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(b) When any surplus property is reported to it under subsection (b) of section 7, the disposal agency shall have responsibility and authority for the disposition of such property, and for the care and handling of such property pending its disposition. Where any disposal agency is not prepared, at the time of its designation under this Act, to undertake the care and handling of such surplus property, the Administrator may postpone the responsibility of the agency to assume its duty for care and handling for such period as he deems necessary to permit its preparation therefor, but the owning agency shall be reimbursed, pursuant to subsection (b) of section 18, for its expenses for the care and handling of such surplus property during such period.

(c) The Administrator, by regulations, shall prescribe policies, standards, methods and procedures to govern the exercise by any disposal agency of its authority under subsection (b) of this section.

TRANSFERS BETWEEN AGENCIES

SEC. 10. (a) The Administrator shall establish procedures to facilitate the acquisition by each Government agency of surplus property of other Government agencies for the performance of its functions. Each Government agency shall make the fullest practicable use of surplus property in order to avoid unnecessary commercial purchases.

(b) The disposal agency responsible for any such property shall transfer it to the agency acquiring it at the fair value of the property as fixed by the disposal agency, under regulations of the Administrator, unless transfer without reimbursement or transfer of funds is otherwise authorized by law.

METHODS OF DISPOSITION

SEC. 11. (a) Wherever any Government agency is authorized to dispose of property under this Act, then, notwithstanding the provisions of any other law but subject to the provisions of this Act, the agency may dispose of such property by sale, exchange, lease, transfer, or other disposition, for cash, credit, other property, or otherwise, with or without warranty, and upon such other terms and conditions as the agency deems proper.

(b) Whenever the Government agency authorized to dispose of any property finds that it has no commercial value or that the cost of its handling and sale would exceed the estimated proceeds, the agency may donate such property to an agency or institution supported by the Federal Government or any State or local Government, or to any nonprofit educational or charitable organization, or if that is not feasible, shall destroy or otherwise dispose of such property.

(c) The Administrator, by regulations, shall prescribe such policies governing prices and other terms and conditions of dispositions under the authority of subsections (a) and (b) of this section, as he deems necessary to effectuate the objectives and policies of this Act.

(d) A deed, bill of sale, lease, or other instrument executed by or on behalf of any Government agency purporting to transfer title or any other interest in property under this Act, shall be conclusive evidence of compliance with the provisions of this Act insofar as title or other interest of any bona fide purchasers is concerned.

POLICIES GOVERNING DISPOSITION

SEC. 12. In formulating regulations to govern the care and handling and disposition of surplus property under this Act, the Administrator shall be guided by the objectives stated in section 1 of this Act, and shall give effect to the following policies to the extent feasible:

(a) To facilitate transfers of surplus property of one Government agency to other Government agencies for their use.

(b) To afford public, governmental, educational, charitable, and eleemosynary institutions and cooperative organizations an opportunity to fulfill their legitimate needs for surplus property.

(c) To afford returning veterans an opportunity to establish themselves as proprietors of agricultural and business enterprises.

(d) To afford smaller business concerns and agricultural enterprises generally an opportunity to acquire surplus property on equal terms with larger competitors, and to discourage sales to speculators, by assuring reasonable notice of such dispositions, by disposing of such property in appropriate quantities, by using

commercial channels of distribution to the maximum extent consistent with efficient and economic distribution, by collaborating with Smaller War Plants Corporation, or by other appropriate means.

(e) To afford former owners of surplus real property acquired by the Government by the exercise of its war powers an opportunity to reacquire such property. (f) To encourage mutually beneficial trade relations with foreign nations and to develop foreign markets.

(g) To dispose of surplus property as promptly as feasible without fostering monopoly or unduly disturbing the economy.

(h) To realize the highest obtainable return for the Government from such surplus property, consistent with the policies and objectives set forth in this Act.

DISPOSITION OF PLANTS

SEC. 13. (a) The Administrator shall exercise supervision over dispositions of surplus Government-owned plants to insure that such dispositions do not foster monopolies, undue concentration of industry or commerce, or restraint of competition.

