The New York herald., 1921-06-24
CHANCE TO GET BEER
KILLED BY VOLSTEAD
House Dry Leader Drops Pet
Measure in Favor of Camp
bell-Willis Bill.
SPEEDY PASSAGE LIKELY
Treasury to Hold Medicinal
Regulations Until Both
Houses Can Act.
SPEEDY PASSAGE LIKELY
Special Despatch TO THE new YORK lirsALp
New York Herald Bureau.
30 sher gfnu .Iune %. {

New York Herald Bureau,
Washington, ID. C., June 23 -
Representative Volstead's pride OF au-
thorship of prohibition bills to-day was
forced to yield to his hatred of all
things intoxicating.
With the responsibility on his shoul-
ders for delaying anti-beer legislation
the veteran dry legislator finally allowed
the House Judiciary Committee to report
favorably the Campbell-wilhs anti-beer
bill as a substitute for his supplemental
prohibition bill, which was not approved
by the House Rules Committee. due to
opposition to the sections dealing with
the chemical and industrial alcohol in
dustries.
Had Mr. vostead refused TO accept
the substitute bill in place OF his own,
beer propably would have been sold as
medicine within a few days. Lending
prohibitionists OF the House gave assur-
ances to the Treasury Department the
new bill will be enacted promptly, and
it is understood received assurances in
return tnat the regulations allowing the
sale OF medicinal beer probably will be
held UP a weeE to give the Congressional
drys an opportunity to make good their
promises.
The Campbell Willis hill. which Mr..
volstead finally was forced to accept
eliminates all the sections Of the original
volstead supplemental prohibition bill
which were in controversy. 1t outlaws
beer as medicine, allows doctors to. issue
only 100 prescriptions for other liquors
every ninety days, extends the prohibit
ton laws to the Virgin Islands and
Hawaii, and gives the prohibition COM
missioner power to stop the manufacture
and importation OF all liquors until the
supply in the country is reduced TO an
amount just adequate to meet needs.
The new measure will be rushed
through the House probably Monday and
Senator Willis expects the Senate to
pass it promptly. Chairman Campbell
OF the House Rules Committee. who re-
fused to give to Mr.. volstead's bill a
privileged status. Is ready TO give legis-
lative preference to the new measure at
any time the Judiciary Committee asks.
A new section was added to the sub
stitute bill to carry out the Supreme
Court decision Of June I, which held
that intoxicating liquor, although IL
| legally made. can be taxed when it is
seized. Explaining THE, Mr.. volstcad
said
in the years past it has been deemed
necessary to maintain the strictest kind
of control over all kinds OF liquor to
prevent il from being made and sold
without the payment Of taxes. and there
is, If anything. a greater necessity for
such control at this time. There is no
practical way OF distinguishing between
| beverage and non-beverage liquor and
! there certainly can be no good reason
why the man who makes liquor in viola
| tion OF law should be dealt with moro
! leniently than the man who makes st
for lawful purposes. During the last
year the Government collected more
than s1Ss.00o.o 900 in revenue from liquor
and there Is every reason to believe
the present tax will be maintained, II it
! is not increased in the next revenue
law.
This section is important for another
reason. Section 30 Of Title II. Of the
national prohibition act provides for an
additional tax on the illegal manufacture
and traffic in liquor over that imposed
on liquor lawfully produced and sold
This tax was held TO be valid in a deci-
sion ct the Supreme Court but decisions
have been rendered by various district
courts that would indicate that there
is no effective remeey for its enforce
inent. A failure TO make suitable pro-
vision for the enforcement Of these
taxes and penalties may mean tn. loss
TO the Government of many millions OF
dollars. There will no doubt be mora
than $bo.000,000 OF such taxes assessed I
before the end OF the next fiscal year"