Indianapolis Times, Indianapolis, Marion County, 2 December 1943 — Page 18

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§ 7. :

en PT-18 “APPARENT thar there is preat “confirsion “on the

2 total amount of whiskies available to the public is

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. Is there really | a shortage ?

subject of the present whiskey supply. Surely the pub-

lic is entitled to the facts no matter how discouraging they may be. Following are frank answers to some of the most pertinent questions:

Is there really a whiskey shortage in this country?

‘Yes—a serious shortage!

Why is there a shortage?

Not a drop of whiskey has been distilled since October 8, 1942,

How much whiskey is available? |

precedented rate of demand aggravated by public hoarding, speculation and black market operations?

Certainly less than a year.

All present statements to the effect that there is

~ vplenty of whiskey for five years" are completely false.

Why isn't any whiskey being made in this country?

Because the distilling facilities of the entire industry are engaged

night and day in producing nothing but alcohol for war purposes.

Why does the Government need “so much war. alcohol?

10.

Medern wars cannot be waged successfully without it. Ware’

alcohol is essential in the manufacture of smokeless powder,

plies which a combat infection afid save human ves.

How much whiskey is there actually in storage? Approximately 303,000,000 gallons.

While the Alcohol Tax Unit of the Treasury Department, as of October 11, 1943, reported an invemory of 399,023,881 - gallons, ORIGINALLY put in barrels, 96,000,000 gallons have actually Sisappesied tigith soakage and evaporation which leaves a net of about 303,000,000 gallons, This evaporation is Resguand by the Government approved table of allowances. There is mo mystery about the amount of whiskey withdrawn from or in storage in Government bonded warehouses, The Alcoholic Tax Unit publishes these figures monthly.

A " 6. Is a comparison between whiskey stocks and whis-

key withdrawals a true indication of how long the available supply will last?

No. It is an accepted practice to blend grain neutral spirits with straight whiskey. Normally, as a result of this blending, the increased. oday, however, the supply of grain neutral spirits is only a small fraction of that of straight whiskies and soon the supply

. will be exhausted, making it necessary to withdraw more straight

whiskey to replace the grain neutral spirits formerly used.

Can all of this 303 million gallons of whiskey be sold now? .

No. Prior to the war, the distilling industry carried a normal inventory in bonded warehouses of over 500 million gallons which was necessary to maintain reasonable standards of quality. ‘To aveid repetition of conditions which existed in 1934, following repeal of prohibition, when young and immature whiskey was offered to the Jublie, it is essential to the public interest that soms reserve be maintained for post-war requirements. Otherwise, there will be a bone-dry period following the war, or the public will be compelled to drink green, unpalatable whigkey. Since the entire whiskey stocks now available are already angerously lower than normal inventory needs, the rern of not less than 100 million gallons is imperative, even entirely inadequate.

. 8. How much, therefore, is really available until proe

duction is resumed? : About 203,000,006 proof gallons.

is legal whiskey at all, is because whiskey must be _ aged before it is suitable for consumption. It cannot be made today and sold tomorrow like most other products. If it could, the country would have been bone-dry months ago because there would have been no reason Jor a stock. Never was the old adage more applicable —"‘you can’t have your cake and eat it, too”.

WASHINGTON, D.C.

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~+""nét to buy at black market prices. They have u

13.

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And it must be made clear that the only reason there

Spirits Institute, Inc:

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_ markets on the basis of previous

ere's what would happen if, tomorrow morning each individual distiller abandoned his self-img rationly accepted all orders. could get enough bottles, corks, cartons and sufficient labor, the entire supply would move out about as fist as it could be packaged... certainly in LESS THAN A YEAR. And surely no one could possibly regard this as a service to the public, the Government or the industry.

What has been done to make the available supply

last?

For almost a year each distiller has been following a selfimposed rationing program. Even so, it is estimated they are now bottling and releasing at the annual rate of from 90 and 100 million gallons of whiskies, compared with an output of whiskey of 134,508,954 gallons in the Government fiscal year

ending June 30, 1943, and 133,277,074 in the preceding fiscal year.

distributing their products fairly and equitably to the yarious h us purchase records, with due fllowances for shifts in population. :

Is it true that some of the lower priced brands have

disappeared from the market? =

Yes. Many rectifiers and small distillers who supplied a large art of the low priced brands have exhausted their limited stocks. n many cases, among the larger distillers, critical inventory itions made it necessary to curtail or eliminate some brands. ee naturally, such distillers sought to protect the continuity of their most important brands an higher quality brackets. In whiskey, as in many other commodities, consumer demand for higher quality products has

"greatly increased.

