The herald and news. (Newberry S.C.) 1903-1937, February 20, 1906, Page SIX, Image 6
DISPENSAR COMMITTEE
CONCLUDES ITS WORK
DRASTIC ACTION RECOMMEND
ED TO LEGISLATURE.
Newberry Matters Not Taken Up
Mr. E. Y. Morris On the Wit
ness Stand.
The dispensary investigating com
mittee reported to the general assem
bly on Thursday night, recommending
drastic action toward the Carolina
Glass company. It recommended
that in view of the revelations that
had been made that the state take
steps to rescind the orders the dis
pensary has ahead with the company.
amounting to -300 cars, worth about
$700,000, and call for bids for such
bottles as may be needed. says the
Columbia State.
Following is a copy of the commit
tee's report:
To the General Assembly of South
Carolina:
The committee appointed to inves
tigate the dispensary, respectfully re
ports to the general assembly:
That in the course of their investi
gation they find that the contracts be
tween the Carolina Glass company
and the dispensary are in a very un
satisfactory condition; that higher
glass as may be needed, -s Is now pro
than the agreements call for; that
there has been a lack of competi
tion in bidding; that glass has been
sol{ to the dispensary without writ
ten cofftracts, with said company for
about 300 cars of glass, an unreason
able and excessive quantity, the con
tracts for which, as your commit
ze believes, have been awarded at an
excessive price.
Therefore, your committee recom
mends that expert accountants and
such other persons as may be neces
sary be employed to check up all ac
counts, inspect the contracts of the
Carolina Glass company with the dis
pensary and that the legislature take
such action as may be necessary to
rescind all unfilled contracts or or
ders awarded to the said Carolina
Glass company; that the bids be re
opened anid the contracts for glass
awarded to the lowest responsible
bidder and that the bidding on such
glass as may be needed, as in now pro
vided by law for the purchase of li
quors.
Your committee recommends, the
passage of the concurrent resolution
submitted herewith.
- J. T. Hay.
Chairman.
The dispensary investigation was
concluded somewhat abruptly Thurs
day afternoon when the committee to
go into the "Newberry matters,''
although Mr. Lyon and Mr. Chris
tensen were anxious to do so. The
Carolina Glass company 's transac
tions were investigated to the fliale
and the committee adjourned to meet
at the call of Chairman Hay.
When the committee first conven
ed Mr. Fraser made a motion that the
committee do not sit any more during
the sessions of the house and senate.
He gave very logical reasons. Im
portant reports from the committee
on free conference are being brought
in and every member might be need
ed.
Mr. Lyon stated that he would vote
in opposition to the resolution. Mr.
Christensen also favored pushing the
investigation right along. The legis
lators want information.
Col. Spivey thought the first duty
was in the house and senate, but if a
majority could be obtained for the
committee meetings, the members
mnight go on with the investigation.
It was so decided.
Mr. C. H. Norton, manager of the
Carolina Glass company, was again
put on the stand. He stated that the
basis of their calenlations had been
850 cars. They had delivered 410,045
eases. Mr. Norton's statement show
ed that numerically 457 cars had been
delivered. At the rate of 850 cases to
a car it figured out that 482 cars of
bottles at that basis. The 34 cars of
flasks for case goods would not cover
this discrepancy. Mr. Lyles called
attention of witness to fact that the
contract put no limitation on the
number of cases to a car. A letter
was put in evidence by Mr. Lyon
showing estimates made by Mr. G.
H. Charles for the number of flas
for the lower grades of case goods
which the dispensary started to bot
tling last year. These amounted to
40 ears. They are being paid $3.40
for halves; $4.85 for pints, and $8.65
for quarts for these flasks.
Mr. Lyon inquired if there was ever
any award for 34 cars of glass for
these bottles except Mr. Charles' let
ter to Mr. Seibles.
Witness answered if there had ever
been any contract he had never seen
it. They had figured on 1,000 cases
to the car for new bottles. Did not
know why the diserepancy. Witness
.;i1ted that if these bottles had been
mih t prices e.isting whenl order
wa;s n.- lvddY wouild have been
nOwh t-trato '.) ventsz a .--ross lllw
er1 10n pi zma d ha,1f p)i!ts- and11 .1
cents on quarts.
Mr. Norton explained that this was
his mistake. They had been ship
ping at prices named and had just
run out this lot at the same figures.
the prices4"
1Well, I just did it.'"
