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- , = , * : 9 Action of State Attorneys-General. On May 31, a group of state attorneys-general met in Washington to consider primrily the retroactive implicatione of the Port Authority decision, At this meeting it was the general opinion that the Port Authority deolsion placed upon all public employees affected the liability, poasibly beyond the power of the Commissioner of Interna Revenue to compromise, for payment of federal income taxes, together with inter- The group therefore decided on an immediate conference with Treasury officials for the purpose of determining whether an agreement could be reached on the type of federal legislation needed to prevent retroactive taxation. Without going into detail, it 1s reported that there waa some disposition by Treasury officials to arrive by bargaining on the number of years for which back taxes should be collected, In short, no final agreement was reached on a desirable statute, Remedial legislation. Bills designed to prevent retroactive taxation ie closing days of the session by Sena Lonergan and Green and Representatives Dingell and Phillips. Nome of these measures was enacted into law, nor were they pressed vigorously, because assurances were received from Treasury officiale that no attempt would be made to assess retroactive taxes on the basia of the Port Authority decision until after Congress convenes in January. Rehearing of the Port Authority Case. Attorneys for the Port of New York Authority asked on June & for a rehearing of the case by the court because they believed the decision constituted a complete reversal of the court's former poBition. Furthermore, since attorneys for the Port Authority feel con- fident that there is adequate legal precedent for s clause in the decision prohibiting ites use to collect taxes back to 1926, they are anrious to have a rehearing in the hope that the Court may add such a clause to the decision, even