Evening journal., 1916-07-13

and comparisons not necessarily in
advocacy of a tax upon them, but
more as a comparison TO bring out
the inequalities of this tax measure.
Having compared the method by
which gunpowder and other explO-
sives are taxed in comparison with
other munitions of war which are un-
taxed it might be in order to illus
trate further inequalities as compar-
ed with other material classed as
war munitions on which the bill pro-
vides a tax. Why should a dollar re-
ceived from gunpowder. or some 9TH
er explosive, bear a tax Of per cent
while a dollar received from the gun
that burns this gunpowder bears a
tax Of only 5 per cent, and the cop
per for she'll cases but per cent?
"The value of almost every raw prod
uct entering into the manufacture of
/ gmpowder and othsr explosives has ad-
Vanced many times since the outhreal.
/ Of the war. The value of copper has
more than doubled, but there has been
no material increase IN the cost of pro-
/ duction II is interesting TO note the
!
used in the powder industry, such as
benzol originally selling for 20 cents per
! gallon, now so cents; toluol, which has
advanced from 20 cents TO 81 per gallon;
and fuming sulphurie acid from Sl5 TO
$3.50 per ton.
Helped Cotton Growers
"I.et us consider the amount of cot
! ton that has been used since the out
I -. s.h .a
sarv for the manufacture Of explosives.
Coming from a State that lies almost
wholly south of the Mason and Dixon
line, I cannot be accused Of sectional
ISM when I call attention to the great
| prosperity that must have accrued to
the Southern States by reason Of the
use Of cotton in this industry. Before
this great product of the South COM
menced to be used in larger quantities
than ever before used for the manufas-
/ ture of powder, the situation threatened
! the prosperity of the Southern States
because Of the injury 70 the cotton trade
| by reason Of the war. We all remeO-
| Der the campaign to buy a bale OF cot
! ton A few months ago the House
passed Joint resolution authorizing and
directing the director of the census to
collect and publish additional statistics
with respect to cotton, and remem-
ber at the time I was one of about eight
Republicans who voted for this measure
! on the roll call in spite of the fact that
certain proponents of the measure as
serted that certain industries existing
; in my State were fighting the bill for
ulterier reasons. l thought 1t proper
that the public should know just how
much cotton was being used in the
manufacture of explosives. Since that
time 1 have taken the trouble to find
out the correct figures as 10 the amount
! of cotton used. The figures OF the esti'
mates show that one of these powder
companies has used over 100000 bales
of cotton Of all grades from December,
| 1914 ,ip TO and including May, 1916,
and in addition thereto other mnition
manufacturers and purifiers Of cotton
for the manufacture Of munitions have
used as much as 100000 bales, almost
OOo 600 bales in all. This cotton,
which has sold as high as cents per
pound. advancing from cents per
pound in some grades, has meant pros
peritv for the cotton producers of TIE
! Southern States, and in that ! sincerely
rejoice. The votes for the passage of
this bill come in large measure from
the sections Of the country that has
prospered in the demand for cotton.
To "Soakv Powder Industry.
while IL must be admitted that
] the manufacturers OF gunpowder and
other explosives have enjoyed a per-
iod of exceptional prosperity during
the past IS months. the fact seems tc
have been lost sight of tina. their
prosperity has been so distributed
that it has permeated other lines OF
industry and been of benefit TO thous-
ands Of working people Throughout. the
country. The other industries which
have shared the prosperity that has.
been passed on to them are not forced
TO bear any taxation, but the burden
/ of taxation has been placed upon the
sourc ewithout being equitably dis
tributed. There seems to be an idea
that all manufacturers OF gunpowder
and other explosives have made eNor-
bitant profits, and therefore that
they should be soaked to the limit.
Il seems TO have been forgotten that
while these manufacturers may have
! received what appeared TO be high
( prices for their products, they have
been forced 10 meet unusual expenses
and they have faced an ever-ascend-
ing scale OF prices on raw materials.
Under the retroactive feature Of
this bill, manufacturers of munitions
are orced TO pay a tax upon the
gross receipts upon all business done
since the first Of January of this year.
When contracts were made for this