The watchman and southron. (Sumter, S.C.) 1881-1930, February 07, 1894, Image 2

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Knocks Holes in a Bad Law. The Anti-Dispensary Argument, of Mr. J. B. K Bryan. COLUMBIA, S C.. January 29.-The argument of Mr. J. P. K. Bryan, of Charleston against the constitutionali? ty of the dispensary law was filed in the Supreme Court to-day. It is one of tiie ablest expositions of that side bf the great case .now before the Court that has been made, and even in so ralf an abstract of it as is given below, it is difficult to do it justice : PROPOSITION FIRST. This Act is unconstitutional in the main principle thereof in that it pro? vides for the conduct of the whole busi? ness of liquor dealing in the State of South Carolina by and through the State commissioners, agents and employ? ?es. In other words, it puts the State into the liquor trade, and the same with its business risks and re? venues is assumed by the State, wholly and exclusively conducted by the State with the public funds of the pub? lic treasury, and through officers, agents and employees paid by the State out of the public treasury. The Act provides that the State com? missioners shall purchase al! liquor for lawful sale in the State, and that all amounts be paid over monthly to the Treasurer of the State, and that the commissoner is to draw a warrant against the treasury from time to time to pay the expenses ' ?curred in conducting the business of said agency, and provides that the county dispenser shall not purchase any intoxicating liquors except from the State commissioner, and $50,000 of public funds be appropriated for the purpose of purchasing liquors to be sold again to private citizens by coun? ty dispenser, a State officer. Under the provisions of the Act it is clear that no private person with private funds or in his own right conducts or can conduct their business ef liquor selling, bot that it is conducted by the State, its officers, agents and employees under fixed compensation, with the public fonds and capital of the State and witt the liquors, the property of the State, aud that the profits of such business go into the public treasury of the State and that of the county and municipality. Now we submit the State cannot go into trade ; that is into the busi? ness of buying and selling again any article to its citizens. The business of merchandising is indivi? dual aud private The State cannot itself engage in, compete in or mono? polize any trade or business, how? ever much it may regulate or re? strain or prohibit a trade or business for the general good of the whole. In the preamble of the Constitu? tion of South Carolina the object of that Constitution is "au explict and solemn compact with each other,*1 and "to form a new Constitution of civil government for ourselves.** In Section 1 of article I of the Constitution the "inalienable rights" are those of property and of the pursuit of calling and trades and business. The rights belong to the individual except when they must be extinguished for the common good. They do not belong to the ?tate ; trading is not a fuuction of "civil*' government Section 41. Article I, Constitution of South Carolina, prescribes: "The enumeration of rights in the Constitu? tion shaH not be construed to impair or deny others retained by the peo? ple ; and all powers not herein dele? gated remain with the people ** THE STATE NO RIGHT TO TRADE The right to trade, the commer? cial power, is nowhere delegated in the Constitution, and is reserved by the people. Other powers are expressly given and enumerated in the Constitution as the functions ol "civil government,'* but no hint or suggestion or implication of the State as a trader appears any? where There is HO provision for it, and no contemplation ot it in the constitutional framework of this Government This enumera? tion in the Constitution of the func? tions of "civil government" are exclusive of commen?ai and trading functions, which are not within the scope, either expressed or implied, of "civil government," which is the design of the Constitution under its preamble. This is clearly settled as a matter of law by the case of Duncan vs Bar? nett ll S. C., 337, where this Court held that the affirmative system and the specific enumeration of the Con? stitution imply a limit to the power of the Legislature, and the Legislature had no power to go further than the Constitution had prvided. So here it is manifest that the Legislature cannot go beyond the fuuctiou of "civil government," and cannot add to the affirmative system set forth in the Constitution a com? mercial trading, merchandising func? tion, which does not inhere in a government or the sovereign, and which is not conferred, but rather reserved, nader our Constitution by thc people. Article 1, Section 41. This further appears in the history of civil government. When the Emperor of Rome waa asked to trade he repiied, "I am Emperor, would