5118 CONGRESSIONAL RECORD-SENATE MAY 31 By Mr. MONRONEY: den by reverent feet, and in little-patches The ACTING PRESIDENT pro tem­ H. R. 4901. .A bill to authorize and direct of foreign soil, where is kept the bivouac pore (Mr. DOWNEY), on May 30, 1944, the sale of. Moore. Air Field; to the Commit­ of our valiant dead;on countless graves 1758 > tee on .Naval- Affairs. signed the enrolled bill (S. to ' By Mr. VINSON of Georgia: we s·ee th'e cross and the fiag blending in amend section 451 of the Ta"riff Act of H. J. Res. 286. Joint resolution providing their mute testimony. May that cross 1930, and for other purposes, which had for operating navaL petroleum and oil:-shale interpret the fiag for our ~teadf:;tst yet been sign.ed previously.by the Speaker of reserves; to the Committee on Naval Affairs. anxious hearts in this dread hour as the the House of Representatives. By Mr. CELLER: sharpened arrow of our might is pulled H. J. Res. 287. Joint resolution to create a on· the· taut string of nation'al strength. CALL OF THE ROLL committee or Federal and State relations; May that cross speak to the fiag of Mr. GUFFEY. Mr. President, I sug­ to the Committee· on Rules. strength that is increased· by its spend­ gest the -absence of a· quorum. By Mr. HOFFMA_N: . . , H: IJ,es ..568. Resolution requesting infor-: ing, of life that is saved by .its losing, of The ACTING PRESIDENT. pro tern .. mation ·from the Attorney General as to greatness that is measured by its serving. pore. The clerk will call the roll. arrival of refugees; to the Committee on Im­ Our glad hearts rejoice that by the The Chief Clerk called the roll, and the migration and N'\tur~lizatlon. sacrifice 6f which that linked cross and following - Senators ·answered to ·their By Mr. VINSON of Georgia: . . ftag is th_e symbol- names: H. Res. 569. Resolution for·· the considera­ tion of H. R. 4771,. .bill to amend the part "O'er the mounds where sleep the slaugh­ Aiken Gr'een Reynolds a tered, Austin Guffey Robertson of the act entitled "An ac~ making· appro..: Bankhead Hatch Russell priations for the naval service for the fiscal Fired by hopes for which they died, Bilbo Hawkes Shipstead year endin_g Jl,me 30, 1921, and for othE~r pur­ Lured by dreams which arched their Buck Hayden Stewart pose~,'' app\oyed ~une 4, 1920, .as am.e?ded, heavens- ·. Burton Holman Taft relating to· the conservation, care, custody, Butler Ja~kson Thomas, Idaho Human rights so long denied; Byrd Johnson, Colo. Tobey protection, and operation· of tlie naval petro­ From the jealous feuds of ages Capper La Fol!ette Truman leum and oil-shale reserves;· to' the Com­ Moves a conquering· army's van; Carawf!y McClellan Tunnell mittee on Rules: . Chandler McFarland Vandenberg ·'Tis the .crusade of the nations Chavez· McKellar Wagner . For the brotherhood o{ man." . Connally· Mayl;>anlt Wallgren ~E';f'ITIONS, ETC. Cordon Mead Walsh, Mass. Amen. ~ Under clause 1 of rule XXII, petitions D:maher 'Mi1l1kin Waleh.N.J. 'THE JOURNAL Davis Murdock Weeks and papers 'were laid .on the Clerk's desk Downey Murray Wheeler and referred as fotlows: On request .of .. Mr. GuFFEY, and by Eastland Nye Whercy Ellender O'Daniel White 5768. By Mr. LAMBERTSON: Petition of unanimous consent, the· reading of the Fergueon O'Mahoney Wiley Mrs. Nehard Hansen and 41 other citizens of Journal of. the proceedings of-the calen­ George Overton Wilson Waterville, Kans., requesting that cotton ma­ dar day Monday, May 29, 1944, was dis.:. Gerry Radcliffe · terials and overalls which ate now being pro­ pensed with, and the Journal was ap­ GUiette Reed duced be placed at · their disposal that they proved. Mr. GEORGE. I announce that the may continue .to bring about tbe prodl,lCtion of essential foods; to the Committ$le on Ways MESSAGES FROM THE, PRESIDENT- · Senator from Washington [Mr. BoNEJ and Means. , _ · APPROVAL OF A BILL ' and the Senator from Virginia LMr. GLASS] are absent from the Senate be­ 5769. By Mr. ROLPH: . Resolution of Native Messages ~n writing from the Presi­ Sons of the Golden West, Grand Parlor, San cause of illness.