The CHAIRMAN. Our first witness is the Honorable George Mahon of Texas, Member of the U.S. House of Representatives. Congressman, do you care to come forward? Mr. Sebelius, would you come forward, too? Let's have the whole group come forward at once and save travel time. Mr. PASSMAN. Good morning, Mr. Chairman. STATEMENTS OF HON. GEORGE H. MAHON, A REPRESENTATIVE FROM TEXAS; HON. OTTO E. PASSMAN, A REPRESENTATIVE FROM LOUISIANA; AND HON. KEITH G. SEBELIUS, A REPRESENTATIVE FROM KANSAS Mr. MAHON. Mr. Chairman, it was called to my attention, by representatives of the Supreme Council, a 33d degree mason, Scottish Rites, that the facilities here were not exempt from taxation in the same manner that the facilities of the comparable groups were free from District taxation. The Scottish Rite organization has done a great deal in the District of Columbia and elsewhere for charitable objectives. On page 3 of the report by Chairman McMillan of the District of Columbia subcommittee, is a partial list of charitable contributions made by the Supreme Council, to which we are now making reference. One contribution is to George Washington University in the sum of $1,025,000, another to the George Washington University in the sum of $1 million. And there are various contributions over the years to various organizations such as the American University and Vanderbilt University, and so forth. So in the interests of fairness and equality, it was thought that these facilities in the District of Columbia should be exempt from District taxation in accordance with the law, and in accordance with the practice. Now, Mr. Passman is an outstanding authority in this field, certainly much better advised than I am in regard to this problem which is before us today. I have followed his leadership in connection with this problem which is before us. Bills identical to my bill which is before you were introduced by Mr. Evins, Mr. Sebelius, and others. We feel, as a matter of justice and propriety, that this legislation should be approved. That is about all I would like to say. I am very much interested in seeing that we take favorable action. I believe favorable action is in keeping with the general intent of the Congress in regard to these matters. Thank you, Mr. Chairman. The CHAIRMAN. Thank you, Congressman Mahon. Congressman Passman. Mr. PASSMAN. That was a very beautiful compliment my chairman. paid me. I do not know anything particularly I can add to what the chairman said, other than to go into a bit more detail. This organization operates entirely for educational, charitable, and for no other purpose. And the Supreme Council on 16th Street is not local in nature; its building is the national headquarters for 36 States, and many Asiatic countries. All of the revenue accruing to the Supreme Council from the per capita dues and from any investment goes entirely for charity and for educational purposes. The chairman indicated that page 3 of House Report 92-321 is only a partial list of the contributions made by the Supreme Council amounting to $2,501,000. In addition to the large contributions made in the District of Columbia by the Supreme Council, there are 118 consistories, with a membership of 550,000 in the 36 States and Asiatic countries, that grant scholarships to the extent of $175,000 at George Washington University and other groups in the District of Columbia which, of course, help very greatly the economy of the District. The Supreme Council maintains a very fine library, which is one of the best libraries in the country; it is open to the general public. Any person can go there and stay as long as he may want to in order to get information. I think, Mr. Chairman, that Congressman Diggs of Michigan introduced a bill, if I recall, in 1964, exempting the United Supreme Council, 33d Degree, Ancient and Accepted Scottish Rite of Freemasonry, Southern Jurisdiction-Prince Hall Affiliation, from District ad valorem. We were under the impression at the time, that an amendment would be offered, or sent to the committee where both of the Supreme Councils could be included. About three of us had that in mind. Each of the three neglected to offer the amendment. Therefore, the bill went through as a single bill, and of course, I understand that the officials of the District of Columbia opposed it as a normal procedure because it deals with a bit of ad valorem taxes. This bill passed, of course, the House and the Senate and became law, exempting them from any ad valorem. The CHAIRMAN. What Congress was that? Was it the 84th Congress? I can't find the Prince Hall exemption on it. Mr. PASSMAN. I don't know if it is listed as Prince Hall, but I will find it for you, sir. Page 4, in 1964, the Congress enacted Private Law 88-296 (78 Stat. 1173) exempting from District of Columbia taxation, the real property, and so forth. I will not read the remainder. It gives the law there. In all probability, if the distinguished chairman would take the time to read the entire report, I think