Washington sentinel., 1898-12-24
THE TAX ON BEER
Mr.. Bergner Answers the PhilRdel
phta Ledger.
Editor Public Lsdgey.

Editor Public Ledger.
Sir: Your editorial, Brewers Want
to Escape War Tax" published in the
Public Ledger Of December 9, 1898, is
based upon erroneous premises and
inaccurate statistical information.
Both1equire correction. The brewers
do not want to escape the war tax;
they wish to be relieved Of a war tax,
superimposed upon a war tax Ever
since 1862 they have borne the original
war tax, although the plethoric condition
Of the Federal Treasury warranted the
policy Of a steady contraction OF the
internal revenue system, simultaneously
with & considerable reduction Of the
national debt. And it is fair criterion
OF their patriotism-which you seem
inclined to belittle by an untenable
comparison with the alleged contrary
attitude OF English brewers-that the
American brewers at their own expense
prepared and submitted to the Govern
ment that perfect system OF collection
which is still in force today. Nor did
they protest aea eainst reasonable import
duties upon all raw materials used by
them. They knew, as all authorities
upon economic questions knew, that the
tax Of 81 was up to the utteTmost limit
Of the revenue standard; but their traffic
was not then burdened With additional
municipal and State taxes in the form
of license fees,
Your allusion to our statement ot the
condition of the trade would be more
iorcible if It were less incorrect. The
additional war tax Of 81 was superim-
posed upon the old war tax when the
brewing industry had begun to decline.
Up to 1891 the average annual increase
in the production Of malt liquors
amounted TO 1000 oco Darrelsi this was
Justly considered a natural growth.
Unburdened by excessive local taxa.
ton, the total production, at the rate OF
increase indicated above, would have
amounted to $4,000 900 barrels in 1897;
instead Of shat, 1t stood, in that year,
below the production of 1898; i. e.,
below 3455+3I7 barrels,
Hence the extra tax was imposed
upon an industry already declining
under tax burdens exceeding very
considerably the uttermost limit of the
revenue standard. Neither invidious
nor uniounded comparisons can
overthrow these facts.
You state that the English brewers,
at their annual banquet, CheeTed Sir
Michael Hicks. Beach's utterance to the
effect that if the cOuntry's welfare
required extraordinary sacrifices, the
brewers would cheerfully bear their
share Of extra burdens. The American
brewers used precisely the same terms
in their memorial to the Ways and
Means Committee at the outbreak Of
the Spanish American war, and Con-
gresham Grosvenor had the fairness to
admit that no other industry evinced
as much patriotism as the brewers (see
Congressional Record, April 29, 1898,
page 4876), but he omitted to state that
the country's honor being at stake, the
brewers declared their willingness to
bear proportionate part OF the extra
ordinary expenditures, if the taxing Of
all other industries should fail to produce
the needed revenue. Not one third
OF the available revenue sources resorted
to IN IS62-65 have been made use Of, but
the beer tax was increased by over 100
per cent. Do you, Mr.. Editor. know
Of an instance IN the history of any
country in the world where the tax upon
a declining industry has been doubled
at one stroke?
You state that the English brewers
pay 800 900 900 excise on $4,000, 900
barrels Of beer" but you do not state
that an English barrel contains SO
imperial gallons while an American
barrel contains only z64 such gallons,
equal to 3IH American gallons; the
imperial being to the American gallon
asIo to 1881, that is to say that the
English brewer pays about SI.67 on 50
imperial gallons. while the American
brewer pays s. on 20 imperial gallons;
or, in American gallons, the American
brewer pays 81 tax on 3IEE American
gallons, emitting municipal and State
taxation; while the English brewer pays
only Sr.I7 on 5IH American gallons. Is
it to be understood that to the
brewer patriotism should mean passive
submission to an aggregate Federal,
State and municipal tax burden,
amounting to so per cent. Of the value
OF his product, while to any other citizen
it means eagerness to uphold the honor
OF our country, no matter at what cost,
provided that somebody else foots the
billo
You state that at the brewers meeting
a capital OF $500 COO. 900 was represented
II you would consult the last Census and
the report of the Federal Commiss oner
of Labor (rs98), YOU would find that your
figures exceed the official data by about
90 per cent $500 900, ooo).
Very respectfully,
c. w. BERGNER,
President u. S Brewers Association.
Philadelphia, Pa, Dec. I9, 1898.
AT THE THEATRES.