Evening Star Newspaper, December 18, 1932, Page 4

A—4 » SLBEEREAPETE TO N I LS Special Bill for D. C. Held Needed if Brew Is Legalized. (Continued From First Page.) have to write new lav: for that pur- pose. The legislatures of 42 of the States are to meet in January and ‘would be in a position to tackle the question. When the showdown comes in the House on the beer bill much may de- pend upon the final shape of the meas- .ure. If present plans are carried out, the bill will be debated -under general rules of the House and will be open to amendment. It might be amended so as to reduce the alcoholic content to 2.75 per cent and also to provide against the sale of beer in saloons. Such amendments might, if adopted, affect the votes of a number of the members. The vote on the opening day of the session on the Garner resolution for the regmm, ¢ the eighteenth amend- ment was 272 “ayes” and 144 ‘“noes,” divided as follows: “Ayes,” 168 Demo- crats. 103 Republicans and 1 Farmer- Labor: “noes,” 44 .Democrats and 100 ans. ' Eighty-one of the op- of the repeal amendment were | “lame duck” members of the House, 11 Democrats and 70 Republicans. W the ate will do with the beer bill if it 1s passed by the House and sent to the Senate is a question. The Democrats of the Senate laid down the proposition at a caucus of their own that the beer bill should be re- ferred first to the Judiciary Comaittee to pass upon its legality and second to ‘ommittee, since it is a re and that committee ; ver all such legisla. No Amendments Proposed. Senator Smoot of Utah, Republican, #nd chairman of the Finance Commit- tee, said yesterday he thought his com- ver, might have the job with the beer bill from every He scid, further, that there was | to prevent the Finance Com- from addjng other revenue fea- to the beer bill if it seemed wise L . that so far cre had been no_ proposal for such amendment of the beer bill. Whether an attempt would be made to add to the beer bill a general manufacturers’ excise tax, such as suggested by Presi- dent Hoover in his message to Con- gress. Senator Smoot said he did not know. Senate leaders expressed the opinion that if the House passes the-beer bill this week, as it is expected to do, the mensure could be brought to a vote in the Senate at the present session, Many Senators believe the Senate would pass a beer bill if it voted on it. Nearly all Soushern Democratic *as well as Northern and Western Demo- cratic Senators are willing to vote for a becr bill. On the Republican side there are a number of Senators, like Bingham of Connecticut, ready and anxious to support such a measure. Senztor Watson of Indiana, Republi- can leader: Senator Smoot of Utah, and Senators Harrison of Mississippi and Walsh of Montana expressed the view a beer bill could he brought to a vote in the Senate before March 4, provided it is properly put through the House. ‘They said they knew of no plans for a filibuster against such # mezsure. However, the legjziative situation looks none too bright for a beer vote in the Senate.' "That tady has still to act upon all the appreoration bills, It Wwill have before ft the Glass banking bill and many other important meas- ures before the session closes. Veto of 3.2 Beer Forccast. Considerable confidence was expressed by Republican leaders at the Capitol that President Hoover would veto a beer bill if it came to him, particularly if it provides for as high an alcohalic con- tent as 3.2 per cent and also made no provision against a return of the saloon, That Congress would be able to pass a Jbeer bill over a presidential veto is Jot crecited in informed quarters. It would take a two-thirds vote in both houses to override a veto. The Senate Judiciary Committee has & subcommittee at work on a repeal of the eightcenth amendment resolu- tion, composed of Chairman Blaine of Wisconsin, 1d Senators Borah of Idaho, H of Rhode Island, Walsh of Montana and Dill of Washington. So far it hes passed tentiatively on a provision designed to protect the dry States from a flcod of liquor from wet States if the prohibition amend- ment be repealed. It is the hope of members of the subcommittee they will b able to report to the full commit- tee within a couple of weeks. Pres- sure of cther work has handicapped the subcommittee and prevented more frequent meetings. At present it has before it for consideration proposals io place in the repeal amendment a bar to the return of the saloon. While this is backed by some members of Congress, there is a biz demand for an outright return of control of the liquor trafic to the States. I. is admitted that it will be extremely difficult to write into a constitutional amendment 8 bar to a saloon, Furthermore, if such a ban were adopted. the Federal Gov- ernment would necesearily be involved in the enforcement of the law. Would Expedite Action. Senator Bingham has two beer bills now on the Senate calendar, both with reports, but nevertheless with status. They were reported Manufacturers’ Committee, v Senator ‘Ea Follette. The Connecticut Scnator 15 seeking to find some way in which he could substitute for one of his bills noty op the calendar the House beer bill, after it. may have: passed that body, 50 25 to expedite its consideration in the Scnate, Discruntled advocates of the legali- zation of wine as well gs beer, who were turned cown by the Ways and Means Committec of the House, yester- ‘day haunted members of the Senate, secking to impress on them the need of amending the beer bill so'as to include wine when the measure reaches the Upper House. wine legislation are not inclined to view with complacency the passage of a bill providing only for the manu- facture and sele of beer and ale. Representative Lea. Democrat, of California, leader of the wine hloe, spid that under House rules an amendment to the beer measure to legalise wine would not be germane and that his groun would seek legalization of wine through an amendment to the ir and when it reaches the Senate. YUGOSLAV KING QUITS DUTIES FOR BIRTHDAY By the Associated Press. BELGRADE, Yugoslavia, December 17. —Leaving affairs of state to