Cecily Zamora
Between 1935 and 1964, a law was passed in the US requiring that all liquor bottles be embossed with the text, Federal Law Forbids Sale or Reuse of This Bottle. This law was enacted to prevent the refilling of bottles by black market businesses, as bootlegging was a lucrative business alongside the legalized alcohol business. The law was repealed in 1964, but some bottles continued to carry the same warning due to the expense of retooling.
| Characteristics | Values |
|---|---|
| Purpose of the law | To prevent the refilling of bottles by black market businesses |
| Date the law went into effect | 1935 |
| Date the law was repealed | 1964 or 1965 |
| Who the law applied to | Glass manufacturers |
| Who the law impacted | Black market businesses, distillers, and consumers |
| How the law was implemented | By requiring glass manufacturers to emboss the text "Federal Law Forbids Sale or Reuse of This Bottle" on alcoholic bottles |
| Reason for the law | To prevent tax evasion and ensure consumers received what they expected when purchasing bottled spirits |
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What You'll Learn
Prohibition and the illegal trade in alcohol
Prohibition in the United States was a nationwide constitutional ban on the production, importation, transportation, and sale of alcoholic beverages from 1920 to 1933. Despite the ban, bootlegging remained popular and lucrative. After Prohibition ended, the government wanted to tax alcohol heavily. To prevent tax evasion, a law was passed in 1935 that required alcoholic bottles to be embossed with the text, "FEDERAL LAW FORBIDS SALE OR REUSE OF THIS BOTTLE". This law remained in effect until 1964, though some bottles continued to carry the same warning after that date due to the expense of retooling. The law was intended to prevent the refilling of bottles by black market businesses.
The bottles with the "FEDERAL LAW FORBIDS" embossing are now considered antiques and are sought after by collectors. The markings on the bottom of these bottles can be used to identify the original contents and age of the bottle. For example, the ""D-1" marking indicates that the distiller company was "National Distillers", while the ""56" marking is a "Liquor bottle permit number" assigned to the Owens-Illinois Glass Company's factory in Charleston, West Virginia. The first two digits on the bottom of the bottle typically indicate the bottle permit, while the second two digits indicate the year of manufacture.
Today, the TTB (Tobacco Tax Division) in the United States continues to enforce strict regulations on the packaging and sale of alcoholic beverages. All spirits companies must submit their packaging to the TTB for review and approval before the spirits can be bottled. The TTB regularly purchases bottled spirits from retail outlets and subjects them to laboratory analysis to ensure compliance with labelling and fill-level regulations.
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Bootlegging and black-market refilling of bottles
After Prohibition ended, the illegal trade in alcohol continued, especially in dry areas. Bootleggers and black-market businesses refilled bottles with illegal or unregulated alcohol, often stretching their profits by adding water or mislabelling cheaper drinks as more expensive brands. This practice led to the implementation of laws requiring alcoholic bottles to be embossed with the text "Federal Law Forbids Sale or Reuse of This Bottle," which went into effect in 1935 and was repealed in 1964.
The legislation aimed to prevent the refilling of bottles by black-market businesses and protect consumers from potentially harmful or inferior products. It also served as a deterrent for legitimate distillers, discouraging them from using "fancy" containers that might be associated with bootlegging operations. While the specific law requiring the embossing on bottles has been repealed, the practice of bootlegging and black-market refilling of bottles still exists today, although on a smaller scale.
The impact of bootlegging and black-market refilling of bottles has been significant, with far-reaching economic and social consequences. It has resulted in losses for governments due to unpaid taxes, with states like Virginia losing up to $20 million annually from illegal whiskey smuggling. Additionally, the illegal trade has contributed to the rise of criminal enterprises and gangs, leading to increased violence and law enforcement challenges.
Today, antique bottles embossed with the "Federal Law Forbids" statement have become collectibles, attracting the interest of historians and enthusiasts. These bottles provide a glimpse into the past when the battle between law enforcement and bootleggers shaped the alcohol industry and influenced the legislation surrounding it.
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Taxing alcohol and dodging taxes
Alcohol is one of the most highly taxed products in the United States. Alcohol taxes are selective sales taxes imposed on the purchase of alcohol. Alcohol taxes are sometimes called a corrective or "sin tax" because they are levied, in part, to discourage alcohol consumption. State and local governments tax cigarettes, marijuana, and soda in a similar way.
