Evening journal., 1916-07-25

eAS war nine per cent. or thdt eN-
penditure would be a total loss. They
nave paid in wages since the war
began over S45,000000 in the plants
alone. In equipping the plants they
paid war prices. The money they re-
ceived on their contracts was dis
tributed all over the country, paid
out. The raw material which goes
into the manufacture of powder has
increased in some instances, up to 100
times what it was two years ago.
AT the beginning Of the war the
company employed between 5000 and
5000 men. They rapidly ran the num-
Der up until today in New Jersey,
Delaware and Virginia they employ
10000 men. Since the beginning Of
the war this company has been pay
ing It's workmen in the plants higher
wages than ever before were paid to
munitions workmen In addition, in
order to keep an efficient organiza-
tion' the company has been paying a
. bonus of twenty per cent to its work
men above their regular wages.
This company's stock is largely
owned in Delaware. The ramifca-
tons Of the company are such that
our chief industry cannot be touched
as this bill proposes without hurting
many people in Delaware. On
contracts made in 1915. without any
thought or consideration Of such
tax, the proposed tax with its retro
active feature would take S21 900 900
from the company and its stockhold-
ers. The prosperity of the whole
peninsula of Delaware and MARYLAND
depends on this industry.
This proposed tax is equal to $40
per capita on every resident Of Del
aware, and equal to a tax. of $500 on
every voter in Delaware.
we in Delaware will do our part.
and do it cheerfully, in meeting The
/ demands Of the government, but we
do object to this industry being pick
ed out and subjected to a tax the like
OF which was never heard of before"
! Senator Stone said he had received
fifty or sixty kilograms from the peo-
pie OF his State (MissourD protesting
against the tax on explosives. He
said the dupont company. he thought.
had three plants in his State. Mr.
Gray Informed him they were plants
for making blasting and commercial
powders and were exempted in the
revenue bill.
Senator Thomas said he. too. had
received some protesting kilograms,
ana ne said one OF the companies had
a powder plant in his State.
! don't know II the company has
70 pay this tax, but that it will have
TO raise the price Of blasting powder
and dynamite" said Mr.. Gray. The
American people are getting powder
today at the same price they did be-
lore the war. The American govern
ment IS getting powder from the com
pany at the same price" Mr. Gray
salu General Crozier, chief Of ord
nance. went to the company last win
ter and said he desired 10000 or 90
600 pounds Of powder as soon as pos
siole. Very well, Wen look after the
|, United States Government first" the
company informed him. But INV
hands are tied. Under the bill we
, cannot pay more than SO cents a
pound the General explained. 'WeIl
J look out for the government as we
{ always have" the company replied
But you can get 81 a pound for il .
General Crozier remarked. Mr.. GRAY
said that illustrated what always has
been the patriotic attitude OF the com
pany toward the government. the AZ
tltude Of the company it is now pro-
posed to subject 70 a drastic tax Mr.
Gray cited another instance of how
the company supplied the government
with toluol at 40 cents a pound when
II was getting 81 a pound from tbe
belligerents Of Eurone.
Inc company has been patriotic
ana we Delawareans are patriotic u
said Mr.. Gray. THE companv made
the government present of 5000 OOO
} On mat powder and of 100000 on that
MI Gray explained the SEVENTH
seven per cent war tax imposed in
england. There was no attempt ia
} pass a retroactive law, or to put tn,
TAX on the gross receipts. but on tbe
b net profits after proper deductions
, were made Mr.. Gray explained eve
IN Delaware will never get out OF our
+ heads that there has been unjust dis.
elimination against us in this bill and
that If 1t should be passed we wonld
be compelled to pay more than orr
Just share"
. Mr., Gray then analysed the bill
3 showing that while it is proposed Ia
levy a tax Of eight per cent. on the
: gross receipts Of explosives companie
after the first million. the tax on the
trst million dollars being five pel
cent. It is proposed TO tax manufac
turers Of only FIVE per cent. on the
hrst million, and producers of con
y per, which has increased in prict
from IL and II cents 20 2e cents =
pound and with profits inordinately
= increased, II is proposed 10 tax on
: sliding scale up to s1O.0OO.OOO Of
gross receipts and then only tax then
three per cent.
This comparison seems invidious.
n Mr.. Gray asserted He pointed on
o that England is now producing all tn,
d explosives it requires while runnin,
g its plants only at one-third capacitv
The dupont Company has no
i signed a contract with a foreign ma
+ ton since January l." Mr. Ora,
: stated. II employs $4,000 or NOR
Z men, and is paying big wages for
short day. To keep its men at worl
" the company has been offering DOW
r der to the belligerents at 90. so and II
l. cents, and for months has been offer
IS ing il at 65 cents a pound and has no
e received an order.
l. Meanwhile. the price of material
i has been going up General Crozie
! says the cost Of black grain powder II
n the government plant has gone III
= from rs cents to 90 cents a pound, IN
II price at which the dupont compan,
e sells powder to the government.
q "The DIN pOnf and HarcuIac comma .,