look sfter shemselves today, King Alexander of Yugoslavia was celebrating his 44th birthday anniversary. ‘The official function on hhmblrthdlly niversary program was -nu’v- Ing service in the Belgrade Cathedral of the Serbian Orthodox Church. Aside from this public appearance, Alexander spent most of the day.with members of his immediate houselold. Queen Marie, who recently visited her mother, Queen Marie of Rumania, re- turned 'for the occasion and Princess Mlizabeth of Greece was also here. On the King's return from the cathedral, it !was his_9-year-old son, Crown Prince Teterswho Was first-to oong;tw him him his first birthde® anni- Wirstfy present. ! ' THE SUNDAY STAR, WASHINGTON, ‘D C., DECEMBER 18, 1932—PART ON. Text of Revised Beer Bill Change of Sentimer: Siressed Political Parties Took Prohibition Views ‘The text of the majority report of the House Ways and Means Committee re- rting the Collier bill for 3.2 per cent g:el’ follows: That there has been a_ considerable change of sentiment on the part of a majority of the people of this country with reference to the question of pro- hibition since the adoption of the eighteenth amendment can herdly be controverted. Recognition was given to this sentiment in the platforms of the two great political parties in the last| election. Whether the eightecnth amend- ment is to be wepealed or changed is yet to be determined and will, of course, re- quire the favorable action of two-thirds of the membership of both Houses of Congress and of the Legislatures or con- ventions of three-fourths of the States. Pending the determination “of this question, the Congress has the power to make such changes in the national prohibition act as it may see fit, keep- ing in mind the letter and spirit of the | amendment. In other words, it may | permit the manufacture and sale of any alcoholic liquor which may reasonably be said to be non-intoxicating in fact. Aside from responding to the popu- lar demand for mocification cf the na- | iicnal prehibition act within constitu- tional ilmits, your committee recognizes | in the legalization of the manufacture of a palatabie non-intoxicating beer source of revenue which in the years prior to 1920 was a very fruiiful one. The Congress has been advised | President of the siate of the Federal | revenues. In spite of tie imposition of many new taxes at the of Congress and the increas Xist- ing levies, it has been found that the budget is still far short of being bal- anced. not only for the ficeal year 1933, but for 1934 as well. The Con- gress is faced with the task of either finding new sources of taxation or in- creasing existing levies, and your com mittee feels that the tax on no; intoxicating beer. constituting a new source, will be a large factor in making up the necessary revenue, $5 a Barrel Tax. The bill provides for a manufactu ers’ excise tax of $5 a barel on all beer, lager beer, ale, pori or other similar fermented liquor, containing one-half of 1 per cent or more of al- cohol by volume, and not morc than 32 per cent of alcohol by weight, which is equivalent to 4 per cent by volume. The Treasury Department estimated that a tax of $5 would pro- duce a revenue of from $125,000,000 to $150,000,000 in the fiscal year end- ing June 30, 1934. These figures were based on a probable consumption of from 25,000,000 to 30.000.000 barrels of 2.75 per cent beer in the States in which its sale would be legal upon the enactment of this bill or in which its sale may reasonably be expected to made legal in the near future. hese States have a total population of 73.- 521,000. The beer provided for bill is of a slightly higher alc content, i pala St on 101 than 2,75 beer. Estimates made brewing interests placed the probable consumption at 40,000,000 barrels with- in the next two years. On this basis the revenue would be in the neighbor- hood of $200,000.000 annually. It must be remembered that where- as in 1914 there were 1,392 breweries in this country producing over 66,000.- 000 barrels, there are today but 164 plants equipped to produce the beverage taxed by this bill. Naturally, it will take some time for the breweries to be able to supply the probable demand. Per capita ¢onsumption of beer in the United States in 1014 was 2062 gal- lons, but at that time its sale was not legal in all States. With respect to the total population of the States where beer was legally sold the per capita| consumption was 24.42 gallons. If this consumption were to obtain in States | where beer can now be sold, or where its sale may be expected, there will be a demand for approximately 60,000,000 barrels. At the rate of $5 a barrel the tax on this amount would produce a revenue of $300,000.000 a year. There is a definite relationship be- tween tax rates and the consumption of beer, and consumption is naturally affected by economic conditions also. Your committee feels that the rate of $5 per barrel fixed by the bill is a rea- | sonable one and that it will be pro- ductive of the greatest amount of revenue. This view is shared by the Treasury Department and by the brew- ing interests. It must be i i | eminent authority, in the | E Majority Report on Collier Bill Points Out Both Cognizance of Altered in Their Platforms. | to be about $3 per barrel, including labor, caps, bottles, cases and so forth A barrel of beer will produce 496 8- ounce glasses at a cost of approxi- mately 1'; cents per glass. The pro- posed Federal tax of $5 per barrel would add 1 cent to-:the cost and | State and local taxes of the same total | still arother cent. This would aliow | the retailer a margin of approximately | 135 cents per glass of the size men- tioned. To meke legal the sale of such fer- mented liquor, the bill amends the | national prohibition ac: as amended |and supplemented, by providing that the ter “liquor,” “intoxicating liquor,” | “beer,” “ale” and “porter” as use that act shall not include beer, ale, wporter of similar fermented liquor con- taining 3.2 per cent or less of alcohol by weight, or 4 per cent of alcohol by volume. Your committee believes that the proposed legislation is not in