The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-03-08
RUM RUNNING
ON INCREASE,
HE ASSERTS i
Treasury Chief Would Extend
Customs Area, Seize Ships
Outside 12-MiIe Zone
International News Service


Asserting that liquor smuggling
has reached alarming proper
tions," Secretary of the Treasury
Morgenthau today urged the
House Ways and Means Commit
tee to approve drastic anti-smug
Cling legislation.
Secretary Morgenthau eStimat
ed that more than 2,250,00O gal
Ions of alcohol are being SNUG
gled into this country at a cost
in taxes and customs duties OF
$50, 190,933 annually.
The Treasury bill would per
NIT searching of rum boats on
the high seas, beyond the II
mile limit, subject to foreign
treaties, and authorizes the Pres
ident to extend the customs area
and provide drastic punishment
for owners of rum-smuggling
ships as we'll as members of the
crews. Secretary Morgenthau said
prior to prohibition this
country was not troubled much
with smuggling. During the IA
years of prohibition the bust
ness of smuggling liquor into
the United States from all
parts of the world developed
to very serious and troublesome
proportions.
CURB EXPECTED
"It was generally expected
that with the repeal of pro-
hibition liquor smuggling opera
'tiOnS and fraud on our reve-
nue. would be materially re-
duced. -
"For a time after repeal,
such proved to be the case,
but o m m ncing with the
spring of 1884. liquor smugglers
again appeared along our coast
and their operations have now
increased to alarming proper
tiOnS.
"ThuS in March, 1884, only
two smuggling vessels were OBJ
served off the coast, but by Feb
ruary of this year the number
had increased to %. Thirty-nine
foreign vessels are presently
known to the Coast Guards to
be regularly engaged in the IL
licit liquor traffic.
"InaSmuch as these vessels
are lowering beyond our Gus.
toms waters, they are not sub
ject to seizure under existing
laws, and hence they carry on
their smuggling operations al
most with IMMUNITY.
"AIcohOl makes up almost the
entire cargo of the rum ship. 1t
is produced abroad at from 20
to so cents a gallon and two
and a half gallons of whisky
can be made from a gallon of
alcohol. When this illicit liquor
is sold. the United States loses
not only customs duties but also
the internal revenue tax.
HARD TO STOP
"The practical difficulty in
stopping smuggling can hardly
be exaggerated.
"Our II, OOO-mile cOastline with
many opportunities it affords
for cOncealment, our compare
lively small Coast Guard of
about 10000 men, the seaman
ship and daring of the rum run
ner, and the highly efficient and
well financed smuggling organ
izatiOns that have grown up
since the advent of prohibition
are all prime factors in making
the smuggling problem one diff
ficult Of solution"
Secretary Morgenthau salt
larger anti-smuggling approprla
tons are needed but that enact
ment of more drastic legislation i
an absolute necessity.
Commander Parker, of the CoaS1
Guard, told the committee that
rum ships lowering off American
shores ARE almost eXclusivel,
under the British flag" One of the
principal objects of the legislation
is to induce other nations to enact
more drastic anti7smuggling laws
At present, the committee wa!
told, this country has no power
to punish Americans engaged II
smuggling liquor into Canada. In
formal assurances have been re
ceived by the Treasury that othel
foreign nations will amend theil
laws if the United States estab
fishes a precedent.