State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 38

1014

14ru CONGRESS.

[CHAPTER 828.]
August 30,1935.
[H. R. 8512.1
(Public, No. 400.1

Sioux County, N.
Dak.
Cooperation with
Fort Yates District, for
school building construction.
Vol. 48, p.o200.

Available for Indian
children.

SESS. I. CHS. 828, 829.

AUGUST 80, 1985.

AN ACT

To provide funds for cooperation with Fort Yates School District, Sioux County,
North Dakota, for extension of public-sohool buildings to be available for
Indian children.
Be it enacted by the Senate and Houe of Representatives of the
United States of America in Congrees assembled, That there is

hereby authorized to be expended from any moneys now available
and applicable, or that may become applicable hereafter available,
for construction under provisions of the National Industrial Recovery Act, approved June 16, 1938, the sum of $97,000 for the purpose
of cooperating with Fort Yates School District, Sioux County,
North Dakota, for extension and improvements of school buildings:
Provided, That the expenditure of any moneys so appropriated shall
be subject to the condition that the schools maintained b said
district shall be available to all the Indian children of the district
on the same terms, except as to payment of tuitions, as other children
of said school district, subject to such further conditions as may be
prescribed by the Secretary of the Interior.
Approved, August 30, 1935.
[CHAPTER 829.]

(H
R

.4.

[Public, No. 407.]
Revenue Act of

AN ACT
To provide revenue, equalize taxation, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
92. United States of America in Congress a8embled, That this Act may

be cited as the "Revenue Act of 1935 ".

Title I-Income and
Excess-profits Taxes.
Surtaxes on Individuals.
%ol. 48, P.4.
Poo, P. I 3

nates.

TITLE I-INCOME AND EXCESS-PROFITS TAXES
SEC. 101. SURTAXES ON INDIVIDUALS

Section 12(b) of the Revenue Act of 1934 is amended by striking

out all after the bracket"9$6,080upon surtax net incomes of $44,000; and upon surtax net

incomes in excess of $44,000 and not in excess of $50,000, 27 per
centum in addition of such excess."

and inserting in lieu thereof the following:
"$7,700 upon surtax net incomes of $50,000; and upon surtax net
incomes in excess of $50,000 and not in excess of $56,000, 81 per
centum in addition of such excess.
" $9,560 upon surtax net incomes of $50,000; and upon surtax net
incomes in excess of $56,000 and not in excess of $62,000, 35 per
centum in addition of such excess.
"$11,660 upon surtax net incomes of $62,000; and upon surtax net
incomes in excess of $62,000 and not in excess of $68,000, 89 per
centum in addition of such excess.
"$14,000 upon surtax net incomes of $68,000; and upon surtax
net incomes in excess of $68 000 and not in excess of $74,000, 48
per centum in addition of suci excess.
"$16,580 upon surtax net incomes of $74,000; and upon surtax net
incomes in excess of $74,000 and not in excess of $80,000, 41 per
centum in addition of such excess.
"$19,400 upon surtax net incomes of $80,000; and upon surtax net
incomes in excess of $80,000 and not in excess of $90,000, 61 per
centum in addition of such excess.
"$24,500 upon surtax net incomes of $90,000; and upon surtax net
incomes in excess of $90,000 and not in excess of $100,000, 55 per

centun in addition of such excess.

74TrH CONGRESS.

1015

SESS. I. CH. 829. AUGUST 80, 1935.

" $30,000 upon surtax net incomes of $100,000; and upon surtax

net incomes in excess of $100,000 and not in excess of
per centum in addition of such excess.
" $59,000 upon surtax net incomes of $150,000; and
net incomes in excess of $150,000 and not in excess of
per centum in addition of such excess.
" $89,000 upon surtax net incomes of $200,000; and
net incomes in excess of $200,000 and not in excess of

per centum in addition of such excess.

$150,000, 58

upon surtax
$200,000, 60
upon surtax
$250,000, 62

" 120,000 upon surtax net incomes of $250,000; and upon surtax
net incomes in excess of $250,000 and not in excess of $800,000, 64 per
centum in addition of such excess.
" $152,000 upon surtax net incomes of $300,000; and upon surtax
net incomes in excess of $300,000 and not in excess of $400,000, 66
per centum in addition of such excess.
" $218,000 upon surtax net incomes of $400,000; and upon surtax
net incomes in excess of $400,000 and not in excess of $500,000, 68
per centum 1i addition of such excess.
" $286,000 upon surtax net incomes of $500,000; and upon surtax
net incomes in excess of $500,000 and not in excess of $750,000, 70
per centum in addition of such excess.
"$461,000 upon surtax net incomes of $750,000; and upon surtax
net incomes in excess of $750,000 and not in excess of $1,000,000, 72
per centum in addition of such excess.
" $641,000 upon surtax net incomes of $1,000,000; and upon surtax
net incomes in excess of $1,000,000 and not in excess of $2,000,000,
18 per centum in addition of such excess.
" $1,871,000 upon surtax net incomes of $2,000,000; and upon
surtax net incomes in excess of $2,000,000 and not in excess of
$5,000,000, 74 per centum in addition of such excess.
" $3,591,000 upon surtax net incomes of $5,000,000; and upon
surtax net incomes in excess of $5,000,000, 15 per centum in addition
of such excess."
SEC. 102. INCOME TAXES ON CORPORATIONS
(a) Section 13 (a) of the Revenue Act of 1934 is amended to read
as follows:
" (a) RAr or TAx.-There shall be levied, collected, and paid for
each taxable year upon the net income (in excess of the credit
against net income provided in section 26) of every corporation,
a tax as follows:
"Upon net incomes not in excess of $2,000, 121/2 per contum.
"$250 upon net incomes of $2,000; and upon net incomes in excess
of $2,000 and not in excess of $15,000, 13 per centum in addition of
.
such excess.
" $1,940 upon net incomes of $15,000; and upon net incomes in
excess of $15,000 and not in excess of $40,000, 14 per centum in
addition of such excess.
"$5,440 upon net incomes of $40,000; and upon net incomes in
excess of $40,000 16 per centum in addition of such excess."
(b) Section 1(c) of the Revenue Act of 1934 is amended by
striking out1"except that there shall be added to the rate of tax prescribed by section 18(a) a rate of 2 per centum, but the tax at such
increased rate shall be considered as imposed by section 18(a)" and
by inserting in lieu thereof the following: "except that the rate of
tax shall be 153/4 per centum, in lieu of the rates prescribed by seetion 18(a), but the tax at such rate of 1634 per centum shall be
considered as imposed by section 18(a)".

