The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-07-28
,pcc being that the value of the Bourbon


producers OF the other grades, nor was there
any connection between the Kentucky dis
filters and those who made substantially
the same kind of whisky in Pennsylvania
or MARYLAND. In reply to Mr.. Bacon, wit
ness said that most OF the large disullcrs OF
Kentucky whisky entered into an agree
ment by which they bound themselves to
produce no whisky in the fiscal year 1888.
Some few large firms refused TO sign the
agreement, and there were about $50 very
small distilleries who were not asked to
sign the agreement. The combined pro-
duction of these non.signcrs was estimated
at 81, 500, 600.
The agreement grew ont Of the fact that
there had been very large over produc-
ton OF whiskcy. In 1881 32,0O0,0O gal
Ions were produced, and in 1852 about the
same quantity. As the annual consump-
ton is ESTIMATED from l2,0OO,OpO to H.
OO0, 900 gallons, this whisky could not be
consumed, and was exported 10 Europe to
find market, but no buyers having been
found much of that whisky was coming
hack. In 1883 and 1884 there was about
1000 600 gallons produced each year, in
ASS about lOOW, 900, in 1886 about 49,
900 900 and in 1887 about the same guam
tiv. In order TO protect the owners ot
this whiSkcy from the effects OF this over.
production the agreement Ia suspend OPP
erations from July |, 1887, 10 July |, 1883,
was entered into. This agreement, witness
desired 10 say, was not in the nature OF
trust there was no consolidation Of prop
erty for merging of interests
The witness stated that he did not be-
lievc there would ever he any serious com
petition Of European distillers with Amer
lean whisky manufacturers for the reason
that the United States was the greatest
grain country in the world, and also had
the timber for barrels right at hand.
Though dis,ilcrs OF fine WHISTLES differed
very much politically, they all. witness
said, ~ trade question, would be glad TO
have the tax reduced 10 so cnis per gallon.
Witness was then examined with regard
10 the production OF alcohol and spirits, ~
distinguished from beverage whisky, by
Representative Brccknridgc, Of Arkansas,
and asked II there was trust IN this trade.
Witness replied that ho believed nearly all
the distillcrs north Of the Ohio river were
members oi u trust each disiiler having n
common interest in the business OF all
others
The headquarters was at Peoria, ILL.,,
and the president was IL. u. irccnhut, Of
that place. The trust also included lew
distillcrs OF alcohol and cheap whicky 10.
Gated in Kentucky near Covington.
Representative buchanan 80 Excluding
the internal revenue tax, what is tho cost
ola gallon Of whisky laid down in bonded
warehouse
The Witness That depends on q variety
Of factors, which vary considerably. but ~.
suming that corn sells for ~ cents a bush.
al, rye for 81 cents aud malt ior 30 cents n
bushel, a gallon OF standard bourbon
whisky, with interest on plant, would cost
20 cents, and excluding interest on plant
from - To "a cents.
Representative Buchanan What would
be the effect OF requiring the tax 10 be- paid
when the whisky il produced that In, abOl-
ishing the bonded pcriod2
Wiinc~ II would substantially destroy
the manufacture ot line Whiskics, because
OF the increased cost OF the WHISTLES when
they wcT M for use. growing ont OF the
fact that foriy-siN gallons that ovapJmtcd
would b. q taN-paid gallon aud because Of |
the heavy expense of carrying the whisky |
for several years, insurance, etc. The |
amount oi money tina, would Ice required |
In the business would bc ~ great that no |
distillcr could do much unless hc was a
millionaire. Such Law would certainly
lead 10 combinations, thew. would W. "o
other method oi handling the business.
and rich combination would soon absorb
II all.
Representative Buchanan-Thc makers
Of peach and apple brandy are not allowed
90 brand their prUducti
Witness That NAV be because OF the
smalncss Of thc business.
Witness said that NJ some reference had
been made to the National Protective asso.
citation, OF which hc W.. president, lac lie.
sired 10 say before hr lett the stand that
that association had nothing Co do with
the manufacture 90 sale ui whisky, but
was organized solely and entirely ior the
purpose oi opposing the enactment of pro-
hihltoty legislation, The association sent
out literature, but had never NJ dollar
into an election district nor to a state
capitol.
Mr. I. W. Shelley, II Louisville. said
that be was chairman Of the committee to
secure signatures To- the agreement 81 limit
the production IN 1851 90 ll,UODOn gal.
Ions Only about - per cent oi thosc
who signed the lsSS agreement had signed
the nov. by the 1881 agreement p,Ul1,
600 gallons II the production wcr 10 be-
distributed among the sirucrs Ia proper.
ton b. their capacity, while 2,OnOOJ Wcrc
left 20 b. distributed IA the discretion OF
the committee among those who in prc-
vious years had not oycrproduccd. The
distillcr. held back from signing ihr agree.
ment until they could find out how much
OF this 2.OOO,VOo gallons each WIS to get
W. a. Thomas, oi louisville. testified
that one ot the reasons iur tie export OF
whisky Ia Europe was that hc and other.
l.. 4 u a. a.
foreign compound liquors, aud thought
they might make market Tor u Ia Ia.
rope. Ninety pCr cent Ut the whisky OK.
ported WIS owned hy wholesale dealers.
aud be- believed that II thuy all united
they could build up a big trade in Euwpv
lie was not iu favor oi the rrpri ui Ia,
tar on liquor ior tho reason that ever,
farmer With stram near biz farm WuuIi
20 into the business AMI ruin thr disliIlru
by ovcfpwiurtiUn With ub tax ~
whisky be- believed ihov would be- tci
times the amount IT u drunk.
Interstate Commerce amendments.
WAImyGroV, July - Although IN
House committee on commerce ha. alrvul
directed a report to be- made 60 thu lluu.
on the Senate hiIl 10 amend the inlcu'at
commerce ac', the subject. as rc0p,nc
this morning ipr the purpose of ruahln
Representative O'Nyil. Of rcnusylyuia. q
offer an additional amendment pr1,ljin
that after ninety DAYS from the passage ,
the act II shall De- unlawful i1r any CON
mon carrier 81 engage in tho tmuspuIiltiu
OF passcnern " property between The ~,
eral States and lcttiiontiD, Ui the Unite
States, ~ between auy place In thc Unto
States and foreign country, over an
route which includes as a part thcr'ui
.tlssuN ~ .Hf.V a..