Rum-running - History

History

It was not long after the first taxes on alcoholic beverages that someone began to smuggle them. 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 purposes, such as laws against sales to American Indians in the Old West, Canada West, or local prohibitions like the one on Prince Edward Island between 1901 and 1948.

One of the most famous periods of rum-running began in the United States with the 18th Amendment (ratified January 16, 1919) and the Volstead Act (passed October 28, 1919). Prohibition began on January 16, 1920, when the Eighteenth Amendment went into effect. This period lasted until the Eighteenth Amendment was repealed with ratification of the Twenty-first Amendment, on December 5, 1933.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 decreasing 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 of the U.S. territorial waters and let smaller boats and other captains such as Habana Joe take the risk of bringing it into 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. Any cheap sparkling wine became French champagne or Italian Spumante; unbranded liquor became top-of-the-line name brands. McCoy became famous for never watering his booze, and selling only top brands. Although the phrase appears in print in 1882, this is one of several folk 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 the Seneca placed a shell just off her hull, and Bill McCoy's days as a rum-runner were over.

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