Evening star., 1933-11-24
brain TRUST" Hi.
IN LIQUOR CONTROL.
Declared to Have "Messed''
Regulation Problem and
Aided BootIegger.
BY DAVID LAWRENCE.

The brain trust" has succeeded in
messing up the whole liquor problem to
such an extent that about the only
people who are deriving any comfort out
of the situation are the bootleggers,
who, according to present Indications
will be able to ply their trade after re-
peal very much as heretofore, but with
less Federal enforcement to bother
them.
The President appointed an interde-
. partmental committee to work out a
temporary plan of liquor control. 1t
presented recommendations which would
have put into effect an emergency syS-
tenn that would have been accepted 100
per cent by all the interests involved. It
was a storgap until Congress and the
several States could act. 1t provided
for strict control of distribution through
licensing of the manufa cturers. but it
gave the latter voice in the policing
of their own industry.
Federal Corporation Project.
In the middle of the decisions came
put Uncle Sam in the liquor business.
1t was opposed as unlawful and uncon-
stitutional, but one of the members of
the brain trust" is said to have re-
marked that such obstacles were of no
consequence these days anyhow.
b The idea Of Federal corporation ap-
pealed to Mr.. Roosevelt, who encouraged
further study of it.
Then came a battle inside the ad-
ministration and finally the liquor
corporation idea was shelved But in
its place the brain trust" insisted on a !
compromise-there must be Federal
Government officials was offered to the I
liquor industry. with the request that |
the manufacturers agree to such con-
troll voluntarily or the Federal corpora
tion plan would be pushed at the jan
uary session of Congress.
Fear General Control.
The whisky manufacturers, who had
hooked forward after more than a
decade Of prohibition to an opportunity |
to build up their business once more,
saw Government control and regulation /,
on the one hand or chaotic conditions !
on the other. Many of them said today |
they would not sign a code placing
themselves under governmental juris-
diction and would prefer to await legis-
lation by Congress. For they argued,
If 1t is constitutional for a Government !
board to take over the control of liquor |
today it is equally logical that steel or i
coal or food could also be put under |
complete and comprehensive Govern |
ment control
Should there be no acceptance Of a !
code, the President would have the
right under the national industrial re-
covery act to require licenses. but It is |
doubtful whether, in the absence Of !
voluntary assent by the industry, the |
Government could impose board Of |
Government ohicials to take charge of |
the industry.
Immediate Problem.
But the immediate problem is: What |
IS going to happen after December S? |
The Federal Government had hoped for |
the cooperation Of the distillers, so
that a large volume Of taxes would !
flow into the Treasury Faced with |
demoraf1zatfon OF tlrer industry by the
Government, there is no such readiness |
now to cooperate. The whole thing is |
pretty complicated today and while |
code hearings are to be held the re- |
are that the President himself win have |
to straighten it all out
What has come as complete sur
prise is the way the Federal Govern |
ment is insisting on a control OF the |
liquor problem Notwithstanding the |
fact that the big argument used to |
obtain repeal Of the eighteenth amend |
ment was the cry Of "back-to-the- |
States" Federal prohibition was de- |
nounced in the Democratic National |
Convention where plan similar to
that of the Republican convention |
saloon was rejected by an overwhelm- |
ing vote.
Drys Declared Happy.
The drys are happier over the situa- /
for a year. For Federal control Is what !
they have always wanted, believing the |
eighteenth amendment was never given |
a fair trial and that with proper sup
port at Washington true temperance
could be achieved. i
What Is giving real concern Is the
probability that II restrictions on dis
tribution are placed on the liquor in |
dustry the unlawful distributors who /
are we'll entrenched anyhow will get !
considerable business in both wet and
dry States.
AS for revenues. the Federal Govern
-ment stands to lose q great deal of
tax money unless 1T finds = way to !
compete with the bootleggers for such !
consumption of alcoholic beverages as
has been carried on during the last
several years despite prohibitory laws.
The problem of working out salts
factory relations between the liquor in
dustry and the Government 50 that
after December there will be adher-
ence to some uniform plan for a
three-month period or at least until the
States can have their say, looms Is
one Of the most tangled of all the
projects the new deal has encountered.
(C0pyrtSht 1Q32l