· Francisco, Calif., relating to House bill 238; dent of the United States were com­ The Senators from Nevada [Mr. Mc­ to the Committee on the Judiciary. municated to the Senate. by Mr. Miller, CARRAN and Mr. SCRUGHAM] are absent on .one of his secretaries, and he announced 5770. Also, resolution of Native Sons of the cfllcial bu~iness. Golden West, Grand Parlor, San Francisco, that on May 29, 1944, the President had The Senators from Florida [Mr. AN­ Calif., relating to amending the reclamation approved and signed the act (S. 683) to law limiting the use ·or project water· in the provide· for the recognition of the serv­ DREWS and Mr. PEPPER], the· Sen a tor operation and administration of the Central ices of the civilian officials and em­ from Idaho [Mr. CLARK], the Senator Valley project; to the Committee on the ployees, cifizens of the United States, en­ from Missouri [Mr. CLARKl, the Senator . Public Lands. gaged in and about the construction of from West Virginia [Mr. KILGOkEJ, the 5771. Also, resolution of Native Sons of the Senator from Illinois [Mr. LucAs], the Golden West, Grand Parlor, San Francisco, the Panama Canal. Senator from Connecticut lMr. MA­ Calif., relating to taxation of federally owned MESSAGE FROM THE HOUSE LONEY], the Senator from South Caro­ lands; to the Committee on Ways and Means. lina fMr. SMITH] , the Senator from Okla­ 5772. By the SPEAKER: Petition of the A· message from the H.ouse·-of Rep:re- 1 director,· political action committee, ·Local sentatives, by Mr. Maurer, one of its homa [Mr. THOMAS], the Senator from 840, United Automobile-Aircraft-Agricultural reading clerks, announced that the Utah [Mr. THOMAS], and the Sena­ Implement Workers of America (U. A. W.­ House had passed without amendment tor from Maryland [Mr. TYDINGS] are C. I. 0.), petitioning consideration of their the bill

Under the circumstances it appears that cannot be agreed upon, th~ conferees I am not opposing the reduction in the perhaps the Government will lose money would be in the best possible position to cabaret tax. I am inclined to favor the on account of having the tax so high. It adopt a reasonable rate, which would not reduction of the tax; but I strongly would seem that an amendment such as destroy the businesses of these people, object to reducing the cabaret tax to. the one offered by the Senator from Cali­ and would not materially hurt the in­ accommodate a few tooters of horns and fornia should be adopted by the Senate. come of the Government. It might be a few frolicking citizens of the country, I do not think anyone wishes to close bus­ that 11 percent, 12 percent, or some other while at the same time leaving a 20 per­ inesses. I know we do,not. I know that percentage would, under the facts, be a cent tax on 95,000,000 poor people of the no Senator would wish to close such bus­ reasonable tax. The conferees could de­ Nation whose only means of recreation iness places or amusement places, if we termine the proper tax. In order to is the small theater in the small towns. can call them that. Especially is that bring about that result, I hope that the It is all right to reduce the cabaret tax true if the Government will lose money amendment will be agreed to. 10 percent, but let us reduce the tax on by reason of the increased tax, either Mr. DOWNEY. Mr. President, I thank theater admissions to the same per­ through the closing of various places­ the Senator. In view of his persuasive centage. Let us treat the two elements and some of them undoubtedly will be remarks, I shall not present further alike, although one is a means of recrea­ closed, ·even in these prosperous times­ argument. I only want to say that the tion for 95,000,000 people, and the other or through the reduction of their reve­ senior Senator from Nevada [Mr. Mc­ a means of recreation for only a very nues. It is certain that the revenues of CARRAN] who offered the pending amend­ small percentage of the population. The such plij.ces will be reduced to so great an ment on his own behalf and mine is un­ cabaret caters to those who have money extent that the uovernment will receive avoidably absent from Washington. I to spend, while the theater is a means of more revenue if the tax rate is reduced. regret that he is not here to present this entertainment for poor people who have 'l hope very much that the amendment matter in his usually eloquent and force­ only a very small amount to spend. The of the Senator from California will be · ful way. 20-percent tax on the small theaters agreed to. Mr. BILBO. Mr. President, I wish to works a hardship on small places of Mr. DOWNEY. Mr. President, I tha-nk make a few observations with regard to amusement in their effort to continue the Senator very much. I appreciate the amendment offered by the Senator in operation. They are suffering, as the the contribution he has made. While from California. owners of cabarets are suffering, because · my mind is not particularly set upon the My distinguished colleague from Los of a reduction in their revenues. The largest and most noted cabarets of the Angeles [Mr. DoWNEY] and my friend theaters depend upon the attendance of. country, undoubtedly what the distin­ from Memphis [Mr. McKELLAR] hail the poor people, to whom a few nickels guished Senator from Tennessee has in­ from large cities with populations of 300,- and dimes mean something