Inome tax on corporalfons.
Vol. 48, p. 88.
Rate of tax.

Vol A P.721.a
pomuyet o
ab
paymenterf tr.

-

1016
Vol.,48,. 91.

74Ta CONGRESS.
from

*(e)

SESS. I. CH. 829.

AUGUST 80, 1985.

Section 23 of the Revenue Act of 1934 (relating to deduc-

tions from gross income) is amended by adding at the end thereof
a new subsection as follows:
Charitable and Other
I(r) CHARITABLE AND OTHER CONTRIBUTIONS BY CORPORATIONS.contributions bly Cor In the case of a corporation, contributions or gifts made
within the
poratlons.
corporation, or domestic
taxable year to or for the use of a domestic
trust, or domestic community chest, fund, or foundation, organized
and operated exclusively for religious, charitable scientific, literary,
or educational purposes or the prevention of cruelty to children (but
in the case of contributions or gifts to a trust, chest, fund, or foundation, only if such contributions or gifts are to be used within the
United States exclusively for such purposes), no part of the net
earnings of which inures to the benefit of any private shareholder
or individual, and no substantial part of the activities of which
is carrying on propaganda, or otherwise attempting, to influence
legislation; to an amount which does not exceed 5 per centum of
the taxpayer's net income as computed without the benefit of this
subsection. Such contributions or gifts shall be allowable as deductions only if verified under rules and relations prescribed by the
Commissioner, with the approval of the secretary.
Vol 48,,T,33.
from . (d) Section 204(c) of the Revenue Act of 1984 (relating to deducgross income by inur- tions from gross income by insurance companies other than life or
ance companies
mutual) is amended by adding at the end thereof a new paragraph
than lifeor mutt
as follows:
"(10) Charitable, and so forth, contributions, as provided in
section 28(r)."
Vol. 48, p. 7a.
(e) Section 282 of the Revenue Act of 1984 (relating to deductions
Deductins alnowed
reign corporattion.
allowed foreign corporations) is amended by inserting "(a) IN
GENERAL.-" before the beginning of the section and by inserting
at the end thereof the following new subsection:
"(b) CHARITABLE, AND 80 FORTH, CONTRIBTIoN.-The so-called
charitable contribution' deduction allowed by section 28(r) shall
be allowed whether or not connected with income from sources within
the United States."
Vol. 43, P. 724. rp1 of (f) Section 144 of the Revenue Act of 1934 (relating to payment
Payment of01
tion Income t
of corporation income tax at source) is amended by inserting after
Source.
the words " a tax equal to 1834 per centum " the following: "thereof
with respect to all payments of income made before January 1, 1986
Amount.
and equal to 15 per centum thereof with respect to all payments o
income made after December 81, 1935 ".
Vol. 48, p. 723.
fater* (g) Section 148 (a) (1) of the Revenue Act of 1984 relatingn to
Withholding 0o
est on tax-tree cove- withholding of interest on tax-free covenant bonds) is amendedby
nant bonds.
striking out clause (B) thereof and inserting in lieu thereof the
following:
Foreign corpor nations. "(B) in the case of such a foreign corporation 1834 per centum
with respect to all payments of interest made before January 1,
1986, and 15 per centum with respect to all payments of interest
made after December 81, 1985, and ".
Vol. 48,typ.690.
Dedutons from
(h) Section 23(p) of the Revenue Act of 1934 (relating to the
gross Income.
deduction of dividends received by corporations) is amended by
Dividends rec
striking out the words "the amount " and inserting in lieu thereof
by cportions.
the following: "90 per centum of the amount ".
Vol. 48, p. 724.
o. (i) Section 144 of the Revenue Act of 1934 is amended by striking
Payment of C
tion Income t x at out the period at the end thereof and inserting a colon and the folsource.
lowing: "Provided further That in the case of the payment, after
December 81, 1985, of dividends of the class with respect to which
Vol .4, p. 80.
a deduction is allowed by section 28(p), the deduction and withholding provided for inthis section shall also apply to 10 per centutm
Dede kns
gross income.

El

14mrx CONGRESS.

1017

SESS. I. CH. 829. AUGUST 30, 1935.

of the amount of the payment: Provided further That the Commissioner, under rules and regulations prescribed b him with the
approval of the Secretary ma authorize withhold g under this
section and section 148 (a) 1)
), in cases where the taxpayer has
a taxable year ending on any other date than December 81, at the
rate of 183/4 per centum (and, in the case of payments of dividends
with respect to which withholding is required, may authorize such
payments to be made without withholding) until the beginning of
the taxpayer's first taxable year which begins after December 81,
1935."
SEC. 103. INCOME TAX ON LIFE INSURANCE COMPANIES

Sections 201(b) (1) and (2) of the Revenue Act of 1934 are
amended by striking out "184 per centum of " and inserting in
lieu thereof "a tax at the rates specified in section 18 upon ".

Vol. 48, p. 3

Income tax onutIn.
surance companies.

Vol. AP.n73.

Rates or aw.

SEC. 104. INCOME TAX ON INSURANCE COMPANIES OTHER THAN LIFE Income tax on insur.
dance companies othe
OR MUTUAL
than life or mutual.
Sections 204(a) (1) and (2) of the Revenue Act of 1934 are Vol.48, co.man3.
amended by striking out "1834 per centum of " and inserting in lieu doma toompanies.
thereof "a tax at the rates specilled in section 18 upon ".
SEC. 105. CAPITAL STOCK TAX

(a) For each year ending June 80, beginning with the year ending
June 80, 1986, there is hereby imposed upon every domestic corporation with respect to carrying on or doing business for any part of
such year an excise tax of $1.40 for each $1,000 of the adjusted

declared value of its capital stock.
(b) For each year ending June 80, beginning with the year ending

June 80, 1936, there is hereby imposed upon every foreign corporation with respect to carrying on or doing business in the United

States for any part of such year an excise tax equivalent to $1.40 for
each $1,000 of t adjusted declared value of capital employed in the
transaction of its business in the United States.
The taxes imposed by this section shall not apply-.
(6)
1) to any corporation enumerated in section 101 of the Revenue
A of 1934, as amended;

