attendance elsewhere than in the city of Washington, shall be paid upon the written and itemized certificate of such judges, clerk, marshal, deputy clerk, and deputy marshal by the marshal of the court and shall be allowed to him in the settlement of his accounts with the United States. The United States marshals for the several districts outside of the city of Washington in which the court may hold its sessions shall provide, under the direction and with the approval of the Attorney General, such rooms in the public buildings of the United States as may be necessary for the use of the court; but in case proper rooms cannot be procured in said public buildings, said marshals, with the approval of the Attorney General, and subject to such rules and regulations as he may promulgate, may then lease from time to time other necessary rooms for the court.

JURISDICTION

SEC. 303. The Railroad Reorganization Court shall have the jurisdiction possessed by the district courts of the United States and of the judges thereof, (1) under and with respect to section 77 of the Bankruptcy Act, as amended, and (2) in and with respect to equity receiverships of corporations subject to the provisions of the aforesaid section 77. The jurisdiction of the court shall be exclusive and shall extend to any property involved wherever located.

POWERS OF COURT

SEC. 304. In all proceedings within its jurisdiction the court shall have and may exercise any and all of the powers of a district court of the United States and of the judges thereof, so far as may be appropriate to the effective exercise of the jurisdiction herein conferred. The court may issue all writs and processes appropriate to the full exercise of its jurisdiction and powers and may prescribe the form thereof. It may also from time to time establish such rules and regulations concerning pleadings, practice, or procedure in matters within its jurisdiction as to it may seem wise and proper. Its orders, writs, and process may run, be served, and be returnable anywhere in the United States; and the marshal and deputy marshal of the court, and also the United States marshals in the several districts of the United States shall have like power and be under like duties to act for and in behalf of the court as pertain to United States marshals and deputy marshals generally when acting under like conditions concerning suits, proceedings, or matters in the district courts of the United States.

TRANSFER OF PENDING CASES

SEC. 305. Until the opening of the Railroad Reorganization Court all proceedings of which the court is herein given exclusive jurisdiction may be brought and continued in the same courts and conducted in like manner and with like effect as heretofore provided by law; and in the event of any appealable judgment or decree in or with respect to such proceeding before the opening of said Railroad Reorganization Court, an appeal may be taken in like manner and with like effect as heretofore provided by law. Upon the opening of the court any proceeding within the jurisdiction of the court, which may be pending in any other court at that time, shall thereupon and thereby be transferred without further order to the Railroad Reorganization Court. All previous action taken in such transferred proceeding shall stand, notwithstanding the transfer, subject to the same control over them by the Railroad Reorganization Court and to the same right of subsequent action as if the transferred proceeding had been originally begun in the Railroad Reorganization Court. The clerk of the court from which any proceeding is so transferred to the Railroad Reorganization Court shall transmit to and file in the Railroad Reorganization Court the originals of all papers filed in such proceeding and a certified transcript of all record entries in the proceeding up to the time of transfer. The Railroad Reorganization Court shall have exclusive jurisdiction to issue such orders and to promulgate such rules (a) as it may deem to be necessary or desirable to give effect to the terms of this section, and (b) as it may deem to be fair and equitable to resolve any questions that may arise under this section but that may not be expressly disposed of by the terms thereof.

FUNCTIONS OF DISTRICT COURTS

SEC. 306. It is the purpose of this Act to repose in the Railroad Reorganization Court final authority in connection with all matters applying to the receivership, trusteeship, and reorganization of railroad corporations, but such court is author

ized, in its discretion, to impose upon an appropriate United States district court such duties in connection with the actual operations of the properties in the course of receivership, trusteeship, or reorganization of such railroads as to the Railroad Reorganization Court may be considered necessary and proper for prompt and expeditious handling.

PRACTICE AND PROCEDURE

SEC. 307. Except as may be otherwise provided herein or by rule of the court, the practice and procedure in the court shall conform as nearly as may be to that in comparable proceedings in a district court of the United States. The court may by rule prescribe the method of taking evidence in proceedings in said court, and may prescribe that the evidence be taken before a single judge of the court with power to rule upon the admission of evidence.

