Documentary journal of Indiana 1902 (Volume Vol I) online

INDIANA
STATE LIBRARY



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entaryjou1902v1indi



ANNUAL REPORTS



Officers of State



STATE OF INDIANA,



ADMINISTRATIVE OFFICERS, TRUSTEES AND SUPERINTENDENTS OF THE

SEVERAL BENEVOLENT AND REFORMATORY INSTITUTIONS, AS

REQUIRED BY LAW TO BE MADE TO THE GOVERNOR,



Fiscal Year Ending October 31, 1902.



VOLUME I.



BY AUTHORITY.



INDIANAPOLIS:

TTM. B. BUHFOKD, CONTRACTOR FOR STATE PRINTING AND BINDING.

1903.



INDIANA STATE LIBRARY



PREFACE.



STATE OF INDIANA,

Office of Secretary of State,
Indianapolis, November 1, 1903.

In accordance with the requirements of an act, approved February 3,
1853 (1st G. & H., p. 538), the several administrative officers of the State,
and the Trustees and Superintendents of the Benevolent, Reformatory and
Educational Institutions thereof, have submitted to the Governor, and filed
in the Executive Department the reports required of them for the fiscal
year ending October 31, 1902, and the calendar year ending December 31,
1902, respectively, which have been entered of record in the order of their
reception, and delivered to the Secretary of State for publication under the
order of the Board of Commissioners of Public Printing and Binding.

One thousand copies of reports are now bound in one volume, and
issued to the officers and persons designated by law to receive them. The
usual number of copies of each report have also been bound in pamphlet
form, and delivered to the responsible officer or Superintendent of each
Institution for distribution in such manner as they may deem for the best
interests of the State.

THOS. J. CARTER,

Clerk Bureau of Public Printing.



CONTENTS VOLUME I.



Auditor of State.
Treasurer of State.
Secretary of State.
Attorney-GeneraL



ANNUAL REPORT



AUDITOR OF STATE



STATE OF INDIANA



Being a Detailed Statement of the Work of the Various Depart-
ments of Said Office for the Fiscal Year Ending
October 31, 1902,



APPENDIX:

Proceedings State Board of Tax Commissioners.



TO THE GOVERNOR.



INDIANAPOLIS :

WM. B. BURFORD, CONTRACTOR FOR STATE PRINTING AND BINDING.

1902.



WPIANA 8TATF LIBRARY



STATE OF INDIANA,

Executive Department,
Indianapolis, November 15, 1902



.1



Received by the Governor, examined and referred to the Auditor of State for
verification of the financial statement.



Office of Auditor of State, )

Indianapolis, November 17, 1902. /

The within report, so far as the same relates to moneys drawn from the State
Treasury, has been examined and found correct.

W. H. HART,

Auditor of State,



November 17, 1902.

Returned by the Auditor of State, with above certificate, and transmitted to
Secretary of State for publication, upon the order of the Board of Commissioners
of Public Printing and Binding.

CHAS. E. WILSON,

Private Secretary.



Filed in the office of the Secretary of State of the State of Indiana, Novem-
ber 17, 1902.

UNION B. HUNT,

Secretary of State.



Received the within report and delivered to the printer this 17th day of No-
vember, 1902.

THOS. J. CARTER,

Clerk Printing Bureau.



(Ill)



INDEX.



AUDITING DEPARTMENT.

Page.

Abstract of Assessments, 1902 86-91

Abstract of Duplicates, 1901 69-85

Balance in Treasury —

November 1, 1901 27

October 31, 1902 30

Benevolent Institution Fund

Receipts to 38

Disbursements from 51

College Fund-
Condition of 120

Disbursements from 50

Interest, disbursements of 50

Interest, receipts of 37

List of borrowers from, by counties 116-121

Receipts to 37

Classification of —

Disbursements, General Fund 53-68

Receipts, General Fund 53-68

Disbursements during fiscal year from —

Benevolent Institution Fund 50

College Fund 50

College Fund Interest 50

Educational Institution Fund 50

Escheated Estates 50

General Fund 39-50

Permanent Endowment Fujid, Indiana University 50

Permanent Endowment Fund, Indiana University, Interest. . 50

Sales Permanent Endowment Fund Lands 50

School Revenue for Tuition 50

State Debt Sinking Fund 50

Unclaimed Estates 50

Disbursements by Funds, 29

. Disbursements Estimated 20-26

(V)



(VI)



Educational lustitution Fund — Page.

