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That appears here, gentlemen. It is almost the same bill—the same in substance.
The CHAIRMAN. Pardon me, but may I suggest that when you complete the reading of your statement there that we have the report embodying that put in the record?
Mr. PATTERSON. Yes, sir.
Mr. Hill. In that connection too, Mr. Chairman, I am sure it would be interesting to have the record show who constituted that War Policies Commission. I remember some of them. Of course, I happened to be in Congress at the time, but it was a very outstanding Commission in many ways.
Mr. PATTERSON. As I recall it, it embodied both members of the Cabinet and Members of Congress.
Mr. Hill. Both Members of the House and of the Senate.
Patrick J. Hurley, then Secretary of War, chairman; Senator David A. Reed, vice chairman; Senator Joseph T. Robinson; Representative John J. McSwain; Senator Arthur H. Vandenberg; William D. Mitchell, then Attorney General, as I recall; C. F. Adams, I think then Secretary of the Navy; R. P. Lamont; William P. Holaday; Arthur M. Hyde; W. N. Doak, and Lindley H. Hadley, secretary.
Senator DowNEY. May I intervene to ask if that proposal was made on the hypothesis that we would be in war?
Mr. PATTERSON. An emergency. Senator Downey. But not war? Mr. PATTERSON. During any national emergency declared by Congress.
The only difference I know is that this one was declared by the President and has been recognized by Congress.
Senator LODGE. This is a recommendation?
Senator LODGE. There has never been anything like this in effect before, has there?
Mr. PATTERSON. Similar power, Senator, in the World War; but as to specific articles, like timber.
Senator LODGE. Giving the items.
Mr. PATTERSON. That is right. This is general; those were specific acts,
Senator Hill. I might state too that the War Policies Commission, the membership the Secretary has just read to us, was set up by act of Congress. It was a joint resolution, as I recall, passed by Congress, signed by the President, setting up that War Policies Commission, and tbey devoted many months of time studying this question of what our policies should be in time of an amergency or in time of war, and as the Secretary said, the act to which he has referred, or the suggested act, was one of the things that they strongly recommended.
Mr. PATTERSON. As I recall it, gentlemen, a similar bill was passed by the House in 1935 and was discussed a great deal in the Senate, but died with the end of the session, I think.
Senator Hill. The Secretary is right about that. We did pass such a bill in the House of Representatives. It was passed in the House during the closing days of the session, and the Senate never did act on the bill; but it passed the House of Representatives. - Mr. PATTERSON. I take it that if the country were engaged in war, outright war, the case for this bill would be so plain that all in favor of vigorous prosecution of the war would support it. The need today of procuring arms for the troops in the field is as urgent as if we were in war.
The grant of power to take over property permanently has been criticized. If we are to requisition aluminum or steel and fashion it into airplanes, we cannot return the aluminum or steel. That is the reason for use of the word “permanently.” Again, the grant of power to the President to sell materials requisitioned has been criticized. If a machine tool or a raw material essential to production of armament is requisitioned, it is probable that the best way to make use of it will be to sell it to a concern that has need of it for performing a contract to supply the armed forces with armament. That is the reason for including the power to sell materials requisitioned.
I hold no brief for the exact language of this bill. If the aim can be attained by better phraseology, I hope that better phraseology will be found. But if we limit too much, the cases that may confront us in the future will prove to be cases beyond the reach of the statute.
We are drafting men into the service. Are we to refuse to draft materials into the service? If one who owns a rifle, an airplane, or a machine tool essential to our defense says that he would rather keep it for his own use than to receive the value of it, is his personal preference to override the Nation's need? Not if this bill becomes law.
That is my formal statement. .
In my opinion this matter was all decided last fall when the Selective Service Act was passed.
The CHAIRMAN. The Secretary has made mention of section 9 of the Selective Service Act, and at this juncture, I want to ask the reporter to embody section 9 of that act in the record, as it appears on pages 8 and 9 of this volume.
(The section above referred to is as follows:)
Sec. 9. The President is empowered, through the head of the War Department or the Navy Department of the Government, in addition to the present authorized methods of purchase or procurement, to place an order with any individual, firm, association, company, corportion, or organized manufacturing industry for such product or material as may be required, and which is of the nature and kind usually produced or capable of being produced by such individual, firm, company, association, corporation, or organized manufacturing industry.
