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PUBLIC LAWS

ENACTED DURING THE

FIRST SESSION OF THE SEVENTY-SEVENTH CONGRESS

OF THE

UNITED STATES OF AMERICA

Begun and held at the City of Washington on Friday, January 3, 1941, and adjourned without day on Friday, January 2, 1942

FRANKLIN D. ROOSEVELT, President; HENRY A. WALLACE, Vice President; PAT HARRISON,' President of the Senate pro tempore; LISTER HILL, Acting President of the Senate pro tempore, March 31 and June 5, 1941; CARTER GLASS, Acting President of the Senate pro tempore, May 23, 1941, and elected President of the Senate pro tempore, July 10, 1941; KENNETH MCKELLAR, Acting President of the Senate pro tempore, August 4-5 and 15-19, October 2 and 9, 1941; WALTER F. GEORGE, Acting President of the Senate pro tempore, December 30, 1941-January 2, 1942; SAM RAYBURN, Speaker of the House of Representatives; CLIFTON A. WOODRUM, Speaker of the House of Representatives pro tempore, August 15September 15, 1941; JERE COOPER, Speaker of the House of Representatives pro tempore, October 27-November 6, 1941; WILLIAM P. COLE, Jr., Speaker of the House of Representatives pro tempore, December 23, 1941-January 2, 1942.

[CHAPTER 1]

AN ACT

To authorize major alterations to certain naval vessels.

January 29, 1941
[H. R. 1053]
[Public Law 1]

Combatant and
Antiaircraft de-

fenses.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the pur- auxiliary vessels. pose of improving antiaircraft defenses of combatant and auxiliary vessels of the United States, alterations to such vessels are hereby authorized, and expenditures therefor shall not be limited by the provisions of the Act approved July 18, 1935 (49 Stat. 482; 5 U. S. C., Supp. V, sec. 468a), but the total cost of such alterations shall not exceed $300,000,000.

Approved, January 29, 1941.

[CHAPTER 2]

AN ACT

To remove certain limitations on appropriations for the pay of midshipmen, and for other purposes.

5 U. S. C. § 468a.

January 30, 1941
[H. R. 2318]
[Public Law 2]

Naval Academy. Pay of certain mid54 Stat. 277.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That so much of the Act approved June 11, 1940 (Public, Numbered 588, Seventy-sixth shipmen. Congress), as relates to the pay of midshipmen whose admission subsequent to January 30, 1940, would result in exceeding the allowance specified in such Act, is hereby repealed.

SEC. 2. The number of midshipmen who may be appointed each year at large under the provisions of the Act approved December 20, 1917, as amended (40 Stat. 430; 34 U. S. C. 1032), is hereby increased from fifteen to twenty-five, and the number who may be appointed each year by the Secretary of the Navy under the provisions of 1 [Died June 22, 1941, 6: 45 a. m.]

3

of midshipmen appointed at large, etc.

Increase in number

34 U. S. C. § 855f.

Vacancies.

34 U. S. C. § 8551.

January 31, 1941 (H. J. Res. 80] [Public Law 3]

54 Stat. 1001.

26 U.S. C. §124 (f) (1). Post, p. 757.

54 Stat. 1002.

26 U.S.C.§124 (f) (3). Post, p. 757.

Effectiveness of cer

tificate.

Proviso.

Time for making certificate.

54 Stat. 1002.

26 U. S. C. § 124 (i). Post, p. 757.

Applicability of amendments.

54 Stat. 974, 1018.

section 307 of the Naval Reserve Act of 1938 (52 Stat. 1182; U. S. C., Supp. V, title 34, sec. 855f) is hereby increased from fifty to one hundred.

SEC. 3. In the event that the quota of midshipmen authorized by section 307 of title III of the Naval Reserve Act of 1938 (52 Stat. 1182; U. S. C., Supp. V, title 34, sec. 855f), as amended herein, to be appointed from the enlisted men of the Naval Reserve and the Marine Corps Reserve is not filled in any one year the Secretary of the Navy shall have authority to fill such vacancies with enlisted men from the Regular Navy or Marine Corps.

