Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-09-19
COFFEE is
EXEMPTED.
FROM TAX
Complete Report From WASH
ington Shows This Article
Included in List on Which
Consumption Tax Was Voted
Down BY Senate

DOFFEE is not to pay~a consump-
ton tax OF cents a pound, as
49, first provided for in the war rev.
enue tax bill, as has been generally
believed here for the past 10 days,
that coffee taxation was included In
the war revenue bill.
When the news was cabled here
by the Associated Press on Sept. 10
that the United States senate had
voted TO retain the duty drawback
upon sugar and had eliminated the
consumption tax on sugar, cocoa, tea
and molasses, coffee was not includ-
ed in the despatch. ~
A few days later IL was announced
that Delegate Kuhio had been advised
by Senator Hardy of Ohio that all Ell.
forts to get the proposed consumption
tax on Hawaiian coffee left out OF
the bill should be dropped. This added
to the belief that coffee was to pay
the consumption tax, while sugar, tea,
cocoa and molasses we're exempted.
On last Sunday morning ]. NJ. Nc
Chesney, Honolulu coffee man, re
ceived a cable from Jack Desha, sec
rotary to Delegate Kuhio in Washing
ton, which read as follows:
war revenue bill will have no cof-
fee tax next wintera Question comes
up in bill raise additional revenues"
This message was sent five days
after the senate had refused to Inn
pose the consumption tax by vote
of 81 to "a, and after the war revenue
bill had passed the senate. 1t is pre-
suIned that In the interval, Secretary
benhh had determined no effort was
to be made in the house of represen-
natives to attempt to place the con-
sumption tax on coffee. in opposition
70 the views of the senate.
With the arrival OF the Wilhelmina
yesterday, correspondence from Wash.
ington reported how the consumption
tax provisions were voted down by
any overwhelming majority In the sen,
ate:
.'In the last hours Of the passage of
the bill the consumption taxes up
on coffee, tea, sugar and cocoa were
cit out of the bill. So were the pos
tai increases on second class mail
matter, which would have affected
chiefly newspapers and magazines.
THE senate declared itself unwill
ing to uphold the finance committee
in repeating the drawback upon SUI
gar brought here, refined and then
exported. The drawback still stands
as a law. Last year IL would have
paid $4,000, 900 to the government in
taxes which, without the drawback,
the sugar refiners would have to pay
as a tax.
"At the last moment Senator Bran.
degee of Connecticut succeeded in
having operation of the big bill con-
fined to the duration Of the war.
THE bill now goes to conference
between the house and the senate, |
where the differences will be threshed |
out. II is hoped that within a fort |
night all matters of dispute will have |
been adjusted and the president win |
be able to affix his signature and con.
vert the proposed taxation into law.
Zone of the very first attacks made
on the hill was by Broussard Of Lou. |
isiana, VIM conducted an assault on
the consumption taxes. These would |
have taxed coffee cents pound, tea |
s cents, sugar y cent and cocoa 3
cents, the revenue amounting to about |
$50, 600 600.
The Louisiana senator first moved
TO strike out the coffee tax, and this |
was carried to a vote of 81 to q. He |
followed this with further success by |
having the tax on molasses killed BY |
a vote of so to %. Senator Simmons, |
chairman of the finance committee, |
saw how the vote was going, and sug.
gested that all consumption taxes be
dealt with at once. On Broussards
motion the senate rejected them all
by vote Of 50 to 2S."
Mr.. McChesney says he is not sur
prised to hear that coffee has been
left free Of the consumption tax, as |
were the other food articles. He en-
.siaasizes the statement that he had
Neard of no Hawaii men who had OBJ
jected to the imposition of the con.
sumption coffee tax, II it was believed
necessary as a war measure.
1T has always been the policy of
tariff advocates to not tax coffee and
save the poor mans breakfast cup
from prohibitive cost. II would have
been a reversal Of policy to tax coffee
and not sugar." he adds.
The result of the elimination of the
consumption tax will be nil, so far as
concerns the Hawaii coffee produc-
ers, for, he says, the extra tax, if
imposed, naturally would have been
added TO the price which the con.
sumner now has to pay for coffee.