con- flict with the eighteenth amendment inasmuch as beer of an alcoholic con- tent of 3.2 per cent by weight is. on sald to be non- intoxicating in fact, The present limi- tation of one-half of 1 per cent was never intended to be a line of demarca- ion between liquor which was in fact intoxicating and that which was not, | and the mere fact that the Supreme Court has sustained the power of Congress to fix that maximum per- centage of alcoholic content does not mean thet it does not have the power to fix a higher one. Beer of 3.2 per cent by weight is and always has been considered a light beer; that containing appreciably less than | that percentage of alcohol is much less palatable and probably would not be ! consumed in any great quantity. The { alcohol in 4 per cent beer is so diluted | that it would require considerable effort lon the part of an average person to | drink enough to become drunk. Moreover, in determining what is in | fact intoxicating it would not be proper to use either an inveterate drinker or one easily susceptible to intoxication as | a criterion, Also, it would be assumed | that the beer is to be drunk as it is gen- | erally drunk, that is, in limited quantity | and with food. It is common knowledge that the efiect of the consumption of | alcoholic liquor on an empty stomach is much different than when taken with or after a meal. The presence of solids | in an alcoholic beverage, as in beer, or | the presence of food in the stomach, hold the alcchol back from its rapid passage through the stomach wall into | the blood stream and allow some of it| to be absorbed through the intestines, In this way, the rate of absorption into the blood is slowed down and the alco- | hol is allowed to pass off before there is any large accumulation in the system. | Farm Products Consumed. In the production of beer there is| consumed a econsiderable quantity of | farm products, including malt, rice, corn, hops, etc. | It is estimated that the legalization | of beer of 3.2 per cent of alcohol by weight will give employment to approxi- ! mately 75,000 men in the breweries and | about 225,000 in its retail distribution. In addition, there will be a very large | number of men indirectly employed | | through demands made by the brewing | industry upon other industries. Refer- ence has already been made to the ne- | cessity for certain farm products in the | manufacture of malt beverages. The | expansion of production in the brewing | industry will require an estimated capi- | tal expenditure of $360,000,000 within | the next year for rehabilitation and ‘mndermzatmn of plants, and the pro- vision for retail distribution would re- | quire a large outlay also. The money spent for production and distribution | would give employment to men in many | lines of business. There, would be a de- | | mand for bottles. barrels, hoops, crowns, labels, cases, glassware, refrigerating equipment, machinery, ete. The rail- roads and truck lines would be bene- fitted by increased tonnage. The psy- | chological effect of the stimultion of | these industries upon business in gen- | eral would no doubt be far-reaching, according to a statement made before | your committee by a representative of | the Committee on Industrial Rehabili- tation, three men are put to work in other lines of business for each man | ‘put to work in the capital goods indus- | tries. It is difficult to estimate the amount | of beer now being produced in the home | and in illicit breweries. It goes without | | saying, however, that it is quite large. | This beer is made under unscientific | | d in | ber, Government, to which they added an estimate of income from the so-called allied industries; but they failed to deduct t‘he{e be incident. which -reven! According to an estimate called to the attention of the committee, the con- sumption of alecohal liquors in the United States is approximately but one- third of what it was prior to prohibition. The public health under prohibition has materially improved and, according to the information furnished, reached a remarkable degree in the last fiscal year. “Some urged the committee that boot-leannrx‘,' racketeering, speakeasies, blind tigers, illicit déstilling and brew- ing were the result of prohibition. Terms have been altered to some ex- tent but the operations are similar. “The estimates of re-employment submitted to_ the committee by pro- ponents of the bill varied, but alto- gether were a comparatively small num- , without taking into consideration the loss of labor to persons now work- in other industries whose sales would diminish becsuse the money theretofore expended in purchases of oo 'Ta intoxica mfi'flflwfl” remain the same, sources of revenue legal under the Con- stitutiony should furnish the necessary anount. “Prom the above, as well as from many other factors I shall not take ogcasion to name, it appears that we are facing a wide-open situation in the matter of the dispensation of malt liquors. - Bome things were said during the hearings by the brewing interests concerning the protection of the dry States from the entrance of intoxicants within their borders from wet States, With our motor system of transporta- tion, with tens of thousands of auto- mot?