The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-23
PROFIT IN MOONSHINING.
Illicit DistiIIers Worried Over Pro-
posed Reduction of Tax.

Washington Letter in New York Mail and
Express.
equally stealthy city cousins are in state
or anxiety just now over a prospective re-
dqction OF the internal revenue tax on dis
titled spirits. While the Dingley bill as it
left the House did not promise any reduc-
ton in the rate of internal revenue taxation
on distilled spirits, there is reason to be-
lieve that it will provide a reduction in this
line before 1t becomes law. Hence the
anxiety of a large class of men both in
cities and in the mountain sections of the
country who are now making large profits
by Illicit distillation, known in internal rev.
enue parlance as .moonshiners.
The average individual who is willing to
violate law ana take risk upon being caught
at it measures the risk he shall take by
the profit he can make, provided he does
per gallon on distilled spirits the incentive
TIC Illicit distillation is much greater than
was the case when the tax was 81 cents per
gallon. This fact, which has been recog-
nized by the internal revenue authorities
is clear to the mind OF the average layman
by the showing that there was a large IN
crease in illicit distillation from the mo-
nent that the tax on distilled spirits was
increased to $1.10 per gallon by the Wilson
Prior to the enactment of the Wilson law
the tax of distilled spirits was ~ cents per
gallon. The trainers of the Wilson law, de-
string to grant the request of the distillers
of bourbon WhiskeS for an increase in the
length of time in which spirits might re-
main in bond before payment OF tax, felt 1t
necessary to condone that onense by coup
ling some appearance of virtue with it.
They therefore by the same act in which
cents per gallon to the internal revenue tax
on distilled spirits bringing up the rate of
taxation to $110 per gallon.
The result of this increase of the internal
revenue tax has been as disastrous to the
revenue as was the reduction of the rates
of customs taxation. The internal revenue
receipts of the government have fallen
away nearly as much as did the revenue
from customs. The receipts of the govern
fallen from about $50, 600 in 1893 to less
than SIS 900, 900 in 1896 This is the more re-
markable when it is remembered that this
reduction followed an increase of more
than 20 per cent. in the rate of taxation
upon distilled spirits. The total revenue
from all classes of taxes upon manufacture
ers of and dealers in distilled spirits fell
from $94 720, 260 in 1893 to $50 670070 in 1896.
On the other hand, receipts from taxes
upon fermented liquors, beer, ale, etc, and
the manufacturers and dealers in the same
have in the meantime increased, the re-
ceipts from that source being in 1896 $685. =
1925 against $32, 548 983 in 1893, while
the receipts from taxes upon tobacco and
dealers therein have not materially changed
meantime.
If the actual consumption Of spirits by
! the people of the United States had been
reduced at the rate which the taxes paid on
| distilled spirits have been reduced since the
| enactment of the Wilson law, there would
be a strong argument against the reduction
| of the tax TO the old figures, and it is
! doubtful if Congress could be persuaded to
!
| reduction of internal revenue taxes paid
| does not mean a reduction in the consump-
! ton of distilled spirits. 1t simply means
| that, through the increased profit offered
| by Illicit diStillation, there has been d great
! increase in ''moonshining" since the enact
ment Of the Wilson law. This has happened
| both in the cities and in the remote coun-
| try districts Formerly nearly all Illicit dis
| tillation took place in the mountain regions,
| in stills secreted in out of the way spots,
which were operated without the llnowl-
! edge of the revenue officers of their exist
| ence.
Recently a new system has come into
! operation both in the cities and in the coun-
! try localities. a small. portable still has
| been put upon the market. which occupies
! but few square feet of space and can be
operated ina cellar or good-szed closet by
| using molasses as the material from which
| TO make the spirits. The sweepings and
washings of sugar houses and of docks
| where sugar is handled and Of the vessels
| in which sugar is brought 10 the ports OF
| the United States are al utilized for max
| ing alcohol by this process. The manufac-
turing of alcohol from molasses and the
| refuse of sugar houses. docks and vessels
has been so advanced that it can now be