(2) By inserting after the word "Act" in the first line of subsection (f) of section 5 the words "or the Civil Aeronautics Act of 1938".

(3) By striking out the first sentence of section 6 and inserting in lieu thereof the following: "The United States of America is hereby declared to possess and exercise complete and exclusive national sovereignty in the air space above the United States, including the air space above all inland waters and the air space above those portions of the adjacent marginal high seas, bays, and lakes, over which by international law or treaty or convention the United States exercises national jurisdiction."

(4) By striking out so much of subsection (b) of section 6 as reads "; and if so authorized, such aircraft and airmen serving in connection therewith, shall be subject to the requirements of section 3, unless exempt under subdivision (c) of this section".

(5) By striking out so much of subsection (c) of section 6 as reads 66 and may by regulation exempt such aircraft, and/or airmen serving in connection therewith, from the requirements of section 3, other than the air traffic rules; but no foreign aircraft shall engage in interstate or intrastate air commerce.", and by inserting in lieu thereof a period and the following: "No foreign aircraft shall engage in air commerce otherwise than between any State, Territory, or possession of the United States (including the Philippine Islands) or the District of Columbia and a foreign country”.

(6) By striking out "51 per centum" in subsection (a) of section 9 thereof and inserting in lieu thereof "75 per centum".

(7) By inserting after the word "Act" in subsection (f) of section 9 the words “or the Civil Aeronautics Act of 1938".

(8) By striking out so much of section 10 as reads "under section three".

(9) By striking out so much of subsection (b) of section 11 as reads "any provision of subdivision (a) of this section or any entry or clearance regulation made under section 7 (b)" and inserting in lieu thereof "any entry or clearance regulation made under section 7 (c)".

(j) Section 203 (b) of the Motor Carrier Act, 1935, is amended by inserting after the words "(7) motor vehicles used exclusively in the distribution of newspapers" a semicolon and the following: “or (7a) the transportation of persons or property by motor vehicle when incidental to transportation by aircraft".

(k) Sections 2 (b) (2) and (3), 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21, and so much of section 8 as reads "; and any person not ineligible under the terms of this Act who qualified under the other requirements of this Act, shall be eligible to contract for carrying air mail, notwithstanding the provisions of section 3950 of the Revised Statutes (Act of June 8, 1872)", of the Act of June 12, 1934, as amended (48 Stat. 1933); the joint resolution of June 26, 1934 (48 Stat. 1243); the Act of March 8, 1928 (45 Stat. 248), as amended; sections 2, 3, and 3a, subsections (a), (b), (e), and (g) of section 5, the second sentence of section 8, and paragraphs (2), (3), (4), and (5) of subsection (a) of section 11 of the Air Commerce Act of 1926, as amended (44 Stat. 568; U. S. C., 1934 ed., title 49, sec. 177); and all other Acts or parts of Acts inconsistent with any provision of this Act are hereby repealed.

EFFECT OF TRANSFERS, REPEALS, AND AMENDMENTS

Effectiveness of Existing Orders, Regulations, and So Forth

SEC. 1108 [52 Stat. 1029, 49 U. S. C. 678] (a) All orders, determinations, rules, regulations, permits, contracts, certificates, licenses, and privileges which have been issued, made, or granted by the Interstate Commerce Commission, the Department of Commerce, or the Postmaster General, or any court of competent jurisdiction, under any provision of law repealed or amended by this Act, or in the exercise of duties, powers, or functions transferred to the Authority by this Act, and which are in effect at the time this section takes effect, shall continue in effect until modified, terminated, superseded, set aside, or repealed by the Authority, or by any court of competent jurisdiction, or by operation of law.

Pending Administrative Proceedings

(b) The provisions of this Act shall not affect any proceedings pending before the Secretary of Commerce or the Postmaster General, or proceedings pending before the Interstate Commerce Commission for the determination of rates for the transportation of air mail by aircraft, on the date of the enactment of this Act; but any such proceedings shall be continued, orders therein issued, appeals therefrom taken, and payments made by the Postmaster General pursuant to such orders, as if this Act had not been enacted; and orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or repealed by the Authority or by operation of law: Provided, That the rates determined by the Interstate Commerce Commission shall be determined without regard to that portion of section 6 (e) of the Air Mail Act approved June 12, 1934, which provides as follows: "which, in connection with the rates fixed by it for all other routes, shall be designed to keep the aggregate cost of the transportation of air mail on and after July 1, 1938, within the limits of the anticipated postal revenue therefrom".

