Historical Newspapers of South Carolina

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PROBING DEEP. Commission Trying to Corner Cer tain Dispensary Grafters. THE PROOF OF GUILT Id Gotting Stronger In tho Ouse ol Certain Poonta Involved in the Dis pensary Scandals-Morton A. Good man, a Liquor Drummer, Was on tho Witness Stand. Some Tell Tale Letters Head. Tho old dispensary scandals arc bo in??; ventilated again bv the commis sion appointed to wind the institu tion up. Morton A. Goodman, once a liquor salesman drawing nominally $5,000 a year with an unlimited ex pense account was placed in arrest Thursday at the instigation of At torney Genera] 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 $25,0 00. The commis sion examined only one witnessThurs day. He came voluntarily to estab lish his claim but left a prisoner. GOODMAN'S TESTIMONY. After being sworn, Goodman said be 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 had heed paid. Ile 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 monwealth Distilling company as manager and president. Fleeted 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 rVnKr?? Wt? * 1 " .._-?,? ii. no Knew Mr. li. Ehrlich, and he replied that Ehrlich did business in Atlanta. In August, 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 lien 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 oublie Ull / man's business was a grf 'uccess. \?rhe Commonwealth con y, which bad boon doini an om... nous bust /.ness under Goodman's nominal pres rf idency, dropped to nothing. In the jr 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 apparent, intelligence could re member nothing. He denied that he had ever told Mack, Rawlinson and Wylie, tho three ejected dispensary directors, that Ullman & 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 thc same address. f Subsequently it. was brought out that there was a third concern, Strauss & Co., making bids to the Stste dispensary and that t his Strauss was a member of the Ul ii'ian comp any, all three concerns, two being "fakes," submitting "competitive" bids to the State dispensary. Wit 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. 1901, 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. DID HIO IIAVK A PULL? Goodman denied that he had had any special pull to get him sales with Boykin and To wi ll. "How much did you pay Mr. Boykin?" witness was asked. "Nothing," he replied. "How much to Mr. TowiD?" "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: 1 do not know that I was ever in such an uncom fortable and mean position, as there is a meeting of the board in Colum bia, Monday, August 22. 1 would to be there, but so far the company have refused to lot me off. I wired to Myers to have them release me on the l?thj 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 To will; now tell Boykin on account of my leaving herc on Sept. 1, I would be unable to pay any commissions for purchases they make from the Commonwealth, consequently under no circumstanc es hov an vt hine1 from them. You 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 be 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 long distance 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 rho sick to be fixed with my hands tied like I am, but I do know you and Black will do your best. If anything unexpeet 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 time I go up. Trust you are having a good trade. As mentioned before, if you don't understand everything wire me. Sincerely yours, MOUTON, 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 tho In dianapolis people. HEAVY BXPKNSK ACCOUNT. Witness denied that when he was making the shift from the Common wealth company to tho 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 lu; did try to hold up purchases i ii Avgust, 1904. Thc 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 now job, Goodman sold large orders. In the meantime Commonwealth business dwindled away anti Ullman's grew apace. "The usual commissions" in Good man's singular lotter was explained to mean the commissions to .lohn Black, agent, and not to the mem bers of the board. These Commissons paid to some body must have boen very heavy for Goodman's expense account for nine months, a copy of which was put in evidence. The statements we put in cvidenco to show that there had been $62,000 gross profit from the Ullman busi ness in nine months, that $9,000 of thisamountwas 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, June 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 Goodman got up, ''Bul ly Boy" and "Good Boy," etc.. al most exclusively for the South Car olina trade. A RlGHOEOUS PROTEST, Mr. Felder showed how after the letter of Goodman written in Aug ust, 1904, Ullman & Co.. got a large order, whereas before that time they had received nothing, and this called forth a protest from the 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 