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in Juneau, Alaska, to the Alaska Native Brotherhood and/or Sisterhood, Juneau (Alaska) Camp.
For the reasons hereinafter stated, I recommend that H. R. 3494 be enacted.
The bill, if enacted, would authorize the Secretary of the Interior to transfer without charge a certain described building in Jeneau, Alaska, now owned by the Alaska Service, to the Alaska Native Brotherhood and/or Sisterhood, Juneau (Alaska) Camp. The building in question was purchased in 1942 from the Board of National Missions of the Presbyterian Church in the United States of America for $300 for use by the Alaska Native Service in connection with the educational and relief programs for the natives of Juneau and to reduce the fire hazard. As native homes were built against both sides and back of the building, it was moved after its purchase by the Government to a tract of filled-in tideland. It is no longer needed by the Government as the purpose for which it was acquired has been accomplisher. It is now being used by the Alaska Native Sisterhood under a use permit issued May 9, 1946.
In view of the fact that the building is no longer needed in connection with the activities of the Alaska Native Service, it is recommended that the bill be favorably considered. As the Alaska Native Brotherhood and the Alaska Native Sisterhood are separate organizations and as there is no indication that the Alaska Native Brotherhood is interested in utilizing the building, it is suggested that the bill be amended by striking the words "Brotherhood and/or" appearing in line 5 thereof.
The Bureau of the Budget has advised me that there is no objection to the submission of this report to your committee. Sincerely yours,
Oscar L. CHAPMAN,
Under Secretary of the Interior. At hearings held on this bill, a representative of the Bureau of Indian Affairs stated that the amendment suggested by the Department in its report has been found to be unnecessary.
The Committee on Public Lands unanimously recommends that H. R. 3494 be enacted.
KNICKERBOCKER INSURANCE CO. OF NEW YORK AND
ATLAS ASSURANCE CO., LTD.
JULY 7, 1949.-Committed to the Committee of the Whole House and ordered.
to be printed
Mr. LANE, from the Committee on the Judiciary, submitted the
(To accompany H. R. 3726
The Committee on the Judiciary, to whom was referred the bill (H. R. 3726) for the relief of Knickerbocker Insurance Co. of New York and Atlas Assurance Co., Ltd., having considered the same, report favorably thereon without amendment and recommend that the
bill do pass.
The purpose of the proposed legislation is to pay the sum of $2,639.07 to the Knickerbocker Insurance Co. of New York and to pay the sum of $18,473.48 to Atlas Assurance Co., Ltd., in full settlement of all claims against the United States resulting from property damage to the west Dallas (Tex.) works of the Texas Co. caused by the crash of a B-29 Army bomber into the said plant on October 8, 1944.
STATEMENT OF FACTS
It appears that on October 8, 1944, while flying in formation over Dallas, Tex., on an authorized training mission, a B-29 aircraft attempted to alter its position in the formation. While so doing, the plane went into a steep dive which continued for about 3,000 feet. It then flipped over on its back and started to spin.
The plane crashed, inverted, on the property of the west Dallas refinery of the Texas Co., completely destroying the carpenter shop building and its contents, partly destroying the stockhouse building and its contents, damaging five storage tanks and destroying their contents, and damaging or destroying power and telephone lines and miscellaneous other items.
The Secretary of the Army in his report states that the evidence that this airplane crash and the resulting damage to the property of the Texas Co. were incident to noncombat activities of the Army, and were not caused in whole or in part by any negligence on the part of the Texas Co., its agents or employees. The Department of the Army opposes this bill simply because it is a subrogation claim.
The Congress has recognized the right of subrogation claims, to wit:
Private Law 266, Seventy-sixth Congress (H. R. 3363): in this case Anna E. Hurley, who was the owner of property in Kansas City, Kans., sustained a loss due to the crashing of a United States Navy plane into her home. The American Insurance Co. of New Jersey were required by reason of the terms of policies issued to the said Anna E. Hurley to pay for this damage. The American Insurance Co., in this law was reimbursed in the sum of $1,300 under their subrogation claims. The law was approved January 17, 1940.
Private Law 142, Seventy-seventh Congress (H. R. 3523): In this case a United States Navy airplane crashed into the residence and garage owned by Commander H. S. Kendall in Coronado, Calif., the accident happening on December 8. By reason of the accident the Equitable Insurance Alliance, the Fidelity & Guarantee Fire Corp., and the Hartford Fire Insurance Co. were compelled to pay said damages on account of liability incurred under contracts of insurance. The law provided for reimbursement under the subrogation claims presented by these companies for the entire amount paid out under their insurance contracts. This law was approved July 30, 1941.
