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CITES WONDERFUL I IN THE ENDORSES THE DISPENSAF SEVERAL AMENDY The Finances of the State in -and Good Will Prevail Th ferent Departments of Numerous and Timel; As to Taxation-Clail Government-Goo Gentlemen of the General Assembly: During the past year the heavy har-d of affliction was laid upon the chief execu tive of the State and the people were called to mourn the death of their Gov ernor. After a long illness Governor William H. Ellerbe died at his home In 'Marion County on June 2. IS99. Young in years, full of honors, and commarding the respect of his countrymen he was gathered to his fathers. Holding the po sition of Lieutenant Governor, to which I had been elected, and obeying the Con stitution, I took the oath of office as Governor on the 3d day of June, 1S99, and immediately thereafter began the discharge of the duties pertaining thereto. Since you last met there has been very ..arked material progress in the State In almost every branch of industry. The husbandman has garnered the productf Of his fields with the assurance of goo2 turns for his labor. 31anufacturing en terprises have gone forward wvith almost _Miraculous rapidity and are furnishing lucrative employment for many of our people. There has been great activity in the building of railroads, the great de velopers of a country. Peace, happiness and prosperity prevail in every portion of the State. Factional bitterness and strife are things of the past and the poeple are -united for the upbuilding, progress and development of the entire State. Death has not thinned your ranks and you come together to deliberate and make laws for - the people under most auspicious circum stances. I trust that in all your delibera tions you may be guided by a single purpose-the welfare and happiness of the people whom you have the honor to represent. However you may differ, as differ you will, your combined wisdom and high patriotism, I am sure, will re sult in the passage of such laws as will redound to the good of all the people. In the accomplishment of this purpose I stand ready and anxious to aid you and co-operate with you in so far as my power and ability may go. EV-IDENCES OF~ PROGRESS. In cotton manufacturing South Caroli :na leads all of the Southern States and . stands second only to Massachusetts inj the number of spindles and second to none in equipment. If the progress of the past year augurs anything for the future we shall soon lead all others in this important industry and instead of furnishiug any of of our staple crop for . export to other places for manufacture we will be large importers of cotton from other States to supply the local demand. During the past year eleven new mills have been organized and are in process of construction, representing a total capital *of $3,275,ooo. Sixteen old mills have been enlarged, representing an increase - of their capital stock of $2,429,000. This not only means a large addition to the - wealth of the State and a-1 increase of the - taxable property, but it means wealth put into active service and employment for :many of our people. In railroad building, as I have already stated, there has been very decided ac tivity. 237 miles have been completed and in actual process of construction. This represents an outlay of least $25,000 a mile, or nearly $6,oooooo, and when completed and returned for taxation, even at a -aluation of $ro,ooo a mile will add $2,37o,'oo to the taxable property of the State. In cotton seed oil mills, the lumber business, and other branches of industry there has been very marked activity. For the exact figures in all of these new en terprises I beg to direct your attention to the full and exhaustive report of the Sec retary of State. A study of these figures and a realization of the material progress upon which the State has entered should bhe cause of sincere congratulation to every true Carolinian and should niove von as representatives of the people to do all that vou can to foster and encourage this prog ress and these institutions and industries which mean so much for our State. I have thought proper thus briefly to direct your attention to these substantial evi dences of progress and growth as an en couragemenit and an incentive to our peo ple to the accomplishment of even greater things which lie easily within our grasp if we will but put forth our hands and lay hold of the Uvantages andi opportunities that thickly surround us oni every side. FINANcEs. I take pleasure also in congratulating -ou on the condition of the :manlces or the State. The State Treasuter has been able to meet all of the obligations of the State promptly and also thle interest on AATERIAL PROGRESS STATE. Y SYSTEM AND SUGGESTS ENTS TO THE LAW. a Healthy Condition--Peace roughout the State--Dif the State Reviewed. y Suggestions Made. ms Against General d Roads--Read it. having to borrow any money or overdraw his account, and still has a balance in the Treasury. I give herewith a statement of the receipts and disbursements of the past year: L. -t z!: N C., V_. r. N e.Z C C C1 g 8 T T s r t Staa E t. been reprte asfnalbu0 hc n ~ ~7 - der the Act of 1893 are now no longer so, and among them