value to be ascertained by appraisal, as provided in sections 751-756 of this title. In making said appraisal the value of the farm for agricultural purposes shall be the basis of appraisal and the normal earning power of said farm shall be a principal factor.

In making loans to owners of groves and orchards, including citrus fruit groves and other fruit groves and orchards, the Federal land banks, the farm land banks, and all Government agencies making loans upon such character of property may, in appraising the property offered as security, give a reasonable and fair valuation to the fruit trees located and growing upon said property and constituting a substantial part of its value. In determining the earning power of land used for the raising of livestock, due consideration shall be given to the extent to which the earning power of the fee-owned land is augmented by a lease or permit, granted by lawful authority of the United States or of any State, for the use of a portion of the public lands of the United States or of such State, where such permit or lease is in the nature of a right adjunctive to such fee-owned lend, and its availability for use as such during the terms of the loan is reasonably assured.

A reappraisal may be permitted at any time in the discretion of the Federal land bank, and such additional loan may be granted as such reappraisal will warrant under the provisions of this paragraph. Whenever the amount of the loan applied for exceeds the amount that may be loaned under the appraisal as herein limited, such loan may be granted to the amount permitted under the terms of this paragraph without requiring a new application or appraisal.

Sixth. RESTRICTIONS ON ELIGIBILITY FOR LOANS; ASSUMPTION OF MORTGAGE AND STOCK INTERESTS BY PURCHASER OF LAND OR HEIR.-No such loan shall be made to any person who is not at the time, or shortly to become, engaged in farming operations or to any other person unless the principal part of his income is derived from farming operations. In case of the sale of the mortgaged land, the Federal land bank may permit said mortgage and the stock interests of the vendor to be assumed by the purchaser. In case of the death of the mortgagor, his heir or heirs, or his legal representative or representatives, shall have the option within sixty days of such death, to assume the mortgage and stock interests of the deceased. As used in this paragraph (1) the term "person" includes an individual or a corporation engaged in the raising of livestock; and (2) the term "corporation" includes any incorporated association; but no such loan shall be made to a corporation (A) unless all the stock of the corporation is owned by individuals themselves personally actually engaged in the raising of livestock on the farm to be mortgaged as security for the loan, except in a case where the Land Bank Commissioner permits the loan if at least 75 per centum in value and number of shares of the stock of the corporation is owned by the individuals personally actually so engaged, and (B) unless the owners of at least 75 per centum in value and number of shares of the stock of the corporation assume personal liability for the loan. No loan shall be made to any corporation which is a subsidiary of, or affiliated (either directly or through substantial identity of stock ownership) with, a corporation ineligible to procure a loan in the amount applied for.

Seventh. MAXIMUM AND MINIMUM OF LOANS.-The amount of loans to any one borrower shall [in no case exceed a maximum of $50,000, but loans to any one borrower shall not exceed $25,000 unless approved by the Land Bank Commissioner, nor shall any one loan be for a less sum than $100, but preference shall be given to applications for loans of $10,000 and under.

Eighth. FORM OF APPLICATIONS FOR LOANS.-Every applicant for a loan under the terms of this subchapter shall make application on a form to be prescribed for that purpose by the Farm Credit Administration, and such applicant shall state the objects to which the proceeds of said loan are to be applied, and shall afford such other information as may be required.

Ninth. INTEREST ON DEFAULTED PAYMENTS; PAYMENT OF TAXES AND LIENS; INSURANCE. Every borrower shall pay simple interest on defaulted payments at a rate not exceeding 6 per centum per annum, and by express covenant in his mortgage deed shall undertake to pay when due all taxes, liens, judgments, or assessments which may be lawfully assessed against the land mortgaged. Taxes, liens, judgments, or assessments not paid when due, and paid by the mortgagee, shall become a part of the mortgage debt and shall bear simple interest at a rate not exceeding 6 per centum per annum. Every borrower shall undertake to keep insured to the satisfaction of the Farm Credit Administration all buildings the value of which was a factor in determining the amount of the loan. Insurance shall be made payable to the mortgagee as its interests may appear at time of loss, and at the option of the mortgagor and subject to general regulations of the

Farm Credit Administration; sums so received may be used to pay for reconstruction of the buildings destroyed.

