Chapter 94. To provide relief in cases of contracts connected with, the prosecution of the war, and for other purposes
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CHAP. 94.— An Act To provide relief in cases of contracts connected with, the prosecution of the war, and for other purposes. March 2, 1919.[[H. R. 13274](/us/bill/65/hr/13274).][[Public, No. 322](/us/pl/65/322).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, War contracts, etc.Secretary of War to adjust, etc., expenses incurred under agreements during the war, for supplies, etc. That the Secretary of War be, and he is hereby, authorized to adjust, pay, or discharge any agreement, express or implied, upon a fair and equitable basis that has been entered into, in good faith during the present emergency and prior to November twelfth, nineteen hundred and eighteen, by any officer or agent acting under his authority, direction, or instruction, or that of the President, with any person, firm, or corporation for the acquisition of lands, or the use thereof, or for damages resulting from notice by the Government of its intention to acquire or use said lands, or for the production, manufacture, sale, acquisition or control of equipment, materials or supplies, or for services, or for facilities, or other purposes connected with the prosecution of the Condition.war, when such agreement has been performed in whole or in part, or expenditures have been made or obligations incurred upon the faith of the same by any such person, firm, or corporation prior to November twelfth, nineteen hundred and eighteen, and such agreement has *Provisos*.Limitations.not been executed in the manner prescribed by law: *Provided*, That in no case shall any award either by the Secretary of War, or the Court of Claims include prospective or possible profits on any part of the contract beyond the goods and supplies delivered to and accepted by the United States and a reasonable remuneration for expenditures and obligations or liabilities necessarily incurred in performing or preparing to perform said contract or order: *Provided 1273further*, That this Act shall not authorize payment to be made of any Time for presenting claims.claim not presented before June thirtieth, nineteen hundred and nineteen: *And provided further*, That the Secretary of War shall report Report to Congress.to Congress at the beginning of its next session following June thirtieth, nineteen hundred and nineteen, a detailed statement showing the nature, terms, and conditions of every such agreement and the payment or adjustment thereof: *And provided further*, That no settlementSettlement no bar to subsequent review, etc. of any claim arising under any such agreement shall bar the United States Government through any of its duly authorized agencies, or any committee of Congress hereafter duly appointed, from the right of review of such settlement, nor the right of recovery of any Recovery In case of fraud, etc.money paid by the Government to any party under any settlement entered into, or payment made under the provisions of this Act, if the Government has been defrauded, and the right of recovery in all such cases shall exist against the executors, administrators, heirs, successors, and assigns, of any party or parties: *And provided further, *That nothing in this Act shall be construed to relieve any officer or No officer relieved of prosecutions for fraud.agent of the United States from criminal prosecution under the provisions of any statute of the United States for any fraud or criminal conduct: *And provided further*, That this Act shall in no way relieve For irregularity, etc.or excuse any officer or his agent from such criminal prosecution because of any irregularity or illegality in the manner of the execution of such agreement: *And provided further*, That in all proceedings Compulsory testimony, etc.hereunder witnesses may be compelled to attend, appear, and testify, and produce books, papers and letters, or other documents; and the Criminal immunity.claim that any such testimony or evidence may tend to criminate the person giving the same shall not excuse such witness from testifying, but such evidence or testimony shall not be used against such person in the trial of any criminal proceeding.
Sec. 2. That the Court of Claims is hereby given jurisdiction Court of Claims.Jurisdiction if award not accepted by claimant.on petition of any individual, firm, company or corporation referred to m Section 1 hereof, to find and award fair and just compensation in the cases specified in said Section in the event that such individual, firm, company or corporation shall not be willing to accept the adjustment, payment or compensation offered by the Secretary of War as herein before provided, or in the event that the Secretary of If adjustment, etc., refused.War shall fail or refuse to offer a satisfactory adjustment, payment or compensation as provided for in said Section.
Sec. 3. That the Secretary of War, through such agency as he Agreements with foreign governments, etc.Adjustment of, for supplying American Expeditionary Forces, with supplies, etc., during the war.may designate or establish is empowered, upon such terms as he or it may determine to be in the interest of the United States, to make equitable and fair adjustments and agreements, upon the termination or in settlement or readjustment of agreements or arrangements entered into with any foreign government or governments or nationals thereof, prior to November twelfth, nineteen hundred and eighteen, for the furnishing to the American Expeditionary Forces or otherwise for War purposes of supplies, materials, Supplies, etc., to foreign governments.facilities, services or the use of property, or for the furnishing of any thereof by the United States to any foreign government or governments, whether or not such agreements or arrangements have been entered into in accordance with applicable statutory provisions;
Restriction.and the other provisions of this Act shall not be applicable to such adjustments. Sec. 4. That whenever, under the provisions of this Act, the Secretary Subcontracts.Evidence required from contractor for protection of, in awards.of War shall make an award to any prime contractor with respect to any portion of his contract which he shall have sublet to any other person, firm, or corporation who has in good faith made expenditures, incurred obligations, rendered service, or furnished material, equipment, or supplies to such prime contractor, with the knowledge and approval of any agent of the Secretary of War duly authorized thereunto, before payment of said award the 1274Secretary of War shall require such prime contractor to present satisfactory evidence of having paid said subcontractor or of the consent of said subcontractor to look for his compensation to said prime contractor only; and in the case of the failure of said Direct payment to subcontractor.prime contractor to present such evidence or such consent, the Secretary of War shall pay directly to said subcontractor the amount found to Lien of contractor insolvent.be due under said award ; and in case of the insolvency of any prime contractor the subcontractor of said prime contractor shall have a lien upon the funds arising from said award prior and superior to the lien of any general creditor of said prime contractor.
