Washington, Thursday, January 19, 1956 TITLE 7— AGRICULTURE
VOLUME 21 ^ NUMBER 12
Washington, Thursday, January 19, 1956
TITLE 7— AGRICULTURE GENERAL CONTENTS § 945.100 Communications. Unless Agricultural Marketing Service Fase Chapter IX— Agricultural Marketing otherwise provided in the marketing Service (Marketing Agreements and Proposed rule making: agreement and order, or by specific di Barley; official grain standards Orders), Department of Agriculture rection of the committee, all reports, of the United States______368 applications, submittals, requests, and Part 945—T omatoes Grown in F lorida Milk: communications in connection with the Austin-Waco, Texas, market SAFEGUARDS AND EXEMPTION PROCEDURES marketing agreement and' order shall ing area______371 be addressed to the Florida Tomato Central West Texas market Notice of proposed rule making regard Committee at its principal office. ing rules and regulations for the estab ing area______« 371 lishment of safeguards and exemption DEFINITIONS Rules and regulations: procedures, to be made effective under § 945.110 Order. “Order” means Tomatoes grown in Florida__ _ 353 Marketing Agreement No. 125 and Order Order No. 45 (§§ 945.1 to 945.92; 20 F. R. Agriculture Department No. 45 (7 CFR Part 945; 20 F. R. 7357), 7357) regulating the handling of toma See Agricultural Marketing Serv regulating the handling of to/natoes toes grown in Florida. ice; Rural Electrification Ad grown in Florida, was published in the ministration. Federal Register (December 9, 1955; 20 § 945.111 M arketing agreement. F. R. 9162). This regulatory program is “Marketing Agreement” means Market Atomic Energy Commission effective under the Agricultural Market ing Agreement No. 125. Rules and regulations: ing Agreement Act of 1937, as amended § 945.112 Terms. Terms used in this Licensing of production and uti- (48 Stat. 31, as amended; 7 ü. S. C. 601 subpart shall have the same meaning as , lization facilties______355 et seq.; 68 Stat. 906, 1047).. After con when used in the marketing agreement Customs Bureau sideration of all relevant matters pre and order. sented, including the proposals set forth Notices: in the aforesaid notice which were § 945.113 Registered handler. For Self-winding watch movements; adopted and submitted for approval by purposes of this part, a registered han tariff classification______400 the Florida Tomato Committee, estab dler is a person who has adequate facili Federal Communications Com lished pursuant to the aforesaid market ties for grading tomatoes for market and mission ing agreement and order, the following who assumes initial responsibility for Notices: rules and regulations are hereby ap compliance with inspection, assessment, Hearings, etc.: proved: and other regulatory requirements on Albuquerque Broadcasting Co. GENERAL (KOB)______409 Sec. the handling of tomatoes grown in the production area. Any person who Anna Broadcasting Co_____ 407 945.100 Communications. wishes to become a registered handler Franklin County Broadcasting DEFINITIONS shall make application for registration Co. (WYES)______407 945.110 Order. with the committee on forms prescribed H illtop Broadcasting Co. 945.111 Marketing Agreement. by and available at the principal office (WTVH)______406 945.112 Terms. of the committee. If such applicant has New England Telephone and 945.113 Registered handler. facilities which are determined by the Telegraph Co______406 committee as adequate for grading North Central Broadcasting SAFEGUARDS tomatoes, he may be approved as a Co. and Munising-Alger 945.120 Application for Certificate of Privi- registered handler. Persons who make Broadcasting Co______406 lege. deliveries of ungraded tomatoes to such Oregon Radio, Inc. (KSLM- 945.121 Issuance. TV)______408 945.122 Reports. registered handlers are hereby deter 945.123 Denial and appeal. mined to be exempt from otherwise ap Proposed rule making: plicable regulations pursuant to this Television broadcast stations; EXEMPTION PROCEDURES part. tables of assignments, rules 945.130 Application. SAFEGUARDS (2 documents)______371,375 Investigations. Rules and regulations: 945.132 Issuance. § 945.120 Application for Certificate Radio services; public safety, 945.133 Disposition of certificates. of Privilege, (a) Whenever handling is industrial, land transporta 945.134 Reports. regulated pursuant to § 945.53, each tion; amendments______361 945.135 Appeals. handler desiring to make shipments of Springfield-Holyoke, Mass; tel tomatoes for any of the following pur ATmmnrr. §§945.100 to 945.135 Issued evision broadcast stations; fler sec. 5, 49 Stat. 753, as amended; 7 poses shall, prior thereto, apply to the table of assignments, amend u- S. c. 608c. (Continued on next page) ment______360 353 354 RULES AND REGULATIONS CONTENTS— Continued committee for and obtain a Certificate of' Privilege permitting such shipment: Land Management Bureau— Page (1) For relief or charity; or (2) For canning. FEDERALffiREGISTER Continued «34 ¿fi (b) Applications for Certificates of Notices—Continued Privilege shall be made on forms fur Revested Oregon and California nished by the committee. Each appli Published daily, except Sundays, Mondays, railroad lands; opening of— 403 and days following official Federal holidays, cation shall contain the name and ad by the Federal Register Division, National Public Housing Administration dress of the handler, and such other Archives and Records Service, General Serv Rules and regulations: information as such committee may re ices Administration, pursuant to the au Low-rent housing and slum quire, such as, but not limited, to the thority contained in the Federal Register Act, clearance program; resettle quantity (by grade, size, quality, and approved July 26, 1935 (49 Stat. 500, as ment program; revocation—« 360 variety) of tomatoes to be shipped, the amended; 44 U. S. C., ch. 8B), under regula Reclamation Bureau mode of transportation, consignee, desti tions prescribed by the Administrative Com nation, and other appropriate informa mittee of the Federal Register, approved by Notices: the President. Distribution is made only by Minidoka Project, Idaho; order tion or documents necessary to safe the Superintendent of Documents, Govern of revocation______—— 404 guard against the entry of such toma ment Printing Office, Washington 25, D. C. toes into trade channels other than The F e d e r a l R e g i s t e r will be furnished by Rural Electrification Adminis those for which the Certificate of mail to subscribers, free of postage, for $1.50 tration Privilege is granted. per month or $15.00 per year, payable in Notices: advance. The charge for individual copies Loan announcements (28 docu § 945.121 Issuance. The committee, (minimum 15 cents) varies in proportion to ments)______410-413 or its duly authorized agents, shall give the size of the issue. Remit check or money prompt consideration to each applica order, made payable to the Superintendent Securities and Exchange Com tion for a Certificate of Privilege and of Documents, directly to the Government shall determine whether the application Printing Office, Washington 25, D. C. mission The regulatory material appearing herein Notices: is approved. Approval of an application is keyed to the C o d e o f F e d e r a l R e g u l a t i o n s , U-H Uranium Corp.; hearing— 410 shall be evidenced by the issuance of a which is published, under 50 titles, pursuant Certificate of Privilege authorizing the Treasury Department applicant named therein to ship toma to section 11 of the Federal Register Act, as See also Customs Bureau; Internal amended August 5, 1953.' The C o d e o f F e d toes for a specified purpose for a specified e r a l R e g u l a t i o n s is sold by the Superin Revenue Service. period of time. tendent of Documents. Prices of books and Notices: pocket supplements vary. Peerless Insurance Co.; surety § 945.122 Reports. Each handler There are no restrictions on the re corporations acceptable on handling tomatoes under and pursuant publication of material appearing in the Federal bonds______401 to a Certificate of Privilege shall supply F e d e r a l R e g i s t e r , or the C o d e o f F e d e r a l the committee with a report thereon R e g u l a t i o n s . Wage and Hour Division within the time specified on the applica Notices: tion for such, certificate showing the Learner employment certifi name and address of the shipper, car or CONTENTS— Continued cates; issuance to various in truck identification, loading point, des dustries ______404 tination, consignee, and, when inspec Federal Power Commission Page Puerto Rico; Industry Commit tion is required, the Federal-State Notices: tees ; appointments, hearings- 405 Inspection Certificate number. Hearings, etc.: Delta Gulf Drilling Co______409 CODIFICATION GUIDE § 945.123 Denial and appeal. The committee may rescind a Certificate of Texas Co. et al______409 A numerical list of the parts of the Code Texas Eastern Transmission of Federal Regulations affected by documents Privilege issued to a handler, or deny a Corp. et al______409 published in this issue. Proposed rules, as Certificate of Privilege to a handler, Housing and Home Finance opposed to final actions, are identified as upon proof satisfactory to such com such. mittee, that such handler has shipped Agency tomatoes contrary to the provisions of See Public Housing Administra Title 7 Pae® this part. Such committee action deny tion. Chapter I: ing a Certificate of Privilege shall apply 'Interior Department Part 26 (proposed) ______368 to and not exceed a reasonable period of See Land Management Bureau; Chapter IX: time as determined by such committee. Reclamation Bureau. Part 945______353 Any handler who has been denied a Cer Part 952 (proposed)______371 tificate of Privilege, or who has had a Internal Revenue Service Part 982 (proposed)______371 Proposed rule making: Certificate of Privilege rescinded, may Alcohol, tobacco, and other ex Title 10 appeal to the committee for reconsider cise taxes ; warehousing of Chapter I: ation. Such appeal shall be in writing. distilled spirits______399 Part 50______355 EXEMPTION PROCEDURES Income tax; taxable years be Title 24 § 945.130 Application. Any person ginning after Dec. 31, 1953; Chapter III: applying for exemption from regulations insurance (2 documents)_ 375, 388 Part 320______360 issued pursuant to § 945.52 shall file sucn Interstate Commerce Commis Part 330______360 application with the committee, or its sion Title 26 (1954) duly authorized agent for such purpose, Notices : Chapter I: on forms to be furnished by such com Fourth section applications for Part 1 (proposed) (2 docu mittee. Each application shall state tne relief______- 413 ments) ______375, 388 name and address of the applicant, tne Rules and regulations: Part 225 (proposed)______399 grade, size, and quality regulations from Shippers; explosives and other Title 47 which exemption is requested; and facts dangerous articles______363 Chapter I: demonstrating that the tomatoes, io Labor Department which exemption is requested, were ad Part 3______360 versely affected by acts beyond his con See Wage and Hour Division. Proposed rules (2 docu trol or by acts beyond the applicant Land Management Bureau ments)______371,375 reasonable expectation. Each appnca- Notices: Part 10______361 tion for an exemption certificate mu Proposed withdrawal and reser Part 11______361 be accompanied by a Federal-State in vation of lands: Part 16______361 spection Certificate covering the specifl Arizona (9 documents)___ 401,402 Title 49 quantity of tomatoes for which exen??g Oregon.l______403 Chapter I : tion is requested: Provided, That tn Washington______403 Part 73______363 committee may authorize the submissio V Thursday, January 19, 1956 FEDERAL REGISTER 355 ords. Each such certificate shall contain Sec. of such Federal-State Inspection Cer 50.22 Class 103 licenses; for commercial tificate subsequent to the filing of the the name and address of the recipient, and industrial facilties. application for exemption and prior to the location of all tomatoes authorized 50.23 Construction permits. consideration of such application. Ap to be shipped thereunder, the quantity plications shall set forth such additional (by grade, size, quality and variety) APPLICATIONS FOR LICENSES, FORM, CONTENTS, information as the committee may find of tomatoes which will be permitted in INELIGIBILITY OF CERTAIN APPLICANTS necessary in making determinations the exempted shipments and such other 50.30 Applications for licenses, oath or af with respect thereto, including, without information as may be deemed necessary firmation. by the committee to provide such com 50.31 Combining applications. limitation thereto, the information 50.32 Elimination of repetition. required on producers’ applications by mittee, the recipient, or both, with ade 50.33 Contents of applications; general in paragraphs (a) and (b) of this section. quate and specific information regard formation. (a) The location of the farm on which ing such exempted tomatoes. 50.34 Contents of applications; technical tomatoes for which exemption is re information hazards summary re quested were produced, the location § 945.133 Disposition of certificates. port. where such tomatoes are to be prepared Each lot of tomatoes handled under an 50.35 Extended time for providing tech for market, and the loading point from exemption certificate shall be accompa nical information, nied by such certificate, or such appro 50.36 -Designation of technical specifica which such tomatoes are to be shipped priate identifying information with re tions. if exemption is granted; spect to such certificate, as the committee 50.37 Agreement limiting access to Re (b) Acreage and quantity (by grade, may require, to facilitate the adminis stricted Data. size, quality, and variety) of tomatoes 50.38 Ineligibility of certain applicants. harvested prior to the date of application tration of regulatory provisions applica 50.39 Public inspection of applications. ble thereto. and to be harvested, subsequent to such STANDARDS FOR LICENSES AND CONSTRUCTION date, during the remainder of the season § 945.134 Reports. Persons handling PERMITS or specific portion thereof (as may be tomatoes under exemption certificates 50.40 Common standards. determined pursuant to this part) ; the shall, at such time as may be specified in 50.41 Additional standards for class 104 quantity (by grade, size, quality, and such certificates, report thereon to the licenses. variety) of tomatoes disposed of prior to committee the names and addresses of 50.42 Additional standards for class 103 the date of application and to be dis the receivers of such tomatoes, the quan licenses. posed of subsequent to such date; the tity shipped (by grade, size, quality, and 50.43 Additional standards and provisions location of the tomatoes to be disposed variety), the inspection certificates is affecting class 103 licenses for com of, together with the place where such sued with respect thereto, the dates of mercial power. tomatoes will be handled; an estimate of 50.44 Standards for licenses authorizing such shipments, and such other informa export only. the portion of such tomatoes which can tion as may be requested by such Com 50.45 Standards for construction permits. be handled under regulation issued pur mittee in order to administer the regula suant to § 945.52, during the remainder tory provisions applicable thereto. ISSUANCE, LIMITATIONS, AND CONDITIONS OF of the season; and the reasons why all LICENSES AND CONSTRUCTION PERMITS of such tomatoes cannot be handled § 945.135 Appeals. If any applicant 50.50 Issuance of licenses and construc under such regulations. is dissatisfied with the determination of tion permits. the committee regarding an application 50.51 Duration of license, renewal. § 945.131 Investigations. The com for an exemption certificate, or any duly 50.52 Combining licenses. mittee may authorize investigations of issued exemption certificate an appeal by 50.53 Jurisdictional limitations. applications by its employees, Federal- such applicant may be taken to such 50.54 Conditions of licenses. State inspectors, and such other persons committee in accordance with § 945.74. 50.55 Conditions of construction permits. as may be necessary to procure adequate 50.56 Conversion of construction permit to information to pass upon the merits of Done at Washington, D. C., this 16th license; or amendment of license. such applications. day of January 1956, to become effective ALLOCATION OF SPECIAL NUCLEAR MATERIAL 30 days after publication in the F ederal §945.132 Issuance, (a) The commit R egister. 50.60 Allocation of special nuclear mate tee, or its duly authorized agents, shall rial. [seal] R oy W. Lennartson, give prompt consideration to all state INSPECTIONS, RECORDS, REPORTS Deputy Administrator. ments and facts relating to each appli 50.70 Inspections. cation for exemption, and, pursuant to [F. R. Doc. 56-436; Filed, Jan. 18r 1956; 50.71 Maintenance of records, making of applicable provisions of this part, a de 8:53 a.m.] reports. termination shall be made as to whether TRANSFER OF LICENSES-CREDITORS’ RIGHTS; or not the application is approved. The SURRENDER OF LICENSES determination, if approving the applica TITLE 10—ATOMIC ENERGY tion, shall be evidenced by the issuance f § § 50.80 to 50.89 reserved] of a certificate of exemption pursuant Chapter I— Atomic Energy AMENDMENT OF LICENSE OB CONSTRUCTION to §945.71: Provided, That more than Commission PERMIT AT REQUEST OF HOLDER one certificate may be issued, at the re Part 50—Licensing of P roduction and 50.90 Application for amendment of li quest of an applicant, where the appli U tilization F acilities cense or construction permit. cant ships or causes to be shipped the 50.91 Issuance of amendment. Effective 30 days after publication in total quantity of exempted tomatoes in REVOCATION, SUSPENSION, MODIFICATION, ederal egister more than one lot, in which case each the F R , Part 50, 10 CFR, AMENDMENTS OF LICENSES AND CONSTRUC certificate so issued shall be limited to “Control of Facilities for the Production TION PERMITS, EMERGENCY OPERATIONS BY the quantity of exempted tomatoes to of Fissionable Material,” is hereby THE COMMISSION amended to read as follows: be contained in the respective lots 50.100 Revocation, suspension, modification shipped and the total quantity of ex GENERAL PROVISIONS of licenses and construction per empted tomatoes covered by such cer Sec. mits for cause. tificates shall not exceed the total 50.1 Basis and purpose. 50.101 Retaking possession of special nu Quantity of such tomatoes which would 50.2 Definitions. clear material. be authorized if only one certificate were 50.3 Interpretations. 50.102 Commission operation after revoca issued to such applicant. tion. REQUIREMENT OF LICENSE, EXCEPTIONS 50.103 Suspension and operation in war or (b) The applicant shall be notified in national emergency. writing if his request for exemption is 50.10 License required. denied. 50.11 Exceptions and exemptions from ^ ENFORCEMENT license. (c) Each exemption certificate issued 50.12 Specific exemptions. 50.110 Violations. Pursuant to this subpart shall be on a A u t h o r i t y : §.§ 50.1 to 50.110 issued under form duly approved by the committee CLASSIFICATION AND DESCRIPTION OF LICENSES sec. 103, 68 Stat. 936, sec. 104, 68 Stat. 937, b^d signed by an authorized representa 50.20 Two classes of licenses. sec. 161, 68 Stat. 948, sec. 182, 68 Stat. 953, sec. tive of such committee. At least one 50.21 Class 104 licenses; for medical 183, 68 Stat. 954; 42 U. S. C. 2133, 2134, 2201, copy of each exemption certificate issued therapy and research and develop 2232, 2233. For the purposes of sec. 223, 68 shall be retained in the committee rec ment facilities. Stat. 958; 42 ü. S. C. 2273, § 50.54 (i) issued 356 RULES AND REGULATIONS under sec. 1611, 68 Stat. 949; 42 U. S. C. 2201, dependent establishment, corporation, REQUIREMENT OF LICENSE, EXCEPTIONS and § § 50.70 to 50.71 issued under sec. 161p., wholly or partly owned by the United 68 Stat. 950; 42 U. S. C. 2201. § 50.10 License required. Except as States of America which is an instru provided in § 50.11, no person within the GENERAL PROVISIONS mentality of the United States, or any board, bureau, division, service, office, United States shall transfer or receive § 50.1 Basis purpose, and procedures officer, authority, administration, or in interstate commerce, manufacture, applicable. The regulations in this part other establishment in the executive produce, transfer, acquire, possess, use, are promulgated by the Atomic Energy branch of the Government. import, or' export any production or Commission, pursuant to the Atomic En (k) “Nuclear reactor” means an ap utilization facility except as authorized ergy Act of 1954 (68 Stat. 919), to pro paratus, other than an atomic weapon, by a license issued by the Commission. vide for the licensing of production and designed or used to sustain nuclear fis § 50.11 Exceptions and exemptions utilization facilities. sion in a self-supporting chain reaction. from license. Nothing in this part shall § 50.2 Definitions. As used in this (l) “Person” means (1) any individ be deemed to require a license for: part, ual, corporation, partnership, firm, as (a) The manufacture, production, or (a) “Production facility” means: sociation, trust, estate, public or private acquisition by the Department of De (1) Any nuclear reactor designed or institution, group, Government agency fense of any utilization facility author used primarily for the formation of other than the Commission, any State or ized pursuant to section 91 of the act, plutonium or uranium 233; or any political subdivision of, or any polit or the use of such facility by the Depart (2) Any facility designed or used for ical entity within a State, any foreign ment of Defense or by a person under the separation of the isotopes of uranium government or nation or any political contract with and for the account of the or the isotopes of plutonium, except lab subdivision of any such government or Department of Defense; oratory scale facilities designed or used nation, or other entity; and (2) any (b) The processing, fabricating, or re for experimental or analytical purposes legal successor, representative, agent, or fining of special nuclear material, or the only; or agency of the foregoing. separation of special nuclear material, (3) Any facility designed or used for (m) “Produce,” when used in relation or the separation of special nuclear ma the processing of irradiated materials to special nuclear material, means (1)' terial from other substances, under con containing special nuclear material, ex to manufacture, make, produce, or refine tract with and for the account of the cept laboratory scale facilities designed special nuclear material; (2) to separate Commission; or used for experimental or analytical special nuclear material from other sub (c) The construction or operation of purposes only. stances in which such material may be production or utilization facilities under (b) “Utilization facility” means any contained; or (3) to make or to produce contract with and for the account of the nuclear reactor other than one designed new special nuclear material. Commission; or or used primarily for the formation of (n) “Research and development” (d) The transportation or possession plutonium or U-233. means (1) theoretical analysis, explora of any production or utilization facility tion, or experimentation; or (2) the ex Note: Pursuant to sections lip and llv., by a common or contract carrier or ware respectively, of the Act, the Commission may tension of investigative findings and houseman in the regular course of car from time to time add to, or otherwise alter, theories of a scientific or technical na riage for another or storage incident the foregoing definitions of production and ture into practical application for exper thereto. utilization facility. It may also include as imental and demonstration purposes, a facility an important component part es including the experimental production § 50.12 Specific exemptions. The pecially designed for a facility, hut has not and testing of models, devices, equip Commission may, upon application by at this time included any component parts ment, materials, and processes. any interested person, grant such ex in the definitions. (o) “Restricted Data” means all data emptions from the requirements of the (c) “Act” means the Atomic Energy concerning (1) design, manufacture, or regulations in this part as it determines Act of 1954 (68 Stat. 919) including any utilization of atomic weapons; (2) the are authorized by law and will not en amendments thereto. production of special nuclear material; danger life or property or the common (d) “A greem ent for cooperation” or (3) the use of special nuclear mate defense and security and are otherwise means any agreement with another na rial in the production of energy, but shall in the public interest. tion or regional defense organization, not include data declassified or removed CLASSIFICATION AND DESCRIPTION OF authorized or permitted by sections 54, from the Restricted Data category pur LICENSES 57, 64, 82, 103, 104, or 144 of the act, suant to section 142 of the act. (p) “Source material” means source § 50.20 Two classes of licenses. Li and made pursuant to section 123 of the censes will be issued to named persons act. material as defined in section 11s of the act and in the regulations contained in applying to the Commission therefor, (e) “Atomic energy” means all forms and will be either class 104 or class 103. of energy released in the course of nu Part 40 of this chapter. clear fission or nuclear transformation. (q) “Special nuclear material” means § 50.21 Class 104 licenses; for medical (f) “Atomic weapon” means any de (1) plutonium, uranium 233, uranium therapy and research and development vice utilizing atomic energy, exclusive enriched in the isotope 233 or in the facilities. A class 104 license will be is of the means for transporting or pro isotope 235, and any other material sued, to an applicant who qualifies, for pelling the device (where such means is which the Commission, pursuant to the any one or more of the following: to a separable and divisible part of the de provisions of section 51 of the act, deter transfer or receive in interstate com vice), the principal purpose of which is mines to be special nuclear material, but merce, manufacture, produce, transfer, for use as, or for development of, a does not include source material; or (2) acquire, possess, use, import, or export weapon, a weapon prototype, or a weapon any material artifically enriched by any under the terms of an agreement for test device. of the foregoing, but does not include cooperation: (g) “By-product material” means any source material. (a) A utilization facility for use ih radioactive material (except special nu (r) “United States,” when used in a medical therapy; or clear material) yielded in or made radio (b) A production or utilization facility active by exposure to the radiation geographical sense, includes all Terri involved in the conduct of research ana incident to the process of producing or tories and possessions of the United development activities leading to the utilizing special nuclear material. States, the Canal Zone, and Puerto Rico. demonstration of the practical value oi (h) “Commission” means the Atomic § 50.3 Interpretations. Except as spe the facility for industrial or c o m m e rc ia l purposes; or ' .. Energy Commission or its duly author cifically authorized by the Commission in (c) A production or utilization facil ized representatives. writing, no interpretation of the meaning ity, which is useful in the conduct oi (i) “Common defense and security” of the regulations in this part by any research and development activities o means the common defense and security officer or employee of the Commission the types specified in section 31 of tn of the United States. other than a written interpretation by act, and which is not a facility of tn (j) “Government agency” means any the General Counsel will be recognized type specified in subparagraph (b) ° executive department, commission, in to be binding upon the Commission. this section. Thursday, January 19, 1956 FEDERAL REGISTER 357
§ 50.22 Class 103 licenses; for com- poration, or foreign government, and if proposed to minimize the probability of mercial and industrial facilities. A class so, give details. danger from radioactivity to persons 103 license will be issued, to an applicant (4) If the applicant is acting as agentboth on and off-site. The description who qualifies, for any one or more of or representative of another person in should also cover any activities, other the following: to transfer or receive in filing the application, identify the prin than those subject to license, proposed to interstate commerce, manufacture, pro cipal and furnish information required be carried on in the building which will duce, transfer, acquire, possess, use, im under this paragraph with respect to house the facility and on the balance of port, or export under the terms of an such principal. the site. agreement for cooperation, a production (e) The class of license applied for, (c) A description of the site on which or utilization facility which is of a type the use to which the facility will be put, the facility is to be located. This should found in writing by the Commission, to the period of time for which the license include a map of the area showing the have been sufficiently developed to be of is sought, and a list of other licenses, location of the site and indicating the practical value for industrial or commer except operator’s licenses, issued or ap use to which the surrounding land is put, cial purposes. plied for in connection with the proposed i. e., industrial, commercial, agricultural, facility. residential; location of sources of potable § 50.23 Construction permits. £ con
through 50.38 and the standards of (e) The license shall be subject to rev to the same conditions to which a license §§ 50.40 through 50.43. ocation, suspension, modification, or is subject. amendment for cause as provided in the (d) At or about the time of comple ISSUA NCE, LIMITATIONS, AND CONDITIONS OF act and regulations, in accordance with tion of the construction or modification LICENSES AND CONSTRUCTION PERMITS the procedures provided by the act and of the facility, the applicant will file any § 50.50 Issuance of licenses and con regulations. additional information needed to bring struction permits. Upon determination (f) The licensee will at any time be the original application for license up to that an application for a license meets fore expiration of the license, upon re date. the standards and requirements of the quest of the Commission submit written § 50.56 Conversion of construction act and regulations, and that notifica statements, signed under oath or affirma permit to license; or amendment of li tions, if any, to other agencies or bodies tion, to enable the Commission to deter cense. Upon completion of the con have been duly made, the Commission mine whether or not the license should struction or alteration of a facility, in will issue a license, or if appropriate a be modified, suspended or revoked. compliance with the terms and condi construction permit, in such form and (g) The issuance or existence of the tions of the construction permit and containing such conditions and limita license shall not be deemed to waive, or. subject to any necessary testing of the tions including technical specifications, relieve the license from compliance with, facility for health or safety purposes, the •as it deems appropriate and necessary. the antitrust laws, as specified in subsec Commission will, in the absence of good § 50.51 Duration of license, renewal. tion 105a of the act. In the event that cause shown to the contrary issue a li Each license will be issued for a fixed the licensee should be found by a court cense of the class for which the con period of time to be specified in the of competent jurisdiction to have vio struction permit was issued or an appro license but in no case to exceed 40 years lated any provision of such antitrust laws priate amendment of the license, as the from the date of issuance. Where the in the conduct of the licensed activity, case may be. operation of a facility is involved, the the Commission may suspend or revoke Commission will issue the license for the the license or take such other action with ALLOCATION OF SPECIAL NUCLEAR MATERIAL term requested by the applicant or for respect to it as shall be deemed necessary. ? 50.60 Allocation of special nuclear the estimated useful life of the facility if (h) The license shall be subject to the material, (a) In construction permits the Commission determines that the provisions of the act now or hereafter and licenses issued to applicants pro estimated useful life is less than the term in effect and to all rules, regulations, and posing to operate production or utiliza requested. Where construction of a orders of the Commission. The terms tion facilities, the Commission may in facility is involved, the Commission may and conditions of the license shall be corporate provisions designating the specify in the construction permit the subject to amendment, revision, or modi quantities of special nuclear material period for which the license will be is fication, by reason of amendments of available for Use by each such facility. sued if approved pursuant to § 50.56. the act or by reason of rules, regulations, Such provisions will normally be in the Licenses may be renewed by the Com and orders issued in accordance with the form of a statement that the Commis mission upon the expiration of the terms of the act. sion has allocated to the applicant, for period. (i) The licensee shall not permit the use in connection with the operation of manipulation of the controls of any pro the particular facility involved, a desig § 50.52 Combining licenses. The duction or utilization facility by anyone nated quantity (or quantities) of special Commission may combine in a single who is not a licensed operator as pro nuclear material. The statement will in license the activities of an applicant vided in Part 55 of this chapter. clude an estimated schedule for a rea which would otherwise be licensed sev (j) The licensee shall not, except as sonable period of time of special nuclear erally. authorized pursuant to a construction material transfers to the applicant and § 50.53 Jurisdictional lim itations. permit, make any alteration in the facil of special nuclear material returns to the No license under this part shall be ity constituting a change from the tech Commission. deemed to have been issued for activities nical specifications previously incorpo (b) The request for incorporation of which, are not under or within the juris rated in a license or construction permit such provisions may be made simultane diction of the United States except inso pursuant to § 50.36. ously with the submission of an applica far as the export of production or utili § 50.55 Conditions of construction tion for construction permit or facility zation facilities is authorized. permits. Each construction' permit shall license or at any time thereafter. Such be subject to the following terms and request should be accompanied by at § 50.54 Conditions of licenses. least the following information: Whether stated therein or not, the fol conditions : lowing shall be deemed conditions in (aL'The permit shall state the earliest (1) The applicant’s financial qualifi every license issued : and latest dates for completion of the cations to assume responsibility for pay (a) Title to all special nuclear mate construction or modification. If the con ment of Commission charges for the ma rial utilized or produced by facilites pur struction or modification is completed terials, and to undertake and carry out suant to the license shall at all times be before the earliest date specified, the the proposed use of special nuclear ma in the United States. holder of the permit shall promptly no terial for a reasonable period of time; (b) No right to the special nuclear tify the Commission for the purpose of (2) The estimated date on which the material shall be conferred by the li accelerating final inspection and any applicant desires to receive the first ship cense except as may be defined by the scheduled delivery of materials from the ment of special nuclear material and an license. Commission. estimated schedule, by years, for subse (c) Neither the license, nor any right -itb) If the proposed construction or modification of the facility is not com quent receipts; thereunder, nor any right to utilize or (3) A schedule, by years, showing the produce special nuclear material shall pleted by the latest completion date, the permit shall expire ahd all rights there estimated production, consumption and be transferred, assigned, or-disposed of operating losses of special nuclear ma m any manner, either voluntarily or In under shall be forfeited: Provided, how voluntarily, directly or indirectly, ever, That upon good cause shown the terial; and through transfer of control of the license Commission will extend the completion (4) An estimated schedule, by years, to any person, unless the Commission date for a reasonable period of time. for the transfer of special nuclear mate shall, after securing full information, The Commission will recognize, among rial to the Commission or to other find that the transfer is in accordance other things, developmental problems at licenses. tributable to the experimental nature of with the provisions of the act and give Supporting data for the estimates re its consent in writing. the facility or fire, flood, explosion, strike, sabotage, domestic violence, en quired by subparagraphs (2), (3), and (d) The license shall be subject to (4) of this paragraph shall be included. suspension and to the rights of recapture emy action, an act of the elements, and of the material or control of the facility other acts beyond the control of the per (c) A request for the incorporation in reserved to the Commission Under sec mit holder, as a basis for extending the a construction permit or license of pro tion 108 of the act in a state of war or completion date. visions designating the amount of special national emergency declared by Con (c) Except as modified by this section,material available for use by the facility gress. the construction permit shall be subject will be approved by the Commission if : 360 RULES AND REGULATIONS
(1) The quantities of special nuclear license or construction permit will be is (4) Order entry into any plant or material are available for distribution sued to the applicant, the Commission facility in order to recapture special nu under section 53 of the act; and will be guided by the considerations clear material or to operate the facility. (2) The applicant appears to be finan which govern the issuance of initial li (b) Just compensation shall be paid cially qualified to assume responsibility censes or construction permits, to the for any damages caused by recapture of for the payment of Commission charges extent applicable and appropriate. If special nuclear material or by operation for the material and to undertake and the application involves the material al of any facility, pursuant to this section. carry out the proposed use of special teration of a licensed facility, a construc nuclear material for a reasonable period tion permit will be issued prior to the ENFORCEMENT of time; and issuance of the amendment to the license. §-50.110 Violations. An injunction or (3) The estimated quantities and other court order may be obtained pro schedules submitted in response to para REVOCATION, SUSPENSION, MODIFICATION, hibiting any violation of any provision graph (b) of this section are reasonable; AMENDMENT OF LICENSES AND CONSTRUC of the act or any regulation or order and TION PERMITS, EMERGENCY OPERATIONS BY issued thereunder. Any person who wil (4) Approval of the request is con THE COMMISSION fully violates any provision of the act or sistent with the priority and preference § 50.100 Revocation, suspension, mod any regulation or order issued thereun provisions of the act, including sections ification of licenses and construction der may be guilty of a crime and, upon 53f, 104b, and 182. :permits for cause. A license or construc conviction, may be punished by fine or (d) The Commission may, in accordtion permit may be revoked, suspended, imprisonment or both, as provided by ance with the procedures provided in or modified, in whole or in part, for any law. Part 2 of this chapter, reduce the quan material false statement in the applica N o t e : The reporting and recordkeeping re tities of special nuclear material allo tion for license or in the supplemental or quirements contained herein have been ap cated to any permittee or licensee pursu other statement of fact required of the proved by the Bureau of the Budget in ac ant to this section, upon the ground that applicant; or because of conditions re cordance with The Federal Reports Act of the quantities allocated exceed those vealed by the application for license or 1942. reasonably required, or estimated to be statement of fact or any report, record, Dated at Washington, D. C., this 12th required, for use by the facility involved. inspection, or other means, which would day of January 1956. The expiration, revocation or other ter warrant the Commission to refuse to mination of a construction permit or li grant a license on an original applica K. E. F ields, cense shall terminate all allocations tion (other than those relating to General Manager. incorporated in such permit or license. §§ 50.51, 50.42 (a), and 50.43 (b) ) ; or for [F. R. Doc. 56-417; Filed, Jan. 18, 1956; 8:49 a. in.] N o t e : Quantities o f special nuclear ma failure to construct or operate a facility terial allocated pursuant to the provisions in accordance with the terms of the con of this section will not be distributed to the struction permit or license, provided that licensee until needed. At the time the allo failure to make timely completion of the TITLE 24-^-HOUSING AND cation is made, however, the Commission proposed construction or alteration of a HOUSING CREDIT will make appropriate entries in its special facility under a construction permit shall nuclear material inventory and accounting Chapter III — Public Housing Ad records to reflect such allocation. be governed by the provisions of § 50.55 (b) ; or for violation of, or failure to ministration, Housing and Home INSPECTION, RECORDS, REPORTS observe, any of the terms and provisions Finance Agency § 50.70 Inspections. Each licensee of the act, regulations, license, permit, Part 320—Low-R ent Housing and Slum and each holder of a construction permit or order of the Commission. shall permit inspection, by duly author Clearance Program ized representatives of the Commission, § 50.101 Retaking possession of spe Part 330—Resettlement Program cial nuclear material. Upon revocation of his records, premises, activities, and REVOCATION OF PARTS of licensed materials in possession or use, of a license, the Commission may imme related to the license or construction per diately retake possession of all special Chapter III—Public Housing Adminis mit as may be necessary to effectuate the nuclear material held by the licensee. tration, is amended as follows: sections 320.1 through 320.10 which constitute purposes of the act, including section 105 § 50.102 Commission operation after of the act. Part 320, Low-Rent Housing and Slum revocation. Whenever the Commission Clearance Program, and §§ 330.1 through § 50.71 Maintenance of records, mak finds that the public convenience and 330.4 which constitute Part 330, Resettle ing of reports. Each licensee and each necessity, or the production program of ment Program, are hereby revoked. holder of a construction permit shall the Commission, requires continued op , Date approved: January 13, 1956. maintain such records and make such eration of a production or utilization [seal] Charles E. Slusser, reports, in connection with the licensed facility, the license for which has been Commissioner. activity, as may be required by the con revoked, the Commission may, after con ditions of the license or permit or by sultation with the appropriate federal [F. R. Doc. 56-413; Filed, Jan. 18, 1956; the rules, regulations, and orders of the or state regulatory agency having juris 8:48 a. m.] Commission in effectuating the purposes diction, order that possession be taken of the act, including section 105 of the of such facility and that it be operated TITLE 47— TELECOMMUNI act. for a period of time as, in the judgment CATION TRANSFER OF LICENSES-CREDITORS’ RIGHTS; of the Commission, the public conven SURRENDER OF LICENSES ience and necessity or the production Chapter I— Federal Communications program of the Commission may require, [Sections 50.80 to 50.89 reserved] Commission or until a license for operation of the [Docket No. 11301; FCC 56-47] AMENDMENT OF LICENSE OR CONSTRUCTION facility shall become effective. Just PERMIT AT REQUEST OF HOLDER compensation shall be paid for the use of [Rules Amdt. 3-5] P art 3—R adio B roadcast S ervices § 50.90 Application for amendment of the facility. license or construction permit. When § 50.103 Suspension and operation in TABLE OF ASSIGNMENTS ever a holder of a license or construction war or national emergency, (a) When In the matter of amendment of permit desires to amend the license or ever Congress declares that a state of war § 3.606, Table of assignments, rules gov permit, application for an amendment or national emergency exists, the Com erning Television Broadcast S t a t i o n s shall be filed with the Commission, fully mission, if it finds it necessary to the (Springfield-Holyoke, M assachusetts). describing the changes desired, and fol common defense and security, may, 1. The Commission has before it for lowing as far as applicable the form (1) Suspend any license it has issued. consideration its Notice of Further Pro prescribed for origipal applications. (2) Order the recapture of special nu posed Rule Making and Order to Show clear material distributed. Cause issued on April 29, 1955 (FCO § 50.91 Issuance of amendment. In (3) Order the operation of any li 55-517) and published in the Federal determining whether an amendment to a censed facility. R egister on May 4,1955 (20 F. R. 298»)» Thursday, January 19, 1956 FEDERAL REGISTER 361
The Notice advised that a proposal had (Sec. 4, 48 Stat. 1066, as amended; 47 TJ. S. C. transmitters which are included in the been advanced for amending § 3.606, 154. Interprets or applies secs. 301, 303, 307, Commission’s “List of Equipment Ac 48 Stat. 1081, 1082, as amended, 1084, sec. ceptable for Licensing” in these services. Table of assignments, of the Commis 316, 66 Stat. 711; 47 U. S. C. 153, 301, 303, 307) sion’s rules and regulations so as to as These amendments are not substantive sign Channel 40 to Springfield-Holyoke, Adopted: January 11, 1956. in nature but relate primarily to matters of internal practice and procedure and Massachusetts, in place of Channel 55. Released: January 13, 1956. This channel shift can be accomplished simplify the processing of applications. by substituting Channel 57 for Channel F ederal Communications The persons affected require no time to 40 in Montpelier, Vermont. Commission, conform their conduct to the changes 2. No comments opposing the pro [seal] W m. P. Massing, herein adopted. Accordingly, general posed amendment were filed. The Acting Secretary. notice of proposed rule making is un Hampden-Hampshire Corporation sup [F. R. Doc. 56-419; Filed, Jan. 18, 1956; necessary and these amendments may be ported the proposed amendment and 8:49 a. m.] made effective immediately. stated that it will file an appropriate ap Accordingly; It is ordered, Pursuant to plication requesting modification of its the provisions of section 303 of the Com present instrument of authorization for munications Act of 1934, as amended, operation of Station WHYN-TV on the [FCC 56-37; Rules Arndts. 10-9, 11-15, 16-4] that effective immediately Parts 10, 11 and 16 of the Commission’s rules are new channel. P art 10—P ublic S afety R adio S ervices 3. It has been the Commission’s policy amended as set forth below. to amend the Table of Assignments in P art 11— Industrial R adio S ervices (Sec. 4, 48 Stat. 1066, as amended; 47 U. S. C. . order that an operating UHF television P art 16—Land T ransportation R adio 154. Interpret or apply sec. 303, 48 Stat. 1082, station may be assigned a lower UHF S ervices as amended; 47 U. S. C. 303) frequency in. those cases where the lower Released: January 13, 1956. frequency could be obtained from a com miscellaneous amendments munity not yet ready to proceed with In the matter of amendments of Parts F ederal Communications television. It is believed that when the 10, 11 and 16 of the Commission’s rules Commission, latter community is ready to establish its to provide for a single application and [seal] Wm. P. Massing, own television station, the temporary authorization for two or more units of Acting Secretary. equipment problems now present in the base or fixed stations at temporary 1. Amend § 10.53 (e) (1) to read: operation on the higher UHF frequencies locations. will be resolved. No applications have At a session of the Federal Communi (1) When one or more individual been filed for Channel 40 in Montpelier cations Commission held at its office in transmitters are intended to be operated and no Montpelier parties have evidenced Washington, D. C., on the 11th day of as a base station or as a fixed station at an interest in utilizing the frequency in January 1956; unspecified or temporary locations for the foreseeable future. In these circum Parts 10,11 and 16 of the Commission’s indeterminate periods, such transmitters stances, the Commission believes that the rules governing the Public Safety, In may be considered to comprise a single public interest would be served by shift dustrial, and Land Transportation Radio station intended to be operated at tem ing Channel 40 to Springfield-Holyoke Services provide for separate applica porary locations. An application for where it can be employed by an operating tions and authorizations for each trans authority to operate a base station or a station. If Channel 40 is assigned to mitter to be used as a base or fixed fixed station at temporary locations shall Springfield-Holyoke, the present fre station at temporary locations: As a re specify the general geographic area quency of Station WHYN-TV, Channel sult, many applications and authoriza within which the operation will be con 55 cannot also be used in that commu tions for such stations are identical fined. The area specified may be a city, nity. Accordingly, it is necessary to de except for the different call signs as a county or counties, or a state or states. lete the present frequency of Station signed each transmitter. The Commis 2. Amend § 10.55 (a) (2) to read: WHYN-TV pursuant to a Show Cause sion desires to reduce the clerical burden Order. on applicants and Commission staff by (2) New station authorizations for any 4. In view of the foregoing, the Com combining both, applications and au required number of mobile units (in mission is of the view that the public thorizations into single documents for cluding hand-carried or pack-carried interest would be served by finalizing the each base or fixed system, rather than units) or any required number of units proposed amendment and by shifting the for each transmitter, and issue a single of a base station or fixed station to be frequency of WHYN-TV to Channel 40. call sign for each system. operated at temporary locations in the 5. Authority for the adoption of the It must be clearly understood that the same service. proposed amendment is contained in attached rule amendments contemplate N o t e : An application for mobile units may sections 4 (i), 301, 303 (c), (d), (f), and only the consolidation of applications be combined with an application for a single (r), 307 (b) and 316 (a) of the Com and authorizations, and do not mean base station in those cases where the mobile munications Act of 1943, as amended. units will operate with that base station that existing policies, which determine in a single radio communication system. 6. In view of the foregoing: It is whether a grant of one or more trans ordered, That effective February 14, mitters at temporary locations will be in 3. Amend § 10.65 (b) (4) and (5) to 1956, the Table of Assignments con the public interest in individual cases or read: tained in § 3.606, Rules Governing Tel services, have been changed. No change (4) A reduction in the overall number evision Broadcast Stations, is amended, in the Commission’s requirements con insofar as the cities named are con of transmitters authorized for mobile cerning identification, permissible com use, or for use at base or fixed stations cerned, as follows: munications, operator requirements, sta Channel authorized to be operated at temporary City: No. tion records, notification of operation to locations. Springfield-Holyoke, Mass...... 22, 40 Commission field offices, antenna struc (5) An increase in the overall number Montpelier, Vt______57 ture marking, and other similar rules of transmitters authorized for mobile is intended, except where procedural use, or for use at base stations or fixed 7, It is further ordered, That effectivechanges have been necessary for clari February 14, 1956, the outstanding au stations to be operated at temporary lo fication. cations within the authorized area of thorization of Station WHYN-TV, is Provision has been made for attaching modified, to specify operation on Chan operation. This form may be used only Transmitter Identification Cards to when adding transmitters which are in nel 40 in Springfield, Massachusetts, in transmitters at temporary locations, and stead of Channel 55, and an appropriate for the optional use of unit designators cluded in the Commission’s “List of authorization will be issued to the Hamp in addition to the required call sign used Equipment Acceptable for Licensing” and den-Hampshire Corporation. Data with in common for identification by all units. designated for use in the Public Safety respect to the proposed operation of Provision also has been made for the use Radio Services. WHYN-TV on Channel 40 in Springfield of FCC Form 400-A, Request for Amend 4. Amend § 10.157 (a) to read: should be submitted to the Commission ment of Radio Station Authorization, to on FCC Form 301 within 30 days after delete units of such stations from out § 10.157 Transmitter identification the effective date of this Order. standing authorizations, and to add card and posting of station license, (a) No. 12----- 2 362 RULES AND REGULATIONS
