Mr. O'NEAL. Mr. Chairman, may I present these various gentlemen, who will state their names and whom they represent? Mr. CULLEN. Very well. If they have short statements, they may be put in the record. STATEMENT OF JAMES J. DOYLE, PRESIDENT OF THE COOPERS INTERNATIONAL UNION OF NORTH AMERICA Mr. DOYLE. Mr. Chairman, my name is James J. Doyle. I am president of the Coopers International Union. We want 40 go on record as strongly endorsing a floor tax instead of the present amendment. I ask your permission, Mr. Chairman, to file a brief on behalf of the Coopers International Union, for the record. Mr. CULLEN. Without objection, permission is granted. (The statement referred to is as follows:) The Coopers International Union hereby goes on record as strongly in favor of a floor-stock tax in addition to the 25-cent increase in tax on distilled spirits effective as of July 1. Unless a tax on floor stocks is imposed as well as on stocks in bond, the result will be that large quantities of spirits will be withdrawn from bond between now and July 1, thus making available for consumption for many months to come large amounts of distilled spirits. As a consequence distillers' capital will be tied up and distilling operations will be at a standstill for 6 months or more, until that capital is collected back from the stocks tax-paid in advance, which means that during this period the distilling industry will not buy any cooperage at all, and thus all men engaged in the cooperage industry will be thrown out of work until the withdrawn stocks of spirits have been entirely consumed. On the other hand, if the floor-stock tax is imposed, only the normal requirements will be withdrawn for consumption and this in turn will have a steadying influence on employment in the cooperage industry and result in normal pay rolls being maintained in the industry. It is our belief that in the consideration of this proposal the Members of Congress will want to take that course of action which will have the effect of producing steady employment for as many people as possible, and with that idea in mind we urgently request that your committee report favorably this floor-stock tax resolution. Mr. O'SHAUGHNESSY. Mr. Chairman, my name is B. M. O'Shaughnessy. I represent the James Walsh & Co., Lawrenceburg, Ind. I am for the bill. Mr. WATHEN. Mr. Chairman, my name is R. N. Wathen, of Wathen Bros., Louisville, Ky. I am secretary of the Independent Kentucky Distillers Association, and I want to file for the record 20 letters from independent small country distillers in favor of the floor tax. Mr. CULLEN. Without objection, permission is granted. (The letters referred to are as follows:) Mr. NORVELLE WATHEN, Louisville, Ky. J. T. S. BROWN'S SON Co., Inc., DEAR MR. WATHEN: We wish to go on record as favoring the floor tax on taxpaid whisky to become effective July 1, the time of the increased Federal tax of 25 cents per gallon. Yours very truly, J. T. S. BROWN'S SON Co., By CREEL BROWN, Jr. NORVELLE WATHEN, THE WILLETT DISTILLING Co., Bardstown, Nelson County, Ky., May 21, 1938. Secretary, Independent Kentucky Distillers Association, Louisville, Ky. DEAR NORVELLE: Our company heartily endorses the resolution now being considered by the House Ways and Means Committee in Washington, in which it is proposed to place a floor tax upon stocks in the hands of wholesalers and others as of June 30, in order to compensate for the additional tax of 25 cents per gallon upon withdrawals on and after July 1. There is no need to go into the issues involved, for you are thoroughly familiar with them. It is sufficient to say that they are important enough to warrant a vigorous effort on our part to do all in our power to see that the committee and the Kentucky delegation in Congress are acquainted with the facts and their significance. It is our confident hope that the association will develop in usefulness so that it will be an important factor in fostering the relations of member distillers with the National and State Governments, the trade and with the public. The organization can be if in our meetings and conferences sound policies are formulated after the interests of all are taken into thorough consideration; after which the members hould back their representatives to the utmost. With very best wishes, we are THE WILLETT DISTILLING