Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1901-04-06
BEER RTAXr
gS L
Reduction Is Not
Enough.
Prices Of Materials Have
!, !. Il. Increased.
E tts Il, #, /.
Retailers CIaimthe Bene-
f..s fit Of Reduction.
How a Brewers Journal Sizes Up
the Situation.

The Washington Sentinel representa-,
, tive of the brewery interests takes
the following stand with reference
to the reduction of the tax ON beer:
=, !, AS, the time approaches to put into
effect the new rate on beer and brew
.ers are beginning .tos figure on the
/; effect sit will ha ee on their business.
they are confronted with evidence
, that the measure Of relief tioled out to
them Is far, from. satisfactory. Nine
million dollars seems like a large sum,
but ii is found that, on investigation,
and after a review, of the conditions
today, so changed in every respect
/, from what they were three years ago
/. when the higher rate was imposed,
that % cents reduction in their tax
.. will not begin to meet the new situa,
ton.
3 Business is booming, but this very
boom in business has a most demoral-
] izing effect on the brewing industry.
price of goods used in their occupa.
+. tlon, exceeds in itself the reduction al
lowed them. Information received
at this office day or two ago. from
our travelling representative in Phila,
delphia, indicates that brewers ma
terials have advanced in price fully
40 per cent. This is due to increased
orders for every line of goods, at home
and abroad, with the usual result of
enhanced cost of raw material. labor
and operating expenses of all kinds.
The concession of % per cent in their
war tax, having in mind the small
proportion this tax bears to the total
cost of production Of a barrel of beer,
goes hut short distance in covering
the 40 per cent increase complained
of. This Is not encouraging, and
when 1t is remembered that July 1st
will undoubtedly see demands for a
share in the distribution of the gov
brewers may well ask themselves how
or when their calling is to participate
in the much -heralded business re-
vival -
Retailers who have paid, wholly or
in part. this tax, are counting on re-
ceiving the benefits of Congressional
favor, small as it was, for themselves.
Rumors are even current that con-
certed move in this direction is con,
templated. Labor Is uneasy, as I'M
doubtedly it has a right to he. Liv
ing expenses appreciably reflect bust
ness booms much quicker than in.
creases of wages respond to them.
From this unrest brewers will suffer
and uniustly so. The upward ten.
dency in prices Is not a result of war
tax reduction. 1t began with the opening
of hostlities and has steadily con-
tinued. The additional expenditures
it entailed, in addition to the tax itself,
without resort to reduced wages, or
practically a raise in prices. On Is
shoulders fell the burden of sustain
ing a rising market on decreased sales
and doubled tax. Action that con-
templates q demand Oh the pitrance
of 25 cents per barrel less granted to
beer exhibits II misunderstanding of
actual conditions, Il lack of apprecia-
ton of fair dealing and a disregard
of the consideration shown by brew
ers for their customers and employees
that hardly admits of belief.
The spectre is there, however, and il
behooves those interested to move In
their own defense. Opposition, under
present circumstances, will not avail
The evil is that Congress and that
@body should be made to face the
z. responsibility and remove the causes
4 that threaten disturbance in busi
ness circles as deplorable as it would
be unwise and uncalled for. The
error lies in the attempt to make one
industry assume Il share of the gov
ernment's liabilities beyond it's power
to. bear. Experience has shown thai
beer cannot pay a tax of Sl.So al
any time. Experience-btter when toe
late, it will be found to be-will again
show that in the extraordinary crisis
$1.6O per barrell is too heavy an i'm
post. 1t will be paid-it must be
paid-until further relief is given.
Relief will not come simply by ask
Ing. Whatever the cause, the impres
sion is general that beer can stand
any tax asked of it. While Revision
of war revenues was under discus
sion the press of the country took 9
lively interest in the subject. Every
item in the list had its advocates
beer had them too-but they were moi
found In the large dailcs, unless pat
for In advertisements or at so mucl
line. The strongest opponents Of beel
tax reduction We're found in the press
The heavy expenses necessitated hy
the governments foreign ventures nc
doubt milatatel against greater de
creases in revenues-as potent power
In influencing Congressional action In
imical to beer was the press.
This unfriendly spirit must be re
moved. Public opinion must bC
aroused to the material losses thai
will follow over-taxation of the brew
ing business, losses In which