in their dicated is true all over the Nation; 000, 500,000, or more. They feel very everyday life. namely, that the large cabarets are giv­ keenly the injustice which has been done I take this occasion to remark that the ing up their taxable entertainment. the cabaret business by the 30-percent ownef·s of juke joints and cabarets have In order to understand just how this tax. contributed absolutely nothing to the increased tax operates, it might be in­ However, I happen to come from a ' war effort except to furnish a place to teresting to consider the small courthouse town in Mississippi, spend money and have a good time. cafe, in . I am advised which has no cabarets or juke joints. but What have the motion-picture theaters that that cafe has ~ gross income of which does have theaters. I shall offer done? They have been contributing in $100,000 a month. When there was a an amendment, when it shall have been every way toward every war activity, in­ 5-percent tax on such entertainment, the properly prepared, providing that wher­ cluding the Red Cross drive, the War Government received $5,000 a month in ever a 20-percent tax on theater admis­ bond drive, the WAC enlistment drive, taxes from the establishment. There sions is found in the Internal Revenue the fats and salvage drive, and the was a total expenditure of approxi­ Code of 1944, a 10-percent tax be sub­ infantile paralysis driv.e. They are also mately $10,000 a month for entertain­ stituted, which would be in keeping with using the power of the screen to keep ment in that cafe. All such entertain­ the amendment offered by the Senator Americans thinking along the right lines ment at the cafe, exc3pt for music, has with regard to cabarets. as we make the greatest effort of our now been given up, for the Government Every week 95 ,000,000 American peo­ lives in the present World War. Those does not tax an establishment which ple--men, women, and children-attend engaged in the motion-picture industry provides only music. The cost of enter­ the theater. I wish Senators to keep that have been contributing weekly, monthly, tainment at that cafe has been cut ap­ figure in mind. The figures show that and yearly to the success of our war proximately in half, or to approximately every· week 95,000.000 of the 134,000,000 drives of every sort. Without their $5,000 a month, and the cafe pays no American people attend motion-picture efforts such drives would not be nearly tax at all to the Government because of theaters, which are found in every ham­ so successful. The motion-picture thea­ the music, which now ~r the only enter­ let, village, and city of the Nation. It ter owners are being penalized by a tax tainment provided there. Neither the would be unfair to reduce the 30-percent of 20 percent in order that they may owner nor his patrons can afford to pay tax on cabarets, where only a very small carry on. In many instances the tax $30,000 a month in taxes upon entertain..: percentage of .the populatitm goes for burden is passed on to the rank and file ment which costs only $5,000. Th~t. in amusement and recreation, to 10 per­ of the people. effect, is imposing a governmental bur­ cent, and leave the tax at 20 percent on We are asked to reduce the 30-percent den, by way of taxation of six times as 95,000,000 of the masses of poor people tax on cabarets to 10 percent. Such a much, as the cost of the cabaret enter­ and children of the Nation. reduction would affect only those who tainment itself. Clearly such a tax is so We all understand that cabarets and have money to spend having a good illogical that it cannot be successful. time in the cities. I admit that inci­ Mr. McKELLAR rose. juke joints are patronized by the well to dentally such places furnish employ­ Mr. DOWNEY. I yield to the Senator do, the playboys, and the frolicking ele­ ment to a very small class of musicians from Tennessee. ment of our population. Children are an'd entertainers. As I have said, I am Mr. McKELLAR. Mr. President, let not admitted to cabarets This amend­ not opposed to the reduction in that me suggest another matter to the Senator ment is an attempt to give relief in con­ tax, but'it would be manifestly unfair to at this time. A reduction from 30 per­ nection with a means of recreation for a reduce the tax on ·cabarets to 10 percent cent to 10 percent is, of course, quite a small percentage of our population. As and leave the 20-percent tax on theater large reduction, but it seems to me it will I understand, the spo~sorship of the admissions. If the cabaret tax were re­ have to be agreed upon and straightened amendment, in addition to the authors duced, and the theater tax left where out in conference. I very much hope of the