The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-01-21


Iprices. II you reduce the tax on tobacco
you must increase the tariff or establish an
ineome-tax. both Of which viii be unpopu-
lar, and compel the next Congress again to
increase the tax on tobacco, thereby unset
Ting trade. II you reduce the tax to IL
cents It will require the same force to col
lect it. Instead Of paying, as gou now do,
per cent. for collection, you will pay 8.
THE VIRGINIA TOBACCO sMAHuFAeTuRERs BE-
Fs. HIND THE TINES ~ ts5t
During the war the North was cut of
from Virginia, and had to learn how to
manufacture her tobacco. They went at it
In earnest, and brought to their aid art,
science, and research, and succeeded so
well that after The war, the South found that
trade had changed, and that instead Of liking
Old Virginia tobacco people preferred west
ern tobacco. They tried reduction Of
price, but that would not do, and found
That they must excel and not underselI.
Northern manufacturers have obtained bet
ter prices. Virginians say they canDat
make money. He has known them for
twenty years they are very good rnanuiac-
turers, but poor merchants, and when good
merchants poor man ufacturers. They
haven't learned to adopt northern machin-
cry and northern skill. He told them long
ago if they continued to ship goods to New
York they would be ruined, and many Of
them found his advice true. They now
want scapegoat for their own shortcom-
ings, and demand redu ction of the tax.
He GOES FOR THE WEST.
The opposition to the present tax from
the West comes from ine-cut and smoking
men chiefly. He could buy fine-cut to-day
at thirty.four cents upon which a twenty
four-cent tax has to he paid. II the Lo-
rillard firm had only dealt in common fine.
cut it would have gone into bankruptcy
long ago and not paid ten cents on the dollar.
Mr.. Tucker: Is¬ the present tax the
cause Of this?
Mr.. Soldier: No; there are too many
men in the trade. There is too much COM
petition.
Mr.. Douglass: I thought competition the
life Of trade. He does not want competition
in his business. Opposition to the tax
clearly means monopoly to the large manu-
facturers and death to the small ones.
Dir. IBurchard asked then was not fraud
the cause, and Mr.. Seidler endeayored to
show there could be no great fraud in the
matter?
HE WANTED, AND HE DIDN'T WANT, REBATE.
BE said if Congress gave a reduction it
must give a rebate. There is on hand
always half years supply in hands Of all
parties-60, 100000 pounds. There is also
on hand at least half years supply OF
cigars. 1t follows, therefore, he said, that
those holding tobacco will be "scouped"
out Of S7,2O0,0OO, and the holders OF cigars
out Of $2,500,000. If, however, you give
rebate, what tax will you realize next year !?
The Commissioner says the tax on tobacco
mot including cigars, &C., was S28,000,0Q0.
The reduction would make it $4,000, 1000;
rebate would be S1O,OOO,OOO; cost of collect
ing revenue. 100000; net proceeds to the
Treasury, $9,200,00O. ANSWER: In 1872,
when the tax was reduced twelve cents, and
there was rebate, the revenue next year in
creased S5O0,000.1 II there is rebate, Mr..
Seidler said, Mr.. Kimball, Assistant Com
missioner OF Internal Revenue, says he
would not give fig for one MALT Of the affi-
dayits that would be made.
TIE MORAL TCRPITUDE OF ToBACCo-AEN.
He could endorse Dir. KembaIl, because
the firm of P. Lorrillard & Co. made q
SOLEMN contract with their customers that
when they buy for Sc cents they will not
sell for less than go cents per pound, and
yet every day evidence is obtained that
rany violate their plighted faith, and when
charged with it they swear Justify they have
done no such thing. Now, he was surprised
at the moral turpitude of some Of these
men. for we ought to expect better things
Of large commission merchants. When,
however, we go down, he added, lower,
among. the retail dealers, we would not ex-
pect so much.
Mr.. Tucker: You, then, think rich people
are more honest than poor people. Now, I
come from the South, where people are very
poor.
Mr.. Seider: I beg pardon. / had no re-
ference to your people.
Senator Withers: No; he only wants to
inform the committee what estimates he
places upon the honesty Of the people Of
his own section. ..rr @s..
Mr.. Cabell: Does not your house Of Lo-
rillard & Co. guarantee its customers against
all loss in the event of change in the
lawP s...s.
Mr. Seidler: Yes, we were compelled to
do it to prevent our western trade being
gobbled up by western manufacturers.
We would rather lose $500, 900 than they
should do it. -, .,.ra -
Mr.. Cabell: You say you manufacture
1O,0O0,000, and can undersell smaller deal
ers; wouldn't it suit you just as well to
make the tax seventy cents and twenty-four
cents for the higher the tax the greater
the monopoly.
After Mr.. Lorilard's partner had endea-
vored to answer this home-thrust by saying
iftbey could they wouldn't, Senator With
ers remarked that it was evidently to the in
terest OF his firm to break down smaller
ones.
Here the anti-reductionist closed by in.
viting the committee to dine with him at
Welcker's, which, Of course, they did not