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Show S EN ENan'd an'd and an'dHEARD ' SEJpNHEARDNATIONALCAPITAL HEARD HEARDar.nd SEJpNHEARD SIZNHEAlTh SIZNHEAlThr ar.nd arnd a aN1TION14I r & . and lhe lheN the N N1TION14I NATIONALCAPITAL N1TION14ICAPITAL ( TION1\L TION1 L TION1LCAPITAL \ NATIONALCAPITALpy CAPITAL ' _ fY * CAPITALfY fYCarter py Carter FieldWashington Field WashingtonA Washington Washing-ton Washing ton - -A A - A sharp boost In InIquor inliquor inliquor Iquor liquor ] ti\es ti es t'l\es t'l tl byes ' \ ' is being seriously con con- considered considered considered - sidered by a 11 considerable number numberof of semtors sen'ltors senltors senators ' and members of the thehouse thehouse thehouse house No ( ' concern 'oncern oncern whitever wb'1tever wb1tever whatever ' about about"hut aboutphut aboutwhut "hut hut phut " this miy m'lY mlY may ' do to the legal liquor liquorIndustry liquorIndustry liquorIndustry Industry , or how bow it miy m'lY mlY may ' blow the thebrcath thebreath thebreath brcath breath of ot life into " whit "h'lt hlt shit ' has been beenan beenan beenan an apparently dying dylnJ moonshine and andbootJ'J andbootleg andbootleg bootJ'J bootJJ bootleg ( ' Industry Industrv is Ic ; being bcJng manifestedTtle manifestedTne manifested manifestedTne Tne Ttle whole reison rC'lson rClson reason ' for this ne\\ ne nes neroO nesmove newmove \ \ roO\ roO roOe move \ e is that the national legisla legislators legislators leglsiators tors coming up for re-election re election re-elcction elcction - - this thisfall thisfall thisfall fall are afnid afr'lid afrlid afriid ' to vote the excise excisetaxes excisetaxes excisetaxes taxes recommended by President PresidentRoosevelt PresidentRoosevelt PresidentRoosevelt Roosevelt , and In addition addltlon find that thatthe thatthe thatthe the Corporation Corporntion tax plan sug suggested suggestedby ested estedby by the White House souse must be riddled riddledwith riddledwith with " , Ith exemptions unless it Is to pIny play pInybavoc playhavoc playhavoc bavoc havoc with businessVarious businessVarious business businessVarious Various different dUIerent amounts of In Increase Increase Increase crease are being considered Most Mostpopular Mostpopular Mostpopular popular , , apparently . , , is the thought thoughtof of boosting the tax on dlstl11ed distilled dlstl11edllquor distilledliquor distilledliquor llquor liquor $1 1 $ a gallon , , which "hieb hieb shlch " would wouldmake wouldmake wouldmake make It $3 3 $ $ on domestically domestlcallv produced producedllquor producedliquor producedliquor llquor liquor , . and $550 550 $ 5 50 on Imported Ilquor liquor IlquorAnd liquorAnd liquorAnd And along with this tbls to boost the thefederal thefederal thefederal federal tax on beer from $5 5 $ to $6 6 $6n $6a 6a $ G Ga n a barrel barrelWhereas Whereas , some time hick b'lch blch b'ick bick ' , red rederal redoral Fedcral eral oral Alcohol Adminlstntor Admlnlstr'ltor Admlnlstrltor Adminlstritor ' Joseph JosephH H Clioate Choate , Jr , urged forcefully forcefuJ1y th'lt thlt tlrit th'lteven tlriteven tinteven ' even the present federal tax ta'C taC tat " ' of $2 2 $2a $2a 2a $ a gillon g'lllon glllon gallon ' should be reduced in or order order order der to ciush clush crush out the bootleg In Industly injustly industly dustly justly ( ' ' At that time Mr . . Choite Cho'1te Cho1te Choate ' said- said said"As slid s'1ld s1ld ' ' - ' "As As "Asconcerns "Asconcerns "Asconcerns Asconcerns " concerns liquor , tlie the United States StatesIs StatesIs Is 11\ 11 liti living 11lng \ lng ing in a fool fools s pnradl paradise e We Weknow Weknow Weknow know that Prohibition's Prohibitions ' Fr'1nken Fr1nken Frqnken Fr'1nkensteIn Frqnkenstein Fnnkcnstein ' steIn monster , the tbe bootleg trade , is isstill isstill isstill still with us , hut but we refuse to see seeits seeits seeits its sl size and power Particularly we weare weare weare are blind blmd to the enormous gro gros growthof " thof