The sun., 1919-07-20
SAY DRYS IGNORE
PROPERTY RIGHTS
knell Of Prohibition Seen by
Vets in Action Of No
Liquor Forces.
PERIL IN LOSSES Barred
Banks Hold $50,000000 in
Whiskey Paper Which
Is Affected.

Absolute disregard OF the rights of
property has characterized the attitude
of Prohibitionists in Congress and else
where in power. In the opinion OF law
yers consulted by the Association OPP
posed to National Prohibitions. These
consultants profess to believe that illegal
invasion of constitutional property
rights may prove to be the knen OF
both war time and Federal amendment
bono dry laws.
I'VE have had three weeks of partial
prohibition" says a statement given out
by tho association yesterday. "and In
that time the most significant thing
to be observed is the trend OF all legis-
lation and litigation toward confiscation
of property. One OF the principal issues
is whether liquor stored by a private
citizen shall be subject TO search and
seizure-to be dealt with as a public
nuisance-or protected as private prop
Ierty. The courts are in confusion as
to decisions, British investors in Ameri-
can breweries are threatening actions to
recover damages and Congress is pro-
ceeding with an enforcement measure In
which tho jealous drys threaten to in
corporate denial of the right Of a
citizen to store alcoholic beverages in
his own house.
Financial Crash Feared.
ION July 1 bankers estimated that
About s50.oo0,0oo in whiskey loans were
outstanding. 1t was then estimated that
o. Att n 80 n iol<a
still held in bond, and upward Of co.
100000 additional gallons in floor
stocks This whiskey and a great deal
more On private homes was somebody's
property wherever 1t may have been on
July /. On that day Its value was
vitiated by war time prohibition.
Some Of this property was mortgaged
In good faith. Banks held honest paper
on 1t, only to have their security made
valueless. And this comes at a time
when all available assets are required
for the great task of financing after war
requirements
1T was President wilson's fear, openly
expressed by Senator Sheppard, that IN
less the war time act were put Off for DIT
least twelve months to give hotels and
dealers opportunity to get rid of their
stocks there might be financial dis
turbance in a too sudden liquidation of
bank paper with these beverages as 'se-
curity. When the drys in Congress were
fixing a date for the law to take effect
the President was quoted by Senator
Sheppard as being fearful of financial
disturbance. 1t thus appears that the
Executive has not been unmindful OF
property rights in regard to the bone
dry scheme of the Anti-Saloon League
"A prominent New York lawyer has
NJ "a % 10
association:
LAS you are aware. one Of the very
serious effectS of the war time act Is the
sequestraton Of beverage liquors In bond
and the practical destruction OF the
value OF the warehouse certificates-the
evidence of the Governments contracts
with distillers, largely used as collateral
, relied upon by the banks as negotiable
paper under the decision OF the United
States Supreme Court affirming the va
lidity OF such papers. Justice Hughes
writing the decision. Impsiring the OBJ
| legation of contracts in the manner de-
scribed Is a gross violation OF the Fed
eral Constitution, which explicitly for
| bids any such legislation OF action.
Dartmouth Case Cited.
"'one OF the memorable cases under
| this constitutional inhibitioA against I'M
pairment OF contracts was that involv-
ing the financial interests OF Dartmouth
| College. argued and won by Daniel Web
ster for the college. The argument and
decision in mat case are landmarks in
legal history and may apply to the leg
, islation by Congress breaking the Gov
| ernment's own contracts for bonding
during eight years the lawful property
OF citizens. permitting them to tax-pay
and sell at any time within the bonding
period.
| ".The Federal Government can as
sumo Jurisdiction to enforce the Law
after July l only upon the theory that il
Is a war measure. The general disposi.
! ton to observe the mandate of the law
, Is praiseworthy. And 1t is to be pre-
sumed that men who have been halted In
their business under the assumption OF
wars necessity will prefer to await the
Presidents promised proclams ton rather
than to make effort TO test the suffi-
cheney of the law for assuming jurisdic.
ton to override the States authorize
ttion Of liquor sales up to October l. and
| thereafter the tax certificates are taken
out. Business interrupted has its rem
eddy in Just compensation" for all
| losses"