A History of Sake Brewing in the U.S. (Part 2)

Sake and Hawaii

Let's now explore the early connections between Sake and Hawaii, which would eventually become significant to the entire Sake industry, even in Japan. 

According to the Honolulu Star-Bulletin (HI), July 08, 1916, "Prior to the migration of white people to Hawaii, a little over 100 years ago, alcoholic liquors were unknown to the natives. It was at the time of Kamehameha I that some escaped convicts from Botany Bay taught the Hawaiians the art of distilling, and so rapidly did the evil spread that this great ruler in 1818 enacted a law prohibiting the manufacture and consumption of liquor in order 'to save my people,' as he said. This was the first law of its kind enacted anywhere." 

Other sources allege that around 1790, William Stevenson, an escaped convict from Australia, taught the Hawaiians how to distill alcohol. Queen Kamehameha and Kamehameha II were also both prohibitionists, maintaining the law promulgated by Kamehameha I. However, in 1833, Kamehameha III lifted the prohibition. 

Although a few Japanese sailors ended up on the west coast of the U.S., at least as early as the 1830s, there are oral traditions of such Japanese sailors ending up on the islands of Hawaii as early as the 13th century. Some of those Japanese sailors might have had Sake, but there's no documentation concerning those earliest sailors. 

It wouldn't be until the early 19th century, that there was written evidence of Japanese sailors landing in the Kingdom of Hawaii, and spending a significant amount of time there. For example, one Japanese fishing vessel became stranded on an isolated island, and were eventually rescued by Captain W.H. Whitfield of the whaling ship John Howland on June 27, 1841. He brought the five Japanese fishermen to Hawaii, and four remained in Hawaii while the Captain “adopted” the 15 year old Manjiro Nakahama. Manjiro lived with the Captain for three years in Fairhaven, Massachusetts, although he returned to Hawaii in 1846. 

Sugarcane had existed in Hawaii since around 200 A.D. when it had been brought to the islands by the Polynesians. In the late 1840s, sugar started to become an important crop in the Territory of Hawaii, and it was primarily foreign businessmen, mostly whites, who saw the great financial opportunity of selling Hawaiian sugar to the U.S. By 1850, Hawaiian law changed, allowing foreigners to finally be able to own land, so now they could purchase significant amounts of land to set up large sugar plantations. The biggest problem though was acquiring the requisite workers to work on those plantations. 

Initially, native Hawaiians were hired as plantation laborers but there weren’t a sufficient number available. Some had traveled to California because of the gold rush. More importantly, native Hawaiians had faced a serious death rate, due to foreign diseases of which they lacked immunity. For example, there was a measles epidemic in 1848 and a smallpox epidemic in 1853. From 1831 to 1860, the population of native Hawaiians dropped by over half, from about 131,000 down to 66,000-71,000. 

Thus, Hawaii passed the Masters & Servants' Act in 1850, allowing employers to hire foreign laborers. The exploitative plantation owners wanted hard workers they could hire for low wages. In 1852, the Chinese were the first foreigners hired under this Act to work on the plantations. Although they were hard workers, they had difficulty with the crowded and unsanitary living conditions as well as the harsh working conditions. Within ten years, few Chinese were interested any longer in working on the plantations. The plantation owners had to seek elsewhere. They were unable to hire many Polynesian workers and although they considered hiring Europeans, such workers would have been too expensive. Thus, they turned toward attempting to hire Japanese workers.

In 1868, the first Japanese immigrants, the gannen mono, arrived in Hawaii, despite some legal issues, aboard the Scioto, a British ship. Gannen mono means the “first-year people” as they traveled to the Kingdom of Hawaii in the first year in the reign of Emperor Meiji. Though Hawaii wanted at least 350 laborers, only about 148-153 Japanese (different sources providing different numbers), actually stepped forward, including roughly 140 men, 5-6 women (who accompanied their husbands), and 2 teenagers. During the voyage, one man died but a baby was also born. Sadly, one of the Japanese men committed suicide less than two weeks after their arrival in Hawaii. 

Their passage to Hawaii was fully paid and they were to receive a salary of $4 per month, including room and board, for a three-year period. This group consisted of “samurai, cooks, sake brewers, potters, printers, tailors, wood workers, a hairdresser and a 13-year-old heavy drinker nicknamed ‘Ichi the Viper.’" Ichi's full name was Ishigoro, though, because of all the trouble he caused, he earned the nickname, Mamushi-no-Ichi (Ichi the Viper). He would eventually clean up his act and started a cooking school in 1893, although he eventually returned to Japan in 1933.

What is most important here is that Sake brewers were part of this initial group. It seems reasonable that some of these immigrants might have brought Sake with them to Hawaii. Sake is an important beverage, one often used to celebrate special occasions and holidays. The immigrants would have wanted a slice of their home with them, and Sake could be such an element. As Sake probably wasn't a significant import at that point, they might have brought Sake brewers with them, so they could produce enough, albeit illegally, for their small community.

Although a few of the gannen mono received jobs as domestic servants, the vast majority were assigned to working on sugar plantations. They all were supposed to work for a contractual three year period. According to The Japanese in Hawaii, by Dorothy Ochiai Hazama and Jane Okamoto Komeiji, “The Japanese immigrants thought Honolulu in 1868 looked like a sleepy fishing village. They saw narrow streets lined with brick and wooden buildings – small Chinese shops, a fish market, a blacksmith shop, a post office. They saw taro patches, Chinese rice paddies, and groves of trees.” 

