Appendix — Alabama Power Co. v. Ickes

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APPENDIX »

TABLE OF CONTENTS

A. Aots of Congress:

1. Title II of Nation#i Industrial ‘Recovery Act (c. 90,

2. Emergency Appropriation Act, Fiscal year 1935 (c. 648

3. Emergency Relief Appropriation Act of 1935 (c. 48, 49

EEE ee ee

: & First Deficiency App ppropriation Act, Fiscal year 1936

(c. 689, 49 Stat. 1597, 1608, 1609) __......._------

5. Public Works Administration Extension Act of 1937

(Public Res _ {Noi 47, 75th Cong.) -_-__------ Rawat

. B, Executive Orders:

_ 1. No. 6174, June 16, 1933_______._-....------------

Oia ok hnann a nnenenscece-oe

3. No. 6252, August 19, 1933___..-___._-__.__________

- 4. No. 6929, December 26, 1934__.....-___._.-__------

5. No. 7064, June 7, 1935_ Te i aap emnanenes

©. State Legislation:

. 1. Alabama Acts, Extra Session, 1933, No. 107_._____---

2. South Carolina Acte,1933, No. 299___..__..___-----

|) 8. South Carolina Acts, 1984, yn ----4.-.-.--.-

D. Legislative History:

1. Intent of Congress with iain to Nieeaiaiined proj-

_ ects, as shown by legislative history of Emergency

' Relief Appropriation Act, 1935____......_._,--- 2.

2. Interpretation of the words “‘work under each particu-

lar project” in the 1935 Act............--.------:

3. The ‘provision relating to the Public Works A

e ‘tration contained in the’ First Deficiency Appro- -

priation Act, Fiscal year 1936; Debates thereon; and

e ' $tatement by the Chairman of the House Committee

on Appropriations in explanation of the provision__

4. Inclusion of generating plants and distribution systems —

_within the meaning of Title IT of the National Indus- -

trial Recovery Act__-_-..-....--- Giteestnnnennee

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APPENDIX A a J

- ACTS OF CONGRESS |

| 1

Trrtz II oF NatyonaL InpustrRiaL Recovery. Act

(c. 90, 48 Start. 200)

AN ACT To encourage national industrial recovery, to foster fair | y

competition, and to provide for the construction of certain usefal ,

_ public Works, and for other purposes. -*

Be it enacted by the Senate and House of Repre- ,

sentatives of the Untted Staté& uf América in 2

Congress assembled, ° :

. a / - es *

Trrtz I1—Pusiic Works aNp CONSTRUCTION

FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC | ~ Fei e

_ _ WORKS a : Ia

Section 201. (a) To effectuate the purposes of — ‘ied

this title, the President is hereby authorized to — .

create a Federal Emergency Administration of

Public Wérks, all the powers of which shall be

_ exercised by a Federal Emergency Administrator

of Public Works (hereafter referred to as-the | ie t

“‘Administrator’’), and to establish such agencies, © Jar

to aceept and utilize such voluntary and uncompen- elt

sated services, to appoint, without regard to the ree.

civil service laws, such offgpers and employees, and

to utilize such Federal officers and employees, and,

with the consent of the State, such State and local -

officers and emiployees as he may find necessary, to

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: prescribe their authorities, duties, responsibilities,

and tenure, and; without regard to the Classifica-

tion Act of 1923, as amendéd, to fix the compensa- S

tion’ of any officers and employees so appointed.

- The President may delegate any of his fulhctions

and powers under this title to such officers, agents,

and employees as he may designate or appoint.

(b) The Administrator may, without regatd to

the civil service laws or the Classificatior’ Act.of

1923, as amended, appoint and fix the compensa

tion of such experts and such other offigers and

employees as are necessary to carry out the provi-

sions of this title; and may make such expendi-

tures dincluding expenditures for personal serv-

ices And rent at the seat of government and else-

where, for law books and bogks of reference, and

for paper, Brinting, and binding) as are necessary

to carry out the provisions of this title. :

‘ (ec) AH such compensation, expenses, and allow-

| — shall be paid, out of fynds made available

byt

s Act.

(d). After the calpain of two years sithaie the

date of the enactment of this Act, or sooner if the

President shall by procl&mation or the Congress

shall by jdint resolution declare that the emergency

recognized by section 1 has ended, the President

shall not make any further loans or grants or enter

upon any new construction under this title, and

any agencies established hereunder shall cease to

exist and any of their remaining functions shall be.

transferred to such departments of the Govern-

ment as the President shall designate: Provided,

That he may issue funds to a borrower under this _

7 title prior to January 23, 1939, under the terms of

any agreement, or any commitment to bid upon or

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purchase bonds, entered into with such borrower

prior to the date of termination, under this sec-

- tion, of the power of the President to make loans.

_ xo. 202. The Administrator, under the direc-

~ tion, of the President, shalkprepare a comprehen-

sive program of public works, which shall inelude

among other ¢hings the following: (a) Construe- * “

tion, repair, and improvement ofspublic highways

and park ways, public buildings, and any publicly |

owned instrumentalities and facilities; (b) conser-

vation and development of natural resources, in-

cluding control, utilization, and “purification of

_ waters, prevention of soil or coastal erosion, devel-

opment of water power, transmission of electrical

energy, and construction of river and harbor im-

provement and flood control and the construc-

tion of any river or drainage improvement required

to perform or satisfy any obligation incurred by.

the United States through a treaty with a foreign

Government heretofore ratified and to restore or

develop for the use of any State or its citizens ,

water taken from or denied to them by perform- _

ance on the part of the United States of treaty

obligations heretofore assumed: Provided, That no

river or harbor improvements shall be carried out

unless they shall have heretofore or hereafter been

adopted by the Co or are recommended by «

the Chief of Engin of the United States Army;

structed or Carried on either directly by public,

. ‘authority or with public aid to serve the interests *

= of the general public; (d) construction, recon-

"struction, alteration, or repair under pubic regu-

lation or control ‘of low-cost housing and slum-

clearance projects; (e) any project (other than

ge? geet & «

PPLE DLE EO NE PERE Lo PEE

“

those included in the foregoing classes) of any

character heretofore eligible for loans under sub-

section (a) of section 201 of the Eqergency “Re-

lief and Construction Act of 1932, as amended,

and paragraph (3) of such subsection (a) shall

for such purposes be held to include loans for

the construction or completion of* hospitals the

operation of which is partly fmanced from public

funds, and of reservoirs and pumping plants and

for the construction of dry docks; and if in the

opinion of the President it seems desirable, the

. construction of naval vessels within the terms

. and/or limits established by the @pion Naval

Treaty of 1930 and of aircraft required therefor

and constwuction of heavier-than-air aircraft and

technica] construction for the Army Air Corps and

such y housing projects as {he President may

appmove, and provision of original equipment for

the mechanization or motorization of such Army

tactical units as he may designate: Provided, how-

ever, That in the event of an international agree-

ment for the further limitation of armament, to

which the United States is signatory, the Presi-

dent is hereby authorized and empowered 40 sus- ~

pend, in whole or in part, any such naval or mili-

tary construction or mechanization and motoriza-

tion of Army -units: Provided further, That this

title sKall not be applicable to public works under

the jurisdiction or control of the Architect of the

Capitol, or of any commission or committee for .

which such Architect is the contracting and/or

executive officer. . =

Sec. 203: (a) With a view to increasing employ-

ment quickly (while reasonably securing any loans.

made by the United States) the President is au- —

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. 24

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thorized and ¢ empowered, through the Administra- ?

tor or thréugh such other agencies as he may desig:

nate or create, (1) to Construet, finance, or aid in

the construction or financing of any public-works

project included in the program prepared pursu-

ant to section 202; (2) upon such terms as the Pres- *

ident shall prescribe, to make grants to States, mu-

nicipalities, of other public bodies for the con-

structio ; or improvement of any such proj-

ec bat no euch grant shall be, in exosse of 30.

percentum of the cost of the labor and: materials °

_ employed upon such project ; (3) to acquire. by

purchase, or by exercise of the power of eminent

domain, any real or. personal property in connec- *

tion with the construction of any such project, and

to sell any security, acquired or any property so

~ eonstructed or acquired or to lease any such prop- !

erty with or without the privilege of purchase:

‘Provided, That all ‘moneys received from any such : 4

sale or lease or the repayment of any loan shall be ae

used to retire obligations issued pursuant to sec-

tion 209 of this Act, in addition .to ther

moneys required to be or such purpose; (4)

to aid in the, financing of such Yailroad mainte-

nance and équipment as muy be“ approved by the g

Interstate Commerce Commisston as desirable for “

the improvemenf of transportation facilities; and _

°) to advance, upon. request of the Commission ~ -

ving jurisdiction of the project, the unappro-

rere balance of the ‘sum authorized for carrying

out the provjsions of the Act entitled “An Act ‘to

provide for construction and equipment of an om i

annex to the Bibrary of Congress,” approved June _

18, 1930 (46 Stat. 583); such advance, to he ex- -

pended under the direction of such Commotion

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and in accordance with such Act: Pisstiies, That

. in deciding to extend any aid or grant hereunder —

aS a to any State, county, or municipality the President

SO may consider whether action is ip process or in -

‘[. | good. faith assured therein reasonably designed to

bring the ordj current expenditures thereof

within the firudently estimated revenues thereof.

The provisions of this section and section 202 shall —

extend to public works in the several States, ©~

a _ Rico, the Canal Zone, and the Virgin Islands.

- (b) All expenditures for authorized travel hy.

officers and employees, including subsistence, re-

quired “on account of any ‘Federal: public-works

projects, shall be charged to the amounts allocated

to such projects, notwith}tanding any other provi- ~

sionsof law; and there is authorized to be eraployed

such personal servicés in the Distrief of Columbia

and elsewhere as may be required to be engaged ©

upon such work and to be in addition to employees

otherwise provided -for, the compensation of such

additional personal servicés to be a charge.against

the funds made available for such construction

work.

(ec) In th acquisition of any land or site for the

purposes of Federal public buildings and in the

construction of such buildings provided for in this .

title, ‘the provisions contained in sections 305 and ©

206 of the Eme.:gency Relief and. Construction Act

. of 1932, as amended, shall apply. P

(da) The President,. in_his discretion, and undér

if. such terms as he may prescribe, may extend any*

a | . of the benefits of this title to any State, county, or

: municipality, notwithstanding any constitutional or

legal restriction.or limitation on the right or power

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of dant State; county, or municipality to borrow

‘money or incur indebtedness. ,

- So. 204. (a) For the purpose of providing for

emergensy construction of public highways and

— projects, the President is authorized to

make grants to the highway departments of the ~

: aia States in an amount not less than. $400,-

000,000, to. be expended by such departments. in

accordance with the provisions of the Federal

Highwhy Act, approved November 9, 1921, as

- amended and supplemented, except as provided i in

this title, as follows:

(1) For expenditure in emergency construction

_ on the Federal aid highway system and extensions

thereof into and through municipalities. The

amount apportioned to any State under this para-

..grapk may be used to pay all or any part of the — |

cost of surveys,-plans, and of highway and bridge |

construction, including. the elimination of hazards

to highway traffic, such as the separation of grades .

-at crossing, the reconstruction of existing railroad

grade crossing ‘structures, the relocation of high- -

| @ ways to eliminate railroad cressings, the widening

of narrow bridges and roadways, the building of

footpaths, the replacement of unsafe bridges, the

construction of routes to avoid congested axeas, the -

construction of facilities to improve accessibility

and the free flow of traffic, and the cost. of any

> other construction that will provide. safer traffic

facilities or definitely eliminate existing hazards

to pedestrian or vehicular traffic. No funds madé

available by this title shall be used for the agquisi-

tion of any land, right of way, or easement in con-

nection with any -railroad grade —

project.

(2) For expenditure in emergency construction

on secondary or feeder roads to be agreed upon by

the State highway departments and the Secretary

of Agriculture: Provided, That the State or re-

sponsible political subdivision shall provide for the

proper maintenance of said roads, Such grants -

shall be available for payment of the full cost of

surveys, plans, improvement, and construction of

secondary or feeder reads, on which projects shall

be submitted by the State highway department and _

approved :by the Secretary of ines, 3

(b) Any amounts allocated by the President for.

grants:under subsection (a) of this section shall

be apportioned among the several States seven-

eighths in accordance with the provisions of sec-

tion 21 of the Federal Highway Act, approved

November 9, 1921, as amended and supplemented

(which Act is hereby further amended for the pur-

poses of this title to include the District of Colum-

bia), and one-eighth in the ratio which the popu-

lation of each State bears to the total population

of the United. States, according to the latest de-

, cennial census and shall be available on.July 1,..

1933, and shall remain available until expended;

but no part of the funds apportioned to any State

need be matched by the State, and such funds may

also be used in lieu of State funds to match unob-

‘ligated balances of previous apportionments of

regular Federal-aid appropriations...

such grants shall contain provisions establishing

minimum rates of wages, to be predetermined by

the State highway department, which contractors

shall pay to skilled and unskilled labor, and such

minimum rates shall be stated in the invitation for

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bids and shall be included i in proposals for bids for

the work. |

(d) In the expenditions of such amounts, the

* limitations in the Federal Highway Act, approved

November 9, 1921, as amended and supplemented,

upon highway construction, reconstruction, and

bridges within municipalities and upon payments

per mile which may be made from Federal funds,

shall not apply.

(e) As used in this section the term ‘‘State’’ in-

eludes the Territory of Hawaii and the District of

Columbia. The term ‘“‘highway’’ as defined in the

Federal Highway Act approved November 9, 1921;

as amended and supplemented, for the purposes of

this section, shall be deemed to include such main

parkways as may be Semgnates by the State and

approved by the Secretary of Agriculture as part

of the Federal-aid highway system.

(f) Whenever, in connection with the construc-

tion of any highway project. under this section or

section 202 of this Act, it is necessary to acquire

rights of ‘way over or through any property or

tracts of Jand owned and-controlled by the Govern-

ment of the United States, it shall be the duty of

the proper official of the Government of the United

States having control of such property or tracts of

land with the approval of the President and the _

Attorney General of the United States, and with- .

out any expense. whatsoever to the United States,

to perform any acts and to execute any agree-

ments necessary to grant the rights of way so

required, but if at any time the land or the prop-

- erty the subject of the agreement shall cease to

- be used for the purposes of the highway, ‘the title

‘in and the jurisdiction over the land or property

. 10

shall automatica'ly revert to the Government of

the United States and the agreement shall so

provide.

> (g) Hereafter in the administration of the Fed-

wa Highway Act, and Acts amendatory thereof or

supplementary thereto, the first paragraph of sec-

tion 9 of said Act shall not apply to publicly owned

toll bridges or approaches thereto, operated by the

highway department of any State, subject, how-

ever, te the condition that all tolls received from

the operation of any such bridge, less the actual .

eost of operation and maintenance, shall be applied .

to the repayment of the cost of its construction or

acquisition, and when the cost of its construction or

acquisition shall have been repaid in full, such

bridge thereafter shall be maintained and. operated

~as a free bridge.

Sec. 205. (a) Not less than $50,000,000 of the

amount made available by this Act shall be allotted

for (A) national forest highways, {B)* national

_ forest roads, trails, bridges, and related: projects,

parks owned or authorized, (D) roads on Indian

reservations, and (E) roads through publie lands,

_ to be expended in the same manner as provided in

paragraph (2) of section 301 of the Emergency

Relief and Construction Act of 1932, in the case of

appropriations allocated for such purposes, re-

. spectively, in such section 301, to remain available -

until expended. . ¥

(b) The President may also allot funds made

available by this Act for the construction, repair,

and improvement of public highways in Alaska.

the Canal Zone, Puerto Rico, and. the Virgin

Islands. .

Sec. 206. All contracts let for construction

projects and all loans and grants pursuant to this

title shall contain such provisions as are necessary

to insure (1) that no convict labor shall be ‘em-

ployed on any such project; (2) that (except in

executive, administrative, and supervisory posi-

tions), so far 2s practicahle and feasible, no indi-

vidual directly employed on any such project shall

be permitted to work more than'thirty hours in dny

- one week; (3) that all employees shall be paid just

and reasonable wages which shall be compensation

sufficient to provide, for the hours of labor as lim-

ited, a standard of living in decency and comfort;

(4) that. in the employment of labor in connection

with any such project, preference shall be given,

where they are qualified, to ex-service men with de-

pendents, and then in the following order: (A) To

citizens of the United States and aliens who have

declared their intention of becoming citizens, who

are bona fide residents of the political subdivision

and/or county,in which the work is to be per-

-formed,.and (B) to citizens of the United States

and aliens who have declared their intention of be- |

coming citizens, who are bona fide residents of the

State, ‘Territory, or district in which the work is to

be performed: Provided, That these preferences

_ shall apply only where such labor is available and

qualified to perform the work to which the employ-

ment relates; and (5) that the maximum of human

labor shall.be used in lieu of machinery wherever

practicable and consistent with sound a 98

public advantage.

