lation to extend the Renegotiation Act of 1951; which, with the accompanying paper, was referred to the Committee on Finance. AUDIT REPORT OF EXPORT-IMPORT BANK OF WASHINGTON The VICE PRESIDENT laid before the Senate a communication from the Comptroller General of the United States, transmitting, pursuant to law, an audit report of the Export-Import Bank of Washington for the fiscal year 1961; which, with the accompanying report, was referred to the Committee on Government Operations. AUDIT REPORT OF FARM CREDIT The VICE PRESIDENT laid before the Senate a communication from the Comptroller General of the United States, transmitting, pursuant to law, an audit report of the Farm Credit Administration for the fiscal year 1961; which, with the accompanying report, was referred to the Committee on Government Operations. REMOVAL OF CEILING ON AUTHORIZATION FOR APPROPRIATIONS FOR GOVERNMENT OF TRUST TERRITORY OF PACIFIC ISLANDS The VICE PRESIDENT laid before the Senate a communication from the Assistant Secretary of the Interior, transmitting a draft of proposed legislation to remove the ceiling on the authorization for appropriations for the government of the Trust Territory of the Pacific Islands; which, with the accompanying paper, was referred to the Committee on Interior and Insular Affairs. EXCHANGE OF CERTAIN LANDS AT ANTIETAM NATIONAL BATTLEFIELD SITE The VICE PRESIDENT laid before the Senate a communication from the Assistant Secretary of the Interior, transmitting a draft of proposed legislation to authorize the exchange of certain lands at Antietam National Battlefield Site; which, with the accompanying paper. was referred to the Committee on Interior and Insular Affairs. SOIL SURVEY AND LAND CLASSIFICATION OF EMERY COUNTY PROJECT, UTAH The VICE PRESIDENT laid before the Senate a communication from the Assistant Secretary of the Interior, transmitting, pursuant to law, an adequate soil survey and land classification of the lands to be benefited in the Emery County project, Utah; which, with the accompanying report, was referred to the Committee on Interior and Insular Affairs. SOIL SURVEY AND LAND CLASSIFICATION OF DALLES PROJECT, OREGON The VICE PRESIDENT laid before the Senate a communication from the Secretary of the Interior, transmitting, pursuant to law, an adequate soil survey and land classification of the lands in the Dalles project, western division, Oregon; which, with the accompanying report. was referred to the Committee on Interior and Insular Affairs, WHITMAN NATIONAL MONUMENT The VICE PRESIDENT laid before the Senate a communication from the Assistant Secretary of the Interior, transmitting a draft of proposed legislation to change the name of Whitman National Monument to Whitman Mission National Historic Site; which, with the accompanying paper, was referred to the Committee on Interior and Insular Affairs. REPORT ON UPPER DIVISION, BAKER PROJECT, OREGON The VICE PRESIDENT laid before the Senate a communication from the Secretary of the Interior, transmitting, pursuant to law, his report on the upper division, Baker project, Oregon; which, with the accompanying report, was referred to the Committee on Interior and Insular Affairs. REPORT ON CROOKED RIVER PROJECT EXTENSION, OREGON The VICE PRESIDENT laid before the Senate a communication from the Secretary of the Interior, transmitting, pursuant to law, his report on the Crooked River project extension, Oregon; which, with the accompanying report, was referred to the Committee on Interior and Insular Affairs. CONSTRUCTION PAYMENTS FROM BELLE FOURCHE PROJECT, SOUTH DAKOTA The VICE PRESIDENT laid before the Senate a communication from the Assistant Secretary of the Interior, transmitting, pursuant to law, a report of his determinations relating to the 1962 cǝnstruction payment due the United States from the Belle Fourche Irrigation District, Belle Fourche project, South Dakota; which was referred to the Committee on Interior and Insular Affairs. APPROPRIATIONS FOR ATOMIC ENERGY The VICE PRESIDENT laid before the Senate a communication from the Chairman of the US. Atomic Energy Commission, transmitting a draft of proposed legislation to authorize appropriations for the Atomic Energy Commission for the fiscal year 1963; which, with the accompanying paper, was referred to the Joint