An Act to amend and extend the Defense Production Act of 1950 and the Housing and Rent Act of 1947, as amended
PL 82-96 (S.1717), enacted 07/31/1951

65 STAT.] 
PUBLIC LAW 96—JULY 31, 1951 
131 
eradicate the predatory sea lampreys of the Great Lakes", approved 
August 8, 1946, as amended, is hereby amended to read as follows: 
"The cost of the investigations and studies authorized in this section 
shall not exceed $359,000 for the first year, $216,000 for the fiscal year 
ending June 30, 1951, and $500,000 for the fiscal year ending June 
30,1952.". 
Approved July 30, 1951. 
60 Stat. 930. 
16 U. S. C. §§ 921-
923. 
Public Law 95 
CHAPTER 274 
AN ACT 
To amend section 3 of an Act authorizing tlie Commissioners of the District of 
Columbia to settle claims and suits against the District of Columbia, approved 
February 11, 1929, and for other purposes. 
July 31, 1951 
[S. 262] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 3 of the 
Act aj)proved February 11, 1929, entitled "An Act authorizing the 
Commissioners of the District of Columbia to settle claims and suits 
against the District of Columbia" is amended by striking out of the 
*first sentence of said section the figures "$5,000" and substituting in 
lieu thereof the figures "$10,000". 
SEC. 2. Add a new section to said Act to be numbered section 5 and 
to read as follows: 
"SEC. 5. That upon a report by the corporation counsel of the Dis-
trict of Columbia showing in detail the just and true amount and con-
dition of any claim or suit which the District of Columbia may now 
or hereafter have against any person, firm, association, or corporation, 
and the terms upon which the same may be compromised, and stating 
that in his opinion a compromise of such claim or suit would be for 
the best interest of the District of Columbia, the Commissioners of 
the District of Columbia be, and they hereby are, authorized to com-
promise such claim or suit accordingly: Provided^ however^ That no 
claim or suit so compromised shall be reduced by an amount greater 
than $10,000: And provided further^ That this section shall not apply 
to claims or suits for taxes or special assessments." 
Approved July 31, 1951. 
District of Colum-
bia. 
Settlement of claims 
and suits. 
45 Stat. 1160. 
D. C. Code § 1-904. 
Public Law 96 
CHAPTER 275 
AN ACT 
To amend and extend the Defense Production Act of 1950 and the Hous^ing and 
Rent Act of 1947, as amended. 
.July 31, 1951 
[S. 1717] 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Defense Production Act Amendments of 1951". 
Defense Production 
Act Amendments of 
1951 
TITLE I—AMENDMENTS TO DEFENSE PKODUCTION 
ACT OF 1950 
PRIORITIES AND ALLOCATIONS 
SEC. 101. (a) Section 101 of the Defense Production Act of 1950 
IS amended by adding at the end thereof the following: "No restric-
tion, quota, or other limitation shall be placed upon the quantity of 
livestock which may be slaughtered or handled by any processor," 
04 Stat. 798. 
60 U. S. C. 
§ 2061. 
50 U. S. 
§2071. 
C. app. 
132 
PUBLIC LAW 96—JULY 31, 1951 
[65 STAT. 
50 u . 
§2072. 
-50 U. S. C. 
51 2071, 2154. 
8. c. app 
^b) Section 102 of the Defense Production Act of 1950 is amended 
by striking out the third sentence and inserting in lieu thereof the 
following sentences: "In making such designations the President may 
prescribe such conditions with respect to the accumulation of mate-
rials in excess of the reasonable demands of business, personal, or 
home consumption as he deems necessary to carry out the objectives 
of this Act. 
This section shall not be construed to limit the authority 
app- contained in sections 101 and 704 of this Act." 
(c) Title I of the Defense Production Act of 1950 is hereby amended 
by adding the following section: 
"SEC. 104. Import controls of fats and oils (including oil-bearing 
materials, fatty acids, and soap and soap powder, but excluding petro-
leum and petroleum products and coconuts and coconut products), 
peanuts, butter, cheese and other dairy products, and rice and rice 
products are necessary for the protection of the essential security in-
terests and economy of the United States in the existing emergency in 
international relations, and no imports of any such commodity or 
product shall be admitted to the United States until after June 30, 
1952, which the Secretary of Agriculture determines would (a) impair 
or reduce the domestic production of any such commodity or product 
below present production levels, or below such higher levels as the Sec-
retary of Agriculture may deem necessary in view of domestic and 
international conditions, or (b) interfere with the orderly domestic 
storing and marketing of any such commodity or product, or (c) 
result in any unnecessary burden or expenditures under any Gov-
ernment price support program. 
The President shall exercise the 
authority and powers conferred by this section." 
50 u. s. 
§2081. 
C. app. 
Acquisition of real 
property. 
40 U. S. C. §§ 2.57, 
258. 
Condemnation pro-
ceedings. 
AUTHORITY TO REQUISITION AND CONDEMN 
SEC. 102. (a) Title I I of the Defense Production Act of 1950 is 
amended by adding to the heading thereof the words "AND 
CONDEMN". 
(b) Section 201 of the Defense Production Act of 1950 is amended— 
(1) By adding at the end of subsection (a) the following new sen-
tence: "No real property (other than equipment and facilities, and 
buildings and other structures^ to be demolished and used as scrap or 
second-hand materials) shall be acquired under this subsection." 
(2) By adding after subsection (a) the following new subsection: 
"(b) Whenever the President deems it necessary in the interest 
of national defense, he may acquire by purchase, donation, or other 
means of transfer, or may cause proceedings to be instituted in any 
court having jurisdiction of such proceedings to acquire by condemna-
tion, any real property, including facilities, temporary use thereof, 
or other interest therein, together with any personal property located 
thereon or used therewith, that he deems necessary for the national 
defense, such proceedings to be in accordance with the Act of August 
1, 1888 (25 Stat. 357), as amended, or any other applicable Federal 
statute. 
Before condemnation proceedings are instituted pursuant to 
this section, an effort shall be made to acquire the property involved 
by negotiation unless, because of reasonable doubt as to the identity 
of the owner or owners, because of the large number of persons with 
whom it would be necessary to negotiate, or for other reasons, the 
effort to acquire by negotiation would involve, in the judgment of 
the President, such delay in acquiring the property as to be contrary 
to the interest of national defense. 
In any condemnation proceeding 
instituted pursuant to this section, the court shall not order the party 
in possession to surrender possession in advance of final judgment 
unless a declaration of taking has been filed, and a deposit of the 
amount estimated to be just compensation has been made, under the 
65 STAT. 
PUBLIC LAW 96—JULY 31, 1951 
133 
first section of the Act of February 26,1931 (46 Stat. 1421), providing 
for such declarations. 
Unless title is in dispute, the court, upon 
application, shall promptly pay to the owner at least 75 per centum 
of the amount so deposited, but such payment shall be made without 
prejudice to any party to the proceeding. Property acquired under 
this section may be occupied, used, and improved for the purposes 
of this section prior to the approval of title by the Attorney General 
as required by section 355 of the Revised Statutes, as amended." 
(3) By striking out "requisitioned" in the presently designated 
subsection (c), and inserting in lieu thereof "acquired". 
(4) By redesignating subsections (b) and (c) as subsections (c) 
and (d),respectively. 
40 IT. S. C. § 258a. 
33 U. S. C. § 733. 
EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY . 
SEC. 103. (a) Section 303 of such Act is amended to read as follows: 
"SEC. 303. (a) To assist in carrying out the objectives of this Act, 
the President may make provision (1) for purchases of or commit-
ments to purchase metals, minerals, and other materials, for Govern-
ment use or resale; and (2) for the encouragement of exploration, 
development, and mining of critical and strategic minerals and 
metals: Provided^ however^ That purchases for resale under this sub-
section shall not include that part of the supply of an agricultural 
commodity which is domestically produced except insofar as such 
domestically produced supply may be purchased for resale for indus-
trial uses or stockpiling, and no commodity purchased under this sub-
section shall be sold at less than the established ceiling price for such 
commodity (except that minerals and metals shall not be sold at less 
than the established ceiling price, or the current domestic market 
price, whichever is lower), or, if no ceiling price has been established, 
the higher of the following: (i) the current domestic market price 
for such commodity, or (ii) the minimum sale price established for 
agricultural commodities owned or controlled by the Commodity 
Credit Corporation as provided in section 407 of Public Law 439, 
Eighty-first Congress: Provided further^ however^ That no purchase 
or commitment to purchase any imported agricultural commodity 
shall be made calling for delivery more than one year after the 
expiration of this Act. 
