The times., 1897-06-11
NOW THE TOBACCO TRUST
II Looks for Proper Protection
at the Hands of Congress.
WHAT THE HIGHER TAX MEANS
VIII Probably Strangle the Only
Competition with Which the Great
Monopoly Has to Contend Can
Add Little or Nothing to the
Government Revenues.

The toba acco men are making stifffight
revenue tax on manufa ctured tobacco, and,
with the powerful allies they have on the
floor of the Senate il looks as il they
would win. The struggle means more than
is apparent on the surface. IL is another
fight for and against trust.
II is said that the Tobacco Trust Is not
seriously antagonizing the proposed liz
crease in the tax. On the contrary, If the
increase prevails. the only opposition the
trust has VIII be wiped out OF existence.
The trust gradually absorbed all the large
manufacturers of tobacco and then began
to dictate the quantity OF the output and
the prices. 1t sells two-ounce plug OF
tobacco for five cents. Many of the small
manufacturers, iii order to hold their fast
diminishing trade, banded together and
placed upon the market three-ounce plug
Of toba eco for five cents.
Gradually they have made inroads on
the trust and are, at least, said 10 be
holding their own. II is claimed that il
the tax is increased it viii be impossible
for the small manufacturers TO continue
selling this liberal plug, and they will be
forced To meet the trust on equal grounds.
This, OF course, means their ultimate de-
struction 1t is no wonder these men are
fighting tie proposed increase In the tax.
In addition TO these reasons, it is as
serted that tie proposed increase in the
tax would add little or nothing 20 the gov
ernments revenue from this source, and
statistics have been submitted TO prove
this assertion IL is shown by the tobacco
people that the existing rate OF cents
pound on manufactured tobacco and the
existing tax on cigarettes produced an
average annual revenue of $4,000 900
despite the hard times, while the tax of
cents on tobacco, which was levied from
1884 to 1890, produced no greater aver
age tax of "a cents a pound was i'm
posed from 1876 to 1878 and 81 90
thousand on cigarettes, and during that
Period the average revenue was only about
S26 ,0oO.0 a year Then the tax was
reduced to l6 cents a pound on tobacco
and increased to 81 Z < on cigarettes. This
was from 1877 . to 1883, and during that
period the average revenues amounted to
but $4,000, 900.
These figures show conClusively that for
the purpose OF securing revenue the pro-
posed increase in the tax viii not be what
the Committee claims, and.it would be
useless to make the change. The manu-
facturcrs would be put to much additional
expense in changing stamps, dies, molt!s
and wrappers, and the expenditure en-
tailed upon the Government would not. il
is claimed, justify the small increase that
ui ght possibly result from the new tax.
The discussion in the last Republican ca1-
Gus indicates quite plainly that these pr.l-
posed increases in the internal revenue fea-
lures of thebill willfall of their own wei snt.
They are obnoxious to an extreme degree
to many Senators, and particularly 20 The
Republican leaders in the House The an.i-
beer and tobaccotaX men have joinedforces.
and the prediction was freely made yes
tcrday that both these provisions would he
stricken out