, 1919-12-25
Supreme Court Deals Hard Blow
to the Vets and They Stand
Up to Get Another.
NOW ATTACKING AMENDMENT
Attorney General Palmer Persuades
the Packers to Abandon Their Side
Lines-Fiume Agreement Blocked
by D'Annunzio's Troop@Grow-
Ing Sentiment for Peace
Treaty Compromise.
BY EDWARD W. PIcKARD.

Like u real tragedy to a great many
citizens of the United States was the
chief event of the past week-the deci-
sion of the Supreme court of the Unit
ed States unfolding the constitutional
ity of the wartime prohibition act.
1t was a aver blow not only for the
men who hoped to renew their fast
%dwindling supplies of private stock"
before January 16, when the constitu-
tional prohibition amendment goes in
to effect, and to the dealers who had
hoped for a chance to dispose of their
vast stores of liquors, but also to many
banks that had made loans or whisky
certificates totalling perhaps 100000
OOO. 1t was estimated that the govern
ment would lose in taxes about $780,
100000, and that the loss in physical
value of plants and other property
would be 100000 900. The total was
roughly put at a billion and a half
Of dollars.
The cases decided were those of the
Kentucky DistilIeries and Warehouse
company of Louisville, KY, and Dry
foos, Blum & Co. of New York. insti-
tuted for the purpose of compelling
the government to release whisky
from bond.
In both cases the court denied con-
t~entions of Elihu Root and other at
torneys for the distillerles that the act,
in violation of the constitution, takes
private property without just compen-
%sation; that the period of the wal
emergency, for which the act was
passed, had terminated that the law
was an interference with the state po-
lice powers n an undue exercise of
the war powers of congress.
The wartime act, the court held, is
not confiscatory, asserting that more
than seven months were given distil-
time the court believed to be adequate.
The act also was not repealed, the
court held, by the prohibition constitu-
tional amendment. which. it asserted,
is binding not only In peace, but also
in war times.
The vets did not give up all hope,
but at once went to work on new
lines, previously prepared" The Re
tail Liquor Dealers association of New
Jersey and the state of Rhode Island
both asked the Supreme court for per-
mission to institute original proceed
ings to have the national prohibition
amendment declared unconstitutional
and to enjoin federal officials from
enforcing 1t. Rhode Island is one of
the states that did not ratify the
amendment, and the present action
was taken by direction of the legisla-
ture. These attacks on the amendment
are based on the allegation that 1t
violates the fifth amendment to the
constitution. which prohibits the TAX
ing of private property without just
compensation, and also on the charge
that It is an Interference with the
state police powers.
Another attempt to repeal the war
time prohibition law was made in con-
gress, but the house agriculture COM
mittee reported unfavorably on the bill
by a vote of 16 to 3. Representative
Rainey of Illinois made the only argu-
ment for repeal. urging that the wet
seriod should be allowed. so the per-
sons of small means could lay in a
stock of liquor for medicinal pur-
poses, and the government could col
lect $50.O00.000 in revenue taxes.
Ever since he assumed the office
of attorney general, Mr.. Palmer has
been at work on a plan to curl the
fast growing interests of the big pack