STATE AUDITOR AND SUPERINTENDENT OF BANKS
salaries, other than those of the Bank Examiners, against the Auditing Department, and all extra clerical assistance against the Banking Department.
In fixing my estimates for clerical assistance, I have taken into consideration the constant growth of our State Banks, both in numbers and in resources, and the ever increasing work of the Auditor’s office, due to each Legislature making larger appropriations than its predecessor. As to the increase for salaries of clerks and stenographers and for all office supplies and printing, it is not necessary for me to comment, as the ever growing costs of these items affects us all alike.
The salary of the Deputy Auditor and of the Chief Bank examiner I have placed at the same figure as my own, and while I do not consider that amount adequate compensation for men who can satisfactorily fill those positions, I * do not consider it possible that the Legislature would allow them larger salaries than the Auditor himself receives; however, should the salary of the Auditor be increased, I recommend that these two salaries be fixed at not less than $3,600.00 each per annum.
The only item in my estimates, aside from clerical assistance, which shows a marked increase is that for travel expense. There is little doubt that railroad and Pullman rates within the State will be increased to correspond with the recent increase granted by the Interstate Commerce Commission, and hotel rates still show a tendency to climb. There are also a number of banks located at points remote from the railroad, and the cost of reaching these is excessive. In addition there is the ever present contingency of bank failures, or trouble of that character, which always entails very considerable expense that cannot be foreseen or estimated. In fact, I believe that on account of that very contingency there should be an open appropriation for services and travel expense of the Banking Department.
All of the above recommendations for increased appropriations are made as the result of much consideration of the subject and in the light of four years’ experience as the head of the Departments involved, and at a time when no one can question my motives, for, as you are aware, my personal connection with this Department will be severed at the end of the year.
Respectfully submitted,	.
(Signed) JESSE L. BOYCE,
State Auditor and Superintendent of Banks.
Honorable Thomas E. Campbell,
Governor of Arizona,.
State House, Phoenix.
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Sir : ’■	.	.
In compliance with the law as set forth by Chapter 61, Laws of 1919, I have prepared and am transmitting, herewith, on the forms furnished by your Department, statements showing the appropriations, receipts and expenditures for the two fiscal years ending June 30, 1919, and June 30, 1920, the funds available for the current fiscal year, and estimates of the amounts that will be required to meet necessary expenses for the biennial period ending June 30, 1923. All of the above statements have reference only to the two Departments which are by law placed under my control, viz., the Auditing and Banking Departments of the State.
As these two Departments have been placed under the supervision of one official, it is obviously in the interest of efficiency and economy that the work of both Departments should be combined in one office, as to conduct two separate offices would almost double the overhead expense. The difficulty then arises of allocating to each Department its just proportion of the total expense of operation.	-
Upon familiarizing myself with the duties of this office, I found that it had been customary since territorial days to treat the Banking Department as a mere appendage to the Auditor’s Department and to assess against it only the salaries and expense with which it was directly chargeable, while the general expense of the office was all borne by the Auditing Department. This practice was patently unfair, and I requested and obtained from the last Legislature a larger appropriation for the Banking Department, but I have determined that the Banking Department is still paying less than its proper share of the total, and in the estimates furnished herewith I have endeavored to correct that condition.
You will noté that I have assessed the Banking Department with a full fifty per cent of the stationery and supplies, seventy-five per cent of the postage, and practically all of the travel expense. As it is not practicable to charge any particular salaries to the Banking Department, I have placed all