78TH CONGRESS 2d Session

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HOUSE OF REPRESENTATIVES

REPORT No. 1354

CHANGING THE NAME OF "WATCHMAN" IN THE POSTAL SERVICE

APRIL 18, 1944.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. O'BRIEN of Michigan, from the Committee on the Post Office and Post Roads, submitted the following

REPORT

[To accompany H. R. 3688]

The Committee on the Post Office and Post Roads, to whom was referred the bill (H. R. 3688) to change the name of "watchman" in the Postal Service to that of "post-office guard," having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

The amendments are as follows:

Beginning in line 5, after "post-office guard", strike out "to perform the same duties and receive the same compensation as laborers" and insert "to receive the same rights, benefits and compensation as provided for laborers (now designated 'mail handler' pursuant to Public Law 259, Seventy-eighth Congress, approved March 20, 1944) in the Classification Act of February 28, 1925,"

PURPOSE OF THE LEGISLATION

The purpose of this proposed legislation is to change the designation of "watchman" in the Postal Service to that of "post-office guard," without change of duties or compensation.

This bill is endorsed by the National Association of Post Office and Railway Mail Service Laborers. They feel that the term "postoffice guard" more fittingly describes their duties.

In reporting on this bill, the Postmaster General said:

Hon. THOMAS G. BURCH,

POST OFFICE DEPARTMENT, Washington, D. C., April 13, 1944.

Chairman, Committee on the Post Office and Post Roads,

House of Representatives.

MY DEAR MR. BURCH: Reference is made to your request for a report upon H. R. 3688, a bill to change the name of "watchman" in the Postal Service to that of "post-office guard."

This Department has no objection to the change of name of these employees. However, the direction that these employees shall perform the same duties and receive the same compensation as laborers is not possible of administration.

By regulation the work to which laborers shall be assigned consists of loading and unloading motortrucks, trucking mail in the office, setting up and taking down bag sacks, dumping mail, making simple distribution of parcels by numbers where no scheme knowledge or reading of addresses is involved, operating canceling machines, cleaning and oiling canceling machines, conveyors, etc., carrying mail from canceling machines to distribution cases and from letter drops to facing tables, handling and emptying pouches and sacks, and such other similar work as the postmaster may direct. Obviously the duties of a post-office guard are not along this line.

To require that post-office guards shall perform the same duties as laborers would leave the Department without the class of employees now designated "watchmen."

We would have no objection to the enactment of this measure if it were amended to read as follows:

"That the classification 'watchman' in the Postal Service is hereby abolished and in lieu thereof there is hereby created the classification of post-office guard' to receive the same rights, benefits and compensation as provided for laborers (now designated 'mail handler' pursuant to Public Law 259, Seventy-eighth Congress, approved March 20, 1944) in the Classification Act of February 28. 1925."

It has been ascertained from the Bureau of the Budget that this report is in accord with the program of the President.

Very truly yours,

78TH CONGRESS HOUSE OF REPRESENTATIVES 2d Session

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REPORT No. 1355

FACILITATING THE SETTLEMENT OF CLAIMS ARISING FROM TERMINATED WAR CONTRACTS

APRIL 19, 1944.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. VINSON of Georgia, from the Committee on Naval Affairs, submitted the following

REPORT

[To accompany H. R. 4469]

The Committee on Naval Affairs, to whom was referred the bill (H. R. 4469) to facilitate the settlement of claims arising from terminated war contracts of the Navy Department, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

The amendments are as follows:

Strike out all after the enacting clause and insert the following: That this Act may be cited as the "War Contract Settlement Act".

TITLE I

PURPOSES OF TITLE

SEC. 2. The purposes of this title are to facilitate prompt, equitable, and final settlement of claims on termination of war contracts and the reconversion of war contractors to other production by providing interim financing to them and by purchasing their surplus inventories, and to provide for the orderly disposition of certain surplus property of the Government.

DEFINITIONS

SEC. 3. When used in this title

(a) "Prime contract" means a contract, agreement, or purchase order for the procurement of goods or services, including amendments, renewals, and extensions thereof, entered into by a contracting agency and connected with or related to the prosecution of the present war; and the term "prime contractor" means any holder of one or more prime contracts.

(b) "Subcontract" means a contract, agreement, purchase order, or commitment, including amendments, renewals, and extensions thereof, connected with or related to the performance of a prime contract or another subcontract, to the extent connected with or related thereto, and the decision of the contracting agency as to the existence and extent of such connection or relationship shall be final; and the term "subcontractor" means the holder of one or more subcontracts.

(c) "Contract", unless otherwise limited, includes prime contracts and subcontracts; and the term "contractor", unless otherwise limited, includes the holder of one or more contracts.

(d) "Government agency" means any executive department of the Government, or any administrative unit or subdivision thereof, any independent agency in the executive branch of the Government, and any corporation owned or controlled by the United States, and includes any contracting agency.

(e) "Contracting agency" means any Government agency which has been or hereafter may be authorized to make contracts pursuant to section 201 of the First War Powers Act, 1941, and the Reconstruction Finance Corporation and its subsidiaries, and the Smaller War Plants Corporation.

(f) "Termination", "terminate", and "terminated" refer to the stoppage, in whole or in part, of performance under a prime contract, for the convenience or at the option of the Government, and not for default of the prime contractor, or to stoppage, in whole or in part, of performance under a subcontract, as a result of termination or cancelation of a prime contract (whether or not for default of the prime contractor) and not for default of the subcontractor.

