The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-18
Change i'm Revenue Laws Urged So as
to Permit Transportation of Al
cOhOl in Tank Cars.
STATEMENT BY S, S. MCCLURE
WHY HE AND ASSOCIATES WITH
DREW FROM HARPER & BROS.
They Found 1t Impossible to Adjust
Some of the Questions Left Open
in the Preliminary Agreement.

WASHINGTON, Nov. 1.-THE industrial
commission has received from Andrew Car
negie promise to appear before the COM
mission in December and give his testimony
concerning trusts. Mr.. Carnegie's tesu-
mony will be the last taken on this subject
prior to the preliminary report to Congress,
early in January. John Wanamaker is ex-
pected to testify before the commission next
week on the subject of department stores.
Samuel NJ. Rice, president of the Distilling
Company of America, commonly designated
as the whisky trust was before the commits
sion to-day. He said his company controlled
about 80 per cent. Of the spirits distilled In
the United States, but that the company
had abandoned the policy of cutting prices.
There was no intention Of driving COMPETE
tors out of business, the intention being to
sell at a fair and sure profit, letting others
do as they might please in fixing prices.
Mr.. Rice gave the details of the organiza-
tion of the trust. saying 1t was formed from
the Distilling and Cattle Feeders Associa-
ton, the American Spirits Manufacturing
Company, the Standard Distilling and Dis
tributing Company, all of which were con-
trolled by the principal company by the
ownership of the stock. 1t had merely be-
come a clearing house for the other COM
panies. All the stockholders of these sew
eral concerns, with the exception of a very
small minority, had entered into the COM
bination with zeal. The parent company
also owns rye whisky dstillery at Minne-
apolis and the Hannis distillery. 1t makes
about 80 per cent. of the spirits produced,
he said, and controls an equal percentage
Of the brands of Kentucky whisky. OF the
capital stock of the company there had been
issued $31 $50 600 in preferred and $i6 2500 900 in
common. Mr.. Rice said he could not say
what amount had been paid to the organ
izerS of the trust, but, as it was a very deli
cate and important undertaking, he thought
they should have been well paid. He was
also unable to state what had been paid for
the Hannis rye distillery, but he considered
1t worth not less than $5,00O,O00. The COM
pany had made public statement of its
affairs, but its books Mr.. Rice said, were
always open to the inspection of the stock
holders of the company.
Mr.. Rice contended that the effect Of the
combination was to cheaper the cost of pro-
duction and also to lessen the price TO con-
sumers. "Our plan," he said, 'is to control
the business so to prevent overproduc-
tion, but we do not seek monopoly. Any
one is welcome to stay in the business. And
We do not cut prices, nor do we intend to
cut them. Our agents have strict instruc-
tions that point. We consider pro-
lection to be in our superior facilities, and
we do not fear new distilleries starting up
so long as We seek to make only reason
able profit" lie added that the company
now controls the output of the standard
brands of whisky, 'and," he said, I'VE in
tend to hold the production of spirits down
to the demand by holding our price down
| near to the cost Of production"
change of the revenue laws so as to per-
NIT the transportation of alcohol in tank
| cars was advocated by Mr.. Rice. With this
change he thought the United States could
supply the world with alcohol. He also
| thought that the whisky tax should be
lower