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REACTIVATION OF WAR DAMAGE INSURANCE

THURSDAY, DECEMBER 7, 1950

HOUSE OF REPRESENTATIVES,
COMMITTEE ON BANKING AND CURRENCY,

Washington, D. C. The committee met at 10 a. m., Hon. Brent Spence (chairman) presiding.

Present: Messrs. Spence, Brown, Monroney, Rains, Buchanan, Multer, Deane, Mrs. Woodhouse, Messrs. McKinnon, Dollinger, O'Hara, Wolcott, Talle, Cole, Hull, and Nicholson.

The CHAIRMAN. The committee will be in order. We have met this morning to consider the bills providing for the reactivation of the War Damage Corporation.

(The bills referred to are as follows:)

(H. R. 9130, 81st Cong., 2d sess.)

A BILL To create the War Damage Corporation Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “War Damage Corporation Charter Act”.

SEC. 2. There is hereby created a body corporate to be known as the War Damage Corporation (hereinafter referred to as the “Corporation”), which shall be an agency and instrumentality of the United States.

Sec. 3. The Corporation shall have its principal office in the District of Columbia and may establish offices in such other place or places as it may deem appropriate in the conduct of its business.

Sec. 4. (a) The objects and purposes of the Corporation shall be to provide, through insurance, reinsurance, or otherwise, reasonable protection against loss of or damage to property, real and personal, which may result from enemy attack, including any action taken by the military, naval, or Air Forces of the United States in resisting enemy attack.

(b) The Corporation shall establish, from time to time, uniform rates for each type of property with respect to which protection is made available under this Act, and, in order to establish basis for such rates, the Corporation shall estimate the available risk of loss of all property of such type in the United States. Such protection shall be applivable only (1) to such property situated in the United States (including the several States and the District of Columbia), the Canal Zone, the Territories and possessions of the United States, and in such other places as may be determined by the President to be under the domination and control of the United States; (2) to such property in transit between any points located in any of the foregoing; and (3) to all bridges between the United States and Canada and between the United States and Mexico. The Corporation may suspend, restrict, or otherwise limit such protection in any area to the extent that it may determine to be necessary or advisable in considering the loss or control of the United States making it impossible or impracticable to provide such protection in such area.

Sec. 5. The Corporation shall have the following general powers in carrying (2) To adopt, alter, and use a corporate seal, which shall be judicially noticed.

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(3) To adopt, amend, and repeal by laws governing the conduct of its business, and the performance of the powers and duties granted to or imposed upon it by law.

(4) To sue and be sued in its corporate name in any court of competent jurisdiction.

(5) To determine the character of and the necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid, subject to the laws applicable specifically to Government corporations.

(6) To acquire, in any lawful manner, any property-real, personal, or mixed, tangible or intangible-to hold, maintain, use, and operate the same; and to sell, lease, or otherwise dispose of the same, whenever any of the foregoing transactions are deemed necessary or appropriate to the conduct of the activities authorized by this Act, and on such terms as may be prescribed by the Corporation.

(7) To execute all instruments necessary or appropriate in the exercise of any of its functions.

(8) To use the United States mails in the same manner and under the same conditions as the executive departments of the Federal Government.

(9) To settle and adjust claims held by it against other persons or parties and by other persons or parties against the Corporation.

(10) To borrow, hypothecate, and to invest and reinvest its funds.

(11) To appoint such officers, agents, attorneys, and employees as may be necessary for the conduct of the business of the Corporation; and to delegate to them such powers and to prescribe for them such duties as may be deemed appropriate by the Corporation.

(12) To take such actions as may be necessary or appropriate to carry out the powers and duties herein or hereafter specifically granted to or

imposed upon it. Sec. 6. The Corporation, including its franchise, its capital, reserves, surplus,

, and income, shall be exempt from all taxation (which shall, for all purposes, bé deemed to include sales, use, storage, and purchase taxes) now or hereafter imposed by the United States, or any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority, except that any real property (or buildings which are considered by the laws of any State to be personal property for taxation purposes) of the Corporation shall be subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.

