The times., 1899-05-14
THE WHISKY TRUST.
Interesting Testimony Before thr
Industrial Commission.

The whisky trust was the subject of in
yestigation yesterday before the Industrial
Commission, the principal witness being
c. c. Clark, prominent distiller of Pc
oria, Ill.
Mr.. Clark has been connected with the
whisky trade since 1873 and gave a very
complete history of the trusts and combi-
nations in that business. He said that as
early as 1870 many of the distillers north
of the Ohio River entered into an agree
ment to limit their production in order to
keep up prices. From that time until 1887
there were frequent combinations and
pools formed, when at the latter date the
Distillers' and Cattle Feeders Trust was
organized on the plan of the Standard Oil
and Sugar trusts, and in 1890 this was in
corporated with capital stock of S25 OGO,
600. In two years the trust had control OF
all the principal distilleries in the coun-
try. The combination soon raised the
price of spirits 20 cents a gallon, which
caused falling off in the amount OF sales
to such an extent that it was decided to
lower the price. About this time the At
torney General of Illinois brought suit
against the trust on the ground that it was
Illegal, and soon afterward the New York
courts decided that the sugar trust was
an Illegal combination. This caused the
! whisky trust to dissolve in order TO pre-
vent a similar decision being made against
it. In 1895 it was reorganized under the
name of the American Spirit Manufactur
! ing Company and incorporated under the
J laws of New York. The following year
Z the case against the old company in 1lli-
nois was decided. The trust was declared
/ illegal and its charter annulled
| Since that time there have been several
! other combinations in the business, in
a
! March last there was proposition on foot
to make one grand organization of them
ALL but as yet there has been no agree
ment on this point. Mr. Clark was a
I member of the first trust, but since that
! time has conducted his business independ-
/ emily of organizations When questioned
on this subject he said that he became a
member OF the first organization on going
into the distilling business. The induce
ments to do this were the representations
of larger profits made by the promoters of
| the organization and also the arguments
of intimidation which they used. For a
time, he said, his profits were greater than
| they would have been otherwise. His dis
tillery was eventually stopped by the trust
and he was given employment in several
official capacities He went out of the
trust by selling his stock certificates when
they were at high price. He then leased
distillery, which he is now operating
Several attempts have been made to buy
him out, and finally the combination
bought the property, and at the expiration
of his lease, in four or five months, he ex-
poets to be closed up.
The following statement with reference
to the trust investigation was issue by
the Commission yesterday:
The Industrial Commission in its inve .gatiol
of trusts and industrial combinations shes T.
secure the fullest and most trustworth. informa
tion on the subject and TO consider carefully tn
suggestions of those interested in securing wis
| legislation.
To that end the freest communication of fact
and views is asked from all persons interested
Communications should be sent TO the secretary
United States Industrial Commission, Washing
| ton, ID. c.