(2) in case the dwelling accommodations are not the same dwelling accommodations as dwelling accommodations rented or offered for rent by such person during the base period, but are comparable dwelling accommodations to dwelling accommodations rented or offered for rent by such person during the base period, the lowest rent for which such comparable dwelling accommodations were so rented or offered for rent by such person during the base period;

(3) in case the dwelling accommodations are not the same dwelling accommodations, nor dwelling accommodations similar to dwelling accommodations rented or offered for rent by such person during the base period, the lowest rent for which the same or comparable dwelling facilities were rented during the base period by any other person within the same municipality;

(4) in the case of dwelling accommodations to the rent of which paragraph (1), (2), or (3) is applicable, such ceiling as the Administrator may prescribe pursuant to section 207. Any such ceiling so prescribed shall be in lieu of the ceiling applicable under such paragraph; and

(5) in the case of dwelling accommodations to the rent of which paragraph (1), (2), or (3) is not applicable, such ceiling as the Administrator may prescribe pursuant to section 207.

(b) Paragraph (1), (2), and (3) of subsection (a) shall in no case apply to the rent of dwelling accommodations in rural areas or in municipalities having a population of fewer than 10,000 people according to the Federal census of 1940.

EXEMPTIONS

SEC. 206. (a) The Administrator may by regulation or order exempt from the provisions of sections 202, 203, 204, and 205 articles, services, labor, and dwelling accommodations, with respect to which he makes a finding of fact that

(1) such exemption is necessary to promote the national defense; or (2) it is unnecessary that ceilings be applicable to such articles, services, labor, or dwelling accommodations in order to preserve the Nation's price structure and to prevent a rise in the cost of living.

(b) No ceiling shall in any case be applicable to any labor performed for a person who regularly employs less than eight individuals.

POWERS OF ADMINISTRATOR WITH RESPECT TO CEILINGS

SEC. 207. (a) Whenever in the judgment of the Administrator such action is necessary or proper in order to effectuate the purposes of this Act, he shall by regulation or order establish such ceiling or ceilings as in his judgment will be generally fair and equitable to buyers and sellers of the article or articles in question, or to the person or persons performing the services in question and the person or persons for whom they are performed, or to the employees and employer or employers in question, or to the lessor and lessee of dwelling accommodations, as the case may be, and will effectuate the purposes of this

Act. So far as practicable, in establishing a ceiling for any specified article, services, dwelling accommodations, or labor the Administrator shall ascertain and give due consideration to the prices prevailing for such article or services, or the wages prevailing for such labor, or the rent prevailing for such dwelling accommodations, as the case may be, during the base period, and shall make adjustments for such relevant factors as he may determine to be of general applicability in respect of such article, services, rents, or wages, including the following: Speculative fluctuations, general increases or decreases in costs of transportation, general increase or decrease in cost of maintenance and operation, general increases or decreases in costs of living, and general increases or decreases in profits earned by sellers of the article, persons performing such services, employers for whom such labor is performed, and lessors of such dwelling accommodations during and subsequent to the year ending October 12, 1941. Every regulation or order establishing any ceiling under this subsection shall be accompanied by a statement of the considerations involved in the issuance of such regulation or order.

(b) Any ceiling or ceilings may be established under this section in such form and manner, may contain such classifications and differentiations, and may provide for such adjustments, as in the judgment of the Administrator are necessary or proper in order to effectuate the purposes of this Act. Any such ceiling may be established in terms of price, wages, margins, commissions, fees, charges, allowances, or other terms. Except as provided in section 202 (c) (relating to agricultural commodities) the Administrator may establish a ceiling or ceilings under this section with respect to articles, services, and dwelling accommodations below the general market price for the article or articles or services, or the rent for the dwelling accommodations, in effect at the time of the establishment of such ceiling or ceilings.

(c) The Administrator shall exercise his powers under subsections (a) and (b) with respect to agricultural commodities, and with respect to articles derived in whole or in substantial part from agricultural commodities, in such manner as to support prices to farmers for such agricultural commodities at such levels as may be necessary to enable farmers to receive therefor average year-around prices not less than parity.

SEC. 208. Whenever in the judgment of the Administrator such action is necessary or proper in order to effectuate the purposes of this Act, he may, by regulation or order, regulate or prohibit, with respect to any article, speculative or manipulative practices, selling, marketing, or inventory practices (including practices relating to changes in form or quality), hoarding, or other practices, which in his judgment are equivalent to or are likely to result in price increases inconsistent with the purposes of this Act.

PROCEDURE

SEC. 209. (a) Regulations or orders establishing any ceiling or ceilings may be issued after such inquiry as the Administrator deems necessary or proper. Within a period of sixty days after the issuance of any such regulation or order any person subject to the provisions thereof may, in accordance with regulations to be prescribed by the Administrator, file a protest specifically setting forth objections to such regulation or order and affidavits or other written evidence in support of such objections. At any time after the expiration of such sixty days any person subject to the provisions of such regulation or order may file such a protest based solely on grounds arising after the expiration of such sixty days. Within a reasonable time after the filing of any protest under this subsection, but in no event more than thirty days after such filing or ninety days after the issuance of the regulation or order in respect of which the protest is filed, whichever occurs later, the Administrator shall either grant or deny such protest in whole or in part, notice such protest for hearing, or provide an opportunity to present further evidence in connection therewith.