amendment, comes from the music it is, more hell would be raised over that the Senate will adopt the amend­ monopoly. It has an alphabetical name. those two taxes than we have ever heard ment reducing the tax to 10 percent. I This is the day of alphabetical names. in connection with the cabaret tax. am really addressing myself to my good The amendment is sponsored by ASCAP, If we are to reduce . the cabaret tax friend from Georgia [Mr. GEORGE] the the music monopoly. It is malting a from 30 percent to 10 percent, let us at chairman of the committee. If it should drive on Congress''to reduce the 30-per­ the same time reduce the 20-percent be found in conference ~hat 10 pei·cent cent tax to 10 percent. theater tax to 19 perc_ent, and let the two 5124 CONGRESSIONAL RECORD-SENATE MAY 31 amendments go to conference to be ad­ Committee on Banking and Currency. I assume that if the Senator from Ohio justed, so that justice may be done to If the chairman of the committee intends wishes to read into the language after 95,000,000 poor people whose only means that it shall be accepted as a part of the "supplemental statement," the words "as .of recreation and pleasure is the theater. report, I ask for permission to :f:lle dis­ an exhibit" and so designate the part to The motion-picture theater owners have senting minority views. which he has referred, no harm would contributed greatly to the war effort, The PRESIDING OFFICER. Is there be done. I assume that if that course whereas the cabarets have done abso­ objection to the request of the Senator were followed, the status of the matter lutely nothing but rake in the golden from Ohio? The Chair hears none, and in the mind of the Senator from Ohio shekels. it is so ordered. · would be entirely clarified. EXTENSION OF PRICE CONTRbL AND Mr. DANAHER. Mr. President, I Mr. TAFT. Not at all, because the STABILIZATION ACTS should like to invite the attention of the chairman of the committee says that it Senator from Ohio while I note that it is is a part of the committee report, and Mr. TAFT. Mr. President, the Com­ my belief his fears are unfounded. · I inasmuch as he says that, I wish to state mittee on Banking and Currency has first point out that on page 1 of the docu­ my dissent from it and my intention to submitted an explanation of Senate ment known as Report No. 922, there ap­ file minority views. If it is submitted as . bill 1764, to amend the Emergency Price pears the headline "General statement." an exhibit by the Price Administration Control Act nf 1942 a~ amended by the Those words. were not in the memoran­ stating .their side of the case, very well, act of October 2, 1942, together with a dum upon which the Senator from New I have no objection; but certainly it report thereon. The report contains a York [Mr. WAGNER], the Senator from seems to me it is at least ambiguous and, general statement and also a supple­ Maryland [Mr. RADCLIFFE], and I agreed. since the chairman of the committee mental statement. I wiah to say that I I have no doubt, however, that they have says it is a part of the report, I assume wholly dissent from the supplemental been interpolated by the legislative that it is so intended to be. The chair­ statement. The report is ambiguous with draftsman with the view to explaining man seems to differ from the Senator respect to whether the supplemental the basis upon which the report pro­ from Connecticut. statement is a part of the report. It was ceeds. .Mr. WAGNER. There is no difference clearly my understanding that it was On page 3, in similar size type, there at all. The supplemental statement is not to be a part of the committee report: will be found the words "Text of re­ added as a part of the report, of course. Yet, the general report, in which I con­ ported bill." What else could it be but a supplement cur, does not make it at all clear to my At the top of page 8, in similar size to the report? mind that the supplemental statement is type, there will be found the heading not a part of the committee report. It Mr. TAFT. It is not a fair compila­ "Explanation of reported bill .., tion of the evidence that was adduced s~ ems to be a statement prepared by the Similarly, at the top of page 20 we find before the committee. It wholly omits Office of Price Administration which has the heading "Minority views." Obviously all the critical evidence; it wholly omits never been approved by the committee, those minority vi-ews are the views stated two-thirds of the witnesses who appeared and does not in any way represent, in by the senior Senator from New York before us and submitted a series of ob­ my opinion, the proper summary of the [Mr. WAGNER], the .senior Senator from evidence which was submitted to the