To the Congress of the United States:

I commend to the favorable consideration of the Congress the enclosed report from the Secretary of State, to the end that legislation may be enacted to authorize an appropriation of not exceeding $44,446.05 for the payment of interest on funds represented by drafts drawn on the Secretary of State by the American Embassy in Petrograd and the American Embassy in Constantinople and transfers which the Embassy at Constantinople undertook to make by cable communications to the Secretary of State between December 23, 1915, and April 21, 1917, in connection with the representation by the Embassy of the interests of certain foreign governments and their nationals.

THE WHITE HOUSE, December 10, 1931.

The PRESIDENT:

HERBERT HOOVER.

In a message of March 24, 1926, to the President, the Secretary of State set out the following information concerning certain claims for interest on account of delay in the payment of drafts drawn on the Secretary of State by the American Embassy in Constantinople and transfers which the Embassy undertook to make by cable communications to the Secretary of State between December 23, 1915, and April 21, 1917, in connection with the representation by the Embassy of the interests of certain foreign Governments and their nationals:

"Following the outbreak of the war in 1914 the diplomatic and consular representatives of the United States in Turkey assumed the representation of the interests in that country of Great Britain, France, Italy, and Russia. This responsibility involved the distribution of relief money from funds supplied through the Department of State by the foreign governments, either voluntarily or upon the request of the representatives of the United States.

"In order to avoid the delays incidental to this procedure, Congress provided an appropriation from which the advancement of relief funds by the United States was authorized as follows:

"To enable the United States to fulfill an obligation devolving upon it in connection with or growing out of its representation of the interests of foreign governments and their nationals, and to extend temporary assistance to other governments and their nationals, made necessary by hostilities in Europe and elsewhere, by transferring or advancing funds for the diplomatic and consular expenses and for the care or benefit of citizens or subjects of foreign nations * * to be available during the fiscal year 1915, and to be disbursed under the direction and in the discretion of the Secretary of State: Provided, That payments made by foreign governments or their citizens or subjects shall be credited to this appropriation and to be available for the purpose herein specified: Provided further, That all sums received by the United States in final reimbursement of amounts paid by it out of the $1,000,000 herein appropriated shall be paid into the Treasury of the United States as 'miscellaneous receipts.'

"The unexpended balance of the foregoing appropriation was made available during the fiscal years 1916 and 1917 by the deficiency appropriation acts approved March 4, 1915, and September 8, 1916, respectively.

"Between December 23, 1915, and April 21, 1917, some 896 drafts, totaling approximately $4,500,000 were drawn on the Secretary of State by the American Embassy at Constantinople, mainly for expenditures on behalf of the nationals of the foreign governments which it represented. Of this sum, drafts aggregating more than a million dollars were not presented for payment until after February 1919, at which time the reappropriations made by Congress were insufficient to meet them. There were also cable transfers amounting to $450,000 which were not promptly paid. In these cases the Embassy received money from individuals or firms for the relief of nationals of foreign governments on the undertanding that the Department of State would pay to a designated individual or bank in the United States the equivalent in dollars. Telegraphic notifications of these amounts were received by the Department from the Embassy between October 2, 1916, and April 10, 1917, the amounts involved ranging from $10,000 to $50,000. "The money obtained abroad was expended by the Embassy while the equivalent was not paid by the Department of State until some time later. The failure to pay these cable transfers, as well as the failure to meet the drafts, was due, in part, as indicated above, to the lack of funds readily available, and in part to the fact that it was not clear in some cases to what appropriation the payments were chargeable. After the appropriations had lapsed payment could only be

made from time to time as remittances were received from interested foreign governments. Consequently, it was not until March 28, 1922, that the last of the obligations was paid. On account of this delay in payment, certain banks and attorneys acting as agents for the holders of some of the drafts, and for the individuals and firms who had advanced the money represented by the cable transfers have filed claims with the Department for the payment of interest. The claims have also been espoused in some instances by foreign diplomatic representatives at this capital."

The message then sets out a detailed list of the claims for interest totaling $108,971.12. This message is printed as Senate Document 86, Sixty-ninth Congress, first session, and in pursuance thereof private act no. 443 appropriating $108,971.12 for settlement of the claims stated was passed by the Congress on March 3, 1927 (44 Stat. p. 1805).

