DELEGATING CERTAIN FUNCTIONS OF THE PRESIDENT UNDER THE DEFENSE PRODUCTION ACT OF 1950
By virtue of the authority vested in me by the Constitution and statutes, including the Defense Production Act of 1950, and as President of the United States and Commander in Chief of the armed forces, it is hereby ordered as follows:
PART I-PRIORITIES AND ALLOCATIONS
SECTION 101. The functions conferred upon the President by Title I of the Defense Production Act of 1950 are hereby delegated as follows:
(a) To the Secretary of the Interior with respect to petroleum, gas, solid fuels, and electric power.
(b) To the Secretary of Agriculture with respect to food, and with respect to the domestic distribution of farm equipment and commercial fertilizer.
(c) To that commissioner of the Interstate Commerce Commission who is responsible for the supervision of the Bureau of Service of the Commission, with respect to domestic transportation, storage, and port facilities, or the use thereof, but excluding air transport, coastwise, intercoastal, and overseas shipping.
(d) To the Secretary of Commerce with respect to all materials and facilities except as provided in paragraphs (a), (b), and (c) of this section 101.
SEC. 102. Each delegate referred to in section 101 of this Executive order shall, in connection with carrying out the priorities and allocations functions delegated to him by such section, (a) receive from appropriate agencies of the Government information relating to the direct and indirect military, other governmental, civilian, and foreign requirements for materials and facilities, (b) review and evaluate such requirements in the light of available materials and facilities, and (c) exercise his priorities and allocations powers in such manner as will in his judgment promote adequate supplies and their proper distribution.
SEC. 103. (a) Each delegate referred to in section 101 of this Executive order shall be a claimant before the other such delegates, respectively, in the case of materials and additional facilities deemed by the claimant delegate to be necessary for the provision of an adequate supply of the materials and facilities with respect to which delegation is made to the claimant delegate by the said section 101.
(b) Each delegate under section 101 of this Executive order may, with the approval of the Chairman of the National Security Resources Board, designate agencies and officers of the Government, additional to the claimants referred to in section 103(a) of this Executive order, to be claimants before such delegate with respect to stated materials and facilities.
PART II-REQUISITIONING
SEC. 201. (a) Except as provided in section 201(b) of this Executive order, the functions conferred upon the President by Title II of the Defense Production Act of 1950 are hereby delegated to the officers to whom functions are delegated by section 101 of this Executive order, respectively, according to the designations of materials and facilities set forth in paragraphs (a), (b), (c), and (d) of the said section 101.
(b) The functions conferred upon the President by sections 201(b) and 201(c) of the Defense Production Act of 1950, exclusive of determinations with respect to the termination of the need for the national defense of any property requisitioned under Title II of the said Act, are hereby delegated to the Administrator of General Services.
PART III-EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY
SEC. 301. The Department of the Army, the Department of the Navy, the Department of the Air Force, the Department of Commerce, the Department of the Interior, the Department of Agriculture, and the General Services Administration, in this Part referred to as guaranteeing agencies, and each delegate under section 101 of this Executive order shall develop and promote measures for the expansion of productive capacity and of production and supply of materials and facilities necessary for the national defense.
SEC. 302. (a) Each guaranteeing agency is hereby authorized, in accordance with section 301 of the Defense Production Act of 1950, subject to the provisions of this section, in order to expedite production and deliveries or services under Government contracts, and without regard to provisions of law relating to the making, performance, amendment, or modification of contracts, to guarantee in whole or in part any public or private financing institution (including any Federal Reserve Bank), by commitment to purchase, agreement to share losses, or otherwise, against loss of principal or interest on any loan, discount, or advance, or on any commitment in connection therewith, which may be made by such financing institution for the purpose of financing any contractor, subcontractor, or other person in connection with the performance, or in connection with or in contemplation of the termination, of any contract or other operation deemed by the guaranteeing agency to be necessary to expedite production and deliveries or services under Government contracts for the procurement of materials or the performance of services for the national defense.
(b) Each Federal Reserve Bank is hereby designated and authorized to act, on behalf of any guaranteeing agency, as fiscal agent of the United States in the making of such contracts of guarantee and in otherwise carrying out the purposes of the said section 301, in respect of private financing institutions.
(c) All actions and operations of Federal Reserve Banks, under authority of or pursuant to the said section 301 of the Defense Production Act of 1950, shall be subject to the supervision of the Board of Governors of the Federal Reserve System. Said Board is hereby authorized, after consultation with the heads of the guaranteeing agencies, (1) to prescribe such regulations governing the actions and operations of fiscal agents hereunder as it may deem necessary, (2) to prescribe, either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with loans, discounts, advances, or commitments guaranteed by the guaranteeing agencies through such fiscal agents, and (3) to prescribe regulations governing the forms and procedures (which shall be uniform to the extent practicable) to be utilized in connection with such guarantees.
