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Code · STATUTES-AT-LARGE · Vol. 49 STAT. · July 1, 1898 · Public Law 382

Public Law 382. to establish a uniform system of bankruptcy throughout the United States”, as amended, be, and it is hereby, amended to read as follows: " “Sec. 77

19,592 words·~89 min read·/statutes-at-large/vol-49/public-law-382·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(/us/pl/74/381).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That section 77Bankruptcy Act of 1898, amendments.Vol. 47, p, 1474; [U. S. C., p. 337](/us/usc/p337). of the Act of July 1, 1898, entitled “An Act to establish a uniform system of bankruptcy throughout the United States”, as amended, be, and it is hereby, amended to read as follows: " “Sec. 77. Reorganization of railroads engaged in interstate commerce. Reorganization of railroads engaged in interstate commerce.—
(a)Any railroad corporation may file a petition stating that it is insolvent or unable to meet its debts as they mature and that it desires to effect a plan of reorganization. The petitionPetiton to be filed. shall be filed with the court in whose territorial jurisdiction such corporation, during the preceding six months or the greater portion thereof, has had its principal executive or operating office, and aCopy to Interstate Commerce Commission. copy of the petition shall at the same time be filed with the Interstate Commerce Commission (hereinafter called the ‘Commission’):*Proviso*.When railroad wholly within one State. *Provided*, That when any railroad, although engaged in interstate commerce, lies wholly within one State, such proceedings shall be brought in the Federal district court of the district in which its principal operating office in such State during the preceding six months or the greater portion thereof has been located. TheFiling fee. petition shall be accompanied by payment to the clerk of a filing fee of $100, which shall be in addition to the fees required to be collected by the clerk under other sections of this Act. Upon the filing ofOrder of approval or dismissal. such a petition, the judge shall enter an order either approving it as properly filed under this section, if satisfied that such petition complies with this section and has been filed in good faith, or dismissing it, if he is not so satisfied. If the petition is so approved,Jurisdiction over debtor, if approved. the court in which such order is entered shall, during the pendency of the proceedings under this section and for the purposes thereof, have exclusive jurisdiction of the debtor and its property wherever located, and shall have and may exercise in addition to the powers conferred by this section all the powers, not inconsistent with this section, which a Federal court would have had if it had appointed a receiver in equity of the property of the debtor for any purpose. Process of the court shall extend to and be valid when served inService of process; Supreme Court to issue rules concerning. any judicial district. The Supreme Court of the United States shall promulgate rules relating to the service of process outside of the district in which the proceeding is pending, and any other rules which it may deem advisable in order to aid district courts and circuit courts of appeal in exercising the jurisdiction herein conferred upon them. The railroad corporation shall be referred to“Debtor” construed. in the proceedings as a ‘debtor.’ Any railroad corporation thePetition by corporation owned by railroad corporation filing same. majority of the capital stock of which having power to vote for the election of directors is owned, either directly or indirectly through an intervening medium, by any railroad corporation filing a petition as a debtor may file, with the court in which such other debtor has filed such a petition, and in the same proceeding, a petition, a 912copy of which shall also be filed at the same time with the Commission, stating that it is insolvent or unable to meet its debts as they mature, and that it desires to effect a reorganization in connection with, or as a part of the plan of reorganization of such other Court order of approval or dismissal.debtor; and upon the filing of such petition, the judge shall enter an order either approving it as properly filed under this section, if satisfied that such petition complies with this section and has been filed in good faith, or dismissing it if not so satisfied, and thereupon Jurisdiction.such court, if it approves such petition, shall have the same jurisdiction with respect to such debtor, its property and its creditors and stockholders, as the court has with respect to such other debtor. Creditors’ petition.Creditors of any railroad corporation, having claims aggregating not less than 5 per centum of all the indebtedness of such corporation as shown in the latest annual report which it has filed with the Commission at the time when the petition is filed, may, if such corporation has not filed a petition under this section, file with the court in which such corporation might file a petition under this section, a petition stating that such corporation is insolvent or unable to meet its debts as they mature and that such creditors have claims aggregating not less than 5 per centum of all such indebtedness of such corporation and propose that it shall effect a reorganization; Copies to Commission and corporation.copies of such petition shall be filed at the same time with the Commission and served upon such corporation. Such corporation shall, Answer thereto.within ten days after such service, answer such petition. If such answer shall admit the jurisdiction of the court and the material allegations of the petition, the judge shall enter an order approving the petition as properly filed if satisfied that it complies with this section and has been filed in good faith, or dismissing it, if not so Judge to summarily determine issues if answer denies jurisdiction, etc.satisfied. If such answer shall deny either the jurisdiction of the court or any material allegation of the petition the judge shall summarily determine the issues presented by the pleadings without the intervention of a jury and it he shall find that the material allegations are sustained by the proofs and that the petition complies with Order approving petition; dismissal.this section and has been filed in good faith, the judge shall enter an order approving the petition; otherwise he shall dismiss the petition. Proceedings.If any such petition shall be so approved, the proceedings thereon shall continue with like effect as if the railroad corporation Neither petition nor answer an act of bankruptcy.had itself filed a petition under this section. In case any petition shall be dismissed, neither the petition nor the answer of a debtor shall constitute an act of bankruptcy or an admission of insolvency or of inability to meet maturing obligations or be admissible in evidence, without the debtor’s consent, in any proceedings then or thereafter pending or commenced under this Act or in any State or Creditors may controvert assertions prior to hearing.Federal court. If, in any case in which the issues have not already been tried under the provisions of this subdivision, any of the creditors shall, prior to the hearing provided for in paragraph
(1)of subsection
(c)of this section, appear and controvert the facts alleged in the petition, the judge shall determine, as soon as may be, the issues presented by the pleadings, without the intervention of a jury, and, unless the material allegations of the petition are sustained by the proofs, shall dismiss the petition.
(b)Reorganization plan.Provisions included. A plan of reorganization within the meaning of this section
(1)shall include provisions modifying or altering the rights of creditors generally, or of any class of them, secured or unsecured, either through the issuance of new securities of any character or otherwise;
(2)may include provisions modifying or altering the rights of stockholders generally, or of any class of them, either through the issuance of new securities of any character, or otherwise;
(3)may include, for the purpose of preserving such interests 913of creditors and stockholders as are not otherwise provided for, provisions for the issuance to any such creditor or stockholder of options or warrants to receive, or to subscribe for, securities of the reorganized company in such amounts and upon such terms and conditions as may be set forth in the plan;
(4)shall provide for fixed charges (including fixed interest on funded debt, interest on unfunded debt, amortization of discount on funded debt, and rent for leased railroads) in such an amount that, after due consideration of the probable prospective earnings of the property in light of its earnings experience and all other relevant facts, there shall be adequate coverage of such fixed charges by the probable earnings available for the payment thereof;
(5)shall provide adequate means for the execution of the plan, which may include the transfer of any interest in or control of all or any part of the property of the debtor to another corporation or corporations, the merger or consolidation of the debtor with another corporation or corporations, the retention of all or any part of the property by the debtor, the sale of all or any part of the property of the debtor either subject to or free from any lien at not less than a fair upset price, the distribution of all or any assets, or the proceeds derived from the sale thereof, among those having an interest therein, the satisfaction or modification of any liens, indentures, or other similar interests, the curing or waiver of defaults, the extension of maturity dates of outstanding securities, the reduction in principal and/or rate of interest and alteration of other terms of such securities, the amendment of the charter of the debtor, and/or the issuance of securities of either the debtor or any such other corporation or corporations for cash, or in exchange for existing securities, or in satisfaction of claims or rights or for other appropriate purposes; and may deal with all or any part of the property of the debtor; may reject contracts of the debtor which are executory in whole or in part, including unexpired leases; and may include any other appropriate provisions not inconsistent with this section. The adoption of an executory contract or unexpired lease by theExecutory contract or unexpired lease. trustee or trustees of a debtor shall not preclude a rejection of such contract or lease in a plan of reorganization approved hereunder, and any claim resulting from such rejection shall not have priorityAdoption of, to vest no claim with priority, “Securities” construed. over any other claims against the debtor because such contract or lease had been previously adopted. The term “securities” shall include evidences of indebtedness either secured or unsecured, bonds, stock, certificates of beneficial interest therein, certificates of beneficial interest in property, options, and warrants to receive, or to subscribe for, securities. The term “stockholders” shall include the“Stockholders.” holders of voting-trust certificates. The term “creditors” shall“Creditors.” include, for all purposes of this section all holders of claims of whatever character against the debtor or its property, whether or not such claims would otherwise constitute provable claims under this Act, including the holder of a claim under a contract executory in whole or in part including an unexpired lease. The term “claims” includes debts, whether liquidated or“Claims.” unliquidated, securities (other than stock and option warrants to subscribe to stock), liens, or other interests of whatever character. For allPriority of designated unsecured claims. purposes of this section unsecured claims, which would have been entitled to priority if a receiver in equity of the property of the debtor had been appointed by a Federal court on the day of the approval of the petition, shall be entitled to such priority and the holders of such claims shall be treated as a separate class or classes of creditors. In case an executory contract or unexpired lease ofRejected executory contracts, etc. property shall be rejected, or shall not have been adopted by a 914trustee appointed under this section, or shall have been rejected by a receiver in equity in a proceeding pending prior to the institution of a proceeding under this section, or shall be rejected by any plan, Rights of Injured parties.any person injured by such nonadoption or rejection shall for all purposes of this section be deemed to be a creditor of the debtor to the extent of the actual damage or injury determined in accordance with principles obtaining in equity proceedings. The provisions of section 60 of this Act shall apply to a proceeding under this section. For all purposes of this section any creditor or stockholder may act in person or by an attorney at law or by a duly authorized agent or committee subject to the provisions of subsection Statutes of limitation suspended.(p) hereof. The running of all statutes of limitation shall be suspended during the pendency of a proceeding under this section.
(c)After approving the petition:
(1)Duties of judge after approval of petition. The judge shall forthwith (and in pending proceedings immediately upon the effective date or this amendatory section) require Notice of hearing.the debtor to give such notice as the order may direct to the mortgage trustees, creditors and stockholders, and to cause publication thereof for such period and in such newspapers as the judge may direct, of a hearing to be held not later than thirty days after the date of such order, at which hearing or any adjournment thereof Appointment of trustees.the judge shall appoint one or more trustees of the debtor’s property. Such appointments shall become effective upon ratification thereof by the Commission without a hearing, unless the Commission shall deem a hearing necessary. Where a trustee is appointed who within one year prior thereto has been an officer, director, or employee of the debtor corporation, any subsidiary corporation, or Additional trustee.any holding company connected therewith, the judge, subject to ratification by the Commission as herein provided, shall appoint another trustee or trustees who shall not have had any such affiliations: *Provided*, *Proviso*.Not required for smaller debtors.That the appointment of such additional trustee or trustees shall not be required for a debtor the annual operating revenues of which were less than $1,000,000 for the previous calendar year.
