Omaha daily bee., 1907-12-28
LESS CASH FOR GOVERNMENT
Decrease of Internal Revenue Receipts
in Nebraska District.
CLOSE OF D1sTuLERY FOR REPAIR
Loss TO the Government ON Report
for the Year Amounts 60 Two
Hundred and Ninety
Thousand Dollars.

"The fact that there has been diminu-
ton of approximately $4,000 in the inter-
nal revenue receipts for the Nebraska dis
trict during the year 1907 cannot in any
respect be attributed to the wave of pro-
hibition now sweeping over the country
said Special Agent Evans Of the internal
revenue department. The cause lies
wholly in the shutting down of the Omaha
distillery during the last few months for
repairs and overhauling.
This distillery pays to the government
a daily revenue OF $4,000, OF tax OF 1.D
on it's daily output OF about 10000 gallons
OF distilled spirits. when it is in full op-
Grafton. For instance, the tax paid by this
distillery alone in 1906 was approximately
100000 while in 1907 It was about s., 900,
so the reduction of revenue from this one
concern alone was S25OOOO, leaving the total
reduction from all other sources but $4,000.
Big PROFIT Even So.
There is a big profit in whisky with
even this high tax. About four and three
quarter gallons of whisky can be made
from one bushel OF corn, and with corn at
90 cents per bushel you see there is a little
profit in the business after all. OF course
you must take into consideration that 1t
requires about four years to produce the
distilled spirits from the original product,
and there is a shrinkage and evaporation
Of about seven gallons to the barrel Gorty-
seven gallons) during this four years
process OF aging.
1.-The tax on beer is about 81 per barrel.
There is about three gallons OF proof spirits
to the barrel Cs1 gallons) of beer. There is
however a difference between proof and
distilled spirits. If the spirits in the beer
were distilled spirits the tax would be $3.50.
so you see the beer men have a considerable
advantage over the distilled spirits makers.
The Omaha distiHery Is the only one in
this revenue district. but after the middle
Of January another distillery is to be es-
tablished at South Sioux City. with a ca
pacity Of 1000 bushels Of corn or about 1900
gallons OF distilled spirits daily. The near
est distillery to Omaha at the present time
! is the one at Oskaloosa, Iowa. which has a
capacity Of about $50 bushels of corn or
l.5OO gallons daily.
1 California wines Fortified.
"An California wines are fortified by
! brandy. which brandy is a product of the
grapes after the wines are pressed from
! the grapes and clarified. There Is no tax
on this brandy. which accounts for the
cheapness OF California wines. Most all
foreign wines are fortified by distilled spirits
which are largely furnished from the Peoria
distllleries and hence their higher prices.
'Denatured alcohol is not yet made at
any of the western distilleries. but If Is
Z possible that the new distillery at South
Sioux City may make II. The greatest
bulk Of denatured alcohol made in the
country is made at Peoria. At present
II is being produced from corn. none of
the cheaper products being used in its
manufacture by the disttlleries. There are
but twelve makers of denatured alcohol in
the country at the present time and these
are all connected with the large distil-
/ leries."