Full text of Defense Production Act of 1950

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798

PUBLIC LAWS-CHS . 923, 924, 932-SEPT. 8, 1950

[64 STAT.

[CHAPTER 923]
September 8, 1950
[s .I . Res . 1631
[Public Law 772]

JOINT RESOLUTION
To designate the reservoir above the Baldhill Dam in North Dakota as Lake
Ashtabula

Resolved by the Senate and House of Representatives of the
United States o f America in Congress assembled, That the reservoir
located above the Baldhill Dam in North Dakota shall hereafter be
known as Lake Ashtabula, and any law, regulation, document, or
record of the United States in which such reservoir is designated
or referred to shall be held to refer to such reservoir under and by
the name of Lake Ashtabula.
Approved September 8, 1950 .
[CHAPTER 924]
September 8, 1960
[H. R . 8726)
[Public Law 773]

Tariff Act of 1930,
amendment .
46 Stat. 679.
19 U . S . C.°1201,
par. 1726 .

AN ACT
To amend the Tariff Act of 1930 to exempt from duty sound recordings for news
broadcasts and in connection with moving-picture news reels .

Be it enacted by the Senate and House o f Representatives o f the
United States o f America in Congress assembled, That paragraph
1726 of the Tariff Act of 1930, as amended, is amended by inserting
after "newspapers," the following : "sound recordings transcribed or
recorded abroad for radio or television news broadcasts in the United
States, or suitable for use in reproducing sound in connection with
moving-picture news reels".
SEC . 2. The amendment made by this Act shall apply to articles
entered for consumption or withdrawn from warehouse for consumption on or after the day following the date of enactment of this Act .
Approved September 8, 1950 .
[CHAPTER 932]

September 8, 1950
[H. R . 9176]
[Public Law 774]

Defense Production
Act of 1950 .

AN ACT
To establish a system of priorities and allocations for materials and facilities,
authorize the requisitioning thereof, provide financial assistance for expansion
of productive capacity and supply, provide for price and wage stabilization,
provide for the settlement of labor disputes, strengthen controls over credit,
and by these measures facilitate the production of goods and services necessary
for the national security, and for other purposes .

Be it enacted b y the Senate and House o f Representatives o f the
United States of America in Congress assembled, That this Act,
divided into titles, may be cited as "the Defense Production Act of
1950".
TABLE OF CONTENTS
Title
Title
Title
Title
Title
Title
Title

I . Priorities and allocations .
II . Authority to requisition .
III . Expansion of productive capacity and supply.
IV . Price and wage stabilization .
V. Settlement of labor disputes .
VI . Control of consumer and real estate credit .
VII . General provisions .
DECLARATION OF POLICY

SEC. 2. It is the policy of the United States to oppose acts of aggression and to promote peace by insuring respect for world law and the
peaceful settlement of differences among nations . To that end this
Government is pledged to support collective action through the United
Nations and through regional arrangements for mutual defense in

64 STAT.]

799

81sT CONG ., 2D SESS .-CH . 932-SEPT. 8, 1950

conformity with the Charter of the United Nations . The United
States is determined to develop and maintain whatever military and
economic strength is found to be necessary to carry out this purpose .
Under present circumstances, this task requires diversion of certain
materials and facilities from civilian use to military and related purposes . It requires expansion of productive facilities beyond the levels
needed to meet the civilian demand. In order that this diversion and
expansion may proceed at once, and that the national economy may
be maintained with the maximum effectiveness and the least hardship
normal civilian production and purchases must be curtailed and
redirected.
It is the objective of this Act to provide the President with authority
to accomplish these adjustments in the operation of the economy .
It is the intention of the Congress that the President shall use the
powers conferred by this Act to promote the national defense, by
meeting, promptly and effectively, the requirements of military
programs in support of our national security and foreign policy
objectives, and by preventing undue strains and dislocations upon
wages, prices, and production or distribution of materials for civilian
use, within the framework, as far as practicable, of the American
system of competitive enterprise .

59 Stat. 1031 .

TITLE I-PRIORITIES AND ALLOCATIONS
SEc . 101 . The President is hereby authorized (1) to require that
performance under contracts or orders (other than contracts of
employment) which he deems necessary or appropriate to promote
the national defense shall take priority over performance under any
other contract or order, and, for the purpose of assuring such priority,
to require acceptance and performance of such contracts or orders in
preference to other contracts or orders by any person he finds to be
capable of their performance, and (2) to allocate materials and
facilities in such manner, upon such conditions, and to such extent
as he shall deem necessary or appropriate to promote the national
defense.
SEc. 102 . In order to prevent hoarding, no person shall accumulate
(1) in excess of the reasonable demands of business, personal, or home
consumption, or (2) for the purpose of resale at prices in excess of
prevailing market prices, materials which have been designated by the
President as scarce materials or materials the supply of which would
be threatened by such accumulation . The President shall order published in the Federal Register, and in such other manner as he may
deem appropriate, every designation of materials the accumulation
of which is unlawful and any withdrawal of such designation . This
section shall not be construed to limit the authority contained in section
101 of this Act.
SEc. 103. Any person who willfully performs any act prohibited,
or willfully fails to perform any act required, by the provisions of
this title or any rule, regulation, or order thereunder, shall, upon conviction, be fined not more than $10,000 or imprisoned for not more
than one year, or both .

Prevention of hoard .
ing.

Penalty .

TITLE II-AUTHORITY TO REQUISITION
SEc . 201 . (a) Whenever the President determines (1) that the
use of any equipment, supplies, or component parts thereof, or materials or facilities necessary for the manufacture, servicing, or operation of such equipment, supplies, or component parts, is needed for
the national defense, (2) that such need is immediate and impending
and such as will not admit of delay or resort to any other source of

Requisitioning of
property.

S00

Compensation for
property.

1 Stat. 21 .

Return of acquired
property.

Disposal of personal
property.

PUBLIC LAWS-CH. 932-SEPT. 8, 1950

[64 STAT.

supply, and (3) that all other means of obtaining the use of such
property for the defense of the United States upon fair and reasonable
terms have been exhausted, he is authorized to requisition such property or the use thereof for the defense of the United States upon
the payment of just compensation for such property or the use thereof
to be determined as hereinafter provided . The President shall
promptly determine the amount of the compensation to be paid for
any property or the use thereof requisitioned pursuant to this title
but each such determination shall be made as of the time it is requisitioned in accordance with the provision for just compensation in
the fifth amendment to the Constitution of the United States . If
the person entitled to receive the amount so determined by the President as just compensation is unwilling to accept the same as full and
complete compensation for such property or the use thereof, he shall
be paid promptly 75 per centum of such amount and shall be entitled
to recover from the United States, in an action brought in the Court
of Claims or, without regard to whether the amount involved exceeds
$10,000, in any district court of the United States, within three years
after the date of the President's award, an additional amount which,
when added to the amount so paid to him, shall be just compensation .
(b) Whenever the President determines that any real property
acquired under this title and retained is no longer needed for the
defense of the United States, he shall, if the original owner desires
the property and pays the fair value thereof, return such property
to the owner . In the event the President and the original owner
do not agree as to the fair value of the property, the fair value shall
be determined by three appraisers, one of whom shall be chosen by
the President, one by the original owner, and the third by the first
two appraisers ; the expenses of such determination shall be paid in
equal shares by the Government and the original owner .
(c) Whenever the need for the national defense of any personal
property requisitioned under this title shall terminate, the President
may dispose of such property on such terms and conditions as he shall
deem appropriate, but to the extent feasible and practicable he shall
give the former owner of any property so disposed of an opportunity
to reacquire it (1) at its then fair value as determined by the President,
or (2) if it is to be disposed of (otherwise than at a public sale of
which he is given reasonable notice) at less than such value, at the
highest price any other person is willing to pay therefor : Provided,
That this opportunity to reacquire need not be given in the case of
fungibles or items having a fair value of less than $1,000 .
TITLE III-EXPANSION OF PRODUCTIVE CAPACITY
AND SUPPLY

Guaranteeing agencies.

SEc. 301 . (a) In order to expedite production and deliveries or
services under Government contracts, the President may authorize,
subject to such regulations as he may prescribe, the Department of
the Army, the Department of the Navy, the Department of the Air
Force, the Department of Commerce, and such other agencies of the
United States engaged in procurement for the national defense as he
may designate (hereinafter referred to as "guaranteeing agencies"),
without regard to provisions of law relating to the making, performance, amendment, or modification of contracts, to guarantee in whole or
in part any public or private financing institution (including any
Federal Reserve bank), by commitment to purchase, agreement to share
losses, or otherwise, against loss of principal or interest on any loan,
discount, or advance, or on any commitment in connection therewith,

64 STAT.]

SlaT CONG .,

2n SESS .-GH.

