^ X O N A L ^ v te-—-« 'Oî r'u % DERAL REGISTER 4? 1934 ^ VOLUME 8 \ NUMBER 222 *

Washington, Tuesday, November 15, 1938

The President EXECUTIVE ORDER CONTENTS Withdrawal of P ublic Lands for U se THE PRESIDENT of the Navy D epartment for Naval e x e c u t iv e o r d e r P urposes Executive Orders: Page CALIFORNIA California, land withdrawal for use of Navy Department— 2679 P artial Revocation of Executive Orders By virtue of and pursuant to the au­ Inspection of income, etc., tax of December 5, 1913, J anuary 13, 1915, thority vested in me by the act of June returns by Special Joint and February 23, 1928 25, 1910, c. 421, 36 Stat. 847, as amended Congressional Committee to by the act Qf August 24, 1912, c. 369, 37 PUBLIC WATER RESTORATION NO. 81 make an investigation of the Stat. 497, and subject to the conditions Tennessee Valley "Authority- 2680 therein expressed and to any valid ex­ Wyoming, Arizona, and California isting rights, it is ordered that the fol­ Inspection of income, etc., tax returns filed after June 16, By virtue of and pursuant to the au­ lowing-described public land in the State of California be, and it is hereby, with­ 1933, and returns under thority vested in me by section 1 of the Title IX of Social Security act of June 25, 1910, c. 421, 36 Stat. 847, drawn from settlement, location, sale, entry, or other form of appropriation, A c t______2679 the Executive Orders of December 5, and reserved for the exclusive use of the Wyoming, Arizona and Calif or-' 1913, January 13, 1915, as modified by Navy Department for naval purposes: nia, Public Water Restora­ Interpretation No. 70 of June 16, 1928, San Bernardino Meridian tion No. 81------2679 and February 23, 1928, creating, respec­ T. 16 S., R. 10 E., sec. 35, 640 acres. tively, Public Water Reserves Nos. 12, 24, RULES, REGULATIONS, and 114, are hereby revoked insofar as This order ¿hall remain in force until ORDERS revoked by the President or by act of they pertain to or affect the following- Congress. T itle 7—Agriculture : described lands in Wyoming, Arizona, F ranklin D R oosevelt Agricultural Adjustment Admin­ and California: The White H ouse, istration: Wyoming November 12, 1938. Cotton marketing quotas on Sixth Principal Meridian [No. 8004] 1939 crop, instructions for holding referendum on— 2681 In Public Water Reserve No. 12: [F. R. Doc. 38-3404; Filed, November 12,1938; T. 44 N., R. 70 W., 11:29 a. m .l Flue-cured tobacco quotas, sec. 30, S ^ S W ^ ; 1939, procedure------2683 sec. 31, Ni/aNW^. Bureau of Entomology and Plant EXECUTIVE ORDER Arizona Quarantine: Authorizing the Inspection of Income, Treatment requirement of Gila and Salt River Meridian Excess-P rofits, and Capital S tock T ax noninfested Holland nar­ In Public Water Reserve No. 24: R eturns, Estate and Gift Tax R eturns cissus bulbs as a condition T. 38 N„ R. 5 E„ sec. 6, lot 2 (NW & NEft), F iled After June 16, 1933, and R e­ of entry revoked------268Q SW%NEi4. turns U nder T itle IX of the Social T itle 9— Animals and Animal California S ecurity Act P roducts: San Bernardino Meridian By . virtue of and pursuant to the au­ Bureau of Animal Industry: thority vested in me by section 257 (a) of In Public Water Reserve No. 114: Declaring names of counties T. 12 S., R. 11 E., sec. 14, NE%, N&NW&, the Revenue Act of 1926 (44 Stat., 9, 51); placed in modified tu­ Ei/2SE&. section 55 of the Revenue Act of 1928 (45 berculosis-free accredited Stat., 791, 809); section 55 of the Revenue areas______2685 F ranklin D R oosevelt Act of 1932 (47 Stat., 169, 189), as T itle 12—Banking and Credit: The W hite H ouse, amended by section 218 (h) of the Na­ Board of Governors of the Fed­ November 10, 1938. tional Industrial Recovery Act (48 Stat., eral Reserve System: 195, 209); sections 215 (e) and 216 (b) [No. 80031 of the National Industrial Recovery Act Interlocking bank directorates under the Clayton. Act— 2685 [F. R. Doc. 38-3403; Filed, November 12, 1938; (48 Stat., 195, 208); sections 55 (a), 701 11:29 a. m.] (e). and 702 (b) of the Revenue Act of (Continued on next page) 2679 2680 FEDERAL REGISTER, Tuesday, November 15, 1938

CONTENTS—Continued Act of 1928 (44 Stat. 9, 51); section 55 of the Revenue Act of 1928 (45 Stat. 791, Civil Aeronautics Authority—Con. 809) ; section 55 of the Revenue Act of FEDERA^REtlSTEB Hearings on applications for 1932 (47 Stat. 169, 189) as amended by certificates of public con­ section 218 (h) of the National Indus­ venience and necessity—Con. PaSe trial Recovery Act (48 Stat. 195, 209) • Boston-Maine Airways, Inc___ 2694 section 216 (b) of the National Indus­ Western Air Express Corp__ _ 2694 trial Recovery Act (48 Stat. 195, 208); Published by the Division of the Federal Department of Labor: sections 55 (a) and 702 (b) of the Rev­ Register, The National Archives, pursuant to Division of Public Contracts: enue Act of 1934 (48 Stat, 680, 770); the authority contained in the Federal Photographic Supplies Indus­ Register Act, approved July 26, 1935 (49 section 106 (c) of the Revenue Act of Stat. L. 500), tinder regulations prescribed try, hearing on determi­ 1935 (49 Stat. 1014, 1019); and section by the Administrative Committee, with the nation of prevailing min­ 55 (a) of the Revenue Act of 1936 (49 approval of the President. imum w ages______2693 The Administrative Committee consists of Stat'. 1648), it is hereby ordered that th e Archivist or Acting Archivist, an officer Wage and Hour Division: income and excess-profits tax returns of the Department of Justice designated by Messengers, review of deter­ made under the Revenue Act of 1926, the Attorney General, and the Public Printer mination denying appli­ the Revenue Act of 1928, the Revenue or Acting Public Printer. cations to employ at The daily issue of the F ederal R egister Act of 1932, the National Industrial Re­ will be furnished by mail to subscribers, free wages lower than applica­ covery Act, the Revenue Act of 1934, of postage, for $1 per month or $10 per year; ble minimum specified__ 2694 the Revenue Act of 1935, and the Rev­ single copies 10 cents each; payable in ad­ vance. Remit by money order payable to Rural Electrification Administra­ enue Act of 1936, or under any of such Superintendent of Documents, Government tion: Acts as amended, for the calendar year Printing Office, Washington, D. C. Allocation of funds for loans— 2695 1925 and all subsequent taxable years Correspondence concerning the publica­ to and including the calendar year 1937, tion of the Federal R egister should be ad­ dressed to the Director, Division of the shall be open to inspection by the Special Federal Register, The National Archives. 1934 (48 Stat., 680, 698, 770) ; sections Joint Congressional Committee to make Washington, D. C. 105 (e) and 106 (c) of the Revenue Act an investigation of the Tennessee Val­ of 1935 (49 Stat., 1014, 1018, 1019) ; sec­ ley Authority, or any duly authorized tion 905 of the Social Security Act (49 subcommittee thereof, for the purpose of Stat., 620, 641) ; sections 55 (a), 351 (c), CONTENTS—Continued carrying out the provisions of Public and 503 (a) of the Revenue Act of 1936 Resolution 83, approved April 4, 1938, T itle 24—Housing Credit: (49 Stat., 1648, 1671, 1733, 1738) ; and (Seventy-fifth Congress) (52 Stat. 154); Home Owners’ Loan Corpora­ sections 55 (a), 409, 601 (e), and 602 (c) such inspection to be in accordance and tion: Page of the Revenue Act of 1938 (52 Stat., 447, upon compliance with the rules and reg­ Marketing of fruits and other 564, 565, 567), it is hereby Ordered that ulations prescribed by the Secretary of produce of California (1) income, excess-profits, and capital the Treasury in the Treasury Decision properties______! 2686 stock tax returns made under the Reve­ relating to the inspection of returns by T itle 26—Internal R evenue: nue Act of 1938, the Revenue Act of 1936, that committee, approved by me this Bureau of Internal Revenue: the Revenue Act of 1935, the Revenue Act date.1 Income tax, cancelation of in­ of 1934, the National Industrial Recovery This order shall be published in the debtedness and reduction Act, the Revenue Act of 1932, the Reve­ F ederal R egister. of basis of debtor’s prop­ nue Act of 1932 as amended by the Na­ F ranklin D Roosevelt erty in proceedings under tional Industrial Recovery ¡.Act, and under Bankruptcy Act of 1898, the prior Revenue Acts, (2) estate and T he White H ouse as amended______2686 gift tax returns made under the Revenue Nov. 14,1938. \ Regulations governing inspec­ Act of 1932 or the Revenue Act of 1932 as [No. 8006] tion of tax returns by amended, and filed after June 16, 1933, Special Joint Congres­ (3) returns made under Title IX of the [F. R. Doc. 38-3418; Filed, November 14,1938; sional Committee to make Social Security Act, and (4) returns 12:31p.m .] an investigation of Ten­ made under any of the said Acts as nessee Valley Authority_ 2692 amended, shall be open to inspection in Regulations governing in­ accordance and upon compliance with Rules, Regulations, Orders spection of tax returns of the rules and regulations prescribed by individuals, partnerships, the Secretary of the Treasury in the TITLE 7—AGRICULTURE estates, trusts, etc______2689 Treasury Decision relating to the inspec­ T itle 29—Labor: tion of such returns, approved by me BUREAU OF ENTOMOLOGY AND Children’s Bureau: this date.1 PLANT QUARANTINE Child labor regulations, ac­ F ranklin D R oosevelt ceptance of State certifi­ [B .E .P.Q .— 482] T he White House, ca tes_- _____ 2693 November 12, 1938. T reatment R equirement of N oninfested T itle 43—P ublic Lands: Bureau of Reclamation: [No. 8005] H olland Narcissus B ulbs as a Condi­ tion of E ntry R evoked Owyhee Project, Idaho-Ore­ [F. R. Doc. 38-3419; Filed, November 14,1938; gon, first form reclama- 12:31 p. m.] N ovember 10, 1938. tion withdrawal______2693 On January 14, 1935, as authorized in General Land Office: EXECUTIVE ORDER regulation 3, as revised on said date, of Stock Driveway Withdrawal the Rules and Regulations Supplemental No. 77, Arizona No. 3, re­ I nspection of Income and Excess- to Notice of Quarantine No. 37, the an­ voked ______2693 P rofits Tax R eturns by the S pecial nouncement was made that on and after J oint Congressional Committee to NOTICES December 15,1936, narcissus bulbs would Make an Investigation of the Ten­ be authorized entry under permit in un­ Civil Aeronautics Authority: nessee Valley Authority limited numbers for any purpose, subject Hearings on applications for By virtue of the authority vested in to inspection and certification in the certificates of public con­ me by section 257 (a) of the Revenue country of origin and reinspection at the venience and necessity: Airline Feeder System, Inc__ 2694 1 See page 2689. 1 See page 2692. FEDERAL REGISTER, Tuesday, November 15, 1938 2681 port of entry in the United States with cultural practices and sanitary measures Ai VOTING ELIGIBILITY the understanding that any shipments employed in an effort to reduce the bulb All farmers who were erigaged in the found to be infested would be rejected. nematode infestation to the minimum. production of cotton in 1938 are eligible At the same time, revocation of the do­ The field examinations revealed an al­ to vote in the referendum (except as pro­ mestic Narcissus Bulb Quarantine No. 62 most complete absence of bulb nematode vided in tiie following paragraph). Any was announced, effective April 1, 1935. infestations in the narcissus plantings. person who shared in the proceeds of the On August 1, 1936, in accordance with In view of this condition and the sani­ 1938 cotton crop as owner (other than the authority contained in regulation 9 tary measures practiced, which involve a landlord of a standing-rent or fixed- of said Notice of Quarantine No. 37, it repeated field examinations during the rent tenant), tenant, or sharecropper was further announced that, as a condi­ growing season, supplemented by inspec­ shall be considered as having been en­ tion of entry, the treatment of narcissus tion and certification of the bulbs at the gaged in the production of cotton in 1938. bulbs would be required since external time of shipment, it is evident, so long Farmers who planted cotton in 1938 but examination of these bulbs could not be as the above conditions exist, that the produced no cotton on such acreage for relied upon to determine their freedom bulb nematodes risk incident to the im­ any reason except willful neglect to farm from infestation by the bulb nematode, portation of Holland narcissus bulbs does the planted acreage, or who made ar­ Ditylenchus dipsaci. Those in interest not justify the continuation of the re­ rangements to plant cotton in 1938 but were informed in a circular issued Sep­ quirement that all importations of these were prevented from planting by flood, tember 16, 1936, of the “latest approved bulbs be given the hot-water treatment excessive rainfall, or drought, shall be treatment” to be employed with respect as a condition of entry. This require­ regarded as having been engaged in the to all entries of narcissus bulbs. ment, therefore, will not be in effect on production of cotton in 1938 and there­ and after August 15, 1939. On and after Since it was a matter of record that fore eligible to vote. imported and domestic bulbs other than that date, all such importations, in ac­ Since marketing quotas are not appli­ cordance with the provisions of regula­ narcissus were known hosts of the bulb cable to cotton the staple of which is 1V2 nematode, a conference was held in tion 7 of tiie Nursery Stock, Plant, and inches or more in length, a person who Seed Quarantine No. 37, shall be accom­ Washington on December 15, 1936, to was engaged in the production of such consider the desirability of treating all panied by a certificate certifying that the bulbs have been thoroughly inspected at cotton in 1938 is not eligible to vote, un­ known hosts of the bulb nematode en- less in 1938 he was also engaged in the terable under the Nursery Stock, Plant, the time of packing and found or be­ lieved to be free of injurious plant dis­ production of cotton the staple of which and Seed Quarantine No. 37. The fol­ eases and insect pests. _ Finally, upon was less than IY2 inches in length. lowing day, December 16, 1936, a hear­ arrival at the American ports of entry, No farmer (whether an individual, ing was held1 to consider the advisabil­ all shipments will be examined by in­ partnership, corporation, association, or ity of establishing a domestic plant spectors of the Bureau of Entomology other legal entity) shall be entitled to quarantine for the purpose of requiring and Plant Quarantine and this examina­ more than one vote in the referendum, tiie treatment of narcissus bulbs and tion will include the cutting of suspi­ even though he may have been engaged other known hosts of the bulb nematode cious-looking bulbs when necessary to in the production of cotton in two or more as a prerequisite to interstate shipment. determine their freedom from infestation communities, counties, or States in 1938. On February 15, 1937, it was announced by the bulb nerqatode. Any shipments In the event several persons, su