(2) toany insurance company subject to the tax imposed by
section 201, 204, or 207 of such Act, as amended.
(d) Every corporation liable for tax under this section shall make
a return under oath within one month after the close of the year
with respect to which such tax is imposed to the collector for the
district in which is located its principal place of business or, if it has
no principal place of business in the United States, then to the
collector at Baltimore, Maryland. Such. return shall contain such
information and be made in such manner as the Commissioner with
the approval of the Secretary may by regulations prescribe. The tax
shall, without assessment by the Commissioner or notice from the
Oollector, be due and payable to the collector before the expiration

of the period for filing the return. If the tax is not paid when due,
there shall be added as part of the tax interest at the rate of 6 per

centum per annum from the time when the tax became due until paid.
All provisions of law (including penalties) applicable in respect of

the taxes imposed by section 600 of the Revenue Act of 1926 shall,
insofar as not inconsistent with this section be applicable in respect
of the taxes imposed by this section. The commissioner may extend.
the time for making the returns and paying the taxes imposed by
this section, under such rules and regulations as he may prescribe

Capital stock tax
ImpositIon of excuse
tax; domestic corporations
,
Vol 48, p. 760.
Posto P. 173.

Foreign corporations.

Exemptions.
Vol. 48, p.700,
Vol. 48, p. 731.
Returns.

Contents.

payment of tax.

Tax Interest.

Povsions of law
applicable,.
Vol. 44, p 936 U. 8.
c.,pp.1133,118I.
Extension of time tor
making return.

I

1018

14=ra CONGRESS.

SESS. I. CH. 829. AUGUST 80, 1935.

with the approval of the Secretary, but no such extension shall be
for more than sixty days.
Publity of returns.
(e) Returns required to be filed for the purpose of the tax imposed
l.
Vo.4op
by this section shall be open to inspection in the same manner, to
the same extent, and subject to the same provisions of law, including
penalties, as returns made under Title II of the Revenue Act of 1926.
Determination of ad.
(f) For the first year ending June 80 in respect of which a tax is
justed declared value;
,p osed by this section upon any corporation, the adjusted declared
ftrst year ending June
30.
value shall be the value, as declared b the corporation in its first
Pol, p.n733.
return under this section (which declaration of value cannot be
amended), as of the close of its last income-tax taxable year ending
at or prior to the close of the year for which the tax is imposed by this
section (or as of the date of organization in the case of a corporation
having no income-tax taxable year ending at or prior to the close of
Subsequent years; the year for which the tax is imposed by this section). For any subsedomestic corporations.
quent year ending June 30, the adjusted declared value in the case
of a domestic corporation shall be the original declared value plus
(1) the cash and fair market value of property paid in for stock or
shares, (2) paid in surplus and contributions to capital, (8) its
net income, 4) the excess of its income wholly exempt fom the taxes
Vol. 48, pp. 683, 601. imposed by Title I of the Revenue Act of 1934, as amended, over the
amount disallowed as a deduction by section 24(a) (5) of such title,
and (5) the amount of the dividend deduction allowable for income
tax purposes, and minus (A) the value of property distributed in
liquidation to shareholders, (B) distributions of earnings or profits,
and (C) the excess of the deductions allowable for income tax purposes over its gross income; adjustment being made for each inicometax taxable year included in the period from the date as of which the
original declared value was declared to the close of its last incometax taxable year ending at or prior to the close of the year for
which the tax is imposed by this section. The amount of such adjustment for each such year shall be computed (on the basis of a
separate return) according to the income tax law applicable to such
Foreigncorporations. year. For any subsequent year ending June 80, the adjusted declared value in the case of a foreign corporation shall be the original
declared value adjusted (for the same income-tax taxable years as
in the case of a domestic corporation) ,in accordance with regulations
prescribed by the Commissioner with the approval of the Secretary,
to reflect increases or decreases in the capital employed in the transaction of its business in the United States.
Credit allowed In
(g) For the purpose of the tax imposed by this section there shall
case of China Trade
Actcorporation.
be allowed in the case of a corporation organized under the China
0.V l.4p. 849; U.S. Trade Act, 1922, as a credit against the adjisted declared value of
its capital stock, an amount equal to the proportion of such adjusted
declared value which the par value of the shares of stock of the
corporation, owned on the last day of the taxable year by (1) persons resident in China, the United States, or possessions of the
United States, and (2) individual citizens of the United States or
China wherever resident, bears to the par value of the whole number
construed. of shares of stock of the corporation outstanding on such date. For
"China"*
the purposes of this subsection shares of stock of a corporation
shall be considered to be owned by the person in whom the equitable
right to the income from such shares is in good faith vested; and as
used in this subsection the term "China" shall have the same
meaning as when used in the China Trade Act, 1922.
'Vol, 486p. 760a
(h) The capital stock tax imposed by section 701 of the Revenue
Act of 1934 shall not apply to any taxpayer with respect to any year
after the year ending June 80, 1935.

r-r--'-"'

-~

4Tm CONGRESS.

SESS. I. CH. 829.

LI

--

1019

AUGUST 80, 1935.

Exoeess-profits tax.

SEC. 106. EXCESS-PROFITS TAX

(a) There is hereby imposed upon the net income of every corpora- Imoeleton
tion for each income-tax taxable year ending after the close of the o

first year in respect of which it is taxable under section 105, an
excess-profits tax equal to the sum of the following:
6 per centum of such portion of its net income for such income-tax computation.
taxable year as is in excess of 10 per centum and not in excess of 15
per centum of the adjusted declared value;
12 per centum of such portion of its net income for such incometax taxable year as is in excess of 15 per centum of the adjusted
declared value.
(b) The adjusted declared value shall be determined as prove aided eiecared
in section 105 as of the close of the preceding income-tax taxable
year (or as of the date of organization if it had no preceding income-

P.IMs.

II,

tax taxable year). If the income-tax taxable year in respect of
which the tax under this section is imposed is a period of less than
12 months, such adjusted declared value shall be reduced to an
amount which bears the same ratio thereto as the number of months
in the period bears to 12 months. For the purposes of this section
the net income shall be the same as the net income for income tax
purposes for the year in respect of which the tax under this section
is imposed, except that there shall be deducted the amount of income
tax imposed for such year by section 18 of the Revenue Aut of 1934,
as amended.

oared.

vol.48,p.8.

revisions of law ap.

