Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1914-05-11
EFFECTs OF PROHIBITION.
com ooo Gao Dollars Paid by Liquor
Traffic Would be Made up IN
Some Other Way.

New York, May 11.--Tn the gath
erjDp Of several hundred representa-
tive manufacturers, chiefly from the
South, at the convention, of the
American Cotton Manufacturers
Association held at the Waldorf, an
opportunity, was afforded, to aScer-
tain their attitud on the question OF
national prohibition.
These manufacturers Of cotton
yarns and cotton cloths have their
mills throughout the South, as well
as some in the East, and employ
thousands of operators. Many OF
them expressed the view that local
or State option on the liquor ques-
tion was as far as Legislation should
90. Others were emphatic in declar-
ing that national legislation would
be inflicting added burdens to
States and to business in general.
The views of one of the large mill
men were as follows:
"The liquor industry pays $780,
900 900 each year to the government.
In the event of national prohibition
and the destruction of this industry,
this revenue of the government
would also be wiped out. Where
would the money come from, to
meet the deficiency? The govern
ment would not be the loser; it
would simply raise the revenue IN
another way.
"Thc corporations would be the
first to feel the effects of national
prohibition, in the way Of Increased
taxation. The railroads, many OF
them now operating under difficult
ties, would be crushed under heavy
taxation that wouldnecesSariy be I'M
posed upon them; if the government
lost the revenue it receives from the
liquor industry.
"The life insurance companies
would be hard hit; in fact, they al
ready have felt the effects OF State
wide prohibition, in more than one
instance. III Tennessee today, they
are protesting against burden that
they are no longer able to carry
The Nashville Association of Life
Underwriters, led by President ".
A. Alexander ard Reaa Z. Folk, Tor
mer State insurance commissioner,
is preparing to make a determined
fight against the burdensome taxes
imposed on life insurance companies
in that dry State. Under dry regime,
the life insurance companies pay
one-ffteenth of all the taxes Of eY-
'ery kind collected by the State.
When Tennessee voted out the sa-
looms it did not stop to reckon about
1.-THE revenues it voted out at the same
time. The life insurance companies
and other corporations doing busl-
ness in tic State are now doing the
figuring.
In Oklahoma, another dry State.
the life insurance companies are also
paving the piper. The October Is
sue of the Spectator, giving the
monthly casualty and surety reports
quoted 54.2 per cent ratio Of losses
paid in that prohibition territory.
The losses paid GotaL considerably
more than half the total premiums
received.
an Alabama. as one result Of the
experiment with Statewide prohloi-
ton, a license schedule covers eV-
cry possible utility and means OF
livelihood Cotton buyer or broker,
was compelled to pay an annual IL
cense of 500: the warehouse pro-
prietor was taxed a like sum; the
man operating a cotton press paid
! 5000; the manufacturers Of crackers
paid $75; the coal peddlcr was taxed
SO for every wagon he used; no one
fescaped the tax gagherer. With the
repeal Of the prohihtoyy laws, came
repeal of the license schedule. The
revenues from the liquor industry
made it possible for business inter-
Tests to exist. and lifted the burden
1 Of excessive taxation"