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GOV. McSWEEN CITES WONDERFUL t IN THE ENDORSES THE DISPENSAF ?wTTnr> AT A Turrvmur SiiViifiAL. A ill r, in urn The Finances of the State in and Good Will Prevail Th ferent Departments of Numerous and Timel As to Taxation?Clai Government?Goc Gentlemen of the General Assembly: During the past year the heavy hand of I affliction was laid upon the chief executive of the State and the people were called to mourn the death of their Governor. After a long illness Governor William H. Ellerbe died at his home in Marion County on June 2, 1S99. Young in years, full of honors, and commanding the respect of his countrymen he was gathered to his fathers. Holding the position of Lieutenant Governor, to which I had been elected, and obeying the Constitution, 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 marked material progress in the State in almost every branch of industry. The husbandman has garnered the products of his fields with the assurance of good returns for his labor. Manufacturing enterprises have gone forward with almost miraculous rapidity and are furnishing lucrative employment for many of cur 1 * - - 1 ?oMivitv in I people, to ere n as occu &?*;?? ? the building of railroads, the great developers of a country. Peace, happiness and prosperity prevail in every portion of the State. Factional bitterness and strife axe 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 3-cu come together to deliberate and make laws for the people under most auspicious circumstances. I trust that in all your deliberations 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 result in the passage of such laws as will redound to the good of all the people. In the accomplishment of thjs purpose I stand ready and anxious to aid you and . co-operate with you in so far as my power . and ability may go. evidences of progress, 'in cotton manufacturing South Caroli- ! ma leads all of the Southern States and ; stands second only to Massachusetts in 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 -- - . . ? j :?nfl this important industry auu msicau w : furnishing 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 Ihave been organized and are in process of (Construction, representing a total capital l3^75??oo- Sixteen old mills have Ibeen enlarged, representing an increase <of their capital ^tock of <2,429,000. This mot only means <2. large addition to the -.wealth of.the State and an increase of the 'taxable ^property, but it means wealth put :into;active sen-ice and employment for many of our people. Jn railroad building, as I have already -Stated, there has been very decided activity. 237 miles have been completed and in actual process of construction. '.This represents an outlay of least <25,000 ra mile, or nearly ?6,000,000, and when -completed and returned for taxation, even avaluation of ?10,000 a mile will -.-add ?2^370,000 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 enterprises I beg to direct your attention to the full and exhaustive report of the Secretary of State. A study of these figures and a realization of the material progress nr>on which the State has entered should be cause of sincere congratulation to every true Carolinian and should move you as representatives of the people to do all that you can to foster and encourage this progress 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 denres of progress and growth as an en court gement and an incentive to our people 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 advantages and opportunities that thickly surround us on every side. FINANCES. I take pleasure also in congratulating you on the condition of the finances of the State. The State Treasuter has been able to meet all of the obligations of the State promptly and also the interest on the public debt without the necessity of Supplem ETC MESSAGE. < MATERIAL PROGRESS i STATE, j < iY SYSTEM AND SUGGESTS j ENTS TO THE LAW. f ( t a Healthy Condition?Peace i iroughout the State?Dif- 1 the State Keviewea. ; y Suggestions Made. ! ms Against General ! )& Roads?Read it. . i having to borrow any money or overdraw < his account, and still has a balance in the Treasury. I give herewith a statement of 1 the receipts and disbursements of the past ] year: i r8 5SU?SS8:r*U83. ^^8 8^5 8 & \ 1^5 S\3 *8$ 8 2ZZZ g . n C - OO rroc - <?. ? 5 qw >n tN o , 5 S>2 nr?m? ? f >? n m to rr, v "* ~ P) j ! ~ 1 a iTTTTTTTTTTTT ; g I:::::::::::: 51S:::::: t *=*:::::: ; s : -? ? 1 u * * i i 0 ::::::: < 1 : : Mil:::: : :::::::: : ; I M m n mibNni|iI! ! a ::::s ::::::: S ::::::::: c : o o j 1 1 n; u '2 : :i|: :: i ::: :8 :S : :?? : : i ' ? < ; :g ::: :1 : -SS :8 i S l-: : :J ^ I -1 ? " : : :? - = = : ! = ? :-i = =5 : :? i S. ? : : :? :%Z% : :?