The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-09-21
Ia WHEY SEES A
CHANGE FOR TAX.
Would Make Patent Medicines
Containing Much Alcohol Help
Dissipate the Deficit.
BY w. w. Jermane.

Washington, Sept. 21.-Representa-
tive Tawney, the Minnesota member Of
the house ways and means committee,
inclines to the opinion that increas-
ing treasury receipts will make it I'M
necessary for congress to undertake ex
tensive revenue legislation at the next
session. He thinks that increased re-
ceipts and a reduction Of expenditures
will perhaps keep the deficit from in
creasing, and possibly reduce it materi-
ally. .-11--.,-
In this connection he offers the fol
lowing suggestion regarding a possible
new source of revenue: "There is one
small source OF revenue, which we
have overlooked up to this time, that
may be inquired into at the coming SEES
sion. That is the matter of placing
suitable tax upon patent medicines
containing large percentages of alco,-
hol. The commissioner of internal
revenue a short time ago rendered
decision that affects these medicines,
but his decision deals with those med
icines that have comparatively little
medicinal qualities and contain much
alcohol. It seems to me that any pat
ties of alcohol, regardless Of it's medi-
cinal ingredients, ought to pay a tax
in accordance with the proportions of
alcohol contained. I have not gone
into this question fully, but I shall
| investigate it with care -
Mr.. Tawney is one of several con-
! gressmen having this same subject in
mind. The patent medicine people see
that at a; fight fta is ahead ada and propose to
pose special taxes upon them. .
They claim that the alcohol that is
used has already paid taxes. The po-
| sition Of members of congress who ap-
| parently favor additional taxes is that
these medicines are widely used in
prohibition communities, where even
the mildest of alcoholic drinks are ex-
cluded. 1t is alleged that the effect
is bad on the people, who exceed the
their use Of the alcohol in the medi-
| cines.
The fact that the deficit of the
| treasury so far this fiscal year is only
| l3,504,O88, against $2l ,63S, 291 at this
| time a year ago, is considered an in
dication that the situation will not be
bad at the close of the year. So
Treasury Opinions and Figures.
Many treasury experts think there
next few months that viii place the
treasury as far behind as ever The re
4 ceipts of Uncle Sam so far this fiscal
year amount to $12S, 795, POI, while the
total to this time year ago was $121,-
292, 427-an increase for this year Of
about $7,50O,OO0. This increase is
largely in customs revenues.
! Expenditures in the present year are
not falling behind last year to an ex;
tent worth mentioning. The total paid
out to date amounts to $142, 299, 240, as
against $142,930,779 year ago. It is
almost the unanimous belief that the
expenditure, of the present fiscal year
which ends June 80, 1906, will greatly
exceed those of the year just ended
The receipts will have to hold their
present increase to keep the deficit
i down below that of the last fiscal year.
Is Effect on Railroad Rate Regulation.
/ |s ~ These treasury figures and opinions
are interesting at this time, when the
public is trying to ascertain the prob.
4 abilities for revenue legislation at the
next session of congress. A treasury
situation demanding revenue legislation
would undoubtedly give aid and com.
fort to those, interests which oppose
railroad rate Legislation. These inter.
ests would endeavor to focus public at
tent1on on revenue matters, thus hoping
to sidetrack the railroad question: Fol
this reason the friends of railroad leg
lslatlon should keep a sharp lookout on
the federal treasury for the next few
months. *a'~@
Senator Elkins, leader Of the railroad
party in congress, sees the possibilities
of this situation, for in a New York in
terview he discusses the proba bility OF
tariff and general revenue Legislation
with much seriousness, limiting strongly
, that such legislation will probably be
necessary next winter.