The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-05-27
THE CIGAR INDUSTRY.
Another Depressing Survey Of
Much Taxed Calling.

To THE EDITOR or THE SUN-Sir: Fer
NIT "A correction in the letter on The
Ciga. Industry Of the statement that
t'ucle Sam receives SCI 100000 from
tax paid cigars despite revenue frauds.
The above represents only the inter-
nal revenue tax on the cigars. but he
resolves probably $40. O0O. coo more from
tarlfY taxes on imported tobaccoS used
In making them.
Being short" Temporarily. We hopc)
through the war. our kind uncle levied
eight grades OF tax for the blessed priv
ilege OF making cigars. these varying
according TO the output. the maximum
tax being s2.4sS on an annual output
81 10000. 900 or over, the minimum a
tax III 81 on 100. 900 or less.
Therefore Uncle Sam annually draws
over $40, 900. 900 from the cigar manu-
featuring industry. but suddenly be-
comes very vengeful because perhaps
as much as 1 per cent. OF this escapes
him through petty tax evasions.
He In even dissatisfied with the pres
ent Income from cigars, n evidently.
Judging from the fact that the industry
had not united In one grand kick against
his taking this. "a most jealous con-
gresham from Pennsylvania recently in
troduced n bill, designed TO increase the
revenue tax on cigars.
Uncle sam undoubtedly believes the
manufacturers share of prort from the
industry far larger than his own. and
the public likely considers the industry
a ver.table gold mine to AFFORD Uncle
sam his present income from II. but
the following ought 10 tend to shatter
such delusions.
The total annual profit Of the entire
cigar manufacturing industry does not
equal even the internal revenue tax.
and the manufacturers average net
profit on 1000 cigars does not equal the
So tax OF them.
Under these conditions cigar manufac-
turing has hecome almost impossible
ON a small scale. and decidedly unproi't-
able on even n large one.
Within the past twenty years. despite
annual additions OF new factories. re-
RENEE from the industry so exceeded
these that the present number OF fac
tories shows a full third reduction from
that Of twenty years ago. Retiremer'S
were largely involuntary, those retiring
on their ~laurcls. or retaining sufficient
means To engage in other fields. being
striking exceptions.
The present war tax. according 10 an
nual output, makes the sad revelation
,hn, 20 rer cent. Of the surviving fac
tories nay the minimum tax 81 on
100000 or less aunual output a de-
ia led statement of the output OF th,s
20 per cent would be a still sadder
revelation.
Scamcu fight shy Of manning unsca-
worthy craft II IL becoming increasingly
d,irrtlt t. obtain Cigarnakcrs. The In
Gistry offers no future. and the aNcrag"
yearly earnings of cigarmakerS do not
exceed the average pay G&1.9?) monthly
OF enlisted men IN the navy YET these
are ALSO found ,houscd and fed,
! Fasting large factories are not due
To prosperity and expansion of Indus
try. hut To absorption Of output of
smaller ones. dog eat dog.
Unless Indifferent t" III" welfare OF
the Industry. the Government should in
ye,tigate the workings of !ts present
heavy taxes ON l., There are ample r'a-
SONS 10 fear that continuation OF pres
eat taxes viii in line prove them the
Instruments OF its destruction. II is al
ready progressing In this direction.
ADOLPH DrPESHEiMER,
New YORK, May 90