Nations. The United States is determined to develop and maintain whatever military and economic strength is found to be necessary to carry out this purpose. Under present circumstances, this task requires diversion of certain materials and facilities from civilian use to military and related purposes. It requires expansion of productive facilities beyond the levels needed to meet the civilian demand. In order that this diversion and expansion may proceed at once, and that the national economy may be maintained with the maximum effectiveness and the least hardship, normal civilian production and purchases must be curtailed and redirected. "It is the objective of this act to provide the President with authority to accomplish these adjustments in the operation of the economy. It is the intention of the Congress that the President shall use the powers conferred by this Act to promote the national defense, by meeting, promptly and effectively, the requirements of military programs in support of our national security and foreign policy objectives, and by preventing undue strains and dislocations upon wages, prices, and production or distribution of materials for civilian use, within the framework, as far as practicable, of the American system of competitive enterprise." Sincerely yours, JOSEPH C. DUGGAN, Assistant Attorney General, Executive Adjudications Division. PROPOSED EMERGENCY POWERS EXTENSION ACT-SUBJECT MATTER CLASSIFICATION This memorandum arranges according to subject matter the statutory provisions dealt with in the proposed Emergency Powers Continuation Act. The main categories used as the following: 1. Construction, procurement and sale 2. Government personnel 3. Compulsory service 4. Claims and claims procedure 5. Administrative procedures 6. Security 7. Housing 8. Transportation and shipping 9. Foreign relations Each statutory provision is briefly summarized under one (in one case two) of these categories. In the interest of brevity, the language limiting the authority to time of war or emergency is not summarized in most cases. CONSTRUCTION, PROCUREMENT AND SALES Acquisition and operation by the Navy of buildings and facilities in the procurement or construction of items authorized in connection with the prosecution of the war, without specific project authorization 1 (a) (1). Inspection of plants and books of war contractors 1 (a) (3). TVA products may be sold for use abroad only to the United States or its allies in case of war 1 (a) (2). Authority for Secretary of War to provide installations for manufacturing of military equipment and for storage and shelter; to exchange equipment; and to operate or dispose of plants 1 (a) (7). Freedom from certain restrictions in construction and procurement of land for purposes of the Armed Forces 1 (a) (8) part. Operating plantations abroad for supplying food to the Armed Forces 1 (a) (11). Payment (instead of gratuitous use) for use of wharves and landings under the control of the Territory of Hawaii 1 (a) (23). Adjustment of royalties for use of inventions in aid of prosecution of the war 1 (a) (33). GOVERNMENT PERSONNEL Detailing Armed Forces personnel to VA 1 (a) (5). Soldiers' deposits-repayment before final discharge 1 (a) (15). Entertainment and instruction of Army and Air Force enlisted personnel. 1 (a) (8) part Sales to civilians at naval stations and PX's within the United States when private services not available. 1 (a) (19) Status, discipline, and benefits. PHS-military status, military benefits, and allowance for uniforms. 1 (a) (9) Coast and Geodetic Survey-benefits for officers on duty with the Armed Injury or death from war risk hazard-compensation (civil employees of Allowance for uniform-Army and Air Force. 1 (a) (13) Voting by mail for Federal officials by members of the Armed Forces without poll-tax restrictions. 1 (a) (16) Disbursing officers may cash checks and change money for Armed Forces personnel. 1 (a) (21) Duty-free importation of personal and household effects of United States employees brought into the United States on Government orders. 1 (a) (22) Suspension of the peacetime provision (inoperative administratively since September 1939) permitting enlisted personnel in the Army and Navy to purchase their discharge. 1 (b) (4) and (5) Veterans' preferences (the bill provides that service during the emergency shall carry the same benefits as service during the war). Protection from loss of rights under the public land laws for those serving in the armed forces of allies. 1 (a) (24) Preference for loans in connection with improvement of farmhouses and buildings. 2 (b) (5) Preference as to federally owned housing available under title V of the Lanham Act. 2 (b) (6) Preference under the homestead and other land laws. 2 (b) (7) Preference with respect to lands within the Boulder Canyon project. 2 (b) (8) Preference as to farm loans and mortgage insurance. 2 (b) (9) Appointment and use of armed services personnel-suspension of peacetime restrictions. Reserve officers may be appointed to the ranks higher than second lieutenant and without certain requirements as to previous service. (1 (b) (1) Officers in active service may be detailed as ROTC instructors even though retired Army and Air Force personnel are available therefor as volunteers. 1 (b) (2) part Officers of the Naval Reserve or Marine Corps Reserve may be employed on active duty, with or without their consent, even later than 7 years after their commissioning and for any purpose. 1 (b) (3) Service flags and lapel buttons. 2 (b) (3) COMPULSORY SERVICE By discharged inductees. 1 (a) (6) On active duty, by retired officers of the Public Health Service. 