A draft of this legislation has been submitted to the Bureau of the Budget. Under date of December 6, 1929, the Director of the Bureau of the Budget informed the Navy Department that so far as the financial program of the President was concerned there was no objection to the submission of the proposed legislation for the consideration of the Congress.

The enactment of the legislation in the form submitted is therefore recommended.

Very respectfully,

J. F. ADAMS, Secretary of the Navy.

NAVY DEPARTMENT,

The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS,

Washington, June 20, 1930. House of Representatives, Washington, D. C.

MY DEAR MR. CHAIRMAN: At the hearing held on the bill (H. R. 7934) for the conservation, care, custody, protection, and operation of the naval petroleum and oil-shale reserves, and for other purposes, on Thursday, June 19, 1930, before the Committee on Naval Affairs, it was requested that the Navy Department inform the committee as to whether or not, if it appeared advisable to acquire lands within naval petroleum reserve No. 1 by condemnation, such condemnation proceedings would be authorized by the general law for condemnation of lands for public uses. (Act of August 1, 1888; 25 Stat. 357; U. S. C., title 40, sec. 257.)

This law reads as follows:

"Condemnation of sites; jurisdiction.—In every case in which the Secretary of the Treasury or any other officer of the Government has been or shall be authorized to procure real estate for the erection of a public building or for other public uses he shall be authorized to acquire the same for the United States by condemnation, under judicial process, whenever in his opinion it is necessary or advantageous to the Government to do so. And the United States district courts of the district wherein such real estate is located, shall have jurisdiction of proceedings for such condemnation, and it shall be the duty of the Attorney General of the United States, upon every application of the Secretary of the Treasury, under this section and section 258 of this title, or such other officer, to cause proceedings to be commenced for condemnation, within 30 days from the receipt of the application at the Department of Justice."

The bill H. R. 7934 provides for the acquisition by the Navy Department of privately-owned lands in reserve No. 1 by a particular method, i. e., by exchange for Government land in reserve No. 1, or the right to royalty production from any of the naval petroleum reserves. It appears doubtful, therefore, if acquisition by any other means such as condemnation would be possible unless specifically provided for. Should the committee desire to provide for the possible contingency of condemning the lands, it is believed that an additional proviso on page 3, line 8, and on page 5, line 7, as follows, would cover the situation:

"Provided further, That should it be impossible to make exchanges of land or agreements for the conservation of naval petroleum with the private owners of land or leases within naval petroleum reserve number one, as provided for in this act, the Secretary of the Navy, with the approval of the President, is authorized to acquire such privately owned lands or leases in naval petroleum reserve number one by purchase or condemnation."

There is attached hereto a memorandum of certain changes which are believed desirable in the bill H. R. 7934.

Sincerely yours,

ERNEST LEE JAHNCKE,
Acting Secretary of the Navy.

MEMORANDUM-RE SUGGESTED CHANGES IN THE BILL H. R. 7934

Page 2, line 14, and page 4, line 13, after the word "President," delete the suggested committee amendment reading, "nor until test wells have been completed," and substitute therefor the words, "and no agreement covering any exchange of land or the right to royalty production for undrilled land shall be made until after suitable test wells have been drilled."

This change is felt necessary, as by the committee amendment it might be construed that the Government would have to drill test wells before executing

any leases for any part of the naval petroleum reserves. There are no new leases contemplated, but if there should be at any future date the Government policy has been to have the lessee shoulder all expense of development and to pay the Government royalty on the production, if any.

Page 2, line 19, delete the comma after the word "apply," and insert a comma after the word "applicable."

Page 3, line 8, after the word "Navy," insert the words "And provided further, That when satisfactory agreements can be made, with adjoining landowners or leaseholders, regulating oil or gas development, the Secretary of the Navy is hereby directed to do so," to conform with the committee amendment inserted on page 5, line 7.

Page 2, line 4, and page 4, line 3, substitute for the word "or," the words "and/or."

O

2d Session

No. 2049

MONUMENT TO WILLIAM HOWARD TAFT AT MANILA

JULY 1, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. LUCE, from the Committee on the Library, submitted the following

REPORT

[To accompany S. J. Res. 177]

As President of the United States Philippine Commission and then as the first civil Governor of the Philippines when American Government had been instituted, William Howard Taft endeared himself to the inhabitants of the islands. His tact and skill did much in creating good will and restoring order. To erect a statue of him there will greatly gratify the Filipinos and at the same time attest to our purpose to carry on in the Taft spirit, with justice and generosity to all. Accordingly your committee recommends the passage of S. J. Res. 177.

O

SECOND DEFICIENCY APPROPRIATION BILL, 1930

JULY 1, 1930.-Ordered to be printed

Mr. Wood, from the committee of conference, submitted the following

CONFERENCE REPORT

[To accompany H. R. 12902]

The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 12902) making appropriations to supply deficiencies in certain appropriations for the fiscal year ending June 30, 1930, and prior fiscal years, to provide supplemental appropriations for the fiscal years ending June 30, 1930, and June 30, 1931, and for other purposes, having met, after full and free conference have agreed to recommend and do recommend to their respective Houses as follows:

That the Senate recede from its amendments numbered 5, 10, 15, 17, 28, 29, 57, 67, 68, and 69.

That the House recede from its disagreement to the amendments of the Senate numbered 1, 2, 4, 6, 7, 8, 18, 19, 20, 23, 24, 25, 26, 32, 34, 35, 36, 37, 38, 40, 41, 44, 45, 46, 48, 49, 50, 51, 52, 53, 54, 55, 56, 58, 59, 61, 62, 63, 64, 65, 66, 71, 72, 73, 75, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, and 106, and agree to the same.

Amendment numbered 9:

That the House recede from its disagreement to the amendment of the Senate numbered 9, and agree to the same with an amendment as follows:

After the matter inserted by said amendment, insert, or so much thereof as may be necessary; and the Senate agree to the same.

Amendment numbered 14:

That the House recede from its disagreement to the amendment of the Senate numbered 14, and agree to the same with an amendment as follows:

In line 7 of the matter inserted by said amendment strike out the word "building" and insert in lieu thereof the word buildings; and the Senate agree to the same.