Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-11-28
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MARSHALL County Has Claims Against
Cigarst Dealers For Several
Thousand Dollara
Suits viii Probably Be Brought
Now That the Courts Say the
Tax Must Be Paid.
American Tobacco Company's Atti-
ds-No Cigar on Salem the
City ct Present

Litigation II probable in Marshall
county over the cigaret tax, now that
the supreme court has held that the sale
OF the .o-called coffin pails'' s Illegal
and that the late methods under which
they have been sold do not constitute
the original package.
When the tax law OF 5000 per year,
which was practically prohibitive, was.
adopted. the American Tobacco Com
pany sought to evade the intent of the
statute by making sales in original
packages under the section by which
liquors We're sold for a time in prohibi-
ton days.in original packages Gig
sarets We're shipped to the city done up
in no other package except the small
boxes in which they are retailed, the
express companies transporting them in
baskets and other receptacles. Repre-
sentatives Of local dealers and the
American Tobacco Company at that
time appeared before the board of SUI
pervisors and contended that the tax
should be RENTED under these circum-
stances. In this view the board did not
acquiesce. but the GALES were not stop
ped. A test case was brought against
G. p. Cook, but this has been continued
from time to time. awaiting the decision
OF the supreme court. In the meantime
no effort was made to collect the tax
from the local dealers, but record wac
kept of the amounts and the tax has
been charged up to those making sales
At the present time the cum charged
against the dealers amounts to between
$1,000 and $4,000. and the supreme court
having held that the sales are Illegal,
the county will take steps to collect the
amounts claimed to be due as taxes.
Since the court decision cigarets have
been Withdrawn from gale by the Mar
ehalltown dealers in this class of goods,
and can not be purchased at any price.
ICigaret papers, which are also prohibit
ed, can not be purchased, but can be
procured at certain places, the papers
being left lying about on the counters,
and those desiring them being privileged
to help themselves. probably with the
|expectation that they will purchase the
necessary tobacco with which to fill
them.
In November. two years ago. when
the American Tobacco Company in its,
test case secured decision to the effect
that the tax can not be made to hold
against dealers, selling in original pack
lagos, and which was recently reversed
| In a Tennessee case which was in every
respect similar to the Iowa case, ii UNI
dertook to indemnify all dealers who
would sell their cigarets It entered In
to contract with each dealer by which
Ut agreed to guarantee him against all
Ipenalties Of every character If he would
lsell it's cigarets. The contracts We're
made with practically every tobacconis,
in Iowa.
Now that the courts have decided that
sales in the small packages are Illegal
the question is being asked BY the deal.
lers, will the American Tobacco Com
spany comply with its contract and pay
the taxes assessed against us?n From
the actions of the company since the de-
cision was made it is believed that i,
will not, but will assume the position
Il that the contracts are invalid because
they are contrary to public policy. the
purpose in making them being to induce
persons to do an Illegal act. And If ths
company deserts the dealers some Of
them in Des Aoines and elsewhere pro.
pose to bring suit to recover the entire
amount paid on their orders for good.
4 since the contracts. We're made, under {
section similar to the mulct tax law.
/ rs 80