Sec. 7. The Corporation shall be managed by a Board of Directors of the Corporation to be appointed by the President and to consist of five Directors. Each Director shall hold office until and including the 31st day of December in the year in which or for which appointed and until his successor shall be duly appointed and qualified.

SEC. 8. (a) The Corporation is authorized to obtain money from the Treasury of the United States, for use in the performance of the powers and duties granted to or imposed upon it by law, not to exceed a total of $1,000,000,000 outstanding at any one time. For this purpose appropriations not to exceed $1,000,000,000 are hereby authorized to be made to a revolving fund in the Treasury. Advances shall be made to the Corporation from the revolving fund when requested by the Corporation.

(b) As the Corporation repays the amounts thus obtained from the Treasury, the repayments shall be made to the revolving fund.

SEC. 9. The term “War Damage Corporation” as used in section 101 of the Government Corporation Control Act shall be held and considered to refer to the Corporation created by this Act.

(H. R. 9312, 81st Cong., 2d sess.)

A BILL To grant succession to the War Damage Corporation Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "War Damage Corporation Act of 1950”.

SEC. 2. Notwithstanding the Government Corporation Control Act or the charter of the War Damage Corporation, the War Damage Corporation (hereinafter referred to as the "Corporation') shall have succession for the objects and purposes set forth in section 3.

The Corporation shall not have succession beyond July 1, 1955, except for purposes of liquidation, unless it is extended beyond such date pursuant to an Act of Congress.

SEC. 3. The Reconstruction Finance Corporation is directed to supply funds to the Corporation, and the amount of notes, bonds, debentures, and other such obligations which the Reconstruction Finance Corporation is authorized to issue and to have outstanding at any one time under existing law is increased by an amount sufficient to carry out the provisions of this section. Such funds shall be supplied only upon the request of the President and the aggregate amount of the funds so supplied shall not exceed $1,000,000,000, exclusive of capital stock previously subscribed. The Reconstruction Finance Corporation is authorized to and shall empower the Corporation to use its funds to provide, through insurance, reinsurance, or otherwise, reasonable protection against loss of or damage to property, real and personal, which may result from enemy attack (including any action taken by the military, naval, or air forces of the United States, or its allies in resisting enemy attack), with such general exceptions as the Corporation, with the approval of the President, may deem advisable. Such protection shall be made available on and after a date to be determined and published by the President upon the payment of such premium or other charge, and subject to such terms and conditions as the Corporation, with the approval of the President, may establish, but, in view of the national interest involved, the Corporation shall from time to time establish uniform rates for each type of property with respect to which such protection is made available, and, in order to establish a basis for such rates, the Corporation shall estimate, from time to time, the average risk of loss on all property of such type in the United States. Such protection shall be applicable only (1) to such property situated in the United States (including the several States and the District of Columbia), the Canal Zone, the Territories and possessions of the United States, and in such other places as may be determined by the President, for the purposes of this Act, to be under the dominion and control of the United States, (2) to such property in transit between any points located in any of the foregoing, and (3) to all bridges and tunnels between the United States and Canada and between the United States and Mexico: Provided, That such protection shall not be applicable after the date determined by the President under this subsection to property in transit upon which any agency of the Government is authorized to provide marine war-risk insurance. The Corporation, with the approval of the President, may suspend, restrict, or otherwise limit such protection in any area to the extent that it may determine to be necessary or advisable in consideration of the loss of control of such area by the United States making it impossible or impracticable to provide such protection in such area. The Corporation, with the approval of the President, may provide such limitations and general exceptions with respect to classes of property protected and other matters.

Sec. 4. The Corporation shall have the following general powers in carrying out the objects and purposes set forth in section 3:

(1) To amend its charter insofar as it is necessary to carry out the objects, purposes, and general powers set forth in sections 3 and 4.

(2) To adopt, alter, and use a corporate seal, which shall be judicially noticed.

(3) To adopt, amend, and repeal bylaws governing the conduct of its business, and the performance of the powers and duties granted to or imposed upon it by law.

(4) To sue and be sued in its corporate name in any court of competent jurisdiction.