Tenth. AGREEMENT BY BORROWERS AS TO USE OF LOANS.-Every borrower who shall be granted a loan under the provisions of this subchapter shall enter into an agreement, in form and under conditions to be prescribed by the Farm Credit Administration, that if the whole or any portion of his loan shall be expended for purposes other than those specified in his original application, or if the borrower shall be in default in respect to any condition or covenant of the mortgage, the whole of said loan shall, at the option of the mortgagee, become due and payable forthwith: Provided, That the borrower may use part of said loan to pay for his stock in the farm loan association, and the land bank holding such mortgage may permit said loan to be used for any purpose specified in subsection fourth of this section.

Eleventh. LOANS NOT INVALIDATED BY UNAUTHORIZED ACTS BY BANKS OR ASSOCIATIONS.-No loan or the mortgage securing the same shall be impaired or invalidated by reason of the exercise of any power by any Federal land bank or national farm loan association in excess of the powers herein granted or any limitations thereon.

Twelfth. REDUCTION OF INTEREST ON LOANS AND DEFERMENT OF PRINCIPAL.Notwithstanding the provisions of paragraph "second" of this section, the rate of interest on any loans on mortgage made through national farm-loan associations or through agents as provided in sections 801-808 of this title, or purchased from joint stock land banks, by any Federal land bank, outstanding on May 12, 1933, or made through national farm loan associations after such date, shall not exceed 31⁄2 per centum per annum for all interest payable on installment dates occurring within a period of nine years commencing July 1, 1935; and no payment of the principal portion of any installment of any such loan outstanding on June 3, 1935, shall be required prior to July 11, 1938, if the borrower shall not be in default with respect to any other condition or covenant of his mortgage. The foregoing, provisions shall apply to loans made by Federal land banks through branches except that the rates of interest paid for the respective periods above specified shall be one-half of 1 per centum per annum in excess of the rates of interest paid during the corresponding periods by borrowers on mortgage loans made through natonal farm-loan associations. The foregoing provisions shall also apply to interest on so-called purchase-money mortgages and on real estate sales contracts taken by the Federal land banks which is payable on installment dates occurring after June 30, 1942, except that in the case of such mortgages and contracts the rate of interest shall be one-half of 1 per centum per annum in excess of the rate paid by borrowers on mortgage loans made through national farm loan associations. The Secretary of the Treasury shall pay each Federal land bank, as soon as practicable after October 1, 1933, and after the end of each quarter thereafter, such amount as the Land Bank Commissioner certifies to the Secretary of the Treasury is equal to the amount by which interest payments on mortgages held by such bank have been reduced, during the preceding quarter, by reason of this paragraph; but in any case in which the Land Bank Commissioner finds that the amount of interest payable by such bank during any quarter has been reduced by reason of the refinancing of bonds under section 992 of this title, the amount of the reduction so found shall be deducted from the amount payable to such bank under this paragraph. No payments shall be made to a bank with respect to any period after June 30, 1944. There is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $15,000,000 for the purpose of enabling the Secretary of the Treasury to make payments to Federal land banks which accrue during the fiscal year ending June 30, 1934, and such additional amounts as may be necessary to make payments accruing during subsequent fiscal years

POWERS OF FEDERAL LAND BANKS GENERALLY

781. ENUMERATED POWERS.

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Tenth. EXTENSION OF OBLIGATIONS UNPAID UNDER TERMS OF MORTGAGES.When in the judgment of the directors conditions justify it, to extend, in whole or in part, any obligation that may be or become unpaid under the terms of any mortgage, and to accept payment of any such obligation during a period of five years or less from the date of such extension in such amounts as may be agreed upon at the date of making such extension. [The sum of $25,000,000 of the amount authorized to be appropriated under section 698 of this title shall be used

