This mistake was promptly corrected by the act approved March 2, 1901 (31 Stat., 946), as follows: Provided, That nothing in this section shall be construed to apply to bequests or legacies for uses of a religious, literary, charitable, or educational character, including all bequests or legacies of such character on which the tax imposed had not been paid or collected on March 1, 1901. In the debate on this bill in the House of Representatives December 11, 1900, Fifty-sixth Congress, first session (Cong. Rec., p. 248), the following statement was made by Hon. Sereno E. Payne, chairman of the House Committee on Ways and Means, who was also a member of that committee in the previous Congress, when the revenue act of June 13, 1898, was passed: Mr. PAYNE. Now, in framing the bill in 1898 the Senate put a provision upon the bill putting a pretty high tax upon legacies and bequests of personal property, and no exception was made as to any class of bequest for charitable, religious, or educational uses. The matter was not called to the attention of the conference committee when we agreed upon that. If it had been, I have no doubt the conference committee would have suggested an amendment in that part of the law, because there is no excuse for taxing bequests to charitable, religious, and educational institutions, and I do not suppose there is a Member of this House who would insist at any time under any stress of circumstances on imposing a tax upon legacies of that character. Out committee have eliminated that from the law, and these bequests will no longer be taxed under this bill. Mr. Cox. I want to get this proposition, distinct and plain in this proposed bill. Now, a good citizen makes a bequest in his will and gives his property to an educational institution. Is that tax taken off? Mr. PAYNE. Under this bill we have removed all taxes on legacies of that kind. From above statement it appears that the entire provision for taxing collateral inheritances and bequests was inserted by the Senate and was never considered by the House Ways and Means Committee, and that the attention of the conference committee was never called to that provision, otherwise it would have eliminated the tax on the bequests in question. In the Senate this provision repealing the tax on such bequests was passed without a word of objection or debate. All taxes collected from bequests for education, religion, and charity under the act of 1898 were repaid by act of June 27, 1902. By act approved June 27, 1902 (32 Stat., 406), the Secretary of the Treasury was directed "to pay to the corporations, associations, societies, or individuals, as trustees or executors, such sums of money as have been paid by them as taxes upon bequests or legacies for uses of a religious, literary, charitable, or educational character under section 29 of the act of June 13, 1898." The entire amount collected from such institutions was thus directed to be repaid. A full list of the institutions to which the refund was made appears in the report of the Committee on Ways and Means of the House of Representatives. (H. Rept. 1702, 57th Cong., 1st sess.) The The aggregate sum thus refunded was $889,465.65, including refund to Harvard University of $78,924.48, to Massachusetts Institute of Technology $58,500, and refunds to Yale, Columbia, Williams, Vassar, Roanoke, Tufts, Worcester, Polytechnic Institute, Berea, Doane, Colorado, Vermont University, Norwich University, New Hampshire College of Agriculture and Mechanic Arts, Dartmouth, Boston University, University of the South, Wesleyan University, Vanderbilt University, Sherman Collegian Institute, Hebrew Union College, Haverford, Lafayette College, Converse College, etc. This bill (H. R. 13204), which provided for refund of all taxes collected from such institutions under the act of June 13, 1898 (Cong. Rec., 57th Cong., 1st sess., p. 5565), was presented on the floor of the House of Representatives by Hon. S. W. McCall, of Massachusetts, a member of the House Ways and Means Committee, as follows: Mr. MCCALL. Mr. Speaker, this bill was referred to the Committee on Ways and Means, and that committee, after considering it, thought it a wise bill to be reported. While the war revenue act would bear the construction that taxes should be imposed on legacies to hospitals, schools, libraries, and the charities of the country generally, yet I think I venture nothing in saying that there was no man in either House who contemplated that result from the act. The taxes imposed under that act were not merely the amount imposed in cases where the legacy was left to a brother or equally near relative, but in cases where the property passed to persons remote in blood and to strangers in blood. That is to say, the highest tax was imposed upon charitable legacies, amounting in some cases, I think, to 15 per cent. Let me say further as bearing on our intention, that the very first thing repealed when we dealt with the war revenue act was this taxation upon legacies to charitable and religious institutions and other institutions of that kind. We did not believe it was the intention of the Government of the United States to go down into the contribution boxes of the country. We thought that that money burned in the National Treasury and that the vindication of our national character required that it should be