THE INDIA RUBBER WORLD 



IMPORTATION OF GERMAN DYES. 



New York, July 17, 1919. 

 To the firm members of The Rubber Association of America, Inc.: 



There has been received under date of July 15, from the War Trade 

 Board, Washington, a copy of the enclosed circular having to do with the 

 importation of German dyes for the use of manufacturers in this country. 



The War Trade Board has urgently requested that they be furnished 

 with a list of the members of this Association who are users of dyes in 

 order that the Board may obtain information as to their needs direct from 

 them. It IS particularly emphasized that the information thus obtained 

 will be treated confidentially and the individual response of manufacturers 

 will not be disclosed. 



Will you not, therefore, in compliance with this request respond immedi- 

 ately with the advice to this office as to whether or not you are inter- 

 ested in the use of dyes to the end that the interests of our manufacturers 

 in this direction may properly be taken care of. 



.\. L. ViLES, General Manager. 

 FEDERAL EXCISE TAX— RECENT RULINGS— FROM THE DEPART- 

 MENT OF INTERNAL REVENUE. 



New York, July 24, 1919. 

 To the firm members of The Rubber Association of America. Inc.: 

 Under date of j'une 10, the Department issued additional 

 regulations known as Treasury Decision 2860. 



RECOaDS TO BE KEPT BY Wrt NTTFACTPRERS. 



Treasury Decision 2860 provides that the person responsible 

 for the return and payment of the ta.x under Section 900 of the 

 Revenue .^ct shall keep such records and memoranda as will 

 clearly show the amounts of sales of taxable articles for each 

 month, and that the tax may be computed upon the gross 

 amount of taxable sales during the month for which the return 

 is made. 



RESALE OF PARTS AND ACCESSORIES BY MANUFACTURER, 



Treasury Decision 2860 also provides that when an automo- 

 bile manufacturer prior to issuance of Regulations 47 (May 1. 

 1919), billed as a separate itein and collected tax upon the re- 

 safe of parts to dealers, and where it is impracticable to adjust 

 the tax in accordance with Regulations 47. the total amount 

 of the ta.x collected shall be paid to the tax collector. The 

 manufacture of parts which are resold by the manufacturer of 

 motor vehicles will be exempt from tax upon such sales, pro- 

 vided he has on tile a certificate from the automobile manu- 

 facturer to the effect that the parts purchased by such manu- 

 facturer on or after February 25 and prior to May 1 had either 

 been used in the manufacture of new cars or will be so used, 

 or that the tax upon such parts therefor sold by the automobile 

 manufacturer will be paid directly to the collector. This ruling 

 allows the manufacturer of motor vehicles to return direct to 

 the collector the ta-x on tires and parts purchased between 

 February 25 and May 1 and resold otherwise than as original 

 equipment b\' the motor vehicle manufacturer. This privilege 

 is not extended beyond April 30. 



REPAIR MATERIALS. 



The Rubber Association has been advised that in a letter 

 signed by Deputy Commissioner Walker, addressed to a mem- 

 ber of the Association, it is held that unvulcanized sheet rubber, 

 liquid rubber vulcanizing cement and friction fabric sold in 

 bulk are not taxable although primarily designed for the spe- 

 cial purpose of being used to repair tires, either as a small sec- 

 tional repair or as a complete retread, and although sold to shop 

 repair men who repair tires for car owners or who rebuild 

 tires for owners or for resale. The sale of such articles, how- 

 ever, when sold in packages or containers as repair parts for 

 tires or inner tubes for motor vehicles, is taxable. It is the 

 interpretation of the Rubber Association that by "sales in bulk" 

 is meant sales in such quantities as are usually made to repair 

 men, and that by "sales in packages or containers" is meant 

 sales in packages or containers of such sizes as are usually 

 sold to owners of motor vehicles for repairs by them. 



REFUND ON ACCOUNT OF PRICE DECLINE. 



