In compliance with your request, a report was obtained from the Treasury Department concerning this legislation. That report, which is enclosed, sets out in detail the facts relating to the claim. Briefly stated, it appears that as a result of information furnished to an officer of the Customs Bureau by an employee or employees of the Cunard Steamship Co., a large quantity of gold valued at $171,197.60 was found concealed in a car which was about to be put on board the Steamship Queen Elizabeth for exportation to Europe. The owner of the car subsequently was arrested and convicted for violation of 12 United States Code 95 (a) and the gold was forfeited to the United States pursuant to section 4 of the Gold Reserve Act of 1934 (31 U. S. C. 443). Under section 619 of the Tariff Act of 1930 (19 U. S. C. 1619) the informer would have been entitled to an award of 25 percent of the value of the merchandise recovered, or the amount of the award specified in the bill, but the merchandise in this case was seized and forfeited for violation of the Gold Reserve Act of 1934. The Treasury Department states that it is not opposed to the payment of sce awards because it considers that they may be desirable in the interest of improved enforcement of the gold laws and regulations. It appears, however, that there exists some doubt as to whether this claimant was solely responsible for the discovery of the gold or whether one, August del Casale, a stevedore employed by the Cunard Steamship Co., also contributed certain information which led to the discovery. In this connection, the Treasury Department sets out in its report all of the evidence on file with regard to the claims of the two men but makes no recommendation with respect to the relative merits of either claim. In view of the fact that the evidence in this case as to whether 1 or 2 individuals are rightfully entitled to the award is conflicting, the Department of Justice is of the opinion that the question of the correct distribution of the award is one which might be more appropriately determined by the Congress. Accordingly, while this Department has no objection to the enactment of a bill which would reward the person or persons who were responsible for the discovery of the gold, it desires to leave to the discretion of the Congress the identification of such person or persons. The Bureau of the Budget has advised this office that there would be no objection to the submission of this report. Sincerely, A. DEVITT VANECH, Deputy Attorney General Hon. A. DEVITT VANECH, DEPARTMENT OF THE TREASURY, Deputy Attorney General, Department of Justice, Washington 25, D. C. DEAR SIR: Reference is made to your letter of February 28, 1952, requesting the views of this Department on S. 2659, for the relief of Matthew J. Berckman. The legislation would direct the Secretary of the Treasury to pay, out of any money in the Treasury not otherwise appropriated, to Matthew J. Berckman of Jersey City, N. J., the sum of $42 799.40, in full satisfaction of his claim against the United States for furnishing information which led to the discovery and forfeiture to the United States, of gold bullion, valued at $171,197.60, about to be shipped unlawfully out of the United States. On February 15, 1951, as a result of information furnished to an officer of the Customs Bureau by an employee (or employees) of the Cunard Steamship Co., a large quantity of gold valued at $171,197.60 was found concealed in a 1950 model Buick sedan automobile at pier 50, North River, N. Y., as it was about to be laden on board the steamship Queen Elizabeth for exportation to Europe. Saul Chabot, who was the registered owner of the vehicle and had booked passage on the steamship Queen Elizabeth was arrested and subsequently convicted of violation of section 95 (a) of title 12, United States Code. On May 19, 1952, the gold in question was forfeited to the United States by the United States District Court for the Southern District of New York, under the provisions of section 4 of the Gold Reserve Act of 1934 (31 U. S. C. 443). It is established that Inspector of Customs Howard T. Walter was the first agent of the Customs Bureau to receive information from the employee or em ployees) of the steamship company that there might be illegal merchandise con cealed in the automobile and that this information led directly to the discovery and seizure of the gold in question by Inspector Walter and other customs agents who assisted him. Under these circumstances, it appears that the informer would have been entitled to an award of 25 percent of the value of the merchandise or approxinately the sum specified in the bill under section 619 of the Tariff Act of 1930 (19 U. S. C. 1619), if the recovery had involved merchandise forfeited to the Government under the customs or navigation laws. However, the merchandise in question was seized and forfeited for violation of the Gold Reserve Act of 1934 As a matter of policy, the Treasury Department is not opposed to the payment of awards to persons furnishing information leading directly to seizures and forfeitures under the Gold Reserve Act of 1934. as in this case, and considers that payment of such awards as provided for in the proposed bill may be desirable in the interest of improved enforcement of the gold laws and regulations. However, the Department believes that the total of all informer awards paid in connection with any particular seizure and forfeiture under the Gold Reserve Act of 1934 should not exceed a maximum of 25 percent of the value of the gold so seized and forfeited. In this connection, the Department has learned that in addition to Matthew J. Berckman, the recipient of an award under the proposed private bill, there is another claimant, August del Casale, a stevedore employed by the Cunard Steamship Co., who alleges that he is entitled to an award for the giving of information leading to the seizure and forfeiture of the