refunded. Mr. CLAYTON. This measure met the unanimous approval and judgment of the Committee on Ways and Means, did it? Mr. McCALL. As I understand it, the committee were unanimously for it; one gentleman suggested a certain amendment which was not thought wise to be adopted. Mr. RICHARDSON of Tennessee. It was the unanimous action of the committee. They were all in favor of the bill. Mr. CLAYTON. I am entirely satisfied with the explanation. The SPEAKER. Is there objection? There was no objection. The bill as amended was ordered to be engrossed and read the third time; and it was accordingly read the third time and passed. In the Senate the bill was presented on June 17, 1902 (Cong. Rec., p. 6935), by Senator Aldrich, chairman of the Finance Committee, as follows: Mr. ALDRICH. I ask unanimous consent for the present consideration of the bill (H. R. 13204) to provide for refunding taxes paid upon legacies and bequests for uses of a religious, charitable, or educational character, for the encouragement of art, etc., under the act of June 13, 1898. The bill has the unanimous approval of the Committee on Finance, and I think will cause no discussion whatever. There being no objection, the Senate, as in committee of the whole, proceeded to consider the bill. The bill was read a third time and passed. The title was amended so as to read: "A bill to provide for refunding taxes paid upon legacies and bequests for uses of a religious, charitable, or educational character, for the encouragement of art, etc., under the act of June 13, 1898, and for other purposes." Period from June 27, 1902, to October 3, 1913: During this period there was no Federal law imposing a tax upon collateral inheritance or bequests. Period from October, 1913, to the present, January 1, 1920: In every one of the revenue acts from October, 1913, including the act of October 3, 1913 (38 Stat., 172), act of September 8, 1916 (39 Stat., 766), act of October 3, 1917 (40 Stat., 319), act of February 24, 1919 (40 Stat., 1071), specific exception was made of educational, charitable, religious, and scientific institutions in the provisions for taxation upon income, collateral inheritances or bequests. The Stevens Institute of Technology has been applying to Congress for refund of the tax collected on its bequest ever since 1876. No less than 12 bills have been introduced in succeeding Congresses providing for refund on this tax. There was never an adverse report on this claim by any committee by either House of Congress. In connection with House bill 10491, in the Fifty-ninth Congress, providing for refund of the Stevens Institute tax, acting Secretary of the Treasury Hilles, in response to an inquiry, replied that the Internal Revenue Bureau was not able to state what other institutions had paid such tax under the act of 1862, as they had no separate list of such taxes. In reporting on Senate bill 2086, in the Fifty-ninth Congress, providing for refund of the Stevens Institute tax, Hon. Leslie M. Shaw, Secretary of the Treasury, stated: I think the bill could safely be passed if amended by striking out the provision of the payment of interest. I would prefer a general law authorizing the Secretary of the Treasury to refund all amounts collected as collateral inheritance tax from endowments left by will to any educational or eleemosynary institutions. In the report of the House Ways and Means Committee on the bill enacted June 27, 1902, above noted (H. Rept. 1702, 57th Cong., 1st sess.), the following language is used: It is hardly to be supposed that Congress intended to levy such an enormous tax upon the charitable and educational and other institutions of the country, discriminating against them by imposing a much heavier tax than where the legacy was left to the next of kin. It is inconceivable that it was ever intended by Congress to levy this enormous tax upon legacies for such uses, in effect, to put a hand in the contribution boxes of the country. The vindication of our national character calls for a refunding of the money thus taken. It seems clear from the foregoing that it was only by oversight that Congress in the act of 1862 failed to exempt bequests of this character, and the uniform policy of Congress, as evidenced by innumerable acts, is not to tax funds devoted to educational or charitable uses. It appears that every dollar of tax collected on bequests of this character have been repaid except such as were collected under the act of 1862, and so far as possible to ascertain it appears that the amounts collected on such bequests under that act were very limited. It does not appear that any claim of this character is now pending except the claim of the Stevens Institute of Technology and so far as ascertained, this is the only case where the tax collected on such a bequest under the act of 1862 amounted to any considerable sum of money. Simple justice seems to demand the refund of such taxes collected under that act, thus making the entire history of tax legislation uniform in this particular. Attached hereto is a letter from the Secretary of the Treasury, which is made a part of this report: TREASURY Department, OFFICE OF THE SECRETARY, Hon. GEORGE W. EDMONDS, House of Representatives, Washington, D. C. MY DEAR MR. EDMONDS. I have the honor to return herewith House bill 11656, which relates to the payment in 