Evening star., 1933-12-11
CONGRESS WARNED
BOOTLECCERS HOLD
5D,ODO,ODO GALLONS
Huge Supply Will Compete
With Legal Liquor, Joint
Hearing Is Told.
ROOSEVELT SUMMONS
ADVISERS TO PARLEY
Treasury Delays Submission of It's
Program on Taxes Until
Tomorrow. sB8
By The Associated Press.

consideration that at least forty or fifty
million gallons of illegal liquor are on
hand.
While Parker testified before joint
meeting of the Senate Finance and
House Ways and Means Committees on
a proposed new liquor tax, President
Roosevelt called a group of his fiscal
and liquor tax advisors to the White
House.
There were indications that the Chief
Executive might suggest lowering Of
the $3.50 a gallon tax suggested by his
special committee. The present tax is
S110, and objections to the sharp in
crease also have reverberated on Capt.
tol Hill.
Predicts Competition.
The illegal liquor will seek market
in competition with lawful beverages,
Parker reminded the legislators at the
hearing.
The congressional expert was called
to the stand after notice had been
served that the Treasury would not be
ready until tomorrow with the admins
tration's recommendation for a liquor
tax.
Failure of the administration to offer
its recommendation today brought a
furry of criticism from Representative
Treadway of Massachusetts, and other
Republicans.
, Parker estimated the consumption of
distilled spirits for the coming year
would be about 140,000000 gallons, or
about the same as in the pre-war years
OF 1913 to 1916, unless the present $1.10-
a-gallon levy was retained, which he
said probably would result in a con-
sumption of about 200, 100000 gallons.
King Injects Point.
Senator King, Democrat of Utah,
brought up the question of illegal liquor,
asking Parker If it were true that mil
lions of gallons of smuggled whisky
were in this country under the control
of few organizations.
Parker replied the committee had no
way to investigate that, but estimated
at least 40 or so million gallons were
On hand
Il cannot see any escape from assum-
ing some such figure" the tax expert
said. Otherwise the sales could not go
on. 1t takes that much to carry on
business.
That is very important in arriving
at determination of what tax to fix.
That 40 or SO million gallons will seek
to find a market That liquor will be
sold at low price before it is thrown
down the gutter"
Parker predicted a greater volume
of imported liquor, even with the pres
ent SIS duty, but said it would be even
larger with lower tariff.
Whereas we have been importing in
the past from three and one-haf to
four million gallons, expect 25,000,000
to be imported the first year" he said.
Expects Canada to Act.
He predicted Canada would furnish
the principal supply for blending, es-
timating that country has on hand
from 100000 to 25,000000 gallons OF
american type whisky"
What is the American type?" Rep
resentative McClintic Democrat, Of
Oklahoma, asked rs it wilder?"
"A little heavier" the tax expert re-
piled. 1T is no different in alcoholic
content"
Parker testified pre-war revenue from
liquor at the rate of Sl.l0 totaled lit
tie more than S150,000,000, but this in
creased to a peak of $343, 100000 under
the higher tax levels during the war.
Questioned by Representative Knutson.
Republican, of Minnesota, Parker estl-
mated the total legal supply OF dis
titled spirits now on hand IN the coun-
try is about 100000 gallons:
Knutson suggested that would neces-
state large importations for several
years. but the tax expert said that was
not necessarily so because good liquor
can be made in a short period"
He added that new liquor does not
have the flavor of aged but is equally
"helr,fIIl" and can be favored by pleno-
ing with the older. o,;.,,
"How does that compare in quality
with good bootleg liquor?" Knutson
asked. .,,
Parker replied.
Invited to Conference.
.1oseph H. Choate, alcohol admins
traitor. and Edward G. Lowry, special
assistant to the Secretary OF the Treas
urv. were invited to the liquor revenue
conference at the White House between
the President, the budget director,
lewis Douglas, and acting Secretary
Morgenthau.
At the Capitol hearing, after express
sing the view that the liquor tax pe
betyeen So and 50 a gallon, Parker
added "the main thing is to get the
most revenue and not make the tax Sc
unreasonable that bootleggers Will OF
able to compete" =. .,,
There was some discussion OF the
1,tardenartmental Committees rec
ommendation for splitting the tax WIZ
states upon agreement with them no'
tn lew additional taxes. At the con.
clusion Senator King. Democrat, o.
Utah. remarked that "obJectlons u
the plan are almost insuperaoie uniess
there is a conference with all the
states at which an allocatlon OF Tie
taxes is determined upon"
After hearing Parker two nours, Ine
committee recessed until tomorrow te
await the administrations recommen-
dation on the liquor levy. The near
ings will last four days. =,
Representative Cullen, Democrat, o.
New York in a talk with the President
today suggested that the existing Si.II
tax be continued for trial period OF
about six months.
He thought any future levy should
be kept below the So level.
Acting Secretary Morgenthau is TO DC
questioned about the proposed hquoi
taxes Friday. when he testifles on tne
projected general revision OF the IN
come tax and other revenue laws.
The administrations liquor tax PRIV
gram includes, besides the SOU levy
sharing of the revenue with the States
Continued en- Page 2, Column a.