(2)Fix amount of bond, etc. The judge shall fix the amount of the bond of every trustee. He may thereafter terminate any such appointments on cause shown, Appointing substitute trustee.and may in that event and in the event of a vacancy from any other cause, in the manner and within the qualifications herein provided for the appointment of trustees, appoint a substitute trustee or trustees, and in the same manner and within the same qualifications may appoint an additional trustee, and shall fix the amount of the bond of every such substitute or additional trustee or trustees. The Legal counsel.judge shall in his discretion confirm the appointment of such legal counsel for the trustees as they shall select, with power of removal. Compensation.The trustee or trustees and their counsel shall receive only such compensation from the estate of the debtor as the judge may from time to time allow within such maximum limits as may be approved Bond, powers, etc.by the Commission as reasonable. The trustee or trustees so appointed, upon filing such bond, shall have all the title and shall exercise, subject to the control of the judge and consistently with the provisions of this section, all of the powers of a trustee appointed pursuant to section 44 of this Act or any other section of this Act, and, to. the extent not inconsistent with this section, if authorized by the judge, the powers of a receiver in an equity proceeding, and, subject to the control of the judge and the jurisdiction of the Commission as provided by the Interstate Commerce Act as now or hereafter amended, the power to operate the business of the debtor. Possession and operation of business, etc.Prior to the appointment of a trustee, the debtor on behalf of the court shall continue in the possession of the property and shall 915operate the business thereof during such period, and shall have all the title to the property and shall exercise all power consistent with the provisions of this section, subject at all times to the control of the judge, and to such limitations, restrictions, terms, and conditions as he may from time to time impose and prescribe.
(3)The judge may, upon not less than fifteen days’ noticeJudge may authorize issue of certificates for cash, etc. published in such manner and in such newspapers as the judge may in his discretion determine, which notice so determined shall be sufficient, for cause shown, and with the approval of the Commission, in accordance with section 20
(a)of the Interstate Commerce Act, as now or hereafter amended, authorize the trustee or trustees to issue certificates for cash, property, or other consideration approved by the judge, for such lawful purposes and upon such terms and conditions and with such security and such priority in payments over existing obligations, secured or unsecured, or receivership charges, as might in an equity receivership be lawful.
(4)The judge shall require the officers of the debtor or the trusteeRequire debtor to file additional schedules.Vol. 30, p. 548; [U. S. C., p. 321](/us/usc/p321). or trustees, at such time or times as the judge may direct, and in lieu of the schedules required by section 7 of this Act, to file with the court such schedules and submit such other information as may be necessary to disclose the conduct of the debtor’s affairs and the fairness of any proposed plan; and shall direct the officers of the debtor,Lists to be prepared. or the trustee or trustees, within such time as the judge shall set, to prepare and file with the court a list of all known bondholders and creditors of the debtor, and the amounts and character of their debts, claims, and securities, and the last known post-office address or place of business of each bondholder and creditor, and a list of all known stockholder’s of the debtor, with the last known post-office address or place of business of each, which lists the judge may require to be brought down to date at any time. The contents ofNot deemed admissions by debtor, etc. such lists shall not constitute admissions by the debtor or the trustees in a proceeding under this section or otherwise.
(5)It shall be the duty of anyone having information as to theInformation as to holders of securities of debtor. names and addresses of the holders of any securities of the debtor to divulge such information to the trustee or trustees, upon written request therefor and, upon petition by any party in interest, and after hearing, the judge may order the production of any such information by anyone having and refusing to divulge it to any trustee, upon written request therefor. The judge may direct that the cost of preparing such information shall be borne by the debtor’s estate.
(6)If a lease of a line of railroad is rejected, and if the lessee,Leases. with the approval of the judge, shall elect no longer to operate the leased line, it shall be the duty of the lessor at the end of a period to be fixed by the judge to begin the operation of such line, unless the judge, upon the petition of the lessor, shall decree after hearing that it would be impracticable and contrary to the public interest for the lessor to operate the said line, in which event it shall be the duty of the lessee to continue operation on or for the account of the lessor until the abandonment of such line is authorized by the Commission in accordance with the provisions of section 1 of the Interstate Commerce Act as amended.
(7)The judge shall promptly determine and fix a reasonableTime for filing claims. time within which the claims of creditors may be filed or evidenced and after which no claim not so filed or evidenced may participate except on order for cause shown, the manner in which such claims may be filed or evidenced and allowed, and for the purposes of the plan and its acceptance, after notice and hearing, the division ofClassifications. creditors and stockholders into classes according to the nature of 916their respective claims and interests. Such division shall not provide for separate classification unless there he substantial differences Combined claim.in priorities, claims, or interests. The trustee or trustees under any mortgage, deed of trust, or indenture outstanding against the property may, within the time prescribed, file a verified claim in behalf of all bonds or securities outstanding under such mortgage, deed of trust, or indenture, in which event it shall be unnecessary for the holders of such bonds or securities to file claims in their own behalf, but nothing herein shall constitute such trustee or trustees the representative or representatives of such holders for the purpose of accepting or rejecting any plan of reorganization.
(8)Periods for filing claims, hearings, etc. The judge shall cause reasonable notice of the period in which claims may be filed, of hearings on application for the dismissal of the proceedings, or for the final allowance of fees or expenses to be given creditors and stockholders by publication or otherwise.
(9)Reporting irregularities, etc. The judge shall direct the trustee or trustees, and may request the Commission through such of its agencies as it may designate, to report to him any facts pertaining to irregularities, fraud, misconduct, or mismanagement, as a consequence of which the debtor may have a cause of action arising therefrom against any person or corporation.
(10)Records and accounts. The judge may direct the debtor or the trustee or trustees to keep such records and accounts, in addition to the accounts prescribed by the Commission, as will permit of such a segregation and allocation, as the necessities of the case may require, of the earnings and expenses between and to the divisions and parts of the railroad or other property of the debtor which are separately subject to the liens of the various mortgages or deeds of trust, or are separately subject to lease, and may refer to the Commission for its recommendations after hearings thereon if the parties shall so request and/or the Commission determine necessary or desirable, as to the method or formula by which such segregation and allocation shall be made; and thereafter such segregation and allocation may be made at the expense of the debtor’s estate.
(11)Reports as to property, business, etc., of debtor. The Commission may direct such of its agencies as it may designate to file in the proceedings before the Commission a report, and additional or supplemental reports at such time or times as the Commission shall designate, of such data with reference to the property, business, earnings, and corporate organization of the debtor and such other facts as the Commission, after hearing if it deems necessary, shall determine to be necessary or helpful information for the purposes of the preparation of reorganization plans, and for the purpose of aiding in determining the method or formula of allocating earnings permitted by subdivision
(10)of this subsection To be prima facie evidence of facts stated.(c). Such report or reports shall be prima facie evidence of the facts therein stated in any proceeding under this section. The actual cost of preparing said report or reports shall be certified by the Commission and shall be borne by the debtor’s estate.
(12)Administration, etc., expense allowances. Within such maximum limits as are fixed by the Commission, the judge may make an allowance, to be paid out of the debtor’s estate, for the actual and reasonable expenses (including reasonable attorney’s fees) incurred in connection with the proceedings and plan by parties in interest and by reorganization managers and committees or other representatives of creditors and stockholders, and within such limits may make an allowance to be paid out of the debtor’s estate for the actual and reasonable expenses incurred in connection with the proceedings and plan and reasonable compensation for services in connection therewith by trustees under indentures, depositaries and such assistants as the Commission with the 917approval of the judge may especially employ. Appeals from ordersAppeals from court orders. of the court fixing such allowances may be taken to the circuit court of appeals independently of other appeals in the proceeding and shall be heard summarily. The Commission shall, at such time or times as it may deem appropriate, after hearing, fix the maximum allowances which may be allowed by the court pursuant to the provisions of paragraph
(12)of this subsection
(c)and, afterMaximum compensation allowance. hearing if the Commission shall deem it necessary, the maximum compensation which may be allowed by the court pursuant to the provisions of paragraph
(2)of this subsection (c).
(13)The judge may on his own motion or at the request of theReference to special masters. Commission refer any matters for consideration and report, either generally or upon specified issues, to one of several special masters who shall have been previously designated to act as special masters in any proceedings under this section by order of any circuit court of appeals and may allow such master a reasonable compensation for his services and actual and reasonable expenses. The circuitDesignation of. court of appeals of each circuit shall designate three or more members of the bar as such special masters whom they deem qualified for such services, and shall from time to time revise such designations by changing the persons designated or their number, as the public interest may require: *Provided, however*, That there shall*Proviso*.Number. always be three of such special masters qualified for appointment in each circuit who shall hear any matter referred to them under this section by a judge of any district court. The debtor, anyRight of debtor, creditor, etc., to be heard. creditor or stockholder, or the duly authorized committee, attorney or agent of either or the. trustee or trustees of any mortgage, deed of trust or indenture pursuant to which securities of the debtor are outstanding, shall have the right to be heard on all questions arising in the proceedings, and, upon petition therefor and cause shown, any such person or any other interested party may be permitted to intervene. The judge may, after hearing, make reasonable rulesJudge may make appropriate rules. defining the matters upon which notice shall be given to other than interveners and the manner of giving such notice.
(d)The debtor, after a petition is filed as provided in subsectionReorganization plans. (a), shall file a plan of reorganization within six months of the entry of the order by the judge approving the petition as properly filed, or if heretofore approved, then within six months of theFiling provisions. effective date of this Act, and not thereafter unless such time is extended by the judge from time to time for cause shown, no single extension at any one time to be for more than six months. Such plan shall also lie filed with the Commission at the same time. Such plans may likewise be filed at any time before, or with the consent of the Commission during, the hearings hereinafter provided for, by the trustee or trustees, or by or on behalf of the creditors being not less than 10 per centum in amount of any class of creditors, or by or on behalf of any class of stockholders being not less than 10 per centum in amount of any such class, or with the consent of the ommission by any party in interest. After the filing of such aPublic hearings. plan, the Commission, unless such plan shall be considered by it to be prima facie impracticable, shall, after due notice to all stockholders and creditors given in such manner as it shall determine, hold public hearings, at which opportunity shall be given to any interested party to be heard, and following which the Commission shallReport by Commission. render a report and order in which it shall approve a plan, which may be different from any which has been proposed, that will in its opinion meet with the requirements of subsections
(b)and
(e)of this section, and will be compatible with the public interest; or it shall render a report and order in which it shall refuse to approve 918any plan. In such report the Commission shall state fully the reasons for its conclusions. Report may be supplemented or modified.The Commission may thereafter, upon petition for good cause shown filed within sixty days of the date of its order, and upon further hearings if the Commission shall deem necessary, in a supplemental report and order modify any plan which it has approved, Commission to certify plan to court, if it approves.stating the reasons for such modification. The Commission, if it approves a plan, shall thereupon certify the plan to the court together with a transcript of the proceedings before it and a copy of the report and order approving the plan. No plan shall be approved or confirmed by the judge in any proceeding under this section unless the plan shall first have been approved by the Commission and certified to the court.
