Washington sentinel., 1900-02-03

enormous sums, as we have stated,
because their operating expenses remain
the same, while. on account Of steadily
decreasing sales, their profits grow less
from day to day.
Besides this, for some reason or other,
brewers do not succeed in collecting the
whole amount Of the tax, in many
instances attempts to do so only resulted
in augmented book accounts; in others
compromises had to be effected IN order
to hold trade. The pressure arising
from competition naturally operates
along the lines of least resistance, and
hence, in this respect. too, the smaller
establishments are the greatest sufferers,
in spite of the fact that the larger pro-
ducers-to their credit be It said--have
sought and still seek to protect them.
What the fate Of the smaller establish
ments would be II the additional tax
should be continued can easily be in.
ferred from the fact that there are in all
about 1, 300 brewers in the United States,
OF which number Ico brew one halt of
the entire quantity of malt liquors pro-
duced in our country, while the remain
ing 1900 manufacturers produce the
other halt, averaging len thousand
barrels per brewery. If, under such
alluringly favorable conditions, trusts
and combinations upon a large sea c
have not yet been formed, il is because
the assurances given by both the Chair
man of the Ways and Means OF the
House OF representatives. and OF the
Finance Committee ofthe Senate, Iustl-
fed the hope that, upon the termination
Of the Spanish American war, the addi-
tional tax would be remltted. We are
fully aware that the extraordinary
expenditures growing out Of this war
have not yet reached their limit; but we
would respectfully submit that this is no
reason whS our industry should continue
to bear an insuffersble burden. while
two thirds Of the legitimate and easily
available revenue sources OF our country
do not pay, and for the past thirty years
have not paid, a single dollar OF internal
revenue, while the tax upon distilled
spirits remains unchanged, and neither
domestic wines when sold in bulk or
by the measure) nor native elders pay
any taxes whatever.
The additional tax Of 81 upon malt
liquors represents, as we have stated, 30
per cent Of the aggregate receipts from
all sources under the new Revenue Act
the whole tax OF S2 per barrel represents
30 per cent OF the price of our product.
We hold that there is not even a SEM
blance OF a reasonable argument by
which could be justified the imposition
Of such an enormous tax upon an article
OF general consumption--a beverage
which forms an essential part Of the daily
diet OF the great mass of the workingmen
OF this country, and which at the same
time serves great hYgienic and moral
purposes inasmuch as its popularIEation
has minimized the evils resulting from
the former general use OF ardent spirits.
The continuance OF this double burden
imposed at a time when the market
value OF our product has dwindled to
less than one half OF the price which
prevailed when the old war tax was
imposed, cannot but result in the des-
truction of a large proportion OF the
brewing plants of the country. The
enormous decrease in the consumption
OF malt liquors, which has taken place
within five months after the imposition
OF the additional tax. and the present
depressed condition of the trade may
serve as reliable gauge OF the injury
which the continuance of the tax will
infict upon the industry. The crippling
OF the brewing industry means not only
impairment OF the most valuable source
Of revenue and one OF the more import.
ant wealth producing factors; It also
means the jeOpardizinR Of the interests
Of agriculture, of innum srable allied
trades. of the brewery Workmen, who
now receive much higher wages than the
average mechanic in any other branch
Of industry, sndL last, but not least, OF
the consumer, who, when the process OF
crushing the weaker manufacturer and
the larger producers into
vast trusts shall have been accomplished
under the operation OF the inexorable
produced by this exorbitant
tax, will ultimately be the sufferer in
more ways than one.
Il is universally admitted that the
gigantic strides with which, within the
last 20 years, the cause Of true temper
ance hs progressed towards ats goal are
almost exclusively attributable to the
substitution Of the mild fermented
beverages for distilled spirits as the
common drink of the people, This
the aim and object Of every
civilized government Of our time. would
have been impossible without broad
discrimination in favor Of fermented
liquors 10 point oi the relative proportion
oil taxes imposed upon the two kinds OF
drinks. and the determination to tax
fermented drinks as lightly as possible.
IL all Federal excise legislation,
beginning with the tirst bill proposed by
Alexander Hamilton, this policy has
found unequivocal aud emDhatic expires
sion, and Congressional debates prove
beyond doubt that the master minds
OF our people were at ali times its most
ardent advocates. The recent Excise
Act is not merely a departure from this
policy, but a complete subversion OF it;
and the inevitable result will be a
relapse into the deplorable condition Of
things wbieh. in past years, had placed
the American people in the foremost
ranks Of "bard drinking nations"