OFFICE OF THE ATTORNEY GENERAL OF TEXAS
**AUSTIN**
**o- 0.**  **YInrc --mu** 

**, e4** 

**$ PJNA** 



### Boaor8bla Bert 

### Ford,hdnlnirtrator Tar8 

### Liquor ControlBoard Austin,Tax88

**Dew** 

### Slrl

requsrtlngour op 

### Ity ai th8 LIqu inyour lrttrr

**@** 

### p@lUit **i8 8U8d**  

### Iolationpi tin J **ritrr** 

### 8uoh auld tmdor 

### th8 -8

Thra0r:eretIon took 

### .ot$3,000,rhloh wa8 rubPhillips **hCkae8** 

### Store, **hWor~at.d,** 

### ha8 8pp11d **to** 

### thrLiquorContml **lb8rd** 

# r0ra pInit to Opcrrt@8 pOk8eO 8tOr8OXI prWi8@8 OWlI br 

### per61 Phllllp~. The Bo8rd 

### ir r&ii384th8t ?rrnki8 

### 8iUOrly

### i8 th8 

### rlfaof ha8 8iImrlywho, for th8part 188r, h8 **b8Ua** 8ap1Or84 **in** the p8OkQa 

### 8tOr8iOrshish ParatPhillip h8ld 8 PeEnit OallOa18d by thr ti8I-d. -8 **6iiLWlt WW**  **tWiO8** 

### ODWiOt8d OfViOl8tiw th8 Tar88 Liq,uor

### OentrOlAat, tha 

### ilrrt inrtanoa bdna hbx'la8rt16, 1936, an4 tbr 

### 88OOlld iMt8M8 brlq hbmM?t 26, 1936. IdO lt81r Wa8 aadar iUhULOtiOS 

### forliquorriobtlon in 1934, 8ad 

### h88 b88iOp8reting

fo ti8W Oi four lettar, you **88k qU88tiOIlS**  **t** tha ronigoipg hot8 out1lna4 In 

### ouroplnloa upon th8 **r0ii0airrg**

'Tha'qU88tiOU d8a8 88 t0 What **flrribilit~ Of**  **18W** 

### 8Xi8t8to **pST8lit** l 00~ or8tion to raak and obtdn a priti1w8 d8Ilid 80 inaitichql., 8rd Whhst 

### fart88nd Oir8U8t8tiO88 

### would jU8tie thi8 lb8rd in d8n7hg 8 p8mit 8ppliad ;~,;a a oorporatlon unbar tha 

### l xlating

"TOwhat 8XtWt 

### =8t th8 8XWOi88 **of fraud**  **OF 8Ubtartug8**  

### k 88tablirhad t0 jU8tifr a rafU881 Of 8 

### POreit 8Oueht **br** 8 @OrpOl%tiOlY?”

A8 w8 int8rpret 7 ar elU68tiOn8, that r818t8 to tha snma rubjaot, sad thaf will thrrrrora ba **SMWar8d** togathrr.


### fn **our** 

### opinion,ItCanmt be 8814that 88 l mattar of low undrr tbr fSOt8 atatrd, the Taxar Liquor Control Boar4 WX~& ba jurtISIa4 lo refiring a permit to tha oorporatlon. 

### &?;(iTrr, tha 

### iclOtOfrhloh tb BOQ-d h98 nOtiW lre Unply 8UffiOiULt t0 Warrant th8 Board in aonduotiq 8 **had.ri6** to **datrrdn8** whathar Or **not tlm**  aorporatIoonIS **bdry wad**  **a8 I**  

### 8ub.rrfa%r 

# to
ow8r th8 intandad oprrdion oi 8 

### liquorbUSiin.88 by di8poalifid persona or tha operation ot ruoh **bU8in888** 

### in 8D iuje8i 

### iDaMar,ati if th8Board 8OnOlnb88 

### that th8OOrpm8tlOn I8bra 80U88d, it ha8 

### 8uthcrit;l to
**ranarr tha**  pmnllt.

## 793

BOCbOr8bl8krt Ford, pm8 3

Tb f8Ct8 8tCtid in JOrU 18tttr 40 not On 

### their **iat8** 8hOW th8t th8 **OCZpZ ’** **at iOB**  **18 di8QMlifi8d**  **?r** h0iabg 

### thrpermit. **Earln~ never**  rn~a~ad In th8 liquor buBin.88, the Oar bnttion, &Iiltr Of 8af TiOP of O~pnr, ha8 **not b88n**  **8tiOtl8** Of the 8Ot, 8od it Wm thartior, b8 Il80888~r~ icS th8 board to **OODdUOt t**  hs8rlq IU **Order** t0 **d8ftrmint** whtthar or nOt f8Ot8 d8t WhiCh 8&W th8t th8 **OOrpOretibII Wa8**  **IWt iOr8d**  in ($004filth, but otr81y t8 8 **8Ubt#rfU&8.**

The Doer4 or the A3ainIctrator I8 roquirab br Artlolt 666-11, Vernon’8 Pant1 Coda, to rsfurr t par.& aftrr 8 hterlng in whioh it fin48 enf or the 6FOUlld# t0 8xi8t *Ioh tr8 lirtad in Uid trtiO18. In 8pp17Ing thi8 **rtututa,** it **18** to **be** ramsnburrd that “Th **Ttxer** Liquor Control **Aot** 18 intend84 88 **an axtr**  0180 of the pcllitrpaatrr of the State 

