Evening star., 1933-10-26
After Repeal What?
Merits of State Monopoly Plan and License Plan
Discussed by Rockefeller Study of Proposals
to Control Liquor Traffic.
This is the thirteenth of q series of

This is the thirteenth OF q series OF
articles appearing in The Star under
the title, AFTER Repeal-What?"
The article below presents a portion
of the study OF liquor control spo"-
sored BY John D. Rockefeller, n,
this portion comparing the merits OF
the license system and the State
monopoly system.
The test Of all plans Is In their
practical operation. 1t is rot possible
to compare American experience under
a license system system With experience sa,,sa under a
American State has ever operated un-
der the latter plan.
Experience abroad, though SuggeS-
tive, Is, because OF marked dlf1erenceS
in social conditions, far from conclu-
Sive. Perhaps the most nearly COM
parable is the Canadian experience, un-
der which in eight of the nine prov
inces, both prohibition and license have
been abandoned in favor Of the State
monopoly system. Our own careful in
vestigationS in Canada indicate that
the systems are working with reason
able success. Although the Canadians
have by no means solved all the diff
culties, they are making distinct and
intelligent progress. We found in
Canada widespread approval of the
underlying idea of State monopoly.
Few desire to return to the license
system.
Plans COntrasted.
Let us examine more specifically the
inherent points of strength and weak
ness in the public monopoly and pri-
vate license plans in dealing with such
cole rti lot
ing, price control, character OF liquor
sales shops, temperance education and
liability to graft and corruption.
1t should be observed, first OF all,
that the objective is the same under
both plans, namely, to place the sale of
liquor under a series of restrictions de-
viSed to curtail excessive consumption.
The only difference lies in the method
of achieving this object. The licensing
system endeavors to establish these
controls through negative rules. regula.
tions, conditions and taxes, imposed
from without, upon private enterprise,
which necessarily is conducted for per-
sonal profit The State authority plan
endeavors to impose these controls
through positive management from
within a public enterprise conducted
for the benefit Of society.
Sales Stimulation.
In what way do these differences In
method of control affect the problem OF
sales stimulation? The answer is OBJ
vious Under a State monopoly system,
the liquor would be sold directly by the
State through chain of stores, the
profits turned into the State treasury,
and that would be the end of it. No
individual connected with the retail
sale would gain one penny by reason OF
his sales, nor would his employment be
imperied if he failed to show good
sales returns, as might be the case in
private trade.
In harmony with the underlying
principal of the authority, the salaried
employees waiting on the customers IN
the various State stores would be under
strict supervision not only to see that
there was no encouragement OF the sale
of liquor but to make sure that no beV-
erages were sold in violation of the let
ter and spirit of the regulations.
Under the license system. on the
other hand, competing private dealers
are under constant temptation to build
up their sales and profits. The issu-
ance of liquor licenses to private dealers
pre-supposes the right to make living
by the sale of liquor. Since his llveli-
hood is at stake, the private seller al
ways has been ard always will be inter-
ested in sales, and in nothing but sales.
Price Control.
The retail price level OF alcoholic
beverages not only determines profits
but also has a direct bearing on the
amount of consumption and on the
problem of the bootlegger The pros
pective consumer desires a low price
The producer also wishes to set COM
paratively low prices to attract trade.
The reinforcement officer is con-