Evening Star Newspaper, December 26, 1928, Page 4

3 MILLS' PLAN WINS DURANT DRY PRIZE NING STAR. WASHINGTON, D. ¢, WEDNESDAY., DECEMBER 26, 1928 DORAN CRITICIZES SERIES OF THEFTS MILLS’ DRY PLAN; OLD STUFF, HE SAYS BELIEVED SOLVED Suspect Is Charged With Nine as the use of this alcohol approaches legitimate consumption its cost to the bootlegger will rise to such an extent as to make it unprofitable for him to operate, and Wi this point is reached, the solution of alcohol diver- sion will also be reached. The conditions of the Durant prize Wisotzky, 3400 block M street, and a radio set and suit case from Joseph R. Zimmerman, 1100 block of Rhode Island avenue. Detectives Hodkinson | and Stroman of the seventh precinct | say they recovered about $250 worth | of property at the South street address. | They believe that in the arrest of | 18 HOURS Washington fo Florida Double Track Railrosd Beteee!the North aad Florids TEXT OF MILLS PLAN Inquiry Into Reliability ‘of Corporations and Individuuh Asking Alcohol Permits Given FROM WASHINGTON defined and the method of control sim- ilarly illustrated. This plan is predicated on the sound economic theory that when the cost of the product exceeds the capacity of the consumer to pay, the demand Particlac SE contest, limiting the words to 2,000, (Continued From First Page.) Tumer they have solved a_series of The Miamian ' Glffczo‘i,fl Ltd. articular Stress. 5 i recen! rom eorgetown mer- Ly. 2:45 p. v. 2:45 p. m. forbld further XAl it oved [ used at the pregent time, with some Looting Cases—Bound Over | {teemt i % o-e.‘?r;;_‘h : ,}"‘,D"'“ s o 7 g T of diversion to control, alcohol, but |success, it was explained. in Two of Them. —_— e Other Fast Through Trai Boy Student From Hoover's| 7o sl e fufdt | G2 ioe torcing apenciees ™" “"7 | cach o the oher sourcés_vine whir. | ‘The proposals made by Mills under DEMANDS SAFE AIRPORTS. || Himmatimiar::::n3 | e Rt e oy mer Fede i ky, beer and stills—may be as clearly | e general head of “enforcement,” Dr. o Sosial (.75 TII. Political. Lincoln said, “Let reverence for the laws become the political religion of | the Nation.” Let the President pro- claim himself on the subject and in- form his subordinates, the prohibition evai prohibition administrator for the New York district. | Doran said, had all been tried in one | Atrested early Monday, as he was | ! way or another. leaving a grocery store with three turk. CHATTANOOGA, Tenn., December | The *“political interference subject | €ys in a basket, James Turner of the 26 (#)--No more passengers will be which Mills raises, Dr. Doran said, was | 3100 block of South street has been | carried by air mail planes through | & cause of some difficulty to Mills him- | charged with nine cases of house- | Nashville or Chattanooga until the air- self when he was administrator, but due | breaking and today was bound over 'ports are made safe, Comdr. C. T. Coast Line Florida Mail Everglades Limited . . « . 10: Atlantic Coast Line The Standard Railroad of the South Home Town Is Given | Scnool Award. Diversion of alcohol and liquors under | cover of ndiscriminately granted per- | mits controlled by unrcliable persons By the Associated Precs | provides -the vast majority of liquor | administrators, that patronage and po- | 43S (i e cuickest and | to the recent act of Congress placing | to the grand jury on two of them. | Blackburn, general manager of the In- Tickets, veservations, information from NEW YORK, December 26.—A for- | consumed today. The task of restrlc!-nmicul {ntcrr(t{gncedter’\dlhil :3 lnufllumce oSt AoRIRORI WA Y. Of Sugprming ‘he | the whole prohibition bureau under | His bond was sei at $5000 in each | terstate Alr Lines, has definitely an- GEO. P. JAMES, G. P. A. e acts of e administrator con- = {ing and reducing permit holders to | those reliable persons or corporations conducting a legitimate business is the main problem in enforcement. Any plan logically carr'ed out and energetically pushed to a definite con- civil service, this matter was gradually | case following a preliminary hearing | nounced. Meantime the Government being stralghtened out to the satisfac- | before Police Court Judge Ralph Given. will establish beacon lights between this tion of all. ' William Mills, colored, said to have | city and Atlanta and also intermediate Even the figures quoted by Mills in | been an accomplice of Turner, was also | landing flelds every 30 miles along the his plan were referred to by Dr. Doran ‘ held for the grand jury under bond of | air mail route. lzlt‘r New York prohibition administra- tor and a 15-year-old high school boy from Herbert Hoover's home town are | vietors in