 30; leaving warrants amounting to $715,-



28

()02 15, in excess of the money on hand to pay them. These, therefore,
could only be met from the January payments: hence, the complaints.

DEFALCATIONS.

Soon after taking office, January 8, 1883, I became aware of the fact
that the funds of the State had been embezzled in large amounts by
officials in charge of various positions of trust, aud began the exam-
inations necessary to reveal and recover the amounts, and bring the
offenders to punishment. Accordingly, on the eighteenth day of that
month, I addressed a communication to C. D. Bunker, then Commis-
sioner of Immigration, demanding that he at once forward me a
statement of the amount due from him to the State for fees collected
by him as such Commissioner. It is unnecessary to enter into the
details of the correspondence that ensued, further than to state that
he claimed that he was entitled in right to retain as his own all the
money he collected as such officer. Thereupon, actions were instituted
against him for the recovery of the money, judgment was obtained for
^24,908 6(3, and of this amount the sum of $20,156 60 has been paid
into the State Treasury.

In like manner, actions were instituted against T. C. Van Ness, imme-
diate predecessor to Mr. Bunker; judgment was obtained against him
in the Superior Court for $2,382 87; he appealed the case to the Su-
preme Court, and it is as yet undecided.

Close upon the heels of these official shortcomings, followed the
discovery that defalcations existed in the management of the office
of the Harbor Commissioners at San Francisco. A searching inves-
tigation revealed the embezzlement of $91,678 95. As a result, the
Secretary, who had fled to Mexico when exposure became inevitable,
was brought back on extradition, was tried, convicted, and sent to the
penitentiary. The Assistant Secretary is under like conviction, but,
pending an appeal to the Supreme Court, is in jail. One of the
Wharfingers, found to have participated in the stealings, but who
had fled to escape the wrath of the law, was brought back, tried, con-
victed, and is the peer of his former official superior, in the peniten-
tiary. Another is awaiting trial for like offenses.

Civil actions are pending in the Courts for the recovery of the money
found to have been stolen.

Next in order, came the discovery that Grant I. Taggart, ex-Clerk
of the Supreme Court, was a defaulter in the sum of $2,998. FoIIom'-
ing this, came the knowledge that Frank W. Gross, late Clerk of the
Supreme Court, was a defaulter in the sum of $2,880 20. Actions were
commenced and are now pending in Court for the recovery of both
these amounts.

Next came the discovery that Drury Melone, ex-Secretary of State,
was a defaulter. An incomplete examination of his accounts shows
the deflciency to exceed $8,900. There is good reason for believing
that a larger sum will be shown upon a complete overhauling of Mr.
Melone's accounts, as since the demand for payment was made upon
him, many missing books and papers have been found that are likely
to develop shortages not heretofore discovered.

In the preliminary examination of Mr. Melone's books, a compar-
ison was made of the books of the last three Secretaries of State,
which resulted in the immediate discovery of the fact that D. M. Burns,
late Secretary of State, was also a defaulter. The stealings perpe-



29

trated during his administration amounted to $31,739 59. They began
almost at the hour he took office, and ended only when he left it.

Both he and his Deputy, Thomas H. Reynolds, have been arrested,
and are under bonds for these crimes.

A few months since, I discovered that the present Clerk of the
Supreme Court, J. \\. McCarthy, was short in his accounts $2,104 50,
which, so soon as his attention was called to it, he made good by
payment in full. I submitted this matter to the Attorney-General
for his opinion as to what action, if any, should be had in the
premises. Among other things, he replied that, " My opinion is, that
no obligation rests upon your office to institute criminal proceedings.
I shall call the attention of the Grand Jury to the case at its next
session."

The shortages thus discovered amounted to $167,587 77, of which
there has been paid into the State Treasury the sum of $22,261 10.

The large number of defaulters to the State suggests the absolute
necessity for providing a system of checks against misappropriations
of fees by salaried officials. That a system can be devised that will
be effectual against continued wrongdoing cannot be doubted. Such
a system, whilst it may not stamp out all malfeasances, will yet make
success in that line short-lived, and detection next to certain.

