Historical Newspapers of South Carolina

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? ?: ? mm ROB SUMTEH WATCHMAN, Eatabl onsolldated Aug. 8.188 Cbe f?atrbnuni anb Soutbron. Published Wednesday ami Su turd ay ?BY? OSTEEM PUBLISHING COMPANY SUMTBR, S. C. Terms: 11.SO per annum?In advance. Ad verUaementa: One Hquare first Insertion.$1.09 Vrery subsequent Insertion.10 Contract! for three months, or looter will be made at reduced rates. All communications which aub eerre private lntereata will be charged far aa advertisements. Obituaries and tributes of respects Win be charged for. DISrtlSAIIY CLAIMS ADJUSTED IWIND-UP COMMISSION PUBLISH? ES ITS FINDINGS. By So*stag Accounts and Elimination Of Overctuirges, Graft and Fraud The State Haa Been Saved Nearly Half BliMoti DoUara?The Truth About Carolina Glass Company's Bhy Graft. Columbia. Nov. 18. ? About a half million dollars represents the sav? ing to the State of South Carolina by scaling.** from dispensary claims and overjudgment* against Arms doing business with the old State dispen? sary- The work of the winding up commission was practically conclud? ed last nlfcht at a late hour and Judgments rendered In all claims be? fore It save that of the New York and Kentucky company, which will be considered further today. A history of the old State dispen? sary ay*tem and Its graft Is Included In the commission's final report. That the whiskey firms failed to comply with the laws of the State in regard to the aale of whiskey, vari oua devices were used to prevent competition, that the board of direc? tor* of the dispensary failed to ad ^^g^a^f^^ cx Charges brought by the commission's findings. The firms that fought the State in the litigation In the Federal courts are taxed costs amounting to $21. 626. The net amount of claims con? sidered at this sitting of the commis? sion was $430.000. and the deduc? tions amounted to $226.000. This dock not Include the over-Judgments and the decrees formerly i endend. Th original fund was $630,000. Of consldrable local Interest and of much interest also throughout 'che State Is the claim of the Carolina Glass Company, a Columbia concern. The amount claimed to be owed this firm by the State was $23,013.75, which is completely wiped out by the commission's findings and an over Judgment rendered for $28,419.24. The over-charges found against this concern are $51.482.99, and It is by deducting the original claim from this amount that the overjudgment is found.- The commission issues a sep? arate decree against the Carolina Olass Company and goes Into the de? tails of what was alleged to be a mo? nopoly of the sale of glass to the old State dispensary. The total sales of the Carolina Olass Company to the State aggregated $514.329.90 before the year 1906. A large amount Is represented in the list of overjudgments and mem? bers of the commission and Its attor? neys state that the firms will be pro? ceeded against in the courts to re? cover the various amounts charged against them. Mr. Felder stated that the so-call ? n.m i. m e fund has already reach? ed Iff* Iff,a#| mark. Thla is the gaasjaf paid back by firms not repre? sented In the list of claimants but who were charged with overcharging the State. < ?tu* of the largest claimants and one that came in for aomo scorching when the original commission met Is the Anchor Distilling Company and Ullman A Co., two firms classed by the commission as one concern. An overjudgment of $30,621.55 Is found against this i omblnatlon. Including a proportionate share?$4,500?of the costs In the case. William La nanan A Sons are charged up with $23.563.46, al? though their claim against the State was only $5,916.54. The commission went back of the dates represented by this firm's accounts lr the claims against the State, as did the commis? sion In a number of other cases. Flelschmann & Co. and Or-ori Seligman Company are treated as one concern, and the $70,000 claim Is reduced to $45.646.30. This company admitted overcharges in affidavits. Clark Bros. A Co., another large claimant, Is given $63,780.96 on a Ished April, 1850. 'Be Just a 1. SUM! I claim of $60,383.71. The commission in its special re? port in the claim of the Carolina c.la.