FOR THE RELIEF OF CAPT. JOHN H. MERRIAM, SUPPLY CORPS, UNITED STATES NAVY (H. R. 16901)

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON NAVAL AFFAIRS,

Monday, February 11, 1929.

The subcommittee this day met at 11.00 o'clock a. m., Hon. Clark Burdick (chairman) presiding.

Mr. BURDICK. The next bill for consideration is H. R. 16901, for the relief of Capt. John H. Merriam, Supply Corps, United States Navy. The bill in question and a report thereon by the Navy Department read as follows:

A BILL For the relief of Captain John H. Merriam, Supply Corps, United States Navy Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the General Accounting Office is hereby authorized and directed to credit the accounts of Captain John H. Merriam, Supply Corps, United States Navy, in the amount of $310, which sum represents a payment made by said officer to the J. H. Nolan Construction Company April 12, 1916, on public bill No. 1028, contract No. 2180, disallowed by the Comptroller General in the final settlement of the accounts of said officer.

A BILL For the relief of Captain Chester G. Mayo, Supply Corps, United States Navy Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the General Accounting Office is hereby authorized and directed to credit the accounts of Captain Chester G. Mayo, Supply Corps, United States Navy, in the amount of $2,994.38, which sum represents the aggregate of payments made by said officer on voucher numbered 8419 for $2,400 paid February 23, 1922, under department contract numbered 3069 (Yards and Docks numbered 4301); on voucher numbered 3334 for $164 paid March 3, 1922; on voucher numbered 162 for $3 paid September 5, 1922; on voucher numbered 5182 for $275 paid July 3, 1922; on voucher numbered 3820 for $15 paid August 11, 1920; and on voucher numbered 4708 for $137.38 paid August 28, 1922, which payments were subsequently disallowed by the Comptroller General.

FOR THE RELIEF OF CAPT. JOHN H. MERRIAM AND CAPT. CHESTER G. MAYO, SUPPLY CORPS, UNITED STATES NAVY

NAVY DEPARTMENT, Washington, February 5, 1929.

The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS,

House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: Referring to the bill, H. R. 9352, providing for sundry matters affecting the naval service, a draft of which was referred to you by the Navy Department on January 12, 1928, the purpose being to relieve various disbursing officers of the Navy of certain charges standing against them in their accounts, I have the honor to submit herewith a draft of two sections with request that they be added to the bill.

The first section of the inclosed draft_authorizes and directs the Comptroller General to credit the accounts of Capt. John H. Merriam, Supply Corps, United States Navy, in the amount of $310, which sum represents a payment made by him to the J. H. Nolan Construction Co., on April 12, 1916, on Public bill No. 1028, Contract No. 2180, disallowed by the Comptroller General in the final settlement of his accounts.

Contract 2180 covered construction of a cotton storehouse at the naval proving grounds, Indian Head, Md., to be completed by December 14, 1915. In the final settlement under this contract the General Accounting Office suspended $315. 70 against voucher 1028 because of delay in completing the building.

The contract provided for assessment of liquidated damages at $5 per day for each day of delay beyond the date specified for completion with the alternative of deducting actual damages if such amount could be determined. The alternative is coupled with the provision “if it is determined that there was no damage none will be imposed."

Evidence later submitted showed that the building was practically completed February 15, 1916, on which date the Government took possession. The General Accounting Office allowed on this evidence $5.70, leaving a balance of $310 suspended against voucher 1028, which amount was later disallowed by the Comptroller General.

The question of delay in completion of the work was the subject of correspondence between the officer in charge of the work and the Bureau of Yards and Docks, and on March 27, 1916, the officer in charge recommended that no penalty be exacted for delay inasmuch as the Government had suffered no loss. On April 10, 1916, the Bureau of Yards and Docks advised the officer in charge of the work as follows:

"The question of penalizing this contractor was reconsidered by the Secretary of the Navy and preparation of final and reservation voucher was authorized without deduction for liquidated damages or other penalty."

The vouchers were therefore paid as submitted.

Because of the terms of the liquidated damage clause it is held that the payment made was similar to that covered by 24 Comp. Dec. 170. Two attempts were made to have the case reopened with refrence to the decision referred to but reconsideration was denied. The Navy Department considers that the payment was properly made under the terms of the contract and that the disbursing officer should not be held liable by a technicality raised by the General Accounting Office.