Approved, January 30, 1941.

[CHAPTER 3]

JOINT RESOLUTION

To amend section 124 of the Internal Revenue Code by extending the time for certification of national-defense facilities and contracts for amortization purposes.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That section 124 (f) (1) of the Internal Revenue Code is amended by striking out ", within the time specified in paragraph (3) of this subsection, and".

SEC. 2. Section 124 (f) (3) of the Internal Revenue Code is amended to read as follows:

"The certificate provided for in paragraph (1) shall have no effect unless an application therefor is filed before the expiration of sixty days after the beginning of such construction, reconstruction, erection, or installation or the date of such acquisition, or before February 6, 1941, whichever is later: Provided, That in no event and notwithstanding any of the other provisions of this section, no amortization deduction shall be allowed in respect of any emergency facility for any taxable year unless a certificate in respect thereof under paragraph (1) of this subsection shall have been made prior to the making of the election, pursuant to subsection (b) and (d) (4) of this section, to take the amortization deduction and begin the sixty-month period in or with such taxable year, or before February 6, 1941, whichever is later." SEC. 3. Section 124 (i) of the Internal Revenue Code is amended(a) By striking out from the first sentence thereof ", before the expiration of ninety days after the making of such contract or one hundred and twenty days after the date of the enactment of the Second Revenue Act of 1940, whichever of such periods expires the later,":

(b) By striking out from the second sentence thereof ", before the expiration of ninety days after the making of a contract or one hundred and twenty days after the date of the enactment of the Second Revenue Act of 1940, whichever of such periods expires the later,"; and

(c) By adding after the second sentence thereof a new sentence to read as follows: "The certificates provided for under this subsection shall have no effect unless an application therefor is filed before the expiration of sixty days after the making of such contract, or before February 6, 1941, whichever is later."

SEO. 4. The amendments made by this joint resolution to section 124 of the Internal Revenue Code shall be applicable as if they were a part of such section on the date of the enactment of the Second Revenue Act of 1940.

Approved, January 31, 1941.

[CHAPTER 4]

AN ACT

Feb. 6, 1941

Authorizing appropriations for additional shipbuilding and ordnance manufacturing facilities and equipment for the United States Navy, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in addition to the sums authorized to be appropriated by the Act of June 14, 1940 (Public, Numbered 629, Seventy-sixth Congress), and the Act of July 19, 1940 (Public, Numbered 757, Seventy-sixth Congress), there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, $315,000,000 for essential equipment and facilities at either private or naval establishments for building or equipping any complete naval vessel or portion thereof heretofore or hereafter authorized, and $194,000,000 for essential equipment and facilities for the manufacture or production of ordnance material, munitions, and armor at either private or naval establishments. The authority herein granted shall include the authority to acquire lands at such locations as the Secretary of the Navy, with the approval of the President, may deem best suited to the purpose, erect buildings, and acquire the necessary machinery and equipment.

January 31, 1941
[H. R. 1437]
[Public Law 4]

Navy.
Shipbuilding and

ordnance manufactur-
ink fortior
authorized.

Appropriations

54 Stat. 394, 779. Post, p. 41.

Construction of

Post, p. 41.

SEC. 2. The Secretary of the Navy is authorized to construct not small craft; contracts. to exceed four hundred small craft for patrol, local defense, escort, salvage, and towing services in addition to all such craft heretofore authorized and appropriated for, and he is hereby authorized to enter into contracts for this purpose to a total amount not exceeding $400,000,000.

Approved, January 31, 1941.

