Historical Newspapers of South Carolina

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PROBING DEEP. Commission Trying to Corner Cer tain Dispensary Grafters. THE PROOF OF GUILT Is Getting Stronger in the Case ol Certain People Involved in the Dis pensary Scandals?Morton A. Good man, a Liquor Drummer, Was on the Witness Stand. Some Tell Tale Letters Read. The old dispensary scandals are be ing; ventilated again bv the commis sion appointed to wind the institu tion up. Morton A. Goodman, once a liquor salesm&n drawing nominally $5,000 a year with an unlimited ex pense account was placed in arrest Thursday at the instigation of At torney General Lyon and the special attorneys representing the commis sion for the winding up of the af fairs of the State dispensary. The charge is conspiracy to defraud the State. He subsequently offered a cash bond of $25,000. The commis sion examined only one witness Thurs day. He came voluntarily to estab lish his claim but left a prisoner. GOODMAN'S TESTIMONY. After being sworn, Goodman said he had been a representative of Ull man & Co. He declared that his ac count against the dispensary is just and is still due and no amount of it bad beed paid. He said that J. A. Braun, who was present, is a book keeper for Ullman & Co., and had brought the sales books for exami nation. Goodman was then examin ed by Mr. Felder special attorney of the commission and interesting statements were brought out by his replies. Witness said that he had covered Ohio and a number of other States for Ullman, including South Caro lina. Had been with Ullman since 1904. Was formerly with the Com-1 monwealth Distilling company as manager and president. Elected president in 1902. Its office was in | Louisville. Ky. The capitol stock was $250.000 or $300,000. . Mr. Felder insisted that Goodman should say where he made sales for the Commonwealth company outside of South Carolina. Witness said he could not remember, except the Say annah Grocery company, and did not remember why he sold that company. Did not sell it Henrietta rye. Could not say if he sold any one else Hen rietta. Did not remember if he sold Henrietta outside of South Carolina. He was asked if he knew Mr. B. Ehrlich, and he replied that Ehrlich did business in Atlanta. In Augnst. 1904, Goodman chang ed ? his base of operations from the Commonwealth company of Louis ville to the Ullman company of Cin cinnati. He admitted that he had been given his new position through the agency of Ben Ehrlich, with whom he established a partnership. It was brought out that the Common wealth company existed largely upon letter heads and that its sales were made from a warehouse in Louis ville, although it claimed to be in the distilling business at Lexington. In the interim there was great trouble brought to the heart of Good man. He wrote to his friend and partner, Goodman explaining that the Commonwealth people would not - release him from his contract with them and the awarding of purchases at the South Carolina dispensary was to take place before he could get on his job with the Ullman house. He wrote Ullman a letter urging that the dispensary board be prevailed upon through John Black, not then a member of the board, to postpone the matter of purchases until Sep tember as the Ullman bids were "very poor." The board for some reason or oth er did this very same thing. No pur chases were made in August. In the meantime, the Ulman company pro posed a new bid. in which the prices | on certain goods were raised. From the time that Goodman went with the Ullman company until the dis pensary graft was made public Ull man's business was a great success. The Commonwealth company, which had been doing- an enormous busi ness under Goodman's nominal pres idency, drooped to nothing. In the meantime Ullman sold the State dis pensary over $150,000 worth of "goods" the first nine months that Goodman was there, against about $10,000 for several years preceding. VERY POOR MEMORY. Goodman exhibited a very faulty memory. The commission was mov ed to great sorrow because a man of such aDparent intelligence could re member nothing. He denied that he had ever told Black, Rawlinson and Wylie, the three ejected dispensary directors, that Ullmau & Co., and the Anchor Distilling company were the same. And yet it was shown by Col. T. B. Felder that the very stationery of the two concerns showed the same address. Subsequently it was brought out that there was a third concern, Strauss & Co., making bids to the Stste dispensary and that this Strauss was a member of the Ullman comp-1 any, all three concerns, two being j "fak?s," submitting "competitive" bids to the State dispensary. Wit- j ness denied having any written contract with reference to his change of business in August, 1904. Later the contract was produced and read. Ullman & Co., had a copyright for mula on "gin phosphate." It