whom a ballot form is issued if he is not keting Quota Ballots”, the information the words and phrases defined in this already listed thereon prior to the time contained on the forms Cotton 305 re­ section shall have the meanings herein the ballot form is issued to him. ported to it and forward via air mail assigned to them, unless the context or 10. Enter an “X ” in the designated special delivery two fully executed forms subject matter otherwise requires. column «i form Cotton 303 beside the Cotton 306 to the applicable Regional name and address of each farmer to Director, Agricultural Adjustment Ad­ (a) Act means the Agricultural Ad-> whom a ballot form is issued and who ministration, Washington, D. C., not later justment Act of 1938 and any amend­ places his ballot in the ballot box than 7 calendar days after the date of ments thereto. (whether or not his ballot is challenged). the referendum. If one sheet proves in­ (b) Committee means the committees 11. Close the polls and discontinue ac­ sufficient for listing the information with within a county or community utilized ceptance of ballots at 5 o’clock p. m., respect to all counties in the State, addi­ under the Agricultural Adjustment Act local standard time (unless a later hour tional sheets properly numbered and of 1938. “County committee,” “commu­ is fixed by the State committee) on the identified and securely attached to the nity committee,” or “local committee” date of the referendum. first sheet may be used for continuation, shall have corresponding meanings in 12. Immediately after closing the polls, in which case totals and signatures should the connection in which they are used. open the ballot box and canvass the bal­ be entered only on the last sheet. One (c) Diversion means the normal pro­ lots cast, which canvass shall be kept fully executed copy of each form Cotton duction of the acres on the farm di­ open to the public. 305 and form Cotton 306 shall be per­ verted from the production of tobacco 13. Tabulate and record the results of manently filed in the State office of the under agricultural adjustment or con­ the referendum on form Cotton 304. Agricultural Adjustment Administration. servation programs. The number of challenged ballots cast 3. Complete the investigation of any (d) Farm means all adjacent or near­ shall be entered on form Cotton 304 in report from any county regarding con­ by farm land under the same owner­ the space provided and will not, of troversies, irregularities, or the correct­ ship which is operated by one person, course, be shown as being either for or ness of summaries of the referendum, not including also: against the marketing quotas. If any later than 10 calendar days after the date (i) ' Any other adjacent or nearby farm ballot is found to be mutilated or marked of the referendum, and forward its find­ land operated by the same person (as in siich a way so that it cannot be deter­ ings in such cases to the applicable Re- j part of the same unit with respect to the mined whether the voter approved or gional Director. rotation of crops and with workstock, opposed the marketing quotas, it shall E. RESULTS OF REFERENDUM farm machinery, and labor substantially not be counted as a ballot cast but the separate from that for any other land) number of such spoiled ballots shall be Final and official tabulation of the the inclusion of which is requested or entered in the space provided, and such votes cast in the referendum will be made agreed to, within the time and in the ballots placed in an envelope marked by the Agricultural Adjustment Adminis­ manner specified by the Agricultural Ad­ “Spoiled Ballots*1; followed by the desig­ tration and the result of the referendum justment Administration, by the operator nation of the community. announced by the Secretary of Agricul­ and all the owners who are entitled to 14. Certify to the accuracy of the exe­ ture. The reports on Cotton 306 and re­ share in the proceeds of the crop on any cuted forms Cotton 303 and Cotton 304 lated papers shall be permanently filed of the land to be included in the farm, by signing in the spaces provided. with such tabulation and shall remain which request and agreement shall be 15. Notify the county committee by available for public inspection. applicable to the designation of the land telephone or in person aá soon as pos­ Each county committee is authorized included in such farm both under the sible after the closing of thè polls as to* give out unofficial reports of the total Agricultural Conservation Program and to the preliminary count of “Yes” and “Yes” and total “No” votes in its county under the flue-cured tobacco quota pro­ “No” votes in the community. to the public press and to other inquirers. cedure for 1939; 16. Seal the voted ballots (including The State committee is authorized to re­ (ii) Any field-rented tract (whether those challenged), the spoiled ballots, lease to the press and other inquirers the operated by the same or another person) the register sheet, and the community unofficial results of the referendum for which, together with any other land in­ summary in one or more envelopes ap­ the respective State by counties as rapidly cluded in the farm, constitutes a unit propriately identified by the designa­ as the votes in the various counties are with respect to the rotation of crops: tion of the community and deliver them tabulated. Provided, That land not under the same to the county committee not later than If the Administrator of the Agricul­ ownership shall be included in the same 8:30 o’clock a. m., Monday, December tural Adjustment Administration or the farm only if the county committee deter­ 12, 1938, with the unused ballot and Secretary of Agriculture deems it neces­ mines that all of such land is customarily other forms. The chairman of the com­ sary, the report of any community refer­ regarded in the community as constitut­ munity referendum committee shall be endum committee, county committee, or ing one farm. A farm shall be regarded responsible for the safe delivery of such State committee shall be reexamined and as located in the county or the local ad­ reports, ballots, and forms to the county checked by such persons or agencies as ministrative area within the county, as committee. may be designated. the case may be, in which the principal 17. Post an executed copy of form Done at Washington, D. C., this 10th dwelling is situated, or if there is no Cotton 304, as soon as it is executed, at day of November, 1938. Witness my dwelling thereon, it shall be regarded as a conspicuous place at the polling place hand and the seal of the Department of located in the county or local administra­ and see that it remains posted and ac­ Agriculture. tive area, as the case may be, In which cessible to the public for at least three the major portion of the farm is located. calendar days after the date of the hold­ [ seal] H . A. W allace, ing of the referendum, Secretary of Agriculture. (e) Marketing year means the period [F. R. Doc. 38-3405; Filed, November 12, 1938; beginning with the 1st day of July in one d. instructions to state committee 11:50 a. m.] year and ending with the 30th day of The State committee shall be June in the next calendar year. 1938-39 charge of and responsible for the c< marketing year and 1939-40 marketing ducting of the referendum in the St [Form 39—Tobacco 3] year mean the marketing years beginning and shall: in the calendar years 1938 and 1939, re­ P rocedure for 1939 F lue-Cured Tobacco spectively. 1. Notify the applicable Regional Di­ Quotas (f) New farm means a farm on which rector by telegraph as to the preliminary tobacco is produced in the year 1939 and count in the State of votes for and votes PART 1----GENERAL against marketing quotas. on which tobacco was not produced in S ec. 1. Definitions.—As used in this any of the years 1935,1936,1937 or 1938. « 2. Summarize . on form Cotton 306, procedure and in all instructions, forms, (g) Old farm means a farm on which state Tabulation of 1939 Cotton Mar- and documents in connection therewith, tobacco is produced in the year 1939 and V 2684 FEDERAL REGISTER, Tuesday, November 15, 1938

on which tobacco was also produced in shall be adjusted so as to equal the (f) Adjustments to balance.—The sum one or more of the years 1935, 1936, 1937 number of pounds which would have of the upward adjustm ents for all farms and 1938. been computed for the farm as its 1938 in the county shall not exceed the sum of (h) Quota means the farm marketing quota upon the basis of the adjusted the downward adjustments for all farms quota established pursuant to Section 313 data and a farm yield which the com­ in th e county, except with the approval of the Act. 1938 quota and 1939 quota mittee finds is a normal yield for the of the State committee. mean the quotas established for a farm farm. A normal farm yield shall be that (g) Statement of reasons for adjust­ for the 1938-39 marketing year and the yield which the committee 'determines ment.—Where the adjustment made pur­ 1939-40 marketing year, respectively. could reasonably be obtained from the suant to th is Section 3 exceeds 10 per­ (i) State committee means the per­ farm. In making the determination, the cent of the 1938 quota, the committee sons designated within any State to assist committee shall take into consideration shall make a brief explanatory state­ in the administration of the Act in the the type of soil, topography and pro­ ment in writing of the reasons why such State. duction facilities of the farm, the yields adjustment is necessary in order to take (j) Three-year average means the av­ obtained on other farms in the locality, into adequate account the factors re­ erage tobacco production and diversion which are similar with respect to such quired to be taken into consideration in for the farm during the years 1936, 1937, factors, the yields obtained from the making such adjustment. and 1938. farm during years for which records (h) Adjustments subject to approval (k) Tobacco means tobacco classified indicating such yields acceptable to the by the State committee.—All adjust­ in Service and Regulatory Announce­ committee are available, and the effect ments made by the committee pursuant ment Numbered 118 of the Bureau of of flood, drought, hail, other abnormal to this Section 3 shall be subject to ap­ Agricultural Economics of the United weather conditions, fire, plant-bed and proval by the State committee. States Department of Agriculture, as other diseases, upon the yields obtained types 11, 12, 13, and 14 and collectively from the farm in such years. Sec. 4. Determination of preliminary known as flue-cured tobacco. (b) Adjustment for estimated 1938 quota from committee adjusted quota.— marketings.—In order to take into ac­ (a) To any farm which has a committee S ec. 2. Gender and number of terms.— adjusted quota equal to the smaller of Any term used in the masculine gender count the estimated marketings from the farm during the 1938-39 marketing year, 3200 pounds or the farm’s three year or in the singular number shall also be average, such quota will be assigned as construed or applied in the feminine or the 1938 quota, as adjusted pursuant to subsection (a) above, shall be adjusted its preliminary quota. neuter gender, or in the plural person, (b) The total of the preliminary wherever the context or application of upward if such marketings exceed the 1938 quota and downward if such mar­ quotas assigned pursuant to subsection such term so requires. (a) shall be deducted from an amount S ec. 3. Instructions and forms.—The ketings are less than the 1938 quota. The amount of the upward or downward ad­ equal to 99 percent of the State market­ Administrator of the Agricultural Ad­ ing quota, to determine the balance of justment Administration of the United justment, as the case may be, shall be 20 percent of the difference between such quota available. States Department of Agriculture shall (c) The total of the committee ad­ cause to be prepared and issued with his marketings and the 1938 quota. (c) Adjustment for past marketings, justed quotas for all farms to which pre­ approval such instructions and such liminary quotas have not been assigned forms as may be necessary or expedient etc.