going to hope that they will not try to use up all the time for one commodity. We should get a picture of the whole problem.

Are there any further questions, gentlemen, before we start?

Senator BENTON. Mr. Chairman, it was my understanding that we decided not to have any witnesses on commercial rent control, but that we did not reach any decision about whether the subject of commercial rents would constitute part of the hearing.

The CHAIRMAN. We only reached a decision that after we got through the present bill and present law we would then take it up if we decided to take it up, but everyone would be permitted to file a statement on the subject matter, and we are not going to schedule any witnesses unless we deem it advisable to do so after the hearings are finished on the present bill.

If there is nothing further, we will begin the hearings.

I want the record to show the statement that I have made and the bill that I have introduced, S. 1397. It is not necessary for me to read the statement. I introduced this bill by request. All amendments submitted to the Senate and referred will be printed in the appendix to this volume.

(The bill referred to follows:)

[S. 1397, 82d Cong., 1st sess.]

A BILL To amend the Defense Production Act of 1950, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Defense Production Act Amendments of 1951".

TITLE I-AMENDMENTS TO DEFENSE PRODUCTION ACT OF 1950

PRIORITIES AND ALLOCATIONS

SEC. 101. Section 102 of the Defense Production Act of 1950 (Public Law 774, Eighty-first Congress) is amended by striking out the third sentence and inserting in lieu thereof the following sentences: "In making such designations the President may prescribe such conditions and exceptions with respect to the accumulation of materials in excess of the reasonable demands of business, personal, or home consumption as he deems necessary to carry out the objectives of this Act. This section shall not be construed to limit the authority contained in sections 101 and 704 of this Act."

AUTHORITY TO REQUISITION AND CONDEMN

SEO. 102. (a) Title II of the Defense Production Act of 1950 is amended by adding to the heading thereof the words "AND CONDEMN".

(b) The first sentence of subsection (b) of section 201 of the Defense Production Act of 1950 is amended by striking out the word "title" and inserting in lieu thereof the word "section".

(c) Title II of the Defense Production Act of 1950 is furthre amended by adding at the end thereof the following new subsection:

"SEC. 202. Whenever the President deems it necessary in the interest of national defense, he may acquire by purchase, donation, or other means of transfer, or may cause proceedings to be instituted in any court having jurisdiction of such proceedings to acquire by condemnation, any real property, including facilities, temporary use thereof, or other interest therein, together with any personal property located thereon or used therewith, that he deems necessary for the national defense, such proceedings to be in accordance with the Act of August 1, 1888 (25 Stat. 357), as amended, or any other applicable Federal statute. Upon or after the filing of the condemnation petition, immediate possession may be taken and the property occupied, used, and improved for the purpose of this Act, notwithstanding any other law. Property acquired by purchase, donation, or other means of transfer may be occupied, used, and improved, for the purposes of this section prior to the approval of title by the Attorney General as required by section 355 of the Revised Statutes, as amended."

EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY

"SEC. 103. (a) Section 303 of such Act is amended to read as follows: "SEC. 303. (a) To assist in carrying out the objectives of this Act, the President may make provision (1) for purchases of or commitments to purchase metals, minerals, and other materials, for Government use or resale; and (2) for the encouragement of exploration, development, and mining of critical and strategic minerals and metals: Provided, however, That purchases for resale under this subsection shall not include that part of the supply of an agricultural commodity which is domestically produced except insofar as such domestically produced supply may be purchased for resale for industrial uses or stockpiling, and no domestically produced agricultural commodity purchased under this subsection shall be sold at less than the established ceiling price for such commodity, or, if no ceiling price has been established, the higher of the following: (i) the current domestic market price for such commodity, or (ii) the minimum sale price established for agricultural commodities owned or controlled by the Commodity Credit Corporation as provided in section 407 of Public Law 439, Eightyfirst Congress.

"(b) Subject to the limitations in subsection (a), purchases and commitments to purchase and sales under such subsection may be made without regard to the limitations of existing law, for such quantities, and on such terms and conditions, including advance payments, and for such periods, as the President deems necessary, except that purchases or commitments to purchase involving higher than established ceiling price (or if there be no established ceiling prices, currently prevailing market prices) or anticipated loss on resale shall not be made unless it is determined that supply of the materials could not be effectively increased at lower prices or on terms more favorable to the Government, or that such purchases are necessary to assure the availablity to the United States of overseas supplies.