th thof of the nnin m'lln mlln main ' body of tlie the monster monstcr , 11 ii 11lclt iiliclt illicit lclt liclt ] dl distilling tl1hng , compared to which whichsmuggJing whichsmuggling whichsmuggling smuggJing smuggling and Industrial alcohol dl di dlversion diversion diversion version have hne hatie hn\ hn \ e been mere trifling trIlling ex- ex excresccnces excrescences ex excrescences - - crescences cresccnces on its gigantic frame " Later in the same statement Mr MrChoate MrChoate MrChoate Choate recommended rccommended : ; ' ' ' Ihere 'lllere lllere Zliere should shouldbe shouldbe shouldbe be such reduction in taxes and im hm import hmport import port duties dutles as , will ,11J 11J enible emble the Ie le Iegal legal Iegal gal producers and Importers to tocompete tocompete tocompete compete " Import Duty CutSince Cut CutSince Since that statement the reelpro recipro reelproenl reciprocal reclprocal enl cal treaty " with "ltb ltb Canada resulted In Inreducing inreducing Inreducing reducing import duties on dlstl1lect distilled dlstl1lectJiquors distilledliquors distilledliquors Jiquors liquors from all nil countrlcb countrle countries : . from 15 S5 15a S5a < ; 5a a gallon ga110n to $2 2 $250 250 $ 2 50 a gillon g'll1on gll1on gallon ' But nut the thefederal thefederal thefederal federal ta tax tae , = on dorne domestic tlc liquor hac has hasrem hasremilned ; rem rem'1lned rem1lned ' lined unchanged ( this is ndded added nddedto addedto addedto to the tariff tarlf ! duty on imported Jlquor liquor liquorof . , , of course ) , while actually actualty the ta hY hYhas taxhas has increased Incrcased in many states , due dueto dueto dueto to a general tendency to Incrcise Incrc'lse Incrclse increase ' 10 to 10cnl tocal lucal cnl cal cinrges ch'lres chlres clrirges ' : ; . . Mar Maryland land for Inst'lnce Instlnce instance Inst'lncehas instancehas Instincehas ' has added ndded a small smaH m'lnutncturers mlnutncturers mgnufncturers minufacturers'tax minufacturerstax ' ' ' tax per gillon g'lllon glllon gallon ' \ within \ Ithln the last fe\\ fe few femonths fewmonths fewmonths fewmonthsSecretary \ months monthsSecretary Secretary of ot the Treisury Tre'lsury Trelsury ' Henry HenryMorbenthal1 HenryMorgenthau HenryMorgenthau Morbenthal1 Morgenthau , Jr , . is not in sympathy sympathywith s mp'lthy mplthy mp'lthywith mpithywith ' with the move on Capitol II111 III1I 11111 to toboost toboost toboost boost liquor Hquor taxes taus tales He lle thinks thln1.s thln1s . It Itmight itmight itmight might eislly e'lslly elslly e'isily eisily ' defeat the drive drl"c drlc " hitherto hith hithcrto liitlicrto crto erto fairly successful sl1ccecsf111 : ; , , of the en enforcement enforcemeat enforcement forcement forcemeat agencies to break orcal , up the themegal theillegal theIllegal megal illegal trafficRepresentatives trafficRepresentatives traffic trafficRepresentatives Representatives of the legal legnl in industry industry Industry dustry here are very much dls dis dlsturbed disturbed disturbed turbed They hid h'ld hld ' been well welt pleased pleasedwith pleasedwith pleasedwith with Morgenthau s success in re removing removing removing moving their Illegal megal competltoI competitois competitoisbut S Sbut but fear tear that with the tremendous tremendousboosting tremendousboosting tremendousboosting boosting In profits for moonshlnCl moonshlneis moonshlneisand moonshlneisand s sand and , bootleggers lootleggers , \ which \ htch the thrent threat threntened threatened threatened ened new ta tax taw \ would could \ ould bring , theIr theirown theirown 0 own " n business bucmess ; vv \ would \ ould sulTcr suITer suffer he'l\ he'l hel heiv he'l1I hcivlli hcivlliAs ' \ 1I ifs ifsAs As a matter of fact , , some of th the theofficials theofficials otIclals officials ! who hive h'1\e h'1 h1 e hue ' \ to do with "Ith Ith " cn en cnforcement enforcement enforcement forcement tell teU the s \ writer nter riter prlv'1teh prlv1teh prlv'1tehth'1t priv