STONE .

MISSISSIPPI
FACTS:
In 1867, the provisional state legislature of Mississippi chartered the Mississippi Agricultural,
Educational and Manufacturing Aid Society. The Society was chartered to run a lottery for the
next twenty five years; however, in 1868, a new constitution ratified by the people outlawed
lotteries in the state. John Stone and others associated with the Society were arrested in 1874 for
running a lottery. The Society claimed they were protected by the provisions of their charter
while the state declared that the subsequent enforcement legislation had repealed the grant.

ISSUE:
Did Mississippi violate the Contract Clause by repealing the Societys grant?

RULING:
A unanimous court found the Mississippi classification of lotteries as outlawed acts was valid.
The State legislature does not have the power to bind the decisions of the people and future
legislatures. The Court stated that no legislation had the authority to bargain away the public
health and morals. The court viewed the lottery as a vice that threatened the public health and
morals. The contracts protected in the Constitution are property rights, not governmental rights.
Therefore, one can only obtain temporary suspension of the governmental rights (in this case, the
right to outlaw actions) in a charter which can be revoked by the will of the people.