Sec. 207. (a) For the purpose of sepuditios the

actual construction of public works contemplated —

_ by this title and to provide a means of financial

assistance to persons -uncer contract with. the

United States to perform such construction, the

President is authorized and empowered, through

‘l the Administrator or through such other agencies

' as he designate or create, to approve any as-

signment executed by any such contractor, with the

written consent of the surety or sureties upon the

penal bond executed in connection with his con-

~ tract, to any national or State bank, or his claim

against the United States, or any part oi such

claim, under such contract; and any assignment ‘so

approved shall be valid for all purposes, notwith-

standing the provisions of sections 3737 and 3477

of the Revised Statutes, as amended. —

— _ (b) The funds received by a contractor under

any advances made in consideration of any such

~ assignment are hereby declared to be trugt funds

in the hands of such cohtractor to be first applied

to the payment of claims of subcontractors, archi-

tects, engineers, surveyors, laborers, and material

men in connection with the project, to the payment

of premiums on the penal bond or bonds, and pre-

,_ miums accruing during the construction of such

* project on insurance policies taken in connection

therewith. Any contractor and any officer, di-

rector, or agent of any such contractor, who ap-

plies, or consents to the application of, such funds

for any other purpose and fails to pay any claim or

premium hereinbefore mentioned, shall be deemed

_ guilty of a misdemeanor and shall be punished by

' a fine of not more than $1,000 or by iniprisonment

‘ for not more than one year, or by both such fine and

imprisonment.

(ce) Nothing in this section shall be considered

as imposing upon the assignee any obligation to

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see to the proper application of the funds ad-

vanced by the comgaee: in consideration of such

SUBSISTENCE | HOMESTRADS : .

Sec. 208. To provide for aiding the redistribu- ;

tion of the overbalance of population in industrial -

centers $25,000,000 is hereby made available to the

President, to be used by him through such agencies

as he may establish and under such regulations as

he may make, for making loans for and otherwise

aiding in the purchase of subsistence homesteads. =

The moneys collected as repayment of said loans 4

shall constitute a revolving fund to be administered

as directed by the President for the purposes of

this section. i

RULES AND REGULATIONS

Sec. 209. The President is authorized to pre-

scribe such rules and regulations as may be nec-

essary to carry out the purposes of this title, and

any violation of any such rule or regulation shall

be punishable by fine of not to exceed $500 or im-

prisonment not to exceed six months, or both.

ISSUE OF SECURITIES AND SINKING FUND

Sxc. 210. (a) The Secretary of the Treasury is

authorized to borrow, from time to time, under the

Second Liberty Bond Act, as amended, such

amounts as may be necessary to meet the expendi-

tures authorized by this Act, or to refund any obli-

gations, previously issued under this section, and to —

iggue therefor bonds; notes, certificates of indebted-

ness, or Treasury bills of the United States. |

(b) For each fiscal year beginning with the fiscal

year 1934 there is ee appropriated, in — !

ep Re We nage poste RARER Aa eS PIRES SRE RES

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. 14 .

to and as of, the cumulative sinking fund pro-

vided by ecen 8 the Victory Liberty Loan Act, |

" . as amended, oubof any money ithe Treasury not .

otherwise appropriated, for the purpose of such

fund, an amount equal to 214"per gentum of the

— amount of the expenditures made out.

of appropriations made or authorized under this —

_ Act as determined by the Secretary -of- the

> Treasury. | =

| “REEMPLOYMBNT AND RELIVE TAXES

Si. 211. (a) Effective as of the day following

the date of the enactment of this Act, section 617

(a) of the Revenue Act of 1932 is amended by

striking out ‘‘1 cent’’ and inserting in lieu thereof ~

“% centa.”’ :

- (®) Effective as of the day following the date of

the enactment of. this- Act, section 617 (c) (2)

of such Act is amended by adding. at the end.

thereof a new sentence to read as follows: ‘‘As

used in this paragraph the term ‘benzol’ does not’

include benzol sold for use otherwise than as a fuel

for the propulsion of motor vehicles, fnotor boats, —

or airplanes, and otherwise than in the manufac. |

ture or production of such fuel.” ,

Seo. 212. Titles IV and V of the Revenue Act of

_ 1982 are amended by striking out ‘‘1934’’ wherever

“appearing therein and by inserting in lieu thereof

. *1935"". Section 761 of the Revenue Act of 19382

is further amended by striking out “and on July

1, 1938” and inserting in lieu thereof ‘‘and on

July 1, 1933, and on July 1, 1934,”.

. ge. 213. (a) There is hereby imposed upon the

iene (required to be included in

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the gross if@come of the recipient under the pro-

visions of the Revenue Act of 1932) by any person

other than a domestic corporation, an excise tax

equal to 5 per centum of the amount thereof,

tax to be deducted and withheld from such divi-

_ dends by the payor corporation. The tax imposed

by this’section shall not apply to dividends declared

pefore the date of the enactment of this Act.

(b) Every corpcration required to deduct and

withhold any tax under this section shall, on or be-

- fore the last day of ihe month following the pay-

¢. ment of the dividend, make return thereof and pay

/ the tax to the collector of the district in which its

5 principal place of business is located, or, if it Bas

no principal place of business in the Unit: 1 States,

/ to the collector at Baltimore, Maryland.

liable for such tax and is- hereby indemnified

‘ against the claims and demands of any person for

the amount of any. payment made in accordance

with the provigions . of this section.

(d) The provisions of sections 115, 771 to 774,

inclusive, and 1111 of the Revenue Act of 1932 shall

be applicable with respect to the tax imposed by _

this section.

‘(e) The taxes imposed by this section shall not

_ apply to the dividends of any corporation ®numer-

ated in section 103 of the Revenue Act of 1932.

SEC. 214. Section 104 of the Revenue Act of 1932 gs ‘

is amended by striking out the words ‘the surtax”’ et

wherever occurring in such section and inserting

fi Jieu thereof ‘‘any internal-revenue tax.” The

heading of such section is amended by striking out -

“surtaxes”’ and inserting in lieu thereof ‘‘internal-

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-revenue taxes.’’ Secton 13 (c) of such Act is

amended by striking out ‘‘surtax’’ and inserting in

lieu thereof ‘‘internal-revenue tazx.’’

. Suc. 215.4 a) For each year ending June 30 there

is hereby imposed upon every domestic corpora-

; tion with respect to carrying on or doing business

« - for any part of such year’gn excise tax of ¢1 for

each $1,000 of the adjusted declared value of its ~

_ capital stock. |

(b) For each year ending June 30 there is hereby

imposed upon every foreign corporation with re-

spect to carrying on or doing business in the United -

States fer any part of such year an excise tax

equivalent to $1 for each $1,000 of the adjusted de-

clared value of capital employed i in the transaction

of its business in the United States. -

cea’ Say (c) ‘The taxes imposed by this seétion shall not

apply— —

' (1) te any co ration enumerated i in sec-

tien 108 of venue Act of 1932;

(2) to any company subject to

a = eaetall Sor or 204 of such

/. (3) to any domestic corporation in respect

of the year ending June 30, 1933, if it did not

carry on or do b g a part of the

from the date of the enactment of

this Act to June 30, 1935, both dates inclu- - “

aXe) to any he foreign corporation i in respect

of the year ending June 30, 1933, if it did. ~

not carry on or do business in the United + 3

States during a part of the period from the

date of the enactment of this Act to June

30, 1933, both dates inclusive. ad

- (d) Every corporation liable for tax under this -

section shall make a return under. oath within one _

. ° ->

4 17

month after the close of. the year with respect to

which such tax is impobed to the collector for the

district in which is located its principal place of

+usiness or, if it has no principal place of business

_ in the United States, then to the collector at Balti-

more, Maryland..-.Such return shall cortain such

information and be made in such thanner as the

Commissioner with the approval of the Secretary

may by regulations prescribe. The tax shall, with-.

out assessment by the Commissioner or notice from

the collector, be due and payable to the. collector

before the expiration of the period for filing the

return.’ If ¢he tax is not paid when due, there shay

be added as part of the tax.interest at the rate of 1

- per centum a month from the time when the tax

became due until paid. All provisions of law (in-

cluding penalties) applicable in réspect.of the

taxes imposed by section 600 of the Revenue Act

of 1926 shall, in so far as not inconsistent with

this section, be applicable in respect of the taxes’.

imposed by this section. The Commissioner may

extend the time for making the returns and paying . |

the taxes imposed by this section, under such rules

and regulations as he ma prescribe with the‘ ap-

proval of the Secretary, but no such extension shall

be for mote than sixty days.

(e) Returns required to be filed for the purpose ©

- of the tax-imposed by this section shall be open to

inspection in the same manner, to the same extent,

and subject to the same provisions of law, includ-

ing penalties, as returns made under title IT of the .

Revenue. Act of 1926.

(f) For the fitst year.ending June 30 in respect i

of-which a tax is imposed by this section upon any

: corporation, the adjusted declared value shall be

Fis

the value, as declared by the corporation in its first

return under this =*etion (which declaration of ©

value cannot be amended ), as of the close of its last

' income-tax taxable year ending at or prior to the

close of the year for which the tax is imposed by

this section (or as of the date of organization in

the case of a corporation ltaving no. income-tax

taxable year ending at or prior to the close of the

year for which the tax-is imposed by this section).

For any subsequent year ending June 30, the ad-*

justed declared value in the case of a domncatio cor

- poration shall be the original declared value plug, §

(1) the cash and.,fair market value of property ~

paid in for stocix or shares, (2) paid-in surplus and

contributions to capital, and (3) earnings and

profits, and minus (A) the value of property dis-

tributed*in liquidation to sharebelders, (B) dis- ~

.tributions of earnings and profits, and (C) deficits,

whether operating or nonoperating; each adjust-

ment being made for the period from the date as

of which the original declared value ‘was declared

to the close of its last income-tax taxable year end-

ing at or a to the close of the year for which

the tax is imposed by this section. For any subse--

quent year ending June 30, the adjusted declared

value in the case of a foreign corporation shall he

' the original declared value adjusted, in accordance

with regulations prescribed by the Commissioner -

with the approval of the Secretary, to reflect in-“

creases or decreases. (for the period specified in

the preceding sentence) in the capital employed in

the transaction of,its business in the United States.

' . (g) The terms used in this section shall have the

‘same meaning as when used in the Revenue Act of

1932. ' :

Sec. 216. (a) " There is hereby imposed upon the. ~

net income of every corporation, for each income-

tax taxable year ending after the close of the first

year in respect of which it is taxable under section

915, an. excess-profits tax equivalent to 5 per

eentum of such portion of its net income for such

income-tax taxable year as is in excess of 121% per

centum of the adjusted declared value of its cap-

ital stock (or in the case of a foreign corporation

the adjusted declared value of capital employed’

' jn the transaction of its business in the United

States) as of the close of the preceding income-tax

taxable year (or as of the date of organization if

it had no preceding income-tax taxable year) de-

termingsé as provided in section 215. .The terms

used in this section shall have the same meaning

as when used in the Revenue Act of 1932. . )

(b) The tax imposed by this section shall be as-

sessed, collected, and paid in the same manner, and

shall be subject to the same provisions of law (in-

cluding penalties) as the taxes imposed by —_: I

of the Revenue Act of 1932.. ie

Sec. 217. (a) The President shall proclaim the |

date of— -<

| (1) the.close of the first fiscal year ending

. June 30 of any year after the year 1933, dur-

. ing which the total receipts of the United

States (excluding. public-debt receipts) ex- —

ceed its total expenditures (excluding

public-debt expenditures other than those

chargeable against such receipts), or

(2) the repeal of the eighteenth amend-

gee to the Constitution,

whichever is the earlier.

(b) Effective as of the 1st day of the calendar.

year following the: date so proclaimed section

EET

617 (a) of the Revenue Act of 1932, as amended

is amended by striking out ‘‘114 cents’’ and insert-

ing in lieu thereof ‘‘1 cent.”’

“(e) The tax on dividends imposed by section 213

shall not apply to any dividends declared on or

after the Ist day of the calendar year ee the

date so proclaimed.

/fa) The capital-stock tax imposed _ section

215 shall not apply to any taxpayer in respect of

any year beginning on or after the 1st day of J vad

following the date so proclaimed. |

_ (e) The excess-profits tax imposed by sisitiia

216 shall not apply to any taxpayer in respect of

_ any taxable year after its taxable year during

which the date so proclaimed éccurs.

SEc. 218. (a) Effective as of January 1, 1933,

sections 117, 23 (i), 169, 187, and 205 of the Rev-

_ enue Act of 1932 are repealed.

(b) Effective as of January 1, 1933, section

23 (r) (2) of the Revenue Act of 1932 és repealed.

23 (r) (3) of the Revenue Act of 1932 is amended ~ |

by striking out all after the word “Territory” and

' inserting a period.

(d} Effective as of January 1, 1933, section

182 (a) of the Revenue Act of 1932 is amended |

by inserting at the end thereof a new sentence as

follows: ‘‘No part of ‘any. loss disallowed to a

rtnership as a deduction by section 23 (r) shall

allowed as a deduction to a member of such |

partnership in computing net income.’’ * |

(e) Effective as of January 1, 1933, section 141 —

striking out ‘‘except that for the taxevle years 1932

and 1933 there shall be added to the rate of tax pre-

ae)

scribed by sections 13 (a), 201 (b), and 204 (a), a‘

rate of three fourths of 1 per centum”’ and insert- .

ing in lieu thereof the following: ‘‘except that. for

the taxable years 1932 and 1933 there shall be added

‘to the rate of tax prescribed by sections 13 (a),

201 (b), and 204 (a) a rate of three fourths of 1

per centum and except that for the taxable years

_ 1934 and 1935 there shall be added to the rate of tax

prescribed by sections 13 (a), 201 (b);and 204 (a)

a rate of 1 per centum.’’

(£) No interest shal] be assessed @r collected for

any period prior to September 15, 1933, upon such

portion of any amount determined as a deficiency

in income taxes as is attributable solely to the

amendments made to the Movenne Act of 1932 by

. this section.

(g) In eases where the effect of this section is to

require for a taxable year ending prior to June 30, |

1933, the making of an income-tax return not other-

wise required by law, the time for making the re-

turn and paying the tax shall be the same as if the

return was for a fiscal year ending June 30, 1933.

(h) Section 55 of the Revenue Act of 1932 is

amended by inserting before the period at the end

thereof a semicolon and the following: “and all

returns made under this Act after the date of en-

_ actment of the National Industrial Recovery Act

shall constitute public records and shall be open to

public examination and inspection to such extent

as shall be authorized in rules and regulations pro-

mulgated by the President.’’ © |

. 8Ec. 219. Section 500 (a) (1) of the. Revenue

Act of 1926, ‘as amended, is amended by striking

out the period at the end of the second sentence

thereof and inserting i in lieu thereof a comma and

ee 2:

pcr nd Tet aie toy Wht me obo Ne me — ad

the following: ‘‘except that no tax shall be imposed

in the case of persons admitted free to any spoken

play (not a mechanical reprodrction), whether or

not set to musie- or with musical parts or accom-

_ paniments, which is a consecutive narrative inter- -

preted by a single set of characters, all necessary ©

to the development of the plot, in two or more acts,

. the performance consuming more than 1 hour and

45 minutes ss time.’’

APPROPRIATION

Sec. 220. For the purposes of this Act, there is

hereby authorized to be appropriated, out of any

money in the Treasury not otherwise appropri-

ated, the sum of $3,300,000,000. The President is

authorized to allocate so much of said sum, not in . -

excess of $100,000, 000, as he may determine to be

necessary for expenditures in carrying out the

Agricultural Adjustment Act and the purposes,

powers, and functions heretofore and hereafter

conferred upon the Fatm Credit Administration. .

Sgc. 221. Section 7 of the Agricultural Adjust-

ment Act, approved May 12, 1933, is amended. by

striking out all of its present terms and provisions _ |

and substituting therefor the following:

‘‘Sec. 7. The Secretary shall sell the cotton held

by him, at his discretion, but subject to the fore- —

- going provisions: Provided, That he shall dispose

of all cotton held by him by March 1, 1936:

Provided further, That notwithstanding the pro-

visions of section 6, the Secretary shall have au-

. thority to enter into option contracts with produc-

ers of cotton to-sell to the producers such cotton . |

_ held by him, in such amounts and at such prices and

upon such terms and conditions as the Secretary

may deem advisable, in combination with rental or

oe at a a en ea TE ee Se

"benefit. payments provided for i in part 2 of this

title.

Sas steitnatemdinn any provisions of existing

law, the Secretary of Agriculture may in the ad-

ministration of the Agricultural Adjustment Act

make public such information as he deems neces-

eo to mesial the purposes of such

Act.’

