ATTORNEY GENERAL'S DEPARTMENT.

The Attorney General

is the law officer of the Commonwealth and part of the Executive Department of the State Government. He is appointed by the Governor at his pleasure. by and with the advice and consent of the Senate. He is a member of the Board of Pardons, Board of Public Accounts, Board of Property, Council of Education, and of the Board which passes upon the Necessity of the Construction or Operation of Elevated or Underground Railways. He is the legal advisor of the Governor, the heads of the various departments and of the various State boards, the officers and trustees of State institutions and other State officials; ex officio General Counsel of the Public Service Commission, the Bureau of Workmen's Compensation of the Department of Labor and Industry, and of the Insurance Board, and General Counsel of the Lake Erie and Ohio River Canal Board of Pennsylvania.

He furnishes in writing formal opinions on questions arising in the administration of the State Government, which are published biennially in a report to the Legislature, and in the leading legal periodicals of the State. The Attorney-General does not furnish legal advice except to those officially connected with the State Government and upon matters arising in the administration thereof. By Act of 1915, P. L. 876, all legal business of every department, board or commission of the State Government has been placed under his supervision. He has the right of access at all times to the books and papers in the offices of the AuditorGeneral and State Treasurer, and, in his discretion may cause settlements to be made and the collection of moneys appearing to be due thereby. In conjunction with the Auditor-General and State Treasurer, forming what is commonly known as the Board of Public Accounts, he revises and resettles accounts for taxes and any other debts due the State, whether from corporations, city and county officers, or individuals. Upon formal request of the Insurance Commissioner or the Commissioner of Banking, it becomes his duty to institute proceedings against insolvent and illegally conducted insurance companies, trust companies, banks and banking companies, building and loan associations, foreign mutual savings fund associations, for the appointment of receivers to wind up their affairs and for dissolution. The charters of incorporation of banks of deposit, savings banks, trust companies and insurance companies and the amendments or renewals of such charters, are subject to his approval.

While he has power generally to act for the Commonwealth in all litigation to which it may be a party, he is not officially concerned in any criminal action, except, that he may, when the occasion requires, supersede the District Attorney and take charge of any criminal prosecution, and by Act of 1906, P. L. 81, he is required to institute criminal proceedings on certified decision of the court as to election expenses of candidates for office. He prosecutes writs of quo warranto and other extraordinary legal remedies in the name of the Commonwealth.

He represents the Commonwealth in certain cases where property has been disposed of by will for religious, charitable, literary or scientific uses. He is also required to institute proceedings under the Act of 1891, P. L. 256, against socalled company stores and to enforce the provisions of the Act of 1889, P. L. 94, against railroad companies about to violate the provisions of Section 7, Article XVI of the State Constitution. Upon request of the President Judge of a district he is required by Act of 1905, P. L. 351, to employ an attorney to represent the Commonwealth in criminal proceedings, which attorney, when so directed, may supersede the District Attorney. In addition to the collection of taxes and claims due the Commonwealth, he is required by Act of 1915, P. L. 661, to collect moneys due the Commonwealth for the maintenance of insane and other inmates of State institutions alleged to be indigent, but who have property or estate. He collects liens of appropriations made to institutions not wholly managed by the State.

He

proceeds against foreign associations, who engage in business in this State without a license; against delinquent county or city officers or their sureties, for amounts due the State; against all corporations which have constructed or may construct railroad or telegraph lines without authority of law. He is authorized to satisfy of record mortgages given to or for the use of the Commonwealth upon payment of the same, with costs. He approves contracts for the improvement of roads by State aid, agreements made by counties and townships with the Commonwealth as to the improvement of State-aid highways, and contracts for the new Western Penitentiary. He acts with the Commissioner of Health in approving permits for the discharge of sewage, and assists in the enforcement of the law relating to vital statistics. He acts for the Board of Public Grounds and Buildings in all proceedings relating to the rebuilding of bridges by the Commonwealth where such bridges have been destroyed by flood, and acts for the Commonwealth in equity proceedings to perpetuate evidence to the title of lands. He approves rules and regulations governing Insane Asylums and of all State officers and employes who disburse public moneys, as well as bonds accompanying proposals on public contracts. He proceeds against sureties on the bonds of the contractors who furnish State supplies which do not come up to the standard and brings suit against defaulting contractors or their bondsmen to recover loss sustained by the Commonwealth by reletting contracts for stationery and supplies. He acts with the Auditor-General under Act of 1915, P. L. 878, with reference to the escheat of deposits of money or property. He is authorized to purchase at judicial sale real estate of Normal Schools on which the State has a mortgage lien and aids in the distribution of appropriations among such schools. He enforces certain Constitutional provisions against railroad, canal or other transportation companies. He collects amounts due the Commonwealth for purchase money, interest and fees on unpatented lands. He is required to make a biennial report of official business to the Legislature.

