(e) deal with, complete, renovate, improve, modernize, insure, rent, or sell for cash or credit, upon such terms and conditions and for such consideration as the Secretary shall determine to be reasonable, any real property conveyed to or otherwise acquired by him in connection with the payment of loans granted under this title ; (f) pursue to final collection, by way of compromise or other administrative action prior to reference to the Attorney General, all claims against third parties assigned to the Secretary in connection with loans made by him. Section 3709 of the Revised Statutes, as amended (41 U. S. C. 5), shall not be construed to apply to any contract of hazard insurance or to any purchase or contract for services or supplies on account of property obtained by the Secretary as a result of loans made under this title if the premium therefor or the amount thereof does not exceed $1,000. The power to convey and to execute in the name of the Secretary deeds of conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written instrument relating to real property or any interest therein acquired by the Secretary pursuant to the provisions of this title may be exercised by the Secretary or by any officer or agent appointed by him for the purpose; (g) acquire, in any lawful manner, any property (real, personal, or mixed, tangible or intangible), whenever deemed necessary or appropriate to the conduct of the activities authorized in section 101 (a) (2) of this Act; and (h) in addition to any powers, functions, privileges, and immunities otherwise vested in him, take any and all actions, including the procurement of the services of attorneys by contract, determined by him to be necessary or desirable in making, servicing, compromising, modifying, liquidating, or otherwise administratively dealing with or realizing on loans made or securities or evidences of indebtedness acquired under the provisions of this title: Provided, That no attorney's services shall be procured by contract in any office where an attorney or attorneys are or can be economically employed full time to render such service. ADVISORY BOARD SEC. 112. To advise the Secretary in the performance of functions authorized by this Act, there is authorized to be created an Area Assistance Advisory Board, hereinafter referred to as the "Board", which shall consist of the following members, all ex officio: The Secretary, as Chairman; the Secretaries of Agriculture; Health, Education, and Welfare; Labor and Treasury, the Administrators of the Housing and Home Finance Agency and of the Small Business Administration. The Chairman may from time to time invite the participation of officials of other agencies of the executive branch interested in the functions herein authorized. Each member of the Board may designate an officer of his agency to act for him as a member of the Board with respect to any matter there considered. DEPOSITARIES AND AGENTS SEC. 113. The Federal Reserve banks are authorized and directed to act as custodians and fiscal agents for the Secretary in the general performance of the powers conferred by this title. Each Federal Reserve bank shall be entitled to be reimbursed for all expenses incurred as such fiscal agents. Any banks insured by the Federal Deposit Insurance Corporation, when designated by the Secretary of the Treasury, may act as custodians and depositaries for the Secretary. PENALTIES SEC. 114. With respect to financial assistance authorized by this Act: (a) Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Secretary, or for the purpose of obtaining money, property, or anything of value, under this Act, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. (b) Whoever, being connected in any capacity with the Secretary (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, secu rities, or other things of value, whether belonging to him or pledged or otherwise entrusted to him, or (2) with intent to defraud the Secretary or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Secretary makes any false entry in any book, report, or statement of or to the Secretary, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft bill of exchange, mortgage, judgment, or decree thereof, or (3) with intent to defraud participates, shares, receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Secretary, or (4) gives any unauthorized information concerning any future action or plan of the Secretary which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans or other assistance from the Secretaary shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. (c) As used in this section the term "Secretary" shall mean, with respect to the lending activities of the Housing and Home Finance Administrator authorized under this Act, the Housing and Home Finance Administrator. USE OF OTHER FACILITIES SEC. 115. (a) To avoid duplication of activities and minimize expense in carrying out the provisions of this Act, the Secretary shall, to the extent prac ticable and with their consent, use the available services and facilities of other agencies and instrumentalities of the Federal Government on a reimbursable basis. (b) Departments and agencies of the Federal Government shall exercise their powers, duties, and functions in such manner as will assist in carrying out the objectives of this Act. This Act shall be supplemental to any existing authority, and nothing herein shall be deemed to be restrictive of any existing powers, duties, and functions of any other department or agency of the Federal Gov ernment. CONSULTANTS. SEC. 116. The Secretary is authorized to obtain services as authorized by section 15 of the Act of August 2, 1946 (5 U. S. C. 55 (a)), at rates not to exceed $75 per diem for individuals. ANNUAL REPORT SEC. 117. The Secretary