Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-03-18
BREWERS
ACT UPON
ADVICE OF
C 0 UN Sci
Forty two Concerns in New
York and New Jersey Dis
regard Ruling Of Internal
Revenue Department.

New York, March 1.-THE lager
beer brewers board of trade OF
New York, representing AZ brewing
concerns in New York and New
Jersey, announced today that on adj
vice of counsel its members would
resume at once the sale of beer con-
tanning 2A per cent alcoholic con-
tent. This was forbidden by rul-
ing Of the internal revenue depart
ment, which interpreted President
Wilson's proclamation effective De
cember /, last.
Upon representation by the
board to Elhu Root and William
D. Guthrie, counsel for the organi-
cation, that beer of the alcoholic
strength specified was not intoxi-
eating, the attorneys advised the or
ganization today that sale of PA per
cent product would not be contrary
to law.
Assuming that the government
may summarily attempt or threat
Ell to enforce" the revenue depart
ment's Interpretation, Messrs. Root
and Guthrie advised the brewers, in
this event, that suit in equity be
brought "to enjoin any wrongful in
preference with your business or
arrest of your employees"
The opinion held that that inter
nal revenue department had acted
without authority in decreeing that
sale of beer containing more than
one-half of | per cent of alcohol
was contrary to the presidents
proclamation forbidding the use of
foodstuffs in brewed products ex-
cept those which were nonintoxi-
eating.
Revenue Officials Mum.
Washington, March 17.-Officiafs
of the internal revenue bureau de-
clned to, comment officially to-
night on the announced decision ob
New York ad New Jersey brewers
to resume manufacture of beer con-
tanning 2A per cent alcohol pending
examination of the brewers state.
ment of legal authority for the ac-
ton.
Beer containing one-half of one
per cent, or more, of alcohol by vol
ume is considered Intoxicating by
the internal revenue bureau Off
cials, explained that this standard
was based on a number of laws and
court decisions in the past and was
not an arbitrary executive ruling.
On the fact of the situation it was
said officially by some bureau Off
GERS, the brewers action would con-
stitute direct violation of a recent
revenue bureau ruling. This ruling,
issued February f, after announce
ment of the lifting of the presidents
ban on manufac of near beer,
but before it had actually gone into
effect follows:
Ruling on Beer.
"If at any time the presidents
proclama ton of September 10, 1918,
becomes imperative as to near beer,
brewers may resume the manufac-
ture thereof prior to May l, 1919.
where the alcoholic contents during
the process of manufacture exceeds
one-half of one per cent by volume,
but does not exceed 2A per cent by
weight, on the brewery premises,
provided the alcoholic content at
the time of removal for sale and
consumption does not exceed the
limit of less than one-half of one per
cent of alcohol by volume
Within the intent of the act OF
November 21, 1918, prohibiting
manufacture of beer alters May ],
1919, and its sale after June so,
beverage containing one-half of one
per cent OF more of alcohol by
volume will be regarded as intoxi-
eating"
The provision requiring dealco-
holization of beer, it was pointed
out, was not positively stated in the
ruling, but was condition of the
permissive clause.
Edgar Rickard, acting food ad-
ministsator in the absence of Her
bert Hoover, said tonight that the
Food administration was no longer
interested in the question of brewin:
of beer from food standpoint and
that the alcoholic content of beet
was matter entirely up to the
bureau of internal revenue to deter
mine.
A letter. Mr. Richard said. has
been written Secretary Glass at the
secretary's, request, outlining the
Food adnjnistration's policy regard
ing foodstuffs used in manufacture
OF malt beverages.