was proved that there was much graft in this brand of goods. Goodman, under oath, had sworn to Messrs. Lvon and Christensen that these goods had been sold in South Caro lina at a lower price than anywhere else. Col. Felder put in evidence Goodman's testimony to the effect that higher prices were charged in South Carolina "in order to pay for special advertising." In Augusta, 1904, before Goodman got his new job, gin phosphate was listed at $9.50 per case. In September the price was $10. Five hundred cases were bought from Goodman at the ad vanced price. Retail dealers else where were getting it for $7.80 a case. I did he have a pull? Goldman denied that he had had any special pull to get him dales with Boykin and Towill.' ''How much did you pay Mr. Boykin?" witness was asked. "Nothing," he replied. "How much to Mr. Towill?" "Nothing." He admitted that he had lied if he had ever written anything to the effect that he had a pull with these directors named. Col. Felder then produced and read the following let ter: Distillery, Lexington, Ky. M. A. Goodman, President and Man ager the Commonwealth Distillery Company, Incorporated Distillers, Office 228 Second Street. Louisville, Ky., Aug. 17,1904. My Dear Barney: I do not know that I was ever in such an uncom fortable and mean position, ?s there is a meeting of the board in Colum bia, Monday, August 22. I would to be there, but so far the company have refused to let me off. I wired to Myers to have them release me on the 15th, but he positively refused. Now, I want you to go to Colum bia; be there Monday morning early; telegraph Maj. John Black, 1007 As sembly street, to meet you at the Co lumbia hotel and do everything you two can to have them to postpone the buying until next month. I enclose you copy of Ullman & Co.'s bid and it is such a poor one that there is very little for them to buy of us, but if they are going'to buy get them to buy of us the goods I checked off. I want you to tell Boykin particu larly my position and ask Black if you should explain things to Towill; now tell Boykin on account of my leaving here on Sept. 1,1 would be unable to pay any commissions for purchases they make from the Commonwealth, consequently under no circumstanc es buy anything from them. You might ass Boykin's and Maj. Black's opinion if you should say anytning regarding this to Towill. I am also writing Black to 'meet you and tell you what you should do. You had best also show him this let ter in case I overlook writting him fully about anything. I would, above everything else, like to see them not buy and wait until their next month's meeting. Tell Boykin to please, under no cir cumstances, though, to purchase any Henrietta, apricot brandy, or bottled in bond, and to save if possible, that for us until we put in a new bid next month. I wired him if he could possib ly come here before the meeting to do so, but not receiving any reply pre sume he was absent from home. Please tell him I shall come out to his home some day before the Septem ber purchase and will let him know just when. Now, if there is anything you and Maj. Black don't understand, wire or call me up. I guess if you want to call me up on the longdistance it would be best for you to wire me to call you up, otherwise the message comes through the office and the people here will know*too much. I do hope you will be able and suc ceed in getting the buying postpon ed. It has almost worried me sick to be fixed with my hands tied like I am, but I do know you and Black will do your best. If anything unexpect en occurrs that I can get away, but hardly expect that to happen. Went over everything with Strauss Saturday; will fix the papers the next timo I go up. Trust you are having a pjood trade, j As mentioned before, if you don't understand everything wire me. Sincerely yours, Morton, A. G. Since writing above received a tele gram from Mr. Boykin; he couldn't come this week, I am writting him you would see him in Columbia. Also remind Black to not forget the In dianapolis people. heavy expense account. Witness denied that when he was making the shift from the Common wealth company to the Anchor com pany in August, 1904, there were any influences brought to bear to keep the State board from mak ing purchases. Later Col. Felder produced a letter from Goodman, showing that he did try to hold up purchases in Avgust, 1904. The min ute books were produced to show that the board made no purchases in that month, but that in September, when he had landed in his new job, Goodman sold large orders. In the meantime Commonwealth business dwindled away and Ullman's grew apace. "The usual commissions" in Good man's singular letter was explained j to mean the commissions to John 1 Black, agent, and not to the mem i Uers of the board. These commissons paid to some body must have been very heavy for j Goodman's expense account for nine months, a copy of which was put in evidence. The statements we put in evidence to show that there had been ?62,000 gross profit from the Ullman busi ness in nine months, that $9,000 of thisamount was normal expenses and $43,000 was unaccounted for. Good man had declined to make an itemiz ed statement to his partners. Fol lowing is the expense account: Cincinnati, Juue 2,1905. Mr. M. A. Goodman, et al., In account with Ullman & Co., 416 W. Fourth Street. Half Profits .