FLE EIISTEBNUMBER 71

Washington, Thursday, April 10, 1952

TITLE 3-THE PRESIDENTPROCLAMATION 2971CH=a HETL DAY, 1952

BY THE PRESIDENT OF THE UNITED STATES

or AMXERICA

A PROCLAIATION

WHEREAS the Congress, by a jointresolution of May 18, 1928 (45 Stat. 617),authorized and requested the Presidentof the United States to issue annually aproclamation setting apart May I asChild Health Day; and

WHEREAS the promotion of condi-tions that make for sound health for theNation's children should be of vital con-cern to all Americans; and -

WHEREAS it is fitting that we setaside a day each year for special consid-eration of means for the improve-ment of the health and well-being ofour children:

NOW, THEREFORE, I, HARRY S.TRUMAN, President of the -UnitedStates of America, do hereby designatethe first day of May, 1952, as ChildHealth Day; and I invite all agencies andorganizations interested in the well-being of children to unite upon that dayin celebrating the past year's gains inthe health of children and in consider-ing how programs for the protectionand development of the health of therising generation may be furtheradvanced.

IN WNESS WHEREOP, I have here-unto set my hand and caused the Sealof the United States of America to beaffixed.

DONE at the City of Washington thisFifth day of April in the year of our

Lord nineteen hundred and[sEAtI fifty-two, and of the Independ-

ence of the United States ofAmerica the one hundred and seventy-sixth.

HARRY S. TRUMUTBy the President:

DEAN AcHESON,Secretary of State.

[iF. R. DOc. 52-4162; TIled, Apr. 9, 1952;.10:35 a. 3n.]

EXECUIIVE ORDER 10340DIRECTING THE SECRETARY OP CO,=I4EC

To TAcx Possmssro or AND Or-m.T TucPLAxTs AND FAcznxs oF Csznrur ST=ELCOMIPANIESWHMREAS on December 16, 1950, I

proclaimed the existence of a nationalemergency which requires that the mil-tary, naval, air, and civilian defenses ofthis country be.streagthened as speedilyas Possible to the end that we may beable to repel any and all threats againstour national security and to fulfill ourresponsibilities In the efforts being madethroughout the United Nations andotherwise to bring about a lasting peace;and

WHEREAS American flightng menand fighting men of other nations ofthe United Nations are now engaged indeadly combat with the forces of aggres-sion in Korea, and forces of the UnitedStates are stationed elsewhere overseasfor the purpose of participating In thedefense of the Atlantic Communityagainst aggression; and

WHEREAS the 'weapons and othermaterials needed by our armed forcesand by those Joined with us In the de-fense of the free world are produced toa great extent In this country, and steelis an Indispensable component of sub-stantially all of such weapons and ma-terials; and

WHEREAS steel Is likewise indispens-able to the carrying out of prouams ofthe Atomic Energy Commisslon of vitalimportance to our defense efforts; and

WHtEREAS a continuing and uninter-rupted supply of steel Is also Indispens-ableto the maintenance of the economyof the United States, upon which ourmilitary strength depends; and

WHEREAS a controversy has arisenbetween certain companies in the UnitedStates producing and fabricating steeland the elements thereof and certain oftheir workers represented by the UnitedSteel Workers of America, CIO, regard-ing terms and conditions of employment;and

WHEREAS the controversy has notbeen settled through the processes of col-lective bargaining or through the effortsof the Government, including tho.e ofthe Wage Stabilization Board, to which

(Continued on p. 311)

CONTENTSTHE PRESIDENT

Proclamation PFgeChild Health Day, 1952--.... 3139Executive OrdersDirecting the Secretary of Com-

merce to take possession of andoperate the plants and facilitiesof certain steel companies--- 3139

Discontinuing the Rose Wsland andthe Tutull Island Naval De-fensive Sea Areas and NavalAirspace Reservations-. 3143

EXECUTIVE AGENCIESAgriculture DepartmentSee also Commodity Credit Corpo-

ration; Production and Market-Ing Administration.

Notices:Soil Conservation Service; dele-

gation of authority with re-spect to determining and ad-vising the Director, Bureau ofLand Management, concern-ing development of minerals-

Air Force DepartmentPublic information security guid-

ance for manufacturers hold-ing contracts awarded by theDepartment (see DefenseDepartment).

Allen Property, Office ofNotices:

Vesting orders, etc.:Francois, Jean Emile-.....Lolkeman, Dr. Jan----.Rolland, Robert Jean Achllle_Von Luettfchau, Margaret

Palmer Soutter. ...Army DepartmentPublic information. security guid-

ance for manufacturers hold-ing contracts awarded by theDepartment (see DefenseDepartment).

C il Aeronautics Administra-fon

Rules and re-ulations:Danger areas; alterations--_-

Commerce DepartmentSee Civil Aeronautics Administr-

tion; National Production Au-thority.

3139

3180

31853185

3185

3144-

THE PRESIDENT

FEUHEIHAL. 07EGISTED

Published daily, except Sundays, Mondaysand days following official Federal holidays,by the Federal Register Division, NationalArchives and Records Service, General Serv-ices Administration, pursuant to the au-thority contained in the' Federal RegisterAct, approved July 26, 1935 (49 Stat. 500, asamended; 44 U. S. C., ch. 8B), under regula-tions prescribed by the Administrative Com-mittee of the Federal Register, approved bythe President. Distribution is made only bythe Superintendent of Documents, Govern-ment Printing Office, Washington 25, D. C.

The regulatory material appearing hereinis keyed to the Code of Federal Regulations,which is published, under 50 titles, pursuantto section 11 of the Federal Register Act, asamended June 19, 1937.

The FEDERAL REGISTER will be furnished bymail to subscribers, free of postage, for $1.50per month or $15.00 per year, payable. inadvance. The charge for individual copies(minimum 154) varies in proportion to thesize of the issue. Remit check or moneyorder, made payable to the Superintendentof Documents, directly to the GovernmentPrinting Office, Washington 25, D. C.

There are no restrictions on the republica-tion of material -appearing in the Ftzar,REGISTER.

CFR SUPPLEMENTS(For use during 1952)

The following Supplements are nowavailable:

Titles 4-5 ($0.45)Title 26: Parts 170-182 ($0.55)Title 26: Parts 183-299 ($1.75)

Previously announced: Title -3 (full text)($3.50); Titles 10-13 ($0.35); Title 17($0.30); Title 18 ($0.35); Titles 22-23

($0.40); Title 25 ($0.30)

Order fromSuperintendent of Documents, GovernmentPrinting Office, Washington 25, D. C.

CONTENTS-ContinuedCommerce Department-Con. -P PageDirecting the Secretary to take

possession of and operate theplants and facilities of certainsteel companies (see Executiveorder).

Commodity Credit CorporationNotices:

Sales of certain commodities atfixed prices; April 1952 do-mestic and export price list.. 3179

Customs BureauRules and regulations:

Articles conditionally free, sub-ject to a reduced rate, etc-_ 3144

Drawback; supplies for certainvessels and aircraft ------- 3146

CONTENTS-Continued

Customs Bureau-Continued PageRules and regulations-Continued

Vessels in foreign and domestictradfes --------------------- 3144

Defense DepartmentNotices:

Public information securityguidance for manufacturersholding contracts awarded byArmy, Navy or Air Force.... 3178

Economic Stabilization AgencySee Price Stabilization, Office of.Federal Communications Com-

missionProposed rule making:

Frequency allocations and radiotreaty matters; general rulesand regulations ----------- 3175

Stations on land and on ship-board in the maritime serv-ices (2 documents)---- 3175, 3176

Federal Power CommissionNotices:- Star Valley Power and Light

Co.; hearing ------------- 3179Housing and Home Finance

AgencySee Public Housing Administra-

tion.Indian Affairs BureauRules and regulations:

Operation and maintenancecharges:

Flathead Indian IrrigationProject, Mont ---------- 3146

Fort Peck Indian IrrigationProject, Mont ---------- 3146

Interior DepartmentSee Indian Affairs Bureau; Land

Management, Bureau of; Na-tional Park Service.

Internal Revenue BureauRules and regulations:

Tax, income:Internal Revenue Code ---- 3147Taxable years beginning after

Dec. 31, 1941 (2 docu-ments) ------------------- 3147

Interstate Commerce Commis-sion

Notices:Applications for relief:

Formaldehyde, dry, fromBishop, Tex., and Tallant,Okla., to official territory-- 3184

Iron and steel articles fromIllinois and official terri-tories to southern Virginia. 3185

Lard and related articles fromDubuque, Iowa, to New Or-leans, La ---------------- 3184

Logs from Jasper and LakeCity, Fla., to Macon, Ga_.. 3185

Magazines and periodicals:Dayton and Springfield,

Ohio, to New Orleans, La- 3184Sparta, Ill., to New York,

N. Y., and Philadelphia,Pa ----------------- 3184

-Olives from southern ports toColorado and Wyoming-... 3183

CONTENTS-ContinuedInterstate Commerce Commis- P090

sion-Contnued-Notices-Continued

Applications for relief-Con.Ore, ilmenite, from Mel-

bourne, Fla., to Pittsburghand Pittsburgh (West End),Pa ---------------------- 3185

Peat and humus from Gulfports to Kansas, Nebraskaand Wyoming ----------- 3183

Petrolatum, crude, froij Xan-sas and Oklahoma to Penn-sylvania, West Virginia,Ohio and New York ------ 3183

Rules and regulations:Car service; demurrage on

freight cars -----------------. 3166

Justice DepartmentSee Alien Property, Office of.

Land Management, Bureau ofDelegation, of authority with re-

spect to determining and advis-ing the Director of the Bureauconcerning, development ofminerals (see Agriculture De-partment).

Notices:Alaska:

Shorespace restoration ------ 3178Small tract classification;

cancellation ------------ 3179

National Park ServiceRules and regulations:

Yorktown bathing beach andpicnic area, Colonial Na-tional Historical Park; auto-mobile fees ---------------- 3161

,National Production AuthorityRules and regulations:

Metalworking machines--fin-ishes (M-104) ----------.- 3161

Tin (M-8) ------------------ 3155

Navy DepartmentPublic Information security guid-

ance for manufacturers holdingcontracts awarded by the De-partment (see Defense Depart-ment).

