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CITY OF NEW ORLEANS.
DEPARTMENT OF FINANCE,
January 23, 1958.

Hon. WILBUR D. MILLS,

Chairman, Ways and Means Committee,

House of Representatives, Washington, D. C.

DEAR MR. MILLS: The Ways and Means Committee will hear testimony on January 31, 1958, relative to H. R. 8702 which is a bill to amend the Internal Revenue Code with respect to the income-tax treatment of dividends paid by certain corporations which hold obligations of State and local governments.

The passage of this bill would be of inestimable value to the State and local governments in that it would broaden the market for our bonds and make them more attractive resulting in lower interest costs.

As you no doubt know, State and local governments are finding it more and more difficult to finance their operations particularly with regard to capital outlays. More demands are constantly being made by the public for expanding services and any additional sources of revenue to finance these services are preempted by other levels of government.

The rise in interest rates for borrowed money has hit municipalities a very hard blow and it follows the costs of servicing new issues has increased tremendously in the past few years. This condition would be alleviated somewhat, with negligible cost to the Federal Government by the adoption by Congress of this

measure.

As director of finance for the city of New Orleans, I wish to heartily endorse H. R. 8702 and urge a favorable report by the committee, and the ultimate adoption of this legislation.

Thanking you, I am

Yours very truly,

ROBERT E. DEVELLE, Director.

CITY OF SAGINAW, MICH.,
January 15, 1958.

Hon. WILBUR D. MILLS,

Chairman, Ways and Means Committee,

House of Representatives, Washington, D. C.

DEAR MR. MILLS: This letter is to indicate our support of H. R. 8702 and to urge its adoption.

For the past few years the city of Saginaw has noted, with considerable apprehension, the progressively higher interest rates we have been required to pay for capital funds. Not only does this trend impede our ability to proceed with various construction projects which are contemplated. We believe it will lead inevitably to pressures for larger Federal grants and loans.

After careful study of H. R. 8702, we are convinced that its passage would broaden the market for municipal bonds, and thus reduce interest rates or retard their further rise by attracting additional investors.

Your favorable consideration of this bill will be appreciated.

Very truly yours,

R. JAMES HARVEY, Mayor.

CITY OF ST. LOUIS, MO.,
January 14, 1958.

Hon. WILBUR D. MILLS,

Chairman, House Committee on Ways and Means,

House of Representatives, Washington, D. C.

DEAR CONGRESSMAN MILLS: I am writing this letter to urge the favorable consideration of the Committee on Ways and Means on H. R. 8702.

H. R. 8702 would, I believe, have the effect of improving the market for municipal bonds by attracting new funds to the municipal bond market. Under this bill all investment companies could purchase municipal bonds and pass the interest tax-free to their shareholders. I think this pass-through privilege would materially increase the interest of investment companies in municipal bonds. If Congress would see fit to adopt this measure widening the market for municipal bonds, it would make a contribution toward the alleviation of the fiscal problems of our cities.

Cordially yours,

RAYMOND R. TUCKER, Mayor.

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CITY OF LAS VEGAS, Nev.,
January 29, 1958.

Hon. WILBUR D. MILLS,

Chairman, House Ways and Means Committee,

House Office Building, Washington, D. C.

DEAR CONGRESSMAN MILLS: It has come to our attention that the Curtis bill, H. R. 8702, will be considered by your committee within the next several days. Since this bill will greatly benefit the issuers of State and local securities, we strongly urge you to support this legislation.

Sincerely yours,

C. D. BAKER, Mayor.

CITY OF BUFFALO,
January 16, 1958.

Hon. WILBUR D. MILLS,

Chairman, Ways and Means Committee,

House of Representatives, House Office Building,

Washington, D. C.

DEAR CONGRESSMAN: One of the most urgent concerns facing my administration is the increasing necessity for capital expenditures in the next and following years and the consequent need for extensive municipal borrowing. This, of course, will be reflected in growing debt service payments.

Together with most other cities in the same plight, we will need all of the assistance from the State and Federal Governments which may properly be given. I believe that H. R. 8702 will provide substantial relief in this area by widening the market for municipal bonds, thus reducing interest rates. I therefore join with the American Municipal Association in urgently requesting that the Ways and Means Committee act favorably on H. R. 8702.

Very truly yours,

FRANK A. SEDITA,
Mayor of Buffalo.

CITY OF SCHENECTADY, N. Y.,
January 29, 1958.

Hon. WILBUR D. MILLS,

Chairman, House Ways and Means Committee,
House Office Building, Washington, D. C.

DEAR CONGRESSMAN MILLS: I desire to place myself strongly on record in favor of the Curtis bill, H. R. 8702, which extends the provisions of tax exemptions on municipal securities to shareholders of regulated and unregulated investment companies investing in municipal issues.

