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January io and he ofiered the names
of the officers and directors from the
license tax reports of the Richland
Distilling company and the Carolina
Glass works, two concerns in Colum
bia with which the dispensary has
Of course, it is understood that
Governor MCSweeney had no connec
tion with The rumors of bids being
made for jobs, while such may have
been going on. The rumors may
have been reported to him, but he
could harlly have stopped the rumors
or done anything. No one suggested
that offers came directly or indirectly
to him, although propositions may
have been made by parties who were
alleged to have pulls.
Thursday Afternoon Session.
Mr. William Ellio, Jr., stated that
he heard his name had been mention
ed a+ the morning session as a joke
on Mr. Huseman. He wished it
stated that he had never in his life
represented a whiskey house or had
any connection with any such firm.
He had never in his life directly or
indirectly represented in any way a
liquor dealer. He had very carefully
kept away from the dispensary, di
rectly or indirectly, and had never
made a fee in any way from the dis
pensary. He was asked by Mr. Evans
to be present and hear a certain state
ment from Mr. Huseman. He was
perfectly willing to answer any ques
tions which he might be able to. He
went on to say that he had repre
sented Mr. H. H. Evans in a libel
suit brought against a Barnwell news
paper, but o'herwise he had never
had any connection with any one
connected with the dispensary, and
this connection with the libel suit
was absolutely as an attorney for Mr.
Evans personally, and was in no wise
connected with the dispensary.
As sbon as Mr. Elliot had made
his personal statement, a former mem
ber of the state board, Dan M Miles,
was called to the stand and explained
how whiskeys were bought. The
board would divide up according to
its likes. Outside of one grade it
bought the cheapest liquor if it came
up to grade. He did not think his
board advertised for bids. The prices
were generally on thle bottles. As a
rule the agents were on hand. They
bought on a basis of quality accord
ing to price and they tried to buy as
cheap as possible. The board had
no taster. The board ~bought by a
majority vote. His board put 8o
proof whiskey on the market to de
feat the "blind tigers." This was an
effort to compete with the tigers.
His board bought case goods. They
bought very little, if any, cheap case
goods. He A - liquor (by the smell.
His board uid $1.40 to $1.50 per gal
ion for 1-X. His board tried to buy
on a competitive basis and always
tried to 'buy the cheapest and best
liquor. They always knew from
whom they bought by the sample
bottle being marked on the outside.
His vote was often in the minority
on purchase. No offer at bribery
was ever made to him. He though-r
offers came to those who hinted at
such things. He did suspect some
thing wrong, but he had no reasons
to stand on or to repeat. He was will
ing to answer any direct questions.
He thought Mr. Duothit rejected sev
eral lots of whiskey. The board
carried good stocks and purchased
monthly, but he did not recollect the
facts, as it was ten years ago.
Mr. Dillingham said he had never
been paid twice by any one for any
expenses.. He reiterated that he had
worked willingly for Governor Hey
ward and had the highest regard for
him. He went on to explain the
Howard beer dispensary transaction.
Smith Thomason told him he was to
get halk the profits out of Howard
beer dispensary. Thomason borrow
ed $50 from him for the business and
Thomnason and Howard were to di
vide the profits, as told him. An
affidavit was presented from D. M.
Howard and in This he stated that he
was to receive a salary as heer dispen
ser of S3o, and he understoo~d Mr.
Smith Thomnason was the real owner
of the privilege and that Mr. D. M.
Miles had nothing in the world to do
with the privilege.
Mr. Z. A. Searson.
a former inspec:or and special attor
nev. testified that he had been em
ployed as an expert accountant. He
relat2i his experience a; expert ac
coumn -n and he entered into a volum
noi story of how he had gone into
the finances and especiall the loose
method of handling the contraband
room. He eulogized the bookkeeping
methods and believed that the board
follows rhe statute. He found some
competent county boards aid found
that some boards signed reports with
out knowing what they were doing.