[CHAPTER 5]

JOINT RESOLUTION

February 6, 1941
[H. J. Res. 77]
[Public Law 5]

U. S. Maritime
Commission.
Emergency cargo
ship construction.
Appropriation.
Post, pp. 148, 150.

54 Stat. 377.

Making an appropriation to the United States Maritime Commission for emergency cargo ship construction, and for other purposes. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purpose of providing as rapidly as possible cargo ships essential to the commerce and defense of the United States there is hereby appropriated to the United States Maritime Commission, out of any money in the Treasury not otherwise appropriated, the sum of $313,500,000, to remain available until expended, which amount shall be additional to the $500,000 allocated from the Emergency Fund for the President in the Military Appropriation Act, 1941, and $36,000,000 to be allocated during the fiscal year 1942 from funds available for the payment of obligations incurred for the purposes hereof under the contract authorizations under such emergency fund for the President, the total of such sums, aggregating $350,000,000, to be known as the "Emer- Construction Fund. gency Ship Construction Fund, United States Maritime Commission", which fund shall be available for the payment of said contract authorizations and for (1) the construction in the United States of ocean-going cargo vessels of such type, size, and speed as the Com- ocean-going cargo mission may determine to be useful in time of emergency for carrying on the commerce of the United States and to be capable of the most rapid construction; (2) the production and procurement of parts, curement of parts. equipment, material, and supplies for such ships; (3) the establishment, acquisition, construction, enlargement, or extension of plants or facilities, on land whether owned by the Government or otherwise owned (including the acquisition by purchase or condemnation of

Emergency Ship
Post, p. 681.

Construction of

Production and proEstablishment, etc., of plants.

penses.

Provisos.

Employment of per

sonnel.

Persons advocating

overthrow of U. 3. Government; restric

tions.

real property or any interest therein), to be used for the construction of ships or for the production of parts, equipment, supplies, or material therefor, and the maintenance, repair, operation (under lease or Administrative ex- otherwise), and management of such plants and facilities; and (4) all administrative expenses in connection with the program provided herein including personal services at the seat of government and elsewhere: Provided, That the employment of personnel engaged in the maintenance, repair, operation, or management of plants or facilities shall be without regard to the civil service and classification laws: Provided further, That no part of this appropriation shall be used to pay the salary or wages of any person who advocates, or who is a member of an organization that advocates, the overthrow of the Government of the United States by force or violence: Provided further, That for the purposes hereof an affidavit shall be considered prima facie evidence that the person making the affidavit does not advocate, and is not a member of an organization that advocates, the overthrow of the Government of the United States by force or violence: Provided further, That any person who advocates, or who is a member of an organization that advocates, the overthrow of the Government of the United States by force or violence and accepts employment the salary or wages for which are paid from this appropriation shall be guilty of a felony and, upon conviction, shall be fined not more than $1,000 or imprisoned for not more than one year, or both: Provided further, That the above penalty clause shall be in addition to, and not in substitution for, any other provisions of existing law.

Penalty.

Applicability of designated provisions.

1092.

40 U.S. C. §326 note.

SEC. 2. The provisions of section 207 of the Merchant Marine Act, 49 Stat. 1988; 54 Stat. 1936, as amended (46 U. S. C. 1117), and the Act of October 10, 1940 (Public, Numbered 831), shall apply to all the activities and functions which the Commission is authorized to perform under section 1 of this joint resolution; and the Commission is authorized to carry on the objects, activities, and functions provided for in section 1 of this joint resolution, without regard to the provisions of 33 U. S. C. § 733; sections 355, 3648, and 3709 of the Revised Statutes of the United States; section 7 of the Act of May 27, 1930 (46 Stat. 391), relating to the purchase of prison-made goods; the Act of August 24, 1935 (49 740, 3.8. 0.35 270a- Stat. 793), requiring performance and other bonds on public works; section 321 of the Act of June 30, 1932 (47 Stat. 412), relating to the lease of Government property, and any provision of law relating to the disposal of surplus Government property.

31 U. S. C. § 529;

41 U. S. C. § 5.

46 Stat. 392.

18 U. S. C. § 744g.

270d, 303b.

Contract authoriza

tion.

49 Stat. 1985.

46 U. S. C. ch. 27.

Construction, etc., for other Government agencies.

Proviso.

SEO. 3. In addition to contract authorizations for carrying out the provisions of the Merchant Marine Act of 1936, as amended, contained in previous Acts, the United States Maritime Commission is authorized to enter into contract or contracts for the purpose of carrying out the provisions of said Act in an amount not to exceed $65,000,000.

