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SENATE

71ST CONGRESS

2d Session

REPORT No. 867

SETTLEMENT OF CLAIMS ARISING UNDER TRANSPOR

TATION ACT OF 1920

JUNE 9, 1930.-Ordered to be printed

Mr. COUZENS, from the Committee on Interstate Commerce, sub

mitted the following

REPORT

(To accompany S. 4254]

Your Committee on Interstate Commerce, to which was referred S. 4254, a bill to provide for the compromise and settlement of claims held by the United States of America arising under the provisions of section 210 of the transportation act, 1920, as amended, herewith reports the bill with amendments and as amended recommends that the bill be passed.

The amendments recommended by your committee are as follows:

1. On page 1, line 9, strike out the word “approval” and insert in lieu thereof the word "concurrence";

2. On page 3, line 2, substitute a period for the semicolon after the word “United States” and strike out the remainder of line 2 and all of lines 3, 4, 5, 6, 7, 8, 9, 10, and down to and including the period after the figures “1920” in line 11.

The purpose of this legislation is to give the Secretary of the Treasury, with the concurrence of the Interstate Commerce Commission, discretionary power, where debtor carriers are in the hands of receivers, to compromise or exchange any indebtedness arising out of section 210 loans. The bill has the approval of the Interstate Commerce Commission and as amended has the approval of the Secretary of the Treasury. Your committee submitted the bill to the Interstate Commerce Commission and has a report from the commission which is herewith made a part of this report. The committee also makes as a part of this report a letter from the Undersecretary of the Treasury.

SR-71-2-VOL 2-59

WASHINGTON, May 28, 1930. Hon. James COUZENS, Chairman Committee on Interstate Commerce,

United States Senate. MY DEAR SENATOR Couzens: For the Secretary, receipt is acknowledged of your letter dated May 8, 1930, inclosing a copy of S. 4254, a bill to provide for the compromise and settlment of claims held by the United States of America arising under the provisions of section 210 of the transportation act, 1920, as amended.

Under the law as it now stands no course of procedure is provided for the Government in cases where under section 210 of the transportation act, 1920, carriers have received from the Government advances which because of circumstances arising since the making of the loan can not be repaid. The Treasury considers the bill submitted by you provides a satisfactory procedure for meeting the situation.

In the judgment of the department, however, those provisions of the bill authorizing further advances by the Government should be eliminated. Even if cases should arise where solely from the investment standpoint additional advances would be justified, the Government should not use such occasions for prolonging the period during which its moneys are invested in railroad properties, but wherever compromise is necessary, should liquidate its claim at the best possible cash figure. Very truly yours,

OGDEN L. Mills, Undersecretary of the Treasury.

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INTERSTATE COMMERCE COMMISSION,

Washington, May 19, 1930. Hon. James CouZENS, Chairman Committee on Interstate Commerce,

United States Senate. MY DEAR SENATOR: The chairman of the commission has referred to our legislative committee your request for a report on S. 4254, introduced by Senator Smoot April 21, 1930, “To provide for the compromise and settlement of claims held by the United States of America arising under the provisions of section 210 of the transportation act, 1920, as amended.” The legislative committee has given careful consideration to this bill, and I am authorized to make the following report in its behalf:

S. 4254 is designed to give the Secretary of the Treasury discretionary power, where debtor carriers are in the hands of receivers, to compromise or exchange any indebtedness arising out of section 210 loans, either with such receivers, reorganization committees or reorganized companies, and to purchase or subscribe to securities to the extent required or permitted by the terms of the reorganization plan.

It is provided that the authority of the Secretary of the Treasury shall be subject to the approval of the commission.

It is further provided that the revolving fund created by section 210 shall be available to meet any payments required to be made under any agreement pursuant to such authority,

The Attorney General has heretofore held that no officer of the Government is authorized to compromise claims of the United States under section 210. In view of situations which may arise, it appears highly desirable that some one should have such authority as is carried by the proposed bill, and in general it has our approval.

We would suggest that the word "concurrence" be substituted for the word “approval" in line 9 of sheet 1 as more aptly expressing the function of the commission in respect of matters arising initially with the Treasury as to existing loans.

The provisions in the last paragraph of sheet 3 authorizing participation in reorganizations by contributions in cash present a matter of policy intimately concerning the Secretary of the Treasury. Doubtless he has been or will be asked to express an opinion.

A statement is attached showing the net indebtedness, both as to principal and interest, for each of the outstanding loans under section 210, and the extent to which there has been a default upon such indebtedness.

