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ARMORY, UNIVERSITY OF TENNESSEE, NORTHVILLE

Senator MCKELLAR. I have a telegram here from Mr. James D. Hoskins, acting president, University of Tennessee, Northville, which I want to read into the record.

Armory greatly needed at University Tennessee. Earnestly request you to support inclusion of armories in appropriation bill.

JAMES D. Hoskins, Acting President.

They have a right to borrow now, have they not?
Secretary IсKES. Yes.

Senator MCKELLAR. I will put that telegram in the record.
(The telegram referred to is as follows:)

Hon. K. D. MCKELLAR,

United States Senator:

Armory greatly needed at University Tennessee. Urgently request you to support inclusion of armories in appropriation bill.

JAMES D. HOSKINS, Acting President.

INDIAN AFFAIRS, PHYSICAL IMPROVEMENTS

Senator DICKINSON. Under Indian Affairs, I notice that you have physical improvements $8,154,000. Does that mean physical expansion of properties?

Secretary ICKES. Yes, sir; schools and other buildings; schools, hospitals, dams and water supply.

Senator DICKINSON. General improvements in behalf of the Indians?

Secretary ICKES. Yes.

Senator MCKELLAR. Is any of it used for the purpose of taking care of the Indian's property, like their lands, timber lands, and things of that sort?

Secretary ICKES. No, sir; there is not.

MOON LAKE RESERVOIR

Senator DICKINSON. I notice the Moon Lake Reservoir, $1,500,000. Secretary ICKES. Yes.

OWYHEE DAM PROJECT

Senator DICKINSON. Owyhee Dam project, $5,000,000. I would just like to have a statement as to whether those projects were authorized.

Secretary ICKES. Those are going projects now. This is for completion.

Senator DICKINSON. Repairs and expansion?

Secretary ICKES. That is it. For completion.

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List of Reclamation Bureau projects for which allotments have been made by the Public Works Administration

Directly authorized by Congress_

Authorized by Congress through the National Recovery Act_.

Total__

RECLAMATION PROJECTS

$52, 605, 000 50, 930, 000

103, 535, 000

Senator DICKINSON. Now, there is a general allocation here for reclamation projects $17,770,000. I take it that that allocation is one wherein you have authorized for reclamation projects a certain amount of money for improvement, if it is in line with your policies. Secretary ICKES. I do not think so. We made no general allocations for reclamation.

Senator DICKINSON. Well, there is an item on page 7 of your last weekly report, "Reclamation projects, $17,770,000.

Secretary ICKES. Well, we will supply that information.

Colonel WAITE. We will give you a break-down.

Senator DICKINSON. I would like to see a break-down.

Secretary ICKES. I think that that is an accrued number of small items, repair to existing reclamation projects, but each one has a specified amount. There is no general allocation.

The following reclamation projects were included in the amount of $17,700,000, as given in the statement of the Chief Accountant to the Director of the Bureau of the Budget, dated May 12, 1934.

VIRGIN ISLANDS

Senator DICKINSON. There is included in here, in this break-down

for the Virgin Islands, $1,000,000.

ALASKA RAILROAD

And for the Alaska Railroad Commission $1,596,000, Alaska Railroad $210,008, and the Territory of Alaska $175,500.

What is the general policy there, and the reason for the advance

ment of these funds?

Mr. BURLEW. For the Alaska Road Commission, it is to construct highways. Of course, Alaska was left out of the highway act for 1934. For the Alaska Railroad itself, it is for physical improvements of bridges and trestles, and for the Territory it is for schools. Senator DICKINSON. Is there anything given for what is called the

"Richardson Highway"?

Mr. BURLEW. No; not specifically for the Richardson Highway. and it washes down into the creek the next day; but still they need

a road.

Mr. BURLEW. Of course, that is maintained out of regular main

tenance funds.

Secretary ICKES. The Army built that and then gave it to us. Senator HAYDEN. Let me inquire just a moment as to the nature of this list. Is this a list of allocations made out of the previous appropriations, or is this an estimate of future work?

Secretary ICKES. Out of previous years.

Senator DICKINSON. This is $3,300,000,000.

Senator MCKELLAR. I did not get you. I understood you to say that that was a part of

Secretary ICKES. Allocations made out of the original appropriation of $3,300,000,000 for public works.

Senator McKELLAR. Yes, sir.

Senator DICKINSON. Under Executive Order No. 6550, dated January 6, 1934, it is required of the various heads of the various bureaus that they make a report once a week of their expenditures to the Budget Director, and under a resolution of mine a copy of

that report is filed with the Secretary of the Senate for use of Members of the Senate, and this is a statement of that. I will read the heading: Statement of all allocations of funds made during the week ended May 12, 1934, from the emergency appropriation (or_fund) of $3,300,000,000 for National Industrial Recovery (Executive Order No. 6550, Jan. 6, 1934).

Senator HAYDEN. Last week's report and this week's report would vary in certain respects, but in each they would report the total allocations.

Senator DICKINSON. They would report the general allocations and the general expenditures; it is a list of the weekly expenditures. That is the purpose of it.