As the American Municipal Association, of which Schenectady is a member, has pointed out, this legislation will greatly assist the marketing of municipal bonds and therefore will play a great part in making it easier for cities like Schenectady to meet the urgent needs of revenue in the future. I hope the committee will give the matter favorable attention. Sincerely yours,

SAMUEL S. STRATTON.

CITY OF COLUMBUS, OHIO,
January 29, 1958.

Hon. WILBUR D. MILLS,

Chairman Ways and Means Committee
House of Representatives, Washington, D. C.

DEAR MR. MILLS: This is to notify you of my hearty endorsement of legislation (H. R. 8702) designed to broaden the market for State and local bonds. If approved, this legislation would reduce the interest rates on municipal bonds by broadening the market for such bonds.

The city of Columbus is currently engaged in a recordbreaking capital-improvement program, the cost of which over the next 5 years is expected to total slightly under $200 million. The bulk of this cost must be financed with bonds. It is, therefore, to our distinct advantage that this legislation be approved. I cannot emphasize too strongly the importance of broadening the bond market so that our capital improvements program may be expedited. As cities continue to grow and private employment and business problems increase, the success of our municipality financed projects must be assured.

Yours very truly,

M. E. SENSENBRENNER, Mayor.

THE CITY OF ERIE, PA.
January 30, 1958.

Hon. WILBUR D. MILLS,

Chairman Ways and Means Committee

House Office Building, Washington, D. C.

DEAR MR. MILLS: I have learned that the Curtis Bill, H. R. 8702, which will broaden the market for municipal bonds by permitting regulated and unregulated investment companies to distribute the interest on such bonds to their shareholders, without loss of tax exemption, is up for hearings before the House Ways and Means Committee.

My commentary on the bill is good legislation, and should have support. We should encourage passage of this bill.

Your serious consideration and comment is important, and can be of controlling effect on this legislation. I trust that you will support favorable action on this bill, and may I extend, in advance, my thanks for your interest and cooperation.

With kindest personal regards, I remain
Yours, sincerely,

ARTHUR J. GARDNER, Mayor of Erie.

CITY OF PHILADELPHIA,

January 17, 1958.

Hon. WILBUR D. MILLS,

Chairman, Ways and Means Committee,

House of Representatives, Washington, D. C.

DEAR CONGRESSMAN MILLS: I understand that your committee will soon consider H. R. 8702, designed to broaden the market for State and local bonds. The American Municipal Association at its recent convention unanimously passed a resolution in favor of this legislation.

The city of Philadelphia strongly supports this bill on the grounds that any broadening of the market for municipal bonds will tend to improve the interest rate on our borrowings.

We urge your favorable consideration of this legislation.
Sincerely,

RICHARDSON DILWORTH, Mayor.

CITY OF READING, PA.,

January 13, 1958.

Re H. R. 8702.

Hon. WILBUR D. MILLS,

Chairman, Ways and Means Committee,

House of Representatives, Washington, D. C.

DEAR MR. MILLS: The enactment of H. R. 8702 would be a constructive boon to all municipalities in the country.

May I urge, with all the emphasis at my command, prompt and favorable action on this bill by your committee.

Respectfully and sincerely,

DANIEL F. McDEVITT, Mayor.

STATE OF SOUTH CAROLINA,

Columbia, January 13, 1958.

Hon. WILBUR D. MILLS,

Chairman, Ways and Means Committee,

House Office Building, Washington, D. C.

DEAR MR. MILLS: As State treasurer and a member of the National Committee for Municipal Bonds, Inc., I am greatly interested in H. R. 8702. I had hoped to appear in person before your committee, but it will be impossible for me to do so on January 31, when the hearing is scheduled.

It is believed that H. R. 8702 will provide real and substantial help to States and their political subdivisions without cost to the Federal Government and will relieve some of the pressure on Washington for Federal aid. Broadening of our market will lower borrowing costs considerably and make available additional funds to the States and subdivisions which are badly needed for improvements.

On behalf of the State of South Carolina, I strongly urge that your commit tee act favorably on this bill at this session. Sincerely yours,

JEFF B. BATES, State Treasurer.

CITY OF NASHVILLE, TENN.,
January 30, 1958.

Hon. WILBUR D. MILLS,

Chairman, Ways and Means Committee,

House of Representatives, Washington, D. C.

DEAR MR. CHAIRMAN: As mayor of one of the principal cities in the United States, and as immediate past president of the American Municipal Association, and as an urban citizen having a keen interest in all things affecting the welfare of our local governments, and particularly the governments of our munipalities, I hereby sincerely urge your committee to give favorable consideration to bill H. R. 8702, which proposed to amend the Internal Revenue Code of 1954 with respect to the income-tax treatment of dividends paid by certain corporations which hold the obligations of States and local governments. There is overwhelming evidence to the effect that the cost of interest on the bonds of municipalities and local governments can be considerably reduced when this bill becomes law.

