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FIFTY-FOURTH ANNUAL CONVENTION

of the

United States Brewers' Association

HELD IN NEW ORLEANS, NOVEMBER 18-21, 1914

ADDRESS OF PRESIDENT EDWARD A. SCHMIDT,
THURSDAY MORNING, NOVEMBER 19, 1914.

I will not encroach upon your time and patience in reviewing the happenings of the past year, which, in various degrees, affected the Brewing Industry, as they will be covered in extenso by the complete reports of the Board of Trustees, the Standing Committees and the Secretary; but I will digress for a moment to express my personal disappointment in not being able to report the defeat, at the hands of Congress, of the pending legislation, which has for its object the utter elimination of the Brewing Industry in the United States of America. However, it is my firm conviction that this is only a pleasure deferred.

The critical revenue situation, which developed as the result of the outbreak of the great European War, now raging, has forced our government to recast the Internal Revenue Laws, so that the shrinking in incomes, caused by a practical cessation of all imports for the time being, could be overcome. In looking for items that would yield the necessary revenues promptly, so that the various governmental departments might run along in their customary channels, our industry, as was the case during the Spanish War, was selected as one that would instantly yield a large revenue without the necessary delays in organizing machinery for its collection. Our industry rallied to the support of the government and accepted the new burdens with its usual patriotism.

An industry represented by such a high type of patriotism should not, and, in my judgment, will not be destroyed by the lawmaking power of our country.

In the face of the unjust and unfair attacks of Prohibitionists and the Anti-Saloon League before the Congress and the State Legislatures of the country, and while the extravagant claims of the Anti-Saloon League and other prohibition organizations have led the public to believe that the whole country is rapidly going dry, it is a matter of congratulation that the Brewing Industry can again record an increase, although a small one, in the sales of beer, for the fiscal year ended June 30, 1914. This in spite of the great shrinkage in business, which has manifested itself in so many branches of industry employing large numbers of men. The American Grocer states, in its recent study of the beverage business of the past ten years: "The figures show that in spite of the adoption of prohibition in some States and local option in others, the per capita consumption of alcoholic drinks has increased nearly three gallons."

It is of course true that there has been a considerable reduction in the number of legalized drinking places, due to a number of causes, such as the adoption of statutory limitation in many States and weeding out of retail dealers through the imposition of higher license fees, but the territorial claims made by the Anti-Saloon League, to show the spread of prohibition, must be taken with a good deal of reservation. The foolish physiology of many of the so-called temperance associations is a matter of general comment among professional educators, and their geography will not stand the test of analysis either.

Not a single city of the first class is included in the dry territory. The no-license vote in many municipalities does not represent prohibition sentiment, but simply betokens proximity to some city under license, which will supply all wants.

In view of the consumption statistics it is evident that the large gains of prohibition territory represent to a large extent paper values. During the ten years ended June 30, 1910, the urban population increased from 30,797,185 to 42,623.383, or 38.3%. In the same period the beer sales increased from 39,330,849 to 59,485,187, or 51.2%. Probably 9/10 of the beer is consumed by the adult male population in urban communities.

Prohibition in effect has never sustained the claims of its ad

vocates; it is contrary to the true principles of human government. The best government is that which conforms to the old Democratic theory, "Give a maximum of Liberty with a minimum of Law." This conforms to the plan of the Creator, who evidently intended that man should work out his own destiny by the exercise of his intelligence and the strength of his will power.

A true man uses the good things of life with perfect control of his appetite. Use without abuse, appetite subject to reason, is the highest rule of living. The aim of civilization is to make man better and stronger by enlightenment and development of the will, and not by the imposition of arbitrary rules.

The liquor business in all its branches has been so perpetually harassed by legislative bodies, acting under the impulsion of so-called temperance organizations, that we have been forced to watch pending legislation with the utmost vigilance. At the same time the licensing laws and local option laws, and recently the initiative and referendum systems, have been taken advantage of, not only by political parties and individual politicians, great and small, but by bodies of prohibition crusaders, to such an extent that we have become the football of political contests from one end of the country to the other. I am firmly of the belief that we must so order our affairs as to rise above questions of political expediency and that our aim must be to take at least our part of the liquor business entirely out of politics.

