Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1882-06-02
WASHINGTON.
An End Reached in the Mackey-
Dibble Contested Case,
And Mackey, Republican Member
from South Carolina, Seated.

WASHINGTON, May oI.--1he 'o'0
in the Senate military committee to
day on the question of faVoraoly re-
porting Mr.. Sewell's bill for the re-
lief of Fitz John Porter was as fol-
lows: Yeas-Sewell. Cockrell, Maxey,
Grover and Hampton. No-Senator
Logan. Messrs. Cameron, OF PennN
sylvania, Harrison and Hawley were
absent Mr.. Cameron is known to
agree with the conclusion of the na,
iority of the committee. Mr. Logan
expects that his minority report will
be approved by Messrs. Hawiey and
Harrison upon their return to the
city, and says Mr.. Hawley has ins
formed him that he is in accord with
its main proposition.
The special committee of the
Senate to investigate the allegations
that money has been raised or ex~
pended by parties interested to in
huence legislation affecting bonded
spirits, met this morning. The first
witness was H. B. Meller, president
of the Western Export Association,
who explained the purpose of the
organization to be simply to protect
Western distillers from the dis
astrous consequences of over pro-
duction in connection with the fall
ing off in the export trade of some
100000 gallons during the past
year; that they had formed a pool,
and had raised, by assessment,
1000, which was again dis,
tributed among those in business
who had made losses that
every dollar was raised from
distillers, and was distributed among
them, and that it was purely "a busi~
ness arrangement to sustain prices
in the home market, and to protect
the entire association from ruiDous
losses by adjusting the losses of a
few. He produced figures showing
the amount of each assessment, the
amount each firm had paid, and
the amount each firm had received.
MIR. Miller stated that there was no
business in the world in which pool
could be made so readily as in the
distiliing business, that the perfect
system of the internal revenue de-
partment served as a check, so that
it could be known to fraction just
how many gallons each distlIIer
made, and what he did
with it. He thought
present trouble came from over
production. When the bonded pes
riod was extended under the Cadlsh
bill distillers sent agents ali through
the country who sold whisky In
bond, with specious argument to
dealers. If you buy whisky in bond
now you will not have to pay tax for
three years. You can buy it now for
two dollars gallon, let it lie III bond,
and in three years it will be worth
six, eight or ten dollars, and the re-
bought more than few gallons had
now all the way from five barrels up
ward lying in bond. That every
body III Kentucky went to making
whisky and continued 10 make it so
long DIS they could sell it in bond
He believed more than three-fourths
OF the whisky now N bond is owned
by outside parties, other than dis
tlllers, and that if Congress should
compel the payment Of this tax,
without extending the bonded period,
5O,000,000 gallons would be thrown
upon the market and sold for the
payment of tax; that this would
compel the makers of high wines
ali over the country, to close then
distilleries. The effect of this, ht
believed, would be disastrous IL
many ways. 1t would at once de
stroy the market for 100000 bush
els of grain per month used by illici
distillers. The present oyer>produc
tion of Kentucky whisky. he thought
would amount to 50,000,000 gallons
He thought Congress would make
great mistake if 1t should now re,
fuse to extend the bonded period, an(
he did not believe the same troubl
would arise again, because the peo
pie would not again be fooled int
buying whisky in bond in excess o
the legitimate demands for consump
ton.
Mr.. Miller was asked, "wbat az
the views of your association on th
question of reducing the tax on whis
ky to so cents a gallon" and replie'
that, of course there was differenc
of opinion. He was engaged entire
ly in the export trade, and it woul'
make but little difference to him, bu
iobbers who were compelled to trus
their whisky all over the countr
would of course prefer to trust t
the extent of so cents per gallo
rather than 80 cents. Mr.. Mile
stated that not one dollar had eve
been paid by his association to Unfit
ence legislation, and that they ha
never been approached by any lobb.
or any one pretending that he coul
influence legislation.
Adam Stephens, of Cincinnati
commission merchant and treasure
Of the National Distlllers and Splr
Dealers Association, was next e.
amined The association wa
formed in October, 1879, and il
purpose mainly was to watch th
legislation, with, view to protectln
the interest of the trade. The toti
income of the association is derive
from the annual dues of the mem
oers, which vary from $40 to S3l
and for the past two years this in
come has aggregated about $4,000
out OF which the annual salarie
We're paid as follows Presiden
eooO; secretary, $1,800, and tt
II