A Brief History of the Craven County ABC Board
The Eighteenth Amendment to the Constitution ushered in a period known as Prohibition, during which the manufacture, distribution, and sale of alcoholic beverages was illegal. Passage of the Eighteenth Amendment (The Volstead Act) in 1919 was the crowning achievement of the temperance movement, but it soon proved highly unpopular. Crime rates soared under Prohibition as gangsters, such as Chicago's Al Capone, became rich from a profitable, often violent black market for alcohol. The federal government was incapable of stemming the tide and enforcement of the Volstead Act proved to be a nearly impossible task and corruption was rife among law enforcement agencies.
North Carolina, and particularly the western counties were a hot bed of illegal liquor making activities. Much of the illegal whiskey called “White Lighting” or “Moonshine” made its way north to the nation’s large cities. Sadly, poorly made illegal whiskey caused many to be sick, blind or was a cause of death for many Americans. The transport of this illegal liquor, termed “bootlegging” was to be a major cottage industry in North Carolina during the Depression.
As more and more Americans opposed the Eighteenth Amendment, a political movement grew for its repeal. After much political maneuvering, the Twenty-First Amendment was ratified by 2/3 of the 48 states on December 5, 1933. The law allowed each state to control liquor sales within its own borders. However North Carolina was not one of the ratifying states and with inactivity of enabling legislation was still in essence “a dry state.” While North Carolina was dry, its bordering states of Virginia and South Carolina sold liquor and were “wet.”
In 1934, both Virginia and South Carolina elected to quickly enact laws allowing liquor stores on the border with North Carolina. These stores had many North Carolina patrons. This activity was robbing North Carolina of valuable revenue in time of the worst economic Depression the country was to know. Now North Carolina was a victim of illegal bootlegging and a crime wave based on illegal liquor sales came over the state.
Finally after much coaxing, the North Carolina General Assembly, on May 5, 1935 passed House Bill 1491. This bill allowed 18 eastern North Carolina counties to call an election to let voters express themselves on whether the sale of spirituous liquor would be authorized in their county.
The Craven County Board of Commissioners quickly acted to set in motion a county wide vote on the question to establish an Alcohol Beverage Control (ABC) Board. The vote date chosen was July 4, 1935. By vote 2,263 to 558, more than four to one, Craven County chose to be “wet” and establish an ABC Board on July 8, 1935. Mr. S.W. Pennington, Mr. L.A. Harper and Mr. N.M. Lancaster were appointed as members of the ABC Board. July 10, 1935 S.W. Pennington resigned. He was replaced by Mr. Joe M. Anderson.
The newly appointed three member ABC Board wasted no time in obtaining capital to establish a store at 49 Pollock Street, the Hackburn Building, New Bern (Store #1); and employ a sales staff and purchasing liquor. The renovation work at 49 Pollack St began on July 12, 1935.
However, the State of North Carolina had no liquor to sell to Craven County, as the State ABC Commission and its warehouse system was still months away from operation! This would not keep the Craven County ABC Board from opening. Thus, the ABC Board members reached-out to the existing State of Maryland ABC System to make the initial liquor purchase for Store #1.
Craven County ABC records reveal that the renovation crew on 17 July 1935, “Worked into the late hours and renewing their efforts in the early morning.” Carpenters made rapid headway on equipping the interior of the Hackburn Building for Store # 1 operations. The crew promising the ABC Board that it would open within a week. The renovation work was laborious under the record breaking hot July heat and manual work systems of the day. The store was to be a “walk-in” operation with the clerk picking, selling and packaging the product, not like Craven County’s self-service operation of today.
On July 19, 1935 a train carload shipment of liquor arrived from Baltimore, Maryland at 5:30 AM over the Norfolk Southern Railroad, consigned to the Craven County ABC Board. On the same date Mr. E.C. Rea was named supervisor of the Craven County ABC Board. Also Mr. G. Gaskins was appointed Store #1 manager. Both men went to Store # 1 on July 20 to view the work and arrange for the newly arrived liquor to be stocked. They both agreed that the store would require several more days of work and the 24th of July was the new target opening day.
After some difficulty with drying paint, Store #1 was officially opened for business at 1:50PM, 24 July 1935. It marked the selling of the first legal liquor sold in Craven County since January 1, 1905. The first customer was Mr. Ellis Zaytoun, who purchased a quart of whiskey. Mr. Zaytoun was followed by 66 more customers. Today, Mr. Zaytoun’s family members still makes purchases from Store #1 and other Craven County ABC stores.
Other ABC stores followed as Craven County’s population grew and tourist destination guest requirements increased. Today, five ABC Stores serve the county with stores in New Bern (two stores), James City, Havelock, and Vanceboro.
In 2015, the Craven County ABC Board is estimated to have record sales of over $10.2M and will provide the citizens of North Carolina, Craven County and local municipalities an estimated $3.1M in tax revenue. The annual Craven County ABC Board payroll is over $850,000.