adopted promptly providing this type of insurance, and that the existence of these insurance provisions be widely publicized as soon as they become law. These steps are essential to the degree of cooperation which civil defense evacuation plans demand of the personnel and equipment owners.

In this letter reference has been made to just a few of the practical eventualities which must be insured against under the civil defense plans. Another facet is insurance cove.ing injuries and damage to other persons and property caused by the personnel and property being operated under civil defense, including injuries and damage to persons and property also being utilized by civil defense in the operation.

We would like to make it clear that we don't know at this time to what extent, if any, the private insurance business of the country approves or disapproves of the proposed legislation. Representatives of several segments of private insurance are serving on the Insurance Committee of the ACT Committee and have participated to some extent in discussions which led to this draft. believe that this problem properly belongs in the study your recently created subcommittee is going to make and there isn't time between now and your subcommittee's deadline for obtaining the views of the private insurance groups on the proposed bill.

However, we

It is requested that the Independent Advisory Committee to the trucking industry be afforded an opportunity to testify before your subcommittee on the subject covered in this letter.

Sincerely,

ARTHUR D. CONDON.

DRAFT

A BILL To establish the War Damage Corporation to insure against loss of or damage to property, real and personal, which may result from enemy attack, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That

(a) There is hereby created a War Damage Corporation (hereinafter referred to as the "Corporation") which shall insure, as hereinafter provided, against loss of or damage to property, real and personal, and loss of life or injury to persons engaged in Civil Defense activities while under the direction of the Administrator of Civil Defense which may result from enemy attack, or threat thereof.

(b) The management of the Corporation shall be vested in a board of directors consisting of three members, one of whom shall be the Comptroller of the Currency, and two of whom shall be citizens of the United States to be appointed by the President, by and with the advice and consent of the Senate. One of the appointive members shall be the chairman of the board of directors of the Corporation and not more than 2 members of such board of directors shall be members of the same political party. Each such appointive member shall hold office for a term of seven years and shall receive compensation at the rate of $17,500 per annum, payable monthly out of the funds of the Corporation, but the Comptroller of the Currency shall not receive additional compensation for his services as such member. In the event of a vacancy in the office of the Comptroller of the Currency, and pending the appointment of his successor, or during the absence of the Comptroller from Washington, D. C., the acting Comptroller of the Currency shall be a member of the board of directors in the place and stead of the Comptroller. In the event of a vacancy in the office of the chairman of the board of directors, and pending the appointment of his successor, the Comptroller of the Currency shall act as Chairman.

(c) There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $150,000,000, which shall be available for payment by the Secretary of the Treasury for capital stock of the Corporation, which shall be subscribed for by him on behalf of the United States. Payments upon such subscription shall be subject to call in whole or in part by the board of directors of the Corporation. Receipts for payments by the United States for or on account of such stock shall be issued by the Corporation to the Secretary of the Treasury and shall be evidence of the stock ownership of the United States. Such stock shall have no vote and shall not be entitled to the payment of dividends.

(d) The Corporation shall have power

First: To adopt, alter, and use a Corporate seal.

Second: To have succession until dissolved by an Act of Congress.

Third: To make contracts.

Fourth To use its funds to provide through insurance, reinsurance, or otherwise,

(i) Reasonable protection against loss of or damage to property, real or personal;

(ii) Reasonable protection against such liability as may exist under any workmen's compensation or occupational disease act, or by way of employer's liability for injury, disease or death suffered by employees and arising out of or in the course of employment;

(iii) Reasonable compensation for personal injury or death suffered by any civil defense worker in the performance of civil defense activities under state civil defense programs;

(iv) Reasonable protection against such liability for loss of life or injury to persons and loss of or damage to property, real or personal, as may result and exist from actions taken by the Administrator of Civil Defense, State Civil Defense Authorities, or those operating under his or their direction; and

(v) Subject to the authorizations and limitations prescribed in Section (d) (iv) any loss of life or injury to persons and loss of or damage to property, real or personal, as may result and exist from actions taken by the Administrator of Civil Defense, State Civil Defense Authorities, or those operating under his or their direction, shall be compensated by the Corporation without requiring a contract of insurance or the payment of premium or other charge, and such loss, damage or injury may be adjusted as if a policy covering such property or life was in fact in force at the time of such loss or damage; which may result from hostile or warlike action, including action in hindering, combating, or defending against an actual, impending, or expected attack, by any government or sovereign power, or by any authority using military, naval, or air forces; or by military, naval, or air forces; or by an agent of any such government, power, authority, or forces; and any action taken by the military, naval, or air forces of the United States in resisting enemy attack or any action taken by the Civil Defense Administrator or those acting under him, in the event of enemy attack, or threat thereof; with such general exceptions as the Corporation, with the approval of the President, may deem advisable. Such protection shall be made available upon the payment of such premium or other charge, and subject to such terms and conditions, as the Corporation, with the approval of the President, may establish, but, in view of the national interest involved, the Corporation shall from time to time establish uniform rates (A) for each type of property with respect to which such protection is made available, (B) for such workmen's compensation reinsurance, (C) for compensation for personal injury or death suffered by civil defense workers with respect to whom such protection is made available, and, in order to establish a basis for such rates, the Corporation shall estimate, from time to time, the average risk of loss on all such property of such type in the United States, from all such workmen's compensation reinsurance, and on all such compensation. Such protection shall be applicable only (1) to such property situated in, or such liability under the laws of, or such personal injury or death of a civilian defense worker occurring in, the United States, the several States, the District of Columbia, the Canal Zone, the Territories and possessions of the United States; (2) to such property in transit between any points located in any of the foregoing; and (3) to all bridges and tunnels between the United States and Canada and between the United States and Mexico: Provided, That such protection shall not be applicable to property in transit upon which any agency of the Government is authorized to provide marine war-risk insurance. The Corporation, with the approval of the President, may suspend, restrict, or otherwise limit such protection in any area to the extent that it may determine to be necessary or advisable in consideration of the loss of control of such area by the United States making it impossible or impracticable to provide such protection in such area. The Corporation, with the approval of the President, may provide such limitations and general exceptions with respect to classes of property protected, such workmen's compensation reinsurance, such personal injury or death of a civilian defense worker and other matters as the Corporation may deem necessary or desirable.