shall make a comprehensive annual report of his operations under this Act for the fiscal year ending on the preceding June 30, to the President, for transmission to the Congress as soon as practicable in each year, but in no case later than the third day of the following January. AUTHORIZATION FOR APPROPRIATIONS SEC. 118. In addition to appropriations specifically authorized by sections 106 and 108, appropriations are further authorized for the carrying out of other provisions and purposes of this Act. Hon, J. W. FULBRIGHT, DEPARTMENT OF AGRICULTURE, Chairman, Committee on Banking and Currency, DEAR SENATOR FULBRIGHT: This is in reply to your request of January 14, 1957, for a report on S. 104, a bill to assist areas to develop and maintain stable and diversified economies by a program of financial and technical assistance and otherwise, and for other purposes. The bill proposes to alleviate conditions of substantial and persistent unemployment in certain economically depressed areas by the Federal Government in cooperation with the States helping these areas to take effective steps in planning and financing their economic development. The assistance would take the form of research, technical assistance, and loans. Funds for research grants would be made available to State-supported institutions of higher learning. Authority for grants to the extent of $1,500,000 annually is provided. Authority is provided for area assistance and loans to the extent of $50 million for expenditures in connection with these loans. An advisory board is established composed of the following ex officio members: The Secretary of Commerce as chairman; the Secretaries of Agriculture, Treasury, Health, Education, and Welfare, and Labor; the Administrators of Housing and Home Finance Agency and Small Business Administration; and officials of such other agencies as shall be designated by the Secretary of Commerce. With minor exceptions, S. 104 is identical with S. 2892, 84th Congress, which was supported by the administration last year; S. 1433 is a revision of the earlier bill. It is suggested that S. 1433, on which we are making a separate report, be considered in connection with your review of S. 104. The Bureau of the Budget advises that S. 1433 is preferable to S. 104 and that the enactment of S. 1433 would be in accord with the program of the President. Sincerely yours, Hon. J. W. FULBRIGHT, TRUE D. MORSE, Acting Secretary. DEPARTMENT OF LABOR, Chairman, Committee on Banking and Currency, United States Senate, Washington, D. C. DEAR SENATOR FULBRIGHT: This is in further response to your request for my coments on S. 104, a bill to assist areas to develop and maintain stable and diversified economies by a program of financial and technical assistance and otherwise, and for other purposes. This bill, which is identical to S. 2892 in the 84th Congress, is a sound proposal for assisting areas of substantial and persistent unemployment. However, further study of the proposal has resulted in improvements which have been embodies in S. 1433. Therefore, I recommend approval of the latter bill, which is designed to carry out the President's area redevelopment program. The Bureau of the Budget advises that it has no objection to the submission of this report and that enactment of S. 1433 would be in accord with the program of the President. Sincerely yours, JAMES T. O'CONNELL, Acting Secretary of Labor. Hon. J. W. FULBRIGHT, DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, Chairman, Committee on Banking and Currency, United States Senate, Washington, D. C. DEAR MR. CHAIRMAN: This letter is in response to your request of January 14, 1957, for a report on S. 104, a bill "To assist areas to develop and maintain stable and diversified economies by a program of financial and technical assistance and otherwise, and for other purposes." Except for changes in dates and in the short title, S. 104 is identical with an administration proposal, S. 2892, 84th Congress, upon which we reported favorably to your committee by letter dated April 24, 1956. While we still endorse the provisions of this bill, particularly those relating to vocational training and Federal assistance to State vocational education agencies (sec. 102 (c)), we believe that S. 1433, 85th Congress, which embodies the administration's latest legislative proposal in this area, contains various improvements which we hope will be favorably considered by your committee. The Bureau of the Budget advises that it perceives no objection to the submission of this report to your committee. Sincerely yours, M. B. FOLSOM, Secretary. DEPARTMENT OF THE AIR FORCE, Hon. J. WILLIAM FULBRIGHT, OFFICE OF THE SECRETARY, Washington, D. C., May 23, 1957. Chairman, Commitee on Banking and Currency, United States Senate. DEAR MR. CHAIRMAN: Reference is made to your request to the Department of Defense for a report on S. 104, a bill to assist areas to develop and maintain stable and diversified economies by a program of financial and technical assistance and otherwise, and for other purposes. The Department of the Air Force has been assigned the responsibility for expressing the views of the Department of Defense. The proposed legislation provides, in substance, for Government assistance to areas of substantial and persistent unemployment by studies toward developing area potentialities, technical assistance in establishing new industries, development in industrial activities in rural areas to supplement agricultural activities, and the making of loans. The subject matter is not of direct concern to the Department of Defense and, therefore, this Department defers to the other departments of the Government directly concerned. The proposed legislation will have no budgetary effect insofar as the Department