52 STAT.] 75TH CONG. , 3D SESS.-CHS. 311, 312-JUNE 1, 1938 on construction loans, and all other facts deemed pertinent. If the contractor shall be willing to accept such determination and receive payment for the amount determined by the Commission to be a fair adjustment of such differences, the Commission is authorized and directed, concurrently with the dismissal of any suit based upon the alleged termination or breach of such contract filed by such contractor with prejudice and without costs, to enter into and execute a settle- ment agreement with such contractor, wherein such contractor shall release the United States from any and all claims arising from such contractor's mail contract: Provided, That the Attorney General of the United States shall review such settlement agreement, and if he is dissatisfied with such finding shall notify the Commission and the contractor in writing within sixty days and upon such notice the settlement agreement shall become null and void; otherwis e thecon- tractor shall be paid any sum of money due him under such settle- ment agreement out of such appropriation as the Congress may here- after provide for this purpose from funds controlled by the Commis- sion or from the general funds of the Treasury: Provided, That if any sum of money is payable to the contractor under the terms of any settlement agreement made pursuant to this subsection, such sums shall be applied (a) as a credit upon any amount owing by the con- tractor to the United States on any loan agreement entered into under section 11 of the Merchant Marine Act of 1920, as amended, or upon unpaid ship sales mortgage notes, (b) Federal taxes of the contractor due or to become due for the taxable year in which the settlement is made, and (c) on any other indebtedness of the contractor to the United States. If any such sums are applied as a credit as aforesaid, then the Comptroller General of the United States shall execute a dis- charge of the amount of such debts satisfied thereby. Nothing herein shall affect any right which such contractor may now have to main- tain a suit arising out of such contract against the United States in the Court of Claims unless such suit is dismissed as provided herein: Providedfurther, That nothing herein shall be construed to affect any right or defense of any party in any suit pending in the Court of Claims: And provided further, That the enactment of this legislation shall not be considered or construed by the Commission or by any court as a legislative interpretation in favor of the validity or legality of any alleged contract involved in, or the basis of any controversy or litigation, adjustment of which is permitted by this subsection." Approved, June 1, 1938. [CHAPTER 312] AN ACT To amend section 5 of an Act entitled "An Act to provide for the construction and maintenance of roads, the establishment and maintenance of schools, and the care and support of insane persons in the district of Alaska, and for other purposes", approved January 27, 1905 (33 Stat. 616). Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the last three sentences of section 5 of the Act entitled "An Act to provide for the construction and maintenance of roads, the establishment and mainte- nance of schools, and the care and support of insane persons in the district of Alaska, and for other purposes", approved January 27, 1905 (33 Stat. 616), are hereby amended to read as follows: "The Governor shall assign and set apart to each school district established and organized under the provisions of this section a sum, not less than $300 nor more than $1,000, in proportion to the number 607 Proviso. Review by Attor- ney General; nullifica- tion of agreement. Payment, if satis- factory. Provisos. Application of sums payable to contractor as credit on construc- tion loan, etc. 41 Stat. 993. 46U. S.C.§870; Supp. III, § 870. Federal taxes. Any other indebted- ness to United States. Right or defense in any suit pending in Court of Claims. Not to be construed as validating any alleged contract in- volved, etc. June 1, 1938 [H. R. 9722] [Public, No. 574] Alaska, schools. 33 Stat. 619. 48 U.S .C.§168. Funds for construc- tion, etc.
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