TittE III—AMENDMENTS TO EMERGENCY RELIEF

AND. ‘CONSTRUCTION ACT AND MISCELLANEOUS

. PROVISIONS

Section 301. After the _— of ten days

after the date upon which the Administrator has

qualified and taken office, (1) no application shall

be approved by the Reconstruction Finance Oor- -

_ poration under the provisions of subsection: (a) of

— section 201 of the Emergency Relief and Corfstruc-

tion Act of 1932, as amended, and (2) the Admin-

istrator shall have acéess to all applications, files,

and records of the Reconstruction Finance Cor-

_ - poration ; may issué funds toa borrower under such

_ administration of .funds over such subsection:

Provided, That the Reconstruction Finance Cor-

poration may issue funds to a borrower under such

subsection (a) prior to January 23, 1939, under the

terms of any agreement or any commitment to bid

upon or purchase bonds entered into with such

__ borrower pursuant to an application approved

prior to the date of termination, under this sec-

tion, of the power of the Reconstruction Finance

Corporation to approve applications.

DECREASE OF B0RROWING POWER OF RECONSTRUCTION ©

FINANCE CORPORATION

Sec. 302. The amount of notes, debentures,

— or r other such obligations which the Recon-

+ .

eee heen PEt g

a b ~ ° > Se en ge me er Oa

—_——— =~ - _ ° _

WR nn meet me

struction Finance Corporation is authorized and

empowered under section 9 of the Reconstruction

Finance Corporation Act, as amended, to have

outstanding at any one time is decreased by .

$400,000,000.

SEPARABILITY CLAUSE

‘Sec. 303. If any provision of this Act, or the

application thereof to any person or circumstances,

is held invalid, the remainder of the Act, and the:

application of such provision to other persons or

circumstances, shall not be affected thereby.

SHORT TITLE

Seo. 304. This Act may be cited as the “Na- _

tional Industrial Recovery Act.”’

Approved, June 16, 1933, 11: 55 a. m.

eee Tee

EMERGENCY APPROPRIATION: ACT, Fuca Year 1935

——(e, 648, 48 Star. 1021, 1055)

AN ACT Making. appropriations to supply deficiencies in certain

tions for the fiscal year ending June 30, 1934, and prior

fiscal years, to provide supplemental general and emergency appro-

priations for the fiscal years ending June 90, 1994 and June 5d,

_ 1985, and for other purposes.

Be it enacted by the Serate and House of Repre-

sentatives of the United States of America in Con-

gress assembled, That the following sums are ap-

propriated, out of any money in the Treasury not

otherwise appropriated, to supply deficiencies in

certain appropriations for the fiscal year ending

June 30, 1934, and prior fiscal years, to provide

supplemental general and emergency appropria-

tions for the fiscal years ending June 30, 1934, and

June 30, 1935, and for other purposes, namely:

: —

ne ai ; —

25 ,

TrTLE [I—EMERGENCY APPROPRIATIONS

EXECUTIVE

For an additional amount for carrying out the

purposes of the Act entitled ‘“‘An-Act for the relief

of unemployment through the performance of use-_

ful public work, and for other purposes,’ approyed

March 31, 1933 (48 Stat. 22) ; the Federal Emer-

gency Relief Act of 1933, approved May 12, 1933

(48 Stat. 55) ; the Tennessee Valley Authority Act

of 1933, approved May 18, 1933 (48 Stat..58) ; and

the National Industrial Recovery Act, approved

“June 16, 1933 (48 Stat. 195); and including

$325,000 for an addition to the Executive Office

Building and for the furnishings and equipment

thereof ; $899,675,000, to be allocated by the Presi-

dent for further carrying out the purposes of the

aforesaid Acts and to remain available until June

30, 1935: Provided, That not exceeding $500,0™,000

in the aggregate of any savings or unobligated bal- .

ances in funds of the Reconstruction Finance Cor-

poration may, in the discretion of the President, be

transferred and applied to the purposes of the Fed-

- eral Emergency Relief Act of 1933 and/or title I

of the National Industrial Recovery Act, and any

unobligated balances in appropriations (including

allocations of appropriations). of the Federal

Emergency Administration of Public Works may,

in the discretion of the President, be transferred |

and applied to the purposes of such Federal Emer-

gency Relief Act of 1933: Provided further, That

' the amounts to be made available under the author-

ity of this paragraph for public-works under the

National Industrial Recovery Act shall not exceed .

in the aggregate $500,000,000.

Deattes 2 2 — < ‘

Pye tora wiry Siti gM =, : ; a ‘ RS

RSE Pte oy er Ss g ‘ : .

pa LOPE Se Ee « af * ~

. .

. @ F |

26 eae ee

EMERGENCY RELIEF ?

oe * * *# +.

The .Reconstruction Finance Corporation is

hereby authorized to purchase marketable securi-

ties, satisfactory to said Corporation, acquired or

- to be acquired ‘by, the Federal Emergency Admin-

istration of Public Works, and any sums paid for

such securities shall be available to said Federal. .

Emergency Administration of Public: Works for

the making of additional loans (but not grants)

under the provisions of title II of the National In-

dustrial Recovery Act: Provided, That the amount

that the Reconstruction Finance Corporation may

ahave invested at. any one time in such securities

shall not exceed $250,000,000. The amount of notes,

debentures, and bonds or other such obligations

which the Reconstruction Finance Corporation is

authorized and empowered to have outstanding at .

any one time pursuant to section 9 of the Recon-

, _ struction Finance Corporation Act, as amended, is

: hereby increased by the sums necessary for these

aan purchases, not to exceed $250, 000,000.

EMERGENCY RELIEF’ heeinbearcon Act oF 1935 _

(c. 48, 49 Stat. 115, 119) eek

JOINT RESOLUTION Making iuprenstations for relief purposes.

8 ME SE WE IT ALTE S PE

Resolved by the Senate and House of Represent-

atives of the United States of Americain Congres. »

assembled, That. in order to provide relief, work

relief and to increase employment by providing

for useful projects, there is hgreby appropriated,

out of any money in the Treasury not otherwise .

appropriated, to be used in the discretion and.

under the directign of the President, to be imme-

digtely available and to remain available until

June 30, 1937, the sum of $4,000;000,000, together

with the separate funds established for particular

areas by proclamation of the President lant

to section 15 (f) of the Agricultural Adjustment

Act (but any amounts thereof “shall be available

for use only for the area for which the fund was

established); not exceeding $500,000,000 in the

agerégate of any savings or unexpended balances

Gn funds of the Reconstruction Finance Corpora-

tion; and not exceeding a total of $380,900,000 of

_ such unexpended balances as the President may de-

termine are not required for the purposes for

which authorized, of the following appropriations,

namely: The appropriation of $3,300,000,000 for

national industrial recovery éontained in the

Fourth Deficiency Act, fiscal year 1933, approved

June 16, 1933 (48 Stat. 274) ; the appropriation of

$950,000,000 fer emergency relief and civil works

contained in the Act approved February 15, 1934

(48 Stat. 351); the approprigtion of $899,675,000

for emergency relief and public works, and the ap-

propriation of $525,000,000 to meet the emergency

and necessity for relief in stricken agricultural

- areas, contained in the Emergency Appropriation

Act, fiscal year 1985, approved June 19, 1934 (48

Stat. 1055) ; and any remainder of the unobligated

moneys referred to, in section 4 of the Act approved

March 31, 19330(48 Stat. 22): Provided, That ex-

cept as to such part of the appropriation made np

herein as the President may deem necessary for

continuing relief as authorized under the Federal

Emergency Relief Act of 1933, as amended, or for

restoring to the Federal Emergency Administra-

@ eow ow .

tion of Public Works any vinta after De-

cembtr. 28, 1934, were, by order of the President

impounded or transferred to the Federal Emer-

gency Relief Administration from appropriations

heretofore made available to such Federal Emer-

gency Administration of Public Works (which |

restoration is hereby authorized), this appropria-

tion shall be ava‘lable for the following classes of

projeots, and the amounts to be used for each class

shall not, except as hereinafter provided, exceed

the respective amounts stated, namely: (a) High-

ways, roads, streets, and grade-crossing elimina-

tion, $800,000,000 ; (b) rural rehabilitation and re-

lief in stricken agricultural areas, and water con-

servation, trans-mountain water diversion and

irrigation and reclamation, $500,000,000 ; (ec) rural

electrification, $100,000,000; (d) housing, $450,-

000,000; (e) assistance for educational, profes-

sional and clerical persons, $300,000,000 ; (£) Civil-

ian Conservation ‘Corps, $600,000,000 ; (9) loans or

grants, or both, for projects of States, Territories, “

Possessions, including subdivisions and agencies —

thereof, municipalities, and the District “of

lumbia, and self-liquidating projects of public

bodies thereof, where, in the determingston of the ©

President, not less than twenty-fwe centwm of

the loan or the grant, or the-aggregate thereof, ts

to be expended for work under each particular

project, $900,000,000; (h) sanitation, prevention

of soil erosion, prevention of stream pollution, sea

coast erosion, reforestation, forestation, flood con-

trol, rivers and harbors and miscellaneous projects,

$350,000,000 : Provided further, That not to exceed ©

20 per centum of the amount herein appropriated

may be used by the President to increase ——

“

‘

29 om

more of the foregoing limitations if he finds it neces-

sary to do so in order to effectuate the purpose of

—. this joint resolution: Provided further, That no

part of the appropriation made by this joint resolu-

tion sffall be expended for munitions, warships, or

military or naval matériel ; but this proviso shall not

be construed to prevent the use of such appropria-

tion for néw buildings, reconstruction of buildings

and other improvements in mi tary or naval res-

ervations, posts, forts, camps, cemeteries, or forti-

fied areas, or for projeets for nonmilitary or non-

_. naval purposes in such places.

Except as hereinafter provided, all sums allo-

eated fromthe appropriation made herein for the

construcjfon of public highways and other related —

projecté (excépt within or adjacent to national

forests, national parks, national parkways, or .

other Federal reservations) shall be apportioned P.

by the Secretary of Agriculture in the manner pro-

vided by section 204 (b) of the National Industrial

Recovery Act for expenditure by the State high-

way departments under the provisions of the Fed-

eral Highway Act of November 9, 1921, as

amended and supplemented, and subject to the

provisions of section 1 of the Act of June 18, 1934

(48 Stat. 993): Provided, That any amounts allo-

cated from the appropriation made herein for the

elimination of existing hazards to life at railroad

~ grade crossings, including the separation or pro-

tection of grades at crossings, the reconstrudtion .

of existing railroad grade crossing structures, and

the relogation of highways. to eliminate grade

crossingS, shall be apportioned by the Secretary of

Agriculture to the several States (including the

_ Territory of Hawaii and the District of Colum-

z : ns : 5 ee 3 <n -

3 | 43 |

Ba)

bia), one-half on population as shown by the latest

_ decennial census, One-fourth on the mileage of the

Federal-aid highway system as determined by the

Sceretary of Agficulture, and one-fourth on the

railroad mileage as determined by the Interstate

Commerce Commission, to be expended by the

State highway departments under the provisions

. -of the Federal Highway Act of November 9, 1921,

as amended , and supplemented, and subject to the

provisions of section 1 of such Act of June 18,

-~1934 (48 Stat. 993) ; but no part of:the funds ap-

~ portioned to any State or Territory under this

joint resolution, for public highways and grade

crossings need be matched by the State or Terri-

tory: And. provided further; That the President

may also allot funds made available by this joint

resolution for the construction; repair, ard im-

provement of public highways in Alaska, Puerto

Rico, and‘ the Virgin Islands, and money allocated —

under this joint resolution to relief agencies may

be Contes by such agencies for the construction

and\improvement of roads and streets: Provided,

. however, That the expenditure of funds from. the

appropriation made herein for the construction of .

public highways and other related projects shall be

subject to such rules and. regulations as the Presi-

--dént may prese ribetor carrying out this paragraph

and preference in ‘the employment of labor shall —

’ be given (except in executive, administrative, su- |

pervisory, and, highly’ skilled positions) to persons |

receiving relief, where they are qualified, and the

President is hereby. authorized to predetermine for

each State the hours of work and the rates of wages -

to be paid to skiHed, intermediate, and unskilled

31 #4 J

laher engaged-jn such construction therein: Pro-

vided further, That rivers and harbors projects,

reclamation projects (except the drilling of: wells,

development of springs and subsurface waters),

and public buildings projects undertaken pursuant

to the provisions of this joint resolution shall be |

carried out under the direction of the respective

permanent Government departments or agencies

now having jurisdiction of similar projects.

Funds made available by this joint resolution

may be used, in the discretion of the President, for

the purpose of making loans to finance, in whole

or in part, the purchase of farm lands and neces-

sary equipment by farmers, farm: tenants, crop-

pers, or farm laborers. Such loans shall be made

on such terms as the President shall prescribe

and shall be repaid in équal annual installments,

or in such’ other manner as the President may

determine.

Funds made available by this joint resolution

-may be used, in tlie discretion of the ‘President for

the administration of the Agricultural Adjustment

Act, as amended, during the period of twelve

months after the effective date of this joint reso-

‘ution.

Sec. 2. The appropriation made herein shall be

available for use only in the United States and its |

Territories and possessions. The provisions of the

Act.of February 15, 1934 (48 Stat. 351), relating

to disability or death compensation and benefit

shall apply. to those persons receiving from tHe

appropriation madé herein, for services rendered

as employees of the United States, security pay-

ments in accordance with a established by —

é 27949—37——-3

the President: Provided, That so much of the sum

“herein appropriated as the United States Em-

‘ployees’ Compensation Commission, with the ap-

proval of the President, estimates and certifies to

the Secretary of the Treasury will be necessary for

the payment of such compensation and adminis-

trative expenses shall be set aside in a special fund

to be administered by the Commission for. such

purposes; and after June 30, 1936, such special

fund shall be available for these purposes annu-

ally in such amounts as may be specified therefor

in the annual appropriation Acts. The provisions

of section 3709 of the Revised Statutes (U.S. C

‘title 41, sec. 5) shall not apply to any purchase

made or service procured in carrying out the pro-

visions of this joint resolution when the aggregate

amount involved is less than $300.

Sec. 3. In carrying out the provisions of this

joint resolution the President may (a) authorize

expenditures for contract stenographic reporting

services; supplies and equipment; purchase and

exchange of law books, books of reference, direc-

tories, periodicals, newspapers and press clip-

pings; travel expenses, including the expense of.

attendance at meetings when specifically author-

izéd; rental at the seat of government and else-

where; purchase, operation; and maintenance

of motor-propelled passenger-carrying vehicles;

printing and binding; and such other expenses as

he may determine necessary to the accomplish-

ment of the objectives of this joint resolution; and

(b) accept and utilize such voluntary and uncom-

pensated services, appoint, without regard to the

provisions of the civil-service laws, such officers

eee ee eco rrr

and employees, and utilize such Federa officers

and employees, and, with the consent of the State,

such State and local officers‘and employees, as may

be necessary, prescribe their authorities, duties, _ . |

-- responsibilities, and tenure, and, without regard

to the Classification Act of 1923, as amended, fix

the compensation of any officers and employees so

appointed.. © E

Any Administrator or other officer, or the mem-

bers of any central board, or other agency, named

to have general supervision at the seat of Govern-

ment over the program and work contemplated —

under the appropriation made in section 1 of this

joint resolution and receiving a salary of $5,000 or

more per annum from such appropriation, and any

State or regional administrator receiving a salary

of $5,000 or more per annum from such appropria-

tion (except persons now serving as such under

other law), shall be appointed by the President,

by and with the advice and consent of the Senate:

Provided, That the provisions of section 1761 of

the Revised Statutes shall not apply to any such

appointee and the salary of any person so ap-

pointed shali not be increased for a period of six’

months after confirmation. |

Sec. 4. In carrying out the provisions of this

joint resolution the President is authorized to es-

tablish and prescribe the duties and functions of

necessary agencies within the Government.

Src. 5. In carrying out the provisions of this

joint resolution the President is authorized

(within the limits of the appropriation made in

section 1) to acquire, by purchase or by the power

of eminent domain, any real property or any in-

‘terest therein, and improve, dévelop, grant, sell,

lease (with or without the privilege of pur-

chasing), or otherwise dispose of any such prop-

erty or interest therein.

Src. 6. The President is authorized to prescribe

such rules and regulations as may be necessary to

carry out this joint resolution, and any willful vio-

lation of any such rule or regulation shall be pun-

ishable by fine of not to exceed $1,000. -

Src. 7. The President shall require to be paid

such rates of, pay for all persons engagéd upon

any project financed in whole or in part, through

loans or otherwise, by funds appropriated by this

joint resolution, as will-in the discretion of the

_ President accomplish the purposes of this joint

resolution, and not affect adversely or otherwise

tend to decrease the going rates of wages paid for

work of a similar nature.

The President may fix different, rates of wages

for various types of work on any project, which

rates need not be uniform throughout the United

States: Provided, however, That whenever per-

manent buildings for the use of any department of -

the Government of the United States, or the Dis-

trict of Columbia, are to be constructed by funds —

appropriated by this joint resolution, the provi-

sions of the Act of March 3, 1931 (U.S. C., Supp.

VII, title 40, sec. 276a), shall apply but the. rates

of wages shall be determined in advance of any

bidding thereon.

Sec. 8. Whenever practicable i in the carrying out

of the provisions of this joint resolution, full ad- _

vantage shall be taken of. the facilities of private

enterprise.