you make me master of a galley ? By what means should a Roman cit gain his livelihood, if we take t trade, oin of their hands?" U which Montesquieu, (Spirit of Ls V*>1 ?, Chapter 19, Rook 22,} sa "He might have added, who shall the bounds to us if we monopo all to ourselves, who shall compe to fulfill our engagements ?" For the government to seize o trade and monopolize it is an invai of the right of a citizen, says Po cal Economy, p. 103 The character of sovereign trader is inconsistent. Adam Smit Wealth of Nations, 3 vol. 357. tinder tue Declaration of Indej dence one of the enumerated rig was the "trade" of the subject, i one of the enumerated grievances i "the cutting off oar trade with world." For this the king was nounced aa for an "usurpatic The remedy and the object of Government founded by the Am can fathers, as stated in the Deel* tion of Independence, was the ther security" of' this right. ? Declaiation of Independence j 111 ?. S.. 757, 758; Iff Wall, 1 105, 119, 120. This question as to whether a ?St has the right to monopolize and gage in a trade where it is denied the individual, has occurred only o in the history of this country, and was the State of Indiana attempt to do with the liquor trade exac what the State of South Carolina 1 by its Legislature, attempted to in this case, that is, to engage in a monopolise the business, and condi it with the public funds, through officers and agents, taking its proi far the State, county and city. A this attempt was decided by the S preme Court of Indiana as uncon* tutional, null aud void. And sm that time Indiana has, like the oil Western States, made, and u< makes, fall exercise of her poli power over the liquor trade in mc drastic measures of regulation, supt vision and restriction, but she b never since attempted, aa no otb State has ever attempted to repei the engaging in and- the conduct this trade monopolized by berse See State vs Beebe, 6 Ind. 501. Of the officers of the State sel lit liquor the Court says : "They co stitute no part of the people engag< in the business on their own accour but are appointed under the law I the county commissioners, euppli< with funds froth the county treasur and paid a compensation for the services by the county ; sell at prie* fixed for them ; make the profits ar losses of the business for the publ treasury, and not for themselves." The Court farther says . "If tl manufacture and sale of these arti ch are proper to be carried on in tl State for any purpose it is not coo petent for the Government to tal the business from the people an monopolize it The Government cai not turn druggist and become th sole dealer in medicines in th State " "And why ? Because the businet was at aud before the organization < the Government, and is properly, i all times, a private pursuit of th people, as much as the manufacture and sale of brooms, tobacco, clothe* and the dealing in tea, coffee an rice, aud the raising of potatoes And the Government was organize to piotect the people in such pursuit from the depredations ot powerfv and lawless individuals, the baron of the middle ages, whom they wer too weak to resist by force." "And for the Government uow l< seize upon these pursuits is subvei sive of the very objects for which i was created, and is inconsistent witl the right of private property in ant pursuit by the citizens." And the Court declared the wholi system of State liquor trading un constitutional, null and void. PROPOSITION SECOND. The State cannot go into trade be cause it is opposed to the whole systen of finance and taxation,11 as set fort) in Article 9 of the Constitution, whicl is the financial policy of (lie State, anc whick has adopted taxation as th affirmative system of raising the reve? nue and meeting the burdens and ex? penses of government, "These burdens are the burdens oj civil government," and taxation is the beneficent and equitable means of the citizens bearing equally these bur< dens. If the profits of trade could be seized upon by the State to pay the expense of civil government, then it, would ouly be a question of how many trades would be monopolized by the Government before taxation would cease. In other words, the adoption of the principle of the State engaging in and conducting trade, and using its profits as revenue, would nullify the system of taxation. The result would be that those classes of citizens who are allowed to conduct their trades and indus i tries would in the end pay no taxes j and bear no burdens ; but the ex? penses of the Government would be defrayed by the profits of those trades which had been monopolized by the State to the exclusion of other class of citizens conducting them. Ia addition to this exposure to loss in trade, aud the hazard of mercantile pursuit and adventure, is not a civil burden for which tax caa be levied. Taxes are only for the "estimated expenses of the State for each year." (Sec. 3, Art 9, Constitution S. C.) The objects of taxation as set