(e)Notice by court to all parties in interest.*Post*, p. 1909. Upon the certification of a plan by the Commission to the court, the court shall give due notice to all parties in interest of the time within which such parties may file with the court their objections to such plan, and such parties shall file, within such time as may be fixed in said notice, detailed and specific objections in writing Hearings.to the plan and their claims for equitable treatment. The judge shall, after notice in such manner as he may determine to the debtor, its trustee or trustees, stockholders, creditors, and the Commission, hear all parties in interest in support of, and in opposition to, such objections to the plan and such claims for equitable treatment. Approval if designated conditions met.After such hearing, and without any hearing if no objections are filed, the judge shall approve the plan if satisfied that:
(1)It complies with the provisions of subsection
(b)of this section, is fair and equitable, affords due recognition to the rights of each class of creditors and stockholders, does not discriminate unfairly in favor of any class of creditors or stockholders, and will conform to the requirements of the law of the land regarding the participation of the various classes of creditors and stockholders;
(2)the approximate amounts to be paid by the debtor, or by any corporation or corporations acquiring the debtor’s assets, for expenses and fees incident to the reorganization, have been fully disclosed so far as they can be ascertained at the date of such hearing, are reasonable, are within such maximum limits as are fixed by the Commission, and are within such maximum limits to be subject to the approval of the judge;
(3)the plan provides for the payment of all costs of administration and all other allowances made or to be made by the judge, except that allowances provided for in subsection (c), paragraph
(12)of this section, may be paid in securities provided for in the plan if those entitled thereto will accept such payment, and the judge is hereby given power to approve the same. Opinion stating reason, filed if plan disapproved.Action to be taken.If the judge shall not approve the plan, he shall file an opinion, stating his conclusions and the reason therefor, and he shall enter an order in which he may either dismiss the proceedings, or in his discretion and on motion of any party in interest refer the proceedings back to the Commission for further action, in which event he shall transmit to the Commission a copy of any evidence received. If the proceedings are referred back to the Commission, it shall proceed to a reconsideration of the proceedings under the provisions If plan approved; procedure.of subsection
(d)hereof. If the judge shall approve the plan, he shall file an opinion, stating his conclusions and the reasons therefor, and enter an order to that effect, and shall send a certified copy of Submission to creditors of each class whose claims allowed.such opinion and order to the Commission. The plan shall then be submitted by the Commission to the creditors of each class whose claims have been filed and allowed in accordance with the requirements of subsection
(c)hereof, and to the stockholders of each class, 919and/or to the committees or other representatives thereof, for acceptance or rejection, within such time as the Commission shall specify, together with the report or reports of the Commission thereon or such a summarization thereof as the Commission may approve, and the opinion and order of the judge: *Provided*, That submission to*Provisos*.Corporation found insolvent. any class of stockholders shall not be necessary if the Commission shall have found, and the judge shall have affirmed the finding,
(a)that at the time of the finding the corporation is insolvent, or thatLacking equity value. at the time of the finding the equity of such class of stockholders has no value, or that the plan provides for the payment in cash to such class of stockholders of an amount not less than the value of their equity, if any, or
(b)that the interests of such class ofInterests not adversely affected. stockholders will not be adversely and materially affected by the plan, or
(c)that the debtor has pursuant to authorized corporate actionCorporate acceptance of plan. accepted the plan and its stockholders are bound by such acceptance: *Provided further*, That submission to any class of creditors shallSubmission unnecessary if class protected. not be necessary if the Commission shall have found, and the judge shall have affirmed the finding, that the interests of such class of creditors will not be adversely and materially affected by the plan, or that at the time of the finding the interests of such class of creditors have no value, or that the plan provides for the payment in cash to such class of creditors of an amount not less than the value of their interests. For the purpose of this section the acceptance or rejection by any creditor or stockholder shall be in writing, executed by him or by his duly authorized attorney, committee, or representative. If the United States of America, or any agencyWhen United States is a creditor or stockholder. thereof, or any corporation (other than the Reconstruction Finance Corporation) the majority of the stock of which is owned by the United States of America, is a creditor or stockholder, the President of the United States or any officer or agency he may designate, is hereby authorized to act in respect of the interest or claims of the United States or of such agency or other corporation. The expense of such submission shall be certified by the Commission and shall be borne by the debtor’s estate. The Commission shall certify to the judge the results of such submission. Upon receipt of such certification, the judge shall confirm theConfirmation by court.Conditions necessary. plan if satisfied that it has been accepted by or on behalf of creditors of each class to which submission is required under this subsection holding more than two-thirds in amount of tire total of the allowed claims of such class which have been reported in said submission as voting on said plan, and by or on behalf of stockholders of each class to which submission is required under this subsection holding more than two-thirds of the stock of such class which has been reported in said submission as voting on said plan; and that such acceptances have not been made or procured by any means forbidden by law: *Provided*, That, if the plan has not been so accepted by the*Proviso*.Judge may overrule rejection if satisfied plan meets requirements. creditors and stockholders, the judge may nevertheless confirm the plan if he is satisfied and finds, after hearing, that it makes adequate provision for fair and equitable treatment for the interests or claims of those rejecting it; that such rejection is not reasonably justified in the light of the respective rights and interests of those rejecting it and all the relevant facts; and that the plan conforms to the requirements of clauses
(1)to (3), inclusive, of the first paragraph of this subsection (e). If the judge shall confirm the plan, he shall enter an order and file an opinion with a statement of his conclusions and his reasons therefor. If the judge shall not confirm the plan,Proceedings if not confirmed. he shall file an opinion, with a statement of his conclusions and his reasons therefor, and enter an order in which he shall either dismiss920 the proceedings, or, in his discretion and on the motion of any party in interest, refer the case back to the Commission for further proceedings, including the consideration of modifications of the plan or the proposal of new plans. In the event of such a reference back to the Commission, the proceedings with respect to any modified or new plan shall be governed by the provisions of this section in like manner as in an original proceeding hereunder. Appraisal of property.If it shall be necessary to determine the value of any property for any purpose under this section, the Commission shall determine such value and certify the same to the court in its report on the plan. The value of any property used in railroad operation shall be determined on a basis which will give due consideration to the earning power of the property, past, present, and prospective, and all other relevant facts. In determining such value only such effect shall be given to the present cost of reproduction new and less depreciation and original cost of the property, and the actual investment therein, as may be required under the law of the land, in light of its earning power and all other relevant facts.
(f)Binding, upon court confirmation. Upon confirmation by the judge, the provisions of the plan and of the order of confirmation shall, subject to the right of judicial review, be binding upon the debtor, all stockholders thereof, including those who have not, as well as those who have, accepted it, and all creditors secured or unsecured, whether or not adversely affected by the plan, and whether or not their claims shall have been filed, and, if filed, whether or not approved, including creditors who have Orders, etc., of court to be executed.not, as well as those who have, accepted it. Upon confirmation of the plan, the debtor and any other corporation or corporations organized or to be organized for the purpose of carrying out the plan, shall have full power and authority to, and shall put into effect and carry out the plan and the orders of the judge relative thereto, under and subject to the supervision and the control of the judge, the laws of any State or the decision or order of any State Property to be clear of debtor’s claims.authority to the contrary notwithstanding. The property dealt with by the plan, when transferred and conveyed to the debtor or to the other corporation or corporations provided for by the plan, or when retained by the debtor pursuant to the plan, shall be free and clear of all claims of the debtor its stockholders and creditors, and the Discharge of debtor; exception.debtor shall be discharged from its debts and liabilities, except such as may consistently with the provisions of the plan be reserved in the order confirming the plan or directing such transfer and conveyance or retention, and the judge may require the trustee or trustees appointed hereunder, the debtor, any mortgagee, the trustee of any obligation of the debtor, and all other proper and necessary parties, to make any such transfer or conveyance, and may require the debtor to join in any such transfer or conveyance made by the Final decree.trustee or trustees. Upon the termination of the proceedings a final decree shall be entered discharging the trustee or trustees, and making such provisions as may be equitable, by way of injunction or otherwise, and closing the case. Upon confirmation of a plan the Commission shall, without further proceedings, grant authority for the issue of any securities, assumption of obligations, transfer of any property, sale, consolidation or merger of the debtor’s property, or pooling of traffic, to the extent contemplated by the plan and not inconsistent with the provisions and purposes of the Interstate Prohibited acts under Securities Act not to affect designated transactions.Vol. 48, pp. 77, 906; [U. S. C., p. 521](/us/usc/p521).Commerce Act as now or hereafter amended. The provisions of title I and of section 5 of the Securities Act of 1933, as amended, shall not apply to the issuance, sale, or exchange of any of the following securities, which securities and transactions therein shall, for the purposes of said Securities Act, be treated as if they were 921specifically mentioned in sections 3 and 4 of the said Securities Act, respectively:
(1)All securities issued pursuant to any plan of reorganization confirmed by the judge in accordance with the provisions of this section;
(2)all securities issued pursuant to such plan for the purpose of raising money for working capital and other purposes of such plan; (3 ) all securities issued by the debtor or by the trustee or trustees pursuant to subdivision (c), clause
(3)of this section;
(4)all certificates of deposit representing securities of, or claims against, the debtor, with the exception of such certificates of deposit as are issued by committees not subject to subsection
(p)hereof. The provisions of subdivision
(a)of section
(14)of the Securities Exchange Act of 1934 shall not. be applicable with respectVol. 48, p. 895. to any action or matter which is within the provisions of subsection
(p)hereof.
(g)If in the light of all the existing circumstances there is undueJudge to dismiss proceedings it reorganization of debtor unduly delayed. delay in a reasonably expeditious reorganization of the debtor, the judge, in his discretion, shall, on motion of any party in interest or on his own motion, after hearing and after consideration of the recommendation of the Commission, dismiss the proceedings. Upon the filing of such an order of dismissal, all right, title, or interest of the trustee or trustees shall vest by operation of law in the debtor unless otherwise provided by such order.
(h)The provisions of subdivisions 1, 2, and 3 of schedule A ofRevenue Acts of 1926 and 1932.Vol. 44, p. 101; Vol. 47, p. 272.[U. S. C., p. 1107](/us/usc/p1107). title VIII of the Revenue Act of 1926, as amended by sections 721, 722, and 723 of the Revenue Act of 1932, and the provisions of subdivisions 8 and 9 of the same schedule A as added by sections 724 and 725 of the Revenue Act of 1932, and any amendments theretoStamp tax provisions not applicable. unless specifically providing to the contrary, shall not apply to the issuance, transfer, or exchange of securities or the making or delivery of conveyances to make effective any plan of reorganization confirmed under the provisions of this section.
(i)If a receiver or trustee of all or any part of the property of aFiling petition, when receiver appointed. debtor has been appointed by a Federal or State court, whether before or after this amendatory section takes effect, a petition or answer may be filed under this section at any time thereafter by such debtor, or its creditors as provided in subsection
(a)of this section, and if such petition is approved, the trustee or trustees appointed under this section, or the debtor until such trustee or trusteesTrustees to possess property. are appointed, shall be entitled forthwith to possession of and be vested with title to such property, and the judge shall makeProtective measures; expenses, etc. such orders as he may deem equitable for the protection of obligations incurred by the receiver or receivers or prior trustee or trustees and for the payment of such reasonable administrative expenses and allowances in the prior proceedings as may be fixed by the court appointing such receiver or trustee. Whether or not a receiver orOrder directing transfer of debtor’s property. trustee has been appointed by a Federal or State court prior or subsequent to the institution of a proceeding under this section and upon the dismissal of such proceeding under this section, the judge may include in the order of dismissal appropriate provisions directing the trustee or trustees, or the debtor if no trustee has been appointed, at the time of such order of dismissal, to transfer possession of the debtor’s property within the territorial jurisdiction of such Federal or State court to the prior receiver or trustee, if a prior receiver or trustee has been so appointed by such Federal or State court, or to a receiver or trustee appointed by such Federal or State court, upon such terms as the court in the proceeding under this section may deem equitable for the protection of the obligations incurred by any trustee or trustees appointed under this section and for the payment of administrative expenses and allowances in the 922proceedings hereunder. Upon the filing of such order of dismissal all title to the property in the trust estate shall vest as therein provided. “Federal court” construed.For the purposes of this section the words “Federal court” shall include the district courts of the United States and of the Territories and possessions to which this title is or may hereafter be applicable, the Supreme Court of the District of Columbia, and the United States Court of Alaska.