To that end, I earnestly recommend that an annual additional ap-
propriation be made for the contingent expenses of this office, of
$2,500, together with traveling expenses of $500 per annum, and that
the appropriation for postage, expressage, etc., be increased to $500
per year. During the investigations already had, the employes of
this office were always ready and willing, from early morn till late at
night, to assist in these investigations. To them is mainly due the
credit for the work accomplished. I also desire to express my thanks
to Mr. W. S. Leake and Mr. E. Lee Brown, for aid rendered me to
the same end. During all this time, I have been hampered in manj-
ways by the lack of means to further the work in hand, and by the
present appropriations, it will be next to impossible to inaugurate
and push to success others, if any are found to exist; in fact, much
that has already been done, could not have been done, had it not
been through the generous assistance extended me on all occasions
by Governor Stoneman.

But if this very large sum of $167,587 77, as above, has been discov-
ered, in less than two years, it is possible that other defalcations exist
in the accounts of officials not' yet examined. It is due to the State,
as well as to faithful officials, that the books of 'settlement between
them and the State shall be thoroughly experted frequently.

In this connection, I, desire to express my deep obligations, and
venture also to express those of the whole people, to the intelligent,
faithful, and vmtiring aid afforded me by John Pettee, in experting
the books of the Harbor Commissioners, through which the myriad
of rascalities practiced there were unraveled, and the large amount
of money stolen was ascertained. Mr. Pettee has not, in my judg-
ment, been sufficiently rewarded for his arduous, pains-taking ser-
vices, and I recommend that $500 be appropriated to him for that
purpose.

The especial attention of the Attorney-General was invited to these
various defalcations, by statements furnished him by this office, in
each case, for such action as in his judgment might be deemed
necessary.



30

In this connection, I deem it a duty to recommend that compensa-
tion be appropriated to Messrs. Langhorne & Miller, attorneys, for
their energetic labors in the prosecution of the State's interests in the
cases of Bunker and others. These gentlemen were employed by the
Attorney-General. As alread^'^ stated, they have recovered from Mr.
Bunker the sum of 320,156 60, and have paid the same into the
State Treasury. They have received no compensation. I therefore
recommend that a sum equal to ten per cent of this amount be
appropriated for their benefit. I also recommend that ten per cent
of all such amounts recovered may be retained by the attorneys
recovering them, as compensation for their services.

At the request of Hon. D. B. Woolf, ex-Clerk of the Supreme Court,
I caused to be made a thorough examination of his official books,
and found them correct.

OFFICIAL FEES.

Strong safeguards should be thrown over the payment of fees col-
lected by all State officials, to the end that they be paid into the State
Treasury. A simple, and what Avould seem to be effectual, safeguard
could, in my judgment, be adopted, by requiring that the Controller
issue stub certificate books to each office receiving fees, in which should
be entered, by the officer receiving them, for any work done or service
performed by him, the name and residence of the person ordering the
work done, the amount paid, the date, and the nature of the work, the
stub to contain a duplicate of the items written in the certificate, the
certificate and stub to contain corresponding numbers, the stub books
to be returned to the Controller, and examined by him at least once
in every three months. This system should then be supplemented by
the law requiring the certificates thus issued to be attached to all docu-
ments issued, and that no document for which fees are chargeable
should be legal, unless bearing this certificate.

SUPPLIES FOR STATE OFFICES.

Admonished bj' the necessity of protecting the State against wrong-
doing, and impelled by a desire to adopt effectual means thereto, after
consultation with the present Secretary of State, I respectfully recom-
mend the following change in the manner of supplies furnished to
State offices: That the State Board of Examiners, upon receipt of
stationery under contract, shall, beforcaccepting it, require the Super-
intendent of State Printing to inspect and weigh all stationery so
furnished, and certify to the Board of Examiners as to its standard
character, based ui)on the specimen. furnisUed un*der contract; and
that the Board shall then accept or reject it, as to them shall seem
proper; that they deliver the accepted supplies to the Secretary of
State, taking his receipt therefor; that he furnish all other State
officials, taking their receipts; that, at the end of each fiscal year, he
furnish to the Controller a statement, under oath, of the kind, amount,
and cost of the supplies furnished to each official; that everj' such
official be required to keep a book in which shall be entered all the
supplies received during each such year; and, finally, that every
State official file with the Controller, at the end of each fiscal year, a
sworn itemized statement of the amount and kind received by him
from the Secretary of State during the year.



