Arizona republican., 1913-06-06
In Accord With Suggestion
of Attorney General Nc
Reynolds the Antitrust
Amendment to Under
wood Bill is introduced
WILL IMPOSE
HEAVY TAXATION
Believed Will Force Big
Concerns to Relinquish
Efforts to Crowd Out the
Small Companies While
Enriching Treasury
ASSOCIATED PRESS p1spArcH1

WASHINGTON, June SIN accord
with suggestions of Attorney Gen
eraI McReynolds, Senator Hitchcock
of Nebraska, introduced today an an
THRUST amendment to the Under
wood tariff bill, which would levy a
special additional excise tax on
sliding or graduated scale on manu-
facturers of tobacco, cigars, cigar
cites and snuff The amendment
coming from a democratic member,
will receive the thorough considera-
ton of the finance committee
The progressive excise tax pro-
posed will not reach the manufact-
urer until he has controlled about
twenty-five per cent of the total
production of the articles over that
amount he will be taxed a rising
scale on tobacco. one cent per pound
on the first million pounds per quar-
ter and two cents on the second
million and so on up TO six million
pounds. These graduated taxes will
be in addition TO the regular eight
cents a pound tax all manufacturers
pay on tobacco. The same is true
of the progressive tax on cigars
cigarettes and snuff.
Companies of ordinary size will
not be subject to this tax because it
does not apply TO a production be-
low S0,O00,0O0 pounds of tobacco or
100000 pounds of snuff yearly so
that of the 2700 tobacco companies
in this country. probably only three
will be affected and of the seventy
five snuff companies only three will
be taxed. In the matter of cigarettes
the tax will fall only on two or
three companies out of AIS and of the
0ic
have a production large enough to
be taxed
Senator Borah introduced an
amendment to the tariff bill which
viii bar from entry all goods manu-
factured wholly or in part by child
rem under fourteen or by children
under sixteen who are required to
work more than eight hours a day
or more than forty eight hours a
Week r will also bar all imports
made wholly or in part by convict
1a-c
1 ao IS the Am2unt Of
ti a1at excise 81 year on tobacco
9foa3eF aaa Senator Hitchcock
estimated rhat # the proposed TAX
aa4 ae 5n last years bust
ri trust concerns would
ate additional tax as fol-
@meriea4i Tobacco company, ST.
-'-o1o' Lzggett and Meyers, $780,
Aofillard and company, $4,000:
As,stl2an Snuff company, $4,000:
Gsor w Helme Co, $4,000: Wey-
t1an ad Burton company, $4,000"
ere would also be other COM
aan : subject to this tax if it be
an they are under same owner
salp or control of any big company"
id Senator Hitchcock today "and
the case of the Lorllard company
It would be subject to a much higher
rate Of taxation if it could be shown
that it is owned or controlled by
the same interests that back any
other company 1t is probable there
fore that this tax in the aggregate
viii reach $150o0.000 a year which is
$50 large it viii soon cause the real
dissolution of~the tobacco trust If
does not it would yield a hand
some rey enue to the treasury and
50 handicap a trust that it could not
carry ort the program of crushing
the indep.7 ndent companies
The government already has the
machinery to enforce the tax. To-
bacco and snt2ff manufacturers of
all forms are under complete gov
ernmeEt control. The power to tax
to the point Of deetruction is un-
questioned 1t is summary. simple
and irresistible If it succeeds in
this line of manufacture it may sue
ceed in otE ers."