Pending Judicial Proceedings

(c) The provisions of this Act shall not affect suits commenced prior to the date of the organization 13 of the Authority; and all such suits shall be continued, proceedings therein had, appeals therein taken, and judgments therein rendered, in the same manner and with the same effect as if this Act had not been passed. No suit, action, or other proceeding lawfully commenced by or against any agency or officer of the United States, in relation to the discharge of official duties, shall abate by reason of any transfer of authority, power, or duties from such agency or officer to the Authority under the provisions of this Act, but the court, upon motion or supplemental petition filed at any time within twelve months after such transfer, showing the necessity for a survival of such suit, action, or other proceeding to obtain a settlement of the questions involved, may allow the same to be maintained by or against the Authority.

13 So in original.

Records Transferred to Authority

(d) All records transferred to the Authority under this Act shall be available for use by the Authority to the same extent as if such records were originally records of the Authority.

SEPARABILITY

SEC. 1109 [52 Stat. 1030, 49 U. S. C. 679] If any provision of this Act or the application thereof to any person or circumstance is held invalid, the remainder of the Act and the application of such provision to other persons or circumstances shall not be affected thereby.

EFFECTIVE DATE

SEC. 1110 [52 Stat. 1030, 49 U. S. C. 680] The provisions of this Act, except this section, title II, and section 408, shall become effective sixty days after enactment: Provided, That the Authority shall, if it finds such action necessary or desirable in the public interest, by general or special order, postpone the effective date of any provision of this Act, except this section, title II, and section 408, to such time as the Authority shall prescribe, but not beyond the one hundred and eightieth day following the enactment of this Act.

Approved June 23, 1938.

MESSAGE FROM THE PRESIDENT OF THE

UNITED STATES

TRANSMITTING REORGANIZATION PLAN NO. III1

To the Congress of the United States:

When I submitted Reorganization Plans I and II at the last regular session of Congress, I indicated that certain reorganizations of an intradepartmental character were necessary but that detailed study would be required for the preparation of specific plans. Since that time the heads of the executive departments and my own office have continued to study the internal organization of the several agencies of the Government. I have considered recommendations made to me as a result of these studies and have found it possible to make a number of needed improvements of organization by administrative action. In other instances, I can effect the necessary changes only under the procedure set up in the Reorganization Act of 1939.

I am transmitting herewith Reorganization Plan III, which I have prepared in accordance with the provisions of section 4 of the Reorganization Act of 1939 (Public, No. 19, 76th Cong., 1st sess.), approved April 3, 1939; and I declare that with respect to each reorganization made in this plan, I have found that such reorganization is necessary to accomplish one or more of the purposes of section 1 (a) of the act:

1. To reduce expenditures;

2. To increase efficiency;

3. To consolidate agencies according to major purposes;

4. To reduce the number of agencies by consolidating those having similar functions and by abolishing such as may not be necessary; and 5. To eliminate overlapping and duplication of effort.

TREASURY DEPARTMENT

I am proposing two intradepartmental reorganizations relating to the Treasury Department.

The first reorganization consolidates in a Fiscal Service, under the direction of a permanent Fiscal Assistant Secretary, those functions of the Treasury Department pertaining to financing and fiscal activities. This Fiscal Service will bring together the Office of the Treasurer of the United States, the Office of Commissioner of Accounts and Deposits, and the Public Debt Service, including their various subdivisions and certain other related functions.

Some adjustments are made in the assignment of functions of the units which will comprise the Fiscal Service, and certain changes are made in titles. The net effect of these adjustments is to establish within the Fiscal Service the Office of Fiscal Assistant Secretary, the Office of the Treasurer of the United States, and a Bureau of Accounts under a Commissioner of Accounts, and a Bureau of Public Debt

1 Printed as H. Doc. No. 681, 76th Cong., 3d sess.