PROPOSED LAW EXISTING LAW (TO BE REPEALED) approved February 24, 1905 (33 Stat. 811), entitled "An Act to amend an Act approved August thirteenth, eighteen hundred and ninety-four, entitled 'An Act for the protection of persons furnishing materials and labor for the construction of public works,'" shall file with the obligee, at any time after a default in the performance of any contract subject to said Acts, the application and affidavit therein provided, the obligee shall not deliver to the obligor the deposited bonds or notes nor any surplus proceeds thereof until the expiration of the time limited by said Acts for the institution of suit by such person or persons, and, in case suit shall be instituted within such time, shall hold said bonds or notes or proceeds subject to the order of the court having jurisdiction thereof: Provided further, That nothing herein contained shall affect or impair the priority of the claim of the United States against the bonds or notes deposited or any right or remedy granted by said Acts or by this section to the United States for default upon any obligation of said penal bond: Provided further, That all laws inconsistent with this section are hereby so modified as to conform to the provisions hereof: And provided further, That nothing contained herein shall affect the authority of courts over the security, where such bonds are taken as security in judicial proceedings, or the authority of any administrative officer of the United States to receive United States bonds for security in cases authorized by existing laws. The Secretary may prescribe rules and regulations necessary and proper for carrying this section into effect. O As amended by act February 4, 1935, ch. 5, sec. 7, 49 Stat. 22 SEC. 7. Section 1126 of the Revenue Act of 1926 is amended by adding at the end thereof the following: "In order to avoid the frequent substitution of securities such rules and regulations may limit the effect of this section, in appropriate classes of cases, to bonds and notes of the United States maturing more than a year after the date of deposit of such bonds as security. The phrase 'bonds or notes of the United States' shall be deemed, for the purposes of this section, to mean any public-debt obligations of the United States and any bonds, notes, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States." ENACTMENT OF TITLE 9 OF THE UNITED STATES CODE INTO POSITIVE LAW FEBRUARY 15, 1945.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. KEOGH, from the Committee on Revision of the Laws, submitted the following REPORT [To accompany H. R. 2198] The Committee on Revision of the Laws submits the following report in explanation of the bill (H. R. 2198) to codify and enact into positive law title 9 of the United States Code, entitled "Arbitration." PURPOSE OF THE BILL The bill is intended to codify and enact into positive law the various provisions of laws now contained in title 9 of the United States Code. Under existing law these sections of title 9 of the United States Code are merely prima facie evidence of the law. They are taken from the Statutes at Large and are grouped together and classified for convenience under the title, "Arbitration." This is one of a series of bills introduced by Mr. Keogh having as their ultimate purpose the enactment into positive law all of the titles of the United States Code. For the reasons set forth in Report No. 147 by this committee favorably reporting H. R. 2195 relating to title 1 of the United States Code, this committee urges and recommend the enactment of H. R. 2198. SCOPE OF THE BILL This bill takes each section of title 9 of the United States Code, 1940 edition, and without any material change enacts each section into positive law. No attempt is made in this bill to make amendments in existing law. That is left to amendatory acts to be introduced after the approval of this bill. In compliance with clause 2a of rule XIII the changes in existing law are given below. PROPOSED LAW (United States Code, title 9) as § 1. "Maritime transactions," herein defined, means charter parties, bills of lading of water carriers, agreements relating to wharfage, supplies furnished vessels or repairs to vessels, collisions, or any other matters in foreign commerce which, if the subject of controversy, would be embraced within admiralty jurisdiction; "commerce," as herein defined, means commerce among the several States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or between any such Territory and another, or between any such Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation, but nothing herein contained shall apply to contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce. § 2. A written provision in any maritime transaction or a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction, or the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract, transaction, or refusal, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract. § 3. If any suit or proceeding be brought in any of the courts of the United States upon any issue referable to arbitration under an agreement in writing for such arbitration, the court in which such suit is pending, upon being satisfied that the issue involved in such suit or proceeding is referable to arbitration under such an agreement, shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement, providing the applicant for the stay is not in default in proceeding with such arbitration. EXISTING LAW (TO BE REPEALED) Act, February 12, 1925, ch. 213, sec. 1, 43 Stat. 883 (9 U. S. C., 1940 ed., sec. 1) That "maritime transactions," as herein defined, means charter parties, bills of lading of water carriers, agreements relating to wharfage, supplies furnished vessels or repairs to vessels, collisions, or any other matters in foreign commerce which, if the subject of controversy, would be embraced within admiralty jurisdiction; "commerce," as herein defined, means commerce among the several