Committee on Atomic Energy. REPORT ON AUBURN-FOLSOM SOUTH UNIT, CENTRAL VALLEY, CALIF. The VICE PRESIDENT laid before the Senate a communication from the Secretary of the Interior, transmitting. pursuant to law, his report on the Auburn-Folsom south unit proposing expansion of the Central Valley project in California; which, with the accompanying report, was referred to the Committee on Interior and Insular Affairs. PER DIEM ALLOWANCES TO COMMISSIONED HEALTH The VICE PRESIDENT laid before the Senate a communication from the Secretary of Health, Education, and Welfare, transmitting a draft of pro posed legislation to validate payments of certain special station per diem allowances and certain basic allowances for quarters made in good faith to commissioned officers of the Public Health Service; which, with the accompanying paper, was referred to the Committee on the Judiciary. REPORT OF HELIUM PROGRAM The VICE PRESIDENT laid before the Senate a communication from the Administrative Assistant Secretary of the Interior, transmitting, pursuant to law, a report for the fiscal year 1961 of contracts with private companies to extract helium from natural gas, and additional information regarding the current status of the program up to December 31, 1961; which, with the accompanying papers, was referred to the Committee on Interior and Insular Affairs. REPORT OF TORT CLAIMS PAID BY The VICE PRESIDENT laid before the Senate a communication from the Administrative Assistant Attorney General, transmitting, pursuant to law, a report of the administrative tort claims paid by the Department for the fiscal year 1961; which, with the accompanying report, was referred to the Committee on the Judiciary. AUTHORIZING APPROPRIATIONS FOR ATOMIC ENERGY COMMISSION The VICE PRESIDENT laid before the Senate a communication from the Chairman of the US. Atomic Energy Commission, transmitting a draft of proposed legislation authorizing appropriations for the Atomic Energy Commission in accordance with section 261 of the Atomic Energy Act of 1954; which, with the accompanying paper, was referred to the Joint Committee on Atomic Energy. REPORTS OF PROFESSIONAL AND SCIENTIFIC POSITIONS IN CERTAIN GOVERNMENT DEPARTMENTS The VICE PRESIDENT laid before the Senate a communication from the Director of Personnel, Department of Commerce, transmitting, pursuant to law, reports of professional and scientific positions established in the Department for the calendar year 1961; which, with the accompanying papers, was referred to the Committee on Post Office and Civil Service. The VICE PRESIDENT laid before the Senate a communication from the Director of the Administrative Office of the U.S. Courts, transmitting, pursuant to law, reports of professional and scientific positions established in the courts for the calendar year 1961; which, with the accompanying papers, was referred to the Committee on Post Office and Civil Service. REPORT OF NATIONAL LABOR RELATIONS BOARD The VICE PRESIDENT laid before the Senate a communication from the Chairman of the National Labor Relations Board, transmitting, pursuant to law, the annual report of the Board for the fiscal year 1961, showing the names, salaries, and duties of all employees and officers of the Board, and cases heard or in which decisions were rendered by the Board; which, with the accompanying report, was referred to the Committee on Labor and Public Welfare. PETITIONS The VICE PRESIDENT laid before the Senate a resolution of the Legislature of the Territory of Guam favoring the enactment of legislation authorizing and empowering the appropriate department to reopen land condemnation of lands within the territory of Guam; which was referred to the Committee on Interior and Insular Affairs. Mr. JOHNSTON (for himself and Mr. THURMOND) presented a concurrent resolution of the Legislature of the State of South Carolina favoring the noncancellation by Federal Communications Commission of the license and franchise held by WIS-TV, Columbia, S.C., for television transmission over VHF channel 10; which was referred to the Committee on Commerce. REPORTS OF COMMITTEES Mr. JOHNSTON, from the Committee on Post Office and Civil Service, to whom were referred the following resolutions, reported them each without amendment and submitted reports thereon, as