(7) For the construction of projects heretofore authorized under the Bureau of Yards and Docks, Navy Department, $10,000,000.

(8) For emergency construction of public buildings projects in the continental United States outside of the District of Columbia, to be selected by the Secretary of the Treasury from the allocated public buildings projects specified in House Document Numbered 788, Seventy-first Congress, third session, for which no appropriations have been made $100,000,000. Such projects shall be constructed within the estimated limit of cost specified in such document, and in selecting such projects preference shall be given to places where Government facilities are housed in rented buildings under leases which will expire on or before July 1, 1934, or which may be terminated on or prior to that date by the Government. (9) The remainder of such sum of $500,000,000 shall be available for expenditure upon permanent improvement projects, to be selected by the President, for which appropriations have heretofore been made or shall be hereafter made for expenditure during the fiscal year 1932 or 1933.

(b) The unexpended balance of any sums heretofore or hereafter appropriated for expenditure during the fiscal year 1932 or 1933 upon projects referred to in paragraphs (6) and (7) of subdivision (a), or selected under paragraph (9) of subdivision (a), shall be covered into the Treasury as miscellaneous receipts.

(c) No money shall be available for expenditure under this section except in connection with projects in the continental United States outside of the District of Columbia.

SEC. 5. (a) There is hereby created a special fund in the Treasury to be known as the emergency construction fund and to be administered by the Secretary of the Treasury. For the purpose of providing funds to carry out the provisions of section 4 of this act, the Secretary of the Treasury is authorized and directed to borrow from time to time on the credit of the United States not to exceed $500,000,000, and to issue bonds therefor, to be known as emergency construction bonds, in such form as he may prescribe. Such bonds shall be in denominations of not less than $50, shall mature twenty-five years from the date of their issue, and shall bear interest at such rates as may be fixed by the Secretary of the Treasury, but not to exceed 44 per centum per annum. The principal and interest of such bonds shall be payable in United States gold coin of the present standard of value, and such bonds shall be exempt, both as to principal and interest, from all taxation (except estate, inheritance, and gift taxes, and surtaxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority.

(b) Such bonds shall be first offered at not less than par, as a popular loan, under such regulations to be prescribed by the Secretary of the Treasury as will give all citizens of the United States an equal opportunity to participate therein. Any portion of the bonds so offered and not subscribed for may be otherwise disposed of by the Secretary of the Treasury at not less than par. No commissions shall be allowed or paid in connection with the sale or other disposition of any such bonds. All amounts derived from the sale of such bonds shall be paid into the emergency construction fund.

The

(c) There is hereby created in the Treasury a cumulative sinking fund for the retirement of the bonds issued under this section. The sinking fund and all additions thereto are hereby appropriated for the payment of such bonds at maturity, or for the redemption or purchase thereof before maturity by the Secretary of the Treasury at such prices and upon such terms and conditions as he shall prescribe, and shall be available until all such bonds are retired. average cost of the bonds purchased shall not exceed par and accrued interest. Bonds purchased, redeemed, or paid out of the sinking fund shall ne canceled and retired and shall not be reissued. For the sixth fiscal year after the issuance of any bonds under this section and for each fiscal year thereafter, until all such bonds are retired, there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, for the purposes of such sinking fund an amount equal to 5 per centum of the aggregate amount of such bonds outstanding on the first day of such fiscal year, and for the fiscal year ending June 30, 1933, and for each fiscal year thereafter, there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, for the purposes of such sinking fund, an amount equal to the interest payable on such bonds during such fiscal year. The Secretary of the Treasury shall submit to Congress at the beginning of each regular session (until all bonds issued under this section are retired) a report of the action taken under the authority contained in this section.

SEC. 6. All grants and loans made and all contracts let for construction projects pursuant to this act shall be subject to the conditions that no convict labor shall be directly employed on such projects, and that, so far as practicable, except in executive and administrative positions, no person employed on such projects shall be permitted to work more than thirty hours in any one week.

SEC. 7. The last paragraph of section 6 of the Federal highway act, approved November 9, 1921, as amended and supplemented (U. S. Č., title 23, sec. 6), is hereby amended to read as follows:

"Whenever provision has been made by any State for the completion and maintenance of 90 per centum of its system of primary or interstate and secondary or intercounty highways equal to 7 per centum of the total mileage of such State, as required by this act, said State, through its State highway department, by and with the approval of the Secretary of Agriculture, is hereby authorized to increase the mileage of the primary or interstate and secondary or intercounty systems by additional mileage equal to not more than 1 per centum of said total mileage of such State, and therefter to make like increases in the mileage of said systems whenever provision has been made for the completion and maintenance of 90 per centum of the mileage of said systems previously authorized in accordance therewith.”