932-SEPT. 8, 1950

which may be made by such financing institution for the purpose of
financing any contractor, subcontractor, or other person in connection
with the performance, or in connection with or in contemplation of
the termination, of any contract or other operation deemed by the
guaranteeing agency to be necessary to expedite production and
deliveries or services under Government contracts for the procurement of materials or the performance of services for the national
defense .
(b) Any Federal agency or any Federal Reserve bank, when designated by the President, is hereby authorized to act, on behalf of any
guaranteeing agency, as fiscal agent of the United States in the making
of such contracts of guarantee and in otherwise carrying out the purposes of this section . All such funds as may be necessary to enable
any such fiscal agent to carry out any guarantee made by it on behalf
of any guaranteeing agency shall be supplied and disbursed by or
under authority from such guaranteeing agency. No such fiscal agent
shall have any responsibility or accountability except as agent in
taking any action pursuant to or under authority of the provisions
of this section . Each such fiscal agent shall be reimbursed by each
guaranteeing agency for all expenses and losses incurred by such fiscal
agent in acting as agent on behalf of such guaranteeing agency, including among such expenses, notwithstanding any other provision of law,
attorneys fees and expenses of litigation .
(c) All actions and operations of such fiscal agents under authority
of or pursuant to this section shall be subject to the supervision of the
President, and to such regulations as he may prescribe ; and the
President is authorized to prescribe, either specifically or by maximum
limits or otherwise, rates of interest, guarantee and commitment fees,
and other charges which may be made in connection with loans, discounts, advances, or commitments guaranteed by the guaranteeing
agencies through such fiscal agents, and to prescribe regulations governing the forms and procedures (which shall be uniform to the extent
practicable) to be utilized in connection with such guarantees .
(d) Each guaranteeing agency is hereby authorized to use for the
purposes of this section any funds which have heretofore been appropriated or allocated or which hereafter may be appropriated or allocated to it, or which are or may become available to it, for such purposes or for the purpose of meeting the necessities of the national
defense .
SEC . 302. To expedite production and deliveries or services to aid in
carrying out Government contracts for the procurement of materials
or the performance of services for the national defense, the President may make provision for loans (including participations in, or
guarantees of, loans) to private business enterprises (including
research corporations not organized for profit) for the expansion of
capacity, the development of technological processes, or the production
of essential materials, including the exploration, development, and
mining of strategic and critical metals and minerals . Such loans may
be made without regard to the limitations of existing law and on such
terms and conditions as the President deems necessary, except that
financial assistance may be extended only to the extent that it is not
otherwise available on reasonable terms .
SEC. 303. (a) To assist in carrying out the objectives of this Act,
the President may make provision (1) for purchases of or commitments to purchase metals, minerals, and other raw materials, including
liquid fuels, for Government use or for resale ; and (2) for the
encouragement of exploration, development, and mining of critical
and strategic minerals and metals : Provided, however, That purchases
9835¢-51-rm . i-51

Fiscal agent.

Rates of interest,
etc.

Loans for expansion
of productive capacity .

Purchases of raw
materials, etc.

Critical and strategic minerals and
metals .

802
Agricultural commodities.

63 Stat.1055 .
7 U . S . C ., Sup . III,
° 1427.

Procurement power.

Installation of additional equipment, etc .

Authority to create
new agencies, etc .

Authority to borrow from Treasury.

40 Stat . 288 .
31 U . S . C . ° 774 (2) ;
Sup . III, ° 760 et seq.

Appropriation authorized .

PUBLIC LAWS-CH. 932-SEPT. 8, 1950

[64 STAT.

for resale under this subsection shall not include agricultural commodities except insofar as such commodities may be purchased for
resale for industrial uses or stockpiling, and no agricultural commodity
shall be sold for such purposes at less than the higher of the following
(i) the current market price for such commodity, or (ii) the minimum
sae price established for agricultural commodities owned or controlled by the Commodity Credit Corporation as provided in section
407 of Public Law 439, Eighty-first Congress .
(b) Subject to the limitations in subsection (a), purchases and
commitments to purchase and sales under such subsection may be
made without regard to the limitations of existing law, for such quantities, and on such terms and conditions, including advance payments,
and for such periods, as the President deems necessary, except that
purchases or commitments to purchase involving higher than currently prevailing market prices or anticipated loss on resale shall
not be made unless it is determined that supply of the materials could
not be effectively increased at lower prices or on terms more favorable
to the Government, or that such purchases are necessary to assure
the availability to the United States of overseas supplies .
(c) The procurement power granted to the President by this section shall include the power to transport and store, and have processed
and refined, any materials procured under this section .
(d) When in his judgment it will aid the national defense, the
President is authorized to install additional equipment, facilities,
processes, or improvements to plants, factories, and other industrial
facilities owned by the United States Government, and to install
Government-owned equipment in plants, factories, and other industrial facilities owned by private persons.
SIC. 304. (a) For the purposes of sections 302 and 303, the
President is hereby authorized to utilize such existing departments,
agencies, officials, or corporations of the Government as he may
deem appropriate, or to create new agencies (other than corporations) .
(b) Any agency created under this section, and any department,
agency, official, or corporation utilized pursuant to this section is
authorized, subject to the approval of the President, to borrow from
the Treasury of the United States, such sums of money as may be
necessary to carry out its functions under sections 302 and 303 :
Provided, That the total amount borrowed under the provisions
of this section by all such borrowers shall not exceed an aggregate
of $600,000,000 outstanding at any one time . For the purpose of
borrowing as authorized by this subsection, the borrower may issue
to the Secretary of the Treasury its notes, debentures, bonds, or
other obligations to be redeemable at its option before maturity in
such manner as may be stipulated in such obligations . Such
obligations shall bear interest at a rate determined by the Secretary
of the Treasury, taking into consideration the current average rate
on outstanding marketable obligations of the United States as of
the last day of the month preceding the issuance of the obligations .
The Secretary of the Treasury is authorized and directed to purchase
such obligations and for such purpose the Secretary of the Treasury
is authorized to use as a public-debt transaction the proceeds from
the sale of any securities issued under the Second Liberty Bond Act,
as amended, and the purposes for which securities may be issued
under the Second Liberty Bond Act, as amended, are extended to
include any purchases of obligations hereunder .
(c) In addition to the sums authorized to be borrowed under
subsection (b), there is hereby authorized to be appropriated to carry
out the purposes of sections 302 and 303, such sums, not in excess
of $1,400,000,000, as may be necessary therefor .

64 STAT.]

81ST CONG., 2n SESS .-CH. 932-SEPT . 8, 1950

803

TITLE IV-PRICE AND WAGE STABILIZATION
SEC . 401 . It is the intent of Congress to provide authority necessary
to achieve the following purposes in order to promote the national
defense : To prevent inflation and preserve the value of the national
currency ; to assure that defense appropriations are not dissipated by
excessive costs and prices ; to stabilize the cost of living for workers
and other consumers and the costs of production for farmers and
businessmen ; to eliminate and prevent profiteering, hoarding, manipulation, speculation, and other disruptive practices resulting from
abnormal market conditions or scarcities ; to protect consumers, wage
earners, investors, and persons with relatively fixed or limited incomes
from undue impairment of their living standards ; to prevent economic
disturbances, labor disputes, interferences with the effective mobilization of national resources, and impairment of national unity and
morale ; to assist in maintaining a reasonable balance between purchasing power and the supply of consumer goods and services ; to
protect the national economy against future loss of needed purchasing
power by the present dissipation of individual savings ; and to prevent
a future collapse of values . It is the intent of Congress that the
authority conferred by this title shall be exercised in accordance with
the policies set forth in section 2 of this Act, and in particular with
full consideration and emphasis, so far as practicable, on the maintenance and furtherance of the American system of competitive enterprise, including independent small-business enterprises, the maintenance and furtherance of a sound agricultural industry, the maintenance and furtherance of sound working relations, including collective
bargaining, and the maintenance and furtherance of the American way
of life. Whenever the authority granted by this title is exercised, all
agencies of the Government dealing with the subject matter of this
title, within the limits of their authority and jurisdiction, shall
coo erate in carrying out these purposes .
Ec. 402 . (a) In order to carry out the objectives of this title, the
President may encourage and promote voluntary action by business,
agriculture, labor and consumers . In proceeding under this subsection
the President may exercise the authority to approve voluntary programs and agreements conferred on him under section 708, and may
utilize the services of persons and agencies as provided in section 710 .
(b) (1) To the extent that the objectives of this title cannot be
attained by action under subsection (a), the President may issue
regulations and orders establishing a ceiling or ceilings on the price,
rental, commission, margin, rate, fee, charge, or allowance paid or
received on the sale or delivery, or the purchase or receipt, by or to
any person, of any material or service, and at the same time shall issue
regulations and orders stabilizing wages, salaries, and other compensation in accordance with the provisions of this subsection .
(2) Action under this subsection may be taken either with respect
to individual materials and services and to individual types of employment, or with respect to materials, services, and types of employment
generally . A ceiling may be established with respect to an individual
material or service only when the President finds that (i) the price
of the material or service has risen or threatens to rise unreasonably
above the price prevailing during the period from May 24, 1950 to
June 24, 1950, (ii) such price increase will materially affect the cost of
living or the national defense, (iii) the imposition of such ceiling is
necessary to effectuate the purposes of this Act, (iv) it is practicable
and feasible to impose such ceiling, and (v) such ceiling will be generally fair and equitable to sellers and buyers of such material or
service and to sellers and buyers of related or competitive materials
and services.

Voluntary action.

Issuance of regula.
tions and orders es.
tablishing price ceilings, etc .

804
Wage stabilization.

Consideration of
comparable prices, etc .

Applicability of regulations, etc .

Restrictions.

PUBLIC LAWS-'CH . 032-SEPT. 8, `1950

[64 STAT.

