STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE

The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 3704) to provide additional revenue for the District of Columbia, submit the following statement in explanation of the effect of the action agreed upon by the conferees and recommended in the accompanying conference report:

Amendments Nos. 1-18, 22-34, 40-121, 123-125, 134-137: These are technical amendments changing the title and section numbers of the House bill. The House recedes.

Amendments Nos. 19, 20, 21: The House bill defined "semipublic institution" (sales to which are exempted under the bill) to mean any corporation, and any community chest, fund, or foundation organized exclusively on a nonprofit basis for religious, charitable, or educational purposes, including hospitals. Senate amendments Nos. 19 and 21 strike out the phrase "on a nonprofit basis" and substitute the phrase "no part of the net earnings of which inures to the benefit of any private shareholder or individual" as one of the elements of the definition. Senate amendment No. 20 adds scientific institutions to the classes of institutions included within the definition. The House recedes.

Amendment No. 35: The Senate amendment exempts from the imposition of the sales tax sales of any food sold for human consumption in hotels, restaurants, cafes, bars, and other establishments where the sales price of the food furnished each individual patron (including any cover, minimum, entertainment, or other charge) is $1.50 or less. If the sales price is more than $1.50 the entire sales price is subject to the tax. The House recedes with an amendment which makes such exemption applicable only to such sales of food the price of which is $1.25 or less.

Amendment No. 36: The Senate amendment exempts publications of semipublic institutions from the imposition of the sales tax. The House recedes.

Amendment No. 37: The House bill exempted from the tax sales of medicines, pharmaceuticals, and drugs made on prescriptions of duly licensed physicians and surgeons and general and special practitioners of the healing arts. The Senate amendment provides that the sales of medicines, pharmaceuticals, and drugs shall be exempt whether or not made on prescription. The House recedes.

Amendment No. 38. This is a technical amendment to correct a typographical error. The House recedes.

Amendment No. 39: The Senate amendment exempts from the sales tax sales of cigarettes, which are subjected to a special tax under title VI of the bill (added by Senate amendments Nos. 132 and 133). The House recedes.

Amendment No. 122: The Senate amendment amends section 11 (k) of the District of Columbia Alcoholic Beverage Control Act relating to alcoholic beverage solicitors' licenses. Under the present

law a solicitor may represent more than one vendor under such a license. The Senate amendment would require that a solicitor have a separate license for each vendor he represents. The House recedes. Amendments Nos. 126 and 131: The Senate amendment No. 126 strikes out the language of the House bill fixing the effective date of title V of the bill. Senate amendment No. 131 restores the identical language at the end of the amendments added by the Senate to title V. The House recedes.

Amendment No. 127: The House bill contains no provisions for raising existing gallonage taxes on alcoholic beverages. The Senate amendment provides for substantial increases in all such taxes. The House recedes with an amendment. The following table shows the tax per gallon under existing law, under the Senate amendment, and under the conference substitute:

Amendments Nos. 128 and 129: The Senate amendments contain provisions relating to the transition from the existing rates for the gallonage taxes on alcoholic beverages to the new rates. The House recedes.

Amendment No. 130: The Senate amendment increases the existing tax on each barrel of beer from 50 cents to $1. The House recedes.

Amendments Nos. 132 and 133: Under the provisions of the House bill the 2 percent tax imposed on the gross receipts of vendors was applicable with respect to cigarettes. Senate amendment No. 39 exempts the sale of cigarettes from such tax. Senate amendments Nos. 132 and 133 add a new title VI to the bill, to be known as the "District of Columbia Cigarette Tax Act." Under the provisions of such Senate amendments a tax is imposed on the sale of cigarettes to consumers at the rate of 1 cent on each 20 cigarettes or fractional part thereof. The Senate amendments also provide that no person shall manufacture for sale, keep for sale, sell, or offer to sell cigarettes, or display cigarettes for sale in vending machines, without having first obtained a license or licenses. The licenses are to be of three kinds: Retailer's, vending-machine operator's, and wholesaler's. The Commissioners shall fix the fees for such licenses, but the rate shall not exceed $5 for each retail establishment in the case of a retailer's license, $5 for each vending machine in the case of a vending-machine operator's license, and $50 in the case of a wholesaler's license. The Senate amendments also provide criminal penalties for violations of the provisions of the new title VI, as added by the Senate amendments. The House recedes.

For the information of the Members of the House there is included the following estimate of financial status of the District of Columbia for the fiscal year 1950 under the provisions of H. R. 3704, as recommended by the conference committee:

Total sales and use tax estimate for 1 year as recommended by con-
ference committee.
Decrease in estimate as result of collections beginning 1 month after begin-
ning of fiscal year...

13,620,000

1,289,000

12, 331,000

1,850,000

14,281,000

2,400,000

800,000
490,000

JNO. L. MCMILLAN,
HOWARD W. SMITH,
PAUL C. JONES,
GEORGE J. BATES,

JOSEPH P. O'HARA,

17,971, 000

98,921,000

133,085

Managers on the Part of the House:

KENELM E. RUCKER

MAY 24, 1949.-Committed to the Committee of the Whole House and ordered to be printed

Mr. FRAZIER, from the Committee on the Judiciary, submitted the following

REPORT

[To accompany H. R. 601]

The Committee on the Judiciary, to whom was referred the bill (H. R. 601) for the relief of Kenelm E. Rucker, having considered the same, report favorably thereon with amendments and recommend that the bill do pass.

The amendments are as follows:

Line 6, strike out "5,000", and insert "2,500". At the end of bill add:

: Provided, That no part of the amount appropriated in this Act in excess of 10 per centum thereof shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not exceeding $1,000.

The purpose of the proposed legislation is to pay the sum of $2,500 to Kenelm E. Rucker, of Elberton, Ga., in full settlement of all claims against the United States on account of injuries sustained while a Reserve Officers' Training Corps cadet at Fort Benning, Ga., on January 28, 1943.

STATEMENT OF FACTS

It appears that on January 3, 1943, Cadet Rucker entered an officer candidate class at Fort Benning, Ga., and was assigned to a regular class composed of both ROTC cadets and enlisted men. While in the performance of directed physical exercises on January 28, 1943, he suffered a compound fracture of the right leg. It was treated by operation at station hospital, Fort Benning, and on February 20, 1943, he was transferred to Lawson General Hospital. While at Lawson he