Los Angeles herald., 1908-07-01

standpoint, ana one WnlCn 10 some ex-
tent may account for the increased re-
ceipts from the tax on ferf1ented
liquors, was introduced during the fis-
cal year just closing, almost entirely
as a result of the activity of the pro-
hibitionists. This Is substance be-
coming officially and popularity known
as Temperance beer" 1t Is the Off
spring of the demand and desire for a
beverage to be sold in the prohibition
localities that Will at one and the same
time escape the federal special tax or
'government license" and avoid prose-
cution in the state courts for Violat-
ing the local option laws. This tenn
perance beer" masquerades under
various names, such as "Near-to-
Beer" and other suggestive titles. The
scheme has proved quite successful as
a money maker and those citizens in
the prohibition communities who con-
tlnue to banker after "the cup that
cheers have been able in some meas
ure to satisfy their appetites through
the use of this product. Some pecu-
liar situations, from a fiscal stand
point, have resulted from the manu-
facture and sale of this so-called
Temperance BEER
1t has been held in certain prohibi-
ton localities that beverages contain
ing less than per cent of alcohol are
Notwithstanding, and that they, there
fore, can be sold without violating the
local option law; hence in some places
persons are paying the federal tax as
wholesale dealers in malt liquors and
handling lager beer with slightly alco-
holic content In the face Of local laws
passed for the purpose of driving out
all such supposedly evil substances. In
other localities the courts have held
practically that any beverage which
subjects the dealer to the federal spe-
cial tax cannot be sold under the local
option laws infiicting penalties for the
sale of Intoxicating liquors. Here
again the Temperance beer" folks have
found relief. 1t has been held by the
internal revenue bureau that a fer
mented liquor containing less than one
half of / per cent OF alcohol may be
sold by person not holding special
tax stamp as a wholesale or retail
dealer in malt liquors. Some breweries,
therefore, are producing beverages
through the regular processes Of manu-
featuring fernented liquors upon which
they pay the government tax Of 81 per
barrel, after which, by methods of
evaporation, the alcoholic content is re-
duced to less than one-half Of 1 per
cent by volume, and the hquora is then
ready for shipment to the merchant in
the pIOIlDlLlOH COWu, WIFI dil lc6etl re-
quirements fulfilled, and yet with the
most remarkable physical resemblance
to lager beer, in color. foam and odor,
and with the possible additional ad-
vantage that the consumer may be
compelled to increase the dose in order
to reach the proper spot.
One of the mysterious items of
revenue is the sum annually collected
on snuff, which bears the same tax as
that levied on tobacco--6 cents per
pound 1t is true that the receipts for
this fiscal year will show slight de-
crease. but no more than sympathetic
reduction In keeping with the general
decline in the revenues. 1t is very
likely that the official report. judging
from data Just made public, will show
a production of 25,000,000 pounds of
snuff during the twelve months end
ing today. Where this snuff goes, who
uses 1t, and why, nobody knows, unless
it be the large manufacturers In close
touch with the trade. One would sup
pose that with the passing of the snuff
box, now only a memory, and the ad-
vance of civilization on those sections
where clipping is, or was, INDUCED in,
the production of snuff would rapidly
diminish. On the contrary. it shows a
healthy and vigorous growth. Ten
years ago 100000 pounds were tax
paid; last year twice that amount was
produced. Possibly a great deal OF II
is exported.
Notwithstanding the apparent de-
ficit in the receipts from the internal
revenue taxes on tobacco and tobacco
products, generally speaking. 1t is evil
dent that the cigarette habit is still
firmly intrenched-so much so that in
the face of the fact that the consump-
tion of cigars and smoking and chew
ing tobacco has decreased during the
fiscal year just closing, the income
from cigarettes OF all grades shows an
increase. During the fiscaA year 1907,
in round numbers, 5.200,000,000 cigar
cites were tax paid in the United
States This was an increase of trifie
like one hundred million over the year
1906, and taking the last monthly state
ment issued by the internal revenue
bureau as basis the fiscal year 1908
will show the same steady growth.
The spread of the cigarette habit is
the more notable when 1t is remern-
bered that stringent laws prohibiting
the sale of cigarettes or cigarette ma
terials have been enacted in some
states and active crusades made In
many localities by organizations an
tagonistic to the use of the weed in
this form, and also that thousands Of
staggering youths who formerly
smoked the cigarette now parade the
campus with pipes projecting at the
proper angle from their lips.
These are only a few Of the many
varied things with which Uncle Sans
bookkeepers have to do. When thf
books close at 4:30 this afternoon \
will mean million accounts to he
balanced, hundreds of thousands of re-
ports to be made, a thousand books 70
be printed-all In the everyday work
of the government, and all unheedad
by the vast majority of Americans.
Copyright, 1908. by Frederic J. Haskirj
Tomorrow-The American Master Build,r