The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1888-07-31
THE WHISKY TRUST
Is Being Investigated by House
Committee.
Prominent Kentucky Distillers and Dealers
Favor Reduction-The Associa
ton and Politics.

WASHINGTON, July 27.-The house commit
tee on manufactures today began the investi-
CATION OF the so-called whisky trust.
j. NJ. Anterior, of Louisville, KY, presi-
dent of the j. NJ. Anterior company, was the
first witness. The company was not engaged
in distilling whisky, but in handling the
whisky Of q number Of firms who do distilling
business In their own names.
Witness said that the most of the large dis
tillers of fine Kentucky whisky entered into an
agreement by which they bound themselves to
produce no whisky in the fiscal year of 1888.
Some few large firms refused to sign the agree
ment aud there were about one hundred and
fifty very small distillers who were not asked
to signi it.
The agreement grew out OF the fact that
there had been very large over-production of
whisky, which could not be consumed in this
country, and which was exported to Europe to
find market, but no buyers having been
found, much of that whisky was coming back.
In 1888 and 1884 there was about 100000 gall
Ions produced each year; in 1885 about 10000
900; in 1886 about 100000 and in 1887 about
the same quantity. In order to pro-
tect the owners of this whisky from
the effects of this over production, the
agreement to suspend operations from July l
1887 to July 1888 was entered into. This
agreement, the witness desired to say, was not
in the nature of trust. There was no consol-
idation of property. The only organization
which witness knew of having ever existed in
the Kentucky whiskey trade was the Ken
lucky Distilers association, formed about 1879.
The object of the association was the consider
alton of the proposed changes in the internal
revenue laws and technical trade affairs. 1t
had nothing to do with production and the
only time the association took any interest in
politics was when, after there had been an
accumulation OF whisky, it attempted to have
bonded period extended. This failing, the
association soon diSbanded.
Witness said that on May 18th of this year
a resolution was passed at n meeting of Ken
lucky distilers to limit the production for the
fiscal year of 1889 to 100000 gallons, and a
committee was appointed to arrange for its
distribution among the parties 10 the agree
ment; but the matter had never been con-
summated and the probabilities were that it
would not be.
Though distillers of fine whiskies differed
very much politically, they all, witness said, as
q trade question would be glad TO have the tax
reduced TO nifty cents per gallon
Mr.. Atherton was then examined in regard
10 the production of alcohol and spirits, as dis
there was trust in this trade. He replied
that he belived nearly all the dis
tillers north of the Ohio river were
members of trust, each distiller having a
common interest in the business of all the
Others. The headquarters of this trust was at
Greenhut, of that place. The trust also in
Guided few distillers Of alcohol and cheap
whisky located in Kentucky, near Covington.
Mr. Athefton said that as some reference
might be made to the National Protective
association, Of which he was president, he de-
sired to say that that association had nothing
20 do with the manufacture or sale of whisky,
but was organized solely and entirely for the
purpose of opposing the enactment of prohibi-
tory legislation. The association sent out lit
erature, but has never sent a dollar into an
election district nor to q state capital.
w. II. Thomas, Of louisville KY, a whole
sale whisky dealer with trade of 10000 barrels
a year, testified that he knew of no agreement
among the distiilers of fine Kentucky whisky
other than that mentioned byi Mr.. Anterior.
Witness was not in favor of the repeal OF the
tax for the reason that every farmer with a
stream near his farm would go into the bust
ness and would ruin distillers by over-produc-
ton. With no tax on whisky, witness be-
ieved there would be ten times the amount of
il drank.