Salt Lake Tribune | 1909-04-06 | Page 1 | Liquor Dealers Lose in Dispensary Case

If 01 DEALERS LOSE 11 0MI CASE Highest Court Upholds Power of Commission to Follow Its Own Will. WASHINGTON. April 5. Tho famous fa-mous South Carolina dispensary case, 'involving the disposition of about $900,- 000 of dispensary funds held by thc state dispensary commission, was decided de-cided by the supremo court of (ho United States today in favor of tho commission, tho opinion being by Justice Jus-tice White. Thc cabe was instituted by the Wilson Wil-son Distilling company and the Floischmnnn company in the United States circuit court for tho district of South Carolina to collect debts contracted con-tracted by thc 6talo in tho purchaso of liquor in thc state from 1892 to 1907. while thc dispensary system was in vogue. Tho commission, consisting of W. .1. Murray, John McSween and Avery Patlon, was appointed in 1907, when the sate resolved to go out of thc liquor business. Wido Powers of Commission. This commission was empowered by thc legislature to collect all moneys duo tho state and pay all of its debts. At the time thc suits wero instituted about $800,000 had been collected and there was still about $100,000 due. Bills for somothing over $000,000 wero presented pre-sented by the liquor dealers, and when thc commission declined io pa- (hem na promptly as tho creditors considered it desirable, thev brought suits for (heir collection. In their petitions in tho circuit court, they alleged that tho members of tho commission had entered 1 into a conspiracy to hold the funds for their own selfish purposes, in support of which assertion they declared the money wns deposited in bank's in which members of tho commission were officers or stockholders. On I he oilier baud, the commissioners alleged a coalition coali-tion among tho creditors to collect excessive ex-cessive sums and asserted they had only taken tho necessary precautions of investigation in-vestigation before making payment of any liabilities thai might bo juBtly due. The commission resisted tho suit on the ground that; it was proceeding against tho state itself, nnd that tho i eommission was a court, and there-1 there-1 fore not subject to injunction. The circuit court overruled both of these pleas, placed the dispensary funds in the hands of a rocoiver, and granted an injunction against tho commission prohibiting it from disposing of (lie I funds in its possession. This opinion i was affirmed by the United States I circuit court of appeals for tho fourth circuit. The decision of thai, court was today reversed by the supreme court.