Unfortunately, many of these immigrants had no knowledge of farming and the Japanese government received many complaints from them about their harsh treatment by the Hawaiians. The Japanese worked long hours, had issues with the great heat, and some even got whipped by the plantation overseers. A year later, the Japanese sent an envoy to investigate and found the complaints were all valid. 

The Hawaiian government promised to make the situation better for the plantation workers, but forty of the workers (including 3 women and 2 children) chose to return to Japan after only one year of their contract. In 1871, when the contract period ended, 13 more of the workers returned to Japan, so about 100 of the workers remained in Hawaii. 

At least a small amount of Sake was exported to Hawaii during this period. The Hawaiian Gazette, May 5, 1869, advertised an auction sale by Adams & Wilder for "a large variety of merchantable & desirable goods," including linens, soaps, tea, sugar, tobacco and "10 tubs of Japanese sake." The advertisement didn't specify the size of those tubs, however it seems evident much more Sake was being exported than would be needed for less than 150 Japanese. 

The fate of the gannen mono Sake brewers is unknown. Unfortunately, they were not named so it’s unknown how long they remained in Hawaii, and whether they returned to Japan with some of the other gannen mono. There also wasn't any mention that they had brewed Sake during this time, although if they had done so illegally, they would have wanted to keep it secret. 

After the problems faced by the gannen mono, the Japanese government decided to prohibit any further emigration to Hawaii, and banned it for about 15 years, from 1869-1884. In 1874, Kalākaua, who would later be known as the Merrie Monarch, became the King of Hawaii, reigning until 1891. In 1881, King Kalākaua began a diplomatic tour of the world, and spent ten days in Japan, trying to form a better relationship and lift the ban on immigration. After some intense negotiations, his efforts were eventually successful and he granted better terms for future Japanese immigrants, including increased pay, medical care, and a food allowance.

Japan would also be more selective in their choice of immigrants, seeking more people with farming experience, so as to not perpetuate the prior problems. It should be noted that Kalākaua was the first foreign ruler to ever shake hands with a Japanese Emperor, and he was also given a gift of a silver Sake set. It seems probable that Kalākaua also received some Sake to take home with him, and if so, it was probably of the highest quality.

When Japan sought new candidates to send to Hawaii, about 28,000 Japanese applied, a far greater amount than ever expected. Part of this was driven by tough economic conditions in some Japanese prefectures. Less than one thousand candidates were chosen, and this new group of workers arrived in Hawaii on February 8, 1885, to mainly work on the sugarcane and pineapple plantations. Out of the 943-948 workers, there were about 676 men, 150-159 women and 108-110 children (again, different sources differ on the exact figures). 

This group was the first of the kanyaku imin (“contract immigrants”), and they were accompanied by an envoy, Jiro Nakamura, whose mission was to establish a consulate in Hawaii to oversee the welfare of these workers. Nakamura would remain in Hawaii for about a year, before being replaced by another consul. The kanyaku imin was broken down into Farmers (610 men, 138 women, 58 boys, 37 girls) and Servants (56 men, 27 women, 11 boys, 11 girls), with 7 children under 15 years old. 

Upon their ship's landing, King Kalākaua organized a sumo wrestling exhibition at the Honolulu Immigration Depot. The wrestling was preceded by a fencing match called “Gekkin,” where men fought with five-foot long, wooden swords. After the duels, forty of the new immigrants, all amateur wrestlers, were divided into two teams, the East and West, and competed for about an hour. The East won, and the King had arranged for “ten tubs of sahkee” to be awarded to the winners. These tubs were about 18 inches in diameter and about 2 feet high, so each one held roughly 100 gallons of Sake. With that much Sake, I’m sure everyone got to drink some, not just the winners. I wasn't able to determine though how and where the King obtained the Sake. 

Four months later, in June 1885, another ship of about 983 Japanese workers arrived. Unfortunately, working conditions for these two group of workers, despite all the contracts to the contrary, weren’t much of an improvement from the initial problems. The Japanese had many complaints, including about physical beatings, and Japan officially protested. Hawaii took action to stop these serious problems. 

Most of the early Japanese immigrants were single men, and drinking became a common activity. For some, they used alcohol as an escape from the difficult plantation work and their separation from their homeland. As other Japanese immigrants began to travel to California and other parts of the mainland U.S., it's likely they brought Sake with them. 

It didn't take long for Japan to begin actively exporting Sake to the U.S. and the rest of the world. For example, it's known that in 1887, the Kiku-Masamune Brewery starting exporting Sake to the United Kingdom, and two years later, started exporting to the U.S. too. By 1890, Sake was readily available, as an import, in Hawaii and California.

From 1885-1894, about 29,000 Japanese workers, on 26 different ships, traveled to Hawaii. Of those people, about 8100 eventually returned to Japan, while about 1773 died, and there were about 1305 births. 

It would also be in 1894, that Sake became much more well-known on Hawaii, including numerous imports. For example, in January 1894, the ship, City of Peking, brought 796 packages of “saki” to Honolulu. Not all of the Sake coming into Hawaii was legal, and thus would get seized if it were discovered. In March 1894, there was an auction of unclaimed goods at the Custom House, including “two jars of saki.” 

