Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-05-19
THE WHISKY TRUST
More Testimony Given Before the In
dustrial Commission.
HIGH PRICES AFFECT PRODUCTION
In Some Respects Combination is
Desirable.
TWO OPINIONS EXPRESSED

The Industrial commission met today and
heard two witnesses in regard to the whis-
ky trust. Mr.. Martin r. Cook of New York
was the first witness.
The effect of the first whisky trust, he
said. was to increase prices. Under. the
second trust organized. with Mr.. Green
hut as president. a system of rebates was
established, under which those who were
loyal 10 ths trust in making all their pur
chases from il received the rebate.
while in case they failed to do so they lost
the advantage of these reductions. There
was also an increase in the price of the
product which resulted in some lessening
of consumption. a rebate of cents a
gallon was given to the wholesaler.
The Tendency of High Prices.
The tendency of high prices of liquor is
to make retailers purchase cheaper grade
of goods. In Pennsylvania high license
had had this effect. He did believe that
under the present tax of s1-1o proof gal
Ion for whisky more money is collected
than would be the if it were lowered to
- cents "A gallon. Under the present rate
the tax is well collected.
If the present tax ON alcOhOl Were low
cred to - cents Il gallon there would be a
very great increase in the amount OF SPIT
its used in the arts. but he Old not thihk
this increase would be enough to make up
the difference in the amount of revenue
collected under the present tax. The IN
crease in bulk would probably be about -
per cent The trust was satisfactory to the
trade until it began to put up the prices.
In the case of his own establishment. When
the prices were put up he looked around
with a view to putting up distiiery of its
OwH.
Capacfty of the DistiIIerics.
The whisky trust had dismantled num-
Der Of distilleries and he thought that the
capacity of all the dstilleries in this coun-
try at present is about double the product
that is turned out. The great profit of the
distillery was the reason for building so
many of them. His distillery, with ca
pacity of 1900 bushels of grain a day.
would yield an income of $4,000 or $4,000
a year if it could get 30 or 60 cents
gallon. The distillery was very profitable
when business was good. The trust was
formed on account of the competition in
price. Two years before the last trust was
formed no money was made by the dlstil-
leries on account of the competition in
prices. and THAI was the reason for its
formation. His distillery is today produc-
ing 10 per cent of the amount of spirits
used in this country.
Speaking Of the whisky trust he said:
IF properly conducted l am in favor of
In calculating the relative tax-collecting
ability of 81 10 and a 70 cents gallon tax
he said 1t should be feIneTn DereQ tldt Wnen
the S1.1O tax went into effect a great deal
of spirits was taken out OF bond, and the
tax was paid at the old rate of 10 cents
gallon. That resulted in a very small
amount of tax being collected for two or
three years afterward.
Export Trade Could Be Increased.
The export trade of spirits from this
country. he said, could be greatly in
creased if proper protection were given the
liquor trade. The best and cheapest spirits
of the world could be produced here, and
the United States should have the trade Of
the world. London is now the great liquor
warehouse OF the world because of the lib
erai laws adopted by Great Britain in refer
ence to that interest. There is such
thing "a bonded period in England. That
custom does not affect consumption at all.
Here the government throws as many OBJ
stacles in the way of the trade possible,
His distillery had three times attempted to
go in the export trade very extensively.
because of government obstacles which
eliminated the profit from the business.
When Mr. Cook said he would approve
whisky trust on the same line as the Stand
ard OIL Company, which proceeded on the
principle of securing small profits" a good
many of the commissioners smiled. In u
general way he said he thought the Stand
ard Oil Company sold on large market
and with a small profit, but he didn't know
what their profits amounted to.
He said that his distillery, costing s1J0,00O,
COulu produce ODe-ttnID OF tne product IN
the country. Ten such distilleries would
supply the country with all of the spirits
required, and a couple Of hundred thou
sands more would carry on the business, as
it IS done on cash principles The second
whisky trust was capitalized at 81, 900 900.
In the case of the trust II owned some val
liable real estate in Chicago, which increas-
ed the value of its property.
Mr.. Luyter's Testimony.
Mr.. Henry G. Lnyter of New York also
testified regarding the whisky interests. The
tax, he said, of 81. IL on whisky amounts to
"a tax OF 22O0 per cent on the value of the
raw product
The trust has some advantage over the
single distilery in which the witness was
interested, but although they scanned to
think they would drive him out of business,
he felt confident that they would not sue
ceed In doing He was one of combina-
ton of about seven distributors or whole
sal. dealers who themselves took the larger
part Of rhe product of their distiIIery, sell
ing the balance Of II easily within COM
paratively small circle.
In no place in the world. he said. does the
wholesale liquor dealer make so little money
as in the United States.
There will be no more witnesses before
the industrial commission until June, when
ths investigation of the trus Is will again be
taken up.
The commission has received letter from
Senator Kyle, in which he states that he
has reconsidered his resignation as chair
man, in view Of the request OF the commits
sion, and that he Will retain his present Of
ice the head of the commission.