New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-11


largely decreased since June, owing to the strike. but
some influential persons have tried to make 1t appear
that the decrease chiefly due to an increased
use of cigarettes Mr.. SualtOn said the strike,
of course, had great deal to do with the
recent falling off, but that, with the extension
of trade last year, the decrease shown instead OF
increase In the manufacture OF cigars paying tax rs
there should have BEEN not caused by the increased
use Of cigarettes but by fraud upon the which
the had the power 10 stop and should stop
a matter both Of duty and patriotism. The Commits
sionS said ne glad Of the suggestion and desired
reformation upon this point.
Mr. straton said that IT stood TO reason that in
creased Use OF cigarettes would not lower the tax be-
cause four cigarettes would pay about the same tax as
one cigar. and that "a cigarette smoker would smoke
than four cigarettes for every cigar smoked by
cigar smoker that instead Of the of cigarettes re-
ducng the revenue. IL ought to increase 1t by the
simplest rule OF arithmetic. Mr.. sraton admitted
that the use Of cigarettes has greatly increased
but said that the trade In Them spas
modc one and never bothered the cigar manufacturers
because It taxes squirt in while and d out like
fashion in shoes. The smoker always returns 10 the
solid comfort Of his cigar or PIPE, as tue deyotce OF
fashion does "a last To bis comfortable shoe. Mr.
sraOn quoted the summary Of the Commissioners In his
report on tobacco and said 1t only necessary to carry
II ont rigidy, he would suggest and nearly all the
frauds would be stopped The summary referred to.
after showing what had been done. is rs follows:
These results are believed DE largely due TO those
provisions OF law which were intended TO give to The
Government general control over the movements OF
OF leaf tobacco, regulating ITS sale transfer ana
shipment and preventing IT. being sold Tor direct con-
sumption without the payment of any TAX ana IN com
petition with manufactured and paid tobacco AMI
in ny opinion, continuance Of those features OF said
law Il necessary to maintain the present amount OF re-
crlpts from the same source.
Tie fraud" said Mr.. StraVn, begins the tobacco
plantation. II is not committed by the planter, but
through the buyer OF small quantities. OF tobacco inat
business is too loosely conducted. You can 20 al sny
time to the farmer ana ask him how much tobacco ne
has solG and whom be sold it. and De will answer
far as his information goes. He may even give the
names Of smith, Jones and Brown, who claimed 20 De Il
censed dealers I'm leaf tobacco, but who not haye
been But your agents seldom AK for special nforma-
ton farmers. and they did II would be generally M
satisfactory 1t Is the duty Of tie revenue officer.
der tie law. follow tobacco from the leaf to the tax
paid or exported manufactured article and no law limits
the power"
Mr. stratton then poinel out the necessity u requr-
nz the farmer to assure himself that the buyer his
leaf j. duly licensed dealer in or manufacturer 0f to
bacco. said the lots OF leaf purchased Of farmers
and not accounted for the dealers books were nyar
ably sold IN small parcels cigar maker- who took them
home made the leaf into cigars, and earned good liyeli
hood by selling or trading them for The Of
Hc such cigars never paid "a tax. THIS suggestion
argued to conclusion which convinced the Commits
soncr it, force aud be IL studying plan to suppress
such Illicit proceedings. lie believes the present law
give, him ample authority do So and VIII apply
soon a. ne determines the best way Of doing
Mfr straiton then charged boldly that dangerous sy.
TEN ~ rand exists now In New York. whereby %
the strikers are enabled violate the law By defauG
ing the Government Of reyenu, aud thereby Ia keep
the srike lie instanccd Ike this IN exporter
yn0ly De exporter goes to eaeaicr ami
asks ior -ay twenty OF tobacco $50 pounds each
export To Germany. Tne cafdcairr gives the export
IL f.ideeD a. tfuysrpmeut
open. tie warehouse door and lets the out.
stranger comes alons and offers the eNportc. good
profit the twenty eases, and takes thcm aud tn cX
port certificates Tie tobacco g. never oXp1rcd TO Ger
many TO which place. by the way, We export as much
tobacco -, We mako into cgur,j, bat is sold = the
strikers. Tho result j.. that striker will buy five
pounds 81 tobacco for ~, aud make from 1t $50 cigars.
worth $50 10 50 thousand Even n he sells them for
cent apiece, he makes IL 30 for his days labor But
be scl,s them IN bundles To ns grocer or even
trades them for agrlbrcr wiishcy. lie takes them
in "a basket package, very seldom IN box. In TINS
way the strikers have been and are supported. MI
Sraon said this system o fraud could only be stopped
by t,ouiring that an internal revenue officer shall follow
leaf tobacco sold export the ship. 1; would not
give any Inconvenience 10 the exporter, because no
bonds would be required. only that II lac sells the to
5acco aud delivers the export certificates ne must
give such information to the Collector as viii
enable him Ia be- that tobacco is actually
does SIR stdton asserted that the decreased revenue
cigars due solely two first, the lacii
IS WIN which cgar-naker can buy small quantity OF
leaf; secondly the fact tIa tax paid upon CIGARS
made from such leaf
Mr. straiton went on to say that the New-York
facturcrs know Of many cigar-makers who are Gu
strike and are making and selling trading with
out PAYING tax aud buying their leaf from unauth0r
lzcd persons. The Commissioner asked why com
plant had not been made. lie replied that they
had frequently Informed the Revenue officials
hut they have small force that they cannot spare
the men lie believed that good detailed for
nat service IN Ne~-lok cry, could break up an such
illicit cigar making AMI that the cigar manufacturers
who pay the all cigars they make, ana whose IN
erest III tht matter - VA" '!ia Us tnc
would gladly extend Inn oil tAc aid and information
IN their power There should be man on such duty IN
every large CHAR manufacturing cy hnW an Tue GOV
aTImCnt would make very profitable investment on ms
M ~tlor reasons v hy the strike prolonged the
jury Of trade decrease Of the revenue and distress 81 the
SIR Straiton called attention 10 regulation that.
II NOT modified would he thought, ruin the export trade
In cigars lie had recently been TO London ana ARRANGED
with largest London horses for large sale OF Amei
can cigars IN competition with Havana and BRUSH
made goods. lie bad seen enough 10 convince hiin
that Manufacturers. II nor hampered win
too many restrictions could ship immense quantities
Of cigars To Great Britain, aud successfully
and probably compete with their homemade ana III
wanna imported citns. ne had aItnay shipptu it.gc
ricuu manufacturers would do large business ~
u,, linz. The new egllation requires them 20 brand on
the box tie Manufacturers name district, etc. the same
"a II for home consumption This he said De
crfcl somehow the trade would stop there should
zoe nothng on box 10 lnda the place OT 0rIyu Ui
lie c,ar until the trade lrlnly established and Amer
,cau cIgurs were demanded.
The Commissioner said he would hereafter obyiate the
difficulty lie further requested the Commissioner
establish the privilege of putung 200 in box. be
IL makes nice package and is always popular and
the buyer one dollar per thousand the dlc-
ence ia price OF present csars only be-
put up 30 100, 30 aud 800 IN box The Commissioner
SAID be Lad stamps for the SIZE but would try to pro
vide them and authorize the package.
Mr.. SrultOb sad he uld THINK the mere
II stamp by breaking it In opening the lid was desruc-
ton enough protect the revenue because cigar boxes
are often rcle ana the cigars sold without repay
OF tax He thought that hen n box was ompted the
stamp shoid be removed by water or serapng 80 that
IL. IL A,Aifh Iillt.l l.fn rnI