The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-11-21
1t May Not Be Subject to
Revenue.
OBSTACLES IN THE WAY.
An Army of Officials Would Be
Required,
AND BUT LITTLE REALIZED.
The Amount Accruing to the Gov
eminent Would Hardly Pay the
Expenses of Collecting.

tural Commission in this city have reason
to believe that a victory has been won at
the Capitol, and that the members of the
Ways and Means Committee of the House
of Representatives are about convinced
that an internal revenue tax on wines
would be both unwise and unjust.
Since the proposition was first preached
Congressman Geary has appeared before
the subcommittee a number of times to
argue against the proposition. while from
the office of the commission in this city a
great deal of information has been sent
that will furnish inc0ntroyertibls argu-
ments against levying the proposed tax.
III such provision should be adopted by
Congress-" said Secretary Winfield Scott
yesterday, sit would accomplish one OF
two things. Either the wine industry in
the United States would be annihilated or
it would be concentrated in the hands of
a few people. There are from 100000
to 81, 000, 600 gollops OF wine manufactured
in this country annually, Of which more
than 100000 are made in California,
Arizona and New Mexico. In this State
alone there are over 1000 wineries, great
and small. and the enactment of internal
revenue regulations would mean that
Government gauger must be placed In
every one of them, 10 insure that nothing
be lost, or else the small growers would be
forced out Of the business. and it would
become mo opoly in the hands of few
larger vinyardists.
Then too the game isn't aw orth the
trouble. or this annual product of
10000. 600 gallons the average price realized
by the producer is only 10 cents gallon,
and IL a TAX were placed on il equal to the
full amount of its value the returns to the
Government would be only So, 900. 900, and
there would be but little of that left after
the army of officials which would De neces-
sary for the collection had been paid.
But supposlng IL were taxed at the same
propoTtionate rate which Is placed on
beer. In the first cost of this commodity
the tax is reckoned about One-seventh of
amount, and similar law applied to wines
would net the Government something like
100000. which would not begin TO lay
the expense which would be incurred, aud
would be only a drop in the bucket when
compared to the enormous revenues which
are required to meet the demands of the
Government.
"Of course no such paltry tax as this
Will be placed on wines, and the question
simply resolves itself in to this: If any tax be
levied 1t must be equal to the full value of
the wine when it first changes hands, and
that means taxing the industry out of ex-
istence. At present low prices there is n OF
a vineyard in the State that is making a
profit, and with the added burden it does
not take much figuring to see where the
producer would come out.
People not acquainted with the wine
business have very distorted ideas about
it. 1t is incredible to them that new wine
sells for ID cents gallon. They judge by
the fancy prces at which bottled wine
sells. And then. too, 1t is yet very small
industry when compared with Others in
this State. or what it is in some European
countries.
Producers abroad are the people who
will be benefited if such regulations be
adopted. Placing tax on our home
production. and PROBABLY at the same time
reducing the duty on the imported article.
would force us out of the market in
stantly. The first would be sufficient of it.
self. but with the added competition the
wine industry in this State would go cut
of business in a single season.
but there is another reason why the tax
should not be levied, and that is in the
method of the manufacture of wine.
Spirit and malt liquors go through pro-
cess, are put up in packages and are ready
for the market. and though they may not
be sold for years they still remain in the
original package, and it is not difficult for
the Governments 10 put its stamp on them
and collect. Not so with wine. Year
after wear may be consumed before the
work is done. and process after process:
must be gone through First it goes into
casks, then after length of time it must
be clarified and then blended and reracked
two or three times year, and at no time
during this period can it be said to be
wine, for its manufacture is not con-
pleted. If the Government proposes to tax
wines it must follow them through all
these processes and keep an eye on the
product from the time it leaves the wine
press until ii is ready for market.
"Our latest advices, however, are that
the Ways and Means Committee will not
report snch a provision, and with the
prospect for the opening of new markets
for us abroad there are brighter days in
store for the wine industry"