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The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, October 07, 1930, Image 2

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/Liquor Output Cut 60 Per Cent Since 1914 Says Prohibition Chief
BOOZE PRODUCTION
GALLONS
YEAR ENDING JUNE 30
Si
Enforcing Department Bases
Figures on Materials En-
, tering Into Brews
DIVERSION ALSO TRACED
Imports Smuggled in Deduced
From Government Reports
Received Under Treaty
Production of illegal liquors in
1930 equalled only about 40 per cent
of the total of legal production in
1914, which is considered the last
normal year of full production, ac
cording to an estimate made public
today by Amos W. Woodcock, director
of prohibition. Considered from the
basis of pure alcohol, this was but 35
per cent of the 1914 production.
The director estimates the total
production of liquors for the yea£
ended June 30, 1930, as 876,320,718
gallons, compared with 2,256,272,765
gallons in 1914.
The studies by which the estimates
were arrived at were made by E. A.
Grant and E. P. Sanford, of the di
vision of research and public infor
mation.
The statement starts with a re
capitulation of the possible sources of
iUegal liquor production, which, for
the m««** n g of distUled spirits, are:
Corn sugar, cane or beet sugar, corn
meal or other grains and molasses;
for the making of wine, wine grapes,
table grapes, raisins, fresh fruits and
berries; and for the making of home
brew, hops and malt.
To these sources should be added
diverted industrial alcohol renatured
and smuggled liquor.
Whether the toal amount of possi
ble production is the same as the
amount consumed, no one can tell.
The figures, however, are a fair indi
cation of consumption. The facts as
sembled are taken from reports of
the departments of commerce, agri
culture and census bureau, and spe
cial surveys made by investigators of
the departments of Justice and the
treasury.
Prohibition Bureau Estimate
The estimates of production by the
bureau are: DistUled spirits from
corn sugar, 45,900,000 proof gallons;
distUled spirits from cane or beet
sugar. 10,000.100; distilled spirits from
grains, 4.000,000: diverted industrial
alcohol 9,929,218; smuggled spirits,
3,557,500; total spirits, 73,386,718.
Wine made from grapes and raisins,
118,320,300 proof gallons; smuggled
vine, 155.900; total wine, 118,476,200.
Malt liquor, home brew, 683,032,000
gallons; malt liquor smuggled, 1,444,-
900; total malt liquors, 684,476,800.
All beverage liquor: Spirits, 73,-
386,718; wine, 118,476.200; beer, 684,-
447,800; total possible production,
876,320,718 gaUons.
Before Prohibition
The last year of normal full pro
duction of legal alcoholic beverages
was 1914. In 1914 there were with
drawn, tax paid, for consumption, ac
cording to the V. 8. statistical ab
stract, 1922, page 697: Distilled spir
its, 143,447,227 gallons; malt liquors,
2,056,407,108; wines, 52,418,430; total
of aU liquors, 2,246,272,765.
Much home-made wins was pro
duced in 1914, some home brew beer
and that there was illicit distilling in
that year is shown from the Internal
revenue reports of illicit stills and
liquors seized.
The comparison of possible produc
tion in 1930, with tax-paid withdraw
als in 1914, does not give a complete
picture of the amount of liquor con
sumed in 1914. For example, while
there were only 52,418,430 gallons of
wine withdrawn for the payment of
an estimate of the possible pro
duction of wine in 1914, based on the
grape crop of that year, shows that
it was possible to have made about
140,000,000 gallons of wine in that
year, and undoubtedly the additional
88,000,000 gallons was so made into
home-made wine.
Less Alcohol in Hootch
However, leaving out of consider
ation the fact that more liquor was
consumed in 1914 than the internal
revenue figures indicate, tbe bureau
estimate of possible production in
1930 shows that only about 40 per cent
as much liquor could nave been pro
duced in 1930 as was withdrawn, tax
paid, in 1914.
Reduced to absolute alcohol con
tent, the liquors withdrawn in 1914
contained 166,983.681 gallous of abso
lute acohol—theoretical 100 per cent
alcohol.
The possible production of beverage
liquor in 1930 contained 73,836,172
gallons of absolute aloohol. It is a
matter of common knowledge that
bootleg whiskey and home-made fer
mented liquors do not contain $s
much alcohol as the same legal com
modities. Consequently, on the basis
of pure alcohol only about 35 per oent
as much was probably produced for
illegal uses in 1930 as Was withdrawn,
tax-paid, in 1914.
