Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1919-03-19
REVENUE CHIEFS
FIND No LAW To
BAR 2P.C. BEER
All Brewers Need to Do
Is to Be Distillers
of Alcohol.
BEVERAGE BY-PRODuCT
UNDER LAW Of NOV. q

Washington, March 1S.-Answer to
the question of when beer is legally beer
and whether it may contain 2A per cent
alcohol without being officially consider
ed intoxicating, was sought, today, by
internal revenue bureau officials in
existing statutes, court decisions and
administrative regulations, but with no
definite conclusion.
Pending a decision by the legal divi-
sion Of the bureau. and an opinion by
Attorney General Palmer, Commissioner
Roper declined to say what he would
do in case any brewers carry out their
announced intention of resuming manu-
facture and sale of beer containing 2A
per cent alcohol under President Viii
sons recent order permitting the max
ing of '.near-beer".
Asks Palmer for Opinion.
Internal revenue bureau officials held
number of conferences. The bureaus
legal experts argued all precedents of
scts of congress and Of revenue bureau
practices point to the rule that, if beer
contains one-half Of one per cent or
more alcohol, it is intoxicating and is
taxable as real beer. Drinks of the
soft" and notwithstanding" and mon
alcoholic kinds, must contain less than
ore half of one per cent alcohol, they
said. 1t was argued that the presidents
order of last September 16 forbade the
use of grain or other food products in
making beer with one-hah per cent or
more of alcohol.
Commissioner Roper, however, decided
to fortify himself fully and arranged to
call on the department of justice for
an opinion.
Law Provides for Greater P. c.
of beer with more than
cne-half per cent alcohol is prohibited
after May l under the food conserva-
ton provision of the act of November
y, 1918. 1t was understood that New
York brewers, however, cid not agree
with this view
Various provisions of recent revenue
acts were cited by bureau officials in
support of the contention that one-half
per cert is the maximum for non-intoxi-
eating beverages. The revenue act Of
1917 provide a tax of $50 barrel on
beer and other fermented malt liquors
containing one-half per cent or more
of alcohol" 1t also laid special tar on
soft drinks, including "fermented liquors
less than one-half per cent of
alcohol
The revenue bill passed by the last
congress increases to Sc a barrel the
tax on beer containing one-half of one
per cent or more of alcohol
No "Brewing" After May 4.
1t also provides for administrative
regulations governing production of
non alcoholic wines containing less
than one-half of one per cent Of aico-
hol.". Soft drinks. In this act. are de-
scribed as those containing less thar
one-half Of one per cent Of alcohol"
Revenue bureau regulations promul-
gated February s provide that after May
l, producers Of near-beer will have to
qualify as industrial distillers." since
the business of brewing. it was said,
cannot be recognized under the act OF
November q, 1918, forb4dding use Of
grain. cereals. fruits or other food prod
lcts in the production of fermented malt
liquors after that date. Under this reg
llation, makers of near-beer would be
considered technically as producers Of
alcohol with the beverage as a by-prod-
lct.
The Anti-Saloon league leaders are de-
bending upon the specific mention of
'eer and wine in the wartime prohibition
lct to make it unnecessary to prove that
'eer is Intoxicating in order to prevent
is sale after July l. Wayne B. Wheeler,
General counsel for the league in
(Continued on Page Three)