Mr. Lyon went over the figures again
and again.
Mr. Norton declared that there had
been no intention to get more than
was right for these new flasks, but he
had wanted to put them in with the
shipment of other glass at the same
tine in order to expedite the matter.
Witness said he considered it a part
of the order of March, 1904, and he
had tried to ship the new bottles out
on that contract in order to get the
shipment in early.
The March, 1904, prices showed
high water mark. Two contracts at
decreasing priees had been received
between that time and the time of re
ceiving the order for the glass for the
new bottles, but he was working un
der the coitract of March, 1904.
Mr. Lyon then searched the witness
vigorously to bring it out that there
was no standard for the number of
cases in a car or if there had been a
standard they had had contracts for
400 cars and had delivered 487. Even
the 34 ears of new style bottles sand
wiched in there would not make up
the difference. This showed a differ
ence of 48 cars which were delivered
over and above the 400 contracted
for.
After having secured the 48 cars
admitted to have been delivered, 1r.
Lyon then began calculation *to show
that these cars had been at an exces
sive price. Witness admitted that it
appears so. The difference in prices
was about 13 to 20 cents per gross.
Mr. Lyles called attention to the
fact that demijohns had been deliver
ed out of the 48 cars.
Mr. Lyon asked witness' attention
to fact that these calculations were
based on number of cases delivered,
and not the same calculations as those
made the afternoon before. Both cal
culations footed up the same thing
when the demijohns were taken out of
the 457 cars delivered numerically
and the 48 cars were added, each cal
ulation footing up 482 cars.
On a basis of 82 cars, Mr. Lyon had
Mr. Norton to make calculations to
show that there is a difference of $1,
742.50 in the prices.
Admitted Overcharge of $1,750.
Mr. Norton said that certainly it
is due to the dispensary to return
that amount and that it could be done:;
they have never had a settlement
with the dispensary for $5,000 at a
time and had never had a final set
tlement on any contracts. The matter
was just running along.
Witness admitted that it would
look suspicious that there should be
a drop in prices just at the time Mr'.
Packham had come here. Witness de
nied, however, that there is any signi
ficance.
Mr. Norton was asked a number of
questions through Mr. G. H. Charles'
letter to Mr. Seibels. Witness stated
he had considered it an amendment t.o
the order under contract of December,
1904.
Mr. Gaston wanted to know why
the bookkeeper had not kept tab of.
when one contract ended and another
began. Witness replied that any book
keeper may make mistakes and that
in final settlement he, Mr. Norton,
will have this whole matter checked
up and proper credits made.
Mr. Lyon presented a letter to
show that Mr. Seibels had advised
Mr. Norton in regard to the contracts
with the dispensary.
Mr. Lyon called attention to the
Ifact that there were orders for 20 cars
of of demijohns and that 22 cars had
been shipped. Witness said that the
dispensary reserves the right to in
rease its orders. There are 10,000
Idemijohns reckoned to a car. The
price is 24 cents each. They do not
pack a car full of demijohns. They
had shipped something like 16,981
demijohns more than contracts called
for. These two additional cars had
been shipped in last six months.
Mr. Lyon then put in evidence bid
of C. L. Flaccus company for demi
johns at '20 cents each, 4 cents lower
'than Carolina, on date of March 4,
1905. The difference was $624.95 on
the two extra cars. At 3 cents the dif
ference would have been $594. Mr.
Lyon showed that the glass company
had bid 23 cents when Flaceus bid
20, but that the demijohrns had been
delivered at 24 cents.
Witness said there is a difference
in demijohns.
Mr. Lyon put in evidence two demi
johns, one made hy the Carolina
Glass company, which the witness
(said was not so good as the other as
to covering. The identity of the other
packag"e was not explained andf V'et
ifenla InsI a nistt'PV.
Mr. fli ten Nided to kIIIwwy
tlie --lass cwmpany clbing-ed 24 (-ents
instead of 23 in accrdance with the
bid. Witness said he had not found
out until he came here that there had
been an excess of two cars of the ord
er at 24 cents.
Mr. Lyon asked why 'Flaccus had
not put in a bid on flasks if he coulId
submit a lower bid on demijolins.
Witness said he didn't know anything
about the Flaccus bids.
