Newspaper Page Text
VHS SUMTEH WATCHMAN, Eetabll
n ?< Muted Aug. 2.188
C be Wlattbman anb jSoutbroa
Published We*lne*day and Saturday
08TEEN PUBLISHING COMPANY
8UMTBR. S. a
t \ * Tertua:
? Lit oar annum?tn advance.
One Square first Insertion.$1.00
Brer? subosquent insertion.SO
Contracts for three months, or
senior will be made at reduced rates.
All communications which sub
sot 11 private it .terests will be charged
for no ad vertu entente.
Obftoarte? and tributes of
Sjttl be charged for.
OIL COMPANIES FINED.
Calhorn i of Texas Place* Two
hi Recelver'a Hands for
A net in. Tex. Oct. 17.?Judge Cni
of the district court here today
an 01-dar sssssstng that 8e
Oll Oeeipnny with penalties of
fa* a day fro si July if, l.ei. to No
? .ItllT, when an Injunction
snipping alleged violation
Of Use nwtl-traet lawn. The fine ag
$7s, >?#. The charter was
nan Use company perpetuat?
io- enjoined from doing bnalneas In the
The Navam? Refining Company waa
IM 4alsp from October It,
. to November ?. 1?07. amounting
?l!*f. The charter waa also can
oelled and th# company ousted.
Out Collett of Austin waa appoint
04 roeelver for both oompanlee with
t> advertise the proper
for sale on December 7. A judg
for MOOOO against the Standard
Company of Indiana will be en
In gf rnishment proceedings
the Oulf. Colorado A Santa
n of |7l(tM against the
Tank Line Company will be
If tie roeelver oan dispose
propei V in. hand to pay the
Woman hi America to Fly in
College Pari:. Md., Oct 27?With
Isar sains tt?d tightly about her
gssklees to keep them from fluttering
Ml the breese Mrs. Van Deman. wife
ef Capt. Ralph H. Van Deman. 21st
Infantry, U. A., occupied the pas?
senger's see/ bealde Wilbur Wright
when be ascended In the govern?
ment's aeroplane here today. For four
minutes she experienced the sensation
of soaring In the air. sometimes as
hfsjh aa iO feot above the ground. ThU
van the flrst time a woman made an
aaeension in a heavier than air ma?
chine in the Jolted States, the Wright
brothers having restated a multitude
ef femlnen Importunities for aerial ex
"Oh." exclaimed Mrs. Van Deman
when she returned to the ground.
I knov what makes the birds
UfluU. U im and Humphreys had
so far progressed with their mastery
ef the government's aeroplane today
that Just before the closing of the af?
ternoon's work Wilbur Wright step?
ped to the rear and allowed the two
officer* to oversee all details prepara?
tory to tho aaeension. The officers
have progressed so far that Mr.
Wright toda; announced his Intention
Of abandoning them for several days,
allowing them to use the airship at
their discretion. The flights will con?
tinue here ai -usual.
The Pt<otit In Advertising.
(Roanoke, Va.. Evening World.;
Do business people generally appre?
ciate the value of advertising? If a
merchant has anything to sell, is it
?ot his first duty to let the public
know just what he offers? If goods
ee articles of value are lost, will not
the advertl* ng of the fact, with de?
scription of the lost article, aid in Its
recovery? The value of such adver?
tising has boon UM often demonstrat?
ed to admit <>f doubt now. Printer's
tak wisely u*ed Is the safest and sur?
est ally of 'he merchant, the manu?
facturer, tho man who has any ar?
ticle of vali e of which he wishes lo
The mar In buslnnss wie? toftnof
afford to advertise will soon be put "?'
business. The dally newspaper Is th ?
rheapest and most effective solic itor
for the pernon who uses its column*.
No man wh > hus anything ofruhsOtO
sell or who wants to buy anything not
easily found can afford to Ignore It.
About 90,000 tons of du ' ind re
fuae Is taken away iu barges from
London every year.
Ished April, 1850.
'Be Just an
COLUMBIA BANKER QUESTIONED
AT LENGTH YESTERDAY.
