The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-05-18
Gossip at
the Capital

~ Nv" II SS|~n
Special Correspondence of The Tribune.
Washington, May II.
A proposition to increase the tax on
beer and at the same time to reduce the
tax on whis<ey seems a somewhat novel
one but is not unlikely to be accepted by
congress before the new revenue bill be-
comes a law. At least the present indi-
cations are that the tax on whiskey will
be reduced and as there seems to be little
opposition developing to the proposition
for an increase of the taxation on beer
1t Is quite possible that the one bill may
do these two things-increase the beer tax
and reduce the whiskey tax.
81 think we can increase the revenue
of the country as much by reducing the
tax on whlskey," said Senator Cullom,
"as is proposed to increase it by the al
ditional tax on beer 1t seems a little
curious, perhaps, to assume that re-
duCtion of tax means an increase of reve-
nue., but this ! believe would be the re-
suit of reducing the present internal rev.
enue rates on distilled spirits"
"Do you think, senator" was asked
''that the high rates of taxation on whis-
key which have existed since the Wilson
law was enacted have reduce3 the amount
of whiskey consumed In the United States
or the amount manufacturer
mo. The revenue from the tax on dis
titled spirits has fallen off and of course
the first thought would be that reduc-
tion in the amount of revenue collected
means reduction in the amount con-
sumed by the people and the amount
manufactured by the distillers. But this
is not the case. There is every reason to
believe that the amount of whiskey and
distilled spirits generally now being man
ufactured is Just as great as when the
present law went into effect But the
revenue has fallen off very greatly mean
time"
"If the amount of revenue collected
from distilled spirits is reduced, how do
you make out that the manufacture has
not also been reduced in like proper
tions?"
"The reduction in the revenues from
the tax on spirits has occurred because
of the enormous Illicit distillation, which
has been encouraged and brought about
by the increased incentive to fraud Of
fered by this increased tax"
GLOW does the increased rate encour-
age fraud?'
simply because there is more profit
| In making and putting upon the market
| whlskey or alcohol upon which the tax
| has not been paid than was the case
|
| law framed by the Republicans was 5000
per gallon. The Wilson law increased the
| tax to $1.10 per gallon. OF course If a
man makes alcohol or whiskey and sue
| ceeds In selling it without the payment of
| the tax he gets larger profit when the
| tax is $1l0 than he does when the tax is
| $3.50 because the tax paid goods which are
| his competitors must be sold at a higher
price under the high rates of taxation
htan they were under the 5000 rate. These
facts have encouraged Illicit distillation
very greatly The treasury department
has very convincing evidence showing
that there has been great increase in
| Illicit distillation both in the cities and
the country. Formerly most of the spir-
its escaping taxation We're manufactured
| in the mountain regions where 1t was
possible to avoid detection, but since the
increase in the tax has proved such a
| great incentive to moonshining and given
so much more profit 10 the fraudulent
| manufacturer of spirits the number OF
| Illicit stills has greatly increased in the
! country and there has also been devel-
oped a system by which the cities con-
tribute largely to the amount of Illicit
distllation. In addition to these it Is
found that many of the small distillers
throughout the country have developed
a system by which they are able to get
a certain proportion of their products on.
and without likelihood Of detection"
"Then II Is the fact that the market has
been supplied to a great extent with spir'
its on which the tax has not been paid
that accounts for the small quantity Of
tax paid spirits withdrawn for consump
! tion?"
Undoubtedly. The figures of the treas
ury department show that in other lines
of this general character the consump
ton has not fallen Off nor has the reve
nue. fallen off. The revenue from botl
beer and tobacco has kept up steadily
since the enactment of the Wilson law
while that from distilled spirits has fallel
off. For instance, the receipts from to
bacco in the fiscal year ended June 30
1894. were S2S6l7, 29S and in the year end
ed June 80, 1896, were $50, ILL., 629. The re
celpts from fermented liquors for the yea
ended June 30, 1894. were $3l, ,4l4, 7SS and Il
the year ended June 80, 1896, were $33.
7S4, ,234. Both there you observe show
handsome increase. The receipts from
spirits, however on June 30, 1894 were 70
the preceding year $S4, S1S, ,592, those of tn
year which followed We're $50 1856, ,TG7 AM
those for the year ending June 30, 1896
were only S79,G9023S. When you take in
TO consideration the fact that there wa
no Increase in the tax on beer or Tobacco
and that both of these articles increase,
in their revenue production and put tina
against the fact that i'm the article o
distilled spirits I'm which there was Al
Increase OF 20 cents per gallon there wa
an actual falling off of revenue in tn
same period, 1t is quite apparent that tn
increase In taxation must have encouT
p aged the production and sale OF spirit
, upon which the payment OF taxes wa
evaded"
"You think, then, that by going bae
? 10 the former rate of taxation the amour
of crime in the matter OF Illicit dlstilla
, tion will be reduced and the revenues @
: the government increased, do your
"Yes, think there is no doubt of thai
7 | 1t Is believed by those who have studie