William C. Durant's $30,000 1418 “H” St. N. W., Washington, D. C. Tel. Main 7835 - 1 Tripe™ e e bootlegger and speakeasy. e Bishop M. J. Crane Dies. trolling the permissive phase must not be tolerated. Such political inter- ference 1s one ‘of serious handicaps to ”;1’ effective control of the permissive phase. enforcement plan. Maj. Chester P. Mills s prohibition adminisirator for the New York City disirict a year ago last June, won the main prize of $25,000. Malcolm D. Almack, a junior in Palo | Alto, Calif., high school, won the $5,000 | school prize. The boy recelves $1.000 | and his school $4,00 More drastic restrictions and_closer supervision of the traffic in_industrial | alcohol to curb d on into illicit channels were sug d by Maj. Mills. prize contest for The best prohibition | who resigned | lany one plan and cartied it through. clusion is better than no plan at all. Unfortunately, except for the Coast Guard, the Federal agencies charged | with enforcement have never adopted IV. Detailed Method of Controlling Diversion of Industrial Alcohol. To more clearly define the above an and to bring out its effectiveness, 4 will be concrete. The second Federal | prohibitiop district comorises the south- The Volst:ad act was well coficeived | ern and eastern judicial districts of and well w Its provisions are New York State. The sources for this capable of enforcement with few, if any. | district clearly are defined as follows: legitimate changes. Alcohol, whisky, wine, beer, stills. The governmental agencies charged | wiih respect to alcohol, we have to with carrying out the provisions of th | Goal with (1) alcohol manufactured by act were not well organized originally | gistilleries and denatured at the dis The Volstead Act. PHILADELPHIA, December 26 (#). iliary head of the Catholic diocese of —Bishop Michael J. Crane, 65. aux-| as all relating to the time when Mills was in office, the latest date mentioned | goods. The charges filed in Police | of the company, by him being June,.1927, prior to Mills’ resignation in July of that year. $2,000 on a charge of receiving stolen Maj. Earl Ward, operations manager is in the city investi- Court today were that he stole several gating the crash at Marr Field Sunday rticles of clothing from Solomon | in which four persons lost their lives. Education of the people concerning ; and had litile conception regarding the | #he prohibition law, feaching more re- | scope of work necessitated and the re- | Lkt (2), alcohol denat spect for the law and a more scientific in Almack's plan. | Checks Are Received. Checks for the prizes were received | yesterday by M: Mills at his home in and by Almack his and the principal of | Alio. Approximately half of the 23.230 | plans submitted in the contest were sent | in by women. The total number of | suggestions .offered by the contestants | was 64,000, | Only 744 suggested modification of | the eighteenth amendment, while 5,340 | urged modification of the Volstead act. Of “these 1536 favored manufacture | and sale of intoxicants, and 400 wanted light wines and beer. Better use of Federal organizations | ‘was offered as a solution by 3,388, while | better State and local co-operation was | 5 suggested by 2569. Recommendations for education and propaganda were made by 19,108. Church training formed the theme of 1,092 suggestions. = General education urged by 2,629. Replies From Every State. The prize offer, which was made by Mr. Durant August 27, evoked replies from every State in the Union, every territorial possession of the United States, Canada and many foreign countries. New York State, with 2,104 plans, led in the number of contestants. Penn- sylvania was second with 1455, Cali- fornia offered 1,128, Massachusetts 732 and Missouri 673. Among the foreign entries was one from a general in the Brazilian army and one from a Chinese official. The plan offered by Maj. Mills, he #ays, follows closely the policy he pur- sued during his administration of the prohibition law in New York, a policy not eonsummated when he resigned. In the handling of denatured alco- hol, Maj. Mills urged closer scrutiny! of and concerns to whom per- mits ‘are issued, and declared for the elimination of the independent de- naturing plants, which, he says, have no economic place in the business and are forced to divert part of their out- put into bootleg channels to make profit. Mills Appointed in 1926. Stricter supervision of rfume | peot business experience of.the persons,| We now come to the ve of e h ry serious evil . . . - s e e O e A\ fthelr moral, social and financlal stand- |of diversion under cover of permits au- Three attractive pieces, strongly