The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-03
TAXING THE WEED.
Tobacco Men Who Believe in
a High Tax.
The Movement to Resist a Reduc-
ton of the Rate.
A MERCANTILE PARADOX

cents sixteen twelve cents per pound had been
spread upon tho record OF the House OF Rep
resentatvcs there almost paralysis Of the to-
bacco trade caused by tho sudden conservatism OF
buyers OF manufactured tobacco In the days OF tho
war there speculations that Involved good
deal OF money favored parties when there was talk
changing rates of tax tobacco but now it seems
that the mere talk of change has thrown thousands
OF worKmen out OF employment ana carried distress
TO many u family.
The tax on tobacco fixed in the act Of June 10,
1854 in crude way because OF the inexperiences OF
people a nation collecting taxes upon It's own
products; and when tho oil July 90 1865 fixed II 1t
still mixed affair Up to June d, 1872, the tax
smoking tobacco-al soft tobacco, cut, granuated,
&c-was sixteen cents por pound, and plug tobacco
,hirty-two cents per pound, whether used Tor chew
ing smoking. Tho act OF June O, 1872, liked The
system OF taxing and collecting that all tobacco,
except snulI was provided for as In the follow
Ing provision:--
On all chewing and smoking tobacco, fine cut,
cavendish, plug or twist. cut or graduated oil every
description; on tobacco twisted by hand or reduced
Into a condition to be consumed, or IN any manner
othcr than the ordinary mode OF drying and curing,
prepared Tor sale or consumption, even II prepared
without the use OF any machine or instrument, and
without being pressed or swco tened; and on Ill hne
cut shorts and rciuse scraps clippngs cuttings and
eweepngs of tobacco tax Of twenty cents per pound
This rate was increased, March l. 1875. TO twenty
four cents per pound. II will be noticed that one
kind of tobacco above spoken Of is cut or graduated
That means fine cut chewing and smoking tobacco
OF every kind. The other Is the pressed and sweet
ened tobacco known as plug. The distinctions IN to-
bacco are:--
First. leaf untampered, which pays no tax; second
tobacco cut and avored; third TOBACCO pressed and
sweetened.
The cut and favored ncludcs all kinds OF smoking
ana fine chewing. The pressed and sweetcned
all of
every dollar OF tax that iscoected tobacco, except
upon SNUFF, and licenses The producer pays no tax.
He is obliged to sell It to licensed manufacturer and
the latter pays all the that ever collected from
before he oft from his factory. 1t
may be well in this connection to show the desperate
attempts that made to undermine those laws
No less than thirty bills, in the House,
before the Committee OF Ways and Means to per-
mt producer cell leaf tobacco to the
rhe committee will report bill to do so
to the extent of 500 worth year. Twice has such
bill been reported from the Ways and Means Com.
mit,ee, passed the House by an almost uuani-
nous VOTE and twice has 1t been beaten in
the Senate Tho tariff bill of 1872 almost
beaten by the persistency OF the House sending it
back conference committees to that provision.
The argument ana is plausible planter can
partly pay of his hands in tobacco Tor use, trade it
the store Tor provisons farming Implements drugs
whskcy and clothing. Perhaps he Is q small fellow,
raising less than hogsbead, he trade sell
IL at the country The law nov says that he
only dispose OF IT TO licensed dealer or mauuiac-
turer, and the licensed man goes around to buy IT or
the planter carts II to town to him. The producer
asks, Why was that proposition always defeated, us
1t likely 1t always will ber Because. It Is argued, II
would Kill the system OF deriving revenue from tobacco.