Sec..9. Any person who aenaler and with in-

tent to defraud the United States makes any false

statement in connection with any application for

any project, employment, or relief aid under the —

provisions of this joint resolution, or diverts, or

attempts to divert, or assists in diverting for the

benefit of any person or persons not entitled there-

to, any moneys appropriated by this joint resolu-

tion, or any services or real or persgnal property

acquired thereunder, or who knowingly, by means

of any fraud, force, threat, intimidation, or boy-

cott, deprives any person of any of the benefits to

which he may be entitled under the provisions of

this joint resolution, or attempts so to do, or as- .

sists in so doing, shall be deemed guilty of a mis-

demeanor and shall be ‘fined not more than $2,000

‘ or imprisoned not more than one year, or both.

Sec. 10. Until June 30, 1936, or such earlier date

as the President by proclamation may fix, the Fed- -

eral Emergency Relief Act of 1933, as amended, is

continued in full force and effect.

- Src. 11. No part of the funds herein appro-

_priated shall be expended for the administrative

expenses of any department, bureau, board, com-

mission, or independent agency of the Government

if such administrative expenses are ordinarily

financed from annual appropriations, unless addi-

tional work js imposed thereupon by reason of this

joint resolution.

Sec. 12. The Federal Emergency. Administration

of Public Works established under tttle II of the

National Industrial Recovery Act ts hereby con-

tinued until June 30, 1937, and ts authorized to

perform such of its functions under said Act and

such functions under this joint resolution as may

be authorized by the President. All sums appro-

priated to carry out the purposes of said Act shall

be available until June 30, 1937. The President is

authorized to sell any securities acquired under

said Act or under this joint resolution, and all

moneys realized from such sales shall be available

to the President, in addition to the sums heretofore

appropriated under thts joint resolution, for the

making of. further loans under said Act or under

then - ent resolution.

Sec. 13. (a) The acquisition of articles, materials,

and supplies for the public use, with funds appro-

priated by this joint resolution, shall be subject to

the provisions of section 2 of title III of the Treas-

ury and Post Office Appropriation Act, fiscal year

1934; and all contracts let pursuant to the provi-

sions of this joint resolution shall be subject to the ©

provisions of section 3 of title III of such Act.

(b) Any allocation, grant, or other distribution

of funds for any project, Federal or non-Federal,

from the appropriation made by this joint resolu-

tion, shall contain stipulations which will provide

for the application of title III of such Act to the

acquisition of articles, materials, and supplies ics

use in carrying out such project.

Sec. 14. The authority of the President awe the

provisions of the Act entitled ‘“‘An Act for the

relief of unemployment through the performance |

stg

of useful public work, and for .other purposes”’,

approved March 31; 1933, as amended, is hereby

continued to and including March 31, 1937. _

. Sec. 15. A report of the-operations under this.

joint resolution shall be submitted to Congress be-

fore the 10th day of January in each of the next

_ three regular sessions of Congress, which report.

shall include a statement of the expenditures made

and obligations incurred, by classes and amounts.

Sec. 16. This joint resolution may be cited as the

‘‘Emergency Relief Appropriation Act of 1935.”

Approved, Apri: 8, 1935, 4 p. m.

First DEFICIENCY APPROPRIATION Act, Fiscal

Year 1936 (c. 689, 49 Srar. 1597, 1608, 1609)

AN ACT Making appropriations to supply deficiencies in certain ap-

propriations for the fiscal year ending June 30, 1936, and prior

fiscal years, to provide supplemental appropriations for the fiscal

years ending June 30, 1936, and June 30, 1937, and for other .

purposes aoe

Be it enacted by the Senate and House of Repre-

sentatives of the United States of America tn Con-

gress assembled, That the following sums are ap-

propriated, out of any money in the Treasury not

otherwise appropriated, to supply deficiencies in

certain appropriations for the fiscal year ending

June 30, 1936, and prior fiscal years, to provide

supplemental appropriations for the fiscal years

ending June 30, 1936, and June 30, 1937, and for

other purposes, namely : . ,

z 2 2 = =

- Trrte I]—Revier anp Work RELIEF

» * - * | * *

In order to increase employment by providing

for useful public works projects of the kind and >

eharacter for which the Federal Emergency Ad- .

ministrator of Public Works (hereinafter called ©

the Administrator) has heretofore made loans or

grants pursuant to Title II of the National Indus-

trial Recovery Act or the Emergency Relief Appro-

priation Act of 1935, the Administrator may, upon

- the direction of the President, use not to exceed

$300,000,000 from funds on hand or to be received

from the sale of securities, for the making of

grants, to aid in the financing of such projects:

Provided, That no part of the sum made available

by this paragraph shall be granted for any project

unless, in the determination of the Administrator,

the completion thereof can be substantially aecom-

plished prior to July 1, 1938, and adequate provi-

sion .has been made or is assured for financing such

part of the entire cost thereof as is not to be sup-

plied through the Federal Emergency Administra-

tion of Public Works: Provided further, That this

limitation upon time shall not apply to any project

enjoined in any F'edéral or State court: Provided.

further, That in no case shall the amount of the

grant exceed forty-five per centum of the cost of the

project. Nothing herein shall be construed to in-

crease the amount of notes, bonds, debentures, and

other such obligations which the Reconstruction

Finance Corporation is authorized and empowered

under exiting law to issue and to have outstanding

at any gne time, and nothing herein shall be con-

strued to limit or curtail in any way any powers

which the Federal Emergency Administration of

Public Works or the Administrator‘is now author-

ized to exercise. :

Pusiic WorKS ADMINISTRATION ExtTENSION ACT OF

1937 (PusLic Resotution No. 47, 75rH Cona.)

* JOINT RESOLUTION Making appropriations for relief purposes

Resolved by the Senate and House of Represent-

—_atives of the United States of America in Congress

assembled, .

2 * + : * : a

’ Trriz IT

Src. 201. The Federal Emergency Administra-

tion of Public Works (herein called the “‘ Admimis-

tration’’) is hereby continued until July 1, 1989,

and until such date is hereby authorized to con-

tinue to perform all functions which it is author-

ized to perform on June 29, 1937. All provisions

of law existing on June 29, 1937, and relating to

the availability of funds for carrying out any of the

_ functions of such Administration are hereby con-

tinued until July 1, 1939, except that the date speci-

fied in the Emergency Relief Appropriation Act of

1936, prior to which, in the determination of the

Federal Emergency Administrator of Public

Works (herein called the ‘‘Administrator”’), a

project can be substantially completed is hereby

changed from ‘“‘July 1, 1938’’ to “‘July 1, 1939.”’.

xc. 202. The amount which the Reconstruction

Finance Corporation is authorized by existing law

‘to have invested at any one time in securities pur-

chased from the Administration is hereby in-

creased from $250,000,000 to $400,000,000._.

—_—

Sec. 203. The amount of funds which the Ad-

ministrator, upon direction of the President, is

- authorized to use for grants from moneys realized

from the sale of securities is hereby increased from

$300,000,000 to $359,000,000; and after the date of —

the enactment of this joint resolution no allotment

shall be made by the Administrator for any project

the application for which has not been approved

‘by the examining divisions of the Administration

prior to such date.

Sec. 204. The paragraph in the Tedepentent

Offices Appropriation Act, 1938, under the caption

‘Federal Emergency Administration of Public.

Works’”’ is hereby amended by (a) striking out the

words ‘‘in connection with the liquidation”’ and (b)

striking out the sum of ‘‘$10,000,000”’ and insert-

ing in lieu thereof the sum of ‘‘$15,000,000.” ©

Sec. 205. The funds available to the Adminis-

- trator for the making of loans or grants~-or loans

and grants may be used for projects (in addition

to other purposes for which funds may be~use 1)

of the following classes, in amounts not to exeecd

the sums specified for each such class: (a) For

school projects (other than those included in sub-

divisions (b) and (c) of this section) to replace,

eliminate, or ameliorate existing school facilities

or conditions which, in the determination of the

Administrator, are hazardous to the life, safety,

or health of school children, $60,000,000 for grants

and $11,000,000 for loans; (b) for projects which

have been authorized, or for the financing of which

bonds or other ‘obligations have been authorized,

at elections held prior to the date of enactment of

this joint resolution, or for projects for which an

authority « or board constituting an independent

‘value: Provided, ‘That an allo

~eorporation without taxing power has ian spe-

cifically created by a State legislature prior to such

date, $70,000,000 for. grants and $22,000,000 for

loans; (c) for projects for which appropriations

have been made by the legislatures of the States,

$15,000,000 for grants and $2,000,000 for loans;

- (d) for projects to be financed, except for the.

grant, by the issuance to contractors of tax or

assessment securities at not less than

made for any such project unless the applicant

has, in the determination of the Administrator,

made or incurred substantial expenditures or obli-

gations in contemplation of receiving an allotment,

$5,000,000 for grants; (e) for ‘projects for which

funds have been tentatively earmarked by the Ad-

ministrator but for which formal allotments have

not been made, $54,000,000 for grants and $78,-

000,000 for loans: Provided,:That the grant for

any such project ‘shall not exceed the-amount ten-

tatively earmarked as a grant for such project:

Provided further, That the amount specified for

any of the foregoing classes may be increased by

not to exceed 15 per, centum thereof by transfer-

ring an amount or amounts from any other class

or lasses in order to effectuate, the pee of °

the title.

Sec. 206. No new "applications for loans or

grants for non-Federal projects shall be received

~ or considered by the Administration after the date ~

of enactment of this joint resolution.

Src. 207. Title II of this joint. resolution may

be cited as the “Public Works Administration

Extension Act of 1937.”

Approved, June 29, 1987, 11 p. m.

ob Sachin atoning ae ga ALDOR? RA Te,

—_ ee ee nee ical Smaak a

neh Riker i nia Bouin Maal Lao LE Mia So ates La gh ao ee Fh a

<s aah acme nee A eae bee

APPENDIX B.

| EXECUTIVE ORDERS

ae EXECUTIVE RDER ai

ADMINISTRATION OF PUBLIC WORK 7

Phrsuant to the authority of “AN ACT ‘To en-

age national industrial recovery, to foster fair

petition, and to provide for the construction of

certain ‘al public works, and for other pur- . —

‘poses’’, approved June 16, 1933, and in order to

effectuate title II—Public — and Construc-

tion Projects—thereof ;

1. I hereby appoint’ Colonel Donald H. Sawyer

_to exercise temporarily the office of Federal Emer-

gency: Administrator of Public Works. —

2. I hereby appoint a Special Board for Public

: Works consisting of the following: The Secretary

- of the Interior, Chairman; the Secretary of War;

the Attorney General; the Secretary of Agricul-

ture; the Secretary of Commerce; the Secretary

of Labor ; the Director of the Budget ; Colonel

George RB. Spalding and Assistant Secretary ot

the Treasury Robert. 7

. During the ensuing 30 days the Federal Emer-—

gericy Administrator of Public Works:shall have

' authority to allot thé sum of not to exceed

$400,000,000 provided for in title II of said act for

highway building for. distribution among the

States, Territories, and the Dtstrict of Columbia,

| (42)

oa authority to allot the sum of not to exceed |

_ $238,000,000 to the Department of the Navy for the

- construction of certain. vessels, the construction

‘whereof conforms to the London Naval Treaty and

has heretofore been approved by me.

The distribution of the money herein allocated

for public rpads shall be’ oe to the approval “

the Board for Public Works. -

The Federal Emergency py earmreere of’ Public

Works is hereby authorized to employ such neces-

sary personnel on a temporary basis as may be ap-

_ proved by the Board. .

_. During the next 20 days it shall be the duty of

the Federal Emergency Administrator of Public

Works and the Board herein constituted to study

and report to me on all public-works projects

which have heretofore been submitted or * shall

hereafter be submitted. |

ie FRANKLIN D. ROOSEVELT. »

THE WHITE HovseE, |

— June 16, 1933.

" [No. 6174]

| .

EXECUTIVE ORDER

ADMINISTRATION OF PUBLIC WORK

Pursuant to the authority of “An Act'To encour-

“se national industrial recovery, to foster fair

competition, and to provide for the construction of _

certain ‘useful public works, and for other pur- |

poses’’, approved June 16, 1933, and in order to

effectuate title 1I—Public Works and Construc-

tion Projects—thereof ;

I hereby appoint Harold L. Ickes to exercise the

office of Federal Mamegmey Administrator of

Public Works. —

FRANKLIN LD. ROOSEVELT.

THE WHITE Hovss,

July 8, 1933.

[No. 6198}

_ EXECUTIVE ORDER

FEDERAL EMERGENCY .ADMINISTRATION OF PUBLIC

WORKS

. Delegation of functions and powers

Pursuant to the authority vested in me by sec-

tion 201 (a) of the National Industrial Recovery

Act, approved June 16, 1933, I hereby delegate to

the Federal Emergency Administrator of Public

Works the following functions and powers:

1. To establish such agencies, to accept and uti-

lize such voluntary and uncompensated services,

and to utilize such Federal officers and employees

and, with the consent of the State, such State and

local officers and employees as he may find neces-

sary, and to prescribe their authorities, duties,

responsibilities, and tenure.

2. Under the conditions prescribed in section 203

of said Act, to construct, finance, or aid in the con-

struction or financing of any public works project:

included in the program prepared pursuant to sec-

tion 202 of said Act; upon such terms as he shall

prescribe, to make grants to States, municipalities,

or other public bodies for the construction, repair,

or improvement of any such project; to acquire by

purchase, or by exercise of the power of eminent

: a

domain, any real or personal property in connec-

tion with the construction of any such project and

to lease any such property with or without the priv-

ilege of purchase; and to aid in the financing of

such railroad maintenance and equipment as may

be approved by the Interstate Commerce Commis- —

sion as desirable for the improvement of transpor-

tation facilities.

3, In deciding to extend any aid or grant to any

State, county, or municipality, to consider whether

action is in process or in good faith assured therein

reasonably designed to bring the ordinary current

expenditures thereof within the prudently esti-

mated revenues thereof.

4° In his discretion, and under such terms as he

may prescribe, to extend any of the benefits of

Title II of said Act to any State, county, or munic-

ipality notwithstanding any constitutional or legal

restriction or limitation on the right or power of

such State, county, or municipality to borrow

money or incur indebtedness.

B. Regulations

—_—e" to the authority vested in me by sec-

tion 209 of the National Industrial Recovery Act

I hereby prescribe the following ‘rules and regu-

lations as necessary. to carry out the purposes of

Title IT of said Act:

1. No convict labor shall be employed on any

project constructed in whole or in part undér the

provisions of Title II of said Act. No materials

manufactured or produced by convict labor shall —

be used.on any such project.

2. No contractor or subcontractor on any waite

project who is subject to a code adopted pursuant

to Title I of said Act shall permit any employee to

work in excess of the hours of labor prescribed in

said code. No other contractor or subcontractor

shall permit any employee to work more than 30

hours in any one week, except by authority of the

Administrator ; provided that working time lost

in any week because of inclement weather or

unavoidable delay may be worked witkin the suc-

ceeding 20 days; provided further, that in localities

where a sufficient amount of labor is unavailable

in the immediate vicinity of the project a maxi-

mum of 130 hours of labor in any calendar month

may be authorized by the Administrator; provided

further, that in localities so remote and inacces-

_ sible that employees must be housed in camps the

Administrator may authorize labor not to exceed.

& hours in any one day and 40 hours in any one

week.

3. No employee on any such er shall be paid

less than a just and reasonable wage which shall be

compensation sufficient to provide for the hours of.

labor as limited, a standard of living in decency and .

comfort. All such wages shall be paid in lawful °

money of the United States, in the full amount

earned by each individual at the time of payment,

not less often than once each week, and without de-

duction on account of goods purchased, rent, or

other obligations, which obligations shall be subject

to collection only by legal process.

4. Each contractor or subcontractor on any such

project shall post in a prominent and easily acces-

sible place at the site of the work a legible state-

_ ment of all wage rates paid. | |

5..Should it appear that any individual em-

ployed on any such project has been or is being

“

paid less than hereinbefore prescribed, the Admin-

istrator shall notify the employer of such individ-

ual to pay him all wages due according to the pre-

scribed rate. Upon 10 days’ default on the part ©

of such employer he shall be liable to the penalties

provided in said Act for violation of these —

tions.

6. Any violation of these rules and regulations —

may be notified by the Administator to.the Dis-

trict Attorney. of the appropriate district, who will .

- proceed, if so directed by the Attorney General, to

bring a criminal action for such violation.

FRANKLIN D. ROOSEVELT.

_ THE WuHirte Hovsg, |

August 19 1933.

[No. 6252]

. EXECUTIVE ORDER

DELEGATIN 3 CERTAIN FUNCTIONS AND POWERS TO THE

FEDERAI. EMERGENCY ADMINISTRATOR OF PUBLIC

WORKS

By virtue of and pursuant to the authority

_ vested .in me by section 201 (a) of the National

. Industrial Recovery Act, approved June 16, 1933,

48 Stat. 195 (hereinafter referred to as the

- “Act’’), I hereby delegate to. the Federal Emer-

gency | Administrator of Publie Works the follow-

ing functions and powers:

1. In his discretion, and upon such terms and

conditions as he may prescribe, to sell, assign,

transfer, and deliver all securities or any part

thereof purchased under the authority of section.

