incoming administration, every 4 years. That was originally for the purpose of taking care of such changes in the White House furnishings and arrangements as the incoming administration might want to make.

It has been used in the past few years to take care of such accumulated repairs, and replacement of furnishings that we have been unable to handle through our other appropriations. Very little has been spent for additional furniture; in general, it has been used to repair or replace worn-out furnishings on hand.

It has been appropriated by Congress without any budget estimate or request by the President.

Mr. WIGGLESWORTH. Does it appear how much of that appropriation has, in fact, been used?

Captain Lock. Yes, sir; it will all have been used by the end of the fiscal year.

Mr. WIGGLESWORTH. The present fiscal year?

Captain Lock. Yes, sir; that is included in the estimate and accounted for as having been expended during the fiscal year 1935. Mr. WIGGLESWORTH. Aside from that sum, have there been any funds received for this purpose, other than appear in the independent offices appropriation bill for the present fiscal year?

Captain Lock. There have been no funds other than for the construction of the Executive Offices. That was an item of $325,000, and I believe that was included in the bill passed by the Congress. Congress itself appropriated that amount to the President, in a separate item, and that has been expended.

Mr. WIGGLESWORTH. No other sums have been used, coming from the Public Works appropriation, or from any other lump-sum appropriation?

Captain Lock. No, sir.

HIRE OF TEMPORARY EMPLOYEES

Mr. WIGGLESWORTH. Would you also say a further word as to the sum of $7,390 for temporary employees for social functions and other work of a temporary character?

Captain Lock. Yes, sir; it is not the practice to carry the entire service personnel necessary for taking care of social functions, all the time. At these various social functions people, for instance, who check hats and perform other additional services, such as butlers, and waiters, are hired on a per diem basis, when the occasion demands. This has been done year in and year out. The item to which you refer is to pay for the additional personnel necessary to handle the White House functions. The ordinary staff could not handle those huge crowds without additional help.

Mr. WOODRUM. That is about the same amount as in previous years?

Mr. CAMMERER. For 1934 it was $8,211; for 1935 it was $7,390 and the estimate for 1936 is for $7,390. It runs along about the same amount each year.

We have a similar situation in the parks of the National Park Service. There we have our regular, permanent staff, but when the peak season comes we add a few temporary employees to take care of the peak loads. The employees provided for in this item are for the peak-load requirement.

Captain Lock. It is really the only economical way to do it.

TUESDAY, DECEMBER 4, 1934.

BOARD OF TAX APPEALS

STATEMENTS OF EUGENE BLACK, CHAIRMAN, AND ROBERT C. TRACY, SECRETARY

Mr. WOODRUM. We will take up the items for the Board of Tax Appeals. Judge Black, will you present the justification for the appropriation for the Board of Tax Appeals?

Mr. BLACK. Yes, sir; the justification is as follows:

Includes $531 transferred to Division of Disbursements. * Increased by $3,300 transferred from salaries and expenses and $756 in accordance with sec. 216, title II, Independent Offices Appropriation Act, Mar. 28, 1934. Based on salary appropriation of 90 percent.

SALARIES

The estimate of $478,500 for salaries is to cover the personnel of the Board, Lcluding members, as it existed on July 1, 1934, and is computed on a 100 perrent basis. The Board as now organized consists of 16 members and 117 employees. It is believed that all of the employees are necessary for the efficient conduct of the business of the Board and I am not prepared at this time to Suggest or recommend that any reduction be made in the personnel.

EXPENSES

Material and supplies.-This allotment, which covers purchases of the usual of office supplies, is less than that proposed for the fiscal year 1935, as it is beeved that the carry-over from the current fiscal year to 1936 of supplies on Land will be sufficient to warrant a slight reduction in estimated expenditures. Communication service. This allotment covers the Board's pro rata share for coztract telephone service and also such extra and additional charges for longdistance toll calls and telegrams as may be found necessary. The same amount ($3,000) is proposed for both 1935 and 1936.

Travel.-The Board has made great progress in the disposition of cases pending before it, and it is believed that during 1936 the expenses of travel can be reduced to $9,000, or $1,000 less than the sum allotted for travel during the fiscal year 1935. Since July 1, 1934, hearings on circuit have disposed of a large number of pending cases and the schedule of hearings proposed for the period from Jan

uary to June 1935 will in all probability result in the disposition of many more such pending cases.

Contract stenographic reporting.-The sum of $17,000 is suggested for this service which is $1,000 less than that proposed for the fiscal year 1935. Unless it should be found necessary to conduct hearings in an unusually large number of important cases involving the testimony of many witnesses, it is my belief that the amount suggested for 1936 will be adequate for our usual needs.

Repairs and alterations. The amount suggested for 1936 is one-half of that proposed for 1935. This fund is usually called on to cover minor repair jobs done to furniture, equipment, etc., in the Board's custody, through the office of the superintendent of the Revenue Building, in which the Board's offices are located.

Special miscellaneous.—The allotment hereunder ($200) is the same as that proposed for the fiscal year 1935. The fund is used to cover small items, such as railway-express charges, occasional freight charges, and other like miscellaneous charges which cannot be properly allocated to one or another of the regular allotments.

