Evening star., 1947-05-22
UnfayorabIe Report
Due on ; District
Tax Exemption Bills

Because this city Is facing q Dig
financial deficit during the coming
year, bills to exempt from District
taxation the property Of three
patriotic organizations here will be
reported unfavorably to the Senate
District Committee by Chairman
Cain of the Subcommittee on Fiscal
Affairs.
Senator Cain, Republican, OF
Washington, also announced, afteD
hearing yesterday, his unit would
make favorable report on another
measure, sponsored by the District
Commissioners, to amend the 1912
law on tax exemption in several
particulars.
Two Veteran Groups Involved.
The three groups which will get
negative report from the subcom-
mittee are: ...
District Department Of the Amer
ican Legion, whose clubhouse at
2437 Fifteenth street NV, now is
paying taxes variously reported as
81 1888 and $1,513 year.
The Reserve Officers Association,
whose headquarters at 2517 Con-
necticut avenue NV. was said to
be paying annual taxes of $756.
The Robert E. . Lee Memorial
Foundation, operating Stratford
Hall, home of Robert E. Lee in Vir-
ginia, on whose Office equipment at
headquarters in the Colorado
Building here the District levies an
annual tax of $2.48.
IT admit that is very small" said
Mrs. Harry B. Halves, president OF
the Lee foundation, "but it's the
principle for which we are fighting. "
Exempted in Virginia.
She contended Stratford Hall is
exempted from taxation by Virginia
that contributions to its "educa-
tional and patriotic" work were tax
exempt. and to, use any such con-
tributions for paying taxes would be
in violation of the purpose for which
the gifts were made.
Senator Cain said he personally
opposed exempting the Lee founda-
ton from local taxes but told Mrs.
Hawes he would pay out of his own
pocket the $2.48 annual District
levy.
| Asked after the hearing II he
meant for this year only, the Serla-
tor said he would pay the Lee taxes
las long as they want me to pay it."
In recommending rejection OF
bills which would exempt from local
taxes here the property OF the
American Legion and the Reserve
Oficers' Association, Senator Cain,
veteran of World War II. ex-
planned he was a member of both
groups.
But, he explained, the District
! faces such a difficult fiscal situa-
ton that he does not favor any
reduction of taxes now.
Working on Tax Bill
As chairman of the joint Fiscal
Relations Subcommittee of House
and Senate now working on new
local tax bill, he told the hearing,
I'VE don't know yet how We can
balance the 1948 District budget and
provide the essential services the
people of the District need and
deserve. This Is the big problem
now confronting U.S."
District Commissioner ]. Russell
Young opposed exemptions for all
three Of the patriotic groups as a
matter of principle.
Among the provisions of the Com
missioners' bill amending the gen.
eral tax-exemption law was one
providing that only that part OF
pastoral residence" of a clergy
man of any faith used as his resi-
dence would be free of taxation
This was interpreted to mean that
If part of the property were rented
out, that section would be taxable
| Witnesses for the American Le-
gion included John Thomas Taylor
national officer, and Herbert j
jacob, chairman Of the Clubhouse
Committee. Spokesman for the Re-
serve Officers' Association were
Senator Sparkman, Democrat, OF
! Alabama and Col. John P. Oliver,