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TOL. XL. NO. 17. NEWBERRY, S. C.. FRIDAY, MRII 4. 1904. TWICE A WEEK. S1.50 A YEAR
MATTER OF BUSINESS
AND NOT GOVERNMENT
DISPENSARY IN RELATION TO FEDERAL
State Loses Suit Against Feaeral Govern
ment to Recover Taxes Paid for Sale
A Washington dispatch states
that in the United States Court of
Claims the Chief Justice announc
ed. in the c- of the State of South
Carolina against the United States,.
to recover various sums paid by the
State of South Carolina as special
taxes for the sale of liquors in the
State at the various Aispensaries by
the officials in charge of these dis
pensaries, that the petition of the
State of South Carolina was dis
The dispatch states that this is one
of the most important cases that
has come before Commissioner of
Internal Revenue Yerkes for de
cision since he has been in office.
The State of South Carolina made
claim before him for refund of
these taxes upon the ground that
the State dispensary law, was con-,
stitutional. as decided by th-: Su
preme Court of'the United States,
an( that the collection of the, e tay
es was in reality a tax levied upon
State officials. and, therefore, upon
the exercise of a governmental
function and power. The coimis
s;oner rejected the claim and suit
was then~ brought in the Court of
Claims. and, by its decision. Mr.
Yerkes is sustained.
ashington. March i.-The
opinion of the majority of the court
of 1aims delievered.by Chief Jus
tice Y, tt dismissing the suit.
brought by the State of South
Carolina against the United States
to reco-:er money paid by the
Sta-e az special taxes for the sale'
of '.loors at dispensaries, was
made public today. Thi . the opin
ion says. is believed to be the first
case broLght before a court in
which a State has united in under
taking an exercisA of the police'
power with a commercial business.
The court decides that the excise!
tax is not an interference with the
State's police power. as to the con-,
tention that the federal government
cannot tax the States or their in
strumentalities of government as:
upheld in the income tax cases. The
opinion says that between the prin-'
ciple fivolved in them and the prin
ciple involved in this case there
seems to the court to be three broad
and plain distinctions. The first'
distinction is fundamental. The:
monevexacted here is not a direct
tax. hut an excise. The theory on
which tile constitutional provision'
rests is that an excise upon salable
articles is paid by the purchaser.
"The State of South Carolina
here stands on precisely the same
footing which every other dealer
stands upon. All that it has to do
is to add the internal revenue ex
cise to the price of the liquor which
it sells and let the purchaser pay
i.The second distinction is that in
the income tax cases a tax had been
extended to "a function strictly be-'
longing" to a State. "in its ordinary
In this connection the decision
~In this case before us the mon-:
ev exActed by the United States
was not paved by the taxpayers of
South Carolina. but by purchasers.
at its dispensaries: and it was not
expendled for ordinary government
al r,nrposes. but as incident to car
rvi~nZ on its commercial business
The' court does not question the
:e\er of the Stare to carry on this
Susins. and does5 not doubt that
the p-oce. ds of the bus.ness less"
the taxes of the taxpayers. All it
diecides is that the business of the.
dispensar'rs was. intrinnicA11,
sines and not government. and
bemg business was subject to t1e
same national tax which is borne
by all other persons engaged in the
The third distinction, the opin
i(n says, is that in the income tax
cases the money being raised for
governmental purposes and ex
pended upon governmental pur
poses. the purposes. though not de
fined. were in their nature limited.
In this case there seems no such
limitation. The opinion further
"The more this subject is stud
ied the more clearly it appears to
the court that the State has a right
to the exercise of its police power,
and a right to the use of all proper
instrumentalities of government,
and a right to enter into this com
mercial business of buying and
selling for a profit; but that none
of these rights can be exercisedf as
an evasion of the national govern
ment's right to impose .an excise
tax and to subject all persons,
whether States or private corpora
tions or individual dealers. to the
CASE OF CALEB POWERS.
A-Writer in McClure's Magazine Says that
Powers is Being Lynched Under
Forms of Law.
New York World.
Caleb Powers. under sentence of
death for the murder of William
Goebel. has been thrice tried. thrice
convicted. twice sentenced to life
iiprisonment and once to death.
In McClure's Magazine Samuel
I lopkins Adams. a journalist of re
pute and experience. after a study
of the case upon the spot. says that
the young man is being lynched un
der forms of law for political reas
William Goebel was a politician
who had gained control of the Ken
tuckv legislature. had passed a law
putting the power of deciding elec
tions into the hands of a commis
sion of three men. had secured the
denocratic nomination, and in 1899
had failed to- receive a majority of
the votes. The "Goebel Conimis
sion" unexpectedly failed to certi
f% him as elected. The legislature
was about to throw out 5o.000 votes
and count him in when Goebel was
hot from a window of the execu
Under the sptir of indignation at
this crime, the legislature elected
Goebel. who lived but a short time.
