The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-06-11
SPECIAL TOBACCO TAX.
MEASURE INTRODUCED BY SEN
ATOR HITCHCOCK WOULD
ONLY HIT TRUSTS.
introduced I'm Accordance with Views
OF Attorney General McFcynOlds
Those Trusts Which Would Feel
Effects of Law.

Washington. Juno 5.-In accord
ance with suggestions of Attorney
General McReynolds, Senator Hitch
cock of Nebraska introduced an anti
trust amendment to the Under
wood tariff bill. which would levy a
special additional excise tax on
graduated scale upon manufacture Of
tobacco, cigars, cigarettes and snuff.
The amendment, coming from a Dem
ocratic member will receive thorough
consideration from the finance com
mittee. The proposed tax would not
reach a manufacturer until he con-
trolled about 25 per cent of the total
production Of articles in his line.
over that amount he would be taxed
in a rising scale on Tobacco, cent
a pound for the first million pounds
cents pound for the second million
pounds and so on up to cents a
pound. These graduated taxes will
be in addition to the regular cents
a pound tax that all manufacturers
pay on tobacco.
Companies of ordinary size would
not be subject to this tax because it
does not apply TO a production below
so, 600, 600 pounds of tobacco or 4,OOO,-
900 pounds of snuff a year; so that of
the 2,70O companies in the country
probably only three would be affected
and OF the 81 snuff companies, also
only three would be affected. In the
matter of cigarettes. the tax would
fall only on two or at most three
companies out of AIS and of the
10000 cigar companies only two have
a product large enough to be taxed.
Seventy million dollars was the
amount of the total excise last year
on tobacco products and Senator
Hitchcock has estimated that if the
tax had been levied on last years
business the following trust con-
Germs would have paid the additional
tax as follows: American Tobacco
company, $7,500,00O: Liggett & Myers
s3,1O0,O00; Lorillard company, $114,-
900; American Snuff company. s77,-
900: Geo. w. Helms company, $780,
900; Wyman & Burton company,
s51, 900.
There would also have been other
companies subject to this tax if it
could be shown that they were under
the same ownership or control Of any
of the big companies" said Senator
Hitchcock today. "and i'm the case Of
the Lorillard company it would be
subject to a much higher rate of taxa
ton If il could be shown that it IL
owned or controlled by the same in
terest that is back Of any other COM
pany. 1t Is probable therefore that
the tax in the aggregate would reach
5000. 900 q year, which is so large
that it would soon force a ready solu-
ton of the tobacco trust. If it did
not it would yield handsome reve-
nue. to the treasury and so handicap
the trust that it would not carry out
its programme of crushing independ-
ent companies.
The government already has the
machinery to enforce this tax. To-
bacco and snuff manufacture in all
forms Is under complete government
control The power To tax to the
point of destruction is unquestioned.
II is summary, simple and irresista-
BILE. III it succeeds in this line OF
manufacture, it may succeed i'm 9TH
ers."
Attorney General McReynolds to-
day had an extended conference with
Senator Simmons, chairman Of the
finance committee, about the gradual
ed tax plan. The senator expressed
great interest i'm the idea and promis-
ed that the committee would give il
careful consideration.
Senator Borah introduced an
amendment to the tariff which would
bar from entry all goods manufacture
ed wholly or i'm part by children un-
der If years of age or by children
under l6 years of age who are re-
puircd To work more than cigh hours
~ day or more than IS hours a week.
II also would bar all imports made
wholly or i'm part 10y convict labor