27949—37——4 ,

_-— sepoee es te

eee Cw Sa

203 of the said Act and of Title IT of the Emer-

gency Appropriation Act, fiscal year 1935, ap-

proved June 19, 1934, 48 Stat. 1021, and to apply

the proceeds as prescribed by section 203 of the

said Act and said Emergency Appropriation Act,

fiscal year 1935.

2. To alter, amend, or waive any-or all rules and

regulations set forth in Executive Order No. 6252

of August 19, 1933, and any other rule or regula-

tion promulgated by the President under the au-

thority of:section 209 of said Act, and to prescribe

pursuant to the authority of the said section 209

any other rules or regulations as are necessary to

carry out the purposes of said Act; Provided,

however, no rule or regulation the violation of

which is made punishable by fine or imprisonment

under the said section 209 shall become effective

until approved by me.

" FRANKLIN D. RooseEveELt. °

THE Ware House,

December 26, 1934.

[No. 6929]

EXECUTIVE ORDER

AUTHORIZING THE FEDERAL EMERGENCY ADMINISTRA-

TION OF PUBLIC WORKS TO CONTINUE TO PERFORM

FUNCTIONS UNDER TITLE II OF THE NATIONAL INDUS-

TRIAL RECOVERY ACT AND TO PERFORM FUNCTIONS

UNDER THE EMERGENCY 7 APPROPRIATION ACT

OF 1935

Pursuent to the aittitty vested in me vy the

Emergency Relief Appropriation Act of 1935, ap-

ES)

proved. April 8, 1935 (Public Resolution No. 11,

74th Congress), I hereby authorize the Federal

| Emergency Administration of Public Works, un-

der the Federal Emergency Administrator of Pub-

lic Works:

(a) to continue after June 16, 1935, to perform

all of the functions which it was authorized to per-

form prior to June 16, 1935, under Title II of the

National Industrial Recovery Act, approved June

16, 1933 (48 Stat. 200);

(b) subject to the rules and regulations iin

fore and hereafter prescribed by the Presideii* to

carry out the Emergency Relief Appropriation Act

of 1935, approved April 8, 1935, to perform the fol-

lowing functions under said Act:

(1) make loans or grants, or both, for projects

of states, territories, possessions, including subdi- .

visions and agencies thereof, municipalities and

the District of Columbia, and self-liquidating

projects of public bodies thereof, where, in the de-

termination of the President, not less than twenty-

five per centum of the loan or the grant, or the ag-

gregate thereof, is to be expended for work under

each particular project;

(2) carry out projects fur slum clearance or

low-cost housing, or both;

of the National Industrial Recovery Act, approved

June 16, 1933, or under the Emergency Relief

Appropriation Act of 1935, approved April 8, 1935,

alu .:.1 moneys realized from such sales shall be

available for the making of further loans under

the said Title IL -of the National Industrial Re-

covery Act or the said Emergency Relief Appro-

priation Act of 1935, in the per formance of the

functions herein authorized.

To the.extent necessary to carry out the provi-

sions of this Executive Order, the. Administrator is

authorized to acquire, by purchase or by the power

of eminent domain, any real property or any inter-

est therein, and improve, develop, grant, sell, lease

(with or without the privilege of purchasing), or

otherwise dispose of any such property or interest _

- therein.

In the performance of the functions and duties

herein prescribed, expenditures are hereby author-

ized for contract stenographic reporting services;

supplies and equipment ; purchase and exchange of

law books, books of reference, directories, period-

icals, newspapers, and press clippings; travel

expenses, including the expense of attendance at

meetings when specifically authorized by the Ad-

ministrator ; rental at the seat of Government and

elsewhere; purchase, operation, and maintenance

of passenger-carrying vehicles; printing and bind-

ing; and such other exPenses as may be necesary

to the performance of tie functions herein author-

ized ; and, subject to the rules and regulations here-

tofore and hereafter prescribed by the President, I

hereby authorize the Administrator to accept and

utilize such voluntary and uncompensated services

and, with the consent of the State, such State and

local officers and employees, and appoint, without

regard to the provisions of the civil service laws,

such officers and employees, as may be necessary,

prescribe their duties and responsibilities and,

without regard to the Classification Act of 1923, as

amended, fix their compensation: Provided, That

_ insofar as practicable, the persons employed shall

be selected from those rectiving relief.

The uno’ ligated balances on June 30, 1935, of

allotments of funds made pursuant to Title II of

the National Industrial Recovery Act, approved

June 16, 1933, to departments and agencies of the

Government which continue to exist after June 16, ©

1935, for the performance of functions of the Fed-

eral Emergency Administration of Public Works,

are hereby reallocated for use by said departments

and agencies, respectively, after June 30, 1935, for

the purposes: for which originally allocated

thereto: Provided, That upon completion of the

project or work any unexpended Galanced of the

aforesaid reallocations shall be reported by the de-

_ partments er agencies concerned to the Secretary

of the Tréasury who will cause such balances to be

placed to the credit of the appropriations from

which said allotments were made.

FRANKLIN D. ROosEVELT.

Tar Wurre House

June 7, 1935.

[No. 7064)

APPENDIX C

SraTe LecisLAaTION®.

Re. es

- AwLaBaMa Acts, Extra Session 1933, No. 107

AN ACT To authorize counties, municipal corporations, and cities

within this State to acquire by purchase, construction, condemna- .

tion and/or. otherwise electric. light plants, power plants, power

_ lines, transmission lines and power distributing systems and to

maintain, improve, extend, and operate public utilities and to

borrow money for said purposes and to provide for the securing

and repayment of such money with interest.

Be it enacted by the Legislature of Alabama:

Section 1. That any county, municipal corpora-

tion, city within this State is hereby authorized and

empowered to acquire by purchase, construction,

condemnation, and/or otherwise, and to main-

tain, extend, improve, and/or operate electric light

plants, power plants, power lines, and electric dis-

tribution systems, together with the extension and

the app ances thereto, and all of the property,

tangible and intangible, and of like or different

kind, to be used or useful in connection therewith, .

either within or without, or partly within and

partly without, the corporate limits of such city or

the boundaries of such county, under thu provisions

of this for the purpose of producing, obt »*n-

ing, distgibuting, and/or furnishing an adequate

supply ef electricity for public, industrial, business, —

- domestic, light, power, and/or other consumption

within, or partly within and parfly without the cor- .

porate limits of such city or the boundaries of such

county. Franchise for the supply of said com-

_modities, or any ong or more of them, to other

municipalities and/or to the inhabitants, indus-

(52)

tries, and/or businesses therein shall be included

within the properties which any city or county may ~

acquire under the provisions of this act, and such

franchises may be acquired either from such other

- municipalities or from ‘the owners of such fran-

chises.. All or any part of any existing electricity

plant shall also be included in the properties which

any city or county may acquire under the pro-

visions of this act. Such city or county may ac-

quire nec or’ convenient rights-of-way

- within the city \and without the city and within

the County and\without the County in order

to reach any necessary or accessible source of power

at.a U. S. Governmert-owned Power Dem, or

otherwise.

Section 1—-A. Whenever any county, municipal

corporation, or city, through its governing body,

shall vote to take advantage of the authority herein

granted, as a condition to the exercise of.the au-

thority herein granted it shall call an election, at —

which election the question of whether or not such —

county or municipality will enter upon the under-

taking proposed by the governing body of the

county or city will be voted upon. If the majority

of the voters shall vote in the affirmative, then the

county or municipal governing body shall proceed

with the proposed undertaking in conformity with .

the provisions of this act and the law of the State

ertinent thereto; but not otherwise. Such elec-

tion shall be ordered, held, canvassed, and may be

contested, in the same manner as is, or may be here-

after, provided by the law applicable to the author-

ization of municipal bonds.

Srction 2. For the purpose of defraying the cost

of acquiring such plants, or any one or more of

Y a them, or any part or any part or parts theredf, and

Ee making improvements and extensions thereto, either ~

| —by purchase, construction, condemnation, or other-

a wise, any such city may borrow money from the

- | Reconstruction Finance Corporation, or from any

ae - other lender whomsoever, in such amount or

| amounts as the governing body of such city may

et E deem necessary or expedient, but no such city that

ci has reached or exceeded its constitutional debt limit

F ! which borrows money ” under the authority of this

| act shall bind its general credit, or incur any per“

sonal liability, or charge any. general or special

_ fund other than that herein authorized, or charge

any property other than that herein authorized, for

the repayment of such borrowed money, or the pay-

ment of interest thereon. ad

_ Section 3. Any such city which borrows money

under the authority of this act may pledge, create a

lien-upon, and mortgage, any. such-plants, or any

one or more of them, or any part or parts thereof,

together with the extensions, improvements and

appurtenances thereto and all other property, tan-

gible or intangible, and of like or different kind,

including franchises, acquired, constructed, or in-

st Gta fiat: io

PRE ee in bee aa anaes

‘ a i | stalled by me of money borrowed under the

Fi authority of this act, and also all or any part of the

: revenues deriv m the operation of such plants,

‘or any one or mdfe of them, or any part or parts

thereof, as security for the repayment of such bor-

rowed money, with interest.

Section 4. In addition, and for the further se-

curity of the lender, any such city which has bor-

rewed money under the authority of this act may

~ efiter into a contract, or contract&, with tlielender

binding itself for the proper application of money .

SST Ta EOE SI

an ‘

ew Ex mare

PRE eS

‘

‘\

sn ee

“es

BR ee ORE es

PES AIR BETO

reo

Rane ~ ~ ae

q 55

borrowed from such lender, antl for the operation

and maintenance of any such plants, or any one or

more of them, or any part or parts thereof, and for

rates, electricity supply and serviée, and for the

_ yates and service, and for any other act, series of

acts, duty or thing, not inconsistent with the pro-

visions of this act, for the protection of the lend-

er’s loan and the assurance of a reasonable return

upon the properties in which such loan is invested,

and interest of such loan may be met. But no mu-

nicipal corporation acquiring or constructing any

electric light plant or electric distributing system

under the provisions of this act, nor receiver of any

such electric light plant or distributing system

shall charge any rate for electric supply and serv-

ice that is higher than the rate for-similar electric

supply and service that has been aiithorized and

_ approved by the Alabama Public Service Commis-

of approxintately fhe same size in Alabama:

_ Section 5. Any such city which borrows money

under the authority of this act may evidence the

loan by an instrument, or instruments, in such

form and of such tenor and maturity as may be

agreed upon between lender and borrower, -but no

or property, any liability in excess of, or inconsist-

ent with, the liability authorized to be assumed by

this act. Gast

‘the imposition, collection, safeguarding, applica- —

tion, disposition and/or remittance or reasonable. -

promulgation of reasonable regulations relating to

ee ee

out of which operating expenses-and the principal | j

sion for public utility companies operating in cities. _

- such instrument shall purport, or be effective, to »

impose upon the borrower, or the borrower’s funds

SHRINE

etd ae

ong:

Section 6. Neither this act, nor anything herein

eontained, shall be construed:as a restriction or lim-’

itaffon upon any power or. right which any such

“city may have in the absence pis but shall be

construed as cumulative of.any su power or right.

Nor shall any enumeration of subjects herein be

_ construed to exclude any subject which is embraced

within any general language or this act.

‘Section 7, If, for any reason whatsoever any

section or part of this act shall be declared inyalid;

_ the invalidity of such section or part shall not affect

the validity of the remainder of this act.

Srcrion 8. The provisions of this Act are to be

considered cumulative and for the purpose of fur-

ther enabling counties, cities, and municipal cor-

porations in the State of Alabama to avail

themselves either by purchase, construction, or

condernnation of power-distributing | systems and

transfnissions lines in acquigjng power from the

United States Government or other owned power

Alabama, and foy-the purpose of borrowing money

expenses of same and securing its

Approved April 6, 1933.

Act No. 299 OF THE 1933 hoes OF THE Guvtear,

ASSEMBLY OF THE STATE oF SoutH C LINA

AN ACT to fh ae Any County, a Oy, City or Incorporated

Town of the State of South Carolina fo. Purchase or Construct a

Waterworks System, Water Supply Sy wer System, Sani-

tary Disposal Equipment and Appliances, Light Plant or System,

Natural Gas System, Ice Plants, Power Plants and/or Distribution

Systems, Gas Plants, Incinerator Plants, Hospitals, Piers, Docks,

Terminals, Air Ports, Toll Bridges, Ferries, Drainage Systems, Pub-

lic Markets, Public Recreation Parks, Swimming Poole,Golf Courses

and Stadiums, and in Furtherance Thereof to Purchase or Construct

stations such<as that now located at Wilson Dam,

Any Necessary Part of Any Such System Either Within or Without

the Limits of Such County, Township, City, or Incorporated Town,

as the Case May Be: and to Authorize Any Coynty, Township, City

or Incorporated Town of the State of South Mol Now or Here-

after Owning and Operating Any Such System or Piant to Improve,

Enlarge, Extend or Repair the Same: and for Any Such Purpose

or Purposes to Authorize Any Such County, Township, City, or

Incorporated Town to Issue Revenue Bonds Payable Solely from

the Revenues Derived from the Operation of Any Such System, |

Project, or Systems: to Regulate the Issuance, Sale, Retirement,

and Refunding of Such Bonds and of,Other Matters in Connection

Therewith: to Regulate the Use of the Revenues of Such System

or Systems When Such, Bonds are Issued or Outstanding: to

Provide for the Operation*of Any Such System or Systems in Case

of Deficiencies in Such Revenues, and fog Other Purposes.

Section 1. Sub-Divisiorfs of the State May Pur-

chase, Construct; and/or Improve Waterworks

Systems, Water Supply Systems, Sewer Systems,

Sanitary Disposal Equipment, Light Plants, Natu-

ral Gas Systems,/Iée Plants, Power Plants, Gas

Plants, Incinerator Plants, Hospitals, Piers;

Docks, Terminals, Air Ports, Toll Bridges, Ferries,

Drainage Systems, Public Markets, Public Recrea-

tion Parks; Swimming Pools, Golf Courses, and

Stadiums—‘‘System’’ Defined. |

_ Be it enacted by the General Assembly of the.

State of South Caroling: That any county, town-

ship, city, or incorporated town of the State of

South Carolina is authorized to, purchase or con-_

struct a waterworks system, water supply system,

- sewer system, sanitary disposal equipment, and ap-

plianees, light plant or system, natural gas system,

ice plants, power plants and/or distribution sys-

tems, gas plants, incinerator plants, hospitals,

piers, docks, terminals, air ports, toll bridges, fer-

ries, drainage systems, public markets, public rec-

reation. parks, swimming pools, golf courses, and

stadiums, and in furtherance thereof to purchase

or construct any necessary part of any such sys-

tem either. within or without the limits of such}

’

. + : .

earepesersrsemensenss pT Asti 8! Tre Re v

county, or the corporate limits of such city or in-

corporated town, and any p> shy township, city, or

incorporgtet town of the State of South Carolina

which may now or hereafter own ‘and operate any-

such system is authorized to improve, enlarge, ex-

tend or repair the same. The work system as used

in this Act shall include all of the projects and

undertakings referred to in this section, —

Section 2. Cumulative—Alternate Method.—

This Act shall be construed as cumulative authority

for the purposes named in Section 1 hereof, and as

to the manner and form of issuing revenue bonds

for any such purpose or purposes, and shall not

‘be construed to repeal any existing laws with re-

spect thereto, 4% being the purpose and intention of

this Act to create an additional and alternate meth-

od for the purposes herein named. .

_ Section: 3. ‘‘Borrower’’ Defined—The -word _

-#*borrower’’ as used in this Act shall be construed

to mean the county, township, city, or incorporated

town as the case may be, operating under this Ad&

Section 4. ‘Borrowing Body’’ Defined.—The ©

term ‘‘governing body”’’ as used in this Act shall be

construed to inean, in the case of a county, the

Board of County Commissioners, or other like gov- °

erning body thereof, in the case of a city or incor- .

porated town, the Board of Commissioners, the

Mayor and Council, or other like governing body

thereof, and in the ease of a township the Board o7

County Commissioners, or the governing body of

the County in which the township is located.

Section 5. Make Estimate of System.—When- -

ever the governing body of ahy borrower shall

determine to purchase, construct, improve, enlarge,

extend, or repair any system named in Sectioné -

a ce een .

under the provisions of this Act? it shal first cause

_an estimate to be made of the coat thereof, and tle

fact that such estimate has been made. and the.

' amount thereof shall appear in the ordinance au-

thorizing and providing for the issuance of the’

. bonds.