SEC. 8. This act may be cited as the "emergency construction and relief act of 1932."

[S. 4727, Seventy-second Congress, first session]

A BILL To amend the Reconstruction Finance Corporation act for the purpose of providing for employment through the construction of works of a national character, to provide funds therefor, and for other purposes

Whereas the United States is suffering an unprecedented depression, involving a serious state of general unemployment and consequent want and distress, and resulting in a dangerous diminution of production of goods and commodities moving in trade and commerce between the several States and with foreign nations: Therefore

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Reconstruction Finance Corporation act is hereby amended as follows:

Section 2 is amended by striking out the figures "$500,000,000" wherever used in such section and inserting in lieu thereof "$1,000,000,000." Section 3 is amended to read as follows:

"SEC. 3. The management of the corporation shall be vested in a board of directors consisting of the Secretary of the Treasury, or, in his absence, the Under Secretary of the Treasury, the governor of the Federal Reserve Board, and the Farm Loan Commissioner, who shall be members ex officio, and six other persons appointed by the President of the United States, by and with the advice and consent of the Senate. Of the nine members of the board of directors not more than five shall be members of any one political party and not more than one shall be appointed from any one Federal reserve district. Each director shall devote his time not otherwise required by the business of the United States principally to the business of the corporation. Before entering upon his duties each of the directors so appointed and each officer of the corporation shall take an oath faithfully to discharge the duties of his office. Nothing contained in this or in any other act shall be construed to prevent the appointment and compensation as an employee of the corporation of any officer or employee of the United States in any board, commission, independent establishment, or executive department thereof. The terms of the directors appointed by the President of the United States shall be two years and run from the date of the enactment hereof and until their successors are appointed and qualified. Whenever a vacancy shall occur among the directors so appointed, the person appointed to fill such vacancy shall hold office for the unexpired portion of the term of the director whose place he is selected to fill. The directors of the corporation appointed as hereinbefore provided shall receive salaries at the rate of $10,000 per annum each. No director, officer, attorney, agent, or employee of the corporation shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his personal interests, or the interests of any corporation, partnership, or association in which he is directly or indirectly interested."

There shall be inserted after section 5a and preceding section 6 the following section 5b:

"SEC. 5b. (1) The corporation is authorized, in the manner herein provided, to provide for the construction, repair, and renewal of post roads, and as necessary facilities therefor of bridges, tunnels, elevated roadways, canals, and other improvements of like character, for the improvement of navigation and for the construction, repair, and renewal of other works and objects of every character necessary or desirable in the regulation of commerce between the several States and with foreign nations, and for the construction, repair, and renewal of buildings in connection with or useful for any of the foregoing purposes, including houses and recreation facilities for employees to be employed thereon or for other persons inhabiting areas the housing facilities of which shall be limited or inadequate by reason of the presence of such employees, and for the construction, repair, and renewal of other public works. All such projects are hereinafter in this act referred to as the projects.

"(2) No project shall be undertaken until the board shall have approved the same, after such investigations, surveys, and estimates as it shall deem advisable. "(3) No project shall be undertaken until the board shall determine that such project is economically advisable; that such project may be made self-supporting and financially solvent by means of tolls, fees, rents, or other charges; and that such project will return to the corporation a net income after all operating expenses (including local taxes and a duly proportionate share of the overhead and general administration expenses of the corporation), sufficient to return to the corporation an amount equal to the amount expended by the corporation thereon with interest at 6 per centum per annum. The corporation shall apply annually its entire net income derived from such projects, after provision for general administration expenses to the payment of the interest and sinking fund of the obligations of the corporation issued for the construction of projects. In the event that in any year the amount of such net income so applied shall exceed the amount required for such interest and sinking fund payments, the board of directors will apply the balance to the retirement by purchase at less than par or by call by lot, under such regulation as such board may prescribe, of the obligations of the corporation issued for the construction of projects, with interest accrued to the date of retirement. In the event that in any year the amounts so applied shall be less than the amount required for such interest and sinking fund payments, the balance shall be paid by the Secretary of the Treasury as provided in section 9 of this act.