Lieutenant Governor Beckhain suc
ceeded him. Governor Taylor fled
to Indiana. Caleb Powers. repub
lican secretary of state, Jim How
ard and Henry E. Youtsev. a sten
ographer-Howard held for firing
the actual shot and Youtsey as an
accessory-were the principal re
maining members of the Taylor
artv. They' were wvith others in
So far the facts are fairly agreed
upon. MIr. Adams alleges in addi
That the three Powers trials were
partisan: that the juries in the first
to consisted of twelve Goebel
men.'andl that in the last trial there
were eleven Goebel men and one of
That the state appropriated
S1oo.ooo to try CGoebel's murderers
and that Col.'Campbell. of Cincin
nati. was engaged as counsel. .Of
Col. Campbell. Mr. Adams writes:
"His methods of obtaining testi
mony and handling juries in crim
inal ~cases some vears before had so
inensedl the Oh~io public that they
led to the famous Hamilton county
riots, in which the court house was
burned, the jail wrecked and forty
hve peop)le killed."..
That the strongest witness
against Uowvers on the nirst trial
was p)rovedl a perjurer, but was re
leased upon indictment for that ox
fense under bail of Saoo and fled.
That on the third trial Henry
Loutsev was the principal witness;
that irom him a confession had
bee obthaie hv physical tortue
and terror: that Youtsey. after be
ing- broken in nerve by bad treat
Ient. confessed that (overnor
Tavlor had dictated to him a letter
to im I1ovard to conie to Frank
furt and kill Goebel-not a likely
story upon the face of it!
Before the flight of Taylor to In
diana he issued a pardon for Pow
ers and others for the murder of
Goebel. as a precaution that might
serve them at a pinch. It may do
so for Powers: according to Mr.
Adams, "efforts wil! be made to
bring the case before the United
States supreme court., on the
grounds that the pardon issued by
William S. Tavlor. the de facto
governor at that time, is legal and
operative. If that fails nothing but
the intervention of a democratic
governor stands between Caleb
Powers and the gallows. between
the state of Kentucky and the onus
pf a legal lynching."
Mr. Adam's account of the feel
ing over the Powers case is extra
ordinary. "The animosities engen
dered by it have brought about lit
erally scores of fatal quarrels.
Business partnerships have been
dissolved: churches have been dis
rupted: lifelong friendships have
been withered: families have been
split: there is no locality so remote,
no circle so closely knit, as to have
escaped the evil influence. The
spirit which during the imprison
ient of Powers in Frankfort
prompted the persecution of some
ladies who sent food to the prison
er. in such petty w:as as the ruin
ning of their gardens, the poison
ing of their domestic pets and the
inspiring of insulting paragraphs
in the local paper. is still alive.
Within a few months certain prom
;- lnt families of the city were sus
peL,d of talking too much. No
specinc threats were made. but their
out-houses and barns began to
catch fire m-:steriously. Even in
small matters of social life the bit
terness has persevered. and the
young wife of Governor Beckman.
a woman of charming personality
and a member of an old and prom
inent family, was for a long time
all but ostracized in a place of
which she is officially the social
municipal Primary Approaching--obody
Wants To Be Alderman--Other
Prosperity. .\March 3.-The
denomocratic primary of this mu
nicipality will take place on the
1;th of the present month. No can
didates are vet in sight except for
the mayoralty. The names of Mr.
S. S. Brige and Capt. Jno. B. Fel
lers have been put forth by their
resective friends. --nless our peo
ple warm up to the situation a lit
tle in the next two weeks it seems
that the aldermanic p)laces will go
Constable Bedenbaugh has been
on the still hunt for the perpetra
tors of the robbery at- Slighs and
has made a haul. Two young ne
roes living near here seem to be
the sinners-Young Bridges, and
Rev. WV. A. Lutz has gone to
Salisbury, N. C.. to bring home
Mrs. Dingelhoef, who has been
there for medical treatment.
Mrs. S. WV. Calmes is in the
Northern markets laying in a stock
for spring trade.
Rev. Z. B . Bedenbaugh wdil
preach in, Grace church next Sun
day miorning andl Rev. P. Hi. E.
Derrick in the evening, in the ab
sece of the pastor. who goes to
Atlanta at the invitation of Mis
Mrs. F. E. Schumpert has re
mrned home from Columbi1a.
Mr. A. II. Kcohn and Mr. R. P.
Luter, of Columbia. are in our
city.. . . .
Mr. P. N. Livingston is visiting
his daughter. Mrs. F. E. Schum
.\ Ir. and .\Irs. Wiallam :\.dans. Of
Laurens. are here for a few days
with their daughter. \ I rs. Lester
Presiden M1. A. Carlisle. of the
National lBank of Newherry and
the P'eiple'*s lank of 'rosperity,
was in our citv this week.
The Swiss l'ell Ringers will ap
pear in our town hall under the au
spices of the Lyceum association
Thursday evening. March io.
.MIessr's Hogan and Dent. of Co
lumbia. spent Sunday in our city.
Mr. K. I3-ker. of Greenwood.
was in our town one d _. recently.
A Strange Wedding Guest.
