Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1911-04-21
DIsPENSARY GRAFT FACTS.
The Atlanta Lawyers Make Final Re-
port TO Windino-Up Commission.

port to Windins-U Up Commission.
The reply of Anderson, Fielder
Roundtree & Wilson, to the letter of
the dispensary winding-up commission
as recently reconstructed, abrogating
their contract and asking for a final
report. was published in the Columbia
State of yesterday. In this report, the
Atlanta lawyers review their case from
the beginning, state that they recog-
niZed the right of the commission to
terminate the agreement; but claim
that If a number of suits named that
Atlanta lawyers are entitled to pay for
a good deal of work that has already
been done.
A particularly interesting portion of
the letter tells for the first time how
the Richland Distilling company came
into existence, who held the stock and
how it conducted operations. The
lawyers say they have three credible
witnesses by whom they can establish
the following alleged facts:
The Richland Distilling company of
the state of South Carolina was built
and put in operation for the purpose of
supplying the South Carolina dispen-
sary with whisky. 1t was completed
in the year 1901 and began deliveries
to the dispensary on October 10, 1901.
Said company was owned and operated
by a corporation chartered under the
laws of South Carolina, the stock
holders being y. NJ. Block, A. Block
and l. Block of the city of Macon, Ga,
l. w. Bernheim of Louisville, KY, S. j.
Lanahan Of Baltimore, Md, and Jas.
S. Farnum of Charleston. N. M. Block
was the president and l. w. Bernheim,
the secretary and treasurer of said in
stitution. The first shipment of IL
quors from said distilling company to
the dispensary of South Carolina was
made on October 10, 1901, and consist
ed of SO barrels of X corn whisky.
Shipments continued down to practi-
cally the abolition of the dispensary
system. During said period the stock
holders and directors met at intervals
in the state of South Carolina for the
transaction of the business of said
corporation. The board of directors of
the Richland Distilling company n
tered into an agreement, by the te- ms
of which they were to furnish supplies
for the dispensary and to pay to the
states agents the following scale of
commissions: 81 a barrel on whiskies
sold to said dispensary; $3.50 a case
on whistles sold, and SIS per drum.
This scale continued for about a year
and a half or two years, when the
states agents demanded an increase
thereof, which was authorized by the
stockholders, when the scale was as
follows: SO a barrel, 50 a case and $5
drum. 1t was clearly understood
and agreed between the states agents
and the officers and directors of said
Richland Distilling company that the
scale of commissions agreed upon and
which were paid should be added to
the cost price of all liquors supplied to
the state.
We can establish by incontrovert-
ible evidence that the commissions
thus paid to the members Of the board
of directors of the state by the officers
and agents of this corporation, and
which were added to the cost of sup
plies so furnished, amounted in the ag-
gregate to some $4,000 per annum.
In the language of one of the wit
nesses, which we quote: AN accurate
calculation may show a considerably
greater amount"
We can establish that these COM
missions were paid to the states
agents between the 1st and 10th of
each month, the method pursued in
transferring the sums from the treas
ury of the Richland Distilling compa-
ny to the pockets of the states agents
being as follows:
The manager of the company in CO.
lumbia, who was an employe and not
stockholder, acting under the direc-
ton of the officers and directors of the
same, would draw a draft on l. w.
Bernheim, secretary and treasurer Of
said distilling company, and would
deposit the same in the Palmetto Bank
and Trust company of Columbia, s..
c., which bank would cash the same
and place the amount to the credit Of
the local manager. The local manager
would thereupOn draw from said Pal
metto Bank and Trust company the
proceeds of said draft and personally
pay the same to the dispensary
commissioners of South Carolina, or
their authorized agents. We can also
establish that these commissions were
carried upon the books of the Richland
Distilling company under the head Of
slave accounts"
You will observe that the state has
a demand against the Acme Brewing
company of Macon. You will observe
from the records of file in your office
that some Of the directors and officers
of the Richland Distilling company
are also directors and officers OF the
Acme Brewing company. We can es-
tablish the validity of the claim of
the state against the Acme Brewing
company by witnesses who are ready
to testify against them, unless settle
ments are made; that during the time
of the transactions above described Of
the Richland Distilling company with
the state, that the manager of the
Richand Distilling company conduct
ed the business for the Acme Brewing
company and paid commissions,
amounting in the aggregate to the
amount of our claim 10 the dispensary
commissioners.