=-gg|a.?so : : = "J -j : : ' o - SZi*3 : 5 - - u : 2 1 i : : i ;5 ? E =*?8 :^ = 2^|u2^^|5 : ? ! sSiv.!! 11643-555^:;! ; 2 g-jsssiliss?||s!Sls*i{,? :f? < |5**:gg J 3Sggls-;o*?iI 2?si=| 1 *gS?=8s?s???* ] 3SoeS,535?2*5* 3xZ?2'5 | r>c ? ?>? <? ar- oo ? O K>?r r ?\VP! S? 1 I lOCsr-O X O NO O ?w -, ? \2??.% % ?&? J i$s!? J ?jp?*5l5pN|? g||2 ! i* 1 l~ T !* ] ci : : : : Sj?3 * : : : : : : j ( S : : : :?$ S? ::::::::: : : :|? : . mm . . . . - N % . ? in 1 ?, :::: S J ? ... .m ?A m _ ?? ?;? ? ^ : i i i : i : M : : : : : r: i : : : ] E ::::-:::::::::S:::::::: : 8 :: i : ::::::::: :o : , 0 a ; ? ir;iiirirriir*?s !? " * a :c ;S : ? :o i c ? s ; o . ? :::o ? -5 : - - 1 ? u ? ? o c : : .? -9 z.x : ( u i i 2 \ \ \ U : : : : $ '? : --?2 i |r .. .a? >? ?> -?R i> -p, u ; 2 a----*-- ? t"0, 5 . t >. :g . -a . -s -S :; ;s2 : a : : = J : : : 5i : : ? : : g : "2 : : : 3 ? ^ . :s?,? teti-s-o ^-ta ? ; ; :<r'l2 1 as _,<-' ; w ec?5 c 'S^c s : k-,'jj . - J .?2so oiE-g -a?" 1 c . . .sLoSflL -"s.-r :n o o :=fJ ? ? rxU 0 z:? ^ \ c : : :i2j;.u3o J: = ^ ? o go l> ? >*j o-gs. o .-"g 'oS"2 5 a?'3 t a :v :5i-a2u-0 -^sSo0; < a -? u?"-,S5 ??? : .v?u ? . o ? ?7 oj*-* o jc *>,a"C o ' o "V J* ? 1? ^ 1 a a fc"0 :iaS = <?' ? ?T * <3 :S--3?S?-35***2 g :asKo # :?-2S553 3-SSgas?^ ::*?s^s x~?? = a** g.S^^ 8 jeSltil ? ! a ir.5= H = c t iriiii v u t> 2x11 ?H S laa-a \ I S=-=^S o oocaiii ?| 8 ? 1 x3?s0uSSx?QQay**fcac-5Saau c The Treasurer of the State has called t my attention to the fact that there are a t number of old bonds which have hitherto ? been reported as fundable, but which un- x der the Act of 1893 are now no longer so, ? and among them are the bonds claimed t by the State Bank (Blue Ridge Railroad j bonds of 1S59) to the amount of $37,000. ? The Act of 1896 referred to prohibits the c State Treasurer from funding or paying ^ any bonus after the expiration of tweuty & years from the date of maturity. The t bonds above mentioned matured on July t 1 st, 1879, and the twenty years limitation s expired on July 1st, 1899. r These bonds, it may be recollected, t have been the subject of several applica- c 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 j is alleged, plundered and taken from the c Bank in February, 1865, by the Federal ? troops in their march through the State, c They have from that time been constantly g claimed by the Bank, the receiver of j which obtained an injunction from the t courts as early as 1870, restraining the < Treasurer of the State from paying prin- * cipal or interest of any of them to any one a but to the receiver, and under that-in- ^ junction all of these bonds but the .hirty- c seven now remaining upon the Treasur- c er's books have from time to time been j recovered by the receiver of the Bank, fi and by him funded. No-one has during ^ the thirty years since the injunction has c been in force claimed the bonds in question, and the Courts of the State have de- t clared that they are the property of the ) State Bank, and that the receiver of the g Bank is the only person entitled to fund c and collect them from the Treasurer of ; the State. a The State owes these bonds to some r one, and the objection which the General Assembly has hitherto had to the funding t of them has been, it is understood, the a fear that some one might still produce ^ and present them to the Treasurer, for t funding under the funding Act of the t State, and that the State might in this way have to pay them twice. This objection seems now removed, as no one but the receiver of the bank has the right to l' ask to have them funded, all other per- 1 sons being now barred by the statutes from t applying tc the Treasurer for that purpose. a But however this may be, some action * must now be taken in regard to them. e They can no longer be carried on the v books of the Treasurer as bonds fundable. * It rests with the General Assembly to say a what must be done in the matter.' A short time ago I received a commu- \ nication from the Secretary of the Treas- c ury at Washington calling my attention * to a claim of the United States Govern- 1 ment against the State of South Carolina t and an Act of Congress passed March 3d, a 1S99, requiring him to institute such pro- * ent to 1 :eedings as lie might deem proper to col- i ect any bonds or stocks, principal and 3 nterest, which the General Government < lolds against this State before any claims 1 >n the part of the State against the Gen- < iral Government should be paid. This < :ommunication was brought forth 011 ac- 1 :ount of the claims put in by this State < ror reimbursement of expenses incurred ] n organizing volunteer troops for service < n the war with Spain. I submitted the ; U4A'v*' 4^ Traocnrar acl'Prl 4 iCllCi LU LUC ULdlC iiv.aoui^.1 auu U^CV\.V4 aim for a statement. 