each of these supports a family of four we find that two million people are dependent on the liquor industry for their livelihood. One may venture the assertion that the manufacture and sale of no other single commodity directly affects the lives of so great a number of people.

SECTION 5. TAXATION.

Not only is the liquor industry of tremendous importance viewed in its direct relation to society as one of the great industries of the country but it has a further significance because under our present governmental policy, the government is deriving a large and an increasing proportion of its revenue from this source.

The revenue derived from liquor manufacture and traffic consists of the general tax levied on real and personal property employed in such manufacture and traffic; the United States internal revenue tax; the customs duties on imported liquors; the license fees or special taxes collected under authority of the States, counties and municipalities, and the fines collected for violations of the internal revenue laws and of the laws of the states, counties and municipalities controlling the manufacture and traffic.

Table VIII shows the facts as estimated for 1896 by the department of labor. The total taxes as given in the twelfth annual report were $183,213,124.51. It will be noted in the table that the United States internal revenue tax has been increased from $114,450,861.77 to $179,401,328.47, or $64,950,456.70. It is safe to argue that there is some, if not a proportionate increase in the other items which go to make up the total. Conservatively estimated, therefore, upwards of $250,000,000.00 is annually derived from the taxes on the manufacture of and the traffic in alcoholic liquors. The total revenue derived from all sources and for all purposes in the United States aggregates $1,250,000,000. It may be stated with some degree of confidence therefore that from one-sixth to one-fifth of the money expended for governmental purposes in the United States is drawn from

the liquor business. There is every reason to believe that these figures are below rather than above the actual amounts. This enormous total emphasizes the degree to which the liquor industry has woven itself into the structure of not only our industrial and social, but also our governmental life. Here is a phase of the liquor question which must be taken into account by any proposed change in regulation of this traffic. There is another phase of the subject which will bear emphasis at this point. It has been stated by students of our system of taxation that the amount of revenue derived from the liquor business could be doubled without enhancing the price to the consumer. While this fact was pointed out to show the abundance of our fiscal resources, it must be apparent that the same amount which would be available for revenue purposes would be equally available for political corruption. It requires no great foresight, therefore, to warrant the prediction that in case the permanence of the liquor interest should be seriously threatened by proposed legislation, a powerful opposition would be met with on all sides and that opposition would be abundantly supplied with funds and influence with which to maintain its contention.

CHAPTER II.

THE EFFECTS OF THE LIQUOR TRAFFIC.

Regarded as a unit in the various phases of its manufacture and distribution-in the numberless ways in which it enters into our social, industrial and political life-the liquor industry is among the first in importance. It is of the most vital consequence, therefore, to know accurately the effect of this deeprooted institution on the society that gives it life. The only serious or extended effort yet made by any state or governmental agency to study it in detail is that undertaken by the Massachusetts Bureau of Labor and reported in the twenty-sixth annual report of that bureau.

The scope and method of the investigation may be best stated in the language of the report: "The collection of information occupied twelve successive months. It was prosecuted through the different state institutions for the reception of paupers and the insane and through the prisons and courts of the commonwealth. All persons committed to these institutions or passing through the courts for criminal offences were directly interviewed by the agents of this department and their testimony taken concerning their habits with respect to the use of intoxicating liquors and as to the habits of their parents, guardians or others who may have exerted a direct influence upon them. The results of the investigation thus rest upon the direct testimony of those immediately concerned, except in the case of the insane who for obvious reasons were incapable of giving direct information themselves. Respecting the insane, therefore, the testimony of others has been taken and no effort has been spared to bring out full and reliable data covering the special

points of inquiry respecting each of the classes referred to. The inquiries were carefully formulated before beginning the investigation and the work carried out by agents of the bureau especially selected for the purpose."

The report covers 3,230 returns as to pauperism, 26,672 as to crime, and 1,836 as to insanity. The evidence condensed in the tables, therefore, rests upon personal interviews with respect to 31,738 cases of pauperism, crime and insanity and comprises the largest amount of direct information, that is to say, information secured by personal interviews with the persons immediately concerned that has ever been obtained.

The conclusions of the report occupying over four hundred pages are summarized as follows: "Out of 3,230 paupers, 2,108 or about 65 in every 100 were addicted to the use of liquor. The excessive drinkers numbered 505, about 16 in every 100. Of the total abstainers 429 were minors; 281 being under 10 years of age. There were also 31 minors addicted to the use of liquor. Excluding all the minors whether total abstainers or not, we have 2,752 paupers of adult years of whom 2,077 or about 75 in every 100 were addicted to the use of liquor, including 504 excessive drinkers and 1,573 drinkers not

classed as excessive.

Of the whole number of paupers, nearly 48 in every 100 had one or both parents intemperate. Of the whole number, about 39 in every 100 attributed their pauperism to their own intemperate habits; about 5 in every 100 considered their pauperism due to the intemperance of their parents, one or both; and about 1 in every 100 attributed their pauperism to the intemperance of those upon whom they were dependent, other than parents.

Of the whole number addicted to the use of liquors, namely, 2,108, there were 25, or about 1 in every 100 who used wines only; 417, or about 20 in every 100 who used lager beer or malt liquors only and 1,628, or about 77 in every 100, more than three-fourths of the whole number, who used all kinds or at least two kinds of liquor.

Of the whole number of paupers (without discrimination as to sex) 2,005 or about 62 in every 100, used tobacco. Of the

males no discrimination being made as to ages, nearly 75 in every 100 used tobacco. Only three paupers were found among the whole number who used drugs intemperately.

CRIME.

Out of 26,672 convictions for various offences during twelve consecutive months, 17,575, or about 66 in every 100 were convictions for drunkenness; and 657, or about 2 in every 100 for drunkenness in combination with other offences. Hence 18,232 convictions, or about 68 in every 100 included drunkenness either wholly or in part.

In 21,863 cases, about 82 in every 100, the offender was intoxicated at the time the offence was committed. In 8,440 cases in which drunkenness did not form part of the offence, that is, in which the offender was convicted of a crime other than drunkenness, 3,640, or about 43 in every 100 were cases in which the offender was intoxicated at the time the offence was committed. Of these 8,440 cases, 4,852, or about 57 in every 100, were cases in which the offender was intoxicated at the time the intent was formed to commit the offence.

Out of the whole number of cases, namely 26,672, there were 22,514 in which the intemperate habits of the offender led to a condition which induced the crime. These constitute about 84 in every 100. Disregarding convictions connected with drunkenness there remain 4,294 convictions for other crimes committed under conditions created by the intemperate habits of the criminal. These constitute nearly 51 in every 100 of the total number of convictions for crimes other than drunken

ness.

In 16,115 cases about 60 in every 100, the intemperate habits of persons other than the offender were said to have been influential in the commitment of the offence, and 3,611, or about 43 in every 100 of the total convictions for crimes other than drunkenness were of this class.

Of the total number of convictions, namely 26,672, the number of offenders addicted to the use of liquor (no discrimination being made as to sex) was 25,137, or about 94 in every 100.