An Act to incorporate the National Fund for Medical Education
PL 83-685 (S.1748), enacted 08/28/1954

68 
S T A T . ] 
PUBLIC LAW 685-AUG. 28, 1954 
Public Law 685 
CHAPTER 1036 
AN ACT 
To incorporate the National Fund for Medical Education. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the following 
persons: Donald, C. Balfour, M. D., Rochester, Minnesota; Louis H. 
Bauer, M. D., Hempstead, New York; Margaret Culkin Banning, 
Dulutli, Minnesota; E. N. Beesley, Indianapolis, Indiana; James F. 
Bell, Minneapolis, Minnesota; Elmer H. Bobst, New York, New 
York; Earl Bunting, Washington, District of Columbia; Carl Byoir, 
New York, New York; James L. Camp, Junior, Franklin, Virginia; 
Champ Carry, Chicago, Illinois; Robert S, Cheek, Nashville, Ten-
nessee ; Colby M. Chester, New York, New York; Frank A. Christen-
sen, New York, New York; Paul F. Clark, Boston, Massachusetts; 
Lucius D. Clay, New York, New York; S. Sloan Colt, Westhampton 
Beach, New York; George H. Coppers, New York, New York; Wil-
liam E. Cotter, Scarsdale, New York; C. R. Cox, New York, New 
York; Howard S. Cullman, New York, New York; Walter J. Cum-
mings, Chicago, Illinois; Willard K. Denton, New York, New York; 
Raoul E. Desvernine, Washington, District of Columbia; Michael 
Francis Doyle, Philadelphia, Pennsylvania; 
Victor Emanuel, New York, New^ York; Peter M. Fraser, Hartford, 
Connecticut; Bernard F. Gimbel, Greenwich, Connecticut; William B, 
Given, Junior, New York, New York; Robert M. Hanes, Winston-
Salem, North Carolina; David M. Heyman, New York, New York; 
Oveta Culp Hobby, Houston, Texas; Herbert Hoover, New York, New-
York ; B. Brewster Jennings, Glen Head, New York; Eric A. John-
ston, Washington, District of Columbia; Devereux C. Josephs, New 
York, New York; Meyer Kestnbaum, Chicago, Illinois: Edgar Kobak, 
New York, New York; Allan B, Kline, Chicago, Illinois; Robert Leh-
man, New York, New York; Samuel D. Leidesdorf, New York, New 
York; Leroy A. Lincoln, New York, New York; Ralph Lowell, Boston, 
Massachusetts; Benjamin E. Mays, Atlanta, Georgia; Neil McElroy, 
Cincinnati, Ohio; George W. Merck, West Orange, New Jersey; Don 
G. Mitchell, New York, New York; George G. Montgomery, San Fran-
cisco, California; Seeley G. Mudd, M. D., Los Angeles, California; 
Charles S. Munson, New York, New York; Herschel D. New-som, 
Washington, District of Columbia; Edward J. Noble, New York, New 
York; William S. Paley, New York, New York; Thomas I, Parkinson, 
New York, New York; F. D. Patterson, Tuskegee, Alabama; Joseph 
M. Proskauer, New York, New York; B. Earl Puckett, New York, 
New York; Victor F. Ridder, New York, New York; Owen J. Roberts, 
Philadelphia, Pennsylvania; Winthrop Rockefeller, Little Rock, Ar-
kansas ; Anna M, Rosenberg, New York, New York; T. J. Ross, New 
York, New York; Howard A. Rusk, M. D., New York, New York; 
Frank P. Samford, Birmingham, Alabama; Lester N. Selig, Chicago, 
Illinois; Eustace Seligman, New York, New York; Spyros P. Skouras, 
New York, New York; Alfred P. Sloan, Junior, New ^ork. New York; 
George F, Smith, New Brunswick, New Jersey; Harold V. Smith, New 
York, New York; Harold E. Stassen, Washington, District of Colum-
bia ; John P. Stevens, Junior, New York, New York; William C. Stolk, 
New York, New York; Harvey B, Stone, M. D. Baltimore, Maryland; 
Reese H. Taylor, Los Angeles, California; Juan T. Trippe, Green-
wich, Connecticut; Thomas J. Watson, New York, New York; Ernest 
T. Weir, Pittsburgh, Pennsylvania; Georjge Whitney, New York, New 
York; Robert E. Wilson, Chicago, Illinois; R. W. Woodruff, Atlanta, 
Georgia; Wilson W. Wyatt, Louisville, Kentucky; J. D. Zellerbach, 
San Francisco, California; and John S. Zinsser, Philadelphia, Penn-
August 28, 1954 
[S, 1748] 
National 
F u n d 
for Medical Educa* 
tion. 
