New-York tribune., 1920-01-03
Kentucky Distillers Face
Loss of 10000, 900
Gallons Now in Bond
by Present Time Limit
Big Revenue at Stake
Government Urged to Per-
init Shipments Abroad
Later Than January l6
New York Tribune
Washington Bureau

New York Tribune
Washington Bureau
WASHINGTON, Jan. 2.-Kentucky
distillers have made last appeal to
the government to give them an op-
portunity to save the 4o,00O.000 gal
Ions Of liquor stored in warehouses
in that state and 2O,OOO0OO gallons
held elsewhere and export Il beyond
the boundaries Of the United States
after the prohibition constitutional
amendment goes into effect January 16.
The distillers have filed long state
ment with the Internal Revenue
Bureau, pointing out that if the permis-
sion they ask is given the owners of
the liquor will not only be saved enor-
nous loss, but the government will
be assured millions Of dollars in rev.
enue which otherwise would be lost
to the taxpayers.
100000, 900 Revenue
How much of the liquor now in bond
would be exported the distillers do
not know, but if all the 6O,O0OOOO gal
Ions we're disposed Of the government
would collect somewhere around $780,
100000 in revenue
Investigation at the bureau to-day
developed the fact that the distillers'
Plea has not reached the officials who
must act upon it finally. An informal
statement of the case, however, did
not develop any indication that the
bureau would give favorable de-
cision.
In brief, the distillers propose that
they be permitted to take their liquor
out of bonded warehouses and put it
under bond for export and that the
government consider it exported as of
the day export bonds are given.
This would mean, despite the fact
that the prohibition constitutional
amendment forbids export after Janu-
ary Is, that liquor put in export bond
before that date could be sent out of
a reasonable limit set by the Internal
Revenue Bureau. The distillers have
asked that at least year be allowed.
60,OO0,OOO Gallons
The .distillers point out that there
are 400O0,0OO gallons stored in Ken
tucky warehouses and possibly 2O,OO0,-
600 gallons elsewhere, that apparently
cannot be disposed Of in any way 'un-
less some such relief is given the own
ers.
They say that the purpose of Con-
gress was not to make the whole world
"dry," but only the United States, and
IHci cIVIc CueIe Cdn De no ODJeCC1OnS
to giving them permission to dispose
Of their stocks outside the country.
The physical impossibility of getting
any considerable part Of the whisky
shipped by January Is is emphasized
in the appeal. The dealers say that it
would take somewhere around 10000
railroad cars to transport it and hun
dreds of trains for more than the
period remaining between now and the
day the constitutional amendment shuts
down the lid forever
Another point made in the brief is
that under existing regulations two
gaugings are required of liquor ex~
ported, one when it is taken from a
bonded warehouse and one at the port
Of export, These gaugings take much
time and can be performed only by
experts. Gaugers began to realize long
ago that the gauging business was on
the decline in the United States and
many Of them have gone into other
at the warehouse to suffice.