Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-08-21
HAWAII TOBACCO
men complain
TO TRADE BODY
Wholesalers Declare Business
Will Decrease if House
Bill 1920 Passes
C3p ,cla Star Bulletin Correspondence

(Dp SCIaI star Bulletin correspondence
HII.O, Hawaii August II C. ".
TObler. in a communication TO IN"
Board OF Trade Of Hilo, calls attention
TO the matter OF the proposed inCrceN"
the internal rev onuC tax on tobacco,
under house bill 40. $3.50, which is
now under advis nIntnt in the financial
committee Of the senate.
This bill proposes to increase tn"
tax on tobacco one hundred per cent,
which increase. d ,lares Mr.. TObler,
Is beyond the power OF the manutac-
turers TO absorb in view Of the IN
creased cost OF material for pac ages
cartons, dyes tc color same. fibre for
packing and TIL high cost OF leaf
tobacco, the latter being due to the
ever-increasing cost OF labor.
To meet the contingency II will be
necessary to decrease the size Of the
packages, or else increase the present
prices OF the oods. Either change
would work hardship on the con-
sumner, declares Tobler in his letter.
and cause him TO bear the burden of
the increased cost. This would, in
the long run, bring about decrease
In the tobacco hui ness in this and
other communities. thereby lessening
the money circulation and general
prosperity.
AT the present rate of taxation,
which is $1.25 a thousand on Gig
arettes, and eight cents er pound on
other tobaccos," says NJ. Tobler, the
revenue on all tobaccos nets the gov
eminent about one hundred million
dollars per annum. While one would
Naturally suppose that a double tax
would make the revenue just twice as
much, 1t appears from the estimate
OF the secretary of the treasury, that
the proposed new tax would only
bring in about $50 100000 additional
revenue. This is evidently allowing
for decree-e in the business, caused
by the effect of the double taxation,
OF twenty-five per cent, which, in my
opinion, Is most conservative.
MY work among the tobacco deal
ers on this island during a period of
nearlS two years sho' me that the
average dealer handles about one hun
dred dollars worth Of tobaccos month
~, which should yield him a profit of
about twenty-five dollars. Plantation
stores, Of course. handle four or five
times as much tobacco Is the dealers
am speaking about. n,
There are between five. and six
hundred tobacco dealers on this island,
each paying ten dollars per annum to
the county for tobGcco, dealing Ii.
censes This nets tie county between
five and six thousand dollars per year
from this source alone. Investigation
will show that our W lesalers derive
a lib Sral part Of their profits from to-
baSco furnished these dealers. Would
not a decrease IN the tobacco bust
ness mean q lcSS in profits to the re-
tail dealer to the point where future
licenses would not be taken out. This
would work hardship on the county,
which 1t can i'll afford and it would
mean q cutting Of the wholesalers
profits as we'll
The house bin referred to also pro-
vides for a five per cent tax on cos
metics, proprietary medicines, chew
ing gum. jewelry and moving picture
Louses, which all are no more of
luxury than tobacco which il to be
taxed one hundred per cent.
I'VE tobacco dealers feel that It is
quite fair that We should pay an add.
tional tax on our products in proper.
ton to that borne by manufacturers