The Manning times. (Manning, Clarendon County, S.C.) 1884-current, November 20, 1895, Image 1
______________________ -~-- ~ 2 -17
VOL* Xi. MANNING., S. C... WEDNESDAY, NOVEMBER 20. 1%
CORPORATIONS
)HE CONVENTION DISCUSSES THE
ARTICLE THEREON.
Severai New and important lrovisions
Carefuly Reviewed--what Wza. said anid
Done.
COLsMABI. Nov. 11.-Special:
When the Convention passed oif from
the subject of lynching and lynchers,
it proceeded to the consideration of
the article on corporations. Section 1
was adopted, as follows:
Section 1. The terui corporation as
used in this article includes all asso
ciations and joint stock companies
having powers and privileges not pos
sessed by individuals or partnerships
and excludes municipal corporations.
SECTION TWO.
When section 2 was called up, Mr.
Gage said that section 36 in the article
on the legislative department covered
the same matter muchmore fully and
he moved to strike the section out.
Mr. Johnstone said that this was the
most important section in the whole
article.
Considerable objection was made to
the motion and it was withdrawn by
Mr. Gage.
The section was then adopted as fol
lows:
Section 2. No charter of incornora
tion shall be gra'nted, changed or
amended by speciai law except in the
case of such charitable, penal or re
formatory corporations as may be un
der the control of the State, or may be
provided for in this Constitution; but
the legislature shall provide by gener
al laws for changing or amending
existing charters and for the organi
zation of all corporations hereafter to
be created, and any such law so passed
as well as all charters now existing or
hereafter created, shall be subject to
future repe-d or alteration.
kECTION THREE.
When section 3 was taken up, Mr.
Haynsworth moved to strike out the
words "and telephone." Telephone
companies did not transmit messages.
Dr. Stokes moved to table the amend
ment, which the convention refused to
do.
Mr. Haynsworth's amendment was
then adopted by a vote of 52 to 37.
Mr. Stokes then amended it by plac
ing after the word "companies"on the
third line the words "and other trans
mitting companies."
Senator Tillman moved to amendby
adding at the end of the section the
words "and taxation." Senator Till
man said they were not now getting
any taxes from the Pullman carcom
panies. and he wanted to reach it. His
amendment was then adopted.
The whole section was then adopted,
reading as follows:
-Section 3. All railroads and canars
h highwy, and all rail
express, .pm canal and
other transnortation companies and
all telegraph companies and oth
er, transmitting companies are
declared to be common carriers in
their respective lines of business, and
-subject to liability as such. No such
porporation shall be permitted to make
any contract relieving it from its com
mon law liability and'taxation.
Pending diseussion of this amend
ment, the Convention, on motion of
Dr. Stokes, took a recess till 5:30, p.
At the afternoon session section 4.
was discussed at some length, but, on
motion of Dr. Stokes, was passed over
till to-morrow.
Section 3 was then recurred to, and
Dr. Stokes offered the following sub
stitute, to be printed in the journal:
Sec. 3. All railroads and road ways,
canals and other waterways used in
whole or in part by corporation for the
transportation of persons or freight for
hire and public highways, all railroad
express, sleeping car, canal and other
corporations engaged in transporta
tion for hire and all telegraph and
other coporations engaged in the busi
ness of transmitting intelligence for
hire are common carriers on their re
spective lines of business and are sub
ject to liability and taxation as such.
It shall be unlawful for any such cor
poration'to make any contract reliev
ing it of its common law liability.
Mr. Lee then sent up the following
amendment thereto, which was also
ordered to be printed in the journal:
Add "or permitting the same."
The section was then passed over till
today.
' SECTION FIVE
was amended onmotion of Dr. Stokes,
and passed in the following shape:
Sec. 5. No discrimination in charges
-'u'facilities for transportation for the
same class of freight or passengers
*within this State for the transmission
of intelligence, or coming from or go
ing to any other State, shall be made
by any railroad or other transportation
or transmission company between
places or persons and no ::ailroad or
transportation company shall charge
a higher rate per ton per mile to any
station, landing or port in the State,
for the transportation of any class of
freight, than the said company or cor
poration charges on the same class of
freight to any station or landing or
port of this State. Persons and prop
erly transported over any railroad, or
by any other transportation company
or coporation, shall be delivered at
any station, landingor port at charges
not exceeding the charges for the
transportation of persons and proper
ty of the same class, in the same di
rection, to any more distant station,
landing or port. Excursion and com
mutation tickets may be issued at spe
cial rates.
SECTION SIX
was then called up, and Dr. Stokes of
-fered this substitute:
Sec. 6. Any railroad or any other
transportation corporation, and any
telegraph or other transmitting corpo
ration organized under the laws of this
State shall have the right to connect its
-roads or lines at the State line with
those in other States, and shall have
the right to intersect with or cross any
other railroad, street railway, trans
portation road or transmitting line,
and shall each receive and transport
the freight, passengers, cars (loaded or
empty). and measages delivered to it
by another without delay or discrimi
nation
The substitute was adopted.
sECTiON SEVEN
was then adopted as follows:
Sec. 7. No railroad or other trans
portation company, and no telegraph
or other transmitting company, or the
such corporation. shall consolidate the
stock, property or franchises of such
corporation with, or lease or purchase
the works or franchises of. or in any
way control, any other railroad or
other transportation company and no
telegraph or other transmi ting com
pany ownina or' having under its con
trol a parallel or competing lie: and
the qu'esion whether railroads or oth
er transportation companies or tele
graph or other transmitting companies
are parallel or competing lines shall,
when demanded by the party com
plainant, be decided by a jury as in
other civil causes.