jections t.:> the manner in which the Price Virginia [Mr. GLAss], t""e senior Senator Administration· has been operated. It committee. If there is any question from Connecticut [Mr. MALONEY], the only summarizes the Price Administra­ whatever about it being a part of the junior Senator from Maryland [Mr. RAD­ tion's case. I think if it is to be there report, I desire to file minority views. CLIFFE], the junior Senator from Utah at all, it ought to be purely as an exhibit I do not know whether the chairman [Mr. MURDOCK], and the junior Senator of the Price· Administration. It is there of the· committee regards the supple­ from Connecticut [Mr. DANAHER]. But mental report as· a part of the general now; but I wish to express my dissent granted that they are minority views, so from it, and my intention to file minority report. However, I should like· to know · submitted, and so incorporated in Report views. I have done my best throughout whether he does so regard it, because if No. 922, obviously they are not the report the hearings to reach a conclusion upon it is a part of the general report I de­ of the majority of the committee, and sire to file dissenting views. which the whole committee could agree, that fact is so designated therein. but if this is to be a part of the report Mr. WAGNER. Mr. President, it is a Mr. WAGNER. Mr. President, will the my efforts along that line have come to part of the report submitted by the full Senator yield? an end. committee. As the Senator will recall, Mr. DANAHER. I should like to make Mr. DANAHER. Mr. President, I un­ a subcommittee was appointed consisting my next point if the Senator frolll New derstand, of course, the point the Sena­ of three Senators, namely, the junior York will forbear. tor from Ohio is seeking to make, but I Senator from Maryland [Mr. RADCLIFFE], Mr. WAGNER. Very well. still insist that he is going afield from the junior Senator from Connecticut Mr. DANAHER. At the top of page 26 the way we looked at the matter in the [Mr. DANAHER], and myself. All mem­ 1 bers of the committee on the side of the there appears the heading 'Supplemen­ committee when we had the subject un­ Senator from Ohio agreed to abide by the tal statement." Following that appears der consideration. For example, let us views as outlined by the junior Senator this language: take one of the graphs. I happened by from Connecticut. The supp!emental statement which the accident to have turned to page 34, where committee has caused to be attached is as I find this: Mr. T AFr. However, the full report follows: · was submitted to 'the committee. The Each week we get 4,500,000 telephone calls. committee' disagreed with it. Now, where did we cause it to be at­ Mr. President, it is perfectly clear that It was agreed that there should be a tached? If we will refer back to page 3, what is being referred to there is the general report submitted, and that the we will find that the concluding para­ Office of Price Administration; the ref­ supplemental statement should be at­ graph of the general statement reads as erence is not to Senators and not to the tached as an exhibit, to which I had no follows: committee, although I admit there are objection. It was not, however, to be a The hearings on these measures have been weeks when it seems to me that I get part of the report. The subcommittee to so voluminous ~nd so many witnesses have 4,500,000 telephone calls. The fact is which the matter was referred, consist­ appeared that the record includes more than that no part of the findings of the Senate ing of the Senators Whom the Senator 1,600 pages of testimony, graphE:, and other pertinent data. For the convenience of the Committee on Banking and Currency. has named, was authorized to carry out Senate, the committee has caused to be at­ It goes on to say: the wishes of the committee, but it was tached a supplemental statement which will Two million five hundred thousand let­ distinctly understood that the so-called be found to abstract relevant material of as­ ters- supplemental statement was not to be a sistance in understanding the background of part of the report. In my opinion, it has such problems as rationing, wage and salary An actual count in our offices will not simply incorporated all the evidence of stabilization, rent control, and other phases run quite so high, I admit--- the Office of Price Administration, which of our wartime stabilization program. At 6,000 applications for price increases, 1,500,- appropriate points this statement includes il­ 000 personal calls at 0. P. A. offices. constitutes a propaganda statement of lustrative graphs submitted by the Office of the position of' the Office of Price Admin­ Price Administration