tion to the people of South Caro lina." Mr. Evans said his protest "was not made or based upon or by any malice or prejudice but simply upon business principles as each member of the State board is fully friends and in perfect harmony. Fxcept as to the business methods upon these questions alone have we ever dis agreed." '1 nore were 700 cases of "apricot brandy" sold at the December meet ing in 1904, Mr. Felder asked a 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 this month showrd 400 barrels and 2,200 cases awarded to Goodman. Witness denied that he got any "rake off" from the Big Springs Distilling company also at this moet 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, cinnati with Commissioner W. O Ta tum. However, Boykin had return ed to them the price of his enter tainment. "Did he have very much trouble to get you to take it back." 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 had 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 bring it out that Ullman & Co. had charged 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 TOWILL. 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 $.r>00 for the re turn 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 Ehrliek 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 tia; sales books and not the exspense account books. But from the sales books the com mission had seores of entries show ing tho State of South Carolina for some reasons or other had paid $2 a ease more on some orders than small dealers bad received. There was a great deal of conclusive evidence along this line. I!. Ehrlich, of Atlanta, testified that he was engaged in sellingliquor for Uliman & Co,, of Cincinnati, Ohio, and bad associcted with him M.A. Goodman, L. Mauhcimer and A. Himmelbauer upon August 1901, and July 31. ??05, During this time large quanitie* "f liquors were sold tho 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-1 quorn and for consulting and agree ing upon the best plans for conduct ing their business. That M. A. Goodman, bis associate, deposed that it cost him a great deal of mon ey to get the business from tho South Carolina State dispensary. Thal. Boykin and Towill. members of the board of dispensary directors, were his friends on the board and ANNUAL MESSAGE Of Governor Ansel to the Legisla ture Now in Session. A STRONG DOCUMENT Ho Gives tho General Assembly In formation Upon tho Departments of tho State Government With Comments and Suggestions Gath ered From Gloso Observation Din ing (ho Year of His Administration. Gov. Ansel's annual message was read to both houses of thc General Assembly on Tuesday. Ile begins bis message by saying: "lt gives inc pleasure to say that wo havo been signally blessed the past year, at tho hands of the Al mighty, with health, with peace and with plenty-our people have been spared from famine and pestilence and from storm and cyclone; and, while during the past few weeks, there has been some scarcity ot mon oy, yet our barns and cribs aro full and no panie is threatening." Ho thou impresses upon the mem bers of tho legislature that "the highest of all honors iu to make laws to govern the poople. This honor has been conferred upon you by your constituents, and I beg that you bring to the duty assigned you your best knowledge and judgment." Tho Governor then makes the fol lowing recommendations concerning tho different Interests of the State: 1. An extra two mill tax for State purposes for tho next two years to pay tho obligations of the State as they mature, so that hereafter it will , not ho necessary for the state to bor row money to meet its current ex penditures, but to "pay as we go." 2. A special tax sufficient to pay the deficiency of several thousand , dollars In the revenues this year to meet tho appropriations made by the General Assembly at its last session in oxcess of tho revenue derived from tho last year's taxes. 2. Tho adoption of "the inquisi torial plan" In the assessment of all property for taxation. Ile says ^.ore i whether the valuation is correct, and tho "tax dodger" will be required to answer correctly or take the con s?quences. 4. Tho adoption of a stringent Act providing for the punishment of both landlord and laborer for violations of labor contracts, and making it "misdemeanor for one person to em ploy a lahore! who is under contract with another; such a law having been rendered necessary by the de cision of tho United States Court de claring tho present law relating to labor contracts unconstitutional." 6. Tho repeal of the lion law, which "has long since accomplished the purposes of Its enactment," and for the reason that its repeal would bo "hotter for landlord and tenant." 