New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-01-24
LOSS ON TOBACCO
MANY MILLIONS
oeb Begins Inquiry on Cuban
Leaf Imports That May Sur
pass Sugar Disclosures.
TRADE CUSTOM, NOT FRAUD
discrepancy in Wrapper" and
FILLER" Statistics Indicates
s5,0O0,100 Annual Loss,
Treasury Officials Say.


p..sd on the great discrepancy be
Zen tho percentage OF wrapper TO filler
- hinder used in the manufacture of
"a Havana cigars, and the percentage
:, actual Cuban importations on which
sn,v has been paid as wrapper" the
-,.ssurv Department has started
,oprtry-wile investigation OF the to-
,.cco inportations from Cuba into the
,.-i,ed states. which promises TO un-
,.rth larger loss to the governments
,,s,ors revenue than was disclosed by
,be wholesale frauds Of the sugar trade
ir The recent Investigations Of that in
dus'ry.
Tobacco trade statistics show that
,i-ar makers who turn out pure Havana
cigars must have 6 per cent Of their
,,ock in wrapper" while the statistics
- tho Treasury Department show
traction under one-ffth of per cent OF
tho Cuban importations classified as and
having duty rs wrapper"
According to tho advance reports on
this tobacco investigation. the Cuban
,~nortations have becn admitted under
Classification which i'm the fiscal year
ended jun 90. 1900. deprived tho Gus
,or House Of something between 5000
onD and SiW0OO0. and it was said yes
,.-sav hv Treasury Department officials
that approximately the same sum had
bsen lost 70 the government annually
m at least five years past. From the
irvssiieation thus far. however. it was
,hs belief that this huge loss to the gov
eminent vas moro matter of long es-
,sbishsd trade custom than of fraud.
Collector Loeb Talks.
We know that the tobacco trade has
been getting tho better of as said Will
ian Loeb. ir.. Collector Of this port, yes
'trdsr. "hut We do not know 10 what
extent and the investigation has not
proceeded far enough to determine that
yet"
The probable result OF the inquiry, Mr..
Loeb continued. would nc an amendment
70 the customs regulations by which
he Custom House could arrive more eX-
sctly IL the amount Of each class Of to-
bacco leaf imported from Cuba than was
possible under the present regulations,
and a this stage OF the investigation
7eithcr criminal prosecutions nor civil
wits for back duties were contemplated.
The whole investigation hinges upon
49, r Goo
out-aud-out fraud. as in the sugar cases.
and has been confined entirely TO the
Cuban importations
AT Cuban tobacco is known 70 the
trade as Havana" though but very
small percentage OF il is grown in tho
Immediate neighborhood Of tha; city, or
even u that province. and the Havana
ltaf is considered by the trade as the
finest tobacco in the world for cigar pur-
poses
Schedule r Of the Payne tariff law pro
udes that wrapper tobacco shall pay
Gty 30 the rate Of 81 81 a pound. and
hat filler tobacco" when hacked with
uole thau - per cent Of wrapper to-
'ac,o shall he assessed as wrapper" at
te same rate.
Iitcr tobacco however. rays duty
a the rate of - cents a pound. and in
10th these classfcations Cuban importa-
tons. by reason of the reciprocity agree
nent with that island enjoy 20 per
cent reduction These duties are the
same as those I'm the Dinglcy tariff law,
% that the condition 10y which the gov
trnmcnt has been losing at the rate 81
more than S3.OOO.cOO a year prevailed
before the passage Of the 1909 tariff law.
ln the schedule quoted above, imme-
dstcy after the phrases naming the
duties. the laV defines exactly what shall
10 ciassCd as wrapper tobacco in these
words. The term wrapper tobacco. as
used in this section means that quality
" leaf tobacco which is suitable for
cgar wrappers. and the term filler to-
0scco means an other leaf tobacco
Based on 1909 ln'portations.
The complaints on which the present
government Investigation of the tobacco
uade importajions from Cuba is based
snow that i'm the fiscal year Of l9O9 only
$3.50 pounds ~ tobacco leaf came INTO
uis cowtrr from cuba on which the I'M
"f'f's paid duty AS wrapper tobacco
ana Ia the same period there vas m
loT'ed from cuba 20 -. 40 pounds OF
'oacco leaf classified and duty paid as
fl'- tobacco
m Tho same p-riol the receipts ~ the
New York Custom House on Cuban i'm
i@'a'ions we're as follows: