ing power since 1946, should return consumption levels to the neighborhood of the 1946 per capita figure of 1.65 gallons.

Based upon such a per capita consumption under today's population, and making allowances for increased corporate and personal income-tax collections, the net cost to the Government would be approximately $210 million. The increased gallonage also would bring the States an additional $70 million in tax collections, leaving a net loss to the public revenues of only $140 million.

Our industry feels that the public is entitled to the benefit of any tax reduction, and it is anticipated that any excise-tax relief will be passed on to the public. This would free $783 million from the amount now being spent on liquor for consumers to spend for the things they buy, including legal liquor.

Incidental but highly important is the additional advantage this $783 million increased trade in commodities will have on added employment, increased use of real estate, increased business for related industries furnishing raw materials to the manufacturer, and increased services in the distribution of the products.

The present $10.50 tax is, in our opinion, clearly discriminatory against the consumer, the various States, the industry, and the public, and if we are to correct inequities in our present tax laws, the rate should be reduced to $6.

(The following exhibits were submitted for the record by Mr. Joyce :)

EXHIBIT G

[From the Newark Evening Sun, July 29, 1953]

BIG STILL CAMOUFLAGED IN SUSSEX SILO

RIVER POLLUTION LEADS TO DISCOVERY

(Staff correspondent)

NEWTON.-State police, sheriff's deputies, and alcoholic beverage control agents yesterday uncovered a large still built into a silo at the Springbank Farm in the Baleville-Branchville road near here. The whole operation was concealed in neat farm buildings.

A brown color in the Paulinskill River led to uncovering the still. Sheriff Skok and State Police Sergeant Kloza were making a routine check to locate the source of the pollution when they discovered the still.

The raiders found 15,000 gallons of mash, 2 tons of sugar, and a small quantity of alcohol. They said the still was capable of producing 5,000 gallons of alcohol daily.

The ABC agents, who described the still as one of the most modern yet seized in New Jersey, said 5 large wooden fermenting vats, filtering apparatus and pumps were built into a silo, barn, and 2 additions to the barn. Farm equipment was stored outside.

The main column of the still, concealed in the silo, was 30 feet high and 36 inches in diameter.

The raiding party arrested John D'Agostino, a former Budd Lake resident and owner of the farm. He said he rented the farm in May to the Leonard Bleach & Solvent Co. of Port Jervis, N. Y., and knew nothing of the still.

D'Agostino, who purchased the farm last November, admitted constructing the buildings which concealed the still and equipment, agents said. He told them he built the structures to store farm machinery. D'Agostino's home is 300 feet from the barn, according to police.

WASTE PUMPED TO RIVER

Police said the still was warm and speculated it had been used early yesterday. Skok said waste was pumped through an underground pipe to the river, a

quarter of a mile away. The still included a 9,000-gallon vat built into the silo, four 5,000-gallon vats in a new addition to the barn, and a mixing vat.

Port Jervis police reported that a check of the area had failed to reveal any Leonard Bleach & Solvent Co., or any firm of similar name.

D'Agostino was to be arraigned today, charged with possession of an illicit still.

EXHIBIT H-1

[From the Philadelphia Inquirer, July 24, 1953]

MAMMOTH STILL SEIZED IN RAID IN ROXBOROUGH

Operations of a still capable of producing 1,350 gallons of 180-proof whisky daily were halted last night when officers of Capt. William Down's special squad staged a raid on West Shawmont Avenue, a half-mile west of Ridge Avenue, Roxborough.

Police Commissioner Thomas J. Gibbons said he believed the still "was the largest ever to operate in the city." He called the operations "a clever scheme to cheat the Government of nearly $14,000 in taxes a day."

Although the plant, valued at nearly $50,000, was idle at the time of the raid, police indicated the operators were ready to resume production soon.

OWNER ARRESTED

Captain Downs said the two-story stone house that housed the boiler and a huge copper still contained 12,000 pounds of sugar and 1,000 pounds of dry yeast. Police also confiscated 15 5-gallon cans of whisky.

Mathew Keck, 54, a cabinetmaker and the owner of the property, was arrested and charged with violating the State liquor laws.

Keck, who lives in a frame house some 50 yards from the still, denied any knowledge of the operations. He told police that "some men came to me to rent the property a few months ago." He refused to give any names.

HEARINGS TODAY

He said he believed the men to be builders because "they were always hauling building materials to the stone house."

Keck will have a hearing today at the Ridge Avenue and Cinnaminson Street station.

Captain Downs said the raid was conducted after numerous complaints were received by police of "alcoholic smells" in the area. He said his men investigated the operations for nearly a week before making the raid.

Francis V. Wills, superintendent in charge of the alcoholic and tobacco tax division of the eastern and middle Pennsylvania judicial district, said, “A master craftsman is responsible for building this still."

