The sun. [volume] (New York [N.Y.]) 1833-1916, 1870-02-18
THE GREAT WHISkEY WAR.
WHY rs THE WHIsKEY TRIBE LEAF
ING VIEW YORK OITTY

| ~ P'''' " N'HlHiNu NlllShty WIS twenty Genus
gallon in January, 1861. There were then but four
disercs in the vicinity OF this city, and few in the
interior Of the state.
THE FINER BOURBON WHISTLES
were mainly produced IN Kentucky, and rye whiskoy
In Pennsylvania and Maryland About oneth,rd OF
all manufactured In the United States came to this
city, and was landed at the piers In the lower por
ton OF the city, whence II was convey cd to tho
storehouses 10 that locality.
THE NEW YORK wnrsRRr DISTRICT.
Tho Offices OF the principal commission merchants,
and dealers In spirits generally were situated In the
vicinity Of tho warehouses The financial institu.
lions which advanced upon goods were ALEC concon-
tratcd In that part OF the city The natural move.
ments OF trade and finances made that neighborhood
the focus Of the produce grain, provision bust
ness. The same merchants who advanced upon
grain also advanced upon distilled spirits aud some
OF the largest fortunes made In the commission bust.
ness, as, for instance that Of David Dows were to
great extent accumulated by handling Western
spirits. II in the immediate vicinity Of the Of
fees Of these largo merchants that the vessels wero
laden for the ports along the coast Of tho United
United States the Mediterranean, the Levant, and
for ports In Europe generally Alcohol tor foreign
countries formed one Of the principal items Of their
freight
NEW FORK MoSoroLizED rHR ALCOHOL
EXPORT trade.
The capital for the Disabling and cattlcfee ling
business Of the West and southwest was TO grrat
extent furnished by New York merchants, who adj.
vanced on whiskey and stock.
la January, 1858, the war advanced high wines to
In January, sol, the internal revenue tax having
l lecn imposed, aud having been advanced from
BY gradations to
TWO DOLLARS rER GALLON,
The maximum figure, the market advanced also
mus common MhlekCN sold ,laIunrN fpr
SsS per gailoI During the prosress Of the w
holders OF spnis, but the first
GRAND LEGISLATIVE SPECULATION
was when dhc two dollar tax being under considera-
tom 10 was first dsiled 10 tax al stock On hand to
The extent Of The Increase ofthc t and subsequently
decided not 90 10 to the COM etc satisfaction OF
the holdeis OF spirits and rspcc' hy Jf the friends
Of those memhels Of Congress sc course had np-
pcared doubtful Tie sheer spet .ators and not the
regular merchants were The large { gamers by this
legislation. When the two dollar became fixed
measure Of legislation then
HEAVY FRAUDS COMMENCED.
irresponsible adventures rushed into the whis.
key business. Their nefarious operations were 50 |
extensive that the old, large wis,cy houses were
seriously affected md hsd TO abandon the distilng
branch OF their busnesss and continued ouy az re.
hners, leehels on dealers. Dlstiilaton the West
ceased and was concentrated In crowded ctes or |
those lqos, where greater opportunities for maud
we've Afforded BY
conRrrr OFFICIALS.
Tie MAN frauds were not committed IN TIC bond.
CT warehouses, but pCrpetrlted by never plac-
Ing the goods under bond at a. The bonded system
oil owed spirits to be retained under boud By the
owner in Cove ument custody until wanted for use,
when tae tax Was paid. IL also allowed the ship
refining in bond and c1por,ation IN bond to foreign
ports where there were United states Consl.s.
THE BONDED SYSTEM.
The theory Of the system was that ;he Govern
ment should afford every facility to business zen
orally cole CT the internal revenue tax generally
only upon the quantity which finally entered into
the bonded system. but the loss to the Government
In tins way was Insignificant compared with the
swindles peIpeuated entirely outside Of the bonded
system.
ruE ruIRrr-sEco DISTRICT.
When the Thirty second Internal Revenue Dis
tct came 70 he created u euvitoned tAc center Of
within is hints the Produce Exchange and tie |
largest fusncnI n.utuons m America. rho natural
Woyerne n,s OF u,dc continued TO bring within the
limits ofthe TAs,g second District thc largest con
signmcrts u whskcyi in III, same manner - 10 caue
10 TIT locality before there MAS any Internal reyc
nue. tax.
