The sun. [volume] (New York [N.Y.]) 1833-1916, 1882-03-26
THE TAXATION OF CIGARS.
REVENUE REGULATIONS THAT TEND TO
EVIL AND CAUSE REGULATIONS.
FormaIIties that Foreigners Understand with
Observation-Disclosures TO the Laws Caused
by the Practices OF so-ca He'd Detectives,

fOT persons WHO uCSlIe 10 COuuuCL bOIne
branch Of the tobacco business the Government
has issued two pamphlets. One Is q tax man
ual for cigar manufacturers. containing the
portion OF the new compilation Of Internal rev.
cnue laws now in force relating to the manu-
facture. removal. sale. &C.. of cigars; and in
Guiding regulations. instructions. rulings ana
decisions Of the Commissioner OF Internal Rev
enue on the subject" The other u entitled
"R Revised regulations concerning taxes on to-
bacco, snuff and cigars. under the Revised
Statutes of the United States as amended By
the act Of March l. 1879" Together they agRre-
gate lis pages OF solid statutory and explains
tory matter. and about 81 pages OF the whole
quantity are devoted to the cigar business.
Realize II you can" II gentleman thoroughly
conversant with the tobacco and cigar business
said. what effect that ponderous mass Of for
maities must have upon poor foreigner.
laws. and who impertectly understands our
LANGUAGE Observe what ponderous deal Of
keeps strict supervision over each ounce Of
tobacco, presumably. at least, from the time IL
limited by law as to parties to whom he can
ES makes E1ery leaf tobaseo dealer is
and sales. and is limited by law in his sales 70
those who have paid tax as manufacturers or
agents take copies from the leaf dealers books
every month. and lists OF purchases by them
are sent for verifcntion by comparison with
growers returns 10 all collectors in the tobacco
growing DISTRICTS: and lists Of sales are also
sent to every collector in the country 70 see that
they are duly entered upon the books Of pur-
chasing manufacturers. Every cigar manu-
faeturer Is required TO enter upon his books
bonds, bonding the room or rooms where he
proposes to carry on the bus mess OF man ufac-
turing. must keep record each day Of the
cigars they have made. how many boxes have
been bought. how many tax paid stamps have
been purchased. and how many cigars have
been sold. All these facts must be embodied
in sworn monthly statement to the Collector
Of Internal REVENUE who has " keep a regular
charging him with the tobacco he receives and
crediting him with the cigars he makes. Al
the end Of the year an Inventory is taken.
showing how much tobacco il on hand, how
much has been consumed during the year and
manufacturer If the manufacturer has not
made enough cigars to meet the requirements
OF the department. for tile amount Of tobacco
used u 600 cigars Tor every twenty hve pounds
Of leui. an arbitrary assessment is made upon
him to make up the deficiency. Of course. II
been stolen or burned. or that he has had to
employ it IN making cigars Of extraordinary
proportion between number and weight, then
he is hot 50 assessed; but If he cannot make
such showing then he must pay whatever de.
iiciency eHists-or, in other words must pay for
the ngn-aprarent cigars which. according to
bis weight Of leaf he should have made.
That is a general outline Of the require.
stand all its intricqc!gs and keep track OF the
many rulings and decisions affecting its pro.
At the same time II must he admitted that
without all this machinery it would hardly be
possible to draw such Il revenue from tobacco
a. it now puys. The internal revenue COLLEGE
tions on cigar, manufacture, throughout the
SG"My or to s ndheT whole SH aSs
from tobacco in all forms being about s45. 0OU.-
1uJ-and of the item under the head Of cigar
manufacture New York city paid s4.O7S.749l3,
or more than nc-Quarter. 1t is supposed that
with all the ingenious devices and the vigilance
employed to nuke the collection Of this tax
thorough, about ten per cent. Of the cigars made
escape aNutlon in some way. In some measure
this may be accounted ior by the fact that
70 twenty-five pounds of leaf is quite .
liberal one, especially since popular taste has
cigars than it formerly did. But far beyond
this Is The result OF the nknown quantity OF
separahie from the operations OF reyenue tax
on snal Manufacture. There are in New York
about ! 200 cigar manufacturers some OF them
eeondnctins immense establishments IN which
hundreds OF hands are employed but the great
majority of them, doing business in u, small
way, merely employing from one to half
dozen hands III little rooms. duly bonded as
mahuiaet9r.es in the rear OF retail stores.
three worl;men in each in addition to the pro-
Erletor. who himself works at the bench. Now
look nj the situation Of one Of these small
manufacturers. There is an open door on
H Where he JJeils at retail; there Is an.
the apartments where his little, family OF
wife and babies live upon the small profits Of
his scuutlly rcmuncrutive business. Ii Is hard
work i2r him to get along. with all his indus
try and ECONOMY. Is il not more than can be
gNpeot d OF poor; weak human nature to be.
times, when alon" in his shop at night TO take
Z handful .: tyo OF cigars from the benches in
his factory and put them in the half emptied
boxes in his show case Tor retail sale. without
regard to the sacred right Of the Internal Rev.
eEuS Department t. levy taY upon each ono
e. rlf h,. c.. NlQl Inv IL
very small, hut III circumstances such AS his
every .t!!e hepf. III" injury TO The revenue
l. ltluitrS mai bat there is another conSid-
Grafton We, worthy OF contemplpton-the in
!Hfy t. IL" man himself aid Y his family by
tempEugn Tor violation Of law. 1t is not
HSHt nm; Tor ANY man 10 Trow hardened
M" tax affords 4 con~tInt temptation to such
d's,".;!ra in the manner have Just Indicated.
uu' n"rva-ori.y less in practice. is the result Of
holds GA; 10 dishonest worHinrn II is not a
rare thta- ipr tnem 10 p.iler small quantities Of
!,0t t"barn" from the large factories in which
they ~" emln'yel. and, in the seclusion Of
which they dispose of nj lower prices than tax.
paid ones would .OmmGud tu beer saloons and
gguE SHOPS. 1t may be- SAID that the men who
W"u. - "pt&ih r'sHrs l,I sale and those who
would buy them. would probably he thieves
and T. divers 81 stolen goods ii opportunity
r"y"i.ur aW "r go, hut that does not alter tile
fact MAT an extraordinary temptation is held
such rntty 'asrulity by tie law rs Il exists.
And there Is sun another element Of demor-
ljif",lou IA tie WORKINGS ui this law in the
IT. ierr' wrl4'Nut "a lie minds OF many per-
'NhS. t"ryuTl l. a. uIi.r'lo, = 81 class ut special
a., i..' o.! ~" iuorMHl Revenue Department
Nrp" l~ 'r'".i. ives, These detectives have an
e'I !l-"tuN IA lnNentlng rIetcvts Tor the
i''srv. it'h 81 mail manufacturers not ul-
way !, j. ny"ri'd trpm an urseiil5h devotion
L. tull', l"u nav" afrliy seen what a mass