Evening star., 1933-12-21
SENATE HEARINGS
QND|STR|CT LIQUOR
MAY OPEN IN WEEK
King Promises Action if
Enough of Committee
Members Are Here.
EFFECT OF RUM LEVIES
ON OTHER TAXES DOUBTED
Reasonable Rates Asked by NC
Caran and Reynolds-Sales
Plan Drafts Begun.

hearings before the Senate District
Committee on local liquor control legis-
lation may be set for the middle of
next week, Chairman King said today,
if he finds a sufficient number of COM
mittee members will be in the city to
justify going ahead at that time.
Discussing the tax and license phase
of the matter, Senator King indicated
he is not certain whether new revenue
derived by the District from liquor taxes
would make possible any downward re-
vision of other tax levies.
"The growth of the city and the
legitimate demand for improvements,
such as school buildings, a sewage dis
posal plant and similar projects, neces-
sarily will entail increased expenditures
by the District in the near future. and
this will have to be borne in mind in
considering the effect of liquor control
revenue" Senator King said.
Will Seek Temperance.
He will not undertake to decide in
advance of the hearings at what level
taxes and license fees should be fixed
in the local bill. but he said his gen.
eral aim in considering all features Of
the local bill would be to promote
temperance. The Senator said he wants
to discourage drinking, particularly Of
hard liquor. but is not sure that high
taxes on hard liquor and low taxes on
beer and wine is the best solution.
He does believe however there should
be some differential in tax between beer
and wine on the one hand and hard
liquor on the other.
Two other members Of the District
Committee have made known their op-
position to a high local tax per gallon
on liquor Senator McCarran. Demo-
crat. OF Nevada, said he thinks there
should be moderate tax. He suggested
that the Federal tax be not more than
SITS a gallon and that the total of
both Federal and local tax should not
exceed So
Senator Reynolds, Democrat. of North
Carolina. also recommended that the
total of Federal and District tax be not
more than So, but he suggested di-
vision of So Federal tax and not more
than 81 local tax. He argued that II
the rates are placed any higher than
that the licensed dealers will have to
face competition from bootleggers and
speakeasies. or the possibility OF local
residents going outside the District to
make purchases.
Still Studies Income Tax.
While discussing the revenue features
of the control bill, Senator King said
he is still studying the possibility of
substituting a local income tax for the
present intangible personal tax, but
that he has not decided whether he
will introduce such bill at this ses-
sion or not He said he believes the
! income tax would be fa1rer than the
Intangible personal tax, but he pointed
ou. that such a change has always met
with opposition from District residents
| in the past.
! Meanwhile. drafting of regulations
for sale of liquor here was begun today
at the direction of Commissioner George
E. Allen.
The regulations will relate to a large
number of questions not to be coverad
in the proposed legislation. These are
rules which will be adopted by the
Commissioners to carry out the general
purpose Of the legislation.
Draft to Be Ready Soon.
The drafting of the bill itself will be
finished soon, officials said. With the
exception of section or two 1t Is now
completed, but the entire measure Is to
be reviewed by Allen and Corporation
Counsel w w. Bride before it is sub
mitted to the Board of Commissioners.
1t was not known today whether the
bill is to be taken up for approval by the
Commissioners tomorrow, as originally
planned.
The Commissioners have received nu-
merous suggestions for the appointments
to the Liquor Control Board. Friends
of candidates have called in person to
suggest names.
The Commissioners have declined to
discuss the matter, saying that there as
yet is no liquor control board. 1t is
stated, however that the board will be
named Immediately if Congress approves
the legislation for the control board.