Starving the Goose

New Yorkers had a rare chance last week to relive a little bit of the old Prohibition days. In Manhattan's glittery Longchamps Restaurants. Inc., customers toting bottles were given free soda, ginger ale and "fresh, clean ice." This was not because high-priced Longchamps liked to give things away. It was caused by the loss of its liquor license, which was taken away because of Proprietor Henry Lustig's conviction of income tax fraud (TIME, July 1).

As no big restaurant can make money in New York without selling liquor, the free set-ups were Longchamps' way out. No one thought that the chain, which grossed some $13,000,000 in 1946, would find it very successful, the cancellation caused more embarrassment to the U.S. Government than it did to Lustig. Having paid about $4,500,000 in back taxes and penalties so far, Lustig, who has a four-year prison term ahead of him, could not be embarrassed much more. But the Government, still trying to collect some $3,250,000, may have a long wait unless Longchamps makes money.

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