The current authorization for each mo (2) New station authorizations for any (5) Signature of the permittee or bile station and each base or fixed sta required number of mobile units (includ licensee, or a designated official thereof. tion authorized to be operated at ing hand-carried or pack-carried units) (b) The current authorization for each temporary locations shall be retained as or any required number of units of a base base or fixed station, except those au a permanent part of the station record, station or fixed station to be operated at thorized to be used at temporary loca but heed not be posted. An executed temporary locations in the same service. tions, shall be posted at what the licensee Transmitter Identification Card (PCC N o t e : An application for mobile units may considers to be the principal control po Form 452-C) shall be affixed to each be combined with an application for a single sition of that station. At all other con mobile transmitted or associated control base station for such mobile units as will op trol points listed on the station author equipment and each transmitter of a erate with that base station only. ization, a photocopy of the authorization base station or a fixed station authorized 9. Amend § 11.58 to add new para shall be posted. In addition, an executed to be used at temporary locations or as graph (j) to read: Transmitter Identification Card (FCC sociated control equipment. When the Form 452-C, Revised) shall be affixed transmitter is not in view of and readily (j ) Data required by the rules in conto each transmitter operated at a fixed accessible to the operator, it is preferred nection with operation of base or fixed location, when such transmitter is not in that the Identification Card be affixed to stations at temporary locations. See view of, and readily accessible to, the the control equipment at the transmit § 11.54 (e) (1). operator at the principal control position. ter operating position. The following 10. Amend § 11.64 (b) (4) and (5) to (Sec. 4, 48 Stat. 1066, as amended; 47 U. S. C. information shall be entered on the card read: • • / 154. Interpret or apply sec. 303, 48 Stat. by the permittee or licensee: 1082, as amended; 47 TJ. S. C. 303) (1) Name of permittee or licensee; (4) A reduction in the overall number (2) Station call signal assigned by the of transmitters authorized for mobile 13. Amend § 16.54 (e) to read: Commission; use, or for use at base or fixed stations (e) Applications involving operation (3) Exact location or locations of the authorized to be operated at temporary at temporary locations: transmitter records; locations. (1) When one or more individual (4) Frequency or frequencies on (5) An increase in the overall number transmitters are intended to be operated which the transmitter to which attached of transmitters authorized for mobile as a base station or as a fixed station at is adjusted to operate; and use, or for use at base stations or fixed unspecified or temporary locations for (5) Signature of the permittee or li stations to be operated at temporary lo indeterminate periods, such transmitters censee, or a designated official thereof. cations within the authorized area of op may be considered to comprise a single eration. This form may be used only station intended to be operated at tem 5. Amend § 10.157 to delete the text of when adding transmitters which are in paragraph (c) and insert in lieu thereof porary locations. An application for au cluded in the Commission’s “List of thority to operate a base station or a the word “Reserved.” Equipment Acceptable for Licensing” 6. Amend § 10.161 (c) to read; fixed station at temporary locations shall and designated for use in the Industrial specify The general geographic area (c) For all base and fixed stations exRadio Services. within which the operation will be con cept such stations which are authorized 11. Amend § 11.152 to add new para fined. The area specified may be a city, to be operated at temporary locations or graph (e) to read: a county or counties, or a state or states. for un-attended operation, the name or Sufficient data must be submitted to names of persons responsible for the (e) A unit designator may be used inshow the need for the proposed area of operation of the transmitting equipment addition to the station identification re operation. each day, together with the period of quired by this section, to identify an in (2) When any unit or units of a base their duty. Each such person shall sign, dividual unit or transmitter of a base station or fixed station authorized to not initial, the record both when coming station or a fixed station which is au operate at temporary locations actually on and when going off duty. thorized to be operated at temporary remains or is intended to remain at the (Sec. 4, 48 Stat. 1066, as amended; 47 TJ. S. C. locations. same location for a period of over a year, 154. Interpret or apply sec. 303, 48 Stat. 12. Amend § 11.156 (a) and (b) to application for a separate authorization 1082., as amended; 47 U. S. C. 303) read: % specifying the fixed location, shall be 7. Amend § 11.54 (e) to read: § 11.156 Transmitter identification made as soon as possible but not later card and posting of station license, (a) than 30 days after the expiration of the (e) Applications involving operation at one year period. temporary locations: The current authorization for each mo (1) When one or more individual bile station and each base or fixed station 14. Amend § 16.56 (a) (2) to read: transmitters are intended to be operated authorized to be operated at temporary (2) New station authorizations for any as a base station or as a fixed station at locations shall be retained as a perma required number of mobile units (includ unspecified or temporary locations for nent part of the station record, but need ing hand-carried or pack-carried units) indeterminate periods, such transmitters not be posted. An executed Transmitter or any required number of units of a may be considered to comprise a single Identification Card (FCC Form 452-C) base station or fixed station at temporary station intended to be operated at tem shall be affixed to each mobile transmit locations to be operated in the same porary locations. An application for ter or associated control equipment and service. authority to operate a base station or a each transmitter of a base station or fixed station authorized to be used at Note: An application for mobile units may fixed station at temporary locations shall be combined with an application for a single specify the general geographic area with temporary locations or associated control base station for such mobile units as will in which the operation will be confined. equipment. When the transmitter is not operate with that base station only. The area specified may be a city, a county in view of and readily accessible to the or counties, or a state or states. Suffi operator, it is preferred that the Iden 15. Amend § 16.58 to add new para cient data must be submitted to show the tification Card be affixed to the control graph Cj) to read: need for the proposed area of operation. equipment at the transmitter operating (j ) Data required by the rules in con (2) When any unit or units of a base position. The following information nection with operation of base or fixed station or fixed station authorized to be shall be entered on the card by the per stations at temporary locations. See operated at temporary locations actually mittee or licensee: § 16.54 (e) (1). remains or is intended to remain at the (1) Name of permittee or licensee; same location for a period of over a year, (2) Station call signal assigned by the 16. Amend § 16.64 (b) (4) and (5) to application for a separate authorization Commission; read: specifying the fixed location, shall be (3) Exact location or locations of the (4) A reduction in the overall number made as soon as possible but not later transmitter records; of transmitters authorized for mobile than 30 days after the expiration of the (4) Frequency or frequencies on which use, or for use at base or fixed stations one year period. the transmitter to which attached is ad authorized to be operated at temporary 8. Amend § 11.56 (a) (2) to read: justed, to operate; and locations. Thursday, January 19, 1956 FEDERAL REGISTER 363 (5) An increase in the overall number TITLE 49— TRANSPORTATION SUBPART C— FLAMMABLE LIQUIDS; of transmitters authorized for mobile DEFINITION AND PREPARATION use, or for use at base stations or fixed Chapter I— Interstate Commerce 1. Amend § 73.118, paragraphs (a) and stations authorized to be operated at Commission (b) (16 F. R. 11777, Nov. 21, 1951) (15 temporary locations within the author [Docket No. 3666; Order 23[ F. R. 8298, Dec. 2, 1950) (49 CFR 1950 ized area of operation. This form may Rev., 1954 Supp., 73.118) to read as be used only when adding transmitters P a r t 73—S h i p p e r s follows: which are included in the Commission’s MISCELLANEOUS AMENDMENTS “List of Equipment Acceptable for Li § 73.118 Exemptions for flammable censing” and designated for use in the At a session of the Interstate Com-. liquids, (a) Flammable liquids, except Land Transportation Radio Services. merce Commission, Division 3, held at those enumerated in paragraph (c) of its office in Washington, D. C., on the this section, in inside metal containers 17. Amend § 16.152 to add new para 30th day of December 1955. not over 1 quart capacity each, packed graph (d) to read: The matter of revision of certain reg in strong outside containers, except as (d) A unit designator may be used in ulations governing the transportation of otherwise provided, are exempt from addition to the station identification re explosives and other dangerous articles, specification packaging, marking, and quired by this section, to identify an in formulated and published by the Com labeling requirements, except that mark dividual unit or transmitter of a base mission, being under consideration, and ing name of contents on outside con station or a fixed station which is au It appearing that a Notice No. 19 dated tainer is required for shipments via thorized to be operated at temporary April 1, 1955, setting forth proposed carrier by water. Shipments for trans locations. amendments to the said regulations and portation by highway carriers are exempt the reasons therefor and stating that also from Part 77 of this chapter, except 18. Amend § 16.156 (a) and (b) to consideration was to be given thereto, § 77.817, and Part 197 of this chapter. read: was published in the F e d e r a l R e g is t e r These exemptions do not apply to ship § 16.156 Transmitter identification on April 9, 1955 (20 F. R. 2325-2338), ments offered for transportation by rail card and posting of station license, (a) pursuant to the provisions of section 4 express. Hie current authorization for each mo of the Administrative Procedure Act; (b) Flammable liquids, except those bile station and each base or fixed sta that pursuant to said notice interested enumerated in paragraph (c) of this sec tion authorized to be operated at tem parties were given an opportunity to be tion, in inside containers having a ca porary locations shall be retained as a heard with respect to said proposed pacity not over 1 pint or 16 ounces by permanent part of the station record, amendments; that certain of the pro weight each, packed in strong outside but need not be posted. An executed posed amendments, to which no objec containers, are exempt from specification Transmitter Identification Card (FCC tions were received, have been approved packaging, marking, and labeling re Form 452-C, Revised) shall be affixed to by an order entered June 2, 1955; that quirements, except that marking name each mobile transmitter or associated objections were received from the Port of contents on outside container is re control equipment and each transmitter of New York Authority, the National quired for shipments via carrier by water. of a base station or fixed station au Tank Truck Carriers, Inc., and the Shipments for transportation by high National Truck Tank and Trailer Insti thorized to be used at temporary loca way carriers are exempt also from Part tute with respect to certain other re 77 of this chapter, except § 77.817, and tions or associated control equipment. maining proposed amendments; that a When the transmitter is not in view from Part 197 of this chapter. notice was issued on May 16, 1955, call ***** the control position or is not readily ac- . ing for an informal conference to dis cessible for inspection, the ldentification cuss the said objections; that such a 2. Amend § 73.120, paragraphs (a) and Card should be affixed to the control conference was held on July 13, 1955, (c) (19 F. R. 6267, 6268, Sept. .29, 1954) at which substantial agreement was (18 F. R. 3135, June 2, 1953) (49 CFR equipment at the transmitter operating 1950 Rev., 1954 Supp., 73.120) to read position. The following information reached and a request made by the as follows: shall be entered on the card by the per parties that the proposed amendments mittee or licensee: be incorporated in and set forth in an § 73.120 Automobiles, motorcycles, (1) Name of permittee or licensee: order without the circulation of a public tractors, or other self-propelled vehicles. notice; that revision of said proposed (a) Automobiles, motorcycles, tractors, (2) Station call signal assigned by the amendments to the extent found justi or other self-propelled vehicles, equipped Commission: fied has been made; and that said with gasoline or other fuel tanks,'pro (3) Exact location or locations of the amendments as so revised are deemed vided such tanks are securely closed are transmitter records; justified and necessary; exempt from specification packaging, (4) Frequency or frequencies on which It is ordered, That the aforesaid regu marking, and labeling requirements, ex the transmitter to which attached is ad lations governing the transportation of cept that marking name of contents on justed to operate; and explosives and other dangerous articles outside container is required for ship (5) Signature of the permittee or be, and they are hereby, amended as set ments via carrier by water. Shipments licensee, or a designated official thereof. forth below; for transportation by highway carriers (b) The current authorization for It is further ordered, That this order are exempt also from Part 77 of this each base or fixed station, except those shall become effective March 28, 1956, chapter, except § 77.817, and Part 197 of and shall remain in effect until further this chapter. When offered for trans authorized to be used at temporary loca order of the Commission; portation by carriers by rail freight or tions, shall be posted at what the licensee It is further ordered, That compliance highway, drainage of fuel tanks is not considers to be the principal control posi with the herein prescribed and amended required. When offered for transporta tion of that station. At all other control regulations is hereby authorized on and tion by rail express, fuel tanks must have Ponts listed on the station authorization, after the date of service of this order; been drained and securely closed. a Photocopy of the authorization shall And it is further ordered, That copies ***** Posted. In addition, an executed of this order be served upon all parties of (c) Truck bodies or trailers on flat Transmitter Identification Card (FCC record herein, and that notice shall be cars. Truck bodies or trailers with auto Porm 452-C, Revised) shall be affixed to given to the general public by depositing matic heating or refrigerating equip each transmitter operated at a fixed loca- a copy in the office of the Secretary of the ment of the flammable liquid type may ,on> when such transmitter is not in Commission at Washington, D. C., and by be shipped with fuel tanks filled and view of, and readily accessible to, the filing a copy thereof with the Director, equipment operating or inoperative, operator at the principal control position. Division of Federal Register. when used for the transportation of (Sec. 204, 4Q Stat. 546, as amended, 62 Stat. other freight and loaded on flat cars as (Sec. 4, 48 Stat. 1066; as amended; 47 U. S. O. 738; 49 U. S. C. 304, 18 U. S. C. 831-835) part of a joint rail-highway movement, lnoo InterPret or apply sec. 303, 48 Stat. provided the equipment and fuel supply *082, as amended; 47 U. S. C. 303) By the Commission, Division 3. are of a type approved by the Bureau of ip- R. Doc, 56-420; Filed, Jan. 18, 1956; [seal] Harold D. M cCoy, Explosives. The heating or refrigerating 8:49 a. m.] Secretary. units are exempt from specification 364 RULES AND REGULATIONS
packaging, marking, and labeling re Part 77 of this chapter, except § 77.817, § 73.176 Matches. * * * quirements in this service and shall be and Part 197 of this chapter, (g) Matches, strike-on-box, book and considered as carriers equipment but not card, must be packed in outside fiber- as shipments. SUBPART D---FLAMMABLE SOLIDS AND board or wooden boxes. They may be OXIDIZING MATERIALS packed in the same outside container 3. In § 73.128, amend the introductory 1. Amend § 73.153, paragraphs (a) text of paragraph (c) (20 P. R. 8101, Oct. with nonflammable articles when com 28, 1955) (49 CFR 1950 Rev., 1954 Supp., and (b) (20 F. R. 8101, Oct. 28, 1955) pactly packed in tightly closed inside 73.128) to read as follows: (19 F. R. 3260, June 3, 1954) (49 CFR containers or securely wrapped so as to 1950 Rev., 1954 Supp., 73.153) to read prevent accidental ignition. When so § 73.128 Paints and related mate as follows: packed, they are exempt from specifica rials. * * * § 73.153 Exemptions for flammable tion packaging, marking, and labeling (c) Paint, enamel, lacquer, stain,solids and oxidizing materials. (a) requirements except when for transpor shellac, varnish, aluminum, bronze, gold, Flammable solids and oxidizing mate tation by carrier by water each outside wood filler, liquid, and lacquer base rials, except those as enumerated in container shall be marked “Book liquid, and thinning, reducing and re paragraph (c) of this section, in inside Matches”, “Strike-on-Box Matches” or moving compounds therefor, and driers, containers not over 1 pound net weight “Card Matches”, as the case may be. liquid, therefor, in glass or earthenware each, in outside containers not exceed Shipments for transportation by high containers of not over 1 quart capacity ing 25 pounds net weight each are, un way carriers are exempt also from Part each, or metal containers of not over 5 less otherwise provided, exempt from 77 of this chapter, except § 77.817 and gallons capacity each, packed in strong specification packaging, marking, and Part 197 of this chapter. outside containers are exempt from spec labeling requirements, except that mark 5. Amend § 73.180, paragraph (b) (15 ification packaging, marking, and label ing name of contents on outside con F. R. 8307, Dec. 2, 1950) (49 CFR 73.180, ing requirements when offered for trans tainer is required for shipments via car 1950 Rev.) to read as follows: portation by rail freight, highway, or rier by water. Shipments for transpor water execpt when offered for trans tation by highway carriers are exempt § 73.180 Motion-picture film, and portation by carrier by water, name of also from Part 77 of this chapter, except X-ray film, unexposed. * * * contents must be marked on outside con § 77.817 and Part 197 of this chapter. (b) Motion-picture film and X-ray tainer. Shipments for transportation by (See paragraph (c) of this section for film, unexposed (nitrocellulose base), highway carriers are exempt also from articles not exempted, § 73.182 for ex when offered for transportation by rail Part 77, except § 77.817, and Part 197 emptions for nitrates, and paragraph (b) freight and highway are exempt from of this chapter. When offered for trans of this section for exemption for organic specification packaging, marking other portation by rail express, such shipments peroxides.) than name of contents, and labeling re are exempt from specification packaging, (b) Liquid or solid organic peroxides, quirements. Shipments for transporta marking, and labeling requirements, ex (see § 73.244 (a)), except acetyl benzoyl tion by highway carriers are exempt also cept that packages having inside con peroxide, solid, and benzoyl peroxide in from Part 77 of this chapter, except tainers of over 1 quart capacity each strong outside containers having not over § 77.817, and Part 197 of this chapter. must be marked with name of contents 1 pint or 1 pound net weight of the mate 6. In § 73.181, amend the introduc and bear the red label as prescribed in rial in any one such package, having in § 73.405. When fiberboard box is used tory text of paragraph (a) (15 F. R. for such shipments by rail freight, rail side containers securely packed and 8307, Dec. 2, 1950) (49 CFR 73.181, 1950 express, highway, or water, gross weight cushioned with incombustible cushioning Rev.) to read as follows: must not exceed 65 pounds. are, unless otherwise provided, exempt § 73.181 Motion-picture film; exemp ***** from specification packaging, marking, and labeling requirements, except that tions. (a) Motion-picture film as fol 4. Amend § 73.129, paragraph (b) (15 marking name of contents on outside lows is exempt from specification pack P. R. 8302, Dec. 2, 1950) (49 CFR 73.129, container is required for shipments via aging, marking, and labeling require 1950 Rev.) to read as follows: ments, except that marking name of carrier by water. Shipments for trans contents on outside container is required § 73.129 Polishes, metal, stove, furni portation by highway carriers are exempt for shipments via carrier by water. ture and wood, liquid. * * * also from Part 77 of this chapter, except Shipments for transportation by high (b) Polishes, metal, stove, furniture§,77.817, and Part 197 of this chapter. way carriers are exempt also from Part * * * , * and wood, liquid, in glass or earthenware 77 of this chapter, except § 77.817, and containers of not over 1 quart capacity 2. Amend § 73.159, paragraph (c) (15 Part 197 of this chapter, each, or metal containers not over 5 gal F. R. 8304, Dec. 2, 1950) (49 CFR 73.159, ***** lons capacity each, packed in strong out 1950 Rev.) to read as follows: side containers are exempt from specifi 7. Amend § 73.182, paragraph (a) (1) cation packaging, marking, and labeling § 73.159 Burnt cotton. * * * (19 F. R. 8526, Dec. 14, 1954) (49 CFR requirements, except that marking name (c) When burnt cotton is picked and 1950 Rev., 1954 Supp., 73.182) to read baled the separated cotton is not classed as follows: of contents on outside container is re as a dangerous article and is not subject quired for shipments via carrier by water. to Parts 71-78 and 197 of>this chapter. § 73.182 Nitrates, (a) * * * Shipments for transportation by high (1) Wooden or fiberboard boxes with way carriers are exempt also from Part 3. In § 73.162, amend the introductory glass, metal, or other strong inside con 77 of this chapter, except § 77.817, and text of paragraph (a) (15 F. R. 8304, tainers; in metal or fiber drums; in kegs Part 197 of this chapter. These exemp Dec. 2, 1950) (49 CFR 73.162, 1950 Rev.> or barrels; or in strong metal cans. tions do not apply to shipments offered to read as follows: When so packed they are exempt from for transportation by rail express. (See § 73.162 Charcoal, (a) Charcoal as specification packaging, marking other § 73.118 (b) for rail express exemptions.) described in this paragraph is exempt than name of contents, and labeling re 5. Amend § 73.130, paragraph (a) (15 from specification packaging, marking, quirements when for transportation by F. R. 8302, Dec. 2, 1950) (49 CFR 73.130, and labeling requirements for transpor rail or highway. Ammonium nitrate- 1950 Rev.) to read as follows: tation by rail freight, highway, or water carbonate mixtures and ammonium, ni except when for transportation by car trate mixed fertilizers so packed are § 73.130 Refrigerating machines, (a) rier by water, name of contents must be exempt from labeling requirements when Refrigerating machine^ assembled for shown on outside container. Shipments for transportation by water carrier. shipment and containing not over 15 for transportation by highway carriers Shipments for transportation by high pounds of a flammable liquid for their are exempt also from Part 77 of this way carriers are exempt also from Part operation are exempt from specification chapter, except § 77.817 and Part 197 of 77 of this chapter, except § 77.817, and packaging, marking, and labeling re this chapter. . Part 197 of this chapter. quirements, except that marking name * * • * • of contents on outside container is re 4. Amend § 73.176, paragraph (g) (16 8. In § 73.197, amend the introductory quired for shipments via carrier by F. R. 9374, Sept. 15, 1951) (49 CFR 1950 text of paragraph (a), and amend para water. Shipments for transportation by Rev., 1954 Supp., 73.176) to read as graph (b) (15 F. R. 8309, Dec. 2, 1950) highway carriers are exempt also from follows: to read as follows: Thursday, January 19, 1956 FEDERAL REGISTER 365 § 73.197 Pyroxylin plastics, in sheets, tainers of glass or metal not over five 16. In § 73.229, amend the introduc rolls, rods, or tubes, (a) Pyroxylin pounds capacity each, except that metal tory text of paragraph (c) ; amend para plastics, in sheets, rolls, rods, or tubes inside containers not over seven and one- graph (d) (20 F. R. 8102, Oct. 28, 1955) containing nitrocellulose is not subject half pounds capacity each are author (20 F. R. 951, Feb. 15, 1955) (49 CFR to Parts 71-78 and 197 of this chapter ized for material in tablet form only, are 73.229, 1950 Rev.) to read as follows: when offered for transportation by car exempt from specification packaging, § 73.229 Chlorate and borate mixtures riers by rail freight or highway but when marking, and labeling when offered for or chlorate and magnesium chloride offered for transportation by carriers by transportation by rail freight, rail ex mixtures. * * * rail express or water must be packed in press or highway. Shipments for trans (c) Chlorate and borate mixtures or specification containers as follows and portation by highway carriers are exempt chlorate and magnesium chloride mix must bear the yellow label: also from Part 77 of this chapter, except tures containing no other hazardous * * * * * § 77.817, and Part 197 of this chapter. additives and containing less than 50 (b) Pyroxylin plastics in manufacWhen for transportation by water, percent chlorate are exempt from specifi tured articles or articles made there strong wooden or fiberboard packages cation packaging, marking, and labeling from is not subject to Parts 71-78 and 197 containing inside containers of metal requirements when offered for transpor of this chapter. not over five pounds capacity each are tation by rail freight or highway and exempt from specification packaging packed in accordance with subpara 9. In § 73.201, amend the introductory only. text of paragraph (b) (19 F. R. 1278, Mar. graphs (1), (2), and (3) of this para 6, 1954) (49 CFR 1950 Rev., 1954 Supp., 13. Amend § 73.220, paragraph (c)graph. Shipments for transportation by 73.201) to read as follows: (19 F. R. 8527, Dec. 14, 1954) (49 CFR highway carriers are exempt also from 1950 Rev., 1954 Supp., 73.220) to read as Part 77 of this chapter, except § 77.817 § 73.201 Rubber scrap, rubber buffings, follows: and Part 197 of this chapter. reclaimed rubber, or regenerated rub- * * * * * her. * * * § 73.220 Magnesium scrap (borings, clippings, shavings, sheets, or turnings). (d) Chlorate and borate mixtures or (b) Rubber scrap, reclaimed rubber, * * * chlorate and magnesium chloride mix or regenerated rubber are not subject (c) Magnesium scrap consisting oftures containing 25 percent or less chlo to Parts 71-78 and 197 of this chapter rate and no other hazardous additives are if shipped in the following forms: clippings or scrap sheets in closed metal drums, wooden barrels, or wooden boxes not subject to the regulations in Part * . * * * * is exempt from specification packaging, 71-78 and 197 of this chapter. 10. Amend § 73.207, paragraphs (c), marking, and labeling requirements. (d), and (e) (15 F. R. 8311, Dec. 2, 1950) SUBPART E—ACIDS AND OTHER CORROSIVE Shipments for transportation by high liquids; definition and preparation (18 F. R. 3135, June 2, 1953) (49 CFR way carriers are exempt also from Part 1950 Rev., 1954 Supp., 73.207) to read as 77 of this chapter, except § 77.81^, and 1. Amend § 73.244, paragraph (a) (19 follows: Part 197 of this chapter. F. R. 1279, Mar. 6, 1954) (15 F. R. 8313, § 73.207 Sulfide of sodium or sulfide Dec. 2, 1950) (49 CFR 1950 Rev., 1954 14. Amend § 73.223, paragraph (b) Supp., 73.244) to read as follows: of potassium, fused or concentrated, (16 F. R. 5325, June 6, 1951) (49 CFR vbhen ground. * * * 1950 Rev., 1954 Supp., 73.223) to read as § 73.244 Exemptions for acids and (c) Sulfide of potassium, crystallized, follows: other corrosive liquids. Acids and other is not subject to Parts 71-78 and 197 of corrosive liquids, except those enumer this chapter. § 73.223 Peracetic acid. * * * ated in paragraph (c) of this section, in (d) Sodium sulfide when shipped fused (b) Peracetic acid solutions not ex inside bottles having a capacity not over in one solid mass in a metal barrel or ceeding 40 percent strength packed in 1 pound or 16 ounces by volume each in drum and sodium sulfide, crystallized, strong wooden or fiberboard boxes, with closed in a metal can in the outside con are not subject to Parts 71-78 and 197 not more than one inside glass container tainer are, unless otherwise provided, of this chapter. not exceeding 1 pint or 1 pound capacity, exempt from specification packaging, (e) Sodium sulfide containing 35 per cushioned with sterile absorbent cotton marking, and labeling requirements, ex cent or more combined water by weight, or other cushioning material which will cept that marking name of contents on fused or concentrated but not ground not react with the contents to generate outside container is required for ship (may be chipped, flaked, or broken), heat, and with such cushioning material ments via carrier by water. Shipments when packed in steel barrels or drums in sufficient quantity to completely ab for transportation by highway carriers that are equipped with moisture-tight sorb the contents of the bottle are ex are exempt also from Part 77 of this closures, is not subject to Parts 71-78 empt from specification packaging, chapter, except § 77.817 and Part 197 of and 197 of this chapter. marking other than name of contents, this chapter. and labeling requirements. Shipments 11. Amend § 73.212, paragraph (a) (15 * * * * « for transportation by highway carriers 2. Amend § 73.249, paragraph (c) (15 P. R. 8311, Dec. 2, 1950) (49 CFR 73.212, are exempt also from Part 77 of this 1950 Rev.) to read as follows: F. R. 8314, Dec. 2, 1950) (49 CFR 73.249, chapter, except § 77.817 and Part 197 of 1950 Rev.) to read as follows: § 73.212 Trinitrobenzene and trini this chapter. trotoluene, wet. (a) Trinitrobenzene 15. Amend § 73.226, paragraph (b) (18 § 73.249 Alkaline corrosive liquids, and trinitrotoluene, wet with not less F. R. 3135, June 2, 1953) (49 CFR 1950 ». o. s., alkaline caustic liquids, ». o. s., than 10 percent water, in quantity not Rev., 1954 Supp., 73.226) to read as fol and alkaline battery fluids. * * * exceeding 16 ounces in one outside pack (c) Inside containers of not more than lows: 8-fluid ounces capacity each, resistant to age, may be shipped as drugs, medicines, § 73.226 Thorium metal, powdered. or chemicals, when in glass bottles se * * * lading, packed in strong outside con curely stoppered, each bottle inclosed in tainers, and cushioned with absorbent (b) Thorium metal powder packed in material in sufficient quantity to com a strong fiber carton properly cushioned tightly and securely closed metal cans, m the outside shipping case and are not cushioned with incombustible material pletely absorb liquid contents in the subject to any other requirement of in strong outside wooden or fiberboard event of breakage, are exempt from spec Parts 71-78 and 197 of this chapter. boxes, and not exceeding 4 ounces net ification packaging, marking, and label 12. Amend § 73.217, paragraph (b) weight in one outside shipping container, ing requirements, except that marking <19 F. R. 1278, Mar. 6, 1954) (49 CFR is exempt from specification packaging, name of contents on outside container 1950 Rev., 1954 Supp., 73.217) to read marking, and labeling requirements, ex is required for shipments via carrier by as follows: cept that marking name of contents on water. Shipments for transportation by outside container is required for ship highway carriers are exempt also from § 73.217 Calcium hypochlorite com ments via carrier by water. Shipments pounds, dry, and lithium hypochlorite Part 77 of this chapter, except § 77.817, for transportation by highway carriers and Part 197 of this chapter. compounds, dry. * * * are exempt also from Part 77 of this (b) strong outside wooden or fiber- chapter, except § 77.817 and Part 197 of 3. In § 73.250, amend the introductory board packages containing inside con this chapter! text of paragraph (a) (18 F. R. 803, Feb. 366 RULES AND REGULATIONS
7, 1953) (49 CFR 1950 Rev., 1954 Supp., § 73.263 Hydrochloric (muriatic) acid, (e) Shipments by tank motor vehicle 73.250) to read as follows: hydrochloric (muriatic) acid mixtures, are not subject to any other requirement hydrochloric (muriatic) acid solution, of Parts 71-78 and 197 of this chapter. § 73.250 AutomoW.es or other self- inhibited, and sodium chlorite solution. propelled vehicles, engines or other me * * * 11. Amend § 73.279, paragraph (b) (15 chanical apparatus. (a) Automobiles and F.*R. 8322, Dec. 2, 1950) (49 CFR 73.279, (b) * * * 1950 Rev.) to read as follows: other self-propelled vehicles equipped (2) Inside containers of not more than with electric storage batteries, wet, or 8-fluid ounces capacity each, resistant § 73.279 Anisoyl chloride. * * * with electric storage batteries, wet, re to lading, packed in strong outside con (b) Inside containers of not more moved from vehicles; and electric stor tainers, and cushioned with absorbent than 8-fluid ounces capacity each, resist age batteries, wet when included in material in sufficient quantity to com ant to lading, packed in strong outside carload or truckload shipments of auto pletely absorb liquid contents in the containers, and cushioned with absorb mobile parts or assembled material in event of breakage, are exempt from ent material in sufficient quantity to accordance with subparagraphs (a) (1), specification packaging, marking, and completely absorb liquid contents in the (2), and (3) are exempt from specifica labeling requirements, except that mark event of breakage, are exempt from tion packaging, marking, and labeling ing name of contents on outside con specification packaging, marking, and requirements. Shipments for transpor tainer is required for shipments via car labeling requirements, except that mark tation by highway carriers are exempt rier by water. Shipments for transporta ing name of contents on outside con also from Part 77 of this chapter, except tion by highway carriers are exempt also tainer is required for shipments via § 77.817, and Part 197 of this chapter. from Part 77 of this chapter, except carrier by water. Shipments for trans (See also § 73.257 (b).) § 77,817, and Part 197 of this chapter. portation by highway carriers are exempt * * * * * * * * * * also from Part 77 of this chapter, except 4. In § 73.257, amend the introductory 8. Amend § 73.266, paragraph (e) (18 § 77.817, and Part 197 of this chapter. text of paragraph (b) (19 F. R. 3260, F. R. 5272, Sept. 1, 1953) (49 CFR 1950 12. In § 73.286, amend the introduc June 3, 1954) (49 CFR 1950 Rev„ 1954 Rev., 1954 Supp., 73.266) to read as tory text of paragraph (b) (15 F. R. 8323, Supp., 73.257) to read as follows: follows: Dec. 2, 1950) (49 CFR 73.286, 1950 Rev.) § 73.257 Electrolyte (.acid) or corro § 73.266 Hydrogen peroxide solution to reafl as follows: sive battery fluid. * * * in water. * * * § 73.286 Chemical kits. * * * (b) Shipments of electrolyte (acid) (e) Hydrogen peroxide solution in (b) Chemical kits containing acids in or corrosive battery fluid with vehicles water not exceeding 52 percent hydrogen inside containers not exceeding 6 fluid offered for transportation by, for, or to peroxide by weight, when shipped in ounces capacity each and complying with the Departments of the Army, Navy, or tank cars, tank motor vehicles, or port all of the following requirements, are Air Force of the United States Govern able tanks in carload or truckload quan exempt from specification packaging, ment are exempt from Parts 71-78 and tities only, is not subject to any other marking other than name of contents, 197 of this chapter when packed as requirement of Parts 71-78 and 197 of and labeling requirements. Shipments follows: this chapter. * * * * * for transportation by highway carriers * * * * * are exempt also from Part 77 of this 5. Amend § 73.260, paragraph (d) (15 9. Amend § 73.272, paragraph (b) (15 chapter, except § 77.817 and Part 197 of F. R. 8316, Dec. 2, 1950) (49 CFR 73.260, F. R. 8321, Dec. 2, 1950) (49 CFR 73.272, this chapter. 1950 Rev.) to read as follows: 1950 Rev.), to read as follows: lie * ♦ ♦ ♦ § 73.260 Electric storage batteries, § 73.272 Sulfuric acid. * * * SUBPART F— COMPRESSED GASES ; DEFINITION wet. * * * (b) Sulfuric acid solutions of not over AND PREPARATION (d) Electric storage batteries, contain25 percent concentrations, in inside con 1. In § 73.302, amend the introductory ing electrolyte or corrosive battery fluid, tainers of not more than 8 ounces ca text of paragraph ^a) (18 F. R. 3136, of the nonspillable . type, protected pacity each, resistant to the lading, June 2, 1953) (49 CFR 1950 Rev., 1954 against short circuits and • completely packed in strong outside containers and Supp., 73.302) to read as follows: and securely boxed are exempt from cushioned with absorbent material in specification packaging, marking, and § 73.302 Exemptions for compressed sufficient quantity to completely absorb gases, (a) Compressed gases, except labeling requirements, except that mark liquid contents in event of breakage, are ing name of contents on outside con poisonous gases as defined by § 73.326 exempt from specification packaging, (a), when in accordance with either sub- tainer is required for shipments via marking, and labeling requirements, ex carrier by water. Shipments for trans paragraphs (1), (2), (3), (4), (5), or (6) cept that marking name of contents on of this paragraph, are exempt from spec portation by highway carriers are ex outside container is required for ship empt also from Part 77 of this chapter, ification packaging, marking, and label ments via carrier by water. Shipments ing requirements, except that marking except § 77.817 and Part 197 of this for transportation by highway carriers chapter. name of contents on outside container is * * • * * are exempt also from Part 77 of this required for shipments via carrier by chapter, except § 77.817, and Part 197 of water. Shipments for transportation by 6. In § 73.261, amend the introductory this chapter. highway carriers are exempt also fr°jh text of paragraph (b) (15 F. R. 8316, Dec,. * * • * * Part 77 of this chapter, except § 77.817 2, 1950) (49 CFR 73.261, 1950 Rev.) to 10. Amend § 73.277, paragraphs (d) and Part 197 of this chapter. read as follows: and (e) (15 F. R. 8322, Dec. 2, 1950) (49 * - * * * * § 73.261 Fire-extinguisher charges. CFR 73.277,1950 Rev.) to read as follows: 2. Amend § 73.303, paragraphs (a)* * * * § 73.277 Hypochlorite solutions. * * * and (b) (19 F. R. 6268, 6269, Sept. 29, (b) Fire-extinguisher charges as de (d) Glass or earthenware containers1954) (49 CFR 1950 Rev., 1954 Supp-, scribed in subparagraphs (1) to (3) of of not more than 4-fluid ounces capacity 73.303) to read as follows: this paragraph are exempt from specifi each, packed in strong outside contain § 73,303 Truck bodies or trailers on cation packaging, marking, and labeling ers, and cushioned with absorbent mate flat cars; automobiles, motorcycles, trac requirements, except that marking name rial in sufficient quantity to completely tors, or other self-propelled vehicles. of contents on outside container is re absorb liquid contents in the event of (a) Truck bodies or trailers with auto quired for shipments via carrier by breakage, are exempt from specification matic heating or refrigerating equiP" water. Shipments for transportation by packaging, marking, and labeling re ment of the gas burning type may oe highway carriers are exempt also from quirements, except that marking name shipped with fuel tanks filled and e^mp- Part 77 of this chapter, except § 77.817, of contents on outside container is re ment operating or inoperative, wbe and Part 197 of this chapter. quired for shipments via carrier by water. used for the transportation of other * * * * • Shipments for transportation by high freight and loaded on flat cars as part 7. Amend § 73.263, paragraph (b) (2) way carriers are exempt also from Part of a joint rail-highway movement, pro (15 F. R. 8317, Dec. 2, 1950) (49 CFR 77 of this chapter, except § 77.817, and vided the equipment and fuel supply are 73.263,1950 Rev.) to read as follows: Part 197 of this chapter. of a type approved by the Bureau of EX- Thursday, January 19, 1956 FEDERAL REGISTER 367 plosives. The heating or refrigerating ditions are exempt from specification other than as specified in § 73.377 (e); in units are exempt from specification packaging, marking, and labeling re tightly closed inside containers, securely packaging, marking, and labeling re quirements, except that marking name of cushioned when necessary to prevent quirements in this service and shall be contents on outside container is required breakage and packed as follows, are ex considered as carriers equipment but not for shipments via carrier by water. empt from specification packaging, as shipments. Shipments for transportation by highway marking, and labeling requirements, ex (b) Automobiles, motorcycles, traccarriers are exempt also from Part 77 of cept that marking name of contents on tors, or other self-propelled vehicles, this chapter, except § 77.817," and Part outside container is required for ship equipped with liquefied petroleum gas or 197 of this chapter. ments via carrier by water. Shipments other fuel tanks, provided such tanks ***** for-transportation by highway carriers are securely closed, are exempt from SUBPART G— POISONOUS ARTICLES; DEFINI are exempt also from Part 77 of this specification packaging, marking, and TION AND PREPARATION chapter, § 77.817, and Part 197 of this labeling requirements, except that mark chapter. ing name of contents on outside con 1. In § 73.345, amend the introductory * * * * * tainer is required for shipments via car text of paragraph (a) (19 F. R. 1280, Mar. 6, 1954) (49 CFR 1950 Rev., 1954 Supp., 4. In § 73.370, amend the introductory rier by water. Shipments for transpor text of paragraphs (b) and (d) (18 F. R. tation by highway carriers are exempt 73.345) to read as follows: 804, Feb. 7,1953) (49 CFR 1950 Rev., 1954 also from Part 77 of this chapter, except § 73.345 Exemptions for poisonous Supp., 73.370) to read as follows: §77.817 and Part 197 of this chapter. liquids, class B. (a) Poisonous liquids, When offered for transportation by car class B, as defined in § 73.343, except § 73.370 Cyanides, or cyanide mix riers by rail freight or highway, drainage those as enumerated in paragraph (b) of tures, except cyanide of calcium and mix of fuel tanks is not required.K When of this section, or as provided for in § 73.359 tures thereof. * * * fered for transportation by rail express, (c), in tightly closed inside containers, (b) Cyanides, except cyanide of cal fuel tanks must have been emptied and securely cushioned when necessary to cium and mixtures thereof; exemptions. securely closed. prevent breakage and packed as follows, Cyanides, except cyanide of calcium and aye exempt from specification packaging, mixtures thereof (see paragraph (d) of 3. In § 73.310, amend the introductory this section), when packed and described text of paragraph (a) (15 P. R. 8327, Dec. marking, and labeling requirements, ex cept that marking name of contents on as follows are exempt from specification 2, 1950) (49 CFR 73.310, 1950 Rev.) to packaging and labeling requirements. read as follows: outside container is required for ship ments via carrier by water. Shipments Shipments for transportation by high § 73.310 Fire extinguishers and com for transportation by highway carriers way carriers are exempt also from Part ponent parts thereof, (a) Fire extin are exempt also from Part 77 of this 77 of this chapter, except § 77.817, and guishers and component parts thereof Part 197 of this chapter. chapter, except § 77.817 and Part 197 of * * * * * containing nonliquefied gas for the pur this chapter. pose of expelling fire extinguishing con ***** (d) Cyanide of calcium and mixtures tents, when shipped under the following 2. Amend § 73.359, paragraph (c). (17 thereof; exemptions. Cyanide of cal conditions are exempt from specification F. R. 4295, May 10, 1952) (49 CFR 1950 cium and mixtures thereof when packed packaging, marking, and labeling re Rev., 1954 Supp., .73.359) to read as and described as follows are exempt from quirements, except that marking name follows: specification packaging and labeling re of contents on outside container is re quirements. Shipments for transporta quired for shipments via carrier by water. § 73.359 Hexaethyl tetraphosphate tion by highway carriers are exempt also Shipments for transportation by high mixtures, methyl parathion mixtures, from Part 77 of this chapter, except way carriers are exempt also from Part parathion mixtures, tetraethyl dithio § 77.817, and Part 197 of this chapter. 77 of this chapter, except § 77.817, and pyrophosphate mixtures, and tetraethyl ***** Part 197 of this chapter. pyrophosphate mixtures, liquid.. * * • 5. Amend § 73.377, paragraph (e) (18 * * • • * (c) Hexaethyl tetraphosphate mixF. R. 5273, Sept. 1, 1953) (49 CFR 1950 4. In § 73.313, amend the introductory tures, methyl parathion mixtures, para Rev., 1954 Supp., 73.377) to read as text of paragraph (a), and the introduc thion mixtures, tetraethyl dithio pyro follows: phosphate mixtures, and tetraethyl tory text of paragraph (b) (15 P. R. 8327, § 73.377 Hexaethyl tetraphosphate 8328, Dec. 2,1950) (20 P. R. 951, 952, Peb. pyrophosphate m ixtu res (solutions, emulsions, or emulsifiable liquids) con mixtures, methyl parathion mixtures, 15, 1955) (49 CFR 73.3.3, 1950 Rev.) to parathion mixtures, tetraethyl dithio read as follows: taining riot more than 25 percent hexa ethyl tetraphosphate, methyl parathion, pyrophosphate mixtures, and tetraethyl § 73.313 Refrigerating machines and parathion, tetraethyl dithio pyrophos pyrophosphate mixtures, dry. * * * hydraulic accumulators, (a) Refrigerat phate, or tetraethyl pyrophosphate by (e) Dry mixtures containing not more ing machines of the self-contained type weight, in inside metal containers not than 2 percent by weight of hexaethyl containing not over 50 pounds of gas in over 8-fluid ounces capacity each, packed tetraphosphate, methyl parathion, para each pressure vessel and containing not in strong outside containers together thion, tetraethyl dithio pyrophosphate, more than two charged pressure vessels, with sufficient absorbent material to or tetraethyl pyrophosphate, and in refrigerating machines of the remote- completely absorb the liquid in the event which the liquid is absorbed in an inert control type consisting of separate units of leakage, are exempt from specifica material, are exempt from specification shipped separately and each containing tion packaging, marking, and labeling packaging, marking, and labeling re not over 25 pounds weight of gas, or other requirements. Shipments for transpor quirements. Shipments for transporta similar apparatus assembled for ship tation by highway carriers are exempt tion by highway carriers are exempt also ment containing not over 15 pounds also from Part 77 of this chapter, except from Part 77 of this chapter, except weight of gas or liquid for their operation, § 77.817, and Part 197 of this chapter. § 77.817, and Part 197 of this chapter. when shipped under the following condi • tions are exempt from specification 3. In § 73.364, amend the introduc 6. In § 73.392, amend the introductory Packaging, marking, and labeling re tory text of paragraph (a) (19 F. R. 1280, text of paragraph (a), and entire para quirements, except that marking name 1281, Mar. 6, 1954) (49 CFR 1950 Rev. graph (b) (15 F. R. 8339, Dec. 2, 1950) of contents on outside container is re 1954 Supp., 73.364) to read as follows: (20 F. R. 952, Feb. 15, 1955) (49 CFR quired for shipments via carrier by water. § 73.364 Exemptions for poisonous 73.392, 1950 Rev.) to read as follows: Shipments for transportation by high way carriers are exempt also from Part solids, class B. (a) Poisonous solids, § 73.392 Exemptions for radioactive 2* this chapter, except § 77.817, and class B, except beryllium metal powder; materials, (a) Radioactive materials Part 197 of this chapter. cyanides, other than as specified in are exempt from prescribed packaging, * • • • • § 73.370 (b). and (d) ; hexaethyl tetra marking, and labeling requirements pro (b) Hydraulic accumulators and com phosphate mixtures, methyl parathion vided they fulfill all of the conditions in ponent parts thereof containing nonliq- mixtures, parathion mixtures, tetraethyl subparagraphs (1), (2), and (3) of this uefled gas for the purpose of operation dithio pyrophosphate mixtures, and paragraph. Shipments for transporta when shipped under the following con tetraethyl pyrophosphate m ixtu res, tion by highway carriers are exempt also 368 RULES AND REGULATIONS from Part 77 of this chapter, except tion at any surface of the package is less load lots or when transported by private § 77.817 and Part 197 of this chapter. than 10 milliroentgens in 24 hours. Ship motor carrier provided the gamma radi * * * * * ments for transportation by highway car ation at any readily accessible surface (b) Manufactured articles other than riers are exempt also from Part 77 of this of the units when prepared for shipment liquids, such as instrument or clock dials chapter, except § 77.817, and Part 197 does not exceed 50 milliroentgens in 24 or electronic tubes and apparatus, of of this chapter. hours. Shipments for transportation by which radioactive materials are a com (1) Switchboard or similar apparatushighway carriers are exempt also from ponent part, and luminous compounds, containing electronic tubes, of which ra Part 77 of this chapter, except I 77.817, when securely packed in strong outside dioactive materials are a component and Part 197 of this chapter. containers are exempt from specification part, are exempt from specification pack ***** packaging, marking, and labeling re aging, marking, and labeling require [P. R. Doc, 55-415; Piled, Jan. 18, 1956; quirements provided the gamma radia ments when shipped in carload or truck 8:49 a. m.]
