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advice and consent of the Senate: Provided, That the provisions of section 1761 of the Revised Statutes shall not apply to any such appointee and the salary of any person so appointed shall not be increased for a period of 6 months after confirmation.

CIVILIAN CONSERVATION CORPS

Section 38: It is recommended by the committee that the following new section authorizing training of enrollees of the Civilian Conservation Corps in noncombatant subjects essential to the operations of the Military and Naval Establishments and which would contribute materially to the interests of national defense be added to the bill:

"Sec. 38. Notwithstanding the provisions of any other law, the President is authorized, in his discretion, and under such regulations as he may prescribe, to provide within the Civilian Conservation Corps such training of enrollees therein in noncombatant subjects essential to the operations of the Military and Naval Establishments as he considers may contribute materially to the interests of the national defense. Such subjects may include, but are not restricted to, cooking, baking, first aid to the injured, operation and maintenance of motor vehicles, road and bridge construction and maintenance, photography, signal communications, and other matters incident to the successful conduct of military and naval activities: Provided, That the appropriations under the heading Civilian Conservation Corps" contained in the Federal Security Agency Appropriation Act, 1941, shall be available for carrying out the purposes of this section, and the limitations and conditions on the expenditure of such funds are hereby waived to the extent necessary to accomplish the purposes of this section: Provided further, That no person shall be excluded from the training program authorized by this section on account of race, color, or creed.

AMENDMENT TO THE TENNESSEE VALLEY AUTHORITY ACT OF 1933

Section 39: The following amendment in the form of a new section is recommended by the Committee. This amendment authorizes the Tennessee Valley Authority to make payments to certain States and local governments in lieu of taxation from the gross proceeds derived by the Corporation.

Sec. 38. Section 13 of the Tennessee Valley Authority Act of 1933 is hereby amended to read as follows:

Sec. 13. In order to render financial assistance to those States and local governments in which the power operations of the Corporation are carried on and in which the Corporation has acquired properties previously subject to State and local taxation, the board is authorized and directed to pay to said States, and the counties therein, for each fiscal year, beginning July 1, 1940, the following percentages of the gross proceeds derived from the sale of power by the Corporation for the preceding fiscal year as hereinafter provided, together with such additional amounts as may be payable pursuant to the provisions hereinafter set forth, said payments to constitute a charge against the power operations of the Corporation: For the fiscal year (beginning July 1) 1940, 10 per centum; 1941, 9 per centum; 1942, 8 per centum; 1943, 742 per centum; 1944, 7 per centum; 1945; 672 per centum; 1946, 6 per centum; 1947, 542 per centum; 1948 and each fiscal year thereafter, 5 per centum. Gross proceeds', as used in this section is defined as the total gross proceeds derived by the Corporation from the sale of power for the preceding fiscal year, excluding power used by the Corporation or sold or delivered to any other department or agency of the Government of the United States for any purpose other than the resale thereof. The payments herein authorized are in lieu of taxation, and the Corporation, its property, franchises and income, are hereby expressly exempted from taxation in any manner or form by any State, county, municipality, or any subdivision or district thereof.

The payment for each fiscal year shall be apportioned among said States in the following manner: One-half of said payment shall be apportioned by paying to each State the percentage thereof which the gross proceeds of the power sales by the Corporation within said State during the preceding fiscal year bears to the total gross proceeds from all power sales by the Corporation during the preceding fiscal year; the remaining one-half of said payment shall be apportioned by paying to each State the percentage thereof which the book value of the power property held by the Corporation within said State at the end of the preceding fiscal year bears to the total book value of all such property held by the Corporation on the same date. The book value of power property shall include that portion of the investment allocated or estimated to be allocable to power: Provided, That the minimum annual payment to each State (including payments to counties therein) shall not be less than an amount equal to the two-year average of the State and local ad valorem property taxes levied against power property purchased and operated by the Corporation in said State and against that portion of reservoir lands related to dams constructed by or on behalf of the United States Government and held or operated by the Corporation and allocated or estimated to be allocable to power.

The said two-year average shall be calculated for the last two tax years during which said property was privately owned and operated or said land was privately owned: Provided further, That the minimum annual payment to each State in which the Corporation owns and operates power property (including payments counties therein) shall not be less than $10,000 in any case: Provided further, That the Corporation shall pay directly to the respective counties the two-year average of county ad valorem property taxes (including taxes levied by taxing districts within the respective counties) upon power property and reservoir lands allocable to power, determined as above pro vided, and all payments to any such county within a State shall be deducted from the payment otherwise due to such State under the provisions of this section. The determination of the board of the amounts due hereunder to the respective States and counties shall be final.

The payments above provided shall in each case be made to the State or county in equal monthly installments beginning not later than July 31, 1940.

