The times. [volume] (Washington [D.C.]) 1897-1901, 1900-04-26

liquid bread to thousands upon thousands
Of cur people,. has decreased by 100000
barrels. and this disastrous effect. the eco
pornic result OF the double war tax. is felt
rot only by The brewers by the growers oil
I barley Of corn. and Of hops. but also by
very many important industries which de
pend almost exclusively upon brewing, ana
particularly by the great mass OF eonsum-
ers.
while We stiII hold that justice, econo-
mic utility and many moral and ethical
considerations should have prevented Con
gress from superimposing this new war
tax upon the old war tax, We feel compen-
stated in some measure at least for the
uuwarrauted sacrifice exacted from us by
the consciousness that the brewing indus
try by paying over 40 per cent Of the en-
tire war tax contributed. financially, in a
larger measure than any other twenty
American industries to the glorious
achievements Of our people during the
past two years.
We now appear before you with an ap-
peal for justice which is supported by the
explicit pledge and promise Of the ruling
political party. In our petition submitted
in April 1898, We stated the following:
III. In spite Of every objection that can
be justly urged against an increase OF the
beer tax you should nevertheless see fit
~ ttHlFl llalLN hAtA- H. We ''NNAN 'N-tNNN
fully request that the duration of the
additional tax be limited to the emergency
which requires it; in other words, that the
DAY on which the present taX-rate shall be
restored be fixed by law,
AS a reply TO this the honorable Com
mittep on WAYS and Means stated in its
report ACCOMPANYING the War Revenue bill,
as ultimately enacted, the following;
While all OF these additional taxes are
war taxes, which would be naturally re-
pealed or modified when the necessities
Of war and the payment of war expenses
have ceased. yet il is impossible now to
place a limit on them, not only for the
reason that no one can intelligently fore
cast the length Of the war, but also for the
reason that war always brings a train of
extraordinary expenditures which do not
terminate with the close Of actual hostili-
ties
We now ask you to make good this
pledge to fulfill this promise. The treaty
OF peace was signed on the 18th day OF Au-
gust. 1898: one year and eight months have
ELAPSED since the war ended under this
treaty: actual hus,ilities had ceased some
tine previous TO this event. Extraordinary
expenditures following in the wake Of this
war ceased to such an extent
that there is now in the Treas
ury surplus which within
few months VIII exceed by geo per cent the
most destructive tax ever imposed by a
legislative body, namely. the double tax
upon American malt liquors. This increas-
ing surplus rendered possible only by the
continuance Of this destructive double war
tax upon very important and morally and
economically useful industry, has already
caused serious disturbances in the countrys
money market and compelled the Treasury
10 anticipate its obligations TO the nation s
creditors Its pernioious effects In this re-
spect viii naturally be augmented in pro-
portion to its increasing volume, and this
deplorable condition (Which presents not
single compromising feature will neces--
sarily 20 on simultaneously with the grad
uaI destruction Of our trade.
Justice public utility. political expe-
diency. and a due regard for the moral and
physical welfare Of the people and the
comfort and happiness Of the beer-dIink-
ing masses alike, demand Of you the re-
duction Of the beer tax to the former rate
ar. KendaITs Remarks.
Mr.. n W Kendall, Vice President Of
the Association, followed He said;
In our memorial We have endeavored to
answer the question, Who pays the taxi
So far as the final result is concerned
il matters little who pays the tax. Who
ever pays It, whether it be the brewer. or
the dealer. or the consumer, OF whether all
contribute in varying measures to the pay
mert Of it (which is actually the case), the
fact remains that the eXacJion Of the extra
tax had the effect Of reducing the produc-
ton Of malt liquors by one million barrels
within the past year. In the same period
bankruptcies, and consolida-
ton of breweries have be- ONE daily occur
4 III f.s- of ar4slN
brewing companies in the hands Of receiv-
ars and OF compaies who are unable to pay
interest upon their liabilities are increas-
ing at an astounding rate And all these
deplorable conditions prevail at time OF
general prosperity IN all other lines Of
business. Does this state Of affairs Sus-
tain the claim Of the advocates OF
the extra tax to the effect
that it would cause min
mum Of Industrial distur bance? Is not the
contrary clearly demonstrated by the rev
enue returns? What possible good can ii do
to compute abe proportion OF the tax borne
by the brewer, the dealer. and the con-
sumer. respectively? The single statistical
fact. reported by the Revenue once, that
The production Of beer decreased by one
million barrels when it should have in
creased by a much larger amount than this
economic axiom that an excessive tax, IN
ess fraudulently evaded, must necessarily
reduce the consumption of the over-tax d
article. II seems to US that this IS all that
he lawmakers need to know in order 10
induce them to grant the relief 80 impera-
lively demanded by existing conditions.
Now, who does pay the tax As II is
a tax on consumption, the consumer ought
to pay it; the brewer collecting
it from the dealer and the dealer ex-
acting it from the consumer in one way or
another. Theoretically this sounds very
plausible and appears entirely feasible.
But is it fact? Not at all. The fact IS
that the tax affects the manufacturer. tie
dealer, and the consumer, the two former 4
sustain actual losses Of money, the latter
shares the burden in some measure by loss
n the quantity OF the goods he receives
AZ the old price. The exact extent to ire
dealers and the consumers losses cannot 4
be estimated; but as TO the general erect .
II the tax as q trade destroyer We have 4
most reliable gauge IN the depressed con- /
iition Of the brewing Industry at TINS
line Of general progress and prosperity. /
we know the actual losses sustained by
he brewing industry in the shape Of de-
.reased production we know Of hundreds
4 bankruptcies and are aware Of the finan-
.ial straits Of hundreds Of brewing estab /
ishments but at the present time it is
impossible to estimate the whole extent u
he injury inflicted upon brewing and The
Allied trades, upon agriculture, and upon
he dealers This much is certain. how
ever, that far from causing a minimum Of
Industrial disturbance as had been claim
I'd, the additional tax has completely ur-
settled and demoraliZed our industry and
svery trade that depends upon it. Every
hing is sull in a state OF transition
neither the producers nor the retailers, nor
10 fact the consumers have succeeded In
accommodating themselves 70 the new