Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-03-24
ADRo1r BUT LAWFUL.

The story of the management Of whisky
in bond is not uninteresting. Between
1880 and 1882 the American distillers
manufactured more whisky than would be
demanded for many years. Whisky could
remain in bond three years before paying
the 90 cent revenue tax. Thus all made in
1880 must come out of bond before De-
cember, 1883. Most of it was in Ken.
lucky bonded warehouses. but its owner.
ship was represented in nearly every State
of the Union. Powerful efforts made to
extend the bonded period failed. To pay
the tax would, it was believed, ruin half
the liquor owners in the country, as the
first cost and the interest for three years
thereon was already locked up, to which
must be added the percentage of leakage
and evaporation. Money could not be Dor.
rowed readily on the whisky, because ad-
vances had already been made on it, and as
there is feur years supply on hand, the
interest would be too heavy charge for
additional loans. II. FL. Shufeldt & Co.
report to the Chicago Times that the
amount to come out of bond between April
and December of this year varying from
367, 900 to 2,2S5.000 gallons per montP)
aggregates l,Sl6, 23S gallons, and the tax
thereon will be $40, 634, GA. The tax on
whisky to come out in 1854 will amount to
$50, 600, 900. A very large over.supply is
in the line of sweet-mash WHISTLES, and these
do not improve rapidly with age. The finest
whisky costs at the distillery in Kentucky
but 20 cents per gallon. It is then Put in
bond for three years to age, when the 90
cent tax becomes payable, and in default
the Government will sell it. Now it has
been discovered that it costs much less for
freightage than the tax cost of 80 cents a
gallon to take the whisky out of bond for
foreign shipment. The law permits whisky
for expectation to go out free of the manu-.
facturers' tax, which applies only to liquor
for home consumption. Thus it can be
sent out of the country and time gained
for payment of the 80 cents tax, which
must be paid ultimately that is, it can go
out in original packages with unbroken
warehouse stamps and be returned on pay.
ing an import duty equal to the revenue
tax. On reimportation it can, however,
remain in a bonded warehouse for one
year, and on payment of ten per cent. on
the tax at the expiration OF that time may
remain in Government warehouses two
years longer. In New York the charge for
storage is 10 cents per barrel per month.
Bermuda and Honduras are favoIite ship
ping places for storage, as the temperature
is high and favorable to ageing, and the in
surance is but one-half per cent. per an.
mum, and at the former place there is no
tax on leakage. The freight out is one and
half cents per gallon and the same for re-
turn, and storage eight cents per month.
The total expense from and to New York
is but five cents. Or it can be shipped to
Liverpool and back at total cost of about
ten cents. From the west the freight to
the Atlantic is four cents or less. Thus
the whole cost at the outside is but small
figure. At the end of the year the
penalty Of nine cents gallon is to
be paid in New York. Thus the total
expense of gaining three years time
and over is about % cents gallon, to OBJECT
which is some material gain by reason of
sea voyaging and age. The whisky could
be sent into Canada at less cost but for
local regulation that no packages of less
than 100 gallons shall come in. The liquor
can only go to port for expectation by
way of bonded route-that is, a railroad
carrier gives bond to the Government in
double the value of the whisky, and is then
permitted to carry it. The bond is not re.
Leased until the liquor actually arrives in
the foreign port. The date of expectation
is stamped by Government officials on the
barrels and the warehouse stamps remain
unbroken, and thus Identification of the
packages is made easy. Large shipments
have already been made and others will go
forward from month to month as the bond.
ed limit expires. By this means the whisky
dealers will save themselves from excessive
financial loss, prevent surfeit of the mar
ket, and pay the Government tax. 1t is
therefore lawful and safe proceeding and
is the best thing they can do in the present
state of affairs.