(3) Whenever a ceiling has been imposed - with respect to a particular material or service, the President shall stabilize wages, salaries,
and other compensation in the industry or business producing the
material or performing the service .
(4) Whenever ceilings on prices have been established on materials
and services comprising a substantial part of all sales at retail and
materially affecting the cost of living, the President (i) shall impose
ceilings on prices and services generally, and (ii) shall stabilize wages,
salaries, and other compensation generally .
(5) In stabilizing wages under paragraph (3) of this subsection,
the President shall issue regulations prohibiting increases in wages,
salaries, and other compensation which he deems would require an
increase in the price ceiling or impose hardships or inequities on
sellers operating under the price ceiling .
(c) So far as practicable, in exercising the authority conferred in
this section, the President shall ascertain and give due consideration
to comparable prices, rentals, commissions, margins, rates, fees,
charges, and allowances, and to comparable salaries, wages, or other
compensation, which he finds to be representative of those prevailing
during the period from May 24, 1950, to June 24, 1950, inclusive, or,
in case none prevailed during this period or if those prevailing during
this period were not generally representative because of abnormal or
seasonal market conditions or other cause, then those prevailing on
the nearest date on which, in the judgment of the President, they are
generally representative . The President shall also give due consideration to the national effort to achieve maximum production in furtherance of the objectives of this Act. In determining and adjusting
ceilings on prices with respect to materials and services, he shall give
due consideration to such relevant factors as he may determine to be
of general applicability in respect of such material or service, including the following : Speculative fluctuations, general increases or
decreases in cost of production, distribution, and transportation, and
general increases or decreases in profits earned by sellers of the material or by persons performing the service, subsequent to June 24,
1950. In stabilizing and adjusting wages, salaries, or other compensation, the President shall give due consideration to such relevant
factors as he may determine to be of general applicability in
respect of such wages, salaries, or other compensation . Any regulation or order under this title shall be such as in the judgment of the
President will be generally fair and equitable and will effectuate the
purposes of this title, and shall be accompanied by a statement of
considerations involved in the issuance of such regulation or order .
The President, in establishing and adjusting ceilings with respect to
materials and services, and in stabilizing and adjusting wages, salaries,
and other compensation, shall make such adjustments as he deems
necessary to prevent or correct hardships or inequities .
(d) (1) Regulations and orders issued under this title shall apply
regardless of any obligation heretofore or hereafter incurred, except
as provided in this subsection ; but the President shall make appropriate provision to prevent hardships and inequities to sellers who
have bona fide contracts in effect on the date of issuance of any such
regulation or order for future delivery of materials in which seasonal
demands or normal business practices require contracts for future
delivery.
(2) No wage, salary, or other compensation shall be stabilized at
less than that paid during the period from May 24, 1950, to June
24, 1950, inclusive . No action shall be taken under authority of this
title with respect to wages, salaries, or other compensation which is
inconsistent with the provisions of the Fair Labor Standards Act of

64 STAT.]

805

81sT CONG ., 2n SESS .-CH . 932-SEPT . 8, 1950

1938, as amended, or the Labor Management Relations Act, 1947, or
any other law of the United States, or of any State, the District of
Columbia, or any Territory or possession of the United States .
(3) No ceiling shall be established or maintained for any agricultural commodity below the highest of the following prices : (i)
The parity price for such commodity, as determined by the Secretary
of Agriculture in accordance with the Agricultural Adjustment Act of
1938, as amended, and adjusted by the Secretary of Agriculture for
grade, location, and seasonal differentials, or (ii) the highest price
received by producers during the period from May 24, 1950, to June
24, 1950, inclusive, as determined by the Secretary of Agriculture
and adjusted by the Secretary of Agriculture for grade, location,
and seasonal differentials, or (iii) in the case of any commodity for
which the market was not active during the period May 24 to June
24, 1950, the average price received by producers during the most
recent representative period prior to May 24, 1950, in which the
market for such commodity was active as determined and adjusted
by the Secretary of Agriculture to a level in line with the level of
prices received by producers for agricultural commodities generally
during the period May 24 to June 24, 1950, and adjusted by the Secretary for grade, location, and seasonal differentials, or (iv) in the case
of fire-cured tobacco a price (as determined by the Secretary of
Agriculture and adjusted for grade differentials) equal to 75 per
centum of the parity price of Burley tobacco of the corresponding
crop, and in the case of dark air-cured tobacco and Virginia suncured tobacco, respectively, a price (as determined by the Secretary of
Agriculture and adjusted for grade differentials) equal to 66% per
centum of the parity price of Burley tobacco of the corresponding
crop. No ceilings shall be established or maintained hereunder for
any commodity processed or manufactured in whole or substantial
part from any agricultural commodity below a price which will reflect
to producers of such agricultural commodity a price for such agricultural commodity equal to the highest price therefor specified in this
subsection : Provided, That in establishing and maintaining ceilings
on products resulting from the processing of agricultural commodities, including livestock, a generally fair and equitable margin shall
be allowed for such processing . Whenever a ceiling has been established under this title with respect to any agricultural commodity,
or any commodity processed or manufactured in whole or in substantial part therefrom, the President from time to time shall adjust such
ceiling in order to make appropriate allowances for substantial reduction in merchantable crop yields, unusual increases in costs of production, and other factors which resultt from hazards occurring in connection with the production and marketing of such agricultural
commodity ; and in establishing the ceiling (1) for any agricultural
commodity for which the 1950 marketing season commenced prior
to the enactment of this Act and for which different areas have different periods of marketing during such season or (2) for any agricultural commodity produced for the same general use as a commodity
described in (1), the President shall give due consideration to affording equitable treatment to all producers of the commodity for which
the ceiling is being established . Nothing contained in this Act shall
be construed to modify, repeal, supersede, or affect the provisions of
the Agricultural Marketing Agreement Act of 1937, as amended, or
to invalidate any marketing agreement, license, or order, or any provision thereof or amendment thereto, heretofore or hereafter made
or issued under the provisions of such Act . Ceiling prices to producers for milk used for distribution as fluid milk in any marketing
area not under a marketing agreement, license, or order issued under

52 Stat. 1060; 61 Stat .
136.
29
S . 0 . ° 201 ;
Sup . III, $° 201 et seq.,
141 et seq.
Ceilings for agricultural commodities .

u.

52 Stat. 31 .
7 U . S . C . ° 1281;
Sup. III, ° 1282 et seq.
Ante, pp. 40, 42, 232.

Adjustments .

50 Stat . 246.
7 ti . S . C . ° 674; Sup.
III, ° 602 et seq .
Ante, p. 261 .
Producers for milk.

806
50 Stat. 246 .
U . S . C . ° 674,

r

Sup . III, ° 602 et seq .
Ante, p . 261.

Restriction on ewerelse of authority .

Exemptions by
regulation .

Change in business
practice, etc .

Trade and brand
names, etc .

PUBLIC LAWS-CH. 932-SEPT. 8, 1950

t64 STAT.

the Agricultural Marketing Agreement Act of 1937, as amended, shall
not be less than (1) parity prices for such milk, or (2) prices which in
such marketing areas will bear the same ratio to the average farm price
of milk sold wholesale in the United States as the prices for such fluid
milk in such marketing areas bore to such average farm price during
the base period, as determined by the Secretary of Agriculture, whichever is higher : Provided, however, That whenever the Secretary of
Agriculture finds that the prices so fixed are not reasonable in view
of the price of feeds, the available supplies of feeds, and other economic conditions which affect market supply and demand for milk
and its products in any such marketing area, he shall fix such prices
as he finds will reflect such factors, insure a sufficient quantity of
pure and wholesome milk, and be in the public interest, which prices
when so determined shall be used as the ceiling prices to producers
for fluid milk in such marketing areas .
(e) The authority conferred by this title shall not be exercised with
respect to the following :
(i) Prices or rentals for real property ;
(ii) Rates or fees charged for professional services ;
(iii) Prices or rentals for (a) materials furnished for publication
by any press association or feature service, or (b) books, magazines,
motion pictures, periodicals, or newspapers, other than as waste or
scrap ; or rates charged by any person in the business of operating or
publishing a newspaper, periodical, or magazine, or operating a radiobroadcasting or television station, a motion-picture or other theater
enterprise, or outdoor advertising facilities ;
(iv) Rates charged by any person in the business of selling or
underwriting insurance ;
(v) Rates charged by any common carrier or other public utility :
Provided, That no common carrier or other public utility shall at any
time after the President shall have issued any stabilization regulations and orders under subsection (b) make any increase in its charges
for property or services sold by it for resale to the public, for which
application is filed after the date of issuance of such stabilization
regulations and orders, before the Federal, State or Municipal authority having jurisdiction to consider such increase, unless it first gives
30 days' notice to the President, or such agency as he may designate,
and consents to the timely intervention by such agency before the
Federal, State or Municipal authority having jurisdiction to consider
such increase ;
(vi) Margin requirements on any commodity exchange .
(f) The President, in or by any regulation or order, may provide
exemptions for any materials or services, or transactions therein, or
types of employment, with respect to which he finds that (1) such
exemption is necessary to promote the national defense ; or (2) it is
unnecessary that ceilings be applicable to such materials or services,
or transactions therein, or that compensation for such types of employment be stabilized, in order to effectuate the purposes of this title .
(g) The powers granted in this title shall not be used or made to
operate to compel changes in the business practices, cost practices or
methods, or means or aids to distribution, established in any industry ;
except where such action is affirmatively found by the President to be
necessary to prevent circumvention or evasion of any regulation, order,
or requirement under this title.
(h) Nothing in this title shall be construed (1) as authorizing the
elimination or any restriction of the use of trade and brand names ;
(2) as authorizing the President to require the grade labeling of any
materials ; (3) as authorizing the President to standardize any materials or services, unless the President shall determine, with respect

64 STAT.]

807

81sT LONG., 2D SESS,-CH. 932-SEPT . 8, 1950

to such standardization, that no practicable alternative exists for securing effective price control with respect to such materials or services ;
or (4) as authorizing any order of the President establishing price
ceilings for different kinds, classes, or types of material or service,
which are described in terms of specifications or standards, unless such
specifications or standards were, prior to such order, in general use
in the trade or industry affected, or have previously been promulgated
and their use lawfully required by another Government agency .
(i) No rule, regulation, or order issued under this title shall require
any seller of materials at retail to limit his sales with reference to any
highest price line offered for sale by him at any prior time .
SEC. 403 . At such time as the President determines that it is necessary to impose price and wage controls generally over a substantial
portion of the national economy, he shall administer such controls,
and rationing at the retail level of consumer goods for household and
personal use under authority of Title I of this Act (when and to the
extent that he exercises such authority), through a new independent
agency created for such purpose . Such agency may utilize the services, information, and facilities of other agencies and departments of
the Government, but such agency shall not delegate enforcement of
any of the controls to be administered by it under this section to any
other agency or department.
SEC. 404 . In carrying out the provisions of this title, the President
shall, so far as practicable, advise and consult with, and establish
and utilize committees of, representatives of persons substantially
affected by regulations or orders issued hereunder .
SEc. 405. (a) It shall be unlawful, regardless of any obligation
heretofore or hereafter entered into, for any person to sell or deliver,
or in the regular course of business or trade to buy or receive, any
material or service, or otherwise to do or omit to do any act, in violation of this title or of any regulation, order, or requirement issued
thereunder, or to offer, solicit, attempt or agree to do any of the
foregoing.
(b) No employer shall pay, and no employee shall receive, any
wage, salary, or other compensation in contravention of any regulation or order promulgated by the President under this title . The
President shall also prescribe the extent to which any wage, salary,
or compensation payment made in contravention of any such regulation or order shall be disregarded by the executive departments and
other governmental agencies in determining the costs or expenses of
any employer for the purposes of any other law or regulation .
SEc . 406 . Nothing in this title shall be construed to require any
person to sell any material or service, or to perform personal services .
SEc . 407 . (a) At any time within six months after the effective
date of any regulation or order relating to price controls under this
title, or, in the case of new grounds arising after the effective date of
any such regulation or order relating to price controls, within six
months after such new grounds arise, any person subject to any provision of such regulation or order may, in accordance with regulations
to be prescribed by the President, file a protest specifically setting
forth objections to any such provision and affidavits or other written
evidence in support of such objections . Statements in support of any
such regulation or order may be received and incorporated in the
transcript of the proceedings at such times and in accordance with
such regulations as may be prescribed by the President . Within a
reasonable time after the filing of any protest under this section, but
in no event more than thirty days after such filing, the President shall
either grant or deny such protest in whole or in part, notice such
protest for hearing, or provide an opportunity to present further

Retail sales.