(c) All rovisions of law (including penalties) applicable in
respect of the taxes imposed by Title I of the Revenue Act of 1934,

.48p.uw.
88

as amended, shall, insofar as not inconsistent with this section, be
applicable in respect of the tax imposed by this section, except that
the provisions of section 181 of that title shall not be applicable.
(d) The excess-profits tax imposed by section 702 of the Revenue Vol.4s, .77
Act of 1934 shall not apply to any taxpayer with respect to any
income-tax taxable year ending after June 80, 1936.
SEC. 107. TAXABLE YEARS TO WHICH APPLICABLE

The amendments made by sections 101, 102 (except subsections
(f), (g) and (i) thereof ), 103, and 104 shall apply only in the case
of taxable years beginning after December 81, 1935.
SEC. 108. CREDIT ALLOWED CHINA TRADE ACT CORPORATIONS

Taxable yarsto
which applicable.

Antes P.1014.

Creditalowed China

Trade

Act

corpora.

(a) Section 261 (a) of the Revenue Act of 1934 is amended to "" .,

read as follows:
"(a) ALLOWANCE OF OREDFr.-For the purpose only of the taxes Allowance
imposed by section 13 of this Act and section 106 of the Revenue w.I
.Act of 1935 there shall be allowed, in the case of a corporation O p. .
organized under the China Trade Act, 1992, in addition to the credit
provided in section 26, a credit against the net income of an amount
equal to the proportion of the net income derived from sources
within China (determined in a similar manner to that provided in
section 119) which the par value of the shares of stock of the corporation owned on the last day of the taxable year by (1) persons
resident in China, the United States, or possessions of the TJnited
States, and (2) individual citizens of the United States or China
wherever resident bears to the par value of the whole number of

shares of stock ol the corporation outstanding on such date: Pro-

vided, That in no case shall the diminution, by reason of such credit,
of the tax imposed by such section 18 (computed without regard to this section) exceed the amount of the special diIdend certified

frfti

.
of credit.
; U. S.

00

1M~a~a~.44

1020

4Tt

Taxable yean to
which applicable.
Vol 48, p. 68; Ante,
p. 10.

Personal holding
companies.
Vol. 4 p.751.

Imposition of tax.

nate

Vol. 48, p. 762.

Taxableear
which applicae
Corporate

tons.

to

liquid.

Vol. 48,p.s0.

Exchange In liquid.
tion.

tConple liqud.

CONGRESS.

SESS. I. oCH. 829.

AUGUST 80, 1935.

under subsection (b) of this section; and in no case shall the diminution, by reason of such credit, of the tax imposed by such section 106
(computed without regard to this section) exceed the amount by
which such special dividend exceeds the diminution permitted by this
section in the tax imposed by such section 18."
(b) The amendment made by subsection (a) shall apply with
respect to the tax imposed by section 13 of the Revenue Act ol 1934,
as amended, only in the case of taxable years beginning after December 81, 1985.
SEC. 109. PERSONAL HOLDING COMPANIES

(a) Section 351 (a) of the Revenue Act of 1934 is amended to read
as follows:
"(a) ImpoarrxoN or TAx.-There shall be levied, collected, and
paid, for each taxable year, upon the undistributed adjusted net income of every personal holding company a surtax equal to the sum
of the following:
"(1) 20 per centum of the amount thereof not in excess of $2,000;
plus
"(2) 80 per centum of the amount thereof in excess of $2,000 and
not in excess of $100,000* plus
"(3) 40 per centum other amount thereof in excess of $100.000
and not in excess of $500,000; plus
"(4) 50 per centum of the amount thereof in excess of $500,000
and not in excess of $1,000,000; plus
"(5) 60 per centum of the amount thereof in excess of $1,000,000."
(b) Section 851 (b) (2) (0) of such Act is amended by striking out
the period at the end thereof and inserting in lieu thereof a comma
and the following: "and distributions not in complete or partial
liquidation and not a 'dividend ' as defined in section 115) made
during the taxable year out of earnings or profits of such year."
(e)The amendments made by this section shall apply only in the
case of taxable years beginning after December 31, 1935.
SEC. 110. CORPORATE LIQUIDATIONS
(a) Section 112(b) of the Revenue Act of 1934 is amended by

adding after paragraph (5) a new paragraph reading as follows:
"(6) EXCHANGE, IN LIQumATnoN.-No gain or loss shall be recognized upon the receipt by a corporation of property (other than
money) distributed in complete liquidation of another corporation,
if the corporation receiving such property on such exchange was
on the date of the enactment of the Revenue Act of 1985 and has
continued to be at all times until the exchange, in control of such
Other corporation. As used in this paragraph complete liquidation'
includes any one of a series of distributions by a corporation in complete cancellation or redemption of all its stock in accordance with a
plan of liquidation under which the transfer of the property under
the liquidation is to be completed within a time specified in the plan,
not exceedingfive years from the close of the taxable year during
which is made the first of the series of distributions uner the plan.
If such transfer of property is not completed within the taxable
year the Commissioner may require of the taxpayer, as a condition
to the non-recognition of gain under this paragraph, such bond, or
waiver of the statute of limitations on assessment and collection, or
both, as he may deem necessary to insure the assessment and collection of the tax if the transfer of the property is not completed in
accordance with the plan. This paragraph shall not apply to any
liquidation if any distribution in pursuance thereof has ben made
before the date of the enactment of the Revenue Act of 1935."

'4rir CONGRESS.

1021

SESS. I. CH. 829. AUGUST 80, 1935.

(b) Section 112(c) (1) of the Revenue Act of 1934 is amended by
striking out1" or (5)'and inserting in lieu thereof "(5), or (6)".
(c) Section 112(e) of the Revenue Act of 1934 s amended by
striking out " subsection b)(1) to (5) and inserting in lieu thereof
5
to
" subsection (b)1).t (1) (
(d) Section 112(i) of the Revenue Act of 1934 is amended by
striking out1"(4),or (5)" and inserting in lieu thereof "(4), (5),or
,$ by striking out "(8) or (5)' and inserting in lieu thereof
and
) (), or (6) ".
(e$ The amendments made by this section shall apply only in the
case of taxable years beginning after December 31, 1935.
TITLE II-AMENDMENTS TO ESTATE TAX
SEC. 201. ESTATE TAX RATES