privitelvthit ' itely itelythat th'1t th1t that ' they do not believe beHeve an nn Incre'1se Incre1se increase increiseIn increasein ' In tax would put a n single additlon.11 additlon11 additional additlon.11do11ar additionaldollar additionaldollar . do11ar dollar Into the treasury-th'lt treasury th'lt thlt treasury-that that treasury - thit ' the theshrlukage theshrinkage theshrinkage shrlukage shrinkage in legal sales"ould sales \ would \"ould "ould ould , " com corn completely cornpletely cornpletely pletely offset 01l'set 01lset ' the additional tax per pergaon pergallon pergallon pergallonThe gaon gallon ) ] gaonTbe gallonThe The Tbe ' 'buyers buyers ' ' strike " attitude of ofthe ofthe ofthe the public publlc against any sharp price priceraise priceraise priceraise raise Is cited . Also fear fcar that it itmIght itmight itmight mIght become "smart smart " " to know J.now Jnow . a abootlegger's abootlegger's abootlegger's abootleggers bootlegger's bootleggers ' phone numberBut numberBut number numberBut But the senators and representa represents representaUves representstires representatlves Uves tires can't cant ' ' be worried about all a11 this thisThey thisThey thisThey They want to put throu through h some somesort somesort somesort sort of ot tax bill bl1l and go home homc . Restore Exci Excise Excie e Taxes President Roosevelt Rooseelt Roose\ Roose \ elt will wiU Insist on onthe onthe onthe the senate senates s restoring re&tonng retonng & the excise exciseta excisetaxes excisetaxes ta taxes .cs cs > . to take tahe the place of the out outla outiawed outlawed la iawed wed processing pro-cesslng pro cesslng - taxes- taxes taxes-'a 'a a - ' taxeshleh taxes - " which hleh filch be he beorIginally heoriginally hooriginally orIginally suggested for tor the new tax taxbill taxbill taxbill bill , but which the house way wayb ways and andmeans andmeans andmeans means committee has thrown over overboard overboard overboard overboardPresent board boardPresent Present expectations expectaUon , are thit tb'1t tb1t ' he hewllJ hewill hewill wllJ will get his way in the senate , , des despita despite dcspite pita pite the fact that Individual sen senatoes senators senators I atoes ators are no more anxious to vote voteto voteto voteto to Impose taxes ta'ies taies ' : vv \ which \ blch hich may prove'Cnpopular proveunpopular prove proveunpopular unpopular 'Cnpopular Cnpopular ' in their states than tbnn are aremembers aremembers aremembers members of or the house But nut there thereare thereare thereare are se\ se se\cral se cral seernl several \ ernl reasons why the senate senatewI1l senatewill senatewill wI1l will yield to the President , and why whythe whythe whythe the house will then yield to the tbe sen senate senate senate senateOne ate ateOne One Is rather obvious Tho The bouse house bousehas househas househas has already alre.1dv alre1dv . Indicated a determln.1 determln1 determina determln.1tlon determinatlon determlnation . tlon to wiite wlIte write in so nnny DJ'lny DJlny many ' exemr exemp exempttons cxemptlons , tlons ttons in the tax on undistributed undistributedearnIuJs undistributedearnings undistributedearnings earnIuJs earnings of corpoiatlons corpowtlons corporations tint th'lt thlt thit ' It h his hisbecome nibbecome % become a joke > n as a icvenue lc"enue lcenue revenue " pro pri proc1ucer producer ' c1ucer ducer In fict f'1ct f1ct Met ' , It Is pretty prc v well wellngreed wellagreed wellagreed ngreed agreed now th'l thl tint tlif ' t the pn present . .ent ent . cor poration poratlon income t.nxlIt tax t.nx tnx . \ will \\lIt lIt sill have ha\e ha e \ to be beretained beretained beretained retained for this reasonThe reasonThe reason reasonThe The other reason renson , xnd and the 001 onto ontothat onthat ? > that will wl1l actuate the President In IninsistIng ininsisting inInsisting insistIng on the acceptince accept'lnce acceptlnce acceptance ' of excise eX exelse ' cJse cise taxes t3'1eS t31eS tapes ' ; , , is much le--s