economical to advance moneys from the General Fund than to pay interest on additional War Bonds. The advances thus made are $120,387 04, and hence the War Fund stands overdrawn to that amount at the close of the fiscal year. Besides interest paid on War Bonds, the warrants on the War Fund, drawn on estimates of the Quartermaster General, were to a large extent for State bounties paid to volunteers of the old regiments, and also to some extent for expenditures, which are chargeable to the United States, and finally to be refunded by the General Government. The last report of my predecessor states that after deducting our quota of the national tax, and also an amount of $92,000, previously refunded by the National Government, there was due to the State, at the close of the fiscal year 1862, a balance of $114,493 45. Additional accounts and vouchers have been forwarded to the Secretary of the Treasury during my term of office, which will increase this indebtedness considerably; but as far as I have been able to ascertain, nothing has been done yet towards adjusting our claims. On the 6th day of March I forwarded to the Secretary of the Treasury, per American Express Company, a package of accounts and vouchers, and notified the said Secretary accordingly; and having received no reply, I wrote again in July, inquiring whether said package had been received and any steps taken towards adjusting our accounts. In answer to this inquiry, I received a communication from Washington, signed by the Third Auditor of the Treasury Department, and setting forth that the accounts and vouchers in question had never reached the Department. Upon this, I immediately forwarded to the said Third Auditor the receipt of our Express Agent, but up to this day I have not been able to find out whether our accounts and vouchers have reached the Department at Washington, nor even whether or not the receipt of the Express Agent has come into the hands of the said Third Auditor, though I have written to that officer several letters of inquiry since. Considering these facts, I suggested to you some time last fall the propriety of my going to Washington for the purpose of examining into the matter, and I still entertain the opinion that something should be done in this direction by our State Administration. Under Act 31, laws 1863, I have set apart for a Soldiers' Relief Fund the sum of $20,000, and, on application of the Governor, drawn my warrant for an amount of $5,000 out of this Fund. The receipts into the Educational Funds have been larger during the year than anticipated in the last report from this Department, exceeding the receipts for 1862 over 100 per cent. Besides the $71,000 00 which were invested in war bonds, as mentioned before, an amount of $45,000 00 has been applied toward redeeming the temporary loan (authorized by Act 6, laws 1858,) and a balance of $16,400 00 stands, subject to investment in bonds of the State, under Acts 122, laws 1861, and 134, laws 1863. The receipts for tolls into the Sault Ste. Marie Canal Fund have also been larger than last year, amounting to $19,955 00 over and above the current and ordinary expenses. After deducting the interest on the canal loan from these receipts, the sum of $13,805 02 will be applicable towards refunding the taxes paid on canal lands, to the respective counties. (Joint resolution No. 13, laws 1861.) In the case "Superintendent of Public Instruction vs. Auditor General," for a writ of mandamus in regard to certain moneys claimed for the Primary School Fund, recently decided by the Supreme Court, that Court holds, that under Act 31, laws 1858, the Primary School Fund is entitled to 50 per cent. of the proceeds of all actual sales of swamp lands, at a rate of interest of 5 per cent. per annum. The moneys due the Primary School Fund from the Swamp Land Fund will be so applied when official information of said opinion is received at this Department. The receipts into the Swamp Land Fund have been sufficient during the fiscal year to pay about $20,000 on time warrants, so called, and on completed road contracts, and there is good reason to anticipate that during the next year the entire balance of such warrants and contracts can be paid. Table D, exhibits the specific taxes collected from corpora tions, &c., and the arrears of some companies. The case of the M. S. & N. I. Railroad is still pending in the Wayne Co. Circuit Court, and I understand that an early decision is expected. The last page of this report exhibits the amount of copper produced by the different mining companies of the State. It has not been customary heretofore to attach this table to the report from this Department, but as mining, especially copper mining, is growing more important every year, I think I am justified in making this addition. The State tax for 1863, which I have levied in accordance with the various Acts of the Legislature, and apportioned among the different counties of the State, consists of the following items: 21,506 98 Two mill tax, under Act 110, laws 1863,........ $344,111 62 1th mill tax, under sec. 6, Act 122, laws 1861,... 1-16th mill tax, under sec. 6, Act 1, ex. ses'n, '61, Military tax, under sec. 93, Act 16, Appropriations for building purposes for Insane 10 753 49 '62, 19,628 70 Asylum, Act 137, laws 1863,.... 29,000 00 Appropriations for building purposes for Deaf and 15,000 00 Total am't of State tax apportioned for 1863,.. $440 000 79 As our State Legislature will soon be convened in extra session, I think it important to call attention to a deficiency in our present tax law, by which this Department is greatly embarrassed every year. Our tax law provides that returns of delinquent taxes shall be made to this office at or within a certain time, and also, that lands shall be sold for delinquent taxes at a certain time, but does not fix any time within which county treasurers shall make their returns of such tax sales to this Department. It happens every year, and has also been the case this year, that by some of our county treasurers these returns are withheld until December, and even longer, and thus this Department is greatly embarrassed in making up the yearly accounts and its annual report. I would, therefore, earnestly recommend that our present law be so amended as to require the county treasurers to make their returns of sales to the Auditor General on or before the 15th of November, a time abundantly sufficient to make these returns even from the most remote counties in the State. Respectfully submitted. EMIL ANNEKE, |