The second section of the inclosed draft authorizes and directs the Comptroller General to credit the accounts of Capt. Chester G. Mayo, Supply Corps, United States Navy, in the amount of $2,994.38, which sum represents the aggregate of payments made by him on voucher No. 8419 for $2,400 paid February 23, 1922, under department contract No. 3069 (Y. and D. No. 4301); on voucher No. 3334 for $164, paid March 3, 1922; on voucher No. 162 for $3 paid September 5, 1922; on voucher No. 5182 for $275 paid July 3, 1922; on voucher No. 3820 for $15 paid August 11, 1920, and on voucher No. 4708 for $137.38 paid August 28, 1922, which payments were subsequently disallowed by the Comptroller General. Contract 3069, which is covered by voucher 8419, provided for building railroad track extensions and foundation for radial brick chimney at the naval research aboratory, Washington (Bellevue), D. C.

Paragraph 12 of the contract provides that

"The failure or neglect of the contractor to submit his claim for extension of time within 30 days after the happening of the cause or causes upon which his claim is predicated shall be deemed and construed as a waiver of all claims and right to an extension of time for the completion of the work on account of alleged delay, and the contractor agrees to accept the finding and action of the Navy Department, Bureau of Yards and Docks, in the premises as conclusive and binding."

Extensions of time were granted by the Bureau of Yards and Docks in its letter of February 23, 1922, for a period of 179 days. Of the time under this extension all delay was due to causes for which the Government was responsible except 16 days which were due to a stonecutters' strike.

The General Accounting Office had suspended $28,500 against this voucher for a statement showing inclusive dates for the causes enumerated in Yards and Docks letter of February 23, 1922, and for evidence that the contractor submitted claim for extension of time within 30 days after the happening of the causes on which the contractor's claim was predicated. Inasmuch as the causes of delay for which time extensions were granted, except the 16 days due to strike, were

causes for which the Government was responsible, the contractor was not required to submit a request for time extension. (Comptroller General's decision of July 9, 1923, review 4725). The records of the Bureau of Yards and Docks fail to show that the contractor requested extension of time because of the strike as required by paragraph 12.

The amount suspended against this voucher, $2,400, represents a liquidated damage clause for 16 days of $150 per day.

Voucher 3334 for $164 was paid to Earle Aiken Pound as reimbursement for medical expenses incurred by him while a member of the United States Naval Reserve Force. This amount was disallowed by the General Accounting Office on the grounds that information received from the Bureau of Navigation showed that Pound enrolled in the Reserve Force May 23, 1918, and was disenrolled June 1, 1920, never having been called to active duty.

It appears that Pound was enrolled in the Reserve Force May 23, 1918, and was ordered home to await orders. In similar cases it was held by the Navy Department that men ordered home for the convenience of the Government were in a duty status and entitled to medical attendance, as provided by Navy Regulations. It appears that no report of Pound's illness was made to the Bureau of Medicine and Surgery, but a report was made to the commandant of the sixth naval district, and subsequently when claim for reimbursement for medical expenses was submitted it was approved by the Bureau of Medicine and Surgery. The facts concerning this case were furnished the General Accounting Office, but removal of the disallowance was denied under 5 Comp. Gen. 603. Voucher 162 for $3 and voucher 5182 for $275 were paid Drs. P. Ray Meikrantz and H. A. Price, civilian physicians, for medical services rendered Laurence Poticher, fireman, third class, United States Navy, from December 21, 1920, to April 30, 1921.

Poticher was on leave of absence when taken ill December 18, 1920. He reported his inability to return to duty on expiration of leave, and the Bureau of Medicine and Surgery recommended on January 24, 1921, that an officer of the Medical Corps be ordered to investigate the case and submit report. The investigating medical officer recommended that Poticher remain in the care of his family physician until his condition permitted his transfer to a naval hospital. The civilian physician was advised by the investigating medical officer that the Navy Department would pay his bill. The investigating medical officer's report and recommendation was approved by the Bureau of Medicine and Surgery February 3, 1921, and by the Bureau of Navigation February 10, 1921. The Comptroller General based his disallowance of these items on Decision 2, Comptroller General, 269, relative to duty status. The original disallowance under voucher 5182 was for $438, but a subsequent credit allowed by the General Accounting Office leaves a disallowance of $275. (See 4 Com. Gen. Dec. 175 and A-3915.)

