The Birmingham age-herald., 1911-08-06

fled time. The rebates run as high as s2 on a $10 case of goods. Although the whiskey dealers allowed the rebates as was their custom, the rebated money never found it's way back to the state coffers It was appropriated by the ringsters.
 Graft at Its Climax
 In 1904 the year before the legislative committee was appointed to probe the system, the graft had reached its height. The state board, at this time, consisted of W. O. Tatum, commissioner; L. W. Boylxin, John Bell Towill and H. H. (Hub) Evans, directors. .s
 .Boyi<in of Kershaw county, had been a small farmer and afterwards dis- pensary inspector at $500 year He ran for director of the dispensary, which, It must be remembered. paid salary or only $400 a year, and soon after getting the place moved to large plantation, which he had bought, and. built hand some mansion.
 Fatum, the commissioner, was indicted for complicily in the infamous label deal In this graft a northern printing firm received an order for 21 100000 labels for whisky to be bottled by the state, and the state was charged s34,677 for the labels. It Is estimated that the labels, if the state had needed them at all would have cost only about S7000 to $S0O0, if the deal had been legitimate.
 John Bell Towill was the editor of country newspaper when he was elected to the board. He was a Baptist and leader in the Young Mems Christian as- sociation. In two years Towill grew from a man of moderate tastes and habits to one living a life of luxury and extrava- gance He also was<indicted for conspir- acy 10 defraud the state
 Hest People" Come In
 1 tlaa tora xtifh ba clans. The best people, of South Car olna were drawn into its meshes. The Palmetto National bank was depository for much of the money that flowed in and out of the state dispensary. Many whisky firms were bonded by officers of the bank.
 In 1902 several capitalists. many af- filiated with the Palmetto bank. formed the Carolina Glass company. This com pany aeopted the method used by many of the whisky men of overcharging the state. The manager of the factory, on the witness stand at the investigation, admitted that the bottling works charged the state of South Carolina SS.50 for the same grade Of goods that was sold outside the state for o.50.
 It is a matter of competition and has nothing to do with the value of the goods. said the manager. The competi- tion was peculiar in that. to get an order. it was necessary to overcharge so that the grafters could make a profit.
 The contracts for goods usually went to the highest instead of to the lowest bidders. It was shown on the stand that the Carolina Glass company had over charged the state s240,000 since 1902, for bottles.
 County Dispensary
 In 1907 the state legislature of South Carolina repealed the state dispensary law and adopted the county dispensary system. J. Fraser Lyon. who was one of the mistakes on the Investigating committee had been elected attorney gen. eral fin the meantime. and had indicted and was prosecuting dispensary grafters The county system has many of the evils of the state system.
 The chief one, which Is of peculiar and vital interest to southern states, h that, In the old days, under the license system, negroes drank in the saloons where they were under con- sfant watch by the police. Under the state, as well under the county, dfspensary system, the negro buys his whisky by the gallon, hides It from The police until he can get 1t to places of social gathering, and there he con ducts an uncomfortable debauch. ....
 Under the county dispensary sys- tenn, many features of the state sys- tenn were retained. The county board of control of three has entire charge the board are appointed by the gov ernor one upon the recommendation of his delegation. one upon recommen- dation of the county board of edu- cation and the third upon recommen- dation of the mayors of the munich palities. The scattering of the ap- pointments is supposed to eliminate of he int
 Politics in the System
 Soon after this system was adopted some of the delegations secured the entire power of recommending ap- pointments, with the result that the dispensary again began to play part in the election of legislators Attor- ney General Lyon, so far has sue ceeded In keeping in practice the law requiring that purchases shall be mad e only by sealed bids. With a different administration. the system offers all the evils of the old state system. with none of the benefits of license and the control and regulation of the sa loon.
 A peculiar effect of the county dis pensary system Is the increase In H. qu0r consumption which it has brought about. Twenty-fOur dispen- saries under the new plan are sell 'ng more liquors than did the 39 coun- ties under the old license system. This in spite of the fact that no in- centives are being offered by dealers to push the sale of their goods Rep- resentative Neils Christensen, Jr, who was the other mistake" on the probe committee, says of the county dispen- sary system. Tn putting into the hands of public officials the power to purchase liquor, the door for graft is thrown wide open, and through it at any moment may enter corruption that will render the system as evil as the worst"
 The county dispensary has been in existence in South Carolina long enough to prove conclusively that it, by no means, takes the place of the well regulated saloon. Blind tigers" and "bootlegging' are as common in South Carolina as they are in prohi- ihtion territory. It seems almost i'm possible to enforce the laws regulating any kind of dispensary.
 Rome Dispensary It is the same in other states which have tried the country dispensary idea The writer remembers going into the county dispensary at Rome Ga, sev- eral years ago. This dispensary was sup posed to be regulated by laws similar to those under which the South Carolina dis pensary operates. Whisky could not be bought in less than half-pint packages and beer in not less than pint bottles. The writer with a friend called for bottle of beer and the dispenser suggest ell that as it was near 6 o'clock, the Clos ing hour of dispensary, more should be bought if it was desired The writer then purchased four bottles which were taken from tub of iced water back of the counter. The beer was wrapped in a n Q sr1Qy tl,o riff xx,it 90