than husband or wife) who is actually supported by and entirely dependent upon the taxpayer for his support.

The taxpayer's status is determined on the last day of the taxable year. Amounts paid under a life-insurance contract are exempt regardless of whether this amount is paid in a lump sum or installments. The value of property acquired by gift, bequest, devise, or descent is exempt where the gift does not exceed $5,000.

Also exempt from tax is any amount received from accident or health insurance, workmen's compensation acts, damages received by suit or agreement on account of injuries or sickness, or through the War Risk Insurance Act, or any law for the benefit or relief of injured or disabled members of the military or naval forces of the United States.

Section 10: Provides for the imposition of tax at the following

rates:

(a) One percent of the amount of net income not exceeding $2,000. (b) One and one-half percent of the amount of net income in excess of $2,000 but not in excess of $5,000.

(c) Two percent of the amount of net income in excess of $5,000 but not in excess of $10,000.

(d) Two and one-half percent of the amount of net income in excess of $10,000 but not in excess of $15,000.

(e) Three percent of the amount of net income in excess of $15,000 and not in excess of $20,000.

(f) Three and one-half percent of the amount of net income in excess of $20,000 but not in excess of $30,000.

(g) Four percent of the amount of net income in excess of $30,000 but not in excess of $50,000.

(h) Five percent of the amount of net income in excess of $50,000. This section also imposes a tax upon the entire net income as defined by title VIII on all property owned and from every business, trade, or profession carried on and salaries and wages received for services rendered in the District of Columbia by persons not residents of the District. The assessor, however, is authorized to credit the amount of tax payable by the taxpayer under this title with such proportion of the tax so payable by him to the State where he resides, provided, however, a substantially similar credit is allowed residents of the District subject to income tax under such laws of other States.

Section 11: Provides that the tax shall be computed and levied under the direction of the assessor and that the collection shall be made by the collector of taxes.

Section 12: Provides the time and place of filing the returns. Section 13: Requires the assessor to examine the income-tax returns for the purpose of determining whether the tax is correct.

Section 14: Permits the assessor, where no return is filed, or the return when filed is incorrect or insufficient and the maker fails to file a corrected or sufficient return, to determine the amount of tax from such information as may be obtainable. This determination becomes final unless appeal is made to the Board of Personal Tax Appeals.

Section 15: Where the tax, or any portion thereof, is not paid within the time prescribed interest of 1 percent per month or fraction thereof is added. The tax levied hereunder, and the interest and penalties thereon, may be collected by the collector of taxes in the

manner provided by the law for the collection of personal-property

taxes.

Section 16: Requires every fiduciary to make returns.

Section 17: Prescribes the application of the statute of limitations in all cases except where there is a willfully false or fraudulent return with intent to evade the tax.

Section 18: Requires records to be kept by the taxpayer under reasonable rules and regulations prescribed by the Commissioners.

Section 19: Empowers the Board of Personal Tax Appeals to hear and determine controversies arising.

Section 20: Places the administration in the hands of the Commissioners and provides that the Commissioners may prescribe rules and regulations necessary for the carrying out of title VIII.

Section 21: Deals with the evasion of any tax as required by law and provides a penalty of $1,000.

Section 22: Deals with general penalties and limits the fine to $1,000. Section 23: Requires that the Commissioner or any person acting under them must keep secret the information pertaining to income-tax returns.

Section 24: Authorizes the Bureau of Internal Revenue to supply the Commissioners with information relative to any person subject to the tax.

Section 25: Exempts from the title all corporations or associations organized and operated exclusively for benevolent, charitable, or religious purposes, mutual savings banks, building and loan associations, insurance companies, and railroad companies which report to and are subject to the regulations of the Interstate Commerce Commission under the provisions of the Interstate Commerce Act of 1887.

Section 26: Permits a credit to be given for any taxes paid on intangible personal property.

Section 27: Separability clause.