Price Stabilization, Office ofNotices:

Ford Motor Co.; basic pricesand charges for new passen-ger automobiles ----------- 3180

Rules and regulations:Adjustments 'in the -ceiling

prices of certain lead and zincproducts and the service ofgalvanizing; galvanized prod-ucts (GCPR, SR 76) -------- 3154

Ceiling prices:Certain processed fruits and

berries of the 1951 pack;adjusted ceiling prices forcertain app 1 e products(CPR 56, SR 5) ---------- 3153

Sales of locally produced beefon the Island of Hawaii Inthe Territory of Hawaii(GCPR, SR 97) ---------- 3152

3140

Thursday, April 10, 1952

CONTENTS-Continued

Production and Marketing Ad- Pageministration

Proposed rule making:Milk handling, marketing areas:

Fort Wayne, Ind.; extensionof time for filing excep-twons . ------------ 3166

Topeka, Kans ---...--- 3166Rules and regulations:

Peanuts; marketing quota regu-lations for 1952 crop------ 3143

Public Housing AdministrationNotices:

Description of Agency and pro-grams and final delegationsof authority:

Central Ofce Organization- 3180Field Organization-_, ----- 3180

Securities and Exchange Com-mission

Notices:Hearings, etc.:

Central Vermont Public Serv-ice Corp ------- --- 3181

Graham-Paige Corp ------- 3182Niagara M.ohawk Pow er

Corp --- 8--------------3181South Jersey Gas Co ._____ 3181

Proposed rule making:Exemption of certain transac-

tions -------------- 3177Soil Conservation ServiceDelegation of authority to deter-

mine and advise the Director,Bureau of Land Management,concerning development of min-erals (see Agriculture Depart-ment).

Tariff CommissionNotices:

Wood screws; hearing -------- 3183Treasury DepartmentSee Customs Bureau; Internal

Revenue Bureau. -Veterans' AdministrationRules and regulations:

Medical; provisional regula-tions ---------.----------- 3162

National Service Life Insur-ance ----------------- 3162

United States Government LifeInsurance ------ --- 3162

Vocational rehabilitation andeducation; registration andresearch ------------ 3162

CODIFICATION GUIDEA numerical list of the parts of !he Code

of Federal liegulations affected by documentspublished-in this issue. Proposed rules, asopposed to final actions, are- identified assuch.

Title 3 PagChapter I (Proclamations):

- ---- 3139Chapter II (Executive orders) :

8683 (see EO 10341)------- :.- 31438729 (see EO 10341) --------. 314310340 313910341 3----------------- 3143

Title 7. - "Chapter VII: -Part729 --------- --- 3143

Chapter IX:Part 932 (proposed) ...-..-.. 3166Part 980 (proposed) ------- 3166

FEDERAL REGISTER

CODIFICATION GUIDE-Con.Title 14 - PaeChapter II:

Part6O8, -.----------------- 3144Title 17Chapter II:

Part 240 (proposed)- -- 31'7Title 19Chapter I:Part 3144Part I .3144Part 22 .... 3146

Title 25Chapter I:

Part 130 (2 documents)--_- 3146Title 26Chapter I:

Part 19 ----------------- 3147Part 29 (2 documents)---. 3147

Title 32AChapter II (OPS):

CPR 56, SR 5 -------------- 3153GCPR, SR 76. - --- 3154GCPR, SR 97.- 3152

Chapter VI (NPA):-8 -------------------- 3155

Mf-104_ 3161

Title 36 -Chapter I:

Part 13 -------- 3161Title 38Chapter I:Part 6 ----. - .... - ---------- 3162Part 8 3162Part1.. . . 3162Part 21 ........ 3162

Title 47Chapter I:

Part 2 (proposed). . 3175Part 7 (proposed) (2 docu-

ments) 3175, 3176Part 8 (proposed) (2 docu-

ments) ------- 3175, 3176Title 49Chapter I:

Part 95.- 3166

the controversy was referred on Decem-ber 22, 1951, pursuant to ExecutiveOrder No. 10233, and a strike has beencalled for 12:01 A. ZM, April 9, 1052; and

WHEREAS a work stoppage wouldimmediately jeopardize and Imperil ournational defense and the defense of thoseJoined with us in resisting aggression,and would add to the continuing dangerof our soldiers, sailors, and airmen en-gaged in combat In the field; and

WHEREAS in order to assure the con-tinued availability of steel and steelproducts during the existing emergency,it Is necessary that the United Statestake possession of and operate theplants, facilities, and other property ofthe said companies as hereinafter pro-vided: -

NOW, THEREFORE, by virtue of theauthority vested in me by the Constitu-tion and laws of the United States, andas President of the United States andCommander in Chief of the armed forces

3141

of the United States, It Is hereby orderedas follows:

1. The Secretary of Commerce ishereby authorized and directed to takepossesslon of all or such of the plants,facilities, and other property of thecompanies named in the list attachedhereto, or any part thereof, as he maydeem necessary in the interests of na-tional defense; and to operate or toarrange for the operation thereof and todo all things necessary for, or incidentalto. such operation.

2. In carrying out this order the Sec-retary of Commerce may act through orwith the aid of such public or privateinstrumentalities or persons as he maydesignate; and all Federal agencies shallcooperate with the Secretary of Com-merce to the fullest extent pomible incarrying out the purposes of this order.

3. The Secretary of Commerce shalldetermine and prescribe terms and con-ditions of employment under which theplants, facilities, and other propertiespozsession of which is taken pur;uant tothis order shall be operated. The Sec-retary of Commerce shall recognize therights of workers to bargain collectivelythrough representatives of their ownchoosing and to engage in concertedactivities for the purpose 'of collectivebargaining, adjustment of grieiances, orother mutual aid or protection, providedthat such activities do not interfere withthe operation of such plants, facilities,and other properties.

4. Except so far as the Secretary ofCommerce shall otherwise provide fromtime to time, the managements of theplants, facilities, and other propertiespossession of which is taken pursuant tothis order shall continue their functions,Inclu&kg the collection and disburse-ment of funds in the usual and ordinarycourse of business in the names of theirrespective companies and by means ofany Instrumentalities used by such com-panies.

5. Except so far as the Secretary ofCommerce may otherwise direct, exist-ing rights and obligations of such com-panies shall remain in full force andeffect, and there may be made, in duecourse, payments of dividends on stock,and of principal, interest, sinking funds,and all other distributions upon bonds,debentures, and other obligations, andexpenditures may be made for otherordinary corporate or business purposes.6. Whenever in the judgment of the

Secretary of Commerce further posses-sion and operation by him of any plant,facility, or other property is no longernecessary or expedient in the interest ofnational defense, and the Secretary hasreason to believe that effective futureoperation is assured, he shall return thepossession and operation of such plant,facility, or other property to the com-pany in possession and control thereofat the time possession was taken underthis order.

7. The Secretary of Commerce is au-thorized to prescribe and Issue such reg-ulations and orders not inconsistentherewith as he may deem necessary ordesirable for carrying out the purposesof this order; and he may delegate andauthorize subdelegation of such of his

THE PRESIDENT

functions under this order as he niaydeem desirable.

HARRY S. TRnnNTHE WHITE HousE, .

April 8tlr, 1952; 9:50 V. m. e. s. t.LWST

American Bridge Company525 William Penn PlacePittsburgh, Pennsylvania

American Steel & Wire Company of NewJersey

Rockefeller BuildingCleveland, Ohio

Columbia Steel CompanyRuss BuildingSan Francisco, California

Consolidated Western Steel CorporationLos Angeles, California

Geneva Steel CompanySalt Lake City, Utah

Gerrard Steel Strapping Company2915 W. 47th StreetChicago 32, Illinois

National Tube Company525 William Penn PlacePittsburgh, Pennsylvania

Oil Well Supply Company2001 North Lamar StreetDallas, Texas

Tennessee Coal, Iron & Railroad CompanyFairfield, Alabama

United States Steel Company525 William Penn PlacePittsburgh, Pennsylvania

United States Steel Corporation71 BroadwayNew York 6, New York

United States Steel Products Company30 Rockefeller PlazaNew York, New York

United States Steel Supply CompaU..208 South La Salle StreetChicago, Illinois

Virginia Bridge CompanyRoanoke, Virginia

Alan Wood Steel Company and SubsidiariesConshohocken, Pennsylvania

American Chain and Cable Company, Incor-porated

929 Connecticut AvenueBridgeport 2, Connecticut

American Chain and Cable CompanyMonessen, Pennsylvania

Armco Steel Corporation'703 Curtis StreetMiddletown, Ohio

Armco Drainage & Metal Products, Incorpo.rated

'703 Curtis StreetMiddletown, Ohio

Atlantic Steel CompanyP. 0. Box 1714Atlanta, Georgia

Babcock and Wilcox Tube CompanyBeaver Falls, Pennsylvania

Borg-Warner Corporation310 S. Michigan AvenueChicago 4, Illinois

Continental Copper and Steel -Industries,Incorporated

Braeburn, Pennsylvania

Continental Steel CorporationWest Markland AvenueKokomo, Indiana

Copperweld Steel Company-Glassport, Pennsylvania

Detroit Steel Corporation1025 South Oakwood AvenueDetroit 9, Michigan

Eastern Stainless Steel CorporationBaltimore 3, Maryland

Firth Sterling Steel and Carbide CorporationDemmler RoadMcKeesport, Pennsylvania

Follansbee Steel Corpoation3rd and Liberty AvenuePittsburgh 22, Pennsylvania

Granite City Steel Company20th Street and Madison AvenueGranite City, Illinois

Great Lakes Steel CorporationTecumseh Road "Ecorse" Detroit 18, Michigan

Hanna Furnace CorporationEcorse, Detroit 18, Michigan

Harrisburg Steel Corporation10th and Herr StreetsHarrisburg,- PennsylvaniaBolardi Steel CompanyMilton, Pennsylvania

Heppenstall Company-4620 Hatfield StreetPittsburgh, Pennsylvania

Inland Steel Company88 S. Dearborn StreetChicago 3, Illinois

Joseph T. Ryerson & Son, Incorporated2558 W. 16th StreetChicago 80, Illinois

Interlake Iron Corporation1900 Union Commerce BuildingCleveland 14, Ohio

Pacific States Steel CorporationLathan Square BuildingOakland 12, California

Pittsburgh Coke & Chemical Company1905 Grant BuildingPittsburgh 19, Pennsylvania

H..K. Porter Company, Incorporated1932 Oliver BuildingPittsburgh 22, Pennsylvania