(b) Whenever the Administrator considers that any proposed disposition of a Government-owned plant or group of plants, except pursuant to an option therefor, may violate the antitrust laws, he shall notify the Attorney General of the terms of the proposed disposition before it is made. If the Attorney General reports in writing that, in his opinion, the proposed disposition will violate the antitrust laws, the disposal agency shall not carry it out. If the Attorney General fails to make such a report within thirty days after the receipt of the notice of the proposed disposition or within such additional period, not exceeding thirty days, as he may specifically request, the disposal agency may proceed with the disposition. The failure of the Attorney General to make a report hereunder shall not bar any prosecution for violation of the antitrust laws.

(c) As used in this section the term "antitrust laws" include the Act of July 2, 1890 (ch. 647, 26 Stat. 209), as amended, the Act of October 15, 1914 (ch. 323, 38 Stat. 730), as amended, and the Federal Trade Commission Act.

SEC. 14. (a) No Government agency shall dispose of any surplus Governmentowned plant for the production of synthetic rubber, or aluminum, which originally cost the Government $5,000,000 or more, except in accordance with this section or pursuant to an option therefor.

(b) The Administrator may authorize any disposal agency to lease any such surplus plant for a term of not more than five years subject to the provisions of section 13.

(c) The Administrator shall prepare and submit to Congress a report setting forth a proposed plan of disposal for each class of such property. After six months from the submission of his report, unless the Congress provides otherwise by law, the Administrator may authorize the appropriate disposal agencies to dispose of such property in accordance with the plan proposed in the report to Congress.

(d) The Administrator may authorize any disposal agency to dispose of any materials or equipment related to any surplus plant covered by subsection (a) of this section, if such materials and equipment are not necessary for the operation of the plant in the manner for which it is designed.

(e) This section shall not apply to any Government-owned equipment, structure, or other property, operated as an integral part of a privately owned plant and not capable of economic operation as a separate and independent unit.

SEC. 15. No option of any person to purchase or otherwise acquire Governmentowned property shall be honored except in strict conformity with the price and other terms of such option. If any such option is not exercised, the property shall be disposed of in accordance with the provisions of this Act.

REGULATIONS

SEC. 16. The Administrator shall prescribe regulations to effectuate the provisions of this Act. Each Government agency shall carry out such regulations of the Administrator expeditiously, and shall issue such regulations with respect to its operations and procedures as may be necessary for that purpose. Any Government agency may issue such further regulations not inconsistent with the regulations of the Administrator as it deems necessary and desirable to carry out the provisions of this Act. The regulations prescribed under this Act shall be published in the Federal Register.

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GENERAL PROVISIONS

SEC. 17. (a) Each Government agency shall submit to the Administrator (1) such information and reports with respect to surplus property in its control, in such form and at such times, as the Administrator may direct, and (2) information and reports with respect to other property in its control, to such extent, and in such form as the agency deems consistent with national security. (b) Any Government agency may execute such documents for the transfer of title or other interest in property or take such other action as it deems necessary or proper to transfer or dispose of surplus property or otherwise to carry out the provisions of this Act, and shall do so to the extent required by the regulations of the Administrator.

(c) Where any property is disposed of in accordance with this Act and any regulations prescribed under this Act, no officer or employee of the Government shall (1) be liable with respect to such disposition except for his own fraud or (2) be accountable for the collection of any purchase price which is determined to be uncollectible by the agency responsible therefor.

(d) Any interested Government agency may take such action for the care and handling of property subject to disposition under this Act, and for completion of any semifabricated property, as it deems necessary or desirable to effectuate the objectives and policies of this Act.

(e) Each disposal agency shall maintain in each of its disposal offices such records of its inventories of surplus property and of each disposal transaction negotiated by that office as the Administrator may prescribe. The information in such records shall be available at all reasonable times for public inspection. (f) Nothing in this Act shall be deemed to impair or modify any contract or any term or provision of any contract without the consent of the contractor, if the contract or the term or provision thereof is otherwise valid.

