Evening star., 1934-12-05
WET YEAR FAILS
TO HALT BOOTLEG
Illicit Rum Still a Menace
After IL Months of
Repeal.

BY the Associated Press.
On repeals first anniversary today
the bootlegger remains such menace
to Government revenues and the legal
trade that Secretary of the Treasury
Morgenthau is reported to be pre-
pairing a radio appeal to consumers
to buy only legitimate stuff.
Strong demands that taxes be
slashed are being prepared for the
next Congress on the theory this
would hamper the bootlegger.
So far, Secretary Morgenthau has
preferred to give the legal campaign
against the illicit trade more of a
trial before urging lower taxes. Since
repeal became effective, December s.,
1888. Federal agents have seized TO-
947 stills, arrested 1922 persons and
convicted about 1900.
Doran Wants Drastic Rule.
DIR. James M Doran, head of the
Distilled Spirits Code Authority said
legal consumption of spirits has been
only about one-half of the more con-
servative estimates made one year ago.
He called for sitter law enforcement.
Government officials estimated the
people have drunk 100000 gallons of
distilled spirits and 35,000 600 barrels
of beer.
The Government, which levies 50
excise tax on each gallon of domestic
liquor, has fallen some Sl20,000,0O0
short of collecting what it expected
Besides the excise tax, imported
liquors are assessed S5 a gallon. Beer
Is taxed SIS barrel.
Up to November l, S364572 ,224 rolled
into Treasury money bins, of which
$35,107,0l9 represented imports.
A promise of better and cheaper
liquor in 1885 came from Joseph H.
Choate, jr. Federal Alcohol Control
Administrator. He said:
Sees Improvement in 1885.
"There will be a substantial i'm
provement in the liquor situation in
1895. After the holiday furry, manu-
facturers will be able to put out
greater quantities of straight aged
whisky each month. That will drive
prices down and improve the quality
OF blends"
A year which has seen night life
flower also has witnessed continuing
differences of opinion. While re-
pealists say the Nation took the cor
rect step a year ago, such prohibition
leaders as F. Scott Mcbride say re-
peal failed to remedy single liquor
evil"
Alcohol control officers said today
they believe fewer persons now buy
directly from bootleggers than in the
early days of the wet year, but that
the problem of counterfeit liquor in
stores and dispensaries still is serious.
Tax Reduction Urged.
The year has seen production of
legal liquor, which is estimated at
100 100000 gallons, outrun consump-
ton by wide margin.
Ammon Mcclellan, director Of the
Rectifers' Code Authority, today sug-
gested tax reduction as a means to
fight "the increased competition" of
racketeers.
Public ignorance of details OF the
liquor business has resulted in the
preparation of what officials call
rackets. This week Choate accused
some sellers of warehouse receipts
covering bonded rye and Bourbon
whisky with bilking the public. He
said the vendors of the securities
charged "exorbitant prices"
Recently the Government has re-
stricted the importation of distilled
spirits in bulk Oficials said some
~ tnl hn hn
bottling them in this country.
Discussing the quality of the liquor
sold, Administrator Choate declared
that gin available now seems to be
as good as any ever sold; that the
quality of blends is generally improv-
ing and that in the early part of
1888 larger amounts of straight
whisky, aged 6, 9 or u months, could
be released.
Gradual Improvement Seen.
1.-THE improvement in the whisky
situation will be gradual" he antici-
pated. You will see each month all
through next year greater quantities
Of aged whisky on the market"
General satisfaction with the de-
velopments of the past year was ex-
pressed by DR.. Doran. He added,
however, that low legal consumption
has accentuated the excess capacity
problem" The Federal Alcohol Con-
troll Administration. he said. had
checked what would have been a
dangerous excess production.
1T must be remembered" he con-
tinued, that year ago a great num-
ber Of people of the United States
felt that lot of quick money was
to be made in the distilled spirits
industry. Many of them have since
changed their opinion.
There is still room for substantial
improvement in governmental action
1o, 10 j1;t