The sun. [volume] (New York [N.Y.]) 1833-1916, 1882-12-03
4 SUFFERING TR.fDE.
Why the Tobacco Indu.try 10 Depressed. and
What lie Asked for Its Relief

What IL Asked for Its Relief
The tobacco trade of the country is Just
now in the most depressed condition known
since the panic OF 1873. The depression is
greatest in this city. The extent Of the de-
preston is shown by the figures giving the
production Of cigars. cigarettes. and manufac-
turcd tobacco in the Second and Third districts
Of New York city during October and Novem-
Der. us furnished by Mr.. Il. H. Ford Of the To-
Jacco Journal. In October sl.475.000 cigars.
"a ga 900 cigarettes. and 500 S3S pounds OF to-
bacco were manufactured. In November 6s.-
794 900 cigars. 29. 526 600 cigarettes and ASP 245
pounds of tobacco were manufactured. The
decrease in the number Of cigars made was
1861 900. The decrease in the cigarette pro-
duet was about the same.
There.are several causes tof this condition
of the industry. but the chief Is the uncertain
ty about the action OF Congress concerning the
taxes The tax on manufactured tobacco is
sixteen cents a pound. on cigars it is SC a
thousand. and on cigarettes weighing less than
three rounds to the thousand i is sl.T5. Con-
gress has been asked to leave the tax as il is TO
reduce tn. rate Gf taAation and t9 p h the
that no change would be made. there would be
only depression that Is incident to the season
Of the year and an acknowledged over produc:
ton. But W tn the prospect VI u reduction of
the taNes arises the question 81 what is to be
duction takes place. 1t has been proposed that
a rebate be allowed equal to the amount OF the
,aN IMPOSED on all goods then in original un;
that the reduction take place SIX or eight
months after III" bull passes. thus. giving the
Manufacl urers object to any reduction taking
p!nce without rebate. even six months after the
the demand would be reduced to the lowest
tlr;nre and the greatest dulness would prevail.
Commissioner Raum objects to allowing q re-
bate, because he thinks it would lead to endless
litigation. and because there is no money in
the Treasury from which to pay the rebate, AS
Eress will do, tho trad. is preparing Tor the
worst by buying only from hand TO mouth.
faetnrer ITO 10 a srs reporter ii thay have have"
large stock; .when.the tax is taken Of the mar:
OF the reduction of the tax: They coudn' stand
that, for they have margin OF only about three
cents a pound"
the trade is the importation OF Sunatrn to-
hacco. This isa comparatively new trade. When
product was about $4,000 bales. This years
product Is nearly 10000 bales; The import tax
valorem. After January the nd valoreln tax
will be removed. This Will reduce the market
price 10y that amount and the leaf trade will be
he brought to bear on Congress to have the
duty on this tobacco increased to point that
wlll prohibit its importaton. in order &c. re-
leve the American producer from competition.
Another cause for depression is the agitation
for what is known MS the Free Leaf bill. This
grocers 10 sell lcaftobacco rs freely rs they sell
cabbages. A dealer for illustration. broke up
u leafof tobacco in his hand. There" said
he. holding it IN his hand that is Just rs good
Durham. or Vanity Fair. or Old Ju Ice a the
market affords. II they allow free leaf sales
10y the country grocer. while "" are taxed or
Is cents ON the manufactured article. the gro
Ger will rub the Leaf through II sieve and sell rs
good an article rs ours for or l6 cents less II
pound. IL they take OF the tax entirely we
won't care. We will all be on IN equality"
The majority OF the manufacturers are in
favor ola total abolition OF the tax They would
not be- quite so strenuous tor the rebate OF tax
on the stock on hand provided the tax We're
wholly abolished. One argument urgod in
favor OF Il total abolition is that over 60. 900
skilled workmen are employed in this trade.
Those of limited resources are compelled to
remain wage workers. because of the large
bonds that II man must give br fore he can start
in business for himself. No other class Of me-
chancs is thus hnmpered.
The evil effects of the depression fall heavily
on the employees. A1olph Strasscr. President
Of the CiEnrmnkers' International Union. says
that from L. 300 to 800 people in his branch Of
the trade are now idle in this city. None Of the
large firms il working full time. The most OF
them are working about three days n week.
will be left idle. Men average only sl2.75 u
week making cigars in union shops in good
times. The most that the union can now do
for those out of work Is to send such aS will 20
from town to town until work IS found \
proposition to establish cooperative factories
hv the union is under discussion. II would
TAX" two or three months to do this. The
union has ample capital. Many members favor
m" scheme. Mr.. Strasscr said that the ch ief
drawback would he the 4 ificutv of selling the
product and gett nG he cash. The large iacto-
rcs sell on long time and very easy terms.