JUNE 12 (legislative day, MAY 28), 1940.-Ordered to be printed Mr. ELLENDER, from the Committee on Claims, submitted the following REPORT [To accompany H. R. 1846] The Committee on Claims, to whom was referred the bill (H. R. 1846) for the relief of Malachy Ryan, having considered the same, report favorably thereon with the recommendation that the bill do pass without amendment. The facts are fully set forth in House Report No. 1854, Seventysixth Congress, third session, which is appended hereto and made a part of this report. [H. Rept. No. 1854, 76th Cong., 3d sess.] The Committee on Claims, to whom was referred the bill (H. R. 1846) for the relief of Malachy Ryan, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. The purpose of the proposed legislation is to authorize and direct the Comptroller General of the United States to credit the account of Malachy Ryan, former acting postmaster at Caledonia, Minn., with the sum of $109, lost by reason of burglary occurring in his office on May 8, 1933. STATEMENT OF FACTS In the Seventy-fourth Congress a bill, H. R. 5550, was introduced in behalf of Malachy Ryan, proposing to credit his accounts with the amount of $573.75. In the consideration of this bill your committee, in accordance with its usual custom, called for reports from the Government departments involved, and the General Accounting Office submitted a report to your committee under date of April 16, 1935, which reads in part as follows: "It is noted that the bill, H. R. 5550, provides relief to Malachy Ryan in the amount of $573.75, although as above set out his report indicates that only $464.75 was paid on money orders from May 1 to 8, 1933. Nevertheless, he claimed credit in his account for the sum of $573.75, which includes two money orders totaling $109 shown by his report to have been paid May 9, the day following the burglary. The relief proposed should accordingly be reduced to a maximum of $464.75, if the Congress believes that the equities of the situation require the granting of relief." Accordingly, a bill in the amount of $464.75 was approved August 24, 1935, and was enacted as Private Law No. 290. The purpose of the bill now being reported is to credit the accounts of Malachy Ryan with the amount of $109 which represents the difference between $573.75, the amount originally proposed to be credited under H. R. 5550, and the amount authorized for crediting, that is, $464.75. Under date of October 30, 1935, Mr. Ryan wrote the General Accounting Office, as follows: "I have your correspondence of October 26, 1935, in reference to two money orders reported paid May 9, 1933. It has been the custom in the office that when the last mail for the day has been made up and sent out, which at that time was about 5:15 p. m., to balance the money-order book, change the dates in all the canceling stamps. These two orders were paid between that time and the time of closing the window at 6 p. m. Miss Blanche Pope, assistant postmaster, has been in the office about 15 years and had charge of the money-order book during my time in office and for previous postmasters and always handled it in the same way. She can verify to these two orders being in the envelope where they are kept from day to day and in the safe and stolen the night of the robbery. If you wish further information write the present postmaster or Miss Blanche Pope who is still in the office." Your committee is now in receipt of an affidavit from Blanche Pope, the assistant postmaster whom Mr. Ryan mentions in his letter, which will be hereafter appended. Miss Pope explains in her affidavit that it had been the custom of the post office of Caledonia after the last train had left the village to change the date on the canceling stamp for money orders and the date on the money-order book, and to balance the same for the day. She states that on May 8, 1933, at about 5:15 p. m. she changed the date on the canceling stamp for money orders from May 8 to May 9, 1933, and changed the date in the money-order book and balanced the book for the day of May 8, 1933. She further explains that after the hour of 5:15 p. m. and before the closing of the window at 6 p. m., she paid two money orders, one in the sum of $98 and one in the sum of $11, making a total of $109. Miss Pope further affirms that both of the money orders, though canceled as of May 9, 1933, were in truth and in fact cashed by her at the post office on May 8, 1933. In view of the above circumstances, and in view of the fact that the General Accounting Office has no objection to the enactment of the proposed legislation, your committee is of the opinion that Mr. Ryan's accounts should be credited in the amount of $109. Appended hereto are the reports of the General Accounting Office and the Post Office Department, together with the affidavit of Miss Blanche Pope. GENERAL ACCOUNTING OFFICE, Hon. AMBROSE J. KENNEDY, Chairman, Committee on Claims, House of Representatives. MY DEAR MR. CHAIRMAN: Further reference is made to your letter of February 7, 1939, with enclosures, acknowledged February 8, 1939, requesting a report on H. R. 1846, Seventy-sixth Congress, first session, entitled "A bill for the relief of Malachy Ryan." The bill provides as follows: "That the Comptroller General of the