The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1911-12-23
vssUME XVIII
Kaupakalua
Winery
Some Facts Regarding the Trouble With
Internal Revenue Department.

Developments in the matter OF
the story that has been hinted at
about the Kaupakalua Wine & Liq-
uor Co., reached the status of avail
ability for publication this lweek
when Internal Collector Cottrill was
questioned by a reporter. The Col
lector was very reluctant to tell the
story but, as many garbled reports
having been going the rounds, he
gave replies to direct questions.
It appears that for some months
past the Internal Revenue depart
ment has been closely watching the
operations of the winery. As is well
known, the wine is fortified with
brandy. When brandy is obtained
from the mainland. in bond there is
no duty to be paid on it here, if
used for the fortifcation of wine.
The Kaupakalua company has,
from time to time, imported brandy
from the Coast. On one occasion, a
little time ago, brandy was i'm
ported, as the machinery at the
winery had broken down and no
brandy could be made there.
The residue of the grapes is the
material from which the brandy
used to be manufactured. AS it is
alleged the manufacture of this
brandy and the use of it in its pre-
sent form are not permissible by
law, the Internal Revenue depart
ment moved in the matter.
The wine company, wishing to
get advice on the matter, consulted
Walter F. Drake, the former COL
lector. Drake wrote letter to the
department and told Of the manner
of manufacture.
1t is said that the manufacture Of
the brandy used for fortification was
allowed through false impression
that was given by the company.
All the information in connection
with the case has been forwarded to
Washington, and United States Dis
trict Attorney Breckons has been
notified of the matter.
Food Commissioner Blancherd has
been engaged in making tests of the
wine OF the Maui company. He said
that he would have to forward the
results to Washington. and that he
could not give out any figures or
facts on the matter.
Walter Drake was seen about the
matter and he stated that, on ac-
count Of a difference in the grapes
this year, sugar had to be used to
s Keep. the wine up to the standard of
former years.
The penalty for the offense of
manufacturing brandy in the form
complained of, and its use in that
state, if fine of 5000 and two
years. imprisonment.
Collector Cottrill sought no noto-
riety in the case, and he desires to
hurt nobody. He spoke on the mat
ter when confronted with facts CLEAN
ed elsewhere.
The wine company is said to have
written letter offering large sum
OF money to compromise the matter.
The internal revenue regulations
permit OF an offender against the
revenue laws making an offer of
compromise, and in many cases this
is accepted, though there is no OBJ
legation on the part of the treasury
department to accept. In the pre-
sent instance it is known that the
amount offered in compromise runs
into four figures. Whether it will
be accepted or not is doubtful as the
offense alleged against the kappa
kalua Wine Company is an ex-
tremely serious one.
Collector Cottrill has placed the
matter before United States District
Attorney Breckons, but Mr.. Breck-
ons has as yet taken no action in the
matter.