The Birmingham age-herald., 1913-06-06
HITCHCOCK URGES
AMENDMENT TO
UNDERWOOD BILL
Would Lew Special Addi-
tional Tax on Tobacco
Manufacturers
LARGE COMPANIES
TO BE AFFECTED
Proposed Tax Would Not Reach Man
ufacturer Until He Controlled
25 Per Cent of Total
Production
THE DAY IN CONGRESS

: ,.
Lobby investigating committee vot-
ed to favorably report bill to delay
customs service reorganization until
January /, 1914.
Mrs. Laura Kellogg before indian
affairs committee condemned Indian
education system and Indian bureau
stalking.
Finance committee continued consid-
GRAFTON of the tariff bill.
President Wilson submitted for con-
frmation several nominations
Senator Hitchcock introduced amend
ment to tariff bill to levy additiona,
excise tax on production of larger
tobacco factories to prevent monopoly.
Senator Kenyon introduced resolution
instructing interstate commerce COM
mission to investigate acquisition OF
Chicago and Eastern Illinois railroad
by st. Louis and San Francisco. and
subsequent receivership.
In executive session decided to post
pone renewal of limited arbitration
treaties with Great Britain, Italy and
Spain.
West Virginia coal mine strike in
vestigating committee continued its
plans for hearings at Charleston.
Senator Smith of South Carolina in
troduced immigration bill, practically
a duplicate of Burnett-Dillingham bill.
Foreign relations committee approved
renewal of arbitration treaties with
Great Britain, italy and Spain; ex-
tradition treaty with Paraguay; bills
for elevation of legation to Spain to
an embassy; independent legations in
Uruguay and Paraguay. and nomina-
tion of Thaddeus A. Thomson as min
lister to Colombia.
Adjourned at 3:15 p. M, until
p. M, today.
HOUSES:
Not in session.
Meets noon today
Budget committee began considera-
tion of plans to reform methods OF
framing appropriation bills.
Washington, June 5.-In accord wit
suggestions of Attorney General Mercy
nolds, Senator Hitchcock of Nebraska
today an antitrust amendmen
to the Underwood tariff bill, which woul
a graduated scale upon manufacturer
of tobacco, cigars. cigarettes and snuff
The amendment. coming from a demo
cratic member, will receive thorough con
sideration from the finance committee
The proposed tax would not reach man
ufacturer until he controlled about % pc
cent of the total production of article
in his line. over that amount he woul
be taxed in a rising scale on tobacco,
cent a pound for the first 1,Oo0, 900 pounds
2 cents a pound for the second 1,Ooo. 90
pounds, and so on up to cents a pound
These graduated taxes would be in addi
ton to the regular s cents a pound ta,
that all manufacturers pay on tobacco.
Affect Large Companies
Companies of ordinary size would b,
subject to this tax because it does no
pounds of tobacco or 1900 600 pounds OF
snuff year, so that of the 27OO tobacco
in the country probably onl,
three would be affected, and of the 4:
snuff companies, also only three would
be affected. In the matter of cigarettes
the tax would only fall on two or at mos
three companies out of AIS and of the
product large enough to be taxed.
Eighty million dollars was the amoun
of the total excise last year on tobacco
products and Senator Hitchcock has es
timated that if the tax had been Levied
on last years business "the followiuf
trust concerns would have paid the ad
ditional tax as follows: American To
bacco company. $7,5OO,OO0; Liggett &
Meyers, $3,l00,000; Lorillard company
$l44, 900; American Snuff company, $1,000
George w. Helme company $4,000; Wey
man & Burton company. sol 900.
There would also have been other
subject to this tax If 1t coulC
be shown that they were under the same
ownership of control as any of the big
said Senator Hitchcock to-
day, "and in the case of the Lorilla rd
ii would be subject to a much
higher rate of taxation If it could be
shown that 1t is owned or controlled
by the same interests that are back OF
any other company. 1t is probable there.
fore. that this tax In the aggregate would
reach $l5.000,000 a year. which is So
arge that 1t would soon force a rea
dissolution of the tobacco trust. II i
snue to the treasury and so handicap th,
-iust that it could not carry out it's pro
gramme of crushing independent com
Danies.
Enforcement Regulated
"rhe government already has the ma
,hne to enforce this tax Tobacco an,
inuff manufacturers in all forms is un
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