The Laurens advertiser. (Laurens, S.C.) 1885-1973, January 13, 1904, Supplement, Image 7
SUPPLEMENT.
The Laurens Advertiser.
' _._ LAUREN'S, S. Cv JANUARY .3, (904,
FIRST ANNUAL MESSAGE
OF
Gov. D. C. HEYWARD.
To the Honorable, the Gentlemen of the General Assembly.
You are again assembled in annual session for the promotion of
(he best interests of the people whom we serve, and I welcome you,
ttiy co-workers, gladly and sincerely, to the thoughtful consideration
of the work that lies before us.
I am indeed grateful that you come together today, undisturbed
by any factional feeling, but animated with the sole purpose of
acting for the best interests of all the people of South Carolina.
You arc the chosen representatives of the sovereign people of our
State, and, as such, grave responsibilities devolve upon you. To
meet these responsibilities you come directly from the homes and
associations of those whom you have the honor to serve, and are
thus enabled to fully know and comprehend their needs. To ren
der faithful service is a sacred obligation, and its true and honest
performance will be to you, I feel sure, not only a pleasure, but a
privilege.
1 cannot here go into details in reference to the general progress
of our State during the past year. It is only necessary for me to
say that our development in all departments?agricultural, indus
trial and commercial, and also including those higher interests which
must ever have their place in the welfare of a pcopUv-has been
most encouraging and gratifying. Much of the continued pros
perity of the State depends upon you, and in discharging your du
ties you will, 1 am sure, bear in mind this fact. The providing for
every necessity of the people should be the chief province of gov
ernment. This should be done with proper regard for necessary
economy, hut the unwise expedient of seeking to be parsimonious
should be avoided, for the reason that the best laws may thus
be rendered inoperative, and the honest effort to execute them
powerless.
In this, the first Annual Message which I have the honor of send
ing to your l>ody, I have discussed those subjects which I conceived
important, and have made such recommendations as I deemed neces
sary. In transmitting it to you I wish to say that you will have
my earnest cooperation.
THE FINANCIAL CONDITION OF THE STATE.
Wishing to present for your consideration an accurate statement
of the present financial condition of the State, I requested the Comp
troller-General to secure the necessary comparative figures for this
purpose. These figures cover the revenue and disbursements made
on account of the current receipts and disbursements, commencing
with the fiscal year, beginning January ist. 1897, and show the
actual revenue and disbursements for each fiscal year down to and
including 1902, with an estimate for 1903. This statement clearly
shows that while the State's revenue has increased, the expenditures
have increased at a greater rate. It appears that the total current
expenditures in 1897 were $879,502.65; total current expenditures
in 1902 were $1,223.971.28, showing an increase of expenditure
in 1902 over 1897 of $344.468.63. In this connection the following
figures are also interesting:
In 1897 the revenue exceeded the expenditures by. . . .$101,099 84
In 1898 the revenue exceeded the expenditures by. . . . 10,019 53
In 1899 the revenue exceeded the expenditures by. . . . 50,048 90
In 1900 the expenditures exceeded the revenue by. . . . 10.045 42
In 1901 the expenditures exceeded the revenue by. . . . 13,924 29
In 1902 the expenditures exceeded the revenue by. . . . 208,795 23
In 1903 the revenue exceeded the expenditures by. . . . 56,304 29
If we take the surplus as above shown for 1897, 1898, 1899 and
1903, amounting to $217,472.56, from the excess expenditures over
revenue of 1900, 1901 and 1902, amounting to $232,767.94 we have
a net deficiency of $15,295.38. In other words, the total revenue
received and applicable to each fiscal year from 1897 to, and in
cluding, 1903, amounts to $6,934.725.33. The total expenditures
for this same period amount to $6,950,020.71, showing a deficit of
$15,295.38, as revealed above. The revenue for 1903, as above
stated, includes $89.137.86, received in settlement of claims against
the United States Government, as will he explained further on in
this message. Had not this amount been placed to the credit of
the general fund the deficiency would have been greater. It is thus
seen that the finances of the State are not in such a deplorable con
dition, but the fact that the Comptroller-General estimates that the
State must borrow during the year 1904. $425,000.00 to promptly
meet current obligations until the tax levy of 1904 becomes avail
able, shows the finances to he in an unhealthy condition, to say the
least. This situation should certainly be remedied and a sufficient
revenue should he provided to place the State upon a cash basis. At
your last session you appointed a committee "to consider how best to
put the State upon a cash basis, what additional sources of revenue
for the State arc available, and what changes should be made in
existing laws for the assessment and collection of taxes." This
committee has completed its report, which will be transmitted to
you. This report is a most important one. It has been prepared
with great care by legislators experienced in the fiscal affairs of the
State, who have given much time and study to the preparation of
their report, and I commend it to your most earnest consideration.
