UC-NRLF I HD *B 3T 5b^ V0 ^7 74 DISTILLING IN GERMANY ^ -i c/' 7 WITH PABTICUAR EEFERENCE TO ITS AGRICULTURAL SIGNIFICANCE A Part of a Thesis Presented to the University of Michigan By carl H. cooper For the Degree of Doctor of Philosophy, No person visiting Germany, who has the opportunity to observe the industry and the agriculture of the country, cau faijl to be impressed with the large number of distilleries and breweries everywhere to be found. The preparation of alco- holic liquors is, to-day, one of the most important branches of German industry, and in many ways occupies a peculiar posi- tion in the industrial life of the Nation. As the result of an interest in the subject awakened through favorable opportunities for observation, a study of the alcohol industry was made by the writer, both distilling and brewing; being considered. It was attempted to trace the hi^oric de- velopment, and to discover the present economic significance, industrially and socially, of this very important branch of business activity. The present paper is a portion of the former one, consider- ably altered, and with much of the statistical material omitted, and seeks to trace the development and present con- dition of distilling, particular attention being given to its agricultural significance. II. ^^^^^ I. The Industry Before the Nmeteentii Century, a. Early Knowledge of Spirits. h. Introduction into Germany and Spread of Its Use. c. Character of Early Distilling. The Industry from the Beginning of the Nineteenth . Century to 1887. a. N'orth German States. 1. Introduction. 2. Prussia. 3. Eemaining States. (a) Introduction. (h) Saxony, Thuringia, etc. b. South German States. 1. Bavaria. 2. Wurtemberg. 3. Baden. III. The Present Industry, a. Introduction. h. Number of Distilleries. c. Distribution. d. Character. e. Labor. /. Materials used. 1. Potatoes. 2. Grain. 3. Molasses. 4. Other Materials. g. Product, Amount and Character. IV. Possible Developments. a. The Extensive Use of Spirits for Technical Pur- poses, and the Possible Eesults Therefrom. I. The Industry Before the Nineteenth Century, a. Early Knowledge of Spirits. Though wine and beer were known to the ancients, spirits in the modern sense of the word were not.^ Alcohol was originally exclusively distilled from wine, according to Mar- cus Gracus^ who described the process in the eighth century 1. StahlBchmidt, C, " Die Gaehrungs Chemie." Berlin, 1868; p. 270. 2. Baer, " Alcoholismus." Leipsic, 1876 ; p. 20. V,. c- A. D., and as the German name *'brannt-wein'' would indi- cate. However the distillation of grain was known to Rhazes as early as 860 A. D.^ In the eleventh century Afrikasas, a Spanish physician, mentions alcohol in his writings, and it was known to other chemists and physicians, but the methods of preparation were treated as a mystery.- h. Introduction into Germany and Spread of Its Use. In the thirteenth century, through the Arabians, it began to be used as a medicine, and quantities were introduced into Germany from Italy, at the beginning of the fourteenth cen- tury, as a remedy against the plague. Until the end of the fifteenth century it appears to have been used chiefly as a medicine or elixir of life, but during the following decades its use as a beverage became so common that the quantity pro- duced from wine was not sufficient to supply the demand, and the practice of distilling wine lees and beer residues began. In a short time distilling became a sort of branch of brewing.^ Finally, the increasing use led to the direct production of alcohol from grain, which dates from 1590.* The evils re- sulting from the use of spirits, as w^ell as the fear of famine, caused through the distillation of grain, induced many princes to issue mandates forbidding or controlling the pro- •duction and use of acohol. The landgrave of Hesse forbade the use of alcohol in 1524. All distillation but that from wine and brewers' grains was forbidden in Electoral Saxony in 1595, and in Bavaria in 1553 and 1604.^ Absolute prohibition, of the use of spirits as a beverage was frequently enforced during the entire four- teenth century, but distilling also began to be recognized as a productive industry, needing rather to be controlled than to be suppressed. The Thirty Years' War resulted in greatly increasing the consumption of spirits; camp life, the destruction of the 1. Hoefer, F., " Histoire de la Cemie." Paris, 1869 ; p. 341. 2. Stahlschmidt, pre. cit., p. 270. 3. Meitzen, Aug., " Der Boden u die landwirtschaftliche Verhaeltnisse des Pr. Staates. Berlin, 1862; vol. ii., p. 378. 4. Stahlschmidt, pre. cit., p. 270. 5. Wolf, " Der Branntweinsteuer," p. 44. 239392 vineyards, and the misery of the period contributing to thi& end. However, its use was chiefly confined to the cities, and it was not until after the Seven Years' War that alcohol be- came the drink of the poor peasants, among whom the habit spread with great rapidity.^ c. Character of Early Distilling. In the beginning, production was chiefly carried on in cities. In Prussia, the Great Elector forbade distillation out- side the cities, and not until the end of the seventeenth cen- tury was the privilege extended to the manors.- This; monopoly was very important to the towns, as the distilleries, not being hampered at first by guild restrictions, and having a ready sale for their prcciuct at good prices, grew rapidly. Dreyhaupt, in 1750, called the business "Eine Alte Nahrung" of Halle, which had 35 distilleries in 1756, and the safue was true of many other cities, particularly those situated in good grain growing districts.^ With the poor transportation facil- ities, grain was not easily and profitably disposed of; but when distilled into alcohol, rye became a much more portable, valuable commodity, and in addition the waste of the stili furnished an excellent food for animals. So swine raising- was carried on in connection with distilling, witl^ vei^ lucra- tive results. The gains soon showed themselves-^till greater in connection with cattle-feeding, so land-owners hastened to establish stills on their possessions, in order to profit through the maintenance of more cattle, which the by-products of the distillery alone made possible. With the growth of the industry, and a recognition of its agricultural importance, the earlier restrictions against the use of grain were removed, as the States now wished rather to . foster than to hinder the development of what had become a weighty source of revenue. As early as the sixteenth centuryv taxes began to be levied on alcohol by German States, chiefl/ as local taxes on consumption. In Bavaria, Amberg imposed. 