# to prottat t&a health, wyllfara, 5~808 ard tamparenoa or Ita paoplr; and all of It8 provI8lom 8rt to bt oon8trut4 llbtrtll~ t0 tffUttU8tU rush purpo8a8.w Texas Liquor Control Boer4 V8. &mint Exohanat 8001tl Clubs 127 9. Vi:‘. (24) 967. The flnding8 of hot **aurt be**  **mtdt** by the Board or the Adaioi8tr#tOr, rnd when bared UpOKI subrt;zf;l arldrnc4’,

will not be 

### rettrI48 **by** the court. Liquor Control Board 18. **fO!lt8, 112**  **9. B.**  (24) **2311** ;;;;a Liquor Control Board ~8. Lanz8, 129 S. N. (24)

. slnor the Eour4 or tha Mainl8tretor mart hold the herin 8n4 8808rtein the i8Ot8, It 18 !lOt vlthln 

### cur prorinor \io rtata whet the COUOlU8iOM of the Boer4 or thr Adainirtretor should 

### br **upon** any l rI4aoet whloh nay **be** heard. Howatrr, it I8 our opinion that the Eo8x-4

### ha8 authority to r rfulra l pamIt 

### where It 

### tinesa8 a iaot that **the** COr~rrtiOn he8 btrn tormrd for th8 pUrpO88 Of **btfng U8td**  **It** l rubtarfugr to oottr the oparetion of the busint88 by 8 4irq~tllfItd parron or the oporatlm Of th8 bU8&888 in an illegal mnnar.

~paolr~0~ii~ rrfarring to th8 ca88 *Ioh I8 thg rubjret **ai pur**  **18 ttar,**  **wa** balir~a thr tollo*l~ ooml4aretIont **8r8 partinrntr** 

## . 7!j:

Eonorebla Bert Tore,

### pa?8 4

(1) Srction 2 o? Artiola 

### 666-11, Vernon’8 hn81 COda, prOvid88 t&t the ptmit My 

### b8Ft.'wad I? the 

### l

**ppliCUlt &l8**  **TiOl8t8d 8Ill**  **prOTi8iOn O?**  **thi8** l ot or rnr rub or r!gu.btlon 

### of **tb beard**  

### during

### the prarlout 8180 pro4 rrmlt period. Saotloa 9 of **thi8** l rtlala da8 that the word 

### l epplicant~ rhall InOluda “t&t owea or 

### owmr8 o? the majority of th8 oorpbrata **rtook** of t oorp0retlon.n on tht h8t8 8tittrd, it 4088 not l ppaar tlabt P8roy phIllIp l8 tb owner o? t& 

### aajorlttO? the corporeta rtotk, but the iaotr 

### alght ahow upon 8 

### htsrlndt&t ha, infeot,prld for 

### allof the 8tOok or ?UrOi8h#d th8

### montt to 

### th8Other prtit8 to 

### buy thattook end that ha, In raalltf, 18 the owoar of all or o? 8 

### mejorltfof the ttook, If the herd 00mludrr that three an the feot8,we baliora 

### thet the parnltme7 be rrl'urrd,

(2) 

### Dnbtr 

### stotlon 6 of Article 

### 666-11, V4rnont8Panel 

### Coda, the Boerd 18 authorized to rafU8t 8 permit where the ?iadiq ia a.94athet,thr 

### tp- ~11.ant will con4uct the bu8ina88 **rt** II plnot or in 

### oucha mao6r that, 

### nbeaa4 on thegaaarel 

### walfsra, health,

### praoa, aomla, ati aefaty ct thepaopla 

### and
on tbapublic 8anoa o? 

### daosncy ?mrantc I rzfuurel of t perm:tvm 10 pe88ill8 UPM this i8SUt, tht **B0Fal.d** ~3~14 **be** authorized to consider ell of tha tact8 with raitrenct to the monasr In r:hlobthe bUsina88 

### la

## to be conducted, lncl::UIn~the plaot where the butlnrsr 18 to be operated, the faot it 18 the came place when the buei8e88 ~88 operated forwhich the permit he8 barn cencala4, **tk8** fact thet the oem8 of the Qorporatlon would lead 

### tothe belle?thatit la toba operated by Percy Phillipr, end tha general ohsreatar 8nd repltatlm of 811 o? the rtockholdrr8 end ortloerr o? the corporation. In other worda, the mere ?OLXM

### tlonot the oorporetlonwill not prtolodt the Boer4 from inqalrlw into all ot the feota relating to tLm place andminn~r in which tha buiintrs ir tc be oonductad, including tiUpart r4COrd end r4pUt4tiOn Of the parro-rwho form the o~rporatlon 

### and who will rM th bWufo888.

(3) s&Ion 5 o? Article 666-11 prorldar thet the &874 8htil rafUa0 t0 i88Ut 4 permit t0 anBon:r ablr 

### krt lord, pam 5

appllaant whohar a who 10 n:;t or uood moral oharrotrr or

bad reputatloa, as a praorablr law-eb+Ilna - ' oltizen la the comaunlt~where ha rerlbil. In oonneotlon with thr

### prorlaiona of rratlon 

### 9 Of t416. artlcb, we bellete that the Board zBT lnqulra into the qtmrtlon aeta whether of not any Of the oftlOer8 o? **thr** oorporetlon, or 

### tb uwn6ra of a ssjorltl or thr oorporrtr atook, arm pereonq who have a bed rrputetlon or whoera or bad moral oharactar. If the Board 00mlude8 that any or the Orflcors, or thr rtockholdars ounlw a mjorltl of the stock, ma not of PC& mnral charaotsr or have bad rpputo tiona aa law-ahldlW, citizen8 in ths comuzltr, we bsl.iavr the Board wculd be suthorlzed to rsfum the perait. Your0 rsrp truly ATWRNETC:NZRALQ? TEXAS

f.pgOVEZSEP 16, 1940

# -f-wATTORNEY

GENERAL

OFTEXAS