office at San Francisco, Calif.

The shipment consisted of 50,000 stamps of the 60-cent denomination, 50,000 stamps of the $1.44 denomination, 10,000 stamps of the $5 denomination, and 100 stamps of the $500 denomination. The stamps were unwrapped and counted by Mrs. Acuff and found to agree with the invoice. Pending verification of the count, the wrappings were preserved on top of one of the safes, of which there were three in the Santa Rosa office. In storing the stamps, the Santa Rosa office keeps those of large denominations, used for evidencing tax payment on tank lot withdrawals, in a separate manila envelope. To complete storage of the shipment in question, this envelope was taken from the safe for insertion of the $500 denomination stamps, consisting of two sheets of 50 each The prior contents of the envelope consisted of 31 stamps of the $3,000 denomination. All evidence points to the fact that through some quirk of fate the envelope was associated with the shipment wrappings which were deposited in a waste basket after verification of their contents. Early the next morning the janitor dumped the contents of the office waste baskets into a pasteboard carton, without examination of the contents, and incinerated the carton in the building furnace.

Later in the morning of April 7, 1948, the office had an order for a $3,000 denomination of stamp and, not being able to locate the envelope, Mrs. Acuff and Deputy Collector, Walter J. Butler went to the furnace room to examine the waste-paper collection, but which in the meantime had been incinerated. The ashes were raked out, but all paper had been completely consumed by fire. This stamp loss was thoroughly investigated by Special Intelligence Agent Anthony Sherman with the conclusion that the stamps were destroyed as stated. Shortly after the stamp loss was discovered the Santa Rosa office was checked and examined by Supervisor of Accounts and Collections Frank L. Blote, who found the stamp accounts in perfect condition, except for the shortage of 100 stamps of the $500 denomination and 31 stamps of the $3,000 denomination. There was no evidence of the safes having been tampered with or in fact of any theft. Acting District Supervisor J. F. Corridan, Alcohol Tax Unit, will have all $500 and $3,000 wine stamps presented for cancellation in his district checked against purchase orders, as a cautionary measure.

This department is satisfied that the Government has suffered no loss in this case and recommends that bill H. R. 6562 for the relief of James G. Smyth be favorably considered.

The committee is unable to reconcile these two reports. Public Law No. 321 of the Eightieth Congress is as follows:

That the General Accounting Office is authorized, after consideration of the pertinent findings and if in concurrence with the determinations and recommendations of the head of the department or independent establishment concerned, to relieve any disbursing or other accountable officer or agent or former disbursing or other accountable officer or agent of any such department or independent establishment of the Government charged with responsibility on account of physical loss or deficiency of Government funds, vouchers, records, checks, securities, or papers in his charge, if the head of the department or independent establishment determines (1) that such loss or deficiency occurred while such officer or agent was acting in the discharge of his official duties, or that such loss or deficiency occurred by reason of the act or omission of a subordinate of such officer or agent; and (2) that such loss or deficiency occurred without fault or negligence on the part of such officer or agent. This Act shall be applicable only to the actual physical loss or deficiency of Government funds, vouchers, records, checks, securities, or papers, and shall not include deficiencies in the accounts of such officers or agents resulting from illegal or erroneous payments. And relief has been given many Government employees under this law. However, there is no law to give relief to private business and it would appear to the committee that it is discriminatory for the departments to give relief to Federal employees and to oppose legislation which passed the Congress for the relief of private business.

The report in connection with relief for James G. Smyth, collector for the Bureau of Internal Revenue for the West California District, is not consistent with the report and veto on H. R. 1036 for the relief of the R. C. Owen Tobacco Co. Also, in this report it is stated that the

Department was satisfied that the Government had suffered no loss in this case and recommended that it be given favorable consideration. The Committee on the Judiciary is unable to see where the Government had any loss in the R. C. Owen Tobacco Co. claim. The amount in which the Treasury Department desires to relieve Mr. Smyth is $143,000 while the Owen claim amounts to only $8,437.98. The Treasury Department also states that to give the Owens relief would be giving special treatment in discrimination against taxpayers generally. It would appear that the same situation should apply to Mr. Smyth, the internal revenue collector of California. However, the Department doesn't appear to feel that way about the matter.

