Evening star., 1933-12-16
LIQUOR MAY FORCE
PAYMENT OF DEBTS
Democratic Group Would
Ban Quota Pacts With Ma
tions Which Default.
BY the Associated Press.

By the Associated Press.
A vastly increased import quota for
French. wines is being considered by
the Government simultaneously with
report that congressional committees
are considering using liquor importa-
tions as a bargaining wedge for debt
payments from foreign nations.
The Federal Alcohol Control Admins
temporary quota for French wines had
been increased substantially and said
the action had been predicated on the
French governments decision to give
reciprocal tariff action on American
apples and pears.
II developed today, however, that
Frances proposed tariff increase on
these products is holding up final
agreement on the increased liquor quota
to be given that nation.
Despite the announcement by the
Federal Alcohol Control Administra-
ton. Acting Secretary Of State Phillips.
said no final settlement would be made
until the tariff question has been
cleared up. The American embassy in
Paris has been requested to adjust the
question.
In the midst of these DEVELOPMENTS.
President Roosevelt, the Treasury De-
partment and the Navy launched upon
a post-repeal attack against rum-run-
ners. This campaign was precipitated
by what Treasury officials called chal-
lenge to the Government, coming in
directly from the British freighter
Mogul. lying of the California coast
with 10000 cases of liquor in her hold.
Further Concessions Possible.
France, control administration off,
cials said in explaining the increased
wine quota, also had raised by so per
cent the quota on salt pork and ham
from this country. The original four
month quota figure given for France
was 784, 900 gallons, majority of which
was understood to be wine, with the
balance made up Of brandy. Further
mutual concessions" were mentioned as
possible by officials Of the alcohol
agency.
Democratic members of the Ways
and Means Committee were described
as strongly inclined toward inserting in
the proposed act q provision to give the
President broad powers to enter bilateral
trade agreements with liquor importing
countries, but barring such agreements
with nations delinquent in war debt
payments. The provision would be
mandatory except when debtor nation
proved beyond doubt its inability to pay.
Democratic members also were un-
derstood to be agreed that liquor taxes
should be sufficient to bring into the
Federal Treasury at least 1920, 200, 900.
Favor Single Tax.
If feasible, the majority members
of the Ways and Means Committee also
incline toward a single Federal collec-
ton of liquor taxes, with an alloca-
tion to the State. Among the alloca-
ton figures mentioned was Is per cent.
Representative O'Connor, Democrat,
of New York, one of the leaders of
the fight for repeal, said today he
would ask for a congressional investi-
cation of the liquor trust" the exist
ence of which he charged when he
appeared before the joint liquor tax
hearing Thursday.
The New Yorker also challenged the
right Of drug stores to sell blended
whisky, saying he had filed with the
Pure Food Bureau of the Agriculture
Department complaint against this
practice.
A report that the Federal Trade Com
mission had ordered an investigation
of the alleged whisky trust was denied
by two members, James M. Lands and
G. S. Ferguson, who said the request
for an inquiry had not been brought
before it.
News Of the challenge" from the
freighter Mogul came to the Govern
ment through DR.. James M. Doran,
director of the Distilled Spirits Insti-
tute and former head of the Bureau Of
Industrial Alcohol. Doran turned over
to the Treasury a telegram signed by
"The Siegfried Olsen Shipping Co.," Of
San Francisco, which said the COM
pany represented the freighter's owners.
I'VE desire to enter this vessel into
the harbor of Los Angeles and place
merchandise In bonded warehouse sub
ject to sale In accordance with any i'm
port quotas that may be set up" the
message said.
This cargo represents all liquor
destined for smuggling purposes OF
Pacific Coast which means, If vessel Is
allowed entry, cessation of smuggling
activities on the Coast for at least six
months"
The Treasury ofIicials coupled this
statement with the additional one that
the owners Of the cargo would sign
af1davits ito cease all sales in future
to smugglers II your approval to entry
Is received In deciding that the tele-
gram constituted challenge.
The Government replied to the tele-
gram with . presidential order to the
Navy to cooperate with the Coast
Guard in starrping out Pacific Coast
liquor runnir-.