are the bonds claimed by the State Bank (Blue Ridge Railroad bonds of 1S59) to the amount of $37,000. The Act of 1896 referred to prohibits the State Treasurer from funding or paying any bonds after the expiration of twenty years from the date of maturity. The bonds above mentioned matured on July Ist, 1S79, and the twenty years limitation exired on July 1st, 1899. These bonds, it may be recollected, have been the subject of several applica tions to the General Assembly for permis sion to fund them without the surrender of the bonds themselves. One hundred thousand dollars of these bonds were, it is alleged, plundered and taken from the Bank mn February, 1865, by the Federal troops in their march through the State. They have from that time been constantly claied by the flank, the receiver of which obtained an injunction from the courts as early as 1S70, restraining the Treasurer of ihe State from paying prim clal or interest of any of them to any one but to the receiver, and undfer that in j aution all of these bonds but t1ie thirty seven now remaining upon the Treasur er's books have from time to time been recovered by the receiver of the Bank, and by him funded. No one has during the thirty years since the injunction has been in force claimed the bonds in ques tion, and the Courts of the State have de clared that they are the property of the State Bank, and that the receiver of the Bank is the only person entitled to fund and collect them from the Treasurer of the State. The State owes these bonds to some one, and the objection which the General Assembly has hitherto had to the funding of them' has been, it is understood, the fear that some one might still produce and present them to the Treasurer, for funding under the funding Act of the State, and that the State might in this way have to pay them twice. This ob jection seems now removed, as no one but the receiver of the bank has the right to ask to have them funded, all other per sons being now barred by the statutes from apying to the Treasurer for that purpose. But however this may be, some action must now be taken in regard to them. They can no longer be carried on the books of the Treasurer as bonds fundable. It rests with the General Assembly to say what must be done in the matter. A short time ago I received a commu nication from the Secretary of the Treas rv at Washington calling my attention toa claim of the United States G~overn mnt against the State of South Carolina and an Act of Congress passed March 3d, S,requmiring him to institute such pro ceedings as he ight (ieein proper to col lect any bonds or stocks, principal and interest, which the General Government holds against this State before any claiis on the part of the State against the Gen eral Government should be paid. T his communication was brought forth on ac count of the claims put in by this State for reinibirsenent of expenses incurred in organizing volunteer troops for service in the war with Spain. I submitted the letter to the State Treasurer and asked him for a statement. I subnit herewith his statement and ask for this matter suci consideration and action as in your wis dom you may deem proper to take: "In pursuance of this prov sioin of law the Secretary of the Treasury of the United States has notified us that theGeneral Gov ernment holds certain State bonds to the amount of rI 25,000, principal; and interest tomaturity of $r23,75o, aggregating $248, 750, and requests paynent of the same. These bonds bear interest at six per cent. and were issued under Act of December 19, 1S55, for construction of new State House, issued January ist, iS56, redeem able January ist, iSS. By reference to the records of the State Treasurer's office it is noted that there was some corre spondence had between this office and the Treasury Department at Washington in November, 1881, and during the adminis tration of Governor Johnson Hagood, but without a settlement of the claim so far as we know. "Under the Act of the General Assem bly at that time of force these bonds, principal and interest unpaid to ist Jan uarv, iSSo, were fundable in six per cent. consolidation bonds at fifty per cent. of said amount. The consols being redeem able on ist of July, 1893. The Act of the Legislature of 22nd of December, 1893, provides that all bonds and stocks hith erto fundable ;n these consols upon their surrender be e.-changed for the new 20 4o years 4 ," per .ent. bonds and stocks authorized by Act of December, 1892, for the redemption of Brown Consols. These coupon bonds now held by the United States Government are fundable as above stated upon their surrender, i. e., at 50 per cent. of principal and interest up to maturity. The State, however, has Revolu tionary War claims to the amount in round numbers of $550,00o. In the in vestigation of this claim against the United States Government theGeneral As sembly in December, 1856, passed a reso lution authorizing the appointment of some suitable person to investigate and prosecute the State's claims as aforesaid, and under that authority Governor R. F. W. Allston appointed Hon. jas. A. Black agent for that work. The said agent in corporated the result of his labors in a re port to the General