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AUTHORIZING THE REQUISITION OF PERSONAL

PROPERTY

THURSDAY, JULY 31, 1941

HOUSE OF REPRESENTATIVES,
COMMITTEE ON MILITARY AFFAIRS,

Washington, D. C.

The committee met at 10:30 a. m., Hon. Andrew J. May (chairman)
presiding.

The CHAIRMAN. The committee will please be in order. Gentle-
men, I have set this hearing for the consideration of S. 1579, a bill
"To authorize the President of the United States to requisition prop-
erty required for the defense of the United States." The bill has
been passed by the Senate. The Senate conducted rather extensive
hearings, heard some 20 or 25 witnesses.

At the time that I set this hearing on the Senate bill, I was not
aware of the fact that Mr. Faddis has a bill pending in this com-
mittee, H. R. 4959, which deals with a number of subjects, including
the particular subject of the requisitioning of property by the United
States. I think we might well consider both bills together and then
determine in the committee what we wish to do.

It would expedite matters very materially if we could consider
S. 1579.

I announced yesterday that I should like to complete the hearings
on the bill today. There was some objection, I understood, from some
members of the committee. However, we will proceed with the
hearings and get through as soon as we can.

Copies of these bills will be made a part of the record.
S. 1579 and H. R. 4959 are as follows:

IS. 1579, 77th Cong., 1st sess.]

AN ACT To authorize the President of the United States to requisition property required for the defense

of the United States

Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled, That whenever the President, during the national
emergency declared by the President on May 27, 1941, but not later than June 30,
1943, determines that (1) the use of any military or naval equipment, supplies, or
munitions, or component parts thereof, or machinery, tools, or materials necessary
for the manufacture, servicing, or operation of such equipment, supplies, or muni-
tions is needed for the defense of the United States; (2) such need is immediate
and impending and such as will not admit of delay or resort to any other source
of supply; and (3) all other means of obtaining the use of such property for the
defense of the United States upon fair and reasonable terms have been exhausted,
he is authorized to requisition such property for the defense of the United States
upon the payment of fair and just compensation in the manner provided for by
the Act of October 10, 1940 (Public, Numbered 829, Seventy-sixth Congress, third
session), and to dispose of such property in such manner as he may determine is
necessary for the defense of the United States.

1

SEC. 2. Wherever the President determines that property acquired under this Act and retained is no longer needed for the defense of the United States, he shall, if the original owner desires the property and pays the fair value thereof, return such property to the owner; but, in any event, property so acquired and retained shall, if the owner desires the property and pays the fair value thereof, be returned to the owner not later than December 31, 1943.

SEC. 3. The President from time to time, but not less frequently than once every six months, shall transmit to the Congress a report of operations under this Act.

SEC. 4. The President may issue such rules and regulations and require such information as may be necessary and proper to carry out the provisions of this Act, and he may exercise any power or authority conferred on him by this Act through such department, agency, board, or officer as he shall direct or appoint. Passed the Senate July 21, 1941. ATTEST:

EDWIN A. HALSEY,

Secretary.

[H. R. 4959, 77th Cong., 1st sess.]

A BILL To further expedite the strengthening of the national defense, to provide for licensing of exports and imports, 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) the words "United States," as used herein, shall be deemed to include the United States and all areas, dependencies, Territories, and possessions subject to the jurisdiction of the United States, including the Philippine Islands, the Canal Zone, and the District of Columbia.

(b) That the word "person", as used herein, shall be deemed to mean an individual, partnership, association, company, or other unincorporated body of individuals, or corporation, or body politic.

(c) That the words "to conduct business," as used herein, shall be deemed to include

1. pay, satisfy, compromise, or give security for the payment or satisfaction of any debt or obligation;

2. draw, accept, pay, present for acceptance or payment, or indorse any negotiable instrument or chose in action;

3. enter into, carry on, complete, or perform any contract, agreement, or obligation;

4. buy or sell, loan or extend credit, trade in, deal with, exchange, transmit, transfer, assign, or otherwise dispose of, or receive any form of property;

5. have any form of business or commercial communication or intercourse with.

(d) That the words "air carrier," as used herein, shall be deemed to mean any person subject to the jurisdiction of the United States who undertakes, whether directly or indirectly or by a lease or any other arrangement, to engage in air transportation.

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(e) That the word "investment,' as used herein, shall be deemed to mean any property, real or personal, or any evidences of indebtedness, or any evidences of ownership.

