The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-05-01
OSBORNE AMENDS
D|ST|LLERY ORDER
Permits Rebonding on Condition
That Distillers Install Safe
guards in Thirty DAYS.

AS the result OF protests filed by in
terestcd persons in the second revenue
district of Virginia, Commissioner OF
Internal Revenue w. II. Osborne yes
terday issued an order tho effect of
which is to suspend for thirty days the
rccen, order of former Commissioner
Royal r. Cabell. directing the imme-
date installation of certain protective
appliances IN the various distillinS
plants of tho country.
Tho order is regarded as a victory
for the distillers OF this district. and
will have the effect of avcrtng the
threatened complete suspension of the
spirit distilling industry. Under for
mer Commissioner Cabclrs ruling, col
lectors were instructed to withhold tho
renewal Of bonds required on May
unless the applicant could show that
lie had carried out the provisions of
the order. The practical suspension Of
this order yesterday permits the re-
bonding of the distilleries, on condition
that it's terms he carried out within
thirty days. The telegram to Collec-
tor NJ. K. Lowry follows:
Should any distiller in your district
fail to provide equipment as required
in letter of the Sth by or on the LIST Of
next month. you may approve his bond
on condition that he will do so within
thirty days. (SignedD
wv. II. OSBORNE"
Renewals Expected.
The order arrived too late yesterday
afternoon to acquaint all of the distil-
lers with it's contents, and 1t is not
known how many will take advantage
of it's provisions to apply for a new
bond. Chief Deputy Collector Meany's
desk was stacked high yesterday with
keys surrendered to the government by
the distillerles which had declared their
intention to suspend business. 1t Is
|
plants that have shut down Will to-
, day make application for a renewal OF
their bonds and will Immediately re-
sumo operations.
Tho suspension of every distillcry In
the district would mean Il daily loss in
revenue to the local Office of more than
5000. With the close of business yes
terday. which was the last day of the
bonding year, every distilling plant in
the district was sealed and its keys
turned over to the government officers.
The tacit understanding was that none
Of the plants would apply for n rebond-
ing until the new commissioner took
definite stand either by affirming or re-
, scinding the Caboll order.
Objected 10 RESTRICTIONS.
While one or two Of the distilleries
shut down because the ending of the
bonding year offered an opportune time
for the installation of repairs. most Of
the plants. 1t is understood, closed be-
cause they were unwilling to comply
with the terms Of the commissioners
order, which directed. among. other
things, that each distillery attach to the
valve of the pipe leading to the beer
wells seal ana lock, the key to which
shall remain with the government
gauger In charge.
The order carried other protective
provisions and was regarded by the dis
| tillers us needless and entailing an I'M
necessary expense. There was consid-
cradle resentment also at the implca-
ton of dishonesty which ii carried on
its face and which it obviously aimed
TO correct. Carried out to the letter.
the new order would make impossible
the drainage of distilery products from
one receptacle TO another without the
knowledge of the gauger
~ general suspension of business on
the part of the dstilleries would have
made serious nroads into the business
of the Virginia Bonded Warehouse Cor
poration. which handles practically all
the spirits produced in this district. In
an effort to secure n modification of
the order which threatened the shut
down. General Manager Henry s.
Hotchkiss, of the Virginia Bonded
Warehouse Corporation, conferred with
Commissioner Osborne in washington
Monday and yesterday. His mission,
NV oNoi' was soieiN IN the interest OF
the warehouse.
The commissioner was also an
preached on the subject by LAWYERS
representing several djstiileries He
Is reported to have said to these that
he would modify the order to hermit the
filing of bonds on condition that its
provisions be put into effect within
thirty days, and would in addition in
vestigate its advisability If the dis |
tillers are able to show him that there
was no necessity for the order, ho Is |
reported TO nave said. he would have |
1t rcscinded