The Attorney General Washington, D. Page of the United States C. #2 You will observe that the amount February 8, 1940 received by way of increases in prices is stated to apply to grades one and two automatic shotguns. That is so stated because there were no inereases in prices on any other arms. We eall your attentionto the beginning with January 1, 1938. prices fluctuations in In the case of grade one automatic shotguns, January 1, 1928, saw a reduction below the January 1, 1932 price. Certainly thet reduction a complete answer to any contention that our clients were passing on a tax, The same conclusion follows from the other fluctuations. chang es. Wells and We are Baxter basis of the It was competition dictated the | also enclosing accompanied by offer which is in a letter from Scholefield, their statement showing the compromise. They have set out therein a tax computed on Remington-Savage jobbing price basis. Mr. Hoyt has, we believe, in connection with the application for the fixing of a taxeble basis under Section 619 all the necessary information to support the basis used in arriving at this figure. As a matter of fact, the accounting Timm has used identical information with that supplied to by Manager Russell of the Browning Arms Company. Mr. Hoyt I believe. suggested to Mr. formation. you will have In no difficulty im understanding it. Baxter that 1t be for your in- conclusion, may we remind that while, in furnished you Mr. Pergler this correspondence file, a good deal was said about adding the tax to the prices, we believe that the file will show clearly that it was not done. That is the fact. As was stated to ir. Pergler, and as he noted fixed by Brownings prices, and 1t was you, we If there shall be in his after their compstition is any glad to memorandum, prices were competitors had announced their which determined the amounts. further information do If, it. after we can considering furnish this information you are Uncertain concerning any metter which you feel should be decided in our favor in order te accept the offer, we will appreciate an opportunity to meke an argument or furnish additional evidence, Yours We by RDTsDHT are-sending express. | the copies : truly, THATCHER & YOUNG Roy D. Thatcher