New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-29
WHISKEY IN BOND.
THE QUESTION OF EXTENDING THE TINE.
PLEAS MADE BY THE WHISKY DEALERs-oFEEFRo-
pUcIIoN CAUSING TROUBLE.

THE QUESTION OF EXTENDING TIL lime
Pleas MADE BY THE wHIsKEY DEALERs-oVERTRo-
DUcIIoN CAUSING TROUBLE.
Dealers in distilled spirits watching with inter
est the fate Of the bill extending for three years The
period in which such merchandise can remain IN
bond. There are now in bond abOnt 10000 600 ga
Ions Of spirits upon which the Government tax OF 10
cents gallon is faiIg due or about 90 fall
due II IL claimed that il the bill now per9ng in
Congress faIls 10 pass an enforcement OF the tax
would bankrupt thousands OF dealers and cause
general ruin TO the whisktv trade. Preparations haye
been nade by large dealers In case no extension If
granted to evnde payment o. the tax temporarily by
availing themselves o. existing provisions OF the Law"
This can be done Ly exporting splits In bond and
then importing them, tho imports vii. he on
titled to remain three years longer in bond before
the tax will become due. Even should the measure
rass il IS Thought by some liquor merchants OF i'm
pOrtqnce that sue n movement viii take place to
considerable extent in rider 20 tho per cent
interest On the tax which The hill provides shall be
uaid tn spirits extended in bond, without allowance
for leakage.
prominent Broad street dealer said recently:
GAll The complications Of the present situation have
grown out OF the great Overproduotion of whisEey.
The Senate bill Is simply al attempted po!trono
cftir dav Of ut OF course il IL humau
nature TO wish for that, if eveHtnallv no por
u,sneht good is gained by IL. Prior osI9 the bond
period was one yoar ana nnd'r thc la the trade
had wort Ell 81 tisfa tOry In 1873. however, th"rd
q large production in excess OF the consump-
ton ana TO avoid the throwing OF sur lus apriis
on the mgr,e tho dlstlcrs went to Congress WITH
the Carlisle bill, wi lCh eEtehded the bond period
three years end allowed rhrinkage 10 j, ne.
dnctcd from tIe TAX of - gallons to the barrel
SAY Of 10 30 galous for the three years. At that
time Commssioner Raum slid 10 tho dstilers;
iul 9SElng for special legislation whch event
ually will work you injury You now nave
100000 gallons in bond and ONLY enc wears
taxes - pay. At the end Ot the extension 81 TINE
Won ask for, you probably viii have lOooonoOO
gallons in band. wth three years axes .ue ana no
better prospect for The rrade. Dir. Eaum warning
has been justified. The position OF affairs a. sab
Etautialiv WGHt lu SAID 10 Wou. he. Never thelf6s
the Carlisle bill was passed by Congress IA 1874.
For tho peNt three gears tneie was Tremendous
boou In the manufacture ~ 3ird spirits OF O. CRY
description. and dealers became infected with
Iahid speculative spirit Where dealer reedGi
100 hntrcis no bought 900 where he coI!d hanclo
1000 ne contracted for 10000 barrels. Toe oops
required for di>tilng purpoNG were bought ~
yrBr ahead. Before lNI9thc 1uDIal PRODUCTION mad
ranged 40 hom 30 400 600 ~ 90 900 900 gallons.
Since thdt year from $4,000 oO0 10 sj00O, 600 gal
Ions nave been distilled annually. The vealE cUIi-
Sumption is about 60 900 900 gallons ho excess Of
production j. clearly shown by the inCrraso of the
amount H. bond from H. 100000 gallons n SIS to
abunt 9o.cJp.OoU today. the snTpius has been al
most entirely vhiskev INTENDED for drinking con
sumption. There - practically no excess m the
product Ia ended 10 be used ia manufactures
Nov, what - the situation today The bond
period n expiring and tne Withc raw u 60 the whis-
key ~ bond would throw al amount on IL market
which world break prices disaetrOusly. IN fact.