He said most raids by police involved stills capable of producing less than 100 gallons a day. He called the 1,350-a-day capacity of the still raided last night "enormous," stressing the fact that liquor is taxed at $10 a gallon.

Wills said he believed the still was constructed about 9 months ago and that the production scheme was to produce one large batch and then halt so as not to arouse suspicion. He said he did not believe the still was operated daily.

LIKE A DISTILLERY

Several thousand empty 5-gallon shipping containers were stored near the still. Captain Downs said the operation assumed “distillery-like proportions." His men uncovered a 3-inch pipeline leading from the still to a storage shed more than 50 yards away.

In the shed were housed four giant vats and a new electric pump. Each vat was 8 feet high and measured 7 feet in diameter and each had a capacity of 5,000 gallons each.

VISITORS RELEASED

While the raid was being conducted, Keck's brother, Carl, 40, of Kingston Road, Havertown, and William Becker, 50, and his wife, Adolphina, 50, both of Blue Bell, Pa., arrived at the scene, apparently to visit Keck. Police released them after questioning.

37746-53-pt. 4-40

Commissioner Gibbons said he would ask for "complete statements" from Inspector Robert Strange, commanding officer of the sixth police division, and from Capt. Vincent B. Harris, commanding officer of the fifth district, in whose territory the still was located. The commissioner said he wanted to know "under what circumstances the still was able to operate."

ASSEMBLY JOINT RESOLUTION 1-JOINT RESOLUTION MEMORIALIZING THE CONGRESS OF THE UNITED STATES TO REDUCE THE FEDERAL EXCISE TAX ON DISTILLED SPIRITS

Whereas between 1941 and 1951 the Federal excise tax on distilled spirits has been increased 1622 percent; and

Whereas in the same period the median increase in Federal excise taxes on 44 other product groups subject to Federal excise taxes was by 452 percent. Whereas since pre-World War II, the proportion of the average retail price consisting of tax has increased 89 percent in the case of distilled spirits, whereas it has decreased 19 percent in the case of cigarettes and 21 percent in the case of gasoline; and

Whereas some one-half million families in the United States of America look to the production and sale of distilled spirits as their source of livlihood; and Whereas some 400,000 families in the United States of America have an ownership-participation in one branch or another of the distilled spirits industry; and Whereas on the basis of recent financial statements, the profits available to stockholders in distilling companies have declined between $52 million and $103 million and the resale value of their stock holdings has declined some $200 million; and

Whereas in the year 1952 the lawful sales of distilled spirits declined by some 27 million gallons over the previous year, thus causing a loss of revenue to the Federal Government, as well as to employees and stockholders; and

Whereas the latest increase in the Federal excise tax on distilled spirits has cost the American consumer some $346 million over the cost for the same gallonage at the previous tax rate; and

Whereas the present Federal excise tax on distilled spirits is obviously discriminatory and confiscatory and economically unsound, and causes a very substantial reduction in the tax revenues of the several States as well as of the Federal Government: Now, therefore,

Resolved by the Assembly of the State of Nevada (jointly), That the Congress of the United States of Ameria be, and it hereby is, memorialized to reduce the Federal excise tax on distilled spirits from its present discriminatory and confiscatory rate of $10.50 per gallon to $6 per gallon, which is still 50 percent above the applicable tax rate in 1941; and be it further

Resolved, That duly certified copies of the resolution be forthwith transmitted by the secretary of state of the State of Nevada to the President of the Senate of the United States of America; the Speaker of the House of Representatives of the United States of America; each of the United States Senators from the State of Nevada; and the Members of Congress from the State of Nevada.

EXHIBIT B

RESOLUTION No. 1.-JOINT RESOLUTION PETITIONING AND MEMORIALIZING THE CONGRESS OF THE UNITED STATES TO STUDY THE FEDERAL LIQUOR TAX POLICY AND TO ENACT LEGISLATION TO REDUCE THE PRESENT EXCESSIVELY HIGH TAX RATE

Whereas the 21st amendment to the Constitution of the United States vests in the individual States control over the trade in and use of alcoholic beverages; and

Whereas in the exercise of such control 46 States including the State of Maryland have recognized the compelling demand for alcoholic beverages, and have enacted laws to protect the health, welfare, safety, and morals of the people by allowing those who are morally responsible to engage in the production and distribution of alcoholic beverages, and by strictly supervising such production and distribution; and

Whereas the aforesaid 46 States have levied excise taxes on alcoholic beverages for the purposes of encouraging temperance, reimbursing the States for their costs in maintaining such strict supervision and control, and providing revenue; and in fixing the amount of these excises, States have sought an optimum figure which will achieve a balance between the three enumerated objectives; and

Whereas the Federal Government has so substantially increased its excise tax on alcoholic beverages that the consumer price of such beverages has risen to several times their cost of production; and

