The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-11-30
SIGNIFICANCE
SEEN IN j. 5.
LIQUOR PLANS
Administrations Hope Is
That BOotIeggerS Can't
Compete.
CANADA EYES MARKET
DiStiIIerS Will Abide by
Code, Is. Official
Belief.
BY WALKER STONE
Times Special Writer.

" h0IlllNAI LIN ANOfs w. -pEi4AlA
the scenes glinpses Of the admins
tration's post-repeal liquor control
program disclose unsupported sig
nificance in some Of its provisions.
The two most potent backstage
operators are Raymond B. Fosdick,
co-author OF the famous Rookie
Teller liquor report, and Rexford
TugWell, assistant secretary Of ag-
riculture.
Mr.. FoSdick is trying to see to it
that the Rockefeller study shall not
have been made in vain. 1t was
partially to make possible applica-
ton Of the guiding principle in this
study abolition Of private profit in
the liquor business that a provision
was written into the liquor code Civ
ing the federal alcohol control ad-
ministration discretionary power to
regulate prices.
Another purpose of this provision
is to keep prices low enough to
compete with bOotleggers, in line
with another conclusion Of the
Rockefeller report that the imme-
date pOst-repeal aim should be the
abolition of laWleSsness, even if it
has to be accomplished by a tenn
porary sacrifice Of temperance.
Brewers Give Consent
Mr.. Tugwell is using the liquor
code to establish a precedent for
the pure food and drug bill that he
will submit to the next congress.
The codes contain provisions giving
the alcohol control board almost
blanket authority to prescribe regu-
lations as to the size of containers
and the information that must be
printed on the label describing the
contents. The diStillers consented
to these provisions and it is under
stood the brewers will do likewise.
The rectlfierS, importers and whole
salers have not indicated what will
be their attitude.
Apparently Mr.. Tugwell would be
pleased to have at least one of these
groups oppose the pure food proyi-
slOnS, since it is assumed that the
administration would not hesitate
to impose them arbitrarily. Such
arbitrary action could then be used
as an example of what the admins
tratiOn might do should food and
drug manufacturers continue their
present opposition to the Tugwell
bill.
In the Still-unsigned marketing
agreement for the distillerS. the ag-
ricultural adjustment administra-
ton has two thorny problems. The
provision that all beverage spirits
must be distilled from homegrown
cereal grains is opposed by state de-
partment officials. who interceded
at the beheSt Of Canada. They
argue that this years rye crop in
the United States was a failure. and
that Canada ought to have a chance
to sell part of its bumper crop of
rye to American diStillers. AAA Of
ficials say the situation in the corn
belt states is such that this provi-
sion can not De nOOlIleQ.
Use American Grain
Manufacturers of black-Strap mo-
lasses. produced from sugar cane
grown in Louisiana. Porto Rico and
Cuba, are threatening. if the cereal
grain provision remains intact, to
challenge the validity of the agree
ment in the courts. Alcohol can be
manufactured from molaSSes at
about one-third of the cost of grain
alcohol. At the instance of AAA
officials, the leading Old-line diStil-
lerS have announced that regardless
of which the agreement provides,
they Will use nothing except Ameri-
can grain.
AS A gesture to the administra-
ton, the diSitllerS say that repeal of
the eighteenth amendment carried
with it an implied promise that
American farmers would find a new
market for their grains and more
over that grain is the proper in
gredient for high-quahty beverage
spirits.
All diStiuers, it is believed. will
abide by the distillers' code, although
many of its provisions are distaSte-
full TO them. A majOrity, however.
may refuse to sign the code unless
they are granted two reservations
one expressing in writing President
ROoSevelt's announcement that the
code is TO be effective only until the
time congress acts on liquor legis-
lation, and the other reserving TO
signerS of the code the right to test
ruling in the courts.