H. Doc. 161, 81st Cong., 1st sess.

MESSAGE FROM THE PRESIDENT OF THE UNITED STATES, RETURNING WITHOUT APPROVAL A BILL (H. R. 1036) for the RELIEF OF R. C. OWEN, R. C. OWEN, JR., AND ROY OWEN

To the House of Representatives:

I return herewith, without my approval, the enrolled bill H. R. 1036) for the relief of R. C. Owen, R. C. Owen, Jr., and Roy Owen.

The bill provides for payment of the sum of $8,437.98, to 1.. C. Owen, R. C. Owen, Jr., and Roy Owen, former partners doing business as R. C. Owen, of Gallatin, Tenn., which sum represents the amount they paid to the United States for internal-revenue tobacco stamps, which stamps were completely destroyed on December 24, 1945, when a fire destroyed claimants' factory, together with the equipment, tobacco, and tobacco stamps therein.

It appears that claimants' firm was a dealer in leaf tobacco and also a manufacturer of certain tobacco products in Gallatin, Tenn. On the night of December 24, 1945, one of the buildings belonging to the firm, part of which was used as a factory and part as a warehouse was destroyed by fire. According to affidavits submitted by R. C. Owen, Jr., as a member of the firm, the chief of police, and the assistant chief of the fire department, the building, including its contents, was a complete loss. The firm filed a claim with the Bureau of Internal Revenue for the value of the tobacco stamps allegedly on hand in the factory at the time of the fire and therefore destroyed by it, but this claim was disapproved by that Bureau on the ground that under existing law refund could be made only where the stamps were submitted to the Bureau in a recognizable condition or were destroyed under the supervision of a deputy collector.

A person who loses currency through destruction by fire may recover such loss only to the extent that such currency can be submitted in a recognizable form for replacement. Such rule is necessary to protect the Government against fraudulent claims. A similar situation prevails with regard to postage stamps. The Government does not assume the obligation of an insurer at the time of selling internal-revenue stamps to a taxpayer for subsequent use in payment of a particular excise tax. Enactment of the bill would grant relief to this firm which is not granted to other persons similarly situated, and such special treatment would be discriminatory against taxpayers generally.

The regulations which prohibit refunds in cases of this type were promulgated with the view to preventing frauds upon the Government. The situation of claimant firm is not different from that of a number of other persons who have been refused refunds because of their inability to comply with the regulations pertaining to such refunds. The Government cannot make refund in the absence of satisfactory proof that the stamps in question were actually destroyed. Accordingly, I am unable to approve the bill.

THE WHITE HOUSE, April 21, 1949.

HARRY S. TRUMAN.

H. R. 1036

EIGHTY-FIRST CONGRESS OF THE UNITED STATES OF AMERICA AT THE FIRST SESSION, BEGUN AND HELD AT THE CITY OF WASHington on MONDAY, THE Third Day of January, ONE THOUSAND NINE HUNDRED AND FORTY-NINE

AN ACT For the relief of R. C. Owen, R. C. Owen, Junior, and Roy Owen

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury is authorized and directed to pay, out of any money in the Treasury not otherwise appropriated, to R. C. Owen, R. C. Owen, Junior, and Roy Owen, former partners doing business as R. C. Owen, of Gallatin, Tennessee, the sum of $8,437.98. This sum represents the amount which they paid to the United States for internal revenue tobacco stamps, which stamps were completely destroyed on December 24, 1945, when a fire destroyed the said tobacco factory of said partners (registered as "Tobacco Factory Number 102, District of Tennessee"), together with the equipment, tobacco, and tobacco stamps therein: Provided, That no part of the amount appropriated in this Act in excess of 10 per centum thereof shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not exceeding $1,000.

[Endorsement on back of bill:]

SAM RAYBURN,

Speaker of the House of Representatives.
KENNETH MCKELLAR,

President of the Senate pro tempore.

I certify that this Act originated in the House of Representatives.

RALPH R. ROBERTS, Clerk.

1st Session

No. 612

CREATING A JOINT COMMITTEE ON LOBBYING
ACTIVITIES

MAY 18, 1949.-Referred to the House Calendar and ordered to be printed

Mr. SABATH, from the Committee on Rules, submitted the following

REPORT

[To accompany H. Con. Res. 62]

The Committee on Rules, having had under consideration House Concurrent Resolution 62, report the same to the House with the ecommendation that the resolution do pass.

O