> 11TTTO& ' FEDERAL REGISTER

VOLUME 3 \ 1934 NUMBER 141 i/AHTED^

W a sh in gton , T h u rsd a y, J u ly 21, 1938

Rules, Regulations, Orders his hand and caused the seal of the De­ CONTENTS partment of Agriculture to be affixed in the city of Washington, District of Co­ RULES, REGULATIONS, ORDERS TITLE 7—AGRICULTURE lumbia, this 19th day of July, 1938. T itle 7—A griculture: [ seal! M. L. W ilson, Agricultural Adjustment Ad­ AGRICULTURAL ADJUSTMENT Acting Secretary of Agriculture. ADMINISTRATION ministration: Page [F. R. Doc. 38-2079; Filed, July 20,1938; Fresh prunes grown in Uma­ P roclamation W ith Respect to B ase 9:32 a. m.] tilla County, Oreg., Walla P eriod to be U sed for P urpose of Walla and Columbia M arketing A greement and O rder Counties, Wash.: R egulating H andling of F resh P runes Base period for marketing G rown in U matilla County in State Order R egulating the H andling in In ­ agreement and order__1779 of Oregon, and W alla W alla and terstate and Foreign Commerce, and Order regulating handling Columbia Counties in State of W ash­ Such H andling as D irectly Burdens, in interstate, etc., com­ ington Obstructs or Affects I nterstate or F oreign Commerce of Fresh P runes merce______1779 By virtue of the authority vested in G rown in U matilla County in State Mainland cane sugar area the Secretary of Agriculture by the terms of Oregon and W alla W alla and Co­ ferais, determination of and provisions of Public Act No. 10, 73rd lumbia Counties in S tate of W ash­ normal yield of commer- . Congress, as amended, and as reenacted ington daily recoverable sugar and amended by the Agricultural Mar­ per acre, etc______1786 keting Agreement Act of 1937, as Whereas, it is provided in Public Act Sugarcane production, Puerto amended, the Secretary of Agriculture No. 10, 73rd Congress, as amended, and Rico, farming practices, hereby finds and proclaims that, in con­ as reenacted and amended by the Agri­ crop year 1938-39______1786 nection with the execution of a market­ cultural Marketing Agreement Act of Bureau of Agricultural Eco­ ing agreement and the issuance of an 1937, approved June 3, 1937, as amend­ nomics: order regulating the handling of fresh ed (hereinafter called the act), as Land utilization program, follows; prunes grown in Umatilla County in the delegation of authority_1786 State of Oregon, and Walla Walla and Sec. 8c. (1) Hie Secretary of Agriculture T itle 24— H ousing Credit: Columbia Counties in the State of Wash­ shall, subject to the provisions of this sec­ ington, the purchasing power of such tion, issue, and from time to time amend, Home Owners’ Loan Corpora­ orders applicable to processors, associations tion: fresh prunes during the base period of producers, and others engaged in the August 1909-July 1914 cannot be satis­ handling of any agricultural commodity or Authority of contract brokers factorily determined from available product thereof specified in subsection (2) to incur charges and to of this section. Such persons are referred statistics of the Department of Agricul­ to in this title as “handlers.” Such orders make payment______1788 ture, but that the purchasing power of shall regulate, in the manner hereinafter Bond of indemnity for lost such fresh prunes can be satisfactorily in this section provided, only such handling checks______1787 determined from available statistics of of such agricultural commodity, or product thereof, as is in the current of interstate Consolidated Manual, Section the Department of Agriculture for the or foreign commerce, or which directly bur­ 703 revoked______1788 post-war period August 1919-July 1929; dens, obstructs, or affects, interstate or for­ T itle 26—I nternal R evenue: and the period August 1919-July 1929 eign commerce in such commodity or prod­ is hereby found and proclaimed to be uct thereof. Bureau of Internal Revenue: Estate tax regulations the base period to be used in connection Whereas, the Secretary of Agriculture, amended______1792 with ascertaining the purchasing power having reason to believe that the issuance Gift t a x regulations of fresh prunes grown in Umatilla of an order would tend to establish and amended______1788 County in the State of Oregon, and maintain such marketing conditions for Walla Walla and Columbia Counties in fresh prunes grown in Umatilla County T itle 31— M oney and F inance: the State of Washington, for the purpose in the State of Oregon, and Walla Walla T r e a s u r y : of the execution of a marketing agree­ and Columbia Counties in the State of Office of the Secretary: ment and the issuance of an order regu­ Washington, as would establish prices to Newly-mined domestic silver. 1794 lating the handling of fresh prunes in growers at a level that will give such T itle 43— P ublic L ands: that area. fresh prunes a purchasing power with Division of Grazing: In witness whereof, the Secretary of respect to articles that farmers buy Arizona, establishment of Agriculture has executed this proclama­ equivalent to the purchasing power of Grazing District No. 3___ 1795 tion in duplicate and has hereunto set such fresh prunes in the base period, did, (Continued on next page) 1779 1780 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938

CONTENTS—Continued unstable marketing conditions for said fresh prunes and consequently depressed Securities and Exchange Com­ prices to growers; FEDERÄLÄREGISTEB mission: (4) That the regulation of shipments of fresh prunes l5y grades and by other <*(ITEO’ Hearings: Pa®e Continental Securities Corp., methods prescribed by this order will 15-year 5% debentures, tend to prevent fluctuations of prices to etc ______1802 growers, particularly prices which are so Published by the Division of the Federal Federal Water Service Corp— 1803 low as to represent losses to growers, and Register, The National Archives, pursuant to thereby establish and maintain a more the authority contained in the Federal Utilities Power & Light Corp_ 1803 Register Act, approved July 26, 1935 (49 stable market for said fresh prunes and Stat. L. 500), tinder regulations prescribed tend to restore prices to growers of fresh by the Administrative Committee, with the prunes to a level that will have a pur­ approval of the President. chasing power with respect to articles The Administrative Committee consists of pursuant to the provisions of the act and that farmers buy equivalent to the pur­ the Archivist or Acting Archivist, an officer regulations thereunder, on the fifteenth chasing power of fresh prunes in the base of the Department of Justice designated by day of April, 1938, give notice of a hear­ the Attorney General, and the Public Printer period; or Acting Public Printer. ing to be held in Milton, Oregon, on May The dally issue of the F ederal R egister 3, 1938,1 on a proposed order regulating (5) That the methods provided for the will be furnished by mail to subscribers, free the handling of fresh prunes grown in regulation of shipments are fair and of postage, for $1 per month or $10 per year; equitable; single copies 10 cents each; payable in ad­ Umatilla County in the State of Oregon, vance. Remit by money order payable to and Walla Walla and Columbia Counties (6) That this order is limited in its Superintendent of Documents, Government in the State of Washington, and did application to the smallest regional pro­ Printing Office, Washington, D. C. duction area and to the smallest re­ Correspondence concerning the publica­ upon said date and at said place, con­ tion of the F ederal R egister should be ad­ duct a public hearing thereon, and did gional marketing area that is practicable, dressed to the Director, Division of the give opportunity to all interested parties consistently with carrying out the de­ Federal Register, The National Archives, to be heard concerning the said proposed clared policy of the act, and that the is­ Washington, D. C. order; and suance of several orders applicable to Whereas, the Secretary has found and any subdivision of such regional pro­ proclaimed that the purchasing power duction and marketing areas would not effectively carry out the declared policy CONTENTS— Continued of fresh prunes grown in Umatilla County in the State of Oregon, and Walla Walla of the act; and and Columbia Counties in the State of (7) That this order and all the terms T itle 43— P ublic L ands— Contd. Washington, during the period August and conditions thereof will tend to ef­ General Land Office : Page 1909-July 1914, cannot be satisfactorily fectuate the declared policy of the act Mineral leasing acts, disposi­ determined from the available statistics with respect to fresh prunes grown in tion of filing fees accom­ of the Department of Agriculture, but the said area by establishing and main­ taining such orderly marketing condi­ panying applications for that the purchasing power of such com­ leases, etc______1800 modity can be satisfactorily determined tions therefor as will establish prices to Oregon and California Rail­ from available statistics of the Depart­ producers thereof at a level that will give such fresh prunes a purchasing road and reconveyed Coos ment of Agriculture for the period Au­ power with respect to articles that such Bay Wagon Road grant gust 1919-July 1929, and the period Au­ lands, sale of timber— a 1795 gust 1919-July 1929, is the base period producers buy equivalent to the purchas­ ing power of such fresh prunes in the Phosphate, leases or use per­ to be used in connection with this order base period and by protecting the inter­ mits for mining of------1795 in determining the purchasing power of est of the consumer by (a) approaching such commodity; and the level of prices which it is declared in NOTICES Whereas, the Secretary further finds the act to be the policy of Congress to upon the basis of the evidence intro establish by a gradual correction of the Department of Agriculture: duced at the hearing and the record current level of prices at as rapid a rate Farm Security Administration: thereof; as the Secretary deems to be in the pub­ Wisconsin, designation o f (1) That customarily more than 95 lic interest and feasible in view of the counties for tenant pur­ per cent of all shipments of fresh prunes current consumptive demand in domes­ chase loans------1800 grown in Umatilla County in the State tic and foreign markets, and by (b) au­ Department of Commerce: of Oregon, and Walla Walla and Colum thorizing no action which has for its Bureau of Marine Inspection bia Counties in the State of Washington purpose the maintenance of prices to and Navigation: is in the current of interstate or foreign producers above the level which it is Meeting of Executive Com­ commerce and directly burdens, ob declared in the act to be the policy of mittee, Board of Super­ structs or affects such commerce; Congress to establish; and vising Inspectors------1800 (2) That at the time of the hearing (8) That the pro rata contribution of Federal Trade Commission: the prices received by the growers of handlers to the expenses of the adminis­ Orders appointing examiners, such fresh prunes were at a level that trative agency herein created, based upon etc*: gave such fresh prunes a purchasing the quantity of fresh prunes shipped, American Memorial Co------1801 power with respect to articles that such as provided in this order, is fair and Gimbel Brothers, Inc., and growers buy appreciably below the pur equitable; and Morris Kaplan & Son, chasing power of such fresh prunes dur Whereas, the Secretary of Agriculture • In c ______1801 ing the base period; further finds: Jones, Josiah L------1801 (3) That in the past, lack of regulation (1) That the marketing agreement Monticello Drug Co------1802 of shipments of fresh prunes produced regulating the handling of fresh primes Palazzolo, J------1800 in Umatilla County in the State of grown in Umatilla County in the State Sales on Sound Corp------1801 Oregon, and Walla Walla and Columbia of Oregon, and Walla Walla and Colum­ Yancey, R. Frank, trading as Counties in the State of Washington bia Counties in the State of Washington, Monarch China Co------1801 was an important factor contributing to executed by him on July 19, 1938 and upon which a public hearing was held Interstate Commerce Commission: on May 3, 1938, was signed by handlers California motor carrier rates— 1802 *3 F. R. 899 DL FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1781

who handled more than fifty percent of an agent, broker, representative or prunes in the area covered by this order. such commodity produced during the otherwise, in the current of interstate At any such election, designating the period August 1, 1936-October 1, 1937; or foreign commerce or so as directly two nominees aforesaid, each grower and to burden, obstruct or affect interstate shall cast only one vote for each nominee, (2) That this order regulates the han­ or foreign cofnmerce. on behalf of himself, his agents, part­ dling of said fresh prunes in the same 8. “To ship” means to convey in, to ners, affiliates, subsidiaries, and rep­ manner as the said marketing agreement ship in, or to cause to be conveyed in, resentatives. Each grower member and does, and is made applicable only to per­ or in any other way to put prunes in, alternate so nominated shall be a grower, sons in the respective classes of industrial the channels of trade by conveying or who produces prunes in the area covered and commercial activities specified in the causing prunes to be conveyed by rail­ by this order and who does not handle aforesaid marketing agreement; and road, truck, boat, or any other means prunes in excess of twenty (20) percent Whereas, the Secretary of Agriculture whatsoever (except as a common car­ of the quantity grown by him, nor shall finds and determines that the issuance rier of prunes owned by another per­ such member or alternate be an employee of this order is favored by producers, son), in the current of interstate or or representative of a handler. who, during the marketing seasons of foreign commerce, or so as directly to 3. One member of the Control Com­ 1936 and 1937, which the Secretary de­ burden, obstruct, or affect interstate or mittee and his alternate shall represent termines to be a representative period, foreign commerce. growers of prunes not members of the produced for market at least two-thirds 9. “Control Committee” means the Blue Mountain Prune Growers Coopera­ of the volume of such commodity pro­ Control Committee provided for in, and tive. Such member and his alternate duced for market within the production created pursuant to, article H of this shall be selected by the Secretary from area specified in such order; order. two nominees designated by all growers Now, therefore, it is ordered by the 10. “Fiscal year” means the period of of prunes not members of the Blue Secretary of Agriculture, acting under twelve (12) months beginning May 1 Mountain Prune Growers Cooperative at the authority vested in him as aforesaid, and ending April 30, both inclusive, of an election held at a general meeting, in that the handling of fresh prunes grown each calendar year. which all such growers of prunes shall in Umatilla County in the State of Ore­ 11. “Area” means Umatilla County in be entitled to participate, or from other gon, and Walla Walla and Columbia the State of Oregon, and Walla Walla growers of prunes not members of the Counties in the State of Washington, and Columbia Counties in the State of Blue Mountain Prune Growers Coopera­ in the current of interstate or foreign Washington. tive in the area covered by this order. commerce or so as directly to burden, At any such election, designating the obstruct or affect interstate or foreign ARTICLE n.— ADMINISTRATIVE BODY two nominees aforesaid, each grower commerce in such fresh prunes from S e c t io n 1. Control committee mem­ shall cast only one vote for each nominee, and after the date herein specified shall bership.— 1. A Control Committee, con­ on behalf of himself, his agents, part­ be in conformity to, and in compliance sisting of nine (9) members, is hereby ners, affiliates, subsidiaries, and repre­ with, the terms and conditions of this established to administer the terms and sentatives. Each grower member and order. provisions of this order as herein spe­ alternate so nominated shall be a grower, ARTICLE I.— DEFINITIONS cifically provided. There shall be an who produces prunes in the area covered alternate for each of said nine (9) mem­ by this order and who does not handle S e c t io n 1. Term s.—As used in this bers of the Control Committee. The order, the following terms have the fol­ prunes in excess of twenty (20) percent initial members and alternates shall be lowing meanings: of the quantity grown by him, nor shall selected in accordance with the provi­ 1. “Secretary” means the Secretary of such member or alternate be an employee sions of this article and shall serve for or representative of a handler. Agriculture of the United States. a term ending April 30, 1939. The 2. “Act” means Public Act No. 10, 73rd 4. Four members of the Control Com­ members and alternates of said Control Congress, as amended and as reenacted mittee shall represent all handlers of Committee selected subsequent to those and amended by the Agricultural Mar­ prunes. The four members of the Con­ selected for the aforesaid initial period keting Agreement Act of 1937, approved trol Committee and their respective alter­ ending April 30, 1939, shall be selected on June 3, 1937, as amended. nates, representing handlers of prunes, in accordance with the provisions of 3. “Person” means individual, partner­ shall be selected by the Secretary from this article and shall serve for a term ship, corporation, association, or any a group of eight nominees designated by of one year, beginning on May 1. In other business unit. handlers of prunes in the area included the event any members or alternates, in this order, at an election held at a 4. “Primes” means and includes all selected subsequent to those selected for general meeting in which all handlers varieties of fresh prunes of the species the aforesaid initial period ending of prunes shall be entitled to participate, Primus domestica grown in the area de­ April 30, 1939, are selected or have or from other handlers of prunes in said scribed in paragraph numbered 11 in qualified subsequent to May 1 of any area. At any such election, designating this section, and shipped in fresh form. year, the term of said members or alter­ the group of eight nominees aforesaid, “Grower” or “producer” means any nates shall end on April 30, following each handler shall cast only one vote for individual, each member of a partner­ their selection. All members or alter­ each standard car or equivalent quantity ship, any corporation, association, or any nates shall serve until their successors of prunes handled, in interstate or for­ other business unit engaged in growing shall have been selected and shall have eign commerce, by such handler during prunes, in the area covered by this order, qualified. Any person selected as a the season next preceding the year in who or which has a financial interest in member or alternate of the Control the crop. which the election is being held, on be­ Committee shall qualify by filing with half of his agents, partners, affiliates, 6. “Handler” or “shipper” means any the Secretary, or with the designated subsidiaries, and representatives; P ro ­ person who ships, or is engaged in ship­ representative of the Secretary, a writ­ vided, however, I f any such handler ping, marketing, consigning, or dealing ten acceptance of the appointment. shipped in interstate or foreign com­ in prunes, either in person or as or 2. One member of the Control Com­ merce less than one standard car or through an agent, broker, representa­ mittee and his alternate shall represent equivalent quantity of prunes during tive or otherwise, in the current of in­ growers of prunes. Such member and such season, such handler shall be en­ terstate or foreign commerce or so as his alternate shall be selected by the titled to cast one vote in said election. directly to burden, obstruct or affect Secretary from two nominees designated 5. Three members of the Control interstate or foreign commerce. by all growers of prunes at an election 7. “To handle” means to ship, mar­ Committee and their respective alter­ held at a general meeting in which all nates shall represent the Blue Moun­ ket, sell, consign or in any way deal in growers of prunes shall be entitled to prunes, either in person or as or through tain Prime Growers Cooperative. The participate, or from other growers of three members of the Control Commit- 1782 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 tee and their respective alternates, rep­ event of such member’s absence, or until Sec. 4. Procedure.— 1. The Control resenting the Blue Mountain Prune a successor for the unexpired term of Committee shall not perform any of its Growers Cooperative, shall be selected such member has been selected, in the powers or duties herein prescribed while by the Secretary from six nominees event of such member’s (a) removal, there are more than two vacancies in designated by and from the Board of (b) resignation, (c) disqualification, or its membership. A quorum shall consist Directors of said Cooperative, or from (d) death. of seven (7) members, or alternates then other members of the said Cooperative. 9. The members of the Control Com­ serving in the place and stead of any 6. Nominees for members of the Con­mittee, and their respective alternates members, in attendance at the meeting, trol Committee to represent the han­ shall serve without compensation, but and all decisions of the Control Com­ dlers, growers and the Blue Mountain said members and their respective alter­ mittee shall be made by not less than six Prime Growers Cooperative and their nates shall be reimbursed for expenses (6) affirmative votes. respective alternates whose term of necessarily incurred in the performance 2. The Control Committee may provide office shall expire on April 30, 1939, of their respective duties. for members voting by telephone, mail shall be selected at meetings of the Sec. 2. Powers.—The Control Com­ or telegraph upon due notice to all mem­ handlers, growers and the Board of Di­ mittee shall have the following powers; bers, and promptly after voting by tele­ rectors of the Blue Mountain Prune 1. To administer, as herein specifically phone, the members thus voting shall Growers Cooperative called by the Sec­ provided, the terms and provisions of this confirm in writing the votes so cast by retary, or such person as the Secretary order; telephone. may designate, as soon as practicable 2. To make administrative rules and 3. The members of the Control Com­ after the effective date of this order. regulations in accordance with, and to mittee, including successors and alter­ Each of such meetings shall select its effectuate the terms and provisions of, nates, and any agent or employee ap­ chairman and secretary. After the se­ this order; pointed or employed by the Control Com­ lection of the nominees to represent 3. To receive, investigate, and report mittee shall be subject to removal or handlers, growers and the Blue Moun­ to the Secretary complaints of violations suspension by the Secretary at any time. tain Prune Growers Cooperative, from of this order; and Each and every regulation, decision, de­ whom the Secretary may select the 4. To recommend to the Secretary termination or other act of the Control members and alternates to represent the amendments to this order. Committee shall be subject to the con­ handlers, growers and the Blue Moun­ Sec. 3. D uties.—The duties of the Con­ tinuing right of the Secretary to disap­ tain Prune Growers Cooperative, respec­ trol Committee shall be as follows: prove of the same at any time, and, upon tively, the chairman and the secretary 1. To act as intermediary between the such disapproval, shall be deemed null of each of the meetings shall forthwith Secretary and any producer or handler; and void except as to acts done in re­ t r ansm it to the Secretary, or to such 2. To keep minute books and records liance thereon or in compliance there­ person as the Secretary may designate, which will clearly reflect all of the acts with prior to such disapproval by the their certificate as to the number of and transactions of said Control Com­ Secretary - votes cast for said nominees and the mittee, and such minute books and rec­ Sec. 5. Funds and other property.