The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1908-03-05
PRITCHARD TAKES JURISDICTION.
Decides That the State Can Be Sued In
the Dispensary Cases.

AsHEvLLE, Reb. 29.-Deciding that
his court would assume jurisdiction /and
inquire into the merits of the claims of
many liquor houses against the South
Carolina dispensary board, and continu-
ing until Saturday argument on the
question Of appointing areceiver for the
$500, 900 fund left by the late dispensary,
and now in the hands Of the winding-up
commission of the state, Judge Pritchard
rendered an opinion today which lays
down a broad principle of Importance and
widespread scope.
The opinion of the judge appears to
hold that when state engages in the
whiskey business or other business not
necessary to preserve it's autonomy or
sovereignty it valves its rights under the
eleventh amendment to the constitution
of the United States not to be sued with
out it's consent.
Not less interesting than the opinion
is the condition which the taking OF
jurisdiction creates is, ample pos
sibility for conflict between the state
of South Carolina and the federal court.
Even now there is pending, to be heard
March a by the supreme court OF South
Carolina, petition presented to it by
Attorney General Lyon, which asks that
the commission be compelled to pay out
of the dispensary fund certain amounts
he needs to prosecute those whiskey men
whom he declares have swindled South
Carolina out of untold thousands through
alleged .colusiA with the old dispensary
board, which bought their liquors; an act
which the commission refuses to perform
because of Judge Pritchard's former
order that it pay out no money until
further orders. -
The attorney general expects that no
trouble will come of this because the
supreme court will consider the proceed
ing before Judge Pritchard, but it is
feared that trouble may come in other
ways; for example, if Judge Pritchard,
should appoint a receiver and the COM
mission should decline to turn over the
fund to the receiver.
It was under these circumstances that
the court today disposed temporarily of
the Fleischmannl bill filed by George B.
Lester and Merrick & Baynard, and took
up the general creditors bill filed by T.
Moultrie Mordecai, of Charleston, and
Frank Carter, of Asheville, in which
receiver is also asked.
There was mild assertion that the
Paul Jones company, also a creditor, had
turned Estates evidence" had told the
commission all it knew about rascality
committed by others in the sale of liquor
and thereby so placated the commission
that that body consented that the Paul
Jones company should be paid what was
agreed as due it. Then arose an objec-
ton by attorneys of other creditors to
this payment, the upshot Of which was
that the court said that it would order
the payment if the commission came in
and stated that the account was agreed
on, an action the other attorneys think
the commission likely to do, as it is dis
putting the courts jurisdiction.
And then there is incidentally the claim
by South Carolina people that the tax,
render the state helpless to prosecute
the alleged swindlers Of the dispensary
whom Attorney General Lyon has been
so vigorously p8rsuing because he must
depend on getting the ammunitions of
war from the fund controlled by the
court.
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