-s Company finds that the ofiieers of this concern entered into a con? spiracy to defraud the State of South Carolina by defeating all competition in the sale of glassware needed. The commission refers to a bid of the company In September, 1902, to furnish 60 cars of glass bottles at prices ranging about 10 per cent. In excess of the prices paid to Flaccus A Co.. notwithstanding the fact that other bids were filed. That also the Flaccus contract, when purchased, was for the purpose of stifling com? petition as all moulds of the Flaccus Company were turned over to the Carolina Glass Company and the for? mer had no facilities for filling or? ders. It Is also charged that at several quarterly purchases other competi? tive bids were suppressed and the Carolina Glass Company was award? ed contracts. That after December, 1902. and until 1906, when the con? tract existing between the State dis? pensary board and this company was canceled, this firm maintained a com? plete monopoly of all business for glass and raised prices from time to time much above the fair market prices for the goods sold. Also that at the time of the passage of the con? current resolution canceling the un? filled portions of the contract there were* outstanding contracts at exor? bitant prices for more than 200 cars of glass bottles at an approximate value of $200,000. The commission states that accord? ing to the testimony of one of the officers of the glass company tho State saved more than $50,000 when comparison :s made with prices paid for goods subsequently purchased. It is also charged against this firm that goods were sold of the ss.me quality, si/t and character as that sold the State dispensary in other States and in other parts of this State Trom 20 to 25 per cent, lower than the price paid by the State dlspen s? re. I* T^/gtfrttng is nas- fpllows }n the, case of the Carolina Glass Company. "We, therefore, find that the cjn t.v ts made between the Carolina Gloss Company and U *? board of di? rectors of the State dispensary are e ?: i r> to the law? of the State and against public policy and for those reasons null and void, and that the Carolina Glass Company should not, as a matter of strict law, be entitled to recover any sum of money from the State of South Carolina on ac? count of said contract, even If the State had no offsets against them whatsoever, but the commission fur? ther finds that It should determine the matter on equitable prlncipels and fix the matter of liability on a 'quantum merult' basis and that the prices at phich the Carolina Glass Company sold to the State dispensary the glassware manufactured by It ranged throughout the entire period of their transactions with the State dispensary except for the years 1906 and 1907 at about 10 per cent, above the fair and reasonable market price for said goods. The commission finds that the total amount of sales, after making all proper corrections there? in, made by the Carolina Glass Com? pany during the entire period of the transactions with the State dispen? sary up to the time It was abolished was $613.437. Of this amount the sum of $99,108 was for goods sold during the year 1906, and the short period during 1907, during which the dispensary was conducted so that the total sales made by the ?Carolina Class Company during the years pre? ceding the year 1906 was $514,329.90. The commission find.i that begin? ning early in the year 1906 as the re? sult of a legislative investigation made by a committee appointed by the general assembly of the State of South Carolina, and the resolutions adopted by the general asssembly, relating especially to the contracts \% Ith the Carolina Class Company, hereinbefore r< ferred to, the com? pany was forced to and did lower its bids to prices which during the year and the short period of 1907, during which the dispensary was operated, were substantially in accord with the fair and reasonable market price of the goods sohl during that period; but the commission finds that dur? ing the y ars preceding 1906 the ov? ercharges made in excess of the fair and reasonable market prices f<?r the goods sold was $51.432.20. which should 1>.. and |g hereby offset against the claim In favor of the said Caro? lina Class Company to wit; its claim of $23.011.71, which being deducted from the amount of said overcharges the commission fmdl said Carolina Glass Company to be Indebted to the State of South Carolina in the sum of $28,419.24." It was stated yesterday that tho nd Fear not-~Let all the ends Thou Air 'ER. S. 0., SATURDi case would probably be appealed to the Supreme Court along with a number of other cases ruled on by the commission. The following are the claims and the amounts to be paid the claim? ants: Claim. Judgment. Fleischmann . $70,885.87 $35,645.30 Schlitz B'w'g Co 24,682.23 18,813.73 Big Springs Co. 25,006.78 8,515.75 Roseneck B'wng 2,119.04 919.00 34,829.43 33,881.91 14,626.51 12,004.01 640.00 9,990.00 Co. John McSmyrle Lehman & Co. Darley Park Brewing Co. . Moyse Bros. . . E. A. Saunders & Co. Oeo. A. Dickel & Co. 2.300.00 Clark Bros & Co 66,383.71 Green River Dis? tilling Co. . . 3.648.42 Richards & Co. 1,175.00 Belalr Distilling Co. 6,386.41 235.00 8,176.00 40,883.23 35,806.83 1,700.00 53,780.96 3,153.42 1,112.45 1,423.96 Totals . . .