all state laws relative to building and loan associations; must require every association doing business in the state to procure an annual license from him; must subject every association to a careful examination once a year; must report any case of insolvency to the attorney-general,1 who is required to proceed as he would in the case of an insolvent insurance company; must require every company to present to him once a year a detailed report as to its financial condition and business transactions during the year; and he must present to the governor each year a report showing the condition of every association under his jurisdiction and giving an account of the manner in which his office has been conducted.

144. The Commissioner of Corporations.2-The "blue sky" law of 1913, providing for a corporation department under a commissioner of corporations, was suspended by a referendum petition, the vote to be taken in November, 1914. Following are the provisions of this law: The commissioner is appointed by the governor to serve during his pleasure at a salary of $5000 a year. His office is in Sacramento and he is provided with necessary assistants. His jurisdiction extends over all corporations doing business in the state for profit, except those that are under the supervision of the railroad commission, the superintendent of banks, the insurance commissioner, the building and loan commissioner, or the federal government. It is his duty to prevent the corporations under his supervision from selling worthless shares of stock or other securities. No such corporation, whether organized in California or

1 The commissioner has power to take immediate control of the affairs of any association which he believes to be in an unsound condition. This safeguards the interests of members while the attorney-general is effecting an adjustment in the courts. 2 Statutes of 1913, chapter 353.

not, may offer or advertise any of its securities for sale in the state until it has obtained a license from the commissioner of corporations. Before issuing any such license it is his duty to inquire into the condition, the aims, and purposes of the corporation. He has full power to examine its books and accounts. It is also his duty to supervise all general investment brokers in the state who sell the securities of various corporations. All such brokers must annually obtain licenses from him.

The commissioner collects certain fees for issuing these licenses to corporations and brokers and the money thus obtained is placed in the treasury as a special fund to meet the expenses of the department.

145. The Department of Engineering. This department is under the control of an advisory board of seven members, consisting of the governor, the state engineer, the general superintendent of state hospitals, the chairman of the state board of harbor commissioners of San Francisco, and three other members appointed by the governor. The three appointed members serve during the governor's pleasure, at a salary of $3600 a year each. The governor is the chairman of the advisory board and the state engineer is its executive officer. The latter is appointed by the governor to serve during his pleasure, at a salary of $5000 a year. His office is located in the capitol. The advisory board must meet at least once in two months and may meet oftener if necessary.

The department requires the assistance of many engineers, architects, draftsmen, clerks, stenographers, and other employees. The most important of these are the state highway engineer, appointed by the governor, at a salary

1 Statutes of 1907, page 215; Statutes of 1911, page 824.

of $10,000 a year; and a state architect, appointed by the state engineer, at a salary of $4800 a year. The governor also appoints a state consulting board of five persons, who serve without pay, and whose duty is to consult with the department of engineering "upon all matters that affect irrigation, drainage, and river improvement."

The most important duties of the department are as follows:

1. To have general control of all construction work for the state. Construction work may be done by contract or by day's labor, according to the decision of the advisory board. If done by day's labor, the work is in the immediate charge of the department, except work on the water front of San Francisco.1 If done by contract, it is under the immediate control of the board or commission for whom the work is done, but plans, specifications, and bids must be approved by the state engineer, and no work must be accepted and paid for until examined and approved by him. He is, of course, assisted by the state architect and other members of the department.

2. To have charge of the improvement, construction, and upkeep of all state highways. Most roads in California are county roads under the jurisdiction of the various boards of county supervisors; but the state has built and maintains a few roads in mountainous districts, where

3

1 This is in charge of the harbor commissioners.

2 Construction work for the University of California does not come under the jurisdiction of the department, being left in complete charge of the board of regents.

The Lake Tahoe road in Eldorado county; the Sonora and Mono road in Tuolumne and Mono counties; the Mono Lake road in Mono county; the King River Canyon road in Fresno county; the Emigrant-Donner Lake road in Placer and Nevada counties; the Sierra State road in Sierra county, not completed; and the Trinity-Tehama-Shasta-Humboldt road, which when completed will connect the principal road systems of these counties.

department in conLocal superintendcharge of the dif

the expense of the work is too heavy to be borne by the counties in which they are located. The state highway engineer is the executive officer of the structing and caring for these roads. ents, appointed by the governor, have ferent sections under the highway engineer's supervision. The state highway system is to be extended greatly by the expenditure of $18,000,000, for which state bonds were voted at the election of 1910.

3. To issue licenses to owners of automobiles and motorcycles, and to assign a definite number to every such vehicle. All owners must obtain such licenses, paying to the state treasurer the fees required by law. All chauffeurs must also obtain licenses from the department, paying the required fees to the treasurer.

4. To have charge of all work undertaken by the state to control flood waters and improve river channels.

Most of the work of this character so far done by the state has been along the Sacramento and San Joaquin rivers and their tributaries, but some work has been done along the Eel river in Humboldt county, and surveys have been made on the Russian river, and in and about Humboldt bay. The river work consists of dredging and levee building. The department has adopted the policy of coöperating with property owners in this work; that is, any item of work is paid for partly by the state and partly by owners of adjoining property. Since 1907 the legislature has appropriated $475,000 for such work.

The state also coöperates with the national government in this and other kinds of work. For example, the legislature of 1909 appropriated $400,000 to be used by the California Débris Commission 1 in dredging the mouth of the Sacramento river, provided the federal

1 This commission consists of three army engineers appointed by the national government to have charge of all river work undertaken by the government in California. The government is interested in keeping the rivers and harbors open for navigation.

government would furnish an equal sum for the same purpose.

Congress has made the necessary appropriation and the work is under way. All plans for such work must be approved by the engineering department. The legislature of 1909 also provided that the engineering department may contract with the proper departments of the national government to the extent of $30,000 each year to carry on topographic surveys and investigations into matters pertaining to the water resources of the state . . . and the use and distribution of water for agricultural purposes." Such contracts have so far been made with the director of the geological survey and with the agricultural department, whereby the federal government and the state furnish equal sums for making surveys and carrying on investigations.

5. At least thirty days before each regular session of the legislature the state engineer must present to the governor a detailed report of the work of the department.

146. Harbor Commissioners.1 The state owns the water fronts of three cities:- San Francisco, Eureka, and San Diego. A harbor commission, consisting of three members appointed by the governor, with the consent of the senate, is provided for each of these cities.

The members of the commissions for San Diego and Eureka serve each for four years; those for San Francisco serve during the pleasure of the governor. The commissioners for San Diego receive $300 a year each; those for Eureka, $400; and those for San Francisco, $3000, except the president of the board, who receives $3600.

The duty of each commission is to have charge of the state property on the water front. Prior to 1910 the state took no steps to improve the water front of either San Diego or Eureka; but state bonds amounting to $1,500,000 were voted in November of that year to build a sea wall, wharves, piers, docks, etc., at San Diego. These im

1 Commissioners of San Francisco, Political Code, § 2520 seq. Commissioners of Eureka, Political Code, § 2567 seq. Commissioners of San Diego, Political Code, § 2575 seq.

2 In every other city situated on the coast, the water front is owned either by the city, by private corporations, or by individuals.