Coordinator stated have been suggested to him since the introduction of the bill. These proposed amendments are approved by the Coordinator and by the Federal Works Agency and the Public Buildings Administration as in accord with the purposes of the bill and helpful in clarifying the intent thereof.

Section I authorizes the Federal Works Administrator, acting through Public Buildings Administration, to acquire land and engage in necessary construction thereon in those areas in which the President finds that an acute shortage of housing exists or impends which would impede national-defense activities. The authority provided by the bill, however, is limited to the provision of housing for "persons engaged in national-defense activities" (which term is defined in section 2). is contemplated that the President's designation of areas in which such shortage exists will be based upon data available to him from time to time through the Advisory Commission to the Council of National Defense.)

(It

Subsection (a) of section 1 would, in the interest of speedy operation, authorize the acquisition of improved or unimproved lands, or any interest in lands, by the various methods of acquisition in ordinary use including proceedings by condemnation and declaration of taking. This subsection waives statutory requirements of a prior opinion of the Attorney General as to the validity of title (sections 355, as amended, and 1136, as amended, of the Revised Statutes), of competitive bidding (sec. 3709 of the Revised Statutes), and authorizes acquisition of land by lease without regard to section 322 of the act of June 30, 1932, 47 Stat. 412, which limits rentals to 15 percent of fair market value, or the act of March 3, 1877, 19 Stat. 370, which prohibits rentals in the District of Columbia in the absence of a specific appropriation therefor. The two last-named exemptions are provided to permit freedom of action although it seems improbable that much, if any, construction on rented property will become

necessary.

Subsection (b) of section 1 authorizes the planning and construction of buildings and facilities on lands acquired pursuant to subsection (a), or transferred from other Federal agencies, and also authorizes the procurement of equipment and materials, and for all those purposes waives the statutory prohibition against expenditure of funds on lands in the absence of an opinion of the Attorney General as to title (sec. 355, as amended, and sec. 1136, as amended, of the Revised Statutes), limits of cost in the construction of barracks (sec. 1136, as amended, of the Revised Statutes), the 25 percent-of-rental limitation on the amount which may be expended on rented property (sec. 322 of the act of June 30, 1932), the requirement of competitive bidding (sec. 3709 of the Revised Statutes), any Federal, State, or municipal laws or ordinances relating to plans and specifications or forms of contract requiring the approval thereof and the submission of estimates therefor (this would include regulations of the Procurement Division relating to standard forms and specifications, secs. 1136, as amended, and 3734, as amended, of the Revised Statutes).

It will be noted that some of the statutes waived in this subsection (b) are likewise waived in subsection (a). This is necessary because the waiver of these statutes with respect to the subject matter of subsection (a) does not waive their application with respect to the subject matter of subsection (b).

A proviso to subsection (b) prohibits the use of cost-plus-a-percentage-of-cost contracts but permits contracts on the basis of cost plus a fixed fee. Thus, depending upon the need for rapid action, work can go forward on projects through negotiated contracts on a cost basis without the necessity for prior final completion of detailed plans and specifications, or where time permits and if found desirable, detailed plans and specifications can be prepared in final form sufficient to permit the letting of contracts pursuant to competitive bids. In order to permit freedom of action under building conditions which cannot now be foreseen, and yet at the same time limit the structures produced to minimum decent housing, a limitation of $3,500 average cost per family dwelling unit is imposed, exclusive of expenses for administration, land acquisition, public utilities, and community facilities. The selection of a figure which will impose the limits desired and yet permit proper action under the varied circumstances contemplated by this bill is a matter of some difficulty. It is confidently anticipated that costs can be kept somewhat under the figure mentioned. However, as was noted in the testimony structures in such situations as Alaska require more expensive construction which (if numerous units are required in areas of this type) may increase the average cost. It should also be noted that the cost of land and of utilities is unpredictable. Estimates of cost made with reference to a few isolated instances cannot safely be used as an estimate for an average over-all cost to be rigidly imposed.

Section 2 defines the term "Federal agency" as used in the proposed bill. This section also defines the term "persons engaged in nationaldefense activities" to include (1) enlisted men in the naval or military services of the United States, (2) employees of the United States in the Navy or War Departments assigned to duty at naval or military reservations, posts, or bases, (3) workers engaged or to be engaged in industries connected with and essential to the national defense.

Section 3 authorizes the appropriation of the sum of $150,000,000 to remain available until expended, to carry out the purposes of the bill and for administrative expenses in connection therewith. It also authorizes the use of funds, appropriated pursuant to this bill, for the reimbursement of certain emergency appropriations provided by the acts of June 11, and June 13, 1940, to the extent that the latter appropriations have been allocated for housing purposes. No limit on administrative expenses is specified because of the difficulty of arriving at a fixed limit in view of the wide variety and scope of contemplated operations.

Section 4 provides for the termination of the authority to acquire lands and build thereon when the President declares that the emergency proclaimed on September 8, 1939, has ceased to exist, except that such authority is continued with respect to contracts on projects previously entered into or court proceedings then pending. The reason for the exception, of course, is to avoid undue loss to the Government which would be involved in the sudden cessation of uncompleted work which might have attained the point where its completion would permit the disposal thereof upon favorable terms.

