Evening journal., 1917-06-07
NO prohibition
IN HIGHER Taxes
Prominent Distiller Says
Senate Proposal Will
Merely Increase Prices
MAY BE rs CENT
DRINKS HEREAFTER

NEW YORK June Neither pro-
hibition nor any substantial reduction
in the consumption OF alcoholic
liquors will result If the provisios OF
the war revenue bill approved on Mon
day by the Senate finance committee
are enacted into law. according 10 a
statement made by the president OF
one Of the largest distilling companies
in this country.
The Senate committee has ap-
proved taxes upon grains, cereals
and other foodstuffs used in the
manufacture Of whiskey or other dis
titled spirits for use as beverages
which are described as "prOhibitive"
by Senator Simmons, chairman of the
committee The proposed taxes are in
addition to the present tax or 1920 a
gallon on whiskey and are TO be
levied upon the grains and other
foodstuffs which form the raw ma
terials OF the distilling industry at
the rate OF $40 a bushel.
About four gallons of whiskey are
distilled from each bushel Of grain,
according TO figures presented by
prominent distillers here, and the
proposed tax will therefore result in
an additional levy of So a gallon on
an grades Of distilled liquors. Ac-
cordng TO the same authority each
gallon Of whiskoy supplies the raw
material for from siXty-hve TO seventy
drinks which under the present tariffs
I'm force i'm the thirst quenching par
lors Of this city, are dispensed at the
nearly uniform price OF "lj cents
straight"
Gross Profit for Retailer.
Whskey Of the grades ordinarily
sold COSTS the saloon keeper under
the present excise laws about three
cents q drink and IS retailed at 10
cents, the operation yielding a gross
profit of ~ cents. or about IS
gallon.
The effect Of the proposed increase
in the excise will be simply to in
crease the price OF drinks from the
present rate TO 25 cents or even more.
This in the natural order Of things
would result I'm a decided decrease IN
the demand. but in the opinion Of at
least one prominent member OF the
distilling trade such an effect will
not be visible. at least for some time.
In the first place. he says, there
is on hand in this country in tho
bonded warehouses a stock of about
/ $50 600 600 gallons. This stock under
normal conditions Is depleted at the
rate Of about $50 600 600 gallons per
year and under the proposed scheme
| of taxation it will only be subject
10 the present exercises tax OF $40
/ per gallon. as the taxes approved by
/ the Senate Committee are 20 be levied
only on tho raw materials used in
whiskey still 10 be manufactured.
This stock on hand OF course viii
increase enormously in value. but
it's mere existence will operate for
] sdne time to prevent a sudden in.
crease I'm the cost Of liquor TO the
I retailer.
Predicts Era OF Initiation.
Should the war last more than q
year. or at most q year and half
there will undoubtedly be. in the
opinion Of the distiller above quoted
a stiff rise in retail liquor prices, but
the effect OF such an advance ir cur
failing consumption in his opinion,
will be largely offset by an era oil
imitation which. he believes. will in
ovitably occur here as 60 has in the
other nations heretofore neutral,