Fifth To sue and be sued, complain and defend, in any court of law or equity, State or Federal.

Sixth: To appoint by its Board of Directors such officers and employees as are not otherwise provided for in this section, to define their duties, and to delegate such powers as may be appropriate to carry out such duties, and to require bonds of them and fix the penalty thereof: Provided, however That all employees on the payroll of the Corporation shall have been appointed and shall be compensated in accordance with the Civil Service Act and the Classification Act of 1949.

Seventh: To prescribe by its Board of Directors, bylaws not inconsistent with law, regulating the manner in which its general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed, and to amend and repeal bylaws governing the conduct of its business and the performance of the powers and duties granted to or imposed upon it by law.

Eighth: To exercise by its Board of Directors, or duly authorized officers or agents, all powers specifically granted by the provisions of this section and such incidental powers as shall be necessary to carry out the powers so granted. Ninth: To prescribe by its Board of Directors such rules and regulations as it may deem necessary to carry out the provisions of this section.

Tenth: To invest money of the Corporation not otherwise employed in obligations of the United States in or in obligations guaranteed as to principal and interest by the United States.

Eleventh To acquire, in any lawful manner, any property-real, personal, or mixed, tangible or intangible to hold, maintain, use and operate the same; and to sell, lease, or otherwise dispose of the same, whenever any of the foregoing transactions are deemed necessary or appropriate to the conduct of the activities authorized by this act, and on such terms as may be prescribed by the Corporation.

Twelfth to execute all instruments necessary or appropriate in the exercise of any of its functions.

Thirteenth To use the United States mails in the same manner and under the same conditions as the executive departments of the Federal Government. Fourteenth To settle and adjust claims held by it against other persons or parties and by other persons or parties against the Corporation.

Fifteenth To take such actions as may be necessary or appropriate to carry out the powers and duties herein or hereafter specifically granted to or imposed upon it.

Sixteenth: To deposit the funds of the Corporation with the Treasurer of the United States in an account marked with the name of the Corporation. Seventeenth: To issue, whenever in the judgment of the Board of Directors additional funds are required for the purpose of carrying out its functions with respect to insurance and have outstanding its notes, debentures, bonds, or other obligations, in a par amount aggregating not more than three times the amount received by the Corporation in payment of its capital stock. The Secretary of the Treasury is authorized and directed to purchase such obligations and may, at any time, sell any of such obligations of the Corporation. All redemptions, purchases, and sales by the Secretary of the Treasury of the obligations of the Corporation shall be treated as public debt transactions of the United States.

(e) Upon the dissolution or liquidation of this Corporation by Act of Congress, all funds belonging to the Corporation shall revert to the United States, after payment of all necessary expenses of liquidation including refunds to insureds for unearned premiums.

(f) The Corporation shall annually make a report of its operations to the Congress as soon as practicable after the 1st day of January in each year.

(g) The Corporation, including its franchise, its capital, reserves, surplus, and income, shall be exempt from all taxation (which shall, for all purposes, be deemed to include sales, use, storage, and purchase taxes) now or hereafter imposed by the United States, or any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority, except that any real property (or buildings which are considered by the laws of any State to be personal property for taxation purposes) of the Corporation shall be subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.

(h) The Corporation shall contribute to the civil-service retirement and disability fund, on the basis of annual billings as determined by the Civil Service

Commission, for the Government's share of the cost of the civil-service retirement system applicable to the Corporation's employees. The Corporation shall also contribute to the employees' compensation fund, on the basis of annual billings as determined by the Secretary of Labor, for the benefit payments made from such fund on account of the Corporation's employees. The annual billings shall also include a statement of the fair portion of the cost of the administration of the respective funds, which shall be paid by the Corporation into the Treasury as miscellaneous receipts.

Senator LEHMAN. Thank you very much for coming here.

The committee will certainly give careful study to your proposal. Mr. CONDON. Thank you.

Senator LEHMAN. The committee will now stand recessed until Tuesday, February 21, at 10 o'clock.

(Whereupon, at 12:20 p. m., the subcommittee recessed, to reconvene at 10 a. m., Tuesday, February 21, 1956.)