(b) Subject to the limitations in subsection (a), purchases and 
commitments to purchase and sales .under such subsection may be 
made without regard to the limitations of existing law, for such quan-
tities, and on such terms and conditions, including advance payments, 
and for such periods, but not extending beyond June 30, 1962, as the 
President deems necessary, except that purchases or commitments to 
purchase involving higher than established ceiling prices (or if there 
be no established ceiling prices, currently prevailing market prices) 
or anticipated loss on resale sliall not be made unless it is determined 
that supply of the materials could not be effectively increased at lower 
prices or on terms more favorable to the Government, or that such 
purchases are necessary to assure the availability to the United States 
of overseas supplies. 
"(c) If the President finds— 
"(1) that under generally fair and equitable ceiling prices for 
any raw or nonprocessed material, there will result a decrease in 
supplies from high-cost sources of such material, and that the 
continuation of such supplies is necessary to carry out the ob-
jectives of the Act; or 
"(2) that an increase in cost of transportation is temporary in 
character and threatens to impair maximum production or supply 
in any area at stable prices of any materials, 
50 U. 
12093. 
S. C. app. 
Metals, minerals, 
etc. 
Limitations. 
63 Stat. 1055. 
7 U. S. C. § 1427. 
Subsidy paymentsi 
134 
PUBLIC LAW 96—JULY 31, 1951 
[65 STAT. 
Procurement power. 
Installation of addi-
tional equipment, etc. 
he may make provision for subsidy payments on any such domestically 
produced material other than an agricultural commodity in such 
amounts and in such manner (including purchases of such material 
and its resale at a loss without regard to the limitations of existing 
law), and on such terms and conditions, as he determines to be neces-
sary to insure that supplies from such high-cost sources are continued, 
or that maximum production or supply in such area at stable prices 
of such materials is maintained, as the case may be. 
"(d) The procurement power granted to the President by this sec-
tion shall include the power to transport and store and have processed 
and refined, any materials procured under this section. 
"(e) When in his judgment it will aid the national defense, the 
President is authorized to install additional equipment, facilities, 
processes or improvements to plants, factories, and other industrial 
facilities owned by the United States Government, and to install 
government-owned equipment in plants, factories, and other industrial 
facilities owned by private persons." 
(b) Subsection (b) of section 304 of the Defense Production Act of 
1950 is amended by striking out the proviso in the first sentence and 
inserting in lieu thereof the following: ''''Provided^ That the amount 
borrowed under the provisions of this section by all such borrowers 
shall not exceed an aggregate of $2,100,000,000 outstanding at any one 
time: Provided further^ That when any contract, agreement, loan, or 
other transaction heretofore or hereafter entered into pursuant to sec-
tion 302 or 303 imposes contingent liability upon the United States, 
such liability shall be considered for the purposes of sections 3679 
and 3732 of the Revised Statutes, as amended, as an obligation only to 
the extent of the probable ultimate net cost to the United States under 
Report to Congress, such transaction; and the President shall submit a report to the Con-
gress not less often than once each quarter setting forth the gross 
amount of each such transaction entered into by any agency oi the 
United States Government under this authority and the basis for 
determining the probable ultimate net cost to the United States 
thereunder." 
(c) Section 304 of the Defense Production Act of 1950 is further 
amended by striking out subsection (c). 
60 U. 
!20«4. s. c. 
app. 
60 
U. S. 
C. 
app. 
§§ 
2092, 
2093. 
31 
U. 
8. 
C. 
§665; 41 
U. 
S. C. §11. 
50 U. 
i 
2102. 
S. C. app. 
63 
Stat. 
1061; 
50 
Stat. 
246. 
7 U. S. C. §§ 1421 
note, 674. 
PRICE AND WAGE STABILIZATION 
SEC. 104. (a) The second sentence of paragraph (3) of subsection 
(d) of section 402 of the Defense Production Act of 1950 is amended 
by striking out the period at the end thereof and inserting in lieu 
thereof the following: "; and equitable treatment shall be accorded to 
all such processors." 
(b) Paragraph (3) of subsection (d) of section 402 of the Defense 
Production Act of 1950 is amended by inserting after the third sen-
tence thereof the following new sentence: "No ceiling shall be estab-
lished or maintained for any agricultural commodity below 90 per 
centum of the price received (by grade) by producers on May 19,1951, 
as determined by the Secretary of Agriculture." 
(c) The fourth sentence of paragraph (3) of subsection (d) of 
section 402 of the Defense Production Act of 1950 is amended to read 
as follows: "Nothing contained in this Act shall be construed to 
modify, repeal, supersede, or affect the provisions of either (1) the 
Agricultural Act of 1949, or (2) the Agricultural Marketing Agree-
ment Act of 1937, as amended, or to invalidate any marketing agree-
ment, license, or order, or any provision thereof or amendment thereto, 
heretofore or hereafter made or issued under the provisions of the 
Agricultural Marketing Agreement Act of 1937, as amended." 
65 STAT.] 
PUBLIC LAW 96—JULY 31, 1951 
135 
Ceiling on materials 
and services. 
(d) Paragraph (3) of subsection (d) of section 402 of the Defense 
Production Act of 1950 is amended by adding a new sentence at the 
end thereof to read as follows: "No ceiling prices to producers for 
Miik and butterfat. 
milk or butterfat used for manufacturing dairy products shall be 
issued until and unless the Secretary of Agriculture shall determine 
that such prices are reasonable in view of the price of feeds, the avail-
able supplies of feeds, and other economic conditions which affect 
the supply and demand for dairy products, and will insure a sufficient 
quantity of dairy products and be in the public interest. 
The prices 
so determined shall be adjusted by him for use, grade, quality, loca-
tion, and season of the year." 
(e) Subsection (d) of section 402 of the Defense Production Act 
of 1950 is amended by adding at the end thereof the following new 
*
* 
paragraph: 
"(4) After the enactment of this paragraph no ceiling price on 
any material (other than an agricultural commodity) or on any service 
shall become effective which is below the lower of (A) the price pre-
vailing just before the date of issuance of the regulation or order 
establishing such ceiling price, or (B) the price prevailing during 
the period January 25,1951, to February 24,1951, inclusive. 
Nothing 
in this paragraph shall prohibit the establishment or maintenance of 
a ceiling price with respect to any material (other than an agricul-
tural commodity) or service which (1) is based upon the highest price 
between January 1, 1950, and June 24, 1950, inclusive, if such ceiling 
price reflects adjustments for increases or decreases in costs occurring 
subsequent to the date on which such highest price was received and 
prior to July 26, 1951, or (2) is established under a regulation issued 
prior to the enactment of this paragraph. 
Upon application and a 
proper showing of his prices and costs by any person subject to a ceil-
ing price, the President shall adjust such ceiling price in the manner 
prescribed in clause (1) of the preceding sentence. 
For the purposes 
of this paragraph the term "costs" includes material, indirect and 
direct labor, factory, selling, advertising, office, and all other produc-
tion, distribution, transportation and administration costs, except 
such as the President may determine to be unreasonable and excessive." 
(f) Subsection (e) of section 402 of the Defense Production Act of 
1950 is amended by striking out "Rates or fees charged for professional 
services" in paragraph (ii) and inserting in lieu thereof: "Rates or 
fees charged for professional services; w^ages, salaries, and other com-
pensation paid to physicians employed in a professional capacity by 
licensed hospitals, clinics and like medical institutions for the care of 
the sick or disabled; wages, salaries and other compensation paid to 
attorneys licensed to practice law employed in a professional capacity 
by an attorney or firm of attorneys engaged in the practice of his or 
their profession". 
(g) Subsection (e) of section 402 of the Defense Production Act of 
1950 is hereby amended by adding at the end thereof the following 
new paragraph: 
"(vii) Prices charged and wages paid for services performed 
by barbers and beauticians." 
