The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-09-15
NICKEL BEER
PATH BARRED
BY IMPORTER
Profit to Higher-UpS Held
Main Reason for Dime
Cost of Stein.
Cor inued From Page One

$3.50 and 81 a barrel, out Of which
ne must pay salaries, rent, heat,
light UHkeep Of trucks and depre-
citation Of properties.
The retailer sells this keg Of beer
at 10 cents a glass, with twelve
ounces N each glass, netting him
S33. out OF which he must pay for
ice. salaries. rent and other over
head.
The retailers margin is Sl3 a
barrel; the wholesalers, 50 so TO 81
a barrel. and in some instances IS to
IS: the brewers margin is between
$3.50 and s. a barrel and the i'm
porter nets 81 a barrel, with his
overhead wrapped up solely in en-
ployes, storage and refrigeration for
retailers in outlying towns IN the
vicinity of Indianapolis.
Charting the course OF one gal
lon Of beer from the brewery IN
another state to the consumer
stein. The Times finds the following
estimated profit margins, without
overhead deducted.
!. The brewer charges approx
mately 80 cents a gallon for one
brand Of beer in another state at
the vat. The brewers profit Is
estimated at 10 cents a gallon. This
means the beer costs approximately
30 cents a gallon, federal tax in
Guided.
Costs Pile Up
2. The importer charges the
wholesaler 50 cents a gallon, of
which cents IS state tax and 81
cents the importers cut for each
gallon.
3. Then the same gallon of beer
is sold by the wholesaler to the re-
taller at 64iz cents a gallon and the
retailer sells it in tWelve-Ounce
mugs. ten stems TO a gallon, for 81.
Beer that originally cost, includ-
ing federal tax. 30 cents at the
brewery, now costs the consumer 81
if he wishes to drink ten stems of
twelve-Ounce size.
Maligned since Indiana legalized
beer, the importer. if dropped from
the brew scheme. would slice 6l2
cents in cost from each gallon of
brew.
II is pointed out, however, that
the collection of taxes from foreign
beers. as well as the bookkeeping,
then would be either a question for
brewery agents to handle direct with
the state or the state establish a
clearing house for beer importations
and collection of taxes.
Paid Taxes of S30,341
According to figures issued by the
state auditor. the two importers in
Indianapolis. known as the Hoosier
brewery and the State brewery,
headed by John Burke and William
Clauer. paid taxes of s30.341S "a from
April to Sept l for 606.836 gal
Ions of beer consumed in Indian
apOlis and vicinity.
The importers. however. collected
$50. $50 revenue for themselves If
the present ratio of 81 a barrel
handling fee is used as a multiple
with the 1855 barrels consumed.
In other words the importers col
leCted, under a 81 barrel beer rate,
$4,000 more for themselves than
they did for the state of Indiana.
Cut the importer out of the state
beer picture and the retailer would
purchase beer at So cents a gallon
instead of 64ig cents a gallon,
thereby widening his margin of
profit o. cents. while the wholesal-
or would be buying direct from
foreign brewery at So.
Would Boost Profit
After paying the s1.55 state tax
on a barrel. he would have a bar
rel Of beer for which he paid A
cents a gallon to sell at So cents,
widening his net profit to IA cents
a gallon.
And it would mean that unless the
importers cut was passed on in
some way to the public by bigger
stems or cheaper ones, that where
old John Drinker formerly paid the
retailer a 36-cent a gallon profit.
he now would hand him a 42-cent
margin.
Next: How Indianapolis could
have scent beer today.