‘len moving continually back and forth, with trucks on the highways carrying !reym brought from many sources and distributed to many desti- nations, with increased traffic in the their products would go to the purchase of malt liquors. “The income of the people generally of the United States will not be in- creased by the sale of malt liquors, of such beverages must be paid for from the family income. Other purchases must be reduced in amount, since incomes cannot be expended twice, “It is alleged that the revenue to be derived from this measure will tend to balance the budget. The brewing interests indicated that at the end of two years they will be manufacturing 40,000,000 barrels of beer of 31 gallons each, If the taste for this beverage is Three Democrats, in recreated, which at $5 a barrel will the air, I.came to the conclusion that a Btate surrounded by wet States or adjacent to one or more wet States would find itself subject to an impos- sible task in mainteining its dry status, “My feeling, after listening to many discussions and the recent hearings, is that the lquor interests are planning, by this measure to secure again the existence of 90 (er cent by volume | of the liquor traffic, the repeal of the | eighteenth amendment, and the return again of the sale of all intoxicating liquors with attendant and acknowl- edged evils. It seems to me that if we adopt the policy contained in this bill return of the saloon is inevitable.” Separate Report, I | | testimeny as a whole and duly consid- Hold Beer Bill Violation of Basic Law! ‘The Democratic minority report on the Collier beér bill, as stated by Repre- sentative Ragon of Arkansas, Morgan G, Sanders of Texas and Jere Cooper of Tennessee, follows: We have heard and read all of the testimony before the Ways and Means Committee relating to the proposed leg- islation on beer. Taking ail of this evasion and that I will well and faith- fully diccharge the duties of the office on which T am about to enter. S5 help me God.” Therefore we cannot under our oath support this legislation. We further submit that the proposed bill s not only in viclation of the Gon stitution of the United Sates but of the Democratic platform which calls for the | “sale of beer and other beverages of | such alcoholic content as is permissible under the Ccn:titution” The above quotation from the platform shows that it was not the intent of those framing | the platform to declare for legislation which would be violative of the Consti- tution. The very clear and definite proof be- fore the Ways and Means Committee during the extended hearings on this | bill shows conclusively that beer of al- | coholic content of 3.2, which means beer | of 4 per cent alcohol by volume, is in- | toxicating in fact and is the same type of beer which was generally produced and sold prior to the Vo'stead act. The sale of such beer because of its aleoholic content is not permiscible under the | Constitution, ering same, we are of the opinion that the proposed bill is violative of the Con- <titution of the United States, which in this regard reads as follows: “After one year from the ratification of this article the manufacture, sale or transpertation of intoxicating liquors within, the importation thereof into, or the exportation thereof from the United States and all territory subject to the jurisdiction thereof for beverage pur- | poses is hereby prohibited.” | As members of Congress we took the | following oath: “T do solemnly swear that I will sup- port and defend the Constitution of the United States against all enemles, for- eign and demestic; that I will bear true faith and allegiance to the same: that T will take this obligation freely, without any mental reservation or purposes of Treadway Objection Based on Ground Revenue Element Was Only Secondary | The minrity views °'¢Rq’"";,"""['{° been . !x::embel; of the lefi and Means adway, Republican, of Massachusetts | Comm , and never in that time has Zn“ lhe‘ ::’olllel? beer bill: such a subterfuge been resorted to, no: “At the opening of the hearing on H. | has & revenue measure been taken up| R. 13312 (the basis for H. R. 13742) I| piecemeal. mqusredhwr:emle‘r the bill :‘: ':{ be con- pan,T%? L;:m]l:xsllnce lxpen‘n the g’“‘f’ sidered by itself or as a a gen- session in an effort to eral m';m.x; bmfi ‘The chairman stn::d | :f;sr:‘ N‘I’éd:enctn rll:‘e\'enuew.tno bglatxg:: g:e taken as ‘& separate | 3 e con! CE ::“'.?,‘;lg il e | best and perhaps the only method o'll “Throughout the hearings it was very | obtaining this revenue was through a apparent that the proponents of the bill | mfinuhcwnu ex}fue tax, and it favor- wanted beer, regardless of the amount | gm y reported such a bill to the House. of revenue it would produce. and that | lde tilggub,aowevsr. did not see fit to the bpponents of the bill did not want | DPr z!h ill, and it was then neces- beer in spite of its revenue passibilities. | SAry for the commitee 1o draft a make- In their arguments the opponents laid | hfl- me‘:m which, with varicus On umatous pecasions T stated to wit- | and the continued depression, the 1932 revenue law has not uce ! an- :‘:,f;';,;::':; afm:m’fiz:b',';,f ’,,‘,*,::mfi“,’;, ticipated revenue. The Secretary ot the the bill had to do with the raising of | Treasury in his report estimates that revenue, &e g\ge‘npue mootgle flsclal year 1934 will “The proponents of the bill estimated ,949,000.000, including $329.000,- that it would produce about $200,000,- w‘%lo'rflen“&?%eréu. The ap_;;gs. 20p.of revenue -nnm&t }rhe °"§1°“ :3:‘ | 000,000 laxtlu'il\'e of sta?\?tgr?‘ dsem. Te- :::':u";nd ?noctmlh“?onl; ,g&i“,fic !lesu- tirement. ~Accordingly, the present es- mony on the revenue feature was given | timated deficit for 1934 will be $307.- 41 2 by the Secretary of the Treasury, who ( 000,000, and this figure will probably 125,000,000 be increased by the failure of certain ‘?fi%"fim‘é“ofi“fi‘.fir “he Hetat yea'rolésox foreign obligations to be paid in full. "’!'he’wn'ya and Means Committee is | In view of this situation, I feel that | Purposes.” approved February 14, 1917 and unsanitary conditions, and the ai- | coholic content cannot be controlled s |it can in the high-class breweries with | proper refrigerating apparatus. Boot- leg beer is offered for sale at prices ranging from $40 to $60 a barrel, and | the Federal Government s not collect~ ing a cent of tax from this illegal prod- uct. The legalization of good, whole- | some, palatable, non-intoxicating beer will go far toward stamping out this | illegal traffic by making it unprofitable | in competition with good tax-paid beer hout placing an unreasonable burden upon the sale of non-intoxicating beer. Barrel of Beer $6.26 at Cost. Representatives of the brewery in- dustry informed the committee that they could produce a barrel of beer the revenue-raising committee of the House. It has jurisdiction of “such measures as purport to raise revenue and of the bonded debt of the United Btates.” Obviously, the reference