The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1907-12-13

81 ispensary commission mericanl
Audit Company charge chaotihfon..
3ditions0f bookkeeping gross - 7eSs
~ of duty, misapplication of largagem.
and loose methods of condy Stpps
i%nstitutIon. Startling discft wiliS2ItSs
made and the report asseaen Gne
State nythossa9fso, 'llaIs
The company says I'll a@itn fSp9r-
tunity Of aSamining missing DIS
closures dwarfing Nose Jmsggmade
@ouldresult 1t suBIhits aoiikfor Se'-
600 for It's service.
Many irregulaSstjes Isrimlha.i,
8ties. g. W mgr
:: f For sc year aM .s
aegreerate 1900 and one book
over $500 Illustrating the loose
methods the report says:
UNAUTHORIZED ENTRIES.
"In orter to illustrate more fully
the extent to which unauthorized en-
tries were carried, we refer in de-
tail to twocntries in journal 1, folios
1913 and 1s4, for SIS, 900 each, under
date of5September 80. 1906, made
for the purpose of transferring
$40, 90Gfrcm the account of the Car
DINA GLASS Company to the account
Of tie Richland Distilling Company
Ita5pears that on April II, 1904, the
= sun Of $4,000 was paid over to the
palmetto National Bank of Column
5ia for credit of the Carolina Glass
#Company and that on May IL, 1905,
I an additianai sum Of SIS, ZOO was paid
10 the bank cited, for q like purpose.
These amounts were enormously paid
by the Palmetto National Bank to the
Richland Distilling Company.
The cash items referred to above
were charged on the dispensary
books to the Carolina Glass Comp
any's account and the wrong appli-
cation Of the $4,000 was presumab.
ly discovered by the auditor of the
Carolina Glass Company during the
fall Of 1906. A refund from the Rich
land D.etilling Company being unob-
tainable, the entries mentioned above
were passed on the ~dispensary books
without the authority, so far as we
are able to ascertain, of the proper
officials.
"The characteristic inattention an
notated above shows that the physi-
cal condition Of the accounts was an
tuiiNiioWH 4udllllCY W Ciic parry VI
parties responsible for their keeping,
irresponsible times elapsing before
discovery and adjustment took
place"
Many Of the original invoices are
not on file. The minute book of the
boardfor 1905 has been misplaced
In a testof the cash receipts of Cor
missioner Crum and Tatum, says
report, misapplication is clearly es.
tablished. Many items appear to
have been Intentionally omitted from
the books and thesc0mpany's repre-.
sentative asserts that losses reach in.
to tens Of thousands.
AS TO FARNUM'S ACCOUNTS.
The pages of the report are devot,
ed to the account of the Consumers
Beer Bottling Establishment and the
transactions of j. S. Farnum with
the State dispensary. "The accoun,
is badly mixed up" says the report
and it seems that agreements be.
tween this establishment and the
board of directors as to the amount
of royalty to be paid the State on the
beer sold were changed at intervals
without any records Of such charges
being made.
"A critical observation Of the man.
agement of transactions carried on
, with this company in successive stag
J es dispels the idea that a fair profit
D ever accured to the State out of
: the sales and repurchases Of beer.
Beer supplied by this company to
dispensers and hotels for account of
the dispensary was billed to the lat
ter institution at prices apparently
agreed upon, although at intervals
additional invoices were rendered to
the dispensary, ~recharging State
profits on original purchases resold
to the State as herein indicated
That the dispensary officials acouies-
ced to refund Of State profits is
shown by the credits given for the
additional invoices. No trace of the
authority room which this acouics.
ence emanated could be found.
FINANCED BY THE STATE.
The dispensary having abandon
ca these profits or royalties placed
the Consumers Beer Bottlinp rs
t~ablishment in a position to realize
q profit on beer obtained at first cost.
from and financed by the South Car,
DINA State ~dispensary.
mo agreement or contract he.
tween the State board of directors
and this company could be located.
and it was therefore impossible to
verify the correctness of the prices
and terms from which sales and our
chases originated.
"A thorough investigation Of this
account with the means at hand !eav-
es no doubt in our minds that this
company and its predecessor failed
to carry out the stipulations and con
ditions governing operations in beer
in the State of South Carolina.
1--WE recommend, in the int rest
of the State, that the books and ac.
counts of j. S. Farnum and his sue
cessors, the Consumers Beer RJt-
ting Establishment, be subj ,cted to
an examination with a view of dis.
closins the extent of transactions IN
account for in the statements fled
with the 5 ate dispensary commits
D SION"
Al In the account of the Atlantic
Beach Hotel, Sullivan's Island, the
books showed that a debit balance
lof $32O.95 was closed out on March
AL, 1908, by transferring same to the
account of j. S. Farnum. The sue