wike An analysis of the transportation charges, which have been erroneously included in the tax base, as aforesaid, is contained in the attached Exhibits "C" and *"E". It is counsel's understanding was agreed base that that subject The I.R.C.) on at the these to recent charges conferences should be in your excluded it tax excise tax imposed by Section 610 (Section 3407, the sale of firearms is a manufacturers’ excise tax and is on the sale by the manufacturer. headed: imposed "Sxcise Taxes on Sales by the wise Article 316.80 of Regulations 46 provides: on the sale by clear thet the manufacturer and at the See by “The established manufacturers’ Albrecht Son, E. & Inc. 46 Like- taxes market v. (8th CCA) lly Fed. (2d) 202, (decided August Corporation v. Collector, (7th CCA), decided CCH Par. 9642 (not yet officially reported). Taxpayer Regulations Manufacturer”. imposed the manufacturer of (1) firearms * * * ". It is statute contemplates a tax only on the sale by the industry. intended the checking. are in the office, from price Commissioner 19, 1940), August 14, and Campana 1940, 404 contends that the manufacturers’ market statute to be used as determining the a basis for price excise tax liability on taxable sales of the J. M. and & &. Browning Company is the price for which similar competitive articles are sold in the ordinary course of trade, by the principal manufacturers in the United States; that this price is the manufacturers’ wholesale price to jobbers, sometimes referred to as the “jobbing price"; and that this price should be used as the tax base in the instant ease because the J. HM. and M. &. Browning Company had no "jobbing price” and only articles consumers. sold To secure as it to retail was a uniform in reality a jobber of dealers at direct and or retail fair tax basis imported in the to instant case, it is, therefore, necessary to reduce the actual invoice price to one that would be comparable with the jobbing price used in the ordinary course of trade by American manufacturers. Counsel has attached hereto as Exhibits "A" and "B" price comparisons on Savage-Remington-Browning standard grade automatic shotguns and standard grade overunder shotguns respectively. The prices used therein were obtained from the price lists of these companies which are on file in your office and from special letters sent out by Remington arms and Savage Arms Companies, taxpayer's principal competitors, covering trade discounts. Copies of special discount letters issued by Remington Arms Company, Inc. will be produced for inspection at the are not attached as exhibits. Company and 2% discount cash the hearing but The jobbing Savage Arms and, in addition, Company have due to prices been beginning a lack of copies, of Remington Arms reduced with 1937, only the by the 5Z year- end discount. The Savage Arms Corporation and Remington Arms Company, inc,, reduced their listed jobbing price by these discounts in determining their excise tax basis on the gale of the aforesaid guns and