CONGRESSIONAL RECORD - HOUSE

Page," disapproved on Sept. 7, 1957).

I perceive no basis for reaching a different result under the analogous circumstances of the present case.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 23, 1959.

HAROLD WILLIAM ABBOTT AND OTHERS

H.R. 8277. I am withholding my approval from H.R. 8277, an act for the

relief of Harold William Abbott and

others.

The bill would direct the Secretary of

the Treasury to pay $23,317.61 to 11 individuals in refund of transportation taxes

collected after 1945 and before 1952 for

transportation in connection with fishing parties. Refund of these taxes has

been barred because claims for refund,

and appeals from the rejection of such

claims, were not filed within the time

prescribed by law.

The relief sought in this bill is similar

to that sought in a bill which I disapproved last year, H.R. 3193, "For the

relief of Toley's Charter Boats, Inc.,

Toley Engebretsen, and Harvey Homlar."

On March 31, 1953, a Federal court

held that the transportation tax did not

apply to the type of transportation involved here. At the time of this decision, there remained a period of at least

9 months in which to file timely claims

for 1950 and a period of at least 1 year

and 9 months in which to file timely

claims for 1951. Approximately $10,000

of the amount involved in this bill represents taxes collected during the years

1950 and 1951, which would have been

refunded to seven of the claimants except for the fact that they filed their

claims for refund more than 2 years

after the date of the Federal court decision. The record in this case discloses

no reason justifying this delinquency in

filing claims..

Refund of a large portion of the

amount involved in this bill was barred

by the statute of limitations prior to the

Federal court decision. The basic purposes underlying the statute of limitations continue to obtain in cases where a

taxpayer, after having paid a tax, discovers that the interpretation of the law has

been changed by a judicial decision.

Granting relief in this case would discriminate against other taxpayers similarly situated and would create an undesirable precedent.

Under the circumstances, I am constrained to withhold my approval from

the bill.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 23, 1959.

DISTRICT OF COLUMBIA-POLICE FORCE AND FIRE

DEPARTMENT

H.R. 3735. I am withholding my approval from H.R. 3735, an act to increase

the relief or retirement compensation of

certain former members of the Metropolitan Police Force, the Fire Department of the District of Columbia, the

U.S. Park Police force, the White House

Police force, and the U.S. Secret Service;

and of their widows, widowers, and

children.

I am unable to approve the 10 percent

increase in relief or retirement compensation which the first section of this bill

proposes for its beneficiaries. Policemen

and firemen who retired before October

1, 1956, are already receiving much more

generous treatment than any other

group of retired District of Columbia

employees. This results from the Equalization Act of 1923 which provides for an

automatic proportionate increase in pensions equal to any salary increases

granted active duty policemen and firemen. The equalization feature has operated so effectively that a significant

number of these retirees presently receive a larger pension than their annual

salaries while on active duty. Also, under the 1923 law these retirees have

forged far ahead of District government

annuitants subject to the civil service

retirement program. In the interests of

fairness, the present disparity should

not be further increased.

I could readily accept the other provision of the bill which proposes to adjust and improve the benefits payable to

the widows and surviving minor children

of deceased policemen and firemen who

retired prior to October 1, 1956. The circumstances of this group are different

and I sincerely hope that the Congress,

early in the next session, will enact the

improved benefits which this class deserves.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 24, 1959.

HOWARD F. KNIPP

H.R. 2068. I have withheld my approval from H.R. 2068, an act for the

relief of Howard F. Knipp.

The bill would direct the Secretary of

the Treasury to compute the income

tax liability of Howard F. Knipp for

the calendar years 1947 and 1948 so that

his distributive share of the earnings of

the John C. Knipp & Sons partnership,

for its fiscal year beginning on February

1, 1947, would be determined on the basis

of a full partnership taxable year ending

on January 31, 1948.

The records of the Treasury Department show that Mr. Knipp, a calendar

year taxpayer, was a member of a twoman partnership which had a fiscal year

ending on January 31. The death of Mr.

Knipp's partner on November 21, 1947,

raised the question of partnership termination on that date. If the partnership terminated on that date, Mr. Knipp

had to include in his income for the calendar year 1947 a much greater amount

than would have been the case had the

partnership continued until the normal

end of its taxable year.

On June 2, 1953, the Bureau of Internal Revenue assessed a deficiency

against Mr. Knipp on the ground that

the death of his partner terminated the

partnership and its taxable year. The

Tax Court approved the Bureau's position on October 31, 1955, and that court's

decision was affirmed by the Court of Appeals for the Fourth Circuit on April 10,

1957. On October 14, 1957, certiorari

was denied by the U.S. Supreme Court.

The question of the partnership termination in this case has been litigated before the courts in an orderly manner.

Approval of this bill would encourage demands for legislation overruling court

decisions in individual cases and would

create an undersirable precedent. The

bunching of income in this case has admittedly worked a hardship on Mr.

Knipp but this is mitigated to some extent by the fact that for a number of

years Mr. Knipp had the advantage of

deferring payment of tax each year on 11

months of this firm's profits until the

following year.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 25, 1959.

EXECUTIVE COMMUNICATIONS,

ETC.

Under clause 2 of rule XXIV, executive communications were taken from

the Speaker's table and referred as follows:

1376. A letter from the Secretary of

Health, Education, and Welfare, transmitting a draft of proposed legislation entitled

"A bill to enable the Department of Health,

Education, and Welfare and its various units

to perform their functions more efficiently

and effectively by providing them with cer- tain administrative authority, and for other

purposes"; to the Committee on Interstate

and Foreign Commerce.

1377. A letter from the Administrator,

General Services Administration, transmitting a notice of a proposed disposition of

approximately 470,000 long tons of natural

rubber now held in the national stockpile,

pursuant to the Strategic and Critical Materials Stock Piling Act (53 Stat. 811, as amended, 50 U.S.C. 98B(e)); to the Committee on Armed Services.

1378. A letter from the Assistant AdminIstrator for Congressional Relations, National Aeronautics and Space Administration,

transmitting a report covering the contracts

negotiated by the National Aeronautics and

Space Administration during the period

January 1 through June 30, 1959, pursuant

to the authority of 10 U.S.C. 2304(a) (11)

and (16); to the Committee on Science and

Astronautics.

1379. A letter from the Acting Secretary of

State, transmitting a draft of proposed legislation entitled "A bill to give effect to the

Convention Between the United States of

America and Cuba for the Conservation of

Shrimp," signed at Havana, August 15, 1958;

to the Committee on Merchant Marine and

Fisheries.

1380. A letter from the Acting Secretary

of State, transmitting the 21st semiannual

report on the international educational ex- change program of the Department of State,

pursuant to Public Law 402, 80th Congress; to the Committee on Foreign Affairs.

1381. A letter from the Acting Secretary of

the Treasury, transmitting a draft of proposed legislation entitled "A bill to amend

the Internal Revenue Code of 1954 to exempt from tax income derived by a foreign cen- tral bank of issue from obligations of the

United States"; to the Committee on Ways

and Means.

REPORTS OF COMMITTEES ON PUBLIC BILLS AND RESOLUTIONS

Under clause 2 of rule XIII, reports of

committees were delivered to the Clerk

for printing and reference to the proper

calendar, as follows:

Mr. McMILLAN: Committee on the District of Columbia. H.R. 8768. A bill to

amend the District of Columbia Alcoholic

Beverage Control Act; without amendment

1959 19755