Evening star., 1947-05-15

Liquor Stamp Sales
Hit New High Despite
I40% Drop in Trade
By George Kennedy
/ Liquor stamp sales In Washing
ton have for the first 10 months
OF this fiscal year already exceeded
the record year ending June 80
1916, q Senate subcommittee was
told today.
Guy Pearson, District tax col
|lector, testified that his ONCE has
sold stamps for 4650, 900 gallons OF
whisky, rum, gin and brandy in
the FIRST 10 months OF the current
fiscal year. The figure for the 1916
fiscal year was 4,583, 800.
However, Alan A. Payne. chair
man OF the District Alcoholic Bev-
erage Control Board, testified that
he believes the liquor business here
has fallen Oh 40 per cent and
warned that any additional tax
might result in a decline Of sales
that would diminish the Districts
revenue from liquor taxation.
Testify ut Alcohol Clinic Hearing.
Both were testifying before SUBJ
committee headed by Senator
Cooper, Republican, Of Kentucky,
which is considering the Hebert bill
to establish clinics for the rehabili-
tation Of alcoholics.
Mr.. Payne. and Mr. Pearson dis
cussed the difference in their testi-
mony In the hall during q recess.
They agreed that alcoholic bever-
age revenues this year would be
about $200, 600 lower than the rec
ord breaking 1916, which brought
in $3,484 ,457, and that the drop was
largely due to drop in the con-
sumption of beer. Wine sales also
are OF.
Mr.. Payne sal dthe stamps sold by
the, tax collector are sent to the
distillerey and affixed to bottles
there. Washington distributors, he
said. have bought heavily to obtain
whisky, but q large portion of these
purchases are not moving. They
are remaining in the warehouses
and on the dealers shelves.
Mason Agrees to Extra Tax.
District Commissioner Guy Mason
testified he would agree to an addi-
tional tax of five cents a gallon If
the money went into the general
fund, with instructions from Con-
gress that 1t should be spent for
the general purposes Of the bill. In
this he departed from his position
in the House hearings on the bill
where he was against any additional
tax as disturbing to the tax struc-
ture." He continued, however, his
opposition to the money going into
a special fund.
Representative Horan, Republican,
Of. Washington, who is chairman of
the subcommittee on District ap-
preparations in the House, appeared
as witness to say he would have
offered an amendment to restore
the special tax on liquor sales in
the District had he been able to be
on the House floor when the bill
came up.
| The original Hebert bill provided
for a special tax of not less than
or more than 3 per cent" of the
retail value of liquor sold for the
establishment of a program to di-
rninish the burden alcoholics bring
on police, courts, prisons and their
families. 1t was amended in COM
mittee to eliminate such a special
tax and to authorize an appropria-
tion up to 100000 from the general
| fund.
Urges Restoration Of Tax.
| Mr.. Koran suggested that the
special tax be restored rs stamp
tax Of S cents gallon, cent a
fifth.
| He gave comparative figures on
tax rates and tax revenues on alco-
holic beverages in other States. He
said:
Virginia has no State tax. The
State is in the liquor business, like
my own State of Washington, and
the States revenue is from its mark
up in it's own liquor stores. In 1945
Virginia sold about the same guam
tity of liquor-that is, whisky, gin
rum and brandy--as the District of
Columbia. Virginia's revenue was
SIC 900 ,0OG; the District of Colum-
bias revenue was $3,0O0, 900.
Comparison Called Unfair.
AT first glance Government
monopoly here on the sale of liquor
would seem to solve the Districts
fiscal problem. But the comparison
Is little unfair. The District coll
lects considerable real estate taxes
from large hotel properties which
are important to total District tax
revenue.
More such hotels will be built
| in the future than would be
If bar revenue was unavailable. te
them. In addition, the District col
IIects q sizable tax total on retail
properties occupied by licensed liquor
stores"
Mr.. Horan went on, using statis-
tics of the Distilled Spirits Institute
an agency of the liquor industry, te
make comparisons. New York, he
said, sells i've and half times as
much liquor as Washington, but i'll
revenue is % times greater.
! Louisiana, he said. sold about .
million less gallons than the Dis
trict, but its revenues were three
times that of the District. Louisi.
ana's tax is 81 so a gallon; the Dis
trict's, SO cents.
Maryland, he said. which sells
about the same amount of liquor a
the District. has three times the
revenue. Maryiand's tax Is $1.25
gallon.
Representative Hebert. Democrat
of Louisiana, original sponsor Of the
jhill. followed Mr.. Horan. He said hs
WAS for n stamp tax because 1t WOULD
make more people aware Of the pro.
gram.