CONGRESSIONAL RECORD - SENATE

(b) Technical amendments.- Alexander Industries, Inc., which stock

(1) The heading of table II in such sec- was later held by the United States cirtion 400 is hereby amended to read as fol- cuit court of appeals to be the property

lows: "Table II of Alexander Industries, Inc., and not of s Be n Ae OJ. Don Alexander (69 F. 2d 610 (1934)). "Taxable Years Beginning After October 31,

1951, and Before July 1, 1953 (Other Than Section 2 of the bill provides that such

the Calendar Year 1953 to Which Table I suit may be instituted within 1 year after

Applies)" date of enactment of the act; that pro-

(2) The heading of table III in such sec- ceedings for the determination of the

tion 400 is hereby amended to read as fol- claim and review thereof and payment

lows: of any judgment thereon, shall be as in

"Table III other cases under title 28, United States

"Taxable Years Beginning After June 30, Code, section 1346 (a) (1); that noth1953" ing contained in the act shall be con-

(c) Effective date: Except as provided in strued as an inference of liability on the

section 5, the amendments made by this sec- part of the United States.

tion shall apply only with respect to taxable The Congress, in changing this bill

years ending after June 30, 1953. from its original form to that of a jurisSEC. 4. Collection of income tax at source. dictional bill, apparently believed that its

Section 1622 of the Internal Revenue Code action would provide a greater degree of

(relating to income tax collected at source) protection to the interests of the United

is hereby amended-S

(1) by striking out "January 1, 1954" States. A review of the facts and of the

wherever it occurs in subsection (a) and decision of the circuit court of appeals

subsection (c) (1) (A) and inserting in lieu convinces me that this action of the Conthereof "July 1, 1953"; and gress has had quite the opposite effect

(2) by striking out "December 31, 1953" from what was intended.

wherever it occurs in subsection (c) (1) (B) The opinion of the court in the case of

and inserting in lieu thereof "June 30, 1953." Alexander v. Theleman referred to in the

SEc. 5. Computation of tax in case of cer- bill discusses in some detail (1) the relatain joint returns. tionship of Mr. Alexander to the corpoIf a joint return of a husband and wife is ration, in which he owned a considerable

filed under the provisions of section 51 (b) portion of stock, and (2) the question of

(3) of the Internal Revenue Code in a case the ownership of the 9,000 shares, the

where the husband and wife have different sale of which Mr. Alexander had as- taxable years because of the death of either

spouse, and the taxable year of the surviving sumed, in paying his income tax in 1930,

spouse covered by such joint return began gave rise to a capital net gain to him.

before July 1, 1953, and ended after June 30, Although the opinion raises some doubt

1953, the amendments made by this act shall whether equitable considerations are apply in respect of such joint return as if the presented so as to justify a refund of the

taxable years of both spouses covered by the principal amount of the tax payment of

joint return ended on the date of the closing $16,720.41, the bill, in conferring juris- of the survlv!u-g spouse's taxable year. '. diction upon the United States District

Mr. MALONE. Mr. President, I am Court for the District of Colorado, proopposed to the continuation of the war- vides for the payment of any judgment

emergency taxes. I am not only op- recovered in accordance with the proviposed to the extension of the war-emer- sions of law applicable to tax cases of

gency so-called excess-profits tax, but I which the court has jurisdiction. Acalso favor, as provided in the proposed cordingly, the bill might permit Mr. Alexlegislation which I have just introduced, ander to recover, not only the amount

setting back the expiration date of the paid by him, but also interest at the rate

emergency individual income taxes to of 6 percent per annum for the period

coincide with the expiration date of the from 1930 to date of payment. Thus, in

excess-profits tax. effect, Mr. Alexander might recover over $23,000 in interest alone.