1 submit herewith ais statement and ask for this matter such :ousideration and action as in your wislom you may deem proper to take: "In pursuance of this provision of law the Secretary of the Treasury of the United States has notified us that theGeneral Government holds certain State bonds to the imouutof$i25,ooo, principal; and interest :o maturity of <123,750, aggregating ?248,750, and requests payment of the same. These bonds bear interest at six per cent, and were issued under Act of December 19, 1855, for construction of new State House, issued January 1st, 1S56, redeemable January 1st, 1S81. By reference to ] :he records of the State Treasurer's office 1 it is noted that there was some corre- j ;pondence had between this office and the Treasury Department at Washington in j November, 18S1, and during the adminis- 1 iration of Governor Johnson Hagood, but I ft-ithout a settlement of the claim so far 1 is we know. < "Under the Act of the General Assem- 1 aly at that time of force these bonds, ( principal and interest unpaid to istjan- 1 nary, 1880, were fundable in six per cent. ( :onsolidation bonds at fifty per cent, of 1 >aid amount. The consols being redeem- < able on 1st of July, 1893. The Act of the 1 Legislature of 22nd of December, 1893, 1 provides that all bonds and stocks hith- 1 erto fundable in these consols upon their < surrender be exchanged for the new 20- , 40 years 4 per cent, bonds and stocks ; authorized by Act of December, 1S92, for ; the redemption of Brown Consols. These , coupon bonds now held by the United ( Z + On,.?rnmont arp flinHflVllp flS above 1 jiai^o vjv>wiuijuvub ?**v. ? ? stated upon their surrender, i. e., at 50 ] per cent, of principal and interest up to maturity. The State, however, has Revolutionary War claims to the amount in round numbers of ?550,000. In the investigation of this claim against the United States g overnment theGeneral Assembly in December, 1S56, passed a resolution 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 incorporated the result of his labors in a report to the General Assembly, which was ordered to be filed with Comptroller General, 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 efficient and painstaking person or persons to examine this confused mass of papers. There are, in all probability, other claims tield by the State against the General Sovernment, to say nothing of private claims of large amounts amounting to millions of dollars." This is a matter of very great impor:ance to our State. At your last session you passed a joint resolution requesting ? ind directing the Governor and State j Treasurer to furnish all information avail- t ible to our Senators and Representatives 1 :ouching the claim of the State against s :he United States for money advanced 1 luring the War of 1812, and that our Representatives in Congress be requested 1 :o urge forward all legislation on the sub- 1 ect. You also rescinded all outstanding c contracts if any should exist for the col- c ection of this claim. It seems that the s Black Report made in 1S58 and mentioned c Dy the State Treasurer embraces all the ;estimony and facts relative to the State's ( dairu. In view of the importance of this s eport I recommend that you provide for c in examination of all the old records and $ specially the old rubbish that is stored f iway in one of the unoccupied rooms of 1 he State Capitol to see if this report can >e found. Its recovery may be the means >f our getting a considerable sum of noney from the United States Government and it is important to put our Senaors and Representatives in possession of ill the facts that can be obtained. As I I inderstand it, the claim of the United ? *-- ^ * r? .i. ~ ?r siaies Vjovernuicni iui liic sclv-iciijcul ui he $i25,ooo"of South Carolina bonds beonging to the Indian Trust Fund and the * iccumulated interest is a just and honest :laim which we ought to pay and 1 vhich we could pay with our claim ? igainst the United* States Govern- 1 nent and have a balance to the credit of 5 he State if we can find the testimony to 2 ubstantiate the claim of the State. The 2 natter was in process of settlement when J he Civil War broke out in i860, and the state had joined with other States in pro- * est against the unfair methods of the J Juitea States in adjusting the claims ani t was to sustain its contentions that 1 Hack was employed to work up the J state's case. It may not be possible to >btain the