follows: S. Res. 235. Resolution authorizing the Committee on Post Office and Civil Service to employ an additional clerical assistant (Rept. No. 11251); and S. Res. 236. Resolution authorizing the Committee on Post Office and Civil Service to investigate the postal service and civil service systems (Rept. No. 1126). Ordered, That the resolutions be referred to the Committee on Rules and Administration. Mr. MAGNUSON, from the Committee on Rules and Administration, to whom was referred the resolution (S. Res. 251) authorizing the Committee on Commerce to investigate certain matters within its jurisdiction, and providing funds therefor reported it with an amendment; and Ordered, That it be referred to the Committee on Rules and Administration. Mr. ROBERTSON, from the Joint Committee on Defense Production, submitted the 11th annual report (No. 1124) on the activities of the joint committee; which was ordered to be printed with illustrations. INTRODUCTION OF BILLS AND A JOINT Bills and a joint resolution were introduced, severally read the first and second times by unanimous consent, and referred as follows: By Mr. DIRKSEN: S. 2717. A bill to authorize certain improvement of Hurricane Creek for flood control purposes in the vicinity of Hillview, Ill.; to the Committee on Public Works, By Mr. LAUSCHE: S. 2718. A bill for the relief of Mrs. Juana Christopetrou; to the Committee on the Judiciary. By Mr. HAYDEN: S. 2719. A bill to authorize the Secretary of Defense to lend certain Army, Navy, and Air Force equipment and to provide transportation and other services to the Boy Scouts of America in connection with the World Jamboree of Boy Scouts to be held in Greece in 1963, and for other purposes; to the Committee on Armed Services. By Mr. KERR (for himself, Mr. S. 2720. A bill to authorize reimbursement to the States or the designation of additional Interstate System mileage for certain free or toll highways now on the Interstate System, and for other purposes; to the Committee on Public Works. By Mr. CHURCH (by request): S. 2721. A bill to provide relief for the heirs and devisees of Fly and Her Growth, deceased Lower Brule Indian allottees; to the Committee on Interior and Insular Affairs. By Mr. BUSH: S. 2722. A bill for the relief of Miss Livia Sernini (Cucciatti); to the Committee on the Judiciary. By Mr. ANDERSON: S. 2723. A bill to provide that lands within the exterior boundaries of a national forest acquired under section 8 of the act of June 28, 1934, as amended (43 U.S.C. 315g), may be added to the national forest, and for other purposes; to the Committee on Interior and Insular Affairs. By Mr. BENNETT: S. 2724. A bill to amend section 203 (j) of the Federal Property and Administrative Services Act of 1949 to permit the disposal of surplus property for use in the development, operation, and maintenance of State parks and State recreational areas; to the Committee on Government Operations. By Mr. HARTKE: S. 2725. A bill to provide for a special additional appropriation for the purpose of accelerating research with respect to the causes, prevention, and cure of cancer, heart disease, and mental illness; to the Committee on Labor and Public Welfare. S. 2726. A bill to provide for the establishment of a Citizens' Council for the Spread of Freedom; to the Committee on Foreign Relations. S. 2727. A bill to provide for the establishment of a Permanent Commission on Governmental Operations; to the Committee on Government Operations. By Mr. PASTORE: S. 2728. A bill for the relief of Chan Wing Cheung, also known as Bill Woo; to the Committee on the Judiciary. By Mr. GOLDWATER: S. 2729. A bill for the relief of Hom Wah Yook (also known as Hom Bok Heung); to the Committee on the Judiciary. By Mr. FULBRIGHT: S. 2730. A bill to waive the limitations and restrictions of section 142 of title 28, United States Code, with respect to the holding of court at Fayetteville, Ark., by the U.S. District Court for the Western District of Arkansas; to the Committee on the Judiciary. By Mr. WILLIAMS of New Jersey: S. 2731. A bill to amend title 38, United States Code, to provide vocational rehabilitation, education and training, mustering-out and loan guaranty benefits for veterans of service after January 31, 1955, to provide that mustering-out pay shall be paid at increased