1870 of $45,750 as collateral inheritance tax upon the bequest which provides for the establishment and endowment of the Stevens Institute of Technology, of Hoboken, N. J. You forwarded this with your letter of March 2, and requested me to furnish you with my opinion as to its merits, together with all papers or copies of same bearing on the question. The proposed bill authorizes and directs me to pay to the trustees of the Stevens Institute of Technology, out of any money in the Treasury not otherwise appropriated, S R-66-3-vol 1—16 the sum of $45,750, being the sum paid to the United States January 28, 1870, by the trustees of Stevens Institute as a collateral inheritance tax upon the bequest that provided for the establishment and endowment of said institute. This bequest was contained in the will of Edwin A. Stevens. The estate of said Stevens was assessed on the December list, in 1869, a tax of $45,750 on a bequest made by him to the said institute. The assessment and collection of this money were made under the legacy tax act of Congress approved July 1, 1862, as amended by the acts of June 30, 1864, and July 13, 1866. No claim was ever filed in this department for the refunding of this tax, and none could have been, for after a careful search I am unable to find that any act was ever passed by the Congress authorizing the refunding of this class of taxes collected under the act of July 1, 1862, and its amendments. Under the act of June 13, 1898, commonly called the "Spanish War tax act," taxes upon the passing of estates were levied similar in many respects to the law of 1862. On June 27, 1902, the Congress, by an enactment, authorized the Secretary of the Treasury to pay back to institutions organized for religious, literary, charitable, or educational purposes such sums of money as had been paid by them as taxes under the provisions of the act of June 13, 1898, upon legacies received. The Civil War legacy tax act was repealed by the act of July 14, 1870, to take effect October 1 of that year, but the repealing act contained no provision for the repayment of any tax collected on bequests passing to religious, literary, charitable, or educational institutions. Undoubtedly legacy taxes were collected upon many bequests passing to religious, charitable, and educational institutions under the provisions of the acts of 1862, 1864, and 1866. Up to the present time Congress has not seen fit to pass any general law providing for the refund of these taxes. This department knows no reason why the Stevens Institute should be relieved under the special legislation from the provisions of the above-mentioned acts. If this institution is entitled to this relief, why not, then, all other institutions of similar character which have paid taxes on similar legacies? If the bill should become law, it would be a precedent that could be very properly followed by any and all other institutions similarly situated with regard to the pay. ment of legacy taxes under the Civil War acts. Sincerely, yours, NONNAVIGABILITY OF BAYOU COCODRIE, LA. FEBRUARY 14, 1921.-Ordered to be printed. Mr. RANSDELL, from the Committee on Commerce, submitted the following REPORT. [To accompany S. 4582.] The Committee on Commerce, to whom was referred the bill (S. 4582) to declare Bayou Cocodrie nonnavigable from its source to its junction with Bayou Chicot, having considered the same, report favorably thereon with the recommendation that the bill do pass without amendment. The bill has the approval of the War Department, as will appea by the annexed communication. WAR DEPARTMENT, Washington, February 9, 1921. Subject: Report on S. 4582, Sixty-sixth Congress, third session, to declare Bayou Cocodrie nonnavigable from its source to its junction with Bayou Chicot. Respectfully returned to the chairman Committee on Commerce, United States Senate. Before reporting on the accompanying bill, S. 4582, present session, to declare Bayou Cocodrie nonnavigable from its source to its junction with Bayou Chicot, it was considered advisable to hold a public hearing and make a special investigation to determine the effect of the proposed enactment on the interests of navigation. Bayou Cocodrie has a total length of about 72 miles. It rises in the central region of Louisiana, flows easterly through the shallow body of water known as Lake Cocodrie, and thence southeasterly to a point about 42 miles below the lake, where the Cocodrie and Bayou Boeuf unite to form Bayou Courtableau. Bayou Chicot, mentioned in the bill, enters the Cocodrie at a point about 20 miles above the junction with Bayou Courtableau. The latter has been under improvement by the United States and formerly large river boats plied regularly upon it in traffic between a point a short distance below the mouth of the Cocodrie and New Orleans. The Cocodrie has not been improved by the United States, but three examinations with a view thereto have been made by direction of Congress. The reports thereon were printed, as follows: Examination of 1890, House Executive Document No. 114, Fifty-first Congress, first .session. Examination of 1909, House Document No. 345, Sixty-first Congress, second session. Examination of 1915, House Document No. 1032, Sixty-fifth Congress, second session. The recommendation was unfavorable in all three cases. The report of 1890 states as follows: |