Buffalo Steel DivisionH. K. Porter Company, IncorporatedFillmore AvenueTonawanda,-New York

Joslyn Manufacturing & Supply Company20 N. Wacker DriveChicago 6, Illinois

Joslyn Pacific Company5100 District BoulevardLos Angeles 11, California

Latrobe Electric Steel CompanyLatrobe, Pennsylvania

E. J. Lavino & Company1528 Walnut Street -Philadelphia, Pennsylvania

Lukens Steel CompanyS. First AvenueCoatesville, Pennsylvania

McLouth Steel Corporation300 S. LivernoisDetroit 17, Michigan

Newport Steel CorporationNinth and Lowell StreetsNewport, Kentucky

Northwest Steel Rolling Mills, Incorporated4315 9th Street N. W.Seattle, Washington

Northwestern Steel & Wire CompanySterling, Illinois

Reeves Steel, Manufacturing Company137 Iron AvenueDover, Ohio

John A. Roebling's Sons Company640 South Broad StreetTrenton, New JerseyRotary Electric Steel CompanyBox 90Detroit 20, MichiganShefaeld Steel CorporationSheffield StationKansas City 8, MissouriShenango-Penn, Mold Company812 Oliver BuildingPittsburgh 80, PennsylvaniaShenango Furnace Company812 Oliver BuildingPittsburgh 30, PennsylvaniaStanley Works195 Lake StreetNew Britain, ConnecticutUniversal Cyclops Steel CorporationStation StreetBridgeville, PennsylvaniaVanadium-Alloys Steel CompanyLatrobe, PennsylvaniaVulcan Crucible Steel Company1 Main StreetAliquippa, PennsylvaniaWheeling Steel Corporation1134 Market StreetWheeling, West VirginiaWoodward Iron CompanyWoodward, AlabamaAllegheny Ludlum Steel CorporationOliver BuildingPittsburgh 22, PennsylvaniaBethlehem Steel Company701 East 3rd StreetBethlehem, PennsylvaniaBethlehem Pacific Coast Steel Corporation20th & Illinois StreetsSan Francisco, California

Bethlehem Supply Company of CaliforniaLos Angeles, California

Bethlehem Supply CompanyTuisa, Oklahoma

Buffalo Tink CorporationLackawanna, New YorkCharlotte, North CarolinaDunellen, New JerseyDundalk CompanySparrows Point, Maryland

A. M. Byers Company717 Liberty AvenuePittsburgh 80, Pennsylvania

Colorado Fuel & Iron Corporation575 Madison AvenueNew York 22, New York

Claymont Steel CorporationClaymont, Delaware

CrUcible Steel CompanyOliver BuildingPittsburgh 22, Pennsylvania

Jones & Laughlin Steel CorporationThird Avenue and Ross StreetPittsburgh 30, Pennsylvania

J. & L. Steel Barrel Company3711 Sepvlva StreetPhiladelphia 37, Pennsylvania

National Supply Company1400 Grant BuildingPittsburgh 30, Pennsylvania

Pittsburgh Steel Company1600 Grant BuildingPittsburgh 19, PennsylvaniaJohnson Steel & Wire Company, Incorporated53 Wiser AvenueWorcester 1, Massachusetts

Thursday, April 10, 1952

Republic Steel CorporationRepublic BuildingCleveland 1, Ohio

Truscon Steel Company1315 Albert StreetYoungstown, Ohio

Rheem Manufacturin; CompanyRuss BuildingSan Francisco 4, California

Sharon Steel CorporationS. Irvine AvenueSharon, Pennsylvania

Valley Mould & Iron CorporationHubbard, Ohio

Youngstorar Sheet & Tube Company4-4 Central SquareYoungstown 1, Ohio

FEDERAL REGISTER

Emsco Derrick & Equipment Company6811 S. Alameda StreetLos Angeles 1, California[. . Doe. 52-4146; filed, Apr. 8, 2052j

10:50 p. m.]

EXECUTIVE ORDER 10341DISCONTIIo THE ROSE ISLAZD AIM M

TuT IA lsuum NAVAL DzrmzsrvW SrAAn ts AD NAVAL AIRSPACE R-iRuvA-TIOIS

By virtue of the authority vested In meby section 2152 of title 18 of the UnitedStates Code and section 4 of the AirCommerce Act of 1926 (44 Stat. 570; 49U. S. C.1174), the following-designated

3143

naval defensive sea areas and naval air-space reservations, established by Execu-tive Order No. 8683 of February 14, 1941,as amended by Executive Order No. 8729of April 2,1941, are hereby discontinued:

1. Rose Dsland Naval Defensive SeaArea.

2. Rose Island Navil Airspace Reser-vation.

3. Tutula Island Naval Defensive SeaArea.

4. Tutuila Island Naval Airspace Res-ervation.

* HARRY S. TRULIANMm Wnxmr HOuSr,

April 8. 1952.[P. R. Dcc. 52-4133; Fied. Apr. 8, 1052;

4:27 p. m.]

RULES AND REGULATIONS

TITLE 7-AGRICULTUREChapter VII-Production and Mar-

keting Administration (AgriculturalAdjusthent), Department of Agri-culture

[1023 (Peanuts-52)-, Amdt. 31

PARr 729-PrAxuTsMARKETMIG QUOTA REGULATIONS FOR 1952

CROP

The amendments set forth herein aremade to give effect to certain changesmade in the peanut marketing quotaprovisions of the Agricultural Adjust--ment Act of 1938, as amended (7 U. S. C.1359) by Public Law 285, 82d Congress,approved March 28, 1952.

Public Law 285 repealed subsections(f), (g), (h), and (I) of section 359 of

The act. In general, these subsectionshad permitted farmers to market certainexcess peanuts without payment of themarketing penalty provided such peanutswere delivered to an agent of the Secre-tary of Agriculture at their value forcrushing for oil, and had also authorizedfarmers "who so delivered their excesspeanuts to receive price support with re-spect to the quota peanuts produced onthe farm.

All peanut farmers have recently beengiven individual written notices oX 1952farm acreage allotments and farm per-mitted peanut acreages, and have beeninformed that, if the acreage of peanutsharvested in 1952 does not exceed thefarm permitted peanut acreage, nomarketing penalty will apply to any ex-cess peanuts which are delivered to anagent of the Secretary at their value forcrushing for oil. Farmers in southern-most areas of the United States havealready begun the planting of their 1952crops of peanuts, and farmers in theother peanut-producing areas of theNation are completing their plans for theproduction of peanuts in 1952. Itwill benecessary for many of the farmers whoplanned to produce excess peanuts foroil this year to revise their plans. Theamendments contained herein should,therefore, be made effective as soon as

possible in order that the regulationsmay conform to the provisions of lawnow in effect and in order that each pea-nut farm operator may be promptly noti-fied that excess peanuts cannot be pro-duced in 1952 for delivery for crushingand that the marketing of any excesspeanuts of the 1952 crop will be subjectto penalty.

The marketing quota regulations forthe 1952 crop of peanuts (16 F. R. 11946)are hereby amended as follows:

a. Section 729.311 Is amended by:1. Changing § 729.311 (h) to read as

follows:§ 729.311 Definitions. *(h) "Farmpeanut acreage" means the

acreage on the farm planted to peanutsin 1952 as determined by the county com-mittee, less any such acreage with re-spect to which It is established by theoperator or otherwise to the satisfactionof the county committee that the entireproduction therefrom has not and willnot be picked or threshed either beforeor after marketing from the farm: Pro-vided, however, That:

(1) The farm peanut acreage shall beconsidered equal to the farm allotmenton a farm for which such allotmentequals or exceeds one acre, if the acreagein excess of the farm allotment fromwhich peanuts are picked or threshed isnot grepter than one-tenth acre or threepercent of the farm allotment, whicheveris larger; or

(2) The farm peanut acreage shall beconsidered equal to one acre on a farmfor which the farm allotment is equal toor less than one acre, and the acreagefrom which peanuts are picked orthreshed does not exceed 1.1 acres; butthe provisions of subparagraphs (1) and(2) of .this paragraph shall not apply"unless the operator:

(I) Submits evidence satisfactory tothe county committee that the pickingor threshing of peanuts was completedbefore he received notice of the acreageplanted to peanuts, or that peanuts werepicked or threshed from an acreage inexcess of the larger of the farm allot-ment or one acre. notwithstanding anhonest effort on the part of the operator

to dispose of the excess by means otherthan by picking or threshing, and

(i) A quantity of peanuts equal to thecounty committee's estmate of the pro-duction from the acreage in excess of thelarger of the farm allotment or one acre,is disposed of on the farm in.such man-ner that the peanuts cannot thereafterbe u.ed or marketed as peanuts: Providedfurther That the maximum acreage lunitprescribed in subparagraph (1) or (2)of this parauraph shall not be applicableif the State committee concurs in thefindings and recommendations of thecounty committee that the unusualcircumstances from which the excess re-sulted are such that the maximum limi-tation should not apply.

2. Daleting § 729.311 (1).b. Section 729.312 Is amended by

changing the first sentence to read"Farm allotments shall beroundedto thenearest one-tenth acre"

c. Section 729.314 Is amended to readas follows:

§ 129.314 Approval of determfzation.The State committee or its authorizedrepresentative shall review farm allot-ments and normal yields and the Statecommittee may correct or require thecorrection of any determination made inconnection therewith pursuant to§§ 729.310 to 729.331. Farm allotmentsshall be approved by the State committeeor its authorized representative and offi-cial notice of the farm allotment shallnot be given to any person until suchallotment has been so approved.

d. Section 729.315 is amended to readas follows:

i729.315 Applicatio. for review.Any producer who is dissatisfied withthe farm allotment or marketing quotaestablished for his farm, may, withinfifteen days after mailing of the oficialnotice, file application with the countycommittee to have such allotment orquota reviewed. Farm allotments andmarketing quotas shall be reviewed bya review committee in accordance withthe marketing quota review regulations

3144 RULES- AND REG.ULATIONS

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Thursday, April 10, 1952

carried cargo shall make reference to-the nature of such cargo, identifyingit with the importing vessel.