$31,621.80 Half expenses. 21.655.59 $9.966.21 Personal drafts. $11,437.50 9,666.21 Due us.$1,471.29 Mr. Felder made a point out of the fact that there were several brands which Geodman got up. "Bul ly Boy" and "Good Boy," etc.. al most exclusively for the South Car olina trade. a righoeous protest. Mr. Felder showed how after the letter of Goodman written in Aug ust, 1904. Ullman & Co.. got a larpje order, whereas before that time they had received nothing, and this called forth a protest from the1 BIG SENSATION. (Continued from page one.) Mr. Stevenson was to get it?" Mr. Roy: "I never met Mr. Mor | chairman of the board, Mr. H. H. Evans. This was put in evidence by Mr. Felder, who presented it as "a [remarkable document, a righteous protest, set- forth in eight orderly paragraphs conveying his indigna-;decaI on this Question." tion to the people of South Caro- Mr- Nelson then examined Mr. I Una." I Roy and brought out that no money Mr. Evans said his protest "was had vet been collected by Mr. Roy to 'not made or based upon <-r by any be used in collecting the claims, maiice or prejudice but simply upon . He asked what Mr. Roy knew as business principles as each member to how his letter reached the com of the State board is fully friends | mission. Mr. Roy replied he heard and in perfect harmony. Except as it was ??nt by Mr. Mordecai to Mr. to the business methods upon these Stevenson and that Mr. Stevenson questions alone have we ever dis- i had sent a copy to every member agreed." j except Mr. Arthur. There were 700 cases of "apricot Mr. Nelson. "Did you have any brandy" sold at the December meet- j agreement with any but myself as to ing in 1904, Mr. Felder asked a,commission for collection?" number of searching questions and brought out the information that this is not a distilled brandy but a | concoction, colored and flavored and sold at a high price. "What is it worth," asked Mr. Felder. "Whatever I can get for it." an swered Goodman. An analysis of the purchases for I this month showrd 400 barrels and 2,200 cases awarded to Goodman. Witness denied that he got any 'rake off" from the Big Springs Distilliug company also at this meet ng. This company is owned by Sig el Myer, an uncle of the witness, but they were represented by Solo mons. Witness admitted represent ing an Indianapolis beer company, but did not remember the prices or the commissions. He had written to the board to "remember our In dianapolis friends." Goodman admitted that he and one Farly of Fleishmann & Co., had entertained L. W. Boykin, then a director, when Boykin went to Cin cinnati with Commissioner W. 0 Ta tum. However, Boykin had return ed to them the price of his enter tainment. "Did he have very much Mr. Roy: "No." Mr. Nelson: "Did you expect to pay Kohn, Melton or any one else but myself?" Mr. Roy: "No." On the redirect examination, Mr. Lyon again questioned Roy as to what his so-called associates were to receive out of the plan. Mr. Lyon: "You said your other associates were not to receive any thing. When will they receive any thing?" Mr. Roy: "Never." Mr. Lyon: "When were they to get it?" Mr. Roy: "I don't know." Mr. Lyon: "You mean Mimnaugh and others?" Mr. Roy: "I did not say that, never saw these gentlemen." Mr. Lyon: "What was Kohn to get out of it?" Mr. Roy: "I don't know. Can't give you any information at all." Mr. Lyon. "Was this plan done with the knowledge of Mr. Robert son?" Mr. Roy: I don't think it was." Mr. Lyon: "Don't you know what Robertson knew?" Mr. Roy: "He knew nothing be trouble to get you to take it back, | yond that tne Dank was to be made asked Mr. Felder sarcastically, and everybody in the court room laugh ed. Mr. Felder stated that in Decem ber, 1904, the distinguished chair man of the board hau filed another protest, to which he invited "pray erful consideration." Mr. Felder here read Mr. H. H. Evan's second protest in which he protested against the buying of goods that was not needed. Mr. Felder tried to brine1 it out the depository. I drew up a paper, and when Mr. Robertson saw it he was opposed to having anything to do with the attorney's fees. He on ly wanted the banks regular charge for exchange and refused to enter into the first agreement. He ac cepted the agreement to collect and pay over the money." No Improper Means. Mr. W. D. Melton, the well-known attorney of Columbia, was then , i sworn, and he stated that he had