JOSEPH MRAK

(H. Rept. No. 1234, 78th Cong., 2d sess., with H. R. 3434]

The Committee on Immigration and Naturalization, to whom was referred the bill (H. R. 3434) for the relief of Joseph Mrak, having considered the same, report favorably thereon with amendments and recommend that the bill, as amended, do pass.

The amendments are as follows:

1. On page 1, lines 3 and 4, strike out the following: ", notwithstanding the provisions of the immigration laws,".

On page 1, line 8, add the following: "Upon the enactment of this Act the Secretary of State shall instruct the proper quota control officer to deduct one number from the Yugoslav quota of the first year that the said Yugoslav quota is available."

3. Strike out section 2.

The bill, as amended, reads as follows:

"Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Attorney General is authorized and directed to permit Joseph Mrak, of Johnstown, Pennsylvania, to remain permanently in the United States if he is found to be otherwise admissible under the provisions of the immigration laws other than quotas. Upon the enactment of this Act the Secretary of State shall instruct the proper quota control officer to deduct one number from the Yugoslav quota of the first year that the said Yugoslav quota is available.'

PURPOSE OF THE BILL

The bill, as amended, would merely grant permanent admission to Joseph Mrak, a Yugoslav alien, who has been here for some time and who is steadily employed as a miner in the important coal industry.

GENERAL INFORMATION

A representative of the Department of Justice appeared and explained the bill. Notwithstanding the recommendation of the Attorney General, the committee were of the opinion that the record was so favorable to the alien, including the fact that he was engaged in such an important industry, that he should not be required to lose the time incident to his departure for a foreign country in order to secure an immigration visa.

The first amendment is offered because it is inconsistent with the rest of the first sentence of the bill as it does not waive any of the provisions of the immigration laws except the necessity of the presentation of a quota visa.

The objective of the quota law is sustained by amendment No. 2 which provides that this man shall be charged against the Yugoslav quota.

The third amendment is offered because it was not the desire of the committee to interfere with the orderly naturalization procedure.

The letter of the Attorney General, dated February 12, 1944, addressed to the chairman of the committee, and quoted below, explains the bill in detail.

Hon. SAMUEL DICKSTEIN,

FEBRUARY 12, 1944.

Chairman, Committee on Immigration and Naturalization,

House of Representatives, Washington, D. C.

MY DEAR MR. CHAIRMAN: This is in response to your request for the views of this Department, relative to a bill (H. R. 3434) for the relief of Joseph Mrak. The bill would provide that the Attorney General is authorized and directed to permit the beneficiary to remain permanently in the United States if he is found to be admissible under the immigration laws other than those relating to quotas and that he may, within 1 year after the enactment of the act, be naturalized by taking the oath of allegiance before any court having proper jurisdiction. It appears from the files of the Immigration and Naturalization Service of this Department that Joseph Mrak was born August 15, 1899, in Yugoslavia. He tried but was unable to secure entry into the United States, and so proceeded to Canada in 1928. He was naturalized as a Canadian citizen in 1936 and remained in that country until 1939. About October 20, 1939, he entered the United States presumably to stay 1 day, but proceeded to his sister's home in Conemaugh Township, Pa. He has resided in the United States since that time. He was arrested by the Immigration and Naturalization Service September 3, 1943, and an order was entered granting him permission to depart from the United States.

An investigation conducted by the Immigration and Naturalization Service indicates that Mr. Mrak has been employed as a miner during the time he has been in this country. He has a wife and three children in Yugoslavia to whom he has sent considerable money. He has saved $2,500, stating he has done so in order to bring his family into the United States after the war. He owns $750 in War bonds and a 10-percent deduction is made from his salary of approximately $200 each month for additional purchases. Due to the small size of the community in which he lives, only two witnesses were available to testify to his character and they spoke highly of him. It appears that he is a hard-working, honest individual.

The quota for Yugoslavia is open and, therefore, an administrative remedy is available to Mr. Mrak. He is a citizen of Canada and there appears to be no reason why he should not attempt to return to that country and apply for an immigration visa.

The second provision of the bill would permit Mr. Mrak to be naturalized without compliance with the residence and other requirements of the naturalization laws.