"(c) If the President finds

"(1) that under generally fair and equitable ceiling prices for any material, there will result a decrease in supplies from high-cost sources of such material, and that the continuation of such supplies is necessary to carry out the objectives of the Act: or

"(2) that under ceilings on products resulting from the processing of agricultural commodities, including livestock. which allow a generally fair and equitable margin for such processing, certain high-cost processors will be unable to maintain production, and that continued supplies from such processors are necessary to carry out the objectives of the Act; or

"(3) that an increase in cost of production, distribution, or transportation is temporary in character and threatens to impair maximum production or supply in any area at stable prices of any materials,

he may make provision for subsidy payments on any domestically produced material in such amounts and in such manner (including purchases of such material and its resale at a loss without regard to the limitations of existing law), and on such terms and conditions, as he determines to be necessary to insure that supplies from such high-cost sources or processors are continued, or that maximum production or supply in such area, at stable prices of such materials is maintained, as the case may be.

"(d) The procurement power granted to the President by this section shall include the power to transport and store, and have processed and refined, any materials procured under this section.

"(e) When in his judgment it will aid the national defense, the President is authorized (1) to acquire by purchase, donation, condemnation, or other means of transfer any real property, including facilities, or other interests therein, and to erect and construct plants, factories, and other industrial facilities for the purposes of manufacturing, producing, and processing materials necessary to the national defense and to engage in the marketing, transportation, and storage of such materials; (2) to install additional equipment, facilites, and processes in, and to construct additions and improvements to, plants, factories, and other industrial facilities owned by the United States Government; (3) to operate, lease, license or otherwise arrange for the use by others of such plants, factories, and industrial facilities; and (4) to install Government-owned equipment, facilities, and processes in plants, factories, and other industrial facilities owned by private persons. practicable, a fair charge shall be made for the use of others by GovernmentTo the fullest extent the President deems

owned property, facilities, and processes under the authority of this subsection, in order to reimburse the Government for the cost incurred by it."

(b) Subsection (a) of section 304 of the Defense Production Act of 1950 is amended by striking out the words "other than" and inserting in lieu thereof the word "including."

(c) The presently designated subsection (b) of section 304 of the Defense Production Act of 1950 is amended by striking out the period at the end of the first sentence and inserting in lieu thereof the following: "plus such additional amounts as may be fixed from time to time in appropriation Acts."

(d) Section 304 of the Defense Production Act of 1950 is further amended by redesignating subsection (b) as subsection (c), by striking out the presently designated subsection (c) and by inserting the following new subsection: "(b) Any corporation created under this section

"(1) shall have the power to sue and be sued, but any litigation involving such corporation shall be subject to the provisions of section 706 (b) of this Act; to acquire, hold, and dispose of property; to use its revenues; to determine the character of and necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, paid, and accounted for subject to laws specifically applicable to Government corporations; and to exercise such other powers as may be necessary or appropriate to carry out the purposes of such corporation;

"(2) shall have its powers set out in a charter, which shall be published in the Federal Register, and all amendments to which shall be similarly published;

"(3) shall not have succession beyond the limitation contained in section 716 of this Act, unless its life is extended beyond such date pursuant to Act of Congress; and

"(4) shall be subject to the Government Corporation Control Act to the same extent as wholly owned Government corporations listed in section 101 of the said Act: Provided, however, That the requirements of said Act for the transmittal of a budget program to the Congress shall take effect with respect to the first fiscal year commencing more than three months after the creation of such corporation."

PRICE AND WAGE STABILIZATION

SEC. 104. (a) Paragraph (3) of subsection (d) of section 402 of the Defense Production Act of 1950 is amended by striking out the third sentence and inserting in lieu thereof the following sentences: "Whenever a ceiling has been established under this title with respect to any agricultural commodity, or any commodity processed or manufactured in whole or in substantial part therefrom, the President, from time to time, shall adjust such ceiling in order to make appropriate allowances for substantial reduction in merchantable crop yields, unusual increases in costs of production, and other factors which result from hazards occurring in connection with the production and marketing of such agricultural commodity. In establishing, maintaining, or adjusting a ceiling under this title, the President shall consider as being included in the price received by producers of any agricultural commodity any payments made under the authority of section 303 of this Act in connection with that commodity to or for the benefit of such producers."