APPEALS TO SUPREME COURT

SEC. 308. At any time within thirty days after the entry of a final judgment, decree, or order by the court any person aggrieved may take an appeal on questions of law directly to the Supreme Court of the United States by giving notice thereof. In the event of such an appeal the record shall be made up and the case docketed in the Supreme Court of the United States within thirty days from the time notice thereof was given. Appeals hereunder shall be heard by the Supreme Court of the United States at the earliest possible time and shall take precedence over all other matters not of a like character or not involving the constitutionality of an Act of Congress. The taking of an appeal hereunder shall not operate as a stay of the judgment, decree, or order, unless specifically ordered by the court, or by the Supreme Court of the United States or a Justice thereof, and then only upon the giving of a bond by the appellant in such form and amount as the court, the Supreme Court of the United States, or the Justice thereof, as the case may be, may require. Notwithstanding any other provision of law, the review of judgments, decrees, or orders of the court shall be governed exclusively by the provisions of this section.

AMENDMENTS TO SECTION 77 OF BANKRUPTCY ACT

SEC. 309. Section 77 of the Bankruptcy Act, as amended, is hereby amended(a) by striking out the second sentence of subsection (a) thereof and substituting in lieu thereof "The petition shall be filed with the Railroad Reorganization Court, and a copy of the petition shall at the same time be filed with the Interstate Commerce Commission (hereinafter called 'the Commission').";

(b) by striking out the seventh sentence of subsection (a) thereof and substituting in lieu thereof "The Supreme Court of the United States shall promulgate rules relating to the service of process and any other rules which it may deem advisable.";

(c) by striking from subdivision (5) of the first paragraph of subsection (b) thereof "to another corporation or corporations, the merger or consolidation of the debtor with another corporation or corporations," and substituting in lieu thereof "to, or the merger or consolidation of the debtor with, another corporation or corporations (whether or not a successor corporation or corporations, or whether or not a corporation or corporations which is a debtor in proceedings under section 77, as amended)";

(d) by striking from the second sentence of the third paragraph of subsection (b) thereof the word "unsecured";

(e) by striking out subdivision (1) of subsection (c) thereof and substituting in lieu thereof "(1) the court shall forthwith appoint a trustee or trustees of the debtor's property.";

(f) by striking out the first three sentences of subdivision (2) of subsection (c) thereof;

(g) by striking out the second sentence of subdivision (12) of subsection (c) thereof;

(h) by striking from the first sentence of subdivision (13) of subsection (c) thereof "who shall have been previously designated to act as special masters in any proceedings under this section by order of the circuit court of appeals" and substituting in lieu thereof "whom it shall appoint";

130981-39-pt. 1- -2

(i) by striking out the second sentence of subdivision (13) of subsection (c) thereof;

(j) by striking out the last sentence of subsection (d) thereof;

(k) by striking out the last three paragraphs of subsection (e) thereof and substituting in lieu thereof the following:

"If the court shall not approve the plan it shall, after notice and opportunity for hearing, indicate such modifications therein as it may deem necessary to enable said plan to comply with clauses (1) to (3), inclusive, of the preceding paragraph of this subsection (e), and shall approve the plan as so modified. "When the court shall approve the plan, as certified or as modified, it shall file an opinion stating its conclusions and reasons therefor, and enter an order to that effect which shall also provide for the submission of said plan to the creditors of each class whose claims have been filed and allowed in accordance with the requirements of subsection (c) hereof, and to the stockholders of each class, and/or to the committees or other representatives thereof, for acceptance or rejection within such time as the court shall specify, together with the report or reports of the Commission thereon or such a summarization thereof as the court may approved, and the opinion and order of the court: Provided, That submission to any class of stockholders shall not be necessary if the court shall have determined (a) that at the time of such determination the corporation is insolvent, or that at the time of such determination the equity of such class of stockholders has no value, or that the plan provides for the payment in cash to such class of stockholders of an amount not less than the value of their equity, if any, or (b) that the interests of such class of stockholders will not be adversely and materially affected by the plan, or (c) that the debtor has pursuant to authorized corporate action accepted the plan and its stockholders are bound by such acceptance: Provided further, That submission to any class of creditors shall not be necessary if the court shall have determined that the interests of such class of creditors will not be adversely and materially affected by the plan, or that at the time of such determination the interests of such class of creditors have no value, or that the plan provides for the payment in cash to such class of creditors of an amount not less than the value of their interests. For the purpose of this section the acceptance or rejection by any creditor or stockholder shall be in writing, executed by him or by his duly authorized attorney, committee, or representative. If the United States, or any agency thereof, or any corporation (other than the Reconstruction Finance Corporation) the majority of the stock of which is owned by the United States of America, is a creditor or stockholder, the interests or claims thereof shall be deemed to be affected by the plan, and the President of the United States, or any officer or agency he may designate, is hereby authorized to act in respect of the interests or claims of the United States or of such agency or other corporation. The expense of such submission shall be borne by the debtor's estate.