$303,555.63 $215,178.36 In more than half the claims there were overjudgments rendered in fav? or of the State by the commission. As stated these may be collected through the courts. The commission states in its findings that the mem? bers have made a careful investiga? tion of the business of the old State dispensary and also all of the evi? dence taken before the legislative in? vestigating committee. Due and formal notice, states the decree, was given to all creditors to produce before the commission their books of . account and other records and correspondence disclosing the transactions between the creditors and the State dispensary, and In a few instances some of the creditors complied with this demand and pro? duced their books and records In part at least for the inspection of the com? mission. The commission also heard oral testimony and received affidavits from members ofkwhiskey concerns. The commission states that several of the creditors entered irfto a Con? spiracy with members of the boards of directors to cheat and defraud the State with the assistance of some of the memebrs of the board md goods were sold at a price large a excess of the market value, the officers or agents of the concerns and members of the board making use of the funds In corruption and bribery. It Is also stated that many of the claimants did not comply with the law in that: 1. They resorted to various de? vices to destroy competition. 2. The law as to advertising for bids was so worded as to prevent competition Instead of promoting it. 3. That bids submitted upon which awards were made were exor? bitant as to prices with the knowl? edge and consent of the board. 4. That the claimants violated the law in maintaining agents ant' solici? tors in the State to obtain contracts for the purchase of their goods. 5. That in many cases the bonds vrere furnished on awards given. 6. None of the claimants filed at the time of making bids an analysis of the liquors for sale. The commission rules that the claimants have all violated the law, but thinks that it should deal with petitioners uopn equitable principles adn make such settlement as will be fair and just. It therefore finds that it should compensate each claimant for goods actually sold and delivered the State dispensary during the whole course of dealing by paying the real value of the goods after de? ducting from the claims of some of the claimants certain fees and expen? ses Incurred by the commission in defending the recent suits. It is also ruled by the commission that certain claimants who filed bills In the Federal court asking for in? junction against the commission in? clude the firms of Garrett & Co., Plelsohmann & Co., Wilson Distilling Co., Gallagaher & Burton, Jack Cran ton Company. The bills brought by Plelsohmann, the Wilson Company, ths Jack Cranston Company and (ial lagher & Burton were consolidated Into one action into which Garrett & Co, afterwards intervened, followed by Uio Big Springs Distilling Co., Ull man Jfc CO., Anchor Distilling Co., li< lair Distilling Co., Richard & Co., and ths Xew York and Kentucky Com? pany. After reviewing the victory won by the State of South Carolina the com? mission calls attention to the fact that the light carried to the United States court cost $21,526.17 and con? siders the State damaged to that amount. The various companies* mentioned above are assessed pro? portionately this amount. and ! ns't at be thy Country's, Thy God's an \Y. NOVEMBER 20. The Overcharges. The following overjudgments were found by the commission: Cook & Bern . 94.89 36.553.63 William Lanahan & Sons. ... 5,916.54 23,563.46 H. & H. W. Ca therwood . . . 4,227.95 24,070.00 Acme Bwng Co. 674.80 14,965.20 Gallagher & Bur? ton . 4,845.06 18,041.26 Strauss, Pritz & Co. 7,980.56 12,419.44 Wiedemann Bwng Co.. 487.50 4,016.50 W. W. Johnson Co. 1,945.99 1,091.64 Savannah Brew? ing Co. 409.50 160.00 Ullman A Co. (Anchor Co.) . 36.926.78 30.621.55 Jack Cranston Co. 5,951.50 1,064.42 Rheinstrom Bros 296.08 103.92 Barbee & Co. . 109.58 409.44 Garrett & Co. . . 1,757.39 21,397.20 Wilson Dist. Co. 2,874.73 347.17 King & Co. . . 6,395.84 Total . . . .$80,594.69 $189,365.81 Claims Paid. The following were paid by tin commission on March 6, 1908: Firms. Paul Jones & Co. Anheuser-Busch Brewing Co. . . . Augusta Brewing Co. Frank G. Tullege Co. Live Oak Distilling Co. J. A. Magnus & Co. Old "76" Distilling Co. J. F. Bickman. belroy Distilling Co. H. A. Theirman. D. Eacks & Son. Marin, Hart & Co. H. Rosenthal & Son. Total. The Summary. The following is a summary show? ing the amounts saved to the State: Overcharges in list of firms to whom money is to lv rfcid by State.... $ 8S.377.17 Overjudgments. 189,364.81 Claims which come to the State along with the overjudgments. 80,594.69 The 1908 overcharges.. . 25.356.21 "Conscience" money .. .. 