164 GIBBS. 



more inefficient plants will give way to centrally located distilleries 

 which will draw iipon a large area for the raw material. 



COSTS. 



The average price paid for the distilled beverages at the distillery is 

 0.475 peso per liter (0.352 peso per proof liter) to which must be added 

 the internal-revenue tax of 0.25 peso per proof liter. The cost of pro- 

 duction was found to vary from 0.19 to 0.22 peso per proof liter. These 

 figures, it is to be noted, were furnished us by four different distillers 

 and they show a profit to them of about 0.15 peso per proof liter. I 

 have no doubt that this is greater at some distilleries. With scientific 

 management it could be greatly increased at every distillery engaged in 

 the industi*y. 



A survey of the factors which govern the cost of the raw material 

 indicates at once that, while as a source of industrial alcohol this cost 

 is excessive, the profit to the distiller of beverages is large. In many 

 localities the standard price of tuba is 0.01 peso per liter. If the alcohol 

 production is taken at 6.5 per cent by volume, the cost of the raw material 

 to produce 1 proof liter of alcohol is 0.077 peso and for 1 liter of alcohol 

 of 180 proof, 0.138 peso. In some localities the price of tuba delivered 

 at the distillery is 0.012 peso. 



A typical case representing the cost of the raw material to one distiller 

 is as follows: 



He rents 1,800 trees for 1 peso each per year and obtains about 219.6 liters 

 of tuba per tree. He pays 0.15 peso for the gathering of each 19.5 " liters, which 

 makes the cost of each liter 0.0124 peso. The records of his distillery show 

 that he obtains an average of 6.07 per cent (by volume) of alcohol from the 

 tuba. The raw material thus costs him 0.0976 peso to make one proof liter of 

 alcohol and 0.176 peso for one liter of alcohol of 180 proof. 



As a source of alcohol much cheaper native substances are to be found. 



The ordinary pot or whisky still, usually without a doubler, is the 

 standard apparatus employed. (See Plate XIII.) The cost in pesos 

 of such a plant, typical of provincial practice, is as follows : 



Stills and condensers in Manila 



PI, 300 



Freight and mounting 



500 



Building 



250 



Four tanks 



750 



Total 1,800 



Before operation is commenced, an internal-revenue tax of 200 pesos 

 must be paid. This latter item is repeated annually. 



°* The standard of 19.5 liters which is so often used is the capacity of the 

 5-gallon Standard Oil Company's tin, which is so much used in the provinces 

 that it has a standard value. 



