The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-02
DISTILLERS PROTEST
They Don't Want the Tax on
Whisky i'm Bond Increased.
Beggs, of Terre Haute, and Werner, of
Peoria, in Washington to Oppose
the Proposition.
INTERVIEW WITH HOLMAN
His Views on the Various Methods
Of Raising Revenue.
He Thinks Expenditures Could Be Cut
to Meet the Deficit Talk with
Senator Voorhees,.
to the Indianapolis Journal.

WASHINGTON, Dec. III. w. Beggs,
who is connected with Crawford Fair
banks, the Terre Haute distiller, slipped
into Washington to-day, and, with a view
to keeping his presence a secret, did not
register at the Arlington when he took a
room there. Ex-Mayor Warner, who is
with the great distilling interests, at Poor
ia, also arrived at the same time. 1t soon
became noised about that they were here
to look after the proposed increase Of the
whisky tax. The proposition has been
made to make the whisky in bond pay the
increased tax, and the d~istillers and the
trust do not want bonded whisky to pay
the increase.
Just now is the critical moment in the
consideration of the whisky tax question.
Friends of Beggs and Warner say the
trouble is with Secretary Carlisle. who OPP
poses any increase of the tax, because it
would diminish the consumption of whisky,
which is the principal product of Ken
lucky. the Secretary's own State. Any in
crease of the whisky tax would put up the
price of the article in bond to that extent.
If it did not have to pay the increased tax
Of course. it would be a big thing to the
whisky trust, which iex-Mayor Warner
represents. The whisky men and some Of
the best lawyers here contend that the
government has no right TO make the
whisky in bond pay the increase of tax,
as a contract was made between the owner
and government at the time the whisky
was put in bond to the specific effect that
the article was to remain I'm bond three
years or under and. when taken out, to pay
80 cents a gallon tax-no more, no less. 1t
looks as though the tax would be increased
somewhat and the whisky in bond excepted
from the increase.
HOLMAN'S VIEWS.
Representative William s.. Holman, of In
diana, said upon the subject to-day:
IAN increase of the tax on spirits would
be most So tisfactory to our people gener-
ally If 1t vas not that unless the tax is
imposed on the stocks on hand in the
bonded warehouses, the Increase would
enormously benefit what is known as the
whisky trust without any present benefit
TO the revenue. If the tax was imposed on
would be taken out of the bonded ware
houses before the law would take effect.
very well, and our experience with n
higher tax was very unfortunate, resulting
in the most widespread system of fraud
ever known to the country. 1 think Con-
gress should hesitate to increase the tax in
time of peace. The present tax on beer
and domestic tobacco are fairly reasonable.
They are about the only luxuries the labor
ing people of our country have. 1 do not
think that the condition of our affairs
WOulQ JUSTLY an increased taxation on
either. An income tax, it seems TO me, is
the most reasonable mode OF raising the
necessary amount of revenue.
1.-THE proposed revenue tariff bill, which
the country is now considering will, of
course. result in a loss of revenue, and,
upon the basis of the present internal rev.
enue laws. would result in a deficit Of
some 40,00O,0 900 or $4,000. 900 on the present
basis of expenditures. There are practical
be made uD. BY issuing bonds and thus
increasing. the public debt; by an income
tax: which would realize from SO,OO,G0
to s75. 600, 900. or by a reduction OF expendi-
lures. In regard to the bond issue, I do
not believe any political party would sur
viye a material enlargement of the public
IF the expenditures of our government
are kept up to their present rate. 1 think
the increased revenue required should be
provided by an income tax.
1T is a just and equitable method of
raised through an income tax, without
scrimping the homes of our people. The
act of 1862. the war measure, exempted
only incomes below $500. We could well
afford TO extend the exemption now as high
as $500 or $1,000, and yet with a very
moderate rate of tax the revenues would
be ample. Many persons favor one rate on
all estates. l think the larger the net in
come of a citizen may be the larger the
rate of taxation should be imposed.
IF the present Democratic Congress,
which is now wholly responsible for the
expenditures of the government. would go
fculty in reducing the expenditures to o
point where, even with the present rate
of internal revenue and proposed reduction
OF tariff taxation 1t would furnish ample
means to support the government and meet
the requirements of the sinking fund. We
fund. it YVES not intended as a guarantee
TO the holders of public securities, but
people that the public debt should not be
permanent. but should be e~xtinguished on
the reasonable basis, provided by the act
of 1862. under which the debt would be
paid off within q reasonable period of time.
Exemption from debt is one of the guaran-
tees of frugal government and frugal gov
eminent Is the only guarantee we have of
the perpetuation OF free institutions"
WHAT VOORHEES, BELIEVES IN.
Senator Voorhees,, who returned from his
| home In Indiana to-day, declined to be in
terviewed concerning the prospects or the
merits of the tariff bill. saying that he had
not seen the bill, except as it had appeared
in the newspapers. He said, however, Il
have been through two tariff lights In the
Senate, and feel familiar with the subject
as a whole. 1 can only say, from my pres
ent knowledge of the measure, that the bill
seems to be in accordance with the prin-
ciples of the Democratic party and the poll
cy of the party as enunciated in the last
Democratic PLATFORM, and IL this should
prove upon closer examination TO be the
believe in the ad valorem method, in the
tariff for revenue only and in free raw
materials; ana i understand those 10 be
the underlying principles of the Wilson bill"
Upon being asked whether the Senate
would take the question up In any shape
before the bill should leave the House,
MIR. Voorhees, said he thought not, except
that members Of the finance committee
would, OF course. familiarize themselves
with the provisions OF the bill and in a
general way prepare themselves for the
work of putting it through. He said that
he thought the bill would be IN shape to
present TO the Senate soon after the Christ
mas holidays. and that after it should
reach the Senate there would be ample op-
portunity for discussion and for hearings
from special interests when requested and
where they seemed OF sufficient Importance
to justify much consideration
Whether there will be any legislation at
tempted for the immediate relief of the
treasury Mr.. Voorhees, said he thought
would depend largely upon the wishes Of
Secretary Carlisle. He. himself. had moth
ing to propose until he knew what the
treasury needed. He thinks the country
Is rallying from it's recent depression. and
saws the best evidence of this fact Is found
in the condition OF the railroad business,
which has improved very much recently.
The meeting of the ways and means com
mittee to-day was brief. The estimates to be
submitted showing the probable difference
in revenue that would result from the new
bill were not vet complete and the commit