In regard to sl-ipments of empty
cases in cars, previously referred to,
I Mr. Lyon asked who paid the freight.
The glass factory paid it and charged
it to the State dispensary.
Mr. Lyon asked concerning other
speefic shipments of empty cases and
charges for freight and trackage, one
amounting to $420 and another to
$33S Mr. Norton said the dispensary
paid the freight.
Mr. Lyon said he 'again desired to
ask Mr. Norton who are the officers
of the glass company and the salary
of each..
Mr. Lyles objected, saying they did
not object to the names of the offi
cers being given.
Mr. Lyon said the private affairs
of Mr. Packham had been gone into
and this was also a legitimate inquiry.
Mr. Lyles argued thatthe statement
of -Mr. Lyon was unfair, Packham:
uwas a witness and they had a right
to attack his credibility. Mr. Lyon
had put up Mr. Norton, who was Mr.
Lyon's witness, and he could not
therfore attack his credibility. The
matter, Mr. Lyles said, was not
relevant.
Mr. Lyon said that Mr., Lyles had
misconstrued the purpose of the in
quiry and he held that the committee
was not bound by the rules of evid
ence, as is a eourt. He asked the
question, and would accept Mr. Nor
ton's statement, so far as he knew.
Mr. F. H. Weston, who has been as
sociated with Mr. Lyles as counsel
for the Carolina Glass company, also
argued that the point was irrelevant
and was going needlessly into the pri
vate affairs of citizens.
Mr. Gaston for the committee, after
consultation, held that the names of
the officers could be disclosea and if
the officers are not connected with
the State the amount of the salaries
is not pertinent.
Mr. Norton stated, when permitted,
that Mr. Rozier, the bookkeeper, Mr.'
Williams, Mr. Norton and Mr. Seibles
are the officers. He explained the
duties of each.
In response to questions from Mr.
Welsh, witness stated there was a
100-car order in March and a 100-car
order in December. He was asked
why the order f'?r b4 cars of 1,000
cases were made in February, 1905.
Mr. Norton stated that these were for
a different kind of glass and the
board would not meet for some time
to award contracts.
As to the demijohns. witness said
that there was an order for 10 cars in
February, 1904; there were 10 cars in
1903. All of these dates were before:
Messrs. Boykin and Towill went on
the b)oard in March, 1904. It was:
March, 1905, when Flaccus put in a
lower bid on demijohns. Glass corn
pany then bid 23 cents. In December,
1904, witness bid 24 cents. Witness~
did not know that Flaccus was bid
dinoz'
Mr. Lyon offered a carbon copy of
a bid of the Carolina Glass company
with the bid of Flaccus written in
parallel coluwn. Witness said that he!
had nothing to do with the matter.
Witness claimed that his demijohn~
is more serviceable than the other ex
hibited. It is heaver and is made of
flint glass while the other is of green
glass, though the bottom is better.
Mr. Lyles then examined the wit
ness, who read a letter from Mr.
Seibles in which he quoted the number
Iof eases needed by the dispensary in
making the new bottles. Mr. Seibles
had stated in that letter that it would
cost very much more to make the
change, but the glass company wanted
the business and wanted to do it in
Istrict accordance with the law.
Mr. Lyles called attention to the
annotations made on the paper ex
hibited by Mr. Lyon. Witness said he
'had not seen those annotations until
he saw the paper in the committee
room.
Mr. Lyon demanded to know if the
inference was intended that the com
mittee had put the figures there.
Mr. Lyles said that no such dis
courtesy was intended.
Mr. E. K. Ward was next sworn.
He has charge of the Bombay reed de
partment of the Carolina Glass com
pany. Mr. Lyles asked if witness un
derstood that to swear falsely was
perjury. Witness colored up and re
plied that he did.
Mr. Ward then admitted that he
had offered expenses to Aaron Clark!
of Statesville to come down here to I
swear agaMinst raeklam. la rk had
stated. that :Ie had nitt the fa-e to
comie dow!1 ireI t1 te-Lif y a ai.nst
lc;ki nn illllinll'h ( sltii atcl ei v
tw 'plhine that he h:.dl ha a conVer.
Stin With Packhniii at lie hotel iii
Salislrly on th :ird ,.I f Februialy.
