Saturday news. (Watertown, S.D.) 19??-19??, 1919-05-22
WffS6E1luIlQlUl0R
TAX Loss BY
new INDUSTRY
Advocate Plan % Expand The Use.
Of Industrial Alcohol to REM
burse Govt for Cancellation 81
Liquor Revenues.

New York, May Recommendations
Of Internal Revenue Daniel s. Roper,
through his deputy. b. {. Keith, has
made public d plan whereby the de-:
velopnaent of the use OF industrial
alcohol may be- combil ed, he hopes.
with revenue collection, In such man
as&to offset to a large extent the.
$500. 100000 loss in revenue, which al.
appears inevitable because of wartime
prohibition. 1t was explained the.t,
since the treasury department looks
to the revenue bur eau for the collec-
ton Of taxes and at the sanne time
for the national enforcement of pros
hibitionG 1T issthe heliefNof Mr.. Roper.
that enforcement On the one hand,
sfd enct Engagement of legitimate nom
beverage production and industrial
uses, on the other, can be united to
the profit Of the country and create
a SQUIRE of taxes.
MIR. Keith has bqen in conference
with some Of the largest users OF
ethyl alcohol, sach as soap manu-
facturers, perfumes, ana drug and
chemical houses.
Extent of Industry Shown
Mr.. Keith gave .he following data
on tie alcohol md whisky Industry
which shows lis extent and part of
which must be replaced, Ii is not
transformed, to oet cine revs pro,
ducing:
Alcohol Plants
Approximate number IF al.
cohol plants in the. Unit
States, {1918) ............... 60
Total daily capacity. ap-
proximilsely, Wine gal
lons) =. ........................... 700, 600
Investment, ESTIMATED ....s$Sss. ooo, 900
Beverage Plants
Whisky and Brandy.l
Approximate number Of
beverage alcohol plants
in the U. s., 1917..-- d43
DO. l9is -..... IT,
Daily capacity ESTIMATED.
1879, proof gallons ....4... 10000
Could notgE be converted to alcohol
plants without substantial increase
in investments for new equipment.
N.urn,7er of plants, l917.... 1,217
Do. 1918 Observation-Disclosures. 1902
daily capacity, 1917 tbar
rels) ~. y.--"*--.... 60,Sl7s37s
Do, 1913 ...s......... 50,2s7,12
Investment =. .-.-....-.....U Undetermined
The total amount OF alcohol de,
natured. for 1918 was 55,67s,597 wine
gallons.
THE commissioner" said Mr.. Keith.
.does not share the fears that some
have expressed regarding the detri
mental effect prohibition may have
on the country's finances. 1t is true
that more than $1,oeo, 600. 900 invest
nent is represented in the beer, wine
and @hisky business, and that dur
ing the year 1917-191S $450,000 900 II
revenue was obtained. During thu
fiscal veal closing June 80, 1919, it Ii
expected that the revenue will ex
coed Ssco,0oOsOOo. After July /, thi.
p:srticular source OF 81 will b,
lost.
Use Of Alcohol Planned
st is a serious problem to replac,
this amount OF money. investigation
however. convinced the commissions
it should be possible to encourage tn
industrial use of grain alcohol. rev
people realize that grain alcohol-a
distinct from wood aicohol-is used i
81 multitude OF industries; it is USE
in the manufacture OF paints an
bronzes, chemicals, pharmaceutical
perfumes, soaps, essential oils, sue
as oil of lemon, and all flavoring e.
tracts; it is necessary in the produc
ton OF silk, fine hats. artificia
leather. dyes, explosives. rubber, Al
solvents, and it enters extensively II
to the many processes necessary t
the automobile and automobile aces
sorry business. Finally. there is II
function as a fuel.
ut is safe TO say hat the bus
nesses thus involved represent an ii
yestn1ent more than double that {
the liquor industry. The consuml
tion OF grain alcohol for inaustris