(4) There is created a cumulative sinking fund for the retirement of the obligations of the corporation issued under this act for the construction of projects. The sinking fund and all additions thereto are hereby set aside for the payment of such obligations at maturity or for the redemption or purchase thereof before maturity by the board of directors at such price and upon such terms and conditions as the board shall prescribe, and shall be available until all such obligations are retired. the average cost of such obligations retired shall not exceed par and accrued interest. Obligations purchased, redeemed, or paid out of the sinking fund shall be canceled and retired, and shall not be reissued. The sinking fund hereby created shall be set aside by the corporation in the Treasury.

(5) In determining the economic advisability of projects the board shall, where consistent with the purposes of this act, favor that project which will provide the maximum number of labor-hours to persons otherwise unemployed.

"(6) In determining the economic necessity of projects the board shall, where consistent with the purposes of this act, divide the same between the several States, giving due consideration to population, availability of unemployed labor. area, and all other relevant considerations.

"(7) In determining the economic necessity of projects, the board shall take into consideration such other factors as, in its opinion, will effectuate the purposes of this act.

"(8) Any agreement entered into by the corporation for the construction of projects shall provide, where possible, for a thirty-hour week for labor to be employed thereon.

(9) The board may let contracts to private individuals, partnerships, corporations, or associations, and may pay therefor in cash or in bonds issued hereunder at par. Where payment is made in the bonds, the Secretary of the Treasury will deliver the necessary bonds to the corporation upon demand therefor by the board, and the principal amount thereof shall be credited against the subscription by the United States to the stock of the corporation. All contracts shall be let to the lowest responsible bidder, and shall contain appropriate

provision to the end that after the completion of the project there shall be a review and readjustment of the cost thereof to the private contracting party on the basis that the private contracting party shall not in any event receive more than a reasonably limited percentage of profit above such cost.

(10) Any governmental establishment in the executive branch of the Government is authorized to, and at the direction of the President shall, act as agent of the corporation in the administration of the functions vested in it by this act. The corporation may, in cooperation with any such governmental establishment, avail itself of the services and facilities of such governmental establishment in order to avoid preventable expense or duplication of effort.

"(11) The President may, by Executive order, direct such governmental establishment to furnish the corporation with such information and data pertaining to the functions of the corporation as may be contained in the records of such governmental establishment. The order of the President may provide such limitations as to the use of the information and data as he deems advisable. "(12) The corporation may cooperate in any project with any State or Territory or any county, municipality, or any political subdivision thereof on the following basis: (1) That such State, Territory, county, municipality, or political subdivision thereof will deposit with the corporation as a guaranty fund its obligations determined by the corporation in its discretion to have a present value equal to 20 per centum of the estimated cost to the corporation of the project, in consideration of which the corporation will agree with any such State, Territory, county, municipality, or political subdivision thereof that in the event that the project shall return its cost to the corporation (including local taxes and a duly proportionate share of the overhead and general administration expenses of the corporation), plus interest thereon at 6 per centum per annum, plus a surplus profit equal to 10 per centum of such cost, the corporation will redeliver said obligations to such State, Territory, county, municipality, or political subdivision thereof, and will transfer and convey such project to such State, Territory, county, municipality, or political subdivision thereof, and all rights therein and thereto; and (2) that the State, Territory, county, municipality, or political subdivision thereof will further agree with the corporation that in the event that such project shall not return such cost or interest in full to the corporation, the State, Territory, county, municipality, or political subdivision thereof will pay to the corporation in turn the amount of the aggregate face value of such obligations plus accumulated interest thereon in an amount necessary to return to the corporation such cost and interest in full: Provided, That upon such return in full, such State, Territory, county, municipality, or political subdivision thereof shall have the option to acquire such project from the corporation upon payment to the corporation of a surplus profit equal to 10 per centum of such cost.

"(13) The corporation may cooperate in any project with any individual, partnership, or corporation on the following basis: (1) That such individual, partnership, or corporation will deposit with the corporation as a guaranty fund obligations of such individual, partnership, or corporation determined by the corporation in its discretion to have a present value of not less than 30 per centum of the estimated cost to the corporation of the project, in consideration of which the corporation will agree with such individual, partnership, or corporation that in the event that the project shall return its cost to the corporation (including local taxes and a duly proportionate share of the overhead and general administration expenses of the corporation), plus interest thereon at 6 per centum per annum, plus a surplus profit equal to 10 per centum of such cost, the corporation will redeliver said obligations to such individual, partnership, or corporation, and will transfer and convey such project to such individual, partnership, or corporation and all rights therein and thereto; and (2) that the individual, partnership, or corporation will further agree with the corporation that in the event that such project shall not return such cost or interest in full to the corporation, the individual, partnership, or corporation will pay to the corporation in turn the amount of the aggregate face value of such obligations plus accumulated interest thereon in an amount necessary to return to the corporation such cost and interest in full: Provided, That upon such return in full, such individual, partnership, or corporation shall have the option to acquire such project from the corporation upon payment to the corporation of a surplus profit equal to 10 per centum of such cost.

