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river or drainage improvement required to perform or satisfy any obligation incurred by the United States through a treaty with a foreign Government heretofore ratified and to restore or develop for the use of any State or its citizens, water taken from or denied to them by performance on the part of the United States of treaty obligations heretofore assumed: Provided, That no river or harbor improvements shall be carried out unless they shall have heretofore or hereafter been adopted by the Congress or are recommended by the Chief of Engineers of the United States Army; (c) any projects of the character heretofore constructed or carried on either directly by public authority or with public aid to serve the interests of the general public; (d) construction, reconstruction, alteration, or repair under public regulation or control of low-cost housing and slumclearance projects; (e) any project (other than those included in the foregoing classes) of any character heretofore eligible for loans under subsection (a) of section 201 of the Emergency Relief and Construction Act of 1932, as amended, and paragraph (3) of such subsection (a) shall for such purposes be held to include loans for the construction or completion of hospitals the operation of which is partly financed from public funds, and of reservoirs and pumping plants and for the construction of dry docks; and if in the opinion of the President it seems desirable, the construction of naval vessels within the terms and/or limits established by the London Naval Treaty of 1930 and of aircraft required therefor and construction of heavier-than-air aircraft and technical construction for the Army Air Corps and such Army housing projects as the President may approve, and provision of original equipment for the mechanization or motorization of such Army tactical units as he may designate: Provided, however, That in the event of an international agreement for the further limitation of armament, to which the United States is signatory, the President is hereby authorized and empowered to suspend, in whole or in part, any such naval or military construction or mechanization and motorization of Army units: Provided further, That this title shall not be applicable to public works under the jurisdiction or control of the Architect of the Capitol or of any commission or committee for which such Architect is the contracting and/or executive officer.

NOTE

The estimated cost of the Grand Coulee Dam, Columbia Basin projec., is $28,325,000. The Public Works allotted $63,000,000 for its construction but later reduced this amount to $15,000,000. The Department held that the full cost of the dam might be contracted for if a proper saving clause were included in the contract binding the Government to the extent of money appropriated and allotted but binding beyond the original allotment only as further allotments were made from appropriated funds, or as Congress made additional appropriations. Opinion M-27666, of Assistant Solicitor, approved by the First Assistant Secretary, May 2, 1934.

The

The contract for the construction of the Grand Coulee Dam, Columbia Basin, was estimated to involve an expenditure of approximately $25,000,000. specifications issued in connection with advertisement for bids for the construction of the dam call for a $5,000,000 bond but the surety companies stated they could not furnish a bond in excess of $3,000,000. The Department ruled that bonds executed by two or more individuals as sureties are acceptable but the individual bondsman must have assets other than his holdings in the

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contracting company double the amount of his liability on the bond. Decision M-27715, of Acting Solicitor, approved by the First Assistant Secretary, May 19, 1934.

The Ornamental Iron Works, Akron, Ohio, requested the Secretary to release them from their low bid on stairways, platforms, etc., for Boulder Dam and appurtenant works. The Comptroller General ruled that it is no concern of the contracting officer whether a bid violates the code for the industry concerned; that it is the duty of the contracting officer to accept the lowest responsible bid and to see that the contract contains the applicable provisions relative to code compliance, and that there is no authority for permitting withdrawal of the bid or extension of time for completion of work under the bid. Decision of Comptroller General, A-55886, dated June 7, 1934.

The United States contracted with the Uncompahgre Valley Water Users Association to expend not to exceed $325,000 of Public Works funds in the rehabilitation of the south canal and general repairs and replacements to other portions of the irrigation system. The work or part of the work was to be done by the association and the cost thereof was to be paid by the United States. The Comptroller General ruled (1) that orders to the association to proceed with the work should contain the instructions in Bulletin 51, Federal Emergency Administration of Public Works, relative to National Recovery Act requirements, minimum wage rates, articles of domestic production, etc., advertising to be required on all purchases in excess of $100, (b) that it is not permissible to advance a lump sum to the association as payment to the association may only be made on an actual cost basis on submission of properly supported vouchers, and (c) that vouchers for direct settlement should receive the usual administrative examination with due regard to the foregoing restrictions. Comptroller General's decision of May 31, 1934, A-55131.

