Mustard

The plaintiff, on behalf of himself and a minority of the members of the “Eni” or “Log Cabin Club,” of Nome, Alaska, brought this suit for the purpose of testing the right of said club to furnish intoxicating liquors to its members without having first applied for and secured a barroom license under the license law of the territory. The court below overruled a demurrer to the complaint, which was interposed on the ground that the same stated no cause of action, and, the defendants declining to plead further, judgment was rendered in accordance with the prayer of the complaint.

The question presented on the appeal is whether an unincorporated social club, organized for the entertainment of its members, which purchases intoxicating liquors with the common funds of the club, and dispenses the same to its members and guests to be drunk upon the premises, charging therefor a price per drink or per bottle, fixed by the club, sells intoxicating liquors within the meaning of the license law. The question is one upon which the decisions are at variance, but we think the weight of authority and the better reasoning lead to the conclusion that such a transaction is a sale. South Shore…

(dissenting). The sole question in this case is whether a certain incorporated club, organized “in good faith, for social and literary purposes, and not for profit, and not with any intent to circumvent or violate any of the laws of the district of Alaska,” and owning and maintaining a clubhouse in the city of Nome, of that territory, and “furnished as a reading room, dining room, billiard and pool room, also' a kitchen and buffet or bar, of the value of about fifteen thousand dollars, and known as the ‘Log Cabin,’ ” the monthly expenses of which are about $1,000, and the receipts of which, from all sources, which are derived from its members, do not materially exceed the expenses, is required to procure a license as authority to dispose of wines and liquors to its members.

The status of such clubs in respect to that question, under the statutes and ordinances of the various states, has been the subject of consideration by the Supreme Court of many of the states, the decisions of which are irreconcilable, and which conflict has been often referred to by text-writers. It is fair to presume, therefore, that Congress was well aware of the conflicting state decisions. And such…