(g) A vessel with such prematurelylanded or overcarried cargo on boardshall comply upon arrival at each inter-mediate port and at destination with allthe requirements of this part relating toforeign residue cargo for domestic ports.When such prematurely landed or over-carried cargo arrives at the'port of des-tination under an approved applicationand substitute traveling manifest, thecollector shall verify the application andsubstitute traveling manifest- coveringthe cargo with the manifest filed for thecargo on the original entry of the im-porting vessel. The substitute travelingmanifest, carried forward from port toport by the on-carrying vessel, shall befinally surrendered at the port where thelast portion of the prematurely landedor overcarried cargo is discharged.(R. S. 251, sec. 624, 46 Stat. 759; 19 U. S. C.e6, 1624)

3. Section 4.85 ii further amended asfollows:

a. Paragraph (b) is deleted and para-graphs (c) to (h) are redesignated asparagraphs (b) to (g), respectively.

b. Redesignated paragraph (b) isamended to read:

(b) Before a vessel proceeds from onedomestic port to another with cargo orpassengers-on board as described in thepreceding paragraph, the master shallpresent to the collector at such port ofdeparturean application in triplicate oncustoms Form 1385 with subdivision 1properly executed as an application fora permit to proceed to the next port ofcall. Each application shall be accom-panied by customs Form 3221, Certificateon Vessel -Proceeding to Another PortWith Foreign Cargo, in duplicate, withthe information called for by the formshown thereon in conformity with thedata shown on the oath filed at the firstport of entry by the master on customsForm 3251 (see § 4.9 (a)). However, atsubsequent ports of departure, the re-quired certificate on customs Form 3221may bear the following notation in lieuof showing foreign ports and dates ofdeparture therefrom:

For foreign ports and dates of departuretherefrom, see attached Form 3221 issued at

- , the first domestic port of en-try. These* movements shall be recordedas foreign transactions.

Upon the execution of subdivision 2 ofForm 1385 as a permit to proceed, thesecond and third copies thereof shall bereturned to the master for filing at thenext domestic port of call. There shallalso be returned to the master the ves-sel's document, if on deposit and a copyof the complete inward foreign manifestof the vessel certified at the first port ofentry (referred to hereinafter as thetraveling manifest)," to which shall beattached one of the copies of each cer-tificate on Form 3221, signed by the col-lector at the port of issuance. If no in-ward foreign cargo or passengers are tobe discharged at the next port of call,that fact shall be indicated on customs

FEDERAL REGISTER

Forms 1385 and 3221 by Inserting afterthe name of the port to which the vesselis to proceed the phrase to "load only"in parentheses. The name of that portwill not appbar in section (a) of subdivi-sion 1 of Form 1385 or in the list of portsfor which cargo or passengers are des-tined in the body of Form 3221.

c. Redesignated paragraph (c) isamended to read as follows:

(c) Upon the arrival of a vessel at thenext and each succeeding domestic portwith inward foreign cargo or passengersstill on board, the master shall reportarrival and shall make entry within 24hours. To make such entry subdivision3 of customs Form 1385 received by themaster on clearance from the precedingport shall be completely executed by himand.both copies thereof presented to the*collector. The master shall also presentto the collector the master's oath oncustoms Form 3251, the traveling mani-

.fest with the certificates on Form 3221signed by the collectors at thd precedingports, " a manifest (in such number ofcopies as may be required for local cus-toms purposes) of any cargo or passen-gers on board manifested for dischargeat that port (referred to hereinafter asan abstract manifest), or a "pro forma"manifest if no inward foreign cargo orpassengers are to be discharged at thatport, lists in duplicate of all unenteredarticles acquired abroad by the officersand members of the crew which are stillon board and of the stores remaining onboard. The traveling manifest shallserve the purpose of a copy of an ab-stract manifest at the port where it Isfinally surrendered. The abstract or"pro forma" manifest shall be ready forpresentation to the customs boardingofficer upon the arrival of the vessel atthe port. The "pro forma" manifestshall be on customs Form 7527-A or Bbearing the following legend:

Vessel on an inward foreign voyage ",ithresidue cargo for . No cargoor passengers for discharge at this pcr.No additional vessel bond on customsForm 7567 or 7569 need be filed at sub-sequent ports of entry.

d. Redesignated paragraph (e) isamended to read: "

(e) The traveling manifest, togetherwith the signed certificates on customsForm 3221 which were attached theretoat preceding domestic ports of call, shallbe finally surrendered to the collector atthe port of final discharge of inwardforeign cargo in the United States for re-tention In his files, unless residue for-eign cargo remains on board for dis-charge at foreign ports, in which case itshall be so surrendered to the collector atthe final port of departure from theUnited States.

e. The first sentence of redesignatedparagraph (f) is amended to read:"Upon the arrival of a vessel with Inwardforeign cargo on board at a subsequentport in the same cdmptroller district asthe port of first entry, whether or notfor discharge of cargo, the master shallfurnish to the comptroller of customs for

3145

that district a report on customs Form3253 In lieu of a copy of the manifest forthe cargo manifested for discharge inthat comptroller district."

f. Redesignated paragraph (g) isamended to read:

(g) If a vessel proceeds to anothercomptroller district to unlade inwardforeign cargo, immediately upon arrivalat the first port in the district and beforeentry of the vessel, the master shall mailor deliver to the comptroller for the dis-trict a manifest of the foreign cargoremaining on board manifested for dis-charge in that comptroller district andof all unentered articles acquired abrcadby the officers or crew of the vessel andof the stores on board. If the vesselproceeds to another port in the comp-troller district to unlade Inward foreigncargo, the procedure prescribed in thepreceding paragraph shall be followed.(R. S. 161. 251, Ec3. 439, 442, 443, 444, 624,46 Stat. 712. 713, 759, Lec. 2, 23 Stat. 118;5 U. S. C. 22. 19 U. S. C. CS, 1439, 1442. 1443.1444. 1624, 46 U. S. C. 2. Sec. 102, Rearg.Plan No. 3 of 1946; 3 CFP 1046 Supp. -Ch.IV)

4. Section 4.86 (a) is amended as fol-lows:

'a. The second sentence is amendedto read: "The traveling manifest shallshow all the optional ports of delivery."

b. A new sentence is added at the endof the paragraph to read: "The travel-ing manifest shall be amended to showthe designated ports of discharge andshall be used to verify the abstractmanifests surrendered at subsequentports."(R. S. 161, 251, lees. 442, 443, 444, 624, 46Stat. 713, 759, cec. 2, 23 Stat. 118; 5 U. S. C.22. 19 U. S. C. CS. 1442 , 1443, 1444, 1621, 46U. S. C. 2. Sec. 102. Reorg. Plan No. 3 of1946; 3 CFR, 1946 Supp, Ch. IV)

5. Section 4.88 (d) is amended toread:

d) If the vessel is proceeding toother ports in the United States withforeign residue cargo on board mani-feated for discharge at a foreign portor ports; a procedure like that set forthIn § 4.85 shall be followed with- respectthereto.(R. S. 161. cecs. 442, 622, 624, 46 Stat. 713,159. sc. 2, 23 Stat. 118; 5 U. S. C. 22, 19U. S. C. 1442, 1622, 1624, 46 U. S. C. 2. Sec.102. Rearg. Plan No. 3 of 1946; 3 CFR 19-SSupp., Ch. IV)

6. Section 10.60, Customs Regu-lations of 1943 (19 CFR 10.60), asamended, is further amended as fol-lows:

a. Paragraph (a) is amended bychanging the period at the end thereofto a comma and adding "except as pro-vided for by paragraph (g) of this sec-tion."

b. Paragraph (f) is amended -bychanging the first letters n the first twosentences to lower case and inserting atthe beginning of each such sentence'"nle s transfer is permitted under- theprovisions of paragraph (g) of this ssc-tion," and by deleting the parentheticalmatter at the end of the paragraph.

RULES AND REGULATIONS

c. A new paragraph (g) Is added, toread:

(g) If a request is made for permissionto transfer supplies or stores from onevessel to another which would be entitledto withdraw them free of duty and taxunder section 309 or 317, Tariff Act of1930, as amended, or section 3451 of theInternal Revenue Code, the collector inhis discretion may permit the articlesto be so transferred under customssupervision under a permit on customsForm 3171 in lieu of a formal withdrawalunder the pertinent statute. In such acase, the pertinent statute shall be indi-cated by an endorsement made on thepermit by the collector. If the vesselto which vessel supplies are transferredIs in a class'of trade in which it is notrequired to enter, the customs inspectorsupervising the transfer shall make asuitable notation of the transfer in thestores log of the vepsel to which transferIs made, unless it appears that the ar-ticles were previously laden in the UnitedStates free of duty and tax for suppliesor sea stores on a vessel in a class of tradein which it was not required to enter anda customs officer was not required tomake a notation in a stores log of thevessel.(Sec. 5 (a), 52 Stat. 1080, sec. 3, 55 Stat. 602;19 U. S. C. 1309)

[SEAL] D. B. STRUBINGER,Acting Commissioner of Customs.

Approved: April 3, 1952.JOHN S. GRAHAm,

Acting Secretary of the Treasury.

[F. R. Doe. 52-4095; Filed, Apr. 9, 1952;8:49 a. m]

[T. D. 52966]PART 22--DRAWBACK

SUPPLIES FOR CERTAIN VESSELS AND AIRCRAFTIt has been brought to the Bureau's at-

tention that in.some instances vesselsarrive during a week-end or holidaywithout prior notice to them of theirfuture fuel and other supply require-ments due to non-receipt of outboundorders. It Is necessary that supplies be-laden promptly and it is not always pas-sible to file a notice of lading with thecollectors prior to lading as now requiredby -§ 22.18 (c), Customs Regulations of1943. In order to permit the filing ofnotices of lading after the supplies havebeen placed on board, § 22.18 (c)" of theCustoms Regulations of 1943 (19 CFR22.18 (c)), as amended by T. D. 52894, ishereby further amended by adding thefollowing at the end thereof: "If thevessel or aircraft on which supplies areto be laden with benefit of drawback ar-rives at a time when the customhouse isnot open for business and the suppliesare required to be laden before the cus-tomhouse is tiext open for business, thecollector is hereby authorized to waivethe requirement of this paragraph thatthe notice of lading be filed beforelading, provided it is filed as soon there-after as practicable and the pertinentregulations are otherwise complied with."

