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condition is it bought? It is not cut for the trial interests of the country, many of them the other reductions in taxes made by the bill, purpose of smoking. It is not manufactured now heavily taxed. The able chairman of the would have produced $75,000,000 annually, if in any way. Step into any little grocery store Committee of Ways and Means [Mr. Morrill] the present law had continued in force. But in the West and ask for smoking-tobacco and || has furnished us an exhibit and an estimate of I cannot now enumerate the changes in detail. the keeper produces a roll of ordinary leaf the workings of the entire revenue system, as While I am free to concede the great imtwisted up, weighs it out and hands it over the follows:

provement which this bill will introduce in our counter at ten cents a pound. It is carried

Treasury receipts for fiscal year ending June 30, 1865. revenue system, I desire to point out briefly away by the purchaser and cut at his own Customs.

$84,928,000 some changes in the bill which it seems to me house with a common knife or rubbed to pieces

Internal revenue................

209,461,000

should be made. Miscellaneous...

35,175, 126 and smoked, and no revenue whatever is

The law now in force levies a tasderived from it. The effect, therefore, of the Total receipts, exclusive of loans........$329,567,126 "On all cigars, cheroots, and cigarettes, made existing law, or of any law which charges more

wholly of tobacco, or of any substitutes therefor, ten Estimated Treasury receipts for fiscal year ending June than something like ten cents a pound upon

dollars per thousand cigars. 30, 1866.

On smoking-tobacco of all kinds, and imitations this product, will inevitably prevent any reve. Custom receipts to April 1, 1866, (actual)

thereof, not otherwise herein provided for, thirtynue, and at the same time deprive the people (coin).....

$128,967,375

five cents per pound. of the advantage of the use of it in this country. Internal revenue to April 1, 1866, (actual) 213,890,518

On smoking-tobacco made exclusively of stems, [Here the hammer fell.] Miscellaneous (actual) premium on gold,

and so sold, fifteen cents per pound.” &c.........

37,183,309 Mr. MORRILL. I have no question but

There are other provisions affectingimported, what it is the purpose of the House to leave Actual aggregate receipts to April 1.... 410,011,232

New England, and southern tobacco, but as the law so that we shall obtain a large revenue Estimated custom receipts, April 1 to

they do not materially affect western tobacco, June 30..

30,000,000 from this source, but I very much doubt whether Estimated internal revenue, April 1 to

I do not propose to allude to them now. The when we get through with this bill the law will

June 30.......

60,000,000 bill now before us changes the present law as

follows: be such as to accomplish that object. As it

Estimated miscellaneous, April 1 to June

1,500,000 now stands the law is more effective than we

On smoking-tobacco of all kinds, including that have ever had.

made of stems or in part of stems, and imitations We are receiving a larger

Total aggregate receipts from all
sources for the fiscal year ending

thereof, a tax of twenty cents per pound. amount of revenue than we have ever before

June 30, 1866.....

$501,541,232

On cigarettes, or sunall cigars, made of tobacco, received from this source. The present law in

inclosed in a wrapper, or binder, and not over three

and a half inches in length, the market value of relation to this particular article perhaps is | Estimate of receipts for the fiscal year ending June which (tax included) is not over six dollars per thonsomewhat oppressive in this: that the manufac

30, 1867.

sand, a tax of two dollars per thousand; when the Customs

$125.000.000 turers are not able to dispose of their stems,

market value is over six dollars and not over ten Internal revenue..

260,000,000 dollars per thousand, (tax included.) and on cheroots, and these to a large amount are now on hand. Increase on cotton.

15,00100 apd cigars known as short-sixes, and on any cigars And in order to accommodate the trade and not

Increase on spirits..

15.000.000 made with or without pasted or twisted beads, the Miscellaneous

10,000,000 to be oppressive in any quarter, the committee

market value of which (tax included) is not over ten

dollars per thousand, a tax of four dollars per thouhave, after hearing gentlemen from all parts of

425,000,000 sand. the country, West as well as North and South, Requirements of the Secretary of the

On all other cigars, cheroots, and cigarettes, made Treasury...

350,000,000 come to the conclusion that it would be better

wholly of tobacco, or of any substitute therefor, a

tax of ten dollars per thousand. to fix the tax so as to embrace smoking-tobacco Available for reduction of taxation... $75,000,000 in one description, so as to include stems or

* My colleague [Mr. SCHEXCK] proposes to not, as the parties might choose, and let the

The internal revenue for the fiscal year end

amend this by levying ten only instead of twenty price regulate that matter. As 'the law now ing June 30, 1867, if the present revenue laws cents per pound on smoking-tobacco and imistands the tax on smoking-tobacco of all kinds should continue in force, with the proposed in

tations thereof, and by striking out the provisand imitations thereof, not otherwise provided crease on cotton, is estimated at $260,000,000. ions as to cigarettes and cigars, and by insertfor, is thirty-five cents per pound. On smoking. The bill now under consideration is designed ing in lieu thereof a provision as follows: tobacco made exclusively of stems it is fifteen to reduce this $75,000,000, and to that extent On cigarettes or small cigars made of tobacco, cents a pound. The committee came to the relieve mechanical industry, employments, and

inclosed in a wrapper or binder and not over three

and a half inches in length, and on cigars made with conclusion, after a long and patient investiga- || labor from the burdens which now to some

twisted heads, the market value of which, exclusive tion, that to impose one rate was better for all extent oppress them.

of the tax, is not over six dollars per thousand, a tax interests and perhaps might give the Govern- A few illustrations will show this. By the || of two dollars per thousand.

On cheroots and cigars known as short sixes, and ment an equal amount of revenue. They therelaw as it now stands a tax is levied as follows:

cigars made with pasted heads, the market value of fore agreed upon the rate of twenty cents per “On ready-made clothing, boots and shoes, gloves. | which, tax included, is not over twelve dollars per pound instead of thirty-five, only five cents

mittens, and moccasins, caps, hats, and bonnete, or thousand, and on all cigarettes and cigars, the marother articles of dress not otherwise assessed and taxed

ket value of which, exclusive of the tax, is over six more than it now is on smoking-tobacco made as such, for the wear of men, women, or children, six

dollars and not over twelve dollars per thousand, a exclusively of stems, and fifteen cents less than per cent. ad valorem : Provided, That any tailor, boot tax of four dollars per thousand. under any other provision in the law as it now or shoe maker, bat, cap, or bonnet maker, milliner, or

On all cigarettes, cheroots, and cigars, tho market stands. We believe that that will be satisfacdress-maker, exclusively engaged in manufacturing

value of which, exclusive of the tax, is over twelve any of the foregoing articles to order as custom work

dollars and not over twenty dollars per thousand, a tory. Certainly, if we expect to derive any con- and not for sale generally, who shall make affidavit

tax of ten dollars per thousand. siderable amount of revenue, it ought not to be

to the assessor or assistant assessor, that the entire On all cigarettes, cheroots, and cigars, the market

amount of such manufactures so made does not ex- value of which, exclusive of the tax, is over twenty reduced below that. ceed the sum of $1,000 per annum, shall be exempt

dollars and not over forty dollars per thousand, a tax The amount of revenue received from all from duty,'

of twenty dollars per thousand. kinds of tobacco in the three quarters of the The bill now under consideration changes all

On all cigarettes, cigars, and cheroots, the market

value of which, exclusive of the tax, is over forty present fiscal year is almost nine million dol- this and reduces the tax as follows:

dollars per thousand, a tax of forty dollars per thoulars. The amount received for the whole of the

sand.

