The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-07-05
MANUFACTURERS WILL
Be HEARD THIS MORNING
The Administration Appears to Be
Back of the Proposed Advance,
Though Senators viii Not
Discuss This Feature.

Washington July 4.-Proposed in
creases in the national taxes on all
forms of manufactured tobacco have
brought veritable hornets nest about
the heads of the Senate committee on
finance.
Protests are pouring in by wire and
demands for hearings are coming from
every section of the country. The COM
mittee decided today that it would have
to harken to the demands, and al
though an amendment fixing the rates
of increases had been prepared for in
PRODUCTION in the Senate on Tuesday,
word has been sent out telling the to-
bacco manufacturers that they will be
given a hearing before the sub-com-
mittee at Il o'clock tomorrow.
Tobacco manufacturers, including
hundreds of independents. say they
were given no notice of the proposed
increase of rates The Beveridge
amendment was introduced several
weeks ago. but it had not been taken
up by the committee and was regarded
as one of the many insurgent' propo-
sitions and therefore not given serious
consideration. 1t was not until last
Friday that 1t became known an in
crease in the internal tax on tobacco
might be recommended. Efforts were
begun to learn what force was behind
the proposition. Representatives of the
tobacco interests said today that they
were surprised to learn that the force
is none other than President Taft.
That the tobacco men are right in
their conjecture that the President
favors an increase in the tobacco taxes
seems to be borne out by the fact that
Director E. Dana Durand of the census
bureau, formerly assistant commissioner
Interpretations. has been in individual
a 'nversation with members of the sub
committee of the finance committee.
who are considering various tobacco
amendments. These meetings took
place after a conference between the
President and Mr.. Durand.
The Investigation through the bu-
reau of corporations of all phases of
the tobacco question. which resulted
in a Sensational report, dealing with
the ability of the tobacco trust to con-
troll prices. was conducted by Mr.
Durand.
Members of the finance committee
were asked today whether it was true
that the President had advocated the
advance in tobacco rates. They de-
clined to discuss the question for pub
lication, but tn cir demeanor would seem
to Justify the inference that the ad-
ministration is back of the proposed
increase An estimate of the increased
revenues which would be produced by
the increases in tobacco taxes as pro-
posed by the Beveridge amendment was
received by the Senate committee to-
day from the internal revenue commits
sion If no decrease in consumption is
occasioned by the proposed increase
the Beveridge amendment would raise
about $40 900 900 in excess of the
amount now collected. This amount
is said to be greater than the admin
istration desires to draw from the to-
bacco industry and it is likely, there
fore, that the rates proposed may be
lowered, especially that on cigars. The
tax may then be expected to produce
from $12,000.000 to $15,000,000 in ex-
cess fthe present revenues from to-
baccO.