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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
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:
DEPARTMENT OF JUSTICE,
Washington, D. C., January 31, 1935.
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 appoii tel 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
not possible to sell it for two-thirds of its appraised value. The best tentative offer is about $23,000,000. It is important that the provisions of the act of 1934 be so clarified as to leave no doubt that such property may be sold at public sale, without restriction.
2. The bill permits a single sale of different parcels of property located in several districts.
3. The bill makes provisions which will greatly reduce the cost of advertising by making it possible to avoid the advertisement of long descriptions and, in cases where the property is situated in several districts, to avoid the necessity of advertising in all such districts.
I shall be glad if you will introduce the enclosed bill and lend your active support to its early enactment. Sincerely yours,
HOMER CUMMINGS, Attorney General. In compliance with clause 2a of rule XIII, there follows below draft of proposed bill (existing law printed in roman, with matter proposed to be omitted in black brackets, and new matter in italics):
All real estate or any interest in land sold under any order or decree of any United States court shall be sold at public sale at the courthouse of the county, parish, or city in which the property, or the greater part thereof, is located, or upon the premises or some parcel thereof located therein, as the court rendering such order or decree of sale may direct [: Provided, however, That the court may, upon petition therefor and a hearing thereon after such notice to parties in interest as said court shall direct, if it find that the best interests of said estate will be conserved thereby, order and decree the sale of such real estate or interest in land at private sale: Provided further, That the court shall appoint three disinterested persons to appraise said property, and said sale shall not be confirmed for less than two-thirds of the appraised value.] : Provided, however, That if said property shall be situated in more than one county, State, judicial district of the United States, of judicial circuit of the United States, whether in one or more parcels, said property shall be sold at public sale at the courthouse of the county, parish, or city in which the greater part thereof is located or upon the premises or some parcel thereof as the court Tendering such order or decree of sale may direct: And provided further, That if at the time said property is offered for sale it is in the possession of a receiver or receivers, or ancillary receiver or ancillary receivers, appointed by one or more district courts of the United States, said property wherever situated shall be sold at public sale in the district of primary jurisdiction at the courthouse of the county, parish, or city situated therein in which the greater part of said property in said district is located or on the premises or some parcel thereof located in such county, parish, or city therein as the court having primary jurisdiction by such order or decree of sale may direct, unless said court shall order the sale of the properties or one or more parcels thereof in one of more ancillary districts. The United States court having primary jurisdiction shall be deemed to be the court first appointing any such receiver.
“ The court, after a hearing, upon such notice to parties in interest as said court may direct, may order and decree the sale of such real estate or interest in land or any part thereof at private sale for cash or other considerations and upon such terms and conditions as the court directing the sale may approve, if it finds that the best interests of the estate will be conserved thereby: Provided, That before confirmation of any private sale, the court shall appoint three disinterested persons to appraise said properly or, if the court deems advisable, different groups of three appraisers each to appraise properties of different classes or situate in different localities, and no private sale shall be confirmed at a price less than two-thirds of the appraised value. The provisions of this section shall apply to sales and proceedings now pending in the courts of the United States as well as those commenced hereafter. The provisions of this section shall not apply to sales and proceedings under the Bankruptcy Act.
“Sec. 2. All personal property sold under any order or decree of any court of the United States shall be sold as provided in section 1 of this Act, unless in the opinion of the court rendering such order or decree, it would be best to sell it in some other
The provisions of this section shall apply to sales and proceedings now pending in the courts of the United States as well as those commenced hereafter. The prorisions of this section shall not apply to sales and proceedings under the Bankruptcy Ad.
“Sec. 3. No sale of real estate ordered pursuant to the provisions of this Act by any order, judgment, or decree of an United States court, other than a private sale, shail be had without previous publication of notices of such proposed sale being ordered and had once a week for at least four weeks prior to such sale in at least one newspaper
printed, regularly issued, and having a general circulation in the county, State, judicial district of the United States, or judicial circuit of the United States where the real estate proposed to be sold is situated, if such there be. If said property shall be situated in more than one county, State, judicial district of the United States, or judicial circuit of the United States, such notice shall be published in one or more of the counties, Slates, judicial districts of the United States, or judicial circuits of ihe United States where said property is situated, as the court may direct. Said notice shall be substantially in such form and contain such description of the property by reference or otherwise as the court ordering the sale shall approve. The court may, in its discretion, direct that the publication of the notice of sale herein provided for be made in such other news papers as may seem proper. The provisions of this section shall apply to sales and proceedings now pending in the courts of the United States as well as those commenced hereafter in said courts. The provisions of this section shall not apply to sales and proceedings under the Bankruptcy Act.”
REPEALING CERTAIN PROVISIONS RELATING TO PUB
LICITY OF CERTAIN STATEMENTS OF INCOME
APRIL 10, 1935.-Ordered to be printed
Mr. DOUGHTON, from the Committee on Ways and Means, submitted
[To accompany H. R. 6359)
The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 6359) to repeal certain provisions relating to publicity of certain statements of income, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:
That the House recede from its disagreement to the amendment of the Senate to the text of the bill, and agree to the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the Senate amendment insert the following: amended to read as follows:
“(6) (1) All income returns filed under this title for any taxable year beginning after December 31, 1934 (or copies thereof, if so prescribed by regulations made under this subsection), shall be open to inspection by any official, body, or commission, lawfully charged with the administration of any State tax law, if the inspection is for the purpose of such administration or for the purpose of obtaining information to be furnished to local taring authorities as provided in paragraph (2). The inspection shall be permitted only upon written request of the governor of such State, designating the representative of such official, body, or commission to make the inspection on behalf of such official, body, or commission. The inspection shall be made in such manner, and at such times and places, as shall be prescribed by regulations made by the Commissioner with the approval of the Secretary.
* (2) Any information thus secured by any official, body, or commission of any State may be used only for the administration of the tax laws of such State, except that upon written request of the governor of such State any such information may be furnished to any official, body, or
commission of any political subdivision of such State, lawfully charged with the administration of the tax laws of such political subdivision, but may be furnished only for the purpose of, and may be used only for, the administration of such tax laws. Any officer, employee, or agent of any State or political subdivision, who divulges (except as authorized in this subsection, or when called upon to testify in any judicial or administrative proceeding to which the State or political subdivision, or such State or local official, body, or commission, as such, is a party) any information acquired by him through an inspection permitted him or another under this subsection shall be quilty of a misdemeanor and shall upon conviction be punished by a fine of not more than $1000, or by imprisonment for not more than one year, or both.”
And the Senate agree to the same.
That the House recede from its disagreement to the amendment of the Senate to the title of the bill, and agree to the same.
R. L. DoughTON,
JESSE H. METCALF,