The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1897-03-17
Phosphate Royalty:
The Companies Tell What
They Want.

4aSy w 0Ao'
The phosphat compaoies have ad-i
dressed the following to the Phosphate
Board 10 reference to the proposed re.
duction ip the royalty. As the matter
is one 10 which the whole State is inter.
es.ed their letter is reproduced
Charleston. S. c., March 6. 1897.
To the Hon. W q. Ellerbe, Chairman,
and the Members of the Board of
Phosphate Commissioners.
Gentlemen We notice with pleasure
that the Legislature has passed sn Act
giving to the Board of Phosphate Com
miseioners full power and authority in
the matter of phosphate royalty. With
full power to increase or diminish as
they deem proper
We write to invite the members of
the Board to come down to Beaufort as
early as possible and inspect the mines
in person They eau then see the sltu-
alton on the ground aud may perhaps
get information which will enable them
to act with more knowledge ip the
pre- Dises. We venture to ask that
this visit be paid as soon as possible be-
cause the condition Of the trade con.
tinues as bad, or even worse. than 1t
was wbeo We bad tbe pleasure Of see
ing you and immediate action if any
relief whatsoever is to be extended.
To this connection we desire also TO
saw that we were notified that af.er our
meeting with The Board, the Board de-
cided, if they bad the power, to afford
as relief BY reducing the royalty to 20
cents ton. such reduction to last until
the 1st of January. 1898, not to apply
10 phosphate rock 90 hand, but such
rock TO be sold frs, at fifty cents ton
belore the company having it would be
entitled to any reduction, aud that the
increase in royalty shopld commence at
So instead of So SO We beg leave to
submit the following views in reference
to CHS action on the part of the Board /:
As to the reduction, Of course that
is what we asked. As to the limit, of
course the Board can limit it as they
please. We would venture to suggest
that the Board would make the reduc-
too subject to modification whesever
the Board sees fit TO do so. rather than
TO FIX cast iron date at which time it
may be tha. the rate will have to be
continued at the reduced figure.
As to the So limit, We would say
that this matter is one 10 which We
think the companies have been put
down to a pretty low figure, but we
will make no objection to that
The ooly serious matter is the ie-
quiremeDt that the rock op hand by the
companies must be sold first a: 6fty
cents ton before such campany is en-
titled tc the benefit of the redu,tiou.
This strikes US as nullifyiog practically
the bereft of the reduction we asked.
Roughly speaking. the Coosaw Com
pay has on band abcat 80, 900 tons;
the Formers Mining Company about
"A. 900 aud the Beaufort Company
about 5000 tons. Last year in twelve
months the Coosaw Company sold only
81, 900 tons. With the reduction lim-
ieed to the first Of January, 1898, ouly,
this would require the Coosaw Com
paoy in teo months to sell 10000 tons
Of rock at fifty cents a ton 10 other
words they would during the whole
period of reduction be selling at the
old rate aud get 20 benefit Of the %
cents reduction at all.
So With the Farmers Company they
would get no benefit Of the reduction
until they had sold $4,000 tons. which
would take them one-third or onehalf
the period, while the Beaufort Com
papy would have to sell 5000 tons.
which would also carry them long
space into the current year.
Another objection is that it would
make discrimination between the
companies. inasmucb as the Beaufort
Company would get on the 25 cents
basis as soon as it bad sold 5000; the
Farmers Company when it had sold
1000; the Coosaw not until it had
sold 10000 tons Therefore. we
would have the Beaufort selling rock at
25 cents against the Farmers at SO
cepts as soon as the Beaufort sold
5000 tons, aud the Coosaw would be
selling at SO cents against both the
Farmers aud the Beaufort at 25 cepts
as soon as the Farmers sold Il, 600.
This would be a severe discrimio ~
aud would, we Thick. tend to make the
companies suffering by it unwilling to
...ll L. 20