STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (S. 4270) to promote and strengthen the national defense by suspending enforcement of certain civil liabilities of certain persons serving in the Military and Naval Establishments, including the Coast Guard, submit the following statement in explanation of the effect of the action agreed upon by the conferees and recommended in the accompanying conference report: Most of the provisions of the Senate bill and the House amendment were identical. While there were a number of minor differences of a clerical nature between the Senate bill and the House amendment, there were few substantive differences. The substantive differences between the Senate bill, the House amendment, and the conference agreement are discussed below. Section 301 of the Senate bill and section 301 of the House amendment both provided that no person who has received under a contract for the purchase of property or for the lease or bailment of property with a view to its purchase, a deposit or installment of the purchase price from a person who enters military service should terminate or rescind the contract or repossess the property for nonpayment of any installment falling due during the period of such military service, except by action of a court of competent jurisdiction. The Senate bill also contained a proviso to the effect that nothing in the section should prevent the modification, termination, or cancellation of any such contract, or prevent the repossession or retention of property purchased or received under such contract, pursuant to a mutual agreement of the parties, if such agreement is executed in writing subsequent of the making of the contract and during or after the period of military service. The comparable provision in the House amendment provided that the contract might be terminated or cancelled by mutual consent of the parties thereto, executed in writing, and possession of the property resumed. The conference agreement follows the provision of the Senate bill. The conference agreement also restricts the application of this section to those cases in which an installment or deposit has been received prior to the date of approval of the Act. The Senate bill also provided in this section that the court in which the action is brought should stay the proceedings upon application by or on behalf of the person in military service. Under the House bill the granting of a stay would be discretionary with the court. The conference agreement follows the Senate bill with a modification making it clear that the court is not to be required to grant a stay in conflict with the provisions of section 303. The conference agreement also makes a clarifying change in section 302 in order to make it clear that a stay is not to be granted under that section in conflict with section 303. Section 303 of the House amendment contained provisions not in the Senate bill. This section provided that no court should stay a proceeding to resume possession of a motor vehicle, tractor, or the accessories of either, or for an order of sale thereof, unless the court found that 50 per centum or more of the purchase price had been paid. The conference agreement retains this section. The conference agreement modifies the provisions in section 500 (2) relating to the manner of stays of proceedings or sales for the collection of taxes, so as to provide that no such stay shall extend for a period of more than six months after the termination of the period of military service of the person concerned. The House amendment contained a provision (sec. 500 (6)) providing for the deferment of income taxes on the income of any person in military service if such person's ability to pay such taxes is impaired by reason of such service. This provision is retained in the conference agreement (sec. 513) with certain modifications and clarifying changes. Under the provision as it is contained in the conference agreement the collection of income taxes is to be deferred for a period extending not more than six months after the termination of the period of military service, and is to be deferred only if the taxpayer's ability to pay the tax is materially impaired by reason of such service. No interest or penalty is to accrue on account of nonpayment of the tax during the period of deferment. The running of any statute of limitations against the collection of tax is to be suspended during the period of military service and for nine months thereafter. The deferment provisions are not to be applicable with respect to the Social Security taxes payable under section 1400 of the Federal Insurance Contributions Act. Sections 502 and 503 extend certain relief in the case of homestead entrymen who entered the military service. Under the House amendment this relief was extended to persons having a valid settlement claim. The conference agreement follows the House amendment in this respect. The Senate bill contained a separability provision, which was not in the House amendment. This provision is retained in the conference agreement. The termination date provided for was May 15, 1945, in the Senate bill, and June 30, 1945, in the House amendment. The conference agreement provides for termination on May 15, 1945, which is also the termination date for the Selective Training and Service Act of 1940. Both the Senate bill and the House amendment contained savings clauses for the purpose of providing that the termination of the Act should not prevent the exercise or enjoyment of a proceeding, remedy, privilege, stay, limitation, accounting, or other transaction authorized or provided on account of events occurring prior to the date fixed for such termination. While these clauses have the same purpose there was some difference in language. The conference agreement follows substantially the House amendment with a modification which makes it clear that the savings clause is to be effective only for the purpose of preserving proceedings, remedies, privileges, stays, limitations, accountings, and other transactions arising out of or connected with military service performed prior to the date fixed for termination of the Act. The Senate bill provided that the provisions of section 4 of Public Resolution Numbered 96, Seventy-sixth Congress, and of section 13 of the Selective Training and Service Act of 1940 (extending certain of the benefits of the Soldiers' and Sailors' Civil Relief Act of 1918 to members of the Reserve components of the military and naval forces on active duty and to persons inducted under the Selective Training and Service Act) should not be applicable with respect to any military service performed after the date of enactment of this Act. The House amendment repealed these two sections. The conference agreement follows the provisions of the Senate bill. A. J. MAY, R. E. THOMASON, L. C. ARENDS, FOREST A. HARNESS, Managers on the part of the House. O ADDITIONAL APPROPRIATION FOR NATIONAL DEFENSE HOUSING FOR THE FISCAL YEAR ENDING JUNE 30, 1941 OCTOBER 8, 1940.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. TAYLOR, from the Committee on Appropriations, submitted the following REPORT [To accompany H. J. Res. 614) The Committee on Appropriations, to which was referred the joint resolution (H. J. Res. 614) entitled "Joint resolution making an additional appropriation for national-defense housing for the fiscal year ending June 30, 1941, and for other purposes," reports the same without amendment and with a favorable recommendation for its immediate passage. The purpose of the joint resolution is to provide funds for carrying into effect the provisions of H. R. 10412, passed by both Houses, to provide housing for national defense, and H. R. 4088, amending the Commodity Exchange Act, presented to the President for approval. H. R. 10412 authorizes an appropriation of $150,000,000 for housing for national defense. Pursuant to a Budget estimate in Senate Document No. 291, the joint resolution provides a direct appropriation of $75,000,000 and authorizes contracts to be entered into for an additional amount of $75,000,000 on account of this authorization. Sums heretofore provided for national-defense housing total $150,000,000, consisting of $100,000,000 in the Second Supplemental National Defense Appropriation Act, 1941, $40,000,000 through the Federal Housing Authority, and $10,000,000 allocated by the Presi dent from emergency defense funds. The housing needs in connection with national defense as surveyed by the Advisory Commission of the Council on National Defense as of October 2 indicate requirements for 132,316 units. The minimum needs in connection with the entire defense program are estimated at 160,000 units, the cost of which is estimated at $560,000,000. It is the expectation that one-half of this will be met from private sources. Considering the need as of October 2 of 132,316 units, there has been or will be provided with the $100,000,000, heretofore directly appropriated, a total of 27,240 units, leaving the needs as of October |