The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-07-02
THE WATTS ACT
WILL DO THE WORK
Federal Government Cannot
Interfere.
AN OFFICIAL OPINION
Despite the Issuing Of Federal Licenses to Dis
ters, Gaugers, Stortksepers, Attorney
General Gmsr Holds the State
Law is Solid.

At midnight the Watts Act went into
effect in North Carolina
Over 500 distilleres went out of opera
ton in the State as the hour of twelve
was tolled.
The distilleries can not be operated in
the country districts in North Carolina,
and inside of incorporated towns it re
quires the assent of the voters there for
these to be conducted.
The Federal authorities, it is said, pro-
pose to issue United States Government
license to distillers and renew their bonds
to conduct their stills, and to maintain
a tribe of gaugers and store-keepers to
operate with these.
1t is said that the storekeepers and
gaugers express the opinion that the
Watts law does not prohibit the business
of rectifying, and they declare that a man
may locate rectifer near some distillery,
and then ship the whiskey to himself in
some large town. where he can sell it
either to the wholesaler or to the retail
trade 1t is from the rectifying plant that
the distiller realizes much of his profit,
and at every plant a gauger must be To-
Gated In many cases it is said that with
try to continue to operate his plant in
open and bold defiance of the State law
But the State officials will not brook
this defiance, and in case the distillers
continue their stills it appears that
scores of arrests will be made, and this
in turn means that an early decision on
the constitutionality of the Watts law will
be imperative. Not only this, but distil-
ferIes cannot run without the superin-
tendency of deputy collector and store
keeper and gauger, and the interesting
fact has developed that the collection of
Internal Revenue will assign such officers
to duty whenever distiller exposed his
determination to continue operations.
ATTORNEY GENERALS OPINION
A construction of the State law, the
Watts Act was asked yesterday of At
torney General Gilmer, WHO is in the city.
In response to inquiries about the matter,
General Gilmer gave News and Observer
reporter the following opinion:
THE principle that a State has full pow
er to enact any and all laws regulating
the liquor traffic is no longer an open
question. 1t would be easy TO multiply
authorities in support OF this proposition.
The matter is peculiarly within the police
power of the State, and Is beyond either
the control or interference u the Fed
eral constitution. In the enactment of
laws regulating the traffic in intoxicants
the hand of the Legislature cannot be
stayed
Gas far back as 1S47 Chief Justice
fancy, of the Supreme Court of the UNI
ted States said: If any State deems
the retail and internal traffic in ardent
spirits injurious 20 its citizens. / see moth
ing in the Constitution of the United
States to prevent it from regulating and
restraining the traffic or from prohibiting
it altogether, if it thinks proper.
There can be no question about the
power of the General Assembly to pass
the Watts bill and the operator of any
distilery who continues his business IN
violation of its provisions, and will subject
himself to punishment as provided by
law. No license issued by the Federal
authorities nor any bond will avail IN the
face of the mandate of the Legislature
of the State In the light OF so many
judicial opinions. / do not think that
any question in regard to the matter will
ever arise from judicial government
This is the opinion of the legal adviser
of the State. After careful study of the
Watts law he finds it to be sound and
solid, and basing his opinion upon his
knowledge of the laws of the United States
and the State he holds without a shade
of doubt that the distiller must go out of
business.
THE FEDERAL POSITION.
In the Western District of North Caro-
lima, Collector H. S. Harkins, OF Ashevllle.
communicated with United States Com
missioner of Internal Revenue John w.
Yerkes with view to ascertaining the
position of the department with reference
| to the renewal of bonds of distillers. The
reply of the commissioner has set the high
err revenue officials to specializing on what
is likely to happen, for that Official made
! it plain that department officials felt that
they could not do otherwise than issue the
bonds where there were sought, as to issue
such bonds would simply be in compll-
ance with the internal revenue laws.
The letter of Commissioners Yerkes to
/ Collector Harkins, under date OF June
| 10th, written from Washington, is as fol-
| lows:
H. S. Harkins, ESQ, Collector Filth
District, Asheville, North Carolina.
sSir:-In reply to your letter of enquiry
of the 18th instant, you are hereby adVls-
ed that a person can properly and law
fully qualify as rectifier in one city
and as wholesale liquor dealer in another
city. and transfer rectified spirits from
himself as rectifier at one place to him
self as "a wholesale liquor dealer at another
place without subjecting himself to special
tax as a wholesale liquor dealer at the
place in which he is engaged III the bust
ness of rectifying; and that the rectitied
spirits in transit from his rectjfying es
Establishment to his wholesale house in
packages, properly marked and branded
and bearing the rectifier's stamp, are not
subject to seizure under the internal rev
enue laws of the United States by reason
of the absence of a wholesale liquor deal
cr's stamp.
Respectfully,
~. w. YERKES,
commissioner"
The position which some distillers may
take under this letter may complicate
matters and lead to clash
MANY of the distillers have indicated theil