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

lnQuEETF-lIE pEOGutllnI OF DttT (WHICH "
liquid bread to thousands upon thousands
of our people,, has decreased by 100000
barrels; AID this disastrous effect. the eco
nonic result OF the double war tax. is felt
not only by the brewers. by the growers oil
barley. of corn. and of hops, but also by
very many important industries which de-
pend almost exclusively upon brewing, and
particularly by the great mass oil consum-
ers.
While we still hold that justice, econo-
mic utility. and many moral and ethical
considerations should have prevented Con-
gress from superimDosing this new war
lax upon the old war tax, we feel compen-
stated in some measure at least for the
unwarranted 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:
IF. in spite of every objection that can
be justly urged against an increase OF the
beer tax, you should nevertheless see fit
10 determine upon it. We would respect
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
LAS a reply 10 this. the honorable Com
mittee 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 it 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 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 hostilities had ceased some
time 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 200 per cent the
most destructive tax ever imposed by
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 a very important and morally and
economically useful industry. has already
caused serious disturbances in the countrys
money market and compelled the Treasury
to anticipate its obligations TO the nations
creditors. Its pernioious effects in this re-
spect will naturally be augmented in pro-
portion to its increasing volume. and this
deplorable condition (which presents not a
single compromising feature). will neces-
sarily go on simultaneously with the grad
ual destruction of our trade.
Justice. public utility, political expe-
diency, and due regard for the moral and
welfare of the people and the
comfort and happiness OF the beer-dTink-
ing masses alike, demand of you the re-
duction of the beer tax to the former rate"
M. KendaIFs Remarks.
Mr.. N W. Kendall, Vice President of
The Association, followed, He said:
I'm 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 II, whether it be the brewer, or
he dealer or the consumer, or whether all
in varying measures to the pay
nent Of it (Which is actually the case), the
'act remains that the exaction of the extra
ak had the effect of reducing the produc-
ion of malt liquors by one million barrels
within the past year. In the same period
bankruptcies, and consolida-
ion of breweries have become daily occur
'ences, and the number Of newly formed
,rewing companies in the hands of receiv-
rs and of compaies who are unable to pay
interest upon their liabilities are increas-
ng at an astounding rate. And all these
leplorable conditions prevail at a time of
general prosperity in all other lines of
business Does this state of affairs sus-
ain the claim of the advocates of
he extra tax to the effect
hat it would cause min
mum of Industrial disturbance? Is not the
ontrary clearly demonstrated by the rev.
nue. returns? What possible good can it do
o compute the proportion OF the tax borne
~ the brewer, the dealer. and the con-
umer respectively? The single statistical
act reported by the Revenue ONCE, that
he production of beer decreased by one
million barrels when it should have in
reased by a much larger amount than this
,roves conclusively the correctness OF the
economic axiom that an excessive tax, IN
ess fraudulently evaded, must necessarily
educe the consumption OF the over-taxs d
rticle 1t seems to us that this is all that
he lawmakers need TO know in order TO
induce them to grant the relief so impera-
lively demanded by existing conditions.
Now, who does pay the tax? As 1t is !
tax on consumption, the consumer ought I
to pay it; the brewer Collecting !
t from the dealer, and the dealer ex- |
citing it from the consumer in one way or |
mother. Theoretically, this sounds very I!
plausible and appears entirely feasible.
But is it fact? Not at all. The fact IS
hat the tax affects the manufacturer tie
ealer, and the consumer; the two former /
ustair actual losses of money, the latter !
hares the burden in some measure by loss
d the quantity of the goods he receives I
I the old price. The exact extent to tie
callers and the consumers losses cannot J.
e estimated; but as TO the general effect
the tax as trade destroyer we have
lost reliable gauge In the depressed con-
ition OF the brewing industry at this
Ime Of general progress and prosperity.
I'VE know the actual losses sustained by
he brewing Industry in the shape OF de-
reased production; we know of hundreds
I bankruptcies and are aware of the finan-
ial straits of hundreds of brewing estab-
shments; but at the present time ii is
npossible to estimate the whole extent of
be injury inflicted upon brewing and he
HE'D trades, upon agriculture, and upon
he dealers. This much is certain, how
yer, that far from causing a minimum of
Industrial disturbance, as had been claim
d, the additional tax has completely uE-
ettled and demoraliZed our industry and
very trade that depends upon it. Every
hing is still in a state Of transition;
either the producers nor the retailers. nor
q fact the consumers have succeeded In
themselves TO the new
ondition of things; everything is held in
beyance; sporadic and desultory efforts 10