SHERIDAN SHOOK.
The nr.t Collector OF the Th,ty.seeo9i District
was sher'iln sLooE. He retained lbs position
JOSHUA ? Nanny
succeeded lin. when Mr. Shoes came INTO cf'ce
the bonded warehouses b. 3 district e-, vtrv
numerous. Iie "a not n wv luv c's. Ierus 90 10
nun within The u.t- uf Dis district, ou 81, rru.rIl
Nat The cost 9i premise mat ril,, Atl 'le uro,
-bliy @ feed cattle, rendered ~ plain ,At. 5i-he.
Iies could not he prchtlble there Csctpt through
nnui. The number Of d.sHi!crcs in other di- r..is
~, large tnat OF one Il nc there wcrr u t.l, oltg
aud br1ns'vn Two hundred licensed ottaniJ. .',ts
" Va, nnd besides large number a.. wars
.ni,rey lha.
BioesAlu ~ BAILEY.
IN, Collector ~ the Fourth District. Itch as.
''ae! tes fh'.ts SECOND W,7 y Bale. lie vac
the Treasury Department at Washingto1 ' go
he came 70 Nc York as ryc- Agent r.. fr
partment. In is,u h. Iooei ell bis .rpo'. .l. 80
Collector Of the Bourtl Nis,ri.L Hls o ..Us
holding the latter Office Ifst attracted .....a
When he went out OF the Fourth District -siysd
distlleries In ether districts in New 4.
yicipity, and nearly all the liquor mercnal,, ...
lshIrenis in the lhirtysecond District.
MS SWEEPING sZILu2Es.
lie also seized liquor Establishments IN las.c-,
Mass, Buffalo y. Y, and Dubuque, Iowa. H. ope.
rltons rcce, "a the assent Of tie Comm ,soaer of
Internal Revenue after they were COMM ncoF
Among the best known OF us operations aga4. pc.
uleries the case cg BaisdCI. ..'.
was the leading man OF a nrm u adverisry-s.
Amer existing only lew months the firm VS. 4i.
solved BY tie consignment to Sing = NJ lIisoa
OF Tie senior partner. The RAID also broke rp he
Kentucky Bourbon Company, who had o wal, Souse
At 70 Vesey street, in the Fourth Distinct and . H.
ullcIy in Paris, ny.
BAILEY WARS on MURRAY
In the Finla. case, in the Ninth District, NJ P-f
icy came personally IN conflict wiki the oniegIH yf
Robert Murray, then Untci States Marshal. M
Bailey drove out The MarshaVs onicer. and cini.i
The premises 10y assault 10 his operations a.~lrst
irict, Mr. Bailoy he'd possession Of property oi lI
kinds iOr many months, Many Of the rccliicra inr
edged judgment and compromised their cases, winch
tcc-'abHshed their credit aud saved them n.a.
bankruptcy.
SEIZURE or BONDED WHISKY.
Mr.. Bailey h.d also seized an immense quan,it, o..
whiFley IN bond, In the bonded warehouses, but ta
department at Washington ordered its release. '
ground mat spirits Ia buld not beng subject 10 Hf
and being IN the custody Of the Government clUIt
not eVade taxation, ana therefore not subjcc O..
seizure on the ALE alton that 1t could evAdc Tie tlA
TIE TAX REDUCED.
nn tha MI Of nIv ,ax
80 cents per gallon, The major portion Of the wills
key In bond IN the bonded warehouses had been hCr
from one 10 three years, and IL had come 10 b.
looked upon rs almost worthless property. II iI
had been wthdIaNn nnder the So tax 10 would havy
brought In the market much less price tllat
1t cost But wncn II rapidly withdraw
under the 90 cent tax Il became the main source OF
supply for the general market. The bonded ware
houses were successveB closed, and at the expira
ton Of nine nOaths from the passage OF tho new
law the bonded system had ceased TO exist. Their
then remained only distillcry warehouses. Since
the enactment OF me new law the revenue frOI
spirits has increased nom Sl300OJO to about S75,
100000 per annum. The maj uiacture OF whiskey has
reverted TO those regions where II houTzhed before
tho war. The Whiskey business generally has gone
FgIau 10