(h) Section 402 of the Defense Production Act of 1950 is amended 
by adding at the end thereof the following new subsections: 
"(J) Where the sale or delivery of a material or service makes the 
Tax liability. 
person selling or delivering it liable for a State or local gross receipts 
tax or gross income tax, he may receive for the material or service 
involved, in addition to the ceiling price, (1) an amount equal to the 
amount of all such State and local taxes for which the transaction 
makes him liable, or (2) one cent, whichever is greater. For the pur-
poses of the preceding sentence, the amount of tax liability shall be 
Professional serv-
ices. 
Barbers and beau-
50 U. 
2102. 
S. C. app. 
136 
PUBLIC LAW 96—JULY 31, 1951 
[65 STAT. 
Exception. 
"Seller of a material 
at retail or wholesale." 
50 U . 
I 2105. 
50 U 
i 2109. 
Injunctions, etc. 
computed on shipping units at the ceiling price, and a fractional part 
of a cent in the amount of tax liability shall be disregarded unless it 
amounts to one-half cent or more, in which case it shall be increased 
to one cent. 
"(k) No rule, regulation, order or amendment thereto shall here-
after be issued under this title, which shall deny to sellers of materials 
at retail or wholesale their customary percentage margins over costs 
of tlie materials during the period May 24, 1950, to June 24, 1950, or 
on such other nearest representative date determined under section 
402 (c), as shown by their records during such period, except as to any 
one specific item of a line of material sold by such sellers which is in 
short supply as evidenced by specific government action to encourage 
production of the item in question. 
No such exception shall reduce 
such customary margins of sellers at retail or wholesale beyond the 
amount found by the President, in writing, to be generally equitable 
and proportionate in relation to the general reductions in the cus-
tomary margins of all other classes of persons concerned in the pro-
duction and distribution of the excepted item of material. 
"Prior to making any finding that a specific item of material shall 
be so excepted, or as to the amount of the reductions in customary 
margins to be imposed upon retail and wholesale sellers of such item, 
the President shall consult with representatives of the affected retail 
and wholesale sellers concerning the basis for and the amount of the 
exception which is proposed with respect to any such item. 
"For purposes of this section a person is a 'seller of a material at 
retail or wholesale' to the extent that such person purchases and resells 
an item of material without substantially altering its form; or to the 
extent that such person sells to ultimate consumers except (1) to 
government and institutional consumers and (2) to consumers who 
purchase for consumption in the course of trade or business." 
(i) Subsection (a) of section 405 of the Defense Production Act 
of 1950 is amended by adding at the end thereof the following: "The 
President shall also prescribe the extent to which any payment made, 
either in money or property, by any person in violation of any such 
regulation, order, or requirement shall be disregarded by the executive 
departments and other governmental agencies in determining the costs 
or expenses of any such person for the purposes of any other law or 
regulation, including bases in determining gain for tax purposes." 
(j) Subsection (a) of section 409 of the Defense Production Act of 
c. app. 1950 is amended to read as follows: 
"(a) Whenever in the judgment of the President any person has 
engaged or is about to engage in any acts or practices which constitute 
or will constitute a violation of any provision of section 405 of this 
title, he may make application to any district court of the United 
States or any United States court of any Territory or other place 
subject to the jurisdiction of the United States for an order enjoining 
such acts or practices, or for an order enforcing compliance with such 
provision, and upon a showing by the President that such person has 
engaged or is about to engage in any such acts or practices a permanent 
or temporary injunction, restraining order, or other order, with or 
without such injunction or restraining order, shall be granted without 
bond." 
(k) The second sentence of subsection (c) of section 409 of the 
Defense Production Act of 1950 is amended by striking out the words 
"but in no event shall such amount exceed the amount of the over-
charge, or the overcharges, plus $10,000,". 
(1) Section 409 of the Defense Production Act of 1950 is further 
amended by adding at the end thereof the following new subsections: 
"(d) Tlie President shall also prescribe the extent to which any 
payment made by way of fine pursuant to subsection (b) of this section 
S. C. app. 
65 STAT.] 
PUBLIC LAW 96—JULY 31, 1951 
137 
409, or any payment made to the United States or to any buyer in 
compromise or satisfaction of any liability or of any right of action, 
suit, or judgment, authorized pursuant to subsection (c) of this section 
409 for selling any material or service, in violation of a regulation or 
order providing a ceiling or ceilings, shall be disregarded by the 
executive departments and other governmental agencies in determining 
the costs or expenses of any such person for the purposes of any other 
law or regulation. 
"(e) The term 'court of competent jurisdiction' as used in this sec-
tion shall mean any Federal court of competent jurisdiction regardless 
of the amount in controversy and any State or Territorial court of 
competent jurisdiction." 
SEC. 105. (a) Section 40e3 of the Defense Production Act of 1950 
is hereby amended by changing the period at the end of the first 
sentence to a colon and adding the following: '"''Provided^ howe'ver, 
That the President shall administer any controls over the wages or 
salaries of employees subject to the provisions of the Railway Labor 
Act, as amended, through a separate board or panel having juris-
diction only over such employees." 
(b) Section 502 of the Defense Production Act of 1950 is amended 
by changing the period at the end of the last sentence thereof to a 
colon and adding the following: '•''Provided^ however^ That in any 
dispute between employees and carriers subject to the Railway Labor 
Act, as amended, the procedures of such Act shall be followed for 
the purpose of bringing about a settlement of such dispute. 
Any 
agency provided for by such Act, including any panel or panel board 
established by the President for the adjustment of disputes arising 
under the Railway Labor Act, as a prerequisite to effecting or rec-
ommending a settlement of such dispute, shall make a specific finding 
and certification that the changes proposed by such settlement or 
recommended setttlement, are consistent with such standards as may 
then be in effect, established by or pursuant to law, for the purpose 
of controlling inflationary tendencies: Provided further^ That in any 
nondisputed wage or salary adjustments proposed as a result of 
voluntary agreement through collective bargaining, mediation, or 
otherwise, the same finding and certification of consistency with exist-
ing stabilization policy shall be made by the separate panel, chairman 
thereof, or boards as established and authorized by the President. 
Where such finding and certification are made by such agency, panel, 
chairman thereof, or boards, they shall after approval by the Eco-
nomic Stabilization Administrator be conclusive and it shall then be 
lawful for the employees and carriers, by agreement, to put into effect 
the changes proposed by the settlement, recommended settlement, or 
voluntary proposal with respect to which such findings and certifica-
tion were made." 
(c) The second sentence of section 503 of the Defense Production 
Act of 1950 is hereby amended to read as follows: "No action incon-
sistent with the provisions of the Fair Labor Standards Act of 1938, 
as amended, other Federal labor standards statutes, the Labor Man-
agement Relations Act, 1947, the Railway Labor Act, as amended, or 
with other applicable laws shall be taken under this title." 
"Court of compe-
tent jurisdiction." 
50 U. S. C. app. 
§ 2103. 
Railway labor con-
trols. 
.44 Stat. 577. 
45 U. S. C. § 151. 
50 U. S. C. app. 
§ 2122. 
Settlement of labor 
disputes. 
60 U. 8. C. app. 
§ 2123. 
S2Stat.l060;61Sta,t. 
136; 44 Stat. 577. 
29 U. S. C. §§ 201, 
141; 45 U. S. C. § 151. 
CONTROL OF CREOrr 
SEC. 106. (a) Section 601 of the Defense Production Act of 1950 
is amended by adding at the end thereof the following new paragraph: 
"In the exercise of its authority under this section, the Board shall 
not (1) require a down payment of more than one-third or fix a maxi-
mum maturity of less than eighteen months in connection with instal-
ment credit extended for the purchase of a new or used automobile, 
50 U. S. 
§ 2131. 
C. app. 
Down payment. 