(g) "Termination date" with respect to any contract means the date for termination of performance thereunder as specified in the notice of termination. (h) "Claim" means any claim by a contractor on account of the termination of a contract.

(i) "Settlement" means the disposition of any claim or part thereof (1) by agreement between a contractor and the appropriate contracting agency; (2) by agreement between a contractor and a subcontractor which is authorized or approved by the appropriate contracting agency; (3) by a decision of the appeals board established pursuant to section 10 hereof, which has become final under the provisions of such section; or (4) by findings of the appropriate contracting agency which have become final under the provisions of section 8 hereof.

(j) "Person" means any individual, corporation, partnership, firm, estate, association, or other organization.

INTERDEPARTMENTAL COMMITTEE

SEC. 4. (a) The Secretary of War, the Secretary of the Navy, the Secretary of the Treasury, the Attorney General, the Chairman of the United States Maritime Commission, the Chairman of the Board of the Reconstruction Finance Corporation, and the Comptroller General, or in lieu of any of the foregoing his alternate or representative, shall meet on the call of the Attorney General within thirty days after the enactment of this Act, select a chairman, vice chairman, and secretary and otherwise organize as an interdepartmental committee (referred to in this title as the "Committee"). A majority of the Committee shall constitute a quorum.

(b) The Committee, as speedily as possible, shall formulate general policies implementing and not inconsistent with the provisions and purposes of this title, with respect to

(1) amendment and settlement of defective contracts and ratification of unauthorized acts and commitments of agents;

(2) settlement of claims based on goods and services supplied;

(3) settlement by agreement;

(4) protection of subcontractors in settlements with contractors;

(5) unit and company-wide settlements;

(6) interim payments;

loans and guaranties;

(8) removal and storage of property;

(9) disposition of property; and

(10) the extent and nature of the record to be made, and the documents and corroborating evidence to be required, in connection with various classes of claims, settlement thereof, review by settlement review board's findings and determinations by the appeals board, and interim payments, loans, discounts, advances, and guaranties under this title.

(c) The Committee shall also to the extent feasible

(1) adopt forms, instructions, procedures, methods, and standards to be utilized in carrying out this title;

(2) resolve and determine controversies between agencies arising in connection with their functions under this title; and

(3) otherwise unify the activities of the several contracting agencies with respect to termination of contracts, interim payments, and financing, and disposal of surplus property.

(d) The Committee shall also adopt such standards with respect to qualification of members of the appeals board created pursuant to this title, as are deemed necessary to safeguard the interests of the Government and of claimants, and shall fix the compensation to be paid appointed members of such boards.

(e) The Committee shall adopt methods and procedures designed to safeguard the Government against the sale by one Government agency of property needed by some other Government agency or agencies.

(f) The Committee shall also study and adopt policies and prescribe regulations as to sales, designed to achieve the following objectives:

(1) avoidance of the glutting of markets, and the Committee shall from time to time consult with the representatives of the various affected businesses as to the best means of accomplishing this objective;

(2) avoidance of the promotion of monopolies;

(3) encouragement of the acquisition of property by public authorities and small purchasers by the avoidance of mass lot sales whenever practicable, and by other suitable means

(4) distribution through regular distribution channels

(5) avoidance of sales to speculators; and

(6) avoidance of unreasonable increases over the price paid by the purchaser for articles and commodities sold hereunder and the price for which such articles and commodities are sold to the consumer.

(g) The Committee shall also prescribe requirements as to sales designed to secure the maximum return to the Government consistent with the foregoing objectives.

(h) All activities of Government agencies under this title and their regulations, procedures, standards, methods, forms, and requirements in connection with such activities, shall be in accordance with policies, procedures, standards, and determinations prescribed or made by the Committee.

SETTLEMENTS AUTHORIZED

SEC. 5. (a) Each contracting agency may make settlement of any claim against the United States arising from the termination of a prime contract entered into by it, or from a subcontract connected therewith, or against any contractor arising from the termination of any such contract.

(b) Settlement may be made regardless of formal or technical defects or omissions in contracts, and unauthorized acts or commitments of officers or agents may be ratified. Contracts, whether or not terminated, may be amended to make contractors eligible for the benefits contemplated by this title. Authority under this title shall also extend to the settlement of claims based on goods or services supplied to or for the contracting agency to the extent that such goods or services inured, or but for termination of the work would have inured, to the benefit of the Government.

(c) Each contracting agency may use controlled accounts, escrow arrangements, trusts, or other devices, to insure that payments made to contractors on account of claims of subcontractors shall be received by such subcontractors, or may pay directly to any subcontractor such part of any settlement as is within the amount due such subcontractor. Where the subcontractor has been deprived of and cannot otherwise reasonably secure a fair payment on his claim, if it is determined by the contracting agency that in equity and good conscience such claim should be paid, it may make a settlement of such claim, even though settlement with respect to the subject matter of such claim already has been included in a settlement with another contractor.

METHODS OF SETTLING CLAIMS

SEC. 6. (a) Settlement by the contracting agency with a contractor may include settlement with respect to his subcontractors, or settlement of the claim of any subcontractor may be made directly with such subcontractor.

(b) Any settlement by any contractor with a subcontractor may be authorized, approved, or ratified by the contracting agency.

(c) On settlement with the contractor of any claim with respect to which there are rights of the contractor against any third party, the United States shall be subrogated to all such rights.

(d) The contracting agency, to the fullest extent feasible, shall provide for the settlement as a unit of all or as many as possible of the claims of a contractor, whether under prime contracts or subcontracts.