Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-11-28
A TAX ON TRAVELLERS.
Those of Commercial! Bent Are Made
to Pay on Entering Sweden.

to Pay on Entering Sweden.
| Affaersvaerlden, a Swedish CONNER
cial paper, says that for some years
Sweden has had a law under which
| foreign commercial travellers soliciting
orders have to pay tax of $3.50 for
every period of thirty days of their So
! jOurn in Sweden. Foreigners, particu-
| larly Germans, who furnish the largest
| percentage of the said commercial
| travellers, are very much dissatisfied
with this regulation, while a very bitter
| feeling has developed among q large
number Of Swedish manufacturers,
who think the tax is to small. This
feeling is due to the competition caused
| by these foreign commercial travellers.
The profits accruing to German manu-
facturers from wares sold in this way
escape every Swedish tax, hence. as
some Swedish manufacturers say, 'it
| is hardly strange that the Germans
! have been able to drive us from the
| field for their work at enormously less
cost"
This way of talking is naturally only
apparently justified. The German-in
fact, each foreign manufacturer pays,
each in his own country, taxes on prof
its; and if these are less than in Swe-
den the industry Of the particular coun-
try is more competent to compete
Any payment made by foreign COM
merclal travellers. or any tax on such
business, is n direct protective tariff
favoring Swedish industries, and must
be treated as such. The Germans have
called attention to these payments in
connection with trade treaties. and an
increase or decrease will surely have
an effect upon the negotiations carried
on concerning these trade treaties.
Some of the more important German
manufacturers favor payment of the
tax, but for other reasons. Such a tax.
because OF its size, can be paid only by
concerns operating with large amounts
OF capital, and by firms which make
large sales. Small concerns are thus
hilldered from selling goods direct
through their commercial travellers to
the Swedish retail dealers, and thus
often perhaps. hindered from doing an
unhealthy trade.
The Swedish manufacturers have an
Interest in this matter. Another cir
cumstance speaks in favor of keeping
vi increasing the tax. Some German,
nrms which have established agents
or pranch offices in Sweden, on account
OF the importance of their business
nave had to pay the full incoem tax Oh
Their profits and now find themselves
compelled to grasp the cheaper method
OF doing business by means of CONNER
clal travellers. That part of the Ger
man trade that went formerly through
the hands of Swedish merchants or
agents will now go from ten German
factory through the hands of CONNER
c1al travellers. If the tax is increased
the number of the established agents
OF German firms in Sweden will in
crease considerably. and part Of the
business profits will thus be trans
ferred to Sweden.
Still, these circumstances arc of
small importance either for or against
the tax. There is no reason WHY for
elgn commercial travellers should nav
a tax and native commercial travellers
none. 1t is justifiable only on protec.
tive tariff grounds. Looked at as pro-
lection, the manner of collecting is too
superficial and the industries that are
particularly dangerous to Sweden ars
which Swedish manufacturers are in
different would be seriously affected.
because the tax is the same on agents
Tor all wares and is not regulated b>
the amount of goods sold The best
reason for favoring a small tax is to be
found in the fact that citizens of for
elgn countries would be excluded as
much as possible from lines of trade
that could be as successfully carried on
by SWedeS. 1t is to the nations
(Swedens) interest to nave the wages
and taxes paid on work done in Swe-
den remain in Sweden.
Commenting on this subject, the
Deutsche ExpOrt-Revue, a leading
German paper, in its issue of June Is,
says that if the foregoing reflects the
real opinion of the commercial circles
IN Sweden concerning the present tax
on foreign commercial travellers, it is to
be hoped that the Swedish Government
VIII soon vote for it's adjustment. On
the part of the Germans, considerable
weight vii! be laid upon its repeal.
mat there are, however, some large
German houses which on account Of
competition would gladly see the tax
retained, is possible