The requirement that the United

J. DON ALEXANDER-VETO MESSAGE States pay interest on a refund is en-

(S. DOC. NO. 51) tirely proper where the Government has

The PRESIDING OFFICER (Mr. retained a taxpayer's money, notwithHENDRICKSON in the chair) laid before standing the fact that by means of a

the Senate the following message from timely refund claim the officials of the

the President of the United States, which Treasury were put on notice and had an

was read, and, with the accompanying opportunity to examine the merits of the

bill referred to the Committee on the claim. Such circumstances do not exist

Judiciary, and ordered to be printed: in this case. No reason appears why the

Government should pay in interest a sum To the United States Senate: far in excess of the original amount

I return herewith, without my ap- claimed by Mr. Alexander.

proval, the enrolled bill (S. 484) con- If the Congress should decide again to

ferring jurisdiction upon the United review Mr. Alexander's original claim

States District Court for the District of and should resolve the equities in this

Colorado to hear, determine, and ren- case in favor of the claimant, I would be

der judgment upon the claim of J. Don willing to give the case further considAlexander against the United States. eration.

The bill confers jurisdiction on the DWIGHT D. EISENHOWER.

United States District Court for the Dis- THE WHITE HOUSE, June 15, 1953.

trict, of Colorado to hear, determine, and render judgment on the claim of J. Don

Alexander, of Colorado Springs, Colo.,

against the United States for recovery of

income tax paid by him for the year 1929,

which covered the capital net gain for

the sale of 9,000 shares of stock in the

CRITICAL SITUATION OF LEAD

AND ZINC MINERS

Mr. WATKINS. Mr. President, will

the Senator from Maryland yield to me?

Mr. BUTLER of Maryland. I shall be

very happy to yield to the Senator from

Utah, but I must catch a train. I will

not yield for a 15-minute speech. How

much time will the Senator require?

Mr. WATKINS. I do not think I

shall require more than 3 minutes.

Mr. BUTLER of Maryland. I am glad

to yield.

Mr. WATKINS. Mr. President, most

of the lead and zinc mines in the State

of Utah and elsewhere in the United

States are now virtually shut down.

During the past year 22 of Utah's 30

lead and zinc mines have ceased operations. By March 30, 1953, approximately 1,600 people in my State had lost

their jobs as a consequence of the curtailment of lead and zinc mining

operations.

The falling off of lead and zinc mining operations in the State of Utah and

elsewhere in the United States is largely

due to ruinous competition in the American market by lead and zinc producers

from foreign producing areas.

Legislation has been proposed which

would impose a sliding scale stabilization tax on importations of lead and zinc.

I strongly favor this move. Obviously

some form of protective action is necessary in order to restore the lead and zinc

mining industry to a competitive status

with foreign imports. It might be of

some help to use the escape clause in

our present tariff legislation. Up to the

present time the executive department

of the United States has failed to use

the escape clauses in the reciprocal trade

treaties to protect the American industries which are endangered.

I recently received petitions from various mining communities in the State of

Utah bearing the signatures of several

thousand citizens in stricken lead and

zinc mining areas. On May 25, some of

these communities observed "Preserve

Your Community Day" for the purpose of

organizing themselves and bringing to

greater public attention the critical situation with which they are faced. They

have appealed to the Congress of the

United States for help, and in my view

the Congress must take some immediate

action to help relieve this desperate

situation.

I ask unanimous consent to have

printed in the body of the RECORD immediately following my remarks the

communications which I have received

from the mayors of Eureka, Utah; Park

City, Utah; Heber City, Utah; and Lark,

Utah. I ask unanimous consent also

that there be inserted in the body of

the RECORD after my remarks a letter

from the Tooele Mill and Smeltermen's

Union, Local No. 55, of Tooele, Utah,

together with a statement which-appeared in various weekly newspapers

throughout Utah during the week of

June 1, 1953.

There being no objection, the communications were ordered to be printed

in the RECORD, as follows:

LARK, UTAH, June 11, 1953.

Senator ARTHUR V. WATKINS,

Washington, D. C.*

The community of Lark, Utah, depends en- tirely upon the lead-zinc mining industry.

Three hundred and seventy-two signatures

from the community of Lark ask you to support H. R. 5496 to help preserve the lead-zinc

6510 June 15