The report came into my hands so recently that I have not had
time?on account of other pressing duties?to give it the careful
thought and consideration its importance demands, and for this
reason I am unable just at this time to make recommendations con
cerning it. However, in this connection, I will say that some
change, with a view to raising more revenue, is imperative. The
complaint of inequality in taxation is an old one, as well as a just
one, and if your honorable body could devise some law by which
this evil could be remedied, and corporations, as well as individuals,
be compelled to return all property for taxation at its real value?
as is required by the Constitution'- the present tax levy would
greatly exceed the necessities of the government. I invite your
specirl attention to this phase of the Subject, with the earnest hope
that you, in your wisdom, may be able Jo enact some law that will
compel honest returns of property and provide for such penalties
as will deter those who seek, under oath, to evade the law. This
is the most important function df the State, so far as its business
affairs are concerned, and it is not only an unwise, but a suicidal
policy, to continue expending more money than the revenues of the
State amount to. The question resolves itself into this, that ex
penditures must be curtailed, or more revenue raised. The former,
I fear, is impracticable, and the latter can only be done in one of
three ways: First, by requiring the county authorities, upon whom
devolves the duty of ascertaining and placing upon the tax books
all property, to exercise a rigid supervision of tax returns, and forc
ing them to require a proper listing of property heretofore escap
ing taxation. Second, by a license tax as suggested by your com
mittee ; or third, by increasing the tax levy, which is undesirable,
as it will only place additional burdens upon the honest taxpayer,
while the "tax dodger" still escapes.
In connection with this part pf my message 1 wish to ac
knowledge my obligation to the departments of the Comptroller
General and Treasurer for the information which has enabled mc
to furnish you with accurate figures as to the financial condition of
the State.
INSURANCE LICENSES.
The Comptroller-General's report concerning this department is
a strong and businesslike presentation of the subject. This report
shows the number of insurance companies doing business in this
State, their financial condition, the amount paid to them in pre
miums and the amount paid for losses incurred, these aggregating
very large totals.
This report embraces the workings of one of the most important
business departments of our State government. It condemns the
present insurance laws as being defective and inadequate, and
offers suggestions providing for the better examination of compa
nies organized in this State, with a view to protecting our citizens
against irresponsible companies. The report recommends also
many changes in our present license laws, including a schedule of
fees to be paid, and regulating how and to whom they shall be paid.
These changes arc many and far-reaching. They are fully de
tailed in the rei>ort, and for this reason I shall not attempt to enu
merate them here. It is estimated that under the proposed changes
the Slate will receive a total revenue of $127,600 from this source,
and 1 quote only the following extract relating to this portion of
the report:
"This would give a net revenue of $108,600, April I, 1904, avail
able for the general expenses of the State government. In addi
tion to this, the State would receive quarterly an estimated revenue
on the gross premiums received in 1904. of $93,000, making the
total revenue received during the year 1904, $201,600. Of course,
the revenue for 1905 will drop back, say to $135,000. This law
would be better for the State and the companies, as it would relieve
this office and the companies of a great deal of expense and trouble."
This is a strong business presentation of a business subject and
in arranging for our State finances it is well worthy of your most
careful attention. The estimated figures given are decidedly interest
ing, and if, as is stated, the proposed law would be beneficial to both
the State and the insurance companies, this in itself would justly en
title it to your utmost consideration. Such a license law as out
lined has been adopted by many States. It is now in force tri North
Carolina, and from what I can understand, is giving general sat
isfaction.
DECREASE OF PUBLIC BONDED DEBT DURING THE
YEAR 1903.
