Daily press. [volume] (Newport News, Va.) 1896-current, 1908-09-16
uated States cifc0n Court Of lp.
psa|s Upho|1s Judge Pfilcha'd's
Decision N Lower Court.
suI1 not AGAINST the STATE
Eleventh Amendment Not Of Force
Because Funds Held In Trust for
State to Pay Just Debts-Court
Questions Whether State May En-.
gage In Liquor Business.
(By Associated PreSS)

(By Associated Press).
RICHMOND. VA. Sept. 15.-Cover-
ing every phase of the South Carolina
dispensary case in an exhaustive
opinion which deals with the broad
question of states rights. the United
States Circuit Court of Appeals hano-
ed down an opinion today fully sus-
tanning Circuit Judge Pritchard in the
appointment of receivers to wind up
the affairs of the liquor monopoly long
maintained by the Palmetto common
wealth to enter an appeal with the
Supreme Court of the United States.
There was no dissenting opinion.
Chief Justice Melville w. Fuller and
Judge Edmund Waddill sustaining
the law as propounded by Judge Boyd
As counsel for the state Mr.. NJ. w.
Stevenson, of Bennettsville. S. Co.
asked for a stay Of judgment in or
der to prepare an appeal. He wanted
sixty days, though the court agreed
that the documents could be prepared
and filed within forty days. that much
time being allowed.
The decision is a matter OF para
mount importance in South Carolina.
The dispensary has long been the
object Of attack. Its failure to serve
as a temperance measure, along with
its fruitful source Of graft. caused a
revulsion Of feeling. which resulted
in the passage Of law to abolish
1t as a state institution, at the same
time permitting towns and counties 10
decide by popular vote whether or
not they desire to retain it under To-
cal or county management.
The decision is a vo!umi
nous one and holds that the
proceeding is not a suit against
the state and that the COM
plainant is not forbidden to maintain
his action by the eleventh amend
ment Of the Federal constitution. IL
holds that the trainers Of that
amendment to the constitution never
intended that a sovereign state could
engage in the liquor business and
become a trader by buying and SELL
ing an article Of common tramc IN
common with the citizens Of the coun-
try.
The court questioned. therefore.
whether the state was exercising
governmental prerogative or perform
ing a function necessarily or prop
erly incident to its autonomy as
state.
Funds Hold IN Trust.
It declared that the fund In con-
troversy which the complainant
claims It should be paid from. being
in the hands Of the commission charS-
ed with the duty Of abolishing the
dispcnsary, the state has no interest
in so much thereof as is necessary
to pay the Just debts. The members
Of the commission. according to the
court. hold the funds in trust for pay
ment of all just debts Of the state
dispensary and the creditors Of the
dispensary have property in the
funds in the hands Of the commission
to the extent that the debts are
shown to be just. and a judicial de
termination OF the true amount OF
such debts can in no way AFFECT the
rights and interests Of the state
The suit. said the decision. is not
azains, the state nor Is the state an
indispensable party.
Treating the fund in the hanus
Of III, appellants As trust fund
II adds. and the duties Of the uus-
tees being Clearly defined the trustor
IL not even a necessary party TO
suit brought TO compel tho trustees 10
discharge their duties. Their position
appears 10 be- that the agents AM
representatives Of the debtor shou'n
constitute a tribunal absolute In It's
character 10 arbitrarily pass upon
what, II anything. is dre an ai'eseh
creditor. and II claim b. adjudge'
without further opportunity for re-
dress on the part Of the creditor. To
UNFOLD xnch 6 contention would no
IN deprive such . creditor OF his
propcrty withou, due process OF
Law"
Defines eleventh An<ooment
Tho court says regarding tns
eleventh amendment:
Undoubtedly tho cievcnth amend
NOR, vas intended to prevent the
Federal court IN suits prosecuted By