The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-11-25
A BIG WHISKY DEAL.

The report of the Commissioner of In
ternal Revenue. which has just been
made public. shows that the production
of whisky in Kentucky increased from
1.541. 81 gallons in November, 1892, to
4,072, 254 gallons in December. This was
just after the presidential election. For
more than a year prior TO the election
the distilling business had been very
dull. but during the first month after the
election of a Democratic President and
Congress the output in a single State
was nearly trebled. The report further
shows that the production of whisky in
January. 1898, was 5,375, 7O2 gallons, in
February 5.442.7 34 gallons. and in March
6~,175.4l9 gallons, or nearly five times as
much as 1t was during the. month pre-
ceding the presidential election.
Hereby hangs a tale. This e~xtraordi-
nary increase in the production Of whis-
ky was not because distillers thought
more whisky would be consumed under
a Democratic administration than had
been under a Republican. but because
they had a promise, in the event Of Dem
OSi SuCCccS III loJ-s VI lC6icidtiOh
which would practically place a bounty
on whisky and put an immense sum of
money into their pockets. For some
years past the distillers have been try
ing to get an extension of the time dur
ing which they might hold their goods
in warehouse without paying tax. I'm
der the old law the time was limited to
fAroo o,,I ~ ~ axnfva ffnn IF
that period the tax had to be paid and
the whisky taken out of bond. The dis
tillers had made repeated efforts under
Republican administrations to have the
bonded period extended without success.
During the campaign of 1892 they were
given to understand that If they would
make a liberal contribution to the Demo-
cratic campaign fund they should. in the
| event of Democratic success. ave the
long desired legislation. The c%ontribu-
ton was made, the Democrats were sue
c~essful. and in due time the bonded
warehouse period for whisky was ex-
tended from three years to eight. Tn
der the present law whisky which costs
% cents a gallon can lie in a bonded
| WdIcnOuSc eight ytdIS III PdS
| Of internal revenue tax, and at the end
of that period it is worth SO a gallon.
The distillers did not wait for the
promised legislation before going to work
to increase their output. They began
Immediately after the election. OF
| course. they did not know how long the
bonded period would be extended, but
- - A. A. n.~o@
cratic party to believe there would be a
material extension, every year Of which
would be money in their pockets. Hence
the great increase in the product OF
whisky during the months Immediately
following the election. This increase was
so great that the quantity of bourbon
whisky deposited In warehouses during
the fiscal year 1899 was over 1O.OOO. 600
gallons more than during the preceding
year. and greater than during any other
year since the internal revenue law was
passed.
The result of the extension of the
bonded period is that instead of the tax
on whisky being paid in three years 1t
may run eight. and the government be
kept out OF its revenue that much
longer. The Commissioners report shows
that during the first year of the new
law the distillers withdrew from bond
and paid the tax on 43.255,27 gallons.
as against 119. 362. O52 gallons during the
preceding year. The tax is paid now on
about $500, 900 gallons per month, as
against about $500, 900 gallons under the
old law. This accounts in part for the
large falling off in government v
nues and the accommodating deficit. The
diminished revenue from whisky is really
a gift made by a Democratic Congress
to the distillers In return for their con-
tributkon to the Democratic campaign
fund in 1892.