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1927. Interdepartmental procurement of war supplies.—That the heads of the several executive departments and other responsible officials, in expending appropriations contained in this or any other Act, so far as possible shall purchase material, supplies, and equipment, when needed and funds are available, from other services of the Government possessing material, supplies, and equipment no longer required because of the cessation of war activities. It shall be the duty of the heads of the several executive departments and other officials, before purchasing any of the articles described herein, to ascertain from the other services of the Government whether they have articles of the character described that are serviceable. And articles purchased by one service from another, if the same have not been used, shall be paid for at a reasonable price not to exceed actual cost, and if the same have been used, at a reasonable price based upon length of usage. The various services of the Government are authorized to sell such articles under the conditions specified, and the proceeds of such sales shall be covered into the Treasury as a miscellaneous receipt: Provided, That this section shall not be construed to amend, alter, or repeal the Executive order of December 3, 1918, concerning the transfer of office material, supplies, and equipment in the District of Columbia falling into disuse because of the cessation of war activities. Sec. 5, act of July 11, 1919 (41 Stat. 67); 40 U. 8. C. 311.

Provided, That the Executive order of December 3, 1918, shall apply to all materials, supplies, and equipment now or hereafter becoming surplus or unusable in any executive department or independent Government establishment in the District of Columbia, and shall continue in effect hereafter without modifcation, except that the prices charged for reissued surplus materials, supplies, and equipment shall be the estimated current market value at time of issue, and that the proceeds from the transfer of appropriations thereunder shall be covered into the Treasury as miscellaneous receipts : Provided further, That the heads of the executive departments and independent establishments and the Commissioners of the District of Columbia hereafter shall cooperate with the Secretary of the Treasury in connection with the storage and delivery of material, supplies, and equipment transferred under the foregoing provisions :

Title 1, act of Dec. 20, 1928 (45 Stat. 1030); 40 U. 8. O. 311a.

A provision similar to last proviso, but without the word "hereafter," has appeared in prior appropriation acts.

Sec. 6, act of Feb. 25, 1929 (45 Stat. 1299), directs that the officials of the District of Columbia shall, so far as possible, purchase material and supplies from the various services of the Government of the United States.

1928. Procurement of military supplies; advertising requirements.— * * Provided further, That hereafter, except in cases of emergency or where it is impracticable to secure competition, the purchase of all supplies for the use of the various departments and posts of the Army and of the branches of the Army service shall only be made after advertisement, and shall be purchased where the same can be purchased the cheapest, quality and cost of transportation and the interests of the Government considered ; * Act of Mar. 2, 1901 (31 Stat. 905); 10 U. 8. C. 1201.

Hereafter the purchase of supplies and the procurement of services for all branches of the Army service may be made in open market, in the manner common among businessmen, when the aggregate of the amount required does not exceed five hundred dollars; but every such purchase exceeding one hundred dollars shall be promptly reported to the Secretary of War for approval, under such regulations as he may prescribe. Act of June 12, 1906 (34 Stat. 258); 10 U. S. C. 1205.

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Provided, That hereafter section 3709, Revised Statutes (U. S. C., title 41, sec. 5), shall not apply to any procurement under this appropriation which does not exceed $25 in amount Title 1, act of Apr. 9, 1935 (49 Stat. 122). For R. S. 3709, see 727, ante.

1929. Procurement of military supplies; bids.—That the Secretary of War is 2 bereby authorized to prescribe rules and regulations to be observed in the prepara* tion and submission and opening of bids for contracts under the War Depart

* * * Act of Apr. 10, 1878 (20 Stat. 36); act of Mar. 3, 1883 (22 Stat. 487); 5 U. S. C. 218.

1930. Procurement of military supplies; compulsory orders.-The President, in time of war or when war is imminent, is empowered, through the head of any department of the Government, in addition to the present authorized methods of purchase or procurement, to place an order with any individual, firm, association,

company, corporation, or organized manufacturing industry for such product or bir material as may be required, and which is of the nature and kind usually pro

duced or capable of being produced by such individual, irm, company, association, corporation, or organized manufacturing industry.