Attorney Felder Puts J. P. Matthews
Through a Gruelling' Exnnilnatlon
In Regard to Dispensary Transac?
tion* and Otherwise-?\Vit lies* Of?
fers Five Thousand Dollars for
Proof That He Accepted Commis?
Columbia. Oct. 27.?From the line
of testimony that was entered into to?
day by the disepnsary winding-up
commission It becomes apparent that
the affairs of the dispensary will be
Investigated further back than the
last board's regime. There has been
.1 general crltclsm floating around the
State that the commission has under?
taken not to go into the details of
transactions sarlier than the year 1 906
and upon matters touching the board
of directors, of which Wylle, Rawlin
son and Black were members. But
today's happenings tend to discredit
the rumor, and it begins to look fis if
the commission's Investigations, as led
by Col. Felder, will probe Into many
Interesting sidelights of the old dis?
pensary regime. How far this Inves?
tigation will proceed cannot be stated
at this time, but It certainly looked
today as If the foundation was being
laid for deep digging.
. The names of H. H. Evans, the one?
time chairman of the board; L J.
Williams,'John Black, James Fan.urn,
Jno. T. Barley, the Fleischmann Com?
pany, H. H. Aull, formerly president
of the SUte Press Association; Editor
Koester, of the Evening Record, and
many others were brought Into the
discussion this morning in the course
of the examination of Mr. J. P. Mat?
thews, a Columbia banker, who was
put oa the stand today.
There wu? some mutters either
brought out or hinted at that have
beea touched on In connection with
the dispensary investigation before
and since the recent trials. The Intro?
duction of John T. Barley Into this
Stats was practically laid at the feet
of the bank cashier. Letters were
shewn la which Mr. Matthews Bad
written to the Fleischmann Company,
telling this concern that he had met
with Mr. Earley and "understood that
he had made certain arrangements
here in reference to doing business
with the State of South Carolina In
selling whiskey to the dispensary."
What these "arrangements" were Mr.
Matthews avowed he knew no hing
of, and did not recall that Earley- had
told him what they were.
Other Interesting sidelights wer? the
questioning along the line that recall?
ed the now famous "haul" of Briggs
Wilson, when one of the men who was
luteretted in the situation is said to
have gone Into Georgia to bring back
this person, who was charged with '
having made the quarterly collections
of rebates and went away with them.
The "midnight fiasco," when $200.
00t or more was paid out in a jiffy,
$5,000 being the consideration alleged
to have been given the members of
the board; the endorsement of notes
for members of the board and for
others interested in the whiskey
deals; the support of candidates for
election on the board; these and oth?
er matters of the old State dispen?
sary system were touched upon today
in the examination of Mr. Matthews.
To most of the questions Mr. Mat?
thews replied that he did not recall
the circumstances. "I don't remem?
ber" was the expression oft repeated
by him today. The letters were his
own, he admitted, and even after
reading them, he could not recall the
information contained in the major?
ity of them.
The point that was mostly stressed
by Col. Felder was a meeting that
was said to have been contemplated
b* Sam Lanahan, of the firm of Wil?
liam T*unahan & Sons, Baltimore; L.
J. Williams, <?f the dispensary board
and J. p. Matthews. The letters in
reference to the meeting were in evi?
dence, ami telegrams sent by Mr. Mat?
thews on thf? subject were on hand, but
Mr. Matthews could not tell what was
tlx* object of tiiis meeting, and con?
cluded also that It was never held.
There may be further light upon th'
In the course of the examination
Mr. Matthews, who Is one of the best
known bankers in the State, and who
Is held by all who know him to be
above reproach) constantly tasked Col<
?wider Uli question If he charged that
lie had received commissions for butl?
I (Ol ii whiskey houses referred
to in th.- questions' asked by the attor?
ney, At one stage Col. Felder said:
"If Mr. Matthews desires It 1 will tSll
what my information is on that point.