SECTION EIGHT.
Section 6 was called up, and Mr. J.
L. Glenn offered to amend by insert
ing after the word "State" on line six,
the words "unless the railroad so op
erated or leased is owned by a corpora
tion chartered by the laws of the
State."
Mr. W. B. Wilson then moved to
table amendment, after stating his
reasons therefor.
Mr. Glenn-My position is not as he
would have vou believe. If a corpo
ration owning or leasing a railroad
under the decisions of our courts that
corporation can be sued and held re
sponsible.
Mr. Henderson-Suppose the corpo
ration in this State is insolvent and
you wish to reach the outside compa
ny?
Mr. Glenn-All judgments come be
fore bonds and mortgages and I have
no idea whatever of throwing those
cases in the United States courts.
Mr. Johnstone-I would not for a
moment seek to throttle the rail.oads
of this State, but I am opposed to
them becoming the masters of our peo
ple, and I agree with tde gentleman
from York that we should force them
to take out charters in this State so
that they willbe amenable to our laws.
Mr. Prince said he could see no rea
son for this measure.
Mr. Johnstone then spoke again and
said that there were really only two
constitutional principles involved in
the whole article. One was the sec
tion embodying the statue of 18-11. He
wanted to know why they wanted to
take the cases to the United States
courts.
Mr. Prince answered that it was to
let a railroad get justice in a country
where the jury was not influenced by
the local plaintiff.
Mr. Johnstone said that the other
day Mr. Paince was an earnest sup
porter of local self government.
Mr. Prince-In criminal matters,
which are very different indeed.
Mr. Johnstone was heartily with
the gentleman from York. They
should not think that he was a vulga
rian opponent to either corporations
or capital. There was quite a tilt be
tween Messrs. Johnstone and- Prince
about the United States courts.
Mr. W. B. Wilson once more spoke
very earnestly on the same line. If
they passed this matter they would
prevent any such corporation commea
in in the future. It will restore ol1
charters and get them into line again
-make them domestic corporations.
Mr. B. R. Tillman-Suppose you do
not, what is your remedy. It seems
to me that if you get these roads back
into line by this scheme, that is the
very backbone of the whole article.
Mr. J. L. Glenn said what he want
ed to do was to keep any road system
from coming in in the future.
Mr. Haynsworth made a few re
marks and then Mr. Prince's motion
to table the section was voted down.
Mr. Glenn's amendment was then
tabled.
Senator Tillman offered to amend by
inserting after the word "operated"
on line three the words "or is now be
ing operated in the State'' which was
agreed to.
The section was then adopted as fol
lows:
Section S. The general assembly
shall not grant to any foreign corpo
ration or association a license to build
operate or lease any railroad in this
State; but in all cases where a railroad
is to bebuilt or operated or is now be
ing operated in the State and the same
shall be partly in this State an~d partly
in another State, or in other States, the
owners or projectors thereof shall first
become incorporated under the laws
of this State; nor shall any foreign
corporation or association lease or op
erate any railroad in this State unless
the railroad so operated or leased is
owned by a corporation chartered by
the laws of this state, or purchase the
same, or any interest therein. Con
solidation of any railroad lines and
co rations in this State with others
shal 1be allowed only where the con
solidated company shall become a
domestic corporation of this state. No
general or special law shall ever be
passed for the benefit of any foreign
corporation operating a railroad under
an existing license of this state or un
der any existing lease; and no grant
of any right or privilege, and no ex
emption from any burden, shall be
made to any such foreiign corporation
except upon the condition that the
owners or stockholders thereof shall
first organize a corporation in this
State under fhe laws thereof, and shall
thereafter operate and manage the
same and the business thereof under1
said domestic charter.
sECT1O5 515E.
Mr. Stokes moved the addition of the
following:
Section 9. Nothing .prohibited by
this State shall be permitted to be done
by any coporation or company or per
son or persons, either for its or their
own benefit or otherwise, by its or
their holding or controlling in its or
their own name or otherwise or on the
name of any oilher person or persons
or other coporation or company
whomsoever, a majority of the capital
stock or of bonds having voting power
of any railroad or transportation com
pany or corporation created by or ex
isting under the laws of this State, or
doing business within this State.
He withdrew this in order to make
it section 20.
Section 9 was taken up and the word
"special" was put in before *he word
"charter" in the first line, on naztion
of Mr. Stanyarne Wilson.
Mr. Oliver offered the following to
go at the end of the section:
The general assembly shall provide
for the section of a State bank exam
iner, and define the duties and powers
of such otlice. Said ollicer shall re
ceive such compensation as may be
fixed by law.
Mr-. Oliver related the dangers of
banking schemes being operated with
out such a provision. He made his
first speech before the convention and
made a most favorable impression.
Dr. Smith of Barnwell thought the
idea was a good one. H is little town
had lost $11,000 in a wildcat scheme
about which it could get no informa
LOST
Mr. George Johnstone suggested
that the State did not have sufficient
banks to keep a "bank examiner" em
ployed.
Mr. R. D. Lee wanted some further
restrictions thrown around the office.
