The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1882-06-23

rs
int
and
Third-IIi...
allow the owners IS to use
of its capital without ll...rest for an
indefinite period determined by them:
selves by pOstponing the collection
of its tax to suit their interest and
convenience.
Fourth-That it shall allow the
owners leakage twice rs great us
the actual losses, amounting in eight
years to thirteen and one.half gallons
on every barrel of forty gallons,
equal to one-third of the entire guam.
tity.
For all this the government is to
receive no profits nor any cOmpensa.
ting advantages whatever, but is to
he permitted to draw from the firm
ut such tine as may suit the interest
and convenience of the distiller and
his vender, only so much of the re.
manning twO-thirds of its original
capital, after deducting leakage al
lowance, as may not have been stolen,
burned or otherwise destroyed during
the term of the partnership.
AS to the fourth point, he says
this seems to him the most remark
able, not to say suspicious, feature
of this remarkable measure. The
first measure actually requires every
person having spirits in bond ut the
time of the passage of the act to
give, within thirty days, the new
graduated bond provided for in the
bill. 1t says he shall give it. That
the new bond is constructed on a
sliding scale. by which the owners
of 1000 gallons or less must give Sc
curity for the full amount of the tax,
namely, 30 cents per gallon. but it. is
provided that the penal sum of the
bond shall decrease i'm proportion
as the quantity of whisky increases,
until the owners of 100000 gallons
shall give Il bond for only 49, cents
per gallon, and the owner of $780,
600 gallons shall give bonds for only
4 cents per gallon. AS to the fifth
point, he says, il it had been framed
expressly to encourage the formation
of an immense combination it could
not have been more adrOitly drawn.
Is there any other conceivable reason
for the graduated bond which COM
pels the small operator to give Sc.
curity at so cents Il gallon and yet
permits the holder or il combination
of holders, to give bond of only =
cents per gallon, or even less, il they
will only make the combination
large and strong enough to entitle
themselves to the favor of the gov
eminent! All that such combine
ton rs the bill invites could need to
place the government revenues at its
mercy would be,
First-The accumulation of stock
large enough to menace the market
and SO large that only themselves
could handle it.
Second Freedom from bonds SO
that the government could not ell
force the payment of the tax other
wise than by sale of the whisky.
The stock has already accumulated
or very soon will be under the slim
ulOus which the bill affords. The
desired freedom from the inconven.
ce of bonus would be secured by the
bill. There is piling up in the sight
of any combination or ring that may
he formed stock of 85,00O,000 gall
Ions on which the government has a
lein of $40. 100000. This vast stock
is increasing at the rate of 5000, 900
a month.
The bill is adroitly framed to en-
able the combination to throw this
vast accumulation at almost any time
when its plans may be matured. This
can be done by simply emitting to
give the bond. when the government
will be compelled to sell the spirit
to meet the tax. The result would
be that al eight or ten years supply
on hand would become pane in the
market and Il general decentralization
In the whisky trade. The spirits
would not sell for the amount of the
tax, and Congress would have to
intervene and authorize the sale for
what it would bring. In conclusion
Mr.. Window says: ut is by no
means impossible for q gigantic
whisky ring to be formed under this
bill, which shall by including all the
principal distillers and dealers, COM
pei the government to sell at great
sacrifice of its revenues. Already
the whisky interests are thoroughly
organized into powerful assocla.
tion which has the power, and has
exercised it, to tax its members with
in few months $3.50, 900 to promote
the interests of the organization. 1t
would not be difficult, l think, to
direct the power of the organization
with such other large capitalists as
speculation would entice. to tn
poses of such combination
described. The operator
have had 80 satisfacii
toiore that they
the ductility of
less believe tl.a
turn here two
earlier, hacked I,
$50 900 900 gallons OF W
the owners of which are distlIu"Led
I'LL over the country, they will easily |
induce Congress to grant them relief
10y ab0lishing or reducing the tax.
/ confess that they have some reason
for their faith, and il the pending |
bill become Il law, shall have no
doubt of their success. A reduction
of their tax to so cents per gallon
two years hence when we have 150,-
900 900 gallons in bond, would afford
Il nice little stake of 800, 1000, 900, |
which would be quite worth playing
for. The repeal Of the entire tax
would then give them Il snug bonus
of $l35, 900. In the meantime they |
would risk hut little, because il the
market should break down they could |
probably bring in their own whisky |
tor less than the tax, and if it should |
not there is very little doubt that il |
would be able to secure the desired
reduction or rerea!, and in any event,
their whisky would, as we have seen,
rapidly increase in value from age
while the government would mainly
bear the expense of the process. In
view of the unequalled opportunities
which this bill affords for speculation
ut the risk and the expense of the
government, is it any wonder
that In anticipation of its
passage, the quantity Of whisky
in bond is increasing ut the rate of
10000, 900 gallons per annum during
the last five or six months, or that
an urgent necessity has been dis
covered for its speedy passage!