Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-04-15
LEAF-TOBACCO TRADE.
The Eject of Commissioner Wilson's
Ruling.

DANVILLE, VA. April 1L-(Special.)-
The Danyille warehousemen and dealers
in leaf tobacco were to-day acquainted
with revolutionary ruling OF United
States Commissioner of Internal Revenue
George W. Wilson, the effect of which Will
bs a readjustment of the present manner
OF selling tobacco, so as To conform 10 the
law. The trade was unprepared for the
position taken by the department, and
what future action will DO taken Is not
clearly defined.
The ruling, which affects all markets
where the sale Of tobacco is by piles, con-
strues certain paragraphs of Circular No.
523-"Sale of Leaf Tobacco in Quantities
Less than a Hogshead, Case. or Bale
issued by former COMMISSIONER y. r..
Scott. on February 20. 1899 In the cir
cular referred to appear these para
graphs:
Every person. except the farmer or
grower of tobacco. whose business it is TO
sell leaf tobacco in quantities less than
a hogshead case. or bale, is required to
qualify as a manufacturer of tobacco.
Dealers i'm leaf tobacco will not
be permitted 10 sell leaf tobacco in quanti-
ties less than n hOgshead, case, or
bale. A dealer I'm leaf tobacco may
assert and repack his tobacco. The pack
ages into which he repacks his tobacco
must conform TO what are recognized as
commercial hogsheads, cases and bales,
of such size and weight as are generally
put I'D I'm anticipation of the wants Of the
above class of customers. The dealer
cannot break hogsheads, cases, or bales
and retail tobacco therefrom without rem
dering himself liable TO special tax i'm
posed on manufacturers Of tobacco, and
for the tax of y cents per pound on all
tobacco so sold by him In contravention
of the statute
Commissioner Wilson holds that
dealer after receiving tobacco from the
farmer is required to pack it in hogs
heads, cases, or bales before delivering IL
70 another persons. The class Of middle
men. known TO the trade as "pinhookers."
it is especially pointed out. are liable TO
the special tax. and are required TO keep
a record and report their sales, as other
dealers
The rehandling Of tobacco from one
market to another. or on the same market,
in quantities less than a hogshead. etc.
ia expressly forbidden under dealers
license, and failure to comply with this
and other provisions of the law as in
terpreted will render the offender liable
to the special tax and to have his tobacco
forfeited.
The ruling was made known personally
by Special Revenue Agent John Sinsel to-
day I'm a visit he paid 20 the ware
houses This agent was here two weeks
ago investigating the manner Of handling
loose tobacco, and made a report Of his
observations 10 the department, with
request for a ruling as TO the provisions
of Circular No. 523, quoted above.
The effect Of this ruling. il is believed,
will be 10 work revolution in the man
ner of conducting loose tobacco sales on
nine out of ten tobacco markets in Vir
ginia and the South. where sales are
rarely made by hogshead or package.
Revenue Agent Sinsel expects TO make the
trade of other markets acquainted with
the ruling through the medium Of the
revenue officers in the vicinity Of the re-
spective markets. No department circu-
lar it IS understood, will be issued en-
bodying the ruling, the circular of Febru-
airy Goth being regarded as sufficiently ex
plcit.