Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-02-07
STATE WAREHOUSE BILL.
Hon. John |. MCLaufin Discusses
Fundamentals Of Plan.
BANKING and FINANCE INVOLVED,
Able Speech Feature Of Last Tuesday
Niaht's Session Of the senate-chann-
pion of New Plan to Finance Cotton
Crop and Regulate Prices, Makes
Known the Reason for His Faith.

pion Of New Plan to Finance Soeso'
Crop and Regulate Prices, Make
Known the Reason for His Faith.
The feature of the legislative pro
ceedings so far was speech by Sena
tor John L. McLaurin Of Marlboro
last Tuesday night, on the state ware
house bill. The bill having been mad'
special order, 1t was announced II
advance that Senator McLaurin wa
to speak and not only were all but
few of the senators in their seats; pu
there were many visitors from various
parts of the state, on the floor and II
the galleries. Governor Blease ane
Chief Justice Gary were among the
more prominent public officials Whe
were present to hear what the senator
from Marlboro had to say. Senator
McLaurin spoke for more than ar
hour, and was listened to with tne
closest attention throughout. The fui
text of his speech is as follows:
Senator's:
About one year ago, 1 was permit
ted, with Mr.. Chas. Crosland, TO repre-
sent the state of South Carolina at Q
conference of the governors OF the
cotton states in New Orleans.
The question under consideration
was how to regulate the sale of cotton
40 as to insure to the growers ran
nrofit and to the manufacturers tina,
Stable price for the raw material, which
would destroy a speculation In futures
as ruinous to grower and spinner as II
ia burdensome to the consumer.
II was the unanimous opinion OF the
conference that state owned and oper-
ated warehouses constituted the Key
to the problem, and the representatives
from each state pledged themselves To
go home and begin an agitation to this
end. So far as South Carolina Is con-
cerned that promise has been faithful
ly redeemed.
constitutionality Tested.
The matter was presented to the
South Carolina State Union, where u
met at first with decided opposition
but after a thorough discussion was
unanimously adopted by that body, and
the President, Mr.. Dabbs, became by
virtue of his official position. sponsor
for the measure. Before the bill was
submitted to the Union, however, at 9
public meeting of the citizens OF Marl.
boro county the idea was endorsed and
our delegation in the general assembly
requested me to draft bill, which
did. =
Those In charge Of the measure IN
Louisiana deemed 1t necessary to amend
the Constitution, but felt sure tina,
this could be avoided by means OF dl-
rect appropriation, and that In any
event, we could get a declaration from
the supreme court as to whether the
purposes Of the act came within the
police powers Of the state.
The bill passed the legislature, re-
ceived the signature Of the governor
and under an agreed case was argued
before the supreme court:
may also add that 1t was unani
mously indorsed by the Democratic
state convention. In its decision the
court denied the constitutionality OF
the act on the sinking fund provision
but sustained the act as being within
the exercise of the police powers Of the
state. The court could easily have an
nulled the provision as to bond is-
sue and let the act go into operation
Just as the knife of the surgeon re-
moves the useless vermiform appendix
and the patient lives on. think, how
ever, that the court realized as did
that the bill needed improvement, and
perfecting in many respects before II
was put into operation, and 80 far as
was concerned / welcomed the courts
legal opinion and rejoiced In its practi-
cal wisdom. At the meeting Of the
Farmers Union in July, expressed
myself in this way and pointed out
hn
The state president and myself were
instructed to prepare a bill, and 1t Is
this measure which we now have un.
der consideration. The Fundamental
principles Of both bills are the same
but the bill under discussion Is broad
er in scope.
Time Favorable.
Last year at this time the entire
south was deeply interested in cotton
prices, and ready to try almost any
plan or scheme that was proposed
While l realize that the interest is moi
80 wide spread with cotton at thirteer
instead of seven cents, / believe thai
this is the more favorable time for the
consideration of this bill, because we
are not so ready to try experiments
and are better prepared to give the
CtlIIl, SSElOuS COllSlucIdllOll "IlCl
radical departure Of this kind should
receive.
1 am perfectly frank in saying tha
the time Is not as favorable 80 far al
inducing other states to join us, ant
realize that to accomplish all that 4
should, every cotton state must oper.
ate a warehouse, because II Is only ir
that way that we can carry out tn,
trust principle of establishing mini.
mum price for cotton, which will In
clude not only actual expenses o.
making. but a reasonable interest OF
the amount invested in land and ma
chinery.
We have been fortunate this year II
South Carolina. Some counties hav,
raised staple cotton which has com
manded from 16 to % cents per pound
| short staple has ruled from II to 1:
cents, and with great corn crop ou
people are prosperous, where a yea
ago ruin stared us in the face. Sup
pose this year had been a repitition o
1911; where would we be?
Is 1t not well then in time of peac,
| to prepare for war? / have no doub
| that this year will see the largest acre
age and with the heaviest use of fer
| tiliZer, we may face a twenty million
| bale crop. 1t will be too late next Oc
| tober to provide banking facilities, ant
! warehouses to avert another disaster
which will mount up in the millions
We must start year ahead, and u.s.
| some of the fatness of these days t,
tide us over the lean years sure t.
come. Had an adequate banking ant
warehouse system been in operation
for the last crop 1 believe that 1t woult
have saved the farmers Of this stat
twenty millions Of dollars of loss.
sold cotton in October as low as 6
cents and in June l sold what hat
warehoused at 123 cents. 1 think
hazard little in saying that 10000
bales of cotton were sacrificed in thi
way because it was impossible to holt
it until spring.
The losses on any one Of ten crop
would establish a warehouse system
and provide funds to finance 1t as well
Take a table of prices for ten year
past and the average difference be
tween October and May is about 81
per bale. If a man for ten years pas
had bought 1000 May and sold 100
| October and absolutely made no othe
transactions, he would have lost none.
only once and his profits would ap
proximate 100000.
| The strongest argument that hav
heard advanced against this bill is tn