The Washington herald., 1914-05-11
PROHIBITION RESULTING.
in INCREASED TAXES.
Views on Regulation by Big Factors
in, Southern Mills-Examples !.
Show III Effects.
INSURANCE is HEAVILY TAXED

New York, May ,l0-In the gathering
Of several hundred Representative
manufacturers. chiefly from the South
at the convention. Of the American
Cotton Manufacturer Association held
| at the Waldorf. an opportunity was al
forded, to ascertain their attitude or
the question OF national prohibition.
These manufacturers Of cotton yarns
and cotton cloths have their mill.
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 or
the liquor question was as far as leg
Islation should go. Others were en-
phatic In declaring that national leg
islation would be innicting added bur
dens to States and to business In gen.
eraL
The views of one Of the large mill
men were as follows:
The liquor Industry pays S250.o00,-
900 each year the government. In the
event OF national prohibition and the
destruction Of this industry. this reve-
nue. of the government would also be
wiped out. Where would the money
come from, to meet the deficiency!
The government would not be the
loser: II would simply raise the reve-
nue. In another way.
THE corporations would be the first
TO feel the effects of national prohi-
bition. in the way of increased taxa
ton. The railroads. many OF them
now operating under difficulties, would
be crushed under heavy taxation that
would necessarily be imposed upon
them; IL the government lost the reve-
nue. 1t receives from the liquor indus
try
THE life insurance companies would be
hard hit: in fact, they already have felt
the effects of Statewide prohibition. in
more than one instance. In Tennessee
today, they are protesting against bur-
den that they are no longer able to
carry. The Nashville Association OF Life
Underwriters led by President w. A.
Alexander and Reau Z. Folk, former
State insurance commissioner. Is prepar-
ing 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-fifteenth of all the
taxes Of every kind collected by the
State. When Tennessee voted out the
saloons 1t did not stop to reckon about
the revenues 1t voted out at the same
time. The life insurance companies and
other corporations doing business in the
"In Oklahoma. another dry State. the
life Insurance companies are also paying
the piper. The October issue of the
Spectator. giving the monthly casualty
and surety reports, quoted $40 per cent
ratio Of losses paid in that prohibition
territory. The losses paid total consid-
erably more than half the total premi-
ums received.
I'm Alabama, as one result Of the ex-
pertinent with Statewide prohibition. a
license schedule covers every possible
utility and means of livelihood The cot
ton buyer or broker was compelled to
pay an annual license of 500: the ware
house proprietor was taxed like sum:
the man operating a cotton press paid
500; tn maenufacturrs Of crackers paeid
80: the coal peddler was taxed SO for
every wagon he used: no one escaped the
tax gatherer. With the repeal of the
prohibitory laws, came a repeal Of the
license schedule. The revenues from
the liquor industry made it possible for
to exist. and lifted the
burden of excessive taxation