Grape* Cine to Wine
How the estimates of 1930 produc
tion were reached is explained by the
statement. The production and im
portation of corn sugar furnished one
clue, the use of 534,000,000 pounds
being unaccounted for otherwise. The
amount of mash seized gave an idea
as to the amount of beet sugar, grain
and molasses used, indicating a pro
duction of 10,000,00ft' gallons of spirits
from beet sugar and 4,000,000 from
grain and molasses.
Diversion ox denatured alcohol for
renaturing indicates another source
of illegal liquor production, the state
ment says. In the lacquer-thinner
group. 3,000,000 gallons were diverted
last year, ethyl acetate diversion was
about 4,000,000, while perfumes and
toilet waters accounted tor diversion
* of another 4.000.000. The total di
version amounted to less than 5 per
cent of the Industrial alcohol produc
. ttion, however, says the statement.
* Wine production is estimated on the
'production of grapes. Wine grapes,
; which sell at about S4O a ton, are
supposed to have been produced to
*. 'the amount of 416,000 tenf; table
f grapes, which sell at about $l5O a tod
are estimated to have been produced
1 ■„ *'h. > ■'
sf'‘V*"- -V-
OUTOUK WAY
to the amount of 317,000 tons; fresh
raisin grapes, 238,000 tons; and
raisins on grape basis 780,000 tons, or
a total of 1,751,000 tons.
Deducting table grapes consumed as
food and dried raisins, there were
available about 800,000 tons of grapes
for wine purposes. One ton of grapes
will make about 150 gallons of wine,
or a total of about 120,000,000 gallons
of home made wine could have been
made from the grape crop during the
year ending June 30, 1930, not ac
counted for in legitimate industry.
Hops Reveal Beer Total
The amount of wine made from
small fruits and other sources is im
possible to trace, but is considered as
negligible.
The production of hops is the best
index as to the production of home
brew, as 98 per cent of the hop crop
finds its .way into the beer kettle,
either in the form of hops or hopped
malt extract, says the statement.
In the year ending June 30, 1930,
there were produced in the United
States, less imports and exports, and
for use in legal cereal beverages of
less than H of 1 per cent alcohol
content, and for medicinal purposes,
24,394,000 pounds of hops.
Brewers used about % of a pound
of hops to produce 30 gallons of beer.
Taking into consideration more
wasteful methods in home brewing,
the bureau has used as an index fiss
ure one pound of hops to 28 gallons
of beer, based on Inquiries directed
to home brew makers and producers
of hopped malt.
On this basis it would have been
possible to make 683,032,000 gallons
of beer in the year ending June
30. 1930.
The sources of smuggled liquor are
quite definitely known. By treaty
arrangement with foreign countries,
Information is available of clearances
oI ships oont&ining liquor probably
destined for this country. In addi
tion to this, United States officials
in foreign lands also furnish such in
formation.
Considerable Canadian liquor
shipped out of that country finds its
way back into Canada—to evade the
high Canadian excise tax. The same
is true of shipments from other near
by countries. The coast guard patrols
also turn back many cargoes.
COOPERATION AIDS
PREIENT TELLS
LABOR FEDEM
Absence of Conflict Between
Labor and Capital Noted
by Nation's Chief
Boston, Oct. 6.— (JP) —Optimism per
vaded two addresses today by Presl-1
dent Hoover, an optimism he drew
from nation-wide “team play" to al
leviate unemployment on the one hand
and from the assurance of peace for
the country on the other.
The annual conventions of the
American Federation of Labor and
the American Legion heard him.
At the Statler hotel this afternoon
he told the federation delegates in
dustrial stability had been increased
by national cooperation and the ab
sence of conflict between capital and
labor during the business depression.
While a "burden of unemployment"
still exists, Mr. Hoover said, the
undertakings agreed upon at the
white house conferences last Novem
ber with business, industrial and labor
leaders have been carried out in an
amazing degree.
"There are, of course, exceptions."
he continued, "but in the large sense
our great manufacturing companies,
the railways, utilities, and business
houses have been able to maintain
the established wages.
“Employers have spread their em
ployment systematically. For the
first time in more than a century of
these recurring depressions we have
been practically free of bitter indus
trial conflict. * * •
Team Ray Aids Effort
“Wb, have thus had nation-wide
oooperation and team play which
have greatly ameliorated the hard
ship of this depression. These meas
ures have served as a practical sys
tem of unemployment insurance.”