Assembly, which was ordered to be filed with Comptroller Gen eral, which cannot now be found among the records of his office. There is a large mass of old papers now in one of the rooms of the State House, among which this valuable report might be found if the means were in hand to employ an effi cient and painstaking person or persons to examine this confused mass of papers. There are, in all probability, other claims held by the State against the General Government, to say nothing of private claims of large amounts amounting to millions of dollars." This is a matter of very great impor tance to our State. At your last session you passed a joint resolution requesting and directing the Governor and State Treasurer to furnish all information avail able to our Senators and Representatives touching the claim of the State against the United States for money advanced during the War of 1812, and that our Representatives in Congress be requested to urge forward all legislation on the sub ject. You also rescinded all cutstanding contracts if any should exist for the col lection of this claim. It seems that the Black Report made in 1S5S and mentioned by the State Treasurer embraces all the testimony and facts relative to the State's claim. In view of the importance of this report I recommend that you provide for an examination of all the old records and especially the old rubbish that is stored away in one of the unoccupied rooms of the State Capitol to see if this report can be found. Its recovery may be the means of our getting a considerable sum of money from the United States Govern ment and it is important to put our Sena tors and Representatives in possession of all the facts that can be obtained. As I understand it, the claimi of the United States Government for the settlement of the $125,0oo of South Carolina bonds be longing to the Indian Trust Fund and the accumulated interest is a just and honest claim which we ought to pay and which we could pay with our claim against the United States Govern ment and have a balance to the credit of the State if we can find the testimony to substantiate the claim of the State. The matter was in process of settlement when the Civil War broke out in 186o, and the State had joined with other States in pro test against the unfair methods of the United States in adjusting the claimis ans. it was to sustain its contentions that Black was employed to .work up the State's case. It may not be possible to obtain the full amount claimed by the State, but I am informed that there is ab solute proof in official documents that the United States acknowledged that it owed the State of South Carolina in 1831 7,ooo and this with accumulated inter est for fifty-nine years would amount to about $350.000- If this could be adjusted without going into the disputed claims the State could pay the claim the United States Government holds against it and have about $1roo0o left. Under the con solidation Act of 1873 the State Treasurer can only refund old bonds at fifty cents on the diollar, but if a settlement as sug gested could be made with the United States Government yoti might pass an Act authorizing the State Treasurer to settle at roo cents on the dollar on condition that the United States pay the just claims to the State of South Carolina as acknowledged in the report of the Sec retary of the Treasury in 1858. For a statement of the bonded debt of the State your attention is directed to the annual report of the State Treasurer. Our bonds find a readv- sale in the markets of the world at a premium and the credit of the State is good. TAXATION. The Constitution savs that "All taxes upon property, real and'personal, shall be laid upon the actual value of the property taxed, as the same shall lbe ascertained by an assessment niade for the purpose of laying such tax." It also says the " Gen eral Assenmbly shall provide by' law for a uniform and equal rate of assessment bor taxation.'' It is a fact that very little if any property is assessed for taxation at its "actual value," For if it wvere the taxa ble property of the State would be a greamt deal more than it is and the rate of taxa tiou could be considerablv reduncesi. To the taxpayer, however, that is not a mat ter of very great concern, :or a certain amount of money has to be raised to meet the valuation were high the rate could be re(uced, vet in the end it amounts to the sane thing. The question that concerns the taxpayer is to have a uniform value of assessment whether it be the actrial value or one-half the actual value. The burden of taxation would then fall equally on all the taxpayers in proportion to the property they own, but if one nian's prop ertv is assessed at its actual value and auother man's at one-half its actual value the one either contributes more than his share to the support of the government or the other does not m-asure up to his duty in this matter. The miaiin desideratum is to secure such a mode of assessient as will give a uniform valuation to all prop ertv subject to taxation. That such re sults are not obtained now I am sure. Whether it is the fault of the law or its administration I am not prepared to say. We have township boards of assessors