ft in the Constitution by the en uni tion of the functions of the Gov< ment are : The maintenance of the Cour the expenses of the Legislature ; expenses of the executive dep ments ; the maintenance of educational system, (Article 1 The maintenance of the charita and penal institution, (Article 1 The maintenance of the mili (Article 13.) These constitute the whole sci of '.civil" government ih the Const tion It is an affirmative enume tion of power and right, which Legislature cannot go beyond- * add to without constitutional ame ment. These object of taxation those which are usual in other Sta in ibis country, and are set forth the bound of the uses of the pul funds in Wayland's Political Econon pages 423-433. Nowhere, and at no time in c stitutional history or in English s American jurisprudence, is there a use of taxes for the conduot of tra? Nowhere are taxes levied for 1 purpose of exercise of the commerc power, which is, in the politi history of Anglo-Saxon civilizatii distinctively and always a matter individual enterprise. Again, and more particularly, 1 State Legislature cannot divert pub funds by making advances to t county dispenser to bu; and 8 liquors, "such advantages to be garded as loans, to be refunded i of the profits." (See Section ] Dispensary Act ) And this is unconstitutional divereion of pub funds. Feldraann vs City Counc 23 S. C., 62-68, Mauldin vs Ci Council, 33 S. C., 24. In Feldmann vs City Council o Court held it was au uncoustitutior. diversion of public funds "to loai public money to the citizen to build shelter for. his family in the bor districts of Charleston, even if t "loan" was secured by mortgage real estate improved. Here a fortio is plainly an unconstitutional div< sion of public funds of the Stat raised by taxes, to advance them, ai what they purchase as "loans" dispensers, without security, or ev< for the State herself, through h agents, to apply the public funds purchase intoxicating liquor to s< again to the individual private cit zen-a purpose which is surely n a public purpose. Mauldin ' Greenville, 32 S. C , 24. This directly coucerns the ta payer, a copartner as to the assets i the political coparterehip, and liabl with bis property, for the debts i the State. In addition to this, by Article U constitution of South Carolina, tl General Assembly is forbidden 1 create any further debt or obligatic by loan of the credit of the State, < otherwise, except for the "ordinal and current business of the State " And we submit, under the const . tn tiona! principles we have above si foi th, that it is not, and never wa the "ordinary and current business < the State" to engage in trade whic is not a function of "civil govert ment." PROPOSITION THIRD. The police power of the State, in i largest extent does not autJtorize a Stai itself to engage in a business In this argument our position mm not be misunderstood as to the exter of the police power We admit that the State, can, i the exercise of the police, powei put any restriction upon the ind vidual in the sale or use of intoxica ting liquors We admit also, tba the State eau,in the fnllest exercise o the police power, absolutely prohib? the manufacture, sale or existence o intoxicating liquors within lier terri tory. This police power of the Stat is a system of restrictions on indi vidual rights and on property owne< by individuals. It i3 founded on tin maxim "Sic t?tere ino ut non laedai alieno," that the individual shall no use bis own so as to injure another. For the health, morals and welfari of the power is supreme It is salui populi. But we contend that whet the State has restricted the individua ! in selling, or when the State shal have wholly prohibited the sale oi presence of intoxicating liquors ii the State, that the police power ii exhausted. That the police power if and can be only exerted in restriction regulation or prohibition. In othei wo rd8, in this Act, that in the exer eise of the police power : The State can require all liquor to be inspected before sale : to be sold between cer. tain hours : can prohibit the drinking of any liquor upon the premises where it is sold ; prohibit the sale to any minor or to any habitual drunkard, and to these restrictions can add other restrictions limiting and regulat? ing the traffic by the individual, and ? could even go to the extent of total ; prohibition of sale by the individual and the destruction of the property as a noxious poison on this soil. All of these objects are within thc proper exercies ot the police power, and can be accomplished through the ! operation of that power without the j State itself engaging ?ti or assuming the I conduct of the trade. But this assurap j tion of trading function by the I State, through it officers and agents, either before or after having excluded the individual from the trade, either in competition or monopoly is not within the police power of the State, and it is against the Constitu tion of the State. In all