Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-07-28
NATIONAL CAPITAL.
THE waIsKEY TRUST BEFORE THE CON-
MTTTEE OH MANUFACTURES.
A Shorter Production This Ysar-Ksssrs.
Atherton and Thomas Tell What
They Know.
nv telegraph 70 The plspatch.l


WASHINGTON. ID. c.. July 27.-Ghe House
Committee on Manufactures to-day heGan The
investigation OF the so-calIcd whiskcy Trust.
J. N. Atherton, OF Louisville. president OF
the J. NJ. Atherton Company, was The urst
witness. The company was not engaged IN
dIstiiing whlskey, but In handling wbiskey.
OF the number OF firms who do q dIsrliipg
business IN their own names. the witness
said that the most OF the large distlllers OF
fine Kentucky whiskey entered into an
agreement by which they bound themselves
TO produce 10 whiskey In the fiscal year OF
1883. Some few large frns refused to sign
the agreement, and there were about l50smsll
distilers who were not asked 10 sign. The
agreement grew out OF the iactthAt there mad
been large over-pToduction OF whisky,
which could not be consumed In this coun-
try. and It was exported TO Europe 10
End market, but no buyers having
been found much OF that whIskey was coming
back. In 1SS3JS4 there was about 100000
gallons produced each year; In 1885 about
10. 900. 900, aud In 1856 about 10000 900, and
In 1887 about the same qusntity. In order
TO protect the owners Of this whiskey from
the effects OF over.productiOn an agreement
TO suspend operations from july 1, 1887,
10 July 1, 1888, was entered into. This
agreement was not in the nature OF trust.
There was no consolidation OF property or
the merging OF interests. The only other
organization which the witness knew OF
having ever existed ia the Kentucky whls-
KEY trade was the Kentucky Distilers' As
soclation, formed about 1879. The object OF
this ASSOCIATION was the consideration OF
proposed changes in the iniernal-reyenue
laws and technical trade affairs. 1t has
nothing whatever to do with the production,
and the only time the association took any
interest In politics was when after
there had been a large accumulation OF
wblskey it attempted TO get the bonded
period extended. That effort failing, the
association soon afterwards disbauded.
The witness SAID that on May oath OF this
year resolution was passed At meeting OF
the Kentucky distillers 10 limit the produc-
ton for the fiscal year 1889 to 11,OOo.o90
gallons. and a commktee was appointed 10
arrange for its distribution ameDs the parties
to the agreement, but the matter bad never
been contaminated and the probabilities were
that 1t would not be. Though di,tiliers OF
fine wbi,keys differed very much politically,
they all, witness said, as trade question
would be glad 10 have the tax reduced TO 90
cents per gallon. The witness was then ex-
amined in regard to the production OF alcohol
aud spirits a. distinguished from the bey-
erage whiakey by Mr.. Breckenridge, OF
Arkansas, snd asked II there was trust in
this trade.
The witness replied that be believed nearly
all The distillers north Of the Ohio river we're
members Of a trust. each disliller having a
common ntereStin the business OF all Others.
The headquarters were 81 Peoria, and the
president vas II. q. Greenhut, OF that place.
The trust included few distilleries OF
alcohol and cheap whisky located In Ken
lucky near CoyingtoD. The witness said az
some reference might be maSe TO lhe National
Protective Association. OF which be Is presi'
dent, he desired 10 say before be left the
stand that that association had nothing 10 do
with the manufacture or sale OF wbiskey.
bat was organized solely and entirely for the
purpose Of opposing the enactment oil prohi-
bitory legislation. The association sent out
literature, but bad never sent dollar into an
election district nor to a State capital.
w. III. Thomas, OF Louisville. wholesale
whlskey.deaer, testified that he knew OF ho
agreement among dlstillers Of 1ne Kentucky
wbi,key other than that mentioned by
AihertOn. The witness was not IN favor OF
the repeal Of tSe tax on liquor for the reason
that every farmer with a stream near bis
farm would 60 INTO the business and ruin
the dIstillsrs BY oyer-productlOn. With no
tax on whiskey the witness believed there
would be ten times as much OF il drunk.