1 (a) (34) CLAIMS AND CLAIMS PROCEDURE Composition of settlement commissions. 1 (a) (10) Proposed extension until 1 year after the end of the war, as determined by the President for these purposes, of the time limits for the filing of claims (not otherwise barred) by members of the Armed Forces for loss of personal property incident to their service (1 (d)); and claims (not otherwise barred), arising after the outbreak of hostilities in Korea, for injury to person or property caused by noncombat activities of the Armed Forces. (1 (e)) Prosoped barring of tort claims arising out of nonwartime (as well as wartime) combatant activities of the Armed Forces. 2 (b) (11) 98207-52-25 ADMINISTRATIVE PROCEDURES Destruction of records situated abroad. 1 (a) (4) Certification of pay and allowances of members of Armed Forces on officers' certificates without further evidence. 1 (a) (14). Use by VA of its automobiles to transport employees when public transportation not available. 1 (a) (20) Utilization of the American Red Cross in aid of the Armed Forces. 1 (a) (25) Crimes SECURITY Photographing military installations regardless of intent. 1 (a) (17) Delivering defense information with intent or reason to believe that it will be harmful to the United States or benefit a foreign nation (death or longer imprisonment in wartime). 1 (a) (31)—18 U. S. C. 794 Gathering or publishing certain information with intent that it be communicated to the enemy-death in wartime, not a crime in peacetime. 1 (a) (31)-18 U. S. C. 794 Injuring or damaging war materials or making defective war materials— greater penalties in wartime (30 years or $10,000 or both) than peacetime (10 years or $10,000 or both). 1 (a) (31)—18 U. S. C. 2153, 2154 Spreading false reports, when the United States is at war, with intent to interfere with the operation or success of the Armed Forces or to promote the success of the enemy. 1 (a) (31)—18 U. S. C. 2388 Entering and leaving the United States-Restrictions and prohibitions as to citizens and aliens. 1 (a) (32) HOUSING Authority to operate or reactivate existing Lanham Act housing projects and continuation of leases. 1 (a) (18) TRANSPORTATION AND SHIPPING Priority for troops and materials of war in transportation in time of war or threatened war. 1 (a) (26) Power of the President, in time of war, to assume control of transportation systems. 1 (a) (27) Authority of the ICC, in time of war or threatened war, on certification by the President, to establish preferences and priorities in transportation, 1 (a) (28) and with respect to freight forwarders. 1 (a) (29) Authority, until 6 months after termination of the present war, to purchase, charter, or requisition idle foreign merchant vessels in United States waters and to charter vessels without competitive bidding. 1 (a) (30) FOREIGN RELATIONS Neutrality Act-suspension of the prohibition on financial transactions by persons with foreign governments at war with each other. 1 (b) (6) Mr. FEIGHAN. Mr. Burrus, I believe you have Mr. Silver with you, who will testify today with reference to transportation? Mr. BURRUS. Yes, that is correct. We have two more transportation items that are closely related to the one that was last testified on by Assistant Secretary Bendetsen. The first is item 1 (a) (28). It is at the bottom of page 21 of the document. It is the authority of the Interstate Commerce Commission, upon certification by the President, to establish preferences and priorities in transportation in time of war or threatened war. The reason that this authority is needed is for situations that might be short of threatened war. Mr. Silver will be our witness, and he will also testify on item 1 (a) (29), which is on the top of the next page, 22; and that is the same authority as applied to freight forwarders. They are related acts. STATEMENT OF FRANCIS A. SILVER, GENERAL COUNSEL FOR THE DEFENSE TRANSPORT ADMINISTRATION Item 1 (a) (28) title 49, U. S. C. Section 1 (par. (15)). Powers of Commission in caes of emergency. Whenever the Commission is of opinion that shortage of equipment, congestion of traffic, or other emergency requiring immediate action exists in any section of the country, the Commission shall have, and it is given, authority, either upon complaint or upon its own initiative without complaint, at once, if it so orders, without answer or other formal pleading by the interested carrier or carriers, and with or without notice, hearing, or the making or filing of a report, according as the Commission may determine: (a) To suspend the operation of any or all rules, regulations, or practices then established with respect to car service for such time as may be determined by the Commission; (b) to make such just and reasonable directions with respect to car service without regard to the ownership as between carriers of locomotives, cars, and other vehicles, during such emergency as in its opinion will best promote the service in the interest of the public and the commerce of the people, upon such terms of compensation as between the carriers as they may agree upon, or, in the event of their disagreement, as the commission may after subsequent hearing find to be just and reasonable; (c) to require such joint or common use of terminals, including main-line track or tracks for a reasonable distance outside of such terminals, as in its opinion will best meet the emergency and serve the public interest, and upon such terms as between the carriers as they may agree upon, or, in the event of their disagreement, as the Commission may after subsequent hearing find to be