exclusively for the purpose of supplying any bank with funds to use in its operations in place of any amounts of which such bank may be deprived by reason of extensions made as provided in this paragraph.] The terms of any such extension shall be such as will not defer the collection of any obligation due by any borrower which, after investigation by the bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any such extension, or in the case of any deferment of principal as provided in paragraph "Twelfth" of section 771 of this title, it shall be the duty of the Secretary of the Treasury, on behalf of the United States, upon the request of the Federal land bank making the extension, and with the approval of the Land Bank Commissioner, to subscribe at such periods as the Commissioner shall determine, to the paid-in surplus of such bank an amount equal to the amount of all such extensions and deferments made by the bank during the preceding period. Such subscriptions shall be subject to call, in whole or in part, by the bank with the approval of the Commissioner upon thirty days' notice. To enable the Secretary of the Treasury to make such subscriptions to the paid-in surplus of the Federal land banks, there is authorized to be appropriated the sum of $50,000,000, to be immediately available and remain available until expended. Upon payment to any Federal land bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Land Bank Commissioner. The amount of any subscriptions to the paid-in surplus of any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the approval of the Land Bank Commissioner, and the Commissioner may at any time require such subscriptions to be repaid in whole or in part if in his opinion the bank has resources available therefor. The unexpended balances of the funds appropriated by the Fourth Deficiency Act, fiscal year 1933, approved June 16, 1933 (48 Stat. 279), the Emergency Appropriation Act, fiscal year 1935, approved June 19, 1934 (48 Stat. 1060), the Second Deficiency Appropriation Act, fiscal year 1935, approved August 12, 1935 (49 Stat. 592), the First Deficiency Appropriation Act, fiscal year 1936, approved June 22, 1936 (49 Stat. 1597), the Treasury Department Appropriation Act, 1937, approved June 23, 1936 (49 Stat. 1827), and the Treasury Department Appropriation Act, 1938, approved May 14, 1937 (50 Stat. 137), for the purpose of enabling the Secretary of the Treasury to make subscriptions to the paid-in surplus of the Federal land banks, as provided for in this paragraph, and the proceeds of all repayments on account of such paid-in surplus, shall be held in the Treasury of the United States as a revolving fund and shall be available for subscriptions to paid-in surplus made pursuant to this paragraph.]

APPLICATION OF AMORTIZATION AND INTEREST PAYMENTS

891. PAYMENTS UPON MORTGAGES PLEDGED AS COLLATERAL FOR BOND ISSUE; NOTICE TO REGISTRAR; CANCELLATION OF MORTGAGE AND DISCHARGE OF LIEN UPON FULL PAYMENT.

[Whenever any Federal land bank, or joint-stock land bank, shall receive any interest, amortization, or other payments upon any first mortgage or bond pledged as collateral security for the issue of farm-loan bonds, it shall forthwith notify the farm-loan registrar of the items so received. Said registrar shall forthwith cause such payment to be duly credited upon the mortgage entitled to such credit. Whenever any such mortgage is paid in full, said registrar shall cause the same to be canceled and delivered to the proper land bank, which shall promptly satisfy and discharge the lien of record and transmit such canceled mortgage to the original maker thereof, or his heirs, administrators, executors, or assigns.]

Whenever any Federal land bank, or joint-stock land bank, shall receive any principal payments upon any first mortgage or bond pledged as collateral security for the issue of farm-loan bonds, it shall forthwith notify the farm-loan registrar thereof as may be required by the Farm Credit Administration. Said registrar shall reflect such payment on his records in such manner as may be prescribed by the Farm Credit Administration. Upon notice from the bank that any such mortgage is paid in full. said registrar shall cause the same to be delivered to the proper land bank, which shall promptly cancel said mortgage and transmit such canceled mortgage, together with a release or satisfaction thereof as may be required to satisfy and discharge the lien of record, to the original maker thereof, or his heirs, administrators, executors, or assigns.

CONRAD L. WIRTH

MAY 31, 1949.-Committed to the Committee of the Whole House and ordered to be printed

Mr. BYRNE of New York, from the Committee on the Judiciary, submitted the following

REPORT

(To accompany H. R. 14461

The Committee on the Judiciary, to whom was referred the bill (H. R. 1446) for the relief of Conrad L. Wirth, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

The purpose of the proposed legislation is to pay the sum of $85.86 to Conrad L. Wirth, of Chevy Chase, Md., for reimbursement of expenses incident to the transfer of his household goods from Glencoe, Ill., to Chevy Chase, Md., in connection with the change of his official station from Chicago, Ill., to Washington, D. C.

