/ S x FEDERAL REGISTER

1934 VOLUME 18 \ NUMBER 152 * ODinto^ Washington, Wednesday, August 5, 1953

TITLE 3— THE PRESIDENT in appropriate observance of this day CONTENTS throughout our country. PROCLAMATION 3026 , IN WITNESS WHEREOF, I have here­ THE PRESIDENT U n it e d N a t io n s D a y , 1953 unto set my hand and caused the Seal of the United States of America to be Proclamation Pa®e BY THE PRESIDENT OP THE UNITED STATES affixed. United Nations Day, 1953______4589 OF AMERICA DONE at the City of Washington this EXECUTIVE AGENCIES A PROCLAMATION 31st day of July in the year of our Lord nineteen hundred and fifty- Agriculture Department WHEREAS the United Nations pro­ [ s e a l ] three, and of the Independence See also Production and Marketing vides the peoples of the world with an of the United States of America Administration. organization through which interna­ the one hundred and seventy-eighth. Rules and regulations: tional differences in the economic and Conservation, national agricul­ political fields can be peacefully resolved; D w ig h t D . E is e n h o w e r and ___ tural, 1953; conservation By the President: practices and maximum rates WHEREAS the need for the United of assistance______4592 Nations is greater than ever before, and J o h n F oster D u l l e s , its success depends on the extent to Secretary of State. Alien Property Office which its members give it support; and [P. R. Doc. 53-6885; Filed, Aug. 3, 1953; Notices: WHEREAS the expression of our faith 5:16 p. m.] Vested property, intention to in and support of the United Nations will return: encourage and bring hope to the peoples Bohm, Franz and Theresia___ 4614 of other nations who are also working TITLE 7— AGRICULTURE Brudal, Holger______4615 toward a true peace with freedom and Compagnie Generale d’Elec- justice for all; and Chapter IX— Production and Mar­ tro Céramique______4615 WHEREAS the General Assembly of keting Administration (Marketing Haas, Elizabeth, et al,______4615 the United Nations has declared that Agreements and Orders), Depart­ Nyegaard & Co., A/S______4614 October 24, the anniversary of the entry ment of Agriculture Serafini, Fiuggina and Gina__4614 Slaby, Thomas, et al______4615 into force of the United Nations Charter, [Docket No. AO-179-A111 should be dedicated each year to the dis­ Thon, Christian Marius______4614 semination of information concerning P art 975— M i l k i n t h e C l e v e l a n d , O h io , Tremi, Rosina, et al.; révoca­ the aims and accomplishments of the M a r k e t in g A rea tion______4615 United Nations: ORDER AMENDING ORDER, AS AMENDED, Army Department NOW, THEREFORE, I, DWIGHT D. REGULATING HANDLING See Engineers Corps. EISENHOWER, President of the United States of America, do hereby urge the § 975.0 Findings and determinations. Civil Aeronautics Board citizens of this Nation to observe Satur­ The findings and determinations here­ Proposed rule making: day, October 24, 1953, as United Nations inafter set forth are supplementary and Certification and operation rules Day by sending messages to friends, rela­ in addition to the findings and determi­ for scheduled air carrier oper­ tives, and associates in other member nations previously made in connection ations outside continental with the issuance of the aforesaid order countries of the United Nations, by learn­ limits of U. S.; special civil and each of the previously issued amend­ air regulation; flight time lim­ ing more about the United Nations and ments thereto; and dll of said previous itations for pilots not regu­ its members, and by expressing their con­ findings and determinations are hereby larly assigned to one type of fidence in the United Nations, their ratified and affirmed, except insofar as crew______4606 friendship for other peoples, and their such findings and determinations may Rules and regulations: faith in the ultimate triumph of peace be in conflict with the findings and de­ Dealers’ aircraft registration and justice through the efforts of men of terminations set forth herein. certificates; area of validity 4597 good will. (a) Findings upon the basis of the Special civil air regulation ; dele­ I also call upon the officials of the hearing record. Pursuant to the provi­ gation of authority to Admin­ Federal, State, and local Governments, sions of the Agricultural Marketing istrator to permit air carriers the United States Committee for United Agreement Act of 1937, as amended (7 under contract to military Nations Day, representatives of civic, U. S. C. 601 et seq.), and the applicable services* to deviate from civil air regulations______4595 educational, and religious organizations, rules of practice and procedure, as amended, governing the formulation of Tariffs of air carriers; persons agencies of the press, radio, television, to whom free and reduced rate motion pictures, and other communica­ marketing agreements and marketing transportation may be fur­ tions media, and all citizens to cooperate (Continued on p. 4591) nished______4596 4589 4590 RULES AND REGULATIONS

CONTENTS— Continued CONTENTS— Continued Commerce Department PaS® Federal Trade Commission Pase FEDERA^REGISTER See Federal Maritime Board; In­ Rules and regulations: \ 1934 ternational Trade Office. Cease and desist orders: Cauger, A. V., Service, Inc___ 4593 Customs Bureau Champion Spark Plug Co----- 4594 Notices: Electric Auto-Lite Co______4595 Published daily, except Sundays, Mondays, Catalysts, certain; tariff classi­ General Motors Corp. and AC and days following official Federal holidays, fication------;------4607 by the Federal Register Division, National Spark Plug Co------4594 Archives and Records Service, General Serv­ Defense Department Illinois Sewing Machine Dis­ ices Administration, pursuant to the au­ See Engineers Corps. tributors et al______— 4592 thority contained in the Federal Register Act, approved July 26, 1935 (49 Stat. 500, as Defense Mobilization Office Food and Drug Administration amended; 44 U. S. C., ch. 8B ) , under regula­ Rules and regulations: Proposed rule making : tions prescribed by the Administrative Com­ Establishing Defense Rental Cacao products; definitions and mittee of the Federal Register, approved by Areas Division______4597 standards of identity; notice the President. Distribution is made only by of hearing______4606 the Superintendent of Documents, Govern­ Revocation of DMO 18 and re­ ment Printing Office, Washington 25, D. C. designation of amendments Health, Education, and Welfare The regulatory material appearing herein thereto______4597 Department is keyed to the Code of Federal Regulations, Engineers Corps See Food and Drug Administra­ which is published, under 50 titles, pursuant tion. , to section 11 of the Federal Register Act, as Rules and regulations: amended June 19, 1937. Danger zone regulations; Lake Housing and Home Finance The Federal R egister will be furnished by Erie, west end______4598 Agency mail to subscribers, free of postage, for $1.50 per month or $15.00 per year, payable in Federal Civil Defense Ad­ Notices: Public Housing Commissioner; advance. The charge for individual copies ministration (minimrfti 154) varies in proportion to the amendment of delegations of size of the issue. Remit check or money Notices : authority to exercise certain order, made payable to the Superintendent Agriculture Secretary or his responsibilities vested in HHF of Documents, directly to the Government designee; delegation of certi­ Administrator under various Printing Office, Washington 25, D. C. fying authority for counties statutes______4612 There are no restrictions on the republica­ or parishes in areas deter­ tion of material appearing in the Federal mined by President to be Interior Department R egister. major disaster areas------4609 See Land Management Bureau. Federal Communications Com­ Internal Revenue Service mission Proposed rule making: Estate tax------4599 CFR SUPPLEMENTS Notices: G ift tax under chapter 4 of Hearings, etc.: Internal Revenue Code, as Southern Broadcasting Co., (For use during 1953) amended______4602 Inc., and Southern Enter- The following Supplement is now prises______4610 International Trade Office available: Southwestern Bell Telephone Notices: Co______4610 Goldberg, Charles, and Ernest L. Title 14; Parts 1—399 (Revised Syracuse Broadcasting Corp_ 4610 Jacobs; revocation of licenses W KRG-TV, Inc., and Mobile and denial of export privi­ Book) ($6.00) Television Corp______- 4609 leges ______— 4607 U. S. standard broadcast sta­ Previously announced: Title 3 ($1.75); Interstate Commerce Commis­ tions; list of changes, proposed sion Titles 4 -5 ($0.55); Title 6 ($1.50); Title 7: changes and corrections in Parts 1-209 ($1.75), Parts 210-899 assignments______4611 Notices: ($2.25), Part 900—end (Revised Book) Hearings, etc. ($6.00); Title 8 (Revised Book) ($1.75); Federal Maritime Board Gypsum backing board be­ Title 9 ($0.40); Titles 10-13 ($0.40); Rules and regulations: tween points in Texas_____ 4613 Title 14: Part 400—end (Revised Book) Practice and procedure before Phosphate rock from Florida ($3.75); Title 15 ($0.75); Title 16 ($0.65); Board and Maritime Adminis­ to South------4613 Title 17 ($0.35); Title 18 ($0.35); Title tration; miscellaneous amend- Justice Department ments______*______4598 19 ($0.45); Title 20 ($0.60); Title 21 \ See Alien Property Office. ($1.25); Titles 2 2 -2 3 ($0.65); Title 24 Federal Power Commission Land Management Bureau ($0.65); Title 25 ($0.40); Title 26: Parts Notices: Rules and regulations: 80-169 ($0.40), Parts 170-182 ($0.65), Hearings, etc.: New Mexico; exclusion of cer­ Parts 183-299 ($1.75); Title 26: Part Cities Service Co______4612 tain lands from Gila National 300-end, Title 27 ($0.60); Titles 2 8 -2 9 K a n s a s-Colorado Utilities, Forest______4598 ($1.00); Titles 30-31 ($0.65); Title 32: Inc______4611 Virginia Electric and Power Maritime Administration Parts 1-699 ($0.75), Part 700-end See Federal Maritime Board. ($0.75); Title 33 ($0.70); Titles 3 5 -3 7 Co______4612 ($0.55); Title 38 ($1.50); Title 39 ($1.00); Wisconsin Michigan Power Post Office Department Titles 4 0 -4 2 ($0.45); Title 43 ($1.50); Co. and Kingsford Chemi­ Notices : Titles 4 4 -4 5 ($0.60); Title 46: Parts cal Co______4612 Guam; resumption of c. o. d . service_____,______4607 1—145 (Revised Book) ($5.00), Part 1 4 6 - Federal Reserve System end ($2.00); Titles 4 7-48 ($2.00); Title Rules and regulations: Production and Marketing Ad­ 49: Parts 1-7 0 ($0.50), Parts 7 1 -9 0 Credit by brokers, dealers, and ministration ($0.45), Parts 9 1-164 ($0.401, Part 1 6 5- members of national securities Proposed rule making: end ($0.55); Title 50 ($0.45) exchanges; assistance by Fed­ Milk handling: eral credit union to its mem­ Chicago, 111., marketing area_ 4606 Order from bers ______4592 New York metropolitan mar«- Superintendent of Documents, Government Loans by banks for purpose of keting area______4605 Printing Office, Washington 25, D. C. purchasing or carrying regis­ Rules and regulations: tered stocks; Federal credit Milk handling in Cleveland, unions______4592 Ohio______4589 Wednesday, August 5, 1953 FEDERAL REGISTER 4591

CONTENTS— Continued CODIFICATION GUIDE— Con. ing or shipping milk covered by this order amending the order, as amended,) Securities and Exchange Com- Pa6* Title 43 * Page of more than 50 percent of the volume mission Chapter I: of the milk covered by this order amend­ Notices: Appendix (Public land orders) : ing the order, as amended, which is mar­ National Securities Series and 906______4598 keted within the said marketing area, refused or failed to sign the proposed National Securities & Re­ Title 46 search Corp.; filing for order marketing agreement regulating the Chapter II: handling of milk in the said marketing permitting reduced public Part 201______4598 offering prices on quantity area, and it is hereby further determined purchases of company shares- 4614 that: Rules and regulations: orders (7 CFR Part 900), a public hear­ ( 1 ) The refusal or failure of such han­ Conduct of members and em­ ing was held upon, certain proposed dlers to sign said marketing agreement ployees and former members . amendments to the tentative marketing tends to prevent the effectuation of the and employees of the Com­ agreement and to the order, as amended, declared policy of the act; mission; outside or private regulating the handling of milk in the (2) The issuance of this order amend­ employment______4597 Cleveland, Ohio, marketing area. Upon ing the order, as amended, is the only practical means, pursuant to the de­ Treasury Department the basis of the evidence introduced at such hearing and the record thereof, it clared policy of the act, of advancing the See Customs Bureau; Internal is found that: interests of producers of milk which is Revenue Service. (1) The said order, as amended and produced for sale in the said marketing as hereby further amended, and all of area; and CODIFICATION GUIDE the terms and conditions thereof, will (3) The issuance of this order amend­ tend to effectuate the declared policy of ing the order, as amended, is approved A numerical list of the parts of the Code the act. or favored by at least two-thirds of the of Federal Regulations affected by documents (2) The parity prices of milk as de­ producers, who during the determined published in this issue. Proposed rules, as representative period (April 1953), were opposed to final actions, are identified as termined pursuant to section 2 of the such. act are not reasonable in view of the engaged in the production of milk for price of feeds, available supplies of feeds, sale in the said marketing area. Title 3 Page and other economic conditions which af­ Order relative to handling. It is Chapter I (Proclamations) : fect market supply and demand for milk therefore ordered, that on and after the 3026______4589 in the said marketing area, and the mini­ effective date hereof, the handling of Title 7 mum prices specified in the order, as milk in the Cleveland, Ohio, marketing Chapter IX : amended, and as hereby further area shall be in conformity to and in Part 927 (proposed) ______4605 amended, are such prices as will reflect compliance with the terms and condi­ Part 941 (proposed)______4606 the aforesaid factors, insure a sufficient tions of the aforesaid order, as amended, Part 975______4589 quantity of pure and wholesome milk and and as hereby further amended, and the Chapter XI: be in the public interest; and aforesaid order, as amended, is hereby Part 1101______4592 (3) The said order, as amended, and further amended as follows: as hereby further amended, regulates the 1. In § 975.61 (a) (1) (ii) change the Title 12 handling of milk in the same manner as tabulated schedule of standard utiliza­ Chapter II: and is applicable only to persons in the tion percentages to read as follows: Part 220______4592 respective classes of industrial and com­ Part 221______4592 Standard mercial activity specified in a marketing Month for which the price utilization Title 14 agreement upon which a hearing has is being computed: percentage Chapter I: been held. Janu ary------119 Part 40______4595 (b) Additional findings. It is hereby F eb ru ary ______123 Part 41______4595 found and determined that good cause M arch ______(.______128 Proposed rules______4606 exists for making this amendatory order April ------135 effective on 1953. Such action is neces­ M a y ------146 Part 42______4595 J u n e ______162 Part 45______4595 sary in the public interest in order to J u ly ------168 Part 6J______4595 reflect current marketing conditions and August ____ 157 Part 223______4596 to facilitate the orderly marketing of Septem ber______144 Chapter II: milk produced for the Cleveland, Ohio, O cto b er______135 Part 502______4597 marketing area. Accordingly, any fur­ N ovem ber______130 ther delay in the effective date of this December______123 Title 16 order will seriously threaten the orderly 2. In § 975.61 (a) (1) (iii) change the Chapter I: marketing of milk in the marketing area. Part 3 (5 documents)_____ 4592-4595 tabulated schedule of amounts to read as The provisions of this amendatory order follows: Title 17 are well known to handlers and pro­ Amount of supply- Chapter II: ducers, the public hearing having been demand adjustment Part 203______^______*______4597 convened on June 17, 1953, a recom­ Deviation percentages (cents) mended decision having been issued on + 13 or over______—25 Title 21 July 7, 1953 for the purpose of inviting + 10 o r +1 1 ------1 9 Chapter I: exceptions, and a decision containing the + 7 or + 8 ------— 13 Part 14 (proposed)______4606 + 4 or + 5 ______—T terms and provisions of the order having + 2 to —2______0 Title 26 been issued on July 27, 1953. Reason­ —4 or —5______+ 7 Chapter I: able time under the circumstances has — 7 or —8------+13 Part 81 (proposed)______4599 been afforded persons affected to pre­ — 10 or — 11______+19 Part 86 (proposed)______:___ 4602 pare for its effective date. Therefore, it — 13 or below______+25 would be contrary to the public interest (Sec. 5, 49 Stat. 753, as amended; 7 U. S. C. Title 32A to delay the effective date of this amend­ and Sup. 608) Chapter I (ODM) : ment for 30 days after its publication in Issued at Washington, D. C. this 30th DMO 18______4597 the F ederal R e g ister . (See section 4 DMO 18A______4597 (c) Administrative Procedure Act, Public day of July 1953, to be effective on and after the 1st day of August 1953. DMO 18B______4597 Law 404, 79th Congress, 60 Stat. 237.) DMO 29______4597 (c) Determinations. It is hereby de­ [ s e a l ] T r ue D. M or se, Title 33 termined that handlers (excluding co­ Acting Secretary of Agriculture. Chapter II: operative associations or producers who [F. R. Doc. 53-6808; Filed, Aug. 4, 1953; Part 204______4598 are not engaged in processing, distribut­ 8:48 a. m.l 4592 RULES AND REGULATIONS

Chapter XI— Agricultural Conserva­ Federal credit union to aid its members stated that the part rather clearly would tion Program, Department of Agri­ in purchasing stock of a corporation not apply if there appeared to be nothing whose subsidiary apparently was the em­ other than loans by the credit union to culture ployer of all the credit union’s members. its members to finance purchases made [1061 (53)-l, Supp. 41 (b) From the information submitted, directly by them of stock of the parent the plan appeared to contemplate that corporation of the employer of the mem­ P art 1101—N a t io n a l A gricultural the Federal credit union would accept ber-borrowers. The additional fact that C onservation orders from its members for registered the credit union, as agent, would pur­ S u b pa r t — 1953 common stock of the parent corporation chase such stock for its members (even CONSERVATION PRACTICES AND MAXIMUM in multiples of 5 shares; that whenever though all such purchases might not be RATES OF ASSISTANCE orders had been so received for a total financed by credit union loans) was not of 100 shares, the credit union, as agent viewed by the Board as sufficient to make Pursuant to the authority vested in the for such members, would execute the the regulation applicable where, as from Secretary of Agriculture under sections orders through a brokerage firm with the facts presented, it did not appear 7-17 of the Soil Conservation and Domes­ membership on a national securities ex­ that the credit union in any case was to tic Allotment Act, as amended, the 1953 change; that the brokerage firm would make any charge or receive any compen­ National Agricultural Conservation Pro­ deliver certificates for the stock, regis­ sation for assisting in such purchases or gram, issued July 28,1952 (17 F. R. 6995), tered in the names of the individual that the credit union otherwise was en­ as amended July 28, 1952 (17 F. R. 7110), purchasers, to the credit union against gaged in securities activities. However, October 30, 1952 (17 F. R. 9921), and payment by the credit union; that the the Board stated that matters of this July 24, 1953 (18 F. R. 4419), is further credit union would prorate the total kind must be examined closely for any amended as follows: amount so paid, including the brokerage variations that might suggest the inap­ Section 1101.412 Conservation prac­ fee, among the individual purchasers ac­ plicability of the foregoing. tices and maximum rates of assistance cording to the number of shares pur­ (Sec. 11, 38 Stat. 262; 12 U. S. C. 248, Inter­ is amended by adding the following new chased by them; and that a savings in prets or applies secs. 3, 7, 8, 17, 23, 48 Stat. paragraph at the end thereof: brokerage fee resulting from the 100-lot 882, 886, 888, 897, 901, as amended; 15 U. S. O. (h) Notwithstanding other provisions purchases would be passed on by the 78c, 78g, 78h, 78q, 78w) of this section, in counties designated in credit union to the individual purchasers B oard o f G overnors o f t h e June 1953, or thereafter, under Public of the stock. However, amounts of the F ederal R eserve S y s t e m , Law 875, 81st Congress, as disaster coun­ stock less than 100 shares would be pur­ chased by the credit union through [ s e a l ] S. R. C a r p e n t e r , ties because of drought, and in which the Secretary. Chief, AGP, determines, upon recom­ the brokerage firm for any members will­ mendation of the State committee and ing to forego such savings. [F. R. Doc. 53-6809; Filed, Aug. 4, 1953; designated representatives of the Soil (c) It appeared further that the Fed­ 8:48 a. m.] Conservation Service and Forest Service eral credit union members for whom at the State level, that a serious wind stock was so purchased would reimburse erosion hazard exists, the county com­ the credit union (1) by cash payment, mittee, with the approval of the State (2) by the proceeds of withdrawn shares [Reg. U ] committee, may, following such determi­ of the credit union, (3) by the proceeds P art 221—L o a n s b y B a n k s for t h e P ur­ nation, approve emergency practices of an installment loan from the credit po se o f P u r c h a s in g or C a r r y in g R egis­ needed for soil protection in the critical union collateraled by the stock pur­ tered S to c k s wind erosion area, provided the addi­ chased, or (4) by a combination of two tional approvals so issued shall not exceed or more of the above methods. To assist federal credit u n io n s the collection of any such loan, the em­ that part of the county allocation which Section 221.104 is added as follows: the county committee determines will ployer of the credit union members would not be earned by the performance of provide payroll deductions. Apparently, § 221.104 Federal credit unions. For previously approved practices. sales by the credit union of any of the text of this interpretation, see § 220.1101 stock purchased by one of its members of this subchapter. (Sec. 4, 49 Stat. 164; 16 U. S. C. 590d. Inter­ would occur only in satisfaction of a prets or applies secs. 7-17, 49 Stat. 1148, as delinquent loan balance. In no case did (Sec. 11, 38 Stat. 262; 12 U. S. C. 248. In ­ amended; 16 U. S. C. 590g-590q) terprets or applies secs. 3, 7, 17, 23, 48 Stat. it appear that the credit union would 882, 886, 897, 901, as amended; 15 U. S. O. 78c, Done at Washington, D. C., this 30th make a charge for arranging the execu­ 78g, 78q, 78w) day of July 1953. tion of transactions in the stock for its members. B oard o f G o ver n o r s o f t h e [ s e a l ] T r u e D . M orse, F ederal R eserve S y s t e m , Acting Secretary of Agriculture. (d) The Board was of the view that, from the facts as presented, it did not ap­ [ s e a l ] S. R. C a r p e n t e r ,, [F. R. Doc. 53-6806; Filed, Aug. 4, 1953; pear that the Federal credit union should Secretary. 8:47 a. m.] be regarded as the type of institution to [F. R. Doc. 53-6810; Filed, Aug. 4, 1953; which Part 221, of this subchapter in its 8:48 a. m.] present form, applied. TITLE 12-—BANKS AND (e) With respect to this part, the ques­ BANKING tion was whether the activities of the TITLE 16— COMMERCIAL Federal credit union under the proposal, Chapter II— Federal Reserve System or otherwise, might be such as to bring PRACTICES it within the meaning of the terms Chapter I— Federal Trade Commission Subchapter A— Board of Governors of the “broker” or “dealer” as used in the part Federal Reserve System and the Securities Exchange Act of 1934. [Docket 6082] [Reg. T ] The Board observed that this, of course, P art 3— D ig e st o f C ease a n d D e s is t P art 220— C redit b y B r o k er s, D ea le r s, was a question of fact that necessarily O rders depended upon the circumstances of the a n d M em ber s o f N a t io n a l S e c u r it ie s ILLINOIS SEWING MACHINE DISTRIBUTORS E x c h a n g e s particular case, including the manner in which the arrangement in question might ET AL. a s sist a n c e b y federal credit u n io n to be carried out in practice. Subpart—Advertising falsely and mis­ ITS MEMBERS (f) On the basis of the information leadingly: § 3.15 Business status, advant­ Section 220.110 is added to read as submitted, however, it did not appear to ages, or connections—Retailer as whole­ follows: the Board that the Federal credit union saler, jobber, or factory distributor; should be regarded as being subject to § 3.200 Sample, offer or order conform­ § 220.110 Assistance by Federal credit this part as a “broker or dealer who ance; § 3.235 Source or origin— Maker—■ union to its members, (a) An inquiry transacts a business in securities through- Place—Imported products or parts as was presented recently concerning the the medium of” a member firm solely be­ application of this part or part 221 of cause of its activities as contemplated by 1 See F. R. Doc. 53-6809, Part 220 of this this subchapter, to a plan proposed by a the proposal in question. The Board subchapter, supra. Wednesday, August 5, 1953 - FEDERAL REGISTER 4593

