Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1909-05-20
KENDALL Bill.
TO DOUBLE TAX
SIXTH DISTRICT MEMBERS AIMS
TO INCREASE RECEIPTS AND
PROTECT DRY COUNTIES

PROTECT DRY COUNTIES
Washington. d. c., May 17.-Repre-
sentative Kendall, of Iowa, has intro
duced bill in congress to double the
Internal revenue tax paid the govern
ment by brewers and wholesale and
retail liquor dealers. Mr.. Kendall's
measure also prohibits the collection
OF such taxes in prohibition commun-
tiles.
The latter provision of the Kendall
bill Is the more important, as 1t is in
tended to enlist the aid of the govern
ment as we'll as the state in the pros
ecution Of illegal liquor dealers in
prohibition towns or counties. AT
present even the bootlegger usually
takes the precaution to appease Uncle
Sam by paying the internal revenue
tax before attempting the sale Of
liquors in prohibition territory, for he
generally Is more in fear of the Wig
lance of United States officers and
has greater terror Of the federal courts
than he has of state authorities.
II the Kendall amendment should be-
come law, however, the government
would become party to the enforce
ment of the prohibitory law In "dry"
territory, for any sale of liquor In such
communities would be In violation Of
federal as well as state law, since the
dealer could not obtain an internal
revenue license from the government
under the Kendall amendment, and al
so would be barred by federal law
with !,
paid the government tax.
No Tax In Dry Districts.
The Kendall amendment provides in
this regard that none of the special
government taxes on brewers or
liquor dealers shall be assessed
against, imposed upon or collected
from any person. firm, partnership, as
ISOLATION or corporation If the bust
ness to be transacted by such person,
firm, partnership. association or cor
poration Is prohibited by the laws of
any state In effect at the place where
said business Is to be transacted" 1t
will be noticed that this wording of
the Kendall bill makes it applicable to
local option as well as to prohibition
states. For this reason It Is expected
to receive much stronger support in
congress than otherwise might be ac-
corded a proposition applying to dry"
states alone.
Numerous attempts have been made
to obtain the assistance of the gov
eminent In the enforcement of prohi-
billion In "dry" states, but none has
met with the encouragement that al
ready has been given the Kendall plan
owing to its feasibility and adaptable.
ity to local option towns and counties
as well as entire states.
Would Double Liquor Tax.
| AS revenue producing measure Mr..
Kendall's proposition to double the in
ternal revenue taxes paid by brewers,
distillers and liquor dealers also will
attract serious attention from n con-
gress that is confronted with ire
mendous deficit which the present tar
If bill does not give much promise of
providing sufficient receipts to over
come. In 1907 the government Ne
ceived for the manufacture and sale of
malt liquors and distilled spirits a to-
tai of $7,295,000. If the Kendall
| license duties had been in force that
year the government would have re.
ceived $14, 100000, instead of Just half
that amount.
It is anticipated, however, that the
Kendall amendment prohibiting the
collection of internal revenue taxes in
dry" communities will prevent a
complete doubling of the amount now
received from that source and that the
increased tax will make it Improbable
| for many liquor dealers to continue in
business even in wet" communities
This heavy tax will be almost death
blow for the bootlegger and the "hole
In the wall" that heretofore have
avoided trouble with Uncle Sam by
paying the small government tax. Bu
allowing for all these decreases in the
number of liquor taxpayers, it is be
lieyed that doubling the tax will ado
fully S5,000,000 year to the govern
ment's income.
Table Of Comparison.
The following table is a comparison
of the annual internal revenue take.
now paid by brewers, distillers ant
| liquor dealers and the rate proposed
by Mr.. Kendall in his bill, which ha,
been referred to the house committee
on ways and means:
Present Kendall
Tax. Ia,
Brewers Qess than 500 bbls.)$ so $10t
Brewers. 500 bbls or more. 100 20'
Manufacturers of stills. .... so 10,
Extra for each still made. 20 Al
Rectifiers distilled SPIRITS. 200 40'
Retail dealers in liquor. 49,. rs 81
Wholesale dealers in liquor. 100 20'
Retail dealers in malt liquors 20 Al
| Wholesale dealers in malt
liquors so 1Oj