HEARINGS

BEFORE THE

COMMITTEE ON FINANCE

UNITED STATES SENATE

EIGHTY-THIRD CONGRESS

SECOND SESSION

ON

H. R. 8300

AN ACT TO REVISE THE INTERNAL REVENUE LAWS

OF THE UNITED STATES

HUGH BUTLER, Nebraska

WALTER F. GEORGE, Georgia EDWARD MARTIN, Pennsylvania

HARRY FLOOD BYRD, Virginia JOHN J. WILLIAMS, Delaware

EDWIN C. JOHNSON, Colorado RALPH E. FLANDERS, Vermont

CLYDE R. HOEY, North Carolina GEORGE W. MALONE, Nevada

ROBERT S. KERR, Oklahoma FRANK CARLSON, Kansas

J. ALLEN FREAR, JR., Delaware WALLACE F. BENNETT, Utali

RUSSELL B. LONG, Louisiana ELIZABETH B. SPRINGER, Chief Clerk

II

CONTENTS

Statement of-

Pago

Aircraft Industries Association of America--

1510

American Gas Association, New York, N. Y.-

1226

Andrews, Ralph M., chairman, section on taxation, New York State

Bar Association ---

1531

Anderson, John W., president, National Patent Council.-

1666

Arent, I. M., attorney, Independent National Gas Association.

1281

Prepared statement--

1281

Proposed amendment----

1291

Atkins, Edward, executive vice esident, National Association of

Shoe Chain Stores_

1151

Balluf, E. J., chairman, special committee on taxation, American

Patent Law Association --

1684

Report and memorandum.

1685

Barker, Richard B., Bibb Manufacturing Co., Macon, Ga..

1268

Prepared statement -

1268

Barnes, William B., Muncie, Ind..

1235
Barrett, Richard F., Boston, Mass.

1204
Additional material..

1206

Batzell, Elmer E., on behalf of the Independent Refiners Association

of America.

1218

Becker, G. Robert, on behalf of Capital Finance Corp., Columbus, Ohio. 1378

Bergen, Kenneth W., chairman, tax forum, Boston, Mass_-

1451

Prepared statement-

1453

List of charities---

1456

Bogan, Eugene F., Washington, D, C----

1354

Brach, Gosswein & Lane, New York, N. Y., and appendix.--

1572

Brainerd, Andrew W., member, Baker, McKenzie, Hightower & Brain-

erd, Chicago, Ill_-

1669

Briefs-

1673

Brennen, William S., National Patent Council.-

1662

Prepared statement----

1665

Button, Ralph W., member, taxation and fiscal policy committee,

American Retail Federation.-

1397

Prepared and supplemental statements.

1400

Campbell, Rolla D., National Council of Coal Lessors, Inc---

1262
Channing, Henry M., submitted by his attorneys, Laurence M. Chan-

ning, Boston, Mass., and Frank S. Ketcham, Washington, D. C.---- 1277

Cleary, George E., New York, N. Y.--

1394

Cohen, Barry S., New York, N. Y.-

1429

Council of Profit Sharing Industries--

1517

Crosby, Laurence A., chairman, tax committee, American Chamber of

Commerce of Cuba----

1632

Prepared statement...

1632

Davidson, John C., director, Government Finance Department of the

National Association of Manufacturers-

1635

Davis, Hon. Clifford, a Representative in Congress from the State of

Tennessee

1683

Davis, Sherlock, general counsel, United States Cuban Sugar Council. 1625

Prepared statement-

1626

Davis, T. C., chairman of the board of directors, Missouri Pacific
Railroad Co.--

1514
Denniston, Robert, Mobile, Ala-

1457
Proposed amendments.

1457
Disney, Wesley E., Washington, D. C.; representing the National
Building Granite Quarries Association, Inc.

1213

Statement of-Continued

Pago

Downs, John W., Boston, Mass.

1449

Prepared statement -

1450

Edelmann, Chester M., chairman, committee on taxation, Limited

Price Variety Stores Association, Inc., New York, N. Y---

1369

Fernald, Henry B., chairman, tax committee, American Mining

Congress_

1241

Exhibits_

1244

Floberg, John F., Esq., member Kirkland, Fleming, Green, Martin &

Ellis, Washington, D. C., and Chicago, Ill_--

1220

Fraser, Donald V., president, Missouri-Kansas-Texas Railroad Co---- 1511

Friedman, Wilbur H., chairman, Committee on Taxation of the New

York County Lawyers Association, and the American Retail

Federation

1304

George, J. M., General Council, National Association of Direct Selling

Companies, Winona, Minn -

1385

Gillet, James M., Victor Chemical Works, Chicago, Ill.

1334

Brief

1335

Gleason, Donald H., member, subcommittee on general tax revision,

National Association of Manufacturers---

1635

Goldstein, Meyer M., Pension Planning Co. of New York_

1433

Prepared statement -

1433

Gorman, James A., president, National Society of Public Accountants. 1237
Green, Thomas J., partner, Peat, Marwick, Mitchell & Co., New York,
N. Y.