PROPOSED RULE MAKING
DEPARTMENT OF AGRICULTURE of the Rocky Mountains and may in material other than barley which can be clude not more than 10 percent of Black removed readily from the barley by the Agricultural Marketing Service Barley or of barley of the class Western use of appropriate sieves and cleaning Barley, either singly or in any combi devices; also underdeveloped, shriveled, [ 7 CFR Part 26 1 nation. This class shall be divided into and small pieces of barley kernels re B a r l e y the following three subclasses: moved in properly separating the ma (1) Malting Barley. The subclass terial other than barley and which OFFICIAL GRAIN STANDARDS OF THE Malting Barley shall be six-rowed barley cannot be recovered by properly re UNITED STATES of the class Barley which has 90 per screening or recleaning. Notice is hereby given that the United cent or more of the kernels with white (h) Sound barley. Sound barley shall States Department of Agriculture has endosperms, which is not semi-steely in be kernels and pieces of kernels of barley under consideration a proposed revision mass; which, after the removal of dock remaining after the removal of dockage, of the official grain standards of the age, contains not more than 5 percent which are not damaged or materially dis United States for barley (7 CFR 26.201 of two-rowed and/or other types or va colored by blight and/or mold, which are et seq.) promulgated under the authority rieties of barley of unsuitable malting not heat damaged, sprouted, malted, of the United States Grain Standards type such as Trebi, 4.0 percent damaged frosted, badly ground damaged, badly Act, as amended (39 Stat. 482; 54 Stat. kernels, 10.0 percent skinned a n d weather damaged, or otherwise materi 765; 7 U. S. C. 71etseq.). broken kernels, 15 percent thin barley, ally damaged. Upon recommendation of a special 2.0 percent black barley, and 5.0 percent (i) Damaged barley. Damaged barley committee appointed by its Directors, the other grains; which has a minimum test shall be kernels and pieces of kernels of Minneapolis Grain Exchange has re weight per bushel of 43 pounds; which barley which are damaged or materially quested that consideration be given to contains a minimum of 90 percent discolored by blight and/or mold, or changes in the official grain standards sound barley; which does not contain which are heat damaged, sprouted, of the United States for barley designed barley injured by frost, heat, or mold; malted, frosted, badly ground damaged, to emphasize malting quality. Other and which is not smutty, garlicky, weev- badly weather damaged, or otherwise changes^ proposed for consideration ily, ergoty, or bleached; and which materially damaged. would improve the quality represented otherwise meets the requirements of (j) Heat-damaged kernels. Heat- by the grades for barley for other pur grades Nos. 1 to 3 of the subclass damaged kernels shall be kernels and poses by increasing the percentage of Barley. pieces of kernels of barley, other grains, sound barley and limiting the allowable (2) Blue Malting Barley. The sub and wild oats, which have been materi percentages of thin barley in each of the class Blue Malting Barley shall be six- ally discolored and damaged by external grades. No changes are proposed in the rowed barley of the class Barley which heat or as a result of heating caused by grade specifications for Western Barley has 90 percent or more of the kernels fermentation. and the requirements for the special with blue endosperms, and which other ■ (k) Foreign material. Foreign mate grades for two-rowed barley and the wise meets the requirements of the sub rial shall, be all matter other than barley, other special grades. The class Black class Malting Barley. other grains, and wild oats, which is not Barley would be eliminated. (3) Barley. The subclass Barley shall separated from the barley in the proper It is proposed that the changes be in be any barley of the class Barley which determination of dockage. corporated in the official grain standards does not meet the requirements of the (l) Other grains. Other grains shall of the United States for barley by re subclass Malting Barley, or Blue Malting be wheat, rye, oats, corn, grain sorghums, vising said standards to read essentially Barley. hull-lease barley, flaxseed, emmer, spelt, as follows: (d) Western Barley. The class West einkorn, Polish wheat, poulard wheat, ern Barley shall be any white (glumes) § 26.201 Terms defined. For the pur cultivated buckwheat, and soybeans. barley grown west of the Great Plains (m) Wild oats. Wild oats shall be poses of the official grain standards of area of the United States and may in the United States for barley: seeds of Avena fatua and A. sterilis. clude not more than 10 percent of (n) Wild brome grasses. Wild brome (a) Barley. Barley shall be any grain, Black Barley or of barley of the class grasses shall be the seeds of any of the which, before the removal of dockage, Barley, either singly or in any brome grasses which have harsh awns consists of 50 percent or more of barley, combination. which are injurious when fed to livestock. and may contain not more than 25 per (e) Mixed Barley. The class Mixed cent of other grains for which stand (o) Broken kernels. Broken kernels Barley shall be any mixture of barley shall be pieces of barley kernels. ards have been established under the which does not meet the requirements of United States Grain Standards Act. (p) Skinned kernels. Skinned kernels the classes Barley or Western Barley. shall be any barley kernels from which The term “barley” as used in these Black Barley shall be classified as Mixed standards shall not include hull-less Barley. one-third or more of the hull has been barley. (f) Grades. Grades shall be the removed, or which has the hull loosened (b) Classes. Barley shall be divided numerical grades, Sample grade, and or removed over the germ. into the following three classes: Barley, special grades provided for in § 26.203. (q) Black barley. Black barley shall Western Barley, and Mixed Barley. (g) Dockage. Dockage shall be weed be barley with black glumes. (c) Barley. The class Barley shall be seeds, weed stems, chaff, straw, grain (r) Thin barley. (1) Thin barley in any white (glumes) barley grown east other than barley, sand, dirt, and any the class barley shall be barley and other Thursday, January 19, 1956 FEDERAL REGISTER 369 matter that will pass readily through a Minimum limits 5/64 x 3/4 sieve. of— Maximum limits of— (2) Thin barley in the class Western Barley shall be barley and other mat Grade Heat dam ter that will pass readily through a Test aged kernels weight Sound Total (barley, other Foreign Broken Thin Black 5>/2/64 x 3/4 sieve. per barley damaged grains, and material kernels barley barley (s) Stones. Stones shall be concreted bushel wild oats) earthy or mineral matter and other sub stances of similar hardness that do not Pounds Percent Percent Percent Percent Percent Percent Percent disintegrate readily in water. i ______-_____ 47 97 2.0 0.2 1.0 5 10 0.5 2...... 45 94 4.0 .3 2.0 • 10 15 1.0 (t) 5/64 by 3/4 sieve. A 5/64 by 3/4 3...... 43 90 6.0 .5 3.0 15 25 2.0 sieve shall be a metal sieve 0.032 inch 4 1 __ - ___ 40 80 8.0 1.0 4.0 20 50 5.0 6...... 36 70 10.0 3.0 6.0 30 100 10.0 thick perforated with slotted perfora Sample grade...... Sample grade shall include barley of the class barley, which does not come within the tions 0.0781 (%4> by 0.750 (%) inch with grade requirements of any of the grades from No. 1 to No. 5, inclusive; or which-con tains more than 16.0 percent of moisture; or which contains stones; or which is musty, or approximately 865 perforations per sour, or heating; or which has any commercially objectionable foreign odor except of square foot. smut or garlic; or which contains a quantity of smut so great that any one or more of (u) 9/64 by 3/4 sieve. A 9/64 by 3/4 the grade requirements cannot be applied accurately; or which is otherwise of dis slotted sieve shall be a metal sieve 0.032 tinctly low quality. inch thick perforated with slotted per forations 0.1406 (%4> inch by 0.750 (%) 1 Barley that is badly stained or materially weathered, shall not be graded higher than No. 4. inch with approximately 590 perfora (b) Grades and grade requirements for the subclass Malting barley and Blue tions per square foot. Malting barley of the class Barley. (See also paragraph (g) of this section.) (v) 5/64 triangular sieve. A 5/64 tri angular sieve shall be a metal sieve 0.032 Minimum limits inch thick with equilateral triangular of— Maximum limits of— perforations, the inscribed circles of which are 0.0781 (%4> inch with approx Grade Test Skinned weight Sound Damaged Foreign ' and Thin Black Other imately 2,845 perforations per square per barley . kernels material broken barley barley grains foot. bushel kernels (w) 5V2/64 by 3/4 sieve. A 5^ /64 x 3/4 sieve shall be a metal sieve 0.032 inch Pounds Percent Percent Percent Percent Percent Percent Percent thick perforated with slotted perfora 1...... 47 97 2.0 1.0 4.0 7.0 0.5 2.0 2...... 45 94 3.0 2.0 7.0 10.0 1.0 3.0 tions 0.0858 (51/4/64) inch by 0.75 (%) 3...... 43 90 4.0 3.0 10.0 15.0 2.0 5.0 inch with approximately 856 perfora tions per square foot. N o t e : Barley of the class Barley which does not meet the requirements of any of the grades § 26.202 Principles governing the ap 1 to 3 for the subclass Malting barley and Blue Malting barley shall be classified and graded plication of the standards. The follow according to the grade requirements for the subclass Barley. ing principles shall apply in the deter (c) Grades and grade requirements for Western barley. (See also paragraph (g) mination of the classes and grades of of this section.) barley: 2.0 percent, and 3.0 percent in grades No, This public hearing is for the purpose II price for milk containing four per 1, No. 2, and No. 3, respectively; also to of receiving evidence with respect to cent butterfat and the price obtained by ¿x maximum limits of “Total Foreign economic and marketing conditions multiplying by 8.2 the average of the Material and Wild Oats” at 1.0 percent, which relate to the handling of milk in daily prices paid per pound of cheese at 2.0 percent, and 3.0 percent in grades the Austin-Waco, Texas, marketing area Wisconsin Primary markets (‘Cheddars’ Nos. 1,2, and 3, respectively, with special and to emergency conditions related to f. o. b. Wisconsin assembling points, cars limits of 0.5 percent, 0.7 percent, and 1.0 the proposal listed below or appropriate or truckloads) as reported by the De percent for “Inseparable weed seeds” modifications thereof. partment during the month.” within these totals, in lieu of the stated The amendments to the order (No. (Sec. 5, 49 Stat. 753, as amended; 7 U. S. C. limits on Foreign material alone. 52), as amended, were proposed by the 608c) Mid-Tex Milk Producers Association: The United States Grain Standards Copies of this notice of hearing may be Act requires that public notice be given Amend Order No. 52 to provide that a cheese credit be added to the present or procured from the market administrator, of the modification of standards adopted 6619 Denton Drive, Dallas 19, Texas, or under its provisions not less than 90 days der whenever needed, such cheese price to be arrived at by taking the difference from the Hearing Clerk, Room 112, Ad in advance of the effective date of such ministration Building, United States De modification. If revised standards for between 8.50 times the Wisconsin pri mary cheese markets and the Class II partment of Agriculture, Washington 25, barley are promulgated,they should be D. C., or may be there inspected. effective July 1,1956. price under the present order, such dif Pursuant to the provisions of section 4 ference to be subtracted from the current Dated: January 16, 1956. of the Administrative Procedure Act (5 Class II price. [seal] R oy W. Lennartson, U. S. C. 1003), an informal public hearing (Sec. 5, 49 Stat. 753, as amended; 7 U. S. C. Deputy Administrator. wiU be held on February 23, 1956 at 2:00 608c) p. m., in Room 100, Minneapolis Grain [F. R. Doc. 56—438f Filed, Jan. 18, 1956; Exchange Building, Minneapolis, Min Copies of this notice of hearing may be 8:53 a. m.j nesota, at which interested parties may procured from the market administrator, submit their views and opinions orally or 221 East 11th Street, Austin 1, Texas, or in writing with respect to the desirability from the Hearing Clerk, Room 112, Ad FEDERAL COMMUNICATIONS of promulgating the proposed changes. ministration Building, United States De COMMISSION Written data, views, or arguments may partment of Agriculture, Washington 25, also be submitted to the Director, Grain D. C., or may be there inspected. [ 47 CFR Part 3 ] Division, Agricultural Marketing Service, Dated: January 16,1956. [Docket No. 11280; FCC 56-45] United States Department of Agricul ture, Washington 25, D. C., to be received [seal] R oy W. Lennartson,' T elevision B roadcast S tations Deputy Administrator. by him not later than March 10, 1956. TABLE OF ASSIGNMENTS Consideration will be given to all infor [F. R. Doc. 56-437; Filed, Jan. 18, 1956; mation obtained at the hearing, to writ 8:53 a. m.] In the matter of amendment of § 3.606 ten data, views, and arguments received Table of assignments, rules governing by the Director not later than March 10, Television Broadcast Stations. 1956, and to other information available 1. The Commission has before it for in the United States Department of Agri [ 7 CFR Part 982 ] consideration its Notice of Further Rule culture before a decision is made as to Making and Orders to Show Cause issued what revisions, if any, shall be promul [Docket No. AO 238-A5] in this proceeding on September 1, 1955 gated.-- - Milk in Central W est T exas Marketing (FCC 55-893). By that Notice it was proposed to amend the television Table B. W. Whitlock, Grain Division, Agri Area cultural Marketing Service, is hereby of Assignments so as to shift Channel designated to conduct this hearing. In NOTICE OF HEARING ON PROPOSED AMEND 45 from New Castle, Pennsylvania, to case this designee is unable to conduct MENT TO TENTATIVE MARKETING AGREE Youngstown, Ohio, by one of three al the hearing, any other officer of the De MENT AND TO ORDER, AS AMENDED, ternative methods, all of which would partment designated by the Director, REGULATING HANDLING require other changes in the television Grain Division, Agricultural Marketing Pursuant to the Agricultural Market Table of Assignments. The Notice was Service, is hereby authorized to conduct ing Agreement Act of 1937, as amended issued in response to a request by WKST, such hearing. (7 U. S. C. 601 et seq.), and in accord Inc., permittee of Station WKST-TV on Channel 45 in New Castle. Since there Issued this 16th day of January 1956. ance with the applicable rules of prac tice and procedure, as amended (7 CFR are outstanding authorizations for sta [seal] R oy W. Lennartson, Part 900), notice is hereby given of a tions on three of the channels proposed Deputy Administrator. public hearing to be held in the Windsor to be changed, Show Cause Orders were [P. R. Doc. 56-439; Filed, Jan. 18, 1956; Hotel, Abilene, Texas, beginning at issued to WKST, Inc. to show why its 8:53 a. m.] 10:00 a. m., January 31, 1956. outstanding authorization for Station This public hearing is for the purpose WKST-TV on Channel 45 in New Castle of receiving evidence with respect to eco should not be modified to specify opera nomic and marketing conditions which tion on Channel 45 in Youngstown; to Golden Triangle Television Corporation [ 7 CFR Part 952 Ï relate to the handling of milk in the Central West Texas marketing area and to show why its outstanding authoriza [Docket No. A0256-A2] to emergency conditions related to the tion for Station WTVQ on Channel 47 at proposal listed below or appropriate Pittsburgh, Pennsylvania, should not be Milk in Austin-W aco T exas, Marketing modified to specify operation on Channel Area modifications thereof. The amendments to the order (No. 82), 22 at Pittsburgh; and to Polan Indus notice of hearing on proposed amend as amended, were proposed by the Cen tries to show why its outstanding au ment to tentative marketing agree tral West Texas Producers Association: thorization for Station WLTV on Chan ment AND TO ORDER, AS AMENDED, REGU Replace the period at the end of nel 51 in Wheeling, West Virginia, should LATING HANDLING § 982.70 with a colon and add the follow not be modified to specify operation on . Pursuant to the Agricultural Market- ing : “And provided further, That from Channel 22 in Wheeling. ing Agreement Act of 1937, as amended the effective daté hereof through August 2. The initial subject of this proceed Y S. C. 601 et seq.), and in accordance 1956, there shall be deducted for each ing involved a petition for rule making with the applicable rules of practice and hundred pounds of producer milk which by WKST, Inc., requesting that Channels Procedure, as amended (7 CFR Part 900) was allocated to Class II pursuant to 45 and 73 be exchanged between New Notice is hereby given of a public hearing § 982.46 and which was either used in Castle and Youngstown and that it be w be held in the Commodore Perry Hotel, the production of Cheddar cheese or as directed to Show Cause why its authori Austin, Texas, beginning at 10:00 a. m., signed to such product pursuant to zation should not be modified to specify February 2,1956. § 982.44 the difference between the Class operation on Channel 45 at Youngstown 372 PROPOSED RULE MAKING rather than New Castle. After consid May 20,1955, WKST, Inc. filed a Petition national and local advertising; and the eration of the comments both in support for Reconsideration offering three new fact that many New Castle viewers and in opposition to the proposal filed in alternative proposals for shifting Chan have adjusted their receivers to receive the proceeding, the Commission on April nel 45 from New Castle to Youngstown. the Youngstown stations rather than 21,1955, issued a Report and Order (FCC These proposals, the subject of this fur WKST-TV because of more attractive 55-491) denying petitioner’s request. On ther proceeding, are as follows: network programs. Petitioner believes P lan I that if it could operate on Channel 45 in Youngstown, it could obtain a basic net work affiliation agreement, attract more City Present Proposed national and local business, and compete more effectively with the other stations 21-, 27, 73—...... 21-, 27, 45-, 73-. 45—1- -- - ...... S3. in the area. It asserts that a substan 2-, 11, 13*-, 16, 47-, 53+;... 2-, 11,13*-, 16, 2», 53+. tial percentage of the new receivers be 12+, 22, 69- ...... 12+, 69-, 79+. ing installed in the Youngstown area are without outside antennas and antenna P lan II rotators, and are incapable ol receiving a signal from its New Castle station; but 21-, 27,73-...... 21-, 27, 45-, 73-. that if it is permitted to operate from New Castle, P a______"______45—1.. I ...... 51+. Youngstown, as proposed, its station 7, 9+, 51+...... 7, 9, 22. 12+, 22, 69—.. . 12+, 69-, 79+. could be received upon such sets, by 37..1..1______62+.1 other receivers with outside antennas adjusted to receive the Youngstown sta P lan III tions, and by receivers in the area equipped with strip tuners to receive its 21—, 27, 73— 21-, 27, 45-, 73-. signal from New Castle. Petitioner also 45--.-1___ 55-. points out that if Channel 45 is shifted 49+, 55*—, 61+ ... 49+, 61*, 71-, to Youngstown and its authorization is modified to permit operation on Chan 1 This plan would require a change in the offset carrier requirement for Frederick, Maryland, from Channel 62 nel 45 in Youngstown, it could commence plus to Channel 62 even. operation with its existing equipment, 3. Comments have been submitted bytion on Channel 22 at Wheeling. Replies with the exception of the supporting WKST, Inc., in support of its proposed to comments were filed by WKST, Inc., structure for the transmitting antenna, amendment. The Greater New Castle the Vindicator Printing Company and with maximum speed and a minimum of Association, the Superintendent of the the WKBN Broadcasting Corporation. cost. It maintains that if it were to use New Castle Public Schools and other per 4. In support of its proposal, petiChannel 73 in Youngstown instead of sons in the Youngstown area filed letters tioner urges that each of the above three Channel 45, considerable additional ex in support of petitioner’s request. Other proposals for reassigning Channel 45 penditure would be required amounting letters supporting petitioner’s proposal from New Castle to Youngstown meets to $31,275 and that, in addition, Chan have been received from Congressman the objections which the Commission nel 73 has been recognized as inferior to Prank M. Clark, Walter A. Kieler, Esq., had to its original proposal to exchange Channel 45 from the standpoint of Mayor Edward A. DeCarbo of New Channels 45 and 73 between the two equipment. Petitioner urges that op Castle; the New Castle Chamber of Com cities. It points out that the substitu erating from Youngstown on Channel merce, and other parties. Comments tion of either Chanel 33, 51 or 55 for 45 it could provide a high quality tech opposing the proposed amendment have Channel 45 in New Castle, as proposed, nical service not only to Youngstown, been filed by WKBN Broadcasting Cor would give the area a channel equally or Warren and Sharon, but over New Castle poration (W K B N-T V ), Youngstown; substantially as good and would provide as well; that only a relatively small area The Vindicator P r i n t i n g Company New Castle with the opportunity of ob of 40 square miles now within the Grade (WFMJ-TV), Youngstown; Community taining a local television station immedi B contour of WKST-TV would be outside Telecasting Com pany, permittee of ately to replace that of WKST-TV. the Grade B contour of its proposed Channel 73 at Youngstown; and WHAR, Petitioner claims that the shifting of Youngstown station and that all of this Inc., (WHAR(AM)), Clarksburg, West Channel 45 to Youngstown, while re area is receiving service from existing Virginia. Letters opposing the proposed sulting in a fourth television assignment stations. The letters filed in support of amendment were received .from the to that area, would not be contra to the the reassignment of Channel 45 to Akron Broadcasting Corporation (WCUE Commission’s assignment principles Youngstown and the modification of (AM)), Akron; the Mahoning Valley since none of the proposals would reduce Station WKST’s authorization to enable Broadcasting C o r p o r a t i o n (WBBW the number of channels available to it to operate as a Youngstown station (AM)), Youngstown; the Youngstown other communities; all of the mileage urge that it would afford a better televi Chamber of Commerce; Mayor Leo Berg separation requirements in the rules sion service to the New Castle area ; that of Akron; Congressman Michael J. Kir- would be complied with; and nine other it would make possible a utilization of win, Congressman Cleveland M. Bailey, cities in the United States smaller in the UHF market developed in the New Senator George H. Bender, the Meadville population than Youngstown are as Castle area by Station WKST-TV, and Broadcasting Service Inc. (WMGW(AM) signed at least four television channels. that it will make available to the New and WMGW-PM), Meadville, the Cham In its Petition for Reconsideration, peti Castle and Youngstown areas a wider se ber of Commerce of Meadville, and the tioner suggested that if four commercial lection of programs. Akron Chamber of Commerce. WKST, UHF channels in Youngstown were 5. Petitioner ^states that the assign Inc. filed a Reply to the Order to Show deemed to be unwarranted, considera ment of Channel 45 to Youngstown can Cause stating that it specifically waived tion should be given to reserving Chan be accomplished without disturbing the the required 30-day notice period and nel 73 in Youngstown for educational number of channels now available to consented to the modification of its out use. Petitioner refers again to the vari other communities. It points out that standing authorization to specify opera ous factors mentioned in its original pe in both Plans I and II, Channel 79 would tion on Channel 45 in Youngstown in tition and Petition for Reconsideration be substituted for Channel 22 in Clarks stead of New Castle. No replies to the to which it attributes its inability to op burg, and that since no applications have Show Cause Orders were filed by the erate successfully at New Castle, i. e., been filed for Channel 22 or the other Golden Triangle Television Corporation the close proximity of New Castle to available UHF channel in Clarksburg, it nor Polan Industries. However, the Youngstown and its relative size; its in does not appear that the community is latter organization on June 7, 1955, filed ability to compete effectively with the now ready to proceed with UHF televi a statement to the effect that it had no two Youngstown stations which are affil sion. Petitioner therefore argues that objection to the modification of its out iated with all the networks and serve the substitution of Channel 79 for 22 standing authorization for S ta tio n the New Castle area; its inability to ob will offer Clarksburg the same opportu WLTV on Channel 51 to specify opera tain sufficient network programs and nities for additional television facilities Thursday, January 19, 1956 FEDERAL REGISTER 373 and service in the future as are now petitioner that it could operate more Youngstown for commercial use would available. While Plan I would also re successfully in Youngstown on Channel contravene Commission policy of reserv quire modification of the authorization 45. The opposing parties maintain that ing one channel for noncommercial edu for Station WTVQ at Pittsburgh to spec there is no basis for this assumption cational use in communities having three ify Channel 22 in place of Channel 47, since the competitive situation in or more assignments and that peti petitioner maintains that there is no Youngstown,is already difficult; will be tioner’s suggestion that Channel 73 in reason for not making the modification come more difficult with the establish Youngstown might be reserved for non since construction has not been com ment of a third station on Channel 73, commercial use has no merit since Com menced on Station WTVQ and Channel and will worsen if a fourth assignment is munity Telecasting Company has now 22 is as good or better than Channel 47 made. They contend that both of the applied for this frequency. Finally, it from a propagation and equipment operating stations in Youngstown have is urged that it would be contrary to the standpoint. With respect to other as incurred operating losses in spite of the intent and purpose of section 316 of the signment changes involved in Plan II, fact that they are connected with estab Communications Act and the Commis petitioner submits that no applications lished AM stations, have excellent tech sion’s past decisions to employ the Show have been filed for Channel 37 in Mead- nical facilities and are affiliated with the Cause Order procedure to enable peti ville, Pennsylvania, nor for Channel *62 two major networks. WFMJ-TV states tioner to become a Youngstown station' in Frederick, Maryland, and that these that its total operating loss exceeds $250,- without following the usual procedure of communities are apparently not ready 000; and Station WKBN-TV states that filing an application and competing with to proceed with television. It contends its operating loss exceeds $165,000. Com all other parties desiring the channel. It that the substitution of Channel 62 for munity Telecasting Company asserts is maintained that there is no reason why 37 in Meadville will afford the commu that the assignment of Channel 45 to petitioner could not have filed a competi nity the same opportunity for local tele Youngstown will mean the death of its tive application for use of Channel 73 if vision service in the future as now proposed operation on Channel 73 and it desired to operate in Youngstown and provided. Plan II would also require the use of Channel 73 in Youngstown for that, if Channel 45 is assigned to modification of the authorization for years to come. Youngstown, there are no public interest Station WLTV in Wheeling to specify 7. The opposing parties further confactors involved which would warrant Channel 22 in place of 51. Petitioner tend that each of the alternative plans denying the applicant for channel 73 in claims that this presents no problem proposed for shifting Channel 45 from Youngstown and other interested parties since the permittee, Polan Industries, New Castle to Youngstown is contrary an opportunity also to apply for the has indicated that it consents to such to Commission policy and precedent, the channel. modification. Petitioner points out that public interest, and, in addition, is tech 8. In its Reply to the opposing com Plan III requires deletion of noncom nically objectionable and would result in ments, WKST, Inc., urges that assign mercial educational Channel 55 from the substitution of higher UHF channels ment of Channel 45 to Youngstown and Akron, Ohio, and the assignment of for lower UHF channels in other com modification of its authorization to per-* Channel 71 to Akron. Petitioner states munities. They urge that no showing mit operation at Youngstown is war that since there are no applications has been made that the lower channels ranted because of public interest factors pending for either Channel 55 or for presently assigned to these communities apart from the relief which would accrue Channel 61, which under Plan II would will not be used in the foreseeable future to it; that granting its request will permit be reserved for noncommercial educa and that the assignment of higher chan restoration and expansion of a television tional use in Akron, and since there is nels to Meadville, Clarksburg' or New service in the area with transmission fa no indication that educational groups or Castle would act as a further deterrent cilities superior to those now authorized; others are ready to proceed with televi to the establishment of local UHF service that its station would be moved further sion on either Channel 55 or 61 in Akron, in these communities. It is submitted away from VHF stations in Pittsburgh, substitution of Channel 71 for Channel that because of equipment problems and Steubenville and Wheeling into an all- 55 and the reservation of Channel 61 greater power requirements, the higher UHF area; that its proposal would for noncommercial use would offer Ak UHF frequencies are at present less de provide an additional service to Youngs ron the same opportunity for noncom sirable than the lower frequencies and town; that it would provide a third net mercial educational and commercial sta that the communities of Meadville, work with a regular affiliate in the tions in the future as are now afforded. Clarksburg and New Castle are smaller Youngstown area; and that it would give 6. The opposing parties urge that thethan Youngstown and therefore less able the public in the Youngstown and New assignment of a fourth television chan to withstand the additional cost of Castle areas an opportunity to receive a nel to Youngstown is unnecessary and higher-band UHF operation. It is as more complete schedule of network pro unwarranted. They point out that the serted that in spite of the fact that the grams, as well as a greater opportunity Youngstown metropolitan area now has permittees of Station WTVQ in Pitts for local self-expression. Petitioner a total of five channels (3 at Youngstown, burgh and Station WLTV in Wheeling states that the effect of its proposed op 1 at Warren, Ohio, and 1 at Sharon, raise no objections to shifting to other eration in Youngstown on the existing Pennsylvania) and that the assignment channels, as proposed in Plan I and H, Youngstown stations cannot be pre of an additional channel to the area it would be contrary to Commission pol dicated; but that, nevertheless, the ulti Would adversely affect the public inter icy to permit the proposed shifts. With mate question is not whether the est by causing economic injury to exist- respect to the changes in channel as Youngstown stations will suffer economic mg television stations and causing the signments proposed for Akron in Plan injury but whether its proposed opera viewing public to suffer through degra m , it is urged that Akron, which is sub tion at Youngstown would serve the pub dation of program service. They state stantially larger than Youngstown, has lic interest. Petitioner also contends that two UHF stations are now operating only two commercial UHF assignments, that there is no merit to the argument on Channels 21 and 27 at Youngstown Channels 49 and 61; that Station that the assignment of Channel 45 to and that a third competing UHF station WAKR-TV operates on Channel 49; that Youngstown would violate the Commis ^ anticipated in view of the fact that a second commercial UHF station oper sion’s assignment principles. It submits Community Telecasting Company had ating on Channel 71, as proposed, rather that assignments are made to cities and hied an application for Channel 73 at than Channel 61, would be under a defi not Standard Metropolitan areas; that Youngstown. They argue that the Com nite handicap; that the noncommercial some nine cities smaller than Youngs mission determined in the Sixth Report educational station in Akron would en town have been assigned four or more and Order that the assignment of 3 counter further difficulties and costs if it television channels and that two smaller channels to Youngstown was warranted, were required to operate on Channel 61, Urbanized areas (El Paso and Salt Lake ¡^ tb a t there is nothing in the record as proposed, instead of Channel 55, and City, Utah) and one slightly larger Ur oi this proceeding to indicate that a that it would be discriminatory to make banized area (Omaha, Nebraska) have ourth assignment is justified. They Akron’s second commercial assignment a been assigned five channels for commer contend that the proposed assignment of higher channel in order to make a fourth cial use. In reply to the argument that anru.e- 4? Y°ungstown is not based channel available to the smaller city of its proposal contravenes the Commis n public interest considerations but on Youngstown. It is urged that the assign sion’s policy of reserving a channel for ne private and speculative belief of ment of a fourth UHF channel to noncommercial educational use in com- 374 PROPOSED RULE MAKING munities having a total of three or more stations. It is also noted that parties in mercial use and there appears to be no assignments, it submits that this policy Clarksburg and Akron have filed com demand for a noncommercial educa was not followed by the Commission in ments in the proceeding expressing tional reservation in Youngstown, we be assigning a fourth commercial channel to opposition to the frequency changes lieve petitioner’s suggestion that Chan Lexington, Kentucky. It further argues proposed for those communities by nel 73 might be reserved for education that the technical objections raised to its petitioner. is without merit. three proposed plans for assigning Chan 10. Upon our careful evaluation of all 12. The Commission determined in nel 45 to Youngstown are without merit the comments and pleadings filed in this the Sixth Report and Order that the as since the proposed assignments comply further proceeding, we are unable to con signment of three channels to Youngs with the mileage requirements of the clude that the public interest would be town represented a fair and equitable rules, and it urges that the argument served by shifting Channel 45 from New distribution in light of the need for fa that the substitution of higher UHF Castle to Youngstown by .means of any cilities in other communities. We find channels for lower channels would re of the three new alternative plans pro nothing in the record of this proceeding quire increased power to provide equiva posed by WKST, Inc. We reached this which establishes a need for the assign lent UHF service should not be consid same conclusion with respect to WKST’s ment of a fourth channel to Youngstown ered since differences between channels original proposal for the shifting of at this time, particularly in view of the from the point of coverage are not recog Channel 45 to Youngstown by exchang fact that the fourth assignment proposed nized. WKST, Inc., asserts that the fact ing Channels 45 and 73 between New could not be made without shifting as that the adoption of any of its three plans Castle and Youngstown primarily be signments in other communities, sub would require substitution of higher UHF cause it was not clear that other parties stituting higher UHF channels for lower channels in other communities is of no might not be ready and willing to under channels presently assigned to some substantial significance inasmuch as the take operation on Channel 45 in New communities and in two of the proposed lower channels now assigned to Clarks Castle in the event that WKST failed to plans, changing the frequencies of au burg, Meadville, and Akron have been resume operation and the channel be thorized stations. While the communi available since 1952 and there has been came available for use. We pointed out ties of Meadville, Clarksburg and Akron no demand for their use. With respect to in our decision of April 20, 1955 that, al are apparently not ready to proceed im the changes required in outstanding au though we had recognized in several mediately with the establishment of thorizations, WKST, Inc., states that cases that the temporary equipment stations on the channels presently as neither of the permittees of the stations problems associated with operation on signed to them, the interest shown by affected in Wheeling and Pittsburgh filed the higher UHF channels warranted persons and organizations filing com any response to the Orders to Show shifting a lower channel from a com ments in this proceeding in the eventual Cause directed against them. Petitioner munity which is not ready to proceed establishment of .stations on these chan also urges that it would be unfair to it with television to a community which is nels, in our opinion, prevents a determi to afford the applicant for Channel 73 prepared to proceed promptly with tele nation that the lower channels presently in Youngstown an opportunity to amend vision service, this precedent was not assigned will not be used in the fore its application and compete with it for applicable with respect to petitioner’s seeable future. Under such circum Channel 45 in Youngstown in view of proposal since such shifts had been au stances, we are opposed to shifting the the fact that its original and modified thorized only when there was no present lower channels in these communities to petitions for the assignment of Channel prospect that the channel to be Shifted the higher channels proposed in the 45 to Youngstown have been pending be from one community to another would alternate plans. Such changes in as fore the Commission since December 27, be used in the foreseeable future. In signments at this time may further 1954, and that Community Telecasting this further proceeding petitioner has impede the establishment of a first or Company, with full knowledge and no attempted to satisfy our objections to its second local television service in these tice of its proposals, filed for Channel original proposal by urging in three al communities. Even though the UHF 73 on August 30, 1955. ternative plans, the substitution of a permittees in Wheeling and Pittsburgh 9. The opposing parties urge in theirchannel closer to 45 (either 31, 51 or 55) -have raised no objections to operating Replies that no showing has been made in place of Channel 45 in New Castle. on the other frequencies proposed in that any of the three alternative plans However, we now find that an even more Plans I and II, we likewise believe that for the assignment of Channel 45 to serious objection exists with respect to these communities should not be assigned Youngstown would serve the public in the shifting of Channel 45 from New Cas other channels in order to make a fourth terest nor that any present public de tle to Youngstown in the manner pro assignment available to another com-' mand or. need for a fourth commercial posed in the alternate plans. munity which, to all indications, has no UHF assignment exists in Youngstown. 11. In this further proceeding we have present need for an additional assign It is submitted that while a number of before us the question of whether ment. comments in opposition to the assign Youngstown should be assigned a fourth 13. All of the public interest factors ment of Channel 45 to Youngstown were television channel. This question was which petitioner and others urge in sup filed, only two comments—one a petition not before us when we considered and port of the assignment of Channel 45 to signed by 20 residents in the area and rejected petitioner’s original proposal. Youngstown bear on the need of that the other a letter from nine residents— That proposal would have only shifted community for a third UHF service and were filed which in any way tend to sup Channels 45 and 73 between Youngstown not a fourth service. We anticipate that port petitioner’s request and that both and New Castle and would not have dis this need will soon be satisfied by the es of these petitions urge that a third tele turbed the number of assignments to tablishment of a new station on Channel vision station is needed in the Youngs Youngstown. However, each of the 73 at Youngstown in view of the out town area and make no reference to the alternate proposals now before us would standing authorization recently granted need for a fourth service. It is contended add Channel 45 as a fourth assignment for its use. Petitioner and all other par that the establishment of a third station to Youngstown. At the time of our prior ties interested in operating a television in Youngstown on Channel 73 will pro decision, there were no applications for station at Youngstown have had ample vide a third service to Youngstown and the use of Channel 73 in Youngstown. and equal opportunity to apply for Chan its, environs, which will be more than However, on August 30,1955, Community nel 73 for a period of over three years. ample to meet the need for netwbrk as Telecasting Company applied for Chan While petitioner believes that it would well as for local television service. On nel 73 in Youngstown, and its applica be able to operate more successfully on the other hand, it is urged that if a tion (BPCT-2015) to construct a new Channel 45 as a Youngstown station fourth assignment is made to Youngs station thereon was granted on Novem than as a New Castle station, we do not town, it will reduce substantially the pos ber 2, 1955. It can be expected therefore believe that petitioner’s private interests sibility of a New Castle station ever being that a third television facility will be are proper considerations which warrant established because of the proximity of established to provide an additional the assignment changes proposed. In Youngstown to New Castle and the eco service to the Youngstown area in the any event, in the absence of a showing nomic competition which the New Castle near future. In view of the fact that that a need exists for a fourth assign station would face from four Youngstown Channel 73 is now authorized for com ment at Youngstown, we cannot con- Thursday, January 19, 1956 FEDERAL REGISTER 375 elude that the public interest would be 7. Any interested party who is of the The following regulations are pre served by the assignment of Channel 45 opinion that the amendment proposed by scribed under sections 72,1021, and 1035 to Youngstown by any of the three alter the petitioner should not be adopted, oi, of the Internal Revenue Code of 1954 for nate plans for the reasons stated above. should not be adopted in the form set taxable years beginning after December 14. In view of the foregoing: It is orforth herein, may file with the Commis 31, 1953, and ending after August 16, dered, That the petition of WKST, Inc. sion on or before February 10, 1956, a 1954; is denied, and this proceeding is ter- written statement or brief setting forth minated. his comments. Comments in support of Sec. the proposed amendment may also be 1.72 Statutory provisions; annuities; Adopted: January 11, 1956. filed on or before the same date. Com certain proceeds of endowment Released: January 13,1956. ments or briefs in reply to the original and life insurance contracts. 1.72- 1 Introduction. F ederal Communications comments may be filed within 10 days from the last day for filing said original 1.72- 2 Applicability of section. Commission,1 comments and briefs. No additional 1.72- 3 Excludable amounts not income. [seal] W m. P. Massing, 1.72- 4 Exclusion ratio. Acting Secretary. comments may be filed unless (1) spe cifically requested by the Commission or 1.72- 5 Expected return. [P. R. Doc. 56-422; Filed, Jan. 18, 1956; (2) good cause for the filing of such ad 1.72- 6 Investment in the contract. 8:50 a. m.] 1.72- 7 Adjustment in investment where a ditional comments is established. The contract contains a refund fea Commission will consider all such com ture. ments that are submitted before taking 1.72- 8 Effect of certain employer contribu [ 47 CFR Part 3 ] action in this matter, and if any com tions with respect to premiums or ments appear to warrant the holding of [Docket No. 11612; FCC 56-46] other consideration paid or con a hearing or oral argument, notice of the tributed by an employee. Television B roadcast S tations time and place of such hearing or oral 1.72- 9 Tables. argument will be given. TABLE OF ASSIGNMENTS 1.72- 10 Effect of transfer of contracts on 8. In accordance with the provisions investment in the contract. In the matter of amendment of § 3.606 of § 1.764 of the Commission’s rules and 1.72- 11 Amounts not received as annuities. Table of assignments, rules governing regulations, an original and 14 copies of 1.72- 12 Effect of taknig an annuity in lieu Television Broadcast Stations (Clarli all statements, briefs, or comments shall of a lump sum upon the maturity ston, Wash.). be furnished the Commission. of a contract. 1. Notice is hereby given that the Adopted: January 11, 1956. 1.72- 13 Special rule for employee contribu Commission has received a proposal for tions recoverable in three years. rule making in the above-entitled Released: January 13,1956. 1.72- 14 Exceptions from application of matter. principles of section 72. 2. The Commission has before it a pe F ederal Communications 1.1021 Statutory provisions; sale of annui tition filed on July 19,1955, and amended Commission, ties. October 21, 1955, by Orchards Commu [seal] W m. P. Massing, 1.1021-1 Sale of annuities. Acting Secretary. 