(j)Further stay of pending suits. In addition to the provisions of section 11 of this Act for the staying of pending suits against the debtor, the judge may enjoin or stay the commencement or continuation of suits against the debtor until after final decree; and may, upon notice and for cause shown, enjoin or stay the commencement or continuance of any judicial proceeding to enforce any lien upon the estate until after final decree: *Provided*, *Proviso*.Transportation damage claims.That suits or claims for damages caused by the operation of trains, busses, or other means of transportation may be filed and prosecuted to judgment in any court of competent jurisdiction and any order staying the prosecution of any such cause of action or Removal of causes to District Court.appeal shall be vacated. Proceedings under section 77 or under this amendatory Act shall not be grounds for the removal of any cause of action to the United States District Court which was not removable before the passage and approval of said section 77 and any order removing any cause of action or enjoining the prosecution of any such cause of action in any court is null and void and any cause of action heretofore removed from a State court on account of said section 77 shall be remanded to the court from which it was removed. Title of any owner to equipment not impaired.The title of any owner, whether as trustee or otherwise, to rolling-stock equipment leased or conditionally sold to the debtor, and any right of such owner to take possession of such property in compliance with the provisions of any such lease or conditional sale contract, shall not be affected by the provisions of this section.
(k)Certified copy of confirming order, as evidence. A certified copy of the final order confirming a plan of reorganization, or of any other order or decree entered in a proceeding under this section, shall be evidence of the jurisdiction of the court, the regularity of the proceedings, and the fact that the order or decree was made. A certified copy of an order directing the transfer and conveyance of the property dealt with by the plan as provided in subsection
(f)of this section, or as specified in an order dismissing the proceedings as provided in subsection (i), shall be evidence of the transfer and conveyance of title accordingly, and if recorded shall impart the same notice that a deed, if recorded, would impart.
(l)Effect of proceedings hereunder. In proceedings under this section and consistent with the provisions thereof, the jurisdiction and powers of the court, the duties of the debtor and the rights and liabilities of creditors, and of all persons with respect to the debtor and its property, shall be the same as if a voluntary petition for adjudication had been filed and a decree of adjudication had been entered on the day when the debtor’s petition was filed.
(m)“Railroad corporation” construed. The term “railroad corporation” as used in this amendatory section means any common carrier by railroad engaged in the transportation of persons or property in interstate commerce, except a street, a suburban, or interurban electric railway which is not operated as a part of a general railroad system of transportation or which does not derive more than 50 per centum of its operating revenues from the transportation of freight in standard steam railroad freight equipment. Wherever used in this section the term “person” shall include an individual, corporation, partnership, association, joint-stock company, unincorporated organization, or a government or political subdivision thereof. 923
(n)In proceedings under this section, claims for personal injuriesClaims for personal injuries to employees. to employees of a railroad corporation, claims of personal representatives of deceased employees of a railroad corporation, arising under State or Federal laws, and claims now or hereafter payable by sureties upon supersedeas, appeal, attachment, or garnishment bond's executed by sureties without security for and in any action brought against such railroad corporation or trustee appointed pursuant to this section, shall be preferred against and paid out of the assets of such railroad corporation as operating expenses of such railroad. No judge or trustee acting under this Act shall change the wagesWages and working conditions.Vol. 48, p. 1195. or working conditions of railroad employees except in the manner prescribed in the Railway Labor Act, as amended June 21, 1934, or as it may be hereafter amended. No reorganization effected under this Act and no order of the court or Commission in connection therewith shall relieve any carrier from the obligation of any final judgment of any Federal or State court rendered prior to January 1, 1929, against such carrier or against one of its predecessors in title, requiring the maintenance of offices, shops, and roundhouses at any place, where such judgment was rendered on account of the making of a valid contract or contracts by such carrier or one of its predecessors in title.
(o)The trustee or trustees, from time to time, shall determineReorganization plans.Abandonment or sale of portions. what lines or portions of lines of railroad and what other property of the debtor, if any, should be abandoned or sold during the pendency of the proceedings in the interest of the debtor’s estate and of ultimate reorganization but without unduly or adversely affecting the public interest, and shall present to the judge petitions, in which other parties in interest may join, for authority to abandon or to sell any such property; and upon order of the judge made after a hearing pursuant to such reasonable notice by publication or otherwise as the judge may direct to parties in interest, authorizing any such abandonment or sale, but only with the approval andApproval, etc., necessary.Vol. 41, p. 456; [U. S. C., p. 2238](/us/usc/p2238). authorization of the Commission when required by the Interstate Commerce Act as amended February 28, 1920, or as it may be hereafter amended, the trustee or trustees shall take all steps and carry out all proceedings necessary for the consummation of any such abandonment or sale in accordance with the order of the judge. Any such order of the judge shall be a final order for the purposes of appeal. The judge may order and decree any sale of property, whether or not incident to an abandonment, under this subsection at public or private sale and subject to or free from liens. TheUse of proceeds from property sales. proceeds derived from any such sales shall be received by the trustee or trustees subject, in case the property was sold free from lien, to any liens thereon at the time of sale, and shall be applied or disposed of in such manner as the judge by further order shall direct. The expense of such sale shall be borne in such manner as the judge may determine to be equitable. The judge may order the trustee or trustees of the debtor to deposit such proceeds with any mortgage trustee entitled thereto, to be applied in payment of all or part of such mortgage.
(p)It shall be unlawful for any person, during the pendency ofProxies. proceedings under this section or of receivership proceedings against a railroad corporation in any State or Federal court,
(a)to solicit,Soliciting, use, etc. or permit the use of his name to solicit., from any creditor or shareholder of any railroad corporation by or against whom such proceedings have been instituted, any proxy or authorization to represent. any such creditor or shareholder in such proceedings or in any matters relating to such proceedings, or to vote on his behalf for or 924against, or to consent to or reject, any plan of reorganization proposed in connection with such proceedings; or
(b)to use, employ, or act under or pursuant to any such proxy or authorization from any such creditor or shareholder which has been solicited or obtained prior to the institution of such proceedings; or
(c)to solicit the deposit by any such creditor, or shareholder, of his claim against or interest in such railroad corporation, or any instrument evidencing the same, under any agreement authorizing anyone other than such depositor to represent such depositor in such proceedings or in any matters relating to such proceedings, including any matters relating to the deposited security or claim; or to vote such claim or interest or to consent to or reject any such plan of reorganization; or
(d)to use, employ, or act under or pursuant to any such agreement with such depositor which has been solicited or obtained prior to the institution of such proceedings; unless and until, upon proper application by any person proposing to make such solicitation or to use, employ, or act under or pursuant to such proxies, authorizations, or deposit agreements, and after consideration of the terms and conditions (including provisions governing the compensation and expenses to be received by the applicant, its agents and attorneys, for their services) upon which it is proposed to make such solicitation or to use, employ, or act under or pursuant to such proxies, authorizations, or deposit agreements, the Commission after hearing by order authorizes such solicitation, use, employment, or *Proviso*.Personal interest only.action: *Provided, however*, That nothing contained in this section shall be applicable to or construed to prohibit any person, when not part of an organized effort, from acting in his own interest, and not for the interest of any other, through a representative or otherwise, or from authorizing a representative to act for him in any of the Cooperative actions.foregoing matters, or to prohibit groups of not more than twenty-five bona fide holders of securities or claims or groups of mutual institutions from acting together for their own interests and not for others through representatives or otherwise or from authorizing representatives of such groups to act for them in respect to any of the foregoing matters. The Commission shall make such order only if it finds that the terms and conditions upon which such solicitation, use, employment or action is proposed are reasonable, fair, and in the public interest, and conform to such rules and regulations as the Rules to be prescribed.Commission may provide. The Commission shall have the power to make such rules and regulations respecting such solicitation, use, employment, or action and with respect to the terms and the provisions of such proxies, authorizations, and deposit agreements, and with respect to such other matters in connection with the administration of this subsection as it deems necessary or desirable to promote the public interest, and to insure proper practices in the representation of creditors and stockholders through the use of such proxies, authorizations, or deposit agreements and in the solicitation thereof. It shall be unlawful for any person to solicit any such proxy, authorization, or the deposit of any such claim or interest or to use, employ, or act under or pursuant to any such proxy, authorization, or deposit agreement which has been solicited or obtained prior to the institution of such proceedings in violation of the rules and regulations so prescribed. Form, etc., of applications.Every application for authority shall be made in such form and contain such matters as the Commission may prescribe. Every such application shall be made under oath, signed by, or on behalf of, the applicant by a duly authorized agent having knowledge of the matters Right to modify, etc., orders.therein set forth. The Commission may modify any order authorizing such solicitation, use, employment, or action by a sup925plemental order, but no such modification shall invalidate action previously taken, or rights or obligations which have previously arisen, in conformity with the Commission’s prior order or orders authorizing such solicitation. use, employment, or action. The Commission may, in its discretion, make such investigationsInvestigating violations. as it deems necessary to determine whether any person has violated or is about to violate any provision of this subsection
(p)or any rule or regulation thereunder, and may require or permit any person to file with it a statement in writing, under oath, or otherwise as the Commission shall determine, as to all the facts and circumstances concerning the matter to be investigated. The Commission isPublication of. authorized, in its discretion, to publish information concerning any such violations, and to investigate any such facts, conditions, practices, or matters as it may deem necessary or proper to aid in the enforcement of the provisions of this subsection (p), in the prescribing ofRules to be prescribed. rules and regulations thereunder, or in securing information to serve as a basis for recommending further legislation concerning the matters to which this subsection relates. Any person who willfully violates any provision of thisPunishment for violations. subsection, or any rule or regulation made thereunder the violation of which is made unlawful, or any person who willfully and knowingly makes, or causes to be made, any statement in any application, report, or document required to be filed hereunder or under any rule or regulation authorized hereby, which statement is false or misleading with respect to any material fact, shall be guilty of a misdemeanor, and on conviction in any United States court having jurisdiction, shall be punished by a fine of not less than $1,000 nor more than $10,000 or by imprisonment for not less than one year nor more than three years, or by both such fine and imprisonment, in the discretion of the court; but no person shall be subject to imprisonment under this section for the violation of any rule or regulation if he proves that he had no knowledge of such rule or regulation. The provisions of this subsection
(p)shall not be applicable toProvisions not retroactive. any person or committee which has begun to solicit, obtain, or use proxies, authorizations, or deposit agreements prior to the effective date of this amendatory section in connection with proceedings under this section as in force prior to such effective date or receivership proceedings against a railroad then pending in any State or Federal court, unless such person or committee makes application to the Commission and receives authority to act as in this subsection provided, in which event the provisions of this subsection
(p)shall be applicable to such person or committee, but suchTerms not to Invalidate previous action. authorization shall not be upon terms which shall invalidate any action theretofore taken, or any rights or obligations which have theretofore arisen: *Provided*, That with respect to committees which are*Proviso*.Court review. not subject to this subsection
(p)the judge shall scrutinize and may disregard any limitations or provisions of any deposit agreements, committee, or other authorizations affecting any creditor or stockholder acting under this section and may enforce an accounting thereunder or restrain the exercise of any power which he finds to be unfair or not consistent with public policy, including the collection of unreasonable amounts for compensation and expenses.
