Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-12
ReCreationaI Association to
Be Made Defendant in
MandamuS Action.
OMISSION OF SIGNATURE
CAUSES SHORT DELAY
Corporation, Said to Be Making
Big Profits, Denies Right
of D. G. to Assess It.

The Welfare and Reereatlonal ASSo-
citation of Public Buildings and
Grounds Inc, will be named defend
ant today in petition for a writ of
mandamus which will be filed in the
District Supreme Court requiring the
association to show cause why it should
not be compelled to file District
personal tax return.
The petition will be filed in the name
of the District Commissioners by Cor
poration Counsel E. Barrett Pretty
man, his principal assistant, Vernon
E. West, and Assistant Corporation
Counsels George D. Nelson and James
W Lauderdale
The petition was to have been fled
at about noon, but 1t was discovered
that the signature Of Commissioner
Dan I. Sultan had been omitted. Con-
sequently the papers were rushed back
to the District Building for his sigma
ture.
1t is alleged by the Commissioner
that the association, although oper-
ated only on Government property, is
a private institution. incorporated
under the laws of the District and
operated for profit The latest in
formation reaching the corporation
counsels office. it was said. is tina,
the association is making large profits
and has considerable surplus.
Case Is Old One.
Consideration of this case has been
under way for several years. during
which time officials of the association
were heard by the Commissioners.
While association officials have not
had an opportunity to answer the
mandamus, 1t was stated some years
ago in q letter to the Commissioner
from Lieut.. Col. U. S. Grant, Sd. then
head of public buildings and public
parks, that the District was withou.
authority to levy a District tax.
In support Of this he commended
that the cafeterias, swimming pools
and other activities carried on by the
association are all on Federal prop
erty, that the funds are deposited in
the Treasury Of the United States
! and that the activities of the associa-
/ ton are Of great benefit to the resi-
| dents Of the District of Columbia.
! particularly to those who are en-
ployed by the Federal Government,
and who make use of what was de-
scribed as the lower prices and better
service offered by the cafeterias in
the various Government buildings.
The corporation counsels ofice con-
tends the association is not one Of
those institutions which Is exempted
from the payment of personal prop
erty tax In the District, the law on
the subject exempting only libraries
and benevolent and scientific institu-
/ tons which are not conducted for pri-
vate gain. The association holds il
Is a benevolent organization.
Competition Causes Complaint.
! Another bone of contention has
arisen over claims of the owners Of
/ privately operated cafeterias that tn
Government competition Is robbirg
them of their living. despite the fact
that they, and not the association,
are required to pay personal property
| taxes in the District.
Capt. F. w. Hoover, general man
! ager of the association, which main
tains headquarters in the Navy Build
ing, today described the mandamus
proceedings as friendly suit" sug-
gested by his organization more than
q year ago.
In contending the association Is not
answerable for personal taxes, Capt.
Hoover pointed out the association has
no stockholders and there is no dis
tribution Of profits to any private in
dividual.
The filing of the mandamus pro-
ceedings. Capt. Hoover said, was no
surprise. A hearing was held some
time ago before the District Com
missioners, and Capt. Hoover said he
himself suggested presenting the
problem to a court for definite deter
mination. The courts have never
ruled on this point, he said, although
there have been protracted negotia-
tons with the tax collector of the
District of Columbia.
Incorporated in 1927.
The association was incorporated in
1927. The law is that so per cent of
the net proceeds of the association 60
into the Federal Treasury and any
surplus remaining is turned back into
the business, being utilized for the
purchase of equipment and the open
ing up Of new units, the general man.
ager declared.
The outcome Of the mandamus pro-
ceedings will make no difference to
any of the officers or employees of the
association personally. Some observers
said merely that if the District gov
eminent does collect taxes. there will
be less net proceeds to be turned into
the Federal Treasury. r. F. Martin,
chief clerk of the general accounting
office, Is president of the association
and various chief clerks of the Gov
eminent departments are on its Board
of Trustees, Arno B. Cammerer, d.
rector of the National Park Service,
being a leader in the associations &C
Hvities.