Arizona republican., 1920-11-09
]. 5. COURT SAYS LANF JULY
 ACQUIRED NUT TO BE CONF ESCAPED
Ten Million Gallons of In- toxicating Beverages May Be Released From Bonded Warehouses by Ruling
rReUubIIcan A. p. Leased WIrel


 WASHINGTON, Nov. S.-Storage Of lawfully acquired liquors in commer- cial warehouses and the transportation of si1ch stocks to the home of the owner Is not prohibited by the Vol etaad act under a decision handed down today by the supreme court In passing upon the appeal or William U. Street of New York from decisions or lower courts refusing to enJoln inter nal revenue officials rom se.zins liouors that had been placed in room rented from a safe deposit com nany. the supreme court reversed the lower court and held that the injunc- tions should be granted.
 The effect of this ruling had not been fully appraised tonight by inter nal revenue and prohibition enforce ment officials. The belief was ex- pressed however, that the result might be the release of some ten million gallons of intoxicating beverages stored in warehouses since January l6, 1920.
 Records on file here show that in addition to immense quantities of Iiquors purchased and stored by indi- vidual consumers there were in storage when the Volstead act became effective large stocks held by hotels and restaurants as reserves. Whether these latter stocks came within to- days ruling has not been determined. |. It was anticipated that test case would be filed soon on this and similar questions arising from the undeter- mined scope of the new interpretation of the Volstead act.
 Justice Clarke who rendered the opinion today held that the transpor- tation from warehouse storage to the owners home would be legal if the liquor had been lawfully acquired and for a lawful purpose.
 He said:
 Power of Revenue Department
 That transportation of the liquors is not such as is prohibited by the section is too apparent to jus 1 tify detailed consideration of many provisions of the act inconsistent with l a construction which would render such removal unlawful and that the act is understood by the officers charged with its execution as permit ting such transportation as shown bS the provision of the regulations of tht bureau of internal revenue authoriz- | ing permits for the transportation O. of an owner to another in ths case O l his removal. although no such transfer l is provided for by the act"
 An intention to confiscate privat property the opinion concluded, lever in intoxicating liquors will not b raised by inference and construction from the provisions of the law whicl have ample field for their operation in effecting a purpose clearly indi ated and declared"
 Justice McReynolds, concurring i the Judgment of the court dissented a to the reasoning in which it wa reached.
 ''I think the Volstead act was prop erly interpreted by the court below, he said, 'but to enforce it as thus con strued would result in virtual confis 1 cation if lawfully acquired liquors b preventing or unduly interfering wit their consumption by the owners. Tn eighteenth amendment gave no sue power to congress. Manufacture, sal and transportation are the things pro
 hibited .. not personal use." Enforcement Office Busy
 Prohibition enforcement officials bt gan studying the decision immediatel. The opinion was frankly expresse that many changes would have to [
 made in the enforcement regulation
 but pending detailed study of the cas
 and the circumstances surrounding tl
 litigation, no official statement WE
 forthcoming.
 One effect of the decision foresee
 was the danger of increased oppol
 tunity for fraud among persons seel ! ing means of violating the law. Witl out the check on transportation pr'
 vided by the permit system officia indicated that they expected great ! difficulty in controlling unlawful sale X decision had not been reached t, ] night as to whether the courts inte = pretation opens hhe way for unr Il stricted transportation in intersta e commerce. That transfer can be mat f within a state apparently was specif = but the language of the court wh'
 analysed may yet show. officis 1t thought. means where by intersta t transportation can be stopped. In | : particular case involved it was point = out, the owners residence and t
 place of storage were within the sar e state and, in fact in the same ci1 y In connection with the transport e ton of liquors, officials said that v would be difficult if not impossible i
 them to determine the legality of pu le chases and whether the stored stoc j. had been obtained prior to the effe ;; tive date of the Volstead act. TT IS was expected to result in more stri d gent regulations with respect to wit le drawals gof beverages from bond g warehouses but the same regulatio d cannot be made to apply to ordina It storage warehouses. Stored stoc a- therefore, are again without the law ,. a great degree, officials said, addi D. that they anticipated It's speedy ] r. moval from such storage.
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