The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-21
SEES THE HAND
OF The TRUSTS
y. o. ELIEL SUSPICIOUS OF PRO
POSED WOOD ALCOHOL TAX.
He Believes the Plan Will Eventually
Result in Reducing the Grain Alco-
hol Tax for the Benefit Of Certain
Big Industrial Trusts Revenue Of
fcer Thinks Project Fallacious.

+. G.. Eliel Of the Lyman Eliel whole
sale drug company declared today that |
the bill introduced by Congressman j.
A. Tawney to tax wood alcohol has |
much more back of it than appears on |
the surface. In fact, he believes it is
one step in the war waged by the trusts
which use grain alcohol in their fac
tories, to have the tax on grain alco |
hol reduced and to knock out their COM
petitors who are able to use wood alco-
hol in the manufacture Of cheaper
grade of goods.
one, y said Mr.. Eliel t1The tax on
wood alcohol is in the nature Of retail
atory legislation on sthe part Of the
manufacturer who uses taxed grain
alcohol. ,5
"No article of commerce is taxed to
| the extent of grain alcohol and no other
article would stand such tax. The
upon the cost Of corn. Perhaps an av-
erage price for grain alcohol on the
market aside from the tax is 20 cents
q gallon. This article then, costing
all the way from Is cents to 90 cents a
gallon to produce, bears a tax of $2.08
a wine or running gallon:
change Of tax on alcohol, it must be re-
membered that alcohol is the one great
universal solvent, that hardly anything
is manufactured without its use; fur
Their that the price Of every manufac-
tured commodity using alcohol as a
solvent is today adjusted on the basis
Of the above tax. ..fs % =
T Revenue Is Necessary.
+ "Let it be remembered also in con-
nection with this matter that if our
government is to dig canals and build
ships, it must have revenue. In fact
l it must have at least it's present reve
t nue.. Cut off $75,000,000 or 100000
! Of the tax on spirits and what will be
t the result? Something else will be
= taxed or more heavily taxed to make
: up the deficiency. In other words, the
s consumer, who in any event pays the
tax, pays it in a different form, but how
n about the trust and the large manufac
g turer using grain alcoholic If the tai
+ should be reduced, are we quite sur
o that he will CORRESPONDENCE reduce hi
g prices9, If SO, where is his gain and VIII.
,, his intense desire for the changer
d "The machinery necessary for tn
collection Of the present tax is the out
d come Of many years of experience, an
a is running smoothly. Since the govern
o ment must have the revenue, it is hes
r, to leave we'll enough. alone, and Their
{, is no reason why the people should max
= a present to the trust. Should WOO
dlCOuOl 10 GdAod, do 10 dAA e1COuoA,
; would Of course simply add to the rev
enue and add to the expense of thos
le articles in which today it enters as
l. solvent, but, it is also to be remem
:: bered, and this is probably the reaso
IL for the bil1,' that taxed wood alcoht
s, would be less of a competitor than it
10 at present. .-'s''A - '>sT 1''SS@ :.
re "Theret is also another. side of tn
O. question:. Wood alcohol is used in
s. hundred ways by the small consume
for all sorts of purposes. i. It. is esp
Fl cially valuable for cleansing purpose
in winter where water would freeze. /
fact, there are hundred ways in whic
it is used. To add the tax would plae
=. it beyond the reach of such consun
W ers. -. .-,.4s..s~s ~. ..-...-. -S r, !:
Thinks Plan Fallacious.
Il, "The argument advanced that tt
an taxing Of wood alcohol by the intern
IN revenue department will keep it's ma:
no ufacture under the eyes Of the deput
~ inspectors, seems to me to be a fall
81 cy,' - said H. F. Dams of the intern
Cd 81 revenue department today. "A1 thu
. al would be necessary would be to issa
81 81 an order to the inspectors. They a.
,1e empowered to investigate any manufa
" turer 8 business who they may think
4Lo 1ouc -