The Western news. [volume] (Libby, Mont.) 1933-current, 1934-03-22

lHlUiY uULUlIlE ClSG NAiNh $50 49, r
duce a roar from local industry which
might be embarrassing politically.
Liquor Production
Tremendous production capacity OF
the distilled liquor industry Is giving
some concern to the administration.
Distilleries already In operation are
producing far more than the highest
estimates of consumption ever made
In addition. new distilleries are being
rushed up, which will augment that
nromise of a surplus which cannot be
sold at profit when the liquor Is
ready for the market.
The situation Is brought about, OF
course by the fact that there Is NOT
nearly enough good whisky at the mo-
ment, and no prospect OF enough 70
supply the demand for some time 70
| come. But that time Is coming, and II
spells trouble for the distilling INDUS
| try when 1t arrives
Some SO distilleries have already
been licensed. Official estimates OF
their capacity is $4,000 proof GALLONS
day. The term proof gallon, always
used by the government In computing
taxes. means liquor containing just 50
| ner cent alcohol. Actually, OF course,
| much distilled liquor has always con-
/ tanned less, and very little has con-
tanned more. So the figures are very
conservative.
But to this present capacity must be
added plants building and in prospect.
RI their estimated capacity Is added.
the total becomes 100000 proof GAL
Ions instead of 6S0,000 day
| The point, of course, Is: How does
this compare with probable consump-
ton? Estimates of this have run
around 140,OOO,0O0 proof gallons a
year But the Treasury department,
In making its estimates for tax pur-
poses has figured 80,O00,0o0 proof gal
Ions Of domestic production, plus 20
100000 gallons OF imported liquor.
Exceeds Estimates
Which indicates that the present ca
nacity alone exceeds the treasury es-
Inmates for consumption by just lOO
ner cent, while the total production, II
all the plants now seeking licenses are
added, will exceed the total consump-
tion by four times-not allowing for
any volume of imported liquor at all
Discounting this slightly, though
certainly not enough to arouse enthu
sIasm about starting new distlllerles
Ia the fact that the treasury has prob
i, ably been conservative In figuring rev
enues. 1t may we'll be that the aetna
consumption of legal liquor will b.
much greater than the experts In thu
treasury have calculated.
But not by four times!
Not. indeed, unless the treasury ex
perts made the biggest miscaiculatloi
of all their history In figuring rev
enues In advance.
In addition, there Is no guarantee
that the percentage OF imported hquo
! will not greatly exceed that being cal
+ culated at the moment. At present
for instance, the import duty on hquo
Y is SIS a gallon-this being on top OF al
q taxes which domestic liquor has t
G pay. This S5-a-gallon tax, for In
D stance, does not exempt the importe
) liquor from the governments Saga
Ion tax on domestic liquor Nor fror
II any of the local taxes, nor other FEC
, eral taxes. In other words, there Is
Il charge Of s125 for every quart, or
: for every fifth-most Imported liquo
a being sold In fifths-on Scotch or Iris
II or Canadian whisky. or on Frenc
a brandy or Jamaica rum In addition
!, the charges for domestic liquor.
r. But this Is not opt to endure 1t
e quite probable that the tariff on In
o porfed liquor Will be reduced. II
1t being advocated to increase total re-
IF enue. and to encourage American G.
II ports OF other products
/