Weekly commercial herald. (Vicksburg, Miss.) 1884-18??, 1886-02-19
IMPORTANT DECISION
DELIVERED By THE SUPREME
COURT YESTERDAY
The Failure to Take Out License for the
Full Amount of Stock vItiates In.uranCe
and Other Contracts.
Special to Commercial Herald.


JACKsoN, MISS, Feb. ia very
important decision was rendered to-
day by the supreme court. Twelve Of
the leading lawyers OF the State made
speeches in the case. 1t was made
test case, and involves about thirty
others.
Justice campbell delivered the opin-
iol, the principle points made
being given below.
I'VE are called upon to determine
whether one exercising the privilege
Of keeping store, without paying the
price and obtaining license as pre-
scribed by law, and effecting the
insurance of the stock Of goods so en-
ployed, can recover on the policy in
case of their loss.
An answer to this question requires
an Interpretation of section 589 of the
code, which declares that any person
who shall exercise any of the privileges
enumerated, without first paying the
price and procuring a license as re-
quired by law, shall, on conviction, be
lined or imprisoned, or by both, and
all contracts made with any person
who shall violate this act in reference
to the business carried on in disregard
Of this law shall be null and void, so
far only as such person may base any
claim upon them, and no suit shall be
maintainable in favor of such person
on any such contract
The purpose of the act is manifest.
1t is to restrain those who would enjoy
the privileges taxed to pay the price
and obtain license by a
twofold penalty, one being
fine or Imprisonment, or both;
the. other, disability to claim under any
contract made in reference to the busl.
ness carried on in disregard of law"
The following is the main part Of
the decision, and bears directly on the
question:
The court asks is a policy Of insur
ance on stock of goods in a store
carried on in violation of law, IA con
tract in reference to the business, anc
answers: "It is made to cover
such goods as may constitute stock
when a loss occurs; it is a contract
for indemnity against loss; it grows
out of the business; it pertains to il
and concerns ii; it relates to it and is
made for lis success: it is impossible
to disassociate ideas of the stock Of
a merchant and the business in which
he is engaged. Buying and selling
constitute the principal operations O
IA merchant, but there are many acces
sories. The illegality of the principa
things involves and effects the Incl
dents. Shall it be said that the unli
censed dealer is incapacitated to max
an enforceable contract TO buy or sci
goods, but he may make one for thei
preservation or indemnity agains
their loss? That although they ar
being used for profit in an unlawful
business and are kept for that purpose
lawful contrac, may be made TO
indemnity against their loss by casu
atty incident TO the business? Al
though no enforceable contract ma
be made for their sale. one ma
be made for their conservation or It
placement, in order that they may con
tinue to be dealt with in violation @
law? TO permit the unlicensed mel
chant to stipulate for protectio
against loss of goods by casualty il
cident to the business would be to a
low him to acquire rights by contrat
from an illegal business in face of tn
statute which denies it. The statutoT
incapacity relates to all dealers wit
reference to the stock of goods keI
for sale. The price of the license
graduated with reference to tt
, amount of such stock, and contrac
pertaining to it are what cannot be el
forced. The scope of the business (
! a store embraces the purchase, car
= preservation and sales of goods, ar
,, the disability of the violater
! the law extends to all the operations
the business. He cannot claim Il
benefit of any contract made in i
! prosecution growing out of it and ha
ing relation to it,"
The decision will have the effect
; compel persons taking out privileI
for the prosecution of any business
T be certain to procure it for lar