The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-05-31
REtR LEGAL OR ILLEGAL
i SUBJECT TO THE TAX
Commissioners topper Issues Instrue'
lions to the Revenue Col.
lcctOre.

At.orney-General Palmer on May
- ,pdered an opinion holding 1t TO
he he lawful duty Of the internal
revenue bureau to collect a tax on
~. il beverages with an alcoholic con-
- in excess Of that permitted Dy
lev" Issuance Of revenue stamps 70
Ger beer taxes will be communist
r"' no attempt will be mace os .ne
,renue bureau to prohibit the manu-
t.~turc of beer pending decision OF
federal district court OF new
~,.9s. concerning what percentage OF
{, rho, rende.~ beer intoxicating
Ia viewer. I, Ia made plain that the
i-.,ance of this tax will not safeguard
the heer maker against prosecutions
should It be found that he has been
manufacturing liquor containing more
than the allowed alcoholic percent
Revenue offleials were directed oy
esan, n, issioner Roper to corporate
v.'fh the department Of justice IN re-
No ing all violations OF the ACT pro
fItsiting the manufacture OF into1icAt-
,ne. hevera res after May and It was
announced that revenue agents WIN
hesin at orce to report all manufac-
tn-o Of malt beverages a. BASIS on
whioh to begin prosecutions followink
decision Of the New YORK court;
~.,- opinion cs the attorney-sene
--rounced on May Is by Commissioner
re--r is as fellows:
liability for this tax does not de-
rod upon whether the rnanufacture
81 sale are legal or illegal. ine
..~-ufacturc Of beer containing
r.-rh as one-ha1f OF one per cent OF
hol NAV be unlawful under the
r., control act and the presidents
r-~~lamation. II. notwithstanding
III. prohibition brewer in fact
manufactures and sells such beer ne
!. liable for the tax imposed by sec
tior sos above.
The fact that he 10 subject TO pros
ceution under the food law does NOT
relieve him Of liability for the tax
Tho result OF the two laws is that ne
il lab for the tax and subject 10
prosecution.
II am. therefore. OF the opinion not
only that the tax may be coiiecseo
lawfully. but that 1t Is the duty OF
.he proper oficer to collect H.. ~ners
her has been manufactured AND
,,-.thdravn fu- sale In violation of the
fead control act and the regulations
Hereunder" - ~
IN his instructions 70 revenue ON
GERS. Commissioner Roper said;
The attorney general reaches
.tr,iIar conclusion with respect TO the
ae, OF November 81, 1918. when
--a-es IT unlawful after May Ii a!s.
"a use grain or other food proouets
f. the manufacture OF beer. wine or
osh.r Intoxicating malt or vinous iia-
nor for beverage purposes.
He is maintaining. in litigation
which now 10 pending. that. under the
%, OF November 81. 1919, the manu-
f-cturs 1T beer or wine is prohibited
.bsaiutey without regard to the
rY-,ount II alcohol contained or
whether they are intoxicating or non
t,74cxica.inS. Il this contention 10 up
Mid by the courts the production OF
N~er or wine for beverage purposes
hout regard to alcoholic content
WV nc unlawful.
IN the courts construe the act 20
80 prohibit onis the manufacture OF
t-er and wine. which actually are m
..,v eating. the manufacture OF such
averages then will he lawful or I'M
- tul. according TO whether they are
t-tnxicating or not