of the beer bill to the Ways and Means Com- mittee was a subterfuge to secure a favorable report from some committee, as it had previously been demonstrated that such a report could not be obtained from the Judiciary Committee, which has jurisdiction over prohibition meas- it is the duty of the Ways and Means Committee not to confine itself to ad- vocating & beer bill, which would raise only a portion of the funds needed by the Government, but to devote its ener- gies and attention to drafting a meas- ure which will produce sufficient revenue so that the new admin-| istration may start with an evenly bal- anced slate. “The method of procedure is perfect- ly simple. The so-called manufacturers’ exeise tax which, with certain amend- ‘The supporters of | importat and deliver it at the point of con- sumption for approximately $6,26, ex- clusive of Federal, State and local taxes. The expense of hottling is said at one-third the price, and will enable | the Federal Government to collect a | ! large amount of revenue which it now | loses. Minority Report of Three Republicans ‘ Questions Constitutionality of Bill The Republican minority 'report on | the Collier beer bill, as stated by Repre- sentatives Hawley of Oregon, Timber- lake of Colorado and Crowther of New York, follows: At the beginning of this session nl‘ Congress, in company with all my col- | lcagues, I stood on the floor of the | House and took the oath to support the | Constitution of the United States, as required by the article 6 of the Con- stitution. T quote from that cath: - “Ido solemnly swear that I will sup- | port and defend the Constitution of | the United States * * * bear true faith | and allégiance to the same * * * with- out any mental reservation or purpose of evasion.” X Article 18 of the amendments pro- es that— . “The manufacture, sale or transpor- tation of intoxicating liquors within, the tion thereof into, or the expor- tation thereof from, the United States | and all Territories subject to the juris- diction thereof for beverage purposes is herchy prohibited.” I listened: with -careful attention to the eyidence submitted to the committee during the hearings preceding the re- ort of the Fcnding bill, H. R. 13742. | y -observation covers a period prior to gmhlhluop* ns well as under pro- hipitian. 1 am convinced by the evi- dence -submitted at the hearing and by obsesyation and evidence extznding over a perldd ‘of a lifetime that beer and other liquors described in the bill arc intexicating. © They were intoxicating prior to yzghibmon. A legislative declaration the contrary does not overcome that fact, and if I were to suj this legislation it would require & “mental reservation” on my part and a* of evasion” of the eighteenth al;tn of amendment to the Constitu- On the part of the Federal Govern- ment, this bill proposes that the country enter upon a new era in the manufac- ture, distribution, sale, and consump- tion’of intoxicants. It provides for the re-establishment of 90 per cent in vol- ume of the liquor traffic on the basis of the amount prior to prohibition. Brewing Interests’ Acti The brewing interests, realizing the influence that the great fundamental law of the land and the strength of the purpose of the people for its observance, attempted ta avert opposition to this bill constant of . the al- legation that malt beverages of the strength proposed were not intoxicating | In fact, as the basis and. justifi their sgle. i j‘* epir of | The bill orjgina pfid that the aleoholie. u(:al'l'ib‘eiflt usympl:‘lqd 2.75 A per cent by weight, or 3.4375 iper cent volume. - The majority of t! W s increased: the alcoholic - cantent.- to- 8.2 per cent’by weight, or 4 jper cent by volume, on the ground that this woyld increase the atractive of the bev- erage and incregse its sale.! The question of influenge of alcohol on the human system has 4n added im- portance, owing to the development by National, State and local funds of grest highways and éther' improved roads, over which are operated some 26,000,000 motor vehicles. An individual may not visibly intoxicated. to-the extent that he may be identified as'a *drunk,” but his museular reactions and mentél ac- tivities may be so depres that .he is not able to nd -as kly as when normal. ' Detailed evidence! of this fact was submited to the committee. The lives and property of people who use the highways are subjected to constant risk and the traffic problem is one of the most important in the United States, and anything that will inerease its danger is against the public interests. During the hearings, the brewing inter- ests indicated their desire fo secure a widespread distribution and opg)mmlty of sale for beer and other beverages provided in the bill. On the allegation that they were not intoxicating, it was suggested that beer be sold at soda fountains, drug stores, cafeterias, hotels, restaurants, clubs, and also at wayside eating places, fllling stations, and other places along the highways, or, to it |in other words, it should be sold as freely as soda water, ginger ale, and other soft drinks. The wayside sales would become a direct and continuing. menace to vehicular traffic. The sale in drug stores, soda fountains, and other places where soft drinks are dispensed to the multitude, would bring beer within the reach of everyone, including the very young, and be a constant temptation to them to this toxic age. That and habit-forming' which might not intoxichte people of |’ mature years will certaiply intoxicate the young. The motion fo restrict the sale to clubs, restaurants, hotels, etc. "%t It should be argued that the fastter of distribution can be co) the States, let me call your ammm to the fact that this bill expresses the of the Federal % matter and that the ref of many the States to participate in enforcement ures. “Personally, T recognize that real beer, say, of 3.2 per cent of alcohol by weight, ments, was agreed upon by the com- mittee during the last session can be used as the basis of a measure to Te- | manufgetured legally and under sani- tary tions, is far preferable to| hootch §nd homebrew. For this reason I can comsistently vote for the pending meagure, but as & member of the Ways and Means Col , dealing with the revenues of the country, I could not vote to re) a measure in which the revenue element was secondary to the y-uzing of the manufacture and sale 3.2 per cent beer. For 16 years I have - store a proper balance between ex- penditures and receipts. The tax pro- posed in the bill to legalize beer, if the House so voted, could be one of the items of such a measure. “If the committee and the House will adopt such a program, we will be performi our duty, acting openly, securing the necessary revenue, and starting the new administration with- out financial embarrassment.” BISHOP REAFFIRMS STAND ON DRY LAW M. E. Session Urges Congress Act * to Prevent Return of Saloon. By the Associated Press. 