— names of the nominees so designated. ords shall be subject at any time to 1. All funds received by the Control Com­ Nominees for the handler members, examination by the Secretary or by such mittee pursuant to any of the provisions the grower members, and the members person as may be designated by the of this order shall be used solely for the representing the Blue Mountain Prune Secretary; purposes herein specified, and the Secre­ tary may require the Control Committee Growers Cooperative, and their respec­ 3. To investigate, from time to tune, and its members to account for all re­ tive alternates, selected subsequent to and assemble data on, the growing, ship­ ceipts and disbursements. those selected for the aforesaid initial ping and marketing conditions respect­ 2. Upon the death, resignation, re­ period ending April 30, 1939, shall be ing prunes grown in the area covered moval or expiration of the term of office designated by the aforesaid respective by this order, and to furnish to the Sec­ of any member of the Control Commit­ groups each year not less than 20 days retary such available information as may nor more than 40 days prior to April 30; tee or of any employee of the Control be requested; Committee all books, records, funds and and said nominees shall be designated 4. To perform such duties as may be at meetings and elections caused to be other property in his possession shall assigned to it from time to time by the be delivered to the Control Committee held by the Control Committee, and said Secretary in connection with the admin­ meetings and elections shall be of the or to his successor in office, and such as­ istration of section 32 of the Act to signments and other instruments shall same character and specification, and Amend the Agricultural Adjustment Act, the procedure shall be substantially the be executed as may be necessary to vest and for other purposes, Public No. 320, in the Control Committee or his suc­ same, as specified hereinabove for the 74th Congress, approved August 24, 1935, designation of nominees for the initial cessor full title to all the books, records, as amended: period ending April 30, 1939. funds and other property in the pos­ 5. To cause the books of the Control session or under the control of such 7. To fill any vacancy occasioned by Committee to be audited by one or more member or employee pursuant to this the failure of any person, selected as a competent accountants at least once order. member of the Control Committee or se­ each fiscal year and at such other times 3. The Control Committee may, with lected as an alternate, to qualify, or the as the Control Committee may deem the approval of the Secretary, maintain death, removal, resignation or disquali­ necessary or as the Secretary may re­ in its own name, or in the names of its fication of any qualified member or alter­ quest, and to file with the Secretary members, a suit against any shipper for nate, a successor for his unexpired term copies of any and all audit reports made; the collection of such shipper’s pro rata shall be selected at a meeting in the 6. To appoint such employees as it may share of expenses. manner heretofore indicated. If a suc­ deem necessary, and to determine the cessor for any such vacancy is not se­ salaries and define the duties of such ARTICLE III.— REGULATION OP SHIPMENTS lected within 20 days after such vacancy occurs, the Secretary may select such employees; S e c t io n 1. Establishment of regula­ member or alternate without regard tc 7. To give the Secretary, or the desig­ tion period.— 1. It shall be the duty of his nomination, or may select a successor nated agent of the Secretary, the same the Control Committee to investigate to fill such vacancy from persons not notice of meetings of the Control Com­ supply and demand conditions with re­ nominated at an election so held. mittee as is given to the members of the spect to primes. Whenever such con­ 8. An alternate for a member of the Control Committee; and ditions make it advisable to regulate the Control Committee, selected pursuant to 8. To select a chairman of the Control shipment of prunes, the Control Com­ tbe provisions of this order, shall act in Committee and, from time to time, such mittee shall recommend to the Secre­ tary the establishment of a regulation the place and stead of such member, in other officers as it may deem advisable. FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1783

period or series of regulation periods The Control Committee shall report to during the season or the remainder of during which the shipments of prunes the Secretary all determinations and the season. The Control Committee shall may be regulated pursuant to the pro­ recommendations of the Control Com­ notify, by such methods as may be visions of this article. Such recom­ mittee pursuant to the provisions of this deemed adequate, under the circum­ mendation of the Control Committee section and the evidence on which such stances, each shipper and grower of the shall be made at a meeting of the Con­ determinations and recommendations amount of his allotment. trol Committee held at least 24 hours were predicated. 2. Each shipper shall apportion the prior to the commencement of such rec­ 2. The Control Committee shall ad­ quantity of prunes represented by his al­ ommended regulation period or series of vise each shipper and each grower who lotment equitably among the growers regulation periods. The Control Com­ has reported prunes available for ship­ whose prunes he reported to the Control mittee shall promptly notify all grow­ ment of the result of the original de­ Committee pursuant to section 2 of this ers and shippers of such recommenda­ termination or any revised determina­ article. tion by giving notice in such manner tion of the Control Committee with re­ Sec. 5. Lending and transfer of allot­ as it shall deem adequate under the cir­ gard to the probable total quantity of ments.—Subject to such procedural rules cumstances. primes available for shipment by such and regulations as the Control Commit­ 2. Based upon such recommendationsshipper and grower during the season tee, with the approval of the Secretary, made pursuant to paragraph 1 of this or remainder of the season. may prescribe, shippers and growers tP section or other information available Sec. 3. Determination of total advisa­ whom allotments have been made may to the Secretary, the Secretary may es­ ble shipments.—For each regulation pe­ transfer such allotments in whole or in tablish a regulation period or series of riod established pursuant to section 1 part. The amount of such transfer shall regulation periods, if the Secretary shall of this article, the Control Committee be deducted from the allotment of the find that to establish a regulation pe­ shall procure available evidence con­ transferor and added to the allotment of riod or series of regulation periods for cerning the supply of and demand for the transferee. Shippers may also bor­ shipments of prunes in the current of prunes during the period for which reg­ row allotments or portions of allotments interstate or foreign commerce during ulation of shipments is contemplated from other shippers: Provided, That the the particular period or periods within and from such evidence the Control shipper borrowing the allotment shall the season would tend to effectuate the Committee shall determine the total agree to return to the lender at a later declared policy of the act, and he shall quantity of prunes which it deems ad­ period of time in the same shipping sea­ notify the Control Committee of the visable to be shipped during such regu­ son an allotment or portion of an allot­ establishment thereof, as well as of the lation period or during each day within ment of the same quantity. The lending time of commencement, duration and a regulation period. The evidence pro­ of allotments shall be subject to such termination thereof. cured pursuant to this section and the procedural rules and regulations as the Sec. 2. Computation of quantity avail­ recommendation of the Control Com- j Control Committee, with the approval of able for Shipment.— 1. H ie Control mittee as to total or daily advisable the Secretary, may prescribe. Committee, prior to the beginning of shipments during any regulation period Sec. 6. Over and undershipments. — No shipments in each season, shall compute shall be transmitted to the Secretary. shipper shall ship prunes in excess of the total "quantity of prunes which will Sec. 4. Fixing of allotments by the his allotment for any regulation period be available for shipment during the Secretary.— 1. From the reports made or any day within a regulation period, season. To assist in such determina­ pursuant to sections 2 and 3 of this except for additional allotments trans­ tion,. each shipper shall report to the article and other available information, ferred or borrowed from a shipper or Control Committee, in such form and the Secretary shall determine (a) the grower pursuant to the provisions of substantiated in such manner as the total quantity of prunes available for this article; Provided, however, That in Control Committee may prescribe, the shipment by each and all shippers and the event such shipper’s daily allotment total quantity of prunes available for growers during the season or the re­ plus all allotments transferred to such shipment to which he has legal title or mainder of the season, and (b) the total shipper, shall give such shipper the right for which he has authority from the quantity of prunes advisable to be ship­ to ship a fractional part of a carload, owners or growers thereof to handle, ped during the regulation period, or (c) such shipper may ship such fractional and also the name of each such owner the quantity advisable to be shipped each carload at such later date as will per­ or grower and the quantity of prunes day during the regulation period. There­ mit the accumulation of such fractional which such shipper is authorized to upon the Secretary shall fix the allotment carloads into one whole carload. The handle for each such owner or grower. for each shipper and grower reporting Control Committee shall endeavor to Each grower having prunes which no prunes available for shipment by direct­ secure such transfers among the shippers shipper has authority to handle may in ing; (a) that the allotment for each ship­ holding allotments for such fractional like manner report to the Control Com­ per or grower for such regulation period carloads as will cause the shipment of mittee his total quantity of prunes avail­ shall be that percentage of the total such accumulated fractional carloads to able for shipment during the season. quantity of prunes advisable for ship­ be evenly distributed over the regulation Such reports and the orchards repre­ ment during the regulation period which period. sented by them may be checked by the the total quantity of prunes available for Sec. 7. Modification or termination of Control Committee or the employees shipment by each such grower and ship­ regulation period.— If the limitation of duly designated by it in such manner as per during the season or the remainder of shipments during any regulation period may be necessary to arrive at a reason­ the season is of the total quantity of is rendered unnecessary by reason of un­ ably correct determination of the total prunes available for (shipment by all foreseen increased demand, reduction in quantity of prunes available for ship­ shippers and growers during the season the available supply or other causes, the ment during such season, and on the or the remainder of the season; or (b) Secretary may modify or terminate such basis of such check or recalculation of that the allotment for each shipper and regulation. the reports submitted by each shipper or grower for each day during such regula­ Sec. 8. Shipments for charitable and grower, the Control Committee may re­ tion period shall be that percentage of relief purposes.—Nothing contained in vise any such report. The total quan­ the total quantity of prunes advisable this order shall be construed to authorize tity of prunes available for shipment by for shipment during each day of the reg­ any limitation of the right to ship prunes each grower and handler for the re­ ulation period which the total quantity for consumption by charitable institu­ mainder of a season may be revised at of prunes available for shipment by each tions or distribution by relief agencies. the beginning of any regulation period shipper or grower during the season or whenever such revision is substantiated the remainder of the season is of the ARTICLE IV.— REGULATION BY GRADE by additional information available to total quantity of prunes available for S ection 1. Recommendation.— 1. the Control Committee or the Secretary. shipment by all shippers and growers Whenever the Control Committee deems 1784 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 it advisable to regulate the shipment of Control Committee with respect to such trol Committee shall give notice likewise any grade of primes for a specified period, exemption certificates, he may appeal of all regulations issued and forms pre­ it shall so recommend to the Secretary. to the Secretary, and the Secretary may scribed as it may deem advisable to In such event the Control Committee modify or cancel the issuance of exemp­ procure the dissemination of informa­ shall furnish to the Secretary all infor­ tion certificates, or the Secretary may tion to all interested persons. mation and data upon which such rec­ authorize the issuance of exemption cer­ Sec. 4. Price filling and posting.— Im­ ommendation is based, including but not tificates. The authority of the Secre­ mediately after a price filing regulation being limited to information with respect tary to supervise and control the issu­ period becomes effective, pursuant to the to the factors affecting the supply of and ance of exemption certificates is plenary provisions of this article, each handler demand for prunes by grade. Such rec­ and complete, and any determination shall file with the Control Committee a ommendation, including the time of com­ made by the Secretary with respect to complete schedule of prices at which he mencement and termination of the regu­ exemption certificates shall be final. quotes, offers for sale or sells prunes; lation period, shall be made at a meeting Sec. 3. Grading and certification .— 1. Provided, however, That such filed prices of the Control Committee held at least During any grade regulation period or shall not apply to prunes sold at auction twenty-four hours prior to the com­ periods established pursuant to the pro­ by such handlers. All such schedules mencement of such regulation period. visions of this article, all shipments of and revisions thereof filed pursuant to The Control Committee shall notify han­ prunes, in interstate or foreign com­ this section of this article shall be posted dlers and growers of such recommenda­ merce, grown in the area covered by this in the office of the Control Committee. tion by giving notice thereof in such order shall be graded and certified on The Control Committee shall notify all manner as it may deem adequate under the basis of the grades now promulgated handlers in the area covered by this the circumstances. by the United States Department of agreement of all price schedules or re­ 2. Based upon such recommendation Agriculture, or as the same may be visions thereof by mail posted at or be­ made pursuant to paragraph 1 of this modified or changed hereafter. fore the end of the same business day section, or other information available 2. Each handler, prior to making each such schedule or revision thereof was to the Secretary, the Secretary may es­ shipment of prunes in interstate or for­ filed. Such notice shall state the time tablish a regulation period, if the Sec­ eign commerce during any such regula­ at which such filed price schedules or retary shall find that to limit the ship­ tion period established pursuant to this revisions thereof shall become effective. ment of a particular grade of prunes in article, shall have the primes included Sec. 5. Revision of price schedules.— the current of interstate or foreign in each such shipment inspected by a In event any handler desires to quote, commerce, during such regulation pe­ duly authorized representative of the offer for sale or sell prunes at a price riod, would tend to effectuate the de­ Federal-State Inspection Service, and or prices different from the price or clared policy of the act. Such regula­ each such shipper shall submit promptly, prices stated in the schedule filed by tion of shipments of prunes may be or cause to be submitted promptly, to him with the Control Committee, such accomplished by (a) prohibiting the the Control Committee shipping point handler shall file with said Committee shipment of certain grades during such inspection certificates issued by the Fed­ a revised schedule of his prices. Such period, or (b) by prohibiting the ship­ eral-State Inspection Service stating the revised schedule shall become effective ment of a part of any grade. When grade of prunes in each such shipment. at such time as may be established by the Secretary has determined to regu­ ARTICLE V.----PRICE FILING AND POSTING the Control Committee, after it has been late shipments as provided in this arti­ received by the Committee; Provided, cle, he shall immediately notify the Section 1. Recommendation.—When­ however, That if such period of time is Control Committee of such determina­ ever the Control Committee deems it ad­ less than twenty-four (24) hours or tion, and the Control Committee shall visable that prunes should be sold by more than forty-eight hours, it shall be immediately notify shippers and grow­ handlers only at prices filed by such approved by the Secretary. If any han­ ers of such determination by giving no­ handlers, it may so recommend to the dler files a revised price schedule any tice in such manner as the Control Secretary. Such recommendation, in­ other handler may file a revised price Committee shall deem adequate under cluding the time of commencement and schedule which shall become effective the circumstances. termination of the regulation period, at the same time as the schedule filed shall be made at a meeting of the Con­ Sec. 2. Exemptions.—1. In the event by the first handler; Provided, Such of a regulation period established pur­ trol Committee held at least twenty-four price schedule is not lower than that suant to the provisions of this article, hours prior to the commencement of filed by the first handler. the Control Committee shall determine such regulation period. Sec. 6. Manner of filing prices.—The the percentage which the grades of the Sec. 2. Establishment.—Based upon Control Committee shall prescribe a prunes permitted to be shipped is of the such recommendation made pursuant to standard form of price schedule on total crop which would be shipped in section 1 of this article, or other infor­ which each handler shall file his selling the absence of regulation under this ar­ mation available to the Secretary, the prices, discounts, all other terms and ticle. The Control Committee shall an­ Secretary may establish a regulation conditions of sale and such other in­ nounce forthwith this percentage and period during which time handlers shall formation deemed necessary by the the procedure by which exemption cer­ file, in the manner hereinafter pre­ Control Committee for each grade and tificates will be issued to growers pur­ scribed, prices at which such handlers type of pack of prunes. Price sched­ suant to this section. may quote, offer for sale or sell prunes, ules filed or revised by telephone shall 2. If any grower shall present proof to if the Secretary deems that such regu­ be confirmed as soon as possible on the Control Committee that the regula­ lation of the flow of shipments of prunes standard forms signed by the handler. tion of shipments will permit the ship­ during the regulation period would tend The Control Committee shall cause the ment during the period of a percentage to effectuate the declared policy of the exact time and date that any schedule of his prunes less than the percentage act. is received to be written on forms pre­ found in accordance with paragraph 1 Sec. 3. Notice of regulation.—When­ scribed therefor. of this section, the Control Committee ever the Secretary establishes a regula­ shall issue to him an exemption certifi­ tion period pursuant to the provisions ARTICLE VI.— ASSESSMENTS cate allowing the shipment of such of this article, he shall notify the Con­ trol Committee thereof. The Control Section 1. Expenses and assess­ quantity of the limited grade as will ments.— 1. The Control Committee is make the percentage of his crop that Committee shall promptly notify ship­ pers and growers of such regulation by authorized to incur such expenses as the may be shipped equal to the percentage Secretary finds may be necessary to found in accordance with paragraph 1 giving notice in such manner as the carry out its functions under this order. of this section. If any grower is dissat­ Control Committee shall deem adequate The funds to cover such expenses shall isfied with the determination by the under the circumstances, and the Con- FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1785

be acquired by the levying of assessments in connection with any of the provisions direction of the Secretary as herein pro­ as hereinafter provided. of this order, except paragraph 3, section vided shall be subject to the same obliga­ 2. Each handler shall pay to the Con­ 4, of article n. tions and duties with respect to said trol Committee upon demand such han­ funds, property or claims as are herein­ ARTICLE X.— EFFECTIVE TIME AND TERMINA­ dler’s pro rata share, as is approved by above imposed upon the members of TION the Secretary, of the expenses as the said Committee or upon said joint trus­ Secretary finds will be necessarily in­ Section 1. Effective time .—This order tees. curred by the Control Committee for the shall become effective at such time as ARTICLE XI.— DURATION OF IMMUNITIES maintenance and functioning of the the Secretary may declare above his sig­ Control Committee during the fiscal year. nature attached hereto, and shall con­ Section 1. Duration of immunities.— Each handler’s share of such expenses tinue in force until terminated in one of The benefits, privileges, and immunities shall be that proportion thereof which the ways, hereinafter specified. conferred by virtue of this order shall the total quantity of prunes shipped by Sec. 2. Termination.— 1. The Secretary cease upon its termination except with such handler in the current of interstate may at any time terminate this order. respect to acts done under and during or foreign commerce during said fiscal 2. The Secretary shall terminate this the existence of this order, and the bene­ year is of the total quantity of prunes order whenever he finds that such termi­ fits, privileges, and immunities conferred shipped by all handlers in the current of nation is favored by a majority of the by this order upon any party, subject interstate or foreign comerce during said growers of prunes who, during said ship­ hereto shall cease, upon the termination fiscal year. Said assessment may be ad­ ping season, have been engaged, in the of this order, as to such party except justed from time to time by the Control area covered by this order, in the produc­ with respect to acts done under and dur­ Committee, with the approval of the Sec­ tion of prunes for market; Provided, ing the existence of this order. retary, in order to cover any later finding That such majority have, during such ARTICLE x n .— SEPARABILITY by the Secretary of estimated expenses period, produced for market, more than or the actual expenses of the Control fifty (50) percent of the total volume of Section 1. Separability.— If any pro­ Committee during said fiscal year. The prunes produced for market in the area vision of this order is declared invalid assessment of each handler for the fiscal covered by this order, but such termina­ or the applicability thereof to any person, year shall be due and payable at such tion shall be effective only if announced circumstance, or thing is held invalid, the time and shall be payable in such in­ on or before April 1 of the same fiscal validity of the remainder of this order stallments, if any, as the Control Com­ year. or the applicability thereof to any other mittee, with the approval of the Secre­ 3. This order shall, in any event, ter­ person, circumstance, or thing shall not tary, shall determine. minate whenever the provisions of the be affected thereby. 3. At the end of each fiscal year the act authorizing it cease to be in effect. ARTICLE XHI.— DEROGATION Control Committee shall credit each Sec. 3. Proceedings after termina­ contributing handler with the excess Section 1. Derogation.— Nothing con­ tion .—1. Upon the termination of this tained in this order is or shall be con­ of the amount paid by such handler order, the members of the Control Com­ above his pro rata share of the ex­ strued to be in derogation or in modi­ mittee then functioning shall continue fication of the rights of the Secretary penses, or debit such handler with the as joint trustees, for the purpose of difference between his pro rata share or of the United States (1) to exercise liquidating this order, of all funds and any powers granted by the act or other­ and the amount paid by such handler. property then in the possession or under Any such debits shall become due and wise, or (2) in accordance with such the control of the Control Committee, in­ powers, to act in the premises whenever payable upon the demand of the Con­ cluding claims for any funds unpaid or trol Committee. such action is deemed advisable. property not delivered at the time of such 4. Prom the funds acquired pursuant termination. Said trustees (a) shall con­ ARTICLE XTV.— LIABILITY OF CONTROL to this article the Control Committee tinue in such capacity until discharged COMMITTEE MEMBERS shall pay the salaries of its employees, by the Secretary; (b) shall from time Section 1. L ia b ility .— No member of if any, and pay the expenses necessarily to time account for all receipts and dis­ the Control Committee nor any em­ incurred in the performance of the du­ bursements or deliver all funds and prop­ ployee thereof shall be held liable indi­ ties of the Control Committee. erty on hand, together with all books vidually in any way whatsoever to any ARTICLE vn.----REPORTS and records of the Control Committee party hereunder or any other person for and the joint trustees, to such person as errors in judgment, mistakes, or other Section 1. R eports.—Upon the re­ the Secretary shall direct; and (c) shall, acts either of commission or omission as quest of the Control Committee, made upon the request of the Secretary, exe­ such member or employee, except for with the approval of the Secretary, each cute such assignments or other instru­ acts of dishonesty. handler shall furnish the Control Com­ ments necessary or appropriate to vest In witness whereof, M. L. Wilson, Act­ mittee, in such manner and at such in such person full title to all of the ing Secretary of Agriculture, acting un­ times as it prescribes, such information funds or claims vested in the Control der the provisions of Public Act No. 10, as will enable it to perform its powers Committee or the joint trustees pursuant 73rd Congress, as amended, and as reen­ and duties under this order. to this order. Any funds collected for acted and amended by the Agricultural ARTICLE VIH.— AMENDMENTS expenses pursuant to article V I of this Marketing Agreement Act of 1937, for order and held by such joint trustees or the purposes and within the limitations Section 1. Proposals.— Amendments such person over and above amounts nec­ therein contained and not otherwise, to this order may be proposed, from essary to meet outstanding obligations does hereby execute and issue in dupli­ time to time, by the Control Committee, and the expenses necessarily incurred by cate this order under his hand and the any party subject hereto, or by the the joint trustees or such other person in official seal of the Department of Agri­ Secretary. the performance of their duties hereun­ culture in the city of Washington, Dis­ ARTICLE IX.— AGENTS der, shall, as soon as practicable after trict of Columbia, on this 19th day of the termination of this order, be returned July 1938, and declares this order to be Section 1. Agents.—The Secretary may to the handlers pro rata in proportion to effective on and after 12:01 a. m., p. s. t. name, by a designation in writing, any their contributions made thereto pur­ July 23rd, 1938. person, including any officer or employee suant to this order. [ seal] m . L. W ilson, the Government or any Bureau or 2. Any person to whom funds, property Acting Secretary of Agriculture. Division in the Department of Agricul­ or claims have been delivered by the ture, to act as his agent or representative [P. R. Doc. 38-2080; Piled, July 20, 1938; Control Committee or its members upon 9:32 a. m.] 1786 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938