rates for persons recalled to active duty since August 1, 1961, to provide loan assistance for persons so recalled who were compelled to liquidate their business, and for other purposes; to the Committee on Labor and Public Welfare. S. 2732. A bill for the relief of Yoon So Shim; to the Committee on the Judiciary. By Mr. MAGNUSON (by request): S. 2733. A bill to amend section 20b of the as Interstate Commerce Act, amended; to the Committee on Commerce. By Mr. RUSSELL (for himself and Mr. SALTONSTALL): S. 2734. A bill to authorize appropriations during fiscal year 1963 for aircraft, missiles, and naval vessels for the Armed Forces, and for other purposes; to the Committee on Armed Services. By Mr. BEALL: S. 2735. A bill for the relief of John R. Devereux; to the Committee on the Judiciary. By Mr. CAPEHART: S. 2736. A bill for the relief of Arie Abramovich; to the Committee on the Judiciary. By Mr. MAGNUSON (for himself, Mr. CHURCH, Mr. JACKSON, Mr. MORSE, and Mrs. NEUBERGER): S. 2737. A bill to encourage the use of American-flag vessels by domestic industries, and for other purposes; to the Committee on Commerce. By Mr. SCOTT: S. 2738. A bill to deny the use of the U.S. postal service for the carriage of Communist political propaganda; to the Committee on Post Office and Civil Serv ice. By Mrs. NEUBERGER (for herself and Mr. MORSE): S. 2739. A bill to authorize the Secretary of the Interior to construct, operate, and maintain the Merlin division, Rogue River Basin project, Oregon, and for other purposes; to the Committee on Interior and Insular Affairs. By Mr. KERR (for himself and Mr. CHAVEZ) (by request): S.J. Res. 148. Joint resolution providing for the establishment of the National Capital Parks Memorial Board; to the Committee on Public Works. ADDITIONAL COAUTHORS OF SENATE JOINT RESOLUTION 142 On motion by Mr. McGEE, and by unanimous consent, Ordered, That the names of the following Senators be added as coauthors of the joint resolution (S.J. Res. 142) proposing an amendment to the Constitution of the United States relative to equal rights for men and women: Mr. HICKEY, Mr. CHAVEZ, Mr. GRUENING, Mr. LONG of Missouri, Mr. BIBLE, Mr. HRUSKA, Mr. Moss, Mr. YOUNG of North Dakota, Mr. COOPER, Mr. BUSH, Mr. BEALL, Mr. BARTLETT, Mr. MORSE, Mr. SMATHERS, Mr. TALMADGE, Mr. DWORSHAK, and Mr. CARLSON. EXPENSES OF COMMITTEE TO ATTEND FUNERAL OF THE LATE SENATOR SCHOEPPEL Mr. CARLSON submitted the following resolution (S. Res. 272): Resolved, That the Secretary of the Senate is hereby authorized and directed to pay from the contingent fund of the Senate the actual and necessary expenses incurred by the committee appointed to arrange for and attend the funeral of the Honorable Andrew F. Schoeppel, late a Senator from the State of Kansas, on vouchers to be approved by the chairman of the Committee on Rules and Administration. The Senate proceeded, by unanimous consent, to consider the said resolution; and Resolved, That the Senate agree thereto. ADDITIONAL FUNDS FOR SUBCOMMITTEE ON MIGRATORY LABOR OF COMMITTEE ON LABOR AND PUBLIC WELFARE Mr. WILLIAMS of New Jersey submitted the following resolution (S. Res. 273); which was referred to the Committee on Labor and Public Welfare: Resolved, That the Committee on Labor and Public Welfare, or any duly authorized subcommittee thereof, is authorized under sections 134(a) and 136 of the Legislative Reorganization Act of 1946, as amended, and in accordance with its jurisdictions specified by rule XXV of the Standing Rules of the Senate, to examine, investigate, and make a complete study of any and all matters pertaining to migratory labor including. but not limited to, such problems as (a) the wages of migratory workers, their working conditions, transportation facilities, housing, health and educational opportunities for migrants and their children, (b) the nature of and the relationships between the programs of the Federal Government and the programs of State and local governments and the activities of private organizations dealing with the problems of migratory workers, and (c) the degree of additional Federal action necessary in this area. SEC. 2. For the purposes of this resolution the committee, from February 1. 