United States be, and he is hereby, authorized and directed to credit the account of Malachy Ryan, former acting postmaster at Caledonia, Minn., with the sum of $109, lost by reason of burglary occurring in his office May 8, 1933." The amount of $109 proposed to be credited in the accounts of Malachy Ryan represents the difference between $573.75, the amount originally proposed to be credited in his accounts under H. R. 5550, Seventy-fourth Congress, and the amount authorized for crediting, to wit, $464.75, under the bill which was enacted as Private, No. 290, approved August 24, 1935 (49 Stat., pt. 2, 2173). There is enclosed for your information copy of report of this office dated April 16, 1935, on H. R. 5550, in which it is stated in part "It is noted that the bill, H. R. 5550, provides relief to Malachy Ryan in the amount of $573.75, although as above set out his report indicates that only $464.75 was paid on money orders from May 1 to 8, 1933. Nevertheless he claimed credit in his account for the sum of $573.75, which includes two money orders totaling $109 shown by his report to have been paid May 9, the day following the burglary. The relief proposed should accordingly be reduced to a maximum of $464.75, if the Congress believes that the equities of the situation require the granting of relief." In rebuttal of the foregoing Mr. Ryan states in letter dated October 30, 1935, to this office, as follows: "I have your correspondence of October 26, 1935, in reference to two money orders reported paid May 9, 1933. It has been the custom in the office that when the last mail for the day has been made up and sent out, which at that time was about 5:15 p. m., to balance the money-order book, change the dates in all the canceling stamps. These two orders were paid between that time and the time of closing the window at 6 p. m. Miss Blanche Pope, assistant postmaster, has been in the office about 15 years and had charge of the money-order book during my time in office and for previous postmasters and always handled it in the same way. She can verify to these two orders being in the envelope where they are kept from day to day and in the safe and stolen the night of the robbery. If you wish further information write the present postmaster or Miss Blanche Pope who is still in the office." Bills H. R. 10936 and 3044 for the relief of Mr. Ryan in said amount of $109 were introduced in the House of Representatives on February 5, 1936, and January 14, 1937, respectively, but no action appears to have been taken on said bills. It is assumed that the statements made by Mr. Ryan could be verified as he suggests only to the extent of the procedure followed in reporting the next day money-order transactions which occur late the preceding day. However, the facts as stated do not appear unlikely and if it be the judgment of your committee and of the Congress that such statements are true, this office perceives no reason for objection to the proposed relief. Sincerely yours, GENERAL ACCOUNTING OFFICE, Hon. AMBROSE J. KENNEDY, Chairman, Committee on Claims, House of Representatives. MY DEAR MR. CHAIRMAN: Further reference is made to your letter of March 25, 1935, acknowledged March 26, requesting a report on bill H. R. 5550, Seventyfourth Congress, entitled "A bill for the relief of Malachy Ryan," which bill provides as follows: "That the Secretary of the Treasury is hereby authorized and directed to pay, out of any money in the Treasury not otherwise appropriated, the sum of $573.75 to Malachy Ryan, former postmaster at Caledonia, Minn. Such sum represents paid money orders which were lost in the burglary of the post office at Caledonia, Minn., on May 8, 1933, from no fault or negligence on the part of the postmaster.' The records show that Malachy Ryan was acting postmaster at Caledonia, Minn., from May 19, 1931, to May 25, 1933, when he was succeeded by Patrick V. Ryan, acting postmaster. During the period of time here involved Čaledonia was a second-class direct-accounting post office. It appears that on May 8, 1933, the said post office was burglarized, and official funds, postage-stamped paper and internal-revenue stamps in the aggregate amount of $1,210.05 were stolen, together with all money orders which are alleged to have been paid during the first 8 days of that month-51 money orders amounting to $464.75. A post-office inspector recovered stolen postage-stamped paper of the value of $5.26; and the Postmaster General, under authority of the act of January 21, 1914 (38 Stat. 278), amended June 18, 1934 (48 Stat. 990), allowed Malachy Ryan credit for $1,204.79, the balance of the said loss of $1,210.05 resulting from the theft of official funds, postage-stamped paper and internal-revenue stamps Malachy Ryan was therefore relieved from all losses resulting from the burglary excepting the loss of the said paid money orders. In pertinent part, the statute above cited authorizes the Postmaster General to pay to or credit postmasters with the amount lost or destroyed through burglary, fire, or other unavoidable casualty, if he shall determine that such loss resulted from no fault or negligence on the part of such postmaster; but the statute covers only loss of "money-order funds, postal funds, postal-savings