the cases cited by council to legislative action by the Sta held constitutional as to liquor traf the Court has upheld Acts as com tutional because they were At either : (1) Regulating sales and bus i ni of intoxicating liquor, or, (2) Prohibiting sales and busin? of intoxicating liquor. But nowhere has the Court uph< an Act that allowed the State engage in or monopolize liquor trat whether it prohibited it or not. The only case-the Indiana case in the books is decided against t right of the State to conduct liqc trade, and this is founded on tlx principles of civil government, understood in American constitutioi law as a heritage of the Ango-Sax people. And the general principle of tl case is again announced and affirm with strong emphasis against t State going into any business in t following- case, decided within tl month Rippe vs Becker, Suprei Court of Minnesota, January 5 182 in which the Court held, ail Judg concurring: "Tha police power a State to regulate a business is be exercised by the adoption of rul and regulations as to the manner which it shall be conducted by othei and not by itself engaging in it The Court says : "The evide sole purpose of the Act is to provis for the State erecting an elevator, ai itself going into the 'grain elevate business, a business conducted- 1 the State in its own elevator, and far as relates to the right of the Stat under the police power, to regula business, the position of defendant counsel really amounts to this : Th whenever those who are engaged any business which is effected with pnblic interest, and hence the subje of governmental regulation, do n furnish the public proper and reaso able service, the State may, as means of regulating the bu si nee itself engage in it, and furnish tl public better service at reaso ti ab rates, or, by means of such Sta competition, compel others to do s The very statements of the propos tion is sufficient to show to wh startling results it neccessarily lead It needs no argument to prove th; if, in the exercise of the police pow? to regulate this business, the Sta) itself has a right to erect and opera! one elevator at Duluth, if has ti power to erect and operate twenty if necessary, at the same point, an also to erect and operate elevatoi at every point in the State whei there is grain to be handled an stored. Railways are also, under th same police power, the subjects < State regulation ; and if it shoul be deemed that they were m furnishing the public with propc service, or charging un reaso nabl rates, it could with equal propriet he claimed that it would be a prope means of exercising the police po wc of regulating the business for the Stat itself to construct and opctate con peting railways. The hack businesi the pawnbroker's business, tb manufacture and sale of intoxica ing liquors, and numerous other kind of business that might be namer are also the subject of State reguh tion ; and, if counsel's contention i correct, we do not see why, as means of 'regulating' these kinds c business, the State itself might nc engage in running backs, pawi brokers' shops, building and opera ting distilleries and breweries, or eve ! running saloons But further illui j tra tion cannot be necessary. Th j police power of the State to r?gul?t a business does not include th j power to engage in carrying it on j Police regulation is to be effected b; restraints upon a business, and th adoption of rules and regulations a to the manner in which it shall b conducted. While the jurists o continental Europe sometime j include under the term 'polie power' all governmental institution which are established with publi* funds for the promotion of the publi* I good, yet, as understood in America! j constitutional law, the term mean ? simply the power of the State t? : impose those restraints upon privat? j rights which are necessary forth? general welfare of all, and is but th? power to enforce the maxim : Sh uturet tuo ut alienum non laedas The provisions of this Act have nr j reference to thc regulation, in anj ! such sense, of the 'grain elevatoi j business/ and the right of the Stat( j to embark in the construction anc j operation of these works cannot b( predicated on the police power." "The time was when the policy was to confine the function of govern ment to the limits strictly necessary I to secure the enjoyment of life j liberty and property. The old Jeffer j 8onian maxim was that the countrj I is governed the best that is governed ! the least." If the people wist j socialism and paternalism "the) j must amend the Constitution of thc j State. The present Constitution wat I not framed on any such lines." "It is always a delicate as well as ar ! ungracious task to declare invalid ar. j Act of a co-ordinate branch of the Gov erntment. But the Legislature is not j the people any more than are thc ; executive and judiciary, and is .j equally with them subject to thc I limitations imposed by the Constitu j tion. Thc Act now under