The Birmingham age-herald., 1909-01-12
COFFEE CONSUMERS
 MUST PAY BIG TAX Local Man Comments on Wall
 Street Scheme RAISE PRICE FIVE CENTS Country Can Be swamped With Bra gillian Coffee in 30 Days, But
 Price Will Go Soar ing.
RAISE PRICE FIVE CENTS

There have been schemes worked
 through Congress which resulted in the poor man being taxed and there have been others which caused the rich man
 to dig into his treasury, said l.. F.
 Kleybecker, local manager of the Great Atlantic and Pacific Tea company, yester- day but to all appearances a proposi- ton before the ways and means commit
 tee of Congress if carried to a suc- cessful conclusion promises to make the rich man and poor man dig up alike in contributing about $77,0coOOO to a hand ful of Wall street brokers and Brazil
 ian coffee growers.
 "The proposition in question is the ef- fort to place tax of 5 cents per pound on coffee imported into the United States.
 bill to this effect has almost been slipped through Congress but observant eyes noticed 1t and little close investi-
 schemes ever attempted to be worked
 through Congress.
 "Under this scheme the American pub l lie would be forced to pay this additional l tax, while the government would not re- ceive 1 cent of revenue from 1t for over
 year. It is claimed that in the state of Sac Paulo, Brazil, there are stored Il, TOOL ,OOO bags of coffee. each bag contain ing 132 pounds of coffee, which could be
 shipped into this country within three
 weeks. As the import tax could not be levied until 30 days after it had been passed the government would not receive 1 cent of revenue from this shipment. With the passing of the act coffee will i immediately increase in price, the con
 sumner being compelled to pay the addi- tional cents While the 11,700,000 bags
 would be brought in without the tax the price on it would be raised and the syndicate owning it would reap the ben | eft of this extra cents per pound, which within the course of year would amount to over $75,OO0OOO.
 | "In 1901 this state of Sac Paulo pro- duced an enormous crop, which resulted | in a demoralization of prices. In 1906 it appeared that this condition would be repeated and then it was that a valoriza- tion scheme was fixed upon. This was
 the buying up and storing of a tremend- ous stock of the coffee in Sac Paulo ir the expectation that the next year would witness small coffee crop and this coffee | could then be sold at an advanced price 1 The next crops, however proved to bt abnormal and the amount of coffee fl storage assumed enormous proportions.
 "The Brazilian government had backed l the scheme by issuing bonds, and the l question arose as to the disposal of the coffee. syndicate of Wall street bro l kers went quietly to work on the prop osition and have almost carried it to a successful conclusion.
 "The placing of this 5-cent tax on each
 pound of coffee brought into this coun- try outside of the scheme of the Wall street syndicate, would work hardship on nearly every family in the United States, as practically every family uses coffee to some extent. Coffee has to be imported from other countries and the
 consumer would have to pay the addi. tional tax, not the planter. The average selling price of coffee at present is 2i cents per pound, but if this import tax is levied it will jump to about 2s cents.
 "As the amount of coffee used by each family averages from two to four pounds per week it can readily be seen how much more the family coffee bill will amount to under this tax. The country is already overloaded with coffee and the bringing of the II. 100000 bags here would give a supply large enough for nearly two years consumption It would be sold at the advanced price, while the government would receive no revenue from it."