"The Legislature shall provide for an annual tax, sufficient, with other resources, to pay the estimated expenses of the State Government, the interest of the State debt, and such deficiency as may occur in the resources." This provision is mandatory and must be complied with.

The specific taxes collected from corporations are imposed in accordance. with the provisions of the Constitution, as follows:

66

"The Legislature may provide for the collection of specific taxes from banking, railroad, plank road, and other corporations hereafter created."

The moneys so collected are used in accordance with the following provision of the Constitution:

"All specific taxes, except those received from the mining companies of the Upper Peninsula, shall be applied in paying the interest upon the primary school, University, and other educational funds, and the interest and principal of the State debt, in the order herein recited, until the extinguishment of the State debt other than the amounts due to educational funds, when such specific taxes shall be added to and constitute a part of the primary school interest fund."

Under the latter constitutional provision the specific taxes heretofore collected have been applied up to 1880, in paying the interest on Primary School and Educational Funds, and the payment of the interest and the principal of the State bonded debt until the latter was provided for by placing in the sinking fund an amount equal to the bonds then outstanding and unnatured. When the sinking fund became equal to the outstanding bonds, the whole amount of specific taxes were applied to educational purposes, and will continue to be so applied exclusively.

This class of taxes is large and steadily increasing. For the year 1882 they reached the sum of $724,982.62, and for the last five years are shown by the following table:

The larger part of this revenue is derived from railroad corporations. The annual payments for five years are shown by the table following, taken from the report of the Commissioner of Railroads:

The increase in the construction of railroads and the increase of taxes incident to increased traffic, if continued in the same ratio as during the past, and under the same rule of taxation, warrants the estimate that within five years the annual revenues from this source alone will reach $900,000. The time is substantially at hand when the specific taxes from corporations would defray the entire expenses of the State if used for that purpose, and thereby render unnecessary any further direct levy of State taxes for the ordinary

*Includes $72,323.85 arrearage collected of Michigan Southern and Lake Shore Railroad Company after litigation.

current expenses of the State government. This would of course take from the educational institutions and primary schools this large item of their support, and would result in other means having to be devised to make good the amount so diverted. If the people prefer to put the burden of the maintenance of the primary schools upon the districts where they are located, and use a whole or a part of the specific taxes for current expenses of the State, it can only be done by constitutional amendment. Such a change would result in reducing the large balances now necessarily carried in the State Treasury, and were the burden of more fully supporting the primary schools placed upon the tax-payers of each district it would quicken and keep strong their sense of accountability in school management.

FIRE RELIEF.

I called the attention of the last Legislature, at its special session held in February and March, to the disastrous forest fires which for the second time in ten years had devastated, in the month of September previous, the Huron peninsula. Three thousand buildings had been destroyed, eighteen thousand persons had been deprived of the means of support, and between two and three hundred lives had been swept away in this awful calamity. Only the benevolence and coöperation of the public at large had prevented death by starvation. Committees had been organized in Detroit, Port Huron, Flint, East Saginaw, Saginaw, and Bay City to gather and distribute supplies, and they had been aided in obtaining contributions by those of other places. It became evident, however, that a central head had become a necessity, and at the request of the committees representing the places above named, I designated a State Commission to act as a central organization, consisting of ex-Governor H. P. Baldwin, chairman, United States Senator Omar D. Conger, Hon. Charles T. Gorham, General F. W. Swift, Alexander H. Dey, D. C. Whitwood, and George C. Codd, Esquires.

Immediately after this action the local committees, with one exception, became subordinate to the Commission in their work, or turned over their funds to be distributed by the central head, as is shown by the detailed reports submitted by them, and made a part of the report of the Commission.

The Port Huron committee continued to act independently, and was active in the distribution of a large amount of money and many supplies intrusted to it by the donors. Of their action I have no report.

I issued an appeal to the people of the United States, stating the magnitude of the disaster, the appointment of the Commission, and requesting aid. In response to this, and the appeals made very generally through the press, most liberal contributions continued to be made from not only the people in our own State, but from almost every State and territory in the Union. Contributions also came from Canada, from Great Britain, from France, and from South America. While all were liberal, those made by the cities of New York, Boston, and Philadelphia, Pittsburg, Cleveland, Hartford, Newark, Albany, Baltimore, Rochester, Lancaster, and Charleston, (S. C.), were munificent.