"We are justified in feeling that
something like s new and improved
tool has been added to the working
*
V,
Article No. 18
By WM. E. McKENWSy
(Secretary American Bridge League)
A few days ago, we explained the
opening leads against a no trump
declaration when partner had bid.
You will recall we said when holding
four of our partner’s suit to the ace,
king or queen, the fourth best should
be led. An example of that play is
given in the following hand.
NORTH
S—Q-7-5-2
WEST H—K-8 pact
c aia D-l 0-8-2 . ,
5—A-J-4 C—S—»3
H—Q-10-4 c ' B ' 4 H—l-5-3-
D—K-J-5* 2
3 0-0-7.
C—A-Q-3 6-4
SOUTH—DEALER C—k-9-
S—K-10-9-8-6 8-2
H—A-9-7-9 " »
0-A-9
C—lo-6 i
The Bidding
South, the dealer, holding two and
one-half high card tricks and a bid
dable spade suit, opens one spade.
West has the required strength for a
one no trump. North' passes, and al
though East’s hand holds a singleton
spade, it is worthless and he must
pass.
The Flay
If North were to open the queen of
spades, the top of his partner’s suit,
game could not be stopped. West,
the declarer,, would win the first
spade with the ace and then lead a
diamond. South would get in with
the ace of diamonds and win his king
of spades, but the declarer would
then have the spades stopped a sec
ond time with the jack. Declarer
would therefore make four club
kit for the solution of our future
problems,” the president said in ex
pressing gratification over the results
of his business and labor conferences
at the white house last November.
It was at these conferences that
Mr. Hoover set in motion efforts on a
nation-wide scale to mitigate the de
pression.
Declaring new inventions and dis
coveries had intensified many prob
lems in adjusting "technological un
employment," he said there was no
reason to believe tlje American eco
nomic system could not be revolved in
such fashion as to further increase
standards of living and thereby “con
tinue to absorb men who are dis
placed in the older industries."
The bituminous coal industry was
eited by the president as one of the
major industries affected by new dis
coveries and labor-saving devices.
As “one key" to a solution he ad
vocated reduction of what he termed
"destructive competition" in this in
dustry.
"In addition !o its other difficul
ties," he continued, "must be counted
the effect of the multitude of 6,000
independent mine owners among
7,000 mines, which has resulted in
destructive competition and final
breakdown of wages."
Wants Progress by Competition
"It certainly is not the purpose of
our competitive system," he said,
"that it should produce a competition
which destroys stability in an indus
try and reduces to poverty all those
within it. Its purpose is rather to
maintain that degree of competition
which Induces progress and protects
the consumer. If our regulatory laws
be at fault they should be revised."
Elaborating on the wage question.
Mr. Hoover said both the directors of
industry and labor leaders "have
made great grogress toward a new
and common ground in economic con
ceptions. which, I am confident, has
had a profound effect upon our eco
nomic progress during the last few
years."
‘That is the conception." he said,
"that industry must he constantly
renovated by scientific research and
Invention; that labor welcomes «i esc
labor-saving devices; that labor gives
THE BISMARCK TRIBUNE, TUESDAY, OCTOBER 7, 1930
BRIDGE
tricks, three diamond tricks and two
spade tricks, or nine in all.
The proper opening, as explained
when holding four of our partner’s
suit headed with the ace, king or
queen, is the fourth best. Therefore
North’s proper opening would be the
deuce of spades, South going up with
the king. Declarer would win with
the ace and then lead a small dia
mond, going up with the queen in
dummy. South would win with the
ace and return to ten of spades. If
West did not refuse to cover, South
would then lead the nine of spades,
which would force the jack from the
declarer and North would win with
the queen. North would then lead
the seven of spades, which South
wpuld overtake with the eight, cash
ing his good six of spades. He would
then return his fourth best heart, the
six spot, which North would win with
the king, North returning the eight
of hearts, which South would Win
with the ace.
Playing the hand with the fourth
best opening, North and South would
make four spade tricks, a diamond
trick and two heart tricks, or sever*
in all, defeating declarer’s contract
one trick. As you can readily see, the
difference between opening fourth
best of partner’s suit in this hand
and opening the top of your partner’s
suit, when holding four to ace, king
or queen of your partner’s suit, is
four tricks. If North held only three
spades to the queen, the proper
opening would be the There
would be no advantage in opening
low as the declarer could block the
suit off and then when North won
with his queen on the third lead of
spades, he would undoubtedly have
to switch to a club, which is his own
long suit.