The principal fundable of the public bonded debt of South Caro
lina has been decreased during the year 1903 by $125,000.00 of
State Capitol Bonds surrendered by the United States Government
in settlement of claims of the State of South Carolina against the
United States Government, and decreased on books of State Treas
urer by $37,000.00 Blue Ridge Railroad Bonds, written off the
books by direction of the Act of the General Assembly. (See Acts
of 1903, pages 266 and 267.)
The following figures show the bonded debt of the State:
January 1, 1904.
Principal funded.$6,514,674 14
Principal fundable. 170,208 64
$6,684,882 78
As an offset to these figures, there is an outstanding credit of
$493,277.26, as shown below.
SINKING FUNDS.
The assets of the Cumulative Sinking Fund, for the reduction
and payment of the South Carolina Brown 4 1-2 per cent. >nds
and stocks, having been increased during the last fiscal j :r by
$33?59243f now aggregate $493,277.26; all of which is so invested
and loaned as to yield from four to five per cent, annual interest.
The assets of the Ordinary Sinking Fund having increased
$3,780.02 during the last fiscal year, on December 3r, 1903,
amounted to $61,387.39, of which $2,764.18 belong to escheats;
$53,228.28 of the Ordinary Sinking Fund is loaned out at five per
cent, annual interest.
INSURANCE SINKING FUND.
Under the law providing for "State Insurance of Public Build
ings" 75 Sinking Fund policies are now running, carrying
$583,891.76 of insurance on public buildings at an aggregate
premium of $5,068.11. The assets of this fund at the close of year
1903 amount to $11,651.25, of which $6,000.00 is loaned at five per
cent, annual interest.
A FINANCIAL SETTLEMENT WIT! I THE UNITED
STATES GOVERNMENT.
I am glad to announce to you that, through the efforts of Senator
Tillman, an important settlement has been effected with our Na
tional Government. This transaction involved the payment of
claims aggregating $337,887.96, which amount included a cash pay
ment of $89,137.86 into our State Treasury. This is a matter of the
greatest importance and we can well congratulate ourselves upon
so satisfactory a settlement and one which came at so opportune a
time. 1 shall have the pleasure of transmitting for your informa
tion in a special message, by request of Senator Tillman, his de
tailed communication upon this subject, together with his speech in
the Senate. I deem it appropriate just here, however, to submit
j the following brief extract from this communication, which has
specific information upon the settlement which was so satisfactorily
made:
"It affords me great gratification to hand you herewith warrants
Nos. 5746 and 5747 on the United States Treasurer for $89,137.86,
together with receipt from the Southern Express Company for
$125,000 coupon bonds of the State of South Carolina, with coupons
attached aggregating principal and interest, $248,750, making a
total in cash and bonds of $337,887.86. This warrant and these
bonds have l>een obtained by my receipting the United States in full
for the claim of the State of South Carolina which grew out of ex
penditures by the State on behalf of the United States Government
during the War of 1812-1815."
Further on in this communication Senator Tillman makes special
acknowledgment of the valuable assistance rendered him in this
matter by Mr. James M. Baker of Lowndesvdle, S. C, assistant
librarian of the Senate. In reference to these efficient services Sen
ator Tillman makes the following request in his letter to me:
"In conclusion, I desire to suggest that it will be an act of grace
ful recognition and of simple justice to Mr. Baker that the Legisla
ture should recognize his invaluable services by appropriating a
small amount of money, say $1,000, out of that which has been ob
tained. His work was not done with this idea, however, but he is
poor and has a growing family, and the State can well afford to pay
him handsomely."
In view of the great service rendered our State by Senator Till
man in this matter, I think any request he makes here should find
a ready response. 1 therefore ask your "consideration of this and
concur in the request made by Senator Tillman. The warrants?
Nos. 5746 and 5747?on the Treasurer of the United States for
$89,137.86, were duly received and at my request this amount was
deposited by the State Treasurer to the credit of the general fund.
As the State was under the necessity of borrowing money I thought
this was the most judicious disposition to make of these funds.
EDUCATION.