Whereas the result of such increase in consumer price has been to divert many sales from the controlled distribution system set up by the State of Maryland to the bootleg industry with an accompanying disregard for law, danger to the health of its citizens, and loss of revenue to both State and Federal Governments; and

Whereas it is the considered judgment that the Federal Government has raised its excises beyond the optimum level consistent with the objectives of taxation and control; and has taken from the State of Maryland the power to restore the proper balance: Therefore, be it

Resolved by the General Assembly of Maryland, That in order to eliminate bootlegging, restore respect for law and order, and provide adequate revenues for both State and Federal Governments, that the General Assembly of Maryland does hereby memorialize and petition the Congress of the United States to study the Federal liquor tax policy and enact legislation reducing the present excessively high tax rate: And be it further

Resolved, That the Secretary of State be requested to send a copy of this joint resolution under the Great Seal of Maryland to the Members of the House of Representatives of the United States from Maryland, the United States Senators from Maryland, the Speaker of the House of Representatives of the United States, and the presiding officer of the Senate of the United States.

Approved:

THEODORE R. MCKELDIN,

JOHN C. LUBER,

Governor.

Speaker of the House of Delegates.

GEORGE W. DELLA,

President of the Senate.

EXHIBIT C

A CONCURRENT RESOLUTION MEMORIALIZING THE CONGRESS OF THE UNITED STATES TO REDUCE THE FEDERAL EXCISE TAXES IMPOSED ON ALL KINDS OF ALCOHOLIC BEVERAGES

Whereas the Federal excise taxes on alcoholic beverages has increased approximately 900 percent since 1933; and

Whereas the Federal excise taxes on distilled spirits has risen from $1.10 a proof gallon in 1933 to $10.50 today; and

Whereas other taxes add an average of $2.80 more; and

Whereas today over half the price the consumer pays for alcoholic beverages is tax; and

Whereas such high taxes encourage the illegal manufacture of alcoholic beverages; and

Whereas because of such illegal manufacturing of alcoholic beverages, the Federal, State, and local governments are being cheated out of millions of dollars a day in tax revenue; and

Whereas with a more equitable Federal taxing of alcoholic beverages by materially reducing such taxes, bootlegging, which thrives on its "no-tax" price advantage, would become less attractive to criminals and graft and corruption which accompanies such highly outlaw activities would be reduced; and

Whereas a reduced Federal tax would bring the pricing of legal alcoholic beverages within the reach of the average-income buyer: Now therefore, be it Resolved by the house of representatives of the 88th general assembly of the State of Indiana, the senate concurring:

SECTION 1. The Congress of the United States is hereby memorialized and petitioned to enact legislation reducing the amount of Federal excise taxes on all alcoholic beverages.

SEC. 2. The clerk of the house is hereby instructed to send a certified copy of this resolution to the President of the United States, to the President of the United States Senate, to the Speaker of the National House of Represenatives, and to each United States Senator and to each Congressman from the State of Indiana.

EXHIBIT D

RESOLUTION ADOPTED AT THE 15TH ANNUAL MEETING OF THE NATIONAL ALCOHOLIC BEVERAGE CONTROL ASSOCIATION ON NOVEMBER 17-19, 1952, at THE SANS SOUCI HOTEL, MIAMI BEACH, FLA.

Whereas control over the trade in alcoholic beverages is vested in the various States by the 21st amendment to the United States Constitution; and

Whereas 46 States in exercising such control have enacted laws designed to safeguard the welfare and safety and health of the people by promoting temperance and respect for law and order; and

Whereas excessive taxation by any governmental body of alcoholic beverages will defeat the purposes of sound liquor control by encouraging an illicit trade in such beverages; and

Whereas the Federal Government in the 19 years since repeal of prohibition has increased the tax rate on distilled spirits by more than 850 percent, from $1.10 a gallon to the current level of $10.50 a gallon and only last year increased the high wartime rate of $9 to $10.50 a gallon, thus paving the way for an alarming increase in the production and use of illicit whisky which has been harmful to the welfare and health of the public; and

Whereas the excessive Federal tax rate has resulted in decreased sales of legally produced distilled spirits, thereby depressing the base on which State alcoholic beverage tax or markup rates are predicated and causing a loss of State revenues: Therefore, be it

Resolved, That we, the members of the National Alcoholic Beverage Control Association in annual conference assembled deplore the liquor-tax policy of the Federal Government and declare it to be inimical to sound State liquor control and as also being detrimental to State revenues; and be it further

Resolved, That the liquor authorities of the sovereign States of Alabama, Idaho, Iowa, Maine, Michigan, Montana, New Hampshire, North Carolina, Ohio, Oregon, Utah, Vermont, Virginia, Washington, West Virginia, and Wyoming, and Montgomery County, Md., which operates county-controlled liquor stores,