Administration of
controls through new
independent agency .

Filing of protest,

808

Notice of economic
data, etc .
Post, p . 816.

Board of review.

Protests.

Filing of complaint
with Emergency
Court of Appeals.

PUBLIC LAWS-OH. 932~'-SEPT. 8,,1950 [64 STAT.

evidence in connection therewith . In the event that the President
denies any such protest in whole or in part, he shall inform the protestant of the grounds upon which such decision is based, and of any
economic data and other facts of which the President has taken official
notice.
(b) In the administration of this title the President may take official
notice of economic data and other facts, including facts found by him
as a result of action taken under section 705 of this Act .
(c) Any proceedings under this section may be limited by the
President to the filing of affidavits, or other written evidence, and the
filing of briefs : Provided, however, That upon the request of the Protestant, any protest filed in accordance with subsection (a) of this
section shall, before denial in whole or in part, be considered by a
board of review consisting of one or more officers or employees of the
United States designated by the President in accordance with regulations to be promulgated by him. Such regulations shall provide that
the board of review may conduct hearings and hold sessions in the
District of Columbia or any other place, as a board, or by subcommittees thereof, and shall provide that, upon the request of the
protestants and upon a showing that material facts would be adduced
thereby, subpenas shall issue to procure the evidence of persons, or the
production of documents, or both . The President shall cause to be
presented to the board such evidence, including economic data, in the
form of affidavits or otherwise, as he deems appropriate in support of
the provision against which the protest is filed. The protestant shall
be accorded an opportunity to present rebuttal evidence in writing
and oral argument before the board and the board shall make written
recommendations to the President . The protestant shall be informed
of the recommendations of the board and, in the event that the President rejects such recommendations in whole or in part, shall be
informed of the reasons for such rejection .
(d) Any protest filed under this section shall be granted or
denied by the President, or granted in part and the remainder of
it denied within a reasonable time after it is filed . Any protestant
who is aggrieved by undue delay on the part of the President in
disposing of his protest may petition the Emergency Court of
Appeals for relief ; and such court shall have jurisdiction by
appropriate order to require the President to dispose of such protest
within such time as may be fixed by the court. If the President
does not act finally within the time fixed by the court, the protest
shall be deemed to be denied at the expiration of that period.
SEC . 408. (a) Any person who is aggrieved by the denial or partial
denial of his protest may, within thirty days after such denial, file a
complaint with the Emergency Court of Appeals specifying his objections and praying that the regulation or order protested be enjoined
or set aside in whole or in part . A copy of such complaint shall
forthwith be served on the President, who shall certify and file with
such court a transcript of such portions of the proceedings in connection with the protest as are material under the complaint . Such
transcript shall include a statement setting forth, so far as practicable,
the economic data and other facts of which the President has taken
official notice . Upon the filing of such complaint the court shall have
exclusive jurisdiction to set aside such regulation or order, in whole
or in part, to dismiss the complaint, or to remand the proceeding :
Provided, That the regulation or order may be modified or rescinded
by the President at any time notwithstanding the pendency of such
complaint. No objection to such regulation or order, and no evidence
in support of any objection thereto, shall be considered by the court,
unless such objection shall have been set forth by the complainant in

64 STAT.j

81sT CONG., 2D SESS.-CH. 932-SEPT. 8, 1950

the protest or such evidence shall be contained in the transcript . If
application is made to the court by either party for leave to introduce
additional evidence which was either offered to the President and not
admitted, or which could not reasonably have been offered to the
President or included by the President in such proceedings, and the
court determines that such evidence should be admitted, the court
shall order the evidence to be presented to the President . The President shall promptly receive the same, and such other evidence as he
deems necessary or proper, and thereupon he shall certify and file
with the court a transcript thereof and any modification made in the
regulation or order as a result thereof ; except that on request by the
President, any such evidence shall be presented directly to the court .
(b) No such regulation or order shall be enjoined or set aside, in
whole or in part, unless the complainant establishes to the satisfaction
of the court that the regulation or order is not in accordance with
law, or is arbitrary or capricious . The effectiveness of a judgment of
the court enjoining or setting aside, in whole or in part, any such
regulation or order shall be postponed until the expiration of thirty
days from the entry thereof, except that if a petition for a writ of
certiorari is filed with the Supreme Court under subsection (d) within
such thirty days, the effectiveness of such judgment shall be postponed
until an order of the Supreme Court denying such petition becomes
final, or until other final disposition of the case by the Supreme Court.
(c) The Emergency Court of Appeals is hereby continued for the
purpose of the exercise of the jurisdiction granted by this title, with
the powers herein specified, together with the powers heretofore
granted by law to such court which are not inconsistent with the
provisions of this title . The court shall have the powers of a district
court with respect to the jurisdiction conferred on it by this title ;
except that the court shall not have power to issue any temporary
restraining order or interlocutory decree staying or restraining, in
whole or in part, the effectiveness of any regulation or order relating
to price controls issued under this title . The court shall exercise its
powers and prescribe rules governing its procedure in such manner as
to expedite the determination of cases of which it has jurisdiction
under this title.
(d) Within thirty days after entry of a judgment or order, interlocutory or final, by the Emergency Court of Appeals, a petition for
a writ of certiorari may be filed in the Supreme Court of the United
States, and thereupon the judgment or order shall be subject to review
by the Supreme Court in the same manner as a judgment of a United
States court of appeals as provided in section 1254 of title 28, United
States Code . The Supreme Court shall advance on the docket and
expedite the disposition of all causes filed therein pursuant to this
subsection. The Emergency Court of Appeals, and the Supreme
Court upon review of judgments and orders of the Emergency Court
of Appeals, shall have exclusive jurisdiction to determine the validity
of any regulation or order relating to price controls issued under this
title, and of any provision of any such regulation or order . Except
as provided in this section, no court, Federal, State, or Territorial,
shall have jurisdiction or power to consider the validity of any such
regulation or order relating to price controls, or to stay, restrain,
enjoin, or set aside, in whole or in part, any provision of this title
authorizing the issuance of such regulations or orders, or any provision of any such regulation or order, or to restrain or enjoin the
enforcement of any such provision .
(e) (1) Within thirty days after arraignment, or such additional
time as the court may allow for good cause shown, in any criminal
proceeding, and within five days after judgment in any civil or crim-

809
Admission of additional evidence .

Setting aside of
order, etc .

Powers of Emergency Court of Appeals .

Review by Supreme
court.

62 Stat . 828 .
28 U . S . C . . Sup. III,
1254.
Jurisdiction to determine validity of
regulations, etc.

Filing of complaint .

810
Post, p. 817.
62 Stat . 701.
18 U . 8 .0., Sup. III,
1371 .

Post, p. 817.
fit Stat . 701 .
is U. S. C., Sup . 111,
371 .
Stay of proceeding .

Temporary injunction, etc.

PUBLIC LAWS-CH. 932-SEPT. 8, 1950

[64 STAT.

inal proceeding, brought pursuant to section 409 or 706 of this Act or
section 371 of title 18, United States Code, involving alleged violation
of any provision of any regulation or order relating to price controls
issued under this title, the defendant may apply to the court in which
the proceeding is pending for leave to file in the Emergency Court of
Appeals a complaint against the President setting forth objections to
the validity of any provision which the defendant is alleged to have
violated or conspired to violate . The court in which the proceeding
is pending shall grant such leave with respect to any objection which
it finds is made in good faith and with respect to which it finds there
is reasonable and substantial excuse for the defendant's failure to
present such objection in a protest filed in accordance with section 407
of this title. Upon the filing of a complaint pursuant to and within
thirty days from the granting of such leave, the Emergency Court of
Appeals shall have jurisdiction to enjoin or set aside in whole or in
part the provision of the regulation or order complained of or to
dismiss the complaint. The court may authorize the introduction of
evidence, either to the President or directly to the court, in accordance
with subsection (a) of this section. The provisions of subsections
(b), (c), and (d) of this section shall be applicable with respect to
any proceeding instituted in accordance with this subsection .
(2) In any proceeding brought pursuant to section 409 or 706 of
this Act or section 371 of title 18, United States Code, involving an
alleged violation of any provision of any such regulation or order,
the court shall stay the proceeding(i) during the period within which a complaint may be filed
in the Emergency Court of Appeals pursuant to leave granted
under paragraph (1) of this subsection with respect to such
provision ;
(ii), during the pendency of any protest properly filed by the
defenant under section 407 of this title prior to the institution
of the proceeding under section 409 or 706 of this Act or section
371 of title 18, United States Code, setting forth objections to the
validity of such provision which the court finds to have been made
in ood faith ; and
iii) during the pendency of any judicial proceeding instituted
by the defendant under this section with respect to such protest
or instituted by the defendant under paragraph (1) of this subsection with respect to such provision, and until the expiration of
the time allowed in this section for the taking of further proceedings with respect thereto .
Notwithstanding the provisions of this paragraph, stays shall be
granted thereunder in civil proceedings only after judgment and
upon application made within five days after judgment . Notwithstanding the provisions of this paragraph, in the case of a proceeding
under section 409 (a) or 706 (a) of this Act the court granting
a stay under this paragraph shall issue a temporary injunction or
restraining order enjoining or restraining, during the period of
the stay, violations by the defendant of any provision of the
regulation or order involved in the proceeding . If any provision
of a regulation or order is determined to be invalid by judgment
of the Emergency Court of Appeals which has become effective
in accordance with section 408 (b) of this title, any proceeding
pending in any court shall be dismissed, and any judgment in such
proceeding vacated, to the extent that such proceeding or judgment
is based upon violation of such provision . Except as provided in
this subsection, the pendency of any protest under section 407 of
this title, or judicial proceeding under this section, shall not be
grounds for staying any proceeding brought pursuant to section 409 or
706 of this Act or section 371 of title 18, United States Code ; nor,

