Mr. JamesP. Hume - 3- May we had in Mr. Gates office, that case reach the “impasse” stage. they did not Whether this wish to have our was because of the 768 angle, or wanted fair basis, I do not just because they to have it settled 5, 1944 upon a know. The thought has occurred to us out here that, in the event it becomes necessary to take our case to the Tax Court, they certainly would be conscious of the fact that a personal holding The Tax Court has company has to distribute all of its income. While the renegotiahandled many cases involving personal companies. tion law does not give consideration to taxes, Mr. J. Gates Williams has certainly given consideration to this phase of the case and you will recall that Mr. Chester Burke and also Mr. Oates were interested in that angle. It would be extremely interesting to know how much the United States Government has expended in developing the Garand rifle. As you probably know, Mr. Garand was a Government employee working in the Springfield Arsenal. If all of the time and effort expended in the development of this particular weapon could be suumarized it would no doubt reach a staggering figure. Whether or not this particular point should be brought out will be left with you. It is quite a sore spot with the Government and probably should be mentioned to them in a conference. Mr. Williams will undoubtedly see the fairness and logic in this new approach to our problem and perhaps will endeavor to ascertain what the cost of developing other weapons has been to the Government, as compared with the total cost to them of developing Browning weapons. We are enclosing herewith three copies of a letter signed by Major General Barney M. Giles, which appeared on Page 1944 issue. 298 of the publication “Army Ordnance” March-april, We thought, possibly, this would be of interest to you. I mentioned to Mr. Val Browning that you would like to know as far in advance as possible when he expected to come Last again. He stated that just as soon as he knew when he could get reservations he would write to you. We are phase of this looking forward renegotiation With kindest with confidence to, the next Lake Tribune problem. personal regards, sincerely yours, GMB:jp nels. P.S. The enclosed newspaper clipping will probably be of interest to from you. the Salt