The sun., 1919-04-19
BREWERS SHIP
2.75 BEER ON
ADVICE OF ROOT
Money Deposited in Bank
for Tax, Subject to De-
mand of Collector.
MAY BRING DECISION
Hoffman, and LOewers Com
panies Will Fight Effort
to Halt Them.

Acting on the advice of Elihu Root
ana William d. Guthrie as counsel for
the United States Brewers Association,
two New York brewers, the Jacob
HOFFMAN, and V. Loewers Gambrinus
companies, began yesterday shipping
beer containing 2% per cent. alcohol.
1t had been manufactured since De-
cember 1 last, when President Wilson
forbade the use of grains for brewing.
His proclamation was later modified
to permit the making OF non-intoxi-
eating beer, which the Internal Reve-
nue. Bureau classified as containing
less than one-half Of one per cent. of
alcohol.
On each barrel shipped yesterday was
label the form of which was sug-
gested by Messrs. Root and Guthrie
In an opinion sent to Christian Feigen-
span, president of the United States
Brewers Association. on April s. The
label read. with the blanks suitably
filled:
Notwithstanding beer containing
not to exceed "a per cent. Of alcohol
by weight.
The internal revenue tax imposed
by section COS Of the act of Congress
of February "a, 1919, OF Sc for every
barrel containing not more thar, thir-
ty-one gallons has been duly rendered
to the Collector of Internal Revenue
for the District of ...., and upon
his refusal to receive the tax and issue
the customary stamps the full amount
, of the tax was deposited to his credit
with the ........ bank, thus keeping
the tender good. If any attempt Is
| made to seize this beer telephone or
telegraph at once to undersigned.
"....... (Name of brewing COM
pany).
Telephone number ........."
What VIII Government Do.
Internal Revenue Commissioner Ro-
per was not in Washington last night
| Nobody there could predict what the
! Government might try to do to the
New York brewers who disagree with
| Mr., Roper as to the Jazz content OF
AZ per cent. beer, which, by the way
Is what the public has been getting vir-
tually ever since America entered the
war, II anything is started It will prob
ably be by the Internal Revenue Col
| lector in New York. AS a matter o,
fact the brewers are not violating an,
specific order. All that Commissioner
Roper did was to refuse to authoriz.
the sale of revenue stamps to brewers
desiring to make beer more than one
half of one per cent. of which is al
cohol. Other brewers throughout tn,
country will follow the example of tn,
Hoffman, and Loewers companies, ant
II any attempt at criminal prosecution
is made they will fight.
BY refusing TO sell stamps Mr. Rope,
inferent!ally held that "a per cent bee
was Intoxicating The brewers dispute,
this, and before giving final decision
Mr.. Roper has been awaiting an opinion
from Attorney General Palmer, wh!cl
has not yet been prepared. The Hoff
mann company is already the complain
ant in test civil case brought to re
strain the Government from interferini
with the production of 2& per cent
beer.
| Argument on dismissal motion b!
the Government was to have beel
heard by Judge Hand yesterday. but wa
postponed to April 23 so that Mr.. Roo
pany. The brewers contend that thei
near bear" is not within the applica
ton of either the food conservation Law
or the national prohibition amendmen
and therefore can be made and sold
now or at any time
Tried to Get stamps.
J The Hofrmann and Loewers companle
notified the Internal Revenue Collecto
, early this week that they would re
sumo distribution OF 2% per cent. beer
asked for tax stamps and rendered thei
money. AS he refused TO sell them tn
stamps they put money In the ban
payable to him on demand; and CAV
the bank notice that they were actin
, on the advice OF counsel. This was tn
procedure advised in the letter to MI
Feigenspan by Messrs. Root and Guth
rie, who said that in their opinion sue
a tender. kept good by the deposit
| would entitle the brewers 10 sell thel
2 non intoxicating beers. The letter con
, tinued:
"In the leading case Of Poindexter v
Greenhow, ia U. 8. 27o, 2s1, the Unite
States Supreme Court declared
"1t 10 we'll settled by many decision
. OF this court that. for the purpose OF a.
; fecting proceedings TO enforce the pay
. ment OF taxes, a lawful tender OF pay
. ment is equivalent TO actual paymen
a either being sufficient to deprive the co
r lecting officer Of all authority for furtht
4 | action and making every subsequeI
n step illegal and void
Then followed the form OF label give
l above.