The United States Supreme Court in the Vindicator-Chestatee case (284 U. S. 231), rendered December 7, 1931, held that March 2, 1919, was the date to which interest was allowable for money borrowed and lost in producing and preparing to produce chrome, manganese, pyrites, and tungsten under the war minerals relief act.

The effect of this bill, if enacted into law, will be to extend the date from March 2, 1919, to the date of the approval of this act, for the payment of interest.

The records of the Department disclose that 126 cases already given awards and 44 cases certified by the Supreme Court of the District of Columbia to the Secretary of the Interior for review, and 161 cases awaiting action of the Supreme Court of the District of Columbia, making a total of 351 cases, would be subject to review by the Secretary of the Interior upon petition by the claimant under authority of this bill.

There is no way of reasonably approximating the total amount of interest losses involved by the enactment of this bill into law, for the reason that the only evidence before me at this time is that in the cases upon which awards have been made.

In many of the awards made by my predecessor, since the amendment of February 13, 1929, the claimants have accepted such awards in "complete and final settlement of their rights under the war minerals relief act." One exception to this is the case of the Chestatee Pyrites & Chemical Corporation in which awards to the amount of $829,850 have been made, of the last of which, on February 23, 1933, acceptance was made by claimant "as payment of its losses in full to March 2, 1919, as stated in the award." From our records in the case the approximate interest which would be claimed under the proposed act, if passed as to April 1, 1934, would be $608,221.24.

In all awards which I have made under the war minerals relief act, with one exception, the claimant has signed a release in complete and final settlement of all rights under the act.

The exception is the case of the Hanna Minerals Co. to which awards have been rendered in the amount of $314,924.31. The approximate interest which would be claimed under the proposed act, if passed as of April 1, 1934, would be $324,367.68.

A decision by the Court of Appeals of the District of Columbia, February 19, 1934, in the case of Harold L. Ickes, Secretary of the Interior v. Cuyuna Mining & Investment Co., holds that awards under the war minerals relief act are purely in the nature of a gratuity by the Government and are not legal claims, nor does the act create in the claimants any vested legal right.

I am not at this time able to give your committee the effect which this decision will have on the 161 cases pending in the Supreme Court of the District of Columbia.

It may be a timely observation to say that all these claims are based upon World War operations during the period between April 6, 1917, and November 12, 1918, and that good administration would require that complete and final settlement should be made in all claims at the earliest opportunity, consistent with justice and equity.

I therefore find myself disposed to object to the passage of this bill.

Sincerely yours,

74TH CONGRESS 1st Session

SENATE

{

REPORT No. 250

EMERGENCY RELIEF APPROPRIATION ACT OF 1935

MARCH 4 (calendar day, March 5), 1935.—Ordered to be printed

Mr. GLASS, from the Committee on Appropriations, submitted the following

REPORT

[To accompany H. J. Res. 117]

The Committee on Appropriations, to whom was referred the joint resolution (H. J. Res. 117) making appropriations for relief purposes, report the same to the Senate with various amendments, and present herewith information relative to the changes made:

SECTION 1

It is recommended by the committee that the following language be stricken from section 1 of the resolution: "protect and to promote the general welfare, by (1) providing relief from the hardships attributable to wide-spread unemployment and conditions resulting therefrom, (2) relieving economic maladjustments, (3) alleviating distress, and/or (4) improving living and working conditions," and the words "provide relief and work relief" inserted in lieu thereof.

It is also recommended by the committee that the following language be stricken from the resolution: "in such manner, and for such purposes and/or such projects, Federal or non-Federal, as shall be adapted to the accomplishment of any one or more of the objectives specified in clause (1), (2), (3), or (4)."

It is recommended by the committee that the following provision allocating the $4,000,000,000 appropriated by the joint resolution be inserted:

: Provided, That except as to such part of the appropriation made herein as the President may deem necessary for continuing relief as authorized under the Federal Emergency Relief Act of 1933, as amended, this appropriation shall be available for the following classes of projects, and the amounts to be expended for each class shall not, except as hereinafter provided, exceed the respective amounts stated, viz: highways, roads, streets, and grade-crossing elimination, $800,000,000; rural rehabilitation

and relief in stricken agricultural areas, $500,000,000; rural electrification, $100,000,000; housing, $450,000,000; projects for professional and clerical persons, $300,000,000; Civilian Conservation Corps, $600,000,000; public projects of States or political subdivisions thereof, $900,000,000; sanitation, prevention of soil erosion, reforestation. forestation, flood control, and miscellaneous projects, $350,000,000: Provided further, That not to exceed twenty percentum of the amoun! herein appropriated may be used by the President to increase any one or more of the foregoing limitations if he finds it necessary to do so in order to effectuate the purpose of this joint resolution.

