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BUREAU OF LABOR STATISTICS

A bureau of labor statistics was created by the Twentieth General Assembly, which was placed under the control of a commissioner appointed by the governor. The duties imposed by the statute are numerous and complicated. No authority, however, is given the commissioner to interfere in any manner with controversies that may arise between employers and employes, or to indulge a sound discretion in any particular. The office is purely clerical, and the annual appropriations have never been sufficient to secure reliable data so as to render the biennial reports of any material service to the cause of labor, or to students of economic questions. The bureau, I think, should be abolished or modified. I recommend the latter. Instead of being simply a bureau of labor statistics, why not make it cover statistics generally, which would include everything affecting labor, and many other interests as well? The commissioner should be appointed, subject to confirmation by the senate, or other means provided to render the tenure of office somewhat more assured. Only in this way can the services of a scientifically educated and trained statistician be obtained. There is much information contained in existing reports, and vastly more available from other sources, which, if properly compiled and tabulated, would be of great value to the people of our state. It might not be feasible to cover each important item biennially, but an annual report should be pub. lished embracing a number of subjects; then, if sufficient discretion be given, in a few years there will be, within easy access of every student of economics, what can now be obtained only by a research extending over several decades and through innumerable volumes of musty records. Much new matter, in addition, can be collected from sources not now available and presented in inviting and comprehensive form. No subject more than statistics demands special skill and training. General intelligence, knowledge of many subjects, or a conscientious effort to do well is not enough. To make the bureau of value it must be placed in the hands of an expert statistician.

BUILDING AND LOAN ASSOCIATIONS.

Insufficient protection for the people of our state, against reckless investments by nonresident building and loan associations, is now afforded by our laws. Instances have repeatedly been brought to my attention where the holders of stock in these foreign associations, have paid all their contracts require, and thereafter assessments have been made of more than 25 per cent of the withdrawal value. I think it would be well to safeguard our people by somewhat more advanced legislation on the subject.

There is now no provision for winding up the affairs of a solvent building and loan association, which may, for any reason, desire to go into voluntary liquidation. If a company be compelled to close out its business in detail, and in the order in which it was acquired, when there is no longer the incentive to economy which existed when the enterprise was launched, the assets of the company will be exhausted long before the last share of stock matures.

It is not unlikely that existing associations may find it convenient and desirable to transfer their liabilities and assets to other companies, and provision therefor can be, I think, safely and advantageously made.

LINSEED OIL.

I recommend a modification of chapter 52, acts of the Twenty-seventh General Assembly, being "an act to prevent the adulteration of, and deception in, the sale of linseed and flaxseed oil, and to regulate the sale thereof." It is difficult to obtain evidence sufficient to justify prosecutions under this chapter, for the reason that the only prohibition is couched in the clause forbidding the sale of compounds or adulterations "under the name or description contained in the words 'linseed oil' or 'flaxseed oil. "" If the vendors of paint oils were required to attach a label to the receptacle in which the oil is delivered to the purchaser, designating the article sold as "pure flaxseed oil" or "compound oil," as the case might be, the statute would be rendered much more effective. If the attempt is to be made to safeguard the purchaser against imposition, the statute should be sufficiently comprehensive to furnish adequate protection.

OIL INSPECTORS.

Some slight amendment should be made to section 2507 of the code, which has reference to the compensation and expenses of oil inspectors. The section reads as follows: "Should any inspector pay out more money in any one month for necessary expenses incurred, for prosecutions for the violation of the provisions of this chapter, or for necessary help in branding qarrels, than fees collected, such excess shall be refunded to him on his filing a sworn itemized statement with the governor, showing fees collected and expenses paid or incurred, which statement must be approved by the governor." It was evidently intended that the auditor should issue a warrant for such excess, but the statute does not so provide. A better plan, in my opinion, would be to authorize the inspectors to retain only their necessary expenses, and provide for the pay, ment of their salaries based upon the amount of fees collected by warrants drawn by the auditor upon the certificate of such officer as may be charged with the responsibility of auditing the monthly report of the inspectors. This will insure the examination of these reports. As the law now stands, there is no statutory requirement of any official supervision, except in instances where the salary and fees exceed the amount collected.