31

DEFICIENCY APPROPRIATIONS.

In addition to the regular appropriations, the following deficiency
claims are presented, the appropriations for their payment having
become exhausted before presentation :

For Thirty-fourth Fiscal Tear.

Postage and contingent expenses in office of Attorney- General $34 ?.0

Postage and contingent expenses in office of Surveyor-General — 7 10

Copying maps in office of Surveyor-General 87 50

Postage and expressage in office of Superintendent of Public Instruction fi6 40

Contingent expenses of State Board of Equalization 27 70

Postage and contingent expenses in office of Clerk of Supreme Court 9 00

Purchase of Supreme Court Reports 300 00

Salary of Secretary to State Engineer 785 70

Material and labor furnished State Normal School, San Jose 395 60

Support of State Prison at San Quentin 68 67

Support of Insane As3'lum at Stockton 3,915 43

Support of Insane Asylum at Napa 6,293 22

Arrest of criminals outside the limits of the State 493 54

Transportation of insane 5,584 55

Transportation of prisoners 2,840 30

Total $20,909 07

Thirty-fifth Fiscal Tear.

Postage and expressage in Controller's office $3 79

Traveling expenses of the Attorney-General 84 00

Traveling expensesof the Attorney-General and Surveyor-General 1,025 00

Postage and expressage in Surveyor-General's office 4 40

Traveling expenses of Superintendent of Public Instruction 40 95

Postage and expressage in office of Adjutant-General 31 43

Qleaning and transportation of arms, etc 2 05

Expenses of Supreme Court under Section 47, Code Civil Procedure 5,705 68

Postage and contingent expenses of Supreme Court 64 00

Traveling expenses of State Board of Equalization 422 95

Salary of Clerk to State Board of Equalization 600 00

Salary of Guardian of Yosemite Valley 500 00

Salary of Secretary to State Engineer 800 00

Support of State Prison at Folsora 96 86

Support of State Insane Asylum at Stockton 6,214 65

Restoration and perservation of fish in the waters of the State 941 05

Continuing special investigations in agricultural department of the State University. 369 79

Arrest of criminals outside the limits of the State 2,025 15

Transportation of insane 4,877 16

Transportation of prisoners 4,340 42

Total $28,139 23

CONCLUSION.

I have tlie honor to submit the foregoing report for the fiscal years
indicated.

Respectfully yours,

JOHN P. DUNN,

Controller.



32

DETAILED STATEMENT

Of the manner in xvhich the Appropriations for Contingent Expenses in the office of Controller of
State were' Expended for the Thirty-fourth Fiscal Year, ending June 30, 1883.

August 10, 1882— Capital Ice and Coal Company, ice .— ?^\ tJO

October 18, 1882— Capital Ice and Coal Company, ice :'. 20

October 18, 1882— H. S. Crocker & Co., stationery :! 20

October 18, 18S2 — W. A. Caswell, subscription to San Francisco Chronicle 4 55

October 18, 1882— D. M. Kentield, subscription to Post, S2 60: California Patron.

$1 50; Argonaut, S4 S 10

November 10, 1882 — Capital Ice and Coal Company, ice 1 60

December 9, 1882 — Charles E. Spencer, subscription to Record-Union -t 00

December 12, 1882 — Capital Ice and Coal Company, ice . 1 60

December 30, 1882—Washing towels I . 6 on

.January 6, 1883- D. M. Kenfield, subscription to Daily Post 2 10

January 6, 1883— D. M. Kenfield, stationery 1 15

March 2, 1883 — John P. Dunn, railroad fare to San Francisco and return 5 00

April 24, 1883— Sacramento City Directory, .$3; E. Short, carriage hire, $2 5 00

S47 10
The following bills accrued during the thirty-fourth fiscal year, and were paid in
the thirty-fifth fiscal year:

