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ROB SUMTEH WATCHMAN, Eatabl
onsolldated Aug. 8.188
Cbe f?atrbnuni anb Soutbron.
Published Wednesday ami Su turd ay
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DISrtlSAIIY CLAIMS ADJUSTED
IWIND-UP COMMISSION PUBLISH?
ES ITS FINDINGS.
By So*stag Accounts and Elimination
Of Overctuirges, Graft and Fraud
The State Haa Been Saved Nearly
Half BliMoti DoUara?The Truth
About Carolina Glass Company's
Columbia. Nov. 18. ? About a half
million dollars represents the sav?
ing to the State of South Carolina by
scaling.** from dispensary claims and
overjudgment* against Arms doing
business with the old State dispen?
sary- The work of the winding up
commission was practically conclud?
ed last nlfcht at a late hour and
Judgments rendered In all claims be?
fore It save that of the New York
and Kentucky company, which will
be considered further today.
A history of the old State dispen?
sary ay*tem and Its graft Is Included
In the commission's final report.
That the whiskey firms failed to
comply with the laws of the State in
regard to the aale of whiskey, vari
oua devices were used to prevent
competition, that the board of direc?
tor* of the dispensary failed to ad
Charges brought by the commission's
The firms that fought the State in
the litigation In the Federal courts
are taxed costs amounting to $21.
626. The net amount of claims con?
sidered at this sitting of the commis?
sion was $430.000. and the deduc?
tions amounted to $226.000. This
dock not Include the over-Judgments
and the decrees formerly i endend.
Th original fund was $630,000.
Of consldrable local Interest and
of much interest also throughout 'che
State Is the claim of the Carolina
Glass Company, a Columbia concern.
The amount claimed to be owed this
firm by the State was $23,013.75,
which is completely wiped out by the
commission's findings and an over
Judgment rendered for $28,419.24.
The over-charges found against this
concern are $51.482.99, and It is by
deducting the original claim from
this amount that the overjudgment is
found.- The commission issues a sep?
arate decree against the Carolina
Olass Company and goes Into the de?
tails of what was alleged to be a mo?
nopoly of the sale of glass to the old
State dispensary. The total sales of
the Carolina Olass Company to the
State aggregated $514.329.90 before
the year 1906.
A large amount Is represented in
the list of overjudgments and mem?
bers of the commission and Its attor?
neys state that the firms will be pro?
ceeded against in the courts to re?
cover the various amounts charged
Mr. Felder stated that the so-call
? n.m i. m e fund has already reach?
ed Iff* Iff,a#| mark. Thla is the
gaasjaf paid back by firms not repre?
sented In the list of claimants but
who were charged with overcharging
< ?tu* of the largest claimants and
one that came in for aomo scorching
when the original commission met Is
the Anchor Distilling Company and
Ullman A Co., two firms classed by
the commission as one concern. An
overjudgment of $30,621.55 Is found
against this i omblnatlon. Including a
proportionate share?$4,500?of the
costs In the case.
William La nanan A Sons are
charged up with $23.563.46, al?
though their claim against the State
was only $5,916.54. The commission
went back of the dates represented
by this firm's accounts lr the claims
against the State, as did the commis?
sion In a number of other cases.
Flelschmann & Co. and Or-ori
Seligman Company are treated as
one concern, and the $70,000 claim Is
reduced to $45.646.30. This company
admitted overcharges in affidavits.
Clark Bros. A Co., another large
claimant, Is given $63,780.96 on a
Ished April, 1850.
'Be Just a
I claim of $60,383.71.
The commission in its special re?
port in the claim of the Carolina
c.la.-s Company finds that the ofiieers
of this concern entered into a con?
spiracy to defraud the State of South
Carolina by defeating all competition
in the sale of glassware needed.
The commission refers to a bid of
the company In September, 1902, to
furnish 60 cars of glass bottles at
prices ranging about 10 per cent. In
excess of the prices paid to Flaccus
A Co.. notwithstanding the fact that
other bids were filed. That also the
Flaccus contract, when purchased,
was for the purpose of stifling com?
petition as all moulds of the Flaccus
Company were turned over to the
Carolina Glass Company and the for?
mer had no facilities for filling or?
It Is also charged that at several
quarterly purchases other competi?
tive bids were suppressed and the
Carolina Glass Company was award?
ed contracts. That after December,
1902. and until 1906, when the con?
tract existing between the State dis?
pensary board and this company was
canceled, this firm maintained a com?
plete monopoly of all business for
glass and raised prices from time to
time much above the fair market
prices for the goods sold. Also that
at the time of the passage of the con?
current resolution canceling the un?
filled portions of the contract there
were* outstanding contracts at exor?
bitant prices for more than 200 cars
of glass bottles at an approximate
value of $200,000.