Disbursements from 50

Receipts to 38

General Fund —

Disbursements 39-50

Receipts 31-37

Receipts to, summary of 33-36

Interest on Public Debt Ill

Introductory Remarks 5-18

Public Debt Statement 108-110

Permanent Endowment Fund, Indiana University —

Disbursements from 50

Distribution of the Fund 115

Interest, disbursement of 50

Interest, receipts of 37

List of borrowers, by counties 112-115

Receipts to 37

Sales of lands 50 : 38

Poll Taxes-
Collections of, December Settlement, 1901 102-103

Collections of, May Settlement, 1902 104-105

Receipts by Funds 28

Receipts Estimated 19-20

Receipts to —

Benevolent Institution Fund 38

' College Fund 37

College Fund Interest .' 37

Educational Institution Fuaid 38

General Fund 31-37

Permanent Endowment Fund 37

Permanent Endowment Fund Interest 37

Sales University and College Fund Lands 38

Sales State Lands 38

Sales Permanent Endowment Fund Lands 38

State Debt Sinking Fund 38

School Revenue for Tuition 37

Swamp Land Fund 39

Sales of State Lands 38

Sales Permanent Endowment Fund Lands —

Disbursements 50

Receipts 38

Sales University and College Fund Lands —

Receipts 38

State Debt Sinking Fund-
Disbursements 50

Receipts 38



(yu)

School Revenue for Tuition— ' Page.

Disbursements 50

Receipts '^^

Special Judges,, allowances to 106-107

Settlements —

December, 1901 92-95

May, 1902 96-101

Summary Receipts, General Fund 39-50

Summary Disbursements from General Fund 49-50

Tax Levies, 1850-1902 121

Taxes Collected 92-101

Taxable Property 69-85

INSURANCE DEPARTMENT.

Annual reports of companies 84-242

Assets of companies —

Fire and marine insurance companies of other States 14-18

Miscellaneous companies 19

Life companies 62-65

Indiana life companies 114-131

Invested assets, fire and marine and foreign companies 21-27

Companies authorized to do business in the State —

Fire and fire and marine companies of other States 4-6

Fire companies of foreign lands 6-7

Fire companies of Indiana 4

Life and accident assessment companies of Indiana 10

Life and accident assessment companies of other States 9-10

Life companies of Indiana 8

Miscellaneous companies of Indiana 7

Miscellaneous companies of other States 7-8

Companies of other States admitted to do business in the State . . . 11-12

Fraternal companies of Indiana complying with law of 1899 10

Fraternal companies of other States 11

Fraternal associations — Statistical 68-83

Insurance in force, premiums, losses, taxes, fees 39-60

Liabilities —

Fire and fire and marine companies 39-37

Miscellaneous companies 37-38

Life companies 62-65

Indiana Life companies 114-131

Reports of—

Legal reserve life companies, Indiana 114-131

Indiana fire and miscellaneous companies 90-112

Indiana assessment life and accident companies 134-169

Indiana fraternal beneficiary associations 154-169

Assessment accident companies of of other States 172-188

Fraternal beneficiary associations of other States 186-256



(VIII)

BUILDING AND LOAN DEPARTMENT.

Introductory 3

Associations beginning business 5-6

Associations in liquidation 7

Associations retiring from business 6

Comparative statements, years 1901-1902 10

Comparative statements, Indianapolis associations 12

Dividends liquidating associations 8-9

Statements of condition of associations 14-210

BANK DEPARTMENT.

Calls on State banks for 1902 9

Comparative statements, resources and liabilities for 1901-1902 —

State banks 10

Savings banks 67

Trust companies 51

Remarks 3

Statements of condition —

Savings banks '*. 68-70

State banks • 11-48

Trust companies 52-64

LAND DEPARTMENT.

Lands lield by State by deed 13

List of lands unsold under acts 1888 and 1889 5

List of lands forfeited for non-payment of loans 6-12

Remarks 3

APPENDIX.
Proceedings State Board of Tax Commissioners for 1902.



OFFICE OF AUDITOR OF STATE.



WILLIAM H. HAET,

Auditor of State.

FKANK MAETIE",

Deputy Auditor of State.

OLIVER T. PARKER,

Settlement Clerk.

ISTELLIE JOHN^STOIs^,

Stenograjjher.

CYRUS W. NEAL,

Clerk Insurance De2)artment.

