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r. WILEY, from the Committee on the Judiciary, submitted the

following

REPORT

[To accompany S. 2049]

The Committee on the Judiciary, to whom was referred the bill - 2049), for the relief of the Alamo Irrigation Co., having considered e same, do now report the bill to the Senate favorably, with an endment in the nature of a substitute, and recommend that the 1, as amended, do pass.

The amendment is as follows:

Strike out all after the enacting clause and insert in lieu thereof the lowing:

That whereas Alamo Irrigation Company, of Alamo, Nevada, under date of gust 7, 1946, executed its promissory note to the United States for $46,200 moneys advanced on that date by the United States for the purpose of lining irrigation canals and installing therein certain turn-out structures pursuant to Act of August 28, 1937, entitled "An Act to promote conservation in the arid I semiarid areas of the United States by aiding in the development of facilities water storage and utilization, and for other purposes" (50 Stat. 869); and Whereas Alamo Irrigation Company was not permitted to use the funds adced unless countersigned by a duly authorized representative of the Secretary Agriculture; and

Whereas Alamo Irrigation Company was unable to obtain bids within the its of available funds for lining the canals and was further delayed from the of such funds by the necessity of transporting irrigation water until the 1947 Os were matured,

nterest which accrued on said note from August 7, 1946, to June 17, 1947, he sum of $1,193.50 is hereby waived and the Secretary of Agriculture is aurized and directed to cause the proper entries to be made in the accounting ords of the Department of Agriculture to effect such waiver

The purpose of the proposed legislation is to authorize the Secretary Agriculture to waive the collection of interest in the amount of 193.50 on a loan made by the Secretary to the Alamo Irrigation Co. that period which the company was unable to use the principal ount of the loan.

STATEMENT

The facts are fully set forth in the attached letters received from the Department of Justice and the Department of Agriculture: DEPARTMENT OF JUSTICE,

Hon. ALEXANDER WILEY,

Chairman, Committee on the Judiciary,

United States Senate, Washington, D. C.

June 14, 1948.

MY DEAR SENATOR: This is in response to your request for the views of this Department relative to the bill (S. 2049) for the relief of the Alamo Irrigation Co. The bill would authorize and direct the Secretary of Agriculture to credit the note for $46,200, executed by the Alamo Irrigation Co., of Alamo, Nev., dated August 7, 1946, with the sum of $1,193.50, representing the interest accrued thereon from August 7, 1946, to June 17, 1947, during which time such corporation was prevented from applying the funds for which such note was given to the contemplated purpose of lining a canal, first by the impossibility of securing acceptable bids therefor during the fall months of 1946, and thereafter by the necessity of using the existing canal to transport irrigation water to farms until the 1947 crops were matured.

In compliance with your request, a report was obtained from the Department of Agriculture concerning this legislation. That report which is enclosed, states that the Alamo Irrigation Co. applied to the Department of Agriculture for assistance pursuant to the act of August 28, 1937 (50 Stat. 869) for the purpose of lining irrigation canals of that company and installing necessary turn-out structures. A loan in the amount of $46,200 was made to the company and funds were advanced on August 7, 1946. The company was unable to use such funds immediately because all construction bids were in excess of available funds and had to be rejected. With the approval of the Department of Agriculture the construction plans were then redrafted and the company undertook to do the construction on its own account in accordance with revised plans but further delay was encountered by reason of the necessity of using the existing canals for the remaining period of the then current crop season. The loan funds advanced to the borrower were deposited in a bank account subject to withdrawal only upon countersignature of representatives of the Government. Consequently. no funds were expended until final plans were made for the construction of the project within the total funds available. The first loan money was expended by the company on June 17, 1947, but during the interim, interest accrued at the rate of 3 percent per annum aggregating $1,193.50.

The Department of Agriculture states it has no authority to adjust or modify the agreement with the claimant company to relieve it from any part of the accrued interest which resulted from the unavoidable delay. It is pointed out, however, that since this loan was made, procedures have been revised in order to prevent the recurrence of this type of situation. The Department of Agriculture states it has no objection in this instance to the enactment of the bill directing that the note of the company be credited with the specified amount of accrued interest.

