of the cask. Twenty per cent of alcohol is a safe margin which will permit the importation of fruit juices without danger of fermentation, and the rate of duty to be fixed upon fruit juices and fruit syrups should, therefore, provide for such goods containing 20 per cent of alcohol or less, with an additional rate of duty as usual for the excess over 20 per cent of alcohol.

PAR. 311. No change suggested.

PAR. 312. All mineral waters and all imitations of natural mineral waters, and all artificial waters in green or colored bottles, or in jugs, if containing more than a pint and not more than a quart, 20 cents per dozen; if containing more than a half pint and not more than a pínt, 15 cents per dozen; if containing not more than a half pint, 10 cents per dozen. In each of the foregoing cases no separate or additional duty shall be levied on the bottles or jugs.

If imported otherwise than in green or colored glass bottles or jugs, or in such bottles or jugs containing more than a quart, 8 cents per gallon.

SCHEDULE H, paragraph 812).

No person, firm, or corporation not holding a United States liquor license shall be permitted to import wines, spirits, or alcohol. No importation of wines, spirits, or alcohol shall be made in quantities less than three cases of full bottles or five gallons in bulk. Bottling in bond under proper Government supervision of wines, or spirits for exportation only, with reasonable allowance for lees and loss, may be allowed under suitable regulations to be established by the Secretary of the Treasury. The Secretary of the Treasury is hereby authorized to make and issue official stamps which may be purchased and affixed abroad covering the cap of every bottle of wine, Vermouth or spirits intended for importation into this country, and certifying as to maker, age, name, and quality or strength of the contents in general form or manner, similar to the stamp affixed to bottled in bond spirits, and the Secretary of the Treasury is hereby directed to formulate such regulations as may be necessary to control the sale and use of the said stamps by the proper parties only upon imported wines and spirits, the same to be without expense to the Government. Imported wines, spirits, ales, and beers may be sold in bond to foreign vessels for consumption upon the high seas only.

BRIEF OF THE IRISH INDUSTRIAL ASSOCIATION OF NEW YORK CITY, N. Y., RELATIVE TO THE REDUCTION OF DUTY ON WINES, SPIRITS, GINS, ALES, AND PORTER.

The COMMITTEE ON WAYS AND MEANS,

Washington, D. C.

NEW YORK CITY, January 30, 1913.

GENTLEMEN: The Irish Industrial Association of New York City, a commercial body of American citizens, representing an important interest as importers and dealers in foreign and domestic wines, spirits, gins, ales, porter, etc., in the United States of America, respectfully submits to the consideration of this honorable committee for adoption the recommendation respecting duties on said articles coming under Schedule H (paragraphs 300, 302, 303, 304, 308, and 309).

The consumers of the aforesaid articles include citizens of the whole United States, and therefore the freight charges which must be paid to transport such merchandise after it is laid down in New York City should be taken into consideration in assessing a duty on such imported articles.

It is a known fact that such articles when taken moderately perform the functions of medicines and tonics, and that the additional increase of duty imposed upon them and the additional and burdensome Treasury regulations which add to the cost f. o. b. port of New York has put the same beyond the reach of the laboring class of American people, and it does not seem just to deprive them of a necessity by the means of a high tariff which substantially prohibits their importation.

The duty on brandy and other spirits manufactured or distilled from grain or other materials, not specially provided for in the act of 1897 was $2.25 per proof gallon; act of 1909, $2.60 per proof gallon.

Duty on compounds or preparations of which distilled spirits are a component part of chief value, not specially provided for: Act of 1897, $2.25 per proof gallon; act of 1909, $2.60 per proof gallon.

Duty on cordials, liqueurs, arrack, absinthe, kirschwasser, ratafia, and other spirituous beverages or bitters containing spirits, and not specially provided for: Act of 1897, $2.25 per proof gallon; act of 1909, $2.60 per proof gallon.

PARAGRAPH 300-BRANDY.

Duty on ale, porter, and beer in bottles or in jugs: Act of 1897, 40 cents per gallon; act of 1909, 45 cents per gallon. In other coverings: Act of 1897, 20 cents per gallon; act of 1909, 23 cents per gallon.

