1939: Increase for salaries and miscellaneous repair items. 1940: Increase for one additional position, Ramspeck promotions, and increased costs of fuel, food for animals, repair items, etc.; and one new truck. 1941: Increase for Ramspeck promotions and for minor supply items. 1943: Includes salary deficiency appropriation of $7,690; one new position, $1,320; $5,500 for new incinerator (this a nonrecurring item-incinerator not built and money turned back); $3,000 for increased food costs; $10,000 for repairs to buildings; $1,600 for new transportation equipment; balance for minor supply items. 1944: Includes salary deficiency appropriation of $7,000; balance of increase required for new positions and for salary increases occasioned by legislation changes due to Public Law 694. 1945: Includes increase of $43,638 for overtime pay; $4,420 for three new positions; $2,763 for Ramspeck promotions; $5,190 for increase in food costs; $2,400 for additional educational equipment; the balance to meet increased costs of fuel, building repair, and miscellaneous items. 1946: Includes $65,670 deficiency appropriation for increases occasionel by legislative changes in salaries; $12,000 for a new incinerator; $4,500 for road repairs; $3,600 for transportation equipment; small increase to meet added cost of sundry items. Senator CAIN: We will now hear from Mr. Ford E. Young, president of the Fussell-Young Ice Cream Co. STATEMENT OF FORD E. YOUNG, PRESIDENT, FUSSELL-YOUNG ICE CREAM CO., WASHINGTON, D. C., APPEARING ON BEHALF OF THE ICE CREAM SECTION, MERCHANTS AND MANUFACTURERS ASSOCIATION Mr. YOUNG. My name is Ford E. Young. I am president of the Fussell-Young Ice Cream Co., 1306 Wisconsin Avenue NW., appearing on behalf of the ice cream section of the Merchants and Manufacturers Association, which is composed of Southern Dairies, Melvin Dairies, and the Breyer, Good Humor, Colonial, Washington Maid, Carry, and Fussell-Young Ice Cream Cos. I am appearing in. connection with S. 843 and H. R. 2290. I am appearing neither for nor against a sales tax for the District of Columbia. Rather I am concerned about two provisions in the proposed tax law. First, page 5, lines 1 and 2, under exemptions appear the words, "milk and milk products, other than candy and confectionery." I believe that everyone would consider ice cream as a milk product. rather than a confectionery. The ice cream which is sold in the District of Columbia consists of at least 80 percent milk or milk products. I would like to submit the basic food chart put out by the United States Department of Agriculture with the following advice: You can get all the right kinds of food needed for health by using this simple guide the basic 7. Be sure to include in your meals each day at least the minimum number of servings from each group shown on the chart. Your attention is called to group 4 of the seven basic foods which includes milk, cheese, and ice cream. In order to assure ourselves that we are on firm ground, not only from the standpoint of the nutritionists in the United States Department of Agriculture but also from general usage, we looked up the terms "confection," "confectionery," and "confectionary," in four of the latest dictionaries which we could find in the Congressional Library, namely, Webster's, published in 1945 by G. & C. Merriam Co.; the Standard, published in 1946 by Funk & Wagnalls; the Oxford English Dictionary, published in 1936 by the Clarendon Press; and the Encyclopaedia Americana, published in 1946. Webster's defined "confectionery" as follows: Sweetmeats, in general, things prepared and sold by a confectioner, confections, candies. The Standard: Sweetmeats collectively that a confectioner makes or sells as candy or other articles made of sugar, sirup, honey, or the like. Oxford English Dictionary: Things made or sold by a confectioner. A collective name for sweetmeats and confections. Encyclopaedia Americana: A general term for any preparation with sugar as a base, used as a sweetmeat and containing nuts, fruits, or other flavoring. The United States confectionery is commonly called candy. I have gone to considerable lengths to bring out the fact that ice cream is a food and so classed by the nutritionists in the United States Department of Agriculture. In the Dairy Branch of the Department of Agriculture it is commonly known as a frozen dairy food. In none of the leading dictionaries is ice cream mentioned as a confection or confectionery. In fact, the Encylcopedia Americana states that in the United States, confectionery is synonymous with candy, or in their words, is commonly called candy." I presented these facts because I know that administrative officials are charged with enforcing the law which