Private Law 529, Seventy-seventh Congress (H. R. 5651): In this case Frank Hall, New Paris, Ohio, sustained damages by fire to his property on or about February 18, 1939, by reason of negligence of an agent of the Soil Conservation Service, United States Department of Agriculture. The Home Insurance Co., and the American Insurance Co., were required by reason of the terms of policies issued to the said Frank Hall to pay for this damage. The Home Insurance Co., in this law was reimbursed in the sum of $297.42; and the American Insurance Co. was paid the sum of $3,544.25 under their subrogation claims. This law was approved December 2, 1942.
Private Law 276, Seventy-seventh Congress (H. R. 3118): This case presents a new type of assignment: It was for the relief of the State Compensation Fund of California. Frank Ross, of Davis, Calif., sustained personal injuries on December 2, 1937, when an automobile which he was driving was struck by a United States Civilian Conservation Corps truck. The State compensation insurance fund paid Mr. Ross for compensation and medical treatment the sum of $1,684.98. This law completely reimbursed the State Compensation Fund of California the entire amount they were compelled to pay by reason of this accident. This law was approved February 16, 1942.
Private Law 430, Seventy-eighth Congress (S. 1278): In this case a civilian vehicle was transporting a number of local shipments of freight at the time of the accident, all of which were destroyed by the collison and the ensuing fire. The Yellow Cab Co. paid its patrons a total of $8,067.34 for freight lost in the wreck. This amount was subsequently recovered by the company from its insurer, the Equitable Fire & Marine Insurance Co., amounting to $7,901.83. These losses were sustained as a result of a collision between the Yellow Cab Co. truck and a United States Army vehicle.
This law was approved in favor of the Equitable Insurance Co. on December 6, 1944.
Public Law 637 of the Eightieth Congress (H. R. 669) is as follows:
To provide a method of paying all unsettled claims for damages sustained as & result of the explosions at Port Chicago, Calif., on July 17, 1944, in the amounts found to be due by the Secretary of the Navy.
The committee calls the special attention of the House to the following Statement by the Committee on the Judiciary, United States Senate, in its Report No. 1355, which is as follows:
It is the view of the committee that settlement should be made as so recommended, pursuant to Public Law 423 of the Seventy-eighth Congress, second session, and that subrogated claims as well as personal claims should be paid, there appearing no reason why the Government, having determined its liability, should not pay such subrogated claims.
Therefore, your committee recommends favorable consideration to this bill.
Washington, D. C., July 21, 1947. Hon. EARL C. MICHENER, Chairman, Committee on the Judiciary,
House of Representatives. DEAR MR. MICHENER: The War Department is opposed to the enactment of H. R. 3674, Eightieth Congress, a bill for the relief of Knickerbocker Insurance Co. of New York and Atlas Assurance Co., Ltd.
This bill would authorize and direct the Secretary of the Treasury to pay, out of any money in the Treasury not otherwise appropriated, to Knickerbocker Insurance Co. of New York, the sum of $2,639.07, and to Atlas Assurance Co., Ltd., the sum of $18,473.48, in full and final settlement of all of their claims against the United States resulting from property damage to the west Dallas (Tex.), works of the Texas Co. caused by the crash of a B-29 Army bomber into the said plant on October 8, 1944. It appears that on October 8, 1944,
while flying in formation over Dallas, Tex., on an authorized training mission, a B-29 aircraft attempted to alter its position in the formation. While so doing, the plane went into a steep dive which continued for about 3,000 feet. It then flipped over on its back and started to spin. The plane crashed, inverted, on the property of the west Dallas refinery of the Texas Co., completely destroying the carpenter shop building and its contents, partly destroying the stockhouse building and its contents, damaging five storage tanks and destroying their contents, and damaging or destroying power and telephone lines and miscellaneous other items.
On October 4, 1945, the Texas Co. filed a claim with the War Department in the amount of $34,500.39 under the provisions of the act of July 3, 1943 (57 Stat. 372; 31 U. S. C. 223b), as amended.” On October 25, 1946, the Texas Co. elected to withdraw its claim against the United States and to proceed against its insurers. The War Department has no information with regard to any payments which may bave been made by the Knickerbocker Insurance Co. of New York and the Atlas Assurance Co., ltd, to the Texas Co. by reason of the damage caused by the crash in question. No claim was ever filed with the War Department by either of these insurance companies, as subrogee of the Texas Co.