Co., BARDSTOWN DISTILLERY, Bardstown, Nelson County, Ky., May 21, 1938. Mr. NORVELL WATHEN, Louisville, Ky. DEAR MR. WATHEN: I believe the imposition of the floor tax in connection with the increased tax on whisky just passed by Congress is vital to the well-being of the distilling industry, especially to the smaller independent distillers like ourselves. I wish you and the committee every success in their efforts to induce Congress to pass the necessary legislation making the floor tax effective with the new tax rates. Very truly yours, Mr. R. N. WATHEN, HENRY MORRIS, Sales Promotional Manager. JAMES B. BEAM DISTILLING Co., Secretary, Independent Distillers Association of Kentucky, Louisville, Ky. DEAR SIR: We hereby authorize you to voice our strong opposition to the elimination of a floor tax in connection with the new revenue bill which increases the whisky tax to $2.25 per gallon, effective July 1, 1938. Failure to include a tax on floor stocks will cause chaos in the industry and will be a distinct disadvantage to the smaller independent distilleries. Yours very truly, JAMES B. BEAM DISTILLING CO., BLAIR DISTILLING CO., St. Francis, Marion County, Ky., May 21, 1938. Mr. R. N. WAthen, Louisville, Ky. DEAR MR. WATHEN: We are in accord with the proposal to tax liquor floor stocks and trust you will do your utmost to see that this tax goes through. Very truly yours, R. A. VAN WAETERMEULEN, Treasurer. Mr. R. N. WATHEN, BURKS SPRING DISTILLERY CO., Secretary and Treasurer, Independent Distillers Association of Kentucky. DEAR SIR: As it appears the Federal tax will be increased, we would like to have the Federal tax to apply to floor stock immediately. Failure to take this action will completely demoralize the industry. Very truly yours, BURKS SPRING DISTILLERY CO., INC., By FRANK L. BICKETT, Vice President. CHURCHILL DISTILLING CO., Distillery Churchill, Nelson County, Louisville, Ky., May 21, 1938. Mr. R. NORVELLE WATHEN, Louisville, Ky. DEAR MR. WATHEN: This company wishes to go on record in the event that the additional 25 cents per gallon to be levied by the Government on tax-payments of whisky, that it be applied to floor stocks on bulk and case goods. Very truly yours, CHURCHILL DISTILLING CO., Mr. R. N. WATHEN, Louisville, Ky. CUMMINS DISTILLERIES CORPORATION, DEAR MR. WATHEN: We are heartily in accord with the proposed legislation whereby a floor tax of 25 cents per gallon would be placed on all whisky as of July 1, 1938. It is our feeling that if the new tax of 25 cents per gallon is confined to withdrawals after July 1 that it would work a tremendous hardship upon the smaller distilleries. For this reason we strongly urge that the tax be extended to include floor stock as of July 1 as well as withdrawals. Yours very truly, CUMMINS DISTILLERIES CORPORATION, By W. M. MORRISON, Vice President. THE DANT DISTILLERY Co., Mr. R. N. WATHEN, Secretary, Independent Distillers Association, Louisville, Ky. DEAR SIR: Being advised by Mr. Guthrie that you contemplated visiting Washington, D. C., in the behalf of the cause of Kentucky distilling industry, we wish to advise you that we favor any increase in tax on distilled spirits be made to apply on tax-paid floor stocks, if, as, and when it is made to apply on bonded stocks, and there should be no difference in the date same becomes effective. Very respectfully yours, Mr. NORVELLE WATHEN, DANT DISTILLERY CO., By J. E. DANT. DANT & HEAD DISTILLING Co., Secretary, Independent Kentucky Distillers Association, Louisville, Ky. DEAR MR. WATHEN: In the interest of the distilling industry, and to prevent a chaotic condition from arising in the industry, it is imperative that the pending tax bill providing for a tax on floor stocks of alcoholic beverages be passed and enacted into law. Yours very truly, DANT & HEAD DISTILLING CO., By W. W. DANT, Secretary. Mr. R. N. WATHEN, DAVIESS COUNTY DISTILLING CO., Secretary, Independent Kentucky Distillers Association, Louisville, Ky. DEAR MR. WATHEN: I received your telegram this morning reading as follows: "Officers of Independent Kentucky Distillers Association leaving for Washington Monday morning to insist on increased tax applying on floor stocks. Write us Saturday sure your approval on this proposal.' Of course, I was not present when the Independent Kentucky Distillers Association was formed. We are still