PUBLIC UTILITY DISTRICT NO. 1, OF COWLITZ COUNTY, WASH. JULY 7, 1949.-Committed to the Committee of the Whole House and ordered to be printed Mr. JENNINGS, from the Committee on the Judiciary, submitted the following REPORT [To accompany H. R. 3193] The Committee on the Judiciary to whom was referred the bill (H. R. 3193) for the relief of Public Utility District No. 1, of Cowlitz County, Wash., having considered the same, report favorably thereon without amendment and recommend that the bill do pass. The facts will be found fully set forth in House Report No. 365, Eightieth Congress, first session, which is appended hereto and made a part of this report. This bill passed the House and Senate in the Eightieth Congress and was vetoed by the President. However, the committee has received information that the President was not presented with all the facts and now will receive it with an open mind. Therefore, your committee recommend favorable consideration to the bill. [H. Ropt. No. 365, 80th Cong., 1st sess.] The purpose of the proposed legislation is to pay the sum of $62,299.38 to the Cowlitz County, Wash., Public Utility District No. 1, in full settlement of all claims against the United States for a fee paid by the said public utility district to the clerk of the United States District Court for the Western District of Washington, Southern Division, in cause No. 8592, pursuant to the provision of paragraph 8, section 555, title 28, United States Code Annotated, as then in effect. STATEMENT OF FACTS In November of 1940 the Cowlitz County Public Utility District was directed to pay the sum of $62,299.38 to the clerk of the United States District Court for the Western District of Washington, Southern Division, when the district court entered a decree of appropriation for the acquisition of electrical properties theretofore operated by the Washington Gas & Electric Co. in Cowlitz County. Subsequently the matter was taken up before the Judiciary Committees of the United States House and Senate. The Judiciary Committee for each House rendered a report finding that the fee chargeable under the old law was entirely out of line with the services rendered by the clerk's office. The payment by the Cowlitz County Public Utility District was specifically referred to by both the House and Senate Judiciary Committees as illustrating the unfairness of the old law, and the committee of each House emphasized the need of correcting the law in order to eliminate the unfairness which would otherwise result in pending public utility district condemnation cases in the State of Washington. It was the basis of these reports that paragraph 8 of the old law which provided as follows was repealed, and the public utility districts were thus relieved from the obligation of paying the 1-percent fee: "For receiving, keeping, and paying out money in pursuance of any statute or order of court, including case bail or bond or securities authorized by law to be deposited in lieu of other security, 1 per centum of the amount so received, kept, and paid out, or of the face value of such bonds or securities." At the time the law was changed the Judiciary Committee of the House submitted the following report pertaining to section 2 thereof: The "This section proposes to repeal that provision of existing law which imposes a fee of 1 percent to be collected by the clerk of the district court on receiving, keeping, and paying out money. Hearings were conducted on the bill proposed to exempt States and agencies thereof from payment of the 1-percent fee. attention of the committee was directed particularly to a situation existing in the State of Washington where public utilities districts are faced with the expense of paying the 1-percent fee to the clerk of the district court in the acquisition of substantial properties. In one instance, where the jury determined the value of the property involved to be approximately $6,000,000 and made an award in that amount, the fee will amount to some $62,000. "The service rendered by the clerk in such cases is nominal and not proportionate to the fee charged. The compensation of the clerk is in no way dependent upon the fees collected by him, clerks of the district courts having been put on a salary basis by the act of February 26, 1919. Your committee was of the opinion that, inasmuch as the fee imposed in matters of this kind is out of all proportion to the service performed by the clerk and because of the fact that the fee is not received as compensation by the clerk since he is on a salary basis, the 1-percent fee charged by the clerk for receiving, keeping, and paying out of money should be abolished." The Cowlitz County Public Utility District was the only district in the State of Washington which was required to pay the enormous fee required under the old law. The unfairness and inequity of this situation was immediately recognized by both House and Senate and was immediately repealed with specific reference having been made in both the Judiciary Committee reports to the Cowlitz County case. It is the belief, that if the matter had been presented to the committee at that time, and they had known that the fee had already been paid, they would have not only remedied all future situations as they did by repealing the old act, but that they would have gone further and remedied the Cowlitz County case which they pointed to as showing the inequity and as being the reason for the repeal. The Cowlitz County Public Utility District No. 1 was required to pay out $62,299.38 for clerk's fee to the United States District Court for the Western District of Washington under a manifestly antiquated and unfair law which required this payment from one public body to another. The law was repealed by specific reference to the Cowlitz County case which was the only public utility required to pay this fee, leaving an inequitable situation by which one public utility district was discriminated against to the extent of $62,299.38, and which can only be remedied by the enactment of this legislation. Therefore, your committee is unanimously of the opinion that this is a meritorious claim and should be paid, and recommend favorable consideration to the bill. Appended hereto is report from the Administrative Office of the United States Courts, together with House Report No. 1428, Seventy-seventh Congress, first session, Public Law No. 467, Seventy-seventh Congress, repealing the law providing for the payment of fees to clerks of the courts and other pertinent evidence. ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS, Hon. EARL C. MICHENER, Chairman, Committee on the Judiciary, House of Representatives, Washington, D. C. DEAR MR. CHAIRMAN: This is in reply to your request of April 8, 1947, for a report with regard to H. R. 2693 entitled "A bill for the relief of Public Utility District Numbered 1, of Cowlitz County, Washington." For many years prior to March 3, 1942, clerks of United States district courts were required by statute to collect a fee of 1 percent of the amount involved for receiving, keeping, and paying out money in pursuance of any statute or order of court. All money so received was covered into the Treasury as miscellaneous receipts. During the first session of the Seventy-seventh Congress the House Judiciary Committee reported a bill (H. R. 5880) repealing the statute requiring the 1percent fee, which was enacted as Public Law 467 of the Seventy-seventh ConThe reasons which prompted the gress (56 Stat. 122), approved March 3, 1942. committee's action are stated on page 2 of House Report No. 1428, Seventyseventh Congress, under the heading "Section 2" and the text of the statute A copy of this report is enclosed herewith. repealed is set out on page 3. The records of this office, including correspondence with the clerk of the court, disclose that in cause 8592 entitled "Public Utility District No. 1 of Cowlitz County, a municipa. corporation, petitioner, v. Washington Gas & Electric Company, a corporation, and the Chase National Bank of the City of New York, and Columbia Electrical Development Company, a corporation, respondents," there was paid to the clerk of the United States District Court for the Western District of Washington The clerk acting for the respondents, Washington Gas & Electric Co., and the Chase National Bank of the City of New York, a sum in excess of $6,000,000. pursuant to the statute collected a fee of $62,299.38 upon this deposit in the registry of the court which in regular course was covered into the United States Treasury in September 1941. H. R. 2693 authorizes and directs the Secretary of the Treasury to pay to the public utility district a sum equal to the amount of the clerk's fee referred to, namely $62,299.38. Whether the public utility district should be accorded this relief is a matter of legislative policy for Congress to decide. Although Congress, for sufficient reasons, has since seen fit to repeal the statute under which the fee I am not was charged, at the time the money was collected the law was in full force and effect and as I have stated had been in effect for a good many years. informed of any other claims which have been made for refunds of money paid "rior to repeal of the statute. Sincerely yours. HENRY P. CHANDLER. AFFIDAVIT OF W. A. CARDWELL STATE OF WASHINGTON, County of Cowlitz, ss: W. A. Cardwell, being first duly sworn on oath, deposes and says: That he is now and at all times herein mentioned has been the duly elected, qualified, and acting president of Public Utility District No. 1 of Cowlitz County, Wash. This district is a county-wide municipal corporation, organized pursuant to chapter 1, Laws of Washington, 1931, as amended by chapters 182 and 245, Laws of Washington, 1941, and chapter 143, Laws of Washington, 1945; that on November 26, 1940, affiant, together with the two other commissioners of this public-utility district, caused to be paid to the clerk of the United States District Court for the Western District of Washington, Southern Division, the sum of $62,299.38 in that certain proceeding in eminent domain entitled "Public Utility District No. 1 of Cowlitz County v. Washington Gas & Electric Company et al.," being cause No. 3592 in the records and files of this court; that such payment was made in connection with the entry on that date of a decree of appropriation and amounted to 1 percent of the payments made into court by the district for electrical properties and facilities acquired from the defendants in the proceeding pursuant to such decree; that this payment was made by the district, and accepted by the clerk, pursuant to paragraph 8 of section 8 of the act entitled "An act to provide fees to be charged by clerks of the district courts of the United States," approved February 11, 1925 (43 Stat. 857; U. S. C., 1934 ed, title 28, sec. 555), which was repealed by the act entitled "An act to abolish ecrtain fees charged by clerks of the district courts; and to exempt defendants in condemnation proceedings from the payment of filing fees in certain instances," approved by the Congress on March 3, 1942. W. A. CARDWELL. Subscribed and sworn to before me this 11th day of April 1947. [SEAL] GEORGIA BARNES, Notary Public in and for the State of Washington. UNITED STATES DISTRICT Court, Spokane 7, April 11, 1947. Mr. EARL COLE, Commissioner, care of Public Utility District No. 1 of Cowlitz County, DEAR SIR: This is to advise you that no public utility district has paid any fee in any condemnation case in this district court pursuant to paragraph 8 of title 28, U. S. C. A., section 555, which was repealed in 1942. Yours very truly, ARAM A. LAFRAMBOISE, Clerk. UNITED STATES DISTRICT Court, In re: Cause No. 8592-Public Utility District No. 1 of Cowlitz County, Wash., Petitioner v. Washington Gas and Electric Company et al., respondents. ELMORE WHITEHURST, Esq., Assistant Director, Administrative Office, United States Courts, Supreme Court Building, Washington, D. C. DEAR MR. WHITEHURST: Your letter of November 3, 1942, is acknowledged. In the trial of the above