lines, waterworks, telephone systems and light plants, and to produce, distribute and sell such services.

The districts are prohibited from incurring any indebtedness beyond the current revenues except such indebtedness as may be a charge against the plant and payable out of such plant or its revenue.

H. R. 7827 would extend the bonding power to include general obligation issues and would facilitate utility districts in constructing and operating the utilities for which they were created. The proposed legislation is similar in character to the law approved May 28, 1936 (49 Stat. 1338), as amended by Public 147, Seventy-fifth Congress approved June 14, 1937, authorizing municipal corporations in the Territory to incur bonded indebtedness.

I recommend therefore that H. R. 7827 be passed as written.

The Bureau of the Budget advises that this report is not in conflict with the legislative and financial policies of the President.

Sincerely yours,

75TH CONGRESS HOUSE OF REPRESENTATIVES 2d Session

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REPORT No. 1650

PROHIBIT MAKING OF PHOTOGRAPHS, SKETCHES, OR MAPS OF VITAL MILITARY AND NAVAL DEFENSIVE INSTALLATIONS AND EQUIPMENT

DECEMBER 3, 1937.-Referred to the House Calendar and ordered to be printed

Mr. MAY, from the Committee on Military Affairs, submitted the following

REPORT

[To accompany S. 1485]

The Committee on Military Affairs, to whom was referred the bill (S. 1485) to prohibit the making of photographs, sketches, or maps of vital military and naval defensive installations and equipment, and for other purposes, having considered the same, submit the following report thereon with the recommendation that it do pass with the following amendments:

On page 2, line 5, after the word "shall" insert the following language: "upon conviction".

On page 3, line 2, after the word "shall" insert the following language: "upon conviction".

The purpose of the bill is to prohibit persons from making unauthorized photographs, sketches, or maps of military and naval defensive installations.

The bill was introduced at the request of the War and Navy Departments. There is no existing law which will accomplish the results sought by this bill.

The committee is of the opinion that this measure is necessary to prevent important facts regarding our national-defense installations from falling into the possession of persons who, through ignorance of their significance, or hostile intent, would permit them to be used to the detriment of the United States.

A similar bill passed the Senate on January 30, 1935.

A joint letter from the Secretary of War and the Secretary of the Navy to the chairman of the Committee on Military Affairs is hereby made a part of this report:

WAR DEPARTMENT, NAVY DEPARTMENT, January 28, 1937.

Hon. MORRIS SHEPPARD,

Chairman, Committee on Military Affairs,

United States Senate.

DEAR SENATOR SHEPPARD: There is enclosed the draft of a bill to prohibit the making of photographs, sketches, or maps of vital military and naval defensive installations and equipment, and for other purposes, which the War and Navy Departments present for the consideration of the Congress with a view to its enactment into law.

S. 92, which is identical with the attached draft, was introduced in the first session, Seventy-fourth Congress, by the late Senator Trammell, but failed of enactment.

The provisions of this bill are in accordance with approved action of the Joint Board, which action was taken because both the War and Navy Departments feel that prohibitory means of this nature have become necessary in the interest of national defense.

Enactment of this proposed legislation will permit more effective control of the activities of free-lance motion-picture and still-picture operators in vital military and naval installations, where the intent of the photographer is not necessarily so flagrant as that contemplated under section I, Public, No. 24, Sixty-fifth Congress, Espionage Act.

For the reasons given, the War and Navy Departments favor the passage of this bill It will not entail any additional cost to the Government.

If your committee wishes to have hearings upon the proposed legislation, the War and Navy Departments would be pleased to designate suitable witnesses to appear.

It is recommended that it be placed on the calendar with a high priority for legislation.

This proposed legislation was submitted to the Bureau of the Budget, which reports that, insofar as the financial program of the President is concerned, there would be no objection on the part of that office to its submission to Congress.

FLOWAGE EASEMENT ON CERTAIN CHIPPEWA INDIAN LANDS BORDERING LAKE OF THE WOODS, WARROAD RIVER, AND RAINY RIVER, MINN.

DECEMBER 6, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. McREYNOLDS, from the Committee on Foreign Affairs, submitted the following

REPORT

[To accompany H. R 8432]

The Committee on Foreign Affairs, to whom was referred the bill (H. R. 8432) to provide for a flowage easement on certain ceded Chippewa Indian lands bordering Lake of the Woods, Warroad River, and Rainy River, Minn., and for other purposes, having considered the same, submit the following report thereon with the recommendation that it do pass.

For the information of the House there is inserted, and made a part of this report, a letter from the Secretary of War dated September 2, 1937, together with a letter from the Acting Secretary of the Interior dated July 29, 1937, addressed to the Secretary of War, and memorandum for the Commissioner of Indian Affairs, which are as follows: War DepartmENT, Washington, September 2, 1937.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES.

DEAR MR. SPEAKER: There is enclosed the draft of a bill to provide for a flowage easement on certain ceded Chippewa Indian lands bordering Lake of the Woods, Warroad River, and Rainy River, Minn., and for other purposes, which the War Department presents for the consideration of the Congress with a view to its enactment into law.

By act of Congress approved May 22, 1926, entitled "An act to carry into effect provisions of the convention between the United States and Great Britain to regulate the level of the Lake of the Woods, concluded on the 24th day of February 1925", as amended April 18, 1928, the Secretary of War was authorized and directed to acquire by purchase or condemnation "flowage easements up to elevation one thousand and sixty-four sea level datum upon all lands bordering on the Lake of the Woods, Warroad River, and Rainy River."

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