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BIG SENSATION Coated in Columbia by the Old Dispensary Commission. WHAT CAUSED IT ALL. Tho Letter and Proposed Agreement That liaised thc Hornet's Nest. Names of Prominent Charleston ami Columbia Gentlemen Figure in the Caso.-They All Deny They i .They Are Guilty, Tlie commission appointed to wind up the old State Dispensary, sitting as ?i court, of Inquiry, held a special meeting <>n last Wednesday for tho purpose of making an Investigation of a certain letter purporting to bo signed by W. D. Hoy, n prominent liquor manufacturer of Louisville, Ky., and addressed to varions cred itors of the Stale dispensary. Tho letter, which is published in full herewith, fell into tho hands of Hon. W. P. Stevenson, attorney for tho commission, and ho advised thc coin mission that lt was a matter which demanded immediato consideration at their bands. The matter created a sensation as tho names of several prominent genllomon wero connect ed with lt. The hitter is as follows: Lotter Hoy Wrote. "Columbia, 8. C., Dee. 21, l it o7. 'Gentlemen: At a mooting of the creditors of tho South Carolina Slate dispensary, held at Cincinnati! Dec ember !), a committee was appointed for the pur poso of securing a set tlement., or al least to arrive at a tentative basis of settlement with tho commission in charge. For several weeks prior to this meeting I had been here and about effected ar rangements which, ii* a co-operation of creditors could be obtained, seem ed tO mo reasonably promising Of favorable results. I so aol i lied sev eral of the creditors, who presented my proposition at the meeting) und from tho telegrams sent, mo I sup posed il had been adopted and that tho committeo had bren appointed to carry lt out. I believe that quito a number at thc meeting were of tho samo Impression and to (hese 1 wish lo say that not a shadow of authority was given lo me to aol in any capacity whatever. Tho com mittee was represented here by Mr. Gop. 13. Lester, a member of it, and goberai counsel for Messrs. Fleisch man &. Co., who made Charleston his headquarters when he first roach the State. 1 met him there, and whilst somewhat disappointed at linding no power to act delegated to mo or my associates, determined not to let this abridge my efforts to got our money. 1 went over my plans With him and gave bim tho names of gentlemen associated with me, also a lotter endorsing lhe.se gentlemen from CJov. D. C. Iloyward and K. W. Hobertson, in whose bank about half of tho dispensary money in deposit ed. Mr. Lester seemed much im pressed, both with the plans and the eminent respectability, financially and otherwise, of the members of my Organization, sOVOral of the latter be ing officials or co-directors in banks with some member ol' tho dispen sary committee. "Mr. W. D, Melton, who. with SOino difllbtllty, was induced to join us, is the lawyer who was tendered and declined tho position on tho com mission now held by Mr. Stevenson. With these and other connections or relationships, not prudi nt io men tion here, Mr. Lister appeared much pleased, and gave me a letter autho rizing nie to go ahe ad with my plans. "Two days later he came to Col umbia, and at a meeting for the pur pOSQ i introduced him io three of my associates; in the discussion which ensued a difference of techni cal nature between him and .Mr. Mel ton, which Culminated as Mr. Les ter will admit, in quite a display of temper on his pai l. i\lr. Melton ? therefore declined to have anything further lo ilo with tho case, und with him I lost, forces without which 1 could accomplish noting. "Before i could patch np the un fortunate disagreement Mr. Lester was persuaded by rosy assurance from another element to adopt plans al toge tiler independent from mine. I stuck