July 19, 1883 — Capital Ice and Coal Company, ice from March 1 to June 30.- ■<l(i 50
November 16, 1883 — F. J. Clark, hotel expenses in San Francisco during

trial of .John S. Gray, from June 1st to 8th, both inclusive 16 50

November 24, 1883— Wa'shing towels 2 UO

29 00

Total S76 10

For Thirty-fifth Fiscal Year. •

November 8, 188.3 — Tunison Index Map of the United States S2 80

November 8, 1883 — Capital Ice and Coal Company, ice five months 17 05

February 6, 1884 — F. .J. Clark, traveling expenses to San Francisco and return while

attending to official business 7 10

February 6, 1884 — Hack hire in connection with the service of legal papers 4 00

March 11, 1884 — J. C. Gorman and J. J. O'Connor, traveling expenses to San Fran-
cisco and return while attending to oSicial business 1" 70

April 24, 1884— Washing towels 9 00

May 3, 1884— Klinkner k Co., for sorts 3 60

Total - *54 25

I, John P. Dunn, Controller of State, do solemnly swear that the
foregoing is a true and correct statement in detail of the manner in
which the appropriations for contingent expenses for the thirtj'^-
fourth and thirty-fifth fiscal years were expended, from January 8,
1883, to July 1, 1884, and that as to the expenditures for the period
commencing July 1, 1882, and ending January 7, 1883, the statement
is true, as taken from the books of this office, vouchers for all of
which are now on file.

JOHN P. DUNN,

Controller.

Subscribed and sworn to before me this twenty-eighth day of
November, A. D. 1884.

W. W. Morel AND,
Clerk State Board of Examiners.



33

DETAILED STATEMENT

Of the manner in which the Appropriations for Postage, Expressage, and Telegraphing, in the office
of Controller of State, were Expended for the Thirty-fourth Fiscal Year.

October 18, 1882— Paid Wells, Fargo <fc Co $0 70

October 18. 1882— Post Office box rent, $8; postage stamps, $21 ; telegraphing, $3 45_- 32 -55

December 9, 1882— Telegraphing 19 10

January 6, 1883 — Postage stamp's, $20 : Post Office box rent, 84 ; telegraphing, $11 85. 35 85

January 6, 1 883- Wells, Fargo & Co.. 80

February 23, 1883— Postage stamps, $16 : telegraphing, $1 20 17 20

March 2", 1883— Postage stamps, $20; telegraphing, $1 50.. , 21 50

April 6, 1883— Telegraph in 2; !! 10 15

April 20,1SS3—Weils, Fargo & Co fi 20

May 9, 1883— Western Union Telegraph Company 23 85

May 24, 1883— Postage stamps, $61 ; Post Office box rent, $4; deposit on keys, $1 66 00

June 8, 1883 — Western Union Telegraph Company 6 30

June 30, 1883 — Postage stamps, $0 60 ; messenger service, $1 ; telegraphing, $1 35 2 95

$243 05
The following bills accrued during the thirty-fourth liscal year and were paid in the
thirty-fifth fiscal year :

July 5, 1883— Western Union Telegraph Company $7 35

July 19, 1883- Wells. Fargo k Co 2 55

9 90

Total $25^95

For Thirty- fifth Fiscal Tear.

July 19, 1883— Post Office box rent $4 00

August 6,1883 — Western Union Telegraph Company, $9 45; postage stamps, $5 14 45

August 18, 1883— Postage stamps 15 00

September 7. 1883— Telegraphing, $6 60: messenger service, $1 6 60

October 8, 1883- Wells, Fargo & Co 1 2 45

October 8, 1883— Telegraphing, $11 15; Post Office box rent, $4 15 15

October 8, 1883 — Western Union Telegraph Company 50 69

October 8, 1883— Postage stamps 15 00

November 16, 1883— Telegraphing, $2 30; postage stamps, $10 12 30

December 14, 1883 — Telegraphing 7 55

December 21, 1883— C. H. Rave (for 5 keys) 2 50

January 17, 1884 — Telegraphing, $6 80; expressage, $4 30; postage stamps, $10; Post