le s he's hes Ic - ' obvious , but butvery butvery very clear once it is stated It Is Issimply issimply Issimply simply that this Is not the tbe last lasttax lasttax lasttax tax bill bl1l Tlicre There must be another very veryshortly ver vershortly ) shortly after election . The point is that the present ta'C taC tae ta'Cbl11 taebill taxbill ' bl11 bill does not even aim at balanc balanc- balancInf balancing balancing - ing Inf : the budget buclge1 . It alms only at pro produclng producing producing duclng ducing enough re\ re revenue reenue \ enue to finance financethe financethe financethe the additlonil addition'll additionll addltional ' cost of tlie the Imme Imme- Immediate immediate Immediate - - diate p'1 p1 pigment ' ment of the bonus , plus plusthe plusthe plusthe and future- future futureprocessIng futureprocessing future futureprocessing - - the lost-p'lst lost p'lst plst lost-past past lost - pist ' , present processing taesWhich taxes1Vhlcli taxes taes taxesWhich " { Which 1Vhlcli puts the deficit , after aftcr thl this thistax thistax < ; tax bill has pissed p'lssed plssed ' and : assuming :1scumln 1scumln ; It Itraises itraises Itraises raises the required revenue re\enue re enue retienue \ , at a abillion abillion abillion billion ' ind 'lod lod gad a n half for ne\t ne t ne\.t ne.t .t net \ . ye'1r- ye'1r ye1r yeir- yeir ye'1rthe yeirthe yeir yeirthe ' - the amount spent for relief rellet in nddI atldl nddItlon atldltion addltion tlon tion to " what "hat hat shat Is held over from thisyear this thisear year . } ear Actually it will w111 not e\ e even een \ en do du dothat duthat dothat that , , for congress has been boosting boostingapproprhtlons boostingappropriations boostingappropriitions approprhtlons appropriations over bud budget et esh esti eshm'1tes estimites estimites m'1tes m1tes mites ' all a11 the 111e way wa > do down dose " n the lineFace line lineFace Face Faee Huge DeficitWhen Deficit DeficitWhen When congress faces the budget budgetsituation budgetsituation budgetsituation situation ne next t Jamnry JanU'1ry JanU1ry January ' , it will wiU f'lce flce f ficea f'lcea ' ice icea a dcdcit debclt deficit of a very huge sum , e\en e en even eenwith evenwith evenwith \ with the talaws tax ta\ ta tat " ' \ : laws then thea operating operatingOne operatingOne operatingOne One part of it will wiU be whate\ whate whatever whateer \ er the thegovernment thegovernment thegovernment government figures It will wilt spend spendthe spendthe spendthe the following to1Jowing year , beginning July July1 1 , 19J7 IDJ7 1937 , for relief Another Item ItemwHl itemwill itemwill wHl will be ' ibout 1bout 'bout bout $45000000-interest $45000000 45000000 interest $45000000intereston $ $45000 45000 $45 45 $ 000 OOQ-Interest OOQ Interest OOQIntereston 000 - - Intereston on the debt to be Incurred ne next . , = t ycar year ycardespite yeardespite yeardespite despite the Increased tax bill bl1J A Athird Athird Athird third will w11l be the Increased appro approprlationc appropriations appropnations prlationc priations : , , congress indlcntln indicating , ; no noIdea noidea noIdea Idea wh'1te\ wh'1te wh1te whites whitever wh'1teer ' \ er of ot eeonomi71ngThis economizingThis economizing eeonomi71ng economizingThis This Ishy is \ why \\hy hy shy the President did not notwant notwant notwant want to put all aU the tbe new taxes ta\es ta es tares " ' \ : on oncorporations oncorporations oncorporations corporations this time He lIe wanted wantedto to leave lcave a little fat for the next nexttime nexttime nexttime time If he put pfit ptrt It all aU on the cor corporatlons corporatlons corporatlons poratlons this time , before election electionthe , the Republlcins Republ1c'lns Republ1clns Republicans ' might be able to toscare toscare toscare scare the voters this fall bv by pointing pointingout pointingout pointingout out the certainty certamty that another tax taxb111 taxbill taxbill b111 bill was coming commg , , ' ind 'lnd lnd gnd nnke |