in the course of its It seems to me that a reference to the istration. It never was approved by the presentation. statement itself which is attached as a 1944 CONGRESSIONAL RECORD-SENATE 5125 supplemental statement will disclose that he would probably look mostly at the There being no objection, the bill in fact that is all it is. I hope with this graphs. (H. R. 2085) to provide for the disposi­ explanation the Senator from Ohio will Take page 46, from which I read: tion of tribal funds of the Minnesota concur ultimately. Has price control hurt small businessr Chippewa Tribe of Indians was consid­ Now, let me say further that, while it ered, order·ed to a third reading, read is true that in the compilation of this Then there is a series of figures tend- the third time, and passed. supplemental statement the omce of ing to show that small business has been Mr. SHIPSTEAD. With a view to the Price Administration, of course, had a benefited. Those figures are absolutely indefinite postponement of Senate bill great deal to do with its format and at variance with the figures of the Com­ 873, to provide for the disposition of trib­ preparation, it was under the super­ mittee on Small Business of the Senate. al funds of the Minnesota Chippewa vision of our legislative draftsmen, and They were prepared by the Price Admin­ Tribe o: Indians, I now enter a motion much of it was the work of Mr. Charles istration to prove their case. I do not to reconsider the vote by which the bill S. Murphy, the assistant legislative coun­ think they are actually in accord with was passed, and move that the House be sel, who was in constant attendance upon the facts at all. requested to return the bill to the Senate. our executive sessions. Take the statement about rents on The PRESIDING OFFICER. The mo­ Mr. MURDOCK. Mr. President, will pages 50 and 52. On page 50 is shown tion to reconsider the vote by which Sen­ the Senator yield? the fact that no rents have been in­ ate bill873 was passed will be entered. Mr. DANAHER. I am glad to yield. creased at all, but on page 52 the whele The question is on agreeing to the Mr. MURDOCK. It seems to me that thing is contradicted by saying that motion of the Senator from Minnesota the supplemental statement heading to "9,994 :,mall buildings show net operat­ that the House be requested to return which the Senator from Ohio objects is ing income up 44.4 percent." Certainly, Senate bill873 to the Senate. the very language that was mentioned if the small buildings were occupied by The motion was agreed to. during the discussions of the committee. tenants and there had been no rent in­ It was understood, as he says; that it creases, the landlord's costs certainly in­ INCREASE IN LIMITATION ON NATIONAL would accompany the report either un­ creased. The two things contradict each DEBT der the heading of an exhibit or as a other on their face. The Senate resumed the consideration supplemental or added statement. As I I think it was not intended that it be of the bill point a letter from Mr. Edward Flore, SON in the chair). Without objection, consequences were no deterrent :to the in-, general president of the Hotel and Res­ the clerk will read as requested. crease and a 30-percent rate was justified. In taurant Employees International Alli­ The legislative clerk read as follows: addition, it was recognized that it is not un­ ance, together with a resolution adopted TREASURY DEPARTMENT; usual in the case of new or increased excise­ unanimously by the executive council of Washington, May 18, 1944. tax rates for the volume of business to decline the American Federation of Labor. The Hon. WALTER F. GEORGE, temporarily, the decline t o be followed by a Chai1·man, Committee on Finance, recovery and stabilization at the new tax letter is as follows: United States Senate, level. .Unt11 there is available information HOTEL AND RESTAURANT EM- · Washi ngton, D. C. sufficiently reliable to indicate that these ef­ PLOYEES' INTERNATIONAL ALLI- MY DEAR MR. CHAIRMAN: Further reference fects are considerably greater than was an­ ANCE AND BARTENDERS' INTER­ is made to your letter of May 3, 1944, en­ ticipated, consideration of a change of rate N.