Daily tobacco leaf-chronicle. (Clarksville, Tenn.) 1890-1895, 1890-05-08
TAX ON CIGARS.
Changes Recommended BY Com.
missioner Mason
To Existing Laws Taxing the
Manufactures

Many People With Very Limited Capt
Not Owing TO the High Tax Levied
Upon Manufacturers-Bon Work.
men--Packing in Smaller Boxes.
WASHINGTON, May s.-The secretary
of the treasury has forwarded TO the
speaker Of the house letter from Com
missioner of Internal Revenue Mason
recommending certain amendments to
existing laws taxing manufacturers of
cigars. Commissioner Mason's letter 10
rs follows:
TREASURY DEPARTMENT, OFFICE OFT
INTERNAL RRvENUR.
WARRINGTON, ID. C., April no, 1900.
Hon. William Window, Secretary Of the
Treasury.
SIR have the honor to submit herewith
certain notifications, amendments, etc.,
to existing laws with reference TO taxation
on manufacturers OF cigars, which, after
careful investigation of the snbject in all
its bearings, | unhesitatinRly recommend
be submitted to congress for adoption
That's ection 1887 be amended as follows:
The word 'one" be substituted in lieu of
five before hundred dollars, and the
words following viz; with ana dditional
800 for each person proposed to be EN-
ployed by him in making cigars be
stricken out from said section
My reasons therefore are, first, such q
modification would tbe popular in accord
ance with the pettioned request of numei-
Gus poor persons who wish to engage In
the manufacture of cigars with a very linn
tied capital and acquaintance, and TO
whom the present law is practically pro-
hibitory.
The penal sum Of the bond required Of
manufacturers OF cigars was fixed at
time when the rates of the tax on the in
terest involved were much greater than
they now are under the present. ] am, there
fore, clearly of the opinion that even the
minimum sum of bond may he diminished
TO $l00 as recommended, and then be am
pie TO protect the interests of the govern
ment No harm would result TO govern
ment Interests, rs the discretion Of the col
lector is exercised in each case, and II il
only the minimum amount of bond that Is
proposed for amendment.
There does not exist any good reason for
bonding the employer for the workmen
employed 1t is not done with distillers
or brewers or manufacturers Of oleomar-
garine, and no advantage has yet resulted
therefrom
The intent Of the law requiring bond
of 800 from each maker of cigars was to
furnish the collector with some average
data as TO the probable output OF the fac
tory and the quantum of business pre-
posed to be done but the general introduc-
tion and the utilization of machines In
the making of cigars, the evident ten
dency to generally displace hand work
by the use of perfected machines, the for
nation of unions, frequent strikes by
workmen, etc, renders the existing statute
OF no practicable benefit, and its abroRa-
tion would be eminenely proper
Based upon the almost universal de-
mand, as evidenced by the numerous re-
quests and petitions on file in this Office,
have the honor 10 recommend and urge
amendment to Section 1892 revised stat
utes so as to provide for packing cigars In
boxes TO contain twelve or thirteen each.
My reasons for recommending this
amendment are an almost universal de-
mand by manufacturers of cigars, who
state that under existing laws they are
compelled TO pack cigars in boxes TO oon-
tain twenty-five This results in furnish
ing gratis samples OF twenty-five, when
twelve or thirteen will accomplish the
same result Their agents are forced to
provide space in their trunks for double
layers, etc, and put to additional expense
therefor, both in space and transit
charges
Many manufacturers now put up sam
pie boxes of twelve or thirteen cigars, Gov
cred by twenty-five stamp, at great pc
cuniary loss to themselves and doubling
Of rate Of taxation.
This Office has prohibited the continu-
ance of any and all such practices, and has
notified manufacturers of its sympathy
and intended cooperation in securing an
amendment TO existing laws whereby they
may be authorized TO pack in quantities of
twelve oFsthirteen.
also recommend that Section 1894 be
amended, providing for uniform rate of
taxation as nearly approximating the
present rate Of three dollars per thousand,
viz; strip stamp Of four cents for boxes
to contain twelve or thirteen cigars each,
leaving to the manufacturer in his discre-
tion to pack twelve or thirteen in box for
sample purposes
respectfully suggest that you will take
such action in accordance with the forego-
ing recommendations as will secure
prompt amendment of the sections referred
to. Respectfully yours,