The New York herald., 1868-01-08

:, 3 JANUARY g, l868.-T]
brandiugpas % closely q 70 prevent che counterfeit
markngs from being readily detected
che oossOn q the inspected heads and portions Of
packages once used 70 b used again In the
Tosvtk-HAvi.g large quantity Of smoking tobacco
inspected and afterward removing u and suossunna
chewing tobacco-sharssd with higher tax-in ~
Fyfh-In some districts t 10 customary, in order 70
facilitate busnsss to allow small packages or bundles Q!
from one 70 ten or more pounds each 70 be sod
inspection marks; the simply entering n!o
small book the amounts 70 bs added up occasonsny
by the Inspector. In this manner no iuconsldefaoe
proportion Of "ns cut" sold In rolls Or foi escapes
irtAAn irresponsible person may rent cheap build
purGnss 0a % oy bs
pose OF manufacturing smoking tobacco no may oosain
his leaf from anohsr Interested party, or buy u daily
law he can continue this business for sixty days.
have his properly and faithfully marked ana
snS debtor Ss 70 sss
S25 COO Before the expiration OF the SIXTY DAYS ne
disappears, leaving to tho government his machinery
to, perhaps, value OF $4,000. Tho manufacturer in
question: thus disappearing appears again under
a1Ss's sVa sss
SeUeSNh-Th0 use Of hand cutting nacnines IN Iami-
lies throughout the country.
Under these circumstances II s not surprising that an
inquiry into the state Of the tobacco trade should reveal
the following anomalous Icsalts;- ,,.,.,,.a ..
reported being exensxey sold at from sixteen TO
twenty cents per pound, whom the elements OF ts COST
foliows-Raw material seven to eight cents per
pound cost in manufacturing, one and hall TO two
cents; tax, fifteen cents; making total net cost Of
about twenty iour cents. Fine cut chewing tobacco 10
alss largely at much less s proper net cost
supposing the tax TO have been paid upon 1t.
The result Of such transactions is that legitimate
Rufnrt ctr lima IN
Of Tuinous competition, while the unscrupuous are
rapidly accommodating large fortunss Respectable deal.
tho case and purchase their tobacco without question:
whore 1t Is offered the cheapest.
etter addressed to the Commissioner BY one OF the
leading tobacco manufacturers Of the West says:
fac. sha; fraud. on the IN respect 70 70
Ss
may 6s taken for grsnsd that manufacturers OF
sure evidence moreover. because house reports
large tax that Is strictly aonssafor Portion s o. ne
We also nd through the country new and unknown
in the business who BY their low prices arc taxing the
The Commissioner would also state that the books Of
OF the largest tobacco manufacturers In this coun
try show that tnor aggregate sales Of smoking tobacco
for the whole have not been In Of
average OF sales which, before the imposition Of the
tax effected IN . single week.
The interests Of the require ana ns people
toDacco by what method Of law and procedure the
difficulties which attend the collection Of the taxes i'm
!
to say. In truth the subject has never yet received
from any officer OF the that thorough inves
tigaon and study which its importance demands, and
which have boen given TO other specates or taxation.
very slight invest cation, however would seem to
iabish the fact that in this in nearly every other
department OF tho revenue the main cause OF the pre-
discreditabe condition Of affairs may be referred
back directly the imperfect administration OF the law
growing OUT Of the manner IN which the inspectors are
selected and appointed. Remedy this and tho difficulties
which attend the enforcing Of the law and the
collection OF the taxes WILL IN great degree, DO re-
moved.
In addition TO such reform, the strade'' very gsn.
orally result Of their experience during the past
recommendation that the taxes tobacco OF all kinds
be collected and paid by means Of samps slaboratey
engraved, and representing specific Quantities Tho
method In whicn the stamps shall be used s how
ever to some extsns matter OF disagreement among
the advocates OF the proposea new systom.
BY some it Is proposed that there sua be no restrc
tion upon the method OF packing tobacco, but that
stamps SHALL by requirements OF law, be a xed 10 every
package including foil and roll and that all packages
ton stamp the brand or Inspector The por-
tion Of the trade referred to also rscommendFrst-
That the tax be reduced from forty 10 twenty cents
chewing. and from fifteen TO ten cents per pound
smoking tobacco; and that In such case the prepay
meaI Of stamps DO made compulsory; or that IN case
tue be not reduced The bonds OF all manufacturers
Of chewing and smoking tobacco be largely Increased,
aud the issue Of stamps credit by sns collector
amount Of the bond Other representatives OF the to
bacco trade not less influential aud intelligent than the
former. recommend that the law bs amended 10
require the sale Of all chewing and smoking tobacco to
be made In packages TO which. . stamp u
afixsd; that the maximum weight Of package shall
not exceed pound; that all smaller packages shall
be multiple Of . pound In ounces; that for con-
venience and simplicity IN calculation the taxes be
.pa q
per euncs chewing tobacco In place Of the present
rates Of ID and 40 cents that prepaymsnt Of the taxes
be made In all cases obhgaory and that all packages
Of offered held possession for sale without
tho requisite stamp afixsd and cancelled thereon DO
forfeited.
The taxed production OF tobacco for the fiscal year
1867 45 635, 900 pounda With the adoption Of the
stamp and the requirement OF sale in packages
the Commissioner, from data furnished 70 him by Ihe
trade 10 Of the opinion that taxes . minimum, could
he collected from sixty million posnds oil chewing to.
bacco ana from thirty 70 Iofv million POUNDS OF smok-
present derived from this article.
Furthermore, the trade nil unto In recommending
that the OF hand machines tor cutting tobacco for
family or other purposes be strictly prohbited
made subject to heavy special tax or license that all
brands now in by inspectors DO cancelled and
destroyed and that ones Of uniform and elaborate
design prepared and issued to inspectors By the
Treasury Department at Washington, aud that the re-
OF Tho TO the Commissioner Of Internal Rev.
enue, whom out broken, at the expiration Of
ofilcs, be made obligatory.
penal offence for any sencil cutter or other person,
unloss employed by the department Of the Treasury 70
cut or make any plate for the branding Of tobacco.
In these recommendations and suggestions Of the
trade the Commissioner generally concurs and IL
OF the opinion that the adoption ot the stamp
system coupled with the requirement ~ to the sale Of
chewing and smoking tobacco in packages with prepay
meut Of tax, will be found most to the nsrest OF the
revenue Ths deiails Of the plan which docs not pro-
pose any restriction respects the sale In packages
drawn up by committee Of the trade In The form Of
law. will bs found In an appendix TO this report,
marked ID.
Tns plan OF collecting the tax from cigars
BY means Of a small stamp Of thin paper a.
tached TO the 'cup' or 'llght" end, has
been often proposed, and would seem TO be not I'M
practicabe. IL such . plan could DO adopted and
red out aud the tax nxed at cent each cigar
very large additional revenue might be derived from
art Gle and at very small expense for collection
As tue present consumption OF cigars, domestic and
foreign, IN the UnitsdStatos Is estimated at from
thousand 70 twelve hundred millions per annum tax
OF cent Tor each cigar on this consumption would
Theoretically afford annual revenue Of from ten 10
twelve millions gf dollars. while the receipts IRON this
during the last 1scal year less than three
and two-tnirds millions.
The toal revenue derived during the fiscal year end
June 80 1857 from the internal taxes cigars and
tobacco $40. 705S2T. From this source during the
scai year. with the present method Of collection