—The committee shall adjust the 1938 quota (as adjusted pursuant to sub­ pursuant to subsection (a) shall be re­ for carrying out this procedure for de­ duced to an amount equal to the bal­ termining farm quotas. sections (a) and (b) above) if they find, upon consideration of the data used in ance of quota available, determined pur­ PART Et— ESTABLISHMENT OP PRELIMINARY computing the 1938 quota and other in­ suant to subsection (b) . This reduc­ QUOTAS formation available to them, that adjust­ tion will be made by reducing the com­ Sec. 1. Preliminary quotas.—Prelim i­ ment is necessary in order to take into mittee adjusted quotas for all farms, to nary 1939 quotas shall be established, as adequate account past marketings of which a preliminary quota has not been provided in this procedure, for all farms tobacco, making due allowance for ab­ assigned, by the percentage which the for which 1938 quotas were established. normal weather conditions, plant-bed and balance of quota available is of the total No preliminary quota shall be established other diseases; land, labor and equipment of such committee adjusted quotas. The for any farm for which a 1938 quota was available for the production of tobacco; amount of the committee adjusted quota not established. Quotas for such farms crop-rotation practices; and the soil and for each such farm as so reduced shall shall be established in accordance with other physical factors affecting the pro­ be the farm’s preliminary quota; pro­ such procedure as the Secretary of Agri­ duction of tobacco. vided that if the preliminary quota so culture may hereafter prescribe. determined for any farm is less than the (d) Limit of adjustment.—The sum of smaller of 3200 pounds of the farm’s Sec. 2. Determination of preliminary the adjustments made, pursuant to sub­ quota.—The preliminary quota for a three year average, the amount of the sections (b) and (c) of this section, for preliminary quota shall be increased by farm shall be determined, in accordance any farm shall not exceed 20 percent of with the provisions of Section 4, from an amount sufficient to provide for such the 1938 quota for the farm, as adjusted farm a preliminary quota equal to the the “committee adjusted quota.” The pursuant to subsection (a) of this sec­ committee adjusted quota for the farm sm alter of 3200 pounds or the farm’s tion; provided that in the case of a farm, three year average. shall be determined in accordance with on which tobacco was produced in 1938 Sec. 5. Final quotas.—If the national the provisions of Section 3. and on which tobacco was not produced Sec. 3. Determination of committee marketing quota is effective for the 1939- in any of the years 1934, 1935, 1936 or 40 marketing year, the preliminary quota adjusted quota. — The committee ad­ 1937, the sum of such adjustments may justed quota for a farm shall be deter­ established for a farm shall be the final be greater if recommended by the com­ 1939 quota, subject to adjustment as mined by adjustment of the 1938 quota munity and county committee, and ap­ (prior to any adjustment thereof by a proved by the State committee, in order follows: review committee) for the farm as pro­ to provide a committee adjusted quota If there is any material change for the vided below. which will adequately take into account farm in 1939 with respect to (a) past (a) Adjustment of data and farmthe land, labor and equipment available marketings, or (b) land, labor and equip­ yield.—If the committee finds that the for the production of tobacco on the ment available for the production of data used in computing the 1938 quota farm. tobacco, or (c) crop-rotation practices, requires adjustment or that the farm (e) Minimum quota.—The committee or (d) the soil and other physical factors yield used in computing the 1938 quota adjusted quota shall in no case be less affecting the production of tobacco, as was not a normal yield for the farm, than the smaller of 3200 pounds or the compared w ith such factors in 1938, and the 1938 quota established for the farm three-year average for the farm. such change was not given consideration FEDERAL REGISTER, Tuesday, November 15, 1938 2685 to the establishment of the preliminary Idaho: Nez Perce, November 1, 1941. Utah: Beaver, November 1, 1941; Car­ quota, the farm’s quota shall be the Indiana: Brown, November 1, 1941; bon, November 1,1941; Emery, November preliminary quota adjusted to take such Dearborn, November 1, 1941; Henry, No­ 1, 1941; Piute, November 1, 1941; Salt change into account; provided that the vember 1, 1941. Lake, November 1, 1941; Tooele, Novem­ farm’s 1939 quota shall not exceed (ex­ Iowa: Lee, November 1, 1941; Monroe, ber 1,1941; Wayne, November 1, 1941. cept in the case of a farm which is November. 1, 1941; O’Brien, November 1, Virginia: Accomac, November 1, 1941; entitled to a quota of the smaller of 1941; Polk, November 1, 1941. Chesterfield, November 1,1941; Loudoun, 3200 pounds or the farm’s three year Kansas: Pawnee, November 1, 1941; November 1, 1941. average) the number of pounds obtained Republic, November 1, 1941; Rice, No­ West Virginia: Berkeley, November 1, by multiplying 110 percent of the farm ’s vember 1, 1941. 1941. 1939 tobacco acreage by the farm yield. Louisiana: Acadia, November 1, 1941; Wisconsin: Adams, November 1, 1944; Done at Washington, D. C., this 12th Allen, November 1, 1941; Ascension, No­ Oconto, November 1, 1944. day of November, 1938. Witness my vember 1, 1941; Assumption, November Wyoming: Big Horn, November 1,1941. hand and the seal of the Department of 1, 1941; Avoyelles, November 1, 1941; Declaration No. 12, dated October 1, Agriculture. Bossier, November 1, 1941; Calcasieu, 1936, as amended,8 is hereby further [seal! H. A. W allace, November 1, 1941; Cameron, November amended accordingly. Secretary of Agriculture. 1, 1941; Catahoula, November 1, 1941; Concordia, November 1, 1941; Evange­ [seal! J. R. M ohler, [F. R. 38-3422; Filed, N ovem ber 14,1938; Chief of Bureau. 12:42 p.m .] line, November 1, 1941; Franklin, JIo- vember 1, 1941; Grant, November 1, [F. R. Doc. 38-3406; Filed, November 12,1938; 1941; Jefferson Davis, November 1, 1941; 12:30 p.m .] TITLE 9—ANIMALS AND ANIMAL Lafayette, November 1, 1941; LaSalle, PRODUCTS November 1, 1941; Orleans, November 1, 1941; Plaquemines, November 1, 1941; TITLE 12—BANKING AND CREDIT BUREAU OF ANIMAL INDUSTRY Rapides, November 1, 1941; St. James, [Amendment 25 to Declaration No. 12 *] November 1, 1941; St. Landry, November BOARD OF GOVERNORS OF THE 1, 1941; St. Martin, November 1, 1941; FEDERAL RESERVE SYSTEM D eclaring N ames of C ounties P laced in Tangipahoa, November 1, 1941; Tensas, Modified T uberculosis -F ree A c­ Interlocking B ank D irectorates U nder November 1, 1941; Terrebonne, Novem­ credited A reas the Clayton A ct ber 1, 1941; Vermilion, November 1, 1941. N ovember 1, 1938. Maryland: Calvert, November 1, 1941; On November 7, 1938, the Board of In accordance with Section 2 of Regu­ Garrett, November 1, 1941; Talbot, No­ Governors of the Federal Reserve System lation 7 of B. A. I. Order 309, as amended vember 1, 1941. adopted the following resolution: September 10,1936,* the following named Michigan: Chippewa, November 1, • Resolved, That Regulation L (12 CFR. counties in States named are hereby de­ 1941; Crawford, November 1, 1941; 212), Interlocking Bank Directorates Un­ clared “Modified Accredited Areas” until Houghton, November 1, 1941; Luce, No­ the date given opposite each county der the Clayton Act, be amended, effec­ vember 1, 1941; Mackinac, November 1, tive immediately, as follows: named. 1941; Ottawa, November 1, 1941. Puerto Rico: Dorado, November 1, Minnesota: Anoka, November 1, 1941; (1) By adding the following after the semicolon at the end of section 3 (a) 1941; Jayuya, November 1, 1941; Juana Kandiyohi, November 1, 1941. Diaz, November 1, 1941; Toa Baja, No­ Mississippi: Amite, November 1, 1941; (12 CFR. 212.3 (a)) thereof: vember 1, 1941. Hancock, November 1, 1941; Hinds, No­ “and any private banker or any director, vember 1, 1941; Lincoln, November 1, officer, or employee of a member bank In accordance with Section 2 of Regu­ of the Federal Reserve System who is lation 7 of B. A. I. Order 309, as amended 1941; Pearl River, November 1, 1941; Pike, November 1, 1941; Wilkinson, No­ lawfully serving as a director, officer, or September 10,1936, the following named employee of a Morris Plan bank or simi­ counties in the States named having vember 1, 1941. lar institution on January 31, 1939 may completed the necessary retests for re­ Missouri: Adair, November 1, 1941; Lawrence, November 1, 1941; Linn, No­ continue such service until August 1, accreditation, are hereby continued in 1939;” the status of “Modified Accredited Areas” vember 1, 1941; Mercer, November 1, 1941; Schuyler, November 1, 1941. (2) By changing the period at the end until the date given opposite each county of section 3 (12 CFR.212.3) to a semicolon named. Nebraska: Gage, November 1, 1941. New Jersey: Mercer, November 1,1940; and adding at the end of that section a Alabama: Barbour, November 1, 1941; Warren, November 1,1940. new subsection “ (e )” (J.2 CFR.212.3 (e )) Butler, November 1, 1941; Conecuh, No­ as follows: vember 1, 1941; Crenshaw, November 1, North Carolina: Davie, November 1, “(e) Any director, officer, or employee 1941; Dale, November 1, 1941; Geneva, 1941; Iredell, November 1,1941; Scotland, of any member bank of the Federal Re-, November 1, 1941; Lamar, November 1, November 1, 1941. serve System who, on August 23, 1935, 1941; Marion, November 1, 1941; Mar­ Ohio: Lake, November 1, 1941; Noble, was lawfully serving at the same time as shall, November 1, 1941; Monroe, No­ November 1, 1941. a private banker or as a director, officer, vember 1, 1941; Wilcox, November 1, Oklahoma: Beaver, November 1, 1941; or employee of any other bank, banking 1941. Cotton, November 1, 1941; Custer, No­ association, savings bank, or trust com­ Arkansas: Washington, November 1, vember 1,1941; Major, November 1,1941. pany and Whose services in such capaci­ 1941. Pennsylvania: Bedford, November 1, ties have been continuous since such date, Florida: Gilchrist, November 1, 1941; 1941. may continue, until August 1, 1939, ^to Suwanee< November 1, 1941. South Carolina: Hampton, November serve such member bank and not more Georgia: Colquitt, November 1, 1941; 1, 1941. than one other such bank, banking as­ Decatur, November 1, 1941; Dougherty, South Dakota: Custer, November I, sociation, savings bank, trust company November 1, 1941; Grady, November 1, 1941. or private banker.” 1941; Meriwether, November 1, 1941; Tennessee: Macon, November 1, 1941. (Sec. 8, 38 Stat. 732; Sec. 329, 49 Stat. Thomas, November 1, 1941; Troup, No­ Texas: Falls, November 1, 1941; Free­ 717; Sec. 11, 38 Stat. 734; Sec. 602 (d), vember 1, 1941; Worth, November 1, 1941. stone, November 1,1941; Leon, November 48 Stat. 1102; 15 U. S. C. 19 and Sup. HI; 1,1941; Nolan, November 1,1941; Nueces, 15 U. S. C. 2 D 1 Supplements footnote to 9 CFR 3.303. November 1,1941; Williamson, November 21 F. R. 1338. 1, 1941. * 3 F. R. 2481DI. 2686 FEDERAL REGISTER, Tuesday, November 15, 1938

[Reg. L, Bd. Govs. P. R. S. Revised el­ Chapter X—Corporate R eorganizations tax upon Income, the basis of the debtor’s ective Jan. 4, 1936, as amended effective property (other than money) or of such Sec. 268. Except as provided in section 270 property (other than money) as is trans­ Nov. 7, 1938.1 of this Act, no income or profit, taxable under ferred to any person required to use the any law of the United States or of any State [seal] S. R. Carpenter, debtor’s basis in whole or in part be now in force or which, may hereafter be en­ decreased by an amount equal to the Assistant Secretary. acted, shall, in respect to the adjustment of amount by which the indebtedness of the the indebtedness of a debtor in a proceeding debtor, not including accrued interest un­ [P. R. Doc. 38-3401; Piled, November 10,1938; under this chapter, be deemed to have ac­ 3:29 p.m .] paid and not resulting in a tax benefit on crued to or to have been realized by a debtor, any income tax return, has been cancelled by a trustee provided for in a plan under this or reduced in a proceeding under this chap­ chapter, or by a corporation organized or ter. The Commissioner of Internal Revenue TITLE 24—HOUSING CREDIT made use of for effectuating a plan under with the approval of the Secretary of the this chapter by reason of a modification in Treasury, shall prescribe such regulations as HOME OWNERS’ LOAN or cancelation in whole or in part of any of he may deem necessary in order to reflect the indebtedness of the debtor in a proceed­ such decrease in basis for Federal income CORPORATION ing under this chapter. tax purposes and otherwise carry into effect Sec. 269. Where it appears that a plan has the purposes of this section. M arketing op F ruits and Other P ro­ for one of its principal purposes the avoid­ Sec. 399. (4) sections 395 and 396 of this duce of California Properties ance of taxes, objection to its confirmation Act shall apply to compositions and exten­ may be made on that ground by the Secretary sions confirmed under sections 12 and 74 SPECIAL RESOLUTION AMENDING PART 1 OF of the Treasury, or, in the case of a State, before the effective date of this amendatory by the corresponding official or other person CHAPTER IV, TITLE 24 OF THE CODE OF Act and to compositions and extensions so authorized. Such objections shall be heard which may be confirmed under sections 12 FEDERAL REGULATIONS BY ADDING THERETO and determined by the judge, independently and 74 on and after such effective date. A NEW SECTION TO BE NUMBERED SECTION of other objections which may be made to the Chapter XII—Real P roperty Arrangements 4 0 1 .6 2 confirmation of the plan, and, if the judge shall be satisfied that such purpose exists, he by Persons Other T han Corporations S ection 401.62 Marketing of fruits and. shall refuse to confirm the plan. Sec. 520. Except as provided in section other produce of California properties.