to such group as the deposit liability of the respective banks bears to the aggregate deposit liability of all banks in such group, but such advances may be made to a lesser number of such member banks if the aggregate amount of their deposit liability constitutes at least 10 per centum of the entire deposit liability of the member banks within such district. Such banks shall be authorized to distribute the proceeds of such loans to such of their number and in such amount as they may agree upon, but before so doing they shall require such recipient banks to deposit with a suitable trustee, representing the entire group, their individual notes made in favor of the group protected by such collateral security as may be agreed upon. Any Federal reserve bank making such advance shall charge interest or discount thereon at a rate not less than 1 per centum above its discount rate in effect at the time of making such advance. No such note upon which advances are made by a Federal reserve bank under this section shall be eligible under section 16 of this act as collateral security for Federal reserve notes.

"No obligations of any foreign government, individual, partnership, association, or corporation organized under the laws thereof shall be eligible as collateral security for advances under this section.

"Member banks are authorized to obligate themselves in accordance with the provisions of this section."

SEC. 2. The Federal reserve act, as amended, is further amended by adding, immediately after such new section 10 (a), an additional new section reading as follows:

"SEC. 10. (b) Until March 3, 1933, and in exceptional and exigent circumstances, and when any member bank, having a capital of not exceeding $5,000,000, has no further eligible and acceptable assets available to enable it to obtain adequate credit accommodations through rediscounting at the Federal reserve bank or any other method provided by this act other than that provided by section 10 (a), any Federal reserve bank, subject in each case to affirmative action by not less than five members of the Federal Reserve Board, may make advances to such member bank on its time or demand promissory notes secured to the satisfaction of such Federal reserve bank: Provided, That (1) each such note shall bear interest at a rate not less than 1 per centum per annum higher than the highest discount rate in effect at such Federal reserve bank on the date of such note; (2) the Federal Reserve Board may by regulation limit and define the classes of assets which may be accepted as security for advances made under authority of this section; and (3) no note accepted for any. such advance shall be eligible as collateral security for Federal reserve

notes.

"No obligations of any foreign government, individual, partnership, association, or corporation organized under the laws thereof shall be eligible as collateral security for advances under this section."

SEC. 3. The second paragraph of section 16 of the Federal reserve act, as amended, is amended to read as follows:

"Any Federal reserve bank may make application to the local Federal reserve agent for such amount of the Federal reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal reserve agent of collateral in amount equal to the sum of the Federal reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under the provisions of section 13 of this act, or bills of exchange indorsed by a

member bank of any Federal reserve district and purchased under the provisions of section 14 of this act, or bankers' acceptances purchased under the provisions of said section 14, or gold or gold certificates: Provided, however, That until March 3, 1933, should the Federal Reserve Board deem it in the public interest, it may, upon the affirmative vote of not less than a majority of its members, authorize the Federal reserve banks to offer, and the Federal reserve agents to accept, as such collateral security, direct obligations of the United States. On March 3, 1933, or sooner should the Federal Reserve Board so decide, such authorization shall terminate and such obligations of the United States be retired as security for Federal reserve notes. In no event shall such collateral security be less than the amount of Federal reserve notes applied for. The Federal reserve agent shall each day notify the Federal Reserve Board of all issues and withdrawals of Federal reserve notes to and by the Federal reserve bank to which he is accredited. The said Federal Reserve Board may at any time call upon a Federal reserve bank for additional security to protect the Federal reserve notes issued to it."

And the Senate agree to the same.

THE WALES ISLAND PACKING CO.

LETTER FROM THE ASSISTANT CLERK OF THE COURT OF CLAIMS OF THE UNITED STATES TRANSMITTING CERTIFIED COPIES OF THE SPECIAL FINDINGS OF FACT AND OPINION OF THE COURT BY GREEN, J., AND OF THE COURT'S OPINION BY GREEN, J., OVERRULING THE DEFENDANT'S MOTION FOR A NEW TRIAL IN THE CASE OF THE WALES ISLAND PACKING CO. AGAINST THE UNITED STATES

FEBRUARY 24 (calendar day, FEBRUARY 25), 1932.-Referred to the Committee on Foreign Relations and ordered to be printed

COURT OF CLAIMS OF THE UNITED STATES, Washington, D. C., February 11, 1932. The Wales Island Packing Co. v. The United States. No. 17340. Congressional

Hon. CHARLES CURTIS,

President United States Senate,

Washington, D. C.

