OF E provided likewise. The conference agreement removes the time. restriction. The House bill provided that after June 30, 1939, the contribution by the United States toward expenses of the District shall in no event be more than $5,000,000 for any one fiscal year. The Senate amendment provided for a formula based upon the land area in the District owned by the United States, the application of which under present conditions would result in the payment by the United States to the District of approximately $8,000,000, being an amount equal to approximately 20 percent of the general expenses of the District. The conference agreement provides that for the fiscal year ending June 30, 1940, and for each fiscal year thereafter, there shall be appropriated for the payment by the United States toward defraying the expenses of the District the sum of $6,500,000. Title III of the House bill provided for a parking-lot tax imposed on the operators of all parking lots in the District amounting to 2 percent of the gross receipts derived therefrom. No comparable provision is found in the Senate amendment, or in the conference report. Such tax would produce only a small amount of revenue, but result in an increased burden to users of parking lots. Title IV of the House bill provided for the amendment and repeal of certain revenue acts relating to the District, for the most part administrative. The Senate amendment in title VI provided for the amendment and repeal of the same acts, except in the following respects: The House bill provided for the repeal of the law imposing an intangible personal property tax. The Senate amendment had no comparable provision. The House bill provided for collection of taxes by the District in jurisdictions without the District. The Senate amendment had no comparable provision. The Senate amendment provided that no tangible personal property tax shall be imposed on personal property stored in transit in the District. The House bill had no comparable provision. The conference agreement provides for the repeal of the law imposing a tax on intangible personal property, and specifically provides that the tax on real estate and tangible personal property for the fiscal year ending June 30, 1940, shall be 1.75 percent of the assessed value of such property. In other matters relating to the repeal and amendment of prior acts the conference agreement conforms to the Senate amendment. Title V of the House bill provided for the amendment of title V of the District of Columbia Revenue Act of 1937, as amended, and provided for a new tax, namely, a gift tax. The Senate amendment provided for the amendment to the District of Columbia Revenue Act of 1937, as amended, but did not provide for the gift tax. The conference agreement adopts such provisions of the Senate amendment. The Senate amendment provided that there shall be credited to the District that proportion of the fines and fees collected by the District Court of the United States for the District of Columbia and by the United States Court of Appeals for the District of Columbia as the amount paid by the District toward the salaries and expenses of such court bears to the total amount of such salaries and expenses. The conference agreement adopts such provision. The conference agreement provides for the creation of a joint select committee, consisting of three members of the Senate and three members of the House, to study the tax structure of the District, and to make a report of such study with recommendations to Congress. JENNINGS RANDOLPH, AMBROSE J. KENNEDY, EVERETT M. DIRKSEN, GEORGE J. BATES, Managers on the part of the House. O 1st Session No. 1094 AMENDMENTS TO TENNESSEE VALLEY AUTHORITY ACT OF 1933 JULY 12, 1939.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. MAY, from the committee of conference, submitted the following CONFERENCE REPORT [To accompany S. 1796] The committee of conference on the disagreeing votes of the two Houses on the amendment of the House to the bill (S. 1796) to amend the Tennessee Valley Authority Act of 1933, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the Senate recede from its disagreement to the amendment of the House and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the House amendment insert the following: That the Tennessee Valley Authority Act of 1933, as amended, is amended by adding after section 15a the following new sections: "SEC. 15b. No bonds shall be issued by the Corporation after the date of enactment of this section under section 15 or section 15a. "SEC. 15c. With the approval of the Secretary of the Treasury the Corporation is authorized, after the date of enactment of this section, to issue bonds not to exceed in the aggregate $61,500,000. Such bonds may be sold by the Corporation to obtain funds which may be used for the following purposes only: 66 (1) Not to exceed $46,000,000 may be used for the purchase of electric utility properties of the Tennessee Electric Power Company and Southern Tennessee Power Company, as contemplated in the contract between the Corporation and the Commonwealth and Southern Corporation and others, dated as of May 12, 1939. "(2) Not to exceed $6,500,000 may be used for the purchase and rehabilitation of electric utility properties of the Alabama