Voucher 3820 for $15 was paid to the Sunbury Supply Co. to cover the charge of the Sunbury Supply Co. for the landing of airplane 3414 in Walnut Street Field. Sunbury, Pa., on April 21, 1923. This plane was piloted by H. J. Norton, first lieutenant, United States Marine Corps. This charge was covered by Bureau of Aeronautics requisition 439, 1923 series, approved in accordance with Judge Adovcate General's first indorsement dated April 6, 1923, file 268931555-N.

The General Accounting Office disallowed this payment on the grounds that no services were rendered by the Sunbury Supply Co. and no damage was incurred to any part of the field or shrubbery in the vicinity. (See 5 Com. Gen. Dec. 428.) The Sunbury Supply Co. has been requested to refund this amount but claims that they sustained damage to the field to the extent of $24.10 and declined to make reimbursement.

Voucher No. 4708 was paid to the late Lieut. Robert L. Gressitt, Supply Corps, United States Navy, as reimbursement for the cost of transporting his wife from Bremerton, Wash., to Washington, D. C., upon change of station as provided for in the act of May 18, 1920.

Lieutenant Gressitt, Supply Corps, United States Navy, was detached from duty at the navy yard, Puget Sound, under orders of the Bureau of Navigation, dated August 5, 1922, and ordered to the naval hospital, Washington, D. C., for treatment.

His claim for reimbursement for the cost of his wife's transportation was paid in accordance with instructions issued by the Secretary of the Navy to the Bureau of Supplies and Accounts, dated June 16, 1920, which reads as follows:

"An officer or petty officer ordered to a hospital for treatment but not detached from his station is not entitled to transportation of his family from his station to the hospital, as no permanent change of station is made. If he is later detached from his old station while still in the hospital and ordered to a new one, he is then entitled to transportation of his wife and children at Government expense from the old to the new station.'

The suspensions which were finally disallowed by the Comptroller General in the accounts of Captains Mayo and Merriam, Supply Corps, United States Navy, arose while these officers were in charge of the Navy disbursing office, Washington, D. C. Some of the suspensions were incurred under trying conditions during the war period, and in each case it is considered that these officers exercised due diligence and should be relieved.

The enactment of this legislation will relieve the above-named officers of the erroneous payments above indicated and no additional appropriations will be

necessary.

The inclosed draft was referred to the Bureau of the Budget with the above information and a statement that the Navy Department contemplated recommending to the Congress that the two sections referred to be enacted. Under date of May 16, 1928, the Director of the Bureau of the Budget advised the Navy Department that the legislation proposed in the draft is not in conflict with the financial program of the President.

In view of the foregoing the Navy Department recommends that the two sections submitted herewith be enacted.

Sincerely yours,

CURTIS D. WILBUR,
Secretary of the Navy.

STATEMENT OF REAR ADMIRAL CHARLES MORRIS, SUPPLY CORPS, UNITED STATES NAVY, CHIEF OF THE BUREAU OF SUPPLIES AND ACCOUNTS

Mr. BURDICK. Let us have an explanation of this bill.

Admiral MORRIS. The sum of $310 was disallowed by the General Accounting Office from a payment made to the J. H. Nolan Construction Co., April 12, 1916, on public bill 1028, under contract 2180, by Captain Merriam.

This contract covered construction of a cotton storehouse at the Naval Proving Ground, Indianhead, Md., to be completed by Decem ber 14, 1915.

In the final settlement under this contract the General Accounting Office suspended $315.70 against voucher 1028, owing to a delay in completion of the building.

The contract provided for assessment of liquidated damages at $5 a day for every day of delay beyond the date specified for completion, with the alternative of deducting actual damage if such amount could be determined. The alterntaive is coupled with the provision "if it is determined that there was no damage, none will be imposed."

Evidence later submitted showed that the building was practically complete February 15, 1916, on which date the Government moved in. By letter of December 23, 1919, the comptroller allowed $5.70, leaving an amount of $310 suspended against this voucher 1028. This amount was later disallowed.

It appears that the question of delay in completion of the work was the subject of much correspondence between the officer in charge of the work and the Bureau of Yards and Docks. On March 17, 1916, the officer in charge recommended that no penalty be exacted for delay in completion of the contract as the Government had suffered no loss.