NEWS CONFERENCE 249

the Comptroller. With a court determination there can be no
doubt in anyone's mind about the validity of the act and possible
future suits will be forestalled.

Q. Governor, the Attorney General was asked for an opinion on
April 28th. Did he in any way notify you before yesterday that the
declaratory judgment was proposed?

A. He advised me in a routine written opinion that the law was
constitutional.

Q. But the request that came from the Comptroller never reached
your office?

A. No, I wasn't specifically advised of that, and I wouldn't expect to
be made aware of it.

Q. Governor, on other tax subjects, if I may, last week it was one
of the loopholes that was exploited which would permit corporations
to be excluded from paying a capital gains tax for the first half of
this year. Now, one of the State legislators, Senator McGuirk, is calling
today on you to call a special session to erase that inequity. Would
you respond to that?

A. My belief is, although I have no written opinion on this at yet,
that this contention is not a valid contention. And I have got to wait
for the Attorney General's formal opinion in this regard, but, from
what I can learn about the situation, the contentions raised are not
valid and the corporations will not be treated any differently than
individuals. Therefore, there would be no necessity for any special
session.

Q. What if the Attorney General's ruling turned out to be other-
wise? Would you consider it?

A. I doubt it. I don't think that it's a matter that would require
bringing the Legislature back into session. Certainly, the thing could
be treated so that the next session of the Legislature might be able to
make suitable adjustment, or to reason their way out of whatever
dilemma might have arisen.

Q. Are you suggesting a retroactive tax?

A. I'm not suggesting it, no. I'm simply saying that these matters
can be adjusted.

Q. What do you mean by adjusted?