Evening star., 1934-01-05

repeal year.
BY the Associated Press
A proposal to levy a s4-a-gallon tax
on distilled spirits was rejected today
by the House as the administration
formulated plans for decreasing the
liquor price and the amount of the
adulterated product.
In the first vote of the session by the
House, it turned down an amendment
proposed by Representative OConnor,
Democrat of New York, to the half
billion-dollar liquor tax bill which pro-
vides a s2-a-gallon rate.
O'Connor contended the tax rate did
not affect the price to consumers be-
cause of profiteering by distillers.
Representative Dirksen, Republican of
Illinois, offered an amendment calling
for sl5O. but this was defeated, 143 to
80, in rising vote. He has seven large
distillerieS in his district.
Indications were the tax bill would
be passed some time this afternoon. The
estimated revenue for the bill is S470.-
100000. including s160000,000 from a
S5abarrel levy on beer.
Asks Sale at Cost
Representative McKeown. Democrat.
of Oklahoma. said he favored the sale
of good liquor" at cost.
Il hope we don't have liquor that will
make a rat spit in a cats face" Nc
Keown said. Il am going along with
the committee on this bill"
Have you had a drink of this legal
stuff they are putting out?" asked
O'Connor.
No" replied McKeown.
II advise you not to-" O'Connor said.
-e Representative Rogers, Democrat. of
New Hampshire advocated a tax of ST.
gallon asserting that the 81 rate was
too much.
Chairman Doughton of the Ways and
Means Committee. said the 81 rate was
entirely unreasonable and urged the
House to reject it.
Explains Committee Stand.
The committee. he said had care
fully considered the rates proposed, and
concluded that So was reasonable.
The liquor tax bill. on which a vote
was planned before adjournment today,
is designed to raise $500 900 900 through
a 50 gallon tax on spirits. Sl60, 100000
through the SIS barrel levy on beer
and s100OO,0O0 in levies on wine.
Meanwhile plan intended to de-
crease the price of liquor was being
formulated by Joseph H. Choate, jr.,
Federal alcohol control administrator.
Choate also told newspaper men he
had telegraphed Governors of the 81
wet States for any information they
had concerning the sale of "adulterated
or unwholesome liquor" which can be
traced to wholesalers or manufacturers.
This was intended, he explained. as
a move to increase the supply Of whole
sale liquor.
The administrator said he would
complete his price cutting plan soon,
adding:
Il hope we will be able to shorten
the spread between the manufacturer
and the retailer
States Have Authority.
He made clear States alone have au-
thority over retailers.
ChOate indicated the other outstand-
ing problem facing the administration
is the formulation of a wholesalers
code. Along with other branches OF
lIle ulUuSlIy, WIlUlcodlClS NClC SINSll u
3O-day period ending January 9 to set
up a code Failure of this group to
act will result in a code being set up
by the administration, Choate said.
Choate promised that a general plan
for allotting liquor import quotas will
be ready soon.
Investigation into the reported ped
ding of liquor permits has disclosed
that but three offers for sale have been
made, Choate said adding that one of
these three instances was outstanding
and that a private hearing on the case
probably would be held next week.
The administration has found no evi-
dence of an outright sale of such per
NIT, he added. The F.. A. c. A. has
the power to revoke a permit If cir
cumStanceS warrant.
The kilograms went to the Governors
of Arizona California. Colorado. Con-
necticut, Delaware, Illinois Indiana,
Louisiana, Maryland. Michigan. Mon
tana. Nevada. New Jersey, New Mexico,
(Continlled on page . Column 81