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STON MEDICA

CEP 28 1019

LIBRARY

FIFTY-FIFTH ANNUAL CONVENTION

OF THE

United States Brewers' Association

HELD IN

SPRINGFIELD, MASSACHUSETTS, AT THE HOTEL KIMBALL OCTOBER 13-16, 1915

ADDRESS OF PRESIDENT EDWARD A. SCHMIDT

THURSDAY MORNING, OCTOBER 14, 1915.

Two years ago you honored me by electing me to the Presidency of this magnificent Organization. In accepting the office I fully realized the great responsibilities which went with it, nor was I unmindful of the crises which faced our industry, necessitating hard work, persistent effort and intelligent organization, if success was to be achieved in opposing the onslaughts of our enemies.

Beset on all sides by elements stirring up strife and bitterness, founded upon fanaticism, misrepresentation and deliberate distortion of facts against our industry, it became manifest to me that strenuous efforts would have to be put forth, not only by this organization, but by all State, local and kindred bodies, to combat the glaring untruths uttered upon the public platform and in the publications of the Anti-Saloon League and Prohibition Organizations, whereupon, with the approval of your Board, plans for a campaign of publicity and education were evolved, embracing in their scope the preparation, sifting and assembling of facts bearing upon the social aspects of the liquor question. In this we were largely assisted by the wonderful Reference Library, which your Association has gathered together in the past twenty-five years.

Our previous efforts had been limited largely to putting the facts before those men and women whose position and influence qualified them to take the lead in molding public sentiment. There is no doubt of the soundness of this method, but, unfortunately, everything relating to the use of alcohol is the subject of such bitter controversy that the mass of the people find themselves involved in such a maze of contradictions that the truth is obscured.

Organizations such as the Anti-Saloon League, the Woman's Christian Temperance Union and the Scientific Temperance Federation have flooded the country with such gross exaggerations, such wilful perversions, and such wild and reckless statistical misstatements, that the views of thoughtful men have been of little or no avail.

We have, therefore, to face the task of putting the facts directly before the mass of the people, not in a prejudiced manner, not as a special plea, or as the representatives of a particular interest, but rather in a fair and impartial spirit, so that the voters of this Country may be able to act intelligently upon the merits of the case.

It naturally required considerable time and money to plan and organize such a campaign, and we have now reached the period when, with the spirit of mutual helpfulness, which has been so liberally extended by State and Local Associations, our efforts are bearing fruit all over the country.

The keynote of this educational campaign is conspicuously shown by the determination to immediately combat and refute any misstatements of conditions, no matter where, when and how they appear, by publishing the actual facts, usually obtained and vouched for by personal investigation and verified by statistical records, which in nearly every instance disclosed a deliberate attempt to prevaricate, and to distort actual facts.

The discrepancy between conditions as they actually are and as represented by our enemies is simply astounding, yet a well-meaning but utterly misinformed body of reformers will give both moral and financial support to unscrupulous persons, whose main inspiration springs from the lure of financial reward made possible by liberal contributors.

All we ask of the Public, when reading our statements, is to

apply the test of reason and calm consideration in forming an opinion based upon the argument stripped of all passion and prejudice.

The financial and industrial depression of the past year has affected all the highways and byways of commerce; and the brewing trade has suffered with the rest. But other industries have not been called upon to bear any such enormous increase in the burden of taxation, as has fallen upon the brewing industry.

The decrease of 10 per cent in the beer sales of the past fiscal year, only tells part of the story of.our business troubles. As you all know, this decrease is due much more largely to the general depression which pervades industrial centers, than to the spread of prohibition territory. It is a fact that the beer production of all the states south of Ohio has at no time exceeded 4 per cent of the total production in this country; and Florida, Kentucky, Louisiana and Texas are still "wet."

The saloons themselves have been hard hit by the depressed conditions in many centers, and this has been co-incident, in many cases, with the large increase in the license fee. Wherever the system of high license prevails, it may be estimated that the average saloon-keeper has to make a net profit of at least $10.00 each working day, to pay the cost of the license and the rent, without counting anything for the bar-tenders or the proprietor. If such saloons sold beer alone, the saloon-keeper would have to make 500 sales of beer to his customers every day, in order to earn the cost of the license fee and the rent, without figuring the cost of any of the other overhead charges. I mention this to show you that such a thing as the separation of beer licenses from the general license to sell all kinds of beverages implies the necessity of a great reduction in the license fees, and a consequent loss in State and Municipal

revenues.

This brings me to the consideration of the so-called "saloon problem." For many years the educational work of our Association. was hampered by the lack of a constructive policy, which, however, was impossible until practically all our own people had reached the point of conviction in regard to the necessity of saloon reform and of rigid law observance.

We have at last come to fairly general agreement as to what