(b) In any proceedings under this Act the Administrator may take official notice of economic and other facts, including facts found by him as a result of action taken under section 212, and may limit such proceedings to the filing of affidavits or other written evidence, or the filing of briefs.

REVIEW

SEC. 210. (a) Any protestant who is aggrieved by the denial or partial denial of his protest, may, within thirty days after such denial, file a complaint with the emergency court of appeals, created pursuant to subsection (c), praying that the regulation or order protested be set aside in whole or in part. A copy of such complaint shall forthwith be served on the Administrator who shall certify and file with such court a transcript of the proceedings in connection with the protest which shall include a statement of the materials of which the Administrator has taken official notice. Upon the filing of such transcript the court shall have exclusive jurisdiction to affirm or set aside such regulation or order, in whole or in part, or to remand the proceeding, except that the regulation

or order may be modified or rescinded by the Administrator at any time notwithstanding the pendency of such complaint. No objection to any regulation or order, and no evidence in support of any objection thereto, shall be considered by the court, unless such objection shall have been set forth by complainant in the protest or such evidence shall be contained in the transcript. If application is made to the court by either party for leave to introduce additional evidence which was either offered to the Administrator and not admitted, or which could not reasonably have been offered to the Administrator, and the court determines that such evidence is material, the court shall order the evidence to be presented to the Administrator. The Administrator shall promptly receive the same, and such other evidence as he deems necessary or proper, and thereupon he shall certify and file with the court a transcript thereof, and any modification made in the regulation or order as a result thereof, except that on request by the Administrator, any such additional evidence may be presented directly to the court.

(b) No such regulation or order shall be set aside, in whole or in part, unless the complainant establishes to the satisfaction of the court that the regulation or order is not in accordance with law, or is arbitrary or capricious. The effectiveness of a judgment of the court setting aside in whole or in part any such regulation or order shall be postponed until the expiration of thirty days from the entry thereof, except that if a petition for a writ of certiorari is filed with the Supreme Court under subsection (d) within such thirty days, the effectiveness of such judgment shall be postponed until an order of the Supreme Court denying such petition becomes final, or until other final disposition of the case by the Supreme Court.

(c) There is hereby created a court of the United States to be known as the Emergency Court of Appeals, which shall consist of three or more judges to be designated by the Chief Justice of the United States from judges of United States district courts and courts of appeals. The Chief Justice of the United States shall designate one of such judges as chief judge of the Emergency Court of Appeals, and may, from time to time, designate additional judges for such court and revoke previous designations. The chief judge may, from time to time, divide the court into divisions of three or more members, and any such division may render judgment as the judgment of the court. The court shall have the powers of a district court with respect to the jurisdiction conferred on it by this Act, except that it shall exercise its powers and prescribe rules governing its procedure in such manner as to expedite the determination of cases of which it has jurisdiction under this Act. The court shall have a seal, hold sessions at such places as it may specify, and appoint a clerk and such other employees as it deems necessary or proper.

(d) Within thirty days after entry of a judgment, interlocutory or final, by the Emergency Court of Appeals a petition for a writ of certiorari may be filed in the Supreme Court of the United States, and thereupon the judgment shall be subject to review by the Supreme Court in the same manner as a judgment of a circuit court of appeals as provided in section 240 of the Judicial Code, as amended (U. S. C., 1934 edition, title 28, sec. 347). The Supreme Court shall expedite the disposition of all causes filed therein pursuant to this subsection. The Emergency Court of Appeals, and the Supreme Court upon review of judgments of the Emergency Court of Appeals, shall have exclusive jurisdiction to determine the validity of any ceiling under this Act, and of the provisions of this Act authorizing any regulation or order establishing any ceiling. Except as provided in this section, no court, Federal, State, or Territorial, shall have power to consider such validity, or to stay, restrain, enjoin, or set aside, in whole or in part, any such provision of this Act, or any provision of any such regulation or order.

OBTAINING INFORMATION

SEC. 211. (a) The Administrator may make such studies and investigations, and obtain or require the furnishing of such information under oath or affirmation or otherwise, as he deems necessary or proper to assist him in prescribing any regulation or order under this Act, and in the administration and enforcement of this Act, and regulations and orders thereunder. For such purposes the Administrator may administer oaths and affirmations, may require by sub

pena or otherwise the attendance and testimony of witnesses and the production of documents at any designated place, may require persons to permit the inspection and copying of documents, and the inspection of inventories, and may, by regulation or order, require the making and keping of records and other documents and the making of reports. No person shall be excused from complying with any requirement under this section because of his privilege against self-incrimination, but the immunity provisions of the Compulsory Testimony Act of February 11, 1893 (U. S. C., 1934 edition, title 49, sec. 46), shall apply with respect to any individual who specifically claims such privilege.

