Evening journal., 1916-07-21

Continued From First Page)
placed on the gross receipts. from
the sale or disposition of "gunpowder
or other explosives" other than
blasting powder and dynamite. when
such sales exceed S1,000.000. except
that in no case will tax be assesses
which would result in reducing the
net profits below 10 per cent on the
investment
2. The net profits Of those engaged
in the manufacture of gunpowder and
other explosives are already taxed
along with the net profits of other
corporations. Thus the powder COM
panies are subjected 10 a double tax
l. e. both on net profits and gross
receipts.
s. The first taxable year is in
cluded between December 81 1915
and December 81, 1916. the bill thus
being retroactive This feature must
Impress anyone as being absolutely
unjust because many contracts have
been filed. the money paid-and dis
trbated or invested in other indus
tries. In the meantime many stock
holders have disposed Of their hold
ings the new purchasers OF stock
thus being compelled 70 bear tho
burden which would otherwise hava
fallen upon those from whom they
made their purchases.
A. II Is a gross discrimination "a
limit as has been done. munitions
Of war" to: (a) copper, (b) guns,
shells loaded ammunition, etc; (c)
gunpowder or other explosives
H4H 4
material and provision used in war
The official reports show that there
have been more than $1,000 600 600 of
such material and provisions" ex-
ported from this country direct to the
war zone in the last two years, In
these exports are included canned
meats. army rations Of various kinds
shoes. stockings. harness. saddles
blankets. kerosene. gasoline. acids
alcohol, locomotives. parts Of subma.
rines. rangefnders, stamped meta
military equipment. swords, hayonets
bromIne and other military gases
barbed wire and other products o
iron and steel Horses 10 the value
Of S12S,S72. 900. and mules to th'
value Of s31 1856 900. have been ex
ported for military purposes
How absurd TO limit munitions o.
war" to the three items. copper
guns and explosives.
s. Take the articles classed as 'mu
nitions Of war" Why should cop.
per be given maximum tax OF
per cent. guns. etc. a miXimum tax
OF per cent, and gunpowder OF
other explosives a maximum tax OF
per cent?
6. AS a matter OF fact in addition
10 this business being extremely haz
ardous the manufacturers Of gun.
powder or other explosives as vel
as guns and ammunitions, work at Z
disadvantage as compared with thl
manufacturers OF other articles spec
fled. which are free from this spe
cial tax. because after the wa
ceases 90 per cent OF their equip
ment will have to be "scrapped" o
turned TO other uses In other word
The demand for sunpowder ammun
ton, etc. IS from abroad and almo
entirely confined to war times TT
manufacturers OF other article
which do not come under this spl
cial tax. have enjoyed both a hon
and foreign demand and in nearl
every instance have used the fol
eign demand as an excuse for boost
ing the home prices. And after tn
war is over, the home demand vii
continue, and that too for a Ion
time az war prices.
T. II should be remembered tina
with this abnormal demand 70
smokeless powder from abroad tn
DUPONT Company supplied the need
of our government at practically IN
same prices as obtained before tn
European war. although every poun
purchased could have been sol
abroad al war prices.
s. The Allies are now able 10 tax
care Of their own needs in the wa
Of gunpowder and guns and ammt
milton. and will only place addition.
orders IN they can do so 10 fnanci;
advantage. No new contracts ha,
been made since January last Wit