1962, to January 31, 1963, inclusive, is authorized (1) to make such expenditures as it deems advisable; (2) to employ upon a temporary basis, technical, clerical, and other assistants and consultants: Provided, That the minority is authorized to select one person for appointment, and the person so selected shall be appointed and his compensation shall be so fixed that his gross rate shall not be less by more than $1,400 than the highest gross rate paid to any other employee; and (3) with the prior consent of the heads of the departments or agencies concerned, and the Committee on Rules and Administration, to utilize the reimbursable services, information, facilities, and personnel of any of the departments or agencies of the Government. SEC. 3. The committee shall report its findings, together with its recommendations for legislation as it deems advisable, to the Senate at the earliest practicable date, but not later than January 31, 1963. SEC. 4. Expenses of the committee under this resolution, which shall not exceed $50,000, shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee. STOCK DISTRIBUTION TREATED AS RETURN OF CAPITAL The Senate, under its order of January 18, 1962, resumed the consideration of its unfinished busines; viz, the bill (H.R. 8847) to amend the Internal Revenue Code of 1954 so as to provide that a distribution of stock made to an individual (or certain corporations) pursuant to an order enforcing the antitrust laws shall not be treated as a dividend distribution but shall be treated as a return of capital; and to provide that the amount of such a distribution made to a corporation shall be the fair market value of the distribution. Pending debate, On motion of Mr. GORE to recommit the bill to the Committee on Finance with instructions to report back, at such time as a final order prescribing the terms of divestiture of General Motors stock by E. I. du Pont de Nemours & Co. shall have been entered, a bill providing such tax relief as the committee may deem appropriate and equitable. Pending debate, MESSAGE FROM THE HOUSE A message from the House of Representatives, by Mr. Bartlett, one of its clerks: Mr. President: The House of Representatives has passed the following resolution, which I am directed to communicate to the Senate: Resolved, That the House has heard with profound sorrow of the death of the Honorable ANDREW F. SCHOEPPEL, a Senator of the United States from the State of Kansas. Resolved, That the Clerk communicate these resolutions to the Senate and transmit a copy thereof to the family of the deceased Senator. Resolved, That a committee of six Members be appointed on the part of the House to join the committee appointed on the part of the Senate to attend the funeral. Resolved, That as a further mark of respect to the memory of the deceased the House do now adjourn. STOCK DISTRIBUTION TREATED AS RETURN OF CAPITAL The Senate resumed the consideration of its unfinished business, viz, the bill (H.R. 8847) to amend the Internal Reve in subsection (b))" and insert to a shareholder On page 2, strike out lines 12 through 16, as follows: "(b) QUALIFYING SHAREHOLDER.-For purposes of this section, the term 'qualifying shareholder' means any shareholder other than a corporation which may be allowed a deduction under section 243, 244, or 245 with respect to dividends received." On page 2, line 17, strike out "(c)" and insert (b) On page 3, after line 2, insert the following: "(3) Amount distributed to corporate distributees.-Notwithstanding section 301 (b) (1) (but subject to section 301(b) (2)), for purposes of this section the amount of a distribution of divested stock received by a corporation shall be the fair market value of such stock. "(4) Basis of divested stock received by corporate distributees.-Notwithstanding section 301(d), the basis of divested stock received by a corporation in a distribution to which subsection (a) applies shall be the fair market value of such stock." On page 3, line 3, strike out "(d)" and insert (c) On page 3, line 12, strike out "(e)" and insert (d) On page 2, line 7, strike out "(e)" and insert (d) On page 5, beginning with line 4, strike out all through line 21 on page 12 as follows: "SEC. 2. (a) Section 301 of the Internal Revenue Code of 1954 (relating to distributions of property) is amended by redesignating subsection (f) as subsection (g) and inserting after subsection (e) the following new subsection: "(f) SPECIAL RULES FOR DISTRIBUTIONS OF ANTITRUST STOCK TO CORPORATIONS. OF ANTRITRUST "(1) DEFINITION STOCK. For purposes of this subsection, the term "antitrust stock" means stock received, by a corporation which is a party to a suit described in section 1111(d) (relating to definition of antitrust order), in a distribution made after September 6, 1961, either pursuant to the terms of, or in anticipation of, an antitrust order (as defined in subsection (d) of section 1111). "(2) AMOUNT DISTRIBUTED.