Compliance with all such orders for products or material shall be obligatory on any individual, firm, association, company, corporation, or organized manufacturing industry or the responsible head or heads thereof and shall take precedence over all other orders and contracts theretofore placed with such individual, firm, company, association, corporation, or organized manufacturing industry, and any individual, firm, association, company, corporation, or organized manufacturing industry or the responsible head or heads thereof owning or operating any plant equipped for the manufacture of arms or ammunition or parts of ammunition, or any necessary supplies or equipment for the Army or Navy, and any individual, firm, association, company, corporation, or organized manufacturing industry or the responsible head or heads thereof owning or operating any manufacturing plant, which, in the opinion of the Secretary of War or the Secretary of the Navy shall be capable of being readily transformed into a plant for the manufacture of arms or ammunition, or parts thereof, or other necessary supplies or equipment, who shall refuse to give to the United States such preference in the matter of the execution of orders, or who shall refuse to manufacture the kind, quantity, or quality of arms or ammunition, or the parts thereof, or any necessary supplies or equipment, as ordered by the Secretary of War or the Secretary of the Navy, or who shall refuse to furnish such arms, ammunition, or parts of ammunition, or other supplies or equipment, at a reasonable price as determined by the Secretary of War or the Secretary of the Navy, as the case may be, then, and in either such case, the President, through the head of the War or Navy Departments of the Government, in addition to the present authorized methods of purchase or procurement, is hereby authorized to take immediate possession of any such plant or plants, and through the appropriate branch, bureau, or department of the Army or Navy to manufacture therein such product or material as may be required, and any individual, firm, company, association, or corporation, or organized manufacturing industry, or the responsible head or heads thereof, failing to comply with the provisions of this section shall be deemed guilty of a. felony, and upon conviction shall be punished by imprisonment for not more than three years and a fine not exceeding $50,000.
The compensation to be paid to any individual, firm, company, association, corporation, or organized manufacturing industry for its products or material, or as rental for use of any manufacturing plant while used by the United States, shall be fair and just: Provided, That nothing herein shall be deemed to render inapplicable existing State or Federal laws concerning the health, safety, security, and employment standards of the employees in such plant.
The first and second provisos in section 8 (b) of the Act entitled “An Act to expedite national defense, and for other purposes”, approved June 28, 1940 (Public Act Numbered 671, Seventy-sixth Congress), are hereby repealed.
I also want to have inserted in the record an amendment introduced in and passed by the Senate, as section 2 of S. 1524. This amendment was introduced by Senator Connally and provides certain powers in reference to that section.
(The amendment above referred to is as follows:)
SEC. 2. That section 9 of the Selective Training and Service Act of 1940 is hereby amended by adding at the end thereof the following new paragraph:
“The power of the President under the foregoing provisions of this section to take immediate possession of any plant upon a failure to comply with any such provisions, and the authority granted by this section for the use and operation by the United States of any plant of which possession is so taken, shall also apply as hereinafter provided (1) to any plant equipped for the manufacture of any articles or materials which may be required for the national defense or which may be useful in connection therewith, and (2) to any plant which, in the opinion of the Secretary of War or the Secretary of the Navy, is capable of being readily transformed into a plant equipped for the manufacture of any such articles or materials. Such power and authority may be exercised with respect to any such plant during the existence of the unlimited national emergency proclaimed by the President on May 27, 1941, or in time of war in which the United States is engaged, whenever the President finds, after investigation, (1) that the nationaldefense program will be impeded or delayed by an existing or threatened failure of production at such plant as a result of a strike or threatened strike, or lockout, or other cause, (2) that the exercise of such power and authority is necessary or desirable in the public interest, and (3) if such existing or threatened failure of production is due primarily to a labor dispute, that either or both parties to such dispute have failed to utilize existing Government conciliation and mediation facilities in an effort to settle such dispute, or that despite use of such facilities the dispute has not been settled and a failure of production exists or is threatened: Provided, That with respect to any plant of which possession shall have been taken under the provisions of this paragraph, such plant shall be returned to its owners whenever the President determines that such plant will be privately operated in a manner consistent with the needs of the national defense.”
The CHAIRMAN. I also wish to insert in the record the lend-lease act. (The document referred to follows:)
[PUBLIC Law 11-77TH CONGRESS]
[CHAPTER 11—1st SESSION]
[H, R. 1776] AN ACT Further to promote the defense of the United States, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as “An Act to Promote the Defense of the United States”.
SEC. 2. As used in this Act-
(1) Any weapon, munition, aircraft, vessel, or boat;
(2) Any machinery, facility, tool, material, or supply necessary for the manufacture, production, processing, repair, servicing, or operation of any article described in this subsection;
(3) Any con.ponent material or part of or equipment for any article described in this subsection;
(4) Any agricultural, industrial or other commodity or article for defense. Such term "defense article” includes any article described in this subesction: Manufactured or procured pursuant to section 3, or to which the United States or any foreign government has or hereafter acquires title, possession, or control.
(b) The term “defense information” means any plan, specification, design, prototype, or information pertaining to any defense article.
Sec. 3. (a) Notwithstanding the provisions of any other law, the President may, from time to time, when he deems it in the interest of national defense, authorize the Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government
(1) To manufacture in arsenals, factories, and shipyards under their jurisdiction, or otherwise procure, to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress, or both, any defense article for the government of any country whose defense the President deems vital to the defense of the United States.
