Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-11-22
Propose Making
Corporation Booze
For Medicinal Use

"aSnlIStOII, ANON. 49,
that it has been unable effectively TO
regulate the distribution Of medini-
nal spirits, the treasury department
today announced that it would ask
Congress for legislation providing
for the organization under govern
ment auspices of privately financed
corporation which would buy all
privately owned stocks now IN ware
houses and distilleries and manu-
facture additional stocks OF liquor
as required for the trade.
The plan provides that this cor
poration would, under governmental
regulation distribute the medicinal
liquors direct to the retail druggists.
The government also would name
the initial board Of directors of the
corporation, audit its accounts, and
limit earnings to assure a reason
able cost of the liquors to the pub
lie. The proposed plan has been
given the approval of Secretary Mel
lon. and Assistant Secretary An
drews. in charge of prohibition en-
forcement.
The treasury department hopes TO
avoid the charge of putting the gov
eminent into the liquor business by
finding some way of accomplishing
the financing of the proposed cor
poration without direct government
funds, but the details of this scheme
have not as yet been made clear.
The initial sum involved would pc
very large. as the plan would call
for the running of distillery with
capacity of turning out at least D.
600 900 gallons of whiskey a year;
the maintenance of six or eight dis
tillery warehouses and the purchase
price of liquor now in private dis
tilleries and warehouses. estimated
at about 100000 gallons. Al pre-
vailing prices the purchase of that
entire stock would involve at least
from $4,000, 600 to 5000 100000.
The announcement came as
great surprise. as it had been IN
derstood that Secretary Mellon was
opposed to any steps which lnNoiV-
ed government purchase OF liquor
stocks. or in any way putting the
government into the whiskey bust
ness. Assistant Secretary Andrews,
however, has advocated direct gov
eminent purchase and distribution
of medicinal liquor, on previous oc-
casions.
There was talk heard that strong
opposition to the proposal would be
made by some of the groups on the
theory that any step which called
for manufacture and distribution of
LIQUOR under government auspices,
even for the medicinal trade, smack
ed too much of the Canadian sys-
tenn of government liquor regulation
and would be used as an opening
wedge by the vets in another drive
to win popularity for the ultimate
adoption of the Canadian system in
this country. The treasury's posi-
ton simply is that the proposal is
the most practical way to handle
the supply and distribution of me-
dicinal liquors under the terms of
the present prohibition law.
The treasury began its argument
in favor of the legislation by de-
claring that purely as a matter of
administrative efficiency. and with
out regard to the merits of the pro-
hibition law, we must ask Congress
to provide for the replenishment and
more effective control and distrihu-
ton of distilled spirits for medicinal
use" Existing supplies, it declared,
will last only five years and the new
whiskey must be aged.
Among other arguments advanced
by the treasury for it's plan are:
1T provides for the replenishment
of the supply of medicinal spirits
as required by law. without intro
ducing political or other considera-
tions into the granting of permits to
manufacture and without opening
those dangerous avenues for future
diversion. This will be done two
distilleries only, thus reduci, g SUI
pervision to a minimum
1T cripples the bootleg industry
by depriving it of the opportunity
to get pure whiskey as a flavor in
the manufacture of fake whiskey
and makes it a serious offense to
sell this fake whiskey under false