Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-10-20
How a Combinatio1 is Able to Un-
dersell Rivals.
DISCHARGED COMMERCIAL TRAVELLERS
Saving Allowed the Price to Be
Greatly Cut.
PLEA FOR THE TRUS ITS

Mr.. E. s. Bradley of New York one of
the vice presidents of the American Dis
tilling Company and an official in other dis
filling companies, was before the industrial
commission today, and testified at length
regarding the distilling interests in this
country.
He explained the system of rebates for
merly used in the distilling trade and said
that it had not been followed by the
American Spirits Manufacturing Company
during the last four or five years. Their
system he said, has been for some time to
sell at so low a profit that other manufac-
turers cannot make any profit in their
business This allowed them a very small
profit. The American Spirits Manufacture
ing Company and the Standard Distilling
and Distributing Company, both in the
same combination, together manufacture
50 per cent of the spirits produced in this
country. OF that amount the Standard
Distilling and Distributing Company pro-
duces 20 per cent The chief competitor of
the combination represented by the wit
ness is the Merchants Distillng Company
of Terre Haute, Ind. The whisky COM
bination has four distillerieS running
at Peoria, ILL.,, and one at Terre Haute,
Ind. There are. he said, in the country
four or five other distilleries in operation.
The companies represented by the witness
make about three-fourths of all the Ken
600 gallons or one sixth, Of the rye whis-
kies made in the east
Recent Organisations.
Speaking of recent organizations in the
whisky trad, lie said the Kentucky Distil-
lery and Warehouse Company was organ
lied last February for the purpose Of pur-
chasing solely Kentucky distilleries. 1t had
$1O5OO.OOO Of preferred and S1S,500,OOO of
common stock. The Distilling Company of
America was formed about three or four
months ago for the purpose of purchasing
the four great companies controlled by the
combination, and 1t purchased on an aver
age % 90 per cent Of the stock of each
company. The Distilling Company of Amer
lea has $55, 900, coo of preferred and 10000,
900 of common stock, of which $23, 100. 600
of each class of stock remains in the treas
ury of the company. The balance was paid
| for the stock of the subsidiary companies
The purpose Of bringing about this COM
bination was to secure harmony of opera
ton, which had been more effective since
the combination was formed.
Methods of Paying Dividends.
! The witness examined at length in
regard to methods of paying dividends in
the various companies in which he is in
terested and which are under the control
of the pistlling Company Of America.
They had secured the charter of the Dis
filling Company of America in New Jersey
DtcduSe tllty lOuilu less IdAdtIoi there anu
immunity from liability on the part of the
directors. They were not obliged also to
publish reports under the New Jersey law,
as they would be in New York.
The witness said he thought the tax
spirits was too high. Instead of 81. 10 gal
ion he thought 80 cents would produce a
greater revenue and would be better. He
said his companies are greatly hampered
in their export trade They are not al
lowed to keep bottled liquor in bond ana
must send 1t out of the country immedi-
ateIy after it is bottled when intended for
export. The result Of that is to delay ex
ports two or three months.
Thousands Of Illicit DistilIeries.
The present method of watching distil
leries is such that thousands of Illicit dis
tillcries run and pay no tax. He thought
distilling should not be allowed except
where 1t can be done on such a large scale
that the government could afford to put a
man in and watch to see that the tax Is
paid If the tax on whisky were reduced
to - cents a gallon he thought it would
not nav to do illicit distilling. Illicit dis
tilling he said, Is done all over the coun-
try 1t is carried even in New York
CITY. During the civil war the government
raised the whisky tax to s. and the reVe-
rue he said ce tsed. Then it put 1t
hack to 50 cents and the revenue from
whisky went up He thought that expert
ence had shown that the greatest revenue
had been made from a tax OF 10 cents
gallon.
Saved by Discharging Travellers.
The witness said the combination in which