VIRGIN ISLANDS

With reference to the Virgin Islands, $1,000,000, and Virgin Islands, $930,000, it is my understanding you have organized a corporation down there, and I would be very glad to have your attorney insert in the record the assumed authority for that found in the Public Works Administration Act.

Secretary ICKES. We will do that.

(The opinion of the Attorney General on the subject follows:)

OFFICE OF THE ATTORNEY GENERAL,

Washington, D.C., March 19, 1934.

The Honorable the SECRETARY OF THE INTERIOR.

MY DEAR MR. SECRETARY: I have the honor to comply with your request of March 3 for my opinion upon the questions hereinafter indicated, arising in connection with proposed Federal participation in a plan for the economic and social rehabilitation of the Virgin Islands.

It has been decided to purchase and put in condition for operation certain wasting industrial properties in the Virgin Islands as a Federal public works project under the National Industrial Recovery Act, the execution of this project already having been begun; and it is proposed to lease these properties for a small annual rental to the Virgin Islands Co., a nonprofit corporation to be chartered for the purpose by special act of the Coloneial Council, St. Croix. The corporation will undertake to operate factories, mills, distilleries, etc., and to maintain them in good condition and repair in order to provide both direct employment and a market for raw materials produced in the islands. It will also purchase appropriate land and resell it to selected homesteaders upon liberal credit, supplying them with part-time industrial employment and processing the sugarcane grown by them at reasonable rates.

Specifically you submit the following inquiries:

"1. Is the proposed lease of Government property to the Virgin Islands Co. within the discretion vested in the Federal Emergency Administrator of Public Works?

"2. May the Division of Subsistence Homesteads of the Department of the Interior make loans in aid of subsistence homestead projects in the Virgin Islands?

"May the Subsistence Homesteads Division lend money to the Virgin Islands Co. under such terms and upon such conditions as appear in the proposed a loan agreement?"

The National Industrial Recovery Act expressly authorizes the acquisition of real and personal property and the leasing of such property in connection with public works projects. The power to make such leases is not limited in any manner, and the terms thereof are left within the discretion of the President, acting through the Public Works Administrator or other agency, as provided in section 203. I find nothing in the proposed lease which could reasonably be said to go beyond this discretion. The stated rental is small, but the provision for leasing properties acquired under the Public Works program is to be read, not as contemplating a necessary profit to the Government, but in the light of the declared purposes of the statute to rehabilitate industry and to increase employment.

mu

Section 208, providing for subsistence homesteads, reads as follows: "To provide for aiding in the redistribution of the overbalance of population ha in industrial centers $25,000,000 is hereby made available to the President, to be used by him through such agencies as he may establish and under such regulations as he may make, for making loans for and otherwise aiding in the purchase of subsistence homesteads. The moners collected as repayment of said loans shall constitute a revolving fund to be administered as directed by the President for the purposes of this section."

This section, considered alone, does not forbid extending to the Virgin Islands the relief authorized, and therefore leaves the matter within the discretion of the President. Other sections, including that relating to public works, are specifically stated to be applicable in the Virgin Islands. The omission of any such language in section 208 is sufficiently explained by the fact that it is a broad and general authorization for an expenditure of a specified sum with no such detailed provisions as are found in the sections relating to public works and other projects and, therefore, strongly indicative of an intention to leave the President unrestricted except that the fund must be used for aiding the redistribution of the overbalance of population in industrial centers." The legislative history of the measure indicates that the subsistence homesteads provision was added to the bill by amendment in the Senate without apparent intention that its language should be restricted by presumptions arising from the greater detail with which other and separable provisions were surrounded.

In my opinion to you of October 4, 1933, I approved the principle of carrying out subsistence homesteads projects through corporations, and, necessarily, a corporation created for such purpose could not function without funds. A loan coupled with an obligation on the part of the corporation to assist prospective homesteaders to establish and buy homesteads and to furnish them with part-time employment and substantial assurance of profit from crops grown by them, reasonably comes within the discretion conferred upon the President.

It is therefore my opinion that the proposed lease and loan to the Virgin Islands Co., under the circumstances described, are not prohibited by the National

Industrial Recovery Act.

Respectfully,

HOMER CUMMINGS, Attorney General.

NAVY DEPARTMENT

YARDS AND DOCKS, CONSTRUCTION AT SHORE STATIONS

Senator DICKINSON. I also notice under the Navy Department, 288,552." Is that for general construction, reconstruction, and exBureau of Yards and Docks, "Construction at shore stations $24,pansion of shore stations?

Secretary ICKES. A good deal of that sum, that is, a good deal of hat is for replacement of machinery. That gave us a chance to help the heavy industries.

REEDSVILLE, W.Va., CONSTRUCTION OF BUILDINGS

Senator DICKINSON. The next item is for the construction of build

ings at Reedsville, W.Va., $525,000. I would be very glad to have you insert in the record the assumed authority for the construction of an industrial plant as a public bility of it is concerned. Setary ICKES. The legal authority?

building

I do not care to go into the question so far as the advisa

Sator DICKINSON. I simply want to see the legal authority.

HUNT. The resolution adopted December 28 recites the request

of the Postmaster General for an allotment of $525,000 to finance the

struction and equipment of a plant at Reedsville, W.Va., to manture certain articles used by the Post Office Department. Inas

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