just and reasonable; and (d) to give directions for preference or priority in transportation, embargoes, or movement of traffic under permits, at such time and for such periods as it may determine, and to modify, change, suspend, or annul them. In time of war or threatened war the President may certify to the Commission that it is essential to the national defense and security that certain traffic shall have preference or priority in transportation, and the Commission shall, under the power herein conferred, direct that such preference or priority be afforded. Title 49 Section 420. Special powers during time of war or other emergency. The provisions of section 1 (15), (16), and (17) of this title shall be applicable, in the case of service subject to this chapter, with respect to freight forwarders and other persons, and the service, equipment, and facilities of freight forwarders, with like force and effect as in the case of the carriers and other persons, and the service, equipment, and facilities, to which such provisions are specifically applicable. February 4, 1887, c. 104, part IV, section 420, as added May 16, 1942, c. 318, section 1, 56 Stat. 298. Mr. SILVER. My name is Francis A. Silver. I am general counsel for the Defense Transport Administration. That Administration is one of the emergency agencies created under the Defense Production Act of 1950 and exercises Presidential authority with respect to domestic transportation, storage, and port facilities. Section 1 (a) (28) of House Joint Resolution 386 (82d Cong., 2d sess.) relates to section 1 (15) of the Interstate Commerce Act, as amended, and is referred to in the last item on page 21 of House Document No. 368 (82d Cong., 2d sess.). Section 1 (15) of the Interstate Commerce Act empowers the Interstate Commerce Commission, whenever it is of the opinion that shortage of equipment, congestion of traffic, or other emergency requiring immediate action exists in any section of the country, either upon complaint or upon its own initiative, and at once, without notice or hearing (a) to suspend the operation of all rules, regulations, or practices with respect to car service; (b) to make reasonable directions with respect to car service; (c) to require common use of terminals, and so forth; and (d) to give directions for preference or priority in transportation. The last sentence of the section provides: In time of war or threatened war the President may certify to the commission that it is essential to the national defense and security that certain traffic shall have preference or priority in transportation, and the Commission shall, under the power herein conferred, direct that such preference or priority be afforded. Defense Transportation Administration has recommended that the authority of the President and Commission contained in the last sentence be kept in force and available for exercise, as needs be, to promote or facilitate present preparations for defense notwithstanding that a state of war or threatened war may not exist after the peace with Japan. Without the continuation of the present authority as proposed, the authority to certify to the Commission could not be exercised after the end of the war with Japan without a determination by the President that war is threatened, and such a determination might be seriously prejudicial to the national interest. If the powers are extended as recommended, there would be no need for him to determine whether a state of threatened war exists nor would he be called on to commit himself on that question. Upon certification from the President, the Commission's authority to direct that preference and priority be given by rail carriers to certain traffic, deemed by him essential to the national defense and security, is mandatorily evoked. There is thus made available the machinery, resources, experience, and ability of the Commission to effect preference and priority under directions issued and enforced by the Commission without needless disruption or disturbance to the movement of other traffic. Such directions would be of such nature as to bring about orderly movement of traffic. Moreover, by section 1 (17), the Commission, through an agent or agency appointed for the purpose, may give onthe-spot directions to carriers to effectuate the preference. The Commission's authority under section 1 (15) of the Interstate Commerce Act to proceed upon complaint, or upon its own initiative, requires the existence of facts, known to the Commission, upon which an expression of opinion or finding of emergency can be based. The certification procedure permits of the effective handling of situations where public disclosure of facts would be inimical to national defense or security. It is true that under section 6 (8) of the Interstate Commerce Actwhich is referred to in section 1 (a) (26) of the present bill-the President may, in time of war or threatened war, demand preference over all other traffic for the transportation of troops and "material of war." But as to freight traffic, it is not as broad as the power given in section 1 (15) which refers to "certain traffic," the movement of which he deems essential to the national defense and security. Moreover, under 6 (8), the demand for preference is made directly on the carriers and without the benefit of the interposition of the Commission. Indeed, it is doubtful whether under that section he could evoke the Commission's emergency powers provided in section 1 (15) and the Commission's potential for securing compliance with the demand. If the President desired benefit of Commission assistance in the execution |