August Mir. Walter Remington U. Bridgeport, Dear Reisinger, Arms 5, 1940 Treasurer, Co., Conn. Walter: For our future guidance and so our files will be complete, this letter will confirm our discussion and unders anding with reference to the memorandum which you prepared illustrating the taxable base for computation of the excise tax and thus arriving at our present actual cost of the Standard Grade Reming-— ton-made Browning Automatic Shotgun under the terms of our agreement ‘of July 1940. Pilus-11% Less 2% : excise tax=(= s+. 5% year end discount— Less special 10% 20629 2.89 29.18 a ee > £3.60 , Since we shall pay for = all Less Plus 2% cash 11% discount- excise tax % merchandise so as to get O71 --—- Less BORE 5. Ae oS Jobber - 2 cash discount price =~ +%30.75 2.92 - B w Ol ~Q oS Example the benefit 9 a Pai) D Od] oN COpOD 0G.) - gave'mes: 8 2 COIN discount you oD end speciag memorandum Roe c VY -----—--— year Less the A price 5% of £5 ex Jobber Less substance OD? pean Dee the i is ay following *" The | i MS 62) ié6éth, e e x of the xe cash discount the reasoning outlined in exmaple 6 will be fallowed. Also since this method of computation reduces the excise tax 6¢ per gun on which we benefit 1¢ and you 5¢ per gun. These are small amounts, but in the ageéregate and over a period of years amount to enoughto make the difference worthwhile. pO as separately to avoid possible confusion you are to invoice from extra barrels, gun Darts, etc., which are. taxable items not. taxabe. mince it is my understanding that the above fully meets with your approval we shall be governed accordingly in determining our cost, including excise tax not only on the Standard Grade Remington—-made Browning automatic, but the same reasoning will apply on such other taxable items which we may buy from you. Yours very truly, Vice-President Oh ¥ LIN ZG arty