Compliance with all such orders for products or material shall be obligatory on

any individual, firm, association, company, corporation, or organized manufacturprising industry, or the responsible head or heads thereof, and shall take precedence

over all other orders and contracts theretofore placed with such individual, firm, sa company, association, corporation, or organized manufacturing industry, and any de individual, firm, association, company, corporation, or organized manufacturing

industry, or the responsible head or heads thereof, owning or operating any plant is equipped for the manufacture of arms or ammunition, or parts of ammunition, stanyes or any necessary supplies or equipment for the Army, and any individual, firm, *23 association, company, corporation, or organized manufacturing industry, or the iss responsible head or heads thereof, owning or operating any manufacturing plant,

which, in the opinion of the Secretary of War, shall be capable of being readily

transformed into a plant for the manufacture of arms or ammunition, or parts 92 thereof, or other necessary supplies or equipment, who shall refuse to give to the

United States such preference in the matter of the execution of orders, or who shall refuse to manufacture the kind, quantity, or quality of arms or ammunition, or the parts thereof, or any necessary supplies or equipment, as ordered by the Secretary of War, or who shall refuse to furnish such arms, ammunitions, or parts of ammunition, or other supplies or equipment, at a reasonable price as determined by the Secretary of War, then, and in either such case, the President, through the head of any department of the Government, in addition to the present authorized methods of purchase or procurement herein provided for, is hereby authorized to take immediate possession of any such plant or plants, and through the Ordnance Department of the United States Army to manufacture therein in time of war, or when war shall be imminent, such product or material as may be required; and any individual, firm, company, association, or corporation, or organized manufacturing industry, or the responsible head or heads thereof, failing to comply with the provisions of this section shall be deemed guilty of a felony, and upon conviction shall be punished by imprisonment for not more than three years and by a fine not exceeding $50,000.

The compensation to be paid to any individual, firm, company, association, corporation, or organized manufacturing industry for its products or material, or as rental for use of any manufacturing plant while used by the United States, shall be fair and just.

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The Secretary of War shall also make, or cause to be made, a complete list of all privately owned plants in the United States equipped to manufacture arms or ammunition, or the component parts thereof. He shall obtain full and complete information regarding the kind of arms or ammunition, or the component parts thereof, manufactured or that can be manufactured by each such plant, the equipment in each plant, and the maximum capacity thereof. He shall also prepare or cause to be prepared, a list of privately owned manufacturing plants in the United States capable of being readily transformed into ammunition factories, where the capacity of the plant is sufficient to warrant transforming such plant or plants into ammunition factories in time of war or when war shall be imminent; and as to all such plants the Secretary of War shall obtain full and complete information as to the equipment of each such plant, and he shall prepare comprehensive plans for transforming each such plant into an ammunition factory, or a factory in which to manufacture such parts of ammunition as in the opinion of the Secretary of War such plant is best adapted.

The President is hereby authorized, in his discretion, to appoint a Board of Mobilization of Industries Essential for Military Preparedness, nonpartisan in character, and to take all necessary steps to provide for such clerical assistance as he may deem necessary to organize and coordinate the work hereinbefore described. Sec. 120, act of June 3, 1916 (39 Stat. 213); 50 U. 8. C. 80.

Notes of Decisions Power of President.-Government could domain held not to operate as revocation not repudiate Secretary of War's authority of license of another corporation to with to requisition, for purposes of defense dur- | draw water from canal, as respects corpora. ing war, corporation's entire water power tion's right to compensation for such taking. because not authorized by Congress. Inter- | Id. national Paper Co. v. U. S. (1931), 282 U. S. Performance of contracts.-United States 399, reversing (1930), 68 Ct. Cl. 414.