Rule of Practice of the Department.

The practice of the Department upon applications for writs of quo warranto, mandamus, or other extraordinary legal process is as follows:

Upon receipt of the complaint or petition requesting the Attorney General to institute such proceeding, a day certain is fixed for hearing and the Department is usually named as the place. Notice of the application and the time and place of hearing, together with a copy of the petition, or complaint, is required to be served by the petitioner upon the respondent, at least ten days before the time of hearing, unless otherwise directed. On or before the day of hearing the respondent must file a formal answer. Petitioner and respondent must file, with the petition and answer, a memorandum of the legal authorities relied upon. At the hearing the parties may appear in person or by counsel. The Attorney General, having no power to administer Gaths, the facts are shown by affidavits, although oral statements are sometimes received. If a prima facie case is made out, the Attorney General allows or grants the application; otherwise it is refused. If the prayer of the petition is granted, he generally files his suggestion or bill in the Court of Common Pleas of Dauphin County, which Court, under the Act of 1870, (P. L. 57), is endowed with special jurisdiction to hear and determine all cases and proceedings in which the Commonwealth is a party. While the general practice is to institute proceedings of this character in said Court, they may at the relation of the Attorney General, and, with his approval, be commenced in another county.

Practice with Regard to Settlements for Taxes and other Claims.

These claims are usually certified to the Attorney General by the Auditor General after a settlement made by that official and the State Treasurer. If the debtor, whether corporation or individual, after the receipt of a copy of the settlement from the Auditor General, neglects to appeal therefrom within the prescribed period to the Court of Common Pleas of Dauphin County, the Auditor General certifies said settlement to the Attorney General for collection, and thereupon suit is brought in the Dauphin County Court. The writ and a copy of statement including copy of settlement or account are forwarded for service to the sheriff of the county in which the office or residence of the debtor is located. Judgment may be taken upon the return day in default of an affidavit of defense, together with legal interest thereon from sixty days after the date of the notice of the Auditor General, and an Attorney General's commission of five per If an affidavit of d fense is filed, the case is included in a special trial list and tried at a special semi-annual session of the court. If, however, the debtor shall within sixty

centum.

days after settlement file with the Auditor General his formal appeal from the settlement, and, that official upon application made therefor, shall decline to resettle the account, the said appeal and specification of objection to the statement are filed in the office of the Prothonotary at Harrisburg and the case without further pleadings is then ready for trial. The Commonwealth by law has preference in trial and hearing of causes involving collection of revenues claimed by the State.

The trial of suits of the Commonwealth for unpaid taxes, bonus and other claims, presents few peculiarities. The Dauphin County Court, as mentioned above, has special jurisdiction under the Act of 1870. Under the Act of 1874, (P. L. 109), tax cases, like other civil cases, may be tried without the intervention of a jury, by filing in the Prothonotary's office a stipulation to that effect, and nearly all the Commonwealth's cases are thus tried. Testimony on the trial is taken either orally, or by agreement an affidavit may be received in lieu of depositions-many cases are tried entirely by affidavits. As in other cases, either party has the right of appeal after exceptions are overruled from the opinion and finding of the Court and such appeals are argued before the Supreme Court for the Middle District at its annual session at Harrisburg. Cases in which Federal questions are involved may be further appealed to the United States Courts, but such appeals are infrequent.

AUDITOR-GENERAL'S DEPARTMENT.

