Rum-running, or bootlegging, is the illegal business of smuggling alcoholic beverages where such transportation is forbidden by law. Smuggling circumvents alcohol taxes and outright prohibition of alcohol sales.
Alcohol smuggling today In the United States, the smuggling of alcohol did not end with the repeal of prohibition. In the Appalachian United States, for example, the demand for moonshine was at an all-time high in the 1920s, but an era of rampant bootlegging in dry areas continued into the 1970s. Bootlegging still exists, even if on a smaller scale. The state of Virginia has reported that it loses up to $20 million a year from illegal whiskey smuggling. The Government of the United Kingdom fails to collect an estimated £900 million in taxes due to alcohol smuggling activities. Absinthe was smuggled into the United States until it was legalized in 2007. Cuban rum is also sometimes smuggled into the United States, circumventing the embargo in existence since 1960.
Etymology The Oxford English Dictionary records the word-form "bootlegger" as in use from 1889 onwards. According to the 2011 PBS documentary Prohibition, the term bootlegging was popularized when thousands of city dwellers sold liquor from flasks they kept in their boot legs all across major cities and rural areas. The term rum-running was current by 1916, and was used during the Prohibition era in the United States (1920–1933), when ships from Bimini in the western Bahamas transported cheap Caribbean rum to Florida speakeasies. However, rum's cheapness made it a low-profit item for the rum-runners, and they soon moved on to smuggling Canadian whisky, French champagne, and English gin to major cities like New York City, Boston, and Chicago, where prices ran high. It was said that some ships carried $200,000 in contraband in a single run.
History
It was not long after the first taxes were implemented on alcoholic beverages that someone began to smuggle alcohol. The British government had "revenue cutters" in place to stop smugglers as early as the 16th century. Pirates often made extra money running rum to heavily taxed colonies. There were times when the sale of alcohol was limited for other reasons, such as laws against sales to American Indians in the Old West and Canada West or local prohibitions like the one on Prince Edward Island between 1901 and 1948. Industrial-scale smuggling flowed both ways across the Canada–United States border at different points in the early twentieth century, largely between Windsor, Ontario and Detroit, Michigan. Out of all of the liquor smuggled into The United States during Prohibition, 75% of it came through Detroit. Although Canada never had true nationwide prohibition, the federal government gave the provinces an easy means to ban alcohol under the War Measures Act (1914), and most provinces and the Yukon Territory already had enacted prohibition locally by 1918 when a regulation issued by the federal cabinet banned the interprovincial trade and importation of liquor. National prohibition in the United States did not begin until 1920, though many states had statewide prohibition before that. For the two-year interval, enough American liquor entered Canada illegally to undermine support for prohibition in Canada, so it was slowly lifted, beginning with Quebec and Yukon in 1919 and including all the provinces but Prince Edward Island by 1930. Additionally, Canada's version of prohibition had never included a ban on the manufacture of liquor for export. Soon the black-market trade was reversed with Canadian whisky and beer flowing in large quantities to the United States. Again, this illegal international trade undermined the support for prohibition in the receiving country, and the American version ended (at the national level) in 1933. One of the most famous periods of rum-running began in the United States when Prohibition began on January 16, 1920, when the Eighteenth Amendment went into effect. This period lasted until the amendment was repealed with ratification of the Twenty-first Amendment on December 5, 1933. At first, there was much action on the seas, but after several months, the Coast Guard began reporting decreased smuggling activity. This was the start of the Bimini–Bahamas rum trade and the introduction of Bill McCoy.
With the start of prohibition, Captain McCoy began bringing rum from Bimini and the rest of the Bahamas into south Florida through Government Cut. The Coast Guard soon caught up with him, so he began to bring the illegal goods to just outside U.S. territorial waters and let smaller boats and other captains, such as Habana Joe, take the risk of bringing it to shore. The rum-running business was very good, and McCoy soon bought a Gloucester knockabout schooner named Arethusa at auction and renamed her Tomoka. He installed a larger auxiliary, mounted a concealed machine gun on her deck, and refitted the fish pens below to accommodate as much contraband as she could hold. She became one of the most famous of the rum-runners, along with his two other ships hauling mostly Irish and Canadian whiskey as well as other fine liquors and wines to ports from Maine to Florida. In the days of rum running, it was common for captains to add water to the bottles to stretch their profits or to re-label it as better goods. Often, cheap sparkling wine would become French champagne or Italian Spumante; unbranded liquor became top-of-the-line name brands. McCoy became famous for never adding water to his booze and selling only top brands. Although the phrase appears in print in 1882, this is one of several false etymologies for the origin of the term "The real McCoy". On November 15, 1923, McCoy and Tomoka encountered the U.S. Coast Guard Cutter Seneca just outside U.S. territorial waters. A boarding party attempted to board, but McCoy chased them off with the machine gun. Tomoka tried to run, but Seneca placed a shell just off her hull, and William McCoy surrendered his ship and cargo.
The Rum Row
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