Repeal of Tax on Education 25 



tutions. An amendment introduced by Senator Henry L. 

 Myers of Montana, providing for total exemption, was de- 

 feated, but an amendment introduced by Senator Henry F. 

 Hollis, exempting gifts to an amount not in excess of 15 per 

 cent, of the taxpayer's taxable income, was passed. Encour- 

 aged by this action, the National Committee, in cooperation 

 with the Special Committee, of which Professor Samuel Mc- 

 Cune Lindsay of Columbia University was Chairman, renewed 

 their efforts to have this iniquitous legislation repealed. At 

 the request of the Committee, Mr. Lewis Cass Ledyard pre- 

 pared a brief, reviewing State and Federal tax laws, and point- 

 ing out the disastrous effect of the existing law on the Sage 

 Bequests. Copies of this brief were sent to all the members 

 of the Senate Finance Committee and the Ways and Means 

 Committee of the House. The New York Committee appointed 

 Professor Lindsay its representative at Washington. The final 

 result is most gratifying. The Revenue Bill, adopted by the 

 Senate and House, reads : 



Sec. 403. That for the purpose of the tax the value of the net estate 

 shall be determined— 



(a) In the case of a resident, by deducting from the value of the 

 gross estate— 



(1) *** 



(2) *** 



(3) The amount of all bequests, legacies, devises, or gifts, to or for 

 the use of the United States, any State, Territory, any political sub- 

 division thereof, or the District of Columbia, for exclusively public 

 purposes, or to or for the use of any corporation organized and oper- 

 ated exclusively for religious, charitable, scientific, literary, or educa- 

 tional purposes, including the encouragement of art and the prevention 

 of cruelty to children or animals, no part of the net earnings of which 

 inures to the benefit of any private stockholder or individual, or to a 

 trustee or trustees exclusively for such religious, charitable, scientific, 

 literary, or educational purposes. This deduction shall be made in case 

 of the estates of all decedents who have died since December 31, 1917; 



This retroactive application of the law will enable the Mu- 

 seum to reap the full value of the Sage Bequest and the Doug- 

 las Bequest. 



