The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-07-20

BILE the plant value. the Government
will receive 90 per cent Of the total
profits when the earnings are Is per
cent on the investment: and II the sales
are three times the value Of the invest
ment. the Government will receive 10
per cent OF the profits II the invest
ment yields "a per cent. and In no case
Will the manufacturer receive more
than 10 per cent on his investment.
= Why should 'gunpowder and other
mating. burdensome taxation. even as
compared with other materials classed
psoviTes t manitSn On which ,a ne nil
powder. or some other explosive. bear q
tax OF per cent. while a dollar received
from the gun that burns this gunpowder
bears tax OF. only per cent, and the
copper for shell cases but per cent?
Copper Value Doubled.
THE value Of the last named COM
modify (copper) has more than doubled
since the outbreak of the war. with no
material Increase In the cost Of pro-
duction; whereas. the raw materials en-
tering into 'gunpowder and other ex-
plosives' have advanced In some in
stances as much as 1000 per cent
For example. short-nber cotton has
advanced from . cents to cents per
gallon benzol from 20 cents to 80 cents
per gallon Tuning sulphuric acid from
$16 to $50 per ton. Meanwhile there has
been a constant reduction in the price
ton and market conditions present
that hat obtained before the war. The
m .. price d reached Ct mo time
Is. To make possible the production
of explosives to meet the unusual de-
srsS nnd Deen n
trinsic value. Of which Is maintained
only IN proportion to the use thereof.
This represents capital invested largely
from proceeds CT munition sales and
able profits for reasons Of depreciation
Of value os above noted. To the ex-
tent that future markets do not per-
nit Of the operation Of these extensive
scrap only.
Would Mean Disaster.
-. The retroactive feature Of this
bill would ordinarily mean absolute dis
estcr to the manufacturer OF "gunpow-
der and other explosives"
'"The foreign business that came to
us was embraced in many orders rep
resenting 100 separate and distinct con-
TRACTS. Most VI thoSS SohtioStS huNu
been completed. the money paid and
distributed: some Of It to stockholders.
much of II being invested In other In
dustrtes. Many Of the stockholders who
were the beneficiaries Of this advance
have disposed of their holdings.
when these contracts were made. no
such expense item as this, was consid-
cred in fixing the price Of our product
It Is impossible now to distribute In
any manner this additional burden.
compelling the customer to bear his
holder to assume h's part.
ITO force the stockholders of today
10 bear a tax amounting to possibly
$50 or moro per share OF 500. which
should have been visited on tho stock
holders Of months ago must impress
anyone as inequitable and indefensible.
Moreover we have no means of pro-
lection against this added burden In
contracts n which are ngW In force ,, and ID
the future.
II. This tax. II imposed upon US may
prevent our taking further business Of
this character.
This will mean tho inevitable dis
charge of many employees from the
service Of the company. The total roll
now aggregating approximately tU.UU
must then be reduced to the Ave or six
thousand necessary to operate the COM
mercial business OF the United States.
I'VE had expected to continue our
this war lasted, but the provisions of
the pending bin make this an undesir-
able business risk.
70. Guncotton. which Is the chief IN
gredient entering into the manufacture
OF smokeless powder. and a material eX-