farmer cot leaf tobacco with his corn cutter or
Kniie MI hogs bladder full and put vanilla bean
In II Tor lavoring and II he uses the best leaf he Will
have the best smoking tobacco He twist the best
leaf and dumpen and sweeten 1T aid have the best
chewing The TACT Is. that the better the leaf tho
less 1avoring and sweetening IS needed. Stopping
there, and realizing that the manufac-
tured tobacco, which alone pays the TAX ior
the producers Leaf pays nono), Is simply
cut anu favored, pressed ana swcetened, IL can
readily be seen iha the government steps IN with It's
Claim for protection OF the revenue For that reason
the UnIted States government, through It's Internal
Revenue Bureau, and joan sherman, then Senator
aud chairman OF tho finance committee, and now
Secretary OF The Treasury always intervcned To pre-
vent its passage be. tue Finance Committees
portals The question always asked 10y the Treasury
department, "When would planter get through sell
Ing 500 worth OF leaf tobacco TO consumer ~ has
never been answered except by shake OF the head
shrug oil the shoulders anu quotation OF the general
belief that they are all honest men, who could not DO
influenced by such Il prem um upon fraud.
On the l7tn December tho present agitation OF
the change OF the OF took shape IN Gin
ripnat IN a meeting OF nuc cut ana smoking tobacco
niau uiacturers. Their resolutions, the House
OF Representatives, covered Two columns OF the Cin
cinnat papers next morning. They argued IN them
Frst-Tnat the present Tux OF twentylour cents per
pound is unjust, unless Congress has tho right to
Second-Ihat is unequal, because 1t lays cxtraor.
cinary burdens upon the people OF one portion aud
one section OF the country Tor the relief and oenet Of
inc remainder.
Third-Tnat 1, is oppressive, because 1t works dis
nster 10 warehcusenen merchants and Dealers and
finally upon the iGriDer.
When The first discussion OF the question took place.
in Octorer last. the production OF manufactured
bacco began 10 fall Off, but this Cincinnati convention
OF manufacturers OF soft tobacco capped the climax.
Purchasers grew umd, IN the same way when the
tea coffee reduction started; corner groccrs
SIKH avenue WHO always kept ten chests OF tea
time In ther cellars Kept buying only halt "a
ut timc. Since This question mas been agilalcd
thousands OF workmcn have been thrown out OF en-
pioyent and number or factories have been closed.
There Is not plug factory IN the United states doing
much work dd weeks ago, except u
lew winch are filling old contracts.
In an interview with Mr. Kimball, the venerable
Chief OF the tobacco division in the Treasury Depart
mcnt the subject was tnus clucidated:-
"why does Virginia want the tax or tobacco
duccds"
"yrgnia docs rot. Nine-enths of her manufac-
turcrs opposed TO IT,
''lcu must be mistaken The papers full OF
statements 10 the con,raryv
III you read them can show you number
OF letters from there that Will convince you that
point. l have pnid 10 attention to what tie papers
pave SAID beyond the reading 1t is not my business
TO answer newspaper assertions. / am here TO pro-
tcct the revenue ana do NJ all times for the govern
nent what Is best. | do my duty, ana can only
err in judgment IN us performance. But
Tobacco manufacturers OF the United States
would be gad 10 have tho tax all OF,
No consumer complains OF The TAX. 1t Is only
average oil iow GEMS year to the No the
trouDie Is just here few manufacturers oil promi-
hence went INTO this thing, beievng that they could
do something TINT would lessen the necessary
ing capital Of factory You know manufacturer
must pay Tor his stamps before sell his tobacco,
anu IL takes good deal OF capital to DO nanuiac-
turer. But rs soon as thcir Leiqhbors that tho
moment the tax went down small aud mushroom iac-
torres would start small capital and thus cndangor
the trade by now competition they began 10 expostu
late with tho usauaiactu rcrs VINO in The move
mcnt and some OF those quoted as iavOrng
deadly opposed TO H. Bcsidcs, ~ has given severe
blow 10 the business for the present"
s'Will the tax bo reduccdY"
'Why, no, vi course not. In the first place. VIC want
NIL tho revenue from this easy anu satisfied source
that can get. IL "a luxury ana by our stamp
system the government gets IT'S money without frc-
ton trouble rom comparatively lew people, who
pay the tax and collect II themselves from the
consumer. We collect at least nnotyDve por cent of
all the US from tns source, ana tnat think,
Is dong we'll Besides, the mar ufncturcrs, rs body,
ro ouposed TO any change Of kind IN The lObaccO