domestic. Subpart—Appropriating trade The consent settlement tendered by [Docket 5945] name or mark wrongfully: § 3.295 Ap­ the parties in this proceeding, a copy of P art 3— D ig e st o f C ease an d D e s is t propriating trade name or mark wrong­ which is served herewith, was accepted O rders fully—Product. Subpart— Misbranding by the Commission on July 8, 1953, and or mislabeling: § 3.1325 Source or ori­ ordered entered of record as the Com­ A. V. CATTGER SERVICE, INC. —Maker or seller—Place gin — Imported mission’s findings as to the facts,1 con­ Subpart— Dealing on exclusive and Sub- product or parts as domestic. clusion,1 and order1 in disposition of this tying basis: § 3.670 Dealing on exclusive part— Neglecting, unfairly or deceptively, proceeding. and tying basis. In connection with the to make material disclosure: § 3.1860 Im ­ The time for filing report of compli­ sale, leasing, or distribution of commer­ ported product or parts as domestic. ance pursuant to the aforesaid order cial or advertising films in commerce, en­ Subpart— Offering unfair, improper and runs from the date of service hereof. tering into contracts with motion picture

deceptive inducements to purchase or I t is ordered, That the respondent exhibitors for the exclusive privilege of deal: § 3.2060 Sample, offer or order Rodney Distributors, Inc., a corporation, exhibiting commercial or advertising conformance. Subpart— Passing off: doing business" under its own or any films in theaters owned, controlled, or § 3.2105 Passing off. Subpart—Simu­ other name, and its officers, and respond­ operated by such exhibitors when the lating competitor or another or product ents Seymour Ratner, Irwin Ratner, term of such contracts extends for a thereof: § 3.2245 Trade name of com­ Harold Ratner and Joseph Wandel, in­ period in excess of one year, or continu­ petitor’s or other’s product. Subpart— dividually and as officers of said corpora­ ing in operation or effect any exclusive Vsing misleading name— Goods: § 3.2345 tion, and respondents’ representatives, screening provision in existing contracts Source or origin—Maker—Place—For­ agents and employees, directly or when the unexpired term of such pro­ eign product or parts as doinestic—Ven­ through any corporate or other device, vision extends for a period of more than dor: § 3.2460 Retailer as wholesaler, in Connection with the offering for sale, a year from the date of the service of jobber or distributor. In connection sale or distribution of sewing machines the order; prohibited. with the offering for sale, sale, and dis­ in commerce, as “commerce” is defined tribution of sewing machines in com­ (Sec. 6, 38 Stat. 722; 15 U. S. C. 46. Interpret in the Federal Trade Commission Act, or apply sec. 5, 38 Stat. 719, as amended; 15 merce, (1) offering for sale, selling, or do forthwith cease and desist from: U. S. C. 45) [Cease and desist order, A. V. distributing foreign-made sewing ma­ 1. Offering for sale, selling or distrib­ Cauger Service, Inc., Independence, Mo., chines, or sewing machines of which uting foreign-made sewing machines,,or Docket 5945, July 8, 1953] foreign-made heads are a part, without sewing machines of which foreign-made This proceeding was instituted by com­ clearly and conspicuously disclosing on heads are a part, without clearly and plaint which charged respondent with the heads the country of origin thereof, conspicuously disclosing on the heads the use of unfair methods of competition in such a manner that it cannot readily the country of origin thereof, in such a and unfair acts and practices in violation be hidden or obliterated; <2) using the manner that it cannot readily be hidden of the provisions of the Federal Trade word “Illinois” , or any simulation or obliterated. Commission Act. thereof, as a brand or trade name, or 2. Using the word “Illinois,” or any It was disposed of, as announced by as a part thereof, to designate, de­ simulation thereof, as a brand or trade the Commission's “Notice” , dated July scribe or refer to respondents’ sewing name, or as. a part thereof, to designate, 13, 1953, through the consent settlement machines, or representing through the describe or refer to their sewing ma­ procedure provided in Rule V of the Com­ use of any other word or words, or in any chines, or representing through the use mission’s Rules of Practice as follows: other manner, that said sewing machines of any other word or words, or in any The consent settlement tendered by the are manufactured by anyone other than other manner, that said sewing machines parties in this proceeding, a copy of the actual manufacturer; (3) using the are manufactured by anyone other than which is served herewith, was accepted word “Distributor” , or any simulation the actual manufacturer. by the Commission on July 8, 1953, and thereof, as a part of a corporate or trade 3. Using the word “Distributor,” or ordered entered of record as the Com­ name; or representing in any other man­ any simulation thereof, as a part of a mission’s findings as to the facts, con­ ner that said respondents are distribu­ corporate or trade name; or representing clusion, and order in disposition of this tors of the sewing machines sold by in any other manner that said respond­ proceeding. them; and (4) representing that certain ents are distributors of the sewing ma­ The time for filing report of compliance sewing machines are offered for sale chines sold by them. pursuant to the aforesaid order runs when such offer is not a bona fide offer 4. Representing that certain sewing from the date of service hereof. to sell the machines so offered; pro­ machines are offered for sale when such Said order to cease and desist, thus hibited. offer is not a bona fide offer to sell the entered of record, following the findings (Sec. 6, 38 Stat. 722; 15 U. S. C. 46. Interpret machines so offered. as to the facts1 and conclusion,1 reads or apply sec. 5, 38 Stat. 719, as amended; 15 It is further ordered, Tljat the re­ as follows: XJ. S. C. 45) [Cease and desist order, Rodney spondents Rodney Distributors, Inc., a Distributors, Inc. (d. b. a. Illinois Sewing corporation, doing business under the I t is ordered, That the respondent, Machine Distributors) et al„ Chicago, 111., name of Illinois Sewing Machine Dis­ A. V. Cauger Service, Inc., a corporation, Docket 6082, July 8, 1953] tributors; and Seymour Ratner, Irwin and its officers, representatives, agents and employees, directly or through any In the Matter of Rodney Distributors, Ratner, Harold Ratner, and Joseph Wan­ del, individually and as officers .of said corporate or other device, in connection Inc., a Corporation, Doing Business with the sale, leasing or distribution of Under the Name of Illinois Sewing Ma­ corporation, shall, within sixty (60) days after service upon them of this order, commercial or advertising films in com­ chine Distributors; and Seymour Rat- merce, as “ commerce” is defined in the ner, Irwin Ratner, Harold Ratner, and file with the Commission a report in Federal Trade Commission Act, do forth­ Joseph Wandel, Individually and as writing, setting forth in detail the man­ with cease and desist from entering Officers of Said Corporation ner and form in which they have com­ plied with this order. into contracts with motion picture ex­ This proceeding was instituted by com­ hibitors for the exclusive privilege of plaint which charged respondents with The foregoing consent settlement is exhibiting commercial or advertising the use of unfair and deceptive acts and hereby accepted by the Federal Trade films in theaters owned, controlled or practice^ and unfair methods of compe­ Commission and ordered entered of rec­ operated by such exhibitors when the ord on this 8th day of July 1953. tition in commerce within the intent and term of such contracts extends for a meaning of the Federal Trade Commis­ Issued: July 13, 1953. period in excess on one year, or continu­ sion Act. ing in operation or effect any exclusive By direction of the Commission. screening provision in existing contracts It was disposed of, as announced by [ s e a l ] D . C. D a n ie l , when the unexpired term of such pro­ the Commission’s “Notice” , dated July Secretary. vision extends for a period of more than 13, 1953, through the consent settlement [F. R. Doc. 53-6815; Filed, Aug. 4. 1953; a year from the date of the service of procedure provided in Rule V of the 8:49 a. m.] this order. Commission’s Rules of Practice as fol­ I t is further ordered, That the re­ lows; 1 Filed as part of original document. spondent shall, within sixty (60) days 4594 RULES AND REGULATIONS after service upon it of this order, file other evidence in support of and in op­ service upon it of this order, file with the with the Commission a report in writing position to the allegations of said Commission a report, in writing, setting setting forth in detail the manner and amended complaint taken before a hear­ forth in detail the manner and form in form in which it has complied with this ing examiner of the Commission there­ which it has complied with this order. order. tofore duly designated by it, recom­ Issued: July 10, 1953. mended decision of the hearing examiner The foregoing consent settlement is with exceptions thereto, briefs of counsel By the Commission. hereby accepted by the Federal Trade supporting the complaint, counsel for the Commission and ordered entered of rec­ [ s e a l ] W m . P. G l e n d e n in g , Jr., respondent, and counsel for Kaiser- Acting Secretary. ord on this the 8th day of July 1953. Frazer Corporation, Hudson Motor Car Issued: July 13, 1953. Company, Nash-Kelvinator Corporation, [F. R. Doc. 53-6818; Filed, Aug. 4, 1953; 8:50 a. m.] By direction of the Commission. Packard Motor Car Company, and Willys-Overland Motors, Inc., as amici [ s e a l ] D. C. D a n ie l , curiae, and oral argument of opposing Secretary. counsel; and the Commission having is­ [Docket 5620] (F. R. Doc. 53-6816; Piled, Aug. 4 1953; sued its order disposing of the exceptions 8:49 a. m.] to the recommended decision and having P art 3— D ig est o f C ease a n d D e s is t made its findings as to the facts1 and O rders its conclusion1 that respondent has vio­ GENERAL MOTORS CORP. AND AC SPARK lated subsection (a) of section 2 of the PLUG CO. [Docket 3977J Clayton Act, as amended, and section 3 of said Clayton Act: Subpart— Dealing on exclusive and P art 3— D ig e st o f C ease an d D e s is t tying basis: § 3.670 Dealing on exclusive O rders I t is ordered, That respondent, Cham­ pion Spark Plug Company, a corpora­ and tying basis. Subpart—Discriminat­ c h a m p io n spa r k p l u g co. tion, and its officers, representatives, ing in price under section 2, Clayton Act, Subpart—Dealing on exclusive and ty­ agents, and employees, directly or as amended—Price Discrimination un­ ing basis: § 3.670 Dealing on exclusive through any corporate or other device, der 2 ( a ) : § 3.715 Charges and price and tying basis. Subpart—Discriminat­ in or in connection with the jsale, for re­ differentials; § 3.730 Customer classifi­ ing in price under section 2, Clayton Act, placement purposes, of spark plugs in cation. In or in connection with the as amended—Price Discrimination Un­ commerce, as “ commerce” is defined in sale, for replacement purposes, of spark der 2 ( a ) : § 3.715 Charges and price dif­ the Clayton Act, do forthwith cease and plugs, oil filters, oil filter cartridges, oil ferentials: § 3.730 Customer classifica­ desist from: filter elements, fuel pumps, fuel pump tion. In or in connection with the sale, (a) Discriminating, directly or indi­ part kits, speedometer cables, and re­ for replacement purposes, of spark plugs rectly, in the price of said spark plugs lated automotive parts and accessories in. commerce, (a) discriminating, di­ of like grade and quality: in commerce, (a) discriminating, di­ rectly or indirectly, in the price of said 1. By selling to any direct purchaser rectly or indirectly, in the price of said spark plugs of like grade and quality: (1) at net prices higher than the net prices products of like grade and quality: (1) By selling to any direct purchaser at net charged any other direct purchaser who by selling to any direct purchaser at prices higher than the net prices charged in fact competes in the resale and dis­ net prices higher than the net prices any other direct purchaser who in fact tribution of said spark plugs with the charged any other direct purchaser who competes in the resale and distribution purchaser paying the higher price. in fact competes in the resale and dis­ of said spark plugs with the purchaser 2. By selling to any indirect purchaser tribution of said products with the pur­ paying the higher price; (2) by selling at net prices higher than the net prices chaser paying the higher price; (2) by to any indirect purchaser at net prices charged any other direct or indirect pur­ selling to any indirect purchaser at net higher than the net prices charged any chaser who in fact competes in the re­ prices higher than the net prices other direct or indirect purchaser who sale and distribution of said spark plugs charged any other direct or indirect pur­ in fact competes in the resale and distri­ with the purchaser paying the higher chaser who in fact competes in the resale bution of said spark plugs with the pur­ price. and distribution of said products with chaser paying the higher price; (b) (b) Selling or making any contract or the purchaser paying the higher price; selling or making any contract or agree­ agreement for sale of spark plugs on the (b) selling or making any contract or ment for sale of spark plugs on the con­ condition, agreement, or understanding agreement for sale of said products on dition, agreement, or understanding that that the purchaser shall not use or deal the condition, agreement, or understand­ the purchaser shall not use or deal in or in or sell the products of a competitor ing that the purchaser shall not use or sell the products of a competitor or com­ or competitors of the respondent. deal in or sell the products of a com­ petitors of the respondent; (c) enforcing (c) Enforcing in any manner or con­ petitor or competitors of the respond­ in any manner or continuing in opera­ tinuing in operation or effect any condi­ ents; (c) enforcing in any manner or tion or effect any condition, agreement, tion, agreement, or understanding, in or continuing in operation or effect any or understanding, or in connection with in connection with any existing contract condition, agreement, or understanding, any existing contract or agreement for or agreement for sale of spark plugs, in or in connection with any existing sale of spark plugs, which condition, which condition, agreement, or under­ contract or agreement for sale of said agreement, or understanding is to the standing is to the effect that the pur­ products, which condition, agreement, or effect that the purchaser shall not use or chaser shall not use or deal in or sell the understanding is to the effect that the deal in or sell the products of a com­ products of a competitor or competitors purchaser shall not use or deal in or petitor or competitors of the respondent; of the respondent. sell the products of a competitor or com­ and (d) granting any rebate or fixing any (d) Granting any rebate or fixing any petitors of the respondents; and (d) price to any purchaser of spark plugs on price to any purchaser of spark plugs on granting any rebate or fixing any price the condition, agreement, or understand­ the condition, agreement, or under­ to any purchaser of said products on ing that such purchaser shall not use or standing that such purchaser shall not the condition, agreement, or under­ deal in the products of a competitor or use or deal in the products of a com­ standing that such purchaser shall not competitors of the respondent; prohib­ petitor or competitors of the respondent. use or deal in the products of a com­ ited. I t is further ordered, That the allega­ petitor or competitors of the respond­ (Sec. 6, 38 Stat. 722; 15 U. S. C. 46. Interpret tions of Counts II, IV, and Paragraphs ents; prohibited. or apply secs, 2 3, 38 Stat. 730, as amended, Five and Seven of Count I of the (Sec. 6, 38 Stat. 722; 15 U. S. C. 46. Interpret 731; 15 U. S. C. 13, 14) [Cease and desist amended complaint herein be, and they or apply secs. 2, 3, 38 Stat. 730, as amended, order, Champion Spark Plug Company, hereby are, dismissed. 731; 15 U. S. O. 13, 14) [Cease and desist Toledo, Ohio, Docket 3977, July 10, 1953] I t is further ordered, That the re­ order, General Motors Corporation et al., Detroit, Miclu, Docket 5620, July 10, 1953] This proceeding having been heard by spondent, Champion Spark Plug Com­ the Federal Trade Commission upon the pany, shall, within sixty (60) days after This proceeding having been heard by amended complaint of the Commission, the Federal Trade Commission upon the answer of the respondent, testimony and * Filed as part of original document. complaint of the Commission, answers Wednesday, August 5, 1953 FEDERAL REGISTER 4595

of the respondents, testimony and other equipment and (2) purchasers buying lated subsection (a) of section 2 of the evidence in support of and in opposition for original equipment and purchasers Clayton Act, as amended: to the allegations of said complaint buying for resale for replacement, and I t is ordered, That respondent, The taken before a hearing examiner of the the allegations in Counts II and IV of the Electric Auto-Lite Company, a corpora­ Commission theretofore duly designated complaint, be, and they hereby are, tion, and its officers, representatives, by it, recommended decision of the hear­ dismissed. agents, and employees, directly or ing examiner and exceptions thereto, I t is further ordered, That the com­ through any corporate or other device, briefs of counsel supporting the com­ plaint be, and it hereby is, dismissed as in or in connection with the sale, for plaint, counsel for respondents, and to respondent AC Spark Plug Company. replacement purposes, of spark plugs in counsel for Kaiser-Frazer Corporation, I t is further ordered, That the re­ commerce, as “ commerce” is defined in Hudson Motor Car Company, Nash- spondent General Motors Corporation the Clayton Act, do forthwith cease and Kelvinator Corporation, Packard Motor shall, within sixty (60) days after serv­ desist from discriminating in the price Car Company, and Willys-Overland ice upon it of this order, file with the of said spark plugs of like grade and Motors, Inc., as amici curiae, and oral Commission a report, in writing, setting quality: argument of opposing counsel; and the forth in detail the manner and form in 1. By selling to any direct purchaser Commission having issued its order dis­ which it has complied with this order. at net prices higher than the net prices posing of the exceptions to the recom­ Issued: July 10, 1953. charged any other direct purchaser who mended decision of the hearing examiner in fact competes in the resale and distri­ and having made its findings as to the By the Commission. bution of said spark plugs with the pur­ facts1 and its conclusion1 that respond­ [ s e a l ] W m. P. G l e n d e n in g , Jr., chaser paying the higher price. ent General Motors Corporation has vio­ Acting Secretary. 2. By selling to any indirect purchaser lated the provisions of subsection (a) of at net prices higher than the net prices section 2 of the Clayton Act, as amended, [P. R. Doc. 53-6817; Piled, Aug. 4, 1953; charged any other direct or indirect 8:50 a. m.] and section 3 of said Clayton A ct: purchaser who in fact competes in the I t is ordered, That respondent General resale and distribution of said spark Motors Corporation, a corporation, and plugs with the purchaser paying the its officers, representatives, agents, and [Docket 5624] higher price. employees, directly or through any cor­ P art 3— D ig e st o f C ease and D e s is t I t is further ordered, That the allega­ porate or other device, in or in connec­ O rders tions in Count I of the complaint relat­ tion with the sale, for replacement pur­ ing to respondent’s price differences be­ poses, of spark plugs, oil filters, oil filter ELECTRIC ATJTO-LITE CO. tween (1) purchasers buying for original cartridges, oil filter elements, fuel pumps, Subpart—Discriminating in price equipment and (2) purchasers buying fuel pump part kits, speedometer cables, under section 2, Clayton Act, as amend­ for original equipment and purchasers and related automotive parts and acces­ ed—Price discrimination ünder 2 (a) : buying for resale for replacement, and sories in commerce, as “commerce” is § 3.715 Charges and price differentials; the allegations in Count n of the com­ defined in the Clayton Act, do forthwith §3.730 Customer classification. In or in plaint, be, and they hereby are, dis­ cease and desist from: connection with the sale, for replace­ missed. (a) Discriminating, directly or indi­ ment purposes, o f spark plugs in com­ I t is further ordered, That the re­ rectly, in the price of said products of merce, discriminating in the price of said spondent, The Electric Auto-Lite Com­ like grade and quality: spark plugs of like grade and quality, (1) pany, shall, within sixty (60) days after 1. By selling to any direct purchaser by selling to any direct purchaser at net service upon it of this order, file with the Commission a report, in writing, set­ at net prices higher than the net prices prices higher than the net prices charged ting^ forth in detail the manner and form charged any other direct purchaser who any other direct purchaser who in fact in which it has complied with this order. in fact competes in the resale and dis­ competes in the resale and distribution tribution of said products with the pur­ of said spark plugs with the purchaser Issued: July 10, 1953. chaser paying the higher price. paying the higher price; and (2) by sell­ By the Commission. 2. By selling to any indirect purchaser ing to any indirect purchaser at net at net prices higher than the net prices prices higher than the net prices [ s e a l] W m. P. G l e n d e n in g , Jr., charged any other direct or indirect pur­ charged any other direct or indirect pur­ Acting Secretary. chaser who in fact competes in the re­ chaser who in fact cohipetes in the re­ sale and distribution of said products [F. R. Doc. 53-6819; Piled, Aug. 4, 1953; sale and distribution of said spark plugs 8:51 a. m.] with the purchaser paying the higher with the purchaser paying the higher price. price; prohibited. (b) Selling or making any contract or TITLE 14— CIVIL AVIATION agreement for sale of said products on (Sec. 6, 38 Stat. 722; 15 U. S. C. 46. Inter­ the' condition, agreement, or under­ pret or apply sec. 2, 38 Stat. 730, as amended; Chapter I— Civil Aeronautics Board standing that the purchaser shall not 15 U. S. C. 13) [Cease and desist order, The Electric Auto-Lite Company, Toledo, Ohio, Subchapfer A— Civil Air Regulations use or deal in or sell the products of a Docket 5624, July 10, 1953] competitor or competitors of the re­ [Reg. No. SR-385A] This proceeding having been heard spondent. P art 40— S c h e d u le d I n t e r st a t e A ir (c) Enforcing in any manner or con­ by the Federal Trade Commission upon C arrier C ertification a n d O p e r a t io n tinuing in operation or effect any con­ the complaint of the Commission, answer R u l e s dition, agreement, or understanding, in of the respondent, stipulated testimony, or in connection with any existing con­ and other evidence in support of and in P art 4i -C ertification a n d O p e r a t io n tract or agreement for sale of said prod­ opposition to the allegations of said com­ R u l e s for S c h e d u le d A ir C arrier O p ­ ucts, which condition, agreement, or plaint taken before a hearing examiner e r a t io n s O u Tsid e t h e C o n t in e n t a l understanding is to the effect that the of the Commission theretofore duly des­ L im it s o f t h e U n it e d S tates purchaser shall not use or deal in or sell ignated by it, recommended decision of P art 42— I rregular A ir C arrier a n d O f f - the products of a competitor or competi­ the hearing examiner and exceptions R o u t e R u l e s — tors of the respondent. thereto, briefs of counsel supporting the (d) Granting any rebate or fixing any complaint, counsel for respondent, and P art 45— C o m m e r c ia l O perator C e r t if i­ price to any purchaser of said products counsel for Kaiser-Frazer Corporation, c a t io n a n d O p e r a t io n R u l e s on the condition, agreement, or under­ Hudson Motor Car Company, Nash-Kel- P art 61—‘S c h e d u l e d A ir C arrier R u l e s standing that such purchaser shall not vinator Corporation, Packard Motor Car SPECIAL CIVIL AIR REGULATION; DELEGATION use or. deal in the products of a competi­ Company, and Willys-Overland Motors, OF AUTHORITY TO ADMINISTRATOR TO PER­ Inc., as amici curiae, and oral argument tor or competitors of the respondent. MIT AIR CARRIERS UNDER CONTRACT TO of opposing counsel; and the Commis­ It is further ordered, That the allega­ MILITARY SERVICES TO DEVIATE FROM sion having issued its order disposing of tions in Count I of the complaint relat­ CIVIL AIR REGULATIONS ing to respondent’s price differences be­ the exceptions to the recommended de­ tween (1) purchasers buying for original cision of the hearing examiner and hav­ Adopted by the Civil Aeronautics Board ing made its findings as to the facts1 and at its office in Washington, D. C., on the * Piled as part of original document. its conclusion1 that respondent has vio­ 31st day of July 1953. 4596 RULES AND REGULATIONS

