Evening journal., 1916-07-25
mt Would Take $50 From Each Share of Stock

dens will by of this have obtained advantage
the purchasers of stock who bought the strength
Of the business the Company doing and
the strength Of the profits and dividends expected to result
therefrom This will from each shareholder 500
the par value of his stock all of which will be upon those
who purchased The purchasers will find themselves the
Tins not of shrewd dishonest sellers but Of Governmental
inepoon The purchaser of 10 shares will be compelled to
contribute 5000 the for the year 1916 and the
purchaser of 100 shares will have to pay $4,000.
So much has been said with reference the imposition of
the tax for the year 1916 We will consider briefly from
the viewpoint of normal business conditions.
In times of peace which all hope for demand for
military explosives slight No large profits be made Of
of the existing munon plants of the Hercules
Powder Company will probably have be scrapped Asum-
ing however portion plant maintained pos
sble business Experience have been the business
has taught that kind of capital
vested is turned about twice year. Turning the
capital twice year under so receipts
tax of 1879 the capital invested this particular branch of
the business But under the law the manufacturer permitted
make profit of 1919 capital Add the 1872
which will represent the taken by the Government the
1919 and find before the manufacturer permitted
make any than 1879 it necessary for him
least $3.50 his invested capital In normal conditions
would be impossible for manufacturer earn more than
26 his invested capital and therefore impossible for him
20 for his and advantage profit of
ten per It impossible for manufacturer of
tons engage in the business with only permissible profit of
per It of common knowledge that by
of the normal risks incident the business
featuring the manufacturer should reasonably be entitled to
make profit Of from fifteen twenty per cent order to
take Of expansion and growth we'll
guard against the risks of Inasmuch as the bust
of manufacturing explosives of the hazardous
kinds of manufacturing business known necessarily follows
that the manufacturer in this line make profit
in order stay in business than the average II
would be unwse for company invest money plants
for the manufacture of military explosives the permissible
profit is so low as ten per cent
There other points that might be discussed with inter
est if not with profit including the doubtful consttutonay
of the retroactive feature of the bill But that if enough
has not already been said convince mind that
under existing conditions in this country no ustiaca
ton for singing manufacturers of munitions as class
which has received from the Government greater degree of
governmental protection than Others deserves pena
cation at the hands of the Government would useless to
say
We repeat that the attitude of this Company is one of per
feet willingness contribute extent to the SUD-
port of the Governments but only the distinction between
taxation and conscaton fundamentally rooted in the con-
seriousness of the American people, but in conscious
there also hourshe the righteous that taxation
should not be discriminatory but that the should be
equaby distributed among all those respect to whom,
there exists the for the imposition tax
Respectfully submitted
HERCULES POWDER COMPANY.
G. G. RHEUBY
RoBT. H. RICHARDS,