directed him to go to the office. When he arrived at the office he was informed that Special Agent E. R. Davis, of the Federal Bureau of Investigation, had been endeavoring to trace the passers of counterfeit $10 Federal Reserve notes, and had in his custody Max Zarrani. A room at the hotel was registered to Max Zarrani and his brother Nathan. Max Zarrani was placed in Mr. Neal's care until a police officer arrived at the hotel and the prisoner was then turned over to the policeman. Special Agent Davis and Mr. Neal then went to room 216 of the hotel for the purpose of investigating Nathan Zarrani, who was also suspected of being in the plot. Davis told the occupant that they would have to investigate the room because of the fact a counterfeit bill had recently been passed and the passer traced to that hotel. Davis and Neal proceeded to make a thorough search of the room. Nothing was found and Davis concluded that it was best to call for assistance in placing Nathan Zarrani in custody. Davis then left the room, with Neal guarding Zarrani while he (Davis) went to call a deputy United States marshal. In the absence of the special agent, Neal observed a small zipper bag hidden between the dresser and the wall, and upon examining the contents discovered 80 counterfeit $10 notes contained therein among other items. Nathan denied that the bag or its contents belonged to him, and Neal closed the bag, holding it in his left hand, and continued to guard the suspect, placing himself between the man and the door. At this time Nathan Zarrani made a violent assault upon Neal in an effort to obtain possession of the bag and escape, and in the struggle that ensued, Neal managed to retain possession of the bag. United States Marshal Cleagle Field, who had been called to the hotel, arrived on the scene at this moment and assisted Neal in subduing the prisoner. Special Agent Davis returned to the room shortly thereafter and Nathan was removed to police headquarters. The Secret Service Division of the Treasury Department was notified through its field office in Nashville, Tenn., and then assumed proper jurisdiction over this case. In preventing the escape of Nathan Zarrani, T. Jack Neal suffered severe physical injury. He was taken to the Fort Sanders Hospital and confined there for about 1 week. Dr. R. T. Oppenheim, the attending physician, found that he had received a fracture of the nose; cut on upper left lip; contusions over left cheek bone, and contusions over region of the stomach; considerable shock and nausea. Three teeth were broken from his bridge plate and a comparatively new suit of clothes ruined, being torn and saturated with blood. Mr. Neal's wife lost several days from her employment in a local bakery in order to assist in his care at the hospital. On June 30, 1939, Dr. Oppenheim advised the Treasury Department that there appeared to be no permanent injuries to Mr. Neal with the exception of a scar on his lip, but that at that time he complained of stomach pains, which indicated possible internal injuries. In appreciation and recognition of the services rendered by Mr. Neal, the Secret Service Division favored him with a reward which was limited to $75 because of available appropriations for such purposes. In view of all the circumstances, the Treasury Department "is in hearty accord with the granting of appropriate recognition for Mr. Neal's services." However, the Department makes no recommendation with respect to the amount to be paid to Mr. Neal, believing that the determination of such amount should be left to the discretion of Congress. After having carefully gone into this case, it is the opinion of your committee that $1,500 would be a proper amount to pay Mr. Neal, partly to cover the expenses incident to his injury, and partly to serve as a reward for his brave and valuable service to the Government. Appended hereto is the report of the Treasury Department, together with other pertinent evidence. TREASURY DEPARTMENT, Hon. AMBROSE J. KENNEDY, Chairman, Committee on Claims, House of Representatives. DEAR MR. CHAIRMAN: Your request of June 14, 1939, addressed to the Attorney General for a report on H. R. 6686, a bill "For the relief of T. Jack Neal," has been referred to the Treasury Department for appropriate action since the matter involved is under the jurisdiction of this Department. The facts surrounding the injury of T. Jack Neal are as follows. On April 21, 1939, at about 6:30 p. m., Special Agent E. R. Davis, in charge of the Knoxville, Tenn., office of the Federal Bureau of Investigation, Department of Justice, arrested one Max Zarrani, with aliases, in the Farragut Hotel, Knoxville, Tenn., in connection with the passing of a counterfeit $10 note in that city. Special Agent Davis called upon Mr. T. Jack Neal, special officer employed by this hotel, who assisted in guarding the prisoner until police officers arrived and removed him to the station house. Detective Neal then accompanied Special Agent Davis to a second-floor room, registered to Max Zarrani and his brother, Nathan, under assumed names, and assisted in