After a while Mr. Searson's testimony
became interesting and he explained
how he discovered tampering with
labels at Scotia. The goods weAe
in the hands of a successor. The
case was settled and according to
instructions there was no criminal
prosecution. On another occasion he
told of how a dispenser had padded
his reports by partly filled cases. He
suggested that every box be examined
by the inspectors. He knew That
Dispenser Bishop allowed beer to be
consumed in his back room. He found,
Windham. of Sumter, short Si.,oo, bu)
thought the error was in Columbia.
He had the accounts made up here
and found that $1,500 goods had been
improperly charged him. The goods
were shipped to Summerville instead
of Sumter and charged in error. He
noticed crown pullers in back doors
at several places. He ra7her believed
in liberal construction Of the dispen
sary law to meet conditions. He
rather ridiculed request books being
strictly used, and saw no great harm
allowing beer to be consumed on or
near the premises. He thought these
little things would regulate them
selves if the larger infractions were
stopped. He wanted to see reforma
tion. He knew nothing about the
Bryan Lawrence shortage. He has
not roeen connected with the dispen
sary since March, 1905. He did not
hear of the Lawrence matter.
The record, Mr. Lyon said, showed
that Mr. Lawrence had never paid
for any of the liquor gotten from the
dispensary for the Isle of Palms.
Mr. Searson said he annually set
tled the Tiencken shortage and ac
cepted a second mortgage in part of
the final settlement.
In the Terry shortage nothing he
thought could be done. The suit
was improperly brought. Then there
was a case of the Argyle hotel privi
lege. A check for $I,ooo given was
turned down, but he finally got the
money for the check. He collected
all the Charleston shortages that
could be kept alive. He brought
suit against Toland, of Spartanburg,
Bedenbaugh, of Prosperity, and Riv
ers, of Hampton. These suits are all
now pending for shortages. These
suits were filed a year or two ago.
He got a settlement in the Camden
claim. where the bank, the Sco'tia
matt r, the Tiencken case, The Ar
gyle hotel company and other set
tlements were made by him. He
forced settlements in freight claims.
He understood whiskey was vended
at touristc hotel privileges.
Mr. Searson is a remarkable talker,
and his fluency of language and his
comments greatly interested the corm
mittee during his long examination.
He appeared to have been a careful
observer and to have done effective
Capt. 3. H. Claffy,
the superintendent of the dispensary.
was next examined. He has charge
of the liquor. There is a lot of liquor
stored; in fact the storage capacity
is overtaxed. There is considerable
liquor there nowv that was there when
he went in. They are mostly case
goods. Most of it was medium
grades. More goods are bought and
stored than npeded i nhis opinion. He
saw no need for such large stocks. He
had no voice whatever in ordering
whiskey. He had never had the
storage room vacant, and it is almost
always overcrowded. Wine on hand
is very slow in selling. The people
'buy little wvine for some reason. They
have just begun bottling hibher price
liquors. The lower grades are put
up plainer. Samples of recent bot
tling were exhibited. The dispen
sary is getting out a number of new
brands. The state buys the goods
as straight goods. a. state is now
puting up in their better grades
three ryes, :wo corns and two mal:s.
The names adopted by the state for
its bottling are: Carolina Belle. Caro
ina's Pride, Private Stock, Standard
\Malt, Monogram Rye. Columbia Club.
ld Mountain Corn. Private Stock.
Thse are all special grades. The
!!(we'stary hai receivedl a corload( of;
bes new labels. He hadu no idea
io far these labels woulId go. These
aes are not usedl on tte cheaper
are used on the cheaper brand . He
did not know how long the carload
of labels would last. 1-e had not
condemned any liquor at the dis
pensary. The samples were ordered
returned to the dispensary by 'Mr.
Gaston. All of the new glass came
from the Carolina Glass company of
By Mr. Blease: He knew nothing
of the purchase .of December. 1904.
or whether it has been received yet
By Mr. Gaston: The board increas
ed certain salaries without his request
or recommendation. He recommend
ed the increased pay for the foremen,
and he told the board, when asked,
that he had no objection to general
increases of s-:'aries of all the help.
