St. Lawrence Seaway

The Chair wishes to make an announcement. There have been eight bills introduced by various Members of the House in respect to the seaway. A record will be made and they will be shown. Last Thursday, on June 4, the committee unanimously voted to confine its interest on just one bill. That was House Joint Resolution 104, introduced by myself. I suppose the reason for it is because the same bill has been introduced in the Senate and hearings have been held somewhat on that bill over there.

Both the bills provide for self-liquidation of the project.

The Chair makes that statement so that the witnesses both for and against this project can confine themselves to that one bill. That is the wish of the committee.

These bills on the St. Lawrence seaway have been referred to the Committee on Public Works-House Joint Resolution 2 introduced by Mr. Kilburn, of New York; House Joint Resolution 3 and House Joint Resolution 4 introduced by Mr. Dingell, of Michigan; House Joint Resolution 98 introduced by Mr. Machrowicz, of Michigan; House Joint Resolution 104 introduced by Mr. Dondero, of Michigan; House Joint Resolution 195 introduced by Mr. Roosevelt, of New York; H. R. 3319 introduced by Mr. Zablocki, of Wisconsin, and H. R. 3799 introduced by Mr. Thompson, of Texas.

If there is no objection, House Joint Resolution 104 will be inserted in the record at this point.

(H. J. Res. 104 is as follows:)

[H. J. Res. 104, 83d Cong., 1st sess.]

JOINT RESOLUTION Providing for creation of the Saint Lawrence Seaway Development Corporation to construct part of the Saint Lawrence Seaway in United States territory in the interest of national security; authorizing the Corporation to consummate certain arrangements with the Saint Lawrence Seaway Authority of Canada relative to construction and operation of the seaway; empowering the Corporation to finance the United States share of the seaway cost on a self-liquidating basis; and for other purposes Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

CREATION OF CORPORATION

SECTION 1. There is hereby created a body corporate to be known as the Saint Lawrence Seaway Development Corporation (hereinafter referred to as the “Corporation"). The Corporation shall be an instrumentality of the United States and shall have the powers and duties hereinafter set forth.

BOARD OF DIRECTORS

SEC. 2. (a) The management of the Corporation shall be vested in a Board of Directors consisting of three members to be appointed by the President by and with the advice and consent of the Senate. Not more than two members of the Board shall be members of the same political party. One of the members shall be designated by the President as Chairman at the time of appointment. (b) The terms of office of members of the Board shall be six years except that (1) the terms of office of the members first appointed shall run from the date of enactment of this joint resolution and shall expire one at the end of two years, one at the end of four years, and one at the end of six years, as designated by the President at the time of appointment, and (2) a member appointed to fill a vacancy caused by the death, resignation, or removal of a member prior to the expiration of the term for which he shall have been appointed, shall be appointed only for the remainder of such term.

(c) Each member of the Board shall be paid compensation at the rate of $17,500 per annum. Members of the Board shall devote full time to the business

of the Corporation.

(d) Two members shall constitute a quorum for transaction of the business of the Board, and vacancies in the Board, so long as there are two members in office, shall not impair the powers of the Board to execute the functions of the Corporation.

FUNCTIONS OF CORPORATION

SEC. 3. The Corporation is authorized and directed to construct in United States territory, deep-water navigation works in accordance with the Controlled Single Stage project, 238-242 (with depth of twenty-seven feet in channels and canals and locks at least eight hundred feet long, eighty feet wide and thirty feet over the sills), designated as "works solely for navigation" in the joint report dated January 3, 1941, of the Canadian Temporary Great Lakes-Saint Lawrence Basin Committee and the United States Saint Lawrence Advisory Committee, in the International Section of the Saint Lawrence River between Lake Ontario and the head of Lake Saint Francis; and to operate and maintain such works in coordination with the Saint Lawrence Seaway Authority of Canada, created by chapter 24 of the acts of the fifth session of the Twenty-first Parliament of Canada 15-16, George VI, 1951: Provided, That the Corporation shall not proceed with the aforesaid construction unless and until:

(a) The Saint Lawrence Seaway Authority of Canada provides assurances satisfactory to the Corporation that it will complete the Canadian portions of the navigation works authorized by section 10, chapter 24 of the acts of the fifth session of the Twenty-first Parliament of Canada 15-16, George VI, 1951, as nearly as possible concurrently with the completion of the works authorized by this section.