gold in question. It is reported that del Casale has retained counsel to present his claim to such an award. The original records of the Department with respect to the seizure, and supplementary reports and affidavits received since views of the Department were requested, reveal some discrepancy with respect to the question of whether Matthew J. Berckman, alone, or in conjunction with a fellow employee, said August del Casale, furnished the information leading to discovery and seizure of the gold. In considering the proposed bill and in determining the amount or amounts which should be authorized for payment to either one or both of the claimants to an award, within the maximum total amount of $42,799.40 recommended by the Department, it is believed that the committee may wish to consider the following summary of information obtained by the Treasury Department with respect to the facts in the case: 1. In a brief memorandum report dated February 16, 1951, the day following the seizure, Inspector Walter stated in part: "At about 2 p. m. Mr. Berckman informed me that the cars were ready to be laden on board the Steamship Queen Elizabeth. I went out on the pier to inspect said cars. *** Mr. Berckman called my attention to the sagging of the car in the rear. On further examination, I found *** conditions [which] aroused my suspicion, etc." 2. Inspector Walter died 3 weeks later on March 8, 1951. 3. By letter to the collector of customs, New York City, Matthew J. Berckman made formal claim for an award of 25 percent of the value of the gold recovered. 4. In a reply dated March 15, 1951, the supervising customs agent advised Berchman that section 619 of the Tariff Act provided for payments to informers only in cases of violations of the customs laws and not in cases of violations of the Gold Reserve Act. 5. On July 16, 1951, after teletype approval, Matthew J. Berckman was paid $1,000 by the customs service for the information furnished by him, under the special customs appropriation for the purchase of information. 6. In preparing the resulting criminal case for trial, some months later customs agents interviewed Berckman and del Casale as prospective witnesses. Their reports indicate that both Berckman and del Casale, in separate interviews, confirmed that the car in question was delivered to Berckman, pier checker, about 10:45 a. m. on February 15, 1951, and del Casale, a stevedore, had unexpected trouble getting under the rear of the car to remove the gasoline, and made his difficulties known by shouting out to Berckman who was inspecting the trunk in the presence of the owner, Saul Chabot. The statement of Berckman indicates that his suspicions were aroused by the way the car hung low in the rear, and by the nervous actions by Chabot, the owner, and that after lunch at about 2 p. m. he alone sought out the customs inspector and told him of his suspicions and this information led to the detection and seizure of the gold. Del Casale's statement, however, indicates that both he and Berckman saw Inspector Walter in the morning shortly after del Casale had difficulty getting under the car and informed him that they thought there might be something concealed in the car as it was unusually low; that they were instructed by Walter to leave the car alone and he would call special customs searchers. 7. In further interviews requested by the Customs Bureau since the proposed bill was introduced, Berckman and del Casale repeated the above statements. Del Casale added, however, that he was also present at 2 p. m when he and Berekman again informed Inspector Walter of their suspicions and were told that the situation had been reported and the cargo searchers were on their way. His statement suggests the possibility that Berckman may not have been aware in the morning that he gave Inspector Walter information about his suspicions although Berckman was standing about 10 feet away. 8. Two persons at pier 90 informed a customs agent investigating the matter recently that on the morning of the seizure at approximately 11 o'clock they observed del Casale talking to Inspector Walter; that they were present because just prior to that time word had gone around the pier that something was wrong with an automobile which might have contraband concealed in it; resulting in a gathering of curious onlookers. The Treasury Department is of the opinion that the foregoing information and views should be brought to the attention of the committee in connection with its consideration of the proposed bill. Very truly yours, JOHN S. GRAHAM, Acting Secretary of the Treasury. (Copy of a signed statement by Howard T. Walter in the files of the Bureau of Customs, Washington, D. C.) The SURVEYOR OF CUSTOMS, Port of New York. FEBRUARY 16, 1951. SIR: As inspector assigned to the lading of cargo and baggage of the British steamship Queen Elizabeth which arrived from England on February 13, 1950, and docked on the south side of pier 90 North River, N. Y., I respectfully submit the following report: On February 15, 1951, I was furnished with a list of automobiles by Mr. Matthew J. Berckman, receiving clerk of the baggage department of the Cunard Steamship Co., Inc. This list showed the make of car, name, and address of owner. I instructed Mr. Berckman that when the cars arrived to inform me and I would make my inspection. At about 2 p. m. Mr. Berckman informed me that the cars were ready to be laden on board the steamship Queen Elizabeth I went out on the pier to inspect said cars. On inspection of a 1950 Buick sedan, bearing license plates QC 3237 NY-1951, Mr. Berckman called my attention to the sagging of the car in the rear. On further examination, I found the rear bumper was nicked in a great many places and that in the trunk of the car which contained one spare tire, that a welding job had been done. These conditions aroused my suspicion as I did not believe that the weight of a spare tire would cause the rear of the car to bear so heavily on the rear springs. I then telephoned Deputy Collector B. A. Costello, of the cargo division and requested that the special squad be sent to make a more detailed examination. On their examination they found a quantity of gold in packets concealed in the forward part of each rear fender. Customs Agent G. Lundy was called and removed the Buick sedan with the gold from the pier to the United States Appraisers Stores, 201 Varick St., New York City. The British steamship Queen Elizabeth sailed at 1 a. m., February 16 for Eng land. The owner of the vehicle is Saul Chabot of 209 E. 18th Street, New York City. Respectfully, (Signed) HOWARD T. WAlter, Inspector of Customs No. 3517, Station 21, District No. 6. JULY 30 (legislative day, JULY 27), 1953.