The bill as presently drawn does not state that the note in question was made to the United States or that moneys under it were actually advanced. In addition, the advisability of a statutory finding of impossibility of obtaining acceptable bids appears doubtful. Should the bill be enacted, it is recommended that it be amended by striking out all matter after the enacting clause and substituting therefor the following:

"That whereas Alamo Irrigation Company, of Alamo, Nevada, under date of August 7, 1946, executed its promissory note to the United States for $46,200 for moneys advanced on that date by the United States for the purpose of lining its irrigation canals and installing therein certain turn-out structures pursuant to an Act of August 28, 1937, entitled 'An Act to promote conservation in the arid and semiarid areas of the United States by aiding in the development of facilities for water storage and utilization, and for other purposes' (50 Stat. 869); and "Whereas Alamo Irrigation Company was not permitted to use the funds advanced unless countersigned by a duly authorized representative of the Secretary of Agriculture; and

"Whereas Alamo Irrigation Company was unable to obtain bids within the limits of available funds for lining the canals and was further delayed from the use of such funds by the necessity of transporting irrigation water until the 1947 crops were matured,

"Interest which accrued on said note from August 7, 1946, to June 17, 1947, in e sum of $1,193.50 is hereby waived and the Secretary of Agriculture is authored and directed to cause the proper entires to be made in the accounting records the Department of Agriculture to effect such waiver."

Whether such legislation should be enacted presents a question of legislative licy concerning which the Department of Justice desires to make no recomendation.

The Director of the Bureau of the Budget has advised that there would be no jection to the submission of the report.

Yours sincerely.

PEYTON FORD,

The Assistant to the Attorney General.

DEPARTMENT OF AGRICULTURE,

March 2, 1948.

e honorable the ATTORNEY GENERAL. DEAR MR. ATTORNEY GENERAL: In response to Mr. Ford's request of February 1948, concerning private bill S. 2049, for the relief of the Alamo Irrigation Co.. m pleased to submit the views of this Department with respect to that bill. The Alamo Irrigation Co. applied to this Department for assistance pursuant the act of August 28, 1937, entitled "An act to promote conservation in the and semiarid areas of the United States by aiding in the development of ilities for water storage and utilization, and for other purposes" (50 Stat. 869, U. S. C. 590r-x), for the purpose of lining existing irrigation canals of that pany and the installation of necessary turn-out structures. A loan in the ount of $46,200 was made to the company and funds were advanced on August 1946. The company was unable to use the funds immediately because coniction bids submitted to it by contractors were all in excess of available funds. e bids were, therefore, rejected by the company. The construction plans were n redrafted with the approval of this Department, and the borrower undertook do the construction on its own account in accordance with the revised plans. ther delay in beginning construction was encountered by reason of the necesof using the existing canals for the remaining period of the then current crop

son.

lthough the loan funds were advanced to the borrower, they were deposited A bank account subject to withdrawal only upon countersignature of repreatives of the Government. Consequently, no funds were expended until I plans were made for the construction of the project within the total funds ilable. The first loan money was expended by the company on June 17, 1947. -ing the interim, interest accrued at the rate of 3 percent per annum aggreng $1,193.50.

his Department has no authority to adjust or modify the agreement with the no Irrigation Co. to relieve it from any part of the accrued interest which lted from the unavoidable delays. Since this loan was made, procedures e been revised in a manner which should prevent the recurrence of this type tuation. There is no objection, however, in this instance to the enactment of private bill directing that the note of the company be credited with the ified amount of accrued interest.

Sincerely,

CLINTON P. ANDERSON, Secretary.

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Mr. WILEY, from the Committee on the Judiciary, submitted the

following

REPORT

[To accompany H. R. 851]

The Committee on the Judiciary, to whom was referred the bill H. R. 851) for the relief of Adney W. Gray, having considered the ame, do now report the bill to the Senate favorably, without amendent, and recommend that the bill do pass.

The purpose of the proposed legislation is to pay the sum of $3,810 o Adney W. Gray, of Pepperell, Mass., in full settlement of all claims gainst the United States for losses sustained as the result of the opertion of the Northeastern Timber Salvage Administration, Departent of Agriculture, of a sawmill located near the fox ranch of the aid Adney W. Gray. The unusual noises and commotion from such ill and the trucks and tractors operated in connection therewith › frightened and disturbed the foxes that the female breeders deroyed their young, and such breeders had to be replaced.

STATEMENT

The facts are fully set forth in House Report No. 1722, Eightieth ongress, second session, and need not be reprinted here.

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