The amendment was agreed to and
the whole section was then adopted in
the following shape:
Section 9. The general assembly
shall have no power to grant any spe
cial charter for banking purposes, but
corporations or associations may be
formed for such purposes under the
general laws, with such privileges,
powers and limitations not inconsis
tent with this Constitution as it may
deem proper. The general assembly
shall provide for the election of a
State bank examiner, and define the
duties and poweis of such office. Said
office shall receive such compensation
as may be fixed by law.
SECTION TEN
Was slightly amended, and was
passed in the following shape:
Sec. 10. Stock or bonds shall not be
issued by any corporation save for
labor done or money or property actual
I received or subscribed, and all ficti
cious increase of stock or indebted
ness shall be void.
SECTION ELEvEN.
Section 11 was then called up, Dr.
Stokes explaining the -ncaning of the
section, which he Said was to allow
minority representation in voting.
This had been found in a good many
constitutions. The section was adopted
in the following shape:
Sec. 11. The general assembly shall
provide by law for the election of di
rectors, trustees or managers of all
corporations by the cumulative
plan; that is to say, so that each stock
holder, shall be allowed to cast, in per
son or by proxy, as many votes as the
number of shares he owns multiplied
by the number of directors, trustees
or managers to be elected, the same to
be cast for any one candidate or to be
distributed among two or more caudi
dates.
SECTION TWELVE
Sec. 12. Corporations shall not en
gage in any business except that spe
cifically authorized by their charter or
necessarily incident thereto.
SECTION THIRTEFN
was adopted as reported by the com
mittee as follows:
Sec. 13. The general assembly shall
enact laws to prevent all trusts, com
binations, contracts and agreements
inimical to the public welfare and to
prevent abuses, unjust discrimination
and extortion in all charges of trans
porting and transmitting companies,
and shall pass laws for the supervision
andiregulation of such companies, by
commission or otherwise andshall pre
vide adequate penalties, to the extent,
if necessary for that purpose, of forfeit
ure of their franchises.
SECTION FOURTEEN.
Mr. Breazeale moved to strike out sec
tion 14. Lost yeas 54, nays 55.
Dr. Stokes offered some slight
amendments, which being adopted the
section passed in the following shape:
Section 14. A commission is hereby
established, to be known as the rail
road commission, which shall
be composed of not. less than
three mem bers, whose powers
over all transporting and trans
mitting corporations and duties, man
ner of election and term of office shall
be regulated by law. Provided that
the members thereof shall be elected
at the expiration of the terms of the
p resent railroad commission, who are
hereby continued in office for the
terms for which they were elected, and
until otherwise provided by law, the
said commissioners shall hiave the
same powers and jurisdiction, perform
the same duties and receive the same
compensation as are now conferred,
prescribed and allotted by- law to the
existing railroad commissioners.
Pendincwthe consideration of section
15, the Zlonvention, on motion of
Mr. Hamel, adjourned.
SECTION FIFTEEN
COLUMBIA, Nov. 12.-Special: The
Convention got promptly to work
this morning-resuming the considera
tion of the article on coporations.
The pending question was the mo
tion of Mr. Fitch of Charleston to
strike out section 15, which read as
follows:
Section 15. Every employee of any
corporation doing busmness in this
State shall have the rights and reme
dies for injury suffered by him from
the act or omission of such corpration
or its employees as are allowe by law
to other persons not employees.. And
when death ensuses from any injury
to an employee the legal or personal
representative of such employee shall
have the same rights and remedies as
are allowed by law to such representa
tives of other persons. Any contract
or agreement, expressed or implied,
made by any employee to waive the
benefit of this section shall be null
and void.
A SUBSTITU~TE.
Ai, the very outset Mr. W. B. Wil
son offered the following substitute
for section 15:
Section 15. Any employee of any
railroad corporation shall have the
same rights and remedies from any in
jury suffered by him from the acts or
omissions of said corporations or its
employees as are allowed by law to
other persons not employees, when the
injury results from the negligence of a
suerior agent, an officer or of a per
son having the right to control or di
rect the services of a party injured,
and also when the injury results from
the negligence of a fellow servant en
gaged in an other department of labor
from that of the party injured, or of a
fellow servant on another train of cars,
or one engaged about a different piece
of work. knowledge by such emplo
yee injured of the defect or unsafe
character or condition of any machin
ery, ways or appliances shall be no de
fence to an action for injury caused
thereby, except as to conductors or
engineers in charge of dangerous or
unsafe cars or engines, voluntarily op
erated by them. When death ensues
from any injury to employees, the
legal or personal representative of the
person injured shall have the same
rights and remedies as are allowed by
law to such representatives of the other
persons. Any contract or agreement,
express or implied, made by any em
ploee to waive the benefit of this sec
tionl shall be null and void and this
section shall not be construed to de
prive any employee of a corporation
or his legal or personal representative
of any right he now has by the law of
the land.
The general assembly may extend
the remedies herein provided for to
any other cases of employees.
S0.ME 1)EBIATE.
Mr. Ragsdale said they could not
mend matters by adopting provisions
manifestly un-just. He was opposed
At present corporations were liable
for the same damages as individuals.
The whole thing was wrong in princi
ple and should come out. There
should be no discrimination between
corporations. Look at the matter
aside from corporations, and
you will not hold a corporation liable
for damages to a coservant. All that
could be reasonably expected was al
ready provided for in a better way
than in this section. The injured
man had the best claim against a
corporation. The servant had ad
equate remedies at law. They could
not defeat the rightsof a servant, ex
cept in cases of insolvency--something
that could not be helped. The rule as
to negligence had been extended as far
as it should be. This was putting too
much on the corporations. There was
great danger of a - unfair liability uTr
der the section. The proposition was
too unjust to do any good.
