The herald and news. [volume] (Newberry S.C.) 1903-1937, 1909-04-09

Fleischmann Company, both well
known liquor houses, in the United
States circuit court for the district
of South Carolina to collect debts
contracted by the State in the pur-
chase of liquor in the State from 1892
to 1907, while the dispensary system
was in operation.
When the legislature of South Car
olina decided to put the dispensary
out of business, it created the commits
sion anu empowered # to collect all
moneys due the State and to pay all
of its debts. At the time the suits
were instituted about $800,OOO had
been collected, and there still was
about 100000 due. Bill for some
thing over 100000 were presented
by liquor dealers, and when the COM
mission declined to pay them as
promptly as the creditors considered
it desirable, they brought suit for
their collection.
In their petitions in the circuit
court they alleged that the members
of the commission had entered into
conspiracy to hold the funds for
their. own selfish purposes, in sup
port Of which assertion they declared
that the money was deposited In
banks, of which members Of the COM
mission were officers or stockholders.
I'On the other hand, the commissioners
alleged coalition among the eredi-
tors to collect excessive sums, and as
serted that they had only taken the
necessary precautions Of investiga-
ton, before making payment of any
liabilities that might be justly due.
The commission resisted the suit on
the grounds that it was proceeding
against the State itself, and that the
commission is a court, and therefore
not subject to injunctions. The cir
cult court, Judge Jeter C. Pritehard,
presiding, overruled both Of these
pleas, placed the dispensary funds in
the hands Of receivers and granted an
injunction against the commission,
prohibiting it from disposing Of the
funds in it's possession. 'Ths opinion
was affirmed by the United States cir
cult court, Of app"als, Chief Justice
Fuller presiding, for the 4th circuit.
The decision Of that Court was to-
day reversed by the supreme court.
Case Argued in February.
A decision in the case has been
looked for since it was argued here
the latter part Of February, and
while the attorneys for the State were
optimistic at all times; and thorough
ly believed the final result would be
in their favor, there we're many who
did not think that the ruling Of Judge
Pritchard would be upset by the su-
preme court.
When the case was called for argu-
ment brilliant array Of legal talent
was on hand, and every possible point
for and against the interests of the
State we're presented. For the State
appeared Attorney General J. Fraser
Lyon, W. F.. Stevenson, w. D. Roun-
tree and B. L. Abney, while the Viii
son and Fleischmann interests we're
looked after by T. NJ: Mordecai, OF
Charleston; Frank. Carter, Of Ashe-
Vile; H. C. Chichester and "Messrs.
Barnard and Lester No greater leg
al battle ever took place in the SUI
preme court. 49,. . -,
It was noticed all during the argu-
ments that Justice White paid close
attention to what was said, and asked
/ a very large number Of questions rel
ative to the dispensary, its organiza-
ton, its operation and other features
connected with its management. It
was believed, therefore, that he would
write the opinion, which belief was
correct.
Knew Dispensary Situation.
In announcing the decision of the
court today, Justice White went thor
oughly over all phases Of the matter,
reviewed the dispensary situation
and the litigation that has followed
its demise, and seemed entirely con-
versant with every feature Of its
checkered career.
The effect of the decision just rem
dered means that the commission will
now take hold of the funds just as
if nothing had happened, and as if
there had been no. litigation, that is,