An incident followed a wedding
in this city recently which was
quite out of the ordinary. The of
ficiating minister tells the story.
suppressing names and locality. "I
had two other weddings on hand."
he said. "and had no leeway on
time. As soon as I had officiated
at the first affair I started for the
next place. As I was about to
step into my coupe a man whose
manner was at variance with his
garb-the first being that which a
tr-ue gentleman never loses. the sec
end suggesting a tramp-stopped
me and asked me if I would listen
to his story. I told him I would if
he would' occupy a seat in my
coupe. I was satisfied intuitively
that the fellow was honest. He
hesitated a moment. and then ac
cepted. You may say I took great
chances. Possibly but that is a
part of my calling.
"In the 15 blocks I had to go the
man gave ne a rapid history of his
misfortune. le had one arm. and
I learned from him that he had lost
it in the last davs before Richmond.
That appealed to me. for my father
was a Confederate general. and was
killed in one of those stubborn
hand-to-hand engagements in the
Wilderness. You see. I knew some
thing of the commands in those
warring days of the Lost Cause.
In rel)ly to one of ny questions he
told me the name of the colonel of
his regiment. and singularly
enough. he told me several mci
dents in connection with his colonel.
with which I had only recently be
"It was the daughter of the col
onel of that regiment whom I had
only a few moment before united to
the son of a New York financier.
-I quickly learned from my
strange beggar that he knew the
bride's mother. I told him that I
had two other weddings on hand.
but that if he would accompany me.
and remain in my coupe. I would
drive back with him to the house
we had just left. I knew if he was
a fraud-and I was sure he was
not-that he would have a chance
,elude im. m,IMt he didn't. At the
lat wedding on my list tlhe bride
thought it rather strange that I
seemed to he in a hurry. She ev'en
accused me of having readl tile
ceremony as if 1 expected to take
a train. '\erv likely I did. I con
fess there w'as a sort of duplex
mental operation at the time.
"When I got to my' coupe the
stranger was still there. I gave
orders to be driven back to the
house where the first wedding oc
cupied. When wve got there I left
the stranger again, while I went
in to tell his story. You see. I
still gave him an opportunity of
proving himself a fraud. The wed
ding guests were at the feast when
I hurried in. I told the story brief
lv to the b)ride's mother. She re
nebered the m.an's name. At her
request I wenlt out and invited him
in. lHe hesitated on account of his
attire. but I satisfied him that this
would be excutsedl.
"It was a strange sight. although
we 1ministers are accustomed to see
ing strange thlings. The .nother of
the bride. a stately wo-nan. splen
dily gownied. sat beside tile one
armed man in tatters and heard
ils story. It quickly b)ecame known
to 11c tilat this man was one ot
BAD SLIP UP IN THE
FRANCHISE TAX ACT
LOOKS AS IF ACT CAN'T GO INTO
EFFECT THIS YEAR.
It May Be, However, That Some Way Can
Be Found By Which to Get the In
come This Year.
Columbia cor. News and Courier.
There seems to have been a bad
slip up in the Franchise Tax Act.
It may be that things can be straigh
tened out and .ome way found
to get the franchise tax income this
year. but the outlook is rather blue.
The following letter from Comp
troller General Jones to Attorney
General Gunter explains the mat
"I find that the 'Act to require
the payment of annual license fees
by corporations doing business in
this State and reports to the Comp
troller General.' was approved by
the Governor on the 29th of Febru
ary. 1904. The Act provides in
Section i for certain reports to be
made by corporations doing busi
ness in this State to the Comptrol
ter General. upon the filing of
which reports the corporation is
required to pay by the first day of
April or the first day of May in
each year certain license fees. based
upon the amount of capital stock,
or property of such corporation.
The time limited in the Act for the
filing of these annual reports has
expired for the year i9o4. and I
desire to be advised whether I can
now require such returns to be filed
for the year 1904. or whether I
shall have to wait until February.
1905. before requiring any reports
under this Act. There is no pro
vision in the Act stating when it
shall go into effect, and as it was
not approved until February 29 it
will not go into effedt until March
Mr. Jones has simply asked for
advice and Attorney General Gun
ter has not vet had the time to study
the matter out and see how things
can be arranged if possible to do
The returns of certain corpora
tions are required to be made to the
Comptroller General in February.
The Act was only approved in the
last days of the session. It is pro
vided that the Act goes into effect
twenty days after approved. and
the thing to do now is to figure
how the returns can be made in
February when the Act under its
own provisions goes into effect in
March. under its own terms.
The poinit now is whether the re
turns are essential and whether the
tax can be collected from certain
corporations without the previous
in king of the returns.
Th~e expectation was that the Act
would go into effect this year and
the franchise tax be a source of in
come for the present year. The
General Assembly expected to have
this income in the making of its an
nual appropriations, which were
$1 14.000 more than they wvere last
year. and if this additional revenue
is not to be raised it will make just
that md?ch more of a deficiency.
the squad that carried her husband
from the field and that h'e assisted
in sendling the body to its home.
It was a stranger sight when
the man, just as he was. was given
a seat at the marriage feast."
-- have traveled all over this
countrv. said Fred Ross. theatrical
manager. to Owen Westford. ac
tor. "and I find that nearly all the
tragedians of the various road
companies invariably ride in the
"No wonder they're called
hamrs chuckled Westford.