I have not Ohafgsd him with receiving
rebates. I am acting now in the ca?
pacity of an attorney and I do not be
d Fear not?^Let all the ends Thou Alna
TER. S. 0., SATTJRD
Heve in an attorney taking the part
of a witness and testifying while act?
ing in his professional capacity. But
if it is so wished, although I am not
desirous of telling what I am in?
formed, I will do so."
The point was not pressed, and it
was not told at the session today what
sort of information it was that Col.
Felder had. The statement was re?
peated several times and at the con?
clusion of the examination Mr. Mat?
thews said that he would pay the ex?
penses of the men who would come
here and testify that he had received
rebates or commissions on account of
the State dispensary matter. But Col.
Felder again stated that he had not
so charged, and tne matter was drop?
ped. At another time, Mr. Matthews
said: "I will give you $5,000 if you
can prove that I received commis?
sions." Some portion of this side?
light of the examination was conduct?
ed under rather tense circumstances
indicating just a tinge of excitement
on the part of the witness. Mr. Mat?
thews said he would give a great deal
to be able to clear up some of the
matters that had been brought to his
attention during the examlnaion, and
that he was going to do so.
Mr. Matthews, who is cashier of the
Palmetto National Bank of this city,
the bank formerly being known as the
Palmetto Bank and Trust Company,
was placed on the stand Just after the
commission had held a brief execu?
tive session, during the course of
which it was discussed as to whether
examination of Mr. Matthews should
be in open or secret session. During
the days of the State dispensary, as
has already been brought to the at- [
tentlon of the public In the recent
trials, the Palmetto conducted con?
siderable business with the whiskey
men in this State. It was concerning
some of these transactions that Mr.
Matthews was questioned today.
In 1903 letters and telegrams were
written by Mr. Matthews to Baltimore
with a view, it appeared, of arrang?
ing an appointment at which should
be present Mr. Matthews, Mr. Sam
Lanahan and Mr. I* J. Williams, In
Baltimore. It Is strt^d that this meet- |
ing never was consummated, and that
something prevented tHe gathering of
these three men.
Why this meeting was to be held
Mr. Matthews says he does not recall,
but "it was not for the purpose of
making any deal to sell whiskey in
South Carolina." Witness at flret did
not recall anything about the letters
shown him, and did not know why the
meeting was mentioned in the letters
Other matters drifted Into during
the course of the questioning, and
about w...ch Mr. Matthews testified
were endorsements of notes of E. R.
Aull and O. R. Koester, the latter be?
ing referred to by Col. Felder as the
editor of "the official organ of the
plunderbund." Witness did not re?
call the specific matters, but did know j
that there were transactions in which
Mr. Farnum and those mentioned
above were interested. That Farnum
bought stock in Koester's paper.
Numerous letters were put in evi?
dence. One written December 18, |
1904, contained the sentence: "The
writer knows as much as anyone
about the dispensary." This letter
was from J. P. Matthews to the Stan- j
dard Distilling Company, and witness
explained that he did know about the
payments, etc., for which he looked
out in behalf of his customers at the
The note of J. M. Walker, a former
member of the legislature, was
brought up. This note was endrosed
by Black, and in the bunch of letters
was a notice to Major Black to "call
tomorrow and arrange to pay a part
of this note." Offers of cases of whis?
key were mentioned, but were not
stressed, as this was merely incidental
to the main issue.
In the election of John Bell Tow ill
witness said he did take part to the
extent of speaking to his friends, and
that he "perhaps wrote some letters.
I don't recall just now." A letter was
produced showing that he had writ?
ten: "I have spoken to quite a num?
ber of people. I am doing all I can."
A letter to Hub Evans said: "I am do?
ing everything I can for your elec?
tion," etc., etc,
A letter to Paul CJarrett, the mak?
er Of wines at Norfolk, the man who
sued the Statt- of South Carolina in
connection with the claim against it
and upon WhOSS bond witness went,
said: "There will be quite a shake
up," and words to the effect that "you
are solid, "and the "writer will be able
to do you mure good than in the
Witness explained that he could not
say that the "do you more good than
In the past" meant more than to ren?
der such service as the prompt col?
lection of drafts, etc., such as came
in the course of the bank's business.
is't at be thy Country' *, Thy God's am
AY. OCTOBER 30, It
There was an item of $1,200 to $1,
300 that was shown as having been
overpaid to Block, Briggs Wilson hav?
ing collected the money, Block claim?
ing it. Upon this transaction witness
did not recall making the statement
credited to him that "this committee
is in behind you and this committee
would have been delighted to get hold
of some things I know on this transac?
tion," or words to that effect, the com- '
mittee evidently referring to the in
vestigation that was then going on by
the legislative committee.
