The Washington times., 1909-06-25
SENATOR BEVERIDGE'S EX-
POSE OF TOBACCO TRUST.

Senator Beveridge had rather the
most complete and conclusive case that
has been presented by any of the as
sailants of the tariff provisions, in his
exposure Of the relations of the Tobac-
co trust to Governmental favors. While
the development of all the facts, and
their array IL logical and effective or
der, cost vast deal of research, the
showing, once put in order, was so
overwhelming that it is not possible
TO imagine how the Senator's amend
ment can be rejected.
war tax was put on tobacco at
the time OF the Spanish war; an ex-
else, which was designed to be passed
along to the consumer. In order that
this might be thus passed on, pro-
vision was made in the law by which
tobacco manufacturers were permitted
TO give underweight packages, and
label them as of fuil weight The
man who paid for an ounce of smoking
tobacco got enough less than an ounce
10 represent the excise which the
manufacturer was paying to the Gov
eminent. That was a very effective
way of collecting it; the money went
10 the Treasury, and it was Just what
the Government intended to accomplish.
But when the war was over, Thomas
?. Ryan, looking around for some good
thing to turn into money, saw the
possibilities of this tobacco situation.
If he could get control of tobacco, and
then continue selling the under-weight
packages, without paying the war
taxes, he would have the cheerful
privilege. of collecting that war revenue
and putting it into the pocket of his
combination.
Mr.. Ryan managed it. He first
fought his way into control of the To-
baeco trust. Then, just as he had evil
IDENTIFY foreseen, the war taxes were
repealed. BUT THE PERMISSION TO
SELL UNDER WEIGHT PACKAGES
WAS NOT REPEALED Evidently
Mir. Ryan and his very able legal talent
must have been in position to foresee
this pleasant arrangement, for they
CAPITALIZED IN ADVANCE in the
organization of their corporations, the
very profit which they expected to
make by selling short-weight packages
and poeketing the difference IN price.
That was not all. Not only was
the Tobacco trust able to know in ad-
vance that it was going to get the law
thus fixed in its favor it went farther.
So confident was it in the security of
its position that it proceeded next to
raise the prices on tobacco still fur
ther As a result of this privilege of
collecting a war tax and keeping it.
and Of the power which monopoly gave
of still further raising the price of
tobacco, the Tobacco trust has come
70 be the most exorbitantly profitable,
the most preposterously prosperous, of
all the great combinations.
Senator Beveridge outlined in fasci-
mating detail and clearness the steps
in the organization of the Tobacco
trust. It began in 1890 with s5,O0O,OO0
worth Of property, and capitalized it
at SIS, 100000. In few years this had
grown to $3.50, 100000, and including
holdings in competing concerns made
sn aggregate of s3l7,00O,OOO.
Thus strong and thus secure from
The law, the monopoly, Senator Beye-
ridge shows, proceeded with its bust
ness Of absorbing rivals and defeat
ing efforts at competition; making
enormous profits out of the privilege OF
overeharging the public for under
weight packages of tobacco, until today
:. has larger monopolistic power than
any other concern save only STANDARD
Oil.
Senator Beveridge's address brought
the Senate TO the point where it was
ready to adopt his carefully prepared
amendment, but there was promptly
interposed the plea for delay and for
more consideration. The matter went
over, of course, because Senator AID
rich wanted it to 90 over. But it
will come up again, and unless the
Senate is 60 make frank confession
that it is utterly unable to oppose
any demand Of a trust, it viii be
adopted
. Ia 1906 this trsst's profits were over