Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1912-05-14

The conStitutionality or the state
warehouse law enacted by the general
assembly at its recent session, was ar
gued before the supreme court TO-DAY
The hearing was in compliance with
a provision in the act itself, looking
to the application Of constitutional
tests before putting the law into op-
Grafton. Attorney General Lyon sup
ported the proposition that the law Is
unconstitutional and Hons. John l..
McIaurin and w. F. Stevenson up
held the other side Messrs. McLaurin
and Stevenson prepared the Points
and Authorities" upCn which they re-
lied. together, but each made his own
argument before the court. Mr.. NC
Laurin. it will be remembered, Is the
father of the law. He originated tHe
idea, so far as state conduct or the
warehouse business is concerned, and
managed with remarkable skill and
ability to pilot the bill through the
general assembly. Actively engaged in
cotton farming as his principal pur-
suit for many years past and thus
brought into the closest touch with the
disadvantages and inequalities that
bear down on the business, and haV-
ing applied to the problems involved
all the rich knowledge and experience
that have come to him as lawyer and
statesman, 1t is not surprising that ne
should handle the whole subject be-
fore the court with clearness and pow
er. The technical part of his argu-
ment, while clear and convincing, Is
of but small interest to the average
reader; but the practical, common
sense part is one that any mature bus
mess man of reasonable intelligence
should be able to understand as well
as the supreme court judges them
selves, and given here in full solely
because 1t constitutes a contribution
to this all important subject that is Of
surprising value:
Stripped Of all legal verbiage and
technicalities, it is safe to say that the
constitutionality of this act depends
upon whether the government can en-
gage in the business Of operating a
cotton warehouse in the exercise or
her police powers. The state has
heretofore engaged in the whisky bus
mess, buying at wholesale and selling
at retail, with hundreds Of officers and
agents, acting in every conceivable
capacity. Therefore, the provision or
this act should not seem strange in
South Carolina. The various special
acts passed by the legislature regulat-
ing the sale of seed cotton, weighing,
handling, etc, would seem to indi-
cate that cotton is regarded as COM
ing peculiarly within the police pow
ers of the state.
The internal revenue laws Of the
United States provide for warehousing
spirits, and the act Of August 26th,
1894. provides bonded warehouses for
spirits located at central points For
Sale, Exportation,'' etc. Certainly
furnishing for the benefit Of distillers
facilities for export trade in whisky.
which have nothing to do with the
collection of tax, or the regulation
of an article injurious to the public
health. 1t is a plain measure to as
sist the distiller to find foreign mar
kets for the sale of his goods.
If the Federal government can pro-
vide warehouse facilities to aid bus
mess. the taxes from which consti-
tute only a small portion Of the gov
ernmental income, why can the state
government not provide the same ia
cilities for the cotton exporter, where
almost the whole fiscal system of the
state is based on cotton production?
Again the Federal government un-
der its customs laws, builds, owns and
operates great warehouses at every
important port. This is not done to
collect a tax, but to promote trade
and build commerce.
1t receives deposits OF grain and all
kinds of merchandise and precious
metals. Go to the records OF the
United States treasury department
and you will find that no function of
government is more clearly defined
and practically applied than ware
housing.
Section 1862 Of the revised statutes
Of the U. S., saws that ANY merchan-
disc except perishable articles, also
gun powder and other explosive sub
stances" etc, may be deposited, at
the option of the owner, importer,
consignee or agent in any public
warehouse owned by the United
States"
We find the Federal government
operating two kinds of warehouses,
one for the advantage of an export
LIQUOR business, and the other for
any article of commerce in either i'm
port or export trade.
Take the diamond merchant for in
stance-suppose he buys one hundred
thousand dollars worth of diamonds in
Paris and imports them through New
York, the duties would be say $50, 900,
which he need not pay. but can de-
posit the diamonds in a government
warehouse and receive receipt which
states that the merchant has dia-
monds valued at 100000, upon which
is due $4,000 import duty. The hold
er of the receipt from this govern
ment warehouse has one of the best
Collaterals in the world, and he can go
to any bank and borrow almost the
face value. paying the $4,000 duty or
leaving the diamonds there until they
can be sold for profit.
The exporter of whisky with
thousand barrels graded and valued in
a government warehouse can borrow
upon the receipt. Both diamond and
whisky merchants have the valuable
advantage of leaving their goods in
the warehouse or taking them out ac-
cording to market inducements. This
is exactly what the legislature of
South Carolina is proposing to do for
the cotton planters.
Merely to provide warehouse and
give receipt for so many pounds OF