The San Francisco call., 1908-12-06
Percy T. Morgan Says Con-
gressional Committee Was
Impressed by Growers Case
Removal of Regulation Against
Fortified Sweet Wines Will
Increase Revenue
Revocation of the Reciprocity
Treaties, Permitting Adnlter-
alton, Seems Assured

That the tariff will be revised to the
advantage OF the wine industry IN CAL
ifornia is the firm belief Of Percy T
Morgan, president of the California
wine growers association. who re-
turned from Washington yesterday. As
member of the tariff revision com
mittee appointed by the governor. he
presented the grievance of the growers
10 the ways and means committee OF
congress. Morgan also obtained an i'm
portant concession from the bureau OF
internal revenue in the removal OF the
regulation against the use OF fortified
sweet wines in medicinal preparations
This measure will mean an increased
annual revenue OF s1.000.O00 for Cali
fornia in sales alone, to say nothing OF
the advance in price per gallon
Under the Dingiey tariff the duty on
foreign wines was 40 cents a gallon for
dry and so cents for fortified wines.
This was changed by reciprocity agree
ments with foreign nations to a nat
rate of 50 cents a gallon. although dry
wines contain less than IA per cent OF
alcohol and fortified wines from IA TO
"a per cent Under this arrangement
the importation of foreign wines has
Increased 1000 per cent and the con-
sumption of native wine in this coun-
try has decreased proportionately. The
reciprocity treaties also made II possf-
BILE for foreign countries to get alco-
hol in the form of wine into this coun-
try at the rate OF 73 cents per proof
gallon, while the domestic product is
! handicapped with an internal revenue
duty OF S110.
WINE GROWERS HANDICAPPED
California wine growers are particu-
trly handicapped by the freight rate
New York, which amounts to cents
gallon; by the fact that cost OF pro-
nction in this state is 20 or 30 per
cent greater than. in France and Italy
where the bulk OF the imported wines.
come from, and by the fact that there
is no tax on imported bottles contain
ing wine, whereas empty bottles, which
must be used in California because
satisfactory ones can not be made here,
are charged with an import tax
Morgan's able presentation OF the
case or the California wine growers be-
fore the ways and means committee at
Washington was the subject of com
ment in the eastern press, and IL was
generally remarked that he was the
best informed witness that had ap-
peared before the committee.
PATIENT HEARING GRANTED
Our committee was most courteous
| ly treated by the congressman" said
/ Morgan yesterday, and we are most
! fortunate in having the assistance OF
! Congressman Needham as our repre-
/ resentative -on the ways and means
/ committee. and W. R. Wheeler, the as
/ SiStant secretary of commerce and Ia
/ Dor. Both these men are keenly alive
TO the interests of this state.
i have always found that when one
I 70 ourf
matter one desires to present and no
matter what committee or department
/ one has to reach. a patient and atten-
tive hearing is always granted.
This has been particularly shown in
1 the case OF the wine growers with the
bureau OF internal revenue. Three times
arguments were presented and each
/ time some concession was granted
which appeared to be warranted by the
/ facts in the case.
The last concession was a most I'm
portant one. Fortified sweet wines
may now be used in medicinal prep
arations, and this means that from two
/ to two and half million gallons OF
/ California wine which would have re-
mained in the hands OF the growers
/ will now be sold. This will increase
I the growers revenue by $1,000. 900. and
will also affect the market TO the ex-
tent OF another million in increased
| prices.
REIMBURSEMENT Is EXPECTED
The ways and means committee lis
/ tened attentively to our arguments,
/ questioning frequently.
/ Il urged a readjustment OF the tar
] iff as to case wines and a dinerentia-
ton between wines containing only the
natural alcohol and those containing
added alcohol
only the rarest kind OF grapes
would make wine containing "a per
i cent alcohol, yet the foreigner sends
to this country wines OF much more
than this strength, having strengthened
them by adding distilled grain spirits
These goods are imported at the re-
/ ciprocity rate and weakened aftterward
/ TO suit the taste. Yet California grow
/ ers under the pure food law are de-
| barred by law from f0rtifyinss their
4 goods with distilled spirits.
The reciprocity treaties not only
permit wine producers abroad to add
distilled spirits to the naturally fer
! mented wines, but connive at the prac-
tice.
Great interest was displayed in our
case. and il is a foregone conclusion
that the treaties will be revoked and
a measure more beneficial 10 the wine
industry in California enacted"