full amount claimed by the state, but I am informed that there is abolute proof in official documents that the Jnited States acknowledged that it owed ] he State of Sou4h Carolina in 1S31 >78,000 and this with accumulated inter- ] ist for fifty-nine years would amount to c ibout $350,000. If this could be adjusted t vithout going into the disputed claims the j state could pay the claim the United s states Government holds against it aud c lave about 5100,000 left. Under the con- \ olidation Act of 1873 the State Treasurer f :an only refund old bonds at fifty cents s >n the dollar, but if a settlement as sug- c jested could be made with the United c states Government you might pass an ^ct authorizing the State Treasurer to ettle at 100 cents on the dollar on . ondition that the United States pay the . ust claims to the State of South Carolina ? is acknowledged in the report of the Secetary of the Treasury in 1858. For a statement of the bonded debt of ? he State your attention is directed to the | mnual report of the State Treasurer. Our ? >onds find a read}* sale in the markets of he world at a premium and the credit of he State is good. j TAXATION. ? 1_ The Constitution says that "All taxes a ipon property, real and personal, shall be a aid upon the actual value of the property \ axed, as the same shall be ascertained by r n assessment made for the purpose of I aying such tax." Italsosays the "Gen- r :ral Assembly shall provide by law for a e miform and equal rate of assessment for s axation." It is a fact that very little if d ,ny property is assessed for taxation at its i: 'actual value." For if it were the taxa- t >le property of the State would be a great v leal more than it is and the rate of taxa- c ion could be considerably reduced. To 1 he taxpayer, however, that is not a mat- t er of very great concern, for a certain t .mount of money has to be raised to meet z he expenses of government and while, if v HE BAJ the valuation were high the rate could be reduced, yet in the end it amounts to the same thing. The question that concerns the taxpayer is to have a uniform value :>f assessment whether it be the actual calue or one-half the actual value. The burden of taxation would then fall equally Dn all the taxpayers in proportion to the property they own, but if one man's property is assessed at its actual value and mother man's at one-half its actual value the one either contributes more than his share to the support of the government or :he other does not measure up to his duty in this matter. The main desideratum is to secure such a mode of assessment as will give a uniform valuation to all property subject to taxation. That such remits 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 i ~ i* i 4. it.? uUUUty uuarub ui ccjuajiz-auun, uui mc manner in which they as a rule discharge tlieir duties and the time they allot to the lischarge of these duties does not secure i uniform valuation of property for the purposes of taxation. Nor indeed could they do it under the present plan if they tjave more time to it. They may secure in approximate uniformity for valuation in each county, and so far as county purposes are concerned that might suffice, out the average in the counties varies and the burden of State taxation does not fall equally on the several counties. I have ao fully matured plan to submit for your :onsideration as a remedy for this evil, but I am persuaded that if some plan ;ould be devised by which the Constitution could be obeyed and all property assessed 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 ?ach township and take returns of property 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 consideration 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 quessn arises as to the valuation of the property it could be settled by the Auditor, the board of assessors tmd the owner of the property. These township l>oards should se men of ability and character and >hould be in position to determine'the actual value of the property. I believe :hat some such plan if properly carried >ut 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 :his line. There is also some complaint of the irregularity in which some County Treasarers remit taxes collected by them to the state Treasurer. The law fixes the times it which they shall remit but many of Viorji rl/-> not nScprvp it T tViinV it would )e advisable to place them on salary the >ame as County Auditors and require nonthly statements from them and withlold their salary until the statements vere received. And also require, them ;o submit with their monthly statement a statement from the bank of deposit shoving the