The Washington herald., 1921-01-18
ENTERS ACTION
To FREE LIQUOR
STORED in BOND
California Businessman
Applies for Mandamus to
Release His Liquor.
BY FREDERIC WILLIAM VILE

BY FREDERIC WILLIAM VILE
Proceedings initiated here late
yesterday are designed, IL success
fully prosecuted in the United States
Supreme Court. to withdraw for
personal consumption by owners
millions of gallons OF whisky now
stored in distillery warehouses. >
Action was begun on behalf of
J. ]. Podesta, a wealthy San Diego.
Cal, business man, after his counsel,
w. Jefferson Davis, of that city,
was denied by Prohibition Commits
sioner John F. Kramer in person
a permit to withdraw a single bar
rel of whiskey owned by tae Cali
fornian and lodged in a kentucky
warehouse.
Raises Legal Points.
The Podesta proceedings seek to
establish the right of an owner of
liquor. legally acquired before the
Nolstead act became effective, but
whose precious wares are in distil-
lery warehouses, to take them out
for personal use. The Federal gov
ernment is to be mandamused to
that end. Podesta desires to have
the extraction of wet goods from
distiIlery warehouses legalized, just
as it now is permissible to take
legally acquired liquor from safe
deposit vaults.
Mandamus action will be brought
either in the United States district
court of Maryland or Kentucky. 1t
will aim to compel the prohibition
commis ssioner to issue such permits
as Mr.. Kramer today withheld. The
demand will be based on the broad
ground that rejection amounts to
government confiscation Of priva
property and on the specific grouiE.
that while the Volstead act clearly
intends to prohibit the manufacture
and sale of intoxicating liquors for
drink. it was not intended to pre-
vent consumption by owners of
goods properly. obtained prior to
the law.
Liquor stores Affected.
The Internal Revenue Bureau
last night unoficially estimated
that about 20 per cent of liquor in
distillery warehouses is potentially
affected by the POdesta suit The
remaining 80 per cent, it seems, is
the property of distillers or whole
salers unable to dispose of it be-
fore January 16. 1920.
The prohibition commissioner $
cold shoulder to Podesta's counsel
was the final step necessary to com
plete the record for mandamus
suit Previously the Californian
applied to Prohibition Agent Kriete,
of Los Angeles. for his single bar
relied permit. That application was
referred to State Prohibition Di-
rector Yellowley, of California, who,
upon instructions from Washing
ton. turned it down. Mr.. Kramer
jumped on it yesterday, and then
the stage was set for the legal
drama on which Podesta hopes to
ring down a triumphant curtain be-
for the supreme tribunal of the
land.
Attorney Davis states that al
though proceedings are taken in
Podesta's name. the litigant is one
of group of California and Chica
legal owners of liquor locked up in
distill"ry warehouses. For on"
reason or another. they were un-
able to place it in their private
cellars before the shadow Of Vol
steadism fell across the country
One Chicago lawyer. and perhaps
others, will be associated with Davis
in the legal battle now to be waged
for release of the vast store of
whiskey. tightly withheld by an
unrelenting government under rul-
ings by the prohibition commits
sioner.
1t is contended. the best means
of enforcing prohibition is to au-
thorize withdrawal of privately
owned liquor in distillery ware.
houses, thus relieving the govern,
ment of the burden of custody The
tax payable on these goods, it is
estimated. would amount approx,
mately to $36O.OOO.OOO, the interest
on which would be three times as
much as the present appropriation
fn