The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1901-07-12
REVENU TAXES.
oovarnor and Attorney General
Have initiated d Proceedngs.
BEFORE U. S. COMMISSIONER

oET SNc ". -. %tSVt WI u "
This g QAession is Whethe tile Inter.
raj Rovenua l.sws OF the
Y g. App!y>to Our Dis
panaary System.
Tho State Of South Carolina, acting
through tho governor and attorney gon-
oral, havo initiated proceedings before
the commissioner of informal revenue
to tost the question whothor tho State
can bo legally required to take out
special tax stamps as wholesale and re-
tail liquor dcalcrs undor their State
dispensary laws, and has made do
mand upon tho commissioner for ro
fund of all such taxes hitherto paid,
amounting to 81 GIG. Whilo this sum
ls not large it is realized that the
principle at issue is Of great and far
reaching importance. Tho ono question
involved is, whethc. tho informal
revenuc laws Of tho United States ap
My to tho disponsary system Of South
Carolina so as to ontitlo ths collector to
domand tho payment Of these taxes
Tho entire disponsary system OF South
Carolina is managed by board OF co,n-
missiohers consisting Of three persons
solectod by tho State legislature with
Columbia as its headquarters. This
State disponsary distributes tho sup.
plios to tho county dispenaaries and
those in turn arc managed by county
dispensers or agents, oil beipg under
the board Of State commissioners.
Under tho law no liquor can bo sold ct
night nor TO DO drunk on tho prcmises
Of the disl lcnsary, Tho liquors sold arc
tho property of the State and the profit,
aoorue to the State. Tho salaries Of all
the. officials Of tho dispensaries aro fixed
by law and do not dcpond upon tho
amount Of their sales.
In tho brief filed with the commits.
sioncr Of internal revenue on bohalf Of
the State it is oontcndod that thero is
nothing in tho laws of tho Uoited
States authorizing the collection Of in.
formal revenue taxes which evon i'm.
pliedly, authorizes tho imposition of o
tax against State or its Instrumental
itics of tho State government would bo
to that oxtcnt unconstitutional.
1t is oontonded further that tho prop.
crty Of State and tho moana and in
strumontalities employed by it TO carry
its laws into operation cannot bo taxed
BY. tho federal government End an
opinion Of the lato judge Cooley on this
question is quoted. If any informal
rouenue law Of tho United Statos ro-
quire tho agents of Tho State and ooun-
ty dispensarios Of Shuth Carolina oaoh
to pay o tax to the Uaitod States boforo
being permitted to exercise the dutics
| OF their office, it is oontondcd that the
law is unconstitutional and void, in
this particular, booeuso the tax which
it imposes is purely and simply tax
upon the instrumontalities by which
the State, through it's laws, socks to
minimize the evils Of tho liquor traflio o
within its hordors. Tho federal gov.
ornment it is held cannot constitution
ally interfore with tho administration
OF those laws by requiring spocial tax
stamp to bo paid by it's officials as a
condition precedent to the exercise Of
thoir dutios.
Commissioner YefkeB has the claim
for refund of taxes by the State Of
South Carolina under consideration,
but has rendered no opipion yet. While
it is truo that this dispcnssry Asystom
msy 20 designated State agono9, and
its maintenance uphold as constitution
q! under tho police poWor resident in
al Hoyeroignties, yet tho commissioner
is inclinod to tho opinion that it is not
suoh a necessary State agency, or such q
needful function of tho State govern.
mont as will exempt it from federal
taxation. There arc oortain agencies
absolutely essential to tho life OF a
State, suoh as tho maintonaoo of courts,
executive officials, collection Of taxos
for the payment of necessary 8 ate tx.
pensos and it may be admitted that tho
national government oan at no timo and
in no way, directly or Indirectly, lovy
o tax upon these necessary State
agonoies; otherwise the national gov
ornmcnt might tax thom out Of exist
oDoe. But, tho government contends,
whom tho State performs work and
assumes direction Of an agonoy which
has boon and can DO pcrformod by it's
citlzons in thoir individusI capacity, a
new aspect arisos. If it is stitu.
tionsl to require tho local agents em.
ployed under the disponsary systom Of
South Carolina to pay tho government
tho sums required for retail and whole
salo liquor dealors' stamps, thon this
same State and all other Statos, tho
commissioner points out could tako oon-
troll not only Of the aalo, but Of the
manufacture Of whiskoy, boor and to
bacco, and if 80 then the question
would arise, could the government levy
any tax upon the products Of plants
under aud operated by tho State and
used for those purposes? If SO, while
tho Statcs might thereby DO able to pay
all OF thoir governmental expenses tho
general government, it is sid would
loso an internal rovenuo incomo Of somc
$200 600, 900 per year.
1t Is understood that il tho oommis-
sloncr'e decision is against the State,
as Jscemo probable, tho caao eventually
will go to tho supreme court OF tho
United Statoa.
Fifteen Killed by Lightning.
Crowded together in littlo shanty
under North Shore pier, in Chicago