A suite you will be justly proud to pos- 10° prevent them disposing of the alco- hol - to bootleggers through ‘“cover " is urged in“the Mills plan. §aj. Mills was appointed prohibition administrator for the New York dis- trict in February, 1926, and resigned June 27, 1927, after announcement of his transfer to the position of Eastern Zone supervisor. He is a graduate of West Pointand served as a_member of the general staff in the World War. QnA‘ the time o"t hi-;l resl‘;nntlon ;:d 2 subsequent series of magazine articles Maj. Mills blamed the activi- ties of politiclans in the selection of hibition officers for the lack of en- orcement. DRY PLAN OF STUDENT. Teaching Respect of Law Suggested by Malcolm D. Almack. PALO ALTO, Calif,, December 26 (#). —Pellow townsmen of Malcolm D. Al- mack, who won the $5,009 school prize in: the Durant award for the best es- says. on prohibition enforcement, are almost as proud of him as they are of that other famous Palo Altan, Herbert Hoover. The lad who brings to his school $4.000 and to himself $1,000 is only 15 years old.. He is the son of Prof. John C: .Almack of the Stanford University department of education. He is a junior in’Palo Alto High School and was born in: Rockford, ‘Wash. Malcolm's essay outlines three main methods of making prohibition a suc- ces§, he told the Associated Press. The first is to teach thepeople“more about the law. The second suggestfon is to teach people more respect for the law, laying stress on the element of sports- manship, which he says appeals to the American people. The third proposition is"to bring about better enforcement of the. law, mainly through a more scien- tifie selection of enforcement officers. Young Almack said he read a great many books in preparation for his es- =8y and studied the newspapers. His father and his high school principal, w_mflter H. Nichols, did very little coach- Icolm said he would put the $1,000 in the bank and save it for col- € Icohol t the boot- . » . 6 Chai ith ine leather seat: is essential to eradicate this smuggling, | {PeCially denatured alcohol 1o & 1-|= velour. Mahogany _finished-. frame airs with genuine leather seats. WARRANT CHARGES The mprovement in the last few vears | ¥ ¥%5 APPRGTAIEY 309 B |2 10 conlhts of Davenport, Arm- Oil Beautifully carved legs; Tudor de- THEATER ROBBERY |c2erstion o exoreiong e, policy of | same class of ‘alcohol to the bootlegger chair and Wing Chair. Regularly $189 Heater | sign, in Walnut veneer. ‘Whashington Detective Leaves for " Chicago for Suspect in Earle Hold-up. Armed with a warrant charging EImo Willlams with the robbery of the Earle Theater October 29. Headquarters De- tactive Thomas F. Sweeney left Wash- ington yesterday afternoon for Chicago 0 bring Williams back with him. Wiliams was arrested early yester- day by Chicago police and is being held for Washington authorities. It is not known whether he wiil fight extradition. Although complete details of the ar- fest and search for Williams have not been divulged, Inspector Henry G. Pratt, in charge of the detective bureau. s4id he had been sure of the identity since the day after the hold-up. It was learned. however, that Wil- Bams was traced first to Pittsburgh, where it was discovered his home was {1 Tampa, Fla. Police of the Southern city were asked to be on the lookout i - d 4 b2 i . | prepared for each district showing OVE ; 5 9 5 pleasing designs. 'Droplul_ table an e R ey e graphically and by fgures the move- $30.00 National” tomorrow. 1 . chairs to match. Very special at telegraphed local authorities that wil- | ment into consumption -of all ‘liou! lams had been located in Chicago. He | COntaining sicohol from each of these $540 $45.00 - brigesist. ©|sources. These statistics correc was arrested at the request of Wash- | Sources. These statistics corrected $1,200 $100.00 ington police. ,Peabody’s Condition Favorable. BALTIMORE, Md., December 26 (). oiQeorge Foster Peabody, New York | local administrators; this publicity must PLAN BANK philanthropist, who was overatsd ubon | pg gy extensive as possible. In addi- Suiber Bupsevisisn .5, Sonssnch ' Johns Hoptins Hospital Monday.