New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-05-31
NEW-ORLEANS WHISKY.
ANNUAL FRAUD OF HALF A MILLION DOL
LARS.

| INVALUABLE FAILURE OF OFFICIAL NVESIIGATIONS-
HONEST AND PROFITABLE MANUFACTURE IMPos-
slBLE IN MISREPRESENTATION THOU
SAND BARRELS FRAUDULENTLY SOLD EVERY YEAR.
| TO the EdfiOr Of The Tribune.
| SIR An official investigation of the opera
lions OF dstlers OF whisky NewOrleans has recently
been made by order OF the Internal Revenue Depart
ment The result Is clean report in favor OF the dis
tilers This is In accordance with established usage
The Department has been able TO discover any
| fraud at New-0reans 10 is nevertheless true that
frauds in the dstilaon and sale OF whisky at that place
and at st. Louis exist, that they extensive and que
cessfu that they have been pracced for than
years, that they in full operation at this time. and
| that their existence and continuance chargeabe
directly and cOnclusiyely 10 the ineicieDcy connv-
ance OF officials Of the Internal Revenue Department.
With full consciousness OF the weight Of these aega-
tons, the facts which they based submitted
the public The conditions indispensable 10 the legu-
and profitable dstilaton OF spirits at New Orleans
do not and did exist The profits and always
been fraudulent To make this clearly appear IL Is
necessary forth facts In regard the process
OF distlation. Corn meal, coarsey ground is the prm
eipal material This is scaded at temperature 20 de-
veop fully the starch saccharne matter due pro-
| portion Of the meal OF small grain and malt
| having been added, the ia violently
| stirred until cooled TO the temperature desired,
when yeast is introduced Then all 10 Off quickly
into fermentng tubs which are the large watts situated
near every st-hOuse. In these tubs the mixture OF
meals undergoes viuous fermentation, whereby the
saccharne Is changed into ethyl alcohol. The time
allowed for this transformation is fixed by regulation at
4s hours. When the saccharne Is this converted, the
beer liquid is then called goes 10 the STILL whose
only province is separate the ethyl mechanically by
agency OF heat, evaporatlng 1t at lower tempera
ture than water The ethyl thus evaporated is con-
densed in the worm, which passes through cold water
and delivers the product the form Of whisky or in
technical phrase hgh wines" The residue is sop and
goes 10 waste fed to stock To make this process
fairly successful several conditions requisite First
the dstery be situated within the cornproduclng
region, which extends from parallel IS to parallel 40
north latitude and is also the great producing section
for smaller grain. The difference between the cost OF
Transporting grain bulk and its distilled product ia Of
itself a sufficient margin for profit TO the dlsers; sec
ond the process must be conducted in cool climate,
suited to produce the greatest yield OF spirits from
given quantity OF grain, and that is bounded by the lin
its OF the corn-growng region. Third. cooperage and
fuel very considerable items must be plenty and cheap
and fourth, skilled at least intelligent labor at low
| rates must be employed.
! DISABLING UNPRoHTABLB AT SEw-ORLEASs WITHOUT
FRAUD.
None OF these conditions exist AZ New-Orcans Every
bushe Of grain used there for disng ~ transported
from the North when corn Is quoted at g. Louis at
500 aud AZ cents and Chicago at 800 and Ii the price
current at Newt Orleans Is IS and 81 cents per bushe
As 10 the YIELD the capacity standard FOR the Northern
dstileres Fixed by the officials IN accordance with law,
varies II IL less than three gallons Of spirits for
each bushe of mash, and in some instances u Is four
For the standard is from two and half 10
three gallons II the disers return be less than 50 per
cent standard he is assessed for the deficiency
that is to saw the Northern diser is requredSby the
highest standard account for three and twctenths
gallons and the New-Oreans dister for two and SIX
tenths gallons OF whisky for each bushel OF mash That
is the minimum; but the dstler must report the true
yield and pay full tax every gallon Of spirits actually
produced. Cooperage for the Northern dstilleres IS
| home production but for New-Oreans it is manuiac
tured at the North. and the dster pays, in addition to
the cost to the dser the OF transpora
ton distance OF from 500 to 1900 miles, so with
fuel. Every bushe Of coal used in the dsteries at
New-Orleans is shipped from the North and lastly, the
labor be skilled, intelligent is done by oper
atves from the North at high wages. Thus every con-
don OF climate and of manufacture ia against the dis
tilaton OF spirits at NewOrleans. To make this more
specific the following statement prepared at New-Or
leans in March, 1873 and showing the cost OF mash of
100 bushels is given. The prices of material and OF
whisky are quoted at market rates:
70 bushels at zoe. per $50 80
g bushels rye at per bushel Is GO
bushels malt at 81 l2i per busAel ....-..--. 70
Tax on 500 gallons whisky product at highest
mate OF each capacity 2O W
800 gallons whisky at ooc per gallon go %
Sl3 IS
Add 10 the cost the price OF coOperage fueb and labor,
make the proper allowance for interest on capital in
vested and for wear and tear OF machinery and the
proposition that it impossible to conduct the business
OF distillng whisky at New-Oreans. pay the tax and
sell at the prices which rule the market demonstrated
When the yield per cent OF three gallons or OF two
and half gallons that is ordinarily the case. the
loss is OF course, much greater.
But there is another fact which clnches the PROPOSE
ton Prior TO the first tax law the business Of disng
whisky was not known at New-Orleans. 1t was impos-
sbe TO make pay when there was no tax, and there
fore no opportunity for fraudulent profits The only
disteries few, of small capacity where rum was
distilled from the sediment of molasscs known rs els
tern bottoms" Now there are diseTies Of whisky
in full operation. One in the French part OF the city
below Canast uses 900 bushels OF mash and turns ont
C5 barrels Of highwnes day. One between Poydas
and Erato-sts capacity about 90 barrels per day One
in the lower part OF the city daily capacity from 10 to II
barrels aud one opposite CarrOton several miles above
the city, mahes 500 bushels and produces $500 gallons
OF hi ghwines per dayequa to 100 barrels IN addition,
and in proof that the business Is profitable, and that
there is some assurance that 1t will continue TO be So
is the fact that large dstilery and rectiyng estaD
lishment is being built. No one at all eonyeTsant
with the trade and the conditions Of manufacture, can
doubt that II the whisky tax were repealed to-day
every one Of these establishments would be
closed tomorrow. But the fact is that the men
engaged in this business have been and are
rapidly accommodating fortunes. Since ISL the actual
falling of In shipments OF whisky from the North TO
NewOreans not less than 5000 barrels per annum
In the month OF March, 1879 there were sent To new
Orleans by shippers ia the North $500 new WHISKY
barrels for dlsullers Aud although IL Is capable OF
demonstration that highwines can DO distilled IN
Southern Ohio Indiana for nc least II cents per gallon
less than NewOreans the dseTs OF hat city areOy
some able to put their whisky ON the market at
prices below the Of Northern whisky, aud grow
rich at IT, any doubt that every dollar OF thelr
profits stolen from the revenues OF the Government
NgN-Orleans
transport all their material and fuel aud labor from
the North aud dis whisky and alcohol, ana sup IL 70
clL NIL lnIlnnlllLNn Win