The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1909-04-08
PRIICHARD IS REVERSED.
L. S. SUPREME COURT DECIDES
FAMOUS DISPENSARY CASE

State Wins at Every Point-Com'
mission Can Now Continue In
vestigation.
Washington, April 5.-The wind
ing-up commission of the State dis
pensary will be able now to proceed
with it's investigation without inter-
ference by Judge Pritchard or any
other federal court. The receiver
ship is destroyed and the injunction
against the commission dissolved by
order of the United States supreme
court, which in a decision handed
down to-day takes the position that
the commission created by the legis-
lature is a direct representative of
the State of South Carolina. To sue
it or to proceed against it in any
court is a proceeding against the
State of South Carolina, which, says
the supreme court, is violation OF
the 11th amendment to the federal
constitution. Justice White read the
decision, which winds up with this
paragraph:
Deciding as we do that the suits
in question were suits against the
State of South Carolina, and within
the inhibition of the 18th amend
ment, the decree of the circuit court
of appeals is reversed, the decree of
the circuit court is also reversed,
and the cause remanded to that
court with instructions to dismiss
the bills of complaint
Chief Justice Fuller, who sat with
the circuit court of appeals and
whose decision in that court is today
reversed, did not participate in to-
days decision. T. M. Mordecai, chief
counsel for the whiskey house COM
plainants, was in the court room
when these words fell from the lips
of Justice White, and completely
fabbergasted, he went out and took
the train for Charleston. It is a vic
tory for Attorney General Lyon and
his associate counsel, none of whom,
however, were here.
The decision is 13 printed pages
long, going into a complete history
from a legal standpoint of the State
dispensary from it's first creation and
of course, reciting the history of the
case in question, which is a writ OF
certiorari to the United States cir
cult court of appeals of the fourth
circuit.
Story of the Case.
The story of the celebrated case is
\, br;of &c fo1lcUc.
The commission appointed by the
governor under authority of the leg
islature to wind up the State dis
pensary affairs, take charge of all
funds, and pay all just claims, not
being satisfied with some of the
claims presented by certain liquor
houses, undertook to make thor
ough investigation of the circum-
stances and conditions of the sales OF
liquor to the dispensary officials.
Certain liquor concerns, especially
the Wilson Distilling Company and
the FleischInan Company, protested
against this proceeding and refused
to produce their books. These con-
Germs at the same time complained to
Judge Pritchard of the fourth United
States district, and petitioned for an
Injunction against the commission s
further procedure and also for re-
ceiver to take charge of the affairs
of the dispensary. Both of these pc
titions Judge Pritchard granted, is
sued the injunction and appointed
the receivers. The banks in which
the commission had deposited the
dispensary funds, as we'll as the COM
mission, were restrained from pay
ing out any of the dispensary money
except upon the order of the recelv-
ers.
The dispensary commission in obe-
dience to this order refused to pay
over to Attorney General Lyon the
$4,000 ordered by the legislature
to be paid to the attorney general
for the purpose of prosecuting cases
against those charged with fraud in
connection with the dispensary. Mr..
Lyon went to the supreme court OF
the State, which, deciding that the
winding up commission, as a repre-
sentative of the State, was not bound
to obey Judge Pritchard's injunction,
ordered the $4,000 paid. The attor-
ney general then asked the United
States circuit court of appeals, sit:
ting at Richmond, to dissolve the in
junction and the receivership OF
Judge Pritchard. The circuit court
of appeals denied this petition. The
case was brought to the United
States supreme court on writ OF
certiorari with the result as stated
above.
State Retained Rights.
The position of Judge Pritchard
was that the State OK South Carolina
when it appointed the winding up
commission completely divested
itself of all it's rights of immunity
from suits in law by citizens of other
States, which is forbidden by the
18th amendment. He said that this
commission was simply trustee for
certain funds and as slch was on