The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1872-03-05
THE TOBACCO CONTROVERSY

The controversy which has been going
on for some time among the different to-
bacco interests Of the country, has not been
very well understood by the general news
paper reader, nor have our journals, out
side Of the immediate tobacco interests,
been at all careful to give the information
the public might desire. AS VIC under
stand the points of difference between the
two great interests, the plug and the cut,
there is no real reason why the two should
| not be harmonized and made to work as
one. There is, however, at present most
unjust discrimination against the plug
interest, which it is hoped will be eff
iectually remedied when the Committee
Of Ways and Means come to make their
report to the House. We may briefly
state the points of difference thus -
The present tax on all chewing tobacco
is thirty-two cents per pound-on all smok-
ing sixteen cents per pound. The plug
manufacturers want the tax made uniform
on all grades. The cutters want uniform
tax of sixteen cents, or else have the tax
remain as it il. The Commissioner of In
ternal Revenue will consent to a uniform
tax OF twenty-four cents, and nothing
less, since to cut it down TO sixteen cents
will take too big slice out of the public
revenue. The plug manufacturers believe
that with uniform rate, which is mani
testify the only just one, more plug will be
smoked, while none the less will be chewed
and tEey are willing to accept tax of
twenty-four cents. although not obecting,
of course, to less tax.
1t is manifest, as the law now stands,
that great injustice is done to the plug and
twist interest, and no wonder that their
complaints are loud against the discrimi-
nations adopted by the government.
When the tax of thirty-two cents was first
laid, it was intended to apply to all chew
ing tobacco, while that class known as the
'rcfuse," or imperfect leaf and stems, was
allowed to be put up at sixteen-cent tax.
But this wide difference Of tax, which at
first seemed but reasonable, soon led to
new methods of manufacture, by which
leaf and stems might be rolled together, and
an inferior grade of tobacco manufactured,
which, with the difference in tax, enabled
the cutters to monopolze almost the entire
market in smoking tobacco, and at the
same time largely encroach upon the chew
ing market. All they had to do, was, to
roll the leaf, cut up stems and all, pay one
half the tax of the plug and twist men, go
into the market with very satisfactory
grade of tobacco, and offer it at prices en-
tirely ruinous to the plug and twist inter-
ests. More than this, that class Of manu-
facturers known as the cutters" had the
law SO amended in their interest as to pre-
vent the plug and twist manufacturers from
putting up anything under their process for
a less tax than thirty-two cents. This very
sharp practice on their part has resulted in
the present fight among tobacco men, and
it is most just and righteous one so far as
the plug and twist manufacturers are con-
cerned, as every reasonable man must see.
What the government should now do.
is either to reduce all grades to a uniform
tax, or reinstate the original law, requiring
tobacco tDitaom the stems to pay fixed
tax, no matter how manufactured, and
tobacco NTH the stems to do the same.
The best thing to be done now, however,
! is to make the tax uniform on all grades,