Evening star., 1933-12-10
Levy of $500
|. Loophole for
|. Bootleggers.
PARTY LEADERS
In AGREEMENT
Distillers, Brewers
and Rectifiers
Under Codes.
BY the Associated Press.

BY the Associated Press.
Lower liquor taxes to hold down
the price of the legal beverage
were demanded on Capitol Hill
yesterday at about the same time
that the Federal Government
was virtually clinching its con-
troll of the liquor industry.
Two more codes, those for
wholesalers and rectifiers, were
signed by President Roosevelt to
virtually round out Federal super
vision plans for the industry.
Both Democrats and Repub-
licans joined in calling too high
the tax recommendations of
Mr.. Roosevelt's Interdepartmentai
Committee. Their opposition was
predicated on the contention that
the $3.50 tax would keep whisky
costs up to a point to make prof.
liable large-scale perpetuation of
bootlegging.
Representative West, Democrat,
Of Ohio, declared himself in favor
of a tax of $1.50 a gallon. Repre-
sentative Britten, Republican, of
Illinois, said: Nothing above $2."
Winters SIN Outside Code.
The signing of the two codes put into
the hands Of The Government. through
its newly-created Federal Alcohol Con-
troll Administration, control Of the dis
tilnpg, brewing, wholesaling and rectify-
ing branches Of the liquor industry,
leaving the winters as the only i'm
portant branch to be brought under the
Control Administration. A hearing on
70 code for the wine producers has been
set for Wednesday.
The control agency, under the diree-
ton Of Joseph H. Choate, jr.. was get
ting its machinery under way yesterday,
but 1t was deluged with demands from
importers for permits.
informally, since the President has
not been oficially vested with power to
carry on such negotiations, the ad-
ministration was bartering with foreign
countries for importations, basfng their
parleys on the proposition that Amer
ican products could be sold in the
markets of the countries given permis-
sion to import liquors, wines or beer
into the United States.
Choate, in q press conference Friday,
indicated the administration would
make its force felt only when the liquor
industry failed to keep its house in
order, but the two codes signed yester-
day vested broad authority IN the
agency.
Production to BE Limited.
The rectif1ers' code required the post
ing of q bond Of not more than SIS, 900
and allowed the administration to limit
the production of rectified spirits and
to allocate the production among MEM
bers of the industry. This code be-
comes effective today.
Both codes, drafted by the Presi-
dents committee, gave the administra-
ton power to suspend or revoke per-
mits at any time.
The wholesaling code covered both
distilled and brewed products.
During the day the distillers met with
representatives Of the Farm Administra-
ton and put their signatures on a mar
keting agreement which, among other
things, provides that 80 per cent OF ths
raw material should be drawn from the
cereal grain fields of the United States
and the balance from materials other
than grain, such as molasses. The
agreement then went to Secretary OF
Agriculture Wallace for his signature.
The Interdepartmental Committee re-
port to Congress advanced as one argu-
ment for the liquor tax it proposed q
statement that the levy might encour-
age the public to swing from usage OF
hard liquor to that Of beer and light
wine.
Tax May Be Increased.
In this connection there was ad-
vanced from some quarters of Capitol
Hill a suggestion that the liquor tax
might be kept low at the outset and
swung higher after the early stages of
the post-repeal period. This, its advo-
Gates said, would make 1t possible to
kill OF the bootleg industry at the out
set.
The committee is to submit sup
Elemental report tomorrow, embracing
some ideas formed in the days since
repeal.
The lawmakers and committee mem
bers had another bit of information
furnished to them yesterday for study
of the national liquor appetite. The
Tariff Commission compiled and issued
a per capita consumption table for the
peak years Of the period between 1900
and the beginning Of prohibition.
The table showed the consumption of
beer per capita in 1918 was 21.03 gal
Ions; distilled liquors IN 1916 was
94-100ths of q gallon, and of wines In
both 1909 and 1911, 69-100ths Of q