University of South Carolina Libraries
I'era<a _ew.ETA NEWBERRY, -S. C TUESDAY, JANUARY 12, 1904 904_ AGE ~iW&neral Assembly. -,.for the promotion of and I welcome you, ghtful consideration today undisturbed the sole purpose of of South Carolina. o. f 6t*r veegipeople o n eolveupon you. To the homes and to -sere, and are tirneed. To ren true:and honest pleasure, but a heeie progress yecessar. or-me to induas terests which ~ been ~4is~egin,yo u p1vdig for v iic? gov ICY. execu&e -them the liQhmoo of-send Iconceived diiieces *4-g213,& fA.Ao-'a -mrae.sf x ende stI espeeditis ~ ~2Z,97L2,~S~iOWWgan increase of' expenditure 0V 8 of $3446&63. In this coitection the following raeiirting' 'the-ven ceeded the expenditures by.. ..$101,099 84 ...revene,i exceeded the ependitures by. 10,019 53 t evenue.eceeded the expenditures by.. 50,048 90' ~ ce :pedius eiceeded the revenue by.. 10,045 42 4e9e"penditures eceeded&the revenue by.. 13,924 29 ztheependitures exceeded the revenue by.... 208,795 23 n ~90 t everne -exceedd'the expenditures by.... 56,3o4 29 jftae the:surpus asabQve shown for 1897; 1898, 1899 and na tlito2i7472.56,from the excess expenditures oe eeohand192,amounting to $232,767.94 we have eon5,29 n other words, th~total: revenue rec 1yl apIice(.ton each fiscal year from 1897 to, and in ulinoamount o$6,934,725.33. The total expenditures io his satigpenodamount to $6,950,020.71, showing a deficit of 5 . as revealed above. The reveiiue for 1903, as above stated; mde f89I37.86, received in settlement of claims against th - &#aeGovernmemc, as will be explained further on in .- tins message.;dHad npt this amount been placed to the credit of the eral fund. the deficiency would have.been greater. It is thus sen that thefiances of the State are not in such a deplorable con diton bu 'hefact that the Comptroller-General estimates that the Stae,mus borrow during the year 1904, $425,0oo.0o to promptly mdeet current obligations until:the tax levy of 1904 becomes avail able, shows the finnces to be in an unhealthy condition, to say the east. This stuation should certainly be remedied and a sufScient reivenue shimld berprovided to place the State upon a .cash basis. At your last'session.you. appointed a committee "to consider how best to put the Sti.te upon a cash basis, what additional sources of revenue for the State are available, and what changes.should be made in existing laws for the assessment and collection of taxes." This committee has completed its report, which will be transmitted to you. This report a amrost important one. It has been prepared with great care by legislators experienced in the fiscal affairs of the State,. who have given much time and study to the preparation of their report, and I commend it to your most earnest consideration. The report came into my hands sdi recently that I have not had timen account of other pressing duties-to give it the careful thought and consideration its importance demands, and for this reasoir I ami uxzable just at this time to make recommendations con cenng it. However, in this coinection, I will say that some * change, with a view to raising more revenue, is imperative. The complaint fineqnality in taxation is an old orte, as well as a just one, and.'if your honorable body -could devise some law by which this evil could be remedied, and corporations, as wvell as individuals, be compelled to return all property for taxation at its real value--I as is required by the Constitution-the present tax levy would * ~ greatly Txctdthe necessities of the government. I invite your special attention to this phase of the subject, with the earnest hope that you, in your wisdom, may be able to enact some law that will compel honest returns of property and provide for such penalties as will deter those who seek, under oath, to evade the law. This is the most important function of the State, so far as its business. affairs are concerned, and it is not only an r:nwise, but a suicidal policy, to continue expending more money than the revenues of the State amount to.- The question resolves itself into this, that ex penditures must be curtailed, or more revenue raised. The former, I fear, is impracticable, and the latter can only be done in one of three. ways Fist by requiring the county authorities, upon whom devolves the duty or ascertarnig an placig upon the tax books all property. to exercise a rigijk su#ervision of tax returns, and forc ing them to require a proper~.isting of property heretofore escap ing taxation. Second, by a lice#ge tax as suggested by your com mittee; or third, by increasint' fhe tax levy, which is undesirable, as it will oniy place additior'i iurdens upon the honest taxpayer, while the "tax dodger" still escape. In connection with this part of my message I wish to ac knowledge my obligation' to.edepartments of the Comptroller General and Tiesurer foi 1ie liormation which has enabled me to furnish you with accuratefg s t the financial condition of the State. INSUIUNCE ICENSES. The Comptroller-Genera lsit oncerning this department is a strong and busisslike pr&e atidr of the subject. This report shows the number of isuranceompanies doing business in this State, their- financial cdiidition ;i amount paid to them in pre miums and the amdunt plaid idr losses incurred, these aggregating very large totals. This report embraces the.wok4gs of one of the most important business departments of ourg$tate government. It condemns the present insurance laws ;as bei6gce defective and inadequate, and offers suggestions