Section 6. Powers of Borrower—Ordinances—

Resclutions.—For the purposes of this Act any

borrower is authérized to adopt ordinances provid-

ing for the issuance of revenue bonds as herein

stated, and any and all other appropriate ordi-

“nanees and resolutions deemed necessary to effeetu-

- ate the full intent and purpose of this Act, in,

cluding the segregation of revenues derived from

hereof, the determinatéon, fixation, and revision

.from time to time of rates to be charged for serv-

ices, and any and all other necessary ordinances

and resolutions to protect the properties, to pro-

vide for the adequate operation thereof, and ta in-

sure the security of the bonds. Provided, However,

this Act shall be the same as is provided by the laws’

of the State in the case of cities, and the manner

of adoption thereof shall be as is provided in the

general laws of the State for cities. The amend-

shall be as is provided by the general laws of the

State for amendment of ordinances of cities. Such

ordinances and resolutions of counties shall be re-

corded in the minutes.of the governing body there-

shall be authenticated by the signature of the clerk

the operation of any. project named in Section 1 -

That in the case of counties and townships the

style of any ordinance or resolution adopted under °

ment of such ordinances and resolutions of counties |

of as soon as practicable after their passage and

of such governing body. “Any such ordinances or

“ - ie, : ;

_ resolutions of counties may bé published in a news-

paper of general circulation in such county.

SecTION 7. May. Borrow— Issue Bonds— |

-Bonds—Payment.—For the purpose of defraying ©

_ the -cost of purchasing, constructing, improving,

enlarging, extending, or repairing any such sys-

tem or project, any borrower may borrow money

and issue its negotiable serial bonds, provided that

no such bonds shall be isstied unless and until au-

thorized by an ordinance which shall set forth a

brief description of the contemplated improve-

ment, the estimated cost thereof, the amouft, maxi-

mum rate of interest, time and place of payment,

and othe¥ details in connection with the issuance

of the bonds.* Such serial bonds shall bear interest

at not more.than six per cent (6%) per annum,

payable semi-annually, and sHall be payable at such

times, not exceeding forty-five. (45) years from

their date, and at stch places aS shall be prescribed

- in the ordinance providing for their issuance. The

bonts and the coupons. shall“be exécuted in such

manner and shall be substatitially in the form pro-

vided in the authorizing ordinance. ‘Such bonds

shall be sold in such mamper and upon such terms

- as the governing body shall deem for the best in-

terests of the borrower. In no event shall any of

the bonds be sold on a basis to yield more thay six

per cent (6%) per annum from the date of sale

to the date of average maturity of the bonds sold. ©

Provided, however, That in any contract for the

purchase or construction of any system or project

named in Section.1, or for the improvement, en-

largement, extension, or repair of any such system

or project provision may be made that payment

therefor shall be made in such bonds. Such bonds

and their coupons may be made payable in lawful

money of the United States of America, or in gold

coin of the standard weight and fineness existing

on the date thereof. Such bonds sifall mature an-

, nually, or semi-annually and the first installment

thereof shall be. made payable not more than five

(5). years from the date of such_borids. No such y

installment shall be more than two and one-half

times as great in amount as thé’smallest prior in- ,

stallment of the same issue. If all the bonds of |

an issue are not issued at the same time, the bonds

at any one time outstanding shall mature as afore-

said. ‘The principal ‘of ,and interest upon. such

_ bonds shall be payable solely from the revenue de-

rived from the operation of the system or project

. for the purchase, construction, improvement, en-

_ largement, extension, or repair of which the same

are issued; Provided, however, t where a bor-

rower improves, enlarges, extends, or repairs any

system or project named in Section 1 the princi-

pal of interest upon such bonds may be made

payable from the revenues derived from the opera~ |

tion of the entire system or project. No borid or

coupon issued pursuant to this Act shall conatjtute

an indebtedness of such barrower within the mean-

ing of any State constitutional provision or statu-

tory limitaffon. It shall be plainly stated on the

' face of such d and coupon that the same «

has been: issued r the provisiogs of this Act

and that it Joes not constitute an indebtedness of

such borrower within any State constitutional Pro.

vision or statutory limitation. Provided, however,

That any municipality now or hereafter owning pi

~ and operating a system or project namgd in See- i

tion 1, whether constructed under the provisions of ‘

a aes |

‘ 62 | soe

this Act or not, and desiring to improve, enlarge,

extend or repair the same, may issue revenue ,

bonds under the provisions of this Act to pay for

such improvements, enlargements, “extensions or

repairs, payable from the net revenues to be de-

rived from the operation of the existing system or

project as improved, enlarged, extended’ or re-

paired, but nothing in this proviso shall be. con-

strued as authorizing any such municipality to

impair or commit a breach of the obligation of any ~

valid lien or contract created or entered into by it,

the intention hereof being to authorize the pledg-

- ing, setting aside and segregation 0 h revenues

for the construction of such improvements, en-

largements, extensions or repairs only’ where con-

sistent witl. outstanding obligations of such

municipality.

on 8. Bond Holders Hive Lien on Sys-

tem.—There shall be created in the authorizing

ordinance a statutory lien upon any such system or

project, and the appurtenances and extensions |

thereto so to be purchased, constructed, improved, ~

enlarged, extended or repaired, to and in favor ot

the holders of said bonds and each of them,gand to

and in favor of the holders of the coupons of said °

bonds, and each of them.’ Provided, however, That

where any borrower. purcliases, constructs, im-

proves, enlarges, extends or repairs any system or

project named in Sectjon 1, said statutory lien may

be created and declared to be upon the whole of —

such eombined system or project with appurte-

nances and extensions therete, if the governing

body so determines.

SEcTION 9. Enforcement of Lien.pf Bond Hold-

ers.—Such system project or combined system so

. * an ‘ . : - oa n.® ~s 2 a

d ‘ . e : st, Cie pk ee a ~

p ; aay _—

‘

er a

purchased, constructed, improved, enlarged, ex-

-tended. og repaired shall remain subject to said

statutory lien until payment in full of the principal

of and interest upon said bonds. Any holder of

-any said bonds 6t of any of the coupons represent-

ing interest accrued thereon, may, either at law or

in equity, by suit, action, mandamus, or other pro-

ceedings, protect and enforce said statutory lien P

and may-by/suit, action; mandamus or other pro-

ceedings, enforce and compel performance of all

duties of the officials of the borrower, in¢ttding the ,

’ fixing of sufficient rates, the collection of revenues,

the proper segregation of the revenues of the proj-

ect or combined system, and the proper applications ’

thereof. - Provided, however, That said statutory

- lien shall not Beconstrued to give any such bond %

or coupon ‘holder futhority to compel the sale of

such project. or combined system or any part

« thereof. a vn | .

Section 10. Receiver — Appointment — Duties

and Powers.—If there be any default in the pav-

ment 6f the pefncipal of or interest upon any of

said bonds, any court\having fartatietion Beng.

proper action may appoint a reeeiver to adminis-

ter and opertte the system, project, or combined

system so encumbefed, on behalf -of the borrower™

with power to &x and charge rates and collect rev- i

enues sufficient to provide for the payment of any -

bonds or other obligations outstanding against said =

systems or combined: system and for the payment

of the expenses of’operating and maintaining the

same and to apply the income and revenues of said

system, project, or combined system in conformity - .

with this act and the ordinafice providing for the

issuance of such bonds. ibe a pie

Section 11. Limitations of Bonds.—The borids

authorized hereunder shall riot be subject to any

limitations or provisions of the ngynicipal bond

ode or the bond laws for‘eounties as now in force ,

. or hereafter amended. ae ae eee ae

SECTION 12.. Bonds Legal Investments.—Bonds

issued under the provisions of this act are legal in- .

vestments for executors, administrators, trustees,

and other fiduciaries and for savings banks and.

insurance companies os under the laws of

this State.

Section 13. Bonds Tax Exémpted. The bonds *

and interest coupons issued hereunder are hereby |

_ exempted from any and all State, County, munici-

.» pal, and other taxation whatsoever under the laws:

of the State of South Carolina, and. it shall be

-/«< plainly stated on the face of each 5 such bond as fol- |

lows: ‘‘The principal of and intérest on this bond

are exempted from any and all ‘State; countyahd ~

munieipal and.other taxation whatsoeyer under the ‘

Jaws of the State of South Carolina.” Mes,

-Secrion. 14. Bonds Negotiable—Such bonds

‘shall have all the qualities of negotiable instru-

ments under the law merchant and the negotiable

instruments law. * +

Srction 15. Deposit Proceeds from Bonds.—

The ‘governitig body,. where practicable, shall re-

quire that the proceeds of the sale of bonds issued

under the provisions of this Act be deposited in a

special account or. accounts in a_bank or banks

which are members of the Federal Reserve System, |

and shall require, insofar as: practicable, that each

such deposit be secured by United States Govern- .

ment securities having am aggregate tharket valudy

at least equal to the sum a at the time on deposit, or °

in any event, the proceeds shall be deposited .in

some, bank or other depository, either within or

without the State, which will secure such deposit

satisfactorily to said governing body. a :

Snorion 16. Use of Proceeds from Bonds.—All

moneys received from any such bonds shall be used

> -. solely . for the purchase, construction, improve- .

mént, enlargement, extension or repair of the sys-

' tem, project, or combined system for which issued,

including. any engineering, legal and. other ex-

penses incident thereto: Provided, however, That.

such mgneys may be used also to advance the pay-

ment. of the interest on such- bonds during the first

‘three (3) years following ‘the date of such bonds:

Provided, That any unexpended balance of the

proceeds of the sale of any such bonds remaining

: after the completion of the project for which is-

sued shall be paid immediately into the Bond and

Interest Redemption Fund for such-bonds, and

’ the same shall be ‘used only for the payment of the

principal of.the bonds, or, in the-alternative, to ac-

quire outstanding bonds of the general issue from

which the proceeds were derived, by purchase of. °

~ such bonds at a-price (exclusive of accrued inter-

est) not exceeding the face amount thereof. Any

bonds 20 acquired by purchase shall bé' cancelled

and shall not be reissued. - ;

Section 17. Undelivered. Bonds Executed by

Ex-officers Valid.—In casé any of the officers whose

signatures or counter-signatures appear on the

ponds or coupons shall cease to be such officers be-

fore delivery of such bonds, such signatures or .

~ eounter-signatures_shall nevertheless be valid and,

- sufficient for all purposes the same as if they had

: yemained in office until such delivery. | eo

- 66

Section 18. Payment for Service by Bor-

rower.—No free service shall be furnished by any

such system or combined ‘system to the county,

township, city or incorporated town or to any

agency, instrumentality, person, firm or corpora-

tion. The reasonable cost.and value of any service

rendered to any such borrower by any such system,

project, or combired system shall be charged ©

against the. borrower and shall he paid for monthly

as the service accrues from: the current funds, on

from the proceeds of taxes which such borrower,

within constitutional limitations, is hereby author- .

ized and required to levy in an amount sufficient for

that purpose, and such funds, when so paid, shall.

be accounted, for in the same manner as other reve-

nues of such system or combined system.

Section 19. Additional Bonds.—Any borrower

_ purchasing, constructing, improving, enlarging or

repairing. any such system, project or combined

system pursuant to the provisions of this Act, may,

at the time of the authorization of such bonds for

any such purpose or purposes, provide in the au-

thorizing ordinartce for additional bonds for other

extensions and permanent improvements, which

, additional bonds may be issued and be negotiated -

from time to time as such proceeds for such pur-_

pose may be necessary. Such bonds, when so nego-

tiated, shall have equal standing with the bonds of

the same issue.

Section 20. Revenue Refunding Bonds.—Where

a borrower has outstanding any bonds issued under

_ thesprovisions of this Act, it may thereafter issue

and negotiate new bonds on such terms as the gov-

erning body shall deem allvisable for the purpose of

providing for the payment of any such outstanding

bonds. Such new bonds shall be designated ‘‘reve-

nue refunding bonds,’’ and shall be secured to the

same extent and shall have the same source of pay-

ment as the bonds which have been theréby

refunded. Fe

- SeEcrTion 21; Rates for Service Rates for serv-

ices furnished by any such system or combined sys-

tem shal! be fixed precedent to the issuance of the

bonds. Such rates shall be sufficient to provide for

the payment of the interest upon and the princi-

pal of all such bonds as and when the same become

due and payable, to create a Bond and Interest Re-

demption Fund therefor, to provide for the pay-

ment of the expenses of administration and opera-

tion and such expenses for maintenance of the sys-.

tem or combined system necessary to preserve the

same in good repair and working order, to build up

a reserve -for depreciation of the existing system,

project or combined system, and to build up a re-.

serve for improvements, betterments and exten-

sions to the existing system, project, or.combined

system other than those'necessary to maintain the

same in good repair and working order as herein-

before in this Section provided. Such rates shall

be fixed and revised from time to time so as to pro-

duce these amounts, and the governing body shall

covenant and agree in the ordinance authorizing

the issuance of such bonds, and on the face of eaeh

bond at all times to maintain such rates for serv-

ices furnished by such system, project or com-

bined system as shall be sufficient to provide for,the

foregoing. | ae

Section 22. Bond and Interest Redemption

Fund—Qperation and Maintenance Fund—Depre-

. ciation Fund—Contingent Fund.—In the author-

izing ordinance the governing body of the -bor-

rower shall set aside monthly (or oftener if deemed

advisable) and shall pledge the gross revenues of

the system, project, or combined system into sepa-

rate and special funds as follows: Out of the gross

revenues there shall be first set aside a sum suffi-

cient to pay the principal of and the interest upon

the bonds as and when the same become due and

payable. In tke event that the gross revenues of

. any calendar, operating, or fiscal year shall:be in-

sufficient to pay the principal of and interest on the

bonds maturing in any such calendar, operating, or

fiscal year, then an additional amount sufficient to

pay the principal of and interest on such bonds out-

standing and unpaid shall be set aside out of the

gross revenues of the next succeeding calendar, op-

erating, or fiscal year and applies to the payment of

the, prineipal of and interest on such outstanding

and unpaid bonds. This fund shall be designated:

_ “Bond and Interest Redemption Fund.”? Out of .

the remaining gross revenues there shall be next set

aside a sum sufficient to provide for the payment of

~ all expenses of administration, operation, and such

expenses for maintenance“As may be necessary to

preserve the system or combined system in good

repair and working order. This fund:shall be des-

ignated ‘‘Operation and Maintenance Fund.’’ Out

of the remaining gross revenues there shall be next

set aside a sum sufficient to build up a reserve for |

depreciation of the existing system or combined

. * system. This fund shall be designated ‘“‘Deprecia-

tion Fund.’’ Out of the remaining gross revenues

_ there shall be next set aside a sum sufficient to build

up a reserve for improvements, betterments, and

extensions to the existing system, project, or com- .

‘bined system other than those necessafy to main- -

tain the same in good repair and working order-as

hereinbefore provided for. This fund shall be des-

ignated ‘Contingent Fund.’’ Any surplus reve-

nues thereafter remaining shall be disposed of by

. the governing body of the borrower as it may deter-

mine from time to time to be for the best interest of

the borrower. Provided, However, that insthe se-

gregation and separation of said gross reyenues -

into the several funds in this Section stated, the

governing body may prescribe a reasonable excess

amount to be placed in the Bond and Interest Re-

demption Fund from time to time during the

earlier years of maturities of such bonds as thereby

to produce and provide a cushion fund to meet any

possible deficiencies therein in maturities of future

years, and in the event that such excess amounts are -

thus provided, provision may be made in the ordi-

nance for the scaling down of the amounts of such |

future years in the event the surplus so provided in

the earlier years may then be found to have been

accumulated and to be available. Bonds issued

under the provésions of this Act, shall be payable .

solely frem the revenues in said Bond and Interest

Redemption Fund. sce i

Sporion 23. Payment Expenses of Operation or

Maintenance.—Nothing in this Act shall be con-

strued to prohibit the borrower from appropriat-

ing and using any part of its available income or

revenues derived from any source other than from

the operation of such system, project or combined

system in paying any immediate expenses of opera-

tion or maintenance of any such system, project or

combined system, but, nothing in this Act shall ‘be

construed to require the borrower to do so.

Secrion 24. Custodian of Gross Revenues—

Trust Funds.—The governing body of the borrow-

er shall ‘designate as custodian of the gross reve-

nues from the operation of.the system or combined

system a bank or trust company duly qualified and

doing business within the State of South Carolina,

- which Shall be satisfactory to the governing body of

such borrower. The Bank or trust company shall

signify its acceptance of such custodianship by a

written instrument directed to the governing body

of the borrower.- ‘All funds from time to time de-

rived from the operation of such system, project,

_ or combined system, or funds of the borrower sup-

_ plemental to the Operation and Maintenance Fund,

- the Depreciation Fund and/or Contingent Fund

shall be deposited by such bgrrower with such bank

- or trust Sompany and be set apart by such bank or

trust company pursuant to written instructions

from such borrower into the appropriate‘tund or

funds designated in Section 22 of this Act. Each

- and all of said designated funds from time to time

held by such bank or trust company shall be im-

pressed with a trust for the benefit of the person

or persons entitled thereto. 9

+ SercTion 25. Year Basis.—The wnlbenhes author-

izing the issuance of such bonds shall definitely de-

termine whether-such system, project, or combined

system shall be operated upon a calendar, operat-

ing, or fiscal year basis, and the dates of the be-

ginning and ending of same.