1. Baer, pre. cit., p. 223. 2. Wolf; p. 45. 3. Schwetschke, Gewerbliche Geschichte der Stadt Halle. Halle, 1883; pp. 211 and 216. a local tax on spirits in 1527, while a tax on imports and ex- ports was established, for all the provinces, in 1542. Such taxes were also raised in Brandenburg, in 1575; in Saxony, in 1595; and in various other States, and by the end of the following century alcohol taxes were generally an important part of the revenue system.^ II. From the Beginning cf the Nineteenth Century to 18S7. a. North German States. 1. Introduction. A study of the statistic? of the production of alcoholic liquors in the different states of Germany during the nine- teenth century gives one a good idea of the agricultural and industrial changes that have taken place within this long period, and of the influence which the formation of the Cus- toms Union, the improved transportation facilities, the intro- duction of steam power and machinery, industrial freedom, the growth of capitalism, and the creation of the German Em- pire, have had on agriculture and industry in general. In Germany, at the beginning of the century, trade and produc- tion were still hampered by almost mediaeval restrictions. The craft guilds still existed in many places and with their regulations (Bann and Zwang Rechten) exerted an injurious effect on industrial development. Still more harmful, how- ever, was the division of Germany into a large numljer of in- 'dependent tax and tariff districts, which made extensive trade tilmost impossible. Agriculture was still carried on in a very primitive way, little if any improvement having been made for centuries. Mecanical aids, with the exception of those I)orrowed from the ancients, were unknown. The method of cultivation was the so-called three-field system, in which grain is raised upon the land for two years, while during the third year the field lies fallow, i. e., not sown, but plowed and cul- tivated in order to cleanse it from the weeds, which cannot be destroyed when land is sown to grain. Under this system of •agriculture, which was universal, one-third of the farming land of Germany lay idle and a great economic loss resulted. 1. Wolf, " Die Branntweinsteuer," p. 82. The beginning of the century was marked by a great increase- in the consumption of alcoholic liquors of all kinds, which was largely occasioned by the economic difficulties and horrors- of the Napoleonic period, and the spread of the custom through the returning armies. Distilleries and production increased very rapidly, particularly in the countr}-, where the raw ma- terials were close at hand. This period of growth was also one of reform. The abolition of mediaeval conditions, the creation of a Customs Union and the introduction of uniform taxation have been most potent in aiding the industrial de- velopment of Germany, and as the first steps toward reform were usually taken by Prussia we will first consider that king- dom. 2. Prussia. Prussia, containing some of the most fertile districts of Germany, well suited to the raising of rye and other grains, possessed a considerable distilling industry at the beginning of the century. The establishments were chiefly found in the important agricultural provinces of Silesia, Saxony, Bran- denburg, East Prussia and Posen. There were a considerable number of distilleries of fair size running the year round and found in or near the cities. Then, in the cities, were the little stills connected with a bar, over which the product was dispensed. In the country, the majority of the plants were run only during the fall and winter months or as long as the grain lasted and in connection with agriculture. Those of the district along the Rhine were operated only a few days or weeks, and produced brandy from the spoiled fruit, wine lees, etc. Finally, numerous brewers still continued to produce whisky from the brewers' grains, or that part of the malted grain remaining after the wort has been extracted. The growth of the industry was greatly hampered, however, by the various taxes to which it was subjected. Prussia still retained at the beginning of the century an antiquated and complicated excise system, of which many features had been borrowed from the French. iVlcohol was placed under different taxes in all the various provinces and cities. Distinctions were made between country and city dis- tillers, and boundry taxes were raised by the several divisions of the monarchy. In all there were 67 different tariffs ex- isting/ Under the Stein-Hardenburg ministry steps were taken to free the industry from some of these claims. First, the ancient monopoly rights of production and sale (Brannt- weinzwang), held by guilds and individuals, were largely an- nulled by the edict of October 28, 1810. Then the edicts of October 27th and November 20th of the same year taxed all distilleries^ city and country, alike. ^ The form of the levy was the still tax, controlled through a tax on materials, viz., a tax according to the capacity of the worm. This position of equality with the city distilleries, the heavier burden, and the novelty of indirect taxation, resulted in such complaints from the country distillers that the raising of the tax was soon sus- pended, except as one on materials. Another attempt at a still tax was made by the edict of September 7, 1811, which retained the tax in its earlier form and height for the cities, but lowered it seventy-five per cent, for the country. The ad- dition of territory through the wars of 1813-15 had introduced new complications into the tax system, and in 1819 (Febru- ary 8th) the still tax was extended over all parts of Prussia.^ After 1811 the complaints of the farmers over the new form of taxation largely ceased, as the industry had gone to work to produce as much alcohol as possible in a short time ; or in the twenty-four hours taken by the law as the standard distilling period, to produce more alcohol than the law assumed, thus saving tax. During the second decade of the century distill- ing- developed with great rapidity. This was largely the re- sult of the low prices for agricultural products which followed the Napoleonic wars. Alcohol remained high^in price and distillation was considered the best means of utilizing the grain. So large numbers of land-owners erected stills. There were in Prussia in 1812, 19,203 such plants; in 1816, 24,092 ; and in 1820, 35,364.* 1. Conrad's " Handwoerterbuch der Staatswissenschaften ;" 1st ed., vol. ii. p. 557. 2. Wolf's Branntweinsteuer, p. 49. 3. Wolf.pre. cit., p. 53. 