The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-12-17
Both Favor Increasing the Tax on Spirits IS
Cents Gallon. Which Would Give MIL
ions to the Democratic Octopus
Figures Showing the Cost of Manufact-
uripg the Drink That Inebriatea
Whisky Would Be Almost Cheap as Milk but
for Uncle Sans Tax-How the Subject ID
Viewed by Kentucky Distillera


Proposed Increase I'm Tax That Would Ada
Millions to the Pockets Of DistiIIers4
Special to the Indianapolis Journal
WASHINGTON. Dec. 16-There is CON.
siderable comment over the fact that the
biggest whisky locality in the United
States or the world Is the one from which
comes q proposition to Congress to raise
the tax on whisky. Representative Owen
Scott. of Bloomington. Ill, has presented
bill SO increase revenue tax on dis
titled spirits from 80 cents per gallon to
81. .25 per gallon. AS Mr.. Scots lives only
forty miles from Peoria. the whisky center
of the country, it is naturally presumed
that he reflects the wishes of the people In
his immediate vicinity. Collector Starr's
fifth Illinois revenue district paid TO
the government S20 S2S, ,247 In taxes on
liquor during last year. according 20 o re-.
cent report Of Commissioner Mason. This
was moro than twice as much as the liQuox
taxes paid by the banner district of Ken.
tucky. ltwas almost % per cent Of the en-
tire internal revenue collection of the gos.
eminent 1t might be presumed, therefore.
that the localities paying this vast sum in
revenue taxes wouid desire the tax re-
duced instead of increased, as Mr.. Scotts
bill proposes.
Mr. Scott has laid his bill before Mr..
Springer, chairman of the ways and means
committee of the House, ana it ID
said that Mr.. Springer thinks the plan
of an increased whisky tax is q good
one, Mr. Springer 10 not yet ready
to discuss the merits of the question.
but. in general way. he agrees
with the other tariff leaders OF the House
that there must be some increased revenue
Tor the govern ment. and that an added
whisky tax might as well supply this rev.
Con-
gressional district Is also very near tho
whisky producing center. Messrs. Springer
ana Scott are moving. however. solely with
view TO increasing the revenue Of the
government. So far as can be learned here
the liquor producing fraternity would NOS
favor an increase in the tax. On the con-
trary, it has urged Congress to reduce the
tax to 20 cents per gallon.
Few people are aware OF the fact that
the present tax of 90 cents gallon on
liquor is tax of 200 to 800 per cent of its
value, and In some cases the tax represents
200 per cent. of the value of the article.
Bourbon whisky 10 made at 30 cents per
gallon and rye ct 45 cents. while the Or
dinsry article. known as spirit goods" 10
produced for ~ cents per gallon. Yet these
various grades ell pay o uniform tax of 30
cents gallon. The remarkable percent
age of tax over the value of the article IL
shown by an actual bill of goods from q
Peoria distiilery, which has been presented
to the congressional committee. 1t 10 Rs
follows: "Sixty-five barrels No. 1 spirit.
6.64z.75 proof gallons. at 13lac. s76245: tax
on 5.64L75 proof gallons at 80 cents. S.
0S2g7; total, IS. .S45.42. or cost of goods in
eluding barrel. profit to distillers etc..
$762 45: tax exacted by the government,
about 200 per cent. s5.0S2. 81" 1t was By
this showing that the liquor or-producera
urged Major Mckinley TO reduce the tax to
25 cents per gallon. It is said that this
product amounts TO 1900 900 gallons so
that an increase of IS cents per gallon on
the tax would increase the vslue of the
present stock by several million dollars.
since, of course. no additional tax could be
collected upon whisky out of bond.