that the increase has exceeded 67 per cent over the two years just prior there

to.

An interesting feature of the report is that the present incumbent in that office is of the opinion that notwithstanding the continued anticipated in-date system of bookkeeping and has made crease in the business of the department that the present office force will be entirely sufficient to take care of it expeditiously and satisfactorily.

I invite your attention to that portion of the report of the Secretary of State with respect to his recommendations concerning a change in a number of the corporation laws.

The State Board of Control.

are purchased. The purchases are made
upon a competitive basis by sealed bids
and the contracts and purchases han-
dled by the Board during the past year
aggregate approximately $4,000,000.
The Board has installed an up-to-
provision for the checking of all bills
before being passed to the Comptroller
for payment. The bill is not only ap-
plied to the contract but the extensions
and footings on each invoice are veri-
fied, the result of which has been the
discovery of numerous mistakes most
of which I am informed have been
against the State.

An interesting feature of the report is disclosed in the fact that the cost of

The report covered by this depart- operating these departments under the ment embraces only one year in that Board of Control is only $744.56 per the department is practically in its in-month, more than under the old method, faney, having begun operations January which amount is greatly overbalanced 1, 1920. The Board of Control was by the saving effected annually in the created by an Act of the Thirty-sixth purchase of supplies, etc. Legislature during the Regular Session but by a subsequent amendment, the date of its organization was made effective January 1, 1920.

the Board embraces a number of recomThe report as it will be presented by mendations with respect to needed recommend your careful consideration of amendments to the present law and I the amendment suggested.

The Attorney General's Department.

The biennial report of the Attorney General is at this time in the hands of the printer but will be available for your membership shortly.

The duties of the Board contemplate the administration of the laws relating to the various offices, departments, boards and institutions which were consolidated by terms of the act, namely, the State Expert Printer, the State Purchasing Agent, the State Superintendent of Public Buildings and Grounds, the State Inspector of Masonry, Publie Buildings and Work, the Board of A summary of the report as furnished Public Printing, and the Board of Man-by the Attorney General discloses that agers of each and all of the eleemosy-the business of the legal department of nary institutions of the State. the State government for the past two years is greater than that of any other counted for by reason of the general inbiennial period. This increase is crease of business following the close of the war and the various new laws enacted assigning additional duties to that. department.

The Board under the terms of the act is authorized to combine its work

into such divisions and subdivisions as may be necessary to accomplish the purposes for which it was created.

ac

During the biennial period just closed, the department handled a total of 347 cases and disposed of 217. The department has rendered 305 formal opinions, and has written approximately 33,900 letters.

Through the division of public printing is handled all of the stationery and printing requirements of the State aggregating approximately $400,000.00. Since the operation of the Board began this division alone has effected a material reduction in the annual cost of stationery and printing. An explanaThrough the efforts of the Attorney tion of the manner in which this was General, the State during the past bienaccomplished is embraced in a copy of nium recovered 15,708.7 acres of land. the printed report of the Board to which In the cases now pending before the your attention is invited. A conserva-courts, a total acreage of 126,401 acres tive estimate on one class of the stationery contract alone has been placed at $35,000 to $50,000 per year.

Through the purchasing division of the Board, all the supplies used by the various institutions and departments with the exception of the Prison System

is involved exclusive of the land involved in the Red River Boundary suit. Since the close of the fiscal year, there has been recovered in the Capitol Syndicate case 60,896 acres of land.

Each of you, of course, are familiar with the Red River Boundary suit which

involves approximately 1000 miles of the northern and western boundary of Texas and is the largest suit of its charter ever filed in the Supreme Court of the United States. This case alone during the past biennium has engrossed the attention of a large portion of the lawyers and clerical force of that department continuously during the past two years.

Board met, the sum of $5,336,375.59 was in the treasury unappropriated, and in fixing the tax rate this sum was taken into consideration.

ceeds any sum to its credit prior to The permanent school fund credit exthis time, the bonds of the fund having increased more than $3,000.00 during the past two years. There is a balance in the available school fund of $1,713,817.01 which balance is considerably greater than the balance in the fund at any previous time.

The record of the present Attorney General, Hon. C. M. Cureton, with his able corps of assistants is without parallel. The legal victories won by and for the State during the last four years in a I have communicated to you in a sepperiod of new and far-reaching laws arate communication, the earnings of and the settlement of many cases in the State, by reason of investments in volving State property of large value United States give evidence of how fortunate the State made by the Treasurer under authority government securities is to have this important department in given by the Legislature and in my comhands as watchful of the State's inter- munication with respect to the enactest and so capable of defending them.ment of a depository law is disclosed The department has approved 1347 the earnings of the State under this bond issues involving a total indebted-statute. The depository system is comness of $91,907,761.02. posed of 87 National and 118 State banks.

