Page:United States Statutes at Large Volume 70.djvu/458

 402

[70 ST A T.

PUBLIC LAW 6 2 8 - J U N E 29, 1956

carrying out the study and investigation required by this section. Each such report shall be printed as a House document of the session of the Congress to which the report is made. (e) FUNDS FOR STUDY AND INVESTIGATION.—There are hereby au-

thorized to be appropriated out of the Highway Trust Fund such sums as may be necessary to enable the Secretary of Commerce to carry out the provisions of this section. SEC. 211. EFFECTIVE DATE OF TITLE. This title shall take effect on the date of its enactment, except that the amendments made by sections 202, 203, 204, and 205 shall take effect on July 1, 1956.

TITLE III—SEPARABILITY SEC. 301. SEPARABILITY. If any section, subsection, or other provision of this Act or the application thereof to any person or circumstance is held invalid, the remainder of this Act and the application of such section, subsection, or other provision to other persons or circumstances shall not be affected thereby. Approved June 29, 1956. Public Law 628 June 29, 1956 [H. R. 7247]

CHAPTER

463

AN ACT Relating to recognition of gain or loss in certain railroad reorganizations and to amend section 108(b) of the Internal Revenue Code of 1954.

Be it enacted by the Senate and House of Representatives of the minu/^^^'^^"* f7mj5e6? States of America in Congress assembled, That part IV of sub68A*Stat. 121. chapter C of chapter 1 of the Internal Revenue Code of 1954 is 26 USC 371-373. j^^j-g^^y amended by adding at the end thereof the following new section: "SEC. 374. GAIN OR LOSS NOT RECOGNIZED IN CERTAIN RAILROAD REORGANIZATIONS. " (a) EXCHANGES BY CORPORATIONS.— "(1) NONRECOGNITION or GAIN OR LOSS.—No gain or loss shall

be recognized if property of a railroad corporation, as defined in section 77(m) of the Bankruptcy Act (49 Stat. 922; 11 U.S.C. 205), is transferred after July 31, 1955, in pursuance of an order of the court having jurisdiction of such corporation— " (A) in a receivership proceeding, or " (B) in a proceeding under section 77 of the Bankruptcy Act, to another railroad corporation (as defined in section 77(m) of the Bankruptcy Act) organized or made use of to effectuate a plan of reorganization approved by the court in such proceeding, in exchange solely for stock or securities in such other railroad corporation. "(2)

GAIN FROM EXCHANGES NOT SOLELY IN KIND.—If an

ex-

change would be within the provisions of paragraph (1) if it were not for the fact that the property received in exchange consists not only of stock or securities permitted by paragraph (1) to be received without the recognition of gain, but also of other property or money, then—

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