RENT SEEKERS AT WORK. Liquor licensing boards are marvelous examples of cartel management as well as good places for aspiring investigative journalists to start their careers. The one in West Allis, Wisconsin, is no exception.

The Common Council is expected to decide Tuesday night whether to lift its quota on liquor licenses so a Milwaukee business can open an 8,000-square-foot liquor store at 10711 W. Oklahoma Ave.

The quota, of course, has the effect of generating monopoly rents, which, of course, are dissipated in rent-seeking.

If approved by the required two-thirds vote of the council tonight, it would be the first time in its 10-year history that the quota has been lifted for a liquor store. Only two licenses have been granted since the quota was imposed, according to City Attorney Scott Post, both for restaurants.

But opposition is mounting from competitors, nearby residents and prior applicants who were turned down for licenses because of the quota.

"They told us that if we got a license, they'd have to give one to every business that applied or they'd have lawsuits on their hands," said Linda Lutz, co-owner of the West Allis Cheese & Sausage Shoppe, which sought a license so it could sell wine and specialty beers in its gift baskets.

"Well, they will have a lawsuit," Lutz said. "If this man gets his license, we will expect to get ours, and we will go to any extent to get it."

Also objecting is Abdul Khan, who owned K-C Beverage at S. 95th St. and W. National Ave. for 13 years before losing his lease when the building was sold. Khan said he agreed to go into business with Anup Khullar at the W. Oklahoma site but opened across the street after the two spent a year squabbling about lease terms and who had the legal right to Khan's liquor license.


"Now they are awarding a new license?" Khan said. "And their attorney is the son of an alderman?"

Priceless.