(Copyright, 1930, NEA Service, Inc.)
its full and unrestricted effort to re
duce costs by use of these machines
and methods; that the savings from
these reduoed costs shall be shared
between labor, employer, and the con
sumer.
"It Is philosophy of mutual interest.
It is a practice of cooperation for an
advantage that is not only mutual
but universal.
"Labor gains either through in
crease of wage or reduction of cost
of living or shortened hours. Em
ployers gain through enlarged con
sumption, and a wider spread of dis
tribution of their products, consum
ers gain through lower cost of what
they buy. Indeed, mass production
must be accompanied by mass con
sumption through increased standards
of living."
Buch a system of industrial rela
tions, he added, is much better than
"doles of various kinds which limit
the independence of men."
Mr. Hoover said an increase of
$500,000,000 in the last eight months
of public and private construction
had helped take up the "slack of un
employment."
"Our freedom from strike and lock#
out," he added, "is well evidenced by
the statement of the department of
labor that, in the last depression,
there were more than 2,000 labor dis
putes. many of them of major char
acter and accompanied by great .pub
lic disorder, as compared with less
than 300 disputes in this period, and
these mostly of minor character. And
the great body of labor Itself de
serves much praise, for never was its
individual efficiency higher than
today."
NODAKS AWAIT RABBITS
Grand Forks, Oct. 6.—With nearly
7.000 fans from all over the state see
ing the third football contest at the
University of North Dakota, Interest
of grid fans now turns to the opening
of the conference games on the sched
ule which is set for the university
homecoming game October 18. Bt.
Mary’s of Winona, the Superior nor
mal school, and lastly Davis-Elkins
supplied the early-season competition
for the university.
By Williams
Labor Stands to Gain
IMPROVED mm
IN RETAIL FIELD;
PRODUCTION RISING
More Than Ordinary Fluctua-
tion in Individual Lines;
No General Up Trend
MONEY RATES ARE HELPFUL
Abundance to Borrow Will
Aid Real Trade; Brokers’
Loans Fall Strikingly
The final quarter of an unsettled
year begins with widespread and vig
orous commercial revival still de
ferred. although not without some in
dications of seasonal gain, according
to the weekly review of trade by R.
G. Dun and Company. The review
continues:
There is now, as might be expected
after rather a protracted period of
uncertainty, much sensitiveness to
the conflicting forces in operation,
and the extensive scope and diversity
of these factors accentuates their in
fluence. An equilibrium in commod
ity prices is yet to be reached, par
ticularly In the great agricultural
staples, securities markets have con
tinued to lack stability, and senti
ment has remained oonfused.
Those are among the major ele
ments acting aa barriers to business
progress, but they are familiar phases
in times of readjustment. The point
"I HAVE SEEN"
IRVIN S.
COBB
Noted Author
"The old time watchword—
*Let die Buyer Beware 9 has
given way to the modern
si ogan of confidence 9 Buy in
Safety, and this miracle was
wrought by the honesty of
manufacture which charao
terizes every fine American
product . A notable example of
the modem manufacturers 9
constant desire to give the
public the best is your use of
the Ultra Violet Ray in the
'Toasting of LUCKY STRIKE
tobaccos • Anyone can see this,
as I have seen it on my visit
to your LUCKY STRIKE
Plant . If* magnificent
%4P*-
X > mSlflll^^jr
m ■
Your Throot Protection —ooolnst irritation against cough
Consistent with its policy of laying the facts before the public, The American Tobacco Company invited Mr. Irvin 8.
Cobb to personally witness and to review the reports of the distinguished men who have witnessed LUCKY STRIKE'S
famous Toasting Process and report his findings. The statement of Mr. Cobb appears on this page.
$ :M5, Tk* Am*rit*n Tebtcco C«.. llfn. * ' '
has been frequently stressed that
economic recuperation was not likely
to come otherwise than slowly and
unevenly, and the present absence of
a broad Advance Is not surprising.
More than the ordinary fluctuation
in the volume of trade appears in
individual lines from week to week,
giving the composite situation a
highly irregular aspect, and there is
no general upward trend in the vari
ous statistical barometers.
