The Capital Times Madison Wisc. Monday, November7, 1921 Heibel Bottling Co.
Heibel Sees Hope To Cut Drink Price Madison Man Wins Fight to Obtain Reduction in U. S. Tax (WASHINGTON BUREAU) (THE CAPITAL TIMES) . WASHINGTON, D, C What hae bcromo of the old - timo eoda oun - tiiin clork who used la chip doivn a sizzling els of root beer, ginger uli: or "sody water" on the counter or pop tho enp from a - bottle of the snme at the prico of a nicfcle? Well, folks, he will be back in Madison in the spring, doinp business at the old stand and nt the old rate, nt least, that ia the promise vi L. G. Heibel, president of the Heibel Bottlinir Co. of Maaison, Jifter A Euccessiul fjfrht in Washington to reduce rotes on soft bever - u - es carried into the Penrosc - Ford - ::,v nuo bill. Tho Madison soft drink magnate has made half a "docn trips to Washington s'mco last spring in nu I'fiort to obtain reductions in the beverago tax. He a member of tho board of directors of the National Bottling association and as tho kfiislativo representative of that organ ivation appeared before thb house committee on ways and means and the senate, committee on finances to urge a cut in the tax. Under tho present law, beverages like root beer, coca cola, ginger ale and other soft drink arc subject to a 10 per cent tax levied upon the manufacturer when the goods arc sold to tho retailer. This tax has been passed on to the ultimate consumer and has "been one of the factors in boosting prices at the fountain. Tho house bill reduced the tax to about 3 per cent, or ' on the finished prodi Cereal beverages, including most 01 :n: near - beers, were to be taxed 2 cents a gallon, and the manufacturers of other soft drinks protested that this discrimination would be a burden to them. After a long tight, during which Sen. La Toilette obtained an nudicme for Mr. Heibel beforo the senate finance committee and had the ease reopened several times, the senate bill fixea tho rato at a figure slightly below the house bill rate and in this form the mensuro went to the senate, Mr. Heibel came to Washington last week from tho National Bottling association convention in St Louis and again took up the fight to have the tax Teduccd to the rate fixed for cereal beverages. On Wednesday the 'amendment was proposed, fixing the rate at 6 cents a gallon on syrup, and 3 cents a gallon on carbonic acid gas, making the rate on the finished product about 2 cents a gallon. An attempt lo fix a straight tax per gallon was voted down. "A.t a result of the reduction of tlio beverage tax, all kinds of soft drinks should bo selling in Madison at 5 cents per glass and bottle, within a few months," Mr. Heibel stated. "If the public pays more it will bo simply because the retailers are profiteering. With the tax cut to the level iixed in the senate bill, which wo are confident will be accepted by tho house, a margin of suflkient profit will bo left for the dealer if ho sells at the old price oi a nickel, and I am confident that wa can restore that price in Madison by spring, at tho latest."