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with a view to further perfecting it. The basic idea of the law is that the injured workman shall be compensated as soon as possible and without litigation. The definite schedule of injuries enacted by the legislature has enabled the employer and employe, in a large number of cases, to decide between themselves what the verdict will necessarily be. This has not only relieved the workmen of the expense of litigation but has to a considerable extent relieved the state of the expense of sending inspectors to assist in settlement.

Nevertheless, the cost of conducting the affairs of the Industrial Commission has grown to a large sum. For the fiscal year ending June 30, 1914, the cost of the commission was $104,973.00. It seems that a large item of this cost is due to the expense of sending out inspectors on individual cases, and the ultimate perfecting of the law will result in materially reducing this part of the cost of administration. With a view to making settlements easier for the workman and his employer, and for the purpose of reducing the cost of administration, I recommend that the schedule be perfected, either by amending it where the commission has found it inequitable and unsatisfactory or by enlarging it to cover a greater variety of cases. I suggest for your consideration that the initial service in each case shall be performed by the county judge in the county where the injury occurred.

The law now provides that all appeals from orders of the commission shall be taken to the circuit court of Dane county. This provision makes litigation under the act unnecessarily expensive and is inconsistent with the spirit of the law. I would suggest that the law be changed so that cases appealed to the circuit court may be tried in the circuit where the claim originated.

Legislative Reference Bureau

The legislature of 1903 created a legislative reference library. Its purpose was to furnish information to members of the legislature upon such subjects as related to legislation. It has since been converted into a bill

drafting institution where proposed laws are furnished upon application without any further effort upon the part of the legislator. This system has had the effect of greatly increasing the number of bills introduced and has resulted in the passage of a great many useless laws. The legislature of 1913 passed 778 bills.

The purpose of the original act creating the library was good. However, we must now judge its value by the record it has made, which I believe to justify the statement that it has exercised an undue influence upon legislation. It has resulted in outside preparation of bills for legislative action, superseding individual legislative study, and greatly impairing legislative efficiency to act as the result of that individual judgment which members of such a body should devote to the work they were elected to perform. Originally projected as a library, it has in every sense become a bureau. I therefore recommend that the law creating the bureau, as it is now known, be repealed. This will have the effect of saving about $21,000 per year

State Printing

In this connec

The cost of state printing has grown to an enormous Each year has shown an increase tion the following table is interesting:

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The State Board of Public Affairs has recently investigated this matter and strongly criticizes the lack of system. The following statement appears in its report: "Evidence of waste and inefficiency are to be found on every hand resulting largely from practices which have been passed on to each succeéding administration. Such costs of waste as this study has disclosed are evidences of the inefficient past." The report would indicate that printed matter is ordered in too large quantities. It says: "Too many volumes are issued and there are too many pages in the volume."

A large quantity of printed matter that is now worthless has accumulated. The report states that 786,390 books and pamphlets are now stored in the south wing of the capitol building. It appears that one of the sources of expenditures is the cost of printing a large number of Blue Books, the last legislature having authorized the publication and distribution of 37,500 copies. Indiana issues 1,700; Ohio 8,000; Illinois 10,000; Minnesota gives fifty copies to each member of the legislature, and Iowa gives sixty copies to each member. Members of the last legislature in our own state received 250 copies each. The number of Blue Books authorized and printed is evidently too large and should be cut down to such a number as can be distributed among the people with profit to them.

The entire subject of printing deserves consideration and I recommend that some better supervision be established by law over the matter of public printing in order that useless publication may be eliminated and that some regard be had for the probable demand, thereby substantially reducing the expense.

State Insurance

It has been the policy of the state since 1903 to assume the fire risk on its own buildings. The insurance carried on state property by the state is reported by the commissioner as $17,670,000. In addition to this there is on the statute books of the state a provision that all property of

cities, counties, villages and school districts, after favorable vote on the part of boards or councils having charge of such public property, may contract for their insurance protection with the commissioner of insurance. The amount of insurance carried under this provision is reported to be $1,595,359, making a total of insurance carried by the state of $19,265,359. The insurance commissioner under date of December 18, makes the following statement concerning the condition of this fund:

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The Board of Regents of the normal schools have recently brought an action in court to compel the insurance commissioner to turn over to the normal school fund an additional sum of $106,800 in settlement of a loss caused by the destruction by fire of the state normal school at Superior. finally order the payment of this amount the insurance fund will show a deficit, either in case the state sustains a loss of the amount involved, which means that the premiums accredited to the insurance account in the past ten years have not accumulated a fund that protects the state against loss either by fire or tornado; in fact the state has lost a substantial sum of money by not insuring its property. If any considerable loss should occur at

It is evident from this that if the courts

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this time of the property of the counties, towns or villages
now insured with the state it would be necessary to pay
it out of the general fund, and this raises the constitu-
tional question whether the insurance commissioner has a
right to use money out of the general fund to pay losses
occurring to county or municipal property.

The present condition of this fund after an experience
of ten years demonstrates conclusively that state insur-
ance on the basis on which it has been carried on is a
failure. I believe this to be due to the fact that the value
of the units insured bears too large a proportion to the
total risks carried. Losses seem to occur frequently, and
the amounts are uniformly large, which seems to make
the project unsafe and therefore undesirable. I therefore
recommend that the present system of state fire insur-
ance be discontinued, and more reliable insurance be sub-
stituted therefor.

Highways

The state now is engaged in what is generally conceded to be an extravagant system of highway building. There is annually appropriated out of the general fund $1,200,000 for state aid, and $100,000 to the highway commission with which to carry out the purposes of the act. It must be borne in mind that in addition to this the towns. and counties which ask for state aid must each furnish an equal sum to that provided by the state. If the appropriation for 1914 is used the total amount expended on state aid roads for that year would be $3,600,000, exclusive of the expense of the commission and whatever the towns and counties might have expended for supervision. This amount is generally regarded by the people as excessive and burdensome to the taxpayers. The people generally wish to continue to improve our highways, but there is a widespread feeling that we should be more conservative in the use of public funds for that purpose.

It would seem that the first step necessary in proceeding with this project is to organize, under the supervision of a competent highway engineer, a staff of practical roadbuilders, and this, it is generally conceded, is difficult to

ANDIANA STATE LIBRARY

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