and county boards of equalization, but the manner in which they as a rule discharge their dutiesand the time they allot to the discharge of these duties does not secure a uniform valuation of property for the purposes of taxation. Nor indeed could they do it under the present plan if they gave more time to it. They may secure an approximate uniformity for valuation in each county, and so far as county pur poses are concerned that might suffice, ut the average in the countieb varies and the burden of State taxation does not fall equally on the several counties. I have no fully matured plan to submit for your consideration as a remedy for this evil, but I am persuaded that if some plan could be devised by which the Constitu tion could be obeyed and all property as sessed at its actual value the burden would bear more easily and equitably upon all taxpayers. As the law now stands the County Auditor is required to go into each township and take returns of prop erty and then the township boards meet and go over these returns and then they are gone over by the county boards of equalization. I submit for your consid eration the advisability of requiring that the Constitution be carried out and all property assessed at its actual value and that the County Auditor take returns only in the townships and that the township boards be required to attend while these returns are being made and if any ques on arises as to the valuation of the property it could be settled by the Auditor. the board of assessors and the owner of the property. These township boards should be men of ability and character and should be in position to determine the actual value of the property. I believe that some such plan if properly carried out would materially increase the taxable property of the State and go far towards equalizing the burden of taxation. There is need for something to be done along this lile. There is also some complaint of the ir regularity in which some County Treas urers remit taxes collected by them to the State Treasurer. The law fixe? the times at which they shall remit bit many of them do not observe it. I think it would be advisable to place them on salary the same as County Auditors and require monthly statements from them and with hold tleir salary until the statements were received And also require them to submit with their monthly statement a statement from the bank of deposit show ing the amount of money to their credit as Treasurer. And penalty should be provided for the failure to turn over funds and make reports as required by law and power given the Governor to suspend or remove such as persistently refuse or neglect to obey the law. This subject of taxation is one that more directly concerns the people than any other with which you will have to deal and it deserves your most earnest consideration and in whatever you do you should endeavor to make the burden bear equally upon all the property of the State. Bly comparison of the figures in the Conmptroller General's reports you will see that the taxable property for the fis cal year commencing January r, 1899, is $3,iS5,1S3 more than for the preceding fiscal year. Total taxable property for the fiscal year commencing Jan" uary ist, 1899.............3176,422,2SS Total taxable property for the fiscal year commencing Jan uary Ist, 1S98............... 173,237,105 Increase...-- ---- 3,1S5,1S3 &INKING FUND. I beg to direct your attention to the re port of the Commoissioners of the Sinking Fund from which it appears that the Cu mulative Phosphate Sinking Fund now amounts to $347,731.38. This shows an increase of these assets of $51,125-94 since the report of last year. Of this amount $17,746.65 is derived from interest and $39,379.2S is derived from phosphate royalty during the year. The assets of this fund consist of the following: State stocks..............--.$ 35,72S.56 Bank loan secured by State Bonds.......... ......2000000o Loans to Counties.... ........ 113,0S4-33 Interest bearinmg deposits in Banks....................... 17,9i8.49 Total... .....................347,731-3S The assests of thme Ordinary Sink mg Fund amount to $43,330.64 of which $30,200.00 is loaned to counties and $13,. 130.64 deposited in hanks. This shows a decase of this fund of $2,143.42 since the last report. This is covered by the purchase of escheated lands which have since beeii sold at a profit butthe terms of sale have not yet been fully complied with by the purchaser. The report gives full details of the work of the Conimis sioners for the year and I invite your careful attention to it and the recommen dations contained therein. PENSIONS. A generat ion has passed since the War Between the States. The Southern sol diers who fought for a cause they believed to be right laid their all upon the altar of their country. Greater sacrifice and self denial were'never more cheerfully made in any cause or in any country thaii in this struggle by the Southern soldier. They displayed a fortitude amid a heroism that will furnish themes for the poet and the historian for all time to comec. They lost in battle because of overwhelming nunibers and resonrces on the other side, and( without repining laid down their arms and~ returned