STATEMENT OF FACTS

It appears that when the National Park Service of the Department of the Interior was moved to Chicago, Ill., in 1942, in connection with the decentralization program caused by the war, employees with families were authorized to ship by motor van at Government expense not to exceed 7,000 pounds of their household goods. In 1946, however, at the time Mr. Wirth was ordered to return to Washington, the regulations which governed the shipment of his household goods permitted employees to ship at Government expense not to exceed 5,000 pounds of such household goods. The household goods of the claimant weighed 1,620 pounds in excess of the 5,000-pound limitation. Later, following the order to move the Service back to Washington, Executive Order No. 9805 of November 25, 1946, permitted employees with families to ship up 7,000 pounds of their household goods. As Mr. Wirth's order to return to Washington was dated prior to the effective date of Executive Order No. 9805, there is no authority to

compensate him for the 1,620 pounds of household goods which were in excess of the 5,000-pound limitation. The actual moving of his household goods did not take place until July 1947, when the 7,000pound limitation was in effect, due to the fact that he was unable to find a suitable place of residence until that time.

Your committee recommend favorable consideration to the bill. DEPARTMENT OF THE INTERIOR,

Hon. EARL C. MICHENER,

OFFICE OF THE SECRETARY, Washington, D. C., August 6, 1948.

Chairman, Committee on the Judiciary, House of Representatives.

MY DEAR MR. MICHENER: Your committee has requested a report on H. R. 5594, entitled "A Bill for the Relief of Conrad L. Wirth." This bill would authorize the payment to Mr. Wirth, an employee of this Department, the sum of $85.86 in full satisfaction of his claim against the United States for reimbursement of expenses incident to the transfer of his household goods from Glencoe, Ill., to Chevy Chase, Md.

I recommend that H. R. 5594 be enacted.

The amount stated in this bill ($85.86) represents that portion of the cost of shipping the household goods of the claimant for which he could not be compensated under the applicable regulations concerning the shipment of such goods of Federal employees. This additional expense to Mr. Wirth resulted from the change of his official station from Chicago, Ill., to Washington, D. C.

The

When the National Park Service of this Department was moved to Chicago, Ill., in 1942, in connection with the decentralization program caused by the war, employees with families were authorized to ship by motor van at Government expense not to exceed 7,000 pounds of their household goods. In 1946, however, at the time Mr. Wirth was ordered to return to Washington, the regulations which governed the shipment of his household goods permitted employees to ship at Government expense not to exceed 5,000 pounds of such household goods. household goods of the claimant weighed 1,620 pounds in excess of the 5,000-pound limitation. Later, following the order to move the Service back to Washington, Executive Order No. 9805 of November 25, 1946, permitted employees with families to ship up to 7,000 pounds of their household goods. As Mr. Wirth's order to return to Washington was dated prior to the effective date of Executive Order No. 9805, there is no authority to compensate him for the 1,620 pounds of household goods which were in excess of the 5,000-pound limitation. The actual moving of his household goods did not take place until July 1947, when the 7,000pound limitation was in effect, due to the fact that he was unable to find a suitable place of residence until that time.

I have been advised by the Bureau of the Budget that there would be no objection by that Bureau to the presentation of this report to your committee.

Sincerely yours,

C. GIRARD DAVIDSON, Acting Secretary of the Interior.

UNITED STATES DEPARTMENT OF THE INTERIOR,

Memorandum for the Director.

NATIONAL PARK SERVICE, Washington, D. C.. August 26, 1947.

This is

There is enclosed a bill for collection, amounting to $85.86, together with my check made out to the Treasurer of the United States for that amount. for the purpose of paying excess transportation charges for moving my household effects from Winnetka. Ill., to Chevy Chase, Md.

I am paying this bill under protest and wish to appeal this charge on the grounds that in 1942 the Government moved the same furniture to Chicago without charge because it was for the convenience of the Government; and, now that the Government has moved me back to my permanent headquarters, I believe that this charge is not justified, as it is all part and parcel of the same objective. I do not see why I should pay this additional expense. This is especially true in view of the fact that the rest of the office is being moved back to Washington with limita