Sec. 5.Manganese, etc.Secretary of the Interior to adjust losses in producing, etc., for war activities. That the Secretary of the Interior be, and he hereby is, authorized to adjust, liquidate, and pay such net losses as have been suffered by any person, firm, or corporation, by reason of producing or preparing to produce, either manganese, chrome, pyrites, or tungsten in compliance with the request or demand of the Department of the Interior, the War Industries Board, the War Trade Board, the Shipping Board, or the Emergency Fleet Corporation to supply the urgent needs of the Nation in the prosecution of the war; *Ante*, p. 1009.said minerals being enumerated in the Act of Congress approved October fifth, nineteen hundred and eighteen, entitled “An Act to provide further for the national security and defense by encouraging the production, conserving the supply, and controlling the distribution of those ores, metals, and minerals which have formerly been largely imported, or of which there is or may be an inadequate supply.
” Adjustment by Secretary final, etc.The said Secretary shall make such adjustments and payments in each case as he shall determine to be just and equitable; that the decision of said Secretary shall be conclusive and final, subject to the Funds available.limitation hereinafter provided ; that all payments and expenses incurred by said Secretary, including personal services, traveling and subsistence expenses, supplies, postage, printing, and all other expenses incident to the proper prosecution of this work, both in the District of Columbia and elsewhere, as the Secretary of the Interior *Ante*, p. 1010.may deem essential and proper, shall be paid from the funds appropriated by the said Act of October fifth, nineteen hundred and eighteen, and that said funds and appropriations shall continue to be available for said purpose until such time as the said Secretary shall *Provisos*.Limit.have fully exercised the authority herein granted and performed and completed the duties hereby provided and imposed: *Provided, however*, That the payments and disbursements made under the provisions of this section for and in connection with the payments and settlements of the claims herein described, and the said expenses of administration shall in no event exceed the sum of $8,500,000:
Time for presenting claims.*And provided further*, That said Secretary shall consider, approve, and dispose of only such claims as shall be made hereunder and filed with the Department of the Interior within three months from and after Requirements as to mineral character of property.the approval of this Act: *And provided further*, That no claim shall be allowed or paid by said Secretary unless it shall appear to the satisfaction of the said Secretary that the expenditures so made or obligations so incurred by the claimant were made in good faith for or upon property which contained either manganese, chrome, pyrites, or tungsten in sufficient quantities to be of commercial importance: *And provided further*, That no claims shall be paid unless it shall appear to the satisfaction of said Secretary that moneys were invested or obligations were incurred subsequent to April sixth, nineteen Character of money investments to be considered.hundred and seventeen, and prior to November twelfth, nineteen hundred and eighteen, in a legitimate attempt to produce either manganese, chrome, pyrites, or tungsten for the needs of the Nation for the prosecution of the war, and that no profits of any kind shall be included in the allowance of any of said claims, and that no investment for merely speculative purposes shall be recognized in any 1275manner by said Secretary: *And provided further*, That the settlement Settlement no bar to subsequent review, etc.of any claim arising under the provisions of this section shall not bar the United States Government, through any of its duly authorized agencies, or any committee of Congress hereafter duly appointed, from the right of review of such settlement, nor the right to recover Recovery in case of fraud.any money paid by the Government to any party under and by virtue of the provisions of this section, if the Government has been defrauded, and the right of recovery in all such cases shall extend to the executors, administrators, heirs, and assigns of any party.Report to Congress.
That a report of all operations under this section, including receipts and disbursements, shall be made to Congress on or before the first Monday in December of each year. That nothing in this section shall be construed to confer jurisdiction No Jurisdiction of courts.upon any court to entertain a suit against the United States: *Provided further*, That in determining the net losses of any claimant *Proviso*.Values to be considered in determining losses.the Secretary of the Interior shall, among other things, take into consideration and charge to the claimant, the then market value of any ores or minerals on hand belonging to the claimant, and also the salvage or usable value of any machinery or other appliances which may be claimed was purchased to equip said mine for the purpose of complying with the request or demand of the agencies of the Government above mentioned in the manner aforesaid.
Approved, March 2, 1919.