funds, postage stamps, stamped envelopes, newspaper wrappers, postal cards, postal-savings cards, postal-savings stamps, postal-savings certificates, United States war-savings certificate stamps, United States Government thrift stamps, war-tax revenue stamps, internal-revenue stamps, Federal migratory-bird hunting stamps, and funds received from sale of such stamps." It will be observed that the said statute does not provide relief from theft of paid money orders, and the Postmaster General properly refused to grant such relief. For many years it has been the practice of this office to allow credit for paid money orders lost by burglary, fire, or other casualty, on satisfactory proof of payment and loss of the money orders without fault or negligence of the postmaster. However, such is not the situation in the instant matter. Section 1440, Postal Laws and Regulations, 1932, provides: "As soon as practicable after the close of each day's business all coupons shall be detached from the paid money orders and such coupons and all advices of money orders paid shall be filed in proper order, alphabetically, according to the names of issuing offices and State or country of origin. At district offices the paid money orders shall be forwarded with the next requisition for stamp stock or remittance of surplus funds to the central accounting office and at direct accounting offices the paid orders shall be listed daily in duplicate on Form 6014, the original to accompany the orders to the Department and the duplicate to be retained as the record of payments. The advices of unpaid orders received each day shall be arranged in alphabetical order and kept in a separate file from the advices and coupons of paid orders." Section 277, paragraph 2, of the said regulations provides: "2. Postmasters at first- and second-class offices (except daily and quartermonthly offices, which receive special instructions) shall render the following money-order accounts to the Comptroller, Bureau of Accounts, Post Office Department, Washington, D. C.: * * * * * "(c) Monthly list of domestic money orders paid (Form 6014), accompanied with all paid and repaid domestic orders." Failing to comply with the regulations above quoted, the said Malachy Ryan made no record of the involved money orders, except as to the amount of each. In a letter dated August 7, 1933, his successor, Patrick V. Ryan, reported as follows: "Because no record, except as to the amounts, had been made of the 'issuing office number,' 'date of issue', and 'serial number' of the 53 paid money orders which were stolen when this office was burglarized on the night of May 8, 1933, I am unable to complete these 53 certificates for 'Lost or destroyed money orders.' These money orders were stolen while my predecessor, M. Ryan, was acting postmaster. "It seems it had been the practice in this office to list on Form 6014, Money Orders Paid, weekly or whenever there appeared to be enough of them to fill a column. This is the reason, I am informed, why there is no record of 'issuing office number,' 'date of issue,' and 'serial number." " There exists no information as to the issuing offices, the senders, the payees, the serial numbers, or the dates of the involved money orders, and it is consequently impossible to ascertain the facts concerning them. Malachy Ryan's statement is the only evidence of the existence and payment of the said money orders. His failure to furnish the essential detailed information, together with the fact that his said failure resulted from his noncompliance with the controlling regulations, made mandatory the disallowance by this office of the involved claims. However, it may well be assumed that some money orders were paid by the Caledonia post office during the period from May 1 to May 8, 1933, and the amount claimed by Mr. Ryan does not appear to be disproportionate to amounts paid on money orders during other similar periods. For example, money orders paid by the said post office during the succeeding period of 17 days from May 9 to May 25, 1933, amounted to the total sum of $1,145.02. It is noted that the bill, H. R. 5550, provides relief to Malachy Ryan in the amount of $573.75, although as above set out his report indicates that only $464.75 was paid on money orders from May 1 to May 8, 1933. Nevertheless he claimed credit in his account for the sum of $573.75, which includes two money orders totaling $109 shown by his report to have been paid May 9, the day following the burglary. The relief proposed should accordingly be reduced to a maximum of $464.75, if the Congress believes that the equities of the situation require the granting of relief. Furthermore, the bill as drawn would require payment of money to Mr. Ryan. Inasmuch as he is withholding the involved sum from postal receipts and his account shows a balance of $585.95 due from him to the United States, on this and other items, the bill should be amended so as to provide that his money-order account be credited with the involved sum of $464.75, instead of requiring a payment to him. Accordingly the following substitute language is suggested, if the bill is to be favorably considered for enactment: "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Comptroller General of the United States |