The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-05-28
BEHIND IN HIS CONTRACT BEER WILL COST MORE
EFFECT OF INTERNAL REVENUE
LAWS.
An Important Question for Wholesale
Liquor Dealers-American Liquors in
Bond May Have to Pay Duty.

Under the Territorial Act, Hawaii be-
comes a part of the first internal reVe-
nue. district of California, under Col
lector John G. Lynch.
Commissioner of Internal Revenue
Wilson has instructed Special Agent
Bert Nj. Thomas to come TO the Islands
to organize this district, and he will
bring the necessary forms and revenue
stamps with him. When he starts in,
and upon a certain day he will undoubt-
edly require the merchants and trades
men here to take account of all stocks
upon which revenue stamps Will be re-
quired and place upon each package
some Identifying mark as well as GER
tificate that he will probably adopt SO
that each package in that district shall
have some internal revenue mark.
Thereafter each withdrawal from bond
ed warehouse or from new arrivals will
have to be stamped and all new impor-
tations will be seized if they do not
bear proper internal revenue marks,
brands and stamps. The stock taking
will be the basis for the opening of the
internal revenue account. AS to goods
in bond on June IA, it is believed that
| they will be treated as foreign mer-
chandise, regardless of where they orig
| mated. The customs and internal rev
enue divisions of the treasury depart
ment are not coordinate, and 1t may
be that whatever liquors are in bond
on the date named will be held up pend
ing rulings from the department unless
! ruling is obtained before that date
! Under United States laws, American
/ liquors pay an internal revenue tax of
81. 10 a gallon, and foreign liquors pay
a tariff duty on Importation of S2.25
gallon. So that the question of how
| liquors now here in bond will be treated
/ is one of very great Importance to
| liquor dealers If they are treated as
! foreign goods dealers will have to pay
an import duty of S.. % a gallon. If
| they are treated as American goods
they will only have to pay the internal
revenue duty of S1.1O a gallon.
f. c. Macfarlane contends that Am
erican liquors in bond on and after
! June II should not be treated as foreign
/ goods, and should only be subject to
the payment of 81 10 a gallon, the
amount of the internal revenue tax, and
not 1925 a gallon, the import duty.
However, the information is received
that the Treasury Department will
treat American liquors in bond here as
foreign goods, and will require the pay
ment of $2.25 a gallon. the amount OF
the import duty. Mr., Macfarlane inti-
mates that he has an attorney in Wash
ington contesting this point, and seek
ing to secure a ruling that American
liquors in bond shall only pay the in
ternal revenue tax.
Under the internal revenue laws Of
the United States, every dealer in TO-
baccO. cigarettes cigars. wines liquors
and beers, will have to secure a license
from the internal revenue department,
in addition to his local license
The cost of wines, liquors and beer
will be changed somewhat by the effect
of the new laws. For instance, beer will
be a little higher, for it will have to
pay an internal revenue tax equal to
fifteen cents barrel of bottled beer.
American liquors will be a little cheap
err, as they will have to pay no import
duty, but will have to pay the internal
revenue tax of $1.10 gallon. Cham
pagne and other foreign wines will be
a little higher, as the import duty will
be higher,
In the adjustment of these differences
of cost in fixing the prices, 1t is thought
that the increase in the cost of one VIII
about offset the decrease in cost of 9TH
ers. In some cases the wholesaler s
profit will lsuffer little. and in other
cases the retailers profit will suffer a
, little. and in some other cases the con-
; sumers cost will increase.