The Auditor-General

is elected by the people, at the general election, every fourth year, and serves for four years from the first Tuesday of May next succeeding his election. He gives a bond to the Commonwealth in the sum of $5,000. He appoints a Revenue Deputy, a Disbursing Deputy and an Assistant Deputy who perform the duties prescribed by him. During the Auditor-General's absence, inability, or in case of vacancy, the Deputies perform the duties of the Auditor-General until a successor is duly qualified. The Deputies give a bond in the sum of $10,000. The duties of the Auditor-General are generally to examine and settle all accounts between the Commonwealth and any person, officer, department, association or corporation. He examines annually the condition of the State Treasury, and is required to publish in six newspapers through the State the monthly statement of the State Treasurer showing the condition of the funds remaining in the State Treasury.

The Auditor-General's powers in relation to accounts coming before him are very broad. He can compel the attendance of all persons having accounts to settle, and of such witnesses as he deems proper, and examine them under oath, and compel the production of all books, papers and documents relating to any account before him, in order to do which he can exercise the power of attachment and imprisonment through the sheriffs and coroners of the several counties. He can procure the testimony of all such persons before any judge or justice of the peace on a commission under his hand and seal. He can commit to prison any witness who refuses to testify or to produce any books, papers or documents when required.

He may, by himself, or in connection with the State Treasurer, send an agent to examine the books, papers and accounts of any corporation, institution or company having accounts to settle with the Auditor-General's office refusing or neglecting to make returns within the time specified by law.

In settling the accounts of the Legislature and the several departments for incidental expenses he can disallow any excess over fair prices.

When it may, in any manner appear that an account has been erroneously or illegally settled, and one year having elapsed from the date of such settlement the Auditor-General, State Treasurer and Attorney-General may revise and resettle the same according to law.

Within thirty days after the settlement of any account on which a balance appears to be due the Commonwealth, the Auditor-General shall send a copy thereof to the person or persons indebted, from which they may appeal to the court of common pleas of Dauphin County, within sixty days after notice of settlement.

All State taxes, unpaid bonus, interest, penalties, and all public accounts settled against any corporation, company, association, joint-stock association, or limited partnership, by the Act of June 15, 1911, P. L. 955, are made a lien upon the franchise and property, both real and personal, of such corporation, from date of settlement by the Auditor-General and approval by the State Treasurer. In the event of the sale of the property of any such corporation, at a judicial sale, all taxes, interest and bonus, shall first be allowed and paid out of the proceeds of such sale, before any judgment, mortgage or any other claim or lien. Such taxes bear interest at the rate of twelve per cent. per annum from sixty days after the date of settlement.

After accounts are examined and settled they are submitted, with all the papers, to the State Treasurer for examination and approval. If the latter disapproves of any account he must state his reasons in writing; and if, on due consideration, they still disagree, the reasons in writing of both must be submitted, with all papers relating thereto, to the Governor for final decision.

When accounts are approved by the State Treasurer they are returned to the Auditor-General's office, a certified copy of each one is made and forwarded to the proper party, a record of the settlement is kept, and the originals are properly indorsed, numbered and filed away.

All debts known by the Auditor-General and State Treasurer to be due the State, from all sources, remaining unpaid for ten days after the time allowed for appeals shall have expired, must be placed by them in the hands of the AttorneyGeneral for collection.

Certified copies of all accounts, books and documents on file in the AuditorGeneral's office, under hand and seal, shall be admitted in evidence in any court of law elsewhere in the Commonwealth.

The fiscal year closes on November 30th, and immediately thereafter he makes a report for publication, exhibiting, in the abstract, a statement of the Finances of the Commonwealth.

Wherever the laws recognize a claim on the Commonwealth, and there is no money appropriated to pay it, such account must be settled as other accounts. and the Auditor-General at once reports to the Legislature, if in session; but if not in session, then during the first week of the ensuing session. He may issue a new certificate of debt in lieu of any one lost or destroyed on satisfactory proof of its loss or destruction.

He possesses all the powers and performs all the duties of Escheator-General, and, upon proper information given, appoints Escheators where required. He is also a member of the State Military Board, Board of Public Accounts, Board of Sinking Fund Commissioners, Board of Revenue Commissioners, and is one of the Commissioners of Public Grounds and Buildings, the Emergency Public Works Commission, the Commission on Public Welfare, and other Special Commissioners or Boards where the money of the State is expended.

In case of the failure of the Court of Common Pleas of any county to appoint an auditor of county accounts at the last term preceding the first day of January of each year, it is the duty of the Auditor-General to fill such vacancy.