On boots and shoes, two per cent. ad valorem ; to year 1865 was only $8,000,000, and in 1864 be paid by every person inaking, manufacturing, or The tobacco raised in Ohio and other west$7,000,000, showing that the law as it now

producing for sale boots and shoes, or furnshing the
materials or any part thereof, or employing others

ern States generally known as "seed-leaf" is stands is better at any rate than any laws here. to make, manufacture, or produce them: Provided, used mainly for smoking-tobacco (cut and dry) tofore enacted. I trust the committee will reach That any boot or shoe maker making boots or shoes and common cigars. It is not employed in the the conclusion that we ought not to change this

to order as custom work only, and not for general
sale, and whose work does not exceed annually in

manufacture of chewing-tobacco or fine cigars, provision as reported by the Committee of value $1.000, shall be exempt from tbis tax.

which are made from the more expensive HaWays and Means.

On ready-made clothing, and on gloves, mittens, vana and Connecticut tobacco. The present

moccasins, caps, and other articles of dress for the
MESSAGE FROM THE SENATE.
wear of men, women, and children, not otherwise

law was not only oppressive but ruinous and The committee rose informally for the purassessed and taxed, one per. cent. ad valorem; to be

destructive to the growth and manufacture of paid by every person making, manufacturing, or propose of receiving a message from the Senate,

western tobacco. The reason of this is preducing for sale clothing, gloves, mittens, moccasins, by Mr. Forney, its Secretary, informing the caps, and other articles of dress, or furnishing the

sented in a preamble and resolution of the House that the Senate had passed House bill materials or any part thereof, or employing others to

General Assembly of Ohio, adopted February make, manufacture, or produce them: Provided, That No. 85, for the disposal of the public lands for

13, 1866, as follows: any tailor, or any maker of gloves, mittens, moccahomestead actual settlement in the States of sins, caps, and other articles of dress to order as cus

"Whereas by enactment of the Congress of the last Alabama, Mississippi, Louisiana, Arkansas, tom work only, and not for general sale, and whose

session, the

excise upon cigars is levied at the uniwork does not exceed annually in value $1,000, sball

form rate of ten dollars per thousand; and whereas aud Florida, with an amendment, in which he be exempt from this tax; and articles of dress made

this rule compels Ohioseed-leaf-worth in the market was directed to ask the concurrence of the or trimmed by milliners or dress-makers for the wear

ten cents per pound--to pay a tax of four hundred House. of women and children shall also be exempt from this

and fifty per cent. ad valorem, while Connecticut to

bacco-the market price of which is twenty cents per Also, that the Senate had passed, without

pound-pays only two hundred and twenty-five per amendment, House bill No. 193, for the relief

Then by this bill there is a large list of arti- cent., and inported llavana tobacco-rated at $1 50

This

cles entirely exempt from taxation. of Mrs. William L. Herndon.

per pound - pays only thirty-three per cent.; and exemption will give great satisfaction to the

whereas this discrimination against the product of TAX BILL-AGAIN.

Ohio and other western States has cut off the demand people and encouragement to productive in- for and if continued is likely to put a stop to the Mr. LAWRENCE, of Ohio. I move to amend dustry. Among these are plows, cultivators, growing of tobacco in these states and whereas this the amendment by inserting " five cents." harrows, straw and hay cutters, planters, seed

rule levies the heaviest per cent. of taxation on that

kind of tobacco mainly used by the class least able drills, horse-rakes, winnowing-mills, and many to pay, and touches butlightly the bigh-priced luxury amend the internal revenue laws of the United 1 others, generally articles of necessity or the of the richer class: Therefore, States in many respects, and especially to fur- | products of mechanical industry. These arti

* Be it resolved by the General Assembly of the State

of Ohio, That the present rule of assessing tho internislı relief to the great mechanical and indus- ll cles, heretofore taxed, but now exempt, with nal revenue on cigars is unequal, unjust, and oppresse

tax.

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ive to the agricultural interest of this State; and that mention that, by the same change, that tax on Con- | cigars of western tobacco as the finer cigars of our Senators and Representatives in Congress be, necticut and Havana cigars was reduced at fifteen Connecticut tobacco. This unequal tax will and hereby arc, earnestly requested to use their in- dollars, and Connecticut seed leaf went up from fluence to secure such a change in the law as shall eighteen and twenty-two to thirty and thirty-five."

enable eastern manufacturers to sell the finer lovy a tax ad valorem, or such other modification as in their judgment will remove the objection herein

The present bill is a great improvement on

cigars so nearly the price of those made of urged against the present law." the law as it now stands; but if the tax of

western tobacco that common cigars of west

ern tobacco will be driven from the market, or The result of the law has been that as it | twenty cents per pound on smoking-tobacco is requires nearly the same labor to make a thou- | levie it will with the cost of the raw material

produced only to be consumed unmanufacsand cigars from tobacco of high or low price, and of manufacturing so enhance the price to tured, or cut and dry, or exported at ruinous

rates. Will any gentleman tell me why this while the tax is the same on all alike, the lat- the consumer that the leaf in its unmanufac

discrimination should be made against western ter or western tobacco is effectually driven out tured state will be largely consumed by many, of the market. and it will so approximate the price of cigars

or low-priced tobacco ? Or why should comThis is by no means an insignificant branch that smoking-tobacco will be comparatively

mon cigars pay as much tax as the fancy "ciof industry. The report of the commissioner driven out of the market. For the interests of

garettesor the cigars "inclosed in a wrapof statistics of Ohio for the year 1864 shows a the revenue and of the producer, the manufac

per or binder?"! The amendment proposed by product of tobacco as follows: turer and the consumer, I will urge the first

my colleague will remedy all this inequality. County.

