The New York herald., 1920-12-30
CHECK ON ALL STOCKS
Dealers in Tax Paid Product
Barred From Obtaining
Beverage Kind.
MOVE IN EFFECT MARCH 1
Licenses Secured Only After
Investigation and Approval
of Enforcement Chiefs.
Special Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. c., Dec. 20.

Special Despatch to THE NEW YORK HERALD
New York Herald Bureau
Washington, ID. c., Dec. 20.
In a supreme effort to break up
bootlegging and whiskey running in
the United States through the check
ing of the supply at the alleged source,
the Treasury Department to-day is
sued new regulations governing is
suance of permits for the wholesale
handling of industrial alcohol.
Under the new regulations. formu-
lated as a supplement to regulation
No. 60, it is specifically provided that
permits to deal in tax paid industrial
alcohol will not be issued to wholesale
dealers who have permits for the
handling of beverage alcohol.
Prohibition enforcement officers have
said that the great source of Illicit
whiskey in the United States was from
the supplies withdrawn by wholesale
ding Of beverage alcohol and indus
trial alcohol in large quantities.
It was said that beverage alcohol
withdrawn for industrial or manufac-
turing purposes and for disposal to re-
tail dealers in the drug trade leaked
TO the so-called whiskey rings that ped
died it to bootleggers in various sections
of the country.
time ago served notice that new permits
for 1921 to wholesale dealers Of all
kinds should not be issued except
through prohibition headquarters here.
and then only to applicants whose pa
pers were approved by the district pro-
hibition officers. There are at present
hundreds of wholesale permits outstand-
ing.
Harder for BOOtIeggers.
The supplement to regulation No. 60
made public to-day, effectively segre-
gates industrial and beverage alcohol
in the wholesale houses. Under this ar
rangement II is expected to reduce to a
minimum the permits for the handling
OF beverage alcohol in any form, thus
reducing the possibility of It's diversion
to Illicit uses. For weeks now boot
leggers in the eastern part of the coun-
try have been finding difficulty in OBJ
tanning supplies of reasonably good bot
tied in bond whiskey. which Is the IA
vorite and highest priced of the alcoholic
beverages that can be bought in practi-
cally every city.
March 1. They provide that "the term
alcohol as used in these supplemental
regulations means that substance known
as ethyl alcohol. hydrated oxide OF
ethyl or spirit of wine, from whatever
source or whatever processes produced.
having n proof of 100 degrees or more,
and does not include substances COM
monty known as whiskey brandy. rum
or gin.
Permit to deal in tax paid industrial
alcohol in original stamped packages
only will not be issued to persons holding
permits form 1405 to deal in intoxicating
liquor. as defined in Section /, title IL,
of the National Prohibition Act. in
wholesale quantities. where Intoxicating
liquor of any description. other than al
cohol as defined in Article 1 of these
supplemental regulations, Is also dealt
In.
Permits to he IndOrsed.
wholesale dealers holding permits
form 1905 now limited to dealing in al
cohol exclusively and wholesale dealers
who hereafter desire to deal in alcohol
in original stamped packages exclu-
sively may make application in triplicate
to the Federal Prohibition Director on
Form 1405-A, to be classed as n whole
sale dealer in tax paid Industrial al
.cohol. and receive ninety day permit
TO purchase such alcohol in original
stamped packages only, form 1410 C.
The Federal Prohibition Director will in
dorse his approval or disapproval on
each copy of the application and for
ward all three copies to the Federal Pro-
hibition Commissioner. who will approve
or disapprove the same.
''The permit form 1410-C will be is
sued for fixed number of proof gallons
not exceeding the maximum quantity
covered by the applicants bond In the
case of bonds In the penal sum OF less
than $4,000. In the case of bonds in
the maximum penalty sum of $1,000
the number of proof gallons will be
based upon the estimated requirements
of the applicant for a period of ninety
days.
Provided that the limitations on the
issuance of permits to deal in tax paid
Industrial alcohol In original stamped
packages shall not apply to dealers who
may lawfully deal In the United States
pharmacopoeia and national formulary
preparations. held to be intoxicating
liquors in Section so. Paragraph r.
Article XI. OF regulations No. so and
amendments thereto. but sales of such
preparations may only DC Hldue puT-
suant TO permits TO purchase form 14i0
as now provided.
"Any person now holding permit form
1906 TO use alcohol, including retail
druggists holding Glass I. permits. may
make application In triplicate on form
1l05-B to the Federal Prohibition d.
rector 70 be classed as a user of indus
trial alcohol and receive a ninety day
permit TO purchase such alcohol In
original stamped packages only, form
l4l0-C.
wholesale druggists who qualify as
Industrial alcohol users. but who sell
Intoxicating liquor other than alcohol in
original stamped packages, may procure
alcohol for theirn own manufacturing
use on permit form 1900. Such alco-
hol as they wish to resell either as a
wholesale liquor dealer or as a retail
liquor dealer must be purchased pur-
suant to permit form 1910 as now pro-
vwsed, and such sales, whether In
original stamped packages or otherwise.
may only be made pursuant to permit
to purchase form 1910"