Evening journal., 1916-07-25

important industry for this tax, which
is the largest ever thought of, which
differentiates it from other businesses.
we think is a discrimination. We
think we should be put on an equal
footing with the copper people. I do
think the range could be extended to
include many other businesses in the
schedule for taxation"
Mr. Gray spoke of the terrific raise
in the price of materials entering
into explosives. and Irenee DUPONT. in
answer to question, said three of the
principal ingredients entering into ex
plosives were sulphuric acid alcohol
and cotton. They cost Is or 20 per
cent. Of the entire cost of production,
Mr.. dupont said, the greatest items
being the cost of labor and amortiza-
ton of construction costs.
What percentage of the production
Of explosives made by your company
is for military user asked Senator
Stone. and Mr. DUPONT said il would
be pretty else to 30 per cent in 1916.
Practically all was made for and sold
to belligerent countries Less than
one per cent of the production was
made for sporting purposes. In re-
Spouse to a question Mr.. DUPONT said
he saw no reason for differentiating
between the taxation on the produc-
ton Of powder. projectiles, shells,
guns. etc, or the method of leyying
the tax.
"All should be treated equally and
fairly and taxed in the same way"
! Mr.. dupont added. I'VE don't object
to paying our share of the tax. but
we don't think we should be taxed
/ disproportlonately. If you say all
shall pay eight per cent. we will be
willing to pay it if all are taxed on
/ the same basis"
Senator Salisbury next introduced
G. G. Rheuby. who. with Robert H.
I Richards. is counsel for the Hercules
! Powder Company. Judge Rheuby
/ submitted TO the committee a printed
| brief of sixteen pages setting forth
/ the company's protest against the
eight per cent tax feature. He spoke
/ of some OF the objections set forth
IN the memorandum.
Judge Rheuby Protests.
Dollar for dollar and share for
share you will not find the DUPONT
| Company the greatest sufferer" he
asserted for the Hercules Powder
Company finds instead Of its common
stockholders being deprived of from
$50 to S35 a share. it will cost them
sixty per cent. or $50 a share. The
capitalization, he said. was about So
| 500 600 Of common and about an equal
| amount Of preferred stock in round
figures. but II did not represent the
amount invested in the manufacture
Of explosives. The tax under the
plan proposed in the bill would take
about 100000 from the Hercules
Company
"The profits have come entirely
from abroad and it has not cost
American citizens one cent All ma
terials. however. had increased fabul-
ously in price" Mr.. Rheuby said
toluol had increased from 80 cents
a gallon to as high as "a a gallon
Our company in six months paid
more than one million dollars for
freights." said Judge Rheuby. He
enumerated many products, such as
steel. copper zinc, meats, oils, cotton
goods sugars, gasoline, barb wire
that have been in great demand since
the war and have increased greatly
in price.
been taken from consumers Of gaso-
line in the United States?' he ask
ed How are you going to tax them
How many millions have gone 10
the manufacturers Of refined sugars
in this country because of the war
IF II is the policy of this Congress
TO tax manufacturers who have profit
ed by the war. these commodities of
which I speak are manufactured and
sold by corporations and when the
figures are ascertained II will be
found the profits are as large as on
explosives. Why this discrimination
against explosives?
'"The American consumer has paid
the price. The profit is in the hands
of the manufacturer Are you willing
to allow those profits taken from
American citizens to remain in the
rockets of manufacturers and take
from the pockets Of explosives manu-,
faoturers the profits they got from
abroad. not one dollar of which came
from American citizens?"
Judge Rheuby asked what the idea
was of fixing a tax of eight per cent
on explosives. five per cent. on NUM-
, tons and three per cent on copper
, He wondered how the committee coulC
s justify such a discrimination in the
. amount Of tax tc be levied on thos'
: commodities if they compared the
= relative advances in price of the diff
J ferent commodities.
ITO explosives manufacturers thi.
: bill IS unjust and hazardous and III,
/ only fair thing TO do is to assess then
? on their net profits" said Judg'
a Rheuby. "They are willing to pa,
r their fair share, but object to bein,
! singled out"
Senator Salisbury after Mr.. Rheub,
concluded. said the powder compan
les were willing that every dollas
they make should bear the same bur
den as every other dollar bears. bu
, don't think they should be lovie,
more
Y Willia.m Martin, secretary OF tn
g Chamber Of Commerce Of Petersbure
a Va, was the next speaker. He sal,
< he represented Hopewell and Peters
e burg. The DUPONT Company cam
0 into their community two years as
= and has spent about $4,000 900 Their
{ for a plant Mr.. Martin said. and ha
spent enormous prices for labor AM
S for operation of the plant. 1.-THE la
r Dor commissioner Of Virginia told m
a that the DUPONT Company treated It
? employees better than any other in
e dustry in the SOUTH" Mr.. Martin as
y serted. Most cnncerns." he SAID
wanted one man to do the work o