'(See. 5, 52 Stat. 1080, see.3., 55 Stat. 602, see,64, 46 Stat. 759; 19 U. S. C. 1309, 1624)

tSEA.] FaA~m DQW,Commissioner o1 Customs.

Approved; April 4, 1952.Jom S. GRAHNA,

Acting Secretary of the TrezsuryJIF. R. Doe. 52-4096; Filed, Apr. 9, 1952;

8:49 a. m.]

TITLE 25-INDIANSChapter I-Buredu of Indian Affairs,

Department of the Interior

Subchapter L-rrgation Proiects; Operation and- - Maintenance

PART 130-OPERAmoN AND MAINTENANCECHARGES

FLATHEAD INDIAN IRRIGATION PROJECT,MONTANA

APRIL 3, 1952.On February 28, 1952, there was pub-

lished in the daily issue of the FEDERALREGISTER notice of intention to amend§§ 130.16 and 130.17 of Title 25, Code ofFederal Regulations, dealing with irriga-ble lands of the Flathead Indian Irriga-tion Project not subject to the jurisdic-tion of the several irrigation districts.Interested persons were thereby givenopportunity to participate in preparingthe amendments by submitting data orwritten arguments within 30 days fromthe date of publication of the notice. Noobjections were submitted. Accordingly§§ 130.16 and.130.17 are amended as fol-lows, to be effective for the season of1952 and thereafter until further order.

§ 130.16 Charges, Jocko Division. Anannual minimum charge of $1.90 peracre, for the season of 1952 and there-after until further notice, shall be madeagainst all assessable irrigable land inthe Jocko Division that is not includedin an Irrigation District organization,regardless of whether water is used.

The minimum charge when paid shallbe credited on the delivery of the prorata per acre share of the availablewater up to one and one-half acre-feetper acre for-the entire assessable areaof the farm unit, allotment or tract.Additional water, if available, will bedelivered at the rate of one dollar andtwenty-seven ents ($1.27) per acre-footor fraction thereof.

§ 130.17 Charges, Mission Valley andCamas Divisions. (a) An annual mini-mum charge of $2.16 per acre, for theseason 1952 and thereafter until furthernotice, shall be made against all as-sessable irrigable land in the MissionValley Division that is not included inan Irrigation District organization re-gardless of whether water is used.

The minimum charge when paid shallbe credited on the delivery of the prorata per acre share of the availablewater up to one and one-half acre feetper acre'for the entire assessable areaof the farm unit. allotment or tract.Additional water, if available, will be de-livered at the rate of one dollar andforty-four cents ($1.44) per acre foot orfraction thereof.

(b) An annual minimum charge of$2.48 per acre, for the season of 1952and thereafter until further notice, shallbe made against all assessable Irrigableland in the Camas Division that Is notIncluded in an Irrigation District or-ganization regardless of whether water isused.

The minimum charge when paid shallbe credited on the delivery of the prorata per acre share of the availablewater up to one and one-half acre feetper acre for the entire assessable areaof the farm unit, allotment or tract.Additional water, If available, will be de-livered at the rate of one dollar andsixty-five cents ($1.65) per acre foot orfrbctlon thereof.

The foregoing amendments of § § 130.16and 130.17 of the nondistrict operationand maintenance assessment rate orderfor the season of 1951 are to becomeeffective for the season of 1952 and con-tinue in effect until further notice.(Sees. 1, 3, 36 Stat. 270, 272, as amended; 26U. S. C. 385)

PAUL L. FICKINGER,Area Director,

[F. R. Doc. 52-4099; Filed, Apr. 9, 1052;8:50 a. m.]

PART 130-OPERATION AND MAINTENANCECHARGES

FORT PECX INDIAN IRRIGATION PROJECT,ONTANA

APRIL 3, 1952.On March 13, 1952, there was published

in the daily Issue of the FEDERAL REaIS-TER a notice of intention to modify§§ 130.38, 130.39 and 130.40 of Title 25,Code of Federal Regulations, dealingwith the lands served by the Fort PeckIndian Irrigation Project system. In-terested persons were thereby given anopportunity to participate In the prep-aration of this modification by submit-ting their views or arguments, In writ-ing, to the Area Director within 15 daysfrom the date of publication of saidnotice. No valid objections having beenreceived the said sections are herebyamended and the rates fixed, for the sea-son of 1952 and thereafter until furthernotice, as follows:

§ 130.38 Charges. (a) On the PoplarRiver Unit and that part of the BigPorcupine Unit not served by the WiotaPumping Plant, water, when availablewill be furnished upon approved appli-cation during each Irrigation season ata fiat rate of $2.25 per acre per annumfor all Irrigable lands Included in thefarm unit or allotment described In theapplication, whether water Is used ornot.

(b) On that part of the Big PorcupineUnit that is under the service area of theBig Porcupine or Wiota Pumping Plant,water, when available, will be furnishedto all Irrigable non-Indian lands and toall Indian owned allotments leased tonon-Indians, to which delivery of watercan be made, at a minimum rate of $2.25per acre per annum, whether water Isused or not. Payment of the minimumrate entitles the water user to the deliv-

3146

Thursday, April 10, 1952

ery of two acre-feet of water per acre ofirrigable land included in each farm unitor allotment. Any additional water de-livered shall be charged for at the rate of$1.15 per acre-foot or fraction thereoffor the first additional acre-foot, $1.50per acre-foot or fraction thereof for thesecond additional acre-foot and $1.75 peracre-foot or fraction thereof for waterdelivered in excess of the second addi-tional acre-foot.

(c) (1) For Indian land farmed bythe Indian owner or leased and farmedby Indians, under that bart of the BigPorcupine Unit that is within the servicearea of the Wiota Pumping Plant, water,when available, will be furnished at theminimum rate of $2.25 per acre perannum for the entire irrigable area in-cluded in the allotment whether waterIs used or not. Payment of the mini-mum rate entitles the Indian water-user to the delivery of two acre-feet ofwater per acre included in the allot-,meht. Any additional water deliveredshall be charged for at the rate of $1.15per acre-foot or fraction thereof for thefirst additional acre-foot, $1.50 per acre-foot or fraction thereof for the secondadditional acre-foot aid $1.75 per acre-foot or fraction thereof for water deliv-ered in excess of the second additionalacre-foot.

(2) For all irrigable lands situatedadjacent to and outside of that part ofthe Big Porcupine-Unit that is underthe service area of the Big PorcupineUnit or Wiota Pumping Plant, surplus-water, when available and not requiredfor irrigation of lands within the BigPorcupine Unit, will be furnished at theflat rate of $2.00 per acre-foot. Watermeasurement and delivery thereof willbe made at the project limits.

(d)- On the Frazer-Wolf Point Unit(comprising all irrigable lands suppliedwith water from the Little PorcupineReservoir and .the Fraser PumpingPlant) water, when available, will befurnished to all irrigable non-Indianlands;- and to all irrigable Indian-owned allotments leased to non-Indian(whether subjugated or not), to whichdelivery Of water can be made at aminimum rate of $2.25 per acre perannum whether water is used or not.Water, when available, will be furnished-at a like minimum rate for the frrikablearea of all subjugated Indiah-owned al-lotments to which delivery of water canbe made.- Payment of the minimum rateentitles the water-user .to the deliveryof two acre-feet of water per acre ofirrigable land included in each farmunit or allotment. Any additional waterdelivered shall be charged for at the rate,of $1.15 per acre-foot or fractionthereof for the first additional acre-foot,$1.50 .per acre-foot or fraction thereoffor the second additional acre-foot and$1.75 per acre-foot or fraction thereoffor water delivered in excess of the see-ond additional acre-foot.

(e) For all Indian lands farmed by theIndian owner, or leased and farmed byIndians in the Fraser-Wolf Point Unit,not subjugated but to which water canbe delivered, water when available, willbe furnished at the minimum rate of$2.25 pez acre per annum for the entire

No. 71-2

FEDERAL REGISTER

Irrigable area included In each allotmentwhether water Is used or not. Paymentof the minimum rate, entities the Indianwater user to the delivery of two acre-feet of water per irrigable acre includedin the allotment. Any additional waterdelivered shall be charged for at the rateof $1.15 per acre-foot or fraction thereoffor the first additional acre-foot, $1.50per acre-foot or fraction thereof Jor thesecond additional acre-foot and $1.75 peracre-foot or fraction thereof for waterdelivered in excess of the second addi-tional acre-foot.

§ 130.39 PaYment. (a) The flat rateand the minimum charges fixed in§ 130.38 shall become due and payableon April I of each calendar year. Thecharges for excess water delivered dur-ing any irrigation season shall be in-cluded in the bill for the ensuing seasonand shall be due and payable on April 1following the season in which the excesswater is delivered, except in the case ofexcess water deliveries to lessees of-In-dan lands where payment Is required Inadvance of the delivery of water.

(b) No water shall be delivered to anylands until all charges shall have beenpaid except in the case of Indian trustlands farmed by Indians to which watermay be delivered upon certification bythe superintendent of the reservationthat satisfactory written arrangementshave been made providing for the pay-ment of such charges from the proceedsof the crops or from proceedsreceivedin payment for labor performed by thewater user on the project works. Coplesof such certificates shall be forwarded tothe Commissioner of Indian Affairs andshall be subject to rejection or modifica-tion upon review. Any unpaid assess-•ments, in instances where the superin-tendent has certified the Indian owneris financially unable to pay the charges,shall be entered on the accounts as alien against the lana but without penaltyfor delinquency.(c) To all charges assessed against

lands in non-Indian ownership and In-dian lands under lease to non-Indianlessees which are not paid on or beforeJuly 1 of each year there shall be addeda penalty of one-half of 1 percent permonth or fraction thereof from the duedate, April 1, so long as the delinquencycontinues.

§ 130.40 Care of waste water. Allapplicants for water will be required toconstruct and maintain in -good orderand repair upon their lands such ditchesas may be necessary to catch and con.duct to some waste canal, ditch, lateral,or natural drainage channel, any wastewater flowing upon or from said lands.No waste water will be allowed to collectwithin 20 feet of any canal or lateralbelonging to the United States, norshall any waste water ditches be con-structed or maintained within 10 feet ofany canal or lateral of the United States,except at points of intersection or cross-ing, which shall be located only by orderand under the direction of the properofficers of the United States. No waterwill be furnished to-any applicant dur-ing such time as he fails to comply withthe provisions of this section.

