The sun., 1919-04-20
CONTRACT RIGHT Is !
LIQUOR MEMS HOPE
May Make "Impaired Obliga-
ton" Plea to Halt Bone
Dry Rule July ].
FEES PAID; LOSSES FACED
State Sovereignty Doctrine Is
Used to Refute Latest
Contention.

It was learned yesterday that at
suitable time before July 1 certain in
terests opposed to countrywide prohibi-
ton win ask a United States tribunal
to pass on the point of whether Con-
gress in decreeing that liquor shall dis
appear by next July has not sought to
impair the obligation of contracts
Nothing could be more specific than
the clause in the United States Con-
stitution which provides that no laws
shall be passed impalring the obligation
of contracts. 1t is the opinion OF
lawyers who have been consulted by
interests affected that any one who has
paid license fee and received GER
tificate enabling him to sell liquor is
party to an enforceable contract OF the
kind within the contemplation of the
constitutional provision and may claim
it's protection.
The liquor tax laws vary in different
States, but In New York liquor taxes
are collected and certificates issued at
the beginning of every October and the
certificates confer the right to sell liquor
Tor one year man in paying money
to this State for the privilege of SELL
ing liquor alters his position In the
legal phrase. and lawyers who have
been consulted maintain that he becomes
thus party to an enforceable contract,
the obligation OF which is guaranteed
by the Constitution.
Contention rs to Repa yment.
1t was explained yesterday also that
n man holding a liquor tax certificate
may reject the proposal for repayment of
the money representing the face value Of
his certificate from next July TO next
October upon the ground that his loss
cannot be computed In money In other
words. he is entitled to injunctive relief
as being without a remedy at law and
may invoke a court at short notice and
obtain an early ruling on the question of
law which he presents.
The opinion opposed to the one hold
ing that the State and the liquor tax
certificate holder stand In a contractual
relation is that based upon the doctrine
OF State sovereignty, or holding that
State may revoke or repeal any law on
Its statute books at any time under its
sovereign authority. and that hence the
Federal Congress. deriving It's powers
from the separate States which make up
the Union. has the same power to set
aside the existing law Of any one State
that the State itself has.
II Is pointed out. however. that the
doctrine of State sovereignty Is not OF
invariable application. The Court OF
Claims, for instance, In this State Is an
expression Of the principle that a citizen
CT State may bring action against 1t
and recover damages, just as he may
against an Individual. And especially.
when any State. upon the strength of a
statute passed by 1t, accepts money from
a citizen It cannot step aside from the OBJ
legation II has undertaken. nor can Con-
gress, deriving It's power from that State
for the purposes of the oppressive act.
decree that the State is Invested Of the
obligation II has assumed under It's own
statute making power.
Hope to Get the Case Into Court.
While Il will be difficult to persuade
any court to assume Jurisdiction OF the
constitutional question involved until
after next July, for the reason that an
Injunction cannot be asked legally
against the operation OF law which is
as yet imperative, the counsel who have
the expedient under Amusement hope to
obtain consideration for the question of
the constitutionality of the act before
next July by the use OF some device
similar to that by which one of the
cases affecting the liquor interests was
brought into court.
It Is hoped also that rehabilitation
OF the army may be complete by next
July. or at least 30 complete that Pres!-
dent Wilson may not deem II necessary
to order into effect the law which Will.
make the nation dry. Under the lam
guage OF the act he may alter the date
OF It's application. II this should occur
the constitutionality OF the law could not
be tested In this State because persons
l'o,ding tax certificates would he able to
continue selling liquor until next Octo-
her and certificates purchased after
October would OF course run only until
The State itself goes dry.