It proposes to adopt the rule of equality by Pounds. amendment proposed by my colleague, [Mr.

classifying cigars and thus approximating an Montgomery.

7,720,223 SCHENCK.] Belmont 2,248,911

ad valorem tax. It will tax common cigars Brown......

2,681,503
I am aware that a reduction from thirty-five

two dollars per thousand; a liner article four Clermont .......... 1,066,756 cents, the rate now fixed by law, to twenty

Still finer classes reGreene... 1,319,943

dollars per thousand. cents, as proposed by the bill, is an improveMiami

1,045,154 Morgan..

spectively ten, twenty, and forty dollars per 1,761,569

ment, but the rate proposed by my colleague of Monroe

thousand; these last classes being generally 3,361,603 ten cents per pound is decidedly preferable. Noble.

manufactured by Havana fillers and Connect4,399,168 This is absolutely necessary if we would perPreble. 1,114,029

icut wrappers. mit the use of western tobacco in the manu

The general scope of the Warren.

1,400,516 Washington..

amendment is to protect the home article and 1,546,516 factured state, cut and dry for smoking.

to give the western product a living chance Butler.

887.441

But the present law, so far as it relates to Darke. 528,199

along with the eastern. Guernsey.

869,282
common cigars, is equally destructive to the

There are some other particulars in which I Hoeking.

334,194 production of western tobacco. Under the presShelby. 321,421

hope the bill reported by the committee will be ent law the tax per cent., as paid by three Highland.

242,415 Lawrence. distinct kinds of tobaccos, is as follows, allow

changed, though I cannot advert to them all 268,512 Athens...

now. It proposes to tax manufactures of fax, 633,370 ing twenty pounds of tobacco for one thouAshtabula... 283,695 sand cigars: twenty pounds Havana, at $155, The manufactures of flax, jute, and hemp are

hemp, jute, and silk five per cent. ad valorem. Hamilton.

119.203 The third congressional district raised. 1:11,121,209 equals thirty-one dollars, which, at ten dollars tax, is equal to thirty-three per cent.; i wenty

in their infancy and cannot bear tax at all. A Totai in State.........

tax is equivalent to their destruction. The pro.37,022,323 | pounds Connecticut, at twenty-two and a hali

duction of flax and hemp is one of the agricents, equals $4 50, which, at ten dollars tax, There are a number of other counties that

cultural interests of the West which should not is equal to two hundred and twenty per cent.; produce large amounts.

be destroyed by taxation, but ratherencouraged. twenty pounds New York, Pennsylvania, and One of the most intelligent men 'of my dis

Silk is a luxury and can bear a tax higher than Ohio, at eleven cents, equals $2 20, which, at trict, who fully understands this subject, writes

ordinary articles which enter into daily con-. ten dollars tax, is equal to four hundred and fifty per cent.

sumption. By this bill diamonds, emeralds, "Your own district loses money to the amount of I object to the present law so far as it relates

precious stones, and jewelry are only taxed five $200,000 this year by this single enactment, while

percent., while thread, candles, leather, screws, Ohio, Indiana, Illinois, and Michigan, all States that to western tobacco, because-

and many other articles are taxed an equal grow low-priced tobacco lose millions of dollars. 1. It is unjust in principle. Western tobacco Give us an ad valorem tax on cigars, and immediately is worth from six to eleven cents per pound,

rate. This, in my judgment, is wrong. Let the low-priced tobacco of the West (now excluded by the product of New England and the South, which while Connecticut is worth twenty-two. To

diamonds, jewelry, and all articles of unneceshave had a common interest) will como into iparket. require the same tax on all alike is a discrimi

sary ornament or luxury bear at least double Now it is rotting in our fields and tobacco-houses.

the tax if not still more, as I would make it, nation against the low-priced article. “More than this, the Government, by this change.

than that imposed on articles of ordinary conwill get more revenue, because the amount of cigars

2. It has operated practically to destroy the

sumption or necessity. consumed will be much greater. Now low-priced product of western tobacco. cigars, always used in the greatest number, are almost The Ohio association, before referred to, in

By the present law the tax on incomes over excluded, but under an al valorem tax thcy will again their memorial say:

$600 and under $5,000 is five per cent., and be freely manufactured and largely consumed.”

on incomes over $5,000 the tax is greater. One effect of the law has been that large The particular depression for which we think the

The bill now before us levies one uniform rate law clearly responsible relates to Ohio seed leaf and amounts of western tobacco have been used for Kentucky lugs. By making the tax on all grades

on all incomes over $1,000. I have two objecsmoking in the leaf unmanufactured. In this of cigars ten dollars, cigars made of Ohio sced leaf, tions to this. I would tax incomes over $5,000 form it has been sold and extensively con

which were dear before at thirteen dollars, had seven
dollars additional tax put on tbem, and with it a

greater than those of a less sum. The discrimsumed, thus affording no revenue to the Gov- complete extinguisher on their sales. And as the ination is founded on the greater capacity of ernment. An ad valorem tax properly adjusted manufacture of these cigars furnished demand for the wealthy to pay and not on any hostility to would permit the manufacture into cut-and-dry smoking-tobacco, and thus a large revenue

with the destruction of this trude almost ali Jennandi | capital. The amount of income exempt from for Ohio ceased, and not one case of Ohio seed has

tax should not be fixed at a uniform sum but would be derived. The Tobacco Cutters' As- been used since, where before a bundred found con- should depend on the number and age of chilsociation, of Michigan, in their memorial to sumption; and prices of tho article went down ac- dren each head of a family might have to sup

cordingly." Congress say :

"The inequality and injustice of this tax is readily port. The exemption is designed for the sup: "From facts ascertained, we find that farmers and

scen, and were it not for the fact that all sales of Ohio port of families, and the amount of it should others have been (owing to the high price of smoking

seed, for home consumption, had entirely ceased, caused in consequence of the high rate of tax) largely perhaps our people, with their boundless resources,

be made to depend on the number of the family: engaged in growing and preparing tobacco for their might still rest satisfied, making a virtue of neces

A man like John Rogers, with “nine small own use, thereby lessening the amount of revenue the şity, change their farm products, let their tobacco children and one at the breast,"' needs and Government would otherwise derive from that source, houses go to destruction."

should have a greater sum exempt than one besides tending, in a great degree to injure the busi

3. The destruction of the western product || who has rendered the country no such serness of the manufacturers.'

diminishes the national revenue from tobacco. And the effect of the law has been well

vice and has no equal need for income exempt. • It will be seen the bill of the Committee of There are some axioms of political economy described by the memorial of an Ohio Tobacco Growers' Association, as follows:

Ways and Means proposes to remedy the in- | which should not be overlooked. Taxation

justice of the present law by levying a tax should mainly be levied upon wealth realized "In addition to this unhappy feature in the present law, an equally injurious change was madoin making

of four dollars per thousand on all cigars the in the form of property or incomes rather than the tax on smoking, cut of stems fifteen cents, while market value of which, tax included, is not upon the sources of productive wealth, the on all other kinds thirty-five cents was placed. By over ten dollars per thousand, and on all other means by which wealth is created. Hence it this unfortunate stroke, all smoking cut out of anything else than stems, was effectually prohibited, and

cigars a tax of ten dollars per thousand. Only || has always been regarded unwise to cast onerall home demand for lugs and common Ohio seed two grades of tax are proposed.

ous burdens on useful labor or industry in any out of which the article had been cut before, was Now, let us inquire what will be the effect killed; and cutters, that before run from one to three

form, upon the mechanic, the producer, the machines, and used from one to three hogsheads of

of this. Cigars made of Connecticut tobacco artisan, and the laborer. A tax upon the imluss per day in smoking, have not run a machine or will cost less than ten dollars per thousand plements or products of useful labor discourcut a hogshead since, and are now accumulating much capital of unavailable 'shorts' that necessa

and will pay a tax of four dollars per thousand. ages industry and impairs the production of rily grow out of the making of chewing-cut. By

Cigars made of Ohio and other western tobacco wealth. The necessities of a nation may be these changes in the previous law, seed leaf declined will cost less than ten dollars per thousand such as to require a resort to taxes of this from cightcen and twenty cents to six and eight, and lugs from eleven and thirteen to six and seven, en

and they will pay a tax of four dollars per description to a limited extent, but when this tailing losses on the districts producing these styles

thousand. · Western tobacco worth from seven may be so they should be levied with great and grades of several million dollars. Homedemand to ten cents per pound will pay as much tax discrimination. being thus cut off, our growers of the styles named as Connecticut worth twenty-two. The tax will There is a class of products which may, under were bound hand and foot, and turned over to the tender mercies of Europe for a market.

fall on the producer mainly, for it will require these or other circumstances, be properly taxed, “As a set-off to this picture of depression, we merely Il nearly the same labor to manufacture common and sometimes heavily taxed. Mere articles of expensive luxury or indulgence, from which the Government. Besides, we shall get a twisted heads, the market value of which (tax inEngland derives the larger part of her revenue, | larger share of revenue in this way. Accord- cluded) is not over eight dollars per thousand, a taxof may be appropriate subjects of taxation. This ling to statisties the production of tobacco in

two dollars per thousand; when the market value is

over cight dollars and not over twelve dollars per bill has kept these principles in view, and though this country in 1865 was one hundred and thousand, (tax included,) and on cheroots, and cigare by no means perfect, it is a great improvement eighty-five million pounds. Deducting two known as short-sixes, and on any cigars, the market

value of which (tax included) is not over twelve dolupon the law as it stands, and with the modi- | thirds as the amount exported, the revenue

lars per thousand, a tax of four dollars per thousand. fications which time and experience may sug- from this source at twenty cents per pound

The amendment was agreed to. gest, will contribute much to wipe out an im- would be $12,000,000, or $1,000,000 more mense national debt entailed upon us by treason,-1) than is received under the present mode of

Mr. SCHENCK. For the paragraph as now rebellion, and traitors, their aiders and abet. | taxation. The revenue commission claim that

amended we are very thankful, so far as it goes, tors. As the people annually make their con- the revenue hereafter by the present system

because so far as it does go it rights a great tributions of national taxes let them remember || from tobacco will be $18,000,000 annually;

wrong. But still, as it is not sufficient for all that traitors and their allies rendered them but that is a mere guess. I have only to say

the purposes of justice, I will move to strike necessary, and let them at the polls see to it that if we can obtain such a sum by that sys

out this paragraph as amended, and substitute hat they shall no more be intrusted with tem it must be upon a far greater number of

the following: political power.

pounds of tobacco than was raised last year. On cigarettes, or small cigars, made of tobacco, I withdraw my amendment to the amend- || In the year 1860 there were produced in this

inclosed in a wrapper or binder, and not over three

and a half inches in length, and on cigars made with ment.

country four hundred million pounds oftobacco, twisted heads, the market value of which (exclusive The question being taken on the amendment | upon which, under the amendment I have pro- of the tax) is not over six dollars per thousand, a tar offered by Mr. Scheck to strike out "twenty | posed, there would be obtained a revenue of

of two dollars per thousand.

On cheroots and cigars known as short-sixes, and cents! on smoking-tobacco and insert “ten | $28,000,000.

cigars made with pasted heads, the market value of cents," no quorum voted.

Who, then, will object to this species of tax? which (exclusivo of the tax) is not over eight dollars Tellers were ordered ; and the Chairman | It is said the opposition comes from the to

per thousand, and on all cigarettes and cigars, the

market value of which (exclusive of the tax) is over appointed Messrs. Schenck and Ancona. bacco-growers, and on account of this interest six dollars and not over twelve dollars per thousand, The committee divided; and the tellers and the fear of seeming to levy any tax on the

a tax of four dollars per thousand. reported—ayes 48, noes 46. producers we must desist. Toa similar objcc

On all cigarettes, cheroots, and cigars, the market

value of which (exclusive of the tax) is over twelve So the amendment was agreed to.

tion when the cotton question was under con- dollars and not over twenty dollars per thousand, a Mr. MYERS. I offer an amendment to come sideration the distinguished chairman of the tax often dollars per thousand, in after all these paragraphs. committee replied that the tax need not be

On all cigarettes, cheroots, and cigars, the market

value of which (exclusive of the tax) is over twenty The CHAIRMAN. There is but one para- paid by the planter; the cotton may be removed dollars and not over forty dollars per thousand, a tax graph under consideration at this time.

from one collection district to another in bond of twenty dollars per thousand. Mr. MYERS. Then I offer it to that. I and the duties or tax will thus be practically