The commission states that accord?
ing to the testimony of one of the
officers of the glass company tho
State saved more than $50,000 when
comparison :s made with prices paid
for goods subsequently purchased.
It is also charged against this firm
that goods were sold of the ss.me
quality, si/t and character as that
sold the State dispensary in other
States and in other parts of this State
Trom 20 to 25 per cent, lower than
the price paid by the State dlspen
I* T^/gtfrttng is nas- fpllows }n the,
case of the Carolina Glass Company.
"We, therefore, find that the cjn
t.v ts made between the Carolina
Gloss Company and U *? board of di?
rectors of the State dispensary are
e ?: i r> to the law? of the State and
against public policy and for those
reasons null and void, and that the
Carolina Glass Company should not,
as a matter of strict law, be entitled
to recover any sum of money from
the State of South Carolina on ac?
count of said contract, even If the
State had no offsets against them
whatsoever, but the commission fur?
ther finds that It should determine
the matter on equitable prlncipels
and fix the matter of liability on a
'quantum merult' basis and that the
prices at phich the Carolina Glass
Company sold to the State dispensary
the glassware manufactured by It
ranged throughout the entire period
of their transactions with the State
dispensary except for the years 1906
and 1907 at about 10 per cent, above
the fair and reasonable market price
for said goods. The commission finds
that the total amount of sales, after
making all proper corrections there?
in, made by the Carolina Glass Com?
pany during the entire period of the
transactions with the State dispen?
sary up to the time It was abolished
was $613.437. Of this amount the
sum of $99,108 was for goods sold
during the year 1906, and the short
period during 1907, during which the
dispensary was conducted so that the
total sales made by the ?Carolina
Class Company during the years pre?
ceding the year 1906 was $514,329.90.
The commission find.i that begin?
ning early in the year 1906 as the re?
sult of a legislative investigation
made by a committee appointed by
the general assembly of the State of
South Carolina, and the resolutions
adopted by the general asssembly,
relating especially to the contracts
\% Ith the Carolina Class Company,
hereinbefore r< ferred to, the com?
pany was forced to and did lower its
bids to prices which during the year
and the short period of 1907, during
which the dispensary was operated,
were substantially in accord with the
fair and reasonable market price of
the goods sohl during that period;
but the commission finds that dur?
ing the y ars preceding 1906 the ov?
ercharges made in excess of the fair
and reasonable market prices f<?r
the goods sold was $51.432.20. which
should 1>.. and |g hereby offset against
the claim In favor of the said Caro?
lina Class Company to wit; its claim
of $23.011.71, which being deducted
from the amount of said overcharges
the commission fmdl said Carolina
Glass Company to be Indebted to the
State of South Carolina in the sum
It was stated yesterday that tho
nd Fear not-~Let all the ends Thou Air
'ER. S. 0., SATURDi
case would probably be appealed to
the Supreme Court along with a
number of other cases ruled on by
The following are the claims and
the amounts to be paid the claim?
Fleischmann . $70,885.87 $35,645.30
Schlitz B'w'g Co 24,682.23 18,813.73
Big Springs Co. 25,006.78 8,515.75
Lehman & Co.
Brewing Co. .
Moyse Bros. . .
E. A. Saunders
Oeo. A. Dickel
& Co. 2.300.00
Clark Bros & Co 66,383.71
Green River Dis?
tilling Co. . . 3.648.42
Richards & Co. 1,175.00
Totals . . .$303,555.63 $215,178.36
In more than half the claims there
were overjudgments rendered in fav?
or of the State by the commission.
As stated these may be collected
through the courts. The commission
states in its findings that the mem?
bers have made a careful investiga?
tion of the business of the old State
dispensary and also all of the evi?
dence taken before the legislative in?
Due and formal notice, states the
decree, was given to all creditors to
produce before the commission their
books of . account and other records
and correspondence disclosing the
transactions between the creditors
and the State dispensary, and In a
few instances some of the creditors
complied with this demand and pro?
duced their books and records In part
at least for the inspection of the com?
mission. The commission also heard
oral testimony and received affidavits
from members ofkwhiskey concerns.
The commission states that several
of the creditors entered irfto a Con?
spiracy with members of the boards
of directors to cheat and defraud the
State with the assistance of some of
the memebrs of the board md goods
were sold at a price large a excess
of the market value, the officers or
agents of the concerns and members
of the board making use of the funds
In corruption and bribery.