(q)The provisions of section 12 of the Interstate Commerce Act,Powers of Commission extended.Vol. 25, p. 858; Vol. 20, p. 743; Vol. 41. p. 484.[U. S. C., p. 2221](/us/usc/p2221). as amended March 2, 1889, February 10, 1891, and February 28, 1920, shall be applicable to enable the Commission to perform its duties under this section and the provisions of such section shall apply to the debtor, any subsidiary or affiliated company, or any other person as herein defined. 926
(r)Saving clause. If any provision of this amendatory section, or the application thereof to any person or circumstances, is held invalid, the remainder of this amendatory section, or application of such provision to other persons or circumstances, shall not be affected thereby.
(s)Pending proceedings governed by provisions of this Act.Vol. 47, p. 1474; [U. S. C., p. 337](/us/usc/337).*Proviso*.Prior action not invalidated. Proceedings pending under this section (Act of March 3, 1933) on the effective date of this amendatory section shall continue under and be governed by, the provisions of this amendatory section: *Provided*, That the enactment of this amendatory section shall not invalidate any action taken before its effective date pursuant to this section as it existed prior to the enactment of this amendatory section. " Approved, August 27, 1935. To authorize the Secretary of the Treasury to acquire a site for the erection of a post-office building at Columbus, Mississippi. 1935-08-27 49 Stat. 926 775 Chapter 74 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-01-07 public [CHAPTER 775.] AN ACT To authorize the Secretary of the Treasury to acquire a site for the erection of a post-office building at Columbus, Mississippi. August 27, 1935.[[H. R. 8977](/us/bill/74/hr/8977).][[Public, No. 382](/us/pl/74/382).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Columbus, Miss.Acquisition of site for public building at. That the Secretary of the Treasury, subject to the availability of appropriated moneys therefor, is authorized, in his discretion, to acquire a new site in the city of Columbus, county of Lowndes, State of Mississippi, and to construct a post-office building thereon. Sec. 2. Lease authorized. That the Secretary of the Treasury may acquire such site by lease rather than by purchase, if in his discretion it is deemed desirable that the site should be located in section 16, fractional township 18, south of range 18, west of the basis meridian of Madison County, Alabama, in which section the said city of Columbus is in large part situated: in which case the Secretary of the Treasury may lease such site from the mayor and city council of the city of Columbus, at such rental as he deems reasonable, for a term of ninety-nine years from the 1st day of August 1921, renewable forever, as provided by Acts of the Legislature of Mississippi approved December 13, 1830 (Laws of Mississippi, 1830, ch. II), and March 20, 1914 (Laws of Mississippi, 1914, ch. 462), or may obtain by assignment, by condemnation, or otherwise, an existing lease, for the same term, of such site. Sec. 3. Appropriation authorized; limitation waived.Vol. 47, p. 412; [U. S. C., p. 1771](/us/usc/p1771). There is authorized to be appropriated, without regard to the limitations of section 322 of part II of the Legislative Appropriation Act for the fiscal year ending June 30, 1933, approved June 30, 1932, such amounts as may be necessary to pay the installments of rent provided for in a lease obtained pursuant to the authority *Proviso*.Payment.contained in section 2 of this Act: *Provided*, That the first annual installment of rent and the original purchase price, if any, of such lease shall be paid out of any funds made available for the acquisition of the site and the construction of a building thereon. Approved, August 27, 1935. To amend the joint resolution entitled “Joint resolution for the relief of Porto Rico”, approved December 21, 1928, to permit an adjudication with respect to liens of the United States arising by virtue of loans under such joint resolution. 1935-08-27 49 Stat. 926 776 Chapter 74 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-01-07 public [CHAPTER 776.] JOINT RESOLUTION To amend the joint resolution entitled “Joint resolution for the relief of Porto Rico”, approved December 21, 1928, to permit an adjudication with respect to liens of the United States arising by virtue of loans under such joint resolution. August 27, 1935.[[H. J. Res. 129](/us/bill/74/hjres/129).][[Pub. Res., No. 59](/us/bill/74/pubres/59).] Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, Puerto Rican relief.Vol. 45, p. 1067, amended. That the joint resolution entitled “Joint resolution for the relief of Porto Rico”, approved December 21, 1928, is hereby amended by adding at the end thereof a new section reading as follows: 927 " “Sec. 7.
(a)Upon the conditions herein prescribed for theMortgage fore-closures, etc.Consent to name Government party defendant in suits involving, granted. protection of the United States, the consent of the United States is given, to be named a party in any suit which is now pending or which may hereafter be brought in any of the insular courts of the island of Puerto Rico by the Federal Land Bank of Baltimore or the Federal Farm Mortgage Corporation for the foreclosure of any mortgage or other lien upon real estate for the purpose of any mortgage or other lien upon real estate for the purpose of11So in original. securing an adjudication touching any junior mortgage or other junior lien the United States may have or claim by virtue of loans made pursuant to the provisions of this joint resolution. Service upon the United StatesService of process upon United States. shall be made by serving the process of the court with a copy of the bill of complaint upon the United States attorney for the district or division in which the suit has been or may be brought and by sending copies of the process and bill, by registered mail, to the Attorney General of the United States at Washington, District of Columbia. The United States shall have sixty days after service as above provided, or such further time as the court may allow, within which to appear and answer, plead, or demur. Any such suit broughtRemoval of suits from insular courts. against the United States in any insular court may be removed by the United States to the United States District Court for the district in which the suit may be pending. The removal shall be effected in the[U. S. C., p. 1234](/us/usc/p1234). manner prescribed by section 29 of the Judicial Code (U. S. C., title 28, sec. 72): *Provided*, That the petition for removal may be filed*Provisos*.Procedure. at any time before the expiration of thirty days after the time herein or by the court allowed by the United States to answer, and no removal bond shall be required. The court to which the cause is removed may, before judgment, remand it to the insular court if it shall appear that there is no real dispute respecting the rights of the United States, or all the other parties shall concede of record the claims of the United States. Except as herein otherwiseJudicial sales; effect of. provided, a judicial sale made in pursuance of a judgment in such a suit shall have the same effect respecting the discharge of the property from liens and encumbrances held by the United States as may be provided with respect to such matters by the law of Puerto Rico and in which island the land is situated: *Provided*, That a sale toSatisfying lien inferior to that of Government.Exception. satisfy a lien inferior to one of the United States shall be made subject to and without disturbing the lien of the United States, unless the United States, by its attorneys, consents that the property may be sold free of its mortgage or lien and the proceeds divided as the parties may be entitled. In any case where the debt to the UnitedForeclosure of Government’s liens, etc. States is due, the United States may ask, by way of affirmative relief, for the foreclosure of its own lien or mortgage and in any case where the property is sold to satisfy a first mortgage or first lien held by the United States, the United States may bid at the sale such sum not exceeding the amount of its claim with expenses of sale, as may be directed by the chief of the department, bureau, or other agency of the Government which has charge of the administration of the laws in respect of which the claim of the United States arises. No judgment for costs or other money judgment shall be rendered against the United States in any suit or proceeding which may be instituted under the provisions of this section. Nor shall the United StatesNo Federal liability for costs. be or become liable for the payment of the costs of any such suit or proceeding or any part thereof: *Provided*, That if the FederalSums over certain investments to be paid to Hurricane Relief Commission. Land Bank of Baltimore or the Federal Farm Mortgage Corporation acquire the property involved in the proceedings in which the United States was made a party under the provisions of this section, any amount the Federal Laud Bank of Baltimore or the Federal Farm Mortgage Corporation may receive upon the ultimate disposition of the property, exceeding the amount of its investment, but 928not to exceed the amount of the Commission’s lien, shall be paid by the said bank or the said corporation to the Puerto Rican Hurricane Relief Commission. “(b) Priorities arising out of reamortization agreements. The Hurricane Relief Commission is hereby authorized to waive any priorities it may have or claim over liens in favor of the Federal Land Bank of Baltimore, such priorities arising out of reamortization agreements entered into between the Federal Land Bank of Baltimore and its borrowers who are also indebted to the Commission. “(c) Method of extinguishing liens without Judicial proceedings. If the Federal Land Bank of Baltimore or the Federal Farm Mortgage Corporation acquires or deems it necessary to acquire by foreclosure proceedings any real or personal property in Puerto Rico by virtue of a lien upon the said referred property duly filed of record in the jurisdiction in which the same is located, and a junior lien in favor of the United States attached to such property by virtue of loans made pursuant to the provisions of this joint resolution the said banking institution may make a written request to the Puerto Rican Hurricane Relief Commission to have the same extinguished. If after appropriate investigation, it appears to such Commission that the proceeds from the sale of the property would be insufficient to satisfy in whole or in part, the lien of the United States, or that the claim of the United States has been satisfied, or by lapse of time or otherwise has become unenforceable, such Issue of certificate of release.Commission shall so report to the Comptroller General, who thereupon may authorize it to issue a certificate of release, which shall *Proviso*.Any amount over investment to be paid to Hurricane Relief Commission.operate to release the property from such lien: *Provided*, That any amount that may be realized by the Federal Land Bank of Baltimore or the Federal Farm Mortgage Corporation in the ultimate sale of this property, over and above its investment, but not to exceed the amount of the Commission’s lien, shall be paid by the said bank or the said Corporation to the Puerto Rican Hurricane Relief Commission. “(d) Terms defined.“Puerto Rican Hurricane Relief Commission”; “Hurricane Relief Commission”; “Commission”. For the purposes of this section the terms ‘Puerto Rican Hurricane Relief Commission ’, ‘Hurricane Relief Commission and ‘Commission’ shall be deemed to refer to the department, bureau, or other agency of the Government having charge of the administration of this resolution.” " Approved, August 27, 1935. To amend a joint resolution entitled “Joint resolution for the relief of Porto Rico”, approved December 21, 1928, as amended by the Second Deficiency Act, fiscal year 1929, approved March 4, 1929. 1935-08-27 49 Stat. 928 777 Chapter 74 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-01-07 public [CHAPTER 777.] JOINT RESOLUTION To amend a joint resolution entitled “Joint resolution for the relief of Porto Rico”, approved December 21, 1928, as amended by the Second Deficiency Act, fiscal year 1929, approved March 4, 1929. August 27, 1935.[[H. J. Res. 257](/us/bill/74/hjres/257).][[Pub. Res., No. 60](/us/bill/74/pubres/60).] Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, Puerto Rican relief.Vol. 45, p. 1067; Vol. 45, p. 1627, amended. That in carrying out the provisions of the joint resolution entitled “Joint resolution for the relief of Porto Rico”, approved December 21, 1928, as amended by the Second Deficiency Act, fiscal year 1929, approved Puerto Rican Hurricane Relief Commission, etc., authorized to make adjustments of its loans.March 4, 1929, the Puerto Rican Hurricane Relief Commission or its successor is authorized, when in the judgment of the Commission or its successor it is consistent with the best interests of the United State 11So in original., to make, in the name of the United States or in its own name for and on behalf of the United States, compositions and adjustments in any loans heretofore made by it upon the security of land or other property, real or personal, in the island of Puerto Rico, either by reduction in the rate of interest or in the indebtedness or929by extension or other adjustment of the time for any payments of principal or interest or other indebtedness, or otherwise: *Provided*,*Proviso*.Fees. That it shall be unlawful for any person to charge a fee for the purpose of preparing or assisting in the preparation of any papers of an applicant for the composition or adjustment of a loan under the provisions of this Act, and any person receiving or agreeing to receive a fee for any such purpose in violation of this proviso shall be guilty of a misdemeanor, and shall upon conviction thereof be punished by a fine not exceeding $1,000 or by imprisonment not exceeding six months, or both. Sec. 2. That the Commission or its successor is further authorizedAcquisition and disposal of land when fore-closure necessary. to acquire title, either by voluntary conveyance as the result of a composition or an agreement with a debtor or in satisfaction of judgments or degrees11So in original. of foreclosure of mortgages or at sales under such judgments or decrees, to parcels of land or other property, real or personal, in the name of the United States or in its own name for and on behalf of the United States and also to take possession and occupy and hold and administer and to lease, sell, or otherwise dispose of as in the judgment of the Commission or its successor is consistent with the best interests of the United States any land or other property, real or personal, so acquired by it; and in the exercise of these powers may execute deeds or other necessary or appropriate instruments in the name of the United States or in its own name for and on behalf of the United States. Sec. 3. The Commission or its successor is further authorized, inLiens may be subordinated to those designated. any case when in the judgment of the Commission or its successor it is consistent with the best interests of the United States, to subordinate the lien securing any loan heretofore made by the Commission to the lien securing any loan or loans hereafter made by the Federal Land Bank of Baltimore, or by the Land Bank Commissioner on behalf of the Federal Farm Mortgage Corporation. Approved, August 27, 1935. Authorizing the Federal Trade Commission to make an investigation with respect to agricultural income and the financial and economic condition of agricultural producers generally. 