64 STAT.]

81sT CONG., 2D SESS.-CH. 932-SEPT. 8, 1950

except as provided in this subsection, shall any retroactive effect be
given to any judgment setting aside a provision of a regulation or
order issued under this title .
SEC . 409. (a) Whenever in the judgment of the President any person has engaged or is about to engage in any acts or practices which
constitute or will constitute a violation of any provision of section 405
of this title, he may make application to the appropriate court for an
order enjoining such acts or practices, or for an order enforcing compliance with such provision, and upon a showing by the President
that such person has engaged or is about to engage in any such acts
or practices a permanent or temporary injunction, restraining order,
or other order shall be granted without bond .
(b) Any person who willfully violates any provision of section 405
of this title shall be guilty of a misdemeanor and shall, upon conviction thereof, be subject to a fine of not more than $10,000, or to
imprisonment for not more than one year, or both . Whenever the
President has reason to believe that any person is liable to punishment
under this subsection, he may certify the facts to the Attorney General, who may, in his discretion, cause appropriate proceedings to be
brought.
(c) If any person selling any material or service violates a regulation or order prescribing a ceiling or ceilings, the person who buys
such material or service for use or consumption other than in the
course of trade or business may, within one year from the date of the
occurrence of the violation, except as hereinafter provided, bring an
action against the seller on account of the overcharge . In any action
under this subsection, the seller shall be liable for reasonable attorney's
fees and costs as determined by the court, plus whichever of the following sums is greater : (1) such amount not more than three times
the amount of the overcharge, or the overcharges, upon which the
action is based as the court in its discretion may determine, but in no
event shall such amount exceed the amount of the overcharge or the
overcharges, plus $10,000, or (2) an amount not less than ~25 nor
more than $50 as the court in its discretion may determine : Provided,
however, That such amount shall be the amount of the overcharge or
overcharges if the defendant proves that the violation of the regulation or order in question was neither willful nor the result of failure
to take practicable precautions against the occurrence of the violation .
For the purposes of this section the word "overcharge" shall mean
the amount by which the consideration exceeds the applicable ceiling .
If any person selling any material or service violates a regulation or
order prescribing a ceiling or ceilings and the buyer either fails to
institute an action under this subsection within thirty days from the
date of the occurrence of the violation or is not entitled for any reason
to bring the action, the President may institute such action on behalf
of the United States within such one-year period, or compromise with
the seller the liability which might be assessed against the seller in
such an action . If such action is instituted, or such liability is compromised by the President, the buyer shall thereafter be barred from
bringing an action for the same violation or violations . Any action
under this subsection by either the buyer or the President, as the case
may be, may be brought in any court of competent jurisdiction. A
judgment in an action for damages, or a compromise, under this subsection shall be a bar to the recovery under this subsection of any
damages in any other action against the same seller on account of
sales made to the same purchaser prior to the institution of the action
in which such judgment was rendered, or prior to such compromise .
The President may not institute any action under this subsection on
behalf of the United States

811

Injunctions, etc
.

A7eie, 13 .607.

Penalty.

Action against seller
on account of overcharges .

"Overcharge ."

:812

Purchase of processed chickens or turkeys .

Contract provision .

PUBLIC LAWS-CH . 932-SEPT''8,' 1950

[64 STAT.

(1) if the violation arose because the person selling the material
or service acted upon and in accordance, with 'the written advice
and instructions of the President or any official authorized to
act for him ;
(2) if the violation arose out of the sale of any material or
service to any agency of the Government, and such sale was made
pursuant to the lowest bid made in response to an invitation for
competitive bids .
SEC . 410 . Each contract providing for the purchase of processed
chickens or turkeys by any department or agency of the United States
from any contractor, entered into at any time when ceiling prices are
in effect under this Act for whichever of such fowl is covered by such
contract, shall contain the following provision (with such change as
may be necessary to describe the fowl covered by the contract)
"The contractor represents that the contract price is based upon an
estimated price paid to the producers for live chickens or live turkeys
to be processed hereunder . In the event and to the extent that the
actual price paid to the producers of live chickens or live turkeys
purchased for the performance of this contract is less than such
estimated price, the contract price shall be reduced by the same
number of cents or fraction thereof, per pound ."
TITLE V
SETTLEMENT OF LABOR DISPUTES

Ante, p . 803.

Authority of President .

52 Stat. 1060; 61 Stat .
136.
29 U . S . C . ° 201,
Sup . III, °°201d seq .,
141 et seq.

SEC. 501 . It is the intent of Congress, in order to provide for effective price and wage stabilization pursuant to title IV of this Act and
to maintain uninterrupted production, that there be effective procedures for the settlement of labor disputes affecting national defense.
SEC. 502. The national policy shall be to place primary reliance upon
the parties to any labor dispute to make every effort through negotiation and collective bargaining and the full use of mediation and conciliation facilities to effect a settlement in the national interest . To
this end, the President is authorized (1) to initiate voluntary conferences between management, labor, an such persons as the President
may designate to represent government and the public, and (2) subject
to the provisions of section 503, to take such action as may be agreed
upon in any such conference and appropriate to carry out the provisions of this title . The President may designate such persons or
agencies as he may deem appropriate to carry out the provisions of
this title .
SEC . 503 . In any such conference, due regard shall be given to terms
and conditions of employment established by prevailing collective
bargaining practice which will be fair to labor and management alike,
and will be consistent with stabilization policies established under this
Act . No action inconsistent with the provisions of the Fair Labor
Standards Act of 1938, as amended, other Federal labor standards
statutes, the Labor Management Relations Act, 1947, or with other
applicable laws shall be taken under this title .

TITLE VI-CONTROL OF CONSUMER AND REAL ESTATE
CREDIT
THIS TITLE AUTHORIZES THE REGULATION OF CONSUMER CREDIT AND
REAL ESTATE CONSTRUCTION CREDIT ONLY
SEC . 601
. To assist in carrying out the objectives of this Act, the
Board of Governors of the Federal Reserve System is authorized,
notwithstanding the provisions of Public Law 386, Eightieth Congress

64 STAT.]

813

S1sT CONG ., 2D SESS .-CH. 932-SEPT . 8. .1950

(61 Stat. 921), to exercise consumer credit controls in accordance with
and to carry out the provisions of Executive Order Numbered 8843
(August 9, 1941) until such time as the President determines that
the exercise of such controls is no longer necessary, but in no event
beyond the date on which this section terminates .
SEC. 602 . (a) To assist in carrying out the purposes of this Act, the
President is authorized from time to time to prescribe regulations with
respect to such kind or kinds of real estate construction credit which
thereafter may be extended as, in his judgment, it is necessary to
regulate in order to prevent or reduce excessive or untimely use of or
fluctuations in such credit . Such regulations may, among other things,
prescribe maximum loan or credit values, minimum down payments
in cash or property, trade-in or exchange values, maximum maturities,
maximum amounts of credit, rules regarding the amount, form, and
time of various payments, rules against any credit in specified circumstances, rules regarding consolidations, renewals, revisions, transfers,
or assignments of credit, and rules regarding other similar or related
matters. Such regulations may classify persons and transactions and
may apply different requirements thereto, and may include such
administrative provisions as in the judgment of the President are
reasonably necessary in order to effectuate the purposes of this section
or to prevent evasions thereof .
In prescribing and suspending such regulations, including changes
from time to time to take account of changing conditions, the President shall consider, among other factors, (1) the level and trend of
real estate construction credit and the various kinds thereof, (2) the
effect of the use of such credit upon (i) purchasing power and (ii)
demand for real property and improvements thereon and for other
goods and services, (3) the need in the national economy for the
maintenance of sound credit conditions, and (4) the needs for increased
defense production .
(b) No person shall extend or maintain any real estate construction
credit, or renew, revise, consolidate, refinance, purchase, sell, discount,
or lend or borrow on, any obligation arising out of any such credit,
or arrange for any of the foregoing, in contravention of any regulation prescribed by the President pursuant to this section . Any person
who extends or maintains any such credit, or renews, revises, consolidates, refinances, purchases, sells, discounts, or lends or borrows
on, any obligation arising out of any such credit, or arranges for any
of the foregoing, shall make, keep, and preserve for such periods,
such accounts, correspondence, memoranda, papers, books, and other
records, and make such reports, under oath or otherwise, as the President may by regulation require as necessary or appropriate in order
to effectuate the purposes of this section ; and such accounts, correspondence, memoranda, papers, books, and other records shall be
subject at any time to such reasonable periodic, special, or other
examinations by examiners or other representatives of the President
as the President may deem necessary or appropriate . The requirements of this section* apply whether a person is acting as principal,
agent, broker, vendor, or otherwise . (c) To assist in carrying out the purposes of this section, the President by regulation may require transactions or persons or classes
thereof subject to this section to be registered ; and, after notice and
opportunity for hearing, the President by order may suspend any such
registration for violation of this section or any regulation prescribed
by the President pursuant to this section. The provisions of section
25 of the Securities Exchange Act of 1934, as amended, shall apply in
the case of any such order of the President in the same manner that
such provisions apply in the case of orders of the Securities and

12 U . S . C ., Sup. III,
° 248 note.
50 U. S. C. app . ° 5
note .

Regulations respecting real estate construction credit .