Shipping Board Emergency Fleet CorporaCompensation. -— Government's acquisition tion held personally and solely liable on setof corporation's entire water power held tlement of contracts for construction of "taking" under power of eminent domain, ships, and Government need not be joined where all agreements were on basis that in suit thereon. Harwood v. U. 8. Shipping Government made obligatory requisition. Board Emergency Fleet Corp. (C. C. A, International Paper Co. v. U. S. (1931), 282 1929), 32 F. (20) 680, reversing (D, C., U. S. 399, reversing (1930), 68 Ct. Cl. 414. 1928), 26 F. (20) 116, and affirmed by

Government's taking of corporation's en-(1930), 281 U. S. 519. tire water power under power of eminent

1931. Procurement of military supplies; Government manufacture.-He shall cause to be manufactured or produced at the Government arsenals or Government-owned factories of the United States all such supplies or articles needed by the War Department as said arsenals or Government-owned factories are capable of manufacturing or producing upon an economical basis. Sec. 5a, added to the act of June 3, 1916, by sec. 5, act of June 4, 1920 (41 Stat. 765); 10 U. 8. C. 1195.

That all orders or contracts for the manufacture of material pertaining to approved projects heretofore or hereafter placed with Government-owned establishments shall be considered as obligations in the same manner as provided for similar orders placed with commercial manufacturers, and the appropriations shall remain available for the payment of the obligations so created as in the case of contracts or orders with commercial manufacturers. Act of June 5, 1920 (41 Stat. 975); 41 U. S. C. 23.

The section from which the first paragraph is taken provides for the duties of the Assistant Secretary of War with reference to the procurement of military supplies. See 897, ante.

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1932. Procurement of military supplies; designation by name of contractor. Every person who shall furnish supplies of any kind to the Army or Navy shall be required to mark and distinguish the same with the name of the contractor furnishing such supplies in such manner as the Secretary of War and the Secretary of the Navy may, respectively, direct; and no supplies of any kind shall be received unless so marked and distinguished. R. 8. 3731; 10 U. 8. C. 1207; 34 U. 8. C. 583.

1933. Procurement of military supplies; preference for domestic production.The Quartermaster's Department of the Army, in obtaining supplies for the military service, shall state in all advertisements for bids for contracts that a preference shall be given to articles of domestic production and manufacture, conditions of price and quality being equal, and that such preference shall be given to articles of American production and manufacture produced on the Pacific coast, to the extent of the consumption required by the public service there. In advertising for Army supplies the Quartermaster's Department shall require all articles which are to be used in the States and Territories of the Pacific coast to be delivered and inspected at points designated in those States and Territories and the advertisements for such supplies shall be published in newspapers of the cities of San Francisco, in California, and Portland, in Oregon. R. S. 3716; 10 U. 8. O. 1202. For “Buy American Act," see 742, ante.

1934. Procurement of military supplies; reserve stocks.--* Provided further, That hereafter funds appropriated for support of the Army may be used for the procurement of supplies to be held in store for issue to the Army during subsequent fiscal years : *. Sec. 1, act of Mar. 4, 1915 (38 Stat, 1078); 31 U. S. C. 654. 1935. Procurement of military supplies from Department of Agriculture.

Provided, That the Secretary of Agriculture is authorized to transfer to any Government department or establishment or to local authorities or institutions such property and/or equipment.

Sec. 1, act of July 7, 1932 (47 Stat. 614); U. S. C. 8869.

The property referred to is that pertaining to experiment stations maintained by the Department of Agriculture in Alaska, Guam, and the Virgin Islands.

1936. Procurement of military supplies from Department of Justice.-That the inmates of said institution shall be employed in such manner and under such condition as the Attorney General may direct. The Attorney General may, in his discretion, establish industries, plants, factories, or shops for the manufacture of articles, commodities, and supplies for the United States Government; require any department or establishment of the United States to purchase at current market prices, as determined by the Attorney General or his authorized representatives, such articles, commodities, or supplies as meet their specifications.

