The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-05-10
To the Attorn ey-general:
DOES NOT BUILD WAREHOUSES.


Commissioners Mason Tells Something of In
terest to Sub-Treasury Advocates
WASHINGTON, Nay 9.-Some of the Farm
ers' 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 it is not the
province of the government to build ware
houses for any class of producers. to which
the advocates of the warehouse system
have replied that if tho government can
build warehouses in which to store whisky
there ought to be no reasonable objection
to make to the construction of warehouses
for grain and other products Of the farm
ers. Senator Cockrell who believed that
this notion was an erroneous one, sent an
inquiry to Internal Revenue Commissioner
Mason and has received the following
reply:
"Sir-I am in receipt of your letter ask
ing whether the United States government.
out OF government funds, has built any
warehouses for the storage of liquors or
distilled splits. and if so the number of
such warehouses. when built. the cost
thereof. and under what authority Of law
they were constructed. Ii not. to explain
who builds bonded warehouses for die
tillers. how they are bonded. and upon
what terms the spirits pIusS are stored therein.
I'm reply l wonld say that the United
States does not now and has never built
any warehouses for distillers for the
storage of their liquors and distilled
spirits: There is no law authorizing the
expenditure of the public money for this
purpose. All distilled spirits. with the ex-
ception of brandy distilled from apples.
peaches and grapes are deposited in q
warehouse provided by the distiller him
self. Section 3,271 of the Revised Statutes
provides that: Every distiller shall pro-
be situated on and to constitute part OF
his distIilery premises. and to be used only
for the storage of distilled spirits Of his
own manufacture, until the tax thereon
shall have been paid" Distillers of brandy
from apples. peaches and grapes. exclu-
sively. are exempt from the provisions Of
this statute. These distillers either pay
the tax upon the spirits soon as pro-
duced or the spirits are deposited
in bonded warehouse erected by
private individual. and stored there un-
til the tax becomes due. bnt in no case is
the government liable for any expenses in
Cured In the storing of distilled spirits of
any kind. Before dlstiller commences to
operate his distillery he executes O bond,
the condition of which, among other
Things. is for the payment of the tax upon
the spirits produced by him. When the
spirits are placed in the warehouse. which
he Is required TO provide. an additional
bond, known as q 'warehousing bond is
executed for the pay ment OF the tax upon
said spirits In addition to this the dis
tillery premises and apparatus arc liable
Tor the tax. anu the government has q first
lien upon the spirits themselves tor the tax
due thereon. Until the tax IS paid the gov.
crnment has the custody OF the spirits by
it's officers. In these bonded warehouses.
At the expiration of three years or sooner
If the owner desires the possession and use