Evening star., 1909-05-14
WAR TAX COLLECTED
Beveridge Says the Money
Goes to Tobacco Trust.
SH0RT-WEIGHT PACKAGES
Estimates Consumers Have Paid
$1s4,090,557.43.
GOVERNMENT HAS LOST THIS
Would Raise by Increased Internal
Revenue Rates on Snuff and
Tobacco.
|SH0RT-WEIGHT PACKAGES
GOVERNMENT HAS LOST THIS

Senator Beveridge OF Indiana today
called the attention Of the Senate to the
fact that although the 1898 war tax on
tobacco was removed in the winter OF
19O1-O2. the permission to sell short
weight packages was not withdrawn
from the tobacco manufacturers.
He made tho following startling state
ment. based upon a report Of the COM
missioner Of internal revenue:
''The manufacturer still collects the
wartime tax from the people. but in
stead Of paying it to the government he
keeps 1t for himself"
Tax Paid to Manufacturers.
All told. Mr. Beveridge said the gov
ernment has lost s4.O90. .557.43 in the
last eight years. and he said most Of
| this has gone into the pockets Of the to-
| bacco trust.
To correct this evil. which. he said.
Congress was "unwittingly' responsible
for. Mr.. Beveridge presented an amend
ment to the Payne-Aldrich tariff bill to
| increase the internal revenue tax on to-
bacco.
Furthermore, he said, the tobacco busi-
ness Of the United States is practically
| in the hands Of the American Tobacco
Company, which, he said, was undeniably
a trust. and probably the most perfectly
| organized and monopolistic OF any Of the
great combinations Of capital in this
country.
.sWhy," asked Mr.. Beveridge, "should
the trust be authorized to still sell the
short-weight packages. and yet be re-
| lieved OF the tax to collect which these
short-weight packages were provided?
Why should the trust be permitted to
still collect the tax from the people and
put 1t in the trusts treasury, to swell the
10 tn
the governments treasury. to swell the
governments revenues"
No Effect on Cigarmakers.
He pointed out at this point that his
amendment would not affect the cigar
makers of the country as a whole. as it
would not increase the tax on cigars ex-
cept those selling for over 10 cents each.
Still, he said:
within five hours from the time this
amendment Is printed In the newspapers
the ablest men employed by the tobacco
trust to watch legislation affecting 1t will
be In Washington and remain here until
this amendment Is voted down. I am not
sure that they are not here now. And with
in twentyfour hours from the time this
amendment is published in the newspa-
pers agents of the American Tobacco
Company will be at work among the ci-
garmakers all over the country trying to
persuade them that this amendment will
bear heavily upon them and attempting
| to frighten them into besieging Congress
with petitions and resolutions against it.
Therefore l want now, In the most en-
phatic way, to reassure the cigarmakers
of the country"
Proposed Increased Tax.
Mr.. Beveridge's amendment increases
| the present tax of 6 cents a pound on
snuff to II cents pound. On smoking
and chewing tobacco the rate is in
| creased from cents a pound to 8
| cents. On cigarettes the proposed rate
1 is $1.50 a thousand on those selling at
Wholesale from So to 81 per thousand.
sand the tax proposed is So per thou
| sand, and on cigarettes selling at over
| $8 a thousand the tax Is increased from
$10S to $3.50 per thousand. On cigar
cites selling under 81 per thousand the
present tax is 54 cents per thousand, and
the war rate Of $50 per thousand Is re-
stored.
A gradual. scale is proposed for the
| tax on cigars. For those retailing at
\ three for 25 cents or 10 cents straight
/ the amendment increases the tax from
SO thousand to $3.50 a thousand; upon
| those selling for from two for 20 cents
| to Is cents straight 1t increases the tax
from So to $6 thousand. and upon
those retailing at 20 cents and more 1t
| increases the tax from SO to 50 a thou
sand.
/
crease the revenues to the extent of over
s21 100000 Mr.. Beveridge asserted that
the tobacco trust is now reaping vast
/ benefit through failure to enact such
legislation as he proposed.
The Short Weight.
Mr.. Beveridge opposed the contention
that the continuation by law Of the short
weight, wartime package after the war
tax had been removed did not affect the
plug tobacco business. "The law he said.
| does not fix the size of the cut that is
| sold but the manufacturer OF plug to-
| bacco got the war tax on this article out
of the people. by selling smaller cut
| than the plug, and this practice still
continues. When box of plug tobacco
is sold by the trust to the retail dealer,
| there is marked upon each plug place
| for the cut. BY decreasing the size of
these cuts very slightly the tobacco trust.
price for cut from plug OF tobacco
| by marking the cut a Lite smaller. So
i by taking off from cut of plug tobacco
| a single chew of il the tobacco trust
was able to collect the tax which the
government placed upon this tobacco and
pay il to the government before the tax
was removed and by selling the same
size cut it is still able TO collect the tax
which the government has removed, and
| instead of paying IL TO the government, II
pays il to itself.
Closing. he said: Thus it is that the
trust has been able to collect the war
tax from the people. and instead of pay
| ing it to the government has paid it to
! itself: and thus. too. it Is that the to-
bacco trust has been able by govern
ment aid, which Congress did not intend
| TO give to so swell its astonishing profits
| that it has grown in a few brief years
to. be the mighty organization It is to-
day"
Il