Restrictions

Records, reports, etc.

Registration of transactions etc .

48 Stat . 901.
15 U . S . C . ° 78y.

PUBLIC LAWS-CH. 932-SEPT. 8, 1950

814

Definitions .

59 Stat . 597.
31 U . S. C . °° 841869, Sup, III, ° 846 et
seq.
Post, p. 834.

Penalty .

Applicability of designated provisions.
48 stat, 899,
15 U. S. C . °° 78u,
78aa.

sot.

[64 STAT.

Exchange Commission under that Act . In carrying out this section,
the President may act through and may utilize the services of the
Board of Governors of the Federal Reserve System, the Federal
Reserve banks, and any other agencies, Federal or State, which are
available and appropriate .
(d) For the purposes of this section, unless the context otherwise
requires, the following terms shall have the following meanings, but
the President may in his regulations further define such terms and,
in addition, may define technical, trade, accounting, and other terms,
insofar as any such definitions are not inconsistent with the provisions
of this section
(1) "Real estate construction credit" means any credit which (i) is
wholly or partly secured by, (ii) is for the purpose of purchasing or
carrying, (iii) is for the purpose of financing, or (iv) involves a right
to acquire or use, new construction on real property or real property
on which there is new construction . As used in this paragraph the
term "new construction" means any structure, or any major addition
or major improvement to a structure, which has not been begun before
12 o'clock meridian, August 3, 1950. As used in this paragraph the
term "real property" includes leasehold and other interests therein.
Notwithstanding the foregoing provisions of this paragraph, the term
``real estate construction credit" shall not include any loan or loans
made, insured, or guaranteed by any department, independent establishment or agency in the executive branch of the United States, or
by any wholly owned Government corporation, or by any mixedownership Government corporation as defined in the Government
Corporation Control Act, as amended .
(2) "Credit" means any loan, mortgage, deed of trust, advance, or
discount ; any conditional sale contract ; any contract to sell or sale
or contract of sale, of property or services, either for present or future
delivery, under which part or all of the price is payable subsequent
to the making of such sale or contract ; any rental-purchase contract, or
any contract for the bailment, leasing, or other use of property under
which the bailee, lessee, or user has the option of becoming the owner
thereof, obligates himself to pay as compensation a sum substantially
equivalent to or in excess of the value thereof, or has the right to have
all or part of the payments required by such contract applied to the
purchase price of such property or similar property ; any option,
demand, lien, pledge, or similar claim against, or for the delivery of
property or money ; any purchase, discount, or other acquisition of,
or any credit under the security of, any obligation or claim arising
out of any of the foregoing ; and any transaction or series of
transactions having a similar purpose or effect .
SEC. 603 . Any person who willfully violates any provision of section
601 or 602 or any regulation or order issued thereunder, upon conviction thereof, shall be fined not more than $5,000 or imprisoned not
more than one year, or both .
SEC. 604. All the present provisions of sections 21 and 27 of the
Securities Exchange Act of 1934, as amended (relating to investigations, injunctions, jurisdictions, and other matters), shall be as
fully applicable with respect to the exercise by the Board of Governors
of the Federal Reserve System of credit controls under section 601
as they are now applicable with respect to the exercise by
the Securities and Exchange Commission of its functions under
that Act, and the Board shall have the same powers in the exercise
of such credit controls as the Commission now has under the said
sections 21 and 27.
SEc . 605 . To assist in carrying out the objectives of this Act the President may at any time or times, notwithstanding any other provision of

64 STAT.]

815

81sT CONG., 2D SESS .-CH . 932-SEPT. 8, 1950

law, reduce, for such period as he shall specify, the maximum authorized principal amounts, ratios of loan to value or cost, or maximum
maturities of any type or types of loans on real estate which thereafter may be made, insured, or guaranteed by any department,
independent establishment, or agency in the executive branch of
the United States Government, or by any wholly owned Government
corporation or by any mixed-ownership Government corporation
as defined in the Government Corporation Control Act, as amended,
or reduce or suspend any such authorized loan program, upon a
determination, after taking into consideration the effect thereof upon
conditions in the building industry and upon the national economy
and the needs for increased defense production, that such action is
necessary in the public interest : Provided, That in the exercise of
these powers . the President shall preserve the relative credit preferences accorded to veterans under existing law.

59 Stat . 5Y'.
31 U . S . U . °° 841869, Sup. III, ° 846 et
seq.
Post, p. 834 .

Credit preference of
veterans.

TITLE VII-GENERAL PROVISIONS
SEC. 701 . (a) It is the sense of the Congress that small-business
enterprises be encouraged to make the greatest possible contribution
toward achieving the objectives of this Act .
(b) In order to carry out this policy(i) the President shall provide small-business enterprises with
full information concerning the provisions of this Act relating
to, or of benefit to, such enterprises and concerning the activities
of the various departments and agencies under this Act :
(ii) such business advisory committees shall be appointed as
shall be appropriate for purposes of consultation in the formulation of rules, regulations, or orders, or amendments thereto issued
under authority of this Act, and in their formation there shall be
fair representation for independent small, for medium, and for
large business enterprises, for different geographical areas, for
trade association members and nonmembers, and for different segments of the industry ;
(iii) in administering this Act, such exemptions shall be provided for small-business enterprises as may be feasible without
impeding
in
the accomplishment of the objectives of this Act ; and
(iv) in administering this Act, special provision shall be made
for the expeditious handling of all requests, applications, or
appeals from small-business enterprises.
(c) Whenever the President invokes the powers given him in this
Act to allocate, or approve agreements allocating, any material, to an
extent which the President finds will result in a significant dislocation
of the normal distribution in the civilian market, he shall do so in such
a manner as to make available, so far as practicable, for business and
various segments thereof in the normal channel of distribution of
such material, a fair share of the available civilian supply based, so
far as practicable, on the share received by such business under normal
conditions during a representative period preceding June 24, 1950
and having due regard to the needs of new businesses .
SEC . 702. As used in this Act(a) The word "person" includes an individual, corporation, partnership, association, or any other organized group of persons, or legal
successor or representative of the foregoing, and includes the United
States or any agency thereof, or any other government, or any of its
political subdivisions, or any agency of any of the foregoing : Provided.
That no punishment provided by this Act shall apply to the United
States, or to any such government, political subdivision, or government
agency.

Small-business enter
prises .

Appointment of advisory committees .

Exemptions.

Fair share of civilian
supply.

Definitions.

Nonapplicability of
punishment.

813

63 Stat . 714 .
22 U.S .C ., Sup . III,
°° 1571-1604.
Ante, p. 373 et seq .

Delegation of au.
thority .

Appointment of officers, etc.

63 Stat . 954.
5 U . S . C ., Sup. III,
° 1071 note .
Ante, pp. 232, 262 ;
post, p . 1100.

5 U. S . C . ° 947, Sup .
In °947 note .
.lost, p . 843.
Consent of Senate .
Ante, p . 803.

Rules and regulations.

Right to obtain information, etc.

PUBLIC LAWS

CH . 932-SEPT. 8, 1956

[64 STAT.

(b) The word "materials" shall include raw materials, articles,
commodities, products, supplies, components, technical information,
and processes.
(c) The word "facilities" shall not include farms, churches or other
places of worship, or private dwelling houses.
(d) The term "national defense" means the operations and activities of the armed forces, the Atomic Energy Commission, or any other
Government department or agency directly or indirectly and substantially concerned with the national defense, or operations or activities in connection with the Mutual Defense Assistance Act of 1949,
as amended.
(e) The words "wages, salaries, and other compensation" shall
include all forms of remuneration to employees by their employers
for personal services, including, but not limited to, vacation and holiday payments, night shift and other bonuses, incentive payments,
year-end bonuses, employer contributions to or payments of insurance
or welfare benefits, employer contributions to a pension fund or annuity payments in kind, and premium overtime payments .
SEC.. 703 . (a) Except as otherwise specifically provided, the President may delegate any power or authority conferred upon him by this
Act to any officer or agency of the Government, including any new
agency or agencies (and the President is hereby authorized to create
such new agencies, other than corporate agencies, as he deems necessary), and he may authorize such redelegations by that officer or
agency as the President may deem appropriate . The President is
authorized to appoint heads and assistant heads of any such new
agencies, and other officials therein of comparable status, and to fix
their compensation, without regard to the Classification Act of 1949,
as amended, at rates comparable to the compensation paid to the heads
and assistant heads of independent agencies of the Government . Any
officer or agency may employ civilian personnel for duty in the United
States, including the District of Columbia, or elsewhere, without
regard to section 14 of the Federal Employees Pay Act of 1946 (60
Stat. 219), as the President deems necessary to carry out the provisions of this Act.
(b) The head and assistant heads of any independent agency
created to administer the authority conferred by title IV of this Act
shall be appointed by the President, by and with the advice and consent
of the Senate.
SEC. 704. The President may make such rules, regulations, and
orders as he deems necessary or appropriate to carry out the provisions
of this Act. Any regulation or order under this Act may be established in such form and manner, may contain such classifications and
differentiations, and may provide for such adjustments and reasonable
exceptions as in the judgment of the President are necessary or proper
to effectuate the purposes of this Act, or to prevent circumvention or
evasion, or to facilitate enforcement of this Act, or any rule, regulation, or order issued under this Act .
SEC . 705 . (a) The President shall be entitled, while this Act is in
effect and for a period of two years thereafter, by regulation, subpena,
or otherwise, to obtain such information from, require such reports
and the keeping of such records by, make such inspection of the books,
records, and other writings, premises or property of, and take the
sworn testimony of, any person as may be necessary or appropriate,
in his discretion, to the enforcement or the administration of this
Act and the regulations or orders issued thereunder . The President
shall issue regulations insuring that the authority of this subsection
will be utilized only after the scope and purpose of the investigation,