4. Meitzen, "Boden u. landwirtschaftliche Verhaeltnisse, Etc.;" vol. ii.,p. 392. The problem which the still tax had set before the distillers soon bore fruit in great technical advance. Improved stills were invented by Pistorius and Dorn/ which permitted direct distillation from the mash, and shortened the time very materially. But these advantages were chiefly for the larger city establishments, which could profit through the best ap- paratus and the most economic conduct of the business. On the other hand, country distilling was a business secondary to and dependent on agriculture. The extent and time of dis- tilling was largely controlled by the amount of land cultivated, the number of cattle, the harvest, the fodder, etc. In addi- tion, the farmer could not give the attention to distilling necessary for its most economic conduct, nor could he utilize fully the improved methods. Consequently, the burden of the tax rested more heavily on the country than on the industrial distillers, and the former began to complain very loudly of the unjust taxation. It was recognized that if agriculture was to retain the benefit derived from distilling, a reform must be brought about which would make the farmers stronger in competition and burden all equally. So in 1820 (December 1st), after careful consideration, the still tax was abandoned and a tax on the capacity of the mash tub (Maisch- raumstener) introduced as an experiment and definitely adopted January 20, 1822, after experience had shown that it was an improvement over the other system.^ Of all forms of taxation that upon the capacity of the mash tub is the best for building up the industry, technically and mechanically. It sets the problem before the distillers of producing the most alcohol possible from the smallest volume of mash, in order to evade part of the tax. To accomplish this, more alcohol-producing materials to the same amount of water must be mashed in the same size tub than before, or thicker mashing must be resorted to. But in thick mashing the fermentation was not complete and a loss of materials re- 1. S. Meyer, Die Internationale Spiritus Production; art. i., p. 145. Viertel- jahrsschrift fuer Volkswirtschaft, 188^. 2. Wolf pre. cit. p. 55. At the rate of 52 marks a hundred hectoliters of mash tub, 2 per cent, of pure alcohol being taken as standard. suited. In addition, the mashes had been cooked over an open tire up to this time, which endangered burning when they were too thick. But these difficulties were solved by the de- velopment of stronger ferments, which fully fermented the starch in thick mashes, and by the introduction of steam cook- ing apparatus. Through these improvements it was soon pos- sible to mash as thickly as in the ratio of one part of dry sub- stance to six or seven of water, while the ratio assumed by the law was one to eight. In other words, from every one hun- dred quarts of mash not the legal four but from six to eight quarts of alcohol were produced.^ But the small, particularly the agricultural distilleries, could not make such rapid ad- vances as the industrial, and many of the improved appliances were too expensive as well as not economic in a distillery of small capacity run only a few months of the year. In addi- tion, the revenue officials recognized that the improved technic had really lowered the tax; so through the Cabinet order of January 10, 1824, an attempt was made to aid the farmers and also to raise the tax, which was fixed at 62 marks a hecto- liter, or the yield taken as 2.-1 per cent, of pure alcohol. The farmers using only grain or potatoes were taxed one-eighth less.^ In spite of the technical and mechanical disadvantages un- der which the country distillers worked, the natural advan- tage coming from their connection with the soil were sufficient to impart great elasticity and competitive strength to them. As long as distilling paid for itself production could be con- tinued, for the advantage of the fodder and the manure re- mained. The small city distillers, on the other hand, pos- sessed no such advantage and when the large firms lowered the price of alcohol they were in most cases forced to discon- tinue. A great assistance was given to the country distillers about this time by an agricultural revolution, accomplished largely through the efforts of xllbrecht Thaer,^ the great agricultural 1. Glaeser, Die Steuer-Systemebei der Branntweinfabtikation. Brieg, 1868, p. 33. 2. Heckel, in Hwb. der Staatswissenchaften, 2 ed., vol. ii, p. 1063. 3. For an account of Thaer's life and services, see Meitzen, pre clt. vol. ii, p. 14. 10 reformer of Germany. It was chiefly through his activities that the antiquated three-field system of cultivation was given up and modern methods introduced in its stead. As we have seen, the fallows of the three-field system had the purpose of allowing the destruction of the weeds, which could not be ac- complished with a grain crop. Thaer advocated the cultiva- tion of root crops, such as potatoes, turnips, beets, etc., on the fallows that have the advantage of being planted some dis- tance apart, so allowing the cleansing of the soil, and at the same time yielding a valuable crop. Thus one-third of the land is saved to culture, and the value of the soil is much in- creased. Of these crops the potato proved of incalculable worth to the farmers of Germany, and particularly to those engaged in distilling; therefore, we will consider its introduc- tion and cultivation somewhat in detail. Though the knowledge of the potato in Germany extends back to the sixteenth century, it having been grown in Frank- furt am Main in 1588 as a botanical curiosity, its culture, to any extent, did not begin until the middle of the eighteenth century, when its value as an article of food began to be ap- preciated during the years of famine and crop failure after the Seven Years' War. Frederick the Great did much to in- troduce it in his domain, and spread its culture in Pommer- ania and Silesia by force. However, it was not until the adoption of Thaer's ideas that the potato was taken from the garden and made a real agricultural plant.^ It prospers best on thin sandy soil, warm and dry, and Northern Germany is particularly well suited to its culture. In fact, whole districtk? that were formerly barren wastes have been reclaimed through the potato. The amount of sandy soil and ground classified as sand in the eight old Prussian provinces, particularly in the six eastern ones, is surprising. Of the entire surface of the kingdom the average amount of sandy loam and loamy sand is 27.4 per cent., and of sand 24.3. The average for the six east- em provinces is 37.9 and 33.0 respectively. The per cent, of sandy loam and loamy sand runs as high as. 48.0 in Posen, 1, Meyer's Conv. Lexicon, 4 ed.. art. Kartoflfel, p. 573. 