| tion the monthly statistics compiled gy was reported at the hospital today be “getting on very well.” w0 ‘The state of Sao Paulo, Brazil, now 4 £ balf of the coffce cups of the world. school in Palo | into two clas: | placed upon them. To this be attributed most of the difficully now being encountered in proper enforcement. ‘The act authorized a continuation of the usc of commercial alcohol, rede- fining th statutes then in force. Commercial aleohol was again divided (1) Completely de- natured alcohol considered poisonous and not capable of redistillation: (2) speciall; denatured alcohol rendered unpalatable and unfit to drink, but suitable for manufacture into many articles and capable of redistillation Manufacture of grain alcohol, its con- version into completely denatured and specially denatured alcohol; whisky for medicinal purposes and manufactured nto tonics; wine for religious use and manufactured into vinegar and tonics; the manufacture of beer—all were to be controlled by Permm or privileges is- sued to reliable persons by the Gov- rnment. In the rush to put the provisions of the act into effect these privileges were | granted without proper caution: result, | there are still large numbers of such ipermits in the hands of lawbreakers. ‘There is no necessity for nor can there be tolerated any violation of an individual's personal rights in enforc- ! ing the law, but there can be no leni- | ency shown the individual, regardless of his political, social or financial stand- ing, who enriches himself by willful disobedience of la ‘The agencies of enforcement must keep the public fully informed as to their policies and aims and so conduct themselves as to obtain and keep the respect of all classes. Outline of Plan. ; With the above in mind I submit a |plan to make the eighteenth amend- | | ment effective and will discuss this plan under four headings: (I) Permissive. (II) Enforcement. (III) Political. (IV) Detailed method of controlling the di- version of industrial alcohol. 1. Permissive. ‘The issuance of permits is a privilege conferred upon individuals or corpora- tions by the Federal Government and it is not only the duty but the right of the Government to inquire thoroughly into jthe reliability of the individuals or cor- porations asking this privilege. This inquiry should ' be conducted along lines similar to that conducted by a bank when extending loan privileges. ing, the probability of a legitimate mar- gckror t.heit:. utwdl, tr;e J‘{E"“‘“ of leir organ lon, must 10T Oy ! determined. ey In addition, before a permit is issued to any person who desires to manufac- ture from liquids containing alcohol, there should be obtained a consent from him providing that he will in writing inform the Government through its local administrator the time and place | where. he proposes to manufacture. This notification must be in sufficient | time to allow the local Federal adminis- trator to send representatives to super- “se the manufacture. Failure on the | part of the permittee to give this notifi- | cation should automaticaily stop future withdrawals. Permits when issued should be tem- porary, not longer than six months’ duration, so that local administrators may- have further opportunity to deter- mine the legitimacy of the business pro- posed and the responsibility of the indi- viduals concerned. If such time proves the applicant responsive and legitimate, then a permanent permit may be issued. ‘The control of the permissive phase is |a most important factor. If the issu- ance of permits is in future restricted solely to legitimate and responsible in- dividuals, gradually the present illegiti- mate holders of Government permits can be eradicated. Local conditions make it imperative that the local administrator be respon- sible for the issuance of permits and for their revocation in case of illegitimate handling. It is impracticable for the | {central Government to become suffi- ciently familiar with local conditions to allow it to intelligently pass upon ap- plication for permits. II. Enforcement. Enforcement logically , divides {tself into two groups (1) imports and (2) do- mestic supply. 1. After a bad start the Coast Guard has proved that the importation of al- | coholic beverages can be suppressed. | Statistics show that under 2 per cent of the liquor consumed is imported. I do not mean that this traffic has been eliminated. There are numerous in- stances along our borders and in the water of Florida where importation ex- ists. It can be overcome, as the Coast Guard has demonstrated, by unceasirg vigilance and patrol. Closer co-operation beteen the Coast Guard, customs and prohibition forces | Guard has vindicated ftself be_continued. 