D etermination o f F a r m in g P ractices t o any time during 1938 of an average chemical fertilizer per acre of such land be C arried O u t i n C o n n e c t io n W it h amount of chemical fertilizer per acre fertilized equal to not less than 100 t h e P r o d u c t io n o f S u g ar c an e D u r in g of such land fertilized equal to not less pounds. t h e C rop Y ear 1938-39 for P u e r t o than 200 pounds. 4. For farms on which there are grow­ R ic o 4. For farms on which there are grow­ing at any time during the calendar year Pursuant to the authority vested in me ing at any time during the calendar year 1938 not more than 10 acres of sugar­ by Section 301 (e) of thè Sugar Act of 1938 not more than 10 acres of sugar­ cane: The application during the 1938 1937, I, M. L. Wilson, Acting Secretary cane: The application during the 1938 harvest season to the land from which of Agriculture, do hereby determine: harvest season to the land from which sugarcane was harvested, of the tops and sugarcane is harvested, of the tops and trash cut from such sugarcane; or the I trash cut from such sugarcane; or the application of fertilizer in the amounts, That in order to meet the require­ application of fertilizer in the amounts, and to the types of land, set forth in 3. ments of subsection (e) of section 301 and to the types of land, set forth in 3. above. of the said act, there shall be carried out above. m during the calendar year 1938, in connec­ n That in every case in which the appli­ tion with the production of the 1938-39 cation of fertilizer is required as afore­ crop of sugarcane in Puerto Rico, except That in order to meet the require­ said, the number of acres on which fer­ in the Island of Vieques, the following ments of said subsection (e) of section tilizer is to be applied in 1938 shall , not fanning practices: 301 of the said act, there shall be car­ be less than 100 percent of the number 1. For farms on which there are grow­ ried out during the calendar year 1938, of acres on which sugarcane is planted in ing at any time during the calendar in connection with the production of the 1938, and not less than 90 percent of the year 1938 more than 400 acres of sugar­ 1938-39 crop of sugarcane in the Island number of acres on which a ratoon crop cane: of Vieques, the following farming prac­ of sugarcane is started in 1938. (a) The application to land on which tices: Done at Washington, D. C., this 20th sugarcane is planted at any time during 1. For farms on which there are grow­ day of July, 1938. Witness my hand and 1938 of an average amount of chemical ing at any time during the calendar the seal of the Department of Agricul­ fertilizer1 per acre of such land fertilized, year 1938 more than 400 acres of sugar­ ture. which contains an average quantity of cane: [ s e a l ] M . L . W il s o n , available plant food1 equal to not less (a) The application to land on which Acting Secretary. than the greater of either: (i) 150 sugarcane Is planted at any time during [P. R. Doc. 38-2096; Piled, July 20, 1938; pounds, or Cii) 80% of the average 12:17 p. m.j quantity of such fertilizer which was 1938 of an average amount of chemical applied on similar land in 1936 or 1937, fertilizer per acre of such land fertilized which contains an average quantity of whichever was smaller. A m e n d m e n t t o D etermination o f N or­ (b) The application to land on which available plant food equal to not less than the greater of either: (i) 75 pounds, m a l Y ie l d o f C ommercially R ecover­ a ratoon crop of sugarcane is started at a b le S ugar P er A cre a n d E l ig ib il it y any time during 1938 of an average or (ii) 80% of the average quantity of such fertilizer which was applied on simi­ for P a y m e n t W i t h R espec t to A b a n ­ amount of available plant food per acre d o n m e n t and C rop D e f ic ie n c y for of such land fertilized equal to not less lar land in 1936 or 1937, whichever was smaller. F arm s i n t h e M a in l a n d C a n e S ugar than 120 pounds. A rea (b) The application to land on which 2. For farms on which there are a ratoon crop of sugarcane is started at Pursuant to the provisions of section growing at any time during the calen­ any time during 1938 of an average 303 of the Sugar Act of 1937, I, M. L. dar year 1938 more than 100, but not amount of available plant food per acre Wilson, Acting Secretary of Agriculture, more than 400 acres of sugarcane: of such land fertilized equal to not less do hereby determine that paragraph 2 of (a) The application to land on which than 60 pounds. the “Determination of (1) Normal Yield sugarcane is planted at any time dur­ of Commercially Recoverable Sugar Per ing 1938 of an average amount of chem­ 2. For farms on which there are grow­ Acre and (2) Eligibility for Payment with ical fertilizer per acre of such land fer­ ing at any time during the calendar Respect to Abandonment and Crop De­ tilized equal to not less than 400 pounds. year 1938 more than 100, but not more ficiency for Farms in the Mainland Cane (b) The application to land on which than 400 acres of sugarcane: Sugar Area, Pursuant to Section 303 of a ratoon crop of sugarcane is started (a) The application to land on which the Sugar Act of 1937,” issued April 15, at any time during 1938 of an average sugarcane is planted at any time during 1938/ be and the same is hereby amended amount of chemical fertilizer per acre 1938, of an average amount of chemical to include in district IV St. Bernard, of such land fertilized equal to not less fertilizer per acre of such land fertilized Jefferson, and Plaquemines parishes. than 320 pounds. equal to not less than 200 pounds. Done at Washington, D. C., this 20th day of July, 1938. Witness my hand and 3. For farms on which there are (b) The application to land on which the seal of the Department of Agricul­ growing at any time during the calen­ a ratoon crop of sugarcane is started at ture. dar year 1938 more than 10, but not any time during 1938 of an average more than 100 acres of sugarcane: amount of chemical fertilizer per acre [ s e a l ] M. L . W il s o n , of such land fertilized equal to not less Acting Secretary. (a) The application to land on which than 160 pounds. sugarcane is planted at any time dur­ [P. R. Doc. 38-2097; Piled, July 20,1938; 12:33 p.m .] ing 1938 of an average amount of 3. For farms on which there are grow­ chemical fertilizer per acre of such land ing at any time during the calendar year fertilized equal to not less than 250 1938 more than 10, but not more than 100 acres of sugarcane: BUREAU OF AGRICULTURAL pounds. ECONOMICS (b) The application to land on which (a) The application to land on which a ratoon crop of sugarcane is started at sugarcane is planted at any time during D e le g a t io n o f A u t h o r it y for t h e L and 1938 of an average amount of chemical U t il iz a t io n P rogram 1 “Chemical fertilizer” as used herein means J u n e 16, 1938. commercial chemical fertilizer not less than fertilizer per acre of such land fertilized 15 percent of the gross weight of which con­ equal to not less than 125 pounds. 1. Purpose.— (a) The purpose of this sists of plant food. (b) The application to land on which instruction is to designate the various 5 “Plant food” as used herein means the aggregate amount of nitrogen, available a ratoon crop is started at any time phosphoric acid and water soluble potash. during 1938 of an average amount of 13 F. R. 914 D L FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1787

Bureau officials who will exercise the (b) Execute life leases to the grantors acting for him in his absence may exer­ functions delegated to the Chief or Act­ or occupants of lands being acquired cise the applicable authority. ing Chief of Bureau by the Secretary in prior to or at the time the lands are (e) This instruction does n ot rescind his Memorandum No. 75.1 acquired. Such life leases will be exe­ the authority to accept options which 2. The assistant chief of bureau for cuted with the concurrenc of the the Chief of Bureau granted to officials land utilization will.— (a) Execute case­ Leader of the Division of Project Or­ in the Division of Land Acquisition by ments, leases, licenses, and other fo rm s ganization and in conformity with the a memorandum dated March 15, 1938. of contracts permitting the construction minimum requirements outlined in para­ However, such authority will, hereafter, and maintenance of telephone lines, pipe graph 4-b above for the execution of life be exercised in accordance with para­ lines, roads, irrigation and drainage leases after lands are acquired. graph 5—a of this instruction. ditches, etc., (but not those power lines 6. Regional directors will.— (a) File in (f ) The authorities will be exercised licenses for which are required by law the name of the United States, in ac­ in accordance with the restrictions con­ to be granted by the Federal Power Com­ cordance with the law of the state in­ tained in Secretary’s Memorandum No. mission), across project areas when such volved, applications for water rights 756 and such additional restrictions as construction will not materially inter­ covering waters to be impounded, im­ are contained herein. fere with the purposes of the project. peded, or diverted in their flow by con­ (g) All forms for leases, licenses, 3. The business manager will.— (a) struction work contemplated in connec­ easements, agreements, use permits, Execute legal documents for the land tion with the development of a project. etc., shall be submitted to the office of utilization programs under authorities No applications shall be filed which re­ the Solicitor for approval. which have been or are in the future quire the payment of filing fees or other [ s e a l ] c . W. K it c h e n , delegated to him. charges by the Government until it has Acting Chief of Bureau. 4. The leader of the division of project j been definitely determined that funds organization will.— (a) Under policies are available for the payment of such [F. R. Doc. 38—2075; Filed, July 2,1938; established by the Secretary, or by the charges. The authority hereby granted 12:44 p.m .] Chief of Bureau or by the Assistant Chief may be delegated in writing to project of Bureau for Land Utilization execute managers. leases, licenses, permits, agreements and (b) Grant temporary use permits (one TITLE 24—HOUSING CREDIT other forms of contracts permitting the year or less) such as temporary cropping use of lands acquired, when consistent agreements, temporary grazing agree­ HOME OWNERS’ LOAN with the purposes of the project, for ments, temporary building occupancy CORPORATION cropping, grazing, building occupancy, agreements, and temporary recreational B o n d o f I n d e m n it y fo r L o st C h e c k s recreational and incidental purposes, and incidental use permits. This au­ provided they do not extend for more thority will be exercised in accordance AMENDING THE TREASURY CHAPTER OF THE than ten years. with instructions issued from Washing­ MANUAL; REVOKING SEC. 702 AND AMEND­ ING SEC. 701 (b) Execute life leases to the grantors ton and may be redelegated in writing or occupants of land acquired, provided: to project managers. All forms used for Be it resolved, That pursuant to the l. Their occupancy and use will not granting such temporary uses for the authority vested in the Board by Home interfere with the purposes of the project. new program shall be approved by the Owners’ Loan Act of 1933 (48 Stat. 128, n . The lessees are 60 years of age or Leader of the Division of Project Or­ 129) as amended by Sections 1 and 13 over. ganization. of the Act of April 27, 1934 (48 Stat. m . The area to be used and occupied (c) Determine whether public build­ 643-647) and particularly by sub-Sec- ings, within the meaning of section 355 by the lessees does not consist of more tions a and k of Section 4 of said Act than 15 acres. of the Revised Statutes, will or will not as amended, Section 701 of the Treasury be constructed upon individual tracts of Chapter of the Consolidated Manual is IV. Life leases which do not conform land under contract of purchase and exe­ amended to read as follows, and Section to these requirements will be executed by cute statements to this effect which are 702 of the Treasury Chapter of the the Assistant Chief of Bureau for Land necessary for expediting land acquisition Consolidated Manual is hereby revoked: Utilization. and title clearance. This authority may S e c t io n 701. When it is desired to 5. The leader of the division of land be delegated in writing to project man­ stop payment of any check drawn on acquisition toill.— (a) Exercise options agers. the Treasurer of the United States be­ to purchase, and execute easements, 7. Scope of Instruction.—(a) The ofi­ cause of failure of the payee to receive leases, licenses, and other forms of con­ ciáis authorized by this instruction to same, or for any other reason, the State, tracts for the acquisition of real prop­ execute various forms of contracts axe Division, District, or Territorial Man­ erty or any interest therein, subject to also authorized to exercise all powers ager, or Regional Treasurer shall any reservations or exceptions which to revoke, terminate, or cancel (cancel promptly notify the Treasurer of the will not interfere with the use of the land acquisition contracts by mutual Corporation, describing the check, stat­ property for the purposes of the project, agreement) the respective contracts ing the name of the officer or agent of as approved. Any land acquisition which are exercisable either by the the Home Owners’ Loan Corporation by contract that exceeds the appraisal price terms of the contracts themselves or whom the check was drawn, giving, if by more than ten percent, or if less than by operation of law. possible, its payee, date, number, sym­ ten percent by more than $1,000, or any (b) The authorities are applicable to bol number, amount, reason for request­ such contract involving a purchase price the land utilization program authorized ing that payment be stopped, whether of $50,000 or over even though it does by Title I I I and related sections of the the check was endorsed, and if so, a not exceed the appraisal price, will be Bankhead-Jones Farm Tenant Act (new description of the endorsements. approved by the Assistant Chief of Bu­ program) and to the land utilization Upon determination by the Treasurer reau for Land Utilization prior to ac­ program initiated by the Farm Security that a check is outstanding, payment ceptance. The determination as to Administration (old program). will be stopped and, in appropriate whether or not the reservations or ex­ (c) “Regional directors” means both cases, a bond of indemnity and affi­ ceptions will interfere with the purposes the regional directors appointed by the davit will be transmitted for execution of the project will be made in coopera­ Bureau for the land utilization program by the claimant. Upon satisfactory exe­ tion with the Leader of the Division of and the officials acting in charge of Project Organization. cution of a bond of indemnity and affi­ regions for that program. davit, or, in appropriate cases, of an (d) In the absence of any official application and affidavit, and the ap­ 13 F. R. 1174 DL authorized to take actions, the person proval of such bond of indemnity and No. 141------2 1788 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 affidavit, or application and affidavit, by Adopted by the Federal Home Loan particular property are not of sufficient the General Counsel as to legal suffi­ Bank Board on July 18, 1938. amount to pay the charges or bills in­ curred, then same may be paid by the ciency and conformance with regula­ [ s e a l ] R. L. N agle, tions governing the issuance of dupli­ Secretary. broker out of the income from other cate checks, the Treasurer is authorized properties assigned to him for manage­ [F. R. Doc. 30-2085; Filed, July 20,1938; ment or may be paid by voucher to issue and sign duplicate checks upon 10:04 a.m .] any account of the Corporation now or through the regular procedure provided ihereafter established; provided that no therefor. An accounting shall be made duplicate check shall be issued until by such brokers for each and every item A m e n d in g t h e T r e a s u r y C h a p t e r o f t h e after the expiration of thirty (30) days of expense incurred hereunder and pay­ M a n u a l from the date of the original check, ment therefor shall be supported by except as hereinafter provided, or after Revoking Section 7.03 (.a) of Part 7 of proper receipts and releases, except as the close of the fiscal year following Chapter IV of Title 24 of the Code of provided elsewhere in the regulations. the fiscal year in which the original Federal Regulations All expenditures authorized hereunder check was issued. The signing of the shall be made under such instructions REVOKING SEC. 703 OF THE CONSOLIDATED and procedure as the Deputy General duplicate check by the Treasurer shall MANUAL constitute approval of the issuance of Manager in Charge of Property Man­ the duplicate check. The requirement Be it resolved, That pursuant to the agement, subject to the approval of the of a bond of indemnity and affidavit authority vested in the Board by Home General Manager and General Counsel, may be waived, in the discretion of the Owners’ Loan Act of 1933 (48 Stat. 128, may prescribe. Treasurer, in any of the following classes 129) as amended by Sections 1 and 13 of Be it further resolved, That the pro­ of cases; the Act of April 27, 1934 (48 Stat. 643- visions of this resolution shall be effec­ 647) and particularly by sub-Sections a tive August 1, 1938. (a) I f the Treasurer is satisfied that and k of Section 4 of said Act as the loss, theft, destruction, mutilation, Adopted by the Federal Home Loan amended, Section 7.03 (a) of Part 7 of Bank Board on July 19, 1938. or defacement, as the case may be, oc­ Chapter IV of Title 24 of the Code of curred without fault of the owner or Federal Regulations, the same being [ s e a l ] R. L. N ag le , holder and while the check was in the Section 703 (a) of Chapter V II of the Secretary. custody or control of the Home Owners’ Consolidated Manual is hereby revoked [F. R. Doc. 38-2086; Filed, July 20, 1938; Loan Corporation (not including the effective June 30, 1938. 10:04 a. m.] Postal Service when acting solely in its Adopted July 18, 1938, by the Federal capacity as the public carrier of the Home Loan Bank Board. mails), or of a person thereunto duly [ s e a l ] R. L. N a g le , authorized as lawful agent of the Home Secretary. TITLE 26—INTERNAL REVENUE Owners’ Loan Corporation; (b) If substantially the entire check [F. R. Doc. 38-2087; Filed, July 20,1938; BUREAU OF INTERNAL REVENUE is presented and surrendered by the 10:04 a. m.] owner or holder and the Treasurer is [T . D. 4830] satisfied as to the identity of the check G if t T ax presented, and that any missing portions A u t h o r it y o f C o n tr a c t B rokers T o are not sufficient to form the basis of a I n c u r C harges and T o M a k e P a y ­ REGULATIONS 79, AMENDED TO ACCORD WITH valid claim against the Home Owners’ m e n t PROVISIONS OF REVENUE ACT OF 1938 Loan Corporation or the United States; MANUAL AMENDMENT To Collectors of Internal Revenue and (c) If the Treasurer is satisfied that Be it resolved, That pursuant to the Others Concerned: the original check is not negotiable and authority vested in the Board by Home To conform with the provisions, in so cannot be made the basis of a valid claim Owners’ Loan Act of 1933 (48 Stat. 128- far as they relate to the gift tax, of Titles against the Home Owners’ Loan Corpor­ 129) as amended by Sections 1 and 13 H and V of the Revenue Act of 1938, ation or the United States. of the Act of April 27, 1934 (48 Stat. enacted May 28, 1938 (Public, No. 554, (d) I f the amount of the check is less 643-647) and particularly by Sub-sec­ Seventy-fifth Congress, Chapter 289, than $50 and the Treasurer is satisfied tions a and k of Section 4 of said Act third session), Regulations 79 (1936 that the giving of a bond of indemnity as amended, the fourth paragraph of Edition), approved February 26, 1936, would be an undue hardship to the Section 314 of Chapter II I of the Con­ are hereby amended as follows: owner or holder, it being ordinarily as­ solidated Manual be amended to read as The following quotation of section 505 sumed that the giving of a bond of follows: of the Revenue Act of 1938 is inserted indemnity would constitute an undue Contract Management Brokers and immediately preceding article 9: hardship in those instances where the Sec. 505, Revenue Act of 1938. Computa­ amount of the check is not over $20 and Contract Sales Brokers may incur charges in behalf of the Corporation in tion of net gifts.— the original check has not been received (a) Section 504 (b ) of the Revenue Act the performance of any of the functions by the payee; and of 1932, relating to the computation of net or duties required or authorized by the gifts, is amended to read as follows: (e) If the owner or holder is a State regulations, provided that if the amount “ (b ) Gifts less than $4,000.—In the case or political subdivision thereof, a cor­ of such charges exceeds $25.00 on any of gifts (other than gifts in trust or of future interests in property) made to any poration the whole of whose capital is particular property containing not more owned by the United States, a foreign person by the donor during the calendar year, than one unit or $50.00 on any prop­ the first $4,000 of such gifts to such person government, or a Federal Reserve Bank. erty containing more than one unit shall not, for the purposes of subsection (a), be included in the total amount of gifts The General Manager, in his discre­ during any monthly accounting period, made during such year.” tion, may waive the requirement that no the approval of the State or District (b ) The amendment made by subsection duplicate check be issued until the ex­ Manager shall first be obtained, except (a ) of this section shall be applied in com­ in any cases requiring emergency re­ puting the tax for the calendar year 1939 piration of thirty (30) days, and may, in anti each calendar year thereafter (but not event the payee refuses to execute a pairs for which the broker may incur the tax for the calendar year 1938 or a pre­ bond of indemnity or affidavit and in charges not exceeding $100.00. The vious calendar year), but such amendment broker is authorized to pay such charges shall not be applied in any computations in his opinion it is to the best interests of respect of the calendar year 1938 and previ­ the Corporation that a duplicate check incurred out of the rental income of ous calendar years for the purpose of com­ be issued, waive the requirement of the properties listed with him. I f the funds puting the tax for the calendar year 1939 bond of indemnity and affidavits. in possession of the broker from any or any calendar year thereafter. FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1789

