Evening star., 1933-12-22
Committee Rejects Plan for
State AIIocations Due
to Difficulties.
PLAN WOULD PRODUCE
s300,0O0,OO0 REVENUE
Administrations Dou b e-Tariff
Proposal Will Be Considered
Later Today.
BY the Associated Press.

By the Associated Press.
The House Ways and Means Com
mittee today approved tentatively
liquor tax bill estimated to bring in
70,0o0ooo, including revenue from
beer.
BY vote of 13 ayes to Republicans
voting present the committee adopted
a levy of 81 gallon on distilled spirits,
estimated to bring in s300,OO0,00O in
revenue on an estimated consumption
of 15o,ooo,ooo gallons during the first
full post-repeal year.
The committee rejected the admin
istration's proposal for ALLEGATION of a
portion of the liquor revenue to the
States because of many difficulties,
Chairman Doughton announced
The committee will meet later in the
day TO act on the administrations dou-
ble-tariff proposal by which the admin
istration would be enabled to enter into
bargaining negotiations with foreign ex-
porting countries. Doughton said, how
! ever, every indication was the present
tariff Of SIS a gallon on spirits would
stand for the present. He intimated
the administration would submit legis-
| lation for reciprocal trade agreements
| not only including liquor but other i'm
portations.
s. Flat Rate on Beer.
The committee also made a fat S5-
a-barrel rate on beer. At present 80
beer bears the $5 rate, but all brew of
alcoholic content greater now is sub
ject to a S6-a-barrel tax.
Tax experts told Doughton beer was
producing revenue at the rate of $780,
100000 a year, and estimated wine
revenue through domestic excise taxes
would net S10,oo0,000.
The rates on wine agreed upon today
are as follows:
Wine of alcoholic content of IA per
cent or less by volume, 10 cents gal
lon; "A to 81 per cent, 20 cents; 81 to
"a per cent, 40 cents a gallon, while
all wines and brandies containing more
than "a per cent will bear the S2-a-
! gallon levy the same as hard liquor.
| Sparkling wines, including cham
payne and Burgundies, 80 cents a gal
! Ion, with artificial sparkling wines
charged with sparkling waters, 40
cents gallon.
No Objection From President.
Questioned whether the President ap-
proved the striking out of the Inter
departmental Committees recommended
tions for State ALLEGATION of liquor
revenues, Doughton said: THE Presl-
dent has interposed no objection"
The chairman explained there were
80 many difficulties" encountered by
the committee in seeking to reach a
basis of ALLEGATION that it was decided
| to strike it out" He said the wet
States didn't want the dry States to
share in the Federal revenue, and to
avoid any delay in getting early passage
| of the bill so that the Treasury could
receive early benefits from the higher
rates we decided to drop it."
Compromise Reached.
As the committee passed over the
doubled tariff problem for later study.
| the United States and France reached
a compromise in their difficulties over
wine shipments to this country and a
move developed on Capitol Hill to con-
troll liquor prices and purity.
France now will be allowed to ship
| 784,000 more gallons of wine to the
United States in return for agreeing to
market 10000 tons of American apples
and pears, regardless of increased
tariffs. The United States had feared
that French tariff increases would pre-
vent importation of the American pro-
duce into that country.
The compromise with France was
viewed as dictated by desire of this
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