The Washington herald., 1909-05-15

the treasury OF the American Tobacco
Company, which is known as, and In fact
is. the tobacco trust. perhaps the most
compact and effective private monopoly
in existence.
Restores Old Tax.
This amendment simply restores the
tax which the tobacco trust formerly col
lected from the people and paid TO the
government. and which. BY authority OF
Congress. unintentionally given, OF
course. It stlH collects from the people,
bur keeps for itself Either Congress
should compel the trust 70 sell nothing
but the larger packages OF tobacco sold
before 1903, when the size was reduced
and the tax increased; or. else Congress
ought 10 restore the tax. 70 enable the
manufacturers to pay which the size was
reduced.
Why should the trust be authorized
stiu TO sell the short-weight packages,
and vet be relieved Of the tax TO collect
which these short-weight packages were
provided? Why should the trust be per
mitted still 10 collect the tax from the
people and put it in the trusts treasury.
TO swell the trusts profits, instead Of
putting Il IN the governments Treasury.
% swell the governments revenues2
II wish 70 point out that this amend
ment does not affect the cigar makers OF
the country. L does not increase the tax
on any cigars except those which sell for
10 cents Cor three for a quarter) or over
wish this positive statement 70 be
clearly understood, so thas the tens OF
thousands OF cigar makers IN the thou
sands OF little independent factories all
over the country may understand that no
burden whatever IS laid upon them do
this because know the desperate fight
which the tobacco trust. known as the
American Tobacco COMPANY VIII make
upon this amendment
within FIVE hours from the time this
amendment IS printed II the newspapers
the ablest men employed by the tobacco
trust to watch legislation affecting It viii
he IN Washington and remain here until
this amendment is voted upon. I am not
sure that they are not here now And
within twenty-four hours from the time
this amendment is published in the news
papers agents Of the American Tobacco
Company VIII be az work among the
a. aaalEsFa0 fAal NhNt NaA" NN--tfAa "a AAt7
to persuade them that this amendment
will bear heavily upon them and attempt
ing 10 friEhten them into besiegiag Con-
gress with petitions and resolutions
against f. Therefore. I want now. in the
most emphatic way. 10 reassuTe the cigar
makers OF the country.
Not Affected by Amendment.
At the very beginning Of this discus
sion I want them 70 understand that
they ere not affected by this amendment
in any manner. shape. or form. directly
c- indirectly. and they ought not 10 be.
The manufacture OF cigars. especially
those selling for less than % cents. Is the
only part OF the tobacco business in which
the trust has not gotten control Of the
greater part. The manufacture OF cigars
selling for less than % cents is the only
portion OF the vast tobacco industry OF
the country which yet remains free and
independent. And the present tax upon
cigars selling for less than - cents is
large enough for times Of peace, and this
amendment does not Increase L.
Approximately 81. .000600 OF the S25,-
SSe, ,I1l.55 revenue on the four classes OF
tobacco products controlled by the trust
which the government lost last year went
into the treasury OF the trust; and prscti-
csliy the same proportion IS true OF the
So, ,I74So 0S which the government lost in
I907. the S2s69 127-S which the govern
ment lost IN 1906, the SO 073. g which
the government lost IN 1915. the s22.570,
% 10 which the government lost in 1904,
the 81, SIS, 2.S5 which the government lost
In 1853 and the S SIS. 79655 which the gov
ernmenJ lost IN 1902 IN these figures
have excluded cigars, OF which the trust
makes about one-sixth.
SO that az least $40 0o0.U00 which the
government would have received since
1901 Il tie tax had not been removed has
gone into the treasury Of the tobacco
trust Il could not have gone any place
else Il has been collected from the peo-
pie who have been chargJ- the same price
for short-weight packages that they
were charged before the tax was removed:
1t has not been paid 20 the government
since the tax was removed. so that Il
could have gone nc place but into the
treasury Of the tobacco trust A small
Per cent Of il. Of course, has gone to swell
the profits OF the few remaining inde-
pendent manufacturers OF tobacco, who
now exist only because the American To-
bacco Company thinks il wise policy 10
let them exist: but this per cent IS very
little. as is shown by the statement OF
the per cent OF output which the trust
now controls
Organized in 1890.
The American Tobacco Company was
organized in 1890. with a capitalization Of
$3.50 00.0Oo. and only 100000 OF tangible
assets. At this time IT'S sole business was
that Of manufacturing and selling cigar
cites. OF which It even then had the mo-
ncpoly. So great were its profits upon
this branch OF the tobacco industry that
Il determined to take IN all other branches
OF the industry. It began with the plug
and smoking tobacco business. then ex-
tended its operation TO the snuff bust
ness. and. finally. even entered the field
OF the cigar business.
BY cutting prices so as to compel COM
petitors 20 sell to it or enter the new COM
binations which 1t from time to time
organized, II has AT the present time
secured control OF more than s. per cent
Of the entire output Of chewing tobacco
OF the country. more than Il per cent Of
the smoking tobacco output Of the coun-
try. more than 81 per cent Of the cigar
cite output Of the country, and more than
IS Der cent Of the snuff output OF the
The tobacco trust has absorbed about /
80 separate concerns and smaller com
binations Nor was it content with this. |
Since 1899 the combination has secured
the control OF many concerns for whole
sale and retail distribution Of tobacco |
products; CT several concerns that produce |
leaf tobacco In Cuba and Porto Rico;
Of others (which make materials and
packages used In manufacturing tobacco |
o. still others holding patents for the
Of tobacco machinery; Of
others making tobacco machines; and Of
others that take care Of by-products. |