There is nothing of greater importance to a State than is the
education of its people. Never was this need more all-embracing
and comprehensive than it is today. This is an age of progress and
enlightenment, and history and statistics alike reveal the fact that
the most prosperous countries are those with an educated citizen
ship. Under a democratic form of government, in a republic like
ours, where each individual has a direct and equal share in the
responsibilities of citizenship, it is absolutely necessary that the
people should be educated. Only in this way can there be a proper
recognition of our relation and duty to the State.
To those who are charged with directing the affairs of our State
the work of educating the people should appeal most strongly, and
we should manifest this by earnest labor in this truly great
field. We should give the utmost consideration to every branch
of this work, from the little log schoolhousc to the university; for in
advancing our educational facilities we will not only make our State
more prosperous, but we will make permanent and steadfast a high
standard of citizenship.
THE COMMON SCHOOLS.
The proper education of a people must, of necessity, have its
beginning in the common schools. These should he in every com
munity in our Stale; they should be as well organized on a business
basis as it is possible to have them ; they should be presided over
by competent teachers, with full-length scholastic terms, and the
school buildings should not only he neat and comfortable, but they
should be attractive. The surroundings should he such as to make
the children desire to go to school, and when this has been done
a strong point will have been gained at the very beginning.
Although it is very evident that there is an educational awaken
ing in our State, it is equally evident that much remains to he done.
In fact, the awakening but reveals the magnitude of the task before
us and the great necessity with which we are confronted. While
it is true that the graded schools and the high schools in our various
towns show striking and marked improvement, the conditions sur
rounding the schools in the country are not so satisfactory. We
must remember that these country schools are not in thickly set- :
tied communities, that they have no large school fund; but we must
also remember that a-Jargc majority of the children of the State
are, of necessity, absolutely dependent upon these schools for their
preparatory education.
The average white school in South Carolina is open only 112 days
in the year and the average salary paid to the teachers in these
schools amounts to only $203.04. Surely this is not a record upon
which we can afford to rest and be content. The imperative need
which confronts us demands that we should improve this situation. It
is an absolute reproach to us that these schools are open only for 112
days, which statement means that many are open for a much shorter
period. The same condition exists when we contemplate the small
salary paid to the teachers, faith fid men and women who are devot
ing themselves to this life work.
It is most gratifying to know that these conditions arc being more
realized by our people year by year, and that there is a determina
tion to improve our common schools. In April last many of our
leading educators held a conference in Columbia, and it was then
determined to organize and conduct an educational campaign for
improving school conditions. This plan was carried out by the
appointment of a committee consisting of State Superintendent of
Education O. B. Martin. President D. B. Johnson, of Winthrop
College, and myself, to take active charge of this work. A number
of meetings were held at various places throughout the State, many
speakers interested in education spoke at these gatherings, and, by
awakening decided interest among the people. I believe that much
good has been accomplished.
At these meetings great stress was laid upon the necessity for
the improvement of school buildings and grounds, and several ladies
were employed by the committee to prosecute this work. In ac
cordance with this move, these ladies visited a number of counties,
held meetings among the patrons and formed organizations among
parents and children for further labors in this line. In conducting
the educational campaign and in defraying its expenses the com
mittee was financially assisted by the Southern Educational Board,
to which Board I wish to render thanks for this valuable aid.
RURAL SCHOOL LIBRARIES.
There are entire counties in our State in which not a single county
school library is to he found. '1 he proper training of a people is
hindered by this lack, the school work is not as complete as it should
be, and I concur in the recommendation of the State Superintendent
of Education that a part?if this be only a small portion?of the
State school fund shall be used to encourage the establishment of
libraries in our county schools.
CONSOLIDATION OF RURAL SCHOOLS.
Other States in the Union that arc making marked progress in
all educational lines arc attempting, through consolidation, to es
tablish satisfactorily a strong system of county graded and high
schools. This, In my judgment, is, for many reasons, eminently
desirable, as in itself it will furnish means at home for the proper
preparation for college. Experiment has proved that it is also more
economical to transport the children at the public expense to a large
central school than it is to conduct several smaller schools at remote
and isolated sections.
I herewith present a few figures from the report of the State
Superintendent of Education : The total expenditures for our public
schools during the past year amounted to $1,046,143.50. The