amount of money to their credit ts Treasurer. And penalty should be provided for the failure to turn over unds and make reports as required by aw and power given the Governor to suspend or remove such as persistently efuse or neglect to obey the law. This subject of taxation is one that nore directly concerns the people than iny other with which you will have to leal and it deserves your most earnest :onsideration and in whatever you do you should endeavor to make the burden bear equally upon all the property of the State. By comparison of the figures in the Comptroller General's reports you will see that the taxable property for the fis:al year commencing January I, 1S99, is 53,185,183 more than for the preceding iscal year. Total taxable property for the fiscal 3'ear commencing Jan uary 1st, 1899 $176,422,288 Total taxable property for the fiscal year commencing Jan uary 1st, 1898 I73?237,io5 n crease 3>i85.i83 SINKING FUND. I beg to direct your attention to the retort of the Commissioners of the Sinking 7und from which it appears that the Cunulati^e Phosphate Sinking Fund now imounts to $347,731.38. This shows an ncrease of these assets of $51,125.94 since the report of last year. Of *his imount $11,746.65 is derived from interest tud $39,379.28 is derived from phosphate oyalty during the year. The assets of his fund consist of the following: State stocks $ 35,728.56 Bank loan secured by State Bonds 20,000 00 itoans to Counties 113,084.33 interest beariug deposits in Banks 178,918.49 Total $347.731-38 The assests of the Ordinary Sinking Fund amount to $43,330.64 of which $30,200.00 is loaned to counties and $13,30.64 deposited in banks. This shows a lecrease of this fund of $2,143.42 since he last report. This is covered by the mrchase of escheated lands which have ince been sold at a profit but the terms >f sale have not yet been fully complied vith by the purchaser. The report gives iill details of the work of the Commisioners for the year and I invite your :areful attention to it and the recommenlations contained therein. PENSIONS. A generation has passed since the War Between the States. The Southern solliers who fought for a cause they believed o be right laid their all upon the altar of heir country. Greater sacrifice and selflenial were never more cheerfully made n any cause or in any country than in his struggle by the Southern soldier, rhey displayed a fortitude and a heroism hat will furnish themes for the poet and he historian for all time to come. They ost in battle because of overwhelming lumbers and resources on the other side, md without repining laid down their arms :nd returned to their homes and began vith a spirit of cheerfulness rarely seen to ebuild their lost fortunes. Many of them lave passed to the other shore and now est under the shade of the trees, and :very year the ranks grow less. It is our acred duty to honor their memory and lefend their goal name. Not only so, it s our duty to take care of and provide for hose who are in need of our help. This ve can do without the slighest semblance >f disloyalty to the Union. There is no onger any antagonism between the secions. The Southern soldier will defend he Union as cheerfully now as any citien. This was demonstrated in the war rith Snain where those who had onnosed each other in battle fought shoulder to shoulder for the flag. What we are able to give is but a pittance, but it helps and we should give it cheerfully. Last year you appropriated for pensions to Confederate soldiers and widows of soldiers the sum of <100,000. I recommend a like appropriation this year. It is important that this appropriation should be expended and distributed wisely and in such a manner as to meet the intention of the appropriation. The selection of good, competent, and conscientious 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 you consider the wisdom and advisability 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 7,15s pensioners. Of this number 2,910 are widows of soldiers. The total amount disbursed in pensions was ^S,675.So. The wi s were paid $38,412 and the soldiers ^ 363. So. DIRECT TAX. Under the provisions of the Act of Congress August 5, 1S61, a direct tax was imposed upon the citizens of the United States, and a part of it was apportioned to and assessed upon the State of South Carolina. 