The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1919-06-10

NEW YORK. juno 9.-Thc d:stllers
and wholesale whiskcy dealers OF this
country face tremendous loss II war
time prohibition COOS INTO effect on July
t. n loss that has been estimated at
sI3O. nNO oO0. This represents the
wholesale value Of whiskcy now lying
in bonded warehouses in various parts
Of tho country and which. in the nor
nal course Of events. would be- with
drawn gradually at the rate of 100000
or 5000. Onn gallons a month.
Brokers and wholesalers who have
kept we'll informed az to the supply OF
whiskry in these warehouses believe
they hold about 6n.0n0.0n0 gallons, &C
that If war time prohibition were re-
mo, I'd and the country did not go dry
until January under the constitutional
amendment more than one-half Of this
great store OF distilled spirits would be
placed on tho market.
Tho loss in revenue to the govern
mcrt IS even greater. If this reserve
were released il would yield in taxes
almost $500. .nnn. and even If only
half Of II wcrc consumed in the six
ncrths that remained before the whole
country becomes arid it would bring in
5000 OnO 600 tn relieve the pressure OF
government Ht
consumption of whiskcy used to be
about II. no. On gallons a month. but II
was shown by the tax returns for March
Of this year that. owing TO the increas-
ed cost Of whiskcy. only 100000 gal
Ions had been withdrawn from bond. and
if tho sale were permitted until Janu-
Iary wholesalers estimate that probably
4.nn0.n00 gallons month would be
a Out nrn0Iin}
There arc two opinions among the
wholesalers as to what will happen
! after July !. The majority Of them are
taking no chances and carrying low
stocks. believing that tho sale Of whis-
key Is nearly over. and that this month
i will see the end Of II. Indeed they
say that in this month indications arc
! that only 1.onn.nno gallons will be with.
drawn from bond They do not wish 10
pay tax on tho stun and they have II
left on their hands. in which CASE they
would not only face big loss in the
value Of the whiskey but an even larger
deficit because Of the tax paid on an I'M
salablo article
| 4 fcw Of the big dealers, however,
] are taking n chance and gambling with
hundreds Of thousands Of dollars on the
! possibility that war time prohibition
may be revoked and that there will be,
sCant six months in which they cam
got rid OF largo stocks. They are stalk
| ing fortunes on this hope that they have
guessed correctly as 10 what President
Wilson or Congress will do, and they ad-
INIT il is pure speculation. II they have
guessed correctly they will make a
tremendous profit. if they have not they
will lost heavily.
The chief exponent If this belief IL
! r. F.. Wathnn & Co. ono Of the largest
| few months they have been moving to
New York. accordinGto their agents,
| large stocks OF whiskcy which they have
removed from bond and on which they
have paid the Government tax Of 500
a gallon. They have here at tho present
time also sI50.0o0 worth Of Hhiskcy
, and expect 10 have 81 .000. 900 worth here
! by July !. That valuation includes the
actual value Of tho whiskey and the tax
! which alone amounts 10 about SEQ 600.
II they have guessed wrong as to what
will happen after July they will lose
sl,000.ooo. But II the ban is lifted they
the, New York market TO themselves
and realize heavily on their investment.
The reason is this: Bonded warehouses
are Of two kinds-general warehouses,
Of which there are none within several
| hundred miles Of New York, and dis.
! tllery bonded warehouses. which arc al
! ways part OF the distillery plant. To
, bring whiskey from a general bonded
warehouse or from the distillcry bonded
| warehouses would take in the usual
| course Of freight traffic n week or ten
days. The probabilities are that when
July comes there will be mighty little,
whiskey for sale in New York, not
enough Al least to meet the demand for
more than, few days. And tho Wathen
COMPANY is speculating purely on the
assumption that 1T would he the only
people TO supply the demand. -
Another Hopeful Ytrm
Another firm that Is OPTIMISTIC regard
TF IN" rs t of ssd MS.o hogse
nue.. which about two months ago
bought the Gordon Gin manufacturing
plant in this country and also an inter-
licv"s. If its purchases can be taken as
indicative. that prohibition will not be
absolute until January.
The buying Of whiskcy by individuals
been nearly as heavy. rs many people
have assumed. There have been wealthy
mon who have purchased large quanti-
ties Of whiskcy and stored It in their
ia coming. but the price has been so high
that the man Of moderate means and the
poor man have not been able TO stock
ur, at all. SO that although Some indi-
vidual buyirg has been heavy tho gen
cral sales for use in homes have been
far below what might be imagined.
Il suppose there arc 100 mon in the
city who have put away in thu cellars
Of their town homes alone barrels Of
whiskcy whose contents measure up to
$50 gallons said largo wholesaler
yesterday. but l doubt very much II
there arc more than that. I have heard
81 most Of the big individual buyers
and have sold some OF them myself. but
they arc not numerous. The stun costs
too much. That much high grade whis-
key would cost a man pcarly $4,000.
And ! do not think the price will
fall much az the last day approaches.
doubtrdly fall. but good whiskey Is COM
parativcly scarce, and its price win stay
up As for myself. I am going to re-
fuse all orders after June % and clean
up because II does not seem 10 me that
tho han will be lifted. II am wrong
Of course | can withdraw moro from
bond and sell il, but do not want to
get caught with a big stock on my
hands. and none Of my business ASSOC
, riatcs do Cithcr. The men who arc doing
ANYTHING else arc Just gambling. taking
a big chanc" to make lot OF money.
wholesalers who have this st2cf Of
80 ron. nnn gallons Of bonded Whisky on
! their hands arc worrying over tho pros
poet Of staggering losses Is that the
market for American whisky abroad ID
very small. II is not salahlr IN Europe.
and about thC only markets are IN souih
America and tho South Sc4s. with A
small sale in Australia. The English
! who arc The other large whiskey drink
ing pcnrlc. like Scotch and Irish and
, care little for our rye ana bourbon.
! Given time tho diStillcrs might dispose
Of their holdings tn their limited Tor:
rign markets. but much ~ the bonded
whiskcy Is not maturcd-not ~ for con-
sumption as yct--and the prohibition
amendment prohibits expectation for