The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-26
The Treasury Department
Forbids Sale M Gig
arettes5 Exclusively.
MUST ALSO MAKE q
AT FIDAVIT NOW
Another Regulation Designed to
Prevent Evasion Of Taxes by
Trust Believed New
Orders Will Prove
Effective Against
Monopoly.
NJ WAITER EDWARD HARMS.

. By WALTE,Il EDWARD fHAHlfIS.ft
WASHINGTON. y. c.. July 25-The
revised regulations of the Treasury
Department. governing the sale Of to-
bacco. especially OF cigarettes will cree.
ate a sensation when they are made
public on tho first OF August. That
the new regulations will delive. stag
Eering blow to the tobacco trust ap--
pears certain.
The regulations will provide that
the manufacturer. when paying his tax
on cigarettes, shall make affidavit that
he .'has not entered into and will not
enter into any oral or written agree
fnent with any person or persons or
,1rns.. by which they will have excu-
sivs sale OF such cigarettes but that
they will sell to the trade generally.
Furthermore. collectors of internal
revenue. under the new regulations,
arc directed to see that such cigarettes
are not sold to any firm exclusively.
and that they are not sold at a price
in excess Of that given in by the Ian
ufacturer when the tax Is paid.
1t has been the practice OF the
trust to sell It's products only to those
retail dealers who would agree not.
to handle goods made by independent
manufacturers. This has not BEEN
the universal practice, but many deal
ers in various cities have testified
that they have been told by repre-
sentatives of the tobacco trust that
they would not get any trust goods
II they persisted in handling the pro-
ducts OF independent factories.
Puts End to Discrimination.
The order forbidding the sale Of
products under exclusive agreement
with any dealer will put an end TO
this practice, It Is thought. and 1t Is
also believed that the enforcement OF
the regulation Will mean n heavy blow
to the tobacco trust An official OF
the Treasury Department said to-day
that he regarded the new regulation
as likely to prove more effective in
curbing the trust than the suit in
stituted by the government for its
dissolution.
The trust, 1t is alleged, has aged
to evade payment OF thousands OF
dollars in taxes every Year through
quite a simple scheme. although its
application would not have been pos
Bibie without the complete organiza-
tion Of the trade by the trust.
The lax on cigarettes costing not
pver 50 a thousand is 81 cents. II the
cigarettes cost a penny over 81 a
Thousand, the tax is sl03. 1t Is
charged that the trust, when making
,ffidavit as to cost In order to pay the
tax before putting the cigarettes on
the market. has frequently given the
cost as being 50 q thousand. In order
TO evade punishment for selling IT A
greater price. 1t is charged that the
cigarettes would then be sold . a
trust agency, a subsidiary OF tne to-
bacco trust and the agency would sell
the cigarettes at SO a thousand. or as
much more as could be obtained
Advantage to Indep eudentx.
Il This was not only an evasion OF the
law, but It placed the independent
manufacturer at great disadvantage
since he was without the means OF
working the same game. having nc
subsidiary agency through which he
could sell.
The American Tobacco Company
commonly called the tobacco trust,4gls
founded chiefly on the cigarette trade
OF the total Of 6,S2s.o00.O00 cigarettes
made in this country in 1906. 4,aoo.-
100000, orover two thirds of the en-.
tire output, were made BY the trust
The new regulations will be issued
on the first day Of August. Theil
preparation has consumed great dea,
Of time. They are far more compile,
than any which have preceded them,