The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1909-07-05
Presidents Plan of Hitting the
Trust Stirred up That
Interest
BEvER|OCE AMENDMENT
NAY BECOME A LLW
Tobacco Combine Had Considered X
a Joke Until II Was Discovered That
the President Was Urging Its Pass.
age And Then 1t Got Busy.

Washington. July Proposed in
creases i'll the internal taxes on all
forms of manufactured tobacco have
brought a veritable hornets nest
about the heads of the senate com.
mittee on finance
Protests are pouring in by wire and
demands for hearings are coming
from every section of the country. The
committee decided that it would have
to harken to the demands and. al
though an amendment fixing the rates
OF increases had been prepared for
Introduction in the senate on Tues
day. kilograms have been sent out
telling the tobacco manufacturers
that they would be given a hearing
before a subcommittee at II o'clock
tomorrow.
Tobacco manufacturers, including
hundreds of independents say they
were given no notice of the proposed
increase of rates. The Beveridge
amendment was introduced several
va! oSo. Jul II idu llOl Uceu tdhGIl up
by the committee and was regarded
as one of the many "insurgent" propo-
sitions and therefore not given seri-
Gus consideration. 1t was not until
last Friday that it became known an
increase in the internal tax on to.
bacco might be recommended. Efforts
We're begun Immediately to learn what
/ force was behind the proposition. Rep
resentatives of the tobacco interests
said today that they were surprised
| to learn that the force is none other
than President Taft. That the tobacco
men are right in their conjecture that
the president favors al increase in
the tobacco taxes seems to be borne
out by the fact that Director E. Dana
Durand of the census bureau. form
erly assistant commissioner Of cor
porations. has been in individual con-
sultaton with the members of the
subcommittee OF the finance commit
! tee who are considering the various
tobacco amendments. These meetings
took place after a long conference
between the president and Mr.. Du-
rand.
| The investigation through the bu-
reau OF corporations Of all phases of
the tobacco question. which resulted
I in a sensational report dealing with
! the ability of the tobacco trust to con-
! troll prices. was conducted by Mr..
Durand. He told the members Of the
| finance committee that the profits of
the tobacco trust are inordinate 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
decided not to discuss the question
| for publication. but their demeanor
would seem to justify the inference
that the administration is back of the
proposed increase. An estimate of
| the increased revenues that would be
produced by the increase in tobacco
taxes as proposed by the Beveridge
amendment, was received by the SEN
ate committee today from the internal
revenue commission. If no decrease
| in consumption is occasioned by the
proposed increase the Beveridge
amendment would raise about $20,-
| 100000 in excess of the amount now
collected. This amount is said to be
greater than the administration de-
sires to draw from the tobacco indus
try and it is likely. therefore. that the
rates proposed may be lowered. es-
pecially that on cigars. The tax may
then be expected to produce from $12,-
600, 900 to s15.O00.000 in excess of the
present revenues.