(b) The Corporation has received assurances satisfactory to it that the State of New York, or an entity duly designated by it, or other licensee of the Federal Power Commission, in conjunction with an appropriate agency in Canada, will construct and complete, as nearly as possible concurrently with the navigation works herein authorized, the dams and power works approved by the International Joint Commission in its order of October 29, 1952 (docket 68).

CORPORATE POWERS

SEC. 4. (a) For the purpose of carrying out its functions under this joint resolution the Corporation—

(1) shall have succession in its corporate name;

(2) may adopt and use a corporate seal, which shall be judicially noted; (3) may sue and be sued in its corporate name;

(4) may adopt, amend, and repeal bylaws, rules, and regulations governing the manner in which its business may be conducted and the powers vested in it may be exercised;

(5) may make and carry out such contracts or agreements as are necessary or advisable in the conduct of its business;

(6) shall be held to be an inhabitant and resident of the northern judicial district of New York within the meaning of the laws of the United States relating to venue of civil suits;

(7) may appoint and fix the compensation of such officers and employees as may be necessary for the conduct of its business, define their authority

and duties, delegate to them such of the powers vested in the Corporation as the Board may determine, require bonds of such of them as the Board may designate, and fix the penalties and pay the premiums on such bonds; and

(8) may acquire, by purchase, lease, condemnation, or donation such real and personal property and any interest therein, and may sell, lease, or otherwise dispose of such real and personal property, as the Board deems necessary for the conduct of its business.

CAPITAL STOCK

SEC. 5. The Corporation shall have a capital stock of $2,000,000 which shall be subscribed by the United States. There is hereby authorized to be appropriated to the Secretary of the Treasury the sum of $2,000,000 for the purpose of enabling the Secretary of the Treasury to make payment for such capital stock when payment is called by the Board. Receipts for payment by the United States for or on account of such capital stock shall be issued by the Corporation to the Secretary of the Treasury and shall be evidence of stock ownership by the United States.

OBLIGATIONS OF CORPORATION

SEC. 6. (a) In order to finance its activities, the Corporation is authorized and empowered to issue, and to have outstanding at any one time in an amount not exceeding $100,000,000, its notes, debentures, bonds, or other obligations or commitments. Such obligations shall mature not more than fifty years from the dates of their issue, shall be redeemable at the option of the Corporation before maturity in such manner as may be stipulated in such obligations, shall bear interest at such rate or rates and shall be subject to such other terms and conditions, as may be determined by the Corporation after consultation with the Secretary of the Treasury. Obligations of the Corporation shall not be purchased by the United States or any agency or instrumentality thereof.

(b) All such obligations shall be fully and unconditionally guaranteed both as to interest and principal by the United States and such guaranty shall be expressed on the face thereof. In the event that the Corporation shall be unable to pay the principal of or interest on any such obligations when due, the Secretary of the Treasury shall pay the amount thereof, which is hereby authorized to be appropriated, and thereupon to the extent of the amounts so paid, the Secretary of the Treasury shall succeed to the rights of the holders of such obligations.

(c) The Secretary of the Treasury is authorized and directed to prepare suitable forms for the notes, debentures, bonds, or other obligations, and otherwise to make the facilities and services of the Department of the Treasury available to the Corporation in the issuance and sale of such obligations. The Corporation shall reimburse the Secretary of the Treasury for any expenses incurred by the Department of the Treasury under this subsection.

DEPOSIT AND EXPENDITURE OF CORPORATE FUNDS

SEC. 7. (a) All moneys of the Corporation not otherwise employed may be deposited with the Treasurer of the United States subject to check by authority of the Corporation or in any Federal Reserve bank, or may, by authorization of the Board, be used in the purchase for redemption and retirement of any notes, debentures, bonds, or other obligations issued by the Corporation, and the Corporation may reimburse such Federal Reserve bank for its services in such manner as may be agreed upon. The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for the Corporation in the general performance of its powers.

(b) All expenses incurred by the Corporation in carrying out its functions, including administrative expenses, shall be paid from funds obtained from the sale of its obligations under section 6 or from revenues derived from its corporate activities, except that until such time as funds from such sources are available, amounts paid by the Secretary of the Treasury under section 5 may be used for such purposes.

(c) Sections 105 and 106 of the Government Corporation Control Act, requiring annual audits by the General Accounting Office and reports thereof to the Congress, shall be applicable to the Corporation.

EXEMPTION FROM TAXATION

SEC. 8. The Corporation, its property, franchises, and income are hereby expressely exempted from taxation in any manner or form by the Federal Government or by any State, county, municipality, or any subdivision or district thereof.

SERVICES AND FACILITIES OF OTHER AGENCIES

SEC. 9. The Corporation may, with the consent of the agency concerned, accept and utilize, on a reimbursable basis, the officers, employees, services, facilities, and information of any agency of the Federal Government, except that any such agency having custody of any engineering or other data relating to any of the matters within the jurisdiction of the Corporation shall, upon request of the Board, make such data available to the Corporation without reimbursement.

MISAPPROPRIATION OF funds

SEC. 10. (a) All general penal statutes relating to the larceny, embezzlement, conversion, or to the improper handling, retention, use, or disposal of public moneys or property of the United States shall apply to the moneys and property of the Corporation and to moneys and properties of the United States entrusted to the Corporation.

(b) Any person who, with intent to defraud the Corporation, or to deceive any director, officer, or employee of the Corporation or any officer or employee of the Corporation or any officer or employee of the United States, (1) makes any false entry in any book of the Corporation, or (2) makes any false report or statement for the Corporation, shall, upon conviction thereof, be fined not more than $10,000 or imprisoned not more than five years, or both.

(c) Any person who shall receive any compensation, rebate, or reward, or shall enter into any conspiracy, collusion, or agreement, express or implied, with intent to defraud the Corporation or wrongfully and unlawfully to defeat its purposes, shall, on conviction thereof, be fined not more than $5,000 or imprisoned not more than five years, or both.

REPORTS TO CONGRESS

SEC. 11. The Corporation shall transmit to the Congress at the beginning of each regular session an anual report of its operations under this joint resolution.

SEPARABILITY OF PROVISIONS

SEC. 12. If any provision of this joint resolution or the application of such provision to any person or circumstances shall be held invalid, the remainder of the joint resolution and the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

RATES OF CHARGES OR TOLLS

SEC. 13. (a) The Corporation is further authorized and directed to negotiate, under the supervision of the President, with the Saint Lawrence Seaway Authority of Canada, or such other branch or agent of the Government of Canada as may be appropriate under the circumstances, an agreement or agreements as to the rates of charges or tolls to be levied on cargoes and passenger traffic using the Saint Lawrence Seaway; but in the event that such negotiations should not result in agreement, the Corporation is authorized and directed to establish unilaterally such rates of charges or tolls for the use of the works under its administration.

(b) In the course of its negotiations, or in the establishment, unilaterally, of the rates of charges or tolls as provided in subsection (a), the Corporation shall be guided by the following principles:

(1) That the toll charges shall be fair and equitable and shall give due consideration to encouragement of increased utilization of the navigation facilities, and to the special character of bulk agricultural, mineral, and other raw materials.

(2) That tolls shall vary for ships in ballast and according to the character of cargo with the view that each classification of cargo will so far as practicable derive relative benefits from the use of these facilities.

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St. Lawrence Seaway: Hearings Before the Committee on Public Works, House of ...