The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1907-03-29

in all sections of the country in the |
amendments to the denatured alcohol
law enacted at the recent session of
congress shows that the people of the
United States are more than ever de-
.sirous that the policy of tax-free al
cohol for industrial purposes shall
have a full and fair trial, under the
most favorable conditions. No otheri
economic question discussed In con-
gress during recent years has received
half as much attention from the farm
ers, manufacturers, business organiza-
lions and general public as the propo-
sition to exempt from internal revenue
taxation alcohol made unfit for bever-
age purposes, and the sentiment in
favor of the most liberal legislation
governing the production, distribution
ial is overwhelming.
History of the Legislation.
In view of the general misunders
standing which seems to exist as to;
the nature and effect of the legislation
enacted by congress on this subject, Il
think il desirable to explain briefly the
|'object of the law of June Z, 1905,
which took effect Jan. /, 1907, and the
amendments to this law, enacted
March q, which viii 60 into effect
Sept. 4, 1907.
The original law was intended to
permit the use, free OF internal rev.
enue tax, of all alcohol rendered unfit
for consumption as a beverage, under
regulations to be prescribed by the
commissioners of internal revenue. At
sAf ffcs or1fs ls,x
was supposed to be entirely satisfac-i
tory both to the producers and con-
sumers of Industrial alcohol, but it
was found that the laws governing the.
production of distilled spirits" un-
der which term alcohol and alcoholic
lcompounds are taxed, imposed condfLs
tions which tended to confine the pro-
duction of alcohol to large distilleries,
and to make it's manufacture by farm
ers or other persons on a small scale
Itoo expensive to be practicable. 1t
was also found, that denatured alcohol
could not be shipped in tank cars, a.
I1nethod of transportation which was
highly desirable, as effecting a consid-
cradle reduction in its cost.
AS l had taken a deep interest in
the matter, was naturally called
\ upon by my constituents in North Da-
| kota and the advocates of untaxed
Ialcohol@ throughout the country to aid
lin perfecting the laws relating to this
Isubject so as to give the public all
the benefits which it was expected
1 would be derived from the use of this
new material. Early in the recent
session of congress introduced in the
senate bill authorizing the use of
small alcohol plants by farmers with
out the constant supervision of a gov
eminent officer, and similar bills were
1 subsequently, introduced in the house.
fThe mature of, the desired amendments
twas carefully gone into by the COM
mittee on ways and means, and the
bill introduced by Congressman Hill
lof Connecticut, providing for the nee
essary changes in the former laws,
Twas promptly passed by the house.
Opposition of Powerful interests.
l When this bill reached the senate
La violent opposition developed on the
part of certain distillers. who pro-
Tested against the provisions for small
1 farm concerns, central denaturing
warehouses and the transportation of
i alcohol in tank cars. For a time 1t
fseemed that the selfish interests of
these distillers would prevail, but the
\ influence of the farmers of the coun-
II try particularly those acting through
i tho great organization known as the
National Grange. Patrons of Hus-
4 bandry,) and of the manufacturers in
the alcohol using industries proved SO
strong that in spite of the opposition
which favored an amendment of the
house bill that would practically null
|ilify its most important sections. the
senate by vote of AZ to 16 struck out
an amendment to this effect inserted
II by the committee on finance. and
n In addition to the provisions allowing
the operation of small denatured alco-
hol plants without cumbersome
bonded warehouses, and permitting
the transportation of denatured alco-
hol in tank cars, the act of March q
1907, provides for the use of untaxed
alcohol in the manufacture Of sui
phuric ether, which had been pro-
hibited under the construction placed
upon the original law. and for the
establishment of central denaturing
bonded warehouses, to which alcohol
lproduced at farms or other denatured
Taloohol plants may be shipped and
there denatured. The use of tax-free
IaIcohol in the production of sulphuric
ether will greatly reduce the cost OF
THAT material, and permit its genera
luse for many industrial purposes, one
Iof the most important of which Ii
the production of ethyl chloride, q
material which possesses many ad-
lvantages as a refrigerant for use In
Ismall meat packing establishments
land for similar purposes.
The establishment of denaturint
bonded warehouses in various sections
lof the country, under the more liberia
iterms of the new law, will be direc
tbenefit to the small manufacturers o
industrial alcohol, as they can shiI
their product in tank cars to thes,
warehouses. where the alcohol can b
ldenatured and conveniently shipped
ITO dealers or users.
Il The enactment of these amendment
Iperfects our laws relating to this sub
fject so that it is believed they ar
. ,.,x,, t1.a tx.f,of 1iharal anssv4 ~