50,000.00 Total saved to the State and to be recovered.. $433,692.91 The settlement of the fees of the attorneys interested in the case will be brought up today. It should be understood that in the case of overji.dgments the original claim thus ccmes to the State also. In general the charges against the firms against whom overjudgments were found are that these firms over? charged the State and paid rebates to members of the board and their agents. The comments of the com? mission on the King & Co. clam are interesting. The commission states that this firm failed and refused to comply with the mandate to produce records, etc., and the total claim Is wiped out?amounting to $6,395.84, but no overjudgment is found In the case of this firm. In the closing paragraph of the de? cree Chairman Murray of the com? mission is directed to pay the ac? counts as set out in the findings of the commission. The members of the commission are: Chairman, W. J. Murray, of Columbia; Avery Patton, Greenville; John McSween, Tim monsville; J. Steele Brice, York; A. N. Wood, Gaffney. Four claimants escaped the scaling of the claims. The commission states In regard to these that these "par? ties have no part in any of the fraud? ulent transactions connected with the conduct of the business with the State dispensary and the chairman of the commission is authorized under proper warrant to pay the claims." The four claimants are: C. P. Fish burn. $70.50; S. S. Pierce ft Co., $622.13; Acker Merrell ft Condit Co., $645.82; E. LaMontague & Sons, $457.50. LIPTON WILL CHALLENGE. English Sportsman \\ ill Again Try to Lift America's Cnp. New York. Nov. 17.?Sir Thomas Lip ton will challenge for a race for the America's cup to be sailed in 1911. Sir Thomas made this state? ment just before sailing for Europe today on the steamer Lusitania. Sir Thomas has been here for sev? eral weeks to learn the attitude OL members of the New York Yacht Club on the question of modification of the rulei governing the Amerca'. cup. What assurances, if any, he re celved Is not known. Beaufort is to have a new tele phone company. / / v d Tr THE TRUJ 1909. New Seri MITCHELL NQ1 SUBDUED. stiks TORONTt. OONVKA'TIOX WITH RINGING SPEECH. DeclMCi for Right 10 Bestow Pat? ronage Where He Prefers?Asserts Pride in His Country. Toronto, Oont., Nov. 17.?Indors? ing a report of the committee on boy? cott, John Mitchell, one of the three officers of the American Federation of Labor, who are under sentence for contempt of court, made a dramatic speech to the convention of that or? ganization at today's session. He de? clared that as far as he was concern? ed, regardless of consequences, he in? tended while at liberty to declare for the rights guaranteed him by the or? ganic laws of his country. The report which drew forth Mitchell's speech, and which was adopted by the convention, among other things declared: "We say that when your cause is just and every other remedy has been Amount Amount Amount of Claim. Allowed, saved State $21,176.63 $14,927.88 $ 6,248.75 19,551.00 9,504.09 10,047.00 1,615.00 1,211.25 403.75 1,135.94 1,049.69 86.25 29,922.22 26.190.82 1,781.40 18,204.24 16,648.76 1,555.48 3,662.83 3,208.33 454.50 2,774.70 2,561.22 163.4S 40,008.33 38,004.17 2,004.16 4,509.51 4,238.94 270.57 9,228.30 8,674.60 553.70 9,021.33 8,480.05 541.28 15,847.44 15,500.34 341.10 4,524.11 3,619.29 904.82 $179,181.67 1153,825.43 25,356.24 employed without result, boycott; we say that when the employer has de? termined to exploit not only adult male labor, but our women and chil? dren, and our reasoning and appeal to his fairness and his conscience will not sway him, boycott; we say that wfien Tab'bT^fias' Tbe^h"r o"p"$re'ss<'rl. browbeaten ani tyranized, boycott; we say that social and political con ( ditions become so bad that ordinary remedial measures are fruitless, boy? cott, and finally we say, we have ? right to boycott and we propose to exercise that right, in the applica cation of this right of boycott, I? paraphrase the president (Gomper<) we propose to strive on and on.'' The convention broke into loud cheering for Mitchell as he conclud? ed and thw were cries for "Morn s ?n." The secretary did not resnan.l. President Gompers was absent. Mr. Mitchell said he realized that every statement made by those on the convention floor, and especially by those who on next Monday will have to deliver themselves to the courts, is bein? closely scrutinized. "I want the people of the United States to know my position," he said. "I shall not speak defiantly; but the the consequences what they will. T shall not surrender any right guaran? teed to me by the constitution of our country. I am not sure how much mental and p lysical suffering will be necessary to make me submit, but if 1 know myself, not any amount of suffering will persuade me that 1 have not the right to spend my mon? ey where I please or that I have net the right to write and speak a::- I plvase, being responsible under the law for my acts. "Whether the boycott be a benefit or a detriment, each man must de cide where be will bestow his patron? age. I maintain that my patron. ^ is my own and no merchant has a proprietory right to it. "I understand that cognizance is being taken at Washington at the utterance of men on the floor of the convention and I want clearly to state my position. I propose in the future, as I have in the past, to ex? ercise the rights secured