The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-07-02

WAT rs LAW AEFFEgT
DistiIlers viii Force a Test
in The Courts.
SITUATION COMPLICATED
Commissioner Of Internal Revenue Says There
is Grave Doubt as to The Constiiu-
iionality Of the North Care
lima Law.
Washington Post.)

4
h The Commissioner of Internal Revenue
anticipates a most interesting situation in
North Carolina as a result of the going
into effect today of the Watts law, which
prohibits existence OF grain or whis-
key distillery outside of the limits Of an
Incorporated town. There are now regis
tered 49S whiskey distilleries in North
Carolina and the large majority will be
affected by the Watts law if it is enforced.
Most of these are small affairs, which,
prior to the early 70's, were operated as
illicit stills" but which at that time
came under the supervision of the revenue
officers on the condition that past offenses
would be forgiven all who registered.
AFFECTS FEDERAL EMPLOYEES.
AT each of these distilleries the govern
ment is now obliged to maintain an off
cial, usually what is known as store
keeper gauger." These officials draw from
81 to 81 per day, most of them the latter
compensation, and many OF these have
feared that the operation OF the new law
would deprive them of their situations,
but there is grave doubt in the Internal
Revenue Commissioners office as to
whether the law will prove constitutional
or will be enforced to any extent Al
though a letter was sent out some weeks
ago lnquiring what the distillers would do
after the law went into effect, no reply
has thus far been received. and rot one
dlstIller has given notice of a change of
location. 1t - regarded probable that
test case will be instituted soon, and un-
til the result is known no government en-
ploye will be discharged.
1t is further believed that the State au-
thoIities do not realize the magnitude OF
the undertaking involved in the enforce
ment of the new law. North Carolina
whisky makers have the reputation OF be-
ing the most lawless OF any in the United
States. Notwithstanding the vigilance of
the revenue officers, last year it required
s., 600 taken from the fraud fund" to APP
prehend the illicit distillers, in addition to
the regular expenses. Eighty-three regis
tered distillers were reported for attempts
to defraud .he government, as against
eleven, the highest number ia any other
State, and 2S,949 gallons of whiskey were
seized because of violations of the law.
Under the provisions OF the law thirty-six
tracts of land have been seized by the In
ternal Revenue Commissioner in this
State alone because of alleged violation, as
against fifteen, the highest number in any
other State.
MAGNITUDE OF INDUSTRY.
The magnitude of the industry in fyorthl
Carolina is shown by the number engag-
ed in the business, 49S, as against 273, the
number in Kentucky, the State which,
ranks next. The men engaged in this bus
mess do not readily brook interference hy
Congressional or legislative enactment. and
the revenue officials fear that if any Sc
rlous attempt is made to enforce the Watts
law, it will cause serious trouble. and per
haps eventually result in a vast number
of illicit stills.
In addition to the number of whiskey
dlstillers named. there are also 500 fruit
dIstlllers'' who manufacture brandy, but
they are not affected by the Watts law
Most of them are farmers, and political
reasons are said to have prevented their
inclusion in the provisions of the new
measure