1935-08-27 49 Stat. 929 778 Chapter 74 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-01-07 public [CHAPTER 778.] JOINT RESOLUTION Authorizing the Federal Trade Commission to make an investigation with respect to agricultural income and the financial and economic condition of agricultural producers generally. August 27, 1935.[[S. J. Res. 9](/us/bill/74/sjres/9).][[Pub. Res., No. 61](/us/bill/74/pubres/61).] Whereas the decline in agricultural income and the unsatisfactoryAgricultural income, etc., investigation.Preamble. condition of agriculture and of those engaged therein is a matter of increasing concern to the Congress, and affects the general welfare of the Nation and its citizens; and Whereas in recent years the agricultural income has decreased while the earnings and profits of concerns processing or dealing in certain lines of farm products have increased or declined only moderately; and Whereas there has developed an increasingly large proportionate spread between the prices received by the farmer for his products and the prices paid therefor by the consumer; and Whereas, according to the latest statistics of income published by the Bureau of Internal Revenue, twenty-two large corporations reported making over 45 per centum of the gross sales of all corporations engaged in the processing and manufacture of food products in 1931, and one hundred and two large corporations reported making GO per centum of the gross sales of such corporations; and 930 Whereas it is charged that monopolistic, oppressive, and unfair methods and practices of various middlemen, warehousemen, processors, manufacturers, packers, and handlers are in whole or in part responsible for the conditions above described, and that wasteful and uneconomic methods have contributed toward bringing about these conditions; and Whereas it is charged that said various middlemen, warehousemen, processors, manufacturers, packers, handlers, and others have violated the various antitrust laws of the United States, that they lave burdened, restricted and restrained interstate and foreign commerce and adversely affected the volume and price of farm products moving in intrastate and foreign commerce; and Whereas it is charged that many lines of processing, warehousing, and/or dealing in farm products are so dominated by a handful of large concerns as to impede the free flow of interstate and foreign commerce to the detriment of both the farmer and the consumer; and Whereas it is charged that through the payment of high and excessive salaries and other devices said middlemen, warehousemen, processors, manufacturers, packers, and others escape just taxation by the United States, that said salaries tend unduly to diminish the tax revenues of the United States and tend to burden and restrain interstate and foreign commerce in farm products, and to divert and conceal the earnings and profits of the concerns paying said salaries, and that by various devices those receiving said salaries escape their just share of Federal taxation; and Whereas it is believed that the Congress should consider whether new legislation should be enacted or existing legislation amended on any of the subjects hereinbefore described and in aid thereof should be informed on all of said subjects: Therefore be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, Federal Trade Commission to investigate and report upon designated subjects.*Post*, pp. 1256, 1566.Extent of recent agricultural income decline. That the Federal Trade Commission is hereby authorized and directed to investigate and report, at the next session of Congress— First.
(1)The extent of the decline in agricultural income in recent years, including the amount and percentage of such decline;
(2)The extent of the increases or decreases in recent years in the income of the principal corporations engaged in the sale, manufacturing, warehousing and/or processing of the principal farm products, and of the other principal sellers, manufacturers, warehousemen, and/or processors of the principal farm products, as compared with the decline in agricultural income, including the amount and percentage of such changes; and
(3)The proportion of total consumer cost of representative products manufactured or processed from the principal farm products which is represented by the proceeds received by
(a)the farmer,
(b)the manufacturers, processors, and warehousemen, and
(c)the distributors and such principal farm products and such representative products manufactured therefrom. Second. Financial position of principal marketing, etc., corporations. The financial position of the principal corporations engaged in the manufacturing, processing warehousing, distribution, and marketing of the representative major products manufactured from such principal farm products, including—
(1)The capitalization and assets of such corporations and the means and sources of the growth of such capitalization and assets;
(2)The investment, costs, profits, and rates of return of such corporations;
(3)The salaries of the officers of such companies; and 931
(4)The extent to which said corporations avoid income taxes, if at all, and the extent to which officers receiving such salaries paid income taxes thereon. Third. The extent of concentration of control and of monopolyExtent of control and monopoly in processing, etc., farm products. in the manufacturing, processing, warehousing, distribution, and marketing of representative major farm products which is maintained or has been obtained by any corporation or other organization, including—
(1)Methods and devices used by such corporations for obtaining and maintaining their control or monopoly of the manufacturing, marketing, processing, warehousing, and distribution of such commodities, and the proportion of any such major farm commodity handled by each of the large units involved; and
(2)The extent to which fraudulent, dishonest, unfair, and injurious methods are employed in the grading, warehousing, and transportation of such farm products, including combinations, monopolies, price fixing, and manipulation of prices on the commodity exchanges. Fourth. The extent to which the cooperative agencies have enteredExtent of cooperative agencies. into the processing, warehousing, and marketing of representative major farm products and the general effects of such cooperative agencies upon the producer and consumer. Fifth. The extent to which other countries have adopted orStudies of foreign policies. promoted processing, warehousing, and marketing agencies of a public, quasi-public, or cooperative sort for the simplification and cheapening of the processing, warehousing, and marketing of agricultural products, and other administrative agencies which may have been set up for the protection of the farmer-producer and the consumer. Sixth. Any conclusions and/or recommendations with regard toRecommendations. increasing the income of farm producers or other recommendations with regard to the improvement of the economic position of farmers or consumers growing out of the inquiry. Sec. 2. The Department of Agriculture, the National RecoveryAgencies to cooperate. Administration, the Department of Justice, and other agencies of the Government are directed to cooperate with the Commission in such inquiry to the fullest extent possible. Sec. 3. For the purposes of this resolution the Federal TradePower to obtain data, etc. Commission shall have the same right to obtain data and to inspect income-tax returns as the Committee on Ways and Means of the House of Representatives or the Committee on Finance of the Senate, and to submit any relevant or useful information thus obtained to the Congress or to either House thereof. Sec. 4. For the purpose of carrying out this resolution theJurisdiction extended.Vol. 38, p. 717.[U. S. C., p. 514](/us/usc/p514). Federal Trade Commission, the Attorney General, and the courts of the United States shall have and may exercise all of the powers and jurisdiction severally conferred upon them by the Act entitled “An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes”, approved September 28, 1914. Sec. 5. There is hereby authorized to be appropriated, out of anySum authorized for salaries and expenses.*Post*, p. 1257. money in the Treasury not otherwise appropriated, the sum of $150,000 which shall be available for expenditure, as the Federal Trade Commission may direct, for expenses and all necessary disbursements, including salaries, in carrying out this resolution and prosecuting litigation necessary in aid of the powers conferred hereunder. Sec. 6. The Federal Trade Commission is directed to present anPreliminary and final reports. interim report to the Congress on January 1, 1936, describing the progress made and the status of its work hereunder, and a final report with recommendations for legislation not later than July 1, 1936. Approved, August 27, 1935. Granting the consent of Congress to the States of New York, New Jersey, and Connecticut to enter into a compact for the creation of the Interstate Sanitation District and the establishment of the Interstate Sanitation Commission. 1935-08-27 49 Stat. 932 779 Chapter 74 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-01-07 public 932 [CHAPTER 779.] JOINT RESOLUTION Granting the consent of Congress to the States of New York, New Jersey, and Connecticut to enter into a compact for the creation of the Interstate Sanitation District and the establishment of the Interstate Sanitation Commission. August 27, 1935.[[S. J. Res. 159](/us/bill/74/sjres/159).][[Pub. Res., No. 62](/us/bill/74/pubres/62).] Interstate Sanitation District Preamble.Whereas the State of New York and the State of New Jersey desire to create the Interstate Sanitation District and to establish the Interstate Sanitation Commission, in accordance with the terms of a compact to which by its terms the State of Connecticut is empowered to become a party, which compact is as follows: Tri-State Compact.TRI-STATE COMPACT Whereas the tremendous growth of population and the development of the territory surrounding and adjacent to the Harbor of New York has resulted in recent years in an increasingly serious pollution of the harbor, coastal, and tidal waters in such area and the tributary waters therein; and Whereas such pollution constitutes a grave menace to the health, welfare, and recreational facilities of the people living in such area and is occasioning great economic loss; and Whereas the control of future pollution and the abatement of existing pollution in the waters in such area is of prime importance to the people living in such area and can best be accomplished through the cooperation of the States of New Jersey and New York and Connecticut by and through a joint or common agency: Now, therefore, Agreement by States of New York, New Jersey, and Connecticut. The State of New York and the State of New Jersey and the State of Connecticut do agree and are bound as follows: Article I 1. Abatement of exiting pollution of streams. Each of the signatory States pledges each to the other faithful cooperation in the control of future pollution and agrees to provide for the abatement of existing pollution in the tidal and coastal waters in the adjacent portions of the signatory States defined herein as coming within the district, and consistent with such object, to enact adequate legislation which will enable each of the signatory States to put and maintain the waters thereof in a Public health measures.satisfactory sanitary condition and particularly to protect public health; to render safe such waters as are now used or may later become available for bathing and recreational purposes; to abate and eliminate such pollution as becomes obnoxious or causes a Protection of marine Ute.nuisance; to permit the maintenance of major fish life, shellfish, and marine lite in waters now available or that may by practicable means be made available for the development of such fish, shellfish, or marine life; to prevent oil, grease, or solids from being carried Sludge deposits.on the surface of the water; to prevent the formation of sludge deposits along the shores or in the waterways; and with the fulfillment of these objectives to abate and avoid incurring unecessary 11 So in original. economic loss by safeguarding the rights of the public in its varied legitimate uses of the waters of the district. Article II 1. Interstate Sanitation District. To that end they do agree that there shall be created, and they do hereby create, a district, to be known as the “Interstate Sanitation District” (hereinafter referred to as the “district”), which shall embrace the territory described as follows: 933 All the coastal, estuarial, and tidal waters within or covering Jurisdiction.portions of the signatory States as follows:
(a)In Connecticut, Long Island Sound and estuaries and tidal waters thereof between the easterly side of New Haven Harbor at Morgan Point and the Connecticut-New York State boundary, and the Housatonic River up to the northerly boundary lines or the towns of Stratford and Milford.
