Evening star., 1933-11-26
KEYSTONE STATES
BORDERS CLOSED
TO ESCAPING RUM
New Tax on Pre- Repeal
Liquor Causes Head
long Rush.
BY WALTER ID. ROOS.
Special Dispatch TO The Star.

Special Dispatch to The Star
HARRISBURG, Pa. November 25-
The most gigantic blockade against
rum running in Pennsylvania history
was clamped down suddenly by the
State government this week.
All roads leading across the States
borders were patroIled by State police
men-not to prevent importations OF
liquor as in recent years of prohibit
ton, but to prevent any alcohol from
leaving the State.
The purpose Of the sudden embargo
was to halt a headlong rush by DIS
tillers to get their liquor out Of the
State to tax-free areas, because Penn
Sylvanla had imposed S2-a-gallon tax
on alcohol, whisky and wine manu-
factured or stored before repeal
The revenue bill was pushed through
the Legislature and signed late Wednes-
day. effective at once.
Starting Tuesday, when passage Of
the tax bill appeared certain. distil-
leries and commercial alcohol plants be-
gan shipment Of their product outside
Pennsylvania in wholesale quantities to
escape the tax. During Tuesday night
millions of gallons were reported to
have crossed into other States. Trucks
continued to rumble away from ware
houses on Wednesday.
State police, awaiting orders. went
into action within few moments after
the bill was signed. They guarded
every distillery to prevent additional
shipments until there could be an &C
counting. Along the States bounda-
ries they took command of every road
to turn back trucks filled with tax
fleeing alcohol.
The Pinchot administration had eSti-
mated originally that 12500.0O0 gal
Ions of potable alcohol would be in
storage, but now fears many million
gallons have escaped the tax, at a loss
to the State Of 50 a gallon in expected
revenue. If Withdrawals have reduced
the taxable gallonage to large extent,
the special legislative session may be
forced to revamp appropriations for
which the estimated S25 900, 900 tax had
been earmarked. These grants in
cluded $4,000 900 for financially dis
tressed school districts; S8,000.000 to
replace revenue lost through repeal Of
a tax on Understanding bank ac-
| counts. and 100000 900 for construc-
ton at State institutions.
The s2-a-gallon tax applies only to
liquor made before repeal. A tax of 81
| a gallon on liquors and wines made
after December 5 Is planned. The 81
tax and profits Of State liquor stores
are estimated to produce $4,000 900
additional revenue in the II months
following repeal
The permanent 81 liquor tax and the
control system setting up State stores
both are expected to be enacted be-
fore Thanksgiving day. Control will
center in a State Liquor Control Board
of three members. who will operate the
State stores for sale Of packaged liquor,
and license hotels and restaurants
which will sell only for consumption on
the premises after January l.
The 100000 estimated yield from
the after-repeal tax and liquor store
profits. it is planned. will be devoted
TO social uses. From this fund $40
100000 is expected to be set aside for
additional unemployment relief, and
100000 for the States first old-age
assistance plan.
Besides whisking their whisky to
other Jurisdictions, distillers protested
the 81 tax of stored repeal stocks by
closing almost a dozen diStilling and
commercial alcohol plants this week.
Some threatened to move their dis
tilleries to other States. The adminis-
tration ridiculed this threat as "a
grandstand play"