Our municipalities, other local governments, and State governments, are being called upon to carry out various public improvement and welfare programs on their own financial resources. It seems clear to me that if we are expected to make any appreciable progress in this direction, any effort such as this H. R. 8702, which is designed to bring about a broader market for the obligations of municipalities and local governments, should be given every possible consideration by you honorable gentlemen of the Congress of the United States.

I, therefore, as a representative of my own city, and in the sincere belief that I speak for the great majority of those charged with governmental responsibili ties on the local and municipal level, sincerely urge that the bill, H. R. 8702, be given favorable consideration by your committee. I am sure that the passage of this measure will make possible great savings to the taxpayer of the local governments of the United States, whose burdens are already exceedingly heavy.

Sincerely yours,

BEN WEST, Mayor.

CITY OF MADISON, WIS.,
January 15, 1958.

Hon. WILBUR D. MILLS,

Chairman, Ways and Means Committee,

House of Representatives, Washington, D. C.

DEAR CONGRESSMAN MILLS: I wish to urge most strongly that you and the members of the Ways and Means Committee of the House of Representatives report out favorably H. R. 8702, which is designated to broaden the market for State and local bond issues.

I am confident that adoption of this bill will aid considerably in making a better market for the issuance of municipal bonds. We need this assistance from Congress, and therefore I am petitioning your support for the measure. Sincerely yours,

IVAN A. NESTINGEN, Mayor.

Hon. WILBUR D. MILLS,

COLORADO MUNICIPAL LEAGUE,
Boulder, Colo., February 4, 1958.

Chairman, House Ways and Means Committee,

House Office Building, Washington, D. C. DEAR CONGRESSMAN MILLS: We understand that the House Ways and Means Committee is now holding hearings on the Curtis bill, H. R. 8702. We wish to express the interest of municipal officials in the State of Colorado in the favor able consideration of this proposal.

The executive board of the Colorado Municipal League, representing officials in the 190 Colorado cities and towns, formally endorsed the principles of H. R. 8702 last fall.

We wish to advise of the interest of municipal officials of our State in any legislation designed to broaden the investment market for municipal bonds. Favorable action by Congress on H. R. 8702 or similar proposals would assist greatly in the financing of many vitally needed local improvements.

Such consideration as you and members of your committee may be able to give to legislation which will broaden the market for municipal bonds will be greatly appreciated.

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DEAR CHAIRMAN MILLS: The National Association of County Officials which represents nearly 6,000 elected and appointed county officials in 47 States has officially endorsed the principles of tax passthrough as outlined in H. R. 8702. As you know, counties have had a very difficult time in the past year finding a market for their bond issues at fair rates interest. In many cases, needed school and other projects have been postponed or delayed because of the unfavorable investment market. In other cases the urgency of the project has forced counties to proceed with the issue with the result that the cost of their facilities have been greatly increased. This is an added burden placed upon the taxpayers.

It has also been pointed out that while the recent relaxations of the tightmoney policy may lower the interest rates, these measures by themselves will not solve the long-range financing needs of counties and other State and local units. All estimates point to greatly increased volumes of local issues in the coming years to meet the ever increasing population with its demands for more and better schools and other facilities.

We believe that H. R. 8702 will increase the market for county issues and that the resultant competition will decrease the cost of financing these projects. This is the more remarkable since most of the financial experts indicate that this can be accomplished with little or no loss of revenue to the Treasury since interest from these issues would have been exempt from Federal taxation in any event.

We respectfully request that this letter, together with our policy statement 1-9, be included in the record of the committee hearings.

Sincerely yours,

BERNARD F. HILLENBRAND,

1-9 POLICY STATEMENT

Executive Director.

In order to vastly broaden the market for county and other State and local government bonds, we favor the passage of Federal legislation which would allow investment funds which invest their money in State and local government tax-exempt bonds to pass this Federal tax exemption on to their shareholders.

Hon. WILBUR D. MILLS,

DEPOSIT GUARANTY BANK & TRUST Co.,
Jackson, Miss., January 14, 1958.

Chairman, Ways and Means Committee,

House of Representatives, Washington, D. C.

DEAR MR. CHAIRMAN : I am writing of my strong support for H. R. 8702, which in my opinion, as a former comptroller of the State of Mississippi, will bring much-needed help to the growing South. Areas, such as ours, which are becoming increasingly urbanized have a relatively large volume of bonds to sell. Assistance in selling these new offerings is badly needed.

This bill will broaden the market for our bonds by attracting the funds of the investment companies. The incentive is the preservation of the tax exemption when the interest is distributed to the stockholders. This is a broad bill and only a broad bill will give us the help we need.

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