138 
PUBLIC LAW 96—JULY 31, 1951 
[65 STAT. 
or (2) require a down payment of more than 15 per centum or fix a 
maximum maturity of less than eighteen months in connection with 
instalment credit extended for the purchase of any household appli-
ance (including phonographs and radios and television sets), or 
(3) require a down payment of more than 15 per centum or fix a maxi-
mum maturity of less than eighteen months in connection with instal-
ment credit extended for the purchase of household furniture and 
floor coverings (the down payments required by the Board in the 
exercise of its authority under paragraphs (1), (2), and (3) may 
be made in cash, or by trade-in or exchange of property, or by a com-
bination of cash and trade-in or exchange of property), or (4) require 
a down payment of more than 10 per centum or fix a maximum matu-
rity of less than thirty-six months in connection with instalment 
credit extended for residential repairs, alterations, or improvements 
or require any down payment on roofing or siding repairs, alterations 
or improvements in advance of completion thereof." 
(b) Section 603 of the Defense Production Act of 1950 is amended 
to read as follows: 
"SEC. 603. Any person who willfully violates any provision of section 
601, 602, or 605 or any regulation or order issued thereunder, upon 
conviction thereof, shall be fined not more than $5,000 or imprisoned 
not more than one year, or both." 
(c) Section 605 of the Defense Production Act of 1950 is amended 
^ Credit preference o
f by adding at the end thereof the following sentences: "Subject to the 
;terans. 
provision of this section with respect to preserving the relative credit 
preferences accorded to veterans under existing law, the President 
may require lenders or borrowers and their successors and assigns to 
comply with reasonable conditions and requirements, in addition to 
those provided by other laws, in connection with any loan of a type 
which has been the subject of action by the President under this section. 
Such conditions and requirements may vary for classifications of per-
sons or transactions as the President may prescribe, and failure to 
comply therewith shall constitute a violation of this section." 
50 U. S. C. 
I 2133. 
app. 
Penalty. 
60 U. S. C. app. 
§§2131,2132,2135. 
50 U. S. C. app. 
GENERAL PROVISIONS 
Civilian supply. 
50 U. 
§2151. 
S. C. app. 
50 U. S. C. app. 
§2953. 
Appointment of ofTi-
cers, etc. 
63 Stat. 854. 
5U. 8. C. §l071note. 
State representative. 
SEC. 107. The table of contents of the Defense Production Act of 
1950 is amended by striking out "Authority to requisition" and in-
serting in lieu thereof "Authority to requisition and condemn". 
SEC. 108. Subsection (c) of section 701 of the Defense Production 
Act of 1950 is amended by striking out "and having due regard to the 
needs of new businesses" and inserting in lieu thereof the following: 
"and having due regard to the current competitive position of estab-
lished business: Provided^ That the limitations and restrictions 
imposed on the production of specific items shall not exclude new con-
cerns from a fair and reasonable share of total authorized production". 
SEC. 109. (a) Subsection (a) of section 703 of the Defense Produc-
tion Act of 1950 is amended by striking out the second sentence and 
inserting in lieu thereof the following sentence: "The President is 
authorized to appoint heads and assistant heads of any such new agen-
cies, and other officials therein of comparable status, and to fix their 
compensation, without regard to the Classification Act of 1949, as 
amended, the head of one such agency to be paid at a rate comparable 
to the compensation paid to the heads of executive departments of the 
Government, and other such heads, assistant heads, and officials at 
rates comparable to the compensation paid to the heads and assistant 
heads of independent agencies of the Government." 
(b) Section 703 (b) of the Defense Pi-oduction Act of 1950 is 
amended by adding at the end thereof the following: "There shall be 
65 STAT.] 
PUBLIC LAW 96—JULY 31, 1951 
139 
included among the policy-making officers of each regional office 
administering the authority conferred by title IV of this Act a resident 
of each State served by such office whose governor requests such repi'e-
sentation." 
(c) Section 704 of the Defense Production Act of 1950 is amended 
by adding at the end thereof the following new sentence: "No rule, 
regulation, or order issued under this Act which restricts the use of 
natural gas (either directly, or by restricting the use of facilities for 
the consumption of natural gas, or in any other manner) shall apply 
in any State in which a public regulatory agency has authority to 
restrict the use of natural gas and certifies to the President that it is 
exercising that authority to the extent necessary to accomplish the 
objectives of this Act." 
(d) Subsection (a) of section 705 of the Defense Production Act 
of 1950 is amended by inserting after "take the sworn testimony of," 
the following: "and administer oaths and affirmations to,". 
(e) Subsection (a) of section 706 of the Defense Production Act 
of 1950 is amended by striking out the last eight words thereof and 
inserting in lieu thereof the following: "or other order, with or with-
out such injunction or restraining order, shall be granted without 
bond". 
(f) Section 710 of the Defense Production Act of 1950 is amended 
by adding at the end thereof the following new subsection: 
"(f) The President, when he deems such action necessary, may 
make provision for the printing and distribution of reports, in such 
number and in such manner as he deems appropriate, concerning the 
actions taken to carry out the objectives of this Act." 
SEC. 110. (a) Title VII of the Defense Production Act of 1950 is 
amended by adding after section 713 the following new section : 
"SEC. 714. (a) (1) It is the sense of the Congress that small-business 
concerns be encouraged to make the greatest possible contribution 
toward achieving the objectives of this Act. In order to carry out this 
policy there is hereby created an agency under the name 'Small Defense 
Plants Administration' (hereinafter referred to as the Administra-
tion) , which Administration shall be under the general direction and 
supervision of the President and shall not be affiliated with or be 
within any other agency or department of the Federal Government. 
The principal office of the Administration shall be located in the Dis-
trict of Columbia, but the Administration may establish such branch 
offices in other places in the United States as may be determined by the 
Administrator of the Administration, For the purposes of this section, 
a small-business concern shall be deemed to be one which is independ-
ently owned and operated and which is not dominant in its field of 
operation. The Administration, in making a detailed definition, may 
use these criteria, among others: independency of ownership and oper-
ation, number of employees, dollar volume of business, and nondomi-
nance in its field. 
"(2) The Administration is authorized to obtain money from the 
Treasury of the United States, for use in the performance of the powers 
and duties granted to or imposed upon it by law, not to exceed a total 
of $50,000,000 outstanding at any one time. For this purpose appro-
priations not to exceed $50,000,000 are hereby authorized to be made 
to a revolving fund in the Treasury. Advances shall be made to the 
Administration from the revolving fund when requested by the 
Administration. This revolving fund shall be used for the purposes 
enumerated subsequently in su&ection (b) (1) (B), (C), and (D). 
Reimbursements made to the Administration under these operations 
shall revert to the revolving fund for use for the same purposes. 
50 U. 8. C. app. 
JI2101-2U0. 
50 U. S. C. app. 
5 2154. 
Rules and regu-
lations. 
50 U. S. C. app. 
§ 2155. 
50 U. S. C. app. 
§ 21.56. 
50 U. S. C. api) 
21W. 
Printing of reports, 
etc. 
app. 
50 U. S. C. 
I 2163. 
S m a l l 
D e f e n s e 
Plants Administra-
tion, creation. 
Appropriation au-
thorized. 
140 
PUBLIC LAW 96—JULY 31, 1951 
[65 STAT. 
Termination, etc. 
Custodians for Ad-
ministration. 
Administrator. 
"(3) The management of the Administration shall be vested in an 
Administrator who shall be appointed by the President, by and with 
the advice and consent of the Senate, and who shall be a person of 
outstanding qualifications known to be familiar and sympathetic with 
small-business needs and problems. The Administrator shall receive 
compensation at the rate of $17,500 per annum. The Administrator 
shall not engage in any other business, vocation, or employment than 
^DeputyAdministra- that of Serving as Administrator. 
The Administrator is authorized 
to appoint two Deputy Administrators to assist in the execution of 
the functions vested in the Administration. Deputy Administrators 
shall be paid at the rate of $15,000 per annum. 
" (4) The Administration shall not have succession, beyond June 30, 
1952, except for purposes of liquidation, unless its life is extended 
beyond such date pursuant to an Act of Congress. It shall have power 
to adopt, alter, and use a seal, which shall be judicially noticed; to 
select and employ such officers, employees, attorneys, and agents as 
shall be necessary for the transaction of business of the Administra-
tion ; to define their authority and duties, require bonds of them, and 
fix the penalties thereof. 