In April 1894, a Japanese ship, the Aikoku Maru landed in Hawaii and the Custom Authorities seized 20 cases of Sake as they were not listed on the ship's manifest. This seized Sake was often later sold at auction. For example, July 1894, there was an auction sale of “Confiscated Merchandise,” which included 267 bottles of Saki, 66 bottles of Gin, and cases of Japanese Wine. There was an auction sale in August 1894, which including “22 dozen Saki.” And in October 1894, the ship S.S. Pekin brought 2285 cases of soy and Saki from Japan. Finally, in November 1894, it was reported, "The local saki market is flooded again. About 2000 tubs arrived on the Oceanic."

Sake became so popular in Hawaii that by November 1894, the California wine industry claimed that they were having difficulty in Hawaii competing with Sake imports.

The San Francisco Call (CA), September 24, 1893, provided some detailed information on the current status of the California Wine Industry. The article started with “Wine is a luxury. The poor can certainly do without it altogether, and numbers of the rich are very moderate consumers and almost disposed to apologize for having it on the table at all.” Especially in the Eastern region of the U.S., it was noted, “We are not a wine-drinking people at dinner, luncheon or supper. Water is the approved beverage at meals among the masses,…” It continued, “There are cities in Europe where more wine is drunk in a year than in the whole United States.” As for other alcoholic drinks, “… the United States is a rising consumer of beer and gives a steady patronage to whisky.” 

The main exception was New Orleans, which “... may be considered the one city where wine is commonly imbibed by all classes, and the habit is clearly traceable to the French stock in the population.” California sold numerous cheap clarets to New Orleans, as their prices were much less than they could import from France. It was also stated that, “San Francisco itself is estimated to dispose of the respectable quantity of 3,000,000 gallons, but as it is in a wine center it ought to be a wine city.”

In 1892, California produced about 16 million gallons of wine, exporting about 11 million and consuming about 5 million. Of the exports, about 3 million gallons were sweet wines. And of these exports, some of the markets included Central America (100K gallons), Hawaii (114K), Mexico (83K), Great Britain (73K), Germany (58K), Japan & China (43K), and British Colombia (19K). Wine prices varied greatly, usually due to age and condition, and could range from 18-24 cents a gallon, or $3-$12 for a case of bottles. 

The article also discussed the wine fraud industry, including some unscrupulous dealers who would generally use the better quality wines, and bottle them with foreign labels and corks. The dealers would then attempt to pass these wines off as authentic imported wines, from places like France and Germany. 

In 1893, Hawaii imported about 116,000 gallons of California wines, a value of about $84,000 (although another source valued it as $61,868). Most of those imports were sweet wines, and they were primarily purchased by the Portuguese and Japanese in Hawaii. In that same year, only about 3,400 gallons (although another source listed it as 8,083 gallons) of Japanese Sake, with a value of $5,405, were imported into Hawaii. 

In April 1894, Hawaii imported only about 626 gallons of Sake, but imports exploded to 16,094 gallons in July and 12,800 gallons in August, with a total amount of imports for 1894 being about 83,000 gallons. In 1894, California wine imports had also decreased to 90,684 gallons. A substantial amount of Sake imports continued so that in February 1896, Hawaii imported 18,672 gallons of Sake. The Japanese in Hawaii were avid consumers of Sake, and their demand seemed to only be increasing. 

The Hawaii Holomua-Progress (HI), August 13, 1894, also mentioned, “Salon-keepers all state that the national drink of Japan, ‘saki,’ is now becoming the popular drink with Hawaiians both on account of its cheapness and its ‘burning’ qualities.” Thus, it was far more than just the Japanese who were clamoring for Sake. 

The demand was so prevalent that it even started to become the target of a local temperance organization. The Hawaii Holomua-Progress (HI), August 21, 1894, reported, “The Womans’ Christian Temperance Union is holding a meeting this afternoon at the Central Union. ‘Saki’ the new popular drink amongst natives, introduced by the to-be Christianized Japs, is expected to be one of the subjects under discussion.”

It was also noted in the Hawaii Holomua-Progress (HI), August 23, 1894, in an article on the Japanese workers at the sugar plantations, that there had recently been some labor troubles. It was alleged that the management was the cause of ill-will among the workers. “The first complaint is that the manager has forbidden the laborers to have liquor on the premises of the plantation.” The Japanese “are used to drink ‘saki’ and wine and they insist in getting it.”

Sake's popularity spread to the non-Japanese living in Hawaii, primarily due to its cheap cost. The Hawaii Holomua-Progress (HI), September 11, 1894. mentioned, “Saki is now the favorite drink among the Hawaiians. It is preferred to sand paper gin on account of its cheapness while it possesses all the fiery qualities of the national drink. The cheapness is due to the small duty paid on it.”

The Pacific Commercial Advertiser (HI), October 11, 1894, noted, “… two years ago large quantities of plain California wine were shipped to this country. Today imports of saki from Japan have taken the place of these goods. Just the other day I saw a shipment of 80 cases of saki sent to one of the islands; two years ago 80 cases of wine went to the same place.”

California complained about the duty paid by Sake importers, stating it placed California wineries at an economic disadvantage. They claimed that Sake cost one-third less to produce than California wine but the duty was the same, only 15 cents a gallon. The implementation of regular steamer traffic from Japan to Hawaii also helped increase the amount of Sake imports. 

