a commercial rent for the areas. The Navy has, excess to its needs, certain properties which are an extension of Lindbergh Field and easements pertaining thereto. This area is appraised at a value of $1,150,000. This land was originally donated to the Navy by the city of San Diego. There is also an excess, emergency landing strip located at Rosedale for which the Navy paid $15,000 and which is presently appraised at $25,000. There is also excess to the Navy's needs a group of buildings constructed during the war on city-owned land. A portion of these buildings has already been condemned and their residual value to the Navy is questionable. The city of San Diego desires title to the excess Lindbergh Field area and the Rosedale landing-strip area. Further, the Navy desires to avoid the payment of commercial rents on the properties which it is presently leasing for nominal sums. This bill authorizes the Navy to transfer the two properties and the buildings mentioned above and the perpetual easements thereto to the city of San Diego in exchange for rent-free leases for 50 years with an option of renewal for 50 years to the property mentioned in the bill. It is estimated that the money_values involved over a period of 10 years will be in favor of the Federal Government. The bill as it passed the House of Representatives has been amended to throw more safeguards around the interest of the Government. An identical bill in the Senate (S. 2763) was introduced at the request of the Navy Department without objection of the Bureau of the Budget. Copy of the letter from the Secretary of the Navy to the chairman of the Committee on Armed Services is made a part of this .report. Hon. CHAN GURNEY, THE SECRETARY OF THE NAVY, Chairman, Committee on Armed Services, United States Senate. MY DEAR MR. CHAIRMAN: There is transmitted herewith a draft of proposed legislation to authorize an exchange of lands and interests therein between the city of San Diego, Calif., and the United States, and for other purposes. The purpose of the proposed legislation is to enable the Navy to acquire longrange control for naval uses of certain properties of the city of San Diego, which the United States occupied for war purposes under short-term instruments. In this connection, certain properties of the United States or interests therein in San Diego, which are no longer required for naval use, are considered by the city to be essential to the development of its municipal economy. It has been ascertained that the rights and estates in the respective properties are of comparable value, and tentative agreement has been reached for their exchange on an even basis. The properties involved are identified in the proposed legislation. The Navy Department has made detailed studies and appraisals of the properties involved and is satisfied that the proposed exchange is equitable. The exchange which the enactment of the proposed bill would authorize would not be consummated on behalf of the United States until all legal aspects thereof had been approved by the Attorney General. For the foregoing reasons, the Department of the Navy recommends enactment of the proposed legislation. This proposed legislation, if enacted into law, would result in no additional cost to the Government. The Department of the Army and the Department of the Air Force offer no objection to this report. The Navy Department has been advised by the Bureau of the Budget that there is no objection to the submission of this report to the Congress. Sincerely yours, PROVIDING FOR THE ACQUISITION OF A SITE AND THE ERECTION THEREON OF A POST-OFFICE BUILDING AT BUNKER HILL, ILL. JUNE 16 (legislative day, JUNE 15), 1948.-Ordered to be printed Mr. CAIN, from the Committee on Public Works, submitted the following REPORT "To accompany S. 2759) The Committee on Public Works, to whom was referred the bill (S. 2759) to provide for the acquisition of a site and the erection thereon of a post-office building at Bunker Hill, Ill., having considered the same, report favorably thereon without amendment with the recommendation that the bill do pass. The purpose of the bill is to authorize the Federal Works Administrator to acquire a suitable site in Bunker Hill, Ill., and erect thereon a suitable building for the use and accommodation of the United States Post Office, the plans and specifications to be approved by the Administrator and the Postmaster General, and to authorize the appropriation of $160,000 for carrying out the provisions of this act. The post office at Bunker Hill, Ill., formerly occupied leased space at a rental of $480 per year including equipment, fuel, light, and water. On March 19, 1948, the town of Bunker Hill was devastated by a cyclone. All structures in the town were demolished or rendered unsatisfactory for use. The post office