New-York tribune., 1908-09-16
END OF s. c. D[SPENSARY
Circuit Court Sustains appointment
of ReceiUerS to Wind 1t Up.

,,ond Va Sept 15-Covering every phase
49,, south Carolina dispensary in an ex-
.sttve % opinion, which deals with the broad ques-
r+ate rights the United States Circuit Court
'ion ,,os1s handed down opinion to-day fully
" tf,q Circuit Judge Pritchard in the appoint
s- of receivers to wind up the affairs Of the
i.'or - monopoly long maintained by the Palmetto
cn-nrlonWeaI'''
,-,-t,e ". Fuller and Judge Edmund Waddil. jr..
Nei'i-t N,t,, the law as propounded by Judge Boyd.
su,sa1 for the state NJ. W. Stevenson. of
Httsx-lle s =. asked for stay of judgment
sor 10 prepare appeal He wanted sixty
though the court agreed that the documents
mid be prepared ana Hieo "llhlh IoltN DAYS Ihat
ob time being allowed
7scieion is a matter OF paramount Importance
-, Carolina. where the dispensary has long
y 10 object Of attack Its failure TO as
..rance measure. along with charges of graft,
- - . .leion of feeling. which resulted in the
ciU'e y, a law 10 abolish it a state institution,
- same time permitting towns and counties
. s.l5e hv popular vote whether or not they de-
" -o.afn i, under local or county mana cement.
- decision written by Judge James
- of Greensboro. y Q. and concurred
=, lie associate Judge Edmund Waddill,
~ 57,ief Justice Fuller. Of the Supreme Court Of
=, 1-r,ted States. The decision IS a voluminous
'ie "a holds that The proceeding is not a suit
is+ the state and that the complainant is noT
@hi55en 10 maintain his action by the Eleventh
,,5n.ent Of the federal Constitution. II holds
-. +be trainers Of that amendment TO the Con
,.,+ion never conceived that a Southern state
a,,5 engage in the liquor business and become 4
sor bv buying and selling article of common
e. and common with he citizens Of the country.
The court questioned. therefore. whether the
.o+e WAS exercising governmental prerogatlVe
= rarforrling a function necessarily or properly
,,i5snt 10 its autonomy q state. 1t declared
,bsr the fund iE controversy which the complain
+ claims L should be paid from. being in the
ho,ds of the commission charged with the duty Of
sboishing the dispensary the state has no interest
g., so much thereof is necessary TO pay the just
6ar-e Tie members of he commission. according
:, the court hold the funds in trust fer payment
~ all lust debts of the state dispensary, and the
rsai-ors Of the Gispenssry have property in
+b f,,nds in the hands Of the commission to the ex-
-, that the debts are shown TO be just, and
iudicial determination of the true amount OF such
ab+s can in no WY affect the rights and Interests
3 he state" The suit. said the decision, is net
against the state. is thu state an Indispensable
party
Treating The funds in the hands Of the appel
lauts as a trust fund. il adds. and the duties OF
tie trustees being clearly defined. the trustor is
no; eKen q necessary party to 4 suit brought 10
ae the trustees to disc harge their duties. Their
nosltion appears 10 be that the agents end repre-
senra,ives of the debtor should constitute trlb-
unal absolute in its character to arbitrarily pass
on what If any thing, is due an alleged creditor,
a
opporunity for redress the part OF the creditor
To uphold such q contertior would be 10 deprive
such creditor Of his property without due process
Of law
The court says regarding the Eleventh Amend
ment:
I-Ydoubtedlv the Eleventh Amendment In
tended TO prevent the federal court in suits prose
cted by The citizens OF another state or citizens
or subjects Of foreign state from interfering win
state I'm preservation Of its autonomy in maintain
inc lis own system Of self government, long as
sncb system is in harmony with the Constitution
nj The United States To this end. therefore, the
unds OF the in its treasury held by its ofIl-
GERS or agents for in the administration OF the
governmental affairs II the state not TO be al
ted by the process OF the federal court nor can
such entertain Jurisdiction OF an action WnCh
has for its purpose the invasion OF rights OF the
state 10 manage and control its internal affairs or
Of an action which viii obstruct the state authority
impair the state instrumentalities In the as
charge Of legitimate functions IN the maintenance
Of the states integrity.
The Court holds that while the commissioners
were empowered to investigate the transactions,
they were not empowered to determine any issue
Of fact, enter any judgmnt, etc.
Referring TO the opinion of the Supreme Court OF
South Carolina, that a suit against the DispensarY
commission was a suit against the state, to-days
decision refuses TO adopt that construction Coun-
SCI for the Dispensary board asked for and were
granted a stay Of mandate Of forty days in which
10 prepare an appeal