The herald and news. [volume] (Newberry S.C.) 1903-1937, 1908-03-03
The FEDERAL COURT
TAKES JURISDICTION
WILL INQUIRE INTO MERITS OF
DISPENSARY CLAIMS.
Holds When State Went into Whis-
key Business Right of Immun-
ity from Suits Vanished.


diction and inquire into the merits Of
the claims Of many liquor houses
against the South Carolina dispcn-
sary board, and continuing until Sat
urday argument on the question Of
appointing Il receiver for the $780,
600 fund left by The late dispensary,
and now in the hands Of the wind
ing-up commission or the State.
Judge Pritchard rendered al opinion
which days down a broad principle Of
Importance and widespread scope.
The opinion of the judge, which,
however, speaks for itself, appears to
hold that when ii State engages in the
whiskey business or other business
not necessary to preserve its auto
nomy or sovercignity it valves its
rights under the eleventh amendment
to thc constitution Of the United
States not to be sued without its con-
sent. And further. he decides that
it would be m just to permit the
State under any circumstances to
avoid the payments Of dcbts contract
ed for goods on which ii has made a
profit.
A decision SO broad III enunciation
of principle seemed hardly to have
been expected by the counsel in the
case at bar and it will carry to the
supreme court an issue which should
serve to decide once for all the
rights of the States under the amenl-
ment. 4
And not less interesting than the
opinion is the condition which the
taking of jurisdiction creates-that
is. ample possibil;' Cor a conflict be-
tween the State o. South Carolina
and the Federal Court. similar to
that in North Carolina at the time
of the railway rate ease decision. Ev-
en- now there is pending, to be heard
March + by the Supreme Court of
South Carolina. a petition presented
to it by Attorney General Lyon,
which asks that the commission be
compelled to pay out of the dispen-
sary fund certain amounts he needs
to prosecute those whiskey men whom
he declares have swindled South Car
olina out Of untold thousands through
alleged collusion with the old dispen-
sary board, which bought their IL
quors. an act which the commission
refuses to perform because Of Judge
Pritchard's former order that il pay
ont 10 money until further orders.
The attorney general expects that
no trouble wild come of this because
the Supreme Court will consider the
procccdin" before judge Pritchard.
but it is feared that trouble may
come in other ways; for example. if
Judge Pritchard should appoint re-
caivcr and the commission should de-
cline to turn over the fund to the re-
ceivcr.
It was under these circumstances
that the court disposed temporarily
of the Flcischmann bill filed by
George B. Lester and Mcrricll & Bay
clard, and took up The general credi-
tors bill filed by T. Moultric Mordc-
cal, of Charleston and Frank Carter,
Of Ashevillc. in which a receiver also
lis asked.
SS There was Il mild assertion that
@thc PamI Jones Company, also a cred
@itor, had turned estates cvidcnce:'
: had told the commission all il knew
about raSralitv committed by others
in The sale Of liquor AMI thereby so
placatcd The commission that that
body consented that the Paul Jones
Company should be paid what was
agreed as due it. Then arose an OBJ
lection by attorneys Of ether credi
tors to This payment, the upshot OF
which was that the court said that it
would order the payment if the com
mission came in and stated that The
account was agreed ON, an action the
other attorneys think the comms-
sion likely to DO. as ii is disputipg
the court s jurisdiction.
And then there is incidentally The
claim by South CaroTina people that
III" taking Of control by the Federal