August Mr. Welter 0, Reisinger, Remington Arms Coe, Bridgeport, Dear 5, 1940 Treasurer, Conn. Walter: For our future guidance and so our files will be complete, this letter will confirm cur discussion and understanding with reference to the memorandum which you prepared illustrating ;the taxable base for computation of the excise tex and thus arriving at our hae, sost of the Standard Grade Remington-made Browning Automatic Shotgun under the terms of our agreement of July 16th, 1940, The Jobber Less Less following is Exemple A the substance price 11% excise Less 2% oash dobber 1,54 2.92 tax - - < - discount ~ + « wz 28 B price Less special 26429 2.39 290i 253 ; me: Less 5% year end discount eoeck 10% Plus gave Example 5% year end discount -special of the memorandum you Less 2% --- <= 1,54 29024 10% cash 2.92 discount Plus 11% excise tax 26.29 2S 20076 2283 + - - < = -<+--+=-2+ 60 e ood Sincewe shall pay for all merchandise so as to get the benefit discount the reasoning outlined in example B will be followed. Alse of the 2% cash since this method benefit of computation reduces the excise tax 6¢ per gun on which you &¢ per gun, These ere small amounts, but in the aggrezate years amount to enough to make the differences worthwhile. So as to avoid possible from extra barrels, Since it we shall only on ing will is confusion gun parts, ete., my understanding be governed accordingly the Grade Stendard apply om such you are whieh that the to invoice not above in determining Remingtonemade other are taxable items Browning taxable with your including Automatic, but the we may buy from you. Yours very truly, President separately approval, excise which Vice and | meets cost, lg a periodof items taxable. fully our we end over seme tax not reasone -