renders it impossible to invest, and on which the state is paying 5 per cent under the provisions of the federal statute.

I recommend that permission be granted to invest all our educational funds at current rates of interest.

OFFICIAL BONDS

The question of official bonds impresses me as worthy of your consideration. The operation of guarantee companies within this state is authorized by law, and persons charged with the responsibility thereof are empowered to accept the obligation of these associations and companies. The facilities for obtaining surety, without asking individual friends, being thus within the reach of those elected to official position, renders it more embarrassing to pursue the course previously necessary. The bond of the treasurer of state is fixed by statute at $300,000, and the minimum charge for this amount of indemnity by any reputable guarantee company would, until recently, have been $1,100 per annum. The salary of the treasurer of state is fixed by statute at $2,200 per annum, which is insufficient to justify such an expense. It follows that the friends of this officer must tender personal security which has a market value of $1,100 per annum, and the treasurer is constrained to accept this gratuity solely because his salary will not justify his independence.

The Twenty-seventh General Assembly levied a special tax upon foreign insurance companies. The insurance companies paid to the treasurer of state over $300,000 in pursuance of this law, pending suit to test the constitutionality of the act. Fortunately for the treasurer, the statute was sustained. If it had not been, as expressly stated in the opinion of the supreme court, the treasurer would have been liable upon his bond to the insurance companies from whom he had received this money for the full amount thereof. If he had refused to collect it, he would have been likewise liable to the state, and might have been impeached. It follows that the risk assumed is not predicated solely upon the question of dishonesty. I have instanced the case of the treasurer of state as an illustration of the hardship of requiring a public officer with a meager salary to pay for his own bond, and also to show that the utmost good faith may not in all cases avoid a liability.

I recommend that sureties upon official bonds be procured at the expense of the state, county, or municipality served. A maximum rate should be fixed, and this maximum which the public should be called upon to pay should be the minimum at which any reputable company will furnish a bond of like amount under the most favorable circumstances. Then, if the officer's previous record or the methods of his office be such as to require a higher rate, the fault is his own, and he should bear the additional burden. This may seem an extra charge upon the public, and might suggest at first blush an increase of defalcations. I think quite the opposite would be the result. These guarantee companies watch the conduct of those for whom they have become security much more closely than do individuals, and are far more exacting in many ways than neighbors and friends. This increased surveillance is worth all it costs the public.

TREASURER OF BOARD OF CONTROL.

It is the present practice to examine quarterly the accounts of the state treasurer with special reference to the funds belonging to the various institutions under the management of the board of control, as well as those connected with the general revenues. I think the recommendation of the treasurer of state that this should be made a statutory requirement is worthy of your consideration.

GOVERNOR'S SALARY.

The salary fixed by law for the chief executive of the state is now $3,000. In addition, it has been customary for the general assembly to specially appropriate $500 per annum for work on the executive council, and $50 per month for room rent. This is manifestly below the necessary expenses of a family in the city of Des Moines maintained amid surroundings becoming the office. I question whether the people of the state would be satisfied to have their chief executive live in rooms that can be rented for $50 per month. Most of the states of the United States have executive residences, furnished and maintained largely at state expense. If this shall not be the policy of Iowa, sufficient should be provided, I think, to pay the rent of a suitable residence.

The judges of the supreme court and the attorney-general each receive $4,000 per annum, and by common consent are excused from many demands legitimately made upon the time and resources of the chief executive. Most of these officers reside outside of the capital city, where they can live much cheaper and give at least some little attention to private affairs. The board of regents found it impossible to obtain a president for the State University, of recognized ability and standing in his profession, for less than $6,000 per annum, with the tacit understanding that it should be increased within a limited period to equal the salary paid by most other states for similar services. The salary of the chief executive of Iowa is far below that paid in most of the states. One prosperous commonwealth, however, until recently paid only $1,000 per annum, and relied upon men of immense wealth to fill the office; and while there has been no dearth of candidates a large number of competent men were necessarily barred from. aspiring to such honors.

