Los Angeles herald., 1909-04-16
HEWITT TO STOP
LICENSE GRAB BY
BREWERY TRUST
REVOLUTION is EXPECTED IN
LIQUOR BUSINESS
NO TRANSFER OF PERMITS LE-
GAL, SAYS CITY ATTORNEY
Ruling of Official Will Break Back
bone of Combination That Has
Been Controlling Rights
to Conduct Saloons


AAs>licenses was dealt by City Attor-
ney Hewitt last night in his opinion TO
the police commission on the transfer
of liquor licenses.
Says Mr.. Hewitt:
sWhen the holder of liquor license
dies or goes out of business or LOT any
other reason gives up his permit TO
conduct that business the license re-
turns to the police commission. Inc
police commission has no power TO
transfer that license. The appncant
for the transfer must get an entirely
new bermit. When liquor dealer
changes the location of his business
he must get a new permit The license
itself is nothing but a receipt to snow
the liuuor dealer has paid his monthly
fee. The permit is personal privilege
granted an individual to conduct GER
tain kind of business at a certain
place"
was read to the police commission last
night amid a dead silence In spite OF
the fact that the room was filled with
interested liquor dealers. Among those
who took a deep interest in the pro-
ceedings were Thomas <Roulo, valiant
commander of the knights of the Royal
Arch, and Herman Goldsmith of the
liquor firm of Goldsmith Brothers.
Makes Protest
Mr.. Goldsmith seemed the most dis
tressed of any of them and talked long
and earnestly to the board.
sThere is more than the mere point
of legality involved in this" said Mr.
Goldsmith. There is a moral right In
volved as well. 1t has become custom
by twenty-five years usage. Our busi-
ness is no good without the permit 10
conduct it, and unless we are assured
that the person we sell out to is to be
granted the permit we have held, how
are we going to sell? 1t has been stated
that the majority of the licenses are
held al valuations of from $4,000 to
$4,000. That represents the good viii
of the particular business house that
wants to sell. The license is the good
will, for without the license the pusi-
ness is nothing.
II want to ask If we can be assured
that il we sell out to people of good
moral character who are responsible
and fit to conduct a liquor business,
can we be assured they will be granted
the license to do the business?"
Mayor Alexander almost lost his tenn
per at this question. 1t was so much
like those propounded during the cam
paign when dry town was threatened
If he was elected mayor.
"Have you seen anything about this
commission to suggest that the liquor
interests would not be given fair treat
ment?" he asked sharply.
Promises Fair Play
Then Commissioner Andrews went on
record, saying that as long as the liquor
dealers conducted themselves In a law
abiding manner he would go as far as
any one to see they were protected, In
their rights. Mayor Alexander and
every other member of the commission
echoed this sentiments
But 1t appears there will be division
of opinion among the members of the
police board on the best method Of dis
posing of licenses when they come into
the hands of the commission.
Commissioner Graham and Topham
and Mayor Alexander were outspoken
in their ideas that these licenses be
auctioned to the highest bidder, pro-
vided that highest bidder was the right
person to have the license. Commits
sioner Trask declared he did not believe
it was right for the city to receive rev.
enue from the sale of permits as these
permits were not property and had no
value. Commissioner Andrews did not
express himself on the subject.
The police commission now has a re-
tail LIQUOR permit to dispose of. Last
H
retail permit, died. Last week his son.
David Arbogast, asked to have the per-
nit transferred to himself. Under the
ruling of the city attorney this cannot
be done. David Arbogast must apply
for saloon permit. 1t is probable this
will be given him, If he proves to be
the proper person to have the permit
But the police commission is conf
dent that If no other good comes from
this ruling of the city attorney 1t will
take the value out of the licenses as
far as the breweries are concerned.
Mr.. Hewitt's opinion was as follows:
\ Hon. George Alexander, Mayor of
Los Angeles.
Dear sir: I am in receipt of your
request for a written opinion as to
the power of the police commission
to grant transfers of liquor licenses,
and also as to the power of said
commission to grant permits for the
change of location of those who
hold such licenses. In answer to
your inquiries beg to say:
sThe charter of this city (section
95A) provides as follows:
1.-THE board of police commits
sioners shall have power to
grant permits, under and in
conformity to the ordinances of
said city, authorizing the city
clerk to issue licenses to per-
sons DESIRING 10 tilSdSo i'll tIl6
sale of liquors, and to revoke
any such permit when it shall
appear to the board that the
business of the person to whom
such permit was given is con-
Quoted in an illegal, disorderly
or improper manner. Without
such permit no person shall en-
gage in the business of selling
liquor"
Right to Grant Permits
Under the foregoing provision OF
the charter, therefore, the power
of the police commission to grant
liquor permits is subject to the
limitation that such power. shall
only be exercised under and in
conformity to the ordinances" of
the city.
Your first question is directed to
the transfer of liquor licenses"
and by licenses" | shall assume
that you really mean permits, .
because the right to sell liquors
inheres in the permit, upon which
the license is founded, and not in
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