The Rubber Association is informed that in a letter of recent 

 date signed by Commissioner Roper and addressed to a mem- 

 ber of the Association, it is held that no credit can be taken 

 by a manufacturer on account of a refund of ta.x made by him 

 to a customer on account of a decline in the price of articles 

 previously sold. It is stated where an article which has once 

 been the subject of a sale and as to which the ta.x of 5 per cent 

 of the sales price has been paid or is attached Ijy operation of 

 law, no refund or remission can be made by reason of a subse- 

 quent readjustment or reduction in the price of such articles. 

 Several of the members of the Association have expressed a 

 belief that the ruling does not conform to the manifest intent 

 of the law, and that the Department will recede from this 

 interpretatiort The Rubber Association has no opinion upon 



this subject, and each member should act as in his judgment is 

 proper. 



INSULATED WIRE NOT TAXABLE, 



The Rubber Association is also advised that in a recent letter 

 by the Department of Internal Revenue, it is held that the sale 

 of insulated wire, although suitable for general wiring of motor 

 vehicles, is not taxable. It is the opinion of the Rubber Asso- 

 ciation that this ruling is meant to apply to all insulated wire 

 except that which is commercially known as "assembly cables." 

 By "assembly cables" is meant an assembly of wires cut to 

 length and bound together for use on motor vehicles. It is the 

 opinion of the Association that the sale by the manufacturer 

 of such wire when so cut to length and bound together, is 



taxable. 



.\. L. ViLES, General Manager. 



TREASURER OF THE RUBBER ASSOCIATION. 



VYTiLn.v.M C. Cox, the recently appointed treasurer of The 

 '' Rubber .\ssnciation of America, Inc., succeeding H. S. 

 Vorhis, resigned, has been a vice-president of the Guaranty Trust 

 Co. of New York since 1912, when 

 the Standard Trust Co.. of which 

 he was an organizer and secre- 

 tary, was mergid with the Guar- 

 anty company. In July, 1918, he 

 was commissioned a captain in the 

 Sanitary Corps of the National 

 -\rmy and assumed charge of the 

 funds at the Medical Supply De- 

 pot in New York City, a work for 

 which his assignment to the trust 

 department of the Guaranty or- 

 ganization well fitted him. After 

 the signing of the armistice he 

 returned to the Guaranty Trust 

 t'o. and is now located at the 

 company's Fifth A\enue office. 



The Rubber Association is 

 fortunate in securing the services ^^ ' 



of Mr. Cox, and his appointment is in line with the larger 

 ties of that organization, which have become such that 



nderwood & Underwo 

 N. Y. 



C. Cox. 



activ 



the duties of a secretar 



^-treasurer were too onerous. 



rviEW Ff^ElGHT RATING ON CRUDE RUBBER SHIPMENTS. 



During the past eight years the official classification ratings 

 on crude rubber shipments by rail have been in dispute, and 

 numerous complaints against the leading railroads have lately 

 been lodged with the Interstate Commerce Commission by The 

 Goodyear Tire & Rubber Co., McGraw Tire & Rubber Co., 

 Racine Auto Tire Co., La Crosse Rubber Mills Co., Kelly- 

 Springfield Tire Co., Batavia Rubber Co., and the Northeastern 

 Ohio Rubber Shippers' Association, an organization of fifteen 

 rubber companies. These complaints attacked as unreasonable 

 and unduly prejudicial the ratings of second-class, less-than- 

 carloads, and carloads, minimum weight 36,000 pounds, and asked 

 that ratings be established as follows: carloads, fourth class; 

 less than carloads, third class. Later a fifth-class rating was 

 asked on carload shipments with a minimum weight of 40,000 

 pounds. 



The complaints were consolidated and heard upon a single 

 record, and in the decision rendered June 2, 1919, it was found 

 that the present second-class rating on less-than-carload ship- 

 ments of crude rubber had not been shown to be unreasonable, 

 but the railroads were ordered on or before October IS, 1919, 

 to adopt on carload lots a rate not in excess of fourth class, 

 with a minimum weight of 40,000 pounds. 



Buy War S.avi.ngs St.^mps— Build for Americvn prosperity 

 and your own success. 



