The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-10-21

The proposition before the ways and
means committee OF the house OF rep
resentstives, coming from the Demo-
cratic members Of that body to increase
the revenue tax on domestic tobacco
from So to So, being part OF a scheme
for the raising OF the revenues, the
other looking to reduction OF tariff
duties, is looked upon by the cigar
manufacturers OF this city with grave
concern. The INTELLIGENCER reporter
had talks with a number OF the princi-
pal manufacturers yesterday and every
one OF them agreed that ii the object
was carried out it would be disastrous to
the stogie industry OF this section. Vir-
tualy it would compel many small es-
adjustments to quit business, and
where the work would be continued
there would be a considerable cut in
wages.
Mr.. Andrew Seamon, OF II. seamon &
Son, was emphatic in expressing the
belief that no more serious blow could
be aimed at the tobacco manufacturing
industry in this city. The increase in
the tax as proposed would compel every
manufacturer to double his capital, and
that he knew, many would be unable to
do. At present, he remarked, the in
dusLrv was in Il prosperous condition,
but the addition OF So tax would mate
rally cripple itwithout resulting in any
benefit to the consumer.
Mr.. Augustus Pollack was very busy
when tho reporter called, but spared
enough time to say that he was opposed
TO any increase in the tax. The propo-
sition, he said, meant an increase in the
tax on stogies and tips. There. were
many concerns, he thought, that could
not survive ii the measure was passed.
Besides it was not right to tax an article
worth $ll more than production worth
$50.
Mr.. c. F. Brandiass, of MUM 4
Brandfass, was unequivocally opposed
to the proposed increase. ut will
affect the cheap grade OF goods, and vir-
tually ruin the stoge, tip, chewing and
smoking tobacco industry in this city.
II they want to increase the revenue
why don't they increase the tax on
cigarettes? They are only taxed 80
cents thousand, while stogies and tips
are taxed at S. per thousand. There is
an inequality that | don't think is
right. / estimate that the cigarette
output OF the whole country for the
present year will be 3, 350, 100000. Now
an increase OF tax in that direction
would yield very handsome revenue.
| am most emphatiCally opposed to any
increase OF the present tax oil - per
thousand"
Mr.. Hugo /. Loos considered the pro-
posed increase a very serious matter Tor
The manufacturers OF stogies OF this sec
lion OF the market. There are many
reasons for this concern on our part"
said Mr.. Loos. "Ever since the reduc-
ton OF the tax IRON So to 50 per thou
Sand the manufacture OF stogles and
tips has been in prosperous condition.
1t was the Congress of 1928 that passed
the measure reducing the tax, the law
going into effect April l, 1888, and from
that time until the present the stogle
business has been increasing in volume,
having been much more successful than
in the former years OF its history. This
reduction benefited the manufacturers
and employees alike"
SIN what respect?" asked the re-
porter.
In this way. When the reduction OF
the tax occurred Garfield Assembly OF
cigarmakers demanded an increase OF
p cents per thousand, which was
granted. The business continued to in
crease to August 1890, to such an extent
that the manufacturers were enabled to
allow an additional increase Of 20 cents
in wages. At the same time this in-
crease did not affect the consumer. For
example, when the tax was 81 stogies
sold on an average OF Sl1 per thousand.
Under the reduction and notwithstand-
ing the advance IN wages we are now
able to sell better grade Of goods from
SIS 70 to 50 per thousand. There has
been vast increase in this district in
the volume OF business. At the end OF
the revenue year June 80, 1892, the in
crease was something over $500, 900;
and for the official revenue year ending
June 80, 1898, the increase was 4,S70,-
O70.%
"What will be the effect OF this pro-
posed increase Of taxi"
I'll Congress advances the rate to Sc
l do not see that there is anything else
left for manufacturers to do but to re-
duce the wages to the standard than oh.
tanned under the So rate. Furthermore,
if the tax is increased as proposed every
manufacturer will be compelled to in
crease his capital correspondingly. For
instance say manufacturer turns out a
million cigars month. Under the
present internal revenue measure the
tax on the product is $1,000. Ii the
rate is increased to So per thousand the
tax will amount to $1,000. Consequent
" manufacturer will have 10 double
his capital without any corresponding
increase in profit. That's the way it