Montana labor news., 1938-09-15
REFERENDUM NO.
FORTY
A VOTERS CATECHIsM

Forty?
A.-Referendum Number Forty is
a measure passed by the 1897 SEES
| sion of the Montana legislature
legalizing the sale of liquor by the
drink.
Odd Referendum Number For
| ty create a new condition in this
respect?
Alt did not; except to regulate
and license establishments which
were selling liquor by the drink.
Prior to passage of this law there
were approximately l,700 firms and
individuals paying $25 for a federal
liquor stamp. These firms and in
dividuals paid nothing in the way
of license fees to the state, city or
county. Since enactment of this
law there are $40 retail establish
ments (about half that operated
under a bootleg SYSTEM paying a
fee to the state from 5000 to $500 per
annum, the fees based IN population
ratio; cities and counties may levy
a license up to fifty per cent OF the
state license. For eight months of
1897 these licenses to the state to-
tailed $245, 45Q and for the first six
months of 1888 total $279, 500. For
the same period of time the excise
tax of so cents a gallon or whiskey
which is a part of Referendum Num-
Der Forty has turned into the state
general fund an additional $426, $685.
As; a grand total of $685., 918.45 de-
rived from Referendum Number
Forty in IA months time.
Q.-What state department bene-
fits from this revenue?
A.-The excise tax goes into the
state general fund to be appropri-
ated to many departments. The IL
cense fees are specifically allocated
equally to the COMMON SCHOOL
FUND and SOCIAL SECURITY. To
date each of these has received
slightly in excess of $685. 900 from
the liquor licenses issued under the
powers of Referendum Number
Forty.
OFF Referendum Number Forty
is defeated what will be the general
effect2
Alt will mean that the sale of
liquor by the drink will be restored
to the unlicensed, unregulated boot
logger, and the revenues as here re-
corded will not be received by the
state. 1t would mean that the next
Legislature would probably be re-
quired to impose a tax on a poor
mans bread to replace this revenue
derived from luxury.
Q.-Does Referendum Number
Forty provide local option?
Ayes. Counties opposed to the
sale Of liquor by the drink may
petition once in two years for a
local option vote.
Q.-What are the regulations set
forth in Referendum Number Forty?
Ain addition to the payment Of
a license fee to the state, the city
or the county, licensed liquor dealers
must purchase their liquors from
the state of Montana, at the same
price paid by the individual con-
sumner.
1t sets up prohibitions and penal
ties regarding the sale of liquor to
minors, interdicted persons and
specifies the days and hours on
which liquor may be sold.
Q.-Does Referendum Number
Forty change the state liquor store
system?
A-The state liquor store system
is in no way affected, except that il
would lose the business of the Ii
censed liquor dealer if Referendum
Number Forty is defeated. Under
this law the $40 licensed dealers
MUST PURCHASE from the state
Q.-Would employment be affect
ed?
Ayes. Six thousand Montana
people are directly employed in the
retail liquor industry, with al addi-
tional fifteen hundred indirectly de-
pendent on it; an annual payroll Of
over $7,500,0OO.
Q.-Would rental values be af-
fected?
Ayes, considerably. Retail
liquor establishments usually pay &
higher rent than other classes Of
business. The $40 licensed liquor
= dealers are paying an annual rent
bill of around $1,750,000.