(b) Paragraph (3) of subsection (d) of section 402 of the Defense Production Act of 1950 is further amended by striking out the last sentence and inserting in lieu thereof the following sentences: "Whenever the Secretary of Agriculture finds that the minimum ceiling prices prescribed herein to producers for milk used for distribution as fluid milk in any marketing area not under a marketing agreement or order issued under the Agricultural Marketing Agreement Act of 1937, as amended, are not reasonable in view of the price of feeds, the available supplies of feeds, and other economic conditions which affect the market supply and demand for milk and its products in any such marketing area, he shall determine such price as he finds will reflect such factors, insure a sufficient quantity of pure and wholesome milk, and be in the public interest, and no ceiling price shall be below the price so determined. For the purposes of this subsection the parity price of any agricultural commodity as of any date shall be the parity price of such commodity as of the beginning of the then current marketing year or season for the commodity, except that in the event that the marketing year or season then current commenced prior to June 1, 1951, such parity price as of any date during such year or

season shall be the parity price for the commodity published by the Secretary of Agriculture on May 29, 1951. The marketing year or season for a commodity shall be determined by the Secretary of Agriculture; and, in the case of a commodity which the Secretary determines is not marketed on a marketing year or season basis, shall be the calendar year."

(c) Paragraph (v) of subsection (e) of section 402 of the Defense Production Act of 1950 is amended to read as follows:

"(v) Rates charged by any common carrier or other public utility whose proposed increase in any rate or charge is subject to control by a Federal, State, municipal, or other public regulatory authority exercising jurisdiction to approve or disapprove proposed increases in such rates or charges: Provided, That no such common carrier or other public utility shall at any time after the President shall have issued any stabilization regulations and orders under subsection (b) make any increase in any rate or charge, whether by change in rate, fare, charge, rule, classification, regulation, or otherwise, unless on or before the date on which it files with a regulatory authority an application for, or a proposal which will result in, such an increase, or not less than thirty days before such increase is to become effective, whichever date is earlier, it notifies the President, or such agency as he may designate, and consents to the timely intervention by such agency before the governmental authority having jurisdiction to consider such increase: And provided further, That the President may provide by regulation exemptions from the notice and consent to intervention requirements contained in this paragraph upon a finding that such action will not be inconsistent with the effectuation of the purposes of this title."

(d) Section 404 of the Defense Production Act of 1950 is amended by striking out the period at the end thereof and inserting in lieu thereof the following: ", including representatives of businessmen, farmers, workers, and consumers." (e) Subsection (a) of section 405 of the Defense Production Act of 1950 is amended by adding at the end thereof the following: "The President shall also prescribe the extent to which any payment made, either in money or property, by any person in violation of any such regulation, order, or requirement shall be disregarded by the executive departments and other governmental agencies in determining the costs or expenses of any such person for the purposes of any other law or regulation, including bases in determining gain for tax purposes." (f) Subsection (a) of section 409 of the Defense Production Act of 1950 is amended to read as follows:

"(a) Whenever in the judgment of the President any person has engaged or is about to engage in any acts or practices which constitute or will constitute a violation of any provision of section 405 of this title, he may make application to any district court of the United States or any United States court of any Territory or other place subject to the jurisdiction of the United States for an order enjoining such acts or practices, or for an order enforcing compliance with such provision, and upon a showing by the President that such person has engaged or is about to engage in any such acts or practices a permanent or temporary injunction, restraining order, or other order, with or without such injunction or restraining order, shall be granted without bond."

(g) The second sentence of subsection (c) of section 409 of the Defense Production Act of 1950 is amended by striking out the words "but in no event shall such amount exceed the amount of the overcharge, or the overcharges, plus $10,000,".