The President in a veto message transmitted on October 10, 1940, returning a private bill (H. R. 7179; 76th Cong., 3d sess.) to permit the naturalization of a specific alien stated "Resort to naturalization by private act should be permitted, if at all, only in unusual and unique circumstances." No such circumstance is perceived in this instance.

In view of the foregoing consideration, I am unable to recommend the enactment of the bill.

I have been informed by the Director of the Bureau of the Budget that there is no objection to the submission of this report.

Sincerely yours,

Attorney General. After full consideration of the circumstances the committee were of the opinion that the bill has considerable merit and recommend that, as amended, it do pass.

о

MARCH 20, 1944.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. MAY, from the Committee on Military Affairs, submitted the

following

REPORT

[To accompany H. R. 3022]

The Committee on Military Affairs, to whom was referred the bill (H. R. 3022) to provide authority to the Secretary of War to use funds. now or hereafter appropriated for adjustment of contracts, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass. The amendments are as follows:

Strike out all after the enacting clause and insert the following: That this Act may be cited as the "War Contracts Settlement Act".

DEFINITIONS

SEC. 2. As used in this Act, the term

(a) "War contract" means either a prime contract or a subcontract.
(b) "War contractor" means the holder of one or more war contracts.

(c) "Prime contract" means a contract or agreement entered into, or a purchase order given, by a contracting agency and connected with or related to the prosecution of the war.

(d) "Prime contractor" means the holder of one or more prime contracts.

(e) "Subcontract" means a contract, agreement, or purchase order connected with or related to the performance of a prime contract or of any other subcontract, but does not include any contract or agreement for the performance of services as an employee.

(f) "Subcontractor" means the holder of one or more subcontracts.

(g) "Contracting agency" means any department, agency, or instrumentality of the United States which is, or at any time has been authorized, to make contracts pursuant to section 201 of the First War Powers Act, 1941.

(h) "Termination" means the cancelation, in whole or in part, of work under a war contract for any reason except the default of the war contractor, and the terms "terminate" and "terminated" shall be construed accordingly.

(i) "Termination claim" means any claim by a war contractor under a terminated war contract.

ADVANCE NOTICE OF TERMINATION

SEC. 3. It is the policy of the United States to provide that notice of termination of war contracts be given to the war contractors as far in advance of the actual termination of such contracts as is feasible and consistent with the national security. To carry out this policy—

(a) each contracting agency shall provide prime contractors, to the fullest extent feasible, with advance notice of termination of any prime contracts held by them;

(b) each prime contractor, upon receiving notice of termination of any prime contract held by him, shall forwith provide his subcontractors with notice of termination of their subcontracts connected with or related to such prime contract;

(c) each subcontractor upon receiving notice of termination of any subcontract held by him shall forthwith provide his subcontractors with notice of termination of their subcontracts connected with or related to such subcontract;

(d) each contracting agency shall limit the termination of any prime contract in such manner as may be appropriate so as to (1) provide for the completion of work in process under such prime contract and under subcontracts wherever such completion will result in a saving to the United States, and (2) provide for the continuation of work under such prime contract and under subcontracts for the purpose of avoiding injury to plant and material.

TERMINATION CLAIMS

SEC. 4. (a) Whenever a war contract is terminated, the contracting agency(1) shall first endeavor to make a tentative agreement (as provided in section 7) with the war contractor with respect to the amount due on account of items which can be promptly determined with reasonable certainty, and if such a tentative agreement is made shall forthwith pay, subject to subsection (b), to the war contractor an amount equal to 100 per centum of such items. So far as practicable, the contracting agency shall endeavor to make such a tentative agreement and such payment within thirty days after application by the war contractor for payment under this paragraph; (2) shall pay, subject to subsection (b), to the war contractor an amount equal to 90 per centum of the minimum amount due on all items with respect to which an agreement is not made under paragraph (1), such minimum amount to be (A) the minimum amount estimated as due with respect to such items by the contracting agency, or (B) the minimum amount estimated as due with respect to such items by the war contractor, whichever is the lesser. So far as practicable, the contracting agency shall make such payment within thirty days after application by the war contractor for payment under this paragraph;

(3) subject to subsection (c), shall guarantee loans to the war contractor to the extent of the excess of the minimum amount of his termination claim over any payments or loans theretofore made to the war contractor on account of the termination. Such minimum amount shall be that estimated by the war contractor or that estimated by the contracting agency, whichever is the lesser.

