Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1909-05-27
TEA MEN STIRRED UP
Over Senator Lodges Statement
Regarding Prices.


The Washington correspondent OF the
Brooklyn Eagle writes as follows:
senator Lodges statement that tea
selling at sixteen cents n pound is re-
tailed at sixty cents" has stirred up
the tea men, and the senior Senator from
Massachusetts Is being flooded with in
FORMATION, pro and con. The statement
was made only incidentally in the course
of debate upon another item, but 1t came
at the psychological momen: when the
retailers of the country already had
been reused by the charges of Senators
Flint OF California. Smoot OF Utah and
others that they we're largely responsible
for prevailing high prices.
The outbreak of the tea men Ia also
when the question Of taxing tea for rev.
enue purposes is not wholly settled. The
House levied a duty Of eight cents q
pound on tea coming directly from coun-
tries OF production and of nine cents on
tea coming otherwise. The senate
knocked off this duty. but an issue may
be made of the tea duty in conference.
II is generally the opinion at the Capitol
that no duty will be imposed. Never
theless. the finance committee will find
itself hard pressed to raise revenue, and
for the duty. believe It ought to be lev
led. and that it would not raise the
price Of tea to the consumer.
On this point the showings made by
the tea trade are very interesting. APP
parently two factions in the trade are
fighting. one side contends that five for
eign firms. with headquarters in New
York. distribute the bulk Of the tea used
lo nj tod y.
is quoted rs sixteen cents or seventeen
cents and the retail price an average of
sixty cents thus giving tremendous
profit to the distributors. BY the war
revenue act Of 1898 a duty Of ten cents
repealed in 1910. but the allegation is
made In the retail price never has been
reduced to the consumer. and that tea is
still paying this war tax, although the
great tea importers are raking off the
profits. II this is so. It is an exact du-
plcate Of the situation In the tobacco
trade. in which the tobacco trust cut
down the size of the it's packages when
the extra taxes were imposed in 1898.
The taxes We're taken off two years
later. but the size Of the package has re-
manned the same and the consumer as
usual, is paying at the war rates.
According 10 a letter sent to Wash
ington by W. j. Buttfield Of New York,
an American tea merchant. the greater
proportion of the tea business Of the
country is in the hands Of five concerns.
whose names and capt. aliza ton are as
follows:
Great Atlantic and Pacific Tea Com
pany. $2.l0OUo; Grand Union Tea Com
pany. 100000; James Butler Grocery
Company. sloooooOO: Upton Tea Com
pany OF England $l0.0Oo,0 90, and Tetley
and Company of England 5000. 900.
The first three named concerns control
some SEQ stores through the United
States. while the others distribute
through established groceries. According
to Mr. Buttfield these foreign concerns
all import a large proportion Of their
teas and buy the balance in the New
York market at the lowest prices. which
on an average are within one cent of
the import cost. The Upton and Tetley
concerns even export to England.
The average import value Of nine dif-
ferent teas bought at random In New
York from the above named five COM
panies Is found TO be Il cents. The
average retail duty paid price Of tea in
England is stated as g cents. The aver
age margin OF profit between import and
retail prices is stated to be 6ls to : cents
in England and from 81 TO 40 cents in
the United States. In favor of revenue
tax on tea. the fact is quoted that In
England for the past fifteen years tine
revenue ten tax has ranged from 10 cents
to is cents per pound.
practical demonstration has been
made in Washington within a few days
confirming the accuracy of the general
statement Just quoted. George Fl. Macy,
member of the United States Govern
ment Board Of Tea Experts. was sent TO
q local store of the Grand Union Tea
Company at 427 Seventh street, where he
bought nine half pounds OF as many diff
ferent grades of tea. Mr.. Macy then
made an expert examination Of the tea
with startling results.
In the case of an English breakfast
tea whose import value was % cents
pound, he was charged 81 pound AT
retail. For teas of the same kind costing
II and rs cents to import. he was charged
10 and 60 cents a pound, respectively. A
so-called Imperial" tea, costing Is cents
was sold for 81. and "Gunpowder' tea
with an import value of 70 cents. brought
81 also in the Washington retail market
The complete table follows:
Import Retail
Teas value. price.
English breakfast ......S022 SlO
English hroa