(2) To sell, transfer title to, exchange, lease, lend, or otherwise dispose of, to any such government any defense article, but no defense article not manufactured or procured under paragraph (1) shall in any way be disposed of under this paragraph, except after consultation with the Chief of Staff of the Army or the Chief of Naval Operations of the Navy, or both. The value of defense articles disposed of in any way under authority of this paragraph, and procured from funds heretofore appropriated, shall not exceed $1,300,000,000. The valle of such defense articles shall be determined by the head of the department or agency concerned or such other department. agency, or officer as shall be designated in the manner provided in the rules and regulations issued hereunder. Defense articles procured from funds hereafter appropriated to any department or agency of the Government, other than from funds authorized to be appropriated under this Act, shall not be disposed of in any way under authority of this paragraph except to the extent hereafter authorized by the Congress in the Acts appropriating such funds or otherwise.
(3) To test, inspect, prove, repair, outfit, recondition, or otherwise to place in good working order, to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress, or both, any defense article for any such government, or to procure any or all such services by private contract.
(4) To communicate to any such government any defense information, pertaining to any defense article furnished to such government under paragraph (2) of this subsection.
(5) To release for export any defense article disposed of in any way under this subsection to any such government. (b) The terms and conditions upon which any such foreign government receives any aid authorized under subsection (a) shall be those which the President deems satisfactory, and the benefit to the United States may be payment or
repayment in kind or property, or any other direct or indirect benefit which the President deems satisfactory.
(c) After June 30, 1943, or after the passage of a concurrent resolution by the two Houses before June 30, 1943, which declares that the powers conferred by or pursuant to subsection (a) are no longer necessary to promote the defense of the United States, neither the President nor the head of any department or agency shall exercise any of the powers conferred by or pursuant to subsection (a); except that until July 1, 1946, any of such powers may be exercised to the extent necessary to carry out a contract or agreement with such a foreign government made before July 1, 1943, or before the passage of such concurrent resolution, whichever is the earlier.
(d) Nothing in this Act shall be construed to authorize or to permit the authorization of convoying vessels by naval vessels of the United States.
(e) Nothing in this Act shall be construed to authorize or to permit the authorization of the entry of any American vessel into a combat area in violation of section 3 of the Neutrality Act of 1939.
SEC. 4. All contracts or agreements made for the disposition of any defense article or defense information pursuant to section 3 shall contain a clause by which the foreign government undertakes that it will not, without the consent of the President, transfer title to or possession of such defense article or defense information by gift, sale, or otherwise, or permit its use by anyone not an officer, employee, or agent of such foreign government.
SEC. 5. (a) The Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government involved shall, when any such defense article or defense information is exported, immediately inform the department or agency designated by the President to administer section 6 of the Act of July 2, 1940 (54 Stat. 714), of the quantities, character, value, terms of disposition, and destination of the article and information so exported.
(b) The President from time to time, but not less frequently than once every ninety days, shall transmit to the Congress a report of operations under this Act except such information as he deems incompatible with the public interest to disclose. Reports provided for under this subsection shall be transmitted to the Secretary of the Senate or the Clerk of the House of Representatives, as the case may be, if the Senate or the House of Representatives, as the case may be, is not in session.
Sec. 6. (a) There is hereby authorized to be appropriated from time to time, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary to carry out the provisions and accomplish the purposes of this Act.
(b) All money and all property which is converted into money received under section 3 from any government shall, with the approval of the Director of the Budget, revert to the respective appropriation or appropriations out of which funds were expended with respect to the defense article or defense information for which such consideration is received, and shall be available for expenditure for the purpose for which such expended funds were appropriated by law, during the fiscal year in which such funds are received and the ensuing fiscal year; but in no event shall any funds so received be available for expenditure after June 30, 1946.
SEC. 7. The Secretary of War, the Secretary of the Navy, and the head of the department or agency shall in all contracts or agreements for the disposition of any defense article or defense information fully protect the rights of all citizens of the United States who have patent rights in and to any such article or information which is hereby authorized to be disposed of and the payments collected for royalties on such patents shall be paid to the owners and holders of such patents.
Sec. 8. The Secretaries of War and of the Navy are hereby authorized to purchase or otherwise acquire arms, ammunition, and implements of war produced within the jurisdiction of any country to which section 3 is applicable, whenever the President deems such purchase or acquisition to be necessary in the interests of the defense of the United States.
Sec. 0. The President may, from time to time, promulgate such rules and regulations as may be necessary and proper to carry out any of the provisions of this Act; and he may exercise any power or authority conferred on him by this Act through such department, agency, or officer as he shall direct.
SEC 10. Nothing in this Act shall be construed to change existing law relating to the use of the land and naval forces of the United States, except insofar as such use relates to the manufacture, procurement, and repair of defense articles, the communication of information, and other noncombatant purposes enumerated in this Act.