— Sec. 270. In determining the basis of prop­ 522 of this Act, no income or profit, tax­ erty for any purposes of any law of the able under any law of the United States The Regional Manager at San Francisco, United States or of a State imposing a tax or of any State now In force or which may with the advice of the Regional Counsel upon income, the basis of the debtor’s prop­ hereafter be enacted, shall, in respect to the at San Francisco, is authorized to exe­ erty (other than money) or of such property adjustment of the indebtedness of a debtor cute and deliver on behalf of the Corpo­ (other than money) as is transferred to any in a proceeding under this chapter, be person required to use the debtor’s basis in deemed to have accrued to or to have been ration contracts and agreements for the whole or in part shaU be decreased by an realized by a debtor, by a trustee provided picking, packing, hauling and marketing amount equal to the amount by which the for In an arrangement under this chapter, of fruits and other produce and issue of indebtedness of the debtor, not including or by a corporation organized or made use accrued interest unpaid and not resulting in of for effectuating an arrangement under real property situate within the State of a tax benefit on any income tax return, has this chapter by reason of a modification in California and under the jurisdiction of been canceled or reduced in a proceeding or cancelation in whole or in part of any of the Property Management Division at under this chapter. The Commissioner of the indebtedness of the debtor in an ar­ such prices and upon such terms and Internal Revenue, with the approval of the rangement consummated under this chapter. Secretary of the Treasury, shall prescribe such Sec. 521. Where it appears that an ar­ conditions as he may deem to be in the regulations as he may deem necessary in order rangement has for one of its principal pur­ best interests of the Corporation, and to to reflect such decrease in basis for Federal poses the evasion of taxes, objection to its confirmation may be made on that ground do all things necessary or proper to effect income-tax purposes and otherwise carry into by the Secretary of the Treasury or, in disposition of such fruits, produce and effect the purposes of this section. the case of a State, by the corresponding issue in pursuance of any such contract Sec. 276. c. the provisions of sections 77A official or other person so authorized. Such or agreement so executed and delivered, and 77B of chapter VTH, as amended, of the objections shall be heard and determined by Act entitled “An Act to establish a uniform the judge, independently of other objec­ and the expenses incurred in connection system of bankruptcy throughout the United tions which may be made to the confirma­ with the performance of such contracts States”, approved July 1, 1898, «hail continue tion of the arrangement, and, if the judge and agreements may be paid by the Cor­ in full force and effect with respect to pro­ shall be satisfied that such purpose exists, ceedings pending under those sections upon he shall refuse to confirm the arrangement. poration on vouchers approved by the the effective date of this amendatory Act, Sec. 522. In determining the basis of said Regional Manager. except that— property for any purposes of any law of the (Home Owners’ Loan Act of 1933 (48 * • * * • United States or of a State imposing a tax Stat. 128, 129) as amended by Sections 1 (3) sections 268 and 270 of this Act shall upon income, the basis of the debtor’s prop­ apply to any plan confirmed under section erty (other than money) or of such property and 13 of the Act of April 27, 1938 (48 77B before the effective date of this amendar (other than money) as is transferred to any Stat. 643-647) and particularly by Sub- tory Act and to any plan which may be con­ person required to use the debtor’s basis in Sections a and k of Section 4 of said Act firmed under section 77B on and after such whole or in part shall be decreased by an effective date, except that the exemption amount equal to the amount by which the as amended.) provided by section 268 of this Act may be indebtedness of the debtor, not including ac­ Adopted by the Federal Home Loan disallowed if it shall be made to appear that crued interest unpaid and not resulting in a Bank Board on November 7, 1938. any such plan had for one of its principal tax benefit on any income tax return, has purposes the avoidance of income taxes, and been cancelled or reduced in a proceeding [seal] R. L. Nagle, except further that where such plan has not under this chapter. The Commissioner of Secretary. been confirmed on and after such effective Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe [P. R. Doc. 38-3417; Piled, November 14,1938; date, section 269 of this Act shall apply where practicable and expedient. such regulations as he may deem necessary 11:22 a. m.] in order to reflect such decrease in basis for Chapter XI—Arrangements Federal income tax purposes and otherwise carry into effect the purposes of this section. TITLE 26—INTERNAL REVENUE Sec. 395. Except as provided in section 396 Sec. 526. (4) sections 520 and 522 of this of this Act, no income or profit, taxable wider Act shall apply to compositions and exten­ BUREAU OF INTERNAL REVENUE any law of the United States or of any State sions confirmed under section 74 before the now in force or which may hereafter be effective date of this amendatory Act and to [T. D. 4871] enacted, shall, in respect to the adjustment compositions and extensions which may be of the indebtedness of a debtor in a proceed­ confirmed under section 74 on and after such I ncome Tax ing under this chapter, be deemed to have effective date, except that the exemption accrued to or to have been realized by a provided by section 520 of this Act may be CANCELATION OF INDEBTEDNESS AND REDUC­ debtor or a corporation organized or made use disallowed if it shall be made to appear that TION OF BASIS OF DEBTOR’S PROPERTY IN of for effectuating an arrangement under this such composition or extension, or composi­ PROCEEDINGS UNDER BANKRUPTCY ACT OF chapter by reason of a modification in or tion and extension, had for one of its prin­ cancellation in whole or in part of any such cipal purposes the avoidance of income taxes, 1 8 9 8 , AS AMENDED indebtedness in a proceeding under this chap­ and except further that where such compo­ To Collectors of Internal Revenue and ter: Provided, however, That if it shall be sition or extension, or composition and ex­ made to appear that the arrangement had for tension, has not been confirmed on or alter Others Concerned: . , one of its principal purposes the evasion of such effective date, section 521 of this Act P aragraph A. The Bankruptcy Act of any income tax, the exemption provided by shall apply where practicable and expedient. 1898, as amended by the Act of June 22, this section shall be disallowed. Chapter XIII—Wage Earners’ Plans Sec. 396. In determining the basis of 1938 (Public, No. 696, Seventy-fifth Con­ property for any purposes of any law of Sec. 679. No income or profit, taxable gress) provides in part as follows: the United States or of a State imposing a under any law of the United States or of any FEDERAL REGISTER, Tuesday, November 15, 1938 2687

State now in force or which may hereafter “(4) a ‘wage earner’s plan’ confirmed reduction of indebtedness required by the be enacted, shall, in respect to the adjust­ under Chapter XTTT of the Bankruptcy Bankruptcy Act, as amended by the Act ment of the indebtedness of a debtor in a proceeding u n der. this chapter, be deemed Act, as amended. of June 22,1938 (Public, No. 696, Seventy- to have accrued to or to have been realized fifth Congress), see article 113 (b)-2.” bv a debtor by reason of a modification in or "If, however, such plan of corporate cancelation in whole or in part of any such reorganization or agreement of compo­ Regulations 94 are amended by in­ indebtedness in a proceeding under this serting after article 113 (b)-l thereof chapter: Provided, however, That'if it shall sition referred to in (1) to (4) above had be made to appear that the plan had for one for one of its principal purposes the the following new article: of its principal purposes the evasion of any avoidance of income tax, the cancela­ income tax, the exemption provided by this “Art. 113 (b )-2 . Adjusted basis: Can­ section shall be disallowed. tion or reduction of indebtedness, under celation of indebtedness.—In addition to Sec. 686. (4) section 679 of this Act shall such plan or agreement confirmed un­ the adjustments provided in section 113 apply to compositions and extensions con­ der section 12, 74 or 77B or under Chap­ (b) (1) and article 113 (b)-l which are firmed under section 74 before the effective ter X, XI, XU or XUI of the Bank­ date of this amendatory Act and to compo­ required, to be made with respect to the sitions and extensions which may be con­ ruptcy Act, as amended, may result in cost or other basis of property, a fur­ firmed under section 74 on and after such the realization of income. effective date; ther adjustment shall be made in any “For adjustment of basis of certain case in which there shall have been a Pursuant to the authority contained in property in the case of cancelation or cancelation or reduction of indebtedness sections 62 of the Revenue Acts of 1934 reduction of indebtedness required by in any proceeding under section 12, 74 and 1936 and in the foregoing provisions the Bankruptcy Act, as amended by the (except in the case of a ‘wage earner’ of the Bankruptcy Act of 1898, as Act of June 22, 1938 (Public, No. 696, as defined in the Bankruptcy Act, as amended, the following regulations are Seventy-fifth Congress), see article amended), or 77B or under Chapter X, promulgated: 113 (b) -2 .” XI, or XII of the Bankruptcy Act of Article 22 (a)-14 of Regulations 941 Article 22 (a)-14 of Regulations 86 is 1898, as amended. Such further adjust­ is amended to read as follows: amended to read as follows: ment shall be made in the following manner and order: “Art. 22 (a )-14. Cancelation of indebt­ “Art. 22 (a)-14. Cancelation of in­ edness.—(a) In general.—The cancela­ debtedness.—(a) In general.—The can­ “(1) In the case of indebtedness in­ tion of indebtedness, in whole or in part, celation of indebtedness, in whole or in curred to purchase specific property may result in the realization of income. part, may result in the realization of in­ (other than inventory or notes or ac­ If, for example, an individual performs come. If, for example, an individual counts receivable), whether or not a lien services for a creditor, who in considera­ performs services for a creditor, who in is placed against such property secur­ tion thereof cancels the debt, income in consideration thereof cancels the debt, ing the payment of all or part of such the amount of the debt is realized by income in the amount of the debt is indebtedness, which indebtedness shall the debtor as compensation for his serv­ realized by the debtor as compensation have been canceled or reduced in any ices. A taxpayer realizes income by the for his services. A taxpayer realizes in­ such proceeding, the cost or other basis payment or purchase of his obligations at come by the payment or purchase of his of such property shall be decreased (but less than their face value. (See article obligations at less than their face value. the amount of the decrease shall not be 22 (a)-18.) If a shareholder in a cor­ (See article 22 (a )-18.) If a shareholder more than the amount of the adjusted poration which is indebted to him gratu­ in a corporation which is indebted to basis without reference to this article) itously forgives the debt, the transaction him gratuitously forgives the debt, the by the amount by which the indebted­ amounts to a contribution to the capital transaction amounts to a contribution to ness so incurred with respect to such of the corporation. the capital of the corporation. property shall have been canceled or re­ “(b) Proceedings “under Bankruptcy “ (b) Proceedings under Bankruptcy duced; Act.—Income is not realized by a tax­ Act.