Evening star., 1934-01-05
|& LEVY ON LIQUOR
| REJECTED IN HOUSE
Increase in Proposed 81 Rate
Refused as Choate Seeks
Price Cut.
Continued From First Page)

Continued From First Page)
New York. Ohio, Oregon, PENNSYLVANIA,
Rhode Island, Washington and Wis
consin.
Charges were made during debate in
the House yesterday that poisonous
alcoholic beverages are being sold at
huge profits by racketeers in the LIQUOR
industry.
The major issue raised over the
! measure came on its proposed SPA
gallon distilled spirits rate which was
| estimated by Doughton as capable of
| raising $500 1000, 900 on the basis of an
expected $50 900 O0O- gallon annual con-
| sumption.
/ In support Of a higher tax rate.
oConnor argued that the advocates Of
repeal had sold the country" on the
idea OF revenue from liquor and asserted
| this was no time to run out on the
promise"
| A round of applause greeted the de-
mand Of Representative Britten. Re-
/ publican, of Illinois, that an embargo be
| placed against French wines because
OF that country's failure to paw its war
debt. Calling the French nation OF
cheaters" and "defaulting misers,"
! Britten also said President Roosevelt
Shouio force France to pay its debt or
lose its export trade to this country.
In opening debate on the measure
Doughton disclosed that the LIQUOR bill
was temporary.
A complete revision of the liquor laws
Is contemplated later. he said. adding
tnat the purpose of the Temporary
measure was to start a flow of new
revenue into the Treasury through the
rate
The 81 rate, he explained. was con-
Sldered reasonable. as well as the
maximum that could be levied to pro-
ouce the most revenue and at the same
traffic
O'Connor charged that millions Of
galIonS OF blended and rectifed poison
Gus liquor containing raw alcohol"
were being sold at high prices.
importers, he said were paving the
a,gallon duty plus the present Sl.lO-
a-gallon internal tax and were selling
foreign liquors at the same price
Domestic leaders were receiving for
poisonous liquor"
The charge of racketeering by the
oomestic liquor industry was made by
Representative Fitzpatrick, Democrat.
- 1OAhF NIIO COQLenQeQ whisky
| could be made at between 80 and 40
cents gallon and was being sold for
$40 a gallon.
II that Is not racketeering. I don't
know what it is" said Fitzpatrick
Representative Hill, Democratic. of
washington, a member Of the Ways
and Means Committee. said distillers
nad testified whisky could be made for
/ 81 and 40 cents gallon.
Holds Rate a Compromise.
| OConnor asked him If he thought
the rate Of tax would effect the price
Hill replied that the 50 rate agreed
upon by the committee was a cornpro-
mise
AS matter OF fact" O'Connor said.
the tax rate has nothing to do with
the price. If there was no tax at ali
the price would be the same today as it
Is now, would it not?"
Don't you think the distillers are
getting an exorbitant profit?"
Somebody is getting it." said Hill.
adding that good whisky with the So
a-gallon tax should sell for sl.25 TO
$3.50 quart.
Representative Treadwav Of Massa-
| chusetts. ranking Republican on the
Ways and Means Committee. said he
wanted to explain why the nine Re
| publlcans on the committee voted
present when the bill was reported
He said that after hearing joseph
Choate. jr., chairman of the Federal
| Alcohol Control Administration. and
! others a meeting of the majority mem
oers was held one night and the next
day the Democrats favored a 50 rate
Denies Roosevelt Acted.
! Doughton replied that the President
had not suggested what the tax Should
be, although the Presidents Interde-
partmental Committee had recon-
mended a $3.50 rate.
| The minority members felt" said
| Treadway, we had not had submitted
! to us sufficient evidence on which to
base the tax. We informed the ma
! lorlty We felt it was their responsibility.
/ We did not go on record as to what the
rate should be-"
/ Opposition to the s2-a-gallon spirits
rate was voiced by Representative
/ DTksen, Republican. of Illinois. who
/ comes from a whisky producing dis
trict. He said 1t was too high and
| that excessive local licenses fees and
| increased corn prices resulting from
the processing tax should be considered.
He advocated s1.5o rate.