(h) Section 409 of the Defense Production Act of 1950 is further amended by adding at the end thereof the following new subsections :

"(d) The President shall also prescribe the extent to which any payment made by way of fine pursuant to subsection (b) of this section 409, or any payment made to the United States or to any buyer in compromise or satisfaction of any liability or of any right of action, suit, or judgment, authorized pursuant to subsection (c) of this section 409 for selling any material or service, in violation of a regulation or order providing a ceiling or ceilings, shall be disregarded by the executive departments and other governmental agencies in determining the costs or expenses of any such person for the purposes of any other law or regulation.

"(e) Whenever in the judgment of the President such action is necessary or proper in order to effectuate the purposes of this Act, and to assure compliance with and provide for the effective enforcement of any price regulation or order issued or which may be issued under section 402, he may by regulation or order issue to or require of any person or persons subject to any price regulation or

order issued under section 402, a license as a condition of selling or delivering any material or service with respect to which such price regulation or order is applicable. It shall not be necessary for the President to issue a separate license for each material or for each price regulation or order with respect to which a license is required. No such license shall contain any provision which could not be prescribed by regulation, order, or requirement under section 402: Provided, That no such license may be required as a condition of selilng or distributing (except as waste or scrap) newspapers, periodicals, books or other printed or written material, or motion pictures, or as a condition of selling radio or television time: Provided further, That no license may be required of any farmer as a condition of selling or delivering any agricultural commodity produced by him, and no license may be required of any fisherman as a condition of selling or delivering any fishery commodity caught or taken by him: Provided further, That in any case in which such a license is required of any person, the President shall not have power to deny to such person a license to sell or deliver any material or service, unless such person already has such a license to sell or deliver such material or service, or unless there is in effect under subsection (f) of this section with respect to such person an order of suspension of a previous license to the extent that such previous license authorized such person to sell or deliver such material or service.

"(f) Whenever in the judgment of the President a person has violated any of the provisions of a license issued under this section, or has violated any of the provisions of any price regulation, order, or requirement under section 402, which is applicable to such person, a warning notice shall be sent by registered mail to such person. If the President has reason to believe that such person has again violated any of the provisions of such license, regulation, or order after receipt of such warning notice, the President may petition any court of competent jurisdiction for an order suspending the license of such person for any period of not more than twelve months. If any such court finds that such person has violated any of the provisions of such license, regulation, or order after the receipt of such warning notice, such court shall issue an order suspending the license to the extent that it authorizes such person to sell or deliver the material or service in connection with which the violation occurred, or to the extent that it authorizes such person to sell or deliver any material or service with respect to which a regulation or order issued under section 402 is applicable; but no such suspension shall be for a period of more than twelve months, and if the defendant proves that the violation in question was neither willful nor the result of failure to take practicable precautions against the occurrence of the violation, no suspension shall be ordered or directed. Within thirty days after the entry of the judgment or order of any court either suspending a license, or dismissing or denying in whole or in part the President's petition for suspension, an appeal may be taken from such judgment or order in like manner as an appeal may be taken in other cases from a judgment or order of a State, Territorial, or Federal court, as the case may be. Upon good cause shown, any such order of suspension may be stayed by the appropriate court or any judge thereof in accordance with the applicable practice; and upon written stipulation of the parties to the proceedings for suspension, approved by the trial court, any such order of suspension may be modified, and the license which has been suspended may be restored, upon such terms and conditions as such court shall find reasonable. Any such order of suspension shall be affirmed by the appropriate appellate court if, under the applicable rules of law, the evidence in the record supports a finding that there has been a violation of any provision of such license, regulation, order, or requirement after receipt of such warning notice. No proceedings for suspension of a license, and no such suspension, shall confer any immunity from any other provision of this Act.

"(g) The term 'court of competent jurisdiction' as used in this section shall mean any Federal court of competent jurisdiction regardless of the amount in controversy and any State or Territorial court of competent jurisdiction."

SEC. 105. The Defense Production Act of 1950 is amended by inserting immediately after title IV thereof the following new title IV-A :

"TITLE IV-A-RENT STABILIZATION

"SEC. 451. The Congress recognizes that there is an acute shortage of housing, particularly rental housing, in many parts of the country; further, that in order to achieve effective stabilization it is necessary to control rents of housing and of business accommodations as well as prices and wages. It is, therefore, the