execution thereof, and it was found necessary to draw upon the General Fund, and provided in Paragraphs 98 and 2282, Revised Statutes, Civil Code, 1913, to the extent of $6,581.87. Funds for this purpose for, the ensuing two years must be provided by the Legislature. During the last two years we have been compelled, in order to retain׳ efficient employes, to increase the salaries in line with salaries paid in other departments of the State and in the commercial world. Two years ago we were employing clerical help, including, in some instances, good stenographers, for as low as $90.00 per month. Increased expenses in this manner will approximate $4,920.00. , . There has already been a great increase in the volume of work, making it imperative that we add additional help. This is particularly noticeable in our Public Utility work, which, by reasons of abnormal conditions prevailing, has necessitated many hearings, investigations and valuations. This is also true of the Rate and Incorporating Departments. From all appearances the* Rate and Utility Departments will be more active in the next two years than heretofore, as all public utilities are clamoring for adjustments of rates, and it is• a matter of common knowledge that the railroads propose to carry the issue to the Federal Government, which will necessitate frequent trips to Washington and other distant points to properly protect the interests of our citizens. Additional clerical help, including an Auditor, to assist in valuation work, accounts for approximately $10,440.00. As an illustration of the increased activities of this department, you are advised that from Statehood to July 1, 1919, there were 637 dockets or formal hearings on our register, while on July 1, 1920, there were 1127. Putting this into another, form, during 88J * months there were 637 dockets or formal-hearings, while in the. 12 months immediately’ following there were 490. Other increased expenses will be railroad and Pullman fares, telephone, telegraph and express rates, printing, paper, etc. We have also included $1,000.00 for the printing of public utility reports, which are required by law. At the time the Commission was organized a sufficient number of these annual reports were printed to last several years, the supply having been exhausted during the past year. Bids placed with all firms and individuals in Phoenix prepared to supply this kind of work indicate that the very minimum amount necessary will be $1,000.00. These reports cannot be dispensed with or even deferred, since such action would result in almost fatal defect in future rate cases. The law also requires that we print in pamphlet form for public use and distribution the Insurance Code. Our present supply having been exhausted, it will be necessary to incur an expense of approximately $500.00, as disclosed by bids, for this pfirpose. Very truly yours, A. E. STELZER, Secretary. December 7, 1920. Hon. Thos. E. Campbell, Governor, Phoenix, Arizona. Dear Sir :— Herewith transmitted is our Budget Report for the fiscal years ending June 30, 1919, June 30, 1920, and estimate of requirements for the fiscal years 1921-1922 and 1922-1923. Since our estimate of requirements for the coming biennial period is in excess of the appropriation for the past and current fiscal years, a brief explanation thereof is timely. The Second Legislature passed the appropriation bill on the evening of the last day of the Session. Senate Bill No. 60, Chapter 130, commonly known as the Motor Vehicle Law, was passed subsequent to the passage of the appropriation bill. The administration of this law was placed in the hands of this Commission. It involved an endless amount of work, including three sets of hearings covering the entire State, which were necessary to the proper establishment of rules, regulations, adjustment of rates and deciding upon applications which came before us. There were necessarily heavy expenses incident thereto. However, we want to say incidentally that notwithstanding the great amount of extra work involved and the expenses incident thereto, we believe this to be one of the most wholesome and beneficial laws enacted by our lawmakers since Statehood. We have had many expressions of commendation for this law. From these we wish to quote a letter received from Mr. Allan B. Jaynes of Tucson, under date of October 8th, as follows: “Lam advised that Frank Rondre is making application for renewal of his franchise from here to Nogales. I want to say that we have been doing business with him for about a year, and we have never had such splendid service for the Citizen. You, know he has the contract for carrying our paper. I have heard similar expressions from a great many Tucson and Nogales people who use this line, and no doubt you have been receiving the same report. Certainly we have not been having the complaints we used to have. It seems to me-that the arrangements which the Commission made here a year ago were very sat- . isfactory, and it has always seemed to me that notwithstanding the attacks which have been made upon it in the courts, the law giving the Corporation Commission jurisdiction in these matters was an excellent one.” Since this law was passed subsequent to the passage of the Appropriation ,Bill, no funds were provided for the administration and \