It Is also stated that many of the
claimants did not comply with the
law in that:
1. They resorted to various de?
vices to destroy competition.
2. The law as to advertising for
bids was so worded as to prevent
competition Instead of promoting it.
3. That bids submitted upon
which awards were made were exor?
bitant as to prices with the knowl?
edge and consent of the board.
4. That the claimants violated the
law in maintaining agents ant' solici?
tors in the State to obtain contracts
for the purchase of their goods.
5. That in many cases the bonds
vrere furnished on awards given.
6. None of the claimants filed at
the time of making bids an analysis
of the liquors for sale.
The commission rules that the
claimants have all violated the law,
but thinks that it should deal with
petitioners uopn equitable principles
adn make such settlement as will be
fair and just. It therefore finds that
it should compensate each claimant
for goods actually sold and delivered
the State dispensary during the
whole course of dealing by paying
the real value of the goods after de?
ducting from the claims of some of
the claimants certain fees and expen?
ses Incurred by the commission in
defending the recent suits.
It is also ruled by the commission
that certain claimants who filed bills
In the Federal court asking for in?
junction against the commission in?
clude the firms of Garrett & Co.,
Plelsohmann & Co., Wilson Distilling
Co., Gallagaher & Burton, Jack Cran
ton Company. The bills brought by
Plelsohmann, the Wilson Company,
ths Jack Cranston Company and (ial
lagher & Burton were consolidated
Into one action into which Garrett &
Co, afterwards intervened, followed
by Uio Big Springs Distilling Co., Ull
man Jfc CO., Anchor Distilling Co., li<
lair Distilling Co., Richard & Co., and
ths Xew York and Kentucky Com?
After reviewing the victory won by
the State of South Carolina the com?
mission calls attention to the fact
that the light carried to the United
States court cost $21,526.17 and con?
siders the State damaged to that
amount. The various companies*
mentioned above are assessed pro?
portionately this amount.
ns't at be thy Country's, Thy God's an
\Y. NOVEMBER 20.
The following overjudgments were
found by the commission:
Cook & Bern
. 94.89 36.553.63
& Sons. ... 5,916.54 23,563.46
H. & H. W. Ca
therwood . . . 4,227.95 24,070.00
Acme Bwng Co. 674.80 14,965.20
Gallagher & Bur?
ton . 4,845.06 18,041.26
Strauss, Pritz &
Co. 7,980.56 12,419.44
Co.. 487.50 4,016.50
W. W. Johnson
Co. 1,945.99 1,091.64
ing Co. 409.50 160.00
Ullman A Co.
(Anchor Co.) . 36.926.78 30.621.55
Jack Cranston Co. 5,951.50 1,064.42
Rheinstrom Bros 296.08 103.92
Barbee & Co. . 109.58 409.44
Garrett & Co. . . 1,757.39 21,397.20
Wilson Dist. Co. 2,874.73 347.17
King & Co. . . 6,395.84
Total . . . .$80,594.69 $189,365.81
The following were paid by tin
commission on March 6, 1908:
Paul Jones & Co.
Anheuser-Busch Brewing Co. . . .
Augusta Brewing Co.
Frank G. Tullege Co.
Live Oak Distilling Co.
J. A. Magnus & Co.
Old "76" Distilling Co.
J. F. Bickman.
belroy Distilling Co.
H. A. Theirman.
D. Eacks & Son.
Marin, Hart & Co.
H. Rosenthal & Son.
The following is a summary show?
ing the amounts saved to the State:
Overcharges in list of
firms to whom money is
to lv rfcid by State.... $ 8S.377.17
Claims which come to the
State along with the
The 1908 overcharges.. . 25.356.21
"Conscience" money .. .. 50,000.00
Total saved to the State
and to be recovered.. $433,692.91
The settlement of the fees of the
attorneys interested in the case will
be brought up today.
It should be understood that in the
case of overji.dgments the original
claim thus ccmes to the State also.
In general the charges against the
firms against whom overjudgments
were found are that these firms over?
charged the State and paid rebates to
members of the board and their
agents. The comments of the com?
mission on the King & Co. clam are
interesting. The commission states
that this firm failed and refused to
comply with the mandate to produce
records, etc., and the total claim Is
wiped out?amounting to $6,395.84,
but no overjudgment is found In the
case of this firm.
In the closing paragraph of the de?
cree Chairman Murray of the com?
mission is directed to pay the ac?
counts as set out in the findings of
the commission. The members of
the commission are: Chairman, W. J.
