The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-08-21
Owners Claim Federal
Requirements Wipe
Out All Profit.
ONLY TWO PLANTS
NOW IN OPERATION
Thirteen of Fifteen Distilleries
in Eastern District of Virginia
Close Down, While Seven
Are Seized for Viola
tons Of Revenue
Laws.

| Laws.
! Within the short space OF eighteen
months thirteen Of the fifteen disti-
/ leres in the eastern revenue district
Of Virginia have closed their doors
until ther, are to-day In operation in
the entire district only two plants
! The situation is the most remarkable
: that has ever been known in the dis
I trict. and mas aroused widespread
comment among both manufacturers Of
distilled spirits and officials of The
internal revenue department.
/ From tho slde of the distiucrs
comes tale vi government require
Taents with which they are unable 10
comply ana mako money These
ascsiDe ,he closing Of the dis,iileries
10 two factors Tho lot summer
Weather. they claim. brings with It
All additional cost in production be-
cause of the Increased difficulty en-
countered IN cooling the mash This
particular obstacle vanishes with the
approach OF cool weather.
Inc greatest complaint from the
distiilers, however IS tina; the de-
partment has unreusonabiy INCREASED
the survey requirements. with the re-
suit tnat IN. Gi-t!ller!es nnd II i'm
possible to operate at q profit ana
keep wltnln the Laws. The average
survey Tor Gist!lIcrIes IN lHis district
unul TIC last year or two il :,
pointed OUT required The distiuation
OF $40 gallons OF spirits from every
bGshel ot grain. while this surveys
nov IN force average nearer TO 500
gallons.
Claim There Il NO ProBt.
Under surrey of 100 gallons II
Is claimed. 1t IS Impossible 10 operate
in tails district with q satisfactory
margin OF pron,. and rather than con-
iinue 10 lose money most OF the dis
t.llers have closed their plants inden-
nitely- Seve.=. q: the disti!leiies now
closed VIII reopen III the autumn and
winter. vine. certain Of The processes
can be carried on a, reduced eX-
pense, but utneis viii remain pern.a-
nently closed
! Officials in the local revenue Office.
, when asked tog statement, touching
the suspension OF practically every
disttllery n the eastern o.s,r.c, Of
Virginia. replied ihat the condition
was the most remarkable that mas
confronted tie department IN years,
but declined 10 enter into discus
sion OF causes. They maze light, how
ever. OF the claims that the govern
inent ,Vas impUsins unreasonable de-
mands.
the business o. llstl!!ms. said an
officer OF t.- revenue department yes
terlaS, in discussing tne situation,
more than any otHer that comes
under Federal Supervision, has been
made the subject Of the cios-st sclen-
tinc investigation ty the government.
Il is absurd 10 suppose that the de-
partment would impose conditions OF
make demands which could lot be ne,
by correctly operated d!siilleries salts
NEG with a reasonable pront.
III is true that the survey has bee"
increased 1t IS also true that the
plants have been enlarged and have
installed improved machinery ana APP
] plianccs. making II easier and less ca
lpens.ve TO produce higher Yields
Even under survey OF 100 gallons
distiners are held strictly account
able for only 50 per cent of that
! yield. making the minimum required
production only $50 gallons. 1t IS
quite probable that a number OF the
plants are taking advantage Of the va
cation season to install repairs. but
this increased survey claim woat hold
/ water
seven Plants seized.
Impartial iookers-on, who have
/ watched the relations between the
revenue department aud distillers for
the past two years. offer what is be-
I
/ informed men 10 be the true reason
for the closing OF the distilleries,
stated in bald terms. It is that the
Internal revenue department. under the
/ effective administration of Commits r.
sioner Royal L. Cabcil has inaugu-
rated system OF espionage and
supervision which has wiped out the
possibility OF proht from sinister
sources
T., ,,,,,.., I'll, ,bfs ,-4av. ,ha,. ,,otn,
out that in = period OF less than
/ eighteen months no less than seven
distilerics in the district have been
! seized for violations OF the revenue
laws. IN number of instances. notably
In the case OF the Broad Rock Dlstii-
/ ling Company. the government was
Gefrauded out OF thousands OF dollars
through the evasion Of revenue taxes
| OF the Gftcon licensed distlleries in
the district. tie following have beer
arratgned for violations OF the law:
/ The Bellport Distilling Company, 81
Portsmouth,: the Broad Rock Distill-
ing Company OF Chesterfield. tho
Eastern Distilling Company of Nor
| folk: the Henrico Distill!ng Company
the Pocahontas Distilling Company. OF
| Petersburg the Richmond Distilline
Company of Hcnrco and the stony
Creek DistiIing Company. OF Henrco
| - this number. the plant OF the Broad
Rock Company was conhscated by the
government and the owners sentenced
TO prison terms. The others subse-
Qucntly resumed operations under
bond.
! Only Two Running.
| III addition to the distilleries named
the district contains the Chesterfield
Distnling Company. the Darbytown
! Distilling Company, of Henrico; the
Diamond Distilling Company. OF Nor
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