is written and many times questions come up when it is quite helpful to administrative officials to know what was the thinking of the legislators who wrote the law. I believe in fairness to the industry and to the administrative officials who will have to enforce the law if such a law is passed that this committee should go on record that confectionery does not mean ice cream, providing of course that the term under question is left in the law as it is finally passed. The second point which I believe should be cleared up is that brought up by the following on page 5, lines 11, 12, 13, 14, and 15: Provided, That the aforesaid exemptions shall not be deemed to exclude the following from the tax imposed by this title: Soft drinks and sodas and beverages such as are ordinarily dispensed at bars and soda fountains or in connection therewith (other than coffee, tea, and cocoa, beer and other similar malt beverages except as provided in paragraph (4) of this section). Apparently, the only reason for exempting coffee, tea, and cocoa and not exempting sodas and "beverages such as are ordinarily dispensed at bars and soda fountains" is that coffee, tea, and cocoa are considered foods and, by implication at least, sodas and soda fountain beverages are not. Ice cream sodas are made of a combination of ice cream and liquid which without the ice cream would probably be known as "a soft drink." Certainly the ice cream which is included in the soda is a food, and in my belief one with more food value than coffee, tea, or cocoa. Milk shakes and malted milks are also drinks commonly served at soda fountains. Their ingredients consist of milk, ice cream, flavoring, and in the case of malted milk, also malted milk. Certainly there are few if any foods that have greater food value than these drinks commonly served at soda fountains. Apparently sundaes, dishes of plain ice cream, ice cream sodas, and banana splits which consist of bananas, ice cream, flavoring, and whipped cream are not to be taxed inasmuch as they are not soft drinks or beverages. Since ice cream unquestionably is not only a food but a most thoroughly nutritious food-in fact often one of the first foods which is prescribed for an invalid or children after a sickness-should we not be consistent and eliminate from any tax bill the chance that any administrative official will consider it imperative that he tax such foods. Therefore, I suggest that the words beginning on page 5, line 13, "and sodas and beverages such as are ordinarily dispensed at bars and soda fountains," be deleted from the proposed law, or the committee go on record by a statement that these items do not include those sodas and milk beverages of which ice cream is a part. Senator CAIN. I will say to those present that we shall now adjourn these hearings for the time being. Public notice will be given when they will be resumed. Perhaps it is interesting to note, in passing, that 107 citizens of the District of Columbia, as individuals, have been heard during the course of the past several weeks, representing organizations as well as themselves. And I should like to say on behalf of Mr. Bates and myself and the entire joint committee that we have appreciated deeply and extremely the courteous attitude of those who have been in attendance, their sincerity, and their willingness to talk in terms of what they conceive the need for their city to be. I would like to add, in addition to that, that in my opinion, anyway, the presence here each day through these long hours of labor by the press has been extremely helpful to an understanding by the District of Columbia of what the Congress, in concert with them, is trying to do. I bid you good morning. ADDITIONAL STATEMENTS SUBMITTED TO THE COMMITTEES The Washington committee of the Southern Conference for Human Welfare opposes the proposed sales tax for the District of Columbia. The sales tax is, to our knowledge, one of the least equitable methods of raising revenue ever devised. At a time when the public clamors for reduction of our overinflated retail prices, the proposed sales tax is, in effect, a general 2 percent price increase. Persons with a high income allowing comfortable savings, it is true, will not miss this 2 percent. But the Government employee, the salaried worker, who must budget his income carefully to stretch it over a pay period, will suffer. He will have to make an adjustment in his spending in order to make ends meet. He either will have to buy less or demand a raise in salary. In the end, Washington's trade, as well as Washington's consumers, will suffer. 