Section 4 also directs that at such time as the President so declares the emergency has ceased to exist, any property acquired under this bill be disposed of as may be advantageous under the circumstances and in the public interest. Since it is impossible at this time to fore

see all circumstances under which the emergency may terminate or the status at that time of the areas in which projects are undertaken pursuant to this bill, specific directions for the disposal of such property have not been set forth. It is conceivable, for example, that the properties should not be sold immediately upon termination of the emergency in order to avoid aggravating any weaknesses that may exist in the real-estate market. It may so happen that it would be in the interest of the Government, of the occupants of these properties, and of the local municipality, that the properties be conveyed to the local municipality for use by families of low income, or it may be possible that the interest of all concerned would require the properties to be demolished.

Section 5 permits the transfer to the Federal Works Agency of funds of other Federal agencies which may be available for national-defense housing. For example, the War or Navy Departments or other governmental agency which might have funds for housing purposes might find it desirable to have such housing constructed through the Public Buildings Administration acting under the provisions of this bill in the same manner that the facilities of the Public Buildings Administration are now made available to other agencies for the construction of buildings.

Section 6 permits moneys derived from rental or operation of property under this bill to be returned to the appropriation and to be available for expenses of operation and maintenance, including administrative expenses in connection therewith.

Section 7 gives the Federal Works Administrator, acting through Public Buildings Administration, necessary powers to manage and care for any property acquired or constructed under this bill and permits him to do this by means of Government personnel, or by selected qualified private agencies, or by the use of public agencies. Power is included to lease or sell property, to donate portions thereof to municipalities for street or other public use, and to collect claims by way of compromise or otherwise. Specific power to insure these properties is granted, because it is contemplated that many, if not all, of the buildings will be frame construction, thus constituting a special risk differing in its nature from the risk on usual governmental building. The actions of the Administrator under this section are, of course, limited to such transactions as are deemed by him to be in the public interest. Leases authorized under this section are exempt from the provisions of section 321 of the act of June 30, 1932, which is at variance with the operations contemplated by this bill in that it provides that property of the United States shall be leased for a money consideration only, that there shall not be included in the lease any provision for alteration, repair, or improvement as part of the consideration, and that proceeds from any such lease shall be deposited in the Treasury as miscellaneous receipts.

Section 8 permits the utilization for purposes of this bill of any employees or facilities of the Federal Works Agency and of its constituent units, on a reimbursement basis. It is felt that there are undoubtedly in the Federal Works Agency at present numerous employees whose services, either whole or part time, will be valuable in this program.

Section 9 permits agreements with local taxing authorities for the payment of annual sums in lieu of real property taxes, but not to ex

ceed the taxes which would be paid if the property were privately owned. It is thought necessary to include this provision in fairness to local municipalities, since much of the land utilized for these projects may be undeveloped and it would be unreasonable to expect the municipality to provide police and fire protection, schools, and other services which may be necessary, unless some taxes were paid.

Section 10 provides that the civil and criminal jurisdiction of the State or political subdivision, and the rights of inhabitants on the property under local law are not impaired by the acquisition of the property by the United States.

Sections 11, 12, and 13 contain customary clauses providing, respectively, for the promulgation of rules and regulations, for the separability of any portion of the act which may be held invalid, for a report on all transactions at the beginning of each session of Congress.

The purpose of the bill is to expedite the provision of housing in connection with national defense as is indicated in the title of the bill.

О

MEIER LANGERMANN, HIS WIFE, FRIEDERIKE, AND SON, JOSEPH

SEPTEMBER 6, 1940.-Committed to the Committee of the Whole House and ordered to be printed

Mr. LESINSKI, from the Committee on Immigration and Naturalization submitted the following

REPORT

[To accompany H. R. 10245]

The Committee on Immigration and Naturalization, to whom was referred the bill (H. R. 10245) for the relief of Meier Langermann, his wife, Friederike, and son, Joseph, having considered the same report it back to the House without amendment and recommend that the bill do pass.

PURPOSE OF THE BILL

The purpose of the bill is to direct the Attorney General to record the entry for permanent residence of Meier Langermann, his wife, Friederike, and son, Joseph, as of April 12, 1939.

It also provides that upon the enactment into law of the bill, the Secretary of State shall instruct the proper quota-control officer to deduct three numbers from the Polish quota.

GENERAL INFORMATION

There is no fraud in this case.

This alien and his family are of the Jewish religion, and were formerly residents of Germany, but natives of Poland.

The alien, Meier Langermann, is 53 years of age, his wife is 29 years old, and the son about 18 months.

The alien and his family appeared before a subcommittee of this committee for personal examination. The evidence shows that the aliens had intended to return to their home in Germany where the alien was engaged in manufacturing shoes. He also had a branch factory in France. The evidence submitted shows that he has a substantial sum of money on deposit in the National City Bank of New York and therefore not liable to become a public charge.