At this time, there were about 24,000 Japanese living in Hawaii, and they once bought plenty of California wine, until Sake became more readily available to them. In addition, native Hawaiians had been embracing Sake, mainly because of its low expense. 

Extensive details about the Sake trade were provided in the Hawaiian Star (HI), November 3, 1894. The article alleged, “Japanese saki has nearly driven California wines out of the Hawaiian market and threatens to completely annihilate the trade. This has taken place within five months,…” The article continued, “The saki is a light, sweet wine made from rice. It does not cost to exceed one-third of the grape product, and like it pays an entrance duty of only 15 cents a gallon. Previous to this year it has not come into serious competition with the Californian vintage, but now all is changed.”

Specific details were provided. “The entire importation in 1893 did not exceed 8,083 gallons and 258 cases, valued at $5,405.97, while for the same period the California wines were valued at $61,868. These latter are mostly of sweet varieties, such as muscats, Malagas, Madeiras, sherry port and angelica, on which, as in the case of its new Japanese rival, a duty of 15 cents a gallon is levied. The principal purchasers were the Portuguese and Japanese, with a certain sprinkling of Americans and English for the superior grades.” 

The article then stated, “Now, while the customs reports show that only 8000 gallons were imported last year, the same official sources show that 33,615 gallons were landed in Honolulu during the five months ended on August 31st.” The months included April (626 gallons), May (2,571 gallons), June (1,444 gallons), July (16,094 gallons), and August (12,800 gallons). It was also estimated that 18,000 gallons would be sold in September. “The reason for this phenomenal growth of the saki trade is the establishment of regular monthly steamer service with Japan. Merchants from that country have taken advantage of the situation to build up a business which is not only threatening death to the California wine trade, but has already cut badly into the American dry goods exportation.”

It was also noted, “While the consumption of saki has so increased, the demand for Californian wines has correspondingly diminished.” The population of Hawaii was about 93,000, and about 24,000 of those people were Japanese. It was said that Hawaii, “... until the introduction of saki, were the greatest consumers of wine from our State. The native Hawaiians have taken to drinking the saki because of its cheapness.”  

The San Francisco Call (CA), November 16, 1894, added, “The feeling of hope among grape growers over the formation of an association to handle California wines is somewhat dampened by news from the Hawaiian Islands. It appears that a drink known as saki, manufactured from rice in Japan, is being introduced into the islands and, on account of cheapness, is finding a ready sale. Nearly one-fourth of the population of the Islands are Japanese and they were at one time liberal purchasers of California wines. Now it is said that they find saki a tolerable substitute. The importation of saki has increased since Apr 1 from 626 gallons to 16,000 in July and 13,000 in August. The duty on saki is the same as on our wine— 15 cents a gallon.”

The Pacific Commercial Advertiser (HI), December 21, 1894, mentioned, “Our wine trade with the Islands last year amounted to $84,000. This year, although saki only began to make its appearance in quantities last April, this amount will be reduced one-third. For November the falling off was more than one-half. During November, 1893, the wine exportation to Hawaii was thirty-one cases and 24,370 gallons in bulk, valued at $11,910. For the same period this year the exportation was only eighty-six cases and 10,880 gallons, valued at $5,222. The American whisky trade with Hawaii is not large; it cannot be with a duty of $3.50 a gallon, while only 15 cents is asked for the Japanese rice extract.” 

Then, the Pacific Commercial Advertiser (HI), December 27, 1894, reported, “For 1893 the importation of California wines to this country amounted to 116,142 gallons. In 1894 these figures have dropped to 90,684 gallons,…” The article also noted, “During 1893 there were 9,889 gallons of saki imported to this country. For 1894 these figures are 72,958 gallons.” 

The Honolulu Star-Advertiser (HI), December 27, 1894, noted, "Saki, a liquor distilled from rice, is a 'pleasant sweetish tasting drink, and it is so intoxicating that it takes effect very quickly.' The saloon keepers of Honolulu are glad to buy it, as it is very cheap at wholesale, and they retail it (at a handsome profit to themselves) to the poor Hawaiians at a much lower cost than other liquors. The Hawaiians think it fine to get drunk at so cheap a cost." 

The article also mentioned that there had allegedly been a number of "crimes committed under the effects of saki." For example, the Honolulu Star-Advertiser (HI), December 6, 1894, reported, "A native was arrested last night for assaulting his wife. Japanese saki was the cause of the trouble." However, these crimes were basically alcohol-related matters, which would have occurred with any type of alcohol, and not just Sake. 

More Sake imports! The Honolulu Star-Advertiser (HI), February 22, 1895, advertised an "Auction Sale of Saki!" An unknown number of "Tubs of Japanese Saki," of seven gallons each, were offered and they were "Guaranteed in perfect order and condition." It’s unknown whether a 7 gallon tub was a standard or not at this time. 

The Pacific Commercial Advertiser (HI), February 28, 1895, mentioned, “In the yard at the rear of the Custom House are some 200 tubs of saki which soured on the way over from Japan and have been condemned by the Custom House authorities….” The Hawaiian Star (HI), April 1, 1895, stated, “A total of 1735 tubs of saki was landed by the Peru.” (a ship). And The Pacific Commercial Advertiser (HI), May 31, 1895, printed an auction ad, which included "75 Tubs of Fresh Saki." 