The Commission continued the work with rare energy and discretion, and with the means contributed the sufferers were cared for fairly well. In the last days of January, 1882, it became apparent that their wants could not be met by private methods until the harvest would bring relief. After full consultation with many citizens I decided to convene the Legislature in extraordinary session, to consider the situation and to provide means to relieve these

sufferers, and for other important State matters. On the 23d of February the Legislature convened, and after considering the facts presented as to the necessities of these people, an appropriation was made of $250,000, or so much as might be needed, and $15,000 additional for the rebuilding of the school houses destroyed. The distribution of the appropriated funds was placed in the hands of the gentlemen composing the State Commission as above.

The Commission received and disbursed contributions in cash amounting to $416,736.72, and in merchandise estimated at $200,000.

Of the amount appropriated by the State $178,900 has been used for supplies, leaving in the State Treasury undrawn of the appropriation $71,100. The $15,000 appropriated for school houses has been drawn and is substantially exhausted. It will all be used for the purpose for which it was appropriated.

The aid thus rendered by contributions and by the State sustained these sufferers until the late harvest was gathered, which, from its abundance, placed them again in an independent condition, with a bright and prosperous future before them.

After the above appropriation was made I issued a proclamation thanking the generous donors in behalf of the State, and adding that provision having been made for the future, individual contributions were no longer necessary. The transportation free of donated goods by most of the railroads, the same generous action on the part of express companies, and the free use of the wires of the Western Union Telegraph Company, as well as the generous and efficient action on the part of the press in carrying on the great work of affording relief, call for kindly remembrance and acknowledgment.

Acknowledgments are also due to the gentlemen composing the State Fire Relief Commission for the gratuitous, long-continued, and laborious task performed. Reference is made to the very complete report of the Commission printed in pamphlet form.

IMMIGRATION AND THE GROWTH OF THE STATE.

In my opening message to the Legislature of 1881, I invited attention to the large number of acres of unoccupied lands which were open to settlement and cultivation, and asked authority to appoint a Commissioner of Immigra tion and an appropriation to carry his work into execution. Both were promptly granted, the appointment of a most efficient officer was made, and it is believed to be largely through the work of the office thus established that upwards of fifty thousand settlers have been added to the agricultural class of our population during the past year. The most important agency in this labor has been the publication and distribution of the pamphlet entitled "Michigan and its Resources," about 37,000 copies of which have gone abroad through the United States and Europe, together with more than 7,000 copies of pamphlets in which its substance was translated into the languages of Germany and Holland.

The wealth of the State has been materially augmented by this action, and the sales of its unoccupied farming lauds exceed in quantity those of any former year. This office, during the eighteen months of its existence, has greatly broadened and deepened the public appreciation of the resources of Michigan. It has diffused through other communities and countries a more accurate knowledge of the greatness of the State than ever before existed, thus holding out attractions of the most substantial character to the best

class of seekers after new homes. No less important has been its work in impressing upon the people of Michigan the realities of the development in which they have shared and whose benefits they are enjoying. The keeping within the State by this means of many citizens who were inclined to look elsewhere for places of permanent settlement has been one of the especially valuable results of the Commissioner's labors. The plan of this office contemplates making it a central bureau of information concerning Michigan and its great interests, whose publications shall keep fully abreast with the growth of the commonwealth, and whose constantly augmenting stores of information shall be accessible at all times, not merely to the new comer, but to citizens of every class. Properly administered, it cannot fail to yield resuits of great value to the State. Its total expense to the present time, including salaries, printing, cost of paper stage, advertising, and all other items, is about $15,500.

It gives me pleasure to attest my appreciation of the skill, intelligence, and fidelity with which Col. Fred Morley, the Commissioner appointed by me, has discharged his duties.

REVISION OF THE TAX LAWS.