For the information of the House, the District of Columbia Appropriation Act, approved June 29, 1922, provides:

That until July 1, 1927, the Treasury Department may continue to make advances toward the payment of the expenses of the District of Columbia as has been done during preceding years but after June 30, 1927, it shall be unlawful for any money to be so advanced or for any money whatever to be paid out of the Treasury for District purposes unless the District, at the time of such payment has to its credit in the Treasury money enough to pay the full per centum required of it.

In compliance with paragraph 2 (a) of rule XIII of the Rules of the House of Representatives, changes in existing law are set forth below. The sections of the laws relating to insurance companies affected by this bill are as follows:

SEC. 648. PAID-UP CAPITAL REQUIRED, AND SO FORTH.-No fire insurance company, except mutual fire insurance companies organized in the District of Columbia under special Act of Congress or the general laws of said District, or mutual companies of other States licensed to do business in the said District, which has a paid-up capital of less than $100,000, shall be permitted to do business therein, and all life and fire insurance companies or associations licensed to do business in said District shall be required to maintain a reinsurance reserve fund; and whenever any such company or association not excepted from the operations hereof shall become insolvent or impaired to the extent of 25 per centum of its capital stock, it shall be the duty of the superintendent to suspend its license; and unless such impairment or insolvency shall be made good within sixty days thereafter, it shall be the duty of the superintendent of insurance to revoke its license to do business in the District; and it shall be unlawful for any insurance

company, association, or order to do business in the District without a license, or to continue business after the revocation of its license, and any such company or association violating this provision shall be liable to a penalty of $20 for each day it transacts business without such license, to be recovered by the Commissioners of the District by an action of debt in any court of the District of competent jurisdiction. And any person who shall aid in carrying on the business of any such company, or shall act as agent or solicitor for any company not licensed to do business in said District, or whose license is revoked, shall be guilty of a misdemeanor, and on conviction thereof in the police court of said district shall be punished by a fine not exceeding $100, or, in default of payment thereof, by imprisonment in the jail of the District for not less than ten nor more than sixty days. And the superintendent of insurance shall issue such license to any such insurance company or association whenever it shall have complied with the provisions of section 646 of this subchapter, subject however, to the provisions of sections 654 and 655 thereof: Provided, That the superintendent of insurance shall have power to make an official examination into the affairs of any insurance company or association organized under the laws of the District of Columbia, or having its principal office therein, at his discretion, for the purpose of ascertaining whether such company is impaired or insolvent, as aforesaid.

SEC. 649. DEPOSIT REQUIRED OF FOREIGN COMPANIES.-No insurance company or association organized outside the territorial limits of the United States shall be licensed to do business in the District until it shall have complied with the laws of some one of said States requiring a deposit of not less than $100,000, or deposited in the registry of the supreme court of the District, United States or municipal bonds, the market value of which shall be not less than $100,000, to be approved by the superintendent of insurance and the Commissioners of the District, to be held and maintained unimpaired in the registry of said court as a reserve fund for the liquidation of any judgment or judgments that may be obtained against such insurance company or association in said court or any inferior court of competent jurisdiction in said District; and the financial statements of insurance companies or associations, required hereby to be filled annually with the superintendent of insurance, shall set forth specifically the assets, liabilities, and conduct of the affairs of such companies or associations within the United States, and such statement shall be verified under oath by the manager and assistant manager or other proper officers of such companies or associations within the United States; and so much of this subchapter as requires the publication of annual statements shall only extend to the statements respecting the affairs of such foreign companies or associations within the United States.

SEC. 650. STATEMENT OF BUSINESS IN DISTRICT OF COLUMBIA.-Every insurance company and association doing business in the District of Columbia shall, through its local agents or representatives, furnish to the superintendent, during the month of January of each year, a statement of its business in said District, setting forth specifically the net amount of its premium receipts, the amount of losses paid, the amount of expenses incurred, respecting the business done in the District during the calendar year next preceding, and said superintendent shall preserve a separate record of the same in his office for convenient reference, showing the ratio of such losses and expenses, respectively, to said premium receipts, and all insurance companies of every description, except mutual fire insurance companies, shall pay to the collector of taxes before March first of each year a sum equal to 11⁄2 per centum of said premium receipts of the last preceding calendar year, in lieu of all other taxes, except taxes upon real estate and any license fees provided for in sections 654 and 655; and upon the failure of any company to pay said taxes before March first, as aforesaid, the license of said company shall be revoked and a penalty of 8 per centum per month shall be charged against said company, which, together with said taxes, shall be collected before said company shall be allowed to resume business.

