Evening star., 1900-04-17
Repeal Of Stamp Tax on Proprietary
Articles Wanted.
OF TIE Law SURPRISED
The Sums Raised Far Exceeded
the Estimates.
MR.. BOUTELL'S STATEMENT

/
hearing today on the question of reducing
the revenues derived from proprietary med
| icines, etc, under the war revenue act of
| 1898. Those heard today represented the
| drug interests, who asked the repeal OF
| schedule of the war revenue act, requir-
| ing a stamp tax upon proprietary articles
| and preparations, perfumeries, cosmetics,
| etc.
| The drug delegation was large, including
| leading representatives of many state phar-
| maceutical associations and members of the
| National Association of Retail Druggists.
Thomas V. Wooten, national secretary,
| spoke Of what he termed the discrimi-
nation and injustice of this tax and its un-
necessary character, in view Of the surplus.
George P Englehard of Chicago, president
| Of the Drug Association of that city, stated
| that under the rulings of the revenue bu-
reau the act was not restricted to patent
medicines, as originally designed but to all
| medicines save those issued under a physi-
clans certificate. Why not, he asked, sim
ilarly tax food and clothing. as this was
distinctly class legislation. The only me-
dicinal preparations receiving exemption
he stated, We're the vast and increasing pro-
ouct Oh foreign uncompounded chemicals,
mainly from Germany thus violating the
principles of protection to American in
dustry.
Tax on Foreign Product.
Representative Grosvenor questioned this
statement, pointing out that if the foreign
remedies paid no internal revenue tax they
paid heavy customs duty, six or eight
times greater than the internal tax on do
mestic products.
chairman Payne also brought out that
such American products as were similar TO
the German would have a like exemntton
from the internal tax. although Mr. Engle-
these. iioAe "a
Mr Grosvenor said he was SURPRISED To
learn that such common drugs as arn,ca
ana paregoric were taxed as patent medi-
clnes;' that 1t had never been the intentton
Q. .he trainers OF the law to have 1t SO con-
courts. 'h 'iie
Mr.: Hirzman Of the New York Pharma-
ceutlcal Association said the drug trade
aan aanrougnout New York was being greatly
depressed by department stores" which,
Ior advertising purposes sold patent medi-
clnes at less than cost, and some of them
tra We're now p,l, putting in regular prescription
reason for relieving the regular trade from
the present tax burden
Taxing Bandages.
Charles Clark spoke for the manufac-
turers. He said some of those present paid
$4,000 and $4,000 annually. Much of the
tax was on variety Of articles designed
Tor suffering humanity. Many of the band
ages which saved the lives of our soldiers
had to bear revenue stamps. With an $50
coo,OO0 surplus, the course of the govern
ment in taking $4,000 from a manufac-
turer and storing it away in the treasury
amounted to confiscation, and Mr.. Clark
protested against such action
Mr. Grosvenor said this was based on the
assumption that present conditions would
last, but he asked what guaranty there was
for continuance Of the present condi-
tiCns.
Mr.. Clark replied that doubtless means
could always be found to do away with a
surplus, but he said 1t was the official estf-
mate OF the head Of the treasury that this
large surplus would exist next year,
Mr.. Clark added that it would be a serious
1t was collecting excess of taxation of
about ninety millions a year.
Other Interests Affected,
Several of the members of the committee
suggested that IL this surplus was cut down
other interests, particularly the beer inter-
est, would ask that they share in the re-
duction.
Mr.. Payne further stated that the in
act was about $1O2, 900 900, so that If the
act was wiped out there would he a CON
siderable deficiency
Representative Boutell of Illinois stated
that the enormous sums raised under the
act were a surprise to it's trainers as thew
much exceeded the estimates He said that
the surplus imposed duty on the present
Congress to reduce the tax burden at the
earliest moment. The reduction should be
maze at the points of greatest friction,
ana schedule b he regarded as one of the
first articles Of repeal. Mr.. Boutelrs state
ment was enthusiastically applauded This
closed the hearing and the committee adj
journed