The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-01-31
rs ,s.s,l,.as.so Tax.
wAsurseTos, D. G., January 80, 1879.

WAsursGTos, D. O., January 90, 1873.
70 The Editors Of the Richmond Dispatch
You will ob.ge me by publishing the con-
structiun given below by Commissioner
Douglass to tie late tobacco law, Interference
more especially TO sales Of leaf.
Great misrepresentation has prevailed on
this subject III regard to the retail leaf clause.
Il will be seen that The late tobacco law. in
stead of abridging the rights of planters, great
" enlarges them, having abolished very an
noying tax--thc tax on sales Of leaf tobacco.
Until the planters Of Virginia desire 10 be-
come peddIers of leaf tobacco,--a business
in which they have never cnibarkrd-this
provision can in no way Interfere with them:
but ut the same time il tends to foster their
Interests ir fostering the interest Of the man
ufacturers, whom the planters look ultimate
~ to in making sales o.! their tobacco.
This clause Of the tobacco law affects only
iobbers Fad retai! dealers in districts o
country where tobacco is not raised. And
the parties who are now agitating the repeal
Of this provision arc i'll the interest oil non
tobacro-srowing regions.
So lonyas we are TO have this great Virgil
mia staple the subject Of Federal taHailoh
the present law J.: Is fair and cqWtd0te IN
its provisions us any we can have. Inc
Commissioner e,tinatcs the increased con-
sumption OF manufactured tobacco ahhuahF'
in consequence of The heavy restrictions on
the >alc OF leaf for peddlirg or con>amptivc
uses. as high as l0.OOo,o00 pounds. surely.
Mr., Editor. Il class of men like these man =.
flct,,rcrs. whose product pays annually iutO
the Federal Treasury $3i,pC0H1H. have il
right TO Il corresponding protection from the
C,rorn,unut in his rpSDprI w p r.
fCopy.l
WAsHINGToE. January q. 1878.
~ir.-I have received your letter o; the
2Tth. in which you state tllat ina:lGach a.
GREAT apprehension haS existed and still eX-
isis in ihc minds of many in regard TO the
retail leaf clause Of the tobacco hill which
passed Congress 9Th June. 1872, YOU will be
obliged to me for construction Of this law
hy The Office CT Internal Revenue with sIt-
cia reference to the following points:
l. Can sheriff levy on leaf tobacco ii, the
hands of planters and sell the same in bulk !:
: Docs the law require person to pay Il
sperial tax as dealer il, leaf tobaccO, paying
for same S25, to enable him to bid OF aid
purchase leaf tobacco at such sale, or III Il
sale Of in executor or administrator:
8. Does il require the payment OF such 4
Sjtciul tdS W cIuDit IL iJ.'utEi w i'ui'tt'o| Z!
Joint interest Of another in Il crop OF leaf to-
haccay
4tb. Can manufactured tobacco. after
being properly packed and stamped. be sold
by sheriff OF other purity as general mer-
chandi,c:
5th. Il il or not the construction Of the
Revenue Department that the late tobacco
law enIirges rather tllin restricts the rights
col, n toi, :.
all ether wholesale transactions III the ,ai:cf
9th. Does the retail leaf clause Of the to-
hacco law affect any other Parties except
such as are engaged in peddlins or otherwise
selling leaf tobacco in lieu OF the nlanuloc-
tlucd article for cousumpiive purposes!
To tic several inquiries thus lroraIndcd
Iy You reply in ticir order:
1t. In the opinion NJ This ClIice the law
relating to the sale Of leaf Tobacco OPPOSES
no lar to . sheriff rrli;ig or Gt!cTing Tor .;!e
Icar tul;Hccn, acting under Tie order q! lie
court. Or any lccal Process authorized by
state law, TO any person desiring to pllr-
chase same in bulk.
I'd and 81. Any person may purchase leaf
tobacco in bulk, Or At Il sherih''s sale. or at -
sale ordered by an executor or &dGinl.ti'a-
tor, or PLANTER nay purchase The joint III
cron cf tobacco, without becoming liable hY
such purchase under Inc internal rc.Cr!"
law ~ ply sIcctl tax therefor.
The liability h m!j special laN Il, i irai
dealer does MOI attach - tn" set oI pt!iF'>-
ing, bat 10 the ACT 9l selling. aui the: cH'y
il cIScS wI.elc the So, are 50 ircqr'G: "rd
If such y character ~ to constitute u huri-
re-. S:ieh casual aud Incidental >arS o!
loif tobacco rs referred 10 in your Inquiries
p:e net considered lis constituting h;l'i-
iic..
tth. \ casual or Incidental sale oi manu-
featured tobacco put UP and stamped Il, ic-
Quircd Ivy law MAY be made By >h";iti "
any other person without incuring 50?
liability tc pay s;eciaI tax therefor.
jtb. in the opinion Of Til, Giii9g tbs at
OF ,Eunc 6. 1872, in nowise intcrttrrs win %
restricts the sale oi leaf tobacco IT WtI@ic-
sale and III bulk for all purposes q nj"r!i.
tlCture and trade, but. on TIC Contrary, rc-
licve$ the planters from Ill faSc 81 ~"i2s ~
their !2a' tobacco made Through agents ~
comu.iSsior-hullacs witch lat"r TIE ~
vicus law they were required r. pay.
9Th. The retail leaf ci.ltSc IU:ltis fiTIs"i'
pr planter. or any other rcr>on, to sell I:"li
tobacco directly 10 Il customer criO q tobacco
or cigar manufacturer Th0 has ~: paid Il
special tax rs such. anti otherwise property
qualified. The intent Of the provision. ~ !
understand it, and In" only intent of the IT,
tail claus. WIS 70 require all !Hblcro cen
eImcd in The country, whe;hcr il the rlai!li-
lacturcd fern or ii the IaW and natural or
leaf state. to pay abort tie sane amount OF
TAX. CHdcr that clau.c planter. Iatia@rs,
aud gardeners cannot paddle Gr otherwise
sell directly t0 consumers, and manufacturers.
particularly manufacturers Of cigars, canIiJt
citain leaf tobacco to he manufactured info
cigars in fraud of the internal revenue law.
The manufacturers OF the country. TO whom
the planters look to hccoun" ultimately the
purchasers Of their crcp> mainly, are largely
protected in heir business ~ tic provisions
ofthe law referred 10. and to TIE s:,ino extent
the revenues Of the Government! are IL
creased.
Hoping that l El3ye answered Your IL
quirics with sufficient eXplciIGes-, | AN
yours respectfully,
ISigncd] J. ". DorsLAss. Commissioner.
10 ". L. BurreH, Esq. Washington, j.. 6.
State RRd Federal ssfsiccs-.ia E;x2'n7s.
ms0ry order.