Bootleg Sake? The Honolulu Advertiser (HI), April 1, 1895, briefly noted, “Japanese are said to be manufacturing saki on Hawaii.” There’s no evidence that there was a legal Sake brewery on the island so this was likely bootlegging. This is the first mention of Sake brewing in Hawaii, legal or otherwise, although bootleg Sake probably existed for years before. With the cheap cost of Sake at this time period, any bootlegging was probably very small scale. 

The San Francisco Examiner, April 6, 1895, and other newspapers at this time, reported that in response to California's complaints, Consul General Ellis G. Mills investigated the matter, eventually filing a report with the State Department that concluded there were no actual grounds for concern. The report indicated that Sake imports to Hawaii in 1892 were only 3400 gallons while in 1893, the imports had risen to 30,000 gallons. As for California wine, they exported about 103,000 gallons to Hawaii in 1892 and 125,000 gallons in 1893. Thus, despite the large increase of Sake imports in 1893, California wine imports also grew in that same year. 

Mills concluded that California wine exports to Hawaii didn't decrease due to Sake imports, and actually grew. This report though didn't stop the California wine industry from continuing to complain, fearing Sake would hurt their market in Hawaii. Curiously, it doesn’t appear his report addressed the import differences of 1894. 

Despite this report, the Los Angeles Herald (CA), August 18, 1895, stated that a committee would consider the claims of the California wine industry, and the alleged harms from the low Sake duty.  

In the Pacific Commercial Advertiser (HI), October 1, 1895, there was an ad for S. Kimura, a wholesale dealer of Saki and other Japanese products. Advertisements from S. Kimora extended back at least until May 1895, but Sake wasn't specifically mentioned until October. The Sake ads would continue through October 1897. And it was then mentioned in January 1898, that the location of the Kimura wholesale store had to close. 

A Sake shortage! The Hawaiian Star (HI), October 11, 1895, reported that, “Saki is scarce in Honolulu just now. Several saloons have none for sale. It has been selling for thirty cents ‘per lot,’ a dime advance, for some time…Many natives are switching off to beer. Japanese cling to their national brew despite the raise in price.” The reason for the Sake shortage was said to be cholera, which was decreasing Sake production and exports. 

By late 1895 and early 1896, there was a significant number of Japanese living in the Hawaiian islands. The total population of Hawaii was about 100,000, and 35,000 of those people were Japanese. One-third of the total population! There were more Japanese in Hawaii than any other foreigners, and Japanese men even outnumbered the amount of native Hawaiian males. Of the Japanese, most of them still worked on the plantations.  

The San Francisco Chronicle (CA), February 23, 1896, claimed that, “Saki has almost entirely supplanted California wines.” The article also mentioned the amounts of Sake imports from 1892-1895. In 1892, Sake imports constituted 5060 gallons and in 1893, it was 9085 gallons. In 1894, that amount had greatly increased to 84,200 gallons, and for the first eleven months of 1895, the amount was 101,000 gallons. Considering the population of Japanese at that time, it averaged out to less than 3 gallons of Sake per Japanese annually. 

The article also alleged that Sake could stink terribly. "It comes in kegs resembling firkins. A disagreeable odor denotes its presence at a distance. The rays of the sun cause fermentation, and when one of the firkins bursts from that or any other cause it creates a noxious stench for a great distance." I'll note that a firkin is an old term for a small wooden cask, which might roughly hold 10-11 gallons of liquid. 

By March 1896, the largest market in Hawaii for California wine was the Portuguese, who enjoyed their sweet wines. For example, in the previous month, California exported about 10,591 gallons of wine to Hawaii, and the top five wines included Madeira (5,727 gallons), Port (2,014 gallons), Tokay (825 gallons), Angelica (600 cases), and Sherry (434 gallons). It's easy to see that sweet wines constituted the vast majority of exports.

Matters for the California wine industry almost got worse. At this time, California wine and Sake were paying the same duty, 15 cents a gallon, to export to Hawaii. However, the Pacific Rural Press (HI), March 14, 1896, stated that a proposal was put forth to increase the duty on wine to 30 cents a gallon, if it contained less than 14% alcohol, and 50 cents per gallon, if it was over 14% alcohol. As almost all of the exported California wine was sweet, and around 20% alcohol, the duty would have increased for them by more than three times. 

As Sake would not be affected by this proposed duty, it would make it far tougher for California to compete with Sake imports. "To the end of preserving the island trade, which —owing to the presence there of a large Portuguese population—is very large, the California wine men are making every possible effort to induce the Hawaiian Legislature to let the tariff stand as it is.” 

Obviously, California wine makers were upset with this proposed duty change and tried to defeat this measure. Somehow they succeeded in not only defeating the proposed increased duty, but in a move that clearly helped to protect the California wine industry, the situation ended up in a major reversal. Rather than increasing the duty on wine, the duty was raised on Sake instead, and at an even higher amount than had been proposed for wine. 

As an interesting aside, the Salt Lake Herald (UT), April 20, 1896, discussed an intriguing Sake legend, one I'd never heard of before. “Well there is a tradition that if one drinks a great deal of sake one’s hair will become red, for a boy who once fell into a pot of it came out with a sorrel top.” The writer, who had red hair, mentioned that when she walked through the streets in Japan, "... small boys would follow me, pretend to be drunk and pointing to my hair, whisper ‘sake,’ intimating that I was a great drunkard.” 

