An Act to amend section 113 (b) (1) (B) of the Internal Revenue Code with respect to the adjustment of the basis of property for depreciation, obsolescence, amortization, and depletion
PL 82-539 (H.R.3168), enacted 07/14/1952

66 S T A T . ] 
PUBLIC LAW 539-JULY 14, 1952 
629 
such air carrier, foreign air carrier, or ticket agent is engaged in such 
unfair or deceptive practices or unfair methods of competition, it shall 
order such air carrier, foreign air carrier, or ticket agent to cease and 
desist from such practices or methods of competition." 
SEC. 3. Section 902 (d) of the Civil Aeronautics Act of 1938, as 
amended, is amended to read as follows: 
49 u s e 622. 
"GRANTING REBATES 
"(d) Any air carrier, foreign air carrier, or ticket agent, or any 
officer, agent, employee, or representative thereof, who shall, know-
ingly and willfully, offer, grant, or give, or cause to be offered, granted, 
or given, any rebate or other concession in violation of the provisions 
of this Act, or who, by any device or means, shall, knowingly and 
willfully, assist, or shall willingly suffer or permit, any person to 
obtain transportation or services subject to this Act at less than the 
rates, fares, or charges lawfully in effect, shall be deemed guilty of a 
misdemeanor and, upon conviction thereof, shall be subject for each 
offense to a fine of not less than $100 and not more than $5,000." 
SEC. 4. Nothing contained in this Act shall be construed to enlarge 
or extend the jurisdiction of the Civil Aeronautics Board over trans-
portation not subject to the Civil Aeronautics Act of 1938, as amended. 
SEC. 5. This Act shall be effective upon enactment. 
Approved July 14, 1952. 
49 u s e 681. 
Effective date. 
Public Law 539 
CHAPTER 741 
AN ACT 
To amend section 113 (b) (1) (B) of the Internal Revenue Code with respect to 
the adjustment of the basis of property for depreciation, obsolescence, amortiza-
tion, and depletion. 
July 14, 1952 
[H. R. 3168] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That so much 
of section 113 (b) (1) (B) of the Internal Revenue Code (relating 
to adjustments to basis of property for depreciation, etc.) as precedes 
the word "Where" is hereby amended to read as follows: 
"(B) in respect of any period since February 28, 1913, 
for exhaustion, wear and tear, obsolescence, amortization, 
and depletion, to the extent of the amount— 
(i) allowed as deductions in computing net income 
under this chapter or prior income tax laws, and 
"(ii) resulting (by reason of the deductions so al-
lowed) in a reduction for any taxable year of the tax-
payer's taxes under this chapter (other than subchapter 
E), subchapter E of chapter 2, or prior income, war-
profits, or excess-profits tax laws, • 
but not less than the amount allowable under this chapter 
or prior income tax laws. Clause (ii) of this subparagraph 
shall not apply in respect of any period since February 
28, 1913, and before January 1, 1952, unless an election has 
been made under subsection (d)." 
SEC. 2. Section 113 of the Internal Revenue Code (relating to basis 
of property) is hereby amended by adding at the end thereof the fol-
lowing new subsection: 
"(d) 
ELECTION IN RESPECT OF DEPRECIATION, ETC., ALLOWED B E -
FORE 1952.—Any person may elect to have clause (ii) of subsection 
(b) (1) (B) apply in respect of periods since February 28, 1913, and 
Internal Revenue 
Code, amendment. 
53 Stat. 40. 
26 u s e 113. 
630 
PUBLIC LAW 540-JULY 14, 1952 
[66 ST A T . 
Applicability. 
before January 1, 1952. Such an election shall be made in such 
manner as the Secretary may by regulations prescribe, shall be ir-
revocable, and shall apply in respect of all property held by the 
person making the election at any time on or before the date on which 
the election was made and in respect of all periods since February 
28, 1913, and before January 1, 1952, during which such person held 
such property or for which adjustments must be made under sub-
section (b) (2). An election by a transferor, donor, or grantor made 
after the date of the transfer, gift, or grant of property shall not 
affect the basis of such property in the hands of the transferee, donee, 
or grantee. No such election may be made after December 31, 1952." 
SEC. 3. The amendments made by this Act shall apply in respect 
of taxable years beginning after December 31, 1938. Provisions hav-
ing the effect of such amendments shall be deemed to have been in-
cluded in the revenue laws respectively applicable to taxable years 
ending after December 31,1931, and beginning before January 1,1939. 
Approved July 14, 1952. 
July 14, 19S2 
[H. R. 5788] 
Public Law 540 
CHAPTER 742 
AN ACT 
To extend certain ten-year oil and gas leases. 
O i 1 and 
leases. 
60 Stat. 95 I. 
30 u s e 226. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That any lease issued 
for a ten-year term in exchange for an oil and gas prospecting permit 
pursuant to sections 13 and 17 of the Act entitled "An Act to promote 
the mining of coal, phosphate, oil, oil shale, gas, and sodium on the 
public domain", approved February 25, 1920, as amended by the Act 
of August 21,1935 (49 Stat. 674), and prior to amendment by the Act 
of August 8,1946, and upon which drilling operations were being dili-
gently prosecuted on the expiration date of such lease, prior to the 
effective date of this Act, is hereby reinstated effective from the expira-
tion date of the lease and shall continue in effect for a period of two 
years after the effective date of this Act and so long thereafter as oil 
or gas is produced in paying quantities, if, within ninety days after the 
enactment of this Act, payment is made, under the terms of such lease 
as reinstated and extended, of any sums due the United States for prior 
years. This Act shall not be applicable to any lands which, subsequent 
to such expiration and prior to the enactment of this Act, have been 
withdrawn from leasing, leased, or otherwise disposed of. 
Approved July 14, 1952. 
July 14, 1952 
[H. R. 8006] 
Public Law 541 
CHAPTER 743 
AN ACT 
To provide for an adjustment in tlie compensation of certain employees trans-
ferred from tlie field service of the Post Office Department to the General 
Services Administration pursuant to Reorganization Plan Numbered 18 of 
1950, and for other purposes. 
P o s t a l 
e m-
p l o y e e s 
t r a n s -
ferred to GSA. 
64 Stat. 1270. 
5 u s e 
1 3 3 z -
15 note. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That each employee 
transferred from the field service of the Post Office Department to the 
General Services Administration pursuant to Reorganization Plan 
Numbered 18 of 1950 who has completed sufficient service prior to 
such transfer, to entitle him, if he had not been so transferred, to an