to me by the fathers of my country; and I pro? pose If I am sent to jail to declare again when I come out that I shall not for myself purchase any product of the Buck's stove and Range Com? pany. "I repeat that so far as 1 am con? cerned, and let the consequences be what they may, 1 Intend while at liberty to declare for the rights guar? anteed to me by the organlo laws of my country 1 am proud of being an A merican. Mr. Mitchell said he had grown op as an American?witu s stepmother bo poor thai she could not buy bread, and related how he had crept out of bed at night to get his l'athei s soldier coal to keep him warm. "But 1 want to see the word Ameri? can stand for all the sentiment that is symbolised by the fiag of our country," he continued. "1 want real K SOUTHn< >x, Established June, ISM les?Vol. XXX. .No. 25. liberty. I don't believe in the liberty enunciated by some of our courts that men and women should have the right to work themselves to death. I don't believe in the liberty enunciated by Judge Tuthill, of Chi? cago who declared unconstitutional the ten-hour law for women, and by that act compelled them to work 14 hours a day." Mr. Mitchell said he believed the present proceedings would bring home to the people the necessity of working in concert. "Is the time go? ing to come on our continent when the badge of faithfulness to labor must be the brand of imprison? ment?" he said in conclusion. "Sure? ly I hope not. I hope that the gov? ernment may be so conducted that no citizen may feel that he has not been given Justice and an equal right with every other citizen." The revocation of the charter of the Ohio State Federation by the ex? ecutive council for admitting to its membership seceding locals of the electrical workers was approved to? day. The convention then adopted the report of its committee on laws that the appeal of the Ohio body be dismissed. The executive council was directed to attempt to unify the trade unions of Ohio in the new State Fed? eration. The plan adopted of settling the disagreement among the electrical workers was recommended to the con? vention by its committee on laws. It called for the appointment of a com? mittee of thr ee trade unionists to call the proposed convention of the elec? trical workers. THANKSGIVING PROCLAMATION. Annual Proclamation Is Issued by Go v. Ansel. Columbia, Nov. 18.?Gov. Ansel yesterday ,in accordance with the **? usual custom, issued his Thanksgiv? ing proclamation, naming Thursday, November 25, as a day of general thanksgiving He gives many rea? sons why the people of South Caro? lina should .give, ^n^j.^gMsaBglMS has had an unusually prosper^ - year and in all lines there are Indications of many new enterprises and of older corporations enlarging their plants and output. Therefore the procla? mation will be read with Interest by the people of the. State. It Is as fol? lows: "Another year has rolled around and another mile-stone in the com? putation of time has been reached and we come once again to the har? vest time and the day of thanksgiv? ing. In conformity therefore, to the long established and beautiful cus? tom of observing this one day as a day of thankfulness and joy, I, M. F. Ansel, governor of the State of South Carolina, do hereby designate and appoint Thursday the 25*h day of November, A. D. 1909, as a day of general thanksgiving. "The people of South Carolina have many things to be thankful for. The fields have yielded their fruits In good measure; we have been .-pared from pestilence and famine; we have had no epidemics of sickness; we have had peac-' with all nations and a fair return for all our labors. We should be thankful also for the full measure of religious liberty that we enjoy and that we can 'worship God under our own vine and fig tree with none to molest or make us afraid.' "Let all the people, therefore, put aside for the day their usual work, assemble in their churches, as well as in their homes, and give thanks to God for his many tokens of love and kindness to us as a people and as a State. Let us not forget the poor and needy and the various orphanages within the State, where the fatherless and motherless ar cared for, but let us remember them in our prayers ss well as with our means and thereby bring a little sunshine latO their lives. Let us a'<o pray for a continuance of God's grace and good 11088 to us in the coming years. "Given under my hand and the great SI al of the State of South Carolina at the capital in the city of Co lumbla this, the 15th day of No? vember. A. D. 1909. and of the in? dependence of the United States of America the l?4th. "M. F. Ansel. "Governor. "By the governor: "R. If. McCown, "Secretary of State." The new $10,000 armory of the Georgetown Riue Guards was dedi? cated Wednesday. Gov. Ansel and a number Of prominent public men were present. The Spartanburg Broom Works and seven cottage s adjacent were burned Wednesday. Estimated loss $20,000.