The Western news. [volume] (Libby, Mont.) 1933-current, 1938-03-17
Liquor Profits From Stote Stores
Declining; Are Expected To Be Still Less

That profits from the liquor
monopoly in Montana are declining
and will probably continue to de-
cline is a statement made by the
State Taxpayers Assn, in the last
issue of the Montana Taxpayer The
state liquor business is discussed as
follows.
In the calendar year of 1887 the
following amounts of revenue were
distributes by the state treasurer
from sources indicated:
Liquor Profits ...............S1 ,405, 900
Excise Tax ..................,..-..... 375, 425
Liquor Licenses ................. 245, $50
Beer Licenses and Taxes. 554, 844
Total Distributed ......$2, $50, 7l9
Of this total $2,010,41l went into
the general fund, public welfare
fund, and relief fund, to cover the
S2,001, 900 Legislative appropriation
to the Public Welfare Department
for administration, old-age assist
ance. needy blind, dependent chill
dren aid general relief; $4,000 was
inpounded III help pay off the state
fund.dg bonds $353,333 for water
censer atlon and the. balance for
publ schools, teachers retirement
and temperance.
in the past year the liquor board
handled $426,3 1888 more liquor than
in the previous year at $15,8 more
expense with $l52.301 more net in
come and collected S375, 425 excise
tax and SEAS, 400 liquor licenses, The
liquor board also handled the beer
license and tax business which was
transferred by the legislature from
the state board of equalization.
Economies Effected
The $4,000 additional business
was handled with $4,000 less freight
and drayage expense than in the
previous yes, 1900 less for en-
forcement in spite of the addition
of the beer department, $4,000 less
rent, $1,000 less postage and other
savings. Increased salaries were
due almost entirely to the increased
volume of business handled by small
store vendors on commission basis.
A readjustment of guaranteed salar-
les and commission will probably re-
suit in a decreased amount paid
in 1888.
The administrator keeps care
full check on the relations between
net profits and sales in each of
the ITS stores When profits drop
considerably below the average of
rs per cent adjustments are made.
Butte, Great Falls, Billings Libby,
Bozeman, Deer Lodge, Kalispell,
Anaconda, Lewistown, Big Timber,
Hamilton, Forsyth, Red Lodge, Chir
nook, Shelby. Dillon, Conrad. Har-
din, HarloWtoH, Roundup, Poison,
Gardiner, West Yellowstone, Bolton,
Belt, Whitefish, Eureka, Belgrade,
Twin Bridges, Darby, Harlem, Rom
an, Whitehall, Kelvin, Dutton, Walk
erville, Basin, Hobson, and Bridger
all showed increased amounts and
per cents of net profits as compared
with 1886.
Profits Declining
Indications are that the peak of
profits in the state liquor monopoly
have been passd. Liquor sales like
income taxes reflect strongly bust
ness conditions. Comparing 1886
with 1887 month by month shows
that liquor profits are sharply re-
ceding and that 1888 profits and
hence revenue for the various funds
will be much less than in 1887. Prior
to the enactment of the retail liquor
law profits of the state monopoly in
January. 1887. were rs per cent
higher than in January, 1896; Feb
ruary 1887, 27 per cent higher than
the same month in the preceding
year; and in March, 40 per cent
higher In March and April when
the novelty of buying drink legal
ly over the bar was new state liquor
profits were 40 and 80 per cent, re-
spectively, higher than in March
and April, 1886. But as the novelty
wore off and business conditions de-
clined, liquor profits for May, June
and July were only 10, II and is
per cent above corresponding months
in 1896.
Since July, 1887, profits have ac-
tually been from to 10 per cent
less every month than they were
in the previous month. For the first
seven months of 1887 liquor profits
were rs per cent higher than in 1896,
while for the last five months the
profits were per cent below 1886
1888 is proving even less profitable
for in January gross sales dropped