lo him, however, hop ing his strong personality might car ry him through, but knowing (hat he was pursuing a course into which others bad been allured only to meet with failure. He proved no excep tion. "Now, 1 do not Wish this lo be construed as a reflection upon Mr. Loster or (he vigor of his efforts. During UH; week I have been I brown with him my regard for him has grown daily. ile is a manly fellow of high attainment, and I think a lawyer of OXCOptlonnl ability, indeed, a man who under condition., approx imatoly normal would succeed iii al tnosl any undertaking, hut he is Wholly onl ol' touch willi tb OHO peo ple down here, nor has ho the tad to handle this situation. I am semi lng him a copy of this loller and be lieve be will confirm ail I have writ iou. "Now from a standpoint ol* re source I am perhaps more vitally in tOl'Ostod Iban any other creditor; ins claim ls over $40,000 and I want the money. A concent ral ion of tho claims or a major part of them is absolutely nocossary to got it and I a?kyo?'to^oliL.lft my plana to so curo a settlement. I ara unable to give you any flattering 'assurance of success, but I am freo to say that your claims will bo in tho hand3 of mon of unquestionable financial re sponsibility; mon who 'are aleo tri close business relationship with members of tho commission, and If they cannot get our money for UH no one ol so can/. "If you c?fa to join mo please sign and date tho enclosed agreement and return it to me, with statement of your account, by next mail, care of tho Columbia Hoto!, Columbia, S. C. Lot mo beg of you also not to insert any timo limit in this agreement, for If you do my parties boro Will not handle your claims. You aro at lib erty to withdraw when satisfied that no substantial progress is being made, and remember I shall stay righi here on the ground until sonic cr more, if the worst conies to the more, if the worst conies to the worst, and we have to appeal to the Legislature, or any local tribunal which that body may establish to pass upon tho claim, we would have in my organization tho strongest rep resentation to bf gotten together in tho State. Very truly, YV. 1). Key, President, Delroy Distilling Com pany, Louisville, Ky." Accompanying this lotter was the following proposed bul unsigned agreement, A grce1 m cut Proposed. 'We, the undersigned creditors of the State dispensary ol South Caro lina, hereby appoint tho National Loan and Exchange Hank, of the city of Columbia, S. C., and W. I). Roy, of Louisville, Ky., attorneys in fact for us and in our nanni to represent us ia the adjustment and collection or claim and demands against, the So u t li Carolina Stale dispensary, and to that end employ such attor j noys and others and to do all such j other thing as they may deem neces sary or advisable with power of sub stitution. Provided, however, that no authority is hereby given to In stitute any proceedings at law with out lirai referring ii i<> us and ob taining our consent thereto "And we do hereby agree to al low Ibo said National Loan and Ex change Hank and YY. JJ. Hoy six por cent, of all sums as may be hereaf ter collected, or paid, or satisfar.lor ily secured to be paid on our claim for such serviros as may he ren dered by them or other persons oih i ployed by i hem. i "And we do hereby authorize and : empower the said National Loan and , Kxchange Hank and \V. 1). Hoy for jus and in our name to collect, ro I eeiVO and acknowledge receipt for ?all such minis as may be paid on our ? claim, remitting to us the balance after deducting the said six por cent, for the services and expenses. "In tho ('vent disputes or differ ences shall arise as to tho amount due on said claims or the prices charged in said claims and demands, for as to any other matter effecting the amount