1.1035 Statutory provisions; certain ex- . nity Television Association, Lewiston, changes of insurance policies. Idaho, requesting amendment of the [F. R. Doc. 56-423; Filed, Jan. 18, 1956; 1.1035-1 Certain exchanges of Insurance television Table of Assignments con 8:50 a. m.] policies. tained in section 3.606 of its Rules and Regulations, so as to assign Channels § 1.72 Statutory provisions; annuities; 34-}- and 40-f to Clarkston, Washington, DEPARTMENT OF THE TREASURY certain proceeds of endowment and life a community not now listed in the Table. insurance contracts. Internal Revenue Service 3. In support of the requested amend Sec. 72. Annuities; certain proceeds of en ment, petitioner urges that the proposed [ 26 CFR (1954) Part U dowment and life insurance contracts—(a) assignments would conform to the Com General rule for annuities. Except as other mission’s rules. Petitioner states that in I ncome T ax; Taxable Y ears B eginning wise provided in this chapter, gross income the event the assignments as proposed A fter D ecember 31, 1953; Ann uities; Includes any amount received as an annuity (whether for a period certain or during one are adopted applications will be filed for Certain P roceeds of Endowment and new stations to be used for the purposes or more lives) under an annuity, endowment, Life I nsurance Contracts or life insurance contract. of retransmitting the programs of two (b) Exclusion ratio. Gross income does of the Spokane, Washington stations. notice of proposed rule making not include that part of any amount received 4. The Commission is of the view that as an annuity under an annuity, endowment, - .rule making proceedings should be insti Notice is hereby given, pursuant to or life insurance contract which bears the tuted in this matter in order that inter the Administrative Procedure Act, ap same ratio to such amount as the investment ested parties may submit their views and proved June 11, 1946, that the regula in the contract (as of the annuity starting the Commission may have the benefit of tions set forth in tentative form below date) bears to the expected return under the these views prior to taking final action. are proposed to be prescribed by the contract (as of such date). This subsection Commissioner of Internal Revenue with shall not apply to any amount to which sub 5. Petitioner proposes to establish section (d) (1) (relating to certain employee satellite stations in Clarkston to re the approval of the Secretary of the Treasury. Prior to the final adoption of annuities) applies. broadcast the programs of other stations. (c) Definitions—(1) Investment in the Station KLEW-TV was authorized to such regulations, consideration will be contract. For purposes of subsection (b), commence operation on Channel 3 in given to any data, views, or arguments the investment in the contract as of the an Lewiston, Idaho, in December 1955. pertaining thereto which are submitted nuity starting date is— Parties filing comments in this proceed- in writing, in duplicate, to the Commis (A) The aggregate amount of premiums sioner of Internal Revenue, Attention: or other consideration paid for the contract, rug should direct their attention to minus w“®ther the Clarkston-Lewiston area is T: P, Washington 25, D. C., within the period of 30 days from the date of pub (B) The aggregate amount received under sufficiently large to warrant the estab the contract before s.uch date, to the extent F ederal lishment of two additional channels. lication of this notice in the that such amount was excludable from gross R egister. The proposed regulations are income under this subtitle or prior income 6- Authority for the adoption of the to be issued under the authority con Proposed amendment is contained in tax laws. tained in sections 72 (c) and 7805 of the (2) Adjustment in investment where there sections 4 (i), 301, 303 (c), (d), (f) and Internal Revenue Code of 1954 (68A Stat. is refund feature. If— of an annuitant) on or after the death of the (A) If received on or after the annuity (3) The annuity starting date is January annuitant or annuitants; and starting date, shall be included in gross in 1, 1954, or the first day of the first period (C) Such payments are in the nature of acome; or for which the transferee received an amount refund of the consideration paid, (B) If subparagraph (A) does not apply, under the contract as aii annuity, whichever then the value (computed without discount shall be included in gross income, but only is the later. for interest) of such payments on the an to the extent that it (when added to amounts previously received under the contract which For purposes of this subsection, the term nuity starting date shall be subtracted from “transferee” includes a beneficiary of, or the the amount determined under paragraph (1). were excludable from gross income under this subtitle or prior income tax laws) ex estate of, thé transferee. Such value shall be computed in accordance (h) Option to receive annuity in lieu of with actuarial tables prescribed by the Sec ceeds the aggregate premiums or other con sideration paid. lump sum. If— retary or his delegate. For purposes of this (1) A contract provides for payment of a paragraph and of subsection (e) (2) (A), the For purposes of this section, any amount re lump sum in full discharge of an obligation term “refund of the consideration paid” in ceived which is in the nature of a dividend under the contract, subject to an option to cludes amounts payable after the death of or similar distribution shall be treated as receive an annuity in lieu of such lump sum; an annuitant by reason of a provision in the an amount not received as an annuity. (2) The option is exercised within 60 days contract for a life annuity with minimum (2) Special rules for application of para after the day on which such lump sum first period of payments certain, but (if part of graph (1). For purposes of paragraph (1), became payable; and the consideration was contributed by an em the following shall be treated as amounts not (3) Part or all of such lump sum would ployer) does not include that part of any received as an annuity: (but for this subsection) be includible in payment to a beneficiary (or to the estate (A) Any amount received, whether in a gross income by reason of subsection (e) (1), of the annuitant) which is not attributable single sum or otherwise, under a contract to the consideration paid by the employee for in full discharge of the obligation under the then, for purposes of this subtitle, no part the contract as determined under paragraph contract which is in the nature of a refund of such lump sum shall be considered as in (1) (A>. of the consideration paid for the contract; cludible in gross income at the time such (3) Expected return. For purposes of sub and lump sum first became payable. section (b), the expected return under the (B) Any amount received under a con (i) Joint and survivor annuities where contract shall be determined as follows: tract on its surrender, redemption, or ma first annuitant died in 1951, 1952, or 1953. (A) Life4 expectancy. If the expected re turity. Where an annuitant died after December 31, turn under the contract, for the period on 1950, and before January 1, 1954, and the and after the annuity starting date, depends In the case of any amount to which the basis of a surviving annuitant’s interest in in whole or in part on the life expectancy preceding sentence applies, the rule of para the joint and survivor annuity contract was of one or more individuals, the expected graph (1) (B) shall apply (and the rule of determinable under section 113 (a) (5) of the return shall be computed with reference to paragraph (1) (A) shall not apply). Internal Revenue Code of 1939, then— actuarial tables prescribed by the Secretary (3) Limit on tax attributable to receipt (1) Subsection (d) shall not apply with or his delegate. of lump sum. If a lump sum is received respect to such contract; (B) Installment payments. If subpara under an annuity, endowment, or life insur (2) For purposes of this section, the ag graph (A) does not apply, the expected re ance contract, and the part which is includ gregate amount of premiums or other con turn is the aggregate of tjie amounts ible in gross income is determined under sideration paid for the contract is the basis receivable under the contract as an annuity. paragraph (1), then the tax attributable of the contract determined under such sec (4) Annuity starting date. For. purposes to the inclusion of such part in gross income tion 113 (a) (5); of this section, the annuity starting date for the taxable year shall not be greater than (3) For purposes of subsection (c) (1) in the case of any contract is the first day the aggregate of the taxes attributable to (B), there shall be taken into account only of the first period for which an amount is such part had it been included in the gross the aggregate amount received by the sur received as an annuity under the contract; income of the taxpayer ratably over the viving annuitant under the contract before except that if such date was before January taxable year in which received and the pre the annuity starting date, to the extent that 1, 1954, then the annuity starting date is ceding 2 taxable years. such amount was excludable from gross in January 1, 1954. (f) Special rules for computing employees’ come under this subtitle or prior income tax (d) Employees’ annuities—(1) Employee’scontributions. In computing, for purposes laws; and contributions recoverable in 3 years. of subsection (c) (1) (A), the aggregate (4) The annuity starting date is January Where— amount of premiums or other consideration 1, 1954, or the first day of the first period (A) Part of the consideration for an an paid for the contract, for purposes of sub for which the surviving annuitant received nuity, endowment, or life insurance con section (d) (1), the consideration for the an amount under the contract as an annuity, tract is contributed by the employer, and contract contributed by the employee, and Whichever is the later. (B) During the 3-year period beginning on for purposes of subsection (e) (1) (B), the (j) Interest. Notwithstanding any other the date (whether or not before January 1, aggregate premiums or other consideration provision of this section, if any amount is 1954) on which an amount is first received paid, amounts contributed by the employer held under an agreement to pay interest under the contract as an annuity, the ag shall be included, but only to the extent thereon, the interest payments shall be in gregate amount receivable by the employee that— cluded in gross income. under the terms of the contract is equal to (1) Such amounts were includible in the (k) Payments in discharge of alimony— or greater than the consideration for the gross income of the employee under this (1) In general. This section shall not apply contract contributed by the employee, subtitle or prior income tax laws; or, to so much of any payment under an annu then all amounts received as an annuity (2) If such amounts had been paid directly ity, endowment, or life insurance contract under the contract shall be excluded from to the employee at the time they were con (or any interest therein) as is includible in gross income until there has been so ex tributed, they would not have been includ the gross income of the wife under section cluded (under this paragraph and prior ible in the gross income of the employee 71 or section 682 (relating to income of an income tax laws), an amount equal to the under the law applicable at the time of such estate or trust in case of divorce, etc.). consideration for the contract contributed contribution. (2) Cross reference. For definition of by the employee. Thereafter all amounts (g) Rules for transferee where transfer “wife”, see section 7701 (a) (17). so received under the contract shall be in was for value. Where any contract (or any (l) Face-amount cértificates. For pur* cluded in gross income. interest therein) is transferred (by assign poses of this section, the term “endowment (2) Special rules for application of para- ment or otherwise) for a valuable consid contract” includes a face-amount certificate, graph (1). For purposes of paragraph (1), eration, to the extdht that the contract (or as defined in section 2 (a) (15) of the In if the employee died before any amount was interest therein) does not, in the hands of vestment Company Act of 1940 (15 ü. S. C., received as an annuity under the contract, the transferee, have a basis which is deter sec. 80a-2), issued after December 31, 1954. the words “receivable by the employee” shall mined by reference to the basis in the hands (m) Cross reference. For limitation on be read as “receivable by a beneficiary of the of the transferor, then— adjustments to basis of annuity contracts employee”. (1) For purposes of this section, only the sold, see section 1021. (3) Cross reference. For certain rules for actual value of such consideration, plus the determining whether amounts contributed amount of the premiums and other consid § 1.72-1 Introduction, (a) Section by employer are includible in the gross in eration paid by the transferee after the -72 prescribes rules relating to the inclu come of the employee, see part I of sub transfer, shall be taken into account in com sion in gross income of amounts received chapter D (sec. 401 and following, relating puting the aggregate amount of the premi under a life insurance, endowment, or to pension, profit-sharing, and stock bonus ums or other consideration paid for the annuity contract unless such amounts plans, etc.). contract; are specifically excluded from gross in (je) Amounts not received as annuities— (2) For purposes of subsection (c) (1) come under other provisions of chapter (1) General rule, if any amount is received (B), there shall be taken into account only under an annuity, endowment, or life in the aggregate amount received under the 1 of the Internal Revenue Code. In gen surance contract, if such amount is not re contract by the transferee before the annuity eral, these rules provide that amounts ceived as an annuity, and if no other pro starting date, to the extent that such amount subject to the provisions of section 72 are vision of this 'subtitle applies, then such was excludable from gross income under this includible in the gross income of the re amount— subtitle or prior income tax laws; and cipient except to the extent that they are Thursday, January 19, 1956 FEDERAL REGISTER 377 considered to represent a reduction or 72 (1). In addition, sections 402 and 403 the terms of the contract or indirectly by return of premiums or other considera of the Code provide that certain em the use of either mortality tables or com tion paid. ployees’ trust and plan distributions are pound interest computations, or both, in (b) For the purpose of determining subject to the provisions of section 72, conjunction with such terms. the extent to which amounts received except section 72 (e) (3). In such cases For the purpose of determining whether represent a reduction or return of pre the regulations under section 72 shall be amounts subject to section 72 (d) and miums or other consideration paid, the applied with respect to each such trust § 1.72-13 are “amounts received as an provisions of section 72 distinguish be or plan as though, the trust or plan were annuity”, however, the provisions of sub tween “amounts received as an annuity” a single contract to which section 72 division (i) shall be disregarded. In and “amounts not received as an an applied. As used hereafter in these addition, the term “amounts received as nuity”. In general, “amounts received regulations the term “contract” shall be an annuity” does not include amounts as an annuity” are amounts which are considered to include a “trust or plan” received to which the provisions of payable at regular intervals over a period described in sections 402 and 403 to the § 1.72-11 (b) apply, relating to certain of not less than one full year from the extent that distributions thereunder are amounts received by a beneficiary in the date on which they are deemed to begin, subject to the provisions of section 72. nature of a refund. provided the total of the amounts so pay (2) If two or more annuity obligations (3) (i) Notwithstanding the require able or the period for which they are to or elements to which section 72 applies ment of subdivision (iii) of subparagraph be paid can be determined as of that are acquired for a single consideration (2), if amounts are to be received for a date. See §1.72-2 (b) (2) and (3). (whether paid by one or more persons in definite or determinable time (whether Any other amounts to which the provi equal or different amounts, and whether for a period certain or for a life or lives) sions of section 72 apply are considered paid in a single sum or otherwise), such under a contract which provides: to be “amounts not received as an an annuity elements shall be considered to (a) That the amount of the periodic nuity”. See § 1.72-11. comprise a single contract for the pur payments may vary in accordance with (c) (1) In the case of “amounts re pose of the application of section 72 and investment experience (as in certain ceived as annuity” (other than certain the regulations thereunder. For rules profit-sharing plans), cost of living in employees’ annuities described in sec relating to the allocation of investment in dices, or similar fluctuating criteria, or tion 72 (d) and in § 1.72-13X, a propor the contract in the case of annuity ele (b) For specified payments the value tionate part of each amount so received ments payable to two or more persons, of which may vary for income tax pur is considered to represent a return of see § 1.72-6 (b). poses, such as in the case of any annuity premiums or other consideration paid. (b) Amounts. (1) In general the payable in foreign currency, The proportionate part of each annuity amounts to which section 72 apphes are payment which is thus excludable from any amounts received under the con each such payment received shall be gross income is determined by the ratio tracts described in paragraph (a) (1) considered as an amount received as an which the investment in the contract as unless such amounts are specifically ex annuity only to the extent that it does of the date on which the annuity is cluded from gross income under other not exceed the amount computed by di deemed to begin bears to the expected provisions of chapter 1 of the Internal viding the investment in the contract by return under the contract as of that Revenue Code. For example, section 72 the number of periodic payments antici date. See § 1.72-4. does not apply to amounts received under pated during the time that the periodic (2) In the case of employees’ annuitiesa life insurance contract if such amounts payments are to be made. If payments of the type described in section 72 (d), are paid by reason of the death of the in are to be made more frequently than an no amount received as an annuity in a sured and are excludable from gross in nually, the amount so computed shall be taxable year to which the Internal Reve come under section 101 (a) of the Code. multiplied by the nfimber of periodic nue Code of 1954 applies is includible in See also sections 101 (d), relating to pro payments to be made per year for the the gross income of a recipient until the ceeds of life insurance paid at a date purpose of determining the total of the aggregate of all amounts received there later than death, and 104 (a) (4), re amounts which shall be considered to be under and excluded from gross income lating to compensation for injuries or received as an annuity during the tax under the applicable income tax law sickness. In addition, section 72 does able year. To this extent, the payments exceeds the consideration contributed not exclude from gross income any received shall be considered to represent (or deemed contributed) by the employee amounts received under an agreement a return of premiums or other considera under § 1.72-8. Thereafter, all amounts to hold an amount and pay interest tion paid and shall be excludable from so received are includible in the gross thereon. See §1.72-14 (a). However, gross income in the taxable year in which income of the recipient. See § 1.72-13. section 72 does apply to amounts re received. See § 1.72-4 (d) (2). To the (d) in the case of “amounts not re ceived by a surviving annuitant under a extent that the payments received ex ceived as an annuity”, if such amounts joint and survivor annuity contract ceed the total of the amounts thus con are received after an annuity has begun since such amounts are not considered sidered to be received as an annuity, they and during its continuance, amounts so to be paid by reason of the death of an shall be considered to be amounts not received are generally includible in the insured. For a special deduction for the received as an annuity and shall be in gross income of the recipient. Amounts estate tax attributable to the inclusion cluded in the gross income of the recipi not received as an annuity which are of the value of the interest of a surviving e n t to the extent prescribed in section 72 received at any other time are includible annuitant under a joint and survivor (e) and § 1.72-11. in the gross income of the recipient only annuity contract in the estate of the de (ii) For purposes of subdivision (i), to the extent that such amounts, when ceased primary annuitant, see section 691 the number of periodic payments antici added to all amounts previously received (d) and the regulations thereunder. pated during the time payments are to under the contract which were exclud (2) Amounts subject to section 72 inbe made shall be determined by multi able from the gross income of the re accordance with subparagraph (1) are plying the number of payments to be cipient under the income tax law appli considered “amounts received as an an made each year (a) by the number of cable at the time of receipt, exceed the nuity” only in the event that all of the years payments are to be made, or (b) if Premiums or other consideration paid. following tests are met: payments are to be made for a life or See § 1.72-11/ (i) They must be received on or after lives, by the appropriate multiple found § 1.72-2 Applicability of section—(a) the “annuity starting date” as that term under the tables contained in § 1.72-9, Contracts, (1) The contracts under is defined in § 1.72-4 (b ); except that life expectancies expressed ^hich amounts paid will be subject to (ii) They must be payable in periodic other than in a whole number of years «'he provisions of section 72 are life in installments at regular intervals shall be considered to be equal to the surance, endowment, and annuity con (whether annually, semiannually, quar next lower whole number of years. tracts as defined in section 1035 (b) of terly, monthly, weekly, or otherwise) (iii) For an example of the computa the Code. For the purposes of section over a period of not less than one full tion to be made in accordance with this ¿7 however, it is immaterial whether year from the annuity starting date; and subparagraph and a special election such contracts are entered into with an (iii) Except as indicated in subpara which may be made in a taxable year insurance company. The term “endow graph (3), the total of the amounts pay subsequent to a taxable year in which the ment contract” also includes the “face- able must be determinable at the an total payments received under a con amount certificates” described in section nuity starting date either directly from tract described in this subparagraph are No. 12— 4 378 PROPOSED RULE MAKING less than the total of the amounts ex (4) After an exclusion ratio has been (1) The annuity starting date shall cludable from gross income in such year determined for a particular contract, it be the first day of the first period for under subdivision (i), see § 1.72-4 (b) shall be applied to any amounts received which a payment is received in a tax (2) (iv). as an annuity thereunder unless or until able year subsequent to the taxable year one of the following occurs: in which payments received aggregated § 1.72-3 Excludable amounts not in (i) The contract is assigned or trans less than the amounts excludable; come. In general, amounts received ferred for a valuable consideration (see (2) The aggregate of premiums or under contracts described in § 1.72-2 section 72 (g) and § 1.72-10 (a )); other consideration paid shall be reduced (a) (1) are not to be included in the (ii) The contract matures or is sur by all amounts received prior to such an income of the recipient to the extent nuity starting date to the extent such that such amounts are excludable from rendered, redeemed, or discharged in accordance with the provisions of § 1.72- amounts were excludable from the gross gross income as the result of the appli income of the recipient; and cation of section 72 and the regulations 11 (b) or (c ); (iii) The contract is exchanged (or is (3) The length of time for which pay thereunder. considered to have been exchanged) in ments are to be made shall be redeter § 1.72-4 Exclusion ratio— (a) General a manner described in § 1.72-11 (d). mined as of such annuity starting date. rule. (1) (i) To determine the propor (b) Annuity starting date. (1) Except The application of the principles of this tionate part of each amount received as as provided in subparagraph (2) of this an annuity which is excludable from the subdivision may be illustrated by the paragraph, the annuity starting date is following example: gross income of a recipient in the taxable the first day of the first period for which year of receipt (other than amounts re an amount is received as an annuity, Example. Taxpayer A, a 64-year-old male, ceived under certain employee annuities except that if such date was before files his return on a calendar year basis and described in section 72 (d) and § 1.72- has a life expectancy of 15.6 years on June January 1, 1954, then the annuity start 30, 1954, the annuity starting date of a con 13), an exclusion ratio is to be deter ing date is January 1, 1954. The first tract to which § 1.72-2 (b) (3) applies and mined for each contract. In general, day of the first period for which an which he purchased for $20,000. The con this ratio is determined by dividing the amount is received as an annuity shall tract provides for variable annual payments investment in the contract as found be whichever of the following is the for his life. He receives a payment of $1,000 under § 1.72-6 by the expected return later: . on June 30, 1955, but receives no other pay under such contract as found under (1) The date upon which the obliga ment until June 30, 1957. He excludes the § 1.72-5. Where a single consideration tions under the contract became fixed, or $1,000 payment from his gross income for is given for a particular contract which the year 1955 since this amount is less than (ii) The first day of the period (year, $1,333.33, the amount determined by dividing provides for two or more annuity ele half-year, quarter, month, or otherwise, his investment in the contract" ($20,000) by ments, an exclusion ratio shall be deter depending on whether payments are to his life expectancy expressed in the next mined for the contract as a whole by be made annually, semiannually, quar lower whole number (15) as of the original dividing the investment in such contract terly, monthly, or otherwise) which ends annuity starting date. Taxpayer A may elect, by, the aggregate of the expected returns on the date of the first annuity payment. in his return for the taxable year 1957, to under all the annuity elements provided treat July 1, 1956, as his annuity starting (2) Notwithstanding the provisions of date. For the purpose of determining the thereunder. However, where the pro subparagraph (1), the annuity starting visions of § 1.72-2 (b) (3) apply to pay extent to which amounts received in 1957 or date shall be determined in accordance thereafter shall be considered amounts re ments received under such a contract, with whichever of the following provi ceived as an annuity, he shall reduce his in see § 1.72-6 (b) (3). sions is appropriate: vestment in the contract ($20,000) by the (ii) The exclusion ratio for the par (i) In the case of a joint and survivor $1,000 payment excludable from gross income ticular contract is then applied to the annuity contract described in section 72 in 1955 and divide the resulting amount total amount received as an annuity (i) and § 1.72-5 (b) (3), the annuity ($19,000) by his life expectancy computed as during the taxable year by each recipient. of July 1, 1956, and expressed in the next starting date is January 1, 1954, or the lower whole number of years (14). See, however, § 1.72-5 (e) (3). Any ex first day of the first period for which an cess of the total amount received as an amount is received as an annuity by the (b) If the taxpayer chooses to make annuity during the taxable year over the surviving annuitant, whichever is the the election described in subdivision (a) amount determined by the application of later; of this subdivision, he shall file with his the exclusion ratio to such total amount (ii) In the case of the transfer of an return a statement that he elects to make shall be included in the gross income of annuity contract for a valuable consid a new start with respect to the annuity the recipient for the taxable year of eration, as described in section 72 (g) under the provisions of § 1.72-4 (b) (2) receipt. and § 1.72-10 (a), the annuity starting (iv). This statement shall also contain (2) The principles of subparagraph date shall be January 1,1954, or the first the following information: (1) may be illustrated by the following day of the first period for which the (1) The date on which he last received example: transferee received an amount as an an a payment under the contract in a pre Example. Taxpayer A purchased an an nuity, whichever is the later; ceding taxable year, nuity contract providing for payments of (iii) If the provisions of § 1.72-11 (d) (2) The aggregate of premiums or $100 per month for a consideration of $12,650. apply to an exchange of one contract for o t h e r consideration paid for the Assuming that the expected return under this contract is $16,000, the exclusion ratio another, or to a transaction deemed to be contract, $12,650 such an exchange, the annuity starting (3) The aggregate of all amounts re to he used by A is i^g'bod*, or *79‘* Percen^ date of the contract received (or deemed ceived under such contract, up to and in (79.06 rounded to the nearest tenth). The received) in exchange shall be January cluding the date indicated in (I). which amount of each payment to be excluded from 1,1954, or the first day of the first period were excludable from gross income under gross income is $79.10 (79.1 percent of $100). for which an amount is received as an the applicable income tax law, and If 12 such monthly payments are received annuity under such contract, whichever (4) The number of whole years such by A during his taxable year, the total is the later; and annuity is expected to continue as of the amount he may exclude from his gross in (iv) (a) If the provisions of § 1.72-2 annuity starting date determined under come in such year is $949.20 (12 X $79.10). The balance of $250.80 ($1,200 less $949.20) (b) (3) apply to payments received by subdivision (I) of subdivision (a). is the amount to be included in gross income. the taxpayer and the aggregate of the (c) Fiscal year taxpayers. Fiscal year payments so received in a taxable year is taxpayers receiving amounts as annui For an example of the computation of the less than the total of the amounts ex ties in a taxable year to which the In exclusion ratio in cases where two an cludable from gross income under such ternal Revenue Code of 1954 apphes nuity elements are acquired for a single section during that year, the taxpayer shall determine the annuity starting date consideration, see § 1.72-6 (b) (1). may elect, in the first succeeding tax in accordance with section 72 (c) (4) ana (3) The exclusion ratio shall be ap able year in which he receives a pay this section. The annuity starting date plied only to amounts received as an ment, to redetermine his annuity start for fiscal year taxpayers receiving annuity within the meaning of that term ing date, the investment in the contract, amounts as an annuity in a taxable year under § 1.72-2 (b) (2) and (3). For the and the time during which payments will to which the Internal Revenue Code oi treatment of amounts not received as an be received as an annuity. In such 1939 applies shall be January 1, annuity, see section 72 (e) and § 1.72-11. case— except where the first day of the first Thursday, January 19, 1956 FEDERAL REGISTER 379 period for which an amount is received mined by dividing the portion of the in to be received annually by the multiple by such a taxpayer as an annuity is sub vestment in the entire contract which is shown in Table I of § 1.72-9 under the sequent thereto and before the end of a properly allocable.to all such elements by age (as of annuity starting date) and fiscal year to which the Internal Rev the aggregate of the expected returns sex of the measuring life (usually the enue Code of 1939 applied. In such case, thereunder and such ratio shall be ap annuitant’s). Thus, where a male pur the latter date shall be the annuity start plied in the manner described in subdi chases a contract providing for an im ing date. In all cases where a fiscal year vision (i) of subparagraph (1); and mediate annuity of $100 per month for taxpayer received an amount as an an (ii) With respect to the annuity ele his life and, as of the annuity starting nuity in a taxable year to which the In ments to which § 1.72-2 (b) (3) does ap date (in this case the date of purchase), ternal Revenue Code of 1939 applied and ply, the investment in the entire contract the annuitant’s age at his nearest birth subsequent to the annuity starting date shall be reduced by the portion thereof day is 66, the expected return is com determined in accordance with the pro found in subdivision (i) and the result puted as follows: visions of this paragraph, such amount ing amount shall be used to determine Monthly payment of $100X12 shall be disregarded for the purposes of the extent to which the aggregate of the months equals annual payment section 72 and the regulations there payments received during the taxable of ...... $1, 200 under. year under all such elements is exclud Multiple shown in Table I, male, (d) Exceptions to the use of the ex able from gross income. The amount so age 66______14. 4 clusion ratio. (1) Where the provisions excludable shall be allocated to each of section 72 would otherwise require an recipient under such elements in the Expected return ($1,200X14.4)____ $17,280 exclusion ratio to be determined, but the same ratio that the total of the payments (2) If payments are to be made quar investment in the contract (determined he receives each year bears to the total terly, semiannually, or annually, an ad under § 1.72-6) is an amount of zero or of the payments received by all such justment of the applicable multiple less, no exclusion ratio shall-be deter recipients during the year. The exclu shown in Table I may be required. A mined and all amounts received under sion ratio with respect to the amounts further adjustment may be required such a contract shall be includible in the so allocated shall be 100 percent. See where the interval between the annuity gross income of the recipient for the §§1.72-5 (f) (2)'and 1.72-6 (b) (3). starting date and the date of the first purposes of section 72. § 1.72-5 Expected return— (a) Ex payment is less than the interval between (2) Where the investment in the con pected return for but one life. (1) If a future payments. Neither adjustment tract is equal to or greater than the total contract to which section 72 applies pro shall be made, however, if the payments expected return under such contract vides that one annuitant is to receive a are to be made more frequently than found under § 1.72-5, the exclusion ratio fixed monthly income for life, the ex quarterly. The amolrnt of the adjust shall be considered to be 100 percent and pected return is determined by multiply ment, if any, is to be found in accordance all amounts received as an annuity under ing the total of the annuity payments with the following table: such contract shall be excludable from the recipient’s gross income. See, for If the number of whole example, § 1.72-5 (f) (1). months from the an (e) Exclusion ratio in the case of two nuity starting date to 0-1 2 3 4 6 6 7 8 0 10 11 12 the first payment or more annuity elements acquired for a date is— single consideration. (1) (i) Where two or more annuity elements are provided And payments under under a contract described in § 1.72-2 the contract are to be made: (a) (2), an exclusion ratio shall be de Annually __ _ +0.5 +0.4 +0.3 +0.2 +0.1 0 0 -0 .1 -0 .2 -0 .3 -0 .4 -0 .5 termined for the contract as a whole and applied to all amounts received as an Semiannually -- + .2 + .1 0 0 - .1 - .2 annuity under any of the annuity ele Quarterly______+ .1 0 - .1 ments. To obtain this ratio, the invest ment in the contract determined in ac cordance with § 1.72-6 shall be divided Thus, for a male, age 66, the multiple lier, the expected return under such a by the aggregate of the expected returns found in Table I adjusted for quarterly contract is $3,456, computed as follows: found with respect to each of the an payments the first of which is to be made Monthly payments of $60X 12 nuity elements in accordance with one full month after the annuity start months equals annual payment of. $720 § 1.72-5. For this purpose, it is imma ing date, is 14.5 (14.4+0.1); for semian Multiple shown in Table IV for male, terial that payments under one or more nual payments the first of which is six age 60, for term of 5 years______4.8 full months from the annuity starting of the annuity elements involved have Expected return for 5 year temporary not commenced at the time when an date, the adjusted multiple is 14.2 (14.4— 0.2); for annual payments the first of life annuity of $720 per year ($720 amount is first received as an annuity X4.8) ______$3,456 under one or more of the other annuity which is one full month from the annuity elements. starting date, the adjusted multiple is The adjustment provided by subpara (iv) Apply the multiple found in (ii) fixed number of years or months for sons in the manner described in § 1.72-5 to the difference between the total of which payments are to be made by the (b) (6), the expected return is to be com the amounts to be received annually be amount of the payment provided in the puted as though there were two joint and fore and the total of the amounts to be contract for each such period. survivor annuities under the same con received annually after the death of the (d) Expected return with respect to tract, in the following manner. First, first to die. amount certain. In the case of contracts the multiple appropriate to the ages (as involving no life or lives as a measure of the annuity starting date) and sexes If the original annual payment is in ex ment of their duration, but under which of the annuitants involved shall be found cess of the annual payment to be made a determinable total amount is to be in Table n of § 1.72-9. Second, the mul after the death of the first to die, the paid in installments of lesser amounts tiple so found shall be applied to the expected return is the sum of the paid at periodic intervals, the expected sum of the payments to be made each amounts determined under subdivisions return shall be the total amount year to both annuitants. The result is (iii) and (iv), above. This may be illus guaranteed. the expected return for the contract as trated by the following example: (e) Expected return where .two or a whole. Example. A husband purchases a Joint more annuity elements providing for (5) For rules relating to expected re and survivor annuity providing for payments fixed payments are acquired for a single turn where two or more annuity ele of $100 a month for as long as both he and consideration. (1) In the case of a con his wife" live, and, after the death of the ments are acquired for a single consid first to die, payments to the survivor of $75 tract described in § 1.72-2 (a) (2), which eration and one or more of such elements a month for life. As of the annuity start- provides for specified payments to be does not specify a fixed payment for each ing date, his age at his nearest birthday is made under two or more annuity ele period, see paragraph (f). 70 and that of his wife at her nearest birth ments, the expected return shall be (f) Expected return with respect to day is 67. The expected return under the found for the contract as a whole by obligations providing for payments de contract is computed as follows: aggregating the expected returns found scribed in 11.72-2 (b) (3). (1) If a Multiple from Table II (male, age with respect to each annuity element. contract to which section 72 applies pro 70; female, age 67) L______19.7 If individual life annuity elements are vides only for payments to be made in Multiple from Table HA (male, age involved (including joint and survivor a manner described in § 1.72-2 (b) (3), 70; female, age 67)______9.3 annuities where the primary annuitant the expected return for such contract as Portion of expected return ($900 X died before January-1, 1954), expected a whole shall be an amount equal to the 19.7—sum per year after first return for each of them shall be deter death)______$17, 730 investment in the contract found in ac Portion of expected return ($300 x mined in the manner prescribed in par cordance with section 72 (c) (1) and 9.3—amount of change in sum at agraph (a) of this section. If joint and § 1.72-6, except that § 1.72-6 (c) (3) first death)______$2, 790 survivor annuity elements áre involved, shall be disregarded. the expected return for such elements (2) If a contract to which section 72 Expected return under the shall be determined under the appropri applies provides for annuity elements, contract______$20, 520 ate subparagraph of paragraph (b) of one or more of which (but not all) pro The total expected return in this example, this section. If terms certain or amounts vide for payments to be, made in a man $20,520, is to be used in computing the certain are involved, the expected re ner described in § 1.72-2 (b) (3) — amount to be excluded from gross income. turns for such elements shall be deter (i) With respect to the portion of the Thus, if the investment in the contract is mined under paragraphs (c) or (d), contract providing for annuity elements $17,887, the exclusion ratio is — or respectively. » to which § 1.72-2 (b) (3) does not apply, $20,520 (2) The aggregate expected return the expected return shall be the aggre 87.2 percent. The amount excludable from found in accordance with the rules set each monthly payment made while both are gate of the expected returns found for alive is 87.2 percent of $100, or $87.20 and forth in subparagraph (1) shall consti- * each of such elements in accordance the remaining $12.80 of each payment shall tute the expected return for the contract with the appropriate paragraph of this be included in gross income. After the as a whole. The investment in the con section; and death of the first to die, the amount ex tract shall be divided by the amount thus (ii) With respect to all annuity ele cludable by the survivor shall be 87.2 per determined to obtain the exclusion ratio ments to which § 1.72-2 (b) (3) does cent of each monthly payment of $75, or for the contract as a whole. This exclu apply, the expected return for all such $65.40, and the remaining $9.60 of each pay sion ratio shall be applied to all amounts ment shall be included in gross income, elements shall be an amount equal to received as an annuity under the con the portion of the investment in the K the original annual payment is less tract by any recipient (in accordance contract allocable to such elements in ac than the annual payment to be made with the provisions of § 1.72-4), except cordance with the provisions of §§ 1.72-4 after the death of the first to die, the in the case of amounts received by a sur (e) (2) (ii) and 1.72-6 (b) (3) (ii) (b). expected return is the difference between viving annuitant under a joint and sur vivor annuity element to which the pro § 1.72-6 Investment in the contract— the amounts determined under subdi (a) General rule. (1) For the purpose visions (iii) and (iv), above. If, how visions of section 72 (i) and paragraph (b) (3) of this section would apply if it of computing the “investment in the ever, payments are to made quarterly, contract”, it is first necessary to deter semiannually, or annually under the were a separate contract. See subpara graph (3) of this paragraph. mine the “aggregate amount of pre contract, the multiples obtained from miums or other consideration paid” for poth Tables n and HA shall first be ad (3) In the case of a contract provid ing two or more annuity elements, one of such contract. See section 72 (c) (1). justed in a manner prescribed in para This determination is made as of the graph (a) (2) of this section. which is a joint and survivor annuity ele ment of the type described in section 72 later of the annuity starting date of the (®) If a contract provides for the pay contract or the date on which an amount ment of life annuities to two persons (i) and paragraph (b) (3) of this sec tion, the general exclusion ratio for the is first received thereunder as an annu ouring their respective lives and, after ity. The amount so found is then re death of one (without regard to contract as a whole, for the purpose of computations with respect to all the duced by the sum of the following which one dies first), provides that the amounts in order to find the investment survivor shall receive for life both his other annuity elements, shall be deter mined in accordance with the principles in the contract: wn annuity payments and the payments (i) The total amount of any premium made formerly to the deceased person, of subparagraphs (1) and (2) of this paragraph. A special exclusion ratio rebates or dividends received on or be ue expected return shall be determined fore the date on which the foregoing de «accordance with paragraph (e) (4), shall thereafter be determined for the surviving annuitant receiving payments termination is made, and (ii) . The total of the amounts received (c) Expected return for term certain. under the annuity element described in section 72 (i) and paragraph (b) (3) of on or before such date which were ex u the case of a contract providing for this section by using the investment in cludable from the gross income of the Pecific periodic payments which are to the contract and the expected return de recipient under the income tax law ap Paid for a term certain such as a fixed termined in accordance with the provi plicable at the time of receipt. umber of months or years, without re sions of paragraph (b) (3). Amounts to which subdivision (ii) ap gard to life expectancy, the expected re (4) In the case of a contract provid plies shall include, for example, amounts turn is determined by multiplying the ing for payments to be made to two per considered to be return of premiums or 382 PROPOSED RULE MAKING other consideration paid under section starting date, and such contract is ac of this section) as reduced by the por 22 (b) (2) of the Internal Revenue Code quired for consideration of $19,575 (with tion thereof determined under subdivi of 1939 and amounts considered to be an out regard to whether paid by A, B, or sion (a) of this subdivision. employer-provided death benefit under both), the investment in the contract (4) If the provisions of subparagraph section 22 (b) (1) (B) of such Code. shall be allocated by determining the ex (3) apply to a contract, no adjustment For rules relating to the extent to which clusion ratio for the contract as a whole shall be made to the investment in such, an employee or his beneficiary may in in the following manner: contract for any refund feature pro clude employer contributions in the ag Expectancy of A under Table I and vided thereunder. gregate amount of premiums or other §1.72-5 (a) (2), 11,6 (12.1-0.5), (c) Special rules. (1) For the special consideration paid, see § 1.72-8. multiplied by $1,000______$11, 600 rule for determining the investment in (2) For the purpose of subparagraph Expectancy of B computed in a the contract for a surviving annuitant (1), amounts received subsequent to the similar manner ($1,000 X 14.5 in cases where the prior annuitant of a receipt of an amount as an annuity or [15.0-0.5])...... 14,500 joint and survivor annuity contract died subsequent to the annuity starting date, Total expected return____ _ 26,100 in 1951, 1952, or 1953, see § 1.72-5 (b) whichever is the later, shall be disre (3). garded. See, however, § 1.72-11. The exclusion ratio for both A and B (2) For special rules relating to the , ,, $19,575 __ , . . . _ determination of the investment in the (3) The application of this paragraph is then . , or 75 percent. A and B may be illustrated by the following $JoyJ.UU contract where employer contributions examples: shall each exclude from gross income are involved, see § 1.72-8. Example (1). In 1950, B purchased an an three-fourths ($750) of each $1,000 an (3) For the determination of an ad nuity contract for $10,000 which was to pro nual payment received and shall include justment in investment in the contract vide him with an annuity of $1,000 per year the remaining one-fourth ($250) of each in cases where a contract contains a re for life. He received $1,000 in each of the $1,000 annual payment received in gross fund feature, see § 1.72-7. years 1950, 1951, 1952, and 1953, prior to the income. annuity starting date (January 1, 1954). § 1.72-7 Adjustment in investment Under the Internal Revenue Code of 1939, (2) In the case of a contract providingwhere a contract contains a refund $300 of each of these payments (3 percent of for specified annuity payments to be ' feature—(a) Definition of a contract $10,000) was includible in his gross income, made to two persons during their joint containing a refund feature. A contract and the remaining $700 was excludable there lives and the payment of the aggregate to which section 72 applies, contains a from during each of the taxable years men of the two individual payments to the refund feature if: tioned. In computing B’s investment in the survivor for his life, the investment in (1) The expected return under such contract as of January 1, 1954, the total the contract shall be allocated in accord amount excludable from his gross income contract depends, in whole or in part, during the years 1950 through 1953 ($2,800) ance with the provisions of subparagraph on the life expectancy of one or more must be subtracted from the consideration (1). For this purpose, the investment in persons, paid ($10,000). Accordingly, B's investment the contract (without regard to the fact (2) The contract provides for pay in the contract as of January 1, 1954, is that differing amounts may have been ments to be made to a beneficiary or the $7,200 ($10,000 less $2,800). contributed by the two annuitants) shall estate of an annuitant in the event that Example (>). In 1945, C contracted for be divided by the expected return deter a specified amount or a stated number an annuity to be paid to him beginning De mined in accordance with § 1.72-5 (e) of payments has not been paid to the cember 31, 1960. In 1945 and in each suc (4). The resulting exclusion ratio shall cessive year until 1060, he paid a premium of annuitant or annuitants prior to death, $5,000. Assuming he receives no payments then be applied to any amounts received and of any kind under the contract until the date as an annuity by either annuitant. (3) Such payments are in the nature on which he receives the first payment as . (3) In the case of a contract providing of a refund of the consideration paid. an annuity (December 31, 1960), his invest two or more annuity elements, one or (b) Adjustment of investment for the ment in the contract as of the annuity start more of which provides for payments to refund feature in the case of a single life ing date (December 31, 1959) wil) be $75,000 be made in a manner described in annuity. Where a single life annuity ($5,000 paid each year for the 15 years from 1945 to 1959, inclusive). § 1.72-2 (b) (3), the investment in the contract to which section 72 applies con Example (3). Assume the same facts as in contract shall be allocated to the various tains a refund feature, the investment in example (2) . except that prior to the annuity annuity elements in the following the contract shall be adjusted in the starting date C has already received from the manner: following manner: insurer dividends of $1,000 each in 1949, (i) If all the annuity elements provide (1) Determine the number of years 1954, and 1959, such dividends not being in for payments to be made in the manner necessary for the guaranteed amount to cludible in his gross income in any of those be fully paid by dividing the maximum years. C’s investment in the contract, as described in § 1.72-2 (b) (3), the invest of the annuity starting date, will then be ment in the contract shall be allocated amount guaranteed as of the annuity $72,000 ($75,000-$3,000). on the basis of the amounts received by starting date by the amount to be re each recipient by apportioning the ceived annually under the contract. The (b) Allocation of the investment inamount determined to be excludable un number of years should be stated in the contract where two or more annuity der that section to each recipient in the terms of the nearest whole year, con elements are acquired for a single con same ratio as the total of the amounts sidering for this purpose a fraction of sideration. (1) In the case of a contract received by him in his taxable year bears * one-half or more as an additional whole described in § 1.72-2 (a) (2) which pro to the total of the amounts received by year. vides for the payment of fixed amounts all recipients during the same period; (2) Consult Table HI of § 1.72-9 for to two or more persons, the investment and the appropriate percentage under the in the contract determined under para (ii) If one or more, but not all, of the whole number of years found in (1) and graph (a) shall be allocated to each of annuity elements provide for payments the age and sex of the annuitant at the the annuity elements in the ratio that to be made in a manner described in annuity starting date. the expected return under each annuity § 1.72-2 (b) (3)— * (3) Multiply the percentage found m element bears to the aggregate of the (a) With respect to all annuity ele (2) by whichever of the following is the expected returns under all the annuity smaller: (i) the investment in thè con elements. This allocation shall be made ments to which that section does not apply, the investment in the contract for tract found in accordance with § 1.72-6 by dividing the investment in the con or (ii) the total amount guaranteed as or tract (after adjustment for the present all such elements shall be the portion of the investment in the contract as a whole the annuity starting date. value of any or all refund features) by (4) Subtract the amount found in (3> the aggregate of the expected returns (found in accordance with the provisions of this section) which is properly allo from the investment in the contract under all the annuity elements. The re cable to all such elements; and found in accordance with § 1.72-6. sult is an exclusion ratio for the contract (b) With respect to all annuity ele The resulting amount is the investm ent as a whole. Thus, if a contract provides ments to which § 1.72-2 (b) (3) does in the contract adjusted for the present for annuity payments of $1,000 per year apply, the investment in the contract value of the refund feature without dis for life (with no refund feature! to both for all such elements shall be the in count for interest and is to be used in de A and B, a male and female, respectively, vestment in the contract as a whole termining the exclusion ratio to be ap each 70 years of age as of the annuity (found in accordance with the provisions plied to the payments r e c e i v e d as an 4M Thursday, January 19, 1956 FEDERAL REGISTER 383 annuity. Hie percentage found in (2) Amounts contributed by an em Table IH shall not be adjusted in a man Number of years difference in age (2 male Addition to ployer which were not includible in the annuitants or 2 female annuitants) older age ner prescribed in § 1.72-5 (a) (2). These in years gross income of the employee under this principles may be illustrated by the fol subtitle or prior income tax laws, but lowing example: 0to 1.inclusive...... _ 9 which would have been includible there 2 to 3r inclusive______T __,___ 8 Example. On January 1, 1954, a husband, to 5. inclusive___-______I______74 in had they been paid directly to the age 65, purchased for $21,053, an immediate 6 to 8, inclusive. ______6 employee, do not constitute considera installment refund annuity payable $100 per 9 to 11, inclusive... ______5 tion paid or contributed by the employee month for life. The contract provided that 12 to 15, inclusive _ . . . 4 16 to 20. inclusive______. 3 for the purposes of section 72. For ex in the event the husband did not live long 21 to 27, inclusive______a ample, contributions made by an em enough to recover the full purchase price, 28 to 42, inclusive.. _ __ _. __ i payments were to be made to his wife until Over 42...... o ployer under a qualified employees’ trust the total payments under the contracts or plan which would have been, includible equaled the purchase price. The investment in the gross income of the employee.had in the contract adjusted for the purpose of (5) Consult Table IH for the appro such contributions been paid to him determining the exclusion ratio is computed priate percentage under the whole num directly as compensation do not con in the following manner: ber of years found in subparagraph (1) stitute consideration paid or contributed Cost of the annuity contract (in and the sex and age of the elder annui by the employee. Accordingly, the ag vestment in the contract, unad tant as adjusted under subparagraph gregate amount of premiums or other justed)______$21,053 (4). consideration paid or contributed by an Amount to be received an (6) Subtract thè value obtained in employee, insofar as compensatory em nually ______$1,200 subparagraph (5) from the sum of the ployer contributions are concerned, con Number of years for which percentages found under subparagraph payment guaranteed ($21,- sists solely of the (i) sum of all amounts (3). actually contributed by the employee, 053 divided by $1,200)____ 17.5 (7) Multiply the percentage found in Rounded to nearest whole plus (ii) contributions in the nature of number of years______18 (6) by whichever of the following is the compensation which are deemed to be Percentage located in Table smaller: (i) the investment in the con paid or contributed by the employee IH for age 65 (age of the tract found in accordance with § 1.72-6 under subparagraph (1). annuitant as of the an or (ii) the total amount guaranteed as of (b) Contributions in the nature of nuity starting date) and the annuity starting date. death benefits. In the case of an em 18 (the number of whole (8) Subtract the amount found in (7) years) (percent)______30 ployee’s beneficiary, the aggregate from the investment in the contract amount of premiums or other considera Subtract value of the refund fea found in accordance with § 1.72-6. ture to the nearest dollar (30 tion paid or deemed to be paid or con percent of $21,053)___ - ______6,316 (d) This section shall be disregardedtributed by the employee shall also in in the case of any contract which pro clude: Investment in the contract adjusted vides for an annuity or an annuity ele (i) Amounts (other than amounts paid for the present value of the re ment payable in the manner described in as an annuity) to the extent such fund feature without discount § 1.72-2 (b) (3). No adjustment of the for interest______14,737 amounts are excludable from the bene investment in the contract with respect ficiary’s gross income as a death benefit If, in the above example, the guaranteed to the present value of a refund feature under section 101 (b), and amount had exceeded the investment in or features shall be made in such cases. (ii) Any amount or amounts of death the contract, the percentage found in § 1.72-8 Effect of certain employer benefits which are treated as additional Table in should have been applied to the contributions with respect to premiums consideration contributed by the em lesser of these amounts since any excess or other consideration paid or contrib ployee under section 101 (b) (2) (D) and of the guaranteed amount over the in uted by an employee—(a) Contributions the regulations thereunder, or which vestment in the contract (as found under in the nature of compensation. (1) were excludable from the beneficiary’s §1.72-6) would not have constituted a Section 72 (f) provides that, for the gross income as a death benefit under refund of premiums or other considera purposes of section 72 (c), (d ), and (e), section 22 (b) (1) (B) of the Internal tion paid. amounts contributed by an employer for Revenue Code of 1939 and the regulations (c) Adjustment of investment for the the benefit of an employee or his bene thereunder. refund feature in the case of a joint and ficiaries shall constitute consideration Accordingly, in the case of an employee’s survivor annuity. Where a joint and paid or contributed by the employee to beneficiary, any such amount shall be survivor annuity contract described in the extent that: added to any amount or amounts deemed § 1.72-5 (b) (1) or (6) contains a refund (i) Such amounts were includible in paid or contributed by the employee feature, the investment in the contract the gross income of the employee under under paragraph (a) (1) and to any shall be adjusted in the following this subtitle or prior income tax laws, or amounts actually contributed by the em manner: (ii) Such amounts would not have ployee for the purpose of finding the ag (1) Determine the number of years nec been includible in the gross income of gregate amount of premiums or other essary for the guaranteed amount to be fully the employee at the time contributed consideration paid or contributed by the Paid by dividing the maximum amount guar had they been paid directly to the em employee. anteed as of the annuity starting date by ployee at that time. Jae amount to be received annually under § 1.72-9 Tables. The following tables Joe contract. The number of years should Amounts to which subdivision (i) applies are to be used in connection with com De stated in terms of the nearest whole year, include, for example, contributions made putations under section 72 and the'regu considering for this purpose a fraction of by an employer under a plan which fails lations thereunder: oe-half or more as an additional whole year. to qualify under the provisions of section (2) Consult Table m of § 1.72-9 for the 401 (a), provided that the employee’s T a b l e I—O r d i n a r y L i f e A n n u i t i e s —O n e PPropriate percentages under the whole rights to such contributions or under the L i f e —E x p e c t e d R e t u r n M u l t i p l e s , Umkfr of years found in (1) and the age plan are nonforfeitable at the time the (Text of table same as In 26 CFR (1954), las of the annuity starting date) and sex Temp. Rule 1,19 F. R. 9896] n ,eai;h annuitant. If the annuitants are contributions are made. See sections annn 6 same sex, substitute for the female 402 (b) and 403 (b) and the regulations T a b l e n — O r d i n a r y J o i n t L i f e a n d L a s t ®~tiant a male annuitant 5 years younger, thereunder. Amounts to which sub S u r v iv o r A n n u i t i e s —Two L i v e s —E x p e c t e d nmt ma*e annuitant a female an division (ii) applies include, for example, R e t u r n M u l t i p l e s nuitant 5 years older, so that Table III will contributions made by an employer on [Text of table same as in 26 CFR (1954), an«CIiiered *n both cases with the ages of account of foreign services rendered by Temp. Rule 1,19 F. R. 9896] annuitants of the same sex. an employee during a period in which fonnH rin Ages Temporary period—maximum duration of annuity Years Male Female 11 12 13 14 15 16 17 18 19 20 Oto 8 Oto 13 10.