SEC. 303. Within such amounts of funds as the President shall have made available, and upon the certificate by the Secretary of the Interior in respect of metals and minerals (except as to paragraph (c) of this section), or by the Secretary of Agriculture in respect of lumber, or by the appropriate delegate referred to in section 101 of this Executive order in respect of other materials and facilities, or by such other officer or officers of the Government as the President may designate, as to the necessity for loans, purchases, or commitments, as the case may be:
(a) The Reconstruction Finance Corporation is hereby authorized and directed to make loans (including participations in, or guarantees of, loans) to private business enterprises (including research corporations not organized for profit) for the expansion of capacity, the development of technological processes, and the production of essential materials, including the exploration, development, and mining of strategic and critical metals and minerals, as authorized by and subject to section 302 of the Defense production Act of 1950.
(b) The Administrator of General Services is hereby authorized and directed to purchase and make commitments to purchase metals, minerals, and other raw materials including liquid fuels, for Government use or resale, as authorized by and subject to section 303 of the said Act: Provided, That the Secretary of Agriculture is also authorized to exercise the functions under section 303 with respect to agricultural commodities.
(c) The Secretary of the Interior is hereby authorized and directed to encourage the exploration, development, and mining of critical and strategic minerals and metals, as authorized by and subject to the provisions of the said section 303.
SEC. 304. The functions conferred upon the President by section 303(d) of the Defense Production Act of 1950 with respect to the installation of additional equipment, facilities, processes, or improvements to plants, factories, and other industrial facilities owned by the United States Government, and with respect to the installation of Government-owned equipment in plants, factories, and other industrial facilities owned by private persons, are hereby delegated to the Administrator of General Services.
PART IV-ECONOMIC STABILIZATION
SEC. 401. (a) There is hereby created a new and independent agency to be known as the Economic Stabilization Agency, hereafter in this Part referred to as the Agency. There shall be at the head of the Agency an Economic Stabilization Administrator, hereafter in this Part referred to as the Administrator, who shall be appointed by the President by and with the advice and consent of the Senate.
(b) The Administrator shall seek to preserve and maintain the stabilization of the economy. To this end he shall:
(1) Plan and develop both short and long-range price and wage stabilization policies and measures and create the necessary organization for their administration.
(2) Inform the public, agriculture, industry and labor concerning the need for stabilization and encourage and promote voluntary action to this end.
(3) Consult and advise with the Government officials responsible for procurement, production, manpower, and rent control, and for fiscal, credit and monetary policies, concerning measures within their jurisdiction which will assist stabilization.
(4) Establish price ceilings and stabilize wages and salaries where necessary.
(c) The functions conferred upon the President by Title IV of the Defense Production Act of 1950 are hereby delegated to the Administrator.
SEC. 402. There shall be in the Agency a Director of Price Stabilization, who shall be appointed by the President by and with the advice and consent of the Senate, and who shall perform such functions with respect to price stabilization as may be determined by the Administrator.
SEC. 403. (a) There shall be in the Agency a Wage Stabilization Board composed of nine members who shall be appointed by the President. Three of the members so appointed shall be representative of the public, three shall be representative of labor, and three shall be representative of business and industry. One of the members representing the public, to be designated by the President, shall be chairman of the Board.
(b) The Wage Stabilization Board shall make recommendations to the Administrator regarding the planning and development of wage stabilization policies and shall perform such further functions with respect to wage stabilization as may be determined by the Administrator after consultation with the Board.
SEC. 404. The Administrator is hereby designated to initiate such consultations and conferences with management, labor, and representatives of the government and public as he deems appropriate and to advise the President of such action as may be called for in carrying out the provisions of Title V of the Defense Production Act of 1950.
PART V-REAL ESTATE CREDIT
SEC. 501. (a) Subject to the provisions of section 501(b) of this Executive order, the functions conferred upon the President by section 602 of the Defense Production Act of 1950 are hereby delegated to the Board of Governors of the Federal Reserve System.
(b) The said Board shall obtain concurrence of the Housing and Home Finance Administrator with respect to provisions relating to real estate construction credit involving residential property before prescribing, changing, or suspending any real estate construction credit regulation pursuant to the authority of section 602 of the Defense Production Act of 1950.
SEC. 502. (a) The functions conferred upon the president by section 605 of the Defense Production Act of 1950, to the extent that such functions relate to loans on real estate involving residential property, are hereby delegated to the Housing and Home Finance Administrator.