On all cigarettes, cigars, and cheroots, the market

value of which (exclusive of the tax) is over forty move to strike out the paragraph and to insert paid by the purchaser. Under my amendment | dollars per thousand, a tax of forty dollars per thouin lieu thereof what I send to the desk. the manufacturer will virtually pay the tax on

sand. The Clerk read the amendment, as follows: it when he removes it for consumption. Then I had the honor of having printed some time That on and after the 1st day of July, 1866, in lieu tobacco-growers are in the ruts of usage, and ago an amendment to this bill, which was sub. of the duties on manufactured tobacco and cigars must be educated to know their own interests. stantially the same as the one I have just now imposed by the several acts to provide internal Nor can the consumer find fault; the duty offered, except that I have changed the rate revenue to support the Government, there shall be paid by the producer, owner, or holder, upon all

falls on him in either instance, and if no higher and made it exclusive of the tax instead of tobacco produced within the United States and upon it is no matter to him whether it be levied be- inclusive of it. I found that by following the which no tax has been levied or collected, a tax of tween its growth and manufacture or after- idea introduced by the Committee of Ways and twenty cents per pound upon the said tobacco in the leaf or unmanufactured; and such tax shall remain

ward; but the consumer really pays much less Means, and making the price inclusive of the a lien thereon and be levied and collected as pro- by this levy of twenty cents a pound on the tax, it would involve us in this absurdity: for vided for in this act in the case of cotton; that raw tobacco.

instance, when the price of cigars is made up all tobacco of domestic growth shall be bonded in Government warehouses, and shall be weighed and

The revenue commission state that 42,809.18 by including the tax, by imposing a tax of marked, and on permits given, as in the case of cot- | pounds of tobacco, " at the present rate of twenty dollars a thousand on cigars over twenty ton, may bé removed from the district in which it has been produced to any other district without pre

excise, would return an annual revenue of dollars a thousand, you would include the cigars payment of the tax due thereon upon the execution

$15,736,795.” At twenty cents per pound the originally costing six dollars a thousand in the of bonds or giving security, as shall be prescribed by consumers would pay but little over $8,000,000, higher classes. But the whole matter is inade the Secretary of the Treasury: Provided, That thero shall be an allowance or drawback on all tobacco

and even adding twenty-five per cent. for losses fair by leaving the tax entirely ont of the comequal in amount to the duty paid thereon, and no

in the manufacture only $12,000,000, the addi- putation of the price, and making the tax rest more, when exported; no drawback, however, to be | tional tax being necessary under the present upon the price of the cigars exclusive of the allowed for such duties if less than ten dollars.

system to make up for the amounts which es- tax, and while the same result is arrived at Mr. MYERS. Mr. Chairman, in the last cape the tax. The manufacturers are nearly we are not involved in the absurdity I have Congress I stood almost alone in the advocacy || prostrated at present and ask for redress. The

stated. of a tax such as I have proposed by this amend- || legitimate consumption of tobacco is not more Now, sir, to go back to the subject and purment. In the present Congress upon my mo- than half what it was, Government being a loser pose of this amendment generally, I might tion a resolution was adopted instructing the equally with the honest manufacturer. The repeat to some extent what I said before in Committee of Ways and Means to report upon | Louisville Board of Trade reported sales of regard to smoking-tobacco. It is needless, the expediency of such a tax. Now, sir, I but 35,112 hogheads of tobacco for the first ten however, to do so. It is sufficient to state that have scarcely a hope that such an amendment | months of 1805 against 63,332 for the same by the existing law, putting all upon a dead will pass this House with the committee against months of 1864. For the year 1865 the de- level, making all cigars pay ten dollars a thouit, but I think it due to the manufacturers of

crease in the returns of chewing-tobacco was sand, you have utterly crushed out the whole tobacco in the United States, who have held fifty-eight per cent., and of smoking-tobacco western interest in the production of tobacco conventions in all our great cities and unan- sixty-two per cent., and all this time many thon- and its manufacture into cigars. I live in Day; imously asked that this tax may be made spe. sand employés have been thrown out of busi- ton, Ohio, a little city of some thirty thousand cific and uniform in order to protect the Gov

The excise on tobacco in the leaf is inhabitants. Before you put your tax on as ernment and themselves against fraud, that || found to work well in other countries and I you have done, we were making there nine their proposition shall not be passed by in || hope will yet be adopted here.

million cheap cigars.

Now we do not make silence. Mr. MORRILL. I trust the gentleman from

The whole interest has been destroyed. Mr. HOOPER, of Massachusetts. I would Pennsylvania [Mr. Myers) will not deem me

With the destruction of the interest in the manuinquire of the gentleman whether these were conventions of manufacturers or producers of || reply to what he has said. I will merely say ungracious or unkind if I do not take time to facture of these common twisted-head cigars,

the interest connected with the growth of the tobacco. Mr. MYERS. They were conventions of the

that I hope the amendment will not be adopted. tobacco has likewise been destroyed. In the The amendment of Mr. MYERS was not

district which I represent we raise nearly one manufacturers of tobacco. But it is no matter of whom the conventions were composed,

half of all the tobacco raised in Ohio; and the agreed to. if the tax they propose is just and if it will

The Clerk read as follows:

tobacco raised in that district, in that State, in

all the western States, in the Northwest, and enable the Government to get as much rev

On cigarettes, or small cigars, made of tobacco in-
closed in a wrapper or binder, and not over three and

in Pennsylvania, is a tobacco from which are enue as by the proposition of the committee.

a halfinches in length, the market value of which (tax manufactured cigars of this cheap character. Now, who is there to complain of a tax of included) is not over six dollars per thousand, a tax By imposing a level tax, putting the same the kind I have suggested? Certainly the

of two dollars per thousand; when the market value burden
is over six dollars and not over ten dollars per thou-

upon Government should not, for by this means the

the cheap cigars used by the poor sand, (tax included,) and on chcroots, and cigars man as upon the finest cigar made of ConnectGovernment would receive the tax earlier than known as short-sixes, and on any cigars made with icut or other leaf, you have crushed out comin the other way; and it would receive it more or without pasted or twisted heads, the market value of which (tax included) is not over ten dollars per

pletely the western interest; so that you are at surely, because there are not half as many thousand, a tax of four dollars per thousand.

present getting no revenue from us, while you avenues for fraud at the first production of the article as there are afterward. When it is in paragraph so that it shall read as follows:

Mr. MORRILL. I move to amend this

are at the same time depriving our people of

the opportunity of indulging this practice, which the course of manufacture the tobacco goes

I do not advocate myself personally, any more into the hands of thousands of operators, who

On cigarettes, or small cigars, made of tobacco inclosed in a wrapper or bindor, and not over three

than my friend from Oregon, (Mr. HENDERmako it up in out-of-the-way places and defraud and a half inches in length, and cigars made with son,] but which my people are interested in,

ness.

one.

