The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-03-22
FOR FREE ALCOHOL.
Movement to Abolish Tax
on Spirits Used in Arts
and Manufactures.
WOULD BENEFIT OUR TRADE
Increase the Rome Markets and
Extend Our Trade in Foreign
Countries.

Countries.
There Is a movement on foot to secure
the abolition of the tax on alcohol which
is used in arts and medicine. Few people
perhaps realize the extent to which alco-
hol is used in manufactures and useful
arts, and here is a partial list Of the
purposes to which it is put It is used
in artificial lubricants. furniture polish,
finish, varnish. lacauers, enamels, cellu-
loid, zylonite, gunpowders, aniline %colors,
dyeing n preparation of colors, dis
solving resins for hat makers, collodion.
goIdbeaters' skin. filling spirit levels,
floating mariners p extracting
vegetable alkaloids. making vegetable ex-
tracts dry, manufacture of transparent
soap, quick drying paints, preserving OBJ
jects of natural history, chemical and
anatomical research, s%ulphuric ether,
choral hydrate, chloroform, Illuminating
powder, liniments of soap, compound
camphor aconite and belladonna, hyper
sperm oil, etc.
1t is reasonable to declare that alcohol
used in everything except beverage should
be untaxed. because such a tax is on
II Oh I Qtk bhSOiy VI tdAdtlOh sttiSt itT
poses an unwarranted burden upon legiti-
mate industries. Exemption would i'm
mensely increase both our domestic IN
dustries and our foreign commerce and
would furnish a large and growing market
for our agricultural products. 1t would
also furnish employment for thousands
of men and women and would enable our
manufacturers to compete with those of
y ~ - l~~@
market and widening our foreign market
That such exemption is practical is shown
by the legislation in foreign countries.
THE only reason for taxing alcohol at
used in beverages. and public policy
| agrees that such beverage is a proper
subject of revenue taxation
This does net afford amy reason for
taxing alcohol which is mot used as a
beverage, and nobody would ever think
of taxing 1t, If some of it We're not SO
wood alcohol, which is practically the
same as all other alcohol, except that
it has am additional element which IS
poisonous, anad cannot, therefore. be
used INTERNALLY, bears no tax at all.
If, therefore,, 1t could be rendered certain
that alcohol made from other substances,
such as corn, rye, wheat, barley, potatoes
and fruits, were absolutely certain not
to be used in alcoholic beverages, nobody
would for a moment think of taxing it.
To do so would be as absurd as to
tax spirits of t~urpentine, oil, fruit, honey,
meats, or the cereals.
If a Law and regulations can be framed
which will practically insure against
frauds such exemption from taxation of
legltlmately used alcohol, There cam be
no valid argument against such exemp-
ton.
Any internal tax on a material used in
a legitimate manufacture is contrary to
our whole system of taxation. There is
absolutely no other material taxed in
this way under our laws. except possibly
tobacco.
But not only is legitimately used alco-
hol taxed. but it is taxed to a most out-
rageous degree, far beyond any other
taxation known in this country. Thus
alcohol can be bought at the distillery
in bond at 9.22 cents per gallon Of COM
mercial alcohol QSS degrees proof, with
out the barrel. on which the internal
2245 per cent. OF course this is an alb
normally high percentage of tax, because,
owing to certain causes alcohol is alb
normally low in price. But the tax, I'M
der ordinary conditions, varies from 700
to 1000 per cent.
Other nations have succeeded in MAX
ing laws and regulations which allow the
use of alcohol for other things than bever-
ages, and there is 10 complaint, in those
countries, of excessive frauds. The Joint
special Congressional committee, of which
Senator Plat of Connecticut is chairman,
has sent to Europe, as a special commits
sioner to Investigate foreign methods in
this regard. Mr.. Henry Daley, Jr., of
| new YORK, whose report Is now printed.
In England, Mr.. Leah, a British rev.
enue officer of nearly forty years ex-
| perience, says:-Spirits is a necessity to
the manufacturer, If he is to compete
with foreign products, n fraud in the
use of spirits chat is, serious fraud is
virtually unknown"
In Germany are to be found the most
liberal laws relative to the legitimate uses
of alcohol. Mr.. Daley says
Following the above Illustration in
respect. to the German customs duty and
internal revenue taxes, 1t Is pertinent to
the question to show that that Govern
mefDt perSiStently purSues the policy of
! fostering home industries, even going 50
far to do so at the expense of the general
public, as Illustrated in the bonus over
and above the internal revenue tax which
is paid to the exporter of domestic
alcohol and which is a drain upon the
| general revenues. Their internal revenue
| tax ON alcohol amounts to the equivalent
of 36 cents per u. s.. gallon, and this is re-
funded to the exporter OF such alcohol. or
of products in which domestic alcohol is
a component part, and in addition thereto
a bonus equivalent to IS cents per hectoli-
ter, which is upon the cost of alcofhol
(ssay 10 cents per gallom)s about a 80 per
to the exporter of domestic alcohol pro-
ducts, supplemented and made still further
effective by the failure to allow a draw
back ON imported spirits exported. Such
spirits. pay a duty, as YOU have seen, of
from $1.35 to s3.67 per gallon.
.'The policy of the German Government
in respect to their home industries is
brought into sharper contrast when we
ompare it with the effect Of the laws Of
the United States under which our mer-
chants are forced to use foreign alcohol
in order to be able to secure in a very
limited way foreign trade. and this to
the total exclusion of the use of the do
mestic product for that purpose thereby
not only limiting our foreign trade but
encouraging the importation of foreign
alcohol and discouraging the use of home
articles. No law exists on our statute
books today by which domestic tax-paid
alcohol can be used in the manufacture
Of articles for export, and a refund of
the internal revenue tax be secured; but,
on the other hand, IL the alcohol shall
have been imported. and = manufactured
refund of 80 per cent. Of the customs
duty. Is repaid by the Government. Why
should we thus discriminate against our
own people?'
Belgium and France are now in pro-
cess of liberalizing their laws in, this
same direction, commissions for tina pur-
tton.
ASSAULTED HIS sIsTER-IN-LAw
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