Recent elections indicate that in some of the States opposition exists apparently in the public mind to the saloon as a medium for the distribution of our product; the type of saloon which is objectionable in some of the cities and rural communities can, undoubtedly, be reconstructed along lines that would remove the objectionable features complained of, and I would suggest that steps be taken to the end that the brewers of the various States appoint committees to co-operate with all legally constituted bodies having for their object the creation or reconstruction of the saloon or tavern along lines that will obviate objectionable features and at the same time supply a recognized need for a clean, well-conducted, hygienic place for refreshment and social gathering for all classes, such as obtain in all cities of Continental Europe. I am confident, if co-operation along these lines can be brought about, our people will welcome it and contribute their full share of effort and energy to reach a solution of this question and remove it as a disturbing

An industry represented by such a high type of patriotism should not, and, in my judgment, will not be destroyed by the lawmaking power of our country.

In the face of the unjust and unfair attacks of Prohibitionists and the Anti-Saloon League before the Congress and the State Legislatures of the country, and while the extravagant claims of the Anti-Saloon League and other prohibition organizations have led the public to believe that the whole country is rapidly going dry, it is a matter of congratulation that the Brewing Industry can again record an increase, although a small one, in the sales of beer, for the fiscal year ended June 30, 1914. This in spite of the great shrinkage in business, which has manifested itself in so many branches of industry employing large numbers of men. The American Grocer states, in its recent study of the beverage business of the past ten years: "The figures show that in spite of the adoption of prohibition in some States and local option in others, the per capita consumption of alcoholic drinks has increased nearly three gallons."

It is of course true that there has been a considerable reduction in the number of legalized drinking places, due to a number of causes, such as the adoption of statutory limitation in many States and weeding out of retail dealers through the imposition of higher license fees, but the territorial claims made by the Anti-Saloon League, to show the spread of prohibition, must be taken with a good deal of reservation. The foolish physiology of many of the so-called temperance associations is a matter of general comment among professional educators, and their geography will not stand the test of analysis either.

Not a single city of the first class is included in the dry territory. The no-license vote in many municipalities does not represent prohibition sentiment, but simply betokens proximity to some city under license, which will supply all wants.

In view of the consumption statistics it is evident that the large gains of prohibition territory represent to a large extent paper values. During the ten years ended June 30, 1910, the urban population increased from 30,797,185 to 42,623,383, or 38.3%. In the same period the beer sales increased from 39,330,849 to 59,485,187, or 51.2%. Probably 9/10 of the beer is consumed by the adult male population in urban communities.

Prohibition in effect has never sustained the claims of its ad

vocates; it is contrary to the true principles of human government. The best government is that which conforms to the old Democratic theory, "Give a maximum of Liberty with a minimum of Law." This conforms to the plan of the Creator, who evidently intended that man should work out his own destiny by the exercise of his intelligence and the strength of his will power.

A true man uses the good things of life with perfect control of his appetite. Use without abuse, appetite subject to reason, is the highest rule of living. The aim of civilization is to make man better and stronger by enlightenment and development of the will, and not by the imposition of arbitrary rules.

The liquor business in all its branches has been so perpetually harassed by legislative bodies, acting under the impulsion of so-called temperance organizations, that we have been forced to watch pending legislation with the utmost vigilance. At the same time the licensing laws and local option laws, and recently the initiative and referendum systems, have been taken advantage of, not only by political parties and individual politicians, great and small, but by bodies of prohibition crusaders, to such an extent that we have become the football of political contests from one end of the country to the other. I am firmly of the belief that we must so order our affairs as to rise above questions of political expediency and that our aim must be to take at least our part of the liquor business entirely out of politics.

Recent elections indicate that in some of the States opposition exists apparently in the public mind to the saloon as a medium for the distribution of our product; the type of saloon which is objectionable in some of the cities and rural communities can, undoubtedly, be reconstructed along lines that would remove the objectionable features complained of, and I would suggest that steps be taken to the end that the brewers of the various States appoint committees to co-operate with all legally constituted bodies having for their object the creation or reconstruction of the saloon or tavern along lines that will obviate objectionable features and at the same time supply a recognized need for a clean, well-conducted, hygienic place for refreshment and social gathering for all classes, such as obtain in all cities of Continental Europe. I am confident, if co-operation along these lines can be brought about, our people will welcome it and contribute their full share of effort and energy to reach a solution of this question and remove it as a disturbing

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