11 while that of sand is 42.5 in Brandenburg.^ But the potato is a bulky product and its value will' not permit transportation to a distant market. It cannot be kept more than nine or ten months, and is easily spoiled through frost, rot, etc. Conse- quently, in order to profit most through its culture, where this is carried on extensiveh^, it must be manufactured into a prod- uct which can he easily stored and transported. This product may be either alcohol or starch. The potato can be mashed much thicker than grain or beets, and consequently yields more alcohol from the same sized mash tub. It also produces a much larger crop to the acre than grain, while the value of grain and potato spirits does not differ greatly. In 1829, a Prussian statistician made the following comparison :^ "One Morgen of land produces 6 sheffels of rye and 1 Mor- gen of land produces at least 80 sheffels of potatoes; but 6 sheffels of rye yield 72 quarts of 80 per cent, alcohol, while 80 sheffels of potatoes yield 400 quarts of 80 per cent, alcohol/' These advantages were soon recognized by the distillers, and from the moment that technical improvements allowed the re- moval of the unpleasant and injurious fusel-oil,^ which is present in raw potato alcohol in large quantities, potatoes were everywhere introduced into the distilleries, particularly among the farmers. In addition, from 1827 on, the price of grain rose, and the land-owners who wished to sell their grain at good prices, but still did not wish to loose the agricultural ad- vantage of distilling, went more and more over to the safer and more profitable potato.* The general condition of distilling in Prussia about 1830 was one of prosperity, and C.W.Ferber, a writer of the period, de^ribes it as follows : "Whether one observes the raw material, which the land ex- culsively supplies, the increased value of the material from its 1. From Jahrbuch fuer die amtliche Statistik des preuss. Staates, vol. iii, 1869, p. 92. 2. C. W. Ferber, Beitraege zur Kentniss der Gewerbl u, Kommerz, Zustandes der preuss, Monarchie. Berlin, 1829, p. 174. 3. Found also in grain alcohol, but in smaller quantities. (Amyloxyd- hydratCi^H >>0 + HO.) 4. Meitzen, pre. cit., vol. ii, p. 393. 12 distillation, the growth in trade through this branch of manu- facture, or whether one considers the endless advantages to agriculture and cattle raising which come from distilling, and the high intelligence with which this branch of Prussian busi- ness activity is conducted, everywhere the Prussian patriot has only reasons for great satisfaction and for certainty of the great national benefits derived from the excellently conducted distilleries, which are as well an important source of revenue for the public treasury."^ From 1831 to the present time statistical material is avail- able from which w^e can gain a fairly good idea of the condi- tions prevailing in the distilling industry in Northern Ger- many. In thfe year mentioned there were in the eight old provinces of Prussia 22,969 distilleries, of which 13,806 were in operation during the year. 9,399 or 68 per cent, of these were agricultural, the remainder industriah The largest number, 6,535, were found in the Ehine pro\dnce, the district of the fruit stills, while the largest number operated, 4,811, were in Silesia, where potato culture had become very com- mon. The smallest numloers were found in Posen, 382, and Saxony. 1,019. By 1887 the entire number of distilleries in the eight old provinces had diminished to 7,064; 5,808 being in operation, of which 1,000 and 4,796 were in the city and the country respectively, or 82 per cent, were agricultural. These facts indicate the concentration of production in large industrial establishments, and also the tendency of the distill- ers to withdraw to the country, where their plants are more profitable. In Posen, for instance, the city distilleries dimin- ished in number during this period from 235 to 6, while those in the country increased from 338 to 444. The tendency to retire from the cities was much stronger among the po^to than among the grain distilleries, the number of the latter having decreased from 2,280 to 756, or two-thirds, while the former decreased from 2,002 to 194, or nearly 90 per cent., between 1831 and 1865.^ This is explained by the fact that 1. C. W. Ferber. pre. cit., p. 169. 2. From .Jahrb. fuer amtliche Statistik des preuss. Staates iv. Jhg. 1876, p. 310, Monatshefte zur Statistik des deut. Reiches 1880 and 1886, and Meitzen pre cit., vol ii, statistical part. ]i3 raw grain spirits is much purer than that made from potatoes, and the direct retail of grain alcohol for drinking purposes is often carried on by distillers, the profits of which enable many small grain distillers to maintain an existence, while raw potato spirits is unfit for consumption without refining. So, with increased competition and higher taxes, the small potato distillers were forced to the ground, and only the larger ones have been able to maintain themselves. The amount of potatoes used in the entire monarchy in- creased very greatly, being four times as much in 1887 as in 1831, or 6,607,582 and 24,530,451 double centners respect- ively. During the same period the increase in the quantity of grain was very much less, or from 2,170,522 to 3,108,701 d. c.i From the character of the tax on alcohol, the statistics of the amount of spirits produced in Prussia during the period under consideration must remain mere estimates, and are at best very uncertain, as they depend upon the quantity taken as the average amount of spirits produced from a certain vol- ume of mash. This, we know, varied greatly with the thick- ness of the mash, and the distilling apparatus, and was alway-* uncertain. Dieterici- estimated the products in the eight old Prussian provinces at 171 mil. liters of 50 per cent, spirits for 1831, and at 224.5 mil. liters for 1839. In 1842, a low, careful estimate was 228 mil. liters, or a decrease from former years as a result of the potato rot. Then, too, the powerful temperance movement of the period had reacted on produc- tion, so we find the estimates decreasing, that for 1845 being 201 mil. liters. In 1838, the tax was raised from 62 to 72 marks for 100 hectoliters, and the assumed yield of alcohol from a quart of mash raised from 2 to 2.5 per cent., which for a short time lowered the product. In 1847, distilling was partially forbidden to lower the price of potatoes. Unfavor- able crops and high prices for materials continued to lessen the amount of alcohol produced, though favored by im- 1. From Jahrb. f uer Amtliche Statistik. etc., 1876 and Monatshefte, 1887. 