The Anderson intelligencer. (Anderson Court House, S.C.) 1860-1914, January 22, 1896, Supplement, Image 6
tm??Te the duty of the comptroller gen?
eral to levy the supplementary tax if
Deeded. It is "within your provinco to
{prescribe the number of months dur?
ing which the free schools shall remain
open, and in case the taxes heretofore
mentioned are insufficient to maintain
,themyou are required to levy such ad?
ditional tax upon the property of the
State as may be sufficient for such
jpurpose.
To provide a term of less than six
months would be a failure upon your
part to satisfy the great demand of our
people for better common schools.
Unless our youths are better prepared
in these foundation schools the. thirst
'for higher education will bo slaked,
and onr system of colleges will become
topheavy and fall of its own weight.
f All the net income to be derived by
the State from the sale or license for
Jthe sale of intoxicating liquors, all
gifts to the State where the purpose is
Sot designated, all escheated property,
le net assets or funds of all estates or
copartnerships in the hands of the
courts of the State where there have
been no claimants for the same within
jthe last 70 years, and the direct tax
fund, are set apart as a permanent
school fund, to be eecurely invested,
and the annual income shall be appor?
tioned by the general assembly for the
jpurpose of maintaining the public
'schools. This sum will be a large one,
and it will be necessary'for you to pre?
scribe the manner in which and by
jwhom it is to be invested, as the Con?
stitution leaves this doubtful.
'. It is made the duty of the general
assembly to provide for the division of
jthe counties into suitable school dis?
tricts, ob compact in form as practica?
ble, having regard to natural boundtv
pries, and not to exceed 49 nor he lets
4han 9square miles in area, etc. It is
{impossible for your body to do more
than leave this matter in the hands of
jthe county, boards of examiners and
lother. county school Authorities, en
'(: joining upon them the execution of
4 ,;Jihis provision.
fe&NAIi AND CHAIQTABLE INSTITUTIONS.
The name of the lunatic asylum has
foeen changed to the State Hospital for
(the Insane.
/" It is made the duty of your honora?
ble body at your first session after the
adoption of the Constitution to pro?
jvide such proper and liberal legisla?
tion as will guarantee and secure an
ennual pension to every indigent or
idisabled Confederate soldier and sailor
of this State and of the late Confeder?
ate St ateB who are citizens of. this State
and oIbo to the indigent widows ,f
Confederate soldiers and sailors,
j 1 feel that it is absolutely unneces?
sary for me to say one word in refer?
ence to this matter to enable yon to
realize your duty. Most of you are
Confederate veterans, and those who
are not are sons of Confederate sol?
diers. Ii there is one thing dear to
the hearts of South Carolin a, it is the
memory of the lost cause. A . State
that exhausted her all to maitaxn it
?cannot be ungrateful in her hour of
prosperity to the indigent and disabled
Veteran who stands as a living monu?
ment of the principles which must fin
glly prevail to perpetuate this repnb*
c. Let your appropriation be, as'
(the Constitution directs, proper and
liberal.
Having thus gone over in a cursory
manner the various articles of the
Constitution, it will he seen that the
legislation required of you at this ses?
sion of your honorable body may he
?classified as follows:
. 1. An act to regulate the right of
suffrage and for regulation of elec?
tions.
? 2. An act defining and protecting the
homestead for heads of families and
kor persons not heads of families. '
' 3. An act to provide for the incor?
poration of cities and towns and for
changing, amending or altering the
- {charters thereof.
! 4. An act to provide for the incorpo
jration of railroad, telegraph and other
transporting and transmitting compa?
res.
t 5. An act to provide for the incorpo
liion of banking institutions.
: 6. An act to provide for more speedy
^administration of justice f county courts
or increase of circuit judges) and for
jthe interchange of circuits* among cir
j? cnit judges aed for change of venue.
: 7. An act to provide for the appoint?
ment or election of a commissioner to
?codafy the laws and define his duties,
j 8. An act regulating- the formation
of now counties.
I 9. An act to provide a uniform as?
sessment of property for taxation.
' 10. An act to provide the manner in
jwhich claims against the State may bo
rtablished and adjusted.