Duty on stout in bottles or jugs: Act of 1909, 45 cents per gallon. In other coverings: 23 cents per gallon.

Duty on malt extract (fluid) in bottles or jugs: Act of 1897, 40 cents per gallon; act of 1909, 45 cents per gallon. In casks: Act of 1897, 20 cents per gallon; act of 1909, 23 cents per gallon. Solid or condensed: Act of 1897, 40 per cent; act of 1909, 45 per cent.

We submit to this honorable committee that the above duties are excessive and prohibitory and tend to prohibit the importation of same, thus depriving the importers and consumers of a necessity for the maintenance of life and business and the United States Treasury of the custom duties.

Respectfully submitted.

PARAGRAPH 300.

Brandy and other spirits manufactured or distilled from grain or other materials, and not specially provided for in this section, two dollars and sixty cents per proof gallon.

BRANDY.

BRIEF OF SIR ROBERT BURNETT & CO., DISTILLERY,
NEW YORK, N. Y.

The WAYS AND MEANS COMMITTEE,

House of Representatives, Washington, D. C.:

NEW YORK.

Permit us to refer to a brief submitted to you by the Wine & Spirit Traders' Society, Francis E. Hamilton, counsel.

The brief has to do with Schedule H of the tariff act.

Our object is to engage your attention particularly to the argument contained in this brief on paragraph 300, Schedule H.

We respectfully submit for your consideration:

(1) That the decrease in imported brandies and other spirits from 1910 to 1912 is a healthy condition, arguing protection for American manufactured spirits.

(2) That to the $2.60 duty now assessed upon imported spirits is due the fact that although imports decreased 14 per cent from 1910 to 1912, the United States revenue on these same imports decreased only 2 per cent.

(3) That should the importation of brandies and other imported spirits decrease in 1913 to such an extent as to decrease the duty on same by $1,000,000, the increase in American-made spirits paying $1.10 internal-revenue tax would more than offset the deficit.

(4) That the intent of the tariff must be to protect American industries as well as to provide revenue; that imported brandies and spirits are luxuries; that luxuries must bear a high tariff; that as good, if not better, brandies and spirits are now manufactured in the United States as anywhere in the world.

(5) That foreign spirits must not be permitted to compete with American-made spirits by a reduction in tariff.

(6) That when on account of the tariff the importation of foreign spirits declines from year to year until it ceases, the American people will have been well served by their tariff and brought about a reversal of conditions, viz: (a) Recognition of American-made spirits as best. (b) An export business in American-made spirits. (7) That the reason for the decrease in imported spirits does not lie in the increased tariff rate, but rather in the fact that the American people recognize the quality of their home product.

(8) That no matter how high the tariff on imported spirits, with the quality recognized as better, the consumption would increase; that imported spirits are luxuries, and if desired by the public would continue to increase in consumption.

(9) That statistics will show that with the normal increase in population there has been a corresponding increase in the consumption of wines and liquors, but which

PARAGRAPH 300-BRANDY.

increase has been enjoyed by the American-made wines and liquors rather than the imported.

(10) That if the rate under the former tariff is reestablished there is grave reason to doubt that the revenue to the Government will in the future continue to increase. (11, That in the future the importation of wines and liquors will continue to decrease and, consequently, the returns in duty decrease; that the future will show a great increase in the consumption of American-made wines and liquors and a consequent increase in internal revenue.

(12) That the maintaining of the present rate of duty on imported spirits means the continued growth in the consumption of American-made wines and liquors and, therefore, a factor in decreasing the "high cost of living," or (as sometimes defined) "the cost of high life."

(13) That this firm is itself a positive example of the recognition by the American consumer and his leaning toward American-made wines and liquors, as is evident from the following:

In the fall of 1910 we started to manufacture in New York the same gin that had up to that time been made only in London and had been imported to the United States from London only, for 60 or 70 years.