Inc orpor 
ation* 
892 
PUBLIC LAW 685-AUG. 28, 1954 
[68 S T A T . 
sylvania; and their successors, are hereby created and declared to be a 
body corporate of the District of Columbia, where its legal domicile 
shall be, by the name of the National Fund for Medical Education 
(hereinafter referred to as the corporation) and by such name shall 
be known and have perpetual succession and the powers, limitations, 
and restrictions herein contained. 
COMPLETION OF ORGANIZATION 
SEC. 2. A majority of the persons named in the first section of this 
Act are authorized to complete the organization of the corporation by 
the selection of officers and employees, the adoption of a constitution 
and bylaws, ngt inconsistent with this Act, and the doing of such other 
acts as may be necessary for such purpose. 
PURPOSES o r THE CORPORATION 
SEC. 3. The purposes of the corporation shall be to raise from private 
sources, disperse and administer funds for medical education and in 
connection therewith to take other appropriate action to promote and 
foster the following objectives: 
(1) The interpretation of the needs of medical education to the 
American public; 
(2) The encouragement of the growth, development and advance-
ment of constantly improving standards and methods in the education 
and training of all medical manpower in the Nation; and 
(3) The preservation of academic freedom in the institutions of 
medical education. 
CORPORATE POWERS 
SEC. 4. The corporation shall have power— 
(1) to have succession by its corporate name; 
(2) to sue and be sued, complain and defend in any court of 
competent jurisdiction; 
(3) to adopt, use, and alter a corporate seal; 
(4) to choose such officers, managers, agents, and employees as 
the business of the corporation may require; 
(5) to adopt, amend, and alter a constitution and bylaws, not 
inconsistent with the laws of the United States or any State in 
which the corporation is to operate, for the management of its 
property and the regulation oi its affairs; 
(6) to contract and be contracted with; 
(7) to take by lease, gift, purchase, grant, devise, or bequest 
from any private corporation, association, partnership, firm or 
individual and to hold any property, real, personal or mixed, 
necessary or convenient for attaining the objects and carrying 
into effect the purposes of the corporation, subject, however, to 
applicable provisions of law of any State (A) governing the 
amount or kind of property which may be held by, or (B) other-
wise limiting or controlling the ownership of property by, a cor-
poration operating in such State; 
(8) to transfer, convey, lease, sublease, encumber and other-
wise alienate real, personal or mixed property; and 
(9) to borrow money for the purposes of the corporation, issue 
bonds therefor, and secure the same by mortgage, deed of trust, 
pledge or otherwise, subject in every case to all applicable provi-
sions of Federal and State laws. 
68 S T A T . ] 
PUBLIC LAW 685-AUG. 28, 1954 
893 
PRINCIPAL O F F I C E ; SCOPE OF ACTIVITIES; DISTRICT OF COLUMBIA AGENT 
SEC. 5. (a) The principal office of the corporation shall be located 
in New York City, New York, or in such other place as may be later 
determined by the board of directors, but the activities of the corpo-
ration shall not be confined to that place, but may be conducted 
throughout the various States, Territories, and possessions of the 
United States. 