It is recommended by the committee that the following be stricken from the joint resolution:

"The specific powers hereinafter vested in the President shall not be construed as limiting the general powers and discretion vested in him by this section."

It is recommended by the committee that the following be inserted in the joint resolution:

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 necessary equipment by farmers, farm tenants, croppers, or farm laborers. Such loans shall be made on such terms as the President shall prescribe and shall be repaid in equal annual installments, or in such other manner as the President may determine.

SECTION 2

It is specifically provided in the joint resolution as reported to the Senate that the appropriation shall be available for use "only" in the United States and its Territories and possessions, exclusive of the Philippine Islands.

It is also affirmatively provided that the provisions of section 3709 of the Revised Statutes (requiring advertising and competitive bidding) shall apply to purchases made or services procured when the aggregate amount involved exceeds $300.

SECTION 3

It is recommended by the committee that the provision authorizing the fixing of compensation of officers and employees appointed under this section without regard to the Classification Act of 1923, as amended, be stricken out.

SECTION 4

It is recommended by the committee that the following section be stricken from the joint resolution:

"SEC. 4. In carrying out the provisions of this joint resolution the President is authorized to such extent and in such manner as he finds and prescribes as necessary to the efficient and coordinated administration of the powers exercisable under this joint resolution,

to

"(a) Establish and prescribe the duties and functions of governmental agencies (including corporations with corporate authority only as approved by the President and within the scope of this joint resolution);

"(b) Utilize and prescribe the duties and functions of any governmental agency (including a corporation);

"(c) Consolidate, redistribute, abolish, or transfer the functions and/or duties of, and transfer the property and/or personnel of, any emergency governmental agency (including a corporation); and upon the transfer to another agency and/or the abolition of all the functions and duties of any agency, such agency shall cease to exist; and "(d) Delegate the powers conferred on him under this joint resolution to any governmental agency (including a corporation)."

SECTION 5

It is recommended by the committee that section 5 be stricken from the joint resolution, except paragraph (c), which is made a separate section amended to read as follows:

SEC. 4. 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 interest therein, and improve, develop, grant, sell, lease (with or without the privilege of purchasing), or otherwise dispose of any such property or interest therein.

SECTION 6

Section 6 becomes section 5, and the committee recommends that the maximum fine for violation of rules or regulations of the President be reduced from $5,000 to $1,000.

NEW SECTION 6

It is recommended by the committee that the following new section relating to rates of wages be inserted:

SEC. 6. The President is authorized to fix the rates of wages of all persons compensated out of the funds appropriated by this joint resolution and may fix different rates for various types of work, which rates need not be uniform throughout the United States.

In the event the President, or such official or agency of Government as he may select, shall determine after an investigation that the rate of wages paid is affecting adversely or is likely to decrease the prevailing rates of wages paid for any work of a similar nature in any city, town, village, or other civil division of the State in which the work is located, or in the District of Columbia, the President, or the official or agency designated by him, shall immediately fix the rate of wages at an amount not less than the prevailing rate of wages paid for work of a similar nature in such locality.

Any and all contracts which may be entered into under the authority contained in this resolution shall contain stipulations which will provide for the accomplishment of the purposes of this section.

NEW SECTION 7

It is recommended by the committee that a new section relating to utilization of facilities of private enterprise be inserted, as follows:

8. Repts., 74-1, vol. 1-20

SEC. 7. Wherever practicable in the carrying out of the provisions of this joint resolution, full advantage shall be taken of the facilities of private enterprise.

NEW SECTION 8

It is recommended by the committee that a new section relating to the manner in which mechanical sanitary work shall be carried out, be inserted as follows:

SEC. 8. On all building construction work or projects undertaken under and by virtue of the authority granted in this joint resolution, all mechanical sanitary work, which in the interest of public health is ordinarily regulated or controlled by law, shall be let separately and by contract, and awarded to the lowest qualified bidder.

NEW SECTION 9

It is recommended by the committee that the following penalty provision be inserted:

SEC. 9. Any person who knowingly and with intent 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 thereto, any moneys appropriated by this joint resolution, or any services or real or personal property acquired thereunder, or who knowingly, by means of any fraud, force, threat, intimidation, or boycott, 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 assists in so doing, shall be deemed guilty of a misdemeanor and shall be fined not more than $2,000 or imprisoned not more than one year, or both.

NEW SECTION 10

It is recommended by the committee that a provision be inserted. requiring the carrying out of certain types of public-works projects by the appropriate permanent Government establishments having jurisdiction of such projects, as follows:

SEC. 10. Federal public-roads projects, rivers and harbors projects, reclamation projects, 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 having jurisdiction of such projects, and the performance of all contracts in connection with such projects shall be subject to the supervision and control of such departments or agencies.