Office box rent, $4 25 10

February 6, 1884— Postage stamps 25 00

Februarj' 6, 1884 — Western Union Telegraph Comjjany 14 00

March 4'. 1884— Postage stamps 25 00

March 4, 1884 — Western Union Telegraph Company 52 55

April 9, 1884— Wells, Fargo & Co 3 30

April 24, 1884— Telegraphing, $3 05; Post Office box rent, $4 7 05

May 9, 1884— Telegraphing 2 31

Total $300 00

I, John P. Dunn, Controller of State, do solemnly swear that the
foregoing is a true and correct statement in detail of the manner in
which the appropriations for postage, expressage, and telegraphing,
for the thirty-fourth and thirty-fifth fiscal years, were expended, from
January 8, 1883, to July 1, 1884, and that as to the expenditures for
the period commencing July 1, 1882, and ending January 7, 1883, the
statement is true, as taken from the books of this office, vouchers for
all of which are now on file. .

JOHN P. DUNN,

Controller.

Subscribed and sworn to before me this twenty-eighth day of
November, A. D. 1884.

W. W. MORELAND,

Clerk State Board of Examiners.



APPENDIX.



36



■< s



is s



? fH



•^



2 65



Total from ('i>initif's_.


$265,270 09
2,222 37
19,006 31
88,344 31
18,783 83
106,996 31
50,644 72
8,265 35
23,189 24
58,653 30
55,549 75
8,802 62
52,704 15
17,847 29
10,012 70
131,131 94
45,974 47
12,670 36
68,111 89
40,989 39
12,298 10
20,196 06
49,363 77
59,935 37
47,437 58
32,593 35
16,060 74


Estates of Deceuseil


05 18




I 1 1 ]^ 1 1 1 ] 1 1 1 1 .1111,


Seminary Lands —




I
Seminary Laiuls —




I 1 1 1 1 '. 1 1 I I ! ', 1 1 ; ! ; 1 1 ! 1 ; 1 ! 1 1 1

1 1 1 1 1 1 1 I 1 1 1 1 1 1 !•! 1 1 1 1 1 1 1 1 1 1 I






State School Lauds —
I0t]i and :i(>tli Sec-
tions — Interest

State School Lands —
16th and 3Gth Sec-
tions — Principal


$204 21
238 36
330 99
364 46

1,163 42

819 49

589 85

72 27

578 67

5,685 59

3,826 29
416 51

2,437 64
869 44
398 79

3,010 86

423 36

4,518 92

1,728 02

1,141 65

326 23

1,940 95

1,392 99

419 85

546 75

828 36


$705 60

9 80

475 30

2,254 00

1,773 80

3,999 73

709 13

352 80

284 20

10,226 01

8,740 86

784 00

2,508 80

2,095 66

352 80

10,564 16

'"'V,984'66'

18,045 16

1,256 95

39 20

1,048 60

5,531 15

3,669 47

862 40

780 92

1,215 78


State School Lands —
1 fiOOjOOO-acre Grant-
Interest .


! 1 1 00 1 1 1 i-< 05 T)< O ! 1 <M 1 1 1 ! 1 1 1 1 1 1 1 ■* 1

1 1 IO 1 1 it-ooir^io 1 It- 1 1 1 1 1 1-1 1 1 1 I.O 1

1 1 I-<1< 1 i IOTl<C002 1 IM 1 1 1 1 1 1 1 1 1 1 IO 1
Itll35llt^i-H^H01»ICC'"'''IIIII1CDI
1 1 IC©. 1 1 lr-_^-* "^ ' ' 1 ; 1 1 1 1 r-< 1




State School Lands —
500,000-acre Grant-
Principal __ _


iiioiOixjQOocoiii iiiiicqi

1 . ISO IO llr-l-TOC^ 1 1 1 1 1 1 1 1 1 1 1 1 1 |<M 1

1 1 ICT lOO It-OCOCO 1 1 1 1 1 1 1 1 1 1 1 1 1 ITj( 1
Illr-^IO^IOi:— .-hC<1III1|IIIIIIIIICOI
1 1 1 CO 1 1 05 -^ CO 05 1 1 1 1 1 t t 1 1 t 1 1 1 1 T}< t



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