Article 10 is amended to read as fol­ is amended to read as follows: The application, with the evidence, must lows: “An information return or notice on be filed with the collector, who will trans­ “A r t . 10. Total amount of gifts.— Ex­ Form 710 must be filed by every donee mit it to the Commissioner with his cept with respect to any gift in trust or or trustee (except in the case of a gift for recommendations as to the extension. of a future interest in property, the first a public, charitable, etc. purpose as de­ When it is received by the Commissioner, $4,000 of gifts made to any one donee scribed in article 13) to whom is trans­ it will be examined and, if possible, during the calendar year 1939 or during ferred in any one calendar year property within 30 days will be denied, granted, or any calendar year thereafter shall be by gift for which, as set forth in article tentatively granted subject to certain excluded in determining the total amount 20, the donor is required to file a gift tax conditions of which the donor will be of gifts for such calendar year. Except return.” notified. The Commissioner will not con­ with respect to any gift of a future inter­ sider an application for such an exten­ est in property, the first $5,000 of gifts The second sentence of article 23, sion unless request therefor is made to made to any one donee during the cal­ which reads— the collector on or before the due date. endar year 1938 or during any calendar “The return must be filed in duplicate If the executor desires to obtain an addi­ year prior thereto shall be excluded in and under oath, and therein must be tional extension, the request therefor determining the total amount of gifts listed and set forth all gifts (other than must be made to the collector on or be­ for such calendar year. The entire value future interests in property) made by the fore the date of the expiration of the of any gift made by a transfer in trust donor during the calendar year to any previous extension.” after December 31, 1938, and the entire one person to the extent that the aggre­ value of any gift of a future interest in gate value thereof exceeds $5,000 and all The second and third paragraphs of article 31, which read— property, must be included in the total gifts of future interests in property with­ amount of gifts for the calendar year in out regard to the value thereof.” “As a condition to the granting of such which such a gift is made.” an extension, the Commissioner may re­ is amended to read as follows: The first sentence of article 20, which quire the donor to furnish a bond in an reads— “The return must be filed in duplicate amount not exceeding double the amount and under oath. I f the return is filed of the tax. 'If a bond is required, it “Any individual resident or citizen of for the calendar year 1939, or for any must be filed with the collector within 10 the United States who within that por­ calendar year thereafter, it must set days after notification by the Commis­ tion of the calendar year 1932 subsequent forth every transfer by gift to any one sioner that such bond is required. The to June 6, 1932, or within any calendar donee during such calendar year which bond, if required, shall be conditioned year thereafter, made a transfer by gift singly or in the aggregate exceeds $4,000 upon the payment of the tax and interest to any one donee which exceeded $5,000 in value (or regardless of value in the assessed in connection therewith in ac- in value (or regardless of value if the gift case of a gift in trust or of a future in­ ! cordance with the terms of the extension was of a future interest) must file a gift terest in property). A return filed for granted, and shall be executed by a tax return on Form 709.” the portion of the calendar year 1932 surety company holding a certificate of subsequent to June 6, 1932, or for any is amended to read as follows: authority from the Secretary of the calendar year thereafter prior to the cal­ Treasury as an acceptable surety upon “Any individual resident or citizen of endar year 1939, must set forth every Federal bonds and shall be subject to the the United States who within the calen­ transfer by gift to any one donee during approval of the Commissioner. In lieu dar year 1939, or within any calendar such calendar year which singly or in of such surety, the bond may be secured year thereafter, makes a transfer or the aggregate exceeds $5,000 in value (or by the deposit of Liberty bonds, other transfers by gift to any one donee of a regardless of value in the case of a gift bonds or notes of the United States, any value or total value of more than $4,000 of a future interest in property).” public debt obligations of the United (or regardless of value in the case of a The seventh, eighth, ninth iand tenth States, or any bonds, notes, or other ob­ gift in trust or of a future interest in sentences of the first paragraph of arti­ ligations which are unconditionally guar­ property), must file a gift tax return for cle 31, which read— anteed as to both interest and principal such year on Form 709. In .the case of a by the United States, equal in their total transfer or transfers by gift to any one “A sworn statement of assets and lia­ par value to the amount of such bond. donee of a value or total value of more bilities of the donor is required and (See section 1126 of the Revenue Act of than $5,000 (or regardless of value if the should accompany the application. An 1926, as amended by section 7 of H. R. gift was of a future interest in property), itemized statement showing all receipts 4304, Public, No. 3, Seventy-fourth Con­ made by any individual resident or citi­ and disbursements for each of the three gress.) ” zen of the United States during the por­ months preceding the due date of the tax “I f an extension of time for payment tion of the calendar year 1932 subsequent shall also be submitted. The application of the tax is granted, the amount, time to June 6, 1932, or dining any calendar with the evidence must be filed with the for payment of which is so extended, year thereafter prior to the calendar collector, who will at once transmit it to shall be paid on or before the expiration year 1939, the filing of a gift tax return the Commissioner with his recommenda­ of the period of extension, together with on Form 709 by the donor for such year tions as to the extension. The Commis­ interest at the rate of 6 per cent per is required.” sioner will not consider an application annum on such amount from the date for an extension of time unless such ap­ The first sentence of article 21, which when the payment should have been reads— plication is made on or before the due made if no extension had been granted date of the tax for which the extension until the expiration of the period of the “All donees and trustees (except such is desired.” extension. (See section 521 and article organizations, etc., referred to in section 54.)” 505 and article 13) receiving property are amended to read as follows: transferred by gift in any one calendar “A sworn statement of assets and lia­ are amended to read as follows: year, shall file a notice on Form 710, bilities of the donor and an itemized “As a condition to the granting of such unless the value of the gift, or the aggre­ statement under oath showing all re­ an extension, the Commissioner will gate value of all the gifts, to the donee or ceipts and disbursements for each of the usually require the donor to furnish a to any one of the beneficiaries of the three months immediately preceding the bond in an amount not exceeding double trust is $5,000, or less, and the subject of month in which falls the date prescribed the amount for which the extension is the gift is not a future interest in for the payment of the tax are required property.” desired, or to furnish other security sat­ and should accompany the application. isfactory to the Commissioner for the 1790 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 payment of the liability on or before the the donor. It must appear that sub­ tions of the United States, or any bonds, date prescribed for the payment in the stantial fancial loss, for example, due to notes, or other obligations which are un­ extension, so that the risk of loss to the the sale of property at a sacrifice price, conditionally guaranteed as to both in­ Government will not be more at the end will result to the donor from making pay­ terest and principal by the United States, of the extension period than it was at ment of the deficiency at the date pre­ equal in their total par value to the the beginning of the period. I f a bond scribed for payment. I f a market ex­ amount of such bond. (See section 1126 is required it shall be conditioned upon ists, the sale of property at the current of the Revenue Act of 1926, as amended the payment of the amount for which market price is not ordinarily considered by section 7 of the Act of February 4, the extension is granted, together with as resulting in undue hardship. The 1935, 49 Stat. 20, U. S. C., 1934 edition, interest and additional amounts assessed Act provides that no extension will be Sup. n , Title 6, section 15.) in connection therewith, in accordance granted where the deficiency is due to “The amount for which an extension with the terms of the extension granted, negligence or intentional disregard of is granted, with the additions thereto, and shall be executed by a surety com­ rules and regulations or to fraud with shall be paid on or before the expiration pany holding a certificate of authority intent to evade tax. of the period of the extension without from the Secretary of the Treasury as “An application for an extension of the necessity of notice and demand from an acceptable surety on Federal bonds, time for the payment of the deficiency the collector. Payment of the amount and shall be subject to the approval of should be made under oath and must for which the extension was granted and the Commissioner. In lieu of such a be accompanied or supported by evidence the additions thereto before the expira­ bond, the donor may file a bond secured showing the undue hardship that would tion of the extension will not relieve the by the deposit of bonds or notes of the result to the donor if the extension were donor from paying the entire amount of United States, any public debt obliga­ refused. A sworn statement of assets interest provided for in the extension/’ tions of the United States, or any bonds, and liabilities of the donor and an Immediately preceding article 45 there notes, or other obligations which are itemized statement under oath showing is inserted a partial quotation of section unconditionally guaranteed as to both all receipts and disbursements for each 819 of the Revenue Act of 1938, as fol­ interest and principal by the United of the three months immediately pre­ lows: States, equal in their total par value to ceding the month in which falls the date Sec. 819, Revenue Act of 1938. Abatement the amount of such bond. (See section prescribed for the payment of the de­ of jeopardy assessment. * * * 1126 of the Revenue Act of 1926, as ficiency are required and should accom­ (c) Section 514 (c) of the Revenue Act of amended by section 7 of the Act of Feb­ pany the application. The application, 1932 is amended to read as follows: ruary 4, 1935, 49 Stat. 20, U. S. C., 1934 with the evidence, must be filed with the “ (c) Amount assessable before decision of edition, Sup. II, Title 6, section 15.) collector, who will transmit it to the Board:-—The jeopardy assessment may be “The amount for which an extension made In respect of a deficiency greater or Commissioner with his recommendation less than that notice of which has been is granted, with the additions thereto, as to the extension. When it is received mailed to the donor, despite the provisions shfl.ll be paid on or before the expiration by the Commissioner, it will be-examined of section 513 (f) prohibiting the determina­ of the period of the extension without and, if possible, within 30 days will be tion of additional deficiencies, and whether the necessity of notice and demand from or not the donor has theretofore filed a peti­ denied, granted, or tentatively granted tion with the Board of Tax Appeals. The the collector. Payment of the amount subject to certain conditions of which Commissioner may, at any time before the for which the extension was granted and the donor will be notified. The Com­ decision of the Board is rendered, abate such the additions thereto before the expira­ assessment, or any unpaid portion thereof, missioner will not consider an applica­ to the extent that he believes the assess­ tion of the extension will not relieve the tion for an extension of time for the ment to be excessive in amount. The Com­ donor from paying the entire amount of payment of a deficiency unless request missioner shall notify the Board of the interest provided for in the extension.” therefor is made to the collector on or amount of such assessment, .or abatement, if the petition is filed with the Board before Immediately preceding article 41, before the date prescribed for payment the m aking of the assessment or is subse­ there is inserted a partial quotation of thereof, as shown by the notice and de­ quently filed, and the Board shall have juris­ section 816 of the Revenue Act of 1938, mand from the collector. I f the donor diction to redetermine the entire amount of the deficiency and of all amounts assessed as follows: gesires to obtain an additional exten­ at the same time in connection there­ Sec. 816, Revenue Act of 1938. Extension sion, the request therefor must be made with.” * * * o f time for payment of deficiencies approved to the collector on or before the date of (e) * * * section 514 (f) of the Reve­ by Commissioner.— the expiration of the previous extension. nue Act of 1932 * * * [is] amended by The requirement of * * * section inserting at the end thereof the following 513 (i) of the Revenue Act of 1932 * * * “As a condition to the granting of such new sentence: “If any portion of the jeop­ of approval by the Secretary of extension of an extension, the Commissioner will usu­ ardy assessment is abated by the Commis­ time for payment of deficiency in * * * ally require the donor to furnish a bond sioner before the decision of the Board is gift tax shall not apply after thirty days rendered, the bond shall, at the request of after the date of the enactment of this Act, in an amount not exceeding double the the taxpayer, be proportionately reduced.” but the approval shall be by the Commis­ amount of the deficiency, or to furnish (f) The amendments made by this section sioner under regulations prescribed by the other security satisfactory to the Com­ shall be effective only with respect to jeop­ Commissioner with the approval of the missioner for the payment of the liability ardy assessments made after the date of the Secretary. enactment of this Act. on or before the date prescribed for the The second paragraph of article 45 is Article 44 is amended to read as fol­ payment in the extension, so that the amended by adding the following sen­ lows: risk of loss to the Government will not be tence at the end thereof: “A r t. 44. Extension of time tor pay­ more at the end of the extension period ment of deficiencies.—If it is shown to than it was at the beginning of the “ If the jeopardy assessment is made the satisfaction of the Commissioner period. If a bond is required it shall be after the date of the enactment of the that the payment of a deficiency upon conditioned upon the payment of the de­ Revenue Act of 1938, the Commissioner the date prescribed for payment thereof ficiency, interest, and additional amounts may, at any time before th# decision of would result in undue hardship to the assessed in connection therewith in ac­ the Board is rendered, abate the assess­ donor, the Commissioner may grant an cordance with the terms of the extension ment or any unpaid portion thereof, to extension of time for the payment of granted, and shall be executed by a surety the extent that he believes it to be ex­ the deficiency or any part thereof for company holding a certificate of author­ cessive in amount.” a period of time not in excess of 18 ity from the Secretary of the Treasury The third paragraph of article 45 is months and in exceptional cases for a as an acceptable surety on Federal bonds, amended by adding the following sen­ further period not in excess of 12 and shall be subject to the approval of tence at the end thereof: months. The extension will not be the Commissioner. In lieu of such a granted upon a general statement of bond, the donor may file a bond secured “If the Commissioner believes that the hardship. The term ‘undue hardship’ by the deposit of bonds or notes of the amount of the jeopardy assessment is means more than an inconvenience to United States, any public debt obliga­ excessive and abates a portion thereof FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1791 before the decision of the Board is ren­ ment of the tax is contained in section petition, whichever is earlier, the amount dered, the amount of the bond will be 528.” proportionately reduced at the request of such portion of the overpayment will of the donor.” are changed to read— be credited or refunded. Or if the Board determines as part of its decision that Immediately preceding article 57 there “A rt. 62. Authority for abatement, any portion of the overpayment was is inserted a quotation of section 821 of cred it, or. refund.—Authority for the made after the mailing of the notice of the Revenue Act of 1938, as follows: credit or refund of an overpayment is the deficiency, such portion will be cred­ contained in section 528, as amended, Sec. 821. Revenue Act of 1938. Interest ited or refunded. The portion of the accruing after October 24, 1933, and before and section 821 of the Revenue Act of overpayment, if any, made after the August 30, 1935, on delinquent income, 1938. As to the abatement of a jeopardy mailing of the notice of the deficiency estate, and gift taxes. assessment by the Commissioner before Interest accruing after October 24, 1933, will be credited or refunded even though and prior to August 30, 1935, on deUnquent the Board of Tax Appeals renders a de­ tiie Board has not determined as part of income, estate, and gift taxes shall be com­ cision, see article 45.” its decision that the overpayment was so puted at the rate of 6 per centum per annum. Any such interest accruing during Article 63 is amended by adding at the made, if the decision of the Board is such period which has been collected prior end thereof the following sentence: rendered before the expiration of 30 days to the date of the enactment of this Act after the date of the enactment of the in excess of such rate shall be credited or “No interest is allowable on any credit Revenue Act of 1938.” refunded to the taxpayer, If claim therefor or refund, authorized by section 821 of is filed within six months after the date the Revenue Act of 1938, of excess inter­ Article 68 is further amended by add­ of the enactment of this Act. No interest est collected on delinquent tax.” ing the following paragraph at the end shall be allowed or paid on any such credit thereof: or refund. The second paragraph of article 65 The date “August 31, 1935”, appear­ is amended by adding at the end thereof “ (c) A credit or refund of the excess ing in the parenthetical exception at the following sentence: of any interest over 6 per centum per the end of each paragraph of article 57, annum accruing between October 24, “A claim for refund or credit of any in­ is changed to “ October 25, 1933.” 1933, and August 30, 1935, on delinquent terest in excess of 6 per cent per annum Immediately preceding article 59 tax, where such excess was collected accruing after October 24, 1933, and be­ there is inserted a quotation of section prior to May 28,1938, is prohibited Unless fore August 30, 1935, on delinquent gift 815 of the Revenue Act of 1938, as fol­ claim therefor is filed within six months lows: taxes, which excess was collected prior to after May 28, 1938.” May 28, 1938, must be filed within six Sec. 815, Revenue Act of 1938. Compro­ months after May 28, 1938, pursuant to Immediately preceding article 71 there mise before suit.— are inserted quotations of sections 801 Section 3229 of the Revised Statutes is the requirement of section 821 of the amended by striking out “with the advice Revenue Act of 1938.” and 802 of the Revenue Act of 1938, as and consent of the Secretary of the Treas­ follows: ury” and inserting in lieu thereof “with the The first paragraph of article 68 is Sec. 801, Revenue Act of 1938. Closing approval of the Secretary of the Treasury, amended by changing the words “Ex­ or of the Under Secretary of the Treasury, agreements as to future tax liability.— or of an Assistant Secretary of the Treas­ cept as provided in (b) of this article” Section 606 (a) of the Revenue Act of 1928 ury.” to “Except as provided in (b) or (c) of Is amended by striking out the words "end­ this article.” ing prior to the date of the agreement.” Immediately preceding article 62 Sec. 802, Revenue Act of 1938. Approval of Paragraph (1) of subdivision (b) of closing agreements.— there are inserted quotations of section article 68, which reads— Section 606 (b) of the Revenue Act of 1928 809 (b) and section 821 of the Revenue is amended by striking out “is approved by Act of 1938, as follows: “ (1) I f the Board finds that the donor the Secretary, or the Under Secretary,” and has overpaid his tax for the year to inserting in lieu thereof the following: "is Sec. 809, Revenue Act of 1938. Overpay­ approved by the Secretary, the Under Secre­ ments found by Board of Tax Appeals. * * * which the notice of deficiency relates, tary, or an Assistant Secretary.” (b) The last sentence of section 528 <<1) and the decision of the Board as to the of the Revenue Act of 1932, as amended, is amount overpaid has become final (see The first three sentences of article 71, amended to read as follows: “No such credit which read— or refund shall be made of any portion of section 1005 of the Revenue Act of 1926), the tax unless the Board determines as and further determines as part of its “Closing agreements provided for in part of its decision that such portion was decision that any portion of the over­ section 606 of the Revenue Act of 1928 paid within three years before the filing of the claim or the filing of the petition; which­ payment was made within three years may relate to any taxable period ending ever is earlier, or that such portion was paid before the filing of the refund claim or prior to the date of the agreement. Such after the mailing of the notice of deficiency: the filing of the petition, whichever is an agreement may be executed even except that where the decision of the Board earlier, the amount of such portion of is rendered before the expiration of thirty though under such agreement the donor days after the date of the enactment of the the overpayment shall be credited or is not liable for any tax for the period. Revenue Act of 1938, the credit or refund refunded. The portion of the overpay- j The matter agreed upon may relate to may be made of any portion paid after the ment made within such period will be mailing of the notice of deficiency.” the total tax liability of the donor or it Sec. 821. Revenue Act of 1938. Interest credited or refunded, even though the may relate to one or more separate items accruing after October 24, 1933, and before Board has not determined as part of its affecting the tax liability of the donor.” August 30, 1935, on delinquent income, es­ decision that the overpayment was so tate, and gift taxes.