The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-07-09
DRY US. TOCOST
$64O,OOO,OOO IN
LOST REVENUES
Senate Seeks Solution of
War Finance Problem
Raised by Vote.
FOOD BILL IN JEOPARDY
Effort to Be Made to Have
Wilson Eliminate Prohi-
bitiOn Provision.
FOOD BILL IN JEOPARDY

b1ti0n Provision.
WASHINGTON, July s.-The Senate
having voted yesterday to remove
whiskey and similar beverages from the
reach Of the American public by forbid
ding manufacture for the war period
and coupling with this inhibition the
purchase and redistillation of the hun
dreds of millions Of gallons of liquor in
the bonded warehouses. sat back to-day.
drew a long breath and gave thought to
the stupendous financial problem which
its action entails.
To many of the more conservative
Senators, both "wets" and "drys," the
noyance The great revenue bill, the
largest single revenue producing meas
ure ever devised by a national legisla-
ture, is now some $640. 100000 smaller
than It will have to be to meet the needs
of the Government in the remaining
months of the current fiscal year. This
shortage must be made up. 1t was this
which made necessary the withdrawal OF
the war revenue bill on the motion OF
Senator Simmons yesterday that 1t be
recommitted TO the Committee on
Finance.
Senators Seek a Solution.
Having taken stock of the situation
conservative Senators have been casting
about for some solution OF the financial
problem. They will not abate even the
fraction of a step from the position as
in
nation toward a prohibition basis and
yet will not place upon the Treasury
this tremendous burden.
The solution most frequently and most
seriously suggested is that OF amending
the prohibition provisions by return TO
the original Robinson amendment, whlch
simply forbade the use of foods. food
products and feeds in the manufacture
Of potable distillates for the period or
the war and then, by general agreement,
passing the Sheppard resolution amend
ing the Constitution so that after the
adoption of such an amendment the en-
tire nation by change in the basic law OF
the land will be forever bone dry.
A number OF Senators look upon this
suggestion as the most reasonable or all.
The certainty is upon the nation that
withdrawals OF the bonded liquor Will
bc made in vast volume during the next
1
the entire bonded stock can be saved
from the hands of the redistillers for
Industrial uses, but nevertheless an al
ready heavy public demand undoubtedly
will be multiplied many fold and the
consumers, retailers hotel and saloon
keepers and the wholesalers throughout
| the remaining wet" areas OF the United
States can by a little clever financing
accumulate most of the bonded ware
house supply before the law becomes
| effective.
Food Bill Put in Jeopardy.
! Senator Simmons admitted tonight
! that Yesterdays action by the Senate
| had put the food bill in jeopardy. II
| was evident yesterday afternoon at the
| conclusion of the Senate session that
| the opposition has been increased rather
| than diminished by the action OF the
| senate in writing in the Smoot amend
ment. II is a question of great doubt
as to whether falling to obtain unani'
nous consent for a vote on the food bill
| Senator Chamberlain now can muster
| the necessary two-thirds of the Senate
TO vote cloture into effect. II this shoulc
prove to be the case the debate will bt
illimitable.
Senator Penrose directed the attention
!
was not alone the diminution OF direc
revenues from whiskey and kindred
drinkables amounting to nearly $640,
600. 900 which the country would hav'
to supply. He pointed out that the col
lateral revenues in the way of excess
profits taxes, income taxes and othe
! taxes collectible against individuals anC
corporations which must go out of bust
ness would cease and that the actua
cost which yesterdays action by tn,
Senate Is apt to saddle upon the natioI
might run we'll up toward the billioI
dollar mark.
While the Senate voted to make pro
hibition OF the use of foods. food product
and feeds in the manufacture OF distile
liquors operative thirty days after tn
approval OF the food administration bill
the clause directing the President to pur
chase and redistilr the liquor in bon
is made Immediately effective on tn
passage OF the act. This was not n
oversight. as many suggested, but en-
tirely Intentional
DimcuIties Are Explained.
THE people of this country" said Sen
ator Simmons, ''have little idea of tn
had in drafting the war revenue bill 3
that the taxes for running the war thi
year would not fall heavily upon tn
householder. We taxed corporation eS
cess profits TO the limit. We depende
upon whiskey for well over $4,000, ,00I
} Now that is chopped out. With tn