considera : tion seems to us so clearly in viola I tion of the Constitution that it is oui i boundeu duty to so hold." In this last case from Minne the Supreme Court of that St reversing the lower Court, comes the rescue of constitutional "< government,'* as we have ha< handed down to us as a preci legacy, and together with the I ana Court has clearly defined limit of the police power for Commonwealths of this country. FOURTH PROPOSITION. The State cannot in any tr establish a monopoly either for individual or for itself by engaging ii, though it may restrict, r?gulait prohibit it altogether under the pc power. The Slaughter House cases in S. Supreme Court reported in Wall, 36, are claimed to support doctrine of power in a State create trade monopolies, but State Acts were there upheld by Court not on the ground as susta iug a trade monopoly, but simply the ground that the State had right to define a "locality wh slaughtering should be done." 161.) j The Court, by Justice Miller, ps I 51, 16 Wall, takes care distinctly j deny that it is a monopoly, and ! disaffirm the power of the State create a trade monopoly. The Co says, "it does not, as has bt asserted, prevent the butcher fr doing his own slaughtering. 1 butcher then is still permitted slaughter, to' prepare and to sell own meats." And the Court den j that the Act operated to "depri ? the butchers of the right to labor j their occupation." (Page 61.) A declared that the "Act did i destroy the business of the bute! ov\ seriously interfere with tl pursuit," but was simply a "restrai and regulation" within the poli power. 16 Wall, 61-62. This is vastly different from t usurpation and monopoly of t trade which the State here h attempted under the guise of t police power. i The principle of the " S laugh t House" cases is the strongest arg ment against the monopoly by t State, for itself or individuals, trade under the guise of the polii power, or the granting of exclusr privilege of trade under the pr?tent of the exercise of that power, ai confirm the doctrine that if there 1 trade at all it must be by tl individual under restrictions ai regulations common to all in view the common good and welfare. The original question in tl 'Slaughter House" cases cou never have arisen under the Constit lion, because all forms of inonopolii are distinctly forbidden in Sectk 12, Article 1, of our Constitutio which provides that "no person shs be subjected in law to any oth< restriction or disqualification in regal to any personal rights than such i are laid upon others under lil circumstances." And Section 41, Article reserves the rights and powers II? delegated. These articles of our Constitute as interpreted by our own Supren Court, allow no exclusive privilege I any person from the State, and tl Acts of the Legislature authorizin the cities to go into private businei and give exclusive privileges, or tl attempts of the cities with or withot the authority of the Legislature to g into private business, have bee adjudged unconstitutional and vok See Feldmann vs. City Council, 2 S. C., 57 ; Mauldin vs. City Counci 33 S C , p 1. And in Feldmann vs. City Counci 23 S. C., p. 63, the Supreme Com referred to Article 1, Section 41, c the Constitution as an express restric tion upon the power of the Legish ture to exercise its power for privat business and to the duty of th Court to declare it void. So that the Constitution of thit State is clear and fall to the poin against the authorization of an; monopoly or private business create< by or engaged in by the State. Under it monopoly in trade by th< State in behalf of itself or in favor o an individual cannot lawfully exist. FIFTH PROPOSITION. The liquor trade, as to the exercise of police power, is like all other trade, and employments Finally, the liquor trade is as tc this question no different from an\ other trade as to which the State may exercise its police power. Tht attempt to make it exceptional is not founded in law or fact. "The restraints on the sale ol liquors are but the ordinary police regulations such as the State may make in respect to all classes oi trade and employments," is the language of Judge Cooley. (Cooley's Constitutional Limitations, pages 725 726.) The United States Supreme Court has said : "Ii the State can prohibit intoxicating liquors it may also exclude tobacco or any other article, the use or abuse of which it 1 may deem deleterious." (Bowman j vs. R. R., 125 U. S.,404 ) i j The fact is that the States, in the ! j exercise of the police power, actually : at this moment do regulate in this and other States the trades as follows, among others : Drugs, tobacco, meats, coffee, all articles of . food, fertilizers, flour, butter, public markets, fruits, vegetables, by de daring the places where and th hours within which they shall b sold ; . in providing. for the ii spec tion and destruction of ui sound articles; in providing fe a chemical analysis and branding c fertilizers; in* providing for