(5) To determine the character of and the necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid, subject to the laws applicable specifically to Government corporations.

(6) To acquire, in any lawful manner, any property-real, personal, or mixed, tangible or intangible to hold, maintain, use, and operate the same; and to sell, lease, or otherwise dispose of the same, whenever any of the foregoing transactions are deemed necessary or appropriate to the conduct of the activities authorized by this Act, and on such terms as may be prescribed by the Corporation.

(7) To execute all instruments necessary or appropriate in the exercise of any of its functions.

(8) To use the United States mails in the same manner and under the same conditions as the executive departments of the Federal Government.

(9) To settle and adjust claims held by it against other persons or parties and by other persons or parties against the Corporation.

(10) To borrow, hypothecate, and to invest and reinvest its funds.

(11) To appoint such officers, agents, attorders, and employees as may be necessary for the conduct of the business of the Coroación: and to delegate to them such powers and to prescribe for them sub dies 24 may be deemed appropriate by the Corporation.

(12) To take such actions as may be necessary or appropriate to carry out the powers and duties herein or hereafter speeiica. 5 marted to or imposed upon it.

SEC. 5. The Corporation, including its frarese, its capital, reserves, surplus, and income, shall be exempt from all taxatios web ahall, for all purposes, be deemed to include sales, use, storage, and purebase taxes, now or hereafter imposed by the United States, or any Territory, depesdesey, or possession thereof, or by any State, county, municipality, or loca, tancg anthority, except that any real property (or buildings which are corsidered by the laws of any State to be personal property for taxation purposes of the Corporation shall be subject to State, Territorial, county, municipal, or local taxatios to the same extent according to its value as other real property is tased.

(F. R. 9340, Sist Cong., seas.

A BILL To grant succession to the Wxz Damage Corporation Be it enacted by the Senate and House of Representatites of the United States of America in Congress assembled, That this Act may be cited as the 'War Damage Corporation Act of 1950".

SEC. 2. Notwithstanding the Government Corporation Control Act or the charter of the War Damage Corporation, the War Damage Corporation (hereinafter referred to as the "Corporation"') shall have succession for the objects and purposes set forth in section 3. The Corporation shall not have auccession beyond July 1, 1955, except for purposes of liquidation, unless it is extended beyond such date pursuant to an Act of Congress.

SEC. 3. The Reconstruction Finance Corporation is directed to supply funds to the Corporation, and the amount of notes, bords, debentures, and other such obligations which the Reconstruction Finance Corporation is authorized to issue and to have outstanding at any one time under existing law is increased by an amount sufficient to carry out the provisions of this section. Such funds shall be supplied only upon the request of the President and the aggregate amount of the funds so supplied shall not exceed $1,000.000.000. exclusive of capital stock subscribed prior to the date of the enactment of this Act. The Reconstruction Finance Corporation is authorized to and shall empower the Corporation to use its funds to provide, through insurance, reinsurance, or otherwise, reasonable protection against loss of or damage to property, real and personal, which may result from enemy attack (including any action taken by the military, naval, or air forces of the United States, or its allies in resisting enemy attack), with such general exceptions as the Corporation, with the approval of the President, may deem advisable. Such protection shall be made available on and after a date to be determined and published by the President, upon the payment of such premium or other charge, and subject to such terms and conditions, as the Corporation, with the approval of the President, may establish, but, in view of the national interest involved, the Corporation shall from time to time establish uniform rates for each type of property with respect to which such protection is made available, and, in order to establish a basis for such rates, the Corporation shall estimate, from time to time, the average risk of loss on all property of such type in the United States. Such protection shall be applicable only (l, to such property situated in the United States (including the several states and the District of Columbia), the Canal Zone, the Territories and possessions of the United States, and in such other places as may be determined by the President, for the purposes of this Act, to be under the dominion and control of the United States; (2) to such property in transit between any points located in any of the foregoing; and (3) to all bridges and tunnels between the Cnited States and Canada and between the United States and Mexico: Provided, That such protection shall not be applicable after the date determined by the President to property in transit upon which any agency of the Government in authorized to provjile marine war. risk insurance. The Corporation, with the approval of the President, may suspend, restrict, or otherwise limit such protection in any area to the extent that it may determine to be necessary or advisable in conujleration of the love of control of such area by the United States making it impossible or impracticable to provide such protection in such area, The Corporation, with the approval of the Presi.