8 RT, La., December 17— The College of Bishops of the Methodist Episcopal Church South; in sestion here today reaffirmed its stand for prohibi- tion and urged Ccngress take steps to prevent the return of the saloon and to protect dry territory. An open statement, issued by the col- lege to the president and for the records of Congress, re-emphasized the warning against the salcon's return expressed /by the last general conference of the church at Dallas, Tex,. and declared that “we would emphasize at this time, when the effort is being made to stam- pede and tq overwhelm the friends of prohibition, t there has been mno change in the attitide of our church.” The bishops in thelr tatement as- serted that * no mandate from the people to vote for a resolution to repeal the eighteenth amendment un- til and unless it presents to the States for action a substitute amendment, which will effectively prevent the return of the saloon lectively protect dry territory. 8 matter of fact, the SENATORS PREPARE TO ACT ON REPEAL Wet Question Probably Will Fol- low Bank Bill Due to Come Up Jan. 15. By the Associated Press. Senate leaders formulated plans yes- terday for consideration of prohibition Tepeal shortly after the Christmas re- cess, provided the Senate Judiciary Committee, now working on a repeal resolution, is prepared to report by that time. Senator McNary, assistant Republican leader, said the repeal question prob- ably would be next on the Senate pro- gram after’ disposition of the Glass banking bill scheduled to come up Jan- uary 5. Meanwhile, Chairman Blaine of the Judiciary Subcommittee framing the resolution, said that group would speed its work. He sald he was not sure, however, when the committee would be ready to report. It already has agreed tentatively on the wording of a clause to prevent liquor from. heing ship into dry States, but has not how the resolution should be submitted to the States, or whether an effort should-be \ people did not in the last election voté | Senate so much on the tion of and beer 83 on breadt e .. Divorces Popular Composer. CHICAGO, December 17 (#).—Mrs. Janet Miller Fiorito won an uncontested d.ll::rc:n today from Ted Florito, musl- F4 composer, whose orchestra been playing a San Francisco B AR e Was |- ‘mony, Among Florito's Day, SRt were for Measure Reported by House Ways and Means Committee Specifies Wide Range of Restrictions. ‘The text of the revised beer-revenue % | b, as reported Priday by the House Ways and Means Committee, follows: A BILL To provide revenue by the taxation of certain non-intoxicating liquors, and for other purposes. Be it enacted by the Senate and House of Representdtives of the United States of America in Congress assembled, that (a) there shall be levied and collected on all beer, lager beer, ale, porter and other similar fermented liquor, contain- ing one-half of 1 per centum or more by volume and not more than 3.2 per cen- tum of alcohol by weight, brewed or manufactured, and after the effective date of this act, sold, or removed for consumption or sale, within the United States, by whatever name such liquors may be called, in lieu of the internal revenue tax imposed thereon by section 608 of the revenue act of 1918 (U. 8. C., Title 26, sec. 506) a tax of $5 for every barrel containing not more than 31 gal- lons and at a like rate for any other quantity or for the fractional part of a barrel authorized and defined by law, to be collected under the provisions of ex- isting law. Nothing in this section shall in any manner affect the internal rev- enue tax on beer, lager beer, ale, porter or other similar fermented liquor, con- taining more than-3.2 per centum of al- cohol by weight, or less than one-half of 1 per centum of alcohol by volume. (b) Paragraph “first” of section 3244 of the Revised Statutes (U. 8. C., Title 25, sec. 202) is amended to read as follow “First. Brewers shall pay $1,000/ Every person who manufactures fer-| mented liquors of any name or descrip- tion for sale from malt. wholly or in part, or from any substitute therefol shall be deemed a brewer.” Provisions of Section 2. Section 2. Whenever used in the Na- ticnal Prohibition act, as led and | supplemented, the following grms shall, | so far as relating to beer, algjsporter or similar fermented liquor, have the fol- lowing meaning: (1) The term *one- half of 1 per centum or more of alc hol by volume” shall mean “more t}‘)‘ln 3.2 per centum of alcohol by weight. (2) The term “less than ope-half of 1 per centum of eleohol by volume” shall mean “not more than 3.2 per centum of alcohol by weight.” | (3) The term “more than one-half of 1 per centum of alcohcl by volume” shall mean “more than 3.2 per centum | of alcohol by weight.” | (4) The term “below such one-half of 1 per centum” and the term" below uch one-half of 1 per centum of alco- hol” shall mean “to 3.2 per centum or | less of alcohol by weight.” Section tion 1 of Title II of the National Pro- | hibition act, as amended and supple- | mented (relating to the definition of liguor and intoxicating liquor) (U. 8. | Title 2 out “and is otherwize denominated than | as beer, ale or porter,” and by striking cyt the period ¢t the end thereof and inserting in lieu thereof a colon and the | following: n 3 terms ‘liquor,” intoxicating ‘liquor,’ ‘beer,” | ‘ale, and ‘porter, as uved in this act shall not include beer, ale. porter or | similar fermented liquor, ccntaining 32‘ per centum or less of alcohol by weight, | shall be Ingrluud for not’ more than othing in this sectfon shall one year. be construed as making -lawful the tion of any shipment or tr::cl;pmutlon fon 5 of liquor the shipment or of which is orohibited b the act entitled “An Act Makir: Ag— gmpmtmm for the Service of the ost Office Department for the Piscal Year Ending June 30, 1918, and for other Purposes,” approved March 3, 1917, as amended and supplemented (U. 8 C, sup. V, title 18, section 341, title 27, section 123). Section 8 Any offense committed, or any right accrued, or any penalty or obligation incurred, or any seizure for forfeiture made, prior to the effective | date of this act, under the provisions of the National Prohibition Act, as amended and supplemented, or any per- mit or regulation issued thereunder may be prosecuted or enforced in the same manner and with the same effect as if this act had not been enacted. Section 9. This act shall take effect on the expiration of 30 days after the date of its enactment, except that per- mits referred to under section 4 may be issued at any time after the date of enactment. Section 10. If any provision of this act, or the application thereof to any person or circumstances, is held invalid, the remainder of the act and the ap- plicatlon of such provision to other persons or circumstances, shall not be CHCAGOAN WAMED DRY' PARTY CHIEF Blake Elected to Succeed Dr. Colvin as Chairman of Committee. By the Associated Press Edward E. Blake of Chicago yester- day was elected chairman of the National Committee of the Prohibition National Committee of the Prohibition who declined to stand for re-election. |* The group adopted a resolution con- | gratulating Willlam D. Upshaw and | Prank S. Regan, party standard bearers (A) Subdivision (1) of Sec- | in the recent election. The resolution | said among other things: “Under tremendous handicap of lack of time and a lack of funds they prohibition before the Nation, in face of the surrender of both old parties on this great national question and they ' “Provided further, That the | deserve not only our gratitude but the | dicated ths gratitude of all who oppose the repeal of the aighteenth amendment.” Editors Commended. The resolution commended Mrs. BEER IS HELD RUN - TOLEGAL INDUSTRY |Business Men’s Prohibition Foundation Sends Letter to Official Washington. By the Associated Press. CHICAGO, December 17.—The Amere ican Business Men's Prohibition Foune dation said today in an open letter to official Washington that legalized beer would bring “ruinous competition to | many legitimate industries.” “Return of the legalized liquor traf- fic, qf which the beer trade was 90 per cent,” the letter said. “would directly and destructively affect many legiti- mate industries “Aided Other Businesses.” “Some of those industries have grown remarkably since enactment of the eighteenth amendment and, contrary to the effect of the beer traffic, have through their growth permanently benefited countless other legitimate businesses.” Copies of the letter were sent to | President Hoover, Vice President Curtig and all members of Congress. It was signed by Richard H. Scott, president of the foundaticn. _ Scott said beer always has been “a direct competitor with legitimate busi- ness for the people's current income, and wherever the trade was legalized lecal industry always suffered in the long run from disorder, disease and destitution.” He charged that assertions by anti- prohibitionists that the beer which they wish legalized would be non-intoxicate ing were “deliberate misstatement: “Would Not Form Habits.” “The brewer well knows” he said, “that non-intoxicating beer would necese. sarily have to be a beverage so dee as to lack habit-forming I were not habit-forming they would never expect to coin billions out of it, and if it were not habit-forming would be no objection to it now jor at any other time. “Everything depends, so far as the brewers’ expectations go, upon legal sanction to sell a beverage every drigk | of which weuld automatically create L | thirst for more.” 34 BILLIONS HELD DRY COST T U. S. i ol. Reeves, Director of Crusaders, Reviews 12 Years' | Record. | 7. Sec. 4) is amended by striking | ably lifted the standard of 100 per cent | BY the Associated Press. CHICAGO, December 17.—Col. Ira L. Reeves, director of the Crusaders, ad- vocates of prohibition repeal, today ald a survey by his organization in- t prohibition during the ast 12 years cost the United States about $34,000,000,000. | _ The figures were arrived at, Col. | Reeves said. after research by himself |and William T. Biesel, statistical expert and such beer, ale, porter or similar fer- | Jesse W. Nicholson, editor of the Wom- | °f, the Crusaders. mented liquor may be sold in or from | an Voter; Miss Ethel Hubler, editor of | bottles, casks, barrels, kegs or other|the National Voice; Alfred B. Taynton, | ccAtziners, but such bottles, casks, bar- | rels, kegs or other containers shall be | labeled and sealed as the Commissioner rescribe.” | the may by regulation ; (b) The term “intoxicating Hguor,” @s used in the act entitled “An Act to Prohibit the Sale, Manufacture and Im- portation of Intoxicating Liquors in| the Territory of Hawaii during the| Period of the War, Except as Herein- | after Provided.” approved May 23, 1918 U. S. C. title 48, section 520), and the term “intoxicating drink.” as used in section 2 of the act entitled “An/ Act to Provide a Civil Government for | Porto Rico. and for Other ,” | approved March 2, 1017, shall not be| construed to include beer, ale, porter or similar fermented liquor, contgining 3.2 per centum or less of alcohol By weight; | and the provisions of the act entitled | “An Act tb Prohibit the Manufacture or Eale of Alcoholic Liquors in the Territory of Alaska, and for Other (U. 8. C.. title 48, sections 261 to 291, both inclusive), shall not be construed | to apply to beer, ale, porter or similar fermented liquor, containing 3.2 per