There are other matters not so nr
jgent that may well be continued until
four next regular session. v
It is my duty now, at the risk of try?
ing your patience, to give you a fash
Bight glance at the administration of
rehe government during the past year.
I would respectfully call your atten
ition to the reports of the various
{boards and heads of departments,
(Which yon will find full and complete,
land herewith transmitted to yon. 1
FINANCE AND TAXATION.
I Upon my induction into office the
deficit for the ordinary expenses for
jthe government was $50,000, in the
shape of a note of the governor and
treasurer hearing interest at the rate
of 7 per cent. This has been paid in
full as well as all other obligations, and
% am happy to inform your honorable
Sbody that there in the treasury suffi?
cient funds to pay the expenses of the
Constitutional convention without any
extra taxation npon tho people. An
appropriation of said amount, however,
(will have to be made by you, as this is
jthe only way in which it can be drawn
{from-the treasury.
J By reason of tho extension of the
|time for payment of taxes for the past
Ifiscal year under authority of your
honorable body, tho State treasurer
und governor burrowed ?100,000 with
iwhjch tQ njecfc the January 189 Gt Jn; ,
terest on tho public debt. I refused
to pay interest to the brinks npon this
amount or any amount borrowed by
me for the State purposes, for tho
reason that the State deposits all of her
funds in such banks and receives no
intorest thereon, and from a spirit of
reciprocity I deemed it just. I secur?
ed the money, I nm glad to say, with?
out any serious protest from the
[ banks, thus saving tho $2,121.69 in
i terest paid out for the previous year.
The following statement is given for
yonr information showing tho amount
of taxes received and disbursed, tho
amounts of dispensary profits paid
into the treasury, and the phosphate
royalty over and above $75,000 placed
in the sinking fund and applicable to
the general account. The profits from
tho dispensary up to the first of Janu?
ary, 1896, when the new Constitution
went into effect, will also be applica- ?
ble to the general account.
RECAPITULATION OP RKCEIPTS FOR YEAR
ENDING OCTOBER 31, 1895.
I Taxes...\..$ 845,708.54
Dispensary, credited dis?
pensary account. 802,233.01
Dispensary for appropria?
tion of act of December
I 1892, refunded general
'account.. 50,000.00
Phosphate royalty. 93,308.71
Privilege tax on fertilizers 30,135.93
Official fees.... ????. 13,917.81
Commissioners* sinking
fund. 1,300.00
Morxillfnnd. 21,000.00
Other special accounts... 3,162.39
Assessments for railroad
commissioners. 8,828.62
Interest on sinking fund
for the reduction of
brown 41-2 per cents.. 3,019. SO
Loans effected under acts
1893-94.......' 100,000.00
Prom other sources. 1,279,48
$1,971,892.29
Balance October 31,1804 203,256.24
$2,175,148.53
RECAPITULATION OF PAYMENTS FOR YEAR
ENDING 31?t OCTOBER, 1895.
Legislative expenses.$ 33,370
Educational institution &
expenses. 225,038 99
Charitable, penal and sani?
tary expenses. 130,511 60
I Interest on public debt and
expenses. 269,140 05
State dispenenry. 750,323 58
Salaries Supreme Court,
Circuit judges, solicitors.
State officers, county
auditors and supervisors,
public institutions, etc.. 143,8U6 00
I Public printing. 19,607 52
I Investments for sinking
fund for reduction of the
Brown 4 1-2 per cents.
under act 1892. 13,600 91
Pensions and special pen?
sioner . 51,109 70
Maintaining militia, 1893
94 and 1894-95. 20,000 00
1 Direct tax fund and inter?
est . 17,914 17
I Brown consols, due July,
1893, redeemed. 895 71
Eleotdon expenses. 18,549 73
Befund taxes and overpay?
ments refunded county
treasurers. 6,060 76
.Contingent funds and sta?
tionery and stamps, ex?
ecutive offices, Supreme
Court and other officers. 7,205- 62
[Constitutional convention
appropriation. 3,306 62
I Legal service in Coosaw
Co. case and others. 5,950 00
I Loans under act, 1893 and
1894 paid, with interest. 152,121 69
On other occounts.<.. 36,459 68
$1,902,952 5? !
