Evening star., 1933-11-06
FEAR BOOTLEGG|NG
DUE TOL|QUOR TAX
Statisticians Urge Congress
to Reduce Estimated Reve-
nue. of $700,OOO,O
ny the Associated Press.


ny the Associated Press
Government statisticians estimate
that unless congressional tax experts
pare down sharply the $700 900 900 they
estimated should be collected from
liquor, wine and beer taxes the first
year following repeal it viii be difficult
to keep the levieS low enough to pre-
vent continuation of bootlegging
Their opinions are based on q Tariff
Commission compilation of alcoholic
beverage statistics dating back to 1900.
just made public. showing the highest
revenue ever obtained from distilled
spirits, wine and beer was S483, ,000. 900
In 1919, the year before prohibition.
The internal revenue taxes that year
were S2.20 a gallon on distilled spirits
and wine and SEA- barrel on beer
Present levies are Sl.l0 on the first
two and IS on beer.
Showed Drop in 1919.
Consumption in 1919 for all three
kinds Of liquors. the report shows, was
s9l 100000 gallons, only about half that
Of the war years and the eight years
preceding, but levies in the earlier
years were lower.
The highest consumption was 2,232,-
600 900 gallons in 1918, but only
$3.50, ,000, 900 in taxes was collected. The
levies then were the same as at present
on distilled spirits, namely, Sl.l0, but
wines we're taxed only around 8 cents
o gallon and beer only 81 a barrel.
The statisticians figure the $780,
900 900, which would go long way
toward balancing the budget and pos
sibly permit repeal Of some Of the spe-
cial taxes enacted last session, might
be raised under the proposed new
levies, but say consumption would have
to. hit the pre-war average of around
1,500,000, 600 gallons
Some leeway, too, would have to be
left for State taxes, and If the Federal
levies we're placed too high and the
States tackled on some more, the tax
trainers feel the Illicit trade would be
tremendous
Compared with domestic tax reve-
nues, receipts from tariffs on imported
liquors have been small. The largest
from this source was collected in 1914
$19 9,025, ,565-and the year before pro-
hibition it was only sl,l64,l89.
Duties Lower Before War.
In 1914 the duties were 1910 a gall
Ion on distilled spirits, as against SIS
now; % to As cents a gallon on beer, as
against 81 at present, and 50 against
$6 on sparkling wines and IS to go
cents, against SIPS on still wines.
The 1919 internal revenue receipts of
S483 100000 in round numbers, in
cluded 1858 100000 from distilled spir-
Its, ll7,000, 900 from fermented liquors
and sl1, ,000,000 from wine.
The commissions report saws the
peak consumption of 2,232 ,000, 900 gal
Ions in 1913 consisted of 9o.92 per cent
beer, 6.58 per cent distilled spirits and
2.50 per cent wine. The year before
prohibition, when 1t was 99l, 900, 900,
showed drop in the beer percentage to
1854, with spirits 9.46 and wine $40.
The highest consumption of spirits
was 96,000,000 gallons in 1917, the year
America entered the World War 1t
was oo,o0O,oo0 the year before prohi-
pltlon. The peak for beer was 2,000,-
0OO. 900 gallons In 1914, and wine GA
100000 in 1911
These statistics are being issued at
TINS time because of the immediate
neeo, the commission said, "and viii
be followed later by a comprehensive
summary of tariff information which
VIII discuss specifically the economic
problems of the United states com
merce in alcoholic beverages"
Wine Industry Aided.
The Reconstruction Finance Corpora-
ton, with its great powers of financing
american business, already has put
forward its hand to help wine manu-
facturers.
When the repeal trend reached its
neignt, months ago. the corporation was
ioanlng money to wine pressers to aid
IN handling the surplus grape crop in
various parts Of the country.
The legalization last April of 80 wine |
was tne foundation of the plan. In |
LHaking the low voltage product, wine
OF nigh alcoholic content must first be
made and then dealcoholized, much as
brewers hold beer to the legal limit.
The loans were made under the Sec
ton OF the reconstruction act permit |
ting Lending to professors of agricul- |
ture products. The great majority of |
processing loans were to Gamers of |
corn, tomatoes and similar farm prod |
ucts.
But wineries in California, New Jer-
sey and other grape-growinq sections
applied for loans and when they could |
give adequate security, obtained the |
needed money.
mortgages on plants, old supplies Of |
wines and other property. The new
crop, however, was not taken as the |
entire security In any instance.
Although making loans to wineries, |,
policy to the extent of financing dis |
tiIleries, taking the stand that no per-
tshable agriculture products were in