Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1909-06-29
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THE TOBACCO MONOPOLY.
Senator Albert J. Beveridse Attack
Vicious Combine.

THE TOBACCO MONOPOLY.
Senator Albert J. Beveridse Attacks
Vicious Combine.
Senator Albert ]. Beveridge Of In
diana, delivered a speech in the senate
last Friday on the tobacco schedule.
He said in part:
1.-THE ruling note Of this debate has
been the need Of revenue. This tobac-
co amendment will give the govern
ment more than s21.000,O00 Of revenue
and also correct wrong which the
people and loss which the govern
ment has suffered for eight years.
When the tariff bill came from the
house to the senate 1t increased the
tax on cigarettes-a poor, miserable
increase. Yet the finance committee
Of the senate actually has struck out
this little increase on cigarettes.
"The American tax on tobacco Is
only a fraction Of that Of most other
civilized nations. For example, our
tax on most tobacco is 6 cents a
pound; but If you take our tariff on
the quantity imported and our tax on
cigarettes, the total average Of our tax
on tobacco Is Is cents per pound. Bu
the United Kingdom taxes tobacco rs
cents per pound; France taxes tobacco
76 cents per pound; Italy taxes tobac-
co 81 cents per pound; Austria Hun
gary taxes tobacco 80 cents per pound,
etc. France, Italy and Austria Hun
gary have government monopolies OF
tobacco and their tax is estimated on
the government profits, which amounts
to the same thing as tax.
$50 that while our population and
consumption are greater than any OF
these countries, our revenue from to-
bacco is less than any Of these coun-
tries. They have fewer people and
these people consume less tobacco;
and yet their revenues from tobacco
are double and even treble ours. To
be specific, our present revenue from
all forms of tobacco Is .$49,S62,754.26
whereas that Of the United Kingdom,
with only half the population, consum-
ing only e-third as much tobacco
per capita as we consume, Is nearly
$65, 100000; France, with less than half
of our population, consuming less than
one-half Of the tobacco we consume
per capita, is $74,475,7ss; Italy, with
only one-third of our population, con-
suming less than one-fifth the tobacco
we consume per capita, Is $35,300,993;
Austria Hungary, with one-haf of our
population, consuming less than one
half the tobacco per capita that we
consume, is $47,346,502. The United
States, with ninety millions Of people,
consuming from two to five times as
much tobacco. per capita as these
countries, nevertheless derives from
that source of taxation less than $780,
900, Of revenue.
If we taxed tobacco at the same rate
as England or France, We would every
year derive $685., 6,666.62, instead Of
less than $5O,00O,O00 we now. derive.
II We taxed tobacco at the same rate
the Italians tax theirs, we would every
year derive $Sss, 6,666.s1, instead Of
less than $50,000,00O We now derive.
II we taxed tof)accU at tife same rate
the Austro- -Hungarians tax theirs, we
would every year derive $3.50, ,746,666.62.
instead of less than $50,000,000 we now
derive"
Mr.. Beveridge then sketched the his
tory of the American Tobacco compa-
ny from its organization in 1890, with
tangible assets amounting to S5,00O,-
600, capitalized at $25,000,0o0." He
told of the various tobacco combina-
tions leading up to the organization
of the Consolidated Tobacco company
In 1901. He continued.
1.-THE Consolidated Tobacco company
was in reality holding company much
like the Northern Securities company.
On April 8, 1904, the supreme court OF
the United States held such a company
illegal; and therefore, in October, 1904,
the Consolidated, the American and the
Continental tobacco companies were
all merged into one company called the
American Tobacco company-an en-
tirely new corporation. This new
American Tobacco company gave Its
securities in exchange for the securi-
ties of the Consolidated, Continental
and old American tobacco companies
which were then held outside Of these
three companies themselves. By a pro-
cess of cancellation Of intercompany
holdings, exchange Of securities, etc.,
the new American Tobacco company
was capitalized in October, 1904, at
s247, ,292, 100, much of which was water.
In a word the old American Tobacco
company had grown in a few years
from a capitalization Of 100000 in
to the new American Tobacco compa-
ny, with a capitalization Of almost
$3.50, 100000; and II We include the
numerous. corporations in which 1t
bought a control Of the stock, and 9TH
er corporations which it formed, the
entire net capitalization of the trust
amounts to about $317,000,000.
THUS, safe from the law, the tobac-
CO trust pursued its career Of absorp-
ton Of rival concerns toward its goal
Of monopoly. UP to the present time
it has acquired more than two hun
dred and fifty separate concerns and
combinations. Where necessary, 1t
has undersold competitors, bought up
patents, used the coupon or lottery
system-done everything its managers
could invent. 1t has entered every
branch Of the business, and excepting
only cigars, has larger monopolistic
power than any busines concern In the
nation excepting the Standard OIL
company.
mot only has the tobacco trust Sc
cured this vast monopolistic power,
but in doing so 1t has stopped at no
means, whether legitimate or illegiti-
mate. For example, 1t has purchased
many Independent concerns and kept
their purchase secret as long as possi-
BILE, using such concerns to wage still