gaining entrance. Nathan was found to be occupying the room at this time and Special Agent Davis requested Neal to guard him in the room while he went to the first floor telephone to call in an employee of a nearby store, upon whom one of the counterfeit notes had been passed, in an effort to have Nathan identified as the passer. In his absence, Neal observed a small zipper bag hidden between the dresser and the wall and upon examining the contents discovered 80 counterfeit $10 notes contained therein among other items. Nathan denied that the bag or its contents belonged to him, and Neal closed the bag, holding it in his left hand, and continued to guard the suspect. Nathan Zarrani then attacked Neal in an effort to obtain possession of this bag and escape. United States Marshal Cleagle Field, of Knoxville, Tenn., who had been called to the hotel, arrived on the scene at this moment and assisted Neal in subduing the prisoner. Special Agent Davis returned to the room shortly thereafter, and Nathan was removed to police headquarters. The Secret Service Division of the Treasury Department was notified through its field office at Nashville, Tenn., and then assumed proper jurisdiction over this case. In preventing the escape of this counterfeit-note passer, T. Jack Neal suffered severe physical injury. He was taken to Fort Sanders Hospital in Knoxville and confined there about 1 week. Dr. R. T. Oppenheim, the attending physician, found that he had received a fracture of the nasal bones, lacerations about the nose, contusions and swelling of the left cheek, cuts in upper left lip and right ear, and contusions over the stomach. Three teeth were broken from his bridge plate and a comparatively new suit of clothes ruined, being saturated with blood and torn. Mr. Neal's wife lost several days from her employment in a local bakery in order to assist in his care at the hospital. Dr. Oppenheim advised the supervising agent of the Secret Service office at Louisville, Ky., on June 30, 1939, that there now appears to be no permanent injury to Mr. Neal with the exception of a scar on his lip from a lacerated wound but that he complained on June 29, 1939, of stomach pains which indicate possible internal injuries. In appreciation and recognition of the services rendered by Mr. Neal, the Secret Service Division favored him with a reward which was limited to $75 because of available appropriations for such purposes. In view of all the circumstances the Department is in hearty accord with the granting of appropriate recognition for Mr. Neal's services. However, it is believed that the sum of $2,500, proposed by H. R. 6686, is probably somewhat excessive and should be reduced to a more reasonable figure. The Department makes no recommendation with respect to the amount to be paid to Mr. Neal, believing that the determination of such amount should be left to the discretion of Congress. It might be stated as a matter of information that the Zarrani brothers admitted the purchase of about $1,200 in counterfeit $10 Federal Reserve notes in New York City on or about April 19, 1939, and passed approximately 40 such notes in Knoxville, Tenn., on April 21, 1939. They pleaded guilty as charged and on May 24, 1939, were sentenced by Federal Judge George C. Taylor in the United States District Court at Knoxville to serve 6 years each in a Federal penitentiary to be designated. Complaints have been filed against these men at Norfolk, Va., for possessing and passing counterfeit notes in that district. They have identified photographs of several suspected counterfeit note distributors in New York City from whom they claim to have made several purchases of notes and the Secret Service Division is investigating their alleged connections in an effort to locate the source of these notes. Very truly yours, HERBERT E. GASTON, Acting Secretary of the Treasury. Hon. J. WILL Taylor, House of Representatives, Washington, D. C. CATES, SMITH & LONG, Knoxville, Tenn., May 31, 1939. MY DEAR CONGRESSMAN: Mr. T. Jack Neal, house detective at the Farragut Hotel, in Knoxville, tells me that you would like a statement as to his connection with the arrest of Max and Nathan Zarrani, in the Farragut Hotel, April 21, 1939, as the result of which these men have been convicted for possessing and passing counterfeit $10 Federal Reserve notes. Mr. Neal has been employed as a detective by the Farragut Hotel since about the first of August 1938. His duties require him to work at night and he goes on duty usually about 6 o'clock in the afternoon. Shortly after he went on duty late in the afternoon of April 21, and while he was making his rounds in the hotel, a messenger from the office directed him to come down to the office. When he got to the office he found that Mr. E. Russell Davis, of the Federal Bureau of Investigation, was endeavoring to trace the passers of counterfeit $10 Federal Reserve notes, and had in his custody, Max Zarrani, charged with passing one of these notes. He placed the man in Neal's care until he could call a police officer and then turned the prisoner over to the police