Evening star., 1933-12-13
5,595, 5,137-GALL0N
IMPORTS ALLOWED
BY ALCOHOL BOARD

IMTUn > HlIUWEU
: BY ALCOHOL BOARD
Continued From First Page)
as little as $3.50 a quart, administration
mittees said they were now inclined
toward tax of S2.20 gallon, although
it might possibly be less than that.
$3.50 Too High.
At all events, they agreed, the levy Of
So so proposed by the Presidents inter
departmental Committee is too high.
There has been much pressure, too for
continuing the present 81 10 tax the first
year to discourage bootlegging.
1t was said at F. A. c. A. headquar-
ters that a quantity of American-type
rye and Bourbon whisky, in addition
to the quota allotments, has been per-
mitted to come in to satisfy the de-
mands of rectifiers.
Demands for restification material
were greater than distillers in this
country could supply at this time. so
special Canadian importations were de-
cided upon.
The number of gallons permitted
from Canada was not made public. but
estimates have ranged as high as A.
100000 gallons
At the Capitol hearing, Paul Gar
rett of Garrett g. Co., New York
wine brokers, urged the committees to
permit the distribution of domestic
wines to homes tax free to aid agri-
cultural and promote temperance.
Cites Jobs.
He said a per capita wine production
IN this country of half the size of
Frances would give profitable employ
ment to 100000 people.
The proposed tax Of 16 cents gallon
on wines, Garrett said, would be levy
of SIS on a ton Of grapes.
j. w. Murray. prohibition liquor
dealer of Holyoke, Mass, urged the
committee to treat the liquor industry
as 'an infant industry" to aid it in
competing with the illegal trade.
Murray told of one illegal producing
organization he said had been preparing
for six months to fight the legal in
dustry.
This organization. he said, has 26
distilleries in various parts Of the coun-
try, producing a liquor that compares
favorably with the legitimate product.
He asserted it is offering liquor to re-
tail dealers in thousand-gallon lots at
81 gallon.
This, he added, included so cents for
protection
Murray ridiculed statements before
the committee that illegal producers
must pay 81 a gallcn for protection.
will you give us the name OF the
organization?" one of the Congressman
asked.
Refuses Name.
II wouldn't dare" Murray replied. Il
have family to bring up"
will you give it in executive session, F"
another committee member asked.
I'D be afraid to-" the witness replied.
eff anything happened they would
blame it on me-"
Murray recommended a tax OF 81 so
be levied on liquor, with 40 cents OF that
going to the States in return for their
eliminating State taxation.
Elaboratlng upon the lllegitimate
liquor organization, he said it was using
airplanes excessively and providing a
24-hour retail service.
"They make us in the legitimate busi-
ness look like pikers," Murray said. I'VE
couldn't begin to compete with them.
Murray testified II large syndicates
were operating IN the illegal trade IN
this country.
Bounty Proposed.
Representative Knutson. Republican,
of Minnesota, suggested the bootlegger
gangs could be broken up by placing a
"bounty on their heads" as bounties
are paid for wolves in the north coun-
try. He suggested a bounty of $2,500
a head.
Representative McClintic, Democrat,
of Oklahoma, asked what the effect
would be if penalty was applied to
the purchaser of illegal liquor.
Murray said he did not believe that
would work, because it would make it
even more difficult to catch the illegal
seller.
william L. Cauffman, speaking for
Philadelphia liquor dealers, urged Con-
gress to let the present tax Of $1.10 a
gallon stand, asserting it would bring
in more revenue than higher tax
During the hearing Representative
Knutson told newspaper men he would
offer an amendment to the liquor tax
bill to double the tariff on importa-
tions from countries that have not paid
their war debts.
The excess revenue collected, he said,
would be applied against the debt OBJ
legations.
DR.. Gulick defended estimates Of the
Rockefeller Foundation that the IL
legitimate trade could not deliver
whisky to retailers for less than 81
gallon because of the high cost of pro-
lection.
Bootlegger Still Threatens.
Gulick testified, however, the "shrewd-
ness" of the bootlegger presents
distinct threat to the legitimate in
dustry."
"The bootlegger can't be stamped out
by low taxes" Grllick said. He will
still compete, but at the same time
high taxes will be an incentive"
DR.. James NJ. Doran, Spokesman for