Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-05-10
DUTY OF A DISTILLER
To Build His Own Warehouses as
the Government Won't Do 1t.
THE FIGHT ON THE SUGAR TRUST.
New England Manufacturers Want Iron
Ore on the Free List.
ANOTHER LITTLE BOOST FOR CLOTURE

WASHINGTON, May 9.-Some of the
Farmers Alliance men in the South and
West who are advocating the warehouse
system for adoption by the Government
have been met with the argument that 1t is
not the province of the Government TO build
warehouses for any class of producers, to
which the advocates of the warehouse sys-
TEN have replied that if the Government
can build warehouses in which to store
whisky there ought TO be no reasonable OBJ
lection to make to the construction of ware
houses for grain and other products of the
farmers Senator Cockrell, who believed
this notion was an erroneous one, sent an
inquiry to Internal Revenue Commissioner
Mason, and has received the following re-
ply:
Commissioner Masou's Reply.
OFFICE OF THE COMMISSIONER OF lNTERNAL)
REVENUE, WASHINGTON, May
Hon. F. NJ CockreI United States Senate:
SIR-I am in receipt of your letter asking
whether the United States Government, out
OF Government funds, has built any ware
houses for the storage OF liquors or distilled
spirits and III so, the number of such ware
houses, when built, the cost thereof, and
under what authority o. law they were con-
structed? II not, to explain who builds
bonded warehouses for distillers, how they
are bonded, and upon what terms the spirits
are stored therein and the revenue collected
thereon?
In reply, l would say that the United
States does not now. and has never built any
warehouses for distilers for the storage of
their liquors and distilled spirits. There is
no la W authorizing the expenditure of the
public money Tor this purpose. All distilled
spirits, with the exception of brandy dis
anDlaS
deposit ed in Il warehouse provided by the
d1stlller himself. Section 327l of the revised
statutes provides that: Every distiller
shall provide at his own expense, a ware
house, to be situated on and to constitute
part OF his distillery premises and to be used
only for the storage of distilled spirits OF his
own manufacture until the tax thereon shall
have been paid"
Some DistiIlers Are Exempted.
Distillers of brandy from apples peaches
and grapes, exclusively, are exempt from
the provisions of this statute. These dis
tillers either pay the tax upon the spirits as
soon as produced, or the spirits are de-
posted in a bonded warehouse erected by a
private individual, and stored there until
the tax becomes due, but in no case is the
Government liable for any expenses in
Cured in storing distilled spirits of any
kind. Before n distiller commences to
operate his distillery he executes q bond,
the condition of which, among other things,
is for the payment of the tax upon the
spirits produced by him. When the
spirits placed in the warehouse
which he is required to provide, an
additional bond, known as a "warehousing
bond" is executed for the payment of the
tax upon said spirits In addition to this
the distillery premises and apparatus are
lin bic for the tax, and the Government has
a first lien upon the spirits themselves for
the tax due thereon. Until the tax is paid
the Government has the custody of the
spirits, by its officers, in these bonded ware
houses
At the expiration of three years, or sooner |
if the owner desires the possession and use |
of the spirits, the internal revenue tax of 80 |
cents gallon must be paid.
Very respectfully,
JOHN w. MASON, Commissioner.