Furniture and fixtures.-The sum of $3,150 is suggested as the allotment under this classification. The allotment for the current fiscal year is $1,500. Against this fund we charge the cost of purchase of typewriters, office devices, and books, periodicals, and pamphlets for the library. The publication of new textbooks, tax services, State codes, etc., which are essential to the Board in its work, will cause the additional expenses to fall probably in the fiscal year 1936, and for this reason an increase in this particular allotment is suggested.

PRINTING AND BINDING

During the fiscal year 1934, we spent all of our appropriation of $22,000 and found it necessary to augment this sum by transfer of funds of $3,300. For the fiscal year 1935 our appropriation is $20,000, and considering the large number of reports and opinions that are now being promulgated by the Board, I fear that this sum will not be sufficient to carry us through the present fiscal year. order to be on the safe side and provide that there will be no delay in the prompt publication of the Board's reports, I have suggested that the sum of $26,000 should be appropriated for the fiscal year 1936.

In

The subcommittee which has heretofore considered the Board's estimates of appropriations has given evidence of great interest in the work of the Board, and for this interest the Board is extremely grateful. As a matter of information, I am attaching to this statement (1) statistical statement of proceedings docketed and disposed of since the Board's organization; (2) statement of proceedings pending before the Board as of October 31, 1934; (3) number of proceedings pending before the Board as of October 31, 1934, arranged by years; (4) tables showing the action of the Circuit Court of Appeals and the Court of Appeals of the District of Columbia on Board proceedings before those tribunals; (5) action on proceedings decided by the Board wherein certiorari has been applied for; (6) receipts and expenses of the Board from its beginning to October 31, 1934; and (7) supplemental statement of savings, etc.

In the statement which I submitted to your honorable subcommittee 1 year ago in justification and explanation of the estimates of appropriations for the fiscal year ending June 30, 1935, I stated: "I have high hopes that by July 1, 1934, we will show less than 10,000 cases pending before the Board" (that figure being lower than any the Board has reached since 1926). I have the honor to report that that forecast has been substantially sustained

On July 1, 1934, the number of pending cases before the Board was 10,057. That is the lowest figure of pending cases before the Board since April 1926. On October 31, 1933, little more than 1 year ago, there were pending before the Board, 15,197 cases involving deficiencies of $655,678,157.51. During the 12month period intervening we have received 3,518 new appeals, involving total deficiencies of $162,381,947.08. On October 31, 1934, there were pending before the Board, 9,185 cases involving deficiencies of $523,284,881.49. During this period of 12 months' time the Board has disposed of 9,909 cases involving deficiencies of $307,995,562.14.

This progress continues. Although at the time I prepare this statement, I have not the completed figures for November 1934, the month just closed, relatively the same progress has been made.

The Board does not claim all the credit for this progress in clearing our dockets, much of it is due the Commissioner of Internal Revenue and the Assistant General Counsel for their work in arriving at settlements by stipulation with tax

payers, thus closing the cases so stipulated without the necessity for formal Learings before the Board.

We feel highly gratified with the progress which is being made toward getting our calendars of pending cases current and we expect to continue our efforts along these lines with unabated vigor.

STATEMENT No. 1

Number of proceedings docketed and disposed of since the Board's organization

Lopinions reviewed by the Board prior to July 11, 1927.

Memorandum opinions were first authorized by the Revenue Act of 1928.

STATEMENT No. 2

On October 31, 1934, there were pending before the Board 9,185 proceedings divided as follows:

Not at issue..

Reserve A (pending court decision on similar question)

Circuit calendar.

Day calendar (set for hearing):

Circuit..

Washington

General calendar.

Awaiting entry of decision.

Awaiting decision pursuant to mandate_

Under submission to members..

STATEMENT No. 3

495

859

2, 379

135

306

3, 198 257

43

1, 513

A majority of the 9,185 proceedings pending before the Board as of October 31, 1934, involve taxes for several years. In view of that fact the following which sets out the years involved and the number of proceedings applicable thereto, the total is in excess of the pending cases: 1913, 6; 1914, 7; 1915, 8; 1916, 10; 1917, 33; 1918, 90; 1919, 107; 1920, 233; 1921, 194; 1922, 199; 1923, 375; 1924, 448; 1925, 610; 1926, 725; 1927, 1,009; 1928, 1,272; 1929, 2,080; 1930, 2,469; 1931, 1,856; 1932, 285; 1933, 13.

In comparing the above figures with the corresponding table submitted last year, it will be noted that a substantial reduction has been made in proceedings involving the years 1918 to 1930, inclusive. For ready comparison there is submitted in parallel columns the proceedings involving those years pending November 30, 1933 and October 31, 1934.

Under the Revenue Act of 1926, section 1003 (a), an appeal from the Board's decision was authorized to a United States Circuit Court of Appeals or the Court of Appeals of the District of Columbia, and thence to Supreme Court on certiorari. Since the passage of that act and to October 31, 1934, of the total of 23,410 decisions subject to appeal, 3,607 have been taken. The action of said courts on the Board's decisions is as follows:

1 This includes dismissals and miscellaneous from Mar. 1, 1926 to Oct. 1, 1926, and opinions, dismissals and miscellaneous from Oct. 1, 1926, to Oct. 31, 1934.