3147

This amended order shall be effectivefor the season of 1952 and until furthernotice.(Se . 1, 3. 36 Stat 270. 272. as amended; 25U. S. C. 3)

PAi, I. FIcZENias,Area Director.

IP. R. Doc. 52-4100; Filed. Apr. 9. 1952;8:50 a. i.]

TITLE 26-INTERNAL REVENUEChapter I-Bureau of Internal Reve-

nue, Department of the Treasury -

Subchapter A-ncomao and Excess Pro~fs Taxes[Rep . 203, 11; T. 3:2 58921

PaT 19-Ico= TAx Urmr mm sISTEENAL RE MME CoDE

P.T 29-Ic 0nm TAx; TAx= Yz~rsBZrUon o AF= Dzcmx 31, 1941

WAR LOSSES

Regulations 103 (26 CPR Part 19) andRegulations 111 (26 CFR Part 29) arehereby amended by substituting "section23 (e" for "section 23 (e) (3)" in thefourth sentence of the second paragraphof § 19.127 (a)-1 of Regulations 103, asamended by Treasury Decision 5600, ap-proved February 2, 1948 (26 CPR 19.127(a)-), and In the sixth sentence of thesecond paragraph of § 29.127 (a)-I ofRegulations 111 (26 CFR 29.127 (a)-1).

The sentence in § 29-127 (a)-, BRu-lations 111, as amended by this Treasurydecision, will read as follows: "Unlesssuch loss is treated under section 117 (j)as.a loss from the sale or exchange ofa capital asset, such loss is deductible asan ordinary loss under the provisions ofsection 23 (M in the case of a corpora-tion and section 23 (e) in the case ofan individual."(53 Stat. 32; 26 U. S. C. 62)

Inasmuch as the purpose of this Treas-ary decision Is merely to correct.a tech-nical error, it is found that it isunnecessary to lssue this Treasury de-cision under section 4 (a) of the Ad-ministrative Procedure Act, approvedJune 11, 1946, or subject to the effec-tive date limitation of section 4 (c) ofsaid act.

[sMiL] JUsTn F. WMEr=,Acting Commissioner

of Internal Revenue.

Approved: April 4, 1952.Tiolns J. LyNcir,

Acting Secretary of the Treasury.[P. R. Dcc. 52-497; Flled, Apr. 9, 1952;

8:50 a. in.]

[lep. 111; T. D. 58931

PAnT 29--Iweo= TAx; TAx ABL YmsBEn;mnG Arm Dzcri 31, 1941

1sc=MMlo05 AZIESIETTSOn December 13, 1951. there was Pub-

lished In the Ftm=AL IRarTza (16 F. F.12567) a notice of proposed rule makingregarding the amendment of Regula-tions 111 (26 CFR. Part 29) to conform .to the provisions of section 213 (relat-

RULES AND REGULATIONS

Ing to cgpital gains of nonresident allenindividuals), section 220 (relating to em-ployees of United States working inpossessions of the United States or inthe Canal Zone), and section 221 (relat-ing to residents of Puerto Rico) of theRevenue Act of 1950 (Pub. Law 814, 81stCong.), approved September 23, 1950, -as amended by act of July 23, 1951'(Pub.Law 82, 82d Cong.). No objection tothe rules proposed having been received,the amendments set forth below arehereby adopted.

PARAGRAPH 1. Section 29.4-1, psamended by Treasury Decision 5425, ap-proved December 29, 1944, is furtheramended by striking out "219" and in-serting in lieu thereof the following:61221".

PAR. 2. Section 29.11-2 is amended asfollows:

(A) By inserting immediately preced-ing the last sentence the following: "Anonresident alien individual who is abona fide resident of Puerto Rico duringthe entire taxable year is, in general,liable to the tax in the same manner asa resident alien individual. See sections116 (1) and 220."

(B) By striking out of the last sen-tence "219" and inserting in lieu thereof-the following: "221".

PAR. 3. Section 29.23 (e)-I is amendedby striking out of the last sentence ofthe first paragraph "section 213" andinserting In lieu thereof the following:"sections 211, 213, and 220".

PAR. 4. Section 29.23 (o)-1, as.amended by Treasury Decision 5425, isfurther amended by inserting in thefourth sentence of paragraph (c), im-mediately after "213 (c) ':, the following:

220,".PAR. 5. Section '29.25-3, as amended

by Treasury Decision 5687, approvedFebruary 16, 1949, is further amendedby adding at the end of paragraph (d)-thereof the following new subparagraph:

(7) Alien resident of Puerto Rico. Fortaxable years beginning on or after Jan-uary 1, 1951, a nonresident alien indi-vidual who is a bona fide resident ofPuerto Rico during the entire taxableyear and subject to tax under sections11 and 12 Is allowed as credits against netincome the exemptions specified In sec-tion 25 (b), even though as to the UnitedStates such individual is a nonresidentalien. See, however, section 51 (b) (2)and regulations thereunder which pro-vide that a joint return may not be madeif either the husband or wife at any timeduring the taxable-year is a nonresidentalien.

PAR. 6. Section 29.51-1, as amendedby Treasury Decision 5687, is furtheramended by striking out of paragraph(a) (4) thereof "and every* individualresiding within the United States thoughnot a citizen thereof," and inserting inlieu thereof the following: "by every in-dividual Tesiding within the UnitedStates though not a citizen thereof, and,in the case of taxable years beginning onor after January 1, 1951, by every alienindividual who is a bona fide resident ofPuerto Rico during the entire taxableyear,".

PAR. 7. Section 29.53-1, as amended byTreasury Decision 5861, approved Oeto-

ber 18, 1951, is further amended byinserting in paragraph (a), immediatelyafter "nonresident alien individual", thefollowing: "(except, in the case of a tax.able year beginning on or after January1, 1951, a bona fide residit of PuertoRico during the entire taiable year) ".

PAR. 8. There is inserted immediatelypreceding § 29.58-1 the following:

SEC. 221. RESIDENTS OF PUERTO RICO (REvE-INE ACT OF 1950, A-PROVED SEPTEMBER 23,

* * * " *

(g) Declaration of estiniatef tax. Section58 (a) (relating to declaration of estimatedtax by individuals is hereby amended byinserting after "Chapter 9 s not made appli-cable" the following: ", but including everyalien individual who is a resident of PuertoRico during the entire taxable year".

* * * - *

(1c) Effectivp date. The amendmentsmade by this section shall be applicablewith respect to taxable-years beginning afterDecember 31, 1950, * *

PAR. 9. Section 29.58-2, as amended byTreasury Decision 5687 is furtheramended as follows:

(A) By striking out of the first para-graph (b) (1) thereof "and (iii) everynonresident alien who is a resident ofCanada or Mexico and-who has wagessubject to withholding at the sourceunder section 1622," and inserting in lieuthereof the following: "(iii) every non-resident alien who is a resident of Can-ada, Mexico, or, in the case of taxableyears beginning on or after January 1,1951, Puerto Rico and who has wagessubject to withholding at the source un-der section 1622, and (iv), in the case oftaxable years beginning on or after Jan-uary 1, 1951, -every nonresident alien-who has been, or expects to be, a resi-dent of Puerto Rico during the entiretaxable year,".

(B) By revising so much of the firstsentence of the fourth paragraph of- (b)(1) (iii) (b) thereof as precedes "andwho has wages subject to withholding"to read as follows:. "A nonresident allenwho is (1) a resident of Canada or Mex-

,ico who enters into.and leaves the-UnitedStates at frequent intervals, or (2), inthe case of taxable years beginning onor after January 1, 1951, a resident ofPuerto Rico,".

(C) By striking' out.of the fourthparagraph of (b) (1) (ii) (b) thereofthe following: "In the case of a nonresi-dent alien gross income means only grossincome from sources within the UnitedStates. Section 212 (a)." and insertingin lieu thereof the following: "In thecase of a nonresident allen (other than,for taxable years beginning on or afterJanuary 1, 1951, an alien resident ofPuerto Rico during the entire taxableyear) gross income means only gross in-come from sources within the UnitedStates. -Sections 212 (a) and 220."

(D) By inserting immediately afterthe fourth paragraph of (b) (1) (iR) (b)thereof the following iiew undesignatedparagraph:

A- nonresident alien who has been, orexpects to be, a resident of Puerto Ricoduring the entire taxable year is re-quired, in the case of taxable years be-ginning on or after January 1, 1951, tofile a declaration of estimated tax if his

gross income meets the requirements ofsection 58 (a). For the purpose of suchdeclaration, gross Income means grossincome from all sources, other thansources within Puerto Rico, but Includ-ing amounts received for services per-formed as an employee of the UnitedStates or any agency thereof. Sections116 (1) and 220.

PAR. 10. Section 29.58-3, as amendedby Treasury Decision 5855, approvedSeptember 13, 1951, Is further amendedby inserting in the second sentence ofparagrhph (a) (4) thereof, Immediatelyafter "the United States", the following:"(including, on or after January 1, 1951,Puerto Rico as if a part of the Untc&States) ".

PAR. 11. Section 29.58-4, as amendedby Treasury Decision 5687, is furtheramended by Inserting at the end of thethird sentence of paragraph (a), Imme-diately after the words "a nonresidentalien", the following: ", Including suchan alien who Is a bona fide resident ofPuerto Rico during the entire taxableyear".

PAR. 12. Section 29.58-8, as added byTreasury Decision 5305, approved No-vember 12, 1943, and amended by Treas-ury Decision 5419, approved November25, 1944, Is further amended by strikingout of paragraph (b) "and Hawaii on'the 15th day" and inserting in lieuthereof the following: ", Hawaii, and (inthe case of taxable years beginning onor after January 1, 1951) Puerto Rico onthe 15th day".

PAR. 13. There Is inserted Immedi-ately preceding § 29.116-1 the following:

SEc. 221. REsIDNrs OF PUETq RaIcO (REVV-NOI ACT OF 1950, APPROVED SEPTEMDER 2311950).

* ,* * * a

(c) Taxation of income of residents ofPuerto Rico. Section 116 (relating to ex-clusions from gross Income) Is herebyamended by adding at the end thereof thefollowing new subsection:

(1) Income from sources within PuertoRico-(1) Resident of Puerto Rico for entiretaxable year. In the case of an Individualwhois a bona fide resident of Puerto Ricoduring the entire taxable year, indome de-rived from sources within Puerto Rico (ex-cept amounts received for services performedas an employeo.of the United States or anyagency thereof); but such Individual shallnot be allowed as a deduction from his grossincome any deductions properly allocable toor chargeable against amounts excluded fromgross Income under this paragraph.