J. A. McEWEN,

Actuary Insurance Department.

I^ELLIE C. MOORE,

Assistant Clerk Insurance Department.

LEOPOLD G. ROTHSCHILD,
Clerk Land and Bank Department.

GEORGE U. BII^GHAM,

Inspector Building and Loan Department.

THOMAS B. MILLIKAIsT,

State Bank Examiner.

—9-



AUDITOR^S REPORT.



Hon W infield T. Durhin, Governor of Indiana:

Sir — I have the honor to herewith submit for vonr examina-
tion the report of the Auditor of State for the iiscal year ending
October 31, 1902, giving in detail the fiscal affairs of the State,
with an elaborate showing of receipts and disbursements and ex-
haustive tabulations reviewing abstracts of county assessments and
settlements ; valuable data, associated with tax levies, duplicates ;
and all features associated with the assessment, collection and dis-
position of public revenues. I have also submitted extended re-
ports of the insurance, land, building association, banking and
trust bureaus, with suggestions as provided by statute, that in my
judginent would be of benefit to the people in strengthening the
law as to the efficiency of these agencies of public utility.

ACCOUXTIXG DEPARTMENT.

There is now levied for State purposes an aggregate tax of 29f
cents on each $100. Of this amount, nine cents is for the General
Fund, and five cents for the Benevolent Institution Fund. From
the levies in these funds combined come to the State all the taxes
that are, or can be used for the general expense of the State, and
said taxes amounted last year to $2,018,748.50. The levy for
school purposes is 11 cents on the $100, and the taxes resulting are
distributed pro rata among the different counties, according to the
numeration of school children. This tax aggregated last year
$1,639,644.35. The specific levy of three cents on each $100 for
payment on the public debt amounted to $405,413.35, and was
inunediately applied to the purposes of its collection. The Edu-
cational Institution tax of one and two-thirds cents on' each $100,
amounted to $225,346.02, and was distributed as the law provides;



40 pel" cent, to the Indiana University, 30 per cent, to the State
Normal School, and 30 per cent, to Purdue University.

The tax duplicates of the State amount to $1,397,981,497. The
amount of delinquent tax is $2,633,499.51. There can be no
legitimate reason to justify such a large delinquency. In this sea-
son of universal prosperity, if taxes can not be collected, there
must be some radical wrong, proceeding from local causes. It is
manifestly a very grave injustice to the taxpayers who meet
these contributions for the operating expenses of government,
that such a large per cent, of their neighbors are permitted to
either go scot-free, or do indifferently, and often inadequately,
what should be the very first patriotic duty of good citizen-
ship. â– . Thousands of dollars are absolutely lost, by either going
off the duplicates through insolvency, or the removal of delin-
quents to other locations. The Legislature recently endeavored
to cure this wrong by increasing the treasurer's fees two per
cent., but still the evil exists, and in my judgment, because of
the lack of heroic enforcement of the present laws. Here and
there over the State are instances of what can be done — notably
in Marion county. The Treasurer of Fayette coimty in one town-
ship only had $75 in delinquency. I believe the State Tax Commis-
sioners are delegated powers by the statute to supervise delinquent
taxes in the different counties, but if additional legislation is neces-
sary, it ought to be supplied, to the end that these omissions of
public duty and omissions of tax payments should cease. The con-
tinued low agregate of personal property values is again called
to public attention. The bank statements of personal deposits in
Indiana, when contrasted with the "amount of money on hand or
deposit," returned by the taxpayer is a forceful indictment of the
truth of the assessment lists as a whole, and when the other prop-
erty of this class is added, it can readily be seen that at least fifty
per cent, of the personal values of the Commonwealth is untaxed.
Since tithing and taxation have had a history, the effort has been to
cure this evil, and yet the solution has not been reached. The
yearly conference of County Assessors with the State Board of Tax
Commissioners has introduced uniformity into the valuations of
farm and otlier tangible personal values, but money, notes, bonds,
bank deposits, while to a gratifying degree have been brought



Vd

from hiding, still even with this united and earnest effort through
misrepresentation, largely remain in seclusion. The exemption
through perjury of such an aggregate of personal valuations, nec-
essarily causes a higher levy on the property honestly returned,
besides destroying the equality of taxation, which is the first prin-
ciple of political economy. A more vigorous prosecution of the
tax dodger for perjury might be at least a healthy sporadic rem-
edy. The regular assessment of real estate next year should add
very materially to the duplicate. The increase in values in some
counties has been fifty per cent., and in eveiy county 'and city
there have been substantial advances. I should think $1,000,000
would be a conservative estimate of the added values that may be
expected with next year's total assessment and equalization.

