In the space of a year, the Jug Champions had become the Warlocks and Dana Morgan Jr. was playing bass. The Warlocks borrowed their instruments from Dana Morgan Sr. and practiced in the store.
Soon, though, Morgan was out and Phil Lesh was in. With his son out of the band, Morgan Sr. was getting tired of the Warlocks practicing in his store. Besides, he was worried they were starting to smoke marijuana, he said in a 1988 interview.
"I decided I just hated the noise they were making," Morgan said in the same interview. "I can't understand why they're famous today. I put them out in the carport (to practice), but they kept sneaking back in. Finally, I got so tired of them, I sold the instruments." (Dana Morgan closed his shop in the early 1980s and retired. He died about three years ago.)