An Act to amend An Act entitled ""An Act to provide for the sale of the Port Newark Army Base to the city of Newark, N. J., and for other purposes,"" approved June 20, 1936, as amended
PL 84-413 (S.2624), enacted 02/18/1956

20 
PUBLIC LAW 413-FEB. 18, 1956 
[70 ST A T . 
Conditions. 
Reservations to 
U. S. 
R e v e r s i o n 
t o 
U, S. 
Nonappllc ability. 
65 Stat. 365. 
50 u s e 551. 
493.34 feet, an arc distance of 54.39 feet to a point in the line dividing 
lot 4C and lot l A ; thence (10) nortli 33 degrees 13 minutes 08 seconds 
west, a distance of 273.59 feet to the point of beginning, containing 
396,913.0 square feet more or less, or 9.11 acres more or less, being 
also designated as part of lots lA, ID, 2, 3C in block 1500, and part 
of Jot ID in block 1494 on the tax map of the city of Jersey City, 
together with any and all right of direct access to and from the afore-
mentioned extension of the New Jersey Turnpike constructed or to be 
constructed on land hereinabove described. 
SEC. 2. The conveyance authorized by this Act shall be made subject 
to (a) the condition that the New Jersey Turnpike Authority pay 
into the Treasury of the United States, in return for the land conveyed, 
an amount equal to the fair market value of such land to be determined 
by the Secretary of the Army after appraisal of such land, and (b) 
such other conditions, limitations, or reservations as the Secretary 
may deem necessary to assure that the use of such land by the New 
Jersey Turnpike Authority, its successors, contractors, lessees, or 
assigns, shall not interfere with the operation of the aforementioned 
installation and to assure that the interest of the United States shall 
be protected. 
SEC. 3. All mineral rights, including gas and oil, in the lands 
authorized to be conveyed by this Act shall be reserved to the United 
States. 
SEC. 4. There shall be further reserved to the United States in the 
conveyance of the above-described lands, rights-of-way for water lines, 
sewer lines, telephone and telegraph lines, power lines, and such other 
utilities which may now exist or which may become necessary to the 
operation of the Caven Point Terminal and Ammunition Loading 
Pier. Any such utility crossings required by the United States subse-
quent to the opening of the Newark Bay-Hudson County extension 
of the New Jersey Turnpike to traffic shall be installed underground 
and at the expense of the United States. 
SEC. 5. In executing the deed of conveyance authorized by this Act, 
the Secretary of the Army shall include specific provisions covering 
the reservations contained in sections 3 and 4 of this Act. 
SEC. 6. In the event actual construction of such street or road and 
other construction connected therewith or related thereto is not com-
menced within two years from the date of enactment of this Act, or 
in the event such property shall cease to be used for street or road 
purposes and other purposes connected therewith or related thereto 
for a period of two consecutive years, then title to such land, including 
all improvements made by the New Jersey Turnpike Authority, shall 
immediately revert to the United States without any payment by the 
United States of compensation therefor. 
SEC. 7. The provisions of section 601 of the Act of Congress 
approved September 28, 1951 (Public Law 155, Eighty-second Con-
gress), shall not apply to the conveyance authorized by this Act. 
Approved February 18, 1956. 
Public Law 413 
February 18, 1956 
rs.2624] 
CHAPTER 60 
AN ACT 
To amend an Act entitled "An Act to provide for the sale of the Port Newark 
Army Base to the city of Newark, New Jersey, and for other purposes" 
approved June 20, 1936, as amended. 
P o r t 
N e w a r k 
Army Base. 
Sale to* Newark, 
N . J . 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That in view of the 
70 S T A T . ] 
PUBLIC LAW 4 1 3 - F E B . 18, 1966 
21 
national interest in the future maintenance and development of the 
Port Newark Army Base as a marine terminal in good operating con-
dition, and to encourage, by providing a sound economic basis there-
for, the investment by the Port of New York Authority, during the 
remainder of its term as lessee of the premises, of such sums for main-
tenance, repair, rehabilitation, or reconstruction of wharves, build-
ings, or other installations as may be necessary to provide and main-
tain such a terminal, now therefore, the first section of the Act 
entitled "An Act to provide for the sale of the Port Newark Army 
Base to the city of Newark, New Jersey, and for other purposes", 
approved June 20, 1936, as amended, is further amended by striking 
49 stat. iss?. 