Since the passage of this act additional claims have been presented to the Department as follows. These drafts were all drawn by the American embassy at Constantinople except no. 169, on which the Riggs National Bank is claiming interest on behalf of Banque de Salonique, Constantinople. This draft was drawn by the American Embassy at Petrograd:

CLAIM OF THE CRÉDIT LYONNAIS, PARIS, FRANCE

This claim represents interest at the rate of 4% percent for the period of time during which payments of the drafts listed below were delayed:

CLAIM OF THE RIGGS NATIONAL BANK, OF WASHINGTON, D. C. This claim represents interest at the rate of 4% percent for the period of time during which payments of the drafts listed below were delayed:

CLAIM OF BROWN BROS. & CO., 59 WALL STREET, NEW YORK CITY This claim represents interest at the rate of 4% percent for the period of time during which payments of the drafts listed below were delayed:

CLAIM OF THE BANK OF NEW YORK & TRUST CO., NEW YORK CITY This claim represents interest at the rate of 44 percent for the period of time during which payments of the drafts listed below were delayed:

CLAIM OF BERG BERGAMALI, NO. 3 CHEPSTOW STREET, MANCHESTER, ENGLAND

This claim is for the balance of interest due on draft no. 643, for $3,600, dated February 16, 1917, drawn by Abram I. Elkus, American Ambassador to Turkey. The draft was taken up in the act approved March 3, 1927, and interest computed on $3,000 instead of $3,600. Hence, the interest due on the balance of $600 is now being claimed. The draft was presented for payment on April 23, 1920, and paid August 18, 1921. Therefore, being a 15-day draft, the payment was deferred 460 days. Interest on $60, at 4% percent, for 460 days is $36.36.

CLAIM OF THE WIENER BANK VEREIN BY THEIR REPRESENTATIVE, RUDOLPH HAHN, 17 BATTERY PLACE, NEW YORK CITY

This claim represents interest at 44 percent on two cable transfers, telegram no. 2403, for $100,000 dated January 13, 1917, and received by the Department January 15, 1917, and telegram no. 2416, for $50,000 dated February 25, 1917, and received by the Department February 28, 1930. The transfer of $100,000 was paid in two installments of $50,000 each on October 18, 1920, and August 18, 1921. The transfer of $50,000 was paid on July 11, 1921. claimed is as follows:

Interest for period of delay on the transfer of $100,000:

On the first $50,000 (3 years 9 months 3 days).
On the last $50,000 (4 years 7 months 3 days).

The interest

Interest for period of delay on the transfer of $50,000 (4 years 4

months 13 days) __

Total interest claimed___

Grand total of interest claimed..........

$8, 926. 04

10, 905. 20

10, 377. 43

30, 208.67

44, 446. 05

Since the Government was not able to honor the drafts when presented, due to the lack of the availability of funds, it would seem that the Government and not the banks should be responsible for the interest on the funds represented by the drafts for the period of the delay in each case. It appears that the submission of these claims to the Department at this late date is due to the fact that, until there was reason to believe that favorable consideration would be given them, they were not submitted.

As the Department does not consider that the period of time which elapsed between the dates the drafts were paid and the dates of presentation of the claims for interest to the Department has changed the responsibility of the Government in these cases, and, as stated above, since Congress, on March 3, 1927, made an appropriation for the settlement of claims of a nature identical to those presented herewith, I have the honor to request that, if you approve thereof, the Congress be asked to authorize an appropriation in the amount of $44,446.05 for the settlement of the claims in question.

Respectfully submitted.

Mr. THOMAS of Utah, from the Committee on Military Affairs, submitted the following

REPORT

[To accompany S. 978.]

The Committee on Military Affairs, to whom was referred the bill (S. 978), authorizing the Secretary of War to convey to the University of Oregon certain lands forming a part of the Coos Head River and Harbor Reservation, having considered the same, report favorably thereon with a recommendation that it do pass.

S. 978 would authorize the conveyance to the University of Oregon a certain area of land, which is described in the bill, and which is not now being used for river and harbor purposes. Although the land in question is at present occupied by the Civilian Conservation Corps, S. 978 provides that the conveyance to the University of Oregon shall not be made until the Civilian Conservation Corps relinquishes the area. The bill also reserves to the United States the right to use the area for jetty site or sites, right-of-way to such site or sites, and the prior right to the use of three-fourths of the natural flow of streams draining lots 2 and 3.

The bill states further that the lands conveyed shall be used by the University of Oregon solely for scientific and educational purposes subject, however, to the right of the United States, in case of war or other emergency, to assume control of, hold, use, and occupy said lands or any part thereof for any and all military, naval, or other governmental purposes. The bill also states that the deed executed by the Secretary of War under the provisions of section 1 of the act shall contain the express condition that if the University of Oregon shall at any time attempt to alienate said lands that same shall revert to the United States.