The herald and news. [volume] (Newberry S.C.) 1903-1937, 1908-01-24
RECEIYERSHIP ASKED
FOR DISPENSARY FUNDS
JUDGE PRITCHARD SIGNS Or
DER NCITING COMMISSION.
ALLEGED That Members Placed Mon
ey in Banks in Which They
Were Interested.
The State.

Asheville. \. e., Jan. 21.-In Unit
ed State, circuit court today Judge
J. {. Plitci!ard Si iYnei an order cit
ing the dispensarE commission Of
South Carolina to appear mere on
Wednesday, Jan. 20, and show cause
why the relief prayed in bill OF
complaint filed by FleiSchmanl &
Co., Of New York creditors of the
dispensary. should not be granted
and a receiver appointed to take
charge Of the funds held by the dis
pensary commission, and the affairs
of the commissi II wound up.
The bill Of complaint filed by at
torneys representing Fleischmann &
Co.. is interesting and in parts SEN
sational. The complaint in effec;
charges that the dispensaiy commits
sicn has failed to pay the claims Of
the creditors because the commits
sioners are financially interested in
the banks in which the great sum Of
a!most S1.0OO,000 is deposited. The
bill alleges hat the commission has
violated it's trusts and receiver
should be appointed to take charge
Of the monies and affairs now under
control of the diSpensary commission.
The bill in part recites that said
defendants are abusing the trusts
reposed III them by wrongfully and
unlawfully failing and refusing to
carry out the terms and provisions
of said act of 1907 Of the general as
semblv Of the State Of South Caro-
Ina, and that the greater part OF the
money which tie defendants have re-
ceived. as aforesaid. mas been on de-
posit fur many months. and is now
on deposit in certain banks in the
State Of South Carolina, in which
banks the said defendants or some of
them. are respectively interested.
either as officers. stockholders or d.
rectors: that a large sum Of said
manev is now in the National Loan
and Exchange bank Of Columbia, in
which bank the defendant, Murray,
who is the chairman Of the dispen-
sary commission, is a large stockhold-
er and director; that another large
portion of said money is deposited
in the Bank Of Timmon5ville, in
which said bank, the defendant, Nc
Sween, is a stockholder and director,
and is also its PRESIDENT; that an
ether large portion CT said money is
on deposit in the Peoples bank Of
Union. in which bank the defendant,
Arthur. is a stockholder and director
and also its PRESIDENT; that another
large portion of said money is on de-
post in the Bank Of Aiken. in wnrco
bank the defendant, Henderson, is
stockholder and director; that anoth-
er portion Of said money IS deposited
in the Piedmont Savings and Invest
ment company of Greenville, in which
the defendant, Patton, is a stock
holder and director, and portion of
said money is deposited in the Mer-
chants and Farmers bank Of Cher
aw. in whicn bank one W. F. Stew
enson. who resides in the said town
of Cheraw and who is the attorney
for the defendants constituting the
State dispensary commission, is a
stoekholder and director and also It's
president.
That the said defendants have
wro1gfully, unlawfully and fraudu-
lently declined and refused to make
distribution of the said money among
the creditors of the said State dis
pensary or to pay the claim of your
orator or any of the other of said
creditors, for. the reason, as your ora
tor verify believes and alleges the
fact to be, tnat there has been form
ed and now exists an unlawful un-
derstanding or agreement between
the defendants by which it has been
decided that the money deposited IN
the banks above named shall he held
and allowed to remain as long as pos
sible in said banks and be used by
them for their own benefit and pro-
fit.
Attorney General Lyon of South
Carolina was present in the interest
of the dispeasary commission. That
side contends, in effect, that certain
claims of creditors are not genuine;
tnat undue influence was used IN the
purchase of goods and too great a
price was paid. It is understood that
there are claims agg7'egatlng about