EXPERT EXAMINATION OF BOOKS.

The statutes of the state contemplate an annual examination of the books of the various state offices and departments, but fail to provide a fund from which the services incident to such examination can be paid. At the beginning of the year 1899, competent accountants were employed and the books of the following offices carefully examined: Clerk of the executive council, secretary of state, auditor of state, clerk of the supreme court, attorney-general, adjutant-general, custodian, superintendent of public instruction, railroad commissioners, board of health, historical department, mine inspectors, pharmacy commission, dairy commissioner, commissioner of labor statistics, geological department, and library. The expense of these examinations amounted to $550, which has not been paid for reasons above stated. As a matter of business protection, similar examinations ought to be made annually, and

should be provided for by necessary appropriations. The expense is small compared with the protection thereby afforded. I recommend an appropriation sufficient to pay the expense already incurred, and that authority be given the executive council to discharge similar bills in the future.

EXECUTIVE COUNCIL.

I recommend also that a reasonable discretion be given the executive council in some other matters. The statute now authorizes the purchase of office furniture and supplies, but requires the contract to be let to the lowest responsible bidder after due advertisement. This is impracticable in many instances. No state officer, nor all combined, can purchase so much as postage stamps, if the mandates of the statute be fol. lowed, without first advertising for bids; and the furniture and fixtures in the various offices cannot be repaired, for there is no fund from which to pay for the same. New typewriters, for instance, can be purchased, but those now owned by the state cannot be repaired. I recommend the appropriation of a limited amount to be used for miscellaneous purposes at the discretion of the executive council.

INSURANCE REPORT OF AUDITOR OF STATE.

The state auditor is required to make to the governor an annual report of all insurance companies operating in this state, setting forth a general summary of the business done and the financial condition of each. The statute expressly provides that this report shall be published in a single volume. This document is seldom sought except by insurance companies or persons engaged in that business. Life companies have no need for, nor do they desire, that part of the report relating to fire insurance; and persons interested in fire insur ance care only for that portion which relates to their branch of the business. In practice, the companies obtain these reports, tear out and destroy the portion not desired, and have the balance rebound before sending to their agents, saving in postage thereby enough to pay the expense of rebinding. The number of reports authorized by law is insufficient to meet the demands of the public; but, if authority were granted to have at least a portion of the reports bound

separately, no additional expense of printing would be incurred; and the increased number of volumes thus occasioned would be sufficient to meet all demands.

BINDING REPORTS.

Section 125 of the code provides that 500 copies of the message, the inaugural address, and each of several enumerated reports shall be bound in cloth, and that all others, not included in volumes of "Iowa Documents," shall be bound in paper. At least a portion of the reports of the attorney-general, of the adjutant-general, of the board of control, and of the geological survey should be, I think, also bound in cloth. Discretion might be safely allowed the executive council in regard to others not enumerated. Permission might be also extended to have separately bound a limited number of the portions of the report of the board of control relating to the several institutions, to meet specific demands.

There is a strong probability of an unusual demand for the current report of the adjutant-general. The largest number which can be printed under the existing law is 4,000 copies. Under ordinary conditions this is enough. I recommend special provision for printing at this time 5,000 extra of the historical portion of this report, and that they be bound in cloth. This will enable the adjutant-general to furnish each of those who served in the volunteer army of the United States during the past biennium a permanently bound copy.

INTEREST ON EDUCATIONAL FUNDS.

By the terms of the federal grant of lands in aid of a college of agriculture and mechanic arts, the proceeds of these lands were made a perpetual fund, and the state is required to make good any losses, and is charged with an annual income. thereon of not less than 5 per cent per annum. The statutes of the state require that this money shall be loaned upon mortgages bearing not less than 6 per cent interest. The unexampled prosperity of the country, and the incident surplus of capital, have rendered it impossible to obtain the rate of interest fixed by law, and there is now in the state treasury more than $150,000 which the statutory restriction as to rates

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