Section 26. Surplus: in Operation and Mainte-

- nance Fund—Disposition.—If any surphus shall be

‘accumulated in the Operation and Maintenance

Fund whieh shall be equal to the cost of operating

and maintaining such system, project, or combined

‘ >

ait

system during the remainder -of ‘the calendar,

operating, or fiscal year, as provided by the author-

izing ordinance, arid the cost of operating and

maintaining such system, project, or combined sys-

tem during the succeeding like calendar, operating,

or fiseal year, any such surplus may be transferred

at any time by the governing body to the Deprecia-

tion Fund, Contingent: Fund, or to the Bond and

Interest Redemption Fund.

Section 27. Surplus in Depreciation Fund—

Disposition —If any surplus shall be accumulated

«. in the Depreciation Fund ‘over and above that

which the governing body shall find may be neces-

sary therein during the then present . calendar,

operating, or fiscal year and the next ensuing cal-—

endar, operating, or fiscal year, any such excess may

be'transferred to-the Contingent Kund or the Bond

J avt-Interest Redemption Fund. .

Section 28. Surplus in Contingent Fund—Dis-

position.—If any surplus shall be accumulated in

the Contingerit Fund over and above that which |

__ the governing body shall find may be necessary for

‘ reasonable and proper improvements, betterments,

and extensions to the existing system or combined

system during the present ealendar, operating, or

fiscal year and the next ensuing calendar, operat-

ing, or fiscal year, any such excess may be trans-

ferred to the Bond and Interest Redemption Fund:

or may be applied,.in so far as possible, in the

purchase or retirement of outstanding bonds issued

under the provisions of this Act, and for that pur-

pose the governing body is authorized to purchase |

such bonds not due ig the open market at not more

. than the fair markét value thereof. “Where such

bonds are purchased for investment the income

from such investment shall be carried into the

Contingent d. -

Section 29. Regulation of Rates—Franchise—

No Effect on State’ Board of® Health _—Rates

charged for services furnished by any system or

combined system purchased, consffucted, im-.

proved, enlarged, extended, or repaired under the

provisions of this Act shall riot be subject to super-

Vision or regulation by any State. bureau, board,

commission, or other like instrumentality or agency

thereof, and it shall not be necessary for any bor-

- rower, opefating under the provisions of this Act

to obtain’ any franchise or other permit from any

State bureau, board, commission, or other instru-

mentality thereof in order to construct, improve, —

enlarge, extend, or repair any system or combined

system named in this Act. Provided, however, —

That the functions, powers,-and duties of the State

- Board of Health shall remain snaiincied by this |

Act.

‘Srorion 30. Books and Missi daawial Re-

port-——Inspection.— Any. borrower issuing revenue

.bonds under the provisions of this Act shall install

and mainthin proper books of record and account

(separate entirely from other records and accounts

of such borrower) in which full and correct entries

shall be made of all dealings or transactions of or.

in relation to the properties, business, and affairs

of the system or combined system. The govern- .

ing body of such borrower, not later than three

months after the close of any’calendar, operating, —

or fiscal year, shall cause to be prepared a balance °

- sheet and an income and surplus account, showing,

respectively, in reasonable detail the financial con-

' dition of the system or combined: system at the

close of sucy preceding calendar, operating, or fiscal

year and the financial operations thereof during

such year. Said balance sheets and income and

surplus accounts shall at all reasonable times

- ing usual business hours be open to examination

and inspection by any taxpayer, user of the services —

- furnished by the system, or any holder of bonds

issued under the provisions of this Act, or anyone

acting for or on behalf of such taxpayer, user of

the services of the system, or bondholder.

Section 31. Pay Bonds Before Maturitires.—

Thé governing-body of the borrower authorizing

bonds. under the provisions of this Act may make -

provision for-any of such bonds to be called for

payment on any interest payment date before ma-

. turity, provided the borrower shall have on hand

in its Bond and Interest Redemption Fund suf-

ficient moneys not otherwise appropriafed or

pledged, in excess of the interest and principal

requirements within the’next two succeeding calen-

_ dar, operating, or fiscal years.

Section 32. No effect on Existing Contracts and

Liens.—Nothing in this Act shall be construed as

authorizing any borrower to impair or commit a

_ breach of the obligation of any valid lien or con- ~

tract created or entered into by it, the intention

hereof being to authorize the pledging, getting

-aside, and segregation of gross revenues only where

consistent with outstanding cian of such

borrower.

SecTIoNn 33. Issue Bonds without Election, or No-

tiga.—This Act shall be construed as authorizing

the issuance of such bonds provided for herein —

without submitting the proposition for the ap-

proval of same to the voters of the borrower.

a) 0 —- wy

Ss MP ,

>. ' 6 ~

Where bonds are authorized under this Act it shall

not be necessary to make publication of any ordi-

nance, resolution, notice, or proceeding relating

thereto. Pxbvided, however, That nothing in this

‘Act shall be construed to prohibit the governing

body from making such publication as it may deem

-necessary in relation thereto,

Section 34. Construe Liberally.—This Act, we

_ ing necessary. for and to secure the public health,

“ safety, convenience, and welfare of the counties,

townships, cities and incorporated towns of the

Statesof South Carolina, shall be liberally &on-

struéd to effect the purposes hereof. :

Secrion 35. State Bond Commissioner—Du-

ties—Time to. Test Validity of Bonds. —For the

protection of purchasers of any bonds authorized

aa pursuant to the provisions of this Act, fhe Attorney!

General is hereby made Ex-officio Bond Commis-

sioner of the State,of South Carolina, It shall be

the duty of such Bond Com-aissioner to prepare

uniform forms and prescribe a method of proce-

dure under the laws of th State in all cases where

_ it isfiesired to issue said bonds in any county, town-

p, city, or incorporated town of the State of

South Carolina; and it shall he the-further duty of

said Bond Commissioner to examine into and ‘pass

‘ upon any of said bonds so issued, and said bonds,

when declared by the certificate of said Bond Com-

missioner to be issued in aecordance with this Act

and the forms of procedure so provided, shall be

incontestable in any court in the State of South

Carolina unless suit thereon shall be brought in a

-. court having jurisdiction of the same within thirty

(30) days from the date of the approval of said

bonds by the Bond Commissioner. “No bond here-

o ° ->

~~.

a : ' “Att a

. 75

after issued by any county, township, city, or in-

corporated town pursuant to this Act shall be valid

.. Without the certificate of said Bond Commissioner.

. Approve Bonds.—All Bonds authorized pursuant _

to the provisions of this Act shall be subject tg the —

approval of the-Sinking Fund Conimission of the

State of South Carolina and no bonds issued under

the provisions of this Act shall be valid without

the certificate of approvaf of the Sinking Fund

Commission. aan 7 |

“Secrion 36. Saving Clause —They invalidity of.

any section¢sentence, clause, paragraph, or portign.

of this Act shall not affect the validity of the

remainder of this Act. ae

rag ‘are

Acr No. 1095 or THE 1934 AcTs oF THE GENERAL

ASSEMBLY OF THE STATE OF SOUTH CAROLINA *

AN ACT to Authorize and Empower the Finance Board for Green- ‘

wood County to Contract with the Public Works Administration; —~ :

to Perform such Acts and Duties as may be Necessary and Incident

to Securing a Loan, or Loans, for a Hydro-Electric Project; to’

Define and Limit its Duties and Powers; to Empower the said

Board to Borrow Pursuant to Aufhority Conferred by any Other

Statute for the Named Herein and Especially Undér the —

Provisions of an’ Act Entitled “An Act to Authorize any County,

nag yoy or Incorporated Town, Etc.” Designated as Act

No. 209 o \the Acts of the General Assembly of 1933.

Sxcrion 1. Finance Board, Greenwood County, ”

. Borrow for Hydro-Electrie Plant.—Be tt enacted -

by the General Assembly of the State .of South

Carolina: That the Finance Board of Greenwood

County is authorized and empowered to borrow .

from the Public Works Administration, or any

Federal Government or pursuant to any Act of the

Congress of the United States, the proceeds of any

<—- -

SEE SMA RONDE RLY CRY EMRE NSE OT A oe

such loan to be used for tkg purpose of acquiring

any necessary lands, easements and rights of way

for a hydro-electric plant and for the construction

thereof at a dam at or near ‘‘ Buzzard Roost-’ on

Saluda River and for the purchase of any and All

necessary machinery or other equipment used in

connection with the operation of any such plant,

_ with the furtlter right to construct and maintain

power transmission lines. *° «& | :

-Section 2. Powers of Board—Project . Self

Liquidating.—The said Finance Board of Green-

wood County is authorized and empowered to do

any and all acts necessary and incident to securing oo

any such loans and to execute evidence of indebted-

ness therefor under such agreement as the said

Board and the ‘agency or the corporation from

whom the loan is obtained may agree upon. They

are empowered to pledge the property acquired as.

well as the income therefrom to the retirement of -

any such loan.

ing project and that any indebtedness or obligation

_ ereated bythe said Boardashall not be a direct and

primary obligation of: the County of Greenwood ;

bonds or securities issued hereunder to be ‘in ac-

cordance with the terms, conditions, and powers

General Assembly, 1933, inclucing all amendments

thereto. Riis

_ Section 3..Keep Funds Separate.—All funds

borrowed pursuant to the authority conferred in

this Act, as well as in pursuance of the authority

conferred by any other statute, to be used for the

purposes named herein, shall be kept separate and

distinct from other funds of Greenwood County

It is declared that this project is a self liquidat- |

granted and given in Act No. 299 of the Acts of the |

ee .

‘and not commingled or intermingled with the

finances of the said County in any respect. |

Sxcrion 4. All Acts or ‘parts of Acts inconsistent =

with this Act are hereby. repealed. = -

-. Gsorton 5. This Act shall take effect upon. its

approval by the Governor.

Approved the 12th day of April 1934. ¢

ae’.

AOE POR OISE I

APPENDIX D

LEGISLATIVE HISTORY

s :

INTENT OF CoNGRESS WITH RESPECT TO COMPETITIVE

PRoJECTs AS SHOWN. BY LEGISLATIVE HISTORY OF

i: EMERGENCY RELIEF APPROPRIATION Act, 1935

In thre debates on the Emergency Relief Appro-

priation Act of 1935; while that legislation was

pending in Congress, the following amendment °

was introduced by Senator Austin:

_ Section —. Public -projects, Federal,

State, or municipal, undertaken pursuant to

this joint resolution, shall be selected and

planned so that when completed they shall

not complete with existing private enter-

prises.

Said amendment was voted down by the. Senate.

(19 Cong. Ree. 3972-3973.) | |

The debates in the Senate on the subject of that

proposed amendment: were as follows (79 Cong. ’

Ree. 3972) : |

Mr. Austin. Mr. President, that amend-

-ment needs very little explanation. Every-

one understands its scope, and everyone

must recognize at once that it is in full sym-

pathy with the purposes of.the pending joint

resolution.

-¢ Of course, there is nothing which can re-

turn to active service or employment men .

and women who are not now employed so

much as the revival of private enterprise.

The Government cannot ‘possibly employ so

(78)

a’

‘many people as can private employers. Of .

course, too, as the second premise, there 1s ,

nothing which wil encourage private enter-

prise to start up so much as the removal of -

fear of competition by the Government and

the restoration of confidence.

Therefore this amendment is intended to

- promote the objects of the joint resolution ;

and I hope it will receive favorable consid-

eration. ae. uh =

Mr. Guass. Mr. President, will the Sen-

ator yield? |

Mr. Austin. I yield to the Senator from |

_ Virginia. °. io ;

Mr. Guass. There is so mudéh confusion in

the Senate that I-did not distinetly hear the

amendment to the joint resolution proposed

by the Senator from Vermont, as read.

However, I think I gathered the substance

of it; and I should like to ask the Senator

from Vermont if he does not think it is

covered by section 7 of the joint resolution ?

Mr. Austin. I think not: I think it is not»

covered by section 7 of the joint resolution.

Mr. Guass. I desire that the clerk again

- read the amendment.

The Vick PRESIDENT. The.amendment will

_ be restated. : ,

» * * — *

Mr. Guass. Mr.’President, section 7 of the

joint resolution provides: .

‘‘Wherever practicable in the carrying

out of the provisions of this joint resolution,

full advantage shall be taken of the facilities

of private enterprise.”’ vi

Mr. ‘Austin: Mr.’ President, as I under-

plishes the same objective as does my amend-

ment. ,If the distinguished enator in

“charge of the joint resolution believes they

27949—37——-6

mean the same thing, I on like to have

my- amendment agreed to, because I think

it would remove from doubt the meaning of

the joint resolution.

Mr. Guass. I have r / doubt of the mean-

: ing of that provision of the joint resolution.

Mr. JoHNSON. Mr. President, I ask the

attention of the Senator from Virgina [Mr.

Glass] for a moment. ae

I submit to the Senator from Virginia

that the two provisions have diametrically

different meanings. The purpose of the

amendment presented -by the Senator from

Vermont: is to prevent: the ultimate con- ~

struction of anything which may.interfere |

with something which may have been done .’

by private enterprise. That is not the pur-

pose at all of section 7, as I undérstand. I

presume our old friends, the power com- |

panies, come into the picture thus; and the. .

Senator is afraid that some power plant

may be erected in-a municipality by funds -

which come from this source to provide:

work for men who need work in a particular

municipality, and he does not want the

funds used in that particular manzier. |

Mr. Guass. Mr. President, the Senator

from California was not explicit enough to -

suit me as to which Senator he had in mind

when he said a Senator was proposing to

protect the Power Trust:

Mr. JoHNSON. No, no; I was not speaking

of tle Senator from Virginia in that re-: -

gard. The Senator referred to section 7,

which conveys one idea. The other idea to.

which I referred was presented by the Sen-

ator from Vermont:

' Mr. Grass. I want to know which provi-

sion it is that protects the Power Trust. fl

do not think mine does. |

Mr. Jonson. My remarks in that regard

were perfectly plain; and the Senator from

Virginia ought not to take umbrage at them

at all. :

Mr. BYRNES. Mr. President, will the Sen- |

ator yield? | =

Mr. Austin. I yield to the Senator from

South Carolina. ee |

Mr. Byrnes. If a- request for money

&hould be made for the development of a

rural electrification project, the Senator’s

amendment, as I gather its purport, would

prohibit éxpenditure for such a purpose. Is

that true? -

Mr. Austin. Mr. President, I do not un-

derstand it to provide so at all.

' Mr. Byrnes. Is not the language of. the

amendment that no funds shall be used for

any project which, when completed, would

compete with a private enterprise? ~ 4°

Mr. Austin. The last sentence of thaSen-

ator from South Qarolina was not included

in his previous question. :

Of course, the construction of an electrificatio

project competing with private enterprise would

come within the prohibition of the amendment,

‘if the amendment were adopted.

Let me say; however, before I finish, that

it is something of an assumption to say that

the-power companies are back of this amend-

ment. The power companies had nothing at

alltodo withit. -

‘Mr. Byrnegs. Mr. President, will the Sen-

ator yield to me? os |

Mr. Austin. I yi. id.

Mr. Byrnes. Of course, I did not make

that statement. I was simply asking for the

_ Senator’s construction of his own amend-

ment—whether or not it would prohibit the _

construction of a rural electrification project

> erger oT

at a Ge

if that project competed i in any way with an

existing enterprise?

Mr. Austin. Yes, of course, it would.

That is just the point. The waste of money

in putting up a competing line of rural elec-

trification is one of the things the amend- - °

ment would prevent.

Mr. Byrnes. How about the construction

‘of a housing project?

Mr. Avustiy. It would depend upon where

‘it was located and whether it would compete.

Mr. Byrnes. If a housing project were

constructed at a place where other houses

were rented, would the Senator say it was

in competition with the landlords who owned

the other houses ?

‘* Mr. Austin. Not unless it’ ‘competed —_

private enterprise.

Mr. Bark ey. Mr. President, of course ‘it

would compete with private enterprise if

people rented the- houses which were, con- .

structed under a housing project. If they “.

did not rent the houses constructed under

the project they might be forced to rent some:

se houses. That would be competition;

it not?

i Austin. That does not necessarily

follow. A housing project which was not

in a place where houses were already in .

existence would not be in competition with

other houses.

Mr. Barkizy. A housing project is not

going to be undertaken out in the middle of

. a vacant field. It would undoubtedly be in

a city or town. It is difficult to see how a

housing project in a thickly settled city

might not, when completed, compete with

some private houses already there.

Let us suppose that in some city, town, or

| village there is a water nem, owned by a

private organization, which is inadequate to.

serve the citizens. Under the’ Senator’s

amendment it would be impossible for the

_ municipality. to install a water system which

would serve the community because one was

already there, although it was inadequate to

serve the community. Tee ky Be

Of course, one can by-a stretch of the imagi-

riation picture a situation for which the

amendment would not be ideal, but I have in

- mind projects for manufacturing and retail

businesses engaged in various ‘activities

which have been heretofore simply left. to

private enterprise—enterprise that provides

. the taxes which will go to pay the sums ap~-

propriated by this measure. It is to prevent

an enormous amount of capital being thrown

- into competition with private capital that I

offer the amendment. I ask for a vote. —

In the foregoing debates, reference was made to

Section 7, which was adopted by Congress but |

which, when the Bill was finally enacted, became —

Section 8. That section reads as follows: ‘*When-

ever practicable in the earrying out of the provi-

_ sions of this joint resolution, full advantage shall

be taken of the facilities of private enterprise.”’