The maintenance cost of the State institutions, notwithstand-
ing the increased prices of many afrticles entering into consump-
tion, has been within the appropriations, and there will be no
deficits for the Legislature to provide for. The cost of excess
population above the basis fixed for the regular maintenance appro-
priations in the larger institutions was $43,302.11; the uniform
accounting system of debits and credits from purchase to consump-
tion, the competitive plan of buying with discounts for cash, the
cultivation of the ground and the raising of stock where institutions
have farm lands, has lessened the cost of vegetables, meats, pota-
toes and milk, quite perceptibly, and is manifest in the excellent
comparison of per capita with the years past. I believe a very
decided saving could be had by purchasing supplies for all the
State institutions in one competitive bid, on the general plan
adopted by the Government in the buying of army subsistence. The
State is a cash customer, it is the largest concentrated consumer,
and if all its wants in all its varied lines of maintenance supplies
were combined, the competition would be contested more closely
and the interest of dealers more general. The delivery of supplies
would be a mere incident and the stock objection to a central sys-
tem of purchase, because of the imagined troubles over delivery,
would not be held worthy of serious consideration.

In making specific appropriations, I would respectfully suggest,
especially in the erection of new buildings, that there be no room
for doubt in framing the intention of the Legislature. I have en-
deavored to apply the same construction upon appropriations in



this regard, as i>ertain to general usage in private business, but to
avoid controversy and prevent imposition upon the State, exact-
ness of detail should be used in all specific appropriations, es-
pecially.

THE state's finances.

The iuinutia3 of detail in this report need not be repeated in this
general statement of the State's finances. During the past year the
General .Government has paid $635,859.20, the amount due on ac-
count of interest and discounts growing out of the fiscal operations
of the State in providing for the equipment and maintenance of
our soldiers during the Civil War. Indiana is the onlv State that
was at no expense, as the claim was prepared after weeks of re-
search, detail and verification, by Geo-. U. Bingham, Building Asso-
ciation Inspector of this ofiice, and presented and prosecuted by
Attorney-General Taylor and Mr. Bingham before the Treasur}^
Department, to a successful conclusion. The Indiana delegation in
Congress, and the Governor of Indiana are deserving of special
commendation for their efforts in securing the payment of this war
expenditure. This large amount was immediately applied on the
$1,000,000 payment of the public debt that was made July IStli
last. There is yet due from the Government, on account of the
expense of the Spanish War, $31,966.4-6. This sum can not be
collected without additional legislation by Congress. Every dollar
of this amomit was authorized by the Secretary of War, the im-
mediate exigency was largely a proper care for the soldiers return-
ing to be mustered out of serAdce, yet the accounting department
of the Government has refused reimbursement, for lack of spe-
cific law. The fidelity to proper accountings in confonnity to the
"Mull" law, and the statutes of 1901 specifically pertaining to the
State's institutions, are strictly observed in all disbursements, and
the integTity of all appropriations preserved.

Payments on the public debts have been made as follows:

January 3, 1901, 3 per cent. Refunding Bonds $200,000 00

June 29, 1901, 3 percent. Refunding Bonds 300,000 00

January 2, 1902, 3 per cent. Refunding Bonds 317,000 00

July 26, 1902, 3 per cent. Refunding Bonds 1,000,000 00

Total $1,817,000 00



15

It is probable $200,000 additional can be applied January 1st.
The amount of the public debt is as follows :

3 per cent. School Fund Refunding Bonds, with option clause,

redeemable at the pleasure of the State $1,313,000 00

3^ per cent. Temporary Fund Bonds, redeemable after 1910 1,085,000 00

Purdue University, 5 per cent 340,000 00

Indiana University, 5 per cent 144,000 00

State Stock Certificate 5,615 12

Total $2,887,615 12

It will be seen there is only $1,313,000 of debt bearing the
option clause, and with no excessive appropriations, this can easily
be paid during the term of the present Executive. It would be
better to pay a slight premium if necessary, and take up the
$1,085,000 not redeemable until 1910, permitting the option bonds
to run, and thus wipe out all of the State debt within four years.
The three per cent, specific debt levy realizes about $400,000
yearly, and this with the surplus from fees and taxes to the general
fund will readily meet all of the State's obligations in four years if
the 1910 bonds can be purchased. There should be no reduction of
the State tax levy. The debt paying record has not been at the ex-
pense of a proper care of the State's needs in any direction. The
growing demands of our institutions have been generally met. A
continuance of the present tax levy will supply ample revenues for
the necessities of a State increasing as is Indiana, and keep our in-
stitutions on their present level of excellence. The levy is one of
the lowest of any State in the Union, and would not be ample were
it not for the condensed system of government free as it is from
cumbersome bureaus, and the salary basis of State officials, which
this year turned near $50,000 of fees in the public treasury.

