The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-04-29
Spirit MAKERS TO
SHUT DOWN PLANTS
Notify Collector Lowry That
They Will Suspend Opera
tions Tomorrow.

Notice has been served upon Col
lector NJ r. Lowry. of the local in
ternal revenue Office, by the seven
distilleries now operating in the Sec
ond Revenue District of Virginia. that
which is the end of the bonding year.
The suspension notice carries nothing
with 1t that prevents the renewal of
bonds on May l. followed by permits
sion to resume business, burt II is not
believed that the new bonds will be
filed.
The situation produced by this &C
ton on the part Of the distiller:es Is
unique in the history of the Second
Revenue District of Virginia. 1t has
been the common practice TO close dis
tiller;es for limited periods during tho
summer TO permit overhauling and tho
installation OF repairs. The hut-downe.
however, seldom came before July, and
affected only a portion OF tho distill-
cries at any one time.
With the closing OF every distillery
In the district Will come a shrinkage in
the receipts OF the local revenue Off ce
which 1t is estimated will amount to
more than $1,000 day. Should the
plants remain idle for a considera BILE
length of time the deficit in this source
OF revenue will be sufficient to give
the department SERIOUS concern
Various Reasons Ascribed.
Under the law no distillery can con-
tinue business without filing on May
of every year new bond. The sus-
pension notices nled with the local
Office indicate the intention OF the
distillers to run out"-an operation
for which four days is allowed-and
carry the Inference that none OF tho
distillers will make application for the
present. to continue business
At revenue headquarters yesterday
officials declined TO discuss the reasons
for the impending shutdown. They
acknowledged the receipt of the sus-
pension notices, but would make no
comment on their significance further
than TO say that the unaninity OF the
action was out or the ordinary. The
development. however. has provoked
wide discussion. and various reasons
are assigned.
In at least ono case the shut down
/, matter OF convenience to enable
tho owners to install extensive i'm
provements. The fact that the bond
ing year ends tomorrow determined
the closing OF the plant until it is in
a position TO nle a new bond common
surase with the Increased size OF the
distiliery Similar reasons may have
caused the closing OF one or two others
Objection to Order.
The commonest. explanation, which
however. cannot from its very nature
be verified absolutely, is that several
of the distilleries have sliced upon this
plan to register their protest against
a recent order OF Commissioner Cahell
imposing certain protective regulations
connected with the operation OF dis
tilleries. which the owners resent
The order referred 10 was issued
abou, three weeks ago and directs that
each distillcry attach lock and seal
10 the valve OF the pipe leading to
the beer wells, and orders the install
lation OF still other safeguards
The object Of tho commissioners
order is 10 make II Impossible for dis
tillcrics to manipulate the operation
Of their plants IN such a way as %
evadc any par, of the government tax,
without the knowledge OF the store
keel per gauger. Under the ruling. the
key to the valve which was ordered
locked and sealed, is placed in the
hands OF tho gauEcr and no draining
from one receptacle into the other
would he possible without his knowl
edge This order has hecn communi-
! Gated TO tho distilierics by the local
revenue office.
The distllcrics. il is reported TO
gard the new order as "A needless and
| bothersome restriction Involving use
less expense. There is further resent
! ment at the Implication OF dishonesty
| which IT carries with it. Considera-
tons OF this character 1t is believed
! caused several Of tho distilleries TO de-
| eide upon a suspension until the new
| commissioner makes known his stand
| upon tho order either by resembling
/ or affirming il. The local revenue Office
| would decline to recommend 2 rehond-
/ ing unless the new order were put into
| effect by tho applicant.
No Danger Of Drought.
While beginning pnxt Thursday tine
! Second Revenue District Of Virginia will
go temporarily dry as far the manu-
facture OF spirits is concerned. there IS
no Immediate danger Of drought ~
f! the close OF business this month the
, general bonded warehouse In Rich
/ mond will have on storage about 500.
/ 900 gallons Of spirits. the largest guam
tity in the history OF the warehouse
The $4,000 daily shrinkage in receipts
however, will be none the less real
since practically all whiskcy manufac-
tured in this district eventually pays
tax to the local Office
The conjecture that th~ Webb x en-
| yon law by Its restrictive provisions is
! injuring the whskey manufacturing
business In this district and is partly
responsible for the impending shut
down. is not seriously credited. II has
not operated to diminish TO any marl<e t
degree the volume OF shipping from