The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-02
HARD HIT BY
TAX, TAVERNS
CUT WHISKY
Retailers, Driven Near Wall
by License Fees, Are
Forced to Cheat.

With Indiana attempting to en-
force provisions of the state liquor
law, cheating" by whisky sellers
in Indianapolis is spreading with
rapidity, a survey Of the situation
revealed today.
Throughout the city, many sellers
of retail liquor find themselves
against the wall" unable to make
their establishments show a profit.
Rather than sacrifice their invest
ments. they are taking chances on
violating the law and are already
beginning to cure" the whisky to
meet price competition.
The shadow of the drop in bust
ness and profits came several
months ago when saloon and tavern
keepers realized that they could not
meet the requirements of the new
license fees. Many of them, too,
are protesting about the high price
of beer and claim that their barrel
and half-barrel purchases will not
permit them to make money.
Competition Is Terrific
One indianapolis operator who
has been selling his whisky as
straight as it has been made, said
that the competition was so ter
rife that this. combined with the
high cost of the product and the
overhead has cost him money each
day. He terms his opening of the
tavern each day as one OF the
most" expensive operations.
Just turning the key in that lock
in the morning costs me more than
I can make in many hours, he de-
clared.
Many places in the city which are
offering cut rates on their whisky
also are offering cut rates" on The
content of the product. Many COM
plants have been heard where the
whisky is so mild that the customary
wash" is purely a waste OF the
water or the jigger Of beer that the
management offers
Alky Business Thriving
The alcohol business, under these
conditions, again is thriving in In
dianapolis. Many dealers in the
alcohol field have found fertile
sales locations in the city and towns
surrounding Indianapolis. Selling
their grain alcohol at prices which
would have been considered ridlcu-
lous in the pre-repeal days, the
bootleggers still are able to realize
a sizeable profit and their pur-
chasers put the figures down on the
black. instead Of the red, side OF
their accounts.
In addition to the oldfashioned
process of cutting" whisky 1t also
is reported that many saloon keep
ers. who are fighting the margin OF
overhead. are retaining bottles with
stamps and good labels and making
their own under the bar. Others
still are buying their stamps and
not making any effort to hide the
deception.
The third class is composed OF the
bartenders who leave enough OF the
original product in the bottle TO
build up their prof1t-making con-
coctions from that point.
Flare-Up Due Soon
Another f1are-up that soon Will
come before the courts is the states
drive against club" operators. Lee
Hotel. operator Of the Trees
Saturday night was visited by
excise cops who seized a bottle
of Gin and partly-flled bottles Of
whisky from visitors. He operates
the club on the basis Of 81 men,
bership fees which he has been set
ting aside for court contest OF the
excise police powers.
Saturday night the excise ofhcers
took the liquor from persons at the
club. If charges are filed, the oper-
ators of the club will test the SUIT:
Summed up, it appears that the
small operator is intent on making
money and will 60 to any means TO
collect a percentage on his invest
ment and that the state enforce
ment officers are in for summer
that will be hot in more ways than
one.