Some time ago the Air Transport As­ delegated authority in the Administrator (Sec. 205, 52 Stat. 984; 49 U. S. C. 425. In­ without lapse. Since this regulation im­ terpret or apply secs. 601, 604, 52 Stat. 1007, sociation (ATA) on behalf of several 1010, as amended; 49 U. S. C. 551, 554) scheduled air carriers under contract to poses no additional burden on any per­ the military services requested that au­ son, it may be made effective on less than By the Civil Aeronautics Board. thority be granted to such carriers to 30 days’ notice. [ s e a l ] M. C. M u l l ig a n , permit them to deviate from certain The Board considers it necessary to Secretary. provisions of Parts 40, 41, 42, 45, and 61 continue to limit the operations con­ of the Civil Air Regulations, under which ducted pursuant to any deviation granted [F. R. Doc. 53-6833; Filed, Aug. 4, 1953; they were then required to operate, in by the Administrator to those operations 8:53 a. m.] order to permit such carriers to accom­ conducted pursuant to military contracts plish expeditiously the mission assigned and to require that all operations con­ them by the military services. ATA ducted in accordance with such devia­ stated that, in view of the type of opera­ tions be conducted in accordance with Subchapter B— Economic Regulations tions which these carriers had been re­ such terms and conditions as the Admin­ [Reg. ER—187] quested to perform, certain provisions of istrator may prescribe in granting the P art 223— T a r iff s o f A ir C ar r ie r s; F ree those parts imposed an undue burden deviation. It is anticipated that the and R educed R ate T ransportation upon the air carriers involved. It Administrator will continue, as part of appeared that several difficulties en­ the procedure in issuing a deviation of PERSONS TO WHOM FREE AND REDUCED RATE countered in complying with current reg­ major importance, to coordinate his de­ TRANSPORTATION MAY BE FURNISHED ulations resulted from the fact that some cision with the Board and the appropri­ ate military authorities. Adopted by the Civil Aeronautics of the air carriers were acting in the Board at its office in Washington, D. C., capacity of prime contractors with the The regulation has been changed by on the 28th day of July 1953. military services, while others were act­ deleting the words “or desirable” from At the present time § 223.2 (b) pro­ the phrase “ necessary or desirable” as ing as subcontractors and were merely vides, in part, that all air carriers en­ contained in paragraph 1 o f SR-385. furnishing aircraft and/or flight crews to gaged in overseas or foreign air trans­ This change was made because of diffi­ another air carrier for use in operations portation may furnish free or reduced conducted pursuant to the military con­ culty encountered in the administration of the regulation which resulted from rate transportation to: tracts. It should be noted that Parts 40, (b) Directors, officers, and employees some air carriers seeking to place an in­ 41, 42, 45, and 61 were designed to be and members of their immediate fami­ applicable to scheduled and irregular air terpretation on the word “ desirable” lies, of any person operating as a com­ carrier operations performed under nor­ which would in effect require the Admin­ istrator to grant a waiver of such pro­ mon carrier by air, or in the carriage of mal operating conditions. The Board mails by air, or conducting transporta­ believed that the type of operation which visions as the air carrier considered desir­ tion by air, in a foreign country, but only air carriers were expected to perform in able. Since the purpose of the regulation over routes and in territories served in executing their obligations under mili­ is to permit the Administrator to issue tary contracts was a specialized type of waivers in those instances where it is such foreign country; This authorization is more limited in operation different in many respects essential to the operations being con­ its geographical scope than the specific from the normal type of air carrier op­ ducted, it is considered that the air car­ eration envisaged by the then current rier or the Department of Defense should grant of authority contained in section Civil Air Regulations relating to air car­ bear the burden of establishing .the ne­ 403 (b) of the act, which permits air carriers arid foreign air carriers, subject rier operations. For those reasons, the cessity for deviation from the regulations. Board, on July 28, 1950, adopted Special In consideration of the foregoing the to terms and conditions prescribed by Civil Air Regulation SR-349 which dele­ Civil Aeronautics Board hereby makes the Board, to offer free or reduced rate gated authority to the Administrator to and promulgates a Special Civil Air Reg­ transportation to officers, directors, and permit air carriers under contract to the ulation, effective August 1, 1953, to read employees of other air carriers and for­ military services to deviate from certain as follows: eign air earners. parts of the Civil Air Regulations in 1. Contrary provisions of the Civil Air By petition filed with the Board on performing such contracts, such author­ Regulations notwithstanding, the Ad­ March 16, 1953, Pan American World ity to terminate on August 1,1951. This ministrator may, upon application by an Airways, Inc., requested that the fore­ authority was extended to August 1,1952, air carrier, authorize an air carrier un­ going § 223.2 (b) of the regulations be by SR-367 arid to August 1, 1953, by der contract to the military services, or amended, so as to permit the grant of SR-385. an air, carrier furnishing civil aicraft free or reduced rate transportation, On July 9, 1953, the Board published and/or flight crews to another air car­ without the limitations specified in that as a notice of proposed rule making in rier for use in operations conducted pur­ section, to carriers which do not fall within the categories of “ air carrier” the F ederal R egister (18 F. R. 4032) and suant to a contract with the military circulated as Draft Release No. 53-10 services, to deviate from the applicable or “foreign air carrier” as defined dated July 8, 1953, a proposal to extend provisions of Parts 40 (including revised by the act. The proposal of Pan Amer­ for one year the authority provided in Part 40), 41, 42, 45, and 61 to the extent ican was thereafter circulated for com­ SR-385 to August 1,1954. As a result of that he finds upon investigation a devia­ ment by the Board as a Notice of comment received in response to the July tion from those regulations is necessary Proposed Rule-Making in response to 9, 1953, notice of proposed rule making, for the expeditious conduct of such petition as Draft Release No. 61. No it appears that a controversy exists with operations. adverse comments were received. The respect to continuation of the authority 2. Any authority granted by the Ad­ Board is impressed with the arguments granted by SR^385. ministrator pursuant to this regulation advanced by the petitioner in support of Objection to further extension of the shall be limited to those operations con­ its petition and by those of the pther rule was predicated upon assertions that ducted pursuant to military contracts interested persons who have commented the emergency for which this authority and shall not be applicable to any other on the proposed rule and believes that was granted no longer exists. In view of type of operation. no useful purpose will be served by con­ this controversy, it appears to the Board 3. The Administrator shall, in any au­ tinuing to restrict this authorization for that further investigation should be thorization granted pursuant to this reg­ the furnishing of free and reduced rate made to determine the necessity for con­ ulation, specify the terms and conditions transportation to the routes operated tinuation of the rule and additional op­ under which the air carrier may deviate and the territory served in the foreign portunity be given to interested parties from the currently prescribed regula­ country of the other common carriers to present comment to the Board. Until tions, and each carrier shall, in the con­ by air. such investigation can be completed, the duct of operations pursuant to military Interested persons have been afforded Board considers that the authority con­ contracts, comply with such terms and an opportunity to participate in the tained in SR-385 should be continued. conditions.’ making of this amendment, and due Accordingly, the Board concludes that This regulation shall terminate No­ consideration has been given to all rele­ the provisions of SR-385 should be ex­ vember 1, 1953, unless sooner superseded vant matter presented. Since this reg­ tended for three months to maintain the or rescinded. ulation operates to relieve carriers from Wednesday, August 5, 1953 FEDERAL REGISTER 4597 restriction, it may be made effective members and employees of the Commis­ TITLE 32A— NATIONAL DEFENSE, immediately. sion. The Commission has now decided In consideration of the foregoing, the to add a new paragraph to Rule 2 under APPENDIX Civil Aeronautics Board hereby amends that regulation in order to formalize its Part 223 pf the Economic Regulations practice regarding clearance of articles Chapter I— Office of Defense (14 CFR Part 223) effective immediately. and treatises published by employees re­ Mobilization By amending § 223.2 (b) to read as lating to the Commission or the statutes R e v o c a t io n o f D e f e n s e M obilization follows: or rules that it administers. O rder 18 and R edesignation o f The Commission deems this amend­ (b) Directors, officers, and employees A m e n d m e n t s T her eto and members of their immediate fami­ ment to be included within the excep­ lies, of any person operating as a com­ tion in section 4 (a) of the Administra­ 1. Defense Mobilization Order No. 18 mon carrier by air, or in the carriage of tive Procedure Act applicable, among (17 F. R. 4926) is revoked effective Au­ mails by air, or conducting transporta­ other things, to “rules of agency organ­ gust 3, 1953, inasmuch as its pertinent tion by air, in a foreign country; and ization, procedure, or practice,” and provisions were redistributed by amend­ deems notice and public procedures of ments 1 and 2 published at 18 F. R. 4518. (Sec. 205, 52 Stat. 984; 49 U. S. C. 425. the character specified in that section to 2. Amendment 1 is redesignated as Interprets or applies sec. 403, 52 Stat. 992; be unnecessary. The Commission deems 49 U. S. C. 483) Defense Mobilization Order No. 18A, and that the amendment is not subject to the s its headnote will read as follows: By the Civil Aeronautics Board. provision of sectjjpn 4 (c) of the Adminis­ trative Procedure Act relating to the DMO 18A—Providing for the Transfer [ s e a l ] M. C. M u l l ig a n , to the Department of Defense of the Secretary. effective date of substantive rules. Statutory basis. This amendment is Management of the Department of De­ [F. R. Doc. 53-6832; Piled, Aug. 4, 1953; adopted pursuant to the authority con­ fense Equipment in the Central Inven­ 8:53 a. m.] ferred upon the Commission by the tory of Production Equipment Group. various statutes administered by it, par­ 3. Amendment 2 is redesignated as ticularly section 19 (a) of the Securities Defense Mobilization Order No. 18B, and Chapter II—-Civil Aeronautics Admin­ Act of 1933, section 23 (a) of the Securi­ its headnote will read as follows: ties Exchange Act of 1934, section 20 (a) istration, Department of Commerce of the Public Utility Holding Company DMO 18B—Providing for the Estab­ lishment of a Defense Mobilization Pro­ Subchapter C— Aircraft Regulation» Act of 1935, Section 319 of the Trust duction Equipment Inventory. [Arndt. 1] Indenture Act of 1939, section 38 (a) of the Investment Company Act of 1940, O f f ic e o f D e f e n s e P art 502—D ealers’ A ir cr aft R eg istr a­ and section 211 (a) of the Investment M o b l iz a t io n , t io n C ertificates Advisers Act of 1940. A r t h u r S. F l e m m in g , AREA OF VALIDITY Text of amendment. Section 208.2 Director. (Rule 2) of the regulation regarding The 'purpose of this amendment is to conduct of members and employees and - [F. R. Doc. 53-6901; Filed, Aug. 4, 1953; specify the area within which a dealers’ 11:14 a. m.] aircraft registration certificate is valid. former members and employees of the Commission is hereby amended by the Section 502.4 (a ), published on April 30, 1947, in 12 F. R. 2804, is amended by addition of a new paragraph (f) reading as follows: adding a new subparagraph (3) to read: [Defense Mobilization Order No. 29] § 203.2 Outside or private employ­ § 502.4 Limitation s— (a) Oper­ ment. * * * E stablishing t h e D e f e n se R e n t a l A reas ation. * * * (f) .No employee shall publish any D iv is io n (3) A dealers’ aircraft registration article or treaties relating to the Com­ certificate is valid for an aircraft only By virtue of the authority vested in mission or the statutes and rules that it while the aircraft is operated within the me by Executive Order 10475 of July 31, administers without having obtained United States. As used in this subpara­ 1953, “Administration.of the Housing and clearance from the Commission. The graph, “United States” means the several Rent Act of 1947, as amended” , it is proposed publication will be examined to States, the District of Columbia, and the hereby ordered: determine whether it contains confiden­ several Territories and possessions of the There is hereby established the De­ tial information or whether there is any United States, including the Territorial fense Rental Areas Division within the waters and the overlying airspace reason why the publication of the em­ Office of Defense Mobilization and the ployee’s private views on the subject thereof. position of Director of the Defense Rental matter would be otherwise inappropriate. Areas Division. The Director shall: (Sec. 205, 52 Stat. 984, as amended; 49 U. S. O. Clearance for publication will not involve 1. Be responsible for all the functions 425. Interprets or applies sec. 501, 52 Stat. adoption of or concurrence in the views 1005, as amended; 49 U. S. C. 521) under the Housing and Rent Act of 1947, expressed, and any such publication as amended, delegated to the Director of This amendment shall become effective shall include at an appropriate place by the Office of Defense Mobilization by Ex­ upon publication in the F ederal R e g is ­ way of footnote or otherwise the follow­ ecutive Order- 10475 of July 31, 1953, ter . ing disclaimer of responsibility: “ Administration of the Housing and Rent [ s e a l ] F. B. L e e , The Securities and Exchange Commission, Act of 1947, as amended”. Administrator of Civil Aeronautics. as a matter of policy, disclaims responsibility 2. Provide for the transfer from the for any private publication by any of its [P. R. Doc. 53-6790; Piled, Aug. 4, 1953; Office of Rent Stabilization to the Office employees. The views expressed herein are of Defense Mobilization of the records, 8:45 a. m.] those'of the author and do not necessarily reflect the views of the Commission or of the property, and funds of the Office of Rent author’s colleagues upon the staff of the Stabilization and so much of the person­ TITLE 17— COMMODITY 'AND Commission. nel of that Office as he may deem neces­ sary for the carrying out of the functions SECURITIES EXCHANGES The amendmènt shall become effective vested in me by Executive Order 10475 of July 28, 1953.. Chapter II— Securities and Exchange July 31, 1953, “Administration of the Commissiojn (Secs. 19, 23, 48 Stat. 85, 901 as amended; Housing and Rent Act of 1947, as sec. 20, 49 Stat. 833, sec. 319, 53 Stat. 1173, amended”. P art 203— C o n d u c t o f M em ber s a n d Em ­ secs. 38, 211, 54 Stat. 841, 855; 15 U. S. C. 77s, 77sss, 78w, 79t, 80ar-37, 8 0 b -ll) This order shall take effect August 3, p l o y e e s a n d F o rm er M em ber s and Em ­ 1953. p l o y e e s o f t h e C o m m is s io n By the Commission. O f f ic e o f D e f e n s e • o u t s id e o f p r iv a t e e m p l o y m e n t [ s e a l ] O rval L. DuBois, M o b l iz a t io n , Statement of purpose. The Securities Secretary. A r t h u r S. F l e m m in g , and Exchange Commission recently J u l y 28, 1953. Director. adopted a regulation regarding conduct [F. R. Doc. 53-6796; Filed, Aug. 4, 1953; [F. R. Doc. 53-6902; Filed, Aug. 4, 1953; of members and employees and former 8:46 a. m.] 11:14 a .m .] No. 152------2 4598 RULES AND REGULATIONS

TITLE 33— NAVIGATION AND (ii) Automatic weapons firing. The boundaries of the said forest are ad­ automatic weapons area will be a surface. justed accordingly: NAVIGABLE WATERS danger zone and closed to navigation N ew M exico P rincipal M eridian Chapter ll— Corps of Engineers, only during the firing of such weapons. Special notices of such firing and the T. 5 S., R. 10 W., Department of the Army Sec. 26, Sy2; dates and hours thereof will be published Sec. 27; P art 204— D anger Z o n e R e g u l a t io n s by the enforcing agency in sufficient time Sec. 28 to 35, inclusive. to permit circularization to interested T. 6 S., R. 9 W., LAKE ERIE, WEST END parties and posting on the bulletin boards Sec. 19, 30 and 31. Pursuant to the provisions of Chapter of post offices in surrounding localities. T. 6 S., R. 10 W. XIX of the Army Appropriation Act of No firing will be scheduled oh Saturdays, Secs. 2 to 11, inclusive; Sundays and holidays between June 16 Secs. 14 to 30, inclusive; July 9, 1918 (40 Stat. 892; 33 U. S. C. 3),' Secs. 34, 35 and 36. § 204.187 (b) governing the use and navi­ and November 30, both dates inclusive. T. 6 S., R. 11 W., gation of the waters of Lake Erie north of (iii) Navigation prohibited. No vessel Secs. 1, 2 and 3; Erie Ordnance Depot, heretofore pre­ shall enter dr remain in a danger zone -Secs. 10 to 15, inclusive. during a firing period unless specific per­ scribed as a danger zone for antiaircraft The areas described aggregate approxi­ artillery firing from Camp Perry and mission is granted in each case by one of Locust Point, Ohio, by units_under the the representatives of the enforcing mately 32,480 acres. jurisdiction of Headquarters, Second agency policing the area in patrol boats. All of the lands described have been Army, Port George G. Meade, Maryland, These boats will be in constant radio patented. is hereby amended extending the period communication with the Safety Controls O rm e L e w i s , for antiaircraft artillery .firing from June Station, Erie Ordnance Depot, and the Assistant Secretary of the Interior. 15 through March 15 of the succeeding danger zone will be under radar and vis­ J u l y 30, 1953. year, effective on and after publication ual surveillance when in use. [F. R. Doc. 53-6791; Filed, Aug. 4, 1953; of this amendment in the F ederal R e g is ­ (iv) Suspension of firing. The Com­ 8:45 a. m.] ter due to the urgent necessity for con­ manding Officer, Erie Ordnance Depot, tinuing operations after August 10, 1953, shall have the authority to suspend all or as follows: any firing for reasonable periods during regattas and immediately after nets are TITLE 46— SHIPPING ' N ote: Paragraph (b ) of this section shall be subject to review by the Department of destroyed or dislocated by severe storms. Chapter II— Federal Maritime Board, the Army»with a view to further limiting the (v) Warning flag. On days when Maritime Administration, Depart­ period of use prior to the commencement of antiaircraft artillery firing is to be con­ operations in 1954 and each year thereafter. ducted a large red flag will be displayed ment of Commerce from the range observation tower at the Subchapter A^Practice and Procedure § 204.187 Lake Erie, west end, north Erie Ordnance Depot from 7:00 a. m. of Erie Ordnance Depot, Lacarne, untiLfiring ceases for the day. [Gen. Order 41, 2d Rev., Amdt. 1] Ohio. *. * * N (vi) Enforcing agency. The danger (b) Areas for antiaircraft artillery P art 201— R u l e s o f P ractice an d P ro­ zones and the patrolling thereof shall be cedure B efore t h e F ederal M a r it im e firing from Camp Perry and Locust under the control of the Commanding Point, Ohio— (1) The areas— (i) Anti­ B oard a n d t h e M a r it im e A d m in is t r a ­ Officer, Erie Ordnance Depot, and such t io n 1 aircraft artillery firing area. That part agencies as he may designate. Equip­ of Lake Erie within an area extending ment used in clearing the areas will fly miscellaneous a m e n d m e n t s north from Erie Ordnance Depot, La- or expose a square red flag. came, Ohio, bounded as follows: Whereas, the Federal Maritime Board (vii) Restrictions on navigation. The and the Maritime Administration find Beginning at a point on the south shore restrictions imposed on navigation by of Lake Erie at longitude 83°05T9", in that certain minor amendments and cor­ this paragraph are in addition to those rections should be made in § 201.147 the vicinity of Locust Point; thence to imposed by paragraph (a) of this section. latitude 41 °45'14'\longitude 83°12'18"; Authority of presiding officer, paragraph thence to latitude 41°46'45", longitude [Regs., July 23, 1953, 800.2121 (Erie Lake) — (b) of § 201.157 Written evidence, and 83°11'23"; thence to latitude 41°48'58", ENGW O] (40 Stat. 892; 33 U. S. C. 3) the heading designated Subpart M— longitude 83°05'54"; thence to latitude Briefs; Requests for Findings; Decisions; [SEAL] W M . E. BERGIN, Exemptions of this part (Gen. Order 41, 41°42'52'\ longitude 82°52'47"; thence Major General, U. S. Army, 2d Rev.) published in the F ederal to latitude 41°38'36", longitude 82°56' The Adjutant General. 49"; thence approximately 215°04' true R egister (18 F. R. 3716-3726), as here­ to a point on the south shore of Lake [F. R. D qc. 53-6814; Filed, Aug. 4, 1953; inafter set forth: Erie where the water intake pipe line 8:49 a. m.] I t is ordered, That effective on July 31, intersects the shore line; thence north­ 1953, General Order 41, 2d Revision be, westerly along the shore to the point of and the same is hereby, amended as beginning. TITLE 43— PUBLIC LANDS: follows: (ii) Automatic weapons area.. That INTERIOR 1. In § 201.147 delete the words “ admit part of Lake Erie bounded as follows: competent” immediately following the Beginning at a point on the south shore Chapter I— Bureau of Land Manage­ words “rule upon offers of proof and” of Lake Erie at Camp Perry where the ment, Department of the Interior and insert in lieu thereof the words “re­ ceive relevant, material, reliable and water intake pipe line intersects the Appendix— Public Land Orders shore line; thence to latitude 41°38'36", probative”. longitude 82°56'49"; thence to latitude [Public Land Order 906] 2. In § 201.147 delete the words “and 41°35'31", longitude 82°54'47"; thence N e w M e x ic o upon appearances by noninterveners” approximately 241° 15' true to a point immediately following the words “act on the shore of Lake Erie at the Camp EXCLUDING CERTAIN LANDS FROM THE GILA upon petitions to intervene” . Perry pier; thence northwesterly along NATIONAL FOREST 3. In paragraph (b) of § 201.157 delete the shore to the point of beginning. By virtue of the authority vested in the the word “competent” immediately fol­ (2) The regulations— (i) AntiaircraftPresident by the. act of June 4, 1897 (30 lowing the words “ opportunity to par­ artillery firing. Antiaircraft artillery Stat. 34, 36; 16 U. S. C. 473), and pur­ ticipate through submission of” and in­ firing will be conducted from 8:30 a. m. suant to Executive Order No. 10355 of sert in lieu thereof the words “relevant, to noon and from 1:00 to 4:30 p. m., on May 26, 1952 (17 F. R. 4831), and upon material, reliable and probative”. all days other than Saturdays, Sundays recommendation of the Under Secretary and holidays between June 16 and No­ of Agriculture, it is ordered as follows: 1 Copies of the rules as amended by this vember 30, inclusive; firing between The following-described lands are order can be obtained from the ’Superin­ December 1 and March 15, inclusive, will hereby excluded from the area now tendent of Documents, U. S. Government be unrestricted as to the days of the within the boundaries of the Gila Na­ Printing Office, Washington 25, D. C., at 30 week and hour of the day. tional Forest, New Mexico, and the cents per copy. Wednesday, August 5, 1953 FEDERAL REGISTER 4599