The Administration, with the consent of any 
board, commission, independent establishment, or executive depart-
ment of the Government, may avail itself of the use of information, 
services, facilities, including any field service thereof, officers, and 
employees thereof in carrying out the provisions of this section. 
(5) All moneys of the Administration not otherwise employed may 
be deposited with the Treasurer of the United States subject to check 
by authority of the Administration or in any Federal Reserve bank. 
The Federal Reserve banks are authorized and directed to act as 
depositaries, custodians, and fiscal agents for the Administration in the 
general performance of its powers conferred by this Act. 
All insured 
banks, when designated by the Secretary of the Treasury, shall act as 
custodians, and financial agents for the Administration. 
"(b) (1) Without regard to any other provision of law except the 
regulations prescribed under section 201 of the First War Powers Act, 
1941, as amended, the Administration is empowered— 
"(A) to recommend to the Reconstruction Finance Corpora-
tion loans or advances, on such terms and conditions and with such 
maturity as the Reconstruction Finance Corporation may deter-
mine on its own discretion, to enable small-business concerns to 
finance plant construction, conversion, or expansion, including the 
acquisition of land; or finance the acquisition of equipment, facili-
ties, machinery, supplies, or materials; or to finance research, 
development, and experimental work on new or improved products 
or processes; or to supply such concerns with capital to be used 
in the manufacture of articles, equipment, supplies, or materials 
for defense or essential civilian purposes; or to establish and 
operate technical laboratories to serve small-business concerns; 
such loans or advances to be made or effected either directly by the 
Reconstruction Finance Corporation or in cooperation with banks 
or other lending institutions through agreements to participate in 
insurance of loans, or by the purchase of participations, or 
otherwise; 
"(B) to enter into contracts with the United States Government 
and any department, agency, or officer thereof having procure-
ment powers obligating the Administration to furnish articles, 
equipment, supplies, or materials to the Government; 
"(C) to arrange for the performance of such contracts by 
letting subcontracts to small-business concerns or others for the 
manufacture, supply, or assembly of such articles, equipment, 
supplies, or materials, or parts thereof, or servicing or processing 
Contracts. 
55 Stat. 839. 
50 IT. S. C. app. 
§611. 
65 STAT.] 
PUBLIC LAW 96—JULY 31, 1951 
141 
in connection therewitli, or such management services as may be 
necessary to enable the Administration to perform such con-
tracts; and 
"(D) to provide technical and managerial aids to small-busi-
ness concerns, by maintaining a clearinghouse for technical infor-
mation, by cooperating with other Government agencies, by dis-
seminating information, and by such other activities as are 
deemed appropriate by the Administration. 
"(2)In any case in which the Administration certifies to any officer 
of the Government having procui-ement powers that the Administra-
tion is com|>etent to perform any specific Government procurement 
contract to be let by any such officers, such officer shall be authorized to 
let such procurement contract to the Administration upon such terms 
and conditions as may be agreed upon between the Administration 
and the procurement officer. 
"(c) (1) Whoever makes any statement knowing it to be false, or 
whoever willfully overvalues any security, for the purpose of obtain-
ing for himself or for any applicant any loan, or extension thereof 
by renewal, deferment of action, or otherwise, or the acceptance, re-
lease, or substitution of security therefor, or for the purpose of 
influencing in any way the action of the Administration, or for the 
pui'pose of obtaining money, property, or anything of value, under 
this section, shall be punished by a fine of not more than $5,000 or by 
imprisonment for not more than two years, or both. 
"^2) Whoever, being connected in any capacity with the Adminis-
tration (A) embezzles, abstracts, purloins, or willfully misapplies any 
moneys, funds, securities, or other things of value, whether belonging 
to it or pledged or otherwise entrusted to it, or (B) with intent to 
defraud the Administration or any other body politic or corporate, 
or any individual, or to deceive any officer, auditor, or examiner of 
the Administration makes any false entry in any book, report, or 
statement of or to the Administration, or, without being duly author-
ized, draws any order or issues, puts forth, or assigns any note, deben-
ture, bond, or other obligation, or draft, bill of exchange, mortgage, 
judgment, or decree thereof, or (C) with intent to defraud partici-
pates, shares, receives directly or indirectly any money, profit, 
property, or benefit through any transaction, loan, commission, con-
tract, or any other act of the Administration, or (D) gives any 
unauthorized information concerning any future action or plan of 
the Administration which might all'ect the value of securities, or, 
having such knowledge, invests or speculates, directly or indirectly, 
in the securities or property of any company or corporation receiving 
loans or other assistance from the Administration shall be punished 
by a fine of not more than $10,000 or by imprisonment for not more 
than five years, or both. 
"(d) (1) It shall be the duty of the Administration and it is hereby 
empowered, to coordinate and to ascertain the means by which the 
productive capacity of small-business concerns can be most effectively 
utilized for national defense and essential civilian production. 
"(2) It shall be the duty of the Administration and it is hereby 
empowered, to consult and cooperate with appropriate governmental 
agencies in the issuance of all orders limiting or expanding produc-
tion by, or in the formulation of policy in granting priorities to, 
business concerns. 
All such governmental agencies are required, 
before issuing such orders or announcing such priority policies, to 
consult with the Administration in order that small-business concerns 
will be most effectively utilized in the production of articles, equip-
ment, supplies and materials for national defense and essential civilian 
purposes. 
Penalties. 
Utilization of small-
business concerns. 
Cooperation with 
g o v e r m e n t a l 
agencies. 
142 
PUBLIC LAW 96—JULY 31, 1951 
[65 STAT. 
Powers. 
" (e) The Administration shall have poAver, and it is hereby directed, 
whenever it determines such action is necessary— 
"(1) to make a complete inventory of all productive facilities 
of small-business concerns Avhich can be used for defense and 
essential civilian production or to arrange for such inventory to be 
made by any other governmental agency which has the facilities. 
In making any such inventory, the appropriate agencies in the 
several States shall be requested to furnish an inventory of the 
P
roductive facilities of small-business concerns in each respective 
tate if such an inventory is available or in prospect ; 
"(2) to consult and cooperate with officers of the Government 
having procurement powers, in order to utilize the potential pro-
ductive capacity of plants operated by small-business concerns; 
"(3) to obtain information as to methods and practices which 
Government prime contractors utilize in letting subcontracts and 
to take action to encourage the letting of subcontracts by prime 
contractors to small-business concerns at prices and on conditions 
and terms w^hich are fair and equitable; 
"(4) to take such action, authorized under this section, as is 
necessary to provide small-business concerns Avith an adequate 
incentive, excluding subsidies, to engage in defense and essential 
civilian production and to facilitate the conversion and equipping 
of plants of small-business concerns for such production; 
(5) to determine within any industry the concerns, firms, 
persons, corporations, partnerships, cooperatives, or other busi-
ness enterprises, which are to be designated 'small-business con-
cerns' for the purpose of effectuating the provisions of this section: 
" (6) to certify to Government procurement officers with respect 
to the competency, as to capacity and credit, of any small-business 
concern or group of such concerns to perform a specific Govern-
ment procurement contract; 
"(7) to obtain from any Federal department, establishment, or 
agency engaged in defense procurement or in the financing of 
defense procurement or production such reports concerning the 
letting of contracts and subcontracts and making of loans to 
business concerns as it may deem pertinent in carrying out its 
functions under this Act; 
"(8) to obtain from suppliers of materials information per-
taining to the method of filling orders and the bases for allocating 
their supply, whenever it appears that any small business is 
unable to obtain materials for defense or essential civilian pro-
duction from its normal sources; 
"(9) to make studies and recommendations to the appropriate 
Federal agencies to insure a fair and equitable share of materials, 
supplies, and equipment to small-business concerns to effectuate 
the defense program or for essential civilian purposes; 
"(10) to consult and cooperate Avith all Government agencies 
for the purpose of insuring that small-business concerns shall 
receive fair and reasonable treatment from said agencies; and 
^' (11) to establish such advisory boards and committees wholly 
representative of small business as may be found necessary to 
achieve the purposes of this section. 
Capacity and credit 
"(f) (1) In any case in which a small-business concern or group 
requrement. 