(b)In New York, all of the tidal waters of Greater New York City; including Kill Van Kull and Arthur Kill, Long Island Sound and the estuaries and tidal waters thereof between the New York City line and the New York-Connecticut State boundary and between the New York City line and the easterly side of Port Jefferson Harbor; the Atlantic Ocean and the estuaries and tidal waters thereof between the New York City line and the easterly side of Fire Island Inlet; and the Hudson River and estuaries and tidal waters thereof between the New York-New Jersey State boundary and the northerly line of Rockland County on the westerly side and between the northerly line of New York City and the northerly line of Westchester County on the easterly side of the river.
(c)In New Jersey, the Hudson River and New York Upper Bay, and estuaries and tidal waters thereof, between the New York-New Jersey boundary and Constable Point on Constable Hook; the Kill Van Kull and Arthur Kill to the mouths of the rivers entering into the Kills; Newark Bay and the estuaries thereof up to the mouth of the Passaic River, and up to the mouth of the Hackensack River; Raritan Bay together with the Raritan River up to the Victory Bridge on said river between Perth Amboy and South Amboy, together with the Cheesequake Creek up to the New York and Long Branch Railroad bridge on said creek at Morgan; together with the Matawan Creek up to the New York and Long Branch Railroad bridge on said creek at Matawan; Sandy Hook Bay; together with the Shrewsbury River up to the passenger railroad bridge between Navesink Light and Highland Beach on said river. Article III 1. There is hereby created the Interstate Sanitation Commission (hereinafter referred to as the “commission Interstate Sanitation Commission created.”) which shall be a body corporate and politic, having the powers, duties, and Powers, etc.jurisdiction herein enumerated and such other and additional powers as shall be conferred upon it by the act or acts of a signatory State concurred in by the others and by the Act or Acts of Congress when necessary. Article IV 1. The commission shall consist of five commissioners from eachCommissioners, number, selection, etc. State, each of whom shall be a resident voter of the State from which he is appointed. The commissioners shall be chosen in the manner and for the terms provided by law of the State from which they shall be appointed, and each commissioner may be removed or suspended from office as provided by the law of the State from which he shall be appointed. The commissioners shall serve without compensation but shall be paid their actual expenses incurred incident to the performance of their duties. 934 Article V 1. Officers, etc., of commission. Corporate authority. The commission shall elect from its number a chairman and vice chairman and shall appoint and at its pleasure remove or discharge such officers and legal, clerical, expert, and other assistants as may be required to carry the provisions of this compact into effect, and shall fix and determine their duties, qualifications, and compensations. It shall adopt a seal and suitable bylaws and shall promulgate rules and regulations for its management and control. It may maintain one or more offices for the transaction of its business and may meet at any time or place within the signatory States. A majority of the members from each State shall constitute a quorum for the transaction of business, the exercise of any power’s, or the performance of any duties, but no action of the commission shall be binding unless at least three of the members from each State shall vote in favor thereof. Records, reports, etc.The commission shall keep accurate accounts of all receipts and disbursements and shall make an annual report to the governor and the legislature of each State setting forth in detail the operations and transactions conducted by it pursuant to this compact, and shall make recommendations for any legislative action deemed by it advisable, including amendments to the statutes of the signatory States which may be necessary to carry out the intent and purpose of this compact, and changes in the district which concentration of population or other cause may require. The commission shall not incur any obligations for salaries or office or other administrative expenses prior to the making of appropriations adequate to meet the same, nor shall the commission pledge the credit of any of the signatory States except Auditing accounts.by and with the authority of the legislatures thereof. Each State reserves the right to provide hereafter by law for the examination and audit of the accounts of the commission by its comptroller or other official. The commissioners shall meet and organize within ten days after the effective date of this compact. Article VI 1. Purity standards. It is recognized by the signatory States that, where tidal waters are used for such varied purposes as bathing, navigation, shellfish culture, the development of fish life, and the disposal of wastes, no single standard of purity is practicable in all parts of the district. In order to attain the objects of this compact, the commission, after proper study and after conducting public hearings upon due notice, shall group the designated waters of the district into classes. Where local conditions shall have changed in the future to such an extent that changes in classification become necessary, the commission may, after conducting public hearings upon due notice, adopt such changes. Classifications.Two general classifications shall be used:
(1)Class A, in which the designated water areas are expected to be used primarily for recreational purposes, shellfish culture, or the development of fish life;
(2)Class B, in which the designated water areas are not expected to be used primarily for recreational purposes, shellfish culture, or the development of fish life. 935 Article VII 1. It is agreed between the signatory States that no sewage Discharge of sewage, etc.or other polluting matters shall be discharged or permitted to flow into, or be placed in, or permitted to fall or move into the tidal waters of the district, except under the following conditions and restrictions:
(1)All sewage discharged or permitted to flow into class A waters of the district shall first have been so treated as—
(a)to remove all floating solids and at least 60 per centum of the suspended solids; and
(b)to effect a reduction of organisms of the B. coli group (intestinal bacilli) so that the probable number of such organisms shall not exceed one per cubic centimeter in more than 50 per centum of the samples of sewage effluent tested by the partially confirmed test: *Provided, however*, That in the case of discharge into waters used primarily for bathing, this bacterial standard need not be required except during the bathing season; and
(c)to effect a reduction in the oxygen demand of the sewage effluent sufficient to maintain an average dissolved-oxygen content in the tidal waters of the district and in the general vicinity of the point of discharge of the sewage into those waters, at a depth of about five feet below the surface, of not less than 50 per centum saturation during any week of the year.
(2)All sewage discharged or permitted to flow into class B waters of the district shall first have been so treated as—
(a)to remove all floating solids and at least 10 per centum of the suspended solids, or such additional percentage as may by reason of local conditions be necessary to avoid the formation of sludge deposits in the class B waters of the district; and
(b)to effect a reduction in the oxygen demand of the sewage effluent sufficient to maintain an average dissolved-oxygen content in the tidal waters of the district and in the general vicinity of the point of discharge of the sewage into those waters, at a depth of about five feet below the surface, of not less than 30 per centum saturation during any week of the year. Article VIII 1. Each of the signatory States agrees that, insofar as waters Tributary streams.within its jurisdiction may flow into any portion of the district, all sewage discharged or permited to flow into any stream tributary to the tidal waters of the district shall be treated to that extent, if any, which may be necessary to maintain such tributary immediately above its confluence with the tidal waters of the district in a sanitary condition at least equal to the classification requirements determined by the commission for the tidal waters of the district into which it discharges. The waters of the Hudson River, immediately above the mouth of Sparkhill Creek on the westerly side and the New York-New Jersey boundary extended on the easterly side of the river, shall be maintained in a sanitary condition at ebb tide at least equal to the sanitary condition prevailing in the waters of the river immediately below said boundary at flood tide. Article IX 1. Nothing in this compact shall be construed to repeal or prevent Existing laws, etc., not affected.the enactment of any legislation or the enforcement of any936 requirement by any signatory State imposing any additional conditions and restrictions to further lessen or prevent the pollution of waters within its jurisdiction. Article X 1. Commission’s orders concerning sewage treatment. Subject to the provisions of this compact, the commission, as soon as may be after its organization, after an investigation and after conducting public hearings upon due notice, shall by order prescribe the reasonable date on or before which each municipality or other entity discharging sewage into the designated waters within the district shall be treating such sewage in accordance with the standards specified in this compact. Such order may prescribe that certain specific progress shall be made at certain definite times prior to the final date fixed in such order. It is the desire of all parties to accomplish the objects herein set forth with the least possible injury to investments which have already been made in the construction of sewage-treatment plants within the district, and where changes or additions to such plants would be necessary to conform to the standards herein adopted, a reasonable time to effect such changes or additions may, in the discretion of the commission, be granted. Article XI 1. Duties and obligations of signatory States.Each of the signatory States agrees that it will prohibit the pollution of the said waters within the district in accordance with the several articles of this compact, and that it will enact suitable and adequate legislation which will accomplish effectively the objects of this compact and which will enable its officers, departments, boards, and agents to accomplish satisfactorily the obligations and duties assumed by the State under the terms of this compact; and it is further agreed that the courts of the several States shall have jurisdicion 11 So In original. to enforce as against any person, corporation, municipality, or other entity or any employee, department, or subdivision of the respective signatory States any and all provisions of this compact. Investigations authorized.The commission shall have authority to investigate and determine if the requirements of the compact and/or the orders of the commission pursuant thereto are complied with and if satisfactory progress has not been made, to bring action in its own name in the proper court or courts to compel the enforcement of any and all of the provisions of this compact, and/or the orders of the commission pursuant thereto. Article XII 1. Cooperation with States. In order that future pollution be controlled and existing pollution be abated with the greatest possible economy and efficiency, the commission shall cooperate and advise with the respective State and district authorities having jurisdiction over stream pollution, with a view to coordinating their activities and securing the most satisfactory results at lower cost. For such purpose the commission may prepare a general plan of the most practicable and economical method of securing conformity with the standards herein set forth, having in view the future growth and development of the district. Such plan when completed shall be submitted to the Governor and the Legislature of each State and to the State agency or agencies or district agencies in charge of sewage problems. 937 The provisions of this act shall not affect the discharge from Passaic Valley system not affected.the outfall pipes of the Passaic Valley sewerage system into the waters of New York Harbor: *Provided, however*, That said discharge *Proviso*.Conformity with existing stipulation.shall be in accordance with the terms and provisions of the stipulation entered into on April fourteenth, one thousand nine hundred and ten, between the United States of America and Passaic Valley Sewerage Commissioners. Article XIII 1 .Terms used in this compact are defined as follows:Definitions. “District” means the area more particularly described “District.”in article II of this compact. “Commission” means the Interstate Sanitation Commission. “Commission.” “Municipality” means any city, incorporated village, borough, “Municipality.” county, town, township, district, or any municipality governed by an improvement commission, any joint sewer commission, or any other subdivision of any one of the signatory States located within the district. “Rule or regulation” means any rule or regulation established “Rule or regulation.”by the commission not inconsistent with the Constitution of the United States or of any signatory State, promulgated by the commission touching the abatement of pollution of the waters of the district. “Tidal waters” means all those waters which ebb and flow “Tidal waters.”within the designated district. “Dissolved oxygen” is the gaseous oxygen held in solution by “Dissolved oxygen.” the water at any given time. It is expressed as a percentage of the maximum amount of oxygen that would be required to saturate the water under the existing conditions of temperature and salinity. “Pollution” is any foreign matter which renders waters unfit “Pollution.”to sustain fish life and unsatisfactory for bathing. “Sewage effluent” means the treated sewage discharged from “Sewage effluent.”a treatment plant. “Suspended solids” means those solid particles carried in suspension “Suspended solids.”in the untreated sewage or sewage effluent. “Entity” means any organization or association owning, controlling, “Entity.”or operating a sewerage system or treatment plant within a municipality. Article XIV 1. The signatory States agree to appropriate annually for the Payment of salaries and expenses.salaries and office and other administrative expenses such sum or sums as shall be recommended by the commission and approved by the Governors of the signatory States, the State of New York and the State of New Jersey agreeing each to appropriate 45 per centum thereof, and the State of Connecticut agreeing to appropriate 10 per centum thereof. The State of New York and the State of New Jersey obligate themselves hereunder, however, only to the extent of $15,000 each in any one year, and the State of Connecticut obligates itself hereunder only to the extent of $3,333.34 in any one year. Article XV 1. Should any part of this compact be held to be contrary Separability of provisions.to the constitution of any signatory State or of the United States, all other severable objects of this compact shall continue to be in full force and effect. 