James R. Harris letter to George H. Moore - December 9, 1916

Transcript

Personal. [December] 9, 1916. Mr. Geo. H. Moore, Collector, Internal Revenue Service, St. Louis, [Missouri] Sub: Munition Manufacturer's Tax. ACT of [September] 9, 1916. Your File 16. Dear Sir: We beg to acknowledge receipt of your letters on the above subject, in which you ask to be advised if we were liable to tax under munition manufacturer's section. Our Company has several contracts with the Lake Torpedo Boat Company of Bridgeport, [Connecticut] The Deselektro Company of Bridgeport, [Connecticut], and the California Shipbuilding Company of Long Beach, [California], for the furnishing of our standard line of high speed, light weight marine engines for use in submarine boats which they are building for the United States Government. These engines have been, are being, and will continue to be offered to others for use in other than submarine boats. These contacts were all entered into prior to January 1, 1916 and while the engines have not all been shipped, we presume they will be exempt from the tax. A careful reading of the Act shows that it was not the intention when drafted, that same should cover articles destined eventually for the United States Government and as our Company may in future enter into contracts for the sale of engines to parties having contracts with the United States Government we wish to be advised as soon as possible as to whether such transactions are subject to the provisions of the Act, in order that we may increase our prices accordingly. We would also appreciated if you would advise us if manufacturers and dealers in raw materials and manufactured articles which may enter into the construction of parts for submarines, are subject to the tax, as if they are exempt, we also would be exempt. Yours very truly, BUSCH-SULZER BROS.-DIESEL ENGINE CO. 1st V.P. & Gen. Mgr. [James R. Harris] JRH-C