The Waterbury Democrat., 1933-07-26
Compulsory Alcohol
 Plan Is Dangerous
Class Legislation Sets Bad Precedent = Farm Relief
 Not Cuaranted By Alcohol Blends

consumption resulting from use of fuels with lower efficiency than gasoline, would share the loss side of the ledger with the farmers. Estimated losses of $40,OO0,0OO through displacement of gasoline by alcohol and of $8O,000,000 more through additional costs of blend- ing and of installing blending and other equipment, were seen. Still greater losses were predicted for the gasoline business through add ed costs of refining and the com petition of price-cutting gasoline bootleggers and tax evaders whose field of operation greatly would be expanded.
 The report said that the alcohol industry stood to gain, its increased income being estimated at $267,- 100000, through the production of 800,000,000 gallons of alcohol needed for five per cent blend. No attempt was made toestimate the cost of erecting new plants or expanding present plants to pro- vide the necessary 622,000,000 gal Ions additional capacity, nor the cost of converting plants now equipped to manufacture alcohol from the cheaper molasses. A size- able increase in revenue for trans portation agencies. such as the rail-
 roads, was predicted.
 | It was explained that the study
 carefully avoided the chemical and
 physical phases of the proposal
 but tried rather to "bring into the | picture each factor of importance
 relating to the principal industries
 involved, and as far as possible to | express the results to be expected in terms of dollars" The economic effects of the fuel blend-farm relief plan upon various groups were summarized as follows:
 CD Financial benefit to corn farmers would be questionable un- less @ substantial percentage of al- cohol is required. Most other farm CTS will actually suffer cash losses. e Motoring public would pay an appreciably and definitely high CT prices per gallon for motor fuel, totaling more than the farmers
 would gain through increased corn prices.
 (3) "Oil companies would suf- fer definite losses through increas- ed volume and increased costs of operation.
 (4) "Alcohol companies would benefit decidedly unless the new deaP leads the government to enter the alcohol business or to control price of alcohol at non- profit levels. (5) Railroad and other trans- :, portation agencies would gain through increased tonnage of corn; increased tonnage in alcohol would be offset by some decrease in ton- mage of gasoline.
 (6) "Government expenditures
 would be definitely increased "A. Enlarged inspection service.
 "B. Probable necessity of financing the building of new plants if sub stantial percentage of alcohol Is required. Revenue from taxa tion is disregarded as government has pow CT to impose this any way"
 The report held the considera- ton of the matters of economies I and inter-industry competition to be highly important, pointing out that this plan definitely and delib-
 erately would take away portion of the petroleum industry's market
 and turn 1t over to the alcohol in- dustry.
 Before we thus handicap one domestic industry for the benefit of
 another directly competing domes- | tic industry the report asserted,
 i've should. as a matter of public
 policy, consider the precedent thus set.
 If such a policy is adopted in
 any particular case, it opens the doors for q tremendous amount of
 class legislation. If a law is passed
 to require a part of the petroleum
 market to be given to the alcohol
 industry. 1t means that the lumber
 industry is justified in asking that
 1t be given definite share of the
 steel industry and that the cotton
 textile people could logically ask
 that women be required to buy a
 given proportion of stockings made
 from cotton instead of rayon. | ''It has been an American policy
 to have each domestic industry
 relation to the proposal to force l NOAhPeShAOo " Duy -
 given percentage of alcohol. 1t
 seems as if no one expects the al-
 cohol blend to stand on its own
 feet A clear-cut distinction
 should be recognized between leg
 islation designed to relieve Q large
 group of our people when the ex- pense of such relief falls on every
 body in the country, and relief I measures that fall heavily upon a
 competing industry.
 There can be little doubt that
 a new outlet must be found for
 surplus agricultural products, or
 production must be reduced. Con-
 gress gave President Roosevelt and
 Secretary Wallace power to re-
 duce production. thus making It
 possible to correct the situation by
 that means. It would be more de-
 sirable If new uses could be de de-
 veloped which would enable the farmer to keep his production at
 the present high level without pen-