The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-09-30
j. s. PAID BILLION
To BOOTLEG rs
Estimated So, 100000 Due as
Income Tax.
GOVERNMENT AFTER REVENUE
May Force Liquor Dealers to Dis
gorge-SmuggIers Are Bringing
Millions of Gallons of Whisky
Into the Country.

Washington, Sept. 28.-Approximate
ly $1,000,00O,000 was paid bootleg
gers and rum-runners for whisky,
wines and home-distilled liquor last
year, it is indicated by records Of the
internal revenue bureau and the pro-
hibitiOn unit.
Nearly $32,OOO,0OO is due the gov
eminent from bOOtleggers as income
and excess profits taxes On this basis.
Naturally, no income tax returns adj
NIT profits from illegal sale of liquor.
The commissioner of internal reve-
nue. would like to collect the income
tax on the bootleg business. Thirty
or two, pay the expenses of the en-
tire Treasury department for almost
a month, of the State department for
two years
Believe Feat Possible.
Some officials of the internal rev.
enue department believe bOOtleggers
could be made to d.sgOrge part of
their profits, viii" are known to be
around 100 per cat. They say the
government at least can force pay
ment from those arrested and convict
ed. The number is large, and several
millions might be made payable, it is
argued.
Nearly 25,000,000 gallons of liquor
and near-whislky were consumed in
the United States last year, in viola
ton of the VOlstead law. Prohibition
Commissioner Haynes refuses to dis
cuss the statement, although admit
ting that some of the liquor with
drawn from bonded warehouses under
permits for non-beverage purposes
finds it's way into the hands of boot
Ieggers. Approximately 100000 gal
Ions of liquor was released by the pro-
hibitiOn unit in the year. In addition,
millions Of gallons were manufactured
in secret stills, and large quantities
we're Struggled from Canada Mexico
and the West Indies.
Smuggling Goes On.
Chief AshwOrth of the United States
customs service says smugglers sue
ceeded in bringing into the United
States ten times the amount the Gus
toms officials ere able to halt and
seize. During one period customs of
ficials seized more than 100000
quarts, mostly on the Canadian Dor
der.
Ten dollars a quart, or $40 gal
lon. is the minimum bootleg price for
liquor in most sections. In some
places imported stocks bring from $12
to $14 quart. The domestic bootleg
ger who buys smuggled liquor and dis
tributes it sells it for about twice
what it costs. Stories Of fortunes
made on single cargoes Struggled
across to Florida from Havana are on
the lips of many prohibition and GUS
toms agents.
Government officials are investigat-
ing the report from London that syn
dictate of Americans and British has
been formed to smuggle liquor to the
United States from the Bahamas on
an organized scale. Smuggling vessels
recently off the Atlantic coast are be-
lieved by officials to have been work
ing independently of one another.
Plan Fleet of Boats.
According to the London report,
however the British-American syndi-
cate planned to operate on a large
scale with one gOod-sized mother
ship and fleet of speedy motorboats.
The mother-ship was to have shipped
a cargo of liquor at a foreign port.
Proceeding to a point off the Atlantic
coast. the plan was to have the cargo
transferred to the motOrboats by the
mOther-ship. The mOtOrbOats would
then rush it ashore at night Substan-
TALLY the same plan of action was
tried by smuggling ships already
seized. Others are known to be using
the plan successfully now, but their
seizure is certain, officials declare.
Chief Trey of the internal revenue
bureau intelligence service believes
the bootlegging business is thorough
ly organized inside of the country.
Irey's job is to break up the ring.