Omaha daily bee., 1894-01-14
Trouble Into Which the Administration st
Washington Has Plunged Itself
FINE SCHEME 70 RAISE DEALE3S' PROFITS
Adding a Mite TO tho Tax and a Mucisio to
the Value ut the Goods In Bond
Aiding tho Government
Song.
WlsHfSGToN BUREAU OF THE Rec, !
5l3 FOURTEENTH STREET, :

N'fN'@ h"''H'
IL threatens to make the greatest possible
trouble for those in power.
Unfortunately for the administration
ocariy every d~istiller, wholesale liquor
dealer and retailer Of the stuff Is a emo
crat, and all have been n~aggiDg for favors
ever since the work of compiling the Wilson
tariff bill was begun. They wanted some
thing more than class legislation and per-
ional favor. They demanded an
extension of the bonded period, which
means that after whisky is made,
~ a cost Of about 10 cents
gallon, 1t 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. Al present the taxes must be paid
within three years after it is made. They
demanded an increase Of the whisky TAX,
and that the goods in bond should not pay
The Increase. This would give them an OPP
portunity to not only make as n profit the
increase upon the goods in bond, but would
give them an opportunity TO run their distil-
leries day and night until the law went INTO
effect so as to get into bond as much more
whisky as II was possible for them TO manu-
iacture. With n large increase Of the tax
and an unlimited bonded period the trust,
the d~istillers and large dealers would be
sure If fortunes. They could simply sit
back and wait for the sale of their goods in
bond at the advanced price, knowing that
they had invested in every gallon but ID or
l6 cents, while they were sure to get, when
they sold at leisure and the market was
favorable, from two TO five dollars n gallon,
or an advance over the present arrangement
of not only the increase OF the tax, but the
natural increase which accrues TO aged
whisky.
How Could 1t BE Done?
There is no doubt that the administration
from the incipiency of this contest has ln-
tended to favor its friends, the distillers,
wholesalers and retail liquor dealers. Just
how they were to do it and not outrage
public interests was the question. Above
all else n 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 revenues
from whisky for Il long period of years. It's
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 the attorney
general, by Senator John Sherman in his
present capacity and as secretary of the
treasury, and by other nigh officials. that
1t was unlawful TO impose an increase of tax
upon the whisky in bond, as when whisky is
placed in bond a contract is entered INTO
by the government upon one SIDE ana the
owner upon the other, the latter giving bond,
that the whisky within three years shall
pay 80 cents a gallon tax. 1t would appear
TO be rs ridiculous to attempt to change any
other contract as this one. except by consent
of all of the parties TO the contract. 1t could
not be done by parties upon one side only.
So anxious, however, were the adminlstra-
tionists to favor their friends in securing an
extension of the bonded period that, upon
the request and recommendation of Secre-
tary Carlisle, the Insignificant increase of 10
cents q gallon was agreed upon, and In the
same connection it was proposed to make
the p0p1s in bOud IN U The increase of tax.
and to grant at the same time an eXtention
Of the bonded period to eight years, an in
crease of five years.
Suits the Whisky Men Exactly.
This action upon the part of the ways and
means committee and the recommendation
of Secretary Carlisle, which is responsible
tor ii, created great surprise in Washington,
and as it is looked into by members of con-
gress who have an eye to the law ana the
interests of the government, 1t becomes all
the more astonishing. If this action was
carried out it Is estimated that practically
all of the revenue from whisky would be cut
off till the liquor in bona had remained there
to the full limit of the bonded period.
Therefore tho proposition to increase the
whisky tax 10 cents n gallon was not in the
interest of revenues. 1t is learned that this
little increase was suggested by the whisky
men as an excuse for an extended bonded
period. They greatly preferred that the
goods in bond should not pay the in
crease of tax, but they we're willing that
it should be made to pay the increase if
they could get the extension of the bonded
period. Thus, while the secretary of the
treasury and the ways and means committee
were apparently oblivious to the whisky
mems interests, they had nothing else in
view. What the administration needs and
must have is an immediate increase of the
revenues. % course. an increase of 10 cents
u gallon levied upon the whisky in bond
would not induce the owners 10 take it out
of bond before the law went into effect, be-
cause they could leave the goods In bond for
another five years and paw less than 2 per
cent interest on their investment. That is
much cheaper money than can be found in
this country. An increase of, say, SO cents a
gallon would have forced the goods out of
bond and turned an enormous revenue into
the treasury at once.
It's a Mighty Tlcklish Question.
Just at this line the administration is in
deep water. 1t can not recede from the
steps it has taken for fear il will offend
whisky interests. 1t cannot proceed upon
the same basis, because the honest men
who have the interests of the government
in view see through the scheme to use the
little increase as an excuse to secure the
great aim of an extended bonded period, and
they will vote against it. To levy Il heavier
tax and not make the goods in bond pay il
- would be too apparent that whisky interests
We're the sole object i'll view, while Il greater
tax upon the goods in bond would deprive
the act of that favor TO the whisky interests,
which the administration hopes to accom-
plish. 1t would seem that the effort to Sc
cure revenue from whisky ana favor its
owners and makers would prove n disgrace
full failure. An increase OF the whisky tax
without an extension OF the bonded period
would, of course, vastly help the revenues of
the government, but it would be opposed by
the whisky men. The Voorhees, proposition
TO largely increase the tax, to extend the
bonded period, and make the goods in BOND
exempt from the increase, while Just the
thing which the dlstlllers and owners want,
Is so palpably against the interests of the
government that it would be hard to con.
ceive where IL will find any support from
men who have "A regard for the Interests of
he people.
Mr.. Henderson on Hawaii.
swell, there is not now a leg for the ad-
ninistration to stand on, - said Senator Man
derson TO Tn BEE correspondent this after
noon, in commenting upon the Hawaiian
message, when informed that Minister
Willis had at one time arranged to place
Queen Liliuokalani upon n United States
man-otwar at Honolulu ana afford her pro-
lection in event of a riot. This caps the
climax, ~ continued Senator Henderson, ''and
relieves the action of this administration
ana its representatives OF every possible
element of SNmDnIhV IL ia ngtnnich-