The sun., 1896-08-02
h1oUoR TAX AND PERCENTAGE
The Trade Rotation Between the Two
Which Is Not Generally Understood.


, Which Is Not Generally Understood.
Raiues Liquor Tax bill when pending in
Albany which the enforcement OF the meas
ure has dspelled, arose over tho question.
How can a liquor dealer who pays with df-
flculty $3.50 SIS. as the case may be. for
his years license afford to pay Ss00' Orig
inally. and for many years. the license rate
was 5000 year for ordinary saloons and only
$50 for ale and beer saloons. Then the rate for
the latter was raised to $50, and subsequently
the Board Of Excise. which went out of office oil
May ], raised the ale and beer rate to S75, and
the ratio foe ordinary saloons to $3.50. The
jump from these figures to $500 for all saloons.
hotels. restaurants. and ale and beer shops in
dIscriminately, was big one. and 1t was cur
renty reported and generally believed that forty
per cent. or more OF the city saloons would In
consequence of this suddenly Increased tax go
out of business-a consideration which recon-
ciied many OF the saloon keepers to its pay
mcnt. But the contrary OF what was expected
has occurred. There has been a relatively small
decrease in the number of Saloons and what 8
most surprising Is that many Of those which
formerly paid a tax OF s75 now paying $500
without apparent difficulty, whereas some of
those who paid $3.50 have closed.
The explanation OF the matter is simple
enough to those who understand the relations
OF the big breweries and their clients the retail
dealers. On all the lager beer sold by the brew
ers to their customers 1t Is usual to deduct
percentage which represents the profit of the
saloon man on beer above and beyond the DIFF
ference between the cost OF the beer by the keg
and tho selling price of the beer by the glass.
In other words. II a brewery furnishes TO o
saloon keeper 500 worth OF beer the reserve
percentage usually 10 per cent, though some
times as low as 10 ana sometimes as high as
2oJ Is credited TO the customer toward tho pay
ment OF his mortgage to the Drawer. or, more
generally. one half Is so credited and the other
half goes TO the etail saloon man In cash. Thus,
on draught or "Rrowler" " trade II has long been
the custom of saloon men TO sell TO those OF tho
consumers who drink from cans beer at cost
'grOwler " trade amazingly. But the boes
brewer lost nothing from 1t, for IL tho retail
saloon man made no profit on cans or pitchers
the brewer did, and thus In fact, the retail
dieman- to help pay OF his mortgage, Since
the Raines bill went into effect the brewers
have simply applied the former percentage
TO the payment OF the annual liquor
tax. This tax amounting to $500 . year.
would require Sl6.3s week from each saloon
man. For tho sake OF uniformity an arrange
ment has been generally entered into between
the beer brewers and their customers whereby
the even sum OF $40 a week Is applied to the IL
ceuse, as Il is still called, and the brewer, in
much OF II as is necessary, for the Ratles law
permits the taking out Of a license At tho be-
Rinning of any month prior TO May !, 1907 by
the payment of the pro rata amount. The
Ing more OF II than they used to, and OF tho first
profit they get part, for In the form OF per-
centARe it goes 10 the brewery as the percent
age from the can trade always did. AA