Mr. McCaslin wanted the employees
of a road protected in some way. Take
the case of arear end collision when the
rear train follows; orders; there was
every reason why the conductor, en
gineer and firemen should be protect
ed and be allowed to recover.
Mr. Henderson stated that in such
cases the injured persons had a com
mon law right and the fiagman stacd
in the shoes of the railroad. The rail
road conferred certain duties it had
to discharge upon its flagman and
that made the corporation responsible.
MR. STANYARNE WILSON.
Mr. Stanyarne Wilson thought that
Mr. McCaslan was correct.
3IR. PRINCE.
Mr. Prince said that the trouble was
that it only applied to one class of
corporations-railroads.
Dr. Stokes thought the substitute
covered this and all other objections,
in his opinion.
The substitute was then put before
the house by thepresident.
There was further debate on both
sides.
Mr. Henderson submitted that if an
engineer was obeying the orders of a
conductor, the conductor stood in the
attitude of the coiportion and was re
sponsible.
Mr. Wilson said it only makes the
railroad liable when an employe could
not protect himself from the acts of a
superior.
r. J. L. Glenn said this substitute
with a few amendments was the same
thing as the present law. This was
simon-pure legislation. It was regu
lating the relation between emplcye
and employer. If not amended, the
matter would be unwise-it would be
class legislation.
Dr. Stokes wanted to know if the
corporations didn't get special privil
eges.
Mr. Glenn said they got none so far
as the employes were concerned. The
roads had no authority over their em
ployes different from an individual.
Mr. Wilson's plan went further in
class legislation than all other schemes
he had heard of; it wanted to discrim
inate between the corporations.
Mr. Glenn then cited cases, assisted
by Mr. D. S. Henderson, going to
show that even a section master occu
pied the position of the company in
regard to his little crew.
Mr. Howell then took the floor,
agreeing with Mr. Glenn, and said it
was class legislation of a bad kind.
There were farmers who had corpora
tions of their own.
Dr. Stokes-If you are satisfied with
the law as it stands, why object to
putting it in the Constitution ?
Mr. Howell said that he objected
because he wanted no leislation
placed in the Constitution. He would
vote against the section and the sub
stitute also.
Mr. Bates asked him if section 10
was strictly legislative also.
Mr. Henderson asked Mr. Bates,as a
member of the committee, why he had
p resented a report that he admitted to
be purely legislative in nearly all par
ticulars.
Mr. Stanyarne Wilson then argued
that it was simpl to put the employ
es on the same plane as passengers.
Mr. D. S. Henderson moved to in
definitely postpone the whole. Lost
yeas 52, nays 58.
Mr. Hendesn moved to strike out
the last sentence to the substitute read
ing "The general assembly may ex
tend the remedies herein provided for
to any other class of employees."
Mr. Otts moved to table this amend
ment, which was done.
Mr. Ragsdale said the substitute was
less objectionable than the original
and should pass for that reason.
Mr. J.- L. Glenn moved to strike out
the words "or one engaged in a separ
ate piece of work" The motion was
tabled on motion of Dr. Stokes.
The substitute of Mr. W. B. Wilson
was then ado pted and clinched on
motion of Dr. Stokes.
Section sixteen was then taken up
and Mr. Stanyarne Wilson moved to
strike out all after the word "article"
on the third line.
Mr. W. B. Wilson said there was
nothing which they could put in this
Constituion that would so frighten
capital away from the State as this.
It was throwing an unnecessary block
in the way of the march of progress
upon which the State was just enter
ihe amendment was adopted and
then the section went through in this
section 16. All existing charters or
grants of corporate franchise under
which organizations have not in good
faith takeh place at the adoption of
this Constitution shall be subject to
the urovisions of this article.
Tfie portion of the section stricken
out read as follows:
"And all such charters under which
organizations shall not in good faith
take place and business be commenced
within one year from the adoption of
this Constitution shall thereafter have
no validity."
Section seventeen was adopted as
follows:
Section 17. The general assembly
shall never remit the forfeiture of the
franchise of any corporation now
chartered, nor alter nor amend the
charter thereof, nor pass any general
or especial law for the benefit of such
corporation, except upon the condi
tion that such corporation shall there
after hold its charter and franchise
subject to the provisions of this Con
stitution; and the reception by any
corporation of any provision of any
such laws, or the taking of any benefit
or advantae from the same, shall be
conclusivel held an agreement by
such corporation to hold its charter
and franchise under the provisions of
this article.
SECTION EIGHITEEN.
This section fixed the liability of
stockholders at the amount of their
shares. Mr. Stanvarne Wilson moved
to add "and five per cent. additional."
Mr. Ira B. Jone thught the matter
should be left to the general assembly.
Mr. George Johnstone said he could
r ve them the history of this act
-nown as the "5 per cent. act." They
had adopted this act because the radi
cal rag required it. The gentleman
from Spartanburg speaks of creditors.
The creditors inquire into the credit of
the person to whom they are extend
ing it. Can't the individual inquire
into the condition of the corporation ?
Certainly they can. Yesterday we
incorporated a provision for a public
examiner to inquire into the condition
of the corporations. That is the very
best method to control the corporation.
