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LIABLE FOR REVENUE TAX.
Federal Supreme Court Decides That
South Carolina Must Pay for Ev
ery Dispensary-A Business
The supreme court of the United
States decided that the national gov
ernment may properly tax the state
liquor dispensaries of South Carolina.
Ihe opinion was delivered by Justice
Brewer in the case of -he State of
South Carolina vs. the United States.
This action was instituted by the state
of South Carolina to recover $20,ooo
paid to the revenue officers of the na
tional government on account of the
sale of liquors by the state and county
dispensers under the dispensary law.
The- state took the position :that as
the dispensers sold liquor without
profit, they should not 'be taxed by
T the government, but the 'tax has been
collected since 1893. This is said to
have been the first case in which a
state unites in one undertaking the
exercise of its police power together
with the prosecution of a commercial
business. The court of claims dis
missed the prosecution on the ground
that the exercise of police power was
6but thinly disguised, holding that the
real purpose was money making and
this decision was affirmed.
The contention on behalf of 'the
state. was that as the United States
s beyond the reach of state taxation,
so is ithe state equally beyond the
ceach of United States taxation; that
neither the property nor the agencies
A and instrumentalities used by the
state for the transaction of its busi
ness can be subjected to any burden
of taxation by the United States. Tn
: support of the proceeding by the na
tional authorities, it was urged that
/while this may be true - as to any
strictly governmental functions, yet
w.when the state engages in what was
looked upon at the time of the adop
tion of tle constitution as a private
business, the individuals acting for
he state in the transactions of that
'business become amenable to the tax
ing powers of the United States. The
court sustains the latter contention.
Admitting that the delicate* ques
?tion of preserving the even balance
between the national government and
state government was involveddin the
case Justice Brewer laid down the
~"general proposition that there is no
>~ onstitutional limitation on the pow
er of the general government to col
Slect license taxes. "Looking at the.
-t on'stitution in the light *of the con
ions surrouinding at the time of its
adoption, it is obvious," he said, "that
the framers in granting the' full pow
er over license taxes 'to the national
governmen$ft meant that the power
Sshould be complete and never thought
'that the states by extending 'their
functions could practically destroy it.
' Ihe framers of the constitution
~, ere not anticipating -that a state
would attempt to monopolize any bus
- ness he.retofore carried on tby indi
"Further, it may be 'noticed that the
tax i.s not imposed on any property
Sbelonging-to the state, but is a charge
on a business before any profits are
Quoting various decisions he, de
'ducted the following general conclu
. sion: "These decisions, while not
~>controlling the question 'before us. in
'dicate .that the thought has been that
the exemption of state agencies and
inst,rum'entalities 'from national taxa
- tion is limited .to those which are of a
Sstrictly governmental character, and
Sdoes not extend to those which are
used by the state in the carrying on
Sof an ordinary private business." The
opinion dwelt at length upon the pos
Ssible consequences of conceding the
-;position of South Carolina in 'the con
troves as follows:
'illhe right of South Carolina to
control the sale of liquor 'by the dis
~ pensary system has been sustained.
~~The profits from the business in -the
year 19o1 were over half a million of
dollars. Mingling the thought of1
Profit with the necessity of regula
tion may induce the state to take pos
session in like manner, of to'bacco,
oleomargarine and all other objects of
internal revenue tax. If one state
finds it thus profitable other strates
<may follow and the whole body of in
ternal revenue tax be thus stricken
"More than .this, there is a large and
growing movement in the country
in favor of the acquisition and man
agementc by the puvblic of what are
+temed pubic utilities, including not
merely therein the )upply of gas ar
water, but also the entire railro
system. Would the state by takir
into possession these public utiliti<
lose its republican form of gover
"We may go even a step furthe
There are some insisting that the sta,
shall become the owner of all prope
ty and the minager of all busines
Of course this is an extreme view, bi
its advocates are earnestly. conteni
ing that thereby the best interests i
all citizens will be subserved. If th
change should be made in any stat
how much would Th-at state contribu
to the revenue of 'the nation? If th
extreme action is not to ge count(
among the! probabilities, consiaer tI
result of one much less so. Suppo
a state assumes under its police pow
-the control of all those matters su,
ject to the internal revenue tax at
also engages in the business of ir
porting all foreign goods. The san
argument, which would exempt tl
sale by a state of liquor, tobacco, et,
fiom a licen-se .tax, would exempt t1
importation of' merchandise by
state from import duty. While ti
state might not prohibit importatior
as it can the sale of liquor, by priva
individuals, yet paying no import 'du
it could, undersell all individuals ai
so monopolize the importation -ai
sale of foreign goods.
