Evening journal., 1916-07-25
Protest Filed by the Hercules Powder Company Against Federal war Revenue Tax

prices which resulted large profit the corporations
furnishing such materials For this no special
manufacturing should be placed upon muntion
manufacturers alone Indeed the profits of all corpora
tons there should be placed increased corporation tax over
that provided for the BILL venture the assertion that
900 of the corporations which corporation tax is app
cable have made tremendous profits because account of
this This company has objection paying due
portion of the necessary the appropriations
being made by Congress- but it does object its being singled
out and the business Of other corporations going free when
other corporations have exercised the opportunity make
mendous profits due business arising of growing
out of this war
Not only have practically all manufacturers greatly
benefited by the conditions which have existed in this country
since the beginning of the European but the revival of
business caused thereby has greatly benefited all ranspor
taon companies banking institutions and other lines of bus
mess is shown by the greatly increased receipts of rail
roads the greatly increased deposits Of banks, etc
IT, however the Congress should deem impraccable
unwse increase the corporation tax, it suggested
that fair distribution of the additional amount Of
required be raised would be made by the imposition Of
manufacturers privilege This form of taxation would
be unusual those upon whom it would
Practically all the States have for many years imposed such
could be based either upon the amount of business
done annually upon the of capital actually invested
in manufacturing. Such tax usually imposed upon
the other Of these bases The first would be pre-
ferable.
letter recently received by the President Of the Her
cues Company from the General Manager Of that Company
munition tax makes upon intensely practical mind and
for this it is here reproduced.
Wilmington, Delaware,
July 90 1916
Mr. R. II. Durham, President,
Hercules Powder Company,
Wilmington, Delaware.
Dear Sir:
The proposed Munition Manufacturers Tax is
causing great every employee Of this Com
pany in its Operating Department.
II to that vigorous
should be taken by enlighten the United States
Senate the injustice which this bill, if carried
through the Senate passed by the House, will work
upon our industry
AS you know the manufacture Of military
posive in the United States has prior to the present
unfortunate in Europe, been entirely for domes-
tic consumption and confined to very
limits, the dupont Co. and the u S. Government
being practically the only producers of this class of
commodity in the United States. With the oppor-
tunes presented for the sale of these commodities
abroad opportunity to captize the expert
of long years in the production Of explosives of
our many employees and were led to the conclu-
sion that owed it to stockholders to embark
in this line of explosives and in order TO meet the
demand have expended will have expended by
the end of the present year, upwards Of $s4OOOOO0
for materials labor and construction materials
in order to produce the explosives we have sold.
Prior to the introduction of the present proposed
tax measure the President Of the United States
caused to be formed Committee of Experts to
assist in organizing the industrial establishments of
the United States along the line Of preparedness
This Committee has been collecting data from the
various manufacturers, and amongst the number
have furnished them with details in reference to
the capacities of plants what the plants produce
and when they asked the question to whether
would be willing in the event of the Governments
needs furnish the Government with such supplies
made cost plus fair profit basis to be
fixed by the Government answered that
would be perfectly willing to supply such commo-
dties a produce this basis giving in this
a clear indication that prepared to
sell to Government at prices which they
would fix. It might be well to make few compari-
of the conditions existing the first half of the
year 1914 which is prior to the beginning of the
present European war, and those which existed dur
ing the first half of the year 1916.
The first half of the year 1914 this Company
had at its various plants from the Atlantic to the
Pacific Ocean paid out in wages S43s04319 to its
workmen During the first half of the year 1916,
this Company paid out in wages to its workmen,
$321015710 This large increase in wages must
have carried with it prosperity to the communities
in which the plants located This
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