The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-07-20
Du Pont Company Lodges Wig.
orous Objection With Ways
and Means Committee.
SAYS THAT OTHERS ESCAPE
Charges Discrimination Against
Explosive Makers and Says
Business Is But Temporary.

An iotter TO members or the House
Committee on Ways and Means. the du
Point company. powder makers to the
belligerent countries of Europe, present
the other side" Of the Democratic pro-
posal to tax heavily the production Of
munitions of wsr.
- hearings were held by the House
s>-;ttee before It reported the emerg-
ency revenue bill two weeks ago. The
du Pont company now presents argu-
ments that the bill discriminates against
the making Of explosives.
IT Is claimed that the bill means
double taxation for the munitions maxi
ers-because they pay an income or
corporation tax on net income and q
special munitions tax on gross receipts.
Point to Others.
The argument Is also advanced that
manufacturers Of other articles that
nave been exported In large quantities
and at high prices escape special
taxation. the munitions makers being
singled out In casting about for q
levy on war orders"
For instance. the du Pont company
says that millions Of dollars worth
Of automobiles. aeroplanes and parts,
rubber and wooden goods have gone
to the belligerents, but there has been
no proposal tc tax this class of war
trade.
While admitting that munitions
makers have had good contracts and
dividends. attention Is called to the
temporary nature of the traffic and
the vast improvements that have
t them ds maas at hssvE to meet
font company reads:
Text of Letter.
Claude Kitchin. Chairman. Ways and
Means Committee. United States
"Dear Sir:
subm the Nays sm ana Me ass!re com to
mittee. House OF Representatives, and
70 other members Of Congress. certain
facts bearing on the manufacture Of
.gunpowder and other explosives taxa.
tion on which IL provided In II. r. 1906
We regret that we did not have an
opportunity to be heard before this bill
QuestinR a hearing because we felt that
any suggestion volunteered might be
misconstrued. However. the proposed
tax Is of SO vital interest to this COM
ploy that we feel justified in sending
you this communication.
4. This bill makes the du Pont Com
pany and other manufacturers of ex-
plosives the subjects Of double taxation
that 10. II places q tax on net income
and on gross receipts.
Points Out Discrimination.
''2. The bill diacriminates against the
manufacturers Of explosives. sinelina
ont thar industry for dra.t,c ,rao,n,an,
ue
a'houn."s 70 pehanAa.on. whiie others
engaged IN the manufacture OF NUM-
lions Of war and making equal or
greater profits are permitted to 20 FREQ.
For examn,e.
io" .ne ueehs ., .he war 70
ana including April last. there were ex-
ported from the United States for mil
itary purposes:
.A,,..
S, u pas'ese' s,to ooo noo
=. os " .o sss oi''''''Siss11'SS 90 80
..Ne,o.,Is az" po''''''''''''''s.'SSSeSo ' ~,
.;;..;;;;...''''... 49,. ,y,.io@'"V
nuooer' inciuo'ns automo sn, 90 oo,
.Wos * 60 90
"ooie" ''@'o'"'V'oV~
No Great Part of Exports.
Imposing as these figures are. they
involve no great part Of the nations
exports and a trifling part Of It's total
profits attributable to the war. There
could be added to the list such articles
as canned meats, army rations OF var
t4us Snos, ronO s' aohes' saadies'
cohoi locomotives. parts Of subme rines
range finders. stamped metal. military
equipment. swords. bayonets. bromine
ana other nrnducts 81 re-, "nS wire