—Income is not realized by a tax­ “(2) In the case of specific property payer by virtue of the discharge, under payer by virtue of the discharge, under (other than inventory or notes or ac­ section 14 of the Bankruptcy Act, as section 14 of the Bankruptcy Act, as counts receivable) against which, at the amended, of his indebtedness as the re­ amended, of his indebtedness as the re­ time of the cancelation or reduction of sult of an adjudication in bankruptcy, sult of an adjudication in bankruptcy, the indebtedness, there is a lien (other or by virtue of an agreement among his or by virtue of an agreement among his than a lien securing indebtedness in­ creditors not consummated under any creditors not consummated under any curred to purchase such property) the provision of the Bankruptcy Act, as provision of the Bankruptcy Act, as cost or other basis of such property shall amended, if immediately thereafter the amended, if immediately thereafter the be decreased (but the amount of the de­ taxpayer’s liabilities exceed the value of taxpayer’s liabilities exceed the value of crease shall not be more than the amount his assets. Furthermore, income is not his assets. Furthermore, income is not of the adjusted, basis without reference realized in any case by a taxpayer in the realized in any case by a taxpayer in the to this article) by the amount by which case of a cancelation or reduction of his case of a cancelation or reduction of his the indebtedness secured by such lien indebtedness under— indebtedness under (1) a plan of cor­ shall have been canceled or reduced; porate reorganization confirmed under “(3) Any excess of the total amount “(1) a plan of corporate reorganiza­ section 77B of the Bankruptcy Act, as by which the indebtedness shall have tion confirmed under either section 77B amended, or (2) a composition agreement been so canceled or reduced in such pro­ or Chapter X of the Bankruptcy Act, as confirmed under either section 12 or 74 of ceeding over the sum of the adjustments amended; such Act. If, however, such plan of cor­ made under (I) and (2) shall next be “(2) a composition agreement con­ porate reorganization or agreement of applied to reduce the cost or other basis firmed under either section 12 or 74 of composition had for one of its principal of the property of the debtor (other than the Bankruptcy Act, as amended; purposes the avoidance of income tax, the inventory and notes and accounts receiv­ cancelation or reduction of indebtedness, able, but including property covered by “(3) an ‘arrangement’ or a ‘real prop­ under such plan or agreement confirmed (1) and (2)) as follows: The cost or erty arrangement’ confirmed under under section 12, 74 or 77B of the Bank­ other basis of each unit of property shall Chapter XI or XU, respectively, of the ruptcy Act, as amended, may result in be decreased (but the amount of the de­ Bankruptcy Act, as amended; or the realization of income. crease shall not be more than the amount “For adjustment of basis of certain of tire adjusted basis without reference to 1 1 P. R. I860. property in the case of cancelation or this article) in an amount equal to such No. 222------2 2688 FEDERAL REGISTER, Tuesday, November ¡5, 1938 proportion of such excess as the adjusted amended. Such further adjustment notes receivable or accounts receivable, basis (without reference to this article) shall be made in the following manner as the case may be, bears to the sum of each such unit of property bears to and order: of the adjusted bases of such inventory the sum of the adjusted bases (without “(1) In the . case of indebtedness in­ and notes and accounts receivable. reference to this article) of all the prop­ “For the purposes of this article— erty of the debtor other than inventory curred to purchase specific property and notes and accounts receivable; and (other than inventory or notes or ac­ “(A) Basis shall be determined as of “(4) Any excess of the total amount counts receivable), whether or not a lien the date of confirmation of the plan, by which such indebtedness shall have is placed against such property securing com position or arrangement under been so canceled or reduced over the the payment of all or part of such indebt­ which such indebtedness shall have been sum of the adjustments made under (1), edness, which indebtedness shall have canceled or reduced; (2) and (3) shall next be applied to re­ been canceled or reduced in any such pro­ “(B) Except where the context other­ duce the cost or other basis of inven­ ceeding, the cost or other basis of such wise requires, property means all of the tory and notes and accounts receivable, property" shall be decreased (but the debtor’s property, other than money; as follows: The cost or other basis of in­ amount of the decrease shall not be more “(C) No adjustment shall be made by ventory or potes or accounts receivable, than the amount of the adjusted basis virtue of the cancelation or reduction as the case may be, shall be decreased without reference to this article) by the of any accrued interest unpaid which (but the amount of the decrease shall not amount by which the indebtedness so in­ shall not have resulted in a tax benefit be more than the amount of the ad­ curred with respect to such property shall in any income tax return; and justed basis without reference to this ar­ have been canceled or reduced; “(D) The phrase ‘indebtedness incur­ ticle) in an amount equal to such pro­ “(2) In the case of specific property red to purchase’ includes (i) indebted­ portion of such excess as the adjusted (other than inventory or notes or ac­ ness for money borrowed and applied in basis of inventory, notes receivable or counts receivable) against which, at the the purchase of property anil (ii) an accounts receivable, as the case may be, time of the cancelation or reduction of existing indebtedness secured by a lien bears to the sum of the adjusted bases of the indebtedness, there is a lien (other against the property which the debtor, such inventory and notes and accounts than a lien securing indebtedness in­ as purchaser of such property, has as­ receivable. curred to purchase such property) the sumed to pay. cost or other basis of such property shall “The basis of any of the debtor's “For the purposes of this article— be decreased (but the amount of the de­ property which shall have been trans­ “(A) Basis shall be determined as of crease shall not be more than the amount ferred to a person required to use the the date of confirmation of the plan, of the adjusted basis without reference debtor’s basis in whole or in part shall composition or arrangement under which to this article) by the amount by which be determined in accordance with the such indebtedness shall have been can­ the indebtedness secured by such lien provisions of this article.” shall have been canceled or reduced; celed or reduced; Articles 113 (b)-2 of Regulations-86 “(B) Except where the context other­ “(3) Any excess of the total amount and 94 are amended by striking out the wise requires, property means all of the by which the indebtedness shall have; first paragraph and inserting in lieu debtor’s property, other than money; been so canceled or reduced in such pro­ thereof the following: “(C) No adjustment shall be made by ceeding over the sum of the adjust­ virtue of the cancelation or reduction of ments made under (1) and (2) shall next “Art. 113 (b )-3 . Substituted basis.-— any accrued interest unpaid which shall be applied to reduce the cost or other Whenever it appears that the basis of not have resulted in a tax benefit in any basis of the property of the debtor property in the hands of the taxpayer income tax return; and (other than inventory and notes and is a substituted basis, as defined in sec­ “(D) The phrase ‘indebtedness incur­ accounts receivable, but including prop­ tion 113 (b) (2), the adjustments indi­ red to purchase’ includes (i) indebted­ erty covered by (1) and (2) > as fol­ cated in article 113 (b)-,l shall be made ness for money borrowed and applied in lows: The cost or other basis of each after first making in respect of such sub­ the purchase of property and (ii) an unit of property shall be decreased (but stituted basis proper adjustments of a existing indebtedness secured by a lien the.amount of the decrease shall not be similar nature in respect of the period against the property which the debtor, as more than the amount of the adjusted during which the property was held by purchaser of such property, has assumed basis without reference to this article) the transferor, donor, or grantor, or dur­ to pay. in an amount equal to such proportion ing which the other property was held of such excess as the adjusted basis by the person for whom the basis is to be “The basis of any of the debtor’s prop­ (without reference to this article) of determined. In addition, whenever it erty which shall have been transferred each such unit of property bears to the appears that the basis of property in the to a person required to use the debtor's sum of the adjusted bases (without ref­ hands of the taxpayer is a substituted basis in whole or in part shall be deter­ erence to this article) of all the prop­ basis, as defined in section 113 (b) (2) mined in accordance with the provisions erty of the debtor other than inventory (A), the adjustment indicated in article of this article.” and notes and accounts receivable; and 113 (b)-2 shall also be made, whenever Regulations 86 are amended by insert­ “(4) Any excess of the total amount necessary, after first making in respect ing after article 113 (b) —1 thereof the by which such indebtedness shall have of such substituted basis a proper adjust­ following new article: been so canceled or reduced over the ment of a similar nature in respect of the period during which the property “Art. 113 (b )-2 . Adjusted basis: Can­ sum of the adjustments made under (1), (2) and (3) shall next be applied to was held by the transferor, donor; or celation of indebtedness.—In addition to grantor. Similar rules shall also be ap­ the adjustments provided in section 113 reduce the cost or other basis of in­ plied in the case of a series of substituted ventory and notes and accounts receiv­ (b) (1) and article 113 (b)-l which are bases.” required to be made with respect to the able, as follows: The cost or other basis cost or other basis of property, a further of inventory or notes or accounts re­ [ seal] M ilton E. Carter, ceivable, as the case may be, shall be Acting Commissioner of Internal adjustment shall be made in any case Revenue. in which there shall have been a cancel­ decreased (but the amount of the de­ ation or reduction of indebtedness in any crease shall not be more than the Approved, November 9, 1938. proceeding under section 12, 74 (except amount of the adjusted basis without J oh n W. H anes, in the case of a ‘wage earner’ as defined reference to this article) in an amount Acting Secretary of the Treasury. in the Bankruptcy Act, ps amended), or equal to such proportion of such ex­ [F. R. Doc. 38-3402; Filed, November 12,1938; 77B of the Bankruptcy Act of 1898, as cess as the adjusted basis of inventory, 11:22 a. m.J FEDERAL REGISTER, Tuesday, November 15, 1938 2689

[T. D. 4873] with this section, be applicable in respect of (b) All provisions of law (including pen­ the tax imposed by this section * * *. alties) applicable in respect of the taxes im­ I n s p e c t i o n o f R e t u r n s posed by Title I of this Act, shall, insofar as Par. G. Section 503 (Title HI) of the not inconsistent with this section, be appli­ regulations g o v e r n in g t h e i n s p e c t io n o f Revenue Act of 1936 (relating to tax on cable in respect of the tax imposed by this section, * * •. r e t u r n s o f individuals , partnerships , unjust enrichment) provides in part: ESTATES, TRUSTS, CORPORATIONS, ASSOCIA­ (a) All provisions of law (including penal­ Par. O. Section 55 (Title I) of the TIONS, JOINT-STOCK COMPANIES, AND IN­ ties) applicable with respect to taxes im­ Revenue Act of 1932, as amended by sec­ SURANCE c o m p a n ie s ; a n d i n c o m e , p r o f ­ posed by Title I of this Act, shall, insofar as tion 218 (h), Title n , of the National In­ not inconsistent with this title, be applicable i t s , AND CAPITAL STOCK TAX RETURNS with respect to the taxes imposed by this dustrial Recovery Act, approved June 16, UNDER THE PRIOR REVENUE ACTS, OR UNDER title * * *. 1933, provides: ANY SUCH ACT AS AMENDED P ar. H. Section 105 (Title I) of the Returns made under this title shall be open to inspection in the same manner, to Collectors of Internal Revenue and Revenue Act of 1935 (relating to capital the same extent, and subject to the same stock tax) provides in part: provisions of law, including penalties, as others concerned: returns made under Title II of the Revenue (e) Returns required to be filed for the Act of 1926; and all returns made under this P a ra graph A. Section 55 (Title I) of purpose of the tax imposed by this section Act after the date of enactment of the Na­ the Revenue Act of 1938 provides in part; shall be open to inspection in the same man­ tional Industrial Recovery Act shall consti­ ner, to the same extent, and subject to the tute public records and shall be open to pub­ (a) Returns made under this title shall be same provisions of law, including penalties, lic examination and inspection to such extent open to inspection in the same manner, to the as returns made under Title n of the Reve­ as shall be authorized in rules and regula­ Bnrrift extent, and subject to the same provi­ nue Act of 1926. tions promulgated by the President. sions oi law, including penalties, as returns Par. I. Section 106 (Title I) of the made, under Title II of the Revenue Act of P ar. P. Section 215, Title H, of the 1926; and aU returns made under this Act Revenue Act of 1935 (relating to excess- National Industrial Recovery Act (relat­ shall constitute public records and shall be profits tax) provides in part: ing to capital stock tax) provides in open to public examination and inspection to such extent as shall be authorized in (c) All provisions of law (including pen­ part: rules and regulations promulgated by the alties) applicable in respect of the taxes Imposed by Title I of the Revenue Act of (e) Returns required to be filed for the President. ' 1934, as amended, shall, insofar as not in­ purpose of the tax imposed by this section shall be open to inspection in the same man­ P ar. B. Section 409 (Title IA) of the consistent with this section, be applicable in respect of the tax imposed by this sec­ ner, to the same extent, and subject to the Revenue Act of 1938 (relating to surtax tion, * * *. same provisions of law, including penalties, on personal holding companies) pro­ as returns made under title n of the Reve­ vides: , P ar. J. Section 905 (Title IX) of the nue Act of 1926. Social Security Act (relating to tax on All provisions of law (including penalties) P ar. Q. Section 216, Title H, of the applicable in respect of the taxes imposed employers of eight or more) provides in National Industrial Recovery Act (re­ by Title I, shall, insofar as not inconsistent part: lating to excess-profits tax) provides in with this title, be applicable in respect of (c) Returns filed under this title shall be part: the tax imposed by this title, except that open to