Evening star., 1926-03-15
ANDREWS ORDERS
TAX ON M0ONSH|NE
$6.4O a Gallon to Be Taken
From Boot|eggers Under
New Program.

The Government will Use its taxing
power against bootleccers by taxing
the manufacture of moonshine, $40
a gallon.
Already. it was revealed today by
Assistant Secretary of the Treasury
Andrews. deputy collectors of internal
revenue have been developing the new
plan in Texas and Penns< lvania, with
such success that the Treasury has
determined to install the system
throughout the country.
Prohibition conditions in Washing
ton. ii also was learned from Gen.
Andrews, will be discussed at a con-
ference today with Gerald +. Murphy.
deputy prohibition administrator here.
Gen. Andrews had planned TO see MIR.
Murphy Saturday, but other arrange.
ments prevented.
Authorized ny Law.
The new system of taxing bootleg
gers and others for the liquor they
have produced illegitimately will be
operated under authority of the Vol
stead act and the new revenue law
of 1926. Under the Volstead act. it
was explained although liquor has
been outlawed. when proof can be had
that it has been produced the Gov.
ernment may tax it. Under the new
revenue law it is provided that for
every gallon of whisky sold by an
operator without federal license
there may be collected a tax of Sc. 40
gallon.
The producers of medicinal whisky
who operate under supervision of the
Government and the protection of a
Federal license pay tax of only
Collection of these taxes will be
attempted by the Government
throughout the country as soon as
the organization for doing it can be
effected. Gen. Andrews said The
plan is 10 deputiZe qualified en-
ploye in the office of each of the -
prohibition administrators through.
out the country. In Texas and in
Pennsylvania. Gen. Andrews ampli-
fed considera BILE sum has been eX-
tracted from the bootleggers.
A still further penalty will be as
SessedG wherever possible. Gen. An
drews said. against the operators Of
illicit stills. The law provides, he
said. a $50 fine for this.
BY the opera ton of this new sys-
tenn. Gen Andrews hopes to make
the new Illicit liquor traffic help sup
port the Government, in somewhat
similar fashion to that by which the
old licensed liquor ira ffic contributed
to the Federal till.
With receipt of all taxes. fines and
PENALTIES which may be collected un-
der the law. Ben. Andrews estimated
generally that the new illicit liquor
traffic NAV. some day. be forced to
pay the entire cost Of the prohibition
unit. He did not expect it. however.
he said. to support the United States
Coast Guard. charged with preven-
tion of smuggling from the sea.
Prohibition administrat tors will be
expected to organize mobile squads
to deal more effectively with the
moonshine still. under Gen. Andrews
plan of driving harder against the
illicit still. For some time the vari-
Gus prohibition agents have operated
with some success against this source
of liquor. but Gen. Andrews expects
increased activity with more mobile
squads.
will Pay for Enforcement.
Commenting on the visit of Anti
Saloon League leaders to the White
House Saturday. when more prohibi
tion enforcement was asked of the
administration, Gen. Andrews 'esti
mated that he could produce more
prohibition enforcement WltnOut lIIlIfle
diate increase in appropriations by the
increa sed effectiveness anticipated II
his program already laid down. Espe-
cially. he pointed out. are results eX-
nected from the new alcohol squads
nnder John Foster. which have been
concentrating on stopping the divei
sion of good alcohol into the bootles
trade.
With Deputy Prohibition Admins.
traitor Murphy. the prohibition field
marshal expected at his conference
today to go over the entire program
for enforcement in the National Cap
;tal. No great shake-up or revolu-
tionized changes might be expected to
result from the conference. IT was pre-
d;cted. but the whole matter will be
gone into intensively and a plan FOR
IN, ure action mapped out.
The new drive on taxing bootieggers
nm their alcohol is entirely separate
from a movement which has been I'LL
der way for some time by the special
Intelligence unit Of the Internal Reve-
nue. Bureau in connection with in
come taxes. Under this campaign. dl-
rected by Elmore l.. Trey, chief OF
this unit. thousands of dollars have
been collected from rich hootleggers
who had failed to pay an income tax.