Mr. Lvles and question not pressed
now is if he is not in Baltimore. Wit
ness replied that Mr. Seibels is here
in Columbia.. Mr. Lyon wanted to
know if Mr. Charle.s.clerk of the-State
dispensary, has not been wiring Lana
han in Baltimore to get information
as to Mr. Packhain. Witness knew
nothing about Mr. Charles.
Mr. Packhan was put up and was;
asked if Aaron Clark had not stated
to him that what Ward had said was
a malicious lie. (Objection made by
Mr. Lvles and questioned not pressedI
as Mr. Ward had not been permitted
to give hearsay.)
Mr. Weston challenged the sub
committee to go to Salisbury.
Mr. Gaston stated that the com
mittee is accepting no challenges.
They want to get facts.
Mr. Packham stated that Clarke
would coine at his own expense and
tell the truth.
Mr. Lyon then put Mr. Ward back
on the stand and it was agreed for
him to give hearsay. In reply to Mr.
Lyles' question, Mr. Ward stated
that he was in Salisbury February
3rd. He was in Clarke's office. Aaron
Clark said: "Be the way, Ward, there
is a glass man in town, a friend of
yours, George Packham. He is going
to Columbia to expose a lot of rot-,
tenness." Clarke said that Pack-!
ham had come in response to a tele- i
gram from the committee. Clarke
said that Packham would show up a
lot of rottenness and would hurt Car
olina Glass company and might put.1
them out of business. Later Mr. I
Ward was in J. C. Somers' place in
Salisbury and Mr. Maxwell, the
bookkeeper, had said that Packham
had told him a lot of ipformation in
regard to the glass tompany, that
they were charging $ for bottles
which he had offered to niake for $6.
Mr. Lyon cross-examined the 'Wit
ness. Mr. Ward, after repeating the
conversation with Clarke the third
time, stated that Clarke had said that
Packham had "said'' he would put
the Carolina Glass comp)any out of
business.
On two former statements Mr.
Ward had said that Clarke had made
the statement that Packham was corn
ing down to put the'- Carolina Glass
company out of business. The third
time he recdlled that Clarke gave the
information as coming from Pack
ham. Mr. Ward said that he hadl
seen the telegrams from Maxwell and
Clarke. He had recited this whole
inident to Clarke over the 'phone
night before last. Mr. Seibels had
cut in on the 'phone and had heard1
the entire conversation with Mr.
Clarke.
Mr. Ward was examined by Mr.
Weston. Said he was agent of the
Southern railway company before ac
cepting the piosition with the glass
company. Had held several responsi
ble positions.
Packham's Defence.
In the afternoon the investigation
was opened w-ith Mr. Packham on the
stand. He presented a telegram from
Aaron Clarke of Salisbury telling
Packham to call him over the long1
distance 'phone Wednesday night.
Packham had called at that hour.
Clarke had then said to witness that1
if he came to Columbia his testimony
would do the Carolina Glass company
no good that Mr. Ward had taken ad
vantage of a few remarks Clarke had
made and that if Mr. Ward insisted
that Clarke had said that Packham
had said thus and so it was "damn,
malicious lie.''
Witness claimed that there was a
conspiracy to defame his character
and presented a letter he had just re
ceived from Packham Bros., in which
it was stated that Robert Lanahan 's
"young man'' had 'phoned to them
asking if there was an Edward Pack
ham. Lanahan 's clerk had said that
they had a wire from South Carolina
to find out if Ed Packhiam was in
town. Lanahan 's man stated that it
was from a friend of E. Packham
Mr. Charles. This young man in
quired if "all troubles'' had been set
tled between the Paekham. Lanahan 's
young man also wanted to know if
Harry P. Hoffman was in Baltimore.
Mr. Lyles then began to cross-ex
amine Mr. Packham. Witness said
that his bids were dictated in his of
fice and were typewritten. Packham
uses a yellow paper. M. Lyon asked
many questions to, find out the kind
of paper used by Packham in writing
to Mr. D)outhit in 1902.
Mr. P'ackham denied again that he
had saidl that he was down here to
wreck the Carolina Glass company.
Mr. Lyles asked if he had niot said
that he was down here 'to put the
harpoon into those who had done him
wron a he woul put it in deep,"
HAIR &
NEW Q
Received
Every day f
week we hav
buying public
for their dolIai
We intend mab
business bigger ti
promise you Ne
Goods at Right P
Your Trade and will
toscome to our Stor
HAIR & I
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E BY
berry, S. C.