4. Delete the word “Exemptions” from Sec. 403. P owers of appointment (reve­ the term “general power of appointment’* the headnote designated “Subpart M ” n u e ACT OF 1942, APPROVED'OCTOBER 21, 1942). means a power which is exercisable in favor and insert in lieu thereof the word * * * * * of the decedent, his estate, his creditors, or “Exceptions” . (d ) Powers with respect to which amend­ the creditors of his estate; except that— ment not applicable. (A ) A power to consume, invade, or appro­ (Sec. 204, 49 Stat. 1987, as amended; 46 priate property for the benefit of the dece­ * . * * * * U. S. C. 1114) dent which is limited by an ascertainable (2) The amendments made by this sec­ standard relating to the health, education, Dated: July 31, 1953. tion shall not become applicable with respect support, or maintenance of the decedent to a power to appoint created on or before shall not be deemed a general power of By order of the Federal Maritime the date of enactment of this act, which is appointment. Board. exercisable in favor of the decedent, his (B) A power of appointment created on or A. J. W il l ia m s , estate, his creditors, or the creditors of his before October 21, 1942, which is exercisable estate, if at such date the donee of such Secretary. by the decedent only in conjunction with power is under a legal disability to release another person shall not be deemed a general By order of the Maritime Administra­ such power, until six months after the ter­ power of appointment. tion. mination of such legal disability. For the (C ) In the case of a-power of appointment purposes of the preceding sentence, an in­ [ s e a l ] " A. J. W il l ia m s , created after October 21, 1942, which is ex­ dividual in the military or naval forces of ercisable by the decedent only in conjunc­ Secretary. the United States shall, until the termina­ tion with another person— [P. R. Doc. 53-3826; Piled, Aug. 4, 1953; tion of the present war, be considered under (i) If the power is not exercisable by the 8:53 a. m.] a legal disability to release a power to decedent except in conjunction with the appoint, creator of the power— such power shall not ***** be deemed a general power of appointment. P ublic La w 58 ( 82d Congress), A pproved (ii) If the power is not exercisable by the June 28, 1951 decedent except in conjunction with a per­ PROPOSED Be it enacted by the Senate and House of son having a substantial interest in the prop­ Representatives of the United States of erty, subject to the pov^er, which is adverse RULE MAKING America in Congress assembled, That this to exercise of the power in favor of the Act may be cited as the “Powers of Appoint­ decedent— such power shall not be deemed a ment Act of 1951”. general power of appointment. For the pur­ poses of this clause a person who, after the DEPARTMENT OF THE TREASURY Sec. 2. Estate tax— powers op a ppo int­ death of the decedent, may be possessed of m e n t . a power of appointment (with respect to Internal Revenue Service (a) Section 811 (f) of the Internal Reve­the property subject to the decedent’s nue Code (relating to powers of appoint­ power) which he may exercise in his own [ 26 CFR Part 81 1 ment) is hereby amended to read as follows: favor shall be deemed as having an interest [Regs. 105] , (f ) Powers of appointment— (1) Property in the property and such interest shall be with respect to which decedent exercises a deemed adverse to such exercise of the de­ cedent’s power. R e g u l a t io n s R e l a t in g to E state T ax general power of appointment created on or before October 21, 1942. To the extent of (iii) If (after the application of clauses NOTICE OF PROPOSED RULE MAKING (i) and (ii)) the power is a general power any property with respect to which a general Notice is hereby given, pursuant to the power of appointment created on or before of appointment and is exercisable in favor of such other person—such power shall be October 21, 1942, is exercised by the decedent Administrative Procedure Act, approved deemed a general power of appointment only June 11, 1946, that the regulations set (1) by will or (2) by a disposition which is of such nature that if it were a transfer of in respect of a fractional part of the prop­ forth below in tentative form are pro­ erty subject to such power, such part to be property owned by the decedent, such prop­ determined by dividing the value of such posed to be prescribed by the Commis­ erty would be includible in the decedent’s property by the number of such person (in­ sioner of Internal Revenue, with the gross estate under subsection (c) or ( d ) ; cluding the decedent) in favor of whom such approval of the Secretary of the Treas­ but the failure to exercise such a power or power is exercisable. ury. ’Prior to the final adoption of such the complete release of such a power shall regulations, consideration will be given not be deemed an exercise thereof. For the purposes of clauses (ii) and (iii) a to any data, views, or arguments pertain­ If before November 1, 1951, or within the power shall be deemed to be exercisable in ing thereto which are submitted in writ­ time limited by paragraph (2) of section 403 favor of a person if it is exercisable in favor ing in duplicate to the Commissioner of (d) of the Revenue Act of 1942, as amended, of such, person, his estate, his creditors, or in cases to which such paragraph is appli­ the creditors of his estate. Internal Revenue, Washington 25, D. C., cable, a general power of appointment (4) Creation of another power in certain within the period of thirty days from the created on or before October 21, 1942, shall cases. To the extent of any property with date of publication of this notice in the have been partially released so* that it is no respect to which the decedent (1) by will F ederal R e g ist e r . The proposed regu­ longer a general power of appointment, the or (2) by a disposition which is of such lations are to be issued under the au­ subsequent exercise of such power shall not nature that if it were a transfer of property thority contained in section 3791 of the be deemed to be the exercise of a general owned by the decedent, such property would, Internal Revenue Code (53 Stat. 467; 26 power of appointment. be includible in the decedent’s gross estate (.2) Powers created after October 21, 1942. under subsection ( c ) , exercises a power of U.S. C. 3791). To the extent of any property with respect appointment created after October 21, 1942, [ SEAL ] T. COLEM AN ANDREWS, to which the decedent has at the time of his by creating another power of appointment Commissioner of Internal Revenue. death a general power of appointment which under the applicable local law can be created after October 21, 1942, or with re­ validly exercised so as to postpone the vesting In order to conform Regulations 105 spect to which the decedent has at any time of any estate or interest in such property, or (26 CFR Part 81) to sections 1 and 2 of exercised or released such a power of appoint­ suspend the absolute ownership or power of Public Law 58 (82d Congress, 1st Ses­ ment by a.disposition which is of such nature alienation afT such property, for a period that if it were a transfer of property owned ascertainable without regard to the date of sion) , approved June 28,1951, relating to the creation of the first power. taxability for purposes of the estate tax by the decedent, such property would be in­ cludible in the decedent’s gross estate under (5) Lapse of power. The lapse of a power of property subject to a power of ap­ subsection (c) or (d). A disclaimer or of appointment created after October 21, pointment, such regulations are amended renunciation of such a power of appoint­ 1942, during the life of the individual pos­ as follows: ment shall not be deemed a release of such sessing the power shall be considered a release of such-power. The rule of the pre­ P aragraph 1. The statutory provisions power. immediately following section 802 of the For the purposes of this paragraph (2) the ceding sentence shall apply with respect to power of appointment shall be considered to the lapse of powers during any calendar year Internal Revenue Code and preceding only to the extent that the property which section 302 (f) of the Revenue Act of exist on the date of the decedent’s death even though the exercise of the power is sub­ could have been appointed by exercise of 1926 (as originally enacted) which pre­ ject to a precedent giving of notice or even such lapsed powers exceeded in value, at the cede § 81.24 are deleted. though the exercise of the power takes effect time of such lapse, the greater of the fol­ lowing amounts: P ar. 2. There is inserted immediately only on the expiration of a stated period after section 802 of the Internal Revenue (A ) $5,000, or after its exercise, whether or not on or before (B) 5 percentum of the aggregate value, Code and preceding section 302 (f) of the date of the decedent’s death notice has at the time of such lapse, of the assets out the Revenue Act of 1926 (as originally been given or the power "has been exercised. of which, or the proceeds of which, the exer­ enacted), as set forth preceding § 81.24 (3) Definition of general power of appoint­ cise of the lapsed powers could have been the following: ment. For the purposes of this subsection satisfied. 4600 PROPOSED RULE MAKING

(b ) Date of creation of power. For the cedent to himself within the concept of appointment created on or before Octo­ purposes of this section, a power of appoint­ section 811 (c) or (d). (See §§81.15 ber 21, 1942. (i) In the case of a gen­ ment created by a will executed on or before through 81.21.) No provision of section eral power of appointment created on or October 21, 1942, shall be considered a ppwer before ôctober 21, 1942, section 811 (f) created on or before such date if the person 811 (f) or of this section is to be con­ executing such will dies before July 1, 1949, strued as in any way limiting the appli­ (1) requires the inclusion in the gross without having republished such will, by cation -of any other section of the In ­ estate of the decedent of the value of codicil or otherwise, after October 21, 1942. ternal Revenue Code or of the regula­ property with respect to which such a (c) Effective date. The amendments made tions in this part. For example, if a power is execised by the decedent (a) by by this section shall be effective as if made trust provides for payment of the income will, or (b) by a disposition which is of by section 403 of the Revenue Act of 1942 to A for life with power in A to appoint such nature that if it were a transfer on the date of its enactment (applicable with respect to estates of decedents dying the remainder by will and, in default of of property owned by the decedent, such after October 21, 1942). such appointment for payment of the property would be includible in the de­ income to A ’s widow, W, and for payment cedent’s gross estate under section 811 P ar. 3. Section 81.24, as amended by of the remainder to A’s son, John, if he (c) (relating to transfers in contempla­ Treasury Decision 5810, approved Octo­ survives W, otherwise to A’s estate, there tion of, or taking effect at, death, or in ber 5, 1950, is further amended to read is includible in A ’s gross estate under which possession or enjoyfnent is re­ as follows: section 811 (a) the value of his interest tained until death) or section 811 (d) §81.24 Property subject to power of in the remainder whether or not the (relating to transfers with power appointment by decedent— (a) Gen­ power is exercised and whether or not reserved to alter, amend, revoke, or ter­ eral— (1) Introduction. Subject to the the power was created before, on, or after minate). Section 811 (f) (3) (B) pro­ rules prescribed hereinafter, the provi­ October 21, 1942. vides that a power created on or before sions of section 811 (f) of the Internal (iii) Where a power of appointmentOctober 21,1942, which is not exercisable Revenue Code require the inclusion in exists only as to part of an entire group by the decedent except in conjunction decedent’s estate of the value of property of assets or only in respect of a limited with another person, shall not be deemed In respect of which the decedent interest in property, this section shall a general power of appointment. See possessed, exercised, or released certain apply only to such part or interest. paragraph (a) (3) of this section for powers of appointment. This para­ (3) General power of appointment. definition of a general power of appoint­ graph contains rules of general applica­ (i) For purposes of this section, the term ment. The rules of section 811 (c) or tion; paragraph (b) (1) of this section “general power of appointment”, except (d) which are to be applied are those in contains rules specifically applicable to as limited in paragraph (b) of this sec­ effect on the date of decedent’s death general powers of appointment created tion, means any power of appointment which are applicable.to transfers made on or before October 21, 1942, in respect exercisable in favor of the decedent, his on the date when the exercise of the of estates of decedents dying after that estate, his creditors, or the creditors of power occurred. Thus, if a decedent, date; paragraph (b) (2) of this section his estate. A power of appointment ex­ who exercises a general power of ap­ sets forth specific rules applicable to ercisable to meet the estate tax, and any pointment by deed, dies after September powers of appointment created after other taxes, debts, and charges which are 23, 1950, the date of enactment of the October 21, 1942;'and paragraph (c) of enforceable against the estate, is in­ Revenue Act of 1950, such exercise may this section contains the rules in respect cluded within the meaning of a power of not be considered as in contemplation of of estates of decedents'dying on or before appointment exercisable in favor of the death unless made within three years October 21, 1942. decedent’s estate or the creditors of his prior to the decedent’s death. See sec­ (2) Power of appointment, (i) Theestate. A power of appointment exer­ tion 811 (1) and § 81.16. Similarly, if term “ power of appointment” includes cisable for the purpose of discharging a the decedent, before October 8,1949, ex­ all powers which are in substance and legal obligation of the decedent or for his ercises a general power of appointment effect powers of appointment regardless pecuniary benefit is considered a power by making a disposition in trust taking of the nomenclature used in creating the of appointment exercisable in favor of effect at death under which he retains a power and regardless of local property the decedent or his creditors. reversionary interest worth less than 5 law connotations. For example, if a (ii) A power to consume, invade, orpercent of the value of the transferred transfer in trust provides that the bene­ appropriate property for the benefit of property, the exercise of the power does ficiary may appropriate or consume the the decedent which is limited by an as­ not cause the property to be includible principal of the trust, such power to con­ certainable standard relating to the in the gross estate of the decedent since, sume or appropriate is a power of ap­ health, education, support, or mainte­ if it had been a transfer of property pointment. Similarly, a power given to nance of the decedent, shall not be owned by the decedent, it would not a donee to alter, amend, revoke or ter­ deemed a general power of appointment. have been includible under section 811 minate a trust is a power of appoint­ Whether a power is limited by an as­ (c) (1) (C ). See §81.17 (c). On the ment. If the community property laws certainable standard will be determined other hand, if the decedent, on or after of a state confer upon the wife a power by applying the principles followed in October 8, 1949, exercises a general of testamentary disposition over prop­ ascertaining the extent to which, if any, power of appointment by a disposition erty in which she does not have a vested a bequest to a trust for private and char­ under which possession or enjoyment of interest she is considered as having a itable purposes is allowable as a deduc­ property subject to the exercise can be power of appointment. A power in the tion under section 812 (d ). A power to obtained only by surviving the decedent, decedent to remove or discharge a trus­ consume, invade, or appropriate property the transferred property will be in­ tee and appoint himself may be a power for comfort, pleasure, desire, or hap­ cludible in the decedent’s gross estate of appointment. On the other hand the piness is not a power limited by an to the same extent as if the disposition mere power of management, investment, ascertainable standard. had constituted a transfer by the de­ or custody of assets exercisable 'in a (4) Instruments to be filed with, re­ cedent of property of which he was the fiduciary capacity whereby the holder turn. Duplicate copies of the instru­ owner. has no power to enlarge or shift any of ment granting the power and, if the (ii) ' In the case of estates of decedents the beneficial interests-therein is not a power was disclaimed, renounced, exer­ dying after October 21, 1942, a power of power of appointment. Further, the cised or released by an instrument, such appointment is exercised where the right in a beneficiary of an inter vivos instrument, one of each to be certified property subject thereto is appointed to trust to assent to a periodic accounting or verified, must be filed with Form 706 the taker in default of appointment re­ thereby relieving the trustee from fur­ in all cases, unless the decedent was a gardless of whether or not the appointed ther accountability is not a power of nonresident, in which case only one copy interest and the interest in default of appointment if such right of assent does of each instrument, certified or verified, appointment are identical, and regard­ not consist of any power or right to en­ is required. The copies must be filed less of whether or not the appointee large or shift the beneficial interests of even though it is contended that the renounces any right to take under the power was not a general power of ap­ any beneficiary therein. appointment. pointment and the property is not re­ (iii) A failure to exercise a general (ii) For the purpose of this section,turned for tax. power of appointment created before the term “power of appointment” does (b) Estates of decadents dying after October 21,1942, or a complete release of not include powers reserved by the de­ October 21, 1942— (1) General powers of such a power is not considered to be an Wednesday, August 5, 1953 FEDERAL REGISTER 4601 exercise of a general power of appoint­ For purposes of section 811 (f) (2), a which after application of the rules set ment. An exercise which concurrently power of appointment is considered to forth in (a) and (b) of this subdivision, carries with it a complete relinquishment exist on the date of the decedent's death constitutes a general power of appoint­ of the power of appointment or an exer­ where the time for the exercise of the ment will be treated as though the cise followed by a complete relinquish­ power is determined by the date of his holders of the power who are permis­ ment of the power of appointment is death. It is also considered to exist on sible appointees of the property were deemed an exercise and not a release of the date of the decedent’s death even joint owners of property subject to the the power of appointment. I f a general though the exercise of the power is sub­ power. The decedent, under this rule, power of appointment is partially re­ ject to the precedent giving Of notice, or will be treated as possessed of a general leased so that' it is not thereafter a even though the exercise of the power power of appointment over an aliquot general power of appointment, a subse­ takes effect only on the expiration of a share of the property, to be determined quent exercise of such partially released stated period after its exercise, whether with reference to the number of joint power shall not be deemed the exercise or not on or before the decedent’s death holders, including the decedent, who (or of a general power of appointment if notice has been given or the power has whose estates or creditors) are permis­ such partial release occurs prior to been exercised. sible appointees. Thusi for example, if whichever is the later of the following (b) The statute also requires, except X, Y, and Z hold an unlimited power dates: in case of a bona fide sale for an ade­ jointly to appoint among a group of per­ (a) November 1, 1951; quate and full consideration in money sons, including themselves, but on the (b) I f the decedent was under a legal or money’s worth, the inclusion in the death of X the power does not pass to disability to release such power on gross estate of property with respect to Y and Z jointly, then Y and Z are not October 21, 1942, the day after the ex­ which the decedent has exercised or re­ considered to have interest adverse to piration of six months following the leased a general power of appointment the exercise of the power in favor of X. termination of such legal disability. See by a disposition which is of such a na­ In this case, X is considered to possess section 403 (d) (2) of the Revenue Act ture that, if it were a transfer of prop­ a general power of appointment as to of 1942, as amended. erty owned by the decedent, such prop­ one-third of the property subject to the However, if the general power is par­ erty would be includible in the dece­ power. tially released on or after Noveftiber 1, dent’s gross estate under section 811 (c) (iii) Releases and lapses of general 1951 (except where such partial release or (d ). The principles set forth in sub- powers of appointment, (a) A release is effected within the period of six paragraph (1) of this paragraph for of a power of appointment need not be months following the termination of the determining the application of the formal or express in character. The legal disability referred to in the pre­ pertinent provisions of section 811 (c) failure to exercise a power of appoint­ ceding sentence), and is thereafter or (d) to a particular exercise of a ment created after October 21, 1942, exercised, such exercise will constitute power of appointment are applicable for within a specified time, so that the power the exercise of a general power of purposes of determining whether an lapses, constitutes a release of the power. appointment. exercise or release of a power of appoint­ However, section 811 (f) (5) provides (iv) The legal disability referred to is ment created after October 21, 1942, that such a lapse of a power of appoint­ determined under local law and may in­ causes the property to be included in the ment during any calendar year shall be clude the disability of an insane person, decedent’s estate under section 811 treated as a release for purposes of in­ a minor, or an unborn child. The fact (f) (2). clusion of property in the gross estate that the type of general power of ap­ (ii) Joint powers created after October under section 811 (f) (2) only to the pointment possessed by the decedent 21,1942. The following rules shall apply extent that the property which could actually was not generally releasable with respect to a power of appointment have been appointed by exercise of such under the local law does not place the created after October 21, 1942, which is lapsed power exceeds the greater of (1) decedent under a legal disability within exercisable only in conjunction with an­ $5,000 or (2) 5 percent of the aggregate the meaning of subdivision (iii) (b) of other person: value, at the time of such lapse, of the this subparagraph. (a) Such a power shall not be con­ assets out of which, or the proceeds of (v) In general, it is assumed that all sidered as a general power of appoint­ which, the exercise of the lapsed powers general powers of appointment are re­ ment if it is not exercisable by the dece­ could have been satisfied. Thus, for ex­ leasable, unless the local law on the sub­ dent except with the consent or joinder ample, if an individual has a noncumu- ject is to the contrary, and it is pre­ of the creator of the power. lative right to withdraw $10,000 a year sumed that the method employed to (b) Such a power shall not be con­ from the principal of $200,000 trust fund release the power is effective,, unless it sidered as a general power of appoint­ (which neither increases nor decreases ment if it is not exercisable by the dece­ is not in accordance with the local law in value prior to death), the failure to relating specifically to releases or, in the dent except with the consent or joinder exercise this right of withdrawal will not of a person having a substantial inter­ absence of such local law, is not in ac­ result in estate tax -with respect to the est in the property subject to the power cordance with the local law relating to power to withdraw $10,000 which lapses which is adverse to the exercise of thé each year prior to the year of death. At similar transactions. power in favor of the decedent, his estate, (vi) A power to appoint created by a death there will, be included in the gross his creditors, or the creditors of his will executed on or before October 21, estate of the holder of the power the estate. A taker in default of appoint­ 1942, shall be considered a power created $10,000 which he was entitled to with­ ment has an interest which is adverse to draw for the year in which his death oc­ on or before such date if thb person ex­ such an exercise. A coholder of the ecuting such will died before July 1,1949, curs less any amount which he may have power has no adverse interest merely be­ taken during such year. However, if in without having republished such will, by cause of his joint possession of the power codicil, or otherwise, after October 21, the above example the holder of the nor merely because he is a permissible power had had the right to withdraw 1942. • appointee under a power. However, a co- (2) General powers created after $15,000 annually, the failure to exercise holder of a power is considered as having this power in any year will be considered October 21, 1942— (i) In general, (a) an adverse interest where he may possess Section 811 (f) (2) requires the inclu­ a release of the power to the extent of the power after the decedent’s death and the excess of the amount subject to with­ sion in the gross estate of a decedent of may exercise it at that time in favor of the value of all property with respect to drawal over 5 percent of the trust fund himself, his estate, his creditors, or the (in this example, $5,000, if the trust fund which the decedent has at the time of creditors of his estate. Thus, for his death a general power of appoint­ is worth $200,000 at the time of the example, if X, Y, and Z hold a power lapse). ment created after October 21, 1942. jointly to appoint among a group of per­ (b) The purpose of section 811 (f) (5)] For definition of a general power of sons which includes themselves and on appointment, see paragraph (a) (3) of the death of X the power will pass to Y is to provide a determination, as of the this section and for rules applicable to and Z jointly, then Y and Z are con­ date of the lapse of the power, of the joint powers see subdivision (ii) of this sidered to have interests adverse to the proportion of the property over which subparagraph. The value of such prop­ exercise of the power in favor of X. the power lapsed which is an exempt dis­ erty is includible in the gross estate (c) A power which is exercisable only position for estate tax purposes and the whether or not such power is exercised. in conjunction with another person and proportion thereof which, if the other 4602 PROPOSED RULE MAKING requirements of section 811 are satisfied, such value unreduced by any precedent exercisable immediately prior to the de­ will be considered as a taxable disposi­ or subsequent interest which is not sub­ cedent’s death.” tion. once the taxable proportion of any ject to such second power. Thus, if a (B) By amending the second sentence disposition at the date of lapse has been decedent has a power to appoint by will of the first undesignated paragraph of determined, the valuation of that pro­ $100,000 to a group of persons consisting paragraph (b) to read as follows: “For portion as of the date of the decedent’s of his children and grandchildren and the purpose of subparagraph (2) of this death (or, if the executor has elected the exercises such power by making an out­ paragraph, the expression ‘some other valuation provided by section 811 ( j ) , the right appointment of $75,000 and by event’ includes the expiration of a term value as of the date therein provided), giving one appointee a power to appoint * of years or the happening or failure to is to be ascertained in accordance with $25,000, no more than $25,000 will be happon of a certain or uncertain event the principles which are applicable to includible in the decedent’s gross estate (including the possible exercise of a the valuation of transfers of property by under section 811 (f) (4). If, however, power which is not a taxable general the decedent under the corresponding the decedent appoints the income from power of appointment as defined in sec­ provisions of section 811 (c) and (d ). the entire fund to a beneficiary for life tion 811 (f). (3 )).” Where the failure to exercise the power, with power in the beneficiary to appoint [F. R. Doc. 53-6844; Filed, Aug. 4, 1953; such as the right of withdrawal, occurs the remainder by will, the entire $100,000 8:55 a. m .] in more than a single year, the propor­ will be includible in the decedent’s gross tion of the property over which the power estate under section 811 (f) (4) if the lapsed which is treated as a taxable dis­ exercise of the second power can validly position will be determined separately for postpone the vesting of any estate or [ 26 CFR Part 86 ] each such year. The aggregate of the interest in such property or can suspend taxable proportions for all such years, the • absolute ownership or power of [Regs. 108] valued in accordance with the above alienation of such property for a poriod G if t T ax U nd e r C h apter 4 o f t h e I n ­ principles, will be includible in the gross ascertainable without regard to the date t e r n a l R e v e n u e C ode, as A m e n d e d estate by reason of the lapse. The in­ of the creation of the first power. NOTICE OF PROPOSED RULE MAKING cludible amount, however, shall not ex­ (c) Estates of decedents dying "before ceed the aggregate value of the assets out October 21, 1942. The regulations pre­ Notice is hereby given, pursuant to the of which, or the proceeds of which, the scribed under this paragraph are. ap­ Administrative Procedure Act, approved exercise of the power could have been plicable only with respoct to estates of June 11, 1946, that the regulations set satisfied, valued as of the date of the decedents who died on or before October forth below in tentative form are pro­ decedent’s death (or, if the executor has 21/1942, the date of the enactment of posed to be prescribed by the Commis­ elected the valuation provided by section the Revenue Act of 1942. Property pass­ sioner of Internal Revenue, with the ap­ 811 (j), the value as of the date therein ing under a general power of appoint­ proval of the Secretary of the Treasury. provided). ment must be included in the gross estate Prior to the final adoption of such regu­ (c) A disclaimer or renunciation of a of the person exercising the power lations, consideration will be given to any general power of appointment is not con­ (known as the donee, or appointor), 'if data, views, or arguments pertaining sidered to be a release of the power. The the power is exercised by will. It should thereto which are submitted in writing disclaimer or renunciation must be un­ also be so included if the power is exer­ in duplicate to the Commissioner of In­ equivocal and effective under local law. cised by deed or other instrument either, ternal Revenue, Washington 25, D. C., A disclaimer is a complete and unquali­ (1) in contemplation of death, (2) with within the period of 30 days from the fied refusal to accept the rights to which the intent that the transfer shall take date of publication of this notice in the one is entitled. Such rights refer to the effect in possession or enjoyment at or F ederal R eg iste r . The proposed regu­ incidents of the power and not to other after the death of the donee of the lations are to be issued under the author­ interests of the decedent in the prop­ power, (3) with the retention or reserva­ ity contained in sections 1029 and 3791 erty. I f effective under local law, the tion by the decedent of the use, posses­ of the Internal Revenue Code (53 Stat. power may be disclaimed or renounced sion, right to the income, or other en­ 157, 467; 26 U. S C. 1029, 3791).' without disclaiming or renouncing such joyment of the transferred property, or other interests. There can be no dis­ [ s e a l ] T . C o l e m a n A n d r e w s , (4) with the retention or reservation by Commissioner of Internal Revenue. claimer or renunciation of a power after the decedent of the right to designate its acceptance. In the absence of facts the person or persons who shall possess In order to conform Regulations 108 to the contrary, the failure to renounce or enjoy the transferred property or the (26 CFR, Part 86) to sections 1 and 3 of or disclaim within a reasonable time income thereof. (For description of Public Law 58 (82d Congress, 1st Ses­ after learning of its existence will be pre­ such transfers and the taxability thereof sion), apjproved June 28, 1951, relating sumed to constitute an acceptance of with reference to when made and when to taxability for purposes of the gift tax the power. the death occurred, see §§ 81.16 to 81.19, of property subject to a power of (iv) Successive powers, (a) Sectioninclusive.) appointment, such regulations are 811 (f) (4) provides that there shall be amended as follows: P ar. 4. Section 81.47a (d) is amended included in the gross estate of a decedent P aragraph 1. Section 452 of the Reve­ the value of any property with respect to as follows: nue Act of 1942 and all statutory provi­ which the decedent (1) by will, or (2) (A) By changing “811 (f) (3)” ap­ sions amending such section which by a disposition which is of such nature pearing at the end of the subparagraph precede § 86.1 are hereby deleted. that if it were a transfer of property (6) thereof to read “811 (f) (2)’’; and P ar. 2. There is inserted immediately owned by the decedent, such property (B) By changing the parenthetical preceding § 86.1 the following: would be includible in the decedent’s expression immediately at the end of the gross estate under section 811 (c ), exer­ subparagraph (6) thereof to read as fol­ Sec. 452. P owers o f appointment [reve­ nue ACT OF 1942, APPROVED OCTOBER 21, 1 9 4 2 ]. cises a power of appointment (whether lows: “ (See §81.24 (b) (2).)”. • * • * * or not a general power of appointment) Par. 5. Section 81.17, as amended by (b ) Powers with respect to which amend- created after October 21, 1942, by creat­ Treasury Decision 5936, approved Octo­ ments not applicable. ing another power of appointment which ber 6, 1952, is further amended as fol­ * * * * • under the applicable local law can be lows: (2) The amendments made by this section validly exercised so as to postpone the (A ) By amending the last sentence of shall not become applicable with respect to vesting of any estate or interest in such paragraph (b) (2) to read as follows: a power to appoint created on or before the property, or suspend the absolute owner­ “Notwithstanding the foregoing rules, an date of enactment of this act, which is ex­ ship or power of alienation of such prop­ interest in property transferred by the ercisable in favor of the donee of the power, erty, for a period ascertainable without decedent is not includible in the gross his estate, his creditors, or the creditors of regard to the date of the creation of the estate under this paragraph if possession his estate, if at such date the donee of such first power. power is under a legal disability to release or enjoyment of the property was obtain­ such power, until six months after the (b) For purposes of the application able by any beneficiary during the de­ termination of such legal disability. For of section 811 (f) (4), the value of the cedent’s life through the exercise of a the purposes of the preceding sentence, an property subject to the second power of general power of appointment, as defined individual in the military or naval forces of appointment shall be considered to be in section 811 (f) (3), which was in fact the United States shall, until the termina- Wednesday, August 5, 1953 FEDERAL REGISTER 4603 tion of the present war, be considered under (iii) If (after the application of clauses (c) of the Internal Revenue Code treats a legal disability to release a power to (i) and (ii)) the power is a general power of as a taxable gift the exercise after De­ appoint. appointment and is exercisable in favor of cember 31, 1942, of a general power of * ' * * * . • such other person—such power shall be deemed a general power of appointment only appointment created on . or before P ublic L a w 58 (82d Congress), A pproved October 21, 1942. Those provisions also Ju n e 28, 1951 in respect of a fractional part of the property subject to such power, such part to be deter­ treat as taxable gifts the exercise after Be it enacted by the Senate and House of mined by dividing the value of such property December 31, 1942, of a general power of Representatives of the United States of by the number of such persons (including appointment, or the complete release America in Congress assembled, That this Act the possessor) in favor of whom such power after May 31, 1951, of a general power of may be cited as the “Powers of Appointment is exercisable. appointment created after October 21, Act of 1951”. ***** For the purposes of clauses (ii) and (iii) a 1942, and the exercise of a power of power shall be deemed to be exercisable in appointment created after October 21, Sec. 3. G ift tax— powers of appointment. favor of a person if it is exercisable in favor 1942, by the creation of another power (a) Section 1000 (c) of the Internal Reve­of such person, his estate, his creditors, or nue Code (relating to powers of appointment) of appointment. Specific rules appli­ the creditors of his estate. cable to certain powers created on or is hereby amended to read as follows : (4) Creation of another power in certain before October 21, 1942, are contained in (c) Powers of appointment— (1) Exercise cases. It a power of appointment created of general power of appointment created on after October 21, 1942, is exercised by creat­ subparagraph (4) of this paragraph, and or before October 21, 1942. An exercise of a ing another power of appointment which subparagraph (5) of this paragraph con­ general power of appointment created on or under the applicable local law can be validly tains the rules applicable to 'powers before October 21, 1942, shall be deemed a exercised so as to postpone the vesting of any created after October 21, 1942. Specific transfer of property by the individual pos­ estate or interest in the property which was rules relating to the exercise of powers sessing such power: but the failure to exer­ subject to the first power, or -suspend the created after October 21, 1942, by the cise such a power or the complete release of absolute ownership or power of alienation of creation of another power are contained such a power shall not be deemed an exercise such property, for a period ascertainable thereof. without regard to the date of the creation of in subparagraph (6) of this paragraph. If before November 1, 1951, or within the the first power, such exercise of the first Subparagraph (7) of this paragraph time limited by paragraph ( 2) of section power shall, to the extent of the property contains rules in respect of the exercise 452 (b) of the Revenue Act of 1942, as subject to the second power, be deemed a of a power after June 6,1932, and before amended, in cases to which such paragraph transfer of property by the individual January 1, 1943. is applicable, a general power of appointment possessing such power. (2) Power of appointment, (i) The created on or before October-21, 1942, shall (5) Lapse of power. The lapse of a power term “ power of appointment” includes have been partially released so that' it is no of appointment created after October • 21, longer a general power of appointment, the 1942, during the life of the individual all powers which are in substance and subsequent exercise of such power shall not possessing the power shall be considered a effect powers of appointment regardless be deemed to be the exercise of a general release of such power. The rule of the pre­ of the nomenclature used in creating the power o$ appointment. ceding sentence shall apply with respect to power and regardless of local property (2) Powers created after October 21, 1942. the lapse of powers during any calendar year law connotations. For example, if a The exercise of a general power of appoint­ only to the extent that the property which transfer in trust provides that a bene­ ment created after October 21, 1942, or the could have been appointed by exercise of ficiary may appropriate or consume the release after May 31, 1951, of such a power, such lapsed powers exceeds in value the principal of the trust, such power to shall be deemed a transfer of property by the greater of the following amounts: individual possessing such power. A dis­ (A ) $5,000, or consume or appropriate is a power of claimer or renunciation of such a power of (B) 5 per centum of the aggregate value appointment. Similarly, a power given appointment shall not be deemed a release of the assets out of which, or the proceeds to a. donee to alter, amend, revoke or of such power. / of which, the exercise of the lapsed powers terminate a trust is a power of appoint­ (3) Definition of general power of appoint­ could be satisfied. - ment. I f the community property laws ment. For the purposes of this subsection (b ) Date of creation of power. For the of a state confer upon the wife a power the term “general power of appointment” of testamentary disposition over prop­ means a power which is exercisable in favor purposes of this section a power of appoint­ of the individual possessing the power (here­ ment created by a will executed on or before erty in which she does not have a vested after in this paragraph referred to as the October 21, 1942, shall be considered a power interest she is considered as having a “possessor”), his estate, his creditors, or the created on or before such date if the person power of appointment. A power in the creditors of his estate; except that— ■ executing such will dies before July 1, 1949, possessor to remove or discharge a trus­ (A ) A power to consume, invade, or ap­ without having republished such will, by tee and appoint himself may be a power propriate property for the benefit of the codicil or otherwise, after October 21, 1942. (c) Effective date. The amendments made of appointment. On the„other hand, the possessor which is limited by- an ascertain­ mere power of management, investment, able standard relating to the health, educa­ by this section shall be effective as if made tion, support, or maintenance of the by section 452 (a) of the Revenue Act of or custody of assets exercisable in a fidu­ possessor shall not be deemed a general power 1942 on the date of its enactment (applicable ciary capacity whereby the holder of the of appointment. with respect to gifts made in the calendar power has no power to enlarge or shift (B) A power of appointment created on year 1943 and succeeding calendar years). any of the beneficial interests therein is or before October 21, 1942, which is exercis­ P ar. 3. Section 86.1, as amended by not a power of appointment. Further, able by the possessor only in conjunction Treasury Decision 5833, approved March the right in a beneficiary of an inter vivos with another person shall not be deemed a 8, 1951, is further amended as follows: trust to assent to a periodic accounting general power of appointment. thereby relieving the trustee from fur­ (C ) In the case of a power of appoint­ (A ) By striking the word “The” at the ment created after October 21, 1942, which beginning of the second sentence and ther accountability is not a power of is exercisable by the possessor only in con­ inserting in lieu thereof “In general, appointment if such right of assent does junction with another person— the” ; and not consist of any power or right to en­ (i) If the power is not exercisable by the (B) By striking from such second large the beneficial interests of any bene­ possessor except in conjunction with the sentence the portion beginning “releases, ficiary therein. creator of the power—such power shall not (ii) For the purposes of this section, be deemed a general power of appointment; before July 1, 1951”, and ending “Reve­ nue Act of 1942” , and inserting in lieu the term “power of appointment” does (ii) If the power is not exercisable by the not apply to a power reserved directly or possessor except in conjunction with a per­ thereof the following: “ releases before son having a substantial interest, in the June 1, 1951, of powers to appoint indirectly, by a donor upon a transfer, as property subject to the power, which is created after October 21, 1942, and re­ distinguished from a donated power of adverse to exercise of the power in favor of leases before November 1, 1951, of appointment received from another per­ the possessor—such power shall not be powers to appoint created on or before son. . See § 86.3 with respect to the tax­ deemed a general power of appointment. For ability of reserved powers. the purposes of this clause a person, who, October 21, 1942.” P ar. 4. Section 86.2 (b), as amended (iii) No provision of section 1000 (c) after the death of the possessor, may be pos­ or of this section is to be construed as in sessed of a power of appointment (w ith by Treasury Decision 5811, approved respect to the property subject to the pos­ October 5, 1950, is further amended to any way limiting the application of any sessor’s power) which he may exercise in his read as follows: other section of the Internal Revenue own favor shall be deemed as having an in­ Code or of the regulations in this part. terest in the property and such interest shall (b) Transfers under power of appoint­ For example, if under the terms of a be deemed adverse to such exercise of the ment— (1) In general. Subject to the trust A is given the income for life and possessor’s power; rules prescribed hereinafter, section 1000 the power to appoint the entire trust 4604 PROPOSED RULE MAKING property by deed during her lifetime to appointment. See subparagraph (3) joint powers, see subdivision (ii) of this a class consisting of her children and the of this paragraph for definition of a subparagraph. further power to appoint the entire trust general power of appointment. The (ii) Joint powers created after October property by will to anyone including her failure to exercise such a power or the 21,1942. The following rules shall apply estate. and A exercises the inter vivos complete release at any time of such with respect to a power of appointment power in favor of her children, she is a power is not deemed to be an exercise created after October 21, 1942, which is considered to effectuate a transfer of her thereof. An' exercise which concur­ exercisable only in conjunction ^ith an­ income interest which constitutes a tax­ rently carries with it a complete relin­ other person. able gift under section 1000 (a). This quishment of a power of appointment or (a) Such a power shall not be consid­ transfer also results in a relinquishment an exercise followed by a complete re­ ered as a general power of appointment of her general power to appoint the linquishment of the power of appoint­ if it is not exercisable by the possessor property by will. In case the power was ment is deemed an exercise and not a except with the consent or joinder of created after October 21, 1942, such a release. I f a general power of appoint­ the creator of the power. transfer, if occurring after May 31,1951, ment is partially released so that it is (b) Such a power shall not be consid­ constitutes a taxable gift under section not thereafter a general power,of ap­ ered as a general power of appointment 1000 (c). pointment, a subsequent exercise of such if it is not exercisable by the possessor (iv) Where a power of appointment partially released power shall not be except with the consent or joinder of a exists as to only part of an entire group deemed the exercise of a general power person having a substantial interest in of assets or only in respect of a limited of appointment if such partial release the property subject to the power which interest in property, this section shall „occurs prior to whichever is the later of is adverse to the exercise of the power in apply only to such part or interest. the following dates: , favor of the possessor, his estate, his (v) A power of appointment is exer­ (a) November 1, 1951; creditors, or the creditors of his estate. cised where the property subject thereto (b) I f the decedent was under a legal A taker in default of appointment has an is appointed to the taker in default of disability to release such power on interest which is adverse to such an ex­ appointment, regardless of whether or October 21, 1942, the day after the ex­ ercised A coholder of the power has no not the appointed interest and the inter­ piration of six months following the ter- adverse interest merely because of his est in default are identical, and regard­ -mination of sueh disability. joint possession of the power nor merely less of whether or not the appointee because he is a permissible appointee un­ renounces any right to take under the. However, if the general power is par­ tially released on or after November 1, der a power. However, a coholder of a appointment. power is considered as having an adverse (3) general power of appointment. 1951 (except where such partial release is effected within the period of six interest wherehe may possess the power (i) For the purposes of this section the after the possessor’s death and may exer­ term “general power of appointment,” months following the termination of the legal disability referred to in the pre­ cise it at that time in favor of himself, except as limited hereinafter, means any his estate, his creditors, or the creditors power of appointment exercisable in ceding sentence), and is thereafter ex­ ercised, such exercise will constitute the of his estate. Thus, for example, if X, favor of the person possessing the power Y, and Z hold a power jointly to appoint (referred to as the “possessor” ), his exercise of a general power of appoint­ ment. among a group of persons which includes estate, his creditors, or the creditors of themselves and on the death of X the his estate. A power of appointment ex­ (ii) The legal disability referred to is determined under local law and may in­ power will pass to Y and Z jointly, then ercisable to meet the estate tax, and Y and Z are considered to have interests any other taxes, debts and charges which clude the disability of an insane person, a minor, or an unborn child. The fact adverse to the exercise of the power in are enforceable against the possessor or favor of X. his estate is includible within the mean­ that the type of general power of ap­ pointment possessed by the holder of the (c) A power which is exercisable only ing of a power of appointment exer­ in conjunction with another person and cisable in favor of the possessor, his power actually was not generally releas­ able under the local law does not place which after application of the rules set creditors, his estate or the creditors of forth in (a) and (b) of this subdivision, his estate. A power of appointment the possessor under a legal disability within the meaning of this subdivision. constitutes a general power of appoint­ exercisable for the purpose of discharg­ ment will be treated as though the ing a legal obligation of the possessor or (iii) In general, it is assumed that all general powers of appointment are re­ holders of the power who are permissible for 'his pecuniary benefit is considered appointees of the property were joint a power of appointment exercisable in leasable unless the local law on the sub­ ject is to the contrary, and it is presumed owners of property subject to the power. favor of the possessor or his creditors. The possessor, under this rule, will be that the method employed to release the (ii) A power to consume, invade, or treated as possessed of a general power appropriate property for the benefit of power is effective, unless it is not in ac­ cordance with local law relating specifi­ of appointment over an aliquot share of the possessor which is limited by an as­ the property to be determined with refer­ cally to release or, in the absence of such certainable standard relating to health, ence to the number of joint holders, local law, is not in accordance with local education, support or maintenance, shall including the possessor, who (or whose law governing similar transactions. not be deemed a power of appointment. estates of creditors), are permissible ap­ (iv) For purposes of section 1000 (c ), Whether a power is limited by an ascer­ pointees. Thus, for example, if X, Y, a power to appoint created by a will ex­ tainable standard will be ■determined by and Z hold an unlimited power jointly to ecuted on or before October 21,1942, shall applying the principles followed in as­ appoint among a group of persons, in­ certaining the extent to which, if any, be considered a power created on or be­ fore such date if the person executing cluding themselves, but on the death of a transfer to a trust for private and X the power does not pass to Y and Z charitable purposes is allowable as a such will died before July 1,1949, without jointly, then Y and Z are not considered deduction under section 1004 (a) (2). having republished such will by codicil to have interests adverse to the exercise A power to consume, invade, or appro­ or otherwise, after October 21,1942. of the power in favor of X. In this priate property for comfort, pleasure, (5) General powers of appointmentcase, X is considered to possess a general desire or happiness is not a power limited created after October 21, 1942— (i) In power of appointment as to one-third of by an ascertainable standard. general. Under section 1000 (c) (2), the the property subject to the power. (4) General powers of appointment exercise of a general power of appoint­ (iii) Releases and lapses of general created on or before October 21, 1942. ment created after October 21, 1942, or powers of appointment, (a) The gen­ (i) In the case of a general power of the release of such a power after May eral principles set forth in § 86.3 (a) for appointment created on or before 31, 1951, if such exercise or release is determining whether a donor of prop­ October 21,1942, section 1000 (c) applies erty has divested himself of the prop­ only if the power is exercised. Section made without adequate and full consid­ eration in money or money’s worth, con­ erty to the extent necessary to effect a 1000 (c) (3) (B) provides that a power completed gift are applicable in deter­ created on or before October 21, 1942, stitutes a gift by the possessor of the mining whether a partial release of a which is exercisable by the possessor power. For definition of a general power power of appointment constitutes a tax­ only in conjunction with another person, of appointment, see subparagraph (3) able gift. Thus, if a general power of shall not be deemed a general power of of this paragraph. For treatment of appointment is partially released so that Wednesday, August 5, 1953 FEDERAL REGISTER m s

