The times., 1898-05-09
Senate Committee Hopes 10 Fin
iSh lis Work Wednesday.
MANY CHANGES NECESSARY
The mouse Bill Has Been Found 80
Amendments Must he MEde-An
Effort 10 Increase the Tobacco Tax
and Make Horizontal Stamp Tax.


that the whole scheme of stamp taxes in
the House bin is to be recast and placed
upon an entirely different basis While
no vote has been taken on the question,
il is pretty well settled that none of the
taxes that are TO be imposed nor any of
the increases in the existing internal
revenue taxation provided for are to be
made operative against stock on hand.
With the exception of the proposed in
creases in tax on manufactured tobaccos,
the amount involved would be too small
TO justify attempts at fraud and the
committee believes there will be no trou-
bic in regulating the new tax without in
terfering with stocks that may be on
hand
It is very probable that the Senate viii
increase the internal revenue tax on to-
bacco above that fixed in the House bill
Existing laws fixes this tax at six cents
a pound and al this figure the receipts
for the year aggregate s16,510,O00. The
House increased this tax to twelve cents
a pound which, of course, doubles the
revenue. There are TWO propositions be-
fore the committee on this schedule. One
is TO increase the present tax to sixteen
cents a pound and the other TO run it up
10 twenty cents a pound. The larger fig
ure is just half Of the amount of the to-
bacco tax during the civil war Twenty
cents a pound would jump the internal
tax from Sl6,5OO.0OO TO S55OOO,OO0, a very
considera bic increase on one article.
Strong arguments are being advanced
before the committee 10 put this tobacco
tax up 10 twenty cents, for the reason
that it is the best figure for the adjust
ment Of packages with respect 10 size and
the distribution Of prices and proii's as
between the manufacturer, the jobber,
the retailer and the consumer. Based
upon the four proposed rates OF taxation
and taking packages Of such weight as
would fairly correspond. the result shows
that the prices and profits of each class
Of those handling tobacco remain about
the same. In the finer grades of tobacco,
with a six cents tax, there are eight
packages of two ounces each selling at
I'VE cents each. This pound of manufac-
tured goods is sold by the manufacturer
at twenty-eight cents TO the Jobber; by
the jobber TO the retailer for thircy-one
cents and by the retailer 20 the consumer
Tor forty cents. At a twelve cent tax the
size Of the package Is reduced 10 l6
ounces and the wholesale price increases
to thirty-five cents with four cents profit
taller. With a tax of twenty cents the
cost 70 the manufacturer Is put at forty
four cents with four cents profit to the
Jobber and twelve cents to the retailer
Would BENEFIT the Grower.
The same proportion of increase in cost
and distribution of prices is seen in the
cheaper grades of tobacco. The argu-
ment has also been made that with
mill
ceive q larger price for his product by
reason Of the increased price of the goods.
The tax would not fall upon the grower,
but upon the manufacturer, the jobber
and the retailer. This higher price for
tobacco has been Invariably the rule when
higher tax rst-s on tobacco have existed.
Notwithstanding the fact that tobacco
paid 20 cents pound during the late war
the Committee on Ways and Means of
the House seem 10 have selected the war
rates on all other subjects Of internal
taxation. in fact, i'm doubling the tax on
beer, but leaving the tax on tobacco at
less than oue-third the war rate. A tax
OF 70 cents pound is only one-half of that
imposed IN 1854. For this reason a big
fight is 10 be made for the 20 cent tax.
The committee will begin today the
consideration Of the stamp taxes imposed
upon perfumery, cosmetics. proprietary
articles. etc, that part Of the bill having
been given some very careful attention
by subcommittee. There are many am
bigUities in the House bill on this ques-
ton and many conflicting rates imposed.
j IS understood that an entirely new
method OF dealing with this matter viii
be reported. On proprietary articles and
preparations the House bin assesses a
tax Of j cent on packages, boxes, bot
Ties, etc, Of pills, powders. tubes, loZen-
ges. tonics, ointments pastes waters
gTnrl %EnF1 IsaGc M I'D
10 cents in retail value and ] cent tax
where such value does not exceed . cents
and in the same proportion for increased
retail value.
An Ambiguous Schedule.
Put this alongside Of section 70 and
Eome strange results are seen. Section 10
provides that all uncompounded medicinal
drugs and chemicals and compounded
medicines, according TO the pharmaco-
poeia and dispensaries. together with
the prescriptions Of physicians, are ex-
empt from this tax II has been pointed
out that the difficulty iG constituting this
exception is to determine what is ana
what is not a secret formula, and also TO
determine how broad the words ''prepa-
Tati1ns" and proprietary articles" are;
whe-her they would take in stove polish.
boot blacking, sewing machine oils and
things Of that class. ell of which. in the
language &C the bill, are articles" sold
under letters patent
Take the article OF perfumerv. upon
which there Is imposed a tax Of one cent
on each article retailed at q cents In
perfuuiery and cosmetics there are a
number Of articles identical with those
named in the section fixing the tax on
proprietary articles. Waters are taxed
under the one and toilet waters under
the other, but with different rates; ex-
tracts appear IN both oils under prop
Tletary medicines and hair oil under cos
metics; nastes have one tax I'm one sec
tion and another. as toothpicks. in a diff
ferent section. If these pastes in the
perfumery schedule We're attempted to be
classified as belonging TO the medicinal
schedule and were found in pharma-
copeia- as to their components they
would be free OF all tax. All of these
points having been raised. and many
others that II is needless TO repeat the
committee has been driven to the conclu-
sion that readiustment of these sched-
ules is imperative
II has been argued by some senators
that the only way 10 make this stamp
tax just is TO make as low a rate as pos
sible and spread II over all articles that
can possibly come within the line Of taxa
tion- Consequently a provision should
be substituted for all of the provisions =.
schedule B that is broad enough TO take
in everything sought TO be taxed and in
capable Of being ambiguous. Such an
amendment has been considered and the
only thing that causes any doubt about
fits adoption is the fact that il is mani
festly just and hits all alike.
Tax All Alike.
This provision should provide for 4
specific amount of tax on each dollars