to their homes and began with a spirit of cheerfulness rarely seen to rebuild their lost fortunes. Many of themn have passed to the o'ther shore and now rest under the shade of thme trees, amid every year the ranks grow less. It is our sacred duty to hioiior their memory and defenmd their- good name. Not or. ly so, it is our duity to take care of and pr(eideC for thos who are in need of our help. This we can; do without tile slig;hest semblance of dislovahv to the~ Union. There is no longerimm any'ntanis between the sec ions. The Southern soldier will defenmd the- Un'o'- as cheerfully now as any citi zen T his was demonstrated in the war I each other in battle fought shoulder to shoulder for the flag. What we are able to give is but a pit tance, but it helps and we should give it cheerfully. Last year You appropri:ated for pensions to Confederate soldiers and widows of soldiers the sum of S;oo~oo. I recommend a like appropriation this year. It is important that this appropriation shouldi be expended and distributed wise lv an(d in such a manner as to meet the intention of the appropriation. The se lection of good, competent, and conscien tious township and county boards, men who know the conditions and are ac quainted with the needs of the applicants, is of very great importance. It is difficult to get men to work without pay, and while in this case it seems that good men might be found who would be willing to serve without compensation, I suggest that vou consider the wisdom and advisa bility of allowing the members of the county and township boards one dollar per day for not exceeding two days for this service. As you will see from the report of the Comptroller General, there were on the pension roll the past year 7,158 pension ers. Of this number 2,910 are widows of soldiers. The total amount disbursed in pensions was $9S,675.So. The widows were paid $38,412 and the soldiers $60, 363.So. DIRECT TAX. Under the provisions of the Act of Con gress August 5, 86r, a direct tax was im posed upon the citizens of the United States, and a part of it was apportioned to and assessed upon the State of South Car olina. Direct Tax Commissioners were appointed to demonstrate this law, but at that time no part of the State of South Carolina was under Federal control. In November, i86r, the whole of the parish of St. Helena, and all of that portion of St. Luke's, which was composed of is lands, fell into the hands of Federal forces, and the Direct Tax Commission ers established themselves at that point, and under the administration of the law all of the property belonging to the citi zens of those two parishes was sold and bought by the United States, and resold under the provisions of that Act, and of other Acts amendatorv thereto, and these citizens were entirely divested of their properties. Laterupon the determination of the war a portion of the direct tax as sessed to the State of South Carolina was collected in Charleston and in some other lower counties of the State. The pro ceeds arising from the sale of the lands in Beaufort went into the Treasurv of the United States under the different laws re lating thereto, and have been disposed of by the United States Government in ac cordance with those laws. A number of school farms, consisting each of i6o acres, carved out of the plan tations entirely in St. Helena parish, were reserved from the early sales, and leased by the Government, and rents collected aid separately kept, and at the close of the war the Government foune itself in possession of these school farms, of a num ber of houses and lots in the town of Beau fort, and a number of lots in what was then known as Port Royal City,.a mythi cal city sought to be laid out and estab lished by the Direct Tax Commissioners, and which, though thoroughly laid out and projected, failed to become a city, and is now a part of three plantations in St. Helena parish. By special enactment (Act of Congress, July 16, 1966) it was directed that these school farms, houses and lots in Beaufort, and lots in the city of Port Royal on St. Helena Island, should be scld and the proceeds invested in bonds of the United States, and the interest used under direc tion of the Secretary of the Treasury in the support of schools, without distinc tion of color or race, on the islands in the parishes of St. Helena and St. Luke's, and by subsequent Act of Congress, ap proved March 3, 1S73, it was directed that in addition to these funds the rents de rived from the lots of school farm lands should be likewise invested in such bonds of the United States, and all of these bonds retained by the Secretary of the Treasury as a fund for the use and sup 'port of free public schools in the parishes of St. Helena and St. Luke's, South Car olina, in equal parts, the interest of svhich should be annually expended to increase the effici-ncy of any free public schools established and sustained in said parishes by authority of said State, if such school shall exist,otherwise at the discre tion of the commissioners herein named, and a special board of three commission ers, directed to be appointed by the Secre tary of the Treasury, removable at his pleasure, each to receive a salary of Stoo per