"Obviously, if the power of t]
state is carried to the extent sugges
ed and at the same time relieved fro
all federal taxation, the national go
ernment would be largly crippled
its revenues. Indeed, if all the stat
should concur in exercising the
powers to -the full extent it would 1
almost impossible for the nation i
collect 'any revenues. In otheriwor<
in this indirect way it would be wit]
in the competency of the states 1
practically -destroy the efficiency
the national government."
Justices White, Peckham and M
He Saw Double.
San Francisco Argonaut.
A Scotch minister and his servar
who were coming home from a wel
ding, began to consider the state inl
which their p.otations at the weddir
feast had left them. ":Sandy," said '.
minister, "just stop a minute here ti
I go ahead. Maybe I don't walk vel
steady and .the good wife might r
mark something not just right."
He walked ahead,.of the servanft f<
a short distance, and then aske
"How is it? I am walking straight'
"Oh, ay," answered Sandy; thickl
"ye'rd a' recht-but who's that who
IMPORTANT NOTICE-If m
tomers want to get the balance <
their winter shoes at 'old prices the
had better come as early as possib
as I am having to pay from ten to fi
teen per cent advance on all I bu
now and I have marked nothing u
that I bought at old prices.
..A. C. Jones.
NOTICE OF FINAL SETTLI
MENT AND DISCHARGE.
N'otice is hereby given that the ux
dersigned will make a final settlemex
as Executor on the estate of Mini
Titus, deceased, in the Probal
Court for Newberry county on tt~
agth day of December, 1905, at I
o'clock a. m. All persons holdin
claims against the said estate wix
present ' the same 'duly attested tb
said date and all persons indebted t
tihe 'said estate will make paymen-t.
I Jno. B.. Morgan,
' . Executor.
All persons having claims agains
the estatce of James W. Derrick, d<
ceased, will present the same duly al
tested, to my attorneys, Messr:
Hunt, Hun.t and Hunter, on or be
fore the 15th of January, 19o6.
Ella M. Derrick,
- Administratrix of the estate of Ja!
W. Derrick, deceased.
' NOTICE'TO CREDITORS.
All persons holding claims agains
the estate of Matilda Beacham, de
ceased, must present the same, dul
attested, to the undersigned executor
on or 'before the first day of Januar3
196. And all persons indebted t
said estate will make peyment by sai
J. 0. Moore,
WV. T. Gibson,
on 't Read
S THOSE THAI
t Know That We are I
ers of High Prices.
We don't depend on
. Quantity and Low: P
tus and substantuates
d lantic Ocean, Much less
g|| Your Interest is to
i. Where do all Low Prices Originate
2. Where are you always treated wit
s 3. Where are you given an honest, fa
r 4. Where can you buy the most relia
5. Where is yourstrade most apprecia
I 6. Where can you find the "Best for
~Until w.e change t
we have the gooc
L20 lbs. Sugar for
S20 lbs. good Rice
40 lbs. Arm & Ha
22 yds. good Chi
~22 yds. Standard
In !'ese ?f?ur19deLi
the hardest blow,
we do it." Somt
Smust have been i
Ihave a few of the
where to buy, as ~
all the rest
The buying pul
i Like to Read th
he Champion Slash
The Origiiators of
Chin Music or Printed
rices quoted "when yoi
the fact That no one th
in Greater Newberry Has the Cha
trade where you can buy the "Best
h cdnsideration and respect?.........
ir and square deal at all times?........
ble Merchandise for your money?.....
,.Is Like Finding
in the Stni
his advertisment a
s an hand we offer
only One Dollar.
for only One Dolla
miner Soda, Bulk, I
Prints for only Or
adies' Jacets, he:
artments we strike
They can't undt
i even suggest th
stolen. No! no!. re
Almighty Dollars, a
Aell as how to sell 1
rou may Find on Eve
lic. you will find at 0.
i buy" advertises
is side of the At
ace to Compete with us.
'for "Less" l
... AT 0. KLETTNER'S.
.....AT 0. KLETTNER'S.
.....AT 0. KLETTNER'S.
.....AT 0. KLETTNER'S.
... .. AT 0. KLETTNER'S.
... .AT O.'KLETTNER'S.
r as long as
for the cash:
~or only $1.00
f'or only $1.00
at the goods
st easy. We
and we know
for less than