State-Stores

The 10,000,000 residents of Pennsylvania began buying their legal liquor from the state in 240 state-owned stores which opened last week. They were not at all sure they liked it when their Liquor Control Board pegged the price of bonded whiskey as high as $8 a qt., announced that it expected to make a 40% to 50% profit on all liquor sales. Consumers immediately began comparing whiskey prices with those in Government-owned Canadian stores and, except in a few instances, found wide discrepancies. Uncut rye was from $6.50 to $8 a qt. in Pennsylvania, from $3.08 to $4.25 in Canada.

One reason why Pennsylvanians had to pay higher prices: They were obliged to absorb a $2 a gal. tax which the Legislature last month put upon all liquor stored in the state. This tax was bitterly contested by Schenley Distillers Corp. who had most of the liquor stocks in the state --6,500,000 gal. Last week the quarrel was settled at the expense of the consumer when the Liquor Board got the company to drop its lawsuit by agreeing to buy all its supply for 80-c- more a gal. than the prevailing wholesale price.

Three other states, Montana, Ohio and Michigan, have government liquor monopolies. In Michigan the first State stores opened last week. Governor Comstock bought the first bottle--a pint of rye at $3.25.

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