In 2021, state and local governments collected $8.2 billion in alcohol taxes, or 0.2% of general revenue. In 2021, most alcohol tax revenue (83%) came from state taxes. The producer or seller of the product typically pays the tax on the wholesale transaction, but it is assumed that the tax is then included in the final purchase price and passed on to the consumer. Alcohol excise taxes are per-gallon taxes rather than a percentage of the price. The rate is based on the type of alcohol, with liquor taxed at a higher rate than wine, and wine taxed at a higher rate than beer. In some states, tax rates also vary based on the location of the seller and the quantity produced. For example, the District of Columbia levies per-gallon taxes on beer ($0.09), wine ($0.30), and liquor ($1.50), and also levies a 10.25% alcohol sales tax on the final purchase price.
In addition to the existing excise tax, some states and localities levy a special sales tax on the final purchase price of alcohol. The current categorical approach to alcohol taxation in the US has led to calls for tax reform. Alcohol production has become one of the most innovative sectors in the US economy, with new products blurring existing category lines. An alcohol by volume (ABV) tax has been proposed as a way to simplify and modernise alcohol taxation.
From the 1930s to the 1960s, US federal law required that alcoholic bottles be embossed with the text: "Federal Law Forbids Sale or Reuse of This Bottle". This law was enacted in 1935 and repealed on 1 December 1964. The aim of this legislation was to prevent the refilling of bottles by black market businesses.
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Liquor bottle permit numbers and date codes
In the United States, liquor bottle permit numbers and date codes were mandated by federal law starting from 1934 or 1935 until the 1970s or 1980s. The law required that the permit number of the manufacturer, the year of manufacture, and a symbol and number assigned by the Commissioner of Internal Revenue be "blown legibly" into the bottom or body of each liquor bottle. The date code typically consists of two digits, but sometimes only one, and usually indicates the year the bottle was made. The permit number and date code are often separated by a dash or space, with the permit number tending to appear on the left side of the bottle base.
The purpose of these markings was to prevent the refilling of bottles by black market businesses during the Prohibition era, which lasted from 1920 to 1933. The markings made it possible to identify the manufacturer and year of a bottle, helping to ensure that liquor bottles were not reused for illegal purposes.
For example, on a Jim Beam "Genie bottle" whiskey decanter made in 1964, the "119" is the liquor bottle permit number assigned to the Wheaton Glass Company, and "64" is the date code for the year 1964. Similarly, on a bottle found in Ohio with a federal law forbids resale or reuse marking, the "64" is a liquor bottle permit number assigned to the Alton, Illinois plant of the Owens-Illinois Glass Company, and "59" is a date code for 1959.
These markings can be very useful for identifying the age and origin of antique liquor bottles, although it's important to note that the presence of these markings does not necessarily indicate that a bottle was used for liquor, as similar markings are sometimes found on bottles intended for other purposes.
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Antique bottles and their resale value
Antique bottles can vary significantly in their resale value. Their value depends on various factors, including their age, rarity, condition, and shape. Some antique bottles are worth thousands of dollars, while others may be worth much less.
Bottles with certain markings, such as "Federal Law Forbids Sale or Reuse of This Bottle," can be dated to the period between the 1930s and the 1960s. This law, enacted in 1935, was aimed at preventing the refilling of bottles by black market businesses following the era of Prohibition. These bottles can vary in value, with some selling for around $20 to $30.
The value of antique bottles also depends on their type and the company that produced them. For example, antique Coke bottles can be worth $300 or more, especially if they are commemorative editions or particularly old. On the other hand, bottles from well-known cola companies can sometimes be worth very little. Antique medicine bottles often sell for between $15 and $45, while ink bottles usually fetch between $8 and $20. Milk bottles typically sell for $10 to $20, although some rare ones can be worth hundreds of dollars.
Some of the most valuable antique bottles include a rare olive green antique flask that sold for over $6,700 at auction due to its colour, perfect condition, and double eagle design. Another valuable bottle was a decanter made by the Keene Glassworks Company, which sold for over $5,200 because of a manufacturing error that created a crooked neck. A Victorian poison bottle featuring a skull and snake design in opaque blue glass sold for just under $3,000. Antique perfume bottles, especially rare ones, can also sell for thousands of dollars, although most fall within the $20 to $200 range.
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Frequently asked questions
Between 1935 and 1964, a federal law required that alcoholic bottles be embossed with the text, "Federal Law Forbids Sale or Reuse of This Bottle." The law was enacted to prevent bootlegging and black-market refilling of liquor bottles.
There are no legal repercussions for reusing old bottles. The federal law forbidding the reuse of bottles was repealed in the 1960s.
These bottles are antiques and can be sold for anywhere between $5 to $30 USD.
The first two digits on the bottom of the bottle are the bottle permit number, and the second two digits are the year of manufacture. For example, "D-2 40-56" indicates the bottle was manufactured in 1956.