As a result of our maintaining the same quality when made in New York as when made in London, the sale of this gin in the first 12 months increased over 100 per cent, in the second 12 months an increase of 50 per cent and is still increasing and growing in favor with the American public.

Of course, when we started manufacturing our gin in New York we saved the duty now assessed on imported spirits and therefore showed the consumer a reduction in the cost to him on gin of the same identical quality he had been purchasing in the past.

(14) Our own firm is not the only example of recognition by the American consumer of quality in wines and liquors when made at home.

We respectfully submit that the present duty on imported spirits must be maintained to insure revenue and to increase the consumption of American-made wines and liquors and to reduce the cost of wines and liquors to the American public. Respectfully.

PARAGRAPH 301.

SIR ROBT. BURNETT & Co., By SAM J. SNYDER, President.

Each and every gauge or wine gallon of measurement shall be counted as at least one proof gallon; and the standard for determining the proof of brandy and other spirits or liquors of any kind imported shall be the same as that which is defined in the laws relating to internal revenue: Provided, That it shall be lawful for the Secretary of the Treasury, in his discretion, to authorize the ascertainment of the proof of wines, cordials, or other liquors, by distillation or otherwise, in cases where it is impracticable to ascertain such proof by the means prescribed by existing law or regulations: And provided further, That any brandy or other spirituous or distilled liquors imported in any sized cask, bottle, jug, or other packages, of or from any country, dependency, or province under whose laws similar-sized casks, bottles, jugs, or other packages of distilled spirits, wine, or other beverage put up or filled in the United States are denied entrance into such country, dependency, or province, shall be forfeited to the United States; and any brandy or other spirituous or distilled liquor imported in a cask of less capacity than ten gallons from any country shall be forfeited to the United States. PARAGRAPH 302.

On all compounds or preparations of which distilled spirits are a component part of chief value there shall be levied a duty not less than that imposed upon distilled spirits.

PARAGRAPH 303.

Cordials, liqueurs, arrack, absinthe, kirschwasser, ratafia, and other spirituous beverages or bitters of all kinds, containing spirits, and not specially provided for in this section, two dollars and sixty cents per proof gallon.

PARAGRAPHS 306-307-WINES.

PARAGRAPH 304.

No lower rate or amount of duty shall be levied, collected, and paid on brandy, spirits, and other spirituous beverages than that fixed by law for the description of first proof; but it shall be increased in proportion for any greater strength than the strength of first proof, and all imitations of brandy or spirits or wines imported by any means whatever shall be subject to the highest rate of duty provided for the genuine articles respectively intended to be represented, and in no case less than one dollar and seventy-five cents per gallon. PARAGRAPH 305.

Bay rum or bay water, whether distilled or compounded, of first proof, and in proportion for any greater strength than first proof, one dollar and seventy-five cents per gallon.

PARAGRAPH 306.

Champagne and all other sparkling wines, in bottles containing each not more than one quart and more than one pint, nine dollars and sixty cents per dozen; containing not more than one pint each and more than one-half pint, four dollars and eighty cents per dozen; containing one-half pint each or less, two dollars and forty cents per dozen; in bottles or other vessels containing more than one quart each, in addition to nine dollars and sixty cents per dozen bottles, on the quantity in excess of one quart, at the rate of three dollars per gallon; but no separate or additional duty shall be levied on the bottles.

PA AGRAPH 307.