Decision of First Assistant Secretary, dated December 12, 1933, authorizes acceptance of low bids for Ford cars needed in connection with the CasperAlcova reclamation project (a Federal project adopted under sec. 202 of the N. I. R. A.), although the makers of the Ford cars had not subscribed to the National Recovery Administration code. It was pointed out that the Comptroller General had held, November 29, 1933, A-51737, that while contracts may include National Recovery Administration provisions, and penalty provisions for noncompliance, the appropriation for carrying out the contracts could not be used in making payments on contracts with other than the low bidder, where the low bid was rejected on the assumption that the low bidder violated a code in the submission of his bid; and that such question of code violation is for judicial determination.

The Nevada legislature passed an act, approved Feb. 28, 1935, authorizing Washoe County to issue noninterest-bearing bonds for $500,000, to deliver the bonds to the Washoe County Water Conservation District, and to levy and collect taxes for payment thereof, on condition that the Washoe County Conservation District enter into a contract with the United States for repayment of $1,000,000 to be advanced by the United States under its recovery program for construction of upstream storage works on the Truckee River. The county clerk of Washoe County refused to issue said bonds, alleging that he had serious doubts as to the constitutionality of said act. The Washoe County Water Conservation District applied for a writ of mandamus. The Nevada Supreme Court held the act constitutional and granted the writ. Washoe County Water Conservation District v. Beemer, 45 Fed. (2), 779–785.

In United States v. State of Arizona, 295 U. S. 174, the United States through the Secretary of the Interior and Federal Emergency Administrator of Public Works filed a bill of complaint to restrain Arizona from interference with the construction of Parker Dam in the Colorado river. The Supreme Court, on April 29, 1935, ruled that this dam had not been authorized by Congress as required by sec. 9 of the act of Mar. 3, 1899; that Congress had not authorized examinations and surveys; and that the President had not approved the construction of the dam as required by sec. 4 of the act of June 25, 1910.

SEC. 203. [Aid in construction or financing of any public-works project-Grants to States, municipalities, etc.-Acquisition of personal or real property-Travel expenditures-Personal services

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Provisions of Emergency Relief and Construction Act applicable.]— (a) With a view to increasing employment quickly (while reasonably securing any loans made by the United States) the President is authorized and empowered, through the Administrator or through such other agencies as he may designate or create, (1) to construct, finance, or aid in the construction or financing of any public-works project included in the program prepared pursuant to section 202; (2) upon such terms as the President shall prescribe, to make grants to States, municipalities, or other public bodies for the construction, repair, or improvement of any such project, but no such grant shall be in excess of 30 per centum of the cost of the labor and materials employed upon such project; (3) to acquire by purchase, or by exercise of the power of eminent domain, any real or personal property in connection with the construction of any such project, and to sell any security acquired or any property so constructed or acquired or to lease any such property with or without the privilege of purchase: Provided, That all moneys received from any such sale or lease or the repayment of any loan shall be used to retire obligations issued pursuant to section 209 of this act, in addition to any other moneys required to be used for such purpose; (4) to aid in the financing of such railroad maintenance and equipment as may be approved by the Interstate Commerce Commission as desirable for the improvement of transportation facilities; and (5) to advance, upon request of the Commission having jurisdiction of the project, the unappropriated balance of the sum authorized for carrying out the provisions of the act entitled "An act to provide for the construction and equipment of an annex to the Library of Congress", approved June 13, 1930 (46 Stat. 583); such advance to be expended under the direction of such Commission and in accordance with such act: Provided, That in deciding to extend any aid or grant hereunder to any State, county, or municipality the President may consider whether action is in process or in good faith assured therein reasonably designed to bring the ordinary current expenditures thereof within the prudently estimated revenues thereof. The provisions of this section and section 202 shall extend to public works in the several States, Hawaii, Alaska, the District of Columbia, Puerto Rico, the Canal Zone, and the Virgin Islands.

(b) All expenditures for authorized travel by officers and employees, including subsistence, required on account of any Federal public-works projects shall be charged to the amounts allocated to such projects, notwithstanding any other provisions of law; and there are authorized to be employed such personal services in the District of Columbia and elsewhere as may be required to be engaged upon such work and to be in addition to employees otherwise provided for, the compensation of such additional personal services to be a charge against the funds made available for such construction work.

(c) In the acquisition of any land or site for the purposes of Federal public buildings and in the construction of such buildings provided for in this title, the provisions contained in sections 305 and 306 of the Emergency Relief and Construction Act of 1932, as amended, shall apply.

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(d) The President, in his discretion, and under such terms as he may prescribe, may extend any of the benefits of this title to any State, county, or municipality, notwithstanding any constitutional or legal restriction or limitation on the right or power of such State, county, or municipality to borrow money or incur indebtedness.

