The practice of contracting debts, without being careful to retain exact accounts of them, has heretofore created much trouble.

Mr. Rowell's accounts with the prison, have finally been adjusted and paid off, as have also those of the succeeding agent, Mr. Smith; and it is hoped that, by the aid and attention of the Board of Inspectors, as well as a more rigid observance of well considered regulations, the difficulties which have occasioned so much perplexity and inconvenience for some years past, may hereafter be avoided.

The appropriation of $14,000, in section 1 of chapter 431, of the past year, has been found insufficient to pay off the indebtedness created prior to 1st October, 1850; several demands having been presented for payment since that appropriation has been exhausted. A further appropriation will be necessary to complete the payments of these former debts.

AUCTION DUTIES.

These duties constitute a very valuable portion of our State revenue, having amounted for the past year to $102,567.02.

The attention given last year by Mr. Kirkpatrick, the agent sent by the Comptroller to the city of New-York, is believed to have been followed by good effects, and with certain amendments to chap. 399 of the act of 1849, which could better be explained by Mr. K. than perhaps in any other manner, the Comptroller is of opinion that the occasional visitations in that city of a faithful and discreet agent, would be effectual in breaking up a series of paltry peculations, as annoying to regular and honest auctioneers, as they are detrimental to the revenues of the State, and injurious to the character of its legislation.

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The annexed statement marked R. will show the several sums received for duties the past year. The agent above mentioned, Mr. Kirkpatrick, of this city, is now in New-York making examinations on this subject, under the provisions of the act above cited.

Several auctioneers, entertaining the opinion that the constitution does not sanction laws imposing duties on their sales, accom

pany their remittances of the duty with a protest to the Treasurer and Comptroller, against the legality of the requirement. The money has, however, been placed in the Treasury.

TAX SALES.

The last tax sale was closed the 16th of December, 1848, and the time for redemption of lands then sold, terminated on the 16th of December, 1850.

A large amount of land was disposed of at that sale for the taxes of 1840 to 1844 inclusive; and towards the close of the term allowed for redemption, the applications for that and other purposes became so numerous, that for several days, the most that could be done by the tax clerks was to note them, and deposite with the Treasurer the various sums of money left for payment of taxes and for redemptions, with such memoranda as would insure their appropriate destination.

It demanded constant and careful attention for weeks and months to make the needful entries consequent upon this transaction; and yet, other weeks and months so to post and condense these entries, as to give the greatest security and facility to future operations.

The attention of the Legislature has been heretofore invited to the effect of these tax sales upon the Treasury. Taxes assessed upon non-resident lands, and returned unpaid, unless rejected for some irregularity, are paid over to the counties, the State advancing these taxes to the counties and assuming their collection.

This is unquestionably right, and generally its result is favorable to all parties. But when the quantity of these lands is great, and they are extravagantly assessed, the effect is injurious, not only to the owner of the land, but to the interest of the State. That they are thus assessed is shown by the abandonment of these lands in many instances by their owners, in preference to paying the taxes upon them. Lands, at the sales of 1848, were received by the State in lieu of the taxes due upon them, to an amount over $30,000, a large proportion of which are of the description referred to.

These lands are rarely resold by the State at cost; and the loss, in principal and interest, becomes a serious item.

If the recommendation in the Comptroller's report of 30th December, 1848, page 79, that these lands should be struck off to the towns in which they lie, and that the towns be debited by the Comptroller with the taxes and charges, to be reassessed upon the same towns, it would check the excessive valuation, which is the root of this evil, and it is not perceived that injustice would be done to any party.

The annual sales directed by the act of 1850 to be made in the counties, will prevent an accumulation of taxes; but whether it will modify the extravagance of assessment, remains to be seen.

Connected with the subject of tax sales, is that of tax titles. The policy of the government is, or should be, that the purchaser pay a reasonable sum for the land he buys at a tax sale. Whatever goes to diminish or discourage fair competition, should be remedied. A title of doubtful value or validity does this. This uncertainty of title gives the whole matter of tax sales a hazardous and speculative character, and leads almost necessarily to disputes and litigation.

Another sale, at the capital, for taxes of 1845 to 1848 inclusive, is desirable before the act of 1850 for county sales becomes operative in this respect. Measures have been put in train at the Comptroller's office, preparatory to the sale, and as much labor bestowed upon them as the other current business of the office will permit; liable, however, as those engaged in it unavoidably are to interruptions in ordinary office hours, it is on extra services in the evening that dependence must mainly be placed for the performance of this labor.

It is hoped the sale can be prepared for, previous to the close of the current fiscal year.

FIRE AND MARINE INSURANCE COMPANIES.

Since the act of 1849 these companies have multiplied with considerable rapidity. There have been twenty new ones established during the last fiscal year,

These companies have all submitted their articles of association to the Attorney-General, and procured his certificate that their respective charters were not inconsistent with the constitution and laws of the State; have obtained the appointment of three as judicious and discreet men as the Comptroller could select after careful consideration and inquiry, as examiners and appraisers of their capital stock, whether cash paid in, or secured to be paid in, or premium notes.

The reports of these examiners, have, in all cases, been made in due form, and to all appearance, such as justified the issuing of a certificate that the law had been complied with, and the companies were entitled to proceed in the business of insurance. After all the precautions pointed out in the law of 1849, suspicions rest on many minds that some of these companies, either from misrepresentations in regard to their capital-this being sometimes thought to have been borrowed for the occasion-or from secret understandings with the makers of large premium notes, that these notes should be exonerated from assessments, in case of losses, or from other causes, will not prove so firm and responsible as to be safe guarantors against the disasters they profess to relieve. Most of them have made the reports required by law.

It is not an easy matter to determine the degree of confidence an Insurance Company may rightfully claim. The Comptroller's certificate of which considerable use is sometimes made in gaining the confidence of inquirers and the public, amounts to nothing more than a declaration that, apparently, the company has commenced operations according to law.

These remarks are by no means made to excite suspicion; but to prevent undue importance being attached to the filing of the charter in the office of the Secretary of State, the endorsed opinion of the Attorney-General, and the certificate of the Comptroller-all relating rather to the forms of proceeding, than to the substantial power and strength of the company.

That our insurance companies are generally conducted with uprightness and prudence, there is much reason to believe; but the act of 1849, under which most of them are organized, is sadly defective.

There would be a propriety in authorizing the Comptroller to withhold certificates to agents of foreign companies, until satisfied that dues to the town or village fire companies had been paid. These payments are oftentimes neglected.

The revenues from marine insurance is this year $479.47 only. No charge is made for the labor of this office connected with fire and marine insurance. A large share of the service of one clerk and a considerable expenditure for blanks, &c., are bestowed upon these companies gratuitously.

Statement marked L. will show the number and location of the companies existing in the State prior to the 1st October, 1850, the number organized during the last year, and the agencies of foreign companies.

LIFE INSURANCE COMPANIES.

This is a business of a more serious character, as it is necessarily of longer duration than insurnace against fire and marine disasters, and fortunately it is reduced to almost the certainty of mathematical demonstration. These demonstrations, however, being only attained by great labor and mathematical skill, are seldom attempted by those most immediately interested, the assured. Hence the propriety of reasonable legislative provisions for compelling those who undertake the business of insurance on lives, to conduct their affairs on such tried and safe principles as will enable them, with certainty, to fulfil engagements to be consummated, perhaps, at a distant future day.