Evening star., 1944-03-18
| Plan Sought 10 Raise
u. 5. Liquor Supply 10
|Fiqht Black Market
By the Associated Press.

By the Associated Press.
High Government officials are
searching for q way to replenish
dwindling liquor stocks in order to
smash whisky black market opera
tions.
That became known last night
after industry and Government ON
cials held closed conference with
Secretary Of the Treasury Morgen.
thau and Chairman McCarran OF a
Senate Judiciary Subcommittee
investigating the liquor shortage.
1t was explained that the aim was to
prevent any possible return of pro-
hibition, which Mr.. Morgenthau
said might spring from liquor black
markets.
What form the liquor increase
might take has not been deter
mined, but it was learned at least
half a dozen proposals are being
lstudied.
One would authorize a holiday in
the wartime ban on distillinQ to
permit diversion Of industrial alco-
hol production to beverage making.
Often suggested by the industry,
this plan has been opposed by the
War Production Board and some
other Government agencies which
fear 1t would interfere with the
synthetic rubber program, prime
user of alcohol.
WPB Gives No Hint of Retreat.
There Is no indication that WPB
will retreat from its stand unless it
is convinced current production
levels can be maintained, possibly
through development Of a synthetic
alcohol.
Distillers insist the liquor black
market could be controlled by re-
lease Of $4,000, 900 gallons of neutral
spirits for blending with present
whisky stocks. That probably would
mean about a 30-day holiday"
Mr.. Mongenthau told those at
yesterdays conference fye-
month campaign by Treasury en-
forcement officers has broken" the
liquor black market at distilIer and
wholesale levels.
Mr.. Mongenthau, in a statement.
declared, I'VE are going to And =
solution" to Illicit operations among
retailers.
Lack Of Government Jurisdiction
over retailers was cited at yester.
days conference and suggestions
were made for curbing retail black
markets, but their nature was not
made public.
THE Treasury has a 5000 600 600
tax stake In the liquor industry" the
Secretary said, land for that reason
II for no other the Senator (McCar-
RAM and ! are going to stay with
this problem until q solution has
been found"
Would Bar Prohibition.
| Declaring that he witnessed the
tag end of prohibition when he first
entered the Treasury, Mr.. Morgen-
thau said, Il had a chance to see
what thing like prohibition does to
the country, and as citizen and as
q Government official am going to
do everything that I can to keep 1t
from happening again."
Senator McCarran, an advocate
OF q holiday in the ban on LIQUOR
making. said q three-week whisky
producing period recently granted
Canadian distillers relieved the
(Canadian) situation immensely"
and said great volume of boarded
liquor would be released to the pub
lie by similar action In this coun-
TRY.
In New York, the State LIQUOR
AUTHORITY declared the liquor short
age was bringing back evils Of the
prohibitin era and urged q tempo-
rary lifting of the Government ban
on production of liquor for civilian
consumption.
In letter to Senator McCarran.
the authority said, 1.-THE insufficient
supply Of liquor available to our
consuming public is the cause or
the occasion Of such evils as black
market operations, bootlegging, hi
jacking and the sale of spurious
and poisonous connections"