cause, the jury, on April 19, 1940, returned a verdict awarding the respondents Washington Gas & Electric Co., a corporation, and the Chase National Bank of the City of New York, a corporation, $5,922,556, and a verdict awarding the respondent Columbia Electric Development Co., a corporation, $88,950. On May 11, 1940, judgment was entered on the verdicts in the above amounts "together with interest thereon at the rate of 6 percent per annum from the 19th day of April 1940, together with such costs and clerk's fees, if any, as are and may be taxable against said petitioner * * The record shows the total amounts deposited with the clerk, United States district court, by the. National Bank of Washington, as trustee, as follows: For the benefit of the respondent Washington Gas & Electric Co., and the Chase National Bank of the city of New York, their respective successors, with costs and accrued interest thereon-$6,138,873.15; for the benefit of the respondent Columbia Electric Development Co., its successor, with costs and accrued interest thereon$92,205.23; and as and for commissions of the clerk of this court for receiving, keeping, and paying out the above sums, exclusive of the costs referred to$62,299.38, making a total of $6,293,377.76. Costs in the amount of $1,140.40 were taxed June 8, 1940, which deducted from $6,231.078.38 (amount deposited for the benefit of respondents) leaves a total of $6,229,937.98 on which amount the clerk's commission of 1 percent was computed. * * In answer to the inquiry contained in the third paragraph of your letter, I quote, in part, from the order appointing trustee and prescribing certain duties to be performed by it entered November 18, 1940: "* it is ordered, that the National Bank of Washington, Tacoma, Wash., be and it is hereby appointed trustee to act as a depository in connection with certain phases of this proceeding and to perform the following duties: (1) The trustee shall receive the sum of $6,300,000 to be deposited with it by the National Bank of Commerce of Seattle, representative of the purchasers of revenue bonds issued by the petitioner pursuant to its Resolution No. 45 as amended, and shall not be required to provide collateral for such deposit. * * The petition in eminent domain in this cause was filed in the Superior Court for Cowlitz County, State of Washington, March 30, 1938, and on petition of respondents, an order of removal to the United States District Court, Western District of Washington, Southern Division, was entered April 18, 1938, on the grounds of diversity of citizenship. On November 14, 1938, a motion to remand was denied and the decree of public use and necessity was entered April 1, 1939. The trial of the cause commenced January 30, 1940, and the verdicts above-mentioned were returned and filed April 19, 1940. On March 12, 1941, the clerk deposited the amount of $62,299.38 in the National Bank of Washington, Tacoma, as shown by certificate of deposit No. 73-T. This commission was reported as earning from individuals and corporations and on transfer voucher No. T-3 dated March 31, 1941, in the clerk's report for the quarter ending March 31, 1941. Trusting the above information is that required by you, I am, Sincerely yours, JUDSON W. SHORETT, Clerk. In the District Court of the United States for the Western District of Washington, Southern Division. Public Utility District No. 1 of Cowlitz County, Washington, a municipal corporation, petitioner, v. Washington Gas and Electric Company, a corporation, The Chase National Bank of the City of New York, a corporation, and Columbia Electric Development Company, a corporation, respondents. No. 8592 ORDER TO PAY CLERK'S COMMISSION It appearing to the court that there has heretofore been paid to the clerk of the above-entitled court, in the above-entitled cause, the sum of $6,293,377.76, in full satisfaction of the judgments, interest, and costs therein; And it further appearing that said sum was received, deposited, kept, and has now been disbursed by order of the above-entitled court, save and except the sum of $62,299.38, which said sum was paid to the clerk as and for poundage or clerk's commission of 1 percent upon the moneys received, kept, and disbursed by him, in accordance with United States Code, title 28, section 555, paragraph 8; And it further appearing that said sum has now been earned by the clerk of the above-entitled court and should be withdrawn from the registry account of the United States district court and paid to the clerk of said court for deposit to his trust fund account with the Treasurer of the United States as a part of his emoluments; and the court being fully advised: It is, therefore, Ordered, That the clerk of the above-entitled court pay from the sums heretofore deposited with the Treasurer of the United States to the credit of the United States District Court for the Western District of Washington to the clerk of the United States District Court for the Western District of Washington, the sum of $62,299.38, as and for an emolument due the clerk for the receiving, keeping, and paying out of the sum of $6,229,937.98. Done in open court this 11th day of March 1941. Presented by: LLOYD L. BLACK, United States District Judge. MILLARD P. THOMAS. E. K. MURRAY, Attorney for Petitioner. HAYDEN, METZGER & BLAIR, [H. Rept. No. 1428, 77th Cong., 1st sess. The Committee on the Judiciary to whom was referred the bill (H. R. 5880) to abolish certain fees charged by clerks of the district courts, and to exempt defendants in condemnation proceedings from the payment of filing fees in certain instances, having considered the same, report favorably thereon to the House and recommend that the bill do pass. There are two purposes of the bill: First, to exempt defendants from the payment of filing fees in condemnation proceedings brought by the United States, and second, to repeal the existing provision of law imposing a fee of 1 percent to be collected by the clerk, on receiving, keeping, and paying out money. H. Repts., 81-1, vol. 5- -11 |