The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-11
DESTROY ALL
RUM IN LAND,
DHYS DEMAND
To Ask Congress for Dras-
tic New Laws and Larger
Enforcement Fund.
BIG LOBBY is IN PLAN
Would Have $685. 100000
Appropriated to Buy Up
Present Stocks.
TRYING TO ENLIST BANKS
Distillers Are Reported Ready
to Have Taxpayers Go to
Their Rescue.
BIG LOBBY is IN PLAN
TRYING TO ENLIST BANKS
speetal Despatch TO THE HERALD

Special Despatch TO THE HERALD.
WASHINGTON, Oct. 10.-Comprehen-
sive plans for checking Illicit traffic in
whiskey through the shutting off of
Withdrawals at the warehouses of the
country are being drawn by the pro-
hibition enfor cement officers OF the
Treasury. recommendations are to be
made to Congress not only for a vast
increase in the prohibition enforcement
fund of s4,500,000 a year, but for
changes In the law that will make II
easier to shut off the number of per-
mits granted for wholesale dealing in
whiskey and to give enforcement Of
ficers a closer check on what is with
drawn.
For months great quantities OF
whiskey have mysteriously flooded the
shadowy markets of the big cities, par
t;cularly in the East Prohibition Of
ficers do not know where il is coming
from, but they draw the easy deduction
that il is slipping from the hands Of
the authorized wholesalers into the
hands of those who illlcitly traffic In It,
outstanding permits to wholesalers to
withdraw whiskey from bonded war;
houses and dispose OF IT on Government
permit to those authorized to use 1t 10 .
medicinal and other purposes and for
non-beverage use. These authorized re-
tailers, including the drug stores of the
country. number fewer than 12,50O, so
that there is a wholesaler for every four
or five retailers.
WhislSey may be withdrawn for many
legitimate purposes, but there is no es-
Gaping the evidence that much with
drawn finds its way into illegitimate use.
Enforcement officers are prepared TO
fight this situation hard. They feel that
the widespread bootlegging, which has
forced the price of whiskey down In
some instances almost to preprohibition
levels, = n reelection on them
Drys' Plans Closely Guarded.
Prohibition advocates also are pre-
pared to fight this situation hard. Some
organizations that brought about the
national drought" are seriously consid-
ering a forceful campaign before the
next Congress to have the Government
confiscate and destroy all the whiskey
there is except n minimum amount for
medical purposes. Plans for the cam
palgn and a great lobby before Con-
gress are being closely guarded. but
they have been more or less widely dis
cussed
The undertaking by the Government.
would be n mighty expensive one and
IL not expected to find much favor.
Should the Government destroy existing
stocks reimbursing the good faith hold
ers Il would mean burning or dumping
something like 100000 gallons OF
whiskey alone, not counting rum, wines.
ccrd ais, gin and all other particularly
palatable spirits.
On the present market the wholesale
value of this whislSey, which does not
tnke into account taxes on other costs
Incidental 10 withdrawal from ware
l,ouses. is something like SO a gallon
even IL II does cost as high as $50 a
Gallon from the bootlegger. This would
n AXE the total cost for destruction
OF something like $i35,0oO,o0O OF the
taxpayers money. something that an
economy Congress is not likely to look
upon kindly at n time OF difficulty IN
making expenditures come under re-
ceipts, even with heavy war taxes still
running and likely TO run.
Should the contemplated campaign
be sprung upon an unwilling Congress
however. II will have a strong pressure
OF support from unsupported sources
according to officials In Washington IN
close touch with the situation. Many or
the country's leading banks and bankers
would welcome such a programme. They
have whislxey warehouse receipts that
they would be glad to get rid of. The
sum involved represents many million
dollars particularly in New York,
Pennsylvania. Maryland and Kentucky.
A great majority OF the distillers
would also vigorously support such a
move, as it would relieve them OF further
stock and interest in a perilous bu siness.
They would like TO sell out at a fair
price to any customer. particularly 20
Uncle Sam. Regret would lie princlpa "
with the consumers who are willing 90
pay as high as $50 a quart. and with
tho Illicit traffickers. who. by devious
ways. have kept up an undiminished
supply. There IL no question that a great
part OF this supply came In the early
days of prohibition from stocks that had
been purchased in advance. but prices
seem 10 indicate that this supply has
been increased recently, rather than
diminished.
Vast Supplies Arc "1nvi-ibIe."
Withdrawals from the Government
bonded warehouses give n similar infer
ence. In five months. from February I.
Just after the Eighteenth Amendment
became operative, to June 30. 5e35 0S9
gallons OF whlskey left the $50 or more
bonded warehouses. This came out OF
the known supply. that OF which the
Government has a record. There are.
or were, millions OF gallons OF which
tho Government knows nothing. from
-1oonshinc TO that which left distilieries
early and found storage In unknown
places. OF the nearly 100000 gallons
Continued ON girkccnth pnnc