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.7 9 14 10.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.7 10 15 10.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.7 11 16 10.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.7 12 17 10.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 -18.8 19.7 13 18 10.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.7 14 19 10.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.7 15 20 10.9 11.9 12.9 13.9 14.9 15.8 16.8 * 17.8 18.7 19.7 16 21 10.9 11.9 12.9 13.9 14.8 15.8 16.8 17.8 18.7 19.7 17 22 10.9 11.9 12.9 13.9 14.8 15.8 16.8 17.8 18.7 19.7 18 23 10.9 11.9 12.9 13.9 14.8 15.8 16.8 17.8 18.7 19.7 19 24 10.9 11.9 12.9 13.9 14.8 15.8 16.8 17.7 18.7 19.7 20 25 10.9 11.9 12.9 13.9 14.8 15.8 16.8 17.7 18.7 19.7 21 26 10.9 11.9 12.9 13.8 14.8 15.8 16.8 17.7 18.7 19.6 22 27 10.9 11.9 12.9 13.8 14.8 15.8 16.7 17.7 18.7 19.6 23 28 10.9 11.9 12.9 13.8 14.8 15.8 16.7 17.7 18.7 19.6 24 29 10.9 11.9 12.9 13.8 14.8 15.8 16.7 17.7 18.6 19.6 25 30 10.9 11.9 12.8 13.8 - 14.8 15.7 16.7 17.7 18.6 19.6 26 31 10.9 11.9 12.8 13.8 14.8 15.7 16.7 17.6 18.6 19.5 27 32 10.9 11.9 12.8 13.8 14.8 15.7 16.7 17.6 18.6 19.5 28 33 10.9 11.8 12.8 13.8 14.7 15.7 16.6 17.6 18.5 19.5 29 34 10.9 11.8 12.8 13.8 14.7 15.7 16.6 17.6 18.5 19.4 MAKING RULE PROPOSED 30 35 10.9 11.8 12.8 13.7 14.7 15.6 16.6 17.5 18.4 19.4 31 36 10.8 11.8 12.8 13.7 14.7 15.6 16.5 17.5 18.4 19.3 32 37 10.8 11.8 12.7 13.7 14.6 15.6 16.5 17.4 18.4 19.3 33 38 10.8 11.8 12.7 13.7 14.6 15.6 16.5 17.4 18.3 19.2 34 39 10.8 11.8 12.7 13.6 14.6 15.5 16.4 17.4 18.3 19.2 35 40 10.8 11.7 12.7 13.6 14.6 15.5 16.4 17.3 18.2 19.1 36 41 10.8 11.7 12.7 13.6 14.5 15.4 16.3 17.2 18.1 19.0 37 42 10.8 11.7 12.6 13.6 14.5 15.4 16.3 17.2 18.1 18.9 38 43 10.7 11.7 12.6 13.5 14.4 15.3 16.2 17.1 18.0 18.9 39 44 10.7 11.6 12.6 13.5 14.4 15.3 16.2 17.1 17.9 18.8 40 45 10.7 11.6 12.5 13.5 14.4 15.2 16.1 17.0 17.8 18.7 41 46 10.7 11.6 12.5 13.4 14.3 15.2 16.1 16.9 17.8 18.6 42 47 10.6 11.6 12.5 13.4 14.3 15.1 16.0 16.8 17.7 18.5 43 48 10.6 11.5 12.4 13.3 14.2 15.1 15.9 16.7 17.6 18.4 44 49 10.6 11.5 12.4 13.3 14.1 15.0 15.8 16.7 17.5 18.3 45 50 10.5 11.4 12.3 13.2 14.1 14.9 15.7 16.6 17.4 18.1 46 . 51 10.5 11.4 12.3 13.2 14.0 14.8 15.7 16.5 17.2 18.0 47 52 . 10.5 11.4 12.2 13.1 13.9 14.7 15.6 16.3 17.1 17.8 48 53 10.4 11.3 12.2 13.0 13.8 14.7 16.4 16.2 17.0 17.7 49 54 10.4 11.3 12.1 12.9 13.8 14:6 15.3 16.1 16.8 17.5 50 55 10.3 11.2 12.0 12.9 13.7 14.5 15.2 16.0 16.7 17.4 61 56 10.3 11.1 12.0 12.8 13.6 14.3 15.1 15.8 16.5 ..... ___ 57 11 1 11 9 12. 7 13. 5 14.2 14.9 15.6 53 58 10.2 11.0 11.8 12.6 13.4 14.1 ■ 14.8 54 59 10 1 10 9 11. 7 12. 5 13.2 14.0 55 lo 10 1 10 9 11. 6 12. 4 13.1 56 41 10 0 10. 8 11. 5 12 3 57 C2 9.9 10.7 11.4 58 63 9.8 10.6 59 64 9.8 Thursday, January 19, 1956 FEDERAL REGISTER 385 Table IV—Tempobart Lite Annuities i—One Lite—E xpected R eturn Multiples—Continued treatment of amounts received subse quent to both the above dates by such Ages Temporary period—maximum duration of annuity transferee, but not received as annuity payments, see § 1.72-11. Years § 1.72-11 Amounts not received as Male Female annuities—(a) Amounts received in the 21 22 23 24 25 26 27 28 29 30 nature of dividends or similar distribu tions. (1) In the case of dividends or Oto 8 0 to 13 20.7 21.7 22.7 23.6 24.6 25.6 26.5 27.5 28.4 29.4 payments in the nature of dividends re 9 14 20.7 21.7 22.7 23.6 24.6 25.5 26.5 27.5 28.4 29.4 10 15 20.7 21.7 22.7 23.6 24.6 25.5 26.5 27.5 28.4 29.4 ceived under a contract to which section 11 16 20.7 21.7 22.6 23.6 24.6 25.5 26.5 27.4 28.4 29.3 72 applies, if such payments are received 12 17 20.7 21.7 22.6 23.6 24.6 25.5 26.5 27.4 28.4 29.3 before the annuity starting date or be 13 18 20.7 21.7 22.6 23.6 24.6 25.5 26.5 27.4 28.4 29.3 14 19 20.7 21.7 22.6 23.6 24.5 25.5 26.4 27.4 28.3 29.3 fore the date on which an amount is first 15 20 20.7 21.6 22.6 23.6 24.5 25.5 26.4 27.4 28.3 29.2 received as an annuity, whichever is the 16 21 20.7 21.6 22.6 23.6 24.5 25.5 26.4 27.3 28.3 29.2 17 22 20.7 21.6 22.6 23.5 24.5 25.4 26.4 27.3 28.2 29.2 later, such payments are includible in 18 23 20.7 21.6 22.6 23.5 24.5 25.4 26.3 27.3 28.2 29.1 the gross income of the recipient only to 19 24 20.6 21.6 22.5 23.5 24.4 25.4 26.3 27.2 28.1 29.1 20 25 20.6 21.6 22.5 23.5 24.4 25.3 26.3 27.2 28.1 29.0 the extent that they, taken together with 21 26 " 20.6 21.5 22.5 23.4 24.4 25.3 26.2 27.1 28.0 28.9 all previous payments which were ex 22 27 20.6 21.5 22.5 23.4 24.3 25.3 26.2 27.1 28.0 28.9 23 28 20.6 21.5 22.4 23.4 24.3 25.2 26.1 27.0 27.9 28.8 cludable from the gross income of the 24 29 20.5 21.5 22.4 23.3 24.2 25.2 26.1 27.0 27.8 28.7 recipient under the applicable income 25 30 20.5 21.4 22.4 23.3 24.2 25.1 26.0 26.9 27.8 28.6 26 31 20.5 21.4 22.3 23.2 24.1 25.0 25.9 26.8 27.7 28.5 tax law, exceed the aggregate of premi 27 32 20.4 21.3 22.3 23.2 24.1 25.0 25.8 26.7 27.6 28.4 ums or other consideration paid or 28 33 20.4 21.3 22.2 23.1 24.0 24.9 25.8 . 26.6 27.5 28.3 deemed to have been paid by the recipi 29 34 20.3 21.2 22.1 23.0 23.9 24.8 25.7 26.5 27.4 28.2 30 35 20.3 21.2 22.1 23.0 23.8 24.7 25.6 26.4 27.2 28.1 ent. In determining the recipient’s in 31 36 20.2 21.1 22.0 22.9 23.8 24.6 25.5 26.3 27.1 27.9 vestment in the contract, payments not 32 37 20.2 21.1 21.9 22.8 23.7 24.5 25.4 26.2 27.0 27.8 33 38 20.1 21.0 21.9 22.7 23.6 24.4 25.2 26.0 26.8 27.6 includible in the recipient’s gross income 34 39 20.0 20.9 21.8 22.6 23.5 24.3 25.1 25.9 26.7. 27.4 under the above rule shall be subtracted 35 40 20.0 20.8 21.7 22.5 23.3 24.2 25.0 25.7 26.5 27.2 36 41 19.9 20.7 21.6 22.4 23.2 24.0 24.8 25.6 26.3 27.0 from the aggregate amount of premiums 37 42 19.8 20.6 21.5 22.3 23.1 23.9 24.6 25.4 26.1 26.8 or other consideration paid or deemed to 38 43 19.7 20.5 21.4 22.2 23.0 23.7 24.5 25.2 25.9 26.6 have been paid. Such payments shall 39 44 19.6 20.4 21.2 22.0 22.8 23.6 24.3 25.0 25.7 26.4 40 45 19.5 20.3 21.1 21.9 22.6 23.4 24.1 24.8 25.5 26.1 also be subtracted from the considera 41 46 19.4 20.2 21.0 21.7 22.5 23.2 23.9 24.6 25.2 21 fi 22 3 23.0 23.7 24.3 tion contributed by an employee for pur 43 20 7 21.4 22.1 22.8 23.4 poses of section 72 (d) and § 1.72-13, 44 20 5 21.2 21.9 22.6 relating to employee contributions re 45 IQ 6 20 3 21.0 21.7 46 61 1« 7 IQ 4 20.1 20.8 coverable in three years. 47 62 IQ 3 19.9 (2) If dividends or payments in the 48 63 18 4 19.1 49 54 18.2 naturq of dividends are paid under a con tract to which section 72 applies and such payments are received on or after 1 The multiples in this table are not applicable to annuities for a term certain; for such cases see § 1.72-5 (c). the annuity starting date or the date on If the terms of the contract (a) involve received by the transferee before the re which an amount is first received as an a life or lives, (b) are such that the above ceipt of an amount as an annuity or be annuity, whichever is later, such pay tables cannot be correctly applied, and fore the annuity starting date, whichever ments shall be fully includible in the (c) the amounts received thereunder are is the later, to the extent that such gross income of the recipient. The re “amounts received as an annuity” under amounts were excludable from his gross, ceipt of such payments shall not affect a contract to which section 72 applies, income under the applicable income tax the aggregate of premiums or other con the taxpayer may submit with his return law at the time of receipt. For the sideration paid nor the amounts con an actuarial computation based upon the treatment of amounts received by the tributed or deemed to have been con 1937 Standard Annuity Table with ages transferee subsequent to both the an tributed by an employee as otherwise cal set back one year, showing the appropri nuity starting date and the date of re culated for purposes of section 72. Since ate factors applied in his case, subject to ceipt of a payment as an annuity, but not the investment in the contract and the the approval of the Commissioner upon received as annuity payments, see § 1.72- expected return are not affected by a examination of such return. Computa 11. For a limitation on adjustments to payment which is fully includible in the tions involving factors to compensate for the basis of annuity contracts sold, see gross income of the recipient under this the effects of contingencies other than section 1021. rule, the exclusion ratio will not be af Mortality, such as marriage or remar (b) In the case of a transfer of such afected by such payment and will continue riage, re-employment, recovery from dis contract without valuable consideration, to be applied to amounts received as an ability, or the like, will not be approved. the annuity starting date and the ex nuity payments in the future as though § 1.72-10 Effect of transfer of con- pected return under the contract shall such payment had not been made. tracts on investment in the contract. be determined as though no such trans (b) Amounts received in the nature of (a) if a contract to which section 72 ap fer had taken place. See § 1.72-4 (b). a refund of the consideration under a plies, or any interest therein, is trans- The transferee shall include the aggre contract and in full discharge of the lerred for a valuable consideration, by gate of premiums or other consideration obligation thereof. (1) Any amount re paid or deemed to have been paid by his ceived which is at least in part a refund assignment or otherwise, only the actual transferor in the aggregate of premiums of the consideration paid under a con value of the consideration given for such or other consideration as though paid by tract to which section 72 applies and transfer and the amount of premiums or him. In determining the transferee’s which is in full discharge of an obligation other consideration subsequently paid by investment in the contract, the trans to pay a fixed amount (whether in a lump tne transferee shall be included in the feree’s aggregate amount of premiums sum or otherwise) shall be included in transferee’s aggregate of premiums or or other consideration paid (as so found) the gross income of the recipient only to other consideration paid. In accordance shall be reduced by all amounts either the extent that it, when added to provisions of section 72 (g) (3) received or deemed to have been received amounts previously received under the ria? ^ 3-i^2-4 (b), an annuity starting ate shall be determined for the trans- by himself or his transferor before the contract which were excludable from annuity starting date, or before the date gross income under the law applicable at ,re®. without regard to the annuity on which an amount is first received as the time of receipt, exceeds the aggre i n * 18 date, if any, of the transferor, an annuity, whichever is the later, to the gate of premiums or other consideration determining the transferee’s invest- extent that such amounts were exclud paid. See section 72 (e) (2) (A). If the ani I11 cottteact, the aggregate able from the gross income of the actual amounts received in discharge of the fpount of premiums or other considera- recipient under the applicable income obligation constitute “amounts re on Pa^d shall be reduced by all amounts tax law at the time of receipt. For ceived as an annuity” as that term is de- No. 12---- 5 386 PROPOSED RULE MAKING fined in § 1.72-2 (b), the rule prescribed ficiary, elects to receive the remaining 1954, or the first day of the first period in the preceding sentence shall only ap guaranteed amount in installments which for which an amount is received as an ply if the total of the amounts to be paid are larger or smaller than the $75 per month provided until the terms of the contract annuity thereunder, whichever is the in discharge of the obligation cannot in under the guaranteed amount is exhausted. later. See § 1.72-4 (b). any event exceed the fixed amount which The rule of subparagraph (1) and the com (e) Limit on tax attributable to the would otherwise fully discharge the obli putation illustrated in example (1) apply to receipt of a lump sum. If the entire gation. For rules to be applied in a case such installments since the total of such amount of the proceeds received upon in which the total of the amounts to be Installments will not exceed the original the redemption, maturity, surrender, or paid as an annuity may exceed such fixed amount guiaranteed to be paid at A’s death discharge of a contract to which section amount, see paragraph (d). in any event, 72 applies is received in a lump sum and (2) The principles of subparagraph (3) For the purpose of applying theparagraph (b) or (c) of this section is (1) may be illustrated by the following rule contained in subparagraph (1), it is applicable in determining the portion examples: immaterial whether the recipient of the of such amount which is includible in Example (1). A, a male employee, retired amount received in full discharge of the gross income, the tax attributable to on December 31, 1954, at the age of 60. A obligation is the same person as the such portion shall not exceed the tax life annuity of $75 per month was payable recipient of amounts previously received which would have been attributable to him beginning January 31, 1955. The under the contract which were exclud thereto had such portion been received annuity contract guaranteed that if A did able from gross income, except in the ratably in the taxable year in which re not live at least ten years, his beneficiary, B, ceived and the two preceding taxable would receive the monthly payments for any case of a contract transferred for a balance of the first ten years after A’s retire valuable consideration, with respect to years. The amount of tax attributable ment which remained at the date of A’s which see § 1.72-10 (a). For the limit to the includible portion of the lump death. Under section 72, A was deemed to on the tax attributable to the receipt of sum received shall be the lesser of: have paid $3,600 toward the cost of the an a lump sum to which this paragraph . (1) The difference between the nuity. A lived for five years, receiving a total applies, see paragraph (e), below. amount of tax for the taxable year of of $4,500 in annuity payments. After A’s (c) Amounts received upon the sur receipt computed by including such por death, B began receiving the monthly pay render, redemption, or maturity of a tion in gross income and the amount of ments of $75 beginning with the January 31, tax for such taxable year computed by 1960, payment. B will exclude such pay contract. (1) Any amount received upon ments from his gross income throughout the surrender, redemption, or maturity excluding such portion from gross in 1960, 1961, and 1962, and will exclude $18 of of a contract to which section 72 applies, come; or the first payment in 1963 from his gross in which is not received as an annuity (2) The difference between the total come for that year. Thereafter, B will in under the rules of § 1.72-2 (b), shall be amount of tax for the taxable year of clude the entire amount of all such pay included in the gross income of the re receipt and the two preceding taxable ments in his gross income for the taxable cipient to the extent that it, when added years computed by including one-third year of receipt. This result is determined of such portion in gross income for each as follows: to amounts previously received under the contract and which were excludable from of the three taxable years, and the total A’s investment in the contract (un gross income of the recipient under the amount of the tax for the taxable year adjusted)______$3,600 law applicable at the time of receipt, of receipt and the two preceding taxable Multiple from Table III of years computed by entirely excluding § 1.72-9 for male, age 60, . exceeds the aggregate of premiums or where duration of guaran other consideration paid. See section 72 such portion from the gross income of teed amount is 10 years (e) (2) (B). If, however, the amounts all three taxable years. (percent)______>______11 received upon the surrender, redemption For the definition of "taxable year”, see Subtract value of the refund fea or maturity of such a contract are re section 441 (b). This paragraph shall ture to the nearest dollar (11 per cent of $3,600)______J 396 ceived as an annuity, the rule of para not apply to payments excepted from the graph (d) shall apply. application of section 72 (e) (3) under Investment in the contract adjusted (2) For the purpose of applying thethe provisions of section 402 or 403. See for the present value of the re rule contained in subparagraph (1), it is §§ 1.72-2 (a) and 1.72-14 (d). fund feature without discount immaterial whether the recipient of the (f ) Amounts deemed to be paid or re for interest__ - ______3,204 amount received upon the surrender, ceived by a transferee. Amounts deemed redemption, or maturity of the contract to have been paid or received by a trans Aggregate of premiums or other con is the same as the recipient of amounts feree for the purposes of § 1.72-10 shall sideration paid______3,600 A’s exclusion ratio ( $3,204 -f- previously received under the contract also be deemed to have been so paid or [ $900 x 18.2 ] ) ( percent ) ___ 19. 6 which were excludable from gross in received by such transferee for the pur Subtract amount excludable during come, except in the case of a contract poses of this section. Thus, if a donee five years A received payments transferred for a valuable consideration, is deemed to have paid the premiums or (19.6 percent X $900X5)—______882 with respect to which see § 1.72-10 (a ). other consideration actually paid by his For the limit on the amount of tax at transferor for the purposes of section 72 Remainder of aggregate of premiums tributable to the receipt of a lump sum (g) and § 1.72-10 (b), such consideration or other consideration paid exclud able from gross income of B under to which this paragraph applies, see shall be deemed premiums or other con section 72 (e)______2 ___ — 2,718 paragraph (e), below. sideration paid by the donee for the pur (d) Amounts received to which the poses of this section. As a result of the above computation, the provisions of paragraphs (a), (b), and number of payments to B which will ex § 1.72-12 Effect of taking an annuity haust the remainder of consideration paid (c) do not apply. If paragraphs (b) and in lieu of a lump sum upon the maturity which is excludable from gross income of the (c) do not apply to amounts received of a contract. If a contract to which recipient is 36% ($2,718-r-$75) and B will upon the redemption, maturity, sur section 72 applies provides for the pay exclude the payments from his gross income render, or discharge of a contract to ment of a lump sum in full discharge of for three years, then exclude $18 of the first which section 72 applies, such amounts the obligation thereunder and the obligee payment for the fourth year from his gross shall not be considered to be received entitled thereto, prior to receiving any income, and thereafter include the entire under the particular contract which ma amount of all payments he receives in his portion of such lump sum and within 60 gross income. tured or was surrendered, redeemed, or discharged. However, such amounts re days after the date on which such lump Example (2). The facts are the same as in ceived shall be considered to be received sum first becomes payable, exercises an example (1), except that B, the beneficiary, option or irrevocably agrees with the elects to receive $50 per month for his life as an annuity under a contract ex in lieu of the payments guaranteed under changed for the contract whose redemp obligor to take, in lieu thereof, payments the original contractual obligation. Since tion, maturity, surrender, or discharge which will constitute "amounts received such amounts will be received as an an was involved. For the purpose of de as an annuity”, as that term is defined nuity and may, because of the length of termining the extent to which amounts in § 1.72-2 (b), no part of such lump time B may live, exceed the amount guaran so received are to be included in the sum shall be deemed to have been re teed, they are not amounts to which this paragraph applies. See paragraph (d). gross income of the recipient, an exclu ceived by the obligee at the time he was Example (3). The facts are the same as sion ratio shall be determined for such first entitled thereto merely because h in example (1), except that B, the bene contract as of the later of January 1, would have been entitled to such amoun Thursday, January 19, 1956 FEDERAL REGISTER 387 had he not exercised the option or made Internal Revenue Code of 1954 applies, titled to make and do make a single such an agreement with the obligor. they shall be included in the gross in return jointly. come of the recipient in accordance with (c) Certain “face-amount certificates.” §1.72-13 Special rule for employee the provisions of §1.72-11. Thus, if The principles of section 72 do not apply contributions r e c o v e r a b l e in three such amounts are received as a dividend to “face-amount certificates” described years— (a) Amounts received as an an after the date on which an amount is in section 72 (e) which were issued be nuity. (1) Section 72 (d) provides a first received as an annuity under the fore January 1, 1955. special rule for the treatment of amounts contract, they shall be included in the •(d) Employer plans. The provisions received as an annuity by an employee gross income of the recipient in accord of §§ 1.72-1 to 1.72-13, inclusive, shall be (or by the beneficiary or beneficiaries of ance with section 72 (e) (1) (A) and disregarded to the extent that they are an employee) under a contract to which §1.72-11 (a) (2). All other amounts inconsistent with the treatment of section 72 applies. This special rule is not received as an annuity shall be in amounts received provided in section 402 applicable only in the event that: cluded in the gross income of the recip (relating to the taxability of a benefici (i) Part, but not all, of the considera ient in accordance with the provisiorls of ary of an employees’ trust), section 403 tion paid for the contract is contributed section 72 (e) (1) (B) and paragraphs (relating to the taxation of employee by the employer, and (b) and (c) of § 1.72-11. See section annuities), or the regulations under (ii) The aggregate amount receivable 72 (e) (2). either of such sections. as an annuity under such contract by the (c) Amounts received after the ex § 1.1021 Statutory provisions; sale of employee for by his beneficiary or bene haustion of employee contributions. (1) ficiaries if the employee died before any Amounts received under a contract to annuities. amount was received as an annuity un which the rule of paragraph (a) applies Sec. 1021. Sale of annuities. In case of der the contract) within the 3-year pe (whether or not such amounts are re the sale of an annuity contract, the ad riod beginning on the date (whether or ceived as an annuity) shall be included justed basis shall in no case be less than not before January 1, 1954) on which in the gross income of the recipient if zero. an amount is first received as an annuity such amounts are received after the date § 1.1021-1 Sale of annuities. In the equals or exceeds the total consideration on which the aggregate of all amounts case of a transfer for value of an an contributed (or deemed contributed) by excluded from gross income by the re nuity contract to which section 72 (g) the employee as of such date. cipients under section 72 (d) and prior and § 1.72-10 apply, the transferor shall In such an event, section 72 (d) provides income tax laws equalled or exceeded adjust his basis in such contract as of that all amounts received as an annuity the consideration contributed (or deemed the time immediately prior to such under the contract during a taxable year contributed) by the employee. transfer by subtracting from the pre to which the Internal Revenue Code of (2) If the rule of paragraph (a) ap miums or other consideration he has 1954 applies shall be excluded from gross plies to amounts received by an employee paid or is deemed to have paid for such income until the total of the amounts (or his beneficiary or beneficiaries) un contract all amounts he has received or excluded under that section plus all der a joint and survivor annuity con is deemed to have received under such amounts excluded under prior income tract, payments made to a prior an annuity contract to the extent that such tax laws equals or exceeds the considera nuitant may entirely exhaust the amounts were not includible in the gross tion contributed (or deemed contri amounts excludable from gross income. income of the transferor or other recipi buted) by the employee. The excess, if In such case, amounts paid to the surviv ent under the applicable income tax law. any, and all amounts received by any ing annuitant (or annuitants) shall be In any case where the amounts which recipient thereafter (whether or not re included in gross income by such were not includible in the gross income ceived as an annuity), shall be fully in recipients. of the recipient were received or deemed cluded in gross income. See paragraph (d) Inapplicability, of section 72 (d) to have been received by such transferor (b), below. and this section. Section 72 (d) and exceed the amounts paid or deemed paid (2) If the aggregate amount receiv this section do not apply to amounts re by him, the adjusted basis of the con able as an annuity under the contract ceived as proceeds of a life insurance tract shall be zero. The incbme realized within three years from the date on contract to which section 101 (a) applies, by the transferor on such a transfer which an amount is first received as an nor to amounts paid to a surviving an nuitant under a joint and survivor shall not exceed the total of the annuity thereunder will not exceed the amounts received as consideration for consideration contributed (or deemed annuity contract to which § 1.72-5 (b) contributed) by the employee in accord (3) applies. See also § 1.72-14 (d). the transfer. ance with the provisions of § 1.72-8, § 1.72-14 Exceptions from applica § 1.1035 Statutory provisions; certain computed as of such date, the special tion of principles of section 72—(a) Pay exchanges of insurance policies. rule of section 72 (d) shall not apply to ments of interest. If any amount is Sec. 1035. Certain exchanges of insurance amounts received as an annuity under received under an agreement to pay in policies—(a) General rules. No gain or loss the contract and the general rules of terest on a sum or sums held by the shall be recognized on the exchange of— section 72 shall apply thereto. obligor, such amount shall ^not be ex (1) A contract of life insurance for an (3) The aggregate of the amounts re cludable from the gross income of the other contract of life insurance or for an ceivable as an annuity within the pre* recipient under the provisions of section endowment or annuity contract; or scribed 3-year period shall be the total 72 to the extent that it is an actual in (2) A contract of endowment insurance— °f all annuity payments anticipatable by terest payment. See section 72 (j). (A) For another contract of endowment an employee (or a beneficiary or bene For example, an amount shall be con insurance which provides for regular pay ficiaries of an employee, if thé employee ments beginning at a date not later than the sidered to be held under an agreement date payments would have begun under the died before any amount was received as to pay interest thereon if the amount contract exchanged, or an annuity) under the contract as a payable after the term of the annuity (B) For an annuity contract; or whole as defined in § 1.72-2 (a). (whether for a term certain or for a life (3) An annuity contract for an annuity (4) if subparagraph (1) of this para or lives) is substantially equal to or contract. graph applies to amounts received as an larger than the aggregate amount of (b) Definitions. For the purpose of this annuity under a contract, the rule pre premiums or other, consideration paid section— scribed , therein shall apply to all therefor. (1) Endowment contract. A contract of amounts so received thereunder regard- (b) Alimony payments. To the extent endowment insurance is a contract with a less of the fact that they may be payable that payments made to a wife are includ life insurance company as defined in section u) to more than one beneficiary, (ii) for ible in her gross income by reason of 801 which depends in part on the life ex the same or different intervals, (iii) in either or both sections 71 and 682, they pectancy of the insured, but which may be different sums, or (iv) for a different payable in full in a single payment during shall not be excluded from the wife’s his life. Period certain, life, or lives. gross income under the principles of (2) Annuity contract. An annuity con (b) Amounts not received as an an- section 72 although made under a con tract is a contract to which paragraph (1) «mfy. if fhg jTjjg 0f paragraph (a) ap tract to which that section applies. applies but which may be payable during the plies to a contract, and amounts are However, section 72 shall apply in the life of the annuitant only in installments. received other than as an annuity there- case of amounts received under such a (3) Life insurance contract. A contract of dhder in a taxable year to which the contract if a husband and wife are en life insurance is a contract to which para- 388 PROPOSED RULE MAKING graph (1) applies but which is not ordinarily writing, in duplicate, to the Commis OTHER INSURANCE COMPANIES payable in full during the life of the insured. sioner of Internal Revenue, Attention: Sec. (c) Cross references. (1) For rules relat 1.831 Statutory provisions; tax on insur ing to recognition of gain or loss where an T:P, Washington 25, D. C., within the ance companies (other than life exchange is not solely in hind, see subsec period of 30 days from the date of pub or mutual), mutual marine in tions (b) and (c) of section 1031. lication of this notice in the F ederal surance companies, and mutual (2) For rules relating to the basis of propR egister. The proposed regulations are fire insurance companies Issuing erty acquired in an exchange described in to be issued under the authority con perpetual policies. subsection (a), see subsection (d) of section tained in section 7805 of the Internal 1.831- 1 Tax on insurance companies (other 1031. Revenue Code of 1954 (68A Stat. 917; 26 than life or mutual), mutual ma rine Insurance companies, and § 1.1035-1 Certain exchanges of in U. S. C. 7805). mutual fire insurance companies surance policies. Under the provisions [seal] O. G ordon D elk, issuing perpetual policies. of section 1035 no gain or loss is recog Acting Commissioner 1.832 Statutory provisions; insurance nized on the exchange of— of Internal Revenue. company taxable income. (a) A contract of life insurance for 1.832- 1 Gross income. another contract of life insurance or for The following regulations, relating to 1.832- 2 Deductions. an endowment or annuity contract (sec taxation of insurance companies, are PROVISIONS OF GENERAL APPLICATION hereby prescribed under subchapter L of tion 1035 (a) (1)); 1.841 Statutory provisions; credit for for (b) A contract of endowment insur chapter 1 of the Internal Revenue Code eign taxes. ance for another contract of endowment of 1954, and are effective for taxable 1.842 Statutory provisions; computation insurance providing for regular pay years beginning after December 31,1953, of gross income. ments beginning at a date not later than and ending after August 16, 1954: I nsurance Companies the date payments would have begun I n s u r a n c e C o m p a n i e s under the contract exchanged, or an an LIFE INSURANCE COMPANIES nuity contract (section 1035 (a) (2)); or LIFE INSURANCE COMPANIES Sec. § 1.801 Statutory provisions; life in (c) An annuity contract for another 1.801 Statutory provisions; life insurance surance companies; definition of life in annuity contract (section 1035 (a) (3)), companies; definition of life in surance company. but section 1035 does not apply to such surance company. 1.801- 1 Definitions. Sec. 801. Definition of life insurance com exchanges if the insured is not a party 1.802 Statutory provisions; life insurance pany. For purposes of this subtitle, the term thereto. The exchange, without recog companies; imposition of taxi “life insurance company” means an insur nition of gain or loss, of an annuity con 1.802- 1 Tax on life insurance companies. ance company which is engaged in the busi tract for another annuity contract under 1.803 Statutory provisions; life insurance ness of issuing life insurance and annuity section 1035 (a) (3) is limited to transac companies; other definitions and contracts (either separately or combined with tions to which the obligee of the annuity rules. health and accident insurance), or non- 1.803- 1 Life insurance reserves. cancellable contracts of health and accident agreement is a party. This section and insurance, if its life Insurance reserves (as section 1035 do not apply to transactions 1.803- 2 Adjusted reserves. 1.803- 3 Interest paid or accrued. defined in section 803 (b)), plus unearned involving the exchange of an endow 1.803- 4 Taxable income and deductions. premiums and unpaid losses on noncancell- ment contract or annuity contract for 1.803- 5 Real estate owned and occupied. able life, health, or accident policies not in a life insurance contract, nor an annuity 1.803- 6 Amortization of premium and ac cluded in life insurance reserves, comprise contract for an endowment contract. In crual of discount. more than 50 percent of its total reserves. For purposes of this section, the term "total the case of such exchanges, any gain or 1.804 Statutory provisions; life insurance reserves” means life insurance reserves, un loss shall be recognized. In the case of companies; reserve and other earned premiums and unpaid losses not in exchanges which would be governed by policy liability deduction. cluded in life insurance reserves, and all section 1035 except for the fact that the 1.804- 1 Reserve and other policy liability deduction for life insurance com other insurance reserves required by law. A property received in exchange consists pany taxable income. burial or funeral benefit insurance company not only of property which could other 1.805 Statutory provisions; life insurance engaged directly in the manufacture of fu wise be received without the recognition companies; life insurance com neral supplies or the performance of funeral of gain or loss, but also of other property pany taxable Income. services shall not be taxable under section or money, see section 1031 (b) and (c) 1.805- 1 Tax on life insurance companies in 802 but shall be taxable under section 821 or and the regulations thereunder. Such the case of a taxable year begin section 831. an exchange does not come within the ning in 1954. § 1.801-1 Definitions—(a) Life In 1.805- 2 Reserve interest credit. surance company. The term “life in provisions of section 1035. Determina 1.806 Statutory provisions; life insurance tion of the basis of property acquired in companies; adjustment for cer surance company” as used in subtitle A an exchange under section 1035 (a) shall tain reserves. is defined in section 801. For the purpose be governed by section 1031 (d) and the 1.806- 1 Adjustment for certain reserves. of determining whether a company is a regulations thereunder. 1.807 Statutory provisions; life insurance “life insurance company” within the companies; foreign life insurance meaning of that term as used in section [F. R. Doc. 56-435; Filed, Jan. 18, 1956; companies. 801, it must first be determined whether 8:53 a. m.] 1.807- 1 Foreign life Insurance companies. the company is taxable as an insurance MUTUAL INSURANCE COMPANIES (OTHER THAN company under the Internal Revenue LIFE OR MARINE OR FIRE INSURANCE COM Code. For the definition of an “insur PANIES ISSUING PERPETUAL POLICIES) ance company”, see paragraph (b) of [ 26 CFR (1954) Part 1 ] 1.821 Statutory provisions; tax on mutual this section. In determining whether an I ncome T ax: T axable Y ears B eginning insurance companies (other than insurance company is a life insurance A fter D ecember 31, 1953; Life Insur life or marine or fire insurance company, the life insurance reserves (as ance Companies companies issuing perpetual poli defined in section 803 (b)) plus any un cies) . earned premiums and unpaid losses on NOTICE OF PROPOSED RULE MAKING 1.821-1 Tax on mutual insurance companies noncancellable life, health, or accident other than life or marine or fire Notice is hereby given that, pursuant insurance companies subject to policies, not included in “life insurance to the Administrative Procedure Act, ap the tax imposed by section 831. reserves” m\|gt comprise more than 50 proved June 11, 1946, the regulations set 1.822 Statutory provisions; determina percent of its total reserves (as defined forth in tentative form below are pro tion of mutual insurance com in section 801). An insurance company pany taxable income. writing only noncancellable life, health, posed to be prescribed by the Commis 1.822-1 Taxable income and deductions. or accident policies and having no ‘ lne sioner of Internal Revenue with the 1.822-2 Real estate owned and occupied. insurance reserves” may qualify as a lne approval of the Secretary of the Treas 1.822- 3 Amortization of premium and ac insurance company if its unearned pre ury. Prior to the final adoption of such crual of discount. 1.823 Statutory provisions; other defini miums and unpaid losses on such poli regulations, consideration will be given tions. cies comprise more than 50 percent oi to any data, views, or arguments, per 1.823- Net 1 premiums. its total reserves. A noncancellable in taining thereto which are submitted in 1.823- 2 Dividends to policyholders. surance policy means a contract whicn Thursday, January 19, 1956 FEDERAL REGISTER 389 the insurance company is under an obli (2) 6'/2 percent of the amount thereof in are set aside to mature or liquidate, either excess of $200,000. by payment or reinsurance, future unaccrued gation to renew or continue at a specified claims arising from life insurance, annuity, premium and with respect to which a § 1.802-1 Tax on life insurance com and noncancellable health and accident in reserve in addition to the unearned pre panies. (a) Except' as otherwise pro surance contracts (Including life Insurance mium must be carried to cover that vided in § 1.805-1 with respect to taxable or annuity contracts combined with noncan obligation. A burial or funeral benefit years beginning in 1954, all life insurance cellable health and accident insurance) in insurance company qualifying as a life •companies (including a foreign life in volving, at the time with respect to which insurance company engaged directly in the reserve is computed, life, health, or acci surance company carrying on a life in dent contingencies. Such life insurance re the manufacture of funeral supplies or surance business within the United serves, except in the case of policies covering the performance of funeral services will States if with respect to its United States life, health, and accident insurance combined be taxable under section 821 or section business it would qualify as a,life insur in one policy issued on the weekly premium 831 as an insurance company other than ance company under section 801) are payment plan, continuing for life and not life. subject to both normal tax and surtax. subject to cancellation and except as herein (b) Insurance companies. (1) Insur The tax is imposed on the life insurance after provided in the case of assessment life ance companies include both stock and company taxable income (as defined in insurance, must also be required by law. In the case of an assessment life insurance com mutual companies, as well as mutual section 802) at the rates provided in pany or association, the term “life insurance benefit- insurance companies. A volun section 11. reserves" includes sums actually deposited tary unincorporated association of em (b) The taxable income of life insur by such company or association with State ployees formed for the purpose of re ance companies differs from the taxable or Territorial officers pursuant to law as lieving sick and aged members and the income of other corporations. See sec guaranty or reserve funds, and any funds dependents of deceased members is an tion 803. Life insurance companies are maintained, under the charter or articles of insurance company, whether the fund entitled, in computing life insurance incorporation or association (or bylaws ap for such purpose is created wholly by proved by a State insurance commissioner) company taxable income, to the special of such company or association, exclusively membership dues or partly by contribu deductions provided in part VIII of sub for the payment of claims arising under cer tions from the employer. A corporation chapter B (except section 248). The tificates of membership or policies issued on which merely sets aside a fund for the gross income, the deduction under sec the assessment plan and not subject to any insurance of its employees is not required tion 803 (g) (1) for wholly tax-exempt other use. to file a separate return for such fund, interest, and the deduction under section (c) Adjusted reserves. The term “ad but the income therefrom shall be in 242 for partially tax-exempt interest, are justed reserves” means life insurance reserves cluded in the return of the corporation. decreased by the appropriate amortiza plus 7 percent of that portion of such reserves as are computed on a preliminary term basis. (2) Though its name, charter powers, tion of premium and increased by the (d) Reserve earnings rate. The term “re and subjection to State insurance laws appropriate accrual of discount attrib serve earnings rate” means a rate computed are significant in determining the busi utable to the taxable year on bonds, notes, by adding 2.1125 percent (65 percent of 3% ness which a corporation is authorized debentures, or other evidences of indebt percent) to 35 percent of the average rate of and intends to carry on, the character edness held by a life insurance company. interest assumed in computing life insurance of the business actually done in the tax See section 803 (i) and § 1.803-6. Such reserves. Such average rate shall be calcu able year determines whether it is tax companies are not subject to the provi lated by multiplying each assumed rate of able as an insurance company under the interest by the means of the amounts of the sions of subchapter P (section 1201 and adjusted reserves computed at that rate at Internal Revenue Code, For example, following, relating to capital gains and the beginning and end of the taxable year during the year 1954 the M Corporation, losses) nor to the provisions of section and dividing the sum of the products by the incorporated under the insurance laws 171 (amortizable bond premium). For mean of the total adjusted reserves at the of the State of R, carried on the business computation of the life insurance com beginning and end of the taxable year. of lending money in addition to guar pany taxable income for purposes of the (e) Reserve for deferred dividends. The anteeing the payment of principal and normal tax and surtax, see §§ 1.804-1 and term “reserve for deferred dividends*’ means interest of mortgage loans. Of its total sums held at the end of the taxable year 1.806-1. For computation of the 1954 as a reserve for dividends (other than divi income for the year, one-third was de life insurance company taxable income, dends payable during the year following the rived from its insurance business of see § 1.805-1. taxable year) the payment of which is de guaranteeing the payment of principal (c) All provisions of the Internal Rev ferred for a period of not less than 5 years and interest of mortgage loans and two- enue Code and of these regulations not from the date of the policy contract. thirds was derived from its noninsurance inconsistent with the specific provisions (f) Interest paid. The term "interest business of lending money. The M Cor of sections 801 to 807, inclusive, are ap paid” means—■ poration is not an insurance company for plicable to the assessment and collec (1) All interest paid or accrued within the the year 1954 within the meaning of the taxable year on indebtedness, except on in tion of the tax imposed by section 802, debtedness incurred or continued to pur Code and the regulations thereunder. and life insurance companies are subject chase or carry obligations (other than obli § 1.802 Statutory provisions; life in to the same penalties as are provided in gations of the United States issued after surance companies; imposition of tax. the case of returns and payment of in September 24, 1917, and originally subscribed come tax by other corporations. The re for by the taxpayer) the interest upon which Sec. 802. Imposition of tax—(a) In gen- turn shall be on Form 1120L. is wholly exempt from taxation under this eral. Except as otherwise provided in sub chapter, and section (b), there shall be imposed for each (d) Foreign life insurance companies (2) All amounts in the nature of interest, taxable year on the life insurance company not carrying on an insurance business whether or not guaranteed, paid or accrued taxable income of every life insurance com- within the United States are not taxable within the taxable year on insurance or an «¡W a ^ax consisting of a normal tax and a under section 802, but are taxable as nuity contracts (or contracts arising out of surtax computed as provided in section 11. other foreign corporations. See section insurance or annuity contracts) which do • or purposes of such tax, the term “life 881. not involve, at the time of payment or ac usurance company taxable income” means crual, life, health, or accident contingencies. ue taxable income (as defined in section 803 § 1.803 Statutory provisions; life in (g) Taocable income. The term “taxable en.nanus the reserve and other policy surance companies; other definitions and income” means the gross income less the »nit ^ deduction provided in section 804 rules. following deductions: omh- ?lus tlje am°unt of the adjustment for (1) Tax-free interest. The amount of in rtain reserves provided in section 806. For Sec. 803. Other definitions and rules—(a) terest received or accrued during the taxable of t3le surtax- such taxable income Application of section; gross income—(1) Ap year which under section 103 is excluded d 11 he computed without regard to the plication. The definitions and rules con from gross income. Ho,vC:ion Provided in section 242 for par- tained in this section shall apply only in the (2) Investment expenses. Investment ex (h\ tax'exemPt interest. , case of life insurance companies. penses paid or incurred during the taxable lie Taxable years beginning in 1954. In (2) Gross income. The term "gross in year. If any general expenses are in part the tax imposed by subsection (a) come” means the gross amount of income assigned to or included in the investment ex „i ® shall be imposed, for taxable years be- received or accrued during the taxable year penses, the total deduction under this para cn lnS lu 1954, on the 1954 life insurance from interest, dividends, and rents. graph shall not exceed one-fourth of 1 per tion taxable income (as defined in sec- (b) Life insurance reserves. The termcent of the mean of the book value of the tar _ 005 ) of every life insurance company a "life insurance reserves” means amounts invested assets held at the beginning and 11 sum of the following: which are computed or estimated on the basis end of the taxable year plus one-fourth of iv,' J 3% percent of the amount thereof not of recognized mortality or morbidity tables the amount by which taxable income (com m excess of $200,000, plus and assumed rates of interest, and which puted without any deduction for investment 390 PROPOSED RULE MAKING expenses allowed toy this paragraph, for tax- pursuant to law as guaranty or reserve to be thus adjusted are reserves com free interest allowed by paragraph (1), or funds, and any funds maintained under for partially tax-exempt Interest and divi puted on preliminary term methods, such dends received allowed by paragraph (5)) the charter or articles of incorporation as the Illinois Standard, or the Select and exceeds 3% percent of the book value of the or association of such company or asso Ultimate methods. Only reserves on mean of the invested assets held at the be ciation, or bylaws (approved by the State policies in the modification period are to ginning and end of the taxable year. insurance commissioner) of such com be so adjusted. Where reserves under a (3) Real estate expenses. Taxes and other pany or association, exclusively for the preliminary term method are the same as expenses paid or accrued during the taxable payment of claims arising under certifi on the level premium method, and in the year exclusively on or with respect to the real cates of membership or policies issued case of reserves for extended or paid-up estate owned by the company, not including taxes assessed against local benefits of a kind upon the assessment plan and not sub insurance, no adjustment is to be made. tending to increase the value of the property ject to any other use. The reserves as thus adjusted, and the assessed, and not including any amount paid (c) Life insurance reserves, except as rate of interest on which they are com out for new buildings, or for permanent im otherwise provided in section 803 (b), puted should be reported in Schedule A, provements or betterments made to increase must be required by law either by ex Form 1120L. the value of any property. The deduction press statutory provisions or by rules and allowed by this paragraph shall be allowed in § 1.803-3 Interest paid or accrued. the case of taxes imposed on a shareholder of regulations of the insurance department Interest paid or accrued is one of the ele a company on his interest as shareholder, of a State, Territory, or the District of ments to be used, together with adjusted which are paid or accrued by the company Columbia when promulgated in the ex reserves, reserve earnings rate, and re Without reimbursement from the share ercise of a power conferred by statute, serve for deferred dividends, in arriving holder, but in such cases no deduction shall but such requirement, without more, is be allowed the shoreholder for the amount at the figure to be determined and pro not conclusive; for example, life insur claimed by the Secretary under the of such taxes. ance reserves do not include reserves re (4) Depreciation. The depreciation deduc formula set forth in section 804 (a). See tion allowed by section 167. quired to be maintained to provide for § 1.804-1. Interest paid or accrued is (5) Special deductions. The special de the ordinary running expenses of a busi also one of the elements to be used in ductions allowed by part VIII of subchapter ness which must be currently paid by computing the amount of “required in B (except section 248). every company from its income if its terest” for purposes of determining the (h) Rental value, of real estate. The de business is to continue, such as taxes, reserve interest credit provided in sec duction under subsection (g) (3) and (4) salaries, and unpaid brokerage; nor do on account of any real estate owned and oc tion 805 in the case of taxable years be they include the net value of risks re ginning in 1954. See § 1.805-1. Interest cupied in whole or in part by a life insur insured in other solvent companies; lia ance company shall be limited to an amount paid or accrued consists of (a) interest which bears the same ratio to such deduction bility for premiums paid in advance; lia paid or accrued on indebtedness (except (computed without regard to this subsection) bility for annual and deferred dividends indebtedness incurred or continued to as the rental value of the space not so occu declared or apportioned; liability for purchase or carry tax-exempt securities pied bears to the rental value of the entire dividends left on deposit at interest; lia as set forth in section 803 (f) (1)) and property. bility for accrued but unsettled policy (b) amounts in the nature of interest (i) Amortisation of premium and accrual claims whether known or unreported; of discount. The gross income, the deduc paid or accrued on certain contracts, as liability for supplementary