The Washington herald., 1909-05-15

Senator Beveridge. OF Indiana, who has
recently become a full-hedged insurgent'
made & speech IN the Senate yesterday
cri1icising the tobacco schedules Of the
pending tariff bill Most OF his speech
was intended to show that the eonsum-
ers Of tobacco row get a smaller amount
for the same price than they formerly re-
ceived
The manufacturer" he said. still col
iects the wartime tax from the people,
but instead Of paying it to the govern
ment, he keeps il himself"
Senator BeveTidge continued:
'Mr- President from the beginning OF
this discussion the question has been
sharply raised whether the present act
VIII bring in enough revenue This amend
msnt partly answers that question. for ii
eril bring In al least 81. IS. .95462 more
revenue each year than we now are get
ting OF than the present bill will pro-
duce- But this amendment does more
than provide this needed revenue: il cor
rects an injustice 10 the American people
which has lasted for nearly eight years.
We cannot undo the wrong that has been
gone during these years. but we can stop
II in the future.
Tax Raised in 1895.
IN 1855 the tax or all forms Of tobacco
was raised in order to supply the gov
ernment with a needed Increase in revs-
nue.. But at the ;irne Congress put this
increased tax on tobacco. it authorized
tobacco manufacturers 10 reduce the size
Of the packages In which the tobacco was
sold 70 the people.
This enabled the manufacturer TO col
lecJ the tax from the consumer. Congress
mace the manufacturer pay a bigger tax
but permitted the manufacturer TO sell
a smaller amount Of toDacco for the same
price formerly paid for a larger amount
OF tobacco.
In Is0I-02 this increased tobacco tax
was removed. but the short-weight pack
ages OF tobacco were continued by the
very law that removed the tax Nor did
the manufacturers restore the larger
packages Of tobacco after the tax had
been removed; neither did they reduce
the price. Therefore. for seven years the
people have been compelled 70 pay the
same price for these smaller packages
which Congress authorized in 1885. while
he manufacturer has been relieved from
the increased tax which these short
weight packages enabled him 10 collect
from the people
stiT Collects War Tax.
The manufacturer still collects the
wartime tax frcm the people. but instead
Of paying It 70 the government he keeps
Il for himself
IN this way the government has
handed over TO tobacco manufacturers
and lost 70 itself 81, ,s97. .sss.s7 in 1872. s2s.-
S.. .s7.1 in 1893, S26.g5.Z7o.sS in 1904. 81
524 81 4s in 1906. 81 sS o0ss7 IN 1906, $s1 IsS-
SIP IN 1907. and Sc. "A. .2ssss in 1905. All
told. the government has lost $ls4 0a0. .557. g
in the last eight years. Most Of this has
come out Of the pockets OF the people and
gone into the pockets OF the manufac-
tuTer.
Although the war tax has been re-
moved. YET the tobacco manufacturer has
still continued 20 collect II from the peo-
P4C- SS~o-SS' Ds aAL4tO44tS oA OOASit tS7i
Re has still sold the wartime short
weight package fer the same price: so
that Congress, unwittingly. has author
ICED the transfer Of this tax from the
Treasury OF the government to the treas
Try Of the tobacco trust
1t was because OF the development OF
the tobacco trust. which has so nearly
uonopolized the business. that this situa-
ton exists; for this trust was organized
in its present wide-reaching scope just
wren the tax was raised and the size Of
packages redUced-before this there was
competition. except IN cigarettes.
I use the words tobacco trust advis-
edly. for IL is a fact capable Of mathe-
maticaI demonstration that the bulk Of
this tax-except on cigars-has gone into