(b) The corporation shall have in the District of Columbia at all 
times a designated agent authorized to accept service of process for 
the corporation; and notice to or service upon such agent, or mailed 
to the business address of such agent, shall be deemed notice to or 
service upon the corporation. 
MEMBERSHIP; VOTING RIGHTS 
SEC. 6. (a) Eligibility for membership in the corporation and the 
rights, privileges, and designation of classes of members shall, except 
as provided in this Act, be determined as the constitution and bylaws 
of the corporation may provide. 
(b) Each member of the corporation, other than honorary, sustain-
ing or associate members, shall have the right to one vote on each 
matter submitted to a vote at all meetings of the members of the 
corporation. 
BOARD OF DIRECTORS : COMPOSITION, RESPONSIBILITIES 
SEC. 7 (a) Upon the enactment of this Act the membership of 
the initial board of directors of the corporation shall consist of the 
present members of the executive committee of the National Fund 
for Medical Education, Incorporated, the corporation described in 
section 16 of this Act, or such of them as may then be living and 
are qualified members of said executive committee, to wit: Earl 
Bunting, Washington, District of Columbia; Colby M. Chester, New 
York, New York; S. Sloan Colt, Westhampton Beach, New York; 
William E. Cotter, Scarsdale, New York; Victor Emanuel, New York, 
New York; William B. Given, Junior, New York, New York; Herbert 
Hoover, New York, New York; Devereux C. Josephs, New York, New 
York; Samuel D. Leidesdorf, New York, New York; Leroy A. Lin-
coln, New York, New York; Eustace Seligman, New York, New York; 
Juan T. Trippe, Greenwich, Connecticut; and John S. Zinsser, Phila-
delphia, Pennsylvania; together with the following members of the 
medical profession, namely, Donald C. Balfour, M. D., Eochester, 
Minnesota; Louis H. Bauer, M. D., Hempstead, New York; Howard A. 
Eusk, M. D., New York, New York; and Harvey B. Stone, M. D., 
Baltimore, Maryland. 
(b) Thereafter, the board of directors of the corporation shall 
consist of such number (not less than fifteen and not more than twenty-
five, four of whom shall at all times be members of the medical pro-
fession), shall be selected in such manner (including the filling of 
vacancies), and shall serve for such term as may be prescribed in the 
constitution and bylaws of the corporation. 
(c) The board of directors shall be the governing board of the 
corporation and, during the intervals between the meetings of mem-
bers, shall be responsible for the general policies and program of the 
corporation and for the control of all contributed funds as may be 
raised by the corporation. 
894 
PUBLIC LAW 685-AUG. 28, 1954 
[68 STAT. 
OFFICERS ; ELECTION AND DUTIES OF OFFICERS 
SEC. 8. (a) The officers of the corporation shall be a chairman of 
the board of directors, a president, one or more vice presidents (as 
may be prescribed in the constitution and bylaws of the corporation), 
a secretary, and a treasurer, and one or more assistant secretaries and 
assistant treasurers as may be provided in the constitution and bylaws. 
(b) The officers of the corporation shall be elected in such manner 
and for such terms and with such duties as may be prescribed in the 
constitution and bylaws of the corporation. 
r 
USE OF I N C O M E ; LOANS TO OFFICERS, DIRECTORS, OR E M P L O Y E E S 
SEC. 9. (a) No part of the income or assets of the corporation shall 
inure to any of its members, directors, or officers as such, or be dis-
tributable to any of them during the life of the corporation or upon 
its dissolution or final liquidation. Nothing in this subsection, how-
ever, shall be construed to prevent the payment of compensation to 
officers of the corporation in amounts approved by the board of direc-
tors of the corporation. 
(b) The corporation shall not make loans to its officers, directors, 
or employees. Any director who votes for or assents to the making of a 
loan or advance to an officer, director or employee of the corporation, 
and any officer who participates in the making of such a loan or 
advance, shall be jointly and severally liable to the corporation for 
the amount of such loan until the repayment thereof. 
fi,. 