2. Domestic enforcement resolves it- | self into the suppression of stills and of diversion under permits. This domestic supply is the source of better than 98 per cent of liquor consumed and is, | therefore, the essential factor to | control. For control the country s organized | into prohibition districts conforming to | the judicial districts of the United | States. This zoning is satisfactory and | ereates an organization capable of ad- ministration. Local conditions in each district {vary. In one the supply of illegal | llauor may be entirely derived from stills: in another the great source of | supply of fllegal liquor is clearly de- | terminable. The plan of enforcement should recognize this and treat local | tonditions so as to insure the sup- pression of local sources. ‘The central Federal agency charged | with enforcement,_should secure from | each district 2 detailed account of the | sources of illegal liquor supply for that district. It should have each district formulate a plan for the suppression of these sources. Statistics should be source. | each district b2 publicly ‘made known by the central authorities and by the must be given the same publicity, so that various organizations now existing, such as the enforcement commit- tee, the Anti-Sploon League and others interested in law, can check thelr and_ should i eccomplished toward control of el(:hl An essential is that the sources for | | pendent denaturing p] | natured alcohol diverted by organiza | tions holding permits to use it for man- ufacture. | Diversions under the first class are comparatively small. The large distil- | leries which manufacture alcohol are |in the main responsible corporations, | highly financed and owning large quan- | tities of valuable real estate. Their | business is profitable and clearly de- | fined. Their loss in case they are de- tected violating the law is so tre- mendous that it is a great deterrent and nearly insures legitimacy. Strict | supervision should be kept of their manufacture and distribution of the manufactured product. | The independent denaturing plant has | no economic place in business, and here there may be necessity for legislative change in the Volstead act. If a Treas- ury Department regulation cannot elim- inate the independent denaturing plant, then this result should be secured by legislative action. ‘The independent denaturing plant can secure gain alcohol from one source only, and that is the distilleries au- thorized to manufacture grain alcohol. The independent denaturing plant has only two outlets for itc manufactured products. Completely denatured alcohol that it manufacture may be sold without per- | mit, but is incapable of redistillation and absolutely unfit for human con- sumption. The present laws requiring this product to be labeled as ‘“poison™ are drastic enough to practically insure its legitimate use. The second outlet of the independent plants is supplying per- mit holders (manufacturers of perfume, etc.) with specially denatured alcohol. In both outlets the independent de- naturing plant comes info direct com- petition with the distillefy from which it purchases its initial supply of grain alcohol. These distilleries are required to maintain denaturing plants. It is a fact that the distilleries will not, as a rule, sell grain alcohol to a competitor at a price that will enable the com- petitor (the independent denaturing denaturing plant) to manufacture and compete with them. The independent denaturing plant has no economic rea son for existence. Since the independ. ent plant cannot usually compete for legitimate business it is often driven to make a living by delivering unlawful supplies to the bootlegger. Diversion Via “Cover Houses.” thorizing firms to manufacture from specially denatured alcohol. The principal method of diversion may be illustrated by an example. A perfume manufacturer, as a permit holder, receives specially denatured al- cohol, for whose use he must account to the Government in records of per- fume manufactured and on hand or shipped out. The crooked permit holder pretends to ship his manufacturer product to a wholesaler known as a “cover house.” The wholesaler receipts for perfume, but actually receives or diverts specially denatured alcohol for the hootlegger. To disguise the transaction the “cover house” receives from the permit holder invoices and in many cases bills ofg lading. It acknowledges these invoices and even pays for them, as well as ac- knowledging the bills of lading. If the courts will not sustain the Gov- ernment in requiring . manufacturers who use industrial alcohol to show such disposition of their products as to en- able the local administrator to trace these products to a legitimate dealer, then we need another legislative change. vision of the manufacturing activities of these . permit holders ‘(manufac- turers using industrial alcohol) and the requirement that they notify the local administrator in sufficient time to enable him to supervise the man- ufacture, will - practically = eliminate their opportunities to divert specially denatured alcohol to the bootlegger. The finished