PROHIBITION:

North Dakota joined the United States as a dry state in 1889. Minnesota went dry in 1852 but declared it unconstitutional that same year. This benefited the economy of East Grand Forks as North Dakotans crossed the Red to quench their thirst.

With over 35 named bars, saloons and gambling halls, and others known only by location, East Grand Forks entertained farmers, railroad workers, and all others passing through the area. When the stock market crashed in 1929, East Grand Forks continued high liquor sales, American Crystal remained stable, and the Northern Pacific Railroad roundhouse helped support the city’s economy.

In 1937, President Franklin Delano Roosevelt visited East Grand Forks and Grand Forks to promote the benefits of the New Deal. The Record pointed out that “change in prohibition laws, legalization of beer, wheat and corn allotments and…the promise of a new bridge… will rank with the most momentous in world history.” East Grand Forks was ready for the change because, on April 28, 1933, New Beer’s Eve was celebrated with 3.2% beer sales for the first time, with sales topping 100,000 bottles. Two weeks later, the start of on-sale matched the excitement.

Then, the 1940s arrived.

In 1947, Governor Youngdahl closed all illegal bars and ended gambling in clubs and lounges in Minnesota. The goal was to create legitimate businesses to replace them. No East Grand Forks businesses closed during The Depression, but this declaration did a fair amount of damage to our city's economy. The Council’s only choices were to declare the city dry, create a municipal liquor store, or grant private licenses. The reform only allowed five licenses for hard liquor in East Grand Forks.

Written on August 20th, 1947, in the Grand Forks Herald, “Each city council member had voted for their favorite tavern. Whitey’s Wonder Bar and Cafe had taken the first place, and Lealo’s Taproom, run by Roy and Leonard Powers, had won second. Laboda’s, which was operated by Joe LaBoda, took third. Some of East Grand Forks' most popular night spots were denied licenses.

Ruby on the Red: East Grand Forks, Minnesota by Dr. Stephen B. Sylvester. East Grand Forks Centennial Committee East Grand Forks, Minnesota 1988. A Meeting of the Reds, Vol. 1