th exclusion of diseased cattle, and i many other ways restraining an "regulating" the trade as to th quality of articles to be bought am sold, and as to the times when am the places where the articles may b bought and sold by individuals This is admittedly "regulation." Ii however, the State can lawfully, ii the exercise or under the guise o pretext of the police power, add t( the system of existing regulation am restraints trade, another system ot engaging in or of exclusive monopoly of buying and selling by the Stat itself of all these articles, then w< may have, constitutionally, exclu 8ively conducted by the State (brough its officers and agents, witt the public funds aud absorbing thc revenue, the following trades : Thc State fertilizer dispensary, the State tobacco dispensary, the State butte) dispensary, the State fresh meal dispensary, the State salt meal dispensary, the State drug dispen? sary, the State fruit dispensary, thc State nour dispensary, and so on through every trade in which in thc exercise of the police power the State could make regulations, and thus practically the whole business, trade and commerce of the State could be constitutionally turned into a system of official conduct of busi? ness, with an army of officers and State agents ; and thus instead of the individual citizen conducting trade with private capital and private enterprise, under the protection and restraints of the Government, the Government would be conducting trade' with public funds, through official employees ! To state this result is to demonstrate the falsity of the principle, for this result js simply socialism and paternalism and com? munism run mad, and destroys the very purposes, and transgresses all the bounds of "civil government" founded by our Constitution. The trading by the State in liquor being against the Constitution it is void/ and cannot be upheld by resort to tlie police power for the police power cannot be exercised in acts "repugnant to the Constitution." Cooley Const Limitations, p. 714, 5th line from bottom. So also the Supreme Court of the United States say : "Under guise of exerting police power a State cannot pass an unconstitutional law." 138 ?. S. 82. In the light of these principles the exercise of the police power cannot be by the State itself engaging in the trade. Whether it be the liquor trade or any other trade the constitu? tional principle equally applies, aud j is fundamental aud vital. To lose sight of this principle because the liquor trade alone is now under dis? cussion is to surrender one of the mightiest constitutional bulwarks of our Government, and to return to the absolute governments of the East or Continental Europe, where any and all trades, arts and industries might at any moment be engaged in,usurped or monopolized by the monarch. Let us preserve the State from en? gaging io any and all trade. Ii the trade be hurtful unless controlled, let the State regulate it by proper re* strictions. If trade be noxious per se, and inherently endangering the health and morals of society, then let the State prohibit it and abolish it entirely, thus applying aud exhaust? ing the whole police power of the State in protection of society. But when, under the public policy of the State, the trade is not noxious, (and in this instance intoxicating liquor is not only permitted, but poured out in sale by the State by thousands of barrels each year), let not the State appeal to the police power for the State itself to engage in this trade, for the police power does not, as we have seen, io ! elude the power of the State itself to engage in any trade. Fatal have been the consequences to any trade, and corrupting also to the State and its citizens, when the absolute monarchs of the Continent have attempted, by an army of paid retainers aud officials to conduct a trade-so all the political economists, from Adam Smith down, tell us. In the light of this warning of history, dangerous indeed is the experiment, corrupt and corrupting to the State and its citizens must the end be of the attempt to conduct exclusively, by public funds, aud a host of paid officials, the trade of the magnitude of the liquor traffic, offering in itself so manifold and strong and subtle temptation with public money and multiplied public trusts. The highest public policy of civil eociety is against such a system. The strain of civil government, pure and simple, is surely severe euough in our day. To add to the high and solemn functions of civic rule the business or the temptation of any official trading and trafficking is a grave threat to the whole fabric of "civil government." The political i and social safety of these American ! Commonwealths rests on the strong ! foundations of the past. Those time honored principles which have been \ bought with the price of blood and ! long struggles and sacrifices and j tested with severe experience are the j precious political heritage of the j Anglo-Saxon race.