New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-11-23
A DEAL WITH WHISKEY MEN.
HOW THE DEMOCRATS OBTAINED CAM
PAIGN FUNDS IN 1892
PROOF OF THE CONSPIRACY FURNISHED Bf IN
TERNAL REVENUE COMMISSIONER MiIhEKs
REPORT-THE GOVERNMENT NJ"
FOOTING THE BILLS OF THE
DEMOCRATIC NATIONAL
COMMITTEE.
fey TELEGRAPH TO THE GRiBuNr.l


Washington Nov. eff anything were needed 10
confirm the statement that the extension OF the
bonded period for distilled spirits was the result oi
contributors TO the Democratic campaign fnhu III
| 1909 that evidence is furnished by the report OF
the Commissioner of Internal Revenue. made pupHc
Yesterday The manufacturers of distilled spirits
have for years desired extension OF the time III
| which they might hold their goods in warehouses
/ without payment of tax. Appeal AFTER appear was
| made 10 Republican Congresses without success.
| Republican Presidents were urged 10 recommend
this action to Congress. but unsuccessfully Ihere
was a critical period in the history or the cam
paign of 1892 when Democratic funds ran low. The
managers bethought themselves at this moment
of the whiskey interestthe dlstling interest Inc
matter placed in the hands of one OF the most
astute Democratic managers. and the result was a
large contribution from the dis;illers, with us
tnct understanding that they were 10 get what
they had so long wanted-an extension OF the bonded
period-in case of Democratic success. Democratic
success followed the contribution. and the extension
Of the bonded period promptly followed Democratic
success. The extension of the bonded period Is OF
great service TO the manufacturers OF bourbon
and rye whiskeys. Whiskey which costs % cents
a gallon is worth 50 a gallon after remaining in
a bonded warehouse period of eight years. which
IL the time now allowed under the new law made
by the Democratic Congress In compliance with
the agreement of 1897. The dstillers of Kentucky
and PENNSYLVANIA. therefore. most interested
in the extension of the bonded period; for most OF
the bourbon whiskey is made In Kentucky and a
large proportion of the rye whskey in Pennsyl-
vana.
The interesting feature of Commissioner Miller's
report is the proof which 1t incidentally furnishes
OF the existence Of this conspiracy between the Dem
ocratic campaign managers and the distillers In
1892 The distiers knowing that If the Democrats
were successful in the election they could count
on an extension of the bonded period felt that they
were safe the moment the election In
doubling or rebing their stocks Of goods in bonded
warehouses; for with the promised extension they
would not be compelled to pay the tax until seven
or eight years had passed The fact that they fully
understood this situation and shaped their business
accordingly is shown by the fact that the pro-
ducton Of spirits in Kentucky in December, 1892.
the very month following Democratic success,
jumped from 1.5i371 gallons in November. TO 4o12-
ga in December. In January the production was va
This continued until June, when the usual CLOSING
down for the season occurred 1870, ,
That this remarkable activity In the production OF
bourbon whiskey by the Kentucky distillers mus;
have been due to the knowledge that they would &c.
shown by the fact that It was nearly 90 per cent
greater than in the 59gb That OF the
Corresponding months Of the yer Whfn & ots
ment that the quantity OF bourbon whiskey deposit
IN warehouses in the fiscal year. ending June 81 ss5
Ions in excess OF the preceding year, and far
greater than in any other year IN the nis'oty Va
whiskey deposited in warehouses In the year
than in the preceding year, and far IN excess &, OF
any other years record on the contrary; lne Se
posts of alcohol and cologne spirits in warehouses
vantageousy affected by the extension oil 'He
bonded period. 49,. 49,, ,,.,,,ors 20
II is thus perfectly apparent that the dstlers Oh
the country generally knew on the morning aiten
the election OF 1892 that the long exlensiSn
of the bonded period was TO take place LOT III 'n ne
very month following they began that record OF
which would be simultaneously affected by the
extension of the bonded period They dd not even
wait for the meeting OF Congress, when was al
ready pledged BY the Democratic managers 10 90
This work When Congress met i did the WorN
nromptly and even more generously IMAM was cHH
pected Nobody supposed that the extension "oIld
be as great as granted. 1t extended the bohitI
nsriod 10 eight years instead OF three years, tne
Term fixed by Republican legislation Inc result
was that the distillers were no longer compete
r. Withdraw their spirits at the end or the tnree-
vear neriod but waited their convenience ana tne
Huctuation of the markets for action during me
arst wear of the new law they withdre" Only 451o
81 gallons agalnr 1le 362 02 in the preceding year
The average monthly Withdrawals now are aoout
4 zoo O0O gallons against about i,oooVJ ulder ,ne
oId law The result IL that the collectlons OF IN
ternaI revenue under the new law nave laIIei on
enormously and the Government Is mus ,paEtns
no financial obligations of the Democratlc Ma
,ional Committee 10 the dislers by the REDUCTION
sn The amount OF internal revenue wnlch IL IS COZ
letting from them. even at the increased Ta'e per
gallon fixed by the new law