contracts not provided in section 803 (f) (2). Interest tion provided in subsection (g) (1), and the involving, at the time with respect to deduction allowed by section 242 (relating on indebtedness includes interest on to partially tax-exempt interest) shall each which the liability is computed, life, dividends held on deposit and surren be decreased to reflect the appropriate amor health, or accident contingencies. dered during the taxable year but does tization of premium and increased to reflect (d) . In any case where reserves arenot include interest paid or accrued on the appropriate accrual of discount attrib claimed, sufficient information must be deferred dividends the reserve for which utable to the taxable year, on bonds, notes, filed with the return to enable the dis debentures, or other evidences of indebted is used in determining the policy and trict director to determine the validity other liability deduction provided in sec ness held by a life insurance company. Such of the claim. Only reserves which are amortization and accrual shall be deter tion 804. Life insurance reserves as de mined— required by law or insurance depart fined in § 1.803-1 are not indebtedness. (1) In accordance with the method regu ment ruling, which are peculiar to in Dividends left with the company to ac larly employed by such company, if such surance companies, and which are de cumulate at interest are a debt and not method is reasonable, and pendent upon interest earnings for their a reserve liability. Amounts in the na (2) In all other cases, in accordance with maintenance will, except as otherwise ture of interest include so-called excess- regulations prescribed by the Secretary or his specifically provided in section 803 (b), interest dividends as well as guaranteed delegate. be considered as life insurance reserves. (J) Double deductions. Nothing in this interest paid or accrued within the tax part shall permit the same item to be de A company is permitted to make use of able year on insurance or annuity con ducted more than once. the highest aggregate reserve required tracts (or contracts arising out of by any State or Territory or the District insurance or annuity contracts) which § 1.803-1 Life insurance reserves, (a) of Columbia in which it transacts busi do not involve at the time of payment, The term “life insurance reserves” is de ness, but the reserve must have been ac life, health, or accident contingencies. fined in section 803 (b). Generally, such tually held. It is immaterial whether the optional reserves, as in the case of level premium (e) In the case of life insurance com mode of settlement specified in the in life insurance, are held to supplement the panies issuing policies covering life, surance or annuity contract arises from future premium-receipts when the latter, health, and accident insurance combined an option exercised by the insured during alone, are insufficient to cover the in in one policy issued on the weekly pre his or her lifetime or from an option ex creased risk in the later years. In the mium payment plan, continuing for life ercised by a beneficiary after the policy case of cancellable health and accident and not subject to cancellation, it is re has matured, frequently referred to as a policies and similar cancellable contracts, quired that reserve funds thereon be supplementary contract not involving the unearned premiums held to cover based upon recognized mortality or mor life contingencies; for example, a con the risk for the unexpired period covered bidity tables covering disability benefits tract to pay the insurance benefit in 10 by the premiums are not included in life of the kind contained in policies issued annual installments. No distinction is insurance reserves. Unpaid loss reserves by this particular class of companies but made based on the person choosing the for noncancellable health and accident they need not be required by law. method of payment and the full amount policies are included in life insurance of the interest paid or accrued and not reserves if they are computed or esti § 1.803-2 Adjusted reserves. For the purpose of determining the figure to be merely the guaranteed Interest is con mated on the basis of recognized mortal proclaimed by the Secretary under the sidered as interest paid or accrued. ity or morbidity tables and assumed formula set forth in section 804 (a), and § 1.803-4 Taxable income and deduc rates of interest. also for the purpose of determining “re tions—(a) In general. The taxable in (b) In the case of an assessment life quired interest” for taxable years begin come of a life insurance company is its insurance company or association, life ning in 1954, certain reserves compute^ gross amount of income received or ac insurance reserves include sums actually on a preliminary term method are to be crued during the taxable year from in deposited by such company or associa adjusted by increasing such reserves by terest, dividends, and rents, less the tion with State or Territorial officers 7 percent (see § 1.804-1). The reserves deductions provided in section 803 (S' Thursday, January 19, 1956 FEDERAI REGISTER 391 for wholly tax-exempt interest, invest deduction shall be allowed, however, for or an earlier call date. The earlier call ment expenses, real estate expenses, de taxes, expenses, and depreciation upon date of any such security may be the preciation, and the special deductions or with respect to any real estate owned earliest call date specified therein as a provided in part V in of subchapter B by the company except to the extent used day certain, the earliest interest pay (except section 248). In addition to the for the purpose of producing investment ment date if it is callable or payable at limitations on deductions relating to real income. See paragraph (c) of this sec such date, the earliest date at which it estate owned and occupied by a life in tion. As to real estate owned and occu is callable at par, or such other call or surance company provided in section 803 pied by the company, see § 1.803-5. payment date, prior to maturity, specified (h) , the limitations on the adjustment (e) Depreciation. The deduction alin the security as may be selected by the for amortization of premium and ac lowed for depreciation is, except as pro life insurance company. A life insurance crual of discount provided in section 803 vided in section 803 (h) , identical with company which adjusts amortization of (i) , and the limitation on the deduction that allowed other corporations by sec premium or accrual of discount with for investment expenses where general tion 167. The amount allowed by sec reference to a particular call or pay expenses are allocated to investment in tion 167 in the case of life insurance ment date must make the adjustments come provided in section 803 (g) (2), life companies is limited to depreciation sus with reference to the value on such date insurance companies are subject to the tained on the property used, and to the and may not, after selecting such date, limitations on deductions relating to extent used, for the purpose of producing use a different call or payment date, or wholly tax-exempt income provided in the income specified in section 803 (a) value, in the calculation of such amorti section 265. Life insurance companies (2). zation or discount with respect to such are not entitled to the net operating loss § 1.803-5 Real estate owned and oc security unless the security was not in deduction provided in section 172. cupied. The amount allowable as a fact called or paid on such selected date. (b) Wholly tax-exempt interest. In deduction for taxes, expenses, and de (c) The adjustments for amortization terest which in the case of other tax preciation upon or with respect to any of premium and accrual of discount will payers is excluded from gross income by real estate owned and occupied in whole be determined— section 103 but included in the gross in or in part by a life insurance company (1) According to the method regularly come of a life insurance company by is limited to an amount which bears the employed by the company, if such section 803 (a) (2) is allowed as a deduc same ratio to such deduction (computed method is reasonable, or tion from gross income by section 803 without regard to this limitation) as the (2) According to the method pre (g) (1). rental value of the space not so occupied scribed by this section. (c) Investment expenses. (1) As used bears to the rental value of the entire A method of amortization of premium or in the Internal Revenue Code, the term property. For example, if the rental accrual of discount will be deemed “reg “general expenses” means any expense value of the space not occupied by the ularly employed” by a life insurance paid or incurred for the benefit of more company is equal to one-half of the company if the method was consistently than one department of the company rental value of the entire property, the followed in prior taxable years, or if, in rather than for the benefit of a particu deduction for taxes, expenses, and de the case of a company which has never lar department thereof. Any assignment preciation is one-half of the taxes, ex before made such adjustments, the com of such expense to the investment de penses, and depreciation on account of pany initiates in the first taxable year partment of the company for which a the entire property. Where a deduction for which the adjustments are made a deduction is claimed under section 803 is claimed as provided in this section, reasonable method of amortization of (g) (2) subjects the entire deduction for the parts of the property occupied and premium or accrual of discount and con investment expenses to the limitation the parts not occupied by the company, sistently follows such method thereafter. provided in that section. The account-? together with the respective rental val Ordinarily, a company regularly employs ing procedure employed is not conclu ues thereof, must be shown in a state a method in accordance with the statute sive as to whether any assignment has in ment accompanying the return. fact been made. Investment expenses of some State, Territory, or the District do not include Federal income and ex § 1.803-6 Amortization of premium of Columbia, in which it operates. cess profits taxes. and accrual of discount, (a) Section (d) The method of amortization and (2) if no general expenses are as 803 (i) provides for certain adjust accrual prescribed by this section is as signed to or included in investment ex ments on account of amortization of pre follows: penses the deduction may consist of in mium and accrual of discount on bonds, (1) The premium (or discount) shall vestment expenses paid or incurred notes, debentures, or other evidences of be determined in accordance with this during the taxable year in which case indebtedness held by a life insurance section; and an itemized schedule of such expenses company. Such adjustments are limited (2) The appropriate amortization of must be appended to the return. to the amount of appropriate amortiza premium (or accrual of discount) at (3) Invested assets for the purpose of tion or accrual attributable to the taxa tributable to the taxable year shall be an section 803 (g) (2) and this section are ble year with respect to such securities amount which bears the same ratio to those which are owned and used, and to which are not in default as to principal the premium (or discount) as the num the extent used, for the purpose of pro or interest and which are amply secured. ber of months in the taxable year during ducing the income specified in section The question of ample security will be which the security was owned by the life 803 (a) (2) . They do not include real resolved according to the rules laid down insurance company bears to the number estate owned and occupied, and to the from time to time by the National As of months between the date of acquisi extent owned and occupied, by the com sociation of Insurance Commissioners. tion of the security and its maturity or pany. if general expenses are assigned The adjustment for amortization of pre earlier caH date, determined in accord to or included in investment expenses, mium decreases, and for accrual of dis ance with this section. For the purpose the maximum allowance will not be count increases, (1) the gross income, of this section, a fractional part of a granted unless it is shown to the satis (2) the deduction for wholly tax-exempt month shall be disregarded unless it faction of the district director that such interest, and (3) the deduction for par amounts to more than half a month, in allowance is justified by a reasonable tially tax-exempt interest. which case it shall be considered as a assignment 0f actual expenses. (b) The premium for any such secu month. (d) Taxes and expenses with respect rity is the excess of its acquisition value § 1.804 Statutory provisions; life in ° rea* estate. The deduction for taxes over its maturity value and the discount surance companies; reserve and other and expenses under section 803 (g) (3) is the excess of its maturity value over includes taxes and expenses paid or its acquisition value. The acquisition policy liability deduction. « 2 * during the taxable year exclu- value of any such security is its cost (in Sec. 804. Reserve and other policy liability Z®ly uP°n or with respect to real estate cluding buying commissions or brokerage deduction—(a) In general. For purposes of wned by the company and any sum this subpart, the term “reserve and other but excluding any amounts paid for ac policy liability deduction” means an amount Presenting taxes imposed upon a crued interest) if purchased for cash, or computed by multiplying the taxable income tJr * °1(*er °f the company upon his in- if not purchased for cash, then its fair by a figure, to be determined and proclaimed a est as shareholder which is paid or market value. The maturity value of by the Secretary or his delegate for each tax ky the company without reim- any such security is the amount payable able year. This figure shall be based on such nrsement from the shareholder. No thereunder either at the maturity date data with respect to life insurance companies 392 PROPOSED RULE MAKING for the preceding taxable year as the Secre the surtax would be the same as in the section 805 (b) (See § 1.805-2). The re tary or his delegate considers representative above example. Its taxable income for pur serve and other policy liability deduction and shall be computed in accordance with the poses of the normal tax, however, would be is not allowed for purposes of the com following formula: The ratio which a numer $3,000,000 ($4,000,000 less $200,000 less $700,- ator comprised of the aggregate of the sums 000 less $100,000), its deduction would be putation of 1954 life insurance company of— $2,790,000 ($3,000,000X0.93) and its taxable taxable income. (1) 2 percent of the reserves for deferred income for purposes of the normal tax would (b) The tax imposed upon the 1954 dividends, be $210,000 ($3,000,000-$2,790,000). life insurance company taxable income (2) Interest paid, and by section 802 (b) is in lieu of~the tax (3) The product of— § 1.805 Statutory provisions; life in otherwise imposed on life insurance (A) The mean of the adjusted reserves at surance companies; life insurance com company taxable income by section the beginning and end of the taxable year and pany taxable income. 802 (a). (B) The reserve earnings rate, Sec. 805. 1954 life insurance company tax bears to a denominator comprised of the ag able income—(a) Definition. For purposes § 1.805-2 Reserve interest credit, (a) gregate of the excess of taxable incomes of section 802 (b), the term “1954 life insur In computing 1954 life insurance com (computed without any deduction for tax- ance company taxable income” means the pany taxable income, a reserve interest free interest, partially tax-exempt interest, or taxable income (as defined in section 803 credit is allowed where the “adjusted dividends received) over the adjustment for (g)) > plus 8 times the amount of the adjust taxable income” of the company is less certain reserves provided in section 806. ment for certain reserves provided in section than 105 percent of its required interest. (b) Surtax computation. In determining806, and minus the reserve interest credit, the life insurance company taxable income if any, provided in subsection (b) of this For the purpose of computing the reserve for purposes of the surtax, the taxable income section. interest credit, the term “adjusted tax to be multiplied by the figure determined and (b) Reserve interest credit. For purposes able income” means the taxable income proclaimed under subsection (a) shall be of subsection (a), the reserve interest credit of the company computed without the computed without regard to the deduction shall be an amount determined as follows: deductions provided in section 803 (g) provided in section 242 for partially tax- (1) Divide the amount of the adjusted (1) or (5) , less 50 percent of the adjust exempt interest. taxable income (as defined in subsection (c)) by the amount of the required interest (as ment for certain reserves on contracts § 1.804-1 Reserve and other policy defined in subsection (d)). other than life insurance or annuity con liability deduction for life insurance com (2) If the quotient obtained in paragraph tracts provided in section 806. pany taxable income, (a) Life insur (1) is 1.05 or more, the reserve interest credit (b) The required interest for which a ance companies in computing life insur shall be zero. credit may be allowed consists of the ance company taxable income for pur (3) If the quotient obtained in paragraph (1) is 1.00 or less, the reserve interest credit total of— poses of the normal tax and surtax are shall be an amount equal to 50 percent of the (1) The sum of amounts obtained by allowed a “reserve and other policy liabil taxable Income. multiplying each rate of interest assumed ity deduction” in lieu of a deduction for (4) If the quotient obtained in paragraph in computing life insurance reserves (see the interest allowed on their reserves, for (1) is more than 1.00 but less than 1.05, the section 803 (b) and § 1.803-1) by the interest paid and for deferred dividends. reserve interest credit shall be the amount means of the amounts of the adjusted This deduction is a flat percentage of obtained by multiplying the taxable Income reserves, as defined in section 803 (c), by 10 times the difference between the figures taxable income. The figure is the same 1.05 and such quotient.. computed at that rate at the beginning for all companies and is determined on (c) Adjusted taxable income. " For pur and the end of the taxable year; the basis of the aggregate of the interest poses of subsection (b) (l), the term “ad (2) Two percent of the reserve for allowed on reserves, interest paid, and justed taxable income” means the taxable deferred dividends; and 2 percent of the reserves held for deferred income (computed without the deductions (3) Interest paid or accrued. dividends,, as provided in section 804 (a), provided in section 803 (g) (1) or (5)) minus (c) To determine the amount of the for all companies. The figure for each 50 percent of the amount of the adjustment reserve interest credit, it is necessary to for certain reserves provided in section 806. taxable year is to be determined and pro (d) Required interest. For purposes of divide the amount of the adjusted tax claimed by the Secretary, based on such subsection (b) (1), the term "required in able income by the amount of the re data with respect to life insurance com terest” means the total of— quired interest. If the adjusted taxable panies for the preceding taxable year as (1) The sum of the amounts obtained by income is 100 percent or less of the re the Secretary considers representative multiplying— quired interest, the reserve interest credit for such year. The taxable income for (A) Each rate of interest assumed in com is an amount equal to 50 percent of the purposes of the surtax shall be computed puting the taxpayer’s life insurance reserves life insurance company taxable income. without regard to the deduction provided by If the adjusted taxable income is 105 (B) The means of the amounts of the tax in section 242 for partially tax-exempt payer’s .adjusted reserves computed at that percent or more of the required interest, interest. rate at the beginning and end of the taxable the reserve interest credit is zero. If the (b) The application of the reserve and year, adjusted taxable income is more than other policy liability deduction for the (2) 2 percent of the reserve for deferred 100 percent and less than 105 percent of purpose of this section may be illustrated dividends, and the required interest, the reserve interest by the following examples: (3) Interest paid. credit is computed by multiplying the Example (1). (i) The X Life Insurance § 1.805-1 Tax on life insurance com life insurance company taxable income Company for the calendar year has gross panies in the case of a taxable year be by ten times the difference between 105 income, consisting of interest and rents, of ginning in 1954. (a) In the case of a percent and the percentage established. $4,000,000, of which $700,000 consists of taxable year beginning in 1954, the tax Thus, if the adjusted taxable income of wholly tax-exempt interest. It has invest imposed on a life insurance company for a life insurance company for the calen ment expenses of $100,000, real estate ex dar year 1954 is $103,000 and the re penses of $80,000, and depreciation of such year shall consist of a tax upon the 1954 life insurance company taxable quired interest for such year is $100,000, $20,000. Its taxable income for purposes of the adjusted taxable income is 103 per the normal tax and surtax accordingly is income equal to 3% percent of the $3,100,000 ($4,000,000 less investment ex amount of such income not in excess of cent of the required interest and the penses, real estate expenses, and depreciation, $200,000, plus 6 Vs percent of the amount reserve interest, accordingly, is the life totaling $200,000, and wholly tax-exempt in of such income in excess of $200,000. insurance company taxable income mul terest of $700,000). The term “1954 life insurance company tiplied by 20 percent (10 times 2 percent, (ii) If the Secretary determines and pro the difference between 105 percent and claims that for the taxable year the figure taxable income” means the taxable based on data for the preceding taxable year income (consisting of income computed 103 percent). is 0.93, the X Life Insurance Company is en as provided in § 1.803-4 less the deduc (d) In determining the percentage of titled to a deduction of $2,883,000 ($3,100,- tion for partially tax-exempt interest al the adjusted taxable income to r e q u i r e d 000X0.93) and its taxable income for pur lowed under section 242 and less the interest for purposes of determining th® poses of both the normal tax and surtax is deduction for dividends received allowed reserve interest credit, the figures shall $217,000 ($3,100,000-$2,883,000). under section 243) for the taxable year Example (2). If in example (1) $100,000 be computed to at least the nearest one- beginning in 1954 plus eight times the tenth of a percentage point. of the $4,000,000 gross income of the X Life amount of the adjustment for certain Insurance Company for the calendar year § 1.806 Statutory provisions; life In consisted of partially tax-exempt interest, in reserves computed as provided in section addition to the $700,000 of wholly tax-exempt 806 (see § 1.806-1), and minus the re surance companies; adjustment for cs>‘ Interest, its taxable income for purposes of serve interest credit, if any, provided in tain reserves. Thursday, January 19, 1956 FEDERAL REGISTER 393 Sec. 806. Adjustment for certain reserves. ness within the United States, if with re cent of the excess of the amount so computed In the case of a life insurance company spect to its United States business it over $75,000, whichever is the lesser. writing contracts other than life insurance (b) Imposition of tax on interinsurers. would qualify as a life insurance com In the case of every mutual insurance com or annuity contracts (either separately or pany under section 801, is taxable on its combined with noncancellable health and pany which is an interinsurer or reciprocal accident insurance), the term “adjustment income received during the taxable year underwriter (other than a life or a marine for certain reserves” means an amount equal from interest, dividends, and rents, from insurance company or a fire insurance com to 3% percent of the unearned premiums sources within and without the United pany subject to the tax imposed by section and unpaid losses on such other contracts States, pertaining to its United States 831), if the mutual insurance company tax which are not included in life insurance business. Such a company is taxable in able income (computed as provided in sub reserves (as defined in section 803 (b). For the same manner as a domestic life in section (a) (1)) is over $50,000, there shall purposes of this section, such unearned be imposed for each taxable year on the surance company except that the deter mutual insurance company taxable income premiums shall not be considered to be less minations necessary for the purposes of than 25 percent of the net premiums written a tax computed as follows: during the taxable year on such other con subtitle A, such as gross income, the ad (1) Normal tax—(A) Taxable years be tracts. n justment for certain reserves, deductions ginning before April 1, 1956. In the case of and limitations on deductions, amortiza taxable years beginning before April 1, 1956, § 1.806-1 Adjustment, for certain re tion of premiums and accrual of dis a normal tax of 30 percent of the mutual serves. (a) A life insurance company count, and the deductions allowed the insurance company taxable income, or 60 writing contracts other than life insur percent of the amount by which such taxable company in part VIII of subchapter B, income exceeds $50,000, whichever is the ance or* annuity contracts (either shall be made on the basis of the income, lesser; separately or combined with noncancel disbursements, assets, and liabilities re (B) Taxable years beginning after March lable health and accident insurance con ported in the annual statement for the 31, 1956. In the case of a taxable year be tracts) must add to its life insurance taxable year of the United States busi ginning after March 31, 1956, a normal tax company taxable income, as an offset to ness of such company on the form ap of 25 percent of the mutual insurance com its reserve and other policy liability proved for life insurance companies by pany taxable income, or 50 percent of the deduction an amount equal to 3% per the National Association of Life Insur amount by which such taxable income ex ceeds $50,000, whichever is the lesser; plus cent of the mean of the unearned pre ance Commissioners. This statement is (2) Surtax. A surtax of 22 percent of the miums and unpaid losses at the begin presumed to reflect the income, disburse mutual insurance company taxable income ning and end of the taxable year on such ments, assets, and liabilities of the (computed as provided in subsection (a) other contracts as are not included in United States business of the company (1)) in excess of $25,000, or 33 percent of life insurance reserves. If such unearned and insofar as it is not inconsistent with the amount by which such taxable income premiums, however, are less than 25 per the provisions of the Internal Revenue exceeds $50,000, whichever is the lesser. cent of the net premiums written during Code will be recognized and used as a (c) Gross amount received, over $75,000 but less than $125,000. If the gross amount the taxable year on such other contracts, basis for that purpose. received during the taxable year from inter then the amount to be added to life in MUTUAL INSURANCE COMPANIES (OTHER est, dividends, rents, and premiums (includ surance company taxable income is 3XU THAN LIFE OR MARINE OR FIRE INSURANCE ing deposits and assessments) is over $75,000 percent of 25 percent of the net pre COMPANIES ISSUING PERPETUAL POLICIES) but less than $125,000, the tax imposed by miums written during the taxable year subsection (a) or subsection (b), whichever on such other contracts plus 3% percent § 1.821 Statutory provisions; tax on applies, shall be reduced to an amount which of the mean of the unpaid losses at the mutual insurance companies (other than bears the same proportion to the amount of life or marine or fire insurance com the tax determined under such subsection beginning and end of the taxable year as the excess over $75,000 of such gross on such other contracts. As used in this panies issuing perpetual policies). amount received bears to $50,000. section, the term “unearned premiums” Sec. 821. Tax on mutual insurance com (d) No United States insurance business. has the same meaning as in section 832 panies (other than life or marine or fire Foreign mutual insurance companies (other (b) (4) and § 1.832-1. insurance companies issuing perpetual poli than a life or marine insurance company or (b) For taxable years beginning in cies)—(a) Imposition of tax on mutual com a fire insurance dompany subject to the tax 1954, an amount equal to 8 times the panies other than interinsurers. There shall imposed by section 831) not carrying on an be imposed for each taxable year on the insurance business within the United States amount of the applicable adjustment income of every mutual insurance company shall not be subject to this part but shall be provided in paragraph (a) of this sec (other than a life or a marine insurance taxable as other foreign corporations. tion, must be added to life insurance company or a fire insurance company subject (e) Alternative tax on capital gains. For company taxable income for such year to the tax imposed by section 831 and other alternative tax in case of capital gains, see as a factor in determining 1954 adjusted than an interinsurer or reciprocal under section 1201 (a). taxable income. writer) a tax computed under paragraph (1) or paragraph (2), whichever is the greater: [Sec. 821 as amended by sec. 2, Tax Rate § 1.807 Statutory provisions; life in (1) If the mutual insurance company Extension Act 1955]- surance companies; foreign life insur taxable income (computed without regard § 1.821-1 Tax cm mutual insurance ance companies. to the deduction provided in section 242 for partially tax-exempt interest) is over $3,000, companies other than life or marine or Sec. 807. Foreign life insurance com a tax computed as follows: fire insurance companies subject to the panies (a) Carrying on United States insur (A) Normal tax—(i) Taxable years be tax imposed by section 831— (a) In gen ance business. A foreign life insurance com ginning before April 1, 1956. In the case of eral. (1) All mutual insurance com pany carrying on a life insurance business taxable years beginning before April 1, 1956, panies, including foreign insurance within the United States, if with respect to a normal tax of 30 percent of the mutual its United States business it would qualify companies carrying on an insurance insurance company taxable income, or 60 business within the United States, not jj® a hfe insurance company under section percent of thé amount by which such tax °Cli shall be taxable in the same manner as a able income exceeds $3,000, whichever Is the taxable under section 801 or 831 and not domestic life insurance company; except that lesser; specifically exempt under the provisions determin&ti°ns necessary for purposes (ii) Taxable years beginning after March of section 501 (c) (15), are subject to or this subtitle shall be made on the basis 31, 1956. In the case of taxable. years be the tax imposed by section 821 on their n Kn ® lncome> disbursements, assets, and ginning after March 31, 1956, a normal tax investment income or on their gross in labilities reported in the annual statement of 25 percent of the mutual insurance com i°r the taxable year of the United States come, whichever tax is the greater, ex pany taxable income, or 50 percent of the cept interinsurers and reciprocal under usiness of such company on the form ap amount by which such taxable income ex proved for life insurance companies by the ceeds $3,000, whichever is the lesser; plus writers which are taxed only on their ational Association of Insurance Commis (B) Surtax. A surtax of 22 percent of the investment income. For the alternative sioners. mutual insurance company taxable income tax, in lieu of the tax imposed by section (b) No United States insurance business. (computed without regard to the deduction 821 (a> or (b), where the net long-term ine- insurance companies not carry- provided in section 242 for partially tax- capital gain for any taxable year exceeds on an insurance business within the exempt interest) in excess of $25,000. the net short-term capital loss, see sec thinCt^ ®^ates shall not be taxable under (2) If for the taxable year the gross tion 1201 (a) and the regulations there section but shall be taxable as other amount of income from interest, dividends, I0reign corporations. > rents, and net premiums, minus dividends under. to policyholders, minus the interest which (2) The taxable income of mutual in § 1.807-1 Foreign life insurance com- under section 103 is excluded from gross in surance companies subject to the tax im fliMes. a foreign life insurance com- come, exceeds $75,000, a tax equal to 1 per posed by section 821 differs from the P hy carrying on a life insurance busi cent of the amount so computed, or 2 per taxable income of other corporations. No. 12----- 6 394 PROPOSED RULE MAKING See section 821 (a) (2) and section 822. premiums, minus dividends to policy $75,000 ($150,000-$75,000), or $1,500. Since Such companies are entitled, in comput holders and minus wholly tax-exempt the tax under section 821 (a) (2) exceeds the tax under section 821 (a) (1), the tax ing mutual insurance company taxable interest. Tinder section 821 is $1,500, namely, that income, to the deductions provided in (3) Under section 821 (a) (1) (A) imposed by section 821 (a) (2). part VIII of subchapter B (except sec companies with mutual insurance com Example (2). If in the above example tion 248). The gross amount of income pany taxable income for purposes of the the income for purposes of the normal tax during the taxable year from interest, normal tax of over $3,000 and not over were not over $3,000, the income for pur the deduction under section-822 (c) (1) $6,000 pay a normal tax, at a specified poses of the surtax were not over $25,000, for wholly tax-exempt interest, and the rate, on that portion of such income in the gross amount received from interest, excess of $3,000. The rates applicable dividends, rents, and premiums (including deduction under section 242 for partially deposits and assessments) were $90,000, and tax-exempt interest, are decreased by in computing the normal tax of such the gross amount of income from interest, the appropriate amortization of pre companies are as follows: dividends, rents, and net premiums, minus mium and increased by the appropriate Percent dividends to policyholders and wholly tax- accrual of discount attributable to the (i) For taxable years beginning before exempt interest, were $70,000, the W Com taxable year on bonds, notes, debentures April 1, 1956______60 pany would be required to file an income (ii) For taxable years beginning after tax return but due to section 821 (a) no or other evidences of indebtedness held March 31, 1956______50 by a mutual insurance company subject income tax would be imposed. Under section 821. (a) (2) companies Example (3). The X Company, a mutual to the tax imposed by section 821. See casualty insurance company, for the cal section 822 (d) (2) and § 1.822-3. • with gross amounts of income from in endar year 1954 has mutual insurance com (3) All provisions of the Internal Rev terest, dividends, rents, and net premi pany taxable income for surtax purposes enue Code and of the regulations in this ums, minus dividends to policyholders of $28,000 and, due to partially tax-exempt part not inconsistent with the specific and minus wholly tax-exempt interest, interest of $5,000, has income for normal provisions of section 821 are applicable of over $75,000 and not over $150,000 pay tax purposes of $23,000. The gross amount to the assessment and collection of the a tax equal to 2 percent of that portion of income of the X Company from interest, in excess of $75,000. dividends, rents, and net premiums, minus tax imposed by section 821 (a) or (b) dividends to policyholders and wholly tax- and mutual insurance companies subject (4) Under section 821 (b) (1) interexempt interest, is $1,200,000. Under sec to the tax imposed by section 821 are insurers and reciprocal underwriters tion 821 (a) (1) its normal tax for the cal subject to the same penalties as are pro with mutual insurance company taxable endar year 1954 is 30 percent of $23,000, or vided in the case of returns and payment income for purposes of the normal tax of $6,900, and the surtax is 22 percent of $3,000 of income tax by other corporations. over $50,000 and not over $100,000 pay a ($28,000—$25,000),' or $660. The combined The return shall be on Form 1120M. normal tax computed on that portion of tax under section 821 (a) (1) is $7,560 (4) Foreign mutual insurance com such income in excess of $50,000 at the ($6,900 plus $660). The tax under section following rates: 821 (a) (2) is 1 percent of $1,200,000, or panies not carrying on an insurance $12,000. Since the tax under section 821 business within the United States are Percent (i) For taxable years beginning before (a) (2) exceeds the tax under section 821 not taxable under section 821 (a) or (b), April 1, 1956_:______— 60 (a) (1), the tax under section 821 (a) is but are taxable as other foreign corpora (ii) For taxable years beginning after $12,000, namely, that imposed by section tions. See section 881. March 31, 1956______50 821 (a) (2). (5) Mutual insurance companies sub Example (4). The Y Company, a mutual ject to tlje tax imposed by section 821, Under section 821 (b) (2) interinsurers fire insurance company subject to the tax except interinsurers or reciprocal under and reciprocal underwriters with mutual imposed by section 821 for the calendar year insurance company taxable income for 1954, has mutual insurance company taxable writers, with mutual insurance company income for purposes of the surtax of $35,000 taxable income (computed without re purposes of the surtax of over $50,000 and, due to partially tax-exempt interest of gard to the deduction provided in section and not over $100,000 pay a surtax, at $5,000, has income for purposes of the normal 242 for partially tax-exempt interest) of the rate of 33 percent, on that portion tax of $30,000. The gross amount received over $3,000 or with gross amounts of of such income in excess of $50,000. from interest, dividends, rents and premiums income from interest, dividends, rents, (5) Section 821 (c) provides for an(including deposits and assessments) is and net premiums (minus dividends to adjustment of the amount computed $120,000, and the gross amount of income under section 821 (a) (1), section 821 from interest, dividends, rents, and net pre policyholders and wholly tax-exempt in miums, minus dividends to policyholders and terest) in excess of $75,000, are subject (a) (2), and section 821 (b) where the wholly tax-exempt interest, is $100,000. Un to a tax computed under section 821 (a) gross amount received during the taxable der section 821 (a) (1), without application (1) or section 821 (a) (2) whichever is year from interest, dividends, rents, and of section 821 (c), the normal tax would be the greater. Interinsurers and recipro premiums (including deposits and assess 30 percent of $30,000, or $9,000, since this is cal underwriters with mutual insurance ments) is over $75,000 and less than less than $16,200, 60 percent of $27,000 (ex company taxable income (computed $125,000. The adjustment reduces the cess of $30,000 over $3,000); and the surtax tax otherwise computed under those would be 22 percent of $10,000 (excess of without regard to the deduction pro $35,000 over $25,000), or $2,200. The com vided in section 242 for partially tax- sections to an amount which bears the bined tax of $11,200 ($9,000 plus $2,200) exempt interest) of over $50,000 are sub same proportion to such tax as the excess would then be reduced by applying section ject to a tax computed under section over $75,000 bears to $50,000. 821 (c), since the gross receipts are between 821 (b). (c) Application. The application of $75,000 and $125,000. The tax under section (b) Rates of tax. (1) The normal tax sections 821 (a) to (c) inclusive, may be 821 (a) (1), as thus adjusted, would be 90 illustrated by the following examples: percent of $11,200, or $10,080, since $45,000 under section 821 (a) (1) (A) and 821 (excess of $120,000 over $75,000) is 90 percent (b) (1), except as hereinafter indicated, Example (1). The W Company, a mutual of $50,000. Under section 821 (a) (2), with is computed upon mutual insurance com casualty insurance company, for the calendar out reference to section 821 (c), the tax is pany taxable income for purposes of the year 1954, has mutual insurance company 2 percent of $25,000 (excess of $100,000 over normal tax at the following rates: taxable Income for purposes of the surtax of $75,000), or $500, since this is less than $1,000, $5,500 and, due to partially tax-exempt in 1 percent of $100,000. Applying section 821 Percent terest of $800, has income for purposes of (c) reduces this to $450, or 90 percent of (i) For taxable years beginning before the normal tax of $4,700. The gross amount $500. Since $10,080, the tax under section April 1, 1956______30 of income of the W Company from interest, 821 (a) (1), as adjusted, exceeds $450, the (ii) For taxable years beginning after dividends, rents and net premiums, minus tax under section 821 (a) (2), as adjusted, March 31, 1956______25 dividends to policyholders and wholly tax- the tax under section 821 (a) (1), as ad exempt interest, is $150,000. Its normal tax justed, is applicable. The Y Company would (2)«The surtax under section 821 (a) urider section 821 (a) (1) for the calendar accordingly pay a combined normal tax and (1) (B) and 821 (b) (2), except as here year 1954 is 60 percent of $1,700 ($4,700 minus surtax of $10,080. inafter indicated, is computed on that $3,000) or $1,020, since its income subject to Example (5). The Z Exchange, an inter? portion of the mutual insurance company normal tax is not over $6,000. It is not insurer, for the calendar year 1954 has mu taxable income for purposes of the sur liable for surtax for the calendar year 1954 tual Insurance company taxable income fo tax in excess of $25,000 at the rate of 22 as its mutual insurance company taxable purposes of the surtax of $60,000 and, duet percent. The tax under section 821 (a) income for purposes of the surtax does not partially tax-exempt interest of $12,000, has exceed $25,000. It has no surtax and, there income for purposes of the normal tax o (2) , except as hereinafter indicated, is fore, its total tax under section 821 (a) (1) $48,000. The gross amount received from 1 percent of the gross amount of income (A) is the normal tax of $1,020. The tax interest, dividends, rents, and premiums (m* from interest* dividends, rents, and net under section 821 (a) (2) is 2 percent of eluding deposits and assessments) is $2,700,* Thursday, January 19, 1956 FEDERAL REGISTER 395 000. The Z Exchange is not liable for normal to provide for the payment of dividends and ter N (sec. 881 and following) in the case of tax under section 821 (b) (1) for the calen similar distributions to policyholders. Cap a foreign corporation engaged in trade or dar year 1954 as its mutual insurance com ital assets shall be considered as sold or ex business within the United States. pany taxable income for purposes of the changed in order to obtain funds to meet normal tax does not exceed $50,000. Its sur abnormal insurance losses and to provide § 1.822-1 Taxable income and deduc tax is 33 percent of $10,000 ($60,000 minus for the payment of dividends and similar tions— (a) In general. The taxable in $50,000), or $3,300, since that amount is less distributions to policyholders to the extent come of a mutual insurance company than $7,700, 22 percent of $35,000 (excess of that the gross receipts from their sale or ex subject to the tax imposed by section 821 $60,000 over $25,000). Since the Z Exchange change are not greater than the excess, if is its gross investment income, namely, has no normal tax, is not subject to the tax any, for the taxable year of the sum of divi the gross amount of income during the imposed by section 821 (a) (2), and is not dends and similar distributions paid to pol taxable year, from interest, dividends, entitled to the adjustment provided in sec icyholders, losses paid, and expenses paid rents, and gains from sales or exchanges tion 821 (c), its total tax under section 821 over the sum of interest, dividends, rents, of capital assets, less the deductions pro (a) is $3,300. and net premiums received. In the applica tion of section 1211 for purposes of this sec vided in section 822 (c) for wholly tax- § 1.822 Statutory provisions; deter tion, the net capital loss for the taxable year exempt interest, investment expenses, mination of mutual insurance company shall be the amount by which losses for such real estate expenses, depreciation, inter taxable income. year from sales or exchanges of capital as est paid or accrued, capital losses to the sets exceeds the sum of the gains from such Sec. 822. Determination of mutual insur extent provided in subchapter P (sec. ance company taxable income—(a) Defini sales or exchanges and whichever of the fol 1201 and following), and the special de tion. For purposes of section 821, the term lowing amounts is the lesser; ductions provided in part VIII of sub “mutual insurance company taxable income’' (A) The mutual insurance company tax chapter B (except section 248). In means the gross investment income minus able income (computed without regard to gains or losses from sales or exchanges of addition to the limitations on deductions the deductions provided in subsection (C). relating to real estate owned and occu (b) Gross investment income. For pur capital assets or to the deduction provided poses of subsection (a), the term “gross in in section 242 for partially tax-exempt in pied by a mutual insurance company vestment income” means the gross amount terest) ; or subject to the tax imposed by section 821 of income during the taxable year from inter (B) Losses from the sale or exchange of provided in section 822 (d) (1), the ad est, dividends, rents, and gains from sales capital assets sold or exchanged to obtain justment for amortization of premium or exchanges of capital assets to the extent funds to meet abnormal insurance losses and accrual of discount provided in sec provided in subchapter P (sec. i201 and fol and to provide for the payment of dividends and similar distributions to policyholders. tion 822 (d) (2), and the limitation on lowing, relating to capital gains and losses). the deduction for investment expenses (c) Deductions. In computing mutual in (7) Special deductions. The special de surance company taxable income, the follow ductions allowed by part VIII (except sec where general expenses are allocated to ing deductions shall be allowed: tion 248) bf subchapter B (sec. 241 and fol investment income provided in section (1) Tax-free interest. The amount of in lowing, relating to partially tax-exempt in 822 (c) (2), mutual insurance companies terest which under section 103 is excluded terest and to dividends received). subject to the tax imposed by section 821 for the taxable year from gross income. (d) Other applicable rules—(1) Rentalare subject to the limitation on deduc (2) Investment expenses. Investment ex value of real estate. The deduction under subsection (e) (3) or (4) on account of any tions relating to wholly tax-exempt in penses paid or accrued during the taxable come provided in section 265. Such year. If any general expenses are in part real estate owned and occupied in whole or assigned to or included in the investment ex in part by a mutual insurance company sub companies are not entitled to the net penses, the total deduction under this para ject to the tax imposed by section 821 shall operating loss deduction provided in sec graph shall not exceed one-fourth of 1 per be limited to an amount which bears the tion 172. cent of the mean of the book value of the same ratio to such deductions (computed (b) Wholly tax-exempt interest. In invested assets held at the beginning and without regard to this paragraph) as the terest which in the case of other taxpay end of the taxable year plus one-fourth of rental value of the space not so occupied ers is excluded from gross income by the amount by which mutual insurance com bears to the rental value of the entire section 103 but included in the gross in pany taxable income (computed without any property. deduction for investment expenses allowed (2) Amortization of premium and accrual vestment income by section 822 (b) is by this paragraph, for tax-free interest al of discount. The gross amount of income allowed as a deduction from gross invest lowed by paragraph (1), or for partially tax- during the taxable year from interest, the ment income by section 822 (c) (1). exempt interest and dividends received deduction provided in subsection (c) (1), (c) Investment expenses. The deduc allowed by paragraph (7)), exceeds 3 % per and the deduction allowed by section 242 (re tion allowed by section 822 (c) (2) for cent of the book value of the mean of the lating to partially tax-exempt interest) shall investment expenses is the same as that invested assets held at the beginning and each be decreased to reflect the appropriate allowed life insurance companies by sec-, end of the taxable year. amortization of premium and increased to (3) Real estate expenses. Taxes and other reflect the appropriate accrual of discount tion 803 (g) (2) . See § 1.803-4 (c). expenses paid or accrued during the taxable attributable to the taxable year on bonds, (d) Taxes and expenses with respect year exclusively on or with respect to the real notes, debentures, or other evidences of in to real estate. The deduction allowed estate owned by the company, not including debtedness held by a mutual insurance com by section 822 (c) (3) for taxes and ex taxes assessed against local benefits of a kind pany subject to the tax imposed by section penses with respect to real estate owned tending to increase the value of the property 821. Such amortization and accrual shall be by the company is the same as that al assessed, and not including any amount paid determined— lowed life insurance companies by sec out for new buildings, or for permanent im (A) In accordance with the method regu tion 803 (g) (3). See § 1.803-4 (d). provements or betterments made to increase larly employed by such company, if such the value of any property. The deduction method is reasonable, and (e) Depreciation. The deduction al allowed by this paragraph shall be allowed (B) In all other cases, in accordance with lowed by section 822 (c) (4) for depre ih the case of taxes imposed on a shareholder regulations prescribed by the Secretary or his ciation is the same as that allowed life of a company on his interest as shareholder, delegate. insurance companies by section 803 (g), which are paid or accrued by the company (3) Double deductions. Nothing in this (4). See § 1.803-4 (e). without reimbursement from the share part shall permit the same item to be de (f) Interest paid or accrued. The de holder, but in such cases no deduction shall ducted more than once. duction allowed by section 822 (c) (5) be allowed the shareholder for the amount of (e) Foreign mutual insurance companies such taxes. Other than life or marine. In the case of a for interest on indebtedness is the same (4) Depreciation. The depreciation deduc foreign mutual insurance company (other as that allowed other corporations by tion allowed by section 167. than a life or marine insurance company or section‘163. See § 1.163-1. (5) Interest paid or accrued. All interest a fire insurance company subject to the tax (g) Capital losses. (1) The deduction or accrued within the taxable year on imposed by section 831), the mutual insur for capital losses under section 822 (c) ndebtedness, except on indebtedness in- ance company taxable income shall be the (6) includes not only capital losses to urred or continued to purchase or carry obli taxable income from sources within the thé extent provided in subchapter P but gations (other than obligations of the United United States (computed without regard to in addition thereto losses from capital otates issued after September 24, 1917, and the deductions allowed by subsection (c) nginally subscribed for by the taxpayer) (7)), and the gross amount of income from assets sold or exchanged to provide funds e interest on which is wholly exempt from the interest, dividends, rents, and net pre to meet abnormal insurance losses and taxation under this subtitle. miums shall be the amount of such incomp to provide for the payment of dividends (6) Capital losses. ./Capital losses to the from sources within the United States. In and similar distributions to policy an/f11*' Provided in siibchapter P (sec. 1201 the case of a company to which the preceding apt *oll0wing) plus losses from capital as- sentence applies, the deductions allowed in holders. Losses in the latter case may j s sold or exchanged in order to obtain this section shall be allowed to the extent be deducted from ordinary income while hds to meet abnormal insurance losses and provided in subpart B of part II of subchap- the deduction for losses under subchap-* 393 PROPOSED RULE MAKING ter P is limited to the gains. See section abnormal insurance losses and to provide for are also used in section 822 (c) (6) in 1211. the payment of dividends and similar dis determining the limitation on certain tributions to policyholders of $20,000. Such capital losses and in the application of (2) Capital assets are considered as losses of $20,000 are added to capital gains sold or exchanged to provide for the of $10,000, since they are less than taxable section 1212. The term “net premiums” funds or payments specified in section income for purposes of the surtax, computed is defined in section 823 (1) and includes 822 (c) (6) , to the extent that the gross without regard to gains or losses from sales deposits and assessments, but excludes receipts from the sale or exchange of or exchanges of capital assets, of $29,750 amounts returned to policyholders which such assets are not greater than the ex ($9,750 taxable income for purposes of the are treated as dividends under section cess, if any, for the taxable year of the surtax plus $20,000 other capital losses under 823 (2). sum of dividends and similar distribu section 822 (c) (6) plus the portion of capital losses allowable under subchapter P § 1.823-2 Dividends to policyholders. tions paid to policyholders, and losses of $10,000 minus capital gains under sub (a) Dividends to policyholders is one of and expense paid over the sum of inter chapter P of $10,000). the deductions used, together with wholly est, dividends, rents, and net premiums (h) Special deductions. Section 822tax-exempt interest, in determining tax received. If, by reason of a particular liability under section 821 (a) (2). They sale or exchange of a capital asset, gross (c) (7) allows a mutual insurance com pany the special deductions provided by are also used in,section 822 (c) (6) in receipts are greater than such excess, the determining the limitation on certain gross receipts and the resulting loss part VIII (except section 248) of sub chapter B (sec. 241 and following, relat capital losses and in the application of should be apportioned and the excess in section 1212. The term “dividends to cluded in capital losses subject to the ing to partially tax-exempt interest and policyholders” is defined in section 823 provisions of subchapter P. Capital to dividends received). (2) as dividends and similar distribu losses actually used to reduce net income § 1.822-2 Real estate owned and oc tions paid or declared to policyholders. in any taxable year may not again be cupied. The limitation in section 822 (d) It includes amounts returned to policy used in a succeeding taxable year as an (1) on the amount allowable as a deduc holders where the amount is not fixed offset against capital gains in that year tion for taxes, expenses, and deprecia in the insurance contract but depends and for that purpose a special rule is set tion upon or with respect to any real es upon the experience of the company or forth for the application of section 1212. tate owned and occupied in whole or in the discretion of the management. Such (3) The application of section 822 (c) part by a mutual insurance company amounts are not to be treated as return (6) may be illustrated by the following subject to the tax imposed by section 821 premiums under section 823 (1). Similar examples: is the same as that provided in the case distributions include such payments as Example (1). The X Company, a mutual of life insurance companies by section the so-called unabsorbed premium de fire Insurance company subject to the tax 803 (h ). See § 1.803-5. posits returned to policyholders by fac imposed by section 821, in the taxable year tory mutual „ fire insurance'companies. 