manufactured product (perfume, etc.) is nearly incapable of redistillation and is not extensively used by the bootlegger. . In March, 1926, the withdrawals by such permit holders in the second Fed- eral district were 660,000 gallons of specially denatured alcohol a month. By unceasing vigilance and supervision of the activities of these permitees their number was materially de- creased, and this volume was reduced within a year to approximately 351,- 000 gallons a month, a reduction of 309,000 gallons a month, representing alcohol previously diverted into illegal channels. The remaining 351,000 gallons a month does not represent the - legitimate use of this class of alcohol for the district, but it does show what can be accomplished by systematic supervision. In March, 1926, the cost of this had risen to approximately $5.20 a gal- lon. As the source was suppressed, the cost of the product to the bootlegger rose. ranted to state that It is not necessary to have had an Ac- count at this Bank to Borrow, THE MORRIS PLAN $6,000 $500.00 However, I believe that strict super- | ideal suite at a low cost. something better.” cushions. in mahogany. handsome mohair. j / L | i | e stocks . Suite, chair, making the best. clearance to.. comprising davenport, lasting satisfaction. ze bed. ceals full- A magnificient 3-pc. frame- constructed for service and comfort. Comprises large and comfortable Settee, Club Chair and Wing Chair with loose cushions, upholstered in No Cash Payment top, Bed-Davenport suite with loose spring cushions, upholstered in beautiful jac- quard velour with sides in seli-tone "Pre-Inventory Clearance at Three attractive pieces strongly con- structed for service and comfort. prises large and comfortable Settee, Club Chair and Wing Chair, with loose cush- ions, upholstered in attractive velour. An No Cash Payment Com- Here's a super value selected at random from our a 3-pe. velour upholstered Bed-Davenport armchair clnb$ We've reduced this suite for quick Remarkable 3-Piece Bed-Davenport Suite Carefully upholstered in beautiful velour, this suite is designed to give Armchair, Rocker and Davenport which con- and Built by a leading manufacturer known for It's Worth $189 ... You Pay 149 genuine Leather Seats. above suite. THE MORRIS 1408 H STREET, N. Consists of large Buffet, Rectangular Exten- sion' Table and 4 chairs, walnut finish, with Similar in design to Another specimen value at the Pre-Inventory Clearance at ‘54 NATION ‘69 Unusual!- Carved Frame Living Room Suite Adapted to the use of those who want The large Settee, Wing Chair and Armchair of this com- fortable overstuffed suite are upholstered in Jacquard velour with loose, reversible Frame top and base finished No Cash Payment Distinctive 3-Piece Mohair Living Room Suite ‘08 13 onsole Phonograph Mahogany End-Table) Bridge Lamp and Shade, Six new Records $49.00 No Cash Payment Just as illustrated, with attractive Bow-end Bed, Dresser, Chest of Draw- ers and Dressing Table. Constructed to give maximum service and nicely finished in walnut on gumwood. Reg- ularly $89. It is hard to find a better value in bedroom suites than this. A remarkable offer in choice furni- ture! Comprises full size Bed, Dresser, Chest of Drawers and French Vanity. Nicely finished in walnut and built to give years of satisfactory service. Circulating Heater heat rooms| $34.50 No Cash Payment several Suite sess. Suite consists of full Dresser and ity, full sized Bed, Chifforobe, with triple mirror, constructed of walnut veneer over solid gumwood. Regularly $150. . Coal Range $34.50 - No Cash Payment 11 An excellent dining room suite, con- sisting of large Buffet, oblong Exten- sion Table, enclosed China Cabinet and 6 leather-seat Chairs, this Tudor design suite is most attractive. $ You, too, will be impressed with the beauty and grace of this elegant suite priced so low. 10 pieces, carefully finished in walnut veneer on gum. Consists of large buffet, oblong exten- sion table, inclosed server, china cabinet and 6 genuine leather-seat chairs. 10 Kitchen Cabinet 182 Nicely Finished No Cash Payment Room Suite An outstanding value! Oblong Extension Table, Buffet, Closed Server, side panel China Cabinet, 3-Piece Bed Outfit Consisting of Simmons| Metal Bed, guaranteed Sprin; and comfortable Mattress. Made to sell for $25, but worth more. But it's pre-inventory clearance and they must go. Richly decorated in a y of AL FURNITURE CO. Cor. 7th and H Sts. N.W. : e ‘ Pre-Inventory Clearance at Pre-Inventory Clearance at '52 Don’t Miss Seeing This Suite 79 4-Pc. Walnut Veneer Bedroom 10 Pcs., Worth $150, Reduced to ‘119 -Pc. Walnut-Veneer Dining 139 corated Breakfast Suite $E &.90