Others should be considered. Look at
the orphans and widows and women
of your land; almost invariably their
scanty earnings are invested in these
corporations, because they cannot be
come active agents in business. And
here it is sought by the gentleman
fr-'m 3partanburg to have the invest
ors responsible, almost entirely re
sponsible, for the dishonesty of the
corporaticns. The creditor takes
everything. What more does he
want? I am with the gentleman from
York and again move to lay it on the
table.
Mr. Gage-The Constitution of '6S
leaves the matter with the legislature.
If our Constitution provides that the
stockholder shall not be responsible
above the value of his stock, the world
knows it and it will be no injustice.
As to the other consideration, if a man
puts $100 into the corporation, he
looks after to save the $100, to save the
100 cents and not the 5 per cent. The
clause submitted should be adopted.
Mr. Haynsworth said: There is an
other reason why this should be de
feated. I don't think the liability is
proper without incorporating with it
these provisions that protect the inno
cent creditor.
Mr. Stanyarne Wilson moved to
strike out section 18, but the conven
tion refused to strike it out.
Mr. Bryan moved to add the follow
ing to the end of the section:
Provided, that the stockholders of
very corporation or joint stock asso
-iation for banking purposes shall
lso be individually responsible to the
amount of their respective share or
shares of stock in any such corpora
ion or association for all its debts and
liabilities of every kind.
There was a running debate on this
motion between Messrs. Johnstone,
Bogan, Henderson and Sheppard.
Sir. Sheppard moved to table, but
withdrew the motion.
Mr. Gage thought the matter should
be investigated fully. No one would
leny that stockholders were liable for
100 per cent. The difference between
banks and other corporations is this:
You start a factory with a capital of
Wl00,000 and the plant is liable, but
a bank has a capital of $25,000 and has
leposits of $75,000. I think those de
positors should be secured. In order
to make it secure, that people should
yo there and deposit this money, I of
er this substitute for the amendment:
Provided, That stockholders in
anks or banking institutions shall be
iable to depositors therein, in a sum
qual to their .stock, and over and
above the same.
This' amendment was subsequently
withdrawn.
Mr. Bryan's amendment was tabled
y a vote of 55 to 41.
Mr. Ragsdale then spoke. Why do
1he banks want to be relieved of the
responsibility ? It is a sound trust
rund, and they ought to be liable for
something more than their stock. If
they get in a shaky condition the
stockholders are the first who know
anything about it. What considera
tion does the depositor reeve for de
positing his money ? Very rarely
anything. These stockholders are the
:wners of the bank, and if they take a
man's money and lend it they should
be responsible for it.
Dr. Timmerman- As a rule banks
:on't do business on the money of the
:epositors. They do it on the capital
stock, and when we undertake to say
that stockholders shall be responsible
we virtually drive out banks. No
man of sense would put his money in
a bank if this prevailed.
Mr. Stanyarne Wilson offered the
ollowing as a substitute for the whole
matter:
Section 18. Debts of corporations
shall be secured by such individual
iability of the stockholders and other
means as may be prescribed by law.
Mr. Wilson spoke in favor of his
substitute.
Mr. W. J. Montgomery thought no
stockholder would take stocik in a
bank if this provision was in force.
Ble was in favor of Mr. Stanvarne Wil
son's amendment. We could not tell
what restrictions would have to be
placed upon banking institutions in
the future. They were doing as much
for the State today as any one thing
in the State. Every one would ac
knowledg~e that the establishment of
ocal banksi had been the means of do
ng away with the ruinous commission
business, enabling the farmers to run
>n a cash basis.
Mr. Montgomery said he was always
in favor of regulating so as to control
:orporations. but he did not wish to
pass measures to choke them off. At
die banquet last night there was much
alk about the future prosperity of the
State. They should not now try to
keep such institutions out of the State.
[t was a part of the history of South
Carolina that, without a bank examin
r, there were fewer failures of banks
in South Carolina than anywhere else.
rhe other point was that these institu
tions are not making more than a rel
onable rate of interest on their money
nestment. If they made less money
~he people would not go in them at all.
rhe people were afraid of taking stock
n which there was any considerable
iability. This puts every corporation
-and we ought to have more of them
-on its good behavior, and puts
iioney in a shape that the targather
:ould find it.
The convention at this juncture took
a recess antil 7 :30 p. in.
At the night session section 18 was
again taken up. the pending question
demg Mr. Wilson's substitute.
Dr. Stokes moved to table the Wil
vm subs3titute-whbich was done.
There was then further debate, by
Nfessrs. IHenderson, Stokes, John stone,
3age and Lee.
Dr. Smith moved to lay Mr. W. B.
Wilson's amendment on the table, but
de withdrew to allow Mr. W. B. Wil
son to speak.
Mr. G3age was just saying the ques
ion had been beclouded by injecting
into it the matter of the probabilty of
de State bankino- svstemu being rees
tablished, when I~r. Stokes interrupted
nd the previous question was then
rdered, Mr. Johnstone first offering
uhis amendment:
Section 18. Every stockholder in a
PUBLIC EDUCATION.
THE CONVENTION TAKES UP THAT
IMPORTANT MATTER.
A Lengthy and Interesting Discussion of
the Article as Submitted by the Commit
tee.
COLUMBIA, Nov. 13.-The conven
tion this morning commenced the
consideration of the article entitled
"Education." The first section went
through without debate, in the follow
ing form:
Section 1. The supervision of pub
lic instruction shall be vested in a
ste ce superintendent of education, who
shall be elected for a term of two years
by the qualified electors of the State,
in such manner and at such time as
the other State officers are elected: his
powers, duties and compensation shall
be defined by the general assembly.