(b) In carrying out the functions delegated by section 502(a) of this Executive order, and under the authority so delegated or under authority vested in him by an applicable law, the Administrator shall from time to time issue such regulations and take such other action as may be necessary to insure (1) that the restrictions imposed on real estate construction credit by the provisions of the regulations issued from time to time by the Board of Governors of the Federal Reserve System (with the concurrence of the Housing and Home Finance Administrator in the provisions of such regulations relating to credit involving residential property) under the authority delegated by section 501 of this Executive order shall be applicable to the fullest extent practicable with respect to loans on real estate (of the types referred to in section 605 of the Defense Production Act of 1950) involving residential property, and (2) that the relative credit preferences accorded to veterans under existing law are preserved in accordance with the provisions of section 605 of the Defense Production Act of 1950.
PART VI-LABOR SUPPLY
SEC. 601. The Secretary of Labor shall utilize the functions vested in him so as to meet most effectively the labor needs of defense industry and essential civilian employment, and to this end he shall:
(a) Assemble and analyze information on labor requirements for defense and other activities and on the supply of workers.
(b) Consult with and advise each delegate referred to in section 101 of this Executive order and each official exercising guarantee or loan functions under Part III of this Executive order concerning (1) the effect of contemplated actions on labor supply and utilization, (2) the relation of labor supply to materials and facilities requirements, (3) such other matters as will assist in making the exercise of priority and allocations functions consistent with effective utilization and distribution of labor.
(c) Formulate plans, programs, and policies for meeting defense and essential civilian labor requirements.
(d) Utilize the public employment service system, and enlist the cooperation and assistance of management and labor to carry out these plans and programs and accomplish their objectives.
(e) Determine the occupations critical to meeting the labor requirements of defense and essential civilian activities and with the Secretary of Defense, the Director of Selective Service, and such other persons as the President may designate develop policies applicable to the induction and deferment of personnel for the armed services, except for civilian personnel in the reserves.
PART VII-VOLUNTARY AGREEMENTS
SEC. 701. (a) The functions conferred upon the President by section 708(a) of the Defense Production Act of 1950 are hereby delegated as follows:
(1) To the Secretaries of the Interior, Agriculture, and Commerce, and to the commissioner of the Interstate Commerce Commission referred to in section 101 of this Executive order, respectively, according to the designations of materials and facilities set forth in paragraphs (a), (b), (c), and (d) of such section 101.
(2) To the Board of Governors of the Federal Reserve System with respect to financing.
(3) To the Economic Stabilization Administrator with respect to stabilization.
(b) The functions conferred upon the President by section 708(b) of the Defense Production Act of 1950 are hereby delegated as follows:
(1) To the Secretary of Commerce in respect of Title I of the Defense Production Act of 1950.
(2) In other respects to the delegates referred to in section 701(a) of this Executive order, respectively, according to the provisions of paragraphs (1), (2), and (3) thereof.
(c) The delegation of authority made by section 701(b) of this Executive order is subject to the conditions (1) that each delegate concerned shall consult with the Attorney General and the Chairman of the Federal Trade Commission not less than ten days before making any request or finding under section 708(b) of the Defense Production Act of 1950, (2) that each delegate concerned shall obtain the approval of the Attorney General to any request under said section 708(b) before making the request, and (3) that the authority delegated may not be redelegated.
PART VIII-COORDINATION
SEC. 801. In the interest of consistent and coordinated administration of functions delegated by this Executive order, each officer to whom functions are delegated shall be guided by such policies and program directives as the President may from time to time prescribe.
SEC. 802. The Chairman of the National Security Resources Board shall, in the interest of assisting the President to coordinate the functions delegated by this Executive order, and on behalf of the President:
(a) Resolve interagency issues which otherwise would require the attention of the President.
(b) Prescribe policy and program directives having the approval of the President.
(c) Obtain reports and information on the status of work in the various agencies designated in this Executive order.
(d) Take such measures to obtain coordination of related policies and activities among the various agencies as he may determine.
(e) Advise the President on the progress of the defense production program and make such recommendations as he may deem proper.
SEC. 803. The Council of Economic Advisers shall adapt its continuing studies of employment, production and purchasing power needs and objectives so as to furnish guides to the agencies under this Executive order in promoting balance between defense and civilian needs and in avoiding inflation in a stable and growing economy. In the performance of this function, the Council shall obtain necessary information from the agencies concerned and engage in regular consultation with them.
PART IX-GENERAL PROVISIONS
SEC. 901. As used in this Executive order:
(a) The term "functions" includes powers, duties, authority, responsibilities, and discretion.
(b) The term "materials" includes raw materials, articles, commodities, products, supplies, components, technical information, and processes, but excludes fissionable material as defined in the Atomic Energy Act of 1946.
(c) The term "petroleum" shall mean crude oil and synthetic liquid fuel, their products, and associated hydrocarbons, including pipelines for the movement thereof.