The following debate (79 Cong. Rec. 2396) clearly

shows the meaning of that section: .

Mr. McCarran: * * * This amendment

was suggested by those who had been en-

gaged in the contracting business through- .

out the country. “They feared that perchance

the contractors, who have $1,600,000,000 in-

vested in various lines of employment,

might be entirely left out; so they sought a.

general amendment, which I offered in the

1 A TOTES

OR OREN, IMME EE I IIE LP POLLO ALLA IL ID

"84

and in the language stated, that, wherever

practicable, the facilities of private enter-

prise should he resorted to. That simply

means, as in the building of highways -

throughout the country today, we have high-

way-construction engineers or highway-con-

strucfion- groups, with their equipment, all

ready to go td work, that, if the President

wishes, and . thinks it practicable, he may

call upone them so far as their facilities

‘permit.

‘That is the object of the amendment. I

was not the author of it, but I did sponsor

it, and I sponsor it now, in furtherance of

. giving to the contractors of thé country an

opportunity to employ labor they have car-

ried, during the hours of depression, many

of them keeping their equipment and labor |

contingent, on at a terrific loss. Wherever

it is. practicable, the amendment provides

that their facilities shall be utilized.

That is the explanation of the amendment.”

If the Senator has.any further questions, Lt

shall be glad to answer them. I again apolo-

gize to the Senator. I was not giving atten-

tion to his question, and I am very sorry.

Mr. Bone. Mr. President, the Senator:

. from Nevada owes me an apology. There

was a great deal-sf confusion in the Cham-

_ ber when I asked the question. I can un-

derstand why everyone would be confused ;

but I know that these words have meaning,

and that some interpretation is going: to be -

given them by those who will construe the:

fan int resolution, especially by those in

ashington, D. C., who are aa to dis--

burse this money.

Mr. McCarran. That is true.

Mr. Bone. I want to be absolutely certain.

that these words are not misinterpreted to

AL ABER IGE EL EOL SES

br disadvantage of my State or any other

aaa 0 Ve

9 Mr. McCarran. That is the object and -

purpose, and that is the whole idea behind

Mr. Bone. These words may be construed

absolutely to prohibit force-account work

wherever it is possible ‘to/let contracts. Is

that the Senator’s intention? ,

Mr. McCarran.. That is the object. |

Mr. Gass. No; wherever it is practicable.

~ Mr. McCakRan. Wherever practicable, ~

Mr. Bone. Very well, so long as we under-

stand that. We desire to know what we are

doing when we vote ‘‘yves’’ or ‘no.’

‘he Vick PRESENT. The question is on

agreeing to the committee amendment known

- as “section 7.” : %

The amendment was a

‘“©Work UNDER

EacH PARTICULAR Progect’’ IN THE 1935 AcT

priation Act of 1935), was pending before the Sen-

ate, there was considerable discussion of the mean- _

ing of the words ‘‘direct work’? which appear in

subsection (g): of section 1 thereof, said section -

then reading as follows:

(g) Loans or. grants, or both, for projects

of States’ Territories, possessions, includ-

ing subdivisions and agencies thereof, and

self-liquidating projects of public bodies

thereof, municipalities, and the District of

Columbia; where not less than one-third

a of the loan or the-grant or he aggregate

: théxeof is for expenditureséfor direct work,

$900,000,000 ;

The position of Senator Giass, Chairman of the

Senate. Appropriations Committee and one of the

managers on the part of the Senate in the confer- _

ence, as to the meaning of these words, is indicated

_ by the following colloquy between him and Senator

Copeland pn the floor of the Senate, which appears

in the Congressional Record (79 Cong. Rec., 4746) :

Mr. Guass. Mr. President, section 3 of the

joint resolution, as it went to conference,

was wholly an insertion by the Senate it-

self; no word of it was in the joint resolu-

tion as passed by the House; but the House

conferees undertook to alter that provision

of the joint resolution in various respects,

and, with the assent of the Senate conferees,

succeeded in doing so.

At the last, having their attention drawn

to the fact tha under the. section as it stood

the entire amount of $900,000,000, with such

addition as, the President might please to

} make to the amount, in his discretion, under

W\ . the 20 percent permission, might ‘be ex-

pended without employing a single human

-being in addition to those already now em-

ployed, the Senate conferees undertook to

. . write into the provision a requirement that

' this money should not be loaned to States,

; municipalities, and subdivisions of States or

the District of Columbia unless the project

for which the money was loaned involved

- the expenditure of one-third of the amount

for labor.

As I stated in my letter to the Secretary, |

he has fallen into the error, which has been .

spread broadcast in the Washington news-

papers, of asserting that the zneasure’ re-

. .

Be le Soe ee ee . . ¥

87 re

quires that one-third of the labor shall be

done on the site of the project. There is not

a word or sentence in the report of the con-

. ferees which justifies any such assumption.

~On the contrary, the conferees took the view

that any work entering imto a given project

for which any part of the $900,000,000

-_ should be loaned should be counted in esti-

mating the one-third required to be ex-

pended on direct labor,.*: r

In order to make syifé that that was a cor-

rect interpretatiop of the provision, the con-

-ferees asked the Comptroller General to

come before them, to examine the provision,

anid to give his interpretation of it. He told

us that the interpretation of the Senate con-

ferees was his interpretation and that he —

should feel obligéd so to rule in any matter

that might come before him for decision.

Mr. CopeLann. Mr. President—— | 4

The PresipeENT. pro tempore. Does the

Senator from Virginia yield to the Senator

from New York? .

Mr. Guass. Certainly. .

Mr. CopeLann. The Senator from Vir-

ginia might state also that, while it was pro-

posed by someone in the conference that the

language should be further restricted to re-

quire one-third of the work to be done at

the site, the proposal was overwhelmingly

“thrown out of the window.” -,

Mr. Guass. Yes. To show that the Senate

conferees had not in mind in the text of th

report or in thé spirit of it to require that

the one-third of the direct work should ap--

ply to the site of the project, that proposal

was made and almost unanimously rejected

by the conferees. The purpose of the con-

ferees was to require that when any part of

the $900,000,000, plus whatever might be

ss) 88

added to it, should be doaned to a State or

‘ eommunity or subdivision of a State for a

“project, the project must involve enough .

work to consumg one-third of the loan. |

-As I stated in my letter to the Secretary,

for example, if a waterworks plant should

‘be erected out4of money-loaned from the

$900, 000,000, not only must the work on the

site make upia part of the one-third expendi-

ture, but.all the work on a motor be manu-

| factured a thousand miles away or on other

machinery manufactured far away, and ie

work involved in the transportation and th

_ . handling of the machinery that related itsel

—~ to the particular project for: which the

amount should be loaned would be counted.

Because of the uncertainty as to the meaning of

the words ‘direct work”’, the bill was sent back

to conference. . In conference subsection (g) of

, section 1 was changed to read as it now does, and

‘Congressman Buchanan, Chairman of the House

Appropriations Committee, and one of the man-

agers on-the part of the House in such conference,

' made the following official ’ statement on the floor

of the House as-to the meaning of the words ‘‘ work

under each particular i haa (79. Cong. Ree.

5145) : |

The expression “work under each particular

project” includes not only work done at the site

of the project but work which may properly be

_ called, “indirect” work, for example, the work

- which is created by the manufacturer and produc- |

-tion of mate and in the transportation of

such mater. to the site of the project.

3 aan jf

TH Provision RELATING TO THE PuBLIC WORKS

ADMINISTRATION CONTAINED IN THE, First. DE-

FICIENCY APPROPRIATION AcT, FiscaL YEAR 1936;

DEBATES THEREON; AND STATEMENT BY THE

CHAIRMAN OF THE House CoMMITTEE ON APPRO-

-PRIATIONS IN ExPLANATION OF THE PROVISION

The following provision relating to the Public .

Works Administration is.contained in Title IT of

the First Deficiency Appropriation Act, fiscal year

. 1936, and is the basis of the contemplated public

works program:, é :

In order to inérease employment-by pro- .

- viding for useful public-works projects of

the kind and character for which the Fed-

eral Emergency Administrator of Public

Works: (hereinafter called the Administra-

tor) has heretofore made loans or grants

pursuant to title II of the National Indus-

_ trial Recovery Act or the Emergency Relief

‘Appropriation Act of 1935, the Administra-

tor may, upon the direction of the President, —

use not to exceed $300,000,000 from funds

on hand or to be received from the sale of

securities, for the making of grants to aid

in the financing of such projects: Provided,

That no part of the sum made available by

this paragraph’ shall be granted for any

project unless, in the determination of the

Administrator, the completion thereof can

be substantially accomplished prior to July .

- 1, 1938, and adequate provision has been

made or is assured for financing such part

of the entire cost thereof as is not to be sup- .

plied through the Federal Emergency Ad-

ministration of Public Works: Provided

further, That this limitation upgn time shall

{

_ not apply to any project enjoined in any

Federal or State court: Provided further,

‘That in no ease shall the amount of the grant

~* exceed 45 percent of the cost of the project.

Nothing herein shall be construed to increase

the amount of notes, bonds, debentures, and

other such obligations which the Reconstruc-

tion Finance Corporation is authorized and

empowered under existing law to issue and

to have outstanding at any one time,«and

nothing herein shall be construed to limit |

or curtail in any way any powers which the

Federal Emergency Administration of Pub-

lic Works or the Administrator is now au-—

thorized to ex ‘rcise.

Originally the bill contained a proviso that

money should not be granted if the project could

not be completed prior to July 1; 1937. That was

’ amended to extend the period to July 1, 1938.

Subsequently there was inserted the proviso that

the limitation upon’ time should not apply to any

project enjoined in any federal or state court. The

following debates in the Senate with reference to

those amendments show that there was clearly in

mind competing municipal electric power projects:

_* Mr. Norris. - Let me suggest to the Senator

from Kentucky, when he modifies his amend- .

ment by inserting ‘‘1938”’ instead of ‘‘1937,”’

that many of the projects are now held up

by injunctions which,are pending. As to

some of them the injunctions will not be

-disposed of in time to enable them to avail

themselves of the. grant.

Mr. BaRkLEy. I have in mind a city whose

council called an election to vote bonds to

comply with the requirements of the Gov-

ernment in order to build a waterworks

plant. An injunction was obtained against

‘the election, and the election has not as yet -

been held because the case has not been de-

cided. Certainly another yvear is ngt too

much to ask in behalf of the community

restricted in such.a way. ~~

Mr. Norris. I have in mind the case of Jackson-

ville, Ill. Bonds were voted after full discussion

it was a question of constructing 4 municipal

electric-light plant. The power interests ob-

tained an injunction after the bonds had been —

- Mr. McKettar. My. President, immedi-

ately after the date ‘‘1938,’’ I propose to

insert the following:

-“ Provided, That this limitation shall not

apply to auy project that has been enjoined

in any Federal or State court.”’ —

The reason for offering this limitation is

that many injunctions have already been

granted, and it would be unfair and unjust

to deprive the particular communities where

that has been done from receiving this relief. »

The Presipine OrFicer. The Senator from

Tennessee offers an amendment to come at

the end of the amendment offered by the

Senator from Colorado, which will be stated.

The Cuter CLERK. It is proposed to insert

the following after the amendment to the

amendment just agreed to:

‘‘¢ Pravided, That this limitation shall not

apply to any project that has been enjoined

in any Federal or State Court.”’

Mr. Boran. Mr. President, what is the

effect of the amendment?

Mr. McKellar. I will give an illustration. The

_ city of Knoxville, Tenn., applied for a loan and a

grant to build an electric light plant, and they

were enjoined by a private company. If the

limitation as carried in the bill shall continue in

force—and it will be in force, of course, unless

aw a anette

_ the injunction is dissolved in time enough to per-

mit them to build the plant—they cannot build —

_ the plant at all. It might be held up on appeal,

so that Knoxville would be deprived entirely of

the relief. .

Mr. Glass. Has the plant been let to contract?

Mr. McKellar. No, the plant has not been let

to contract; before that could be done, the in-

junction was issued. There are a number of such

cases, and it seems to be manifestly fair and just

that the limitation should. not apply to cases of

that kind.

Mr. BaRKLEY Mr. President, the amend-

ment simply limits the expiration of the

time ?

Mr. ee That is all. I ask fora

vote on the amendment.

The PresipING OFFICER. The question is

on agreeing to the amendment offered by the

Senator from Tennessee to ‘the amendment

of the committee.

The amendment to the amendment was

agreed to. [Cong. Rec. 8499-8500. ]

The following statement was submitted by the

Chairman of the House Committee on Appropria-

tions and read into the record by the Clerk of the

House in explanation of the above-quoted provision

relating to the Public Works Administration for

the purpose of declaring the intention of the Con-.

gress in enacting such provision (Congressional

Record, June 17, 1936, House of Representatives, —

page 9889) (80 Cong. Ree. 9791) : |

RE FIRST DEFICIENCY APPROPRIATION BILL, FIS-

CAL YEAR 1986, INSOFAR AS IT RELATES TO THE

"PUBLIC. WORKS ADMINISTRATION

The bill as it passed the House of Rep-

resentatives contained no provision concern-

ing the Public Works Administration. The

_ Senate added a paragraph which authorized

the. Federal Emergency Administrator of

. Public Works, upon the direction of the -

President, to use not to exceed $300,000,000

from funds on hand, or to be received from.

the sale of securities, for the making of

grants to aid in the financing of projects ca-

pable of being substantially completed, in

the determination of the Administrator, not

later than June 30, 1938. The amount of —

grant which could be made for any project

was limited to 45 percent. >

' The purpose of this provision is to per-

mit the Federal Emergency: Administrator

of Public Works to use the cash and credits

~ now in the Public Works Administration

revolving fund for an additional public-

works program to supplement .the work-

relief program to be carried on. Since,

under existing law, the moneys in the Public

Works Administration revolving fund are

available only for loans, for the past year

the Public Works Administration has been

making loans from this revolving fund and

grants from rescinded allotments made

from the appropriations to carry out title

II of the National Industrial Recovery Act -

and from the $345,000,000 allocated to the

Public Works Administration by the Presi-

- dent from the $4,880,000,000 appropriated to

carry out the Emergency Relief Appropria-

tion Act of 1935. |

The provision added by the Senate is not

- intended to disturb the use of the revolving

fund for such loans as are authorized under

Public, No. 412, Seventy-third Congress, and

under the Emergency Relief Appropriation

Act off1935, but it confers supplemental and

‘additional powers upon the Administrator

and does not curtail any of his present

powers or functions.

The Senate amendment contemplates that

the Public Works Administration will make

loans for non-Federal publie-works projects

in the amount of 55 percent of the cost of the

project out of its revolving loan fund and

will supply the remaining 45 percent as an

outright grant. In cases where applicants

_ are able to provide their share of the cost of —

tie projects from the sale of municipal -

bonds on the open market, only a grant will

-be made by the Public Works Administra-

tion.

The first change which the conferees have

made to the Senate amendment has been the

deletion in the first and second lines of su-

perfluous language relative to relief and

work relief so as to make perfectly clear that

the purpose of the paragraph is to enable the

~ Public Works Administration to follow a

well-beaten path by providing aid in financ-

ing a non-Federal public-work program.

_ This provision in the Senate amendment is

also intended to serve as a standard ‘for

guiding the Administrator in the selection

of types of projects to be financed under the

~ amendment.

Another change made by the conferees in

the Senate am ndment has been to rephrase

the limitation on the time within. which. it is

estimated that a project will be completed

‘in order that it may be eligible for a grant

under the.bill. The purpose of this change

is to make clear that no part of the funds

made available by this paragraph shall. be

granted for any project unless the Admin-:

istrator has determined that the completion

of the project can be substantially accom-

plished, in his opinion, prior to July 1, 1938,

and also to prohibit the use of any ‘funds

under this paragraph to“finance any project

unless, jn the judgment of the Adminis-

trator, the conten has on hand or is able

to f ap gy Snot rT sys it =

provide e of the 0 project: |

7 It is exp. that ander this provision the

Public Works ae ti Doe will be en-

| abled ing to carry ona 000,000 non-F'ederal

lic W, rogram. - It is contemplated -

iat this wil done by the Public Works

, inistration agreeing to make grants an

loans from its unobligated funds on_hand

and against commitments from the Recon-

sfruction Finance Corporation. The Public

orks Administration on will be able to enter

into a contract to make a gr or to pur-

chase municipal honds in a ce upon a

oe by the Seneca imuance

; oration to purchase bonds from the .

| Publ orks Administration in a like

ple :

_. Under existing law the only limitation is

- the limitation upon the amount of bonds

purehased from the Pyblie Works Admin-

- istration which the Heconstrnction | inance

Corpcration may hold at one time.

This amount is limited to {000,000 by

_ Public, No. 412, Seventy-third Congress. It

is an that through the cooperation

of the truction F ¥ Rorporation

it will Je for the orks Ad-

ministration to use from its ing Tu

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