The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-20
HUGE REVENUE
GAINS seen IF
DRY RULE ENDS
Richie Declares Billion
Dollars Would Flow to
u. S. Treasury.
ENFORCING COST HIGH
$485, 900, 900 Was Re-
ceived in Liquor Taxes
in 1919.
BY RUTH FTNNEY
Times stan Writer

WASHINGTON, May 2O.-Enrlcn-
ment o. the federal treasury by one
billion dollars. promised Thursday
night by Governor Albert c. Richie
If the eighteenth amendment should
be repealed. made a powerful appeal
today to harassed congressman, try
ing to increase federal revenues and
reduce federal expenses.
The Maryland Governor gave his
estimate in a nationally broadcast
radio speech.
The senate economy committee
has before il appropriation bills
containing items connected with
prohibition enforcement which
amount to s4s, 000,0 900, a sum greater
than the maximum savings con-
tanned in the house special economy
bill.
Senators calculating federal reve-
nues, in connection with the tax
bill, have found the government
now receiving s3,s33.57S year in
fines, taxes and penalties and seized
property under prohibition laws, as
compared with s483, 100000 received
from liquor taxes the year before
prohibition became effective, and
another s1,164,778 collected in Gus
toms duties on wines and liquors
sent from abroad.
10 Per Cent of Revenues
The S483 900 900 collected in liquor
taxes in 1919 represented 10 per
cent of the total federal revenues
that year. The 1919 budget was an
unusually large one, because Of war
expenses, and it included income
taxes imposed on the basis of war
rates.
A fairer estimate of the relative
Importance of liquor taxes is found
in figures for the year 1915. when
liquor taxes accounted for 80 per
cent of the total revenues.
However. Ritchie. together with
numerous members of congress and
the research department Of the As
ISOLATION Against the Prohibition
Amendment, believe the treasury
would benefit now. from repeal of
the eighteenth amendment. far
more than the sum of 1888 expen-
ditures for enforcement and 1919
revenue from liquor.
Counting on increased population,
but assuming that the per capita
consumption of all liquors would
remain what it was before prohibi-
ton, the Association Against the
Prohibition Amendment estimates
that federal revenues from alcoholic
beverages would amount to $685.
402,224 year.
Based on IL States
II bases this figure on sale of
liquor in only seventeen of the
forty-eight states-the fifteen that
provided for legal sale of liquors
at the time the eighteenth amend
ment became effective, and the two
which have, since that time, re-
pealed their state prohibition acts.
These are California, Connecticut,
Delaware, Illinois, Louisiana, Mary
1 land, Massachusetts,. Minnesota,
Missouri, New Jersey, New York,
FSullSyiNdnld, tIiOOe lSldlQ, YER
mont, Wisconsin, Montana and
Nevada. They contain 40 per cent
Of the country'S population.
The association bases its figure on
the $6 barrel tax imposed on beer
during the war.
If any of the proposals pending
before the two houses of congress to
legalize beer and tax it should be
adopted before adjournment, this
change alone would yield revenue
estimated all the way from $780,
100000 to S500000 900.
If, at the same time. drastic
economies. should be made in federal
expenditures on account of profi-
bition. the condition of the federal
budget could be improved by at least
half a billion dollars. without repeal
of the amendment, wet leaders es-
innate. The house will vote on this
measure Monday. and the senate
will vote again on it before adjourn
ment of congress.