The entire appropriation from the last general assembly may be expended in the erection of two cottages and appurtenances.

not include labor; that in the estimate made by the board, they assumed the then prices of skilled and unskilled labor would re- main substantially the same for some time to come; but they have increased during 1906 and 1907 in per cents, varying from 8i4o to 50%. Consequently the appropriation of $80,000 made by the legislature in 1905 has become insufficient by about $8,000, which latter amount is now needed to complete the buildings already under way. You state that the matter is of great im- portance to many people as the need of the two cottages is im- perative. The general assembly of 1899 created an emergency contin- gent fund to "meet accidents in any of the penal, benevolent or reformatory institutions of the state" (Acts 1899, p. 533). In 1901 the objects for which the fund might be expended were en- larged to include "accidents or other requirements in any of the penal, benevolent or reformatory institutions of the state," (Acts 1901, p. 394). This statute was re-enacted in 1903 (Acts 1903, p. 302). In 1905 and 1907 no limitation was placed upon the appro- priation; (see Acts 1905, p. 502; Acts 1907, p. 672).. The evident purpose of the legislature was to enlarge, not restrict, the purposes to which the find could be applied. One of these was formerly "to meet accidents and other requirements in any 0 -1 0 benevolent institution." Hence, under the ex- panded scope of the appropriation, it may still be used for such requirements of the benevolent institutions of 'the state as, in your discretion seem to necessitate the expenditure. I am therefore of the opinion that if, in your judgment, the needs of the institutions are so pressing, that to deny it the relief requested, would seriously cripple it in performing its public functions, to the grave inconvenience of the district in which it is located, you have the power to devote to its aid so much of the emergency contingent fund as, in your discretion, you regard as proper. INSANE, EASTERN INDIANA HOSPITAL FOR-USE OF SPECIFIC APPROPRIATION OF $60,000. July 13, 1907. Dr. S. E. Smith, Medical Superintendent, Eastern Indiana Hospi- tal for Insane, Richmond, Indiana: Dear Sir-Your favor of July 11th asks whether the manage- ment of the Eastern Hospital for the Insane are authorized to [16-19395] have contsructed two cottages, with connecting covered corridors, for use in connection witfi the hospital, and to defray the ex- penses of such construction out of the specific appropriation of $60,000 made by the last general assembly for "Two cottages and appurtenances." You state that at the time of your report to the legislature, submitted November 22, 1906, it was estimated that $60,000 would cover cost of erection and equipment; but that the lowest bid received for the construction of these buildings is in excess of the estimate made by the management. I am of the opinion that the entire appropriation may, under these circumstances, be expended in the erection of the cottages and corridors. These are clearly included within the terms of the appropriation; and in the absence of any express mention of equipment in the appropriating act, I consider that you would be justified in undertaking the construction as planned; leaving the matter of equipment to be provided for hereafter. BANKING LAWS-CERTAIN ACTS OF BUILDING AND LOAN ASSOCIATIONS. July 13, 1907. Hon. John C. Billheimer, Auditor of State: Dear Sir-In your communication of July 11th you ask: (1) "Is it not a violation of the banking laws of this state for building and loan associations to receive moneys on deposit, and to issue therefor certificates of deposit payable on demand or after notice?" (2) "Is it not in contravention of the banking laws of this state for building and loan associations to receive moneys from investors other than from the sale of stock of such associations ?" Replying to your first inquiry: I do not consider receiving of money deposits and issuance of certificates therefor to be in violation of the banking laws of this state. I find no section of the latter statutes which seems to forbid such action on the part of building and loan associations. However, I am of the opinion that this practice is ultra vires and therefore unauthorized by law. A certificate of depositt is in the nature of a promissory note (Gregg v. Union Bank, 87 Ind. 238, and cases cited, p. 239); and the transaction is tanta- mount to a loan of money from the depositor to the association. There A no express power granted by law to these corporations