W hat have distillers done to help maintain O.P.A. ceiling prices? : They have published ceiling prices in their advertisements and have admonished the public not to pay more. They have urged the trade to cooperate with the Government by maintaining ceiling prices. They have urged retailers to display signs reading: “0.P.A. ceiling prices...do not pay more!” They have prepared a series of newspaper advertisements warning the public 3 the O.PA. to call a conference in Washington of the State liquor administrators for the purpose of urging them to lend their support in «the enforcement of the O.P.A. price regulations.

Have distillers raised their prices on whiskey?

O.P.A. regulations provide that distillers’ prices shall not exceed those in effect during March 1942, However, the regu-

lations do permit the addition of Federal Excise Taxes and

the elimination of promotional discounts. Just as thare are no one cent sales of scarce drug items today, mor special sales of canned -goods, cigarettes and other commodities greatly in demand, there are, of course, no cut-rate sales of whiskey. Wholesaler and retailer ceiling prices are also governed by O.P.A, regulations which provide fixed profit ceilings,

Have the distillers requested permission to resume

~ the making of whiskey during the war?

The position of the industry has been that as long as the Government requires its entire distilling facilities for the production of war-alcohol, these facilities should be devoted 1009 to that purpose. When the total facilities are no longer needed by the Government, the distillers feel that at least a partial resumption of the making of whiskey should be granted in order to alleviate the critical shortage and its resulting evils.

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How long will the present supply last?

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tional whiskey, when available?

vided they

Yes. Any large distiller who has his brands and trademarks to protect naturally will try to buy any acceptable whiskey which may be offered for sale. However, the purchase of whiskies by one company from another does not increase or decrease, by a single quart, the supply available for sale to the consumer. i

. Are consumers hoarding whiskey}

Beyond question, many consumers have bought beyond their immediate needs as they have done with other scarce products.

Has the trade been hoarding whiskey?

Wholesale stocks are lower than at any time in the last ten years. Retail stocks are much lower than normal. Some package stores do reserve favorite brands for their regular customers

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shortage is now universal. The nnajority of distillers are

these were gerierally in the

Alcoholic Beverage ly ie eet ou, NEWYORE No | > MEMBERS OF THE DISTILLED SPIRITS INSTITUTE, INC. ~~ pts :

thereby avoiding sales to those who might be hoarders, specu-

lators or black market operators.

18. Is there a black market in whiskey?

There is undoubtedly a black market in whiskey as there is in

- other commodities where

" gafoline, tires, etc. Only pu

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cooperation, tighter re

‘" more rigorous enforcement... or the resumption of whiskey pro-

duction...can correct it.

19. those of other American industries?

a shortage exists and where the .

According to a report printed in the New York Journal of Commerce of January 15, 1943, the distilling industry ranked in 13th position among 16 major industries from the standpoint

of percentage of profit to sales and likewise in the percentage

of profit to invested capital. ;

20. the bootlegger back?

Isthe shortage of whiskey and higher taxes bringing

Yes. The greater the incentive—thé greater the temptation,

Jot

The trademarks and trade names of a producer are among his most valuable assets. The distiller, like other producers, is

will not be forgotten.

trying to keep his brand names before the public so that they

Why is rum and gin more plentiful than whiskey?

Today rums and gins are imported, largely from the West Indies, Mexico and South America. The alcoholic base for these bever-

ages is distilled from blackstrap molasses and the labels

indicate

that they are products made from cane and not from grain.

CONCLUSIONS

1. There is an acute shortage of whiskey. If the present abnormal rate of demand were fully satisfied, the supply would be exhausted in

less than a year.

2. Even under the present rationing programs of the individual dis- ] EL g

tillers, conditions will progressively more acute

aber 8.5502 vated because not a hinge drop of whiskey sold since October 8, 2

‘is being replaced. The

__ commodities.

: ‘3. There can be no solution of the present shortage until beverage

production is resumed. : 4. Black markets and other violations resulting from the liquor are condemned ‘by the res ible membtis 0 just as severely as they are by | :

We know of no other industry in America which facilities 100% to war work...

: that its consum whiskey must be curtailed, as has its consumption of all other

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" is accounting

for over 1 billion dollars in Federal and State taxes annually

current demands EF oA, ers en you consider all these facts, isn't it fair to ask and coopera tion under the present diffi ilt conditions?

Are the profits of the distilling industry larger than |

. Why do distillers continue to advertise their prod-. ucts when retailers have such meager supplies?

a 9 How tong would this supply lust ut the present un 18:—dsit true that tar ge distillers are trying to-buy addi: — ier

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