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Show lllTl IS PROBABLE UNDER mm LAWS Prohibitive Tariffs Upon Distillation of Whisky and Other Spirits Is AgTeed Upon. MANUFACTURE MAY HALT DURING WAR Supplies Now in Bond Expected Ex-pected to Last Long ' Enough to Remove Curtailment Cur-tailment of Revenue. WASHINGTON, June 4. Prohibition was approved by the senate finance committee today as a new feature of the war tax bill. Prohibitive taxes upon distillation of whisky and other spirits for beverage purposes, with a ban upon their importation, impor-tation, were agreed upon by a substantial substan-tial majority of the committee. Taxes ..fixed by tha house on beer and wines were loft unchanged, though they have not yet been finally approved. General suspension of beveage production pro-duction by distilleries and" use of liquor now in bonded warehouses , probably would be tho effect of the new tax bection if enacted into law. Curtailment of liquor consumption during the war and conservation of foodstuffs used in manufacturing distilled dis-tilled spirits, Chairman Simmons said tonight, constituted the dual object of the committee in adopting tho substitutes substi-tutes for the house rates. Manufacture of alcohol for industrial, mechanical or .medicinal purposes would not be affected, af-fected, i In addition to the present, tax of $2.20 per gallon on the liquor, a tax of .t'J'J per bushel (from $r, to .!) a f gallon upon all grain, cereal or other t'oodstufrs used in manufacturing whisky whis-ky or other distilled spirits for use as beverages) was written into the bill. Senator Simmons said the increase would be prohibitive upon manufacture while the law is in effect, or during the war. Increased taxes of $3 per gallon upon molasses, syrups and substitutes used in distillation for beverage purposes pur-poses also were agreed upon. Permits for exportation would be given only for war purposes upon application by a nation na-tion at war with Germany. As supplementary- legislation, the committee com-mittee further approved an amendment prohibiting importation into this coun-trv, coun-trv, Porto Rico and the Philippines of distilled spirits made from any foodstuff, food-stuff, except for industrial, mechanical or scientific purposes. Senator Gore of Oklahoma, a prohibition advocate, was the-author of the liquor amendments. amend-ments. The prohibitive taxes, Levi Cooke, counsel for the national distilling interests, in-terests, said tonight, will result in virtually vir-tually complete cessation of distillation distilla-tion for beverage purposes. Senator Gore estimates that supplies of distilled spirits now in bonded whis-kv whis-kv would, according to tho present rate of consumption, last for between two and three years, thus removing the prospect of serious curtailment of federal fed-eral revenues for that period. Tomorrow the committee plans to consider the wine and beer schedules and documentary stamp taxes. In addition to determining the liquor 'questions today, the committee voted tentatively against increasing second-class second-class postage rates on newspapers, magazines mag-azines and other publications. A flat 2 per cent tax on advertising receipts was, instead, agreed upon. Publishers receiving less than $2000 annually from advertising have been'suggested for exemption. |