In June 1896, over the veto of Hawaiian President Sanford Dole, the Hawaiian legislature approved “An Act To Increase The Duty on Liquors, Still Wines, And Other Beverages Made From Materials Other Than Grape Juice.” This raised the duty on still wines made of materials other than grape juice, of less than 14% alcohol, to 60 cents per gallon, and if over 14% alcohol, the duty became $1.00. As the average Sake was about 16% alcohol, then it would be charged the $1.00 duty, twice what the originally proposed duty had been for wine. The Act was set to take effect on July 1, 1897.

The Hawaiian Star, June 16, 1896, alleged that this new duty would likely double the retail price of sake, to 40 cents a bottle. It seems this might be a very low estimate, as if the duty was now about 6 times higher, then the retail price might also increase by a similar amount, so that importers could make a similar profit as before. Some members of the Legislature believed the new duty would also lead to reduced Sake consumption by native Hawaiians. 

Though the new duty was technically applicable to more than just Sake, it was obvious that it was specifically targeted toward Sake, even though the Act did not specifically mention Sake. During discussions on the passage of this act, it was even alleged by some that Sake contained a large amount of poisonous methylic alcohol, so the legislature wanted to raise the duty to protect native Hawaiians. This allegation doesn't seem to have any support or evidence, and also doesn't appear to have been raised ever again. It seems more just a baseless justification to support the imposition of the prohibitive duty on Sake. If it had been a true threat, then Sake would simply have been banned.

In February 1897, California wine imports into Hawaii totaled about 10,591 gallons while imported Sake totaled about 18,672. Of the California wines, the breakdown in wine types included 5,727 gallons of Madeira, 2,014 of Port, 825 of Tokay, 600 of Angelica, 110 of Muscatel, 434 of Sherry, 396 of Claret, 270 of Zinfandel, 49 of Cabernet Sauvignon, 118 of Riesling, 37 of Sauterne, and 11 of Chambertin. Sweet California wines remained dominant.

At this time, most Japanese laborers were only earning $12-$15 per month, so in July 1897 when the new duty went into effect, Sake became an expensive luxury that they could only purchase infrequently. The price of Sake at least doubled, and probably increased as much as 6 times, so the cost may have ranged from 40 cents to $1.20 a bottle. The Sacramento Daily Union, July 31, 1897, reported that the Japanese Government had accepted an offer from Hawaii to arbitrate the dispute concerning the new duty on Sake. However, it doesn't appear that the arbitration led to any changes.  

The Evening Bulletin, December 14, 1897, reported that since the new Sake duty went into effect, Sake consumption in Hawaii had declined. However, it was alleged that Sake consumption might have decreased even without the new duty because of Japan's involvement in a war with China, as well as the change from the silver to a gold basis. During October 1897, about 10,358 gallons of wine and 20 cases, a total value of $4715, had been shipped to Hawaii.   

During the first three months of 1898, when the Act had already been in place for about six months, only 2983 gallons of Sake were imported into Hawaii. This meant that annual Sake imports had decreased to what was once imported in a single month. The Evening Bulletin (HI), April 06, 1898, noted that there had been a decrease in Sake consumption of 65,000 gallons over the last year. 

The article also mentioned that a gallon of Sake cost 45 cents in Japan. When you added freight & commission, of 11 ¼ cents, and a duty of 60 cents, the gallon in Hawaii cost $1.16 ¼. However, the duty would likely have been $1.00, because of the higher alcohol content of the Sake, the total cost would actually have been $1.56 ¼. As a gallon of California wine could be purchased in Hawaii for 65 cents, Sake was over twice as expensive.   

California thus expected that with the significant decrease in Sake consumption, there would be a substantial rise in California wine sales. However, that didn't occur! Many Sake lovers, who couldn't afford to buy Sake, were generally not seeking out California wine as a replacement. As Sake was so pricey, but still greatly desired, it led some Japanese in Hawaii to choose to illegally brew their own Sake, risking arrest and potential fines. 

One enterprising Sake brewery in Japan also found a loophole in the new Act. The Kiku-Masamume Brewery realized that the Act’s oppressive duty only applied to Sake that was shipped into Hawaii from Japan. If they first shipped their Sake from Japan to California and then later shipped it to Hawaii, they didn't have to pay the increased duty. It's unclear whether other Sake breweries realized and took advantage of this loophole. It's also unclear whether the U.S. tried to close this loophole or not.

On July 7, 1898, the U.S. signed the Newlands Resolution, annexing the Kingdom Hawaii, and on August 12, 1898, Hawaii became an American Territory. It wouldn't become a state until 1959.

The Evening Star (WA), September 17, 1898, ran an article titled, Saki And Its Terrors. It began, noting, “Saki is not indigenous to Hawaii. It got there from Japan. But it is there to stay. It is now an Hawaiian institution, is saki.” The article quoted a naval officer, who said, “A word about saki. It is the fermented juice of rice. It is a brownish white in color. It is very deceptive. It goes down like the most innocuous kind of Rhine wine, which it resembles in taste. But you are not supposed to gulp it down as you gulp down Rhine wine; otherwise—but laymen do not know this; only Japanese and Kanakas and court interpreters and things—“   

Contrasting views of the alcoholic strength of Sake. The Sausalito News (CA), February 18, 1899, with a racist tone, stated, “The little Japs are about as free from the vice of drunkenness as any people in the world. In fact, it is the rarest thing in the world to see an inebriated subject of the mikado. The native drink, "saki," is used about as tea in this country, and it is but little more intoxicating.” So, the writer saw Sake as only mildly alcoholic. 

