The New York herald., 1921-03-07
NEW RESTRICTIONS
ON DISTRIBUTION
OF LIQUOR DRAWN
Regulations Would Limit
Manufacturers to Sale of
Their Own Products.
CHURCH PROTEST FILED
Several Denominations OBJ
ject to Elimination Of
Wholesale Dealers.
BEER QUESTION ALSO UP
Administration to Rule on
Transshipments Of Rum in
Foreign Trade.
BEER QUESTION ALSO UP

WAsHINGroN March 6.--Regalarions
further restricting the distribution OF
nquornow confined to manufacturers and
wholesale druggsts-have been drawn
up ond await the approval OF the new
Administration.
The regulations as drafted by prohibit
tion officials would limit manufacturers
to the sale of their own products and
forbid them to dispose OF other nanufac-
lures containing alcohol. Such step. In
Tie opinion Of prohibition officials. would
restrict greatly the sale OF intoxicants,
and, by cutting OFF the slight latitude
now allowed manufacturers. coupled with
the elimination OF the wholesale liquor
dealer, practically would limit the distr!-
button Of liquor To wholesale druggists
Protests against the total elimination
OF the wholesale liquor Dealers however
have been received by the Treasury from
representatives Of the Catholic. Episcopal
and Lutheran denominations. These de-
nominations have been accustomed
spokesmen for the churchnen have ex-
planned. to purchase the wine used for
sacramental purposes from certain deal
ers who provided them with wine of
standard quality.
With the elimination Of the dealers
churchmen declared their source of sup
ply has been cut off AS a remedy the
prohibition authorities have been asked
to permit reputable dealers who nave
been IN business more than three years
to continue the distribution or sacra-
mental wines as an exception to the gem
eral regulations now in force. Early this
week a hearing on the matter Is to be
held by the Internal Revenue Bureau.
Disposition Of the question OF whether
beer may be prescribed for medicinal pur-
roses by physicians. prohibition officials
said. also will come up for early consid-
Grafton BY the new Administration. An
opinion is understood to have been pre-
rared for the Treasury by the Department
OF Justice which would permit the use OF
malt liquors for medical purposes slnll-
itrly with wine or vinous liquors. as con-
,rasted with the restrictions OF the prohi-
bition act on whiskey or sp!rituous
liquors.
Use Of beer Is opposed. however, by the
prohibition enforcement authorities. wnc
maintain that by permitting Its manufac-
tare for medical purposes the already
perplexing problem of handling the brew
cries would be made more dif1lcuil
The attitude of the new Admlnistra-
ton toward the breweries IS awaited
with interest by the present enforce
rnent officials in view of the steady
carapaign Commissioner Kramer has
been waging IN various sections OF the
country against the manufacture or beer
containing more than the legal amount
OF alcohol and the numerous seizures OF
nroperty which have been made by the
Government In the last few months.
Another question for the new heads OF
the department to decide Is the matter
OF transshipment OF liquor via this coun-
try when shipped from one foreign coun-
try 10 another. On the protest OF the
British Embassy the opinion rendered by
the Department of Justice holding trans
shipments of liquor Illegal and vessels
touching at American ports with liquor
aboard to be yiolators of the prohibition
laws has been returned for review
Meanwhile both questions remain in
status quo.
In connection with the shipping angle
70 the prohibition question some prohibi-
ton officials have suggested the possi-
pility Of a new policy regarding liquor
on American ships Under the present
law as defined by the Department of
Justice prohibition follows American
ships beyond the three mile limit and the
sale OF intoxicants on them is prohibited.
Strong protest against this interpreta-
ton, however, has been made by ship
ping interests and Chairman Benson OF
the Shipping Board has informed the
House that such a policy Is Injurious to
the American merchant marine. For
these reasons, officials asserted, the new
Administration will probably give care
ful consideration 10 the matter of di-
vorcing liquor from ships.