The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1900-03-21
Congress Should Be Fair.

law of 1894. which increased
the tax on alcohol from 30
cents to s1.10 a gallon. the
secretary of the treasury was author
iZcd to prescribe regulations under
which manufacturers and others
should receive rebate on taxes paid
on alcohol used in their manufactures
and in the arts. This provision was
inserted because it was not intended by
congress. then or at any subsequent
time. to increase the tax on alcohol
otherwise than as a constituent Of
beverages.
Secretary Carlisle refused to make
the regulations which congress had
plainly said he should make and the
United states supreme court. on a suit
of the manufacturers for the enforce.
ment Of the rebate, held that inasmuch
as the law of congress had not been
complied with. no rebate could be paid.
AS the case stands. therefore. more
than 1910 manufacturers have just
claims against the United States ag-
grcgating S6,000.000 for over-taxes paid
by them and held by the government
contrary to the plain intent of the act
of 1894, and the Supreme court opinion
leaves them with no legal redress.
In this emergency Congressman Rus
sell of Massachusetts, has introduced 4
bill providing that these claimants
shall bring suit and prove their claims,
and that the disobedience of the secre.
tary of the treasury in failing to make
the proper regulations in this matter
shalt not operate as "a defence, thus
putting every claim on its own merits;
but for unknown reasons even this
manfestly fair proposition is encoun-
tering opposition at Washington. One
senator. a member Of the finance COM
mittee before which the Russell bill Is
to come. is quoted as saying:
cannot see any real merit in tins
claim The tax paid by those manufacture
els undoubtedly went into the price cf
their wares. There was no reduction in
their prices on account of this promised
rebate in the Wilson law. but the prices
of the goods were kept up to what they
had been before the law passed. II these
claimants should be given Il standing so
they could leCover the amount of taxes
paid by them 1t would be in the nature of
a gratuity to them. On that account
there Is much opposition TO the passage
of IA bill whose ultimate object Is taking
| $6, OQc, 600 out of the United States treas
ury and giving il to the hat manufacture
crs and others who use alcohol in their
work, when the amount of the taxes paid
by them was made up in the prices they
| received for their goods.
Whether the taxes went into the
price or whether the price was reduced
or not has no place in the equity of the
case so far as congress is concerned.
1t does not give ground for a breach
of faith on the part OF the government
Congress six years ago plainly said
| that the 20 cents additional tax on al
| cohol levied under the Wilson bill
| should be rebated so far as it affected
| alcohol honestly used in manufactures
| and the arts; and on the strength oi
| that promise the manufacturers con-
| cerned in this matter paid their money
to Uncle Sam to the extent Of $1,000, ,OOt
expecting on the strength of his word
soon to get it back. 1t Is fair to as,
sumo that in their listing of prices the.
charged up 10 cost only the interest or
the over-taX during its retention by the
government But whether thev die
this or not there is Uncle Sans pledge
to them, solemnlv enacted into law
ana good faith requires that it he kept
According 70 the Billy Sulzer idea
of International law, as indorsed by