Year: 1872

,yoov rrv sppcr.1 CORRESPONDENT or TIB TRBUNBl


RrcunoNp. Va. July 1.-The tobacco busl-
ness i'm Virginia is Just beginning 10 recover Iro 'no
stagnation caused by the six months tAefg Vi te 'N
law nat Congress INDUCED In at s last session. AslohB
"a bere was no certainty what the new rates OF taxation
vould he consumers purchased only n rev weeks sup
~ o,d rho manufacturers either obliged to close
ther facores entirely TO greatly reduce their working
force so s TO do no than I'll the small orders they
received for immediate consumption Congress, with It's
usual OF the interests ofbusiness delayed tho
final settlement the question until the last days OF the
session although the agitation for reduction was be-
Gun IN December and all the facts necessary for de-
con were laid before the Committees before the end OF
The winter 1t came 10 be well understood meanwhile


that there would be some reduction and some important
changes in the methods OF collecting the tax but what
the changes would be- how far the reduction would
60 no one coud predict The result was that the DUST
ness was parayZed and great loss resulted 10 inc
manufacturers and considerable suffering to the work
people who were thrown out Of employment at season
Of the year when there was nothing they could turn
their hands 10 for makeshhL uh.i
the factories should resume business Iheir
troubles are not yet over, for few OF tho factories
ara running TO their full capacity There is good reason
however, hope for speedy revival OF traue' anu no
factory owners putting their buildings ana nacioiy
in readiness and expect early orders that will busy then
the rest OF the year to I'LL


There is general satisfaction expressed with the new
ratio of tax OF course peases the makers OF cho"ins
tobacco who under the old law paid 80 cents per pound
and now pay but 20. The smoking tobacco mahuIactu
rers are not naturally as well satisfied Their article was
faxed hut 6 cents before taxed 20 by the new law
They do not grumble very much, however uNe us
uniformity and certainty Of tax and we VIII hot COM
| plain" is the general sentiment expressed pS al
manufacturers 1t is the constant changes IN inc reVe
nue laws which ruin u.s." said of the manufacturers
To me- All that we ask of Congress Is TO fix the rate
OF tax at some figure and then let 1t stand until IL Is re-
moved entirely. 1t disastrous to us to have IL over
hauled every Winter" Another manufacturer saiu :
The plug makers made effort for reduction iast WI"


ter not so much did not want to pay the ~
cents as because there manifest injustice III taxing
our product double what levied on smoking tobacco
We tried for s cents but we are entirely satisfied with
| what got"


oWll there not be another effort made next Winter
| 10 get the tax down low as 16 cents Y inquired


There is some little talk of It," he replied but hope
| it will he abandoned. 1t would hurt us mere tnah
| beneft u.s. All that we want is to be assured that
Congress will let us until the tobacco tax can
be taken of altogether. which don't reckon VIII De III
| our time"


This gentleman made a sensible argument upon the in
Justice of taxing tobacco, while exemptiDg all other
agricultural products He said: Tobacco is the great
agricultural staple OF Virginia 1t Is the only crop we
can raise with profit large part of the state III Is 10
our farmers what aud wheat are TO the farmers OF
| ulinois-their main dependence Now, why should our
| stape be heavily taxed by the General Government
while that OF Illinois do ms pay cent OF tax Tobacco
is beside a manufactured article. Why put taxes on
the men who manufacture IT, and not on the men VINO
grind wheat into -four who mako cloth from cotton OF
WOOL We are working up farm product just as lhuch
| as the mers and weavers. Where's the justice IN t'


The only answer to this argument of course some
thing about taxing uxuries to which the MANUFACTURER
replied Tobacco Is not luxury to us here in virginia
who raise it and up. 1t is the only thing wohaYo
! cot to make living out OF"


But the tax comes out of the consumer in the end
| suggested "Not altogether" he replied " 1t limits
consumption and fetters trade and is, therefore, bur
den upon both the planter and the manufacturer"
| "Do you think the consumption Is any less than IL
would be without the ~ mo question about that


the higher the price of article is the less of it will be
used That's a law that holds good for everything.
When food is people eat less, and the consumption
of an article that is not prime necessity is diminished
to much greater extent by high prices"


"How does the present tobacco product compare in
quantity with that before the 7" asked 1t falls
very far short. Wait mOment-here the figures"
taking from bis drawer the annual circular prepared by
the Tobacco Exchange =. Our tobacco year begins on
the st OF October In the year 1s596O as you see by
this statement the total inspections in the State were
7G53 hogsheads Last year there were but 66C6 hogs'
heads Our shipments In 18596O were 34O75 hogsheads,
while they last year only 271l. The product has
steadily increased since the war; however, except III
1870 which was a bad year" He did not attribute the
decreased production since the entirely TO the tax.
| That had something to do with It, he thought but the
| chief cause was the DISCRIMINATION OF labor. The
negroes did produce much they did in the con-
dion of Slavery, he said While few were industrious
and provdeDt the ind0ent and worked IT.
regularly only caring to barely enough to live upon


The manufacturers all express great indignation at the
recent decision of the Commissioner OF Internal Rev
enue in relation TO the tax on tobacco in bond The
Commissioner it will be remembered decided that all
tobacco bonded after tho 9th OF june the date Of the
passage of the law and before the st july when
the new rate goes into effect must pay the old rate al
though tobacco which bond the 9Th Of June Is
by express provision Of the law allowed to be released
upon payment of the rate only The decision struck
all who had no interest in it absurd senseless, and
unjust. The men who suffer by IL use stronger terms
than these in denouncing it, They at loss to
count for ruling devoid OF any show Of reason
Justice and many fall back upon this expanaon that the
Revenue takes pleasure in annoying and Oppress
ing them and delighted finding omission in that
| law which gave good an opportunity OF nficting
trouble and pecuniary loss upon the manufacturers.
The tobaccOmen have naturally great love for the
Internal Revenue system and its officers and perhaps do
not always put the most charitable construction upon
the acts and decisions OF these officers III this they
have at least show OF reason for II Is difficult TO
ceiye Of any rational explanation OF the extraordinary
decision of which they complains 1t is evident that Con-
| gress never intended, while giving people who put
tobacco bond prior to the passage OF the law the
benefit of the reduced rates established by that law
that those who bonded their tobacco after the passage Of
the law should be forced TO pay the old high rates The
validity Of the ruling will be contested in the Courts,
and the declsiowl unquestionaby be on the side Of
the manufacturers but, in the time, those who
bonded tobacco before the Commissioner made his
ruling either let it remain until the Courts act
| OF suffer loss of 70 cents on every pound.


Richmond, Lynchburg Danyille, and Farmvile are the
great tobacco manufacturing towns Of Virginia. and to
one of these places nearly all the tobacco raised in the
State goes for manufacture for shipment in the leaf
III I'm cd