1954 sells capital assets in order to obtain § 1.822-3 Amortization of premium The term “paid or declared” is to be con funds to meet abnormal insurance losses and and accrual of discount. Section 822 (d) strued according to the method of ac to provide for the payment of dividends and (2) makes provision for the appropriate counting regularly employed in keeping similar distributions to policyholders. The amortization of premium and the appro the books of the insurance company, and gross receipts from the sale are $60,000, re priate accrual of discount, attributable such method shall be consistently fol sulting in losses of $20,000. It pays dividends to the taxable year, on bonds, notes, de lowed with respect to all deductions (in to policyholders of $150,000, It sustains bentures or other evidences of indebted losses of $25,000, and pays expenses of $25,000. cluding dividends and similar distribu It receives interest of $50,000,' dividends of ness held by a mutual insurance com tions to policyholders) and all items of $5,000, rents of $4,000, and net premiums of pany subject to the tax imposed by sec income. $66,000. The excess of the sum of dividends, tion 821. Such amortization and accrual (b) If the method of accounting so losses, and expenses paid ($200,000) over the is the same as that provided for life in employed is the cash receipts and dis- sum of interest, dividends, rents, and net surance companies by section 803 (i) and .bursements method, the deduction is lim premiums received ($125,000) is $75,000. As shall be determined in accordance with ited to the dividends and similar distribu the gross receipts from the sale of capital § 1.803-6, except that in determining the tions actually paid to policyholders in the assets ($60,000) do not exceed such excess premium and discount of a mutual in ($75,000), the losses of $20,000 are allowable taxable year. If, on the other hand, the as a deduction from gross investment income. surance company subject to the tax im method of accounting so employed is the Example (2). If in the above example posed by section 821 the basis provided accrual method, the deduction, or a rea the gross receipts were $76,000 and the last in section 1012 shall be used in lieu of the sonably accurate estimate thereof, for capital asset sold, for the purpose therein acquisition value. dividends and similar distributions de specified, resulted in gross receipts of $2,000 § 1.823 Statutory provisions; other clared to policyholders for any taxable and a loss of $500, the losses allowable as a year will, in general, be computed as fol deduction from gross investment income definitions. would be $19,750. The last sale made the Sec. 823. Other definitions. For purposes lows: gross receipts of $76,000 exceed by $1,000 the of this part To dividends and similar distributions paM excess ($75,000) of the sum of dividends, ii) Net premiums. The term "net pre during tbe taxable year add the amount ox losses, and expenses paid ($200,000) over the miums1’ means gross premiums (including dividends and similar distributions declared stun of Interest, dividends, rents, and net deposits and assessments) written or re but unpaid at the end of the taxable year and premiums received ($125,000). The gross ceived on insurance contracts during the deduct dividends and similar distributions receipts and the resulting loss from the last taxable year less return premiums and pre declared but unpaid at the beginning of tne sale are apportioned on the basis of the ratio miums paid or incurred for reinsurance. taxable year. of the excess of $1,000 to the gross receipts Amounts returned where the amount is not of $2,000, or 50 percent. Fifty percent of fixed in the insurance contract but depends If an insurance company using the ac the loss of $500 is deducted from the total on the experience of the company or the crual method does not compute the de loss of $20,000. The remaining gross receipts discretion of the management shall not be duction for dividends and similar distri of $1,000 and the proportionate loss of $250 included in return premiums but shall be butions declared to policyholders in the should be reported as capital losses under treated as dividends to policyholders under manner stated, it must submit with its subchapter P. paragraph (2). return a full and complete explanation or Example (3). If in example (1) the X (2) Dividends to policyholders. The term the manner in which the deduction is Company had mutual insurance company "dividends to policyholders’’ means dividends computed. For the rule as to when divi taxable income for purposes of the surtax and similar distributions paid or declared of $9,750 and, under the provisions of sub to policyholders. For purposes of the pre dends are considered paid, see the regula chapter P, had capital losses of $18,000 and ceding sentence, the term “paid or declared’’ tions under section 561. capital gains of $10,000, the net capital loss shall be construed according to the method for the taxable year 1954, in applying section regularly employed in keeping the books of OTHER INSURANCE COMPANIES 1212 for the purposes of section 822 (c) (6), the insurance company. § 1.831 Statutory provisions; tax on Would be $8,000. This is determined by sub insurance companies (other than life o tracting from total losses of $38,000 ($18,000 § 1.823-1 Net premiums. Net premi capital losses under subchapter P plus $20,000 ums are one of the items used, together mutual), mutual marine insurance com other capital losses under section 822 (c) (6)) with interest, dividends, and rents, less panies, and mutual fire insurance corn“ the sum of capital gains of $10,000 and losses dividends to policyholders and wholly panies issuing perpetual policies. from the sale or exchange of capital assets tax-exempt interest, in determining tax S e c . 831. Tax on insurance com po^f* sold or exchanged to obtain funds to meet liability under section 821 (a) (2). They {other than life or mutual), mutual ma Thursday, January 19, 1956 FEDERAL REGISTER 397 insurance companies, and mutual fire insur vided in section 11 (b) and the surtax (B) To the result so obtained, add all un ance companies issuing perpetual policies— shall be computed as provided in section paid losses outstanding at the end of the (a) Imposition of tax. Taxes computed as 11 (c). For the circumstances under taxable year and deduct unpaid losses out provided in section 11 shall be imposed for standing at the end of the preceding taxable each taxable year on the taxable income of which the $25,000 exemption from sur year. every insurance company (other than a life tax for certain taxable years may be dis (6) Expenses incurred. The term “ex or mutual insurance company), every mutual allowed in whole or in part, see section penses incurred” means all expenses shown marine insurance company, and every mutual 1551. For alternative tax where the net on the annual statement approved by the fire insurance company exclusively issuing long-term capital gain for any taxable National Convention of Insurance Commis either perpetual policies or policies for which year exceeds the net short-term capital sioners, and shall be computed as follows: the sole premium charged is a single deposit To all expenses paid during the taxable year, which (except for such deduction of under loss, see section 1201 (a) and the regula add expenses unpaid at the end of the tax writing costs as may be provided) is refund tions thereunder. able year and deduct expenses unpaid at the able on cancellation or expiration of the end of the preceding taxable year. For the policy. § 1.832 Statutory provisions; insur purpose of computing the taxable income (b) No United States insurance "business. ance company taxable income. subject to the tax imposed by section 831, Foreign insurance companies (other than a Sec. 832. Insurance company taxable in there shall be deducted from the expenses life or mutual insurance company), foreign come—(a) Definition of taxable income. In Incurred (as defined in this paragraph) all mutual marine insurance companies, and the case of an insurance company subject to expenses incurred which are not allowed as foreign mutual fire insurance companies de the tax imposed by section 831, the term deductions by subsection (c). scribed in subsection (a), not carrying on an “taxable income” means the gross income as (c) Deductions allowed. In computing insurance business within the United States, defined in subsection (b) (1) less the de the taxable income of an insurance company shall not be subject, to this part but shall be ductions allowed by subsection (c). subject to the tax imposed by section 831, taxable as other foreign corporations. (b) Definitions. In the case of an insurthere shall be allowed as deductions: (c) Alternative tax on capital gains. For ance company subject to the tax imposed (1) All ordinary and necessary expenses alternative tax in case of capital gains, see by section 831— Incurred, as provided in section 162 (relating section 1201 (a). (1) Gross income. The term “gross in to trade or business expenses); (2) All interest, as provided in section § 1.831-1 Tax on insurance compa come” means the sum of— (A) The combined gross amount earned 163; nies (other than life or mutual), mutual during the taxable year, from investment ' (3) Taxes, as provided in section 164; marine insurance companies, and mutual income and from underwriting income as (4) Losses incurred, as defined in subsec fire insurance companies issuing perpet provided in this subsection, computed on the tion (b) (5) of this section; ual policies, (a) All insurance compa basis of the underwriting and investment (5) Capital losses to the extent provided nies, other than life or mutual or foreign exhibit of the annual statement approved in subchapter P (sec. 1201 and following, re by the National Convention of Insurance lating to capital gains and losses) plus insurance companies not carrying on an losses from capital assets sold or exchanged insurance business within the United Commissioners. (B) Gain during the taxable year from in order to obtain funds to meet abnormal States, and all mutual marine insurance the sale or other disposition of property, and insurance losses and to provide for the pay companies and mutual fire insurance (C) All other items constituting gross in ment of dividends and similar distributions companies exclusively issuing either per come under subchapter B, except that, in the to policyholders. Capital assets shall be petual policies, or policies for which the case of a mutual fire insurance company de considered as sold or exchanged in order to sole premium charged is a single deposit scribed in section 831 (a), the amount of obtain funds to meet abnormal insurance which, except for such deduction of un single deposit premiums paid to such com losses and to provide for the payment of derwriting costs as may be provided, is pany shall not be included in gross income. dividends and similar distributions to pol (2) Investment income. The term “in icyholders to the extent that tllb gross re refundable upon cancellation or expira vestment income” means the gross amount ceipts from their sale or exchange are not tion of the policy, are subject to the tax of income earned during the taxable year greater than the excess, if any, for the tax imposed by section 831. As used in this from interest, dividends, and rents, computed able year of the sum of dividends and similar section and §§ 1.832-1 and 1.832-2, the as follows: To all interest, dividends, and distributions paid to policyholders in their term “insurance companies” means only rents received during the taxable year, capacity as such, losses paid, and expenses those companies which qualify as insur add interest, dividends, and rents due and paid over the sum of interest, dividends, ance companies under the definition pro accrued at the end of the taxable year, and rents, and net premiums received. In the vided by § 1.801-1 (b) and which are deduct all interest, dividends, and rents due application of section 1211 for purposes of and accrued at the end of the preceding tax this section, the net capital loss for the subject to the tax imposed by section 831. able year. taxable year shall be the amount by which (b) All provisions of the Internal Rev (3) Underwriting income. The term “un losses for such year from sales or exchanges enue Code and of these regulations not derwriting income” means the premiums of capital assets exceeds the sum of the inconsistent with the specific provisions earned on Insurance contracts during the gains from such sales or exchanges and of section 831 are applicable to the as taxable year less losses incurred and expenses whichever of the following amounts is the sessment and collection of the tax im incurred. lesser: posed by section 831 (a), and insurance (4) Premiums earned. The term “pre (A) The taxable income (computed with miums earned on insurance contracts dur out regard to gains or losses from sales or companies are subject to the same penal ing the taxable year” means an amount com exchanges of capital assets or to the deduc ties as are provided in the case of returns puted as follows: tions provided in section 242 for partially and payment of income tax by other (A) From the amount of gross premiums tax-exempt interest); or corporations. written on insurance contracts during the (B) Losses from the sale or exchange of § 1.842 Statutory provisions; com charge, be consolidated or combined in packages are not to be refilled as con putation of gross income. accordance with the provisions of this solidated packages such packages must subpart. Such spirits may be repack be thoroughly rinsed and the rinse water Sec. 842. Computation of gross income. The gross income of insurance companies aged in as many of the same packages or poured on the ground or into the sewer subject to the tax imposed by section 802 other packages of the same kind of or used in reducing the spirits in the or 831 shall not be determined in the man cooperage as may be necessary. tank. Immediately upon being emptied ner provided in part I of subchapter N (re all marks and brands must be obliterated lating to determination of sources of income). § 225.417b Equipment for consolida tion of packages. The proprietor of an from the packages and the packages re [P. R. Doc. 56-434; Piled, Jan. 18, 1956; internal revenue bonded warehouse who moved from the warehouse: Provided. 8:53 a. m.] desires to consolidate spirits must pro That, if any such packages are to be used vide suitable space for the dumping of for containers for consolidated spirits, so the packages containing the spirits to many as are required for that purpose be consolidated, repackaging of such may be retained and the name, location, [ 26 CFR (1954) Part 225 1 spirits, and the gauging of the consoli and registry number of the producing distiller; the designation of the kind of Warehousing of D istilled S pirits dated packages. Tanks of adequate ca pacity, constructed in accordance with cooperage; the proof of distillation; the NOTICE OF PROPOSED RULE MAKING the provisions of § 225.111, shall be pro kind of spirits; and the date of original vided. If bulk gauging tanks or storage filling, if all the spirits mingled were Notice is hereby given, pursuant to the entered for deposit on the same date, Administrative Procedure Act, approved tanks have been provided, such tanks may be utilized in lieu of installing sepa may be left intact thereon. Spirits in June 11, 1946, that the regulations set the consolidation tank shall be thor forth in tentative form below are pro rate consolidation tanks. The facilities to be used must be so arranged and the oughly agitated and adjusted to a whole posed to be prescribed by the Commis degreee of proof by the proprietor: Pro sioner of Internal Revenue, with the ap work so performed that supervision by storekeeper-gaugers can be performed vided, That such adjustment will not be proval of the Secretary of the Treasury. required when the packages are to be Prior to final adoption of such regula readily and expeditiously and unneces sary loss or wastage of spirits or unau regauged prior to taxpayment. Where tions, consideration will be given to any the proof of spirits is not adjusted to a data, views, or arguments pertaining thorized commingling will be prevented. whole degree, the proof shall be deter thereto which are submitted in writing, § 225.417c Application for consolida mined to the nearest tenth but shall be in duplicate, to the Director, Alcohol and tion of spirits. When it is desired to rounded to a whole degree in accordance Tobacco Tax Division, Internal Revenue consolidate spirits contained in pack with Part 186 of this title and so re Service, Washington 25, D. C., within ages, application for such consolidation corded. The storekeeper-gauger shall the period of 30 days from the date of must be made to the storekeeper-gauger then verify the proof, see that all open publication of this notice in the F ed in charge by the proprietor of the ware ings in the tank are locked, determine eral Register. The proposed regula house. The application must be sub (volume or weight) the quantity of spir tions are to. be issued under the author mitted, in triplicate, and shall identify its in the tank and report the details of ity contained in section 7805 of the the serial numbers of the packages, the the gauge on all copies of the application. Internal Revenue Code of 1954 (68A Stat. total tax gallons (original or last official 917; 26 U. S. C. 7805). § 225.417e Filling and gauging consol gauge) for all such packages, kind of idated packages. When the spirits are [seal] P aul K. W ebster, original cooperage, class of materials to be drawn from the tank the store Acting Commissioner from which produced, name of the pro keeper-gauger shall see that all valves of Internal Revenue. ducing distiller, and registry number and location (city or town, and State) of and openings other than the necessary In order to provide for the consoli the distillery, the dates on which it is outlet valves are closed and locked. All dation of packages of spirits distilled at desired to conduct such operations, and spirits drawn into packages will be care 190 degrees of proof or more from the the purpose therefor. Each application fully gauged by the warehouseman, under same class of materials by the same dis shall be given a serial number, beginning the general supervision of the store tiller at the same distillery and stored in keeper-gauger, and the details thereof with “1” for the first day of January of will be entered by the warehouseman on the same kind of cooperage under ap each year and running consecutively proximately the same conditions and Form 1520, in triplicate: Provided, That thereafter to December 31, inclusive. where the warehouseman has indicated which are otherwise homogeneous, 26 In addition, where the warehouseman CFR (1954) Part 225, is hereby amended on his application that the consolidated desires to subsequently taxpay the packages are to be taxpaid on the original as follows: spirits on the original gauge of the con Paragraph 1. Section 225.400 is amend gauge the storekeeper-gauger shall make solidated packages he shall note on all such gauge and report the details thereof ed by changing the semicolon at the end copies of the application, “Taxpay on of paragraph (c) to a comma and adding on Form 1520, noting on Form 1520, original gauge”. Storekeeper-gaugers “Taxpay on original gauge”. There shall the following, “or in consolidated pack in charge will approve the application ages filled in accordance with §§ 225.417a be noted on Form 1520 the date of the only where suitable space and equip original entry for deposit of the oldest to 225.417g ment are available and internal revenue Par. 2. By inserting, immediately After spirits mingled in the tank. The com officers are available for necessary super posite proof determined in the tank shall §225.417, the following new undesig vision. If the storekeeper-gauger ap nated center head and sections: be used for the consolidated packages. proves the application he will return one Weights shall be determined in pounds CONSOLIDATION OF PACKAGES copy marked “Approved” to the pro and one-half pounds. Where the gauge prietor, and retain the remaining two of the packages is performed and re § 225.417a Authorized consolidation. copies. Spirits distilled at 190 degrees of proof ported by the warehouseman the store or more, whether or not such proof is § 225.417d Dumping and guaging. keeper-gauger shall, from time to time, subsequently reduced, from the same Upon removal of the packages, author verify the tares, gross weights, and tax class of materials, by the same distiller ized by the approved application, to that gallonages. Where the storekeeper- at the same distillery, and differing in portion of the warehouse where the gauger finds significant discrepancies in age (a,) not more than 6 months in the spirits are to be consolidated, the store the warehouseman’s report of gauge, or case of spirits miore than 2 years of age, keeper-gauger will examine the pack the marks and brands required to be . ,n°t more than 60 days in the case of ages. Any package bearing evidence of placed on any container, the warehouse spurts more than 1 year and not more unusual loss that cannot be satisfactorily man shall make such corrections as may ??an 2 years of age, or (c) not more than explained, or of tampering, shall be de be required by the storekeeper-gauger. ^ oays in the case of spirits 1 year of tained pending further investigation in Tanks must be completely emptied before «ge or less, and stored in the same kind accordance with the applicable provi the inlets thereto may be unlocked. or cooperage under approximately the sions of §§ 225.480 to 225.495. Packages Where a remnant package results be ame conditions will be presumed to be which do not bear such evidence will be cause of insufficient spirits remaining in homogeneous, and may, with the prior promptly dumped. All packages must be the tank to fill the last package, such PProval of the storekeeper-gauger in thoroughly drained and if any of the package shall be gauged and marked in 400 PROPOSED RULE MAKING the same manner as the other consoli Where distilled spirits with different “brandy-blending department”, the dated packages. Remnant packages may dates of original entry are consolidated, words “or spirits contained in consoli be consolidated in accordance with the the date of the oldest spirits so mingled dated packages”. provisions of § 225.417a. Losses of shall govern the entire lot and such date Par. 7. Section 225.1104 is amended by spirits resulting from the repackaging shall be marked on packages to indicate inserting in the third sentence, which operation shall be reported by the store the date of original entry of the spirits begins “The binders”, immediately after keeper-gauger on the application by in for deposit. the phrase “packages of blended brandy dicating the difference between the total § 225.417g Withdrawal of consolidated filled in the brandy-blending depart quantity dumped in the tank and the spirits. When the proprietor desires to ment,”, the phrase “consolidated pack total quantity repackaged. Upon com withdraw spirits which have been con ages,”. pletion of the gauging of the packages solidated, application therefor will be Par. 8. Section 225.1106 is amended by and the preparation of the gauge forms, prepared in the same manner as for the inserting immediately after the first sen one copy of the approved application and withdrawal of any other spirits, and the tence a new sentence reading, “Copies one copy of the Form 1520 covering the withdrawal will be made in accordance of applications for the consolidation of details of the repackaging will be for with the applicable provisions of this packages will be filed separately in nu warded to the assistant regional com part. The date of consolidation will be merical order.” missioner by the storekeeper-gauger, one noted on Form 1520, or, in the case of P ar. 9. Section 225.1111 is amended by copy of each will be retained by the pro transfer in bond, on Form 1619. inserting, immediately after the second prietor, and one copy of each will be sentence, which begins “All informa placed in the appropriate file in the P ar. 3. Section 225.731 is amended by tion”, the following two new sentences: Government office. striking from the second sentence the “The quantity of distilled spirits con word “Spirits” and inserting in lieu tained in packages dumped for consoli § 225.417f Numbering, marking and thereof the phrase “Except as provided branding of consolidated packages. All dation shall be included as ‘withdrawn’ in §§ 225.417a to 225.417g, spirits”. in Form 1513 and the quantity of spirits consolidated packages shall be serially Par. 4. Section 225.754 is amended by numbered, separately from packages inserting in the first sentence, immedi drawn off from consolidation tanks into filled at the distillery, from storage tanks ately after the phrase “or in packages packages will be included as ‘deposited’. in the bonded warehouse, or from filled from warehouse storage tanks,” the The quantity of spirits lost during re brandy-blending tanks in the bonded phrase “or in consolidated packages,”. packaging will not be shown in the ac warehouse, beginning with the number P ar. 5. Section 225.1102 is amended as count on Form 1513.” “1,” preceded by the letters “CP” (Con follows: Par. 10. Section 225.1140 is amended solidated Package) and the registry (1) By inserting in the first sentence, number and State identifiyng the ware by inserting, immediately after the third immediately after the phrase “Forms sentence, which begins “In the case”, house, as CP-12-Ind.-l, etc. The sym 1520 covering packages filled from bol “CP” together with the registry num the following new sentence: “In the case brandy-blending tanks,”, the phrase of consolidated packages where spirits ber and State shall be considered a part “Forms 1520 covering consolidated of the serial number and must be shown packages/’. with different dates of original entry on all official forms and records. The (2) By inserting at the end of the were mingled the season and year of the consolidated packages shall be marked sixth sentence, which begins “Separate oldest spirits so mingled shall be con and branded in accordance with the ap files”, the words “and for consolidated sidered the season and year of the entire plicable provisions of § 225.409. The date packages”. lot.” of filling of the consolidated packages Par. 6. Section 225.1103 is amended by [F. R. Doc. 56-433; Filed, Jan. 18, 1956; should be abbreviated, as “Con. 7-20-55”, inserting, immediately. after the words 8:52 a. m.] NOTICES DEPARTMENT OF THE TREASURY or synthetic jewels after importation in signed, or prepared to facilitate upjewel- positions occupied by bearings of any ing within the meaning of Treasury De Bureau of Customs other material. cision 53753. [426.843] Pursuant to this provision of the deci The Bureau is tentatively of the opin sion, the Bureau has recently ruled that ion that such movements containing not Certain Self-W inding W atch bushings and metal end caps, as well as more than 17 jewels (including any sub v Movements certain indentations tooled in a specially stitutes for jewels) which, when stem NOTICE OF PROSPECTIVE TARIFF designed bridge and serving as bearings wound, will keep accurate time for at CLASSIFICATION for conical pivots of pinions which rode least 24 hours in their imported condi in jewels on their other ends were sub tion without the utilization of self-wind January 17,1956. stitutes for jewels within the meaning of ing mechanisms, are classifiable as watch In Treasury Decision 53753 of March paragraph 367 (i). movements having not more than 1" 16, 1955, the Bureau held that certain The question has been presented re jewels under paragraph 367 (a) watch movements specially prepared for cently as to the tariff classification of through (5), Tariff Act of 1930, as modi up jeweling contain substitutes for jewels certain self-winding movements and fied. within the meaning of paragraph 367 (i), their status under Treasury Decision The Bureau is also tentatively of the Tariff Act of 1930, in each position cus 53753. opinion that the self-winding devices tomarily occupied by a genuine or syn In view of the fact that paragraph imported in separate shipments would thetic jewel but in which a metal cap, 367 (a) (5), Tariff Act of 1930, as modi be classifiable under paragraph 367 (c). bearing, bushing, or bouchon has been fied, provides specifically for an addi Tariff Act of 1930, as modified, as sub- placed at the time the movements were tional duty of 50 cents on each watch assemblies dutiable at 2 cents for each prepared for exportation to the United movement “if a self-winding device may part and 9 cents per jewel (including any States. be incorporated therein,” the Bureau is substitutes for jewels), but not less than It was pointed out in the Treasury De tentatively of the opinion that the fact 45 per centum ad valorem. cision that the ruling is not limited to that a movement has been engineered for Consideration will be given to any rele movements containing devices of the the later addition or incorporation of a vant data, views, or arguments pertain- kind described therein, but applies to any self-winding device, which could be im ing to the correct tariff classification oi movement which has been specially en ported in a separate shipment, does not, this merchandise which are subnnttea gineered, constructed, designed, or pre standing alone, result in a movement in writing to the Bureau of Customs, pared to facilitate the placing of natural specially engineered, constructed, de Washington 25, D. C., not later than & Thursday, January 19, 195S FEDERAL REGISTER 401 days from the date of publication of this eral R egister. A separate notice will be eral leasing laws. The applicant desires notice. No hearings will be held. sent to each interested party of record. the land for a source of road construc The lands involved in the application tion material. [seal] R alph K elly, For a period of 30 days from the date Commissioner of Customs. are: G i l a a n d S a l t R i v e r M e r i d i a n of publication of this notice, persons hav [F. R. Doc. 56-489; Filed, Jan. 18, 1956; ip 2 5 J2 E ing cause may present their objections 8:57 a. m.] Sec.’’ 22: NW !4 SE % SB 1 4 , Ny2 NE^SW& in writing to the undersigned official of SEV4. the Bureau of Land Management, De partment of the Interior, 233-A Main The area described totals 15 acres in Post Office Building, Phoenix, Arizona. Fiscal Service, Bureau of Accounts the Tonto National Forest. If circumstances warrant it, a public [Dept Circ. 570, Rev. Apr. 20, 1943, 1956 E. R. T ragitt, hearing will be held at a convenient time Supp. 120] State Lands and Minerals and place, which will be announced. P eerless I nsurance Co. Staff Officer. The determination of the Secretary on the application will be published in the CORPORATIONS ACCEPTABLE AS SURETIES ON [F. R. Doc. 56-396; Filed, Jan. 18, 1956; F ederal R egister. A separate notice FEDERAL BONDS 8:45 a. m.] will be sent to each interested party of January 16,1956. record. Effective as of 12:01 a. m. January 1, The lands involved in the application 1956, Peerless Casualty Company, Keene, [Document 90] are: G i l a a n d S a l t R i v e r M e r i d i a n New Hampshire, formally changed its Arizona name to “Peerless Insurance Company.” T. 21 N., R. 8 E., A copy certified by the Secretary of the NOTICE OP PROPOSED WITHDRAWAL AND Sec. 5: SEV4SEV4. State of New Hampshire of an affidavit RESERVATION OP LANDS The area described totals 40 acres in of amendment changing the name of J anuary 12, 1956. the Coconino National Forest. Peerless Casualty Company to Peerless Insurance Company has been received Arizona Highway Department has E. R. T ragitt, and filed in the Treasury. filed an application, Serial No. AR-07747, State Lands and Minerals The change in the name of Peerless for the withdrawal of the lands described Staff Officer. Casualty Company does not affect its below, from all forms of appropriation [F. R. Doc. 56-398; Filed, Jan. 18, 1956; status or liability with respect to any including the Mining and Mineral leas 8:45 a. m.] obligation in favor of the United States ing laws. The applicant desires the land or in which the United States has an in for a source of road construction terest, which it may have undertaken material. Pursuant to its authority under the Act For a period of 30 days from the date [Document 92] of publication of this notice, persons of Congress approved July 30, 1947 (6 A rizona U. S. C. secs. 6-13), to qualify as sole having cause may present their objec surety on such obligations. tions in writing to the undersigned NOTICE OP PROPOSED WITHDRAWAL AND Hereafter the name of the company official of the Bureau of Land Manage RESERVATION OF LANDS will appear as Peerless Insurance Com ment, Department of the Interior, 233-A Main Post Office Building, Phoenix, J anuary 12,1956. pany on Treasury Form No. 356, which Arizona Highway Department has filed sfiows a list of the companies authorized Arizona. If circumstances warrant it, a public an application, Serial No. AR-05274, for act as acceptable sureties on bonds in the withdrawal of the lands described favor of the United States. hearing will be held at a convenient time and place, which will be announced. below, from all forms of appropriation [seal] w . R andolph B urgess, The determination of the Secretary on including the Mining and Mineral leasing Acting Secretary of the Treasury. the application will be published in the laws. The applicant desires the land for Ip- R. Doc. 56-432; Filed, Jan. 18, 1956; F ederal R egister. A separate notice a source of road construction material. 8:52 a. m.] will be sent to each interested party of For a period of 30 days from the date record. of publication of this notice, persons The lands involved in the application having cause may present their objec DEPARTMENT of the interior are: tions in writing to the undersigned offi cial of the Bureau of Land Management, Bureau of Land Management G i l a a n d S a l t R iv e r M e r i d i a n Department of the Interior, 233-A Main T. 18 S., R. 16 E., [Document 89] Post Office Building, Phoenix, Arizona. Sec. 22: SE&NW^SW^, Ey2SW^NW^ If circumstances warrant it, a public SW>/4, E y2N W & S W V4 SW1 4 , NE^SW ^ Arizona SW%. hearing will be held at a convenient time and place, which will be announced. The notice op proposed withdrawal and The area described totals 30 acres in determination of the Secretary on the reservation of lands the Coronado National Forest. application will be published in the F ed eral R egister. A separate notice will be J anuary 12,1956. E. R. T ragitt, Arizona Highway Department has filed sent to each interested party of record. State Land and Minerals The lands involved in the application “R application, Serial No. AR-05909, for Staff Officer. 1 ® ^todrawal of the lands described be- are: diiH- 0m f°rms of appropriation in- [F. R. Doc. 56-397; Mled, Jan. 18, 1956; G i l a a n d S a l t R i v e r M e r i d i a n lawc mining and Mineral leasing 8:45 a. m.] T. 5 NT., R. 30 E., a Tn '^le aP*4icant desires the land for Sec. 3: N ^N E ^N E ^. J?urce °f road construction materials, T. 5 N., R. 31 E., Sec. 21: SW&SEiA. of n?,Kv P^iod 30 days from the date [Document 91] T. 7 N., R. 30 E. . puDiication of this notice, persons hav- Sec. 29: N%NWi4SW*4SE14 (East of High WHGauSf may Present their objections in A rizona way), Burp *° undersigned official of the notice of proposed withdrawal and Sec. 3: NE^NE^NW ii. mp .au °f Land Management, Depart- O«?* of the Interior, 233-A Main Post RESERVATION OF LANDS The area described totals 75 acres in j.ce building, Phoenix, Arizona. J anuary 12, 1956. the Apache National Forest, hpar£lrcu?ns*'ances warrant it, a public Arizona Highway Department has E. R. T ragitt, and ^ held at a convenient time filed an application, Serial No. AR-05283, State Lands and Minerals detPMv^6, will be announced. The for the withdrawal* of the lands de Staff Officer. anniip^latioif of the Secretary on the scribed below, from all forms of appro [F. R. Doc. 56-399; Filed, Jan. 18. 1956; ation will be published in the F ed- priation including the Mining and Min 8:45 a. m.] No. 12------7 402 NOTICES [Docket 93] The area described totals approxi the application will be published in the Arizona mately 20 acres in the Coconino National F ederal R egister. A separate notice will Forest. be sent to each interested party of record. NOTICE OF PROPOSE® WITHDRAWAL AND E. R. T ragitt, The lands involved in the application RESERVATION OF LANDS State Lands and Minerals are: Staff Officer. J anuary 12,1956. G i l a a n d S a l t R i v e r M e r i d i a n Arizona Highway Department has filed [F. R. Doc. 56-401; Filed, Jan. 18, 1956; T. 21 N., R. 1 W., an application, Serial No. AR-05223, for 8:46 a. m.] sec. 10: Ey2sw y4NE^, Ey2wy2swy4NE'/4 the withdrawal of the lands described All north of Hwy., SE % NW % NE14, EV, below, from all forms of appropriation SWiANW^NE^. including the Mining and Mineral leas Sec. 7: N y2 NE>4 SE 14 All south of Hwy. [Document 95] Sec. 11: NV&N^SE}4 AH south of relocated ing laws. The applicant desires the land Hwy. for a source of road construction Arizona T. 21 N., R. 2 W., material. NOTICE OF PROPOSED WITHDRAWAL AND Sec. 12: N E ^ N E ^ . For a period of 30 days from the date T 21 N., R. I.E ., RESERVATION OF LANDS of publication of this notice, persons hav Sec. 5: syaSEi4SEy,SEi4, SE14SW14SEV4 ing cause may present their objections in J anuary 12, 1956. SE14. writing to the undersigned official of the Arizona Highway Department has filed Sec. 8 : Ei/aNW^NE^NE^, NE^NE^NE1^, Bureau of Land Management, Depart Sec. 1 0 : Ey2SWy4 SEi/4NWy4, SE^SE»/* an application, Serial No. AR-05275, for -NW!4 , SW 1/4 SW ^ N E ^ , Ey2NWy4NE«4 ment of the Interior, 233-A Main Post the withdrawal of the lands described SW 14, NE&NE&SW14, NW^NWi/4SE>/4. Office Building, Phoenix, Arizona. below, from all forms of appropriation T. 22 N., R. 2 E., If circumstances warrant it, a public including the Mining and Mineral leasing Sec. 32: SyaNE&SE&NW^, SE%SE^ hearing will be held at a convenient time laws. The applicant desires the land for NWy4. and place, which will be announced. a source of road construction material. T. 22 N., R. 4 E., The determination of the Secretary on For a period of 30 days from the date of Sec. 21: S^SE&SW^SE^. the application will be published in the publication of this notice, persons having Sec. 28: Ny2N E ^ N W ^ N E ^ . F ederal R egister. A separate notice will cause may present their objections in The area described totals 242.50 acres be sent to each interested party of record. writing to the undersigned official of the in the Kaibab National Forest. The lands involved in the application Bureau of Land Management, Depart are; E. R. T ragitt, ment of the Interior, 233-A Main Post State Lands and Minerals G il a a n d S a l t R i v e r M e r i d i a n Office Building, Phoenix, Arizona. Staff Officer. T. 21 N., R. 6 E„ If circumstances warrant it, a public Sec. 15: SW%NW%NW%, NW%SW^NW»4, hearing will be held at a convenient time [F. R. Doc. 56-403; Filed, Jan. 18, 1956; NW&SE&NW&, NE14SW&NW14. and place, which will be announced. The 8:46 a. m.] determination of the Secretary on the The area described totals 40 acres in application will be published in the F ed the Coconino National Forest. eral R egister. A separate notice will be [Document 97] E. R. Tragitt, sent to each interested party of record. State Lands and Minerals The lands involved in the application Arizona are: Staff Officer. NOTICE OF PROPOSED WITHDRAWAL AND [F. R. Doc. 56-400; Filed, Jan. 18, 1956; G i l a a n d S a l t R iv e r M e r i d i a n RESERVATION OF LANDS 8:45 a. m.] T. 8 N., R. 26 E., Sec. 35: W& Lot 1 and W%E% Lot 1. J anuary 12,1956. Arizona Highway Department has filed The area described totals approxi an application, Serial No. AR-05270, for mately 29 acres in the Apache National [Document 94] the withdrawal of the lands described Forest. below, from all forms of appropriation Arizona E. R. T ragitt, including the Mining and Mineral leas State Lands and Minerals ing laws. The applicant desires the land NOTICE OF PROPOSED WITHDRAWAL AND Staff Officer. RESERVATION OF LANDS for a source of road construction mate [F. R. Doc. 56-402; Filed, Jan. 18, 1956; rials. January 12,1956. 8:46 a. m.] For a period of 36 days from the date Arizona Highway Department has filed of publication of this notice, persons hay an application, Serial No. AR-05272, for ing cause may present their objections in the withdrawal of the lands described writing to the undersigned official of the below, from all forms of appropriation [Document 96] Bureau of Land Management, Depart including the Mining and Mineral leas Arizona ment of the Interior, 233-A Main Post ing laws. Th£ applicant desires the land Office Building, Phoenix, Arizona. for a source of road construction NOTICE OF PROPOSED WITHDRAWAL AND If circumstances warrant it, a public material. RESERVATION Ot* LANDS hearing will be held at a convenient time For a period of 30 days from the date J anuary 12, 1956. and place, which will be announced. The of publication of this notice, persons Arizona Highway Department has filed determination of the Secretary on the having cause may present their objec an application, Serial No. AR-05225, for application will be published in the Fed tions in writing to the undersigned offi the withdrawal of the lands described eral R egister. A separate notice will be cial of the Bureau of Land Management, below, from all forms of appropriation sent to each interested party of record. Department of the Interior, 233-A Main including the Mining and Mineral leas The lands involved in the application Post Office Building, Phoenix, Arizona. ing laws. The applicant desires the land are: If circumstances warrant it, a public for a source of road construction mate G i l a a n d S a l t R i v e r M e r i d i a n hearing will be held at a convenient time rial. and place, which will be announced. T. 20 N., R. 10 E., For a period of 30 days from the date Sec. 2: S% Lot 5, SWJ4NWÎ4; The determination of the Secretary on of publication of this notice, persons the application will be published in the Sec. 3: Lot 2, SE^ Lot 8, E^SE&NE/i- having cause may present their objec T. 21 N. R 8 E F ederal R egister. A separate notice will tions in writing to the undersigned offi Sec. 1 1 : ' S y2 SW 14 NW%, NWÎ4 NWÎ4SW#> be sent to each interested party of record. cial of the Bureau of Land Management, N ya NE y4 NW y4 S W %. The lands involved in the application Department of the Interior, 233-A Main X. 21 N. R. 9 E are: ‘sec. 14:' sy 2NEy4 SWy4SEi4, S^NW^JEU Post Office Building, Phoenix, Arizona. 14 G i l a a n d S a l t R iv e r M e r i d i a n SE , SE%SW%SE%, SW&SE&SEy4. If circumstances 'warrant it, a public T. 21N..R. 10 E., _ . 10 T. 21 N., R. 7 E., hearing will be held at a convenient time Sec. 19: SW»4 Lot 8 , SE ^ Lot 9, E% Lo1 » Sec. 11: SW1 4 NE1 4 , excluding H. E. Survey and place, which will be announced. wy2 Lot 11, (South of Highway); No. 86, Pat. 603558 10/11/17. The determination of the Secretary on Sec. 27: SW ^SW ^SW ^; Thursday, January 19, 1956 FEDERAL REGISTER 403 Sec. 28: NEI/4SW1/4NW14. Ey2NWy4SWy4 for power purposes in Power Site Reserve cated on the facts presented in support NW^.SE^SE^SE^; - .. No. 661 created December 12, 1917, are of each claim or right. All applications Sec. 33: E&NE&NE»4, N^NE^SE^NE^; hereby restored to disposition under ap presented by persons other than those Sec. 34: Ni/2 NW%SW%NW &, Wy2NWyi propriate public land laws, subject to the referred to in this paragraph will be sub NW^, Lot 4; ject to the applications and claims men Sec. 35: E^SW^SW^. provisions of Section 24, of the Federal Power Act of June 10,1920 (41 Stat. 1075; tioned in this paragraph. The area described totals 2JL6.69 acres 16 U. ,S. C. 818) as amended. (2) All valid applications under the in the Coconino National Forest. Homestead, Desert Land, and Small W i l l a m e t t e M e r i d i a n , O r e g o n Tract Laws by qualified veterans of E. R. T ragitt, T. 2 S., R. 3 E., World War II or of the Korean Conflict, State Lands and Minerals Sec. 23, Lot 8 . Staff Officer. and by others entitled to preference 4.20 acres. rights under the act of September 27, [F. R. Doc. 56-404; Piled, Jan. 18, 1956; 1944 (58 Stat. 747; 43 U. S. C. 279-284 as 8:46 a. m j 2. The lands are located along the Clackamas River, in northwestern Clack amended), presented prior to 10:00 a. m. amas County, Oregon. They are rela on February 16, 1956, will be considered tively level with some dirt cliffs, with a as simultaneously filed at that hour. Rights under such preference right ap [Oregon 04822] silty sandy soil subject to erosion from the annual flooding. The lands support plications filed after that hour and be Oregon fore 10:00 a. m. on May 17, 1956, will be a stand of underbrush with a few scat governed by the time of filing. NOTICE OF PROPOSED WITHDRAWAL AND tered Douglas fir and cottonwood trees. RESERVATION OF LANDS They have little potential use other than (3) All valid applications and selec for the purposes of stream flow tions under the nonmineral public land Bureau of Land Management, Depart protection. laws, other than those coming under ment of the Interior, has filed an appli 3. No application for lands will be al paragraphs (1) and (2) above, and ap cation, Serial No. Oregon 04822, for the lowed under the homestead, desert land, plications and offers under the mineral withdrawal of the lands described below, small tract, or other nonmineral public leasing laws, presented prior to 10:00 from all forms of appropriation under land law, unless the lands have already a. m. on May 17, 1956, will be considered the public land laws, general mining been classified as valuable or suitable for as simultaneously filed at that hour. laws, and leasing under the mineral leas such type of application or shall be so Rights under such applications and se ing laws. classified upon consideration of an ap lections filed after that hour will be gov The applicant desires the land for pro plication. Any application that is filed erned by. the time of filing. tection of the Bureau’s Sand Dune Con will be considered on its merits. The 7. Persons claiming veteran’s prefer trol Project (LM-35—P-2 Eugene). lands will not be subject to Occupancy ence rights under paragraph a (2) above For a period of 30 days from the date must enclose with their applications of publication of this notice, persons hav or disposition until they have been classified. proper evidence of military or naval ing cause may present their objections in service, preferably a complete photo writing to the undersigned official of the 4. Any disposition of the lands de scribed herein shall be subject to the static copy of the certificate of honor Bureau of Land Management, Depart stipulation that if and when the land is able discharge. Persons claiming prefer ment of the Interior, 1001 Lloyd Blvd., ence rights based upon valid settlement, P. O. Box 3861, Portland 8, Oregon. required in whole or in part for power development purposes, any structures or statutory preference, or equitable claims If circumstances warrant it, a public must enclose properly corroborated hearing will be held at a convenient time improvements placed thereon which may be found to obstruct or interfere with statements in support of their applica and place, which will be announced. tions, setting forth all facts relevant to The determination of the Secretary on such development, shall without cost, expense or delay to United States, its their claims. Detailed rules and regula the application will be published in the tions governing applications which may Federal R egister. A separate notice licensees or permittees, be removed or related insofar as may be necessary to be filed pursuant to this notice can be will be sent to each interested party of found in Title 43 of the Code of Federal record. eliminate interference with such power development. Regulations. The lands involved in the application 8. Inquiries concerning the above are: 5. The lands described shall be subject to application by the State of Oregon for lands shall be addressed to Manager, W il l a m e t t e M e r i d i a n , O r e g o n a period of 90 days from the date of this Land Office, Bureau of Land Manage T-18 S., R, 12 w., Lane County, order for right of way for public high ment, P. O. Box 3861, (1001 N. E. Lloyd Sec. 21: Lots 5, 6, 7, 8, Wi/aEVfe; ways or as a source of material for con Boulevard) Portland 8, Oregon. Sec. 28 : Lots 5,6.7, 8. EftSW%, W&SEft; struction of such highways, in accord R ussell E. Getty, Sec, 33: Lots I, 2, 3, 4, E^wyk, Ey2 ; ance with and subject to provisions of Acting State Supervisor. Sec. 34: Lot 5, SWy4NWy4, W&SW&.. Section 24, of the Federal Power Act, as 1.291.25 acres. amended, and the special stipulation pro January 11,1956. vided in the preceding paragraph. [F. R. Doc. 56-407; Filed, Jan. 18, 1956; R ussell E. G etty, 6. Subject to any existing valid rights 8:47 a. m.] Acting State Supervisor. and the requirements of applicable laws, January 12, 1956. the lands described in Paragraph 1, sub tp- R. Doc. 56-405; Piled, Jan. 18, 1956; ject to Paragraph 2, hereof, are hereby 8:47 a. m.] opened to filing of applications, selec W ashington tions and locations in accordance with NOTICE OF PROPOSED WITHDRAWAL AND the following: RESERVATION OF LANDS a. Applications and selections under [Oregon 04847] the nonmineral public land laws and ap J anuary 11,1956. Oregon plications and offers under the mineral Department of Agriculture, State of leasing laws may be presented to the Washington, Olympia, Washington, has ® providing for opening of revested Manager mentioned below, beginning on filed an application, Serial No. Washing REGON AND CALIFORNIA RAILROAD LANDS the date of this order. Such applica ton 02212, for the withdrawal of the Ore^SUan^ determination DA-409, tions, selections, and offers will be con lands described below, from all forms of sion federal Power Commis- sidered as filed on the hour and respec appropriation, including the mining and 54i q i *11 accordance with Order No. tive dates shown for the various classes mineral leasing laws insofar as part of of T arf^ x10n the Director, Bureau enumerated in the following paragraphs: the lands are concerned and as indicated 195a /?nManagement. approved April 24, (1) Applications by persons having below. The applicant desires the land follows1.9 P’ R- 2473)* ifc is ordered as prior existing valid settlement rights, for use in connection with the Moxee preference rights conferred by existing Plant Introduction and Quarantine Sta far lands hereinafter described so laws, or equitable claims subject to al tion, on which to conduct experimental they are withdrawn and reserved lowance and confirmation will be adjudi and research activities with fruit trees. 