(d) The term "gas" shall mean natural gas and manufactured gas, including pipelines for the movement thereof.
(e) The term "solid fuels" shall mean all forms of anthracite, bituminous, sub-bituminous, and lignitic coals, and coke and its byproducts.
(f) The term "electric power" shall mean all forms of electric power and energy, including the generation, transmission, distribution, and utilization thereof.
(g) The term "metals and minerals" shall mean all raw materials of mineral origin, including their refining and processing but excluding their fabrication.
(h) The term "food" shall mean all commodities and products, simple, mixed, or compound, or complements to such commodities or products, that are capable of being eaten or drunk by either human beings or animals, irrespective of other uses to which such commodities or products may be put, at all stages of processing from the raw commodity to the products thereof in vendible form for immediate human or animal consumption. For the purposes of this Executive order the term "food" shall also include all starches, sugars, vegetable and animal fats and oils, cotton, tobacco, wool, mohair, hemp, flax fiber, and naval stores, but shall not include any such material after it loses its identity as an agricultural commodity or agricultural product.
(i) The term "farm equipment" shall mean equipment manufactured for use on farms in connection with the production or processing of food.
(j) The term "fertilizer" shall mean fertilizer in form for distribution to the users thereof.
(k) The term "domestic transportation, storage, and port facilities" shall include locomotives, cars, motor vehicles, watercraft used on inland waterways, in harbors, and on the Great Lakes, and other vehicles, vessels, and all instrumentalities of shipment or carriage, irrespective of ownership, and all services in or in connection with the carriage of persons or property in intrastate, interstate, or foreign commerce within the United States, except movement of petroleum and gas by pipeline; and warehouses, piers, docks, wharves, loading and unloading equipment, and all other structures and facilities used in connection with the transshipment of persons and property between domestic carriers and carriers engaged in coastwise, intercoastal, and overseas transportation.
SEC. 902. (a) Except as otherwise provided in section 902(c) of this Executive order, each officer or agency having functions under the Defense Production Act of 1950 delegated or assigned thereto by this Executive order may exercise and perform, with respect to such functions, the functions vested in the President by Title VII of the said Act.
(b) The functions which may be exercised and performed pursuant to the authority of section 902(a) of this Executive order shall include, but not by way of limitation, (1) except as otherwise provided in section 701(c) of this Executive order, and except as otherwise required by section 403 of the Defense Production Act of 1950, the power to redelegate functions, and to authorize the successive redelegation of functions, to agencies, officers, and employees of the Government, (2) the power to create an agency or agencies, under the jurisdiction of the officer concerned, to administer functions delegated by this Executive order, and (3) in respect of Parts I, II, IV, and V of this Executive order, the power of subpoena: Provided, That the subpoena power shall be utilized only after the scope and purpose of the investigation, inspection, or inquiry to which the subpoena relates have been defined either by the appropriate officer referred to in section 902(a) of this Executive order or by such other person or persons as he shall designate.
(c) There are excluded from the functions delegated by section 902(a) of this Executive order (1) the functions delegated by Part VII of this Executive order, (2) the functions of the President under sections 703(b) and 710(a) of the Defense Production Act of 1950, (3) the functions of the President with respect to regulations under sections 710(b), 710(c), and 710(d) of the said Act, and (4) the functions of the President with respect to fixing compensation under section 703(a) of the said Act.
(d) The functions conferred upon the President by section 710(a) of the Defense Production Act of 1950 are hereby delegated as follows:
(1) Each officer or agency having functions under the said Act delegated or assigned to such officer or agency by this Executive order shall submit to the Chairman of the United States Civil Service Commission such requests for classification of positions in grades 16, 17, and 18 of the General Schedule as may be necessary, and shall accompany any such request with a certificate stating that the duties of the position are essential and appropriate for the administration of the said Act.
(2) Each requested position shall be placed in the appropriate grade of the General Schedule in accordance with the standards and procedures of the Classification Act of 1949. No person shall be employed in a position of grade 16, 17, or 18 under authority of section 710(a) of the Defense Production Act of 1950 except pursuant to notice of the Chairman of the United States Civil Service Commission of the classification of the position.
SEC. 904. Each delegate referred to in section 101 of this Executive order shall, when and if he shall deem it necessary and appropriate, appoint a committee composed of representatives of such agencies of the Government as he may determine. Any committee so appointed shall advise and consult with the delegate concerned, as he may request, in connection with the carrying out of the functions delegated to him by sections 101, 201, and 302 of this Executive order, and shall advise the delegate concerned regarding requirements of materials and facilities.
HARRY S. TRUMAN
THE WHITE HOUSE,
September 9, 1950; 4:30 p.m.