"The court shall confirm the plan if satisfied that it has not been rejected within a reasonable time fixed by it by or on behalf of creditors of any class to which submission is required under this subsection holding one-half or more in amount of the total of the allowed claims of such class which have been reported in said submission as voting on said plan, or by or on behalf of stockholders of any class to which submission is requied under this subsection holding one-half or more of the stock of such class which has been reported in said submission as voting on said plan; and that such acceptances have not been made or procured by any means forbidden by law. If the plan has been so rejected by the creditors and stockholders or any class thereof, the court may nevertheless confirm the plan if it is satisfied and finds, after notice and hearing, that it makes adequate provision for fair and equitable treatment for the interests or claims of those rejecting it in the light of their respective rights and interests, and that the plan conforms to the requirements of clauses (1) to (3), inclusive, of the first paragraph of this subsection (3). In case of a sale pursuant to a plan, of the whole of the debtor's property or such portions thereof as the court shall determine, free from or subject to such liens and encumbrances as it shall determine, at not less than an upset price, the court in its discretion may refer to the Commission for its report thereon, the matter of the determination of a fair price for the sale of the property to be sold.

"In valuing any operating railroad property such value shall be determined on a basis which shall give due consideration to the present and prospective earnings and earning power of such property; in determining such value only such effect shall be given to the present cost of reproduction new and less

depreciation and the original cost of the property, and the actual investment therein, as may be required under the Constitution of the United States.

"If in any reorganization proceeding under this section, the United States is a creditor on claims for taxes or customs duties (whether or not the United States has any other interest in, or claim against, the debtor, as creditor or stockholder), no plan which does not provide for the payment thereof shall be confirmed by the court except upon the acceptance, certified to the court, of a lesser amount by the President of the United States or the officers or agency designated by him pursuant to the provisions of this subsection: Provided, That if the President of the United States or such officer or agency shall fail to accept or reject such lesser amount for more than ninety days after receipt of written notice so to do from the court, accompanied by a certified copy of the plan, the consent of the United States insofar as its claims for taxes or customs duties are concerned shall be conclusively presumed."

SEC. 310. The amendments made by section 309 shall be applicable with respect to proceedings pending on the date of the enactment of this Act: Provided, That such amendments shall not invalidate any action taken before its enactment pursuant to section 77 of the Bankruptcy Act as it existed prior to such amendments.

REORGANIZATION PLANS

SEC. 311. Nothing herein is to be construed as preventing the Railroad Reorganization Court from, after hearing, promulgating its own plan for the reorganization of a particular debtor or, in the discretion of that court, referring the matter to the Finance Division of the Interstate Commerce Commission for the latter's recommendation of a plan to the Railroad Reorganization Court.

CERTIFICATION TO SUPREME COURT

SEC. 312. Questions coming before the Railroad Reorganization Court may be certified to the Supreme Court of the United States as provided in section 239 of the Judicial Code, as amended.

MISCELLANEOUS

SEC. 313. (a) In case of illness or other disability of any judge assigned to the Railroad Reorganization Court, the Chief Justice of the United States may assign any other circuit judge of the United States to act in his place, and may terminate such assignment when the need therefor shall cease; and any circuit judge so assigned to act in place of such judge shall, during his assignment, exercise all the powers and perform all the functions of such judge.

(b) The Railroad Reorganization Court shall provide for the publication of reports of its decisions in such form and manner as may be best adapted for public information and use, and such authorized publications shall be competent evidence of the decisions of the court there contained in all courts of the United States without any further proof or authentication thereof.

SEPARABILITY OF PROVISIONS

SEC. 314. If any provision of this title or the application of such provision to any interstate railroad corporation, person, corporation, partnership, or trust, or under particular circumstances, shall be held invalid, the remainder of the title and of such provision to interstate railroad corporations, persons, corporations, partnerships, or trusts, or under circumstances other than those under which it is held invalid, shall not be affected thereby.