no that Ullman & Co had charged objection to telling what he knew higher prices on wholesale lots on every piece of "goods" to South Carolina than in retail lots to other dealers. He established this in sev eral instances by the books of re cord. paid boykin and to will. There was somewhat of a sensa tion when Mr. Felder proved that after a while Goodman and Ehrlich had had'a falling out and that Goodman had paid $500 for the re jturn of a "price list." Goodman forgot about or denied this until the documentary evidence was pro duced and then he remembered that he had threatened Ehrlick with the federal courts. Goodman had denied having had a written contract with anybody, but his memory was refreshed with the presentation of a copy. Mr. Felder called attention to the fact that Goodman and Braun had brought here onlv the sales books and not the exspense account books. But from the sales books the com I mission had scores of entries show ing the State of South Carolina for some reasons or other had paid $2 a case more on some orders than small dealers bad received. There was a great deal of conclusive evidence along this line. B. Ehrlich, of Atlanta, testified that he was engaged in selling liquor for Uliman & Co,, of Cincinnati, Ohio, and had associeted with him M, A. Goodman, L. Mauheimer and J A. Himmelbauer upon August 1904, and July 31. 1905. During this time large quanities of liquors were sold the South Carolina State dispensary. That he met M. A. Goodman several times in the city of Columbia, S. C, for the purpose of conferring with Goodman and advancing sale of li quors and for consulting and agree ing upon the best plans for conduct ing their business. That M. A. [Goodman, his associate, deposed j that it cost him a great deal of mon |ey to get the business from the South Carolina State dispensary. I That Boykin and To will, members of the board of dispensary directors, were his friends on the board and that he paid them to buy from Ull man & Co.; and that in the course of his association with said Goodman as herein stated deponent received a letter from Goodman with the hand writing of Goodman on letterheads of the Commonwealth Distilling Coj, of Louisville, Ky., dated August 17. 1904. addressed, *My Dear Barney, and signed "Morton, A. G.,' with an unsigned postcript on the fonrth page. This letter speaks for itself." about this plan to collect the claims against the dispensary. The propo sition had been made to him to col lect the claims for six per cent, and he was to employ such associate counsel and assistance as he might select. Ho had severs1 interviews with Mr. Roy and one with Mr. Les ter. After duly considering the mat ter he had decided not to accept the proposit? >n. Mr. Lyon: "Were you impressed that improper means were to be us ed?" Mr. Melton: "Never at any time. There was no suggestion of improper use of money or influence. I thought I could get a fair hearing before the commission and there .was no necessity for any proceedings in Court. I understood that the only matter of difference between the commission and the creditors was the matter of over-charges, which could be adjusted. I got this from Nelson, and he from Mr. Stevenson. Mr. Lyon: "Were ycu familiar with the Roy letter?" Mr. Melton: "I was not. After I declined to take the case Mr. Roy asked for an interview with me, and then stated he would write a letter. I did not see the letter before it went out or while I was Interested. I have no connection with the matter now at all." Mr. Nelson then brought out from Mr. Melton that he and Mr. Melton had been in accord as to how the case should be handled, and that the agreement made by Nelson was the same that was proposed to be made with Melton. JUMPED TO HER DEATH. Rich Boston Woman Commits Sui cide in New York. 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The body of Mrs. Sears fell on the roof of a four-story building adjoin ing the St. Regis and the fall was heard by residents of that building. Mrs. Sears left a note for her hus band. The body of Mrs. Sears was dress ed only in her night clothing and the appearance of her room indicated that she had been lying in bed read ing. The door leading to the maid's room was bolted. t Public Speaker Interrupted. Public speakers are frequently in terrupted by people coughing. This would not happen if Foley's Honey and Tar were taken, as it cures coughs and colds and prevent pneu monia and consumption. The genuine contains no opiates and is in a yel low package. Dr. A. C. Dukes. The Times and Democrat IS NOW PUBLISHED Twice-a-Week AT $1.50 Per Annum. GIVEN A WAY! Rubber Tire and other Expensive Buggies, Fine Sets of Harness, Elegant Lap-Robes, Whips, Saddles, Bridles AND NUMEROUS OTHER VALUABLE PRIZES ACTUALLY GIVEN AWAY -A.t GREAT TEN DAYS CASH SACRIFICE SALE ORANGEBURG, S. 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