Evening star., 1932-12-18

House Ways ana Means Committee re-
porting the Collier bill for 80 per cent
beer follows:
That there has been a considerable
change of sentiment on the part of a
majority Of the people of this country
with reference to the question of pro-
hibition since the, adoption Ut the
! eighteenth amendment can hardly be
controverted. Recognition was given to
this sentiment in the platforms of the
| two great political parties in the last
election. W1ether the eighteenth amend
ment is to be eepealed or changed is yet
| to be determined and will, of course, re-
quire the favorable action of tWo-thirds
of the membership of both Houses OF
Congress and of the Legislatures or con-
ventions of three-fourths of the States
Pending the determination of this
| question, the Congress has the power
to make such changes in the national
prohibition act as it may see fit, keep
ing in mind the letter and spirit of the
amendment. In other words, it may
permit the manufacture and sale of any
alcoholic liquor which may reasonably
be said to be Intoxicating in fact
Aside from responding to the popu-
lar demand for modification CT the ma
tiCnal prohibition act within constitu-
tional limits, your committee recognizes
in the legaliZatiou of the manufacture
of palatabie notwithstanding beer a
source OF revenue which in the years
prior to 1920 was very fruitful one
The Congress has been advised by the
President of the state of the Federal
revenues. In spite of the imposition
OF many new taxes at the last session
OF Congress and the increase of exist
ing levleS, 1t has been found that the
budget is still far short of being bal
anced, not only for the fiscal year
1888, but for 1884 as well. The Con-
gress IS faced with the task of either
hndlng new sources of taxation or in
creasing existing levies, and your com
mlttee feels that the tax ON non
source, will be large factor in making
up the necessary revenue.
S. a Barrel Tax.
The bill provides for a manufacture
ers' excise tax of SIS a barrel on all
beer. lager beer, ale, porter, or other
similar fermented liquor, containing
0ne-half OF l per cent or more of al
cohol by volume, and not more than
80 per cent of alcohol by weight
which is equivalent to per cent by
volume. The Treasury Department
estimated that a tax of S. would pro-
duce a revenue of from Sl25.OO0 900
to $150,000,000 in the fiscal year end
ing June 80, 1884. These figures were
based on a probable consumption of
from 25,000,000 to 100000 barrels of
2.75 per cent beer in the States in
which its sale would be legal upon the
enactment of this bill or in which its
sale may reasonably be expected to be
made legal in the near future. These
States have a total population of 49,
52l 900. The beer provided for in the
bill is OF slightly higher alcoholic
content. and being more palatable.
would be consumed more generally
than 2.75 beer. Estimates made by the
brewing interests placed the probable
consumption at 100000 barrels with
IN the next two years. On this basis
the revenue would be in the neiehbor-
hood of S200,000,000 annually
1t must be remembered that where
as IN 1914 there were 1892 breweries
in this country producing over 66,OOO,-
600 barrels, there are today but 164
plants equipped to produce the beverage
taxed by this bill. Naturally, it will
take some time for the breweries to be
able to supply the probable demand
Per capita consumption of beer in the
United States in 1914 was 2OS2 gall
Ions, but at that time its sale was not
legal in all States. With respect to
the total population of the States where
beer was legally sold the per capita
consumption was Pap gallons If this
consumption were to obtain in States
where beer can now be sold. or where
its sale may be expected, there will be
demand for approximately 60.O00,OOO
barrels. At the rate of SIS barrel the
tax on this amount would produce
revenue of S300,00000O year.
There Is a definite relationship be-
tween tax rates and the consumption
OF beer, and consumption is naturally
affected by economic conditions also
Your committee feels that the rate of
SIS per barrel fixed by the bill is a rea-
sonable one and that it will be pro-
ductive of the greatest amount of
revenue. This view is shared by the
Treasury Department and by the brew
ing interests. 1t must be kept in mind
that the States and municipalities have,
in the past, levied beer taxes, and the
Federal rate should not be placed so
high as to make it impossible for them
to continue this policy without placing
an unreasonable burden upon the sale
of Notwithstanding beer
Barrel of Beer S6.26 at Cost.
Representatives of the brewery in
dustry informed the committee that
they could produce a barrel of beer
and deliver it at the point of con-
sumption for approximately 1925, ex-
elusive of Federal, State and local
taxes. The expense of bottling is said