out '•^And provided further^ That such conveyance shall be made upon 
the condition that the United States, in the event of wjir or of any 
national emergency declared by Congress to exist, shall have the right 
to take over said property and shall pay to the city of Newark as 
liquidated damages a sum equal to 8 per centum per annum on the 
amount theretofore paid on the purchase price of the said property 
by the said city during each year or part thereof that the said prop-
erty is occupied under such taking by the United States, the said prop-
erty to be returned to the city of Newark upon the expiration of such 
war or national emergency", and inserting in lieu thereof the follow-
ing : '"'And provided further^ That such conveyance shall be made upon 
National e me r-
the condition that the deed executed by the Secretary of the Army ^*Reentry by u. s. 
shall include a provision prohibiting the city of Newark from utilizing 
or allowing the property to be utilized for purposes other than as a 
marine terminal and shall contain the express condition that when-
ever the Congress of the United States declares a state of war or other 
national emergency to exist, the United States shall have the right, 
subject to the obligation to make payments as hereinafter provided, 
to reenter the property and use the same or any part thereof, including 
any and all improvements made thereon during its occupancy bj^ the 
city of Newark or its lessees, for the duration of such state of war or 
other national emergency. 
If the property is not returned by the 
United States to the city of Newark prior to the termination of such 
state of war or other national emergency, it shall revert to the city of 
Newark upon the termination of such state of war or other national 
emergency. 
During each year or part thereof that the said property 
is occupied by the United States under a reentry during such state 
of war or other national emergenc}^ the United States shall pay to the 
city of Newark or, if the property is then under lease, then to the 
city's then lessee, a rental or rentals to be computed as follows: 
"(1) If subsequent to August 1, 1955, but prior to the date of such rentaTf"*^*^^'' °' 
reentiy there has been expended (other than by the United States) 
less than the sum of $3,000,000 for the capital repair or improvement, 
and reconstruction or rehabilitation, other than normal maintenance, 
of the said property including any part thereof and the wharves, 
buildings, structures, or other installations thereon or therein, then 
and in such event the United States shall pay as the annual rent a 
sum equal to 3 per centum of the amount theretofore paid on the pur-
chase price of said property by or on behalf of the city of Newark. 
"(2) If subsequent to August 1, 1955, but prior to the date of such 
reentry, there has been expended (other than by the United States) 
$3,000,000 or moi-e but less than $10,000,000, for the capital repair or 
improvement, and reconstruction or rehabilitation, other than nor-
mal maintenance, of said property including any part thereof and the 
wharves, buildings, structures, or other installations thereon or 
therein, then and in such event the United States shall pay as the 
annual rent $60,000 plus a sum equal to three-fifths of the annual fair 
rental value of said property on the date of such i-eentry. 
22 
PUBLIC LAW 413-FEB. 18, 1956 
[70 STAT. 
"(3) If subsequent to August 1, 1955, but prior to the date of 
reentry, there has been expended (other than by the United States) 
$10,000,000 or more for the capital repair or improvement, and re-
construction or rehabilitation, other than normal maintenance, of the 
said property including any part thereof, and the wharves, buildings, 
structures, or other installations thereon or therein, then and in such 
event the United States shall pay as the annual rent $60,000 plus a 
sum equal to that part of the annual fair rental value of the property 
on the date of such reentry which is the same proportionate part of 
the annual fair rental value on that date as the excess of the fair mar-
ket value of the premises on the date of such reentry over $3,200,000 
is of the total fair market value on that date. 
"The deed shall further provide that in establishing the fair mar-
ket value or the annual fair rental value as of the date of reentry when 
such value or values are required for rent computation purposes, the 
United States and the city of Newark, or if the property is then under 
lease, then the United States and the city's lessee, shall be guided by 
two appraisers, one to be appointed by the United States and one by 
the city or the city's lessee, and if the United States and the city, or if 
the property is then under lease, then the United States and the city's 
lessee are unable to agree on the fair market value or the annual fair 
rental value as of the date of reentry, then said value or values shall be 
determined by the United States District (^ourt in and for the Dis-
trict of New Jersey, and jurisdiction is conferred on that court for 
such purpose. 
m^^'^addiVionl" 
"The deed shall further provide that there shall be excluded from 
etc. 
°" ' consideration as part of the sums expended by others than the United 
States any moneys that may be paid to the city of Newark or its lessee 
by the United States in lieu of restoration, if any, of the said prop-
erty to be performed under any lease to the United States of said 
property or as restoration costs incurred by the United States, during 
any period of reentry as herein provided, regardless of whether or 
not the funds are thereafter actually expended for capital repair or 
improvement, or reconstruction or rehabilitation, of the said property. 