6. Tho amendment of tho Carey Cothran Act regulating the sale of liquor In this State "so as to provide that not moro than one county dis pensary shall be allowed in any county whore liquor is allowed to be sold, oxcopt In those counties where there are cities with a populaton ex ceeding 25,000," such an amend ment being, in th? opinion of the Governor, "in the interest of tem por?neo," and minimizing "the sale of liquor in the county dispensaries and In tho State." A further amend ment of the Act "providing that when an election is held in any county under thin Act, and the re turns show that a majority of the vot?is cast their ballots lo prohibit the salo in the said county, that the dispensai iou shall be Immediately closed and kept closed until the mat ter shall finally bo determined by the County Hoard of Canvassers, tho State Board of Canvassers, or by the Courts if resort be bail to tho Courts." Further amendment of the liquor law will be recommended by the Governor by special message during the session of the Legisla ture. 7. Tho passage of an act provid ing for now registration books in tho several counties of the Slate, and re quiring tho Commissioners of lieg Istration in tho several counties to revise the lists of names ol' the quali fied voters of t bo State. X. Tho careful consideration of the educational nooda of the State, and proper provision for tho support of the several Stale Institutions a;: re 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 letterhead:; of the Commonwealth Distilling Co., of Louisville, Ky., dated August 17. 1904. addressed, "My Dear Harney, and signed "Morton, A. G.,' with an unsigned postcript on thc fonrti: page. Tliia letter speaks for itself.' V I commended In the reporte of tho Stnto Supolrntendont of Education, and tho Board of Trustees especially charged with the diroctlon of those establishments. Among the other spoclflc recomomndntionH mado by tho Governor upon this subject is tho building of another dormitory for the Winthrop College for Women, encouragement "in every way possi blo of Clemson College," and by in foronco, liberal appropriation for tho South Carolina University and the South Carolina Military Acadomy. 9. "All needed appropriations for this Institution," the Instituto for the Deaf and Dumb at Ceda.* Springs, S. C. 10. Proper support for tho Color ed Stnto College at Orangeburg. 11. Tho consideration of tho De partment of Immigration as a ques tion of "great moment to our mater ial and industrial life," tho best so lution of the labor question hoing tho "bringing in of home-seekers, home hiiilders and desirable workmen." 12. The necessity of better accom modations for tho Supremo Court of the State, tho erection of a neat and commodious brick building on the State House grounds for this pur pose," and the appointment of a com mission to ascertain the cost of a building suitable for the purpose, snell commission to report its find ings to the General Assembly at its next session. 13. A liberal appropriation for tho nerdy "Confederate veterans." 14. Favorable consideration of the needs of thu military establishment of the State, and of the recommen dations made by the Adjutant Gen eral and the adoption of the amend ment to the militia laws as suggest ed by him. 15. A liberal appropriation for the maintenance of tho State Hospital for the Insane. ttl. The appointment of a State Health Officer who shall sive all of his nttention to the work of caring for tho public health. 17. A sufficient appropriation for tho building of an industrial school at Florence In accordance with the recommendations made by the Board of Trustees of that Institution. 18. An Increase in the. salaries of State officers and of Judgesof tho Su premo and Circuit Courts "to at least what they formerly were." "My ac counts," says tho Governor, "will show that it costs me more? than $1, 000 a year over and above my sal ary to pay tho expenses of living *?.nd of providing for such entertainments and rocoptiona as are necessary to tho dignity of tho position of Gov ernor of this State." 19. Tho nnnnlnlwn' ?"<* ? n..m.>ili. 20. Moro power to the Railroad Commission for the purpose of com pelling the railroads to comply with tho reasonable orders, rules and reg ulations made by the Commission. 21. Tho adoption of measures that will provide for the establishment of a system of drainage in each of th? counties of tho State; there be ing 4,879 square miles of overflowed and swamp lands In South Carolina, which could bo reclaimed and made healthful and arable by a well de vised system of drainage. In concluding his most admirable message, Governor Ansel reminds tho members of tho General Assem bly that "If South Carolina is to con tinue in her great prosperity much depends upon the laws you enact and tho provisions you make for the ad vancement of all her interests." The abovo is a short synopsis of Gov. Ansel's admirable message, but it gives a fair Idea of what ho re commends to tho General Assembly. We are indebted to The News und Courier for it. JUMPED TO HEH DEATH. Bich Boston Woman Commits Sui cide in Now York. Mrs. Herbert M. Sears, a member of a wealthy Heston family and