The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-11
POWER ASKED BY CARLISLE
He Wants Authority from Con-
gress to Issue Short-Time Bonds.
Sees No Other Way OF Meeting the
Monthly Deficit of S1O,OOO,OOO-
Colonel Hench for Pension Agent.
Special to the Indianapolis Journal

party as an organization Just now il
threatens TO make the greatest possible
trouble for those in power. Unfortunately
for the administration, a large majority Of
the distillers, wholesale dealers and retail
erS Of the STUFF are Democrats and all
have been nagging for favors ever since
the work Of compiling Che Wilson tariff
bill was begun. The wanted something
more than class legislation and personal
favor. They demanded an unlimited ex-
tension of the bonded period, which means
that after whisky is made. at a cost Of
about 10 cents gallon, it can be placed
in bond to ripen and cure and kept there
until the owner has sold it. when he may
take it out and pay taxes. At present the
taxes must be paid within three years
after 1t is made They demanded an in
crease Of the whisky tax, and that the
goods in bond should not pay the increase.
This would give them an opportunity to
not only make profit the increase upon
the goods in bond, but would give them
an opportunity to run their distilleries day
and night until the law went into effect,
so as TO get into bond as much more whisky
as it was possible to manufacture. With
a large increase Of the tax and an unlimited
bonded period the trust, the distillers and
large dealers, would be sure of fortunes
They could simply sit back and wait for
the sale Of their goods in bond at the ad-
vanced price, knowing that they had in
vested in every gallon but 15 or 16 cents,
while they were to get, when they
sold at leisure and the market was favora-
bic, from 81 to S. a gallon, or an advance
over the present arrangement of not only
the increase of the tax. but the natural in
crease which accrues to aged whisky.
f- l0t,1f ft,a 4r-o
tion, from the incipiency of this contest,
has intended to favor it's friends, the dis
tillers. wholesale and retail liquor dealers
Just how they were to do it and not out
rage public interests was the question.
Above all else a large extension OF the
bonded period, If not an unlimited bonded
period, was desired. The question was how
to achieve this without cutting off all rev.
enueS for long period of years 1t is said
that there Is now in and out Of bond enough
whisky to last the country a decade or
more. 1t has been held by Attorney-gen-
erals by Senator John Sherman in his
present capacity, and as Secretary of the
Treasury. and by other high officials, that
it was unlawful to impose an increase of
tax upon the whisky in bond, as when
whisky is placed in bond a contract is en-
tered into by the government upon one
side and the owner upon the other, the
latter giving bond that the whisky within
three years shall pay 30 cents a gallon tax.
1t would appear to be as ridiculous to at
tempt to change any other contract as this
one, except by consent of all of the par
ties to the contract 1t could not be done
by parties upon one side only. So anx-
ious, however, were the adIninistrationists
to favor their friends in securing ex-
tension Of the bonded period that, upon the
10 ion Af1y
Carlisle, the insignificant increase of 10
cents gallon was agreed on, and In the
i the goods in bond pay the increase of tax,
and to grant at the same time an extern
sion of the bonded period to eight years,
This action upon the part OF the ways
and means committee and the recommends
sponsible for it, created great surprise in
Washington, and as 1t is, looked into by
members of Congress who have an eye to
ment Ii becomes all the more astonishing.
If this action was carried out 1t is esti-
from whisky would be cut off till the liquor
| in bond had remained there TO the full limit
stion to increase the whisky tax 10 cents a
gallon was not in the interest Of revenues.
1t is learned that this little increase was
for an extended bonded period. They great
| ly preferred that the goods in bond should
not pay the increase of tax, but they were
willing that it should be made TO pay the
| increase if they could get the extension of
| the bonded period Thus, while the Secre-
| means committee were apparently oblivi-
Gus to the whisky mems interests, they
had nothing else In view. What the adj
| ministration needs and must have Is an i'm.
mediate increase Of the revenues. Of
course an increas of 10 cents a gallon levied
| on the whisky in bond would not induce
the owners TO take it out OF bond before
the law went into effect. because they could
leave the goods in bond for another five
wears and pay less than per cent inter-
est on their investment. Tnat is much
country. An increase of say 90 cents a gal
Ion would have forced the goods out of
bond and turned an enormous revenue
lust at this time the administration is In
| deep hot water. Ii cannot recede from the
steps it has taken for lear fear IL Twill, VIII offend offend
! the same basis, because the honest men
| who have the interests of the government
in view see through the scheme 10 use the
| little increase as an excuse to secure the
great aim of an extended bonded period,
| and they will vote against 1t To levy a
heavier tax and not make the goods in bond
ky interests were the sole object in view,
while a greater tax on the goods in bond
would deprive the act or that favor TO
whisky interests which the administration
hopes to accomplish. 1t would seem that
| the effort to secure revenue from whisky
and favor it's owners and makers would
| the whisky tax without an extension of
| the bonded period would or course, vastly
help the revenues of the government, but
| The VOORHEES, proposition TO largely in
| crease the tax to extend the bonded period,
and make the goods in bond exempt from
| the increase while just the thing which the
| distillers and owners want, is so palpably
against the interests of the government
that it would be hard TO conceive where it
| will find any support from men who have
regard the interests of the peODle"