However, the Amador Ledger (CA), August 3, 1900, in an article on Japanese dinners, noted, “During the dinner each guest rises and proposes the health of the host and one other guest until the whole party is disposed of. This custom is rather hard on the guests, for sake is fiery stuff and goes to one's head more quickly than our own brandy. To make matters worse, after one has drunk the health of all the company it is customary to drink the health of the waitresses, who bow their foreheads to the floor in acknowledgment.” A much different view on the strength of Sake, and this conflict would continue to exist in various newspapers for some time to come.

By 1900, there were about 61,000 (47,000 men and 14,000 women) Japanese living in Hawaii, constituting almost 40% of the total population. The population of native Hawaiians was only about 30,000 and the population of Chinese was about 26,000. In comparison, back in 1884, sixteen years earlier, there had only been about 116 Japanese living in Hawaii.

The Dunsmuir News (CA), March 23, 1901, briefly mentioned, “Excepting grape wine, the oldest alcoholic beverage known to man is sake, a rice wine. It has been used by Japanese for over 2000 years.” The article failed to mention that the Chinese were producing Sake for thousands of years before the Japanese.

Hawaiian importers of Sake eventually decided to take legal action concerning the high duty on Sake. The Honolulu Advertiser (HI), November 14, 1902, reported that, “Honolulu importers of sake from Japan will endeavor to recover from the United States government about $100,000 paid in duty to Collector Stackable, which they claim is in excess of the amount they should have been assessed.” E.R. Stackable, the Collector Generalship of Customs, had been assessing a duty on Sake of 50 cents per gallon, considering it to be a distilled alcohol. The importers though claimed that Sake was a fermented alcohol, and thus the proper duty should have been 20 cents a gallon. The importers had paid the higher duty, but under protest, and had made almost 100 appeals on the high duty. 

One of those appeals, by Hackfeld & Co., was being brought forward as a test case, and the decision would affect all of the other appeals. This test case was brought before the General Board of Appraisers in New York City, and was set for be heard on December 18. If the importers prevailed, they would be awarded about $100,000 in excess duty that had been paid. Making the issue more confusing, was that the customs department differed from the IRS on the nature of Sake, as the IRS felt it was fermented, and not distilled. With an excess duty of $100,000, that would mean the importers had imported over 330,000 gallons of Sake into Hawaii. 

The Honolulu Advertiser (HI), May 15, 1903, provided information on the decision of the General Board of Appraisers.  In essence, the board sided with Stackable, concluding that 50 cents per gallon was the proper duty. The board held that Sake should be assessed under paragraph 296 of the Tariff Act of 1897, which states, “296. Still wine, including ginger wine or ginger cordial and vermouth, in casks or packages other than bottles or jugs, if containing fourteen per centum or less of absolute alcohol, forty cents per gallon; if containing more than fourteen per centum of absolute alcohol, fifty cents per gallon.” So, even though it was seen as similar to wine, as the alcohol content of Sake was usually around 16%, it was assessed at 50 cents per gallon. 

The importers though had wanted Sake to be assessed under paragraphs 297 or 298. First, “297. Ale, porter, and beer, in bottles or jugs, forty cents per gallon, but no separate or additional duty shall be assessed on the bottles or jugs; otherwise than in bottles or jugs, twenty cents per gallon.” Second, “298. Malt extract, fluid, in casks, twenty cents per gallon; in bottles of jugs, forty cents per gallon; solid or condenses, forty per centum ad valorem.”

The board considered the nature of Sake, noting it “is not specifically provided for in the tariff act.” Although it's produced similar to beer, it’s similar to wine in percentage of alcohol, extract, ash, and in its use. Thus, the board felt it should be classed as either “a non-enumerated manufactured article, under said section 6, or as still wine by similitude, under said paragraph 296 and section 7.” The board concluded Sake should be treated as wine, and not beer, and also that it wasn't a malt extract under paragraph 298. 

Hackfeld & Co. appealed the decision of the General Board of Appraisers. The Hawaii Herald (HI), July 23, 1903, mentioned that the appeal would soon come to a decision, but now the excess duty total was closer to about $500,000.  

The Hawaiian Star (HI), February 6, 1904, reported that the Customs department was treating Sake as a still wine, while Internal Revenue Collector Chamberlain had received a ruling from Washington instructing him to tax Sake as a beer. 

A decision on the appeal! The Hawaiian Star (HI), May 26, 1904, reported that the Sake importers won their appeal in the Federal District Court for the southern district of New York. They could now be awarded $400K-$500K on the excess duty that had paid. This decision only affected Sake that had been imported into Hawaii since March 1902. The Circuit Court concluded that Sake was a non-enumerated item, and thus dutiable at 20% ad valorem, or about 9 cents a gallon. The government was provided 30 days to file for an appeal. It was also noted that Sake importers, who brought it to San Francisco, have also filled their own appeal on the issue of the high duty, but this Circuit Court decision didn't affect their cases. 