DEAR SIR: Pursuant to the order of the court, I am inclosing herewith certified copies of the special findings of fact and opinion of the court by Green, J., and of the court's opinion by Green, J., overruling the defendant's motion for a new trial, in the above-entitled cause. This case was referred to this court by resolution of the United States Senate under the act of March 3, 1911, known as the Judicial Code.

Respectfully,

F. C. KLEINSCHMIDT,
Assistant Clerk.

Court of Claims of the United States. The Wales Island Packing Co. v. The United States. Congressional, No. 17340. (Decided February 9, 1931.)

Mr. William D. Harris for plaintiff. Messrs. Clarence W. De Knight, Robert T. Scott, and Palmer, Davis & Scott were on the briefs.

Mr. William W. Scott, with whom was Mr. Assistant Attorney General Charles B. Rugg, for defendant.

This case having been heard by the Court of Claims, the court, upon the evidence adduced, makes the following

SPECIAL FINDINGS OF FACT

Plaintiff, the Wales Island Packing Co., is a corporation duly organized under the laws of the State of New York having its place of business in the city of New York and its entire capital stock is owned by American citizens.

The business of the company was catching, curing, and canning salmon and other fish, which for one and one-half fishing seasons immediately prior to the findings of the Alaskan Boundary Tribunal had been carried on, as to curing and canning fish, at its factory and plant established for that purpose on Wales Island, in Portland Canal, on the southeastern coast of Alaska, and as to catching fish in the adjacent or near-by waters or fishing grounds. The establishment of the company was complete for the prosecution of a successful business. The main building was 320 by 60 feet; warehouse, 36 by 56 feet; Chinese quarters, 26 by 60 feet; mess house, 24 by 40 feet; native quarters, 24 by 40 feet; store, 24 by 40 feet; and superintendent's residence, 14 by 24 feet. There were other buildings, occupied by natives. The machinery was all of the latest patterns and the general equipment calculated for a large pack. This site was not only the only site suitable for such purposes in the entire neighborhood on the American side of the boundary as then established but also most conveniently located with reference to the best fishing grounds and most peculiarly well fitted by its natural advantages for the purpose of a cannery.

The fishing grounds proved to be practically inexhaustible. The "Sockeye" salmon, which command the highest market prices, were found to abound in that neighborhood, and the company was insured a large and permanent supply of this most valuable species of salmon. The natural conditions surrounding this site on Wales Island gave it a peculiar value. It had at hand a convenient and sufficient supply of fish. It was free from rivalry or interference on the part of other factories, because there was no other available site for a factory in that neighborhood, and the factories on the other side of Point Fox were unable to extend their operations beyond that point. This site had practically the exclusive right to enjoy the entire fishing resources of the neighborhood on the United States side of the boundary line as there established. Apart from these exclusive advantages this site offered further advantage of being within easy reach of the regularly traveled steamer routes along the coast, giving ready access to it at all times.

Such steps were taken as were necessary under the laws of the United States regulating the acquisition of factory sites in Alaska to perfect the title of the company to the land, and the factory and equipment of the company for the purposes of its business then established.

The plant of the company was constructed on this island in the year 1902, and was outfitted, for the first season, to pack 30,000 cases, but owing to the delay in completing the plant and to the lateness of the season only 16,000 cases were put upon the market that year. During the second season, in the following year, the capacity of the plant was increased and its output for that season was 35,000 cases. Its latest capacity was for 50,000 cases, and in view of its equipment, including the proposed hatchery, which was never built, and the abundance of its fisheries a regular output up to its full capacity was assured.

The United States Government has asserted title and sovereignty over this island from the time of the purchase of Alaska from Russia down to the date of the decision of the Alaskan Boundary Tribunal.

In September, 1896, the War Department, under the authority of Congress, caused a storehouse to be built upon Wales Island, and