providin gf'r the better examination of compa nie organized in this State. w1 a view to protecting our citizens against irresponsible comp . The report recommends also many changes;in our :ense Ts, including a schedule of fees to be paid, and. and to whom they shall be paid. These changes are- many 'a z f&r-reaching.: They are fully de tailed in the report, and for," reason Ishall hot attempt to enu meiate them here. It is estimated.t,at under the proposed changes the State will ieeive a otal evenue'of $127,6oo from this sou-ce, :and Iquote only the folow gx'tract- relating to this portion of the report: f 'This would give a net reVame of $io8,600, April 1, 1904, avail able for the,.geneal expeses Athe State government. In addi tion tohis, the State woafie equarterly an estimated revenue total revenuetreci dting thfear.:19o4, $201,600. Of'course, tie revenue for 'ioA iiFdgea,k say to $135,000. This law wouldbe bettWor.tehe -Ahe companies, as it would relieve this offie andte .Watdeal gf expense and trouble." Thi is a - is of a business subject. and s well woithy of your m9st es given are decidedly interest taXfid6 (b eficial to both .~ e. n -itself ricilfund the die e debt of South Caro iahs beet decreased during tbeYar 1903 by $i25,oo-oo of St-ite Capitol Bonds su-renderedpy the United States Government it aettlement of claims of the State of South Carglina against the United~States Government, and decreased on books of State Treas urer by $37,ooo.oo Blue Ridge 'Rilroad Bonds, written off the books by direction of the Act -of the General Assembly. (See Acts of 1903, pages 266 and 267.) The following figures show the bonded debt .of the State: January ., 1904. Principal funded.. .. ....................$6,5,674 14 Principal fundable.. .. .. .. ..................I.T.8 64 I $6,684,882 78 As an offset to these figures, there is an outstanding credit of $493,277.26, as showvn below. SINKING FUNDS. The assets .of the Cumulative Sinking Fund, for the reduction and payment of the South Carolina Brown 41-2 per cent. bonds and stocks, having been increased during the last fiscal year by $33,592-43, now aggregate $493,277.26; all of which is so invested and loaned as to yield from four to five per cent. annual interest. The assets of the Ordinary Sinking Fund having increased $3,780.02 during the last fiscal year, on December 31, 1903, amounted to $61,387-39, of which $2,764.18 belong to escheats; $53,228.28 of the Ordinary Sinking Fund is loaned cat at five per cent, annual interest. INSURANCE SINKING FUND. Under the law providing for "State Insurance of Public Build ings" 75 Sinking Fund policies are now running, carrying $583,891.76 of insurance on public buildings at an aggregate premium, of $5,o68.11. The assets of this fund at the close of year 1903 ambunt to-S11,651.25, of which $6,o00.o0 is loaned at five per cent. annual interest. A FINANCIAL SETTLEMENT WITH THE UNITED~ . . STATES GOVERNMENT. I am glad to announce to you that. through the efforts of Senator Tillman, an important settlement has been effected with our Na tional Government. This tt-ansaction involved the payment of claims aggregating $337,887.96, which amount included a cash pay ment of $89,137.86 into our State Treasury. This is a matter of the greatest importance and we~ can wvell congratulate ourselves upon so satisfactory a settlement and one which came at so opportune a time. I shall have the pleasure of transmitting for your informia tion in a special message, by request of Senator Tillman, his de tailed communication upon this' subject, together with his speech in the Senate. I deem it appropriate just here, however, to submit the following brief extract from this communication, which has specific information p.pon the settlement which was so satisfactorily made: "It affords me great gratification to hand you herewith warrants* Nos. 5746 and 5747 on the United States Treasurer for $89,137.86, together with receipt from the Southern Express Company for $125,000 coupon bonds of the State of South Carolina, with coupons attached aggregating principal and interest, $248,750, making a total in cash and bonds of $337,887.86. This warrant and these bonds have been obtained by my rec:eipting the United States in full for the claim of the State of South Carolina which grew out of ex penditures by the State on behalf of the United States Government during the War of 1812-1815." Further on in thiscommunication Senator Tillman makes special acknowledgment of the valuable assistance rer.dered him m1 this matter by Mr. James M. Baker of, Lowndesville, S. C., assistant librarian of the Seiate. In reference to-these efficient services Sen ator Tillman makes the following request in his letter to me: "In conclusion, I desire to suggest that it will be an act of grace ful recognition and of simple justice to Mr. Baker that the Legisla ture should recognize his invaluable services by appropriating a smill amount of money, say $i,ooo, out of that which has been ob tained. His work was not done with this idea, however, but. he is poor and has a growing family, and the State can well afford to pa him handsomely." In view of the great service rendered our State by Senator TiW man in this matter, I think any request he makes here should finif a ready response. I therefore ask your consideratioa of this and concur in the request made by Senator Tillifan. The wirrants Nos. 5746 and 5747-on the Ti-easurer of the United Sttef f6r $89,137-86, were duly received and at my requst this amonit wis deposited by the State Treasirer to the credit of the general fuid. As the State was under the necessity of borrowing money I thoght this was the most judicious disposition,to make of these fiids. EDUCATION. There is nothing of greater iinportahce to a State than is the. education of its people. Never was this neid more ai-embracing and comprehensive than it is today.