Mr. FORRESTER. Thank you. Mr. FEIGHAN. Thank you very kindly, Mr. Johnson. Mr. JOHNSON. Thank you, Mr. Chairman. Mr. FEIGHAN. The committee will now adjourn, subject to the call of the Chair. (Whereupon, at 6 p. m., the subcommittee adjourned subject to the call of the Chair.) 98207-52— -34 EMERGENCY POWERS CONTINUATION ACT FRIDAY, APRIL 25, 1952 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE No. 4, The subcommittee met, pursuant to call, at 10: 20 a. m., in room 346, Old House Office Building, Hon. E. L. Forrester presiding. Subcommittee members present: Representatives Forrester (presiding), Pickett, Boggs, and Hillings. Also present: Miss Velma Smedley, assistant chief clerk; Cyril Brickfield, committee counsel. Mr. FORRESTER. The committee will come to order. I believe that on our last hearing we disposed of the question pertaining to the taking over of the transportation system. Is that correct? Mr. BURRUS. Your last witnesses were on that subject. I think that meeting was on April 7, when the brotherhoods testified. We had had other items intervening between the transportation items and that meeting, I think. Mr. FORRESTER. Mr. Burrus, you know what particular items you are prepared to take up at this time, so we will ask you to take up the one now that you are ready for. Mr. BURRUS. Actually we have six items left, and these items are 1 (a) (7) and 1 (a) (8) of the bill; and 1 (a) (30), 1 (a) (3), and 1 (a) (31) and 1 (a) (17). They are all that we have not covered. We are prepared to take up as our first items, 1 (a) (7) and 1 (a) (8). Colonel Bishop will be our witness on those two items. Mr. FORRESTER. What page will that be found on in the report? Mr. BURRUS. They are related items. 1 (a) (7) is to be found at the bottom of page 13 of our document 368 that we have been working with. You will recall that the Navy testified on item 1 (a) (1), which authorizes the Secretary of the Navy to acquire and operate buildings and facilities in connection with procurement or construction of items; and this is a similar item which is somewhat broader that relates to the Army. This item 1 (a) (7) authorizes the Secretary of War to provide for installations for the manufacture of military equipment at military posts and plants. It also includes privately owned plants, and for storage and shelter, and to exchange surplus equipment. The act also is the only authorization for the appropriation contained in the fiscal year 1952 Department of Defense appropriations to enable the Secretary of the Army to expedite production. It also provides for relaxation of the requirement that title be passed upon by the Attorney General. Mr. FORRESTER. Is that still on page 13 now that you are talking about? Mr. BURRUS. Yes, sir; at the bottom of page 13 and over on the top of page 14. I would like to call your attention to the fact that in the fourth line of item 1 (a) (7) the words "the authority to make advance payments to contractors, without certain restrictions" is incorrect, and that should be stricken. Mr. FORRESTER. Without restrictions? Mr. BURRUS. Yes; that whole clause "make advance payments to contractors, without certain restrictions" is an authority not contained in this provision. That is an error. And on page 14, in the third line, the next to the last word in that third line, the word "construction" should be "production." I stated it that way when I described this item, but I wanted to be sure that that is corrected. Item 1 (a) (8), the first part of it involving entertainment and instruction of the Armed Forces personnel, has already been testified on, and I think Mr. Knott will discuss only the second part of that item. But that provides that any funds available for the construction of buildings, utilities, and appurtenances at military posts shall be available for the purposes specified by existing law. It also has a similar requirement for relaxing the requirement as to approval of title by the Attorney General. Mr. PICKETT. Before the Colonel proceeds, Mr. Chairman, I would like to ask Mr. Burrus a question or two. I have not had the understanding at any time during the course of these hearings that any of the powers were sought to be extended for the Military Establishment or any branch of it to acquire realty without specific authorization from the Congress in advance of the acquisition. Am I correct in my understanding on that? Mr. BURRUS. I think that is correct; except I think there was one item that items could be acquired under a general authorization, I believe, without approval of the specific project. I think that was one authority that was sought, and I believe that was involved in item 1 (a) (1). Mr. PICKETT. As I look back over it, I think that is correct; but I have not had the understanding up until my attention was called to it that such was the case. I will just make this observation, and it does not apply to the Military Establishment alone, but it applies to practically every agency and department of this Government that has anything to do with the acquisition, control, and management of real estate, that too often they have been guilty of committing themselves to such acquisition of additional real estate without authorization by Congress, specific or general. I do not want in this legislation to extend a general power to do that without committing themselves in advance to the proper legislative committee. Do I make myself clear? Mr. BURRUS. I would like to call your attention to the amendment that was added to the bill that is now Public Law 313, the interim emergency powers extension bill. That does contain the provision. that "nothing in this bill shall conflict with Public Law 155," which does require the agreement of the Armed Services Committee with respect to acquirements of real estate and property. Mr. PICKETT. I had in mind that we probably ought to write such language at least of that import, if not stronger, into any bill that we report out dealing with this subject generally. Mr. BURRUS. Yes; I would agree. Mr. PICKETT. While I have no objection so far as this proceeding is concerned to what may be done under any other general or specific statute, I do not want to write into this proposed bill any language that permits the acquisition, retention and disposition of real estate except that they must come to Congress for the power to do it. Do I make myself clear on it? Mr. BURRUS. Yes. Mr. FORRESTER. Let the Colonel proceed. STATEMENT OF COL. H. S. BISHOP, JR., OF THE PRODUCTION BRANCH OF THE PROCUREMENT DIVISION, OFFICE OF THE ASSISTANT CHIEF OF STAFF, G-4, ACCOMPANIED BY LAWSON B. KNOTT, DEPARTMENT OF THE ARMY; DR. HANS KUDLICH, CHIEF, INDUSTRIAL FACILITIES SECTION, PRODUCTION BRANCH, PROCUREMENT DIVISION, DEPARTMENT OF THE ARMY; AND RYLAND C. BRYANT, CONTRACT AWARD SECTION, PURCHASE BRANCH, PROCUREMENT DIVISION, DEPARTMENT OF THE ARMY Item 1 (a) (7), Title 50 Section 773. Extension of other laws. The provisions of section 1 (a) and 1 (b) of the Act entitled "An Act to expedite the strengthening of the national defense," approved July 2, 1940 (Public, Numbered 703, Seventy-sixth Congress) [section 1171 of this Appendix], are continued in effect and made applicable to moneys appropriated for the Department of the Army for national defense purposes during the period prescribed in section 16 of this Act [section 776 of this Appendix]. June 5, 1942, c. 340, section 13, 56 Stat. 317; July 26, 1947, c. 343, Title II, section 205 (a), 61 Stat. 501. Title 50 Section 1171. Contracts for Army defense facilities. (a) Construction of facilities at military posts; acquisition of military equip ment, munitions, and supplies; suspension of limitations on costs; compliance with certain contract conditions; cost methods of contracting. In order to expedite the building up of the national defense, the Secretary of the Army is authorized, out of the moneys appropriated for the Department of the Army for national-defense purposes during the continuance of the present war and for six months after the termination of the war, or until such earlier time as the Congress by concurrent resolution or the President by proclamation may designate, with or without advertising, (1) to provide for the necessary construction, rehabilitation, conversion, and installation at military posts, depots, stations, or other localities, of plants, buildings, facilities, utilities, and appurtenances thereto (including Government-owned facilities at privately owned plants and the expansion of such plants, and the acquisition of such land, and the purchase or lease of such structures, as may be necessary), for the development, manufacture, maintenance, and storage of military equipment, munitions, and supplies, and for shelter, at such places and under such conditions as he may deem necessary; and (3) to enter into such contracts (including contracts for educational orders, and for the exchange of deteriorated, unserviceable, obsolescent, or surplus military equipment, munitions, and supplies for other military equipment, munitions, and supplies of which there is a shortage), and to amend or supplement such existing contracts, as he may deem necessary to carry out the purposes specified in this section: Provided, That the limitations contained in sections 1136 [section 1339 of Title 10] and 3734 [sections 259 and 267 of Title |