Evening star., 1933-11-24
SUBSTITUTE CODE
GIVEN D|ST|LLERS
Only 100000 Gallons of
Matured Whisky Held
Available.
BY the Associated Press.

BY the Associated Press.
The administration-ap substi-
tute code for the distilling industry was
submitted by the Government today to
organized distillers. with testimony that
when repeal becomes effective on De-
cember S, only Is, ,0o0, 900 gallons of ma
tured whisky and spirits would be i'm
mediately available to slake Americas
thirst.
In move to substantiate its pro-
posals tor Federal regulation of pro-
duction and prices of liquor under the
code, the Government presented testi-
mony at hotel hearing that the po-
tential liquor consumption in the first
year would amount to 105,0O0,O00 gal
Ions, at Federal tax rate of sl.1O a
gallon and a S5-a-gallon import duty,
while the total plant capacity built and
building, aggregates $4,000, 900 gallons
annually.
Industrial Alcohol Included.
This potential capacity includes in
dustrial alcohol.
The hearing was conducted by Wright
Clark Of the legal division of the Agri-
cultural Adjustment Administration,
with more than 200 members of the
National Distillers' Products, Inc, in at
tendance
Z. S. Greenbaum, representing the
Interdepartmental Alcohol Committee
set up by President Roosevelt, explained
that the Governments substitute code
was presented after careful study con-
Quoted in an effort to take care of the
liquor situation until Congress mad
sufficient time to enact permanent con-
troll legislation.
The substitute, he said. was not final
as to the method of production and
price control, but expressed the policy
of the Presidents committee. He also
disclosed that in addition to the distil-
lers', brewers and importers codes
already drawn by the committee, that
1t also would present code for recti-
flers or blenders of liquor.
z. G. Lowry, Jr., representing both
the Treasury Department and the
Presidents committee, explained that
the dist1llers code was decided upon as
an emergency measure, providing for
Government control under a board to
be created within the Government. to
curb dangers OF confusion which might
perpetuate an existing large and well
organized Illicit traffic In LIQUOR and
which also might react against the
legitimate liquor producing industry.
Decide on Price Control.
The Presidents committee, Lowry
said. had definitely decided to control
prices for the protection of the con-
suming public and the industry, as
well as control the volume of pro-
DR.. James M. Doran, commissioner
of industrial alcohol or the Treasury,
testified for the Government that i'm
mediately after repeal many individuals
would seek to prof1teer because of the
keen demand, adding that "it is only
logical to assume that many will seek
excessive profits"
Harry L Lourie, economic expert of
the Federal Tariff Commission, who
began an investigation last February
of the liquor production capacity in
the United States, testified there was a
plant capacity of 115.oO0,000 gallons
other grains, that 3o,ooo,ooo to 4o,ooo,-
GOO gallons Of Of, capacity liver were ,ln under
capacity of 435,000,000 gallons for
portable spirits other than grain.
A. S. Mcleod, actuary of the Treasury
Department, in answer to questions by
Lowry, estimated consumption of liquors
IN the first full year after repeal would
reach a maximum of 105,000,000 gal
Ions under a Federal tax of S1.10 with
import duties of SIS a gallon, as at
present.
Tax Increased to S1.50.
If the tax has increased to S1.50 a
gallon, he said it was estimated con-
sumption would be 100000 gallons
annually; at So a gallon, $4,000, 900;
at So around &c 900 ,0O0.
Consideration was given, he said, to
the effects of changes in drinking
habits"
Recalled to the stand to give. his
n