members of the old association. Will talk with you about the new association the first time I see you. Last week we filed our protest, or rather gave Owsley Brown a power of attorney to represent us in fighting for the floor tax. We are anxious to do anything we can in continuing this fight and while I would be glad to go to Washington with you, it will be impossible for me to go at this time. Sincerely yours, THE DAVIESS COUNTY DISTILLING CO., By THOS A. MEDLEY, President. P. S. Since writing the above I have had a talk with Millard Cox and he is going to Washington Monday and it may be well for you to get in touch with him so that you can have united action. T. A. M. DOWLING BROS. DISTILLINg Co., Mr. R. NORVELLE WATHEN, Secy., Independent Kentucky Distillers Association, Starks Bldg., Louisville, Ky. DEAR SIR: We have been advised that some of the officers of your association are going to Washington next week to appear before the House Ways and Means Committee, regarding placing the 25-cents-per-gallon tax on floor stocks. We would like you to add our name to the list of distillers who are in favor of placing this tax on floor stocks, and we would like you to express our views that if this tax is not placed on floor stocks, it will be entirely unfair to the smaller people in the industry, who are unable to tax-pay large quantities of whisky, and consequently, will be unable to compete with the large corporations. Very truly yours, Mr. R. NORVELLE WATHEN, Louisville, Ky. DOWLING BROS. DISTILLING CO., GLENCOE DISTILLERY Co., DEAR SIR: At the request of Mr. Milton Frentz, of the Churchill Distilling Co., we are sending you herewith a letter addressed to the House Ways & Means Committee, wherein we request favorable consideration to be given to a "floor tax" plan. Wishing you and the delegation success, we remain, GLENCOE DISTILLERY CO., (The letter enclosed by the Glencoe Distillery Co., and addressed to the House Ways and Means Committee is as follows:) HOUSE WAYS AND MEANS COMMITTEE, Washington, D. C. GLENCOE DISTILLERY CO., GENTLEMEN: We urgently entreat your committee to give favorable consideration to the resolution offered by the Hon. Emmet O'Neal, providing for collection of a "floor tax" on any increase in Federal tax on distilled spirits. Respectfully, GLENCOE DISTILLERY CO., HOFFMAN DISTILLING CO., Lawrenceburg, Ky., May 21, 1938, Mr. R. N. WATHEN, Louisville, Ky. DEAR SIR: We approve your proposal to increase the tax on the floor stocks of whisky, as this would place the small distilleries on the same basis as the larger plants. Yours very truly, HOFFMAN DISTILLING Co., [Telegram] Chicago, Ill, May 23, 1938. INDEPENDENT KENTUCKY DISTILLERS, ASSOCIATION, Louisville. We strongly favor making new liquor tax applicable floor stocks. THE H. E. POGUE DISTILLERY CO. Mr. R. N. WATHEN, INDEPENDENT DISTILLERS OF KENTUCKY, Secretary-treasurer, Independent Distillers Association of Kentucky, Louisville, Ky. DEAR MR. WATHEN: We note with interest and approval the efforts you are making to have the proposed measures increasing Federal tax on whisky apply also to floor stocks. Failure to incorporate this feature in the bill would prove I feel quite sure, most demoralizing to the entire industry, and if there is anything we can do to assist you in this matter, do not hesitate to call upon us. Very truly yours, INDEPENDENT DISTILLERS OF KENTUCKY, INC., Mr. R. N. WATSON, LABROT & GRAHAM, Frankfort, Ky., May 21, 1938. Secretary, Independent Kentucky Distillers' Association, Louisville, Ky. DEAR SIR: The question of whether or not to include floor stocks in the proposed 25-cents-a-gallon whisky tax is being considered. One of the fundamentals of our Democracy is freedom and equality. This increased whisky tax would apply in favor of those who are fortunate in having the capital to invest in large inventories and would discriminate against those who for any reason did not have an inventory at the time of such tax increase. The fact is quite obvious that some would greatly profit by failure of Congress to treat all alike. Others, of course, would be handicapped because they did not have the capital or credit to increase inventories. We can see no logical reason for not giving everyone an equal opportunity. Will you please urge Congress to pass the floor-tax amendment. Yours very truly, 70769-38-7 |