thereof; lt is understood thal tho same shall bo referred to us for advice and instruction. "We also agree to waive interest on said (Maim and demands if such will bo found necessary to facilitate a settlement. "And we do hereby agree to fur nish lo our sahl attorneys In fact a full itemized slaloment verified of our said (daims and demands, forth with lip?n the execution of this agreement by us." Lyon Questions Hoy. After the letter had been read Mr. Roy was questioned as to Its contents Mr. Lyon asking the questions. Mr. Hoy said that tho agreement, with the letter had been signed by pilly four or live creditors whoso names ho gave, and that (l?ese claims repre sented less than $10,00'? altogether. Ills information as to the deposits of the commission had been obtained 'from Mr. Melton and Mr. Kulin. The gentlemen referred to as assn lei.'tied with him were Moiton Kohn and Nelson. Others were Indirectly interested, as referred to further Oil In the letter. Pressed by Mr. Lyon to s.i) what others .vere interested, either dlrctly or Indirectly, Mr. Roy said that only the Loan and Ex change Hank was interested and no ol hers. "Who occupied the relationship of codi rectors with members of the commission?" asked Mr. Lyon. Kohn and Moiton," replied Mr. Roy. Mr. Lyon called Mr. Roy's ntten tloll to tho fact that in the lotter he! used the word "banks" in tho plural, and wanted to know what oth?l banks wore meant. Mr. Roy said this was an error of the typewriter, ; as no other bank was interested. When askod to tell the plans re ferred to in the letter Mr. Hoy said he was glad to do so. He said that the creditors had received a lotter from Dr. Murray in September stat ing no condition as: to bringing tlie books before the commission, and later had received circulars saying the books would bo required, hut setting no date. Then the panic came on. He ((included thal the commission wanted to aid tin ir banks and he knew ?t would be a hardship to call on the banks to pay out the money at thal lime. Therefore he conceiv ed the idea ol' forming' an agreement with the banks so as to solve | lu sh nation and Iel the money ronnie on deposit. To do this he surround ed himself willi men above suspicion. Ile would iud be fool enough to east any reflection on me commission, in whom he had confidence. Mo said ho lind o'? intention of using undue Influences on tho commission. Other Names Mentioned. 1 Mr. Lyon ask0(1 if Mr. Melton was ono of tho Interested parties referred to, and Mr. Hoy replied that he hop ed to got. Mr. Moltou interested, but failed. "Why did he withdraw?" nskod i Mr. Lyon. Mr. Hoy: "I don't h now. Ile ls boro and can answer.'' Mr. Lyon: "Is it not a fact that Mr. Melton withdrew bocauso tho proposition Included tho use of mon ey improperly?" Mr. Hoy: "No, emphatically." Mr. Lyon: "What was tho $86,000 to bo used for?" Mr. Hoy. "lt was not that much, not half that much." Mr. Lyon: ' What was tho occasion for raising this fund?" Mr. Hoy: "lt is a reasonable per centage for attorney's fees." Mr. Lyon: "ls Mr. August Kohn an attorney? ls Mr. T. B. Stack ho USO an attorney? is Mr. .). L. Mlmaugh an attorney?" Mr. Hoy could not say positively, but he did not think the gentlemen named were attorneys. Mr. Lyon: "How was the G por cent tO !