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, 1861, the whole of the parish of St. Helena, and all of that portion of St. Luke's, which was composed of islands, fell into the hands of Federal forces, and the Direct Tax Commissioners established themselves at that point, and under the administration of the law all of the property belonging to the citizens of those two parishes was sold and bought by the United States, and resold under the provisions of that Act, and of other Acts amendatory thereto, and these citizens were entirely divested of their nrooerties. Later UDon the determination 1 I I # A of the war a portion of the direct tax assessed to the State of South Carolina was collected in Charleston and in some other lower counties of the State. The proceeds arising from the sale of the lands in Beaufort went into the Treasury of the United States under the different laws relating thereto, and have been disposed of by the United States Government in accordance with those laws. A number of school farms, consisting each of 160 acres, carved out of the plantations entirely in St. Helena parish, were reserved from the early sales, and leased by the Government, and rents collected and separately kept, and at the close of the war the Government found itself in possession of these school farms, of a number of houses and lots in the town of Beaufort, and a number of lots in what was then known as Port Royal City, a mythical city sought to be laid out and established 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, 1S66) 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 sold and the proceeds invested in bonds of the United States, and the interest used under direction of the Secretary of the Treasury iu the support of schools, without distinction of color or race, on the islands in the parishes of St. Helena and St. Luke's, and by subsequent Act of Congress, approved March 3, 1S73, it was directed that in addition to these funds the rents derived 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 support of free public schools in the parishes of St. Helena and St. Luke's, South Carolina. in eaual carts, the interest of which shoula be annually expended to increase the efficiency of any free public schools established and sustained in said parishes by authority of said State, if such school shall exist,otherwise at the discretion of the commissioners herein named, and a special board of three commissioners, directed to be appointed by the Secretary of the Treasury, removable at his pleasure, each to receive a salary of $ioo 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 iu the neighborhood of $53,000, which money, in obedience 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 Beaufort County, and continues to be so applied to this day. An Act of Congress approved March 2, 1891, was passed to refund the money collected by the United States under Direct Tax Acts, and a provision was made in the 4th section of that Act to make some partial compensation to the citizens of Beaufort for the loss of their lands and the actual direct tax, with the penalty and 1 interest, has been refunded to the citizens of this State, and the citizeus of Beaufort 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 proceeds 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 (McKee vs. U. S., 164 ( ~ i-> T-V _ \ 1 1 _ 1 1 Xl. - i. U. O. Keporis, 291) nas aeciarea tuai a { perusal of the entire Act (March 2, 1S91) , shows that its purpose was to pay back to ] the States, and to] individual citizens of the States the amounts of money received from them in the course of the execution of the Direct Tax Acts of iS6r, . and Acts amendatory theieto." This fund , could not be paid back lor lack of legisla- ; tion, inasmuch as the effect of the Act of ( March 15, 1S73, has been to confer it into ( bonds, aud impound it in the Treasury j "subject to the pleasure of Congress." , It seems to be somewhat of an anomaly . that the Government of the United States < should feel itself interested in the free , schools of two of the parishes of this State, j and should go to the extent of withhold- j ing aud using money which morally belongs to the citizens of Beaufort County j to obtain tilt* funds wherewith to do it, ( and it has also seemed to me that it was the ( peculiar province of the State of South 1 Carolina under its Constitution to provide for all of its free schools, and this it lias done without making any exception in respect to the schools in these two former parishes, and the conduct of the Government of the I'nited States in this regard would seem to he somewhat of an invasion of the constitutional rights of the State, as well as an injustice to those citizens, the proceeds of whose lands are thus withheld and perverted. I have, therefore, requested a member of Congress to introduce a bill to repeal the provisions ot the Act ot March 15, 1S73, to provide for the sale of those bonds, the proceeds 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 interested, 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 c taring 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 duty but we should esteem it a pleasure to care for them. I desire to cail your special attention to the full and complete report of your efficient Superintendent of the State Hospital for the Insane, 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 cue thousand. 