2. C. F. W. Dieterici, Statist. Uebersicht der Wichtigsten Gegenstaende des Verkehrs u. Verbrauches im. preuss. Staat 1839, p. 223; 1842, p. 332; 1845, p. 365. 14 proved facilities, the tax was becoming smaller year by year^ as the State's revenue indicates: 7,024 million thalers in 1839, and 5,494 in 1854.^ An attempt to remedy this condi- tion was made in 1854 by raising the per cent, from 3.3 to 5 and the tax from 72 to 131 marks. The heavier tax had the immediate effect of increasing the revenue, but it also dimin- ished the production. Large numbers of the smaller e remembered that June finds many stills, particularly the agricultural, not in operation. As to the location of the distilleries, whether in the cities or in the country, the present imperial statistics give no infor- mation. However, from the classification "industrial" and ''^agriculturar' we can gain an approximate idea of their loca- 1. From Vierteljahrshefte zur Statistik des deut. Reiches, for different years, art. "Branntwein." i. From V. j. h. zur Statistik, etc., vol. 9, 1900, pi. 2, p. 137. 3. From "Gewerbestatistik der Bundesstaaten," Neue Folge, vol. 114. 24 tion. Ill 1891) there were 1,226 classified as "industrial" and 59,600 as "industriaF^ and "material," viz., those using fruit, wine, pomace, hrewers' grains, etc. These two sums may be taken as fairly representing the numbers in the city and in the country. In 1895^ there were 1,167 distilleries in the twenty-eight cities of over 100,000 population. Berlin is the center of the trade in spirits and has 213 stills. Breslau is also verv im- portant as a distillery city. Cologne, Hamburg, Stettin, Bremen and Danzig are the seats of many distilleries with a flourishing export trade. In the South, Munich and Xuer- emberg are most important. d. Character. Distilling in Germany has not developed to such an extent as brewing into a great, independent industry, but has re- mained more nearly than the latter closely connected with and largely carried on as an auxilliary activity of agriculture. Two kinds of beer are brewed, the top-fermented or "Weiss' beer, in which the yeast works from above downward, and the bottom-fermented or "lager" beer in which the contrary is true. The brewing of top-fermented beer is a comparatively simple process, and formerly it was common, particularly in Northern Germany, for farmers to own small breweries in which they used considerable quantities of self -raised barle;)* and hops, selling the product to inn-keepers or owning inns in which the beer was retailed, while the brewers' grains were fed on the place. But the introduction of beer of the Bavar- ian or lager type since 1835, and the change in the taste of the people, w^hich now demands the improved beverage, has almost entirely driven brewing from the country. The manufactura of lager beer is a complex process, demanding an extensive outlay of capital for the plant, and technical skill of a higli order for the production of beer that is able to compete with that brewed by the great city plants. So brewing has almost ceased to be a side activity of agriculture, and remains im- 1. Vol. 116 Stat, des Deut. Reiches, "Gewcrbe Statistik der Grossen Staedte.' 25 portant only as furnishing a verv extensive market ior the products of the soil. Distilling, on the other hand, answers all the requirements of an excellent business to Ix; carried on in connection with agriculture. A large investment of capital is not necessary, as a small, simple still can produce as good raw alcohol as the larger, better equipped establishments, though the latter ex- tract a higher per cent, of spirits from the same quantity of mash and at a less cost. Then it is claimed that they make possible the utilization of materials whose transportation to the markets would not pay on account of low prices, i. e., potatoes, etc. The by-products of the still (schlempe) enable the farmers to keep more cattle than otherwise, through which there is an increased production of meat and manure, the latter making possible a more rational agriculture. It is true that transportation is not as difficult a problem as formerlv, but it is still of importance, particularly in the eastern provinces of Prussia, where the roads are very poor. In Germany one of the greatest difficulties the farmer has to meet is the supply of food for the cattle. With intensive Agriculture, made necessary by the high price of land and •dense population, the meadows and swamps are more and more brought under cultivation. This causes a rise in the price of hay and scarcity of pasture, and no fodder crop such as Indian corn is grown. Distilleries furnish a very cheap and excellent food in their residues, as most ,of the nourishing elements remain after the fermentation. Consequently, if the alcohol produced pays for the materials used, the entire value of the "schlempe" for feeding is gained. "Schlempe'' has the quality of increasing the flow of milk and in addition a great quantity of manure, which is so scarce and so valuable, is produced. The more rational agriculture increases the fer- tility of tlie land and so the ground rent. In addition it is more easily possible for the farmers to employ the laborers during the winter months, which for the latter is of greatest importance in agricultural districts. For these and other reasons a large number of enterprising farmers maintain distilleries in connection with their busi- 26 ness. The exact number of such j^lants it is difficult to ascer« tain. In the census of 1895, 5,922 are reported. Swpftf Fnrmts ~~ i Agriculture Connected I Per" ^^^® ®^ Farms. ^ ^y .^j^ DistilUng. 1 Cent. Under 2 ha 2-5 ha 5-20 ha 20-100 ha 689 388 1041 1042 . 