Your earnest attention to the recommendation of the Attorney General as embraced in his printed report is cordially invited.

It is gratifying to communicate to you the condition of the Treasury which is better than at any time previous, and I respectfully urge your interested conThe Department of Insurance and Bank-sideration of the printed report when it is available.

ing.

The Comptroller's Department.

Reference is here made to the Fortyfifth annual report of the Commissioner of Insurance and Banking. Particular The report of this department simply attention of the membership of your coincides with that of the Treasury De body is invited to the recommendations partment with respect to State funds. as contained in the report, some of I am unable to give you a summary of which I believe are necessary to the this report which is now in the hands further development of the State Bank of the printer and will be distributed ing System, which has shown a steady among your membership as soon as the growth during the past few years. I printed copy is available. am cognizant of the difficulty experienced by that department during the past three years in procuring competent bank examiners, and in maintaining a sufficient staff to meet the requirements of the State, by reason of the insufficient compensation paid them. The Commissioner, in his report, has made recommendations with respect to this matter, to which I urge your careful consideration.

The Treasury Department.

The report of the Treasury Department covering the past biennium contains the information that the general revenue account at the close of this fiscal year has reached the highest point in the history of the State, the amount to the credit of the general revenue account being $8,840,758.79. The balance to this account on September 1, 1919, was $4,632,416.81, which was the highest sum remaining to that account up to that time. When the Automatic Tax

General Land Office.

The increase in the volume of business handled was perhaps greater in the Land Office than in any other department of the State government. This large increase was due to the discovery and the development of the oil resources of the State.

The report of the Commissioner not only contains a review of the business transacted during the past biennium but gives an interesting history of the growth and development of the oil industry in Texas, as well as much historical data with respect to the Land Office.

The remittances received by the department during the last biennium amounted to $7,699,418.96, which exceeded the receipts of the previous biennium by $3,170,712.18. The sale of all of the surveyed public school land was practically completed May 2nd,

1920. The Commissioner advises there will be some further sales by reason of forfeiture as well as a few unsurveyed scraps which will be found. He reports the total permanent school fund to be $71,892,959.93 received from the sale of school land including receipts from some mineral developments.

State Highway Department.

From the efforts of the department, the American Red Cross has made availThe report of this department disable for public health work under the closes that the State's share of the rev-direction of the State Health Departenue from motor vehicle registration was ment, $250,000 annually and through $3,439,969.64 of which amount $2,873, the cooperation of the Red Cross organ225.56 was available for State aid. ization the department was enabled to organize a Bureau of Child Hygiene through which much good has been accomplished.

During the period of 1916-1920, Texas pro rata share of Federal aid was $16,100,404.77. On December 1, 1920, the department was engaged with a total of 384 active projects, an increase in the two years of 258. Involved in this work is mileage to the extent of 4082 miles, an increase over the last two years of 2576 miles. Of this amount 976 miles have been completed and are under maintenance, with 2039 miles at present under construction.

In July of the past year, the department was confronted with a very grave problem when bubonic plague made its appearance in the cities of Galveston and Beaumont. By reason of this menace, the State and Federal governments and the municipalities involved expended approximately one million dollars in the plague work. Apparently the work acThe increase in the amount of Federal complished by the department has been aid appropriated to active projects dur- more effective than has been the case the past two years was $11,294,481.86; in any other infected district or port. the increase in the State aid allotted It has been more than two months since during the two years being $1,681,382.68, | a case of human plague has been rewith a balance in the State Highway ported and more than six weeks since Fund of $2,365,368.32.

The total operating expense of the department for the biennium just closed were $329,606.05.

The registration of motor vehicles has increased during this period from 250,201 to 422,476.

an infected rodent has been found.

The recommendations of the State Health Officer as contained in his printed report are commended to your consideration.

The Department of Agriculture. The department has received from the The report of this department disFederal government equipment appro- closes the various lines of activities priations: 1161 trucks, 168 automo- engaged in by it together with the rebiles, miscellaneous construction equip-sults accomplished. In the report which ment to the value of $970,462 or a total of $4,335,091. A large portion of this equipment has been distributed to the various counties of the State including 1006 trucks and 120 automobiles.

State Health Department.

is available for your membership, you will find that the retiring Commissioner has made a number of recommendations which he deems important to the welfare of that department.