Nothing herein shall be construed to limit the authority of the Corporation, in its contracts for the sale of power to municipalities, to permit or provide for the resale of power at rates which may include an amount to cover tax-equivalent payments to the municipality in lieu of State, county, and municipal taxes upon any distribution system or property owned by the municipality, or any agency thereof, conditioned upon a proper distribution by the municipality of any amounts collected by it in lieu of State or county taxes upon any such distribution system or property; it being the intention of Congress that either the municipality of the State in which the municipality is situated shall provide for the proper distribution to the State and county of any portion of tax equivalent so collected by the municipality in lieu of State or county taxes upon any such distribution system or property.

"The Corporation shall, not later than January 1, 1945, submit to the Congress G report on the operation of the provisions of this section, including a statement of the distribution to the various States and counties hereunder; the effect of the operation of the provisions of this section on State and local finances; an appraisal of the benefits of the program of the Corporation to the States and counties receiving payments hereunder, and the effect of such benefits in increasing taxable values within such States and counties; and such other data, information, and recommendations as may be pertinent to future legislation."

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SENATE

76TH CONGRESS

3d Session

}

REPORT No. 1755

FRANK E. SHANKS, AS LEGAL GUARDIAN OF ISOBELL

SHANKS, A MINOR

JUNE 5 (legislative day, May 28), 1940.-Ordered to be printed

Mr. CAPPER, from the Committee on Claims, submitted the following

REPORT

[To accompany H. R. 6548)

The Committee on Claims, to whom was referred the bill (H. R. 6548) for the relief of Isobell Shanks, having considered the same, report favorably thereon with the recommendation that the bill do pass without amendment.

The facts are fully set forth in House Report No. 2235, Seventysixth Congress, third session, which is appended hereto and made a part of this report.

(H. Rept. No. 2235, 76th Cong., 3d sess.) The Committee on Claims, to whom was referred the bill (H. R. 6548) for the relief of Isobell Shanks, having considered the same, report favorably thereon with amendments and recommend that the bill, as amended, do pass.

The amendments are as follows:
Line 5, after the word "to", insert "Frank E. Shanks, as legal guardian of”.

Line 6, strike out the sign and figures “$10,000” and insert in lieu thereof "$3,500".

Line 9, strike out the words "the said" and insert in lieu thereof "his minor daughter'.

At the end of the bill add: “: Provided, That no part of the amount appropriated in this Act in excess of 10 per centum thereof shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not exceeding $1,000.”

The purpose of the proposed legislation is to pay to Frank E. Shanks, as legal guardian of Isobell Shanks, of Waveland, Ind., the sum of $3,500 in full settlement of all claims against the United States on account of personal injuries sustained by his minor daughter, Isobell Shanks, when the automobile in which she was a passenger was struck on June 24, 1938, near Waveland, Ind., by a truck owned by the Civilian Conservation Corps and operated by an employee of the corps.

STATEMENT OF FACTS

On June 24, 1938, Mr. William E. Search was driving his automobile in a northeasterly direction on a county road about 1 mile north of Waveland, Ind. Mr. Search had with him as passengers, his three daughters and Isobell Shanks, aged 9 years. Mr. Search was proceeding on his proper side of the road at a speed of about 15 miles per hour. At the same time a one-half ton truck in the service of the Civilian Conservation Corps was being driven by Oliver Morgan in the opposite direction and in the middle of the road around a curve (left for the Government driver). Due to high weeds growing on the roadside the vision of the Government driver was obscured and he failed to see Mr. Search's car approaching until it was too late to avoid an accident. The two vehicles collided head-on and caused serious injuries to the Shanks girl.

Immediately after the accident Isobell Shanks was taken to Culver Hospital where an injury to her head was dressed. Extreme nervousness, nausea, pain, and swelling of her head indicated fracture. An X-ray picture revealed a comminuted stellate fracture of the right temporal bone and laceration of the scalp just in front of and above the right ear. A statement made by Miss Shanks' doctor on July 10, 1939, read in part as follows:

Her recovery is yet incomplete. Her nervous condition abnormally excitable, is entirely a result of this accident. She has a very noticeable disarrangement of a portion of the right temporal bone.

"Her present condition caused by the injury is such that she has been refused insurance. Recovery might eventually be complete, but there is room for doubt on this point at present.

It will be noted that this statement of Dr. James S. Noblitt was made more than a year after the date of the accident, and that he expresses doubt as to the possibility of the child ever completely recovering. Furthermore, the fact that insurance has been refused her indicates that the child is not in good shape at the present time, nor is she likely to be for some time in the future, if at all.

Mr. Shanks, the father of the injured child, submitted to the War Department bills for actual medical and hospital expenses amounting to $178. In view of the expenses already undergone and the likelihood of considerable disability for some time to come, it is the opinion of your committee that the amount of $3,500 should be awarded to Mr. Shanks, as legal guardian of his daughter, Isobell.

Appended hereto is the report of the War Department, together with other pertinent evidence.