- This is an age of progress an enlightenment, and history arid statistics alike -reveal the fact that the most prosperous countries are those with an ed cated citiien ship. Under a democratic form of government, in a republic l.ik ours, where each individual has a direct; and equal share inthE responsibilities of citizenship, it is absolutely necessary that tlie people should be educated. Only in this way can there be a propei recognition of our relation and duty to the State. - To those who are charged with divecting the affairs of our State the work of educating the peop should appeal mdst strongr and we should manifest thii by earnest labor,in, this trulyr grei field. We should give the utmost consideration to every briihe of this work, from the little log schoolhouse to the fniversity; fdi in advancing our educational facilities we will not:only make our'State more prosperous, but we will make permanent and steadfist a hig standard of citizenship. THE COMMONSCHOOLS The propir educition of a people must, of necessity, have ts beginning in th noimni schools. These shouldbe in eyr munity .in d5r6Sile; they sh6uld be as welh.o4rganiized a busm bisis asit sp ible t havetiff they ho!d es p ove by?c Pete tit.;tiafiulength schoa ttdeins nrY e:hodii' bi netadd boife b is tueta lirad ed~ schoa ntegh chol igorvrd si ra ' o e ronin g nt ols in tencoutr n We usand'e the at .tese wutr wschools are 1hnt. t hi le it is true that the gj&d&dschols and the high'schobols iniouir van'ilis towns shoV striking, and, marked im'pr'Tov"meit,. the coiixSf'~r-_ rounding the'schools in the zcountry are not so-stsacoy We. msreember that' these country schioLs.ar nQt.i hckySt tied communities, that they hive no large sool fund; but we ndst also remember that a large majority of the childrien of thStlt are, of necessity, absolutely dependeht upon these schools for thii preparatory education. The average white school in South Carolina is open~only 112 days in the year and. the average salary paid to the teacheirs in these schools amouns to only $20.3.o4. Surely this is: nbt a record upon which we can afford to rest and be content. The imperative neded which confronts us demands that we should improve this situation. It is an absolute reproach to us that these schools are open only fdo- 12 days, which statement means -that many are bpen for a muchkshorte period. The same, condition exists when 'we contemplate the sall salary paid to the teachers, faithful men and women who are devot ing themselves to this life work. It is most gratifying to know that these conditions are being more realized by our people 'year by year, and that there is a determina tion to improve our commonr schools. In April last many of our leading educators held a conf.erence in Columbia, and it .as then determined to organize and' conduct mn educational .campaign for imliroving school conditions. This plan was carried out by thie appointment of a committee consisting of. State Superintendent of. Education 0. B. Martin, President D. B. Johnson, .of Winthrop College, and myself, to take active charge of this workc. A number of meetings-were held at various places throughout the State, mahy speakers interested in education spoke at these gatherings, and, by awakening .decided interest among the people, I believe that much good has been accomplished. At these meetings great stress was laid upon the necessity for the improvement of school buildings and grounds,t and several'ladies were employed by the comrnittee to prosecute this work. In ac cordance with .this move, these ladies visited a number of counties, held meetings among the patrons and formed organizations among parents and children. for further labors in this lin.e. In .conducting the educational campaign and in defraying its expenses. the com mittee was financially assisted by the Southern Educational Board, to which Board I wish to render thanks for this valuable. aid. RURAL SCHOOL LIBRARIES. There arc entire counties in our State in which not a single county school library is to be found. The proper training of a people is hindered by this lack, the school work is not as complete as it. should be, and I concur in the recommendation of the State Superintendent of Education that a part-if this be. only a small portion-of the State school fund shall be used to encourage the estaNishment of libraries in our county schools. CONsoLIDATION OF RURAL SCHooLS. Other States in the Union that are making marked progress in all educational lines are attempting, through consolidation, to es tablish satisfactorily a strong system of county graded and high schools. This, in my judgment, is, for many reasons, eminently desirable, as in itself it will furnish means at home for the p'oper preparation for college. Experiment has proved that it is also more economical to transport the children at the public expense to a large central school than it is to conduct several smaller schools at remote and isolated sections. I herewith present a few figures from the report of the State Superintendenzt of Education: The total expenditures for our pubilic conols rdnring- the nps year amounted to $I.oA6,iAuno The