NONPOLITICAL NATURE OF CORPORATION 
SEC. 10, The corporation, and its officers and directors as such, shall 
not contribute to or otherwise support or assist any political party 
or candidate for public office. 
LIABILITY FOR ACTS OF OFFICERS AND AGENTS 
SEC. 11. The corporation shall be liable for the acts of its officers 
and agents when acting within the scope of their authority. 
PROHIBITION AGAINST ISSUANCE OF STOCK OR PAYMENT OF DIVIDENDS 
SEC. 12. The corporation shall have no power to issue any shares of 
stock or to declare or pay any dividends. 
BOOKS AND R E C O R D S ; INSPECTION 
SEC. 13. The corporation shall keep correct and complete books and 
records of account and shall keep minutes of the proceedings of its 
members, board of directors, and committees having any authority 
under the board of directors; and it shall also keep at its principal 
office a record of the names and addresses of its members entitled to 
vote. All books and records of the corporation may be inspected by 
any member entitled to vote, or his agent or attorney, for any proper 
purpose, at any reasonable time. 
AUDIT OF FINANCIAL TRANSACTIONS 
SEC. 14. (a) The financial transactions shall be audited annually 
by an independent certified public accountant in accordance with the 
principles and procedures applicable to commercial corporate trans-
actions. The audit shall be conducted at the place or places where 
the accounts of the corporation are normally kept. 
All books. 
Report to C on-
gress. 
68 S T A T . ] 
PUBLIC LAW 687-AUG. 28, 1954 
895 
accounts, financial records, reports, files, and all other papers, things, 
or property belonging to or in use by the corporation and necessary 
to facilitate the audit shall be made available to the person or persons 
conducting the audit; and full facilities for verifying transactions 
with the balances or securities held by depositories, fiscal agents, and 
custodians shall be afforded to such person or persons. 
(b) A report of such audit shall be made by the corporation to the 
Congress not later than March 1 of each year. The report shall set 
forth the scope of the audit and shall include a verification by the 
person or persons conducting the audit of statements of (1) assets 
and liabilities, (2) capital and surplus or deficit, (3) surplus or deficit 
analysis, (4) income and expense, and (5) sources and application of 
funds. Such report shall not be printed as a public document. 
USE o r ASSETS ON DISSOLUTION OR LIQUIDATION 
SEC. 15. Upon dissolution or final liquidation of the corporation, 
after discharge or satisfaction of all outstanding obligations and 
liabilities, the remaining assets, if any, of the corporation shall be dis-
tributed in accordance with the determination of the board of directors 
of the corporation and in compliance with the constitution and bylaws 
of the corporation and all Federal and State laws applicable thereto. 
TRANSFER OF ASSETS 
SEC. 16. The corporation may acquire the assets of the National 
Fund for Medical Education, Incorporated, a corporation organized 
under the laws of the State of New York, upon discharging or satis-
factorily providing for the payment and discharge of all of the liabil-
ity of such corporation and upon complying with all laws of the 
State of New York applicable thereto. 
RESERVATION OF RIGHT TO AMEND OR REPEAL CHARTER 
SEO. 17. The right to alter, amend, or repeal this Act is expressly 
reserved. 
Approved August 28, 1954. 
Public Law 686 
CHAPTER 1037 
^^ 
A C T 
August 28, 1954 
[H. R. 6672] 
To provide for a tempoi'ary increase in the public debt limit. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That during the 
period beginning on the date of enactment of this Act and ending on 
June 30, 1955, the public debt limit set forth in the first sentence of 
section 21 of the Second Liberty Bond Act, as amended, shall be tem- 
^\ ^^^ ^^:^ 
porarily increased by $6,000,000,000. 
Approved August 28, 1964. 
Public Law 687 
CHAPTER 1038 
- ' ^ ^ ^ " ^ 
August 28, 1954 
Authorizing the Secretary of the Interior to adjust or cancel certain charges on 
[R- R- 7813] 
the Milk River project. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled. That the Secretary ect^^^Monlr" ^'°^'