The Waterbury Democrat., 1932-04-04
Lonergan Explains
Position On Tax
Votes to Protect Connecticut Tobacco and Munitions
Makers Here

The munitions and tobacco in
dustries, essential factors in the
commercial life of Connecticut and
Massachusetts, were discussed to-
day in speech by Congressman
Augustine Lonergan, democrat of
Connecticut, which appeared In the
Congressional Record of April L.
In conference with the ways and
means committee here the Con-
necticut congressman succeeded IN
keeping from the current revenue
bill proposed further taxes on pis-
tolls and revolvers. He opposed
also an amendment which tended
to favor tobacco growers who are
members of cooperative growers
associations or pool of tobacco
growers. The latter measure, pro-
posed by Congressman Nelson of
Wisconsin would have proven de-
trimental to Connecticut and Mas
sachuetts farmers.
Mr. Lonergans speech was in
part as follows: e
For some time there has been a
10 per cent excise tax imposed on
sales of revolvers and pistols and
it is only justice that they are not
included for taxation, in the adopt
ed amendment to the pending bill.
The extent to which manufacture
ers of firearms were utilized by the
government during the late war Is
an indication of what a benefit 1t
was to the government to have ex-
listing and in operation industries
trained for the production by skill
ed workmen of some of the most
essential requirements of the war
department in time of emergency.
With the exception of SPRING
field Armory, where there Is a
small equipment for producing a
limited quantity of rifles, the gov
eminent does not have an arsenal
in which machine guns and small
arms can be produced. 1t would
be very expensive for it to main
tain similar arsenals as a reserve
measure, inasmuch as during the
period between emergencies adj
vances in the art are so frequent,
in fact, almost regular, that there
is not a suitable equipment which
remains static for any great length
of time. Changes in equipment,
designs. and methods are constant
ly talking place.
A plant could not be maintained
by private capital dependent upon
return on investment from govern
ment business alone. Private in
dustry in the arms business is
largely dependent for maintenance
upon domestic, commercial, and
foreign business. The war and
state departments are familiar with
this fact and 1 believe recommend
the wisdom of leaving such indus
try untrammeled- in it's effort to
procure such business SO long as
it is taken in markets and with
customers whose operations are
not a menace to the welfare of our
government policy.
1t Is from the profits on business
other than that coming from our
own government that new develop
ment is encouraged and carried on.
without this development the gov
eminent would have to create and
maintain development laboratories
that would be an additional heavy
burden upon the taxpayers. Each
additional restriction against sales
being permitted to the private in
dustry tends to stifie the industry
and cripple what are in realty val
liable adjuncts to the war depart
ment.
The tax on tobacco for the year
ending June 80, 1880, amounted to
$450,339,9s0.50. The production, of
cigars has been on the declining
scale for a number of years. While
this decline may be attributed in
part with changing habits of con-
sumers it probably has been accen-
tuated in the past year by reduced
purchasing power of consumers
and declining prices in general.
The reduced consumption of cigars
therefore may /. be regarded as q
| factor in the low prices received
by growers