business of the university and be in its interest to have much of its business done by committees, but where that is attempted and the statute is silent as to the powers of the committees, their duties should be prescribed and limited in clear terms of general application to classes of acts or in specific terms for particular cases, and the records should be so kept as to show the separate acts of each committee, as, by keeping a record of the proceedings of each committee in a separate book.

In our last report we objected to a practice by which claims against the university were audited by a single member of the executive committee, and paid. That practice has been abated to a considerable extent, but still prevails. In one case of four claims audited at one time, one was approved by two members of the committee and three others by but one. Whether the three claims were disapproved by one member, we are not advised, but it appears that if both approved, both could have written their approval on the vouchers. We do not think any claim should be allowed or paid except on the affirmative action of at least two members of the committee.

In a few instances claims allowed did not show the purpose for which they had accrued. While it may be true that a claim. within the personal knowledge of the executive committee can be properly allowed without such a showing in writing, yet we think it is the better, as it is the general practice of the committee to require such a showing with each claim that third persons may know from an examination of the papers filed whether the claim is within the purposes for which the university is maintained.

In one instance a bill for expenses incurred by a regent, who traveled extensively outside the state for the university, was allowed, although no itemized statement of the expenses incurred was filed. We think such a statement should have been submitted.

LANDS.

The university land comprises 2,858 40-100 acres, located in fifteen counties of the state. Four hundred acres yield an annual revenue of $295, and the remainder of the land is unproductive. Some of it is poor and can be expected to yield very little, but it would seem that more revenue than is obtained should be derived from the lands. We are unable to learn that systematic. and persistent effort is made to increase the revenue from it.

HOSPITALS.

The financial affairs of the two hospitals under the control of the university were found to be well managed. Supplies therefor are purchased with proper regard for the interests of the patients and the state, and the receipts from patients are properly accounted for and paid to the secretary.

CONCLUSION.

The matters which we have criticised form but a small part of the financial transactions and general business of the university, and they appear to be the result chiefly of lack of attention. to details rather than to any inclination to disregard the law or the best methods of procedure. The great bulk of the business is conducted with ability and fidelity. Important contracts are awarded only after full and fair opportunity is given to all who desire to compete to do so, the contracts are properly let, and with the exceptions suggested, the matters in charge of the university officials appear to have been managed in an economical and business-like manner, and its funds appear to have been expended for authorized purposes. On the whole, there is but

little to criticise and much to commend in the business methods of the university.

IOWA STATE COLLEGE OF AGRICULTURE AND MECHANIC ARTS.

In accordance with the requirement of sections 51 and 53, chapter 118, acts of the Twenty-seventh General Assembly, we made, on the first, second, and third days of October, 1901, an investigation of the books and accounts of the Iowa State College of Agriculture and Mechanic Arts, for the biennial period ending June 30, 1901.

We carefully examined all the accounts, the receipts and disbursements for the biennial period, and read all the minutes of the board of trustees for the same time. The minutes are so full and well prepared, and the accounts so carefully kept, that there was no difficulty whatever experienced in ascertaining the business methods followed by the board of trustees, or the amounts received and disbursed by the treasurer of the college.

In the matter of purchases, there is certainly room for improvement; too many articles being bought at the highest retail prices. On the attention of some of the officers being called to this condition, we were informed that each professor at the head of a department is allowed a specified sum to expend in conducting the

work assigned him, and each one made purchases as he considered necessary. The bills when presented were certified as correct by the party making the order, and after being audited by the proper officers, were paid by the treasurer. It would seem that a well posted business man, knowing the value of the articles purchased, and with a practical knowledge of business methods, should be chosen for this work, and that, instead of so many different persons making purchases and handling the property of the state, a store-room should be provided, the articles purchased at wholesale, and disbursed, as needed, on the written order of the proper person.

An examination of the bills allowed showed that considerable sums of money have been expended by officers of the college in traveling expenses and hotel bills, some of which are of doubtful utility. Some bills of this character appear to have been contracted without sufficient authority.

Some criticism having been made in regard to the expenditure of the $10,000 appropriated by the legislature at its last session for the purchase of pure bred stock for the college, a list of the animals bought, and the prices paid, is herewith submitted. Following are the purchases of stock made from the PURE bred STOCK fund:

Third Airy May of Maple Hill and calf (cow and calf).............

432.00

While these prices will be considered by many somewhat high, still the best that can be secured is none too good for the Iowa State Agricultural College, and if these animals have been judiciously selected, both as to breeding and individual merit, they will prove not only valuable from an educational standpoint, but with proper management be a source of revenue to the college.

We herewith append the financial statement for the biennial period ending June 30, 1901, as prepared from the books and vouchers by A. B. McCown, chief accountant of the board.