STATE AGRICULTURAL SOCIETY. 23 



During the past eight years this item has been of no small amount, 

 there having been expended on this account, exclusive of special appropri- 

 ations by State and city for the construction of the exhibition building, 

 nearly $100,000. It is our intention to make still further improvements 

 by the construction of new stabling at the Park as soon as circumstances 

 will permit. 



STATE APPROPRIATIONS. 



Contrary to the expectation of many, the State does not pay one dollar 

 expended by this Board, over and above the amount appropriated for the 

 aid of this society. Nor is it liable in any way for indebtedness incurred. 

 The receipts and disbursements amount each year to from $00,000 to 

 $75,000, whereas the amount appropriated by the State, as aid, amounts 

 to but $17,500, of which $2,500 is for the care and insurance of the exhibi- 

 tion building, leaving $15,000, which amount is devoted to the payment 

 of premiums (exclusive of racing). Thus the State money is returned to 

 the producers, after doing valuable service. We call your attention to 

 these facts, to show that whatever money is received from the State is 

 expended in a maimer that should meet the approval of all. At least, we 

 are perfectly satisfied to have comparisons drawn between this and other 

 institutions aided by the State, in the expenditure of State funds. 



EXPERTS' REPORT. 



The Board of Directors has caused the books and accounts to be thor- 

 oughly examined and experted during the incumbency of the present 

 Secretary. The experts selected for this work were Mr. A. W. Bell, of.the 

 First National Bank of Stockton, and J. M. La Rue, Esq., Secretary of the 

 San Joaquin Valley Agricultural Association, both of whom are expert 

 accountants of many years' experience. After several weeks of continued 

 labor these gentlemen submitted the following report: 



Hon. L. U. Shippee, President State Agricultural Society: 



Sir: The undersigned, having been requested by you to fully and care- 

 fully examine the books and accounts of the Secretary of the State Agri- 

 cultural Society, beg to submit the following report: 



Our work began with the fiscal year commencing February 1, 1881, and 

 our study and examination of the books, accounts, and all financial trans- 

 actions of the society extended from that date up to and including Decem- 

 ber 31, 1887. 



We had full access to all the books and accounts of the society, and to 

 any and all memoranda desired or asked for, and we believe made a 

 complete and thorough examination. 



The source of the receipts of the society was a matter that received our 

 closest attention, and it was found that everything was accounted for, with 

 the exception of $3,037 75 on September 16, 1882, which was erroneously 

 entered as $3,037 35. 



All disbursements are represented by correct vouchers produced by the 

 Secretary, and thoroughly examined by us, but we found that voucher 

 No. 156 of 1883 showed the following amount as having been paid: $17 26, 

 which was charged up as $13 56, leaving a balance in favor of the Secre- 

 tary of $3 70. 



The system of keeping the accounts adopted in August, 1881, and pur- 

 sued to date of the termination our work, is as nearly complete as may be, 



