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and not be sold for less than two-thirds of its appraised value applies to public as well as private sales. It was not the intent of Congress that this requirement should apply to public sale, and the first section of H. R. 5455 clarifies the law on this point. A second purpose which this bill accomplishes in section 1 is to permit a single sale of separate parcels of property located in different districts. By committee amendment no. 3 to section 1 a requirement is made that at least 10 days before confirmation of a private sale the terms thereof must be published in such newspaper or newspapers of general circulation as the court ordering the sale shall direct, and if a bona fide offer is made which will guarantee as much as 10 percent more than the offered price specified in the proposed private sale then the private sale shall not be confirmed.

Section 2 of the bill requires that the same procedure which is prescribed for the sale of real property be followed in the sale of personal property, unless in the opinion of the court rendering the order or decree it would be best to sell it in some other manner.

The third and final section of the bill lays down rules for the publication in newspapers of notices of proposed sales. The cost of advertising is reduced by making it possible to avoid the publication of long descriptions, and by making it possible in cases where the property is located in more than one county, State, or district, to avoid duplicate advertising in each of such counties. States, or districts.

Notice of a proposed sale must be published once a week for at least 4 weeks prior to the sale in at least one newspaper, printed, regularly issued, and having a general circulation in the county, State, district, or circuit where the property proposed to be sold is situated. The notice must be substantially in a form approved by the court ordering the sale. The court may direct and require the publication of the notice in such additional newspapers as he may in his discretion think proper.

The Attorney General has requested the enactment of this proposed legislation for reasons given in the following communication to the Chairman of the Committee on the Judiciary, to which particular attention is invited:



Washington, D. C., January 31, 1935.

Chairman Committee on the Judiciary,

House of Representatives, Washington, D. C.

MY DEAR MR. CHAIRMAN: I enclose herewith a draft of a bill to amend the existing law regulating the manner in which property shall be sold under orders and decrees of United States courts.

The proposed legislation is not only of general importance, but it is also essential to the expeditious and satisfactory conduct of the proposed sale of the property of the Pan American Petroleum Co. and the Richfield Oil Co. of California, valued at many millions of dollars, in which the Government is vitally interested to the extent of several millions, and which is now in the hands of receivers appointed by the United States District Court.

The enclosed bill is intended to accomplish theree principal purposes:

1. It clarifies the provisions of the act of June 19, 1934 (ch. 662, 48 Stat. 1119; sec. 847, title 28, U. S. C.), which permits private sales upon the order of the court; and which further provides for an appraisal and prohibits confirmation of any sale for less than two-thirds of the appraised value. Uncertainty has arisen as to whether the requirement of an appraisal and the ban against a sale for less than two-thirds of the appraised value apply to public as well as to private sales. The appraised value of the Pan American property is in the neighborhood of $60,000,000 and, as the market for such property is extremely limited, it is

If enacted into law this bill will result in increased work in the offices of the collectors of customs and, in the principal ports, may require the employment of one or more additional men. It has been the experience of this Department that, with rare exceptions, every mortgagee secures a preferred mortgage as his lien rather than a simple mortgage if the vessel can qualify for the preferred mortgage. It is extremely likely that mortgagees of smaller boats will avail themselves of this privilege to the same extent as the mortgagees of vessels of 200 gross tons or upward. The expense incident to the performance of these additional duties will be largely offset by the fees collected for the recording of the various documents required to be filed under the bill.

Very truly yours,

Secretary of the Treasury.

The opinion of the Chairman of the Reconstruction Finance Corporation was requested who advised as follows:


Washington, D. C., March 12, 1935.

Chairman of the Merchant Marine and Fisheries Committee,

House of Representatives, Washington, D. C.

DEAR MR. CHAIRMAN: It is our understanding that your committee would have before it on Thursday March 14, for consideration, H. R. 4982, a bill entitled "to amend the Ship Mortgage Act of 1920."