—Ordered to be printed Mr. LANGER, from the Committee on the Judiciary, submitted the following REPORT [To accompany H. R. 777] The Committee on the Judiciary, to which was referred the bill (H. R. 777) for the relief of Richard H. Backus, having considered the same, reports favorably thereon, without amendment, and recommends that the bill do pass. PURPOSE The purpose of the proposed legislation is to authorize and direct the Comptroller General of the United States to credit the accounts of Richard H. Backus, of Fernow Hall, Cornell University, Ithaca, N. Y., with the sum of $313.12 representing the value of Government property lost for which he was held accountable while in his custody as first lieutenant, Army Air Force. STATEMENT The records of the Department of the Air Force disclose that on or about August 30, 1945, Lieutenant Backus arrived at the Air Transport Command Terminal, LaGuardia Field, New York City, and inquired of the baggage attendant where he could store his equipment until departure time. Lieutenant Backus deposited his baggage in the place indicated, and upon his return found the baggage was gone. He was then advised that the place where he was directed to deposit the baggage was known as the lost and found department, and learned that his baggage had been so treated. He made every possible effort to locate the baggage but without favorable results. The Department of the Air Force was unsuccessful in ever locating the baggage. The value of it was charged to the claimant. Lieutenant Backus was advised to call or write the central lost and found depart ment, Fort Totten, N. Y. He contacted that organization, but with no success. When Lieutenant Backus arrived at his destination, St. Joseph, Mo., he wrote a letter to the central lost and found department and advised the provost marshal at St. Joseph of his loss. On July 17, 1946, Lieutenant Backus initated a report of survey. The duly appointed board which acted upon the report of survey recommended that Lieutenant Backus be held pecuniarily liable in the amount of $313.12. This was approved by authority of the Secretary of War, on February 7, 1946. Under War Department policy, some individual was responsible at all times for the care and safekeeping of War Department property whether or not he had receipted for it. The Department of the Air Force opposed an identical bill of the last Congress on the ground that Lieutenant Backus was negligent within the meaning of the regulation in not providing a safe place for his equipment during his absence. The committee is not in agreement with the adverse report of the Department of the Air Force. While the regulations hold an officer accountable for the safekeeping of Government property, it does not make him an absolute insurer. Lieutenant Backus delivered the property to the Government when he deposited it as directed. At that moment, the Government had it and if the attendant diverted or lost it, it was not the fault of the claimant. The committee further notes that to this day the Government has never been able to locate the property. The committee believes that it would not be equitable for this property to be charged to this officer, when responsible Government authorities having said property in their possession have never been able to locate the same. For these reasons, the committee therefore recommends favorable consideration of this bill H. R. 777. Attached to this report and made a part hereof is the report of the Department of the Air Force submitted in connection with an identical bill of the last Congress and other evidentiary data submitted in connection with this claim. DEPARTMENT OF THE AIR FORCE, Hon. EMANUEL CELLER, Chairman, Committee on the Judiciary, House of Representatives. DEAR MR. CHAIRMAN: I refer to your request for the Department of the Air Force views with respect to H. R. 8025, a bill for the relief of Richard H. Backus, The purpose of H. R. 8025 is to authorize and direct the Comptroller Genera of the United States to credit the accounts of Richard H. Backus with the sum of $313.12, representing the value of Government property lost, for which was held accountable while in his custody as first lieutenant, Army Air Force. The facts obtained from the report of survey in this case show that on or about August 30, 1945, Lieutenant Backus arrived at the Air Transport Command Terminal, LaGuardia Field, New York City, and inquired of the baggage attendant where he could store his equipment until departure time. The baggage attendant pointed to a baggage rack and said "put it there." Lieutenant Backus placed his equipment on the rack and left the terminal. Upon his return to the terminal on or about September 1, 1945, he went to the rack and discovered his equipment to be missing. Inquiry disclosed that the rack in question was a "lost and found" baggage rack and his equipment had been treated in that category. Lieutenant Backus was advised to call or write the central lost and found department, Fort Totten, N. Y. He called this organization, but with no success. Whea Lieutenant Backus arrived at his destination, St. Joseph, Mo., he wrote a letter |