— made, where a hearing upon the petition are amended to read as follows: Interest accruing after October 24, 1933, and prior to August 30, 1935, on delinquent was held by the Board prior to the ex­ “Closing agreements provided for in income, estate, and gift taxes shall be com­ piration of 30 days after the date of the section 606 of the Revenue Act of 1928, puted at the rate of 6 per centum per annum enactment of the Revenue Act of 1934.” such interest accruing during such pe­ as amended, may relate to the total tax riod which has been collected prior to the is amended to read as follows: liability of the donor, or to one or more aate of the enactment of this Act in excess of separate items affecting such liability.” such rate shall be credited or refunded to “ (1) If the Board finds that the tax the taxpayer, if claim therefor is filed within has been overpaid for the year to which Immediately preceding article 73 there after the date of the enactment is inserted a quotation of section 806 of or this Act. No interest shall be allowed or the notice of the deficiency relates, and paid on any such credit or refund. the decision of the Board as to the the Revenue Act of 1938, as follows: The caption and first paragraph of ar­ amount overpaid has become final (see Sec. 806, Revenue Act of 1938. Administra­ section 1005 of the Revenue Act of 1926), tion of oaths or affirmations.— ticle 62, which read— Any oath or affirmation required or au­ and the Board determines as a part of its thorized by any internal-revenue law or by r t “A . 62. Authority for abatement, decision that any portion of the overpay­ any regulations made under authority there­ credit, and refund of tax.—Authority for ment was made within three years before of may be administered by any person au­ the credit and refund of any overpay­ thorized to administer oaths for general the filing of the claim or the filing of the purposes by the law of the United States, 1792 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 or of any State, Territory, or possession of of the amount determined by the executor or in accordance with section 308 (1), the United States, or of the District of Co­ as the tax would impose undue hardship as amended by section 808 (b) of the lumbia, wherein such oath or affirmation upon the estate, the Commissioner may Is administered. This section shall not be extend the time for payment of any such, Revenue Act of 1932 and section 816 of construed as an exclusive enumeration of part not to exceed ten years from the due the Revenue Act of 1938, the period the persons who may administer such oaths date. In such case the amount in respect within which assessment is required to or affirmations. of which the extension is granted shall be paid on or before the date of the expiration be made is extended by the time covered This Treasury Decision is issued under of the period of the extension, and the run­ by such extension.” authority prescribed by section 530 of ning of the statute of limitations for assess­ ment and collection, as provided in sections Immediately preceding article 82, the the Revenue Act of 1932. 310 (a) and 311 (b), shall be suspended for following is inserted: [ s e a l ] G u y T. H e l v e r in g , the period of any such extension. * * * " Sec. 503. Revenue Act of 1938.— Commissioner of Internal Revenue. Sec. 819 (d ). Revenue Act of 1938.— Section 305 (b) of the Revenue Act of Approved, July 18, 1938. Section 312 (c) of the Revenue Act of 1926, as amended, Is amended to read as 1926 is amended to read as follows: follows: R o s w e l l M a g il l , “ (c) The jeopardy assessment may be "(b) Where the Commissioner finds that Acting Secretary of the made in respect of a deficiency greater or the payment on the due date of any part Treasury. less than that notice of which has been of the amount determined by the executor mailed to the executor, despite the provi­ as the tax would impose undue hardship [F. R. Doc. 38-2076; Filed, July 19,1938; sions of subdivision (f) of section 308 and upon the estate, the Commissioner may ex­ 2:20 p. m.] whether or not the executor has theretofore tend the time for payment of any such filed a petition with the Board of Tax Ap­ part not to exceed ten years from the due peals. The Commissioner may, at any time date. In such case the amount in respect [T .D . 4831] before the decision of the Board is rendered, of which the extension is granted shall be abate such assessment, or any unpaid por­ paid on or before the date of the expiration E state T ax tion thereof, to the extent that he believes of the period of the extension, and the run­ the assessment to be excessive in amount. ning of the statute of limitations for as­ REGULATIONS 80, AMENDED TO ACCORD WITH The Commissioner shall notify the Board of sessment and collection, as provided in sec­ PROVISIONS OP REVENUE ACT OF 1938 the amount of such assessment, or abate­ tions 310 (a) and 311 (b), shall be sus­ ment, if the petition is filed with the Board pended for the period of any such exten­ To Collectors of Internal Revenue and before the making of the assessment or is sion. I f an extension is granted, the Com­ Others Concerned: subsequently filed, and the ¡Board shall have missioner may, if he deems it necessary, Jurisdiction to redetermine the entire require the executor to furnish security for To conform with the provisions, in amount of the deficiency and of all amounts the payment of the amount in respect of so far as they relate to the estate tax, assessed at the same time in connection which the extension is granted in accord­ of Titles n and V of the Revenue Act therewith.” ance with the terms of the extension.” Sec. 816. Revenue Act of 1938.— of 1938, enacted May 28, 1938 (Public, Sec. 819 (e ). Revenue Act of 1938.— The requirement of * * * section 308 No. 554, Seventy-fifth Congress, Chapter Section * * * 312 (f) of the Revenue (i) of the Revenue Act of 1926, of approval 289, third session), Regulations 80 (1937 Act of 1926, * * * [is] amended by in­ by the Secretary of extension of time for serting at the end thereof the following new payment of deficiency in * * * estate edition) ,a approved October 26, 1937, sentence: “If any portion of the jeopardy * * * tax shall not apply after thirty are amended as follows: assessment is abated by the Commissioner days after the date of the enactment of Immediately preceding article 63 the before the decision of the Board is rendered, this Act but the approval shall be by the the bond shall, at the request of the tax­ following is inserted: Commissioner under regulations prescribed payer, be proportionately reduced.” by the Commissioner with the approval of Sec. 501. Revenue Act of 1938.— Sec. 819 ( f ). Revenue Act of 1938.— the Secretary. Section 304 (b) of the Revenue Act of The amendments made by this section 1926, as amended (relating to the amount shall be effective only with respect to jeop­ Article 82 (a) is amended to read as of gross estate requiring the filing of a ardy assessments made after the date of the return), is amended by striking out “$100,- enactment of this Act. follows: 000” and inserting in liieu thereof “the amount of the specific exemption provided The first paragraph of article 77 is “A r t . 82. (a) Extension of time for in section 303 (a) (4) .” amended by adding the following sen­ ;payment of tax shown on return.—In Sec. 502. Revenue Act of 1938.— tence at the end thereof: any case in which the Commissioner Section 403 of the Revenue Act of 1932, as finds that payment, on the due date, of amended, relating to returns of the addi­ “I f the jeopardy assessment is made any part of the tax shown on the re­ tional estate tax, is amended by striking after the date of the enactment of the out “$40,000” and inserting in lieu thereof turn would impose undue hardship upon “the amount of the specific exemption pro­ Revenue Act of 1938, the Commissioner may, at any time before the decision of the estate, he may extend the time for vided in section 401 (c).” payment thereof for a period or periods the Board is rendered, abate the assess­ Immediately preceding articles 76 and not to exceed in all ten years from the 99 the following is inserted: ment or any unpaid portion thereof, to the extent that he believes it to be due date. Sec. 801. Revenue Act of 1938.— excessive in amount.” “The extension will not be granted Section 606 (a) of the Revenue Act of upon a general statement of hardship. 1928 is amended by striking out the words The first sentence of the third para­ “ending prior to the date of the agreement.” The term ‘undue hardship’ means more Sec. 802. Revenue Act of 1938.— graph of article 77 is amended by add­ than an inconvenience to the estate. It Section 606 (b) of the Revenue Act of ing the words “and not abated” after must appear that substantial financial 1928 is amended by striking out “is approved the word “ assessment.” loss, for example, due to the sale of by the Secretary or the Under Secretary,” property at a sacrifice price, will result and inserting in lieu thereof the following: The last sentence of the fourth para­ “is approved by the Secretary, the Under to the estate from making payment of graph of article 77, which reads— Secretary, or an Assistant Secretary.” the tax at the due date. If a market The fifth paragraph of article 76 is “I f an extension of time for payment of exists, a sale of property at the current amended by inserting “or an Assistant the tax is granted in accordance with market price is not ordinarily consid­ Secretary,” after the words “Under Sec­ section 305 (b) or section 308 (i), as ered as resulting in an undue hardship. retary,” and by inserting “as amended,” amended by section 808 of the Revenue “An application for such an exten­ after the comma following the year Act of 1932, the period within which as­ sion must be in writing and must con­ “ 1928.” sessment is required to be made is tain, or be supported by, information Immediately preceding article 77, the extended by the time covered by such under oath showing the undue hard­ following is inserted: extension.” ship that would result to the estate if the requested extension were refused. Sec. 503. Revenue Act of 1938.— is amended to read— Section 305 (b) of the Revenue Act of The application, with the supporting in­ 1926, as amended, is amended to read as “I f an extension of time for payment of formation, must be filed with the col­ follows: the tax is granted in accordance with lector, who will transmit it to the Com­ “(b) Where the Commissioner finds that section 305 (b), as amended by section missioner with his recommendations as the payment on the due date of any part 808 (a) of the Revenue Act of 1932 and to the extension. When it is received 12 F. R. 2324 (2707 D I). section 503 of the Revenue Act of 1938. by the Commissioner, it will be exam- FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1793 ined, and, if possible, within 30 days erty at a sacrifice price, will result to their total par value to the amount of will be denied, granted, or tentatively the estate from making payment of the such bond. (See section 1126 of the granted subject to certain conditions of deficiency at the due date. If a market Revenue Act of 1926, as amended by sec­ which the executor will be notified. The exists, the sale of property at the current tion 7 of the Act of February 4, 1935, Commissioner will not consider an ap­ market price is not ordinarily considered 49 Stat. 20, U. S. C., 1934 edition, Sup. plication for such an extension unless as resulting in an undue hardship. No II, Title 6, section 15.) request therefor is made to the col­ extension will be granted where the de­ “The amount of the deficiency for lector on or before the due date. If the ficiency is due to negligence or inten­ which an extension is granted, with executor desires to obtain an additional tional disregard of the rules and regula­ the additions thereto, shall be paid extension, the request therefor must be tions, or to fraud with intent to evade the on or before the expiration of the period made to the collector on or before the tax. of the extension without the necessity of date of the expiration of the previous “An application for such an extension notice and demand from the collector. extension. No single extension for must be in writing and must contain, or Payment of the amount for which the more than one year will be granted. be supported by, information under oath extension was granted and the additions The granting of an extension of time for showing the undue hardship that would thereto before the expiration of the ex­ paying the tax is discretionary with the result to the estate were the requested tension will not relieve the executor from Commissioner, and such authority will extension refused. The application, with paying the entire amount of interest pro­ be exercised under such conditions as the supporting information, must be filed vided for in the extension. he may deem advisable. with the collector, who will transmit it “The granting of such an extension “If an extension is granted, the Com­ to the Commissioner with his recommen­ will not operate to prevent the running missioner may, if he deems it necessary, dations as to the extension. When it is of interest. (See article 85.) An exten­ require the executor to furnish security received by the Commissioner, it will be sion of time to pay the deficiency may for the payment of the amount in re­ examined, and, if possible, within 30 days extend the period within which taxes spect of which the extension is granted will be denied, granted, or tentatively allowed as a credit by section 301 (c) are in accordance with the terms of the ex­ granted subject to certain conditions of required to be paid and the credit there­ tension. which the executor will be notified. The for claimed. (See article 9 (b ).) The “The amount of the tax for which an Commissioner will not consider an ap­ running of the statute of limitations for extension is granted, with the additions plication for an extension of time for the assessment and collection, as provided in thereto, shall be paid on or before the payment of a deficiency unless request sections 310 (a) and 311 (b ), is suspended expiration of the period of the extension therefor is made to* the collector on or for the period of the extension. (See without the necessity of notice and de­ before the date prescribed for payment articles 77 and 105.)” mand from the collector. Payment of thereof, as shown by the notice and de­ Immediately preceding article 84, the the amount for which the extension was mand from the collector. If the execu­ following is inserted: granted and the additions thereto before tor desires to obtain an additional ex­ the expiration of the extension will not tension, the request therefor must be Sec. 504. Revenue Act of 1938.— relieve the executor from paying the en­ Section 305 (c) of the Revenue Act of 1926, made to the collector on or before the as amended, is amended by inserting at the tire amount of interest provided for in date of the expiration of the previous end thereof the following new sentence: “In the extension. extension. No single extension for more the case of any such extension granted after “The granting of such an extension than one year will be granted. The March 31, 1938, the rate of interest shall be 4 per centum per annum. will not relieve the executor from the granting of an extension of time for pay­ duty of filing the return on or before the ing the deficiency is discretionary, and Sec. 816. Revenue Act of 1938.— The requirement of * * * section 308 date fixed by the regulations, nor will it such authority will be exercised under (i) of the Revenue Act of 1926, of approval operate to prevent the running of inter­ such conditions as may be deemed by the Secretary of extension of time for est. (See article 84.) An extension of advisable. payment of deficiency in * * * estate * * * tax shall not apply after thirty time to pay the tax may extend the pe­ “As a condition to the granting of days after the date of the enactment of riod within which taxes allowed as a such an extension, the Commissioner this Act, but the approval shall be by the credit by section 301 (c) are required to will usually require the executor to fur­ Commissioner under regulations prescribed be paid and the credit therefor claimed. by the Commissioner with the approval of nish a bond in an amount not exceeding the Secretary. (See article 9 (b ).) The running of the double the amount of the deficiency, or Sec. 821. Revenue Act of 1938.— statute of limitations for assessment and to furnish other security satisfactory to Interest accruing after October 24, 1933, collection, as provided in sections 310 (a) the Commissioner for the payment of the and prior to August 30, 1935, on delinquent income, estate, and gift taxes shall be com­ and 311 (b), is suspended for the period liability on or before the date prescribed puted at the rate of 6 per centum per an­ of the extension. (See articles 77 and for payment in the extension, so that num. * * * 105.)” the risk of loss to the Government will The first paragraph of article 84 (a) not be more at the end of the extension Article 83 is amended to read as fol­ is amended by changing the date period than it was at the beginning of lows: “ August 31, 1935” , appearing in the par­ the period. I f a bond is required it enthetical exception at the end thereof, “Art. 83. Extension of time for pay­ shall be conditioned upon the payment to “October 25, 1933”. ment of deficiency tax .—I f it is shown to of the deficiency, interest, and additional The first sentence of the second para­ the satisfaction of the Commissioner that amounts assessed in connection there­ graph of article 84 (a ), which reads— the payment of the deficiency upon the with in accordance with the terms of the date prescribed for the payment thereof extension granted, and shall be executed “If an extension of time has been will result in undue hardship to the by a surety company holding a certifi­ granted for paying any portion of the estate, the Commissioner may grant an cate of authority from the Secretary of tax shown on the executor’s return, in extension of time for the payment of the the Treasury as an acceptable surety on accordance with article 82 (a ), interest deficiency or any part thereof for a period Federal bonds, and shall be subject to accrues thereon at the rate of 6 per cent not to exceed in all four years from the the approval of the Commissioner. In per annum from the expiration of 18 date prescribed for the payment of the lieu of such a bond, the executor may months after the decedent’s death to the deficiency. file a bond secured by the deposit of expiration of the period of the exten­ “The extension will not be granted bonds or notes of the United States, any sion.” upon a general statement of hardship. public debt obligations of the United 17ie term ‘undue hardship’ means more States, or any bonds, notes, or other ob­ is amended to read as follows: than an inconvenience to the estate. It ligations which are unconditionally “If the time for paying any portion must appear that substantial financial guaranteed as to both interest and prin­ of the tax shown on the executor’s re­ loss, for example, due to the sale of prop­ cipal by the United States, equal in turn was extended under the provisions 1794 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 of article 82 (a) and such extension of “Claims made under the provisions of the Revenue Act of 1926 and section 403 time was granted prior to April 1, 1938, section 821 of the Revenue Act of 1938 of the Revenue Act of 1932, as amended. interest accrues on such portion of the for the refund of interest accruing after [ s e a l ] G u y T . H e lv e r in g , tax at the rate of 6 per cent per annum October 24, 1933, and before August 30, Commissioner of Internal Revenue. from the expiration of 18 months after 1935, at a rate in excess of 6 per cent per Approved, July 18, 1938. the decedent’s death to the expiration annum upon delinquent estate taxes and of the period of the extension. If, how­ paid prior to May 28, 1938 (the date of R o s w e l l M a g il l , ever, the extension of time was granted the enactment of the Revenue Act of Acting Secretary of the after March 31, 1938, interest accrues at 1938) must be filed within six months Treasury. the rate of 4 per cent per annum. The after the date of such enactment.” [P. R. Doc. 38-2077; Filed, July 19,1938; lower rate of interest does not apply 2:20 p. m .] retroactively to any period of extension Article 99 is further amended by in­ as may have been granted in the same serting immediately after the clause case prior to April 1, 1938.” “whichever is earlier,” appearing in the TITLE 31—MONEY AND FINANCE: first sentence of the original fourth para­ TREASURY and such paragraph is further amended graph, an additional clause reading— by changing the date “August 31, 1935” , OFFICE OF THE SECRETARY “ or that such portion was paid after the appearing in the parenthetical excep­ mailing of the notice of deficiency,” N e w l y -M in e d D o m e s t ic S ilv e r tion at the end thereof, to “ October 25, J u l y 11, 1938. 1933.” and by substituting for the last sentence The third paragraph of article 84 (a) reading— Memorandum for the President: is amended by inserting “4 or” immedi­ The Newly-Mined Domestic Silver “The portion of the overpayment made Proclamation of December 30, 1937,1 ately after the word “at” in the first within such period will be refunded, even sentence. modifying the Proclamation of December though the Board has not determined as 21, 1933, as modified, provides that: The second, third and fifth para­ part of its decision that the overpayment graphs of article 85 are amended by was so made, if a hearing upon the peti­ “ * * * the said Proclamation of the changing the date “ August 31, 1935” , tion was held by the Board prior to the twenty-first day of December, 1933, as appearing in the parenthetical excep­ expiration of 30 days after the date of heretofore and hereby modified shall re­ tions therein, to “ October 25, 1933” . the enactment of the Revenue Act of main in force and effect until the 31st Immediately preceding article 95 the 1934.” day of December, 1938 unless repealed or following is inserted: further modified by Act of Congress or a new sentence reading as follows: by subsequent Proclamation.” Sec. 819 (e ). Revenue Act of 1938,— Section * * • 312 (f) of the Revenue “The portion of the overpayment, if As you know, in the normal course a Act of 1926, * * * [is] amended by in­ any, made after the mailing of the notice serting at the end thereof the following new considerable period of time elapses be­ sentence: “If any portion of the jeopardy of deficiency will be refunded, even tween the date silver is mined and the assessment is abated by the Commissioner though the Board has not determined as date when the refining of the silver has before the decision of the Board is ren­ part of its decision that the overpayment been completed and the silver is delivered dered, the bond shall, at the «request of the was so made, i f the decision of the Board taxpayer, be proportionately reduced.” to a Mint. Accordingly, a question has Sec. 819 ( f ). Revenue Act of 1938.— is rendered before the expiration of 30 arisen as to whether domestic silver The amendments made by this section days after the date of the enactment of mined prior to midnight, December 31, shall be effective only with respect to jeop­ the Revenue Act of 1938.” 1938, may be received by the mints after ardy assessments made after the date of the enactment of this Act. Article 100 is amended by adding the that date under said Proclamation, as modified. Immediately preceding article 99 the following new sentence at the end thereof: I am advised by the General Counsel following is inserted: of the Treasury that in his opinion the Sec. 809.— “ No interest shall be allowed in respect mints may continue after December 31, * * • * • * of any refund of excess interest claimed 1938, to receive under said Proclamation, and allowed under the provisions of sec­ (e) The last sentence of section 319 (c) as modified, domestic silver mined prior of the Revenue Act of 1926, as amended, is tion 821 of the Revenue Act of 1938.” to midnight, December 31, 1938, and amended to read as follows: "No such re­ otherwise complying with the Proclama­ fund shall be made of any portion of the Immediately preceding article 101 the tax unless the Board determines as part of following is inserted: tion. I am in accord with such opinion. its decision that such portion was paid Accordingly, if you approve, the mints within four years (or, in the case of a tax Sec. 815. Revenue Act of 1938.— will be instructed that they may continue Section 3229 of tbe Revised Statutes is imposed by this title, within three years) after December 31, 1938, to accept under before the filing of the claim or the filing amended by striking out “with the advice of the petition, whichever is earlier, or that and consent of the Secretary of the Treas­ said Proclamation, as modified, newly- such portion was paid after the mailing of ury” and inserting in lieu thereof “with the mined domestic silver mined prior to the notice of deficiency; except that where approval of the Secretary of the Treasury, midnight of December 31, 1938. This the decision of the Board is rendered before or of the Under Secretary of the Treasury, the expiration of thirty days after the date or of an Assistant Secretary of the Treasury”. would be consistent with the action of the enactment of the Revenue Act of taken pursuant to your approval given 1938, the credit or refund may be made of Immediately preceding article 106 the under date of September 14, 1937 when any portion paid after the mailing of the following is inserted: the same problem was presented, the notice of deficiency. Sec. 821. Revenue Act of 1938.— Sec. 806. Revenue Act of 1938.— basic proclamation as then modified be­ Interest accruing after October 24, 1933, Any oath or affirmation required or au­ ing due to expire on December 31, 1937. and prior to August 30, 1935, on delinquent thorized by any internal-revenue law or by I f you approve of the foregoing, I income, estate, and gift taxes shall be com­ any regulations made under authority puted at the rate of 6 per centum per annum. thereof may be administered by any person should appreciate it if you would so indi­ Any such interest accruing during such authorized to administer oaths for general cate below. period which has been collected prior to the purposes by the law of the United States, or [ s e a l ] H. M o r g e n t h a u , Jr. date of the enactment of this Act in excess of any State, Territory, or possession of the of such rate shall be credited or refunded to United States, or of the District of Colum­ Secretary of the Treasury. the taxpayer, if claim therefor is filed within bia, wherein such oath or affirmation is ad­ Approved July 16, 1938. six months after the date of the enactment ministered. This section shall not be con­ F r a n k l in D R o o s e v e lt , of this Act. No interest shall be allowed or strued as an exclusive enumeration of the paid on any such credit or refund. persons who may administer such oaths or The White House. affirmations. Article 99 is amended by inserting im­ [F. R. Doc. 38-2099; Filed, July 20,1938; 12: 42 p. m.] mediately after the third paragraph a This Treasury Decision is issued under new paragraph reading as follows: authority prescribed in section 1101 of l 3 F. R. 29 DI. FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1795