WAR DEPARTMENT,

Washington, July 17, 1939. Hon. AMBROSE J. Kennedy, Chairman, Committee on Claims,

House of Representatives, Washington, D. C. DEAR MR. KENNEDY: Careful consideration has been given the bill H. R. 6548, Seventy-sixth Congress, first session, for the relief of Isobell Shanks, which was transmitted to the War Department under date of June 21, 1939, with request for information and views of the Department relative thereto.

The purpose of the proposed legislation is to pay to Isobell Shanks, of Waveland, Ind., the sum of $10,000 in full settlement of all claims against the United States on account of personal injuries sustained by her when the automobile in which she was a passenger was struck on June 24, 1938, near Waveland, Ind., by a truck operated in connection with the Civilian Conservation Corps.

On June 24, 1938, a Government vehicle on official business and operated in connection with the Civilian Conservation Corps activities of the War Department, was proceeding in the middle of the road in a southwesterly direction around a curve (left for Government driver), on a county road about 1 mile north of Waveland, Ind., at a speed of about 25 miles per hour. Mr. William E. Search, driving a car owned by himself and Alice Haisot Search, with Isabel Shanks, age 9 years, among others was proceeding on his proper side of the road, in the opposite direction, at a speed of about 15 miles per hour. Due to high weeds growing on the roadside, the vision of the Government driver was obscured and he failed to observe Mr. Search's car approaching until it was too late to avoid an accident. The two vehicles collided, thereby causing Miss Shanks to suffer a small laceration of the scalp just in front of and above the right ear, and a fracture of the right temporal bone. Miss Shanks was examined by an Army medical officer and two civilian physicians on November 7, 1938, who reported that on that date they found the laceration had left no visible scar and the fracture had healed in a normal manner, and that there would be no future treatment needed, nor future

pathological conditions developed by her as a result of the injuries she sustained in this accident.

Mr. Frank E. Shanks, the father of Miss Isabel Shanks, presented a claim to the War Department in the amount of $10,000 and in support of his claim presented bills for medical and hospital expenses amounting to $178 incurred by him as a result of this accident.

Upon review of the claim by the War Department it was determined that the proximate cause of the accident was the negligence of the Government driver in that he was proceeding in the middle of the road around a blind curve, thus encroaching on the right-of-way of the civilian car. The claim for medical and hospital expenses was determined to be properly for approval under the provisions of the act of June 28, 1937 (50 Stat. 319), provided the claimant would agree to accept the amount of $178 in full satisfaction and release of his claim against the Government for such hospital and medical expenses, there being no authority of law or appropriation available to the War Department to settle claims for personal injuries other than for such limited expenses as indicated above. This amount Mr. Shanks has declined to accept.

In view of the above, it appears that as a result of the negligence of the driver of the Government vehicle Mr. Shanks has suffered some expenses as a result of this accident, and that Miss Shanks has suffered personal injuries for which they have not been compensated. While the War Department is not prepared to pass upon the precise degree of injuries sustained or the amount that should be allowed under the circumstances, it will interpose no objection to the enactment of legislation to compensate them in such amount as the Congress may deem proper to allow. Sincerely yours,

HARRY H. WOODRING,

Secretary of War.

WAVELAND, IND. On June 24, 1938, I was called to the scene of an automobile accident north of Waveland to render aid to the injured, among them Isobel Shanks. I took her to Culver Hospital where her head injury was dressed. Extreme nervousness, nausea, pain, and swelling of her head indicated fracture. An X-ray picture revealed the following: Comminuted stellate fracture of the right temporal bone and laceration of the scalp just in front and above the right ear.

Her recovery as yet is incomplete. Her nervous condition, abnormally excitable, is entirely a result of the accident. She has a very noticeable disarrangement of a portion of the right temporal bone. The enclosed photostatic copy of the X-ray picture is a very poor reproduction of what the original reveals.

Her present condition caused by the injury is such that she has been refused insurance. Recovery might eventually be complete but there is room for doubt on this point at present.

JAMES S. NOBLITT, M. D. Subscribed and sworn to before me this 10th day of July 1939. (SEAL)

J. K. MILLIGAN, Notary Public. My commission expires January 3, 1942.

STATEMENT OF WILLIAM E. SEARCH

WAVELAND, IND., July 28, 1939. Subject: Automobile collision causing injury to Isabel Shanks.

1. On June 24, 1939, about 8:45 a. m., I was driving my own automobile on a county road about 1 mile north of Waveland, Ind. In the car with me were Isabel Shanks and my three daughters—Marion, Pauline, and Virginia.

2. On turning a curve while traveling at a speed of approximately 15 miles per hour and on my right side of the road, my automobile was struck, head on, by the United States Army Civilian Conservation Corps truck, stationed at Civilian Conservation Corps camp SCS-3, Waveland, Ind., and driven by Enrollee Oliver Morgan.

3. Among the occupants of my car who were injured was Miss Isabel Shanks, who, according to medical reports, received a stellate fracture of the skull.

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