Pure Food and Drug Department.

There is contained in the sixth biennial report of the retiring Commissioner, R. H. Hoffman, Jr., much interesting data and valuable information with respect to the functions performed by the

This department has perhaps accomplished more during the past biennium than during any other period of its existence. One of the first acts of the department under the new administration was to cause to have made an in- | department. dexical survey of the health conditions throughout the various sections of Texas. The result of this survey has been compiled and completed and will be at the disposal of your membership as soon as publication is completed.

In accordance with an act of the Thirty-sixth Legislature, the border and Coastal quarantine has been transferred

A comparison is made in this report of the work of this department with that of the United States Food and Drug Department which discloses that the appropriation for the past fiscal year of the United States Food and Drug Departinent was $893,426.06 as compared with $54,950 for the State Food and Drug Department. The United States

department procured 244 criminal con- partment during the past year were victions as against 573 by the State greater than the combined revenues for department. The Federal department the preceding four years. It is also collected in fines $18,160 as against shown that during the past biennium $22,105.15 collected by the State Depart-there has been a very decided increase in ment. In addition to the fines collected, our native game and the Commissioner this department collected in fees $10,

The total number of samples of food and drugs analyzed by the Texas department was 5816. A total of 538,142 pounds of food unfit for human consumption of the various sources from which tion was destroyed. the revenues of the department are derived.

September 1, 1919, was made possible lege rank have been greatly differentiatby an appropriation for that purpose ed, which assures more efficient instrucat the hands of the Thirty-sixth Legis- tion in both college and elementary lature. In a summary of the amount of produce handled through the agency of this division, the value of same is given as aggregating approximately $3,

454,000.

The Division of Weights and Measures was also provided for by an act of the Thirty-sixth Legislature. This division has under its supervision the Uniform Weights and Measures Law.

The Gin Division has under its supervision 3415 gins which the department under the law is required to inspect annually.

I can not too strongly urge not only the continuance but the strengthening of the work of this department as or ganized at the present time. It should be provided with all facilities essential towards realizing the purposes which caused its creation.

A warehouse and marketing system is always urgent in a State whose basic industry is agriculture. Such a department now, however, is of unusual importance because of the general demor alization which has prevailed in the past few months and continues to prevail in all markets where agricultural products are sold.

courses.

Attention in this report is directed to the necessity of good salaries in order to procure high class talent in the faculty of the normal colleges, the main duty of which is to train the public school teachers.

At the crisis in normal school salaries the Special Session of the Thirtysixth Legislature made an appropriation enabling the normal schools to increase the salaries of teachers in an amount of approximately 20 per cent.

State Reclamation Department.

clamation Engineer is at this time in The biennial report of the State Rethe hands of the printer and will shortly be available to your membership.

Board of Water Engineers.

The report of this department as sunmitted to me has been transmitted to the printer, and will be distributed among your membership as soon as the printed copies are available.

Commission of Appeals.

Since the Commission of Appeals was created I am advised that 450 causes have been referred to it by the Supreme Court. Of this number, 392 have been disposed of, 80 of which have not been finally adopted by the Supreme Court; 44 are now under submission before the Commission, and the 14 remaining have

I believe that a perfected warehouse and marketing system such as this department is seeking to weld together should receive encouragement and support at your hands to the end that the agricultural interests of the State may be served in the more practical manner. I also urge the enactment of such leg-been set for hearing. islation as will permit farmers to form co-operative organizations to assist and protect them in the most profitable and feasible system of marketing that may be put in operation.

State Normal Schools.

This branch of the State educational institution embraces six normal schools, as follows:

Southwest Texas State Normal, San Marcos, Texas.

North Texas Normal, Denton, Texas. West Texas Normal, Canyon City, Texas.

East Texas Normal, Commerce, Texas. Sul Ross Normal, Alpine, Texas. During the past two years, the report of the Board of Regents of these institutions is authority for the fact that normal college standards have improved materially. The work of elementary character and the work of col

The data given above discloses the effective work done which has assisted materially in relieving the congested condition of the Supreme Court docket.

Prison Commission.

The importance of this branch of the State government is such that I deem it advisable to communicate same to you in a separate message.

Other Departments.

I am unable to give you a summary of the business transacted by the departments omitted by reason of the fact that the biennial reports of same are now in the hands of the printer and are unavailable for use. I invite the attention of your membership to these printed reports when they are made available. Respectfully submitted,

W. P. HOBBY, Governor of Texas.