SEC. 204. [Grants to State highway departments for construction of highways and related projects-Federal Highway Act of 1921Expenditures Contracts must provide minimum wage rates-Rightsof-way over Government-owned property.](a) For the purpose of providing for emergency construction of public highways and related projects, the President is authorized to make grants to the highway departments of the several States in an amount not less than $400,000,000, to be expended by such departments in accordance with the provisions of the Federal Highway Act, approved November 9, 1921, as amended and supplemented, except as provided in this title, as follows:

(1) For expenditure in emergency construction on the Federal-aid highway system and extensions thereof into and through municipalities. The amount apportioned to any State under this paragraph may be used to pay all or any part of the cost of surveys, plans, and of highway and bridge construction including the elimination of hazards to highway traffic, such as the separation of grades at crossing, the reconstruction of existing railroad grade-crossing structures, the relocation of highways to eliminate railroad crossings, the widening of narrow bridges and roadways, the building of footpaths, the replacement of unsafe bridges, the construction of routes to avoid congested areas, the construction of facilities to improve accessibility and the free flow of traffic, and the cost of any other construction that will provide safer traffic facilities or definitely eliminate existing hazards to pedestrian or vehicular traffic. No funds made available by this title shall be used for the acquisition of any land, right of way, or easement in connection with any railroad grade elimination project.

(2) For expenditure in emergency construction on secondary or feeder roads to be agreed upon by the State highway departments and the Secretary of Agriculture: Provided, That the State or responsible political subdivision shall provide for the proper maintenance of said roads. Such grants shall be available for payment of the full costs of surveys, plans, improvement, and construction of secondary or feeder roads, on which projects shall be submitted by the State highway department and approved by the Secretary of Agriculture.

(b) Any amounts allocated by the President for grants under subsection (a) of this section shall be apportioned among the several States seven-eighths in accordance with the provisions of section 21 of the Federal Highway Act, approved November 9, 1921, as amended and supplemented (which Act is hereby further amended for the purposes of this title to include the District of Columbia), and oneeighth in the ratio which the population of each State bears to the total population of the United States, according to the latest decennial census and shall be available on July 1, 1933, and shall remain available until expended; but no part of the funds apportioned to

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any State need be matched by the State, and such funds may also be used in lieu of State funds to match unobligated balances of previous apportionments of regular Federal-aid appropriations.

(c) All contracts involving the expenditure of such grants shall contain provisions establishing minimum rates of wages, to be predetermined by the State highway department, which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals for bids for the work.

(d) In the expenditure of such amounts, the limitations in the Federal Highway Act, approved November 9, 1921, as amended and supplemented, upon highway construction, reconstruction, and bridges within municipalities and upon payments per mile which may be made from Federal funds, shall not apply.

(e) As used in this section the term "State" includes the Territory of Hawaii and the District of Columbia. The term "highway" as defined in the Federal Highway Act approved November 9, 1921, as amended and supplemented, for the purposes of this section, shall be deemed to include such main parkways as may be designated by the State and approved by the Secretary of Agriculture as part of the Federal-aid highway system.

(f) Whenever, in connection with the construction of any highway project under this section or section 202 of this act, it is necessary to acquire rights-of-way over or through any property or tracts of land owned and controlled by the Government of the United States, it shall be the duty of the proper official of the Government of the United States having control of such property or tracts of land with the approval of the President and the Attorney General of the United States, and without any expense whatsoever to the United States, to perform any acts and to execute any agreements necessary to grant the rights-of-way so required, but if at any time the land or the property the subject of the agreement shall cease to be used for the purposes of the highway, the title in and the jurisdiction over the land or property shall automatically revert to the Government of the United States and the agreement shall so provide.

(g) Hereafter in the administration of the Federal Highway Act, and acts amendatory thereof or supplementary thereto, the first paragraph of section 9 of said act shall not apply to publicly owned toll bridges or approaches thereto, operated by the highway department of any State, subject, however, to the condition that all tolls received from the operation of any such bridge, less the actual cost of operation and maintenance, shall be applied to the repayment of the cost of its construction or acquisition, and when the cost of its construction or acquisition shall have been repaid in full, such bridge thereafter shall be maintained and operated as a free bridge.

SEC. 205. [Allotment of funds for various projects.]-(a) Not less than $50,000,000 of the amount made available by this act shall be allotted for (A) national forest highways, (B) national forest roads, trails, bridges, and related projects, (C) national park roads and trails in national parks owned or authorized, (D) roads on Indian reservations, and (E) roads through public lands, to be expended in the same manner as provided in paragraph (2) of section 301 of the