TITLE 43—PUBLIC LANDS T. 9 S., R. 1 E., secs. 1 to 18, inclusive; 1919 (40 Stat. 1179), as amended, such por­ T. 5 S., R. 2 E„ secs. 5 to 9, 16 to 20, and 29 tions of the revested Oregon and California DIVISION OP GRAZING to 32, inclusive; Railroad and reconveyed Coos Bay Wagon T. 6 S., R. 2 E., secs. 5 to 8, 17 to 21, 28 to 33, Road grant lands as are or may hereafter Order Establishing G razing D istrict inclusive; come under the jurisdiction of the Depart­ T. 7 S., R. 2 E., W % . ment of the Interior, which have heretofore No, 3 in the State of A rizona or may hereafter be classified as timberlands, Rules and regulations for the adminis­ and powersite lands valuable for timber, shaU Ju l y 14, 1938. tration of grazing districts issued by the be managed, except as provided in section 3 Under and pursuant to the provisions Secretary of the Interior March 2, 1936, hereof, for permanent forest production, and of the act of June 28,1934 (48 Stat. 1269), the timber thereon shall be sold, cut, and re­ and subsequently amended, shall be effec­ moved in conformity with the principle of as amended by the act of June 26, 1936 tive as to the lands embraced within this sustained yield for the purpose of providing (49 Stat. 1976), and subject to the limi­ district from and after the date of the a permanent source of timber supply, pro­ tecting watersheds, regulating stream-flow, tations and conditions therein contained, ederal publication of this order in the F and contributing to the ecnomlc stability of Arizona Grazing District No. 3 is hereby R egister. local communities and industries, and pro­ established, the exterior boundaries of H arold L. I ckes, viding recreational facilities: Provided, That which shall include the following-de­ Secretary of the Interior. nothing herein shaU be construed to inter­ scribed lands: fere with the use and development of power [F. R. Doc. 38-2082; Filed, July 20, 1938; sites as may be authorized by law. Arizona 9:53 a. m.] The annual productive capacity for such lands shall be determined and declared as Gila and Salt River Meridian promptly as possible after the passage of this T. 1 N„ Rs. 5 to 7 W., Inclusive, all; Act, but until such determination and decla­ Tps. 1 and 2 N., Rs. 8 and 9 W., all; GENERAL LAND OFFICE ration are made the average annual cut T. 3 N., R. 9 W., secs. 4 to 9 and secs. 16 therefrom shall not exceed one-half billion to 36, inclusive; [Order No. 1294] feet board measure: Provided, That timber from said lands in an amount not less than T. 4 N., R. 9 W., secs. 19 to 21 and secs. L eases or U se P ermits for M ining of 28 to 33, inclusive; one-half billion feet board measure, or not Tps. 1 to 3 N., inclusive, R. 10 W., all; P hosphate less than the annual sustained yield capacity T. 4 N., R. 10 W., secs. 4 to 9 and secs. 16 when the same has been determined and de­ u l y to 36, inclusive; J 2, 1938. clared, shall be sold annually, or so much Tps. 1 to 4 N., inclusive, R. 11 W., all; / In the interest of the public pending thereof as can be sold at reasonable prices on T. 5 N., R. 11 W., Sy2; investigation by the Congress pursuant a normal market. Tps. 2 to 4 N., inclusive, R. 12 W., all; If the Secretary of the Interior deter­ T. 5 N., R. 12 W., secs. 20 to 29 and secs. ko the message of the President dated mines that such action will facilitate sus­ 32 to 36, inclusive; [May 20, 1938, and Senate Joint Resolu­ tained-yield management, he may subdi­ Tps. 2 to 4 N., inclusive, R. 13 W., all; tion 298, approved June 16, 1938, of the vide such revested lands into sustained- Tps. 2 and 3 N., R. 14 W., all; adequacy and use of the phosphate re­ yield forest units, the boundary lines of T. 4 N., R. 14 W., that part lying south of which shall be so established that a forest U. S. Highway No. 60; sources of the United States, it is hereby unit will provide, insofar as practicable, a Tps. 1 to 3 N , inclusive, R. 15 W., all; ordered that until further notice no ac­ permanent source of raw materials for the T. 4 N., R. 15 W., that part lying south of tion be taken in the matter of granting support of dependent communities and U. S. Highway No. 60; local industries of the region; but until Tps. 1 to"'3 N., inclusive, R. 16 W., all; leases or use permits for the mining of such subdivision is made the land sba.li be T. 4 N., R. 16 W., that part lying south of phosphate under the act of February treated as a single unit in applying the U. S. Highway No. 60; 25, 1920 (41 Stat. 437). principle of sustained yield: Provided, That Tps. 1 to 3 N., inclusive, Rs. 17 to 19 W., before the boundary lines of such forest inclusive, all; However, in any particularly meritori­ units are established, the Department, after Tps. 1 to 9 S., inclusive, R. 1 W „ all; ous case when, in the judgment of the published notice thereof, shall hold a hear­ T. 1 S., R. 2 W., that part lying south of Secretary of the Interior, the granting ing thereon in the vicinity of such lands the Gila River; of a lease is in the public interest, the open to the attendance of State and local Tps. 2 to 9 S., inclusive, R. 2 W., all; officers, representatives of dependent indus­ T. 1 ^S„ R. 3 W., that part lying south of provisions of this order may be waived. tries, residents, and other persons interested the Gila River; This order has no applicability to out­ in the use of such lands. Due considera­ Tps. 2 to 9 S., inclusive, R. 3 W., all; standing leases. Applications for phos­ tion shall be given to established lumber­ Tps. 10 and 11 S., R. 3 W., all exclusive of phate leases may be filed while this sus­ ing operations in subdividing such lands the Papago Indian Reservation; when necessary to protect the economic sta­ T. 1 S., R. 4 W., that part lying south of pension order is in effect but no rights bility of dependent communities. Timber the Gila River; of any kind are thereby acquired. sales from a forest unit shall be limited to Tps. 2 to 11 S„ inclusive, R. 4 W., all; the productive capacity of such unit and urlew T. 12 S., R. 4 W., aU exclusive of the Papago E. K. B , the Secretary is authorized, in his discre­ Indian Reservation; Acting Secretary of the Interior. tion, to reject any bids which may inter­ Tps. 1 to 4 S., inclusive, R. 5 W., all; fere with the sustained-yield management [F. R. Doc. 36-2083; Filed, July 20,1938; plan of any unit. T. 5 S., R. 5 W., all exclusive of Gila Bend 9:53 a. m.] Indian Reservation; Sec. 2. The Secretary of the Interior is Tps. 6 to 13 S., inclusive, R. 5 W., all; authorized, in his discretion, to make co­ T. 14 S., R. 5 W., secs. 1 to 18, inclusive; operative agreements with other Federal or Tps. 1 to 13 S., inclusive, R. 6 W., all; [Circular 1448] State forest administrative agencies or with T. 14 S., R. 6 W., secs. 1 to 18, inclusive; private forest owners or operators for the Tps. 1 to 13 S., R. 7 W., all; R egulations and Forest P ractice R ules coordinated administration, with respect to T. 14 S., R. 7 W., secs. 1 to 18, inclusive; for the Sale of T imber F rom the R e­ time, rate, method of cutting, and sustained Tps. 1 to 13 S., R. 8 W., all; yield, of forest units comprising parts of T. 14 S., R. 8 W., NV2; vested Oregon and California R ail­ revested or reconveyed lands, together with Tps. 1 to 10 S., and 12 to 17 S., inclusive, road and R econveyed C oos B ay lands in private ownership or under the R. 9 W.; W agon Road G rant L ands Situated in administration of other public agencies, Tps. 1 to 3 S , 6 to 10 S., and 12 to 16 S., the State of O regon when by such agreements he may be aided inclusive, R. 10 W.; in accomplishing the purposes hereinbefore T. 2 S., R. 11 W., ; I. THE ACT OF AUGUST 28, 1937 (50 STAT. mentioned. T. 3 S„ R. 11 W., all; * 874) Sec. 3. The Secretary of the Interior is T. 4 S., R. 11 W., N%; authorized to classify, either on applica­ Tps. 12 to 16 S., R. 11 W., all; Title I of the Act of August 28, 1937, tion or otherwise, and restore to homestead Tps. 12 to 15 S., inclusive, Rs. 12 to 14 W., entry, or purchase under the provisions of inclusive, all; entitled, “An Act Relating to the re­ section 14 of the Act of June 28, 1934 (48 Tps. 1 to 4 S., and 12 to 14 S., inclusive, vested Oregon and California Railroad Stat. 1269), any of such revested or recon­ Rs. 15 and 16 W., all; and reconveyed Coos Bay Wagon Road veyed land which, in his judgment, is more Tps. 1 to 5 S., inclusive, R. 17 W., all; grant lands situated in the State of suitable for agricultural use than for affor­ Tps. 12 to 14 S., inclusive, R. 17 W., E% ; estation, reforestation, stream-flow protec­ Tps. 1 to 5 S., inclusive, R. 18 W., all; Oregon” , provides: tion, recreation, or other public purposes. T. 2 S., R. 19 W., E%; "Be it enacted "by the Senate and House of Any of said lands heretofore classified as T. 3 S., R. 19 W., all; Representatives of the United States of agricultural may be reclassified as timber Tps. 4 and 5 S., R. 19 W., E y2; America in Congress assembled, That not­ lands, if found, upon examination, to be T. 2 S., R. 1 E., secs. 19 to 36, inclusive; withstanding any provisions in the Acts of more suitable for the production of trees Tps. 3 to 8 S., inclusive, R. 1 E.. all; June 9, 1916 (39 Stat. 218), and February 26, than agricultural use, such reclassified tim - No. 141— —3 1796 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 ber lands to be managed for permanent for­ logging in its various forms of tree, group tainable forest cover, to the end that soil est production as herein provided. and area selection. Tree selection will be may be protected from erosion, rainfall Sec. 4. The Secretary of the Interior Is authorized, in his discretion, to lease for required in stands of Ponderosa Pine and stored and its run-off retarded, floods grazing any of said revested or reconveyed other intolerant species, and group and avoided and the landscape kept green and lands which may be so used without inter­ area selections will be favored in Douglas attractive. In furtherance of this policy fering with the production of timber or other purposes of this Act as stated in sec­ Fir and the more tolerant species. There and in order to furnish recreational fa­ tion 1: Provided, That all the moneys re­ are many different ways in which selec­ cilities, scenic strips of merchantable ceived on account of grazing leases shall be tive cutting may be applied and a reason­ timber may be reserved adjacent to public covered either into the ' “Oregon and Cali­ able degree of discretion will be permitted roads, along stream courses and sur­ fornia land-grant fund” or the “Coos Bay Wagon Road grant fund” in the Treasury field officers in the exercise of their judg­ rounding lakes. as the location of the leased lands shall de­ ment in prescribing the method or meth­ When reservations of this character termine, and be subject to distribution as ods to be applied to a given sale unit. are made they shall be of such form and other moneys in such funds: Provided, fur­ ther, That the Secretary is also authorized However, destructive methods which may extent as to minimize the danger of dam­ to formulate rules and regulations for the tend to prevent an early restocking of age due to storms or other natural causes. use, protection, improvement, and rehabili­ the area under development are not au­ They shall be so planned as to avoid un­ tation of such grazing lands. thorized by the Act of August 28, 1937, Sec. 5. The Secretary of the Interior is necessary interference with the normal hereby authorized to perform any and all and will not be permitted. and proper conduct of logging operations acts and to make such rules and regulations Prompt reforestation, following cut­ on adjacent lands. Dead and dying and as may be necessary and proper for the pur­ ting of timber, so that the land may be over-mature trees may be selectively cut pose of carrying the provisions of this Act into full force and effect. The Secretary of kept continuously productive and to the and removed from the reserved stands the Interior is further authorized, in for­ end that the sustained yield of timber where this can be accomplished econom­ mulating forest-practice rules and regula­ products may be maintained at a high ically and without serious damage to rec­ tions, to consult with the Oregon State Board level will be among the principal objec­ reational values. of Forestry, representatives of timber owners and operators on or contiguous to said re­ tives of management. Land shall be classified for agricultural vested and reconveyed lands, and other per­ Short term sales of restricted quan­ use only where conditions indicate the sons or agencies Interested in the use of tities of timber will be favored during probability of a permanent agriculture of such lands. the formulation of the detailed working In formulating regulations for the protec­ better than marginal economy. tion of such thnberlands against fire, the plan, the division of the area into sus­ Grazing under regulation is authorized Secretary is authorized, in his discretion, to tained yield forest units, and the de­ where it will not interfere with the at­ consult and advise with Federal, State, and velopment of cooperative agreements tainment of the principal goal of forest county agencies engaged in forest-fire-pro­ tection work, and to make agreements with with operators, private timber owners management, namely, a high sustained such agencies for the cooperative adminis­ and State and Federal agencies. Dur­ yield of commercial timber from all areas tration of fire regulations therein: Provided, ing this period the quantities of timber classified as permanent forest land. That rules and regulations for the protec­ offered for sale will be sufficient to sup­ tion of the revested lands from fire shall con­ m . REGULATIONS GOVERNING THE SALE OP form with the requirements and practices of ply the normal needs of industry and the State of Oregon insofar as the same are to keep labor employed. Consideration TIMBER consistent with the interests of the United will be given to the requirements of States.” 1. Applications for the purchase of established operations to avoid unneces­ tim b er.—Applications for the purchase U . POLICY STATEMENT sary interference with their normal of timber from the revested Oregon and The Act of August 28, 1937 (50 Stat. plans of development. However, con­ California Railroad and reconveyed 874), is a measure providing for the con­ tracts extending over periods of more Coos Bay Wagon Road grant lands under servation of land, water, forest and for­ than three years will not ordinarily be authority of the Act of August 28, 1937, age on a permanent basis, the prudent approved prior to the placing of the area should be made in writing to the th ief utilization of these resources for the pur­ under a permanent plan of management. Forester, O. & C. Lands at Portland, poses to which they are best adapted, The property as a whole will ulti­ Oregon, on forms provided therefor. and the realization of the highest cur­ mately be subdivided into local sustained Upon the receipt of applications for pur­ rent income consistent with undiminished yield units, after making a careful study chase the Chief Forester will conduct future returns. Title I of the Act seeks of the economic factors which must be an investigation of the timber applied through application of the principles of weighed before the definite establish­ for and if the sale as proposed meets sustained yield management to provide ment of such units and after consulta­ with the requirements of the Act of perpetual forests which will serve as a tion with the local and State interests August 28, 1937, that officer will author­ secure foundation for continuing indus­ which are involved. The allocation of ize the advertisement of the timber or try and permanent communities. The timber to particular units will be car­ recommend such advertisement to the Act also provides for the flow of a full ried out as fairly and equitably as pos­ Commissioner of the General Land Of­ measure of the benefits produced by a sible, giving full consideration to exist­ fice or the Secretary of the Interior, well managed forest to the people of the ing operations and the policy of sta­ as provided in these regulations. Offer­ region in which the revested Oregon and bilizing and perpetuating substantial de­ ings of timber for sale may also be made California Railroad and reconveyed Coos pendent communities. Cutting will be from time to time without the receipt Bay Wagon Road grant lands are situ­ encouraged in and directed toward ma­ of application when in the judgment of ated. ture and over-mature Douglas Fir the department such action is necessary Proceeding in accordance with the re­ stands and will be discouraged in young to effective management. quirements of the Act, it will be the pol­ thrifty types that show a high current 2. Qualifications of purchasers: Limi­ icy of the Department of the Interior to increment. tations on sales.—No sale will be made restrict the cutting of timber on the re­ The Act refers to certain secondary for less than the appraised price and vested Oregon and California Railroad benefits of the forest which are to be the right to purchase at any sale will and reconveyed Coos Bay Wagon Road conserved by the new plan of manage­ be limited, in accordance with law, to grant lands to a total volume of 500,000,- ment. It requires that the management citizens of the United States, associa­ 000 feet B. M. per annum pending an in­ practices employed shall provide agri­ tions of such citizens, and corporations tensive examination of the property, the cultural opportunities, recreational fa ­ organized under the laws of the United determination of the productive capacity cilities, water-shed protection, and States, or any State, Territory, or dis­ of the land, and the formulation of a de­ stream-flow regulation. trict thereof. Native bom citizens will tailed forest working plan. It will fur­ In compliance with this mandate, all be required to file an affidavit to that ther be the policy of the Department to lands classified for continuous timber effect in connection with the first pur­ direct such cutting under rules of forest production shall be so managed as to chase, and naturalized citizens will be re­ practice providing for partial or selective maintain or restore on them the best ob­ quired to furnish either the original cer- FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1797 tificate of naturalization or duly certified ing $100,000. Every deposit must be cer. A copy of such contract, together or attested copy thereof, which copy, if made in cash or in the form of a duly with a complete report covering the es­ of a certificate of naturalization issued certified check on a solvent national sential facts in connection therewith, after September 26, 1906, must be on the bank, drawn payable to the order of the should be submitted to the Commis­ form prescribed by the Bureau of Natu­ Chief Forester of the O. & C. Lands. sioner of the General Land Office for ralization. Corporations will be required Deposits with bids are required as a examination and filing. In contracts to furnish either the original certificate guarantee of good faith, and when a requiring the approval of the Commis­ of incorporation, or a duly certified or bond is not executed the deposit of the sioner of the General Land Office or the attested copy thereof. A corporation successful bidder will be retained until Secretary of the Interior, the Chief For­ organized outside of the State of Oregon the contract is completed. In the final ester, O. & C. Lands, will sign as the must also show by a certificate by a settlement the deposit will be credited as party of the first part, and all copies proper State official that it has been au­ a portion of the whole amount due for thereof, together with a report and a thorized to do business within the State the timber purchased and any balance recommendation, will be submitted to of Oregon. returned, provided the Purchaser has the approving officer for final action. 3. Examination and report.—Before faithfully performed the terms of the 9. Bonds.—In sales of timber in which any timber is advertised or sold it shall contract. If a bond is furnished and ac­ the value of the stumpage does not ex­ be examined and appraised by the Chief cepted, the deposit will be credited as a ceed $5,000 the initial deposit may be Forester or his representative, and a first installment in the payment for the retained as a cash bond until the con­ complete report covering the sale area timber. Checks of unsuccessful bidders tract is completed. In sales of timber filed with the officer who is to approve will be returned upon the award of the in which the stumpage value exceeds the sale. The report should consist of bid. $5,000 but is not over $10,000 a bond of a description of the area, an estimate of 6. Acceptance and rejection of bids.— approximately 20 per cent of the value the volume to be removed, an appraisal Under ordinary circumstances the high of the timber will be required. In sales of the value of the timber by species, the bid received in connection with any ad­ of timber in which the stumpage value plan of development best adapted to the vertisement issued under authority of exceeds $10,000 but is not over $100,000 area, the cost of development, the invest­ these regulations will be accepted. How­ a bond in an amount of approximately ment required, and the market value of ever, the officer authorized to approve 10 per cent of the estimated value of the products manufactured from the the contract shall have the right to reject the timber will be required and in sales timber. the high bid and re-advertise if he con­ in which the stumpage value exceeds The report should also include details siders the high bidder to be unqualified $100,000 a bond will be required in an with respect to the silvicultural practice to fulfill the contractual requirements amount to be fixed by the Secretary of to be followed, plans for brush disposal, of the advertisement. The right is also the Interior. Ordinarily corporate fire protection and any special consid­ reserved to reject any bid which may in­ surety bonds will be required. How­ erations which should be incorporated in terfere with the sustained yield manage­ ever, if personal sureties are furnished the contract in protection of the interest ment plan of any sustained yield unit. in lieu thereof, such sureties will be ac­ of the United States. The report should 7. Financial position of purchasers.