64 STAT.]

817

81sT CONG . . 2f3 SESS .-CH. 932-SEPT . 8, 1950

authority, and it is assured that no adequate and authoritative data
are available from any Federal or other responsible agency . In case
of contumacy by, or refusal to obey a subpena served upon, any person
referred to in this subsection, the district court of the United States
for any district in which such person is found or resides or transacts
business, upon application by the President, shall have jurisdiction
to issue an order requiring such person to appear and give testimony
or to appear and produce documents, or both ; and any failure to obey
such order of the court may be punished by such court as a contempt
thereof .
(b) No person shall be excused from complying with any requirement under this section or from attending and testifying or from
producing books, papers, documents, and other evidence in obedience
to a subpena before any grand jury or in any court or administrative
proceeding based upon or growing out of any alleged violation of this
Act on the ground that the testimony or evidence, docu mentary or
otherwise, required of him may tend to incriminate him or subject
him to penalty or forfeiture ; but no natural person shall be prosecuted
or subjected to any penalty or forfeiture in any court, for or on account
of any transaction, matter, or thing concerning which he is so compelled, after having claimed his privilege against self-incr imi nation,
to testify or produce evidence, documentary or otherwise, except that
such natural person so testifying shall not be exempt from prosecution
and punishment for perjury committed in so testifying : Provided,
That the immunity granted herein from prosecution and punishment
and from any penalty or forfeiture shall not be construed to vest in
any individual any right to priorities assistance, to the allocation of
materials, or to any other benefit which is within the power of the
President to grant under any provision of this Act .
(c) The production of a person's books, records, or other documentary evidence shall not be required at any place other than the
place where such person usually keeps them, if, prior to the return
date specified in the regulations, subpena, or other document issued
with respect thereto, such person furnishes the President with a true
copy of such books, records, or other documentary evidence (certified
by such person under oath to be a true and correct copy) or enters
into a stipulation with the President as to the information contained in
such books, records, or other documentary evidence. Witnesses shall
be paid the same fees and mileage that are paid witnesses in the courts
of the United States .
(d) Any person who willfully performs any act prohibited or willfully fails to perform any act required by the above provisions of this
section, or any rule, regulation, or order thereunder, shall upon conviction be fined not more than $1,000 or imprisoned for not more titan
one year or both .
(e) Information obtained under this section which the President
deems confidential or with reference to which a request for confidential
treatment is made by the person furnishing such information shall
not be published or disclosed unless the President determines that the
withholding thereof is contrary to the interest of the national defense,
and any person willfully violating this provision shall, upon conviction, be fined not more than $10,000, or imprisoned for not more than
one year, or both .
SEC. 706. (a) Whenever in the judgment of the President any person has engaged or is about to engage in any acts or practices which
constitute or will constitute a violation of any provision of this Act,
he may make application to the appropriate court for an order enjoining such acts or practices, or for an order enforcing compliance with
such provision, and upon a showing by the President that such person
98352 ¢-51-eT . 1

52

Contumacy, etc.

Claims of privilege
against self-incrimination.

Fees, etc., for witnesses.
Penalty.

Confidential information .

Penalty.

Injunction, etc.

818

Jurisdiction of district courts.

Nonliability, etc.

Voluntary agreements .

3S Stat . 717 .
13 U . S. C . ° 58,
Sup. III, ° 42 et seq.
Ante, p . 21 .

Delegation of authority .

PUBLIC LAWS-CH . 932-SEPT . 8, 1950

[64 STAT .

has engaged or is about to engage in any such acts or practices a
permanent or temporary injunction, restraining order, or other order
shall be granted without bond .
(b) The district courts of the United States and the United States
courts of any Territory or other place subject to the jurisdiction of
the United States shall have jurisdiction of violations of this Act or any
rule, regulation, order, or subpena thereunder, and of all civil actions
under this Act to enforce any liability or duty created by, or to enjoin
any violation of, this Act or any rule, regulation, order, or subpena
thereunder. Any criminal proceeding on account of any such violation may be brought in any district in which any act, failure to act,
or transaction constituting the violation occurred . Any such civil
action may be brought in any such district or in the district in which
the defendant resides or transacts business . Process in such cases,
criminal or civil, may be served in any district wherein the defendant
resides or transacts business or wherever the defendant may be found ;
the subpena for witnesses who are required to attend a court in any
district in such case may run into any other district. The termination of the authority granted in any title or section of this Act, or of
any rule, regulation, or order issued thereunder, shall not operate to
defeat any suit, action, or prosecution, whether theretofore or thereafter commenced, with respect to any right, liability, or offense
incurred or committed prior to the termination date of such title or of
such rule, regulation, or order . No costs shall be assessed against
the United States in any proceeding under this Act . All litigation
arising under this Act or the regulations promulgated thereunder
shall be under the supervision and control of the Attorney General .
SEC. 707 . No person shall be held liable for damages or penalties
for any act or failure to act resulting directly or indirectly from his
compliance with a rule, regulation, or order issued pursuant to
this Act, notwithstanding that any such rule, regulation, or order
shall thereafter be declared by judicial or other competent authority
to be invalid . No person shall discriminate against orders or contracts to which priority is assigned or for which materials or facilities
are allocated under title I of this Act or under any rule, regulation,
or order issued thereunder, by charging higher prices or by imposing different terms and conditions for such orders or contracts than
for other generally comparable orders or contracts, or in any other
manner.
SEC . 708. (a) The President is authorized to consult with representatives of industry, business, financing, agriculture, labor, and other
interests, with a view to encouraging the making by such persons with
the approval by the President of voluntary agreements and programs
to further the objectives of this Act .
(b) No act or omission to act pursuant to this Act which occurs
while this Act is in effect, if requested by the President pursuant to
a voluntary agreement or program approved under subsection (a)
and found by the President to be in the public interest as contributing to the national defense shall be construed to be within the
prohibitions of the antitrust laws or the Federal Trade Commission
Act of the United States. A copy of each such request intended to
be within the coverage of this section, and any modification or withdrawal thereof, shall be furnished to the Attorney General and the
Chairman of the Federal Trade Commission when made, and it shall
be published in the Federal Register unless publication thereof would,
in the opinion of the President, endanger the national security .
(c) The authority granted in subsection (b) shall be delegated
only (1) to officials who shall for the purpose of such delegation be
required to be appointed by the President by and with the advice

04 STAT.]

819

81ST CONG., 2n SESS .-CH . 932-SEPT. 8, 1950

and consent of the Senate, unless otherwise required to be so appointed,
and (2) upon the condition that such officials consult with the Attorney
General and with the Chairman of the Federal Trade Commission
not less than ten days before making any request or finding thereunder, and (3) upon the condition that such officials obtain the
approval of the Attorney General to any request thereunder before
making the request. For the purpose of carrying out the objectives
of title I of this Act, the authority granted in subsection (b) of this
section shall not be delegated except to a single official of the
Government .
(d) Upon withdrawal of any request or finding made hereunder
the provisions of this section shall not apply to any subsequent act or
omission to act by reason of such finding or request .
(e) The Attorney General is directed to make, or request the Federal Trade Commission to make for him, surveys for the purpose of
determining any factors which may tend to eliminate competition,
create or strengthen monopolies, injure small business, or otherwise
promote undue concentration of economic power in the course of the
administration of this Act . The Attorney General shall submit to the
Congress and the President within ninety days after the approval of
this Act, and at such times thereafter as he deems desirable, reports
setting forth the results of such surveys and including such recommendations as he may deem desirable .
SEC. 709 . The functions exercised under this Act shall be excluded
from the operation of the Administrative Procedure Act (60 Stat .
237) except as to the requirements of section 3 thereof. Any rule,
regulation, or order, or amendment thereto, issued under authority
of this Act shall be accompanied by a statement that in the formulation thereof there has been consultation with industry representatives,
including trade association representatives, and that consideration
has been given to their recommendations, or that special circumstances
have rendered such consultation impracticable or contrary to the
interest of the national defense, but no such rule, regulation, or order
shall be invalid by reason of any subsequent finding by judicial or other
authority that such a statement is inaccurate .
SEC. 710. (a) The President, to the extent he deems it necessary
and appropriate in order to carry out the provisions of this Act, is
authorized to place positions and employ persons temporarily in
grades 16, 17, and 18 of the General Schedule established by the Classification Act of 1949, and such positions shall be additional to the
number authorized by section 505 of that Act .
(b) The President is further authorized, to the extent he deems
it necessary and appropriate in order to carry out the provisions of
this Act, and subject to such regulations as he may issue, to employ
persons of outstanding experience and ability without compensation ;
and he is authorized to provide by regulation for the exemption of
such persons from the operation of sections 281, 283, 284, 434, and
1914 of title 18 of the United States Code and section 190 of the
Revised Statutes (5 U . S. C . 99) . Persons appointed under the authority of this subsection may be allowed transportation and not to exceed
$15 per diem in lieu of subsistence while away from their homes or
regular places of business pursuant to such appointment .
(c) The President is authorized, to the extent he deems it necessary
and appropriate in order to carry out the provisions of this Act to
employ experts and consultants or organizations thereof, as authorized
by section 55a of title 5 of the United States Code . Individuals so
employed may be compensated at rates not in excess of $50 per diem
and while away from their homes or regular places of business they
may be allowed transportation and not to exceed $15 per diem in lieu

Ante, p. 799.

Nonapplicability.

Surveys by Attorney General.

Reports to Congress.

Exclusion of funs
tions, etc .
5 L . S . C . °° 10011011 ; Sup . III, ° 1001
et seq .

Additional posi .
tions.

63 Stat. 954.
5 U. S. C., Sup . III,
§§ 1071 note.
Ante, pp . 232, 262.
Employment of persons without compensation .

62 Stat . 697,698,703,
793 .
18 U . S . C., Sup . III,
°° 281, 283, 284, 434,
1914 .

Employment of experts, etc .