2762 11.65 6.a& 17.58 17.60 Over 100 46 64 5922 100 The percentages show that they are usually found on the middle and large-sized farms, as would be expected. But the number is evidently much too small, as the census was taken in the middle of summer when the country stills are not in operation. According to the revenue law those agricultural stills in operation not more than eight and one-half months, between September 16tli and June loth, are only taxed from six to nine-tenths of the regular rate, while those operated during the summer pay an extra tax of from 1 to 3 marks a hectoliter. The lower rate is granted by the government for the encouragement of agricultural distilling. The following data^ give a better idea of the real number of country stills. During the fiscal year ending October 1, 1901, there were in operation 74,840 distilleries. Of these 11,960 were classified as "agricultural," 1,211 as "industrial," while the remainder, 61,669, used materials "not mealy" in char- acter, such as fruit, pomace, wine, brewers' grains, etc. The by-products of these stills cannot be fed to animals as a rule, but they are usually connected with agricultural operations. By "agricultural" distilleries are meant those in operation only during the period indicated by the revenue law in which "the owner distills grain or potatoes raised by himself ex- clusively, feeds the 'schlempe' to animals owned on the farm, and uses the manure to fertilize the land." The government is very strict in this classification. "Industrial" distilleries are those run as an independent business, with the idea of 1. Vierteljahrsschrift zur Statistik, etc., for the different years, art. 'Brannt- wein." 27 direct profit from the spirits produced. Those taxed as agri- cultural were 16 per cent, of the entire number operated in 1901, and excluding the fruit stills 90 per cent, of all, whicli last per cent, indicates the great importance of this branch of the industry. Since 1887 there has been an increase in their number of 1,273, but entirely among those using grain, while the potato stills declined slightly. The latter numbered 6,250 in 1887-88 and 5,796 in 1900-1, while the former were 4,431 and 6,164 respectively. Industrial distilleries have also been increasing, chiefly among those using potatoes, or from 12 to 61. G-rain stills declined slightly froni 953 to 884. However, 1900-01 was an exceptional year, the number having been over 1,000 for the five preceding seasons. Those establish- ments using other materials remained fairly constant in num- ber. A consideration of the distilleries according to the amount and character of the alcohol produced is interesting. In 1899^ there were 60,926' distilleries operated of which 45,913 or 75 >per cent, produced not more than one-half a hectoliter of pure alcohol; 10,395 more produced between 5 and 100 hectoliters, or 88.5 per cent, of all did not yield over 100 hecto- liters, showing how small the great majority are. Of the re- mainder 1,996 are in the class between 100 and 500 hecto- liters, 1,298 l)etween 500 and 1,000 hectoliters, 1,302 between 1,000 and 5,000 hectoliters, and 22 above 5,000 hectoliters. Of the smallest class 41,014 used fruit, wine, etc. Among agricultural stills the average product is much greater, partic- ularly in those using potatoes. In 1899 there were 13,367 of the agricultural plants; 4,776 of thom were in the one-half hectoliter class, of which 4,395 used grain and 381 potatoes. The grain stills of the agricultural type are mostly small, only 493 exceeding 100 hectoliters. On the other hand, 3,764 of the 5,530 agricultural potato stills exceed 100 hectoliters and 1,183 exceed 1,000 hectoliters of product. The existence of so many small grain stills has been explained before as being possible through the direct retail of the product at high prices 1. V. j. 8. zur. Statistik etc., 1900 ; vol. 2, p. 154. 28 while the potato spirits must be refined before it is fit to be drunk. Auiong industrial distilleries are found two classes, the very small ones and the largest plants in Germany produc- ing up to 21,000 hectoliters, and representing the highest in- dustrial development in the manufacture of alcohol. . The number of industrial stills of all kinds in 1899 was 1,226, of which 41 used potatoes, 1,0(U grain, 29 molasses and 192 other materials. 35 of the potato stills produced amounts not above 100 hectoliters and 2 alone exceeded 1,000 hectoliters. 317 of those using grain did not exceed 100 hectoliters. Of the remainder 14 exceeded 5,000 hectoliters and 56 were be- tween 1,000 and 5,000 hectoliters. Xone of the inolasses (rum) distilleries were under 100 hectoliters, while 7 exceeded 5,000. None of the by-product stills have large capacities, 1 using brewers' grains reaching 2,000 hectoliters, but only 13 of the entire number exceeding 100 hectoliters. Prussia con- tains most of the large distilleries or 38 per cent, of all pro- ducing over 500 hectoliters. The apparatus used in the majority of the stills is of the simplest kind, only 6.5 per cent, being able to fmish the pro- cess of distillation in one operation in 1899. Prussia is mucl:^ better equipped than any other State, and contains '89 per cent, of all the continuous apparatus. Those in South Ger- many are mostly very primitive.^ As might be inferred from the size of the distilleries, the business organization is, with few exceptions, private in char- acter, and the number of corporations and stock company dis- tilleries is very small when compared with the brewing indus- try, which had 425- stock companies with a capital invested of over one billion marks in 1899. In 1898 there were only 25 distilleries organized as stock companies with a ])ai(l up capital of 35 million marks. The idea of co-operation, largely borrowed from England, has spread rapidly in Germany in recent years and co-opera- tive societies of various kinds, many aided by the government. 1. V. j. 8. zur. Statistik, 1900 ; vol. 2, p. 134. 2. Richard Wolf, Jahrbuch fuer die Deutschen Actien Brauereien, rJOO. 29 have been organized. These are chiefly found among the poorer middle classes and particularly among the farmers.^ There were in Prussia in 1898 8^310- such societies. Of them 5,292 were credit associations for loaning money to the farmers at lower rates than the banks; 1,570 were "pro- ductive"' societies for co-operation in the production of some commodity, such as creameries, wine presses, breweries, dis- tilleries, bakeries, etc., and. finally 591 so-called ^'Konsun- Vereine,'' or co-operative stores, meat markets, etc. In ad- dition there are numerous "A'erkaufsgenossenschaften," or co-operative societies among farmers to secure better prices for their produce, storehouses, elevators, etc., being frequently built. The low price for raw spirits, and. the difficulty of maintain- ing an existence when hampered by inefficient distilling ap- paratus, has led, within recent years, to the formation of num- erous co-operative societies among the smaller farmers for car- rying on distilling and for disposing of the product. The land-owner had to use his fallow crop, the potato, and needed the *^schlempe" for fodder, but in many cases .with j^rimitive stills distilling could not be carried on except at an absolute loss. Consequently societies have been formed, money has been borrowed from the government at a low rate, and this, together with what the members have contributed, has enabled them to establish neighborhood stills with modern apparatus and economic production. There are no imperial statistics of the co-operative societies and the data is very scanty. In 1895-90 there were reported to be 39 such distilleries. By 1897-98 the number had risen to 114 and in 1898-99 it was 128. The majority are in Prussia, which contained 54 on June 30, 1898.