During Prohibition, in the 1920’s and early 30’s, the hotel housed the finest speakeasy Austin had to offer.

Scholz Garten
http://www.scholzgarten.net/scholz_history_new-august.html
During prohibition Scholz Garten came up with a non-alcoholic brew in 1921 and called it Bone Dry Beer. Did you notice the very large photo of the bar in the front room (upstairs in the northeast corner) without any beer taps or beer advertisements? The photograph was taken during prohibition. Food sales, for obvious reasons, became more important during prohibition and the menu items included many traditional German and Texas favorites. Food sales increased to more than 50% after prohibition and have continued to be a staple of Scholz’s business. Prohibition, the 18th amendment or Volstead Act, lasted from 1920 until 1933 when it was repealed by the 21st amendment.