SECTION TWO.
When section 2 was taken up, Mr.
Efird offered this substitute:
Section 2. The general assembly
shall provide by law for the election
or appointment of such county, town
ship or principal school officers as oc
casion may require.
Mr. Patterson then offered the fol
lowing substitute:
Section2. The general assembly shall
make provision for the election or ap
pintment of all additional school of- 1
cers.
Mr. Efird was willing to accept the
Patterson substitute if he would strike
out the last clause.
Mr. Mitchell, the chairman of the <
committee, asked that the amendment
be tabled. The article left to the leg
islature the selection of all officers 1
save the school commissioner. These
commissioners had never been paid
properly. The commissioners should
be paid an adequate salary. These
men had to visit over 4,000 separate 1
schools. He thought they should be
careful and provide a good system.
Mr. Ragsdale thought the commit
tee's report was superior to either of 1
the substitutes. The office should be a
constitutional, elective one. If any
thing had been taught by the gentle
man from Edgefield in the last few
years,it was that they should do away
with appointive offices and allow the
people to elect their officers. There
was n use in talking about appoint
ing them. It was not Democratic. He
wanted the people to choose their of
ficers from the highest to the lowest.
There was further debate, by Mes
srs. Perritte, Field, Sheppard, Parrott
and Prince.
Mr. Efird inquired whether Mr.
Patterson's amendment did not con
flict with section 4.
Mr. Patterson said he would move to 1
strike out those sections when he came <
to them and leave the appointment of I
all these minor offices to the legisla
ture.
The motion to indefinitely postpone
was lost-nays 69, yeas 53.
Mr. Patterson then withdrew tue
latter part of his substitute reading
"and also for a system of free public
schools throughout the State."
Mr. Patterson's substitute was adopt
ed by a vote of 73 to "no further
count demanded."
SECTION THREE.
When section 3 was called up, Mr.
Patterson offered the following sub
stitute, which was adopted:
Section 3. The salaries of the State
and county school officials and com
pensation of county treasurers for col-1
lecting and disbursing school moneys1
shall not be paid out of the school 1
funds, but shall be otherwise providedi
for by the general assembly.4
SECTION FOUR
was, after a brief discussion, passed
over for the present.
SECTION FIvE1
was taken up, reading as follows:
Section 5. The general assembly
shall provide for a liberal system of
free public schools for all children be
tween the ages of 6 and 21 years, not1
mentally disabled, and for the divis-i
ion of counties into school districts. ]
Mr. Ragsdale moved to strike out1
on lines 2 and 3 the words "not men
tally disabled."
Mr. Patterson thought the conven
tion was on section 6 and he sent up
a substitute which he withdrew.
Mr. Ragsdale amendment was adopt
ed.
Senator Tillman then offered to]
amend by inserting af ter the words
"school districts" on line 3, the words]
"as nearly square as practicable, not<
to exceed 49,nor be less than 16 square ]
miles in area; provided, that in cities]I
of 10,000 inhabitants and over the
limit shall not apply.
Senator Tillman spoke in favor~of 1
the amendment.1
There was further debate by Messrs.<
Rogers, Otts, Perritte, Smith, T. E.<
Johnson, Hamel and Woodward. 1
Mr. Breazeale then offered the fol
lowing amendment to the amendment.
Provided: That school districts may I
be established with a less area than 16<
square miles in which there is located
an incorporated city or town which i
has erected school buildings for free
school purposes by the issuance of t
bonds, or by taxation, or by donation
by citizens, thereof who may desire to I
do so.
The further consideration of section
5 was continued till the night session.
SECTION SiX.
This section, as reported, was then 1
taken up.
Mr. Mitchell, the chairman of the ]
committee, made a strong speech ex- -
plaining the features of the plan em
bodied In the section. He then, by I
permission, offered the section as e
amended by his committee, as follows:.
Sec. 6. The .existing county boards
:> commissioners of the several coun-(
ties; and the county school commis
sioner hereafter be vested with the
same or similar powers and duties, t
shall levy an annual tax of :3 mills ont
the dollar upon all taxable pronerty c
in their resp~ctive counties; which tax
shall be collected at thie same time andc
by the same ollicers as the other taxes e
For the same year and shall be held int
the county treasury of the respective g
:ounties and the county school com-t
missioner shall apportion the said1
Fund among the school districts of his
:ounty in proportion to the :eespective
aumber of pupils enrolled in the pub
lie schools and notify the trustees of 1
the respective school districts thereof,
who shall expend and disburse the
iame as the general assembly may di
rect.1
Three trustees for each school dis
trict shall be selected in such manner
and for sucht4erms as the general as
senmbly may determine.
There shall be assessed on all taxa
ble polls in the State between the ages
of 21 and 60 years an annual tax of $1<
on each poll, tihe proceeds of which ]
poses in the several school districts in
which it is collected. Whenever dur
ing the three next ensuing fiscal years
the tax levied by the said county board
of commissioners or similar officers
and the poll tax shall not yield an
amount equal to $3 per capita of the
number of children enrolled in the
public schools of each county for the
scholastic year ending October31,1895,
is it appears in the report of the state
uperintendent of education for said
cholastic year, the comptroller gen
,ral shall for the aforesaid three next
mnsung years on the first day of each
f said years levy such an annual tax
>n the taxable property of the State as
de may determine to be necessary to
21ake up such deficiency and appor
ion same among the counties of the
State in proportion to the respective
leficiencies therein; the sum so appor
ioned shall be paid by the State treas
aIrer tc the county treasurers of the
respective counties on the warrant of
,he c')mptroller general and shall be
ipportioned among the school districts
>f the counties and disbursed as other
;chool- funds.
