The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-12-18
vaSfs snGt0n.

r,r ro,nr7rrrE. A VIRGINIA PHYSICIAN TO
srrvv rpoy 1.-THE NEXT GEMS US--THE
EIAIxE INVESTIGATION, &c.
from Our Regular Correspondent
WASHINGTON. December 17.-The Senate
Finance Committee to-day took up the to-
bacco question, and their room was crowd
ed with persons interested in the SUBJECT.
Among the tohacco-men in Attendance L
noticed Ncssrs. Sraulding, Illinois; Leg
cett, Missouri; Robinson, Kentucky; Helm,
McAlpIne, Allen, and Mr.. Lorillard's part
ncy. New York; Garrett, Pennsylvania;
Gail d AN and Marburg, Maryland, and w.
P. Burwe!l, Virginia; and it was estimated
that sos, 000. 900 OF capital was represented
bv those present. Senator Withers and
Messrs. Cabell and Tucker were also in at
tendance and took lively interest in the
proceedings.
DE-. SPENCE ADDRESSES THE COMMITTEE.
DR.. Spencc. OF Cincinnati, the we'll
known manufacturer, first addressed the
committee. and his speech was clear, able,
and convincing. He held up 10 the COIN
mttee common brand Of smoking tobac-
CO, OF which 100000 pounds are now an
nually consumed, and stated that While the
Government receives twcnty-four cents 4
mound on il, the tobacco only brings TWEEN
tv-nine cents. When the tax was twenty
cents 10000. 900 pounds OF this were con-
suncd by the poorer people OF The land.
He showed how all over the country be-
cause OF the high tax patches OF tobacco are
grown and consumed which pay no tax.
II the tax we're reduced to 1Gc. the induce
mcnt 70 use this would not be rs strong as
it is now. When the tax waS zoe. the COM
mon smokiag-tob acco sold ut the same price
it now does and both the planter and the
manufacturer were benefited. Unless the
tax is reduced the farmers OF the North,
West. and South, will combine and demand
the frcc-eaf bill. This passed, as it Will be,
and then farewell to revenue from tobacco.
1t would be vain, he said, to reduce the tax
after it had gone into operation, because the
damage once done could never be remedled.
Ii the tax is reduced now, DR.. Spence be-
iieycd there would be no more aSita-
ton for ten years, and in making the
demand he represented the bulk OF
the manufacturers OF the entire country.
Germany now has 100000 small farmers
growing tobacco, and she taxes it four cents
per pound. She cannot increase the tax,
though she desires to do so. because she pro-
duces tobacco. England prohibits its cul-
ture, and hence can have a high tax. So
with France and Italy. The United States
is the largest tobacco-producing country in
the world, and its Legislators ought not to
tax it so as to ruin both planters and manu-
facturers. He told the committee what was
their plain duty, and warned them OF the
dangers that would follow il the tax was
not reduced. Mr.. Ferry and other men,
bers OF the committee frequently asked him
questions, and his replies were all highly
Satisfactory.
COLONEL ". p. BURwELL'S ARGUMENT.
Colonel Burwell said: propose to show
hat the conclusions Of the Commissioner
are unsupported by his own figures. In
1915 the tax on chewing and smoking
tobacco was. according to the Commissioner,
$24,l33.72G; in 1876, S25,G9i.312; in 1877.
$2I,050,012; in 1878, S25,330,065. From
these figures he concludes if the rate is now
reduced from a cents 10 16 cents there will
be corresponding reduction from the re-
ceipts OF the Government. say 81, 100000.
This cannot be so. The receipts S24,-
l33, 726 wei e practically under the lower rate,
20 cents; the first three quarters being I'M
der that rate, and the last under the 81
cents. Yet there was 100000 less in the
last quarter Of that fiscal gear ut % cents
than in either OF the three quarters at 20
cents. The receipts, on the other hand, UNI
der the 81 cents tax for the fiscal year 1878,
were S23,330,OG Ii, therefore, instead Of
reducing S cents we reduce cents per
pound, we have seen it would produce
S24,l33,726.
According 10 the Commissioners view
the loss should be over 100000 instead
of S1,1G6.339. Now, If the reduction be
eight cents instead Of four, the decrease
would he =, 392.GIS instead of 81 ZOO, 900,
rs he has proclaimed to the country.
Mr.. Bayard: Was not this large receipt
in 1915 due to the fact that the manufactu-
rers anticipated an advance, and therefore
threw 4 large quantity upon the market:
Colonel Burwel: By no means. For it
was suddenly sprung upon Congress and
the country on or about the 10th OF Feb
ruary, and the bill was passed on the Sd Of
March. 1915.
Dir. Allison: feel the force Of your ar
gumcnt in reply to the Commissioners
figures and prediction OF lost revenue.
Win You tell Us what, in your opinion, wilt
be the real loss to the Government by the
reduction to sixteen cents ?
Colonel Burwel!: Under a sixteen-cent
tax | think the Government can safely rely
On the consumption Of 145,000,000 pounds,
which will give receipts OF $23, 200, 900;
snuff will yield 100000; cigars, at S5 per
1000, will yield S1l,5O0,O0O; and special
taxes on manufacturers, &C., $4,000, 900,
making S37, ,000-a reduction the first
year OF only $4,000, 900, instead OF the pre-
dicted reduction Of 81 100000.
The second year the revenue would reach
near $4,000, 000-its present figure under
the twenty-four-cent tax.
The third year / believe it would reach
s4l,o0o,0O0.
The Treasury, it will thus be seen, he
said, will not lose, while the planting In
terest will receive an enhancement in price.
Mr.. Ferry, Of Michigan: Would not the
best way to settle this matter be by legisla-
ton to restrict the growth OF leaf-tobacco to
the tobacco States?
Colonial K,,rsYeII Past6ns fhe pracfica