OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

o- 0. YInrc 

--mu 

, e4 

$ PJNA 

Boaor8bla Bert Ford, hdnlnirtrator 

Tar8 Liquor Control Board 

Austin, Tax88 

Dew Slrl 

requsrtlng our op 

Ity ai th8 LIqu 

in your lrttrr 

@ p@lUit i8 8U8d 

Iolation pi tin 

J ritrr 8 uoh auld tmdor th8 -8 

Thr a 0r:eretIon 

took .ot $3,000, rhloh wa8 rubPhillips hCkae8 Store, hWor~at.d, ha8 

8pp11d to thr Liquor Contml lb8rd r0r a pInit to 

Opcrrt@ 8 pOk8eO 8tOr8 OXI prWi8@8 OWlI br per61 

Phllllp~. The Bo8rd ir r&ii384 th8t ?rrnki8 8iUOrly 
i8 th8 rlfa of ha8 8iImrly who, for th8 part 188r, 

h8 b8Ua 8ap1Or84 in the p8OkQa 8tOr8 iOr shish 

Parat Phillip h8ld 8 PeEnit OallOa18d by thr ti8I-d. 

-8 6iiLWlt WW tWiO8 ODWiOt8d Of ViOl8tiw th8 

Tar88 Liq,uor OentrOl Aat, tha ilrrt inrtanoa bdna 

hbx'la8rt 16, 1936, an4 tbr 88OOlld iMt8M8 brlq 

hbmM?t 26, 1936. IdO lt81r Wa8 aadar iUhULOtiOS 

for liquor riobtlon in 1934, 8ad h88 b88i Op8reting 

fo ti8W Oi 

four lettar, you 88k 

qU88tiOIlS t 

tha ronigoipg hot8 out1lna4 In 

our oplnloa upon th8 r0ii0airrg 

'Tha'qU88tiOU d8a8 88 t0 What 

flrribilit~ Of 18W 8Xi8t8 to pST8lit l 

00~ or8tion to raak and obtdn a priti1w8 d8Ilid 80 inaitichql., 8rd Whhst 

fart8 8nd Oir8U8t8tiO88 would jU8tie 

thi8 lb8rd in d8n7hg 8 p8mit 8ppliad 

;~,;a a oorporatlon unbar tha l xlating 

"TO what 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, It Canmt be 8814 that 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 iclOt Of rhloh tb 

BOQ-d h98 nOtiW l re Unply 8UffiOiULt t0 Warrant th8 

Board in aonduotiq 8 had.ri6 to datrrdn8 whathar Or 

not tlm aorporatIoon IS bdry wad a8 I 8ub .rrfa%r to 

ow8r th8 intandad oprrdion oi 8 liquor bUSiin.88 by 

di8poalifid persona or tha operation ot ruoh bU8in888 

in 8D iuje8i iDaMar, ati if th8 Board 8OnOlnb88 that 

th8 OOrpm8tlOn I8 bra 80 U88d, it ha8 8uthcrit;l to 

ranarr tha pmnllt. 
793 

BOCbOr8bl8 krt Ford, pm8 3 

Tb f8Ct8 8tCtid in JOrU 18tttr 40 not On 

their iat8 8hOW th8t th8 OCZpZ’at iOB 18 di8QMlifi8d ?rh0iabg thr permit. Earln~ never rn~a~ad In th8 liquor 

buBin.88, the Oar bnttion, 

&Iiltr Of 8af TiO P 

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 ($004 filth, 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 axtr0180 of the pcllitr paatrr 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 ret trI48 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 r fulr a l 

pamIt where It tines a8 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 b8 Ft.'wad 

I? the l ppliCUlt &l8 TiOl8t8d 8Ill prOTi8iOn O? thi8 

l ot or rnr rub or r!gu.b tlon of tb beard during the 

prarlout 

8180 pro 4 

rrmlt period. Saot loa 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& 

aajorltt O? the corporeta rtotk, but the iaotr alght 

ahow upon 8 htsrlnd t&t ha, in feot,prld for all of 

the 8tOok or ?UrOi8h#d th8 montt to th8 Other prtit8 

to buy tha ttook end that ha, In raalltf, 18 the owoar 

of all or o? 8 mejorltf of the ttook, If the herd 

00mludrr that three an the feot8, we baliora thet 

the parnlt me7 be rrl'urrd, 

(2) Dnbtr stotlon 6 of Article 666-11, 

V4rnont8 Panel Coda, the Boerd 18 authorized to rafU8t 8 permit where the ?iadiq ia a.94a thet,thr tp- 

~11. ant will con4uct the bu8ina88 rt II plnot or in 

ouch a mao6r that, nbeaa4 on the gaaarel walfsra, 

health, praoa, aomla, ati aefaty ct the paopla and 

on tba public 8anoa o? daosncy ?mrantc I r zfuurel 

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:hlob the 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 for which the permit 

he8 barn cencala4, tk8 fact thet the oem8 of the Qorporatlon would lead to the belle? that it la to ba 

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 ?OLXMtlon ot the oorporetlon will not prtolodt the Boer4 

from inqalrlw into all ot the feota relating to tLm 

place and minn~r in which tha buiintrs ir tc be oonductad, including tiU part r4COrd end r4pUt4tiOn Of 

the parro-r who 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 an 
Bon:r ablr krt lord, pam 5 

appllaant 

who har 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 who era 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 

ATWRNET C:NZRAL Q? TEXAS 

f.pgOVEZSEP 16, 1940 -f-wATTORNEY GENERAL OF TEXAS