^^ ^^^^ coucems has been certified by or under the authority of the 
Administration to be a competent Government contractor with respect 
to capacity and credit as to a specific Government procurement con-
tract, the officers of the Government having procurement powers are 
directed to accept such certification as conclusive, and are authorized 
to let such Government procurement contract to such concern or 
65 STAT.] 
PUBLIC LAW 96—JULY 31. 1951 
143 
<^r()up of concerns without requiring- it to meet any other requirement 
witli respect to capacity and credit. 
"(2) The Congress has as its policy that a fair proportion of the 
total purchases and contracts for supplies and services for the Gov-
ernment shall be placed with small-business concerns. 
To effectuate 
such policy, small-business concerns within the meaning of this sec-
tion shall receive any award or contract or any part thereof as to 
which it is determined by the Administration and the contracting 
procurement agencies (A) to be in the interest of mobilizing the 
Nation's full productive capacity, or (B) to be in the interest of the 
national defense program, to make such award or let such contract 
to a small-business concern. 
"(3) Whenever materials or supplies are allocated by law, a fair 
and equitable percentage thereof shall be allocated to small plants 
unable to obtain the necessary materials or supplies from usual sources. 
Such percentage shall be determined by the head of the lawful allo-
cating authority after giving full consideration to the claims presented 
by the Administration. 
"(4) Whenever the President invokes the powers given him in this 
Act to allocate, or approve agreements allocating, any material, to 
an extent which the President finds will result in a significant disloca-
tion of the normal distribution in the civilian market, he shall do so 
in such a manner as to make available, so far as practicable, for 
business and various segments thereof in the normal channel of distri-
bution of such material, a fair share of the available civilian supply 
based, so far as practicable, on the share received by such business 
under normal conditions during a representative period preceding 
June 24,1950: Provided^ That the limitations and restrictions imposed 
on the production of specific items should give due consideration to 
the needs of new concerns. 
"(g) The Administration shall make a report every ninety days of 
operations under this title to the President, the President of the Senate, 
and the Speaker of the House of Representatives. 
Such report shall 
include the names of the business concerns to whom contracts are let, 
and for whom financing is arranged, by the Administration, together 
with the amounts involved, and such report shall include such other 
information, and such connnents and recommendations, with respect 
to the relation of small-business concerns to the defense effort, as the 
Administration may deem appropriate. 
"(h) The Administration is hereby empowered to make studies 
of the effect of price, credit, and other controls imposed under the 
defense program and whenever it finds that these controls discriminate 
against or impose undue hardship upon small business, to make recom-
mendations to the appropriate Federal agency for the adjustment of 
controls to the needs of snuill business. 
"(i) The Reconstruction Finance Corporation is authorized to make 
loans and advances upon the recommendation of the Small Defense 
Plants Administration as provided in (b) (1) (A) of this section not 
to exceed an aggregate of $100,000,000 outstanding at any one time, 
on such terms and conditions and with such maturities as Reconstruc-
tion Finance Corporation may determine. 
"(j) The President may transfer to the Administration any func-
tions, powers, and duties of any department or agency .which relates 
primarily to small-business problems. 
"(k) No loan shall be recommended or equipment, facilities, or 
services furnished by the Administration under this section to any 
business enterprise unless the owners, partners or officers of such 
business enterprise (1) certify to the Administration the names of 
any attorneys, agents, or other persons engaged by or on behalf of such 
Fair share of civilian 
supply. 
Reports. 
Adjustment of con-
trols. 
Loans. 
Transfer of func-
tions, etc. 
Restriction on loans 
76100 O - 52 (PT. I) -12 
144 
PUBLIC LAW 96—JULY 31, 1951 
[65 STAT. 
Charge for Govern-
ment-owned property. 
Appropriation au-
thorized. 
fiO U. S. 
J J 2164-2166. 
C. app. 
Termination date. 
business enterprise for the purpose of expediting applications made 
to the Administration for assistance of any sort, and the fees paid 
or to be paid to any such persons, and (2) execute an agreement bind-
ing any such business enterprise for a period of two years after any 
assistance is rendered by the Administration to such business enter-
prise, to refrain from employing, tendering any office or employment 
to, or retaining for professional services, any person who, on the date 
such assistance or any part thereof was rendered, or within one year 
prior thereto, shall have served as an officer, attorney, agent or 
employee of the Administration occupying a position or engaging 
in activities which the Administration shall have determined involve 
discretion with respect to the granting of assistance under this section. 
"(1) To the fullest extent the Administration deems practicable, 
it shall make a fair charge for the use of Government-owned property 
and make and let contracts on a basis that will result in a recovery 
of the direct costs incurred by the Administration. 
"(m) There are hereby authorized to be appropriated such sums 
as may be necessary and appropriate for the carrying out of the provi-
sions and purposes of this section." 
(b) The presently designated sections 714, 715, and 716 of the 
Defense Production Act of 1950 are redesignated as sections 716, 716, 
and 717, respectively. 
SEC. 111. The presently designated section 716 of the Defense Pro-
duction Act of 1950 is amended by striking out subsections (a) and 
(b), by redesignating subsections (c) and (d) as subsections (b) 
and (c), respectively, and by inserting the following new subsection: 
"(a) This Act and all authority conferred thereunder shall ter-
minate at the close of June 30,1952." 
61 Stat. 193. 
50 U. S. C. app. 
§ 1881 note. 
Ante, p. 110. 
60 U. S. C. app. 
§ 1894 (a). 
50 U. S. C. app. 
5 1896 (e). 
50 U. S. C. app. 
5 1898 (a). 
Powers of the Presi-
dent. 
64 Stat. 807. 
50 U. S. C. app. 
S 2103. 
Office of Housing 
Expediter. 
Transfer of records, 
etc. 
TITLE II—AMENDMENTS TO T H E HOUSING AND KENT 
ACT OF 1947 
SEO. 201. Section 204 (f) of the Housing and Rent Act of 1947, 
as amended, is amended by striking out "July 31, 1951" and inserting 
in lieu thereof "June 30,1952". 
SEO. 202. (a) The Housing and Rent Act of 1947, as amended, 
is amended by striking out "Housing Expediter" wherever it appears 
therein and inserting in lieu thereof "President". 
(b) Section 204 (a) of the Housing and Rent Act of 1947, as 
amended, is repealed. 
(c) Section 206 (e) of the Housing and Rent Act of 1947, as 
amended, is amended by striking out "The principal office of the Hous-
ing Expediter shall be in the District of Columbia, but he or any 
duly authorized representative may exercise any or all of his powers 
in any place and attorneys" and inserting in lieu thereof "Attorneys". 
(d) Section 208 (a) of the Housing and Rent Act of 1947, as 
amended, is amended to read as follows: 
"(a) The President shall administer the powers, duties, and func-
tions conferred upon him by title I I of this Act through the new 
independent agency created pursuant to section 403 of the Defense 
Production Act of 1950; and he shall administer the powers, duties, and 
functions conferred upon him by title I of this Act through such offi-
cer or agency of the Government as he may designate. In accordance 
with the action taken by him pursuant to the preceding sentence, the 
President shall provide for appropriate transfers of records, prop-
erty, necessary personnel, and unexpended balances of appropriations, 
allocations, and other funds heretofore under the jurisdiction of, or 
available to, the Office of the Housing Expediter. Any employees of 
the Office of the Housing Expediter not so transferred shall, unless 
65 STAT.] 
PUBLIC LAW 96—JULY 31, 1951 
145 
transferred to other positions in the Government, be separated from 
thQ service. 
The President shall make such provisions as he shall 
deem appropriate for the termination and liquidation of the affairs 
of the Office of the Housing^ Expediter. For the purposes of deter-
mining the status of employees transferred to an agency administering 
functions provided for in this Act, they shall be deemed to be trans-
ferred in connection with a transfer of functions." 