><? divided '" Mr. Roy: "1 do liol know; Mr. J Nelson is to gel it now, I gel about j $2,400." Mr. Lyon: "I low much was Melton i lo gol ?" Hoy: "I don't know." Lyon: "What was Ibo occasion for the disagreement between Melton and Lester?" Hoy: "li was in regard lo Lester's authority." Lyon. "Yon introduced tbreo as sociates who were they?" Hoy: "Mellon, Kohn and Nelson." Lyon: "When Melton and Lester disagreed who else drew out?" Hoy: "All of them Melton, Ned son, Kohn and .all the rest." Lyon: "What force can Kohn and Um others exert e>n tho commission?" Roy: "All thai he; showed to me was a good deal of activity in get ling malters tn shape te) present to tho banks." Mr. Mordecai's Plan. Queslioneel as to what he meant by others being urged! ho said h<> referred to tho plan proposed by Mr. Mordecai. Ho was asked to u-ii what Mor decai's plan was, and replied that he WOllld have- te) give hearsay, as he? was not prosonl ai Ibo mooting when Mr. Mordecai slated his plan. Mr. Roy Sttid I he-re were twei plans I presented, in the summer a paper , was sent him to sign, which he? dbl liol OVOU read ibis paper appoint ed Mordecai attorney, i Mr. Mordecai proposed lo secure a settlement through Mr. Stevensem provided a commission of twenty per cent we're paiel. The COmmittCO ol creditors having a communication from him (Hoy) el iel not lake Mr Mordecai up. Ho did not remomuei details e)f the proposition. Mr. Lyon: "Does the letter refer red to se-t forth the plan?" Mr Roy could not say. Mr. Lyon: ' Von stated Mr. Morde cai was te) get a settlement th rou gi Mr. Slovonson?" Mr. Hoy. "Mr. Mordecai so stat ed." Mr. Lyon: "Diel he explain hov Mr. Slovonson was to gel lt?" Mr. Roy: "I never ini't Mr. Mor decal on this question." Mr. Nelson then oxaminod Mr Hoy and brought emt that no moue; bael yet been collected by Mr. Hoy te be used In collecting the claims. lie asked what. Mr. Hoy knew a te) how his letter roached the com mission. Mr. Roy replied he beare it was sohl by Mr. Mordecai te> Mi Stevenson and that Mr. Stovonsoi ; bael sent a copy to every mombo except Mr. Arthur. Mr. Nelson. "Diel yem nave- an; I agreement with any but myself as ti commission for collection?" Mr. Hoy: "No." Mr. Nelson: 'Dbl yem expect te pay Kohn, Moiton en any one ; hut myself?" Mr. Hoy: "No." ! On tho redlrocl examination. Mr Lyon again questioned Ro) as te what his so-called associates we n- ri receive put e>i the- pian. Mr. Lyon: "Von said your ot he associates wore neu to receive any thing. When Will they receive any j thing ?" Mri Roy: "Never." Mr. Lyon: "When we're- they te? ge> iU?" ? . , Mr. Roy: "I dont know.' Mr. Lyon: "Ye>u mean Mhnnnugl and others?" Mr. Roy! "I (lld not say that, nevor saw these gontlomen." Mr. Lyon: "What was Kohn te got out e>f it ?" Mr. Ueiy: "I don't know Can' give? yem any information at all." Mr. Lyon "Was this plan dom with the- knowledge e>f Mr Robert son ? " Mr. Iteiy: I elem'! think it was." Mr Lyon: "Don't yem know wba Robertson knew?" Mr. Heiy. "iie> knew nothing bo yond (hat the? bank was lei be made ibe- depository. I drew up a paper ami when Mr. Roborlson saw il hi was opposed te> having anything ti ?do with the attorney's lVe>s. Ile em ly wanted tho banks regular eharg for exchange* and refused lei cute into the' first agroomont. ile- ne Copied tho ftgrOOmonl tO e-edle-e't (UV pay ove r t ho money." No Improper Moans. Mr. W. D. Moiton, tho well-know attorney ?>f columbia, was tho sworn, and he ?lated that he> had n objection to lolling what, he- kn<" aboul this pinn to colled Ibo claim against the dispensary. Tho prop? sillon bael boon made lo him lei co loci the' claims for six per cont, an he was to employ such RSBOClft) counsel ?niel assistance ns be mig' ANNUAL REPORT. Interesting Statement on Condi tion of County Dispensaries. llooltK in (?ood Condition-Coxl of Omeo Not Heavy-Aggregate Solos Very Large-Tabulated Statement. Mr. W. li. Wost, tho Slate dispen sary auditor, Thursday submitted his lust report to the general assem bly, showing the operation of the county dispensaries stace their es tablishment, in March. The report goes Into the work of systematizing the books in ouch county and ex plains how oach hook Is kept. All of these books have been examined and Mr. West has mot from time to time with the county boards and ad vised them as to the management of the business. The only shortage dis covered during tho year was in Col umbia When ene of tilt" dispers?is wiis $1,500 short in his accounts. This amount was paid up. Outside of this case tho books and accounts have been well kepi. Mr. West says that "tho cost of this ofllce Hom tho limo it was open ed In March lo the :ust day of Dec ember was $4,100. -17. Tho aggre gate gross sales made by all the dis pensarios in the Stale was $2,691, 663.