The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-02-19
ADrANcE IN BoURBov wHrsKEr.
Large Sales In Kentucky and sim higher
Prices Expected.

LOUISVILLE, Fob. 1.-THE market for Bour-
bon whiskey has improved. after five years OF
depression, unnumbered bankruptcies aud a
decline in prices to the lowest point for a gen.
Grafton. Now 1t seems the easiest thing in tho
world to sell either a distillery or its product
In the main the improvement ia due to the
formation of the 49,. OO0.O 0 Kentucky Distil-
leries and Warehouse Syndicate.
Prices have already shown u decided advance,
but they are still so far below the cost OF man
ufacture and the carving charges during tho
four years rinening period that distillers and
jobbers are predicting "A rise that will carry
them 100 per cent. higher. Orders began
pouring in with the first announcement OF the
completion OF the syndicate. Spectators from
Cincinnati and Chicago were quickly on the
ground and took all the round lots they could
get on which the demands OF holders we're not
too still. In a few days each set had accumu-
lated from $4,000 to 10000 barrels and retired
from the field. Others have taken their places.
and in the few days since the announcement OF
the syndicate at least 200. 900 barrels have
changed hands, representing a value of consid-
erably more than S3,O0O.OO0. Distillers and
one man closing out a lot Of 1900 last Week.
and q single broker ~efrectipg the sale OF
5000, barrels. nearly all of which, will be de-
Hyered within the year. Another distiller sold
100 barrels in one day. and 500 and 1000
barrel lots were hardly, regarded as excep-
tional by brokers who had not sold nifty barrels
a week before. The movement received impe-
tys last week when tips began circulating that
the Senate would pass a law extending the
period on which leakage and evaporation are
aTIEtT}s s sau I4 seSsh a sG f & INSTEAD tsch6ic OF i 10 En6 as now ow
erages. 10 per cent. on each barrel in seven
years, but heretofore the Government has COL
lected the taxes on. everything. according to a
tinal gauge made four years after the whiskey
has been put in bond, The tax on this outage
Of which the immense stocks of whiskcy dis
TILED in 1872 and 1893 have been almost unsql-
apresent to the owner Of 81 to So a barrel.
hence these goods have become, remarkably
s sr!a now t tRc e ones n Chiefly Ivy sought aaYn1t: af h1qeed' they
Though sales, have suddenly become 50
on tSPE Some Sef bra 1iSH IT It fhr as as hg yet 'f BEEN m no more
than . cents q gallon. and in none OF the
that it is the belief q many distillers that
more more For 81 one HosI ,tRi9r In IN ald Id t ont to Ii the e fact
that the market has been SO glutted that stocks
fore. The distillers buy Western corn and had
been SSSn f% Z t,sbd i until Idw last c6ry year q At at a 10 and ,I -
promises to &c, higher. an important element
Of cost in .distillation. Many distillers do not
this constitutes another reason for speculative
buying. The bulk of the product from 1876 TO
a aai' tie is s5 whis sSSt!ins 81 n is'a and an ef fssi E salem Sssn
sold heretofore at from 22r 70 275o cents.
t 4 II Sos 9o " t it t j S"1tl to tF Gigtii Is s to o5 sd s ssHsn
years ago. it can be seen how low prices still
are. For years production has been below con-
sumption. and stocks are now too small for
even moderate wants before the 1899 crop can
be properly refined and placed on the market
The most careful estimates made by the best
informed men in the trade are that the aver
900 to 2O.O0O.o0o gallons yearly, This con-
sumption is now increasing largely. and may
tRre as y eaFs a. The Ta;' 3. 598.d f2t t sS:l6 nssi in sT SoG Sf
on June 30. 1923. were estimated on the basis
the II 'H Whisky H 8 statistf"ian. "timate the real
amount on the basis, Of regaugcd. gallons as
,M'9 }oS ea!I9P 36,n T 81 U w9n Ma PPS S1tI t the s I6isS
even with the invisible floor stocks could not
this fiscal year estimated at only 100000
gallons, it can be seen, on what a good basis
better because of the fears that the big syndi-
cate will hereafter produce cheaper grades OF
w~hiskey. thus giving a fancy speculative value
Bourbon wh!skey is naturally one of the
most speculative of commodities. Leaving the
still at IA cost to the d~istillcr. Of from 10 to 20
cents a gallon. the process OF manufacture has
been only begun. Four years OF careful storage
are required to ripen the liquor for con-
sumption. and as it is. prone to evapo-
rate. TO- leak and to Q " waste s,or in other heGo mysterious nnors
nous in proportion to the cost Of dlstiLlation.
In addition a tax Of 1000 ner cent. is levied by
bonded warehouse. 1t is watched and handled
at every step by high %salaried and intelligent
care and distribution are so complicated that
special training is required in every branch OF
the trade. The consequences Is that when the
tedious process of ~ripening has been completed
Bourbon whiskey has to be sold at a price out
tiIi al 6rop2 Hls9I as t9 ' Il is sr' eo5nnssid enpenS hat at III the
snStIe Qualities which distinguish one brand
m meii It is an easy matter to give it a moro or
less fictitious value; II Bourbon whIskGy could
be used fresh nf fTQp tn the Isl still lu as ne sn t sGlTitS are are
this is precisely what cannot be done. T. is q
common thing to find one brand selling at
double or triple the price OF another OF equal
quality or to observe the same whiskey tuc-
tuating as widely from year TO year. For these
reasons d~istilers and dealers are alike accus-
toned to wide variations in values. The or.
binary profit resulting from four TO siK years
ton the price is constantly being Affected by
- fhc last big boom. in Kentucky Whiskey
cam in 1880 aud continued for several years;
Prior to- this there had been n long period OF
for ionr or I'VE years, it was felt that the bust;
ness was ruined. John G. Roach. dtstill er and
jobbrr, ]rclatesan instance 81 inc a1 Ia \ 6s t Mes
visited by George w, SwcaTlinGen, afterTard
one Of the most du &c gTI bs d% rTnn Mr IN R hen1
away in n hun. but being unable TO- 80 better
Efr,r"' iii" revival OF business which came
withthc resumption Of specie PAYMENTS reached
w y.ni g syd S mr. hoach sold Eiedt out his 383S-cent whis-
Key at $40 a gallon, The, demand became
/ IHnrulOnN, anu every ~ ~ "a
Kentucky sreculatcd IN whiskcy. Clerks, re-
taiitrndesmon. mechanics bought and sold me
nude money and was happy. Many a %dtstillcT
Who had been struggling with poverty found
himself made rich by the imitation OF values, II
seemed ns if there was not whiskGy enough tor
ali to trade in, and the, knowledge OF tha
th" 'di,tillerS to run their plants, DAY
and night and to build new, 4!stlllcries'
trent fortunes were accumulated in LeNing-
ron. Owensboro and l.awrcnceburg. ms well as
in Louisville, Nillion-dollar plants went ,uI
in each Of these cities, and the dlstillers led
eeIyeTybody in extrayaGance. One man built a
Si25,OOU private residence In a small village
nnd An their business ventures were pltched
on The, same scale; Then the Rr"9"Gti Tnsr Wa Is
iS0OO'O06 gallons in lSSO. anlto an average oi
more than 3o.0Ho'o00 for the s sHr's amI y5I nv:
we're swcpt away as quickly as they had beer
created. Production fell OF, ~ in 1850 only
13OOOOOO gallons were distilled,
things got SO bad that ia 1858 tho distlllers
became lrigEtcnrd,and, meeting IN t4iS G Ivy
u"ha Man was effective, and resulted IN "A grea'