the collect on e the s. 900 600 taxes legally owei
81 the Government on tho quantity IN bond would
bankrupt the trade. The pretsnt senate hul pro
poses 20 extend the boud period three wears longer;
"a, Wnat guarantee - thrre thdt me CONDITION OF
the over Jadc dealers vii theu DO imp wed May
not the Iua.arr Of the u'l suit on another GtWa-
latlpu 81 product ca hH the dFt,Iicr4 ana renewed
speculatlVc purchases bN dealers We trust taat 10
Will not Tho dlstiile-s in ienucssoe. kentucky
Pcunf Wv auii and Ohio have agreed 70 .uItIl their
fort f'fv In 2 fe
for large nroGurt estimate that the production
viii fl oft 70 SoOO 900 sal Ions A. tie most, prao
adult, rate them le' with consumption only !
1uOJlOJD .ail)ns n excess 81 tHis Uuautlty. what
SOFT OF 81 IMPRESSION Will iL3t rtsti,t'n mako on
the cuptaIDus stuck 10" iu hand 90 aud your !
friends must inbbe moro Freely, Il the trade IS he
saved!
should ths Senat, bill rot pass. whis:ey will !
be exported n bond "a Liverpool lId brought Ia X
wncn tie aomc suppl is reduced. Inc eIoota.lon |
viii bc mate is before tie boud period expires and
when lie goods are brought back they "ili be en- |
tied 70 remain Tor rn0thcr three years in bond.
Tue cost 20 10" mrrchah VII chly 20 the storage |
charges the in.urH nee ana the freight both Ways
Blu; the post poncncut of tho Government tax Will |
be elccto for about sir years and the charges mon
toned Will amount 10 only about lOCcnis gallon |
Then Suppose tho senate biz becomes law. By the !
port operation tlr dealer even then SAIL the
= per cent interest on the tau, inclullIg the !
interest on The tax on the leakage. Ihls leak |
age amounts TO m average Of two gallons 10 tho |
hnr rel each year. bat tho e. y'Tnu.en' Will impose |
the tax on 'bc quantity Cguged when h9 liquor is
Pot IN bond. before the shIntugc has taken place.
uder ans cIrCuui-taTcc look for the storage Of
American spirits abroad TO great extent for the |
purpose OF eyadlng as larg part OF the import rs
pussIbe. The gO"do VII not be- sent o. the BeImu-
das very eNtcnsivrly hecausc the warehouse fncIii
tics there limited, in-ui lance would be nit -
Obtain and the security would be small. There will |
bc no expectation To Canada either. rs the law of |
tho dominion prohibits frcs In portaions cNccpt IF
spirits mt m 100 gallons u the pFoknee We do |
not in America put up larger than fty gallon pack
ages
who aIo pushing tho ptnding bill most vigor-
ously ia Congress y"
"The distI!ers, because. although tho tax if col |
,ectcd now. will iai directly 0u the leYiets--the |
MI demcu-vhO aT" CtrrYlul virtually MI OF the |
. oc'c b. bond they me largely indebted 10 the |
Nhp would loso by heir failure or |
distress. 10 il not ssafY 10 plain the zeal OF
certain tOulrcs-Iucu in pressing the po udinR hIll
the result oi the use OF liiegtimato means hv the
di-t ers. The reason - TINT The hanFs al the
countrv-aud very largely no. Tho Nrri--haye nlade
heavy al luces OF ware 0uac receipts. In many
cis-. 100 FAR ucyoud tho value a. tie goods IN bond.
I II the shfs,cv TRADE he iWnctIllcI hv Con-fe3-
s.olal aciiun on indctou and there would be many
financial institutions CHAT would Ice compelled 10
succumh Some OF Our tougrcssmen have cOnsi .er
able banking interests or represent large banL ing
Constituencies.
THE most REMARKABLEr or ACCLDESTS.