Commissioner Farrell believes that the proposed connection of the Interstate Commerce Commission, which is in the legislative branch of the Government, with functions to be performed by the Secretary of the Treasury, who is in the executive branch of the Government, concerning matters covered by the bill, is not advisable. He wishes it made clear, however, that this objection should not be taken as a view on his part that the Secretary of the Treasury should not be empowered to make the settlements, agreements, etc., provided for in the bill. Respectfully submitted.

Joseph B. EASTMAN, Chairman Legislative Committee.

Status of outstanding loans to carriers made under section 210, transportation

act, 1920

Carrier

Amount outstanding

Principal
in default

Interest in
in default

Total in in default

$46, 099. 37

$129, 808. 23

129, 808. 23

5, 259. 84 22, 906. 05 23, 700.00

!!! Tiiiii

Alabama, Tennessee & Northern..
Aransas Harbor Terminal.
Boston & Maine..
Charles City Western..
Chicago & Western Indiana.
Des Moines & Central Iowa.
Fernwood, Columbia & Gull..
Fort Dodge. Des Moines & Southern.
Gainesville & Northwestern
Georgia & Florida..
Greene County.
Minneapolis & St. Louis.
Missouri & North Arkansas.
Salt Lake & Utah.
Seaboard Air Line...-
Shearwood.
Toledo St. Louis & Western.
Virginia Blue Ridge...
Virginia Southern.
Waterloo, Cedar Falls & Northern.
Wheeling & Lake Erie..
Wichita Northwestern...
Wilmington, Brunswick & Southern..

5, 259. 84 97, 906. 05 23, 760.00

$179,000.00

46,099. 37 $46, 099. 37 13, 943, 000.00

140,000.00 6, 510,000.00 633,500.00

20,000.00 200,000.00

75,000.00 75,000.00 792, 000.00

12,000.00 11, 658, 200, 64 3, 500,000.00

872, 600.00 78,500.00
? 16, 445, 887. 84

12, 456. 76 2, 456.76
324, 000.00
106,000.00 106,000.00

38,000.00
1, 260,000.00
* 2, 362, 595. 26

381, 750.00
90,000.00 90,000.00

558, 527.00
1,040, 154. 21

287, 902. SO

559, 527.00 1, 040, 154. 21

366, 402. 80

2, 456.76

25, 440,00 13, 104. 57 637, 343. 89

131, 440.00

13, 104. 57 637, 343. 89

137, 430.00

137, 430.00 90, 000.00

49, 502, 089. 87 | 398, 056. 13 2,881, 636. 59 3, 279, 692.72

1 Includes $276,200.64 loaned through National Railway Service Corporation.
? Includes $2,002,000 loaned through Seaboard Bay Line Co.
3 Loaned through National Railway Service Corporation.

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71ST CONGRESS

ed Session

SENATE

{

REPORT No. 868

BRIDGE ACROSS THE CHOCTAWHATCHEE RIVER, FREE

PORT, FLA.

JUNE 9, 1930.-Ordered to be printed

Mr. Dale, from the Committee on Commerce, submitted the following

REPORT

[To accompany S. 4585)

The Committee on Commerce, to whom was referred the bill (S. 4585), authorizing the State of Florida, through its highway department, to construct, maintain, and operate a free highway bridge across the Choctawhatchee River, near Freeport, Fla., having considered the same, report favorably thereon, and recommend that the bill do pass without amendment.

The bill has the approval of the Departments of War and Agriculture, as will appear by the annexed communications, which are made a part of this report.

WAR DEPARTMENT, June 2, 1930. Respectfully returned to the chairman Committee on Commerce, United States Senate.

So far as the interests committed to this department are concerned, I know of no objection to the favorable consideration of the accompanying bill (S. 4585, 71st Cong., 2d sess.) authorizing the State of Florida, through its highway department, to construct a free highway bridge across the Choctawhatchee River, near Freeport, Fla.

F. TRUBEE Davison,

Acting Secretary of War.

DEPATMENT OF AGRICULTURE,

Washington, D. C., June 6, 1930. Hon. HIRAM W. Johnson,

Chairman Committee on Commerce, United States Senate. DEAR SENATOR: Receipt is acknowledged of your letter of May 28, transsmitting a copy of a bill (S. 4585) with the request that the committee be furnished with such suggestions touching its merits and the propriety of its passage as the department might deem appropriate.

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