The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-06
NEW BLOW IS AIMED
AT TOBACCO TRUST
McReynolds Proposes to Levy
Additional Excise Tax on
Graduated Scale.
AMENDMENT is INTRODUCED
Measure Certain to Have Careful
Consideration by Finance
Committee.
AMENDMENT is INTRODUCED

Washington. June 5.-In accord with
suggestions of Attorney General Nc
Reynolds Senator Hitchcock. of Ne
braska, introduced an antitrust amend
ment to the Underwood tariff bill.
which would levy n special additional
excise tax on a graduated scale upon
manufacturers of tobacco cigars,
cigarettes and snuff. The amendment,
coming from q Democratic member
will receive thorough consideration
from the Finance Committee. The pro
posed taN~would rot reach manufac-
turer until he controlled about % per
cent of the total productions of arti-
cies In his line. over that amount he
would be taxed on rising scale on
tobacco i cent a pound for the first
100000 pounds, cents n pound for
the second 100000 pounds, and so on
up TO cents a pound. These gradu-
ated taxes would be in addition to the
regular cents pound tax that all
manufacturers pay on tobacco.
Small Companies Escape.
Companies Of ordinary size would
not be subject to this tax, because it
does not apply to production below
so, 100000 pounds OF tobacco or 4. 600, 600
pounds of snuff n year, so that of the
200 tobacco companies in the country,
probably only three would be affected,
and of the seventy three SNUFF COM
panies only three would be affected
In the matter of cigarettes the tax
would only fall on two. or at most
10000 cigar companies only two have
production large enough to be taxed.
Seventy million dollars was the
amount OF the total excise tax last
year on tobacco products, and Senator
Hitchcock has estimated that if the
tax had been levied on last years
business. "the following trust concerns
would have paid the additional tax, as
follows: American Tobacco Company.
S7000.000; Liggett & Myers. $1,000 1000;
Lorillard Company. $4,000; American
Snuff Company. $1,000; George w.
Helme Company. $4,000: Weyman- Bru-
ton Tobacco Company, 1000.
There would also have been other
companies subject to this tax if it
could be shown that they were under
the same ownership of control as any
OF the big companies" said Senator
Hitchcock to-day, land in the case of
the Lorillard Company, 1t would be
subject to much higher rate of taxa
ton If it could be shown that it is
owned or controlled by the same inter-
ests that are back of any other com
pany 1t is probable, therefore, that
this tax in the aggregate would reach
s15,0oo,000 a year. which is SO large
that IT would soon force a ready solu-
ton of the tobacco trust.
If 1t did not, 1t would yield a hand
some revenue to the treasury, and so
handicap the trust that it could not
carry out its program of crushing in
dependent companies.
Its Power UnGuestioned.
THE government already has the
machinery to enforce this tax. Tobacco
and snuff manufacture in all forms is
under complete government control.
The power to tax to the point of de-
struction is unquestioned 1t is sum-
mary. simple and Irresistible. If it
succeeds in this line Of manufactures
1t may succeed in others"
Attorney-General McReynolds to day
had an extended conference with SEN
ator Simmons chairman OF the Finance
Committee, about the graduated tax
plan. The Senator expressed great in
terest in the idea, and promised that
the committee would give it careful
consideration. Senator Borah intro
duced an amendment to the tariff bill
which would bar all goods manufac-
tured all or in part by children under
fourteen or by children under sixteen
years old who are required to work
more than eight hours day. 1t also
would bar all imports made wholly
or In part by convict labor,