Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1882-12-21
THE TAX ON TOBACCO.
Views of Manufacturers and Dealers
A Steady and Uniform Tax Desired
mere Than Repeal.

| a steady and Gniferw Tax Desired
mere Than Repeal.
At a meeting of tobacco manafac-
turers of st. Louis it was stated openly
that most of the large houses would
be compelled to shut down it the de-
mand did not show healthy increase
shortly. The general sentiment SEEM
ed to be that the depression in the
trade was greater than it had ever been
in St. Louis since tobacco manufactur-
ing had become a great industry there.
The causes of this depression were
discussed, and one reason was given,
VIZ: The constant agitation in con-
gress of the questions connected with
| the tobacco tax. Retail dealers were
afraid to buy because it was not known
| and could not be ascertained when the
| tax might be abolished, and the re-
taller who had laid in a stock would
thus be caught with goods on his hands
on which he had paid tax which was
no longer in existence. The real OBJ
lect of the tobacco manufacturers was
simply to prevent the agitation. A
resolution was adopted, that the tax
on tobacco be abolished altogether;
second, the legislation looking to that
end be enacted as soon as possible;
third, that a rebate be allowed on all
unbroken packages in the hands of
dealers when the law abolishing the
tax goes into force.
The Cincinnati dealers and manu-
facturers have but one opinion regard
ing the tax question, and that is that
it ought to be settled at the weary ear
liest possible date. The manner in
which the question is settled is of sec
ondary importance. Anything would
be better than the present condition of
uncertainty. Factories are running on
only part time, and will reduce their
production still further. This has
domoralizing effect on the market, and
causes hardships to all in any way in
terested in the trade, unless it be the
retailers of manufactured goods. AS
to the manner in which the question
should be settled the trade differs. If
the tax is taken off, the amount of cap
ital to carry on business will be much
less, but with that advantage comes
the danger that numbers of small man
ufoctories will be started by men who
could not command the required capi-
tai sheuld not the tax be reduced or
abolished. Mr.. F. A. Prague, presi-
dent Of the Cincinnate Tobacco Associ-
alton, says that if the tax is abolished
it ought to be so arranged as to have
the change take effect at as early
day as possible. 1t should, however, be
accompanied by rebate. That is, all
dealers who held stock on which the
tax has been paid should be remuner-
ated to that amount. Some of the
trade feel that if a total abolishment is
not possible st present they are in favor
of s. reduction to s cents..on tobacco and
cents on cigars.
A Chicago manufacturer, speaking
for his class, says:
of this country desire in regard to taxa
ton is stability. The consumer has to
pay the tax any way. He pays the re-
taller, the retailer pays the wholesale
dealer, and the wholesale dealer pays
the manufacturer, and the manufac-
turer pays the government. So far as
the manufacturer is concerned, it makes
no difference to him what the rate of
taxation is. The only thing detrimental
to him is talk about taxation. No manu-
facturer cares whether the rate is Is or
80 cents a pound, if congress will only
let the question rest. But every time
congress meets some irrepregsible mem
Der, to satisfy his constituents, intro
duces q bill to change the rate or to
abolish the tax entirely, and from that
moment, dealers supposing they are
going to lose the reduction, trade is
almost paralized until the bill is finally
disposed Of or congress adjourns. Even
since 1877 from one to q dozen bills
have been handed in, and every time
the trade has been affected"
"How is it now?"
Totally paralyzed. Every factory is
virtually closed, so far as making goods
is concerned"
'In the event of the tax being reduc-
ed or taken off, who would suffer-"
fThe wholesale and retail dealers"
"The manufacturers do not object to
the taxi"
"No. 1t is not burdensome, and the
restrictions pinced upon them by the
treasury department are trivial, if
person wants to conduct his business
honestly. All the manufacturers wants
is to be let alone-to have agitation
ended. Congress can take the tax off or
leave it on. Every manufacturer wants
the 16cent rate retained, or to have it
abolished, because, as soon as the next
congress meets, there will be another
howl for reduction or abolition, and
trade be stagnated. We want no reduc-
ton until the tax is entirely removed