Savannah morning news. [volume] (Savannah) 1868-1887, 1882-06-01
THE ALLEGED WHISKY RING.
The Inquiry Resumed Yesterday
OVer-prOductiOn-H the Tax Re-
ductiOn is Viewed by DIstIIIers.

WASHINGTON, Msy S1.-The special SEN
ate committee to investigate the allegations
that money has been raised or expended by
parties in interest to influence legislation
affecting bonded spirits, met this morning.
The first witness was H. B. Miller, President
OF the Western Export Association, who
explained the purpose Of that organization
to be simply to protect the Western distil-
lers from the disastrous consequences Of
over-production in connection with the fall
ing off in export trade of some sixteen mil
lion gallons during the past year. They
formed pools, aud had raised by
assessment 1921, 900, which was again
distributed among those In business who
had made losses. That every dollar was
raised from distillers and was distributed
among them. 1t was purely business ar
rangement to sustain prices In the home
market and protect the entire association
from ruinous losses by adjusting the losses
of few. He produced figures showing the
amount OF each assessment, the amount each
firm had paid and the amount each firm had
received. Mr.. Miller stated that there
was no business in the world in which pool
could be made so readily as in the distillery
Internal Revenue Department served as a
check, so that it could be known to fraction
just how many gallons each distiller made
and what he did with 1t. He thought thepres-
ent trouble came from over Production
When the bonded period was extended un-
der the Carlisle bill distiller sent agents all
through the country, who sold whisky
In bond with the specious argument to deal
ers: "It you buy whisky in bond now, you
will nf haun 70 e. ~
You can buy it now for 81 a gallon, let 1t lie
in bond, and 10 three years 1t will be worth
50, IS or $40" and the result was that men
that had before never bought more than a
few gallons had now all the way from
five barrels upward living in bond,
that everybody in Kentucky went
to taking whisky and continued to make it
so long as they could sell 1t in bond. He be-
lieved more than three-fourths OF the
whisky now in bond is owned by outside
parties other than distillers, and that If Con-
gress should compel the payment OF this
tax without extending the bonded period,
fifty million gallons would be thrown upon
the market and sold for payment of the
tax. This would compel the makers of
high wines all over the country to close
their distilleries. The effect of this,
he believed, would be disastrous in
many ways. It would at once destroy the
mhIhOb IOI Ou6 uuuuICQ luOuSd0u DuSQ6lB
OF grain per month used by the Illinois dis
tilleries. The present over-production of
Kentucky whisky, he thought, would
amo11t to fifty million gallons. He thought
Con- ress would make a great mistake, If it
should now refuse to extend the bonded
period, and he did not believe the same
trouble would arise again, because the peo-
pie would not again be fooled into buying
whisky in bond in excess of the legitimate
demand for consumption.
Mr.. Miller was asked: "What are the
views Of your association on the question
of reducing the tax on whisky to fifty cents
a gallon?"
He replied that, of course, there was a
difference OF opinion. He was engaged
entirely in the export trade, and it would
make but little difference to him, but job
bers who were compelled to trust their
whisky all over the country would, of
course, prefer to trust to the extent of fifty
cents per gallon rather than ninety cents.
Mr.. Miller stated that not one dollar had
ever been paid by his association to infiu-
ence legislation, and that they never had
been approached by any lobby or anyone
pretending that he could influence legisla-
tion.
Edwin Stevens, of Cincinnati commission
merchant and Treasurer of the National
Dstillers' and Spirit Dealers Association,
was next examined. The association was
formed in October, 1879. Its purpose
mainly was to watch legislation with a
view to protecting the interests of the trade.
The total income of the association is de-
rived from annual dues from members,
which vary from $40 to $50, and for the
past two years this income has aggregated
about $4,000, out Of which annual salaries
were paid as follows: The President 5000,
Secretary 81 800, and Treasurer 1900. Mr..
Stevens fully corrOborated Mr.. Miller's
statement that no money had ever been ex-
pended by their ASSOCIATION to influence legis-
lation.