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from meetings") their travel subsistence and other necessary expenses incurred by them in the performance of duties vested in the Board in accordance with the Travel Expense Act of 1949, as amended.

The Secretary of Commerce governs and and directs the Inland Waterways Corporation. An Advisory Board of six is appointed by the Secretary (with no mention of Senate confirmation) for five year staggered terms, from individuals prominently identified with commercial or business interests in territory adjacent to the operations of the corporation; but no member shall be an officer, director, or employee of, or substantially interested in any railroad corporation. There is, instead of salary, "a reasonable per diem compensation", and their traveling expenses. In addition, a chairman will be appointed by the Secretary from civil life at a salary not to exceed $10,000 or by detail of a military officer to serve as a major general.

As to TVA, "The board shall direct the exercise of all the powers of the Corporation." The board is composed of three members, appointed by the President by and with the advice and consent of the Senate, with staggered 9-year terms. Salary: $15,000, a house and "actual expenses (including traveling and subsistence expenses) incurred by them in the performance of the duties vested in the board by this chapter." "No member *** shall, during his continuance in office, be engaged in any other business, but each member shall devote himself to the work of the Corporation." "All members *** shall be persons who profess a belief in the feasibility and wisdom of this chapter" (16 U. S. C. A. 831a). Section 831g (b) and (c) specifically provides that each member shall swear to support the Constitution and faithfully and impartially perform his duties. Any member may be removed by a concurrent resolution.

The commissioners of the port authority sit as a board for the purpose of doing business and adopting bylaws for its management.

Section 7. (a) A fund is established in the Treasury of the United States the capital of which "shall consist of

"such amounts as may be advanced to it from appropriations made for that purpose"

"together with the unexpended balance of the appropriation for 'Construction, Washington National Airport' and the

"obligated [sic] balances of the appropriation, Maintenance and operation, Washington National Airport,' provided by the Department of Commerce Appropriation Act, 1954,

"together with the value of the assets of the airport, less liabilities as of
July 1, 1954."

"The value of the assets shall be determined by the Secretary of Com-

"subject to the approval of the Director of the Bureau of the Budget,
"taking into consideration": (1) "original cost, less depreciation";
(2) "the usable value to the airport if clearly less than cost"; (3)
obsolete and unusable facilities and equipment"; and (4) "other reason-
ably determinable factors which would reduce the value of the assets
of the airport."

(b) Interest shall be paid into miscellaneous receipts of the Treasury, at a rate determined by the Secretary of the Treasury (taking certain factors into consideration), “on that portion of the capital which the Secretary [presumably of Commerce] determines to be equivalent to the local share that would have been supplied by the project sponsor had the airport been built and developed in its entirety subsequent to the enactment of the Federal Airport Act and under its provisions by a local public agency with maximum Federal grants-in-aid." (c) Any capital determined by the Secretary [presumably of Commerce] to be in excess of the current needs of the airport shall be credited to the appropriation from which it was advanced to be held for future advances.

(d) "Receipts from operations under this act shall be credited to the fund.” "The fund shall be available for payment of all expenditures of the Secretary under this act."

(e) "Such sums as may be required to carry out the purposes of this act are authorized to be appropriated without fiscal year limitations."

"Advances shall be made to the fund from the appropriations made therefor when requested by the Secretary [presumably of Commerce]. (See Model Charter, p. 56.)

Compare St. Lawrence where the Corporation is authorized to issue to, and the Secretary of the Treasury is directed to buy, revenue bonds bearing interest at a rate determined by the Secretary of the Treasury. For such purposes, the

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Secretary of the Treasury is authorized "to use as a public-debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended." (Public Law 358, sec. 5.)

Compare Inland Waterways where "The capital stock of the Corporation shall be $15 million, all of which is subscribed for by the United States ***” "The Secretary of Commerce shall adjust and appraise the value, at the time of transfer, of all assets transferred to the corporation *** and such value shall be entered upon the books of the corporation." (49 U. S. C. A. 152, 156


Proceeds which the TVA Board deems not needed for operations are to be paid into the Treasury. Excess land is sold as agent for the United States.

The port authority may be financed by appropriations of New York and New Jersey Legislatures, bonds, and revenues.

