Evening journal., 1898-07-06
LETTERS FROM THE PEOPLE
THE NEW REnR TAX

ant brewing firm of Meesrs. Bass &
Co. Id. We did so merely to emphasize
the legitimate success attending the ef-
forts Of that particular firm to give |
good goods for the money. It can be
truthfully stated that the Bass's did not
accumulate their millions sterling in a
few solitary years. They did not expect, |
with their mode Of doing business, to
do so; it took several generations for
them to arrive at so golden a goal.
And when one remembers the many, |
Elany years 1t did take. and the enor-
nous annual output Of this firm, then
1t will readily be understood that, af-
ter all, their profits came slowly. In
other words, the Bass's adopted, and |
still adopt the very sage policy Of
large sales and small profits This also |
was the policy ever adopted by the
Guinness's, the Whitbread's, the Bar
clay and Perkins's, the Allsopps's, and |
other more or less important English
brewing concerns. Such a policy is not
only 'longheaded," but it is far in adj
vance Of the "get-all' principle so per-
sistently followed by some American
brewers, brewers who shall be name
less.
The American liquor retailer puts
forth the complaint that the profits of
his business are not what they former
ly were. He urges this plea-and it is
no doubt a tenable plea-as an excuse
for his not wishing to pay the whole
or part of the new tax. But the re-
taller must also remember that neither
are the profits of the brewer what they
formerly were. A Philadelphia brewer
has very pertinently said-"The condi-
ton of the brewing industry, as at
present conducted, leaves but a very
narrow margin of profit, and while 1t
is true that large profits were made
from 1865 to 1888, since that time the
prices for beer have very quickly and
materially decreased. The best evil
dence that the profits OF the business
have materially declined lies in the fact
that the brewing plants acquired by
English syndicates between 1888 and
1891 have never been able to pay divi-
dends on their capital stock, and the
ten pound shares of said companies are
mostly quoted at from one to three and
, one-half, thereby proving conclusively
40 r,ff rrrhfob q
based upon the net profits of said com
panies, shows an enormous decrease in
T profits The United States revenue tax
} is equal to about 80 per cent. Of the
gross receipts of the brewer, and in
i many states the brewers license and
corporation tax bring this up to nearly
45 per cent. The brewer who does not
collect the new tax is simply inviting
p bankruptcy, or he is palming off on
the public a spurious, inferior, adulter-
ated beer. 1t cannot be gainsaid that
the margin Of profit left to the brewer,
even If his customer pays the new tax,
Is only very small one when the
, outlay Of capital is taken into consider
= alton" We are Of the opinion that the
e retailer will find it a difficult task &c
refute the above authoritative state
] ment-that is, unless he, the retailer
a can break the back of this brewers
= statement by the introduction Of {
l. more truthful array OF facts. Th'
n same authority-the Philadelphia
n brewer-also says: "The saloon-keep
J. ers should reduce his measure proper
= tionately." 1t will been seem at {
e glance that this brewer advocates th
a policy Of keeping up the present stand
g ard Of beer, but that he also advocate
Al them our opinion-very short-sight
s. ed policy Of the retailer giving a shor
ID measure to the customer Come, come
r MIR. Brewer, that will not do. If ther
+ is TO be an appreciable shrinkage o
4. protits-consequent upon the fact o
e. this glorious Cd war requiring an ad
s, ditional tax Of 81 a barrel on beer
vt then that sihrinBage ought to be born
of equally by the brewer and retailer
4 not by the consumer. We have eve
ID been of the opinion, and we do no
W stand alone in that opinion, that tn
Is American public, so far as the qualh
e. Of American beer is concerned, has al
~ ways been obliged to cate
l. hold of "the worst end Of tn
ar stick" We venture to say that IL tn
IS present standard-none too high, &
that-of beer is lowered, or If the pric
Sc is raised on the public, or if shoi
III measure is doled out to the public-w
OF venture to assert that in the event {
ke either Of these contingencies becomin
H. an accomplished fact it would be es
nd tremely prejudicial to the interests {
IS what is a great and perfectly legitimat
ga business, namely-the brewing bus
m ness. During one of the wars in whic
ar England was interested, and when tn
m further taxation Of alcoholic bevei
of ages was the order of the day, NJ
Its very prominent brewer said: "The pul
"