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- 3. if the decision iteelf remains unchanged. On June 9, Justice Roberts signed a stay pending action of the Court on the petition for rehearing. This petition will be heard by the Court in the fall aesaion which begina on October 1. Special Senate Committee on Taxation. Partly as the result of these foregoing developments, the U. S. Senate on June 16 created a special interim committee to make a thorough study and investigation “with respect to the taxa- tion, and the exemption from taxation of (1) securities issued by or under the authority of the United States or the several states or political subdivisions thereof. (2) income derived from such securities; and (3) income received as compensation from the United States or from any state or political subdivi- sion thereof.” The committee, which is to report not later than March 1, 1939, con- siste of Senators Austin of Vermont, Logan of Kentucky, and McGill of Kansas from the Senate Judiciary Committee; and Senators Brown of Michigan, Byrd of Lies Virginia and Townsend of Delaware from the Senate Finance Committee. Although 7 hearings will undoubtedly be held, the committee has not, on August 1, organized or announced its plans. Report of the U. S. Department of Justice. In a report issued only within the last few weeks, the Department of Justice says, “In Helvering vs. Gerhardt, the Court made a far-reaching departure from the view thet employees of the state as well as the Federal government were exempt from taxation..... The opinion seems broad enough to cover all employees of atate and municipali- ties.” * This same study atates that the Port Authority decision seems also to apply to state and municipal ponds. These, then, are the facts in the immediate background of two Important queetions concerning municipal officials. Stated again, these questions are ; (1) whether the incomes of mmicipal officials and employees and from mmnicipal & bonds should be taxed by the Federal government, and (2) whether such taxes should be made retroactive. i *TItalics ours.