I Balanoo 31st October,
1895. 272,196 01
$2,375,348 53
Statement of general account for
I November and December, 1895.
RECEIPTS.
On account of taxes.
November.... $55,379 02 *
December.... 196,113 02
-$251,492 04
On account of phosphate Royalty.
(November.$ 8*5233
December. 1,450 00
December,*.... 1,846 59
- $4,158 92
On account of Transfer from Dispen?
sary.
November. 50,000 00
On account Litigation Attorney Gen?
eral,
November (refund). 147 31
On account Constitutional Convention.
December (refund;. 103 90
Total receipts.$305,902 17
Cash balance Oct. 33, 1895 15,241 26
$321,143 43
Statement of general account for
November and December, 1895:
EXPENDITURES.
SALARIES.
November...$ 5,537 87
December... 683 40? $6,22127
COTINGENT FUND GOVERNOR.
November.. .$ 263 36
December... 412 68? (.75 84
WINTHROP COLLEGE.
.$ 1,550 00
November... 1.441 57
December... 3,441 57? 4,433 34
?"PUBLIC PRINTING.
November.. .$ 2,820 50
December... 4,480 74? 7.303 24
CONSTTJTIONAL CONVENTION.
November... 866 36
December... 26,197 28? 27,063 64
?'COUPONS AND STOCK INTEREST.
November... 90 00
December... 43,322 41? 43,412 41
Contingent fund State
house keeper, Novem?
ber. 3 80
Expenses phosphate com?
mission December... 65 54
Maintaining quarantine,
November. 400 00
Litigation attorney gen?
eral, November. 77 74
Repairs governor's man?
sion, November.' 8 44
Eepair State house, No?
vember. 2 60
Stationery and stampt
comptroller general,
November. 7 85
JLii^otujg State house
and grounds, Novem?
ber ........ 56 64
Books supreme court,
November. 59 05
Documentary history of
South Carolina, No?
vember. 33 80
Blanks, etc., county au?
ditors and treasurers,
December. 1,368 73
Total expenditures. S 91,170 73
General uccount cash
balance, Dec. 31, 1895 ?29.972 70
?321,143 43
?Pnbic printing ?1,911,13 only in?
cluded in October estimate of appro?
priation remaining unpaid.
**Coupons prior to 1896 $146.25
only, included iu October estimate of
appropriation remaining unpaid.
RECEIFT8 PHOTTHATE ROTAI/PT.
1894.
January.. $ 3,273 61
February. 1,008 94
March. 5,058 29
April. 1,950 00
May. 2,500 00
June. 31,864 84
July.... 6.009 50
August. 3,565 50
September. 11,454 53
Oetober. 3,390 52
November. 5,698 50
Decojiber. 7,524 57
1895.
January.:.$ 2,885 25
February. 11,17150
March... 12,120 50
April. 3,460 50
'Aav. 5,540 74
Juns. 5,240 00
Jaly. 14,107 00
August. 5,129 00
September. 9,066 05
October. 11,364 50
November. 3,127 33
December. 8.320 00
$63,898 30
'93,532 97
$155,431 27
From the foregoing it will be seen
that we commence the fiscal year with?
out a dollar of indebtedness. It will
be necessary for your honorable body
to provide sufficient revenues to rnn
the government for fourteen months
instead of twelve as heretofore. This
results from the change in the close of
the fiscal year from the 3lBt of Octo?
ber to the 31st of December under the
new Constitution. Two-twelfths of the
ordinary expenses of the State govern?
ment will have to be added, therefore,
to your levy for the next fiscal year in
order to make up the deficit at once
and remain on a cash basis, Under the
provisions of the new Constitution
evory dollar of outside revenue here?
tofore going into the State Treasury to
meet the ordinary expenses of the
government except in phosphate roy?
alty, which is now hardly sufficient to
pay the fixed charge of $75,000 to the
idnking fand, has been diverted to the
school fund. The dispensary profits,
the direct tax fund, escheated estates
and all gifts to the State where the pur?
pose is not designated go to this equal?
