The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-05-17

a Provision That turtniis the Ability OF
saloon Keepers to itorrov Money,

a Provision Thnt turtniis the Ability OF
saloon Keepers to Horrow Money.
Under the former Excise law of the state,
superseded on May I by the Raines Liquor Tax
bill. IL was within the power Of retail liquor
dealers to assign their licenses to person, who
advanced money upon them or, In other words.
To- uso them a. collateral security. a liquor
license was. under the law, personal property.
and when at the beginning of II year IA retail
liuuor dealer found that he did not have cash In
hand sufficient to pay for his license in a1 vancc,
he WIS accustomed to make application to tho
brewer who Supplied him with beer or the
Wholesale distiller who supplied him with
whiskcy. Whichever Of the two furnished him
the money for his license payment would re-
Ceivr. rs security. nh assignment Of his Liquor
license and would. forthwith. file with the
BOARD of Excise "A protest against the transfer
of the license. which would act rs a bar against
the saloon Keepers making away with 1t. Tho
gradual result Of this method Of doing bu ,ine7s
was, in most cases. that the brewers in the first
instance paid the amount called for and took AS
collateral security for repay tncnt OF the sum an
assignment OF the license running In each case
for one year from the date of issuance. Should,
for any reason. the retailer 90 out of business.
the license he'd by the brewer or dlstiller had a
marketable value and could he sold.
When the Ralues Liquor Tax bill went into
effect on May it was popularity, SUPPOSED TINT
II Tlilll ~ Jul ~ ''''a'h ~ WV
brewers. and their offices were ovcrrun with
retailers desiring to secure, as heretofore, the
cash necessary TO pay their Licenses. The
brewers. however, were not long IN discovering
that the new bill. in doing away with the entire
system of licenses. did away also with the use OF
assignments. Under the new law the right to
sell liquors is made subject to II tax. the pay
ment OF which Is II transaction of itself, IA tax
receipt not being negotiable. The law further
declares section 25J that. after a years tax
under the itainrs Liquor bill has been paid. the
retailer can at any time before thr first of tho
month Voluntarily "surrendcr such tax GER
,Iiratc to the officer who issued the same or his
successor in Office. and the latter is to refund in
cash the pro rata amount Of the tax paid for the
uurx Jircd term In other words, If II saloon
Keeper paid $500 for IA certificate under the
Rlincs LiQuOr law. he could at the end of one
month surrender ii. ana he would receive back
in cash from the Excise Department the
sum Of Si33.:B4 II II brewer or d~i>tliler had
lent the $500 in the first instance to the retailer
for this purpose. he would find that he had no
security for the recovery of his advance except
the good faith Of the saloon Keeper. Under this
Eaincs Tax law there is no such thing as col
lateral security in u license, and il would avail
receipt. Many of the retail saloon Keepers. hav-
ing no other security To offer for the repayment
of cash advances than u license or tax receipt,
find themselves Mt Il serious disadvantage. and
the brewers manifest considerable reluctance
to supply cash IN retailers where under the old
law it was lent as a matter of course.