The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-12-05

l6, "a, or 80 cents per pound, a uniform -
rate of 80 cents would have increased the
revenue by the sum of $4,SS2, S21.61,
while uniform rate Of "a or 16 cents
wouldhave diminished those receipts in the
sums respectively of S2,72S, 0lS.71 and
$l0, 1885, $50. 03. | am aware that it is con-
tended by those who advocate reduction
Of the tax to a uniform rate of 16 cents per
pound that tho increased consumption
which would result from such reduction,
and the greater number of pounds which
would reach taxation, would nearly, ifnot
quite, compensate for the reduction in the
rate. | am unable, however, to see any
well-grounded reason for such conclusion
first, because such reduction would
have little, if any, tendency to increase the
consumption of smoking tobacco, as nearly
all smoking tobacco now pays but sixteen
cents tax secondly, such reduction alone
would not tend to diminish the quantity of
raw or leaf tobacco consumed, for most of
the leaf tobacco sold directly to consul
mers is used for smoking purposes, and
the motive to smoke untaxed leaf would
not be removed or lessened by diminishing
the tax on chewing tobacco; thirdly, be-
cause.whatever increase in consumption
there might be from such reduction in the
rate must necessarily be of chewing tobac-
co, of plug, twist, fine-cut, &C., and of
snuff, and of these the consumption would
have to be doubled, making it 12S 100000
pounds, where it is now only 64,000,000
pounds, in order to obtain the same amount
of revenue as was collected the last fiscal
year. Such an increase in the consump-
ton of chewing tobacco is not to be expect
ed.
My own opinion is, that with the tax at
"a cents, taking into account the natural
increase of the revenue as shown between
the collections of succeeding years, and
| with the advantage of some legislation
hereinafter recommended, we shall be able
| to keep the collections on tobacco up to
those under the present rates.
PEDDLERs OF TOBACCO.
l am satisfied, from the evidence which
has accumulated at this Office, that much
of the fraud above referred to is effected
through the instrumentality Of peddlers.
/ would, therefore, recommend that
every person who sells or offers to sell man.
ufactured tobacco, snuff, or cigars from
wagons, in the manner of peddlers travel
ing from place to place, be required to pay
a special tax of fifteen, twenty-five, or fifty
dollars, according as they travel with one,
two, or more horses or mules, and to COM
ply with such regulations as may be pre-
scribed by the Commissioner of Internal
Revenue.
SALE OF LEAF TOBACCO TO CONSUMERS.
For the last three years this Office has
been in possession of information that q
large and increasing amount of raw or leaf
tobacco, in portions of the country, was
being sold at retail directly to consumers
without the payment of tax. Against this
traffic, grown to such large proportions, so
injurious to their business as manufacture
ers, and prejudcial to the interest of the
government revenue, manufacturers of to-
bacco ask to be protected.
To this end, | would recommend that
section so Of the act of July 20, 1868, be
! SO amended as to impose special tax OF
five hundred dollars on every person who
shall make a business of selling raw or
; leaf tobacco to persons other than those
who have paid special tax as leaf dealers,
or as manufacturers of tobacco, snuff, or
cigars, or who shall sell leaf tobacco in
quantities less than twenty-five pounds, or
l who shall sell such tobacco directly to con-
: sumers, or for consumption without its be-
r ing manufactured. And if this is not
$ deemed sufficient, would further recon-
mend such tax on the sales Of such deal
ers in excess of 81, 900 annually as would
! be equivalent to the tax on the same
|. amount and value of manufactured to-
r bacco.
EXPORT BONDED WAREHOUSES.
{ In the absence of any provision of law
!. providing for drawback on manufactured
| tobacco and snuff when exported, the law
: has provided for system of export bonded
e warehouses to be established at any port
+ Of entry in the United States for the stor-
d age of manufactured tobacco and snuff in.
i tended for expectation.
# Under this provision Of law there are
g now in operation sixteen export bonded
). warehouses, two having been established
d during the last fiscal year, viz: one at the
IS port of Mobile, Alabama, and one at Port.
i land, Oregon, while one Of those previously
y established at Philadelphia has been dis
continued.
r The quantity Of tobacco, &c., stored il
Is The several exported bonded warehouses
during the fiscal year ended June 80, 1871
was 26 ,379, 1894 pounds.
The quantity withdrawn for expectation
during the fiscal year was 10,62l ,08s
4s pounds.
40 The quantity withdrawn for consump
% ton on payment OF the tax, from the seve
" raj bonded warehouses for the fiscal yea
70 was ii ,499, $3.50 pounds. a.
These figures show that less than one
half of the tobacco, &C., removed in bono
from the manufactures is actually export
ed. From the eight bonded warehouse
40 established at the several ports of Phila
% delphia, Baltimore, New Orleans, Sa
70 Francisco, and Portland, Oregon, in whicl
were stored during the fiscal year ende
June 80, 1871, 9,437, 257 pounds of man
ne ufactured tobacco, only 437, 495 pound
re during this period were withdrawn for OF
j. portation, while 8,4S0,656 pounds wer
It's withdrawn for consumption on payment {
1g the tax.
Nearly nine-tenths of all the tobacco ex
o. ported from the country is shipped throug
C. the bonded warehouses at New York an
Richmond, Va. and of this a large porto
is never stored IN the bonded warehouses
,eo The shipments are made directly from tn
~ factories, the goods being carried by til
1876 warehouses, and only constructively or
'S2 tered therein, though the owners thereo
,77 are charged with months storage.
= The practical operation of this system {
'os bonded warehouses hitherto has been
to = co,,- ,,J:xI,a1p aud G,.x,c y,ov