St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-09-26
FRIEND OF WHISKY.
Dunnell and His Warm Rela-
lions With the Old Liquor
Ring.
He Reported the GLORIOUS
Bonded Whisky Bill to the
House.
Senator Window Opposed It
and Exposed Dunnell's Po-
litieal Trickery.
A Measure That Was Designed
to Defraud the Govern
ment.

from the committee on ways and means,
reported to the house the bonded whisky
bill, so-called. He made a lengthy re-
port recommending its passage. On
that day he moved that the rules be sus-
pended and the bill passed. Certain
members opposed to the bill insisted on
being heard. but the motion to suspend
the rules cut off all debate or remarks
by any one but Mr.. Dunnell. The mo-
ton to suspend the rules and pass the
bill prevailed. Congressional Record,
April 8, 1882, vol. SO, pages 2540, 2541)
When the bill reached the senate it
was met by very emphatic opposition.
Senator Window stated that he would
prove from official statistics that the
statements in the report made in the
house (by Mr.. DunnelD were untrue.
Congressional Record, June Is, 1882,
page 1926, vol. 55.)
Senator WINDOWS speech was long.
The following extracts from 1t show the
nature and effect of the bill:
Mr.. WindOm-Mr. President, the re-
marks L shall make upon this subject
will, at the present time, be confined
chiefly to the bill which has been dis
cussed by the two senators from Ken
tucKy, and at some subsequent part of
the discussion | may also refer to the
amendment reported by the committee
ON finance.
81 protest against the passage of the
house bill on the general ground that it
is unnecessary, unwise. dangerous and
wholly indefensible legislation. In sup
mort of this somewhat
SWEEPING PROVOST,
Ispecify and shall endeavor to main
tain the following objections to it:
"FirSt-There is no necessity for its
passage at this time.
''Second-It will aggravate and greatly
augment the very evils it processes to
cure,
''Third-It proposes partnership be-
tween the government and the owners
of whisky now in bond, or hereafter to
be bonded, whereby the former is to put
in two-thirds of the capital, assume all
risks and bear all losses, while the latter
is to receive and enjoy all the benefits
and profits of the business.
''FOurth-It wantonly surrenders
bonds already given for the full amount
of S76,000,000 and substitutes new
graduated bonds which may not amount
Ions now in bonded warehouse.
''Fift hit invites and encourages i'm
menSe rings and combinations danger
Gus to the revenues of the government
and wholly in the interest of specula-
ton.
Il invite the attention of the senate
briefly to these propositions in the order
just stated.
'First-There is no necessity for the
passage of the bill.
II am aware that it was given preced-
ence over other measures and rushed
through the house of representatives
upon the remarkable statement, by
many supposed to be true, etc.
n
"Third-The bill proposes a partner
ship between the government and the
owners of whisky in bond or hereafter
to be bonded, whereby the former is to
put in twO-thirds Of the capital, assume
all risks and
BEAR ALL LOSSES
of the firm, while the latter are to put in
One-third of the capital and receive and
enjoy all the benefits and profits of the
business.
1.-THE proposition distinctly made by
the house bill and vehementIy urged by
the senator from Kentucky (Mr.
Beck is:
''First-That the government shall as
sumo the risk of loss from fire or other
casualty.
''SecOnd-Pay the expense of guard
ing the property for as many years as
the owners may desire to keep it in
bond in order to ripen their whisky and
increase its value from age.
''Third-That the government shall
allow the owners of whisky the use of
its capital, without interest, for an in
definite period, to be determined by
themselves. by pOstpOning the collec-
ton of its tax to suit their interest and
convenience.
"Fourth-That it shall allow the own
ers maximum legal leakage twice as
great as the actual loss, and amounting
in eight years to thirteen and half
gallons on every barrel of forty gal
lOns-eaual to One-third of the entire
quantity
For all this the government is to re-
ceve no profits nor any cOmpensating
advantages whatever, but it is to be
permitted to draw from the firm, at such
time as may suit the convenience and
interest of the diStiller or his vendee,
only so much of the remaining two
thirds of its original capital, after de-
Quoting leakage allowance, as may not
have been stolen, burned or otherwise
destroyed during the term of partner
ship.
"a brief statement of the facts will
show how this transaction will stand
financially at the end of eight years. 1
assume that period because the legal
leakage allowance ceases at that time.
I will also assume that the
TAX ON WHISKY
now in bond will mature on an average
of two years, and will therefOreumake
nv calculation as to financial results for
"There is now in the bonded ware
houses about 100000 gallons of
whisky, on this the tax amounts to $780,
O,000. The cost of manufacturing this
whisky is, as near as L can learn, from
% to As cents gallon. The owners,
therefore, would have capital invested
of about $50, 100000, while the govern
ment would lave about S76,500,G00 in
the partnership business. The interest
on SIC, 5OO,O 600 for SIX years at 80 per
cent. amounts to Sl5,OOO.OOO. The leak
age allowed by the bill being SO per
cent, while the actual leakage is not
more than half that amount, we may
add to the probable losses of the govern
ment 161s per cent upon the S5,00O,000
gallons now in bond, which amounts to
l4.OOO.OOO gallons, or S12,600,0O0. So
that the total probable loss to the govern
ment from both causes upon the
amount now in bond would be about
S27, 500, 600 within the next eight years.
Add to this the salaries and expenses
of the government agents in guarding
the whisky for the benefit of the OWL
ers, and from fire and other casualties,
and you have some idea of the financial
xo,,,Itr ,ybioh tho trnyprnmADt NAV an