1379

Hamel, Charles D., Counsel, Western New York Water Co---

1704

Hausserman, Oscar W., American Research & Development Corp.,

Boston, Mass----

1179

Prepared statement---

1182

Herrman, David W., president, National Association of Shoe Chain
Stores; accompanied by Edward Atkins, executive vice president-- 1151
Appendix

1158

Higgins, Allan H. W., Boston, Mass.

1273

Summary statement--

1276

Detailed statement----

1280a

Hill, J. Rutledge, chairman, Committee on Taxation, National Sand
& Gravel Association, Dallas, Tex..

1266

Holloway, Fuller, counsel, the Toilet Goods Association, New York,

N. Y.

1703

Illinois State Chamber of Commerce-

1708

Isham, Henry P., president, Clearing Industrial District, Inc.,

Chicago, Ill--

1606

Prepared statement-

1608

Jackman, William, president, Investors League, Inc.

1691

Prepared statement-

1693

Johnson, Benjamin 0., general counsel, Spartan Mills.

1195

Kable, Charles W., Jr., chairman, tax committee, American Cotton

Manufacturers Institute..

1160

Prepared statement--

1164

Kamm, Jacob O., executive vice president, Cleveland Quarries Co---- 1291

Keeler, C. Addison, Binghamton, N, Y---

1202

Kuchel, Hon. Thomas H., a United States Senator from the State of

California, and enclosures--

1487

Mack, Walter, president, National Phoenix Industries..

1210

Prepared statement.-

1212

Maytag, Fred, chairman, taxation committee, National Association of

Manufacturers; accompanied by John C. Davidson, director, Gov-

ernment Finance Department, and Donald H. Gleason, member,

subcommittee on general tax revision, National Association of

Manufacturers---

1635

Prepared statement-

1640

McDaniel, Glen, Radio, Electronics—Television Manufacturers Asso-

ciation --

1185

Prepared statement.--

1191

McFarland, Elden, Washington, D. C.--

1198

Memorandum..

1201

Statement of_Continued

Page

McGerr, Patricia, Mystery Writers of America, Inc.-

1610

Prepared statement.-

1613

McGregor, Frank R., executive vice president, Council for Independent

Business

1676

Prepared statement----

1680

Millikin, Roger, director, American Cotton Manufacturers' Institute - 1422
Proposed amendment-

1428
Charts.

1429, 1430
Momsen, Dr. Richard P., director, American Chamber of Commerce
for Brazil, Rio de Janeiro and Sao Paulo, Brazil.

1481
Supplemental statement

1484

Mueller, Harold P., L. J. Mueller Furnace Co.,

Milwaukee, Wis.

1381

Myers, J. Walter, Jr., executive secretary, Forest Farmers Associ-

ation of Atlanta, Ga--

1166

Prepared statement-

1163

National Education Association of the United States of America----- 1521

Oates, James F., Jr., chairman, the Peoples Gas Light and Coke Co.,

Chicago, Ill_

1614

Prepared statement and recommendations..

1617

O'Brien, W. Brice, assistant counsel, National Coal Association; ac-

companied by Lovell H. Parker, chairman, tax committee_--

1409

Prepared statement-

1416

Oliver & Donnally, New York, N. Y., attorneys for Railroad Security
Owners Association, Inc---

1570

O'Malley, James C., secretary and sales manager, the O'Malley Lumber

Co., Phoenix, Ariz_-

1216

Oppenheim, Henry, of Oppenheim, Appel, Payson & Dixon, New York,

N. Y.--

1496

Supplemental memorandum.--.

1497

Packard, Arthur J., chairman, Governmental Affairs Committee,

American Hotel Association.-

1256

Prepared statement_-

1259

Palmer, Robert S., executive director, Colorado Mining Association--- 1298

Pardee, Franklin G., president, the Lake Superior Iron Ore Associ-

ation---

1347

Parker, Lovell H., chairman, tax committee, National Coal Associa-

ation..

1409

Prepared statement-

1416

Quinette, William, Colorado Mining Association; accompanied by

Robert S. Palmer, executive director, Colorado Mining Association.. 1298

Reynolds, L. E., vice president and treasurer, the Connecticut Light

& Power Co., Berlin, Conn---

1326

Prepared statement -

1326

Supplemental letter.

1333

Saltonstall, Hon. Leverett, a United States Senator from the State

of Massachusetts; accompanied by Kenneth W. Bergen, Boston,

Mass.

1451

Schillin, James G., Canal Bank & Trust Co., New Orleans, La..

1169
Petition and Appendix.-

1172

Seidman, J. S., American Institute of Accountants..

1308

Recommendations---

1313

Sprague, Kenneth B., American & Foreign Power Co., Inc., New York,

N. Y.

1656

Accompanying statement-

1660

Stinson, George, New York, N. Y---

1391
Swift, Harley L., past president and chairman of policy committee on
taxes, American Transit Association ---

1373
Tobin, Austin J., representing the Port of New York Authority Airport

Operators Council, the American Association of Port Authorities--- 1478
Vanders Ark, John A., managing director, National Union of Chris-
tian Schools...

1469

Van Metor, Karl K., executive director, United Cerebral Palsy Asso-

ciation -

1698

Waddington, Robert M., Philadelphia, Pa.

1493