In making loans to the fishing industry, it is not possible to secure a satisfactory mortgage on vessels of less than 200 tons. This proposed legislation would permit of preferred mortgages on any vessel of 20 tons or more, which would enable fishermen to offer such vessels as security for a loan from this Corporation. Yours truly,

JESSE JONES, Chairman.

Hearings were held on H. R. 4982 and it developed that it was feared that extension of the Ship Mortgage Act, 1920, to towboats, barges, scows, lighters, car floats, canal boats, or tank vessels of less than 200 tons might interfere with and delay harbor operations because the liens for towage, repair, and other purposes existing under the admiralty law would be subordinated to the mortgage given a preferred status under the Ship Mortgage Act.

Accordingly, the old law was not changed as to towboats, barges, scows, lighters, car floats, canal boats, or tank vessels of less than 200 gross tons and a new bill (H. R. 7205) was introduced to effectuate that purpose.

Under the Ship Mortgage Act, 1920, the mortgage therein provided is given priority over all liens except those defined in that act as preferred maritime liens. A preferred maritime lien is defined in subsection M, clause (a) of the Ship Mortgage Act, 1920 (sec. 30, Merchant Marine Act, 1920), and reads as follows:

When used hereinafter in this section, the term "preferred maritime lien" means (1) a lien arising prior in time to the recording and endorsement of a preferred mortgage in accordance with the provisions of this section; or (2) a lien for damages arising out of tort, for wages of a stevedore when employed directly by the owner, operator, master, ship's husband, or agent of the vessel, for wages of the crew of the vessel, for general average, and for salvage, including contract salvage.

Mr. Albert T. Gould, counsel for the Reconstruction Finance Corporation, testified that he had been retained in behalf of the Reconstruction Finance Corporation to advise how the Corporation could carry out the authority granted to it by Congress to aid the fishing industry. He said that one of the conditions of loans by the Corporation is that there should be reasonable assurance for the loans that the Corporation

made to the fishing industry, and that the principal security for such loans would have to be the vessels, but that as most of these vessels were under 200 gross tons, the vessel would not be reasonable security without an amendment such as that provided by the proposed legislation.

The same difficulty exists in procuring loans from private sources. The fishing industry is in desperate straits, the sources of credit have been exhausted during the distressing years through which the Nation has passed, competition with subsidized foreign fisheries has kept prices in most cases below the cost of production, unusual and violent storms have destroyed vessels and other capital, and many failures have resulted.

The Congress sought to alleviate these conditions when it authorized the Corporation to extend credit to the fishing industry, but without the passage of the proposed bill the relief authorized cannot be made effective.

The committee earnestly recommends the passage of this bill as a necessary relief measure.


In compliance with paragraph 2a of rule XIII of the Rules of the House of Representatives, section 30, subsection D, subdivision (a) of the act of June 5, 1920, known as the "Ship Mortgage Act, 1920", as amended by this bill, is herewith set forth, the matter enclosed in black brackets representing language to be stricken out and the new matter proposed by this bill being printed in italics:

SUBSECTION D. (a) A valid mortgage which, at the time it is made includes the whole of any vessel of the United States (other than a towboat, barge, scow, lighter, carfloat, canal boat, or tank vessel, of less than two hundred gross tons) of [200 gross tons and upwards], shall in addition have, in respect to such vessel and as of the date of the compliance with all the provisions of this subdivision, the preferred status given by the provisions of subsection M, if

(1) The mortgage is endorsed upon the vessel's documents in accordance with the provisions of this section;

(2) The mortgage is recorded as provided in subsection C, together with the time and date when the mortgage is so endorsed;

(3) An affidavit is filed with the record of such mortgage to the effect that the mortgage is made in good faith and without any design to hinder, delay, or defraud any existing or future creditor of the mortgagor or any lienor of the mortgaged vessel;

(4) The mortgage does not stipulate that the mortgagee waives the preferred status thereof; and

(5) The mortgagee is a citizen of the United States.



