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Domestic News July 6, 1909

The Topeka State Journal

Topeka, Shawnee County, Kansas

What is this article about?

The Senate finance committee reported amendments to the tobacco tax schedule, increasing rates on high-grade cigars, cigarettes, snuff, and chewing/smoking tobacco, while prohibiting coupons. Democrats protested the process, leading to a scheduled full committee meeting.

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Amendment to the Tobacco Schedule Is Reported.
Big Increase on High Grade and Little Cigars.
ONE FOURTH HIGHER.
An Increase of 25 Per Cent on Smoking and Chewing.
Use of Any Kind of Coupons Is Prohibited.

Washington, July 6.—The senate committee on finance today completed its consideration of the internal revenue provision of the bill fixing taxes on tobacco and it was reported to the senate soon afterwards. The existing rate of $3 a thousand on cigars weighing more than 5 pounds per thousand was retained, but a proviso was added increasing the tax on high grade cigars. This proviso fixes a tax of $6 a thousand when the wholesale price is between $75 and $110. Where the price is more than $110 the tax is fixed at $9 a thousand. On cigars weighing 3 pounds or less a thousand, the house rate of $1 is reduced to 75 cents a thousand, an increase of 21 cents over the existing rate.

On cigarettes weighing more than 3 pounds a thousand, the house rate of $3.60 is retained, but on those weighing not more than 3 pounds, the house rate is reduced from $1.50 to $1.25 a thousand, which still leaves an increase over the existing tax.

The provision classifying rolls of tobacco wrapped in tobacco as cigars and those wrapped in paper or other substances than tobacco as cigarettes, is retained. The tax on snuff is fixed at 8 cents a pound.

Chewing and Smoking.
The tax on chewing and smoking tobacco is also made eight cents a pound and this rate is made to cover fine cut, cavendish, plug or twist, cut or granulated tobacco of every description. The existing rate on snuff and smoking and chewing tobacco is six cents.

The new rate on tobacco is made applicable to tobaccos twisted by hand or reduced to a condition to be consumed in any manner other than the ordinary mode of drying and curing, preparing for sale or consumption even if prepared without the use of any machine or instrument and without being pressed or sweetened.

Included in the provision are also all fine cut shorts or refused scraps, clippings, cutting and sweepings.

The use of coupons or any form of premium slips in packages of tobacco is prohibited by a new section. This section is considered to be broad enough to prohibit all forms of trade stimulants through the promise of gifts.

Sizes of Packages.
The laws governing the sizes of packages of cigars are re-enacted. Additional sizes of packages of smoking tobacco are permitted by the senate enactment. It is provided that the new taxes shall not take effect until July 1, 1910.

A hornet's nest of opposition was stirred up in the senate when Mr. Smoot reported the amendment. The new provisions had only been read when Senator Daniel, senior minority member of the committee on finance, arose and inquired of the senator from Utah, whether he had said these amendments had been reported by the committee on finance. Receiving an affirmative reply, he promptly denied the correctness of the statement.

"It is another bogus report from the committee," declared Mr. Daniel.

The Virginia senator proceeded to say that the committee on finance had not acted on these amendments. They had been considered, he said, only by the Republican members of that committee.

Democrats Indignant.
Mr. Daniel then offered a resolution declaring that every member of the committee appointed by the senate has the right to be notified of all meetings of the committees to which he belongs and the right to vote on every proposition referred to the committee by the senate. This resolution, he said, had been prepared and was introduced without the authority of all the Democratic members of the senate.

He would, he said, ask an aye and no vote on the resolution at the proper time.

Mr. Aldrich suggested that the record be changed to make it appear that the amendment was reported by Mr. Smoot and not by the finance committee in order to meet the criticism of the senator from Virginia.

Objecting to such change in the record, Mr. Culberson said that was not the way the objection on the Democratic side should be met.

Mr. Aldrich replied that he would call a meeting of the finance committee for tomorrow morning to give the minority members a chance to express their opinion.

It was agreed that the tobacco amendments offered by Mr. Smoot would be printed, that a meeting of the finance committee would be held tomorrow morning for all of its members and that the tobacco tax would not be considered until tomorrow. The tariff bill was then reported to the committee of the whole of the senate.

What sub-type of article is it?

Politics Economic

What keywords are associated?

Tobacco Tax Amendment Senate Finance Committee Cigar Tax Increase Coupon Prohibition Democratic Protest Tariff Bill

What entities or persons were involved?

Mr. Smoot Senator Daniel Mr. Aldrich Mr. Culberson

Where did it happen?

Washington

Domestic News Details

Primary Location

Washington

Event Date

July 6

Key Persons

Mr. Smoot Senator Daniel Mr. Aldrich Mr. Culberson

Outcome

amendments reported with increases in tobacco taxes; democrats protested procedural issues, leading to a full committee meeting scheduled for tomorrow and deferral of consideration.

Event Details

The Senate finance committee completed consideration of tobacco tax provisions in the bill, reporting amendments to the Senate that retained some rates, increased taxes on high-grade cigars to $6-$9 per thousand, reduced some rates but still increased over existing, set snuff and chewing/smoking tobacco at 8 cents per pound, prohibited coupons, and delayed effective date to July 1, 1910. Senator Daniel objected, claiming it was a 'bogus report' by Republicans only, offered a resolution on committee rights, and debate ensued with Aldrich agreeing to a full meeting.

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