I recommend that the salary of the chief executive of Iowa be increased, and that such provision for a suitable residence be made as may seem to comport with the dignity of the state. This increase of salary, however, should begin January 1, 1902. It would be inappropriate to increase the salary of any officer during the term of office for which he has been elected; and if that were done in this instance the present incumbent would not accept the same.

PRIZE FIGHTING.

There is at present a statute prohibiting what is called "prize fights," but the language employed is not sufficiently comprehensive to be effective. In order to be brought under the purview of the inhibition, the contest must be for a prize, and the winner must receive more than the loser, else there is no prize. In practice, the law is evaded by designating the fight as a contest of a limited number of rounds (no matter how many), and a written contract that the participants shall receive equal or stipulated sums in no manner made to depend upon results. Then the actual terms are arranged on the side. The statute should forbid contests where physical injury, pain, or exhaustion is manifestly involved and contemplated.

I recommend that the brutal practice be either effectually suppressed on Iowa soil, or that the present inefficient statute be repealed. Of course, I prefer the former.

CORPORATIONS FOR PURPOSES OTHER THAN PROFIT.

The code of 1897 contains provisions for the creation of corporations for the establishment of churches, colleges, libraries, and fraternal societies, and for many other charitable, scientific, political, athletic, military, and religious purposes, which, according to the language of the statute, "may take, by gift, purchase, devise, or bequest, real and personal property for purposes appropriate to their creation." There is, however, no statutory provision for mortgaging or exchanging the property thus acquired. While these associations are not formed for the purpose of buying and selling property, yet common experience, I think, justifies the recommendation that provision should be made for alienating or incumbering such property, as the demands or wishes of such societies may dictate. This may be included in the implied powers of corporations generally, but not more so in this class than in those organized for purposes of pecuniary profit; and, as authority to dispose of property is expressly given the latter, all doubt would be removed if the same prerogative were extended to these none the less important organizations.

NOTARIES PUBLIC.

The statute now allows a notary public to officiate in any county adjoining that of his residence, after having first filed with the clerk of the district court of such county a copy of the certificate of his appointment. I think the law should be so amended as to require a record of this extended official authority to be made in the office that issued the original, and I respectfully suggest the propriety of having the certificate authorizing official acts in this enlarged territory issued from the office of the secretary of state, instead of, as at present, by the clerk of the district court. By this means only can the extent of authority of all notaries public be promptly investigated and determined.

The term of office of all notaries public is made to expire on a single date. Would it not be well to graduate the fee charged

for commissions, so as to allow those who have only a limited period to serve, to pay somewhat less than those for the full term?

COMMISSIONERS IN FOREIGN COUNTRIES.

Chapter 14 of title III authorizes the governor to appoint commissioners in other states empowered to administer oaths, take depositions, certify affidavits, and take acknowledgments or proof of deeds and other instruments for use or record in this state. Some of the other states of the Union have made provision for the appointment of such commissioners resident in foreign countries. At present such papers may be executed before any diplomatic or consular representative of the United States, who is authorized to issue certificates under the seal of the United States. It has been suggested that, in many instances, it would facilitate business transactions to have such commissioners appointed for the state of Iowa, resident in foreign countries and in the distant possessions of the United States, and I submit to the general assembly the wisdom of making provision therefor.

CONSTITUTIONAL CONVENTION.

In accordance with the requirements of section 3 of article 10 of the constitution of Iowa, the question of holding a convention for the purpose of revising the fundamental law of the state will be submitted to the electorate at the next general election. It will, therefore, be incumbent on the present general assembly to make provision for canvassing the vote on that proposition.

CONCLUSION.

In the confidence that the Twenty-eighth General Assembly will sustain the reputation enjoyed by its predecessors, and as justified by the legislative history of Iowa, the foregoing observations are respectfully submitted.

Leslie MIlian

JANUARY 8, 1900.