(b) The Administrator shall not publish or disclose any information obtained under this Act that he deems confidential unless he determines that the withholding thereof is contrary to the interest of the national defense and security.

REGULATIONS AND ORDERS

SEC. 212. The Administrator may, from time to time, issue such regulations and orders as he may deem necessary or proper in order to carry out the purposes and provisions of this Act, and to prevent the circumvention or evasion thereof. Any regulation or order issued under this Act may be amended or rescinded by the Administrator whenever in his opinion such action is necessary or proper in order to carry out the provisions of this Act or to prevent the circumvention or evasion thereof.

ENFORCEMENT

SEC. 213. (a) Whenever in the judgment of the Administrator any person has engaged or is about to engage in any acts or practices which constitute or will constitute a violation of this Act, or any regulation, order, or requirement thereunder, he may make application to the appropriate court for an order enjoining such acts or practices, or for an order enforcing compliance with this Act or such regulation, order, or requirement, and upon a proper showing a permanent or temporary injunction, restraining order, or other order shall be granted without bond. In cases of actual controversy, a like application may be made by any interested person, and upon a proper showing a like order or decree shall be granted.

(b) Any person who willfully violates any provision of this Act or any regulation, order, or requirement thereunder, and any person who willfully falsifies in any material respect a document or report required to be kept or filed thereunder, shall, upon conviction thereof, be fined not more than $5,000, or imprisoned for not more than one year, or both. Whenever the Administrator has reason to believe that any person is liable to punishment under this subsection, he may certify the facts to the Attorney General, who may, in his discretion, cause appropriate proceedings to be brought.

(c) The district courts shall have jurisdiction of violations of this Act and and Territorial courts, of all civil proceedings to enforce any liability or duty of regulations, orders, or requirements thereunder, and concurrently with State created by, or to enjoin any violation of, this Act or any regulation, order, or requirement thereunder. Such civil proceedings and any criminal proceedings may be brought in any district in which any act or transaction constituting the violation occurred. Any such civil proceedings may also be brought in the district in which the defendant resides or transacts business, and process in such cases may be served in any district wherein the defendant resides or transacts business or wherever the defendant may be found. No costs shall be assessed against the United States Government in any proceeding under this Act.

(d) No person shall be held liable for damages or penalties in any Federal, State, or Territorial court, on any grounds for or in respect of anything done or omitted to be done in good faith pursuant to any provision in this Act or any regulaiton, order, or requirement thereunder, notwithstanding that subsequently such provision, regulaiton, order, or requirement may be modified, rescinded, or determined to be invalid. The Administrator may intervene in any suit or action wherein a party relies for ground of relief or defense upon this Act or any regulation, order, or requirement thereunder.

TITLE III-APPROPRIATIONS, SEPARABILITY, EFFECTIVE DATE, AND TERMINATION

DATE

APPROPRIATIONS AUTHORIZED

SEC. 301. There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act

SEPARABLITY

SEC. 302. If any provision of this Act or the application thereof to any person or circumstances is held invalid, the remainder of the Act and the application of such provision to other persons and circumstances shall not be affected thereby.

EFFECTIVE DATE

SEC. 303. This Act shall become effective on day following the day on which it is enacted, except that title III shall be effective with respect to all defense contracts completed within taxable years beginning after December 31, 1940.

TERMINATION DATE

SEC. 304. This Act shall cease to be in effect after June 30, 1943.

Senator BROWN. Did you have something else to present?

Representative GORE. The principal arguments in the House against the bill were that it was unworkable, that the people were unprepared for it. But I will say we were prepared a week ago for whatever may happen.

Senator TAFT. There has been a good deal of objection on the part of the cotton people to freezing prices.

Representative GORE. There are objections from almost everybody, I realize, but we now have to forget a lot of objections and try to win this war.

Senator TAFT. You said they were prepared to accept it, but I think they are not.

Representative GORE. The special groups will probably never be prepared if we try to make a parity, one against the other. We must make it straight across the board.

Senator BANKHEAD. Senator Taft, why didn't you include wheat with cotton?

Senator TAFT. I only mentioned cotton because the commissioner of agriculture of Georgia was just heard by us.

Senator BANKHEAD. Oh, but I think you were not putting it on his statement but on all Southern products.

Senator TAFT. Well, he made a statement here just a few minutes ago.

Senator BANKHEAD. People engaged in agriculture have the same viewpoint, whether wheat or cotton.

Senator TAFT. I was only using cotton as an illustration at the moment. I did not mean to say cotton is different from any other product. I quite agree with you that wheat and everything else has taken the same position.

Senator BANKHEAD. I am glad to hear you say that.

(Thereupon Representative Gore left the committee table.)

Senator BROWN. We will now hear Mr. C. Donald Dallas, representing the national defense committee of the National Association of Manufacturers.