Section 8: "The corporation is hereby authorized to use its funds, from whatever sources derived, in the exercise of its corporate powers and functions." Section 9: (a) The corporation is to contribute

to the civil-service retirement and disability fund; and to the employees' compensation fund

(b) The corporation shall not be liable retroactively under this section. Compare section 9 (a) supra to St. Lawrence, Public Law 358, section 8 (b), which is similar. Apparently a provision such as section 9 (b) was not inserted in Public Law 358 for the reason that the St. Lawrence Corporation would not take over a going concern and so had no problem of retroactivity.

Section 10: Provides that certain facilities of the airport will be available for use by military and naval aircraft in common with other aircraft at all times without charge, unless the use shall be substantial.

Section 11: Directs the corporation to furnish to any civil agency of the Government, without charge (except for utilities at reasonable cost), reasonably adequate space in airport buildings for air traffic control activities, or weather reporting activities and communications activities related to air traffic control, which such agency may deem it necessary to establish and maintain at the airport. Section 12: Directs the corporation to utilize, to the extent practicable, the available services and facilities of other agencies of the Federal Government on a reimbursable basis.

Compare St. Lawrence, Public Law 358, section 8 (a) which is similar but permissive.

Section 13: Forbids any person to use the words "Washington National Airport," without the consent of the corporation.

Section 14: Expressly reserves the right to alter, amend, or repeal this charter. (See Model Charter, p. 60.)

Section 15: Section 101 of the Government Corporation Control Act (31 U. S. C. 846) is hereby amended by inserting therein the words "Washington National Airport Corp." (See Model Charter, p. 61.) (Cf. St. Lawrence, Public Law 358, sec. 6, to similar effect.

Inland Waterways Corporation is named in the Government Control Act. TVA is exempt from the Government Corporations Control Act, but subject to the specific provisions of title 16, United States Code Annotated, 831h requiring it to file an annual report with the President and the Congress, and subjecting it to an annual audit and report of the General Accounting Office to which TVA is given an opportunity to reply concurrently: Provided that GAO shall not disallow credit for, nor withhold funds because of, any expenditure which the Board determines to have been necessary.

Section 16: Transfers to the Corporation all property and assets connected with the Washington National Airport, together with the tract of land described in the act of June 29, 1940 (54 Stat. 686), as the Washington National Airport (except that portion of such tract of land added to the Mount Vernon Memorial Highway by Executive Order 9851), together with all the structures, improvements, and other facilities located thereon (except the building designated as T-7, located on Abingdon Drive on the airport, now used and operated by the Administrator of General Services). The Corporation is to assume the performance on behalf of the United States of all existing contracts heretofore executed on behalf of the Administrator of Civil Aeronautics in connection with the care, operation, maintenance, and protection of the Washington National Airport. Compare St. Lawrence, to which no specific property appears to be transferred by the statute.

Compare Inland Waterways to which the Secretary of Commerce was directed to transfer all assets and liabilities subject to title 49, United States Code An

notated 141 or 143. It was also provided that the transfer would not effect the running of the statute of limitations or of any prescriptive right.

The TVA Act transferred "use, possession, and control" of certain real and personal property to TVA.

Section 17: Authorizes the Secretary or his designee to make regulations governing the protection of property and conduct of persons on the airport. Designated employees may make arrests and carry firearms, under section 18. The Park Police may, upon request, patrol the airport and make arrests there. Section 19 makes it a misdemeanor to violate any such regulation. Section 20 authorizes acceptance of deposit of collateral for appearance in court. Section 21 provides that the act shall take effect July 1, 1954. Section 22 repeals inconsistent laws.


The St. Lawrence Seaway Development Corporation has, under Public Law 358, certain additional legislative provisions applicable to it. Section 7 provides for payments in lieu of taxes. Section 9 specifically applies certain penal punishment for misappropriation of funds of the Corporation and other wrongdoing related to the Corporation. Section 10 requires an annual report to Congress. Section 11 adds a separability provision in case any aspects of the act are held invalid. Section 12 directs the Corporation to fix charges or tolls, subject to the approval of the President.

The laws regarding TVA provide for TVA financial assistance in lieu of taxes to States in which the power operations of TVA are carried on and in which it has acquired properties previously subject to State and local taxation. TVA may have access to patents. The Government reserves the right, in case of war or national emergency declared by the Congress, to take possession of any of the property for manufacturing explosives or other war purposes. Certain penal punishment for misappropriation of funds of the Corporation and other wrongdoing related to the Corporation is specified. TVA may conduct surveys in cooperation with States. There is a separability clause and a provision for liberal construction of the statute.

American Law Division.

MAY 25, 1954.


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