CERTIFICATION OF QUESTIONS

SEC. 315. Notwithstanding any other provision of law, the Railroad Reorganization Court may certify to the Interstate Commerce Commission at any time any questions of fact concerning which, in the opinion of said court, findings are necessary or appropriate for the determination of any matter pending before it, and such findings of fact by said Commission (which may be modifications of earlier findings), if supported by substantial evidence, shall be conclusive. Notwithstanding any other provision of law, said Commission may certify to said court at anytime any questions of law concerning which, in the opinion of said Commission, instructions are necessary or appropriate for the proper determination of any matter pending before it.

COOPERATION OF INTERSTATE COMMERCE COMMISSION

SEC. 316. (a) The Railroad Reorganization Court is authorized to avail itself of the cooperation, records, services, and facilities of the Interstate Commerce Commission.

(b) When in any plan of reorganization or in any other matter pending before it, the Railroad Reorganization Court deems it advisable so to do, it may certify to the Interstate Commerce Commission, for such Commission's advice and opinion in the premises, questions as to the amount of capitalization that the reorganized property or properties should reasonably have, together with the reasonable proportion of fixed charges, and for such other information as the court may desire. The proceedings before the Reorganization Court shall be stayed for a period of not to exceed sixty days to enable the Commission to furnish such information to the court. For good cause shown, said court may, by order, further extend the time within which the Commission may supply this information for such reasonable period as to said court may seem necessary. Any such order of extension shall be entered by the clerk of the court in the proceeding to which it relates, as a part of the record therein. Upon the receipt by said Reorganization Court of the Commission's advice and opinion, as provided for in this paragraph, said court shall, with all reasonable despatch, proceed to a determination of the matters pending before it.

TITLE IV-AMENDMENTS TO RECONSTRUCTION FINANCE CORPORATION ACT

SEC. 401. (a) That the portion of third sentence of the third paragraph of section 5 of the Reconstruction Finance Corporation Act, as amended (U. S. C., 1934 ed., Supp. III, title 15, sec. 605), which precedes the last proviso in such sentence is amended to read as follows:

"Within the foregoing limitations of this section, the Corporation, notwithstanding any limitation of law as to maturity, with the approval of the Interstate Commerce Commission, including approval of the price to be paid, may, to aid in the financing, reorganization, consolidation, maintenance, or construction thereof, purchase for itself, or for account of a railroad obligated thereon, the obligations of railroads engaged in interstate commerce, or guarantee the payment of the principal of, and/or interest on, such obligations, or, when in the opinion of the Corporation, funds are not available on reasonable terms through private channels, make loans to such railroads or to receivers or trustees thereof for the purpose aforesaid: Provided, That in every case of such a loan, or purchase or guaranty of obligation, the Interstate Commerce Commission and the Corporation shall, in connection with the approval and/or authorization thereof, find that the prospective earning power of such railroad, together with the character and value of the security offered, furnish, in the opinion of the Interstate Commerce Commission and the Corporation, respectively, reasonable assurance of the retirement or repayment of such loan or obligation, and reasonable protection to the Corporation:".

(b) The Reconstruction Finance Corporation Act (U. S. C., 1934 ed., title 15, ch. 14; Supp. III, title 15, ch. 14) is amended by adding a new section after section 5e to read as follows:

"SEC. 5f. For the purpose of maintaining and promoting the economic stability of the country or encouraging the employment of labor, the Corporation is authorized and empowered, upon reasonable security and under such terms, conditions, and restrictions as the Corporation may determine, to aid in the financing of such rail, shop appliances, rolling stock, and other equipment, of railroads, as may be approved by the Interstate Commerce Commission as desirable for the preservation and improvement of transportation facilities. The total face amount of loans outstanding and obligations purchased and held by the Corporation under this section shall not exceed at any one time $300,000,000.

"The title of any owner, whether as trustee or otherwise, to any such property leased or conditionally sold to a railroad, in the financing of which the Corporation as so aided, any right of such owner to take possession of such property in compliance with the provisions of any such lease or conditional sales contract, and the right of any owner of a collateral note evidencing a loan to a railroad from the Corporation at any time made under any of the provisions of this Act, as amended, to acquire title to the collateral securing such note, free and clear of any equity of redemption, in compliance with the contract of pledge, and thereafter to deal with the same as the absolute owner thereof, shall not be affected by the provisions of section 77 of the Act of July 1, 1898, entitled 'An Act to establish a uniform system of bankruptcy throughout the United States,' as amended."