Your letter of June 27th has been received. I am sorry that the Governor is not here and cannot personally answer. He left this morning for Ashe county to investigate the unfortunate situation that has arisen there in connection with the enforcement of the Selective Service Law.

However, on yesterday the Governor had a talk over the phone with Mr. Hammer, United States District Attorney, in Asheboro, and he agrees with Mr. Hammer that the State and county cannot collect license tax from labor agents who are paid for their work by the United States Government. Most of the agents who have been working this state are not so paid, but receive salaries or commissions from private companies that have Government contracts. Where agents are paid by these companies they are liable for state and county tax.

I understand from Mr. Hammer that the Dupont Engineering Company is a volunteer organization and does work for the Government without compensation, and its agents receive their pay directly from the Government. If this is true they, of course, are not liable for license tax. This is the opinion of the Governor.