The government appealed the decision, which was now pending to be heard in October.  The decision from the U.S. Circuit Court of Appeals didn't come down until March 1905, and the Court sided with the importers. According to the San Francisco Call (CA), March 17, 1905, "Sake was declared to be neither a wine nor a beer, but a manufactured article, unspecified in the tariff schedules, and subject to a duty of 20% ad valorem.” Thus, the importers were due a refund of $400K-$500K. 

In November 1904, the Sake importer, T. Komada & Co. in San Francisco, filed a similar protest to the duty on Sake. Again, there were numerous appeals of the high duty filed in California, and the total amount at stake totaled "millions of dollars." The importers wanted Sake classed as unenumerated, and thus assessed a duty of about 10 cents per gallon. 

The Evening Mail (CA), May 25, 1905, reported that the Sake importers won in a decision by the Board of General Appraisers, noting that Sake was unenumerated, but the government appealed. Then, the San Francisco Call (CA), June 2, 1905, noted that a hearing would begin next Monday in the office of U.S. Appraiser John T. Dare. The importers would be represented by Thomas Fitch. The US Circuit Court of Appeals cut down the duty to 10 cents, holding that sake was neither a wine nor a beer. On a recent importation of saki, a 50 cents duty was imposed and it formed the basis of the present case. 

The Los Angeles Herald (CA), November 2, 1905, reported that Attorney Fitch, who had previously represented the Japanese Sake importers in the Hawaiian cases, had received a fee for his services of $100,000. “It is one of the largest fees ever secured by an attorney in a single case of that character.” 

The San Francisco Call (CA), May 25, 1906, reported that the San Francisco Sake duty cases were set for July 10 at the U.S. Circuit Court. Over 400 cases had been brought by the Sake importers concerning the high duty. The San Francisco Call (CA), July 11, 1906, the mentioned, “Should the Government fall in its contention in the sake case now on trial before Judge Morrow in the United States Circuit Court, the customs department will be obliged to rebate to the importers $1,000,000 excess duties paid under protest to date for the Japanese beverage."

A decision is announced. The Los Angeles Herald (CA), July 12, 1906, reported that, “United States Circuit Judge Morrow has decided in effect that sake may be imported into the United States upon the payment of only ten cents per gallon duty. Judge Morrow held that sake was not in the similitude of either wine or beer, but was dutiable as an unenumerated article upon which the duty is 20 per cent ad valorem. The value of sake was agreed to be 50 cents per gallon and the tax upon this valuation will be 10 cents. Importers will be entitled to a rebate of more than $1,000,000. This decision supports that of the board of general appraisers and the United States circuit court of New York In another similar case. United States District Attorney Devlin announced that he would take an appeal to the United States circuit court of appeals.”

In January 1908, the Sake duty matter went before the U.S. Circuit Court of Appeals, and the San Francisco Call (CA), May 19, 1908, reported on the decision. “A suit involving the payment of more than $500,000 was decided yesterday by the United States circuit court of appeals in favor of the United States government." The article continued, “The court said that the evidence showed that there was a great similarity between sake and still wine, alcohol being, the principal ingredient in both sake and still wine. The court was of the opinion that the evidence showed that both sake and still wine were drunk for exhilaration and that both were capable of producing; intoxication, but that intoxication from sake passes off more quickly than that produced by still wine. The decision of the lower court was reversed, the matter having been brought into the appellate court by the government.” 

An appeal was made to the Supreme Court. The San Francisco Call (CA), December 1, 1908, noted “The supreme court of the United States today granted the petition of Komada & Co., Japanese merchants of San Francisco, for a writ of certiorari in the case of that firm involving a rate of duty to be paid on the Japanese liquor known as "sake." The effect of the court's action will be to bring the entire record in the case to the supreme court for review. The case was decided by the United states circuit court of appeals for the ninth circuit adversely to the importers.” The matter wouldn't go before the Supreme Court until November 1909. 

However, effective as of December 1909, the Payne Tariff Bill became law, and one of its changes was that it specifically declared that Sake was akin to still wine, and thus subject to the same duty, meaning that Sake would generally be charged a duty of 50 cents a gallon. In January 1910, the Supreme Court announced that it affirmed the decision of the U.S. Circuit Court of Appeals, that “the Japanese beverage sake is properly dutiable under § 297 of the Tariff Act of July 24, 1897, c. ll, 30 Stat. 151, 205, as similar to still wine, and not as similar to beer.”

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Around this time, there was also another important legal case involving Sake, or actually the absence of Sake. The Hawaiian Star (HI), May 27, 1904, detailed a matter over the duty on "empty" Sake tubs. When exporting Sake to Hawaii, sometimes the tubs transporting them broke, spilling all of the Sake, so that those tubs arrived empty. The Treasury department ordered that customs needed to assess a full duty even on those empty tubs, just as if they were full. The Treasury decision was based on a statutory provision that broken packages of wines, liquors and cordials must be assessed in full as if complete. In the case at hand, this amounted to a Sake duty of about $5,000. 

The importer filed an appeal to the Board of General Appraisers in New York, and they decided on behalf of the importer. Although the government appealed this decision, in July 1905, the Treasury Department decided to accept the ruling.

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A History of Sake Brewing in the U.S.  (Part 1)

A History of Sake Brewing in the U.S.  (Part 3)

A History of Sake Brewing in the U.S.  (Part 4)