thereafter the donor may still appoint istence will be presumed to constitute an interested persons prior thereto, a public among a limited class of persons not acceptance of the power. rule making proceeding was conducted including himself such partial release (6) Successive powers. Section 1000 on July 20, 1953 in which interested per­ does not effect a completed gift, since (c) (4) provides for the imposition of sons were afforded an opportunity to the possessor of the power has retained gift tax on the value of property With present both oral and written data, the right to designate the ultimate bene­ respect to which a power of appointment views and arguments relative to the sus­ ficiaries of the property over which he (whether or not a general power) created pension of those provisions of the order holds the power and since it is only the after October 21, 1942, is exercised by as amended, regulating the handling of termination of such control which com­ creating another power of appointment milk in the New York metropolitan milk pletes a gift. If a general power of which under the applicable local law can marketing area (7 CFR Part 927), here­ appointment created after October 21, be validly exercised so as to postpone the inafter referred to as the “order,” which 1942, is partially released prior to June 1, vesting of any estate or interest in the provide for the use of the Boston 1951, so that thereafter it is no longer property which was subject to the first weighted average cream price and of a general power of appointment, the power, or suspend the absolute owner­ published prices for spray process nonfat subsequent exercise or release thereof ship or power of alienation of such prop­ dry milk solids in computing the mini­ will not constitute the exercise or release erty, for a period ascertainable without mum price established for Class m milk. of a general power of appointment for regard to the date of the creation of the Provisions of the Agricultural Market­ purposes of gift tax. I f a general power first power. For purposes of section 1000 ing Agreement Act of 1937, as amended created after October 21, 1942, is par­ (c) (4), the value of the property sub­ (7 U. S. C. 601 et seq., and hereinafter tially released after May 31, 1951, the ject to the second power shall be con­ referred to as the “act”), require sus­ subsequent exercise or release thereof sidered to be such value unreduced by pension or termination of a provision of will constitute the exercise or release any precedent or subsequent interest an order whenever it is found that the of a general power of appointment for which is not subject to such second operation of such provision obstructs or purposes of gift tax. power. Thus if a donor has a power to does not tend to effecuate the declared (b) In general, a release of a power appoint $100,000 among a group con­ policy of the act. Consideration of the of appointment, need not be formal or ex­ sisting of his children or grandchildren data, views and arguments presented in press in character. For example, the and during" his lifetime exercises such this proceeding, together with other rele­ failure to exercise a power of appoint­ power by making an outright appoint­ vant information does not reveal an ade­ ment created after October 21, 1942, ment of $75,000 and by giving one ap­ quate basis for such a finding with within a specified time, so that the power pointee a power to appoint $25,000, no respect to the provisions of the order lapses, constitutes a release of the power. more than $25,000 will be considered a involved in this proceeding. Accordingly, However, section 1000 (c) (5) provides gift under section 1000 (c) (4). If, how­ the petitions for suspension of such pro­ that such a lapse shall be considered as ever, the donor appoints the income from visions are denied. a release so as to be subject to gift tax the entire fund to a beneficiary for life The order provisions sought to be sus­ only to the extent that the property with power in the beneficiary to appoint pended were adopted on the basis of evi­ which could have been appointed by ex­ the remainder, the entire $100,000 will be dence presented at public hearings at ercise of the power exceeds the greater considered a gift under section 1000 (c) which full consideration was given to the of (1) $5,000, or (2) 5 percent of the (4) if the exercise of the second power question of pricing Class II I milk. The aggregate value at the time of the lapse can validly postpone the vesting of any data, views and arguments presented in of the assets out of which, or the pro­ estate or interest in such property or can this proceeding may indicate the desir­ ceeds of which, the exercise of the lapsed suspend the absolute ownership or power ability of a new hearing to review opera­ powers could be satisfied. Thus, for ex­ of alienation of such property for a tion of the entire Class HI pricing ample, if an individual has a noncumu- period ascertainable without regard to formula and to consider the need for its the date of the creation of the first power. lative right to withdraw $10,000 a year revision, but they do not justify findings (7) Exercise of certain powers after from the principal of a trust fund, the and conclusions contrary to those made failure to exercise this right of with­ June 6, 1932, and before January 1, 1943. The exercise of a power of appointment on evidence in the record of public hear­ drawal in a particular year will not con­ ings on which the present formula is after June 6, 1932, and before January stitute a gift if the fund at the end of based. such year equals or exceeds $200,000. 1, 1943, constitutes a gift by the individ­ ual possessing the power if the power is There has been no showing of circum­ However, if at the end of the particular stances or conditions constituting an year the fund should be worth only exercisable in favor of any person or per­ sons in the discretion of such individual, emergency of a nature requiring imme­ $100,000, the failure to exercise the power diate reduction in the minimum price will be considered a gift to the extent of or, however limited as to the persons or objects in whose favor the appointment established for Class in milk'. The sea­ $5,000, the excess of $10,000 oyer 5 per­ son of highest production is now past. cent of -a fund of $100,000.* Where the may be made, if it is exercisable in favor of the • individual possessing the powdr, The volume of pool milk is now declining failure to exercise the power, such as seasonally. The best available estimates the right of withdrawal, occurs in more his estate, his creditors, or the creditors of his estate. of production indicate that the seasonal than a single year, the value of the tax­ decline this year will be greater than in able transfer will be determined sepa­ P ar . 5. Section 86.3 (a) is amended by 1952. Unless production in the months rately for each year. inserting in subparagraph (2) (iii) of November and December of this year (c) A disclaimer or renunciation of a thereof immediately preceding “ power exceeds the current estimates, the volume general power of appointment is not con­ of appointment” the word “general.” of Class IH milk in those months will be sidered to be a release of the power. The [P. R. Doc. 53-6845; Piled, Aug. 4, 1953; less than a year ago by an amount disclaimer or renunciation must be . un­ 8:56 a. m.] greater than the total quantity of Class equivocal and effective under local law. H I milk which in November and Decem­ A disclaimer is a complete and unquali­ ber 1952 was utilized ijn the manufacture fied refusal to accept the rights to which DEPARTMENT OF AGRICULTURE of butter and cheese. Under such cir­ cumstances the possibility that producers one is entitled. Such rights refer to the Production and Marketing incidents of the power and not to other will be without a market or that handlers interests of the possessor of the power in Administration will experience extreme difficulty in the disposition of Class in milk appears the property. I f effective under local I 7 CFR Part 927 ] relatively remote. law, the power may be disclaimed or Action to reduce the price of Class II I renounced without disclaiming or re­ H a n d l in g o p M i l k i n N e w Y o r k M etro­ p o l it a n M i l k M a r k e t in g A rea milk at this time could readily result in nouncing such other interests. There unnecessarily reducing the return to can be no disclaimer or renunciation of NOTICE OP DENIAL OP PETITIONS FOR SUSPEN­ producers. The prospective prices for a power after its acceptance. In the SION OP CERTAIN PROVISIONS Class H I milk were not shown to be too absence of facts to the contrary, the fail­ Pursuant to notice published in the high in relation to prices paid to farmers ure to renounce or disclaim within a F ederal R egister on July 15, 1953 (18 at unregulated plants for milk used for reasonable time after learning of its ex- F. R. 4143), and notice otherwise given to manufacturing. It was argued that use No. 152------3 *4606 PROPOSED RULE MAKING