"The deed shall further provide that during any period of reentry 
hereunder, the United States shall have the right to make additions, 
alterations, modifications, or improvements to the property and that 
such additions, alterations, modifications, or improvements placed in, 
upon, or attached to said property may be removed by the United 
States prior to the return of the property to the city of Newark or 
its lessee. 
"Prior to or at the expiration of the state of war or other national 
emergency during and on account of which the right to reenter said 
property herein granted, is exercised, but not later than the expiration 
thereof, the property shall be returned to the city of Newark or if 
the property is then under lease, then to the city's then lessee: Pro-
vided^ h(ncevei\ That unless the United States shall return the prop-
ei-ty and the ^vharves, buildings, structures, and installations thereon 
and therein in the same condition as at the time of reentry the fair 
and reasonable restoration costs (which costs shall include the fair 
and reasonable costs of the reinstallation of any machinery, equip-
ment, or fixtures placed on the property prior to the reentry and 
removed therefrom by or at the request of the United States during 
the period of its occupancy), as agreed upon by the United States 
and the city of Newark or if the property is then under lease, then 
by the United States and the city's then lessee shall be allocated be-
tween the United States and the city of Newark or its then lessee as 
follows: 
70 S T A T . ] 
PUBLIC LAW 414-FEB. 20, 1956 
23 
"(a) If the annual rent paid by the United States is computed in 
accordance with subparagraph (1) hereinabove, then and in that 
event the United States shall pay no part of such costs; 
"(b) If the annual rent paid by the United States is computed in 
accordance with subparagraph (2) hereinabove, then and in that 
event the United States shall pay to the city of Newark or if the 
property is then under lease, then to the city's then lessee three-fifths 
of such costs; and 
"(c) If the annual rent paid by the United States is computed in 
accordance with subparagraph (3) hereinabove, the United States 
shall pay to the city of Newark or, if the property is then under lease, 
then to the city's then lessee so much of the said costs as is the same 
proportionate part of the total of such costs as the annual rental paid 
by the United States (less $60,000) is of the annual fair rental value. 
"In the computation of restoration costs damage caused by reason-
able wear and tear, by action of the elements, or by circumstances 
beyond the control of the United States other than acts of war or of 
enemies of the United States, shall be excluded. 
"If the United States and the city of Newark or its then lessee are 
unable to agree on the fair and reasonable restoration costs, then said 
costs shall be determined by the I'^nited States District Court in and 
for the District of New Jersey in accordance with the provisions of 
this Act and jurisdiction is conferred on that court for such purpose." 
SEC. 2. Nothing contained in this Act shall impair, or be construed 
to impair, in any manner whatsoever, any other right or rights the 
United States may now or liereafter possess to condemn, seize, lease, 
or otherAvise take over the property in accordance with the applicable 
l^rovisions of the laws of the United States. 
SEC. 3. The Secretary of the Army is authorized to execute a sui)ple-
ment to the contract of sale entered into Avith the city of Newark, New 
Jersey, pursuant to the Act of June 20,1936, in order to make effective 
the amendments made to said Act by this Act, but, in any event, the 
deed to be delivered to said city by the United States upon receipt of 
the final payment of the purchase price shall conform to these 
amendments. 
Approved February 18, 1956. 
Rights of U. S. 
Contract supple-
ment. 
Public Law 414 
CHAPTER 63 
A N A C T 
February 20, 1956 
To amend section 208 (b) of the Technical Changes Act of 1953, and for other 
[H. R. 2667] 
purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) section 208 
(b) of the Technical Changes Act of 1953 is amended by striking out 
"1950" and inserting in lieu thereof "194:7''. 
(b) The amendment made by subsection (a) shall be effective as if 
enacted as a part of section 208 (b) of the Technical Changes Act of 
1953. 
SEC. 2. Section 2053 of the Internal Revenue Code of 1954 (relating 
to deductions from the gross estate for expenses, indebtedness, and 
taxes) is hereby amended by redesignating subsection (d) to be sub-
section (e) and by adding after subsection (c) a new subsection as 
follows: 
"(d) 
CERTAIN STATE DEATEI TAXES.— 
"(1) GENERAL RULE.—Notwithstanding the provisions of sub-
section (c) (1) (B) of this section, for purposes of the tax imposed 
T 
e c h n i c a l 
C h a n g e s Act of 
1953» amendment. 
67 Stat. 624. 
Effect! vity. 
68A Stat. 390. 
26 u s e 2053.