DISPOSITION OF PROCEEDS

SEC. 18. (a) All proceeds from any transfer or disposition of property under this Act shall be deposited and covered into the Treasury as miscellaneous receipts, except as provided in subsections (b), (c), (d), and (e) of this section.

(b) From the proceeds of such transfers or dispositions, the agency may deduct all expenses incurred for the care and handling, completion, and transfers or dispositions of such property under this Act, and may reimburse the fund or appropriation bearing such expenses, or the corresponding fund or appropriation currently available at the time of reimbursement.

(c) Where the property transferred or disposed of was acquired by the use of funds either not appropriated from the general fund of the Treasury or appropriated from the general fund of the Treasury but by law reimbursable from assessment, tax, or other revenue or receipts, then upon the request of the interested agency, the proceeds of the disposition or transfer remaining after any deductions under subsection (b) of this section shall be credited to the reimbursable fund or appropriation or paid to the owning agency.

(d) To the extent authorized by the Administrator, any Government agency disposing of property under this Act (1) may deposit, in a special account with the Treasurer of the United States, such amount of the proceeds of such dispositions as it deems necessary to permit appropriate refunds to purchasers when any disposition is rescinded or does not become final, or payments for breach of any warranty, and (2) may withdraw therefrom amounts so to be refunded or paid, without regard to the origin of the funds withdrawn.

(e) Where a contract or subcontract authorizes the proceeds of any sale of property in the custody of the contractor or subcontractor to be credited to the price or cost of the work covered by such contract or subcontract, the proceeds of any such sale shall be credited in accordance with the contract or subcontract and shall not be subject to subsection (a) of this section.

USE OF APPROPRIATED FUNDS

SEC. 19. (a) Any Government agency is authorized to use for the disposition of property under this Act and for its completion, care, and handling, pending such disposition, any funds heretofore or hereafter appropriated, allocated, or available to it for such purposes or for the purpose of production or procurement of such property.

(b) Any Government agency is authorized to use for the acquisition of any surplus property under this Act any funds heretofore or hereafter appropriated, allocated, or available to it for the acquisition of property of the same kind.

(c) There are authorized to be appropriated such sums as may be necessary or appropriate for administering the provisions of this Act.

DELEGATION OF AUTHORITY

SEC. 20. (a) The Administrator may delegate any authority and discretion conferred upon him by this Act to any deputy Administrator, and may delegate such authority and discretion, upon such terms and conditions as he may prescribe, to the head of any Government agency to the extent necessary to the handling and solution of problems peculiar to that agency.

(b) The head of any Government agency may delegate, and authorize successive redelegations of, any authority and discretion conferred upon him or his agency by or pursuant to this Act to any officer, agent, or employee of such agency or, with the approval of the Administrator, to any other Government agency.

(c) Any two or more Government agencies may exercise jointly any authority and discretion conferred upon each of them individually by or pursuant to this Act.

SEC. 21. (In preparation.)

PENALTIES

APPLICABILITY

SEC. 22. All policies and procedures relating to surplus property prescribed by the Surplus War Property Administration, created by Executive Order No. 9425, dated February 19, 1944, or any other Government agency, in effect upon the effective date of this Act, and not inconsistent with this Act, shall remain in full force and effect unless and until superseded by regulations of the Administrator or of the agency in accordance with this Act.

SEC. 23. (a) Nothing in this Act shall limit or affect the authority of commanders in active theaters of military operations to dispose of property in their control.

(b) The provisions of this Act shall be applicable to dispositions of property within the United States and elsewhere, but the Administrator may exempt from some or all of the provisions hereof, dispositions of property located outside of the continental United States or in Alaska, whenever he deems that such provisions would obstruct the efficient and economic disposition of such property in accordance with the objectives of this Act.

SEC. 24. (a) The authority conferred by this Act is in addition to any authority conferred by any other law and shall not be subject to the provisions of any law inconsistent herewith. This Act shall not impair or affect any authority for the disposition of property under any other law, except that the Administrator may prescribe regulations to govern any disposition of surplus property under any such authority to the same extent as if the disposition were made under this Act, whenever he deems such action necessary to effectuate the objectives and policies of this Act.

