The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-04-17
WAR TAXES TO BE IMPOSED.
SAVANNAH WHOLESALE GROCERS
TO DISCUSS THE SUBJECT.


All stocks Now in This Country.
savannah GrOceFs Think This Is
Right. Otherwise the Government
Would Lose Large Amount OF
Revenue and Spectators Would
Get the BeneHt-The Tax on stocks
of Coffee Now in This Country
WouId Bring in I5,OOO,0o0.
A meeting of the Wholesale Grocers' As
ISOLATION OF Savannah viii be held to-
morrow TO discuss the taxes which 1t is
understood the government will impose
upon coffee. tea, tobacco and other luxu-
. ries in case of war.
The meeting will be held in response 10
a telegram from the president of the
Southern Wholesale Grocers' Association,
whose headquarters are in Richmond, urg-
ing the wholesale grocers to memorable
their senators and congressman in favor
OF the passage Of the bill, but against that
section which provides that the increased
tax shall be levied, not only upon imports,
but upon all stocks Of goods in the hands
of importers, jobbers and retailers in this
country
government is expected to levy a tax of
3 to cents per pound upon coffee and 10
cents per pound upon tea. The moment the
tax is levied every pound of tea and coz.
fee in the hands of the traders of this
country is worth just so much more, ac-
cording to the tax 1t would be a great
snap for the SPECTATORS. The government
i fly,r7 l,fsNry war
from the results of the Dingley bill. The
importers had loaded up on the goods on
which the Increased taxes were levied,
and the result was that the spectators
made immense profits, while the revenue
of the government, instead of increasing,
fell off Had the government adopted the
policy of making the new rates applicable
to all stocks on hand on the date on which
the new rates went into effect, the result
would have been very different, and mil
hons of dollars which went into the pock-
cts of the spectators would have gone in
to the treasury of the government
The action of the Savannah wholesale
grocers is not likely to be in line with
that recommended by the president of the
southern association. The Savannah
wholesale grocers know a good thing when
they see it, but they have some sense of
the justice of things. While the results
of such a bill as that recommended by
President Levy of Richmond would be to
make neat profits for all of them, they
realize that millions of dollars which
should go into the treasury would remain
in the pockets of private individuals with
out one cent of benefit 10 the people at
large. The moment tax of 4 cents
pound is placed upon coffee, that article
becomes worth just cents a pound more
and no grocer would be such a fool as to
sell ii al the old price.
II do not think the action OF the whole
. sale grocers of Savannah will be In line
with that suggested by the president of
the southern association" said President
Joseph Ferst of the Savannah association,
TO Morning News reporter yesterday.
while IL would be a nice thing for us to
get she benefit of the increased value as
the result of the tax, we are willing for
the government to get this. Our profits
will come later. The government cannot
afford TO do otherwise. There are now in
the hands of the jobbers and other dealers
IN New York about one and a quarter mill
lion bags of coffee. There are about 140
pounds of coffee to the bag. AT cents a
pound the tax would amount to $500 a
bag. On one and a quarter million bags
this would amount 10 100000. AS there
Is probably fully as much more coffee held
by all classes of traders throughout the
country the immediate revenue to the
government from this source would
amount to fully $14,0O0000. Should the bill
Imposing the increased tax be passed with
out the provision to tax stocks in this
country the result would be that there
would be no coffee imported until the
mar I,
government would be loser instead of a
gamer"
CoTee Is now very cheap, Mr.. Ferst said
Rio coffee selling at wholesale at 6 to III
cents With coffee selling at 10 to ILL., cents.
MIR. Ferst admitted that the grocers would
make better profit. The grocer's profits
being calculated upon a basis of percent
age, II is evident that with coffee selling
ior % per cent. more than at present, there
would be more money in il for the dealers.
though their profits were calculated at
the same rate per cent
Tea, Mr.. Ferst said, is high now. the last
tariff having shut out the very CHEAP
grades of tea The cheapest grades now Of
fered bring from 25 to so cents pound and
the finer grades much more. An increase of
ten cents pound as proposed would be
very materially felt by the tea trade.
Mr.. James M. Dixon expressed himself
very much on the same lines as Mr. Ferst
il would be losing business for the gov
eminent Mr.. Dixon said, to impose the
tax without taking into consideration the
stocks now on hand, and would merely re-
suit in putting millions of dollars in the
pockets Of spectators. Messrs. George w.
and /. d. Tiedeman are understood to hold
10 the same view.
Tea and coffee are not the only articles
OF generally consumption on which a war
tax Is expected A tax of u cents per
pound upon all smoking and chewing to-
pacco is anticipated, and an increased tax
upon cigars of 81 per pound. An increase
In the whisky tax is also expected. These
would operate differently, however from
the tea and coffee taxes.
The government would not be able TO
collect the additional tax upon whisky and
tobacco which had passed from the hands
OF the distiler or manufacturer to the
Jobber or retailer. At least a prominent
business man so stated to a Morning News
reporter. The revenue stamps having
been issued by the government aud placed
upon the goods, he said. the government
could not demand further taxes upon such
goods. The stocks in bond and in ware
houses. however. UDon which No st,.,,.