Capital journal. (Salem, Or.) 1919-1980, 1919-12-16
DISPOSITION Of
BONDED WH|SKEY
PUZZLES OWNERS


Omitted Press Staff Correspondent. J
Washington, DE. 16.-Bonded liquor
held with the expectation that the war
time ban would be lifted. now is ''eat-
ing its head OFF, in warehouses at the
rate of three and one-third million
dollars monthly in carrying charges. 1t
was conservatively estimated here to-
day
Owners of the liquor today flooded
government officials with kilograms de
mandfng what they should do to .'get
out from under" The kilograms be-
gan to clog the Washington wires as
President Wilson let 1t be known he
cannot legally lift the war time ban
while peace is not concluded. This ID
the position he has held for months.
II was the decision of the supreme
court yesterday which precipitated the
rush Of telegrams In this decision the
agar time prohibits n act WIS neld con-
stitutional 1t seemed to blast the last
hope of liquor dealers for short wet
spell before the big drought begin jan
nary 16, when constitutional prohibit
fion is scheduled to become effective.
Officials Cannot Answer.
Government officials today were un-
able to give an adequate answer to the
question OF what to do with the bond
ed liquor, at least from the point of
view of the owner hoping to get back
part or perhaps all Of his investment
and to shut off the carrying charge.
The estimated original investment to-
day was placed at approximately $S3,-
0D0.0 900 for $1,000, 900 gallons of liquor
with which the owners now seem I,
have been caught. This is In addition
to the carrying charge. The bonded
supply Includes 63,s42,931 gallons ofl
whislxey more than 100000 gallons
brandy, approximately 100000 gall
Ions OF gin and slightly less than 50O,-
600 gallons Of rum. These are govern,
mcnt figures.
81 have discussed the question of the
bonded liquor with several officials,
said Federal Prohibition Commissioner
Kramer. 1T constitutes one of the big
problems resulting from the decision of
the supreme court. am not yet pre-
pared to say what can or will be done
with IT,,
Difficulty with Law.
The difficulty Is that under the war
time law liquor can legally be with
drawn from bond now only for expor-l
tation and for non-beverage purposes
And no one yet has found non -bever-
age use for liquor in sufficient quan-1
titles to consume 67.OOO,000 gallons in
a reasonable time.
To re-distill for the alcohol 1t con-
tains is commercially impracticable.
Pure alcohol mt the distillery now
brings 57h cents n gallon 1t takes
two gallons OF whiskey to make one I
gallon of alcohol. And to get two
gallons OF whislxey out of bond costs
s4.40 in taxes. The tax is 1920 perl
gallon for non-bcverage purposes. The
ss.40, of course. does not include the
cost of the whiHkey.
A slight dent may be made In the
bonded supply through use of the whis
key by toilet supply manufacturing
plants as a base for bay rum and per-
fume IL the prices does not mount too
high. Also drug stores will need sup
ply, but this need is small in compari-
son with the amount on hand.
f6O-Ycsr Supply.
Officiais said today one estimate is
that the non-beverage uses now known
would consume the bonded stock Of
whiskey In f6O years. At this rate the
whiskcy would mean an Investment OF
something like $1O0 a gallon in the
i6Oth year. according to one statisti- /
clan.
The possibility OF getting any great
of the stocks out of the coun-]
try by exports liz slight. The law pros
iiihits expectation after midnight OF
January 16. Dealers now are export |
ing II as fast as possible. In October
exports totaiiod s23.o00 gallons OF all
kinds OF beverage liquors., commerce.
department records show. This was
valued at 81. 20 per gallon. according ~
reports to customs collectors. In some
cities whIslSey now is bringing sac all
gallon IN "bootlcEger" sales.
There is one more perplexing angle I
TO the problems. Under tax laws whis-
key may remain In bond only eight /
years. At that time It must be removedt !
and the tax paid. Much of the whiskey
now In bond has been in nearly eight