Evening star., 1942-08-19
Par|eyCa|Ied
ToShape Tax
Exemption Bill
Senate D. 6. Unit
To Meet Friday With
City Officials
By J. A. O'LEARY.

By J. A. OLEARY.
The scope of new tax exemption
law for charitable, religious and
educational institutions may begin
to take shape at an executive ses-
sion of the Senate District Com
mittee with city officials, called by
Chairman McCarran for pm. FRI
day. -n
Senator McCarran called the cons
ference after bringing to a close
yesterday afternoon several days
of public hearings at which a va
riety of amendments were suggested
by witnesses who felt the pending
bill does not bring all appropriately
exempt institutions within its terms.
Spokesman for the Catholic arch-
diocese of Baltimore and Washing-
ton and for the National Cathollc
Welfare Conference appealed to the
committee yesterday afternoon to-
clarity the definitions of religious
and educational institutions. They
urged the committee to bear IN
mind that legislation enacted by
Congress for Washington may be-
used as a pattern by the States. I.
Scientific Groups Heard. FL
The committee also heard wit-
nesses yesterday from the Ameri-
can Chemical Society, the National
Academy of Sciences, the Carnegie
Institution of Washington and the
Brookings Institution on the exemp-l
ton status of such educational and
cciantific agencies iii,
Msgr Joseph M. Nelligan told the
committee the Most Rev. Michael
j. Curley is vitally interested in,
the pending bill, both as Archbishop,
of Baltimore and Washington and
as chancellor of Catholic University
Msgr. Nelligan was accompanied
by Msgr. Michael J. Ready, general
secretary of the National CATHOLIC,
Welfare Conference, who presented
several amendments and explained
why the conference believes they are
necessary to grant proper exemption
to religious and educational lnstitu-
tions. The definition of charitable
institutions was described as salts
factory.
Supporting earlier testimony that
houses of study established by re-
ligious orders near Catholic Uni
versity should be exempt, Msgr.
Ready said such study houses rep
resent a university system in exist
ence for centuries. 70
Cites Oxford, Cambridge.
"The various colleges that COM
pose the famous universities of the
Old World, such as oxford and
Cambridge, each a hall or house OF
studies, many of them centuries
old, are an instance in point" said
Msgr. Ready.
Declaring that the canon law OF
the church requires that they be
set up by religious communities,
Msgr. Ready said such houses of
study obviously belong around the
modern university, and added:
Their presence here in Wash
ington has contributed greatly to
making Washington the site of one
of the great universities of the
United States and of the world"
Msgr. Ready said there are two
possible theories Of approach to tax
exemption. One holds that exemp-
ton is a subsidy to be accorded in
stitutions because they perform a
function the Government otherwise
would have to perform. This is the
theory he said local tax officials adj
hered to in many of their decisions
THE other theory" he continued,
"holds that tex exemption consti-
tutes a recognition of the separate
and independent sphere in which
religion, charity and education have
the right under our philosophy Of
government to operate. We think
that neither theory should disre-
gard the other, but that a proper
philosophy of tax exemption would
embrace both. 1t seems to us, how
ever, that the second theory is ESSEN
tial to good and proper govern-
ment." III!
Annual Report Plan Opposed.
The Catholic Welfare Conference
also opposed the section proposing
that henceforth all exempt institu-
tions file annually with the Commits
sioners a report showing the pur-
poses for which the property was
used during the year. Belief was
expressed that such reports are not
required in any other Jurisdiction.
The educational character of the
American Chemical Society has been
recognized by Government agencies,
DR. Charles L. Parsons told the CONF
mittee. Accompanied by Attorney
Elisha Hanson, DR.. Parsons also OUT
lined the scientific value of the So
cietys work and assistance it rem
ders the Government. III.
The arguments for exemption of
the National Academy of Sciences
were presented by Frank D. Jewett,
who pointed out its property ON
Constitution avenue was gift of
the Carnegie Foundation and that
the bulk of its operating trust furds
came from that source. The academy
was created by an act Of Conrre5s,
he said, and was oircc1cd to il"lcie
in its work any surveys CT invc-,l-
cations requested by Government
agencies. .is
The work of the Carnegie Insti-
tuition of Washington. which car
ries on scientific research here and
in other parts of the country, was
outlined to the committee by Dam
nevar Bush. a,
Harry S. Wender, vice president
of the Federation of Citizens Asso-
Citations. Endorsed the principles OF
the bill, but explained the Fedora
tion has not passed on the details OF
the measure. Voicing his individual
opinion, Mr.. Wender said if wholly
national organizations are to be ex-
empt Congress should recognize that
in fixing the Federal payment toward
District expenses.