SEC. 4. The Commission is authorized to construct, reconstruct, repair, equip, and outfit, by contract or otherwise, vessels or parts thereof, for any other department or agency of the Government, to the extent that such other department or agency is authorized by law to do so for its own account, and any obligations heretofore or hereafter incurred by the Commission for any of the aforesaid purposes shall not diminish or otherwise affect any contract authorization granted to the Commission: Provided, The obligations incurred or the expenditures made are charged against and, to the amount of such obligation or expenditure, diminish the existing appropriation or contract authorization of such department or agency.

Approved, February 6, 1941.

[CHAPTER 6]

JOINT RESOLUTION

Making an additional appropriation for the Military Establishment for the fiscal year ending June 30, 1941.

February 13, 1941
[H. J. Res. 89]
[Public Law 6]

Clothing and equi

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sum is appropriated, out of any money in the Treasury not other page. wise appropriated, for the Military Establishment for the fiscal year ending June 30, 1941: For clothing and equipage, to be supplemental to, and merged with, previous appropriations under this head for the fiscal year 1941, including the objects and subject to the limitations and conditions specified therein, $175,000,000.

[blocks in formation]

To increase the debt limit of the United States, to provide for the Federal taxation of future issues of obligations of the United States and its instrumentalities, and for other purposes.

54 Stat. 358.

Post, p. 125.

February 19, 1941
[H. R. 2959]
[Public Law 7]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may Pub be cited as the Public Debt Act of 1941.

SEC. 2. (a) Section 21 of the Second Liberty Bond Act, as amended, is further amended to read as follows:

"SEC. 21. The face amount of obligations issued under the authority of this Act shall not exceed in the aggregate $65,000,000,000 outstanding at any one time."

(b) The authority granted in the following provisions of law to issue obligations is terminated:

(1) Section 32 of the Act entitled "An Act to provide ways and means to meet war expenditures, and for other purposes", approved June 13, 1898, as amended (U. S. C., 1934 edition, title 31, sec. 756) (authorizing the issue of $300,000,000 certificates of indebtedness); (2) Section 6 of the First Liberty Bond Act, as amended (U. S. C., 1934 edition, title 31, sec. 755) (authorizing the issue of $2,000,000,000 certificates of indebtedness); and

(3) Section 6 of the Second Liberty Bond Act, as amended (U. S. C., 1934 edition, title 31, sec. 757) (authorizing the issue of $4,000,000,000 of war savings certificates).

Public Debt Act of 1941.

Limitation on obligations.

49 Stat. 21.

31 U. S. C. § 757b.

Termination of authority to issue obligations.

30 Stat. 466.

31 U. S. C. § 756.

40 Stat. 36.
31 U. S. C. § 755.

40 Stat. 291.
31 U. S. C. § 757.

Repeal.

31 U. S. C. § 757b

(c) Section 301 of title III of the Revenue Act of 1940 (54 Stat. 526) (creating a special fund for the retirement of defense obliga- note. tions) is repealed.

SEC. 3. Section 22 of the Second Liberty Bond Act, as amended (U. S. C., title 31, sec. 757c), is amended to read as follows:

"SEC. 22. (a) The Secretary of the Treasury, with the approval of the President, is authorized to issue, from time to time, through the Postal Service or otherwise, United States savings bonds and United States Treasury savings certificates, the proceeds of which shall be available to meet any public expenditures authorized by law, and to retire any outstanding obligations of the United States bearing interest or issued on a discount basis. The various issues and series of the savings bonds and the savings certificates shall be in such forms, shall be offered in such amounts, subject to the limitation imposed by section 21 of this Act, as amended, and shall be issued in such manner and subject to such terms and conditions consistent with subsections (b), (c), and (d) hereof, and including any restrictions on their

49 Stat. 21.

U. S. savings bonds and Treasury savings

certificates.
ceeds.

Issue; use of pro

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