Near beer is held to be a malt beverage containing less than 1/2 percent of alcohol. In many states where prohibition is established the sale of a malt beverage containing less than 1/2 percent of alcohol is permitted. A Minnesota court lately decided that a temperance beverage known as "Malta" is not a violation of the Hanson law of that state, which forbids the sale of malted liquor in any other place except licensed saloons. It was testified that the beverage was not an alcoholic or fermented liquor, and not made from malted grains.

Apparently the case was one of misbranding, as the sale of a beverage under the name "Malta" is clearly an indication that it is made of malt.

The federal revenue agents in northern Illinois in examining what was sold as "near beer" discovered that it contained more than one-half of 1 percent alcohol, which would require that the maker, bottler and retailer of this beverage must all secure government licenses.