(a) Section 401 (b) of the Revenue Act of 1932, as amended, is
0
amended to read as follows:
"(b) The tentative tax referred to in subsection (a) (1) of this
section shall equal the sum of the following percentages of the value
of the net estate:
"Upon net estates not in excess of $10,000, 2 per centum.
"$200 upon net estates of $10 000; and upon net estates in excess
of $10,000 and not in excess of 20,000, 4 per centum in addition of
such excess.
" $600 upon net estates of $20,000; and upon net estates in excess
of $20,000 and not in excess of $30,000, 6 per centum in addition of
such excess.
" $1,200 upon net estates of $30,000; and upon net estates in excess
of $30,000 and not in excess of $40,000, 8 per centum in addition of
such excess.
" $2,000 upon not estates of $40,000; and upon net estates in excess
of $40,000 and not in excess of $50,000, 10 per centum in addition of
such excess.
" $3,000 upon net estates of $50,000; and upon net estates in excess
of $50,000 and not in excess of $70,000, 12 per centum in addition of
such excess.
"$6 400 upon net estates of $70,000; and upon net estates in excess
of $70,000 and not in excess of $100,000, 14 per centum in addition
of such excess.
" $9,600 upon net estates of $100,000; and upon net estates in excess
of $100,000 and not in excess of $200,000, 17 per centum in addition
of such excess.
" $26,600 upon net estates of $200,000; and upon net estates in excess
of $200,000 and not in excess of $400,000, 20 per centum in addition
of such excess.
" $66,600 upon net estates of $400,000; and upon net estates in
excess of $400,000 and not in excess of $600,000, 23 per centum in
addition of such excess.
" $112,600 upon net estates of $600,000; and upon net estates in
excess of $600,000 and not in excess of $800,000, 26 per centum in
addition of such excess.
" $164,600 upon net estates of $800,000; and upon net estates in
excess of $800,000 and not in excess of $1,000,000, 29 per centum in
addition of such excess.
"$222 600 upon net estates of $1,000,000; and upon net estates in
excess oi $1,000,000 and not in excess of $1,500,000, 82 per centum in
addition of such excess.
" $382 600 upon net estates of $1,500 000; and upon net estates in
excess o# $1,500 000 and not in excess of $2,000,000,8 per centum in
iddifio of sucZ excess.

Vol. 48, p. 704.
Vol. 48,.

o.705,

Vol. 48, pp. 706, 708.

Taxable years to
which appliable.
Title
Il-Amend.
meaLs to eSattax.
Estate tax rates.
Vol 47p. 243#vol
481.74

V.9.0.

1022

14T

Estate
Conunnued. tax

rates-

Vol ?, p.24.
Vol. 47, p. 245.

Appieatonofamendmonts.

Estate

tion.

CONGRESS.

SESS. I. CH. 829. AUGUST 80, 1985.

"1$557600 upon net estates of $2,000,000; and upon net estates in

excess of $2,000,000 and not in excess of $2,500,000, 88 per centum
in addition of such excess.
"$747,600 upon net estates of $2,500,000; and upon net estates in
excess of $2,500,000 and not in excess of $3,000,000, 41 per centum in
addition of such excess.
"$952,600 upon net estates of $3,000,000* and upon net estates in
excess of $3,000,000 and not in excess of J8,500,000, 44 per centun
in addition of such excess.
" $1,172,600 upon net estates of $3,500,000; and upon net estates
in excess of $3,500,000 and not in excess of $4,000,000, 47 per centum
in addition of such excess.
"$1,407,600 upon net estates of $4,000,000; and upon net estates in
excess of $4,000,000 and not in excess of $4,500,000, 50 per centuni
in addition of such excess.
"$1,657,600 upon net estates of $4,500,000; and upon net estates
in excess of $4,500,000 and not in excess of $5,000,000, 58 per centum
in addition of such excess.
44$1,922,600 u pon net estates of $5,000,000; and upon not estates in
excess of $5,000,000 and not in excess of $6,000,000, 56 per centum
in addition of such excess.
"$2,482,600 upon net estates of $6,000,000; and upon net estates
in excess of $6,000,000 and not in excess of $7,000,000, 59 per centun
in addition of such excess.
"$3,072,600 upon net estates of $7,000,000; and upon net estates
in excess of $7,000,000 and not in excess of $8,000,000, 61 per centum
in addition of such excess.
"$3,682,600 upon net estates of $8,000,000; and upon net estates
in excess of $8,000,000 and not in excess of $9,000,000, 63 per centum
in addition of such excess.
"$4,812,600 upon not estates of $9,000,000; and upon net estates
in excess of $9,000,000 and not in excess of $10,000,000, 65 per centum
in addition of such excess.
"$4,962 600 upon net estates of $10,000,000; and upon net estates in
excess of i10,000,000 and not in excess of $20,000,000, 67 per centum
in addition of such excess.
"$11,662 600 upon net estates of $20,000,000; and upon net estates
in excess oY?$20,000,000 and not in excess of $50,000,000, 69 per centum
in addition of such excess.
"$32,862,600 upon net estates of $50,000,000* and upon net estates
in excess of $50,000000, 10 per centum in addition of such excess."

(b) Section 401 ?c) of the Revenue Act of 1932 (relating to the

exemption for the purposes of the additional estate tax is amended
by striking out "$50,000 " and inserting in lieu thereof '$40,0001".
(o) Section 403 of the Revenue Act of 1932, as amended, gelatinn
to the requirement for filing return under such additional estate tax)
is amended by striking out "$50,000 " and inserting in lieu thereof
"$40000".
(dj The amendments made by this section shall
with respect to transfers of estates of decedents be effective only
dying after the
date of the enactment of this Act.

tax-valua* SEC. 202. ESTATE TAX-VALUATION

(a) Section 802 of the Revenue Act of 1926, as amended,

is
amended by adding a new subdivision as follows:
Duterminatono
o
uj)
If the executor so elects upon his return (if filed within the
Vol. 44, p. 72; U. 8*

0.0 P.1071.

time prescribed by law o*r prescribed by the Commissioner in pursuance of law), the value of the gross estate shall be determined
by valuing all the property included therein on the date' of the

74TH

CONGRESS.

SESS. I. CH. 829. AUGUST 80, 1985.

