Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-06-07
AIMS AT TOBACCO TRUST.
Bill introduced in Senate Would Tax
concsrn OUT Of Business

Washington June Gin accordance
with suggestions of Attorney General
McReynolds Senator Hitchcock intro
duced an antitrust amendment to the
Underwood tariff bill, which would
levy a special additional excise tax on
a sliding or graduated scale upon
manufacturers of tobacco. cigars,
ciearets and snuff The amendment,
coming from democratic member,
will receive thorough consideration
from the finance committee.
Seventy million dollars was the
amount Of the total excise last year on
tobacco products and Senator Hitch
cock has estimated that If the proposed
tax had been levied on last years bust
ness the foreign trust concerns
would have paid the additional tax as
follows:
American Tobacco Company, 81
800, 600 Liggctt & Meyers, 100000;
Lorillard Company, $4,000; American
Snuff Company, $1,000; George w.
Helnie Company, $4,000; Weyman d
Burton Company, $51 1000.
There would also have been other
coiupa subject to this tax If II
could be shown that they were under
ING same ONIeI SNIP VI IVA e' oHS
of the big companies said Senator
Hitchcock yesterday, and in the case
of the Lorillard company it would be
subject to much higher rate of taxa
ton II it could be shown that it is
owner or controlled by the same inter
ests that are back Of any other COM
pany.
1T is probable. therefore. that this
{ Il IL,
900 900 year, which is SO large that 1t
would soon cause real dissolution OF
the tobacco trust. If it did not it would
yield handsome revenue to the treas
ury and so handicap the trust that 1t
could not carry out it's program OF
crushing independent companies.
THE government already has the ma
chinery to enforce this tax. Tobacco
and snuff manufacture iii 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 sue
ceeds in this line of manufacture it may
succeed in others"
The progressive excise tax proposed
would not reach a manufacturer until
he controlled about 25 per cent Of the
total production of the articles Above
that amount he would DO taxed in a
rising scale on tobacco 1 cent pound
| for the first 100000 pounds per quar-
ter and so on up to s cents pound
These graduated taxes would be in adj
dition to the regular cents a pound
tax that all manufa cturers pay on to-
| bacco. The same is true Of the pro-
greseive tax on cigars. oigarets and
| snuff.
| Companies Of ordinary size would not
| be subject to this tax becauae it does
not apply to production below so. 000,-
900 pounds OF tobacco or 4,000,000
pounds OF snuff year. 60 that OF the
200 tobacco companies in the country
| probably only three would be effected,
and Of the seventy three snuff com
panies also only three would be taxed.
In tho matter of cigarettes the tax
would fall only on two, or at most
three. companies out Of 47s, and OF the
10000 cigar companies only two have a
product large enough to be taxed.
! At the White House it was said this
morning President Wilson was still
considering Attorney General Mercy
nolds' plan to tax manufacturers of