centum or less of alcohol by weight. Manufacturer a Brewer. Section 4. The manufacturer of any beer, ale, porter, or similar fermented liquor containing one-half of 1 per centum or more of alcohol by volume, shall for the purpese of the internal revenue laws be considered a brewer. Before engaging in business he shall, besides qualifying as a brewer under the internal revenue laws, also secure a permit under the national prohibition act, as amended and supplemented (in- cluding the amendments made by this act), authorizing him to engage in such manufacture, which permit shall be ob- tained in the same manner as a permit to manufacture intoxicating liquor, and be subject to all the provisions of law relating to such a rermlt. No permit shall be issued for the manufacture of such fermented liquor in any State, Territory or the District of Columbia, or political subdivision of any State or Territory, if such manufacture is pro- hibited by the law thereof. Whoever engages in such manufacture without such permit, or in violation of such permit, shall be subject to the penalties provided by law in the case of similar violations of the national prohibition act, as amended and supplemented. Section 5. Nothing in sections 1 or 4 of this act shall be construed as in any manner authorizing or making lawful the manufacture of any beer, ale, porter or similar fermented liquor, which at the time of sale or removal for con- sumption or sale contains more than 3.2 per centum of alcoho] by weight. Bection 6. In order that beer, ale, porter and similar fermented lique containing 3.2 Eer centum or less of alcohol by weight, may be divested of their interstate character in certain cases, the shipment or transportation thereof in any manner or by any means Whatsoever, from one State, '!'arrlwrnur District of the United States, or place non-contiguous to but subject to the jurisdiction thereof, or from any for- eign country, into any State, Territory or District of the United States, or place non-contiguous to but subject to the jurisdiction thereof, which fermented liquor is intended, by any person ine terested therein, to be received, pos- sessed, sold or in any manner either in original package or other- wise, in violation of any law grf any ¥ non-cont us to but subject to u:'emi is hereby prohibited. N in this section shall be construed as making lawful the shipment or tion of liquor the shipment of trans. pflr:lfim of which is prohibited act of March 1, 1913, entitled . givesting intoxioating liquors character in certain (U, 8. C, title 27, section 122).” Transportation Restriction. Section_ 1. chases, or lhn%:r ted per bexmlm or less lndm] b’u“ to tfig:{flficd 3 for scientific, Tedicinial oF mechanical State, Territory or lumbia, Territory editor of Political Action; Dr. Gerald B. Winrod, editor of the Defender Magazines; Charles E. Stokes, editor of National Defender; Dr. B. E. P. Prugh, editor of the Indes; George D. Harger, editor of the Prohibition News- Letter; Prescott Gillilan, editor of the Christian State and other prohibition papers; Clinton N. Howard and Canon William Sheafe Chase of the Inter- national Reform Federation and ti National United Committee of Law En- forcement. Address to Public. In a statement entitled “An Address to the Public,” the committee said: “We hereby call the attention of the C"t American people to the fact that since | C: The report further stated that in 13 years, 2,089 citizens met deh and 513 | prohibition agents and other aides were | killed as a result of enforcement at- tempts. The report based its mortality | list, Reeves said, on press dispatches. | As a basis for his figures. Reeves said cfficial records were utilized to | show that congressional appropriations | for enforcement for the period reached $132958,530 and from other official | tables, he said, the following additional figures were taken by States nt (R yrs.) $5.555,850 of property 186,867,322 128,000,000 111,103,870 152,503,464 in Jail | Cost. lator. the cause of national prohibition has || been deserted by the Democratic and | Republican parties, the necessity for the Prohibition party is more impera- tive than ever and if there were no such organization to fight the return of the Jegalized liquor traffic we would be forced by every impulse of duty to our country and our God to form such an organization now. “Therefore, standing upon more than 60 years of our party's tenacious loyalty to the cause of national morality and sobriety, we summon to our comradeship all sincere drys in America who believe with us that the governmental protec- tion of a business that prospers on the downfall of its pwn patrons, is nothing less than a crime against humanity.” —— Plan Benefit Card Party. UPPER MARLBORO, Md., December 17 (Special) —A card party for the benefit of St. Mary's School will be T for pad- |, locked property |Loss in Federal liiquor revenue Loss cou 11.988.000.000 6.540,620,000 was licu pro Total 3 i The report said that 1085744 per= sons had arrested. 1554,004 | illicit. ferm s were confiscated, 132.269 stills d. 62518 automobiles | confiscated, and 1.502 motor boats and launches taken D. of A. Party Tomorrow. CHERRYDALE, Va. December 17T | (Special) —Cherrvdale Council, No. 11, { Daughters of America, has started | plans for a benefit party to be held held in Gibbons' Hall here the evening |at the home of Mrs. El of December 23. Edgewcod avenue, Mon Character Security for Loans When anyone thinks of borrowing money, he not oni’y tonsiders the rate which he will be c‘lugfl! and the manner of pay- ment of the ols]isadon —he is concerned with the type of security which he can put up in order to obtain the loan. Under the Morris Plan no plxysicnl propesty is required. The Morris Plan has made it pouib]c for & persen of good character, steadily em| yeJ, to obtain money tlnousll en- dorsement, that is, the signing of a prom- issory note, by two of his friends. ‘We loan on the reputation and cliar- acter and earning ability of the borrowee and his two comakers. Morris Plan Bank * Under Supervision U. S, Treasury Mlu Hundreds no'l'lwwdlv ve, on