~TIONAL LEAGUE OF AMERICA, closing a copy of i:lenate Joint Resolution 126 would not appear to be justified. Ci ncinnati, Ohio, May 26, 1944. (78th Cong., 2d sess.), entitled a "Joint reso­ One technical observation concerning the Hon. JAMES M. MEAD, lution to reduce the tax on admissions to resolution should be made. The increase tn Senate Office Building, caba!'ets, roof gardens, and similar enter­ the cabaret tax was made, along with other Washington, D. C. tainments," for consideration and report. war tax increases, through the enactment of DEAR SENATOR: The enclosed resolution was The bill proposes to amend section 1700 section 165() of the Internal Revenue Code, adopted unanimously by the executive coun­ (e) (1) of the Internal Revenue Code by and not by an amendment of section 1700 cil of the American Federation of Labor. striking out "30 percent" and inserting in (e) (1). The resolut ion should, therefore, Kindly read it into the records of the lieu thereof "10 percent." The amendment be directed to that part of section 1650 re­ United States Senate. would be applicable only after 10 a. m. on lated to the rate of tax imposed by section Sincerely yours, t ::e first day of the first month after the 170C (e) (1). EDWARD FLORE, enactment of the resolution. The Director, Bureau of the Budget, has Gen eraL Pr es ident. Sec'!;ion 302 of the Revenue Act of 1943 advised the Treasury Department that there is no objection to the presentation of this The resolution enclosed in the letter increased the rate of tax imposed by section 1700 (e) ( .? the Internal Re >'enue Code from repQrt. A copy of their letter is attached. reads as follows: 5 percent to 30 percent, effective 10 a. m., Very truly yours, Whereas the so-called cabaret tax, the April 1, 1944. When it first passeq the act, JOHN L. SULLIVAN, tax on amounts paid by guest in hotel dining the House of Representatlves voted a 30- Acting Secretary ot the Treasury. rooms, restaurants, roof gardens, cabarets, percent t ax on cabarets and a 20-percent tax EXECUTIVE OFFICE OF THE PRESIDENT, and the like, was increased sixfold, from on general admissions. In the Senate the BUREAU OF THE BUDGET, 5 percent to 30 percent by the Revenue Act cabaret tax was likewise fixed at 20 percent. washington, D. C., May 17, 1944. of 1943; and The House provisions subsequently prevailed The honorable the SECRETARY Whereas the increased tax has proved ex­ in the conference report which the Congress OF THE TREASURY. cessive, in that it has caused many hotel adopted. DEAR MR. SECRETARY: This Will acknowl­ dining rooms, restaurants, roof gardens, Since the effective· date of the legislation edge the receipt of the letter of May 15, cabarets, and the like to discontinue furnish­ two cl.anges in the cabaret trade have been 1944, from Administrative Assistant Bell, ing entertainment to patrons; and reported. First, it is asserted that there has transmitting the original and two copies o! Whereas as a result of the increased tax been some reduction in the volume of busi­ your proposed report to the chairman of many musicians, waiters, entertainers, and ness of places subject to the cabaret tax. the Senate Committee on Finance, relative other .employees have lost employment; and Second, it is reported that adjustments are to Senate Joint Resolution 126, a resolution Whereas members of the armed forces and being made in the manner in which these To reduce the tax on admissions to cabarets, persons of moderate inco.me and means have places are operated, designed either to re­ roof gardens, and similar eutertainments. been denied a source of entertainment, in move a particular place of business from the The resolution would reduce from 30 per­ that such persons cannot afford to pay a coverage of the tax or to reduce the cus­ cent to 10 percent the tax on admissions SO-percent tax on the amount spent in hotel tomer's bill to which the SO-percent tax is to cabarets, roof gardens, and similar enter- 1944 CONGRESSIONAL RECORD-SENATE 5127 tainments. Your proposed report discusses measure. I regardert it as a matter of with greater or less severity in different the effect on Treasury revenues of such a revenue, and I am still of the opinion places of the country upon the service reduction, and indicates that there is not that a 30-percent tax on cabarets will men and women who are on furlough or available sufficiently satisfactory .informa­ tion to show that continuance of the pres­ produce less revenue ·than a 20-percent who have returned from actual service ent 30-percent rate w111 result in any such tax, or even, perhaps, a 15-percent or a abroad. It has seemed to me that it is decrease in trade as to require the establish­ 10-percent tax. a sad thing that the Treasury Depart­ ment of a lower rate for the purpose of - But, Mr. President, I could not ap­ ment had to evolve a particular tax maintaining the revenue level contemplated prove, and I hope the Senate will not which fell so heavily on them·. As I have by the 30-percent rate. approve, a cabaret tax of 10 percent,·pri­ already stated, I tl;link that in Califor­ In reply, you are advised that there would marily for this reason: We are- in war. nia at least half the tax is now being be no objection to the submission