inspection in the same manner, to the provisions of section 131 shall not be the same extent, and subject to the same (b) The tax imposed by this section shall applicable. provisions of law, including penalties, as be assessed, collected, and paid in the same manner, and shall be subject to the same P ar. C. Section 601 (Title HI) of the returns made under Title n of the Revenue Act of 1926. provisions of law (including penalties), as Revenue Act of 1938 (relating to capi­ the taxes imposed by title I of the Revenue tal stock tax) provides in part: Par. K. Section 55 (Title I) of the Act of 1932. (e) Returns required- to be filed for the Revenue Act of 1934, as amended by the P ar. R. Section 55, Title I, of the Rev­ purpose of the tax imposed by this section Act approved April 19, 1935 (Public, No. enue Act of 1932 provides: shall be open to inspection in the same 40, Seventy-fourth Congress, first ses­ manner, to the same extent, and subject to Returns made under this title shall be the same provisions of law, including pen­ sion), provides in part: open to inspection in the same manner, to alties, as returns made under Title II of (a) Returns made under this title shall be the same extent, and subject to the same the Revenue Act of 1926. open to inspection in the same manner, to provisions of law, including penalties, as re­ the same extent, and subject to the same turns made under Title n of the Revenue P ar. D. Section 602 (Title HI) of the provisions of law, including penalties, as Act of 1926. Revenue Act of 1938 (relating to excess- returns made under Title II of the Revenue profits tax) provides in part: Act of 1926; and all returns made under this P ar. S. Section 55, T itle I, of the Reve­ Act shall constitute public records and shaU nue Act of 1928 provides: (c) All provisions of law (including pen­ be open to public examination and inspec­ alties) applicable in respect of the taxes tion to such extent as shall be authorized in Returns made under this title shall be open imposed by Title I of this Act shall, insofar rules and regulations promulgated by the to inspection in the same manner, to the as not inconsistent with this section, be President. same extent, and subject to the same pro­ applicable in respect of the tax Imposed by visions of law, Including penalties, as returns this section, except that the provisions of Par. L. Section 351 (Title IA) of the made under Title II of the Revenue Act of section 131 of that title shall not be ap­ 1926. plicable. Revenue Act of 1934 (relating to surtax on personal holding companies) provides P ar. T. Section 257, Title H, of the Par. E. Section 55 (Title I) of the Rev­ in part: Revenue Act of 1926, provides in part: enue Act of 1936 provides in part: (c) Administrative provisions.—All provi­ (a) Returns upon which the tax has been (a) Returns made under this title shall sions of law (including penalties) applicable determined by the Commissioner shall con­ be open to inspection in the same manner, in respect of the taxes imposed by Title I of stitute public records; but, except as herein­ to the same extent, and subject to the same thin Act, shall. insofar as not inconsistent after provided in this section and section provisions of law, including penalties, as with this section, be applicable in respect 1203, they shall be open to inspection only returns made Tinder Title II of the Revende of the tax imposed by this section, * * *. upon order of the President and under rules Act of 1926; and all returns made under this and regulations prescribed by the Secretary Act shall constitute public records and shall Par. M. Section 701 (Title V) of the and approved by the President. be open to public examination and inspec­ Revenue Act of 1934 (relating to capital Pursuant to the above-quoted provi­ tion to such extent as' shall be authorized in stock tax) provides in part: rules and regulations promulgated by the sions of law, it is hereby ordered that the President. (e) Returns required to be filed for the returns of individuals, partnerships, es­ purpose of the tax imposed by this section tates, trusts, corporations, associations, Par. P. Section 351 (Title IA) of the shall be open to inspection in the same man­ Revenue Act of 1936 (relating to surtax ner, to the same extent, and subject to the joint-stock companies, and insurance on personal holding companies) provides same provisions of law, including penalties, companies, made pursuant to the require­ in part: as returns made under Title II of the Reve­ ments of the Revenue Act of 1938; the nue Act of 1926. Revenue Act of 1936; the Revenue Act of (c) Administrative Provisions.—All pro- P ar. N. Section 702 (Title V) of the 1935; Title IX of the Social Security Act; of law (including penalties) appli- t +1T1 resPect of the taxes imposed by Title Revenue Act of 1934 (relating to excess- the Revenue Act of 1934; sections 215 and or this Act, shall insofar as not inconsistent profits tax) provides in part: 216, Title H, National Industrial Recov- 2690 FEDERAL REGISTER, Tuesday, November 15, 1938

ery Act; the Revenue Act of 1932, as has a material interest which will be the Commissioner may prescribe for the amended by section 218, Title n of the affected by information contained in the inspection, by an officer or employee of National Industrial Recovery Act; Title I return; (d) as to returns under Title 3X any State having a law imposing an .in­ of the Revenue Act of 1932; Title I of the of the Social Security Act in the discre­ come tax upon either spouse or a tax Revenue Act of 1928; Title n of the Reve­ tion of the Commissioner and at such upon intangible property owned by nue Act of 1926; and income, profits, and time and in such manner as the Com­ either spouse, measured by the income capital stock tax returns under the prior missioner may prescribe for the inspec­ derived therefrom, upon written appli­ Revenue Acts, or under any such Act as tion, by an officer of any State having a cation signed by the governor erf such amended, shall be open to inspection in law certified to the Secretary of the State under the seal of the State, desig­ accordance and upon compliance with Treasury by the Social Security Board nating the person to make the inspection the following rules and regulations: as having been approved in accordance and showing that the inspection is solely with section 903 of the Social Security for such State income or intangible Part I Act, upon written application signed by property tax purposes. With respect to Income, Profits, and Capital Stock Tax the governor of such State under the seal inspection on behalf of States or politi­ Returns and Returns Under Title IX of of the State, designating the officer to cal subdivisions thereof of income re­ the Social Security Act make the inspection and showing that turns for taxable years beginning on such inspection is solely for purposes of Article 1. Return.—The word “re­ or after January 1, 1935, see articles 55 turn” when used in Part I of these regula­ administering such State law; and (e) (b) -l to 55 (b)-4, inclusive, of Regula­ tions shall include only income and prof­ as to returns for any taxable year begun tions 86, as substituted by Treasury De­ its tax returns; special excise tax returns prior to January 1,1935, in the discretion cision 4626 (C. B. X V -1, 61, 71), and of corporations made pursuant to section of the Commissioner of Internal Revenue, articles 55 (b)—1 to 55 (b)-4, inclusive, 1000 of Title X of each of the Revenue and at such time and in such manner as of Regulations 94, both as amended by Acts of 1918 and 1921 and section 700 of the Commissioner may prescribe for the Treasury D ecision 4732 (C. B. 1937-1, Title VII of the Revenue Act of 1924; cap­ inspection, by an officer or employee of 145); and section 55 of the Revenue Act ital stock tax returns made pursuant to any State having a law imposing an in­ of 1938. section 215 of Title n of the National In­ come tax upon the individual, or a tax Art. 7. Partnership return.—The re­ dustrial Recovery Act, section 701 of Title upon intangible property owned by the turn of a partnership shall be open to V of the Revenue Act of 1934, section 105 individual, measured by the income de­ inspection (a) by any individual who was of the Revenue Act of 1935, and section rived therefrom, upon written application a member of such partnership during any 601 of the Revenue Act of 1938; and re­ signed by the governor of such State un­ part of the time covered by the return, turns under Title IX of the Social Secu­ der the seal of the State, designating the or by his duly constituted attorney in rity Act. Any other word or term used in person to make the inspection and show­ fact, upon satisfactory evidence of such these regulations which is defined by the ing that the inspection is solely for such fact being furnished; (b) if a member of Revenue Acts, the National Industrial State income or intangible property tax such partnership during any part of the Recovery Act, or the Social Security Act, purposes. With respect to inspection on time covered by the return has died, or shall be given the respective definition behalf of States, or political subdivisions become legally incompetent by the ad­ contained in the Act under which the thereof, of income returns for taxable ministrator, executor, trustee, or guard­ particular return is made. years beginning on or after January 1, ian, of his estate, or by the duly consti­ 1935, see articles 55 (b)-l to 55 (b)-4, j Art. 2. Corporation.—The word “cor- tuted attorney in fact of such adminis­ - poration” when used in these regulations inclusive, of Regulations 86, as substi­ trator, executor, trustee, or guardian; includes associations, joint-stock com­ tuted by Treasury Decision 4626 (C. B. I (c) in the discretion of the Commis­ panies, and insurance companies. XV-1, 61, 71) , and articles 55 (b)-l to sioner of Internal Revenue, by any heir 55 (b)-4, inclusive, of Regulations 94, Art. 3. Partnership.—The word “part­ at law, next of kin, 6r beneficiary under nership” when Used in these regulations both as amended by Treasury Decision the will, of such deceased person, or by includes a syndicate, group, pool, joint 47321 (C. B. 1937-1,145); and section 55 the duly constituted attorney in fact of venture, or other unincorporated organi­ of the Revenue Act of 1938. such heir at law, next of kin, or benefi­ zation, through or by means of which any Art. 6. Joint return of husband and ciary, upon a showing that such heir at business, financial operation, or venture wife.—A joint return of a husband and law, next of kin, or beneficiary has a ma­ is carried on, and which is not, within wife shall be open to inspection (a) by terial interest which will be affected by the meaning of the income tax laws, a either spouse for whom the return was information contained in the return; (dt) trust or estate or a corporation. made, upon satisfactory evidence of such as to returns under Title IX of the Social Art. 4. Stock.—The word “stock” in­ relationship being furnished, or by his Security Act in the discretion of the Com­ cludes the shares in an association, joint- or her duly constituted attorney in fact; missioner and at such time and in such stock company, or. insurance company; (b) if either spouse has died, or become manner as the Commissioner may pre­ and the word “shareholder” includes a legally incompetent, by the administra­ scribe for the inspection, by an officer member in an association, joint-stock tor, executor, trustee, or guardian of his of any State having a law certified to the company or insurance company. or her estate, or by the duly constituted Secretary of the Treasury by the So­ cial Security Board as having been ap­ Art. 5. Return of individual.—The re­ attorney in fact of such administrator, turn of an individual shall be open to executor, trustee, or guardian; (c) in proved in accordance with section 903 of inspection (a) by the person who made the discretion of the Commissioner of the Social Security Act, upon written ap­ the return, or by his duly constituted at­ Internal Revenue by any heir at law, plication signed by the governor of such torney in fact; (b) if the maker of the next of kin, or beneficiary under the State under the seal of the State, des­ return has died, or become legally in­ will, of such deceased spouse, or by the ignating the officer to make the inspec­ competent, by the administrator, execu­ duly constituted attorney in fact of tion and showing that such inspection tor, trustee, or guardian of his estate, or such heir at law, next of kin, or bene­ is solely for purposes of administering by the duly constituted attorney in fact ficiary, upon a showing that such heir such State law; and (e) as to returns of such administrator, executor, trustee, at law, next of kin, or beneficiary has a for any taxable year begun prior to Jan­ material interest which will be affected uary 1, 1935, in the discretion, of the or guardian; (c) in the discretion of the Commissioner of Internal Revenue, and Commissioner of Internal Revenue, by by information contained in the return; any heir at law, next of kin, or beneficiary and (d) for any taxable year begun prior at such time and in such manner as the under the will, of such deceased person, to January 1, 1935, in the discretion of Commissioner may prescribe for the in­ or by the duly constituted attorney in the Commissioner of Internal Revenue, spection, by an officer or employee of fact of such heir at law, next of kin, or and at such time and in such manner as any State having a law imposing an in­ beneficiary, upon a showing that such come tax upon the partnership or upon heir at law, next of kin, or beneficiary, 12P.B.646 (763DI). any member thereof in respect of in- FEDERAL REGISTER, Tuesday, November 15, 1938 2691 come therefrom or a tax upon intangible son to make the inspection and show­ spection is solely for such State income property owned by the partnership, ing that the inspection is solely for, such or intangible property tax purposes. measured by the income derived there­ State income or intangible property tax With respect to inspection on behalf of from, upon written application signed by purposes. With respect to inspection on States or political subdivisions thereof of the governor of such State under the behalf of States or political subdivisions income returns for taxable years begin­ seal of the State, designating the per­ thereof of income returns for taxable ning on or after January 1, 1935, see son to make the inspection and showing years beginning on or after January 1, articles 55 (b)-l to 55 (b)-4, inclusive, that the inspection is solely for such 1935, see articles 55 (b)-l to 55 (b)-4, of Regulations 86, as substituted by State income or intangible property tax inclusive, of Regulations 86, as substituted Treasury Decision 4626 (C. B. XV-1, 61, purposes* With respect to inspection on by Treasury Decision 4626 (C. B. X V-1,61, 71), and articles 55 (b)-l to 55 (b)-4, behalf of States or political subdivisions 71), and articles 55 (b)-l to 55 (b)-4, inclusive,, of Regulations 94, both as thereof of income returns for taxable inclusive, of Regulations 94, both as amended by Treasury Decision 4732 years beginning on or after January 1, amended by Treasury Decision 4732 (C. (C. B. 1937-1, 145); and section 55 of 1935, see articles 55 (b)-l to 55 (b)-4, B. 1937-1, 145); and section 55 of the the Revenue Act of 1938. inclusive, of Regulations 86, as substi­ Revenue Act of 1938. Art. 10. Corporations.