404 NOTICES For a period of 30 days from the date of Grazing District No. 5. The remaining applications and offers under the min publication of this notice, persons having lands are situated in Cassia County, eral-leasing laws. They will be open to cause may present their objections in about 9 miles east and northeast of location under the United States mining writing to the undersigned official of the Rupert. The land is within and adjoins laws beginning at 10:00 a. m. on May 19, Bureau of Land Management, Depart a general area which has been classified 1956. ment of the Interior, Room 209, Federal as suitable for desert land development Persons claiming veterans preference Building, Spokane 1, Washington. upon a showing as to the availability of rights must enclose with their applica If circumstances warrant it, a public ground water. Soil on each tract has tions proper evidence of military or hearing will be held at a convenient time some suitability for cropping under ir naval service, preferably a complete and place, which will be announced. The rigation. It is mainly sandy loam with photostatic copy of the certificate of hon determination of the Secretary on the some rock outcrop and float rock. Vege orable discharge. Persons claiming application will be published in the F ed tative cover is primarily cheatgrass with preference rights based upon valid set eral R egister. A separate notice will be some scattered sagebrush. The land is tlement, statutory preference, or equita sent to each interested party of record. within Idaho Grazing District No. 2. ble claims must enclose properly corrob The lands involved in the application No application for the lands may be al orated statements in support of their are: lowed under the homestead, desert-land, claims. Detailed rules and regulations W a s h i n g t o n —W i l l a m e t t e M e r i d i a n small tract, or any other nonmineral governing applications which may be public-land law unless the lands have al filed pursuant to this notice can be found T. 12 N., R. 21 E. W. M., ready been classified as valuable or suit in Title 43 of the Code of Federal Regu NE %, Section 34. able for such type of application, or shall lations. The total area aggregates approxi be so classified upon the consideration Inquiries concerning the lands shall be mately 160 acres. of an application. Any application that addressed to the Manager, Land Office, It is proposed to withdraw the NWXA is filed will be considered on its merits. Bureau of Land Management, Boise, NE1/* of above land from all forms of The lands will not be subject to occu Idaho. appropriation, including the mining and pancy or disposition until they have been Edward W oozley, mineral leasing laws. classified. Director, Subject to any valid existing rights Bureau of Land Management. F red S. W eiler, State Supervisor. and the requirements of applicable law, [P. R. Doc. 56-408; Piled, Jan. 18, 1956; the lands are hereby opened to filing of 8:47 a. m.] [P. R. Doc. 56-406; Piled, Jan. 18, 1956; applications, selections, and locations in 8:47 a. m.] accordance with the following: a. Applications and selections under DEPARTMENT OF LABOR the nonmineral public-land laws may be presented to the Manager mentioned Wage and Hour Division Bureau of Reclamation below, beginning *on the date of this Learner Employment Certificates Minidoka Project, Idaho order. Such applications and selections will be considered as filed on the hour ISSUANCE TO VARIOUS INDUSTRIES ORDER OF REVOCATION and respective dates shown for the vari Notice is hereby given that pursuant J uly 26, 1954. ous classes enumerated in the following to section 14 of the Fair Labor Stand paragraphs: Pursuant to the authority delegated by ards Act of 1938, as amended (52 Stat. (1) Applications by persons having 1068, as amended; 29 U. S. C. and Sup. Departmental Order No. 2515 of April 7, prior existing valid settlement rights, 1949 (14 F. R. 1937), I hereby revoke 214) and Part 522 of the regulations preference rights conferred by existing issued thereunder (29 CFR Part 522), Departmental Orders of November 17, laws, or equitable claims subject to al 1902, December 20, 1907, March 18, 1908 special certificates authorizing the em lowance and confirmation will be ad ployment of learners at hourly wage and February 18, 1910, in so far as said orders affect the following-described judicated on the facts presented in rates lower than the minimum wage land: Provided, however, That such revo support of each claim or right. All ap rates applicable under section 6 of the plications presented by persons other act have been issued to the firms listed cation shall not affect the withdrawal of than those referred to in this paragraph any other lands by said orders or affect below. The employment of learners will be subject to the applications and under these certificates is limited to the any other orders withdrawing or reserv claims mentioned in this paragraph. ing the land hereinafter described: terms and conditions therein contained (2) All valid applications under the and is subject to the provisions of B o i s e M e r i d i a n , I d a h o Homestead, Desert Land, and Small Part 522. The effective and expira T. 8 S., R. 25 E., Tract Laws by qualified veterans of tion dates, occupations, wage rates, Sec. 35, NW%NW%. World War II or of the Korean conflict, T. 9 S., R. 25 E., and by others entitled to preference number or proportion of learners and Sec. 11, SE14SW14 and wy2SE}4; rights under the act of September 27, learning periods for certificates issued Sec. 13, NE}4 and E^NW%; 1944 (58 Stat. 747; 43 U. S. C. 279-284 under general learner regulations Sec. 21, NW&SW^; as amended), presented prior to 10:00 (§§ 522.1 to 522.12) are as indicated be Sec. 23, NW1/4, NWy4NEi4SW'/4, Sy2NEi4 low; conditions provided in certificates sw»/4, NW&SWJ4 and sy2sw»4 . a. m. on February 18, 1956, will be con sidered as simultaneously filed at that issued under special industry regulations The above areas aggregate approxi hour. Rights under such preference are as established in these regulations. mately 750 acres. right applications filed after that hour Apparel Industry Learner Regulation L. N. McClellan, and before 10:00 a. m. on May 19, 1956,. (29 CFR 522.20 to 522.24, as a m e n d e d Acting Commissioner. will be governed by the time of filing. April 19, 1955, 20 F. R. 2304). (3) All valid applications and selec [67608] Belton Shirt Co., Inc., Belton, S. C., effective tions under the nonmineral public-land 1-4-56 to 1- 3- 57; 10 percent of the to tal num January 13,1956. laws, other than those coming under par ber of factory production workers for nor I concur. The records of the Bureau agraphs (1) and (2) above, presented labor turnover purposes (men’s sport shir /• of Land Management will be noted prior to 10:00 a. m. on May 19, 1956, will Donlin Sportswear, Inc., New Tazeweu. accordingly. be considered as simultaneously filed at Tenn., effective 1-4-56 to 1- 3- 57; 10 lear for normal labor turnover purposes (m The NW&NW1/^ sec. 36, T. 8 S., R. 25 that hour. Rights, under such applica tions and selections filed after that hour sport shirts). j Til E., Boise Meridian, is located in Minidoka Forest City Manufacturing Co., Virden, ■> County about 9 miles northeast of Ru will be governed by the time of filing. effective 1-19-56 to 1-18-57; 10 le^ e* pert, Idaho. Soil is sandy loam to fine (b) The NWi4NW}4, sec. 35, T. 8 S., normal labor turnover purposes (junior sandy loam with some rock outcrop. R. 25 E., and the SE&SW1/*, W ^ SE ^ , women’s dresses). ton Vegetative cover consists primarily of sec. 11, SWi4NWi4, sec. 13, T. 9 S., R. Forest City Manufacturing Co., S ta u > 111., effective 1-19-56 to 1-18-57; 10 leam«J sagebrush, rabbitbrush, and cheatgrass. 25 E., have been open to location under for normal labor turnover purposes (J Portions of this tract have general suit the mining laws and to applications and and women’s dresses). _, _n ability for cropping if provided with irri offers under the mineral-leasing laws. Jamestown Shirt Corp., Jamestown, gation water. The tract is in Idaho The remaining lands have been open to effective 1-3-56 to 7-2-56; 100 learners Thursday, January 19> 1956 FEDERAL REGISTER 405 plant, expansion purposes (men’s and boys’ [Administrative Order 455] ing, among other processes, the knitting, sports shirts) (replacement certificate). P uerto R ico dyeing, clocking, and all phases of fin L & H Shirt Co., Cochran, Ga., effective 1- ishing hosiery, but not including the 10-56 to 1-9-57; 10 percent of the total num APPOINTMENTS TO INVESTIGATE CONDITIONS manufacturing or processing of yarn or ber of factory production workers for normal AND RECOMMEND M INIM UM WAGES FOR labor turnover purposes (boys’ sport and thread. dress shirts). CERTAIN INDUSTRIES; NOTICE OF HEARING Industry Committee No. 20-C is com Lurrie Pizer Co., 717 North Jeffers, North Pursuant to authority under the Fair posed of the following representatives: Platte, Nebr., effective 1-6-56 to 7-5-56; 10 Labor Standards Act of 1038 (52 Stat. For the public: learners for expansion purposes (children’s 1060, as amended, 20 U. S. C. and Sup. dresses). Russell Andrew Smith, Chairman, Ann Salant and Salant, Inc., First Street, Law- 201 et seq.), and Reorganization Plan Arbor, Michigan. renceburg, Tenn., effective 1-20-56 to 1-19- No. 6 of 1950 (5 Ü. S. C. 611), I hereby William E. Simkin, Philadelphia, Pennsyl 57; 10 percent of the total number of factory appoint, convene, and give notice of the vania. production workers for normal labor turn hearings of Industry Committee No. Jaime Benitez, Rio Piedras, Puerto Rico. over purposes (cotton work shirts and work 20-A for the men’s and boys’ clothing jackets). and related products industry in Puerto For the employers: The Salisbury Co., Salisbury, Mo., effective Rico, Industry Committee No. 20-B for David B. Knapp, New York, New York. 1-12-56 to 1-11-57; 10 percent of the total the hosiery industry in Puerto Rico, and Oscar Castro, Mayaguez, Puerto Rico. number of factory production workers for Samuel S. Berger, Naranjito, Puerto Rico. normal labor turnover purposes (men’s and Industry Committee No. 20-C for the young men’s dress trousers and slacks)'. artificial flower industry in Puerto Rico. For the employees: Smith Bros. Manufacturing Co., St. Joseph, Industry Committee No. 20-A is com Mo„ effective 1-10-56 to 1-9-57; 10 percent of Milton Fried, New York, New York. posed of the following representatives: Alexander McKeown, Philadelphia Penn the total number of factory production work For the public: ers for normal labor turnover purposes (over sylvania. alls, pants, one-piece suits, etc.). Russell Andrew Smith, Chairman, Ann Hipolito Marcano, San Juan, Puerto Rico. Smith Bros. Manufacturing Co., Carthage, Arbor, Michigan. For the purpose of this order the arti Mo., effective 1-11-56 to 1-10-57; 10 percent William E. Simkin, Philadelphia, Pennsyl of the total number of factory production vania. ficial flower industry in Puerto Rico is workers for normal labor turnover purposes Jaime Benitez, Rio Piedras, Puerto Rico. defined as follows: (overalls, jeans, jackets), The manufacture and assembling of Smith Bros. Manufacturing Co., Webb City, For the employers: artificial flowers,. buds, berries, foliage, Mo., effective 1-11-56 to 1-10-57; 10 percent . David B. Knapp, New York, New York. leaves, fruits, plants, stems, and of the total number of factory production, Oscar Castro, Mayaguez, Puerto Rico. branches. * workers for normal labor turnover purposes Richard J. Broadman, Santurce, Puerto I hereby refer to each of the above (shirts). Rico. mentioned industry committees the Smith Bros. Manufacturing Co., Neosho, Mo., effective 1-11-56 to 1-10-57; 10 percent For the employees: question of the minimum wage rates to of the total number of factory production Milton Fried, New York, New York. be fixed under section 6 (c) of the Act workers for normal labor turnover purposes Alexander McKeown, Philadelphia, Penn for its industry. Each such industry (pants, ladies’ jeans). sylvania. committee shall investigate conditions in Smith Bros. Manufacturing Co., Lamar, Hipólito Marcano, San Juan, Puerto Rico. its industry, and the committee, or any Mo., effective 1-11-56 to 1-10-57; 10 learners authorized sub-committee thereof, shall for normal labor turnover purposes (dun For the purpose of this order the men’s hear such witnesses and receive such garees and cossack coats). and boys’ clothing and related products evidence as may be necesary or appropri Hosiery Industry Learner Regulations industry in Puerto Rico is defined as ate to enable the committee to perform (29 CFR 522.40 to 522.43, as amended follows: its duties and functions under the Act. April 19,1955, 20 F, R. 2304). The manufacture from any material The Industry Committees herein ap of men’s and boys’ clothing and related pointed and convened shall commence Spalding Knitting Mills, South Pittsburg, products, including, but without limita Tenn., effective 1-4-56 to 1-3-57; 5 percent their hearings on February 20, 1956, at of the total number of factory production tion, suits, coats, overcoats, trousers, 2 P. M. in room 412, New York Depart workers for normal labor turnover purposes shirts,, underwear, nightwear, work ment Store Building, Stop 16^, Ponce de (seamless). clothing, sportswear (including bathing Leon Avenue, Santurce, Puerto Rico, suits, riding habits, and athletic uni consecutively in alphabetical order. Independent Telephone Industry forms) , heavy outerwear, neckties, caps, Warner Regulations (20 CFR 522.70 to Each committee will meet at the same hats (except hand-made straw hats), place before its hearing to make its in 522.74, as amended April 10, 1055, 20 belts, robes, and dressing gowns, rain P R. 2304) . vestigation and appropriate decisions coats, suspenders, garters, academic caps concerning its hearing. Industry Com Mt. Pulaski Telephone and Electric Co., Mt. and gowns, vestments, costumes, and mittee No. 20-A will meet at 10 A. M. and rulaski, HI., effective 1-21-56 to 1-20-57. other items of apparel and accessories Industry Committees No. 20-B and 20-C Each certificate has been issued upon (except gloves, handkerchiefs, sweaters, will meet at an hour to be designated by Jne employer’s representation that em scarves and mufflers, hosiery, and shoes). the committee chairman. ployment of learners at subminimum Industry Committee No. 20-B is com In order to reach as rapidly as is rates is necessary in order to prevent posed of the following representatives: economically feasible the objective of curtailment of opportunities for em For the public: the minimum wage prescribed in para ployment, and that experienced workers Russell Andrew Smith, Chairman, Ann graph (1) of section 6 (a) of the Act (75 or the learner occupations are not Arbor, Michigan. cents an hour prior to March 1,1056, and William E. Simkin, Philadelphia, Pennsyl $1.00 an hour on and after March 1, ppii ^ .le" T*ie certificates may be can- vania. , I11 manner provided in the Jaime Benitez, Rio Piedras, Puerto Rico. 1956) each industry committee shall ®~3ti°ns %and as indicated in the recommend to the Administrator the rtificates. Any person aggrieved by For the employers: highest minimum wage rates for the in e issuance of any of these certificates David B. Knapp, New York, New York. dustry which it determines, having due tho sf6^. a reyiew or reconsideration Oscar Castro, Mayaguez, Puerto Rieo. regard to economic and competitive con psuieo* fifteen days after publi- Malcolm Gordon, Cayey, Puerto Rico. ditions, will not substantially curtail em ^ won of this notice in the F ederal ployment in the industry and will not For the employees: Part;152* pursuan^ to the provisions of give any industry in Puerto Rico a com Milton Fried, New York, New York. petitive advantage over any industry in Alexander McKeown, Philadelphia, Penn the United States outside of Puerto Rico. Signed at Washington, D. C., this 11th sylvania. Where the industry committee finds that uay of January 1056. Hipólito Marcano, San Juan, Puerto Rico. a higher minimum wage may be deter Milton B rooke, For the purpose of this order the mined for employees engaged in certain Authorized Representative Hosiery Industry in Puerto Rico is de activities or in the manufacture of cer of the Administrator. fined as follows: tain products in the industry than may p- 41. DoC 56-409; Filed; Jan. 18, 1956; The manufacture or processing of full- be determined for other employees in the 8:48 a. m.] fashioned and seamless hosiery, includ industry, the industry committee shall 406 NOTICES recommend such reasonable classifica Springs Telephone Company, in Oakham, permit (Channel 19, Peoria, Illinois) to tions within the industry as it deter Massachusetts. increase the height of the antenna struc mines to be necessary for the purpose of The Commission, having under consid ture to 1,009 feet above ground and to fixing for each classification the highest eration an application filed by New Eng reduce the effective radiated power; and minimum wage rate that can be deter land Telephone and Telegraph Company It appearing that on December 13, mined for it under the principles set out for a certificate under section 221 (a) 1955, the Airspace Panel of the Air Co here which will not substantially curtail of the Communications Act of 1934, as ordinating Committee in Washington, employment in such classification and amended, that the proposed acquisition D. C., recommended disapproval of the will not give a competitive advantage to by New England Telephone and Tele antenna structure proposed in the any group in the industry. No classifica graph Company of certain telephone above-entitled application on the ground tion shall be made, however, and no plant and properties of Earle C. Parker that said structure would, in substance, minimum wage rate shall be fixed solely and Mabel E. Conant, a partnership, d/b result in a “definite hazard” to air oper on a regional basis or on the basis of age as Oakham and Coldbrook Springs Tele ations due to the excessive height; and or sex. In determining whether there phone Company furnishing telephone It further appearing that pursuant to should be classification within the in service in and around Oakham, Massa the provisions of section 309 (b) of the dustry, in making such classifications, chusetts, will be of advantage to the per Communications Act of 1934, as amend and in determining the minimum wage sons to whom service is to be rendered ed, the above-named applicant was ad rates for such classifications, the com and in the public interest; vised by letter dated December 19, 1955, mittee shall consider, among other It is ordered, This 11th day of January of all objections to the above applica relevant factors, the following: (1) com 1956, that pursuant to the provisions of tion; that the Commission was unable to petitive conditions as affected by trans section 221 (a) of the Communications. determine that a grant of said applica portation, living and production costs; Act of 1934, as amended, the above ap tion would be in the public interest; and (2) the wages established for work of like plication is assigned for public hearing was afforded an opportunity to reply; or comparable character by collective for the purpose of determining whether and labor agreements negotiated between the proposed acquisition will be of ad It further appearing, that upon due employers and employees by representa vantage to the persons to whom service consideration of the above-entitled ap tives of their own choosing; and (3) the is to be rendered and in the public plication, the Commission’s letter of wages paid for work of a like or com interest; and December 19, 1955, and the applicant’s parable character by employers who It is further ordered, That the hearing reply thereto filed December 21,1955, the voluntarily maintain minimum wage upon said application be held at the of Commission finds that the above-named standards in the industry. fices of the Commission in Washington, applicant is legally and financially and The Administrator shall prepare an D. C. beginning at 10:00 a. m. on the otherwise qualified to construct the tele economic report containing such data 14th day of February 1956, and that a vision station proposed in the above- as he is able to assemble pertinent to the copy of this order shall be served upon entitled application and is technically matters to be referred to a committee. the Governor of the State of Massachu qualified except as to the matters speci Copies of these reports may be obtained setts; the Massachusetts Department of fied in issue “1” set forth below; at the National and Puerto Rican Offices Public Utilities; New England Telephone It is ordered, That, pursuant to section of the Department of Labor as soon as and Telegraph Company; Earle C. 309 (b) of the Communications Act of they are completed and prior to the hear Parker and Mabel E. Conant, a partner 1934, as amended, the above-entitled ing. Each committee will take official ship, d/b as Oakham and Coldbrook application is designated for hearing at notice of the facts stated in the economic Springs Telephone Company; and the a time and place to be specified in a sub report to the extent they are not refuted Postmaster of Oakham, Massachusetts; sequent order, upon the following issues: by evidence received at the hearing. and 1. To determine whether there is a The procedure of these industry com It is further ordered, That within ten reasonable possibility that the antenna mittees will be governed by Title 29 of structure proposed in the above-entitled days after the receipt from the Commis application may constitute a menace to the Code of Federal Regulations, Part sion of a copy of this Order, the appli 511, as revised, and published in the No air navigation. cant herein shall cause a copy hereof to 2. To determine whether, on the basis vember 4,1955 issue of the F ederal Reg be published in a newspaper or news ister (20 F. R. 8285), which requires, of the evidence adduced with respect to papers having general circulation in the above issue, a grant of the above- among other things, notice of intent and Oakham, Massachusetts, and shall fur other data to be filed at specified times entitled application would serve the pub nish proof of such publication at the lic interest, convenience and necessity. before the hearing by those who would hearing herein. participate either as witnesses or parties. Released: January 13, 1956. Released: January 13, 1956. Signed at Washington, D. C., this 13th F ederal Communications day of January 1956. F ederal Communications Commission, ommission J ames P. Mitchell, C , [seal] Wm. P. Massing, Secretary of Labor. [ seal! W m. P. Massing, Acting Secretary. Acting Secretary. [P. R. Doc. 56-431; Piled, Jan. 18, 1956; [P. R. Doc. 56-425; Piled, Jan. 18, 1956; 8:51 a. m.] [P. R. Doc. 56-424; Piled, Jan. 18, 1956; 8:50 a. m.] 8:50 a. m.] FEDERAL COMMUNICATIONS [Dockets Nos. 11607, 11608; FCC 56-411 COMMISSION [Docket No. 11604; FCC 56-36] N orth Central B roadcasting Co. and [Docket No. 116031 H illtop B roadcasting Co. (WTVH) M unising-A lger B roadcasting Co. New England T elephone and T elegraph ORDER DESIGNATING APPLICATION FOR ORDER DESIGNATING APPLICATIONS FOR CON Co. HEARING ON STATED ISSUES SOLIDATED HEARING ON STATED ISSUES ORDER ASSIGNING MATTER FOR HEARING In re application of Hilltop Broadcast In re applications of North Central ing Company (WTVH), Peoria, Illinois, Broadcasting Company, Munising, Mic ‘ In the matter of the application of Docket No. 11604, File No. BMPCT-3492; igan, Docket No. 11607, File No* *> ~ New England Telephone and Telegraph for modification of construction permit. 10004; Charles A. Symon, Stanley Company, Docket No. 11603, File No. At a session of the Federal Communi Sadak and Richard E. Hunt d/b P-C-3695; for a certificate under section cations Commission, held at its offices Munising-Alger Broadcasting Compa . 221 (a) of the Communications Act of in Washington, D. C„ on the 11th day of Munising, Michigan, Docket No. 11 ’ 1934, as amended, to acquire certain tele January, 1956; File No. BP-10142; for construction pw phone plant and properties of Earle C. The Commission having under consid Parker and Mabel E. Conant, a partner eration the above-entitled application At a session of the Federal Communi ship, d/b as Oakham and Coldbrook requesting modification of construction cations Commission held at its omc Thursday, January 19, 1956 FEDERAL REGISTER 407 Washington, D. C., on the 11th day of surance that the proposal set forth in lem of 2 and 25 mv/m contour overlap January 1956; the application will be effectuated. with Station WINI still obtains; and The Commission having under consid Released; January 13, 1956. It further appearing that, pursuant to eration the above-entitled applications section 309 (b) of the Communications of the North Central Broadcasting Com F ederal Communications Act of 1934, as amended, the said appli pany and Charles A. Symon, Stanley L. Commission, cation is designated for hearing, at a time Sadak, and Richard E. Hunt d/b as [seal] Wm. P. Massing, and place to be specified in a subsequent Munising-Alger Broadcasting Company, Acting Secretary. order, upon the following issues: each for a construction permit for a new [P. R. Doc. 56-426; Filed, Jan. 18, 1956; 1. To determine the areas and popula standard broadcast station to operate on 8:50 a. m.] tions which would receive primary serv 1400 kilocycles with a power of 250 watts, ice from the proposed operation and the unlimited time, at Munising, Michigan; availability of other primary service to It appearing that each of the appli such areas and populations. cants is legally, technically, financially, [Docket No. 11609; FCC 56-42] 2. To determine whether the proposed and otherwise qualified, except as may operation would involve objectionable appear from the issues specified below, Anna B roadcasting Co. interference with Station WINI, Mur to operate its proposed station, but that order designating application for hear physboro, Illinois, or any other existing the operation of both stations as pro ing ON STATED ISSUES station, and, if so, the nature and extent posed would result in mutually destruc thereof, the areas and populations af tive interference; and In re application of Pierce E. Lackey fected thereby, and the availability of It further appearing that, pursuant to and F. E. Lackey d/b as Anna Broadcast other primary service to such areas and section 309 (b) of the Communications ing Company, Anna, Illinois, Docket No. populations. Act of 1934, as amended, the subject ap 11609; File No. BP-10033; for construc 3. To determine whether the respective plicants were advised by letter dated tion permit. 2 and 25 mv/m contours of tire proposed November 22, 1955, of the aforemen At a session of the Federal Communi operation and Station WINI, Murphys tioned deficiency and that the Commis cations Commission held at its offices in boro, Illinois, would overlap. sion was unable to conclude that a grant Washington, D. C., oh the 11th day of 4. To determine in the light of the evi of either application would serve the January 1956 ; dence adduced pursuant to the foregoing public interest; and The Commission having under consid issues if a grant of the subject applica It further appearing that a timely re eration the above-entitled application of tion would serve the public interest. ply was filed by each of the applicants; Pierce E. Lackey and F. E. Lackey d/b It is further ordered, That Cecil W. and as Anna Broadcasting Company, for a Roberts and Jane A. Roberts, licensee of It further appearing that the Commis construction permit for a new standard Station WINI, Murphysboro, Illinois, is sion, after consideration of the replies, broadcast station to operate on 1440 kilo made a party to the proceeding. is of the opinion that a hearing is neces cycles with a power of 500 watts, daytime sary; only, at Anna, Illinois; Released: January 13, 1956. It is ordered, That, pursuant to section It appearing that thé applicant is le F ederal Communications 309 (b) of the Communications Act of gally, technically, financially and other Commission, 1934, as amended, the said applications wise qualified to operate the stations as [seal] Wm. P. Massing, are designated for hearing in a consoli proposed, but that the application may Acting Secretary. involve interference to Station WINI, dated proceeding, at a time and place to [F. R. Doc. 56-427; Filed, Jan. 18, 1956; be specified in a subsequent order, upon Murphysboro, Illinois (1420 kc, 500 w, 8:50 a. m.] the following issues; daytime only), and that measurements 1. To determine the areas and popula are necessary to prove that no overlap of tions which would receive primary, service the 2 and 25 mv/m contours of the pro from each of the proposed operations, posed operation and Station WINI would [Docket No. 11610; FCC 56-43] and the availability of other primary occur; and service to such areas and populations. It further appearing that, pursuant to F ranklin County B roadcasting Co. 2. To determine which of the opera section 309 (b) of the Communications (WYES) tions proposed in the above-entitled ap Act of 1934, as amended, the subject ap memorandum opinion and order desig plicant was advised by letter dated No plications would better serve the public nating application for hearing on interest in the light of the evidence ad vember 22, 1955, of the aforementioned STATED ISSUES duced under the foregoing issues and rec deficiencies and that the Commission ord made with respect to the significant was unable to conclude that a grant of In re application of Clinton County differences between the applicants as to: the application would be in the public Broadcasting Corp. d/b as Franklin (a) The background and experience interest; and County Broadcasting Co. (WYES), Cha- i each of the above-named applicants It further appearing that in a letter teaugay, New York, Docket No. 11610, 10 and operate its proposed station, dated December 2, 1955, Station WINI File No. BP-9960; for construction per ib) The proposals of each of the opposed the grant of the subject applica mit for new standard broadcast station. DQve-named applicants with respect to tion and requested that it be designated 1. The Commission has before it for e management and operation of the for hearing ; and consideration a protest filed on Decem Proposed stations. It further appearing that the appli ber 15, 1955 by North Country Broad in p Programming seryice proposed cant submitted an amendment on De casting Co., Inc., licensee of Station cember 12, 1955, which apparently was WICY, Malone, New York (1490 kc, 250 tions ^be a*30ve"menbi°ned applica- intended to show by field intensity w, Uni.), pursuant to section 309 (c) of J- To determine, in the light of measurèments that no overlap of the 2 the Communications Act of 1934, as a AihiJur^;lier aPPearing that counsel for script 12Q0-1202), be, and it is hereby, T e x a s E a s t e r n T ransmission C o r p . e t a l . (Krm^erque Broadcasting Company affirmed. tinn foV agreed> however, with the posi- It is further ordered, That the Hearing NOTICE OF FINDINGS AND ORDERS Som aken by the Hearing Examiner that Examiner’s Order of January 3, 1956, as January 12,1956. as t-n . ®as°nable showing should be made modified on January 9, 1956, and as In the matters of Texas Eastern Trans tion ava,iiability of the land in ques- affirmed herein is made effective as of mission Corporation and Trunkline Gas accnniwH ^uggested that this could be this date. Company, Docket No. G-6508; Nueces the ^ if.hed by agreements between It is further ordered, That the next Royalty Company, Docket No. G-6915; withinrespecting general areas hearing conference in the above-entitled Holly Oil Company, Docket No. G-8807; ible w ertam radii which would be feas- proceeding is scheduled to be held at 4:30 Texas Eastern Transmission Corporation, Possible directional operations o’clock p. m., on Tuesday. February 7. No. 12----- g Docket No. G-8901; Sun Oil Company 410 NOTICES (Southwest Division), Docket No. G- with the Commission pursuant to Rule amended, a loan contract bearing the 8929; The Atlantic Refining Company, 221 under Regulation A and not in com following designation has been signed Docket No. G-8981; Phillips Petroleum pliance with Rule 220 thereof; on behalf of the Government acting Company, Docket No. G-9069; W. C. (2) Either an offering circular has not through the Administrator of the Rural McBride, Inc., Docket No. G-9209; The been and is not being delivered to of Electrification Administration: Vickers Petroleum Co., Inc., Docket No. ferees and purchasers of the said stock Loan designation: Amount G-9239. as required by Rule 219 (a) or an offer Florida 33M Pasco___ :______$100,000 Notice is hereby given that on January ing circular not meeting the require 3, 1956, the Federal Power Commission ments of Rule 219 (c), as particularized [seal] F red H. S trong, issued its findings and orders adopted in letters, dated August 18 and 23, 1955 Acting Administrator. December 29, 1955, issuing certificates of from the Commission’s staff, has been [F. R. Doc. 56-440; Filed, Jan. 18, 1956; public convenience and necessity in the and is being so delivered; 8:53 a.m.] above-entitled matters. (3) The offering has been and is being made by false and misleading state [seal] Leon M. F uquay, Secretary. ments of the issuer’s Vice-President, Hansel Chang; and [Administrative Order 5216] [F. R. Doc, 56-412; Filed, Jan. 18, 1956; (4) The offering was commenced and 8:48 a. m.] securities sold prior to the time per Texas mitted by Rule 219 (e); and LOAN ANNOUNCEMENT B. The failure to use an offering cir SECURITIES AND EXCHANGE cular required by Rule 219 (a) and the D ecember 5,1955. COMMISSION use of the offering circular not meeting Pursuant to the provisions of the Rural the requirements of Rule 219 (c) and the . Electrification Act of 1936, as amended, [File No. 24D-1836] oral statements of the issuer’s Vice-Pres a loan contract bearing the following U -H U ranium Corp. ident in connection with the offering designation has been signed on behalf of would, and did, operate as a fraud or de the Government acting through the Ad NOTICE OF AND ORDER FOR HEARING ceit upon the purchasers. ministrator of the Rural Electrification J anuary 12, 1956. C. Whether the order dated December Administration : U-H Uranium Corporation, P. O. Box 16,1955 suspending the exemption under Loan designation: Amount 535, Provo, Utah, having filed with the Regulation A with respect to U-H Ura Texas 91S San Patricio____ - _$820,000 Commission on July 13, 1955 a notifica nium Corporation should be vacated or tion on Form 1-A and an offering circu made permanent: [ seal] F red H. Strong, lar, and an amendment thereto on No It is further ordered, That Edward C. Acting Administrator. vember 16, 1955, relating to a proposed Johnson, or any officer or officers of the [F. R.' Doc. 56-441; Filed, Jan. 18, 1956; public offering of 6,000,000 shares of its Commission designated by it for that 8:53 a. m.] 5-cent par value nonassessable capital purpose shall preside at the hearing, and stock for the purpose of obtaining an ex any officer or officers so designated to emption from the registration provisions preside at any such hearing is hereby of the Securiites Act of 1933, as amended, authorized to exercise all of the powers [Administrative Order 5217] pursuant to the provisions of section 3 granted to the Commission under sec (b) thereof and Regulation A promul tions 19 (b), 21 and 22 (c) of the Securi W yoming gated thereunder; and ties Act of 1933, as amended, and to • loan announcement The Commission, on December 16, hearing officers under the Commission’s 1955, having issued an order pursuant to rules of practice: D ecember 5, 1955. Rule 223 (a) of the general rules and It is further ordered, That the Secre Pursuant to the provisions of the Rural regulations under the Securities Act of tary of the Commission shall serve a copy Electrification Act of 1936, as amended, a 1933, temporarily suspending the condi of this order, by registered mail, on U-H loan contract bearing the following des tional exemption under Regulation A and Uranium Corporation, P. O. Box 535, ignation has been signed on behalf of the affording to any person having any in Brovo, Utah; Sandgren, Howard and Government acting through the Admin terest therein an opportunity to request Frazier, 290 North University Avenue, istrator of the Rural Electrification a hearing pursuant to said Rule 223, and Provo, Utah, and Hansel Chang, in care Administration : a written request for a hearing having of U-H Uranium Corporation, Honolulu, Loan designation: AmMh# been received by the Commission on De Hawaii, that notice of the entering of this Wyoming 13F Washakie___,— — $71, oou cember 27,1955, from the corporation, by order shall be given to all other persons its counsel, an,d counsel for the corpora by general release of the Commission, [seal] • F red H. Strong, tion having agreed orally to waive the and by publication in the F ederal R egis Acting Administrator. twenty-day period specified in Rule 223 ter. Any person who desires to be heard (b) ; and or otherwise wishes to participate in such F. R. Doc. 56-442; Filed, Jan. 18, 1956; The Commission deeming it necessary hearing shall file with the Secretary of 8:53 a. m ] and appropriate to determine whether to the Commission on or before February vacate the temporary suspension order or 2, 1956 a request relative thereto as pro to enter an order permanently suspend vided in Rule XVII of the Commission’s ing the exemption: rules of practice. [Administrative Order 5218] It is hereby ordered, That a hearing By the Commission. Georgia under the applicable provisions of the loan announcement Securities Act of 1933 and the Rules of [seal] Orval L. D uB ois, the Commission be held on February 6, Secretary. D ecember 7, 1955. 1956, at 10:00 a. m., m. s. t., at the Salt [F. R. Doc. 56-416; Filed, Jan. 18, 1956; Pursuant to the provisions of the Rum Lake City Branch Office of the Commis 8:49 a. m.] Electrification Act of 1936, as amen sion, at Room 420-A, Post Office Build a loan contract bearing the follow' ing, Salt Lake City, Utah, with respect designation has been signed on bena to the following specified matters and DEPARTMENT OF AGRICULTURE the Government acting through wie questions, without prejudice, however, Rural Electrification Administration ministrator of the Rural Electrifica to the specification of additional issues Administration : [Administrative Order 5215] AfllOWftt which may be present in these proceed Loan designation: " 10 000 ings: F lorida Georgia 39R Hart...... * A. Whether the terms and conditions LOAN ANNOUNCEMENT [seal] F red H. S trong, of Regulation A have not been complied Acting Administrator. with in that D ecember 5, 1955. - .«o 1956; (1) An offering of the securities has Pursuant to the provisions of the [F. R. Doc. 56-443; Filed, Jan- **• been made by communications not filed Rural Electrification Act of 1936. as 8:53 a. m ] Thursday, January 19, 1956 FEDERAL REGISTER 411 /\ [Administrative Order 5219] [Administrative Order 5223] Loan designation: Amount Wisconsin 37V Trempealeau____ $15,000 Ohio N orth Carolina [seal] F red H. S trong, LOAN ANNOUNCEMENT LOAN ANNOUNCEMENT Acting Administrator. D ecember 7,1955. D ecember 9, 1955. [F. R. Doc. 56-451; Filed, Jan. 18, 1956; Pursuant to the provisions of the Pursuant to the provisions of the Rural 8:54 a. m.] Rural Electrification Act of 1936, as Electrification Act of 1936, as amended, a amended, a loan contract bearing the loan contract bearing the following des following designation has been signed ignation has been signed on behalf of the on behalf of the Government acting Government acting through the Admin [Administrative Order 5227] istrator of the Rural Electrification Ad through the Administrator of the Rural All S tates Electrification Administration: ministration: Loan designation: Amount Loan designation: Amount ALLOCATION OF FUNDS FOR LOANS Ohio 50L Union______$310,000 North Carolina 35W Davidson.._$325, 000 D ecember 15,1955. [seal] F red H. S trong, [seal] R. G. Zook, Administrative Order No. 5160, dated Acting Administrator. Acting Administrator. September 29, 1955, is hereby amended [P. R. Doc. 56-444; Filed, Jan. 18, 1956; to read as follows: 8:53 a. m.] [F. R. Doc. 56-448; Filed, Jan. 18, 1956; Pursuant to section 3 (c) of the Rural 8:54 a. m.] Electrification Act of 1936, as amended, and upon information and data in the [Administrative Order 5220] files of the Rural Electrification Admin istration, I hereby determine that the Minnesota [Administrative Order 5224] number of farms not receiving central LOAN ANNOUNCEMENT N orth Carolina station electric service for each state and the number of such farms for the D ecember 7, 1955. LOAN ANNOUNCEMENT United States at the beginning of the Pursuant to the provisions of the D ecember 9, 1955. current fiscal year are as set forth in Rural Electrification Act of 1936, as Pursuant to the provisions of the Rural the following schedule, and I hereby allot amended, a loan contract bearing the Electrification Act of 1936, as amended, from the sum of $40,000,000, being following designation has been signed on a loan contract bearing the following twenty-five per centum of the total sum behalf of the Government acting through designation has been signed on behalf available for the current fiscal year, the the Administrator of the Rural Elec of the Government acting through the respective sums for loans in the several trification Administration: Administrator of the Rural Electrifica States as hereinafter set forth. Loan designation : ^ Amount tion Administration: Minnesota 92R South Itasca ___ $50,000 Loan designation: Amount Farms with Allotment for out central loans during [seal] F red H. S trong, North Carolina 48L Mecklenburg. $205,000 station elec the fiscal Acting Administrator. tric service year ending [seal] R . G. Zook, July 1,1955 June 30,1956 [P. R. Doc. 56-445; Filed, Jan. 18, 1956; Acting Administrator. 8:53 a. m.] United States. .. ____ [F. R. Doc. 56-449; Filed, Jan. 18, 1956; 314,350 $40,000,000 8:54 a.m.] Alabama. . 17,700 2,252,267 Arizona _ . _ 1,250 159,058 [Administrative Order 5221] Arkansas _ . _ _ __ _ 10,400 1,323,366 California__ .... 5,000 636,234 Wisconsin Colorado______5,300 674,408 Connecticut______150 19,087 allocation of funds for loans [Administrative Order 5225] Delaware______300 38,174 Florida. ______6,900 878,002 D ecember 7, 1955. W isconsin Georgia______12,100 1,539,685 Idaho ...... _ 1,200 152,696 I hereby amend: LOAN ANNOUNCEMENT Illinois.- ______. . . 5,500 699,857 (a) Administrative Ordéfc No. 3504, Indiana...... 3,550 451, 726 D ecember 9,1955. Iowa______4,550 578, 972 aated October 25, 1951, by reducing the Kansas______t 11,200 1,425,163 loan of $50,000 therein made for “Wis Pursuant to the provisions of the Kentucky______... 16,700 2,125,020 Rural Electrification Act of 1936, as Louisiana______7,200 916,176 consin 40T Barron” by $10,000 so that the Maine______. 1,400 178,145 reduced loan shall be $40,000. amended, a loan contract bearing the Maryland...-______2,150 273,580 following designation has been signed Massachusetts______300 38,174 F red H. S trong, on behalf of the Government acting Michigan______2,850 362,653 Minnesota______9,100 1,157,945 Acting Administrator. through the Administrator of the Rural Mississippi______30,050 3,823, 763 Electrification Administration: Missouri______10,550 1,342,453 [*• R. Doc. 56-446; Filed, Jan. 18, 1956; Montana______5,050 642,596 8:54 a. m.] Loan designation: Amount Nebraska...______7,450 947,988 Wisconsin 37U Trempealeau___ $500, 000 N evada...... 800 101,797 New Hampshire..._____ 250 31,812 New Jersey______200 25,449 [Administrative Order 5222] [SEAL] R. G. Zook, New Mexico______4,100 521,711 Acting Administrator. New York______2,200 279,943 Idaho North Carolina______13,800 1,756,004 [F. R. Doc. 56-450; Filed, Jan. 18, 1956; North Dakota______9,650 1,227,931 loan announcement Ohio.______5,050 642,596 8:54 a. m.] Oklahoma______10,900 1,386,989 Oregon..______... 1,500 190,870 D ecember 1955. Pennsylvania..____... __ 4,500 672,610 Ewr*«ant.t° the provisions of the Rural Rhode’ Island______50 6,362 South Carolina__ _ . . 13,550 1,724,193 a in»« Ca^®n Act of 1936, as amended, [Administrative Order 5226] South Dakota______8,400 1,068,872 .?ontract bearing the following Tennessee______14,900 1,895,976 W isconsin Texas____ ;______22,300 2,837,601 of has been signed on behalf Utah...... 700 89,073 Ad»«!!! • ®overn®ent acting through the LOAN ANNOUNCEMENT Vermont______400 50,899 Virginia . ______10,500 1,336,090 tion .nis^ator of the Rural Electrifica- Washington__. . . _____ 1,100 139,971 UOn Administration: D ecember 14, 1955. West Virginia______4,850 617,147 Pursuant to the provisions of the Rural Wisconsin..____ 5,000 636,234 Ifeh : Amount Wyoming______1,750 222,682 ûô 4AD Bonner...______$150, 000 Electrification Act of 1936, as amended, a loan contract bearing the following tSEAL] R. G. Zook, designation has been signed on behalf of [seal] Ancher N elsen, Acting Administrator. the'Government acting through the Ad Administrator. R' DcKr- 56-447; Filed, Jan. 18, 1956; ministrator of the Rural Electrification [F. R. Doc. 56-452; Filed, Jan. 18, 1956; 8:54 a. m.] Administration : 8:54 a. m.] 412 NOTICES [Administrative Order 5228] Loan designation: Amount [Administrative Order 5235] Wisconsin 16U Douglas------— $400,000 Alabama K entucky [ sea l] A nc h er N e l s e n , LOAN ANNOUNCEMENT LOAN ANNOUNCEMENT Administrator. D ecem ber 22, 1955. D ecember 19, 1955. [F. R, Doc. 56-456; Filed, Jan. 18, 1956; Pursuant to the provisions of the 8:55 a. m.] Pursuant to the provisions of the Rural Rural Electrification Act of 1936. as Electrification Act of 1936, as amended, amended, a loan contract bearing the a loan contract bearing the following following designation has been signed on designation has been signed on behalf of the Government acting through the behalf of the Government acting [Administrative Order 5232] through the Administrator of the Rural Administrator of the Rural Electrifica Electrification Administration: I ow a tion Administration: Loan designation: Amount LOAN ANNOUNCEMENT Loan designation: Amount Alabama 30L Autauga------$950, 000 Kentucky 54AA Wayne______$790,000 D ecember 22, 1955. [SEAL] An CHER NeLSEN, [ sea l] A nch er N elsen, Administrator. Pursuant to the provisions of the Rural Administrator. Electrification Act of 1936, as amended, [F. R. Doc. 56-453; Filed, Jan. 18, 1956; [F. R. Doc. 56-460; FUed, Jan. 18, 1956; a loan contract bearing the following 8:55 a. m.] 8:55 a. m.] designation has been signed on behalf of the Government acting through the Administrator of the Rural Electrifica [Administrative Order 5229] tion Administration: [Administrative Order 5236] PENNSYLVANIA Loan designation: Amount N orth C arolina Iowa 39K Benton______— $338,000 LOAN ANNOUNCEMENT LOAN ANNOUNCEMENT [ seal] A nc h er N e l s e n , D ecember 19, 1955. Administrator. D ecember 22, 1955. Pursuant to thé provisions of the Pursuant to the provisions of the Rural Rural Electrification Act of 1936, as [F. R. Doc. 56-457; Filed, Jan. 18, 1956; Electrification Act of 1936, as amended, a amended, a loan contract bearing the 8:55 a .m.] loan contract bearing the following des following designation has been signed ignation has been signed on behalf of the on behalf of the Government acting Government acting through the Admin through the Administrator of the Rural istrator of the Rural Electrification Ad Electrification Administration: [Administrative Order 5233] ministration: Loan designation: Amount T exas Loan designation: Amount Pennsylvania 24L Bedford._— __ $255, 000 North Carolina 63F Hyde------$25,000 LOAN ANNOUNCEMENT [SEAL] ANCHER NELSEN, [ sea l] A n c h er N elsen, Administrator. D ecem ber 22, 1955. Administrator. [F. R. Doc. 56-454; Filed, Jan. 18, 4956; Pursuant to the provisions of the Rural [F. R. Doc. 56-461; Filed, Jan. 18, 1956; 8:55 a. m.] Electrification Act of 1936, as amended, 8:56 a. m.] a loan contract bearing the following designation has been signed on behalf of [Administrative Order 5230] the Government acting through the Ad [Administrative Order 5237] ministrator of the Rural Electrification S o u t h C aro lina Administration : M aine LOAN ANNOUNCEMENT Loan designation: Amount LOAli ANNOUNCEMENT D ecem ber 21, 1955. Texas 99R Jones ______$890, 000 • D ecember 22, 1955. Pursuant to the provisions of the Pursuant to the provisions of the [ se a l ] A n c h e r N e l s e n , Rural Electrification Act of 1936, as Administrator. Rural Electrification Act of 1936, • » amended, a loan contract bearing the amended, a loan contract bearing following designation has been signed [F. R. Doc. 56-458; Filed, Jan. 18, 1956; following designation has been sumeu on behalf of the Government acting 8:55 a. m.] on behalf of the Government acting through the Administrator of the Rural through the Administrator of the Rw Electrification Administration: Electrification Administration: Loan designation: Amount Loan designation: ^JuTooO South Carolina 25N Berkeley.._$680, 000 [Administrative Order 5234] Maine 16G Swan’s Island------[SEAL] A nc h er N elsen, [ se a l ] A n ch er N e l s e n , T exas .Administrator. Administrator. LOAN ANNOUNCEMENT [F. R. Doc. 56-455; Filed, Jan. 18, 1956; [F. R. Doc. 56-462; Filed, Jan. 18, l956' 8:55 a. m.] D ecember 22, 1955, 8:56 a. m.] Pursuant to the provisions of the Rural Electrification Act of 1936, as amended, [Administrative Order 5231] a loan contract bearing the following [Administrative Order 5238] designation has been signed on behalf of W is c o n s in the Government acting through the Ad T exas LOAN ANNOUNCEMENT ministrator of the Rural Electrification LOAN ANNOUNCEMENT D ecem ber 29, 1955. D ecem ber 22, 1955. Administration: Pursuant to the provisions of the Rural Loan designation: Amount Pursuant to the provisions of ^ Electrification Act of 1936, as amended, Texas 83Y Fisher______$420,000 Rural Electrification Act of a loan contract bearing the following amended, a loan contract bear_.0n designation has been signed on behalf of [seal] Ancher Nelsen, following designation has been sigi ^ the Government acting through the Ad Administrator. behalf of the Government acting: wn ministrator of the Rural Electrification [F. R. Doc. 56-459; Filed, Jan. 18, 1956; the Administrator of the Rural El Administration : 8:55 a. m.J /»oHnr» AHministrofinTl! Thursday, January 19, 1956 FEDERAL REGISTER 413 Loan denignation r Amount a loan contract bearing the following Tariff: Supplement 54 to Agent Prue- Texas 47V Deaf Smith______$690,000 designation has been signed on behalf ter’s I. C. C. No. A-4038. [seal] Ancher N elsen, of the Government acting through the FSA No. 31524: Grain and grain prod Administrator. Administrator of the Rural Electrifica ucts in Western Trunk Line Territory. [P. R. Doc. 56-463; Filed, Jan. 18, 1956; tion Administration: Filed by W. J. Prueter, Agent, for inter 8:56 a. m.] Loan designation: Amount ested rail carriers. Rates on grain, grain New Jersey 6L Sussex______$245, 000 products, seeds, and related articles, car loads from Kansas City, Mo.-Kans., Chi [seal] Ancher Nelsen, [Administrative Order 5239] cago, Peoria, and East St. Louis, 111., and Administrator. St. Louis, Mo., to points in Illinois, In Wyoming [F. R. Doc. 56-466; Filed, Jan. 18, 1956; diana, and Missouri, including Kansas LOAN ANNOUNCEMENT 8:56 a. m.] City, Mo.-Kans. Grounds for relief: Circuitous routes. D ecember 29, 1955. / Tariffs: Supplement 87 to Agent Prue- Pursuant to the provisions of the Ru ter’s I. C. C. $To. A3866; Supplement 5 to ral Electrification Act of 1936, as amend [Administrative Order 5242] Kansas City Southern Railway I. C. C. ed, a loan contract bearing the following Ohio No. 5321. designation has been signed on behalf of FSA No. 31525: Fertilizier solutions the Government acting through the Ad LOAN ANNOUNCEMENT from South Point, Ohio, to Louisville, Ky. ministrator of the Rural Electrification Filed by Norfolk and Western Railway Administration: D ecember 30, 1955. Pursuant to the provisions of the Company for itself and other carriers. Loan designation: Amount Rural Electrification Act of 1936, as Rates on nitrogen fertilizer solution and Wyoming 10L Platte______$345, 000 amended, a loan contract bearing the fertilizer ammoniating solution, tank- [seal] Ancher N elsen, following designation has been signed on car loads from South Point, Ohio to Administrator. behalf of the Government acting through Louisville, Ky. [F. R. Doc. 56-464; Filed, Jan. 18, 1956; the Administrator of the Rural Electrifi Grounds for relief: Market competi 8:56 a. m.] cation Administration: tion and circuity. Tariff: Supplement 22 to Norfolk and Loan designation: Amount Western Railway Company I. C. C. No. Ohio 74 S Butler______$250, 000 [Administrative Order 5240] 9548. [ seal] Ancher N elsen, „ FSA No. 31526: Vegetable oils from Louisiana Administrator. Mississippi points to Memphis, Tenn. Filed by R. E. Boyle, Jr., Agent, for in LOAN ANNOUNCEMENT [F. R. Doc. 56-467; Filed, Jan. 18, 1956; 8:56 a. m.] terested rail carriers. Rates on vege D ecember 29, 1955. table oils, carloads from Greenville, Pursuant to the provisions of the Rural Greenwood, Indianola, and Moorhead, Electrification Act of 1936, as amended, INTERSTATE COMMERCE Miss., to Memphis, Tenn. a loan contract bearing the following Grounds for relief: Circuitous routes. designation has been signed on behalf COMMISSION Tariff: Supplement 43 to Agent C. A. of the Government acting through the F ourth S ection Applications for R elief Spaninger’s I. C. C. No. 1411. Administrator of the Rural Electrifica FSA No. 31527: Citrus pomace final tion Administration: J anuary 16,1956. syrup—Florida to the East. Filed by Loan designation: Amount Protests to the granting of an appli R. E. Boyle, Jr., Agent, for interested rail Louisiana 26 “E” L. R. E. C___ $1, 565, 000 cation must be prepared in accordance carriers. Rates on citrus pomace final with Rule 40 of the General Rules of syrup, carloads from Bradenton, Dell- [Seal] Ancher Nelsen, Practice (49 CFR 1.40) and filed within wood, Frostproof, Plymouth, Tampa, and Administrator. 15 days from the date of publication of Wauchula, Fla., to specified destinations [F. R. Doc. 56-465; Filed, Jan. 18, 1956; this notice in the F ederal R egister. in Connecticut, District of Columbia, 8:56 a. m.] Maine/ Maryland, Massachusetts, New LO&G-AND-SHORT HAUL Hampshire, New Jersey, New York, Ohio, FSA No. 31523: Hoisting machinery be Pennsylvania and West Virginia. [Administrative Order 5241] tween Twin Cities and Kansas City, Mo. Grounds for relief: Short-line dis Filed by W. J. Prueter, agent, for inter tance formula, grouping, and,circuity. N ew J ersey ested rail carriers. Rates on hoisting By the Commission. loan announcement machinery, carloads, between Minneap olis, Minnesota Transfer, and St. Paul, [ seal] Harold D. M cCoy, D ecember 30, 1955. Minn., on the one hand, and Kansas City, Secretary. Pursuant to the provisions of the Rural Mo., on the other. [F. R. Doc. 56-414; Filed, Jan. 18, 1956; ectriflcation Act of 1936, as amended, Grounds for relief: Circuitous routes. 8:49 a. m.]