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Show UTAH LIQUOR PROFITS; COST OF OPERATION, HIGH Utah's $12 '4 million dollar liquor business yielded a net profit to the State Treasury of approximately Uvi million for the fiscal year 1947, in addition to more than a million dollars in state taxes levied upon1 liquor sales, according to a Utah! Foundation report released today. I Liquor profits and taxes accounted for approximately 8 per cent of the total revenue for Utah State government. gov-ernment. However, the Utah Foundation report indicates that liquor administration admin-istration costs in Utah are higher than in any other of the sixteen monopoly states -- states which merchandise liquors through public agencies. Thirty two states leave the liquor trade to private merchandising mer-chandising channels, deriving then revenue entirely from taxes and licenses. li-censes. Cost of administration in Utah was equivalent to 7 per cent of total liquor sales in 1946, and rose to 7.6 per cent In 1947. Vermont Ver-mont showed the lowest a dm In is trative costs, equal to 2.30 per cent of total sales. Major factors In the high administrative admin-istrative costs in Utah, according to toe Utah Foundation study, are the relatively heavy expenditures for accounting, wages and salaries, and deliveries. Utah ranked second highest in 1946 in the ratio of 11 quor administration salary cost to net sales among nine monopoly states which report this item. The accounting department of the Liquor Li-quor Commission spent $87,307 In handling 1946 liquor accounts, or $1 Xor every $141 of liquor sold. This compares with $1 out of $325 spent in Iowa, $1 out of $543 spent in Maine, and $1 out of $762 In Wash-in Wash-in ton for liquor accounting costs. These were the only other states reporting accounting costs separately. Delivery costs were cut sharply In 1942 when the Liquor Commission Instituted delivery by state owned trucks within a 100-mUe radius oi the Salt Lake warehouse. Delivery cost was $50.40 per thousand gallon gal-lon In 1938, and was cut to $30.08 per thousand gallons In 1942. However, How-ever, despite continued delivery In state owned vehicles, the delivery cost rose to $52.18 per thousand gal-.lcns gal-.lcns in 1947. The Utah Foundation report notes the absence of any unllorm rules or policy relating to the establishment es-tablishment of prlvutely-operated package agencies In preference to state -owned stores to retail liquors. Complete discretion Is granted by the law to the Utah Liquor Commission Commis-sion to enter into contracts witft private Individuals to operate pack, age agencies, although the law specifier spe-cifier that such agencies are to be established by contract with individuals indi-viduals "engaged In the business" of conducting a retail merchandising store". While it Is the stated policy poli-cy of the commission to establish package agencies where the volume of liquor sold is likely to be too small or temporary to Justify a full-time full-time state-owned store, six of the Package agencies In Salt Lake City and Ogden do a large business than do most state-owned stores. A contract con-tract was entered Into by the Commission Com-mission in 1945 with a former mem-ber mem-ber of the Liquor Commission for a package agency In Sugarhouse. The sales volume of this agency has now become the largest of any pack-ageagency pack-ageagency In the State, and Is ex- ceeded by only six of the twenty state-owned stores. The report also emphasizes the absence of regular field audits and physical inventory checks of stores and agencies by auditors independent independ-ent of the Liquor Commission. Such Independent field audits were made prior to 1942 by the State Auditor's Audit-or's office, but were discontinued during the war years, and have not been resumed. Administrative expenses of the Liquor Commission are not now subject to Legislative control, according ac-cording to the Utah Foundation study, since all liquor revenues are earmarked for the Liquor Control fund to which the Liquor Commission Com-mission has unrestricted access for costs of administration. Only net profits remaining after all administrative admin-istrative costs are paid are available availa-ble for transfer to the state general gen-eral fund, and to cities and counties coun-ties under a million-dollar per year grant made to them by the 1947 Legislature. |