STONE VS MISSISSISSIPPI

101 US 814
1880
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 25 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the state declared that the subsequent enforcement legislation had repealed the grant.
Question
Whether or not Mississippi violated the Contract Clause by repealing the
Society's grant.
Conclusion
No. 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.