Omaha daily bee., 1917-07-09
SENATE'S ACTION
ON LIQUOR BLOW
TO J. BARLEYC0RN

- " VI DL11u1I41 l. SS4VAs
The probable loss in federal revenues
is ploced at from 100000, 900 to $780,
100000. although this as we'll as the
cost of purchase would depend en-
tirely on how much liquor was with
drawn tax-paid before the comman-
deering.
The senate's action promises in
definite delay in enacting the war tax
bill, further delay on the food con-
lrol bill, and indefinite postponement
on adjournment Of congress. The
revised 81 l,670,000,000 war tax bill was
Withdrawn Immediately following the
final vote upon the liquor question
to seek new sources Of revenue in
case taxation on distilled liquors is
eliminated.
Enormous withdrawal of distilled
liquors from bonded warehouses be-
fore the senate provision could be-
come effective was generally pre-
dicted tonight. 1t was estimated that
manufacturers and dealers probably
could raise funds enough to withdraw
at least half of the existing supply
or enough to meet consumption de-
mands for a year or more.
Not Subject to Change.
One feature of the bill as it now
stands-the prohibition of the manu-
facture of distilled spirits-will not
be subject to change in conference
and therefore is certain to become
law.
A resort to cloture still is threat.
ened to hasten action on other dis.
puted sections of the control bill. Sen
ator Chamberlain tonight presented
and withdrew temporarily his cloture
after failing to obtain an agreement
by unanimous consent for a final vote
rfext week. Determined to dispose OF
the measure during the coming week
he announced that he would renew
the cloture motion on Monday unless
an agreement could be reached.
The "wets' were successful, how
ever, in conhning the senate's action
to distilled beverages without inter.
fering with beer and wines.
In withdrawing the revised war tax
bill from the senate and having it re-
committed to the finance committee
Chairman Simmons said the further
revision would depend upon the fnaI
action OF the congress as to eliminat.
ing distilling as source OF revenue
The committee may meet Monday tc
consider the situation tentatively
Privately it was stated that to make
UP any loss in revenue from distilled
beverages it was probable that the
taxes on beer and wines would be in
creased greatly and also possibly the
taxes on incomes and war exces:
profits.
The contest ragged about the so,
called administration compromise
of Senator Robinson, originally pro-
viding only for prohibiting manufac'
ture of distilled beverages during the
war.
The provision for government pur'
/ chase of distilled beverages in bond
offered by Senator Smoot, was addec
to tie Robinson substitute by vot,
of 65 to Il after many senators hac
vigorously denounced as confscatior
of distillers' property provision by
Senator Cummins of Iowa, which pro
posed to prohibit withdrawal of thu
warehouse stores. ...>
Senate Reverses Itself.
On Senator Cummins' amendmen
the senate reversed itself. After hav
ing been added yesterday to the Rob
inson substitute by a vote of As Il
b0. it was stricken out today, 43 to SO
With the addition of the Smoo
amendment, deletion of the Cummin:
provision and adoption of an amend
ment by Senator Jones exemptint
distilled beverages bought by the gov
ernment from taxation, the senate de
cided, 10 to "a, against adding provi
sions offered by Senator Pittman o
Nevada, which were originally draft
ed by Senator Gore of Oklahoma an,
approved by the senate agriculture
committee, authorizing the presiden
to suspend the manufacture of bee
and wine and to limit their alcohol
content.
The Nebraska representation wa
directly opposed in each vote, Sen
ator Norris supporting the Smoot ant
Pittman amendments and opposing
the Robinson amendment. while Sen
ator Hitchcock opposed the two for
mer and supported the latter amend
ment.