The Pascagoula democrat-star. (Pascagoula, Miss.) 1878-1920, 1886-02-26
Important to Merchants:

:
cision III the case of the PhGuix In-
surance Company VS.. Pollard & Co.
Twelve attorneys made speeches,
as by agreement, 1t was made a.
test case, for about thirty others of
simalar nature. Pollard q Go.
were merchants and their stock,
which was insured, was burned,
The Insurance company claimed
that the firm did not pay a privil.
lege OH as large an amount as they
were insured for, and as sectiOh
$50, OF the code of 1880, prov ides
that all persons who shall violate
said act, Tin reference TO the busi-
ness carried on in disregard of the
law, shall be null and void,
+" and no suit shall he maintaina.
ble iu favor OF such person on any
such cOntrsct," refused to pay the
Insurance premium. ThecOurt sus-
talUed this view and reversed the
decision of the lower Court.
The decision will have tendency
to force merchants, who are insured
or expect to be, to take out privi-
ieges for the full amount of stocks
carried, otherwise, under this de-
cision, they cannot collect their
premiums. The decision, on this
account, will doubtless swell the
treasnreI's receipts on account of
privileges.
Justice Campbell delivered the
opinion, the principle points made
being given below:
"We are called upon to detcrm-
inc whether one excising the priyi;
lege of keeping store, without
paying the price aud obtaining IL
cense as prescribed by law, and ef-
fecting the insurance of the stock
OF goods.sO employed, can recover
on the policy in case of their loss,
An answer to this question re-
Quires au Interpretation of section
$50 of the Code, which declares that
any person who shall exercise any
Of the privileges enumerated, with
out first paying the price and pro.
curing a license as required by law,
shall, on conviction, be fined or i'm.
priSoned, or by both, and all con.
tracts made with any person who
shall violate this act in references
to the business carried on in disre-
gard 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 oil such person on any such
contract.
Tho purpose of the act is mani
fest. 1t is to restrain those who
would enjoy the privileges taxed to
pay the price aud obtain license by
a tvofold penalty, one beng fine or
Imprisonment, or both; the other,
disability to claim under any con-
tract made in reference to the busi.
ness carried ou in disregard OF law.
The following is the main part of
the decision, and bears directly on
the question:
Tho court asks is a policy of in
surance on a stock OF goods in q
store, carried on in violation OF
law, a contract in reference to the
business, aud answers: alt is made
to cover such goods as may cOnsti.
inle stock when loss occurs; it is
"A contract for indemnity against
loss it grows out of the business /
it pertains to il aud concerns it; it
relates to it and is made for it's
success it Is impossible to disasso-
ciate ideas of the stock of mer-
chant aud the business in which be
is engaged. Buying and selling
constitute the principal operations
of merchant, but there are many
The illegality of the
things involves and effects
the incidents. Shall II be said that
the unlicensed dealer is incapaci
tated to make. an enforceable con.
tract to buy or sell goods, but he
may make one for their preserva-
tiOn or indemnity against their
loss ! That although they are being
used for profit in an unlawful husT-
ness aud are kept tor that purpose,
a Lawful contract may be made for
against their loss By a
casualty incident to the business
would be to allow him to acquire
rights By contract from an illegal
business in face OF the statute
which denies it. The statutory in
relates to all dealers with
reference to the stock of goods
kept for sale. The price Of the ~
canse is graduated With reference
to the amount OF subh stock, and
retaining to It are what
cannot be enforced. The scope OF
the business Of a store embraces
the purchase, care, preservntian !.
and sales Of goods, aud the disa-
bility Of the violaier OF the law ex-
tends to all the operations Of the
business. He cannotolaim the ben
at ofany contract uade In It's pros
ecufion growing out Of It and har-
ing relation 70 IT,
The decision viii have the eject
to compel persons taking out =
Tor The prosecution Of any
bnsiness % Be- certain 10 procufe it
for large ameant
The speaker gives beck 90 nI1
hearers ID q rain what Be haa ro.
ceifed from them fn = m|sf
WhcneTsr large t|aII I4T1