very much less than the statutory fee being accepted; in others, as appears by the records, widely different prices were exacted from dealers situated precisely alike and, in others, a tacit understanding or unwritten agreement existed, or was said to exist, between local boards and liquor dealers, that no license fee whatever need be paid.

The liquor traffic of the State was subject to the application or misapplication of the law by 963 boards of excise; or 2,892 different officials, with infinite variance in opinions and prejudices, to befriend or oppose it. Add to these the 964 attorneys and an equal number of clerks for the boards and the various other officials in cities, the most of whom had opinions and prejudices which they gratified to a greater or less extent in the administration of the law, and it will readily be understood why such diversity of practice existed in the execution and non-execution of the law. The uncertainty and irregularity of control and treatment of the traffic have led to much personal bitterness and local strife, and, in many localities, have so demoralized public sentiment upon this question that all excise laws are treated with indifference and contempt.

Uniformity in the law and in its construction, application and enforcement throughout the State, will very soon command for it a degree of respect and obedience which could never be obtained while the traffic was controlled by local influences and surroundings and by personal opinions and prejudices.

It is well known that the United States Internal Revenue Law, as to the sale of liquors, is rarely violated or evaded even by the most unprincipled, for the reason that the well-settled law and its thorough and impartial enforcement insure swift and sure punishment. So it is hoped and believed that the State Excise Law, if aided and upheld by public sentiment, and the Department fairly

sustained by the co-operation of public officials, courts and juries, upon whom its execution principally depends, will soon be equally respected by law-abiding dealers, and feared by lawbreakers. It is not my purpose to discuss the merits of the act or the various developments of public sentiment leading to its passage. It is now the law and its success or failure will depend upon its inherent strength or weakness and the support it receives from the public and those charged with its execution. As it is to be judged by the results produced, it is my duty to fully and fairly set forth the same so far as already obtained.

As will be seen by my detailed report, the amount of money collected from the traffic is very largely in excess of that paid under the old law, while the per cent. of expense of collection is largely diminished. In making this comparison, the amount to be paid for the Special Agent service of this Department can not consistently be wholly charged to the legitimate expense of collection, since, without the Agents, the Department accomplishes the same work as former boards of excise, who seldom or never acted in the capacity of detectives or prosecutors of violations of the law, but contented themselves with issuing licenses and permitting the law to be enforced by the efforts of private citizens, who had the moral courage to complain of violations, and by the police and other executive officers whose duty required that service; whereas the Special Agents, in addition to other duties, are required to assist local officials in the general enforcement of the law a burden and expense formerly borne wholly by localities.

Although the main features and approved provisions of existing excise laws were largely retained in the new Liquor Tax Law and only the additions which public policy seemed to demand were made, yet the mode of its execution was an entire departure from es

tablished usage, and, therefore, the Department was entirely devoid of all forms, decisions and precedents for the conduct of its business.

Confronted with this condition of affairs, the organization of the Department necessarily became a laborious and anxious task, requiring the immediate assistance of a large force of experienced clerks and counsel of ability and knowledge of both law and public affairs. In addition, the situation was made doubly embarrassing, as but one month was allowed for the vast amount of work required for the inauguration of the new system, and not one of the sixty or more clerks and assistants immediately required could legally be employed without vexatious delays, as the Civil Service laws and rules seemed to have no provision for an emergency of this kind. It was also found that neither the Civil Service rules nor lists were adapted to meet the emergency of supplying a new department with a large number of clerks at once; the rules as to certification, notice and acceptance or declination being arranged to apply to but one applicant at a time who was allowed time to consider the offer of employment; besides the lists themselves were insufficient to supply some of the special classes of clerks and employes required.

Finding myself unable to secure sufficient employes of ability and experience by the regular requisition, and that the Department could not be organized within the time provided by law without resorting to other methods, with the consent and approval of the Civil Service Commission, I secured from other departments, by transfer, about fifty clerks, stenographers and other employes of various grades who were already in the service, for partial equip. ment of the office at Albany and the sub-offices in New York, Brooklyn and Buffalo. I was also greatly assisted by other State departments who kindly detailed me clerks and experienced assistants. In this connection, I desire to express my obligation for the efficient aid

thus courteously extended by the Comptroller, Secretary of State, Superintendent of Public Works, Superintendent of Public Instruction, Fisheries, Game and Forest Commission, Civil Service Commission and others who, recognizing the exigency of the situation, cheerfully gave me able assistance from their respective forces.

It is with especial pleasure that I acknowledge the obligation of this Department to Mr. William G. Shaible, of the Comptroller's office, and Mr. Robert H. Hunter, of the office of Superintendent of Public Works, both of whom, refusing all compensation, gave me the benefit of their extensive experience in public affairs, together with many days and nights of hard work when it was an open question whether the machinery for carrying out the law could be made ready for operation on the day specified in the bill.

HISTORY OF ORGANIZATION.

The work and operations of the Department being new, and the ground heretofore untraversed, it seems appropriate to give a complete history of its development, showing the various steps taken to conform to the act and equip the Department and its three special branches in the counties of New York, Kings and Erie, together with the fifty-seven county treasurers who were made auxiliaries in executing its duties.

The imperative need of extreme haste in executing this work not only compelled unceasing and exhausting labor of all employed therein, but necessarily augmented the outlay for printing and other incidental requirements of the Department. The earnest co-operation of the public printers in employing their forces overtime, especially contributed to complete the work in the given time.

During all this time the Department was hampered, and continues to be obstructed, by want of room and the necessary con

veniences for its labor, and also delayed and annoyed by the almost constant employment of mechanics and laborers at various kinds of work in the rooms which it temporarily occupies in the unfinished part of the Capitol.

The first requirement under the law was to prepare the proper blanks and secure from all the boards of excise throughout the State a full report as to all licenses in force on April 15th. This required the formulation, printing and placing in the hands of 963 boards of excise, in time to make their report on April 15th, the required blank forms for recording the names of 35,000 licensees, with location of business, kind of license, date of issue, date of expiration, amount paid for licenses, name and residence of sureties, and names of persons being prosecuted for violation of the excise laws. These blanks, numbering many thousands, were duly forwarded to the various boards April 9th and 10th. Nearly 100 different kinds of blanks, together with a score of different kinds of registers and blank books, were prepared and forwarded to county treasurers and sub-offices. The procuring of the tax-certificates in form and style provided by law was a most difficult task, as they came under the contract of the public printer, who was unavoidably delayed and only succeeded by extraordinary effort in getting them ready for delivery on the last of April.

ENUMERATION.

After formulating, printing and distributing the official papers, books and blanks required, and selecting, so far as possible, the force necessary to prepare the Department for active and efficient work, an unexpected difficulty was encountered in carrying out the provisions of section 11, as to the enumeration of cities and villages with reference to the assessment of the tax. By a thorough