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dent, may provide such limitations and general exceptions with respect to classes of property protected and other matters.

See. 4. The Corporation shall have the following general powers in carrying out the objects and purposes not forth in soction 3:

(1) To amend its charter insofar as it is necessary to carry out the objocta, purposes, and general powers set forth in sections 3 and 4.

(2) To adopt, alter, and use a corporate soal, which shall be judicially noticed.

(3) To adopt, amend, and ropeal bylaws governing the conduct of its businoma, and the performance of the powers and duties granted to or imposed upon it by law.

(4) To sue and be sued in its corporato name in any court of competent jurisdiction.

(6) To determine the character of and the necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid, subject to the laws applicable specifically to (overnment corporations.

(6) To acquire, in any lawful manner, any property roal, personal, or mixed, tangible or intangible --to hold, maintain, lino, and operate the name; and to well, lease, or otherwise dispose of the name, whenever any of the foregoing tranunctions are deemed necessary or appropriate to the conduct of the activities authorized by this Act, and on such terms as may be proscribed by the Corporation,

(7) To execute all instruments necessary or appropriate in the oxorciso of any of its functions.

(8) To nise the United States mails in the name manner and under the name conditions as the executive departments of the Federal Government.

(9) To settle and adjust claims held by it agninst other persons or partion and by other persons or parties against the Corporation.

(10) To borrow, hypothecate, and to invest and reinvent its funds.

(11) To appoint much oflicors, agents, attornoys, and employoes as may be necossary for the conduct of the business of the ('orporation; and to delegato to them much powers and to prescribe for them such dution rs may be doomed appropriato by the Corporation.

(12) To take much actions as may be necommary or appropriate to oarry out the powers and duties herein or hereafter specifically granted to or imposed upon it.

Prc. 5. The Corporation, including its franchino, its capital, roser von, purplus, and income, shall be exempt from all taxation (which shall, for all purposos, bo deemed to include males, 1NO, storago, and purchase taxes) now or hereafter imposed by the United States, or any Territory, dependency, or poumonsion thoroof, or by any Stato, county, municipality, or local taxing authority, except that any real property (or buildings which are considerod by the laws of any State to bo personal property for taxation purposes) of the Corporation shall be mubject to State, Territorial, county, municipal, or local taxation to the name oxtent according to its value as other real property is taxed.

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(H, R. 9082, 81st Cong , 2d sons.)

A BILL To grant sucoonalon to the War Damage ('orporation
Be it enacted by the Senate and Tlouse of Representatives of the United States of
America in ('ongress anuomblod, That this Act may be cited in the "War Damago
Corporation Act of 1950".

Hic. 2. Notwithstanding the Government Corporntion ('ontrol Act or tho charter of the War Damage Corporation, the War Damngo Corporation (hereinafter referred to as the "Corporation'') shall have miiCComion for the objects and purposemnet forth in section 3. The Corporation shall not have MIICCOMíon beyond July 1, 1954, except for purposes of liquidation, unless it is extended beyond much date pursuant to an Act of Congramm,

Nrc. 3. The Reconstruction Finance Corporation im directed to supply funds to the Corporation, and the amount of notcm, bonde, debentures, and other much obligations which the Reconstruction Finance Corporation in authorized to 14400 and to have outstanding at any one time under existing Inw in increased by an amount mullicient to carry out the provisions of this section, Huch funds mhiall be supplied only upon the request of the President and the nukrenta nimount of the funda mo mupplied shall not exceed $1,000,000,000, exclusive of capital stock milscribed prior to the date of the enactment of this Act. The Reconstruction Finance Corporation is authorized to and whall empower the Corporntion to 1140 itu funds to provides through insuranca, reintrance, or otherwise, ronsonable protection against 10% of or damnge to property, real and personal, which may

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