-Notwithstanding subsection (b) (1) (but subject to subsection (b) (2)), for purposes of this section the amount of a distribution of antitrust stock received by a corporation shall be the fair market value of such stock. "(3) BASIS.-Notwithstanding subsection (d), the basis of antitrust stock received by a corporation in a distribution to which subsection (a) applies shall be the fair market value of such stock decreased by so much of the deduction for dividends received under the provisions of section 243, 244, or 245 as is, under regulations prescribed by the Secretary or his delegate, attributable to the excess, if any, of "(A) the fair market value of the stock, over "(B) the adjusted basis (in the hands of the distributing corporation immediately before the distribution) of the stock, increased by the amount of gain which is recognized to the distributing corporation by reason of the distribution.' "(b) The amendments made by this section shall apply only with respect to distributions made after the date of the enactment of this Act. "SEC. 3. (a) Section 312 of the Internal Revenue Code of 1954 (relating to the effect on earnings and profits) is amended by adding at the end thereof the following new subsection: "(k) SPECIAL ADJUSTMENT ON DISPOSITION OF ANTITRUST STOCK RECEIVED AS A DIVIDEND. If a corporation received antitrust stock (as defined in section 301 (f)) in a distribution to which section 301 applied, and the amount of the distribution determined under section 301 (f) (2) exceeded the basis of the stock determined under section 301 (f) (3), then proper adjustment shall be made under regulations prescribed by the Secretary or his delegate, to the earnings and profits of such corporation at the time such stock (or other property the basis of which is determined by reference to the basis of such stock) is disposed of by such corporation.' "(b) Subsection (b) of section 535 of the Internal Revenue Code of 1954 (relating to accumulated taxable income) is amended by adding at the end thereof the following new paragraphs: "(9) DISTRIBUTIONS OF DIVESTED STOCK.-There shall be allowed as a deduction the amount of any dividend distribution received of divested stock (as defined in subsection (e) of section 1111), minus the taxes imposed by this subtitle attributable to such receipt, but only if the stock with respect to which the distribution is made was owned by the distributee on September 6, 1961, or was owned by the distributee for at least 2 years prior to the date on which the antitrust order (as defined in subsection (d) of section 1111) was entered. "(10) SPECIAL ADJUSTMENT ON DISPOSITION OF ANTITRUST STOCK RECEIVED AS A DIVIDEND.-If "(A) a corporation received antitrust stock (as defined in section 301 (f)) in a distribution to which section 301 applied, "(B) the amount of the distribution determined under section 301(f) (2) exceeded the basis of the stock determined under section 301 (f) (3), and "(C) paragraph (9) did not apply in respect of such distribution, then proper adjustment shall be made, under regulations prescribed by the Secretary or his delegate, if such stock (or other property the basis of which is determined by reference to the basis of such stock) is sold or exchanged.' "(c) Section 543 of the Internal Revenue Code of 1954 (relating to personal holding company income) is amended (1) by adding at the end of paragraph (1) of subsection (a) the following new sentence: "This paragraph shall not apply to a dividend distribution of divested stock (as defined in subsection (e) of section 1111) but only if the stock with respect to which the distribution is made was owned by the distributee on September 6, 1961, or was owned by the distributee for at least 2 years prior to the date on which the antitrust order (as denied in subsection (d) of section 1111) fiwas entered.'; and (2) by adding at the end thereof the following new subsection: "(d) SPECIAL ADJUSTMENT ON DISPOSITION OF ANTITRUST STOCK RECEIVED AS A DIVIDEND.