New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-07-28
THE WHISKEY TRUST IN THE DOCK.
HE INVESTIGATION BEGUN BY THE HOUSE

THE INVESTIGATION BEGUN BY THE HoUsE
COMMITTEE ON MANUFACTURES.
Washington July 27.-The House Committee on
Manufactures to-day began the Investigation OF inc
so-calcd whiskey trust and called j. NJ A'heron' vi
Louisville Ky, president Of the j. NJ Atherton COM
nanv The company he said was not engaged in dis
filling wnskey but in handling the wbiskey OF num-
Der of firms who do dstilllng business In their own
Names the product being controlled under an agree
ment in order to preserve the trade marks OF these
firms, which were regarded as valuable cnes. VII
ness said HAT most Of the largo dlsillers OF hhe
Kentucky whiskey agreed to produce no whlskey ID
1885, because of the large overproduction In 1901
30 900 900 gallons were produced and in 1882 about
the same quantity. AS the annual consumption Is
estimated at from twelve to fourteen million gaiohs
this whiskey could not BIO consumed and was cAporc
to Europe No buyers having been foand, much OF
that whskey coming back This agreement nc
continued was not in the nature of trust there was
merging Of interests.
witness said he did not believe there would ever
be any serious competition OF European dstilcrs with
American whiskey manuao turcrs for the reason mat
the United States the greatest grain country. III
the world and also had the timber for barrels right
at hand All dislers Of fine whiskics he sad
would be glad to have the tax reduced TO % cents
per gallon As to the production of alcohol ana
spirits as distinguished from beverage whshey, lie
said that he believed nearly all the diseis n0rth OF
the Ohio River were members of trust, each dstlllcr
having common interest in the business Of all the
Others. The headquarters was at Peoria, Ill, ana
the president was A. b. Greenhut, of that place.
Representative MISUNDERSTANDING the Internal
Revenue tax what is the cost of gallon OF whisky
laid down IN a bonded warehouse!
The Understanding that corn calls for 90 cents
a bushel rye for so cents and malt for so cents, a
gallon of standard Bourbon whiskey with interest on
plant would cost say 80 cents, and excluding Interest
on plant from 23 to 81 IL cents.
Mr. Buchanan-What would be the effect OF re-
oulring tie tax to be paid when the wbiskey Is pro-
duccd; that is, abolishing the bonded period
Witness-It would substantially destroy the manu-
featuring OF fine whiskeys and would lead to combina
| TONS
The National Protective Association, of which he
was president organized entirely TO oppose The
enactment of prohibitory legislation, he said.
T. W. Shelley, Of louisville, OF the dlstilling firm OF
f. T.. Miles 81 Co., said that he was chairman OF the
committee 10 secure signatures to the agreement to
limit the production In 1889 to ii 100000 gallons
Nine million gallons TO be distributed among
the signers in proportion to their capacity, While
900 900 gallons we're to be distributed IN the dscIc
ton of the committee among those WHO in previous
years had OverproductOn. The dstillcIS hcd baci
how much of this 100000 gallons each was 10 get
| W H. Thomas, of Louisville wholesale WhiShey
dealer with a trade Of 10000 barrels year, was moi
in favor of the repeal of the tax on liquor FOR tGe
reason that every farmer with stream near his farn
would 90 into the business and ruin the distcls by
| oyerproduction With no tax whskey witness
believed there would be ten times the amount OF II
| drunk