because they cannot now obtain cigars at all am not a manufacturer of cigars, but deal in them values, it was, as a matter of course, necessary at a price within their reach. quite largely, and I noticed when we had the gradu

that there should be a vast amount of machinery ating tax that it made no difference what price wo Now, sir, my own impression is that it might || paid for the cigars the stamps were always the three suggested and perfected by experience, and put be better, if it were practicable, to levy your dollar stamp. I am opposed in toto to a graduating in force by well prepared regulations. But such tax upon the leaf. Without, however, a sys

tax. Whatever tax you put on have it uniform. It
you adopt the graduated tax you will make a mis-

machinery was utterly wanting. That system tem of domiciliary visitation all over the coun- take. I believo cigars will pay a ten dollar tax easier had to run alone, so far as regulations were contry and a numberless swarm of office-holders, than any other.'

cerned. It only ran three quarters of a year, you could not collect the tax if levied in that Now, gentlemen may suppose I am adher- and there was no perfection in the instrumen way. Therefore the Committee of Ways and || ing a little too closely to the bill in not allow- talities for working out its results. Means perhaps properly decided not to attempting or consenting to further exemptions and [Here the hammer fell.] taxation on the leaf. The next best thing, further reductions. Let me read a letter from Mr. LAWRENCE, of Ohio. The distinprobably, would be to levy your tax altogether a western collector. He says, in effect, that at guished chairman of the Committee of Ways ad valorem, making every cigar, everything | the next session of Congress we shall bave to and Means has reminded us that my colleague connected with this interest, pay taxation in go back to the old rates of taxation, and declares | [Mr. SCHENCK] adheres to all his purposes proportion to the value invested and the price our bill will produce much less revenue than is with great tenacity. Sir, it is a virtue that he at which the article might be sold. That not anticipated. He advises that we move slowly. || has learned, or might have learned, from the being done, I propose, by a system of grada- | He also says that the Commissioner is now chairman of the Committee of Ways and Means tion and classification, to reach as nearly as making a far less stringent enforcement of the himself. If the revenue commission had possible what would be something like an ad law this year than last, and that this will make made a report upon this subject of the taxavalorem duty. a wide difference in the revenue.

tion of cigars and tobacco, and if that report Gentlemen of the Committee of Ways and Now, Mr. Chairman, I am opposed entirely had been in accordance with the views of the Means and others connected with the legislation to the rate offered by the gentleman from Ohio, Committee of Ways and Means, I should have upon this subject say that you cannot resort to and to his whole system of estimating the hesitated somewhat before asking this commitan ad valorem duty for fear of the numberless amount of tax on the value of cigars excluding | tee to change it. But, as I learn from the chairfrauds which will be committed. I do not the tax, on the market value. There is no man of the Committee of Ways and Means, know how strong that argument ought to be market value except upon cigars which have that commission did not investigate this subconsidered. They say the same thing with paid a tax. It is against the law that they shall ject at all. They made no report upon it; and reference to classification, that it opens the || be offered in market except those which have I beg this committee, therefore, to remember door for more frauds. I think, however, that || paid the tax. Therefore the gentleman's ab- that in voting down the recommendation of the by a little wholesome legislation we might pre- surdity rests upon his own shoulders entirely. || Committee of Ways and Means they are not vent frauds in either case. But certainly, as a [Here the hammer fell.]

voting down the recommendation of the revquestion of principle, just in proportion as you Mr. PAINE. I differ altogether with the enue commission. The single question now approach the levying of taxation according to chairman of the Committee of Ways and Means presented to the committee is this: shall cigars, the value of the articles taxed, you approach as to the experience which the Government which are manufactured out of the low-priced that principle of justice which every man will has had under the late law and under the law tobacco raised in Ohio and other western States, feel ought to be regarded in apportioning the now in force. He has told you, and others pay an equal amount of tax with cigars manuburdens of the Government.

have told me twenty times since this discussion factured from the more expensive and valuable [Here the hammer fell.]

commenced, that the old cigar tax was a tobacco raised in Connecticut? That is the Mr. MORRILL. Mr. Chairman, we are all failure, and that the system now in force is far question presented for the consideration of the fully aware of the ability and the tenacity of preferable to that or any other. Now I say, committee, and it seems to me that, as a quespurpose of the gentleman from Ohio, (Mr. sir, that the experience under the law enacted tion of naked justice, the proposition is so bold Schenck.] He does not yield a hair's breadth in 1864, and in force for a great part of 1865, as to strike the conscience and the judgment even when the committee are disposed to ac- and the experience of the country since the of every man who hears me. commodate him. I rather think, however, that law of 1865 went into force, all go to show that Mr. Chairman, the value of Ohio tobacco is the Committee of Ways and Means have in

the old law is better than the new one. I will generally from seven to ten cents per pound; vestigated this subject more extensively than refer to the figures. Let us refer to the taxes that of Connecticut is twenty-two cents per the gentleman from the Dayton district of collected on cigars during the fiscal year ending | pound. Now, if you levy the same tax on the Ohio, [Mr. Schenck,] who appears to have 1 June 30, 1865. For the first three quarters these cigars made from Connecticut tobacco that you looked at it only on the side of the lowest- taxes were collected under the old and not do upon cigars made from Ohio tobacco, each priced tobacco. It is an old subject, and one under the new law, and I call the attention of costing an equal amount of labor, the result which has been investigated at every session of the committee to the result. The following will be, as it has been under the existing law, Congress for the last four years, and one not are the figures which come to us in the report that you give a monopoly of the market to the without its perplexities. But having tested of the Commissioner of Internal Revenue, and manufacturer of the Connecticut tobacco and various provisions of law, tried each in turn, from the assertions reiterated again and again drive out of the market the product of the Ohio we ought now to profit by experience and hold in this House I appeal to the figures of that tobacco. That has been the result under the fast to that which proves the best.

report. In the fiscal year ending June 30, present law. I can give a single instance in The gentleman's colleague [Mr. LAWRENCE] 1865, the old law yielded, from cigars alone, my own district, which, I apprehend, is but an stated that the revenue commission, who had & revenue of $3,048,127 66. That law-was illustration of what occurred elsewhere all over made a report on this subject, had not visited replaced by the law now in force, which took the western States. A farmer raised a small the West. The gentleman was mistaken. The effect April 1, 1805, that is to say, at the com- crop of tobacco, and during the winter went to revenue commission did not make any report mencement of the fourth quarter of the fiscal work and manufactured it into cigars himself. on this subject, not having the time to devote year 1865. But the new law, which was in When he came to hunt up the assessor, to pay to it. If they had had more time they doubt- force during the last quarter, yielded only || the tax on the cigars, he found that he could less would have fully investigated this question, | $24,348 90. Gentlemen will see that the old not sell the cigars for a sufficient sum to pay as they did others. They commenced upon the law was twofold more productive than the the tax. The result was that he was comsubject, and took considerable testimony, which new law during the same period of time. pelled to destroy them. Now, that is to be wili doubtless be of value hereafter, if opportu. Now, when we come down to the fiscal year the result of this bill, if you levy the same nity shall be given for the complete investigation ending the 30th of June, 1866, and contract tax on cigars manufactured from Connecticut of the whole question.