60 star. 810.

820

62 Stat . 697, 698, 703,
793 .
18 U.S.C., sup . III,
°° 281, 283, 284, 434,
1914.

62 Stat. 697, 698, 703,
793.
18 U . S . C., Sup . III,
°° 281, 283, 284, 434,
1914.
Use of confidential
information for speculation .

thorized.
Appropriation au-

Allocation or transfer of funds .

Joint Committee on
Defense Production.

Function .

Report to Congress .

PUBLIC LAWS-CH. 932-SEPT-8,19.50

[64 STAT.

of subsistence and other expenses while so employed . The President
is authorized to provide by regulation for the exemption of such
persons from the operation of sections 281, 283, 284, 434, and 1914
of title 18 of the United States Code and section 190 of the Revised
Statutes (5 U. S . C . 99) .
(d) The President may utilize the services of Federal, State, and
local agencies and may utilize and establish such regional, local, or
other agencies, and utilize such voluntary and uncompensated services,
as may from time to time be needed ; and he is authorized to provide
by regulation for the exemption of persons whose services are utilized
under this subsection from the operation of sections 281, 283, 284,
434, and 1914 of title 18 of the United States Code and section 190 of
the Revised Statutes (5 U . S . C. 99) .
(e) Whoever, being an officer or employee of the United States
or any department or agency thereof (including any Member of the
Senate or House of Representatives), receives, by virtue of his office
or employment, confidential information, and (1) uses such information in speculating directly or indirectly on any commodity exchange,
or (2) discloses such information for the purpose of aiding any other
person so to speculate, shall be fined not more than $10,000 or
imprisoned not more than one year, or both . As used in this section,
the term "speculate" shall not include a legitimate hedging transaction,
or a purchase or sale which is accompanied by actual delivery of the
commodity.
SEC . 711 . There are hereby authorized to be appropriated such
sums as may be necessary and appropriate for the carrying out of
the provisions and purposes of this Act by the President and such
agencies as he may designate or create . Funds made available for the
purposes of this Act may be allocated or transferred for any of the
purposes of this Act, with the approval of the Bureau of the Budget,
to any agency designated to assist in carrying out this Act . Funds
so allocated or transferred shall remain available for such period
as may be specified in the Acts making such funds available .
SEC . 712. (a) There is hereby established a joint congressional
committee to be known as the Joint Committee on Defense Production (hereinafter referred to as the committee), to be composed of
ten members as follows
(1) Five members who are members of the Committee on
Banking and Currency of the Senate, three from the majority
and two from the minority party, to be appointed by the chairman of the committee ; and
(2) Five members who are members of the Committee on
Banking and Currency of the House of Representatives, three
from the majority and two from the minority party, to be
appointed by the chairman of the committee .
A vacancy in the membership of the committee shall be filled in the
same manner as the original selection . The committee shall elect a
chairman and a vice chairman from among its members, one of whom
shall be a member of the Senate and the other a member of the House
of Representatives.
(b) It shall be the function of the committee to make a continuous
study of the programs authorized by this Act, and to review the
progress achieved in the execution and administration of such programs . Upon request, the committee shall aid the standing committees of the Congress having legislative jurisdiction over any part
of the programs authorized by this Act ; and it shall make a report to
the Senate and the House of Representatives, from time to time, concerning the results of its studies, together with such recommendations

64

STAT..l

821

81ST CONG ., 2D SESS.-CH. 932-SEPT. 8, 1950'

as it may deem desirable . Any department, official, or agency admin=
istering any of such programs shall, at the request of the committee,
consult with the committee, from time to time, with respect to their
activities under this Act .
(c) The committee, or any duly authorized subcommittee thereof,
is authorized to hold such hearings, to sit and act at such times and
places, to require by subpena (to be issued under the signature of the
chairman or vice chairman of the committee) or otherwise the attendance of such witnesses and the production of such books, papers, and
documents, to administer such oaths, to take such testimony, to procure such printing and binding, and to make such expenditures as it
deems advisable . The cost of stenographic services to report such
hearings shall not be in excess of 25 cents per hundred words . The
provisions of sections 102 to 104, inclusive, of the Revised Statutes
shall apply in case of any failure of any witness to comply with any
subpena or to testify when summoned under authority of this subsection .
(d) The committee is authorized to appoint and, without regard
to the Classification Act of 1949, as amended, fix the compensation
of such experts, consultants, technicians, and organizations thereof,
and clerical and stenographic assistants as it deems necessary and
advisable.
(e) The expenses of the committee under this section, which shall
not exceed $50,000 in any fiscal year, shall be paid one-half from the
contingent fund of the Senate and one-half from the contingent fund
of the House of Representatives upon vouchers signed by the chairman or vice chairman. Disbursements to pay such expenses shall be
made by the Clerk of the House of Representatives out of the contingent fund of the House of Representatives, such contingent fund
to be reimbursed from the contingent fund of the Senate in the amount
of one-half of disbursements so made without regard to any other
provision of law .
SEC . 713. The provisions of this Act shall be applicable to the
United States, its Territories and possessions, and the District of
Columbia .
SEC . 714 . If any provision of this Act or the application of such
provision to any person or circumstances shall be held invalid, the
remainder of the Act, and the application of such provision to persons
or circumstances other than those as to which it is held invalid, shall
not be affected thereby .
SEC . 715. That no person may be employed under this Act who
engages in a strike against the Government of the United States or
who is a member of an organization of Government employees that
asserts the right to strike against the Government of the United States,
or who advocates, or who is a member of an organization that advocates, the overthrow of the Government of the United States by force
or violence : Provided, That for the purposes hereof an affidavit shall
be considered prima facie evidence that the person making the affidavit
has not contrary to the provisions of this section engaged in a strike
against the Government of the United States, is not a member of an
organization of Government employees that asserts the right to strike
against the Government of the United States or that such person does
not advocate, and is not a member of an organization that advocates,
the overthrow of the Government of the United States by force or
violence : Provided further, That any person who engages in a strike
against the Government of the United States or who is a member of
an organization of Government employees that asserts the right to
strike against the Government of the United States, or who advocates,
or who is a member of an organization that advocates, the overthrow

Hearings, etc .

2 U. S . 0. °° 192194.

63 Stat . 954.
5 U. S . C ., Sup. III,
g 1071 note .
Ante, pp . 232, 262;
post, p . 1100 .

Expenses .

Applicability of Act.

Separability of pro.
visions.

Persons engaging,
etc ., in strikes against
or advocating overthrow of U . S . Government.

Affidavit.

Penalty .

822

Termination dates,
etc.
Ante, pp. 790, 800,
815.

Ante, pp . 803, 812.

PUBLIC LAWS-CHS. 932, 9.33-SEPT. 8, 1950

[64 STMT.

of the Government of the United States by force or violence and
accepts employment the salary or wages for which are paid from any
appropriation or fund contained in this Act shall be guilty of a felony
and, upon conviction, shall be fined not more than $1,000 or imprisoned
for not more than one year . or both : Provided further, That the above
penalty clause shall be in addition to, and not in substitution for, any
other provisions of existing law .
SEC. 716. (a) Titles I, II, III, and VII of this Act and all authority
conferred thereunder shall terminate at the close of June 30, 1952, but
such titles shall be effective after June 30, 1951 only to the extent
necessary to aid in carrying out contracts relating to the national
defense entered into by the (Government prior to July 1, 1951 .
(b) Titles IV, V, and VI of this Act and all authority conferred
thereunder shall terminate at the close of June 30, 1951 .
(c) Notwithstanding the foregoing(1) The Congress by concurrent resolution or the President by
proclamation may terminate this Act prior to the termination
otherwise provided therefor.
(2) The Congress may also provide by concurrent resolution
that any section of this Act and all authority conferred thereunder shall terminate prior to the termination otherwise provided
therefor.
(3) Any agency created under this Act may be continued in
existence for purposes of liquidation for not to exceed six months
after the termination of the provision authorizing the creation of
such agency.
(d) The termination of any section of this Act, or of any agency or
corporation utilized under this Act, shall not affect the disbursement
of funds under, or the carrying out of, any contract, guarantee, commitment or other obligation entered into pursuant to this Act prior to
the date of such termination, or the taking of any action necessary to
preserve or protect the interests of the United States in any amounts
advanced or paid out in carrying on operations under this Act .
Approved September 8, 1950 .
[CHAPTER 933]

September 8 1950
[S. 35481
[Public Law 775]

U. S . Employment
Service .
29 U . S . C . °49b (b) .
Inclusion of Puerto
Rico and Virgin Islands.
0
48 Stat . 114 .
29 U . S. C . ° 49d ;
Sup . III, ° 49d note.

53 Stat . 183; 49 Stat .
626.
26 U . S. C . °° 16001611, Sup . 111, ° 1402
el seq . ; 42 U . S . C . ° 503.
Ante, pp . 545, 646,
560;eupra.

AN ACT
To extend the Act of June 6, 1933 (48 Stat . 113), as amended, to Puerto Rico
and the Virgin Islands, and for other purposes .

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 3 (b)
of the Act of June 6 . 1933 (48 Stat. 113), as amended, is hereby
amended to read as follows
"(b) Whenever in this Act the word `State' or `States' is used, it
shall be understood to include Hawaii, Alaska, Puerto Rico, and the
Virgin Islands ."
SEc . 2, Section 5 of said Act is amended to read as follows
"(a) There is authorized to be appropriated, out of any money in
the Treasury not otherwise appropriated, such amounts from time to
time as the Congress may deem necessary to carry out the purposes
of this Act .
"(b) The Secretary shall from time to time certify to the Secretary
of the Treasury for payment to each State which (i), except in the
case of Puerto Rico and the Virgin Islands, has an unemployment
compensation law approved by the Secretary under the Federal Unemployment Tax Act and is found to be in compliance with section 303
of the Social Security Act, as amended, and (ii) is found to be in
compliance with the Act of June 6, 1933 (48 Stat. 113), as amended,