—The return of tuted by Treasury Decision 4626 (C. B. Art. 9. Trusts.—The return of a trust a corporation shall be open to inspection XV-1, 61, 71), and articles 55 (b)-l to shall be open to inspection (o) by the (a) by any person designated by action 55 (b)-4, inclusive, of Regulations 94,* trustee or trustees, jointly or severally, of its board of directors, or other similar both as amended by Treasury Decision or the duly constituted attorney in fact governing body, upon submission of sat­ 4732 (C. B. 1937-1, 145); and section 55 of such trustee or trustees; (b) by any isfactory evidence of such action, or (b) of the Revenue Act of 1938. individual who was a beneficiary of by any officer or employee of such cor­ Art. 8. Estates.—The return of an such trust dining any part of the time poration upon written request to the estate shall be open to inspection (a) by covered by the return, or by his duly Commissioner of Internal Revenue the administrator, executor, or trustee constituted attorney in fact, upon satis­ signed by any principal officer and at­ of such estate, or by his duly constituted factory evidence of such fact being fur­ tested by the secretary, or other officer attorney in fact; (b) in the discretion nished; (c) if any individual who was a under the corporate seal, if any, or (c) of the Commissioner of Internal Reve­ beneficiary of such trust during any part by the duly constituted attorney in fact nue, by any heir at law, next of kin, or of the time covered by the return has of such corporation. The return of a beneficiary under the will, of the de­ died, or become legally incompetent, by corporation which has since been dis­ ceased person for whose estate the re­ the administrator, executor, trustee, or solved, shall, in the discretion of the turn is made, or by the duly constituted guardian, of his estate, or by the duly Commissioner of Internal Revenue, be attorney in fact of such heir at law, constituted attorney in fact of such ad­ open to inspection by any person who next of kin, or beneficiary, or if any ministrator, executor, trustee, or guard­ under these regulations might have in­ such heir at law, next of kin or bene­ ian; (

close the returned value of any item or Art. 3. Inspection by branch of Gov­ such collector or revenue agent in charge the amount of any specific deduction, ernment other than Treasury Depart­ upon written application to him, is au­ or other limited information, if such dis­ ment.—Except as provided in article 4, thorized to permit the inspection of such closure is necessary in order to verify the if the head of an executive department return by a United States attorney, or same or to arrive at a correct determina­ (other than the Treasury Department), an attorney in the Department of Jus­ tion of the tax. This right of disclosure, or of any other establishment of the tice, or by the taxpayer or his duly au­ however, is limited to the purposes of the United States Government, desires to thorized attorney in fact, in accordance investigation, and in no case extends to inspect or to have some other officer or with these regulations. such information as the amount of the employee of his branch of the service Art. 8. Penalties.—Section 3167, Re­ estate, the amount of tax, or other gen­ inspect a return in connection with some vised Statutes, as amended by the Reve­ eral data. matter officially before him, the inspec­ nue Act of 1918, and reenacted without Art. 3. A return or notice may be ex­ tion may, in the discretion of the Secre­ change by section 1115 of the Revenue hibited, or information contained therein tary of the Treasury, be permitted upon , Act of 1926, makes it a misdemeanor, may be disclosed, to an officer of any written application to him by the head punishable by fine not exceeding $1,000, State, for official use in connection with of such executive department or other or by imprisonment not exceeding one an estate, inheritance, legacy, succession, Government establishment. The appli­ year, or both, at the discretion of the gift, or other tax of the State, provided cation shall be signed by such head and court, for any person to print or pub­ a like cooperation is given by the State shall show in detail why the inspection lish in any manner whatever not pro­ to the Commissioner of Internal Revenue is desired, the name and address of the vided by law information contained in or his representatives for use in the ad­ taxpayer who made the return, and the any income return, and further provides ministration of the Federal tax laws. name and official designation of the per­ that if the offender be an officer or em­ Such officer may also be permitted to in­ son it is desired shall inspect the return. ployee of the United States he shall be spect schedules, lists, and other state­ The information obtained under this dism issed from office or discharged from ments designed to be supplemental to or article and article 2 may be used as evi­ employment. The penalties provided in to became a part of, the original return, dence in any proceeding, conducted by section 3167, Revised Statutes, are ap­ and other records and reports which con­ or before any department or establish­ plicable also to disclosure of information tain information included or required by ment of the United States, or to which contained in excess-profits and capital statute to be included in the return. the United States is a party. stock tax returns and returns made un­ Art. 4. If any other person has a ma­ Art. 4. Inspection by Government at­ der Title IX of the Social Security Act. terial interest in ascertaining any fact torneys.—Any return shall be open to Art. 9. Former regulations revoked.— disclosed by the return, or in obtaining Inspection by a United States attorney Former regulations issued with the ap­ information as to the payment of the or by an attorney of the Department of proval of the President in respect of in­ tax, he may make a written application Justice where necessary in the perform­ spection of returns, except regulations to the Commissioner of Internal Revenue ance of his official duties. The request relating to the inspection of returns by for such information, setting forth thei for inspection shall be in writing and, committees of Congress, regulations re­ nature of his interest and the purpose of except as provided in article 7, shall be lating to overassessments contained in the application. Thereupon, the Com­ addressed to the Commissioner, and shall Treasury Decision 4583. (C. B. XTV-2, missioner may permit an inspection of, state the purpose for which inspection is 318) and regulations governing the in­ or furnish a copy of the return, or may desired. It may be signed by the At­ spection of income tax returns, Form furnish such information as he deems torney General, the Assistant to the At­ 1042B, by the Department of National advisable. torney General, an Assistant Attorney Revenue, Ottawa, Canada (T. D. 4765, Part III General, or a United States attorney. C. B. 1937-2, 121), are hereby revoked1 Art. 5. Information returns.—Infor­ to the extent that they are inconsistent General Provisions mation returns, schedules, lists, and other with this Treasury Decision. statements designed to be supplemental The following provisions, unless other­ H. M orgenthatt, Jr., to, or to become a part of, the returns Secretary of the Treasury. wise stated, are applicable to all returns shall be subject to the same rules and referred to in Parts I and n of these regulations as to inspection as are the Approved: regulations. returns themselves. In any case where F ranklin D R oosevelt Article 1. Permission to inspect.—The inspection of the return is authorized by The White House, Commissioner of Internal Revenue, upon these regulations, the Commissioner may, Nov. 12, 1938. written application setting forth fully in his discretion, permit inspection of [P. R. Doc. 38-3421; Filed, November 14,1938; the reason for the request, may grant other records and reports which contain 12:31p.m.] permission for the inspection of returns information included or required by stat­ in accordance with these regulations. ute to be included in the return. [T. D. 4872] Art. 2. Treasury Department officials Art. 6. Place of inspection.—Generally, and employees.—The officers and em­ returns may be inspected only in the R egulations G overning the I nspection ployees of the Treasury Department Bureau of Internal Revenue, Washington, op I ncome and E xcess-P rofits Tax whose official duties require inspection of D. C., unless such returns are in the cus­ R eturns b y the S pecial J oint Con­ returns may inspect any such returns tody of a collector of internal revenue or gressional Committee to M ake an In­ without making such written applica­ internal revenue agent in charge, in vestigation op the T ennessee Valley tion. If the head of a bureau or office which event the returns may be inspected A uthority in the Treasury Department, not a part in the office of such collector or agent in Collectors of Internal Revenue and of the Internal Revenue Bureau, desires charge, but only in the presence of an Others Concerned: to inspect, or to have an employee in internal revenue officer, designated by the Pursuant to the provisions of section his bureau or office inspect a return, collector or agent for that purpose. 257 (a) of the Revenue Act of 1926; sec­ in connection with some matter officially Art. 7. Applications for inspection.— tion 55 of the Revenue Act of 1928; sec­ before him, for reasons other than tax Except as provided in article 3, and as tion 55 of the Revenue Act of 1932, as administration purposes, the inspection hereinafter provided, all applications for amended by section 218 (h) of the Na­ may, in the discretion of the Secretary, permission to inspect returns must be tional Industrial Recovery Act; section be permitted upon written application made in writing to the Commissioner of 216 (b) of the National Industrial Re­ to him by the head of such bureau or Internal Revenue. When a return is in covery Act; sections 55 (a) and 702 (b) office, showing in detail why the inspec­ the custody of a collector of internal rev­ tion is desired. enue or internal revenue agent in charge, 12F.R. 2088 (2455 DI). FEDERAL REGISTER, Tuesday, November 15, 1938 2693 of the Revenue Act of 1934; section 106 1, entitled “Certificates of Age” issued T 14 S R 13 E sec.’27', NW14SW14 and Sy,SWy4, (c) of the Revenue Act of 1935; and October 14, 1938 *) I do hereby designate secs. 28, 29 and 30, sy>, section 55 (a) of the Revenue Act of the following States as States in which sec. 31, N ^ N y2; 1936, income and excess-profits tax re­ State age, employment, or working cer­ aggregating 19,729.22 acres. turns made under the Revenue Acts of tificates or permits shall have the same H arry S lattery, 1926, 1928, 1932, the National Industrial force and effect as Federal certificates of Under Secretary of the Interior. Recovery Act, the Revenue Acts of 1934, age under the Fair Labor Standards Act of 1938; [F. R. Doc. 38-3410; Filed, November 14, 1938; 1935,, and 1936,1 or under any of such 9:49 a. m.] Acts as amended, for the calendar year Minnesota, Nebraska, and South 1925 and all subsequent taxable years to Dakota. and including the calendar year 1937, shall be open to inspection by the Spe­ This designation shall be effective from BUREAU OF RECLAMATION cial Joint Congressional Committee to and after the date hereof until the ex­ make an investigation of the Tennessee piration of the period of six months from F irst F orm R eclamation W ithdrawal Valley Authority, or any duly authorized and after October 24, 1938. Owyhee P roject, Idaho-O regon subcommittee thereof, for the purpose of [seal] K atharine F . Lenroot, T he S ecretary of the Interior. carrying out the provisions of Public Chief. (Through the Division of Grazing) Resolution 83 (Seventy-fifth Congress) [F. R. Doc. 38-3407; Filed, November 12,1938; October 7, 1938. approved April 4, 1938 (52 Stat. 154). 