SEC. 203. Section 204 of the Housing and Rent Act of 1947, as 
amended, is amended by adding at the end thereof the following: 
"(k) The President shall by i-egulation or order establish such 
maximum rent or maximum rents as in his judgment will be fair and 
equitable for controlled housing accommodations (as defined in section 
202 (c)) (1) in any State which by law declares that there exists such 
a shortage in rental housing accommodations as to require Federal 
rent control in such State, or (2) in any incorporated city, town, 
village, or in the unincorporated area of any county (other than a 
city, town, village, or unincorporated area of any county within a 
State which is controlling rents) upon receipt of a resolution of its 
governing body adopted for that purpose in accordance with applicable 
local law and based upon a finding by such governing body, reached as 
a result of a public hearing held after ten days' notice, that there exists 
such a shortage in rental housing accommodations as to require Federal 
rent control in such city, town, village, or unincorporated area in such 
county. 
In establishing any maximum rent for any housing accom-
modations under this subsection the President shall give due consid-
eration to the rents prevailing for such housing accommodations or 
comparable housing accommodations during the period from May 
24, 1950, to June 24, 1950, and he shall make adjustment for such 
relevant factors as he shall deem to be of general applicability in 
respect to such accommodations, including increases or decreases in 
property taxes and other costs within such State, incorporated city, 
town, or village, or unincorporated area. 
" (1) Whenever the Secretary of Defense and the Director of Defense 
Mobilization, acting jointly, shall determine and certify to the Presi-
dent that any area (whether then or ever controlled or decontrolled 
under this Act) is a critical defense housing area, the President shall 
by regulation or order establish such maximum rent or maximum rents 
for any housing accommodations, not then subject to rent control, in 
such area or portion thereof as in his judgment will be fair and equi-
table. 
Notwithstanding the provisions of section 202 (c) the term 
'controlled housing accommodations' as applied to any such critical 
defense housing area shall include all housing accommodations in the 
area, without exception. In establishing any maximum rent for any 
housing accommodations under this subsection, the President shall give 
due consideration to the rents prevailing for such housing accommoda-
tions or comparable housing accommodations during the period from 
May 24, 1950, to June 24, 1950, and he shall make adjustment for 
such relevant factors as he shall determine and deem to be of general 
applicability in respect to such accommodations, including increases or 
decreases in property taxes and other costs within such area. Maxi-
mum rents in any critical defense housing area shall be terminated at 
such time as the Secretary of Defense and the Director of Defense 
Mobilization, acting jointly, shall determine and certify to the Presi-
dent that such area is no longer a critical defense housing area, or as 
provided in subsection (e) or (j) of this section: Provided^ however^ 
That in any area where maximum rents are removed under the pro-
cedures provided in subsection (e) or (j) of this section, maximum 
rents may be reestablished after the expiration of thirty days on the 
determination and certification of the Secretary of Defense and the 
Termination. 
50 U. 
§1894. 
S. C. app. 
Maximum rents. 
Controlled / housing 
accommodations. 
50 U. 
§ 1892. 
S. C. app 
C r i t i c a l defense 
housing area. 
50 U. 
1892. 
S. C. app. 
146 
PUBLIC LAW 96—JULY 31, 1951 
[65 STAT. 
Conditions. 
Real-estate con-
struction. 
Credit controls. 
60 U. S. C. app. 
§§ 2131-2136. 
State and local rent 
control. 
Rent increase. 
Director of Defense Mobilization, acting jointly. 
No area shall be 
certified as a critical defense housing area under the authority granted 
in this subsection unless all the following conditions exist in such 
area: 
"(1) a new defense plant or installation has been or is to be pro-
vided, or an existing defense plant or installation has been or is to 
be reactivated or its operation substantially expanded; 
"(2) substantial in-migration of defense workers or military per-
sonnel is required to carry out activities at such plant or installation; 
and 
"(3) a substantial shortage of housing required for such defense 
workers or militaiy personnel exists or impends which has resulted 
or threatens to result in excessive rent increases and which impedes 
or threatens to impede activities of such defense plant or installation. 
"(m) Whenever an area has been certified under subsection (1) 
to be a critical defense housing area, real-estate construction credit 
controls imposed under title VI of the Defense Production Act of 1950 
shall be relaxed to the extent necessary to encourage construction of 
housing for defense workers and military personnel: Provided^ That 
the certification, pursuant to subsection (1), that an area is a critical 
defense housing area shall not be effective in such area for any of 
the purposes of this section until such real-estate construction credit 
controls have been relaxed as provided in this subsection to the extent 
necessary in the determination of the President. The fact that any 
area has been certified as a critical defense housing area under sub-
section (1) shall not make such area ineligible for the location of 
additional defense plants, facilities, or installations, or as a source 
of additional military procurement of any sort. 
"(n) No maximum rents shall be established under subsection (1) 
for housing accommodations in any State where rent control is in 
effect or in any locality where local rent control is in effect, unless 
the rent component of the Consumers' Index of the Bureau of Labor 
Statistics for such State or locality has increased more than the 
United States average of the rent component of such index during 
the last six months for which such index is available immediately 
preceding the establishment of such maximum rents. 
The rent com-
ponent of the Consumers' Index of the Bureau of Labor Statistics 
for any State shall be the average, weighted by population as deter-
mined by the Bureau of Labor Statistics, for all reported cities in the 
State, except that, where only one city is reported, the rent com-
ponent for the State shall be the rent component for that city. 
Upon 
the establishment of maximum rents pursuant to subsection (1) for 
housing accommodations in a State in which State rent control is in 
effect. State rent control shall thereupon terminate. 
Upon the estab-
lishment of maximum rents pursuant to subsection (1) for housing 
accommodations in a locality in which local rent control is in effect, 
local rent control shall thereupon terminate. 
The rent component 
for any locality subject to local rent control shall be the rent com-
ponent as established by the Bureau of Labor Statistics for that 
locality. 
Where data concerning rents have not been heretofore 
collected for a city in a State having State rent control or for a par-
ticular locality which has local rent control, the President may cause 
a survey to be made by the Bureau of I^abor Statistics for the purpose 
of establishing a rent component for that State or locality. 
For the 
purposes of this subsection, State rent control shall be deemed in 
effect in any State in which maximum rents are controlled pursuant 
to State law throughout the State, regardless of whether maximum 
rents are actually in effect in every locality of the State. 
"(o) In order to compensate for increases which have occurred 
in costs and prices, the maximum rent in effect on the date of enact-
65 STAT.1 
PUBLIC LAW 96—JULY 31. 1951 
147 
ment of this subsection for any housing accommodation shall, upon 
sworn application, be increased to 120 per centum of the following: 
The maximum rent for the housing accommodation in effect on 
June 30,1947 (or if no maximum rent was then in effect for the hous-
ing accommodation, the maximum rent then in effect for comparable 
housing accommodations), plus the amount of any increase allowed 
or allowable under this Act for major capital improvements or for 
increases in living space, services, furniture, furnishings, or equipment, 
and minus any decrease required or requirable under this Act for 
decreases in living space, services, furniture, furnishings, or equip-
ment, or for substantial deterioration or failure to perform ordinary 
repair, replacement, or maintenance. 
Any increase in a maximum 
rent applied for under this subsection which is based upon the maxi-
mum rent in effect on June 30,1947, for the particular housing accom-
modation and upon increases and decreases actually allowed under 
this Act shall be effective upon the filing of the application. Nothing 
in this subsection shall require the reduction of any maximum rent, 
nor prevent such additional adjustment for increases in costs and 
prices as the President may deem appropriate." 
SEC. 204. Section 205 of the Housing and Rent Act of 1947, as 
amended^ is amended to read as follows: 
"SEC. 205. (a) Any person who demands, accepts, receives, or retains 
any payment of rent in excess of the maximum rent prescribed under 
the provisions of this Act, or any regulation, order, or requirement 
thereunder, shall be liable to the person from whom such payment is 
demanded, accepted, received, or retained (or shall be liable to the 
United States as hereinafter provided) for reasonable attorney's fees 
and costs as determined by the court, plus liquidated damages in the 
amounts of (1) $50, or (2) not more than three times the amount by 
which the payment or payments demanded, accepted, received, or 
retained exceed the maximum rent which could lawfully be demanded, 
accepted, received, or retained, as the court in its discretion may 
determine, whichever in either case may be the greater amount: Pro-
vided^ That the amount of such liquidated damages shall be the amount 
of the overcharge or overcharges if the defendant proves that the vio-
lation was neither willful nor the result of failure to take practicable 
precautions against the occurrence of the violation. 