That $30,000 paid over by the Bern
helms was asked about. Witness said
he read about it and had heard that
only $15,000 of the money reached
this State. This is explained by the
contract with attorneys, no doubt, if
Mr. Matthews' information as to $15,
000 reaching this State is correct.
The examination of Mr. Matthews
assumed a wide range and Col. Feld**
er jumped from one matter to anoth?
er without apparently concluding one
subject. Of course there must have
been "method in this madness," but
it naturally makes the grasp of the in?
dividual matters referred to very
January 13, 1904, a letter to J. W.
Bernhaim from witness stated that
there waa quite a stir in dispensary
politics, and that "we would not like
for you or your Arm not to be taken
care of in the way we think best."
Witness said he would do anything he
could to get the business represented
by this and other Arms.
Touching the "appointment" at
Baltimore, the following extract was
"There is quite a stir up here at
present in reference to the State board
of control, but I see no reason why
we cannot All the appointment and
look out for our Interests at both ends
of the line."
To this reading witness said: "I
never made any appoinment." But
Mr. Matthews explained that possibly
Williams had suggested the meeting,
and that in consequence of this he
wrote to Baltimore suggesting, aa the
letter showed, the meeting.?
Witness had no idea what "both
ends^ f and "shake up" in the _teUer_
meant. Nor could he tell why he was
to have gone to Baltimore. Later a
letter read: "Williams is sick and we
cannot come. The board will hold a
meeting Thursday. We may have to
wait until later."
Commissioner Patton asked witness
the direct question If he had ever re?
ceived any commissions. The witness
made the monosyllabic reply: "No.'*
Witness admitted that he supported
the "ticket" that was elected In 1906,
and that It was his friends that went
into the office of me board of dispen?
Witness had no knowledge of im?
proper relations between Earley and
Black, that he "brought none of them
There was a little transaction about
which witness said he knew nothing,
but which Is an Interesting sidelight
of the dispensary doings. Towill is
said to have sent money back to W.
D. Roy, the whiskey man, when the
commission got in behind him. Be?
ing told of this matter witness said:
"I swear no man ever told me he re?
ceived rebates." He did not recall
having seen Roy and Towill together.
Coming down to a specific question
Col. Felder asked Mr. Matthews if he
recalled a transaction something like
this: Don't know the exact amount
involved, but W. D. Roy sold liquors
to the State board, and he gave cer?
tain commissions to John Bell Tow?
ill for goods bought and not received
but shipped back. "Was the substance
of this transaction stated to you?"
asked Col. Felder of witness, who re?
plied that may have but he did not
recall it, in spite of the fact that Col.
Felder put the question in the man?
ner that he makes so effecive: "Sup?
pose both should swear that that hap?
The . amount was either $2,000 or
$2,700. and witness did not know what
Towill told him he wanted With the
money when he came to the bank to
get it out. The inference from the
statement of Col. Felder was that the
$2,000 or $2,700 was returned to Roy
by Towill. It is "a well known fact
that Mr. Roy has told some things In
connection with the dealings during
the dispensary regime.
February 6, 1904, witness wrote to
Fleisc h mann: "I have met your sales?
man, Mr. Earley. I understand that
he has made certain arrangements
here in reference to selling the State
board of control liquors for the dis?
pensary." It was upon these words
that much of the examination of Mr.
Matthews was baaed. The question
was: What was meant by "arrange?
ments." Of course, In the light of
what has been brought out concern?
ing the State dispensary it is now
known that these arrangements* re
1 Truth's." THE THUJ
ferred to the payment of rebates, etc.