The Act approved July 15, 1897, P. L. 291, authorizes him to prescribe the form of vouchers, monthly and quarterly returns and statements of county officers and institutions receiving State aid; to appoint, for temporary service, from time to time, expert accountants to examine the accounts of county officers and of institutions; and he is made the custodian of the title papers, insurance policies, plans of buildings and grounds, deeds and other legal evidences of ownership of all the institutions owned exclusively by the State.

The Act approved June 2, 1915, P. L. 730, authorizes him to prescribe the form of report to be made by corporations for the purposes of taxation, fixes the calendar

year as the tax year, and clearly prescribes in what manner the officers of the corporation shall arrive at the valuation of the capital stock; but provides that the Auditor-General and State Treasurer, in fixing their valuation, shall make the same upon the basis of the report, or upon "any information within their possession, or that shall come into their possession," with the right to the company dissatisfied with any settlement to appeal therefrom in the manner provided by law. Where no report is filed on or before the last day of March it is the duty of the AuditorGeneral and State Treasurer to estimate a valuation of the capital stock and make settlement, from which there is no right of appeal.

The Act of April 9, 1913, P. L. 48, provides that on an appeal no facts shall be admitted in evidence that were not brought to the attention of the said fiscal officers in a report filed or an application under oath for resettlement prior to said appeal, unless the court shall be satisfied that the appellant was unable by the exercise of reasonable diligence, to have laid such evidence before the fiscal officers. In counties having less than one million inhabitants the Auditor-General is authorized to appoint a mercantile appraiser and to publish the lists of names and classification; in counties having more than one million and less than one and one-half millions of inhabitants (not cities of the first class), the Auditor-General is authorized to appoint five mercantile appraisers and necessary clerks, and in cities of the first class the Auditor-General and City Treasurer are authorized to appoint five mercantile appraisers.

Duties of the Auditor-General's Department.

The duties of the Auditor-General's Department may be considered, for the sake of convenience, under the following heads:

1.

2.

3.

4.

Settlements for taxes made directly with taxables.
Settlements with officers who collect taxes or fees.

Duties in connection with the payment of moneys variously appropriated.
Miscellaneous.

1. Settlements for Taxes, Made Directly against Taxables.

The Auditor-General, with the approval of the State Treasurer, makes settlements directly against taxables for the following taxes:

1. Tax on Capital Stock of Corporations, or on the interest in limited partnership or joint stock associations.

2. Tax on County, Municipal, School, Borough and Corporate loans.

3.

4.

Tax on Gross Receipts of Transportation, Transmission and Electric Light Companies.
Tax on the stock of banks and trust companies.

5. Tax on the gross premiums of domestic insurance companies with capital stock.

6. Tax on the net earnings or income of brokers, private bankers and unincorporated banks and savings institutions.

7. Tax on the matured shares of building and loan associations.

8. Tax on the gross receipts of notaries public in Philadelphia County.

10. The Act of June 4, 1915, P. L. 828, provides that the Auditor-General shall prescribe the form and furnish and sell in such places and at such times as he may deem necessary, the stamps to be attached to any stock sold, or evidence of the sale or agreement to sell any stock, or bill or memorandum thereof.

The Auditor-General "makes settlements," or, in other words, assesses all of these taxes on the basis of sworn reports required to be made by the taxables, or upon any information in his possession. All corporations or persons subject to any of these taxes are required to register in the Auditor-General's Department, giving, if corporations, the names thereof, amount of authorized capital, amount of paid-in capital, and the names and addresses of the president, stcretary and treasurer. These registries furnish the Auditor-General with the data necessary to enable him to send to the taxables the proper blanks upon which to make reports.

Capital stock and loans tax blanks are mailed during the month of December of each year. The reports are made up as of the last day of December, covering the preceding calendar year, and must be filed on or before the last day of February; but the Auditor-General may, for proper cause shown, extend the time to the last day of March, after which date he must make estimated settlement and add thereto a penalty of ten per cent. for failure to file the report as required by law.

Corporations, electing to file reports as of their fiscal year instead of the calendar year must first obtain the consent of the Auditor-General. The first report made after changing the time for filing from the calendar to the fiscal year shall cover the period from the last day of the