The tax laws of the State were complex, voluminous, and incongruous. They had been added to and amended until there was little certainty as to the real construction to be put upon their various provisions. I called the attention of the Legislature to these defects and to the accumulation of tax titles acquired by the State for delinquent taxes, and recommended that authority be given for the appointment of a Commission for the purpose of a general revision of the tax laws and the adoption of an improved system. The recommendation was adopted and authority conferred upon me to make the appointment. Under this authority John Moore of Saginaw, Charles A. Kent of Wayne, Herschel H. Hatch of Bay, Ebenezer O. Grosvenor of Hillsdale, and William Chamberlin of Berrien were named as such Commission. They entered upon their work and reported the result for action at the extra session subsequently held. The work of the Commission was so thoroughly and intelligently performed that the bills reported by it were enacted into laws by the Legislature without material modification. It is reasonable to expect that the operations of these laws will insure the prompt collection of the revenues of the State, will carefully guard the rights of the property holders, and will enable the State to give a valid title in case of a resort to sale of realty for the nonpayment of taxes. It will also restore as tax-paying property millions of acres of land that the owners have long since abandoned paying taxes ou, and enable the State to realize some portion of the large sums advanced on bids for delinquent taxes on these lands, by sales of the interest of the State to be made under a scale of graduated prices adjusted according to the time that shall have elapsed before sales are consummated. It will also clear up the mixed titles to these lands arising out of the claims of the State, and restore them to sale for actual settlement.

STATE SWAMP LANDS.

From the report of the State Swamp Land Commissioner for the fiscal year ending September 30, 1882, the amount of swamp lands in the Lower Peninsula subject to appropriation or sale was 49,668.60 acres. At a subsequent meeting of the Board of Control appropriations were made aggregating 13.980 acres, leaving 35,688.60 acres at this date. It is estimated by competent

authority that when all the lands now reserved on contracts and under special appropriations are selected the remainder will be of little or no value. Adopting this view, the Board of Control, at its meeting in December last, resolved that it was inexpedient to make further appropriations until selection of lands to satisfy all outstanding contracts and appropriations be made, and the remainder of the lands be examined as to value. Contracts for constructing roads and ditches to be paid for in worthless lands might place the State under obligations to pay from other means. I fully concur in the action taken by the Board of Control. For further particulars reference is made to the appendix.

UNPATENTED SWAMP LANDS.

In the list of swamp lands granted to the State by the United States there were 1,714,587 acres in excess of the amount subsequently patented. The Commissioner of the State Land Office has caused lists of these unpatented lands to be prepared for use in settling with the Government. Arrangements are partly perfected to adjust this claim on behalf of the State. It is expected that the Government will convey to the State what lands it still has applicable to the grant and settle for the deficiency found to be due in money. The preparation of these lists covered four years of continuous labor, and success in securing the rights claimed will depend upon the fidelity and energy with which the work is prosecuted at Washington. Reference is made to the report of the Commissioner.

NEW ASYLUM FOR THE INSANE.

The number of the insane had increased so that more provision for their care was imperative. This necessity was presented to the Legislature with the recommendation that an appropriation be made for the erection of an additional asylum. The appropriation was made, the site has been selected and purchased, and the contracts for construction let, with every prospect of prompt completion and within the appropriation. In addition to the site purchased, a provisional contract has been made for fifty-six acres of adjacent land, with the firm of Hannah, Lay & Co. This is deemed to be very desirable for the future good of the asylum, but under the provisions of Act 107, Laws of 1873, it cannot be legally transferred to the State in consequence of Commissioner Hannah being one of the above named firm of Hannah, Lay & Co. I recommend that the law be so modified as to permit this transfer to be made. For a more detailed statement reference is made to the report of the Board of Commissioners.

MICHIGAN ASYLUM.

On examination of this asylum it was found to be in good condition with a few exceptions. The old system of heating was inadequate and very expensive for fuel. I recommended an appropriation of $40,000 for an improved method; the amount was appropriated and the improvement made, resulting in a more generous supply of heat, better ventilation, and with a consumption of less than 3,000 tons of coal for the first year, while for previous years the average was over 5,000 tons.

This was the first asylum for the insane built in our State, and its construction was continued over a term of some thirty years. The fragmentary mode of construction necessarily has added to its cost and detracted from its appearance. Appointments that when made were abreast of the times are now out