The evidence establishes that this airplane crash and the resulting damage to the property of the Texas Co. were incident to noncombat activities of the Army, and were not caused in whole or in part by any negligence on the part of the Texas Co., its agents, or employees.
A similar bill, H. R. 6683, entitled "A bill for the relief of Agricultural Insurance Co., and others," was introduced in the Seventy-ninth Congress. That bill would have authorized and directed the Secretary of the Treasury to pay to the several insurance companies with which the Empire State Building was insured the respective amounts of insurance paid by them to Empire State, Inc., the owner of said building, arising out of the damages caused to such building on account of its being struck by an Army airplane on July 28, 1945. "The bill was referred to the Committee on Claims, House of Representatives, and the chairman of that Committee requested the War Department to submit a report thereon. On July 18, 1946, the War Department submitted a report on said bill, recommending that the bill be not favorably considered. The War Department in its report on H. R. 6683, Seventy-ninth Congress, stated:
the claims now being asserted by the several insurance companies under H. R. 6683 are asserted by them as subrogees of their insureds. Each of these companies assessed and collected a premium for the risk which it took in insuring the property of its insured, and, accordingly, it is the view of the War Department that the reimbursement of these companies for payments which they were bound to make under their contracts by means of a private relief bill in Congress would be neither appropriate nor justified. Moreover, the act of July 3, 1943, supra, which is the only statute available to the War Department under which claims of this character may be considered, does not authorize the Department to report to Congress for its consideration an insured loss when asserted by the insured or the claim of an insurance company as subrogee of such insured. No reason is perceived by the Department why a different result should be reached when the claim of a subrogee is presented in a private relief bill than when it is being considered for inclusion in a deficiency appropriation bill. Inasmuch as the Congress has not directed the War Department by statute to report such a claim for inclusion in a deficiency appropriation bill, it is the view of the Department that there is no justifiable basis for providing an award for the benefit of such subrogee in a private relief bill.
“For the reasons hereinbefore stated, the War Department recommends that this bill be not favorably considered.
"The fiscal effect of the bill is manifest.
“The Bureau of the Budget advises that there is no objection to the submission of this report.”
Since the Knickerbocker Insurance Co. of New York and the Atlas Assurance Co., Ltd, assessed and collected premiums from the Texas Co. for the risks which they took in insuring the property of said company, it is the view of the War Department, as stated in its report on H. R. 6683, Seventy-ninth Congress, hereinbefore quoted, "that the reimbursement of these companies for payments which they were bound to make under their contracts by means of a private relief bill in Congress would be neither appropriate nor justified.” The War Department, therefore, recommends that H. R. 3674, Seventy-ninth Congress, be not favorably considered.
The fiscal effect of this bill, if enacted, would be the appropriation of public funds aggregating $21,112.55 in settlement of the subrogation claims of these two insurance companies.
The Bureau of the Budget advises that there is no objection to the submission of this report. Sincerely yours,
ROBERT P. PATTERSC.V,
Secretary of 'War.
New YORK, N. Y., November 28, 1944. Claim: The Texas Co., Dallas, Tex.; explosion and fire, October 8, 1944. Present
status report. John G. SIMMONDS & Co.,
111 John Street, New York, N. Y. GENTLEMEN: An accident occurred at the west Dallas works of the Texas Co. on October 8 when the crash of a B-29 bomber set fire to the carpenter shop and storehouse.
The damage resulting from the explosion and fire included complete destruction of the carpenter shop and all of the woodworking machinery within this shop. The personal tools of the two carpenters employed there were entirely lost. Within the carpenter shop was stored fire equipment, such as a 40-gallon foamite cart, shovels, etc., which was all completely destroyed.
On the east side of the carpenter shop assured had a gasoline-driven air compressor, used for tank-painting work and this was also destroyed. All lumber within and switch ties stored at the carpenter shop or at its vicinity were completely destroyed.
The explosion and fire also resulted in damage to the storehouse and storehouse stocks. The west third of the superstructure of the storehouse was completely destroyed and the remainder of the storehouse superstructure, including rafters and corrugated iron, was partially destroyed, as well as damage to the storehouse office and its equipment. Some damage occurred to the under side of the storehouse, but generally this damage was not very severe.
Storehouse stocks in the west end of the building were severely damaged from fire and water. These stocks included lubricating oils, lime, cement, paints, insu