States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or between any such Territory and another, or between any such Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation, but nothing herein contained shall apply to contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce. Act February 12, 1925, ch. 213, sec. 2, 438 Stat. 883 (9 U. S. C., 1940 ed., sec. 2) SEC. 2. That a written provision in any maritime transaction or a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction, or the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract, transaction, or refusal, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract. Act February 12, 1925, ch. 213, sec. 3, 43 Stat. 883 (9 U. S. C., 1940 ed., sec. 3) SEC. 3. That if any suit or proceeding be brought in any of the courts of the United States upon any issue referable to arbitration under an agreement in writing for such arbitration, the court in which such suit is pending, upon being satisfied that the issue involved in such suit or proceeding is referable to arbitration under such an agreement, shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement, providing the applicant for the stay is not in default in proceeding with such arbitration. PROPOSED LAW EXISTING LAW (TO BE REPEALED) Act of February 12, 1925, ch. 213, sec. 4, 43 Stat. 883 (9′ U. S. C., 1940 ed., sec. 4) § 4. A party aggrieved by the al- SEC. 4. That a party aggrieved by leged failure, neglect, or refusal of the alleged failure, neglect, or refusal of another to arbitrate under a written another to arbitrate under a written agreement for arbitration may petition agreement for arbitration may petition any court of the United States which, any court of the United States which, save for such agreement, would have save for such agreement, would have jurisdiction under the judicial code at jurisdiction under the judicial code at law, in equity, or in admiralty of the law, in equity, or in admiralty of the subject matter of a suit arising out of subject matter of a suit arising out of the controversy between the parties, for the controversy between the parties, for an order directing that such arbitration an order directing that such arbitration proceed in the manner provided for in proceed in the manner provided for in such agreement. Five days' notice in such agreement. Five days' notice in writing of such application shall be writing of such application shall be served upon the party in default. served upon the party in default. Service thereof shall be made in the Service thereof shall be made in the manner provided by law for the service manner provided by law for the service of summons in the jurisdiction in which of summons in the jurisdiction in which the proceeding is brought. The court the proceeding is brought. The court shall hear the parties, and upon being shall hear the parties, and upon being satisfied that the making of the agree- satisfied that the making of the agree ment for arbitration or the failure to ment for arbitration or the failure to comply therewith is not in issue, the comply therewith is not in issue, the court shall make an order directing the court shall make an order directing the parties to proceed to arbitration in ac- parties to proceed to arbitration in accordance with the terms of the agree- cordance with the terms of the agreement. The hearing and proceedings, ment: Provided, That the hearing and under such agreement, shall be within proceedings under such agreement shall the district in which the petition for an be within the district in which the order directing such arbitration is filed. petition for an order directing such If the making of the arbitration agree- arbitration is filed. If the making of ment or the failure, neglect, or refusal the arbitration agreement or the failure, to perform the same be in issue, the neglect, or refusal to perform the same court shall proceed summarily to the be in issue, the court shall proceed If no jury trial be de- summarily to the trial thereof. manded by the party alleged to be in jury trial be demanded by the party default, or if the matter in dispute is alleged to be in default, or if the matter in dispute is within admiralty jurisdicwithin admiralty jurisdiction, the court shall hear and determine such issue. tion, the court shall hear and determine such issue. Where such an issue is Where such an issue is raised, the party raised, the party alleged to be in default alleged to be in default may, except in cases of admiralty, on or before the or before the return day of the notice may, except in cases of admiralty, on return day of the notice of application, of application, demand a jury trial of demand a jury trial of such issue, and such issue, and upon such demand the upon such demand the court shall make court shall make an order referring the an order referring the issue or issues to issue or issues to a jury in the manner a jury in the manner provided by law provided by law for referring to a jury for referring to a jury issues in an equity issues in an equity action, or may action, or may specially call a jury for specially call a jury for that purpose. that purpose. If the jury find that no If the jury find that no agreement in agreement in writing for arbitration writing for arbitration was made or that was made or that there is no default in there is no default in proceeding thereproceeding thereunder, the proceeding under, the proceeding shall be dismissed. shall be dismissed. If the jury find If the jury find that an agreement for that an agreement for arbitration was arbitration was made in writing and made in writing and that there is a that there is a default in proceeding default in proceeding thereunder, the thereunder, the court shall make an court shall make an order summarily order summarily directing the parties directing the parties to proceed with to proceed with the arbitration in acthe arbitration in accordance with the cordance with the terms thereof. terms thereof. trial thereof. If no |