SEC. 653. Every corporation, joint-stock company, or association not exempt herein, transacting business in the District of Columbia, which collects premiums dues, or assessments from its members or from holders of its certificates or policies' and which provides for the payment of indemnity on account of sickness or accident, or a benefit in case of death, shall be known as "health, accident, and life insurance companies or associations." After ninety days from the passage of this Act no such company or association shall transact business within the District of Columbia unless it shall have in assets or in capital stock fully paid up in cash, or in both together, not less than $25,000 as a capital or guarantee fund; which assets may be invested in United States, State, county, municipal bonds, and bonds of the District of Columbia, or railroad bonds; but investments in the bonds of railroads shall be limited to the bonds of those railroads which have paid dividends

on their capital stocks for the ten years immediately previous to the date of the investment; or in improved real estate, or in first mortgages on improved real estate; but no loan on real estate shall be made for an amount exceeding 70 per centum of its assessed value, such investments to be approved by the superintendent of insurance of the District of Columbia. No such health, accident, and life insurance company or association, now or hereafter transacting the business of health, accident, and life insurance, or either or all said kinds of insurance, in the District of Columbia shall issue policies or certificates providing, either singly or in aggregate, a greater accident or death benefit than $500, or a greater weekly indemnity than $20 on any one person unless such company or association has in assets or in capital stock fully paid up in cash, or in both together, not less than $100,000 invested and approved as aforesaid. Every such company or association shall pay to the collector of taxes for the District of Columbia a sum of money as taxes equal to 12 per centum of its net premium receipts from business done in the District of Columbia, said taxes to be paid before the 1st day of March of each year on the amount of such income for the year ending December 31st next preceding, in lieu of all other taxes, except taxes upon real estate and any license fees provided for in sections 654 and 655; and upon the failure of any company to pay said taxes before March 1st, as aforesaid, the license of said company shall be revoked and a penalty of 8 per centum per month shall be charged against said company which, together with said taxes, shall be collected before said company shall be allowed to resume business; and shall also file annually with said superintendent of insurance, on or before the first day of March of each year, a sworn statement, on blanks furnished by said superintendent of insurance, showing its true financial condition, income, disbursements, assets, and liabilities on the thirty-first day of December next preceding, and such other information as said superintendent of insurance may require; and shall pay to the said collector of taxes ten dollars for filing such statement. Said superintendent of insurance shall examine from time to time and at least as often as once a year all companies or associations described herein; and when he finds the capital stock of any such company impaired or its assets reduced in value to an amount less than required by the provisions hereof he shall at once give notice of said fact to said company or association, and unless said impairment is made good within sixty days after said notice, it shall be the duty of said superintendent to revoke or suspend the license of said company or association until such impairment shall have been made good; and any company or association that issues policies or certificates of insurance as described herein without a license from said superintendent or during a suspension thereof, as herein provided, shall be fined not less than $20 nor more than $100 per day: Provided, That if any such company or association shall feel aggrieved by the decision of said superintendent concerning the investment or impairment of its assets or capital stock, it shall have the right to appeal, within ten days, from the decision of said superintendent to the Board of Commissioners of the District of Columbia, who shall prescribe rules and regulations for the hearing of said appeal, and their decision shall be final: Provided also, That when any such company or association shall have complied with the provisions contained herein, the superintendent of insurance shall issue to it a license to transact its business in the District of Columbia: Provided, however, That nothing contained herein shall interfere with or abridge the rights of any fraternal beneficial association licensed to transact business under subchapter twelve of chapter eighteen of the Code of Law of the District of Columbia, or incorporated by special act of Congress: And provided further, That nothing contained herein shall apply to any relief association, not conducted for profit, composed solely of officers and enlisted men of the United States Army or Navy, or solely of employees of any other branch of the United States Government service, or solely of employees of any individual, company, firm, or corporation.