year for his services in administering this fund. The Act concludes with the following statement: "This Act shall be subject to amendment or repeal at the pleasure of Congress." From the proceeds of sales directed by these Acts of property formerly belonging to citizens of Beaufort County there was realized a sum of money in the neighbor hood of S53,o00, which money, in obedi ence to these Acts, has been invested in bonds of the United States, and these bonds are now in the Treasury of the United States, and the interest, though a mere pittance, after the payment of the salaries of three commissioners, is added to the school fund for Beiafort County, and continues to be so applied to this day. An Act of Congress approved March 2, 1S91, was passed to refund the money col lected by the United States under Direct Tax Act's, and a provision was made in the 4th section of that Act to make sonme partial compensation to the citizens of Bleaufort for the loss of their lands and the actual direct tax, with the penalty and interest, has been refunded to the citizens of this State, and the citizens of Rleaufort have received from the Secretary of the Treasury the gratuity which was given to them on account of their land, but this fund, the immediate proceedls of lands of former citizens of Beaufort County, still remains in the Treasury of the United States undisposed of, and is still withheld from them, though the Supreme Court of the United States M3ckee vs. U. 5., 164 U. S. Reports. 291 1 has declared tha.t "a perusal of tile entire Aet M'3arch 2,181 shows that its purpose was to pay~ back to the States, and to? individutal citi zens of the States the amrounts~ of mloney received fromx them in the course of th execution of tihe Direct rTax Acts of 1561, and Acts amnendatorv thereto. Tis'n f'ud could not hec 'aid bacek for lack of legisla tion, inasmuch as the effect of the Act of 31arch 1.5, i18;, has been to confeLr it into bonds. and unpound it in the Treasury "subject to th leasulre of Congress.'" It seems to be some~what of an a~lnmaly that tihe Governent of lhe Ui::ted States should feel itl in etd in the free schlsIi of two of' the paishes of th is State, all nd shold go to 'the eet of withhold ing andl using mon"r'y wich molrally be longs to the citizn ofBeaufort Coty~t to obtain the funds wher*ewith to doi it, and it has also seemed to me that it was the Carolina under its Constitution to provite for all of its free schools, and this it has done withoiut making any exception in respiec to the schools in these two fortmer narishes, :mld the conduct of the Govern inent of the United States in this regard would seei to be somewhat of an invasion of the constitutional rights of the State, as well as an injustice to those citizens, the proceeis of whose lands are thus withheld and perverted. I have, therefore, requested a member of Congress to introduce a bill to repeal the provisious of the Act of March 15, iS73, to provide for the sale of those bonds.l, the proceeeds to the persons from the sale or leasing of whose lands they originated, and such action, taken at my request, at the suggestion of parties inter ested, is now pending before Congress. When this matter is concluded the whole subject of direct tax may be said to be ended. Penal and Charitable Institutions. The Constitution of the State imposes upon us the duty 6f caring for the insane, blind, deaf, and dumb, and the poor, and says that institutions for this purpose shall be fostered and supported. STATE HOSPITAL FOR THE INSANE. While we all deplore the fact that we should have amongst us those who are mentally afflicted, we should not only consider it a dutv but we should esteem it a pleasure to care for them. I desire to call your special attention to the full and complete report of your efficient Superin tendent of the State Hospital for the In sane, Dr. J. W. Babcock, and to ask for it your careful consideration. It is a sad fact that the population at this institution is gradually and constantly increasing, the average daily population being one thous and. The total number being cared for at this time is 1,002, an increase over last year of 36. Of this number 599 are white and 407 colored. The number admitted during the year closing December 31 was 415. The discharges were 397. In the report of the Eoard of Regents to me it is stated: "The steady growth of the insti tution in the last twenty-five years has imposed burdens upon us beyond the ex pectations of our predecessors. The num ber of colored insane will in a few years exceed the white. While the races have always occupied separate buildings or wards, vet we cannot but anticipate the time when a wider separation than now exists will be deemed necessary. In dealing with her charitable iustitutions as with other vital questions, no progressive commonwealth should be satisfied with temporary makeshifts. These subjects demand not only consideration for to-day but also provision for to-morrow. We must adjust our present plans to meet so far as possible future needs." All these matters and the improvements deemed necessary are carefully and minutely dis cussed in the report of the Superintend ent. The Board of Regents desires