izing school fund. We are entirely
dependent upon a direct tax to raise
funds to meot the ordinary expenses of
tho government. I am satisfied, how?
ever, we will be able to meet all de?
mands with the same levy as for the
past year, with the exception, however,
of the two months additional. Had
the funds of last year been left appli?
cable to the ordinary expenses, the
levy for the next year would not have
exceeded three mills. The total tax?
able property of the State for the past
fiscal year is $169,448,941. This will
be greatly increased another year by
the large number of manufactories
now in process of erection, and it is to
be hoped by a more uniform system of
?assessment, necessary to be devised by
your honorable body aB required by
the Constitution/ Your present levy
will be upon the assessment of 1894-5
for State purposes, but this is not true
aB to ^county and schools. The funds
arising from taxes of 1894-5 for coun?
ty and school purposes were expended
on contracts made against them before
they were even collected. This condi?
tion is unfortunate for the creditors of
the counties, who are school teachers
and contractors, who are compelled to
disconnt their claims at exorbitant
rates. To meet the difficulties arising
from such a condition, I would respect?
fully suggest that all contracts due or
to become due, after expending the
revenues of the year 1894-5, from any
lawful cause prior to January 1,
1896, for county or school pur?
poses be declared past indebted?
ness and the County authorities be al?
lowed to issue bonds to liquidate the
same. The bonds could be made pay?
able, say in ten years, with provisions
for the retirement of a given number
each year. The Counties of the State
would thus be placed upon a cash basis
and teachers relieved of great hard?
ship. Much complaint has been made
by the Comptroller-General against
the present system of assessing the
property of corporations other than
railroad. I think the complaint well
founded, as justice and equity demand
uniformity in this particular. We
have in ono County the stock of a
bank that pays ten per cent, dividend
assessed at seventy-fivo cents on the
dollar. In an adjoining County a
bank that pays eight per cent, divi?
dends assessed at one hundred and
eight on tho dollar. I would respect?
fully suggest to your honorable body
that its Stete Board ofBailrond Assce
Bors be given jurisdiction over all
banking and manufacturing companies
in this respect. We would then have
one central authority, with no local in?
fluences that could bo brought to bear
upon it. The same difficulty exists ns
to the method of taxing insnrance com?
panies. I would respectfully recom?
mend that in lien of the present sye
tem of taxing net premiums received
in the various counties, -which is almost
impossible to get at, a fixed per cent,
of Buch gross premiums be required to
be paid direct into the State Treasury,
and, if necessary, the proportion ad?
justed between the several Counties.
Under the terms of the new Constitu?
tion tho General Assembly is authori?
zed to impose a graduated tax on in?
comes and on professions and business
occupations. It is hardly necessary
for me to argue to your honorable
body the justice of an income tax. It
has been advocated upon every stump
and throughout the entire Union as
the most equitable system of taxing
the rich in proportion to the poor. It
is impossible to devise a system that
will secure a just return of personal
property. It has been the dream of
legislators and statemen for years, and
we are no nearer a solution of the
problem today than we were a century
ago. I believe an income tax will
greatly assist in solving the problem.
The present time will be known to his?
tory as the great bond era in the histo?
ry of our country. As wealth becomes
centralized its power is brought to
bear, with all its corrupting influences,
to obtain nontaxablo securities. The
citizens of towns and cities and corpo?
rations require more protection from
government than the rural population,
and it is but proper that they should
bear a greater proportion of its bur?
dens. Under the law money invested
in State and United States bonds is
exempt from taxation. The stock of
banks and corporations is exempt in
proportion to the amount of their cap?
ital invested in State bonds. This was
intended to encourage the banks to as?
sist the State in refunding her debt,
and yet not one would come to the
escue at the critical moment and we
were forced to sell the bonds in for?
eign markets. Since that time, how?
ever, the banks and investors of the
State have purchased them, paying
large premiums for them, until now
almost the entire issue is owned in
Charleston and other cities of the
State.. This capital can only be reach?
ed by an income tax, and I respectful?
ly recommend to your honorable body
that a graduated tax be placed upon
all incomes of one thousand dollars
and upwards, and that County Audi?
tors bo given full authority to hear ev?
idence and resort to such other means
as to your honorable body may seem
expedient to obtain full and accurate
returns. It will be necessary for you
to provide for the payment of the sal?
ary of the various School Commission?
ers and other expenses for collecting
and disbursing school funds out of the
general taxes as the Constitution pro?
vides. It will be unnecessary for the
expenses of the State Penitentiary and
the Dispensary to be paid oat of the
general fund, ns both institutions are
self-supporting. I would, therefore,
recommend that in your appropria?
tions for these institutions you speci?
fically state that such amounts be paid
out of their earnings to be deposited
in the State Treasury forthat purpose.
