Evening star., 1932-12-09
COLLIER SEES GAIN
FOR BEER MEASURE
Witnesses Tell Committee
Plan Would Give New Life
to Many Industries.
(Continued From First Page.)

CONTINUED From First Page.)
none will be until opposition to the
legislation Is recorded, probably early
next week.
Tomorrow Secretary of the Treasury
Mills Is TO testify, but whether as a
spokesman for the administration has
not been announced.
A furry of dispute IN the committee
was caused today by the prediction of
George P. McCabe of the Associated
Producers of Cereal Beverages that
legalization of beer would have a psy-
Geological effect beneficial to- business.
Representative Treadway, Republican,
OF Massachusetts,, wanted to know will
the man in the street.-the mill work
er. for instance-have any money to
spend for beer? 1t looks to me that
there will be no increase in the amount
of money spent"
Representative Mccormack, Democrat,
of Massachusetts, interrupted to say
that by "legalizing beer you will divert
money spent for illegal liquor for legal,
taxable beer"
Wants ais Minimum.
At the outset of the third days hear
ing McCabe recommended beer of not
less. than 2.75 per cent and S5-a-
barrel tax He said his association rep
resents breweries with an invested capt.
tai of $50 900 900 and a capacity of
1i,500oo0 barrels.
Attendance at the hearings had
dwindled and only few spectators were
present.
"The brewers recommend that the
law be so amended as to discourage
the Illicit manufacturer and the boot
logger, and to guarantee pure, health
full, Notwithstanding beer which can be
sold through the ordinary channels of
distribution now in use for near beer"
McCabe said, "and without those re-
strictions which must surround the sale
OF intoxicating liquor.
We ask for an amendment of the
Volstead act which will require the
manufacture, under permit from the
Bureau of Industrial Alcohol. Of beer,
ale and porter of the alcoholic strength
determined upon by Congrshs."
Silent on Wine Section.
He declined to discuss she wine sec
tion in the bill, but suggested "a saw
ing clause" be inserted 10 that in the
event the wine provision is held un-
constitutional the beer provision may
remain on the statute books.
McCabe said 2.75 per cent beer would
be "a soft drink" and should be per-
mitted to be sold at places where soft
drinks are sold
40 ,000, ,000-barrel consumption. the pro-
posed $5-a-barrel tax would produce
$500, 100000 a year
Our position in regard to the tax
on beer is that the lower the rate, with
in reasonable limits, the larger the reve-
nue. which will be secured from in
creased sales" he said.
McCabe said that If permission were
granted for sale at places where soft
drinks are sold, it would be a guaran-
tee against the return of the saloon.
He said in answer to a question by
Treadway as to what tax could be
placed, II beer is to sell for cents
a glass" that the retailer at 5 cents
a glass gets about $25 barrel for his
beer.
You can figure 1t out from there"
the witness added.
Sees Aid to Industry.
He agreed with Representative Estep,
Republican, of Pennsylvania, that it
would be better to fix the maximum
content at 80 instead Of the 275."
Next, Joseph Dilworth of Pittsburgh
testified for 'the Committee on In
dustrial Rehabilitation" which he de-
scribed as an off-shoot of the set-up
growing out Of White House conferences
last year.
This would help industries that have
suffered more than any other indus
Reports from New York, Pittsburgh,
Milwaukee and st. Louis, he said, were
that brewers there were ready to spend
from s40,000,000 to $4,000. 900 at once,
If beer was legalized."
You can imagine what that means
over the country as whole if proper
tionate sums are spent in other
sections"
Far West Prepared.
Representative Horr, Republican, of
Washington, testified that before his
State went dry in 1915, $4,000 900 was
invested in breweries, / 500 men were
employed. and the products sold for
$4,026,000. In the recent election, he
said, "the bone dry law" In his State
was repealed
Our people are prepared for the
sale of beer" he said
An estimate that 10000, 900 barrels
would be required if 10000, 900 barrels
OF beer were produced in the first year
beer was legalized was made by Edward
Verdi. Hoboken, N. j., representing the
Associated Cooperage Industries of
America.
He estimated it would keep 1880
men employed for nine months yearly.
The timber, he said, would come largely
from Arkansas, Mississippi, Louisiana,
tennessee, Kentucky and Missouri
cddjtinY
roads would secure "a, 400 cars of "long
haul freight" for the year from this
timber. He said there would be 5,400
carloads of freight steel required for
hoops. On this basis, he estimated
1925 men would be given employment
Tor a year in making the steel.
Truck Men Expect Boom.
D. c. Fenner of New York. on behalf
OF the Mack-International Motor Truck
Corporation, estimated that about 5000
motor trucks will be required to COL
lect materials for and distribute the
products of American breweries In the
first year Of the resumption of ac-
tivities"
This potential market will revive
production which is now less than 20
per cent of normal. It will return to
employment thousands of skilled work
men whose purchases will materially
assist trade in centers fatruck manu-
facture, maintenance, operation and
servicing."
Fenner said return of beer will re-
turn to the Federal Government excise
taxes upon these new vehicles, their
parts, tires and equipment, and also
upon the fuel they may consume"
adding that 10000 men not now en-
ployed Immediately would be put back
to work in truck plants and that