(4) shall reimburse the war contractor for interest paid by him on any loan guaranteed in whole or in part under paragraph (3), but if the minimum amount of the termination claim determined under paragraph (3) exceeds the amount of the termination claim as finally determined, no reimbursement shall be made for interest on the portion of the loan which is equal to such excess.

(b) Payments under subsection (a) (1), if made to a subcontractor, shall be either payments in purchase, or payments for the assignment, of his termination claim with respect to the items involved, as determined by agreement with the subcontractor. In the case of any payment to a subcontractor under subsection (a), the contracting agency shall provide for the subrogation of the United States to the rights of the subcontractor to the extent of such payments. In determining the amount of any payment to be made to a war contractor under subsection (a), proper adjustments shall be made to reflect payments under such subsection to subcontractors of such war contractor.

(c) No guaranty of any loan under subsection (a) shall be made unless it is determined by the contracting agency concerned that the war contractor has shown the loan to be necessary in order to enable him to continue operations, and unless it is further determined by such contracting agency that there is reason to believe, on the basis of the war contractor's business record, that the loan in respect of which the guaranty is proposed, will be repaid in accordance with the terms of the loan agreement. The contracting agency, as a condition of any guaranty of a loan to a war contractor under this section, shall require that the war contractor assign, to the person making the loan or to the United States, or to both as their interests may appear, the termination claim in respect of which such loan is made, and shall not require the giving of any other security.

(d) In case any payment under subsection (a) (2) exceeds the portion of the claim, as finally determined, remaining after making payments under subsection (a) (1), the excess shall be deemed a loan to the war contractor, payable on demand, with interest at such rate (not to exceed 6 per centum per annum) as may be fixed by the contracting agency concerned for the period beginning with the date of the payment under subsection (a) (2) and ending with the date on which the excess is repaid.

(e) In order to expedite the making of payments to war contractors under subsection (a), such payments shall be made prior to audit and settlement by the General Accounting Office, and no disbursing officer making any such payment in accordance with a duly certified voucher shall be personally liable for such payment in the absence of fraud or bad faith on his part. In settling the accounts of any such disbursing officer the General Accounting Office shall allow such disbursements made by him notwithstanding any other provision of law. Nothing in this subsection shall affect the liability of any certifying officer or affect the liability of any war contractor to repay to the United States any amount paid to him contrary to law.

(f) No loan, guaranty, commitment, or advance or partial payment, in connection with the termination of any war contract, shall be made by any officer or agency in the executive branch of the Government except as authorized by this Act.

REMOVAL AND STORAGE OF MATERIALS

SEC. 5. (a) It is the policy of the United States, upon the termination of any war contract, to insure the expeditious removal from the plant of the war contractor of all materials, machinery, and equipment which relate to such terminated war contract and for which the United States is responsible.

(b) To carry out this policy each contracting agency shall provide

(1) for the submission by the war contractor to the contracting agency of statements, in such form and detail as it may prescribe, showing the materials, machinery, and equipment related to a terminated war contract for which the United States is responsible;

(2) for the removal of such materials, machinery, and equipment by the contracting agency within thirty days after the submission of such statements or within such longer period as the war contractor may agree;

(3) for the removal and storage of such materials, machinery, and equipment by the war contractor at the risk and expense of the United States upon the failure of the contracting agency so to remove them.

UNIFORMITY OF POLICIES AND ADMINISTRATION

SEC. 6. (a) There shall be in the General Accounting Office a War Contracts Settlement Board (hereinafter called the "Board") which shall consist of not less than three and not more than nine members, who shall be appointed by the Comptroller General of the United States. The Comptroller General shall designate one of the members as chairman. The members of the Board shall receive compensation at such rate as may be fixed by the Comptroller General. (b) Any action authorized, required, or permitted to be taken by any contracting agency or war contractor under this Act, or under the provisions of any prime contract which relate to the termination of such contract, shall be taken only subject to and in accordance with such regulations prescribed by the Board, as the Board deems necessary to insure efficient administration of this Act and to insure the application by the contracting agencies of uniform policies in respect of the termination of war contracts and the consideration and settlement of termination claims.