RENEE MONTAGNE, HOST:

And now to a brewing battle in Nebraska. A Native American tribe sued Anheuser-Busch, Pabst, MillerCoors, among others, accusing them of illegally selling millions of cans of beer each year in the town of Whiteclay. That town borders the Pine Ridge Indian Reservation, which is officially dry. The Oglala Sioux tribe's federal case was thrown out. Now the tribe is considering what's next: legalizing alcohol on the reservation or continuing the court fight. Robin Wisch reports.

ROBIN WISCH, BYLINE: The town of Whiteclay, Nebraska has just one central road. There is a grocery, a couple of abandoned buildings, and four liquor stores. Lying on sidewalks here, passed out against storefronts day and night, are some Native Americans who come to Whiteclay every day to drink.

UNIDENTIFIED MAN: (Unintelligible)

WISCH: But this group of about two dozen regulars is one piece of the Whiteclay alcohol puzzle. Each year, those four stores sell what amounts to four million cans of beer. And who lives in Whiteclay? According to the census, 11 people. That's right - only 11 residents in a town that sells four million cans of beer each year.

TOM WHITE: Now, what happens to all that beer?

WISCH: Nebraska lawyer Tom White filed a lawsuit against the beer makers and those stores on behalf of the Oglala Sioux. The suit was dismissed. But White says the federal judge acknowledged the tribe's claims and left the path open to continue the fight in state court. White says nearly all the beer sold in Whiteclay is smuggled across the border onto the Pine Ridge Indian Reservation where 40,000 people live.

WHITE: Well, there are 11 people. There's three houses in Whiteclay. It can't be drunk in public, but it is. And it can't be brought into the Pine Ridge, but it is, openly, right in front of the retailers, and everybody knows it.

WISCH: Lawyers for the beer makers won't comment for this story. But they asked the federal court to dismiss the suit, arguing it would force the stores to discriminate against Native Americans, and that the tribe has no legal standing to sue. A few miles east of Whiteclay, Gayle Kocer runs one of the few addiction centers serving Pine Ridge. She too says suing beer makers isn't the answer.

GAYLE KOCER: It's not Whiteclay's problem and fault, it's not the state of Nebraska's fault. We as people have to make this choice to get in there and do something.

WISCH: Kocer points to Oglala Sioux leaders and suggests they could slow the flow of alcohol by setting up checkpoints on the road from Whiteclay. But Pine Ridge has been dry since 1832. In the 1970s, alcohol was legalized but the ban was quickly restored after a public outcry. Today, some younger tribal leaders think the ban should be lifted, but many elders continue to resist that. Kocer says tribal leaders need to acknowledge the scope of alcohol addiction here and look to other tribes for help.

KOCER: No, we're going to ask for money from the state of Nebraska and from all those beer companies because they're destroying our people. Well, guess what? This has been going on for generations.

WISCH: Frank LaMere is a longtime activist and a member of the Winnebago tribe on the other side of Nebraska. He says alcohol has become a commodity on the reservation and there's incentive on both sides of the border to maintain the status quo.

FRANK LAMERE: It's no different than what we see in the poorest parts of Central America. Whoever controls the flow of that alcohol controls much. It controls state government, controls county government, controls tribal government. And I've said it. It controls all of them.

WISCH: Fellow Winnebago member Lance Morgan agrees. Morgan is a Harvard Law School graduate who has studied Indian law. He says ultimately the property rights of the store owners are being valued over tribal law and the rights of Native Americans.

LANCE MORGAN: Any time you talk about property rights to Indians, it's sort of a joke to us, right? I have a map on my wall of us owning Wisconsin before we got moved to that small, tiny corner of northeast Nebraska.

WISCH: Morgan says Nebraska would have shut the liquor stores down in Whiteclay a long time ago if the stores had a different customer base.

MORGAN: If it was anywhere else, it would have been hammered down. If it was any other group - if it was white people laying in the streets and Indians selling to them - well, hell, they'd have the cops in here. They'd try to shut us down, they'd take us to court. So it's just that for us it's just obvious and ridiculous and ironic. And in the end - tragic.

UNIDENTIFIED PEOPLE: (Foreign language spoken)

WISCH: As the sun sets in Whiteclay, a couple of people are chanting as they mill around on the steps of a liquor store. That sad ritual will continue tonight and every night, so long as the political and economic battle over who's to blame for alcoholism on the Pine Ridge continues. For NPR News, I'm Robin Wisch.

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