There is, however, a natuarlly im
proved status in the retail field un
der the stimulus of autumn require
ments, and the Increased activity in
this channel has been aided recently
by cool weather over a considerable
area of the country.
Conditions in manufacture, as a
whole, have not changed in marked
degree, although buying for re
plenishment of stocks and some for
ward purchasing Induced by attrac
tive prices has raised the level of pro
duction in certain instances. In view
of the unusual circumstances which
have prevailed for many months, and
which have been practically world
wide, conservative opinion does not
minimize the adjustments yet to be
completed, even while recognizing
the importance of the results already
achieved in strengthening the basic
structure of business.
intimately, there will be a fuller
response to the better fundamental
position, and it will be facilitated by
the abundance of funds available at
exceptionally low rates. Instead of
the growing monetary tension of a
year ago, with abnormally Inflated
loans on speculative acconnt, the cur
rent trend is toward further ease in
both respects.
Brokers' Loans Sharply Reduced
The current week’s reduction in
brokers’ loans considerably exceeded
the largest estimate made in finan
cial circles before the report ap
peared. It was regarded as a fore
gone conclusion, with the further
abrupt fall of stock prices early In
Say*
“It’s toasted"
the weqk, that loans would tye sub
stantially decreased, but the actual
decline of $159,000,000 came in the
nature of a surprise. It lowered the
total as of October 1, according to
compilations made by federal reserve
banks, to $3,063,000,000, a point not
previously touched since 1927. Al
most exactly a year ago, loans on
brokerage account were above $6,800,-
000,000, so that the amount has been
more than cut in half.
Another striking contrast with the
conditions prevailing at this time last
year is reflected in a comparison of
money rates. The prevailing charge
of 2 per cent for call loans is only
one-fourth of the quotation of a year
ago, while existing rates of 2 to 2%
per cent for time funds are much be
low the 9 to 9% per cent named in
this week of 1929.
Failure Totals Continue High
■ It was to be expected, in the light
of the weekly returns, that the -num
ber of failures in the United States
in September would be unusu ally high,
and the total of 1,963 commercial
defaults represents a new maximum
for the period. It also marks a re
versal of the declining ttend note In
August, when insolvencies were at
the lowest level for this year, and
the increase over the 1,568 failures
of September, 1929, exceeds 25 per
cent
Conversely, last month’s liabilities,
although exceptionally large for this
season; are 4% per cent below those
for August. The respective amounts
are $46,947,021 and $49,180,653. With
the close of September, the figures on
the business mortality for the third
quarter became available, and the
5,904 defaults have not been equaled
during any corresponding three
months. The rise over the 5,082 in
solvencies of the third quarter of 1929
approximates 16 per cent, while the
latest quarter’s indebetdness—sl3s,-
954,091—5h0ws an expansion of fully
35% per cent over the $100,296,702 of
the third quarter of last year.
LUCKY STRIKE—the finest cigarette you
avar smoked, made of the finest tobaccos
—the Cream of the Crop—THEN—"ITS
TOASTED/ 7 Everyone knows that heat purl-
Has and so TOASTING removes harmful
Irritants that causa throat irritation and
coughing. No wonder 20,679 physicians
have stated LUCKIES to be lass irritating!
Everyone knows that sunshine mellows
—that’s why TOASTING Includes the use
of the Ultra Violet Ray.
Steel Output Practically Stationary
The week which began a new
Sonth was marked by little change
the rate of steel output. Estimates
not unnaturally have varied a little,
but the consensus of report indicates
a production about on the same basis
as that of last week. In point of new
business, advices also have differed,
although the balance is stated to be
on the side of improvement.
Fall Textile Trade Broadens
The cooler weather of the week
gave added Impetus to fall trade in
textiles. That was true both of retail
and wholesale distribution, and in
terruption of activities by the observ
ance of further Jewish holidays was
a temporary phase. Much irregular
ity still marks purchasing in differ
ent centers and sections of the coun
try, yet seasonal expansion has oc
curred in varying degree in numerous
instances, and there has been evi
dence of light stocks in dealers’
hands.
SoreThroal?
Don’t neglect a sore throat! It
is uncomfortable at best, and can
easily lead to something worse.
Make a gargle of Bayer Aspirin.
It will ease all soreness, and reduce
the infection. But get the genuine
Aspirin physicians endorse; look
for the Bayer cross stamped on
every tablet, thus:
\ t

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