The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-08-12

Nor can the inspectors who plain
ly have run into a lie return and
charge the original pernittee "a"
with dereliction Of his duty or re-
woke his permit for sending. $4,000
gallons of "Carnation Perfume" to
this fake establishment. These fake
establishments, with set-up as
ostensible consignees, are what are
known as cover houses"
Would Stir Storms
In my legal opinion the regula-
tions issued by the treasury de-
partment could be so drawn as to
drive these cover houses" practi-
cally out of business. To do it
would, however, mean standing firm
against a tremendous lot of pound
ing from the organized drive of
thousands Of permittees with heavy
political influence. I know this, be-
cause repeatedly my office recon-
mended legal change in the regula-
tons.
I remember specially the fate of
our recommendations about two
years ago. They were we'll re-
ceived by DR.. Doran, commissioner,
and highly capable chemist, and
other treasury officials, and we all
practically agreed upon the details.
But our puny legal beginning of
improvement in the regulations were
exposed to the blighting political in
luence of the alcohol trade!
Resolutions against the proposed
changes, which I didn't know any
one but our two government de-
partments had seen, began to pour
in. Lobbyists came to my Office,
alleging that I was exerting a ma
lignant influence over the treasury
department! Drug associations, al
cohol lobbyists, the patent medi-
cine group, all appeared! Finally,
the regulations came out without the
proposed changes. The improve
ments had died a-borning!
Privilege Is Valuable
Every permittee, when he makes
application under the law, asks the
government for a privilege. It is a
valuable privilege. He expects to
make money out of it. To get that
privilege, he enters into a contract
with his government. In my judg-
ment the government has a perfect
right to require as a condition to
his receiving this valuable privilege
a considerable degree of diligence on
his part as to where and to whom
he will sell his products.
There is no reason why before
permittee "a" above mentioned
ships the $4,000 gallons of "Carna-
ton Perfume" with high alcohol
content to *" he should not by
contract agree to let the govern
ment into the secret of "X's" re-
quest for the consignment.
In an attempt to prevent the di-
version of alcohol, treasury regula-
tons prescribe that it be treated by
certain formulate of denaturants,
which are supposed to make it un-
drinkable. For some uses the alcohol
must be what is termed specially
denatured," and for other uses
completely denatured."
Little trouble comes from misuse
of the latter, which is either
nauseous or poisonous. Much of the
specially denatured" alcohol, how
ever, is susceptible to manipulation
whereby the maturing products may
be eliminated.
General Andrews Regime
Crooked permittees naturally pre-
fer the specially denatured'' type.
Great pressure is exerted on every
administrator to o. K. more and
more, ard weaker and weaker,
formulate for specially" denatured
alcohol. Such permit becomes an
open door by which the permittee
can enter field of operations en-
tirely outside the law.
The policy of handing out permit
/ p44NACSCS always 1ldS DS6n SuD-
! jected to so much political pressure
that it has been marked by vaciI-
lation and puerility. 1t is true that
while DR.. Orville Matthews was
Commissioner Haynes assistant he
said definitely mo" to the multiply
ing applications. But by the close
of General Andrews regime permits
and permittees had reached into
higher mathematics!
Athing little apprehended. but
which formed a serious source of
weakness in enforcement, was that
the amounts of alcohol that per-
mittees could handle monthly were
enlarged greatly, and in many in
stances made unlimited. Alcohol
manufacturing plants are given the
right to make unlimited quantities
of alcohol.
These plants are not bootleggiug
concerns by any means, but they
are making all the alcohol tbs
they can sell, and the amount that