of Defense is concerned. This report has been coordinated within the Department of Defense in accordance with procedures prescribed by the Secretary af Defense. The Bureau of the Budget advises that there is no objection to the submission of this report. Sincerely yours, DUDLEY C. SHARP, Assistant Secretary of the Air Force. Hon. J. W. FULBRIGHT, EXECUTIVE OFFICE OF THE PRESIDENT, OFFICE OF DEFENSE MOBILIZATION, Chairman, Committee on Banking and Currency, DEAR SENATOR FULBRIGHT: This will reply to your requests for our views on S. 104 and S. 964, bills to provide Federal assistance to areas suffering substantial and persistent unemployment. We understand that since receiving your letters on ths subject, another bill to meet the same objectives, S. 1433, has been referred to your committee. In addition to its detrimental effect on the local and national economies, substantial unemployment can create a serious threat to the maintenance of segments of the mobilization base essential in time of war. When such a threat exists, certain mobilization authorities, such as military procurement, tax amortization incentives, etc., can be utilized to assist in relieving the situation. These are special purpose powers, however, and have only an indirect and limited usefulness to meet the problem of unemployment, generally. There are, of course, many unemployment problems which include little or no threat to the mobilization base and accordingly cannot be assisted by the use of mobilization powers. A program expressly designed to relieve substantial and persistent unemployment would do much to reduce the effect of such conditions upon the economic well-being of the Nation, including those segments of the mobilization base threatened by unemployment. While such a program would probably not completely eliminate the need for using mobilization powers in appropriate cases, it might well minimize their use by attacking directly those situations in which the problems of local unemployment and those of maintenance of the mobilization base, generally, coincide. We believe that this would be a desirable program from the viewpoint of defense mobilization as well as from that of the national economy, generally. We believe that the provisions of S. 1433 are best designed to accomplish these desirable objectives and we would favor its enactment. The Bureau of the Budget advises that enactment of S. 1433 is in accord with the program of the President. Sincerely yours, ARTHUR S. FLEMMING, Director. Hon. J. W. FULBRIGHT, COMPTROLLER GENERAL OF THE UNITED STATES, Chairman, Committee on Banking and Currency, United States Senate. DEAR MR. CHAIRMAN: Your letter of January 14, 1957, acknowledged January 15, requests a report on S. 104, which, if enacted, would be cited as the Area Assistance Act of 1957. The providing of financial and technical assistance to develop and maintain stable and diversified economies in certain areas is a matter of policy primarily for determination of the Congress and we have no recommendations to make on the merits of the bill. We do believe, however, that several changes in the language are desirable as indicated below: Sections 101 (a) and 106 of the bill would authorize the Secretary of Commerce "to make grants for technical assistance." The bill contains only extremely broad purposes for which the grants may be made. Almost any grant of funds would tend to "help areas of substantial and persistent unemployment to take effective steps in planning and financing their economic development"-one of the broad general purposes in section 2 of the bill-if the funds are expended in one of those areas. Consideration should be given to the necessity for giving the Secretary of Commerce such broad authority and flexibility in the administration of the program. One of the conditions set out in section 102 (a) (1) for certifying the existence of an area of substantial and persistent unemployment is that the unemployment rate has been "at least 8 percent for the major portion of each of the preceding 2 years." The term "major portion" is somewhat indefinite and might be expressed as a specific percentage. The use of the world "generally" in section 102 (a) (2) indicates that the It is not clear whether the word "assistance" as used in section 102 (b) in- The term "project area" as used in the proposed section 111 of title I of the Since there is presently a section 111 of title I of the Housing Act of 1949, as amended (section 307 of the Housing Act of 1956, Public Law 1020, 84th Cong. 70 Stat. 1091, 1101), the proposed section 111 in line 10, page 5, of the bill should be changed to section 112. We might also point out that while title I of the Housing Act of 1949 is applicable to the several States, the District of Columbia, and the Territories, dependencies, and possessions of the United States (42 U.S. C. 1460), this proposed legislation is applicable only to the several States, the District Columbia, and the Territories of Alaska and Hawaii (sec. 101 (c)). The reference to "Area Assistance Act of 1956 in section 104 (lines 14 and 15, p. 7) should be "Area Assistance Act of 1957." In the drafting of section 105 of the bill, no consideration was given to the amendments to section 701 of the Housing Act of 1954 contained in section 307 (d) of the Housing Act of 1956, 70 Stat. 1102). The purposes intended by section 105 could be accomplished by the following language: "SEC. 105. The second sentence of section 701 of the Housing Act of 1954, as amended, is further amended by adding the following in clause (2) after the words 'decennial census which': (i) are situated in areas designated by the Secretary of Labor under the Area Assistance Act of 1957 as areas of substantial and persistent unemployment or (ii).'" |