-If "(1) a corporation received antitrust stock (as defined in section 301 (f)) in a distribution to which section 301 applied, "(2) the amount of the distribution determined under section 301(f) (2) exceeded the basis of the stock determined under section 301 (f) (3), and "(3) such distribution was includible in personal holding company income under subsection (a) (1), then proper adjustment shall be made, under regulations prescribed by the Secretary or his delegate, to amounts includible in personal holding company income under subsection (a) (2) with respect to such stock (or other property the basis of which is determined by reference to the basis of such stock). "(d) Subsection (b) of section 545 of the Internal Revenue Code of 1954 (relating to undistributed personal holding company income) is amended by adding at the end thereof the following new paragraphs: "(10) DISTRIBUTIONS OF DIVESTED STOCK.-There shall be allowed as a deduction the amount of any income attributable to the receipt of a distribution of divested stock (as defined in subsection (e) of section 1111), minus the taxes imposed by this subtitle attributable to such receipt, but only if the stock with respect to which the distribution is made was owned by the distributee on September 6, 1961, or was owned by the distributee for at least 2 years prior to the date on which the antitrust order (as defined in subsection (d) of section 1111) was entered. "(11) SPECIAL ADJUSTMENT ON DISPOSITION OF ANTITRUST STOCK RECEIVED AS A DIVIDEND.-If— "(A) a corporation received antitrust stock (as defined in section 301(f)) in a distribution to which section 301 applied, "(B) the amount of the distribution determined under section 301 (f) (2) exceeded the basis of the stock determined under section 301 (f) (3), and "(C) paragraph (10) did not apply in respect of such distribution, then proper adjustment shall be made, under regulations prescribed by the Secretary or his delegate, if such stock (or other property the basis of which is determined by reference to the basis of such stock) is sold or exchanged.' "(e) Subsection (b) of section 556 of the Internal Revenue Code of 1954 (relating to undistributed foreign personal holding company income) is amended by adding at the end thereof the following new paragraphs: **(7) DISTRIBUTIONS OF DIVESTED STOCK.-There shall be allowed as a deduction the amount of any income attributable to the receipt of a distribution of divested stock (as defined in subsection (e) of section 11111, minus the taxes imposed by this subtitle attributable to such receipt, but only if the stock with respect to which the distribution is made was owned by the distributee on September 6, 1961, or was owned by the distributee for at least 2 years prior to the date on which the antitrust order (as defined in subsection (d) of section 1111) was entered. "(8) SPECIAL ADJUSTMENT ON DISPOSITION OF ANTITRUST STOCK RECEIVED AS A DIVIDEND.—I— "(A) a corporation received antitrust stock (as defined in section 301(f)) in a distribution to which section 301 applied, "(B) the amount of the distribution determined under section 301(f) (2) exceeded the basis of the stock determined under section 301 (f) (3), and (3) paragraph (7) did not apply in respect of such distribution, then proper adjustment shall be made, under regulations prescribed by the Secretary or his delegate, if such stock (or other property the basis of which is determined by reference to the basis of such stock) is sold or exchanged.' "(f) Subsection (b) of section 561 of the Internal Revenue Code of 1954 (relating to deduction for dividends paid) is amended to read as follows: (b) SPECIAL RULES APPLICABLE. (1) In determining the deduction for dividends paid, the rules provided in section 562 (relating to rules applicable in determining dividends eligible for dividends paid deduction) and section 563 (relating to dividends paid after the close of the taxable year) shall be applicable. (2) If a corporation received antitrust stock (as defined in section 301(f)) in a distribution to which section 301 applied and such corporation distributes such stock (or other property the basis of which is determined by reference to this basis of such stock) to its shareholders, proper adjustment shall be made, under regulations prescribed by the Secretary or his delegate, to the amount of the deduction provided for in subsection (a).'" "(g) The amendments made by this section shall apply only with respect to distributions made after the date of the enactment of this Act." It was determined in /Yeas the negative..