1:00 p.m .] The inspection of returns herein author­ Sir : In accordance with the authority ized may be by the committee or a duly vested in you by the Act of June 26,1936 (49 Stat. 1976) it is recommended that authorized subcommittee thereof, acting TITLE 43—PUBLIC LANDS directly as a committee or a subcom­ Departmental Order of April 8, 1935 es­ mittee, or by or through such examiners GENERAL LAND OFFICE tablishing Grazing District No. 1, Idaho, under and pursuant to the provisions of or agents as the committee or subcom­ S tock D riveway Withdrawal No. 77, the Act of June 28, 1934 (48 Stat. 1269) mittee may designate or appoint. Upon Arizona N o. 3, R evoked written notice by the chairman of the be revoked in so far as the following ‘ November 3, 1938. committee or of the authorized subcom­ described lands are affected and said mittee to the Secretary of the Treasury, Departmental order of March 29, 1919, lands be withdrawn from public entry giving the names and addresses of the which withdrew the following-described under the first form withdrawal, as pro­ taxpayers whose returns it is necessary land as Stock Driveway No. 77, Arizona vided in Section 3, Act of June 17, 1902 to inspect and the taxahle periods cov­ No. 3, under section 10 of the act of (32 Stat. 388). 29, 1916, 39 862, ered by the returns, the Secretary and December Stat. as Owyhee Project, Idaho-O eegon any officer or employee of the Treasury amended by the act of January 29, 1929, 45 Stat. 1144, is hereby revoked: Boise Project, I daho r Department shall furnish such commit­ T. 2 N., R. 4 W., tee or subcommittee with any data re­ Gila and Salt R iver Meridian Sec. 19, N%SEi4; lating to or contained in or accompany­ T. 16 S., R. 9 E„ Sec. 20, NE14NW14 and NW^SW^ ing or supporting any such return, or sec. 1, all, Respectfully, shall make such return available for in­ sec. 12, N%; T. 15 S., R. 10 E., J o h n C. P age, spection by the committee or subcom­ sec. 25, NE% and S%, Commissioner. mittee or by such examiners or agents sec. 26, Ey2SE%, as the committee or subcommittee may sec. 34, sy2sy2, I concur, October 15, 1938. designate or appoint, in the office of the sec. 35, NE%SW%, SV2SW14 and SE*4; Julian T errett, T. 16 S., R. 10 E., Commissioner of Internal Revenue. Any sec. 1, N% and SW%, Acting Director, Division of information thus obtained by the com­ secs. 3 and 4, Grazing. mittee or the subcommittee thereof, ■ sec. 5, N%, October 28, 1938. sec. 6, NVj , which is relevant or pertinent to the sec. 8, NE% and S%, The foregoing recommendation is purpose of the investigation, may be sub­ sec. 9, N% and SW%, hereby approved and the Commissioner mitted by the committee or the subcom­ sec. 10, N$2, of the General Land Office will cause the mittee to the Senate or the House of sec. 11, N%, sec. 12, NWy4, records of his office and the local land Representatives. sec. 17, all, office to be noted accordingly. H. M orgenthau, Jr., sec. 18, Ey2Ey2, sec. 19, NE% and S%, H arry S lattery, Secretary of the Treasury. sec. 20, NWi/4, Under Secretary of the Interior. Approved: secs. 30 and 31; T. 17 S., R. 10 E., [F. R. Doc. 38-3411; Filed, November 14,1938; F ranklin D R oosevelt, sec. 6, Ny2 and SW%; 9:49 a. m.] The White House, T. 15 S., R. 11 E., Nov. 14, 1938. sec. 12, NE% and S%, secs. 13, 14 and 15, [F. R. Doc. 38-3420; Filed, November 14,1938; sec. 19, SE%, Notices 12:31 p.m.] secs. 20, 21 and 22, sec. 29, NWy4, sec. 30, aU, DEPARTMENT OF LABOR. TITLE 29—LABOR sec. 31, W%; T. 16 S., R. 11 E., Division of Public Contracts. CHILDREN’S BUREAU sec. 6, NW‘A; - T. 14 S., R. 12 E., I n the M atter of the D etermination of [Regulation No. 7] secs. 25, 26 and 34, S%, the P revailing M in im u m W ages in the Child Labor sec. 35, all; T. 15 S., R. 12 E„ P hotographic S u pplies I ndustry p a r t 4 0 2 . ACCEPTANCE OF STATE sec. 3, N ‘A, notice of hearing CERTIFICATES sec. 4, all, sec. 5, S y2, N ovember 12, 1938. sec. 7, all, The Public Contracts Board will hold sec. 8, N% and SW&, S ec. a hearing in Room 3229, Department of 402.4 Designation of States.—Pur­ sec. 9, NWy4 ; suant to the provisions of section 401.5 Labor Building, Washington, D. C., at 10 a. m., on Tuesday, November 29, 1938, to (section 5 of Child Labor Regulation No, 1 Issued pursuant to 4he authority con­ ferred by sections 3 (1) and 11 (b) of the take testimony upon which findings of 45 sta t- 791: 47 Stat. 169; 4 Fair Labor Standards Act of 1938 (52 Stat. fact will be made to assist the Secre­ Stat. 195, 680; 49 Stat. 1014, 1652. 1060) ; 3 F. R. 2487 DI. tary of Labor in determining, pursuant to 1 . 2694 FEDERAL REGISTER, Tuesday, November 15, 1938

Section 1 (b) of the Public Contracts Act Inc., pursuant to Part 523 (Regulations BY AIR OF MAIL, PASSENGERS AND PROP­ (49 Stat. 2036; 41 U. S. C. Sup. HI 35) the applicable to employment of messengers ERTY BETWEEN BOSTON, MASSACHUSETTS, prevailing minimum wages in the Photo­ pursuant to Section 14 of the Pair Labor AND CARIBOU, MAINE, WITH SCHEDULED graphic Supplies Industry. Hie Photo­ Standards Act of 1938)1 made applica­ INTERMEDIATE STOPS AT PORTLAND, AÜ- graphic Supplies Industry shall be under­ tion for permission to employ messengers BURN-LEWISTON, AUGUSTA , WATERVILLE stood to be that industry engaged in the employed exclusively in delivering let­ BANGOR, MILLINOCKET, HOULTON AND manufacture of cameras, including mo­ ters and messages at wages lower than PRESQUE ISLE, MAINE; AND BETWEEN tion-picture cameras (except 35 milli­ the applicable minimum wage specified BOSTON AND MONTREAL, CANADA,' WITH meter) ; photostat machines and blue­ in Section 6 of the Act; and SCHEDULED INTERMEDIATE STOPS AT MAN­ printing machines; tripods, film rewind­ Whereas, a hearing on said applica­ CHESTER AND CONCORD, NEW HAMPSHIRE ers and reels, shutters, and other photo­ tion 2 was held before William M. Leiser- AND BARRE-MONTPELIER AND BURLINGTON graphic accessories; such equipment as son, the representative of the Adminis­ VERMONT flashlight apparatus, plate holders, de­ trator of the Wage and Hour Division, veloping tanks; supplies such as films, duly authorized to hear and determine N ovember 12, 1938. . plates, developers; projection machines whether it is necessary in order to pre­ The above-entitled proceeding is as­ (except 35 millimeter) of all types, both vent curtailment of opportunities for signed for public hearing on November home and commercial, including sound employment to provide for the employ­ 23, 1938, 10 o’clock a. m. (eastern stand­ equipment. ment of such messengers at such lower ard tim e), at the offices of the Civil At the hearing an opportunity to be wages, and, if such necessity were found Aeronautics Authority (Hearing room heard, either in person or by duly ap­ to exist, to determine at what wages No. 1851), Washington, D. C., before pointed representatives, will be given to lower than the minimum wage applica­ Examiner R. F. Walter. persons engaged in the above-named in­ ble under Section 6 of the Act such By the Authority. dustry, either as employers or as em­ employment shall be permitted and with ployees, to groups of such persons, and to what limitations as to time, number, [seal] P aul J. F rizzell, others within the discretion of the Board. proportion and length of service; and Secretary. Briefs or telegraphic communications Whereas, following such hearing, the [F. R. Doc. 38-3415; Filed, November 14,1938; may be filed but they should be received said William M. LeiSerson duly made 10:19 a. m.] by the Board on or before the hearing his report and found and determined date. Five copies of all briefs must be as follows submitted. Employers appearing in per­ “(a) That it is not necessary, in [Docket No. 31-401 (E)-1J son, or by representatives, or presenting order to prevent curtailment of oppor­ W estern Air E xpress Corporation briefs, should furnish the Board with the tunities for employment, to provide for following essential data; the employment of messengers, employed APPLICATION UNDER SECTION 401 (E) FOR A (1) Name of firm. exclusively in delivering letters and mes­ PERMANENT CERTIFICATE OF PUBLIC CON­ (2) Plant address. sages, under special certificates at wages j VENIENCE AND NECESSITY COVERING THE (3) Total number of employees in lower than the minimum wage applica­ TRANSPORTATION BY AIR OF MAIL, PAS­ plant. ble under Section 6; and SENGERS, EXPRESS AND PROPERTY IN (4) Number of male employees. (b) That the Administrator is not SCHEDULED AND NON-SCHEDULED OPERA­ (5) Number of female employees. authorized by Section 14 of the Act to TION BETWEEN SAN DIEGO, CALIFORNIA (6) Classification of employees by oc­ issue such certificates for the messengers AND SALT LAKE CITY, UTAH VIA LOS AN­ cupations, including number engaged in employed by the applicant companies.” GELES (BURBANK), CALIFORNIA, AND LAS vegas, Nevada; and betw een salt lake each operation. and therefore, determined that the said (7) Hourly wages in each operation CITY AND GREAT FALLS, MONTANA, VIA applications be denied; and POCATELLO AND IDAHO FALLS, IDAHO, AND with designation of applicable timé pe­ Whereas, said Report and Findings riod. WEST YELLOWSTONE, BUTTE, AND HELENA, was duly filed with the Administrator MONTANA (8) If paid on piece work basis, weekly on November 12, 1938 and is now on file earnings in each class of employees. in his office, Room 5144, Department of November 12, 1938. (9) Hours worked per week. Labor Building, Washington, D. p., and The above-entitled proceeding is as­ This outline of suggested data is not available for examination by all in­ signed for public hearing on November meant to exclude the submission of any terested parties; 21, 1938, 10 o’clock a. m. (eastern stand­ other pertinent information which an Now, Therefore, pursuant to the pro­ ard time), at the offices of the Civil employer may desire to submit. visions of Section 523.9 of the aforesaid Aeronautics Authority (Hearing room No. Employees appearing at the hearing, Regulations, notice is hereby given that 1851), Washington, D. C., before Exam­ either in person or by their representa­ any person aggrieved by the said deter­ iner G. A. Keyser. tives, or submitting briefs, should ac­ mination may, within fifteen days after By the Authority. quaint the Board with facts as to the the date this notice appears in the F ed­ [seal] P aul J. F rizzell, wages now being paid in the industry. eral R egister, file a petition with the Ad­ Secretary. Dated this 10th day of November, 1938. ministrator requesting that he review the determination of the said representative. [F. R. Doc. 38-3413; Filed, November 14,1938; [seal] L. M etcalfe W alling, » 10:19 a.m.] Administrator. E lmer F. Andrew s, Administrator. [F. R. Doc. 38-3412; Filed, November 14,1938; [Docket No. 57-401 (E)-l] 10:17 a. m.] [F. R. Doc. 38-3416; Filed, November, 14,1938; 10:48 a. m.] Airline F eeder S ystem , Inc. Wage and Hour Division. APPLICATION UNDER SECTION 401 (E) FOR A CIVIL AERONAUTICS AUTHORITY. CERTIFICATE OF PUBLIC CONVENIENCE AND N otice of O pportunity to P etition for [Docket No. 13-401 (E )-l] NECESSITY FOR THE TRANSPORTATION BY R eview of D etermination D enying AIR OF PASSENGERS AND PROPERTY BE­ Applications for P erm ission to Em ­ B oston-M aine Airw ays, I nc. TWEEN NEWARK, NEW JERSEY, AND WEST- ploy M essengers at W ages Lower APPLICATION FOR CERTIFICATE OF PUBLIC FIELD, MASSACHUSETTS, VIA BRIDGEPORT, T han Applicable M in im u m S pecified CONVENIENCE AND NECESSITY UNDER SEC­ NEW HAVEN, AND HARTFORD, CONNECTICUT TION 401 (E) FOR THE TRANSPORTATION Whereas, the Western Union Tele­ N ovember 12, 1938. graph Company, Postal Telegraph Land- 13 F. R. 2484 DI. The above-entitled proceeding is as­ line System and All America Cables, a 3 F. R. 2489 DI. signed for public hearing on November FEDERAL REGISTER, Tuesday, November 15, 1938 2695

26,1938, 10 o’clock a. m. (eastern stand­ Rural Electrification Act of 1936, as amended, I hereby allocate,' from the ard time), at the offices of the Civil amended, I hereby allocate, from the sums authorized by- said Act, funds for Aeronautics Authority (Hearing room sums authorized by said Act, funds for loans for the projects and in the amounts No. 1851), Washington, D. C., before Ex­ loans for the projects and in the as set forth in the following schedule: aminer R. J. Bartoo. amounts as set forth in the following Project Designation A m ount By the Authority. schedule: Georgia R9067C1 Bacon______$178, 000 Georgia R9090B1 Candler______152,000 [seal] P aul J. F rizzell, Project Designation Amount Indiana R9101A1 Hamilton______430, 000 Secretary. Georgia R9022W2 Colquitt______$20,000 Illinois R9028B1 Champaign__ ___j. 477,000 Michigan R9029W1 Ontonagon______15,000Kansas R9014A1 Sumner-Cowley__ 231, 000 [P. R. Doc. 38-3414; Piled, November 14,1938; Minnesota R9039W1 Chippewa------25,000Mississippi R9045A1 Clarke-Lauder- 10:19 a. m.] dale______368,000 J ohn M. Carmody, Missouri R9019D1 Boone_____ :___ 135, 000 Administrator. Missouri R9020B1 Marion______61,000 Montana R9001B2 Ravalli______15,000 [P. R. Doc. 38-3408; Filed, November 14,1938; Ohio R9060A3 Seneca______20,000 r u r a l electrification a d m in is ­ 9:45 a. m.] Oklahoma R9015B2 Tillman______33, 000 Texas R9040C1 Bowie______38,000 t r a t io n . Texes R9045B1 Limestone______188,000 [ Administrative Order No. 309 ] [Administrative Order No. 308] Texas R9054B1 Wood______195, 000 Allocation of F unds for Loans Texas R9065B1 Rusk______125,000 Allocation of F u nds, for Loans Virginia R9002B2 Craig______30,000 N ovember 9, 1938. J oh n M . Carmody, N ovember 9, 1938. By virtue of the authority vested in me Administrator. By virtue of the authority vested in by the provisions of Section 4 of the [P. R. Doc. 38-3409; Piled, November 14, 1938; me by the provisions of Section 5 of the Rural Electrification Act of 1936, as 9:45 a. m.] No. 222------3