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COMMITTEE ON FINANCE.

PORTER J. MCCUMBER, of North Dakota, Chairman. REED SMOOT, of Utah.

FURNIFOLD MCL. SIMMONS, of North Carolina, ROBERT M. LA FOLLETTE, of Wisconsin. JOHN SHARP WILLIAMS, of Mississippi. WILLIAM P. DILLINGHAM, of Vermont. ANDRIEUS A. JONES, of New Mexico. GEORGE P. MCLEAN, of Connecticut.

PETER G. GERRY, of Rhode Island. CHARLES CURTIS, of Kansas.

JAMES A. REED, of Missouri.
JAMES E. WATSON, of Indiana.

DAVID I. WALSH, of Massachusetts.
WILLIAM M. CALDER, of New York,
HOWARD SUTHERLAND, of West Virginia.
JOSEPH S. FRELINGHUYSEN, of New Jersey.

ROBERT W. FARRAR, Clerk.
W. B. STEWART, Assistant Clerk.

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SOLDIERS' ADJUSTED COMPENSATION.

MONDAY, MAY 29, 1922.

UNITED STATES SENATE,
SUBCOMMITTEE OF COMMITTEE ON FINANCE,

Washington, D. C. The subcommittee met pursuant to call at 2.30 o'clock p. m., in the committee room, Capitol, Senator McLean of Connecticut presiding.

Present: Senators McLean (chairman), Curtis, Sutherland. Present, also, Senator McNary, of Oregon, Congressmen Sinnott, of Oregon, Smith of Idaho, and White of Kansas.

Senator McLEAN. Mr. Mondell, you are interested, I believe, in Title 8 of H. R. 10874, the bonus bill, so called, which reads as follows:

(H. R. 10874, Sixty-seventh Congress, second session. AN ACT To provide adjusted compensation for veterans of the World War, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

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Sec. 801. (a) There is hereby established a board to be known as the “National Veterans' Settlement Board” (hereinafter in this title called the “board”) and to be composed of five members as follows:

(1) The Secretary of the Interior (hereinafter in this title called the “Secretary'), and

(2) Four members to be appointed by the President by and with the advice and consent of the Senate.

(b) No veteran retired for age or longevity of service from active service in the military or naval forces shall be eligible for appointment to, or remain eligible for membership upon, the board. Any vacancy in the office of an appointed member shall be filled in the same manner and under the same limitations as in the case of the original appointment.

(c) The Secretary shall be the executive and administrative officer to carry out the plans and purposes adopted by the board under the provisions of Title VIỈ and of this title. The members of the board, except the Secretary, shall receive an annual salary of $7,500. Of the members appointed to the board in the first instance, one shall be appointed for a term of two years, one for three years, one for four years, and one for five years. Their successors shall hold office for terms of five years; except that any member appointed to fill a vacancy shall be appointed only for the unexpired term of the member whom he succeeds.

ESTABLISHMENT OF PROJECTS.

SEC. 802. The board is hereby authorized to establish veteran settlement projects (hereinafter in this title called "projects”) for the reclamation and settlement of lands by means of irrigation, drainage, or other manner or method of development and improvement thereof, including the building of necessary public roads within the projects. Projects shall be selected by the board with a view to the development of one or more projects in each of the several States where the establishment of a project is feasible.

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SEC. 803. (a) The board may by gift, purchase, deed in trust, or otherwise acquire lands suitable for any project; but no project shall be finally selected, and no lands shall be acquired by purchase, unless the price and other conditions of acquisition have been submitted to and approved by (i) the governor of the State in which the lands are located, (2)

as to price only, a land bank appraiser to be designated by the Federal Farm Loan Board, and (3) the board. If the governor of the State fails to signify his approval or disapproval within such time as the board by regulation shall determine, the land commissioner, or if there is in the State no official of such title, then the agency which under the laws of the State is authorized to perform the functions ordinarily exercised by a land commissioner, may act in lieu of the governor.

(b) In case any project includes privately owned land, no construction work shall be commenced upon the project until the owners of all such land in the project have each conveyed or agreed to convey to the l'nited States title to all land owned by him in excess of a farm unit as established for thejproject under the provisions of section 806.

(c) The Secretary (1) may withdraw from location, sale, settlement, entry, or other disposition and place under the control of the board such unappropriated public lands as he deems necessary for any project, and (2) shall restore to public entry lands so withdrawn, if subsequently the board finds that such lands are not so required.

(d) The board may in its discretion contract with any irrigation or drainage district or other public corporation organized under the laws of the State in which the project is located to establish, develop, improve, and otherwise cooperate (in accordance with the provisions of this title) in the execution of, and the administration of the affairs of, any project comprising only the lands of such district or corporation.

COOPERATION WITH FEDERAL AND STATE AGENCIES.

Sec. 804. The board may, in executing the provisions of this title

(a) Make use of, cooperate with, and allot moneys appropriated for its use to, any existing agency of the Federal Government which agrees to act as the agent of the board. Such agency is hereby authorized, within the limits of the moneys allotted it and under the direction of the board, to perform work in connection with any project.

(b) Whenever a State provides funds to be expended by the board in the establishment, development, and improvement of any project within the State, the board may contract with the State, or any agency thereof designated by the governor, to cooperate with the board, to such extent as the board deems advisable, in the work in connection with the project. The board may further establish a branch office in the State to administer matters arising in connection with projects in the State.

(c) Whenever a State provides not less than 25 per centum of the amount of the funds which are, in the opinion of the board, necessary to be expended by it in the establishment, development, and improvement of any project within the State, the board shall authorize the State, or any agency thereof designated by the governor, to undertake, subject to the general supervision of the board, (1) the selection, acquisition, and subdivision of lands for, and the improvement of farms within, any project, and (2) the development thereof after the project is open to settlement.

SEC. 805. So far as practicable, veterans shall be employed and their services utilized in the administrative and field work necessary to the establishment and development of any project by the board and all Federal agencies cooperating therewith.. All contracts or other agreements of the board with any cooperating State or agency thereof shall contain a like stipulation. At the earliest practicable date each veteran so employed upon a project shall be allowed to select and shall be allotted, as hereinafter in this title provided, a farm unit upon which he may construct a dwelling and make other improvements.

ALLOTMENT AND SALE OF LANDS.

SEC. 806. (a) The board shall establish for each project or portion thereof (1) farm units of an acreage sufficient, in the opinion of the board, for cultivation by and the support of a family, and (2) farm worker's units of a small acreage sufficient, in the opinion of the board, for part-time cultivation by a farm worker's family.

(b) The board may set apart and reserve tracts within any project for use free from all charge for community and other public purposes, but the title to such lands shall remain in the United States. Whenever any such tract fails to be used for the purpose for which it was set apart and reserved, the board shall, after due notice and hearing, declare the tract forfeited to the United States. Such tract shall thereupon resume its original status.

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