The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-06-26
STATELOSING
THOUSANDS IN
STAMP RACKET
Counterfeit Excise Labels
Offered to Druggists,
Is Report.
FRY GETS COMPLAINTS
Situation Said to Be Bad in
Calumet Area: By-0rlnk
Ruling Due.
BY JAMES DOSS
Times stan Writer

BY JAMES DOSS
Times stan Writer
Use Of counterfeit excise stamps.
reuse Of genuine stamps that should
have been mutilated and the dis
pensing with any kind Of stamps on
whisky are costing the state of IN
diana thousands OF dollars OF rev.
enues.
Sale OF cOunterfeits. II IS re-
ported. is growing. although Paul
Fry, state excise director. said yes
terday he had been unable TO verify
complaints by retail druggists that
they have been offered bogus stamps
and that other druggists are buying
them.
The writer knows Of two inst anceS
where stamps have been offered for
sale in sheets at ; cents \ stamp.
In neither case was purchase ad-
mitted.
Mr.. Fry said he has had reports
OF offers Of sale at from ) cents a
stamp to S1.75 a sheet. A sheet in
cludes So worth of stamps bearing
a face value of IS cents each.
Stamps Not MutiIated
Thus. a druggist with a desire to
cheat the excise law can save a
maximum OF 20 cents on each pint
sale.
Under the law. the excise stamp
on each pint of whisky or alcohol
Is supposed TO be scratched at the
time OF sale. This regulation fire.
quently is ignored, leaving each
dead soldier" with value of
- cents. quite aside from its old
bottle value.
Sale of whisky and alcohol with
out going through the formality of
attaching either a counterfeit. re-
used or genuine stamp is becoming
more general. investigation reveals.
Particularly is this true in the
northern part of the state.
Legitimate Dealers Hurt
An operator Of a Gary chain drug
store. which Obeying the state eX-
else law. told this writer that legiti-
mate liquor dealers have no chance
AZ all in the Calumet district be-
cause hardly anybody bothers about
the excise law"
~ConseauenJiy." ne pointed out.
we are undersold at least . cents
pint. and a quarter Is a lot of re-
duction on the cheaper grades OF
whisky blends. although It might not
make any difference to the pur-
chaser of higher priced whisky"
A glance around Gary bars and
LIQUOR stores will show that whisky
Is profusely displayed without
stamps.
Another way in which legitimate
LIQUOR dealers-dealerS who obey
the excise Iaw-are handicapped, is
through sale of the So-called Cuban
pints."
Cuban PintS" Again
The Cuban pint" is a small bot
re holding from an ounce and a
half TO two ounces OF liquor. The
state has ruled there Is no way the
state tax of > cents a pint can be
split. so the Cuban pintS" can
have no sale except through the
bOotlegger.
The Cuban pint" of whisky has
been sold in Indianapolis for some
time and this week. Cuban pint
of a popular brand of gin made It's
appearance.
Their sale IN the Calumet IS gen
ersl and no effort Is made TO hide
their display TO the public.
With dissatisfaction with the
HouOr laws general among legitimate
dealers the hotel men await a by
fhe-drink" sale ruling which Gov
ernor Paul V. McNutt has indicated
viii be forthcoming this week.
By-Drink Ruling Awaited
II generally is reported that the
attorney-generaIS Office will rule
this sort of whisky sale illegal and
bolstering the report is the grape
vine warning received yesterday by
bars and taproOmS. telling them TO
lay of.
sale "by-the-drink" has been
completely in the open in Indianap-
oils in the last few months. at prices
ranging from Is cents shot for
bootleg whisky TO . cents for blend
cd whisky.
Cocktail shakers rattle on de-
rsnd. with the fancier drinks
ANYTHING YOU want Offered al
from IS to 40 cents a copy.
Some Of the taproomS have in
vested in expensive equipment IN
the belief that the state will 'llber-
slize" the whisky sale laws.
Court Showdown Expected
This investment. it is reported
NAV lead 10 a showdown in the
courts. if an unfavorable blythe
drink" ruling Is issued.
Here's the general feeling among
dealers who are selling liquor by
the-drink
It's Just as legal 10 sell whisky
that WAYS as II Is 10 sell draught
beer. The state passed a law say
inc specifically that beer had 10 De
sold in bottles. Then II 'liberalized'
the law by ruling so draught beer
would be legal So II must be legal
10 sell 'draught whisky"