The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-06-05
PRQlIBHllE TAXES
PLACED on SPIRITS
Senate Finance Committee
Approves Prohibition
Legislation.
IMPORTS ARE BARRED
General Suspension Of Dis
tillation Will Be Effect
of Law.

Washington, June 4. 49, Prohibition
legislation was approved today by the
senate finance committee as new
feature Of the war tax bill.
Prohibitive taxes upon distillation Of
whiskey and other spirits for beverage
purposes, with a ban upon their inn
portation, were agreed upon by sub
stantial majority Of the committee.
Taxes fixed by the house on beer ana
wines were left unchanged, though
they have not yet been finally APP
proved.
General suspension of beverage pro-
duction by tlistilleries and use of liquor
now in bonded warehouses probably
would be the effect of the new tax sec
ton. II enacted into a law.
Consumption CurtaiIed.
Curtailment of liquor consumption
during the war and conservation or
food stuffs used in manufacturing dis
titled spirits. Chairman Simons said to-
night, constituted the dual object of
the committee In adopting the substi-
tutes for the house rates. Manufacture
of alcohol for Industrial mechanical or
medicinal purposes would not be at
fected.
In addition to the present tax of
SEQ per gallon on liquor, tax of $2O
per bushel Cfrom IS to 50 a. gallon) up
on all grain, cereal or other foodstuffs
used in the manufacture of whiskey or
other distilling spirits for use as bev-
erages was written into the bill. Sen
ntor Simmons said the increase would
be prohibitive upon manufacture while
the law is in effect, or during the war.
Increased taxes of s. per gallon upon
molasses, syrups and substitutes used
in distllatiOn for beverage purposes
also were agreed upon. Permits for ex-
portation would be given only for war
purposes upon application during the
war with Germany.
Importation Prohibited.
AS supplementary legislation, the
committee further approved an amend
ment prohibiting importation into this
country. Porto Rico and the Philippines
of distilled spirits made from any food
stuffs. except for industrial, mechani-
cal or scientific purposes. Senator Gore
was the author of the liquor amend
ments. Belief in the committee tina,
little or no revenue loss will result il
other distilled spirits already manu-.
featured may be withdrawn upon the
payment of $2.2O per gallon, for gen.
eral consumption. Senators estimated
that actual consumption would de-
crease but little from liquors now II
bond, and that about the usual revenue
would be furnished.
Dstillation to Cease.
The prohibitive taxes, Levi Cook
counsel for the national distilling in
terests, said tonight, will result in vir
tually complete cessation of distillatioi
for beverage purposes.
Senator Gore estimates that supple
of distilled spirits now in bond, &C
cording to the present rates of con
sumption, would last for between tw
and three years, thus, removing tn
prospect of serious curtailment of fed
eral revenues for that period.
In addition to determining the liquo
questions today, the committee vote
tentatively against increasing secon
class postage rates on newspaper!
magazines and other publications. .
flat two per cent tax on advertiser
receipts was, instead agreed upor
Senator LaF'ollette later presented a
amendment exempting certain classe
of publications from this advertiser
tax. Publishers receiving less tina
$1,000 annually from advertising hay
been suggested for exemption.