Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-18
DISPUTE AROUSED
OVER TOBACCO TAX
Levy on Cigarettes in Chi
nese Province Causes Pro-
test by U. S. Exporters.
BY j. {. ROYLE.

special Dispatch 10 j ne SthF.
NEW YORK. February 1S.-The
tremendous foreign trade OF the
United States in cigarettes has been
the basis of considerable anxiety on
the part of the State Department re-
Gently. The importation Of cigarettes
into certain provinces OF China and
tho tax imposed on these imports by
the provincial authorities has become
D. severe point of issue between the
PekinE government. the state au-
thorities and the representatives of
foreign nations.
Cigarettes have become the most
popular form OF tobacco in the Flow
.ry Kingdom. That country is the
yargcst foreign consumer OF Ameri-
can cigarettes. There We're 1926, 030. 900
OF the paper tubes exported to China
last year from this country, with d
value of s17.2O6.2OS. The shipments
10 Hongkong alone totaled 297, S65, 900
cigarettes, valued at s534,3ol.
Special Tax Imposed.
The Independent province of Che
hiang started the trouble by impos-
ing an additional tax OF 20 per cent
on cigarettes entering that province.
The regular Chinese customs duty on
these products is per cent. as fixed
by the international customs treaties.
Lu lung Hsiang, the Chekiang chief.
declares that the provincial assembly
ASiShed to bar cigarette smoking en-
tirely and that the 20 per cent tax
was compromise affected by him. He
argues that 1t does not conflict with
the customs treaty, since it is paid
entirely by consumers through the
purchase of revenue stamps when
hey buy package of cigarettes
The British and American repre-
Sentatives, however, declare it is an
opening wedge for violation OF all
International customs agreements
with China. President Ts;to Kun, at
Pcking. ordered the. Chelliang author
tiles TO remove the tax. hut that
province does not recognize him and
paid no attention to his order.
Fenr oven Enforcement.
An attempt to enforce the order.
- IT has been feared, might plunge
Khina again into internal war. The
National Students Federation is ia
voring the tax in other provinces
and the merchants are opposing 1t
and threatening to close their shops
+ 1t Is levied. London tobacco man.
ufacturers also have u large market
This country produced 64.450,617.-
'G.7 small cigarettes last year and
IS,377.:S1 Large" cigarettes. This
distinction between them is that the
small cigarettes weigh less than three
pounds per thousand and the large
cigarettes more than three pounds This
production was an increase of nearly ten
billion over 1922, the major portion of
which came in the small varieties.
Insurance business Booming.
There has never been so broad a
demand for life insurance protection
In this country as at present" says
William A. Lay, president of the
Penn Mutual Life Insurance Com
pany. The aggregate sales Of in
5urance latS year broke all records
The new year already is making 4
'fine showing and, while no one can
tell how great the volume of in
surance will be. the chances are that
1924 will see extraordinary activity.
Life insurance in its present form
- to a large extent an American in
ventfon, for while such protection
has been available for many years,
the most popular forms Of insurance
row in demand are of American
origin. Life insurance never before
had such d strong hold on the pub
lie, for many now recognize 1t as a
basis for credit and welI-to-do men
now are taking special policies to
cover the burdensome inheritance
taxes with which their heirs are
confronted as soon as the usual
transfers have to be made"