New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-20
TO REFORM REVENUE LAW.
4 PLAN FOR REVISION.
Tar on Alcohol the Most Pressing
Question.
[FaoM THE TRIBUNE BUREAU

washington Nov 19.-At the request Of MEM
bers Of the Ways and Means Committee, a draft
of bill providing for a revision of the internal
revenue laws in many important particulars has
been prepared by the government bureau. and it
is now in the hands of Representative Serene Z.
Payne the chairman of the committee This leg
isation is proposed because of the apparent
need of an intelligent and satisfactory modif-
cation of the statutes. In addition to this. the
tobacco interests expected TO press many
claims when the internal revenue question is
opened for discussion The tobacco growers will
promptly renew their fight for the abolition of
the tax of six cents pound leaf tobacco. A
bill providing for this relief passed the House
at the last session. but died In the Senate. While
the contemplated revision would indirectly af-
feet the tax on whskey it would not in the
opinion OF those who in position to know.
reduce much. If at all, the present rate of taxa
ton, which so materially contributes to the run
ming expenses OF the government
PROPOSED CHANGE IN ALCOHOL TAX.
The most pressing question to be considered is
that Of the tax on alcohol. Grain alcohol, tech
nically ethyl alcohol is subject to the internal
revenue tax of 81 10 proof gallon. Wood. or
methyl. alcohol is subject to tax. and is not
even under the supervision OF the government In
its manufacture or sale. Alcohol is used ex-
tensvely in the arts and manufactures. and for
most purposes the wood alcohol is considered
as good industrially, as the grain. The impo-
sltion of the high tax on the ethyl alcohol prac-
tcally amounts 1t Is declared, to prohibition. as
the cheaper wood product is used wherever pos
sibe. This is entirely aside from the use of the
poisonous wood alcohol in beverages, such as
was recently brought to public notice in the
West Side saloon cases in New-York, where
many deaths resulted from drinking ''whiskey"
I,1bic ad oP all a M
In paints and varnishes. in the manufacture Of
hats in perfumes, colognes and cosmetics and
in medicines alcohol is an important consldera-
ton. In the hat industry alcohol is used TO dis
solve the shellac for making stiffening, and the
item of its cost is great that the hat manu-
facturers of the country WILL it Is believed, use
every effort to bring about a change in condt-
lions. In other countries alcohol for use in
| manufactures is not taxed when withdrawn
from bond for use after being so treated as TO
render it unfit for drinking purposes.
In 1897 the Commissioner of Internal Revenue
recommended that provision be made for rebate
of the tax on grain alcohol used in the arts and
manufactures. The question has been discussed
frequently and at length in Congress since that
time and It is predicted that it may now receive
| the favorable consideration of the Committee on
! Ways and Means
Wood alcohol of a grade pure enough for
the wine gallon The best grade Of wood al
| cohoI which may be used in perfumes and cos
| metics and which has been used extensively in
| making bad 'whiSkey, is called Columbian
| spirits, and sells for 81 so a wine gallon pure
! grain alcohol, which Is odorless, COlorleSS and
| tasteless, pays a tax of 81 10 the proof gallon.
| or about 81 0s the wine gallon. 1t is pointed
| out that If the tax were removed the grain
alcohol would sell for manufacturing purposes
| at aboM 80 cents the wine gallon The indus
| trial Importance of the proposed change is APP
/ n n he a al
| actual cost of IL to 10 cents the wine gallon.
| Wood alcohol costs seven or eight times as
| much. The grain alcohol would. of course
! gain the market of the arts if there were no
| tax Naturally, the wood alcohol interests will
| isnt lne chahge. Inc producers Oh grain alco-
| hol are said to be backed by the agricultural
| interests and by the manufacturers generally
who use alcohol in their processes.
UNDER GOVERNMENT SUPERVISION.
An important proposition is to place the making
| and selling of wood alcohol under government
| supervision by the imposition of small tax.
| In this way, It is contended, the government
| would be able to protect the public against the
| use OF wood alcohol in beverages. Samples of
! the 'Whiskey which was fatal to so many New
Workers in the Stryker's Farms neighborhood,
examined by DIR. Champion, the chemist of the
Internal Revenue Bureau, were found to contain
nothing but wood alcohol and cOlOring matter.
| Such compound IS not forfeitable and a person
selling II is not amenable TO the revenue laws.
He has sold a tax free article compounded of tax
free ingredients. When the smallest per-
Cenldse OF aiConOl Is OSeC, as was the CaSS
in some OF the samples from New York, the
revenue officers have jurisdiction, but not other
wise.
In the consideration of this question. the effect
on the revenue will be fully considered. It is
understood that some members OF the committee
are in favor OF retaining the tax grain alcohol
and of equalizing conditions by imposing a tax
on the wood product. In official circles il is be
lieved that the whole matter of a revision Of the
internal revenue laws will be taken up and exc
haustively discussed within a comparatively
short time with a view to making such modfca-
lions as may be deemed necessary.