^ e. Labor. According to the statistics of manufacture there were on 1. For co«operation in Germany see " Das landwirtschaftliche Gennoss En- schafiwesen in Deutschland," Ertel u. Licht. Vienna, 1899, 2. From a catalogue of Prussian co-operative societies existing June 30, 1898, issued by the Central Co-operative Bank, in Berlin. 3. Vierteljahrshefte zur Statistik, etc., 1897, ii., p. 117; '98, ii., p. 57; '99, ii., p. 144; 1900, ii., p. 114. 30 June 14, 1895, 35,458 jiersons actively eiiii3loyecl in distil- leries. This, of course, represents only those connected with the larger industrial establishments. We have mentioned be- fore the great importance of distilleries to the country popu- lation, as giving employment during the winter months when work is so difficult to secure. Tlie numbers thus engaged for several months of the year cannot be ascertained for they are classed in the census as laborers, but it must be large in order to run the 13,000 agricultural stills. We will not consider the thousands who run the brandy stills for a few days or weeks, as they are really fruit gardeners and vine growers. Tlie wages as a rule are very low, few receiving over four marks or one dollar a day, which is taken as the standard and paid by the trade-insurance society in case of injury, though the majority receive much less. In addition to the poor pay the conditions of labor are not good. The hours are very long, many distilleries running night and day during the sea- son. The shortest day is twelve hours under these circum- stances, and in many plants, which are run short-handed for the sake of ecc^omy, the hours are much longer. Through the courtes}' of the director in Berlin we were al- lowed to examine the books of the Brennerei-Berufs-genossen- scliaft (distillers' trade insurance society), and thus were enabled to learn the wages paid the men in different parts of the em])ire in 1900. The following facts are typical of num- erous other establishments. In an agricultural distillery in the province of Posen the common laborers received from 1 to 1.50 marks daily, and the chief distillers alone over four marks. In a stock company distillery in Brunswick the com- mon laborers received under 4 marks, and the chief distiller 1,500 marks annually. In Xordhausen, the great distillery city of the Hartz, the representative firm of Friederick Degen, Successor paid their common labor all under 4 marks, and only 3 skilled workmen over 4 marks. In Gruenwincklc, Baden, a large establishment, the Gesellschaft fuer Spiritus and Press- hefe, paid all their common laborers, 141 in num])er, under 4, marks, bovs 1.80 marks, and a few skilled laborers over i 31 marks. In Hamburg, the firm of Peters paid 72 under 4 marks, 8 skilled men over 4 marks, and 7 boys 3 marks. The wages are lowest in West Prussia and Posen, where the common distillery laborer, in many cases, does not receive more than 1 mark and from that to 1.30 marks, or from twenty-five to thirty-seven and a half cents a day. These con- ditions exist, though there is a great scarcity of labor. The men of the provinces go in great numbers to the West, where they work in the mines and factories at much better wages, and Poles and Bohemians come in to take their places who are satisfied with the miserable amount paid. The best wageb for common labor are paid in Saxony and in the manufactur- ing districts along the Ehino. /. Materials Used. 1. Potatoes. Of all the materials used in distilling in Germany potatoes are the most important, 81.5 per cent, of all the alcohol pro- duced being made from them. In describing the develop- ment of the industry in Prussia in the early part of the cen- tury, we mentioned the introduction of the potato as a root crop for the fallows, particularly in the sandy portions of Northern Grcrmany. Other fallow crops such as turnips, beets, etc., have been introduced, but the potato has always re- mained the principal one. In 1898, 10.8 per cent, of the arable land of the empire was planted to potatoes; rye and oats alone having a greater acreage. Of the crop harvested about 9 or 10 per cent, is annually distilled into alcohol. The average for the last ten years is 9.25 per cent., while that for 1898 is 9.5 and for 1899, 10.5 per cent. We have placed to- gether the acreage, the amount harvested and the amount dis- tilled in the various districts in 1899, in order to ascertain the proportion distilled in different sections of the country. The per cent, of the crop distilled in East Prussia was 15.5; West Prussia, 17.2; Brandenburg, 18.3; Pomerania. 21.5; Posen, 21.3; Silesia, 14.5; Saxony, 6.1; Schleswig-Holstein, .5; Hanover, .4; Westphalia, .0; Hesse-Nassau, 1.1 ; Rhine Province, .1; Holhenzollern, .1; Kingdom of Prussia, 12.8; 3:2 Bavaria, 3.G; Saxony, 9.9; Wurteniberg, .G; Baden, .7; Hesse,. 2.7; Mecklenburg, 5.8; Thuringia, .8; Brunswick, 2.8; An- halt, 12.8; Alsace-Lorraine, .2; Germany, 10.5. The seat of potato culture is in the Eastern in-ovinces of Prussia, and here the amount distilled is very large, being nearly one-fourth of the quantity availa1)le. It would be difficult to overestimate the importance of the potato and the alcohol industry to the farmers of these districts. The quantity of potatoes made into alcohol annually varies greatly with the crops, but on tlie whole there lias been a de- crease in the last twenty years, except for the last few years, from the amounts used before 1887. The estimates in 1,000' tons for a number of years follow, a ton being 1,000 kilo- grams:^ 1887-88, 2,009; 1888-89, 1,699; 1889-90, 2,083; 1890-91, 1,686; 1891-92, 1,335; 1892-93, 1,947; 1893-94, 2,148; 1894-95, 1,804; 1895-96, 2,210; 1896-97, 2,116; 1897-98, 2,261; 1898-99, 2,586. 