CHARITABLE AND PENAL INSTITUTION'S.
It is always a pleasure to the Exe?
cutive to visit the State Hospital for
the Insane. This institution is managed
and conducted in a manner that must
satisfy the most hypercritical. While
the amount of the appropriation asked
for is apparently greater than that for
the preceding year, a study of its de?
tails will show that a reduction has
been made in the per capita main?
tenance from $123;37 last year to
$116.76 for the present year. You
will see from the recommendation of
the Board of Regents that an effort
was -made during the past year to pur?
chase the Wallace property, consisting
pf 108 acres of land, adjacent to the
Hospital. The price agreed upon was
$25,000, which the Regents expected
to pay out of the sui i appropriated for
the maintenance of the institution,
covering a period of eight years. I
could not concur in such an arrange?
ment, for the reason that I believed
it unwise to establish the precedent
whereby the Board of any State in?
stitution could increase the public debt
of the State to such an amount without
express authority from the General
Assembly. If the Board can purchase
sucn an amount of property upon no
other authority than their own, they
could to an unlimited amount involve
the State in debt. I deem it advisable
to purchase this property at the pres?
ent time for the reason that it will be
absolutely necessary to the needs of
the institution in future, and I am sat?
isfied to wait for that emergency would
entail upon the State a considerable
amount of increase in the value of the
property, which is within the city
limits. I have such great respect for
the judgment and ability of the Su?
perintendent and Treasurer of the in?
stitution as to unhesitatingly endorse
their recommendations. The urgent
necessity for a brick building for tho
confinement of the colored insane will.
I am sure, impress itself upon your
judgment. It is unjust, and, to bay
the least, inhumane, to confine these
unfortunates in a fire-trap or place of
torture, as "the present quarters now
seem to be. Tho brick have been
manufactured and everything is in
readiness for the builder. During the
past year a vacancy occurred in the
office of Second Assistant Physician,
caused by the resignation of Dr. W. A.
Kirby. It is a matter of congratulation
to the State and to the institution that
1 was so fortunate in securing the
services of Dr. Sarah Campbell Allen
to fill tho vacancy. Dr. Allen is a
Scuti Cnroliar. bj birti, and the able
I
mauner in which she performs tho
duticBofthe position and tho love borne
bcr by the female inmates proves the
?wisdom of placing a woman physician
ia charge of these unfortunate patients
of her own sex.
I commend to your careful consid?
eration the carefully prepared and in?
structive report of the Superintendent
of this institution.
DEAF AND BLIND ASYLUM.
This instituion continues to be ad?
mirably conducted, and with less com?
plaint than any institution under our
government. The remarkable record
as to the health of the students made
by the institution may be well consid?
ered by the management of other in?
stitutions in the State, the cost per
capita for medical attention, etc.,
being only 36 cents, not a single case
of serious illness having occurred dnr
ing the entire year. This is attributed
in a large measure to the kind atten?
tion and motherly care given by the
Matron of the institution. The Super?
intendent asks your honorable body
for the following appropriation:
For support.$17,500
For repairs. 1,000
For insurance. 874
For electric light plant and laundry
machine. 4,620
Euilding for colored pnplis. 8.000
As to the last two items, I am not
prepared to recommend their appro?
priation. The experience of other in?
stitutions in the State with electric
light plants has been rather a costly
one, and I see no necessity for such a
plant in this institution. The build?
ing for colored pupils may be allowed
to remain as it is until the the finances
of the State can afford a new one.
I would respectfully recommend the
granting of the other appropriations
asked for. It will be noted by your
honorable body that the Faculty of
the institution has been enlarged dur?
ing the year and tLe institution gener
ollv improved.