Still wines, including ginger wine or ginger cordial, vermuth, and rice wine or sake, and similar beverages not specially provided for in this section, in casks or packages other than bottles or jugs, if containing fourteen per centum or less of absolute alcohol, forty-five cents per gallon; if containing more than fourteen per centum of absolute alcohol, sixty cents per gallon. In bottles or jugs, per case of one dozen bottles or jugs, containing each not more than one quart and more than one pint, or twenty-four bottles or jugs containing each not more than one pint, one dollar and eighty-five cents per case; and any excess beyond these quantities found in such bottles or jugs shall be subject to a duty of six cents per pint or fractional part thereof, but no separate or additional duty shall be assessed on the bottles or jugs: Provided, That any wines, ginger cordial, or vermuth imported, containing more than twenty-four per centum of alcohol shall be classed as spirits and pay duty accordingly: And provided further, That there shall be no constructive or other allowance for breakage, leakage, or damage on wines, liquors, cordials, or distilled spirits. Wines, cordials, brandy, and other spirituous liquors, including bitters of all kinds, and bay rum or bay water, imported in bottles or jugs, shall be packed in packages containing not less than one dozen bottles or jugs in each package, or duty shall be paid as if such package contained at least one dozen bottles or jugs, and in addition thereto, duty shall be collected on the bottles or jugs at the rates which would be chargeable thereon if imported empty. The percentage of alcohol in wines and fruit juices shall be determined in such manner as the Secretary of the Treasury shall by regulation prescribe.

WINES.

TESTIMONY OF LEE J. VANCE, 302 BROADWAY, NEW YORK CITY, SECRETARY AMERICAN WINE GROWERS' ASSOCIATION.

The witness was duly sworn by the chairman.

Mr. VANCE. I might briefly say that I represent the American Wine Growers' Association, an organization composed of the largest and leading grape and wine growers of the United States. I might add that I also am interested in another schedule, as the publisher of a trade paper, and that is paragraph 312 devoted to mineral waters. I will make a few remarks on that.

PARAGRAPHS 306-307-WINES.

Briefly stated, I assume that the brief of Mr. Hamilton, counsel for the importers, asks for a reduction of duties on wines. I have not had the pleasure of seeing the brief and, therefore, I do not know what it contains, but I suppose that Mr. Hamilton as attorney for the Wine and Spirit Traders' Society, which is an organization of importers, is asking for a reduction.

On this schedule at the hearings in 1908 we thrashed out the question pretty thoroughly. You, Mr. Chairman, were present at that time, and probably remember the line of argument made then. At that hearing the main argument of the importing interests was that if any increase of duty were made, it would seriously handicap their business and perhaps put them out of business. Mr. Hamilton in his brief, and also in his long argument, made this statement.

I quote from his argument, in which he says that if the tariff were raised the result would be to drive "a large proportion of the present dealers out of the trade." I find they are still doing business at the same old stand. He also said as another one of his conclusions: "It goes without contradiction that to increase the duty rate upon wines and spirits would be to increase the cost, whether native or imported, to the consumer.

As a matter of fact-and Mr. Needham will bear me out as far as California wines are concerned, and I can confirm the statement as far as eastern wines are concerned-they were never cheaper in price than they are to-day. Of course, these dire prophecies have not been fulfilled. The frame of mind (as Mr. Harrison has just called it) that Mr. Hamilton was in then, if it continues, shows that it really does not amount to anything.

But, Mr. Chairman, the reasons we submit that the present tariff should be maintained may be stated briefly thus: First, that the wines, liquors, and fermented beverages generally are large revenue producers, always have been, always will be, and always have been recognized as such by every country. Second, that in order to make any reduction in the high cost of living you can hardly refuse to tax luxuries. In other words, I do not imagine that any reduction of the duty on champagne can be made by this committee on the ground that it will reduce the high cost of living. It would seem to me, on the contrary, any such reduction might help the cost of high living. A friend of Mr. Harrison's, a lawyer whom I met in New York last week, said to me, "I understand Mr. Harrison would like to see that high duty on champagne reduced. What do you think about it?" I said to him, "Do you think it is high?" He said, "Oh, yes. It strikes me that $9.60 a case is too much." I said, "How does it affect you? You have not bought a bottle of champagne probably in six months." And that is the fact; any reduction in the duty on champagne and foreign wines would affect a comparatively small number of people.

Mr. HARRISON. Isuppose he thought I was out for the Broadway vote. Mr. VANCE. A man can think a great many things, Mr. Harrison. Mr. ANSBERRY. Did you say Mr. Harrison bought a bottle of wine? Mr. VANCE. I said a friend of mine. He happens to know Mr. Harrison.

Mr. HARRISON. He indicated by that that while he was with me he never was permitted to buy a bottle of champagne?