APRIL 8, 1935.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. AYERS, from the Committee on Indian Affairs, submitted the



[To accompany H. R. 2756]

The Committee on Indian Affairs, to whom was referred the bill (H. R. 2756) authorizing the Tlingit and Haida Indians of Alaska to bring suit in the United States Court of Claims, and conferring jurisdiction upon said court to hear, examine, adjudicate, and enter judgment upon any and all claims which said Indians may have, or claim to have, against the United States, and for other purposes, having considered the same, report thereon with a recommendation that it do pass with the following amendments:

Strike the word "were" in line 6, page 1, and insert in lieu thereof the word "are". Strike the words "On March 30, 1867" in line 7, page 1.

On page 2, line 2, after the word "meridian" change the comma to a period and strike out the remainder of the section to the end of line 4.

On page 2, line 8, insert the word "or" after the word "tribal"; strike out the comma after the word "community" and strike out the words "or individual".

On page 2, line 11, insert the word "or" after the word "tribal"; strike out the comma after "community".

On page 2, line 12, strike out the words "or individual."

On page 2, line 22, strike out the word "of" after the word "Court". On page 2, line 23, strike out the word "claims" before the words "to hear". On page 2, line 23, strike out the words "the evidence in support of".

On page 2, line 24, strike out the semicolon after the word "thereon" and strike out the words "to dismiss said claim". Line 25, page 2 and line 1, page 3, should be stricken out, and in line 2, page 3, strike out the words "against the United States".

Page 3, lines 12 and 14 after the word "petition" insert the words "or petitions".

Page 3, line 13, strike out the word "briefly".

Page 3, line 17, strike the word "five" and insert in lieu thereof the word "seven".

Page 3, line 24, strike out the word "persons" and insert the word "parties".

Page 4, lines 7, 8, and 9, strike out the words "and a copy served upon the Attorney General of the United States with a filing or service of the original petition or petitions".

In section 4, page 4, line 22, strike out the words "either individually or".

In section 5, page 5, line 16, after the word "documents", insert "as are in the files", and in lines 16, 17, and 18, strike out the words "and furnish such certified copies thereof as may be necessary in the premises free of cost".

Section 6, page 5, strike out lines 19 and 20 and the words "the issues are formed by the pleadings" in line 21.

Page 5, line 22, after the word "appoint", insert the words "at the proper time",

Page 5, line 24, before the word "who", insert the words "and acts supplemental thereto,

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Page 6, lines 11 and 12, strike out "no cost shall be assessed against the said Alaska Indians in said suit or suits at any time", and insert the words "said supplemental acts".

Strike all of sections 7 and 8 from pages 6, 7, and 8, and insert in lieu thereof revised sections as follows:

SEC. 7. That Tlingit and Haida Indians of Alaska who are entitled to share in any judgment or appropriation made to pay said claim or claims shall consist of all persons of Tlingit or Haida blood, living in or belonging to any local community of these tribes in the territory described in section 1 of this Act. Each tribal community shall prepare a roll of its tribal membership, which roll shall be submitted to a Tlingit and Haida central council for its approval. The said central council shall prepare a combined roll of all communities and submit it to the Secretary of the Interior for approval. Approval of the roll by the said Secretary of the Interior shall operate as final proof of the right of such Indian communities to share in the benefits of this Act as set forth in section 8.

SEC. 8. The amount of any judgment in favor of said Tlingit and Haida Indians of Alaska, after payment of attorneys' fees, shall be apportioned to the different Tlingit and Haida communities listed in the roll provided for in section 7 in direct proportion to the number of names on each roll, and shall become an asset thereof, and shall be deposited in the Treasury of the United States to the credit of each community, and such funds shall bear interest at the rate of 4 per centum per annum, and shall be expended from time to time upon requisition by the said communities by and with advice and consent of the Secretary of the Interior, and under regulations as he may prescribe for the future economic security and stability of said Indian groups, through the acquisition or creation of productive economic instruments and resources of public benefit to such Indian communities: Provided, however, That the interest on such funds may be used for beneficial purposes such as the relief of distress, emergency relief, and health: Provided, further, That none of the funds above indicated or the interest thereon shall ever be used for per capita payments.

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