Murray, of Columbia; Avery Patton,
Greenville; John McSween, Tim
monsville; J. Steele Brice, York; A.
N. Wood, Gaffney.
Four claimants escaped the scaling
of the claims. The commission states
In regard to these that these "par?
ties have no part in any of the fraud?
ulent transactions connected with the
conduct of the business with the
State dispensary and the chairman of
the commission is authorized under
proper warrant to pay the claims."
The four claimants are: C. P. Fish
burn. $70.50; S. S. Pierce ft Co.,
$622.13; Acker Merrell ft Condit Co.,
$645.82; E. LaMontague & Sons,
LIPTON WILL CHALLENGE.
English Sportsman \\ ill Again Try to
Lift America's Cnp.
New York. Nov. 17.?Sir Thomas
Lip ton will challenge for a race for
the America's cup to be sailed in
1911. Sir Thomas made this state?
ment just before sailing for Europe
today on the steamer Lusitania.
Sir Thomas has been here for sev?
eral weeks to learn the attitude OL
members of the New York Yacht
Club on the question of modification
of the rulei governing the Amerca'.
cup. What assurances, if any, he re
celved Is not known.
Beaufort is to have a new tele
d Tr THE TRUJ
1909. New Seri
MITCHELL NQ1 SUBDUED.
stiks TORONTt. OONVKA'TIOX
WITH RINGING SPEECH.
DeclMCi for Right 10 Bestow Pat?
ronage Where He Prefers?Asserts
Pride in His Country.
Toronto, Oont., Nov. 17.?Indors?
ing a report of the committee on boy?
cott, John Mitchell, one of the three
officers of the American Federation
of Labor, who are under sentence for
contempt of court, made a dramatic
speech to the convention of that or?
ganization at today's session. He de?
clared that as far as he was concern?
ed, regardless of consequences, he in?
tended while at liberty to declare for
the rights guaranteed him by the or?
ganic laws of his country.
The report which drew forth
Mitchell's speech, and which was
adopted by the convention, among
other things declared:
"We say that when your cause is
just and every other remedy has been
Amount Amount Amount
of Claim. Allowed, saved State
$21,176.63 $14,927.88 $ 6,248.75
19,551.00 9,504.09 10,047.00
1,615.00 1,211.25 403.75
1,135.94 1,049.69 86.25
29,922.22 26.190.82 1,781.40
18,204.24 16,648.76 1,555.48
3,662.83 3,208.33 454.50
2,774.70 2,561.22 163.4S
40,008.33 38,004.17 2,004.16
4,509.51 4,238.94 270.57
9,228.30 8,674.60 553.70
9,021.33 8,480.05 541.28
15,847.44 15,500.34 341.10
4,524.11 3,619.29 904.82
$179,181.67 1153,825.43 25,356.24
employed without result, boycott; we
say that when the employer has de?
termined to exploit not only adult
male labor, but our women and chil?
dren, and our reasoning and appeal
to his fairness and his conscience will
not sway him, boycott; we say that
wfien Tab'bT^fias' Tbe^h"r o"p"$re'ss<'rl.
browbeaten ani tyranized, boycott;
we say that social and political con
( ditions become so bad that ordinary
remedial measures are fruitless, boy?
cott, and finally we say, we have ?
right to boycott and we propose to
exercise that right, in the applica
cation of this right of boycott, I?
paraphrase the president (Gomper<)
we propose to strive on and on.''
The convention broke into loud
cheering for Mitchell as he conclud?
ed and thw were cries for "Morn
s ?n." The secretary did not resnan.l.
President Gompers was absent.
Mr. Mitchell said he realized that
every statement made by those on
the convention floor, and especially
by those who on next Monday will
have to deliver themselves to the
courts, is bein? closely scrutinized.
"I want the people of the United
States to know my position," he said.
"I shall not speak defiantly; but the
the consequences what they will. T
shall not surrender any right guaran?
teed to me by the constitution of our
country. I am not sure how much
mental and p lysical suffering will be
necessary to make me submit, but if
1 know myself, not any amount of
suffering will persuade me that 1
have not the right to spend my mon?
ey where I please or that I have
net the right to write and speak a::- I
plvase, being responsible under the
law for my acts.
"Whether the boycott be a benefit
or a detriment, each man must de
cide where be will bestow his patron?
age. I maintain that my patron. ^
is my own and no merchant has a
proprietory right to it.