(b) Nothing in this Act shall impair or affect the provisions of the Emergency Price Control Act of 1942, as amended, or the Act of October 2, 1942 (ch. 578, 56 Stat. 765), as amended, or of Section 301 of the Second War Powers Act, 1942, or of the Act of March 11, 1941 (55 Stat. 31), as amended, or Acts supplemental thereto, or of any law regulating the exportation of property from the United States.

EFFECTIVE DATE; EXPIRATION

SEC. 25. This Act shall become effective from the date of its enactment. Unless extended by law, this Act shall expire at the end of three years following the date of the cessation of hostilities in the present war, as proclaimed by the President or by concurrent resolution of the two Houses of Congress.

SEPARABILITY OF PROVISIONS

SEC. 26. If any provision of this Act, or the application of such provision to any person or circumstance, is held invalid., the remainder of this Act or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

SHORT TITLE

SEC. 27. This Act may be cited as the "Surplus Property Act of 1944".

(B) GENERAL RECOMMENDATIONS SUBMITTED IN REPLY TO REQUESTS FROM SENATOR MURRAY

OFFICE OF PRICE ADMINISTRATION,
Washington, D. C., May 16, 1944.

The Honorable JAMES E. MURRAY,

United States Senate.

DEAR SENATOR MURRAY: I am pleased to have the opportunity offered by your letter of May 6, 1944, to comment on the surplus-goods disposal program. Questions of price control are involved as are other long-run considerations of equal importance.

There are four major objectives of public policy which I would stress:

1. The maintenance of maximum price control on surplus goods so long as there is a serious inflationary threat.

2. The protection of the competitive character of the American economy.

3. The safeguarding of employment opportunities so that there may be a minimum of unemployment after the termination of hostilities.

4. The protection of the future national security insofar as it has a physical basis in critical materials of war.

If these be taken as proper objectives of national policy guiding surplus-goods disposal, it would seem desirable for the Congress to consider the following issues and determine a general policy concerning them.

1. What price-control safeguards should be established, and by whom should they be administered? There is grave danger that uncontrolled competitive bidding will produce highly inflated prices for certain surplus goods, supply of which is critically short.

I recommend that the Congress recognize that maximum prices established by the Office of Price Administration should control the sale of surplus commodities where applicable, as is now the case.

In this connection, I would like to stress the desirability of close liaison between the Office of Price Administration and the disposal agencies in order to insure that possible conflicts between maximum price controls and disposal policies be eliminated. Naturally, Office of Price Administration desires to cooperate with other Government agencies in making available whatever price and market information it may have of value to them.

2. In the interest of maintaining the competitive nature of the American economy, the question arises as to whether the Congress should provide preferential treatment for small or independent producers in the disposal of Government properties. In some cases, such as war plants, liberal terms of payment by such buyers would probably be justified as contributing to this end. In the case of commodities generally it is highly important that every reasonable effort be made to insure that smaller firms are informed of the availability of goods and be given at least equal opportunity for their purchase. This would mean, for example, not only publicity and reliance on appropriate methods of sale, but also making goods available in sufficiently small quantities to permit their purchase by such buyers.

3. In respect to the problem of employment, I would suggest that the Congress consider the sale of surplus stocks as a part of a general program of economic stabilization. It should be recognized that the sale of surplus consumer goods in some circumstances is a highly effective means of combating inflation. At other times, especially if economic conditions are adverse, sales of consumer goods may, in some cases, be essentially deflationary, in part because there is little or no distribution of income by means of wage, interest, and profits payments paralleling the sale of surplus goods at the time of their disposal. Even in such cases, however, it may be in the public interest to use surplus consumer goods to aid in relief programs either at home or abroad. It should also be recognized, of course, that in some circumstances the sale of industrial materials and capital equipment at favorable prices during a depression period might have stimulating effects.

I know that both the Congress and the disposal agencies are concerned over the disruption which would follow a "dumping" policy. It has been suggested

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