Power Company and Mississippi Power Company in the following named counties in northern Alabama and northern Mississippi: The counties of Jackson, Madison, Limestone, Lauderdale, Colbert, Lawrence, Morgan, Marshall, De Kalb, Cherokee, Cullman, Winston, Franklin, Marion, and Lamar in northern Alabama, and the counties of Calhoun, Chickasaw, Monroe, Clay, Lowndes, Oktibbeha, Choctaw, Webster, Noxubee, Winston, Neshoba, and Kemper in northern Mississippi. "(3) Not to exceed $3,500,000 may be used for rebuilding, replacing, and repairing electric utility properties purchased by the Corporation in accordance with the foregoing provisions of this section. "(4) Not to exceed $3,500,000 may be used for constructing electric transmission lines, substations, and other electrical facilities necessary to connect the electric utility properties purchased by the Corporation in accordance with the foregoing provisions of this section with the electric power system of the Corporation. "(5) Not to exceed $2,000,000 may be used for making loans under section 12a to States, counties, municipalities, and nonprofit organizations to enable them to purchase any electric utility properties referred to in the contract between the Corporation and the Commonwealth and Southern Corporation and others, dated as of May 12, 1939, or any electric utility properties of the Alabama Power Company or Mississippi Power Company in any of the counties in northern Alabama or northern Mississippi named in paragraph (2). The Corporation shall file with the President and with the Congress in December of each year a financial statement and complete report as to the expenditure of funds derived from the sale of bonds under this section covering the period not covered by any such previous statement or report. Such bonds shall be in such forms and denominations, shall mature within such periods not more than fifty years from the date of their issue, may be redeemable at the option of the Corporation before maturity in such manner as may be stipulated therein, shall bear such rates of interest not exceeding 32 per centum per annum, shall be subject to such terms and conditions, shall be issued in such manner and amount, and sold at such prices, as may be prescribed by the Corporation with the approval of the Secretary of the Treasury: Provided, That such bonds shall not be sold at such prices or on such terms as to afford an investment yield to the holders in excess of 31⁄2 per centum per annum. Such bonds shall be fully and unconditionally guaranteed both as to interest and principal by the United States, and such guaranty shall be expressed on the face thereof, and such bonds shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof. In the event that the Corporation should not pay upon demand when due, the principal of, or interest on, such bonds, the Secretary of the Treasury shall pay to the holder the amount thereof, which is hereby authorized to be appropriated out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such bonds. The Secretary of the Treasury, in his discretion, is authorized to purchase any bonds issued hereunder, and for such purpose the Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds from the sale of any securities hereafter issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of the Corporation's bonds hereunder. The Secretary of the Treasury may, at any time, sell any of the bonds of the Corporation acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of the bonds of the Corporation shall be treated as public-debt transactions of the United States. With the approval of the Secretary of the Treasury, the Corporation shall have power to purchase such bonds in the open market at any time and at any price. None of the proceeds of the bonds shall be used for the performance of any proposed contract negotiated by the Corporation under the authority of section 12a of this Act until the proposed contract shall have been submitted to and approved by the Federal Power CommisWhen any such proposed contract shall have been submitted to the said Commission, the matter shall be given precedence and shall be in every way expedited and the Commission's determination of the matter shall be final. The authority of the Corporation to issue bonds under this section shall expire January 1, 1941, except that if at the time such authority expires the amount of bonds issued by the Corporation under this section is less than $61,500,000, the Corporation may, subject to the foregoing provisions of this section, issue, after the expiration of such period, bonds in an amount not in excess of the amount by which the bonds so issued prior to the expiration of such period is less than $61,500,000, for refunding purposes, or, subject to the provisions of paragraph (5) of this section (limiting the purposes for which loans under section 12a of funds derived from bond proceeds may be made) to provide funds found necessary in the performance of any contract entered into by the Corporation prior to the expiration of such period, under the authority of section 12a." And the House agree to the same. A. J. MAY, EWING THOMASON, Managers on the part of the House. ELMER THOMAS, B. K. WHEELER, Managers on the part of the Senate. H. Repts., 76-1, vol. 5—63 |