BUILDING ASSOCIATION" DEPAETMENT.

The reports of the building associations of the State show that
during the year their assets have increased $725,739.14. This is
the first year since 1896 that there has not been a falling off in the
volume of business. This gain means much more than figures indi-
cate for it must be remembered that these reports include 112 less
associations than the 1896 report when the high water mark in the
history of these institutions was reached. In addition there is



16

included the reports of 29 associations which are in liquidation and
consequently are diminishing their business. There are also per-
haps a dozen more associations which, while not in formal
liquidation, are practically winding up their business.

In addition to this gain in volume of business, there has been an
increase in loans of $1,100,748.04, and a decrease in real estate
held of $256,198.59. The increase in dues, prepaid and paid-up
stock and deposits has been $662,960.94.

A study of these reports will show that they are again becom-
ing popular and regaining the confidence they enjoyed prior to the
days of their promotion for the purpose of accumulating a large
expense fund to be divided among managers at the cost of safe
methods and careful investments.

In the past few years many of these associations have fast been
growing away from the original plan and gradually assuming the
nature of a banking business. It is true that stock is still issued
but fixed payments of dues, as a rule, is no longer required.

Both investing and borrowing members are permitted to make
payments, large and small, as they see fit and earnings are appor-
tioned in the amount of their credits at dividend periods. With-
drawals of part or all of their deposits is permitted and the question
of maturity of stock is seldom considered. The only evil result
of these new methods is that the borrower grows careless in the
amount of his payments and disappointment results after years of
paying interest when he finds that his principal is so slightly
reduced.

The practice of receiving deposits, in place of issuing stock, is
also growing though it is believed without authority of law. If
without authority then the status of depositor, in case of insolvency
is in doubt. The law should either directly authorize these de-
posits and fix the conditions of their receipt and withdrawal, or
prohibit the practice in positive language.

From the beginning these institutions have made a practice of
borrowing money when the demand for loans made it necessary and
profitable. The right to do this is not included in their corporate
powers, and it is a question under the building and loan plan as
originally practiced whether this is a necessary incident to the
business so that the power might be implied.



11

111 view of the changing conditions of this business and to enable
these institutions to occupy their sphere as the people's savings
bank, additional legislation for their guidance and protection
should be had.

I suggest that laws be passed authorizing, first, the making of
definite contracts with each individual borrower so that fixed pay-
ments at definite periods for a fixed time will cancel his loan.
Second, that the power to receive deposits be given. But this
should not be granted until the law is so changed that there is not
only a moral but a financial responsibility on the part of the man-
agement. The savings bank law requires that a person competent
to serve as a trustee shall own unincumbered real estate with at
least $5,000 exclusive of perishable improvements. This much
should be required of directors in building associations receiving
deposits. And in addition their responsibility for mismanagement
should be declared. The courts have recently held directors in
banks responsible for their management, in addition to their re-
sponsibility as shareholders, and this theory should ])e incorporated
in any change of law. The depositor should ]iarticipate in the
profits rather than permit fixed interest rates.

Third, the power to borrow money, if properly restricted should
be given. It is at times a distinct advantage to these associations
to borrow temporarily to meet the demands for loans. But it is
only for such purposes that borrowing money should be permitted.
This would under existing conditions be seldom necessary. There
is a necessity in this State for institutions receiving small deposits
and the making of loans in the building and loan plan. Trust com-
panies and savings banks are filling the field so far as deposits are
concerned, and they can not make the loans on the small margin of
security that a building and loan association does. For this reason
these associations should be encouraged but the law should not be so
liberal as to oft'er inducements for the ignorant, incompetent or dis-
honest to engage in the business.

The Auditor of State should also be given authoritv to make
periodical examinations of these associations. There can be no
complete supervision without this power. Xo system of reports