officer while he and Neal went to room 216 of the hotel for the purpose of investigating the presence of another guest of the hotel suspected of being in the plot. Mr. Davis and Neal went to room 216 and found therein Nathan Zarrani, a brother of Max Zarrani. Mr. Davis announced to this man that they would have to investigate the room because of the fact that a counterfeit bill had very recently been passed and the passer traced to the hotel. Davis and Neal proceeded to make a thorough search of the room. Nothing was found and Davis concluded it was best to call for assistance in placing the man in custody and left the room, with Neal guarding Nathan Zarrani while he went to call a deputy United States marshal. Some time elapsed while Davis was gone and Neal happened to see the corner of a small tan bag hidden behind the leg of the dresser, which had been overlooked in the search of the room. Neal went to the dresser and pulled out this bag and upon opening it discovered considerable amount of money therein. He then remarked to Zarrani that he, Neal, thought Zarrani didn't have any baggage and the man replied that the bag was not his and he didn't know about its being there. Neal closed the bag and placed himself between the man and the door, and about this time Zarrani made a violent assault upon Neal while he was off guard and in the struggle that ensued Neal managed to retain possession of the bag of money. During the melee and while Zarrani was raining blows upon Neal, Neal was doing his best to keep him from seizing the bag and about this time the deputy United States marshal dashed into the room and covered Zarrani with a pistol and he was placed under arrest. It was found that there was about $800 of counterfeit $10 bills in the bag and several hundred dollars of good money. As a result of this arrest both Nathan and Max Zarrani were prosecuted in the United States district court, at Knoxville, and entered pleas of guilty on May 24. Neal was knocked unconscious by the assault of Zarrani and spent 6 days in the hospital under the care of Dr. Oppenheimer. An X-ray showed that his nose was fractured and he was badly bruised about the face, mouth, neck, and body. He lost more than 3 weeks from his work. There is attached copies of an orignal letter from Mr. J. F. Wilson, Chief of the Secret Service, Washington, D. C., under date of May 17, 1939, highly complimenting Neal upon his assistance to the officers, and delivering to him a check in the sum of $75 as a reward for his services. If there is any further information you desire about this matter I will be glad to furnish it in Neal's behalf. No doubt the files of the Secret Service Division, at Washington have a complete report of the secret-service agents detailing his heroic conduct. With best wishes always, I am, WILBUR W. PIPER. TREASURY DEPARTMENT, Washington, D. C., May 17, 1939. Re: Arrest of Max and Nathan Zarrani Cft. $10 FR (716) note passers. Mr. T. JACK NEAL, House Detective, Farragut Hotel, Knoxville, Tenn. DEAR MR. NEAL: Mr. Alonzo A. Andrews, supervising agent, district No. 7, United States Secret Service, has reported to me upon the detection and arrest of the above-named counterfeit note passers. The counterfeits involved are widely circulated and have proved troublesome to our Service; for this reason, we consider the arrest of the Zarrani brothers one of the most important of the year. Through it we hope to locate and destroy the plant manufacturing these notes. I am further informed that you played a most conspicuous part in the above arrest. My gratification at your success, however, is tempered with great concern over the numerous physical injuries inflicted upon you by Nathan Zarrani, who resisted arrest. We regret, naturally, that it proved necessary to sustain these injuries while performing your duty. As a token of our appreciation and esteem, please accept the attached check for $75. We are making this reward in line with our policy to recognize assistance given us by citizens in outstanding counterfeit cases. Very sincerely yours, FRANK J. WILSON, To Whom It May Concern: KNOXVILLE, TENN., May 31, 1939. Mr. T. J. Neal, house detective, Farragut Hotel, was under my professional care at Fort Sanders Hospital from April 21, 1939, to and including April 26, and came to my office for treatment almost daily from April 26 to and including May 12, 1939. He was attacked while guarding some counterfeiters and received the following injuries: Fracture of the nose, cut on upper left lip, contusion over left cheekbone and over region of stomach, and was otherwise scratched and bruised about the body. Mr. Neal suffered considerable shock and nausea and vomited almost constantly for 24 hours. X-ray findings of his head were negative with the exception of fractured nose. R. P. OPPENHEIMER, M. D FORT SANDERS HOSPITAL, Knoxville, Tenn., May 16, 1939. Mr. JACK NEAL, Dr., 412 West Vine Avenue, City. To hospital service as follows: From Apr. 21 to 26, 1939: Room, 5 days, at $4 per day. Drugs... Laboratory and X-ray, $1 and $15___ Total___ о $20.00 1.35 16. 00 37.35 |