SINKING FUND.
Under the refunding act, $75,000
per annum of the receipts from phos?
phate royalty is required to be set
apart as a cumulative sinking fund.
I found cash on hand to the credit of
this account, from the last fiscal year,
$25,278.23 uninvested, and drawing no
interest. The governor, State treasu?
rer and attorney general were made a
committee for the purpose of investing
this fund. After trying the markets
of this State and the principal cities
outside of the State, it was found that
State bonds could not be purchased for
less than 108 and subsequently for 110.
This fund being cumulative, and the
commission having no authority to
cancel the bonds a? purchased, I deem
it unwise and inadvisable to purchase
securities whose price was higher than
par, as by so doing we would lose so
much of the sinking fund as was paid
out for premiums. I immediately ar?
ranged with the banks in which this fund
was deposited requiring them to pay
four per cent, interest from the time
the deposits were placed with them until
checked out by the committee. We
have since received from the phosphate
royalty during the fiscal vear just
closed $93,308.71. This is" in bank
subject to check of the commission and
drawing interest at the same rate. You
will readily see that this is a more
advantageous arrangement for the ac?
cumulation of the fund than its invest?
ment in bonds at a premium of 10 per
cent. Some legislation is necesavy in
order to enable the commission to
advantageously invest the fund. I
would therefore respectfully recom?
mend the following section of the
Constitution of the State of Georgia:
"Section 14, article VII. The
general assembly shall raise by tax?
ation each year, in addition to the sum
required to pay the public expenses
and interest on the public debt, the
sum of $100,000, which shall be held
as a sinking fund to pay off and retire
the bonds of the State which have not
yet matured, and shall be applied to
no other purpose whatever. If the
bonds cannot at any time be purchased
at or below par. rhun the sinking fund
herein provided for may be loaned by
the governor and treasurer of the
State; provided, the security which
shall be demanded for said loan shall
consist inly of the valid bonds of the
State, etc."
If this is made the law of our State,
I am satisfied we can readily obtain
from banks of the State 5^1 per cent,
interest upon loans secured by a deposit
with the State treasurer of the valid
bonds of the State; indeed, I have of?
fers already from the best bankers of
the State to that effect. This arrange?
ment is better for the State than the
ownership of the bonds, for the reason,
as-1 have ?bet?re stated, wo wonld be
compelled to pay a premium of 10 per
cent, and upwards for the purchase of
the bonds in open market with a loss
to the fund in proportion to the
amount of premium paid and the low
rate of interest received and the in?
ability of the State to retire the
bonds ander the law. Beside, as the
bonds mature, the price invariably
falls: and as the time for refunding
the debt draws near, our sinking fund
instead of showing an increase will
show a decrease.
I am satisfied the intention of the
general assembly in making this fund
cumulative was to secure its invest?
ment in such a manner as to retire at
the maturity of the bonds one-haif of
the State debt. This can easily be ac?
complished in the manner I have in?
dicated.
There seems to be some difference as
to the construction of the statute reg?
ulating delinquent taxes; as to when
the same become liable to be forfeited
to the sinking fund. I feel, however,
that it is more apparent than substan?
tial. There should be no conflict be?
tween these two departments of the
government, as it was intended that
they should be mutually helpful to
eatb. other. Tho law in reference to
tho subject j;-: coint??etc end effoctiv.'. ?
The system is an outgrowth of 22
years of legislative experimentation
ami litigation of tax titles and its wis?
dom exemplified by the work being
done by the sinking fund commission?
ers therennder. In this connection J
would respectfully call your attention
to the first eight pnges of the report of
this board. The act of 1892, as it is
being vigorously executed by the sink?
ing fund commission, acts as a sum?
mary and effective gleaning machine
and collects and levies past dne and
unpaid for eight months. This feature
of the law annually saves to the State
thousands of dollars that would other?
wise be uncollected and is a great aid
in collecting county and school funds.
It was not intended, however, that any
robbery should be made of the taxes
collected or in process of collection
applicable'to the ordinary expenses ol
the government. Any other adminis?
tration of the law would work a hard?
ship and inevitably create a deficit in
the sum necessary for the purpose of
the government.