(2) Taxable year of change of residencefrom Puerto Rico. In the case of an Individ-ual citizen of the United States, who hasbeen a bona fide resident of Puerto Rico fora period of at least two years before the dateon which he changes his residence fromPuerto Rico, Income derived from sourcestherein (except amounts received for servicesperformed as an employee of the UnitedStates or any agency thereof) which Is at-tributable to that part -of such period ofPuerto Rican residence before such date;but such Individual shall not be allowed isa deduction from his gross ncome' any de'ductions properly allocable to or chargeableagainst amounts excluded from gross Incomeunder this paragraph.

(k) Effective date. The amendmentsmarie by this section shall be applicable withrespect to taxable years beginning after De-cember 31, 1950, * * *.

Thursday, April 10, 1952

PAR. 14. There is inserted immediatelyafter § 29.116-5, as added by TreasuryDecision 5555, approved March 24, 1947,the following new section:

§ 29.116-6 Exclusion of certain incomefrom sources within Puerto Rico. (a)Fof taxable years beginning on or after

.January 1, 1951, there is excluded fromgross-income in the case of an individual(whether a citizen of the United.Statesor an alien) who is a bona fide resident

- of Puerto Rico during the efitire taxableyear income derived from sources withinPuerto Rico, except such income as con-sists of amounts received for servicesperformed as-an employee of the UnitedStates or-any agency thereof. Whetherthe individual is a bona fide resident ofPuerto Rico shall lie determined in gen-eral by applying to the facts and cir-cumstances in each *case the principlesof §§ 29.211-2, 29.211-3, 29.211-4, and29-.211-5, relating to what constitutesresidence or nonresidence, as the casemay be, in the United States in the caseof an alien individual. Once bona fideresidence in Puerto Rico has been estab-lished, temporary absence therefrom in

-the United States or elsewhere on vaca-tion: or business trips will not necessarilydeprive an individual 'of his status as abona fide resideit of Puerto Rico. Anindividual taking up residence in PuertoAico during the course of the taxable

year is not entitled for such year to theexclusion provided in section 116 (1).

(b) For any taxable year beginning onor after January 1,1951, there is excludedfrom gross income, in the case of anindividual citizen of the United Stateswho during such taxable year changes hisresidence from Puerto Rico to a placeoutside Puerto Rico after having beena bona fide resident of Puerto Rico fora period of at least two years Immediatelypreceding the date of such change inresidence, income derived from sourceswithin Puerto Rico which is attributableto that part of such period of PuertoRican residence which precedes the dateof such change in residence, except suchincome as consists of amounts receivedfor services performed as an employee

* of the United States or any agencythereof.

(c) In any case in which any amountotherwise constituting gross incobme isexcluded from gross income under theprovisions of section 116 (1), there shall-not be allowed as a deduction from grossincome any items of expenses or lossesor other deductions properly allocableto, or chargeable against, the amountsso excluded from gross income. The ap-portionment and allocation of suchexpenses, losses, or deductions as be-twedn incbme from sources withinPuerto Rico and income from othersources shall be determined in accord-ance with Ihe principles of section 119and the regulations -thereunder.

PAP. 15. Section 29.117-1, as amendedby Treasury Decision 5425, is furtheramended by inserting at the end thereofthe following new paragraph:

-In the case of nonresident alien Indi-viduals not engaged in trade or businesswithin the United States, see section 211and the regulations thereunder for the

determination of the net mount ofcapital gains subject to tax with respectto taxable years beginning on or afterJanuary 1, 1950.

PAR. 16. Section 29.117-2, as amendedby Treasury Decision 5425, is furtheramended as follows:

(A) By inserting Immediately pre-ceding the second sentence, which com-mences with the words "The percentageof the gain", of paragraph (a) thereofthe following: "(In the case of nonresi-dent alien individuals not engaged In

-trade or business within the UnitedStates; see section 211 and the regula-tions thereunder for the determinationof the net ,amount of capital gains sub-ject to tax with respect to taxable yearsbeginning on or after January 1, 1950.)"

(B) By inserting at the end of the firstparagraph of (c) thereof the followingnew sentence: 'In the case of nonresidentallen individuals not engaged in trade orbusiness within the United States, seesection 211 and the regulations there-under.". PAR. 17. Section 29.119-1 Is amendedas follows:

(A) By inserting in the first sentenceof the introductory paragraph, imme-diately after "Nonresident alien indivld-uals", the following: "(except, in thecase of a taxable year beginning on orafter January 1. 1951, allen individualswho are bona fide residents of PuertoRico during the entire taxable year) ".

(3)- By inserting in the introductoryparagraph, immediatelrafter "212 (a) ,",the following: "220,".

PAn. 18. There is inserted Immediatelypreceding § 29.131-1 the following:

S=c. 221. REmzurs op Pumao mao U-vE-Nos Aer op lose, ArrunorEn am190).

(h) Foreign tax credit. Paagraph3 (2)and (3) of section 131 (a) .(relating to allow-ance of credit) are hereby amended to readas follows:

(2) Resident of the United States orPuerto Rico. In the ca9 of a resident ofthe United States and In the cace of anIndividual who is a bona fide resident ofPuerto Rico during the entire taxable year,the amount of any such taxes paid or ac-crued during the taxable year to any po ese-slon of the United States; and

(3) Alien resident of the United Statesor Puerto Rico. In the case of an allen rel-dent of the United States and In the care ofan allen Individual who Is a bona fide resi-dent of Puerto Rico during the entire tax-able year, the amount of any such taxespaid or accrued during the taxable year toany foreign country, if the foreign countryof which such allen res dent Is a cltienor subject, In imposing such taxes, allows asimilar credit to citizens of the UnitedStates residing in sMch country; and

(k) Zifectira date. The Amendmentsmade by this cection sall be applicable withrespect to taxable years beginning afterDecember 31, 1950, .

PAR. 19. Section 29.131-1, as amendedby Treasury Decision 5855 is furtheramended by revising so much of para-graph (b) as precedes "the credit Is asfollows:" to read as follows: "In thecase of an alien resident of the UnitedStates and, with respect to taxable yearsbeginning on or after January 1, 1951,

In the case of an alien individual who isa bona fide resident of Puerto Rico dur-ing the entire taxable year, who choosesto claim a credit for such taxes, thebasis or,.

PAs. 19a. Section 29.131-3 is amendedby striking out of the second sentenceof paragraph (a) "sworn to or afTnred."and inserting in lieu thereof the follow-ing: "verified by a written declarationthat It Is made under the penalties ofperjury.'.

PA. 20. There is inserted imme-diately preceding § 29.143-1 the follow-Ing:

S. 221. 1xsmzs orP p 'o mco eMcv-lis ACr o7 1950, APPZOVM S=T== 23,1050).

(e) Withholding on alien residents ofPuerto Rico. Section 143 (a) (1) (relat-Ing to withholding of tax at source on tax-free covenant bonds) and E-ction 143 (b)(relating to withholding of tax at source andividends, interest, etc., paid to nonresidentaliens) are each amended by adding at theend thereof the following: "As used in tbissubsection the term 'nonresident alien in-dividual' Includes an alien resident of PuertoRico."

(k) Effectire date. The- amendmentsmade by this section shall be applicable withrespect to taxable years beginning after De-cember 31, 1950, 0 0 0.

PAR. 21. Section 29.143-1, as amendedby Treasury Decision 5709, approvedJune 27, 1949, is further amended by in-serting after the first sentence ofsubparagraph (13) of paragraph (a)thereof the following new sentence:"For the purpose of section 143 (a) (1)and (b) the term 'nonresfident alien in-dividual' includes an alien resident ofPuerto Rico."

PsA. 22. Section 29.147-3, as amendedby Treasury Decision 5687, is furtheramended by inserting Immediately pre-ceding the last paragraph the following:

(13) Payments made on or after Jan-uary 1, 1951, to employees for servicesperformed in Puerto Rico.

P n. 23. Section 29.147-6 is amendedby Inserting theikein, immediately after"the United States", the following: "(in-cluding, on or after January 1, 1951,Puerto Rico as if a part of the UnitedStates)".

PAn. 24. There is inserted immediatelypreceding § 29.211-1 the following:

SX-a. 213. Csza=&L G&=s o. No, T'sTho'-.TALMTn-lIVDUALS (MaErarn AC= o" i9oa, Ap-Xuo7vm sEmZUM= 23, 1950).

(a) Honresident alien individuals tempao-rarily in the United States. Section 211 (a)(1) (B) (relating to tax on nonresident alienindividuals not engaged n trade or businessWithin the United States) is hereby amendedto read as follows:

(B) Capital gains of -al ens temporarlyPresent in the United States. In the caceof a nonresident allen individual not engagedn trade or business in the United States,there shall be levied, collected, and paid foreach taxable year, in addition to the taxImpoced by subparagraph (A)-

(1) If he Is present in the United Statesfor a period or periods agegating les3 thanninety days during such taxable year-a taxof 30 per centum of the amout by which higains. derived from sources within the UnitedStates, from vaies or exchanges of capital

FEDERAL REGISTER 3149

3150

assets effected during his presence in theUnited States exceed his losses, allocable tosources within the United States, from suchsales or exchanges effected during suchpresence; or

(11) If he Is present In the United Statesfor a-period or periods aggregating ninetydays or more during such taxable year-atax of 30 per centum of the amount bywhich his gains, derived from sources withinthe United States, from-sales or exchanges ofcapital assets effected at any time duringsuch year exceed his -losses, allocable tosources within the United States, from such -sales or exchanges effected at any time dur-ing such year.

For the purposes of this subparagraph, gainsand losses shall be taken into account onlyif, and to the extent that, they would berecognized and taken into account if suchIndividual were engaged in trade or businessin the United States, except that such gainsand losses shall be computed without regardto the provisiops of section 117 (b) and suchlosses shall be determined without the .bene-fits of the capital loss carry-over providedIn section 117 (e).

(C) Cross reference. For inclusion incomputation of tax of amount specified inshareholder's consent, see section 28.