of the Boston weighted average cream nomic and marketing conditions which Federal Food, Drug, and Cosmetic Act price creates so much uncertainty as to relate to the handling of milk for the (secs. 401, 701, 52 Stat. 1046, 1055; 21 what the Class in price will be in rela­ Chicago, Illinois, marketing area and to U. S. C. 341, 371; 67 Stat. 18), notice is tion to alternative sources of supplies of the proposed amendments to the tenta­ hereby given that a public hearing will be butterfat for ice cream that outlets for tive marketing agreement as heretofore held commencing at 10 o’clock in the Class I I I milk for use in ice cream prob­ approved by the Secretary of Agricul­ morning of September 15, 1953, in room ably could not be maintained after Au­ ture and to the order, as amended, regu­ 5542, Health, Education, and Welfare gust 1, with the result that more Class lating the handling of milk in the said Building, 330 Independence Avenue SW., I I I milk would be forced into butter thus marketing area set forth herein below, Washington, D. C., for the purpose of reducing the return to producers. or modifications thereof. Consideration receiving evidence upon proposals to “While such a result may be conceivable, will be given also to the question of amend the regulations fixing and estab­ it appears rather unlikely under present whether such conditions require emer­ lishing definitions and Standards of iden­ circumstances. gency action with respect to any or all tity for chocolate liquor (21 CFR 14.2), In 1952 the Class I I I price increased 34 amendments deemed necessary as the breakfast cocoa (21 CFR 14.3), sweet cents from July to August, 22 cents of result of the hearing. The amendments chocolate (21 CFR 14.6), and milk choc­ which increase was the result of using proposed have not received the approval olate (21 CFR 14.7) by repealing the pro­ ¡Jthe Boston weighted average cream of the Secretary of Agriculture. visions of these regulations that make price in computation of the Class III The following amendments have been coumarin an optional ingredient of these price. Even though the total volume proposed by the Associated Milk Dealers, foods. o f Class H I milk declined from 250 mil­ Inc.; Baldwin Cooperative Creamery At the hearing evidence will be re­ lion pounds in July to 223 million pounds et al.; Central Dairy Sales Cooperative, stricted to testimony and exhibits rele­ in August, the volume of milk used for Inc.; and the Pure Milk Association: vant and material to such proposals. Cream outside the marketing area, plain Proposal No. 1. Amend § 941.52 (a) The hearing will be conducted in ac­ condensed milk, cream cheese and ice (3) and (b) (3) so that the application cordance with the rules of practice pro­ ¿cream increased slightly from July to of such subparagraphs would be based on vided therefor. Mr. Leonard D. Hardy August (143.1 million to 144.8 million), the supply and demand for milk in the is hereby designated as presiding officer the volume used for concentrated whole Chicago area. to conduct the hearing in place of the milk products (other than Cheddar Proposal No. 2. Amend § 941.52 (a) Secretary, with full authority to admin­ cheese) declined only slightly (from 31.9 (3) and (b) (3) by deleting the months ister oaths and affirmations and to do to 29.1 million pounds), the volume used of September and October for the year all other things appropriate to the con­ for butter increased only 2 million 1953. duct of the hearing. The presiding of­ pounds (from 12.4 to 14.2 million)* and Proposal No. 3. The following amend­ ficer is required to certify the entire the volume of milk used for Cheddar ment has . been proposed by the Dairy record of the proceeding to the Secretary cheese declined nearly 20 million pounds Branch, Production and Marketing Ad­ for initial decision. (from 38.5 to 18.7). The smaller vol­ ministration: The proposed amendments for con­ ume used for Cheddar cheese accounted Make such other changes as may be sideration at the hearing are subject to for substantially all of the reduction required to make the entire marketing adoption, rejection, or modification by from July to August in the volume of agreement and order conform with any the Secretary of Health, Education, and Class in milk. amendments thereto that may result Welfare, in whole or in part, as the evi­ Compared with a year earlier the vol­ from this hearing. dence adduced at the hearing may ume of Class II I milk in August 1952 was Copies of this notice of hearing and of require. the said order as amended, may be pro­ up 3 percent, yet the volume of milk Dated: July 30, 1953. going into butter and cheese declined cured from the Market Administrator, from 52.3 million pounds in August 1951 73 West Monroe Street, Chicago 3, Illi­ [ s e a l ] O veta C u l p H o b b y , to 32.8 million in August 1952. In terms nois, or from the Hearing Clerk, Room Secretary. of percentages of total Class m milk, 1353, South Building, United States De­ partment of Agriculture; Washington 25, [P. R. Doc. 53-6803; Piled, Aug. 4, 1953; the decline was from 24.2 in August 1951 8:47 a. m .] to 14.7 in August 1952. D. C„ or may be theré inspected. Issued at Washington, D. C., this 30th Dated:“ July 30, 1953. day of July 1953. CIVIL AERONAUTICS BOARD [ s e a l] G eorge A. D ic e , [ s e a l ] .. T rite D. M or se, Acting Assistant Administrator. [ 14 CFR Part 41 ] Acting Secretary of Agriculture. [P. R. Doc. 53-6846; Piled, Aug. 4, 1953; C ertification and O pe r a tio n R u l e s for 8:57 a. m.] IP. R. Doc. 53-6807; Filed, Aug. 4, 1953; S c h ed u led A ir C arrier O p e r a tio n s 8:48 a. m.] O u t sid e C o n t in e n t a l L im it s o f DEPARTMENT OF HEALTH, EDU­ U n it e d S tates CATION, AND WELFARE spe c ia l c iv il air r e g u l a t io n ; f l ig h t [ 7 CFR Part 941 ] TIME LIMITATIONS FOR PILOTS NOT REG­ Food and Drug Administration ULARLY ASSIGNED TO ONE TYPE OF CREW [Docket No. AO 101-A15] [ 21 CFR Part 14 ] Pursuant to authority delegated by the M i l k i n t h e C h ic a g o , I l l in o is , . Civil Aeronautics Board to the Bureau [Docket No. FDC-26 (a) ] M a r k e t in g A rea of Safety Régulation, notice is hereby PROPOSED AMENDMENTS TO TENTATIVELY C acao P r o d u c ts; D e f in it io n s and given that the Bureau will propose to APPROVED MARKETING AGREEMENT AND TO S tandards o f I d e n t it y the Board an extension of the authority granted by Special Civil Air Regulation ORDER, AS AMENDED, REGULATING HANDLING n o t ic e o f h e a r in g SR-386 as hereinafter set forth. Pursuant to the provisions of the Ag­ In the matter of amending the defini­ Interested persons may participate in ricultural Marketing Agreement Act of tions and standards of identity for choc­ the making of the proposed rule by sub­ 1937, as amended (7 U. S. C. 601 et seq.), olate liquor, chocolate, baking chocolate, mitting such written data, views, or and the applicable rules of practice and bitter chocolate, cooking chocolate, choc­ arguments as they may desire. Com­ procedure governing the formulation of olate coating, bitter chocolate coating; munications should be submitted in marketing agreements and marketing breakfast cocoa, high-fat cocoa; sweet duplicate to the Civil Aeronautics Board, orders (7 CFR Part 900), notice is hereby chocolate, sweet chocolate coating; milk attention Bureau of Safety Regulation, given of a public hearing to be held at chocolate, sweet milk chocolate, milk Washington 25, D. C. In order to in­ the Hotel LaSalle, Madison and LaSalle chocolate coating, sweet milk chocolate sure their consideration by the Board Streets, Chicago, Illinois, begin n in g coating: before taking further action on the pro­ 10:00 a. m., c. d. s. t„ on August 11, 1953. Upon the initiative of the Secretary of posed rule, communications must be re­ The hearing is for the purpose of re­ Health, Education, and Welfare and in ceived by September 4, 1953. Copies of ceiving evidence with respect to eco- accordance with the provisions of the such communications will be available Wednesday, August 5, 1953 , FEDERAL REGISTER 4607 after September 8,1953, for examination without additional flight time limitation flight crew member, shall be governed by interested persons at the Docket if he flies not more than 20 hours in the by the provisions of § 41.55. Section of the Board, Room 5412, type of crew to which the more restric­ 4. A pilot to whom the provisions of Department of Commerce Building, tive flight time limitations apply and if paragraphs 2 and 3 are not applicable, Washington, D. C. such assignment isjnot interrupted more assigned to duty aloft for a total of 20 Special Civil Air Regulation SR-386 than once during such month. hours or less within a given month in which terminates September 19, 1953, Accordingly it is proposed to extend two-pilot crews with or without addi­ provides authority whereby a pilot may for one year the authority granted by tional flight crew members, shall be gov­ serve in more than one type of flight Special Civil Air Regulation SR-386 to erned by the provisions of § 41.56. crew without incurring any penalty in read as follows: 5. A pilot assigned to each of two- terms of maximum permissive flight 1. Contrary provisions of § 41.57 of the pilot, two-pilot and additional flight duty. This authority has heretofore Civil Air Regulations notwithstanding, crew member, and three-pilot and addi­ been provided for an experimental pe­ the following rules shall apply to the tional üight crew member crews in a riod with a view to the establishment monthly and quarterly flight time limi­ given month, who is not governed by the of permanent rules for such crew tations of pilots assigned in combinatipns provisions of paragraph? 2, 3, or 4, shall assignments. • of two-pilot crews, two-pilot and addi­ be governed by the provisions of § 41.55. The Civil Aeronautics Administration tional flight crew member crews, or This regulation shall terminate one has informed the Bureau that the regu­ three-pilot and additional flight crew year from its effective date unless sooner lation is a desirable one and not subject member crews. superseded or rescinded by the Board. to abuse. It therefore recommends that 2. A pilot who is assigned to duty aloft This regulation is proposed ùnder the the authority granted by SR-386 be con­ for more than 20 hours in two-pilot crews authority of Title VI of the Civil Aero­ tinued and that it be incorporated in in a given month, or whose assignment nautics Act of 1938, as amended. The Part 41. Certain scheduled air carriers in such crews is interrupted more than proposal may be changed in the light of have also asked that the authority be once in the month by assignment to a comments received in response to this incorporated in Part 41. However, the crew consisting of two or more pilots notice of proposed rule making. Bureau considers, since a proposed and an additional flight crew member, (Sec. 205, 52 Stat. 984; 49 U. S. C. 425. In ­ major revision of Part 41 is expected to shall be governed by the provisions of terpret or apply secs. 601—610, 52 Stat. 1007— be published shortly, that it would be § 41.54. 1012; 49 U. S. C. 551-560) more advisable to extend the authority 3. Except for a pilot coming within Dated: July 30, 1953, at Washington, the provisions of paragraph 2, a pilot granted by SR-386 and incorporate the D. C. changes in the proposed revision of Part who is assigned to duty aloft for more 41 when published. than 20 hours in two-pilot and addi­ By the Bureau of Safety Regulation. This regulation will not allow evasion tional flight crew member crews in a [ s e a l ] J o h n M. C h a m b e r l a in , of the stricter limitations applicable to given month, or whose assignment in Director. smaller crew combinations, but will allow such crews is interrupted more than once assignment of a pilot in any given month in a month by assignment to a crew con­ [P. R. Doc. 53-6831; Piled, Aug. 4, 1953; to another type of crew combination sisting of three pilots and an additional 8:53 a. m.]

