The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-08-12
Flood of Liquor P0urS From
HUGE Leaks i'm Prohibition Dam


reasonable growth of businesses
and trades that need alcohol for le-
climate purposes.
Witness how some alcohol manu-
featuring stocks have sky-rocketed
on the stock exchanges; note also
the increased imports of sugar for
alcohol factories.
Market on Increase
Investment bankers, in advertis-
ing an issue of securities of an in
dustrial alcohol company, included
in.their prospectus the following:
Commercial alcohol plays vital
part as solvent or base in in
dustrial alchemy, and likewise in
the manufacture of dyes, glass,
ink, drugs, paint, perfumes, films,
and hundreds Of other essential
products, the demand for which
constantly is increasing.
Such is the background of the
steadily expanding market for the
commercial alcohol industry,
which in the United States has
grown from an annual production
Of 100000 gallons in 1906 to more
than 100000 gallons in 1928.
Would it be unfair to the legiti-
mate alcohol companies, eager to
keep a legitimate business, to re-
strict the amount they can manu-
facture to some figure reasonably
near the actual needs of the coun-
try?
In my judgment, one of the most
important steps to stop the largest
source Of liquor supply in the coun-
try today is for the commerce de-
partment or some other disinter-
ested agency to find out how much
alcohol readily is needed to meet
actual industrial demands, and then
limit the issuance of permit priv
leges to figures reasonably near such
needs.
To deliberately grant so many
privileges where liquor can flow in
unlimited amounts just means in
creaSing proportionately the number
Of inspectors to watch how the
privileges are used. But no such
increases in the inspectors forces
have been made. 1t would have
been simpler to have withheld these
grants.
Tracing Is Hopeless
To trace leaks has become we'll
nigh hopeless. The governments
policy has been like pouring BIB
shot on the floor with one hand and
trying to pick it up with the other.
I'm not inferring that all per-
mitteeS are dishonest. Far from it..
But the honest ones are put at dis
advantage by the weakened policy
Of too easy grant of permits. They
should not be subjected to the COM
petition of "fly-by might" concerns.
There is every economic reason
that old firms with established rep
utation will use government priv
ileges most fairly. They should be
given first chance. Allowing newly
organized firms to have these val
liable permit rights should be done
very infrequently. Some lawyers in
the treasury department have JUS
titled their "yes-yes" policy by say
ing that the prohibition law gives
the commissioner no power to say
mo" to applicants for permit priv
ileges unless they are found to be
actually convicted law breakers. I
do not so construe the law.
The only way any law can be
made certain is to have the courts
speak on it. 1 have urged, literally
begged, prohibition officials yearly
since 1922 to refuse applications and
let the applicants sue. have looked
with eagernesS to the chance thus
to clarity the limits of discretionary
powers of the treasury department
in such matters. But the prohi-
btion Office has said mo" so seldom
that only one case raising the ques-
ton has reached the supreme court
of the United States in the whole
ten years of enforcement.
1t was the case of the Making
Products Company, 271 U. S. 479,
where the court observed, Here
plainly the refusal Of the permit in
volved no error of law"
Easy to Obtain Liquor
What I'm emphasizing is that this
too liberal grant of special permits
has created a big source of liquor
supply in the United States today.
1t is easy to obtain liquor now.
The public believes that enforce
ment has broken down. The con-
ditions might be quite different if
a sturdy policy of restriction of spe-
cial permits had been maintained
steadily from the first.
Permits no longer are issued in
Washington, but the formulate for
these specially denatured alcohol
privileges are subject to approval
at Washington. In the reorganiza-
zion of the last year, and since
civil service ratings have been re-
quired, some courageous administra-
tors have been wrestling valiantly
with the permit situation in their
respective districts.
Their task is no easy one, for al
though they may say mo" to the
loose issuance of a new permit, most
of them took charge Of districts
where far too many permits already
we're in existence.
It is much harder job under the
law to revoke a privilege once given,
upon which the citizen may be able
to show large outlay, than it is
to prevent his obtaining government
sanction to handle alcohol in the
beginning.
One Leak Plugged
-. II