99538-47--55 Because Washingtonians cannot vote, they are forced, through no fault of their own, to pay the Federal Government more than $15,000,000 a year in service and tax exemptions. The solution to the District's revenue problems is not a sales tax, which is just as definitely an inflationary measure as a general compulsory price increase. The solution is the Federal Government's assumption of its responsibilities for the Federal city. So long as citizens of the District of Columbia are without a voice in their government, certainly it is clear logic that the Federal Government should assume a great share of the revenue responsibilities. Unfortunately, this seems to work in reverse. Apparently it is because Washingtonians cannot vote that the legislators, elected by people of the various States, give the impression that the District can be treated as a colony, to be exploited and preyed upon, Congress being certain that there can be no reprisals on election day. At any rate, it is time that we took heed of the traditional American concept"taxation without representation is tyranny." Attached is the newly adopted program of the Washington committee of the Southern Conference for Human Welfare. In the fields covered by this program there is a necessity for increased Federal appropriations for the District in order to put into effect these minimum provisions for maintaining human dignity. A sales tax will not help. A sales tax will injure those in the District of Columbia who most need help. DAVID LACHENBRUCH, (For the Washington Committee). (Whereupon, at 12:01 p. m., an adjournment was taken, subject to the call of the Chair.) (The following was later received for the record.) Hon. C. DOUGLASS BUCK, BROOKLYN 8, N. Y., April 15, 1947. Senator from Delaware, Washington, D. C. DEAR SIR: We would call your attention to the proposed retail sales tax bill for Washington, D. C., district, introduced under S. 843. The objection we raise to this particular bill is that it particularly discriminates against candy, exempting all food products other than candy and confectionery from the tax. We would earnestly ask that when you vote on this bill, you are sure that candy is not discriminated against and should be exempt from such a sales tax. Yours very truly, CYPRESS NOVELTY CORP., THE CITIZENS' ASSOCIATION OF TAKOMA, D. C. Resolved, That the Citizens' Association of Takoma, D. C., opposes any increase in taxes in the District of Columbia until the Federal Government contributes a fair share toward the support of the District of Columbia in proportion to services received and property owned, and until the income-tax laws are amended to provide for the taxation of all incomes earned within the District limits, regardless of residence, with credit being given for income tax paid in the several States; and be it further Resolved, That a copy of this resolution be spread upon the minutes of this meeting and that copies be forwarded to the District of Columbia Commissioners, the Senate and House District Committees, the President of the United States, the Federation of Citizens' Associations, the District of Columbia Petroleum Industrial Committee, and the local press and radio stations. J. STANTON BROWER, Chairman, Laws and Legislation Committee. MILWAUKEE, Wis., April 17, 1947. Senator BUCK, Washington, D. C.: One thousand one hundred and fifty delegates representing 405,000 members in attendance at convention in Milwaukee adopted unanimously the following resolution: Whereas our 8,000 members in the District of Columbia have no vote and no voice in municipal affairs; and Whereas the members of the Congress elected by you are the common council and board of aldermen regulating municipal affairs; and Whereas the Board of Commissioners of the District of Columbia have recommended additional taxation that would be ruinous to our members employed in the hotels and restaurants in the District, would cause unemployment, and no doubt force the closing of some establishments where our people are now employed: Now therefore, be it Resolved, That we, the delegates assembled in Milwaukee, make our voices heard in condemning for our voteless, voiceless brothers and sisters in the District, and that we concur with the Washington Central Labor Union in their action in protesting the enactment of the sales tax of 2 percent, 10 percent amusement tax, the doubling of all excise taxes, and any other taxes disguised, which are really sales taxes; and be it further Resolved, That the general secretary is hereby instructed to communicate by wire at once our protest on behalf of our District members to these taxes to Senator Buck, chairman, Senate Committee on District Affairs, and to Congressman Dirksen, chairman, House District Affairs Committee. ED S. MILLER, General Secretary-Treasurer, Hotel and Restaurant Employees and |