But Col. ,-Felder's object today
was to find out Mr. Matthew's knowl?
edge, if he had any at the time, of
the meaning of "arrangements" in
that letter. Witness persistently and
repeatedly declared that he did not
know now what he meant then, unless
it should mean the arrangements for
the getting of business. In fact, the
matter was not explained. Upon the
law as to the sale to the dispensary j
Mr. Matthews stated that "he ought
to have been informed," and added:
"No man made statements to me as
to payment of graft." In this same
letter it was added: "And that we
shall have the pleasure of arranging
bond for your company, etc."
Q. Did not Earley come to South
Carolina, and was he not Introduced
by you to your friends, and in con?
sideration of this the firm was to gtve
you their account?
W itness stated that he had not in?
troduced Earley that he recalled, and
that he did get the business of making
Earley was sent down here just af?
ter the electicn of the board, of which
H. H. Evans was chairman, and John
Bell Towill and L. W. Boykln were!
"What were those arrangements?'
Col. Felder asked again.
He added that this was written be?
fore the board actually met, and be?
fore there were any bids. "I don't
know," was the only reply of witness.
Q. You swear Earley didn't tell
A. No, I couldn't swear.
"I would give considerable to know
what those words meant" said Mr.
Q. Did Earley tell you that he had
gone to your men and agreed to pay
A. No, he never told me about
In a letter to Paul Garrett witness
had written: "Everything looks nice
for our friends. The election comes
Thursday. Then the agony will be
over. We will be glad then to discuss
your affairs." Witness did not ex?
plain this letter, either. He said Gar?
rett never told him he paid cornmls
That he did give the Carolina Glass
Company, the local concern, the ben?
efit of his "influence," witness admit?
ted. He did, he said, try to get mem?
bers of the board to buy from this
concern, in which he felt an interest
That he would speak to his friends
on the board about the purchase of
glass, and did not think there was
anything wrong in this.
October 17, 1905, witness wrote to
Paul Garrett: "1 have a small interest
in the Carolina Glass Company. I will
write you fully later and make it to
your interest to do business with this
In reference to this, Mr. Matthews
said he had been considering purchas?
ing $1,000 worth of stock in tlu- glass
company, but later had decided not
to, that his "interest" consisted in his
friends' interests in the business. Mr.
Siebels was vice president of the bank.
The exact wording of the latter part
of the letter was: "Will make some
deal some time to make it to your in?
terest to do business with the Caro?
lina Glass Company. Will run up and
see you some time." Witness did not
explain exactly the "deal," but slid he
meant he supposed that he would use
his influence locally for the firm, and
that they should buy glass of the local
Just at this point Mr. Matthews in?
dicated i:hat he was later going to
make a written statement in reply to
the questions that had been asked
That Hub Evans had endorsed a
note of G. H. Charles for $975 and
that about half of this was unpaid
was an astonishing little matter
brought out. Witness said he
"couldn't, get anything" from the erst?
while member of the State board of
control. "Yes, they say he is worth
something, but we never could collect
on this note. It was charged to profit
and loss. Xo, we never sued him."
This last remark in reply tu a ques?
tion. And Clody Charles had written:
*'I would have been In a position to
meet my obligations If certain people
had carried out their promises with?
in the past ninety days."
Mr. Matthews did not know, lie
said, of the famous Black transactions
via the Bank of Walterbsro through
the local bank. All Of this matter
was referred to and threahe i out
thoroughly at the recent Black trial.
"We want now to get down to rock
bottom," said <".!. Felder, and again!
he asked about the Plelschmann let?
ter, but met With the same result.
A letter of September 16. If ST, said;
"I will do everything 1 can In your
matter If you desire to go further with
Mr. Evans, and I will do my best to
advise you what to do. In reference
E SOUTHRON, Established June, IfeM
lev- V.a XXX. %Uu 19.
. . . ?.
to the funds of a certain < ^inml:*slon
your understanding is eomct. Ye*
will get a liberal ppyinent.'