938 Article XVI 1. Effective dates. This compact shall become effective as to the State of New Jersey and the State of New York immediately upon the signing thereof by the representatives of such States, and thereafter it shall also become effective as to the State of Connecticut immediately upon the signing thereof by the Representatives of such *Proviso*.Territory within Connecticut excluded.State: *Provided, however*, That prior to the signing of this compact by the representatives of the State of Connecticut, the district as set forth in article II shall not embrace any territory within the jurisdiction of the State of Connecticut, nor shall the commission exercise any jurisdiction or perform any duties or acts Division of expenses. affecting such territory; and the appropriations for salaries and office and other administrative expenses shall be borne equally by the State of New York and the State of New Jersey. Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, Agreement consented to. That the consent of Congress is hereby given to the States of New York, New Jersey, and Connecticut to enter into the compact hereinbefore recited, and *Proviso*.Federal rights not affected.to each and every part and article thereof: *Provided*, That nothing contained in such compact shall be construed as empowering or in any manner affecting any right or jurisdiction of the United States in and over the region which forms the subject of such compact. Sec. 2. Amendment. The right to alter, amend, or repeal this joint resolution is hereby expressly reserved. Approved, August 27, 1935. Authorizing exchange of coins and currencies and immediate payment of gold-clause securities by the United States; withdrawing the right to sue the United States thereon; limiting the use of certain appropriations; and for other purposes. 1935-08-27 49 Stat. 938 780 Chapter 2025-01-07 74 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor public [CHAPTER 780.] JOINT RESOLUTION Authorizing exchange of coins and currencies and immediate payment of gold-clause securities by the United States; withdrawing the right to sue the United States thereon; limiting the use of certain appropriations; and for other purposes. August 27, 1935.[[H. J. Res. 348.](/us/bill/74/hjres/348)][[Pub. Res., No. 63.](/us/bill/74/pubres/63)] United States gold clause securities.Preamble.Vol. 48, p. 112; [U. S. C., p. 1389](/us/usc/p1389).Whereas in order to maintain the uniform value of all coins and currencies of the United States, Public Resolution Numbered 10 of June 5, 1933, declared provisions known as “gold clauses” to be against public policy, prohibited their use in obligations thereafter incurred, and provided that money of the United States legal tender for obligations generally was legal tender for all obligations with or without gold clauses; and Whereas the United States has paid and will continue to pay to the holders of all its securities their principal and interest, dollar for dollar, in lawful money of the United States: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, Exchange of coins and currencies. That the lawful holders of the coins or currencies of the United States shall be entitled to exchange them, dollar for dollar, for other coins or currencies which may be lawfully acquired and are legal tender for Holders of old bonds entitled to immediate payment of stated dollar amount thereof.public and private debts; and that the owners of the gold clause securities of the United States shall be, at their election, entitled to receive immediate payment of the stated dollar amount thereof with interest to the date of payment or to prior maturity or to prior redemption date, whichever is earlier. The Secretary of the Treasury is authorized and directed to make such exchanges and payments upon presentation hereunder in the manner provided in regulations Period within which payments may be made.prescribed by him. The period within which the owners of gold-clause securities shall be entitled hereunder to receive payment prior to maturity shall expire January 1, 1936, or on such later date, not after July 1, 1936, as may be fixed by the Secretary of the Treasury. 939 Sec. 2. Any consent which the United States may have given to Withdrawal of consent to sue Government for any claim, etc., arising hereunder.the assertion against it of any right, privilege, or power whether by way of suit, counterclaim, set-off, recoupment, or other affirmative action or defense in its own name or in the name of any of its officers, agents, agencies, or instrumentalities in any proceeding of any nature whatsoever
(1)upon any gold-clause securities of the United States or for interest thereon, or
(2)upon any coin or currency of the United States, or
(3)upon any claim or demand arising out of any surrender, requisition, seizure, or acquisition of any such coin or currency or of any gold or silver and involving the effect or validity of any change in the metallic content of the dollar or other regulation of the value of money, is withdrawn: *Provided*, *Proviso*.Suits commenced by January 1, 1936, excepted.That (his section shall not apply to any suit heretofore commenced or which may be commenced by January 1, 1936, or to any proceeding referred to in this section in which no claim is made for payment or credit in an amount in excess of the face or nominal value in dollars of the securities, coins or currencies of the United States involved in such proceeding. Sec. 3. Except in cases with respect to which consent is not withdrawn Conformity of appropriations to designated construction.under section 2, no sums, whether heretofore or hereafter appropriated or authorized to be expended, shall be available for, or expended in, payment upon securities, coins, or currencies of the United States except on an equal and uniform dollar for dollar basis. Sec. 4. As used in this resolution the phrase “gold clause” means “Gold clause” defined.a provision contained in or made with respect to an obligation which purports to give the obligee a right to require payment in gold, or in a particular kind of coin or currency of the United States, or in an amount in money of the United States measured thereby, declared to be against public policy by Public Resolution Numbered 10 of June 5, 1933; and the phrase “securities of the United States” means the “Securities of the United States.”domestic public debt obligations of the United States, including bonds, notes, certificates of indebtedness, and Treasury bills, and other obligations for the repayment of money, or for interest thereon, made, issued or guaranteed by the United States. Approved, August 27, 1935, six p. m., E. S. T. Consenting to an interstate oil compact to conserve oil and gas. 1935-08-27 781 Chapter 49 Stat. 939 74 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-01-07 public [CHAPTER 781.] JOINT RESOLUTION Consenting to an interstate oil compact to conserve oil and gas. August 27, 1935.[[H. J. Res. 407](/us/bill/74/hjres/407).][[Pub. Res., No. 64](/us/bill/74/pubres/64).] Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the consent Oil and gas conservation.Consent given to an interstate compact relative to.of Congress is hereby given to an interstate compact to conserve oil and gas, executed in the city of Dallas, Texas, the 16th day of February, 1935, by the representatives of the States of Oklahoma, Texas, California, and New’ Mexico, and there recommended for ratification by representatives of the States of Arkansas, Colorado. Illinois, Kansas, and Michigan, and since ratified by the States of New Mexico, Kansas, Oklahoma, Illinois, Colorado, and Texas, which compact has been deposited in the Department of State of the Text of compact.United States, and reads as follows: " “article I “This agreement may become effective within any compacting State at any time as prescribed by that State, and shall become effective within those States ratifying it whenever any three of the States of Texas, Oklahoma, California, Kansas, and New Mexico have ratified and Congress has given its consent. Any oil-producing State may become a party hereto as hereinafter provided. 940 “article II “The purpose of this compact is to conserve oil and gas by the prevention of physical waste thereof from any cause. “article III “Each State bound hereby agrees that within a reasonable time it will enact laws, or if laws have been enacted, then it agrees to continue the same in force, to accomplish within reasonable limits the prevention of: “(a) The operation of any oil well with an inefficient gas-oil ratio. “(b) The drowning with water of any stratum capable of producing oil or gas, or both oil and gas in paying quantities. “(c) The avoidable escape into the open air or the wasteful burning of gas from a natural-gas well. “(d) The creation of unnecessary fire hazards. “(e) The drilling, equipping, locating, spacing, or operating of a well or wells so as to bring about physical waste of oil or gas or loss in the ultimate recovery thereof. “(f)The inefficient, excessive or improper use of the reservoir energy in producing any well. “The enumeration of the foregoing subjects shall not. limit the scope of the authority of any State. “article IV “Each State bound hereby agrees that it will, within a reasonable time, enact statutes, or if such statutes have been enacted then that it will continue the same in force, providing in effect that oil produced in violation of its valid oil and/or gas conservation statutes or any valid rule, order or regulation promulgated thereunder, shall be denied access to commerce; and providing for stringent penalties for the waste of either oil or gas. “article V “It is not the purpose of this compact to authorize the States joining herein to limit the production of oil or gas for the purpose of stabilizing or fixing the price thereof, or create or perpetuate monopoly, or to promote regimentation, but is limited to the purpose of conserving oil and gas and preventing the avoidable waste thereof within reasonable limitations. “article VI “Each State joining herein shall appoint one representative to a Commission hereby constituted and designated as ‘The Interstate Oil Compact. Commission ’, the duty of which said Commission shall be to make inquiry and ascertain from time to time such methods, practices, circumstances and conditions as may be disclosed for bringing about conservation and the prevention of physical waste of oil and gas, and at such intervals as said Commission deems beneficial it shall report its findings and recommendations to the several States for adoption or rejection. “The Commission shall have power to recommend the coordination of the exercise of the police powers of the several States within their several jurisdictions to promote the maximum ultimate recovery from the petroleum reserves of said States, and to recommend941 measures for the maximum ultimate recovery of oil and gas. Said Commiission shall organize and adopt suitable rules and regulations for the conduct of its business. “No action shall be taken by the Commission except:
(1)by the affirmative votes of the majority of the whole number of the compacting States, represented at any meeting, and
(2)by a concurring vote of a majority in interest of the compacting States at said meeting, such interest to be determined as follows: Such vote of each State shall be in the decimal proportion fixed by the ratio of its daily average production during the preceding calendar half-year to the daily average production of the compacting States during said period. “article VII “No State by joining herein shall become financially obligated to any other State, nor shall the breach of the terms hereof by any State subject such State to financial responsibility to the other States joining herein. “article VIII “This compact shall expire September 1, 1937. But any State joining herein may, upon sixty days’ notice, withdraw herefrom. “The representatives of the signatory States have signed this agreement in a single original which shall be deposited in the archives or the Department of State of the United States, and a duly certified copy shall be forwarded to the Governor of each of the signatory States. “This compact shall become effective when ratified and approved as provided in Article I. Any oil-producing State may become a party hereto by affixing its signature to a counterpart to be similarly deposited, certified and ratified. “Done in the City of Dallas, Texas, this 16th day of February, 1935.” " Sec. 2. The right to alter, amend, or repeal the provisionsPowers reserved. of section 1 is hereby expressly reserved. Approved, August 27, 1935. Relative to the retirement of certain officers and employees. 1935-08-28 791 Chapter 49 Stat. 941 74 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-01-07 public [CHAPTER 791.] AN ACT Relative to the retirement of certain officers and employees. August 28, 1935.[[S. 2364](/us/bill/74/s/2364).][
Connectionstraces to 2
5 references not yet in our index
  • 49 Stat. 928
  • 49 Stat. 929
  • 49 Stat. 932
  • 49 Stat. 938
  • 49 Stat. 941
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cites case law
Public Law 382
to establish a uniform system of bankruptcy throughout the United States”, as amended, be, and it is hereby, amended to read as follows: " “Sec. 77
Stat.Public Law 383
Stat.Public Law 94–493
Stat.49 Stat. 928
Stat.49 Stat. 929
Stat.49 Stat. 932
Stat.49 Stat. 938
Stat.49 Stat. 941
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