The railroads held an agreement with the Charleston Terminal Company in which they would turn over traffic and pay for such services in order to provide the Charleston Terminal Company with an additional source of revenue to pay the interest on its bonds and not fall behind financially.
Candidate John Grace argued that the franchise of the Charleston Terminal Company should not be renewed and the city should take over the administration of the waterfront.
[1] After his inauguration, Grace immediately began transferring the responsibility of the port facilities to the city of Charleston.
In March 1920, the South Carolina General Assembly passed an act "to authorize cities having a population of fifty thousand inhabitants or more to acquire, purchase, establish, improve, maintain, and operate the port utilities of such cities."
In a special election on November 8, 1921, Charlestonians voted in favor of the issuance of $2.5 million in municipal bonds in order to pay for the purchase of the port properties.