SEC. 2. That all Acts and parts of Acts inconsistent herewith be, and the same are hereby, repealed: Provided, That nothing herein contained shall repeal or affect the other provisions of subchapter 5 of chapter 18 of the Code of Law for the District of Columbia regulating foreign corporations, or corporations, associations, or companies who are nonresidents of the District of Columbia (to whom the provisions of this Act shall also be applicable), or the provisions of section 652 of said code relating to inquiry into the affairs of District companies.

The previous three sections are taken from the Code of Law for the District of Columbia, approved March 3, 1901, as amended.

Sections 8 to 15, inclusive, of an act entitled "An act to regulate marine insurance in the District of Columbia, and for other purposes.", approved March 4, 1922, reads as follows:

TITLE V. TAXES

SEC. 8. That with the exception of license fees, real estate, and personal property taxes, and a tax on investment income derived from funds representing reserves, capital stock and surplus as defined by this Act, every insurance company organized, admitted, or licensed to transact business within the District shall, with respect to marine insurance written by it within the District, be taxed only on that proportion of the total underwriting profit of the company from marine insurance written within the United States which the net premiums of the company from marine insurance written within the District bear to the total net marine premiums of the company written within the United States. The term "underwriting profit" as used herein, shall be arrived at by deducting from the premiums earned on marine insurance contracts written within the United States during the calendar year (1) the losses incurred and (2) expenses incurred, including all taxes, in connection with such business.

Premiums earned on marine insurance contracts written during the calendar year shall be arrived at as follows:

(1) Gross premiums on marine insurance contracts written during the calendar year, less return premiums and premiums paid for reinsurance.

(2) Add unearned premiums on outstanding marine business at the end of the preceding calendar year.

(3) Deduct unearned premiums on outstanding marine business at the end of the current calendar year.

Losses incurred, as used herein, shall mean gross losses incurred during the calendar year under marine insurance contracts written within the United States, less reinsurance claims collected or collectible and salvages or recoveries collected or collectible from any source applicable to aforesaid losses.

Expenses incurred shall include

(1) Specific expenses incurred, consisting of all agency commissions, agency expenses, taxes, licenses, fees, loss-adjustment expenses, and all other expenses incurred directly and specifically for the purpose of doing a marine insurance business.

(2) General expenses incurred, consisting of that proportion of general or overhead expenses, such as salaries of officers and employees, printing and stationery, all Federal Government taxes, and all other expenses not chargeable specifically to a particular class of insurance which the net premiums received from marine insurance bear to the total net premiums received by the company from all classes of insurance written during the current calendar year.

SEC. 9. That every company transacting marine insurance in the District shall set forth in its annual statement to the superintendent, and in the form prescribed by him, all the items pertaining to its insurance business as enumerated and prescribed in the preceding section. To determine the basis of the tax on underwriting profit, every company which has been writing marine insurance for five years shall furnish the superintendent a statement of all of the aforementioned items, in the form prescribed by him, for each of the preceding five calendar years. A company which has not been writing marine insurance for five years shall furnish to the superintendent a statement of all the aforementioned items for each of the calendar years during which it has written marine insurance.

If the superintendent finds the report of the company reporting correct, he shall, if the company has transacted marine insurance for five years, (1) ascertain the total average annual underwriting profit, as defined by this Act, derived by the company from its marine insurance business written within the United States during the last preceding five calendar years, (2) ascertain the proportion which the average net annual premiums of the company from marine insurance written by it in the District during the last preceding five calendar years bear to the average total net marine premiums of the company during the same five years, (3) compute an amount of 5 per centum on this proportion of the aforementioned average annual underwriting profit of the company from marine insurance, and (4) charge the amount of tax thus computed to such company as a tax upon the marine insurance written by it in the District during the current calendar year. Thereafter the superintendent shall each year compute the tax, according to the method described in this section, upon the average annual underwriting profit of such company from marine insurance during the preceding five years, including the