Evening star., 1901-09-09

Statistics Showing Its RemarkabI
Mutations During Twenty Years.
From Tobacco

Staf1stfcs Showing Its Remark abl q
Mutations During Twenty Years.
From Tobacco.
We begin our review with the year that
closed June 30. 1881. twenty years ago.
At that time the cigarette was not known
outside OF a few of the larger cities. The
indust-. vas in its infancy, for the product,
made UP by the tedious and expensive
hand process, had at that date reached the
insignificant total of 503. .S73,7S3, and while
there were several manufacturers In the
heid, none OF these had come into proni-
nence or taken commanding place in
the trade. A factor which probably played
an important part In keeping the manu-
tacture or cigarettes within narrow bOun-
darleS was the tax of $1.T5 per thousand
though the price at which the goods were
then sold was much higher than at q later
date, and certainly high enough to afford
good profit to the manufacturer. jobber
and retailer. Still, the growth of business
was small. comparatively speaking, though
Il was steady from year to year.
WITHIN two or three years vast change
came over the industry. The internal
revenue tax ON cigarettes was reduced
May 1. 1888. to 80 cents per thousand, but
at the close of that fiscal year On June 80
the production figures indicate only co.,
III. $40 made and withdrawn for consump-
tion But what then occurs? During the
next twelve months the total tax paid
product was pushed up to 90S, go 72, or
In other words, 80 per cent increase was
added to the production of the previous
year. and from that time forward for fifteen
years there was no check to the ever in
creasing consumption of paper-wrapped
cigarettes until the duh times of 1893 tenn
porariy disturbed the advance movement
From the year 1885, competition, which
had hitherto been more or less friendly,
Desan 10 grow more aggressive. From
1sS5 to 1880 over 235, 900 900 cigarettes were
annually added to the number made and
consumed With the tax still at 80 cents
per thousand. q production of 2233 254 $50
Is recorded Tor the fiscal year 1880. The
fierce storm of competition soon to break
loose was not then anticipated.
by 1S9S one company was in the field,
and shortly after that date several of the
ieaung TOBACCO manufacturers were max
ing preparations to preserve their business
intact by introducing cigarettes In enor-
nous quantities and at or below cost. This
campaign was purely retaIiatory in its
nature. ana the statistics Of production
show how intensely bitter the fight was,
for over 1.00O, Geo. 600 was added to the tax
paid product In less than four years. The
low tax rate made the 25-cent packages
possible. p u
The campaign of retaliation which went
on between 1894 ands 1897 produced mark
ed results. 1t cut big holes In the profits
or the manufacturers and 7sent the statis-
Tics OK production up to the 4,153. .252 40
mark TN the year last mentioned. The pub
ic conscience was 50 aroused that the ses-
Aons OF every state legislature found will
ing advocates OF anti-eigarette laws. Some
kind Of measure for the repression of
the sale and use OF cigarettes had been
passed In every state of the Union. we be-
heVe. yet so long as the tax remained at 20
cents per thousand these laws were OF lit
tie effect In curtailing productions
Within the next year competition was
somewhat l4ssened. but the increase of the
tax from 90 cents to 81 per thousand has
much more to do with checking further
growth than all other factors combined.
The increase took effect July "a, 1897, and
with 1t a new classification Separating the
paper-covered cigarette from the all-tebao-
CO variety and calling the latter little ci-
gars.
Within the last three years 1, 476, 6,6o9, ,09S
cigarettes have been clipped from the
record, and the repressive laws and ordi-
nances are scarcely more stringent than
they were In 1885,. This means either that
an equivalent OF at least 200 600 smokers
nave ceased to use paper cigarettes or
larger number are more moderate In their
use,