New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-05-24
UNTAxED ALCOHOL.

The Senate Committee on Finance has re-
spOnded 10 public sentiment by reporting favor
ably the House bill to drop the internal revenue
tax on denatured alcohol used IN the arts or in
industry. Mr.. Aldrich in presenting the report
TO the Senate announced that the bill would be
considered within the next few days, and it's pas
sage is now Il fOregOne conclusion. The Tribune
has heartily supported the movement to abolish
g tax which has handicapped American industry
and which was levied to meet conditions which
no longer exist. Our high tax on alcohol was
justified so long as alcohol was considered
luxury-and a deleterous luxury ut that. We
imposed a rate of 81 10 proof gallon on spirits
because spirits were the base Of intoxicating
beverages and the consumer Of intoxicants was
expected to pay for his indulgence, just as the
consumer OF tobacco pays for his. But since
alcohol has attained a general use in manufact-
ures and is being introduced and exploited every
where as source of heat. light and power. we
find that we are putting ourselves at an economic
disadvantage in taxing "a a luxury what is
rapidly becoming an industrial necessity of the
first srder Other countries have been quicker in
recognizing this fact. and we shall be the last
great commercial and manufacturing nation to
make ethyl or grain alcohol not used in slim
ulants tax free.
The chief obstacle to legislation of this sort
has been the difficulty alleged difficulty. of
discriminating, when duties were to be collected
or RENTED, between the grain alcohol used in
dustrially and that going into liquors and medic
inal preparations. The WilsOn-Gorman tariff
law contained paragraph RENTING the inter
nal revenue tax on alcohol used in the arts
But Secretary Carlisle declared that the Treas
ury could find no effective means of preventing
frauds the revenue If alcohol held in bond
could be withdrawn free on the preteXt that ii
was to be used for one purpose. while a tax of
81 10 proof gallon to be paid on it if
used for another The device Of denaturing the
alcohol and making It undrinkabe has now
furnished the Treasury with the process it
needed. and frauds on the revenue can he easily
avoided by requiring the alcohol TO be denatured
in government warehouses Secretary Carlisle
also feared that the Treasurys income would
be materially reduced by abandoning the tax on
alcohol if used industrially This might have
been the case ten years ago but since then wood
or methyl alcohol. not subject to tax, has come
into use as a u.nufacturing agent and prac-
tically no grain alcohol is now Withdrawn or can
be withdrawn account Of its excessive cost
for manufacturing or for heat. light and power
purposes.
1t Is predicted by the advocates OF the free
alcohol bill that the denatured grain product
can he turned out at a less cost than wood
alcohol. and that it will also compete with oil
gas ana gasolene as an lluminant and motive
force. In tho country especially it is commended
that alcohol will supplant other agencies as
a fuel for stationary engines and for stoves and
lamps. 1t is obvious that great expansion in
the use OF alcohol will make a new market for
corn, beets and the other agricultural products
from Whlch alcohol may he dist The eX-
pertinent which the pending bill! lions il
being eagerly awaited all over the ountrv. for
the general expectation has been aroused that
under it manufacturing will he stimulated and
the cost Of heat. light and power to hundreds
of thousands of consumers will he sensby low
cred