the revenue yielded by the new law, for the tobacco and those manufactured from Ohio The gentleman from Ohio proposes to go first three quarters ending on the 31st day of tobacco. back to a system of legislation which we have March -last,

with the revenue yielded in the The chairman of the Committee of Ways already tried and found it almost an entire fiscal year 1865 by the old law, which expired || and Means tells us that he is opposed to the failure. The universal testimony of all the at the end of the first three quarters of 1865, whole system of discrimination, to the whole assessors, collectors, inspectors, and other rev- we find the following results, which I read ad valorem system. Why, sir, this very bill enue officers here at Washington is against from a statement furnished me by the Com- makes two grades of cigars, and taxes one two the proposition. Let me, as an illustration,

missioner of Internal Revenue. The old law dollars per thousand and the other four dollars. show what the result was when we had a grad" || yielded $3,048,126 66, and the new law only | If the principle be correct, extend it a little ation of tax upon cigars.

$2,556,518 70. From all these figures I say it further, to all grades of tobacco. Take the year 1864. The tax upon cigars cannot be demonstrated that the old law was a [Here the hammer fell.] at three dollars yielded about $1,200,000; at

total failure and the new lawa complete success. Mr. LAWRENCE, of Ohio, withdrew his amend. eight dollars, $1,108,743 78; at fifteen dollars, I appeal from the assumptions and assertions ment. $386,978 42; at twenty-five dollars, $73,442 ; of those who clamor so loudly against an ad Mr. STEVENS. I move to amend the amend. and at forty dollars, $9,462. This shows con- valorem or a graded tax to the facts and figures | mentofthegentleman from Ohio [Mr. SCHENOK] clusively the result of grading the tax will be of the Commissioner himself. On the con- by striking out the following: that almost every cigar taxed will be taxed at trary, sir, considering the disadvantages under On cheroots and cigars known as short-sixes, and the lowest duty. which that law operated, I declare my con

cigars made with pasted heads, the market value of I have a letter from a tobacco manufacturer

which (exclusive of the tax) is not over eight dollars viction that it unmistakably demonstrated the

per thousand, and on all cigarettes and cigars tho at Detroit asserting the same fact. He goes superiority of an ad valorem or graded tax to market value of which (exclusive of the tax) is over on to say:

this dead level duty of the committee. For, six dollars and not over twelve dollars per thousand, "When I called on you Tuosday last on the tobacco under that law, where there was a gradation,

a tax of four dollars per thousand.

On all cigarettes, cheroots, and cigars, the market tax I forgot to say a word rogarding the oigar tax. I and where the taxes were assessed on different

value of which (tax included) is over twelve dollars

rests.

and not over twenty dollars per thousand, a tax of 1 to value, and it had failed. And I also ex- by the proposition offered by the Committee ten dollars per thousand.

pected to hear him appeal to the House, as he of Ways and Means, which was to allow the On all cigarettes, chcroots, and cigars, the market value of which (tax included) is over twenty dollars

has done, not to go back to that system for the tobacco made in the district of the gentleand not over forty dollars per thousand, à tax of reason that it had been tried and had failed. man from Ohio to be manufactured into a twenty dollars per thousand.

Now, I deny that that system has failed ; I certain description of cigars at a very low rate On all cigareties, cigars, and cheroots, the market value of which (tax included) is over forty dollars deny that it has ever had a fair trial.

of tax. By the proposition as it now stands per thousand, a tax of forty dollars per thousand.. Mr. STEVENS. It never was tried.

cigarettes or small cigars, and cigars made with And insert in lieu thereof as follows:

Mr. SLOAN. Under the first law for rais- twisted heads—the peculiar kind manufactured On all other cigars four dollars per thousand, and

ing revenue there was a grading of taxes upon in the section of country which the gentleman forty per cent.ani calorem, exclusive of the tax: 'Pro- the values of tobacco. But there was no pro- represents-the market value of which does vided. That in assessing the said ad valorem duty the vision whatever put into the bill for the pur- not exceed eight dollars per thousand, will pay first ten dollar valuation shall not be assessed.

pose of enforcing that graduation. And a con. a tax of two dollars per thousand; and where Mr. Chairman, I hardly understand why struction was put on it by the then Commis. || the market value exceeds eight dollars and is the Committee of Ways and Means, after the sioner of Internal Revenue which prevented the not over twelve dollars, the tax will be four experiment of a year, should insist upon im

collection of the various grades of duties. If dollars. This, I think, meets all the actual posing the same amount of tax on cigars worth there was any failure about it, it was a failure wants of the gentleman's district. At any rate ten dollars and cigars worth ninety dollars. It

in consequence of the incompetency and stu- the Committee of Ways and Means were so is downright, clear, bold-faced robbery.

pidity, if not something worse, of the then informed by more than one gentleman interThe result of the tax which these gentlemen Commissioner of Internal Revenue.

ested in the manufacture. And the gentleman propose is this: they put a tax of ten doliars

The Committee of Ways and Means under- has already succeeded in reducing the tax on on all cigars, no matter what their value. Now,

stand perfectly the operation of that law as it smoking-tobacco-if the House should allow it in my county they made ot' what is called Penn

stood, and the inode in which it was cvaded. so to remain, as I hope it will not-from twenty sylvania seed leat-the same tobacco that is

Large manufacturers sold the material out of cents to ten cents per pound, while as the law raised in Ohio and New York-a cigar which which cigars were made to their journeymen, now stands it is twenty-five cents. cost, perhaps, $12 50, and was worth about

at such price as they pleased, with the under- But the gentleman from Wisconsin [Mr. fifteen dollars. In Connecticut, or where they

standing that the journeymen should after, PAINE] has asserted that this system of taxause the foreign leaf, they make cigars ranging ward sell back to them the manufactured tion which he urges has not proved a failure. from thirty to ninety dollars. The same tax,

article at a merely nominal price. And the I gave the facts connected with the operation ten dollars, was imposed on both. What was then Commissioner of Internal Revenue ruled of that law, showing that we received a very the result? The year before that tax was laid,

that that merely nominal price paid by the contemptible and insignificant sum upon all my county raised $2,000,000 worth of tobacco;

manufacturers to the journeymen for the cigars the higher rates; that the only considerable and this year they do not raise $2,000 worth!

after they were made, should be conclusive amount of revenue that we did derive from The whole tobacco interest of Pennsylvania evidence of the value upon which the tax was that source was at the lowest rate fixed in and New York is crushed out for the benefit

to be assessed. There was no discretion given the tax bill, three dollars per thousand. I of Connecticut. Lonly state this fact that gen

to any Government inspector to inspect the have the statement of the Commissioner of temen may be enabled to determine whether

cigars and judge himseit of their price. And Internal Revenue on this subject up to as late this heavy tax, which is thus destroying the

after an attempt, the most absurd, and, I may a date as March 5; and by this statement it tobacco interest of a large section of country, say, the most foolish that ever was made in the appears that the amount of increase on cigars and building up that of a very small section, collection of revenue, it will not do for the is five per cent. ; on snuff eighty-seven per should be persevered in.