And from and after the 31st day of
December, 1898, the general assembly
;hall cause to be levied annually on
l the taxable property of the State
uch a tax, in addition to the said tax
evied by the said county board of
bommlssioners, or similar officers and
>oll tax above provided, as may be
2ecessary to keep the school opens
broughout the State for such length
)f time in each scholastic year as the
reneral assembly may prescribe; and
aid tax shall be apportioned among
he counties in proportion to the defi
,iencies therein and disbursed as other
chool funds.
Any school district may, by the au
hority of the general assembly, levy
Ln additional tax for the support of its
chools.
THE CENTRALIZATION SCHEMB.
Section 6 of Mr. Kennedy's minori
y report was then taken up and was
Ls follows:
Section 6. The comptroller general
hall levy at each regular session after
he adption of this constitution an an
mual tax of 3 mills on the dollar on
dl taxable property throughout the
tate for the support of the public
chools, which tax shall be collected
t the same time and by the same
gents as the general State levy and
hall be paid into the State treasury.
[here shall also be assessed on all tax
Lble polls in this State between the
Lges of 21 and 60 years an annual tax
>f $1 on each pol, the proceeds of
which shall be applied solely to the
upport of the public schools. The
chool tax shall be distributed among
he several counties in this State in
>roportion to the respective number of
>upils enrolled in the public schools,
o be disbursed in the several school
listricts of said counties as may be
)rovided by the general assembly.
k.ny school district may, by the au
hority of the general assembly, levy
tn additional tax for the support of its
chools.
MR. PATTERSON'S PLAN.
Mr. Patterson announced that he
,vould offer the following sections as
t substitute for Mr. Kennedy's substi
ute:
Section 6. The existing county board
)f commissioners of the several coun
ies, or such officer or oifficers as may
iereafter be vested with the same or
imilar powers and duties shall levy
Ln annual tax of 3 mils on the dollar
ipon all the taxable property in their
-espective counties; which ta":~ahall
e collected at the same time and by
he same officers as the other~ taxes for
he same year,and shall be held in the
~ounty treasuries of the respective
~ounties to be apportioned among the
chool districts of the counties in pro
ortion to the respective number of
>upilk enrolled in the public schools
hereof.
Sec. 8. The general assembly shall
nake provision for the assessment and
ollection of an annual tax of $1 on
bach male inhabitant in the State be
ween the ages of 21 and 60 years who
s able to perform ordinary manual
abor, the proceeds of which tax shall
e expended for school purposes in the
everal school districts in which it is
~ollected, and the general assembly
hall define the penalties, fines and
orfeitures to be imposed for the non
>ayment of this tax.
Sec. S. In addition to the taxes here
nafter required to be levied and col
ected, the general assembly shall
nake provision for the levy and col
ection of an additional tax of 1 mill
)m the dollar on all of the taxable
>roperty of the State, which tax shall
>e levied, collected and paid into the
state treasury in the same manner as
tre other taxes, and which tax shall
e expended in public school educa
ion among the schools of the several
ounties of the State according to the
liscretion of the State board of control
mnder such regulations as the general
ssembly may prescribe.
Mr. Hutson-If you adopt that sys
em why don't you abolish the whole
ounty system and let this apply to
oads and bridges as well, and abolis'h
he office of county treasurer.
Mr. Kennedy- I have no objection
o that. It was the law upto 68.
Mr. Hutson-I think you have said
hat that system was a poor one.
Mr. Kennedy-As to schools, it was
very good one as to everything else.
t.re you going to have one rulc for
tigher edueation and another as to
>rimary?
Mr. Watson moved to table Mr.
~ennedy's substitute. Motion adopted
-yeas 90, nays 26.
Pending~ the consideration of Mr.
~atterson's substitute, the convention
*djourned.
THE DEBATE CoNTINUED.
COLUMBIm, Nov. 14.-Special: The
3onvention lost no time in resuming
ebate on the educational article.
Mr. Patterson's n.mendment to limit
he additional levy which the Legisla
ure should be authorized to make to
ne-half mill was adopted.
Mr. Patterson then spoke in favor
'f his substitute. Re reviewed the
ondition of the State's educational in
erests and demanded that she should
o forward and not backward. He said
here should be a fixed levy of three
aills for the common schools.
Heconcluded: "'I hope this con
ention will not go back on the peo
>le by refusing to give them a thiree
nill tax and this supplementary fund
.s well. The present system is a
tench in the nostrils of the State. If
ye do not increase this levy and raise
nore funds, I will be sorry for our
ieople.- They are not afraid of a raise.
hey are in favor of it, if it is necessa
'y. Let us go forward and provide
hat all profits from the penitentiary;
.il fines, forteits, escheats, etc., should
;o into the public school fund. If we
annot maintain our common schools
am willing to blot out the higher
choons. But T am wiling to mair.
tain them if we can. You have adopt
ed a pure educational qualification for
'98, and the people will expect you to
provide an edipeAn for our b
that they can vote." __ V
Mr. Henderson of Aiken opposed
Mr. Patterson's amendment. He
thought that the tax for the schools
should be put, in all respects, beyond
the reach of the Legislature.