— cepted and the bond approved only upon be accompanied by a copy of the form of In all sales in excess of $5,000, and in a clear showing by the principals and advertisement to be used, a copy of the smaller sales when necessary, the success­ the bondsmen that they are fully capa­ proposed contract and bond, and a map ful bidder will be required, prior to the ble of carrying out the terms of the of the sale area. award of the timber, to submit a com­ agreement. 4. Advertisement of sales.—All sales of plete financial statement of his ability to 10. Approval of contracts and timber of a stumpage value in excess of fulfill the terms of the contract. Addi­ bonds.—Contracts covering sales of $100 shall be made only after due adver­ tional information with respect to the timber having a stumpage value of $25,- tisement and under sealed bids, and each ability of the bidder to perform the con­ 000 or less may be approved by the advertisement must be approved by the tract, inclusive of data covering plant Chief Forester’ O. & C. Lands. Con­ officer who will approve the contract. If and equipment, etc., may be required be­ tracts covering sales of timber having a the stumpage value of the timber offered fore the award of the bid, in the discre­ stumpage value between $25,000 and does not exceed $2,000, the advertisement tion of the officer approving the contract. $50,000 will be approved by the Commis­ may be made in a newspaper or by 8. C ontracts.—Every timber sale con­ sioner of the General Land Office. Con­ posters and circular letters. If the tract shall be a clear statement of the tracts covering sales in which the stumpage value exceeds $2,000 the ad­ obligations of the purchaser and of the stumpage value exceeds $50,000 shall be vertisement must be made in at least one Government. As a matter of convenience made only with the express approval of newspaper of general circulation in the a standard form of timber contract has the Secretary of the Interior. Bonds locality where the timber is situated. been provided and all sales of timber guaranteeing the faithful performance For sales in which the stumpage value having a stumpage value in excess of of contracts shall be approved by the of the timber does not exceed $10,000 $100 will be consummated through the officer approving the contracts. the advertisement shall be for not less use of the standard form, unless a special 11. Payments for timber.—Payments than two weeks; for sales exceeding form for a particular sale is approved for timber shall be required in advance $10,000 but not over $100,000 not less by the Secretary of the Interior. The of cutting, either as a single payment or than four weeks, and for all sales exceed­ standard form provides for a reasonable in the form of installments. In sales ing $100,000 not less than eight weeks. degree of flexibility to meet variable con­ having a stumpage value of not more 5. Deposits with bids.—Cash deposits ditions and no essential departure from than $1,000 payment will ordinarily be shall be submitted with each proposal the fundamental requirements thereof required in full before cutting is started. for the purchase of timber from the re­ may be authorized, except with the ap­ In sales of timber having a stumpage vested Oregon and California Railroad proval of the Secretary. The Forest value of $1,000 to $5,000 payment shall and reconveyed Coos Bay Wagon Road Practice Rules which have been incor­ be made in installments of not less than grant lands. Such deposits shall be at porated in and made a part of these reg­ $1,000 each; in sales of from $5,000 to least 20 per cent of any estimated stump­ ulations shall be attached to and made $25,000 in installments of not less than age value which is less than $1,000; at a part of each timber sale contract. $2,500 each; and in sales of from $25,- least 10 per cent of any estimated All contracts should be executed in 000 to $100,000 in installments of not stumpage value between $1,000 and quadruplicate by the parties in interest. less than $5,000 each; provided that the $10,000; at least 5 per cent of any esti­ In connection with contracts approved last installment on any sale may be in mated stumpage value between $10,000 by the Chief Forester, O. & C. Lands, an amount equal to the balance due and and $100,000; and at least 3 per cent that officer will sign as both party of payable thereon. In sales in which the of any estimated stumpage value exceed­ the first part and as the approving offi­ stumpage value is in excess of $100,000 1798 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 the amount o f the installments shall be practicable of application this method The term "officer in charge” when­ determined at the time such sales are may be used since it insures a higher ever used in these stipulations signifies authorized; provided that the amount so degree of accuracy than does cruising or the forest officer of highest rank as­ fixed shall not be less than $5,000 for the tree measurement method. The signed to the administration of timber each installment. Scribner Decimal C log rule shall be used sales within the District in which the 12. Time for cutting and removal of on all sales where the logs are scaled sale is located, or such other officer as tim b er.—The maximum periods which after the timber is cut, and this rule shall may be designated by the Chief Forester shall be allowed for the cutting and re­ be the basis of volume determination in to supervise the sale. moval of timber after the date the con­ cruising or tree measurement. Foresters, logging engineers, log scal­ tract has been approved shall be as fol­ 16. Records and reports.—A complete ers and other officers authorized to ad­ lows: For sales having a stumpage value record of timber sale activities shall be minister timber sales will be appointed of from $1,000 to $5,000, two years; for maintained in the Office of the Chief by the Secretary of the Interior and sales of timber having a stumpage value Forester, O. & C. Lands at Portland, Ore­ receive their instructions from the of $5,000 to $10,000, three years; for sales gon, and that officer shall make monthly Chief Forester or the officer in charge. over $10,000 but not exceeding $25,000, and annual reports to the Commissioner 19. Basis of sale.—Timber shall be five years; and for sales exceeding of the General Land Office concerning all sold on the basis of cruise, tree scale or $25,000 the number of years to be fixed details of administration. log scale, and no timber except that by the Commissioner of the General Land The field record of timber sales shall necessary for improvements or that Office or the Secretary of the Interior at consist of scale books, scale reports and which interferes with the economical the time such sales are authorized. a register of scale reports showing the conduct of a logging enterprise shall be 13. Reappraisals.—Timber sale con­ volume scaled or measured on each sale cut unless it has been marked or desig­ tracts of more than five years’ duration unit, the payments received therefor and nated in advance by the officer in will provide for the redetermination of the disposition of the moneys so received. charge. Where volumes are determined stumpage prices after reappraisal at Progress reports of the timber scaled on the basis of a scale of the standing stipulated intervals. Ordinarily reap­ or measured in each unit under develop­ trees, such volumes shall be checked for praisals will be made and new rates es­ ment should be mailed each month to the accuracy by a periodic scaling of the tablished by the Secretary every three Commissioner of the General Land Office, logs on sample areas. The purchaser years subsequent to the year in which together with a summary of all sales and shall be permitted to witness such check cutting operations are initiated. Special an analysis of the cost of administration. scaling. Where the volume is deter­ contract forms similar to the standard At the close of the fiscal year a detailed mined by log measurement the Scribner form but inclusive of a reappraisal clause annual report must be rendered to the Decimal C log rule will be used in scal­ will be formulated and approved by the Commissioner by the Chief Forester, O. & ing the logs. Secretary for all sales of more than five C. Lands. This report should include a 20. Deposits.—Cash deposits in ad­ years’ duration. summary of the business conducted dur­ vance of cutting will be required as 14. Timber cutting permits.—All tim­ ing the year, an analysis of the cost of stipulated in the contract. The title to ber cutting which is not done under for­ administration, a detailed budget set-up standing timber or forest products cov­ mal contract may be authorized on the of administrative requirements and a ered by the contract will not pass to standard permit form. The permit form complete statement of the progress the purchaser until such timber or prod­ has been devised as a convenience in achieved in connection with the formu­ ucts are paid for. If at any time the meeting the requirements of homestead­ lation of a permanent forest working stumpage value of the timber cut and ers, ranchers and local persons for limited plan for the property. unpaid for shall approach or equal the quantities of timber for domestic, agri­ 17. Acquisition of rights of way.—The total amount then on deposit, an addi­ cultural and grazing purposes. It should procedure governing the filing of appli­ tional advance deposit shall be required. not be used as a substitute for the regu­ cations and the granting of rights of way 21. Logging areas designated by.—The lar contract form. The maximum value over public domain land under the vari­ priority of areas to be logged, when eco­ of the stumpage which may be cut under ous rights of way acts will be followed nomically feasible, may be designated permit in one year by any individual shall with respect to rights of way over the by the officer in charge if such action is not exceed $100. Permits for the cutting revested and reconveyed lands; provided, necessary to prevent deterioration from of dead and down timber or for stand a sum sufficient to cover the estimated fire, insects or disease, and to fully pro­ improvement may be issued by O. & C. damage shall be deposited with the Chief tect the interests of the United States. officers without charge. However, a rea­ Forester prior to construction, and pro­ 22. Selective logging.—The logging of sonable charge should be made for such vided further, that suitable stipulations areas in such manner as to preserve a merchantable timber as may be author­ will be required in connection with the part of the merchantable timber, pro­ ized for cutting under permit. granting of all rights of way for the pro­ mote the growth of young trees, or pre­ 15. Measurement of products.—All liv­ tection of the various conservation meas­ serve the forest cover, shall be prac­ ing timber cut under authority of the ures contemplated by law. ticed on all lands chiefly valuable for the standard form of contract or permit pro­ production of timber. The general plan vided for herein shall be marked or other­ IV. FOREST PRACTICE RULES AND GENERAL of selective logging to be followed may wise designated by an authorized forest CONTRACT STIPULATIONS take any of the various forms of tree se­ officer of the General Land Office. Tim­ The following forest practice rules and lection, group selection or area selection, ber shall be paid for on the basis of the general contract stipulations are hereby or combinations thereof, which in the cruised volume which, in group and area prescribed for use in all contracts for the judgment of the Chief Forester will as­ selection, will be determined in the ac­ sale of timber from, revested Oregon and sure the successful conservation and cepted commercial manner, and in tree California Railroad and reconveyed Coos protection of the resources under devel­ selection, will be determined by individual Bay Wagon Road grant lands situated in opment. tree scale. the State of Oregon, except as special 23. Reservations for public purposes.— In view of the scattered location of a provision shall be made by the Secretary In the discretion of the officer in charge, large part of the revested Oregon and of the Interior with respect to particular a strip of suitable width on each side California Railroad and reconveyed Coos sales. of lakes, streams, roads, and trails and Bay Wagon Road grant lands the deter­ 18. Definitions.—The word “Chief For­ in the vicinity of camping places and mination of volume by cruising or tree ester” as used in these forest practice recreation grounds may be reserved, in measurement will be more or less gener­ rules and contract stipulations signifies which little or no cutting will be allowed. ally applied. the Chief Forester, O. & C. Lands. His In carrying out the selective cutting On comparatively large timber sales office and principal place of business shall in these areas all reasonable care shall when the regular method of log scaling is be in the City of Portland, Oregon. be taken to avoid injury to the remain- FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1799 ing standing timber. Within these re­ subcontractors or employees are directly bridges, sluices, and dams may be con­ served areas trees shall be felled in such or indirectly responsible for the origin or structed and maintained by the Pur­ manner as to leave the right of way, spread of the fire. chaser on and across the contracted streams and lake shores free from slash 27. Sales— R igh ts o f way.— Other sales area, subject to regulation by the Com­ deposits. within a sale area may be made of prod­ missioner of the General Land Office. 24. Protection of young growth.—The ucts and kinds of timber not sold under 36. Existing Improvements: Improve­ young growth shall be protected as fully a previous sale, provided such sales will ments already on the area which are as possible in every branch of the log­ not, in the judgment of the officer hav­ necessary for logging purposes may be ging operations and its use in the con­ ing authority to make such sale, inter­ used by the Purchaser, subject to regu­ struction of improvements may be re­ fere with the operations of the previous lation by the Commissioner of the Gen­ stricted by the officer in charge. purchaser. The previous purchaser shall eral Land Office. 25. F ire code.— Section 5 of the Act of not be held liable for any damage by 37. Time for removal of improve­ August 28, 1937, provides in part, “ That fire or other causes for which such addi­ ments.—The time limit for the removal rules and regulations for the protection tional purchasers are directly or indi­ of the improvements and other property of the revested lands from fire shall con­ rectly responsible. Rights of way may of the Purchaser is one year after the form with the requirements and practices be granted through portions of the sale expiration of the contract. After that of the State of Oregon insofar as the area during the contract period, pro­ time the title to improvements, includ­ same are consistent with the interests of vided they do not interfere with the ing camps, will attach to the land, and the United States” , and proceeding in operations of the previous purchaser. no personal property of the purchaser accordance therewith, contractors will be 28. Firew ood—Improvements.—As far will thereafter be removed except with required to comply with applicable pro­ as possible only unmerchantable timber the written consent of the officer in visions of the State fire code, as well as other than young growth shall be used charge: Provided, That improvements the following: for firewood and improvements, and necessary for the logging of other O. & C. material so used will not be charged to (a) The slash resulting from logging timber may be left for such time and on the Purchaser. Wood and improvements operations shall be burned only under such terms as may be prescribed by the taken from merchantable material will written permit from the Chief Forester Commissioner of the General Land be scaled or measured, charged, and acting in cooperation with the State Office. paid for at its appraised value. Forester. In the Douglas fir type on 38. Extension of time.—Extension of 29. Stumps.— Stumps will be cut low areas logged in the group or area selec­ time for the performance of any con­ so as to avoid unnecessary waste. tion manner the burning of slash, where tract may be granted the Purchaser by 30. Waste.—Unnecessary waste of required, shall be carried out in accord­ the officer approving the contract, in merchantable timber not previously paid his discretion and subject to such condi­ ance with the best and safest practices for in high stumps, butts, tops, breaks, recognized in the “Forest Practice Hand­ tions as he may impose. skids, and partially sound logs and all 39. Extension of time denied.—I f ex­ book” of the Pacific Northwest Loggers trees designated for logging which are and the West Coast Lumbermen’s Asso­ tension of time to cut and remove the not logged and all trees which are left ciations. Adequate special protection timber is not granted by the officer ap­ felled or lodged or badly damaged by the proving a contract, the Purchaser shall shall be given to all reserved timber. logging operations will be scaled for Proper fire trails shall be constructed as not cut timber after the expiration of their merchantable contents and the contract, but he may remove the required by the Chief Forester where charged against the Purchaser. necessary in advance of slash burning to timber previously cut and paid for, with­ 31. Carelessness — Breakage. — Care­ in one year of the expiration of the protect green timber areas, islands of lessness on the part of fellers or other immature timber and previously logged contract. I f not removed within the employees of the Purchaser that results time allowed, the title will revert to the areas that have been cleared of slash. in unnecessary breaking of trees not Where the tree selection method of log­ United States notwithstanding the Pur­ previously cruised or scaled will be pe­ chaser may have paid for the timber. ging is used special methods economi­ nalized by scaling such trees full as if cally possible shall be worked out by the 40. Assignments by purchaser.—As­ they had not been broken. signment of any contract in whole or Chief Forester in cooperation with the 32. Sanitation.—The vicinity of log­ State Forester and the purchaser. In in part by the Purchaser will not re­ ging camps and stables will be kept in a lieve him of his contract obligations un­ the Ponderosa pine type slash disposal clean and sanitary condition, and rub­ shall be carried out in accordance with less the assignment is approved by the bish will be removed and properly officer approving the contract and the the Rules of Forest Practice (Oregon) of burned or buried during the occupancy the Western Pine Association. Special bond is satisfactorily renewed. and upon the removal of the camps and 41. Records—Reports.— The Purchas­ provisions may be developed by the Chief stables. Forester in cooperation with the State er shall furnish the Chief Forester an­ 33. Pollution: Obstruction of Streams: Forester and the purchaser. nually on forms provided therefor, a Streams shall not be obstructed by felled (b) Smoking and lunch fires shall be report of the amount of lumber sold and trees or otherwise, nor shall they be pol­ restricted during periods of fire hazard the average grade prices received f. o. b. luted by sawdust, manure, or any other and shall be permitted only in especially the mill during the preceding year; the prepared places. refuse from a camp or mill. amount of ties and timber sold, with 34. Utility Facilities: Existing tele­ (c) The contractor shall be required average price per M; and the amount of to stop logging operations in especially phone lines, fences, roads, trails, and by-products sold and the total receipts hazardous fire weather upon request other improvements shall be protected for the same, and such other informa­ from the Chief Forester. as far as possible in the logging opera­ tion as may be requested. These re­ tions, and whenever they are broken or ports will be regarded as confidential. 26. Responsibility for damage.—The obstructed the Purchaser shall promptly 42. Suspension of Operations — contractor shall be held accountable for repair the damage. I f he fails to make W hen.—Suspension of the Purchaser’s any damage to virgin timber, reserve the repairs promptly, the officer in operations may be made by the Chief stands or young growth, occurring as a charge may make the repairs and pur­ Forester after due notice if any require­ result of slash burning or other fires chasers may be charged with double ments of the contract and of these stip­ originating on the sale area or adjacent the expense thereof. ulations are disregarded and until there lands and shall be required to pay for 35. Necessary Improvements: Improve­ is satisfactory compliance. Failure to such damage on the basis of an ap­ ments necessary to execute his con­ comply with any one of the require­ praisal to be conducted by the Chief tracts, such as camps, sawmills, rail­ ments of the contract after written no­ Forester; provided the Purchaser, his roads, roads, telephone lines, chutes, tice addressed to the Purchaser by the 1800 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 officer in charge will be ground for rev­ 437), under the amendment thereof as to DEPARTMENT OF COMMERCE. ocation by the officer approving the con­ sodium dated December 11, 1928 (45 tract of all rights of the Purchaser un­ Stat. 1019), under the potash leasing act Bureau of Marine Inspection and Navigation. der this and other contracts, and the of February 7, 1927 (44 Stat. 1057), or forfeiture of his bond and of all moneys under the sulphur leasing act of April N o t ic e o f M e e t in g o f E x e c u t iv e C o m ­ paid, and the Purchaser will be liable 17, 1926 (44 Stat. 301), shall be applied m it t e e , B oard o f S u p e r v is in g I n s p e c ­ for all damage resulting from his breach as earned by the Register immediately tors of contract. upon receipt of notice from the General Ju l y 18,1938. 43. Appeal.—An appeal as provided by Land Office that the application has been Pursuant to authority conferred by the Rules of Practice of the Department adjudicated and the lands found subject Secttion 4405, R. S., I hereby call a meet­ of the Interior may be taken to the Com­ to lease, permit or other right. Pending ing of the Executive Committee of the missioner of the General Land Office and such notification, or notice of the final Board of Supervising Inspectors of the Secretary of the Interior from the final disposition of an application, the Register Bureau of Marine Inspection and Navi­ decision of the Chief Forester or his staff. will hold the fee as “deposits, unearned gation, consisting of Commander R. S. 44. Bond unsatisfactory. — Whenever proceeds, lands, etc.” Field, Director; Captain George Fried, any bond furnished to guarantee obliga­ Fees paid in connection with applica­ Supervising Inspector, Second District; tions under a sale shall be unsatisfactory tions for coal leases, permits or licenses and Captain Chester W. Willett, Super­ to the officer approving the sale he may which are rejected will not be returned vising Inspector, Sixth District; to take require a new bond which shall be satis­ in any event unless and until author­ place in the office of the Director, Bu­ factory to him. ized by the General Land Office upon reau of Marine Inspection and Naviga­ 45. D efault.—Wilful failure of the pur­ receipt of a report from the Division of tion, Department of Commerce, Wash­ chaser to complete his contract or to log Investigations, or the applicant has fur­ ington, D. C., beginning at 10: 00 A. M. as promptly as economically possible an nished an affidavit stating that he has Tuesday, July 26, 1938, for the purpose area damaged by fire, wind, insects, or not mined any coal from the land em­ of considering amendments to the Rules other causes, or the commission by him braced in the rejected application for and Regulations and for the transaction of any act for which the officer approv­ which payment has not been made. of such other business as may come be­ ing his contract shall declare the contract 2. Regulations superseded. — These fore the meeting. forfeited, will render the Purchaser and regulations supersede the regulations his bondsmen liable for the depreciation contained in Circular No. 1383,1 ap­ [ s e a l ] J. M. J o h n s o n , in the value of the remaining timber on proved April 14, 1936 (55 I. D. 483), Acting Secretary of Commerce. an estimate of value and quantity to be effective August 1, 1938. [F. R. Doc. 38-2100; Piled, July 20, 1938; made under the direction of the officer F red W. J o h n s o n , 12: 48 p. m.] approving this contract. Commissioner. 46. Persons Excluded.