The Western news. [volume] (Libby, Mont.) 1933-current, 1936-04-23
SEEN
HEARD
around the
NATIONAL
CAPITAL
By Carter Field y
By Carter Field

Washington.-A sharp boost In liquor
taxes is being seriously considered by
a considerable number of senators and
members of the house. No concern
whatever about what this may do to
the legal liquor industry, or how 1t
may blow the breath OF life into what
has been an apparently dying moon
shine and bootleg industry Is being
manifested.
The whole reason for this new move
Is that the national legislators coming
up for reelection this fall are afraid
to vote the excise taxes recommended
by President Roosevelt, and In addition
find that the corporation tax plan sug-
gested by the White House must be rid
died with exemptions unless 1t Is to
play havoc with business.
Various different amounts OF In
crease are being considered Most pop
ular, apparently, Is the thought OF
| boosting the tax on distilled liquor 81
gallon, which would make 1t So on
domestically produced liquor, and $3.50
on imported liquor. And along with
this to boost the federal tax on beer
from SIS to So barrel.
| Whereas, some time back, Fed
eral Alcohol Administrator Joseph Il.
| Choate, Jr., urged forcefully that even
the present federal tax OF 50 a gallon
should be reduced In order to crush out
the bootleg industry
AT that time Mr.. Choate said. las
concerns liquor, the United States Is
living In fools paradise. We know
that Prohibitions Frankenstein mon
ster, the bootleg trade, Is still with US,
but we refuse to see its size and power.
Particularly are we blind to the enor-
nous growth of the main body Of the
monster. Illicit distilling, compared to
which smuggling and Industrial alcohol
diversion have been mere trifling ex-
crescences on It's gigantic frame"
Later In the same statement Mr.
Choate recommended: There should
be such reduction In taxes and import
duties as will enable the legal produc-
ers and importers to compete"
Import Duty Cut
Since that statement the reciprocal
treaty with Canada resulted In reduc
Ing Import duties on distilled liquors
from all countries from S. gallon te
$3.50 a gallon, But the federal tax or
domestic liquor has remained un
changed (this is added to the tariff
duty on imported liquor. of coursel
while actually the tax has increased IL
many states, due to general tendency
to increase local charges. Maryland
for instance, has added q small manu-
facturers' tax per gallon within the las
few months.
Secretary OF the Treasury Henri,
Morgenthau, Jr., Is not In sympath,
with the move on Capitol Hill to boos
liquor taxes. He thinks 1t might easil.
defeat the drive, hitherto fairly sue
cessful, Of the enforcement agencies
to break up the Illegal traffic.
Representatives Of the legal industr,
here are very much disturbed. The,
had been well pleased with Morgen
thaus success In removing their illega
competitors, but fear that with the tire
mendons boosting In profits for moon
sinners and bootleggers, which tn
threatened new tax would bring, thei
own business would suffer heavily.
AS matter OF fact, some OF the OF
fcials who have to do with enforce
ment tell the writer privately that the
do not believe an increase In tax woul
put single additional dollar into tn
treasury the shEnkage In lega
sales would completely Offset the add
tinnal tax per gallon.
The buyers strike" attitude Of tn
public against any sharp price raise
cited. Also fear that II might becom
'smart' to know bootleggcrs phon
number.
But the Senators and representative
can't be worried about all this. The
want to put through some sort of tn
bill and 20 home