Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-05-16
REGARDS IT AS ILLEGAL
General McNultas Characterization of the
Whisky Trust
More n Matter Of Enforcement OF the
Law Than of Making II,
He Says.

the whisky trust. continued his testimony
for couple Of hours yesterday afternoon
after The Stars report was closed. He gave
large amount of information In regard
to the whisky trust. and said emphatically
that he believed that the whisky comblna-
ton, now known as the Dlstilling and Cattle
Feeding Company, is an illegal organization.
and would be so pronounced in the courts
of Illinois.
In reply to questions he indicated 81 num-
Der of changes in the revenue law which
he thought were necessary for the distil-
ling interests of the country and which,
were they adopted. would largely increase
the distilling industry without any percep-
tibe increase In the quantity of liquor con-
sumed over the bar. He said that a reduc-
ton OF the revenue duty from 1.10 to 50
cents q gallon would increase the output
from two to two and one half times this
increase going into the arts. He said there
are 900 Industries that would use alcohol
II the price were reduced. whereas the pres
ent duty practically prohibits its use.
He said the present incorporation of the
Illinois Distilling and Cattle Feeding Com
pany is in violation of the trust laws, as 1t
Is in restriction OF trade He said the pres
ent incorporation would not stand the test
OF the laws of Illinois.
Sugar and Oil Trusts.
When asked If his remark would hold
true in respect to the sugar and Standard
oil combinations, hei said he did not know
enough about either of these combinations
to pass any opinion on them but according
to the general understanding as to how
they are operated ne thought his remark
would apply to them. He did not wish
however, to venture an opinion upon n
state Of facts with which he was not ac-
uuainted. Speaking Of the laws against
trust combinations. be said:
Il think 1t Is more a matter of enforce
ment OF the law than of The making Of the
law. i do not regard some of these lftlus-
trial trusts as being as dangerous some
people suppose. because do not think 1t Is
possible for them TO exist any long time.
They can start their distilIeries and buy
hundred or two hundred distileries. but the
only way in which they can keep the mar
ket Is for them u keep the cost Of produc-
ton below what II can be kept by smaller
concerns. The moment they go above a
reasonable profit on the cost of production
competitive plants will grow up around
them like mushrooms. Distilleries will be
built faster than they can buy them out.
My opinion Is they can put distilleries at
Peoria and absolutely control the American
product by cheapening the production.
They cannot do 1t by cornering the market
and raising the price"
The witness had previously explained
why Peoria. being in the center of the corn
belt, near the coal fields and with an I'M
limited supply Of cold water had natural
advantages which permitted cheap produce
ton.
Restrictions Upon Disabling Indus
tries.
Gen. McNulta complained that there were
unnecessary restriction OF law upon the
distiiling industries.
These restrictions" he said, come down
from times when there was trouble and
complications in the dstllling industries
that no longer exist"
He said that the law should be changed
so that spirits might be stored in metal air.
ught tanks both In bonded warehouses and
In making shipments In this country and
abroad. He held that the absorption OF the
spirits by the barrel and the evaporation
that takes place caused a very great and
useless waste. He declared that the method
OF thc government in collecting the tax is
radically wrong. This tax he believed is
above a revenue-produeing point. which Is
manifestly unjust. A lower tax would in
crease the demand for spirits to such an
extent that the government would receive
more money than It does now from tax of
Sllo lie was satisfied that railroad fares
based on a rate of . to 21s cents per mile
would produce more revenue than 10 cents
per mile, because of the increased traffic.
For the same reason he believed the whisky
tax should be lowered
The law should permit whisky to be taxed
to accommodate the country to which 1t is
sent as Is done abroad. and such iegisla-
Il
OF the export trade.
Eject of a Lower Tax.
The lower tax would permit the use of
alcohol for manufacturing purposes in
many cases in which 1t Is now absolutely
prohibited, because of its cost He had had
list Of 1000 articles in which alcohol
could be used. but In which 1t is not used
because of the prohibited price placed upon
1t by the tax. The tax on the product of
corn is equivalent to a tax on the corn it
sell. one bushel of corn produces practi-
cally five gallons of spirits. The tax of the
government on that product is $3.50, which
Is equivalent to tax of $3.50 a bushel on
corn That prevents, the, corn from being
consumed n r as It othSyw would he be- The
grains that are used, Thu difference in the
tax of LILO and SOS eents per gallon does
not affect its use for beverages People
drink the same amount Of whisky with the
higher tax as they do, wh,n 1t is taxed at a
lower rate The difserep9e in consumption
is In Its use in the arts. ffIe would not adj
vocate drop of $1.19fto 30 cents gal
Ion because it would be difficult to convince
anybody that the results he anticipated
would be realized. He ABUSED dropping the
tax TO ~ cents, anu inoa short time the
results in the revenue coald be seen. That
would be sufficient DC. introduce its use in
many articles Of manufacture in this coun-
try that cannot use lit now.
whisky Not ad9lternted.
The minds of peoqde. he said. are now
filled with false notRsns about adulteration
of whisky. He ent3tained those opinions
himself at one time. He had gone through
establishments and examined the methods
of producing whisky Hs had reached the
conclusion that there is no such thing as
aduiteration of whisky. There Is nothing
to adufterate with except brown sugar and
distilled water. 1t is pure spirits. There
might be an adulteration by the use of
common alcohol, but there is only half a
cent gallon differencesin the cost of pro-
dnclng the two articles, and that is not
enough 10 warrant aduIteration.
he spoke of the internal revenue depart
ment and its relation TO distillers. He was
positive that In the big distilleries the gov
eminent was not cheated to the extent of
a cent That Is shown by comparing the
receipts of the government with the pro-
ouetlon OF the eistilleries. In the small dis
tiiierfes, such as exist throughout the
south, there Is an opportunity for evading
thA tax. but the nena ltx for such sioI,