The general help petitioned for in
creases., and he had no objections,
as he knew it cost very much to live
in Columbia, but he had not recom
Comptroller General A. W. Jones
explained that his last apportionment
of the dispensary school fund was in
April. There is now no fund for dis
tribution. He had no funds since
April. Several superintenden'ts of ed
ucation asked him if there would be
further distributions. The fund could
be used for school buildings. but the
schools have had no funds since
April from the dispensary. General
Jones went over the distributions he
has made since he has been in office.
He presented the original license tax
return of the Richland Distilling com
pany on request. It showed as diec
tors the following: N. M. Block, A.
Block, I. W. Bernheim, S. J. Lana-han,
and J. S. Farnum. Authorized capi
tal stock $100,000, paid in $8o,ooo.
Distillery located in Columbia. He
did not know the residnece of the di
rectors, and the return did not show
who were stockholders. He was also
asked to present the. license tax re
turn of the Carolina Glass company,
of Columbia. The officers are: John
Jacob Seibels, president and treasurer;
S. C. Norton, general manager; J. H.
Williams, superintendent, and Thomas
Taylor. Jr., secretary. Directors:
John Jacob Seibels, Edwin G. Seilbels,
B. W. Taylor, Benjamin F. Taylor,
William S. Reamer and Thomas Tay
lor, Jr. The paid up capital stock
was $54,000. Authorized capital $6o,
ooo. He -did not know 'the stock
holders in either corporation and the
returns did not show the stockholders
of record. This concluded the after
The committee was in session over
seven hours today.
The Mixson Letters.
Columbia, Aug. 2.-At the opening
of the morning session of the dis
pensary investigating commission
today Representative Gaston sprung
a. sensation the first dash out of the
box by producing the letters of J W.
Kelley & Co., to their state agent,
Col. F. M. Mixson.
Mr. Gaston prefaced the introduc
tion by asserting that the letters
showed that if there is anything
wrong going on with the South Caro
lina dispensary -the wrong-d'ing is in
high places as well as among the
county dispensary managements.
"These letters show that the whiskey
houses are debauching the state of
South Carolina through 'its officers
in the dispensary directorate." said
Mr. Gaston, with a voice ringing with
indignation. "They show that these
Kelley people had reason to know
before hand wha,t orders to expect
of the beard, and while the nature of
the conferences between - the repre
sentatives of the firm and members of
the board in distant cities is still
veiled in secrecy enough is revealed
to show that members of the board
have flagrantly violated the laws of
South Carolina regarding the manage
ment of the dispensary."
Mr. Gaston then proceeded to read
extracts from these letters. These
extracts make an interesting connect
ed story of the campaign the Kelley
people instituted. whereby they in-I
creased their sales :o the South Caro
lina dispensary from nothing to
.oo cases at a clip, the stuff coming
in first in the form of a roo-case or
der and finally by the carload.
Getting In Work.
Here is the first of the extracts:
Jan. ro.-See what you car' do with
:he rnembers of :he board."
"March 24.-Our Mr. W hite has
rust seen our friend. See all dispen
ers :n state you can and get them
o order our Siler Springs and Deep
old plows, pl
buggy tires an
grates, in fact
any kind. We
old copper, I
wax. Highest I
S. S. Bir
0 The Right DI
0 For Medicines
Four Schools: Arts, Law,
System of Wide Election.
0 The Right D
$ For a Squa
+ Gilder, Weeks
year. H g gade of wor.Hg h sta
Csevatory advantagese in EMecic
prvRemnarkable health record; only on
Close personal attention to the health a
pupil. High standard of scholarship.
public occasions. CHARGES VERY
adr24th Annual Sesion will begn Se
t J. COME
d axles, old
old iron of
3ciences and Teachers.
Over 2oo boarding pupils last
ndard of culture and social life.
Advanced courses in Art and
lights and other modern im
Sdeath among pupils in 23 years.
ud social dvelopmealik oevery
pt. 13th, 1905. For catalogue
[)ES, A. M.,
PRESIDENT, Littleton, N. C.
!Y. S. 03