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 Board of Regents to me it is stated: "The steady growth of the institution in the last twenty-five years has imposed burdens upon us beyond the ex pectations or our predecessors. I ne number of colored iusane will in a few years exceed the white. While the races have always occupied separate buildings or wards, yet we cannot but anticipate the time when a wider separation than now exists will be deemed necessary. In dealing with her charitable institutions 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 discussed in the report of the Superintendent. The Board of Regents desires to suggest for your consideration the better development 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 beneficiary support in the State Hospital. Our ; law should also be more specific in dealing 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 ordinary 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 $10,000. An itemized statement will be found in the Superintendent's report. The Board estimates that it will need for this year appropriations as follows: For maintenance $100,000 i For debt on Wallace property and 1 interest 4,360 i For permanent improvements 10,000 \ For Regents 1,200 1 _ _ 1 5ii5.56o 1 The institution is efficiently managed and the appropriation is as economically ] expended as is possible with a wise conduct of the affairs. I commend to your : favorable consideration th? suggestions of 1 the Superintendent and Board of Regents. SOUTH CAROLINA INSTITUTION FOR THE J EDUCATION OF THE DEAF AND THE BLIND. The annual report of this institution for the year closing December 31,1899, shows an enrolment of 186 pupils, representing thirty-seven counties. As an evidence of 1 the economical manner in which the in- j stitution is managed the average cost in 1 twenty-four schools in which this school 5 was included was $222 per pupil as against ? 5132 for this school. But the. school has J 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 accommo- , dation of a greater number." At a meet- j ing of the Board the following action was taken: ."On motion of Mr. D. E. Con- 1 verse the Superintendent was instructed to ask the Legislature in next annual re- ? port for an appropriation of $20,000 for the j erection and equipment of a school build- J ing. Also to renew request for appropriation of $ro,000 for building for department ( of colored pupils." The following appro- c priations are deemed necessary for the * proper maintenance and equipment of the institution for the ensuing fiscal year: For support $20,000 ( For general repairs 500 j For school building 20,000 x For building for colored pupils 10,000 t Superintendent Walker and his efficient t :orps of instructors are performing a labor ? of love and doing an excellent work at s this institution. The care and education t of these unfortunate children of the State ] should enlist your sympathy and com- ^ rnand your thoughtful consideration. 1 PENITENTIARY. ^ At your last session a resolution was adopted ordering an investigation into the J affairs of the State Penitentiary. That e investigation was had and a report of the c committee was submitted to me as direct- s ;d by the resolution. I have submitted t in a separate message the action taken by s me on this report and beg to direct your \ attention to it and also to the report of c die special committee. That committee s performed the duties laid upon it efficient- i iy and well as you will see from an exam- I ination of their work. t The present Superintendent of the Pen- s itentiary, Capt. D. J. Griffith, took charge t an the T$tli of March. An examination t oi his report will show that the affairs of r .he Penitentiary have been managed in a r i ). very satisfactory manner and the finances of the institution are in a very healty condition. lie found it necessary to do much repairing on the buildings at the institution and 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 in cash and he found it necessary to commence buying provisions to support the inmates at once and from March 15th to the harvesting of the new corn crop he was compelled to buy 3,3SS bushels of corn and meal. It