The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-09-15
Profit to Higher Ups Held
Main Reason for Dime
Cost of Stein.
STATE GETS SHORT END
Cut Taken by Officials Is
More Than Tax Money
Put in Treasury.
This is the first Of three stories on
the price of beer in IndlanapOlis)
BY ARCH STEINEL
Times staff Writer


from having scent beer or, at least,
bigger and better stems for dime.
That spigot is marked "Profit-the
Pocketbook Brew"
From that one spigot, as the brew
foams into glasses of the city's
thirsty, one gets short beers because
Of the following reasons:
Because two importers in
indianapolis handle all foreign
beers at a cut of 81 cents gallon,
or 81 a barrel. Those importers col
lected $4,000, an estimate, more
money for themselves than for
taxes.
Second Because local brewed beer
is sold at estimated 81 a barrel more
than foreign beer when bought in a
neighboring state.
There's Profit Here
Third - Because the retailer
charges 81 a gallon for beer to the
consumer, for which he only pays
"a = cents gallon.
Fourth-Because there's approx
mately 30 cents a gallon raise I'M
I'll it hits the tap of a restaurant
and then the bartender adds an
additional SO cents cost to the
guzzler. so that beer which costs 80
cents a gallon to make, including
federal taxes, costs the consumer 81
a gallon at the rate of ten stems OF
u ounces each to one gallon.
Because of some chiselers,
the beer-buying public gets from 9
to 10 ounces of beer when purchas-
ing a supposed 12-ounce stein. High
collars save the bartender from bar
rel waste.
Shift Is Easy
Sixth-In some reported instances
higher priced beers have been re-
placed by lower priced beers, and
the customer, ~lInIesS he knows his
brew. never isIthe wiser as he says
"Gesundheit."
Here is an A B G of the oper-
alton of Indianas beer act, sale and
distribution:
l. The beer is brewed either by
foreign or local brewery.
2. The beer is purchased from for
eign breweries through an importer
indianapolis has two Importers
and consigned to wholesalers or dis
tributors.
3. The wholesalers or distributors
sell to the retailers and thence the
beer is sold to the drinking public.
4. The only exception to this is
beer brewed within the state. This
beer is not handled by the importer,
and. as a consequence. either goes
through the hands of a wholesaler
to the retailer or direct to the re-
taller. as keg beer is handled by
the local brewery.
So to Government
Each barrel of beer brewed in an
Indiana brewery must yield IS a
barrel to the federal government
and S155 to the state government.
Foreign beers must pay the fed
eral tax of IS a barrel and any
taxes in their local state. In addi-
ton. sl55 a barrel tax is added
when the foreign beer is brought
into Indiana.
So. before a barrel of beer is
brewed. 1t costs S6.55 in Indiana.
and in addition licenses demanded
of the state brewers run the cost
ND to Is cents a gallon monthly
,F,
month. One cent additional is
added for each gallon for cost of
bonding brewers. making S6.72 cost
for 4 barrel of beer in taxes and
licenses.
Importer Pays S12
A certain well-known foreign
brew sells for SD a barrel, thirty
one gallons to a barrel. at the brew
cry watts in another state.
The Indianapolis wholesaler con-
tracts for that beer through the i'm
porter in Indianapolis.
The importer buys the beer at SD
a barrel, or So for half barrel.
He pays the Sl55 barrel state tax,
at the rate Of cents a gallon. The
importer adds 81 a barrel. or 81 for
half barrel as his carrying charge
for bookkeeping work and the beer
is turned over TO the wholesaler for
Sl5.55 a barrel. Storage and freight
ing is paid by the wholesaler. The
importer does not see the beer. The
wholesaler may truck his beer or
may have it shipped by train.
Then the wholesaler sells this
same beer at $50 a barrel to the
retailer. making a profit of between
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