NOTICES

partment of Commerce, to Charles Gold­ DEPARTMENT OF THE TREASURY POST OFFICE DEPARTMENT berg, individually, and doing business Bureau of Customs R e s u m p t io n o f C. O. D. S er vice t o and as Asiatic Export Co., and Ernest L. F r o m G u a m Jacob, the then export manager of said . [417.381] company. The charging letter was Effective August 1, 1953, collect-on- C e r t a in C a t a ly s t s thereafter amended on October 28, 1952, delivery service to and from Agana, by the addition of another charge TARIFF CLASSIFICATION Guam, will be resumed. against the named respondents. After (R. S. 161, 396, 398, as amended, secs. 304, J u l y 31, 1953. receiving said charging letter, as 309, 42 Stat. 24, 25; 5 U. S. C. '22* 369, 372) The Bureau by its letter to the acting amended, said respondents conferred by and through their respective counsel collector of customis at New York, New [ s e a l ] R oss R i z l e y , with officials of the Office of Interna­ York, dated July 31, 1953, ruled that Solicitor. tional Trade and thereafter submitted to catalysts consisting of mixtures com­ [F. R. Doc. 53-6285; Filed, Aug. 4, 1953; the Office of International Trade, with posed primarily of nickel oxide and 8:53 a. m.] the advice of and through such counsel, earthy material, or iron and aluminum statements dated April 16,1953, and July silicates and oxides, lead oxide, and zinc 21, 1953, respectively, admitting, for the oxide are properly classifiable as articles DEPARTMENT OF COMMERCE purposes of this compliance proceeding or wares composed wholly or in chief Office of International Trade only, the charges in said charging letter, value of mineral substances, not deco­ as amended, waiving all rights to a hear­ rated, under paragraph 214, Tariff Act [Case No. 154] ing thereon, and consenting to the entry of 1930, following T. Ds. 33858 and 49202. of an order, the terms of which are set As this ruling will result in the assess­ C h ar les G oldberg e t a l . forth below. ment of duty at a higher rate than has ORDER REVOKING LICENSES AND DENYING The charges to which the said re­ heretofore been assessed under an estab­ EXPORT PRIVILEGES spondents have entered their consents lished and uniform practice, it shall be In the matter of Charles Goldberg, in­ as aforesaid are that, they violated the applied to such or similar merchandise Export Control Act of 1949, as amended, only when entered, or withdrawn from dividually, and d/b/a Asiatic Export Co., 15 West 39th Street, New York, New and the regulations issued thereunder in warehouse, for consumption after 90 substance as follows: In connection with days from the date of publication of an York; Ernest L. Jacob, 86 Fort Washing­ ton Avenue, New York 32, New York; the commodities of secondary tinplate abstract of this decision in a forthcoming and silicon steel sheets, and in pur­ issue of the weekly Treasury Decisions. Respondents. Compliance proceedings were insti­ suance of orders received from company [SEAL] D. B. STRUBINGER, tuted on December 12,1951, by the trans­ agents in South America for the expor­ Acting Commissioner of Customs. mission of a charging letter issued by tation of such commodities to South [P. R. Doc. 53-6843; Piled, Aug. 4, 1953; the Investigation Staff of the Office of American customers respondents (a); 8:55 a. m.] International Trade, United States De­ misrepresented the end-use statements 4608 NOTICES on twelve applications filed with the Office of International Trade by inde­ of respondents Asiatic Export Co., Office of International Trade between pendently soliciting the aforesaid letters Charles Goldberg, or Ernest L. Jacob, January and June 1951, (b) sought to from the company’s South American or any of them, or any person, firm, duplicate an application filed with the agents, respondent Jacob’s supervision corporation, or other business organiza­ Office of International Trade on June 19, of the company’s operations was found tion with „which they, or any of them, 1951, without disclosing such fact, by to be inadequate to the needs of the are now related by ownership, control, filing on July 6,1951, a request to amend growing and rapidly expanding business. position of responsibility, or other con­ a license previously issued to them by In this connection, the Compliance Com­ nection in the conduct of trade involving changing the named consignee thereon missioner has made the finding that re­ exports from the United States or serv­ to the consignee specified on the pend­ spondent Jacob permitted the company ices connected therewith, are revoked ing application, misrepresenting the in­ to be undermanned and inadequately and shall be returned forthwith to the tended end-use of the commodity in­ staffed with inexperienced personnel, Office of International Trade for can­ volved in such amendment request, and failed to exercise proper supervision and cellation. submitting in connection therewith and control of the routine activities relating (2) The above-named respondents, as purported evidence of the availability to export control regulations and re­ and each of them, are hereby denied of such commodity, evidence of avail­ quirements, and allowed the company’s and declared % ineligible to exercise the ability which had been previously sub­ files and filing system to be maintained privileges of participating directly or mitted to the Office of International in such condition that information of the indirectly in any manner or capacity in Trade in support of a wholly unrelated availability of steel sheets and other com­ the exportation of any commodity from application, and (c) for the purpose of modities for export, as well as other th'e United States to any foreign destina­ giving the appearance of authenticity to material information and data essential tion, including Canada. Without lim­ the end-use representations made by re­ for licensing purposes, were not accessible itation of the generality of the foregoing spondents on the applications in (a) for disclosure when the necessity arose denial of export privileges, participation hereinabove in order to divert responsi­ to inform the Office of International in an exportation is deemed to include bility from themselves in an investiga­ Trade of the facts. and prohibit respondents’ participation tion by the Office of International Trade While the Compliance Commissioner (a) as a party or as a representative of then under way, respondents sought, and has properly found and his report shows a party to any validated export license obtained, in June and July 1951, letters that the company and its owner, Charles application, (b) in the obtaining or using from their agents in South America Goldberg, as well as the responsible of­ of any validated or general export license which in substance confirmed the ficial, must be held responsible for these or other export control document, (c) validity of such end-use representations actions, he has pointed out certain ex­ in the receiving in any foreign country and submitted such letters to the Office tenuating factors in this case, in addi­ of any exportation from the United of International Trade investigators as tion to his conclusion that, except for States, and (d) in the financing, for­ purported evidence of their good faith, the exculpatory letters obtained and used warding, transporting, or other servicing although the statements in such letters by Jacob, the violations here were not of exports from the United States. were wholly false to the knowledge of wilful or intentional. (3) Such denial of export privileges respondents. When Charles Goldberg, the head of shall extend not only to the named re­ It appears from the record that the the company, was informed of this case, spondents, and to Intra-American Steel letters submitted to respondents by he took steps to relieve the respondent Company (another concern owned by re­ their agents, as aforesaid, were made employee of his position in charge of ex­ spondent Charles Goldberg), but also without understanding the true nature ports, and re-assigned him to other posts to any person, firm, corporation, or other of respondents’ solicitations or the pur­ removed from responsibility for the con­ business organization with which they, pose for which such letters were to be duct of its export functions as they re­ or any of them, may be now or hereafter used by respondents, and merely as an late to Office of International Trade related by ownership, control, position of accommodation to respondents. regulations and requirements; respond­ responsibility, or other connection in the The record shows further that as a ent Jacob later left the employ of Asiatic conduct of trade involving exports from result of the investigation and the alert­ Export Co. of his own volition. The com­ the United States or services connected ness of the Investigation Staff in un­ pany has also reorganized its export therewith. covering the situation herein none of the operations, put^it in charge of a respon­ (4) This order shall extend for a pe­ above-described applications submitted sible, experienced official, revamped its riod of twelve (12) months from the by respondents were granted or exporta­ filing system, and taken other measures date of issuance: Provided, however,- tions thereunder effected. to assure compliance with the export With respect to respondent Ernest L. The charging letter, as amended, and control law and regulations in the future. Jacob that during the last three (3) the above-stated proposals for a con­ The Compliance Commissioner has also months of such period, and with respect sent order have been submitted to the pointed out that in making his recom­ to rèspondent Charles Goldberg, indi­ Compliance Commissioner for review, mendations he has taken into consider­ vidually and doing business as Asiatic and the Compliance Comfnissioner has ation the absence of any record Export Co., and to the aforerelated per­ also informally reviewed the evidence indicating prior export control violations sons and companies that during the last presented by the Investigation Staff in by respondents, the extensive export eleven (11) months of such period, the support of the charges as well as the business of Asiatic Export Co., and the export privileges which are denied by the extenuating circumstances claimed by requirement that the company surrender terms of this order shall be restored to the said respondents at conferences with to the Office of International Trade for them without further order of the Office counsel for the Office of International revocation a number of validated export of International Trade, but no validated Trade and with counsel for the respec­ licenses issued to and held by the com­ export licenses revoked under the order tive respondents, and he has found the pany, and a related company, represent­ shall thereby be restored. In the event, charges to be supported by the evidence ing a large dollar volume of current however, that any of the named respond­ and has also found the terms and condi­ business commitments. ents or the aforerelated persons and tions of the proposed order as consented The findings and recommendations of companies shall knowingly violate the to by the said respondents to be fair and the Compliance Commissioner have been terms of the denial order or any of the reasonable, and he has recommended carefully considered, together with the laws or regulations related to export con­ that such order be issued. charging letter, as amended, the evi­ trol during the entire period of such In his report the Compliance Commis­ dentiary material, and the proposals for order, the Office of International Trade sioner has made the finding that the a consent order. It appears therefrom may summarily and without notice to violations herein are primarily attrib­ that the Compliance Commissioner’s the person or company responsible for utable to the acts of respondent Ernest findings are in accordance with the such violation, at such time as it shall L. Jacob, the official then responsible for evidence and that such recommendations determine that such violation occurred, establishing the policies and maintaining are reasonable and should be adopted. issue a supplemental order which shall the practices relating to the company’s Now, therefore, it is ordered as follows: deny to such person or company all ex­ export operations. In addition to at­ (1) All outstanding validated export port privileges for the said period of the tempting to obscure the facts from the licenses held by or issued in the names order which has been held in abeyance Wednesday, August 5, 1953 FEDERAL REGISTER 4609 with respect to him or it, and shall re­ FEDERAL COMMUNICATIONS amendment to the order of designation it voke all validated licenses then outstand­ be found legally qualified. To support its ing and as to which said person or COMMISSION request, Mobile refers to an amendment company may be a party, without [Docket Nos. 10457, 10458] to its application containing a certificate thereby limiting the Office of Interna­ of the Secretary of State of Alabama W KRG-TV, I n c ., and M o b il e T e l e v is io n tional Trade from taking such other and stating that on January 9, 1953, Mobile, further action based on such violation ^ C o r p . a Louisiana corporation, qualified in the as it shall deem warranted. m e m o r a n d u m o p in io n a n d order d e le t in g State of Alabama. No opposition to the (5) No person, firm, corporation, or is s u e motion has been filed. It appears that other business organization shall know­ In re application of W KRG-TV, Inc., this applicant is now legally qualified, ingly apply for or obtain any license, and the order of designation should be shipper’s export declaration, bill of Mobile, Alabama; Docket No. 10457, File No. BPCT-690; The Mobile Television modified as requested. lading, or other export control document Legal qualifications of WKRG. 4. The relating to any exportation from the Corporation, Mobile, Alabama, Docket No. 10458, File No. BPCT-990; for tele­ third matter to be considered is Mobile’s United States under validated and gen­ request that the Commission’s finding, eral export licenses, or finance, service, vision construction permits. Preliminary statement. 1. We have contained in the order of designation, transport, forward or receive any com­ before us for consideration several ques­ that W K R G -TV is legally qualified be modities ¡thereunder, to or for the named tions relating to the enlargement or stricken and that- a hearing issue be respondents, or any of them, or Intra- amendment of the hearing issues in the added “To determine whether the grant­ American Steel Company, or any person, above-entitled proceeding. A list of the ing of the application of WKRG-TV, Inc., firm, corporation, or other business or­ pleadings relating to these questions is to construct, own, and operate a tele­ ganization covered by paragraph (3) set forth in the footnote below.1 Before vision broadcast station in Mobile, Ala­ above, without prior disclosure of such entering into a discussion of these mat­ bama, .and the application of * * * facts to, and specific authorization from, ters, a brief background statement is Giddens and Rester Radio, to assign its the Office of International Trade. necessary. license to W KRG -TV, Inc., * * * would Dated: July 31, 1953. Background. 2. The instant proceed­ result in a violation of the Commission’s ing is a comparative one involving the Rules and Regulations or policies, or J o h n C. B o r t o n , mutually exclusive application of Mobile both, with respect to multiple ownership Assistant Director of “ broadcast stations.” The substance for Export Supply. Television Corporation (Mobile) and W KRG-TV, Inc. (W K R G ), for construc­ of Mobile’s contention is that if the [F. R. Doc. 53-6870; Filed, Aug. 4, 1953; tion permits for new commercial televi­ W KRG-TV application is granted and if, 8:57 a .m.] sion broadcast stations on Channel 5 in thereafter, the applications for assign­ ment of licenses for W KRG AM and FM Mobile, Alabama. W KRG-TV, Inc., is the successor, insofar as this proceeding is granted, there would result a violation FEDERAL CIVIL DEFENSE is concerned, to the original applicant, of the multiple ownership rule for broad­ ADMINISTRATION a partnership doing business as Giddens cast stations because there would be and Rester. The partnership has an in­ common ownership or control of W KRG S ecr etar y o f A g r ic u lt u r e or H is terest in the corporation and remains as AM and FM with WABB and W ABB- D e s ig n e e licensee of broadcast Stations W KRG FM, all located in Mobile. The basis of the common ownership or control claim d e l e g a t io n o f c e r t if y in g a u t h o r it y for and WKRG-FM, as well as of a remote is that approximately 22 percent of the c o u n t ie s or pa r is h e s i n areas deter pick-up station. An application is on ­ stock of W KRG-TV, Inc., is owned by m in e d BY THE PRESIDENT TO BE MAJOR file to assign these three stations, all lo­ members and associates of a Mobile law DISASTER AREAS UNDER PUBLIC LAW 875, cated in Mobile, to W KRG-TV, Inc., firm and that other members and asso­ WHEN OPERATING UNDER PUBLIC LAW 115 contingent upon a grant of the Corpora­ tion’s TV application. No action has ciates, or relatives thereof, own approxi­ 1. Pursuant to the authority vested in been taken on this assignment applica­ mately 2 percent of the shares of stock me by Public Law 875, 81st Congress, tion. The competing TV applications of The Mobile Press Register, Inc., which 2d Session, as amended, and section 5 of were designated for comparative hear­ is the licensee of WABB and WABB-FM. Executive Order 10427 dated January 16, ing on April 21,1953; a pre-hearing con­ It appears from the record that none of 1953, there is hereby delegated to the ference was held on May 25, 1953. those persons who hold stock in The Secretary of Agriculture, with his con­ Legal qualifications of Mobile. 3. The Mobile Press Register hold any position sent, the authority of prescribing, delin­ first question to be considered is that of as officer, director or employee in that eating and certifying counties, parishes Mobile’s legal qualifications. In the or­ company. or other political subdivisions or portions der of designation Mobile was not found 5. W K R G -TV and the Commission’s thereof contained in such major disaster to be legally qualified and a hearing issue Broadcast Bureau oppose the request. areas as determined by the President to determine whether this applicant “is The former, in addition to setting forth the facts concerning the stock ownership, under Public Law 875, 81st Congress, 2d authorized to construct, own and operate a television broadcast station in Mobile, argues that there would be no violation Session; for the purpose of performing of the duopoly rule where the ownership the functions prescribed in sections (b) Alabama” was specified. Mobile requests that this issue be stricken and «.that by in the Press Register consists of only a and (d) of Public Law 115, 83d Congress, 2 percent passive stock interest not rep­ 1st Session; which amends section 2 of 1 Mobile Motion to Strike Issue and Amend resented in management, operation or Public Law 38, 81st Congress, 1st Session Order, filed May U, 1953; W K R G-TV, Inc., control. The Broadcast Bureau con­ (63 Stat. 43) t Response to said Motion, filed May 14, 1953; tends that the allegations of common 2. The authority herein delegated may Mobile Motion to Amend Order, Enlarge control are not substantiated and that be redelegated to any officer or employee Issues, etc., filed May 8, 1953; W K R G-TV, “ the ownership of stock by business as­ Inc., Opposition to said Motion, filed May sociates, of and by itself [does not] raise of the Department of Agriculture. 18, 1953; Mobile Reply to said Opposition, 3. This delegation of authority be­ any presumption of common ownership.” filed May 20, 1953; Mobile Motion to Amend 6. After careful examination of the comes effective July 31,1953. Order and'Enlarge Issues, filed May 11, 1953; Mobile Correction to said Motion, filed May pleadings and after a re-examination of V a l P e t e r so n , 13, 1953; WKRG-TV, Inc., Opposition to said the facts relating to common ownership, Administrator, Federal Civil Motion, filed May 22, 1953; Broadcast Bureau we are of the opinion that there is no Defense Administration. Comments to Mobile Motions to Amend and rteed for the addition of the issue re­ Enlarge, filed May 27, 1953; WKRG-TV, Inc., Consented to; quested by Mobile or for deletion of the further Opposition, filed June 5, 1953; Mo­ finding that W KRG-TV, Inc., is legally bile Reply to further Opposition, filed June 9, E. T . B e n s o n , 1953; Mobile Correction to Reply to further qualified. Whether or not we were per­ Secretary of Agriculture. Opposition, filed June 12, 1953; and suaded to add the hearing issue re­ [F. R. Doc. 53-6852; Filed, Aug. 4, 1953; WKRG-TV, Inc., Answer to Reply to further quested, we would, under our established 9:11 a. m .] Opposition, filed June 11, 1953. policy, be constrained to deny the request 4610 NOTICES for deletion of the finding that WKRG- be construed to preclude the filing, at 10:00 a. m., September 9, 1953, in Syra­ TV, Inc., is legally qualified. Multiple some later date, of petitions to amend cuse, New York. ownership is not an element of legal the issues shoiild facts appear which Released: July 30, 1953. qualification; legal qualification refers to would indicate the existence of that de­ the specified statutory requirements gree of common ownership and control F ederal C ommunications precedent to the issuance of a license. which would be in conflict with our rules C o m m i s s i o n , See WGAL, Inc., 9 Pike and Fischer R R and policies. [ s e a l ] T. J. S l o w ie , Secretary. 110. 4 \ 10. On July 23,1953, Mobile filed a pe­ 7. However, the issue requested by tition to withdraw its aforementioned [F. R. Doc. 53-6820; Filed, Aug. 4, 1953; Mobile could be added were there any Motion to Amend Order, Enlarge Issues, 8:52 a. m.] basis for so doing. We can find none in etc. (relating to financial qualifications the record and pleadings before us. It of WKRG), filed on May 8, 1953. Ac­ is not contended by Mobile that the same cordingly, said motion may be dismissed persons own stock in both W KRG -TV, without further consideration here. [Docket Nos. 10575, 10576] Conclusion. 11. In view of all of the Inc., and The Mobile Press Register. S o u t h e r n B roadcasting C o ., I n c ., and foregoing, It is ordered, This 28th day The claim of common ownership is based S o u t h e r n enterprises upon the premise that because the stock­ of July 1953, that the motion of Mobile holders in the two companies are associ­ Television Corporation for amendment ORDER CONTINUING HEARING' ated in the practice of law or are related of the order of designation to delete the In re applications of Southern Broad­ to each other through family ties, they finding that W KRG-TV, Inc., is legally casting Co., Inc., Montgomery, Alabama, would act in concert, in privity, with the qualified and for enlargement of the Docket No. 10575, File No. BPCT-683; result that there would exist that degree hearing issues to make inquiry into a pos­ Woodley C. Campbell, et al. tr/as South­ of common ownership or control pre­ sible violation of our rules and policies ern Enterprises, Montgomery, Alabama, cluded by our rules and policies. We covering multiple ownership is denied; Docket No. 10576, File No. BPCT-1051; cannot agree that these associations and that the request of the Chief, Broadcast for construction permits for new tele­ relationships, particularly in view of the Bureau, for enlargement of the hearing vision stations. small amount of stock ownership and the issues to permit inquiry into the details The Commission has before it a peti­ absence of managerial control in The concerning elimination of common own­ tion by Southern Broadcasting Co., Inc., Mobile Press Register, create a presump­ ership between WKRG-TV, Inc., and The to continue the hearing from July 31, tion of common ownership and-control Mobile Press Register is denied ; and that 1953, for a period of 60 days. the motion of Mobile Television Corpora­ which would justify the addition of an The Broadcast Bureau has indicated issue on this point. In the absence of tion that the order of designation be that it does not object to a continuance any facts beyond those alleged by Mobile, amended to find it legally qualified and but does object to« the period. The we can find no sound reason for burden­ to delete Issue No. 1 concerning its au­ other applicant, Southern Enterprises, thority to construct, own and operate a ing the hearing record in this proceed­ has informed the Commission that it television broadcast station in Mobile, ing with evidence upon an issue the need plans to petition for the« dismissal of its for which is not apparent. The request Alabama, is granted; and application. must be denied. I t is further ordered, That the petition Upon a review of the grounds sub­ 8. There is one additional question in of Mobile Television Corporation for mitted by Southern Broadcasting Co., connection with the foregoing which re­ withdrawal of its “Motion to Amend Inc., it appears that a continuance is in Order and Motion to Enlarge the Issues mains to be considered. The Broadcast order. However, the period requested is Bureau, although opposing inclusion of or for Declaratory Ruling” filed May 8, excessive. the common ownership issue, contends 1953, is granted, and said pleading of In view of the foregoing, I t is ordered, that inquiry should be made into the de­ May 8,1953, is dismissed. This 29th day of July 1953, that the tails with respect to the elimination of Released : July 28, 1953. proceeding heretofore set to be heard on the common ownership which did but July 31, 1953, is continued until 10:00 no longer does exist between W KRG -TV F ederal C ommunications a. m., September 1, 1953. and The Mobile Press Register. The C o m m is s io n , common ownership which did in fact [ s e a l ] T. J. S l o w ie , Released: July 30, 1953. exist at one time was eliminated by the Secretary. F ederal C ommunications transfer of stock upon which such com­ C o m m is s io n , mon ownership rested, and it is the [F. R. Doc. 53-6824; Filed, Aug. 4, 1953; 8:52 a. m.] [ s e a l ] T. J. S l o w ie , Broadcast Bureau’s position that the Secretary. facts with respect to this disposition are [F. R. Doc. 53-6821; Filed, Aug. 4, 1953; pertinent to this case. The Bureau 8:52 a. m.] states that “evidence adduced pursuant [Docket No. 10569] to such an inquiry may be such as to dis­ qualify the applicant without respect to S y r a c u se B roadcasting C o r p. his application’s comparative merits.” [Docket Nos. 10598, 10599] No facts in support of the contention are ORDER SCHEDULING HEARING S outhwestern B e l l T e l e p h o n e C o . alleged nor are any reasons given why In re application of Syracuse Broad­ this inquiry is necessary or appropriate. casting Corporation (WNDR; WNDR- order a s s ig n in g m atter fo r h e a r in g Our review of the application suggests no FM ), Syracuse, New York, Docket No. In the. matter of the application of reason for the inquiry. Accordingly, 10569, File No. BR-1501 BRH-91; for the request must be denied. Southwestern ¿Bell Telephone Company, renewal of license. Docket No. 10598, File No. P-C-3279; for 9. We desire to make it clear that our At a session of the Federal Communi­ rulings on the requests relating to the a certificate under section 221 (a) of cations Commission held at its offices in the Communications Act. of 1934, as question of common ownership are not Washington, D. C., on the 29th day of to be construed so as to preclude the in­ amended, to acquire certain telephone July 1953; plant and property of the Southwestern troduction for comparative purposes of The Commission having under con­ proper evidence at the hearing directed States Telephone Company. sideration the above-entitled applica­ to concentration of control of the mass In the matter of the application of media of communication and other simi­ tion which was designated for hearing Southwestern Bell Telephone Company, on June 25,1953; and lar factors.* Neither are our rulings to Docket No. 10599, File No. P-C-3280; for It appearing, that no date was pre­ a certificate under section 221 (a) of viously scheduled .by the Commission in * At the Prehearing Conference the parties the Communications Act of 1934, as stipulated to the effect that such evidence the above-entitled proceeding; amended, to acquire certain telephone was admissible under the present hearing I t is ordered, That the hearing in the plant and property of A. S. Teeter, d/b issues. above-entitled proceeding be held at as Crowley Telephone Company. Wednesday, August 5, 1953 FEDERAL REGISTER 4611

The Commission having under con­ United States Standard Broadcast Sta­ American Regional Broadcasting Agree­ sideration applications filed by the tions, Mimeograph #48126, attached to ment Engineering Meeting, January 30, Southwestern Bell Telephone Company the “Recommendations of the North 1941” as amended. for certificates under section 221 (a) of the Communications Act of 1934, as U n it e d States amended, that the proposed acquisition Proposed date by Southwestern Bell Telephone Com­ Gall Location Power Sched­ Class Date of FCO of change or pany of certain telephone plant and letters (kw.) Antenna ule action commencement property of the Southwestern States of operation Telephone Company located in and around Pflugerville, Euless, and Caps, 690 kilocycles Texas, and of certain telephone plant WHYN— Springfield, Mass, (change in 1 DA-1 U m -B Immediately. and property of A. S. Teeter, d/b as the main studio from Holyoke, Mass.; no change in trans­ Crowley Telephone Company, located in mitter location). and around Crowley, Texas, will be of 610 kilocycles advantage to the persons to whom serv­ WSLS__ ■Roanoke, Va ...... _ 1 DA-2 U III-A Now in opera- ice is to be rendered and in the public tion w ith change in interest; daytime DA. It is ordered, This 28th day of July 990 kilocycles 1953, that pursuant to the provisions of W H X Y— Bogalusa, La. (assignment of call letters). section 221 (a) of the Communications 960 kilocycles Act of 1934, as amended, the above ap­ WWJ..... Detroit, Mich, (changes in 6 DA-N U III-A July 22,1953 July 22,1954. plications are assigned for public hear­ DA-N). ing in a consolidated proceeding for the 960 kilocycles purpose of determining whether each of WHAK-. 6 NDD III Now in opera- the proposed acquisitions will bfe of tion with advantage to the persons to whom serv­ increased ice is to be rendered and in the public power. interest; 970 kilocycles I t is further ordered, That hearing WERH — 6 NDD III Do. upon said applications be held at the offices of the Commission in Washington, 1930 kilocycles WHOL... Allentown, Pa. (delete as­ D. C., beginning at 10:00 a. m., on the signment). 20th day of August 1953, and that a copy WEEX-. 0.25 ND U IV July 22,1953 July 22,1954. f of this order shall be served upon the 1340 kilocycles Governor of the State of Texas, the KEAN Brownwood, Tex. (assign­ ment of call letters), Mayor of Pflugerville, Euless, Caps, and 1330 kilocycles Crowley, Texas, Southwestern Bell Tele­ WMEN-. Tallahassee, Fla. (change in phone Company, the Southwestern call letters from WFLR). WEAW-. Evanston, 111. (assignment States Telephone Company, A. S. Teeter, of call letters). d/b as the Crowley Telephone Company, and the Postmasters of Pflugerville, F ederal C ommunications C o m m is s io n , Euless, Caps, and Crowley, Texas. [ s e a l ] T. J. S l o w ie , I t is further ordered, That within five Secretary. days after receipt from the Commission [P. R. Doc. 53-6823; Piled, Aug. 4, 1953; 8:52 a. m.] of a copy of this order, the applicant herein shall cause a copy hereof to be published in a newspaper or newspapers FEDERAL POWER COMMISSION tion in the F ederal R egister on April 18, having general circùlation in the com­ 1953 (18 F. R. 2257). munities of Pflugerville, Euless, Caps, [Docket No. 0-2138] Applicant has requested that its ap­ and Crowley, Texas, and in the Counties K a n sa s -C olorado U t il it ie s , I n c . plication be heard under the shortened of Travis, Tarrant, and Taylor, Texas, procedure provided by § 1.32 (b) (18 CFR and shall furnish proof of such publica­ ORDER DENYING REQUEST FOR SHORTENED 1.32 (b) ) of the Commission’s rules of tion at the hearing herein. PROCEDURE AND FIXING DATE OF HEARING practice and procedure for noncontested Released: July 28, 1953. On March 29, 1953, Kansas-Colorado proceedings. Utilities, Inc. (Applicant), aTCansas cor­ The Commission finds; F ederal C ommunications poration having its principal place of (1) Good cause has not been shown C o m m is s io n , business at Lamar, Colorado, filed an for granting the request of Applicant [ s e a l ! T. J. S l o w ie , application for an order pursuant to that its application be heard under the Secretary, section 7 (a) of the Natural Gas Act, shortened procedure as provided by the [P. R. Doc. 53-6822; Piled, Aug. 4, 1953; directing Colorado Interstate Gas Com­ Commission’s rules of practice and pro­ 8:52 a. m.] pany (Coloradq Interstate) to establish cedure. physical connection of its transportation (2) It is necessary and appropriate for facilities with the facilities of Applicant, carrying out the provisions of the Natural and to sell to Applicant up to 5,000 Mcf Gas Act that a hearing be held as here­ [TJ. S. Change List No. 516] per day of natural gas during the months inafter provided and ordered. of May, June, July, August, September The Commission orders: U. S. S tandard B roadcast S t a t io n s and October of each year, beginning May (A) Pursuant to the authority con­ LIST OP CHANGES, PROPOSED CHANGES AND 1,1953. Applicant also requests that the tained in and subject to the jurisdiction CORRECTIONS IN ASSIGNMENTS Commission fix 12.5«* per Mcf as the conferred upon the Federal Power Com­ price for such gas. mission by sections 7, 15 and 16 of the Ju l y 22, 1953. On April 22, Colorado Interstate filed Natural Gas Act, and the Commission’s Notification under the provisions of its answer to said application in which it general rules and regulations, including Part in, section 2 of the North American states that it does not oppose the appli­ rules of practice and procedure (18 CFR, Regional Broadcasting Agreement. cation filed herein, but that it does deny Chapter I ) , a public hearing be held com­ This notification consists of a list of that the Commission may fix vthe rate at mencing August 24, 1953, at 10:00 a. m „ changes, proposed changes, and correc­ which Colorado Interstate would sell gas e. d. s. t., in the Hearing Room of the tions in Assignments of United States to Applicant. Federal Power Commission, 441 G Street Standard Broadcast Stations modifying Due notice of the filing of the applica­ NW., Washington, D. C., concerning the the Appendix containing assignments of tion has been given, including publica- matters involved in and the issues pre- 4612 NOTICES sented by the application and the answer The application is on file with the Com­ tially in the City of Kingsford, and con­ thereto filed in this proceeding. mission for public inspection. sisting of a dam about 845 feet long (B) Interested State commissions may composed of a powerhouse intake sec­ [ s e a l ] L e o n M . F u q u a y , tion, a gated spillway section, and two participate as provided by §§ 1.8 and 1.37 Secretary. (f) of the Commission’s rules of practice earth sections; a detached earth dike and procedure (18 CFR 1.8 and 1.37 (f ) ). [F. R. Doc. 53-6792; Filed, Aug. 4, 1953; about 313 feet long on the Michigan side 8:45 a. m.] of the river; a powerhouse containing Adopted: July 29,1953. three 3,200-horsepower turbines, each Issued: July 30, 1953. connected to a 2,400-kilowatt generator, and appurtenant facilities; and a pro­ By the Commission. [Project No. 2009] posed double circuit transmission line V ir g in ia E lectr ic a n d P o w e r C o . about three miles long, the hydraulic [ s e a l ] L e o n M . F u q u a y , head developed being 30 feet. Secretary. NOTICE OF APPLICATION FOR AMENDMENT OF Protests or petitions to intervene may LICENSE [F. R. Doc. 53-6795; Filed, Aug. 4; 1953; be filed with the Federal Power Commis­ 8:46 a. m.] J u l y 30,1953. sion, Washington 25, D. C., in accordance Public notice is hereby given that with the rules of practice and procedure Virginia Electric and Power Company, of of the Commission (18 CFR 1.8 or 1.10) Richmond, Virginia, has made applica­ on or before the 11 th day of September [Docket No. G-2214] tion for amendment of its license for 1953. The application is on file with the Commission for public inspection. C it ie s S er v ic e G as C o . Project No. 2009, pursuant to the provisions of the Federal Power Act [ s e a l ] L e o n M . F u q u a y , NOTICE OF APPLICATION (16 U. S. C. 791-825r), to be located Secretary. on Roanoke River in Halifax and JULY 30, 1953. Northampton Counties, North Carolina, [F. R. Doc. 53-6794; Filed, Aug. 4, 1953; Take notice that Cities Service Gas to install 4 turbines each rated at 35,000 8:46 a. m.] Company (Applicant), a Delaware cor­ horsepower and discharging into the poration having its principal place of project tailrace instead of 3 turbines business in Oklahoma City* Oklahoma, each rated at 37,000 horsepower and dis­ HOUSING AND HOME filed on July 16, 1953, an application for charging into the project tailrace and FINANCE AGENCY a certificate of public convenience and 1 turbine rated at 14,000 horsepower and necessity pursuant to section 7 of the discharging into the supply canal of the Office of the Administrator Natural Gas Act, authorizing the con­ existing Roanoke Rapids plant; to in­ O rganization D e s c r ip t io n , I n c l u d in g struction and operation of facilities stall 4 generators each rated at 25,000 D e le g a t io n s of F in a l A u t h o r it y ; P u b ­ subject to the jurisdiction of the Com­ kilowatts instead of 3 generators each l ic H o u s in g C ommissioner mission and described as follows: rated at 27,000 kilowatts and 1 generator Construct approximately 2.1 miles of rated at 10,000 kilowatts; to install a m e n d m e n t o f delegations o f a u t h o r it y 3-inch gas pipe line beginning at a point Taintor type spillway gates and provide t o ex er c ise c e r t a in responsibilities of connection with an existing 10-inch a drop gate to discharge low flows when VESTED IN THE HOUSING AND HOME FI­ gas pipe line in the Northwest Quarter the turbines are not operating, instead NANCE ADMINISTRATOR UNDER VARIOUS (NW V4) of Section 11, Township 34 of fixed roller type gates; and to install STATUTES South, Range 25 East, Cherokee County, individual remote control motor operated The delegations of final authority to Kansas, and extending east and south­ hoists on some of the gates and a travel­ the Public Housing Commissioner, pub­ east to a point in the Northwest Quarter ing hoist for operating the remaining lished under section IV (e) (1) (15 F. R. (NW of Section 2, Township 27 crest gates instead of a gantry crane on 369, 372), January 21, 1950, are hereby North, Range 34 West, Jasper County, the dam for lifting the crest gates. amended to read as follows: Missouri, and install meter station and Protests or petitions to intervene may appurtenant equipment at point of con­ 1. The Public Housing Commissioner is be filed with the Federal Power Com­ hereby authorized, -subject to the super­ nection in Jasper County, Missouri. mission, Washington 25, D. C., in accord­ Applicant proposes to construct and vision of the Housing and Home Finance ance with the rules of practice and pro­ Administrator: operate the described facilities for the cedure of the Commission (18 CFR 1.8 purpose of providing natural gas service a. To execute the powers and functions or 1.10) on or .before the 14th day of vested in the Administrator under the to Missouri Farmers Association, Inc. September 1953. The application is on for use in a fertilizer plant to be con­ provisions of Public Laws 781 and 849 file with the Commission for public (76th Cong.), as amended, and Public structed in the vicinity of Empire, Kan­ inspection. sas, 75 percent of the said natural gas Laws 9, 73, and 353 (77th Cong.), as to be used for fuel purposes and the re­ [ s e a l ] L e o n M . F u q u a y , amended, and of Title H of Public Law maining 25 percent to be used in con­ Secretary. 266 (81st Cong.), including the power to nection with the processing of raw ma­ [F. R. Doc. 53-6793; Filed, Aug. 4, 1953; make findings and determinations there­ terials into fertilizer. 8:46 a. m.] under, except the power to make trans­ The application recites that for 1953- fers to the War and Navy Departments 54, 1954-55, 1955-56, estimated annual under section 4 of Public Law 849, as volumes of 182;077 Mcf will be required; amended, and to make findings, under and that no natural gas will be delivered [Project No. 2131] section 313 thereof, that housing of a on peak days. temporary nature is still needed; and W is c o n s in M ic h ig a n P o w e r C o . and The estimated overall capital cost of powers and functions vested in the Ad­ K in g sf o r d C h e m ic a l C o . the facilities is $14,200 which will be ministrator as a result of Reorganization paid for from a cash advance by Mis­ NOTICE OF APPLICATION FOR LICENSE Plan No. 17 of 1950 (64 Stat. 1269) over souri Farmers Association, Inc. said and relative to those Public Works Proj­ J u l y 30, 1953. sum, however, to be returned to Missouri ects undertaken under Title n of Public Farmers Association, Inc. at the rate of Public notice is hereby given that Wis­ Law 849,' as amended, and equipment 5 cents per Mcf of gas delivered until consin Michigan Power Company, of therefor which are listed in the Appendix the total amount has been refunded. Milwaukee, Wisconsin, and Kingsford to this delegation or as said Appendix Chemical Co., of Iron Mountain, Michi­ may from time to time be amended; Protests or petitions to intervene may gan, have filed application under the be filed with the Federal Power Commis­ b. With respect to powers and func­ Federal Power Act (16 U. S. C. 791a-825r) tions delegated in subparagraph “ a” and sion, Washington, D. C .,in accordance for license for constructed water-power powers and functions otherwise vested in with the Commission’s rules of practice Project No. 2131 located on the Menomi­ the Commissioner by or pursuant to law, and procedure (18 CFR 1.8 or 1.10) on nee River in Florence County, Wisconsin, to execute the powers and functions or before the 19th day of August 1953. and Dickenson County, Michigan, par­ vested in-the Administrator pursuant to Wednesday, August 5, 1953 FEDERAL REGISTER 4613 the provisions of the First War Powers (8) N. C. 31—229—F, Wilmington, N. O.the Commission, Rule 73, persons other Act, 1941, the act of August 7,1946 (Pub. (Sewer facilities to serve PHA Project No. than applicants should fairly disclose Law 657, 79th Cong.), and the Contract N. C. 31027.) their interest, and the position they in­ Settlement Act of 1944, as such acts have Region IV tend to take at the hearing with respect been or may be amended, including the (0) Ohio 33—227—F, Windham, Ohio. to the application. Otherwise the Com­ power to make findings, determinations, (Sewer and water facilities to serve PHA mission, in its discretion, may proceed to and settlements thereunder; and Project No. Ohio 33049.) - investigate and determine the matters c. To redelegate any of the authority Region V involved in such application without fur­ herein delegated to and vested in the (10) Kans. 14-263-F, Sunflower Village, ther or formal hearing. I f because of Commissioner to such officers and em­ Kans. (Recreation facilities to serve PHA an emergency a grant of temporary re­ ployees of the Public Housing Adminis­ Project “Sunflower Village.”) lief is found to be necessary before the tration as he may select. (11) Wyo. 48-113-F Cheyenne, Wyo. (Fire expiration of the 15-day period, a hear­ 2. Any instrument or document exe­ station to serve PHA Project “Frontier Park ing, upon a request filed within that pe­ Villa.”) riod, may be held subsequently. cuted by the Public Housing Commis­ Region V I sioner, or by any officer or employee to By the Commission. whom the authority has been redele­ (12) La. 16-266-F, New Orleans, La. gated, purporting to relinquish or trans­ (Sewer facilities to serve PHA Project No. [ s e a l ] G eorge W. L aird, La. 16103.) Acting Secretary. fer any rights, title, or interest in or to Region V II real or personal property under the au­ [F. R. Doc. 53-6812; Filed, Aug. 4, 1953; thority of this delegation shall be con­ (13) Calif. 4-468—F, Vallejo, Calif. (One 8:48 a. m.] clusive evidence of the authority of such 500 gpm triple combination fire truck mounted on Ford chassis, including acces­ Commissioner, officer or employee to act sories. Serves PHA Project No. Cal. 4211.) for the Housing and Home Finance Ad­ (14) Calif. 4-628-F, Unit 1, Long Beach, ministrator in executing such instru­ Calif. (Nursery school to serve PHA Pro­ - [4th Sec. Application 28316] ment or document. ject No. Cal. 4790.) P h o s p h a t e R o c k F r o m F l o r id a to (15) Calif. 4-543—F, Alameda, Calif. 3. There are hereby transferred to the S o u t h e r n P o in t s Public Housing Administration, to be (School site only. Site acquired from PHA but not being used. Located at 1061 Stalker application for r e l ie f used and employed in connection with Way.) the powers and functions herein dele­ (16) Calif. 4—918-F, Vallejo, Calif. (Fire J u l y 31,1953. gated over and relative to the Public station located at 330 Rodgers Street, near The Commission is in receipt of the Works Projects and equipment listed in Sears Point Road in PHA Federal Terrace above-entitled and numbered applica­ the Appendix hereto (as it may from Projects No. Cal. 4083 and 4084, including tion for relief from the long-and-short- time to time be amended), the records three 500 gpm triple combination pumpers and accessories.) haul provision of section 4 (1) of the now being used or held by the Office of Interstate Commerce Act. the Administrator, Housing and Home Region VIII Filed by: R. E. Boyle, Jr., Agent, for Finance Agency, in connection with such (17) Mont. 24-106-F, Anaconda, Mont. Atlantic Coast Line Railroad Company Projects and equipment. (One 500 gpm pumper, including accessories and other carriers. (Reorg. Plan No. 3 of 1947, 61 Stat. 954 to serve PHA Project No. Mont. 24021.) Commodities involved; Phosphate (1947); 62 Stat. 1268, 1283-85 (1948), as (18) Oreg. 35-165—F, Astoria, Oreg. . (Sewer rock, slush and floats, and soft phos­ amended, 12 U. S. C., 1946 ed. Sup. V 1701c; facilities to serve PHA Project No. 35253.) phate, not acidulated nor ammoniated, 54 Stat. 1125, 1127 (1940), as amended, 42 (19) Wash. 45-257-F, Spokane, Wash. carloads. U. S. C., 1946 ed. 1544, 1545; 63 Stat. 440 (Sewer facilities to serve PHA Project No. (1949), 12 U. S. C., 1946 ed. Sup. V 1701d-l; 45035.) From : Points in Florida. 54 Stat. 1125 (1940), as amended, 42 U. S. C., To: Goldsboro, N. C., Greenwood, [F. R. Doc: 53-6804; Filed, Aug. 4, 1953; Miss., and Newport News, Va. 1946 ed, 1521, 1531 et seq.; 63 Stat. 377, 380 8:47 a. m.] (1949), as amended, 5 U. S. C., 1946 ed. Sup. Grounds for relief: Competition with V 630 b; Reorg. Plan No. 17 of 1950, 64 Stat. rail carriers, circuitous routes, to main­ 1260 (1950)) INTERSTATE COMMERCE tain grouping, to apply rates constructed Effective as of the 5th day of August on the basis of the short-line distance 1953. COMMISSION formula. [4th Sec. Application 28315] Schedules filed containing proposed [ s e a l] A lber t M . C o l e , rates; Atlantic Coast Line Railroad Housing and Home G y p s u m B a c k in g B oard B e t w e e n P o in t s Company tariff I. C. C. No. B-3232, supp. Finance Administrator. i n T exas 78 ; Seaboard Air Line Railroad Company Appendix Ap p l ic a t io n fo r r e lie f tariff I. C. C. No. A-8153, supp. 78. Any interested person desiring the PUBLIC WORKS PROJECTS UNDERTAKEN UNDER J u l y 31,1953. TITLE II OP PUBLIC LAW 849 (76TH CONG.), Commission to hold a hearing upon such AS AMENDED (SO-CALLED LANHAM ACT), AND The Commission is in receipt of the , application shall request the Commis­ EQUIPM ENT THEREFOR, RESPONSIBILITY FOR above-entitled and numbered applica­ sion in writing so to do within 15 days WHICH IS TRANSFERRED TO THE PUBLIC HOUS­ tion for relief from the long-and-short- from the date of this notice. As pro­ ING COMMISSIONER haul provision of section 4 (1) of the vided by the general rules of practice Region I I Interstate Commerce Act. of the Commission, Rule 73, persons Filed by: Lee Douglass, Agent, for other than applicants should fairly dis­ (1) Conn. 6-216-F, Windsor Locks, Conn. carriers parties to schedule listed below. close their interest, and the position (Sewer main connecting PHA Projects No. Commodities involved: Gypsum back­ they intend to take at the hearing with Conn. 6151, 6152, and 6081 to Windsor Locks sewer system.) ing board, laminated or not laminated, respect to the application. Otherwise (2) Maine . 17-146-F, South Portland, carloads. the Commission, in its discretion, may Maine. (Combined sewer to serve PHA Proj­ Between; Points in Texas. proceed to investigate and determine the ect No. Maine 17033.) Grounds for relief: Competition with matters involved in such application (3) N. Y. 30—210-F, Mineville, N. Y. (Water rail carriers, circuitous routes, to main­ without further or formal hearing. If and sewer facilities to serve PHA Project No. tain grouping, to meet intrastate rates, because of an emergency a grant of N. Y. 30102.) temporary relief is found to be necessary (4) Del. 7-108-F, Wilmington, Del. (Water rates based on short-line distance for­ facilities to serve PHA Project No. Del. 7035.) mula, additional commodity. before the expiration of the 15-day (5) Md. 18-153-F, Cabin John, Md. (Sewer Schedules filed containing proposed period, a hearing, upon a request filed facilities to serve PHA Projects No. Md. 18131 rates : Lee Douglass, Agent, tariff I. C. C. within that period, may be held sub­ and 18132.) No. 786, supp. 12. sequently. (6) Md. 18-205-F, Indian Head, Md. Any interested person desiring the By the Commission. (Sewer facilities to serve PHA Project No. Commission to hold a hearing upon such Md. 18272.) application shall request the Commis­ [ s e a l] G eorge W. L a ir d , (7) Md. 18-206-F, Indian Head, Md. sion in writing so to do within 15 days Acting Secretary. (Water line, electric power line, and access from the date of this notice. As pro­ [F. R. Doc. 53-6813; Filed, Aug. 4, 1953; road to serve PHA Project No. Md. 18272.) vided by the general rules of practice of 8:48 a. m.] No. 152- 4 4614 NOTICES