he, too, would be impressed with the fact that the District of Columbia benefits greatly by having the national organization named in the bills domiciled in the District of of Columbia. For whatever it may be worth, Mr. Chairman, in the 50 States, there are 50 Grand Lodges which operate, of course, for charity and for educational purposes. And all 50 of them are exempt from ad valorem taxes. Of course, that is also true with respect to the George Washington Masonic Memorial in Alexandria, Va., of which we are all proud, regardless of our denominations or affiliations, because it is a credit to that city that is so near. That institution, of course, is exempt from ad valorem taxes, because it is entirely educational, as is the Supreme Council. I might mention in passing, I hope this distinguished committee certainly will give some thought to our feelings about this and our representations here this morning. Surprisingly enough, not a dissenting vote in the House of Representatives on Chairman Mahon's bill was cast. That is the first time I can ever recall a bill passing the House of Representatives where there were no voices raised against such a measure, which indicates they recognize that it is a charitable institution operating entirely for education and charity, and that they should be favorably considered as was the other Supreme Council. Mr. Chairman, with your permission, I should like to deliver a letter to you from the Honorable Joe Evins of Tennessee, who, of course, introduced one of the identical bills and who endorses this gram. And you, sir, if you think well of it, could make it part of the record. pro I will try to answer any questions if there are any, Mr. Chairman. Mr. PASSMAN. No; I said Grand Lodges. The CHAIRMAN. Fifty other Grand Lodges, one in each State, and the real estate holdings of those 50 Grand Lodges are tax exempt? Mr. PASSMAN. They are ad valorem exempt, yes, sir; because they are entirely for charity and education. The CHAIRMAN. Would they be tax exempt under the general statute of the respective States, or are they made specifically tax exempt by reason of a law applicable to them? Mr. PASSMAN. By the fact that they operate for education and charity only. There are no commercial investments, and no profit accruing to any individual. There were only two States where this had to be settled by the courts, I understand, and those were Indiana and Kentucky. In one instance, it moved up to the supreme court of the State, and they ruled it was exempt because it operated entirely for education and charity, as does the Supreme Council. The CHAIRMAN. The operations of this Supreme Council here in the District of Columbia, insofar as its endeavors are concerned, are identical to the endeavors and activities of the 50 Grand Lodges in the other States? Mr. PASSMAN. No; I might say this, Mr. Chairman. As we think in terms of a Grand Lodge in a State, I don't know whether you remember this or not The CHAIRMAN. I am a member of a rival group. Mr. PASSMAN. If you are referring to our good brothers over in the KC, some of them are our most enthusiastic supporters. Because if you are familiar with Shriners' Crippled Childrens Hospital, many of our financial supporters are active members of the Knights of Columbus, because any child can go there. And it is one of the greatest institutions we have the treatment of these crippled children. We have about seven of them in this country, and race and creed don't enter into it. The CHAIRMAN. We have a magnificent one in St. Louis, my home city. Mr. PASSMAN. That is correct. So the Grand Lodge of the Statelet's take the State of Louisiana, where we have 77,000 masons. We have 385 lodges, and the Grand Lodge is over all the lodges. It has been my privilege to serve as Grand Master of the masons. So, they operate as Blue Lodge Masons. Then you have what we refer to as the Supreme Council. Those who are 32d degree masons are members of the Supreme Council, by the fact that there is back in Louisiana, we have what we refer to as three consistories, or four, one in New Orleans, one in Baton Rouge, and one in Shreveport, with a membership of 32,000. You have to be a Blue Lodge Mason to be a consistory mason. Then a certain amount of the dues come to the Supreme Council. I merely mention that, since this fraternity is entirely from the Blue Lodge on up to that of the Supreme Council, entirely for charity and for education. No part of it ever accruing to any individual. It is generally understood that all branches, whether it is the consistory, or the Supreme Council or the Blue Lodge, are exempted from ad valorem. I referred to the George Washington Lodge in Alexandria before. The CHAIRMAN. Is the principal thrust of the Supreme Council of the Scottish Rite here in the District of Columbia likewise charity and education? Mr. PASSMAN. Entirely charity and education. We could have a more comprehensive list in this report. We selected certain random institutions that they made contributions to. You will