2. Grain. Xext in importance among the materials used is grain, chiefly rye, though within recent years a considerable quantity of Indian corn alcohol has been produced. Some malted bar- ley is necessary in preparing the mash and small quantities of buckwheat are also distilled. Eye is the principal breadstuff of German}', relatively little pure wheat bread being made. As such it stands first m acreage among the agricultural crops, 5,495,191 hectares or 21 per cent, of all the land under cultivation being planted to this grain in 1899. The average crop is between seven and one-half and eight and one-half million tons. Of this over 80 per cent, is grown in Prussia, the provinces of Posen, Silesia» Brandenburg and Hanover producing the largest amounts. In South Germany, Bavaria produces from seven to eighi hundred thousand tons, or as much as Posen. The amount distilled is relatively small. Before 1895 the various kinds of grain Avere grouped together in the statistical tables. The following data, however, gives a fairly good idea 1. From Monatshefte, and V. i. s. zur St atistik, etc., for various years. •33 of the rvc used, as only a relatively small amount of barley and t)ther grains were distilled. The estimates are in thousand tons: 1887-88, 205; 1888-89, 329; 1889-90, 332; 1890-91, 350; 1891-92, 491 ; 1892-93, 323; 1893-94, 325; 1894-95, 322; 1895-96, 293; 1896-97, 265; 1897-98, 270; 1898-99, ^82.^ Taking 280,000 tons as the quantity used by the dis- tillers in 1899, we find that it was 4 per cent, of the amount remaining in the country for consumption after deducting ex- ports and seed and adding imports. The distillation of Indian corn has been increasing ver}' rapidly in recent years. The amount so used has been sep- arately reported for four years only, but in that time the quan- tity has nearly doubled. In 1895-96 there were used 36,797 tons; 1896-97, 46,871; 1897-98, 59,765- 1898-99, 59,801. The corn used is entirely imported, chiefly from America and Russia. Germany is a growing market for this product. There were also used in 1899 3,621 tons of "other mealy materials,'^ representing chiefly potato starch and the wastes of starch manufacture. 3. Molasses. The distillation of rum from molasses is at present of little importance. In the early years of the beet sugar industry the last product of sugar-making, molasses, was placed upon the market at low prices and large quantities were used for distilling purposes. But .with the advance in the technic of sugar manufacture methods of more perfectly crystalizing the sugar were discovered. Consequently, the price of good molasses raised greatly, and that from which the sugar had largely been extracted was an unsatisfactory raw material for distilling. In addition, alcohol from molasses is usually from one to one and one-half marks lower in price than potato or grain spirits. These conditions have greatly depressed this once flourishing branch of distilling. In 1895 a further hindrance was placed in its way by the restrictions of the graduated distilling tax of that year, ac- cording to which the molasses distillers must pay an extra tax 1. Sources same as for potatoes. 34 of 15 marks a hectoliter for all the spirits produced above twenty i^er cent, more than the tax-free quantity — the so- called "Kontingent"— allotted them by the law *^ of 1887.^ This sets a limit on production which cannot be exceeded, even under the most favorable circumstances, and though the price of molasses has been very low of recent years the rum pro- duced has not increased in amount. The distillers using molasses are chiefly located in the beet sugar districts of Xorthern Germany, the province of Saxony, Anhalt, Hanover, Brunswick and Silesia. The city of Madgeburg is the center of the sugar industry as well as of molasses distilling. The number of tons of molasses and beets used in recent years follow : 1887-88, 27,720 ; 1888-80,. 25,487; 1889-90, 28,039; 1890-91, 73,541; 1891-92, 95,370;. 1892-93, 37,461; 1893-94, 33,826; 1894-95, 76,459; 1895-96,. 43,006; 1896-97, 44,540; 1897-98, 46,970; 1898-99, 34,986. 4. Other Materials. The other materials used are chiefly brewers' grains, fruit,, wine, pomace, etc. The amount of brewers' grains has de- clined greatly in recent years, being better utilized as cattle food when spirits are low in price. The following statistics are in thousand hectoliters : 1887-88, 299; 1888-89, 279 1889-90, 233; 1890-91, 237; 1891-92, 253; 1892-93, 225 1893-94, 188; 1894-95, 180; 1895-96, 183; 1896-97, 165 1897-98, 128; 1898-99, 116. Fruits, wine and pomace depend entirely on the crop, but the production of brandy is considerable as the materials used show: 1887-88, 414 thousand hectoliters; 1888-89, 1,076; 1889-90,552; 1890-91,684; 1891-92, 670; 1892-93, 678;. 1893-94, 1,527; 1894-95, 1,034; 1895-96, 679; 1896-97, 909;. 1897-98, 789 ; 1898-99, 708. g. Product. In the quantity of alcohol produced Germany stands first among the Nations, Eussia probably follows, and then come France, the United States and Great Britain. The following data have been compiled from the statistical publications of 1. See Vierteljahrshefte zur Statistik, etc., 1897, vol. ii, p. 116. 35 the nations mentioned. No estimates for Austria are avail- able since 189 G, and the amounts of several others have been beyond our reach. The quantity for Russia is somewhat un- certain, but it is official: Germany produced 295.1 million liters of pure alcohol in 1895; 1896, 333.3; 1897, 310.0; 1898, 328.7; 1899, 381.5. Russia's amount for 1895 was 353.7; 1896, 373.1; 1897, 359.4; 1898, 344.5. France in 1895 yielded 216.5; 1896, 202.2; 1897, 220.8; 1898, 241.2; 1899, "^260.0. The United States in 1895 reported 154.9; 1896, 170.1; 1897, 121.6; 1898, 158.3; 1899, 189.4. Great Britain in 1895, 117.1; 1896, 128.7; 1897, 142.0; 1898, 158.3. Austria, 1895, 138.8; 1896, 139.7. Hungary, 1895, 94.2; 1896, 94.4; 1897, 102.6; 1898, 105.4. The amounts and kinds of alcohol produced in Germany since the formation of the Union in 1887 and the introduc- tion of the new system of taxation are contained in the follow- ing table. 36 111 ^11 4) O .III 1 . '3 O o 1 CO i "5 r. w 3 C CQ s O O "5 1- 3 3 C3 11 3058025 2727051 3144801 29()9149 2948244 3028910 32()-JG85 2951671 3333648 3100505 3297890 381 5509 C5 t^ eC lO O O CO -O — i-t! 5^1 -o O «5 Ci CC l^ I- O «5 "-C OO i-r -f O — iOC0-<^iCr-l^00CJiOtX> OO — 'M(MCiCO-t<'Mt^(MQO i.T t^ Tft ,— 1 O lO --O 00 (M t^ •*« (N l-l-OOOOOOS — C^-MCOO 1 ■^ C0-^ CC CO «5 CC lO (M Oi I- -M ci — lO 00 c*|co -fr-OrtCtOOrf^CCTtiCOCO 0(M--cc:i3^i.-it-.i:^^OOiO i-;C'^cocCTjiTriOfM(M(Meo c^cocoeocococoeocococooo TfirfiZoaoot^OiOfMC^ClaO Oico^;o-f3COQCt^ooi:o OOt^OtOCOCOOXCOO"^-^ oi--^co(MOTr-T>Qci-oco l^ Oi t- — Ci -v iC (M 5<1 GO t^ ■^o— 'co-^tocoj^ — ocoto coxiocoi^t^oci--cr;c;oo iOOCD(M^COiO — OCCiO^ l>-HCCOiO-^ 5M(M(Mo;oiCi05ocr50»c:50i K« 1 l^00C5O-^C