Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-09-14

yention probably win be" held IN
Michigan.
Principal speakers at the closing
session were Harry IsoIre, vice pregi-
dent Of the Import 90. Washington,
D. c.. and David E. Dunn OF Mont
gomery Ala, state director OF Nthe
| Brewers Distributing Co -Four other
speakers discussed advertising pro-
/ grams. They were NJ l. Curtis, Iowa:
G. Nicholas lift, Idaho; w. T. Leonard,
/ Ohio, and Thomas +. Locke, Maine.
open States Would Join
/ Representatives OF four open" states
asked that they be admitted to mem
/ Dershlp. The association is composed
OF representatives Of those states which
conduct wholesaling on a state-operated
monopoly basis.
Speakers emphasized liquor law en-
forcement and revenue.
Stewart Berkshire of Washington.
D. c., Of the internal revenue DEPART
ment, said state and federal officials
should have constantly before them
Two detectives in enforcement of laws
relating to liquor: first regard for
public welfare and, second. Collection
OF revenue so necessary in these DAYS
OF mounting costs to defray expenses
OF education, social security and ma
tional defense.
The first must not be sacrificed for
the second" he said. The second SUI
ferS because of law violators who have
no regard for public welfare and no
scruples against evading taxes. You
must bear in mind that the law of
diminishing returns will begin to op-
crate and bootleg activity stimulated
at the point where the cost of produce.
due to tax increases, places it beyond
the reach OF the low income group
OF consumers. A defense tax will be
collected to the extent that we are able
70 hold consumption within tax-paid
channels.
Consider Uniform Tax
Enforcement of laws requires vigil
lance and aggreSsiveneSs on the part
OF officers. States and the federal
government should coordinate ideas
ana programs. We should consider a
uniform tax on all alcoholic beverages
and relieve states of the present bur-
oen OF collection. The government
should act as the collecting agent. A
baslc federal tax on distilled spirits
should be predicated on the alcoholic
proof OF the product and paid at the
. eiIne OF removal from bond warehouses.
spirits are rarely removed at less than
100 proof. Subsequent diIution does
not result in imposition of an addi-
tlonal tax. Under this situation. there
would be an incentive for producers
to market spirits of high proof as they
bear no greater tax burden than spirits
of low proof.
: 7 am definitely opposed to any plan
encouraging consumption of diluted
spirits. States might well consider a
change IN the present basis of taxation
from wine gallons to proof gallons
with the view to consumption of spirits
OF lower proof. This would result in
less addiction to alcohol and more
ssT7ooflaov Hove. ,,.o.t-.A, a -
gives bootleggers an advantage over
legitimate producers. Recent tax in
,reases give rise to fears that conSum-
erS IN the low income bracket are
driven to patronize bootleggers. The
need Is for low proof tax paid LIQUORS
n small containers which they can
afford to buy. Through lack of this.
ne government already is being de-
.Iauoed OF millions in revenue, With
higher prices due to tax increases. the
problem grows more general and
threatens to become more real"
M. y. MCNAMARA, vice president OF
he Distilled Spirits institute. read
President Owsley Browns paper on
problems facing the distilled LIQUOR in
iuSIry. War threat has revived &C
lVltleS OF prohibitioniStS, he said.
and control boards cannot work with
organizations as they are
working back to the proven evils of
prohibition days, when lust as much
liquor was consumed without the gov
rnment getting the revenue.
SObriety Is keynote
The keynote of the convention is
o try to promote sobriety and modera-
ION. Functions of control boards are
by the public. They are
nown as engaged in the liquor bust
eSs instead of control They are an
lolS 70 cooperate with other groups
q lettering conditions. The bubble
hould be educated to dangers of abuse
liquor but it is inconsistent for
ontrol boards to do it. Boards have
o funds for literature Schools should
e given instruction. Boards wish to
cooperate by supplying correct infor-
latlon If schools would ask for it,"
w. Margolis, president of Liquor
New York, spoke on bottle
eftlling. He said the growing problem
taxes. Last year refilling went up
percent and constitutes 1OA percent
all liquor violations.
w. w. Gail of Billings discussed in
IlStrial conditions and Americanism.
e said America is accused of having
ealth concentrated in a few hands,
hich Is not the case, since "a percent
)eS to labor. This is the only country
the world with the right of collec-
We bargaining and the right of labor
organize, he stressed, and he men,
oned the danger of letting agitators
ork out our destiny.
, H