"(b) Any person who unlawfully evicts a tenant shall be liable to 
the person so evicted (or shall be liable to the United States as here-
inafter provided) for reasonable attorney's fees and costs as deter-
mined by the court, plus liquidated damages in the amounts of (1) 
one month's rent or $50, whichever is greater, or (2) not more than 
three times such monthly rent, or $150, whichever is greater: Provided^ 
That the amount of such liquidated damages shall be the amount of one 
month's rent or $50, whichever is greater, if the defendant proves that 
the violation was neither willful nor the result of failure to take 
practicable precautions against the occurrence of the violation. 
"(c) Suit to recover liquidated damages as provided in this section 
may be brought in any Federal court of competent jurisdiction regard-
less of the amount involved, or in any State or Territorial court of 
competent jurisdiction, within one year after the date of violation: 
Provided^ That if the person from whom such payment is demanded, 
accepted, received, or retained, or the person wrongfully evicted, 
either fails to institute an action under this section within thirty days 
from the date of the occurrence of the violation or is not entitled for 
any reason to bring the action, the United States may settle the claim 
arising out of the violation or within one year after the date of viola-
tion may institute such action. 
If such claim is settled or such action 
is instituted, the person from whom such payment is demanded, 
accepted, received, or retained, or the person wrongfully evicted, 
60 U. S. C. app. 
§ 1895. 
Liability for viola-
tions. 
Unlawful eviction. 
Suits. 
Settlement. 
148 
PUBLIC LAW 96—JULY 31, 1961 
[65 STAT. 
Determination 
amount. 
of 
Judgment. 
50 U. S. C. app. 
$1896. 
Violations. 
50 U. S. C. 
§ 1892. 
"Person." 
app. 
Repeals. 
50 U. 
§1894. 
50 U. 
S 1892. 
S. C. app. 
S. C. app. 
shall thereafter be barred from bringing an action for the same viola-
tion or violations. For the purpose of determining the amount of 
liquidated damages to be awarded to the plaintiff in an action brought 
under subsection (a) of this section, all violations alleged in an action 
under said subsection (a) which were committed by the defendant 
with respect to the plaintiff prior to the bringing of such an action 
shall be deemed to constitute one violation and, in such action under 
subsection (a) of this section, the amount demanded, accepted, received, 
or retained in connection with such one violation shall be deemed to 
be the aggregate amount demanded, accepted, received, or retained in 
connection with all such violations. A judgment for damages or on 
the merits in any action under either subsection (a) or (b) of this 
section shall be a bar to any recovery under the same subsection of 
this section in any other action against the same defendant on account 
of any violation with respect to the same person prior to the institution 
of the action in which such judgment was rendered." 
SEC. 205. Section 206 (a) of the Housing and Rent Act of 1947, as 
amended, is amended to read as follows: 
"(a) (1) It shall be unlawful for any person to demand, accept, 
receive, or retain any rent for the use or occupancy of any controlled 
housing accommodations in excess of the maximum rent prescribed 
under this Act, or otherwise to do or omit to do any act, in violation 
of this Act, or of any regulation or order or requirement under this 
Act, or to offer, solicit, attempt, or agree to do any of the foregoing. 
"(2) It shall be unlawful for any person to evict, remove, or exclude, 
or cause to be evicted, removed, or excluded, any tenant from any 
controlled housing accommodations in any manner or upon any 
grounds except as authorized or permitted by the provisions of this Act 
or any regulation, order, or requirement thereunder, and any person 
who lawfully gains possession from a tenant of any controlled housing 
accommodations, and thereafter fails fully to comply with such re-
quirements or conditions as may have been imposed for such possession 
by the provisions of this Act or any regulation, order, or requirement 
thereunder, shall also be deemed to have unlawfully evicted such ten-
ant and shall be liable to such tenant, or to the United States, as pro-
vided in this Act." 
SEC. 206. Section 202 (a) of the Housing and Rent Act of 1947, as 
amended, is amended to read as follows: 
" (a) The term 'person' includes an individual, corporation, partner-
ship, association, or any other organized group of persons, or legal 
successor or representative of the foregoing, and includes the United 
States or any agency thereof, or any other government, or any of its 
political subdivisions, or any agency of any of the foregoing: Pro-
vided^ That no punishment provided by this Act shall apply to the 
United States, or to any such government, political subdivision, or 
government agency." 
SEC. 207. (a) The first sentence of section 202 (c) (1) (A) of the 
Housing and Rent Act of 1947, as amended, is amended by striking out 
the following: "which is located in a city of less than two million five 
hundred thousand population according to the 1940 decennial census 
and". 
(b) Section 202 (c) (1) (B) of the Housing and Rent Act of 1947, 
as amended, is repealed. 
(c) The proviso in section 204 (h) of the Housing and Rent Act 
of 1947, as amended, is repealed. 
SEC. 208. Section 202 (d) of the Housing and Rent Act of 1947, 
as amended, is amended by inserting after "204 (i) (1) or (2)" the 
following: ", 204 (k), or 204 (1)". 
65 STAT.] 
PUBLIC LAW 97—JULY 31, 1951 
149 
SEC. 209. The first sentence of section 204 (b) (1) of the Housing 
and Rent Act of 1947, as amended, is amended by striking out "(h) 
and (i)" and inserting in lieu thereof "(h), (i), (k), (1), and (o)". 
SEC. 210. Nothing in this Act or in the Housing and Rent Act of 
1947, as amended, shall be construed to require any person to offer any 
housing accommodations for rent. 
SEC. 211. (a) The last sentence of section 4 (c) of the Housing and 
Rent Act of 1947, as amended, is amended by inserting after the word 
"section" the following: "for persons engaged in national defense 
activities and". 
(b) Section 4 (e) of the Housing and Rent Act of 1947, as amended, 
is amended by striking out "July 31,1951" and inserting in lieu thereof 
"June 30, 1952". 
(c) Section 4 of such Act is amended by adding at the end thereof 
the lollowing new subsection: 
"(f) For the purposes of this section, any parent of a member of 
the armed forces of the United States who lost his life in the armed 
services of the United States since September 16, 1940, shall be con-
sidered to be a member of the family of a veteran of World War II." 
SEC. 212. Section 215 of the Independent Offices Appropriation Act, 
1946 (59 Stat. 134), and section 213 of the Independent Offices Appro-
priation Act, 1947 (60 Stat. 81), are hereby repealed. 
Approved July 31, 1951, 7:00 p. m., E.D.T. 
50 U. 
1894. 
S. C. app. 
50 U. 
1884. 
S. C. app 
Parent of certain de-
ceased veterans. 
Public Law 97 
JOINT RESOLUTION 
CHAPTER 276 
Amending an Act making temporary appropriations for the fiscal year 1952, 
and for other purposes. 
July 31,1951 
[H. J. Res. 302] 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assenibled^ That clause (c) of section 4 
of the joint resolution of July 1, 1951 (Public Law 70), is hereby 
amended by striking out "July 31, 1951" and inserting in lieu thereof 
"August 31, 1951". 
SEC. 2. The amounts appropriated by subsection (e) of section 1 of 
such joint resolution for International Development and Economic 
Cooperation are hereby increased by such amounts as may be neces-
sary to permit such activities to continue under such joint resolution 
at monthly rates not in excess of those permitted by the amounts appro-
priated therefor for the month of July 1951. 
SEC. 3. Subsection (e) of section 1 of such joint resolution is amended 
by inserting, following "Institute of Inter-American Affairs;" the fol-
lowing: "Aid to Palestine Refugees (not to exceed $2,000,000) ;". 
SEC. 4. Section 3 of such joint resolution is amended by inserting 
before the period at the end thereof the following: 
": Provided^ That appropriations and funds made available and 
authority granted pursuant to any other act making appropriations 
for the fiscal year 1952 shall remain subject to the provisions of this 
section until enactment into law of the Supplemental Appropriation 
Act, 1952". 
Approved July 31, 1951. 
Temporary appro-
priations, 1952. 
Ante, p. 114. 
Ante, p. 113. 
Ante, p. 113.