Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-13
SOVEREIGNTY AT STAKE
Attorney General Lyon Threatens to
Defy Federal Authority.
WARNING TO THE LEGISLATORS
Distribution Of the Dispensary
Funds and Payment of Creditors
the Matter at Issue.

BY WILLIAM F.. CURTIS
Special Correspondence OF The Star and the
Chicago Record Herald.
CHARLESTON. S. c., March Q, 1908.
The doctrine of state sovereignty is
again in peril. as is frequently the case
in the south. The people of the north do
no place so much importance on such is
sues: they are not so sensitive concerning
their constitutional rights. and are will
ing TO accept the decisions of the courts
as just and lawful. without making any
fuss about it. And down here the cry
of state rights is never raised except when
some local interest is interfered with adj
versely The federal government can do
all kinds of things in South Carolina and
in other sovereign states south of the
Potomac in violation of all the provisions
in the Constitution, long a the people
here derive some advantage from the
acts. and nothing is said to the con-
trary. Senator Allen of Nebraska the
populist leader. once declared in the Sem
ate that he had heard his colleagues frt~n
the south invoke the Constitution in de-
Tense Of everything except horse stealing.
and he was confident that, when neces-
sary. they would find some provision
which applies to that. But when the
federal authority, either executive or jul
dicial treads upon a corn down here. a
terrible cutlery follows, and those whose
interests are adversely affected appeal to
their fellow-citizens to join In resisting the
invasion of their sacred soil.
Last year North Carolina came into col
lision with the federal authority and was
near seeding from the Union again.
local constable with a warrant from a
local court arrested railway ticket agent
LII s-1yn OF VOTE n Ycyt,n q -
that fixed by the legislature of the state
recently, and the judge Of the United
States circuit court granted writ of ma
beaS corpus on the ground that the act
OF the local court was in restraint of trade
on the ground that the ticket in Ques-
tion was sold. to place outside the bound
aries of North Carolina and that the
rate had been approved by the interstate
commerce commission at Washington
The sky was red and the air was murky
for awhile but the state authorities final
ly backed down and no harm was done to
anybody.
Now,th sovereign state Of South Caro-
lima has been invaded by the federal
judiciary; her sacred rights have been
usurped. and some of her officials are
breathing threatenings and slaughter. The
issue is the control of the fund of the
state dispensary system. which was re-
Gently abolished. and the basis on which
commission appointed to wind up it's
affairs shall settle with its creditors. The
officials of the state prefer to make those
settlements; the creditors prefer to have
them made by a disinterested party SUBJ
ject to the approval Of an impartial
court.
Division Of Dispensary Funds.
When the dispensary was abolished the
sum of s129, 1907 remained in the state
treasury to its credit. and by the advice
OF the attorney general the treasurer
turned over this money to the "wind-up
commission" There is where the trouble
began. The dispensary fund had always
been deposited with the treasurer of the
state. and had been disbursed by that
official on warrants drawn by the liquor
commissioner and board of control. If
the balance had been allowed to remain
In the state treasury. and the regular
would have had no Jurisdiction; but the
''wind-up commission drew out the
money and deposited it to its credit in
thirty-four different banks throughout the
state. Since then 1t has added 10 it
something like 500, GOETHE proceeds of
the sale of liquors on hand. and has
drawn upon it for about $20O.O0 in set
Element of bills for liquor purchased by
the state before the dispensaries were
abolished. Hence there is a balance of
between 100000 and 100000 in thirty
four banks to the credit of the "wind-up
commission which, more or less, is due
TO various distilers, brewers and liquor
dealers throughout the country. Judge
PTitchard Of the United States court Of
this circuit has decided that this is
trust fund for the benefit of the cred
TORS of the state. and, upon their ap-
plicatiOn, has granted an injunction pro-
hibiting the banks In which the money is
deposited to pay out any of it except by
order Of the federal court.
Representations Of Creditors.
This action was taken upon repre- senta-
tons made by the attorneys of the cred
itors of the dispensary system who are
citizens of other states. that their rights
are not sufficiently protected in South
Carolina and that they are not able to
obtain lair and impartial treatment from
the courts of that state. Judge Pritch-
ards intervention is declared an invasion
of the sacred sovereignty of the state
and in violation of the Constitution, and
Attorney General Lyon and his associates
declare that they never. never. never
Will submit TO such despotism.
State rights is supposed to be good
democratic doctrine, and the democratic
party is supposed TO be intrusted with
the protection and vindication of the
sovereignty of the several states. Hence
Ii is a little embarrassing 10 find that
All the lawyers who are mixed up in this
litigation-and their name is legion-are
anu some OF them are emil
nent in the esteem and the councils of
that party. AT least one Of them-and
he happens to have been the man who
made the first application for this ter
ri5le invasion of state sOvereignty-has
been freely discussed as an available
candidate for President. I refer to JUDI
soh Harmon of Cincinnati. formerly At
toIney General of the United States in
the administration of that great defender
OF the Constitution. Grover Cleveland. 1t
may be assumed. therefore. that the
sacred sovereignty of South Carolina will
not be badly damaged, and that she will
not be deprived of her constitutional
rights on the motion of so conscientious
and eminent democrat.
Fear Of Disclosures.
This secret of all the excitement is
thai the distillers brewers and LIQUOR
dealers to whom the state of South Caro-
Ina owes money for wet groceries fur
n:shed her dispensary system, do not
care TO have their past transactions raked
over. They prefer to settle the bills
payable on any reasonable basis rather
than submit 10 an investigation OF their
d:spersary system. who have RAPIDLY
III: ''wind-up commission was appoint
e il secured the assistance of an ener-
getic ana penetrating lawyer from At
lanta. Tom b. Fel>er. WHO is familiar
with the liquor business and was willing
TO accept as his fee a percentage of the
money he recovered from the ''plunder-
bunG." as the ring of grafterS that grew