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Consequently, a number of cases involving misdemeanors are brought before the Federal court.

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From the foregoing it will be readily seen that a considerable amount of the time of the district court may be consumed with the trial of cases of minor importance, and, in my opinion, the enactment of the bill referred to would result in a saving of time of the courts, and of money.

SIMILAR JURISDICTION NOW EXERCISED BY UNITED STATES COMMISSIONERS IN SEVERAL NATIONAL PARKS

Under a number of statutes United States commissioners are given jurisdiction to try petty offenders in several of the national parks: In Yellowstone National Park (U. S. C., title 16, sec. 25); Yosemite National Park, Sequoia National Park, and General Grant National Park (U. S. C., title 16, sec. 66); Mount Rainier National Park (U. S. C., title 16, sec. 100); Mesa Verde National Park (U. S. C., title 16, sec. 117e); Crater Lake National Park (U. S. C., title 16, sec. 129); Glacier National Park (U. S. C., title 16, sec. 172); Rocky Mountain National Park (U. S. C., title 16, sec. 198e); Lassen Volcanic National Park (U. S. C., title 16, sec. 204e); Hawaii National Park (U. S. C., title 16, sec. 395b). The act of September 1, 1916 (39 Stat. 693), conferred jurisdiction on United States commissioners in Maryland to try traffic law violations committed on that part of the Conduit Road, which is located in Maryland.

The committee made inquiry with reference to the experience under these statutes, and was advised by the Attorney General as follows:

Trial jurisdiction over petty offenses exercised by United States Commissioners stationed in national parks, has been found to give general satisfaction and to avoid a great deal of the difficulties that might be encountered if it were necessary to bring the defendants in such cases to the Federal courts. This Department is informed by the National Park Service that it regards such jurisdiction as indispensable.

The committee gave consideration to a suggestion that the bill be broadened to provide trials by commissioners of all petty offenses against Federal laws wherever committed. The committee feel, however, that this suggestion should be given further study, and that after such study if legislation be deemed advisable it should be the subject of a separate bill.

There is attached hereto and made a part of this report the following communcation from the Attorney General to the Speaker of the House in which he recommends enactment of this proposed legislation:

Hon. WILLIAM B. BANKHEAD,

OFFICE OF THE ATTORNEY GENERAL,
Washington, D. C., January 22, 1937.

House of Representatives, Washington, D. C.

MY DEAR MR. SPEAKER: Considerable difficulty has been encountered in connection with prosecutions for minor offenses committed on Federal reservations, due to the fact that it is necessary to prosecute such cases in the Federal courts. Typical of a large class of such minor offenses are violations of traffic laws committed within Federal reservations. As it often happens that the courts are far distant from the place where the offense was committed, delays take place and unnecessary expenses are incurred which should be avoided.

For several of the national parks, United States commissioners have been provided, with jurisdiction to try persons charged with petty offenses committed therein (Yellowstone National Park, U. S. C., title 16, sec. 25; as to other national parks, see U. S. C., title 16, secs. 66, 100, 117e, 129, 172, 198e, 204e, and 395e). The act of September 1, 1916 (39 Stat. 693), conferred jurisdiction on United

States commissioners in Maryland to try traffic-law violations committed on that part of the Conduit Road, which is located in Maryland.

I recommend that jurisdiction to try petty offenses committed on any Federal reservation be conferred upon United States commissioners specially designated for that purpose by the United States district courts. A "petty offense" is one which may be punished by confinement in a jail for a period not exceeding 6 months or a fine not exceeding $500, or both (U. S. C., title 18, sec. 541).

The defendant should, however, be given the right of trial in the United States district court, if he so elects; and, if tried before the commissioner, an appeal should lie to the district court.

The enclosed measure would effectuate the foregoing recommendation.
Sincerely yours,

HOMER CUMMINGS, Attorney General.

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AMENDING ACT TO ESTABLISH A UNIFORM SYSTEM OF BANKRUPTCY THROUGHOUT THE UNITED STATES

JUNE 1, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. CHANDLER, from the Committee on the Judiciary, submitted the following

REPORT

[To accompany H. R. 4343]

The Committee on the Judiciary, to whom was referred the bill (H. R. 4343) to amend the Bankruptcy Act by adding a clause to subdivision (c) of section 77B of said act, having heard and considered the same, unanimously report favorably to the House with the recommendation that the bill pass.