to sug gest for your consideration the better de velopment-of the system of county poor houses and the consideration of the mat ter of "settlement," by which it would be better established who may claim bene ficiary support in the State Hospital. Our law should also be more specific in deal ing with inebriates and the criminal in sane. During the prevalence of an epi demic disease it is also recommended that for the protection of the patients in the Hospital the right of quarantine against the infected territory be entrusted to the Governor, the Chairman of the State Board of Health, and the President of the Regents. The growth of the institution has been so great that the necessary repairs from ordinarv wear and tear have become a considerable drain upon the maintenance fund. The Board estimates that in order to keep up these repairs and make some of the improvements recommended will require about $ro,ooo. A n itemized state mient will be found in the Superintend ent's report. The Board estimates that it will need for this year appropriations as follows: For maintenance...............$too, coo For debt on Wallace property and interest......................... 4,360 For permanent improvements... xo,ooo For Regents..................... 1,200 The institution is efficiently managed [and the appropriation is as economically expended as is possible with a wise con duct of the affairs. I commend to your favorable consideration the suggestions of the Superintendent and Board of Regents. SOUTH cAROLINA INSTITUTION FOR THE EDUCATION OF THE. DEAF AND THE BLIND. The annual report of this institution for the year closing December 31, IS99, shows an enrolment of 186 pupils, representing thirtv-seven counties. As an evidence of the economical manner in which the in stitution is managed the average cost in twentv-four schools in which this school was included was $222 per pupil as againist $132 for this school, But the school has grown beyond the accommodations which it has to offer. The Superintendent in a report to me says: "The time has come in the history of the institution when it will be necessary to limit the number of pupils admitted or to arrange for the accomnmo dation of a greater number." At a meet ing of the Board the following action was taken: "On motion of Mr. D. 1E Con verse the Superintendent was instructed to ask the Legislature in next annual re port for an appropriation of $2o.ooo for the erection and equipmlent of a school build ing. Also to renew request for appropria tion of $r o.ooo for building for department of colored pupils."~ The following appro priatins are dIeemed necessary for the prop~er maintenance and equipmient of the institution for the ensuing fiscal year: For suppor t.......................20,000 For general rep tirs................. Soo For school building..............20,000 For building for colored piupi's... io oo Superintendent Walker and his efficienit corps of instructors are performiing a labor of love and doing an excellent work at this institution. Thte care andi education of these unfortuniate childreni of the State shouldI enlist your symipathy and comn mua::d yuir thoughtful consideration. I'EN ITE NTI ARy. A t v-our List session a resolution was adopted ordering an investigation into the affairs of the State P'enitenitiary. That investigation was had and a report of the committee was stubmitted to m:e as direct ed by the resolution. I have stumitted in a'separate message the actioni taken by mec on this report and beg to direct your attention to it and also to the report of the- suecial comittee. That comnmittee per.. 'rmed~ te 'uties laid tupon ti: cliccent-j !v and well as you will see from an exam iin of th:eir wo'rk. The pre'::L. Superi:tnndent of the Pe:: itentiary.. Capt. D. J.- Grith, took charge on the 1 5th of March. An exanuination of his report will show that the affairs of verv satisfactory manner and the finances of the institution are in a very healty con dition. lie found it necessary to do much reT)Airing on the buildings at the institu tion arid on the farm and there is much more work that is necessary to be done. When he took charge there was turned over to him by his predecessor $114-35 inl cash and lie found it necessary to commence buying provisions to support the inmates at once and fronI March 15th to the har vesting of the new corn crop he was coni pelled to buy 3,38S bushels of corn and meal. It does not appear to me to be good business judgment, with the farmxs that are worked by the State, to be forced to buvs so large a quan tity of corn and meal when they could and ought to to made on the farms. I am glad to be able to state that the Su perintendent thinks his supply of corn made during the past year will be suffi cient to supply the institution during this year until the new crop comes in. There was also a large crop of oats made, some thing over 4,ooo bushels having been sold. The Superintendent says: "The year ag riculturally has been satisfactory, consid ering the late start and other disadvant ages under which the work was done." The cotton crop will amount to nearly six hundred bales. There has been no serious sickness amongst the prisoners except a few cases of