"I understand that cognizance is
being taken at Washington at the
utterance of men on the floor of the
convention and I want clearly to
state my position. I propose in the
future, as I have in the past, to ex?
ercise the rights secured to me by
the fathers of my country; and I pro?
pose If I am sent to jail to declare
again when I come out that I shall
not for myself purchase any product
of the Buck's stove and Range Com?
"I repeat that so far as 1 am con?
cerned, and let the consequences be
what they may, 1 Intend while at
liberty to declare for the rights guar?
anteed to me by the organlo laws of
my country 1 am proud of being an
Mr. Mitchell said he had grown op
as an American?witu s stepmother
bo poor thai she could not buy bread,
and related how he had crept out
of bed at night to get his l'athei s
soldier coal to keep him warm.
"But 1 want to see the word Ameri?
can stand for all the sentiment that
is symbolised by the fiag of our
country," he continued. "1 want real
K SOUTHn< >x, Established June, ISM
les?Vol. XXX. .No. 25.
liberty. I don't believe in the liberty
enunciated by some of our courts
that men and women should have
the right to work themselves to
death. I don't believe in the liberty
enunciated by Judge Tuthill, of Chi?
cago who declared unconstitutional
the ten-hour law for women, and by
that act compelled them to work 14
hours a day."
Mr. Mitchell said he believed the
present proceedings would bring
home to the people the necessity of
working in concert. "Is the time go?
ing to come on our continent when
the badge of faithfulness to labor
must be the brand of imprison?
ment?" he said in conclusion. "Sure?
ly I hope not. I hope that the gov?
ernment may be so conducted that
no citizen may feel that he has not
been given Justice and an equal right
with every other citizen."
The revocation of the charter of
the Ohio State Federation by the ex?
ecutive council for admitting to its
membership seceding locals of the
electrical workers was approved to?
day. The convention then adopted
the report of its committee on laws
that the appeal of the Ohio body be
dismissed. The executive council was
directed to attempt to unify the trade
unions of Ohio in the new State Fed?
The plan adopted of settling the
disagreement among the electrical
workers was recommended to the con?
vention by its committee on laws. It
called for the appointment of a com?
mittee of thr ee trade unionists to call
the proposed convention of the elec?
Annual Proclamation Is Issued by
Go v. Ansel.
Columbia, Nov. 18.?Gov. Ansel
yesterday ,in accordance with the **?
usual custom, issued his Thanksgiv?
ing proclamation, naming Thursday,
November 25, as a day of general
thanksgiving He gives many rea?
sons why the people of South Caro?
lina should .give, ^n^j.^gMsaBglMS
has had an unusually prosper^ - year
and in all lines there are Indications
of many new enterprises and of older
corporations enlarging their plants
and output. Therefore the procla?
mation will be read with Interest by
the people of the. State. It Is as fol?
"Another year has rolled around
and another mile-stone in the com?
putation of time has been reached
and we come once again to the har?
vest time and the day of thanksgiv?
ing. In conformity therefore, to the
long established and beautiful cus?
tom of observing this one day as a
day of thankfulness and joy, I, M. F.
Ansel, governor of the State of South
Carolina, do hereby designate and
appoint Thursday the 25*h day of
November, A. D. 1909, as a day of
"The people of South Carolina
have many things to be thankful for.
The fields have yielded their fruits In
good measure; we have been .-pared
from pestilence and famine; we have
had no epidemics of sickness; we
have had peac-' with all nations and
a fair return for all our labors. We
should be thankful also for the full
measure of religious liberty that we
enjoy and that we can 'worship God
under our own vine and fig tree with
none to molest or make us afraid.'
"Let all the people, therefore, put
aside for the day their usual work,
assemble in their churches, as well
as in their homes, and give thanks to
God for his many tokens of love and
kindness to us as a people and as a
State. Let us not forget the poor and
needy and the various orphanages
within the State, where the fatherless
and motherless ar cared for, but let
us remember them in our prayers ss
well as with our means and thereby
bring a little sunshine latO their lives.
Let us a'<o pray for a continuance of
God's grace and good 11088 to us in
the coming years.
"Given under my hand and the great
SI al of the State of South Carolina
at the capital in the city of Co
lumbla this, the 15th day of No?
vember. A. D. 1909. and of the in?
dependence of the United States of
America the l?4th.
"M. F. Ansel.
"By the governor:
"R. If. McCown,
"Secretary of State."
The new $10,000 armory of the
Georgetown Riue Guards was dedi?
cated Wednesday. Gov. Ansel and a
number Of prominent public men
The Spartanburg Broom Works
and seven cottage s adjacent were
burned Wednesday. Estimated loss