GENERAL STATEMENT

Section 77B of the National Bankruptcy Act relates to the reorganization of private corporations that are financially distressed or insolvent, and subsection (c) thereof prescribes the powers of the Federal court having jurisdiction of reorganization proceedings. The clause (3%) sought to be included in subsection (c) is intended to give the court the power to authorize the lease or sale, on proper terms and conditions, of property owned by the debtor corporation if the court finds the lease or sale thereof advisable and to the best interests of the debtor and its creditors. The proposed amendment to the act will facilitate the work of the court in corporate reorganization proceedings and is a reasonable grant of power. Its absence has caused a number of hardships in proceedings which have been filed under section 77B, and the subject has been given thorough study. The bill meets a need, contains proper safeguards, and has had no opposition.

The bill was referred to the Treasury Department for an opinion in connection with any interest which the Treasury might have in the property of the corporate debtor, and the opinion of the Secretary of the Treasury under date of April 15, 1937, is as follows:

The subject matter of H. R. 4343, supra, is of such a nature that this Department does not have any objection to its enactment. Any moneys received as a

result of a lease or sale of the debtor's property, approved by the judge, would be impressed with any claims of the United States, including liens for taxes due it, in the same manner and to the same extent as the property as leased or sold.

In compliance with clause 2a of rule XIII existing law is printed below in roman, with new matter proposed to be inserted printed in italic:

(c) Upon approving the petition or answer or at any time thereafter, the judge, in addition to the jurisdiction and powers elsewhere in this section conferred upon him, (1) may, after hearing upon notice to the debtor and to such others as the judge may determine temporarily continue the debtor in possession or appoint a trustee or trustees of the debtor's estate, and shall require the debtor, or such trustee or trustees, if appointed, to give such notice as the order may direct to creditors and stockholders and to cause publication thereof to be made at least once a week for two successive weeks of a hearing to be held within thirty days after such appointment, or, if no such appointment, within thirty days after the approval of the petition or answer, at which hearing or any adjournment thereof, or at any subsequent hearing after notice, the judge may make permanent any such appointment, or terminate it and restore the debtor to possession, or, if no trustee has been appointed, may appoint a trustee or trustees, and may remove any such trustee or trustees and continue the debtor in possession or appoint a substitute trustee or trustees and may appoint an additional trustee or trustees; (2) shall fix the amount of the bond of every such trustee, and every such trustee, 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 the powers of a trustee appointed pursuant to section 44 of this Act, and if authorized by the judge, the same powers as those exercised by a receiver in equity to the extent consistent with this section, and, subject to the authorization and control of the judge, the power to operate the business of the debtor during such period, fixed or indefinite, as the judge may from time to time prescribe; (3) may, for cause shown, authorize the debtor or the trustee or trustees, if appointed, 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, as may be lawful in the particular case; (31⁄2) may, for cause shown, and in accordance with such rules as to notice and hearing as the Supreme Court may prescribe, authorize the debtor, or the trustee or trustees, if appointed, to lease or sell, upon such terms and conditions as may be approved by the judge, any property of the debtor, whether real or personal: (4) shall require the debtor, or the trustee or trustees, if appointed, 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 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 may direct the debtor, or the trustee or trustees, if appointed, to prepare (a) a list of all known bondholders and creditors of, or claimants against, the debtor or its property, and the amounts and character of their debts, claims, and securities, and the last known post-office address or place of business of each creditor or claimant, and (b) a list of the stockholders of each class of the debtor, with the last known post-office address or place of business of each, which lists shall be open to the inspection of any creditor or stockholder of the debtor, during reasonable business hours, upon application to the debtor, or to the trustee or trustees, if appointed, and the contents of such lists shall not constitute admissions by the debtor or the trustees in a proceeding under this section or otherwise; (5) may direct the rejection of contracts of the debtor executory in whole or in part; (6) shall determine a reasonable time within which the claims and interests of creditors and stockholders may be filed or evidenced and after which no such claim or interest may participate in any plan, except on order for cause shown, the manner in which such claims and interests may be filed or evidenced and allowed, and, for the purposes of the plan and its acceptance, the division of creditors and stockholders into classes according to the nature of their respective claims and interests; and may, for the purposes of such classification, classify as an unsecured claim, the amount of any secured claim in excess of the value of the security therefor, such value to be determined in accordance with the provisions of section 57, clause (h), of this Act; (7) shall cause reasonable notice of such determination and of all hearings for the consideration of any proposed plan, or of the dismissal of the proceedings, or the liquidation of the estate. or the allowance of fees or expenses, to be given creditors and stockholders by publication or otherwise; (8) if a plan of reorganization is not proposed or ac

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