-13. The total net profit was $695,056.01. Dy a comparison of these figures il is seen (hat the cost of maintaining this ellice was 3-20 of 1 per cent, of the gross sales, or 8-5 per cent, ol' Hu- net prolll earned. "After having had 10 months ex perience in the work it is my opinion thai it can he done' in accordance with the law if I am given the as sistance of two competent clerks and a stenographer, but as it stands now it is a physical impossibility for mc io cover the territory lu the limited lime required by law." "The gross sales of county dis pensaries (or tie- month of December wore as follows: Abbeville count y.$ I 6,6 I 2.70 Aiken count y. 15,3 I 2 Dam berg county. 9.857.38 Darn wei I county. 21,060.51: Deauforl roomy.I /1,7 S 0? 7 fi Derk eloy cob ni y. ft,850.6f. Charleston Comity.61.974.2t Chester county.1-1,77 1.O'! Chesterfield county .. .. 13,917. If Clarendon county . . . . 8,296.Sf Co I loto ii county .. .... 10,353.31 Dorchester county .. .. N.?.V.t.l." Fairfield county. 9,7S2.7G I Florence county.1 t',,7 1 :! Georgetown county .. .. 10,707 Hampton county. 7,978.GI Kershaw county. 15,535.07 Laurens county. 22,582.54 Lee county. 8,969.75 Lexington county. 9.260.32 Orangoburg county.. .. 32,099.03 Sumter county.22,014.53 Richland county.51,101.26 Williamsburg county. . .. 12,664.90 Total.$431,052.48 The total sales of county dispen saries for quarter, beginning Oct. 1, and ending December 3 list, 1907, are as follows: County. Prollt. Sales. Abbeville ..$14,600.00 $44,047.63 Aiken. 8,533.87 37,852.59 Dam borg.. .. 5,971.41 26,460,37 Doaufort.. .. 9,305.54 32,222.20 Derkoloy.. ..0,327.44 27,944.02 Harnwell ...16,386.20 G6,180.8G Charleston ..30,267.00 169,83 LOG Chester . . .1 0.18.-).70 37,083.13 Chesterfield.. 7.575.02 37,107.82 Clarendon .. 7,359.17 23,375.24 Col loton .. .. 6,280:1 4 22,380.21 Dorchester .. 6.037.94 22.421.7J Fairfield.. ,. 8,3 10.00 25,730.99 Florence. . ..10,120.5:5 48,207.17 Georgetown. . 14,71 9.39 43.226.8G Hampton.. .. 5,239.06 21,632.79 Kershaw.. ..1 2,306.98 10,602.4 2 Laurens. . . . I 3.138.24 M.I 06.64 Lee. 7.972.07 20,1 17.27 Lexington . . 5.23 1.3 I 23,286.20 Orangoburg. .24,555.65 s::, i -2 1.50 Richland . . .35,696.1 :! I 49,304.40 Sumter .. . . 24,334.03 6 1,843.64 Williamsburg. I 1,700.27 36,633.48 Totals. ..314.160.06 1,150,719.86 select Ho had several interviews with Mr. hoy and ono with Mr. Les ter. After duly considering the mat ter he had decided not to accept the proposition. Mr. Lyon: "Were you Impressed that improper means wen- to be us ed?" Mr. Melton: "Never at any time. There was no suggestion of improper use of money ol' lllfluonco. I thought I could ROt a fair hearing before the commission and there was no necessity for any proceedings in Court. I understood that the only matter ol" difference between the commission mid tho creditors was the matter of ovor-chargos, which could bo adjusted. I got this from Nelson, and ho from Mr. Stevenson. Mr. Lyon: "Were you familiar with the Roy letter?" Mr. Melton: "I was not. After I declined to take the casi- Mr. Hoy asked for an interview with me, and then Stated he would write a lotter. I did liol see the letter before ii went out or while l was. Interested. I have no connection with the matter now at all." 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