"(14) The corporation may also cooperate in any project with any individual, partnership, or corporation on the following basis: That such individual, partnership, or corporation will agree to pay to the corporation 50 per cent of the full cost of the project as above defined, or such greater portion thereof as maybe

agreed between the corporation and such individual, partnership, or corporation, such payment to be made in installments upon the call of the corporation as the work shall progress and in such a way that the corporation and such individual, partnership, or corporation shall each at the same time pay or cause to be paid its proportionate share thereof. Upon the completion of the project the corporation shall divide the net tolls, fees, rents, or other charges, after deducting local taxes and a duly proportionate share of the overhead and general expenses of the corporation attributable to the particular project, between itself and such individual, partnership, or corporation in the same proportion as they shall have respectively contributed to the cost of the project, until such time as the project shall have returned to the corporation its cost (including local taxes and a duly proportionate share of overhead and general administration expenses of the corporation), plus interest thereon at 6 per centum per annum, plus a surplus profit equal to 10 per centum of such cost. Thereupon the corporation shall transfer and convey such project to such individual, partnership, or corporation and all rights therein and thereto. If such individual, partnership, or corporation, after agreeing with the corporation as above provided, shall fail to pay any of the installments due under such agreement, the corporation shall at its option complete the project; when under such circumstances the corporation shall have completed the project and the project shall have returned its cost to the corporation (including local taxes and a duly proportionate share of overhead and general administration expenses of the corporation), plus interest thereon at 6 per centum per annum, plus a surplus profit equal to 10 per centum of such cost, the corporation shall, from time to time, pay over to such individual, partnership, or corporation, out of the net tolls, fees, rents, or other charges, if any, derived from the project amounts equal to the aggregate amounts of the installments previously paid to the corporation under such agreement by such individual, partnership, or corporation."

Section 9 is amended to read as follows:

"SEC. 9. The corporation is authorized and empowered, with the approval of the Secretary of the Treasury, to issue, and to have outstanding at any one time in an amount aggregating not more than three times its subscribed capital, its notes, debentures, bonds, or other such obligations; such obligations to mature not more than five years from their respective dates of issue, except as hereinafter provided, to be redeemable at the option of the corporation before maturity in such manner as may be stipulated in such obligations, and to bear such rate or rates of interest as may be determined by the corporation: Provided, That the corporation, with the approval of the Secretary of the Treasury, may sell on a discount basis short-term obligations payable at maturity without interest: Provided further, That its notes, debentures, bonds, or other obligations which shall be issued for the purposes of financing the construction of projects as provided by section 5b of this act shall mature at such time or times as the board of directors of the corporation shall determine and shall carry a cumulative sinking fund calculated to retire all such obligations at or before maturity. The notes, debentures, bonds, and other obligations of the corporation may be secured by assets of the corporation in such manner as shall be prescribed by its board of directors: Provided further, That the aggregate of all obligations issued under this section shall not exceed three times the amount of the subscribed capital stock. Obligations of the corporation of the aggregate face amount of $1,500,000,000 and $500,000,000 of the amount subscribed by the United States of America for the stock of the corporation shall not be used for purposes other than, and shall be available for, financing the construction of projects as provided by section 5b of this act, including local taxes thereon and a duly proportionate share of the overhead and general administration expenses of the corporation attributable to such projects. Such obligations as shall be issued for purposes other than those described in section 5b of this act may be issued in payment of any loan authorized by this act. Any obligations of the corporation issued pursuant of the provisions of this act may be offered for sale at such price or prices as the corporation may determine with the approval of the Secretary of the Treasury. The said obligations shall be fully and unconditionally guaranteed both as to interest and principal by the United States and such guaranty shall he expressed on the face thereof. In the event that the corporation shall be unable to pay upon demand, when due, the principal of or interest on notes, debentures, bonds, or other such obligations issued by it, the Secretary of the Treasury shall pay the amount thereof, which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amounts so paid the Secretary of the Treasury shall succeed to all