was temporarily reopened in the lobby of the local bank until a temporary structure was improvised on city-owned property for use by the post office. Suitable space for the post office cannot be found in the town, and it is believed that such space will not be available for a considerable period of time. The total receipts for the calendar year 1947 at Bunker Hill were $11,062, and it is, therefore, eligible for consideration for the erection of a Federal building under the provisions of the act of March 4, 1913. which fixes $10,000 in postal receipts as the minimum required for such eligibility. In view of the unusual conditions existing at Bunker Hill at the present time, provision of a suitable post-office building is considered desirable. The Federal Works Agency and the Post Office Department report no objection to this legislation as shown by the following letters: FEDERAL WORKS AGENCY, Washington, June 10, 1948. Hon. CHAPMAN REVERCOMB, Chairman, Committee on Public Works, United States Senate, Washington, D. C. MY DEAR MR. REVERCOMB: This will acknowledge receipt of your letter of May 28, 1948, requesting our views on S. 2759, a bill entitled "To provide for the acquisition of a site and the erection thereon of a post-office building at Bunker Hill, Ill." The proposed legislation authorizes the Federal Works Administrator to acquire a suitable site and erect thereon a building for the accommodation of the United States post office in Bunker Hill, Ill., and authorizes an appropriation of $160,000 to carry out the provisions of the act. Because of the high cost of labor and materials, among other factors, it has been the practice of this Agency not to recommend favorable consideration of bills of this character, except in cases where emergency conditions exist. It is understood that a large part of the city of Bunker Hill was recently destroyed by tornado and that provision for a post-office building is very necessary at this time. It is the function of the Post Office Department to justify a new post-office building. If that Department determines that a need therefor exists this Agency will favor enactment of the bill. Due to the fact that your committee desires this report immediately it has been impossible to ascertain from the Bureau of the Budget whether S. 2759 is in accordance with the program of the President. Sincerely yours, Hon. CHAPMAN REVERCOMB, J. W. FOLLIN, (Acting for Philip B. Fleming, Major General, U. S. Army, Administrator) OFFICE OF THE POSTMASTER GENERAL, United States Senate. DEAR SENATOR: Further reference is made to your request for a report upon S. 2759, a bill to provide for the acquisition of a site and the erection thereon of a post-office building at Bunker Hill, Ill. The total receipts for the calendar year 1947 at Bunker Hill were $11,062 and it is therefore eligible for consideration for the erection of a Federal building under the provisions of the act of March 4, 1913, which fixes $10,000 in postal receipts as the minimum required for such eligibility. The Federal Works Agency has estimated that under present conditions it will cost $160,000 to purchase a site and erect a suitable Federal building for post-office purposes at Bunker Hill. This is the amount stipulated in S. 2759. The post office at Bunker Hill formerly occupied space in a building owned by Mrs. Addie Truesdale under a lease for a term of 10 years, expiring June 30, 1955, at a rental of $480 a year, including equipment, fuel, light, power, and water. On March 19, 1948, the town of Bunker Hill was devastated by a windstorm which, it is reported, reached the proportions of a cyclone. With two exceptions, all structures in the town were demolished or rendered unsatisfactory for use. The post office was temporarily reopened in the lobby of the local bank, which was one of the two usable buildings, and after a period of 3 weeks, a temporary structure was improvised and placed on city-owned property for use by the post office. This temporary building the postmaster reports is too small and unsuitable in many ways. The Department has initiated an investigation with a view to leasing suitable quarters for the Bunker Hill post office. No report has been received in the case and it is impossible to state explicitly whether any proposals will be submitted to provide quarters under lease. However, in view of the almost total demolition of the community and the fact that businessmen and residents will be interested primarily in building for their own uses, there is reason to believe difficulty will be encountered in securing proposals to build and lease for post office use. In view of the unusual conditions as cited herein, it is recommended that S. 2759 be given favorable consideration This report has not been cleared through the Bureau of the Budget. V. C. BURKE, |