South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-03-14
LITTLE WHISKY
IN WAREHOUSES;
Effect of Approaching PrOhi-
bition on Consumers Storing
Away Liquor Unknown.

WASHINGTON, March Ina
tional prohibition next JuIy WIN find
only about $4,000, 600 gallons of
liquor in bonded warehouses, barred
from disposition for beverage pur-
poses, if the present demand for
whisky continues during intervening
months. Officials who have observed
the effect Of high taxes in the past
believe. however. that Withdrawals
from bond will decrease under the
new revenue law, and that between
100000 and $4,000, 600 gallons will
be left in warehouses July 1.
1t is conceded that il is impossible
to foresee the effect of approaching
prohibition on the demand for liquor
10 be stored away by consumers, and
officials say a big movement Of buy
ing even under the increased tax,
may develop and leave the quantity
of liquor left in bond smaller than
the advance estimates. .
The estimates do not take into
consideration liquor which may be
stored in cellars or attics of pros
pective consumers. Nor do they in
clude any stocks which wholesale
or retail dealers may not sell before
the prohibition wave catches them.
These are measurable by any Off
ciaI reports.
Revenue bureau officials calculate
that at present bonded warehouses
connected with distilleries, but under
lock and key of government agents,
hold less than 9O.0OO,OOO of the 20O,-
GOO, 900 gallons in stock when man
ufacture ceased Sept. Q, 1917 under
the food conservation act. With
drawals in January and February
have been less than the 100000 or
more gallons in December, accord
ing to indications based on prelimin-
airy reports from revenue agents.
on Jan. 1. 100000 gallons OF
distilled spirits were reported IN
bond. including 100000 gallons not
available for beverage purposes.
About - per cent of those figures
must be deducted as allowance for
eakage and evaporation from bar
rels. ON Dec. /, the latest date for
which itemized figures are available,
the stock OF distilled spirits in bond
was distributed as follows: Whisky
1OS.S46.OOO gallons; rum. SOC. 900;
gin. 2.33S.0O0: alcohol 100000: re-
fined alcohol or high wines" s.
$4,000; and brandy, 2.316.O00.
The normal rate OF demand. meas
ured by withdrawal from bond. had
been between 4.50O. 600 and 5000
600 gallons a month until last Octo-
Der. when Withdrawals jumped 20
S.25S. 900 In November they were
9.597.0OO, and in December il is es-
timated they ran over 100000 gal
Ions. while in January and February
indications are that the demand
probably was nearer 100000 gal
Ions. Most of this liquor was taxed
when taken out Of the bonded ware
house AT the rate of $500 a gallon
Under the new revenue act. the rate
Is doubled. amounting 10 $40. Con
sequently the increase amounts &c
$500 a gallon or so cents a quart
and the aggregate tax per quart is
$3.50.
By terms OF the pending bill pro-
Viding for enforcement OF prohipl-
tion under the constitutional amend
ment effective next Jan. 16. the pres
ident would be empowered 10 appro-
PIRATE for government purposes the
stock OF liquor left unused in ware
houses. The price 10 be paid To-
! this would be determined by agree
ment or by special commission