No' legislation in reference to this
matter is required, as I am sure the
good sense and judgment of the offi?
cers executing the law will bring haf
raony.
i'HOSPHATE INTEREST.
This industry has never recovere 1
from the cyclone of 1893, and I fear
never will. We have no longer a mo?
nopoly of the business, and the dis?
covery of phosphate rock in Florida,
Tennessee and Algiers has made com?
petition very lively. The report oi
Phosphate Inspector Jones is gloomy
and discouraging, but I fear Mr. Jones
takes: too pessimistic a view of the sit?
uation.
The State received from Januarv,
1894, to January 1895, $62,898.3'?,
which was also placed to the account
of the sinking fund. From January,
1895, to January, 1896, the receipt*
were $91,532.27, which was also placed
to the credit of the sinking fund. Be?
sides there was $4,158.92 received in
November and December last, which
was placed to the credit of the general
account in the treasury, making in all
$95,691.19. There is now due and un?
paid by the phosphate companies the
sum of $14,019.55 royalty upon rock
actually mined and sold. This added
to the above amount gives$109,710.74,
the amount that should have been re?
ceived from January 1st, 1895, to Jan?
uary 1st, 1896, representing an output
of 219,420 tons. The phosphate roy?
alty received for the fiscal year ending
October 31st, 1892, was $152,280.40.
This upon a royalty of $1 per ton. Up?
on the same royalty we would have re?
ceived for the past fiscal year $219,
421.48.
It must be taken into consideration
Lhat the State receives royalty only
from rock actually sold and delivered,
and not from that actually mined. We
are dependent upon the honesty of the
companies and the ability of the phos?
phate inspector to ascertain the amount
paid and received for the rock for our
estimate upon which to claim royalty.
Last year was a disastrous one for
phosphate and fertilizer companies
everywhere, caused by short crops and
still shorter profits. Unless the situa?
tion has greatly changed since my in?
spection of the phosphate interests last
spring, I am satisfied it would be un?
wise in your honorable body to accept
the recommendation of the phosphate
inspector to reduce the royalty to 25
cents per ton. I have heard of no
complaint from the phosphate compa?
nies on account of the royalty, and I
am satisfied it is low enough for the
present at least.
There is now due and unpaid by
phosphate miners royalty of the past
and previous years to the amount of
$18,094.70. This amount should have
been paid into the treasury, and I have
impressed upon the officers charged
with its collection the necessity of re?
quiring its prompt payment. The
companies are under bond, however,
and no danger need be feared as to it?
ultimate payment.
.STATE PENITENTIARY.
The report of the Superintendent
and board of directors of this institu
tution shows it to be in a healthy, suc?
cessful and sound financial condition.
The number of prisoners confined
during the last fiscal year is 72 less
than for the previous year. This is
due to the sentencing of short-term
convicts to the county chaiu-gang. It
is to be hoped that the number so
sentenced will increase to such on ex?
tent as to allow all convicts sentenced
to the penitentiary to be employed
within the walls or upon the farms
operated by the State. The practice
of leasing convicts to private parties is
objectionable to the people of the
State and liable to be abused. In one
case, in the county of Oconee, I was
compelled to order out the militia for
the purpose of protecting a convict
who had been assigned to a private
contractor within that county. The
people became indignant at the liber?
ties allowed a convict who deserved
the severest punishment. I desire to
say, however, that this waB caused by
a guard acting without authority and
not from any order of tho superinten?
dent. When called to the attention oi
the authorities of the penitentiary the
convict was promptly conveyed to and
confined within the walls of the prison.
I regret to see a want of harmony
among the board of directors, as will
appear to yon from the minority re?
port submitted by Mr. Willoughby.
The matters submitted in such report
were called to my attention, and I met
with the board in order to see that
every means and such information as
the books afforded were given the.,
board for their direction. Mr. WifcS
loughby was appointed a committee oi 1
one to inquire into the contracts made
by the superintendent and to corres?
pond with dealers throughout the
United States with a view of obtaining
supplies for the institution at as low a
orics as possible. I have not recoivol