Sec. 5, act of May 13, 1930 ( 46 Stat. 271); 18 U. S. C. 875.

The Attorney General may, in his discretion, establish industries, plants, factories, or shops for the manufacture of articles, commodities, and supplies for the United States Government; and the several Federal departments and all other Government institutions of the United States shall purchase at not to exceed current market prices such products of the industries herein authorized to be carried on as meet their requirements and as may be available and are authorIzed by the appropriations from which such purchases are made. Any disputes as to the price, quality, suitability, or character of the products manufactured in any prison industry and offered to any Government department shall be arbitrated by a board consisting of the Comptroller General of the United States, the Superintendent of Supplies of the General Supply Committee, and the Chief of the United States Bureau of Efficiency, or their representatives. The decision of said board shall be final and binding upon all parties.

Sec. 6, act of May 27, 1930 (46 Stat. 389); 18 U.S. C. 906.

The Attorney General shall establish such industries as will produce articles and commodities for consumption in United States penal and correctional institutions, or for sale to the departments and independent establishments of the Federal Government and not for sale to the public in competition with private enterprise: Provided, That any industry established under authority of this Act be so operated as not to curtail the production within its present limits, of any existing arsenal, navy yard, or other Government workshop.

Sec. 3, act of May 27, 1930 (46 Stat. 391); 18 U. S. C. 7440.

The several Federal departments and independent establishments and all other Government institutions of the United States shall purchase at not to exceed cur. rent market prices such products of the industries herein authorized to be carried on as meet their requirements and as may be available and are authorized by the appropriations from which such purchases are made. Any disputes as to the price, quality, suitability, or character of the products manufactured in any prison industry and offered to any Government department shall be arbitrated by a board consisting of the Comptroller General of the United States, the Superintendent of Supplies of the General Supply Committee, and the Chief of the United States Bureau of Efficiency, or their representatives. The decision of said board shall be final and binding upon all parties. Sec. 7, act of May 27, 1930 (46 Stat. $92); 18 U. 8. C. 7449.

The first paragraph, supra, is from an act establishing a hospital for defective delinquents.

The second paragraph is from an act establishing two institutions for the confinement of United States prisoners; the second and third paragraphs from an act providing for diversification of employment of Federal prisoners generally.

The duty of determining in what manner and to what extent industrial operations shall be carried on in Federal penal and correctional institutions was transferred to a Government corporation to be known as “Federal Prison Industries" by act of June 23, 1934 (48 Stat. 1211). The corporation was established by Executive Order No. 6917, December 11, 1934, as amended by Executive Order No. 6956, February 4, 1935.

Commodities manufactured in Federal penal and correctional institutions for use by the Federal Government are expressly excepted from the provisions of the act of July 24, 1935 (49 Stat. 494), prohibiting the interstate transportation of prison-made products in certain cases.

1937. Procurement of military supplies from District of Columbia Reformatory.-* * The various departments and institutions of the District of Columbia and the Federal Government may purchase, at fair market prices, as determined by the commissioners, such industrial or farm products (surplus products and services] as meet their requirements.

Sec. 1, act of Feb. 25, 1929 (45 Stat. 1290), making appropriations for the District of Columbia.

A similar provision has appeared in prior and subsequent appropriation acts.

1938. Procurement of military supplies from Indians.-The Secretary of War is hereby authorized and directed when making purchases for the military posts or service on or near Indian reservations to purchase in open market, from the Indians as far as practicable, at fair and reasonable rates, not to exceed the market prices in the localities, any cattle, grain, hay, fuel, or other produce or merchandise they may have for sale and which may be required for the military service. Sec. 4, act of Jan. 19, 1891 (26 Stat. 721); 10 U. S. O. 1211.

1939. Procurement of military supplies from Navy Department.—The interchange, without compensation therefor, of military stores, supplies, and equipment of every character, including real estate owned by the Government, is

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