Kohn v. Melcher

43 F. 641, 10 L.R.A. 439, 1890 U.S. App. LEXIS 1732
CourtU.S. Circuit Court for the Southern District of Iowa
DecidedOctober 7, 1890
StatusPublished
Cited by4 cases

This text of 43 F. 641 (Kohn v. Melcher) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the Southern District of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kohn v. Melcher, 43 F. 641, 10 L.R.A. 439, 1890 U.S. App. LEXIS 1732 (circtsdia 1890).

Opinion

Shiras, J.

In this cause the parties waived a jury, and submitted the case to the court. The evidence shows the following facts:

(1) The firm of Kohn & Adler, plaintiffs herein, are now, and for years past have been, engaged in the business of selling spirituous liquors at wholesale; the headquarters thereof being established at Hock Island, 111., of which state tiie plaintiffs are now, and have been for years, citizens.
(2) The defendant, during the period of time involved in this case, has been a resident of Atlantic, Cass county, Iowa, engaged in the drug business, holding a permit from the county authorities to sell spirituous liquors for medicinal, culinary, and sacramental purposes.
(8) That ihe defendant, under cover of his permit to sell for legal purposes, has been engaged in the business of selling intoxicating liquors as abeverage, in quantities to suit purchasers, or, in other words, has been practically running a saloon in connection with Ills business as a druggist; the liquors sold being drunk on defendant’s premises, or carried away, at the option of the purchasers.
(4) Since June 25, 1884, plaintiffs have sold and delivered to defendants spirituous liquors to the amount of $3,840.80, upon which defendant has paid the sum of $2,959.70, leaving a balance due on December 1,1885, of $887.10, which is partly evidenced by three promissory notes, — two bearing date September 15, 1885, for $124.25 each, and the third bearing date September 20, 1885, for $124.20, — executed by defendant, and payable to order of plaintiffs.
(5) The liquors thus sold were contracted for and delivered as follows: Every few weeks Edward Kohn, one of the plaintiffs, would visit defendant’s place of business at Atlantic, Iowa, and defendant would then and there contract with him for the purchase of such liquors as he then needed. The liquors so purchased would from time to time be forwarded from Dock Island, 111., to Atlantic, Iowa, by rail, being delivered to the railway company at Dock Island, 111.
(6) The payments made upon the account wero usually made at Atlantic, Iowa, to Edward Kohn in person, although in some instances the sums paid were remitted by letter to plaintiff at Dock Island, 111.
(7) Edward Kohn, and, through him, his said firm, plaintiffs herein, knew that defendant was engaged in selling the liquors furnished him in the manner already stated.
(8) The defendant, in making the monthly reports to the county auditor of [642]*642the sales, and profit thereon derived from the sales, of spirituous liquors, under the requirements of the state statute, falsely stated the amounts thereof, and the profit derived therefrom, and intentionally concealed the fact that he was engaged in selling spirituous liquors as a beverage, and not solely for the four legal purposes contemplated by the provisions of the statute of Iowa.
(9) In order to aid the defendant in concealing the fact that he was, in violation .of the laws o'f Iowa, running an establishment wherein intoxicating liquors could be purchased and used as a beverage, it was agreed between the plaintiffs, represented by Edward Kohn, and the defendant, at Atlantic, Iowa, that two invoices of the liquors sold to defendant by plaintiffs should be made and furnished by the latter, one of which should show the actual price agreed to be paid for the liquors, and the other a higher fictitious price; the latter invoice to be shown in case a question should arise between the county authorities and the defendant as to the amount of profit realized by defendant in selling under his permit as a druggist. It was likewise agreed that a portion of the liquors sold should be shipped to Atlantic, to a fictitious consignee, so as to aid in concealing the amount of liquors actually received by defendant. It was likewise agreed that a portion of the liquors should be inclosed in boxes and barrels, in such a manner as to conceal the nature of the contents thereof; the marks placed thereon indicating that the contents were hardware, crockery, or goods other than liquors. In, pursuance of the agreements thus made, the plaintiffs did, from time to time, furnish to defendant the false invoices agreed upon, and did ship a portion of the goods sold to defendant under a fictitious name, as consigneee, and did pack portions of the liquors and so mark them as to conceal the real nature of their contents.
(10) The liquors sold to defendant by plaintiffs, when received at defendant’s place of business at Atlantic, Iowa; were not sold by him in the original packages, but the packages were opened, and the contents retailed in small quantities, which facts were known to the plaintiffs.
(11) Plaintiffs brought this suit to the March term, 1886, of this court, .to recover the amount due upon the three promissory notes hereinbefore described, and a balance of an open account; the total sum claimed to be due being $887.10, with interest.
(12) The defendant, by answer, pleads the illegality of the sales under the prohibitory liquor law of the state of Iowa, and by a counter-claim seeks to recover judgment in the sum of $6,396.09 against plaintiffs for moneys alleged to have been paid to plaintiffs for liquors sold by plaintiffs in violation of the statute of Iowa, and under the circumstances recited in the foregoing findings of fact; the illegal agreements set forth in the ninth finding being expressly declared upon in said counter-claim.

In support of the right of recovery on part of plaintiffs, it is argued that the case of Leisy v. Hardin, 136 U. S. 100, 10 Sup. Ct. Rep. 681, establishes the right of plaintiffs to make the sales of liquors to the defendant; that in making such sales they were acting under the protection of the commercial clause of the constitution of the United States; and that the prohibitory liquor law of Iowa cannot be invoked to defeat their right of recovery. If the facts of the case presented no other question than that of a citizen of Illinois importing liquors into Iowa, and selling the same in the original packages, then the doctrine announced in Leisy v. Hardin would apply.

There is, however, another question which fairly arises on the undisputed facts of the case. For years past, it has been the established policy of the state of Iowa to forbid the sale of intoxicating liquors for [643]*643use as a beverage. Provision has been made for the sale of such liquors for certain named uses, and to cover that end the statute provides for licensing parties to make sales of liquors for lawful purposes. It has also been the settled policy of the state for years past to regulate the business of pharmacists, so far as the same includes the compounding and selling of medicines, poisons, and intoxicating liquors. In 1882 the legislature passed an act providing for the examination of parties desiring to carry on such business, for the issuing of certificates to those found competent, defining the duties of such pharmacists, and expressly forbidding such registered pharmacists from selling intoxicating liquors as a beverage. To authorize pharmacists to sell liquors for mechanical and other legal purposes, they are required to procure a license for that- purpose, under the provisions of the statute regulating the sale of liquors.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Paul Jones & Co. v. Wilkins
135 Tenn. 146 (Tennessee Supreme Court, 1916)
Gordon v. Gordon's Administrator
182 S.W. 220 (Court of Appeals of Kentucky, 1916)
Pabst Brewing Co. v. Smith
1913 OK 565 (Supreme Court of Oklahoma, 1913)
Frankel v. Hillier
113 N.W. 1067 (North Dakota Supreme Court, 1907)

Cite This Page — Counsel Stack

Bluebook (online)
43 F. 641, 10 L.R.A. 439, 1890 U.S. App. LEXIS 1732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kohn-v-melcher-circtsdia-1890.