A. W. Foote to Thaddeus Stevens, 16 January 1864
Transcribed by Holly Harper and reverse-order proofed by Chris Jonas, Furman University, from the Thaddeus Stevens Papers.
Introduction:
This letter represents the numerous pieces of correspondence from this time period regarding certain aspects of the revenue laws concerning the taxation of tobacco products. It recommends a tax on the leaf, rather than on the manufactured product, as directed by the legislation. Research on the author offered no further information than the name indicated on the letter, itself.
New York Jan. 16th 1864
To the
Committee of Ways & Means
Washington D.C.
Gentleman;--
Being connected with one of the largest, (and I may say the largest) segar manufactory in the United States. I feel authorized to offer for your consideration a few suggestions in regard to the revenue tax upon our branch of the tobacco trade.
In the first place, it is impracticable to collect the proper revenue upon the manufactured article, for the reason that every segar maker is, in one sense a manufacturer, and cannot be reached, of which fact, you need no betterproof [sic] than the last years experience--
Under the workings of the present law, it has become a most difficult matter to carry on a regular factory , and indeed in many instances quite impossible, and they have been broken up.
To illustrate the point, for instance, hundreds of segar makers have found it to their advantage rather than to work in a regular factory, to purchase their tobacco in small parcels, and work it at home, or wherever convenience would permit, at the same time, in this way secureing [sic] the additional help of their wives and children, and selling the segars lose [sic], or packed, as circumstances might require, wherever they could find a buyer, regardless of the tax, consequently destroying the large revenue that otherwise would have accrued from the regular factories, properly restricted.
Again, to divide the tax part upon the leaf, and part upon the segars, would undoubtedly be a help, but stil [sic] would fail to accomplish the object, leaving the regular manufacturers stil [sic] subject to the same contingencies, and difficulties as before, in regard to the controll [sic] of hands, the fraud practised [sic] by individual segar makers, and fraudulent manufacturers. All of which clearly must be prevented [deleted: ,] in order to secure equal justice to all concerned, and a positive certainty as to revenue.
Again, it will not do to rely upon an increased tax on the manufactured article-- Increased fraud in propertion [sic], will be the natural, and inevitable consequence. Hence, to make the law plain, simple, and effective, the whole tax should go upon the leaf for manufacturing purposes, including the stock on hand.
The argument, that "to tax the leaf," will discourage its growth," is fallacious. The unprecidented [sic] profit in its growth for the last two years, has not been altogether legitemate [sic], but the result, in part, of forced speculation, and is no precident [sic] for the future. At 15 cts. per pound, it is the most profitable crop known to the farmer. (I speak now particularly in reference to Connecticut leaf, besides, all of our export tobaccos are specialuties [sic], of peculiar, and desirable qualities, such as to shut [interlined: out] all possibility of substitutes, thus rendering their demand positive, beyond all reasonable [unclear: peradventure], and in my judgement, they can pay an export tax of 3 to 5 cts per pound, without injury to the producer, The present surplus, is no argumt [sic] against it, indeed we should never be without a heavy surplus of any staple of so great importance.
Respectfully Yours
A. W. Foote
162 Pearl St.
(benson/HST41/clear/stevens3.htm)