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Show Me. Walter Earle G. Moyle, Building, Washington, D. Re: C. Browning Arms Company. We have studied your letters dated July 16, 1941 1941 and have prepared for you computations which be of value to you in your conferences with the artment and the Department of Justice. AS we analyze the situation, for the suit period, the Department and Mr. Zimmerman feel that sales made from the inventory transfer should be taxed at the “wholesale” price but that sales from subsequent importations should be reduced to the average “Remington-Seavage" jobbing price. We also understand that for both the suit and the post suit period separate gun barrel sales, transportation charges, and the reduction of retail sales to wholesale price are to be eliminated from the taxable base. Upon this premise we have prepared the computations requested. it is also our understanding that for the post period gun barrel saies should be eliminated from the taxable and that gun sales made from the inventory transfer of June 16, 1932 should be taxed upon the “wholesale” price. in other words, the balance oe the sales made after elimination of transportation, 1 barrel sales, the reduction of retail prices to wholesale, and gun in lee from inventory, should be reduced to the average ‘Remington-Savage" jobbing price for the computation of the tax. “@ were very much interested in paragraph 3, page 2 of your letter of July 16th wherein you state “apparently no question was raised as to the propriety of the proposed method of making such @ reduction.” You will recall last December that we were all quite concerned about this particular question, as well as another which, to our minds, is of equal importance. That is, whether or not after 4& proper taxable base - arrived at if the tax represents one-eleventh of such base or if a tax of 10% upon it should be calculated. On page 6 of your letter you state that in your last conference with #r. Ekstrand he had computed the tax liability for the suit period at $53,793.00. Inasmuch as our computation amounts to $53,704.69 we are inclined to believe that he is using |
