Evening star., 1940-10-06
Debt Moratorium Bill
For Seryicemen Gets
Conference 0. K.
Benefits Extended Only
In Cases Where Ability
To Pay Is Impaired
Bv HAROLD B. ROGERS.


House and Senate conferees yes
terday agreed on the soldiers and
sailors debt moratorium bill, de-
signed to afford protection to men
In the service during the defense
emergency.
The bill will be sent first to the
House for approval of the conferees'
report, and then to the Senate. Ac-
cording to one of the confereeS.
there is every likelihood that both
chambers will approve the measure
within the next few days.
One of the House amendments
agreed to was that requested by
automobile finance companies. Ac-
cording to the House Military Affairs
Committee report this amendment
Is designed Ito limit the power of a
court to stay proceedings for re-
possession of an automobile to those
cases where the installment pur-
chaser of an automobile or tractor
has paid so per cent or more of
the total purchase price"
Effective Until May, 1945.
This amendment" the House
committee explained, in no way re-
stricts a court in arriving at an
equitable disposition of such cases
in serving the interests of the
parties concerned"
The bill would be effective until
May Is, 1945, instead of in June
of that year, according to another
provision agreed to by the conferees
The May IS date comedies with
the end of the Selective Service
Act.
The conferees also agreed to an
amendment proposed by the Treas
urv Department, which would allow
soldiers and sailors a deferment in
payment of Federal income taxes
for period of not more than six
months after the termination OF
service. This moratorium on in
come taxes. however. like other
benefits of the bill, would be ex-
tended only to men whose military
service was the cause of a serious
impairment" in ability to pay.
Suspends Civil Liabilities.
The conferees agreed to an
amendment designed to prevent the
freezing of installment credit to
men in the conscription ages be-
tween 81 and 36. The amendment
provides that creditors have to go
to court to repossess property such
as automobiles or rescind INSTALL
ment contracts only if the contract
had been drawn up prior to the
effective date of the law. A further
provision authorizing settlement of
such cases by mutual consent was
dropped from the measure by the
conferees.
The measure generally is designed
10 suspend enforcement of certain
civil liabilities of men serving In
the military and naval establish
ments of the country. The bill would
free persons in the service from
harassment and injury in connec-
..tion with their civil affairs, during
their terms of service, and thus
enable them the more successfully
ITO devote their entire energies to
the military needs of the Nation"
Delays Proceedings.
The bill covers such subjects as
Btay OF court proceedings, stay of
executions, protection Of plaintiffs
and defendants absent on military
and naval service, non eviction for
failure to pay rent, suspendlng
foreclosures of mortgages for fail
ure to meet scheduled installments,
suspension of the lapsing of insur-
ance for default in payment of pre-
niums. prohibiting repossesslon of
property purchased under a con-
tract of conditional sale without
court action, prohibiting irrevocable
sale of property for nonpayment of
taxes for limited period, extern
sion of the running of the statute
Of limitations.
Briefly, the method of the act con-
sists in suspending proceedings and
transactions during the service
mans absence so that he might
have an opportunity when he re-
turns to be heard and to take meas
ures to protect his interests.
The conferees included: Senators
Thomas of Utah, Austin and Cur
,ney, and Representative Thoma-
Son, Costello, ArendS and Harness.