REPEAL OF WAR-TIME PROHIBITION.

COMMITTEE ON AGRICULTURE,

HOUSE OF REPRESENTATIVES,

Washington, D. C., Tuesday, December 9, 1919.

The committee met at 10 o'clock a. m., Hon. Gilbert N. Haugen (chairman) presiding.

Mr. RAINEY. Mr. Chairman, and gentlemen, I desire to call attention to a bill which a Member, James Gallivan, has presented to the House and referred to this committee, repealing war-time prohibition. I have presented a similar measure to the House, and the same has been sent to the Committee on the Judiciary. It is my desire that you gentlemen give consideration to the Gallivan bill and grant a hearing on the same.

This act, as you all know, was passed under the guise of a wartime necessity, and I now maintain that for all practical purposes the need for this legislation has passed and it comes now to a consideration of some of the fundamental principles of our Government, namely, justice and equity. In January of the coming year, by what some have termed the will of the people, this country will be covered with a cloak of prohibition, and there remains but a short time for Congress to indicate its desire to our fellow countrymen that we, in this age and this Congress, are cognizant of those principles to which I have called attention and to which the success of this Government depends, by repealing this act, and for this committee to show that it is satisfied, by reporting this bill, to place the burden of its rejection, if such be your minds, to the Congress as a whole. Further than this, the repeal of this act will bring to the Treasury of the United States in round figures about $440,000,000, which can be applied to the payment of bonuses to those who have served this country in our recent war. Besides presenting an economical proposition it presents a question of whether or not we desire to do what seems to be the unwritten law-that is, to give a man who has been engaged in the liquor business a limited time to dispose of the stocks which they acquired when the business was recognized as being legitimate and lawful. Most States that have passed constitutional amendments prohibiting the further sale or manufacture of alcoholic beverages have shown their sense of fairness by giving to their citizenry engaged in the industry a year or more in which to close out their business and adjust themselves to the new conditions. I will not take up further time urging this request, because I am sure that you will see fit to grant the same.

The CHAIRMAN. What is the desire of the committee as to granting a hearing on H. R. 1704?

(After a discussion of the question, 10 a. m., Saturday, December 13, 1919, was set for a hearing on the bill referred to above.)

COMMITTEE ON AGRICULTURE,

HOUSE OF REPRESENTATIVES,

Washington, D. C., Saturday, December 13, 1919. The committee met at 10 o'clock a. m., Hon. Gilbert N. Haugen (chairman) presiding.

The CHAIRMAN. Pursuant to the order of last Tuesday, the Chair lays before the committee H. R. 1704, to repeal that part of section 1 of an act of Congress approved November 21, 1918, giving the President power to declare by proclamation nation-wide prohibition after June 30, 1919.

I lay before the committee H. R. 1704:

A BILL To repeal that part of section 1 of an act of Congress approved November 21, 1918, giving the President power to declare by proclamation nation-wide prohibition after June 30, 1919.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That so much of section 1 of an act of Congress entitled "An act to enable the Secretary of Agriculture to carry out, during the fiscal year ending June 30, 1919, the purposes of the act entitled 'An act to provide further for the national security and defense by stimulating agriculture and facilitating the distribution of agricultural products,' and for other purposes," which reads as follows:

"That after June 30, 1919, until the conclusion of the present war and thereafter until the termination of demobilization, the date of which shall be determined and proclaimed by the President of the United States, for the purpose of conserving the man power of the Nation, and to increase efficiency in the production of arms, munitions, ships, food, and clothing for the Army and Navy, it shall be unlawful to sell for beverage purposes any distilled spirits, and during said time no distilled spirits held in bond shall be removed therefrom for beverage purposes except for export. After May 1, 1919, until the conclusion of the pre ent war and thereafter until the termination of demobilization, the date of which shall be determined and proclaimed by the President of the United States, no grains, cereals, fruit, or other food product shall be used in the manufacture or production of beer, wine, or other intoxicating malt or vinous liquor for beverage purposes. After June 30, 1919, until the conclusion of the present war and thereafter until the termination of demobilization, the date of which shall be determined and proclaimed by the President of the United States, no beer, wine, or other intoxicating malt or vinous liquor shall be sold for beverage purposes except for export.

"The Commissioner of Internal Revenue is hereby authorized and directed to prescribe rules and regulations, subject to the approval of the Secretary of the Treasury, in regard to the manufacture and sale of distilled spirits and removal of distilled spirits held in bond after June 30, 1919, until this act shall cease to operate, for other than beverage purposes; also in regard to the manufacture, sale, and distribution of wine for sacramental, medicinal, or other than beverage uses. After the approval of this act no distilled, malt, vinous, or other intoxicating liquors shall be imported into the United States during the continuance of the present war and period of demobilization: Provided, That this provision against importation shall not apply to shipments en route to the United States at the time of the passage of this act.

"Any person who violates any of the foregoing provisions shall be punished by imprisonment not exceeding one year, or by fine not exceeding $1,000, or by both such imprisonment and fine: Provided, That the President of the United States be, and hereby is, authorized and empowered, at any time after the passsage of this act, to establish zones of such size as he may deem advisable about coal mines, munition factories, shipbuilding plants, and such other plants