The Durham recorder. [volume] (Durham, N.C.) 1879-19??, 1910-06-02
AFTER "sokAcE" COMPANIES.
Whisky Men Hope That Tax win
BE Put on Them.

Whisky Men Hope That : Tax viii
BE Put on Them.
Washington, June The whiskey
interests OF the country, which have
been sorely tested by the United
States government through its enforce
ment OF the pure food laws. since the
administration Of President Roosevelt
until the present time. have. to great
extent, enjoyed their first pleasant
smile within the past few days. Though
some Of the whiskey interests are
stsll wearing the mark Of defeat. they
JON In with the throng In celebrating
victory which seems imminent BY
reason of a decision which Comznis.
sioner of internal Revenue Cabell u
about to make public.
In the first place the "sokage" or
salvage" men, as they are known in
the whiskey industry, are up against a
fight for their very existence. These
salvage" men. who have enjoyed a
long period of business activity. have
in the past been able to place prod
uct on the market from which large
returns were obtained and which cut
into the regular whiskey interests to
a heavy extent. {.
On investigation BY ofhcers Of the
internal revenue office" It was found
that the 'sokage" companies were OBJ
tanning their product at very little
cost and selling 1t In the market With.
out paying a license to the govern
ment. Naturally. every regular whis-
key man was interested in seeing
these companies put out Of business
and readily gave all the information
necessary to the government officers
when requested. The investigation
developed the fact that the income
from this business amounts 70 several
millions Of dollars year.
Inquiring into the methods employ
ed in obtaining this whiskey and how
it Is that no revenue tax has been re-
CURED by the government. revenue Of
ficers found peculiar situation. From
Kentucky to every state in the union
where whiskey is sold investigations
were made, and In short review II
was found that large trust or mo
nopoly existed which controlled abso-
lutely the entire trade of what be
came known at "a sokage trust"
The matter was simple In the ex
IRENE. The company obtained OF
bought from wholesalers. retailers. dis
tilleries or rectifers empty barrels
whether charred on the inside or not
In which whiskey had been stored
These were sent to central point
where. through steaming process tbs
whiskey was extracted from the bar
rel. In this way 1t was estimated b,
revenue officers that at least one gal
lon Of whiskey was extracted from !
charred barrel and about haK galios
from a barrel not charred. The Wills
key was then placed on the markc
In bottles branded under high-sound
ing name and sold at a good price.
The question when presented b
he commissioner Of internal revenu
by the regular whiskey men quickl
caught the commissioners attentor
not only from the standpoint OF th
vast industry which was springing .
: TO injure the regular whiskey intei
ests land on that he had little to say
but from the viewpoint that million
LOT gallons of whiskey was being pu
Ion the market every year which al
not pay tax, and consequently n
suited In loss Of just so much rev
Inue to the government.
Figuring on the basis on which II
\ Legitimate" whiskey man operates.
! lis estimated by the internal revenu
office that at least s250.000 per annul
will be collected by deputy revenu
agents throughout the country an
added to the regular revenue receip
I II tar Is placed upon this product
The "sokage" companies, howeve
4 have filed a brief with the commi
sioner OF internal revenue protestir
4 against the imposition OF such a q
on the ground that the tar for u
4 product which they extract from u
barrels has In the first instance be-
> paid by the original dealer from who
the barrels we're obtained. and III
' the only tar which can rightfully
Imposed by the government Is one
= either a rectiner or distiller. Thl
\ Of course. would only amount to a Il
7 hundred dollars year instead Of hu
dreds Of thousands we're the tar
rected against the product itself. as
N done In distillerIes or In storage wal
= houses Further In the brief, Il
commended that should the tar be pls
ID on the amount Of whiskey extra
n cd from the barrels Il would conn
.hese Interests TO close down ths
/ profitable business, as Il would ma
j The price OF Their product so high
the ultimate consumer as not 10
d competitor In the markets with 9th
products.
I'll whisky men generally are hopeI
that the "sokage' companies will
d placed In the same category az IN
are In respect 10 the Distribution
N tar exacted by the government.
As many briefs have been filed vi
J the commissioner by a number Of IA
yers representing various clients. Il
u presumed that a number Of wee