South Branch intelligencer. [volume] (Romney, Va. [W. Va.]) 1830-1896, 1889-08-02

FRIDAY; AUGUST ?. 1889.
TRUSTS & MONOPOLIES.
2 be Notorious Whisky Ring,
A o-rroN BAGeING COMBINATION
NUMBER Y.


shall devote single paper to these two
subjects Of In Investigation by the House com .
mittee. and whose operations may present
some facts OF interest.
THs wHisKY FRAUDS.
The great hisky Ring, which engross-
ed 60 large = SHIRE Of public attention 10 the
closing ears Of Gen. Grants admiuistrs.
tion, wss an association Of revenue officers
and distillers to defraud the government Of
the internal revenue tax upon distilled liq.
uors. Its headquarters were In ST. Louis,
and. il had brsnches In four northern cities
and In New Orleans. Secrstary Bristow do
eerves the credit Of breaking II up although
| its power was 90 great that for awhile IL de-
( fed the government, aud even in ito dying
throes it Effected HE Withdrawal from the
| cabinet. Is was . temporary conspiracy.
and had nc lineal or other connection with
existing combinations.
THs DisrILLERy coxbiNATiox.
Distilled spirits are with Us, as with most
4 OF the great nations Of the world a fruitful
source Of revenue. We impose on The home
product An internal tax OF Of ninety cents
per STANDARD gallon, which means mixture
testing fifty Der cent. pure alcohol. This is
tax OF from 300 10 400 per cent upon &C.
| tusl value. The tax on imported eprits is
| two dollars per gallon testing uinety-four
| per cent. pure alcohol, which Offsets the in
ternal revenue tax and gives real tariff tax
OF about 26 cents per standard gallon, or an
average much more than one hundred per
cent ad valorem Omi,,ing rye whisky, Of
which there lie moderate production in
| severai states. the general whisky produc-
ton Of the United States falls into two great
classes that made Ia Kentucky aud that
made North Of the Ohio river; or that made
for aging ard that which does not require
aging. The Kentucky or Bourbon whisky
made from corn, with an admixture Of about
one third rye and barley malt, is unfit for
immediate use as beverage, and the Blue
Grass expert disdains to touch II until it has
pnesed Its third summer and then aasffs IL
| with delight measured by lie Increasing
years The other grade, which includes this
great bulk Of the products, is not made for
aging, and is about as good when drst made
as ever afterwards. II is distilled from
corn, with the least addition or small grain
that will establish fermentation. Peoris,
Illinois. 10 the chief seat OF its production,
and most of the dis,ileries are scattered
through the states Of Ohio, Indiana ani II.
linois. In both grades OF whisky there has
been immense over.proiuciion In recent
years The Kentucky dis.Illers, after va;nly
trying to Ind or to create q foreign market
Tor their surplus, entered into an agreement
| whereby they covenanted with each other to
| suspend production for one year from the
ist Of July, 1887 This agreement WAS
Aligned BY most of the large dstiers Of Ken.
| lucky. 1t expired without renewal aud was
not trust, but q voluntary compact which
rested on the good faith OF those who made
1t, having no consolidation OF properties
under single control, and exhibiting it's
kinship to the trust family only IN its pur-
pose 10 limit or suspend production until
consumption could catch up with It.
THE WHISKY TRUST.
The distillers north of the Ohio river
| formed, in May, 1887, regular tr nat, called
| The Distill6rs and Cattle Feeders trust
Their agreement was, as testified by their
| pr esdeni, modelled closely after that If The
| STANDARD Oil Trust,' and is so like that
! agreement in its general scheme Of orgsni-
! cation that need not 60 :nto details.
The corporations whose stock holders had
| become parties to this trust numbered 81 on
the let day Of Janury, 1888, and IL has been
paying a monthly dividend Of one per cent
on its capitalization of 100000, 900 since
that date. The alleged reason for its for
10 aticn was the fact that brisk export de-.
mand for spirits arose in 1878 aud stimula-
| ted the building of rev distlleries and an
increased output. This demand fell of in
1887, and, alter trying vsrious pooling
schemes without success, the distillers adops
ted he Standard Oil plan. They have since
been running only snch hous sea as can man.
ufacture the most cheaply, having shut
down the rest. The headquarters OF this
trust are at Peoria, and it claims that IL has
not In fact increased. or attempted to ins
crease, the price OF its products.
As il began with a largely overstoeked
market, lis earliest efforts we're necessarily
directed towards maintaining paying prices,
while reducing production TO the volume OF
demand and the dividends it has been able
to decl are show that IL has let Itself down to
bard pan without shock or Injury II
may, therefore, be pronounced a safe and
promising trust. This whisky trust pro.
duces more than Que half Of the distilled sp:.
rits o. tie country, only the smaller part Of
its pr oduct being used for beverage primari.
". and it is easy TO sec that with the sur
plus product worked of 1t will have power
go to stimulate prices as to greatly increase
It's already handsome profits.
COTTON BAeGING COMBINATION.
When the cotton-gatheriug eeason
began last year there came no from
planters OF the South cry OF distress
and indignation Of a sudden and
mysterious increase In the cost of
baggiDg used by them in baling their
cotton. II VAS supposed at once
that q cotton bsgging trust had been
formed. This bagglng is made from
jute butts, or the butt ends OF juto
stalks, which are imported into THE
country from India and manufacture
ed in American mills. The price per
yard OF bagging had advanced over
five cents, or nearly doubled, oil
though the price Of jute butts was
lower than II had been for many
years. As il requires about a.
100000 yards TO bale the cotton crop
there was an evident scheme some
where 10 take from tue moager prof -
OF The Southern farmer the SUN OF
two and s-balf million dollars Of
extraordinary and unjust exaction.
Indeed, the farmer, OF every part
OF the country, is probably learning
that the combination or trust looks
with specially tender add waichful
solicitude after bis welfare, and is
gradually surrounding him With a
Gordon of 'pluck.me stores, which
will effectually save him from The
evils Of excessive or premature wealth.
Investigation, however, developed.
not cotton bagging trust, but an
i. a