1023

decedent's death as of the date one year after the decedent's death,
except that (1) property included in the gross estate on the date
of death and, within one year after the decedent's death, distributed
by the executor (or, in the case of property included in the gross
estate under subdivision (c), (d), or (f) of this section, distributed
by the trustee under the instrument of transfer), or sold, exchanged,
or otherwise disposed of, shall be included at its value as of the
time of such distribution, sale, exchange, or other disposition, whichever first occurs, instead of its value as of the date one year after
the decedent's death, and (2) any interest or estate which is affected
by mere lapse of tinie shall be included at its value as of the time
of death (instead of the later date) with adjustment for any difference in its value as of the later date not due to mere lapse of time.
No deduction under this title of any item shall be allowed if allowance for such item is in effect given by the valuation under this sub-

Ivo
' say m

division. Wherever in any other subdivision or section of this title

or in Title II of the Revenue Act of 1932, reference is made to
the value of property at the time of the decedent's death, such
reference shall be deemed to refer to the value of such property
used in determining the value of the gross estate. In case of an
election made by the executor under this subdivision then for the
-purposesof the deduction under section 808 (a,) (3) or section
803 (b)(8),any b guest, legacy devise, or transfer enumerated
therein shall be v Iued as of te date of decedent's death with
adjustment for any difference in value (not due to mere lapse of
time or the occurrence or nonoccurrence of a contingency) of the
property as of the date one year after the decedent's death (substituting the date of sale or exchange in the case of property sold
or exchanged during such one-year period)."
(b) The amendment made by this section shall be effective only
with respect to transfers of estates of decedents dying after the date
of the enactment of this Act.
SEC. 203. ESTATE TAX-DUE DATE
(a) Section 305(a) of the Revenue Act of 1926 is amended to read

as follows:

"(a) The tax imposed by this title shall be due and payable fifteen

Applicationoframend.
ment.

Estate tax--due date.

.Vol44,.74;U.S..,
Time of payment.

months after the decedent's death, and shall be paid by the executor

to the collector."

(b) Section 805(c) of the Revenue Act of 1926 is amended to read

as follows:
"(c) If the time for the payment is thus extended there shall be
collected, as a part of such amount, interest thereon at the rate of
6 per centum per annum from the expiration of three months after
the due date of the tax to the expiration of the period of the extension."
(c) The amendments made by this section shall be effective only
with respect to transfers of estates of decedents dying after the date
of the enactment of this Act.
TITLEIII-AMENDMENTS

TO GIFT TAX

SEC. 301. GIFT TAX RATES
(a) The gift-tax schedule set forth in section 502 of the Revenue
Act of 1932, as amended, is amended to read as follows:
Upon net gifts not in excess of $10 000, 1iy2 per centum.
$150 upon net gifts of $10,000; and upon net gifts in excess of
$10,000 and not in excess of $20,000, 8 per centum in addition of such
exess

,Vol."#4.
74U.o8..9
Interest on extended
'eet

mpiconnofnamend

n
TI tIle

III-Amend.

ments to gift tax.

uGift-axschedule.
Vol.

El

1024
Gift-tax scheduleContinued.

74TH CONGRESS.

SESS. I.

CH. 829.

" $450 upon net gifts of $20,000; and
$20,000 and not in excess of $30,000, 4y
such excess.
" $900 upon net gifts of $30 000; and
$30 000 and not in excess of 40,000, 6

AUGUST 80, 1985.

upon net gifts in excess of
per centum in addition of
upon net gifts in excess of
per centum in addition of

sUch excess.

" $1,500 upon net gifts of $40 000; and upon net gifts in excess of
$40 000 and not in excess of $56,000, 7y per centum in addition of
suei excess.
" $2,250 upon net gifts of $50,000; and upon net gifts in excess of
$50 000 and not in excess of $70,000, 9 per centum in addition of
such excess.
" $4,050 upon net gifts of $70,000; and upon net gifts in excess
of $70,000 and not in excess of $100,000, 10 per centum in addition
of such excess.
" $7,200 upon not gifts of $100,000; and upon net gifts in excess of
$100,000 and not in excess of $200,000, 12% per centum in addition
of such excess.
"$19,950 upon net gifts of $200,000* and upon net gifts in excess of
$200,000 and not in excess of $400,00, 15 per centum in addition of
such excess.
" $49,950 upon net gifts of $400,000; and upon net gifts in excess
of $400,000 and not in excess of $600,000, 174 per centum in addition
of such excess.
" $84,450 upon net gifts of $600,000; and upon net gifts in excess of
$600,000 and not in excess of $800,000, 192 per centum in addition
of such excess.
" $123,450 upon net gifts of $800,000; and upon net gifts in excess
of $800,000 and not in excess of $1,000,000, 21% per centum in addition of such excess.
" $166 950 upon net gifts of $1,000,000; and upon net gifts in excess
of $1,W ,000 and not in excess of $1,500,000, 24 per centum in addition
of such excess.
" $280,950 upon net gifts of $1,500,000; and upon net gifts in excess
of $1,500,000 and not in excess of $2,000,000, 261/4 per centum in
addition of such excess.
" $418,200 upon net gifts of $2,000,000; and upon net gifts in excess
of $2,000,000 and not in excess of $2,500,000, 28 per centum in
addition of such excess.
" $560,700 upon net gifts of $2,500,000; and upon net gifts in excess
of $2 500,000 and not in excess of $3,000,000, 80% per centum in
addition of such excess.
"$714,450 upon net gifts of $3,000,000; and upon net gifts in excess
of $3,000,000 and not in excess of $3,500,000, 33 per centum in addition
of such excess.
"$879,450 upon net gifts of $3,500,000; and upon net gifts in excess
of $3500,000 and not in excess of $4,000,000, 35% per centum in
addition of such excess.
"$1,055700 upon net gifts of $4,000,000; and upon net gifts in
excess of 4,000,000 and not in excess of $4,500,000, 372 per centum
in addition of such excess.
"$1,243200 upon net gifts of $4,500,000; and upon net gifts in
excess of ,500,000 and not in excess of $5,000,000, 893/4 per centum
in addition of such excess.
" $1,441,950 upon net gifts of $5,000,000; and upon net gifts in
excess of $5,000,000 and not in excess of $6,000,000, 42 per centum
in addition of such excess.

y±.

~

U

I3 mvrpliq

Am

74r

1025

SES8. I. OH. 829. AUGUST 80, 1985.

CONGRESS.