of the Taxes are high; some of them extre:r;nely paid by servicemen and servicewomen. proposed adverse · report to the committ'ee, the original of which report is returned high; but they are war taxes. That is It is true we have a 20-percent inovie herewith. the only justification for them. The tax, but it should be noted that the ·serv­ Very truly yours, House and the Senate placed a tax of. icemen and women are exempted from PAUL H. APPLEBY, 20 percent on ordinary ~missions, and­ paying it. · Acting Director; I do not see how we can JUStify a tax of Would the. distinguished chairman of. 10 percent on the cabarets and yet collect the commit,tee thin~ it would be ·pi_'oper _ Mr. GEORGE. Mr. President, I have a 20-percent tax from· the ch.ildren of to take _to conference. for further con­ asked that the ·letter be read at the the country and persons who wish to go sideration . by the Treasury, an·- amend­ deslr in or<1H that the Seiiate . might to tlie ordinary, moving-picture theaters. ment to have the cabaret tax made 20 kn,·w the position taken by the Treas­ If the Senator will noLagree to a 20- · percent, but at the same time exempting Ury Department. When this matter percent tax, I think I shall have to move. the service men and womenQf the Nation arose in connection with the tax simpli-' t_o ·amend his amendment, because mY from paying even that tax? I am very fication bill, I stated that I ' personally judgment Js that the cabaret tax should_ sure. that 90 percent of. the American would not offer objection to an amend- . . not be more than 20 percent, ·and that people would immediately ·say "aye,. to ment reducir.g the cabal·et tax, but I . it should remain in line with the. other, such a proposal, and I believe it would stated at the same 'time;that when this' so-cailed luxury taxes,. especially the. remove a sore spot from the· hearts of matter arose -in the Se11ate Finance taxes on general admissions, which now many of the service men an_d women. ._ Commi-ttee it was the opinion of the· ma­ are 20 percent, as I have already stated: · Mr. GEORGE. ·Mr. President·, I would j.ority of the members of the committee At the same time lam convinced that' the not oppose an amendment of that kind. that the cabaret tax should be brought present cabaret tax will really_result in I think it would be very difficult for us to into line with the tax imposed on other a dedine in revenue. ; secure favorable action on it by'the con- so-called 'uxury entertainment or ar­ I should like to state further that my· . ferees~ in view of the fact that we _pre-_ ticle~ whicl1 were subjected t0 tax. observation has been that when_ the viously had the·- same question, or -sub­ The Senate Finance Committee recom­ members of the armed services, who are stantially the same one.. But if the mended a tax of 20 percent on cabarets." away from their homes, unacquainted in amendment is limited only to the tax on Subsequently the Senate approved that the cities .and towns which are located servicemen in uniform, I have rio :Objec­ recommendation, and also approved an near their camps or wherever they·may tion to it, because that was precisely amendment offered by the distinguished be stationed, have a day or 2 days off, what the Senate approved on a vote Senator f'rJm California lMr. DowNEY] they wish to have some form of recrea­ when the tax bill was before it. How­ exempting from the tax men and women tion or entertainment. They do not ever, I am afraid we would not be able in m1iform. · know the people of the city or of the to sustain it in .conference. ~ The tax bill, after passage in the nearby ·village. They feel at liberty to go Mr. DOWNEY. Mr. President, am I Senate, went to conference, and the to a place wh'ere there is a little music­ to understand, at least, that the distin­ House conferees, backed by strong state­ and some dancing. A 30-percent tax guished chairman of the committee is ments from the Treasury Department, thus levied on the men and women in the willing to accept that modification of the insisted that the provision exempting armed services, which is the effect of the amendment, namely, to have the amend­ se.rvice men and women from the cab­ cabaret tax, is a tax which very greatly ment made 20 percent, instead of 10 per­ aret tax would make the whole cabaret affects the attitude of the servicemen, cent? tax administratively impossible, and the and is a very great injustice to them. Mr. GEORGE. If it is made 20 per­ House conferees also insisted strongly But a reduction of the tax to 20 per­ cent, and if the exemption is limited to on the 30-percent rate on cabarets which cent is the only reduction I could favor men and women in uniform. the House had previously a