The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-12-31
How TO Plug The
Nd+iondI Deficit.
From the Philadelphia Press.

From the Philadelphia Press.
G7lE SPEECH of Senator Hoar. Of
Massachusetts in the senate few
days ago Az to the desirableness OF
imposing a tax on beer In order 10
increase the revenue placed the
subject before the public in II light which
ought to command for 1t full and fair con-
sideraton. lie urged that the question
be discussed in a nun-partisan manner
and that il be decided on its merits. Some
of ihe facts he gave will be new to most
people and they deserve careful atten-
tion. IIe said in part: Here are num-
Der of foreign brewers. They have
method of making most deleterious ana
injurious class of beer without hops.
They started it in foreign countries.
Those governments, jealous and anxious
for the health Of their people and the
purity of their national beverages. put "a
stop to the deleteriCus practice. and they
have come over here. They are buying
up the American brcwerieS with foreign
capital. ! know in one instance of
brewer of foreign birth making l15,OOO
barrels of beer year making profit of
Il dollar barrel ON his manufacture. We
do not dare to compel that industry to
pay II reasonable and proper tax, because
We are afraid of the political power tn"
brewers will exert determining the polit-
iCal power in this country between differ
of "A dollar barrel or half ii dollar bar
rel ON beer would remove all the financial
trouble In the matter of Il deficit.
d
The attitude of Senator IIoar will be
generally approved by intelligent people.
1t IS time this question of taxing beer
We're considered on it's merits and aside
from lis political effect. If the product
Of the breweres is not bearing its right
tul share of the burden of sustaining the
government the mistake should be cor
rected. but it should not be done or left
lndune because it will help or harm any
party. The whole question should bc con-
sidcred on the ground of the ability of
beer to bear an additional tax ana of the
Justice of imposing it. Any facts and
figures which can throw light ON these
points will help toward reaching just
decision and influencing rightly congress
on the subject
1t is Il generally received principle that
the taxation of any business should be
measured according to its ability to pay
Il tax and its need of the protection which
the tax goes to maintain. As to the
first point III Is only necessary to quote
the returns OF the brewers themselves.
The Chicago brcweries are nearly all
owned by an English syndicate which
bought them a few years ago tor about
$j,7Io.0J0 and mt once capitalized them for
$ll 600 600, making $3.50 600 out of the op-
Grafton. But even on this heavy capit-
| ui2atiOn they are earning and 10 per
| cent. besides paying interest on bonds.
| The Milwaukee brcwercs, similarly
owned and operated are paying even pet
| ter dividends. And it must be remem-
bcrod that in both instances large sums
are charged off to depreciation, repairs
| ana head office expenses before the divi-
| dendS are declared.
The profits ON Il barrel of beer to the
producer and the seller vary consider
| ably. They depend partly upon the purity
| of the ingrc dents of the beer and parity
upon the business ability Of the producer
| and retailer. There is one profit on the
| beer rCtailed at ten cents Il glass and an
| other on the beer which sells at three
cents a schooner. The first is probably
| made of hops Will" there Is little doubt
| that the latter comes under Senator
| HOarS classification of a beer made OF
| most deletrrious and harmful ingredients
| But taking the better class of beer and
| there are well authenticated instances
where the profits have ranged for years
| between Sl7O and S1.S6 barrel to the
| brewer ana it is rot too much to claim
| that with beer selling ut 81 barrel the
| profit to the producer averages the COM
try over about - a barrel. The profits to
| the retailer are still greater and range
| from Sl.15 to S3.2a Il keg. And when 1t il
| remembered that many of the retailers
are only dummies for the producers the
large profits of the business can be con-
jectured.
| That the liquor business ~ able to beal
a larger tax than it has heretofore borne
| there are many facts to prove. During
| the past twelve years a nigh license law
has been passed in nearly every northern
| state. In this way the cost of Il license
| and the expense of carrying on Il liquOl
business has been largely increased. II
| some cases the license cost has increased
four-fold and in nearly every instance il
has been doubled. But there has been ne
corresponding increase in the cost o'
liquor to the consumer, and in most cases
| IL remains the same as 1t was under loN
licenses. Take one conspicuous instance
! Less than two years ago Il high license
law was passed in New York state unici
| which the number of saloons has beer
! largely reduced but the revenue has beer
| greatly increased. During the last yeal
OF the old law there Were 22,Sj1 licensed
| saloons I'm the fOrty-One chartered clti",
Of the state which paid in revenue 5000
143. September 80 last under the new Law
there We're i'm the same cities 1889 II
censed saloons paying "A revenue of $6.jil,
7i3. outside these cities nearly as muct
more revenue from the liquor business
was received making Il total ol over Sl2,
600 900 for the whole state.
o
Such an illustration OF the ability of tn
business To pay 4 large revenue and stu
remain profitable speaks volumes. Dur
ing the year 1896 there We're 81, U93 bar
relS of beer brewed in the United States
showing an increase of 2,3j6 i32 barrel
over the previous year. tax ot 81 a bar
rel ON this product would return the go"
ernment a sum more than sufficient L
supply amy probable deficiency in it
revenue. And the propriety of levy
ing this tax should be determined
not ON account of it's political effect, an
it is likely to have very much less tina
Is generally supposed, but on the groun
of its need ana the ability to pay IL.
THE AMERICAN LOCOMOTIVE.