'.
" $1,861 950 upon net gifts of $6,000,000; and upon net gifts in coif
centum
excess of J6,000,00 and not in excess of $7,000,000, 441/4 per
in addition of such excess.
" $2,804 450 upon net gifts of $7,000,000; and upon net gifts in
excess of 17,000,000 and not in excess of $8,000,000, 458/4 per centum
in addition of such excess.
"$2,761960 upon net gifts of $8,0000,00; and upon net gifts in
excess of 6,000,000 and not in excess of $9,000,000, 47% per centum
in addition of such excess.
" $8,24 450 upon net gifts of $9,000,000; and upon net gifts in
excess of 9,000,000 and not in excess of $10,000,000, 488/ per centum
in addition of such excess.
" $3,121 950 upon net gifts of $10,000,000; and upon net gifts in
excess of J10,000,000 and not in excess of $20,000,000, 50% per centum in addition of such excess.
"$8,746,950 upon net gifts of $20,000,000; and upon net gifts in
excess of $20,000,000 and not in excess of $50,000,000, 510/4 per centum in addition of such excess.
"$24,271,950 upon net gifts of $50,000,000' and upon net gifts in
excess of $50,000 000, 52Y/ per centum in addition of such excess."
(b) Section 5 (a) (i of the Revenue Act of 1932 relatgto vl.047, . 47
g
the specific exemption for gift-tax purposes) is amended ys
out "$50,000 " and inserting in lieu thereof "$4000".
(e) The amendments made by subsections (a$ and (b) of this nye1CautonOffmends
section shall be applied in computing the tax for the calendar year
1986 and each calendar year thereafter (but not the tax for the
calendar year 1935 or a previous calendar year), and such amendments shall be applied in all computations in respect of the calendar
year 1935 and previous calendar years for the purpose of computing
the tax for the calendar year 1936 or any calendar year thereafter.

TITLE IV.-MISCELLANEOUS PROVISIONSTilro
SEC. 401. AMENDMENTS TO TITLE IV OF REVENUE ACT OF 1932

oeens.

Revenue Act of 1932,

(a) Section 620 (8) of the Revenue Act of 1932, as amended, is Vol.47,p.27;Vol.48,
2W.
~
ii

1tP.

amended to read as follows:

I

"(8) for the exclusive use of the United States, any State, Territory of the United States or any political subdivision of the fores
goin , or the District of Columbia.
(b) Section 621 (a) (8) of the Revenue Act of 1932, as amended,
is amended to read as follows:

U.8. 0.,P. 1187.

*Ta24thales.
Vol. 47, p. 2o7; Vol.
a,
.1187.
IJV.

"(8) to a manufacturer, producer, or importer, in the amount of %Credits. adretmds.
tax paid by him under this title with respect to the sale of any article
to any vendee, if the manufacturer, producer, or importer has in his
possession such evidence as the regulations may prescribe that on
or after the first day of the second month following the date of the
enactment of the Revenue Act of 1935sAroles on which
"(A) such article'was, by any person"1(i) resold for the exclusive use of the United States, any
State, Territory of the United States6 or any political subdivision
of the foregoing, or the District of olumbia;
"1(ii) used or resold for use as fuel supplies, ship's stores, sea
stores, or legitimate equipment on vessels of war of the United
States or of any foreign nation, vessels employed in the fisheries or in the whaling business or actually engaged in foreign
trade or trade between the Atlantio and Pacile p orts of tho
United States or between the United States and any of its
possessions;
10401*-30--65

1026

14ru CONGRESS.

SESS. I. CH. 829. AUGUST 80, 1985.

" (iii) in the case of products embraced in paragraph (2)
of section 617(c)I as amended, used or resold for use otherwise than as fielfor the propulsion of motor vehicles, motor
boats, or airplanes, and otherwise than in the production of
such fuel: Provided, however, That no credit or refund shall be
allowed or made under this paragraph in the case of sales or
uses of products commonly or commercially known or sold as
gasoline, including casinghead and natural gasoline
"1(iv) in the case of lubricating oils, used or resold for nonlubricating purposes.
"13(B) The manufacturer, producer, or importer has repaid or
agreed to repay the amount of such tax to the ultimate vendor
or has obtained the consent of the ultimate vendor to the allowance
of the credit or refund.
6oM (c) Section 621(c) of the Revenue Act of 1982, as amended, is
amended to read as follows:
"(c) Interest shall be allowed at the rate of 6 per centum per
annum with respect to any amount of tax under this title credited
or refunded, except that no interest shall be allowed with respect
to any amount of tax credited or refunded under the provisions of
subsection (a) hereof, and except that no interest shall be allowed
for any period prior to the first day of the second month following
the date of the enactment of the Revenue Act of 1935."
of
(d) The amendments made by this section shall become effective
on the 1st

V.o.,

u'.W ;

V.'o..

o

Interest.

Effective

amendments.

date

day of the second month following the date of the enact-

ment of this Act.
Compensatory taxon
products of certain oils.

SEC. 402. COMPENSATORY TAX ON PRODUCTS OF CERTAIN OILS

Special excise tax on
carrying on liquor bus!h

SEC. 403. SPECIAL EXCISE TAX ON CARRYING ON LIQUOR BUSINESS

During any period after the thirtieth day after the date of the
enactment of this Act whenVol -48, p. 763.
(1) a processing tax is in effect under section 6022 of the
Revenue Act of 1984, or
Vol. 47, p. 260; Vol.
(2) an import tax is in effect under section 601 (e) (8) of the
480 p. 762.
Revenue Act of 1982, as amended,
Imposition of tax on there is hereby imposed upon any article (not within the scope
ducts manufatured
of either such tax) manufactured or produced wholly or in chief
value from any one or more of the oils subject to either such tax,
when such article is imported into the United States from any
foreign country or from any possession of the United States or from
the high seas, a compensatory tax equivalent to the tax which would
be payable under such section 602/2 or 601 (c) (8) upon such oil or
oils if imported into the United States or if processed in the'United
Payment.
States. The tax imposed by this section shall be levied collected, and
paid in the same manner as a duty imposed by the Tariff Act of 1930,
and shall be treated, for the purposes of all provisions of law (except
section 836 of such Act) not inconsistent with this section, as a duty
Coconut oil from imposed by such Act. All taxes collected under this section on
PhlUppine products.
account of coconut oil produced from materials wholly of Philippine
growth or production, shall be held as a separate fund and paid to
the Treasury of the Philippine Islands, but if at any time the
Philippine Government provides by any law for any subsidy to be
paid to the producers of copra, coconut oil, or allied products, no
further payments to the Philippine Treasury shall be made under
this section.
Post, p. 1743.

Vol. 44P. 93; U."S. 0.0
p.1062.