Claimant, Claim No., and Property SECURITIES AND EXCHANGE Notice is further given that any inter­ ested person may, not later than August Christian Marius Thon, Eidsfoss, Norway, COMMISSION 11,1953, at 5:30 p. m., submit to the Com­ Claim No. 40022, Vesting Order No. 672; prop­ erty described in Vesting Order No. 672 (8 [Pile No. 812-840] mission in writing any facts bearing upon the desirability of a hearing on the mat­ F. R. 5020, April 17, 1943) with respect to N a t io n a l S e c u r it ie s S e r ies an d N a t io n a l ter and may request that a hearing be United States Patent No. 2,266,131. S e c u r it ie s & R esearch C o r p. held, such request stating the nature of Executed at Washington, D. C., on NOTICE OF FILING FOR ORDER PERMITTING his interest, the reasons for such request July 29, 1953. and the issues, if any, of fact or law pro­ REDUCED PUBLIC OFFERING PRICES ON For the Attorney General. QUANTITY PURCHASES OF COMPANY SHARES posed to be controverted, or he may request that he be notified if the Com­ [ s e a l ] Ju l iu s S c h l e z in g e r , J u l y 30,1953. mission should order a hearing thereon. Acting Deputy Director, Notice is hereby given that National Any such communication or request Office of Alien Property. Securities Series (“National Series” ), a should be addressed: Secretary, Secu­ [F. R. Doc. 53-6835; Filed, Aug. 4, 1953; registered open-end diversified invest­ rities and Exchange Commission, 425 8:53 a. m.] ment company, and National Securities Second Street NW., Washington 25, D. C. & Research Corporation (“National Se­ At any time after said date, the applica­ curities”) , principal underwriter for the tion may be granted as provided in Rule shares of National Series, have filed an N-5 of the rules and regulations promul­ F iu g g in a a n d G in a S e r a f in i application pursuant to section 6 (c) of gated under the act. NOTICE OF INTENTION TO RETURN VESTED the Investment Company Act of 1940 By the Commission. (“ act” ) for an order of the Commission PROPERTY exempting from the provisions of section [ s e a l ] O rval L. D u B o is , Pursuant to section 32 (f ) of the Trad­ 22 (d) of the act the offering of National Secretary. ing With the Enemy Act, as amended, Series’ shares at reduced public offering [F. R. Doc. 53-6797; Filed, Aug. 4, 1953; notice is hereby given of intention to prices based on quantity purchases under 8:46 a. m.] return, on or after 30 days from the date the circumstances hereinafter described. of the publication hereof, the following National Series is currently offering property, subject to any increase or de­ shares of seven different series. Under DEPARTMENT OF JUSTICE crease resulting from the administration the offering, the sales charge is reduced thereof prior to return, and after ade­ for a quantity purchase but this applies Office of Alien Property quate provision for taxes and conserva­ to a single order for one series. The N yegaard & Co. tory expenses: reduced sales charges are as follows: NOTICE OF INTENTION TO RETURN VESTED Claimant, Claim No., Property, and Location PROPERTY Fiuggina Serafini, Fossombrone (Pesaro), Sales charge Italy; Gina Serafini, Fossombrone (Pesaro), Sales charge (percent of Pursuant to section 32 (f) of the (percent of net amount Italy; Claim No. 36274; $3,440.06 in the Amount of order offering placed in Trading With the Enemy Act, as Treasury of the United States, one-half price) trust prop­ amended, notice is hereby given of in­ thereof to each claimant. erty) tention to return, on or after 30 days The following securities in custody of the from the date of publication hereof, the Safekeeping Department of the Federal Re­ Up to $24,999______8 Vt 9.3 following property located in Washing­ serve Rank of NeW York, one-half thereof $25,000 to $49,999...... 5.8 to each claimant: 109 shares common stock $50^000 to $74,999...... 5 5.3 ton, D. C., including all royalties accrued $75,000 to $99,999...... 4H 4.7 of Republic Steel Corporation, Certificate $100,000 to $149,999...... 4 4.2 thereunder and all damages and profits No. 81664 for 4 shares, Certificate No. 392602 $150,000 to $499,999...... 3 3.1 recoverable for past infringement for 5 shares and Certificate No. 213640 for 100 $500^000 to $999,999...... 2 2.0 thereof, after adequate provision for shares. 20/100ths of one share Republic 1 1.0 taxes and conservatory expenses: Steel Corporation common stock-scrip cer­ tificate void after 12-21-54, No. S-255. Claimant, Claim No., and Property The applicants seek to permit a char­ Nyegaard & Co. A/S Sandakerveien 103, Executed at Washington, D. C., on itable, religious, educational, and other Vestre Aker, Oslo, Norway, Claim No. 35021; July 29, 1953. corporation, fund, or foundation exempt property described in Vesting Order No. 672 from taxation under section 101 (6) of (8 F. R. 5020, April 17, 1943), relating to For the Attorney General. the Internal Revenue Code and an em­ United States Letters Patent No. 2,134,256. [ s e a l ] J u l iu s S c h l e z in g e r , ployees’ trust and profit-sharing plan Acting Deputy Director, exempt from taxation under section 165 Executed at Washington, D. C., on July 29, 1953. Office of Alien Property. of the Internal Revenue Code, to cumu­ late purchases regardless of the number For the Attorney General. [F. R. Doc. 53-6836; Filed, Aug. 4, 1953; of series involved to obtain the benefit 8:54 a. m.] of the reduced sales charge set forth' [ s e a l ] J u l i u s S c h l e z in g e r , above, providing the purchaser has con­ Acting Deputy Director, tinued to hold the shares previously Office of Alien Property. F r a n z a n d T her esia B o h m acquired. [F. R. Doc. 53-6834; Filed, Aug. 4, 1953; Section 22 (d) of the act prohibits a 8:53 a. m.] NOTICE OF INTENTION TO RETURN VESTED registered investment company from PROPERTY selling its redeemable securities to any Pursuant to section 32 (f ) of the Trad­ person, other than a dealer or principal ing With the Enemy Act, as amended, underwriter, at a price less than the C h r is t ia n M a r iu s T h o n notice is hereby given of intention to current public offering price described in return, on or after 30 days from the NOTICE OF INTENTION TO RETURN VESTED the prospectus. Since the proposal setr date of the publication hereof, the fol­ PROPERTY forth above may result in varying prices lowing property, subject to any increase to members of the public of National Pursuant to section 32 (f) of the or decrease resulting from the adminis­ Series’ shares and may contravene the Trading With the Enemy Act, as tration thereof prior to return, and after policy, purposes and provisions of section amended, notice is hereby given of in­ adequate provision for taxes and con­ tention to return, on or after 30 days servatory expenses: 22 (d) of the act, applicants seek an order from the date of publication hereof, the Claimant, Claim No., Property, and Location of exemption under section 6 (c) of the following property located in Washing­ act to the extent necessary to permit the ton, D. C., including all royalties accrued Franz Bohm, Amstetten, Lower Austria; offering of such shares to charitable, thereunder and all damages and profits Theresia Bohm, a/k/a Theresa Bohm and as religious, educational, and other non­ Theresia Boehm, Amstetten, Lower Austria; recoverable for past infringement Claim No. 42788; $1,277.34 in the Treasury profit organizations on the basis thereof, after adequate provision for of the United- States; $1,277.33 in the Treas­ proposed. taxes and conservatory expenses: ury of the United States. Wednesday, August 5, 1953 FEDERAL REGISTER 4615

Claimant, Claim No., Property, and Location return, on or after 30 days from the date Executed at Washington, D. C„ on Thomas Slaby, St. Polten, Austria; Josef of publication hereof, the following prop­ July 29, 1953. Slaby, St. Polten, Austria; Adele Marschik, erty located in Washington, D. C., in­ For the Attorney General. also known as Adele Marschik and Adele cluding all royalties accrued thereunder Slaby, Sieghartskirchen, Austria; Bartholo- and all damages and profits recoverable [ s e a l] J ulitts S c h l e zin g e r , maeus Slaby, Sieghartskirchen Austria; Rosa­ for past infringement thereof, after ade­ Acting Deputy Director, lia Jurik, nee Slaby, Tulin, Austria; Claim quate provision for taxes and conserva­ Office of Alien Property. No. 44999; $11,000.22 in the Treasury of the United States, one-fifth thereof to each tory expenses: [P . R. Doc. 53-6837; Piled, Aug. 4, 1953; claimant. Claimant, Claim No., and Property ^ 8:54 a. m.] Executed at Washington, D. C., on Compagnie Generate d’Electro Ceramique, July 29, 1953. Paris, France, Claim No. 36629; property de­ scribed in Vesting Order No. 666 (8 F. R. 5047, For the Attorney General. April 17, 1943) relating to United States Let­ E l is a b e t h H aas e t a l . ters Patent No. 1,944,383. Property described J u l i u s S c h l e z in g e r , in Vesting Order No. 1028 ( 8 F. R. 4205, April NOTICE OF INTENTION TO RETURN VESTED Acting Deputy Director, 2, 1943), relating to United States Patent PROPERTY Office of Alien Property. Application Serial No. 252,235 (now United Pursuant to section 32 (f) of the [F. R. Doc. 53--6839; Filed, Aug. 4, 1953; States Letters Patent No. 2,318,401). Prop­ 8:54 a. m.] erty described in Vesting Order No. 2541 (8 Trading With the Enemy Act, as F. R. 16488, December 7, 1943), relating to amended, notice is hereby given of in­ United States Patent Application Serial No. tention to return, on or after 30 days 277,649 (now United States Letters Patent No. from the date of the publication hereof, 2,422,644). H olger B rudal the following property, subject to any Executed at Washington, D. C., on increase or decrease resulting from the n o t ic e o f i n t e n t io n to r e t u r n vested July 29, 1953. PROPERTY administration thereof prior to return, For the Attorney General. and after adequate provision for taxes Pursuant to section 32 (f) of the and conservatory expenses: Trading With the Enemy Act, as [ s e a l ] Ju l iu s S c h l e z in g e r , Acting Deputy Director, Claimant, Claim No., Property, and Location amended, notice is hereby given of in­ tention to return, on or after 30 days Office of Alien Property. Elisabeth Haas, Berlin, Germany, Claim from the date of publication hereof, the [F. R. Doc. 53-6842; Filed, Aug. 4, 1953; No. 37329; Dr. Lothar Weil, Munich, Ger­ following property located in Washing­ 8:54 a. m.] many, Claim No. 37363; Dr. Konrad Weil, ton, D. C., including all royalties accrued Frankfort on the Main, Germany, Claim No. thereunder and all damages and profits 40550; the following cash amounts in the recoverable for past infringement there­ Treasury Of the United States: $1,632.50 to of, after adequate provision for taxes and R o s in a T r em l e t a l . Elisabeth Haas, $1,606.03 to Dr. Lothar Weil conservatory expenses: and $1,631.45 to Dr. Konrad Weil. REVOCATION OF NOTICE OF INTENTION TO Claimant, Claim No., and Property RETURN VESTED PROPERTY Executed at Washington, D. C., on Holger Brudal, Strand, Berum by Oslo, It appearing that Claim No. 35579 as­ July 29, 1953. Norway, Claim No. 40020; Vesting Order No. 294; property described in Vesting Order No. serted by Maria Kolaska, which is pres­ For the Attorney General. 294 (7 F. R. 9840, November 26, 1942) with ently pending before this Office, is in [ s e a l ] J u l iu s S c h l e z in g e r , respect to patent application serial number conflict with Claim No. 15656, described Acting Deputy Director, 308,484 (now United. States Patent No. below, the Notice of Intention to Return Office of Alien Property. 2,313,010). Vested Property published in that mat­ Executed at Washington, D. C., on ter (17 F. R. 10841, November 29, 1952) [F. R. Doc. 53-6838; Filed, Aug. 4, 1953; is hereby revoked. 8:54 a. m.] July 29, 1953* Claimant, Claim No., and Property For the Attorney General. Rosina Treml, Steyr, Upper Austria; Anna [ s e a l ] J u l iu s S c h l e z in g e r , Riesenhuber, Garsten-Saming 33, near Acting Deputy Director, T h o m a s S l a b y et a l . Steyr, .Upper Austria; Thomas Holzmayer, Office of Alien Property. Garsten, Near Steyr, Upper Austria; Claim n o t ic e o f i n t e n t io n to r e t u r n vested No. 15656; $246.26 cash in the Treasury of the [F. R. Doc. 53-6841; Filed, Aug. 4, 1953; PROPERTY 8:54 a. m.] United States; $258.48 cash in the Treasury of the United States; $246.26 cash in the Pursuant to section 32 (f) of the Treasury of the United States. Trading With the Enemy Act, 4 as amended, notice is hereby given of. in­ Executed at Washington, D. C., on July 29, 1953. tention to return, on or after 30 days C o m p a g n ie G e n e r a le d ’E lectr o from the date of the publication hereof, CERAMIQUE For the Attorney General. the following property, subject to any in­ NOTICE OF INTENTION TO RETURN [ s e a l ] J u l iu s S c h l e z in g e r , crease or decrease resulting from the VEÿED PROPERTY Acting Deputy Director, administration thereof prior to return, Pursuant to section 32 (f ) of the Trad­ Office of Alien Property. and after adequate provision for taxes ing With the Enemy Act, as amended, [F. R. Doc. 53-6840; Filed, Aug. 4, 1953; and conservatory expenses: notice is hereby given of intention to 8:54 a. m.l