Evening star., 1939-03-14
Many Changes
Indicated in
D. {. Tax Bill
Nichols Statement
Defending Morgan
Cites Possibility

Cites Possibility
Chairman Nichols of the Fiscal
Affairs Subcommittee of the House
District Committee in charge of pro-
posed new tax legislation issued a
statement today indicating that
many changes may be made in
the program prepared by DR.. Ches-
ter B. Pond, New York tax expert,
and approved by the Commission
ers' Advisory Committee on Taxa
tion.
y THE subcommittee is not in any
manner bound by the report, fine as
it may be-" said the statement. 1.-The
subcommittee may accept any or all
or none of the principles recon-
mended in the Pond) report"
Representative Nichols also came
to the defense of 10 V. Morgan, sole
member of the District Board of
Tax Appeals, in the controversy as
to who was responsible for the
changes in the Pond plan he out
lined to the subcommittee last week.
ClteS Omclal capacity.
Mr.. Nichols said Mr.. Morgan was
directed by his subcommittee to
make certain changes" not in his
capacity as a member of the Advis-
ory Committee, because the work of
that committee had been finished,
''but in his capacity as member of
the Board of Tax Appeals, an official
of the District of Columbia, and in
his capacity as an adviser to the
Subcommittee on Fiscal Affairs"
The statement follows, in part:
upon the approval by the Ad-
visory Committee of DR.. Ponds re-
port the work of the Advisory Com
mittee was finished. DR.. Ponds
report is now before the Subcom-
mittee on Fiscal Affairs for the
District of Columbia for conSidera-
ton.
"Of necessity the Pond report lays
down only principles Of taxation,
plus recommended tentative draft
of legislation which is proposed to
carry out the principles recommend
ed BY his report.
TT now becomes the business
Of the subcommittee to put into final
form revenue measure.
THE subcommittee is not in any
manner bound by the report, fine
as it may be. The subcommittee
may accept any or all or none of the
principles recommended in the re-
port.
A misunderstood Affair.""
''The subcommittee has asked DR..
Pond and 10 v. Morgan of the Board
OF Tax Appeals to assist it in the
preparation of bill which the COM
mittee will finally recommend to
the Congress for passage. These gen.
tlemen are now working for and un-
der the direction of the Subcommit-
tee on Fiscal Affairs for the District
of Columbia, and the unfortunate
newspaper controversy which has
been carried on for the last few
days as to whether or not Mr..
Morgan or DR.. Pond, in carrying
out the instructions of the subcom-
mittee, have acted in bad faith in
80 far as the Citizens Advisory
Committee is concerned, is very
unfortunate and much misunder-
stood affair.
mo doubt many changes will be
made in the draft of the bill as
proposed by Dr. Pond and approved
> by the Citizens Advisory Commit
tee. At the outset of the considera-
ton by the subcommittee of the
Pond report it was discovered by
the chairman that some principles
as laid down in the temporary draft
were unavoidable, and at the direc-
ton of the subcommittee Mr.. Nor
gan, in his capacity as tax expert,
was directed to make certain
changes to carry out the direction
given him by the subcommittee, not
in his capacity as a member of
the Citizens Advisory Committee,
because the work of that commit
tee had been finished, but in his
capacity as a member of the Board
of Tax Appeals, an official of the
District of Columbia, and in his
capacity as an adviser to the SUBJ
committee on Fiscal Affairs.
This work was started by Mr..
Morgan at the direction of the
chairman of the subcommittee on
Friday, March 3, he being instructed
to finish this assignment so that
committee print of the bill could be
ready for the consideration of the
subcommittee by Monday morning,
March 6.
Criticism Held Unfair.
'While there is nothing unusual,
strange or irregular about this pro-
ceeding, I make this statement for
the purpose of advising those who
are interested that the criticism
directed at Mr.. Morgan is both un-
fair and untimely because his &C
tions have all been in his official
capacity and at the direction of the
chairman of the subcommittee on
fiscal affairs.
II might add that Mr.. Morgan
will continue in this capacity, be-
cause it must be obvious to every
one that this subcommittee must
have, as all other legislative COM
mittees in the Congress must have,
the services of some one to do the
research and work out the many
technicalities that arise in the prep
aration of legislation of this char
acter, when the legislation is viewed
IN the light of practical application"
Cnvpojl Rr:Ion E~-o.