Committee of Ways and Means to assert here cent. ; on tobacco (chewing and smoking) fortyI do not like the proposition of the gentle- that there has been a fair trial of the system five per cent. man from Ohio, [Mr. SchexCK.] He makes of taxation according to valuations.

In relation to the amendment of the gentle. Everything should pay according to Now, what is the result of the system of tax- man from Pennsylvania, I do think that it will its value. He makes a rest from ten to twenty ation the committee now urge upon us to adopt? create a great amount of difficulty in ascertaindollars. There is no reason why cigars at lif- The tax is, say ten dollars on a thousand cigars. || ing the value. The gentleman is mistaken if teen and nineteen dollars should not pay in It takes about twenty-eight pounds of tobacco he supposes that we have not laws that are the same proportion as those at ten. But his to make a thousand cigars.

identical in principle with levying a uniform amendment requires those priced at nineteen Mr. GARITELD. Twenty pounds.

tax upon cigars. Take an article manufac. to pay just the same as those priced at ten. Mr. SLOAN. From twenty to twenty-five | tured in his own district-old rye--the true But it ihe price goes over that to twenty-one pounds. That would make the tax about forty J. B., of which the gentleman so well undollars, then the tax is doubled. Now, there

cents a pound on the tobacco used. If the derstands the value, which is made in these litis no reason for that. It is honest and just to

tobacco from which the cigars are made is tle copper stills, and sells for two dollars a make the article pay tax according to its value. worth twelve cents a pound, that would make gallon without any tax whatever; whereas Gentlemen tell us that you cannot enforce such the price of tobacco when purchased in cigars whisky made from corn in the district of the a tax. Why, sir only two pages before this in the bill, there are five articles on which you

abont fifty-two cents a pound. If the tobacco gentleman from Peoria [Mr. INGERSOLL] will

used was worth six cents a pound, with the tax not bring more than fifteen cents per gallon lay an ad valorem duty. Is there anything so it would be worth in cigars about forty-six without any tax. Yet we impose a uniform peculiar in cigars that you cannot collect an

cents a pound. Remember that the cigars that rate of duty upon whisky, whether made in ad valorem duty as well as you can ondiamonds

are worth fifty-two cents a pound are made of the district of the gentleman from Pennsyl. or anything else? Sir, there was never a sys. tobacco worth twice as much as cigars that are vania or in that of the gentleman from Illinois. tem of taxation, foreign or domestic, in Eng. worth forty-two cents a pound, for the tax Now, Mr. Chairman, all experience is against land or in our own country, which carried out added to the six cent tobacco is the same as the system of taxation which it is urged should a system of specific taxes. If you cannot make the tax added to the twelve cent tobacco. And be applied to the subject of tobacco. The exthe tax specific on all articles, make it ad valorem. Tell me it is absurd to carry out this

the difference between six cents and twelve perience of the country which has been cited

cents a pound is the difference between a losing is directly in the teeth of the arguments, for system! It was absurd under the old law be

business and a profitable business to the pro- no matter what the value of the tobacco the cause of the absurd constructions of the Depart- ducer.

same rate of duty is levied. ment. They made constructions which gave Now, any person will purchase the cigar at Mr. LAWRENCE, of Ohio. They raise no you no tax at all. They said that it must be

fifty-two cents a pound rather than the cigar | tobacco in England. thirteen dollars before it could pay eight dol. at forty-six cents a pound, for the one con- Mr. BOUTWELL. Mr. Chairman, I think lars. The result was that the manufacturers tains tobacco worth twice as much as the other. sold the material to the journeymen at a price

that the committee upon examination will see And hence the lower price cigars are entirely that the proposition of the gentleman from agreed upon, and then the journeymen sold the

driven out of the market. It is a vicious sys- | Ohio, to levy a tax upon the value of the cigars manufactured article back at a price agreed tem of taxation ; and it is utterly surprising, exclusive of the tax, is a very unwise proupon, which price was assumed to be that upon with the light which the Committee of Ways vision. We tried that system in the beginning which the tax was to be calculated.

and Means have upon this subject, that they of the operation of the internal revenue law [Here the hammer fell.]

should propose to continue such a system. upon a great many articles made by manufac. Mr. SLOAN. I hope the amendment of [Here the hammer fell.]

turers. Under that system we were expose the gentleman from Ohio (Mr. SCHENCK) will Mr. MORRILL. I move to amend the para- to every kind of fraud, which we resisted for a be adopted. In my judgment, upon it depends | graph proposed to be stricken out, by striking time by construction of the statute until the the question whether the culture of tobacco out the words “ on small cigars."

Of course

difficulty was remedied by legal enactment. in this country shall be confined to a few lo- I realize the difficulty of reconciling all parties Hence I think that the first thing to be agreed calities or whether it shall extend over a very to any tax upon cigars. But it is true in rela- to is that the rule of taxation in the matter of large portion of the country, as it was extend- tion to the law on this subject, as it is in rela- || cigars shall be the same that we apply in other ing very rapidly before the last revenue law tion to many other subjects, that when a tax cases, a tax upon the article at its value, the went into operation.

is well known, and has been practically ad- tax included. There is no other safe method I expected to hear from the chairman of ministered over the country for a year, there of proceeding. Under any other system we the Committee of Ways and Means, [Mr. Mor- should be some substantial reason given for shall experience all sorts of frauds. RILL,) when this amendment was proposed, | changing it if any change is proposed.

Now, the committee propose that upon the assertion which he has made, that we had The complaints which were made in relation various kinds of cigars, the market value of tried the system of imposing taxes according to this matter have, I believe, been fully met which is not over eight dollars per thousand,

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