The Hawaiian gazette., 1902-05-23
NEW ENTERPRISE
FOR HONOLULU
Scheme by Which the lntsrss'
on $4,000 a Year
Viii be Saved.

Interested parties in Honolulu have
made application to the Commissioner
of Internal Revenue at Washington for
permission to establish a general bond
ed warehouse in this city, by which
means they expect to save consid-
cradle amount of money during the
coming years. The matter has already
proceeded so far that special ware
house has been constructed for the
purpose and the other conditions i'm
posed by Uncle Sam are now being
complied with.
One of the principal benefits to the
promoters of the scheme, behind which
are said to be number of VIII )lesale
liquor men. is that they can store whis-
ky on which no tax has been made,
and export it to foreign countries with
out the payment of the tax of sll0 per
barrel imposed by the United states
Government. AS matters now stand If
a Honolulu wholesaler sells a bill of
Whistles in China or Japan, besides
whatever import duty Is imposed by
those countries, in addition he would
be compelled to pay the tax on tie
manufactured article here. When once
the bonded warehouse is established.
whisky can be received in bond in Ho-
nolulu and reshipped without having
paid the tax of Sl.10 per gallon from
which export goods are free.
The bonded warehouse will be located
at the corner of Hustace and Dreier
streets, in Kakaako, where a building
has already been erected for such use.
The structure Is of concrete with an
ordinary frame roof, with but one door
and no windows in the entire building.
which is 100 feet long and 81 feet wide.
There is absolutely no way of enter
ing 1t except through the one door,
the construction being in this man
ner in accordance with the regulations
Of the Internal Revenue Department.
when once the permit to open the
warehouse is granted, which may not
be for several months, the entire pro-
jcct will be placed in the hands of the
local Collector of Revenue, who will
have absolute charge of the building
ard all its contents, not even the owner
being allowed to remove a single gallon
OF whisky without permission of that
official. a storehouse keeper and
gauger will be placed in charge of the
building and its contents.
The establishment of a general bond
ed warehouse will be good thing
| financially for the men behind it, 1t is
| To- be of 800 barrel capacity, with room
! for further increase to 400 barrels
! Nine hundred barrels means sc. 600 gall
| Ions, which at sl.10 per gallon, the
amount of the tax, will mean a consd-
cradle sum to the promoters. This does
not of course, mean that the tax need
never be paid, but it will allow a saw
ing of the interest on that amount,
nearly $4,000, until the whisky has
been taken out of bond. 1t will per-
nit also of a large amount of whisky
being kept on hand, and can then be
brought in by the ship loau, as the
liquor may be received from a bonded
warehouse a barrel at a time, If neces-
sary, paying the tax as it comes out
of bond. AS the tax Is also not paid
until the whisky is sold, the whole
saler will be given an opportunity to
take any advantage of a possible re-
duction in tax. which cannot be done
here at present, as the tax must be
paid before the liquor can enter the
| Territory. Under the new arrange
ment whisky can be shipped from the
still or from some other bonded ware
house directly to Honolulu in bond. the
tax being unpaid, a"d the barrels
bearing. only the warehouse stamp.
Only whisky in barrels can be received.
No bottled goods or fruit liquors may
| be stored in a bonded warehouse, and
the regulations of the Internal Reve-
U ppnD in n
etc, are very strict.