A telegram had heen reeeiv? d a* the
bank from Clark Brothers it ieCept a
draft from C. W. Dudley, who has
figured in the whiskey matters- con?
siderably. Tnie draft was plssjs*f en
credit, but Mr. Matthews km w noth?
ing of the matter.
John McSmyrl, of Camden, was
present today. Pointing him out, Col.
Felder asked witness if he bud made
a $25,000 loan to Mr. McSmyrl, who
was of the McSmyrl Distilling Com?
pany, and has a claim against the
State now. "Good gracious, no," said
the witness. Then Col. Felder related
that Mr. McSmyrf had sworn that he
had sold the State whiskey that tost
more than $1.47 tor leas, than the to?
tal cost. Then a letter was read from
William Hull, a whiskey drummer,
who has testified before the commis?
sion. Hull wrote that it seems as If
Boyd Evany of Columbia, had control
of this McSmyrl plant, that there was
not money enough to pay the tax so
the whiskey could be sold to the dis?
pensary. That he had written the
Arm and had made a preposition
which was that A. Lehman A Co., he
himself and witness, ehoodeV endorse
the payment of the money necessary
to pay tax on the S3 5 barrels of whis?
key, on a basis of $1.35 per gallon,
this being sold at $1.60, a net profit
of $3 per case, and that one-third In?
terest in the business should be sign?
ed over to "us individually," thai fa to
say witness, Lehman and Hull pro?
vided all accounts!of McBssyrt shoaid
j be turned over to "you."
"I neither owned nor do I own any
I thing in this company," said Mr. Mat?
thews, when this letter was read. He
added that it could not be proved nor
was it so that this deal was ever con?
summated, although he admitted re?
ceiving the letter and that his bank
did have $3,500 interest In the elaim
for money owed it.
Col. Felder: Have yen not done
everything in your power to protect
and shield these men?
Mr. Matthews: I merely was pro-?
tecting our account with them.
. He adrnined going 0n Major -8lack's
bond when the latter was pat under'
peace bond for threatening Mr. Lyon's
life. "Charles came In and asked me
to do this," said witness.
Mr. Wittkowsky, of Camden, Mr*.
McSmyrls attorney, asked one ques?
tion, bringing out that loans to Mcj
Smyrl were made after the State dis?
pensary went out of business and not
A MILLIONAIRE TRAMP.
President of Great Northern Has An?
other Trying Experience*.
Libbey, Mont., Oct. 27.?Louis W.
, Hill, president of the Great Northern
railroad, has undergone a second try?
ing experience, being compelled to'
live four days solely upon elk meat.
While automobiling from Helena to
Great Falls he was mistaken for a
tramp, when his machine broke down,
and he was compelled to sleep in a
haystack, a farmer refusing him lodg?
Hill, who was visiting the proposed
Glacier National Park with a photo?
grapher and others, got separated)
from the party. He met a hunter and
engaged his service to eecort him out.
Neither had any food, but found an
abandoned camp and secured some
bread. The hunter killed an elk and
for four days this was their sole ra?
tion. Finally they reached Briton,
where Hill was picked up and brought
to this place.
COTTON GOES HIGHER.
Active Months Go Ileyoml Fourteen*
And Half Cent*?.
New York, Oct. 27.?There was
continued excitement in the cottonr
market today with prices again mak?
ing new high records, and most of the
active months selling above 14 1-i
cents on sensational bullish estimatt *
of the crop and reports that planters
\v< re hedging for higher prices. Both
Southern and Western bulls were
credited with being aggressive buyers
at times during the day.
December eotton sold as high upas
14.47 and May at 14.63 during the af?
ternoon. Realising caused slight re?
action later, but the market closed
very steady at from 3 to 20 points net
Two prominent Southern authori?
ties Issued estimate' of the crop, one
placing it at 16 3<?0.000. and the other'
10,520,000, comparing with la^t rear's
commercial crop ef about l.ooo.ooo.
"Poverty is not a luxury," says Tom
Law son. No, it's almost a necessity
since the Payne law went into opera"
tlon*?St. Paul Dispatch.