guest at tho Hotel St. Hegis, Now York, committed suicide Friday by lumping from a thirteen-story win dow. Mrs. Sears had been a frequent visitor at tho St. Regis for so vor al ^ears. She always went lo tho hotel iccompaniod only by a maid and fre (UOIltly remained there for several lays Her actions were described by the boto! people as erratic and the ni aid alway;; maintained :t close watch over her mistress. The body Of Mrs. Soar fell on the roof of a four-story hui' ' :ig adjoin ing thO St. H?gl? hud tho fall was heard by residents ol that building. Mrs. Sears loft ll ame for her hus band. Tho hod ol Mrs. Soars was dress ed only i i night clothing and the appen1' of her room indicated thal . bad been lying in bod read In i he door loading to tho maid's ro< ni was bolted. t Hold Up Shot Dead. At Hos AngolCS, Cal., while cov ering with a rovolvor tho passengers on tho Redondo olCCtrlC car late Monday night, (Miarles Fray was Bol/.ed by lt. (). Wlrlliams, a plucky pnssongor, and was hot dead by Con ductor .lohn C. Greer. Tho hold-up's companion jumped from tho car and escaped FIFTEEN PRIZES To Be GIv JU by the School Im-? provement Association To the Rural Schools of tho Stute? and tho Schools ol This County Should Win Sonic ol Them. Wo wish all tho teachers In this county to read tho following offer and work earnestly for one or moro prizes. We want our county to be In tho front rank when it comes to matters of this kind, and we urge the teachers and all concerned to bo up and doing. The School Improvement Associa tion has decided to offer hf teen prizes to the schools of the Stato for tho most decided material im provement made during the given length of time. Five of the prizes aro to he $J0O each and ten are to he $50 each. Regulations concerning the fi'-eon prizes that are to he awarded by tills association are as follows: 1. Improvement must bc made be tween January 1st and November 15th, 1908. 2. Prizes will he awarded to schools where the most decided ma terial improvements have been made during the time mentioned. 3. tinder these improvements aro included local taxation, consolida tion, new buildings, libraries, inter ior decoration, beautifying yards, and better general equipments. 4. N?) school can competo for any of these prizes unless* it is a rural school. No town or city with moro than GOO population shall bo eligi ble to the contest. 5. All who wish to enter this con test must send names, and descrip tions of schools, before improve ments are made, to the president, prior to October first. G. All descriptions; photographs, and other evidences showing im provements must be sont to the pres ident before November 1st. 7. Prizes will 1>? awarded in chocks sent by December 1st. Tho prizes are to bo used for further improvements in the schools re ceiving them. Miss Nance is giving her entire 1 ;. i* boola, Clll cl|. pointed school houses as object les sons to the children. Wo would Uko to see one or more of these prizes captured by our county schools. DISPENSARY COMMISSION Makes Its Report to Governor Ansel on Its Work. The commission appointed by an act of tho legislature to wind up tho affairs of the former State dispen sary has made its report to Governor Ansel. It ls shown that the total as sets now on hand, including realty amount to $888,04?.! C, with liabil ities of $G IL',OGS.66. The total amount charged against, the counties is $6,53:1.10. Tlie report condemns the purchase of supplies in that bonds were not required and gross overcharges aro admitttd by representatives of tho various whiskey houses dealing with the dispensary. The commission also turns over to the Attorney General the names oC parties said to be guilty of misdeeds in their connection with the dispen sary. An account of the. Richland Distilling company of $1,500 said to have been owing was afterwards charged up $5,7 0 0. The report also shows that tho accounts of the State dispensary aro in a chaotic condition, some entries being transferred to make balances. CHINESE SAILORS MUTINY, Leave Steamer Rut Aro Forced by Police to Return. At Philadelphia, Pa., on Monday more than forty Chinese sailors on board the British lank steamer Ches apeake, lying at Point Breeze, mut ined because they declared Capt Wil liam dray had not furnished proper clothing and food on tho trip from Singapore to that port. The men clambered over the side of tho steam ar to the pier and the officers sent a call for tho police to a nearby sta tion. A squad answered the call and tho troublesome Chinamen wero sur rounded and driven on hoard tho boat. An agreement granting somo of their demands was signed by tho captain. Tlie Wily Japs. The award of bids for material for tho fortification of Pearl Harbor, Honolula, has been hold up for tho reason that it is believed tho low est bidder is a dummy for Japaneso contractors. It ls probablo that all bids Will bo rejected and that tho war department will conduct tho i work.