Omaha daily bee., 1909-07-05
TOBACCO MEN PROTESTING
They Object StrenuOusly to Threat.
ened Increase in Tax.
WILL BE ACCORDED HEARING
senate Finance Committee Agrees 20
support Provision Creating Pro-
posed New Customs
Court.

WASHINGTON. July A-Proposed in
crcases In the internal taxes on all forms
u manufactured tobacco have brought a
verltable hornets nest about the heads Of
the senat committee on finance
Protests are pouring in by wire and de-
mands for hearings are coming from every
section Of the country The committee de-
cided today that IL would have 70 harken
ment fixing the rates OF increases had been
prepared for Introduction IN the senate
Tuesday, kilograms have b., 4 sent out tell
ing the tobacco manufacturers that they
win be given a hearing before a sub
committee at l o'clock tomorrow.
Tobacco manufacturers including hun
dreds Of independent firms. say they were
given no notice OF the proposed increase
Of rates, The Bcveridge amendment was
introduced several weeks ago, but It had
not been token up by the committee and
was regarded as one of the many 'insurg-
ent' propositions, and, therefore, was not
given serious consideration. IL waS not
until last Friday that it became known an
Increase In the internal tax on tobacco
might be recommended Efforts we're inn
mediately begun to learn what force was
behind the proposed Increase. Representa-
tives OF the tobacco interests said today
they were surprised to learn that the force
is none other than President Taft.
President for Increase.
That the tobacco men are right in their
conjecture that the president favors an
increase in the tobacco taxes seems to be
borne out by the fact that Director i.
Dana Durand of the census bureau, form
erly assistant commissioner Of corporations,
has been In individual consultation with
the members OF the subcommittee Of the
finance committee. who are considering
the various tobacco amendments. These
meetings took place after long conference
between the president and Mr.. Durand
The investigation through the bureau Of
question. which resulted in a sensational
report dealing with the ability OF the
tobacco trust to control prices. was con-
Quoted by Mr.. Durand. He told members
Of the finance committee that the profits
OF the tobacco trust are inordlnate and
that the independents are just as able to
bear an increased tax.
Members Of the finance committee were
asked today whether It was true that
President Taft had advocated the advance
in the tobacco rates. They declined to
discuss the question for publication, but
their demeanor would seem to Justify the
inference that the administrator is back
of the proposed increase.
Increase OF Revenue.
An estimate OF the increased revenues
that would be promoted by the increases
In tobacco taxes as proposed by the Bev-
erldge amendment was received by the
senate committee today from the Internal
Revenue commission. II no decrease In
consumption is oocasioned by the proposed
increase, the .BeVeridge amendment would
raise about $40, 0 300 in excess of the
amount now collected, This amount is
said to be greater than the administration
desires TO draw from the tobacco industry,
and It is likely, therefore, that the rates
proposed may be lowered, especially that
on cigars. The tax may them be expected
to produce from Sl2, 900, 900 to SIS, 900, 900 in
excess Of the present revenues from to-
400,