SEC. 2. That whenever the President shall determine that the interests of national defense so require and shall make proclamation thereof, it shall be unlawful

(a) To export from, ship from, take out of, import into, or bring within the jurisdiction of the United States any munitions, implement of war, or military equipment, or component parts thereof, or machinery, tools, or supplies and basic or intermediate constituents necessary for the manufacturing, servicing, or operation of any of the foregoing categories, or other articles or materials found by the President to be necessary for the maintenance and support of the military or naval forces or the national defense, except under such rules and regulations as the President may prescribe. Any proclamation issued for the purpose of prohibiting exportation or importation under the authority of this section shall name the articles or material so prohibited: Provided, That upon a determination by the President that the policy pursued by any country or area conflicts with the policy of the United States as now effectuated by the Act of March 11, 1941 (Public Law 11, Seventy-seventh Congress), and is detrimental to the interests of national defense, the President shall proclaim such fact, designating the country or area,

and thereafter it shall be unlawful to import into or bring within the jurisdiction of the United States any article or material from such country or area: Provided further, That the President may except any article or material from such prohibition by making proclamation thereof, naming the article or material excepted.

(b) To conduct within the United States an export or import business which deals with any of the articles and materials designated in a proclamation issued under the authority of section 2 (a), except with license of the President. Such a license may be granted or refused under such rules and regulations as the President may prescribe: Provided, That any refusal of a license shall be predicated upon a determination that the conduct of such a business would be detrimental to the interests of the national defense.

(c) For any person to conduct business of any nature within the United States when such business involves the representation of or conducting business with, directly or indirectly, any person doing business within any area or country which the President, under the authority of section 2 (a), has determined to be pursuing a policy in conflict with the interests of national defense, and has made proclamation thereof, except with license of the President, under such rules and regulations as he may prescribe.

SEC. 3. Whenever the President shall determine that it is necessary for the successful prosecution of the policy of the United States as now effectuated by the Act of March 11, 1941 (Public Law 11, Seventy-seventh Congress), and in the interests of national defense, and shall make proclamation thereof, he may

(a) (1) Suspend or amend the rules and regulations prescribed by the Federal Communications Commission applicable to any or all cable, telegraph, telephone, or radio stations within the United States used for the transmission or receipt of messages to or from any locality outside the United States.

(2) Prescribe additional rules and regulations necessary in the interests of national defense to govern the transmission or receipt of messages by any or all cable, telegraph, telephone, or radio stations with the United States to or from any locality outside the United States.

(3) Require that copies of all messages transmitted from the United States to or received therein from any locality outside the United States by means of cable, telegraph, telephone, or radio communication be kept on file at the station within the United States which transmitted or received the communication, as the case may be, and that such copies be made available for the inspection of such officers as are from time to time authorized to make an inspection, under such rules and regulations as the President may prescribe; Provided, That such inspection shall be made for the sole puropse of discovering any violation or attempted violation of any Act of Congress now or which may hereafter be in effect: Provided further, That the contents of such messages shall not be made public nor revealed to any person other than the officers designated by the President, except that such information may be used in any prosecution instituted for a violation of any United States statute: Provided further, That nothing in this section shall be construed to amend, add to, or change in any way any statute or any rule or regulation of the Federal Communications Commission with respect to cable, telegraph, telephone, or radio stations which operate exclusively within the United States and are not used for the transmission or receipt of messages to or from localities outside the United States.

(b) (1) Issue rules and regulations suspending, amending, or adding to existing rules and regulations governing shipments of mail, parcel post, and express to or from areas outside the jurisdiction of the United States.

(2) Cause to be opened for inspection by such officer or officers as he may authorize, under such rules and regulations as he may prescribe, mail, parcel post, or express which is addressed to any foreign country or which enters the United States from any foreign country: Provided, That such opening and inspection shall be made for the sole purpose of discovering violations of the laws of the United States now or hereafter in effect which relate to the national defense, and that any information secured shall not be made public nor revealed to any person other than the officers designated by the President, except that such information may be used in any prosecution instituted for a violation of any United States statute relating to the national defense: Provided further, That nothing in this section shall be deemed to permit the deletion, erasure, alteration, or change of any of the material contained in such mail, parcel post, or express: Provided further, That this section shall not be applicable to newspapers or periodicals published by any person not wholly or partially controlled by any foreign person. For the purposes of this section the clause "wholly or partially controlled by any foreign person" shall be deemed to mean that 25 per

[graphic]

AUTHORIZING THE REQUISITION

OF PERSONAL PROPERTY STANFORD

HEARINGS

BEFORE THE

LIBRARIES

COMMITTEE ON MILITARY AFFAIRS
HOUSE OF REPRESENTATIVES

SEVENTY-SEVENTH CONGRESS

FIRST SESSION

ON

S. 1579

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IT DIV.

TO AUTHORIZE THE PRESIDENT OF THE UNITED STATES
TO REQUISITION PROPERTY REQUIRED FOR
THE DEFENSE OF THE UNITED STATES

AND

H. R. 4959

TO FURTHER EXPEDITE THE STRENGTHENING OF THE
NATIONAL DEFENSE, TO PROVIDE FOR LICENSING
OF EXPORTS AND IMPORTS, AND FOR

OTHER PURPOSES

61448

JULY 31, 1941

Printed for the use of the Committee on Military Affairs

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1941

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