Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1905-04-20
TAX ON TOBACCO.
Letter of Congressman Stan
ley on the Subject.

lucky. to Senator VIM. B. Allison, ol
the tobacco tax, is of interest in tn,
Tennessee and Kentucky tobacco dis
tricts:
Feb. "a. 1905 Hon. William B
Allison. United States Senate -Deal
Sir take pleasure in submitting
the following in reply to your in
curry, made some days since, as t.
the extent the revenue of the Gov
eminent would be affected by the
bill introduced by Mr. Dalzell foi
the relief Of the tobacco growers
and being considered by your com
mittee in the Senate.
AS / understand there are only
two possible objections which can
be urged to this bill:
First, that the unrestricted sale of
tobacco in the leaf will render it
more difficult to collect the tax now
imposed upon the manufacture of
tobacco, on account of the inability
of the Government to keep tab on
the small quantities of leaf tobacco
sold without the imposition of tax.
Second, that the sale of this I'M
taxed leaf may materially decrease
the revenues of the Government by
supplanting the taxed article on the
market.
Both of the objections were urged
to this bill when it was considered
by the Ways and Means Committee
and in the House, and were the sub
-ject of exhaustive inquiry and dis
.cussion. (See hearings before sub
committee on internal revenue of
the Committee on Ways and Means,
Fifty-eighth Congress, second ses-
sion.
AS to the first objection, that the
Government cannot keep track of
the tobacco sold without the impo-
sition of this tax, and that it may
subsequently be manufactured free
e ofotEEty, the practical experience of
this Government from the time the
first tax was imposed until the pas
sage Of the Wilson bill clearly dem
>Onstrates that no such results are
possible. Under the Mckinley act
there was no tax on tobacco in natu-
raj leaf, and yet the Government
had no difficulty in collecting this
revenue or preventing this tobacco
from being manufactured or sold |
free of duty.
The manufacturers of tobacco,
especially since this business has
gone into the hands of very large |
firms, buy the particular kind of
tobacco which they need in large
quantities, many hogsheads at a
time. This tobacco is secured either
through their warehouses located in
the large cities, or OH the brakes,
as they are called; that is in the
large warehouses, where hundreds
of hogsheads of tobacco are shipped
by the growers, and from which the
agent of the manufacturer selects
the leaf required for his particular
brand of trade.
Leaving out of consideration the
danger and odium incident to an eff
fort to defraud this Government of
6 cents a pound, these great concerns
would be losing business by run
ming over the country, picking up
ten pounds of tobacco here and a
hundred pounds there. In addition,
tobacco, to be manufactured, must
be "bulked," as it is called; that is,
put in pliable state until it can be
handled without loss or damage.
Tobacco sold for immediate con-
sumption by retailers is never in
this state.
1t will be remembered that this
tax is placed upon the finished pro-
duct. The manufacturer cannot
sell without placing upon the box or
package containing it Government
stamp, showing the weight and char
acter of the contents of the package.
The retailer cannot purchase or sell
this tobacco unless it bears this
stamp. This is a complete and per-
feet check upon the manufactures.
1t is a matter of no Importance to
the Government where the manu-
facturer gets his tobacco; he may
buy it or he may steal it, for that
matter. The only concern of the
Revenue Department is that he
should pay cents a pound upon