does not appear to me to be good business judgment, with the farms that are worked by the State, to be forced to buys so large a quantity of corn and meal when they could and ought to to made 011 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 sufficient to supply the institution during this year until the new crop conies in. There was also a large crop of oats made, something over 4,000 bushels having been sold. The Superintendent says: "The year agriculturally has been satisfactory, considering the late start and other disadvantages under .which the work \vas 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 several 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 humane to secure a report from the physician of such cases and have them turned out, or placed in a separate building remote from other convicts, for their punishment was not intended to be a slow death. There have been only 15 escapes under the present management and 12 of these were from stockades 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 not 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 careful consideration of these contracts.-These suggestions are made only in the interest of the efficient management of the institution and not with a view of criticism. There has been a slight total increase of -A ? -3 i?? or- 4-1-1 a fnl. CUQYICIS uurillg LUC paoL y tai, ao wuv *v*lowing statement will show: CONVICT STATEMENT. Prisoners in confinement December 31, 1898 784 From courts since that date. 272 Recaptured 17- 289 1,073 Discharged.... 199 Pardoned T6 Escaped .. 15 Accidently killed 1 Died 41- 272 In prison December 31, 1899.... 801 A summary of expenditures and receipts during the past year shows a net cash balance on hand of 19,886.67. Balance cash on hand Dec. 31,'98$ 4,804.44 Total receipts for the year 63,518.23 $68,322.67 Total expenditures for the year. 58,436.00 i. Cash balance December 31, '99.$ 9,886.67 In addition to the above receipts the following amounts were collected and belong properly to the earnings of 1899. fan. 3. Collected from contractors.. $ 431.60 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 institution much more economically, and thus in the end be able to save money for :he State. I commend to your careful consideration the report of the Superin :endent 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 youth. Not only has this been manifest in our higher institutions of learning but :he country schools and the primary schools throughout the State have been greatly improved. In almost every incorporated town and many' of the country listricts the three mill constitutional tax las been supplemented and the schools ire kept open for the full school year. The ;eaehers are educated Christian men and vonjen who hav e gone out from our coleges and training schools fully equipped or their work. In a government like ours he education of our youth is of paranount importance. Any legislation that vill foster and encourage our common ;chools should receive your hearty approval and endorsement, for you may foserand build colleges as you please, the _ - act remains that a vast majority of our :hildren can never avail themselves of a :ollegiate training. If the means are ivailable it is within the range of possibility for all of them to obtain a common >chool education, and thus be equipped "or the proper discharge of the duties of htizenship. Intelligent citizens make ntelligent voters. Educated mothers ear intelligent citizens. When you put noney in education you invest capital hat will givq you ever increasing return md can neither be lost nor squandered. To ;ecure efficiency in our common schools hree things are of paramount importance: - * First, you must have the means with * vhich to operate them. Second, you must lave educated arid consecrated teachers. Third, you want intelligent and efficient bounty Superintendents of Education. Unfortunately with the money which the State is able to expend for cpmmon school :ducation the average length of the terms )f the public schools where the public ichool tax is not supplemented is only from hree to four months. It is impossible to _ .onrl tVinrnncrVlnpw .ecure 0 vhich we should have unless the schools , :ould ruu longer. The teachers as a rule, ire efficient and competent and their pay s far too small for the work they render, fear that the parents too often feel when hey have paid their tax that they have hifted the responsibility for the educaion of their children from their shoulders o the State. If the parents could be nade to realize the importance of this natter and their responsibility and duty " ; - : . , : S1