(b) No United States trade or business andincome of more than $15,400.

(1) Section 211 (a) (2) is hereby amendedto read as follows:

(2) Aggregate more than $15,400. Thetaxes Imposed by paragraph (1) shall notapply to any individual If during the tax-able year the sum of-

(A) The aggregate amount, received from'the sources specified in paragraph (1) (A),plus

(B) The amount, determined in'accord-ance with the provisions of paragraph (1)(B), by which gains from sales or exchangesof capital assets exceed losses from such salesor exchanges,

Is more than $15,400. o

(2) So much of section 211 (c) as precedesparagraph (4) thereof is hereby amended toread as follows:

(cl No United States business or office andgross income of more than $15,400. A non-tresident alien Individual not engaged in trade-or business within the United States shallbe taxable without regard to the provisionsof subsection (a) (1) If during the taxableyear the sum of the aggregate amount re-ceived from the sources specified in subsec-tion (a) (1) (A), plus the amount (deter-mined in accordance with the provisions ofsubsection (a) (1) (B)) by which gains fromsales or exchanges of capital assets exceedlosses from such sales 6r exchanges, is morethan $15,400, except that-

(1) The gross Income shall include onlyIncome from the sources, specified In sub-sectibn (a) (1) (A) plus any gain (to the

'extent provided In section 117) from a.saleor exchange of a capital asset if such gainwould be taken into account were the taxbeing determined under subsection (a) (1)(B);

(2) The deductions (other than the so-called "charitable deduction" provided Insection 213 (c)) shall, be allowed only if andto the extent that they are properly allocableto the gross Income from the sources speci-fied in subsection (a) (1) (A), except thatany loss from the sale or exchange of acapital asset shall be allowed (to the extentprovided In section 117 without the benefitof the capital loss carry-over provided Insection 117 (e)) if such loss would be takenInto account were the tax being determinedunder subsection (a) (1) (B);

(3) The tax imposed by this chapter (un-der sections 11 and 12, orunder section 117(c)) shall, in no case, be less than 30 percentum of the -um of-.

RULES AND REGULATIONS

(A) The aggregate amount received fromthe sources specified in subsection- (a) (1),(A), plus

(B) The amount, determined in accord-ance with the provisions of subsection (a)(1) (B), by which gains from sales or ex-changes of capital ass6ts exceed losses fromsuch sales or exchanges; and.

(d) Effective date. The amendmentsmade by this section shall be applicable withrespect to taxable years beginning afterDecember 31, 1949.

Szc. 214. TREATY OrBICATIoNs (REVEN=r ACTOP, 1950, APPROVED SEPTEMBER 23, 1950).

No amendments made by this Act shallapply in any case where Its application wouldbe contrary to any treaty obligation of theUnited States.

PAR. 25.' Section 29.211-7, as amendedby Treasury Decision 5709, is furtheramended as follows: I

(A) By revising so much thereof asprecedes paragraph (a) thereof to readas follows:

§ 29.211-7 Taxation of nonresidentalien individuals. For the purposes ofthis- section and §§ 29.212-1, 29.213-1,29.214-1, 29.2M5-1, and 29.217-2, nonresi-dent alien individuals are divided intothree classes: (1) Noniresident alien in-dividuals not engaged in trade or busi-ness within the United States at anytime during the taxable year and deriv-ing in such taxable year an amount ofnot more than $15,400 in the aggregatewhich is the gross amount of fixed or de-terminable annual or periodical incomefrom sources within the United Statesplus, in the case of taxable years begin-ning on or after January 1, 1950, theexcess of capital gains over capital lo~ses,deternined in accordance with para-graph (a) (2) of thisr section, fromsources within the United States; (2)nonresident allen individuals not en-gaged in trade or business' within theUnited States at any time during thetaxable year-and deriving in such taxableyear an amount of more than $15,400 inthe aggregate which is the gross amountof fixed, or determinable annual orperiodical income from sources withinthe United States plus, in the case oftaxable years beginning on or after Jan-uary 1, 1950, the excess of capital gainsover capital losses, determined in ac-cordance with paragraph (a) (2) of thissection, from sources within the UnitedStates; and (3) ndnresident alien in-dividuals who at any time during thetaxable year are engaged in trade orbusiness in the United States. (But, inthe case of taxable years beginning on orafter January 1, 1951, see § 29.220-1 withrespect to alien individuals who are bonafide residents of Puerto Ric6 during theentire taxable year.)

(B) By revising so much of paragraph(a) thereof as precedes the-second sen-tence of subparagraph (1) to read asfollows:

(a) No United States business; _fen-eral rule-(1) -Fired or determinableannual or periodical income. A nonresi-dent- allen individual within class (1),referred to- in the preceding paragraph,is liable to the tax upon the aggregateamount received from sources within theUnited -States; determined under the

provisions of section 119, which consistsof fixed or determinable annual orperiodical gains, profits, and income and,in the case of taxable yea~s beginning onor after January 1, 1950, the excess ofcapital gains over capital losses, deter-mined in accordance with subparagraph(2) of this paragraph.

(C) By inserting after the first son-tence-of paragraph (a) (2) thereof thefollowing: "In the case of taxable yearsbeginning on or after January 1, 1950,the excess of capital gains over capitallosses, determined In accordance withthis subparagraph, Is also subject to taxand is to be aggregated with such fixedor determinable annual or pelodicalincome in determining such $15,400."

(D) By inserting immediately preced-ing paragraph (b) the following newsubparagraph:

(3) Capital gains and losses: In thecase of taxable years beginning on orafter January 1, 1960, a nonresident'alien individual within class (1), re-ferred to in the Introductory paragraphof this section, Is liable to a tax of 30percent upon the excess of capital gainsderived from sources within the UnitedStates over capital losses allocable tosuch sources, determined under the pro-visions of section 119 and In accordancewith the provisions of this subparagraph,This tax is in addition to the tax Im-posed, as indicated In subparagraph (1)of this paragraph, upon the grossamount of fixed or determinable annual

- or periodical Income derived fromsources within the United States by suchnonresident alien Individual. However,section 211 (a) (1) (B) and this sub-paragraph do not apply to any capitalgain which Is exempt from tax under atreaty or convention to which the UnitedStates is a party.

If he has been present in the UnitedStates for a period or periods aggregat-ing less than 90 days during the taxableyear, a nonresident aliein Individual notengaged in trade or business within theUnited States at any time during such-taxable yeai is liable to a tax of 30 per-cent upon the amount by which hisgains, derived from sources within theUnited States, from sales or exchangesof capital assets effected during his pres-ence in the United States exceed hislosses, allocable to sources within theUnited States, from such sales or ex-changes effected during such presence,Gains or losses from sales or exchangesof capital assets effected during suchtaxable year at times other than duringsuch presence in the United States arenot to be taken into account.

If he has been present in the UnitedStates for a period or periods aggregat-ing 90 days or more during the taxableyear, a nonresident alien individual notengaged In trade or businesd within theUnited States at any time during suchtaxable year is liable to a tax of 30 per-cent upon the amount by which his gains,derived from sources within the UnitedStates, from sales or exchanges of capi-tal assets effected at any time duringsuch year exceed his losses, allocable tosources within the United States, fromsuch sales or exchanges effected at anytime during such year. Gains or losses

q

Thursday, April 10, 1952

from sales or exchanges effected at anytime during such taxable year are to betaken into account even though suchalien individual is not present in theUnited States at the time such sales orexchanges are effected.

In computing the total period of pres-ence in the United States for a taxableyear, all separate periods of presence inthe United States during the taxableyear are to be aggregated.

For the purpose of the computation ofthe excess of capital gains over capitallosses subject to tax, gains and lossesshall be taken into account onl§ If, andto the extent that, they would be recog-nized and taken into account if the non-resident alien individual were engaged intrade or business within the UnitedStates, except that such gains or lossesshall be computed without regard to theprovisions of section 117 (b) and thatsuch losses shall be determined withoutthe benefit of the provision under sec-tion 117 (e) for the capital loss carry-over. The excess, if any, of capitallosses over capital gains in such compu-tation is of no tax significance, sincesuch losses shall be allowed only to theextent of such gains.

Where sales or exchanges of capitalassets (effected either during the periodor periods of presence in the UnitedStates when such period or periods ag-gregate less than 90 days during thetaxable year, or at any time during thetaxable year when such period or periodsaggregate 90 days or more during suchtaxabhle year) result only in capitallosses allocable to United States sources,thbre being no gains derived from UnitedStates sources from such sales or ex-changes, such losses shall not to any ex-tent be allowed as a deduction from thefixed or determinable annual or period-ical incomfe derived by such nonresidentalien individual from United Statessources during such taxable year.

CE) By revising the first three sen-tences of paragraph (b) to read asfollows:

(b) No-United States business; aggre-gate more than $15,400. A nonresidentalien individual within class (2), re-ferred to in the introductory paragraphof this section, is, in accordance with theprovisions of section 211 (c), subject totax under sections 11 and 12, or in thealternative under section 117 (c), uponthe amount which is the sum of the ag-gregate of his fixed or determinable an-nual or periodical income specified insection 211 "(a) (1) (A), determinedunder the provisions of section 119, plus,in the case of taxable years beginning on-or after January 1, 1950, any gain (tothe extent provided in section 117) froma sale or exchange of a capital asset ifsuch gain would be taken into accountwere the tax being determined undersection 211 (a) (1) (B) and under para-graph (a) (2) of this section, minus (1)'the deductions properly allocable to suchfixed or determinable annual or perlodi-cal income, (2) the so-called "charitablecontributions" deduction provided insection 213 (c), and (3), in the case oftaxable years beginning on or after Jan-uary 1, 1950, any loss (to the extent pro-vided in section 117 without the benefit

FEDERAL REGISTER

of the capital loss carry-over providedin section 117 (e)) from the sale or'ex-change of a capital asset if such losswould be taken into account were the taxbeing determined under section 211 (a)(1) (B) and under paragraph (a) (2) ofthis section. Such nonresident alien isentitled to the credits against net incomeallowable to an individual by section 25,subject to the limitations provided insection 214. However, the tax thus com-puted under sections 11 and 12, or inthe alternative under section 117 (c),shall in no case be less than 30 percent(271A percent prior to October 31, 1942,in the case of fixed or determinable an-nual or periodical income) of theamount which is the sum of the aggre-gate'of the gross amount