NPA
00m "

1PMNs

The special excise tax imposed by section 101 of the Revenue Act
of 1926 (IT. S. C., title 26, sec. 206) shall not apply with respect to
carrying on business after June 80, 1935.
p to

10 or

74rn CONGRESS.

SESS. I. CH. 829.

1027

AUGUST 80, 1935.

SEC. 404. INTEREST ON DELINQUENT TAXES

Notwithstanding any provision of law to the contrary interest
accruing during any period of time after the date of die enactment of this Act upon any internal-revenue tax (including amounts
assessed or collected as a part thereof) or customs duty, not paid
when due, shall be at the rate of 6 per centum per annum.
SEC. 405. DECLARATORY JUDGMENTS AS TO TAXES

Interest on datin.
quent taxe.

Declaratory

ments as to taxes.

judg*

(a) Paragraph (1) of section 274D of the Judicial Code (Public, Vol. 48, p.95.
Numbered 848, Seventy-third Congress) is amended by adding after
the words " actual controversy" the following: "(except with respect
to Federal taxes)".
(b) The amendment made by subsection (a) of this section shall Applitfdonotamend*
pply to any proceeding now pending in any court of the United ment.
States.
Failure to Me reSEC. 406. FAILURE TO FILE RETURNS
turns.
In the case of a failure to make and file an internal-revenue tax Penalty.
return required by law, within the time prescribed by law orprescribed by the Commissioner in pursuance of law, if the last date
so prescribed for filing the return is after the date of the enactment
of this Act, if a 25 per centum addition to the tax is prescribed by
existing law, then there shall be added to the tax, in lieu of such
25 per centum: 5 per centum if the failure is for not more than 80
days, with an additional 5 per centum for each additional 80 days
or fraction thereof during which failure continues, not to exceed 25
per centum in the aggregate.
SEC. 407. TAXES ON CRUDE PETROLEUM

Effective on the first day of the first calendar month following
the date of the enactment of this Act, sections 604 and 605 of the
Revenue Act of 1934 (relating to taxes on production and refining
of crude petroleum) are amended by striking out "1/10 of I cent
Per barrel" wherever appearing therein and inserting in lieu thereof
1/25 of 1 cent per barrel ".
TITLE V-GENERAL PROVISIONS
SEC. 501. DEFINITIONS

(a) When used in this Act(1) The term "person " means an individual, a trust or estate,
a partnership, or a corporation.
(2) The term "corporation'"
includes associations, joint-stock
companies, and insurance companies.
(8) The term "domestic " when applied to a corporation or
partnership means created or organized in the United States or
under the aw of the United States or of any State or Territory.
(4) The term "foreign " when applied to a corporation or partnership means a corporation or partnership which is not domestic.
(5) The term "stock "includes the share in an association, jointstock company, or insurance company.
(6) The term "shareholder " includes a member in an association joint-stock company, or insurance company.
(7) The term "United States " when used in a geographical
sense includes only the States, the Territories of Alaska and
Hawaii and the District of Columbia.
(8) The tern "Secretary " means the Secretary of the Treasury.
(0) The term "Commissioner 01 means the Commissioner of
Internal Revenue,

Taxes on crude petro.
leum.
Vol. 48, p. 766.

Title
provis-ons. V-Genoral

Deantuons.

"Poiso.-"

"Corporation.$$
"Domestlo."
'Fren."

"stock."
"Shareholder."

"United Sate
"secretary."

commissionerr"

1028

14mn CONGRESS.

"Collector."
"Includes"; "Includ.

Separability clause.

Effective date.

(10) The term "collector " means collector of internal revenue.
(b) The terms "includes " and "including " when used in a definition contained in this Act shall not be deemed to exclude other things
otherwise within the meaning of the term defined.
SEC. 502. SEPARABILITY CLAUSE
If any provision of this Act, or the application thereof to any
person or circumstances, is held invalid, the remainder of the Act,
and the application of such provisions to other persons or circumstances, shall not be affected thereby.
SEC. 503. EFFECTIVE DATE OF ACT
Except as otherwise provided, this Act shall take effect upon its
enactment.
Approved, August 30, 1935, at 6 p. m.
[CHAPTER 830.]

Aug ust, 30%193M.
R6250.1
[Publio, No. 408.1
National DetenseAct,
amendment.
Annual call, with
consent, of designated

SESS. I. CHS. 829-831. AUGUST 80, 1985.

AN ACT
To amend the National Defense Act.

Be it enacted by the Senate and House of Repre8entatives of the

United States of America in (ngre88 a8embled, That the President

is hereby authorized to call annually with their consent, upon appliReserve officers, for ac- cation to and selection by the War department, for a period of not
tive Army duty, au. more than one year for any one officer, not to exceed at any time one
thorized.
Vol. 39, p. 166; thousand Reserve officers of the combatant arms and the Chemical
U.8.0O., p.229
Warfare Service in the grade of second lieutenant for active duty
prorfw.
Existing laws, etc., with the Regular Army: Provided, That nothing herein contained
not affetwed.
shall affect the number of reserve officers that may be called to
active duty under existing laws, nor the conditions under and
purposes for which they may be so called.
Fit"omr to be
SEO. 2. That, for the period of ten years beginning July 1 1936,
commioned annually
In Regular Army.
the Secretary of War is authorized to select annual, in addition
to the graduates from the United States Military Academy, fifty
officers who shall be commissioned in the Regular Army: Provided,
Distribution.
That the Secretary of War shall determine for each annual increment the number to be allotted among the promotion list branches:
Appointees to have And provided further, That the number to be appointed in the
received active trainIng, etc.
promotion list branches shall be selected from such reserve officers
who have received the training herein authorized or from graduates
of the Army Air Corps Training Center,
Approved, August 30, 1935.
CHAPTERR 831.]
(ubi

No.

(Publio, No. 409.1

River and harbor
0 enution and supervision of work.

AN ACT
Authorizing the construction, repair, and preservation of certain public works on
rivers and harbors, and for other purposes.

Be it enacted by the Benate and House of Repre8entative8 of the
Unidte State8 of America in Iongress assembled, That the following

works of improvement of rivers, harbors, and other waterways are
hereby adopted and authorized, to be prosecuted under the direction
of the Secretary. of War and supervision of the Chief of Engineers,
in accordance with the plans recommended in the respective re-ports
hereinafter designated and subject to the conditions set forth in
such documents; and that hereafter Federal investigations and
improvements of rivers, harbors, and other waterway shall be under
the ttrisdiction of and shall be prosecuted by the War Department