note, that over $2 million of it went to George Washington University here. But in passing, I mention also that the consistories back in the States, they, too, finance scholarships and it happened, that the District of Columbia were recipients-a lot of money is spent from the very fact that the consistories, comprised of 32d degree masons, do have scholarships here in George Washington University. The CHAIRMAN. Thank you, Mr. Passman. Mr. SEBELIUS. Mr. Chairman, I won't go into this in great detail, because it would be duplication. However, I would like to associate myself with the remarks of the two gentlemen preceding me here, and add that I have attended George Washington University, and I am aware of the program. I know it is doing a great thing for education, especially here in the District of Columbia. And I would only urge the subcommittees and the Committee of the Whole to give it favorable consideration. The CHAIRMAN. Thank you very much, Mr. Sebelius. We will make Congressman Evins letter part of the record. (Letter referred to follows:) CONGRESS OF THE UNITED STATES, Hon. THOMAS F. EAGLETON, Chairman, Subcommittee on Fiscal Affairs, DEAR MR. CHAIRMAN: I am pleased that your distinguished Subcommittee has scheduled a hearing on H.R. 7718, a bill to exempt from taxation by the District of Columbia certain property which is owned by the Supreme Council of the Scottish Rite of Free Masonry. As much as I should like to personally be present and testify in favor of this meritorious measure, circumstances prevent my being able to be in attendance at your hearings today. I am, therefore, utilizing this means to convey to you and the Members of your Subcommittee my strong support and full endorsement of the bill. If I had been present, I would have testified in a manner as I did when I urged the House of Representatives to pass this legislation on July 12, 1971. The pages of the Congressional Record containing my remarks are appended to this letter for reference. With kindest regards and best wishes, I am Very sincerely yours, 65-942 -71-3 JOE L. EVINS, M.C. institution operating entirely for education and charity, and that they should be favorably considered as was the other Supreme Council. Mr. Chairman, with your permission, I should like to deliver a letter to you from the Honorable Joe Evins of Tennessee, who, of course, introduced one of the identical bills and who endorses this program. And you, sir, if you think well of it, could make it part of the record. I will try to answer any questions if there are any, Mr. Chairman. Mr. PASSMAN. No; I said Grand Lodges. The CHAIRMAN. Fifty other Grand Lodges, one in each State, and the real estate holdings of those 50 Grand Lodges are tax exempt? Mr. PASSMAN. They are ad valorem exempt, yes, sir; because they are entirely for charity and education. The CHAIRMAN. Would they be tax exempt under the general statute of the respective States, or are they made specifically tax exempt by reason of a law applicable to them? Mr. PASSMAN. By the fact that they operate for education and charity only. There are no commercial investments, and no profit accruing to any individual. There were only two States where this had to be settled by the courts, I understand, and those were Indiana and Kentucky. In one instance, it moved up to the supreme court of the State, and they ruled it was exempt because it operated entirely for education and charity, as does the Supreme Council. The CHAIRMAN. The operations of this Supreme Council here in the District of Columbia, insofar as its endeavors are concerned, are identical to the endeavors and activities of the 50 Grand Lodges in the other States? Mr. PASSMAN. No; I might say this, Mr. Chairman. As we think in terms of a Grand Lodge in a State, I don't know whether you remember this or not The CHAIRMAN. I am a member of a rival group. Mr. PASSMAN. If you are referring to our good brothers over in the KC, some of them are our most enthusiastic supporters. Because if you are familiar with Shriners' Crippled Childrens Hospital, many of our financial supporters are active members of the Knights of Columbus, because any child can go there. And it is one of the greatest institutions we have the treatment of these crippled children. We have about seven of them in this country, and race and creed don't enter into it. The CHAIRMAN. We have a magnificent one in St. Louis, my home city. Mr. PASSMAN. That is correct. So the Grand Lodge of the Statelet's take the State of Louisiana, where we have 77,000 masons. We have 385 lodges, and the Grand Lodge is over all the lodges. It has been my privilege to serve as Grand Master of the masons. So, they operate as Blue Lodge Masons. Then you have what we refer to as the Supreme Council. Those who are 32d degree masons are members of the Supreme Council, by the fact that there is-back in Louisiana, we have what we refer to as three consistories, or four, one in New Orleans, one in Baton Rouge, and one in Shreveport, with a membership of 32,000. |