The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-05-10
GRAFT CHARGE
AIRED in court
South Carolina Dispcnsary Scan
dial Comes Up in Shape of
Federal Appeal.
GLASS CONTRACT INVOLVED
Winding-Up Commission Alleges
That State Was Bled by High
Rate for Bottles.
GLASS CONTRACT INVOLVED

The rags of an old South Carolina
dispcnsary scandal, involving the al
legged grating from the State OF $4,000.
were shaken out afresh yesterday in
tho United States Circuit Court of APP
peals, when attorneys presented argu-
ment In the case OF the Carolina Glass
Company against w. j. Murray, John
McSwccn, a. n. Wood, Avery Patton and
j. S. Brice, who comprised the Dispen.
sary Commission. The glass rnanufac-
turing company is suing TO obtain from
the commission a claim of S23,013.75.
which tho commission refused tho
grounds that the company should make
restitution OF twice that amount TO tho
State for overcharge for bottles fur
nishcd the dispcnsary.
The case was brought up from the
United States District Court for the
Eastern District Of South Carolina. in
which the Carolina Glass Company in
stitutcd proceedings against the state
Dispcnsary Commission on December
l3. 1911. The charges were aired be-
fore Judge Smith. who dismissed the
suit and upheld the commission on
June "a, 1912. The appeal was taken
on the grounds that in investigating
tho conduct of the dispensary in years
preceding It's own creation by the Leg
islature. the State Dispensary Commits
sion overstepped it's powers
Held Long Term Contract.
In n period extending over dozen
years, the Carolina Glass Company, Of
Columbia, S. c.. supplied tho State Dis
pensary with glahs bottles. demijohns
and liquid containers on contract. In
tho course of that time tho contracts
awarded this company amounted to
$6l3.f3I. Prior to 1906, the commission
alleges, the contract was awarded to
the Carolina Glass Company at prac-
tically any figures the company chose
to name. but. beginning In 1906 and
continuing as long in 1907 as the dis
pcnsary was operated. the Carolina
Glass Company WAS forced to mate
rally lower it's bids and come into open
competition with other concerns
The South Carolina Legislature of
1906 agreed TO abolish the existing sys-
TEN OF conducting Il single State dis
pensary, and allow each county to OPP
crate it's own dispensary. Accordingly,
On February l6. 1907, an act WAS passed
appointing a State Dispensary Commits
sion. with power to wind up the affairs
of the liquor business. settle all out
standing claims against the dispensary
and close its books. on this commits
sion were appointed J. w. Murray.
John McSwcen, a. y. Wood. Avery Pat
ton and j. s. Brcc.
" In le06 and the first part OF 1907 the
Carolina Glass Company filled contracts
=
10 S99l0S, on which a balance OF
s23.ol375 was still due when the Dis
pensary Commission began its duties.
The glass company presented its claim
10 the commission, and on November
II, 1909. the commission filed it's an
swer. admitting the justice or the
claim. but declaring that the Carolina
Glass Company was indebted TO the
State OF South Carolina for $5l 1929
for overcharge in contracts preceding
the year 1906.
Said State WINS Overcharged.
The commission said:
THE commission finds that the bids
OF the Carolina Glass Company that
year GS06) and the short period OF
19U. were substantially in accord with
the fair and reasonable market price
of the goods sold during that period.
but the commission finds that during
the years preceding 1906 the overcharge
made in excess OF the fair and reason =
able market price for the goods sold
was s51.432.oa. which should be. and Is