New-York tribune., 1920-11-09
Justice Clarke's Decision
May Release Ten Mill
ION Gallons Acquired
Before Prohibition Bar,
Sweeping Change
I'm Enforcement
Opinion Is Rendered On
w. G.. Streets Plea in
Storage Warehouse Case

WASHINGTON, Nov. BY The AS
sociatcd Press) storage Of lawfully
acquired liquors in commercial ware
houses and the transportation of such
stocks to the home of the owner arc not
prohibited by the Nolstcad act under q
decision handed down to-day by the
Supreme Court.
In passing upon the appeal of Will
lam G. Street, Of New York, from de-
cisions of lower courts refusing to
enjoin internal revenue officials from
seizing liquors he had placed in a room
rented from a safe deposit company
the Supreme Court reversed the lower
courts and held that the injunctions
should be granted.
100000 Gallons Affected
The effect Of this ruling had not been
fully appraised tonight by internal
revenue and prohibition enforcement
officials. The belief was expressed
however, that the result might be the
release of about 100000 gallons Of
Intoxicating beverages which have been
stored ,aso in warehouses since January 1s
Records on file here show that, in ad-
dition to immense quantities of. liquors
purchased and stored by individual
consumers, there were in storage when
the Volstead act became effective
large stocks held by hotels an ! res
taurants as reserves. Whether these
latter stocks come within days rul-
ing has not been determined It was
anticipated that test cases would be
filed soon on this and similar questions
arising from the undetermined score OF
the new Interpretation Of the Volstead
act.
Liquor Transportation Upheld
Justice Clarke, who rendered the
opinion to-day, held that the transpor-
tation Of liquor from warehouse stor-
age to the owners home would be legal
if the liquor had been lawfully
acquired and was for q lawful purpose
He said:
THAT transportation Of the liquors
is not such IS is prohibited
by the section is too apparent to justify
detailed consideration Of the many pro
visions of the act inconsistent with 6
construction which would render such
removal unlawful, and that the act is
understood BY the officers charged with
its execution as permitting such trans
portation is shown by the provision OF
the regulations Of the Bureau of In
Al.<
the transportation of liquor from one
another in the case Of his removal
although no such transfer is in terms
provided for by the act"
The opinion declared, however, that
internal revenue authorities undoubt-
edly had the administrative power to
regulate the transfer Of such liquors
so as to prevent their use in violation
of the law.
can intention to confscate private
property the opinion concluded, "even
in Intoxicating liquors, Will not be
raised by inference and construction
from provisions of law which have
ample field for their operation in eff
fccting purpose clearly indicated and
declared"
Court Defines Question
The question presented, Justice
Clarke said, was simply MAY a ware
housing corporation lawfully permit to
be stored in its Warehouse, after the
effective date of the Volstead act,
liquors admitted to have been lawfully
acquired before that date and which
are so stored, solely and in good faith,
for the purpose of protecting them
Until they shall be consumed by the
owner and his family or bona fde
guests ?"
After answering the question in the
affirmative, Justice Clarke declared the
court could not bring itself to the con-
clusion that such retention Of the
liquor on the part Of the storage COM
pany constituted possession" within
the meaning of the section under CON
siGeration, nor would the Transports
tlon Of such stores to the legal resi-
dence of the owner from the ware
house constitute transportation -
under the act.
The opinion suggested that Congress
might have Inadvertently omitted hav-
lng declared such storage unlawful
tut regarded it as more probable that
the trainers of the law had deliberately
LEFT this means of preserving lawful
Continued on page sIx)