MR. PATTERSON'S SUBSTITUTE KIL.
Mr. Ragsdale, with a view of expe
diting business, moved to indefinitely
postpone the Patterson substitute.
The motion prevailed.
Mr. Ragsdale brought up his amend
ment to strike out three mills and in
sert two mills. He proceeded to ad
dress the convention, saying that the
three-mill tax would ruin the graded
schools.
Mr. Patterson-Don't!3 on think it
will be best to let the graded schools go
then, for the benefit of all the people?
Mr. Ragsdale-I'm opposed to one
man putting his hand into another's
pocket either by authority of law or
otherwise.
Mr. Patton-Isn't the imposition of
the two-mill tax doing just that?
Mr. Ragsdale-It is to some extent.
Mr. Patton-Well, you are willing
to steal, but don't want to take as
much as the rest of us? (Laughter.)
Senator Watson asked him if he
thought the two-mill tax injured the
graded schools. He said he did not.
Mr. Ragsdale thought the whole
system of schools was revolutionary
even the appropriations for the col
leges. He was kept answering ques
tions for a quarter of an hour. Hethen
went on to say the convention could
give nothing that it did not take from
the people. The people had never
been given any intimation that the
constitutional school tax was to be in
creased. They would vote to increase
it. There was no use in bringing ir
revelent issues into the matter.
Mr. Barton moved to table, but with
drew the motion and Mr. Lowman
moved to amend the amendment by
substituting for Mr. Ragsdale's "2"
the words "not less than 2."
Mr. Watson of Edgefield made an
earnest and forcible speech in favor of
the immovable tai of three mills. He
ccncluded as follows: 'The governor
said: 'Put out no lights.' I want to
say, 'Kindle lights on every hilltop
and in every valley in South Carolina
that everybody may see them.'
BACK TO SECTION FIVE.
On motion of Senator Tfilman the
Convention recurred to section 5, in
order that he might propose an
amendment, relating to the school age
and the area and shape of school dis
tricts.
The amendment prevailed--yeas
76, nays 52.
At the night session, after some ver
bal changes, section five was regular
ly adopted in the following shap:
Sec. 5. The general assembly shall
provide for a liberal system of free
public schools for all children between
the ages of 6 and 21 years, and for the
division of the counties into school
districts as compact as possible, not to
exceed 49 nor to be less than 9 square
miles, provided that in cities of 10,000
inhabitants and over, these limitations
shall not apply.
THE THREE-MILL TAX.
Debate was then resumed on .
Ragsdale's amendment to red the
constitutional re by the
committee f~ mils to two.
Mr. T abefavored the two-mill tax
in ainost earnest speech.
"Men are liable to make cheap taxes
one of these campaign issues. It aught
not to be so fixed that any man can
undermine the system of education.
There is no telling who maycome here
in the future to legislate for you.
There are alway some pepewho
kick up Harry about antigyou do
and confuse matters perhp, and they
may mix up matters to a great extent.
The rich men often have control over
the poorer ones and may influence
them not to issue special'taxes. He
wanted to support 3 mills and would
support 4 if anybody offered it. He
was in the fight for the great masses.
For higher education there was appro
uriated $196,000, and *hen you go
back and tell them you have given the
poor people the pitiful sum of 2mills
they will justly protest against such a
condition."
He was questioned a little by Mr.
Ragsdale and he replied to each ques
tion.
Mr. Howell's time was extended for
10 minutes and he, continuing, said
that he wished to plead with the con
vention for the education of the
masses.
Mr. Gunter said as the only one on
the comamittee who opposed the three
mill tar, he felt it his duty to express
to the convention his reason. The peo
ple wer-e crying out under excessive
taxation. In his county they were in
favor of the two-mill tax if the white
people could get the benefit of it. Was
it right that the white people should
pay the tax to educate the negro? II
was not right. Cry after cry had been
raised against fraud, They should
put it at "not less- than two mills,"
and leave the rest to the people. The3
were proposing to put the liquor prof
its into this fund.
A SUBSTITUTE.
Mr. Ira B. Jones offered a substitute
requiring the General Assembly to au
thorize and direct the proper officers
of each county to levy the annual tax
of three mills for the support of the
common schools.
Mr. Jones spoke in favor of the
amendment.
.Senator Tillman spoke in opposi
tion.
Governor Evans resigning the chair
temporarily to Vice-President Jones,
spoke warmly and at length in favor
of the Jones amendment. He thought
a tax levy was strictly in the domain
of 1e ' ltion, and should be left to
the discretion of the Legislature.
Mr. Mitchell closed the debate on
the Jones amendment, making a
strong speech against it.
The vote was then taken on a mo
tion to table the Jones amendment.
Yeas S2, nays 41. So the amendment
leaving the school tax to the Legisla
ture, was killed.
Next came the motion to table Mr.
Ragsdale's amendment. Yeas 76, nays
47. So the proposition to put the con
stitutional tax at two mills was also
killed.
The Convention then adjourned.
THlE POLL T.AX.
COLDMBI, Nov. 15.-Special: The
Session of the Convention today was
consumed in discussing the poll tax,
First came the proposition to make
the tax two dollars. This was voted
down.
Then it was proposed to make the
figure $1.50. This too was defeated.
So the tax is to remain at one dollar.
Some discussion was also liad on
the age at which citizens should cease
to pay the tax. It was finally fixed at
sixty years.