—No member of Approved, July 13, 1938. or delegate to Congress shall be admitted to any share, part, or interest in any H arold L . I c k e s , FEDERAL TRADE COMMISSION. contract, or to any benefit derived Secretary of the Interior. therefrom (see Secs. 114 and 116, Act of [P. R. Doc. 38-2084; Piled, July 20,1938; United States of America—Before March 4, 1909, entitled “An Act to 9:53 a. m.] Federal Trade Commission codify, revise and amend the penal laws At a regular session of the Federal of the United States,” 35 Stats. L., 1088, Trade Commission, held at its office in 1109), and no person undergoing a sen­ N o tic e s the City of Washington, D. C., on the tence of imprisonment at hard labor 14th day of July, A. D. 1938. shall be employed in carrying out any Commissioners: Garland S. Ferguson, contract (see Executive Order of May DEPARTMENT OF AGRICULTURE. Chairman; Charles H. March, Ewin L. 18, 1905). Farm Security Administration. Davis, William A. Ayres, Robert E. Freer. 47. Form s.—Forms for application, D e s ig n a t io n o f C o u n t ie s fo r T e n a n t [Docket No. 3062] bid, contract, and bond heretofore ap­ P ur c h a se L o a n s proved by the Secretary of the Interior I n t h e M atter o f J. P alazzo lo will be made available through the Com­ WISCONSIN ORDER APPOINTING EXAMINER AND FIXING missioner of the General Land Office. J u l y 19, 1938. TIME AND PLACE FOR TAKING TESTIMONY 48. These regulations shall be effective Pursuant to the provisions of Title I and operative sixty days from the date of the Bankhead-Jones Farm Tenant This matter being at issue and ready of approval. Act, and Section H 3 of Administration for the taking of testimony, and pur­ F red W. J o h n s o n , Order 230 of the Farm Security Admin­ suant to authority vested in the Federal Commissioner. istration, issued thereunder, and upon Trade Commission!, under an Act of Approved, July 7, 1938. the basis of the recommendations of Congress (38 Stat. 717; 15 U. S. C. A., Section 41), H arold L . I c k e s , the Wisconsin State Farm Security Ad­ That John J. Keenan, Secretary of the Interior. visory Committee, the following counties It is ordered, are hereby designated as those in which an examiner of this Commission, be and [P. R. Doc. 38-2081; Plied, July 20,1938, loans, pursuant to said Title, may be he hereby is designated and appointed 9:52 a. m.] made under the provisions of said Order to take testimony and receive evidence for the fiscal year ending June 30, 1939: in this proceeding and to perform all (1) those counties which were desig­ other duties authorized by law; [Circular 1383a] nated for the making of loans for the It is further ordered, That the taking fiscal year ending June 30, 1938;2 and of testimony in this proceeding begin on D is p o s it io n o p F il in g F ees A c c o m p a n y ­ (2) the following additional counties: Friday, August 12, 1938, at nine o’clock in g A pplications for L eases, P e r m it s Burnett, Monroe, and Waushara. in the forenoon of that day (eastern a n d O th e r R ig h t s U nd er t h e M in e r a l standard time) in Room 304, 45 Broad­ L e a sin g A cts [ s e a l ] * M. L. W i l s o n , Acting Secretary of Agriculture. way, New York, New York. 1. When filing fees will he applied as Upon completion of testimony for the earned or returned to applicant.—Fees [F.R.DOC. 38-2078; Piled, July 20,1938; Federal Trade Commission, the exam­ 9:32 a.m .] paid with applications for leases, permits iner is directed to proceed immediately or other rights under the mineral leas­ 11 F. R. 224. to take testimony and evidence on be­ ing act of February 25, 1920 (41 Stat. a 8 F. R. 110 D L half of the respondent. The examiner FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1801 will then close the case and make his to authority vested in the Federal Trade United States of America—Before report upon the evidence. Commission, under an Act of Congress Federal Trade Commission By the Commission. (38 Stat. 717; 15 U. S. C. A., Section 41). It is ordered, That John J. Keenan, At a regular session of the Federal [ s e a l ] O t is B. J o h n s o n , Trade Commission, held at its office in Secretary. an examiner of this Commission, be and he hereby is designated and appointed the City of Washington, D. C., on the [P. R. Doc. 38-2088; Piled, July 20,1938; 15th day of July, A. D. 1938. 10:13 a. m.] to take testimony and receive evidence in this proceeding and to perform all Commissioners: Garland S. Ferguson, other duties authorized by law; Chairman; Charles H. March, Ewin L. Davis, William A. Ayres, Robert E. United States of America—Before It is further ordered, That the taking of testimony in this proceeding begin on Freer. Federal Trade Commission [Docket No. 3410] Monday, August 8, 1938, at nine o’clock At a regular session of the Federal in the forenoon of that day (eastern I n t h e M atter o f R. F r a n k Y a n c e y , Trade Commission, held at its office in standard time) in Room 304, 45 Broad­ T rad ing as t h e M o n a r c h C h in a C o m p a n y the City of Washington, D. C., on the way, New York, New York. 14th day of July, A. D. 1938. ORDER APPOINTING EXAMINER AND FIXING Upon completion of testimony for the TIME AND PLACE FOR TAKING TESTIMONY. Commissioners: Garland S, Ferguson, Federal Trade Commission, the examiner Chairman; Charles H. March, Ewin L. is directed to proceed immediately to This matter being at issue and ready Davis, William A. Ayres, Robert E. Freer. take testimony and evidence on behalf for the taking of testimony, and pursuant [Docket No. 3364] of the respondent. The examiner will to authority vested in the Federal Trade Commission, under an Act of Congress I n t h e M atter o f G im b e l B r o th er s, I n c ., then close the case and make his report (38 Stat. 717; 15 U. S. C. A., Section 41), a C o r po r a t io n , an d M o rris K a p l a n & upon the evidence. It is ordered, That Edward E. Reardon, S o n , I n c ., a C o r po r a t io n By the Commission. an examiner of this Commission, be and [ s e a l ] O t is B. J o h n s o n , ORDER APPOINTING EXAMINER AND FIXING he hereby is designated and appointed Secretary. TIME AND PLACE FOR TAKING TESTIMONY to take testimony and receive evidence This matter being at issue and ready [F. R. Doc. 38-2090; Piled, July 20, 1938; in this proceeding and to perform all for the taking of testimony, and pur­ 10:13 a. m.] other duties authorized by law; suant to authority vested in the Federal It is further ordered, That the taking Trade Commission, under an Act of Con­ of testimony in this proceeding begin on gress (38 Stat. 717; 15 U. S. C. A., Sec­ United States of America—Before Thursday, July 28, 1938, at ten o’clock tion 41), Federal Trade Commission in the forenoon of that day (eastern It is ordered, That John J. Keenan, At a regular session of the Federal standard time) in the Federal Building, an examiner of this Commission, be and Trade Commission, held at its office in Third Floor, Greensboro, North Carolina. he hereby is designated and appointed the City of Washington, D. C., on the Upon completion of testimony for the to take testimony and receive evidence 15th day of July, A. D. 1938. Federal Trade Commission, the examiner in this proceeding and to perform all Commissioners: Garland S. Ferguson, is directed to proceed immediately to take other duties authorized by law; Chairman; Charles H. March, Ewin L. testimony and evidence on behalf of the It is further ordered, That the taking Davis, William A. Ayres, Robert E. Freer. respondent. The examiner will then close the case and make his report upon of testimony in this proceeding begin on [Docket No. 3369] Monday, August 1, 1938, at nine o’clock the evidence. in the forenoon of that day (eastern I n t h e M atter o f A m e r ic a n M e m o r ial By the Commission. standard time) in Room 304, 45 Broad­ C o m p a n y [ s e a l ] O t is B. J o h n s o n , way, New York, New York. ORDER APPOINTING EXAMINER AND FIXING Secretary. Upon completion of testimony for the TIME AND PLACE FOR TAKING TESTIMONY [P. R. Doc. 38J-2092; Piled, July 20, 1938; Federal Trade Commission, the examiner 10:14 a. m.] is directed to proceed immediately to This matter being at issue and ready take testimony and evidence on behalf for the taking of testimony, and pur­ of the respondent. The examiner will suant to authority vested in the Federal then close the case and make his report Trade Commission, under an Act of United States of America—Before upon the evidence. Congress (38 Stat. 717; 15 U. S. C. A., Federal Trade Commission By the Commission. Section 41), At a regular session of the Federal It is ordered, That Edward E. Reardon, [ s e a l] O t is B. J o h n s o n , Trade Commission, held at its office in an examiner of this Commission, be and Secretary. the City of Washington, D. C., on the he hereby is designated and appointed [P. R. Doc. 38-2089; Piled, July 20,1938; 15th day of July, A. D. 1938. 10: 13 a. m.] to take testimony and receive evidence Commissioners: Garland S. Ferguson, in this proceeding and to perform all Chairman; Charles H. March, Ewin L. other duties authorized by law; Davis, William A. Ayres, Robert E. Freer. It is further ordered, That the taking United States of America—Before of testimony in this proceeding begin on [Docket No. 3450] Federal Trade Commission Thursday, August 25, 1938, at ten o’clock I n t h e M atter o f J o s ia h L. J o n e s At a regular session of the Federal in the forenoon of that day (eastern ORDER APPOINTING EXAMINER AND FIXING Trade Commission, held at its office in standard time), in Room 324, Old Post TIME AND PLACE FOR TAKING TESTIMONY the City of Washington, D. C., on the Office Building, Atlanta, Georgia. 14th day of July, A. D. 1938. Upon completion of testimony for the This matter being at issue and ready Commissioners: Garland S. Ferguson, Federal Trade Commission, the exam­ for the taking of testimony, and pur­ Chairman; Charles H. March, Ewin L. iner is directed to proceed immediately suant to authority vested in the Federal Davis, William A. Ayres, Robert E. Freer. to take testimony and evidence on be­ Trade Commission, under an Act of Con­ [Docket No. 3367] half of the respondent. The examiner gress (38 Stat. 717; 15 U. S. C. A., Sec­ will then close the case and make his tion 41), I n t h e M atter o f S ales o n S o u n d C o r­ report upon the evidence. p o r a t io n , a C o r po r a tio n It is ordered, That Edward E. Reardon, By the Commission. an examiner of this Commission, be and ORDER APPOINTING EXAMINER AND FIXING [ s e a l ] O t is B. J o h n s o n , he hereby is designated and appointed TIME AND PLACE FOR TAKING TESTIMONY Secretary. to take testimony and receive evidence This matter being at issue and ready [F. R. Doc. 38-2091; Piled, July 20,1938; in this proceeding and to perform all for the taking of testimony, and pursuant 10:13 a. m.] other duties authorized by law; 1802 FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938

It is further ordered, That the taking its office in Washington, D. C., on the Year 5% Debentures, Series A, due May of testimony in this proceeding begin on 18th day of July, A. D. 1938. 1, 1942; $5 Cumulative Preferred Stock, Tuesday, August 2, 1938, at ten o’clock It appearing that income statements $100 par value; and Common Stock, $5 in the forenoon of that day (eastern of Class I common carriers of property par value; and standard time), in Room 310, Federal by motor vehicle (carriers which have That said Continental Securities Cor­ Building, Jacksonville, Florida. gross revenues of $100,000.00 or over an­ poration registered such securities on Upon completion of testimony for the nually from both intrastate and inter­ the Boston Stock Exchange, a national Federal Trade Commission, the examiner state motor carrier operations), which securities exchange, by filing on or is directed to proceed immediately to take are made respondents in this proceed­ about August 6, 1935, an; application testimony and evidence on behalf of the ing,1 are desirable to aid the Commis­ signed for the company by Mr. W. Gen- respondent. The examiner will then sion in the determination of the above- genbach, Assistant Vice President, with close the case and make his report upon entitled matter: the said Exchange and with the Com­ the evidence. It is ordered, That each Class I com­ mission pursuant to Section 12 (b) of By the Commission. mon carrier of property by motor vehicle the Securities Exchange Act of 1934, as [ s e a l ] O t is B . J o h n s o n , which is a respondent in this proceed­ amended, and pursuant to Rule JB1, as Secretary. ing submit to the Commission at its amended, promulgated by the Commis­ offices in Washington, D. C., on or be­ sion thereunder; and fP. R. Doc. 38-2093; Filed, July 20,1938; fore August 15, 1938, income statements 10:14 a.m .] That pursuant to Sections 13 (a) and for the year 1937 and for the six months (b) of said Securities Exchange Act of ended June 30, 1938, or for the first six 1934, as amended, and Rules KA1 and United States of America—Before periods in 1938 instead of the six months KA2, promulgated by the Commission Federal Trade Commission ended June 30, 1938, in the case of those thereunder, said Continental Securities carriers which keep their accounts on a Corporation filed on or about April 29, At a regular session of the Federal four-week period basis; Trade Commission, held at its office in 1936, and on or about April 26, 1937, its It is further ordered, That said in­ annual reports on Form 15-K for the the City of Washington, D. C., on the come statements shall be submitted un­ 15th day of July, A. D. 1938. respective fiscal years ended December der oath on the form herewith enclosed 31, 1935, and December 31, 1936, both Commissioners: Garland S. Ferguson, which form is hereby made a part of Chairman; Charles H. March, Ewin L. being signed by Mr. B. A. Cushman, this order;2 Secretary; and Davis, William A. Ayres, Robert E. Freer. And it is further ordered, That any That Rule KA1, promulgated pursu­ respondent in this proceeding receiving [Docket No. 3455] ant to Section 13 (a) of said Securities this order, which respondent is not a I n t h e M atter o f M o n t ic e l l o D rug Exchange Act of 1934, as amended, did Class I carrier, as above defined, shall C o m p a n y and does require that an annual report return the blank form of income state­ for each issuer of a security registered order a p p o in t in g e x a m in e r and f ix in g ment to the Commission at its offices in on a national securities exchange shall TIME AND PLACE FOR TAKING TESTIMONY Washington, D. C., on or before August be filed on the appropriate form pre­ 15, 1938, accompanied by a statement This matter being at issue and ready scribed therefor; and for the taking of testimony, and pur­ that this order is not applicable to its suant to authority vested in the Federal operations. That Rule KA2 promulgated pursuant Trade Commission, under an Act of By the Commission, division 5. to Section 13 (b) of said Securities Ex­ Congress (38 Stat. 717; 15 U. S. C. A., change Act of 1934, as amended, did and [ s e a l ] W. P. B artel, does prescribe Form 15-K as the annual Section 41), Secretary. report form to be used for the annual That Edward E. Rear­ It is ordered, [P. R. Doc. 38-2095; PUed, July 20, 1938; don, an examiner of this Commission, reports of corporations engaged either 12:17 p. m.] directly or through subsidiaries pri­ be and he hereby is designated and ap­ marily in the business of investing and pointed to take testimony and receive reinvesting or trading in securities for evidence in this proceeding and to per­ SECURITIES AND EXCHANGE the purpose of revenue and for profit; form all other duties authorized by law; COMMISSION and It is further ordered, That the taking of testimony in this proceeding begin on United States of America—Before the n Monday, August 1, 1938, at ten o’clock Securities and Exchange Commission in the forenoon of that day (eastern The Commission having reason to At a regular session of the Securities believe: standard time), in Room 310, Federal and Exchange Commission held at its Building, Jacksonville, Florida. office in the City of Washington, D. C. That Continental Securities Corpora­ Upon completion of testimony for the on the 19th day of July, A. D. 1938. tion has failed to comply with Sections Federal Trade Commission, the exam­ [Pile No. 1-1999] 13 (a) and (b) and the Rules and Regu­ iner is directed to proceed immediately lations promulgated thereunder in that to take testimony and evidence on be­ In the M atter of Continental Securi­ it has failed to file the information and half of the respondent. The examiner ties Corporation 15-Year 5% D eben­ documents required by Rule KA1, will then close the case and make his tures, Series A, D ue M ay 1, 1942; $5 adopted by the Commission pursuant report upon the evidence. Cumulative P referred Stock, $100 to Section 13 (a) and has failed to file By the Commission. P ar V alue; and Common Stock, $5 its annual report for the year ended [ s e a l ] O t is B. J o h n s o n , P ar V alue December 31, 1937, on Form 15-K, as Secretary. ORDER FOR HEARING required by Rule KA2 adopted by the Commission pursuant to said Section [F. R. Doc. 38-2094; PUed, July 20,1938; I 10:14 a. m.] 13 (b) ; and It appearing to the Commission: m That Continental Securities Corpora­ INTERSTATE COMMERCE COMMIS­ tion, a corporation, is the issuer of 15- The Commission being of the opinion SION. that pursuant to Section 19 (a) (2) of [Ex Parte No. MC 24] 13 P. R. 1762 DI. said Securities Exchange Act of 1934, as 3 Filed as a part of the original document amended, a hearing should be held to C a l if o r n ia M otor C arrier R ates with the Division of the Federal Register, determine whether said Continental Se­ The National Archives; requests for copies At a session of the Interstate Com­ should he addressed to the Interstate Com­ curities Corporation has so failed to merce Commission, Division 5, held at merce Commission. comply with said provisions of said FEDERAL REGISTER, T h u rsd a y , J u ly 21, 1938 1803

Sections 13 (a) and (b) and said Rules 5 with respect to the solicitation of as­ [Pile No. 52-9] and Regulations promulgated by the sents to such plan, and (c) a declaration I n t h e M atter o p U t il it ie s P o w e r & Commission thereunder, or with any pursuant to Section 7 of said Act with L ig h t C o r po r a tio n provision of said sections, or of any respect to the issues and sales and NOTICE OF AND ORDER FOR HEARING rule or regulation promulgated by the changes in rights called for by such plan. Commission under said sections, and if A hearing with respect to the foregoing An application pursuant to section 11 so, whether it is necessary or appro­ was held and continued subject to call.1 (f) of the Public Utility Holding Com­ priate for the protection of investors to Subsequently said corporation amended pany Act of 1935, having been duly filed suspend for a period not exceeding 12 the application and declarations so as to with this Commission by Atlas Corpora­ months or to withdraw the registration cause the same to relate, in the event tion, a Delaware corporation; of said 15-Year 5% Debentures, Series the Commission shall determine not to It is ordered, That a hearing on such A, due May 1, 1942; $5 Cumulative Pre­ permit such Section 7 declaration, as matter be held on August 8, 1938, at ten ferred Stock, $100 par value; and Com­ previously filed and amended, to become o’clock in the forenoon of that day, at the mon Stock, $5 par value on said Boston effective, to a new and different plan. Securities and Exchange Building, 1778 Stock Exchange; Such new and different plan provides for Pennsylvania Avenue, NW., Washington, D. C. On such day the hearing-room It is ordered, That a public hearing be reducing, by a proceeding under Section held for such purpose before the officer 28 of the General Corporation Law of clerk in Room 1102 will advise as to the of the Commission herein designated be­ Delaware, said corporation’s stated capi­ room where such hearing will be held. ginning on the 27th day of July, 1938, at tal from $31,356,373.25 to $13,500,000. At such hearing, if in respect of any 10:00 A. M. in Room 1103 at the office Such reduction of capital is to be effected declaration, cause shall be shown why of the Securities and Exchange Com­ by reducing the stated values of the such declaration shall become effective. mission, 1778 Pennsylvania Avenue, several classes of stock, all of which are It is further ordered, That Edward C. N. W., Washington, D. C., and to con­ without par value. Johnson, or any other officer or officers of the Commission designated by it for tinue thereafter at such times and places It is ordered, That the before men­ that purpose shall preside at the hearings as said officer may determine; and tioned hearing in this matter be recon­ in such matter. The officer so designated It is further ordered, That for the pur­ vened on August 5, 1938, at ten o’clock to preside at any such hearing is hereby pose of such proceeding, Robert P. in the forenoon of that day, at the Se­ authorized to exercise all powers granted Reeder, an officer of the Commission, curities and Exchange Building, 1778 to the Commission under section 18 (c) be and he hereby is designated to admin­ Pennsylvania Avenue, NW., Washing­ of said Act and to continue or postpone ister oaths and affirmations, subpoena ton, D. C. On such day the hearing- said hearing from time to time or to a witnesses, compel their attendance, take room clerk in Room 1102 will advise as date thereafter to be fixed by such pre­ testimony, and require the production of to the room where such hearing will be siding officer. any books, papers, correspondence, held. A t such hearing evidence may be Notice of such hearing is hereby given memoranda or other records deemed offered with respect to either or both to such declarant or applicant and to of said plans of reorganization and with relevant or material to the inquiry, and any other person whose participation in respect to said application and declara­ to perform all other duties in connection such proceeding may be in the public tions as now or hereafter amended. therewith authorized by law. interest or for the protection of investors By direction of the Commission. It is further ordered, That at such or consumers. It is requested that any hearing cause be shown why the before- person desiring to be heard or to be [ s e a l ] F r a n c is P . B rassor, mentioned declarations shall become Secretary. admitted as a party to such proceeding effective. shall file a notice to that effect with [P. R. Doc. 38-2103; Piled, July 20, 1938; Notice of such reconvening of such 12:59 p.m .] the Commission on or before August 3, hearing is hereby given to Federal Water 1938. Service Corporation and all others who The matter concerned herewith is in have appeared in this proceeding and to regard to a plan of reorganization of any other person whose participation in Utilities Power & Light Corporation United States of America—Before the this proceeding may be in the public which this application asks this Com­ Securities and Exchange Commission interest or for the protection of investors mission to approve prior to submission or consumers. It is requested that any At a regular session of the Securities of such plan to the District Court of the person desiring to be heard or to be United States for the Northern District and Exchange Commission held at its admitted as a party to this proceeding of Illinois, Eastern Division, in proceed­ office in the City of Washington, D. C., shall file a notice to that effect with the ings therein pending for the reorganiza­ on the 19th day of July, A. D. 1938. Commission on or before July 30, 1938. tion of said Utilities Power & Light Cor­ [File Nos. 34r-9; 43-88] By the Commission. poration under Section 77B of the Bank­

[ s e a l ] F r a n c is P . B rassor, ruptcy Act. Said plan is in amendment I n t h e M atter o p F ederal W ater S ervice Secretary. to and as a substitute for a certain C o r po r a tio n Amended Plan of Reorganization of said [P. R. Doc. 38-2102; Filed, July 20,1938; Utilities Power & Light Corporation, NOTICE OP AND ORDER FOR RECONVENING 12:59 p.m .] dated October 23, 1937 for approval of HEARING which an application (File No. 52-5) Federal Water Service Corporation, a was heretofore filed by said Atlas Cor­ registered holding company, desiring to poration and Paul V. Shields, Joseph S. propose to its stockholders a voluntary United States of America—Before the Maxwell and Charlton B. Hibbard as a plan of reorganization, heretofore filed Securities and Exchange Commission Protective Committee for Preferred with this Commission, (a) an application Stockholders of said Utilities Power & and two amendments thereto pursuant to At a regular session of the Securities Light Corporation. Section 11 (g) of the Public Utility Hold­ and Exchange Commission held at its By the Commission. office in the City of Washington, D. C., ing Company Act of 1935 for a report by [ s e a l ] F r a n c is P. B rassor, the Commission upon such plan, (b) a on the 19th day of July, A. D. 1938. Secretary. declaration and two amendments thereto [P. R. Doc. 38-2101; Filed, July 20.1938; pursuant to the Commission’s Rule 12E- 12 F. R. 2464 (2864 D I ) . 12:59 p. m ] No. 141------4