Financed by Schultz and built by rotating teams of local workers during the last gasps of Prohibition in the spring of 1932, this massive underground distilling operation produced thousands of gallons of moonshine against the idyllic backdrop of rural Pine Plains. Here, a sprawling network of interconnected tunnels, bunkers and false chimneys ensured, for short while at least, that detection by the authorities was avoided. The “hooch” was produced in an elaborate distillery cleverly secluded in an old cow barn, and constructed of steel reinforced concrete, valves, and pipes scattered throughout the property. Spring houses supplied water from underground aquifers, and a swimming pool served as a cooling reservoir. Tunnels spread throughout the farm, serving as secret passageways between the structures for its workers and as a means of speedy exit in case of trouble. An open secret to his own family, co-founder Alex Adams’s grandfather, Charles, worked the farm at the time as a young “potato harvester.”
Despite their best efforts, the production of moonshine in a sleepy country town did not escape detection. After numerous previous failed attempts, just after dusk on Monday, October 10, 1932, Federal agents raided the site. Among the items found were two 2,000 gallon stills in operation, two high pressure boilers, over 15,000 gallons of mash, 10,000 pounds of sugar, two Ford trucks, one Reo truck, and a Lincoln sedan. Two workers were arrested, and two days later, twelve federal agents returned to destroy all of the equipment seized.