miningitis, from which there were sev eral deaths. The Superintendent informs me that there are several prisoners who are suffering from consumption and close .confinement only aggravates the disease. I have thought it would be wise and hu mane to secur. a report from the physi cian of such cases and have them turned out, or placed in a separate building re mote from other convicts, for their punishment was not intended to be a slow death. There have been only 15 escapes under the present man agement and 12 of these were from stock ades of private parties who have convicts leased. I understand that the Board of Directors have been making contracts for the lease of convicts when there was not a sufficient number to fill existing contracts. I do no' consider this good business judgment. Neither do I think it wise to make contracts for a long term of years, for conditions might arise which would not leave a sufficient number to work the State's property. I ask a care ful consideration of these contracts. -These suggestions are made only in the interest of the efficient management of the institu tion and not with a view of criticism. There has been a slight total increase of convicts during the past year, as the fol lowing statement will show: CoNVICT STATEMENT. Prisoners in confinement De cember 3I, 1898................... 784 From courts since that date. .... 272 Recaptured.......................... 17- 289 1,073 Discharged............................ 199 Pardoned ...... ....................... 16 Escaped ............................... 15 Accidently killed................... I Died..................... 4I- 272 In prison December 31, 1899.... Sol A summary of expenditures and re-. ceipts during the past year shows a net cash balance on hand of $9,886.67. Balance cash on hand Dec. 3I,',S$ 4,804.44 Total receipts for the year....... 63,5S.23 $68,322.67 Total expenditures for the year. 58,436.oo Cash balance December 3I, '99.$ 9,886.67 In addition to the above receipts the following amounts were collected and be long properly to the earnings of 1899. Jan. 3- Collected from contrac tors......................... $ 43 r,60 Collected from J. M. Graham,Hosiery Mill, October, 1899, hire... 2,182.29 $2,613.89 In this statement the provisions and supplies made on the farms to be used in the maintenance of the institution are not included. This, it appears to me, is a good showing and demonstrates good business management. It seems to me it would be wise for the Superintendent to keep on hand a sufficient amount of this money to meet current expenses and to pay the cash for what he is compelled to buy, for by so doing he can run the in stitution much more economically, and thus in the end be able to save money for the State. I commend to your careful consideration the report of the Superin tendent and Board of Directors. EDUCATION. Along with the material progress that has come to our State there has been a lively interest in the education of our vouth. Not only has this been manifest in our higher institutions of learning but the country schools and the primary schools throughout the State have been greatly improved. In almost every incor porated'town and many of the country districts the three mill constitutional tar has been supplemented and the schools are kept open for the full school year. The teachers are educated Christian men and Women who have gone out from our col leges and training schools fully equipped for their work. In a government like ours the education of our youth is of para mount importance. Any legislation that will foster and encourage our common scho'>1s should receive your hearty ap proval and endorsement, for you may fos ter and build colleges as you please, the fact remains that a vast majority of our children can never avail themselves of a collegiate training. If the means are available it is within the range of possi biity for all of them to obtain a common school education, and thus be equipped for the proper discharge of the duties of citizenship. Intelligent citizens make intelligent voters. Educated mothers rear intelligent citizens. When you put money in education you invest capital that will give you ever increasing return and can neither be lost nor squandered. To secure effciency in our common schools three things are of paramount importance: First, you must have the means with which t'o operate them. Second. you must have educated and consecrated teachers. Third, you want intelligent and efficient County Superintendents of Education. Unfortunately with the money which the State is able to expend for common school education the average length of the terms of the public schools where the public school tax is not supplemented is only from three to four months. It is impossible to secure that ediciency andl thoroughness which we should have unless the schools could run longer. The teachers as a rule, are effcient and competent and their pay is far too small for the work they render. I fear that the parents too often feel when thy have paid thzir tax that they have shiftedi the responsibility for the educa tion of their children fromn their shoulders to the State. If the parents could be made to realize the Importance of this