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The American Issue
Westerville, Delaware County, Ohio
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Lincoln C. Andrews, assistant Secretary of the Treasury for prohibition enforcement, asked the House Ways and Means Committee on November 2 to include a 1.5 cent per gallon tax on cereal beverages in the new revenue bill, granting inspection powers over near-beer breweries to curb diversion of high-alcohol beer. He also suggested reducing the tax on pure alcohol and imposing a levy on denatured alcohol.
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Prohibition Chief Asks House Ways and Means Committee to Impose Tax on Near-Beer and Give Power to Inspect Breweries as Means to Stopping Leaks in Breweries Manufacturing Near-Beer
Lincoln C. Andrews, assistant Secretary of the Treasury in charge of prohibition enforcement, according to a Washington Associated Press dispatch of November 2, has asked the House Ways and Means Committee to include in the new revenue bill a tax of a cent and a half a gallon on cereal beverages, which would give the government power to inspect breweries manufacturing near-beer.
Under the present regulations prohibition officials do not have the power to inspect breweries manufacturing near-beer. In the manufacture of near-beer breweries first make real beer of high alcoholic content and then dealcoholize it. It is comparatively easy for breweries to put their product on the market without dealcoholizing it.
Mr. Andrews believes that with power to inspect those plants permitted to make near-beer, the government will prevent for the most part the cheating breweries from putting their high-powered product on the market. The prohibition chief suggested as a further means of aiding enforcement a reduction of the tax of $2.20 a proof gallon on pure alcohol and the imposition of a levy of one cent a gallon on denatured alcohol.
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Domestic News Details
Primary Location
Washington
Event Date
November 2
Key Persons
Outcome
proposal to prevent breweries from selling undealtcoholized high-alcohol beer through inspections and tax adjustments.
Event Details
Lincoln C. Andrews asked the House Ways and Means Committee to impose a 1.5 cent per gallon tax on cereal beverages to enable government inspection of near-beer breweries, addressing the lack of current inspection powers and ease of diverting real beer to market. He also proposed reducing the tax on pure alcohol and adding a tax on denatured alcohol to aid enforcement.