New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-20

would affect the revenue il is impossible at present
to compute In the opinion of members of the COM
mittee who have given much thought to the sub
ect the chief difficulty Is to devise system which
would prevent fraud The tobacco manufacturers
have for time been arguing that the considera-
bic quantity of alcohol used by them In their busi-
ness should be relieved from the tax. One OF the
arguments they use Is that very large proportion
of the goods they manufacture is exported,
and that while exporters of alcohol
receive drawback equal to the tax on
the amount exported. the tobacco manufacturer
receives no such drawback on the alcohol used by
him in the manufacture of tobacco which he ex-
ports. Another phase of the question Is presented
in letter recently addressed to the committee by
New-York company. which Is an extensive manu-
facturer of fuses. blasting caps etc. This company
uses from fifteen to twenty barrels OF acohol a
MONTH and IL the tax taken of would use fifty
barrels month. To avoid the payment OF the tax
now the company exports alcohol TO st. Thomas, IN
the West Indies and employs labor there to manu-
facture the crude material for blasting caps. AL
though there is a duty of 40 per cent on blasting
caps this company saysit could not pay the tax on
the alcohol used and then compete with
the German and other foreign manu-
facturers of those articles The company is therefore
compelled to employ n large proportion OF foreign
labor in its business and at the same time is re-
stricted to the amount of its manufacture by the
high tax imposed upon the alcohol necessary III me
business At recent meeting of the commlttce
Judge Kelley spoke Of instances in which plumber
and carpet manufacturer Ill Philadelphia ca'ied
his attention TO tho fact that the tax on alcohol
bore heavily on thenl rs they were compelled 10 use
considerable quantities of IL in their business
Another demand that tho Ways and Means Com
mlttee will soon be called upon TO face Is that or
Congressman who represent large tobacco
growing districts for amendment which
will allow producers of a few hundred
Ic Af IN coll
to others than licensed dealers Propositions of this
sort have been urged for several years. and only two
weeks ago an attempt was made to pass one OF them
rules 1t failed only because twotmrds vote
WAS required, Tor it received majority oi nearly
thirty votes This is regarded by some members of
the Ways and Means Committee as equivalent TO an
instruction by the House 10 the Committee TO bring
III bill on this subject The trouble is to frame a
measure which will not leave open the door TO fraud
The Commissioner Of Internal Revenue is opposed
to it, because he believes its effect would he TO d.
fitting the producers in whose interest 1t is
% ths meSers %sSfS Of the Sag Wags and Means
Committee he said " 1t would be precisely like al
lowing all the small disillers throughout the co9n
try who use more than ten bushels of grain day
to sell their whskey without paying the tax; III
you did that of course their product would be
brought directly In competition with the taX-pald
article 1t would not be quite so good as yonr Ken
tucky whiskey, and the raw tobacco is not quite so
good for consumption as the manufactured article,
but II is good tobacco, and people say that some of
this mOOnshine whskey Is pretty good article,
measure of the kind, declaring that it would not
only he ruinous TO their interests but would open
the door to evasonS and violations OF
the Internal Revenue laws which would
which would not benefit the tobacco growers in
whose behalf the demand is prOfessedly made.