New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-18
Calder Amendment Fixing
Figure at $6.4O a Cal-
lon Is Adopted by Com
mittee; Now Pays $2.2O
Beer Levy Held Up,
But Wins Support
Favor Shown Measures Is
Surprise to Drys; Hot
Fight ON Floor Certain


WASHINGTON, Sept. 1.-THE Sem
ate Finance Committee. which virtually
completed the tax revision bill to-day,
voted to adopt an amendment by SEN
ator Calder imposing tax of $6.40 a
gallon on all distilled spirits Withdrawn
Tor any purpose other than manufac-
ture.
The exact language of the amend
ment has not(yet been determined, and
Will be framed by Senator Calder and
submitted to the Committee Monday, or
prior to the report of the bill to- the
Senate. The committee voted to adopt
the Calder plan, + to 3.
Senator Calder said the amendment
wonid be Incorporated in the bill prior
to reporting the bill to the Senate.
The present tax is 1920 a gallon.
Senator Calder estimated that his
amendment would increase the revenue
$eo,ooO,ocO to $S0,000,O00 year.
Beer Amendment Held Over
The committee did not vote on the
Calder amendment imposing tax of
- barrel on beer not over 2.75 per cent
aicohoi. Senator Calder presented this
amendment, but the committee request
ed him to go over it carefully and per-
feet it. Senator Calder probably will
offer this amendment on the floor of
the Senate with the backing OF ma
Jority OF the committee, provided he can
trame 1T SO as not to conflict with exist
ing law. He will consult Chairman
Volstead, of the House Judiciary Com
mittee, with reference to it.
The olIor hoor on,o,I.So4
to encounter fight from the drys on
the ground that by indirection it would
iegalize 2.75 per cent beer
My amendment with reference to
distilled spirits-does not affect alcohol"
said Senator Calder. "Alcohol paws
1920 a gallon and this is left un-
changed by my proposition. What I
am seeking to do is impose $64O tax
on all distilled spirits, such as whisky
and brandy, which when withdrawn
may be used for beverage purposes.
The Volstead law prohibits withdrawal
OF liquor for beverage purposes.
Last ear 94,000,o00 gallons of whisky
were Withdrawn, or about 100000 more
than the year before. Most of this
was Withdrawn for medicinal purposes
but, in fact, was finally used for bever-
age purposes. | shall perfect the
am0dment and it will go into the
bill. 1t ought to increase the revenue
S60,00O,O00 to $50, 100000 a year. The
present whisky tax is $220s AS to nv
amendment imposing a tax of So bar
bel on beer of 2.75 per cent alcohol or
less, | shall offer that on the floor af-
ter have perfected it,"
Action Was Unexpected
The action Of the Finance Committee
in Il L
to whisky was surprise. The fact
that the beer amendment had deyel
oped much support in the Finance Com
mittee also was unexpected. To-day's
developments point to a most interest
ing controversy over the taxes on
spirits and beer on the floor of the
Senate The Anti-Saloon League is
already out to defeat the Calder beer
amendment. So far, it has not indicated
q purpose to oppose the increased tax
on distilled spirits.
In addition, the committee decided on
a number of further notifications of
the bill, or additions to it. The
most interesting of these is a hotel
room tax, to be paid by the hotel. 1t
provides for a 10 per cent tax on the
amount in excess of SIS charged to ar
individual for . room in a hotel and
~ Sf>SOoo " pC 1OT TWO persons.
Senator Smpot was heard III favor of
the sales tax which he proposes but
the committee did not vote on it.
The committee considered the crea-
tion of a tax investigation committee to
investigate tax exemnt securities and
other problems and decided against it,
Interest On Refunds
A provision suggested by Chairman
Penrose was put into the bill intended
to give an incentive for quick action on
claims for refund by allowing one half
of l per cent a month interest on re-
funds granted under claims for refund.
This is the first time the government
ever paid interest on claims.
The committee agreed to the House
provision increasing the note authori-
zation from 7,000,000,000 to $780,
100000
The committee agreed to the pro-
vision to the House bill for the simpli-
fication of the Liberty bond tax exempt
requirements of existing law, thus Civ
ing a fiat exemption on all Liberty
bonds. 1t adopted an amendment to the
Continued on page fourJ