[No. 76] TO AUTHORIZE THE SECRETARY OF THE NAVY TO MODIFY AGREEMENTS HERETOFORE MADE FOR THE SETTLEMENT OF CERTAIN CLAIMS IN FAVOR OF THE UNITED STATES (H. R. 15131) NAVY DEPARTMENT, Washington, January 15, 1927. The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS, House of Representatives. MY DEAR MR. CHAIRMAN: Further replying to your letter of December 15, 1926, transmitting for the views and recommendations of the Navy Department a bill (H. R. 15131) “To authorize the Secretary of the Navy to modify agreements heretofore made for the settlement of certain claims in favor of the United States," there is transmitted herewith a report made on June 26, 1926, upon an identical bill (S. 4332) to the Committee on Naval Affairs of the United States Senate. The information that you desire for consideration of the House bill will be found in that letter. In the schedule of the outstanding notes attached thereto, the "present value" is estimated as of July 1, 1926, but it will give you an approximation of the amount at the present time. Since it was made up the New York Shipbuilding Corporation has paid $11,768.20; the Staten Island Shipbuilding Corporation has paid $48,030; and the Wellman-Seaver-Morgan Co. has paid $3,000, the last being on the indebtedness stated in the schedule at $9,000. It will be seen by the accompanying copy of the letter to the Senate committee that the Senate bill was referred to the Bureau of the Budget with a statement that the Navy Department contemplated making a favorable recommendation on its enactment and a report was received that this proposed report would not be in conflict with the financial program of the President. A favorable report was therefore made upon Senate bill. The Navy Department for the reasons given in its letter believes that it will be advantageous to the United States to receive settlement of these obligations before their maturity and at a discount, and, therefore, recommends the enactment of H. R. 15131. Sincerely yours, The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS, CURTIS D. WILBUR, NAVY DEPARTMENT, Washington, June 26, 1926. United States Senate. MY DEAR MR. CHAIRMAN: Replying further to the committee's letter of May 25, 1926, forwarding bill S. 4332 "To authorize the Secretary of the Navy to modify agreements heretofore made for the settlement of certain claims in favor of the United States," and requesting the views and recommendations of the Navy Department thereon, I have the honor to inform you as follows: During the war and in connection with cost-plus contracts for construction of naval vessels the Navy Department agreed to advance money for the extension of plants in shipyards or fabricating shops for the erection of additional buildings and, in some cases, for machinery. These agreements provided that the buildings and equipment should at the end of the war be purchased by the contractor at an appraisement to be made by the compensation board. In most cases the contractor adjusted the indebtedness arising in this manner by giving notes payable annually without interest, either with or without a cash payment. Attached hereto is a schedule showing the contractors who gave such notes that remain unpaid, the date of the making and the maturity of each, and the amount of the principal, together with the present value of the obligation of each debtor concerned with the resulting discount, computed as of July 1, 1926, at 42 per cent interest. In most cases the security held by the United States is the retention of title to the buildings while the title to the land on which they were erected remains in the contractor. The bill S. 4332 was referred to the Bureau of the Budget with the information that the Navy Department contemplated a recommendation to the Committee on Naval Affairs that the bill be enacted, and under date of June 21, 1926, the Navy Department was informed that this proposed report would not be in conflict with the financial program of the President. In view of the foregoing and in the belief that it would be advantageous to the United States to receive settlement of these obligations before their maturity and at a discount, the Navy Department recommends the enactment of the bill. Sincerely yours, CURTIS D. WILBUR, A BILL to authorize the Secretary of the Navy to modify agreements heretofore made for the settlement of certain claims in favor of the United States Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Navy be, and he is hereby, authorized, in his discretion, to accept in full settlement from debtors of the United States the present value of all noninterest-bearing obligations for the repayment of money advanced to said debtors to assist them in carrying out contracts with the United States entered into during the late war, such contracts having been executed by the Secretary of the Navy on behalf of the United States or by others acting under his authority. SEC. 2. The words "present value," for the purpose of this act, shall be the outstanding amount of each obligation, reduced by the interest thereon from the date of settlement to the date of its maturity, such interest to be com puted at the highest rate being paid at the time of settlement on any bonds of the United States. |