-Nays. 18 71 The yeas and nays having been heretofore ordered. So the amendment was not agreed to. On motion by Mr. KERR to reconsider the vote disagreeing to the amendment, On motion by Mr. DIRKSEN, The motion to reconsider was laid on the table. No amendment being made, Ordered, That the bill pass to a third reading. The said bill was read the third time. Ordered, That the Secretary notify the House of Representatives thereof. On motion by Mr. KERR to reconsider the vote on the passage of the bill, On motion by Mr. WILLIAMS of Delaware, The motion to reconsider was laid on the table. ORDER FOR ADJOURNMENT UNTIL THURSDAY On motion by Mr. MANSFIELD, and by unanimous consent, Ordered. That when the Senate concludes its business today it adjourn until Thursday next. ORDER FOR ADJOURNMENT FROM THURSDAY NEXT UNTIL FOLLOWING MONDAY On motion by Mr. MANSFIELD, and by unanimous consent, Ordered, That when the Senate adjourns on Thursday next it will be to meet on Monday, January 29, 1962. AUTHORITY FOR SIGNING H.R. 8847 On motion by Mr. MANSFIELD, and by unanimous consent, Ordered, That the Presiding Officer be authorized to sign, during the adjournment following today's session, the enrolled bill (H.R. 8847) to amend the Internal Revenue Code of 1954 so as to provide that a distribution of stock made to an individual (or certain corporations) pursuant to an order enforcing the antitrust laws shall not be treated as a dividend distribution but shall be treated as a return of capital; and to provide that the amount of such a distribution made to a corporation shall be the fair market value of the distribution. GREAT BASIN NATIONAL PARK, NEV. On motion by Mr. MANSFIELD, The Senate proceeded to consider the bill (S. 1760) to establish the Great Basin National Park in Nevada, and for other purposes. ADJOURNMENT On motion by Mr. PROXMIRE, at o'clock and 10 minutes p.m., The Senate, under its order of today. adjourned until Thursday next THURSDAY, JANUARY 25, 1962 The VICE PRESIDENT called the Senate to order, and the Chaplain offered prayer. THE JOURNAL On motion by Mr. MANSFIELD, and by unanimous consent, The reading of the Journal of the proceedings of Tuesday, January 23, 1962, was dispensed with. ENROLLED BILL SIGNED DURING ADJOURNMENT Under the authority of the order of Tuesday last, the President pro tempore signed during the adjournment of the Senate the enrolled bill (H.R. 8847) to amend the Internal Revenue Code of 1954 so as to provide that a distribution of stock made to an individual (or certain corporations) pursuant to an order enforcing the antitrust laws shall not be treated as a dividend distribution but shall be treated as a return of capital; and to provide that the amount of such a distribution made to a corporation shall be the fair market value of the distribution, previously signed by the Speaker of the House of Representatives and found truly enrolled by the Secretary of the Senate. MESSAGE FROM THE HOUSE A message from the House of Representatives, by Mr. Maurer, one of its clerks: Mr. President: The House of Representatives has disagreed to the amendments of the Senate to the bill (HR 2470) to provide for the establishment of the Lincoln Boyhood National Memorial in the State of Indiana, and for other purposes; it asks a conference with the Senate on the disagreeing votes of the two Houses thereon and has appointed Mr. ASPINALL, Mr. RUTHERFORD, Mr. O'BRIEN of New York, Mr. SAYLOR, and Mr. CHENOWETH, managers at the same on its part. The House has passed the bill (H.R. 7927) to adjust postal rates, and for other purposes, in which it requests the concurrence of the Senate. HOUSE BILL REFERRED The bill H.R. 7927, this day received from the House of Representatives for concurrence, was read the first and second times by unanimous consent and re |